ELECON

ISO 9001:2015
ISO 14001:2015
ISO 45001:2018

ELECON
GEARING THE FUTURE

75 years of gearing the future

2nd June, 2026

To,

| The Manager (Listing),
The BSE Ltd.
Mumbai | The Manager (Listing),
National Stock Exchange of India Ltd.
Mumbai |
| --- | --- |
| Company’s Scrip Code: 505700 | Company’s Scrip Code: ELECON |

Sub.: Business Responsibility and Sustainability Report (BRSR) of the Company for the Financial Year 2025-26

Ref.: Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

In terms of the subject referred Regulation, we hereby submit the Business Responsibility & Sustainability Report (BRSR) of the Company for the Financial Year 2025-26. The same is also available on the website of the Company at www.elecon.com.

You are requested to take the same on your record.

Thanking you.

Yours faithfully,

For Elecon Engineering Company Limited,

Isarani
Digitally signed by
Isarani Bhartiben

Bhartiben
Lalitkumar
Date: 2026.06.02
20:23:47 +05'30'

Bharti Isarani
Company Secretary & Compliance Officer

Encl.: As above

Gearing industries. Gearing economies.

ELECON ENGINEERING COMPANY LIMITED, Anand - Sojitra Road, Vallabh Vidyanagar - 388 120, Gujarat, India. Tel.: +91-2692-238701, 238702

CIN L29100GJ1960PLC001082 | [email protected] | www.elecon.com

Corporate Overview
Statutory Reports
Financial Statements

ANNEXURE – E TO BOARD’S REPORT

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

Elecon Engineering Company Limited exemplifies industry leadership and innovation in the Transmission business while offering integrated solutions across the entire value chain of material handling systems. In alignment with the evolving standards of our peers, we are committed to fostering a culture of transparency, accountability, and collaboration with our stakeholders to drive sustainable development that benefits all.

Recognising the growing importance of Environmental, Social, and Governance (ESG) factors within our industry, we have embedded these principles deeply into our corporate strategy. By aligning our practices with global benchmarks and industry leaders, we aim to minimise our environmental footprint, contribute positively to society, and uphold the highest standards of governance. This commitment reflects our dedication to creating long-term value for all stakeholders while addressing the broader impact of our operations on society and the environment.

Note: Previous year figures were restated wherever required for better comparability.

SECTION A: GENERAL DISCLOSURES

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 office address	Anand-Sojitra Road, Vallabh Vidyanagar - 388 120,
Dist. Anand, Gujarat, India.
5.	Corporate address	Anand-Sojitra Road, Vallabh Vidyanagar - 388 120,
Dist. Anand, Gujarat, India.
6.	E-mail id	[email protected]
7.	Telephone	+91-2692-238701
8.	Website	www.elecon.com
9.	Financial year for which reporting is being done	2025-26
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	Mrs. Bharti L. Isarani, Company Secretary &
Compliance Officer
+91-2692-238701 [email protected]
13.	Reporting boundary	Standalone Basis
14.	Name of Assurance provider	CNK & Associates LLP
15.	Type of Assurance obtained	Reasonable Assurance – BRSR Core KPIs
Limited Assurance – Essential Indicators

II. Products/services

16. 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, Repairs & Maintenance	Electrical equipment, General purpose and Special purpose Machinery & Equipment, Transport equipment	100%

Elecon Engineering Company Limited

68
66th Annual Report 2025-26

ELECON
GEAVING THE FUTURE

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	61.62%
2	Bulk Material Handling Equipment	29151	36.06%
3	Repair and maintenance of bearings, gears, gearing and driving element	29138	1.67%
4	Repair and maintenance of lifting and handling equipment	29158	0.65%

III. Operations

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

Location	Number of plants	Number of offices	Total
National	2	13	15
International*	-	-	-

*However, Elecon has 4 manufacturing & assembly centers and 10 sales offices through its foreign subsidiaries

Markets served by the entity:

a. Number of locations

Locations	Number
National (No. of States)	30
	(24 States & 6 UT)
International (No. of Countries)	32

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

Exports constitutes 8.01% 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

Details at the end of Financial Year:

a. Employees and workers (including differently abled)

Sr. No.	Particulars	Total (A)	Male		Female
			No. (B)	% (B / A)	No. (C)	% (C / A)
EMPLOYEES
1.	Permanent (D)	939	913	97.23%	26	2.77%
2.	Other than Permanent (E)
3.	Total employees (D + E)	939	913	97.23%	26	2.77%
WORKERS
4.	Permanent (F)	1,513	1,510	99.80%	3	0.20%
5.	Other than Permanent (G)
6.	Total workers (F + G)	1,513	1,510	99.80%	3	0.20%

Corporate Overview

Statutory Reports

Financial Statements

b. Differently abled Employees and workers:

Sr. No.	Particulars	Total (A)	Male		Female
			No. (B)	% (B/A)	No. (C)	% (C/A)
DIFFERENTLY ABLED EMPLOYEES
1.	Permanent (D)	7	6	85.71%	1	14.29%
2.	Other than Permanent (E)
3.	Total differently abled employees (D + E)	7	6	85.71%	1	14.29%
DIFFERENTLY ABLED WORKERS
1.	Permanent (F)	-	-	-	-	-
2.	Other than Permanent (G)
3.	Total differently abled workers (F + G)	-	-	-	-	-

Participation/Inclusion/Representation of women:

	Total	No. and percentage of Females
	(A)	No. (B)	% (B / A)
Board of Directors	8	1	12.50%
Key Management Personnel*	1	1	100.00%

*Excluding Key Management Personnel covered under Board of Directors
Mr. Narasimhan Raghunathan, ceased to be Chief Financial Officer & Key Management Personnel (KMP) w.e.f. January 31, 2026. Therefore, on March 31, 2026 one KMP i.e. Company Secretary is covered in above disclosure.

Turnover rate for permanent employees and workers (in %)

Particulars	FY 2025-2026 (Turnover rate in Current FY)			FY 2024-25 (Turnover rate in Previous FY)			FY 2023-24 (Turnover rate in the year prior to Previous FY)
	Male	Female	Total	Male	Female	Total	Male	Female	Total
Permanent Employees	8.13	12.50	8.26	9.30	4.55	9.15	9.82	11.54	9.88
Permanent Workers	52.63	-	52.63	8.00	-	8.00	38.10	-	38.10

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

(a) Names of Holding / Subsidiary / Associate Companies / Joint

Sr. 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
11	Benzlers Italia s.r.l.	Step Down Subsidiary	100	No
12	Elecon Radicon Africa Pty. Ltd.	Step Down Subsidiary	100	No
13	Grupo Radicon SA De CV	Step Down Subsidiary	100	No

*Eimco Elecon (India) Limited ceased to be Associate Company w.e.f. April 23, 2025.

