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Home Corporate Social Responsibility

Bajaj Auto Reports Rs. 105 Cr Unspent CSR Amount Despite Significant Spending

Bajaj Auto Limited’s report on the unspent CSR amount underscores its dedication to impactful and sustainable CSR initiatives.

India CSR by India CSR
June 26, 2024
in Corporate Social Responsibility
Reading Time: 4 mins read
Corporate Social Responsibility (CSR) at Bajaj Auto - 2023-24

Niraj R. Bajaj Chairman BAJAJ India CSR

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While the unspent amount of ₹105.87 crore may seem significant, it reflects the company’s strategic planning and long-term commitment to social responsibility.

MUMBAI (India CSR): Despite significant spending on Corporate Social Responsibility (CSR) initiatives, Bajaj Auto Limited has reported an unspent CSR amount of ₹105.87 crore for the financial year 2023-24. This substantial figure highlights the challenges and complexities involved in CSR execution, even for a company with a robust social responsibility framework.

Breakdown of CSR Expenditure

For the financial year 2023-24, Bajaj Auto Limited allocated a total of ₹25.85 crore towards various CSR activities.

This expenditure included:

  • CSR Projects: ₹20.32 crore was directed towards ongoing and other CSR projects, focusing on areas such as skill development, education, environmental sustainability, and health.
  • Administrative Overheads: ₹5.53 crore was spent on administrative costs necessary for the implementation and monitoring of CSR activities.
  • Impact Assessment: No funds were allocated for impact assessment during this period.

Total Unspent Amount

Despite these substantial expenditures, the company reported an unspent CSR amount of ₹105.87 crore. This unspent amount was transferred to the Unspent CSR Account on April 15, 2024, in compliance with section 135(6) of the Companies Act, 2013. There was no transfer to any fund specified under Schedule VII, as per the second proviso to section 135(5).

Reasons for Unspent Amount

The unspent amount can be attributed to several factors:

  • Project Mode CSR Activities: Many of Bajaj Auto Limited’s CSR projects are ongoing and span multiple financial years. The unspent funds are often earmarked for these long-term initiatives.
  • Stringent Compliance: Ensuring compliance with the evolving regulatory framework can delay the deployment of funds. The company’s adherence to strict guidelines ensures transparency and accountability, but it may also result in slower disbursement of funds.
  • Strategic Allocation: Bajaj Auto Limited strategically allocates funds to ensure the sustainability and impact of its CSR initiatives. This careful planning sometimes results in funds being carried over to the next financial year.

CSR Initiatives: ‘Bajaj Beyond’

Bajaj Auto Limited’s CSR activities, under the ‘Bajaj Beyond’ program, emphasize sustainable development and social empowerment. Key initiatives include:

  • Skill Development: Programs like Bajaj Engineering Skills Training (BEST) and Bajaj Manufacturing Systems (BMS) Certification aim to equip the youth with skills necessary for employment and entrepreneurship.
  • Education and Health: The company invests in educational and health initiatives, recognizing their importance in societal growth.
  • Environmental Sustainability: Projects focused on environmental conservation to promote balanced development with minimal ecological impact.

Commitment and Compliance

The Chief Financial Officer of Bajaj Auto Limited has certified that the funds disbursed were utilized for their intended purposes, in accordance with the approvals from the Board. The company remains committed to its CSR obligations, ensuring that the funds are used effectively to maximize social impact.

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Key Facts Table: CSR Spending

CategoryDetails
Total CSR Expenditure (2023-24)₹25.85 crore
Amount Spent on CSR Projects₹20.32 crore
Amount Spent on Administrative Overheads₹5.53 crore
Amount Spent on Impact AssessmentNil
Total Unspent CSR Amount₹105.87 crore
Date of Transfer to Unspent CSR AccountApril 15, 2024
Transferred to Funds under Schedule VIINil
Preceding FY 2021-22 Unspent CSR₹11.78 crore
Preceding FY 2022-23 Unspent CSR₹46.48 crore
Compliance CertificationCertified by CFO
Key CSR InitiativesSkill development, education, health, environmental sustainability
CSR ProgramBajaj Beyond

Also Read

Corporate Social Responsibility (CSR) at Bajaj Auto – 2023-24

(India CSR)

Tags: Bajaj Auto LimitedCSR of Bajaj Auto

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