Techno Electric & Engineering : Business Responsibility & Sustainability Report

Techno Electric & Engineering Company Limited

Business Responsibility & Sustainability Report

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1. Corporate Identity Number (CIN) of the Company: L40108UP2005PLC094368
2. Name of the Company: Techno Electric & Engineering Company Limited
3. Year of Incorporation: 2005
4. Registered address: C-218, Ground Floor (GR-2), Sector 63, Noida - 201307, Uttar Pradesh
5. Corporate Office Address: 1B, Park Plaza, South Block, 71, Park Street, Kolkata - 700016
6. Website: http://www.techno.co.in
7. E-mailaddress: [e-mail]
8. Telephone No.: [phone]/3100
9. Financial Year reported: 2022-2023
10. Name of the Stock Exchange(s) where securities are listed: BSE Limited and National Stock Exchange of India Limited
11. Paid Up Capital: ` 21,52,38,038
12. Name and Contact details of the person for BRSR: Name: Niranjan Brahma, Company secretary Email: [e-mail]
    Phone No. [phone]/3100
13. Reporting Boundary: Standalone Basis
14. Sector(s) that the Company is engaged in (industrial activity code wise):

Description		NIC		% age of Turnover
EPC (Construction)	45204	98.87
Energy (Power)		40108		1.13

15. Three key products/services that the Company manufactures/ provides (as in balance sheet):

Corporate		Performance		Beyond			Statutory		Financial
Overview		Summary		Business			Reports		Statements

1. Total number of locations where business activity is undertaken by the Company:
2. 1. Number of International Locations - 2
   2. Number of National Locations - 22
3. Markets served by the Company - Local/State/National/International - National and International
4. Details of Employees as at the end of Financial Year 2023:

Particulars		Total		Male		%age		Female		%age
Permanent	360		340	94.44	20	5.56
Other than Permanent	27		27	100	0	0
Differently abled:
-	Permanent	1		1	100	0	0
-	Other than Permanent		0		0		0		0		0

19. Participation/Representation of Women:

Particulars		Total		No. and %age
Board of Directors	8	2	25
Key Management Personnel		4		-	-

20. Turnover Rate of Employees:

FY 2022-23 (%)			FY 2021-22 (%)			FY 2020-21 (%)
Male	Female	Total		Male	Female	Total		Male	Female	Total
16.92	10.81	16.62		15.92	19.35	16.05		15.89	0	15.29

21. Holding, Subsidiary, Associate and Joint Venture Companies:

Sl.					%age of Shares		Does the entity mentioned in
Name		Category		held by the		column (A) participate in the
No.
				reporting Entity		BRS initiative of reporting entity
1.	Techno Infra Developers Pvt. Ltd.		Subsidiary	100		No
2.	Techno Digital Infra Pvt. Ltd.		Subsidiary	100		No
3.	Techno Green Energy Pvt. Ltd.		Subsidiary	100		No
4.	Techno Wind Power Pvt. Ltd.		Subsidiary	100		No
5.	Rajgarh Agro Products Ltd.		Subsidiary	96		No
6.	Techno Data Center Ltd.		Subsidiary	100		No

Power Generation System

Transmission & Distribution

Industrial

Mechanical

Complete solution provider for captive power plants, balance of plants and utilities for power projects.

Construction of air insulated, and gas insulated substations, installation of overhead lines, Advanced Smart Metering Solution etc.

Plant electrical and illumination, oil handling plants, fire protection system, air conditioning and ventilation system.

