By Rusen Kumar
MUMBAI: Asian Paints Limited (APL), Asia’s second largest paint company, aiming to become one of the top five decorative coatings companies world-wide, has spent Rs. 34.44 crores in corporate social responsibility (CSR) in the financial year 2015-16, which is 2.16% of its Profit After Tax (PAT), reflecting in the Annual Report of 2015-16.
According to the Report, CSR expenditure incurred by the APL during the reviewed year was Rs. 34.44 cores which is higher than the statuary requirement of 2% of the average profit for the last three financial years, in compliance with the Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility) Rules, 2014.
“Company is committed to the sustainable development, inclusive growth and bringing about a perceptible change in the lives of communities on the embedded tenets of trust, fairness and caring.”, report said.
The priority and favourite area of CSR of the APL is skilling the people. It has spent Rs.18 Crores of its CSR fund towards vocational training and skill development programmes.
The CSR initiatives were under the thrust areas of health, hygiene, education, water management and enhancement of vocational skills and training.
As per the report, people of more than 100 villages and certain cities in the state of Uttar Pradesh, Haryana, Gujarat, Andhra Pradesh, Maharashtra and Tamil Nadu were benefited by the social initiatives conducted by APL.
In the Message to the shareholders, Ashwin Choksi, Chairman, Asian Paint said, “Your Company is also committed to its social responsibility agenda and contribute meaningfully to the community that it operates in. Your Company continues to focus in the areas of Education, Health & Hygiene and Water Management to enhance the livelihood of the people in its operating communities.”
CSR approach which focuses on the development of the communities around the manufacturing plants, has also developed innovative programmes that leverage capacities as paint manufacturer and home improvement service provide to enhance livelihoods of underserved communities through vocational training and skill development programmes.
The composition of the CSR Committee is in alignment with provision of Section 135 of Company Act, 2013. The committee met 4 times during the financial year 2015-16. Malav Dani, Non-Executive Director is the Chairman of the CSR Committee.
“The CSR Committee meets every quarter to review implementation of the projects/programmes/activities to be undertaken in the field of CSR.”, report said.
CSR Expenditure for the FY 2015-16
|SL. No.||Area of Work||Amount Spent (Rs in Crores)|
|4.||Health and Hygiene||4.18|
Asian Paint has partnered with National Skill Development Corporation (NSDC) for undertaking a painter skill development project and has granted a financial assistance of Rs 0.31 Crores.
Asian Paints has adopted CSR Policy (Approved by the Board of Directors on 22nd July, 2014) which focuses on four thrust areas including, education, skill development, and healthcare/hygiene and water management.
Company has released its first Sustainability Report 2014-15 last year, wherein disclosures on environmental performance have been detailed in. Company will also publish the same for the year 2015-16 going forward as well with sufficient information around all aspects of environmental health, safety performance and activities.
The Asian Paints Colour Academy
In keeping with national developmental goals on skills development, APL is providing vocational training to improve skills in the unorganised sector.
Asian Paints has 11 permanent Colour Academies ‘The Asian Paints Colour Academy’ in Mumbai, New Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, Cochin and Gorakhpur and 10 mobile Colour Academies covering various states and providing vocational training in small towns. During the reviewed year, Colour Academies have conducted trainings where more than 15,000 participants have come for multiple training modules. Asian Paints has partnered with the National Skills Development Corporation (NSDC) to strengthen the delivery of this programme to both unskilled and semi-skilled individuals. Colour Academy is transforming itself into a vocational training setup delivered through a collection of modules – which together enhance specific skills.
Leading organizations partnered to implement the various development project includes: Enable Heath Society, Aga Khan Rural Support Programme, Abhivyakti Foundation, Alakeshwar Industrial Development Society, Akash Ganga Trust, Bihang Welfare Association, Child Survival India, Deepalaya, Forum For Organized Resource Conservation & Enhancement, Helpage India, International Crops Research Institute for the Semi-Arid Tropics, Indian Green Service, Isha Foundation, Kaka Ba and Kaka Budh Public Charitable Trust, Kutuhal, Magic Bus, NIIT Foundation, Preface for Literacy Education and Aid, Ankleshwaar Rotary Welfare Trust, Samawedana, Sevalaya, Sri Balaji Enterprises, Vanarai, Water Shed Organization Trust.
The Profit After Tax for the year is Rs. 1,597.43 crores as against of Rs. 1,327 crores in the previous year – a growth of 20.3%. The growth in profit is mainly driven by increase in the net revenue from operations and softening of input prices during the year. Total turnover for the year is Rs 14,750.74 crores.
Asian Paints is India’s leading paint company and is ranked among the top ten Decorative coatings companies in the world with a consolidated turnover of Rs 15,852.2 Crores (158.5 billion). Asian Paints along with its subsidiaries have operations in 19 countries across the world with 26 paint manufacturing facilities, servicing consumers in over 65 countries through Berger International, SCIB Paints – Egypt, Asian Paints, Apco Coatings, Taubmans and Kadisco. Asian Paints has also marked its foray into the Home Improvement and Décor space in India with the acquisition of Sleek group – a kitchen solutions provider and Ess Ess Bathroom Products – a prominent player in the bath and wash segment in India.
Additional Reading and Source:
- Aisan Paints Limited, Annual Report 2015-16
- Asian Paints, CSR Policy
(About the author: Rusen Kumar is the Editor at India CSR. He can be reached at email@example.com or 9981099555)