Why does CSR reporting need a closer look?
Indian companies spent a record ₹40,794 crore on CSR in FY 2024–25, according to Fulcrum’s Bharat CSR Performance Report 2026. This scale of investment makes the quality of CSR reporting increasingly important.
The prescribed reporting format captures essential information such as projects undertaken, Schedule VII activities, locations, expenditure and implementing agencies. It also asks for impact assessment details, where applicable. These disclosures are important for accountability, but they do not always provide a complete picture of the outcomes experienced by communities.
Expenditure tells readers where resources were allocated. Outputs show what activities were delivered. Outcomes indicate whether those activities made a meaningful difference. A credible CSR report should help readers understand all three.
Recent research also points to the need for stronger impact measurement and stakeholder participation. Crisil’s CSR Yearbook, released in March 2026, reported that around 20% of qualifying listed companies undertook projects in aspirational districts in FY 2024, with those districts receiving 12% of CSR spending. KPMG’s review of impact reporting among Nifty 250 companies found that, among companies disclosing impact assessments, only 35% considered primary, secondary and institutional stakeholders together.
The focus of CSR reporting is evolving. Readers increasingly want to understand not only how much an organisation contributed, but also whether its initiatives addressed relevant community needs and delivered measurable results.
What is a CSR report, and what does it mean in India?
The meaning of a CSR report varies across markets. Internationally, the term may refer broadly to an organisation’s voluntary account of its social and environmental initiatives. In India, CSR reporting has a specific statutory context because Section 135 of the Companies Act, 2013 establishes CSR obligations for qualifying companies.
A company falls within the ambit of Section 135 if, during the immediately preceding financial year, it meets any one of the following thresholds:
· Net worth of ₹500 crore or more;
· Turnover of ₹1,000 crore or more;
· Net profit of ₹5 crore or more.
Such companies are generally required to spend at least 2% of their average net profits made during the three immediately preceding financial years on activities specified in Schedule VII, subject to the Act and applicable CSR Rules.
In practice, “CSR report” may refer to three related disclosures:
· Annual CSR report: The prescribed statement in Annexure II, forming part of the Board’s Report.
· Form CSR-2: The structured CSR filing submitted to the Ministry of Corporate Affairs in accordance with applicable filing requirements.
· Standalone CSR report: A voluntary, designed publication presenting an organisation’s CSR approach, initiatives, expenditure and impact for a wider audience.
The first two are statutory disclosures. The third is a communication document. When developed together, they can provide readers with a more complete and consistent understanding of an organisation’s CSR performance.
What is the CSR report format in India?
The CSR Rules, 2014 prescribe the format for the annual CSR report through Annexure II to the Board’s Report. The format captures information about the CSR policy, governance arrangements, projects, expenditure, unspent amounts and assets created through CSR activities.
| Annexure II items | What they cover | What readers may want to understand |
| 1 to 3 | CSR policy, CSR Committee details, meetings and relevant web links | Does the policy reflect the organisation’s context and priorities? |
| 4 | Impact assessment details, where applicable | Are the assessment findings available and clearly presented? |
| 5 to 7 | Set-off amounts, average net profit and total CSR obligation | Do the figures reconcile with financial statements and records? |
| 8 | CSR spending across projects, locations, implementing agencies and related costs | Where was the money spent, and who implemented the work? |
| 9 | Unspent amounts relating to ongoing and other projects | Are unspent amounts accounted for and transferred as required? |
| 10 | Capital assets created through CSR and the entities holding them | Who will operate and maintain the assets? |
| 11 | Reasons for any shortfall against the prescribed CSR obligation | Are explanations specific, transparent and supported? |
The statement is signed by the prescribed senior leadership and CSR Committee representatives. It is therefore a formal, board-level disclosure and should be prepared with appropriate care, consistency and supporting documentation.
What should a good CSR report contain beyond the prescribed format?
The statutory format establishes the baseline for disclosure. A standalone CSR report can build on it by explaining the context, rationale and results behind the reported figures. The following six-part structure can help:
1. Why these communities and causes? Explain how the organisation’s business footprint, local context, stakeholder inputs and identified social needs informed its CSR priorities.
2. What was funded? Present expenditure by theme, geography and programme, and reconcile the figures with statutory disclosures.
3. Who benefited? Describe the communities and beneficiary groups reached. Use clearly defined beneficiary counts and avoid double-counting individuals.
4. What changed? Report relevant outputs and outcomes against a baseline or stated target. Where appropriate, include independent impact assessment findings.
5. What did not work as expected? Acknowledge implementation challenges, gaps and lessons learned, along with actions taken in response.
6. What happens next? Set out future priorities, continuation plans, exit strategies and arrangements for sustaining the benefits of completed projects.
A balanced report does not need to present every project as an unqualified success. Transparent reporting of challenges, limitations and corrective action can make the account more credible.
An illustrative CSR report sample:
Less informative: “The programme touched 50,000 lives through health camps.”
More informative: “The programme screened 11,400 women across two districts. Of the 900 people referred for further treatment, 610 completed it. Follow-up was lower than expected in one block, prompting a review of the implementation approach.”
The second example provides a clearer picture because it explains the activity, referrals, follow-through and learning. These figures are illustrative and do not refer to an actual programme.
What can Indian organisations learn from public CSR reporting examples?
