AIA

BUSINESS RESPONSIBILITY &
SUSTAINABILITY REPORT

Indexing

SECTION A: GENERAL DISCLOSURES
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

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

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

I-1.	Corporate Identity Number (CIN) of the listed entity:	L29259GJ1991PLC015182
I-2.	Name of the listed entity:	AIA Engineering Limited
I-3.	Year of incorporation:	11 March, 1991
I-4.	Registered office address:	115, G.V.M.M. ESTATE, ODHAV ROAD, ODHAV, AHMEDABAD - 382415
I-5.	Corporate address:	11/12, SIGMA COPRORATES, B/H. HOF SHOWROOM, OFF. S.G. HIGHWAY, SINDHU BHAVAN ROAD, BODAKDEV, AHMEDABAD - 380054
I-6.	E-mail :	info@aiaengineering.com
I-7.	Telephone :	+91-79-66047800
I-8.	Website :	www.aiaengineering.com
I-9.	Financial year for which reporting is being done:	2023-24
I-10.	Name of the Stock Exchange(s) where shares are listed:	BSE Ltd. and National Stock Exchange of India Limited
I-11.	Paid-up capital:	₹ 18,86,40,740.00
I-12.	Name and contact details (telephone, e-mail) of the person who may be contacted in case of any queries on the BRSR report:	Mr. Paresh Shukla Telephone- +91-79-66047800 E-mail- paresh.shukla@aiaengineering.com
I-13.	Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together).:	Standalone basis
I-14.	Name of assurance provider:	Shailesh Haribhakti & Associates
I-15.	Type of assurance obtained:	Reasonable

II. Products/services

II-16. Details of business activities (accounting for 90% of the turnover):

Description of Main Activity

Manufacturing

Description of Business Activity

Metal and metal products

% of Turnover of the entity

100.00%

II-17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

Product/Service

Manufacturing of other iron and steel casting and products thereof

NIC Code

24319

% of total Turnover contributed

100.00%

III. Operations

III-18. Number of locations where plants and/or operations/offices of the entity are situated:

III-19. Markets served by the entity:

a. Number of locations

National
(No. of states) Locations

28 Number 120

International
(No. of Countries) Locations

What is the contribution of exports as a percentage of the total turnover of the entity?

68.18%

c. A brief on types of customers

The Company serves a diverse array of industries, with the finished products from the Company used as spare parts for multiple industries, including cement, power and mining.

IV. Employees

IV-20. Details as at the end of financial year a. Employees and workers (including differently abled):

S. No.	Particulars	Total(A)	Male		Female
S. No.	Particulars	Total(A)	No(B)	%(B/A)	No(C)	%(C/A)
Employees
1	Permanent (D)	1230	1226	99.67%	4	0.33%
2	Other than permanent (E)	138	137	99.28%	1	0.72%
3	Total employees (D + E)	1368	1363	99.63%	5	0.37%
Workers
1	Permanent (F)	107	107	100.00%	0	0.00%
2	Other than permanent (G)	2791	2763	99.00%	28	1.00%
3	Total workers (F + G)	2898	2870	99.03%	28	0.97%

IV-20. Details as at the end of financial year: b. Differently abled employees and workers:

S. No	Particulars	Total(A)	Male		Female
S. No	Particulars	Total(A)	No(B)	%(B/A)	No(C)	%(C/A)
Differently abled employees
1	Permanent (D)	4	4	100.00%	0	0.00%
2	Other than permanent (E)	0	0	0.0%	0	0.0%
3	Total differently abled employees (D + E)	4	4	100.00%	0	0.00%
Differently abled workers
1	Permanent (F)	1	1	100.00%	0	0.00%
2	Other than permanent (G)	11	11	100.00%	0	0.00%
3	Total workers (F + G)	12	12	100.00%	0	0.00%

IV-21. Participation/inclusion/representation of women

No. and percentage of females

Board of Directors

9 Total (A)

3 No (B)

33.33%

% (B/A)

Key Management Personnel

4 Total (A)

0 No (B)

0.00%

% (B/A)

IV-22. Turnover rate for permanent employees and workers. (Disclose trends for the past 3 years)

	(Turnover rate in current FY)			(Turnover rate in previous FY)			(Turnover rate in the year prior to the previous FY)
	Male	Female	Total	Male	Female	Total	Male	Female	Total
Permanent employees	4.90	0	4.80	9.46	0	9.41	6.56	0	6.54
Permanent workers	0	0	0	1.93	1.93	3.47	3.47	0	3.47

