Annexures
Annexure - 5
ANNUAL REPORT ON CSR ACTIVTIES
(Pursuant to Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibilities) Rules, 2014 as amended)
1. Brief outline of the CSR Policy of the Company:
The CSR Policy, which encompasses the Company's philosophy for defining its social responsibility and lays down the guidelines and mechanism for undertaking socially useful programmes for welfare & sustainable development of the community at large. This Policy shall apply to all CSR initiatives and activities taken up by the Company, for the benefit of society as per approach and direction given by the Board of Directors of the Company. This Policy and the operational guidelines are subject to and pursuant to the provisions of the Companies Act, 2013 (Act) and the schedules, rules and regulations made thereunder. The CSR Activities of the Company are being implemented through Aurobindo Pharma Foundation, a Section 8 company and a wholly owned subsidiary of the Company.
2. Composition of CSR Committee:
Sl. | Designation/ | Number of meetings of | Number of meetings | |||||
Name of Director | CSR Committee held | of CSR Committee | ||||||
No. | Nature of Directorship | |||||||
during the year | attended during the year | |||||||
1 | Mr. K. Nithyananda Reddy | Chairman | 5 | 5 | ||||
2 | Mr. K. Raghunathan* | Member | 5 | 5 | ||||
3 | Mr. P. Sarath Chandra Reddy | Member | 5 | 4 | ||||
4 | Mrs. Savita Mahajan | Member | 5 | 5 | ||||
5 | Mr. Girish Paman Vanvari | Member | 5 | 4 | ||||
6 | Dr. (Mrs.) Deepali Pant Joshi | Member | 1 | 1 | ||||
7 | Dr. M. Sivakumaran** | Member | 2 | 2 | ||||
8 | Dr. (Mrs.) Avnit Bimal Singh*** | Member | 4 | 4 |
- Mr. K. Ragunathan retired as an Independent Director of the Company on close of business hours of March 31, 2024, upon completion of his second term as an Independent Director of the Company. Consequently, he also ceased to be the Member of CSR Committee with effect from April 1, 2024.
- Dr. M. Sivakumaran resigned as a Whole-time Director and Director of the Company w.e.f. August 25, 2023. He attended all the 2 meetings of CSR Committee held during his tenure in the financial year 2023-24.
- Dr. (Mrs.) Avnit Bimal Singh resigned as an Independent Director of the Company w.e.f. February 11, 2024. She attended all the 4 meetings of CSR Committee held during her tenure in the financial year 2023-24.
Mr. Mangalam Ramasubramanian Kumar has been appointed as a Non-executive Independent Director of the Company with effect from April 1, 2024. He has also been appointed as a member of CSR Committee with effect from April 1, 2024.
3. The web-link(s) where the composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed on the website of the Company:
Composition of the CSR Committee shared above, is available on the Company's website at:
https://www.aurobindo.com/investors/disclosures-under-regulation-46/board-committees#csr
The CSR Policy is available on the Company's website at:
https://www.aurobindo.com/api/uploads/CSR-policy.pdf
The details of various CSR projects and activities approved by the Board of Directors of the Company for the financial year 2024-25 are available on the Company's website at:
https://www.aurobindo.com/sustainability/annual-action-plan/
4. The executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014
The Company takes cognizance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and has initiated impact assessment of CSR projects through independent agencies. The reports are available on the Company's website at https://www.aurobindo.com/sustainability/impact-assessment-reports-csr-projects/
216
Aurobindo Pharma Limited | Integrated Annual Report 2023-24
IMPACT ASSESSMENT STUDY- SUMMARY (2023-24)
Name of the independent agency conducting impact assessment
Anusandhan Social Consultants | Anusandhan Social |
Consultants | |
Anusandhan Social Consultants | Anusandhan Social Consultants |
Driving Sustainable Growth: Develop | Deliver | Excel 217
Scope of the project
Key highlights of the impact Evaluated using the REESI framework (Relevance, Effectiveness, Efficiency, Sustainability, Impact) of the OECD (Organisation for Economic Co-operation and Development)
Provided world class equipment for the complete hospital, bus
- ambulance to the newly established Pushpagiri Vitreo Retina Institute (PVRI), Kadapa district, Andhra Pradesh state
- Majority of patients are from socio economically challenged backgrounds (99.3%), with a significant portion of them being elderly patients aged 60 and above (51%).