Elecon Engineering Company Limited

ELECON

GENETICS INSTITUTE

VI. CSR Details

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

(ii) Turnover (in ₹) - ₹ 2,01,604 Lakhs (FY 2025-2026)
(iii) Net worth (in ₹) - ₹ 2,04,884 Lakhs (FY 2025-2026)

VII. Transparency and Disclosures Compliances

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

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 2025-2026 (Current Financial Year)			FY 2024-2025 (Previous Financial Year)
		Number of complaints filed during the year	Number of complaints pending resolution at close of the year	Remarks	Number of complaints filed during the year	Number of complaints pending resolution at close of the year	Remarks
Communities	Yes	-	-	NA	-	-	NA
Investors (other than shareholder)	Yes	-	-	NA	-	-	NA
Shareholders	Yes	14	-	NA	11	-	NA
Employees and workers	Yes	-	-	NA	-	-	NA
Consumers	Yes	382	34	NA	583	23	NA
Value Chain Partners	Yes	-	-	NA	-	-	NA
Other (please specify)	-	-	-	NA	-	-	NA

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

Overview of the entity's material responsible business conduct issues

Sr. No.	Material issue identified	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 Product	Opportunity	Our R&D team is dedicated to enhance our product range to minimise electricity and oil consumption during operation. Both our existing and upcoming products are focused on use of recyclable materials.	-	Positive

66^{\text{th}} Annual Report 2025-26

Corporate Overview
Statutory Reports
Financial Statements

Sr. No.	Material issue identified	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)
2	Renewable Energy	Opportunity	We remain committed to advancing renewable energy by transitioning to solar and wind power, significantly expanding our clean energy footprint. This shift not only supports environmental sustainability but also contributes to reducing overall energy costs. Our current renewable energy capacity spans both solar and wind sources, and we are further strengthening this portfolio by commissioning additional capacity in the near term. These initiatives highlight our dedication to environmental responsibility and demonstrate a proactive approach toward increasing the adoption of clean energy.	-	Positive
3	Sustainable supply chain	Opportunity	The Company values long-term relationships with suppliers, viewing them as essential partners in growth. We regularly organise Strategic Partner Meetings to strengthen these bonds, promote open communication, and foster collaboration. This approach ensures mutual success, aligns strategic goals, and drives sustainable growth through shared innovation and partnership. In line with its sustainability commitments, the Company also undertakes ESG assessments of its significant supply chain partners through a structured checklist-based approach.	-	Positive
4	Occupational Health & Safety	Risk	Neglecting health and safety can disrupt smooth operations, reduce workforce availability and potentially result in legal action. Ensuring robust health and safety measures is crucial to maintaining operational efficiency, protecting employee well-being, and avoiding costly litigation. This proactive approach safeguards the Company’s productivity and reputation.	We are enhancing our safe work practices/procedures by automating most of our machinery and working procedures. In addition, we are working towards increasing the frequency and coverage of our training and awareness programmes.	Negative

Elecon Engineering Company Limited
71

66th Annual Report 2025-26

Sr. No.	Material issue identified	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)
5	Training and Skill Development	Opportunity	Our skill enhancement and training programmes boost efficiency and help retain our highly skilled workforce. By investing in continuous learning and professional development, we ensure our employees remain competent and engaged, leading to improved performance and long-term retention of specialised talent. This commitment to growth drives our overall success and competitiveness.	-	Positive
6	Stakeholder Engagement	Opportunity	As we strive to become a more sustainable business, including diverse stakeholders in our growth journey is essential. We incorporate their feedback into our strategic planning and regularly engage with employees, investors, suppliers, and customers. Through initiatives like employee engagement programmes, investor meetings, and vendor conferences, we ensure ongoing collaboration and alignment with our sustainability goals.	-	Positive
7	Ethical Behavior	Opportunity	Adhering to ethical behavior, as outlined in our Code of Conduct, promotes good governance and ensures compliance with regulatory standards. Our Company places significant emphasis on ethical conduct and compliance, and it is one of our core values. This commitment fosters a positive organisational culture, upholding integrity, accountability, and responsible business practices.	-	Positive

Corporate Overview
Statutory Reports
Financial Statements

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

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 procedures. (Yes / No)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
3.	Do the enlisted policies 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/ certifications/labels/ standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle.	ISO 14001 (2015), ISO 45001 (2018), Great Place to Work certification, ISO 9001 (2015), API standards as per requirement, National Accreditation Board for Testing & Calibration Laboratories (NABL) certificate, CE/ATEX certification for certain products.
5.	Specific commitments, goals and targets set by the entity with defined timelines, if any.	Sustainability Commitments:
• Renewable Energy Investments: Strategic projects for enhancement from 3 MW to 3.3 MW windmill(s) and from 4 MW to 5 MW solar farms by end of this financial year 2026-27.
• SBTi Goals: The Company has committed to reduce absolute scope 1 and 2 GHG emissions 54.6% by FY 2033. The Company has also committed that 81.4% of its suppliers by emissions covering purchase of goods and services, and up and downstream transportation and distribution, by FY 2028.
• Adoption of EVs: Usage of electric vehicles /equipment into operations to reduce fossil fuel consumption resulting into minimisation of carbon emissions.
• Inclusivity & Awareness: Conducting sustainability-focused ongoing training and awareness programmes for value chain partners.

Elecon Engineering Company Limited

66th Annual Report 2025-26

Policy and management processes

Performance of the entity against specific commitments, goals and targets along-with reasons in case the same are not met.

Performance details:

Renewable Energy Investments: The Company had planned the installation of 3 MW of wind energy capacity and 4 MW of solar power capacity during the year. However, due to adverse climatic conditions, including high wind intensity and unseasonal monsoon activity, the project execution has been delayed. Consequently, the commissioning timeline has been extended to the financial year 2026-27.
SBTi Goals: In support of these commitments, the Company is actively increasing its reliance on renewable energy. With an existing installed capacity of 5.5 MW in solar and 13.25 MW in wind energy, the Company has achieved 20%-30% of its total energy consumption from renewable sources.
Environmental Stewardship: During the financial year, the Company constructed two rainwater recharge wells as part of its ongoing commitment to water conservation and sustainable resource management. These structures are designed to enhance groundwater recharge, reduce surface runoff, and support water availability in and around the Company's operational areas. Extended the pipe water line to cater re-use of treated water in our gardens / green belt area.
Adoption of EVs: The Company inducted three electric forklifts for internal material handling in workshops and ten e-kick scooters for employee mobility within the factory premises. This initiative is aimed at reducing dependence on fossil fuel-based transportation and lowering carbon emissions from internal operations.
Inclusivity & Awareness: The Company has initiated sustainability-focused training and awareness programmes for its value chain partners to promote responsible and inclusive business practices. As part of this effort, training has initially been imparted to a selected group of ten value chain partners, with a focus on enhancing their understanding of environmental, social, and governance (ESG) principles, strengthening compliance awareness, and encouraging the adoption of sustainable practices. This marks the start of an ongoing initiative, and the Company is committed to progressively expanding the reach of these capacity-building programmes in the coming years, further strengthening ESG awareness and integration across its value chain.
Data Centre Risk Mitigation: Although this was not a specific commitment under planned initiatives, the Company has relocated its data center to a new isolated and secured location in order to mitigate operational risks and potential hazards.
Energy saving due to regenerative test facility: The Company has implemented a regenerative load testing system for gearboxes using a dual-motor configuration, wherein one motor operates in drive mode through a Variable Frequency Drive (VFD) and the other functions in regenerative mode. This regenerative mechanism results in energy savings of approximately 60–70% of the applied load, thereby improving energy efficiency and significantly reducing overall power consumption during testing operations.

