Elecon Engineering Co.Ltd. — Environmental & Social Information 2023

Jun 6, 2023

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BHARTIBEN LALITKUMAR ISARANI Digitally signed by BHARTIBEN LALITKUMAR ISARANI DN: c=IN, o=Personal, postalCode=388001, st=Gujarat, serialNumber=F4C51B6318E6ACAB9D278CCF2D6CA7B880331CFFA3DA32BEF38E61C2C76BC835, cn=BHARTIBEN LALITKUMAR ISARANI Date: 2023.06.06 18:43:08 +05'30'

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Elecon Engineering Company Limited

ANNEXURE - E TO BOARD’S REPORT

Business Responsibility & Sustainability Report

Elecon Engineering Company Limited is a brand that stands for industry leadership and relentless innovation in the Transmission business as well as being a provider of integrated solutions for the whole value chain of material handling systems. By working in collaboration with and enabling our stakeholders, we are committed to establishing an environment of transparency and accountability to foster sustainable development which is beneficial for all.

Environmental, Social and Governance (ESG) factors are important for our long-term growth and to all our stakeholders given that our activities are having an impact on the society and environment. We have integrated ESG aspects significantly into our Company’s strategy.

SECTION A: GENERAL DISCLOSURES

• I. Details of the listed entity

I.	Details of the listed entity
1.	Corporate Identity Number (CIN) of the Listed Entity		L29100GJ1960PLC001082
2.	Name of the Listed Entity		ELECON ENGINEERING COMPANY LIMITED
3.	Year of incorporation		1960
4.	Registered address		Anand-Sojitra Road, Vallabh Vidyanagar 388 120, Dist. Anand, Gujarat.
5.	Corporate address		Anand-Sojitra Road, Vallabh Vidyanagar 388 120, Dist. Anand, Gujarat.
6.	E-mail id		investor.relations@elecon.com
7.	Telephone		+91-2692-238701
8.	Website		www.elecon.com
9.	Financial year for which reporting is being done		1stApril, 2022 to 31stMarch, 2023
10.	Name of the Stock Exchange(s) where shares are listed		National Stock Exchange of India Limited and BSE Limited
11.	Paid-up Capital		`2,244.00 Lakhs
12.	Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report		Shri Prayasvin B. Patel Chairman & Managing Director +91-2692-238701 investor.relations@elecon.com
13.	Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e., only for the entity) or on a consolidated basis (i.e., for the entity and all the entities which form a part of its consolidated fnancial statements, taken together).		The disclosures under this report are made on a standalone basis.

II. Products/Services

14. Details of business activities (accounting for 90% of the turnover):

Sr.No.	Description of Main Activity	Description of Business Activity	% of Turnover of the entity
1.	Manufacturing	Electrical equipment, General Purpose and Special purpose Machinery & equipment, Transport equipment	100

15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

Sr.No.	Product/Service	NIC Code	% of total Turnover contributed
1.	Gears (Reduction Gears)	29131	80.15
2.	Bulk Material Handling Equipment	29151	17.31

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63[rd] Annual Report 2022 - 23

3.	Repair and maintenance of bearings, gears, gearing and driving element	29138	1.63
4.	Repair and maintenance of lifting and handling equipment	29158	0.90

III. Operations

1. Number of locations where plants and/or operations/offices of the entity are situated:

Location	Number of plants	Number of offces	Total
National	2	14	16
International	NIL	NIL	NIL

17. Markets served by the entity:

• a. Number of locations

Markets served by the entity: a. Number of locations
Location	Number of plants
National (No. of States)	28
International (No. of Countries)	60

• b. What is the contribution of exports as a percentage of the total turnover of the entity?

• Export constitutes 9.10% of the total turnover of the entity.

• c. A brief on types of customers

• We are engaged in manufacturing of Industrial Gears and Material Handling Equipment. We cater to the following industries:

• Steel Industries

• Cement Manufacturing Industries

• Power Generation & Transmission Industries

• Sugar Manufacturing Industries

• Material Handling Equipment Industries

• Defense Industries

• Mining Industries

• Fertilizer Industries

IV. Employees

18. Details as at the end of Financial Year:

• a. Employees and workers (including differently abled)

S.No.	Particulars	Total (A)	Male	Male	Female	Female
			No. (B)	% (B / A)	No. (C)	% (C / A)
EMPLOYEES
1.	Permanent (D)	631	613	97.14	18	2.86
2.	Other than Permanent (E)
3.	Total employees (D + E)	631	613	97.14	18	2.86
WORKERS
4.	Permanent (F)	1185	1185	100.00	-	-
5.	Other than Permanent (G)
6.	Total workers (F + G)	1185	1185	100.00	-	-

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Elecon Engineering Company Limited

b. Differently abled Employees and workers:

S.No.	Particulars	Total (A)	Male	Male	Female	Female
			No. (B)	% (B / A)	No. (C)	% (C / A)
DIFFERENTLY ABLED EMPLOYEES
1.	Permanent (D)	1	1	100.00	-	-
2.	Other than Permanent (E)
3.	Total differently abled employees (D + E)	1	1	100.00	-	-
DIFFERENTLY ABLED WORKERS
4.	Permanent (F)	1	1	100.00	-	-
5.	Other than Permanent (G)
6.	Total differentlyabled workers (F + G)	1	1	100.00	-	-

1. Participation/Inclusion/Representation of women:

	Total	No. and percentage of Females	No. and percentage of Females
	(A)	No. (B)	% (B / A)
Board of Directors	7	1	14.29
Key Management Personnel	2	1	50.00

1. Turnover rate for permanent employees and workers (in %):

	FY 2022-23 (Turnover rate in current FY)	FY 2022-23 (Turnover rate in current FY)	FY 2022-23 (Turnover rate in current FY)	FY 2021-22 (Turnover rate in previous FY)	FY 2021-22 (Turnover rate in previous FY)	FY 2021-22 (Turnover rate in previous FY)	FY 2020-21 (Turnover rate in the year prior to the previous FY)	FY 2020-21 (Turnover rate in the year prior to the previous FY)	FY 2020-21 (Turnover rate in the year prior to the previous FY)
	Male	Female	Total	Male	Female	Total	Male	Female	Total
Permanent Employees	9.12	11.11	9.17	15.27	-	14.94	30.00	18.75	29.77
Permanent Workers	32.26	-	32.26	43.64	-	43.64	32.93	-	32.93

• V. Holding, Subsidiary and Associate Companies (including joint ventures)

