Jindal Saw spends Rs 10 Cr on CSR in FY21; Fails to spend 27% due to Covid lockdowns

New Delhi, 19 January 2022: Jindal Saw Limited (JSL), a leading manufacturer of pipes for various industrial applications and a part of the well-known Jindal Group, spent around Rs 10 crore against its CSR obligation of Rs 13.68 crore for the financial year 2021.

The average net profit of Jindal Saw Ltd. for the last three financial years amounted to Rs 683.88crore. The CSR budget of a company for a particular year is calculated as 2% of the average net profit of the past three financial years. Therefore, the company’s prescribed CSR budget for the year 2020-21 was calculated at Rs 13.68 crore. However, it could spend only Rs. 9.99 crore on its CSR activities in the year, owing to Covid. This was 73 percent of its total prescribed CSR budget for FY21. The company transferred the remaining amount to its unspent CSR account.

The company blamed the pandemic as the reason for not being able to spend its total CSR budget. “The management had, initially at the beginning of the financial year, estimated the amount to be spent on the CSR activities in the range of Rs 13.50 crore to Rs 14. crore. The company could not spend the full amount due to the lockdown imposed the most of the areas resulting in the closing down of activities due to the pandemic. As per the provision related to CSR, the unspent amount of Rs. 3.69 crore has been transferred to separate bank account and shall be spent on the ongoing projects,” the annual report of Jindal Saw states.

Crucial components of Jindal Saw’s CSR expenditure

Focus Areas

Jindal Saw extended the following support to society under CSR initiatives specifically during the second wave of the pandemic:

• Oxygen cylinders were donated to government hospitals
• Contribution of fifteen portable oxygen concentrators to hospitals
• Sanitization activities are regularly undertaken in the nearby area
• Purchased five tankers of 20 KL liquid oxygen to refill oxygen cylinders for government hospitals
• Shifting of one high-pressure compressor from Samaghogha for the purpose of bottling the oxygen and supplying it to hospitals
• Installation of 2PSA oxygen plant capacity: 100 Nm3/Hr along with filling station for filling oxygen cylinder of capacity 7 m3

Despite its inability to comply with the CSR budget, the company states, “Our CSR activities are driven by the core value of Inclusion. Jindal SAW shall ensure that all developmental activities and initiatives undertaken are accessible and inclusive to the most marginalized segments such as children, women, the elderly, and those with disabilities. This would reflect particularly in the field of education, healthcare, water and sanitation, community welfare, skill development, employment generation, infrastructure development, preservation of national heritage & culture, tourism, mobility, and transportation, etc.”