Published on: July 2025
Tags: #POSHActIndia #MaternityBenefitCompliance #CompaniesAct2025 #BoardReportFiling #MCARulesUpdate #LegalComplianceIndia
🏛️ Introduction
In a move to enhance workplace accountability and promote gender-sensitive governance, the Ministry of Corporate Affairs (MCA) has notified the Companies (Accounts) Second Amendment Rules, 2025. This amendment, published under GSR 357(E) dated 30th May 2025, becomes effective from 14th July 2025, and mandates quantitative disclosures related to the POSH Act, 2013 and Maternity Benefit Act, 1961 in the Board’s Report of companies.
This update is a game-changer for corporate India, bringing employee-centric reporting, gender diversity tracking, and real-time POSH compliance into the mainstream of annual disclosures.
📌 What’s New in the 2025 Amendment?
1️⃣ POSH Act Mandatory Disclosures in Board’s Report
For the financial year ending March 31, 2025 and thereafter, every company must disclose:
- 📥 Number of sexual harassment complaints received
- 🗂️ Number of complaints disposed of within the same year
- ⏳ Number of complaints pending for more than 90 days
This makes compliance with the POSH Act measurable, auditable, and visible to stakeholders.
2️⃣ Maternity Benefit Act Compliance Statement
Companies must now formally confirm adherence to the Maternity Benefit Act, 1961, ensuring that maternity leave benefits, workplace facilities, and related provisions are duly followed.
3️⃣ Gender-wise Employee Strength
Filing formats now require companies to disclose:
- 👨 Total Male Employees
- 👩 Total Female Employees
- ⚧️ Total Transgender Employees
This aligns with India’s push towards inclusive workplaces and diversity reporting.
🧾 New e-Filing Requirements via MCA Portal
Companies are now required to upload the following PDF attachments along with e-Form AOC-4 / AOC-4 XBRL / AOC-4 CFS:
- 📑 Extract of the Board’s Report
- 📑 Extract of the Auditor’s Report (Standalone and Consolidated)
These attachments must be digitally signed and submitted through the MCA V3 filing system, streamlining corporate compliance workflows.
⚠️ Legal Penalties for Non-Compliance
Failure to comply with the above disclosure mandates will attract serious legal consequences:
Non-Compliance Area | Penalty – Company | Penalty – Officer-in-Default |
|---|---|---|
Omission in Board’s Report | ₹3,00,000 | ₹50,000 |
Breach of POSH Act Sections 21–22 | ₹50,000–₹1,00,000 | Possible deregistration or prosecution |
⛔ Repeat offences under the POSH Act may lead to cancellation of business licenses or government contract disqualification.
🧠 Who Is Affected?
This amendment applies to all companies registered under the Companies Act, including:
- 🏢 Public Limited Companies
- 🧾 Private Limited Companies
- 🏭 Manufacturing Firms
- 🏨 Hospitality, IT, Retail, and Service Sector Employers
Exceptions: Certain OPCs and small companies may be granted limited compliance relaxation, but only to a minimal extent under Section 446B of the Companies Act.
🛠️ Action Points for Compliance Teams
To avoid penalties and ensure smooth filing, companies must immediately:
- 🔄 Update their Board’s Report template for FY 2024–25
- 📊 Implement dashboards to track POSH complaint timelines
- 🧾 Review maternity policy compliance and documentation
- 👨💻 Train HR, Legal, and Secretarial departments on gender data collection
- 📂 Ensure accurate attachment and submission of e-Form AOC‑4 with required extracts
📍 Strategic Benefits of Timely Compliance
✅ Enhance your company’s reputation for workplace ethics
✅ Improve audit readiness and regulatory standing
✅ Boost investor confidence through transparent disclosures
✅ Reduce risk of litigation, penalties, and regulatory inspections
✅ Foster a safe, inclusive, and gender-sensitive workplace
🤝 Need Professional Assistance?
At Prakash Consultancy Services (PCS), we help you stay ahead of regulatory deadlines. Our team of legal and compliance experts can support you with:
- Drafting POSH-compliant Board’s Reports
- Conducting internal audits on POSH and maternity compliance
- Filing AOC-4 and associated forms on the MCA portal
- Designing HR dashboards for real-time POSH case tracking
📎 Conclusion
The Companies (Accounts) Second Amendment Rules, 2025 is a significant reform towards fostering gender equality, transparency, and corporate integrity in India. This amendment is not just a filing requirement — it’s a cultural shift towards safer workplaces and proactive governance.
Companies should act now to align with the changes, avoid heavy penalties, and demonstrate a strong commitment to gender justice and labour law compliance.