• (a) Names of holding / subsidiary / associate companies / joint ventures

S.No.	Name of the holding / subsidiary / associate companies / joint ventures (A)	Indicate whether holding/ Subsidiary/ Associate/ Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)
1	Radicon Transmission UK Limited	Subsidiary	100	No
2	Elecon Singapore PTE. Limited	Subsidiary	100	No
3	Elecon Middle East FZCO	Subsidiary	100	No
4	Benzlers Systems AB	Step Down Subsidiary	100	No
5	AB Benzlers	Step Down Subsidiary	100	No
6	Radicon Drive Systems Inc.	Step Down Subsidiary	100	No
7	Benzlers Transmission A.S.	Step Down Subsidiary	100	No
8	Benzlers Antriebstechnik G.m.b.h	Step Down Subsidiary	100	No
9	Benzlers TBA B.V.	Step Down Subsidiary	100	No
10	OY Benzlers AB	Step Down Subsidiary	100	No

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63[rd] Annual Report 2022 - 23

S.No.	Name of the holding / subsidiary / associate companies / joint ventures (A)	Indicate whether holding/ Subsidiary/ Associate/ Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)
11	Benzlers Italia s.r.l.	Step Down Subsidiary	100	No
12	Eimco Elecon (India) Limited	Associate	17	No

VI. CSR Details

1. (i) Whether CSR is applicable as per Section 135 of the Companies Act, 2013: (Yes/No) Yes

2. (ii) Turnover ` 119,699.24 lakhs (FY 2022-23)

3. (iii) Net worth ` 107,935.96 lakhs (FY 2022-23)

VII. Transparency and Disclosures Compliances

1. Complaints/ Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Conduct:
Stakeholder group from whom complaint is received	Grievance Redressal Mechanism in Place (Yes/No) (If Yes, then provide web-link for grievance redress policy	FY 2022-23 Current Financial Year			FY 2021-22 Previous Financial Year
		Number of complaints fled during the year	Number of complaints pending resolution at close of the year	Remarks	Number of complaints fled during the year	Number of complaints pending resolution at close of the year	Remarks
Communities	Yes, Refer Links below	-	-	NA	-	-	NA
Investors (other than sareholders)		-	-	NA	-	-	NA
Shareholders		11	-	NA	18	-	NA
Employees and workers		-	-	NA	-	-	NA
Consumers		263	3	NA	232	0	NA
Value Chain Partners		-	-	NA	-	-	NA
Other (please specify)		NA	NA	NA	NA	NA	NA

Links: https://www.elecon.com/investors/policies,

• • https://www.elecon.com/views/templates/admin uploads/Investors/Policies/Code%20of%20Conduct 2023.pdf, - - https://www.elecon.com/views/templates/admin uploads/Investors/Policies/Human%20Rights%20Policy 2023.pdf, - - https://www.elecon.com/views/templates/admin uploads/Investors/Policies/Supplier%20Code%20of%20Conduct 2023.pdf, - - https://www.elecon.com/views/templates/admin uploads/Investors/Policies/Customer%20Relationship%20Policy 2023.pdf.

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Elecon Engineering Company Limited

24. Overview of the entity’s material responsible business conduct issues

S.No.	Material issue identifed	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk / opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate positive or negative implications)
1.	Sustainable Products	O	Our R&D team is focused on improvising our product range to reduce use of electricity and oil during operational phase. Our current and new products are focused on use of recyclable material.	-	Positive
2.	Renewable Energy	O	In our endeavor to adopt renewable energy, we have moved to solar and wind energy and are increasing our footprint in renewable energy which will save environment and will help the company to reduce the energy cost. The Company has an installed capacity of 4.7MWh in solar rooftop and 13.85 MWh in windfarms.	-	Positive
3.	Sustainable supply chain	O	The Company believes long term association with suppliers and con-sider them as long term partners in growth. Strategic partners Meet are organized on regular basis.	-	Positive
4.	Occupational Health & Safety	R	Failure to ensure health and safety may hamper the smooth running of operations, impact manpower availability and may lead to litigation.	We are enhancing our safe work practices/ p r o c e d u r e s b y automating most of our machinery and working procedures. In addition, w e a r e w o r k i n g towards increasing the frequency and coverage of our training and awareness programs.	Negative
5.	Training and Skill Development	O	Our Skill enhancement and other training programs help us to improve our efficiency and to retain this specialised and skilled workforce.	-	Positive

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6.	Stakeholder Engagement	O	As we move towards growing into a more sustainable business, inclusion of various stakeholders in our growth journey is very important. We take their inputs to plan our business strategy. We are continuously engaging with the employees, investors, suppliers, customers etc. through employee engagement initiatives, Investor meet, Vendor Meet, etc. on periodical basis.	-	Positive
7.	Ethical Behavior	O	Ethical Behaviour as defined by our Code of Conduct not only helps us to have good governance but also guides us to comply with applicable regulatory requirements. The Company is giving lot of importance to ethical behavior and compliances. The Company has taken initiatives to undergo cultural transformation journey with focus on values.	-	Positive

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.

Disclosure Questions

the NGRBC Principles and Core Elements. Disclosure Questions	the NGRBC Principles and Core Elements. Disclosure Questions
Policy and management processes		P1	P2		P3	P4	P5	P6	P7	P8	P9
1.	a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No)	Yes	Yes		Yes	Yes	Yes	Yes	Yes	Yes	Yes
	b. Has the policy been approved by the Board? (Yes/No)	Yes	Yes		Yes	Yes	Yes	Yes	Yes	Yes	Yes
	c. Web Link of the Policies, if available*			https://www.elecon.com/investors/policies
2.	Whether the entity has translated the policy into proce-dures. (Yes / No)	Yes	Yes		Yes	Yes	Yes	Yes	Yes	Yes	Yes
3.	Do the enlisted poli-cies extend to your value chain partners? (Yes/No)	Yes	Yes		Yes	Yes	Yes	Yes	Yes	Yes	Yes
4.	Name of the national and international codes/ certifcations/labels/ standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Truste) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle.	ISO 14001 (2015), ISO 45001 (2018), Authorised Economic Operator certifcation, Great Place to Work certifcation, ISO 9001 (2015), National Accreditation Board for Testing & Calibration Laboratories (NABL) certifcate, CE/ATEX certifcation for certain products.

