Unlisted companies Unlisted companies accounted for 49.2% of the total CSR spend in 2022-23, compared with 40.4% in the pre-pandemic year of 2019-20, the data showed, which comes with a lag. In absolute terms, unlisted companies spent Rs 14,742 crore on CSR obligations in 2022-23, just below the Rs 15,245 crore spent by listed companies. publicly traded companies.
Officials and experts described it as a significant change, reflecting improved profitability of unlisted companies as well as compliance with CSR standards.
In India, unlisted companies far outnumber the 6,700 listed ones, but an overwhelming majority of them are neither large nor profitable enough to fall under the CSR umbrella.
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As per the norms, companies with a net worth of at least Rs 500 crore or an annual turnover of more than Rs 1,000 crore or a net profit of more than Rs 5 crore must annually spend at least 2% of their average net profit earned in the preceding three financial years on stipulated social initiatives. Companies were required to file details of their 2022-23 CSR spend by March 2024 without penalties. A few are still in the process of filing details with penalties, but their spending is unlikely to alter the overall trend for 2022-23, officials said. “With the new CSR regime, the obligations have shifted from ‘comply or explain’ to ‘comply or be penalised’. Companies are seeing more synergies between CSR and ESG (environmental, social and governance) initiatives,” said Asish Philip, partner at law firm Lakshmikumaran & Sridharan.
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