MUMBAI: In what could be the highest CSR spend by anIndian conglomerate, the Tata Group spent Rs 1,000 crore oncorporate social responsibility (CSR) in 2013-14. If one were to exclude the salt-to-software enterprise’s philanthropic trusts, the Tata Group companies spent Rs 660 crore on CSR in the just ended fiscal. The diversified Indian multinational’s CSR spend was well above 2% of its net profit, a minimum requirement for an Indian company under the Companies Act.
A significant amount of the total CSR spend by the Tata Group has gone into skill development, health and education, with Tata Steel emerging as the biggest spender within the group. Among other Indian conglomerates, the $40-billion Aditya Birla Group spent Rs 200 crore on CSR in fiscal 2014, which is a little over 2% of the net profit from India.
Under the new law, all companies with at least Rs 5-crore net profit or Rs 1,000-crore turnover will have to spend 2% of their annual net profit on CSR activities — which include slum redevelopment, road safety awareness and consumer protection services — with effect from April 1, 2015.