Climate Change Data

Environmental Metrics

Social Achievements

• COVID-19 Vaccination Drives at Maraimala Nagar & Pondicherry
• HR Task Force setup to support employees and their families during medical emergencies
• Work from Home Assistance
• Medical Counsellors - COVID-19 medical consultation through visiting doctors
• Employee Office Hours – Regular sessions were conducted by your Company’s doctors and by external medical doctors
• Caregiver Leave – 7 days of leave was given to employees for taking care of their immediate family who were impacted by COVID-19

Climate Goals & Targets

Environmental Challenges

• Unprecedented commodity inflation resulted in 15% to 20% cost increase, substantially eroding margin, and driving loss
• GE lost business - significant impact on APIL, OEM Business dependent on GE in Volume Drop
• Key Contracts in S&S PSE (KPTL Tunisia, PGCB) Execution delayed due to Customer Drawing Approval delay
• Delay in MAPS execution impacted MV Switchgear volume – leading to drop in sale
• Post covid contract management became hard and execution of 0.1% GST Merchant export led to blockage of capital with GST
• Unfair Labor practices in Pondicherry led to commencement of Strike in the last quarter and reduced capacity
• UK volume dropped by 15% in Rupee term
• Disturbance due to Covid wave 2 & supply chain disruption has reduced capacity utilization
• Supply lead time for IED’s in particular has substantially increased
• Margins were under pressure

Mitigation Strategies

• Cut fixed costs by 30% in Chennai business
• Strengthened the bidding process to take care of uncertainties of cost and cash
• Weeded out non-profitable business lines
• Similar optimization in UK business
• Focus on higher margin business and customers who seek more value-added services
• Move of operations from Pondicherry to Maraimalai Nagar
• S&S 4.0 initiative to improve digitization, better risk management
• Complete Pondicherry transfer to Maraimalai Nagar, Implement DS Integration Project- simplify, reduce Breakeven point
• Focus on Cash Velocity and not on Marginal one
• Focus on Attractive Segment/ Geography
• Secure new Agreement with GE
• Companywide focus on working capital efficiency improvement
• Improve Channel Business for R3+DS
• 3-Tiered Product Approach for DS
• Launch operational excellence initiative to standardize new setup for manufacturing
• APIL Business Rightsizing
• Appoint Full time Cost Controller/Contract manager, cost out program leader in Operations
• Improve SAP analytics and use of reports for corrective action & continuous improvement
• Renewed focus on portable relays & digital control system

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Launched formal management system implementation on environment, health safety. It will bring significant focus on sustainable development and energy conservation.

Social Achievements

• In order to attract better talent and bring better work life balance, Sales team & Acrastyle Engineers office is planned to be moved to a city office in Guindy.
• Structured safety programs were organized emphasizing the safety of people during the year under review.

Governance Achievements

• Governance and compliances have substantially improved.

Climate Goals & Targets

Environmental Challenges

• Post COVID international supply chains for electronic products have been witnessing disturbance.
• Sheet metal commodity prices are stabilizing.
• Delay in Project implementation due to civil works. Also, decision making in African, Bangladesh and Domestic market slowed down.

Mitigation Strategies

• Our continued focus on creative sourcing, advance purchase planning and close working with key suppliers is helping in managing Global Electronic part supply Clan Disturbance.
• We took a strategic decision to sell our Pondicherry facility and move all Disconnector operations to Chennai. This has resulted in better management oversight, lower costs and more predictability.
• Focus on better inventory management, tight control of T&C and competitive sourcing will continue drive efficient working capital management.

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

ESG Focus Areas

• Employee well-being
• Energy conservation
• Sustainable development
• Technology and Innovation
• Statutory compliance
• EHS (Environment, Health, Safety)

Environmental Achievements

• Launched formal management system implementation on environment, health safety. It will bring significant focus on sustainable development and energy conservation.
• Aluminium being an infinitely recyclable metal, the number of its usage applications, and the demand for it is strong.

Social Achievements

• Focusing on growing the business into new areas and geographies, and on selected expansion of the portfolio.
• Onboarded a few key resources like a new CFO, a group CHRO and is strengthening its employees through competency mapping and structured learning programs.
• Streamlining operations to improve efficiency and profitability, improving external communications, augmentation of facilities, strengthening internal controls, focusing on excellence, and rolling out a performance-based variable pay scheme are some of the initiatives undertaken so far.

Governance Achievements

• Successful restructuring of the company, setting right the capital structure, reducing debt, and cleaning up the holding pattern of the operating companies.
• Added a new line of business through the acquisition of Hamilton Research and Technology.
• Added a new and dynamic management team.

Climate Goals & Targets

Environmental Challenges

• Increasing global stress points such as Inflation, Ukraine/Russia conflict, the situation in the Middle East and increasing tension with China.
• Rising cost of input material

Mitigation Strategies

• Reduced borrowing from INR 52 Cr to INR 13 Cr, and its net worth has turned from negative to a positive INR 92 Cr.
• Continuously optimizing manufacturing processes to take care of rising cost of input material.
• Reduced cycle time by way of getting PCBs soldered by automated machines.
• Adoption of lean manufacturing principles has significantly improved operational efficiency.

Supply Chain Management

Climate-Related Risks & Opportunities