Ministry of Corporate Affairs Introduces Companies (Accounts) Second Amendment Rules, 2025

On 30^th May 2025, the Ministry of Corporate Affairs (“MCA”) issued a notification introducing Companies (Accounts) Second Amendment Rules, 2025 (“Amendment Rules”) thereby amending certain key provisions of Companies (Accounts) Rules, 2014.

Effective from 14^th July, 2025, the amendment rules aim to enhance digitisation and expand disclosure requirements for Companies.

The Amendment Rules has introduced the following changes to the existing provisions:

1. Under Rule 8, the following fresh disclosures are required to be made in the Board’s Report:
   1. A statement by the company with respect to the compliance of the provisions relating to the Maternity Benefit Act 1961;
   2. Statement affirming compliance with Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 should now include disclosures on:
      1. number of complaints of sexual harassment received in the year;
      2. number of complaints disposed of during the year; and
      3. number of cases pending for more than ninety days.

   
   Note that so far only a confirmation in relation to the constitution of the internal complaints committee under POSH was required to be reported in the board’s report.

   [Rule 8(5)(x) of the AOC Rules]

2. AOC-1, which is the Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures, was initially a manual form which has now transitioned into an e-form. Post this notification, this form (e-AOC-1) is required to be certified by a practising professional.
3. In order to reduce redundancy, while filing e-Form AOC-4, AOC-4 CFS, AOC-4 XBRL, AOC-4 NBFC (Ind AS) or AOC-4 CFS NBFC (Ind AS) (as may be applicable) the following forms shall now be integrated as linked forms within the MCA V3 portal:
   • Extract of Board Report,
   • Extract of Auditor’s Report
   • AOC -1
   • AOC – 2
   • CSR – 2

It is to be noted that while filing the XBRL Forms, Companies now have to mandatorily attach a copy of signed financial statements also which shall be authenticated as per provisions of Section 134 of Companies Act, 2013 i.e. by the Chairperson of the Company, if he is authorised by the Board and where he is not so authorised, be signed by at least two Directors, one of whom shall be a Managing Director, or by the Director where there is one Director.

Source:

Ministry of Corporate Affairs, Notification No. 314, dated 30^th May, 2025.