V. Holding, subsidiary and associate companies (including joint ventures)

V-23. (a) Names of Holding/Subsidiary/Associate Companies/Joint Ventures

S. no.	Name of the holding/subsidiary/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? (Yes/No)
1	Welcast Steels Limited	Subsidiary	74.85%	No
2	AIA CSR Foundation	Wholly owned subsidiary	100%	No
3	Vega Industries (Middle East) FZC (Vega ME)	Wholly owned subsidiary	100%	No
4	Vega Industries Limited – UK	Wholly owned subsidiary	100% by Vega ME	No
5	Vega Industries Limited – USA	Wholly owned subsidiary	100% by Vega ME	No
6	Vega Steel Industries (RSA) (Pty) Limited	Subsidiary	74.63% by Vega ME	No
7	Wuxi Vega Trade Co. Limited	Wholly owned subsidiary	100% by Vega ME	No
8	PT Vega Industries Indonesia	Wholly owned subsidiary	99% by Vega ME & 1% by AIA	No
9	VEGA Industries Chile SPA	Wholly owned subsidiary	100% by Vega ME	No
10	AIA Ghana Limited	Wholly owned subsidiary	100% by Vega ME	No
11	VEGA Industries Australia Pty Limited	Wholly owned subsidiary	100% by Vega ME	No
12	Vega Industries Peru Limited	Wholly owned subsidiary	99% by Vega ME & 1% by AIA	No
13	Clean Max Meridius Private Limited	Associate company	26%	No
14	VEGA MPS Pty Limited	Joint venture	43% by Vega ME	No

VI. CSR details

VI-22. (i).

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

Yes

VI-22. (ii).

Turnover (₹ in Lakhs)

₹ 4,14,394.99 Lakhs

VI-22. (iii).

Net worth (₹ in Lakhs)

₹ 6,45,583.58 Lakhs

VII.Transparency and disclosures compliances

VII-25. 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)	2023-24			2022-23
Stakeholder group from whom complaint is received		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	Yes	0	0	NA	0	0	NA
Investors (other than shareholders)	Yes https://aiaengineering.com/wp-content/uploads/2023/06/Policy-Whistle-Blower-Vigil-Mechanism.pdf	0	0	NA	0	0	NA
Shareholders	Yes https://aiaengineering.com/wp-content/uploads/2023/06/Policy-Whistle-Blower-Vigil-Mechanism.pdf	0	0	NA	0	0	NA
Employees and workers	Yes https://aiaengineering.com/wp-content/uploads/2023/06/Human-Rights-Policy.pdf	0	0	NA	0	0	NA
Customers	Yes , The SOP is communicated and maintained internally	27	6	NA	25	NA
Value chain partners	The SOP is communicated and maintained internally	0	0	NA	0	0	NA
Other (please specify)	NA	0	0	NA	0	0	NA

VII-26.Overview of the entity’s material responsible business conduct issues. Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format.

Risk

Negative

Opportunity

Positive

S. 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	Greenhouse gas emissions & energy management		For AIA, a company operating in the manufacturing industry, the operations are highly energy-intensive, predominantly relying on non-renewable fuels due to the large scale of production.	We continuously look to replace high-emission fuels with more clean alternatives.
2	Waste management		As part of manufacturing operations, a significant amount of waste is generated.	Our goal is to reduce the amount of waste we produce and make sure that it is reused or recycled for the same or a different purpose. A ‘waste hierarchical approach’ is applied to reduce, reuse, recycle, and recover waste products in preference to disposal of waste in alignment with the circular economy. Where possible, we explore opportunities for the use of recycled material and reuse of waste by us or other companies through the co-processing of foundry waste and other waste as alternative raw materials or fuel. It presents opportunities for environmental stewardship and helps us manage price-related risks for raw materials. The Company takes waste management seriously and works towards reducing, reusing, and recycling its waste wherever possible. We optimise the use of key resources, including minerals, ensure waste minimisation at sources and facilitate recovery, and recycling. We follow waste management standards that meet or exceed applicable legal requirements and we incorporate industry best practices into our operations and services. We recognise the negative impact of improper waste disposal on the environment and, as a result, put in place strong mechanisms to treat and dispose of the generated waste. We ensure that all waste we generate from our activities is re-melted into the furnace or recycled through authorised recyclers and vendors, applying the Principles of Circular Economy
3	Occupational health and safety		AIA employs a substantial workforce for its operations, which involve working with heavy machinery and equipment.	Implementing Occupational health and safety policy, ISO 45001:2018 Occupational health and safety management systems. Established clear roles, responsibilities and accountabilities for individuals and teams at all levels of the organisation. Training: We provide safety induction training to our workforce at the time of joining and periodical reorientation. Staff and workers participation in safety committee meetings. Conducting safety reviews of the units/plants.
4	Business ethics		Our brand and reputation are priceless assets. Our operational practices, societal contributions, and interactions with the world are constantly examined. Upholding ethical standards is crucial to safeguarding our reputation and brand.	We have separate code of conduct policies for the Board/Sr. Management and all employees

