Ipca Laboratories CSR Spending Report of Rs. 20.29 Crores for FY 2023-24

NEW DELHI (India CSR): Ipca Laboratories, a leading pharmaceutical company, views corporate social responsibility (CSR) as a cornerstone of its mission to foster a healthier, more equitable society. In the financial year 2023-24, Ipca invested Rs 20.29 crores in impactful CSR initiatives, reaching over 4.5 million beneficiaries across India. From building medical colleges to promoting environmental sustainability, Ipca’s efforts reflect its dedication to good corporate citizenship. This comprehensive report details the company’s CSR spending, governance, and transformative projects, showcasing its commitment to ethical responsibility and community welfare.

CSR Obligation and Financial Overview

Fulfilling Statutory Requirements

Under Section 135 of the Companies Act, 2013, Ipca Laboratories was mandated to spend Rs 21.36 crores on CSR activities, calculated as 2% of its average net profit of Rs 1067.95 crores. The company allocated Rs 20.29 crores across various initiatives, with the remaining Rs 1.07 crores transferred to the “Ipca Labs Limited Unspent CSR Account” on April 29, 2024, for ongoing projects. This disciplined approach ensured compliance while maximizing social impact. The company’s turnover for the year was Rs 6277.75 crores, with a net worth of Rs 6348.71 crores, underscoring its financial capacity to drive meaningful CSR programs.

Key Facts Table: CSR Spending Details – 2023-24

Governance and CSR Policy

Robust CSR Committee Leadership

Ipca’s CSR Committee, chaired by Independent Director Kamal Kishore Seth, includes Executive Chairman Premchand Godha, Managing Director Ajit Kumar Jain, and Executive Director Prashant Godha. The committee met twice in 2023-24, with full attendance, to formulate and monitor the CSR policy, recommend expenditure, and ensure alignment with Ipca’s vision. The CSR policy, available at Ipca CSR Policy, emphasizes patient health, environmental sustainability, and community development.

CSR Policy Framework

Ipca’s CSR policy integrates ethical standards across its operations, from research and development to marketing. The company engages stakeholders—healthcare professionals, investors, customers, NGOs, and suppliers—to address key responsibility issues. Initiatives focus on micro-level impacts, including employee safety, public health, environmental nurturing, and sustainable community building, ensuring a holistic approach to social responsibility.

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Major CSR Projects and Investments

1. Healthcare Initiatives

Ipca made significant strides in healthcare, investing Rs 3.50 crores in a Medical College and Research Centre in Solapur through the M.M. Patel Public Charitable Trust. Additionally, Rs 6.13 crores supported the distribution of improved cookstoves in Assam via SEWA, promoting healthier living and reducing environmental impact. These projects, part of a Rs 4.09 crore investment in healthcare and sanitation, benefited 258,529 individuals, with 38% from vulnerable groups.

2. Education and Skill Development

Education was a primary focus, with Rs 13.25 crores allocated to projects promoting literacy, vocational training, and skill enhancement. Key contributions included Rs 2.20 crores for education, healthcare, and rural development across Maharashtra, Sikkim, Uttarakhand, Madhya Pradesh, Dadra & Nagar Haveli, and Gujarat, and Rs 9.56 crores through the Ipca Foundation for similar initiatives across multiple states. Trusts like Shirpur Education Society (Rs 1.90 crores) and Rashtrasant Janardhan Swami Foundation (Rs 1.00 crore) facilitated these efforts, impacting 3,233,404 individuals, 100% of whom were from marginalized communities.

3. Environmental Sustainability

Ipca invested Rs 2.97 crores in environmental sustainability, including Rs 2.10 crores for the Cauvery Calling tree plantation project with Isha Outreach and Rs 1.10 crores for the Amrit Sarovar project in Madhya Pradesh under MGNREGS. These initiatives, alongside a Rs 2.75 crore community park in Dewas, benefited 919,214 individuals, with 49% from vulnerable groups, reinforcing Ipca’s commitment to ecological balance.

