A REPORT ON

CSR BY BSE SENSEX COMPANIES

IN PARTIAL FULFILMENT OF LAB COURSE

Submitted to: Prof. SHIV NATH SINHA

SUBMITTED BY:
PRAVENDRA SINGH
2015PGP034

Memo of transmittal

To: Prof. SHIV NATH SINHA

From: Pravendra Singh

Subject: Submission of report on CSR BY BSE SENSEX COMPANIES

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

CSR BY BSE SENSEX COMPANIES

BSE with more than 5,200 listed companies is one of the largest Exchanges in the World and
the first Exchange from Asia to join United Nations Sustainable Stock Exchanges (SSE)
initiative. BSE's objective is for Indian Companies to look beyond shareholder value and make
sustainability a core driver of their strategy.
The BSE has also entered into an MOU with Indian Institute of Corporate Affairs established
by the Ministry of Corporate Affairs, Government of India for creating benchmarks indices in
the area of Corporate Social Responsibility." Ashish Kumar Chauhan MD & CEO BSE Ltd.
Main areas they are concentrating in are: Health, Education and Environment.
Source: http://www.bseindia.com/static/about/sustainability.aspx?expandable=4

Some of the CSR activities by ONGC as follows:

1. HEALTHCARE AND HYGIENE:
Varisthajana Swasthya Sewa Abhiyan - ONGC and Help Age India: Providing basic
medical facilities, medical consultancy, medicine distribution, basic diagnostic test,
special health camp and palliative care to the elderly at their doorstep. A total of 20
Mobile Medicare Units (MMUs) are active in nine states, 17 Districts, 35 blocks and
131 Gram Panchayat and 240 villages of India, reaching a total of 1,186,020
beneficiaries.
Community Hospital in Lakhimpur, Uttar Pradesh: This project is unique as it is
developed as a Public-Private Partnership where a Capex of `45 million was
contributed by ONGC and the Open borne by the Operating Partner. The Community
Hospital has 26 beds and provides affordable primary and secondary healthcare
services to economically weaker sections.
Disability support: Launched a pan-India project to provide disability support, in
partnership with Artificial Limbs Manufacturing Corporation of India (ALIMCO) and
Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS). `262 million was spent to
provide orthopaedic, hearing and visually aids and appliances to 45,495 individuals in
Phase-I.
ONGC Mission Ujala: The project aims to screen the eyesight of 50,000 children in
government schools in NCR under the National Blindness Control Programme of Govt.
of India in partnership with PRAANI, an NGO. Provided spectacles and medicines to
3,000 children detected with refractive errors.
2. EDUCATION AND SKILL DEVELOPMENT:
ONGC- The Akshaya Patra Foundation: A fully automated mechanized kitchen was set
up to provide midday meals to school children (enrolled in Govt. schools) in Surat
district. The kitchen was inaugurated by the Honble chief minister of Gujarat Smt
Anandiben patil on 15th February, 2015 and feeds 126,000 students daily Mid-day
meal programme and Interior Child Development Scheme (ICDS).
ONGC-GICEIT Computer Education Program: Free computer education is imparted to
underprivileged youth. The project is implemented in association with Bhartiya Vidhya
Bhawans Gandhi Institute of Computer Education and Information Technology,
(GICEIT) at five work centres of ONGC located at Mehsana, Dehradun, Nazira, Karaikal

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%

Actual CSR spent

79%

Actual CSR spent

unspent CSR

CSR for the top ten BSE companies as follows:

We will compare the prescribed CSR and actually spent CSR by top companies such as Infosys,
ONGC, TCS, Wipro, Tata Steel, ICICI bank etc.
These top 10 companies together spent INR 2783 Crores on CSR activities some exceeding the
limit of 2% of their net income, other remaining behind that limit while few of them remain
exactly within their prescribed limit which we can clearly see from the chart underlying.
SOURCE: http://ngobox.org/media/India%20CSR%20Outlook%20Report%202015Abridged%20version-NGOBOX.pdf

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

Actual CSR spent

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.