Corporate Overview
Statutory Reports
Financial Statements

Policy and management processes
P1 P2 P3 P4 P5 P6 P7 P8 P9

Governance, leadership and oversight

Statement by Director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure)

The Company continues to integrate Environmental, Social, and Governance (ESG) principles into its business strategy to ensure sustainable and long-term value creation. Sustainability remains central to our operations, with focused efforts on decarbonisation, resource efficiency, and responsible business practices.

During the year, the Company has made significant progress in its renewable energy and sustainability initiatives. Strategic projects for enhancement of 3.3 MW wind and 5 MW solar capacity are underway. In line with our Science Based Targets initiative (SBTi) commitments, the Company aims to reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 54.6% by FY 2033 and ensure that 81.4% of suppliers (by emissions) across the value chain are aligned by FY 2028.

In line with its sustainability commitments, the Company has also undertaken several initiatives focused on environmental conservation and decarbonisation. These include the construction of rainwater recharge wells to improve groundwater replenishment and reduce surface runoff, as well as the extension of treated water pipelines for reuse in greenbelt and landscaping activities. Further, the adoption of electric forklifts and e-kick scooters within operations has helped reduce dependence on fossil fuels and lower internal carbon emissions.

Additionally, the Company has initiated sustainability-focused training and awareness programmes for its value chain partners, with initial training imparted to ten partners to enhance ESG understanding, compliance awareness, and sustainable business practices. This initiative will be progressively expanded in the coming years. As part of its operational risk management efforts, the Company has also relocated its data centre to a secure and isolated facility to strengthen operational resilience and mitigate potential risks.

Looking ahead, the Company remains committed to strengthening its ESG performance through innovation, operational excellence, and collaborative partnerships. We will continue to set measurable targets, monitor progress transparently, and align our efforts with globally recognized sustainability frameworks to drive long-term sustainable growth.

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.
Does the entity have a specified 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.
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.

Elecon Engineering Company Limited

ELECON

GEWING THE FUTURE

Policy and management processes	P1	P2	P3	P4	P5	P6	P7	P8	P9
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
Compliance with statutory requirements of relevance to the principles, and, rectification of any non-compliances	Board of Directors and its Committee					Annual Basis
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
	The policies are periodically reviewed by the Board and its Committees as well as Auditors of respective functions like ISO Auditors, Internal Auditors and Secretarial Auditors, etc. In addition, Elecon is certified for ISO 9001, ISO 14001 and ISO 45001 which are assessments done by external audit agency namely TUV Rheinland. They assess the policies and procedures maintained by the organisation as part of the certification process. The Information security policy, privacy policy and risk management policy have been reviewed as part of this process. Elecon has documented management policies reviewed and approved by Management.

If answer to question (1) above is 'No' i.e. not all Principles are covered by a 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)
The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles (Yes/No)
The entity does not have the financial or/ human and technical resources available for the task (Yes/No)				Not Applicable
It is planned to be done in the next financial year (Yes/No)
Any other reason (please specify)

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 categorised 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.

66th Annual Report 2025-26

Corporate Overview

Statutory Reports

Financial Statements

Essential Indicators

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 people in respective category covered by the awareness programmes
Board of Directors	3	Recent Amendment in the SEBI Regulations, Micro Small and Medium Enterprises Development (MSMED) Act, 2006, Training of code of conduct, ESG development, Digital Personal Data Protection (DPDT) Act, 2023.	100.00%
Key Managerial Personnel	3	POSH, Skill Enhancement, Health & Safety, Leadership	100%
Employees other than BoD and KMPs	185	POSH, Values, Health & Safety, Human Rights & Culture, Skill Enhancement	98.40%
Workers	119	Health & Safety, Skill Enhancement, Quality & Manufacturing Circle Awareness	96.43%

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):

Monetary
	NGRBC Principle	Name of the regulatory/enforcement agencies/judicial institutions	Amount (In ₹ Lakhs)	Brief of the Case	Has an appeal been preferred? (Yes/No)
Penalty/ Fine	Principle 1	Superintendent of Central GST & Central Excise, Anand	5.69	Penalty was levied regarding non-compliances by our customer M/s. Volta Impex Pvt. Ltd. under GST Laws.	Yes
Penalty/ Fine	Principle 1	Dy. Commission of State Tax, Enforcement, Div – 8, Surat	11.99	Penalty was levied due to mismatch of name in ship to consignment	Yes
Settlement	-	None	-	Not applicable	Not applicable
Compounding fee	-	None	-	Not applicable	Not applicable

Note: 1) National Stock Exchange of India Limited (NSE) has levied penalty of ₹ 0.60 Lakhs for delayed submission of compliance under Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Company subsequently filed a waiver application and NSE vide letter dated September 22, 2025, favorably considered the request and waived the fine. 2) The Company has received a penalty order of ₹ 0.94 Lakhs from State GST Department, Chhattisgarh regarding mismatch of turnover of the Company as per TDS v/s Return - 3B. The Company duly preferred an appeal against the said Order, and the Appellate Authority vide order dated January 28, 2026 has passed an order in favour of the Company.

Non - Monetary
	NGRBC Principle	Name of the regulatory/enforcement agencies/judicial institutions	Amount (In ₹)	Brief of the Case
Imprisonment	-	None	-	Not applicable
Punishment	-	None	-	Not applicable

Elecon Engineering Company Limited

ELECON

GENMING THE FUTURE

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

Case Details	Name of the regulatory/ enforcement agencies/ judicial institutions
Penalty was levied regarding non-compliances by our customer M/s. Volta Impex Pvt. Ltd. under GST Laws.	Appeal to Appellate Authority against Superintendent of Central GST & Central Excise, Anand
Penalty was levied due to mismatch of name in ship to consignment	Appeal to Appellate Authority against Dy. Commission of State Tax, Enforcement, Div – 8, Surat

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/admin-uploads/Investors/Policies/Elecon-Code-of-Conduct.pdf,

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

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

Particulars	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Directors	-	-
KMPs	-	-
Employees	-	-
Workers	-	-

Details of complaints with regard to conflict of interest:

Particulars	2025-26 (Current Financial Year)		2024-25 (Previous Financial Year)
	Number	Remarks	Number	Remarks
Number of complaints received in relation to issues of Conflict of Interest of the Directors	-	Not Applicable	-	Not Applicable
Number of complaints received in relation to issues of Conflict of Interest of the KMPs	-	Not Applicable	-	Not Applicable

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.

Not applicable.

Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following format:

Particulars	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Number of days of account payables	84	79

Open-ness of business Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties, in the following format:

Parameter	Metrics	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Concentration of Purchases	a. Purchases from trading houses as % of total purchases	15.47%	14.45%
	b. Number of trading houses where purchases are made from	387	372
	c. Purchases from top 10 trading houses as % of total purchases from trading houses	53.59%	58.33%

66th Annual Report 2025-26

Corporate Overview

Statutory Reports

Financial Statements

Parameter	Metrics	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Concentration of Sales	a. Sales to dealers / distributors as % of total sales	10.43%	8.90%
	b. Number of dealers / distributors to whom sales are made	73	69
	c. Sales to top 10 dealers/ distributors as % of total sales to dealers / distributors	57.72%	59.37%
Share of RPTs in	a. Purchases (Purchases with related parties / Total Purchases)	12.06%	13.40%
	b. Sales (Sales to related parties / Total Sales)	6.33%	7.23%
	c. Loans & advances (Loans & advances given to related parties / Total loans & advances)	-	-
	d. Investments (Investments in related parties / Total Investments made)	29.63%	21.77%

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

Essential Indicators

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.

