Module: | Statutory Audit, NFRA & ICAI Standards
Q43: Consider the following statements regarding the Companies (Accounts) Second Amendment Rules, 2025, affecting the Board's Report:
1. Companies are mandated to electronically file Form AOC-2, which specifically deals with the disclosure of material related party transactions.
2. The Board's Report must transparently disclose the exact number of complaints formally registered under the Prevention of Sexual Harassment (POSH) Act during the financial year.
3. The rules mandate the inclusion of a compliance statement affirming the company's adherence to the provisions of the Maternity Benefit Act, 1961.
Which of the above statements is/are correct?
2. The Board's Report must transparently disclose the exact number of complaints formally registered under the Prevention of Sexual Harassment (POSH) Act during the financial year.
3. The rules mandate the inclusion of a compliance statement affirming the company's adherence to the provisions of the Maternity Benefit Act, 1961.
Which of the above statements is/are correct?
✅ Correct Answer: D
🎯 Quick Answer:
D. All statements 1, 2, and 3 are correct.Structural Breakdown: Statement 1 is correct; the amendment shifted forms like AOC-2 (RPTs) and AOC-1 (Subsidiaries) from physical attachments to mandatory electronic filings.
Statement 2 is correct; quantitative disclosure of POSH complaints is now a strict mandate to enforce workplace safety.
Statement 3 is correct; explicit affirmation of compliance with the Maternity Benefit Act was added to protect female workforce participation.
Historical/Related Context: Historically, ESG (Environmental, Social, and Governance) metrics were restricted to listed companies under SEBI's BRSR framework.
The 2025 MCA amendment pushes the "Social" aspect deeper into the corporate ecosystem, affecting unlisted entities.
Causal Reasoning: Mandating these disclosures directly in the Board's Report elevates workplace safety and gender inclusivity from a human resources issue to a critical, board-level fiduciary responsibility.