Govt looks to ease compliance burden with new CSR disclosure rules

The new rules have also revised the amount to be spent on impact assessment of CSR projects to 2 per cent of total CSR obligation or Rs 5 million, whichever is higher

The Ministry of Corporate Affairs’ (MCA’s) decision to omit key details of CSR projects in the annual report is to avoid duplication and reduce the compliance burden on companies, a senior government official told Business Standard. 

Companies have to provide details of their corporate social responsibility projects, such as activity, area, project duration, and mode of implementation, on the MCA21 portal in a form called CSR-2. The MCA in its September 20 notification on the Companies (Corporate Social Responsibility Policy) Amendment Rules did away with these details in Annexure II. The form provided a format in which companies had to report