- Following treatment/ surgery, 98.5% patients have reported a transformative enhancement of their visual acuity, quality of life, and overall well-being.
- Furthermore, 98.5% of the patients praised the various aspects of treatment, including.
- Quality of care
- Empathetic conduct of hospital staff
- Availability of transport vehicles (particularly for patients from remote areas), and
- Comprehensive nature of post-operative services.
Establishment of centralised kitchen with kitchen equipment & dining hall at Dr. B.R. Ambedkar University, Etcherla, Srikakulam district, Andhra Pradesh state
- Around 72.7% of the hostelers are regularly using the canteen facilities.
-
There was a marked improvement in the operational efficiency of
the kitchen and dining hall, with mealtimes being aligned with their class schedules, acknowledged by 68.6% of the students. - 84.5% of the students acknowledged that the new centralised kitchen has significantly reduced waiting times and ensured timely meals.
- The dining hall has enabled the students to gather in one place during mealtimes, which has improved social interactions and fostered a sense of community among the students.
Establishment of centralised kitchen in collaboration with Hare Krishna Movement Charitable Foundation in Mahbubnagar district, Telangana state
Student & Teacher perspectives:
- Majority of the students expressed high satisfaction with the meals provided by the kitchen in terms of food quality (93.3%), taste (86.5%), and portion sizes (95.2%).
- 93.8% of students reported that the meals led to an improvement in their energy and focus levels.
- 98% of students agreed that the meals have increased their motivation to attend school and meet their nutritional needs.
- 100% of teachers observed an increase in student participation, concentration, academic performance, and learning outcomes following the regular distribution of meals through the kitchen.
Government established (Annapurna) Canteen Users perspectives:
- The canteen users expressed high satisfaction with various aspects of the canteen facilities such as high quality of food (100%), variety of meals (88.3%), pricing (85%), staff behaviour (95%), and hygiene (88.3%).
- Furthermore, 93.3% of the canteen users acknowledged that the meals fulfilled their dietary requirements with 78.3% observing that their health and well-being has improved.
- Around 81.7% of the canteen users agreed that the canteen has enhanced their food security and is promoting healthier eating habits among 70% of them.
Establishment of lift irrigation facility in partnership with Ramky Foundation at Mojerla, Wanaparthy district, Telangana state
- This project has been effective in addressing the following:
- Addressing Water Scarcity: The project alleviates severe water scarcity challenges and offers a dependable water source for agriculture.
- Crop Yield Enhancement: The lift irrigation facility has boosted water availability which has increased crop yield, bringing a shift to double cropping, and providing economic relief for the farmers.
- Economic Upliftment: With increased cropping intensity, crop diversification, and reduced irrigation costs, have led to 20-30% increase in the income of local farmers, contributing to their economic stability.
- Community Involvement: Following the project, a Farmer Water Committee was formed for the management and maintenance of the project, which has ensured a sense of community ownership and sustainability of the project.
Integrated Report Statutory Reports Financial Statements
218 Aurobindo Pharma Limited | Integrated Annual Report 2023-24
Name of the independent agency conducting impact assessment
Recommendations to implementing partners/committees formed by beneficiaries
Anusandhan Social Consultants | Anusandhan Social | Anusandhan Social Consultants | ||||
Consultants | ||||||
• Expand scope of the project | • | Strengthen | • Coordinate with the government | |||
through eye camps for | sustainability of the | authorities to further improve the | ||||
students and enhance | project by focusing | Annapurna canteen facilities. | ||||
communication through | on waste reduction, | |||||
pictorial charts for patients | responsible sourcing | |||||
with limited literacy. | of ingredients | |||||
• | Bolster awareness | • | Enhance | |||
campaigns to provide | maintenance | |||||
beneficiaries with a | practices and | |||||
more comprehensive | conduct regular | |||||
understanding of the | inspections for food | |||||
intervention's processes, | safety to ensure a | |||||
services, and long- | hygienic kitchen | |||||
term advantages. | ||||||
• | Conduct social impact | |||||
assessment (by Pushpagiri | ||||||
Vitreo Retina Institute) to |
further quantify the impact and communicate the far- reaching societal benefits of the intervention.
