Everest Kanto Director Discussions


Dear Members,

The Directors are pleased to present the 44th Annual Report and the Audited Statement of Accounts for the financial year ended March 31, 2023.

FINANCIAL RESULTS

The financial performance of the Company for the year ended March 31, 2023 is summarized below:

( in Lakhs, unless otherwise stated)

Particulars

Standalone

Consolidated

2022-23 2021-22 2022-23 2021-22

Continuing Operations

Revenue from operations

78,965.46 1,26,781.61 1,27,449.09 1,69,882.81

Other income

387.12 1,065.48 544.76 1,360.88

Total Income

79,352.58 1,27,847.09 1,27,993.85 1,71,243.69

Profit before exceptional items and tax

8,843.89 34,048.48 11,578.48 35,989.00

Profit before tax from continuing operations

9,083.65 33,504.77 9,471.76 37,136.56

Profit after tax from continuing operations

7,204.49 22,817.07 7,589.11 26,452.92

Discontinued Operations

Profit / (Loss) from discontinued operations before tax

- - - 62.00

Profit from discontinued operations after tax

- - - 62.00

Profit after tax from total operations

7,204.49 22,817.07 7,589.11 26,514.92

Total Comprehensive Income

7,232.49 22,811.16 10,434.95 27,809.64

Earnings per share (not annualised) (in ):

Basic & diluted earnings per share (face value of 2/- each)

(i) Continuing operations

6.42 20.34 6.79 23.58

(ii) Discontinuing operations

- - - 0.06

(iii) Total operations

6.42 20.34 6.79 23.64

PERFORMANCE REVIEW

Performance of the Company during FY23, was lower as compared to last year. Frequent increase in CNG gas prices resulted in decline in consumption of CNG and therefore, significantly impacted the demand for CNG cylinders, primarily in the commercial vehicle (CV) segment. However, the industrial segment of the Company helped in offsetting the decline and supported the performance.

On standalone basis, for the financial year 2022-23, revenue from operations stood lower at 78,965.46 Lakhs as compared to 1,26,781.61 Lakhs previous year. Accordingly, Net Profit for financial year 2022-23 was also lower at 7,204.49 Lakhs as compared to 22,817.07 Lakhs last year.

On consolidated basis, the Company sold 8,00,874 units during financial year 2022-23 as compared to 11,03,620 units in the previous year. Revenue for financial year 2022-23 stood at 1,27,449.09 Lakhs against the previous years revenues of 1,69,882.81 Lakhs. Net profit after tax from continuing operations 7,589.11 Lakhs for financial year 2022-23 was lower against 26,452.92 Lakhs for financial year 2021-22.

CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of the Company and its subsidiaries for the year 2022-23 are prepared in compliance with the applicable provisions of the Companies Act, 2013 (the Act) and as stipulated under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including any amendments thereto ("hereinafter referred to as LODR Regulations"), as well as in accordance with the Indian Accounting Standards (IND AS) notified under the Companies (Indian Accounting Standards) Rules, 2015. Further, as per Section 129 of the Act and IND AS-27 on Consolidated and Separate Financial Statements, the Audited Consolidated Financial Statements together with Auditors Report thereon forms part of this Annual Report.

DIVIDEND

Keeping in view the risks and returns associated with the business and expected increase in the scalability of operations of the Company, your Directors are pleased to recommend for approval of Members, a final dividend of 0.70 per equity share of face value of 2/- each (35%) for the year ended March 31,2023. The dividend would result in a cash outflow of 785 Lakhs.

DIVIDEND DISTRIBUTION POLICY

The Company has formulated Dividend Distribution Policy in accordance with Regulation 43A of the LODR Regulations for bringing transparency in the matter of declaration of dividend and to protect the interest of investors. The Dividend Distribution Policy is available on the website of the Company: https:// everestkanto.com/wp-content/uploads/2023/08/EKC-Dividend- Distribution-Policy.pdf.

TRANSFER TO RESERVES

During the year under review, the Company does not propose to transfer any amount to reserves.

DEPOSITS UNDER CHAPTER V OF COMPANIES ACT, 2013

The Company has neither accepted nor renewed any Deposits from the public within the ambit of Section 73 of the Act read with the Companies (Acceptance of Deposits) Rules, 2014.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The particulars of loans given, guarantees provided and investments made, have been duly disclosed in the financial statements.

SHARE CAPITAL STRUCTURE

The Paid-up Share Capital of the Company is 2,244 Lakhs divided into 11,22,07,682 Equity Shares of 2/- each.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

There is no such event which may lead to material changes / commitments that would affect the financial position of the Company, between the period from the end of the financial year and the date of this report.

INTERNAL FINANCIAL CONTROL SYSTEM

The Company has adequate internal financial control system (IFCs) to commensurate with the size, scale and complexity of its operations. The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the business and functions are systematically addressed through mitigation action on continuing basis. These are routinely tested and certified by Statutory as well as Internal Auditors. The audit observations, if any, on internal financial controls are periodically reported to the

Audit Committee for review. The Auditors Report also includes their reporting on IFCs over Financial Reporting.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE

No such orders have been passed by any Regulators or Courts or Tribunals impacting the going concern status and Companys operations in future.

DISCLOSURE, AS TO WHETHER MAINTENANCE OF COST RECORDS AS SPECIFIED BY THE CENTRAL GOVERNMENT UNDER SUB-SECTION (1) OF SECTION 148 OF THE COMPANIES ACT, 2013, IS REQUIRED BY THE COMPANY AND ACCORDINGLY SUCH ACCOUNTS AND RECORDS ARE MADE AND MAINTAINED

Pursuant to Section 148(1) of the Act the Company has maintained cost records as specified by the Central Government.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis Report for the financial year 2022-23, as stipulated under Regulation 34(2)(e) read with Schedule V of LODR Regulations, is presented in a separate section forming part of the Annual Report.

CORPORATE GOVERNANCE

Pursuant to Schedule V of LODR Regulations, the Corporate Governance Report along with the Secretarial Auditors Certificate thereon forms part of the Annual Report.

The Company has devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively.

RISK MANAGEMENT

Pursuant to Section 134(3)(n) of the Act and Regulation 21 of LODR Regulations, the Company has a Risk Management Committee (RMC) comprising Mr. M. N. Sudhindra Rao (Chairman), Dr. Vaijayanti Pandit, Independent Directors and Mr. Puneet Khurana, Managing Director of the Company. The RMC frame, implement and monitor the risk management plan of the Company and is responsible for monitoring and reviewing the risk management plan and ensuring its effectiveness. The Company has adopted a Risk Management Policy which lays down the framework to define, assess, monitor and mitigate the business, operational, financial and other risks associated with the business of the Company. The Risk Management Policy enables for growth of the Company by helping its business to identify risks, assess, evaluate and monitor risks continuously and undertake effective steps to manage these risks. During 2022-23, three Meetings were held on August 9, 2022, February 1, 2023 and February 8, 2023, wherein, the risks and relevant mitigation measures identified for the Company were reviewed and discussed.

CREDIT RATING FROM CARE RATINGS

During the year, CARE Ratings in respect of the borrowings of the Company was as under:

Facility

Amount ( in Crore) Rating

Long Term Bank Facilities

134.00 CARE A- Stable

(Single A Minus; Outlook: Stable)

Short Term Bank Facilities

75.55 CARE A2 (A Two)

Total

209.55

SUBSIDIARIES

As on March 31, 2023, the Company has (a) one wholly owned overseas subsidiary company, viz., EKC International FZE in Dubai, UAE, (b) three step down wholly owned overseas subsidiary companies, viz. EKC Hungary Kft in Hungary, CP Industries Holdings, Inc. in USA and EKC Europe GmbH in Germany (c) two step down subsidiaries i.e EKC Europe zrt. and EKC Egypt SAE and (d) Two wholly owned Indian subsidiary Companies viz., Calcutta Compressions & Liquefaction Engineering Ltd and Next Gen Cylinder Private Limited.

During 2022-23, EKC International FZE, Wholly Owned Subsidiary of the Company had entered into a Joint Venture Agreement with Dr. Mohamed Saad Eldin on April 19, 2022 to establish a CNG cylinder manufacturing facility for Middle East and North Africa Region. Therefore, incorporated a subsidiary in the name of EKC Egypt SAE in Egypt on November 13, 2022 with 80% shareholding of EKC International FZE.

The Company had registered the dissolution process of its Wholly Owned Subsidiary (WOS), EKC Industries (Thailand) Co. Limited with the Ministry of Commence, Thailand on August 20, 2021. The liquidation process was completed on December 20, 2022 consequent upon which EKC Industries (Thailand) Co. Limited ceased to be a WOS of the Company.

The Current Corporate Structure is as under:

A statement containing details of performance and salient features of the financial statements of Subsidiary/ Associate/ Joint Venture companies, as per Section 129(3) of the Act, is provided in Form AOC I after the standalone financial statements and therefore not repeated here. The Policy for determining material subsidiaries of the Company is uploaded on the Companys website at https://everestkanto.com/wp-content/uploads/2018/12/ Policv-on-Material-Subsidiary.pdf.

As on March 31, 2023 EKC International FZE, a wholly owned subsidiary in Dubai is a material subsidiary of the Company.

The audited financial statement including the consolidated financial statement of the Company and all other documents required to be attached thereto are available on the Companys website and can be accessed at http://www.everestkanto.com/ investors/annualreports. The financial statements of the subsidiaries, as required, are available on the Companys website under sub-section subsidiaries of Investors section.

DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMPs)

In accordance with the provisions of Section 152 of the Act Mr. Pushkar Khurana, Executive Director (DIN: 00040489) retire by rotation and being eligible offers himself for re-appointment. The Board recommends his re-appointment for the consideration of the Members of the Company at the ensuing Annual General Meeting (AGM) and forms part of the Notice.

The Members had at the 40th AGM held on September 30, 2019 appointed Mr. Ghanshyam Karkera (DIN: 00001829) as an Independent Director of the Company to hold office for five consecutive years from October 30, 2018 up to October 29, 2023. Pursuant to the provisions of the Act and based on the recommendation of Nomination & Remuneration Committee (NRC), the Board recommends, the re-appointment of Mr. Ghanshyam Karkera as Independent Director for a second term of five consecutive years from October 30, 2023 up to October 29, 2028. The approval of the Members through a Special Resolution is being sought at the 44th AGM and forms part of the Notice.

The brief resume / details regarding the Directors proposed to be appointed / re-appointed as above are furnished in the Notice of 44th AGM.

During the year under review, Ms. Reena Shah, Company Secretary & Compliance Officer of the Company had resigned from the services of the Company with effect from closing of business hours on November 23, 2022. The Board has based on the recommendation of NRC, appointed Mr. Vishal Totla as the Company Secretary & Compliance Officer of the Company with effect from May 15, 2023.

As on the date of this report, Mr. Puneet Khurana, Managing Director, Mr. Sanjiv Kapur, Chief Financial Officer and Mr. Vishal Totla, Company Secretary & Compliance Officer of the Company are the Key Managerial Personnel of the Company in accordance with the provisions of Sections 2(51) and 203 of the Act.

STATEMENT ON DECLARATION BY INDEPENDENT DIRECTORS

As required under Section 149(7) of the Act, the Company has received declarations from all Independent Directors confirming that they meet the criteria of independence as specified in Section 149(6) of the Act, as amended, read with Rules framed thereunder and Regulation 16(1 )(b) of the LODR Regulations. In terms of Regulation 25(8) of the LODR Regulations, the Independent Directors have confirmed that they are not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact their ability to discharge their duties with an objective independent judgement and without any external influence and that they are independent of the Management. The Board of Directors of the Company have taken on record the declaration and confirmation submitted by the Independent Directors after undertaking due assessment of the veracity of the same.

The Board is of the opinion that the Independent Directors possess the requisite qualifications, experience, expertise and they hold high standards of integrity.

The Independent Directors have complied with the Code for Independent Directors prescribed in Schedule IV to the Act and have also confirmed that their registration with the databank of Independent Directors maintained by the Indian Institute of Corporate Affairs is in compliance with the requirements of the Companies (Appointment and Qualifications of Directors) Rules, 2014.

During the year, the non-executive Directors of the Company had no pecuniary relationship or transactions with the Company, other than sitting fees, commission, and reimbursement of expenses incurred by them for the purpose of attending Meetings of the Company.

NUMBER OF MEETINGS OF THE BOARD

During the year, four (4) Meetings of the Board of Directors were held, the details of which are given in the Corporate Governance Report that forms part of this Report. The intervening gap between any two Meetings of the Board was not more than one hundred and twenty (120) days as stipulated under the Act and LODR Regulations.