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Elecon Engineering Company Limited

5.	Specifc commitments, goals and targets set by the entity with defned timelines, if any.	We have started our sustainability journey. We understand that although our operations are sustainable, we need to quantify our ESG indicators and benchmark it against the industry standards. As we continue to progress in our ESG journey, we are in the process to benchmark our ESG indicators and set goals and targets accordingly. We are increasingly moving towards renewable energy with our solar and wind installation to increase our percentage of renewable energy in our energy-mix. We maintain a vast green pasture within our premises and also have a provision of rainwater harvesting.
6.	Performance of the entity against the specifc commitments, goals and targets along-with reasons in case the same are not met.	As mentioned in the above para we have started our ESG journey recently and are in the process to develop methods to measure our performance against the specifc commitments,goals & targets set bythe Company.
Governance, leadership and oversight
7.	Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has fexibility regarding the placement of this disclosure). The Company stands testimony to the great efforts and ambitions of its founding fathers and their successors to sustain its excellence through sustainability led business strategy that prioritizes ecological and social growth while simultaneously achieving fnancial growth. Our company’s evolution is built on maintaining the greatest levels of customer satisfaction, implementing environmentally friendly and energy-effcient manufacturing practices and upholding best-in-class work safety and health protection measures, thus catering to the diverse needs of our stakeholders. To ensure that sustainability is embedded across our operations and processes, our board and committee members engage in strategic discussions pertaining to key ESG issues on an ongoing basis. Identifcation of key ESG issues is achieved through conducting a comprehensive materiality assessment. We engage in constant, rigorous dialogue with employees, suppliers, customers, associations, and authorities to achieve our goals in the areas of quality, environmental protection and workplace safety. This year we shaped our materiality assessment based on response gathered from key stakeholders followed by sensitization of the assessment’s output material themes. Our innovative solutions are enabling an increasing number of industries and enterprises to reduce their environmental impact, to forge a more promising future for our future generations. We maintain the highest standards for quality, resource conservation, energy effciency, work safety and health protection during the development stage of our products and services. Keeping the drastic effects of climate change and energy security in mind, we are transitioning to renewable sources. To this end, we have an installed capacity of 4.7MWh in solar rooftop and 13.85MWh in windfarms. By investing on energy saving technologies in our premises, we not only improve our energy intensity, but also achieve cost effciencies. We achieve a process of continual improvement and advancement of our overall performance by continuous internal and external review of our management system and the implementation of relevant measures. We are encouraged with the amount of emphasis and engagement in the ESG & Sustainability agenda, as well as the momentum that has been maintained. We’ve made good early headway on our sustainability path, and we’re determined to keep it going.
8.	Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies).	Our Board has overview on the Business Responsibility Policies. Respective Business Heads are responsible for implementing and driving the policies within their respective scope.
9.	Does the entity have a specifed Committee of the Board/ Director responsible for decision making on sustainability related issues? (Yes / No). If yes, provide details.	No. Our Board, during their meetings discusses topics on sustainability and takes appropriate decisions as and when required. The respective business heads are responsible for implementation and monitoring of ESG parameters within their scope.

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63[rd] Annual Report 2022 - 23

10.	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:	Details of Review of NGRBCs by the Company:
	Subject For Review	Indicate whether review was undertaken by Director / Committee of the Board/ Any other Committee									Frequency (Annually /Half yearly/ Quarterly, Any other-Please Specify)
		P1	P2	P3	P4	P5	P6	P7	P8	P9	P1	P2	P3	P4	P5	P6	P7	P8	P9
	Performance against above policies and follow up action	As a sustainable practice, our Board reviews the policies on need basis and sustainability initiatives on an annual basis. During review, the effectiveness of the policies is assessed and any necessary changes to policies and procedures are adopted. Department and Business Heads also review our policies and their effectiveness periodically and any update or change is timely presented to the Board for approval, if required.									Our Board reviews the policies on need basis and sustainability initiatives on an annual basis.
	Compliance with statutory requirements of relevance to the principles, and, rectifcation of any non-compliances	We are compliant with the applicable statutory requirements and there have been no instances of non-compliances.
11.	Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency.	P1		P2		P3		P4		P5		P6		P7		P8		P9
		No
12.	If answer to question (1) above is “No” i.e. not all Principles are covered bya policy, reasons to be stated:
	Questions	P1		P2		P3		P4		P5		P6		P7		P8		P9
	The entity does not consider the Principles material to its business (Yes/No)	Not Applicable
	The entity is not at a stage where it is in a position to formulate and implement the policies on specifed principles (Yes/No)
	The entity does not have the financial or/ human and technical resources available for the task (Yes/No)
	It is planned to be done in the next fnancial year (Yes/No)
	Any other reason (please specify)

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Elecon Engineering Company Limited

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally, and ethically responsible.

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.

Essential Indicators

1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:

Segment	Total number of training and awareness programmes held	Topics / principles covered under the training and its impact	%age of persons in respective category covered by the awareness programmes
Board of Directors	2	Recent Amendments in the SEBI Regulations, update programme on the plant operations	100
Key Managerial Personnel	2	POSH, Values & Culture	100
Employees other than BoD and KMPs	80	POSH, Values, Health & Safety, Human Rights & Culture, Skill Enhancement	91
Workers	118	Topics / principles covered under the training and its impact: Health & Safety, Skill Enhancement, Quality & Manufacturing Circle Awareness	83

1. Details of fines/penalties/punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):

SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):	SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
Monetary
	NGRBC Principle	Name of the regulatory/ enforcement agencies/ judicial institutions		Amount (In INR)		Brief of the Case		Has an appeal been preferred? (Yes/No)
Penalty/ Fine	Nil
Settlement
Compounding fee
Non-Monetary
	NGRBC Principle		Name of the regulatory/ enforcement agencies/ judicial institutions		Brief of the Case		Has an appeal been preferred? (Yes/No)
Imprisonment	Nil
Punishment

1. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary action has been appealed:

non-monetary action has been appealed:	non-monetary action has been appealed:
Monetary
Case Details	Name of the regulatory/ enforcement agencies/judicial institutions
Not Applicable

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63[rd] Annual Report 2022 - 23

1. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.

Yes. It is a part of our Code of Conduct. We ensure all our systems are operated ethically.

Web-link to the policy:

• https://www.elecon.com/views/templates/adminuploads/Investors/Policies/Elecon-Code-of-Conduct.pdf, https://www.elecon.com/views/templates/admin-uploads/Investors/Policies/Code%20of%20Conduct-2023.pdf.

