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A Report On: in Partial Fulfilment of Lab Course
A Report On: in Partial Fulfilment of Lab Course
SUBMITTED BY:
PRAVENDRA SINGH
2015PGP034
Memo of transmittal
Dear Sir,
This document is submitted in partial fulfilment of the LAB course and contains report on
CSR BY BSE SENSEX COMPANIES, as my official submission towards the individual
assignment component.
In case you need any further information related to the report, I will be happy to provide it.
Yours sincerely,
Pravendra Singh.
INTRODUCTION:
CSR is concerned with treating the external and internal stakeholders of the firm ethically or
in a socially responsible manner and the wider aim of corporate social responsibility is to
create higher and higher of standards of living, while preserving the profitability of the
corporation, for its stakeholders.
Earlier it was not mandatory but according to CLAUSE 135 that makes it mandatory for
organizations of particular size and profitability to spend 2% of their average earnings of last
three years on CSR. The proposed draft CSR rules under section 135 of the Act has posted on
the ministry of corporate affairs website for public comments till October 7 th 2013.
Website: http://www.mca.gov.in/
What is there in CLAUSE 135?
Every registered company having,
Net worth greater than or equal to Rs 500cr or
Turn over greater than or equal to Rs 1000cr or
Net profit greater than or equal to Rs 5cr; during any financial year shall constitute a corporate
social responsibility committee of the board consisting of three or more directors, out of
which at least on director shall be an independent director.
Role of this committee is to review recommendations made by CSR committee, approve
them, disclose content of the policy in companys report and most important is to ensure that
company spends at least 2% of its average earning of previous 3 financial years.
Source: http://www.mca.gov.in/SearchableActs/Section135.htm
and Rajahmundry. More than 8295 students have received computer training through
these centres in FY15.
ONGC Super 30: ONGC Super 30 is a residential Coaching Programme for IIT
aspirants based at Sivasagar Assam. The initiative was conceived to cater to
underprivileged students who are unable to get proper coaching to qualify for
engineering exams, due to lack of resources and infrastructure. The total cost of the
project is `6.7 million.
3. Supporting Differently-abled:
ONGC Centre for vocational rehabilitation for the differently-abled: A financial support
of `13 million has been provided to Tamana School of Hope, Vasant Vihar, New Delhi
for setting up of Autism Centre and provide vocational training for the mentally
challenged young adults and children working for their economic rehabilitation by
teaching relevant vocational skills to them.
ONGCCheshire Home Project for physically and mentally Challenged: A project in
partnership with Cheshire Homes (India) Mumbai, focused on rehabilitation and
support services for economically disadvantaged children. Beneficiaries were
identified from three slum communities in Mumbai - Hanuman Nagar, Damu Nagar
and Shivaji Nagar.
4. Environmental Sustainability:
Eastern Swamp Deer Conservation Project: The phase II of the project commenced
with the aim of relocating the Eastern Swamp Deer from Kaziranga National Park to
Manas National park. This is a research based project aimed at conserving a viable
population of the Eastern Swamp Deer in its natural habitat. An investment of `8.9
million has been earmarked for this project.
Harit Moksha Green Cremation System: This is an innovative initiative in partnership
with Moksh da Paryavaran Evam Van Suraksha Samiti (MPEVSS) that aims to reduce
wood consumption during traditional cremations through the Mokshda Green
Cremation Systems (MGCS). The project entails installing 30 units of MGCS in 8 cities
across 7 different states with an investment of `91.9 million. Till date, the project has
saved about 13,700 tons of wood and has avoided 26,500 tons of GHG emissions.
5. Rural Development:
Wind Turbine Generators: This project seeks to promote development through energy
independence of underdeveloped districts in Jaisalmer, Rajasthan. It entails installing
49 Wind Turbine Generators (WTG), each of capacity of 2.1 MW and a total capacity
of 102.9 MW in partnership with Suzlon Energy Ltd. ONGC contributed `5620 million
to the project. 6. Women Empowerment: ONGC is a founder member of Women in
Public Sector (WIPS) established way back in 1990 to promote women empowerment
initiatives. Women Development Forum (WDF), an internal wing of ONGC women
Employees was also formed to encourage women employees to develop their
potential to the fullest. Women in Public Sector (WIPS) presented ONGC with the Best
Enterprise Award for Women Empowerment consecutively for 3 years till 2014. In
FY15, ONGC stood second in the same category.
6. Sports Development and Infrastructure:
Rajeev Gandhi International Sports Complex, Dehradun: The project involves building
a cricket stadium with capacity of 30,000 individuals, a sports complex and other
ancillary facilities. ONGC contributed 500 million to the project, which is expected to
be completed in two years. In addition to the CSR initiatives highlighted above, ONGC
has partnered with several NGOs and non- profit organizations to implementing social
impacts projects across thematic areas.
Similar activities are performed by different BSE companies like Wipro, TCS, Tata Steel, NTPC,
Infosys, ITC etc.
ANALYSIS
For the last year i.e. 2014-15 prescribed CSR for 250 BSE companies to spend was 7040cr but
actual amount accounted for it was 5563cr only and for year 2015-16 prescribed is 8016cr
hike of 13.8% from previous one.
Unspent CSR
21%
unspent CSR
Wipro
ICICI Bank
Tata Steel
National Mineral corporation limited
NTPC
ITC
TCS
infosys
ONGC
reliance industries
0
100
200
Prescribed CSR
300
400
500
600
700
800
CONCLUSION
Most of the companies who could not spend the prescribed CSR budget, have not given any
specic reason for not spending the full prescribed amount, and instead chose to give a
generic commitment to spend the remaining amount in the next nancial year.
Also we can say that PSU also spent less than 1% of their net income as seen in report link is
provided above for that.