Publicly available CSR and impact reports from different sectors offer useful approaches to communicating social investment. The examples below are described by industry rather than organisation name. They highlight reporting practices, not models to copy.
| Industry / organisation type | Reporting practice to look for | What others can learn |
| Leading automobile manufacturer | Discloses the share of beneficiaries from historically underserved communities and reports work across aspirational districts. | Explain who benefits, where programmes operate and which communities are prioritised. |
| Large private sector bank | Presents a long-running community development programme through separate state-level reports. | Use geographic reporting to make information relevant to local stakeholders. |
| Leading IT services company | Publishes an independent impact assessment covering selected projects, including methodology and limitations. | Make evidence accessible and explain the scope and limitations of impact measurement. |
| Major diversified business group | Reports changes in agricultural productivity using before-and-after indicators, alongside livelihood information. | Use outcome measures that are meaningful to the communities concerned. |
The broader lesson is to focus on the quality of evidence rather than the scale of presentation. Where an impact assessment uses assumptions, limited data or a particular attribution method, those limitations should be explained. Measures such as Social Return on Investment (SROI) can provide useful insights, but the assumptions behind the calculation should be transparent.
What is changing in CSR regulation and reporting?
CSR reporting requirements and related filing practices can change through amendments, notifications and clarifications. Organisations should review the latest applicable requirements before finalising disclosures. The manager-provided source highlights the following developments to track:
· Social Stock Exchange route: The source refers to G.S.R. 415(E), dated 27 May 2026, concerning the use of zero coupon zero principal instruments for CSR spending, subject to stated conditions.
· Impact assessment: The source describes the applicable assessment threshold and project eligibility conditions. Companies should check the current CSR Rules and notifications to confirm applicability.
· Structured data and filings: The source notes changes to AOC-4 XBRL and the growing ability to compare narrative disclosures with structured filings.
· Proposed legislative changes: The Corporate Laws (Amendment) Bill, 2026 is described as a pending proposal, not an enacted amendment. Proposed thresholds should not be presented as current law unless the Bill is passed and brought into force.
· Enforcement: The source refers to a January 2026 adjudication order concerning an unspent CSR obligation. Unspent amounts and related transfers require careful monitoring and documentation.
For listed entities, CSR disclosures should also be considered alongside relevant BRSR disclosures, particularly Principle 8, which addresses inclusive growth and the well-being of communities. The relationship between CSR reporting and BRSR should be clear, while recognising that the two serve different disclosure purposes.
This article is intended for general communication and awareness. Companies should consult current law, applicable MCA notifications and professional advisers when determining their specific compliance obligations.
ESG report vs CSR report: What is the difference?
The difference is primarily one of scope. A CSR report focuses on an organisation’s social responsibility initiatives, including projects, expenditure, beneficiaries and outcomes. An ESG or sustainability report has a broader scope, covering how the organisation manages environmental, social and governance matters across its operations and value chain.
CSR is one part of the wider sustainability picture. A strong CSR programme does not, by itself, demonstrate that an organisation is managing its environmental footprint, employee welfare, business ethics or governance risks effectively. These areas need to be addressed through broader ESG disclosures.
How can organisations make their CSR reports more credible?
· Reconcile the numbers. Ensure that expenditure and project details in the narrative are consistent with Annexure II, Form CSR-2, financial records and relevant BRSR disclosures.
· Connect CSR priorities to context. Explain why particular themes, locations and communities were selected, and how those choices relate to identified needs and stakeholder inputs.
· Move beyond “lives touched”. Define beneficiaries clearly, avoid double-counting and distinguish between people reached, services delivered and outcomes achieved.
· Include community perspectives responsibly. Use beneficiary stories and quotations only with informed consent. Represent communities with dignity.
· Disclose limitations and learning. Explain data gaps, implementation challenges and changes made in response.
India’s CSR framework has established an important foundation for corporate social investment and accountability. The next step is to make reporting more meaningful by showing how resources translate into activities, outcomes and sustained community benefits.
Frequently asked questions
What is a CSR report?
A CSR report presents an organisation’s CSR policy, projects, expenditure and results. In India, companies covered under Section 135 of the Companies Act, 2013 must include the prescribed annual CSR statement in the Board’s Report. Some organisations also publish a separate, more detailed CSR report for wider stakeholders.
Is a CSR report mandatory in India?
The prescribed CSR disclosures are mandatory for companies that meet any of the thresholds under Section 135: net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more in the immediately preceding financial year. A standalone CSR report is generally voluntary.
What is the difference between Annexure II and Form CSR-2?
Annexure II is the CSR statement included in the Board’s Report. Form CSR-2 is a separate structured filing with the Ministry of Corporate Affairs. The information in these disclosures should be consistent. Companies should check the latest filing instructions and applicable due dates.
Where can I find CSR reports in India?
CSR disclosures are generally available in the annexures to an organisation’s annual report, often through the investor or annual reports section of its website. Some organisations also publish standalone CSR reports and impact assessments. Listed entities may provide additional context through BRSR disclosures.
Where K&A comes in
K&A supports organisations in developing clear, consistent CSR and sustainability communications. From structuring report narratives and reviewing disclosures to presenting project information and impact data, the focus is on helping organisations communicate their CSR initiatives with clarity and credibility.
A well-prepared CSR report should make it easier for readers to understand not only what an organisation invested, but also the purpose, progress and outcomes of that investment. To learn more about how K&A can support your reporting and communication requirements, get in touch with our team.
