MUMBAI (India CSR): Shivam Chemicals Limited reported nil Corporate Social Responsibility (CSR) expenditure in FY2025-26, with its annual report stating that the CSR provisions under Section 135 of the Companies Act, 2013 were not applicable to the company during the year. The disclosure means the company did not report a statutory CSR obligation, CSR projects, implementing partners, unspent CSR balance or expenditure towards CSR activities for the financial year ended March 31, 2026. The company has also disclosed nil CSR expenditure for FY2024-25, making this the second consecutive year in which no CSR spending has been reported.
The company’s statutory auditor has similarly stated that the CSR provisions of Section 135 were not applicable, and therefore CSR-related reporting under the Companies (Auditor’s Report) Order, 2020 was not required. Shivam Chemicals’ financial performance improved during FY2025-26. On a standalone basis, revenue from operations increased to Rs. 269.56 crore from Rs. 207.37 crore in FY2024-25, a growth of about 30%. Profit after tax rose to Rs. 5.05 crore, compared with Rs. 2.57 crore in the previous year.
However, profit after tax in the financial statements should not by itself be treated as the legal basis for calculating CSR applicability or the mandatory CSR budget. The Companies Act uses specified criteria, including a calculation of “net profit” under the law. Shivam Chemicals has formally stated in its annual report that it did not meet the prescribed Section 135(1) criteria for FY2025-26.
For readers, the key point is simple: the company reported business growth and higher profitability during the year, but its annual report does not record a mandatory CSR spend for either FY2024-25 or FY2025-26.
CSR Spending Trend
| Financial Year | CSR Applicability, as disclosed | CSR Expenditure |
|---|---|---|
| FY2024-25 | Not applicable under Section 135(1) | Nil |
| FY2025-26 | Not applicable under Section 135(1) | Nil |
CSR Governance Disclosure
The report contains differing disclosures on the CSR Committee:
- The corporate-information section and Directors’ Report state that the company had a CSR Committee during FY2025-26, chaired by Whole-time Director and CFO Soham Sanjiv Vasant.
- The standalone financial statement notes state that the company had not constituted a CSR Committee, citing non-applicability of Section 135.
Both statements appear in the same annual report. Since the report does not reconcile this difference, it would not be accurate to state conclusively whether the committee was constituted as a statutory requirement or retained voluntarily as a governance structure.
CSR Philosophy and Policy
The annual report does not provide a separate CSR philosophy statement, a detailed CSR policy, a list of priority social-development themes, or a CSR project portfolio. It also does not disclose an implementing agency, geographical focus, beneficiary figures, or impact assessment for FY2025-26.
The company does state more broadly that it considers risk management and sustainability integral to good corporate governance and business sustainability. However, this is not presented as a CSR policy or as evidence of CSR expenditure.
Key Financial Facts
| Particular | FY2025-26 | FY2024-25 |
|---|---|---|
| Revenue from operations | ₹269.56 crore | ₹207.37 crore |
| Profit after tax | ₹5.05 crore | ₹2.57 crore |
| Reported CSR expenditure | Nil | Nil |
| Statutory CSR applicability | Not applicable, as disclosed | Not applicable, as disclosed |
Source: Shivam Chemicals Limited Annual Report 2025-26.