COMMITTEE OF THE BOARD

The Board of Directors have the following Committees:

1. Audit Committee

2. Nomination & Remuneration Committee (NRC)

3. Stakeholders Relationship Committee

4. Corporate Social Responsibility Committee

5. Risk Management Committee

The details of the Committees along with their composition, number of Meetings and attendance at the Meetings are provided in the Corporate Governance Report.

COMPANYS POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION

In accordance with the provisions of the Section 178 of the Act read with the Rules made thereunder and Regulation 19 of the LODR Regulations, the Company has constituted NRC and has formulated "Nomination and Remuneration Policy" containing criteria for determining qualifications, positive attributes, independence of a director and other matters provided under section 178(3) of the Act for selection of any Director, Key Managerial Personnel and Senior Management Employees.

The said policy of the Company is directed towards rewarding performance, based on review of achievements on a periodic basis. The Board of Directors has approved Nomination and Remuneration policy and the same is available at the Companys website under the web link https://everestkanto.com/wp-content/ uploads/201 8/12/Policy-Nomination-Remuneration- Evaluation.pdf.

The details pertaining to composition of the NRC are included in the Corporate Governance Report, which forms part of this Annual Report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Companys CSR Policy provides guidelines to conduct CSR activities of the Company, which can be accessed at the Companys website at https://everestkanto.com/wp-content/ uploads/2023/08/EKC CSR-Policy.pdf.

During 2022-23, your Company has undertaken some projects/ programs as a part of CSR Initiative in accordance with the CSR Policy and spent 347.62 Lakhs towards various CSR activities, in line with the requirements of Section 135 of the Act. The CSR Report for the Financial Year 2022-23 in prescribed form as per Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules 2014, is enclosed as "Annexure-I" to the Directors Report and forms part of the Annual Report.

VIGIL MECHANISM/WHISTLE BLOWER

The Company has formulated and established a robust Vigil Mechanism named Whistle Blower Policy in accordance with the provisions of the Act and LODR Regulations to deal with the instances of fraud and mismanagement and to enable Directors and Employees to report genuine concerns about unethical behavior, actual or suspected fraud or violation of Code of Conduct and to report incidents of leak or suspected leak of unpublished price sensitive information. The employees and other stakeholders have direct access to the Chairperson of the Audit Committee for lodging concerns, if any, for review. No person has been denied access to the Chairperson of the Audit Committee. The details of the same have been stated in the Report on Corporate Governance. The Whistle Blower Policy is available on the website of your Company at https:// everestkanto.com/wp-content/uploads/201 8/12/Vigil- Mechanism-Policy.pdf.

TRANSACTIONS WITH RELATED PARTIES

All transactions entered by the Company during the financial year under review, with related parties were on arms length basis and in the ordinary course of business and hence not falling under the ambit of Section 188 of the Act.

No Related Party Transactions (RPTs) were entered into by the Company during the financial year, which attracted the provisions of Section 188 of the Act. There being no ‘Material RPTs / contracts / arrangements as defined under Regulation 23 of the LODR Regulations, hence there are no details to be disclosed in Form AOC-2 in that regard. All RPTs are mentioned in the notes to accounts which sets out related party disclosures.

During the year 2022-23, pursuant to Section 177 of the Act and Regulation 23 of LODR Regulations, all RPTs were placed before the Audit Committee for its approval. Prior omnibus approval of Audit Committee was obtained for the transactions which were of repetitive nature and in the ordinary course of business.

The Policy on materiality of RPTs and also on dealing with RPTs framed under the LODR Regulations is available on Companys website and web link thereto is https://everestkanto.com/wp- content/uploads/2022/02/Related-Partv-Transaction-Policv.pdf.

ANNUAL EVALUATION

The NRC has approved a framework / policy for performance evaluation of the Board, Committees of the Board and the individual members of the Board (including the Chairperson) which includes criteria for performance evaluation, which is reviewed annually by the Committee. A questionnaire for the evaluation of the Board, its committees and the individual members of the Board (including the Chairperson), designed in accordance with the said framework and covering various aspects of the performance of the Board and its Committees, including composition and quality, roles and responsibilities, processes and functioning, adherence to Code of Conduct and Ethics and best practices in Corporate Governance as mentioned in the Guidance Note on Board Evaluation issued by the Securities and Exchange Board of India on January 5, 2017 was circulated to the Directors.

Pursuant to the provisions of the Act and LODR Regulations and based on policy devised by the committee, the board has carried out annual evaluation of its own performance, its committees and individual directors. The Board performance was evaluated on inputs received from all the Directors after considering criteria as mentioned aforesaid. The performance of the committees was evaluated by the Board of Directors on inputs received from all committee members after considering criteria as mentioned aforesaid. Pursuant to LODR Regulations, performance evaluation of independent director was done by the entire board, excluding the independent director being evaluated.

The performance evaluation of non-independent Directors and the Board as a whole and Chairman of the Board was also carried out by the Independent Directors of the Company through separate meeting on March 29, 2023 and shared with NRC/ Board.

COMPLIANCE WITH THE PROVISIONS OF SECRETARIAL STANDARD - 1 (SS-1) AND SECRETARIAL STANDARD - 2 (SS-2)

The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively. The Company has complied with SS-1 and SS-2.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of sub-section 3 and 5 of the Section 134 of the Act, your Companys Directors, based on the framework for internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory, cost and secretarial auditors and external agencies, the reviews performed by the Audit Committee and representations received from the Management, are of the opinion that the Companys internal financial controls were adequate and effective during the financial year 2022-23. The Board of Directors, based on the assurance given of the business operations, to the best of their knowledge and ability, confirm that:

i) in the preparation of the annual accounts for the year ended March 31, 2023, the applicable accounting standards have been followed and there are no material deviations;

ii) the Directors in consultation with the Statutory Auditors selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2023 and of the profit of the Company for the period ended on that date;

iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv) the Directors have prepared the annual accounts on a going concern basis;

v) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

vi) the Directors have devised proper system to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

AUDITORS AND AUDIT REPORT

a) Statutory Auditors

At the 39th AGM held on September 29, 2018 the Members of the Company had approved the reappointment of M/s. Walker Chandiok & Co LLP, Chartered Accountants (Firm Registration No. 001076N) as Statutory Auditors of the Company for a second term of five years to hold office from the conclusion of 39th AGM until the conclusion of 44th AGM to be held in the year 2023, to examine and audit the

accounts of the Company for five consecutive financial years from 2018-19 to 2022-23. There are no qualifications, adverse remarks, reservations or disclaimer made by Walker Chandiok & Co LLP, Statutory Auditors, in their report for the financial year ended March 31, 2023.

Pursuant to the provisions of Section 139 of the Act, read with the Companies (Audit and Auditors) Rules, 2014, based on the recommendation of Audit Committee, it is proposed to appoint M/s. Suresh Surana & Associates LLP, (SSA) Chartered Accountants(Firm Registration No. 121750W/W- 100010) as Statutory Auditors for a term of five years from the conclusion of 44th AGM till the conclusion of 49th AGM of the Company to be held in the year 2028, to examine and audit the accounts of the Company for financial years between 2023-24 to 2027-28 (both inclusive). SSA have, pursuant to Section 139 of the Act, furnished a certificate regarding their eligibility of appointment.

Resolution seeking approval of Members for appointment of SSA as Statutory Auditors along with details as per Regulation 36(5) of LODR Regulations regarding the proposed remuneration, basis of recommendation of appointment, reason for material change in remuneration, credentials of SSA forms part of the Notice of 44th AGM of the Company.

b) Branch Auditors

The Board of Directors of the Company at their Meeting held on February 8, 2023 re-appointed M/s. Arun Arora & Co., Chartered Accountants as Branch Auditors of the Company for financial year 2022-23. The Company has received a letter from M/s. Arun Arora & Co. to the effect that their re-appointment, if made, for the financial year 202223, would be within the limits prescribed under Section 141 (3)(g) of the Act and that they are not disqualified for re-appointment within the meaning of Section 141 of the Act. There is no qualification, reservation or adverse remark made by them.

c) Cost Auditors

As per the requirement of Central Government and pursuant to Section 148 of the Act read with the Companies (Cost Records and Audit) Rules, 2014, your Company carries out an audit of cost records. The Board of Directors, on recommendation of Audit Committee, has appointed, M/s. Shekhar Joshi & Co., Cost Accountants (Membership No. M/10700) as Cost Auditors of the Company for the Financial Year 2022-23 and they have been reappointed as Cost Auditors of the Company for 2023-24.

In terms of the provisions of Section 148(3) of the Act read with the Rule 14(a)(ii) of the Companies (Audit and Auditors) Rules, 2014, approval of the Members is being sought for ratification of their remuneration at the ensuing AGM.

d) Secretarial Auditors

The Board of Directors has re-appointed M/s. Aashish K. Bhatt & Associates, Practicing Company Secretaries, having membership no. 19639 as the Secretarial Auditor under Section 204 of the Act for conducting Secretarial Audit for the financial year 2022-23. The Report of the Secretarial Auditor in prescribed Form MR-3 is annexed to the Directors Report

as "Annexure II" and does not contain any qualification, reservation or adverse remarks. M/s. Aashish K. Bhatt & Associates have been reappointed as the Secretarial Auditor for 2023-24.

DETAILS OF FRAUD REPORTED BY AUDITORS

There were no frauds reported by the Auditors under provisions of Section 143(12) of the Act and the Rules made thereunder.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under Section 134(3)(m) of the Act, are provided in "Annexure III" to this Report.

ANNUAL RETURN

Pursuant to Sections 92(3) and 134(3)(a) of the Act, the Annual Return of the Company for 2022-23 is placed on the website of the Company and can be accessed at https://everestkanto.com/ annual-return/.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Pursuant to Regulation 34(2) of LODR Regulations, as amended, the Business Responsibility and Sustainability Report (BRSR) describing the initiatives taken by the Company from an environmental, social and governance perspective is annexed as "Annexure IV" and forms an integral part of this Report and is also uploaded Companys website and can be accessed at https://everestkanto.com/investors/annual-reports/.

ENVIRONMENT AND SAFETY

Your Company is conscious of the importance of environmentally clean and safe operations. Your Company endeavours that the conduct of all operations is in such manner so as to ensure safety of all. and compliance of statutory and industrial requirements for environment protection and conservation of natural resources to the extent possible.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended, a statement showing the names of top ten employees in terms of remuneration drawn and names and other particulars of the employees drawing remuneration in excess of the limits set out in the said Rules forms part of this Report.

Disclosures relating to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended forms part of this Report.

The said information is available for inspection on all working days, during business hours, at the Registered Office of the Company up to the date of AGM. Any member interested in obtaining such information may write to the Company Secretary and the same will be furnished on request.

Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

a) Ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the Financial Year 2022-23

Name of the Directors

Designation Remuneration of Directors ( in Lakhs) Median Remuneration of Employees ( in Lakhs) Ratio of median remuneration

Mr. Pushkar Khurana *

Executive

Chairman

97.05 2.78 34.86

Mr. Puneet Khurana #

Managing

Director

356.00 2.78 127.87

Mr.

Ghanshyam Karkera @

Independent

Director

11.90 2.78 4.27

Mr. Sudhindra Rao @

Independent

Director

12.20 2.78 4.38

Dr. Vaijayanti Pandit @

Independent

Director

9.20 2.78 3.30

Ms. Uma Acharya @

Independent

Director

12.50 2.78 4.49

* Commission of 97.05 Lakhs was paid to Mr. Pushkar Khurana, Executive Chairman of the Company for FY 2022-23 in June 2023.

# Comprises commission of 97.05 Lakhs paid to Mr. Puneet Khurana, Managing Director of the Company forF.Y. 2022-23 in June 2023.

@ Remuneration comprises sitting fees for attending the Meetings of the Board of Directors and of the Committees thereof and commission of 5 Lakhs paid in June 2023 to each Independent Director for F. Y. 2022-23.

b) Percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the Financial Year 2022-23

Name of the Directors

Designation % increase in remuneration in financial year

Executive Directors:

Mr. Pushkar Khurana*

Executive-

Chairman

NA

Mr. Puneet Khurana

Managing

Director

Nil

Non-Executive Independent Directors:

Mr. M. N. Sudhindra Rao

Independent

Director

19.61%

Mr. Ghanshyam Karkera

Independent

Director

19.00%

Dr. Vaijayanti Pandit

Independent

Director

12.20%

Mrs. Uma Acharya

Independent

Director

20.19%

Key Managerial Personnel other than Managing Director

Mr. Sanjiv Kapur

Chief Financial Officer Nil

Ms. Reena Shah (upto Nov. 2022)

Company

Secretary

Nil

c) Percentage increase in the median remuneration of employees in the financial year 2022-23: 6.79%.

d) Number of permanent employees on the rolls of Company: 629.

e) Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

The average percentile increases in the salaries of employees other than the managerial personnel in the financial year 2022-23 is at 7% whereas the percentile increase in the managerial remuneration during the year is Nil.

f) Affirmation that the remuneration is as per the remuneration policy of the Company:

The Company affirms that the remuneration is as per the Remuneration policy of the Company.

g) Name of top 10 employee of Company, who were employed for part of year, was in receipt of remuneration for that period which, in the aggregate, was not less than eight lakhs fifty thousand rupees per month: NA

(i) Name of employee of Company, who employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the Company.

