MUMBAI: Unspent Corporate Social Responsibility (CSR) amount for the FY 2017-18 at MRF Limited was Rs. 33.55 Crore and total amount spent for the financial year ended 31.03.2018 was Rs. 9.49 Crore, which is 0.87% of PAT, annual report 2017-18 revealed.
As per the report, average net profit of the Company for last three financial years was Rs 2151.85 Crore. Prescribed CSR expenditure (two per cent of the average net profit of the last three financial years) was Rs 43.04 Crore. Total amount spent for the financial year ended 31.03.2018: Rs. 9.49 Crore. Unspent CSR amount is Rs 33.55 Crore.
The Company’s CSR projects have been primarily focussed on sports training, skill development, health care projects, education and rural development projects. All these projects have achieved their objectives in terms of adoption by the community.
The CSR activities carried out by the Company are in accordance with the CSR Policy, as formulated by the CSR Committee and approved by the Board.
“The broad objectives, as stated in the CSR Policy, includes supporting causes concerning healthcare, education, rural development, skill development, sports training and environment protection.”, said report.
The Company has been engaging in socially relevant projects viz., MRF Pace Foundation (which provides training for promising youngsters to become pace bowlers of national and international standard) and MRF Institute of Driver Development (which trains under privileged youngsters to become competent drivers), well before the requirements of CSR became a legal requirement.
These projects are being carried on for about two decades. These on-going projects were continued under the new regulatory framework and certain new CSR projects have also been identified and implemented.
Explanation on CSR unspent
During the last quarter of the financial year and in May 2018, the Committee has recommended various CSR projects (including two major projects) aggregating to Rs.25.73 Crore. Since these projects could be identified for implementation by the Company only during the later part of the year, the total amount required to be spent as per regulatory requirements in 2017-2018 could not be done.
Moreover, the Company is also considering various proposals for undertaking long term infrastructure development for its ongoing CSR initiatives. The above initiatives, when implemented, is expected to take care of the unspent amount of earlier years which was required to be incurred by the Company to fulfil its obligations as per Section 135 of the Companies Act, 2013 and also will go a long way in fulfilling the obligations of the Company towards CSR requirements for financial year 2018-2019.
(Report based on Annual Report, 2017-18)