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

Policy and management processes

Disclosure Questions	P1	P2	P3	P4	P5	P6	P7	P8	P9
1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
1. b. Has the policy been approved by the Board? (Yes/No)	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
1. c. Web Link of the Policies, if available	http://www.aiaengineering.com/finances/pdf/HumanRightsPolicy.pdf	http://www.aiaengineering.com/finances/pdf/SustanabilityPolicy.pdf	http://www.aiaengineering.com/finances/pdf/HumanRightsPolicy.pdf	http://www.aiaengineering.com/finances/pdf/EnvironmentPolicy.pdf	Sexual Harassment Policy http://www.aiaengineering.com/finances/pdf/HumanRights Policy.pdf	http://www.aiaengineering.com/finances/pdf/EnvironmentPolicy.pdf http://wwwaiaengineering.com/ finances/pdf/WasteManagement CircularEconomyPolicy.pdf http://www.aiaengineering.com/finances/pdf/ClimateChangeandEnergyManagementPolicy.pdf http://www.aiaengineering.com/finances/pdf/WaterManagementPolicy.pdf	http://www.aiaengineering.com/finances/pdf/HumanRightsPolicy.pdf http://www.aiaengineering.com/finances/pdf/AIA_PolicyWhistleBlower-VigilMechanism.pdf	http://www.aiaengineering.com/finances/pdf/CSRPolicy.pdf	http://www.aiaengineering.com/finances /pdf/ Environment Policy.pdf http://www.aiaengineering.com/finances/pdf/SustanabilityPolicy.pdf
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 partners? (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 your entity and mapped to each principle.	ISO 9001:2015	0	ISO 45001:2018	0	0	ISO 14001:2015	0	0	ISO 9001:2015
5. Specific commitments, goals and targets set by the entity with defined timelines, if any.	Commitment: Yes ,Goal: To understand the current status of employee well-being Specific Target: Zero theft w.r.t. truck drivers Defined timeline: By March 2027	Commitment: Yes Commitment: Yes, committed Goal: To understand the current status of employee after well-being. Specific Target: To carry out an Employee Satisfaction Survey (Target: Atleast 80%) Define Timeline 2027 Performance of the entity against the specific commitments, goals and targets along-with reasons in case the same are not met. The objective is ongoing. Multiple feedbacks will be taken from employees. Defined timeline: By 2027	Commitment: Yes, committed Goal: To understand the current status of employee wellbeing Specific Target: To carry out Employee Satisfaction Survey (Target: Atleast 80%) Define Timeline 2027 Performance of the entity against the specific commitments, goals and targets along-with reasons in case the same are not met. The objective is ongoing. Multiple feedbacks will be taken from employees.	Commitment: Yes, committed Goal: To ensure that all the concerns or interests of stakeholders are addressed and resolved. Specific Target: To enhance customer satisfaction index from 97% to 98.5% To reduce vendor complaints from 26/ year to 10/year To reduce employee grievances from 14/ year to 4/year. Defined Timeline: By 2027.	Commitment: Yes, committed Goal: To ensure protection of human rights at critical MSME vendors Specific Target: To ensure no child labour/forced labour or inhuman working is found in atleast top 50 MSME vendors. Defined Timeline: By 2027	Commitment: Yes, Goal: To contribute and make efforts towards protecting and restoring the environment committed, Specific Target: Zero single use plastic in our packaging and drinking water bottles. To increase usage of renewable energy from 17% to 20% of our total power requirement-Achieved. To increase production of bricks and paver blocks from our discard sand, dust and plastic (Target : 100000 Nos bricks /blocks to be produced up to year 2030). To gradually convert our ie 2 motors to ie 4 motors (more energy efficient motors). To change our employee transportation buses from diesel to electric / hybrid buses (by 2030).	Commitment: Yes, committed Goal: To increase engagement with associations and contribute in influencing public and regulatory policy. Specific Target: To become more participative in CII, FICCI and IIF. To become the lead representative in these forums for alloy steel castings Defined Timeline: by 2030.	Commitment: Yes, committed Goal: Specific Target: To support start-ups and entrepreneurs to manufacture recyclable material in an environmentally friendly manner in order to develop economical and viable glass drinking water bottle. To support selective MSME vendors to adopt sustainable initiatives in their business. Define Timeline: By 2030	Commitment: Yes, committed Goal: To enhance customer delight as part of AIA ethos. Specific Target: To increase the customer satisfaction score to 98%. Defined Timeline: 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 objective is ongoing and is monitored on yearly basis. No. of awareness programmes will be increased for truck drivers.	The objective is on-going and is monitored on Yearly basis. Objective for renewable energy from 17% to 20% of our total power requirement was achieved with this year renewable energy generation of 85127.199 MWH which is 24.27 %. Revised objective will be 27 % by 2027.	The objective is ongoing. Multiple feedbacks will be taken from employees.	The objective is ongoing with monitoring on annual basis.	The objective is ongoing. The same is monitored through audits and educating critical MSME vendors.	The objective is ongoing and is monitored continuously. Objective for renewable energy from 17% to 20% of our total power requirement was achieved with this year renewable energy generation of 85127.199 MWH which is 24.27 %. Revised objective will be 27 % by 2027.	The objective is ongoing and continued monitoring of the participation of our nominees in various bodies is done.	The objective is under progress and shall be mapped every year based on a firm action plan	The objective is ongoing with performance monitoring.