(ii) if employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than eight lakh and fifty thousand rupees per month.

(iii) If the employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company

The details are mentioned in the table no. (i) Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

h) The particulars of employees posted and working in a country outside India, not being directors or their relatives, drawing more than sixty lakh rupees per financial year or five lakh rupees per month, as the case may be, as may be decided by the Board: N.A.

Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:

(i) if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than eight lakhs fifty thousand rupees per month - NA.

Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:

(ii) if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than one crore and two lakh rupees.

Name of the

Employee

Designation of the employee Remuneration

received

( in Lakhs)

Nature of

employment,

whether

contractual

or

otherwise

Qualifications

and

experience of the employee

Date of commencement of employment The age of such employee The last employment held by such

employee before joining the company

The

Percentage of equity shares held by the employee in the company within the meaning of clause (iii) of sub rule (2)

Whether any such employee is a relative of any director or manager of the company and if so, name of such

director or manager

Mr. Puneet Khurana

Managing

Director

358.95 Full Time B.Com, MBA, International Business 14.11.2019 49 N.A. 9.15% Mr. Pushkar Khurana Executive Chairman

LISTING OF SECURITIES

The Equity shares of the Company are listed on the Stock Exchanges viz. BSE Limited and National Stock Exchange of India Limited.

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL)

The Company is committed and dedicated in providing a healthy and harassment free work environment to every individual of the Company, a work environment that does not tolerate sexual harassment. We highly respect dignity of everyone involved at our work place, whether they are employees, suppliers or our customers. We require all employees to strictly maintain mutual respect and positive attitude towards each other. The said policy is available on the Companys website and the web link thereto is https://everestkanto.com/wp-content/uploads/2018/12/Policy- on-Sexual-Harassment-at-work-placel.pdf.

The Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Number of complaints pending as on the beginning of the financial year - Nil.

Number of complaints filed during the financial year- Nil. Number of complaints pending at the end of the financial year- Nil.

Proceeding under Insolvency and Bankruptcy Code, 2016

There are no proceedings, either filed by the Company or against the Company, pending under the Insolvency and Bankruptcy Code, 2016 as amended, before the National Company Law Tribunal or other Courts as on March 31, 2023.

Other Disclosures

During the year, there were no transactions requiring disclosure or reporting in respect of matters relating to:

(a) issue of equity shares with differential voting rights as to dividend, voting or otherwise;

(b) issue of shares (including sweat equity shares) to employees of the Company under any scheme;

(c) raising of funds through preferential allotment or qualified institutional placement;

(d) instance of one-time settlement with any bank or financial institution.

ACKNOWLEDGEMENT AND APPRECIATION

The Board of Directors express their appreciation for the assistance, support and co-operation received from the Banks, Government Authorities, Customers, Vendors and Members during the year under review. The Directors also wish to place on record their deep sense of appreciation for the committed services by the executives, staff and workers of the Company globally.

For and on behalf of the Board

Pushkar Khurana

Chairman & Executive Director DIN: 00040489

Dubai

August 10, 2023

ANNUAL CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES REPORT ANNEXURE TO THE REPORT OF THE BOARD OF DIRECTORS FOR THE FINANCIAL YEAR ENDED MARCH 31,2023

Everest Kanto Cylinder Limited (the Company) positively appreciates the decision taken by the Government of India with respect to CSR towards the Society at large. Legal framework of CSR is an edge to Corporate Charitable / Reformative approach towards the Society to which the Corporate belongs. As per the said policy, all our efforts are focused towards two goals: to be a responsible and dynamic enterprise towards the well-being of society and create a value worthwhile for all the stakeholders of our Company. Our approach is to interweave social responsibility into the Companys mainstream business functions through translating commitments into policies, which not only drives all employees but influence and mobilize stakeholders, especially partners and suppliers, to embrace responsible business practices in their respective spheres of action.

ANNUAL REPORT ON CSR ACTIVITIES

1. A brief outline of the Companys CSR policy of the Company:

The policy affirms business objectives and strategy along with commitment of the Company to preserve natural resources and augment the growth and development of employees and their families, the communities the Company operates in, suppliers/ vendors, and investors of the Company. Through the social policy manual, the Company seeks to engage with all the stakeholders, using it as a reference or guideline for all stakeholders and practitioners.

2. The Composition of the CSR Committee:

In accordance with the provisions of Section 135 of the Companies Act, 2013, the Board of Directors of the Company has constituted a CSR Committee. The Composition of CSR Committee is as under:

SR. No. Name of the Director

Designation / Nature of Directorship Number of Meetings of CSR Committee held during the year Number of meetings of CSR Committee attended during the year

1. Ms. Uma Acharya

Chairperson - Non-Executive, Independent 2 2

2. Mr. Pushkar Khurana

Member - Promoter, Executive 2 2

3. Mr. Puneet Khurana

Member - Promoter, Executive 2 2

4. Dr. Vaijayanti Ajit Pandit

Member - Non-Executive, Independent 2 2

3. Web-link where composition of CSR Committee, CSR Policy and CSR projects approved by the Board are disclosed on the website of the Company are as under:

• CSR Committee Composition and CSR Policy: https://everestkanto.com/wp-content/uploads/2023/08/EKC CSR-Policy.pdf.

• CSR Projects programmes undertaken by the Company: https://everestkanto.com/investors/csr/.

4. Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report): NA.

5. (a) Average net profit of the Company as per Section 135(5): 17,381 Lakhs.

(b) Two percent of average net profit of the Company as per Section 135(5): 347.62 Lakhs.

(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: 5.97 Lakhs.

(d) Amount required to be set-off for the financial year, if any: 5.97 Lakhs.

(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: 341.65 Lakhs.

6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): 291.93 Lakhs were spent on

projects other than ongoing projects as on March 31,2023 and 50 Lakhs were transferred to unspent account for an ongoing project which was subsequently released for utilisation (as per the proposal passed by the CSR Committee) in July 2023.

(b) Amount spent in Administrative Overheads: Nil.

(c) Amount spent on Impact Assessment, if applicable: Nil.

(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: 341.93 Lakhs.

(e) CSR amount spent or unspent for the Financial Year:

Total Amount Spent for the Financial Year ( in Lakhs)

Amount Unspent ( in Lakhs)

Total Amount transferred to Unspent CSR Account as per Section 135(6)

Amount transferred to any fund specified under Schedule VII as per second proviso to Section 135(5)

Amount

( in Lakhs)

Date of transfer Name of the Fund Amount Date of transfer

341.93

50.00 April 27, 2023 Nil Nil Nil

(f) Excess amount for set off, if any - 0.25 Lakhs

Sl. No. Particular

Amount ( in Lakhs)

(i) Two percent of average net profit of the company as per Section 135(5)

347.65

(ii) Total amount spent for the Financial Year

341.93

(iii) Excess amount spent for the financial year [(ii)-(i)]

--

(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any

5.97

(v) Amount available for set off in succeeding financial years [(iii)-(iv)]

0.25

7. Details of Unspent CSR amount for the preceding three financial years:

SR.

No.

Preceding

Financial

Year

Amount transferred to Unspent CSR Account under section 135 (6)

( in Lakhs)

Balance Amount in Unspent CSR Account under Section 135(6)

( in Lakhs)

Amount Spent in the Financial Year

( in Lakhs)

Amount transferred to a Fund as specified under Schedule VII as per second proviso of section 135(5), if any

Amount remaining to be spent in succeeding Financial Years ( in Lakhs)

Deficiency, if any

Amount Date of ( in Lakhs) transfer

1.

2021-22

Nil

2.

2020-21

3.

2019-20

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No

If yes, enter the number of Capital assets created/acquired: Not Applicable.

Details relating to such asset(s) so created or acquired through CSR amount spent in the Financial Year: Not Applicable.

SR.

No.

Short particulars of the property or asset(s) [including complete address and location of the property]

Pin code of the Property or asset(s)

Date of creation

Amount of CSR amount spent

Details of entity/ Authority/ beneficiary of the registered owner

CSR

Registration Number, if applicable

Name Registered

Address

Nil

(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/ Gram panchayat are to be specified and also the area of the immovable property as well as boundaries).

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per Section 135(5): Not applicable.

For and on behalf of the Board

Place: Mumbai Date: August 10, 2023

Uma Acharya

Chairperson of CSR Committee

Puneet Khurana

Managing Director

FORM NO. MR-3

SECRETARIAL AUDIT REPORT

For the Financial Year Ended March 31, 2023

[Pursuant to Section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,

The Members,

Everest Kanto Cylinder Limited

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Everest Kanto Cylinder Limited (hereinafter called "the Company"). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing my opinion thereon.

Based on the verification of Companys books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit period covering the financial year ended on March 31, 2023 complied with the statutory provisions listed hereunder and also that the Company has followed proper Board - processes and have required compliance - mechanism in place to the extent, in the manner and subject to the reporting made hereinafter.

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on March 31, 2023, according to the provisions of:

(i) The Companies Act, 2013 (the ‘Act) and the Rules made thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA) and the rules made thereunder;

(iii) The Depositories Act, 1996 and the Regulations and byelaws framed thereunder;

(iv) The Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment and Overseas Direct Investments. No External Commercial Borrowings were applicable;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act):-

a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 - Not applicable;

d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 - Not Applicable;

e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 - Not Applicable;

f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993, regarding the Companies Act and dealing with client - Not applicable;

g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 - Not applicable; and

h) The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 - Not applicable.

Based on the compliance mechanism established by the Company, which has been verified on test checked basis and the Compliance Report submitted to and taken on record by the Board of Directors of the Company, we are of the opinion that during the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

I have also examined compliance with applicable clauses of the following:

(i) Secretarial Standards issued by the Institute of the Company Secretaries of India.

(ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI (LODR) Regulations, 2015).

During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations and Guidelines, Standards etc. mentioned above.

I further report, I have relied on necessary disclosure(s) from Directors / KMPs and on confirmation received from the Company, about no specific applicable laws to the industry where Company operates, however general compliance system prevails in the Company and on examination of the relevant documents and records in pursuance thereof, on test-check basis, the Company has complied with them.

I further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Independent Directors. There were no changes in the composition of Board of Directors that took place during the period under review.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance including shorter notice and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

As per the minutes of the meetings duly recorded and signed by the Chairman, the decisions of the Board were unanimous and no dissenting views were expressed.

Based on the representation made by the Company and relied upon, I further report that there are adequate systems and processes in the company commensurate with its size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that during the audit period, the Company has undertaken event / action having a major bearing on the Companys affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. referred to above viz.

i. Declaration and payment of final dividend for the Financial Year 2021-22;

ii. Payment of profit related commission to Independent Directors for F.Y. 2021-22;

iii. Payment of profit related commission to Mr. Puneet Khurana, Managing Director for F.Y. 2021-22 within the limit u/s 197;

iv. Payment of profit related commission to Mr. Pushkar Khurana, Chairman & Executive Director of the Company for F.Y. 2022-23;

v. Resignation of Ms. Reena Shah as Company Secretary and Compliance Officer.

For Aashish K. Bhatt & Associates

Practicing Company Secretaries (ICSI Unique Code S2008MH100200)

Aashish K. Bhatt

Proprietor ACS No.: 19639 COP No.: 7023

Place: Mumbai UDIN: A019639E000770125

Date: 10.08.2023 Peer Review Cert. No.: 2959/2023

This Report is to be read with our letter annexed as Appendix A, which forms integral part of this report.

APPENDIX A

To,

The Members,

Everest Kanto Cylinder Limited

My report of even date is to be read along with this letter.

1. The responsibility of maintaining Secretarial record is of the management and based on my audit, I have expressed my opinion on these records.

2. I am of the opinion that the audit practices and process adopted to obtain assurance about the correctness of the secretarial records were reasonable for verification on test check basis.

3. I have not verified the correctness and appropriateness of financial records and books of accounts of the Company.

4. The management is responsible for compliances with corporate and other applicable laws, rules, regulations, standards etc. My examination was limited to the verification of procedure on test basis and wherever required, I have obtained the Management representation about the compliance of laws, rules and regulations etc.

5. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.

For Aashish K. Bhatt & Associates

Practicing Company Secretaries (ICSI Unique Code S2008MH100200)

Aashish K. Bhatt

Proprietor ACS No.: 19639 COP No.: 7023

Place: Mumbai UDIN: A019639E000770125

Date: 10.08.2023 Peer Review Cert. No.: 2959/2023

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE AND OUTGO

I. Conservation of Energy:

Information pursuant to Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 in respect of conservation of energy and technology absorption: (1) The steps taken and impact on conservation of energy and steps taken by the Company for utilizing alternate sources of energy:

The Company considers it as a responsibility to reduce its carbon footprint in all possible areas of operations. As a responsible corporate citizen, the Company is taking all possible measures to achieve efficiency in energy utilization, water utilization, technology induction at all its plants, such as:

(i) Use of LED lights in place of sodium vapour lamps, metal halide lamps and florescent lamps on the plant sheds, street lights and in Admin building is continuously resulting in saving in consumption of power.

(ii) Installation of the new pipe cutting machines resulted in reduction of cost of blade consumption as well as power consumption and increased the productivity.

(iii) The new screw compressor is economical and power saving machine. Similarly, the High- Pressure Ait booster installed at the plants are also resulting into reduction in electrical consumption.

(iv) The Company is using Natural Gas in place of LPG at Tarapur Plant leading to following benefits:

(a) Overcoming of problems related to liquid vaporization and fire hazards.

(b) Optimum utilization of Storage space as space required for Natural Gas is less as compared to LPG yard as per CCOE Norms.

(v) The Company is using thermal energy by use of alternate fuels, improvements in fuel burners, minimizing heat losses by improved insulation, etc.

(vi) The Company is using closed loop liquid to Air Heat Exchangers instead of cooling towers for heat dissipation.

(vii) The company is using High Density Poly Ethylene and FRP (Fibre Glass Reinforced Plastic) pipe lines which reduces consumption of energy.

(viii) The Company uses the waste energy in terms of air pressure being released at the end of Pneumatic Leak Testing, to fill the cylinders under test with this Hydraulic Booster compressor.

(ix) Use of VF drive and programmable logic controls for paint booth suction blower for cyclic speed swings, thereby reducing power consumption per cylinder.

ANNEXURE III

II. Impact of measures on reduction of energy consumption and consequent impact on the cost of production of goods:

The Company continues to draw to benefits in the area of energy conservation through its wind power projects. The Company had undertaken Wind farm projects at Kandla in the state of Gujarat and Satara in the state of Maharashtra, the brief details of which are given in the following table:

Place

of

Installation

No. of Windmills installed Energy

Generation

Capa

city

Investment ( in Lakhs) Energy Generated during the year Energy

Generated

during

previous

year

Kandla,

Gujarat

1 1.650

MW

1,125.00 17,93,742

units

1,831,898

units

Satara,

Mahara

shtra*

3* 3 x 0.225 MW = 0.675 MW 349.14 Sold

during the year

505,655

units

*The Company has sold the Windmill, due to low generation of power and maintenance cost.

(a) The wind farm projects as mentioned in the preceding parts have been undertaken in the states of Gujarat and Maharashtra, where the Company is having its own manufacturing facilities. Considering the present power policy of Governments, the Company has directly benefited in terms of captive consumption of energy generated by aforesaid wind farm and also from the sale of power generated from these wind mills.

(b) At Satara, the energy generated is sold to Maharashtra State Electricity Board as per the Governments policy.

III. Details of energy consumption are given below. These details cover the operations of the Companys factories at Tarapur, Gandhidham and KASEZ

Particulars

Current

Year

Previous

Year

A) Power and Fuel consumption:

a) Electricity purchased

Units (kwh in Lakhs)

224.82 282.10

Total Amount ( in Lakhs)

2045.89 2274.28

Rate per Unit (Rs.)

9.10 8.06

b) Oxygen purchased

Units (Cu.M. in Lakhs)

7.82 10.25

Total Amount ( in Lakhs)

102.23 172.96

Rate per Cu.M. (Rs.)

13.07 16.88

c) Natural Gas

Units (Cu.M. in Lakhs)

15.27 17.79

Total Amount ( in Lakhs)

999.66 952.20

Rate per Cu.M. (Rs.)

65.48 53.70

d) LPG purchased

Units (Kg. in Lakhs)

22.13 33.29

Total Amount ( in Lakhs)

1499.20 1851.44

Rate per Kg. (Rs.)

67.73 55.62

B) Consumption per unit of production:

i. Electricity (kwh / MT)

570.32 504.57

ii. Oxygen (Cu.M / MT)

19.85 18.33

iii. Natural Gas (Ltr. / MT)

38.73 31.72

iv. LPG (Kg. / MT)

56.15 59.54

The Capital investment on energy conservation equipments:

The Company has invested 2,289.64 Lakhs on conservation equipments during the FY2022-23.

Technology Absorption, Adaptation and Innovation:

Innovation is one of the key factors enabling EKC to achieve and maintain the Number One position in the area of high-pressure gas cylinders manufacturing. This, aided by the infusion of latest technology, proper training of manpower to handle latest equipment and processes, ensures prompt reciprocation to customer requirement to their satisfaction. This has further enabled the company to meet the requirements of Aerospace sector, Defence sector to entire satisfaction of end user.

I. Technology Absorption

Benefits derived as a result of the above efforts e.g.

product Improvement, cost reduction, product

development, imports substitution, etc. and

In case imported technology (imported during last five years

reckoned from the beginning of the financial year).

(a) Complete process was developed to manufacture newer models of Jumbo cylinders from High Alloy High Strength Steel pipes, without any technical collaboration or help from other company. This major step has made EKC the only manufacturer in India to make these High Alloy High Strength Jumbo Cylinders from tubes. It has opened up new markets which were hitherto inaccessible. It has also ensured managements support to Make in India initiative of the government.

(b) Use of latest PLC version with modified logic on Internal Shot Blasting Machine has helped us to reduce cycle time and increase the productivity.

(c) Company is using Open Type Bus Bars of EOT Crane with Safe Duct Closed Type Bus Bars to improvise on safety requirements.

(d) The Company is using pressure transmitter on air leakage test and cyclic testing machine, to eliminate the risk of increasing pressure in the system.

(e) Special Purpose pipe cutting machine has been developed, having capacity of cutting two pipes at a time. This has resulted in increased productivity.

(f) Special purpose HST line has been developed to process all sizes and special (Larger Dia. and Water Capacity) cylinders.

(g) Use of Electric Load & Fuel Consumption reduced, due to installation of new spinning machines for size (dia 200-267) of water capacity (24.0 ltr to 80.0 ltr), resulted following reduction in electricity & fuel:

Reduction

Old Spinning Machine New Spinning Machine

Electric load

175 KW 80 KW

Fuel

Consumption

1.11 m3 per operation 0.5 m3 per operation

KWH

5.70 units per operation 2.60 units per operation

(h) Use of new cutting oil for pipe cutting/neck cutting & drilling machines, resulted in increase of blade life by 35%.

(i) In place of manual operation for cascade high pressure S.S.tube bending, the Company is using new hydraulic type blender to increase productivity.

(j) Cascade development: Increased cylinder water capacity 75.0 ltrs to 150.0 Ltrs, resulted into reduction of nos. of cylinders & nos. of fittings and reduction in cost.

Reduction

Old Cascade with 75.0 Ltrs cylinder New Cascade with 150.0 Ltrs cylinder

No. of cylinders

60 nos. 30 nos.

(k) Installation of technology powder coating line, the Company is benefited as under:

• Reduction in power consumption - Single coat is applied on shot blasted out side surface, no need of primer coating & additional paint accessories. Actual connected electricity load for painting line as 45 KW & power coating 34 KW.

• Powder recovery is 99.5% in comparison with liquid painting recovery, which was 60%.

(l) Installation of latest technology compact 33 KV Ring main unit, instead of vacuum circuit breaker. This is highly safe in high tension circuit.

(m) New digital computerized HST (Hydro Stretch Testing) machines are installed, which is generate computerized automatic test reports, instead of manual written report.

II. Technology Adaptation

We are participating wholeheartedly in Governments initiative of Make in India. Hitherto we have been importing certain components, as they were not manufactured in India. Now, some Company have come forward to manufacture these components in India and we are in process of application testing partners in that program for our customers.

III. Innovation

Innovation is a way of life at EKC. People at various levels in various departments contribute their ideas to keep the company at the leading edge.

(a) Cylinder models are developed to meet varying needs of different overseas standards which are much stringent than the standards which we operated till now.

(b) Company has developed various Tube Trailers for storage and transportation of Bio-Methane gas and developed Ultra Large Cylinder for Hydrogen, working at 300 Bar for a crucial project of Indian Space Research Organization (ISRO).

(c) Company has also designed Very Large Capacity storage complex for gases to be stored at very high pressures which was not done in the country till recent times.

IV. Foreign Exchange Earnings and Outgo

Total foreign exchange used and earned:

( in Lakhs)

Particulars

Current Year Previous Year

Foreign Exchange used

39,208.71 47,183.72

Foreign Exchange earned

2,386.24 6,279.02

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORTING

SECTION A: GENERAL DISCLOSURES

1 Corporate Identity Number (CIN) of the Company

L29200MH1978PLC020434

2 Name of the Company

Everest Kanto Cylinder Limited

3 Year of Incorporation

1978

4 Registered Office address

204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point, Mumbai - 400 021.

5 Corporate Address

Same as registered office address

6 Website

www.everestkanto.com

7 E-mail id

investors@ekc.in

8 Telephone

022-4926 8300

9 Financial Year reported

April 1,2022 to March 31,2023

10 Paid up Capital

224415364

11 Name of the Stock Exchanges where shares are Listed

BSE Limited

12 Name and Contact details of person who may be contacted in case if any query on BRSR

National Stock Exchange of India Ltd
Pushkar Khurana, Chairman Pushkar@ekcuae.com
Puneet Khurana, Managing Director Puneet@everestkanto.com

13 Reporting Boundary

Standalone basis

II. Products/services

14. Details of business activities (accounting for 90% of the Turnover):

Sr. No. Description of Main Activity

Description of Business Activity % of Turnover of the entity

1 Manufacturing

Metal and metal products 95%

15. Products / Services sold by the entity (accounting for 90% of the entitys Turnover):

Sr. No. Product/Service

NIC Code % of total Turnover contributed

1 Metal and metal products

2512 95%

III. Operations

16. Number of locations where plants and/or operations/offices of the entity are situated:

Location

Number of plants Number of offices Number of Warehouses Total

National

2 1 2 5

International

NA NA NA NA

17. Markets served by the entity: a. Number of locations

Locations

Number

National (No. of States)

All

International (No. of Countries)

NA

b. What is the contribution of exports as a percentage of the total turnover of the entity Rs. 3%

c. A brief on types of customers

Everest Kanto Cylinder Limited, headquartered in Mumbai, is in the business of manufacturing and selling wide range of CNG Steel, Medical Application, Industrial Gas, Fire Extinguisher, Hydrogen, Aluminium, Jumbo cylinders. The Company caters to a wide range of customers, including City Gas Distribution Companies, CNG Vehicle Manufacturers etc.

