Asian Paints, headquartered in Mumbai, which is in the business of manufacturing and selling a wide range of paints for decorative and industrial use, has spent over 284 cores towards various social development projects from its Corporate Social Responsibility (CSR) account. To know more, how much the company spent on CSR in FY 2020-21, Read the detailed report.
Corporate houses spend a huge sum on Corporate Social Responsibility (CSR) for the welfare of workers and local people in the country.
CSR Spending in 2020-21
At Asian Paints, the total amount transferred to the Unspent CSR Account as per Section 135(6) of the Companies Act, 2013 was Rs. 14.78 Crores during the year 2020-21. Total CSR amount spent for the financial year 2020-21 was Rs. 48.20 crores.
Total CSR obligation for the financial year was Rs. 62.95 Crores (2.1% of PAT), includes an amount of Rs. 14.78 crores earmarked for ongoing projects transferred to Unspent CSR Account in terms of Section 135(6) of the Companies Act, 2013, for the Financial Year 2020-21, the company’s annual report said.
Unspent amounts pertaining to ongoing projects have been transferred to Separate CSR Unspent Bank A/c on 30th April, 2021. Excludes an amount of Rs. 14.78 crores earmarked for ongoing projects, out of which Rs. 5.28 crores are with related parties, the report said.
CSR Spending in 2019-20
Last year, an amount of Rs 74.64 crores, which was 2.8 % of PAT, was spent towards various CSR projects in 50 villages of Uttar Pradesh, Haryana, Gujarat, Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu.
CSR in India
In India, Section 135 of the Companies Act, 2013 (‘Act’) mandates every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more, or net profit of Rs. 5 crore or more during the immediately preceding financial year to undertake Corporate Social Responsibility (CSR) activities.
CSR Spending for the last 5 years
2020-21: Rs. 63.00 Cr.
2019-20: Rs. 74.64 Cr.
2018-19: Rs. 52.70 Cr.
2017-18: Rs. 46.51 Cr.
2016-17: Rs 47.84 Cr.
Total: Rs. 284.69 Cr.
CSR a Board driven approach
CSR is a Board driven process and the Board of the company is empowered to plan, decide, execute and monitor the CSR activities of the company based on the recommendation of its CSR Committee.
The meetings of the CSR Committee are also attended by members of the CSR Council of the Company as invitees.
CSR philosophy
The company which has 7,160 permanent employees, in line with the CSR philosophy, undertook several initiatives during the year towards building a sustainable CSR model. Health and hygiene, water management and education have been the thrust areas of CSR focus. While adhering to commitments on the diploma scholarships, maintenance of smart class infrastructure and classroom construction and teacher salaries, the Company has decided to focus more on water and skilling and phase out the education vertical.
CSR is a Journey
“Our Corporate Social Responsibility (CSR) approach is designed to bring about holistic development of communities. We strongly believe that CSR should not be a one-time engagement; rather, it has to bring about a social transformation in the life of our disadvantaged, vulnerable and marginalized stakeholders”, the company said.
All our CSR initiatives are strategically designed and monitored for tangible progress and achievement of targeted outcomes. We proactively bring our employees into the volunteering space, making Asian Paints an integral part of every community that is our neighbour, and our CSR projects deliver significant outcomes, the report said.
The Company’s manufacturing facilities have been engaged in focused initiatives aimed at uplift of the communities residing in the vicinity of its facilities, the company said.
Rainwater recharge
As part of its CSR initiative at Kasna, Uttar Pradesh, the company created rainwater recharge potential by constructing ponds of 7,360 KL and 2,559 KL capacity at Mehpa Jagir, Uttar Pradesh and Pachayatan Uttar Pradesh, respectively. With this initiative, the current capacity of rainwater harvesting supports together more than 30 families living around the village.
Areas of work
The CSR initiatives of Asian Paints aim towards inclusive development of the communities largely around the vicinity of its plants and registered office and at the same time on ensuring environmental protection through a range of structured interventions in the areas of:
(i) Promoting education, including special education and livelihood projects
(ii) Creating employability and enhance dignity of the painter community
(iii) Enabling access to quality, primary healthcare services
(iv) Focus on water conservation, replenishment and recharge and
(v) Disaster relief measures.
Asian Paints CSR projects are championing the causes of skilling India, good health for all and help in the time of emergencies. When Cyclone Fani hit Odisha, the corporation was doling out hygiene and shelter kits to 1,500 families. In the aftermath of the Bihar floods, the CSR team extended a helping hand to 1,200 families in the rural area of Runnisaidpur.
After the Assam floods, they installed water purification units for the families and cleaned up the ponds, wells and hand pumps. After the floods in Khandala and Mysuru, the employees at the Asian Paints factories there helped out those affected by the disaster.
Such instant support is what matters in crises situations. The paint maker is brightening the lives of painters, carpenters, plumbers and truck drivers through CSR programmes like Safar and Colour Academy specially targetted at these groups individually. The upskilling and digital literacy projects are bringing vibrancy into the dark lives of many stray youth.
Interesting Facts
Rs 21,231 crore spent by 21,349 companies on CSR funds in 2019-20
(CopyRight@IndiaCSR)
