MCA Notifies Companies (Accounts) Second Amendment Rules, 2025

The Ministry of Corporate Affairs (MCA) has introduced major reforms aimed at enhancing corporate financial reporting and transparency by notifying the Companies (Accounts) Second Amendment Rules, 2025.

Notified on May 30, 2025, these amendments bring significant changes to Board’s Report disclosures and the filing process for financial statements. The revised rules will come into effect from July 14, 2025.

One key highlight is the enhanced disclosure requirements in the Board’s Report. Companies must now provide detailed reporting on complaints under the Sexual Harassment of Women at Workplace Act, 2013, along with a formal statement confirming compliance with the Maternity Benefit Act, 1961.

To support digitalization, the MCA has also introduced new e-Forms. Companies filing financial statements through AOC-4 and its variants must now additionally submit extracts of the Board Report, Auditor’s Report (Standalone), and Auditor’s Report (Consolidated) in separate e-Forms. This shift aims to make data machine-readable for better regulatory oversight, while still requiring the full signed reports to be attached in PDF format.

Furthermore, the amendment replaces the term “Form” with “e-Form” across relevant filings, reinforcing a move to a fully electronic environment.

These changes require companies to upgrade internal systems for data collection and ensure accuracy in new reporting obligations. The MCA also reminded stakeholders of strict penalties under Sections 448 and 449 for any false or misleading disclosures.