Anusandhan Social Consultants
- Promote water conservation practices such as rainwater harvesting and continue educating and encouraging crop diversification among farmers.
- Water Committee and farmers should work together and create mechanism for covering operational and maintenance costs as well as engage the Lift Operator in the operation and maintenance of the infrastructure.
Annexures
5. (a) Average net profit of the Company as per sub-section (5) of section 135: ₹25,125 million
- Two percent of average net profit of the company as per sub-section (5) of section 135: ₹502.50 million
- Surplus arising out of the CSR Projects or programmes or activities of the previous financial years: ₹2.54 + ₹0.52 + ₹7.93 = ₹10.99 million
(Surplus amount is the interests realised on unspent CSR funds of previous year (FY 2022-23 unspent account and TDS amount received) lying in the bank, which has been shifted to newly opened unspent account FY 2023-24)
- Amount required to be set-off for the financial year, if any: Nil
- Total CSR obligation for the financial year [(b)+(c) -(d)]: ₹513.49 million
6. (a) Amount spent on CSR Projects (both Ongoing Projects and other than Ongoing Projects): ₹189.23 + ₹159.83 = ₹349.06 million
- Amount spent in Administrative Overheads: ₹22.72 million
- Amount spent on Impact Assessment, if applicable: ₹0.75 million
- Total amount spent for the Financial Year [(a)+(b) +(c)]: ₹372.52 million
Integrated Report | Statutory Reports | Financial Statements | ||
(e) CSR amount spent or unspent for the Financial Year:
Amount Unspent (₹ million)
Total Amount transferred to | |||
Total Amount Spent for the Financial Year. | Unspent CSR Account as per | ||
(in ₹) (in millions) | section 135 | (6) of the Act | |
Amount | Date of | ||
(₹ million) | transfer | ||
372.52 | 140.97 | 23.04.2024 |
Amount transferred to any fund specified under
Schedule VII as per second proviso to section 135 (5)
Name of the | Amount | Date of |
Fund | transfer | |
--- | --- | --- |
Note: Total amount spent in FY 2023-24 is ₹554.35 million which also includes the amount spent from Unspent CSR account for FY 2020-21, FY 2021-22 & FY 2022-23 aggregating to ₹181.83 million. The surplus amount of ₹7.93 million realised in Unspent accounts of FY 2020-21 & FY 2021-22 has been spent in FY 2023-24, and it has been spent on other-than ongoing CSR projects.
