Data suggests that education was the most preferred sector with investments worth Rs. 2,042 crore under CSR
A gradual uptick in corporate earnings has led to a 28 per cent surge in corporate social responsibility (CSR) spending by listed entities in 2015-16.
According to data compiled by Prime Database, these companies spent Rs 8,345 crore on various CSR activities in 2015-16, against Rs 6,526 crore the previous year. Education was the most preferred cause, attracting Rs 2,042 crore or nearly a fourth of the total spending, followed by spending on preventing human diseases and viruses, of Rs 1,637 crore. Contribution to the Prime Minister’s National Relief Fund saw a five-fold jump to Rs 869 crore.
Pranav Haldea, managing director, Prime Database, said the increase in CSR spending was a trend across sectors and types of companies. CSR spending by public sector undertakings (PSUs) saw a rise of 41 per cent. Overall, 47 PSUs spent Rs 2,396 crore in FY16, said Haldea.
In absolute spending, Reliance Industries spent Rs 651.6 crore on CSR, the highest by a corporate group in FY16. Followed by government-owned NTPC and Oil & Natural Gas Corporation, of Rs 491.8 crore and Rs 409 crore.
According to a law enacted in 2014, all companies with net worth of at least Rs 500 crore and annual revenue above Rs 1,000 crore or net profit of Rs 5 crore need to invest at least two per cent of their average net profit in the past three years on CSR projects.
The law is applicable to all companies with a net worth of at least Rs 500 crore, besides covering corporate entities that have revenue earnings above Rs 1,000 crore. It is also applicable to companies with a net profit of Rs 5 crore are covered under the CSR law.
This article was taken from here.