Corporate Social Responsibility (CSR) is being harnessed to create systemic solutions that address the root causes of societal challenges in India. Tata Consultancy Services (TCS), a global leader in technology and consultancy, has demonstrated its commitment to the socio-economic development of society. Company has invested Rs. 434 crore on various sustainable development programmes, against its prescribed CSR expenditure of Rs. 542 Crore, Company’s annual report 2018-19 revealed.
Including overseas spend, the Company’s total pending on CSR is Rs. 527 crore. CSR programmes are focused on education and skill building, health and wellness, and environment. The CSR projects undertaken are within the broad framework of Schedule VII of the Companies Act, 2013.
“As per section 135 of the Companies Act, 2013, amount required to be spent by the Company during the year ended March 31, 2019 and 2018 is Rs. 542 cores and Rs. 497 crore, respectively, computed at 2% of its average net profit for the immediately preceding three financial years, on Corporate Social Responsibility (CSR).”, report said.
According to the report, TCS incurred an amount of Rs. 434 crore and Rs. 400 crore during the year ended March 31, 2019 and 2018, respectively, towards CSR expenditure for purposes other than construction / acquisition of any asset.”
“TCS’ CSR initiatives reached more than 1.66 million beneficiaries globally, in FY 2019, once again creating a considerable societal impact in the countries in which we operate.”, report said.
TCS partnered with Tata Trusts, NGOs and various not-for- profit organizations to scale up social programs.
- Total Turnover: Rs 146,463 crore
- Total profit after taxes: Rs 31,472 crore
- Average net profit of the company for last three financial years for the purpose of computation of CSR: Rs 27,078 crore.
- Prescribed CSR Expenditure (two per cent of the amount as in item 2 above): Rs. 542 crore
- Amount unspent: Rs. 108 crore
- Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%): 1.6 % of average net profit for previous three years
List of activities in which expenditure in 4 above has been incurred:
|Category (CSR in India only)||Rs. Crore|
|Health and Wellness||292|
|Education and Skill Building||39|
|Restoration of Heritage Site||1|
|Contribution to TCS Foundation||92|
Report informed that the Company also spends actively in various communities and on social initiatives in the countries it operates in. These expenditures, while in the nature of CSR spend, do not qualify under Section 135 of the Companies Act 2013. The total CSR spend of the Company for FY 2019 including both the nature of expenses is Rs. 527 crore
“With respect to the projects identified by the Company as a part of its CSR activities, the Company had an outlay of Rs. 1,600 crore against which a cumulative expenditure of Rs. 1,483 crore has been incurred up to March 31, 2019.”, report revealed.
The Company has a CSR committee of directors comprising N Chandrasekaran, Chairman of the Committee, O P Bhatt, Rajesh Gopinathan and Aarthi Subramanian.
CSR Committee Meeting
Three meetings of the CSR Committee were held during the year under review. Four Board meetings of TCS Foundation, a Section 8 company which was incorporated with sole objective of carrying on Corporate Social Responsibility (CSR) activities of the Company were held during the year.