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.
| Description | Amount (₹ Crores) |
|---|---|
| Required CSR Spending | 403.47 |
| Total Amount Spent | 404.05 |
| Excess Amount Spent | 0.58 |
| Amount Available for Set-off in Future Years | 1.93 |
(India CSR)
