Report highlights planned use of unspent CSR funds for healthcare, education, and rural development in Andhra Pradesh
NEW DELHI (India CSR): Avanti Feeds Limited, one of India’s leading aquaculture companies, has reported an unspent Corporate Social Responsibility (CSR) amount of Rs 3.50 crore for the financial year 2024–25. According to the company’s annual report, this amount has not been left idle but has been earmarked for ongoing multi-year development projects, mainly in Andhra Pradesh.
The disclosure comes as part of the company’s statutory CSR reporting under the Companies Act, 2013. The report explains that while a portion of the CSR obligation was spent during the year, the remaining amount has been transferred to a designated account for future use in approved projects.
The development reflects a growing trend among companies to plan long-term social investments rather than focusing only on short-term spending within a single financial year.
CSR Obligation and Spending Breakdown
According to the company’s annual report, Avanti Feeds Limited had a CSR obligation of Rs 5.68 crore for FY2025. This obligation is calculated as 2% of the company’s average net profits over the previous three financial years, in line with legal requirements.
Out of this total, the company spent approximately Rs 2.18 crore during the year on various CSR activities. The remaining Rs 3.50 crore was not spent within the financial year and has been classified as unspent CSR funds.
However, the report clearly states that this amount relates to ongoing projects and has been transferred to a separate “Unspent CSR Account,” as required under Section 135(6) of the Companies Act. This ensures that the funds remain reserved for specific projects and are not diverted.
The annual report highlights that such transfers are part of compliance and planning, especially for projects that require more than one year to complete.
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Why CSR Funds Remain Unspent
The presence of unspent CSR funds often raises questions about implementation delays. However, in this case, the company has clarified that the unspent amount is linked to ongoing infrastructure and development projects.
According to the report, many CSR initiatives—especially those related to construction, education, and healthcare—require longer timelines. These cannot always be completed within a single financial year.
The report highlights that transferring funds to the Unspent CSR Account allows the company to continue these projects without interruption. It also ensures accountability, as the funds must be used within a defined period.
This approach reflects a shift from one-time CSR activities to sustained development efforts.
Focus on Healthcare Infrastructure
A major portion of the unspent CSR funds has been allocated to healthcare-related projects. According to the company’s annual report, one of the key initiatives is the development of medical infrastructure in rural areas.
The report states that funds are being used for the construction and expansion of healthcare facilities, particularly in and around Kovvur in Andhra Pradesh. These projects aim to improve access to quality medical services in underserved regions.
The company has already been involved in healthcare initiatives through diagnostic centres and health camps. The ongoing projects are expected to expand these efforts into more comprehensive medical services.
The annual report highlights that such investments are designed to address long-standing gaps in rural healthcare.
Investment in Education and Skill Development
Education is another major area where the unspent CSR funds will be utilized. According to the report, a portion of the funds has been set aside for the expansion of educational institutions managed by associated trusts.
The annual report states that the company is supporting the development of a degree and postgraduate college in Kovvur. This includes the construction of additional infrastructure to accommodate more students.
The report highlights that the initiative is aimed at providing affordable higher education to students from rural and economically weaker backgrounds.
In addition to formal education, the company has also been involved in skill development programs. The report mentions training initiatives for farmers and youth, particularly in aquaculture practices.
These programs are expected to continue as part of the broader CSR strategy.
Rural Development and Community Infrastructure
The remaining portion of the unspent CSR funds has been allocated to rural development projects. According to the annual report, these include initiatives related to water, sanitation, and infrastructure.
The report highlights that projects such as water treatment facilities, sanitation systems, and rural infrastructure improvements are being implemented in selected villages.
There is also a focus on supporting communities affected by natural challenges. The report mentions efforts to improve resilience in coastal and farming regions, including support for infrastructure that can withstand extreme weather conditions.
These initiatives are aimed at improving the overall quality of life in rural areas.
Group-Level CSR Overview
The annual report also provides a broader view of CSR spending at the group level. When subsidiaries are included, the total CSR obligation for FY2025 rises to Rs 7.83 crore.
