NEW DELHI (India CSR): Jindal Steel Limited has always been a beacon of commitment towards corporate social responsibility (CSR). With a firm belief in sustainable community development and an unwavering focus on the well-being of underprivileged communities, the company’s CSR policies and practices have time and again showcased the organization’s dedication to the nation’s progress.
The Foundation of CSR at Jindal Steel
Jindal Steel’s CSR policy is shaped in compliance with Schedule VII of Section 135 of the Companies Act 2013. The policy formulation is a thoughtful process overseen by a Board-level Health, Safety, CSR, Sustainability, and Environment Committee. After meticulous deliberation, the CSR policy is recommended for approval to Jindal Steels Board of Directors, ensuring that every decision aligns with the company’s vision and upholds the highest standards of accountability.
Serving with Purpose
Naveen Jindal, Chairman of the Company said to stakeholders in an Annual Report message, “JSP’s commitment to the nation extends beyond the expansion of its steel-making facilities. Led by JSP Foundation, your Company is actively implementing holistic sustainable social development projects in the communities located in the vicinity of its plants and beyond resulting in enhancing their Human Development Index (HDI). Through various other social and development initiatives across the country, your Company has positively impacted over ten million individuals.”
“Our CSR policy is in accordance with the provisions of Schedule VII of Section 135 of the Companies Act 2013. The CSR policy is formulated by a Board-level Health, Safety, CSR, Sustainability, and Environment Committee. Subsequently, it is recommended and approved by JSP’s Board of Directors, ensuring comprehensive oversight and accountability.”, the company said in its Annual Report 2022-23.
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Compliance & Beyond
As mandated by Section 135 of the Companies Act 2013, companies that meet specific criteria are required to spend at least 2% of their average net profit from the preceding three financial years on CSR activities. Jindal Steel, with a turnover of Rs. 51180.08 Crore and a net worth of Rs. 40556.85 Crore, deduced an average net profit of Rs. 7,305.59 Crore as per section 135(5). This would mean a mandated CSR spend of Rs. 146.11 Crore.
However, Jindal Steel has demonstrated a commendable commitment, spending Rs. 236.30 Crore on CSR in the financial year – a significant excess of Rs. 90.19 Crore from the stipulated amount.
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Thoughtful Allocation & Impact
A negligible Rs. 0.98 Crore was directed towards Administrative Overheads, ensuring maximum funds create direct societal impact. Notably, the company refrained from acquiring any asset through the CSR funds. Instead, assets created from such funds are entrusted to villagers or external partner institutions.
For the upcoming financial year, Jindal Steel has earmarked @ Rs 2.45 crore, a decrease from the previous year’s Rs. 4.21 crore, for the implementing agency.
CSR Obligations and Spending
| Parameter | Value |
|---|---|
| Annual Turnover | Rs. 51,180.08 crore |
| Net Worth | Rs. 40,556.85 crore |
| Average Net Profit (Section 135(5)) | Rs. 7,305.59 crore |
| Mandated CSR Spend (2% of Average Net Profit) | Rs. 146.11 crore |
| Actual CSR Spend for the Financial Year | Rs. 236.30 crore |
| Excess CSR Spend over Mandated Amount | Rs. 90.19 crore |
| Administrative Overheads | Rs. 0.98 crore |
| Amount for Impact Assessment | Not Applicable |
| Amount set aside for upcoming financial year | Rs. 2.45 crore |
| Amount from previous year for implementing agency | Rs. 4.21 crore |
| CSR Assets Acquisition | None |
| Surplus from Previous Years’ CSR Activities | NIL |
| Total CSR Obligation for the Financial Year | Rs. 146.11 crore |
Looking Ahead
With an excess CSR amount of Rs. 90.19 Crore, Jindal Steel has set a precedent, indicating its continuous commitment to social upliftment. This surplus, undeniably, will be an asset in propelling further community-driven initiatives in the subsequent financial years.
In conclusion, Jindal Steel Limited‘s CSR spending is not just about compliance but reflects a deeper understanding of corporate stewardship. The figures and actions bear testimony to a company that believes in giving back more than it is obligated to – a true embodiment of corporate responsibility.
(India CSR)