• 1. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption:

Particulars	FY 2022-23	FY 2021-22
Directors	Nil	Nil
KMPs
Employees
Workers

1. Details of complaints with regard to conflict of interest:

Particulars	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22
	Number	Remarks	Number	Remarks
Number of complaints received in relation to issues of Confict of Interest of the Directors	Nil		Nil
Number of complaints received in relation to issues of Confict of Interest of the KMPs

1. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

2. Not applicable.

PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

	FY 2022-23	FY 2021-22	Details of improvements in environmental and social impacts
R&D	Not Available*	Not Available*	Our R&D department is not only focused on upgrading our technology but also focused on making our products more sustainable. To reduce the environment and social impact of our products the department works on projects considering reduction of weight of our product and optimal use of oil in operations, improvisingsafetyfeatures and operational effciency.
Capex	70.88	55.24	In the previous years we had installed solar and wind power systems to increase our renewable energy consumption. In addition to this in FY 2022- 23, we have undertaken following initiatives to increase our operational energy effciency as under: 1. Retroftting of emission control devices (RECD) on diesel generators resulting in reduction of Particulate Matter (PM) level up to 90%. 2. Clean power project of installation of solar rooftops having capacity of 2 MW AC to reduce dependency on conventional energy resources. This clean power project shall reduce GHG and Particulate Matter (PM) pollution. 3. Installation of ergonomic equipment for reducing human fatigue during operations as well as increased energy effciency.

*We are in the process of capturing the specific Research and Development expenditure made to improvise our products in their environmental and social impacts.

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Elecon Engineering Company Limited

1. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)

2. b. If yes, what percentage of inputs were sourced sustainably?

Yes, the Company has formulated an operating procedure to approve vendors. Materials are procured from approved vendors both, local and international. The quality assurance team of the Company conducts periodic audit of the vendors, especially those who supply key materials and there is very specific focus towards the conservation of energy, water & environment at their end.

1. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

The composition of all our products, which we market and sell are made of metals (around 99%) which is easily recyclable. Our products are made of ferrous & non-ferrous materials which has long & sustainable life cycle of around 20-25 years. This makes it unviable to directly reclaim our products for recycling after its end of life. However, we are currently looking into ways in which we can reclaim and recycle our own products at the end or their life cycle.

Our product manual raises awareness and encourages customers to recycle their used products with the help of recyclers. At the end of its life cycle, our products don’t generate any plastic/e-waste, hazardous or any other waste.

1. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

Not applicable

PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains

Essential Indicators

1. a. Details of measures for the well-being of employees:

Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:	Boards? If not, provide steps taken to address the same. Not applicable CIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains Essential Indicators a. Details of measures for the well-being of employees:
		% of employees covered by
Category	Total (A)	Health insurance		Accident insurance		Maternity benefts		Paternity Benefts		Day Care facilities
		Number	%	Number	%	Number	%	Number	%	Number	%
		Permanent Employees and Other than Permanent Employees
Male	613	613	100.00	613	100.00	-	-	-	-	-	-
Female	18	18	100.00	18	100.00	18	100.00	-	-	-	-
Total	631	631	100.00	631	100.00	18	2.85	-	-	-	-

• b. Details of measures for the well-being of workers:

b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:	b. Details of measures for the well-being of workers:
		% of workers covered by
Category	Total (A)	Health insurance		Accident insurance		Maternity benefts		Paternity Benefts		Day Care facilities
		Number	%	Number	%	Number	%	Number	%	Number	%
		Permanent Workers and Other than Permanent Workers
Male	1185	1185	100.00	1185	100.00	-	-	-	-	-	-
Female	-	-	-	-	-	-	-	-	-	-	-
Total	1185	1185	100.00	1185	100.00	-	-	-	-	-	-

1. Details of retirement benefits, for Current Financial Year and Previous Financial Year.

Benefts	FY 2022-23	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22	FY 2021-22
	No. of employees covered as a % of total employees	No. of workers covered as a % of total workers	Deducted and deposited with the authority (Y/N/N.A.)	No. of employees covered as a % of total employees	No. of workers covered as a % of total workers	Deducted and deposited with the authority (Y/N/N.A.)
PF	100	100	Y	100	100	Y

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63[rd] Annual Report 2022 - 23

Gratuity	100	100	Y	100	100	Y
ESI*	NA	NA	NA	NA	NA	NA
Others-Please Specify	NA	NA	NA	NA	NA	NA

*The facilities and branches of the Company are either exempted from or not covered under ESIC Scheme.

3. Accessibility of workplaces

• Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.

• Yes, our office and manufacturing unit are accessible to differently abled employees and workers.

• Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web link to the policy.

Yes, we emphasize on treating every individual with dignity and respect inside our organisation and also within our supply chain. We also ensure that Human Rights Policy is strictly adhered in our premises and also encourage our supply chain partners to comply with our policy. https://www.elecon.com/views/templates/admin-uploads/Investors/Policies/Human%20Rights%20Policy-2023.pdf.

1. Return to work and Retention rates of permanent employees and workers that took parental leave.

	Permanent Employees	Permanent Employees	Permanent Workers	Permanent Workers
Gender	Return to work rate	Retention rate	Return to work rate	Retention rate
Male	-	-	-	-
Female	-	-	-	-
Total	-	-	-	-

None of the employees were on maternal leave in the last 3 financial years (including FY 22-23).

1. Is there a mechanism available to receive and redress grievances for the following categories of employees and workers? If yes, give details of the mechanism in brief.

If yes, give details of the mechanism in brief.
	Yes/No (If Yes, thengive details of the mechanism in brief)
Permanent Employees	Yes*, we are having a grievance redressal mechanism which is elaborated in our Code of conduct through which employees & workers can raise their concerns and which are addressed at the earliest. Employees & Workers can promptly report to the management about any actual or possible violation of the Code of Conduct, or any event he or she becomes aware of that could affect the business or reputation of any unit of our Company to the appropriate person(s) as defned in the policy.
Other than Permanent Employees
Permanent Workers
Other than Permanent Workers

*Detailed redressal mechanism can be viewed in specific policies whose link is

https://www.elecon.com/investors/policies,

https://www.elecon.com/views/templates/admin-uploads/Investors/Policies/Code%20of%20Conduct-2023.pdf, https://www.elecon.com/views/templates/admin-uploads/Investors/Policies/Human%20Rights%20Policy-2023.pdf.