Fuel Gas Desulfurization (FGD) system

7. Techno Ami Solutions Pvt. Ltd.

Subsidiary

100

No

22. Corporate Social Responsibility:

1. Whether CSR is applicable as per Section 135 of the Companies Act, 2013 - YES
2. Turnover - ` 96,662.09 lakhs
3. Net-worth- ` 195,799.94 lakhs
4. Profit before tax - ` 17,485.38 lakhs
5. Profit after Tax - ` 21,837.48 lakhs

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Total Spending on Corporate Social Responsibility (CSR) as percentage of profit before tax (%):

The Company has spent `385.84 lakhs, which is 1.46% of the average net profit before tax of the last three years preceding the year ended 31st March 2023 and transferred ` 141.53 lakhs relating to ongoing projects to Unspent CSR Account which is 0.54% of the average net profit before tax of the last three years preceding the year ended 31st March 2023.

List of activities in which expenditure as above has been incurred:-

Please refer to Board's Report for CSR Activities.

23. Transparency and Disclosures Compliances

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

Corporate		Performance		Beyond			Statutory		Financial
Overview		Summary		Business			Reports		Statements

24. Overview of the entity's material responsible business conduct issues:

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along with its financial implications, as per the following format:

									Financial
									implications
			Indicate						of the risk or
S.	Material issue		whether risk		Rationale for identifying the risk /		In case of risk, approach to		opportunity
No.	identified		or opportunity		opportunity		adapt or mitigate		(Indicate
			(R/O)						positive or
									negative
									implications)
1	Health &		Risk		Being in contracting business		Plan for health & safety		Negative
	Safety				in power sector, health &		management Plan,
					safety may have direct impact		Risk Management and

Stakeholder		Grievance Redressal
	Mechanism in Place
group from
	(Yes/No) (If Yes, then
whom
	provide web-link for
complaint is
	grievance redress
received
	policy)
Investors		Yes, a mechanism
(other than		is in place wherein
shareholders)		certain Company
		representatives
		and advisors have
		been identified
		to understand
		and address their
		concerns, if any
Shareholders		Yes, Shareholder
		can register their
		grievances at https://
		scores.gov.in/scores/
		welcome. html and
		also web links of
		BSE (http://tiny.cc/
		m1l2vz) and NSE
		(http://tiny.cc/s1l2vz)
		for Arbitration
Employees		Yes. https://techno.
		honohr.com/
Customers		Not Applicable
Others		Not Applicable

	FY 2022-23
	Number of
Number of	complaints
complaints	pending	Remarks
filed during	resolution
the year	at close of
	the year
Nil	0	Nil

Nil

0

Nil

Nil	0	Nil
Nil	0	Nil
Nil	0	Nil

	FY 2021-22
	Number of
Number of	complaints
complaints	pending	Remarks
filed during	resolution
the year	at close of
	the year
0	0	Nil

0

0

Nil

0	0	Nil
0	0	Nil
0	0	Nil

					on people and community		Mitigation mechanism
					at project sites and cause		etc.
					disruption in operations.
2	Business		Risk		May have great impact on the		To ensure Ethical		Negative
	Ethics				reputation and goodwill and		Conduct through the
					trust of stakeholders		Code of Conduct and
							Monitoring Mechanism.
3	Employee		Opportunity		For overall growth of the		It's an opportunity to		Positive
	Development				organization, Improvement in		organize learning and
					employee competence, skills,		development programs
					knowledge and confidence is		for employees at
					the key.		different levels.
4	Regulatory		Risk		Non-compliance is a major		Compliance		Negative
	Issues and				cause of concern for the		management and
	Compliance				organization that may have		monitoring mechanism
					adverse impact on the brand		with timely alert system.
					value which has consequential
					impact on customer trust.
5	Energy		Opportunity		Greener and cleaner		Resourcing energy from		Positive
	Efficiency				environment by minimizing		renewable sources and
					the greenhouse gas (GHG)		its efficient use with
					emissions, efficient use of		regular energy saving
					resources and cost saving steps.		assessment.
6	Water		Opportunity		Improving availability of		Efficient water		Positive
	Stewardship				clean water by maintaining		consumptions, waste
					sustainable water balance		water treatment making
					and becoming water neutral/		it re-usable, rain water
					positive		harvesting projects.
7	Reducing		Opportunity		Improving the climate change		Focus on equipment		Positive
	Carbon				adverse impacts by improving		and processes that
	Footprint				energy efficiency.		emits zero carbon/
							minimum carbon.