	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)	Details of improvements in environmental and social impacts
R&D	-	-	-
Capex	11.46%	14.08%	During the year, the Company made focused capital investments to enhance environmental and social performance.
			Transition to electric and lithium-ion battery-operated forklifts and stackers has reduced emissions, noise levels, and dependence on fossil fuels. Energy efficiency was improved through installation of an energy-efficient transformer and VRF/VRV air conditioning systems. Environmental management was strengthened with chip shredder machines, improved paint rooms with exhaust systems, and auto scrubber machines for better waste handling and workplace cleanliness. On the social front, deployment of hydraulic lifts, scissor tables, and boom lifts has improved ergonomics and reduced manual handling risks. Additional initiatives such as thermal imaging for preventive maintenance and procurement of an ambulance have further enhanced workplace safety and emergency preparedness.

Our R&D leverages advanced gear design, simulation tools, and bearing optimization to reduce friction, noise, and energy consumption, improving efficiency while lowering environmental impact. We also use digital modeling to optimize materials and enhance product reliability, supporting sustainable resource use.

Additionally, our predictive maintenance systems extend equipment life and reduce downtime, while precision automation and ergonomic solutions in manufacturing enhance safety, minimize risks, and improve overall employee well-being.

Elecon Engineering Company Limited

ELECON

GEARING THE FUTURE

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

Yes

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

The Company has established a comprehensive operating procedure for vendor approval, ensuring that all input materials are sourced exclusively from approved local and international suppliers. The Quality Assurance team conducts rigorous initial evaluations and periodic audits of vendors, particularly those supplying critical materials, while the Company is currently in the process of determining and strengthening relevant data and metrics in this area.

This framework is aligned with the Company's commitment to Environmental, Social, and Governance (ESG) principles, reinforcing sustainable, ethical, and transparent supply chain practices.

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.

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.

Our product line comprises products predominantly made of metals, accounting for around 99% of the composition. This metal content renders our products highly recyclable. The materials used, including ferrous and non-ferrous elements, contribute to a robust and sustainable life cycle lasting approximately 20-25 years. As a result, direct reclamation of our products for recycling post their life cycle is currently unviable.

Our product manual serves as a tool to raise awareness among customers, advocating for the recycling of used products through designated recyclers. At the end of their life cycle, our products do not generate plastic, e-waste, hazardous waste, or any other form of waste, aligning with our commitment to environmental sustainability.

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.

Yes, we are disposing the waste in line with the EPR requirement to registered recyclers.

PRINCIPLE 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 benefits		Paternity Benefits		Day Care facilities
		Number	%	Number	%	Number	%	Number	%	Number
Permanent Employees and Other than Permanent Employees
Male	913	913	100%	913	100%	-	-	-	-	-
Female	26	26	100%	26	100%	26	100%	-	-	-
Total	939	939	100%	939	100%	26	2.77%	-	-	-

66^{\text{th}} Annual Report 2025-26

Corporate Overview
Statutory Reports
Financial Statements

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

% of workers covered by
Category	Total (A)	Health insurance		Accident insurance		Maternity benefits		Paternity Benefits		Day Care facilities
		Number	%	Number	%	Number	%	Number	%	Number
Permanent Workers and Other than Permanent Workers
Male	1,510	1,510	100%	1,510	100	-	-	-	-	-
Female	3	3	100%	3	100	3	100%	-	-	-
Total	1,513	1,513	100%	1,513	100	3	0.20%	-	-	-

C. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format:

Particulars	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Cost incurred on wellbeing measures as a % of total revenue of the company	0.04%	0.03%

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

Benefits	2025-26 (Current Financial Year)			2024-25 (Previous Financial Year)
	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
Gratuity	97.50%	100%	Y	100%	100%	Y
ESI*	NA	NA	NA	NA	NA	NA
Others – Please Specify
Felicitation Scheme	100%	NA	NA	100%	NA	NA
NPS	7.03%	-	Y	5.50%	-	Y

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

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 emphasise on treating every individual with dignity and respect inside our organisation and throughout the supply chain. We also ensure that Human Rights Policy is strictly adhered in our premises and also encourages its supply chain partners to comply with our policy.

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

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

Gender	Permanent Employees		Permanent Workers
	Return to work rate	Retention rate	Return to work rate	Retention rate
Male	Not Applicable	Not Applicable	Not Applicable	Not Applicable
Female	NIL	100%*	NIL	Not Applicable
Total	-	100%*	-	-

Elecon Engineering Company Limited

ELECON

GENDER SCIENTIFIC INTELLIGENCE

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.

	Yes/No (If Yes, then give details of the mechanism in brief)
Permanent Employees	Yes*, we have 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.
Other than Permanent Employees
Permanent Workers
Other than Permanent Workers	Employees & Workers will 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 defined in the policy.

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

Membership of employees and workers in association(s) or Unions recognised by the listed entity

Category	2025-26 (Current Financial Year)			2024-25 (Previous Financial Year)
	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)	% (C / D)
Total Permanent Employees
Male	-	-	-	-	-	-
Female	-	-	-	-	-	-
Total Permanent Workers
Male	-	-	-	-	-	-
Female	-	-	-	-	-	-

Details of training given to employees and workers:

Category	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Total (A)	On Health and safety measures	On Skill upgradation
No. (B)	% (B / A)	No. (C)
Employees
Male	913	388
Female	26	15
Total	939	403
Workers
Male	1,510	1,455
Female	3	3
Total	1,513	1,458

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

Category	2025-26 (Current Financial Year)			2024-25 (Previous Financial Year)
	Total (A)	No. (B)	% (B / A)	Total (C)	No. (D)	% (D / C)
Employees
Male	913	861	94.30%	718	694	96.66%
Female	26	22	84.61%	22	22	100.00%
Total	939	883*	94.04%	740	716*	96.76%
Workers
Male	1,510	-	-	1,449	-	-
Female	3	-	-	3	-	-
Total	1,513	-	-	1,422	-	-

*Only employees joining before the cut-off date, i.e., December 31, are eligible for performance review

66th Annual Report 2025-26

Corporate Overview
Statutory Reports
Financial Statements

10 Health and safety management system:

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?

Yes, at Elecon, safety is ingrained as a fundamental value rather than just a priority. To mitigate safety incidents and emphasise the importance of well-being, we take proactive and preventive measures. These include safety audits, emergency preparedness plans, fire safety protocols, comprehensive training, and targeted initiatives. Our dedication to preventing injuries and occupational illnesses is reflected in our adherence to ISO 45001:2018 standards and similar guidelines, which we promote throughout our organisation. This comprehensive occupational health and safety management system underscores our commitment to ensuring a safe and healthy work environment for all employees. The detailed policy is available at https://www.elecon.com/views/templates/admin-uploads/Investors/Policies/EHS%20policy-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 ensure comprehensive risk management across our offices and manufacturing facility, we have implemented a systematic risk management procedure. This includes active involvement from engineers, production-in-charge personnel, and members of the Environment Health & Safety (EHS) team in conducting risk assessments and managing identified risks. Documentation, approval, and communication of risk mitigation plans to relevant stakeholders are integral steps in our risk management process. Our operations are guided by safety observations, rectification plans, and procedures encompassing Hazard Identification & Risk Assessment for all activities, contractor safety management, and regular external audits to maintain a safe and compliant workplace.

