The Ministry of Corporate Affairs (MCA) has notified significant amendments to the Companies (Accounts) Rules, 2014 and Companies (Audit and Auditors) Rules, 2014 through the Companies (Accounts) Second Amendment Rules, 2025, which became effective on 14th July 2025.
These amendments reflect MCA’s continued focus on digitisation, enhanced transparency, accountability, and comprehensive disclosures in corporate governance. Alongside these rule changes, MCA also launched the final set of 38 company e-forms on the V3 MCA21 portal on 14 July 2025.
Key Provisions of the 2025 Amendments
Below are the major changes, with references to the relevant rules, forms, and their practical implications:
| Amendment | Legal Provision / Rule | What’s New |
|---|---|---|
| Electronic / e-Forms mandatory | Companies (Accounts) Second Amendment Rules, 2025; Rule 5, Rule 8, Rule 12 of Companies (Accounts) Rules, 2014 | Forms AOC-1, AOC-2, AOC-4, AOC-4 CFS, AOC-4 NBFC (Ind AS), AOC-4 CFS NBFC (Ind AS) and CSR-2 must now be filed as e-forms. Attachments such as the Board Report and Auditor’s Report extracts are also required to be filed in electronic / PDF / portal-linked format. |
| Extracts of Board Report / Auditor’s Report | Insertion of sub-rule (1C) in Rule 12 of Companies (Accounts) Rules, 2014 | Companies filing e-forms for financial statements must also file extracts of the Board Report, Auditor’s Report (Standalone), and Auditor’s Report (Consolidated), as applicable. |
| Disclosures under Board’s Report – PoSH & Maternity Benefit Act | Rule 8 of Companies (Accounts) Rules, 2014 — amended | Additional mandatory disclosures in the Board Report:
|
| Authentication / Signing requirements | Companies (Accounts) Rules, 2014; XBRL / e-Forms etc. | Signed financial statements filed via XBRL or e-Forms must be authenticated under Section 134 of the Companies Act, 2013 — by the Chairperson if authorised, or by at least two Directors (one of whom should be the Managing Director, if applicable). |
| Effective date | Notification G.S.R. 357(E), etc. | All changes come into force from 14 July 2025. |
Key Steps for Ensuring Compliance
To align with the new requirements, companies should undertake the following actions:
- Review internal processes for preparation of Board and Auditor Reports to ensure that new disclosures (PoSH, maternity benefit, extract filings) are included.
- Update templates for financial statements, Board Reports, and Auditor Reports to incorporate new fields and disclosure formats.
- Ensure proper authentication: Directors (Chairperson or two Directors, including MD where applicable) should be authorised and prepared to authenticate the signed financials and reports.
- Build awareness across teams: Legal, HR, and compliance departments should be familiar with PoSH and maternity compliance obligations, complaint resolution timelines, and record-keeping norms.
- Check MCA V3 portal readiness: Test e-form filing processes for AOC-1, AOC-2, AOC-4, etc., and ensure all attachments are correctly formatted and ready for submission.
- Coordinate with auditors: Ensure that auditor’s reports are aligned with the new extract filing requirements and formats.
- Maintain records and evidence: Keep systematic documentation of sexual harassment complaints, their disposal timelines, and maternity benefit compliance evidence.
Conclusion
The MCA’s 2025 amendments to the Companies (Accounts) and Audit Rules signify a major step towards digitised compliance and enhanced governance disclosures. Effective 14 July 2025, companies must ensure readiness in terms of templates, systems, and documentation to avoid non-compliance.
By integrating these new requirements into their annual reporting and disclosure processes, companies can maintain statutory compliance while reinforcing a culture of accountability and transparency in governance.