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Elecon Engineering Company Limited

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

	FY 2022-23	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22	FY 2021-22
Category	Total employees / workers in respective category (A)	No. of employees / workers in respective category, who are part of association(s) or Union (B)	% (B / A)	Total employees / workers in respective category (C)	No. of employees / workers in respective category, who are part of association(s) or Union (D)	% (D / C)
Total Permanent Employees	-	-	-	-	-	-
Male	-	-	-	-	-	-
Female	-	-	-	-	-	-
Total Permanent Workers	-	-	-	-	-	-
Male	-	-	-	-	-	-
Female	-	-	-	-	-	-

1. Details of training given to employees and workers:

Category			FY 2022-23	FY 2022-23	FY 2022-23	FY 2022-23	FY 2022-23	FY 2022-23			FY 2021-22	FY 2021-22	FY 2021-22	FY 2021-22	FY 2021-22	FY 2021-22
	Total (A)		On Health and safetymeasures			On Skill upgradation			Total (A)		On Health and safetymeasures			On Skill upgradation
			No. (B)	% (B / A)		No. (C)		% (C / A)			No. (E)		% (E / D)	No. (F)		% (F / D)
			Employees
Male	613		250	40.78		450		73.00%	550		275		50.00	295		53.63
Female	18		18	100.00		12		67.00%	15		13		86.67	10		66.67
Total	631		268	42.00		462		73.00%	565		288		50.97	305		53.98
			Workers
Male	1,185		462	38.98		683		58.00%	930		583		62.68	236		25.37
Female	-		-	-		-		-	-		-		-	-		-
Total	1185		462	38.98		683		58.00%	930		583		62.68	236		25.37
Details of performance			and career development reviews of employees and workers:
Category			FY 2022-23							FY 2021-22
			Total (A)		No. (B)		% (B / A)			Total (C)		No. (D)			% (D / C)
			Employees
Male			613		551		89.88			550		478			86.90
Female			18		17		94.44			15		14			93.33
Total			631		*568		90.01			565		*492			87.07
			Workers*
Male			1 185		-		-			930		-			-
Female			-		-		-			-		-			-
Total			1,185		-		-			930		-			-

1. Details of performance and career development reviews of employees and workers:

2. Only employees joining before the cut-off date are eligible for performance review.

3. Health and safety management system:

4. a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage of such a system?

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63[rd] Annual Report 2022 - 23

Yes, at Elecon, we consider safety as a core value rather than a priority. To control safety events and raise awareness of the value of healthy lives, we employ proactive and preventive actions. We have implemented several safeguards, including safety audits, emergency preparedness action plans, fire safety measures, emergency training and other focused initiatives. We are committed to preventing injuries and occupational illness and we drive the same through our organization by promoting the requirements as per ISO 45001: 2018 and other similar guidelines. The - detailed policy is available at https://www.elecon.com/views/templates/admin uploads/Investors/Policies/EHS%20 - policy 2023.pdf.

• b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?

To find and eliminate any risks in our offices and manufacturing facility, we have put in place a systematic risk management procedure. Engineers, production-in-charge personnel, and Environment Health & Safety (EHS) team members are key stakeholders who are involved in risk assessments and the risk management process. Documentation, approval and dissemination to all pertinent parties participating in the activity are necessary for all identified risks and risk mitigation plans. Accordingly, we have incorporated safety observations, rectification plans & procedures in all our operations which includes Hazard Identification & Risk Assessment for all manufacturing as well as administrative activities, contractor safety management, external audits, etc.

• c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N)

Yes, we have a mechanism in place for employees to identify and report workplace dangers and make improvement suggestions. All personnel receive the necessary training to identify hazards and problems. At regular intervals, management representatives and workers on the shop floor conduct joint inspections, and appropriate corrective and preventive actions are performed to mitigate the identified risks. Employee participation and open discussion of safety-related topics are encouraged in order to foster an open and transparent safety culture throughout our organization.

As a practice, we impart training for work-related hazards in all our operations. Any hazards or hazardous conditions can immediately be reported to the operational head, safety head as well as supervisor. The actions taken are discussed with workers in our quarterly safety committee meetings. Further, awareness sessions and documented procedures are implemented to prevent the recurrence of the hazard.

• d. Do the employees/ workers of the entity have access to non-occupational medical and healthcare services? (Yes/ No)

Yes, all workers including their dependent family member have access to external multispecialty reputed hospital which is in our proximity with all latest facilities, infrastructure for non-occupational medical and health care services, awareness programs are conducted by experts on different topics including: good health habits, blood disorders, varicose veins, cancer, etc.

All our employees are covered under group health insurance covering access to non-occupational medical and healthcare services.

1. Details of safety related incidents, in the following format:

Safety Incident/Number	Category	FY 2022-23	FY 2021-22
Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked)	Employees	-	0.90
	Workers	-	-
Total recordable work-related injuries	Employees	1	1
	Workers	1	-
No. of fatalities	Employees	-	-
	Workers	-	-
High consequence work-related injury or ill-health (excluding fatalities)	Employees	-	-
	Workers	-	-

12. Describe the measures taken by the entity to ensure a safe and healthy workplace.

To control safety concerns and raise awareness of the value of healthy lives, we employ proactive and preventive actions. We have implemented several safeguards, including various audits, emergency preparedness action plans, fire safety measures, emergency training and other focused initiatives. Kaizens are made and implemented across the Company.

Safety hazards pertaining to all the activities carried out inside our manufacturing plants are timely identified, and the risk levels are attempted to bring to an acceptable level. Moreover, controls pertaining to safety hazards are periodically reviewed. We check and review our procedures to ensure a safe and healthy workplace are adhered to and any deviation is reported and acted upon timely to prevent repetition.

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Elecon Engineering Company Limited

As per the hierarchy of controls, we are focused on the elimination of hazards rather than taking only corrective actions. Periodic/refreshing training and various awareness sessions are also a part of the measures for a safe and healthy workplace.

13. Number of Complaints on the following made by employees and workers:

	FY 2022-23	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22	FY 2021-22
	Filed during the year	Pending resolution at the end of year	Remarks	Filed during the year	Pending resolution at the end of year	Remarks
Working Conditions	-	-	NA	-	-	NA
Health & Safety	-	-	NA	-	-	NA

We conduct quarterly safety meeting that include all relevant stakeholders. Suggestions are taken from employees and workers proactively. The committee investigates the suggestion and implements it wherever relevant from time to time thus preventing any mishaps.

