India Inc. is doing much more than just lip service towards Corporate Social Responsibility (CSR) and it is evident from the fact that 1,132 companies listed on the NSE witnessed an annual increase of 17.5% in CSR spends at ₹11,961 crore in FY19. According to nseinfobase.com -- a joint initiative of National Stock Exchange (NSE) and PRIME Database, the average net profit of these companies was over ₹6 lakh crore in FY19, up from ₹5.23 lakh crore in FY18. The CSR spend stood at about 1.99% of the total average net profit in FY19, while the average spend per company was ₹10.57 crore.
Back in FY15, these companies spent ₹6,556 crore or 1.57% of their total net profit on CSR; it was nearly 30% lower than FY19 at ₹7.45 crore on an average per company. “CSR expenditure by companies listed at NSE has grown at a healthy compounded annual growth rate (CAGR) of 17% over the last five years,” says Mukesh Agarwal, CEO, NSE Data & Analytics. As per CSR requirements, the amount required to be spent for FY19 was ₹12,018 crore, but the companies decided to spend a bit more at ₹12,461 crore, but ₹1,343 crore eventually remained unspent. While the CSR law mandates spending across 12 prescribed schedules, few companies deployed CSR spends towards community development, infrastructure, social welfare, child welfare, and other activities.
“In line with the previous year, education received the maximum spend (₹4,440 crore) followed by healthcare (₹3,242 crore),” says Pranav Haldea, managing director, PRIME Database Group which has developed and powers nseinfobase.com. “Areas such as armed force veterans, technology incubators, slum development and disaster management saw negligible spends,” Haldea adds. In terms of company-wise CSR spends, the number of companies which spent on CSR went up to 1,055 (93% of the 1,132 companies) in FY19 compared to 1,024 (94%) in FY18. The balance 77 companies, despite being mandated, did not spend anything, according to nseinfobase.com.
Overall, 653 companies, or 64%, increased their spending as compared to FY18, while there were 488 companies (43%) which exceeded their prescribed spending in FY19. There were also 37 companies, which despite reporting a loss, spent on CSR. On the other hand, there were 332 companies which missed the mandatory spending of 2% of net profit in FY19, compared to 353 in FY18. On the other hand, there were 332 companies which missed the mandatory spending of 2% of net profit in FY19, compared to 353 in FY18. The CSR spends from PSUs touched ₹3,198 crore from 57 PSUs in FY19, as compared to ₹2,710 crore spent by 54 PSUs in FY18.
India Inc. is doing much more than just lip service towards Corporate Social Responsibility (CSR) and it is evident from the fact that 1,132 companies listed on the NSE witnessed an annual increase of 17.5% in CSR spends at ₹11,961 crore in FY19. According to nseinfobase.com -- a joint initiative of National Stock Exchange (NSE) and PRIME Database, the average net profit of these companies was over ₹6 lakh crore in FY19, up from ₹5.23 lakh crore in FY18. The CSR spend stood at about 1.99% of the total average net profit in FY19, while the average spend per company was ₹10.57 crore.
Back in FY15, these companies spent ₹6,556 crore or 1.57% of their total net profit on CSR; it was nearly 30% lower than FY19 at ₹7.45 crore on an average per company. “CSR expenditure by companies listed at NSE has grown at a healthy compounded annual growth rate (CAGR) of 17% over the last five years,” says Mukesh Agarwal, CEO, NSE Data & Analytics. As per CSR requirements, the amount required to be spent for FY19 was ₹12,018 crore, but the companies decided to spend a bit more at ₹12,461 crore, but ₹1,343 crore eventually remained unspent. While the CSR law mandates spending across 12 prescribed schedules, few companies deployed CSR spends towards community development, infrastructure, social welfare, child welfare, and other activities.
“In line with the previous year, education received the maximum spend (₹4,440 crore) followed by healthcare (₹3,242 crore),” says Pranav Haldea, managing director, PRIME Database Group which has developed and powers nseinfobase.com. “Areas such as armed force veterans, technology incubators, slum development and disaster management saw negligible spends,” Haldea adds. In terms of company-wise CSR spends, the number of companies which spent on CSR went up to 1,055 (93% of the 1,132 companies) in FY19 compared to 1,024 (94%) in FY18. The balance 77 companies, despite being mandated, did not spend anything, according to nseinfobase.com.
Overall, 653 companies, or 64%, increased their spending as compared to FY18, while there were 488 companies (43%) which exceeded their prescribed spending in FY19. There were also 37 companies, which despite reporting a loss, spent on CSR. On the other hand, there were 332 companies which missed the mandatory spending of 2% of net profit in FY19, compared to 353 in FY18. On the other hand, there were 332 companies which missed the mandatory spending of 2% of net profit in FY19, compared to 353 in FY18. The CSR spends from PSUs touched ₹3,198 crore from 57 PSUs in FY19, as compared to ₹2,710 crore spent by 54 PSUs in FY18.
(Innovative Financial Advisors Pvt. Ltd. (Fiinovation) is a global consulting firm operating in multiple disciplines of the social development sector with emphasis on Corporate Social Responsibility (CSR) and Sustainability. Fiinovation offers end to end CSR consulting services and simplified solutions that has helped various corporations channelize their resources for the upliftment of community on societal, economic and ecological aspects in accordance to their CSR charter. Since 2008, Fiinovation has grown phenomenally and has made a benchmark in the sector through its service quality. It has been able to bridge the gap between businesses and communities through value-based CSR programmes in association with credible civil society organizations on pan India basis in the field of health, environment, education, and livelihood.
Fiinovation CEO : Dr Soumitro Chakraborty, Chief Executive Officer of Innovative Financial Advisors Pvt. Ltd. (Fiinovation), was conferred with ‘CEO of the year’ award at the 8th World CSR Congress held in Mumbai on February 18.
The World CSR Congress this year focused on the integration of Sustainable Development Goals (SDGs) in corporate strategies, innovation, and strategic alliances. The award recognizes fiinovation projects exemplary work in the social development sector and noteworthy CSR and sustainability programmes.
Fiinovation Delhi NGO address - 24/30, Ground Floor, Okhla Industrial Estate Phase 3 Rd, New Delhi, Delhi 110020 esting/india-incs-csr-spending-grew-over-175-in-fy19/104026
(Innovative Financial Advisors Pvt. Ltd. (Fiinovation) is a global consulting firm operating in multiple disciplines of the social development sector with emphasis on Corporate Social Responsibility (CSR) and Sustainability. Fiinovation offers end to end CSR consulting services and simplified solutions that has helped various corporations channelize their resources for the upliftment of community on societal, economic and ecological aspects in accordance to their CSR charter. Since 2008, Fiinovation has grown phenomenally and has made a benchmark in the sector through its service quality. It has been able to bridge the gap between businesses and communities through value-based CSR programmes in association with credible civil society organizations on pan India basis in the field of health, environment, education, and livelihood
Fiinovation CEO : Dr Soumitro Chakraborty, Chief Executive Officer of Innovative Financial Advisors Pvt. Ltd. (Fiinovation), was conferred with ‘CEO of the year’ award at the 8th World CSR Congress held in Mumbai on February 18.
The World CSR Congress this year focused on the integration of Sustainable Development Goals (SDGs) in corporate strategies, innovation, and strategic alliances. The award recognizes fiinovation projects exemplary work in the social development sector and noteworthy CSR and sustainability programmes.
Fiinovation Delhi NGO address - 24/30, Ground Floor, Okhla Industrial Estate Phase 3 Rd, New Delhi, Delhi 110020
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