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Techno Electric & Engineering Company Limited

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.

The National Guidelines on Responsible Business Conduct (NGRBC) released by the Ministry of Corporate Affairs has updated and adopted nine areas of Business Responsibility. These are briefly as under:

P1 Businesses should conduct and govern themselves with integrity and in a manner that is ethical, transparent and accountable

P2 Businesses should provide goods and services in a manner that is sustainable and safe

P3 Businesses should respect and promote the well-being of all employees, including those in their value chains

P4 Businesses should respect the interests of and be responsive to all its stakeholders

P5 Businesses should respect and promote human rights

P6 Businesses should respect and make efforts to protect and restore the environment

P7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

P8 Businesses should promote inclusive growth and equitable development

P9 Businesses should engage with and provide value to their consumers in a responsible manner

Disclosure Questions		P1	P2	P3	P4	P5	P6	P7	P8	P9
Policy and Management processes
1 (a) Whether your entity's policy/		Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
policies cover each principle and
its core elements of the NGRBCs.
(Yes/No)
(b) Has the policy been approved by		Yes	No	Yes	Yes	Yes	No	Yes	Yes	No
the Board? (Yes/No)

Corporate		Performance		Beyond			Statutory		Financial
Overview		Summary		Business			Reports		Statements

Governance, leadership and oversight

7.	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's business has no direct impact on environment, but has social and governance
	responsibility and is committed to integrating environmental, social and governance (ESG)
	principles into its businesses to improve the quality of life of the people it is associated with. It
	adheres to the principles of enhancing health, safety and environmental impacts of services.
	The environmental impacts cover Climate, Energy and Water Resources, Waste Management
	and Nature & Biodiversity. Even though the Company has very limited carbon emission, still
	it is committed to reduce its carbon emission (scope 1 & 2) as per the Science Based Target
	Initiatives ('SBTi') guidelines. It provides employees and business associates with working
	conditions that are clean, safe, healthy and fair.
	To deliver these commitments, the Company has separate CSR Policy, Human Rights Policy etc.
	and also has governance practices in compliance with its Code of Conduct.
8.	Details of the highest authority responsible for implementation and oversight of the
	Business Responsibility policies.
	Ms. Avantika Gupta, Director (DIN: 03149138) under the guidance of Mr. P P Gupta, Managing
	Director and the Board of Directors is responsible for implementation and oversight of the
	Business Responsibility policies.
9.	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, there is no such committee till the end of FY 2022-23. However, steps are being taken to
	constitute a committee to look after and review Safety, Health, Environment and Sustainability
	('SHES').

(c) Web Link of the Policies, if

available http://www.techno.co.in/

investor/codes_and_policies

10. Details of Review of NGRBCs by the Company:

2.	Whether the entity has translated the
	policy into procedures. (Yes / No)
3.	Do the enlisted policies extend to
	your value chain partners? (Yes/No)

Yes	Yes	Yes	Yes	Yes	Yes	No	Yes	Yes
Yes	Yes	Yes	Yes	Yes	No	No	Yes	No

Subject for Review

Performance against above

Indicate whether review was

Frequency (Annually/ Half yearly/

undertaken by Director / Committee of

Quarterly/ Any other - please specify)

the Board/Any other Committee

P1

P2

P3

P4

P5

P6

P7

P8

P9

P1

P2

P3

P4

P5

P6

P7

P8

P9

The policies of the Company are reviewed periodically or on a need

4. Name of the national and international All the policies are compliant with respective principles of codes/ certifications/labels/standards NGRBC guidelines, the Companies Act, 2013, and comply to