1. Assessments for the year:

thus preventing any mishaps. Assessments for the year:
	% of your plants and offces that were assessed (by entity or statutoryauthorities or third parties)
Health and safetypractices	100*
WorkingConditions	100*

*Third party assessments are carried out viz. IMS audit by TUV Rheinland. We also undertake external safety audit as per new amendment in BIS 14489 and, approved accredited laboratories carry out workplace condition monitoring on timely basis.

1. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions.

Our actions are addressed based on recommendations received by assessments in order to mitigate the risk & concerns arising at working locations proactively with horizontal deployment.

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity.

Through our Stakeholder Engagement and Materiality Assessment process, we have identified important internal and external groups of stakeholders. These stakeholders play an important role in activities related to Elecon and can help our company shape a sustainable future.

1. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Stakeholder Group	Whether identifed as Vulnerable & Marginalized Group (Yes/No)	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website, Other)	Frequency of engagement (Annually/ Half yearly/ Quarterly / others – please specify)	Purpose and scope of engagement including key topics and concerns raised during such engagement
Community	No	Direct engagement, CSR partners	As and when required	To have an overview on the implementation and success of the projects

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63[rd] Annual Report 2022 - 23

Shareholders/Investors	No	Email, SMS, Newspaper advertisement, website	Annually/ Half yearly/ Quarterly	Annual Financial statements and other related information, awareness programme on requirement for dematerialization of shares
Suppliers & Contractors	No	Regular supplier and contractor meets	As and when required	To resolve supplier and contractor concerns and encourage suppliers to adhere to Elecon’s policies
Employees	No	Meetings, Email, SMS, Intranet, Posters, Slogans	Monthly/Quarterly meetings and continuous communications	Occupational Health & Safety and other Department updates
Regulatory Bodies	No	Direct engagement	As and when required	To comply with applicable regulations
Customers	No	Direct engagement, Customer satisfaction survey, Customer feedback	As and when required	To ensure product quality and safety, high customer satisfaction

PRINCIPLE 5: Businesses should respect and promote human rights

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

following format:
Category	FY 2022-23			FY 2021-22
	Total (A)	No. of employees / workers covered (B)	% (B/A)	Total (C)	No. of employees / workers covered (D)	% (D / C)
	Employees
Permanent	631	143	22.66*	565	73	12.92
Other than Permanent
Total Employee	631	143	22.66*	565	73	12.92
	Workers
Permanent	1185	-	-	930	-	-
Other than Permanent
Total Workers	1185	-	-	930	-	-

*We are in the process of implementing training and awareness using an online platform which will increase the scale and scope of trainings and trainees in the Company.

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Elecon Engineering Company Limited

2. Details of minimum wages paid to employees and workers, in the following format:

Category		FY 2022-23	FY 2022-23	FY 2022-23	FY 2022-23		FY 2021-22	FY 2021-22	FY 2021-22	FY 2021-22
	Total (A)	Equal to Minimum Wage		More than Minimum Wage		Total (A)	Equal to Minimum Wage		More than Minimum Wage|
		No. (B)	% (B / A)	No. (C)	% (C / A)		No. (E)	% (E / D)	No. (F)	% (F / D)
		Employees (Permanent and Other than Permanent)
Male	613	-	-	613	100.00	550	-	-	550	100.00
Female	18	-	-	18	100.00	15	-	-	15	100.00
		Workers (Permanent and Other than Permanent)
Male	1185	57	4.81	1128	95.18	930	15	1.61%	915	98.38
Female	-	-	-	-	-	-	-	-	-	-

3. Details of remuneration/salary/wages, in the following format:

	Male	Male	Female	Female
	Number	Median remuneration/ salary/wages of respective category (in)|Number|Median remuneration/<br>salary/ wages of<br>respective category<br>(in)
Board of Directors (BoD)	6	12,84,000*	1	13,18,000*
Key Managerial Personnel	1	50,74,812	1	20,11,558
Employees other than BoD and KMP	611	6,40,871	17	8,48,871
Workers	1185	1,99,536	-	-

• It is inclusive of remuneration, sitting fees with commission payable to the Directors for FY 2022-23.

• Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No)

• Yes. The HR Department and respective Business Heads are responsible for addressing human rights-related issues.

• Describe the internal mechanisms in place to redress grievances related to human rights issues.

Yes. The HR Department is the focal point of contact for any human rights issue. A cross-functional team is formed to verify and investigate if an issue is reported. After identifying and resolving the issue, a report is prepared, and all business heads are made aware of it for precautionary measures. In case of any severe human rights issues, the Board is presented with the report findings and further action to avoid repetition.

6. Number of Complaints on the following made by employees and workers:

Category	FY 2022-23	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22	FY 2021-22
	Filed during the year	Pending resolution at the end of year	Remarks	Filed during the year	Pending resolution at the end of year	Remarks
Sexual Harassment	-	-	NA	-	-	NA
Discrimination at workplace	-	-	NA	-	-	NA
Child Labour	-	-	NA	-	-	NA
Forced Labour/ Involuntary Labour	-	-	NA	-	-	NA
Wages	-	-	NA	-	-	NA
Other human rights related issues	-	-	NA	-	-	NA

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63[rd] Annual Report 2022 - 23

1. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

We are dedicated towards preventing harassment in the workplace, particularly sexual harassment, and have zero tolerance for such behavior. We support reporting any concerns about harassment and take complaints about it or any unpleasant or uncomfortable behavior seriously. Committee have been established to investigate complaints of sexual harassment and to suggest appropriate action where necessary.

We have a Prevention of Sexual Harassment (POSH) Policy and Human Rights Policy that defines the mechanism of resolving any discrimination and harassment case, which has set guidelines for members of the grievance redressal mechanism.

8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)

Yes, we encourage our suppliers to adhere with our Supplier Code of Conduct and other policies. Our Supplier Code of Conduct can be viewed at https://www.elecon.com/views/templates/admin-uploads/Investors/Policies/Supplier%20 Code%20of%20Conduct-2023.pdf.

1. Assessments for the year:

Code%20of%20Conduct-2023.pdf. Assessments for the year:
	% of plants and offces that were assessed (by entity or statutory authorities or third parties)
Child labour	100%. Our HR team takes a survey by randomly selecting employees and contractors for evaluation. An external auditor verifes and assesses the processes followed by our HR team. Regulatory inspectors also verify the processes being followed in our manufacturing plants.
Forced/involuntary labor
Sexual harassment
Discrimination at workplace
Wages
Others – please specify

1. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 9 above.

There were no significant risks / concerns arising from the human rights assessments.

