For quite some time now, the Ministry of Corporate Affairs (MCA) has been striving to improve transparency in how critical financial statements are being reported. In line with this, the Ministry had released a statement stating that from April 2021, they were making certain additional disclosures in financial statements mandatory. These were released as amendments to Schedule III of the Companies Act. The new disclosures mostly pertain to the world of virtual money transactions, commonly known as crypto currency. Another sphere of working that has been included is concerning expenditures for CSR that a company makes in one financial year.In this blog, we walk you through the details pertaining to each of these disclosures.
Disclosures for Crypto Currency or Virtual Currency
Every company that has traded or invested in these modes of transactions during a given financial year is now required to provide details regarding:
Gains and losses on Crypto/Virtual transactions
The quantum of currency in possession at the date of reporting
Investments or advances sought to indulge in these transactions
Disclosures for Corporate Social Responsibility (CSR)
Every company that is covered under section 135 of the companies Act is now required to provide details of their CSR activities about:
The estimated amount that is likely to be needed for CSR during the year,
Expenditure for CSR activities in the financial year
Excess amount spent at the end of the year,
Historical data of excess amount over the last year,
The explanation for shortfalls or excess amounts,
Details about the CSR activities,
Details about any related transactions for CSR, like contribution to a trust controlled by the company
Elements of a contract that was entered into where liability was incurred, and thus provisions were given.
If you are looking for help complying with MCA’s mandates for regulatory reporting, DataTracks is your ideal partner. We come with over 16 years of experience assisting over 20,000 clients globally with their compliance needs. Get in touch today.
Get the latest updates in your inbox
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.