Governance, leadership and oversight

Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure)

As a part of the Board of Directors responsible for our Business Responsibility Report, I am pleased to share our progress and outlook for the coming year. Our commitment to providing optimised solutions through technical evaluation of our customers’ requirements remains steadfast. By offering specifically designed solutions in ideal metallurgy and process optimisation services globally, we continue to lead in Quality, Services, and Innovation within our field. Our reputation for providing global solutions to local requirements is unmatched.

ESG: A Business Necessity

The integration of Environmental, Social, and Governance (ESG) principles into our business operations is no longer optional but a necessity. In the past year, Building on our robust ESG governance framework, we have introduced new policies and systems to ensure continuous improvement in our ESG performance. These enhancements are designed to meet and exceed the expectations of our stakeholders, driving us towards greater sustainability.

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

Board of Directors

Mr. Rajendra S. Shah (DIN 00061922) Category: (Chairman/NED/ID)
Mr. Bhadresh K. Shah (DIN 00058177) Category: (ED)
Mr. Rajan Ramkrishna Harivallabhdas (DIN 00014265) Category: (NED/ID)
Mr. Yashwant M. Patel (DIN 02103312) Category: (ED)
Mrs. Khushali S. Solanki (DIN 07008918) Category: (NED)
Mrs. Bhumika S. Shodhan (DIN 02099400) Category: (NED)
Mr. Sanjay S. Majmudar (DIN 00091305) Category: (NED/ID)
Mr. Dileep C. Choksi (DIN 00016322) Category: (NED/ID)
Mrs. Janaki U. Shah (DIN 00343343) Category: (NED/ID)

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

Yes

10. Details of review of NGRBCs by the Company: Indicate whether review was undertaken by Director/Committee of the Board/Any other Committee

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)

Performance against above policies and follow up action

Directors

Annually

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

11. Has the entity carried out independent assessment/evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency.

Sr. no	P1	P2	P3	P4	P5	P6	P7	P8	P9
1	No	No	Yes	Yes	No	Yes	No	No	Yes

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

Questions	P1	P2	P3	P4	P5	P6	P7	P8	P9
The entity does not consider the principles material to its business (Yes/No)	NA
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

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

Essential Indicators

EI-1. Percentage covered 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

Percentage of persons in respective category covered by the awareness programmes

Board of Directors

4

1. Financial Performance, Budgeting and Planning

2. Orientation on Statutory Compliances as a Board Member

60%

Key Managerial Personnel

4

All principles

100%

Employees other than BoD and KMP

190

Principles - 02, 05 & 06

69.4%

Workers

189

Principles - 02, 05 & 06

34.8%

EI-2. Details of fines/penalties/punishment/award/compounding fees/settlement amount paid in proceedings (by the entity or by directors/KMP) with regulators/law enforcement agencies/judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website)

Monetary
Category	NGRBC Principle	Name of the regulatory/enforcement agencies/judicial institutions	Amount (In ₹)	Brief of the case	Has an appeal been preferred? (Yes/No)
Penalty/ Fine	NA	NA	0	0	No
Settlement	NA	NA	0	0	No
Compounding fee	NA	NA	0	0	No

Non-Monetary
Category	NGRBC Principle	Name of the regulatory/enforcement agencies/judicial institutions	Brief of the Case	Has an appeal been preferred? (Yes/No)
Imprisonment	NA	NA	0	No
Punishment	NA	NA	0	No

EI-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.

