Pidilite’s over Rs 27.70 crores spending surpasses the prescribed CSR budget in FY 21
NEW DELHI (India CSR): Gross amount required to be spent by Pidilite Industries Ltd during the year 2020-21 was Rs. 25.88 crores (Rs. 24.81 crores for the year ended 31st March 2020).
CSR spending for the year was Rs. 27.70 crores, which is 2.56% of the average net profit for the last 3 financial years. The excess amount spent for the financial year reported was Rs. 1.82 Crores.
Also Read: Pidilite Industries spends more than 2% of the average net profit on CSR expenses in 2020
Pidilite Industries Ltd spent 2.56% on Corporate Social Responsibility (CSR) as a percentage of profit after tax (PAT) of Rs 1,081.46 crores.
The Company has been supporting Education, Healthcare, Agriculture and Horticulture, Animal Husbandry initiatives, Rural Development, Water Resources Management, Sanitation, Initiatives for Women, Farmer Producer Organisation, Skill Development, Swachhta Initiative, Khadi Initiative, etc.
As per Section 135 of the Companies Act, 2013, Pidilite Industries Ltd, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.
The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.
Also Read: Pidilite pledges Rs. 25 crore towards Covid-19 relief funds
A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.
As Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 came into force w.e.f. 22nd January 2021.
Companies qualify for CSR
To do business in India, any company has to get itself registered according to the Companies Act. But not every company in India comes under CSR. Small companies with very limited earnings are not obliged to spend on CSR. Corporate Social Responsibility has become mandatory through the provisions under Section 135 of the Companies Act, 2013. Every company that is private limited or public limited has a net worth of Rs. 500 crores or more, a turnover of Rs. 1,000 crores or more, or a net profit of Rs. 5 crores or more during any financial year has to spend a minimum 2% of the average net profits made during the 3 immediately preceding financial years.
Also Read: Pidilite – India CSR Network
