ANIIDCO: Executing CSR with corporate zeal

Report by: 
Port Blair
25 Oct 2018

For ANIIDCO (Andaman and Nicobar Islands Integrated Development Corporation Limited), it’s not only about expanding business and generating big profits. Unlike big corporates that view Corporate Social Responsibility (CSR) as just another source of pressure or passing fad, the Corporation has performed exceedingly in philanthropic activities and partnered with other government agencies making CSR central to its overall strategy to strengthen businesses while contributing to the society at the same time. With a turnover of Rs 306 crore and profit of Rs 19.93 crores earned in the financial year 2017-18, ANIIDCO spent the mandated share of 2 percent under CSR for social work helping the overall development of these islands.
Fully sentient to the importance of CSR, the Corporation spent an amount of Rs 58 lakh to step up implementation of some key schemes of the Union Government. Though the Municipal Council, ANIIDCO disbursed an amount of Rs 30 lakh for construction of Community Toilets in different parts of the city, while another 2 lakh was disbursed to the Council under the Swachh Bharat Mission. To sponsor the initiative of the Municipal Council, Collect Plastic Win Money, the Corporation spent an amount of Rs 12 lakh under CSR. Though SOVTECH, the Corporation sponsored a series of skill development training programmes and contributed an amount of Rs 8 lakh under the Skill India mission. An amount of Rs 56,500/- was also granted to the Juvenile Justice Board to support schemes for child welfare implemented by the Board.
“Much before Corporate Social Responsibility (CSR) found a place in corporate lexicon, ANIIDCO has been contributing for the society here since its inception. CSR means investing a part of one’s profit beyond business for the larger good of society. The Corporation carried forward this philosophy and strives to ensure welfare of the most needy sections of the society. Our partners in development of the society are government bodies, district authorities and the end beneficiaries. The Corporation earmarks funds for some of the flagship schemes of the government and ensures its proper utilization,” informed an official of ANIIDCO, who didn’t wish to be named.
According to Section 135 of the new Companies Act, 2013, companies that had annual revenue exceeding Rs1,000 crore, or market capitalisation of Rs 500 crore, or profit of Rs 5 crore or more per annum have to contribute at least 2% of their profit as CSR. The Rules also clearly outline fields where companies could make their CSR contributions. In October 2014, the Ministry of Corporate Affairs (MCA) expanded the list to include contributions to Swachh Bharat Kosh and Clean Ganga Fund under CSR. The uptake of CSR programmes by corporates over the last three years has been encouraging. Data show that expenditure on CSR has been growing consistently since 2014.According to an assessment on the Ministry of Corporate Affairs (MCA) website, the cumulative spend on CSR by 5,097 companies exceeded Rs9,800 crore in 2015-16, the latest period for which data are available on the MCA website, compared with Rs8,803 crore in the previous year. To put this in perspective, Rs 9,800 crore exceeds the money that the Unique Identification Authority of India has spent over eight years to issue 116 crore Aadhaar numbers. What is new, and even more encouraging, is that increasingly CSR leaders are talking about ways to devise CSR strategy that is aligned with their core business and not just contributing to CSR as a matter of compliance.