S. No.	Case Details	Name of the regulatory/enforcement agencies/ judicial institutions
1	NA	0

EI-4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy - Yes Whistle Blower and Vigil Mechanism Policy covers Anti Corruption/Anti Bribery mechanism.
https://aiaengineering.com/wp-content/uploads/2023/06/Policy-Whistle-Blower-Vigil-Mechanism.pdf

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

Category	(Current financial year)	(Previous financial year)
Directors	0	0
KMP	0	0
Employees	0	0
Workers	0	0

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

Category	Number (CY)	Remarks (CY)	Number (PY)	Remarks (PY)
Number of complaints received in relation to issues of Conflict of Interest of the Directors	0	NA	0	NA
Number of complaints received in relation to issues of Conflict of Interest of the KMP	0	NA	0	NA

EI-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 - NA

EI-8. Number of days of accounts payables ((Accounts payable *365)/Cost of goods/services procured) in the following format:

(Current financial year) 23

Category Number of days of accounts payables

(Previous financial year) 14

EI-9. Open-ness of business. Provide details of concentration of purchases with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties, in the following format. Concentration of Purchases-

Parameter	Metrics	2023-24	2022-23
Concentration of purchases	a. Purchases from trading houses as % of total purchases	0	0
	b. Number of trading houses where purchases are made from	0	0
	c. Purchases from top 10 trading houses as % of total purchases from trading houses	0	0
Concentration of sales	a. Sales to dealers/distributors as % of total sales	61.23%	67.83%
	b. Number of dealers/distributors to whom sales are made	1	1
	c. Sales to top 10 dealers/distributors as % of total sales to dealers/distributors	100%	100%
Share of RPTs in	a. Purchases (Purchases with related parties/Total purchases)	0.46%	0.19%
	b. Sales (Sales to related parties/Total sales)	61.23%	67.83%
	c. Loans & advances (Loans & advances given to related parties/Total loans & advances)	0.00	0.04%
	d. Investments (Investments in related parties/Total Investments made)	0.51%	0.68%

Leadership Indicators

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

Total number of awareness programmes held

36 Topics/principles covered under the training

ESG - P-1, P-2, P-3, P-5, P-6

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

3.7

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

Yes, the Company has devised a Related Party Transactions (RPT) Policy in accordance with the Companies Act, 2013 and SEBI LODR. which keeps a check on conflict of interest involving Board Members.

Link to the policy: https://aiaengineering.com/wp-content/uploads/2023/06/Policy-Related-Party-Transaction.pdf

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

Essential Indicators

EI-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.

R&D

Current Financial Year

Previous Financial Year

Details of improvements in environmental and social impacts

Capex (₹ in crores)

0.83

Current Financial Year

27.23

Previous Financial Year

Renewable energy solutions, cutting-edge energy-saving technologies, environmental and pollution control measures, rigorous fire & safety protocols, advanced LED lighting solutions, and comprehensive employee well-being initiatives.

Details of improvements in environmental and social impacts

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

Yes

EI-2.b. If yes, what percentage of inputs were sourced sustainably? –

The Company has purchased 3% of its silica sand from sustainable sources like glass manufacturers and has also procured 76% of recyclable materials like scrap.

EI-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 -

Currently, there is no process in place for reclaiming products for reuse, recycling, or disposal. However, our products and their packaging materials can be reused and recycled as follows:

Our alloy steel castings (Grinding Media and Castings) are fully recyclable by melting at the end of their life cycle.
The packaging materials for our products, such as HDPE bags and MS drums, are recyclable after use.
Supporting packaging materials like wooden pallets and metals can also be safely disposed of or recycled.

EI-4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes/No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same - EPR (Extended Producer Responsibility) does not apply, as our client manages waste collection and disposal as follows:

Our alloy steel castings (grinding media and castings) are fully recyclable through melting at the end of their lifespan.
Our product packaging consists of either HDPE bags or MS drums, both of which are recyclable after use.
Supporting packaging materials like wooden and metal pallets can be safely disposed of or recycled.
These products and packaging materials are to be sold to registered recyclers or reused internally, in accordance with the applicable laws of the client's country of operation.

Leadership Indicators

LI-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)? If yes, provide details in the following format?

S. No.	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.
	No LCA was conducted this year.

LI-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

S. No.	Name of product/service	Description of the risk/concern	Action taken
	NA	0	0

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

Indicate input material	Recycled or re-used input material to total material
Indicate input material	2023-24	2022-23
Scrap (recycled or reused material)	76.73	75.57
Runner raiser (recycled or reused material)	4.14	2.29
Alloys (Fresh)	19.13	22.14

LI-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:

	2023-24			2022-23
	Re-used	Recycled	Safely disposed	Re-used	Recycled	Safely disposed
Plastics (including packaging)	NA	NA	NA	NA	NA	NA
E-waste	NA	NA	NA	NA	NA	NA
Hazardous waste	NA	NA	NA	NA	NA	NA
Other waste	NA	NA	NA	NA	NA	NA

Remarks: AIA does not reclaim products at end of their life cycle.

LI-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
Products - alloy steel castings	0

Remarks: AIA ships its products to clients worldwide and ensures that the packaging material used for the same can be recycled, reused, or repurposed. As we don’t have direct data from our end clients, we have left the table blank, but we understand that most, if not all, of our clients recycle, reuse, or repurpose the packaging material. In case the customer requests it, we have a buyback policy to reclaim the products we sell.

