New Delhi, 16 August 2020: Loss-making telecom giant Airtel has spent more than Rs 31 crore on its Corporate Social Responsibility (CSR) programmes despite having no obligation towards such activities in 2019-20, owing to losses it incurred over last three financial years.
Despite the consecutive losses due to dynamically changing business environment in telecom sector, the pioneer of telecom services in India spent more than Rs 31 crore on various CSR activities.
As per the CSR laws, a company has to spend minimum 2 per cent of the average profit over last three financial years. The telecom company, thus had no obligation to spend on CSR activities due net losses it has been incurring over last three years. The company has reported an average net profit of Rs 15,09 Cr before tax for last three financial years.
However, the Company made voluntary CSR contribution of Rs 31.62 crore during the fiscal year 2019-20.
The CSR Committee at Bharti Airtel is led by Rakesh Bharti Mittal who is also the Non-Executive Director at the company.
"Despite the unprecedented challenges and pressure on the telecom industry, the Company has made voluntary CSR contribution of Rs 31.6 Cr during the financial year 2019-20," the reported. Additionally, the Company has also contributed Rs 23.5 lakh towards various other charitable causes which are not covered within the ambit of the provisions of Section 135 of the Companies Act, 2013. Thus, the aggregate CSR spending of the Company for Financial Year 2019-20 (including other contributions)is Rs 31.8 Cr, the company’s annual report read.
Reiterating its social commitment, the company said that Corporate social responsibility (CSR) is a vital componentofBharti Airtel’s corporate ethos and it was committed
to contributing to the communities and society in which it operates. "We aim to leave a positive impact on the communities in a meaningful and enduring way through multiple projects," it said.
The major part of this year’s CSR budget, was contributed to Bharti Foundation which utilised the funds towards establishing Satya Bharti University, a project announced by the company in 2017. The company had contributed another Rs 30 crore for the University in the year 2018-19. Thus, the total contribution made by the company from its CSR budget stands at Rs 60 crore now.
Bharti Foundation is the philanthropic arm of Bharti Enterprises. It was set up in the year 2000, with an aim to implement and support programs in primary, secondary, and higher education as well as to foster initiatives related to health and sanitation.
Satya Bharti University:
Satya Bharti University is part of Airtel’s long-term social commitment to establish a world class institution for Science and Technology to complement its existing programs in the area of education.
The University is envisioned to have a strong focus on future technologies like AI, Robotics, AR/VR, IoT, in addition to offering degrees in Electrical & Electronics Engineering and Management.
According to the company, the university will be a non-profit centre of excellence and will offer free education to a large number of deserving youths from economically weaker sections. It will also promote and fund advanced research with global linkages. It intends to add leading global industry partners, i.e. Facebook, Google, Apple, Microsoft and SoftBank among others.