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment

We recognize that the climate change is not just an environment concern but business risk also and it is aware of its responsibility towards the environment. We have consistently invested in technology upgradation by means of our in-house research and development department to develop the products which are more efficient and continuous measures are being adapted for energy conservation.

We have taken various steps to protect and restore the environment through the installation of solar panels, rainwater harvesting systems, water recycling, and using treated wastewater for plantation activities, and installation of LED fitting aids in reducing carbon emissions.

Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

(in Giga Joules)

		(in Giga Joules)
Parameter	FY 2022-23	FY 2021-22
Total electricity consumption (A)	42,822.42	26,973.03
Total fuel consumption (B)	36,003.14	33,091.27
Energy consumption through other sources (Renewable Energy) (C)	49,702.65*	47,300.55*
Total energy consumption (A+B+C)	1,28,528.21	1,07,364.85
Energy intensity per rupee of turnover (Total energy consumption/ turnover in rupees) – GJ/lakh INR	10.74	11.12
Energy intensity (optional) – the relevant metric may be selected by the entity	-	-

*Small part of our solar rooftop electricity generated is supplied to the grid and the same is not included in this calculation as the value is not significant.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No Such assessment or evaluation has been carried out during the year.

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Elecon Engineering Company Limited

1. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

Not Applicable, as we do not have any recognized sites/facilities as a Designated Consumer (DC) under Perform, Achieve & Trade scheme.

1. Provide details of the following disclosures related to water, in the following format:

Parameter	FY 2022-23	FY 2021-22
Water withdrawal bysource (in kilolitres)
(i) Surface water	-	Not available, we have recently implemented procedures to measure water consumed and recycled by installing water meters wherever necessary.
(ii) Groundwater	155,261.00
(iii) Third party water	-
(iv) Seawater / desalinated water	-
(v) Others	-
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)	155,261.00
Total volume of water consumption (in kilolitres)	155,261.00*
Water intensity per rupee of turnover (Water consumed / turnover) – KL/INR Lakh	12.97
Water intensity (optional) – the relevant metric maybe selected bythe entity	NA

*18,987 kilolitres consumption of recycled water is not considered in this calculation as per the definition in the regulation.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No such assessment or evaluation has been carried out during the year.

1. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.

Yes. Our approach to water stewardship focuses on minimizing our water intake through effective water use. We recycle all our used water after treatment to maintain and develop our green belt. We have also installed rainwater harvesting systems throughout our sizable industrial facility which is collected in our rainwater pit to replenish our groundwater level.

1. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter	Units	FY 2022-23	FY 2021-22
NOx#	mg/Nm3	15.41	11.00
SOx#	mg/Nm3	9.63	7.00
Particulate matter (PM)*#	mg/Nm3	26.00	22.00
Persistent organic pollutants (POP)	mg/Nm3	Not Available	Not Available
Volatile organic compounds (VOC)	mg/Nm3	Not Available	Not Available
Hazardous air pollutants (HAP)	mg/Nm3	Not Available	Not Available
Others – please specify	mg/Nm3	Not Available	Not Available

*Particulate matter (PM) 2.5

#The values have been measured quarterly and an average of it is mentioned. The location of measurement is the factory gate of our manufacturing unit.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, the name of the external agency.

Yes, independent assessment has been carried out by external third-party agency. This agency is National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited and Ministry of Environment, Forest and Climate Change (MoEF) approved.

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63[rd] Annual Report 2022 - 23

1. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

Parameter	Units	FY 2022-23	FY 2021-22
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	MtCO2e	2,060.90	1,903.37
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	MtCO2e	8,445.53	5,319.68
Total Scope 1 and Scope 2 emissions per rupee of turnover	MtCO2e/ INR Lakh	0.88	0.82
Total Scope 1 and Scope 2 emission intensity (optional) – the relevant metric may be selected by the entity		NA	NA

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No such independent assessment has been carried out during the year ended March 2023.

1. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

Yes, this year we have set up a 2 MW capacity of solar rooftop which has helped the organization to reduce the GHG emission. In addition, we have our own windfarm for generating electricity, which is given to the grid and the unit credits are being adjusted in our electricity bill. We have a total installed capacity of 4.7MWh in solar rooftop and 13.85MWh in windfarms.

Energy conservation tasks and activities are taken up each year at our units to reduce energy consumption. This includes replacing old high electricity-consuming light fixtures with low electricity-consuming led-light fixtures and automating their switching action to avoid human error. We regularly maintain and replace our equipment to achieve high energy efficiency. We are continuously increasing efforts to replace our fuel consuming equipment with the electricity-based equipment in order to reduce GHG emissions and to conserve energy uses.

1. Provide details related to waste management by the entity, in the following format:

Parameter	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22
Total Waste generated (in metric tonnes)
Plastic waste (A)	0.59		0.30
E Waste (B)	-		2.60
Bio medical waste (C)	-		-
Construction and Demolition Waste (D)	-		-
Battery Waste (E)	7.26		6.17
Radio-active waste (F)	-		-
Hazardous waste. Please specify, if any. (G)	Waste	Weight (Mt)	Waste	Weight (Mt)
	Used Oil	93.20	Used Oil	69.93
	Discarded containers, barrels, carboys	49.56	Discarded containers, barrels, carboys	41.99
	Paint	0.13	Paint	0.13
Non-hazardous waste generated (Glass, Metal, Paper, etc (H) (Break-up by composition i.e. by materials relevant to the sector)	Waste	Weight(Mt)	Waste	Weight(Mt)
	Wooden Waste	257.92	Wooden Waste	227.90
	MS Scrap	4,362.79	MS Scrap	4,017.43
	CI Scrap	297.12	CI Scrap	366.21
	Paper Scrap	6.93	Paper Scrap	4.81
	Aluminum	17.08	Aluminum	22.34
	FoundrySlagPB	7.97	FoundrySlagPB	5.41
	Burnt Sand	5,515.50	Burnt Sand	4,660.00
Total (A to H) (MT)	10,615.05		9,425.22

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Elecon Engineering Company Limited

For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)

metric tonnes)
Parameter	FY 2022-23	FY 2021-22
Category of waste
(i) Recycled*	5,050.86	4,723.10
(ii) Re-used*	5,565.06	4,701.99
(iii) Other recovery operations	-	-
Total	10,615.92	9,425.09

*Waste recovery is done internally as well as through authorized recyclers.

