Telecom Giant Prioritizes Veterans’ Welfare While Navigating Financial Revival in FY 2024–25
NEW DELHI (India CSR): In a year marked by a major financial turnaround and India’s rapid digital transformation, ITI Limited, the country’s oldest public sector telecom enterprise, reaffirmed that national service stands above profit. Despite recording a negative average profit for the past three years—which meant no statutory Corporate Social Responsibility (CSR) obligation—ITI Limited voluntarily contributed Rs 2.00 lakhs to the Armed Forces Flag Day Fund in FY 2024–25.
This conscious act of goodwill highlights the company’s unwavering commitment to veterans, war widows, and defence families, even amid its own recovery phase. While many corporates equate CSR with compliance, ITI’s gesture stands out as a statement of values—patriotism, empathy, and responsibility. Founded in 1948, the company continues to serve as a cornerstone in India’s telecom and defence ecosystem, proving that true corporate citizenship lies in giving back to those who have given their all for the nation.
Table: ITI Ltd – CSR Spending Report FY 2024–25
| Particulars | Details |
|---|---|
| Financial Year | 2024–25 |
| Average Net Profit (as per Section 135(5)) | Rs 341.12 crore (Loss) |
| Statutory CSR Obligation (2%) | Not Applicable (Negative) |
| Actual CSR Expenditure (Voluntary) | Rs 2.00 lakhs |
| Purpose | Contribution to Armed Forces Flag Day Fund |
| Beneficiary Organization | Kendriya Sainik Board, New Delhi |
| Focus Area | Welfare of Armed Forces Veterans and Families |
| CSR Committee Meeting Held | August 12, 2024 |
| CSR Committee Status | Not Constituted (CSR spend below Rs 50 lakh threshold) |
| Turnover (FY 2025) | Rs 4,323 crore (Highest in 10 years) |
| Loss After Tax (FY 2025) | Rs 233 crore |
| Order Book (March 2025) | Rs 16,180 crore |
| Employee Welfare Expenditure | Rs 25.91 crore |
| Medical Expenses (Employee Healthcare) | Rs 6.20 crore |
| Skill Development Trainees | 1,460 (Across Units) |
| Key Social Contribution Theme | National Service and Veteran Welfare |
| Compliance Status | 100% Transparent & Voluntary |
CSR Obligation: When Responsibility Surpasses Requirement
Under Section 135 of the Companies Act, 2013, companies with positive average net profits over the past three financial years are required to allocate 2% of that average towards CSR. However, for ITI Limited, this obligation turned out to be negative due to accumulated losses.
The company’s average net profit for the preceding three financial years stood at (Rs 341.12 crore) (i.e., a loss of Rs 34,112.34 lakhs). Consequently, ITI Limited had no statutory CSR obligation for FY 2024–25. Despite this, the company chose to voluntarily contribute Rs 2.00 lakhs to a national cause — an act rooted in moral duty rather than legal compulsion.
This decision, recorded in the CSR disclosures, reflects the organization’s core value of functioning in a “Responsible Manner”, ensuring that business operations and social impact remain intertwined even during financial recovery.
Supporting the Nation’s Defenders: Armed Forces Flag Day Fund
The entire Rs 2.00 lakh CSR spend was contributed to the Armed Forces Flag Day Fund (AFFDF)—a national initiative managed by the Kendriya Sainik Board, under the Ministry of Defence, Government of India.
Purpose and Impact of the Fund:
The AFFDF supports:
- Welfare of ex-servicemen, war widows, and dependents
- Rehabilitation of disabled veterans
- Education of children of martyrs and defence personnel
ITI’s contribution was made directly to the Kendriya Sainik Board, New Delhi, ensuring complete transparency and impact traceability. The fund is recognized under Schedule VII (vi) of the Companies Act, 2013, which classifies welfare measures for armed forces veterans and their families as an eligible CSR activity.
This modest but meaningful gesture reinforces ITI’s historical connection with national security infrastructure—dating back to its inception in 1948, when it was established to serve India’s strategic communications and defence needs.
Governance, Oversight, and CSR Compliance
Corporate transparency forms the backbone of ITI Limited’s governance framework. Although CSR spending for FY 2024–25 was below Rs 50 lakhs, thereby exempting the company from constituting a full CSR committee under the law, it nonetheless maintained oversight and procedural compliance.
