Quarterly Reporting Mandatory for High-Value Section 8 Companies

In a move to tighten financial oversight and ensure continuous transparency, the Ministry of Corporate Affairs (MCA) has mandated quarterly reporting for high-value Section 8 companies. This new compliance requirement applies to non-profit entities with significant annual turnover, large CSR fund inflows, or substantial foreign contributions, as defined under new thresholds set by the government.

Under the revised guidelines, Section 8 companies exceeding ₹5 crore in annual receipts or handling major CSR-funded projects must now submit quarterly financial and operational reports via the MCA’s designated portal. These reports will include details on fund utilization, project milestones, administrative expenses, and beneficiary outreach metrics.

The decision is aimed at improving real-time monitoring and reducing the risks of financial mismanagement or fund diversion in the non-profit sector. The quarterly updates will be subject to review by the Registrar of Companies (RoC), with discrepancies potentially triggering audits, inspections, or regulatory action.

Officials have stated that this requirement will not burden smaller organizations but will bring greater accountability to high-impact, high-capacity entities entrusted with large-scale public and donor funds. It also aligns with global best practices, where periodic reporting is standard for organizations managing significant charitable resources.

Non-profit experts and financial auditors have welcomed the move, calling it a progressive step that ensures responsible stewardship of funds and fosters donor confidence. The initiative underscores the government’s commitment to maintaining the integrity of Section 8 companies and promoting a culture of ongoing transparency in India’s social development landscape.