3% Rise In CSR, Interest In PM Cares Fund Wanes
By BW CFO World Online Bureau
CSR expenditure has increased during the times of covid-19, but the contribution to the PM cares fund was much lesser at Rs 85 crore against the Rs 831 crore during the first wave.
During the second wave, corporates contributed only Rs 85 crore to the PM-CARES Fund against Rs 831 crore to what was classified as ‘others’ whereas, during the first wave between March-May 2020, corporates had contributed Rs 4,316 crore to the PM-CARES Fund and Rs 3,221 crore to others.
According to a report, India Inc’s charitable spending has grown by 3.62 per cent to Rs 22,000 crore in FY21 as profits increased, and a majority of the distributions have been done to pandemic-linked causes as compared to Rs 21,231 crore in FY20.
The report by Crisil said that spending through cash for PM care funds was greater in the first wave then preference shifted to more direct support through in-kind spending in the second wave.
“Given the severity of the second wave, support was materialistic like providing the healthcare infrastructure with equipment such as ventilators, oxygen concentrators, cylinders, testing kits, and donation of food/ ration which could not be measured in terms of money”, the report said.
The FY21 expenditure will include Rs 14,986 crore from more than 1,700 listed companies and Rs 7,072 crore by unlisted ones compared to Rs 14,431 crore by 1,387 listed companies and Rs 6,800 crore by 19,962 unlisted ones.
The agency said the overall CSR expenditure has crossed Rs 1 lakh crore within seven years of the debatable mandate on CSR spending getting effected through changes in the Companies Act.
Over 40% of the spending came in the previous two years because of the covid pandemic and it is expected that in the third wave it will increase.
In fiscal 2020, sector-wise participation was similar to the previous year, with more than 50% of the companies across sectors spending 2 per cent or more adding companies in the financial, information technology, and energy sectors punching above their weight.
From a geographical distribution perspective, Maharashtra continued to lead with Rs 6,710 crore spent in FY20 as compared to Rs 5,679 crore in FY19, the report said, adding that the western state was followed by National Capital Region and Gujarat respectively.