For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)

Parameter	FY 2022-23	FY 2021-22
Category of waste
(i) Incineration	0.10	0.10
(ii) Landflling	-	-
(iii) Other recovery operations	-	-
Total	0.10	0.10

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

• No. During our ISO 14001 external audit, the waste collection procedure and data is verified as a part of the process.

• Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your Company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

We monitor waste management practices vigorously. Automated machining of gear parts is done in such a way as to take care of this aspect by reducing the generation of metal scraps. We generate metal scrap in significant volume and is reused in our foundry shop for making castings. The hazardous waste (used oil) contaminated empty containers (carboys, tins, cans, etc.) generated is disposed of as per the regulatory requirement to authorized recycler. We generate a significant amount of burnt sand from our foundry which is then used by recyclers in the infrastructure and construction sector.

1. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please specify details in the following format:

S. No.	Location of operations/offces	Type of operations	Whether the conditions of environmental approval / clearance are being complied with? (Y/N) If no, the reasons thereof and corrective action taken, if any.
Not Applicable, as our plants/ offces are not situated in ecological sensitive areas where environmental approval/ clearance is required.

1. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:

current fnancial year:
Name and brief details of project	EIA Notifcation No.	Date	Whether conducted by independent external agency (Yes/No)	Results communicated in public domain (Yes/No)	Relevant Web link
Environmental impact assessments are not applicable to us, and we have not performed the same during the fnancial year ended March 2023.

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63[rd] Annual Report 2022 - 23

1. Is the entity compliant with the applicable environmental law/regulations/guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format: We are compliant with.

with.
S. No.	Specify the law / regulation / guidelines which was not complied with	Provide details of the non-compliance	Any fnes / penalties / action taken by regulatory agencies such as pollution control boards or bycourts	Corrective action taken, if any
Not applicable, as we have not violated any ruled mentioned in the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act for the year ended March 2023.

PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

Essential Indicators

1. a. Number of affiliations with trade and industry chambers/associations.

   • We are associated with 9 trade and Industry chambers/Associations

2. b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such a body) the entity is a member of/affiliated to.

Sr. No. Name of the trade and industry chambers/ associations Reach of trade and industry chambers/ associations (State/National) 1. Confederation of Indian Industry (CII) National 2. Federation Gujarat Industries (FGI) State 3. Gujarat Chamber of Commerce & Industry (GCCI) State 4. Central Gujarat Chamber of Commerce & Industry (CGCCI) State 5. Indo-German Chamber of Commerce (IGCC) National 6. EEPC India National 7. Vitthal Udyognagar Industries Association Local 8. Indian Institute of Materials Management National 9. Quality Circle Federation of India (QCFI) National Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from regulatory authorities.	Sr. No.	Name of the trade and industry chambers/ associations	Name of the trade and industry chambers/ associations	Name of the trade and industry chambers/ associations	Reach of trade and industry chambers/ associations (State/National)
	1.	Confederation of Indian Industry (CII)			National
	2.	Federation Gujarat Industries (FGI)			State
	3.	Gujarat Chamber of Commerce & Industry (GCCI)			State
	4.	Central Gujarat Chamber of Commerce & Industry (CGCCI)			State
	5.	Indo-German Chamber of Commerce (IGCC)			National
	6.	EEPC India			National
	7.	Vitthal Udyognagar Industries Association			Local
	8.	Indian Institute of Materials Management			National
	9.	Quality Circle Federation of India (QCFI)			National
Name of Authority			Brief of the Case	Corrective Action Taken
Not applicable, as no such adverse order is received from any authority for which corrective action must be taken by our Company for the year ended March 2023.

1. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from regulatory authorities.

PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

fnancial year.
Name and brief details of project	SIA Notifcation No.	Date of notifcation	Whether conducted by independent external agency (Yes / No)	Results communicated in public domain (Yes/No)	Relevant Web link
Not Applicable

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Elecon Engineering Company Limited

1. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format:

S. No.	Name of Project for which R&R is ongoing	State	District	No. of Project Affected Families (PAFs)	No. of Project Affected Families (PAFs)	Amounts paid to PAFs in the FY (In INR)
Not Applicable

1. Describe the mechanisms to receive and redress grievances of the community.

We have grievance redressal mechanism in our Human Rights Policy. Our Board level CSR Committee is responsible to redresses any community related grievances.

1. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

	FY 2022-23	FY 2021-22
Directly sourced from MSMEs/ small producers	51.60	41.23
Sourced directly from within the district and neighboring districts	49.02	40.82

PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

We have divided our operational geography amongst branches. Each branch is responsible for customers in their respective geography. We have deployed service personnel in each of our geography. Our service personnel are technically skilled and are provided regular training.

Our customers can raise issues or complaints in the respective branches or online in our central Customer Resolution Management System. These details are made available in our handbook to every customer. After lodging of a complaint, we deploy our competent personnel to resolve the complaint. After resolution, the service personnel shall inform the customer of the preventive action to be taken to avoid further complaints and safe operations of our equipment.

Complaints are reported to all concern HOD’s/CEO/Vice President on Monthly basis and a Management Review Meeting (M.R.M.) is carried out every six months.

1. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

	As a percentage to total turnover
Environmental and socialparameters relevant to theproduct	81.78
Safe and responsible usage	100.00
Recyclingand/or safe disposal	81.78

3. Number of consumer complaints in respect of the following:

	FY 2022-23	FY 2022-23	FY 2022-23	FY 2021-22	FY 2021-22	FY 2021-22
S. No.	Received during the year	Pending resolution at end of year	Remarks	Received during the year	Pending resolution at end of year	Remarks
Data privacy	-	-	-	-	-	-
Advertising	-	-	-	-	-	-
Cyber-security	-	-	-	-	-	-
Delivery of essential services	-	-	-	-	-	-
Restrictive Trade Practices	-	-	-	-	-	-
Unfair Trade Practices	-	-	-	-	-	-
Other (Consumer Complaints)	263	3	Our consumers contacted our service team for training and operations of our products.	232	0	Our consumers contacted our service team for training and operations of our products

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63[rd] Annual Report 2022 - 23

1. Details of instances of product recalls on account of safety issues:

	Number	Reasons for recall
Voluntary recalls	NIL
Forced recalls

1. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy.

2. Yes, we secure our digital data and maintain privacy through various mechanisms. We have our own internal IT policy which is adhered to.

4. https://www.elecon.com/views/templates/admin uploads/Investors/Policies/Data%20Privacy%20and%20Cyber%20 -

5. Security%20Policy 2023.pdf.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essentialservices; cyber security and data privacy of Consumers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.

Nil

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