standards (e.g. SA 8000, OHSAS,		international standards of ISO 9001 (Quality Management), ISO
ISO, BIS) adopted by your entity and		14001(Environment Management) and ISO 45001 (Occupational
mapped to each principle.#		Health and Safety), applicable to respective policies.
5. Specific commitments, goals and		The company is committed to the principles of NGRBCs.
targets set by the entity with defined		Specifically on climate change, the company being in the EPC
timelines, if any.		business in power sector, takes utmost care while executing
		projects to reduce carbon emissions, conserve water and adopt
		efficient waste management practices.
6. Performance of the entity against		Being the first year of assessment and reporting, the comparison
the specific commitments, goals and		of commitment vis-à-vis performance of each of the principles is
targets along with reasons in case the		yet to be done. However, it is reviewed by the Management and
same are not met.		Board of Directors. periodically and the comparison/progress be
		reported next year onwards.

policies and follow-up action

Compliance with statutory requirements of relevance to the principles, and, rectification of any non- compliances

basis by Senior Leadership Team including Managing Director & Chief Executive Officer. During this assessment, the efficacy of the policies is reviewed and necessary changes to policies and procedures are implemented.

The Company is in compliance with the existing regulations as applicable and a Statutory Compliance Certificate on applicable laws is provided by the Managing Director & Chief Executive Officer / Chief Financial Officer / Chief General Counsel & Company Secretary to the Board of Directors.

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Techno Electric & Engineering Company Limited

1. 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. "No"
   No. The Company conducts periodic review of the policies internally by the Senior Management and Board which then drives the policies, projects and performance of the aspects of business responsibility and sustainability.
   However, the Company has engaged M/s. Price Waterhouse Coopers (PWC) as consultant to implement the ESG and related matters.
2. If answer to question (1) above is "No" i.e. not all Principles are covered by a policy, reasons to be stated:

Corporate

Performance

Beyond

Statutory

Financial

Overview

Summary

Business

Reports

Statements

Total

%age of persons

number of

in respective

training and

Topics / principles covered under the training and its

Segment

category covered

awareness

impact

by the awareness

programmes

programmes

held

Employees other

9

1.

Anti-Bribery & Anti-Corruption Policy

76%

than Board of

2.

Code of Conduct

Directors and

3.

Prevention of Sexual Harassment (POSH)

KMPs

4.

Whistleblower Policy

5.	Employee Grievance Policy
6.	Health And Safety Policy
7.	Human Rights Policy

Questions

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)

P1	P2	P3	P4	P5	P6	P7	P8	P9
Yes	Yes	Yes	Yes	Yes	Yes	No	No	No
No	No	No	No	No	No	Yes	Yes	Yes

2. 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):

The entity does not have the financial or/ human and technical resources available for the task (Yes/No)

No No No No No No No No No

				Monetary
		Name of the
NGRBC		Regulatory/
	enforcement		Amount (in `)		Brief of the case
Principle
	agencies/ judicial

Has an appeal been preferred?

It is planned to be done in the next financial		Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
year (Yes/No)
Any other reason (please specify)		No	No	No	No	No	No	No	No	No

SECTION C: PRINCIPLE-WISE PERFORMANCE DISCLOSURE

PRINCIPLE 1 - Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.

				institutions
Penalty /		Public		SEBI		1,88,800 (Both		7 Days delayed submission
Fine		Policy				BSE and NSE		of Quarterly Related Party
						@94,400 each)		Transaction Disclosure for
								half year ended 31st March,
								2022, consequent upon
								change in schedule by SEBI.

