New Delhi, 11 November 2020: Mumbai-based pharmaceutical company Glenmark Pharmaceuticals has failed to spend 34 % of its prescribed corporate social responsibility budget in the financial year 2019-20. The company has also not been able to provide any convincing reason for not being able to spend the whole amount, in its annual report.
The average net profit of the company for the last three financial years stood at Rs 1,943.725 crore and the company had a CSR obligation of Rs 38.88 crore as per the Companies Act 2013. The companies operating in India are supposed to spend 2% of the average net profit of the past three years on CSR activities.
However, the company was unable to spend Rs 13.32 crore, which is 34 % of its prescribed CSR budget. In 2018-19 also, the pharmaceutical company had failed to spend its total CSR fund of Rs 38.25 crore for the year.
Moreover, the company did not give clear reasons as to why it failed to spend its prescribed CSR budget in particular year. In its annual report It said, "The company has been voluntarily carrying out CSR from financial year 2011 onwards. The actual spend of the Company on the CSR for this financial year was less than 2% of the average net profit for the last three years. The Company endeavors to increase the expenses in the coming years as more of its CSR projects are implemented."
Expenditure overview for 2019-20 (Amount in Rs million)
Though, the company claims that its CSR activities actively support the nation’s developmental vision, and contribute towards global Sustainable Development Goals (SDG), but it’s not visible in their commitment towards CSR activities.
The company’s implementation arm Glenmark Foundation, focuses on two core areas which are child health and sustainable livelihoods. The Foundation currently implements its projects through various Non-Governmental Organisations (NGO) partners, government bodies and other social institutions, it says. The company says that it’s prime focus of its CSR activities include child health, sustainable livelihood and access to healthcare.
The company’s CSR committee is led by chairman and executive director Cherylann Pinto.
