MCA Revamps Corporate Reporting with New Disclosure Norms Effective July 14, 2025
New Delhi – The Ministry of Corporate Affairs (MCA) has initiated a significant update to corporate financial reporting and transparency through the notification of the Companies (Accounts) Second Amendment Rules, 2025. The notification, issued on May 30, 2025, introduces substantial changes to the Board’s Report disclosures and the process of filing financial statements, all of which will come into force from July 14, 2025.
These amendments are aimed at enhancing corporate governance, ensuring greater accountability, and moving towards a more structured, data-driven reporting system.
Key Highlights of the Amendment:
1. Enhanced Disclosures in the Board’s Report:
The most impactful change lies in the expanded disclosure requirements for the Board of Directors’ Report. Companies will now be mandated to include:
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Detailed Reporting on Sexual Harassment Complaints: Under the section pertaining to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, companies must now provide specific data, including:
- The number of sexual harassment complaints received during the year.
- The number of such complaints disposed of during the year.
- The number of cases pending for a period exceeding ninety days.
-
Statement on Maternity Benefit Compliance: A new clause has been added requiring companies to include a formal statement confirming their compliance with the provisions of the Maternity Benefit Act, 1961.
2. Introduction of New E-Forms for Key Extracts:
In a major move towards digitalization and structured data filing, the MCA has introduced a new procedural requirement for all companies filing their financial statements (via Forms AOC-4, AOC-4 CFS, AOC-4 XBRL, etc.).
- Alongside the primary financial statement form, companies must now separately file the following new e-Forms:
- Extract of Board Report
- Extract of Auditor’s Report (Standalone)
- Extract of Auditor’s Report (Consolidated)
This change implies that crucial data from these reports will now be captured in a machine-readable format, allowing for more efficient analysis by the authorities. It is important to note that companies must still attach the complete, signed financial statements, including the full Board’s and Auditor’s reports, as a PDF to their main filing.
3. Formal Shift to E-Forms:
The rules have formally substituted references from “Form” to “e-Form” (e.g., “e-Form AOC-1,” “e-Form AOC-2”), reinforcing the MCA’s commitment to a fully electronic filing environment.
Implications for Companies
These amendments require companies to immediately refine their internal data collection and reporting mechanisms. They must ensure they can accurately track and report on the newly mandated disclosures for the Board’s Report. Furthermore, corporate secretarial and finance teams will need to adapt to the new filing process involving the submission of separate e-Form extracts.
The Ministry has also drawn attention to Sections 448 and 449 of the Companies Act, 2013, reminding stakeholders of the severe penalties for submitting false statements or evidence. Companies and professionals are advised to review these changes carefully to ensure full compliance by the effective date.
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 30th May, 2025.
G.S.R. 357(E).—In exercise of the powers conferred by sub-sections (1) and (3) of section 128, sub-section (3) of section 129, section 133, section 134, sub-section (4) of section 135, sub-section (1) of section 136, section 137 and section 138 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely:—
1. (1) These rules may be called the Companies (Accounts) Second Amendment Rules, 2025.
(2) They shall come into force with effect from the 14th day of July, 2025.
2. In the Companies (Accounts) Rules, 2014 (hereinafter referred to as the said rules), in rule 5, for the word, letter and figure ―Form AOC-1″, the word, letter and figure ―e-Form AOC-1″ shall be substituted.
3. In the said rules, in rule 8,-
i. in sub-rule (2), for the word, letter and figure ―Form AOC-2″, the word, letter and figure ―e-Form AOC-2″ shall be substituted.
ii. in sub-rule (5),-
(A) in clause (x), after the words and figures, ―Act, 2013 (14 of 2013)”, the following shall be inserted, namely:-
“along with the following details: –
a. number of complaints of sexual harassment received in the year;
b. number of complaints disposed off during the year; and
c. number of cases pending for more than ninety days.”
(B) after clause (xii), the following clause shall be inserted, namely:-
“(xiii) a statement by the company with respect to the compliance of the provisions relating to the Maternity Benefit Act 1961.”
4. In the said rules, in rule 12, after sub-rule (1B), the following sub-rule shall be inserted, namely: –
|”(1C) Every company, along with the relevant e-Form No. AOC-4, AOC-4 CFS, AOC-4 XBRL, AOC-4 NBFC (Ind AS) or AOC-4 CFS NBFC (Ind AS) and the respective attachments in portable document format as required, shall also file e-Form Extract of Board Report, Extract of Auditor‘s Report (Standalone) and Extract of Auditor‘s Report (Consolidated), as the case may be:
Provided that a copy of signed financial statements duly authenticated as per section 134 of the Act (including Board‘s report, auditors‘ report and other documents) in portable document format shall also be attached with XBRL Forms.”
5. In the said rules, in Annexure, for Form AOC-1, AOC-2, AOC-4, AOC-4 CFS, AOC-4-NBFC (Ind AS), AOC-4 CFS NBFC (Ind AS) and CSR-2, the following e-Forms shall be substituted, namely: –
“Form no. AOC-1, AOC-2, AOC-4, AOC-4 CFS, AOC-4-NBFC (Ind AS), AOC-4 CFS NBFC (Ind AS), CSR-2, Extract of Board Report, Extract of Auditor‘s Report (Standalone) and Extract of Auditor‘s Report (Consolidated).”
Form No. AOC-1
Statement containing salient features of the financial statement of Subsidiaries/associate companies/ joint ventures
[Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014]
***
Form No. AOC-2
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under fourth proviso thereto
[Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014]
****
Form No. AOC-4
Form for filing financial statement and other documents with the Registrar
[Pursuant to section 137 of the Companies Act, 2013 and sub-rule (1) of Rule 12 of Companies (Accounts) Rules, 2014]
***
Form No. AOC-4 CFS
Form for filing consolidated financial statements and other documents with the Registrar
[Pursuant to section 137 of the Companies Act, 2013 and Rule 12 of the Companies (Accounts) Rules, 2014]
****
Form No. AOC-4- NBFC (Ind AS)
Form for filing financial statement and other documents with the Registrar
[Pursuant to section 137 of the Companies Act, 2013 and sub-rule (1A) of Rule 12 of Companies (Accounts) Rules, 2014]
***
Form No. CSR-2
Reporting on Corporate Social Responsibility (CSR)
[Pursuant to sub-rule (1B) of Rule 12 of Companies (Accounts) Rules, 2014]
***
Extract of Board Report
[Pursuant to Section 134 of the Companies Act, 2013 and Rule 8, 8A & 12 of The Companies (Accounts) Rules, 2014]
***
Extract of Auditor’s Report (Standalone)
[Pursuant to Section 143(2) of the Companies Act, 2013 read with Rule 12 of the Companies (Accounts) Rules, 2014 and Rule 11 of the Companies (Audit and Auditors) Rules, 2014]
***
Extract of Auditor’s Report (Consolidated)
[Pursuant to Section 143(2) of the Companies Act, 2013 read with Rule 12 of the Companies (Accounts) Rules, 2014 and Rule 11 of the Companies (Audit and Auditors) Rules, 2014]
Note: Attention is drawn to provisions of Section 448 and 449 of the Companies Act, 2013 which provide for punishment for false statement / certificate and punishment for false evidence respectively.
[F. No. 01/1/2024-CL-V-MCA]
INDER DEEP SINGH DHARIWAl, Jt. Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 239(E), dated the 31st March, 2014 and last amended, vide number G.S.R. 317(E) dated 19th May, 2025.
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