Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced per unit energy cost through windmills and energy-friendly apparatus
• Significant cost savings and reduction in carbon emission by enhancing additional power from Electricity Board as an alternate for Diesel Generator Set
• Developed product filled with natural ester coolants which is fire safe and environment friendly

Social Achievements

• Established a process to identify and recognize performing employees through “Employee of the Month” scheme
• No cases reported under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Governance Achievements

• Complied with the requirements on Corporate Governance as they stood during FY 2019-20
• All Board members and senior management personnel have affirmed compliance with the applicable Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Price pressure impacting the entire industry
• Raw material price volatility (Copper and CRGO)
• Supply of CRGO (needs to be imported)
• Unorganized players in the market leading to price sensitivity
• Overcapacity in the industry
• Slowdown in the manufacturing segment
• Financial health of State Discoms
• Energy park tenders won with very low energy unit rate
• Delay in payment to IPPs by EBs
• Renegotiation of wind and solar power purchase contracts by state utilities
• Downward trend in tenders/ordering activity by utilities due to lack of funds
• High credit period payment terms from utilities impacting cash flow

Mitigation Strategies

• Improved sourcing strategies and cost optimization to improve margin
• Energy saving measures (windmills, energy-friendly apparatus)
• Enhancement of additional power from Electricity Board as an alternate for Diesel Generator Set
• Development of fire safe and environment friendly products
• Employee of the Month scheme to improve employee engagement
• Internal Financial Control (IFC) process to provide reasonable assurance on reliability of financial information, compliances with laws and regulations in force and realization and optimization of operations
• Independent Internal Auditor for periodically carrying out audit of the transactions

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Indian Accounting Standards (Ind AS)

Third-party Assurance: B S R & Co. LLP, Chartered Accountants

Sustainable Products & Innovation

• Product filled with natural ester coolants

Environmental Metrics

ESG Focus Areas

• Environmental Health and Safety (EHS)
• Corporate Social Responsibility (CSR)

Environmental Achievements

• Received Environmental Health and Safety (EHS) Excellence Award - 3 Star Rating from CII
• Utilizes natural resources in a sustainable way
• Has 2 windmills in Tirunelveli, Tamil Nadu, reducing per unit energy cost.

Social Achievements

• Conducted various training and skill development programs for upskilling workforce during COVID-19 lockdown.
• Established an "Employee of the Month" scheme to recognize performing employees.
• Maintained business continuity during COVID-19 without compromising employee safety.
• Created awareness on COVID-19 guidelines and facilitated workforce vaccination.

Governance Achievements

• Complied with the requirements on Corporate Governance as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• Established a Vigil Mechanism (Ombuds & Open Reporting Procedure) for reporting concerns.
• Implemented an Anti-Sexual Harassment Policy in line with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly affected business operations during the first two months of Q1 2020-21.
• Steep rise in commodity prices (Copper, Steel & Oil) due to the pandemic.
• Overcapacity in the transformer industry leading to aggressive pricing and impacting margins.
• Slowdown in the manufacturing segment reducing demand for transformers.
• Financial health of State Discoms affecting payment delays.
• Delay in payment to IPPs by EBs impacting cash cycle of OEMs.
• Renegotiation of wind and solar power purchase contracts by state utilities.
• Low price (L1) bidding by utilities leading to price wars.
• High credit period from utilities impacting cash flow.

Mitigation Strategies

• Utilized the lockdown period for upskilling the workforce.
• Maintained business continuity by amplifying customer engagement through technology and digital solutions.
• Improved sourcing strategies and cost optimization to improve revenue and optimize margins.
• Focus on improving productivity and controlling non-operational costs.
• Cautious approach in scaling up manufacturing operations and timely delivery to ensure adequate cash flow.
• Continuous monitoring of material changes to future economic conditions.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Environmental Health and Safety (EHS) Excellence Award - 3 Star Rating from CII

Environmental Metrics

ESG Focus Areas

• Environmental Health and Safety (EHS)