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

Essential Indicators

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

Category	% of employees covered by
	Total (A)	Health insurance		Accident insurance		Maternity benefits		Paternity benefits		Day care facilities
	Total (A)	Number (B)	% (B/A)	Number (C)	% (C/A)	Number (D)	% (D/A)	Number (E)	% (E/A)	Number (F)	% (F/A)
Permanent employees
Male	1,226	1,226	100.00%	1226	100.00%	0	0.00%	0	0.00%	0	0.00%
Female	4	4	100.00%	4	100.00%	4	100.00%	0	0.00%	0	0.00%
Total	1,230	1,230	100.00%	1230	100.00%	4	0.33%	0	0.00%	0	0.00%
Other than permanent employees
Male	137	137	100.00%	137	100.00%	0	0.00%	0	0.00%	0	0.00%
Female	1	1	100.00%	1	100.00%	1	100.00%	0	0.00%	0	0.00%
Total	138	138	100.00%	138	100.00%	1	0.72%	0	0.00%	0	0.00%

EI-1.b. Details of measures for the well-being of workers.

Category	% of employees covered by
	Total (A)	Health insurance		Accident insurance		Maternity benefits		Paternity benefits		Day care facilities
	Total (A)	Number (B)	% (B/A)	Number (C)	% (C/A)	Number (D)	% (D/A)	Number (E)	% (E/A)	Number (F)	% (F/A)
Permanent workers
Male	107	107	100.00%	107	100.00%	0	0.00%	0	0.00%	0	0.00%
Female	0	0	0.00%	0	0.0%	0	0.00%	0	0.00%	0	0.00%
Total	107	107	100.00%	107	100.00%	0	0.00%	0	0.00%	0	0.00%
Other than permanent workers
Male	2,763	2,763	100.00%	2,763	100.00%	0	0.00%	0	0.00%	0	0.00%
Female	28	28	100.00%	28	100.00%	28	100.00%	0	0.00%	0	0.00%
Total	2,791	2,791	100.00%	2,791	100.00%	28	1.00%	0	0.00%	0	0.00%

EI-1.c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format:

Current financial year

Cost incurred on well-being measures as a % of total revenue of the company

Previous financial year

Cost incurred on well-being measures as a % of total revenue of the company

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

Benefits	No. of employees covered as a % of total employees. (CY)	No. of workers covered as a % of total workers. (CY)	Deducted and deposited with the authority (Y/N/N.A.). (CY)	No. of employees covered as a % of total employees. (PY)	No. of workers covered as a % of total workers. (PY)	Deducted and deposited with the authority (Y/N/N.A.). (PY)
PF	100	100	0	100	100	0
Gratuity	96.53	100	0	100	100	0
ESI	12.83	73.26	0	12.62	22.21	0
Others – please specify	0	0	0	0	0	0

EI-3. 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, 2016? If not, whether any steps are being taken by the entity in this regard -

Yes, the premises/offices of the entity are accessible to differently abled employees and workers as per the requirements of the Rights of Persons with Disabilities Act, 2016. The entity has implemented several accessibility features, including ramps at a few plants, man lifts, accessible restrooms, and an occupational health centre with round-the-clock male nurses and a visiting Certified Industrial Hygienist (CIH) doctor.

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

Yes, AIA is an equal opportunity employer and has an Equal Opportunity Policy as per the Rights of Persons with Disabilities Act, 2016, which is covered under its HR Manual. This HR Manual is an internal document and is communicated to new hires and relevant parties during the induction and orientation programme.

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

Gender	Permanent employees		Permanent workers
Gender	Return to work rate	Retention rate	Return to work rate	Retention rate
Male	0	0	0	0
Female	0	0	0	0
Total	0	0	0	0

Remarks: NA

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

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

Permanent workers

Yes, AIA has a grievance redressal & works committee at every unit, which calls for the participation of both contract and permanent workers/employees, unit heads, functional heads, factory managers and HR managers. The grievance redressal mechanism operates as follows:

Workers are empowered to approach the factory manager or HR manager as convenient; these managers also make themselves available at the plant and on the shop floor on a regular basis
The worker submits a complaint (written/verbal) to the shift or department supervisor, who in turn reports it to his functional head, this is reported to the factory manager and HR.
Complaints are addressed and resolved on priority within a month.
However, if complaints relate to financial implications and require policy changes, then the same will have to be placed before the grievance redressal committee, which meets quarterly.
For sexual harassment, the Company has in place the said policy and required procedures, and a committee has been constituted to address any such issues.

