The CSR provision requires affected companies to spend at least 2 percent of their average net profits made in the preceding three years on CSR.
GCPL’s CSR spending stood at Rs 21.87 crore in the 2018-19 fiscal year.
In its annual report, the company said its average net profit in the last three fiscal years was Rs 1,267 crores and prescribed CSR budget was Rs 25.34 crore for the 2019-20 fiscal.
“A total of Rs 19.49 crore was spent, against the mandated amount of Rs 25.34 crore. The unspent amount is Rs 5.85 crore,” the company said.
The CSR Committee has approved that the unspent funds be carried forward to the 2020-21 fiscal in addition to the prescribed 2 percent CSR budget for 2020-21, it said.
According to GCPL, projects worth this amount had been sourced and committed, with signed MoUs and deliverables agreed during the financial year itself.
“In order to ensure proper utilization of funds and high-quality results from our CSR initiatives, we believe in funding projects on tranche basis. The whole grant is not given upfront in advance and is instead given in stages when certain milestones are achieved,” it said.
This led to an underspend of Rs 5.85 crore during the financial year. The Company is committed to spend the unspent funds specifically for the selected projects in 2020-21, it added.
The company spent CSR funds on livelihood enhancement projects, promoting preventive healthcare, rural development projects, environment sustainability, education and traditional arts during 2020-21.
About 80 per cent of GCPL’s product portfolio comprises health, hygiene, and value for money product.
