Climate Change Data

Environmental Metrics

Social Achievements

• Donated a new TATA Winger vehicle to Lions Club, SPIC Nagar, Tuticorin to enable them to carry out mobile health service in rural areas.

Governance Achievements

• Established a vigil mechanism for its directors and employees to report grievances or concerns about unethical behavior, fraud, or violation of the Company’s code of conduct.
• Constituted an Internal Complaints Committee to prevent and prohibit sexual harassment at the workplace.

Climate Goals & Targets

Environmental Challenges

• Economic slowdown and general recessionary trend in all business sectors impacting profitability.
• Lower performance of the discontinued commercial vehicle division due to increased competition, lower demand, and high operational expenditure.
• Tough competition resulting in reduction of selling price in drums manufacturing division.

Mitigation Strategies

• Discontinued commercial vehicle operations, surrendered trade license, and decided not to renew the dealership agreement with Tata Motors Ltd.
• Constantly exploring possibilities of developing core business areas and initiating new action plans.
• Expanding business operations in Tamil Nadu by catering to a wider customer base and increasing product portfolios (new dealership with DANUBE).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a vigil mechanism for reporting grievances and unethical behavior; constituted an Internal Complaints Committee to prevent sexual harassment.

Climate Goals & Targets

Environmental Challenges

• Government policies like GST and RERA; demonetization; economic instability; volatility in raw material prices; intense competition from the unorganized sector; cyclical trends in the business.

Mitigation Strategies

• Continuous innovation; effective business strategies; addition of new customers; expansion to new markets; increased number of supply points; centralized sourcing of raw materials; diversification of business portfolio; cost optimization; operational excellence initiatives; risk assessment mechanism; strengthening business practices and policies.

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: ISO 9001-2015 (Building Materials, Power & Control Systems, Industrial Packaging)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Social Achievements

• The Company, through a Not-For-Profit entity formed under Section 8 of the Companies Act, 2013, is carrying out necessary CSR projects at various places. A report on CSR activities forming part of this report is attached herewith as separate Annexure II.
• The Company is carrying out necessary CSR projects at various places. Construction of 50 public toilets at Puducherry.

Governance Achievements

• The Company has established a vigil mechanism for its directors and employees to report their grievances or genuine concerns about unethical behaviour, actual or suspected fraud or violation of the Company’s code of conduct.
• The Company has constituted an Internal Complaints Committee to prevent and prohibit any form of sexual harassment at workplace and provide redressal for woman employees as required under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Climate Goals & Targets

Environmental Challenges

• The financial year 2018-19 being one of the toughest years in the business with slump in economy resulted with many sectors reeling under negative growth. The business environment is impacted due to sluggish growth, liquidity crisis and very slow recovery from GST.
• Competition from the OEM suppliers and lower priority from the customers for Capex are the major challenges for this business.
• This business faced major challenge due to volatile steel prices during the current fiscal coupled with intense competition from unorganised players.
• No operational income was posed during the year 2018-19 due to lack of new orders for boat building operations.

Mitigation Strategies

• The business environment is impacted due to sluggish growth, liquidity crisis and very slow recovery from GST. However the Building material business through its uniqueness in diversity has adapted itself to changes with comfort and poise and the setback due to the risks posed by the economy have been mitigated to a great extent.
• The management chalked out plans for expansion of product portfolios and venturing into new markets. These measures coupled with command over the current market would enhance the turnover substantially.
• This division’s growth, despite the challenges can be attributed to the qualitative measures initiated by producing superior quality drums at affordable prices, improved logistics management and higher productivity with lower manpower.
• This division has been discussing with many customers for orders. During the year, Sicagen has been shortlisted as one of the manufacturers of superior quality boats as per the proposed plan of Ministry of Fisheries to build boats for the fishermen for deep sea fishing. Sicagen is expecting to secure good orders in the ensuing year from the Fisheries department.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• During the year, the management of Danish Steel Cluster Private Ltd (Danish Steel) announced VRS scheme and settled 85 workmen under this scheme.

Governance Achievements

• The Company maintains the requisite number of Independent Directors as required under Section 149(4) of the Companies Act, 2013 and Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

Climate Goals & Targets

Environmental Challenges

• The year 2020-21 was very challenging because of Covid-19 pandemic that had impacted the global economy and industries at large. It has caused a spiral effect on all industries.
• In the building materials segment, companies faced numerous challenges like disruption in the manufacturing process, manpower shortage due to reverse migration, growing gap between the demand and supply chain and logistical constraints.
• Due to lack of orders from the customers, Danish Steel is in the process of evaluating the potential future business prospects and also looking at various options to shift the business operations to a viable place.

Mitigation Strategies

• The Company ensured essential manning, stabilised operations as per standard operating procedures (SOP) and subsequently ramped up capacity utilisation.
• The Company has taken several initiatives to improve market coverage, business development and also to strengthen the core values of excellence, customer focus, integrity, commitment and team work.
• The Company is constantly exploring the possibilities of developing its core area of businesses for which new action plans are also being initiated by the Management.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• a new anticaking agent product

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on operations and results, including customer inability to continue businesses, resource deployment restrictions, postponed discretionary spending, and uncertainties associated with the pandemic's nature and duration.

Mitigation Strategies

• Continuous monitoring of developments across business verticals, adequate provision for expected credit losses, and robust risk management system to monitor and avoid risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Indian Accounting Standards (Ind AS)

Third-party Assurance: SRSV & Associates Chartered Accountants

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Lack of orders in the Engineering division resulting in no revenue from operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities