Grasim Industries Limited has spent Rs. 58.98 Crore during FY 2019-20 on Corporate Social Responsibility (CSR) as percentage which is more than 2% of the Average Profit after taxes of the Company in the previous three financial years.
Grasim Industries Limited, part of the Aditya Birla Group, during the financial year 2019-20, has spent an amount of Rs 58.98 Crore on CSR activities, which is more than 2% of the average net profits of the last three years for the purposes of CSR. Company spent mainly on education, health care, environment and livelihood, rural development projects, social empowerment, etc., and to bring about social change by advocating and supporting various social campaigns and programmes, the company’s recent annual report said.
Company has conducted impact assessment of its CSR initiatives and has seen positive outcomes and benefits for the people in and around the Company’s plants, the company said.
In terms of the provisions of section 135 of the Companies Act, 2013, (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors of the Company has a Corporate Social Responsibility (CSR) Committee, which is chaired by Rajashree Birla. The other Members of the Committee are Anita Ramachandran, Independent Director, Shailendra K. Jain, Non-Executive Director and Dilip Gaur, Managing Director. Dr. Pragnya Ram, Group Executive President, CSR, is a permanent invitee to the Committee.
The CSR Committee comprises of 2 Non-Executive Directors, 1 Independent Director and 1 Executive Director. During the year, 2 CSR Committee meetings were held on 24th October 2019 and 16th March 2020. The recommendations of CSR Committee have been accepted by the Board.
Average net profit of the Company for last three financial years: Rs. 2,421.32 Crore
Prescribed CSR Expenditure: (two percent of the amount as in Item 3 above): Rs. 48.43 Crore
Total amount to be spent for the financial year: Rs. 48.43 Crore
Total amount spent for the financial year: Rs. 58.98 Crore
Amount unspent, if any : Nil
The Company’s social projects are carried on under the aegis of the Aditya Birla Centre for Community Initiatives and Rural Development. Collaborative partnerships are formed with governments, district authorities, village panchayats, NGOs and like-minded stakeholders. It also collaborates with District Authorities, Village Panchayats, NGOs and like-minded stakeholders for its CSR initiatives. Most of the Company’s initiatives are carried out under private partnership model.
As per Section 135 of the Indian Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit computed as mandated by the Act for the immediately preceding three financial years on CSR activities. The Act prescribes that every company having a net worth of Rs. 500 crore or more, or turnover of Rs. 1,000 crore or more, or a net profit of Rs. 5 crore or more during any financial year shall ensure that it spends, in every financial year, at least 2% of the average net profits computed as mandated by the Act, in pursuance of its CSR Policy.