The Companies Act mandates spending on CSR activities by the companies
Jasleen Kaur | October 24, 2016 | New Delhi
The spending under the corporate social responsibility (CSR) by the NSE listed companies has seen a huge increase of 28% in 2015-16. The Companies Act (2013) has statutory provisions, making the CSR mandatory for companies with net worth of Rs 500 crore or more, turnover of at least Rs 1,000 crore and net profit of at least Rs 5 crore are required to spend at least 2 percent of their average net profits of last 3 years on CSR activities, while constituting a separate committee on their board. The law, implemented from April 2014, makes India the only country with legislated CSR.
There are 1,579 companies listed on NSE, 1,520 companies were listed during 2015-16 (balance 59 have got listed subsequent to April 2016). Out of 1,520 companies, annual reports for 2015-16 have been released by 1,421 companies.
Of these 1,421 companies, 1,332 had details relating to CSR given in the annual reports, while no such details were available for the rest of the 89 companies.
Of the 1,332 companies, 920 were applicable under the provisions of CSR in the Companies Act, up from 895 companies in 2014-15. The analysis is thus based on the data of 920 companies.
According to Prime Database, which compiles data on capital markets and related matters, which has done analysis of this data - the average net profit of these 920 companies over last 3 years was Rs 4.60 lakh crore. As per the CSR provision, the companies were required to spend Rs 9,146 crore. The companies, however, went one step further and spent Rs 9,309 crore, Rs 163 crore more than the requirement.
However, Rs 1,984 crore remain unspent and the final actual CSR expenditure by these companies was Rs 8,345 crore. This is an increase of 28 percent from Rs 6,526 crore spent in 2014-15.
The data shows that the maximum spending of CSR by the companies has been on the education sector, followed by Healthcare.
In comparison to previous year, CSR spending as contribution to PMs funds saw the maximum increase by 418% from Rs 168 crore in 2014-15 to Rs 701 crore in 2015-16. This was followed by spending on hunger/poverty (66% increase) and gender equality (38 %). Meanwhile, spending on child mortality and maternal health saw the maximum fall with 22 %. According to Pranav Haldea, allocation as a percent of total under different schedules though remained fairly constant.
According to data the top 10 companies in terms of CSR spend are
|Rank||Company||CSR expenditure (Rs.cr)|
|1||RELIANCE INDUSTRIES LTD.||651.57|
|3||OIL & NATURAL GAS CORP.LTD.||409.01|
|4||TATA CONSULTANCY SERVICES LTD.||294.23|
|7||TATA STEEL LTD.||204.46|
|9||POWER FINANCE CORP.LTD.||196.88|
|10||ICICI BANK LTD.||171.51|
|Company||Prescribed CSR expenditure (Rs.cr)||Actual CSR expenditure (Rs.cr)||Excess spend (Rs.cr)|
|RELIANCE INDUSTRIES LTD.||557.78||651.57||93.79|
|TVS MOTOR CO.LTD.||7.15||78.26||71.11|
|TATA STEEL LTD.||150.00||204.46||54.46|
|COAL INDIA LTD.||19.69||73.26||53.57|
|GUJARAT MINERAL DEVELOPMENT CORP.LTD.||14.47||66.03||51.56|
|POWER FINANCE CORP.LTD.||145.79||196.88||51.09|
|NLC INDIA LTD.||44.27||81.93||37.66|
|STEEL AUTHORITY OF INDIA LTD.||57.20||76.16||18.96|
|Company||Prescribed CSR expenditure (Rs.cr)||Actual CSR expenditure (Rs.cr)||Unspent Amount (Rs.cr)|
|OIL & NATURAL GAS CORP.LTD.||593.70||409.01||184.69|
|BHARTI AIRTEL LTD.||189.00||43.94||145.06|
|HCL TECHNOLOGIES LTD.||144.63||14.16||130.47|
|HDFC BANK LTD.||248.00||127.28||120.72|
|HINDUSTAN ZINC LTD.||170.05||63.26||106.79|
|TATA CONSULTANCY SERVICES LTD.||360.00||294.23||65.77|
|CAIRN INDIA LTD.||107.21||51.50||55.71|
|HOUSING DEVELOPMENT FINANCE CORP.LTD.||139.26||85.70||53.56|
|BHARAT HEAVY ELECTRICALS LTD.||110.03||66.20||43.83|
According to Haldea, PSU spending saw a huge increase of 41 % from previous year. The 48 PSUs spent Rs 2,078 crore in 2014-15. Whereas, 47 PSUs spent Rs 2,936 crore in 2015-16.
The CSR Act also mandates companies to appoint a CSR committee comprising at least 3 members of the board of which at least 1 should be independent. 1197 out of 1520 companies had such a CSR committee in place. Several companies though went beyond the requirement. According to Haldea, as many as 331 companies had appointed more than 3 members.
Stepping up the momentum for construction of the Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline (JHBDPL) and Barauni – Guwahati Pipeline (BGPL) pipeline, GAIL (India) has winded up finalising awards for Rs 10,500 crore contracts for pipe supply and laying of the integrated 3,400 km-lo
People stare at the barren fields. They remember how green this stretch was, what a dense jungle there was, even if it is difficult for a visitor to imagine so. This land once supported its people, providing them enough opportunity to earn from their labour. Today, the stretch lies unused, a constant rem
To ensure safety of passengers and better comfort, Konkan Railway has decided to replace the old coaches of Madgaon Junction-Mumbai CSMT Mandovi express and Madgaon Junction-Mumbai CSMT Konkankanya express with German LHB design coaches. The LHB coaches have been designed for i
State run BSNL has installed 54,000 telecom towers in the recently concluded 2018-2019 fiscal, which is higher than the combined figures of the previous three financial years. BSNL claimed that over 50 lakh subscribers have ported their number to BSNL from other operators in 20
BSNL has recently rolled out its premium ‘Bharat Fibre’ service in Pulwama town in the Kashmir Valley. Bharat Fibre service delivers high speed internet and high quality voice services to its customers. The customer can chose from various unlimited data with unlimit
Chartered accountants may have succeeded stupendously in business or as corporate heads. But as auditors, they haven’t given a sterling account of themselves as the gatekeepers they are meant to be. The whiff of chicanery hanging around lawyers now hangs around big auditing firms and CAs too. Of late