New Delhi – State-run NLC India Ltd spent over Rs 45 crore on Corporate Social Responsibility (CSR) activities during the financial year (FY) 2018-19 (Apr-Mar), the company declared in its annual report. This amount was around 2.19% of the average net profit at Rs 2,258.63 crore, NLC made in the last three financial years.
This was over and above the prescribed limit of 2% of the amount of the net profit for the last 3 financial years, mandated in the Indian Companies Act, 2013. The Companies Act 2013 prescribes 17 areas of CSR activity in Schedule VII of the act. Section 135 of the Act lays down rules for CSR activity in India.
The policy which became effective from 1 April, 2014, mandates those companies for CSR activity which have net worth of 5 billion rupees or more; or turnover of 10 billion rupees or more; or net profit of 50 million rupees or more during any financial year.
This is the third instance in the last four financial years when the mining company exceeded the prescribed CSR amount. The company’s highest spending as a percentage of the net profit stands at 3.7% during the FY 2015-16, while the lowest is 1.7% during the FY 2016-17.
The mining and power company however, carried forward the remaining amount in the FY 2017-18, the report said.
The Chennai-headquartered company works in the areas such as medical health & family welfare, education, drinking water, irrigation & flood control works, for Rural Development, sports promotion in rural areas, heritage, arts & culture and relief during natural calamities, among other things.
The mining company spent over Rs 15 crore on water resource augmentation during FY19 while spending Rs 10 crore and Rs 6 crore on education and health initiatives.
NLC has also received Apex India CSR Excellence Award in 2017.