Other than permanent workers

Yes, the Company has a grievance redressal and works committee at each unit, this calls for the participation of both contract and permanent workers/employees, unit heads, functional heads, factory managers, and HR managers. The grievance redressal mechanism operates as follows:

Workers have the authority to approach the factory manager or HR manager at their convenience; these managers maintain regular availability on the plant premises and shop floor.
A worker submits a complaint (written or verbal) to their shift or department supervisor, who then escalates it to their functional head, subsequently reported to the Factory Manager and HR Manager.
Complaints are prioritised and resolved promptly within one month.
Complaints involving financial implications or necessitating policy changes are presented at quarterly grievance redressal committee meetings.
AIA has established policies and procedures for addressing sexual harassment, with dedicated committees at the Moraiya and Kerala units to handle such issues.

Permanent employees

Yes, at every unit, AIA maintains a grievance redressal and works committee involving contract and permanent workers/employees, unit heads, functional heads, factory managers, and HR managers. The grievance redressal process functions as follows:

Employees are encouraged to approach the factory manager or HR manager at their convenience; these managers maintain regular availability on the plant premises and shop floor.
An employee submits a complaint (written or verbal) to their shift or department supervisor, who then escalates it to their functional head, and subsequently to the factory manager and HR.
Complaints are prioritised and resolved promptly within a month.
Complaints involving financial implications or necessitating policy changes are brought before the quarterly grievance redressal committee meeting.
The Company has established policies and procedures to address sexual harassment, with dedicated committees at its Moraiya and Kerala units tasked with handling such issues.

Other than permanent employees

Yes, the Company has a grievance redressal and works committee at each unit, involving participation from both contract and permanent workers/employees, unit heads, functional heads, factory managers, and HR managers. The grievance redressal mechanism is structured as follows:

Employees have the authority to approach the factory manager or HR manager at their convenience, with both managers regularly available on the plant premises and shop floors.
An employee submits a complaint (written or verbal) to their shift or department supervisor, who then reports it to their functional head. The issue is subsequently escalated to the factory manager and the HR department.
Complaints are prioritised and resolved within a month.
If complaints involve financial implications or necessitate policy changes, they are presented at quarterly meetings of the grievance redressal committee.
For cases of sexual harassment, the Company has established policies and procedures. Committees at the Moraiya and Kerala Units are specifically formed to address such issues.

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

Category	2023-24			2022-23
Category	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(D)	%(D/C)
Total permanent employees	1,230	0	0.00%	1,297	0	0.00%
- Male	1,226	0	0.00%	1,291	0	0.00%
- Female	4	0	0.00%	6	0	0.00%
Total permanent workers	107	41	38.32%	177	41	23.16%
- Male	107	41	38.32%	177	41	23.16%
- Female	0	0	0.0%	0	0	0.0%

EI-8. Details of training given to employees and workers:

Category	2023-24					2022-23
	Total (A)	On health and safety measures		On skill upgradation		Total (D)	On health and safety measures		On skill upgradation
	Total (A)	No. (B)	% (B/A)	No. (C)	% (C/A)	Total (D)	No. (E)	% (E/D)	No. (F)	% (F/D)
Employees
Male	1,363	1,363	100.00%	1,363	100.00%	1,354	461	34.05%	481	35.52%
Female	5	5	100.00%	5	100.00%	7	0	0.00%	0	0.00%
Total	1,368	1,368	100.00%	1,368	100.00%	1,361	461	33.87%	481	35.34%
Workers
Male	2,870	2,870	100.00%	2,870	100.00%	2,902	815	28.08%	663	22.85%
Female	28	28	100.00%	28	100.00%	28	0	0.00%	0	0.00%
Total	2,898	2,898	100.00%	2,898	100.00%	2,930	815	27.82%	663	22.63%

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

Category	2023-24			2022-23
Category	Total (A)	No. (B)	% (B/A)	Total (C)	No. (D)	% (D/C)
Employees
Male	1,363	1,226	89.95%	1,354	1,291	95.35%
Female	5	4	80.00%	7	6	85.71%
Total	1,368	1,230	89.91%	1,361	1,297	95.30%
Workers
Male	2,870	107	3.73%	2,902	177	6.10%
Female	28	0	0.00%	28	0	0.00%
Total	2,898	107	3.69%	2,930	177	6.04%

EI-10.a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/No). If yes, the coverage of such system? -

Yes, the organisation is certified under ISO 45001:2018 for Occupational Health & Safety Management System. This certification covers two major plants for grinding media manufacturing located at Moraiya Village and the Kerala GIDC unit at Bavla District, Ahmedabad. The other unit, while not ISO 45001:2018 certified, also adheres to OHS protocols.

EI-10.b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?-

The Company uses the HIRA process, i.e., Hazard Identification and Risk Assessment, to identify work-related hazards and assess risks on a routine and non-routine basis, as per ISO 45001:2018.

