CSR spends of 920 firms up nearly 28% to Rs 8,300 crore in 2015-16
About 920 companies have witnessed a rise of nearly 28% in their expenditure on corporate social responsibility (CSR) in 2015-16, said PRIME Database in a press release on Monday.
According to PRIME Database analysis of 920 NSE-listed companies, the final actual expenditure by these firms increased by 27.9% to Rs 8,345 crore in 2015-16 as against Rs 6,526 crore in 2014-15.
CSR law, which came into force in April 2014, mandates companies subject to the provisions of the Act to invest 2% of their net profit in CSR projects.
Companies with net worth of Rs 500 crore and above or revenue of Rs 1,000 crore and above or net profit of Rs 5 crore and above have to spend 2% of average net profits of last three years.
Under the CSR Act, the companies invest their average net profits in projects such as eradicating extreme hunger and poverty, promoting education, contributing to the prime minister's National Relief Fund or any other fund set up by the government, etc.,
In 2015-16, the education sector saw a maximum CSR spends by companies at 24% to Rs 2,042.15 crore which was followed by healthcare at 20% to Rs 1,637.79 crore, showed the findings of PRIME Database. During the period, companies had spent 21% or Rs 1,782 crore in other matters.
However, areas such as child mortality, improving maternal health, promotion of gender equality and social business projects witnessed negligible spends, it said.
According to the findings, the CSR contribution of 920 companies to prime minister funds saw the maximum rise of 418% to Rs 868.74 crore in 2015-16 as against Rs 167.74 crore in 2014-15. Hunger and poverty saw an increase of 66% to Rs 505 crore in CSR spend while gender equality and women empowerment witnessed 38% to Rs 138 crore growth.
The CSR spends on child mortality and maternal health saw the maximum decrease of 22% to Rs 29.30 crore in 2015-16 as against Rs 37.41 crore in 2014-15.
As per PRIME Database analysis, the top 10 companies in terms of absolute CSR spends are Reliance Industries (Rs 652 crore), NTPC (Rs 491.80 crore), ONGC (Rs 409.01 crore), Tata Consultancy Services (Rs 294.23 crore), ITC (Rs 247.50 crore), NMDC (Rs 210.09 crore), Tata Steel ( Rs 204.46 crore), Infosys (Rs 202.30 crore), Power Finance Corporation (Rs 196.88 crore) and ICICI Bank (Rs 171.51 crore).
Some of the top companies which witnessed increase in the CSR spends in absolute terms in 2015-16 are NTPC (Rs 491.80 crore), Power Finance Corporation (Rs 196.88 crore), Gail India (Rs 104.83 crore), Rural Electrification Corporation (Rs 128.30 crore) and Tata Consultancy Services (Rs 294.23 crore), among others.
PRIME Database said in a release that companies which missed the mandatory spending of 2% of profit decreased from 422 in 2014-15 to 376 in 2015-16.
In terms of companies in the highest unspent amount in CSR in 2015-16, ONGC lead the top ten companies list with Rs 184.69 crore, followed by Bharti Airtel with Rs 145.06 crore, HCL Technologies with Rs 130.47 crore, HDFC Bank with Rs 120.72 crore, Hindustan Zinc with 106.79 crore, among others.
According to PRIME Database managing Director Pranav Haldea, the CSR spending of 47 public sector units (PSUs) in 2015-16 went up by 41.3% to Rs 2,936 crore as compared to Rs 2,078 crore spent by 48 PSUs in 2014-15.
Top states which received maximum CSR spends during the period are Andhra Pradesh and Telangana (Rs 629.70 crore), Maharashtra (Rs 529.50 crore), Gujarat (Rs 493.89 crore), Rajasthan ( Rs 466.64 crore) , Tamil Nadu (Rs 413.61 crore), etc.,cited the findings.