CSR Spending in Last 4 Years was amounted over Rs. 165 Crores
NEW DELHI (India CSR): During the financial year 2021-22, Cipla Limited, the third-largest pharmaceutical Company in India spent Rs. 53.25 crores (Against obligation of 52.92 crores) on various CSR initiatives. The amount is more than 2% of the average net profit of the last three financial years, as stated under Schedule VII of the Act and was accordingly compliant with the provisions of Section 135 of the Act and in compliance of its CSR policy.
CSR projects in aspirational district
The company has undertaken CSR projects in aspirational district Visakhapatnam of Andhra Pradesh. It spent Rs. 12.36 lacs.
Serving vulnerable and marginalised communities
The primary objective of the CSR projects is to reach out to the most vulnerable and marginalised communities from a weak socio-economic background from rural as well as urban populations.
Corporate Social Responsibility (CSR) Committee
Established in 1935, the global pharmaceutical company meets the criteria specified under Section 135 of the Companies Act, 2013 and has formed a Corporate Social Responsibility (CSR) Committee to monitor the CSR activities implemented as per the CSR Policy of the Company.
Key focus areas for CSR
The funds allocated are utilised throughout the year on the activities which are specified in Schedule VII of the Act. Key focus areas for CSR activities include Health, Education, Skilling, Environmental Sustainability, Disaster Response, Rural development projects, Research and Development and any other activity permissible under Schedule VII of the Act.
The Cipla Foundation
This includes a contribution to Cipla Foundation which is a trust, with the main objective of working across focus areas of Health, Education, Skilling, Environmental Sustainability & Disaster Response and COVID-19 relief projects. The Company does not have any ongoing projects as of 31st March 2022, and 31st March 2021.
CSR Spending in Last 4 Years
| Year | CSR Spending in Rs. Cr | |
| 2021-22 | 53.25 | |
| 2020-21 | 42.82 | |
| 2019-20 | 36.31 | |
| 2018-19 | 33.42 | |
| Total | 165.80 |
CSR Spending in FY 2020-21
During the financial year 2020-21, Cipla spent Rs 42.84 crores on various Corporate Social Responsibility (CSR) initiatives, which was more than 2% of the average net profit of the last three financial years.
Key focus areas for CSR activities include:
i. Health
ii. Education
iii. Skilling
iv. Environmental sustainability
v. Contribution to government funds for socio-economic development
vi. Research and development
vii. Rural development projects
viii. Disaster management
ix. Any other activity under Schedule VII of the Act
The Company did not set off any excess CSR amount spent during the year 2020-21 against the current year’s CSR obligation. The Company will be setting off the excess spend of H 0.33 crores during the year 2021-22 against the next year’s CSR obligation.
CSR Committee Composition
The Corporate Social Responsibility (CSR) Committee comprises five directors of whom two, including the Chairman, are non-executive directors and two independent directors. The Committee is chaired by M K Hamied and has Adil Zainulbhai, Punita Lal, S Radhakrishnan and Umang Vohra as its members.
The Company Secretary is the secretary of the Committee. The composition of the Committee meets the requirements of section 135 of the Act. Rumana Hamied, Managing Trustee of Cipla Foundation and Anurag Mishra, Head of Cipla Foundation and the Chief Financial Officer are permanent invitees to the CSR Committee meetings.
The CSR Committee met four times during FY 2021-22.
