MRF Tyres spends Rs 66 Cr on CSR activities including carry forward budget of Rs 35 Cr

New Delhi, 8 December 2020: India’s largest tyre manufacturer MRF Tyres spent Rs 66.35 crore on its CSR activities in 2019-20 which includes Rs 35 crore from the carry forward amount from previous years. It prioritised healthcare, vocational skills and many others while spending its CSR budget.

Average net profit of the Company for last three financial years stood at Rs 1,560.89 crores, thus, it had to spent Rs 31.22 crores (two per cent of the average net profit of the last three financial years) on its CSR activities. Along with this, the company spent Rs 35 crores, the unspent amount of its CSR commitment from previous years. Here are the details:

Source: Company’s Annual report

It says, "As per Section 135 of the Companies Act,2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceeding three financial years on corporate social responsibility (CSR) Activities."

As per it, a CSR Committee has been formed by the Company as per the Act. During the financial year ended 31st March 2020, the Company has incurred an amount of Rs 66.35 crores representing ` 31.22 crores for the current financial year and Rs 35.13 crores towards shortfall in CSR spending of earlier years.

Under its CSR activities, the MRF Tyres prioritised healthcare, education, rural development, provide safe drinking water, skill development, sports training and measures for reducing inequalities faced by socially & economically backward groups, environment protection.

Its CSR committee includes K M Mammen  who is the chairman while Arun Mammen, Rahul Mammen Mappillai and Ranjit I Jesudasen serves as member of the committee.

Top five CSR programmes of the company