Hindustan Unilever Limited (HUL), India’s largest Fast Moving Consumer Goods (FMCG) company, with a heritage stretching over 90 years, has once again demonstrated its commitment to sustainable living. Known for its diverse portfolio of brands and driven by a purpose to make sustainable living commonplace, HUL’s products touch the lives of nine out of ten Indian households. In line with this commitment, HUL has not just met but significantly surpassed its Corporate Social Responsibility (CSR) obligations for the financial year 2022-23.
Demonstrating Dedication to Sustainable Living
Adhering to Section 135 of the Companies Act, HUL was required to spend 2% of its average net profit on CSR activities. The average net profit, as calculated per the Act, amounted to Rs. 10,263.04 Crores, setting the 2% obligation at Rs. 205.26 Crores. However, HUL exhibited its commitment to societal development by spending a total of Rs. 208.32 Crores on CSR, thereby exceeding its mandate.
Also Read: CSR: Hindustan Unilever Spends Rs. 157 Cr On SDGs Projects In FY 2022
Breakdown of CSR Spending
The company allocated Rs. 199.15 Crores directly towards CSR projects. An additional amount of Rs. 7 Crores was transferred to the unspent CSR Account for ongoing projects, making the total amount spent on CSR projects Rs. 206.15 Crores.
Administrative overheads incurred during this financial year amounted to Rs. 1.62 Crores. Additionally, Rs. 0.55 Crores was spent on Impact Assessment, in line with CSR rules. The total expenditure for CSR activities thus stood at Rs. 208.32 Crores for FY 2022-23.
Unspent CSR Funds
An amount of Rs. 201.32 Crores was actually spent during FY 2022-23. The remaining Rs. 7 Crores was moved to the unspent CSR Account for ongoing projects, in accordance with Section 135(6) of the Companies Act. Therefore, the total CSR expenditure for FY 2022-23, including the amount transferred to the unspent account for ongoing projects, was Rs. 208.32 Crores.
Key Financials
| Parameter | Amount (in Rs. Crores) |
|---|---|
| Average net profit (Section 135 Sub-section (5)) | 10,263.04 |
| 2% of average net profit (Section 135 Sub-section (5)) | 205.26 |
| Total CSR obligation for the financial year | 205.26 |
| Amount Spent on CSR Projects | 206.15 |
| Administrative Overheads | 1.62 |
| Expenditure on Impact Assessment | 0.55 |
| Total CSR expenditure for the financial year | 208.32 |
