Total CSR obligation for the financial year amounted Rs. 44.77 Crore.
NEW DELHI (India CSR): Dr. Reddy’s Laboratories Limited has spent Rs 36.08 Crore as part of its Corporate Social Responsibility in the financial year 2021-22, out of which CSR projects of Rs 25.75 Crore were eligible for impact assessment, as per the revised CSR Rules.
Total CSR obligation for the financial year amounted Rs. 44.77 Crore.
The pharma company positively impacted 3,64,332 individuals through CSR initiatives.
In FY2021, the Company spent an amount of over Rs 36.08 against the two percent mandatory CSR Spend requirement of Rs. 34.10 Crore. Thus, an additional amount of Rs 1.97 was available for set-off in FY2022.
Two percent of average net profit of the Company as per Section 135(5) of the Act reported at Rs. 46.75 crore.
Unspent CSR account
The amount includes the unspent CSR amount transferred to the Unspent CSR account. The total amount unspent has been transferred to the Unspent CSR Account on 28 April 2022 The Company has decided not to avail the amount available for set-off from the excess CSR spend of FY2022.
The CSR projects are implemented with the objective to reach out to vulnerable and marginalised communities, including persons with disabilities, the elderly, women and children from the less privileged socio‑economic sections of society.
An impact assessment
Impact Assessment of CSR projects has become mandatory vide MCA’s Circular which revised CSR Rules in January 2021.
As per the revised Rules, every Company having an average CSR obligation of ten crore rupees or more in the three immediately preceding financial years shall undertake an impact assessment, through an independent agency, for their CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study.
In line with the above requirement, Dr. Reddy’s Laboratories Limited engaged Sattva Media and Consulting Private Limited for undertaking an Impact Assessment for eligible CSR Projects.
Patients
It has various patient assistance programs that provide financial assistance to patients who are not in a position to afford high-cost treatments. It also supports them through education, increases in awareness, and adherence to improve their health conditions.
Community
The company implements several CSR programs in the areas of education, skilling and livelihood, health and environmental sustainability through partners and local NGOs for marginalized sections of communities.
CSR Governance
The CSR Committee met three times during the year May 13, 2021, October 28, 2021, and January 27, 2022. The head of CSR officiates as the Secretary of the Committee. During the year, the Board, on the recommendation of the CSR Committee, approved revisions to the CSR Policy to align the policy with the revised provisions of the Act, in this regard.
The Corporate Social Responsibility (CSR) Committee of the Board consists of three Directors, including two Executive Directors. The Chairman is an Independent Director as defined under Indian laws, Listing Regulations and the New York Stock Exchange Corporate Governance Guidelines. The Committee operates under a written charter adopted by the Board of Directors and has been vested with all the powers necessary to effectively discharge its responsibilities.
CSR Performance in 2020-21
The multinational pharmaceutical company has spent a whopping sum of Rs. 36.08 core on various Corporate Social Responsibility (CSR) projects in the financial year 2020-21. The average net profit of the company for the past three years stood at Rs. 1705.02 crore. Thus, its mandatory CSR obligation as per Section 135(5) of the Act, calculated as 2 per cent of the average net profit amounted to Rs. 34.10 crore. The company however, went a step ahead and spent Rs. 36.08 crore, which is Rs. 1.98 crore over and above its CSR obligation. The total amount spent on its CSR was is 2.12 per cent of the average net profits of the company made during the three preceding financial years. In FY 2020, Dr. Reddy’s Laboratories has contributed Rs. 275.3 million (Rs. 27.53 cr) for community development under Corporate Social Responsibility (CSR) mandate. It is 2.25% of the average net profi ts of the company made during the immediately three preceding financial years.
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