A CSR Committee meeting was held on August 12, 2024, to finalize the voluntary spending decision.
As per the company’s Annual Report:
- CSR Committee (when constituted): comprised Board members responsible for policy formation, review, and alignment with statutory provisions.
- CSR Policy: focused on welfare, education, environment, and national service initiatives.
- Implementation: Direct contribution, verified and approved by the Board, with clear beneficiary linkage (AFFDF).
This procedural rigor demonstrates that ITI’s voluntary CSR contributions are not symbolic; they’re governed with the same accountability and transparency as mandatory allocations.
Employee Welfare: CSR Beyond the Mandate
While the official CSR spend stood at Rs 2.00 lakhs, ITI’s broader welfare activities far exceeded this value—underscoring the organization’s people-first philosophy.
Health and Medical Support
The company’s Bengaluru Plant continues to operate a full-fledged hospital for employees, retirees, and their families.
In FY 2024–25, the company spent approximately Rs 6.20 crore (Rs 620 lakhs) on medical facilities, ensuring accessible healthcare for its workforce.
Employee Amenities
ITI incurred Rs 25.91 crore (Rs 2,591 lakhs)** in total revenue expenditure on amenities**, including township upkeep, canteens, transportation, and welfare facilities across its multiple units in Bengaluru, Rae Bareli, Naini, and Mankapur.
Skill Development and Education
The Employee Development Centre (Mankapur Unit) trained over 1,460 individuals, including students from Industrial Training Institutes (ITIs).
Programs such as On Job Training (OJT) and Course on Computer Concepts (CCC) certifications generated around Rs 10 lakhs in revenue—an example of how CSR and business synergies can strengthen community employability.
Financial Revival: CSR Amidst Corporate Transformation
FY 2024–25 marked a significant turnaround year for ITI Limited. Despite ongoing restructuring, the company achieved its highest turnover in 10 years — Rs 4,323 crore, representing strong operational momentum.
Key Highlights from FY 2024–25:
- Revenue from Operations: Rs 4,323 crore
- Loss After Tax: (Rs 233 crore) — narrowing from previous years.
- Order Book: Rs 16,180 crore as of March 31, 2025.
- BSNL 4G Rollout Contribution: Rs 2,044 crore in recognized revenue.
- BharatNet Phase III Projects: Over Rs 7,000 crore in secured value.
- Projected Order Book (as of Aug 2025): Rs 19,000 crore+.
These achievements demonstrate ITI’s vital role in advancing India’s Digital Bharat Mission, enabling secure telecom infrastructure, defence communication systems, and indigenous technology manufacturing—all of which indirectly serve as massive social-impact programs through nation-building.
A Broader Vision: CSR Through Nation-Building
While ITI’s direct CSR spending appears modest, its core business operations inherently contribute to large-scale social progress:
- Digital Inclusion:
Through the BharatNet project, ITI extends broadband connectivity to rural and remote villages—bridging the digital divide for millions. - Defence Communications:
Under the ASCON IV project, ITI manufactures strategic communication equipment for the Indian Army—strengthening national security infrastructure. - Skill Ecosystem:
Its training programs enhance technical skills and job readiness among youth, supporting India’s skilling mission. - Environmental Commitment:
ITI’s facilities actively pursue energy efficiency and e-waste management goals in line with India’s sustainable manufacturing vision.
In this sense, ITI’s social responsibility transcends cheque-book CSR—it is embedded in the company’s operational DNA.
You Learn: Honouring Service Beyond Compliance
For ITI Limited, FY 2024–25 was not merely a financial recovery year; it was a reaffirmation of values. By contributing Rs 2.00 lakhs to the Armed Forces Flag Day Fund—despite being exempt from CSR spending—the company demonstrated that social responsibility is a matter of conscience, not compulsion.
Its enduring commitment to employee welfare, nation-building projects, and the empowerment of communities cements ITI’s identity as a “Public Sector Enterprise with a Purpose.”
As India accelerates toward a digital and self-reliant future, ITI Limited continues to prove that progress is not just measured in profits, but in the lives it uplifts and the nation it serves.
(India CSR)
