During the year 2019-20, UPL Limited, 5th Largest crop protection company globally, headquartered in India (Mumbai) has invested Rs. 16 Crore to community development projects have positively impacted 6.7 lakh lives across India, the company’s Annual Report 2019-20 said.
The Company is required to spend Rs. 9 crores towards CSR as per prescribed CSR Expenditure (2% of the profit). UPL spent Rs. 16 crores (Rs. 18.08 Cr in FY 2018-19 : 4.44% of Profit after Tax) in the reviewed financial year, which is 3.54 per cent of its profit for the year.Average net profit of the Company for last three financial years stood at Rs 470 crore during the year.
“Our approaches of CSR initiatives emphasis on community participation in all stages of the project cycle. All our interventions focus on the needs, strengths and growth of the community.”, the report said.
At UPL, our citizenship interventions are not restricted to the upliftment of only our neighbouring communities, as we drive initiatives that address key priorities for nations, the report said.
At present, two core UPL values ‘Always Human’ and ‘Open Hearts’ are guiding force of our CSR initiatives, it said.
CSR commitment and interventions cater all the segment of the society and have been classified in 4 focus areas, they are:
• Institutions for Nation Buildings
• Sustainable Livelihoods
• Nature Conservation
• Local and National Needs
Company has a dedicated in-house experienced CSR team/UPL promoted foundation to make the blueprint and execute the CSR programmes. UPL also engages with third parties, Government organisations, NGO’s and CBO’s to perform specific programmes based on community needs and requirements.
As per Section 135 of the Companies Act, 2013, the Board has constituted a Corporate Social Responsibility Committee (CSR) which comprises of three non-executive directors including one independent director. Sandra Shroff is the Chairperson and has Vikram Shroff (non-executive director) and Pradeep Goyal (Independent Director) as other members. The composition of the Committee is in compliance with the Act. CSR Committee comprises two Promoter Directors and one Independent Director. The Committee is the foundation of all our CSR programmes, right from making the blueprints to executing them, the report said. During the year under review, the Committee duly met on February 7, 2020 and the meeting was attended by all the Members of the Committee. The executive of the CSR function is invited to the meeting.
Third-party impact assessment
The company conducts third-party impact assessment for all the CSR initiatives to measure the long-term impact of the interventions in a period of three years. Lately, the company has conducted the study in 2016 where the results were very encouraging both at the macro and micro level.
At UPL, we believe in all-inclusive and sustainable growth of society. This philosophy has always been the guiding force in all our community interventions. Not only all our CSR initiatives are determined with the trust that humankind is one community, where each member is responsible for the wellbeing of the other, but also our core businesses are all about connecting with people, in a human way, showing respect, demonstrating trust, celebrating diversity, favoring warmth over cool. We see the value in human connectivity and how it creates new opportunities for everyone., the company said.
India’s CSR Law
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.