CSR audit reporting requirements under Indian law

Author : helios global | Published On : 23 Feb 2026

Under Indian law, CSR is not just a goodwill activity — it is a legal responsibility for certain companies. As per the Companies Act, 2013, eligible companies must spend at least 2% of their average profits on social development activities like education, healthcare, and environmental protection.

While a separate “CSR audit” is not always compulsory, companies must clearly report how the money was used. They need to disclose details of their CSR spending, projects, and any unspent amount in their Board’s Report and file the required forms with the government.

In simple words, the law ensures that companies not only spend on social causes but also remain transparent and accountable about it.