This report provides a comprehensive overview of JSW Steel Limited’s Corporate Social Responsibility (CSR) spending for the fiscal year 2022-2023. JSW Steel has remained committed to fulfilling its CSR obligations, aligning its activities with the Companies Act, 2013. This report analyses the company’s performance concerning its CSR budget allocation, spending, and the efficiency of ongoing programs.
Detailed CSR Spending Analysis
Allocations and Spending
According to the sub-section (5) of Section 135 of the Companies Act, 2013, JSW Steel Limited has dutifully allocated 2% of its average net profit towards CSR activities. For the FY 2022-23, this amounted to a total budget of INR 291.03 crores.
By the end of FY 2022-23, the company has successfully utilised 83.43% (INR 242.82 crores) of the total budget. The remaining INR 48.22 crores have been deposited in the unspent CSR account, awaiting future utilisation as the ongoing projects progress towards completion.
Project Implementation
The projects undertaken by JSW Steel Limited are at various stages of implementation, with some being dependent on weather conditions and other unforeseen circumstances, which are beyond the company’s control. There are ongoing collaborations with the District Administration for some projects. Simultaneously, civil construction components of certain programs are under progress. The completion of these projects is expected in the forthcoming period as per the program design and long-term CSR strategy.
Escalation in CSR Expenditure
It is noteworthy that JSW Steel Limited has seen a steady increase in its CSR spending over the years. In FY 2017-18, the company spent INR 53 crores on CSR activities, which increased to INR 291 crores in FY 2022-23. During FY 2022-23, the company utilised INR 243 crores towards CSR expenditure, and the balance of INR 48 crores was deposited in an escrow account for future CSR spending in specified projects.
Revised CSR Policy
Following the Ministry of Corporate Affairs (MCA) notification dated January 22, 2021, in CSR Rules, 2014, the company has adopted a revised CSR policy to align with the new regulations.
Table of Important Facts
| Parameter | Value (in INR crores) |
|---|---|
| Average net profit of the company (2022-23) | 14,552 |
| 2% of average net profit (CSR budget) | 291.03 |
| Amount spent on CSR Projects (2022-23) | 242.82 |
| Unspent CSR amount (2022-23) | 48.22 |
| Amount transferred to Unspent CSR Account | 48.22 |
| Total CSR obligation for FY 2022-23 | 291.03 |
| CSR expenditure in FY 2017-18 | 53 |
| CSR expenditure in FY 2022-23 | 243 |
Analysis of Key Facts
JSW Steel Limited has demonstrated a strong commitment towards CSR by consistently increasing its CSR expenditure year on year. The company has successfully spent 83.43% of its CSR budget for FY 2022-23. It is commendable that the unspent amount is not treated as surplus but is allocated for the future implementation of ongoing projects.
The company also adopts a stringent process for project documentation, ensuring all partners’ credentials are verified, further reinforcing its dedication to transparency and good corporate governance.
Overall, the initiatives taken by JSW Steel Limited under the CSR agenda reflect the company’s commitment to giving back to society and contributing positively to sustainable development goals.
| Financial Year | Total CSR Budget (in INR crores) | CSR Expenditure (in INR crores) | Balance Deposited in Escrow (in INR crores) |
|---|---|---|---|
| 2017-18 | N/A | 53 | N/A |
| 2022-23 | 291 | 243 | 48 |
