India spends Rs. 4,000 Crore on CSR in 2015

According to a report, India’s top 75 companies have spent Rs. 4,000 crore from their profits for social causes, as part of their corporate social responsibility (CSR) agenda in 2015.


According to a report on Business Insider quoting government estimates, India’s top 75 companies have spent Rs. 4,000 crore from their profits for social causes, as part of their corporate social responsibility (CSR) agenda in 2015.

The top spenders:

The top spender is Reliance Industries with Rs 760 crore, while ONGC with Rs 495 crore, Infosys 239 crore, NTPC with Rs 205 crore and TCS with Rs 220 crore followed.

The report said that the government expects CSR spending to steadily increase over the years, with the first year estimate expected to be at Rs. 9,000 crore, a substantial decrease from the earlier reported Rs. 15,000 crore.

Santhosh Jayaram, director at KPMG, was quoted as saying, “Out of the 75 top companies, the 2% of average net profits for past three years comes positive for 67 companies; 39 of them have not spent 2 per cent but all of them have shown their commitment towards CSR,”.

What is the Act all about?

The Ministry of Corporate Affairs had notified Section 135 and Schedule VII of the Companies Act 2013 as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 to come into effect from April 1, 2014. Every company, private limited or public limited, which either has a net worth of Rs 500 crore, a turnover of Rs 1,000 crore or a net profit of Rs 5 crore, needs to spend at least 2 per cent of its average net profit for the immediately preceding three financial years on corporate social responsibility activities.

The CSR activities should not be undertaken in the normal course of business and must be with respect to any of the activities mentioned in Schedule VII of the 2013 Act. Contribution to any political party is not considered to be a CSR activity and only activities in India would be considered for computing CSR expenditure.

More information can be obtained here.


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