GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Total CSR Spending May Cross Rs 50,000 cr by March 2019: Report

The report also revealed that the top 20 corporations command over 45 per cent of the prescribed CSR in the country.

PTI

Updated:July 4, 2018, 11:23 PM IST
facebookTwittergoogleskypewhatsapp
Total CSR Spending May Cross Rs 50,000 cr by March 2019: Report
Image for representation (Image: PTI)
Mumbai:The total corporate social responsibility (CSR) spending by the top 500 companies in the country since the applicability of mandatory CSR in 2014 is likely to cross Rs 50,000 crore by March 2019, said a report.

The CSR compliance is also likely to improve and fall in the range of 97 to 98 per cent by financial year 2019-20, according to a research done by development sector platforms CSRBOX and NGOBOX.

"Mandatory CSR has gradually formalised the corporate philanthropy with emphasis on impacts on the ground. With on an average Rs 12,000 crore funding annually, there is a lot that can be done in education, healthcare and rural development areas," said Bhomik Shah, chief executive officer,NGOBOX and CSRBOX.

The government in 2014 made mandatory for companies to spend 2 per cent of their three-year average annual net profit on CSR activities in each financial year, starting from FY15.

The norms are applicable to firms with at least Rs 5 crore net profit or Rs 1,000 crore turnover or Rs 500 crore net worth.

The report also revealed that the top 20 corporations command over 45 per cent of the prescribed CSR in the country.

In addition, the top 500 companies, which contribute to over 90 per cent of the total CSR spend, are estimated to spend over Rs 11,000 crore on social initiatives in FY19, the report said.

In terms of sectors, education is expected to be the most favoured area of CSR investment in the coming years.

In terms of states, Maharashtra receives the biggest chunk of the total CSR fund spent in the country, followed by Rajasthan, Karnataka and Gujarat, together accounting for one third of the country's total CSR spends, the report said.

The north-eastern states of Nagaland, Meghalaya, Mizoram and Tripura have received lowest CSR funding so far.

The report revealed that an upward trend was seen year after year when it comes to CSR compliance by companies, however, the size of funding for each initiative has shown downward movement, suggesting the fact that firms are looking at more number of projects to diversify their CSR portfolio.

It said that if the new recommendation by sub-legal committee on CSR, constituted by the ministry of corporate affairs in April 2018, is accepted by the government, then companies will not be allowed to carry forward the unspent CSR fund, which will boost the CSR compliance.

Also Watch

| Edited by: Padmaja Venkataraman
Read full article
Loading...
Most Active
Company Price Change %Gain
Bajaj Finance 2,721.35 +201.15 +7.98
Bajaj Auto 2,839.60 -275.40 -8.84
Reliance 1,128.65 +23.80 +2.15
Infosys 1,348.10 +31.40 +2.38
Ashok Leyland 107.45 +1.75 +1.66
Company Price Change %Gain
Bajaj Finance 2,721.50 +203.90 +8.10
ICICI Bank 266.00 +4.80 +1.84
Infosys 1,348.35 +31.80 +2.42
Bajaj Auto 2,841.10 -271.70 -8.73
Power Grid Corp 176.20 -1.05 -0.59
Top Gainers
Company Price Change %Gain
Bajaj Finance 2,721.35 +201.15 +7.98
Bajaj Finserv 6,663.95 +367.05 +5.83
Sun Pharma 560.10 +15.15 +2.78
Tech Mahindra 659.45 +17.25 +2.69
Cipla 625.80 +15.70 +2.57
Company Price Change %Gain
Sun Pharma 559.90 +14.80 +2.72
Infosys 1,348.35 +31.80 +2.42
Reliance 1,128.55 +24.65 +2.23
ICICI Bank 266.00 +4.80 +1.84
Axis Bank 534.45 +7.15 +1.36
Top Losers
Company Price Change %Gain
Bajaj Auto 2,839.60 -275.40 -8.84
HPCL 275.40 -9.00 -3.16
IOC 161.05 -4.75 -2.86
Vedanta 202.40 -5.80 -2.79
BPCL 388.85 -9.45 -2.37
Company Price Change %Gain
Bajaj Auto 2,841.10 -271.70 -8.73
Vedanta 202.60 -5.70 -2.74
Hero Motocorp 3,373.15 -85.75 -2.48
ONGC 157.85 -3.55 -2.20
Kotak Mahindra 1,333.45 -16.80 -1.24
Loading...
Loading...