New Delhi, 15 November 2020: Exceeding expectation on CSR front, Gold financing company Muthoot Finance has spent Rs 55.91 Crore towards its social responsibility in year 2019-20. The company which carries out most of its CSR activities through its implementation agency Muthoot M. George Foundation spent Rs 3.63 Crore more than its mandatory CSR obligation.
Muthoot finance limited is the flagship arm of the Muthoot group, which began its journey in 1887 from a remote village of Kozhencherry in Kerala. The company commenced its gold business in 1939 and received the RBI licence to function as an NBFC in 2001 and has only seen a growth in its business over the years.
The average net profit of the company for the past three financial years stood at Rs 2,614 Crore. Its prescribed CSR expenditure was thus calculated as Rs 52.28 Crore. According to the Companies Act 2013, CSR budget of a company is calculated as 2 percent of the average net profit of the past three years. However, the company went a step forward and spent Rs 55.91 Crore towards its CSR activities, which is 7 percent more than the mandatory obligation for the financial year.
Expenditure Summary:
| Sectors | Amount Spent (Rs Cr) |
| Improving quality of life | 21.76 |
| Promotion of sports | 13.81 |
| Promotion of Education | 13.00 |
| Disaster Management | 6.47 |
| Promoting gender equality and empowering women | 0.49 |
| Environmental protection | 0.20 |
| Poverty Alleviation | 0.17 |
| Employment enhancing vocational skills, social business projects | 0.009 |
| Total | 55.91 |
The company has a CSR committee in place which was constituted by the company’s Directors by a board resolution dated August 11, 2014 and further reconstituted as CSR and Business Responsibility Committee on September 28, 2019. The committee is currently led by its chairman Jose Mathew. Justice Jacob B Koshy and George Alexander Muthoot are the other Members of the committee.
Muthoot M. George Foundation, the CSR arm of Muthoot Finance, implements the company’s CSR works. The Foundation spends the CSR budget on a range of CSR initiatives in domains such as education, environment, sanitation, health and medical aid as well as financial aid for the economically disadvantaged communities. Some of the key initiatives taken by the company this financial year are as follows:
Muthoot Aashiyana: Muthoot Aashiyana is a project implemented for construction of 200 houses for the flood victims in Kerala. The company has completed the construction of 121 houses so far and the rest of the houses are under construction.
Awareness film – Film created for promoting awareness regarding sustainable development goals and CSR activities.
Water Bottle /School bag for School children: Steel water bottle distribution is a program initiated for the purpose of creating awareness and motivation to reduce the use of plastic bottles among students with a message ‘Say NO to Plastic, Save the Environment’. Muthoot M George Foundation has distributed 5,000 stainless steel water bottles to the students of Government & Aided Schools in South India under this program. Also distributed School bags to the students in Govt./Aided Schools.
Snehasraya & Anbin Nizhal: Muthoot Snehasraya’ is a Mobile Laboratory intended for Prevention and early detection of Kidney related diseases, diabetes and Hyper tension ailments. The mobile ambulance is being operated across Karnataka, Andhra Pradesh, Tamil Nadu & Kerala and facilitates blood & urine tests and create awareness among people about the dreaded disease. Also, it provides assistance to renal patients.
Muthoot Snehasancharini & Snehasammanam Project: 101 artificial limbs were distributed through Muthoot Snehasancharini Project 2019 to amputees in association with Rotary Clubs of Cochin West and Coimbatore Midtown from Rotary District. Snehasammanam Projects is a project introduced for supporting artists, who are struggling to take their life forward. The recipients of this support scheme are all artists and performers who have contributed immensely in their respective art forms)
Poor Patients’ Medical assistance: Providing assistance to needy and financially weak applicants. Cases processed through the applications received in MMGF & MMGCT through branches for Heart ailments, Liver ailments, Cancer ailments, chemotherapy, Kidney Transplantation, Renal, Cleft lip & Palate Surgeries & medicines. It also is providing medical & sustenance assistance to the needy and financially weak applicants. Also providing support to NGOs & institution that take care of physically and mentally challenged special individuals.
Scholarships to students: Scholarships given to students studying in Schools, Colleges etc. Majority of these children are coming from low income group or lower middle class families. Also providing general education assistance for conducting motivational & personality development activities for economically deprived students of government and aided schools in association with NGOs, well known organisations, etc.
Sports Promotion Activity – Infrastructure development of Schools for the promotion of sports activities.
