Panyam Cements’ financial statements for FY 2024–25 show a net loss of Rs. 8,918.91 lakh
NEW DELHI (India CSR): Panyam Cements and Mineral Industries Limited, a Nandyal-based cement manufacturer, confirmed that it did not undertake any Corporate Social Responsibility (CSR) activity during the financial year 2024–25. The disclosure was made in the company’s 69th Annual Report and reflects that the CSR provisions under Section 135 of the Companies Act, 2013 were not applicable for the period under review.
“…In our opinion and according to the information and explanations given to us, the company is not obligated to spend the amount under CSR Obligations as per section 135 of the Companies Act, 2013. Accordingly, Para 3(xx)(a) & (b) of the Order is not applicable.”, the company annual report said.
CSR Committee Formed but No Meetings Held
In compliance with Section 135, the company has constituted a CSR Committee, though the committee remained inactive during the year.
“The CSR Committee has been constituted pursuant to section 135 of Companies Act, 2013, read with relevant rules in force. During the year under review, the CSR provisions were not applicable to the company and no committee meeting were held.”, the annual report revealed.
According to the report:
| Name of Member | Designation | Category |
|---|---|---|
| Mr. Vasudevan Raghavan | Chairman | Independent Director |
| Mr. Balachandran Ramachandran | Member | Independent Director |
| Mrs. Srinisha Jagathrakshakan | Member | Managing Director |
Why CSR Was Not Applicable
Under Section 135 of the Companies Act, companies must spend at least 2% of their average net profits on CSR if they meet one or more of the following criteria in the preceding financial year:
- Net worth of ₹500 crore or more,
- Turnover of ₹1,000 crore or more, or
- Net profit of ₹5 crore or more.
Panyam Cements’ financial statements for FY 2024–25 show a net loss of Rs. 8,918.91 lakh, continuing the loss trend from the previous year. As a result, the company fell below the CSR eligibility thresholds, exempting it from mandatory CSR spending.
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Financial and Governance Context
The company, which underwent Corporate Insolvency Resolution Process (CIRP) and revival through an NCLT-approved resolution plan in 2021, continues to face financial challenges. Its total income for FY 2024–25 was Rs. 9,313.74 lakh, down from Rs. 13,453.32 lakh in the previous year.
Despite these difficulties, the management reaffirmed its commitment to responsible business practices, stating that once profitability returns, CSR initiatives will be undertaken in line with national development goals.
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Leadership View
Managing Director Srinisha Jagathrakshakan, who has been steering the company’s post-revival operations, also serves on the CSR Committee. Her inclusion signals that the board views CSR as an integral part of the company’s future sustainability agenda, even though it remains inapplicable for now.
The other two members — Independent Directors Vasudevan Raghavan and Balachandran Ramachandran — bring governance oversight and independent scrutiny to the CSR function.
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Key CSR Facts (FY 2024–25)
| Parameter | Details |
|---|---|
| Applicability of CSR | Not applicable (Below threshold limits) |
| CSR Spending | ₹0 |
| CSR Committee Formed | Yes |
| Number of CSR Meetings | None held |
| CSR Chairperson | Mr. Vasudevan Raghavan |
| Managing Director on Committee | Mrs. Srinisha Jagathrakshakan |
| Net Profit/(Loss) FY 2024–25 | ₹(8,918.91) lakh |
India CSR View
Even when CSR is not mandated, companies like Panyam Cements can adopt voluntary social engagement practices — focusing on skill development, environment management, and local community upliftment — to build goodwill and long-term sustainability in India’s evolving CSR landscape.
(India CSR)
