📢 The Ministry of Corporate Affairs (MCA) has introduced new disclosure requirements in the Board’s Report under the Companies (Accounts) Second Amendment Rules, 2025.
Companies must now disclose:
✔ Sexual Harassment complaints at the workplace
✔ Compliance with the Maternity Benefit Act
This article explains who must report these disclosures, when they become applicable, and what details must be included in the Board’s Report.
📌 Applicability of the New Disclosure
The new disclosure requirements become effective from 14 July 2025.
They apply to:
✔ Private Companies
✔ Public Companies
✔ Listed Companies
In short, every company preparing a Board’s Report under Section 134 of the Companies Act, 2013 must include these disclosures.
1️⃣ Disclosure of Sexual Harassment Cases in Board’s Report
Companies are now required to report details of sexual harassment complaints received at the workplace during the financial year.
This requirement aligns with the Prevention of Sexual Harassment (POSH) Act, 2013.
📊 Details to be Disclosed
The Board’s Report must include the following information:
✔ Number of sexual harassment complaints received during the year
✔ Number of complaints disposed of during the year
✔ Number of complaints pending for more than 90 days
These details must be based on records maintained by the Internal Complaints Committee (ICC).
📌 Suggested Disclosure Format
Companies may present the disclosure in a simple table:
| Particulars | Number |
|---|---|
| Complaints received during the year | XX |
| Complaints disposed during the year | XX |
| Complaints pending for more than 90 days | XX |
2️⃣ Disclosure of Compliance with Maternity Benefit Act
Another new requirement is disclosure regarding compliance with the Maternity Benefit Act, 1961.
This law protects the rights of women employees during pregnancy and maternity leave.
Companies must confirm that they follow maternity benefit provisions applicable to employees.
📊 What Companies Must Report
The Board’s Report must confirm compliance with:
✔ Maternity leave provisions
✔ Payment of maternity benefits
✔ Protection of employment during maternity leave
📌 Example Disclosure in Board’s Report
A simple disclosure may read:
“The Company confirms that it has complied with the provisions relating to maternity benefit as prescribed under the Maternity Benefit Act, 1961.”
📌 Conclusion
The Companies (Accounts) Second Amendment Rules, 2025 introduce important disclosures that strengthen workplace governance and employee protection.
From 14 July 2025, companies must ensure their Board’s Report includes:
✔ Sexual harassment complaint details
✔ Confirmation of maternity benefit compliance
Companies should maintain proper coordination between HR departments, Internal Complaints Committee (ICC), and management to ensure accurate reporting.
CA RAMAKRISHNA SANJAY
Chartered Accountant
7760252581
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