IV. Employees

18. Details as at the end of Financial Year:

a. Employees and workers (including differently abled):

S. No. Particulars

Total(A)

Male

Female

No. (B) % (B / A) No. (C) % (C / A)

EMPLOYEES

1. Permanent (D)

290 280 97% 10 3%

2. Other than Permanent (E)

- - - - -

3. Total employees (D + E)

290 280 97% 10 3%

WORKERS

4. Permanent (F)

323 323 100% - 0%

5. Other than Permanent (G)

16 16 100% - 0%

6. Total workers (F + G)

339 339 100% - 0%

b. Differently abled Employees and workers:

S. No. Particulars

Total(A)

Male

Female

No. (B) % (B / A) No. (C) % (C / A)

DIFFERENTLY ABLED EMPLOYEES

1. Permanent (D)

1 1 100% - 0%

2. Other than Permanent (E)

- - 0% - 0%

3. Total differently abled employees (D + E)

1 1 100% - 0%

DIFFERENTLY ABLED WORKERS

4. Permanent (F)

- - 0% - 0%

5. Other than permanent (G)

- - 0% - 0%

6. Total differently abled workers (F + G)

- - 0% - 0%

19. Participation / Inclusion / Representation of women:

Particulars

Total(A)

No. and percentage of Females

No. (B) % (B / A)

Board of Directors

6 2 33%

Key Management Personnel

1 - 0%

20. Turnover rate for permanent employees and workers:

(Disclose trends for the past 3 years)

Particulars

FY 2022-23

FY 2021-22

FY 2020-21

Male Female Total Male Female Total Male Female Total

Permanent Employees

4.34% 17% 4.34% 7.11% 0% 7.11% 2.48% 0% 2.48%

Permanent Workers

9.26% 0% 9.26% 4.87% 0% 4.87% 4.17% 0% 4.17%

V. Holding, Subsidiary and Associate Companies (including joint ventures) 21. Names of holding / subsidiary / associate companies / joint ventures

Sr. No. Name of the holding / subsidies / associate companies / joint ventures (A)

Indicate whether holding / Subsidiary / Associate / Joint Venture

% of shares held by listed entity

Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity Rs. (Yes/No)

1 EKC International FZE

Subsidiary 100% NA

2 EKC Industries (Thailand) Company (upto 20th Dec. 2022)

Subsidiary 100% NA

3 Next Gen Cylinder Private Limited

Subsidiary 100% NA

4 Calcutta Compressions & Liquefactions Engineering Ltd

Subsidiary 100% NA

5 EKC Hungary Kft.

Step down Subsidiary 100% NA

6 EKC Europe GmbH

Step down Subsidiary 100% NA

7 CP Industries Holding Inc.

Step down Subsidiary 100% NA

8 EKC Europe Zrt

Joint Venture 80% NA

9 EKC Egypt (S.A.E.) (w.e.f. 13 November 2022)

Joint Venture 80% NA

VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No)

Yes

(ii) Turnover (in Rs. Crore)

789.65

(iii) Net worth (in Rs. Crore)

658.81

VII. Transparency and Disclosures Compliances

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

Stakeholder group from whom complaint is received

Grievance Redressal Mechanism in Place (Yes/No)(If Yes, then provide web-link for grievance redress policy)

FY 2022-23

FY 2021-22

Number of complaints filed during the year Number of complaints pending resolution at close of the year Remarks Number of complaints filed during the year Number of complaints pending resolution at close of the year Remarks

Communities Investors (other than shareholders) Shareholders Employees and workers Customers Value Chain Partners Other (violation of code of business conduct and ethics)

Yes, EKC Limited has a grievance redressal mechanism in place for all of its stakeholders. The processes are set internally and communicated to the stakeholders.

There have been no complaints or grievances received under any of the principles of NGBRC.

24. Overview of the entitys 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.

Sr. No. Material issue identified

Indicate whether risk or opportunity (R/O) Rationale for identifying the risk / opportunity In case of risk, approach to adapt or mitigate Financial implications of the risk or opportunity (Indicate positive or negative implications)

1 GHG Emissions

Risk With an increase in the manufacturing capacity - to keep up with the production demand, the GHG emissions will go up. Using new technology for efficient system to reduce GHGE missions. Negative - To set up improved and efficient systems and processes to reduce the GHG Emissions.

2 Water Management

Risk Water being a finite resource will pose a risk to the operations of our business. Reduction in raw water usage in manufacturing. Neutral - No financial implication is foreseen in the near future. We are taking efforts to ensure efficient water management.

3 Energy Management

Opportunity Processes and Systems are in place to ensure maximum energy efficiency and this will be continuously improved. EKC has Solar panels, LEDs, uses PNG and LPG as fuel and natural lighting to manage energy efficiently. Positive - Any cost put for improving the energy management system will fetch positive outcomes and reduced cost in the long run.

4 CSR

Opportunity Need Assessment done prior to project execution gives us the voice and stance of the community along with their consent to operate. EKC has pioneered on this front. Positive - The benefits our CSR endeavours bring to the community generates good will and enhances our reputation thereby having long term financial benefits.

5 Human Rights

Risk Changing regulations around human rights pose as a challenge We put in substantial efforts to ensure that no human right violations are ensured in the entire line of our business. Negative - Any violation can lead to reputation risk for the organization.

6 Employee Health and Safety

Risk This can lead to decreased productivity. Many efforts and initiatives have been put in place to ensure employee health and safety. Neutral - Any cost put towards employee health and safety will yield positive results in the long term.

7 Governance

Opportunity To build upon our organizational strategy for championing success. Strong leadership and our resilient execution teams. Positive - In transforming our business and levelling it up.

8 Consumer Welfare

Opportunity To distinguish ourselves as market leaders and most preferred brand EKC has established strong market connects and build legacy brands that ensure consumer welfare is ensured. Positive - Goodwill amongst consumers will convert into product sales.

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

The National Guidelines for Responsible Business Conduct (NGRBC) as prescribed by the Ministry of Corporate Affairs advocates nine principles referred as P1-P9 as given below:

Principle 1 Businesses should conduct and govern themselves with integrity in a manner that is ethical, transparent and accountable. Principle 2 Businesses should provide goods and services in a manner that is sustainable and safe.

Principle 3 Businesses should respect and promote the well-being of all employees, including those in their value chains.

Principle 4 Businesses should respect the interests of and be responsive towards all its stakeholders.

Principle 5 Businesses should respect and promote human rights.

Principle 6 Businesses should respect, protect, and make efforts to restore the environment.

Principle 7 Businesses when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.

Principle 8 Businesses should promote inclusive growth and equitable development.

Principle 9 Businesses should engage with and provide value to their consumers in a responsible manner.

Disclosure

Questions

P

1

P

2

P

3

P

4

P

5

P

6

P

7

P

8

P

9

Policy and management processes

1. a. Whether your entitys policy / policies cover each principle and its core elements of the NGRBCs. (Yes / No)

Yes Yes Yes Yes Yes Yes Yes Yes Yes

b. Has the policy been approved by the BoardRs. (Yes / No)

Yes Yes Yes Yes Yes Yes Yes Yes Yes

c. Web Link of the Policies, if available.

https://everestkanto.com/investors/policies/

2. Whether the entity has translated the policy into procedures. (Yes / No)

Yes Yes Yes Yes Yes Yes Yes Yes Yes

3. Do the enlisted policies extend to your value chain partnersRs. (Yes / No)

Yes Yes Yes Yes Yes Yes Yes Yes Yes

4. Name of the national and international codes / certifications / labels / standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by yourentity and mapped to each principle.

ISO 9001:2015 BIS IATF 16949 First Edition

5. Specific commitments, goals and targets set by the entity with defined timelines, if any.

a) To reduce water consumption by 10% by 2025, considering baseline of 2022.

b) To reduce carbon emissions by 35% by 2030 considering baseline of 2022 (Scope 1&2).

c) To dispose 30% of hazardous waste through co-processing by 2030.

6. Performance of the entity against the specific commitments, goals and targets along-with reasons in case the same are not met.

The Company has set environment targets in FY2022-23, hence the performance against set target will not be applicable for this reporting period.

Governance, leadership and oversight

7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements.

Directors Message at the beginning of this Business Responsibility and Sustainability Report.

8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies).

Name: Mr. Puneet Khurana Designation: Managing Director DIN : 00004074

9. Does the entity have a specified Committee of the Board / Director responsible for decision making on sustainability related issues Rs. (Yes / No). If yes, provide details.

Yes, Mr. Puneet Khurana, Managing Director, oversees the Business Responsibility and Sustainability initiatives of the Company.

0. Details of Review of NGRBCs by the Company:

Subject for Review

Indicate whether review was undertaken by Director/Committee of the Board/Any other Committee

Frequency (Annually / Half yearly / Quarterly / Any other - please specify)

p

1

p

2

p

3

p

4

p

5

p

6

p

7

p

8

p

9

Frequency

p

1

p

2

p

3

p

4

p

5

p

6

p

7

p

8

p

9

p

1

p

2

p

3

p

4

p

5

p

6

p

7

p

8

p

9

Performance against above policies and follow up action. Yes Yes Yes Yes Yes

Yes

Yes

Yes

Yes

Periodically / need based basis

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

Yes

Yes

Yes

Yes

Ongoing basis

11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency Rs. (Yes/No).

If yes, provide name of the agency.

P 1

P 2

P 3

P 4

P 5 P 6

P 7

P 8 P 9

No, the Company internally reviews the working of the above-mentioned policies.

12. If answer to question (1) above is "No" i.e. not all Principles are covered by a policy, reasons to be stated:

Questions

P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9

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)

- - - - - - - - -

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

- - - - - - - - -

It is planned to be done in the next financial year (Yes / No)

- - - - - - - - -

Any other reason (please specify)

- - - - - - - - -

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as "Essential" and "Leadership". While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.

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

Essential Indicators

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

Segment

Total number of training and awareness programmes held Topics / principles covered under the training and its impact % age of persons in respective category covered by the awareness programmes

Board of Directors

5 Environment, Business Operations, Strategic Planning, Forecasting 83%

Key Managerial Personnel

7 Environment, Business Operations, Strategic Planning, Forecasting 100%

Employees other than BoD and KMPs

5 Time Management, Safety Management 75%

Workers

5 Safety Management, Skill Development 80%

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 entitys website:

Monetary

NGRBC

Principle

Name of the

regulatory / enforcement agencies / judicial institutions

Amount (In INR) Brief of the Case Has an appeal been preferred Rs. (Yes/No)

Penalty/ Fine

Nil NA Nil NA NA

Settlement

Nil NA Nil NA NA

Compounding fee

Nil NA Nil NA NA

Non-Monetary

NGRBC

Principle

Name of the

regulatory / enforcement agencies / judicial institutions

Brief of the Case Has an appeal been preferred Rs. (Yes/No)

Imprisonment

Nil NA NA NA

Punishment

Nil NA NA NA

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

NA

NA

4. Does the entity have an anti-corruption or anti-bribery policy Rs. If yes, provide details in brief and if available, provide a web- link to the policy.

Yes, the company has a Code of Conduct for Directors and Senior Management that entails ethical conduct. The Company also has laid down an Ethics policy to ensure ethical conduct by employees, supply chain & business partners.

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

FY 2022-23 FY 2021-22

Directors

NIL NIL

KMPs

NIL NIL

Employees

NIL NIL

Workers

NIL NIL

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

FY 2022-23

FY 2021-22

Number Remarks Number Remarks

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

Nil Nil Nil Nil

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

Nil Nil Nil Nil

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

Yes, the company has a Code of Conduct for Directors and Senior Management that entails ethical conduct. The Company also has laid down an Ethics policy to ensure ethical conduct by employees, supply chain & business partners.

Not applicable.

Leadership Indicators

1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

Total number of awareness programmes held

Topics / principles covered under the training % age of value chain partners covered (by value of business done with such partners) under the awareness programmes

Nil

Nil Nil

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board Rs. (Yes/No) If Yes, provide details of the same.

Yes, as per Companys Code of Conduct, all its Personnel (Members of the Board) to refrain from engaging in any activity or having a personal interest that presents a conflict of interest. Further, the Company outlines that Personnel of the Company shall not exploit any information discovered through their position in the Company, for their own personal gain.

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.

Environmental and Social impact assessment is one of the key inputs for the new product development/process changes. Capital expenditure and R&D spends incurred by the Company embeds cost incurred to mitigate environmental & social hazards. These are inseparable cost of the projects and hence separately identifying such cost is not feasible. Increasing share of renewable energy in overall energy portfolio is a flagship initiative which demonstrated our commitment towards sourcing clean energy and transition to low carbon operation having a direct impact on the environment.

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

b. If yes, what percentage of inputs were sourced sustainably Rs.

EKC manufactures seamless steel cylinders for which seamless tubes are required in specific size and specification which currently are imported from China as Indian Steel Companies are still not providing material as per EKCs specific requirement. 16% of the raw material spend was sourced locally (within India).

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) (b) E-waste (c) Hazardous waste and (d) other waste.

By virtue of being a cylinder industry, our products, in general, get completely utilized once it reaches consumers. However, we are focused on reducing the generation of damaged and defective materials on the inventory management front. These stocks are collected back, reprocessed, and utilized to the maximum extent possible. EKC does not recycle the products manufactured. The non- hazardous scrap generated by the Company is sold for further recycling. (a) Plastics (including packaging): Not applicable(b) E-waste: Not applicable(c) Hazardous waste: Not applicable(d) other waste: Not applicable.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entitys activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards Rs. If not, provide steps taken to address the same.

Not applicable.

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)Rs. If yes, provide details in the following format Rs.

NIC

Code

Name of Product / Service % of total Turnover contributed Boundary for which the Life Cycle Perspective / Assessment was conducted Whether conducted by independent external agency (Yes/No) Results communicated in public domain (Yes/No)

If yes, provide the web-link

2512

Metal and metal products (Cylinders) 95% Seamless Tube to Cylinder Conducted at in-house facility in presence of external agencies No

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same.