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 structured risk management approach in place to ensure safety across our offices and manufacturing facility. This involves engineers, production supervisors, and EHS team members actively participating in risk assessments and managing identified risks. Documenting, approving, and communicating risk mitigation plans to stakeholders is crucial. Our operations are guided by safety observations, rectification plans, and procedures covering Hazard Identification & Risk Assessment, contractor safety management, and routine external audits for workplace safety compliance.

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 members, have access to an external multispecialty reputed hospital in close proximity to our premises. This hospital is equipped with the latest facilities and infrastructure to provide comprehensive non-occupational medical and healthcare services. Additionally, we conduct awareness programmes conducted by experts on various topics such as good health habits, heart attack, varicose veins, orthopedic pain, and more to educate and empower our employees and their families.

Furthermore, all our employees are covered under a group health insurance policy that ensures access to a wide range of non-occupational medical and healthcare services. This coverage reinforces our commitment to supporting the well-being and health needs of our workforce and their loved ones.

Details of safety related incidents, in the following format:

Safety Incident/Number	Category	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Lost Time Injury Frequency Rate (LTIFR) (per one Million-person hours worked)	Employees	-	-
	Workers	0.17	0.18
Total recordable work-related injuries	Employees	-	-
	Workers	1	1
No. of fatalities	Employees	-	-
	Workers	-	-
High consequences for work-related injury or ill-health (excluding fatalities)	Employees	-	-
	Workers	-	-

Elecon Engineering Company Limited

ELECON

GEARING THE FUTURE

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

The entity maintains a safe and healthy workplace through a range of measures. These include routine safety audits, emergency preparedness plans, fire safety measures, and comprehensive training programmes. Hazards are promptly identified, and risk levels are mitigated to acceptable standards, with controls regularly reviewed and deviations addressed promptly. Adherence to safety protocols is closely monitored, with a focus on hazard elimination. Additionally, periodic training and awareness sessions reinforce safety practices, fostering a culture of safety across all operations. This holistic approach ensures that the entity prioritizes the well-being of its employees and creates a conducive environment for productive and safe work.

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

	2025-26 (Current Financial Year)			2024-25 (Previous Financial Year)
	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

14. Assessments for the year:

	% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices	100*
Working Conditions	100*

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

15. 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.

As part of its corrective and preventive actions, the Company has introduced enhancements in Personal Protective Equipment (PPE) by mandating the use of helmets with integrated face shields. This upgraded PPE requirement has been implemented and deployed across all applicable areas to strengthen employee protection against operational hazards.

Further our actions are addressed in form of Kaizens and Poka-yoke 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

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.

66^{\text{th}} Annual Report 2025-26

Corporate Overview

Statutory Reports

Financial Statements

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

Stakeholder Group	Whether identified as Vulnerable & Marginalised 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
Customers	No	Direct engagement, Customer satisfaction survey, Customer feedback	As and when required	To ensure product quality and safety, high customer satisfaction
Shareholders	No	Email, SMS, Newspaper advertisement, website	Annually/ Half yearly/Quarterly	Annual Financial statements and other related information
Employees	No	Meetings, Email, SMS, Intranet, Posters, Slogans	Monthly/ Quarterly meetings and continuous communications	Engagement Initiatives, Trainings and Policy updates, Occupational Health & Safety and other Department updates
Regulatory & Government	No	Direct engagement	As and when required	To comply with applicable regulations
Communities	No	Direct engagement, CSR partners	As and when required	To have an overview on the implementation and success of the projects
Vendors	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

PRINCIPLE 5: Businesses should respect and promote human rights

Essential Indicators

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

Category	2025-26 (Current Financial Year)			2024-25 (Previous Financial Year)
	No. of employees			No. of employees
	Total (A)	/ workers covered (B)	% (B/A)	Total (C)	/ workers covered (D)	% (D / C)
Employees
Permanent	939	278	30%	740	740	100%
Other than Permanent
Total Employee	939	278	30%*	740	740	100%
Workers
Permanent	1,513	1,513	100%	1,422	1,422	100%
Other than Permanent
Total Workers	1,513	1,513	100%	1,422	1,422	100%

*From April 1, 2026 onwards, we have made mandatory for all individuals to undergo training on the Human Rights policies through self-learning portals.

Elecon Engineering Company Limited

ELECON

GENETICS INSTITUTES

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

Category	2025-26 (Current Financial Year)					2024-25 (Previous Financial Year)
	Total (A)	Equal to Minimum Wage		More than Minimum Wage		Total (D)	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	913	-	-	913	100%	718	-	-	718	100%
Female	26	-	-	26	100%	22	-	-	22	100%
Workers (Permanent and Other than Permanent)
Male	1,510	165	11%	1,345	89%	1,419	62	4%	1,357	96%
Female	3	-	-	3	100%	3	-	-	3	100%

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

a. Median remuneration / wages:

	Male		Female
	Number	Median remuneration/salary/ wages of respective category	Number	Median remuneration/salary/ wages of respective category
Board of Directors (BoD)	7	20,11,000*	1	18,27,000*
Key Managerial Personnel	1	55,70,830#	1	27,59,880
Employees other than BoD and KMP	912	6,83,592	25	7,30,956
Workers	1,510	1,92,832	3	2,77,860

*It is inclusive of remuneration, sitting fees with commission payable to the Directors for FY 2025-26.

The Remuneration is taken only till Jan 2026, as ceased to be KMP w.e.f. January 31, 2026.

b. Gross wages paid to females as % of total wages paid by the entity, in the following format:

Particulars	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Gross wages paid to females as% of total wages	3.25%	2.27%

The percentage is calculated basis CTC (inclusive of Gratuity) of female Employees (Permanent & Other than Permanent) to that of total CTC of Employees (Permanent & Other than Permanent).

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.

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

	2025-26 (Current Financial Year)			2024-25 (Previous Financial Year)
	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

66^{\text{th}}
Annual Report 2025-26

Corporate Overview
Statutory Reports
Financial Statements

Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:

Particulars	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Total Complaints reported under Sexual Harassment on of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH)	-	-
Complaints on POSH as a % of female employees / workers	-	-
Complaints on POSH upheld	-	-

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.

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%20Code%20of%20Conduct-2023.pdf.

Assessments for the year:

	% of plants and offices 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. Regulatory inspectors also verify the processes being followed in our manufacturing plants related to Human Rights affairs.
Forced/involuntary labor
Sexual harassment
Discrimination at workplace
Wages
Others – please specify

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

The scope of reporting under this principle covers the Company's industrial and manufacturing sites, including on-site offices.

