MUMBAI (India CSR): In alignment with Section 135(5) of the Companies Act, 2013, ITC Limited was required to allocate ₹403.47 crores for corporate social responsibility (CSR) activities, representing 2% of its average net profits. Demonstrating its commitment to social and environmental welfare, ITC exceeded this mandate by spending ₹404.05 crores during the fiscal year 2023-24. This substantial investment underscores the company’s dedication to fostering sustainable development and enhancing community well-being across India.

Meeting and Exceeding CSR Obligations

Mandated and Actual CSR Spending

For the fiscal year 2023-24, ITC Limited’s required CSR expenditure was calculated at ₹403.47 crores, based on 2% of the company’s average net profits. The company not only met this obligation but surpassed it, with a total CSR spend of ₹404.05 crores. This includes employee benefits expenses of ₹15.52 crores and other expenses amounting to ₹388.53 crores. Additionally, ₹30.60 crores of this expenditure is accrued for payment as of 31st March 2024. The company also reported an excess amount of ₹1.93 crores available for set-off in succeeding financial years, reflecting its proactive approach to CSR spending.

Mandated and Actual CSR Spending

Description	Amount (₹ Crores)
Required CSR Spending	403.47
Actual CSR Spending	404.05
Employee Benefits Expense	15.52
Other Expenses	388.53
Accrued for Payment (as of 31st March 2024)	30.60
Excess Amount Available for Set-off in Future Years	1.93

Strategic Focus Areas for CSR Initiatives

Key Areas of Impact

ITC Limited’s CSR efforts cover a broad spectrum of initiatives designed to address critical social and environmental challenges. The company’s strategic focus areas include:

Poverty Alleviation: Initiatives aimed at reducing poverty and improving living standards for marginalized communities.
Education and Skill Development: Programs to enhance educational opportunities and vocational training, particularly for underprivileged populations.
Healthcare: Efforts to promote preventive healthcare, sanitation, and access to clean drinking water.
Environmental Sustainability: Projects focused on promoting environmental sustainability, gender equality, and women empowerment.
Climate Resilience: Measures to enable communities to adapt to and mitigate the impacts of climate change.
Rural Development: Comprehensive rural development projects aimed at creating sustainable livelihoods.
Heritage and Culture: Protection and promotion of national heritage, art, and culture, including music.
Sports Promotion: Supporting and encouraging sports activities.
Scientific Research: Conducting research in science, technology, engineering, and medicine to promote sustainable development goals (SDGs).
Disaster Relief: Providing relief and assistance to victims of disasters and calamities.

Financial Allocation and Transparency

Detailed Financial Breakdown

ITC Limited’s CSR expenditure of ₹404.05 crores for 2023-24 was meticulously allocated across various projects. The company spent ₹380.44 crores on CSR projects, both ongoing and new, with an additional ₹20.20 crores on administrative overheads. Furthermore, ₹3.41 crores were allocated for impact assessment, ensuring that the initiatives are effectively managed and deliver measurable outcomes.

Detailed Financial Breakdown

Description	Amount (₹ Crores)
CSR Projects (Ongoing and New)	380.44
Administrative Overheads	20.20
Impact Assessment	3.41
Total CSR Spending	404.05

Accountability and Future Commitments

Excess Spending and Set-off Amount

The company’s transparent financial reporting highlights an excess CSR expenditure of ₹0.58 crore for the financial year 2023-24. This, combined with excess amounts from previous years, results in a total set-off amount of ₹1.93 crores available for future CSR activities. This approach underscores ITC’s commitment to not only meeting but exceeding its CSR obligations, thereby reinforcing its role as a responsible corporate citizen.