Firms spent Rs8,803 crore on corporate social responsibility activities in 2014-15, shows data1 min read . Updated: 19 Nov 2016, 12:08 AM IST
However, the total prescribed expenditure for 2014-15, as per norms of the ministry of corporate affairs , was Rs11,883 crore
New Delhi: Companies spent a total of Rs8,803 crore on corporate social responsibility (CSR)-related activities in 2014-15, data released by the ministry of corporate affairs on Thursday show.
The data covers companies that reported CSR spending till 31 January, or 7,334 companies of the eligible 10,475.
CSR rules were first implemented in fiscal 2015. The law directs firms with a net worth of Rs500 crore or revenue of Rs1,000 crore or net profit of Rs5 crore to spend 2% of their average profit of the previous three years on social development-related activities.
The total prescribed expenditure for 2014-15, as per the 2% norm, was Rs11,883 crore, but companies spent just over Rs8,000 crore. Among those companies that reported CSR spending, the highest 10 spenders contributed 32% of the total at Rs2,783 crore.
Government-owned companies make up a smaller portion of the CSR pie. Ministry of corporate affairs data (MCA) data show only 84 of the 226 public sector units had positive CSR expenditure, compared with 4,111 of 7,108 private companies.
Predictably, states with a greater number of industries, manufacturing units and corporate head-offices benefited the most from the CSR spending.
Maharashtra emerged as the highest recipient of CSR money of Rs1,101.71 crore. States in the North-East saw the least amount of spending on CSR. The education sector saw the highest allocation by firms, with it constituting 32% of total CSR expenditure.
The MCA data regarding CSR spend in the first year of the rules—2014-15—comes two months after the last date (30 September) for filing annual reports of the second year of CSR. 2015-16 has gone by and the third financial year of CSR is nearing its end.