Corporate spending in CSR increases by 28 percent in FY16

Corporate spending in CSR  increases by 28 percent in FY16

NEW DELHI. A gradual increase in corporate earnings and profits has led to a 28 per cent rise in Corporate Social Responsibility (CSR) spending by listed entities in FY16.
 
According to data compiled by Prime Database, corporate bodies have spent Rs 8,345 crore on various CSR activities in FY16 - against Rs 6,526 crore in the previous financial year. 
 
The unspent amount has, however, come down over the previous year. Against an unspent amount of Rs 2,583 crore in 2014-15, the group of companies spent Rs 1,984 crore less than what was mandated in 2015-16. CSR expenditure by PSUs witnessed a sharp rise in 2015-16. On an overall basis while 48 PSUs spent Rs 2,078 crore in 2014-15, it went up by 41 per cent to Rs 2,936 crore by 47 PSUs in 2015-16. 
 
Data suggests that education was the most preferred sector with investments worth Rs. 2,042 crore, accounting for one-fourth of the total CSR spendings. Way behind but still second, funds amassed for tackling human diseases and viruses were worth Rs 1,637 crore. 
 
The Companies Act has prescribed nine different schedules under Schedule VII, under which spends can be made and it includes the PM’s relief fund. Government-owned companies lead from the front when it comes to passive CSR spends as almost 70 per cent of the money transferred to the relief funds has been done by PSUs. While NTPC has transferred Rs 278 crore or 56 per cent of its total CSR spend of Rs 491.8  crore into the relief funds, Power Finance Corporation and NHPC transferred Rs 173 crore and Rs 59.5 crore, respectively. 
 
According to Pranav Haldea, Managing Director of Prime Database, the increase in CSR spending was a secular trend spread across all sectors and types of companies.
 
"Even CSR spending by public sector undertakings(PSUs) saw a huge increase of 41 per cent from previous year. Overall, 47 PSUs have spent Rs 2,396 crore in FY16," Haldea said.n terms of absolute spending, Reliance Industries spent Rs 651.57 crore on various CSR activities - the highest by any corporate in FY16.
 
This was followed by state owned NTPC and ONGC that which spent Rs 491.8 crore and Rs 409 crore respectively on various social activities during the financial year.

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