Through Its philanthropic efforts, Reliance Group continues to pave the way for sustainable community development across various sectors.
MUMBAI (India CSR): With Reliance Foundation at the helm, Reliance Industries‘ CSR expenditures are strategically crafted to drive meaningful change, continually emphasizing the company’s commitment to societal well-being and sustainable development. The rising trend and strategic allocation in the company’s CSR expenditures, spearheaded by Reliance Foundation, emphasize its commitment to creating a positive societal impact.
In alignment with Section 135 of the Companies Act, 2013 read alongside Schedule VII, the Company’s mandatory spending for Corporate Social Responsibility (CSR) for the current year stands at Rs 739 crore. This figure is marginally up from the Rs 737 crore of the preceding year.
Philanthropic Giant: Reliance Foundation
Reliance Industries, with its comprehensive development strategy through Reliance Foundation, has left an indelible mark on the global philanthropic landscape. As the CSR arm of Reliance Industries, the Foundation impacts millions of lives annually, establishing itself as one of the largest corporate philanthropies both in India and worldwide.
Recent Financial Year Observes Slight Increase in CSR Spending
For the current year, Reliance Industries’ mandatory spending on Corporate Social Responsibility (CSR), in accordance with Section 135 of the Companies Act, 2013 read alongside Schedule VII, amounts to Rs 739 crore. This sees a marginal rise from the previous year’s Rs 737 crore.
Detailed Overview of CSR Expenditures
Yearly Comparisons
For the financial year 2022-23, Reliance Industries reported CSR expenses of Rs 744 crore, a slight decrement compared to Rs 813 crore from 2021-22.
Allocation of Funds
A breakdown of this year’s allocation reveals:
- Rural Transformation: Rs 105 crore, a minor surge from the preceding year’s Rs 101 crore.
- Health (including COVID-19): A significant Rs 282 crore was earmarked, although it’s lesser than the previous year’s hefty Rs 475 crore.
- Education: Rs 281 crore was channeled here, a marked increase from Rs 202 of 2021-22.
- Sports for Development: At Rs 56 crore, this more than doubles the previous year’s Rs 27 crore.
- Disaster Response (including COVID-19): Stable at Rs 3 crore, slightly down from Rs 4 crore of the preceding year.
- Arts, Culture, Heritage, and Urban Renewal: This saw a quadruple increase from Rs 4 crore in 2021-22 to Rs 17 crore this year.
Major Contributors among Related Parties
Significant portions of the CSR spending were allocated to related entities:
- Reliance Foundation: Benefitted from Rs 397 crore, down from the preceding year’s Rs 494 crore.
- Reliance Foundation Youth Sports: Funding went up to Rs 34 crore, from Rs 22 crore the previous year.
- Reliance Foundation Institution of Education and Research: Received Rs 207 crore, a hike from Rs 142 crore of the previous year.
Financial Insights
- Average Net Profit: The company’s net profit, as outlined in sub-section (5) of section 135, stands at Rs. 36,962 crore.
- CSR Obligation: Based on average net profit, the company’s total CSR obligation is pegged at Rs. 739 crore.
- Total CSR Expenditure for the Year: Including both ongoing and other projects, the expenditure totals Rs. 744 crore. No contribution from administrative overheads was observed, and a nominal Rs. 0.50 crore was reserved for Impact Assessment. This culminates in a total spending of Rs. 744 crore for the financial year.
Important Facts and Growth
Reliance Industries’ CSR Spending
| Particulars | 2022-23 | 2021-22 | Growth (%) |
|---|---|---|---|
| CSR Amount Required to be Spent | Rs 739 cr | Rs 737 cr | +0.27% |
| Total CSR Expenditure | Rs 744 cr | Rs 813 cr | -8.49% |
| Rural Transformation | Rs 105 cr | Rs 101 cr | +3.96% |
| Health (including COVID-19) | Rs 282 cr | Rs 475 cr | -40.63% |
| Education | Rs 281 cr | Rs 202 cr | +39.11% |
| Sports for Development | Rs 56 cr | Rs 27 cr | +107.41% |
| Disaster Response (including COVID-19) | Rs 3 cr | Rs 4 cr | -25.00% |
| Arts, Culture, Heritage, and Urban Renewal | Rs 17 cr | Rs 4 cr | +325.00% |
| Contribution to Reliance Foundation | Rs 397 cr | Rs 494 cr | -19.64% |
| Contribution to Reliance Foundation Youth Sports | Rs 34 cr | Rs 22 cr | +54.55% |
| Contribution to Reliance Foundation Institution | Rs 207 cr | Rs 142 cr | +45.77% |
| Average Net Profit | Rs 36,962 cr | – | |
| Total CSR Obligation | Rs 739 cr | – | |
| Amount spent on Impact Assessment | Rs 0.50 cr | – |
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