CSR: L&T Finance Limited spends Rs. 16 Cr towards social projects in FY 2021-22

The amount recognised as expense in the Statement of Profit and Loss on CSR related activities is Rs. 5.48 crore.

New Delhi (India CSR): During FY22, L&T Finance Limited worked towards inclusive social transformation of rural communities through its CSR – Corporate Social Responsibility initiatives. During the year, L&T Finance Limited set-off the excess amount spent to FY21 (i.e., amount spent over and above the amount required to be spent on CSR) of R 10.93 Cr against the eligible CSR budget of FY22.

The total CSR spend for the Company was R 16.41 Cr. In FY22, the Company has spent Rs 7.21 Lakh more than the CSR obligation in FY22. Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year was Rs. 16.34 crore (previous year: Rs. 17.05 crore).

The amount recognised as expense in the Statement of Profit and Loss on CSR related activities is Rs. 5.48 crore (previous year: Rs. 11.78 crore)

Opening excess amounting to Rs. 2.75 crore pertaining to PM Cares fund cannot be utilized as per Government clarification and hence reduced from opening balance of Rs. 13.68 crores, the company annual report said. The Company aims to promote inclusive social transformation of the rural communities by nurturing and creating opportunities for sustainable livelihoods.

The CSR efforts of the Company closely align with the Sustainable Development Goals (SDGs), particularly, ‘No Poverty’ (SDG 1), ‘Gender Equality’ (SDG 5), ‘Sustainable Cities and Communities’ (SDG 11), ‘Climate Action’ (SDG 13) and ‘Partnership for the Goals’ (SDG 17).

The CSR interventions follow a project-based accountability approach, emphasizing on the principles of ‘Social impact’, ‘Scale’ and ‘Sustainability’ to create shared value for all stakeholders. The key projects are undertaken in focused areas of interventions, viz, Digital Financial Inclusion, Disaster Management and other initiatives.

“Our focus is on creating value for rural indigent communities, which desire a secure future. Our social responsibility theme and commitment is in line with the United Nation’s global development agenda of Sustainable Development Goals (SDGs) particularly, ‘No Poverty’ (SDG 1), ‘Gender Equality’ (SDG 5), ‘Sustainable Cities and Communities’ (SDG 11) ‘Climate Action’ (SDG 13) and ‘Partnership for the goals’ (SDG 17).”, the company said

“Our key initiatives are woven around sustainable livelihoods of rural communities facilitated by focused areas of intervention – Digital Financial Inclusion, Disaster Management and other initiatives. We implement the CSR projects as a collaborative effort between various companies within L&T Financial Services, through partnership with organizations mandated under Rule 4(1) of the Companies (CSR Policy) Rules, 2014.”, company annual report said.

CSR Approach

A project-based accountability approach is adopted, emphasizing on the three aspects of Social impact, Scale and Sustainability. Baseline and end line assessments are carried out for each project with clearly defined measurable results.

Monitoring

A three-tier structure exists with the CSR & ESG Committee formulating & recommending the annual action plan to the Board, in line with the CSR vision of the Company. The CSR team conducts periodic review of the projects and documents the progress. The Board verifies that the CSR funds have been utilised for the projects as approved by it.

The CSR projects (including Digital Sakhi) are implemented as a collaborative effort between various companies within L&T Financial Services. Digital Sakhis not only play the role of trusted advisors to Women Entrepreneurs, but also to the larger rural community, amongst other things, by educating and enabling access to benefits of government entitlements and schemes. The efforts of Digital Sakhis have been recognised by the state governments and local bodies as well, as they have conducted dedicated sessions for the community to promote financial literacy at the behest of panchayats and worked hand-in-hand with various public departments to spread awareness and increase adoption of government schemes.

The impact created by the Company can be observed across multiple themes of women empowerment over the course of 5 years, the veil that shadowed the faces of the women have been lifted, the barriers that confined them to their homes have been broken, the biases they dealt with have been crushed and more than 450 project villages now are ushered by confidence and smiles of Digital Sakhis. Company’s contribution is highlighted hereinafter.

Outreach

The Digital Sakhi project, which was initiated in 2017, has consistently expanded its geographical footprint to 5 states across the country. In FY22, the Company supported the Digital Sakhi project in Odisha, creating a cadre of 100 Digital Sakhis, upskilling 1000 Women Entrepreneurs and reaching out to more than 1.18 Lakh community members.

Creating sustainable livelihood

The Company continued its efforts to build and expand avenues of sustainable livelihood for the Digital Sakhis and the Women Entrepreneurs. The project has focused on enabling access to credit, support services from the government and enhancing capacities and capabilities to achieve a better standard of living