As per Section 135 of the Companies Act, 2013, Pidilite Industries Ltd., meeting the applicability threshold, needs to spend at least 2 per cent of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.
Pidilite, during the year 20219-20, has spent more than 2 per cent of the average net profit for the last 3 years on CSR expenses.
Total spending on CSR as percentage of profit after tax (%) stood at 2.39%. CSR expense stood at Rs 26.30 crores as PAT was 1,101.62 crores for the reviewed year, annual report said. Prescribed CSR Expenditure is Rs. 24.81 crores.
For the year 2019-20, the areas for CSR activities of the Pidilite are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.
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.
Also Read: Pidilite’s over Rs 23 cr spending surpasses prescribed CSR budget
A CSR committee is formed by the Company as per the Companies Act, 2013. The composition of the CSR Committee is in alignment with provisions of Section 135 of the Act. The Committee met two times during the financial year 2019-20.
The Company supports various bodies in carrying out activities in the areas of rural development, education, health care, general semantics etc. Some implementing agencies are Balwant Parekh Centre for General Semantics and other Human Sciences; Triveni Kalyan Education Trust; Gram Nirman Samaj Gram Vikas Yojna; Hanumant Seva Medicare Trust; Lokbharti Gram Vidyapeeth Trust; Trivenikalyan Foundation; Rotary Charitable Trust, Vapi; Ravi Krupa Trust; B K Parekh Parkinson’s Disease & Movement Disorder Society; Monghiben Balvihar Trust; Gram Daxina Murti; Indian Cancer Society; Gram Seva Kelavani Mandal Trust; Dakshinamurty Vidyarthi Bhavan; Sadbhavna Trust; Hiralal Parekh Parivar Charitable Trust; Parkinson’s Disease & Movement Disorder Society; Inner Wheel Club of Bombay; Helping Hand Charitable Trust; Rotary Foundation For Education & Learning; N. N. Mehta Memorial Education Trust; DDO Bhavnagar.
(CopyRight@India CSR Network)
