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Tata Steel’s CSR expense for 2018-19 at INR 3.15 billion, up by over 282% from prescribed limit

Prescribed limit during the period stood at INR 824 million

India CSR by India CSR
in CSR Leaders, Water & Sanitation, Workplace
Reading Time: 2 mins read
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Indian multi-national steelmaker Tata Steel Ltd spent around INR 3.15 billion on its corporate social responsibility (CSR) initiatives during the financial year 2018-19 (Apr-Mar) according to the company’s annual accounts report.  

The spending was over 282% of its prescribed limit of INR 824 million.

During the year ended 31 March, 2019, in respect of CSR activities, the company incurred revenue expenditure to INR 2.72 billion, says the report. It was 43% higher than the expenses incurred during the same period in the year ended 31 Mar, 2018.

The company had spent INR 1.90 billion during 2018-19 against the prescribed expenditure of INR 856 million.

Meanwhile, the capital expenditure towards the CSR was around INR 433 million during the same period as against INR 417 million incurred in the year ago period.

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 companies are required to spend at least 2% of the amount of the net profit for the last 3 financial years.

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.

Average net profit of the company for the last three financial years is around INR 41.20 billion, the company declared in its annual report.

Tata Steel’s CSR initiatives span across health, drinking water, sanitation, education, livelihoods and infrastructure – in line with the UN identified Sustainable Development Goals (SDGs). The initiative cater to the vulnerable sections of the society, the company claims.

Company’s CSR interventions are being deployed by over 600 professionals with diverse skills, the report says.

Tata Steel has partnered with various organisations and is aiming to cover over 2 million people by 2025 under its various CSR initiatives.

Prominent CSR Initiatives  

Tata Steel’s ‘Samvaad’ and the ‘Tribal Leadership Programme’ is providing a platforms to raise issues related to the tribal communities across the country. The initiatives work towards preserving and promoting the heritage of the communities vis-a-vis their language, culture, art forms and sports.

‘Maternal and New Born Survival Initiative’ (MANSI) initiative focuses on working with pregnant women, mothers and children on the issue of infant mortality through partnerships with the government, and national and international not-for-profit organisations.

Another important initiative is the ‘Regional Initiative for Safe Sexual Health by Today’s Adolescents’ (RISHTA) focuses on working with the adolescents to educate them on the importance of nutrition and their rights while imparting life skills training.

 

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Tags: Companies ActCSRMANSIRISHTASamvaadTata SteelTribal Leadership Programme

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