Elecon Engineering Company Limited

ELECON

GEAVING THE FUTURE

Essential Indicators

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

(In Giga Joules)

Parameter	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
From renewable sources (Giga Joules)
Total electricity consumption (A)	16,812	13,181
Total fuel consumption (B)	-	-
Energy consumption through other sources (Renewable Energy) (C)	-	-
Total energy consumption (A+B+C)	16,812	13,181
From non-renewable sources (Giga Joules)
Total electricity consumption (D)	66,566*	57,481
Total fuel consumption (E)	33,484	31,051
Energy consumption through other sources (F)	-	-
Total energy consumption from nonrenewable sources(D+E+F)	1,00,050	88,532
Total energy consumption (A+B+C+D+E+F)	1,16,862	1,01,713
Energy intensity per rupee of turnover (Total energy consumption/revenue from operations)	0.58	0.54
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total energy consumed / Revenue from operations adjusted for PPP)*** ((GJ/Lakh of adjusted turnover)	11.97	11.23
Energy intensity in terms of physical Output	-	-
Energy intensity (optional) – the relevant metric may be selected by the entity	-	-

This is calculated after adjusting for surplus renewable energy generated and transmitted to the grid.
Renewable energy generated during year (Windmill 30,274 Giga Joules & Solar 9,430 Giga Joules)
Intensity, in terms of physical output, is not applicable due to the diverse range of products manufactured, majority of measured in numbers rather than tonnage, making it challenging to track in standardised units.
**Purchasing power parity (PPP) conversion factor is 20.64 for the year 2026 & 20.66 for the year 2025 as per IMF data available at https://www.imf.org/external/datamapper/PPPEX@WEO/OEMDC/IND

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.

Yes, energy audit has been carried out by third party agency namely Swajal Technologies.

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 recognised sites/facilities as a Designated Consumer (DC) under Perform, Achieve & Trade scheme.

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

Parameter	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water	-	-
(ii) Ground water	1,30,238	2,33,856
(iii) Third party water	4	-
(iv) Seawater / desalinated water	-	-
(v) Others	-	-
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)	1,30,242	2,33,856
Total volume of water consumption (in kilolitres)	1,30,242	2,33,856*
Water intensity per rupee of turnover (Water consumed / turnover) – KL/₹ Lakh	0.65	1.25
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)	13.33	25.82
(Total water consumption / Revenue from operations adjusted for PPP)
Water intensity in terms of physical output	NA	NA
Water intensity (optional) – the relevant metric may be selected by the entity	-	-

66^{\text{th}} Annual Report 2025-26

Corporate Overview

Statutory Reports

Financial Statements

*78,905 kiloliters 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.

Yes, water audit has been carried out by certified water auditor under RGNGWTRI, Mr. Mitul Jain in March, 2026 and report is awaited.

Provide the following details related to water discharged:

Parameter	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water	-	-
- No treatment	-	-
- With treatment – please specify level of treatment	-	-
(ii) To Ground water (Gardening)	-	-
- No treatment	-	-
- With treatment – please specify level of treatment	78,905 (Tertiary)	93,807 (Tertiary)
(iii) To Sea water	-	-
- No treatment	-	-
- With treatment – please specify level of treatment	-	-
(iv) Sent to third-parties	-	-
- No treatment	-	-
- With treatment – please specify level of treatment	-	-
(v) Other	-	-
- No treatment	-	-
- With treatment – please specify level of treatment	-	-
Total water discharge (in kilolitres)	78,905	93,807

Our units implement initiatives to conserve freshwater by recycling treated wastewater, ensuring ZLD (Zero Liquid Discharge).

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.

Yes, water audit has been carried out by certified water auditor under RGNGWTRI, Mr. Mitul Jain in March, 2026 and report is awaited.

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

Yes. Our water stewardship strategy revolves around optimising water usage to minimise intake while maximising efficiency. Across all our company-owned facilities and offices, we prioritise water conservation and recycling efforts, aiming for Zero Liquid Discharge (ZLD). Following treatment, all wastewater is recycled to support the preservation and expansion of our green spaces. Moreover, we've implemented rainwater harvesting systems across our extensive industrial site, channeling collected rainwater into designated pits to replenish our groundwater levels.

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

Parameter	Units	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
NOx	MT	11.17	15.68
SOx	MT	0.17	0.19
Particulate matter (PM)*	MT	26.17	13.17
Persistent organic pollutants (POP)	MT	NA	NA
Volatile organic compounds (VOC)	M MT	0.42	0.33
Hazardous air pollutants (HAP)	MT	NA	NA
Others – please specify	NA	NA	NA

*This year we have calculated air emissions for 17 stacks 2025-26 using CPCB Standards.

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.

Elecon Engineering Company Limited

90
ELECON
GEARING THE FUTURE

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

Parameter	Units	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Total Scope 1 emissions (Break-up of the GHG into CO₂, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	MtCO₂e	2,578	2,501
Total Scope 2 emissions (Break-up of the GHG into CO₂, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	MtCO₂e	13,239	11,432
Total Scope 1 and Scope 2 emissions per rupee of turnover (Total Scope 1 and Scope 2 GHG emissions / Revenue from operations)	MtCO₂e/ ₹ Lakh	0.08	0.07
Total Scope 1 and Scope 2 emissions per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total Scope 1 and Scope 2 GHG emissions / Revenue from operations adjusted for PPP)	MtCO₂e/ ₹ Lakh	1.62	1.54
Total Scope 1 and Scope 2 emission intensity in terms of physical output	-	-	-
Total Scope 1 and Scope 2 emission intensity (optional) – the relevant metric may be selected by the entity	-	-	-

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.
Yes, carried out by the CNK & Associate LLP, to the extend numbers mentioned above.

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

To support its transition towards net-zero emissions in operations, the Company has installed renewable energy capacity of 5.5 MW in solar rooftops and 13.25 MW in wind farms. Through the utilisation of these renewable energy sources, the Company has successfully avoided CO emissions and reduced its overall carbon footprint.

Further, the Company had planned the installation of an additional 3.3 MW of wind energy capacity and 5 MW of solar power capacity during the year. However, due to adverse climatic conditions, including high wind intensity and unseasonal monsoon activity, the project execution has been delayed. Consequently, the commissioning timeline has been extended to June 2026.

The Company is also committed to reducing its greenhouse gas emissions in alignment with the Science-Based Targets initiative (SBTi). The target validation is planned to be completed during the current year, and the Company's emission reduction roadmap will be based on identified decarbonisation levers, including increased adoption of renewable energy, energy efficiency improvements, and fuel-switching initiatives.

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

Parameter	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Total Waste Generated (in metric tonnes)
Plastic waste (A)	11.62	11.56
E Waste (B)	-	3.71
Bio medical waste (C)	-	-
Construction and Demolition Waste (D)	-	-
Battery Waste (E)	4.37	4.14
Radio-active waste (F)	-	-
Hazardous waste. Please specify, if any. (G)	165.56	127.43
Other Non-hazardous waste generated (H) Please specify, if any (Break-up by composition i.e., by materials relevant to the sector)	15,391.12	14,463.59
Total (A + B + C + D + E + F + G + H)	15,572.67	14,610.43
Waste intensity per rupee of turnover (Total waste generated / Revenue from operations)	0.08	0.08
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total waste generated / Revenue from operations adjusted for PPP)	1.59	1.61
Waste intensity in terms of physical output NA	NA	NA
Waste intensity (optional) – the relevant metric may be selected by the entity	-	-

66th Annual Report 2025-26

Corporate Overview
Statutory Reports
Financial Statements

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

Parameter	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Category of Waste
(i) Recycled*	4,694.97	7,087.50
(ii) Re-used*	10,877.10	7,522.73
(iii) Other recovery operations	-	-
Total	15,572.07	14,610.23

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

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

Parameter	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Category of Waste
(i) Incineration	0.60	0.20
(ii) Landfilling	-	-
(iii) Other recovery operations	-	-
Total	0.06	0.20

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 closely monitor waste management techniques. Automated machining of gear parts addresses this issue by minimising the amount of metal scrap generated. We generate a substantial amount of metal scrap, which is then reused in our foundry shop to make castings. Hazardous waste (used oil) contaminated empty containers (carboys, tins, cans, etc.) are disposed of to an approved recycler in accordance with regulatory requirements. Our foundry produces a substantial volume of burnt sand, which is used by recyclers in the infrastructure and building industries.

