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Home Corporate Social Responsibility

Analysis: Cipla spends Over Rs. 42 Cr on Corporate Social Responsibility (CSR) in FY 2020-21

Rs. 48.15 crores spent on global CSR initiatives including statutory spending of Rs. 42.84 crores by Cipla India, one of the oldest pharma companies.

India CSR by India CSR
August 20, 2021
in Corporate Social Responsibility
Reading Time: 4 mins read
India CSR

CSR: Cipla spends Rs. 36 Cr towards community development projects in FY 2020

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During the financial year 2020-21, Cipla Limited spent Rs 42.84 crores on various Corporate Social Responsibility (CSR) initiatives, which is more than 2% of the average net profit of the last three financial years.

Established in 1935, Cipla, a global pharmaceutical company making medicines accessible and affordable for patients everywhere has incurred Rs. 42.84 crore (31st March 2020: Rs. 36.31 crores) towards CSR activities, as per Section 135 of the Companies Act, 2013 and Rules thereon. It has included in other expenses head in the profit or loss. The amount spent on construction/ acquisition of any assets is Nil during the year.

Gross amount required to be spent by the Company during the year Rs. 42.80 crore (31st March 2020: Rs. 36.24 crores). This includes a contribution of Rs. 30.75 crore (31st March 2020: Rs. 35.11 crores) to Cipla Foundation which is a trust, with the main objective of working in the areas of social, economic, and environmental issues.

Year CSR Spending in Rs. Cr
2020-2142.82
2019-2036.31
2018-1933.42
Total112.55
(CSR Spending in Last 3 Years)

The Group has not carried any provisions for corporate social responsibility expenses for the current year and previous year. The Group does not wish to set off any excess CSR amount spent during the year 2019-20 against the current year’s CSR obligation. The Group does not have any ongoing projects as of 31st March 2021 as defined under Companies (Corporate Social Responsibility Policy) Rules, 2014 (as amended), the company said.

“Our work in the community is carried out through Cipla Foundation, the Corporate Social Responsibility (CSR) arm of the Company. We follow a collaborative approach in our outcome-oriented social change initiatives that aim to fulfill our vision of building an equitable world. While our long-term goal remains to support Agenda 2030, as laid out by the United Nations Sustainable Development Goals, we also address immediate challenges.”, the company added.

“At Cipla, our CSR programs are in line with the CSR Policy of the Company, which is updated to include best-in-class governance mechanisms and statutory amendments.

The Foundation works with credible institutions, non-governmental organisations (NGOs), government agencies, domain experts, visionaries, and other philanthropic foundations (as permissible under the CSR Rules) to enhance the outreach of our CSR initiatives. The Foundation maintains the highest standards of compliance and due diligence, with robust auditing and monitoring mechanisms to govern our engagements with partners and stakeholders, the company further added.

The Foundation works across four key CSR focus areas – health, education, skilling, and environmental sustainability & disaster response – in India and South Africa. In addition to the contribution towards these four key thematic areas, Cipla Foundation has also undertaken initiatives to serve the community at large in response to the COVID-19 pandemic.

‘Caring for Life’ has been at the forefront of Cipla’s business philosophy and remains the principal purpose of doing business. This philosophy is seamlessly integrated into Cipla’s people, products, and processes and is the foundation and underlying objective of the Corporate Social Responsibility Policy of Cipla Limited (‘the Company’). Cipla strives to create a healthier world and enrich the lives of all our stakeholders and community at large through our CSR initiatives. Some of these initiatives were put in place long before the CSR law came into effect.

Key Facts

  • Rs. 48.15 crores spent on global CSR initiatives including statutory spending of Rs. 42.84 crores by Cipla India, one of the oldest pharma companies.
  • The Company has spent the prescribed 2% CSR amount on its various CSR initiatives in the last three financial years.
  • No impact assessments of CSR projects were due in FY 2020-21 and hence not undertaken.
  • The Company’s CSR initiatives and related projects are undertaken through Cipla Foundation, the principal implementation agency, and their implementing partners. The initiatives are compliant with CSR requirements under Section 135 of the Companies Act, 2013.
  • During the year, the Company amended its CSR Policy to align it with the amendments in the Companies (Corporate Social Responsibility Policy) Rules, 2014.

Key focus areas for CSR activities include: 

 i. Health

 ii. Education

 iii. Skilling

 iv. Environment

 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.

(India CSR/August 21, 2021)

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Tags: Cipla FoundationCSR of Cipla LimitedThe philanthropy arm of Cipla Limited

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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