New Delhi: Government is amending the form for furnishing annual financial statements under the companies law as part of efforts to ensure that CSR spending figures are reported in a proper manner.
The Corporate Affairs Ministry, which is implementing the Companies Act, is in the process of making amendments to AOC-4 XBRL form -- which is used to submit annual financial statements.
Xtensible Business Reporting Language (XBRL) is used for communicating financial and business data electronically.
In a communication to stakeholders, the ministry said "AOC-4 (XBRL) for filing annual financial statements is being amended to include mandatory CSR/ CARO related details".
CSR refers to Corporate Social Responsibility while CARO stands for Companies (Auditor's Report).
Companies would be required to submit their financial statements in the revised form, expected to be made available next month, in respect of financial years starting on or after April 1, 2014.
The amended form would help in carrying out data extraction related to CSR spending in a more easier and efficient manner, an official said.
Proper extraction of data can help in better analysis about CSR expenditure by companies.
Certain class of entities are required to shell out at least 2 per cent of their 3-year annual average net profit towards CSR activities under the Companies Act, 2013. CSR norms came into effect from April 1, 2014.
Companies having a turnover of at least Rs 1,000 crore, minimum net worth of Rs 500 crore and those having net profit of Rs 5 crore or more in a financial year are required to comply with CSR norms.
Government informed Rajya Sabha last month that over 1,900 companies shelled out a total of Rs 8,029 crore towards CSR activities in 2014-15.
"An assessment of CSR expenditure of 4,257 companies for the year 2014-15 indicates that 116 public sector undertakings and 1,790 private sector companies together have spend Rs 8,029 crore during 2014-15," Minister of State for Corporate Affairs Arjun Ram Meghwal had said.