Out of this, the group spent around Rs 4.33 crore during the year. The unspent amount at the group level remains the same at Rs 3.50 crore, indicating that the pending projects are primarily being handled by the parent company, Avanti Feeds Limited.
The report suggests that subsidiaries are more focused on smaller, immediate-impact initiatives, while the parent company is leading larger infrastructure projects.
Governance and Monitoring of CSR Funds
The company’s annual report highlights the role of the CSR Committee in overseeing the planning and implementation of CSR activities. The committee met multiple times during the year to review progress and ensure compliance.
According to the report, the committee is responsible for identifying priority areas, approving projects, and monitoring the use of funds.
The report also mentions that unspent CSR funds from previous years are being tracked and utilized as per regulatory guidelines. This ensures continuity in project execution.
Transparency and accountability are key aspects of the company’s CSR approach, as reflected in its detailed disclosures.
A Long-Term Approach to Social Responsibility
The case of Avanti Feeds Limited shows that unspent CSR funds do not always indicate inaction. Instead, they can reflect a structured and long-term approach to social development.
According to the company’s annual report, the Rs 3.50 crore unspent amount is part of a planned strategy to support ongoing projects that require sustained funding.
The focus on healthcare, education, and rural infrastructure suggests that the company is prioritizing areas with long-term impact.
For communities in Andhra Pradesh, these projects are expected to bring lasting benefits once completed.
Here is a Key Facts Table summarizing the CSR Unspent Funds details of Avanti Feeds Limited for FY2025:
Key Facts Table: Avanti Feeds Limited CSR Report FY2025
| Particulars | Details |
|---|---|
| Company Name | Avanti Feeds Limited |
| Financial Year | 2024–25 |
| CSR Obligation | Rs 5.68 crore |
| CSR Amount Spent | Rs 2.18 crore |
| CSR Unspent Amount | Rs 3.50 crore |
| Reason for Unspent Amount | Funds allocated to ongoing multi-year projects |
| Legal Compliance | Transferred to Unspent CSR Account under Section 135(6) |
| Key Focus Areas | Healthcare, Education, Rural Development |
| Major Healthcare Initiative | Development of healthcare facilities in Andhra Pradesh |
| Education Initiative | Expansion of Degree & PG College in Kovvur |
| Rural Development Projects | Water treatment, sanitation, infrastructure improvements |
| Group CSR Obligation (Total) | Rs 7.83 crore |
| Group CSR Spending | Rs 4.33 crore |
| CSR Governance | Overseen by CSR Committee with regular monitoring |
| Nature of CSR Strategy | Long-term, project-based approach |
You Learn
Avanti Feeds Limited’s CSR report for FY2025 presents a clear picture of how the company is managing its social responsibility commitments. While Rs 3.50 crore remains unspent for the year, the amount has been formally allocated for ongoing projects and secured in a dedicated account.
According to the annual report, this approach ensures that large-scale initiatives receive the time and funding they need for completion. It also aligns with legal provisions governing CSR spending in India.
As companies continue to refine their CSR strategies, the emphasis is increasingly shifting towards long-term impact rather than immediate spending. Avanti Feeds Limited’s latest report reflects this evolving approach, with a focus on sustained development in key sectors.
The coming years will show how these planned investments translate into measurable social outcomes on the ground.
Frequently Asked Questions (FAQs)
1. How much CSR amount did Avanti Feeds leave unspent in FY2025?
Avanti Feeds Limited reported an unspent CSR amount of Rs 3.50 crore for the financial year 2024–25.
2. Why was the CSR amount not fully spent?
According to the annual report, the unspent amount is linked to ongoing projects that require more time to complete.
3. Where has the unspent CSR money been kept?
The company has transferred the amount to a dedicated “Unspent CSR Account” as per legal requirements.
4. What are the main areas where the CSR funds will be used?
The funds are planned for healthcare, education, and rural development projects.
5. Is keeping CSR funds unspent allowed under law?
Yes, companies can keep funds unspent if they are allocated to ongoing projects and transferred to a special account within the prescribed time.
6. Will the unspent CSR amount be used in future years?
Yes, the report states that the funds will be used for completing approved projects in the coming years.
(India CSR)
