Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Regular training programs are conducted to create awareness about the importance of safety at work. Medical Camps are organized periodically for welfare of the members. Additionally, regular medical facilities are also provided to them.

Governance Achievements

• The Company has adopted a Vigil Mechanism Policy
• The Company has in place a Prevention of Sexual Harassment policy

Climate Goals & Targets

Environmental Challenges

• Continuous mismatch between input costs and lower yarn prices
• Lack of consistency and credibility in cotton price estimates
• High prices of raw material not followed by finished goods in the same proportion
• Excess supply coupled with low demand and unremunerative prices of yarn
• Regional imbalance in taxation structure & Incentives
• Demonetization causing disturbances in market sentiments
• Relative slowdown in the economy
• Ever increasing input cost i.e. Power, finance and logistics.
• Shortage of stable and skilled man-power.
• Striking a balance between the quality and price of products.
• Changing consumer behavior (e.g. fast fashion) forcing terms and conditions to become more flexible
• High dependency of the industry on cotton. Which is prone to fluctuations and speculative tendencies.

Mitigation Strategies

• Development of innovative & value added products
• Cost optimization
• Broadening of customer base
• Upgradation of 40800 spindles capacity at Nalagarh retrofitting elite compact attachment and stabilized PCM/CPM (Melange) on 25,000 spindles at Ludhiana
• Modernization / upgradation for some of our capacities
• Successfully serviced more than 50 % of total Corporate debt under CDR
• Continuous development of new products, up- gradation of technology, cost controls and efficient/ judicious resource utilization

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Difficult operating environment due to liquidity crunch resulting in sub-optimum utilization of manufacturing facilities.
• Slowdown in retail markets and pressure on margins due to liquidity crunch, less demand, eroding market share, and limited ability to pass on increased raw material prices.
• Company's bank accounts classified as NPA, resulting in no interest being charged by lenders post-NPA classification.

Mitigation Strategies

• Restructuring customer and product portfolios to focus more on direct exports to international brands.
• Implementing a risk management system with a Risk Management Committee to monitor and mitigate risks.
• Hedging foreign currency against confirmed contracts and booking finished goods orders in advance based on raw material inventory.
• Developing a plan to address cash flow mismatch.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Difficult operating environment due to external macroeconomic factors and liquidity crunch resulting in sub-optimum utilization of manufacturing facilities.
• Bank accounts classified as NPA by a consortium of banks.
• Lenders issued notices under the SARFESI Act, 2002.
• Applications filed under the Insolvency and Bankruptcy Code, 2016.
• COVID-19 pandemic causing operational suspension.

Mitigation Strategies

• Meetings with banks to negotiate a one-time settlement (OTS).
• 80% of lenders agreeable to OTS.
• State Bank of India assigned debts to Phoenix ARC Private Limited.
• Resumed partial manufacturing operations after lockdown.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• High volatility in the textile industry resulting in adverse effects on revenue.
• Liquidity position under strain impacting operations.
• Majority of spindles more than 15-20 years old leading to inconsistent product quality.
• Older technology leading to higher operating costs.
• Lack of critical capital expenditure for machinery modernization.

Mitigation Strategies

• Successful completion of resolution of bank debts through one-time settlement and assignment to an Asset Reconstruction Company (ARC).
• Exploring low-cost debt avenues to meet Capex and working capital requirements.
• Consistent efforts to increase operational efficiency of plants.
• Implementing strategies to improve financial performance.

Supply Chain Management

Climate-Related Risks & Opportunities