New Delhi, 31 October 2020: Indian Railway Finance Corporation Limited (IRFC), finance arm of the Indian Railway has managed to spend only 67.5% of its prescribed budget in the financial year 2019-20. Moreover, the company spent 99.88% of its CSR fund by making a contribution to the PM Cares Fund, which was created on 28 March 2020.
The average net profit of the IRFC, as per the Companies Act 2013, for the past three years stood at Rs 2526.18 Crore. The prescribed expenditure (2% of a company’s average net profit of the past three years) for the company’s CSR activities was thus calculated as Rs 50.52 Crore. However, the company failed to spend the whole amount and spent only Rs 34.10 Crore. The unspent amount was Rs 16.42 Crore.
IRFC in its annual report said, "Against the commitment of Rs 50.52 Crore, the company has disbursed Rs 34.10 crore during the year. The balance amount will be disbursed on receipt of claim/bills." It also says, "If any amount remains unspent or surplus arises out of the CSR projects in a particular year, the same shall be carried forward to next year and shall not form part of the business profits of the Company."
The IRFC has majorly contributed Rs 34.06 Crore to PM Cares Fund and Rs 0.04 Crore was disbursed to 100 corrective cleft surgeries.
The company’s CSR Committee is headed by Chetan Venugopal and other members include Kishor J Devani and Ashok Kumar Singhal. During the financial year 2019-20, the committee met six times.
Expenditure Summary:
Project | Sector | Amount Spent (in Rs Crore) |
Contribution to PM Cares Fund | Preventive healthcare | 34.06 |
100 corrective cleft surgeries | Preventive healthcare | 0.04 |
Total | | 34.10 |
During the year 2020-21, the Company is required to spend about Rs. 61.23 crore. Preliminary study on projects is being undertaken, says the company’s annual report.