Environmental Achievements

• Received Bronze Award for Environmental Health and Safety (EHS) Excellence (2021) from CII
• Reduced per unit energy cost through the use of two windmills

Social Achievements

• Implemented an Anti-Sexual Harassment Policy in line with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. No cases reported.
• Developed fire-safe and environment-friendly products filled with natural ester coolants

Governance Achievements

• Complied with applicable Secretarial Standards issued by the Institute of the Company Secretaries of India.
• Established a Vigil Mechanism (Ombuds & Open Reporting Procedure)

Climate Goals & Targets

Environmental Challenges

• Raw material price volatility (Copper and CRGO)
• Competition from unorganized players and MNCs
• Overcapacity in the industry
• Slowdown in the manufacturing segment
• Financial health of State Discoms
• Delays in payments from clients
• Renegotiation of wind and solar power purchase contracts by state utilities
• Low price bidding in utility orders
• High working capital intensity

Mitigation Strategies

• Improved sourcing strategies and cost optimization
• Focus on productivity and cost control
• Balanced approach to scaling up manufacturing and timely delivery
• Dynamic management of business to deliver strong bottom-line performance

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Certifications: ISO/IEC 17025:2017

Third-party Assurance: NABL

Sustainable Products & Innovation

• Fire-safe and environment-friendly products filled with natural ester coolants

Awards & Recognition

• Bronze Award for Environmental Health and Safety (EHS) Excellence (2021)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduction of water usage by 17% by using STP water for flushing in toilets and gardening
• Reduction of CO2 emissions from diesel generators by 24% with installation of diesel particulate filter
• Reduction of energy consumption per MVA by 30% by effective utilization of high energy consuming equipment like Vapour Phase Drying (VPD) through optimization of supporting accessories i.e. clamping plates, loading trolley etc.
• Improvement of power factor by optimizing capacitor bank capacity in Test Lab resulting in 25% Increase in power efficiency
• Implementation of Centralized Air Compressor setup for improved energy efficiency

Social Achievements

• Implemented several measures to ensure safe workplace environment such as employing Laser Digital Distance Finder to prevent risk of fall hazard during manual measurements in elevated workspaces, practice of using O2 & RH analyzer while working in confined spaces (tanks and pits) to monitor safe oxygen levels, installation of metallic scrap bins instead of wooden bins, etc.
• Initiated the process for implementing new ERP tool in order to cope with the business growth
• Establish a Tool Management System at Single-point Tool Room to eliminate time delay in searching for tools and to prevent loss of tools, enhancing ergonomics
• Digitalization of shopfloor data monitoring and computing process to workout cycle time, plant productivity etc.
• Digital exchange of quality documents with vendors through a web-portal, eliminating paper consumption.
• Elimination of paper transactions by installation of digital kiosk for operators to manage their attendance and leave.

Governance Achievements

• Annual evaluation of its own performance, its Committees and individual Directors
• Independent Directors reviewed the performance of the Board, its Chairman and Non-Executive Directors

Climate Goals & Targets

Environmental Challenges

• Raw material cost and price pressure impacting the entire industry
• Temporary suspension of production operations due to worker disturbances regarding Variable Dearness Allowance (VDA)
• Overcapacity in the industry leading to aggressive pricing
• Financial health of State Discoms
• Delay in payment to Independent Power Producers (IPPs) by Electricity Boards (EBs)
• Low price (L1) bidding in utility contracts leading to price wars
• High credit period payment terms from utilities impacting cash flow
• Increase in working capital borrowings and high working capital intensity
• Raw material price volatility of Copper and CRGO (Electrical grade Steel)
• Less supply of CRGO requiring imports and high service charges

Mitigation Strategies

• Improved sourcing strategies and cost optimization to improve and sustain margins
• Resorted to Conciliation before Deputy Commissioner of Labour (DCL) to resolve VDA dispute
• Synergies with parent company SSEL for favorable business opportunities

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Third-party Assurance: ASA & Associates LLP