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/offices	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/ offices are not situated in ecological sensitive areas where environmental approval/ clearance is required.

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

Name and brief details of project	EIA Notification 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 financial year ending March 31, 2026.

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66th Annual Report 2025-26

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:

Sr. No.	Specify the law / regulation / guidelines which was not complied with	Provide details of the non-compliance	Any fines / penalties / action taken by regulatory agencies such as pollution control boards or by courts	Corrective action taken, if any
-	-	-	-	-

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

Essential Indicators

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

We are associated with 8 trade and Industry chambers/ Associations

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	EEPC India	National
6	Vitthal Udyognagar Industries Association	Local
7	Indian Institute of Materials Management	National
8	Society of Indian Defence Manufacturers (SIDM)	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.

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 ending March 31, 2026.

PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Essential Indicators

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

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

Corporate Overview
Statutory Reports
Financial Statements

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

Sr. 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 ₹)
Not Applicable

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.

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

	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Directly sourced from MSMEs/ small producers	73.55%	52.40%
Sourced directly from within the district and neighboring districts	52.11%	46.48%

Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost:

Location	2025-26 (Current Financial Year)	2024-25 (Previous Financial Year)
Rural	-	-
Semi-Urban	85.69%	90.55%
Urban	0.56%	2.44%
Metropolitan	13.75%	7.01%

The percentage is calculated basis CTC (inclusive of Gratuity) of employees and workers to that of total CTC

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

Essential Indicators

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 sound and are being given regular training.

Our customers can raise issues or complaints in the respective branches or online in our central Customer Resolution Management. 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/Business Heads on Monthly basis and a Management Review Meeting (M.R.M.) is carried out every six months.

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

	As a percentage to total turnover
Environmental and social parameters relevant to the product	63.29
Safe and responsible usage	100.00
Recycling and/or safe disposal	63.29

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66th Annual Report 2025-26

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

	2025-26 (Current Financial Year)			2024-25 (Previous Financial Year)
	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	-	-	-	-	-	-

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

	Number	Reasons for recall
Voluntary recalls	-	-
Forced recalls	-	-

5. 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.

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

https://www.elecon.com/views/templates/admin-uploads/Investors/Policies/Data%20Privacy%20and%20Cyber%20Security%20Policy-2023.pdf

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; 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

7. Provide the following information relating to data breaches:

a. Number of instances of data breaches
b. Percentage of data breaches involving personally identifiable information of customers
c. Impact, if any, of the data breaches

Nil
Not Applicable
Not Applicable

Corporate Overview
Statutory Reports
Financial Statements

INDEPENDENT REASONABLE AND LIMITED ASSURANCE REPORT ON BUSINESS RESPONSIBILITY SUSTAINABILITY REPORT OF ELECON ENGINEERING COMPANY LIMITED

The Board of Directors

Elecon Engineering Company Limited

Gujarat, India.

Anand – Sojitra Road,

Vallabh Vidyanagar – 388 120,

We have undertaken to perform a Reasonable Assurance for Business Responsibility and Sustainability Report [hereinafter 'BRSR'] 'Core Key Performance Indicators (KPIs)' and Limited Assurance for 'Essential Indicators' for Elecon Engineering Company Limited vide Engagement Letter in respect of the agreed BRSR in accordance with the criteria stated below. This is included in BRSR of the company for the financial year ended March 31, 2026.

Criteria

The criteria used by the Company to prepare the Identified Sustainability Information is as per the guidelines issued by Securities and Exchange Board of India (SEBI) in accordance with the circulars:

SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023
SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023

and clarifications issued for the same.

This engagement was conducted by a multidisciplinary team including assurance practitioners, social, governance and environmental experts.

Identified Sustainability Information

The identified Sustainability Information for the financial year ended March 31, 2026 is summarised below in Appendix 1;

The areas for which Reasonable and Limited assurance have been undertaken are also detailed in Appendix 1 to this report.

Our Reasonable and Limited Assurance engagement was with respect to the year ended March 31, 2026 information only unless otherwise stated and we have not performed any procedures with

respect to earlier periods or any other elements included in the BRSR and therefore, do not express any conclusion thereon.

Management's Responsibility

The Company's management is responsible for selecting or establishing suitable criteria for preparing the Sustainability Information, considering applicable laws and regulations, if any, related to reporting on Sustainability Information, Identification of key aspects, engagement with stakeholders, content, preparation and presentation of the Identified Sustainability Information in accordance with the Criteria. This responsibility includes design, implementation and maintenance of internal control relevant to the preparation of the BRSR and the measurement of Identified Sustainability Information, which is free from material misstatement, whether due to fraud or error.

Inherent Limitations

The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, measures and measurement techniques and can affect comparability between entities.

Our Independence and Quality Control

We have maintained our independence and confirm that we have met the requirements of Code of Ethics issued by Institute of Chartered Accountants of India (ICAI) and have the required competencies and experience to conduct this assurance engagement; and

The firm applies Standard on Quality Control (SQC) 1, 'Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements' issued by the ICAI and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements.

Our Responsibility

Our responsibility is to express a Reasonable and Limited Assurance conclusion, as applicable and given in the Appendix 1 to this report on the Identified Sustainability Information based on the procedures we have performed and evidence we have obtained;

Elecon Engineering Company Limited

ELECON
GUARANTY FOR INTERNAL INFORMATION

We conducted our engagement in accordance with the Standard on Sustainability Assurance Engagements (SSAE) 3000, 'Assurance Engagements on Sustainability Information', issued by the ICAI. This standard requires that we plan and perform our engagement to obtain reasonable assurance about whether the Identified Sustainability Information are prepared, in all material respects, in accordance with the Reporting Criteria. A reasonable assurance engagement involves assessing the risks of material misstatement of the Identified Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances;

For the purpose of the limited assurance, this standard requires that we plan and perform our engagement to obtain limited assurance about whether the Identified Sustainability Information is free from material misstatement;

A limited assurance engagement involves assessing the suitability in the circumstances of the Company's use of the Criteria as the basis for the preparation of the Identified Sustainability Information, assessing the risks of material misstatement of the Identified Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the Identified Sustainability Information;

A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks; and

The procedures we performed were based on our professional judgment and included inquiries, observation of processes performed, inspection of documents, evaluating the appropriateness of quantification methods and reporting policies, analytical procedures and agreeing or reconciling with underlying records.