4. Rural Development and Heritage

Rural development projects received Rs 0.33 crores, impacting 505,449 individuals, 80% from marginalized communities. Additionally, Rs 0.24 crores supported national heritage protection, reaching 192,367 people. Other efforts included Rs 0.09 crores for rural sports (320 beneficiaries, 84% from vulnerable groups) and Rs 0.01 crores for gender equality, empowering 4,500 women.

5. Support for Armed Forces Veterans

Ipca allocated Rs 0.15 crores to support armed forces veterans, benefiting 2,000 individuals. This initiative reflects the company’s commitment to honoring those who serve the nation.

Major CSR Projects Supported in 2023-24

Impact Assessment and Administrative Efficiency

1. Evaluating Outcomes

Ipca conducted impact assessments for key projects, spending Rs 0.07 crores to evaluate their effectiveness. Assessed projects included Amrit Sarovar, Cauvery Calling, the Dewas Community Park, the Solapur Medical College, and Assam’s cookstove distribution. These assessments ensured that CSR initiatives delivered tangible benefits to communities.

2. Administrative Overheads

Administrative expenses totaled Rs 0.23 crores, including Rs 0.16 crores for overheads and Rs 0.07 crores for impact assessments. This efficient resource allocation maximized the funds available for direct project implementation.

Beneficiary Reach and Social Equity

Transforming Lives Nationwide

Ipca’s CSR initiatives reached over 4.5 million beneficiaries, with a strong focus on vulnerable and marginalized groups. Education projects empowered 3,233,404 individuals (100% marginalized), while environmental sustainability initiatives benefited 919,214 people (49% marginalized). Rural development and healthcare programs supported 505,449 (80% marginalized) and 258,529 (38% marginalized) individuals, respectively. Gender equality initiatives reached 4,500 women (100% marginalized), and heritage protection efforts impacted 192,367 people (27% marginalized).

Key Beneficiary Statistics

• Education and Skill Development: 3,233,404 beneficiaries, 100% from vulnerable groups.
• Environmental Sustainability: 919,214 beneficiaries, 49% from vulnerable groups.
• Rural Development: 505,449 beneficiaries, 80% from vulnerable groups.
• Healthcare and Sanitation: 258,529 beneficiaries, 38% from vulnerable groups.
• National Heritage: 192,367 beneficiaries, 27% from vulnerable groups.
• Gender Equality: 4,500 beneficiaries, 100% from vulnerable groups.
• Sports: 320 beneficiaries, 84% from vulnerable groups.
• Armed Forces Veterans: 2,000 beneficiaries.

Financial Transparency and Unspent Funds

CSR Expenditure Breakdown

The total CSR expenditure of Rs 20.29 crores was distributed as follows:

• Education and Skill Development: Rs 13.25 crores (₹12.18 crores paid, ₹1.07 crores unspent).
• Healthcare and Sanitation: Rs 4.09 crores.
• Environmental Sustainability: Rs 2.97 crores.
• Rural Development: Rs 0.33 crores.
• National Heritage: Rs 0.24 crores.
• Armed Forces Veterans: Rs 0.15 crores.
• Sports: Rs 0.09 crores.
• Gender Equality: Rs 0.01 crores.
• Administrative Expenses: Rs 0.23 crores.

Unspent Funds Management

The unspent Rs 1.07 crores was deposited into a special bank account on April 29, 2024, for ongoing projects. In the preceding three years, Ipca cleared unspent amounts of Rs 2.45 crores (2022-23) and Rs 1.82 crores (2021-22), demonstrating a consistent effort to fulfill CSR commitments.

Comparison with Previous Year

In 2022-23, Ipca spent Rs 19.45 crores against a Rs 21.88 crore obligation, with Rs 2.43 crores unspent. The 2023-24 expenditure of Rs 20.29 crores reflects a slight increase, with education spending rising from Rs 9.96 crores to Rs 13.25 crores, while rural development decreased from Rs 4.05 crores to Rs 0.33 crores. This shift highlights Ipca’s strategic focus on education and healthcare in 2023-24.

(India CSR)