ITC Ltd has spent Rs 353.46 cr on Corporate Social Responsibility (CSR) during FY 2020-21, which is 2.71% of Profit after taxes.
Expenditure incurred under Section 135 of the Companies Act, 2013 on Corporate Social Responsibility (CSR) activities – Rs353.46 Crores (2020 - Rs 326.49 Crores) comprising employee benefits expense of Rs.14.96 Crores (2020 - Rs. 9.69 Crores) and other expenses of Rs. 338.50 Crores (2020 - Rs. 316.80 Crores), of which Rs.11.94 Crores (2020 - Rs. 26.66 Crores) is accrued for payment as on 31st March, 2021.
Such CSR expenditure of Rs. 353.46 Crores (2020 - Rs 326.49 Crores) excludes Rs.5.72 Crores (2020 -Rs 11.83 Crores) being the excess of expenditure of salaries of CSR personnel and administrative expenses over the limit of 5% of total CSR expenditure laid down under Rule 7(1) of the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 for such expenses.
A total of Rs. 182 crores were spent by ITC and its Trusts on COVID-19 related relief and assistance. Cash contributions were made to the PM CARES Fund and to 17 state governments and various NGOs engaged in direct relief work with migrant workers.
In addition, direct action by the Company included distribution of dry rations, cooked food and personal hygiene products to district authorities, other Government bodies and NGOs of 25 states.
Covid Response
The along with ITC Education and Health Care Trust and ITC Rural Development Trust had set up a COVID Contingency Fund of Rs 215 crores to help the victims
of the COVID-19 pandemic. A large part of the Fund has been utilised towards providing relief to the poor and vulnerable sections of society who are facing severe disruptions to their livelihoods
CSR Governance
The CSR and Sustainability Committee presently comprises the Chairman of the Company and five Non-Executive Directors, three of whom are Independent Directors. The Chairman of the Company is the Chairman of the Committee. The Company Secretary is the Secretary to the Committee.
Meetings
During the financial year ended 31st March, 2021, three meetings of the CSR and Sustainability Committee were held.
Key elements
The key elements of the Company’s CSR interventions are to:
- deepen engagement in identified core operational geographies to promote holistic development and design interventions in order to respond to the most significant development challenges of the Company’s stakeholder groups.
- strengthen capabilities of Non-Government Organisations (NGOs)/Community Based Organisations (CBOs) in all the project catchments for participatory planning, ownership and sustainability of interventions.
- drive the development agenda in a manner that benefits the poor and marginalised communities in the factory and agri-catchments, thereby significantly improving Human Development Indices (HDI).
- ensure behavioural change through focus on demand generation for all interventions, thereby enabling participation, contribution and asset creation for the community.
- strive for scale by leveraging government partnerships and accessing the most contemporary knowledge / technical know-how.
