Aurobindo Pharma : Annual CSR Report 2022-23

ANNEXURE-5

ANNUAL REPORT ON CSR ACTIVITIES

[Pursuant to Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) 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. 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.

2. Composition of CSR Committee:

						Number of		Number of
							meetings of
						meetings of CSR
Sl. No.		Name of Director		Designation/Nature of Directorship			CSR Committee
			Committee held
							attended during
						during the year
							the year
1		Mr. K. Nithyananda Reddy		Chairman / Executive Director		5		5
2		Mr. K. Raghunathan		Member / Independent Director	5	5
3		Dr. M. Sivakumaran		Member / Executive Director	5	4
4		Mr. P. Sarath Chandra Reddy		Member / Non-executive Director	5	2
5		Mrs. Savita Mahajan		Member / Independent Director	5	5
6		Mrs. Avnit Bimal Singh		Member / Independent Director	5	5
7		Mr. Girish Paman Vanvari		Member / Independent Director		5		5

3. The web-link(s) where 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 is available on the Company's website at: https://www.aurobindo.com/investors/disclosures-under-regulation-46/board-committees#csrThe CSR Policy is available on the Company's website at: https://www.aurobindo.com/api/uploads/CSR-policy.pdf

The various CSR projects and activities approved by the Board for the financial year 2023-24 is 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/

192 Integrated Annual Report 2022-23

Particulars			Impact assessment study - Summary (2022-23)
Name of Independent		Participatory Rural Development Initiatives Society	Participatory Rural Development Initiatives	Poverty Learning Foundation, Hyderabad
agency conducting		(PRDIS), Hyderabad	Society (PRDIS), Hyderabad
Impact assessment
Scope of Project		Infrastructure Development in 20 Schools and 2	Establishment of Sundarayya Skill	Establishment of Jwala Gutta Academy of
		Colleges in Pileru & K.V. Palli mandals of Chittoor	Development Centre, Vaddeswaram	Excellence, Hyderabad to equip with Gym
		district, Andhra Pradesh.	village, Tadepalli Mandal, Guntur District,	and other related infrastructure (Co-sponsor),
			Andhra Pradesh.	Telangana.

Key highlights of Impact

(Through evaluation criteria: Relevance, Coherence, Effectiveness, Efficiency, Impact and Sustainability)

• Increase in enrolment rate (30%) of children/ students in the schools and colleges.
• Better educational performance in terms of increased pass rate (40%) and increased exam score (20%).
• Improved teaching efficiency of the staff due to better infrastructure.
• Increased hygiene and health due to gender specific toilets and purified drinking water facilities.
• Parents get motivated to send their children to government schools.

• Improvement in quality of training due to best facilities created in skill development centre.
• An increase in knowledge levels & skills of trainees as per structured survey.
• Improved employment opportunities (63% employed and 37 % self- employed) due to acquired skills and thus an increase in their income levels.

• Increased aspirations among 83% of the trainees, particularly senior-level trainees.
• Due to regular mentoring and monitoring and individual-specific attention by trainers, it is giving positive trends in building endurance and strength for their game, thus improving confidence levels of trainees.
• The gym's impact is visible as most trainees (78%) have explained the change in their fitness - flexibility and muscle strength and reduced risk of sports injuries.

Promise to performance 193

Recommendations	• To provide additional facilities like computers/ •	To explore convergence opportunities	• Need to explore funding opportunities
	digital learning tools, School compound	with identified state, national	for necessary operational costs to ensure
	wall, sports equipment, water connectivity	level bodies like AP State Skill	sustainability of the academy.
	etc. which are not being covered under	Development Corporation, National	• Sustainability can be further assessed as
	government schemes.	Bank for Agriculture and Rural
	the trained players enter the national level
		Development (NABARD), DDU-GKY of
		competitions, thus creating more visibility and
		Govt of India etc.
		growth for the academy.

• To conduct rural campaigns in surrounding areas for effective participation and improved enrolment.
• To introduce new courses in Farm, Non-Farm and other sectors based on skill gap analysis and employment potential.

5. (a) Average net profit of the Company as per sub-section (5) of section 135 : ` 27,721.93 million

1. Two percent of average net profit of the Company as per sub-section (5) of section 135 : ` 554.44 million
2. Surplus arising out of the CSR Projects or programmes or activities of the previous financial years : ` 8.47 million
   (Surplus amount is the interests realized on unspent CSR funds of previous years lying in the bank - ` 5.82 million+` 2.65 million)
3. Amount required to be set-off for the financial year, if any: Nil
4. Total CSR obligation for the financial year [(b)+(c) -(d)] :` 562.91 million

Statements Financial

Reports Statutory

Report Integrated

6. (a) Amount spent on CSR Projects (both Ongoing Projects and other than Ongoing Projects): ` 341.67 million

1. Amount spent in Administrative Overheads: ` 25.15 million
2. Amount spent on Impact Assessment: ` 1.05 million
3. Total amount spent for the Financial Year [(a)+(b) + (c)]: ` 367.87 million
4. CSR amount spent or unspent for the Financial Year:

Total Amount Spent for the Financial Year. (` in millions)

367.87

Amount Unspent (in `)

Total Amount transferred to Unspent CSR	Amount transferred to any fund specified under Schedule VII
Account as per section 135 (6)	as per second proviso to section 135 (5).
Amount	Date of transfer	Name of the Fund	Amount	Date of transfer
(` in millions)
186.57	27.04.2023	-	-	-

Note: Out of the surplus amount of ` 8.47 million, an amount of ` 1.5 million spent during the financial year 2022-23 and balance amount of ` 6.97 million is lying in the respective unspent CSR Accounts of previous years to be spent in succeeding financial years.

The total amount spent for CSR activities during the financial year 2022-23 was ` 762.94 million which consists of

1. ` 367.87 million spent from the total CSR obligation for the financial year 2022-23, ` 391.86 million spent from the unspent CSR amount for the previous years and ` 3.21 million spent out of the interest received on the CSR unspent amounts of previous financial years transferred to separate Bank accounts.

2. Excess amount for set-off, if any:

Sl. No.		Particular			Amount
			(` in million)
(i)		Two percent of average net profit of the company	as per section 135 (5)		554.44
(ii)		Total amount spent for the Financial Year		367.87
(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	8.47
		any
(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:

Preceding

Sl. No. Financial

Year(s)

Amount	Balance
transferred to	amount in	Amount spent
Unspent CSR	Unspent CSR	in the reporting
Account under	Account under	Financial Year
section 135 (6)	section 135(6)	(in ` in million)
(` in million)	(` in million)

Amount transferred to any fund		Amount
specified under Schedule VII as		remaining to
per second proviso to section 135		be spent in the		Deficiency,
(5), if any.		succeeding
		if any
			financial
Amount
Date of transfer		years.
(` in million)
		(in ` in million.)

1.		2020-21		392.20		154.33		140.99		---	---		13.34		---
2.	2021-22	272.40	272.40	250.87	---	---	21.53	---
3.	2022-23	186.57	186.57	---	---	---	186.57	---
		TOTAL		851.17		613.30		391.86		---	---		221.44		---

194 Integrated Annual Report 2022-23

1. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No
2. 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 a separate Unspent CSR Account opened for this purpose by the Company.

Sd/-	Sd/-
K. Nithyananda Reddy	K. Nithyananda Reddy
Vice Chairman & Managing Director	Chairman CSR Committee
DIN: 01284195	DIN: 01284195
Place: Hyderabad
Date: May 27, 2023

Integrated Report Statutory Reports Financial Statements

Promise to performance

195