Name of Product / Service

Description of the risk / concern Action Taken

Not applicable

3. Percentage of recycled or reused input material to total material (by value) used in Products (for manufacturing industry) or providing services (for service industry).

Indicate input material

Recycled or re-used input material to total material

FY 2022-23 FY 2021-22

Not applicable

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per the following format:

FY 2022-23

FY 2021-22

Re-Used Recycled Safely

Disposed

Re-Used Recycled Safely

Disposed

Plastics (including packaging) E-waste

Hazardous waste Other waste

Not applicable

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Indicate product category

Reclaimed products and their packaging materials as % of total products sold in respective category

Not applicable

PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their value chains.

Essential Indicators

1. a. Details of measures for the well-being of employees:

% of employees covered by

Category

Total(A)

Health insurance

Accident insurance

Maternity benefits

Paternity Benefits

Day Care facilities

Number

(B)

% (B / A) Number (C ) % (C / A) Number

(D)

% (D / A) Number

(E)

% (E / A) Number

(F)

% (F / A)

Permanent employees

Male

280 - - 280 100% - - - - - -

Female

10 - - 10 100% 10 100% - - - -

Total

290 - - 290 100% 10 3% - - - -

Other than Permanent employees

Male

- - - - - - - - - - -

Female

- - - - - - - - - - -

Total

- - - - - - - - - - -

 

b. Details of measures for the well-being of workers:

Category

% of workers covered by

Total(A)

Health insurance

Accident insurance

Maternity benefits

Paternity Benefits

Day Care facilities

Number

(B)

% (B / A) Number (C ) % (C / A) Number

(D)

% (D / A) Number

(E)

% (E / A) Number

(F)

% (F / A)

Permanent employees

Male

323 - - 323 100% - - - - - -

Female

- - - - - - - - - - -

Total

323 - - 323 100% - - - - - -

Other than Permanent employees

Male

16 - - 16 100% - - - - - -

Female

- - - - - - - - - - -

Total

16 - - 16 100% - - - - - -

2. Details of retirement benefits, for Current FY and Previous Financial Year:

Benefits

FY 2022-23

FY 2021-22

No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.) No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.)

PF

100% 100% Yes 100% 100% Yes

Gratuity

100% 100% Yes 100% 100% Yes

ESI

100% 100% Yes 100% 100% Yes

3. Accessibility of workplaces: Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016Rs. If not, whether any steps are being taken by the entity in this regard.

Yes.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016Rs. If so, provide a web-link to the policy.

We strongly believe in respecting the individuality of our employees and are committed to creating a healthy, safe, and secure work environment that enables employees to work without fear of prejudice, gender bias, and sexual harassment. We ensure that no employee is at a disadvantage based on disability and we aim to provide equal opportunities for all the employees.

5. Return to work and Retention rates of permanent employees and workers that took parental leave.

Gender

Permanent employees

Permanent workers

Return to work rate Retention rate Return to work rate Retention rate

Male

100% 100% 100% 100%

Female

100% 100% 100% 100%

Total

100% 100% 100% 100%

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker Rs. If yes, give details of the mechanism in brief.

Category

Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers

Yes. All employees, whether permanent or contractual can get in touch through a designated point of-contact and a unique e-mail ID to report any grievances. We have a de signated committee and Statement of Purpose (SOP) in place to address grievances in an efficient and effective manner.

Other than Permanent Workers

Permanent Employees

Other than Permanent Employees

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

Category

FY 2022-23

FY 2021-22

Total

employees / workers in respective category (A)

No. of

employees / workers in respective category, who are part of association(s) or Union (B)

% (B / A) Total

employees / workers in respective category (c)

No. of

employees / workers in respective category, who are part of association(s) or Union (B)

% (D / C)

Total Permanent Employees

- Male

280 8 3% 277 8 3%

- Female

10 - 0% 10 - 0%

Total Permanent Workers

- Male

322 69 21% 345 77 22%

- Female

- - 0% - - 0%

8. Details of training given to employees and workers:

Category

FY 2022-23

FY 2021-22

Total (A)

On Health & safety measures

On Skill up gradation

Total (A)

On Health & safety measures

On Skill up gradation

No.

(B)

%

(B / A)

No.

(C )

%

(C / A)

No.

(B)

%

(B / A)

No.

(C )

%

(C / A)

Employees

Male

281 281 100% 281 100% 277 277 100% 277 100%

Female

10 10 100% 10 100% 10 10 100% 10 100%

Total

291 291 100% 291 100% 287 287 100% 287 100%

Workers

Male

338 338 100% 338 100% 345 345 100% 345 100%

Female

- - 0% - 0% - - 0% - 0%

Total

338 338 100% 338 100% 345 345 100% 345 100%

9. Details of performance and career development reviews of employees and worker:

Category

FY 2022-23

FY 2021-22

Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)

Employees

Male

281 281 100% 277 277 100%

Female

10 10 100% 10 10 100%

Total

291 291 100% 287 287 100%

Workers

Male

338 338 100% 345 345 100%

Female

- - 0% - - 0%

Total

338 338 100% 345 345 100%

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity Rs. (Yes / No). If yes, the coverage such system Rs.

The Company has complete focus on health and well-being of its employees. Awareness sessions are conducted on safety related aspects for the employees. Training related to Hazard Analysis Critical Control Point (HACCP) and Total Productive Maintenance are also provided. The Company is focused on both, the physical and mental well-being of its employees and has organized various programs and discussions with well-being experts and medical practitioners. Occupational Health and Safety management system has been implemented at EKC. The system covers all employees, workers, operational locations and townships. Operational / Product Safety related trainings and stakeholder engagement exercises are undertaken with local communities and customers as well. The management system is reviewed internally every year, and it is also externally certified at operating units. The efficacy of the management system is maintained and improved as part of the company-wide risk management and control process, and it is aligned with our safety principle.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity Rs.

We have implemented the process to identify the work-related Hazard Identification and Risk Assessment (HIRA) on a daily routine basis. The work related hazards are also identified and evaluated as per procedure for Identification and Evaluation of Environmental Aspect and Occupational Health & Safety hazards and records of the same are updated in the Aspect and hazard evaluation register. We also identify workplace hazards through:

• Daily Safety Inspection by plant team, safety personnel and night duty officers;

• Weekly safety inspection by senior officials;

• Daily safety toolbox talk;

• Weekly shop floor safety meeting with workmen;

• Routine identification of unsafe conditions and unsafe acts;

• Capturing and reporting of near miss incident from shop floor personnel;

• Work permits by plant and safety personnel;

• Through Safety Observation Tour (SOT) at plant.

c. Whether you have processes for workers to report the work related hazards and to remove themselves from such risks. (Y/N)

Yes, we have well defined systems and processes for workers to report work-related hazards and remove themselves from such risks. The methods used by different plants include Near miss/unsafe condition reporting, shop floor safety meeting, safety committee meeting, daily Safety Toolbox Talk, observation reporting system through "Safety Portal", reporting of near miss incident from shop floor workmen, and interaction with workers during daily plant inspection and internal mail and phone communication. The workers can report unsafe conditions and near misses through area-in charge and the hazards are evaluated through various methods such as Hazard Identification and Risk Assessment (HIRA).

d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services Rs. (Yes/ No)

Yes, all the employees/workers have access to non-occupational medical and healthcare services. All our plants have either dedicated occupational health centres (OHC) or medical consultants, visiting specialists doctors, and trained paramedic staff to ensure uninterrupted emergency medical services round the clock.

11. Details of safety related incidents, in the following format:

Safety Incident/Number

Category FY 2022-23 FY 2021-22

Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked)

Employees 0.97 5.61
Workers 5.30 13.65

Total record able work-related injuries

Employees Zero Zero
Workers Zero Zero

No. of fatalities

Employees Zero Zero
Workers Zero Zero

High consequence work-related injury or ill-health (excluding fatalities)

Employees Zero Zero
Workers Zero Zero

12. Describe the measures taken by the entity to ensure a safe and healthy work place.

The company is committed to produce highest quality goods without sacrificing on safety and environmental needs. All work-related risks & their causes in the work environment are identified. Personal protective equipment & awareness trainings are provided to employees and workers. Workplace inspection & hazard identifications are conducted by EHS & Site management. Safety & Environmental audits of plants are done by competent persons/authorities under the Factories Act to ensure compliance. Central Safety Committee and Emergency Response Team like First Aider & Fire Fighter teams are also formed to ensure safety processes and for risk assessment.

13. Number of Complaints on the following made by employees and workers:

FY 2022-23

FY 2021-22

Filed during the year Pending resolution at the end of year Remarks Filed during the year Pending resolution at the end of year Remarks

Working Conditions

3

Resolved

8

Resolved

Health & Safety

Safety Suggestion Box is maintained at all our plant locations wherein employees and workers can report their observations / suggestions, which require attention from a safety point of view. These suggestions are evaluated internally and considered for corrective actions.

14. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)

Health and safety practices

100%

Working Conditions

100%

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions.

We have introduced advanced technology interventions to prevent accidents and are working on further improvements to address safety-related incidents in the plants. We have a cross-functional investigation team who are responsible for investigating the accidents and submitting detailed reports in a timely manner regarding the causes. Safety alerts are sent by the safety team for discussion in Tool Box and shop floor safety meetings. All incidents are investigated for identification of gaps and recommendations for improving the system, with the objective of learning and to avoid repetitive shortcomings. Recommendations are implemented in time bound manner. Dissemination of information and learning is done to prevent recurrence. To ensure effectiveness of all the components of the safety system and activities, various internal and external audits are carried out as per details provided in description of Safety Management System. Strict monitoring of the audit recommendations is carried out at various levels.

Leadership Indicators

1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N).

Yes, the Company extends a compensatory package to all its employees including workers in event of accidental death.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain partners.

The Company requires its value chain partners to abide by the principles of the Companys Supplier Code of Conduct and implement responsible business conduct principles in its operating practices.

3. Provide the number of employees / workers having suffered high consequence work- related injury / ill-health / fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment:

Total no. of affected employees / workers

No. of employees/workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment

FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22

Employees

- - - -

Workers

- - - -

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or termination of employment Rs. (Yes/ No)

The Company periodically provides skill-up gradation training programs to all its employees during their employment. The training programs cater to the specific requirements of the cadre and relevant function areas which further enable the employees to pursue employment post retirement or termination, based on the acquired skill set.

5. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners) that were assessed

Health and safety practices

100%

Working Conditions

100%

As per the Companys Code of Conduct, the value chain partners are expected to adhere to the principles of Health and safety practices, working conditions as per extant regulations. However, no independent assessment is carried out.

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and safety practices and working conditions of value chain partners.

Not applicable.

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

1 Describe the processes for identifying key stakeholder groups of the entity.

As a responsible Company focused on driving growth through the strong foundation of stakeholder relationships, Everest Kanto Cylinder Limited engages with its prioritised group of stakeholders, identifies the key material issues and manages their expectations. The stakeholder groups are identified as part of the stakeholder engagement mechanism, built on the principles of inclusivity, accountability, and responsibility. As part of the stakeholder engagement and materiality assessment exercise conducted in FY 202223, the Company identified key stakeholder groups based on those groups who are impacted as well those who have a major influence on the business decisions. The key internal and external stakeholder groups identified by the Company as part of the engagement mechanism are - Investors/shareholder, regulators, suppliers/vendors/third-party manufacturers, Non-Governmental Organisations (NGO), Community, Customer B2B, Employee, Senior leadership.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Stakeholder

Group

Whether identified as Vulnerable & Marginalized Group (Yes/No)

Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other Frequency of engagement (Annually /

Half yearly / Quarterly / others - please specify)

Purpose and scope of engagement including key topics and concerns raised during such engagement

Investor / Shareholder

No

• Annual / quarterly reports and earning calls.

• Attending investor conferences.

• Issuing specific event based press releases.

• Investor presentations.

Quarterly / need-based Investors/ Shareholders form an integral part of the stakeholder group, influencing the decisions of the Company.

The key areas of interest for the investors/ shareholders are:

• Corporate governance.

• ESG disclosures.

• Regulatory compliance.

• Responsible supply chain Management.

• Product responsibility.

• Cost competitiveness.

• Overall Company performance.

Stakeholder

Group

Whether identified as Vulnerable & Marginalized Group (Yes/No)

Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other Frequency of engagement (Annually /

Half yearly / Quarterly / others - please specify)

Purpose and scope of engagement including key topics and concerns raised during such engagement

Regulator

No

• In-person meetings

• E-mail

Need-based Transparent communication with the regulators is critical from the compliance perspective.

