Mindtree spends 178% more than prescribed CSR budget, major chunk goes to PM CARES Fund
Mindtree spends 178% more than prescribed CSR budget, major chunk goes to PM CARES Fund
New Delhi, 2 September 2020: Digital transformation and technology services company Mindtree’s CSR expenditure has seen a whopping 265% increase in the past four years. The company increased its CSR expenditure from Rs 9.4 crore in financial year 2015-16 to Rs 34.3 crore in financial years 2019-20. However, the majority of the increase went to the PM CARES Fund created during Covid-19 pandemic.
The Larsen & Toubro Group company donated Rs 20 crore to the fund created by the prime minister of India for the purpose of fighting with problems like Covid-19. The total contribution towards CSR activities for financial year 2020 amounted to Rs 34.3 crore which included contribution of Rs 20 crore to PM CARES Fund for fighting the coronavirus pandemic.
Source: Mindtree’s annual report
The company has spent 178% more than its prescribed CSR budget in 2020. As per the company’s annual report, its average net profit for the last three financial years stood at Rs 616.44 crore, bringing its prescribed CSR budget for 2019-20 to Rs 12.33 crore (2% of the average profit over the last three financial years).
The company claims that around 21,198 people have been benefited directly from its CSR projects.
It says, "Our CSR endeavours focus attention towards the disadvantaged, vulnerable and marginalized stakeholders. Our Mindtree Foundation spreads its initiatives across education for the under privileged, support for people with disabilities, and empowering the women and youth of the country."
The company says that its CSR platforms are focused on leveraging technology for addressing social and environmental risks in the larger society and creating sustainable value over years.
CSR expenditure during the financial year (2019-20)
CSR project or activity identified
Focus areas
Amount spent (Rs in crore)
Digital technology and professional services to people working in informal sector.
Eradicating poverty, promoting education and vocational skills
7.286
Cost of the employees working on CSR
Administrative expenses
1.294
Other Donation
1. Protection of national heritage, art and culture 2. Promoting healthcare, women health, pure drinking water
1.070
Donation to Mindtree Foundation
4.7
Contribution to PMCARES Fund
20
Total CSR Expenditure
34.35
Mindtree implements its CSR initiatives via three channels. It implements directly by Mindtree, through Mindtree Foundation and through "Individual Social Responsibility" programmes undertaken by Mindtree Minds and supported by Mindtree as appropriate. It says, "Our CSR policy that guides our inclusion philosophy is operationalised through our inclusion programmes conducted by our Mindtree Foundation. Various NGOs support the work of the Mindtree Foundation, lending us their special expertise, local infrastructure and execution capabilities. External partners form an important component in the execution of such initiatives.’
The CSR Committee of the Board has Jayant Damodar Patil as its Chairperson and Apurva Purohit, Bijou Kurien and Deepa Gopalan Wadhwa as its members. The CSR Committee of the company met thrice inthe financial year 2019-20.