(Yes/No)

No

Essential Indicators

1. Percentage coverage by training and awareness programmes on any of the Principles during

the financial year:

		Non-Monetary
		Name of the Regulatory/				Has an appeal been
NGRBC Principle enforcement agencies/		Brief of the case
		preferred? (Yes/No)
		judicial institutions

Imprisonment

Total				%age of persons
number of
	in respective
training and Topics / principles covered under the training and its

Punishment

Nil

Segment	awareness		impact		category covered
				by the awareness
		programmes
						programmes
		held
Board of Directors	4		During the year, the Board of Directors of the	100%
(BoD)#			Company (including its Committees) has invested
				time on various updates comprising matters
				relating to an array of issues pertaining to the
				business, regulations, economy and environmental,
				social, governance parameters at each Board
				Meetings. The Statutory Auditor presented the
				regulatory updates at every meeting.
Key Managerial	3	1.	Anti-Bribery & Anti-Corruption Policy	100%
Personnel		2.	Code of Conduct
(KMP)#				3.	Prevention of Sexual Harassment (POSH)

3. 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
		Nil

4. 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, the Company does have the Anti-Bribery and Anti-Corruption (ABAC) policy. The Company has adopted a Whistle-blower Policy and Vigil Mechanism to provide a formal mechanism

to the Directors, employees and other external stakeholders to report their concerns about unethical behaviour, actual or suspected fraud or violation of the Company's Code of Conduct.

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The Policy provides for adequate safeguards against victimisation of employees who avail of the mechanism. No personnel of the Company have been denied access to the Chairperson of the Audit Committee. The Vigil Mechanism includes policies viz. the Whistle-Blower Policy, the ABAC Policy. This provides guidance to directors, officers and employees or persons who perform services for or on behalf of the Company on what is appropriate and acceptable, and what is not.

Under the above Policies, Compliance Officers have a functional reporting about any violation of the Policies to the Chairperson of the Audit Committee. Aggravated cases of breach of the said Policies shall be escalated to the Board of Directors. The Whistleblower Policy

and Vigil Mechanism ensures that strict confidentiality is maintained in such cases and no unfair treatment is meted out to a Whistleblower. The Company, as a Policy, condemns any kind of discrimination, harassment, victimisation or any other unfair employment practice being adopted against Whistleblowers. With an aim to create awareness, the Company also undertook awareness programmes.

The Anti Bribery and Anti Corruption Policy and Whistleblower Policy as adopted by the Company is available on the Company's website at: http://www.techno.co.in/investor/codes_ and_policies

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

		FY 2022-23		FY 2021-22
Directors
KMPs	Nil		Nil
Employees

6. Details of complaints with regard to conflict of interest:

Corporate		Performance		Beyond			Statutory		Financial
Overview		Summary		Business			Reports		Statements

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

Essential Indicators

1. 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.

		FY 2022-23		FY 2021-22		Details of improvements in environmental and social
				impacts
R&D	Not Applicable		Not Applicable		Not Applicable, because the Company execute
						projects as per the specification and requirement
						of the customer.
Capex	Not Applicable		Not Applicable		Not Applicable, because the Company's
						business is not capital intensive. It is a
						infrastructure execution company.

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

Yes. The Company sourced its materials for the project from reputed agencies in compliance with the project specifications set by the customer.

1. If yes, what percentage of inputs were sourced sustainably?
   More than 80% of the materials are sourced from reputed and sustainable sources.

3. 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) - Not Applicable, because the Company doesn't have any

products of its own.

Number of Complaints received in relation to issues of Conflict of Interest of the Directors

Number of Complaints received in relation to issues of Conflict of Interest of the KMPs

FY 2022-23

Number Remarks

NilNA

FY 2021-22

Number Remarks

NilNA

(b)	E-waste - All e-waste generated in-house, which is very minimum, is handed over to
	certified vendors for safe disposal.
(c)	Hazardous waste - Not Applicable, because there is no Hazardous Waste generated by
	the Company.
(d)	Other waste - Not Applicable
4. 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

7. Provide details of any corrective action taken or underway on issues related to fines / penalties /actiontakenbyregulators/lawenforcementagencies/judicialinstitutions,oncasesofcorruption and conflicts of interest -

Not Applicable

Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to

address the same.

No. Not Applicable to the nature of business Company.

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