Form CSR-2 is the annual CSR report filed by every company that triggered Section 135 of the Companies Act 2013 in any preceding financial year. Introduced through the Companies (Accounts) Amendment Rules 2022 and governed by Rule 12(1B) of the Companies (Accounts) Rules, CSR-2 captures the complete CSR footprint of the company — net worth / turnover / net profit triggers, average net profit of preceding 3 FYs, 2% prescribed spend, actual spend, ongoing projects, unspent CSR account, set-off / set-on, impact assessment, and CSR Committee & implementing-agency details.
CSR-2 was originally introduced as a one-time form for FY 2020-21 (filed by 31 March 2022). From FY 2021-22 onwards it is an annual filing, filed as a separate web-based addendum to Form AOC-4 / AOC-4 XBRL / AOC-4 NBFC. The form requires the donor company to quote the CSR Registration Number (CRN) of every implementing agency engaged — making CSR-1 of the agency a hard pre-requisite. CSR-2 is signed digitally by an authorised director (and CFO / CS where applicable) and is critical evidence of CSR compliance for ROC, MCA inspections, secretarial audit, and investor / lender diligence. Our CSR-2 Filing Services cover threshold check, computation, project mapping, unspent-CSR reconciliation, web-form drafting, and MCA filing — end-to-end.
Confirming whether the company crossed the Sec 135 trigger — net worth ≥ ₹500 cr / turnover ≥ ₹1,000 cr / net profit ≥ ₹5 cr in the immediately preceding FY — and is liable to file CSR-2.
Computing net profit under Sec 198, average net profit of preceding 3 FYs, prescribed CSR (2%), set-off carry-forward, surplus / set-on adjustments, and final spend obligation.
Mapping every CSR project to Schedule VII heads — education, healthcare, gender equality, environment, rural development, sports, slum, technology, disaster, war veterans, and contribution to specified funds.
Direct by company, through implementing agency (Sec 8 / trust / society with valid CRN), through statutory body, or as collaborative project — capturing CRN in CSR-2 for every agency.
Identifying multi-year projects (≤ 3 years), board approval, project description, modalities, timelines, fund-flow, milestone reporting, and unspent transfer to Unspent CSR Account.
For ongoing projects — unspent transferred to "Unspent CSR Account" within 30 days of FY end and utilised within 3 years. For other unspent — transfer to Schedule VII fund within 6 months of FY end.
Companies with avg CSR obligation ≥ ₹10 cr (preceding 3 FYs) must conduct impact assessment for every project of outlay ≥ ₹1 cr completed at least 1 year prior — disclosed in CSR-2.
Filing CSR-2 as a separate addendum to AOC-4 on MCA V3 portal — drafted, certified by director / CFO / CS, signed digitally, paid (zero govt. fee), and SRN-tracked.
Net worth ≥ ₹500 cr OR turnover ≥ ₹1,000 cr OR net profit ≥ ₹5 cr in immediately preceding FY — any one trigger makes Sec 135 (and CSR-2) applicable.
At least 2% of average net profits (Sec 198) of immediately preceding 3 FYs must be spent on CSR each year, in pursuance of CSR policy and Schedule VII.
Every company covered under Sec 135 must furnish CSR report in Form CSR-2 to ROC, as a web-based addendum to Form AOC-4, AOC-4 XBRL, or AOC-4 NBFC.
Unspent amount of ongoing projects must be transferred to a separate "Unspent CSR Account" in a scheduled bank within 30 days of FY end, utilised within 3 years.
Unspent CSR not relating to an ongoing project must be transferred to a fund specified in Schedule VII (PMNRF, PM CARES, Clean Ganga, etc.) within 6 months of FY end.
Default: company liable to penalty of twice the unspent amount or ₹1 cr, whichever is less; every officer in default — 1/10th unspent or ₹2 lakh, whichever is less.
Companies with avg CSR obligation ≥ ₹10 cr in preceding 3 FYs must conduct impact assessment for every project of outlay ≥ ₹1 cr completed at least 1 year before — disclosed in CSR-2.