(f) Excess amount for set-off, if any:
Sl. | Particular | Amount | ||
No. | (₹ million) | |||
(i) | Two percent of average net profit of the company as per section 135 (5) | 502.50 | ||
(ii) | Total amount spent for the Financial Year | 372.52 | ||
(iii) | Excess amount spent for the financial year [(ii)-(i)] | -- | ||
(iv) | Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any | 10.99 | ||
(v) | Amount available for set off in succeeding financial years [(iii)-(iv)] | -- |
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
Amount | Balance | Amount | ||||||
transferred to | amount in | spent in the | ||||||
Sl. | Preceding | Unspent CSR | Unspent CSR | reporting | ||||
No. | Financial Year | Account under | Account under | Financial | ||||
section 135 (6) | section 135(6) | Year | ||||||
(₹ million) | (₹ million) | (₹ million) |
Amount transferred to any fund | Amount | |||
specified under Schedule VII as per | remaining to | |||
section 135 (5), if any. | be spent in the | |||
succeeding | ||||
Name of | Amount | Date of | ||
financial years | ||||
the Fund | (₹ million) | transfer | (₹ million) | |
Deficiency if any
1. | 2020-21 | 392.20 | 13.34 | 13.34 | ---- | ---- | ---- | ---- | ---- | |||||||||
2. | 2021-22 | 272.40 | 21.53 | 21.53 | ---- | ---- | ---- | ---- | ---- | |||||||||
3. | 2022-23 | 186.57 | 186.57 | 146.94 | ---- | ---- | ---- | 39.63 | ---- | |||||||||
4. | 2023-24 | 140.97 | 140.97 | ---- | ---- | ---- | ---- | 140.97 | ---- | |||||||||
TOTAL | 992.14 | 362.41 | 181.81 | 180.60 | ---- |
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:
Yes
No
If Yes, enter the number of Capital assets created/acquired: 2
Driving Sustainable Growth: Develop | Deliver | Excel
219
Annexures
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:
- (2)
Short particulars of the | |
Sl. | property or asset(s) |
No. | [including complete address |
and location of the property] |
(3) | (4) | (5) | (6) | |||||
Pincode | Amount | Details of entity/Authority/beneficiary of the registered | ||||||
owner | ||||||||
of the | Date of | of CSR | ||||||
CSR | ||||||||
property | amount | |||||||
creation | Registration | |||||||
or | spent | Name | Registered address | |||||
Number, if | ||||||||
asset(s) | (₹ million) | |||||||
applicable | ||||||||
1 | 4-wheeler vehicle(car) to | 500 032 | 31.07.2023 | 2.99 | CSR00017111 | Aurobindo | Aurobindo Pharma | |||||||
be used for travelling to | Pharma | Foundation, Galaxy | ||||||||||||
CSR project sites to monitor | Foundation | Towers, Floors 22-24, | ||||||||||||
projects' progress at various | Plot No. 1, Sy. No. | |||||||||||||
locations | 83/1, Hyderabad | |||||||||||||
Address of asset: Aurobindo | Knowledge City, | |||||||||||||
Raidurg Panmaktha, | ||||||||||||||
Pharma Foundation, Galaxy | ||||||||||||||
Hyderabad, | ||||||||||||||
Towers, Floors 22-24, Plot No. | ||||||||||||||
Telangana, 500 032 | ||||||||||||||
1, Sy. No. 83/1, Hyderabad | ||||||||||||||
Knowledge City, Raidurg | ||||||||||||||
Panmaktha, Hyderabad, | ||||||||||||||
Telangana, 500 032 | ||||||||||||||
2 | 4-wheeler vehicle(car) to | 500 032 | 31.08.2023 | 1.20 | CSR00017111 | Aurobindo | Aurobindo Pharma | |||||||
be used for travelling to | Pharma | Foundation, Galaxy | ||||||||||||
CSR project sites to monitor | Foundation | Towers, Floors 22-24, | ||||||||||||
projects' progress at various | Plot No. 1, Sy. No. | |||||||||||||
locations | 83/1, Hyderabad | |||||||||||||
Address of asset: Aurobindo | Knowledge City, | |||||||||||||
Raidurg Panmaktha, | ||||||||||||||
Pharma Foundation, Galaxy | ||||||||||||||
Hyderabad, | ||||||||||||||
Towers, Floors 22-24, Plot No. | ||||||||||||||
Telangana, 500 032 | ||||||||||||||
1, Sy. No. 83/1, Hyderabad |
Knowledge City, Raidurg
Panmaktha, Hyderabad,
Telangana, 500 032
(All fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/Gram panchayath are to be specified and also the area of the immovable property as well as boundaries)
9. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per sub- section (5) of section 135:
Since the projects are of long-term nature, the total amount committed to some of the projects was not spent during the year, but such unspent amount related to on-going projects has been transferred to separate Unspent CSR Account opened for this purpose by the Company.
K.Nithyananda Reddy | K.Nithyananda Reddy |
Vice Chairman & Managing Director | Chairman of CSR Committee |
DIN: 01284195 | DIN: 01284195 |
Place: Hyderabad | |
Date: May 25, 2024 |
220
Aurobindo Pharma Limited | Integrated Annual Report 2023-24