The key areas of interests for the regulators are:

• Regulatory compliance

• Community engagement

• De-risk supply chain

Supplier / Vendor/

Third party manufacturer

No

• Vendor meets

• Virtual modes such as e-mail, telephonically

Ongoing Responsible supply chain practices are critically important for ensuring the business continuity in a sustainable manner.

Engagement with suppliers, vendors enable the Company to identify the key material issues impacting the supply chain. The key areas of interest for the suppliers are:

• Timely payments

• Collaboration

NGO

No

• In-person meetings

• Virtual modes such

as e-mail, telephonically

Ongoing As a responsible Company, engaging with NGOs facilitate the streamlining of the CSR activities undertaken in partnership.

The key areas of interest for NGO are:

• Employee volunteering.

• Agile management process.

Community

Yes

• In-person meetings

• Engagement through NGO partners

Ongoing Community development programs initiated by the Companys CSR activities enables driving a positive impact on the community members.

The key areas of interest for community are:

• Community development programs with a focus on health, education, sanitation and infrastructure development.

Customer

B2B

No

• In-person meetings

• E-mail

• Customer feedback sessions

Ongoing Customers form a vital part of the Companys stakeholder engagement group to ensure quality services.

The key areas of interest for Customer B2B are:

• Product quality, access and pricing.

Stakeholder

Group

Whether identified as Vulnerable & Marginalized Group (Yes/No)

Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other

Frequency of engagement (Annually /

Half yearly / Quarterly / others - please specify)

Purpose and scope of engagement including key topics and concerns raised during such engagement

Employee

No

• Employee focused web- portal

• E-mail

• Employee engagement surveys

Ongoing Employee well being and satisfaction is an integral part of the Companys growth model. Employee engagement through various means of communication provides an insight into the key action areas for employee well being and growth.

The key areas of interest for employees are:

• Training, professional growth and development.

• Well-being initiatives.

• Employee recognition.

• Fair remuneration.

• Work-life balance.

Senior

Leadership

No

• In person meetings

• Virtual modes such as e-mail, telephonically

Ongoing Senior leadership are the key drivers of the Companys sustainable value creation strategy. Senior leadership engagement facilitates the interlink age of business and sustainable value creation.

The key areas of interest for senior leadership are:

• Sustainable and resilient business operations.

• R & D and innovation.

• Overall Company performance.

Leadership Indicators

1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.

At EKC, stakeholder engagement mechanism is a key driving force towards strengthening and diversifying the stakeholder relationship, which further facilitates the identification of key material issues impacting the Companys growth. The stakeholder engagement and materiality assessment exercise conducted in FY2022-23 led to the prioritisation of material issues, mapping of the risks relevant to each material topic and development of consequent risk mitigation steps. The primary outcome of the stakeholder engagement exercise resulted in identification and prioritisation of material issues relevant to environment, social, governance and economic aspects. The identified material issues were presented to the highest governing member and the Board for their feedback and guidance on strategising the sustainable growth model of the Company. As part of the Companys efforts to continually engage with internal and external stakeholder groups for identification of key material issues impacting them, the stakeholder engagement exercise undergoes periodic review.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.

Yes, the identification, prioritisation of material issues relevant to the environment, social, economic and governance topics is done in consultation with the stakeholders. The identified issues are then subsequently mapped with relevant risks. As part of the risk management plan, the Company subsequently strategies and develops mitigation action plans for the identified risk. The material issues form the guiding framework for the non financial disclosures of the Company through its Sustainability Report. As per the

relevant national and international guidelines and standards, the Company discloses its management approach, targets/goals and its non-financial performance in the reporting year for each of the identified material topic. Additionally, the identification of material issues enables the company to focus on its key improvement areas and subsequently develop future action plans such as policy development, initiatives implementation among others.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized stakeholder groups.

The community members are identified as vulnerable/marginalized stakeholder group for the Company. As part of the Corporate Social Responsibility (CSR) initiatives, the Company undertakes need assessment to identify and prioritise the focus areas for community development. The Company has undertaken various CSR initiatives on seven focus areas- healthcare, education, rural development, environment conservation, sanitation, drinking water project, disaster relief program. For further details refer the Annual Report and the Companys Annual CSR report.

PRINCIPLE 5 Businesses should respect and promote human rights

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

Category

FY 2022-23

FY2021-22

Total (A) No. employees/ workers covered (B) % (B / A) Total (A) No. employees/ workers covered (B) % (B / A)

Employees

Permanent

290 290 100% 285 285 100%

Other than permanent

1 1 100% 2 2 100%

Total Employees

291 291 100% 287 287 100%

Workers

Permanent

322 322 100% 345 345 100%

Other than permanent

16 16 100% 0 0 0%

Total Employees

338 338 100% 345 345 100%

2. Details of minimum wages paid to employees and workers, in the following format:

Category

FY 2022-23

FY 2021-22

Total (A)

Equal to Minimum Wage

More than Minimum Wage

Total (D)

Equal to Minimum Wage

More than Minimum Wage

No.(B) % (B / A) No.(C) % (C / A) No.(E) % (E/D) No.(F) % (F/D)

Employees

Permanent

Male

280 - 0% 280 100% 275 - 0% 275 100%

Female

10 - 0% 10 100% 10 - 0% 10 100%

Other than permanent

Male

1 - 0% 1 100% 2 - 0% 2 100%

Female

- - 0% - 0% - - 0% - 0%

Workers

Permanent

Male

322 - 0% 322 100% 345 - 0% 345 100%

Female

- - 0% 0 0% - - 0% 0 0%

Other than permanent

Male

16 - 0% 16 100% - - 0% 0 0%

Female

- - 0% 0 0% - - 0% 0 0%

3. Details of remuneration/salary/wages, in the following format:

Male

Female

Number Median remuneration / salary / wages of respective category Number Median remuneration / salary / wages of respective category

Board of Directors (BoD)

4 5,462,500 2 1,085,000

Key Managerial Personnel

1 7,343,945 _

-

Employees other than BoD and KMP

363 351,360 10 768,310

Workers

254 1 92 ,1 8 0 - -

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business Rs. (Yes/No)

Yes, the Company has a team in place under the direct touch initiative to address human rights issues.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.

At EKC, guidance on human rights issues is covered as a part of its Code of Conduct. The Company has a Whistle Blower and Protection Policy that allows and encourages its stakeholders to raise concerns about the violations against the Code of Conduct. Any concerns reported are addressed by the direct touch team.

6. Number of Complaints on the following made by employees and workers:

FY 2022-23

FY 2021-22

Filed during the year Pending resolution at the end of year Remarks Filed during the year Pending resolution at the end of year Remarks

Sexual Harassment Discrimination at workplace Child Labour

Forced Labour / Involuntary

Labour

Wages

Other human rights related issues

No complaints have been received under these categories.

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

The Whistle Blower & Protection policy mentions a clause on confidentiality of complainant/ Protection against victimization. It states that the disclosures of wrongful conduct are submitted on a confidential basis or submitted anonymously. Such disclosures are confidential to the extent possible, convenient with the need to conduct an adequate investigation. The company takes stringent actions against any director, supervisor or employee found to have so violated this clause.

8. Do human rights requirements form part of your business agreements and contracts Rs.(Yes/No)"

Yes, human rights requirements form a part of the Companys business agreements and contracts.

9. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)

Child labour

100%

Forced/involuntary labour

100%

Sexual harassment

100%

Discrimination at workplace

100%

Wages

100%

Others - please specify

100% (Compliance of different statutory provisions pertaining to Wages, Working Conditions, Social Security etc.)

All the locations under the entity are assessed on the above parameters, complying with the requirements of the Shop and Establishments Act for offices and the Factory Inspector audits at plants.

10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 9 above.

Not applicable.

Leadership Indicators

1. Details of a business process being modified / introduced as a result of addressing human rights grievances / complaints.

Not applicable.

2. Details of the scope and coverage of any Human rights due-diligence conducted.

The Company in the reporting period did not undertake any Human Rights due diligence. The Companys revised Human Rights Policy expects all the employees and members of the value chain to abide by its principles. As part of the policy statement, the Company outlines that it will undertake human rights due diligence to identify adverse human rights impact of the business on all relevant stakeholders and correspondingly address, prevent and mitigate through corrective actions.

3. Is the premise / office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016Rs.

Yes, as per the requirements of the Rights of Persons with Disabilities, the Company manufacturing premises and offices have ramps, elevators and infrastructure for differently abled individuals.

4. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners) that were assessed

Sexual Harassment

100%

Discrimination at workplace

100%

Child Labour

100%

Forced Labour/Involuntary Labour

100%

Wages

100%

Others - please specify

100%

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 4 above.

Not applicable.

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment.

Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

Parameter

FY 2022-23 FY2021-22

Total electricity consumption (A)

80,937 1 0 1 , 5 5 9

Total fuel consumption (B)

190,278 262,789

Energy consumption through other sources (C)

-

-

Total energy consumption(A+B+C)

271,215 364,348

Energy intensity per crore rupee of turnover (Total energy consumption / turnover in rupees)

361.02 305.66

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency Rs. (Y/N) If yes, name of the external agency.

We havent carried out assessment / evaluation / assurance by any external agency.

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India Rs. (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

Not applicable.

3. Provide details of the following disclosures related to water, in the following format:

Parameter

FY 2022-23 FY 2021-22

Water withdrawal by source (in kilolitres)"

(i) Surface water

67,862 77,980

(ii) Groundwater

- -

(iii) Third party water

- -

(iv) Seawater / desalinated water

- -

(v) Others

- -

Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)

67,862 77,980

Total volume of water consumption (in kilolitres)

67,862 77,980

Water intensity per crore rupee of turnover (Water consumed / turnover)

90.33 65.42

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an externalagency Rs. (Y/N) If yes, name of the external agency.

We havent carried out assessment / evaluation / assurance by any external agency.

4. Has the entity implemented a mechanism for Zero Liquid Discharge Rs. If yes, provide details of its coverage and implementation.

The Company has implemented a mechanism of Zero Liquid Discharge in 2 manufacturing units where the Company reuses and recycles all the wastewater generated after treatment. All the wastewater is collected and treated in STP / ETPs and treated wastewater is completely recycled or reused as appropriate.

5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter

Please specify unit FY 2022-23 FY 2021-22

Nox

Tonne - -

Sox

Tonne - -

Particulate matter (PM)

Tonne - -

Persistent organic pollutants (POP)

Tonne - -

Volatile organic compounds(VOC)

Tonne - -

Hazardous air pollutants (HAP)

Tonne - -

Others- please specify

Tonne - -

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency Rs. (Y/N) If yes, name of the external agency.

No independent assessment/ evaluation/assurance has been carried out by an external agency.

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

Parameter

Unit FY 2022-23 FY 2021-22

Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)

Metric tonnes of Co2 equivalent 8 1 4 935

Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs,SF6, NF3, if available)

Metric tonnes of Co2 equivalent 35,656 47,290

Total Scope 1 and Scope 2 emissions per crore rupee of turnover

Metric tonnes of CO2 per crore rupee of turnover 48.55 40.46

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency Rs. (Y/N) If yes, name of the external agency.

We havent carried out assessment / evaluation / assurance by any external agency.

7. Does the entity have any project related to reducing Green House Gas emission Rs. If Yes, then provide details.

Aligning emissions management strategy with the global goals of minimizing carbon footprint and mitigating climate change risks, the Company has streamlined its processes to move closer to this common goal. Reducing GHG emissions is not only a business imperative for EKC, but also forms a vital part of its environmental strategy going forward. With the use of Renewable Energy sources, alternate fuel, and energy efficiency efforts, the Company has been able to reduce emissions. The Company is committed to energy conservation and ensure efficient energy usage at all its operational facilities. Energy management forms a vital part of the Companys approach towards sustainable operations. Facilities operate with an aim to reduce energy consumption in the processes which has a direct impact on carbon emissions. Renewable electricity generation is one of the identified focus areas and several investments have been made in this space over the years.

8. Provide details related to waste management by the entity, in the following format:

Parameter

FY 2022-23 FY 2021-22

Plastic waste (A)

- -

E-waste (B)

- -

Bio-medical waste (C)

- -

Construction and demolition waste (D)

- -

Battery waste (E)

- -

Radioactive waste (F)

- -

Other Hazardous waste (G)

2 1

Other Non-hazardous waste generated (H). Please specify, if any.

(Break-up by composition i.e. by materials relevant to the sector)

- -

Total (A+B + C + D + E + F + G + H)

2 1

For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)

Category of waste

(i) Recycled

- -

(ii) Re-used

- -

(iii) Other recovery operations

- -

Total

- -

For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)

Category of waste

(i) Incineration

- -

(ii) Land filling

- -

(iii) Other disposal operations

- -

Total

- -

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency Rs. (Y/N) If yes, name of the external agency.