Every implementing agency engaged must hold a valid CSR Registration Number (CSR-1) and the CRN must be quoted in CSR-2 — without it, the spend disclosure stands defective.
Reviewing standalone financials of preceding FY — net worth, turnover, net profit — to confirm Sec 135 / CSR-2 applicability, including 3-FY exit-clause analysis.
Computing Sec 198 net profit for the relevant FYs, applying admissible additions / deductions, 3-FY rolling average, and arriving at the 2% prescribed CSR.
Drafting / refreshing CSR policy, CSR Committee composition (Sec 135(1)), annual action plan (Rule 5(2)), board approval, and policy upload on website.
Mapping every project to Schedule VII heads, classifying as one-time / ongoing, geography, beneficiary, mode (direct / agency), and budget.
Verifying CSR-1 / CRN of every agency, MOU drafting, fund-flow, milestone, and reporting framework — defective CRNs flagged and corrected before filing.
Reconciling unspent — ongoing-project transfer to Unspent CSR Account in 30 days; non-ongoing transfer to Schedule VII fund in 6 months; bank-account proof and challan trail.
Tracking excess spend (Rule 7(3) — set-off for next 3 FYs), set-on of unspent on capital assets (Rule 7(4)), and surplus treatment under Rule 7(2).
Engaging an independent agency for impact assessment of qualifying projects, drafting report, board annexure, and disclosure in CSR-2 / Director's Report.
End-to-end drafting of the CSR-2 web-form on MCA V3 — every field validated against board approvals, accounts, and CSR-1 / CRN evidence.
Affixing DSC of director / CFO / CS, payment (zero govt. fee), SRN generation, AOC-4 cross-reference, and tracking till acknowledgement.
Drafting CSR section of Board's Report, annexure-VII (CSR Annual Report), unspent disclosures, impact-assessment summary, and reasons for shortfall (if any).
Belated CSR-2 filings, MCA queries / resubmission cycles, additional-fee handling under Rule 12, and Sec 135(7) penalty quantification with compounding advisory.
Company has crossed CSR threshold for the first time — CSR Committee, policy, action plan, project setup, agency CRNs, and first CSR-2 filing.
Post AGM every year — CSR-2 to be filed as separate addendum to AOC-4 within MCA-prescribed timelines after end of relevant financial year.
Multi-year (≤ 3 years) projects with unspent transfer to Unspent CSR Account — annual progress, utilisation, and milestone reporting in CSR-2.
Excess CSR spent in earlier FY to be set-off against next 3 FY obligation — capture in CSR-2 with board resolution and audit trail.
Shortfall in mandatory 2% — Sec 135(5) reasons in Board's Report, transfer to Schedule VII fund within 6 months, and Sec 135(7) penalty exposure.
Crossed ₹10 cr avg CSR obligation — mandatory impact assessment of qualifying projects and disclosure in CSR-2.
Implementing agency operating without a valid CRN — pause disbursements, fast-track CSR-1 filing, and amend CSR-2 disclosures.
Statutory / secretarial / cost / forensic audit, MCA inspection, or SEBI LODR diligence — past CSR-2 SRNs, board minutes, and fund-flow trail.
Sec 135 applicability, Sec 198 net profit, 3-FY average, 2% obligation, set-off / set-on adjustments.
Schedule VII tagging, CSR Committee & action plan, implementing-agency CRN validation, MOU review.
Project utilisation, unspent CSR Account, Schedule VII fund transfer, impact assessment, surplus treatment.
Web-form drafting on MCA V3, validation against accounts & minutes, director / CFO / CS digital signing.
MCA filing, AOC-4 cross-reference, SRN tracking, board archives, and next-FY CSR calendar.
Partner with our CSR specialists for an end-to-end CSR-2 filing — Sec 198 computation, project mapping, agency validation, unspent reconciliation, impact assessment, and MCA filing.
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