In the second wave of Corona, the industry donated less to PM Cares, but spent hundreds of crores here
This report by rating agency CRISIL states that while most of the cash spending during the first wave of Kovid-19 came through the PM-Cares fund, in the second wave the priority changed and direct support through spending on goods and services. was given priority. Companies contributed only Rs 85 crore to the PM-Cares fund in March-June 2021 during the second wave, while Rs 831 crore was contributed as help classified as ‘others’. At the same time, during the first wave, between March-May 2020, he contributed Rs 4,316 crore to the PM-Cares fund and Rs 3,221 crore as other help.
money spent on health needs
According to the report, ‘Given the severity of the second wave, equipment such as ventilators, oxygen concentrators, cylinders, testing kits, and support of healthcare infrastructure with donations of food/ration helped in the form of support – which was funded by The value cannot be determined as such.’
It said that assuming that companies’ spending was around the mandated level of two per cent of their average profit for the last three financial years, eligible companies spent Rs 22,000 crore on Corporate Social Responsibility (CSR) in FY 2020-21 While this amount was 21,231 crore in the financial year 2019-20.
According to the report, the expenditure on CSR in the financial year 2020-21 will include an expenditure of Rs 14,986 crore by over 1,700 listed companies and Rs 7,072 crore by unlisted entities, as against 1,387 listed companies in the previous financial year. 14,431 crore and 19,962 unlisted units spent Rs 6,800 crore.
The agency said that within seven years of the mandatory level of CSR expenditure being fixed through changes in the Companies Act, such expenditure has crossed the Rs 1 lakh crore mark. Of this, 40 per cent was spent during the last two financial years only. In view of the possibility of a third wave, the expenditure related to the corona epidemic may increase further.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)