MUMBAI (India CSR): Pidilite Industries Limited has shown a commendable dedication to fulfilling its CSR obligations for the financial year. Notably, the company has not only met its CSR obligations but also went above and beyond by spending more than the mandated amount, ensuring that the unspent CSR from the previous financial year was adequately utilized.
Financial Overview and CSR Obligation
As per the financial data released by the company, Pidilite reported a turnover of Rs. 10,597 Crores, with a robust net worth standing at Rs. 7,108 Crores. Delving deeper into the numbers, the company’s average net profit, in compliance with Section 135(5) of the Companies Act, came up to Rs 1,524.58 Crores. Following the stipulations laid down by the same section, 2% of this profit, amounting to Rs. 30.49 Crores, was the CSR obligation for Pidilite for the financial year.
Exceeding Expectations
Remarkably, Pidilite Industries didn’t just stop at meeting its obligation but surpassed it. The total CSR spending for the year was reported at Rs. 32.80 Crores. This amount also encapsulates Rs 1.85 Crores that remained unspent from the company’s CSR budget for FY 21-22. By incorporating this amount into the current year’s spending, Pidilite ensures no lapses in its dedication to societal contributions.
Embedding Social Responsibility into Business Strategy
This proactive step from one of India’s leading adhesive and chemical companies is a testament to its vision and commitment to creating a positive impact in communities and the broader society. The extra allocation in CSR funds reflects Pidilite’s philosophy of going beyond the statutory requirements, embedding social responsibility into its core business strategy.
The specifics of the projects and initiatives funded through this CSR spending have yet to be detailed, but industry observers and stakeholders are eagerly anticipating insights into how these funds have been employed for the greater good.
Setting the Benchmark for Corporate India
With companies like Pidilite leading the charge in exceeding CSR expectations, it sets a benchmark for other corporations to follow suit, emphasizing the vital role businesses play in community development and societal betterment.
Year Wise: CSR Spending
| Year | CSR Spending | Growth |
| 2022-23 | 32.80 Crores | | 29.30% |
| 2021-22 | 25.37 Crores | -8.42% |
| 2020-21 | 27.70 Crores | – |
Important Facts: Pidilite Industries Limited
Turnover: Rs. 10,597 Crores
Net Worth: Rs 7,108 Crores
Average Net Profit as per Section 135(5): Rs 1,524.58 Crores
2% of Average Net Profit as per Section 135(5): Rs. 30.49 Crores
Total CSR Obligation for the Financial Year: Rs. 30.49 Crores
Total Amount Spent for the Financial Year: Rs. 32.80 Crores (This includes an additional amount of Rs 1.85 Crores from the unspent CSR of FY 21-22, which was spent in FY 22-23).
As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.
The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.
CSR Unspent Amount
The unspent amount of Nil crores ( 1.85 crores in the previous year) will be transferred to unspent CSR account within 30 days from the end of the financial year, in accordance with the Companies Act, 2013 read with the CSR Amendment Rules. The unspent CSR amount of previous year ( 1.85 crores) is incurred for CSR activities in current year.
Impact on Beneficiary Farmers
A notable 83% of farmers expressed that the most impactful knowledge they gained was on natural farming techniques. This method not only helped them reduce costs but also allowed them to minimize the use of inorganic inputs, aligning with sustainable agricultural practices.
An impressive 86% of the farmers came to know about the Manar Center through village level meetings. Presently, the outreach of the Center extends to the Mydhar cluster with approximately 1,000 farmers and the Sihore cluster consisting of around 700 farmers. These farmers actively engage in training activities, and it is commendable that 96% of them expressed a high level of satisfaction.
35% of the farmer respondents have experienced a growth in their income attributed directly to the training they received. A few of the practices adopted include drip and sprinkler irrigation, intercropping farming, border plantations, and advancements like vermicompost and fodder development.
Impact on Beneficiary SHGs Members
The SHG members were exposed to a broad spectrum of training, especially focusing on post-harvest activities and capacity-building. A specific highlight is that 28% of the surveyed group received training under the food processing unit. The initiative has successfully encompassed 390 women members across 8 villages.
Attitude:
Awareness of the SHGs initiative at the Center reached 89% of respondents via the cluster officer. A heartening 79% of SHG members now feel empowered, attributing this to their ability to participate more actively in household-level decision-making, thanks to the income they are now generating.
Practice:
The hands-on training at the Center has equipped SHG members to delve into new and consistent income-generating activities. An overwhelming 97% felt that their involvement in horticulture development, facilitated by the Center, has brought them tangible benefits.
Also Read: Pidilite Achieves Milestone With 8 Lakh Trees Planted In Gujarat
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