Nilkamal CSR Spending Report of Rs 40.55 Lakhs for FY25

NEW DELHI (India CSR): In an era where corporate responsibility is increasingly paramount, Nilkamal Limited stands out not just for its market leadership in furniture and material handling solutions but also for its steadfast commitment to societal well-being. The company’s recently unveiled Annual Report for the Financial Year 2024-25 sheds light on its impactful Corporate Social Responsibility (CSR) initiatives, revealing a concerted effort to foster inclusive growth and sustainable development across India. While the financial figures tell one part of the story, the underlying narrative is one of dedication to people and communities, reflecting a core philosophy that extends far beyond the bottom line. This article delves into the specifics of Nilkamal’s CSR endeavors for FY 2024-25, highlighting their strategic approach, key focus areas, and the tangible investments made towards a brighter future for all.

Nilkamal Limited’s CSR activities for FY 2025: Overview

Nilkamal’s Enduring CSR Philosophy

Nilkamal Limited operates with a deeply ingrained philosophy that integrates business objectives with broader societal developmental goals. This commitment is formally articulated in its CSR Policy, meticulously approved by the Board of Directors in alignment with the provisions of Schedule VII of the Companies Act, 2013. The policy’s cornerstone objectives revolve around enhancing education, providing crucial healthcare facilities, and championing environmental sustainability. This holistic approach underscores Nilkamal’s understanding that true progress is inextricably linked to the well-being of the communities in which it operates. The company’s long-standing dedication to these areas is evident in its consistent efforts to not only meet but often exceed regulatory expectations, setting a benchmark for responsible corporate citizenship.

Financial Overview of FY 2024-25 CSR Initiatives

For the financial year ended March 31, 2025, Nilkamal Limited demonstrated its financial commitment to CSR. The average net profit of the company, as stipulated by sub-section (5) of section 135 of the Companies Act, 2013, stood at Rs 1,312.27 crores. Consequently, the mandatory two percent of this average net profit, which forms the total CSR obligation for the year, was calculated at Rs 2.62 crores. Interestingly, the company also carried forward a surplus of Rs 0.67 lakhs from previous financial years’ CSR projects, bringing the total CSR obligation for FY 2024-25 to Rs 2.61 crores. This detailed financial transparency underscores Nilkamal’s adherence to regulatory guidelines and its proactive management of CSR funds.

Unpacking the Spending: Where the Funds Went

During FY 2024-25, Nilkamal Limited expended Rs 40.55 lakhs directly on its approved CSR projects. It’s notable that there were no administrative overheads reported for these initiatives, ensuring that a greater proportion of funds directly reached the intended beneficiaries. While the direct spending might appear less than the total obligation, Nilkamal has prudently managed the unspent amount. A significant sum of Rs 2.21 crores was earmarked and transferred to a designated “Unspent CSR Account” on April 23, 2025, in full compliance with sub-section (6) of section 135 of the Companies Act, 2013. This strategic allocation ensures that funds not immediately deployed for ongoing projects are preserved and utilized for future CSR activities, reinforcing the company’s long-term commitment rather than a mere annual spending target. Furthermore, the company reported an excess amount of Rs 0.67 lakhs for set-off in succeeding financial years, indicating efficient management of its CSR budget. The Board of Directors’ decision not to transfer any amount to General Reserves for the year ended March 31, 2025, further emphasizes the focused allocation of available funds, including toward CSR obligations.

Key Focus Areas: Education and Healthcare

Nilkamal’s CSR activities primarily concentrated on promoting education and healthcare, alongside other initiatives outlined in Schedule VII of the Companies Act, 2013. These activities were carried out both directly by the company and through partnerships with various Non-Governmental Organizations (NGOs) and trusts. A significant aspect of this approach involves the Nilkamal Foundation, a Section 8 Company and a direct subsidiary, which serves as the company’s dedicated implementing agency for CSR activities. For instance, a contribution of Rs 7.05 lakhs was made to a trust controlled by the company, highlighting internal collaboration for social good. The company’s social welfare initiatives are geared towards enhancing educational infrastructure, providing financial assistance to underprivileged students, and promoting healthcare, including sanitation and preventive care. Additionally, efforts extend to facilitating vocational skill development for industrial workers, thereby fostering equitable opportunities and empowering communities.

Robust Governance and Transparency in CSR

The oversight of Nilkamal’s CSR initiatives is handled by a well-structured CSR Committee. For FY 2024-25, the committee saw changes in leadership, with K. R. Ramamoorthy serving as Chairman until June 27, 2024, after which Mr. Ashok Kumar Goel assumed the role of Chairman from June 28, 2024. Hiten V. Parekh and Mr. Nayan S. Parekh continued as members, ensuring continuity in the committee’s strategic direction. The committee convened two meetings during the year, ensuring due deliberation and decision-making on CSR projects. Nilkamal maintains high standards of transparency, with its CSR Committee composition, policy, and approved projects readily accessible via web-links on its corporate website.

The company also actively engages with governmental regulatory authorities, distributors, suppliers, and the local community on environmental and social matters, integrating stakeholder inputs into its policies and operations. This robust governance framework ensures that CSR efforts are not only impactful but also accountable and aligned with the highest ethical standards.

A Sustainable Outlook for Community Development

Nilkamal’s commitment to CSR is an ongoing journey, intricately linked with its broader sustainability goals. The company emphasizes a strategy focused on actively reducing carbon emissions, minimizing environmental impact, and integrating green energy into its manufacturing processes. This is demonstrated by achieving 26% renewable energy usage and an estimated reduction of 9,572 tonnes of carbon emissions during the year.

While this article specifically focuses on CSR spending, it’s part of a larger narrative of responsible business conduct that also includes significant investments in research and development to improve environmental and social impacts of products and processes, such as the installation of all-electric injection molding machines offering 50% lower energy consumption.

By investing in social infrastructure and human capital, Nilkamal is not just fulfilling a mandate but building a foundation for long-term shared value. The unspent funds from FY 2024-25, meticulously transferred for future use, signify a sustained dedication to these initiatives, promising continued positive impact on education, healthcare, and overall community development in the years to come. Nilkamal’s holistic approach ensures that its business growth goes hand-in-hand with fostering a more sustainable and equitable society.

(India CSR)