Basis of Opinion

Given the circumstances of the engagement, in performing the procedures listed above, we:

Obtained an understanding of the identified sustainability indicators and related disclosures;
Obtained an understanding of the assessment criteria and their suitability for the evaluation and / or measurements of the identified sustainability indicators;
Made enquiries of the Company's Management, including those responsible for Sustainability, Environment, Social, Governance (ESG), Corporate Social Responsibility (CSR), etc., and those with responsibility for managing the Company's BRSR;
Obtained an understanding of, and performed an evaluation of, the design of the key systems, processes and controls for managing, recording and reporting on the Identified Sustainability Indicators including at the sites and corporate office visited;
Based on that understanding, the risks that the selected information may be materially misstated and determining the nature, timing and extent of further procedures;
Checked the consolidation for various domestic branch offices, 2 plant sites and corporate office under the reporting boundary (as mentioned in the BRSR) for ensuring the completeness of data being reported except data pertaining to energy, waste, water and emissions domestic branch offices are not included for the purpose of BRSR Core KPIs;
Based on above understanding and the risks that the identified sustainability indicators may be materially misstated, determined the nature, timing and extent of further procedures;
Performed substantive testing on a sample basis of the Identified Sustainability Indicators at corporate head office, and 2 plant sites located at Vallabh Vidyanagar, Gujarat to verify that data had been appropriately measured with underlying documents recorded, collated and reported;
Assessed records and performed testing including recalculation of sample data;
Reviewed records and performed testing including recalculation of sample data;
Assessed the level of adherence to the 'Guidance note for BRSR format' issued by SEBI followed by the Company in preparing the BRSR;
Assessed the BRSR for detecting, on a test basis, any major anomalies between the information reported in the BRSR on performance with respect to agreed indicators and relevant source data/information; and
Obtained representations from Company's Management.

Exclusions:

Our assurance scope excludes the following and therefore we do not express a conclusion on the same:

66th Annual Report 2025-26

Corporate Overview
Statutory Reports
Financial Statements

Operations of the Company other than those mentioned in the Scope of Assurance as per the above referred Engagement Letter;
Aspects of the BRSR and the data/information (qualitative or quantitative) other than the Identified Sustainability Information;
Data and information outside the defined reporting period i.e., Financial Year 2025-26; and
The statements that describe expression of opinion, belief, aspiration, expectation, aim, or future intentions provided by the Company.

Opinion on Reasonable Assurance

Based on the procedures we have performed and the evidence we have obtained, the Identified Sustainability Information for the financial year ended March 31, 2026 (as stated under 'Identified Sustainability Information') is prepared in all material respects, in accordance with the criteria.

Limited Assurance Conclusion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Company's Identified Sustainability Information included in the BRSR for year ended March 31, 2026 are not prepared, in all material respects, in accordance with the Criteria.

Restriction on use

Our Reasonable Assurance Report and Limited Assurance conclusion have been prepared and addressed to the Board of Directors of Elecon Engineering Company Limited at the request of the company solely, to assist company in reporting on Company's sustainability performance and activities. Accordingly, we accept no liability to anyone other than the company. Our Deliverables should not be used for any other purpose or by any person other than the addresses of our Deliverables. The firm neither accepts nor assumes any duty of care or liability for any other purpose or to any other party to whom our Deliverables are shown or into whose hands it may come without our prior consent in writing.

For C N K & Associates LLP

Chartered Accountants

Firm Registration Number: 101961 W/W – 100036

Himanshu Kishnadwala

Partner

Membership Number: 037391

Date: April 15, 2026

Place: Vallabh Vidyanagar

UDIN: 26037391YFHYPI4600

Elecon Engineering Company Limited
97

ELECON

GEARING THE FUTURE

APPENDIX 1:

Sr. No.	Indicator Number	Name of Indicator	Type of Assurance
1	Section C - Principle 6 -Q7	Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the given format	Reasonable
2	Section C - Principle 6 -Q3	Provide details of the following disclosures related to water withdrawal, in the given format	Reasonable
3	Section C - Principle 6 -Q4	Provide the following details related to water discharged	Reasonable
4	Section C - Principle 6 -Q1	Details of total energy consumption (in Joules or multiples) and energy intensity, in the given format	Reasonable
5	Section C - Principle 6 -Q9	Provide details related to waste management by the entity, in the given format	Reasonable
6	Section C - Principle 3 - Q1c	Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the given format	Reasonable
7	Section C - Principle 3 - Q11	Details of safety related incidents, in the given format	Reasonable
8	Section C - Principle 5 - Q3b	Gross wages paid to females as % of total wages paid by the entity, in the given format	Reasonable
9	Section C - Principle 5 - Q7	Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the given format	Reasonable
10	Section C - Principle 8 -Q4	Percentage of input material (inputs to total inputs by value) sourced from suppliers	Reasonable
11	Section C - Principle 8 - Q5	Job creation in smaller towns - Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent / on contract basis) in the given locations, as % of total wage cost.	Reasonable
12	Section C - Principle 9 - Q7	Provide the following information relating to data breaches: a. Number Of instances of data breaches b. Percentage of data breaches involving personally identifiable information of customers c. Impact, if any, of the data breaches	Reasonable
13	Section C - Principle 1 - Q8	Number of days of accounts payables (Accounts Payable * 365) / cost of goods/services procured) in the given format.	Reasonable
14	Section C - Principle 1 - Q9	Open-ness of business Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along with loans and advances & investments, with related parties, in the given format	Reasonable
15	BRSR Report	1. Section A: General Disclosure - 24 indicators
2. Section B: Management & Process disclosures - 12 indicators
3. Section C: Principle wise performance disclosures - 9 Principles (Essential indicators except the Core KPI's as covered in Sr. No. 1 - 14 above)	Limited

66^{\text{th}} Annual Report 2025-26

AI assistant

Elecon Engineering Co.Ltd. — Environmental & Social Information 2026

63235_rns_2026-06-02_db670576-1308-4e7c-92c2-7182b5fcc57e.pdf

ANNEXURE – E TO BOARD’S REPORT

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

II. Products/services

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

VI. CSR Details

VII. Transparency and Disclosures Compliances

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

Disclosure Questions

Policy and management processes

Performance details:

Governance, leadership and oversight

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

Essential Indicators

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

Essential Indicators

PRINCIPLE 3: BUSINESSES SHOULD RESPECT AND PROMOTE THE WELL-BEING OF ALL EMPLOYEES, INCLUDING THOSE IN THEIR VALUE CHAINS

Essential Indicators

10 Health and safety management system:

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

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

14. Assessments for the year:

15. 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.

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

Essential Indicators

Essential Indicators

The Remuneration is taken only till Jan 2026, as ceased to be KMP w.e.f. January 31, 2026.

Essential Indicators

Essential Indicators

Essential Indicators

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

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

5. 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.

7. Provide the following information relating to data breaches:

INDEPENDENT REASONABLE AND LIMITED ASSURANCE REPORT ON BUSINESS RESPONSIBILITY SUSTAINABILITY REPORT OF ELECON ENGINEERING COMPANY LIMITED

Criteria

Identified Sustainability Information

Management's Responsibility

Inherent Limitations

Our Independence and Quality Control

Our Responsibility

Basis of Opinion

Exclusions:

Opinion on Reasonable Assurance

Limited Assurance Conclusion

Restriction on use

For C N K & Associates LLP

Chartered Accountants

Himanshu Kishnadwala

More from Elecon Engineering Co.Ltd.

Elecon Engineering Co.Ltd. Environmental & Social Information 2026