 "Unspent CSR funds hit five-year high of Rs 1,475 crore in FY23, shows data")
Not all listed companies above a threshold have spent the required portion of funds on Corporate Social Responsibility (CSR) areas. This unspent amount stood at a five-year high of Rs 1,475 crore during 2022-23 (FY23).
Altogether, listed companies spent Rs 15,602 crore on CSR expenditure during FY23, while they were required to incur Rs 15,787 crore, according to data from corporate tracker primeinfobase.com.
As such, companies spent Rs 185 crore less than what they were mandated to do. Some companies overspent the amount, while others did not spend even the required amount.
The Rs 1,475 crore is the aggregate amount unspent by those companies that incurred less than the mandated sum on CSR, according to data in their annual reports culled by primeinfobase.com.
The companies that meet the criteria on the basis of net profit, turnover, and net worth are required to incur at least two per cent of their average net profits during the immediately preceding three financial years on CSR activities such as initiatives on environment, health, skill development, drinking water, and sanitation.
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This data covers all companies listed on the NSE and those exclusively listed on BSE with a market capitalisation exceeding Rs 1,000 crore.
These listed companies allocated Rs 99 for every Rs 100 mandated for CSR projects. This marks the lowest ratio in the past five years. In FY2020, these companies spent Rs 111 for every Rs 100 required.
On average, each company spent Rs 11.29 crore on CSR in FY23, a four per cent decrease from FY22 and a nine per cent decrease from FY21. Listed companies, on aggregate, spent 1.91 per cent of their net profits on CSR, less than the prescribed requirement.
According to the National CSR Portal under the Ministry of Corporate Affairs, the number of defaulting companies whose expenditure has been less than the prescribed amount is 4,855, one-fifth of the total companies.