India CSR News Network
MUMBAI: There is substantial improvement in the actual CSR spend to prescribed CSR in FY 2015-16. While it was 79% in FY 2014-15, it has increased to 92% in last financial year., a new CSR report said.
10 larger companies together spent Rs 3350 Cr in CSR while their prescribed CSR was Rs 3064 Cr. This is almost 9% more than what the Section 135 asks for.
A new CSR report, which highlights the various curves and developments in the CSR spending by big 250 companies listed on BSE or NSE.
The India CSR Outlook report was launched in the inaugural session of India CSR Summit and CSR partnerships Exhibition 2016, an annual CSR event hosted by NGOBOX and co-hosted by National Green Highway Mission, NHAI in Mumbai today.
It was significant from the point that the Companies Act 2013 mandated certain companies to include CSR reporting as part of the annual report. The report of 2015-16 CSR also helps in understanding how companies have moved further to meet the compliances in CSR.
According to the report, 58% of the companies have spent either exactly as the prescribed CSR or more than the prescribed CSR. This is a good improvement from the FY14-15 where this percentage was 48%.
While in 2014-15, there were 3 companies who had not spent any single penny from the prescribed CSR budget, in 2015-16 all companies have spent certain amount from the CSR budget. This indicates that companies have become serious about the CSR and they are endeavoring to match the prescribed CSR requirements with the actual CSR spend. The fact that 58% of the companies spent exactly as prescribed or more than the prescribed, shows a lot of improvement in the CSR compliance level.
In 2014-2015 only Reliance Industries had spent more than the prescribed CSR among the top 10 performers. While in 2015-16, we see five companies, among the top 10, spending more than the prescribed CSR. This indicates that companies are ready to raise the bar for CSR projects. However, our interaction with a few companies has raised one pertinent question- Do the shareholders allow companies to invest more than the prescribed budget on CSR! Social good beyond the legal provision still needs to be tested through the lens of shareholders as this is just the beginning for mandatory CSR and the landscape is still evolving.
Top 10 Companies-By Actual CSR Spend
|Company||Actual CSR Spend (Rs Cr)||Prescribed CSR
|ICICI Bank Ltd||172||212|
|Power Finance Corp Ltd||196||145|
|National Mineral Development Corporation||210||193|
|Tata Consultancy Services Ltd||294||360|
|Oil & Natural Gas Corp Ltd||221||594|
|Reliance Industries Ltd||652||558|