The government has put in place a detailed disclosure framework for CSR spending by companies, with experts saying the move will help enhance transparency but at the same time, is also likely to increase the compliance burden. Form CSR-2 (Report on Corporate Social Responsibility) has been notified by the corporate affairs ministry.


  1. Under the Companies Act, 2013, certain classes of profitable entities are required to shell out at least 2 per cent of their three-year annual average net profit towards CSR activities in a particular financial year.
  2. The form requires companies concerned to provide details about the CSR amount spent against ongoing projects as well as those other than ongoing projects.
  3. Other requirements include furnishing details of the amount spent on impact assessment and whether any capital assets have been created or acquired through CSR spent in a given financial year.
  4. Companies having a net worth of at least Rs 500 crore or a minimum turnover of Rs 1,000 crore or net profit of Rs 5 crore or more during the immediately preceding financial year have to spend on CSR activities.
  5. CSR provision under the company’s law came into effect from 1 April 2014.