We havent carried out assessment / evaluation / assurance by any external agency.

9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

By virtue of being a cylinder industry, our products, in general, get completely utilized once it reaches consumers. However, we are focused on reducing the generation of damaged and defective materials on the inventory m a nag e me n t front. These stocks are collected back, reprocessed, and utilized to the maximum extent possible. EKC does not recycle the products manufactured. The non- hazardous scrap generated by the Company is sold for further recycling. (a) Plastics (including packaging): Not applicable(b) E-waste: Not applicable(c) Hazardous waste: Not applicable(d) other waste: Not applicable.

10. If the entity has operations / offices in / around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, bio diversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please specify details in the following format:

S. No.

Location of operations / offices Type of operations Whether the conditions of environmental approval / clearance are being complied with Rs. (Y/N) If no, the reasons thereof and corrective action taken, if any.

Not applicable

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:

Name and brief details of project

EIA Notification No. Date Whether conducted by independent external agency(Yes/ No) Results communicated in public domain (Yes / No) Relevant Web link

No assessment has been done in the current financial year

12. Is the entity compliant with the applicable environmental law / regulations / guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format:

Yes, the company is compliant with the applicable environmental law / regulations / guidelines in India. There have been no incidents of non-compliance from EKCs end related to the environment in FY 2022-23.

Leadership Indicators

1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources, in the following format:

Parameter

FY 2022-23 FY 2021-22

From renewable sources

Total electricity consumption (A)

7,327 8,415

Total fuel consumption (B)

- -

Energy consumption through other sources (C)

- -

Total energy consumed from renewable sources (A+B+C)

7,327 8,4 1 5

From non-renewable sources

Total electricity consumption (D)

80,937 101,559

Total fuel consumption (E)

190,278 262,789

Energy consumption through other sources (F)

- -

Total energy consumed from non-renewable sources (D+E+F)

271,215 364,348

We havent carried out assessment / evaluation / assurance by any external agency. 2. Provide the following details related to water discharged:

Parameter

FY 2022-23 FY 2021-22

Water discharge by destination and level of treatment (in kilolitres)

(i) To Surface water

- No treatment

- -

- With treatment-please specify level of treatment

- -

(ii) To Groundwater

- No treatment

- -

- With treatment-please specify level of treatment

- -

(iii) To Seawater

- No treatment

- -

- With treatment-please specify level of treatment

- -

(iii) To Seawater

- No treatment

- -

- With treatment-please specify level of treatment

- -

(iv) Sent to third- parties

- No treatment

- -

- With treatment-please specify level of treatment

- -

(v) Others

- No treatment

- -

- With treatment-Boiler Blow down and

Softening water is collected at ETP and the

same is treated and used for Cooling system

2,920 2,665

Total water discharged (in kilolitres)

2,920 2,665

We havent carried out assessment / evaluation / assurance by any external agency.

3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):

For each facility / plant located in areas of water stress, provide the following information:

(i) Name of the area

(ii) Nature of operations

(iii) Water withdrawal, consumption and discharge in the following format:

The Company has implemented a mechanism of Zero Liquid Discharge in 2 manufacturing units where the Company reuses and recycles all the wastewater generated after treatment. All the wastewater is collected and treated in STP/ETPs and treated wastewater is completely recycled or reused as appropriate.

We havent carried out assessment / evaluation / assurance by any external agency.

4. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Parameter

Unit FY 2022-23 FY 2021-22

Total Scope 3 emissions

(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs,SF6, NF3, if available)

Metric tonnes of Co2 equivalent 509 479

Total Scope 3 emissions per crore rupee of turnover

0.68 0.4

Note: Indicate if any independent assessment / evaluation / assurance has been carried out by an external agency Rs. (Y/N) If yes, name of the external agency.

We havent carried out assessment / evaluation / assurance by any external agency .

5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities.

Aligning emissions management strategy with the global goals of minimizing carbon footprint and mitigating climate change risks, the Company has streamlined its processes to move closer to this common goal. Reducing GHG emissions is not only a business imperative for EKC, but also forms a vital part of its environmental strategy going forward. With the use of Renewable Energy sources, alternate fuel, and energy efficiency efforts, the Company has been able to reduce emissions. The Company is committed to energy conservation and ensure efficient energy usage at all its operational facilities. Energy management forms a vital part of the Companys approach towards sustainable operations. Facilities operate with an aim to reduce energy consumption in the processes which has a direct impact on carbon emissions. Renewable electricity generation is one of the identified focus areas and several investments have been made in this space over the years.

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as outcome of such initiatives, as per the following format:

Sr. No. Initiative undertaken

Details of the initiative (Web-link, if any, may be provided along with summary) Outcome of the initiative

1 Switch over to LED lights from fluorescent lights

Use of LED lights Saving in Power consumption

2 Installation of new spinning machine

Electric load reduced from 175 KW to 80 KW Reduction in Electric load

3 Installation of new spinning machines

Fuel consumption reduced from 1.11 Cubic meter to per operation to 0.5 cubic meter per operation Reduction in Fuel consumption

4 Installation of new pipe cutting machines

Reduction in Stores items like Blade etc. and increased productivity by 3 times, reducing power consumption Saving in Power consumption and increased productivity

5 Installation of New Pressure Air Booster

New High Pressure Air Booster Saving in Power consumption by 77%

6 New Powder Coating Line

New Powder Coating Line Saving in Power consumption by 24%

7 Garden Area Development

Garden area Development inside and outside factory premises Reduction in pollution

7. Does the entity have a business continuity and disaster management plan Rs. Give details in 100 words / web link.

Emergency plan is prepared at all plants and mock drills are conducted in once in six months. Following are the major components of the emergency plan

• All probable hazards, their place, potential, damaging capacity and areas in case of all accidents, dangerous occurrence, emergencies and disasters happening in or affecting the jurisdiction at any time detailed emergency response for each hazard scenario.

• Emergency response team on site consisting of site main controller, incident controller, fire fighting team, first aiders, communications team, power and utility teams.

• Responsibilities and functions of key members emergency response team and alternates.

• Emergency control centre and minimum infrastructure required in emergency control centre.

• List of Regulatory agencies with names and telephone Numbers.

• List of Telephone numbers of Local Hospitals and telephone numbers.

8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the entity in this regard.

The company does not have any adverse impact on the environment due to its supply chain activities.

9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.

Nil.

PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.

Essential Indicators

1. a. Number of affiliations with trade and industry chambers/ associations.

The Company is a member of 4 trade and industry chambers/associations.

b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is a member of/ affiliated to.

S. No. Name of the trade and industry chambers / associations

Reach of trade and industry chambers / associations (State / National)

1 Bombay Chamber of Commerce and Industry

State

2 All India Industrial Gases Manufacturers Association

National

3 Entrepreneurs Organisation Mumbai

State

4 Federation of Kutch Industries Association

State

2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity, based on adverse orders from regulatory authorities.

Name of authority

Brief of the case Corrective action taken

For the reporting year, there were no cases issued against the Company for issues pertaining to anticompetitive conduct.

Leadership Indicators

1. Details of public policy positions advocated by the entity:

S. No.

Public policy advocated Method resorted for such advocacy Whether information available in public domain Rs. (Yes/No) Frequency of Review by Board (Annually/ Half yearly / Quarterly / Others - please specify) Web Link, if available

Nil

PRINCIPLE 8 Businesses should promote inclusive growth and equitable development.

Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

Name and brief details of project

SIA Notification No. Date of notification Whether conducted by independent external agency (Yes/No) Results communicated in public domain (Yes/No) Relevant Web link

The Company undertakes its CSR initiatives directly and through various implementation agencies in accordance with the applicable laws. Details of CSR initiatives taken by the Company and agencies and impact assessment thereof are provided in the Annexure I to the Directors Report.

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format:

S. No.

Name of Project for which R&R is ongoing State District No. of Project Affected Families (PAFs) % of PAFs covered by R&R Amounts paid to PAFs in the FY (In INR)

The Company does not have any ongoing projects.

3. Describe the mechanisms to receive and redress grievances of the community.

EKCs CSR implementation process has been developed keeping in mind the specific needs of the communities that it operates in. The Company finalises its community initiatives after a thorough understanding of the specific needs of each community through stakeholder engagement and need assessment.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

FY 2022-23 FY 2021-22

Directly sourced from MSMEs/ small producers

1% 1%

Sourced directly from within the district and neighbouring districts

NA NA

Leadership Indicators

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above):

Details of negative social impact identified

Corrective action taken

The Company undertakes its CSR initiatives directly and through various implementation agencies in accordance with the applicable laws. Details of CSR initiatives taken by the Company and agencies and impact assessment thereof are provided in the Annexure I to the Directors Report.

2. Provide the following information on CSR projects undertaken by your entity in designated inspirational districts as identified by government bodies:

S. No.

State Inspirational District Amount spent (In INR)

The Company undertakes its CSR initiatives directly and through various implementation agencies in accordance with the applicable laws. Details of CSR initiatives taken by the Company and agencies and impact assessment thereof are provided in the Annexure I to the Directors Report.

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising

marginalized / vulnerable groups Rs. (Yes/No)

(b) From which marginalized /vulnerable groups do you procure Rs.

(c) What percentage of total procurement (by value) does it constitute Rs.

No, the Company does not have any preferential procurement policy focusing on suppliers from marginalized / vulnerable groups.

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year), based on traditional knowledge:

S. No.

Intellectual Property based on traditional knowledge Owned /

Acquired (Yes/No)

Benefit shared (Yes / No) Basis of calculating benefit share

The Company does not derive any benefits from intellectual properties owned or acquired based on traditional knowledge.

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved.

Name of authority

Brief of the Case Corrective action taken

Not applicable

6. Details of beneficiaries of CSR Projects:

S. No.

CSR Project No. of persons benefited from CSR Projects % of beneficiaries from vulnerable and marginalized groups

The Company undertakes its CSR initiatives directly and through various implementation agencies in accordance with the applicable laws. Details of CSR initiatives taken by the Company and agencies and impact assessment thereof are provided in the Annexure I to the Directors Report.

PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner.

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

The Company treats customer complaints with utmost importance and believe that it needs to be agile, transparent and solution- oriented to resolve them efficiently and satisfactorily. The Company ensures to keep the customer informed loop throughout the entire process of complaint resolution and focus on resolving customer complaints within five working days, which includes calling the customer within four hours, connecting with the customer within two days, and providing the final resolution to the customer. The Company also maintains multiple points of communication with the customer, that is through SMS/Email/WhatsApp, to keep the customer informed of all actions taken on the complaint.

2. Turnover of products and / services as a percentage of turnover from all products/service that carry.

As a percentage to total turnover

Environmental and social parameters relevant to the product

100

Safe and responsible usage

100

Recycling and / or safe disposal

100

3. Number of consumer complaints in respect of the following:

FY 2022-23

Remarks

FY 2021-22

Remarks

Receive during Pending resolution the year at the end of the year

Receive during Pending resolution the year at the end of the year

Data privacy

Advertising

Cyber-security

Delivery of essential services

Restrictive Trade Practices

Unfair Trade Practices

No complaints have been received under the following categories.

Other

0 0

0 0

4. Details of instances of product recalls on account of safety issues:

Number

Reasons for recall

Voluntary recalls

0

Not applicable

Forced recalls

0

Not applicable

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy Rs. (Yes/No) If available, provide a web-link of the policy.

Yes, the Company has a policy on cyber security and risk related to data privacy, which is available on the Companys website at https://everestkanto.com/wp-content/uploads/2022/12/Data-Privacy-Policy.pdf.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.

Not applicable.

Leadership Indicators

1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available).

The platforms used for the information are Website, Integrated Annual Report, Social Media platforms and Media advertisement/publications. Information relating to all the products and services provided by the Company are available on the Companys website at https://everestkanto.com/portfolio

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.

The Company adheres to relevant regulatory requirements by disclosing information to its stakeholders on the safe and responsible usage of products.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

Not applicable.

4. Does the entity display product information on the product over and above what is mandated as per local laws Rs. (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or the entity as a whole Rs. (Yes/No)

Yes, the Company ensures that all the information as required to be displayed on the product labels as per the applicable rules and regulations are properly displayed. Further, product information is available in the Product Information Sheet and on the website of the Company.

5. Provide the following information relating to data breaches:

a. Number of instances of data breaches along-with impact.

The Company has not had any known incident data breaches during the financial year 2022-23.

b. Percentage of data breaches involving personally identifiable information of customers

Nil