EI-10.c. Whether you have processes for workers to report the work related hazards and to remove themselves from such risks. (Y/N) - Yes.

EI-10.d. Do the employees/worker of the entity have access to non-occupational medical and healthcare services? (Yes No)

- Yes, there is a tie-up with hospitals where employees and workers receive benefits under ESIC.

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

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

Implementing occupational health and safety policy, ISO 45001:2018 occupational health and safety management systems. Established clear roles, responsibilities and accountabilities for individuals and teams at all levels of the organisation.
Training: We provide safety induction training to our workforce at the time of joining and periodical reorientation.
Staff and workers’ participation in safety committee meetings.
Conducted safety reviews of the units/plants.
Identified work-related hazards and assess risk on activity-wise HIRA i.e., Hazard Identification and Risk Assessment, as per ISO 45001:2018 (OH&SMS).
Maintained legal register and complied with other obligations.
Reviewed and updated operational controls and procedures.
Work permit system and logout: Followed tagout energy isolation system.
Identified and eliminated hazards proactively.
Emergency preparedness: Conducted personnel trainings on evacuation plan, emergency response plans, including conducting periodic mock drills.
Used labels and signs on shop floors.
Established contractor management procedures.
Ensured entire premises and plant periphery, walkway and zebra crosses are well-defined for men movement traffic.
Established the process of incident investigation and corrective actions.
Adopted good housekeeping practices, including 5S.
Carried out internal and external safety audits periodically.
Ensured first aid boxes are provided at prominent places on shop floors and occupational health ccentres.
Installed fall prevention – fix lifeline systems on roof accesses.
Covered entire premises with fire hydrant system and fire extinguishers.
Installed smoke and heat detectors and manual call points.
Installed CO₂ gas flooding system in electrical panels.
Provided PPE kits to all.

EI-13. Number of complaints on the following made by employees and workers:

Category	2023-24			2022-23
Category	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	0	0	Nil	0	0	Nil
Health & safety	0	0	Nil	0	0	Nil

EI-14. Assessments for the year:

100%

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

Health and safety practices

100%

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

Working conditions

EI-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 -

AIA has built a central storage silo equipped with automated storage and loading facilities to optimize space utilisation for additives, eliminating over-stacking and manual handling. This has reduced workforce intervention and hydra utilisation, enhancing workplace safety.
To enhance roof capacity and eliminate fall hazards, the Company replaced fragile cement sheets with metal roof sheets.
A water sprinkler system has been installed in the LPG manifold area to prevent and protect against fire hazards.

Leadership Indicators

LI-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 organisation provides life insurance or compensation packages in case of death for both employees and workers. Employees are covered under benefits from the Employees’ State Insurance Corporation (ESIC) and Provident Fund (PF), along with term-life insurance policies and group personal accident benefits where applicable. Similarly, workers are also covered under the ESIC and PF schemes.

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

Regularly monitoring and clearing GST, PF, and ESIC dues on a monthly basis.

LI-3. Provide the number of employees/workers having suffered high consequence work-related injury/ill-health/fatalities (as reported in EI-11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment:

Category	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
Category	2023-24	2022-23	2023-24	2022-23
Employees	0	0	0	0
Workers	0	0	0	0

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

Yes, depending on organisational requirements, retiring employees are offered the opportunity to continue their service as consultants.

LI-5. Details on assessment of value chain partners:

3.7%

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

Health and safety practices

3.7%

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

Working conditions

Remarks: In F.Y. 2023-24, out of 109 material groups that transitioned, we considered the value of 61 material groups and excluded inter-plant transfers.

LI-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 -

Following the assessment conducted to address significant health and safety risks or concerns, no deficiencies were identified.

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

Essential Indicators

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

Key stakeholders at AIA have been identified based on criteria such as shareholding, manufacturing activities, industries served, and the geographical proximity of manufacturing units. The identification process follows these five steps:

Comprehensive review of all stakeholders.
Clarification of the purpose of identification
Assessment of their long-term and short-term impact on operations.
Evaluation of their specific business needs.
Prioritisation based on factors such as monetary contribution and relationship duration for customers. Employees are also recognised as key stakeholders due to their crucial role within the organisation. Similarly, suppliers are prioritised based on the criticality of their materials, type of supply, and quantity provided.

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

S. no.	Stakeholder group	Whether identified as vulnerable & marginalised group (Yes/No)	Channels of communication (E-mail, 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
1	Employees	Yes	E-mail, SMS, and notice board	As and when required	Well-being and occupational health and safety, training, employee satisfaction, grievances, communication on policies and SOPs, among others
2	Investors	Yes	Email, newspaper advertisements, SMS, and meetings	Quarterly, annually and event-based	To collect information, to provide the Company's overall status, to encourage them to give their assent or dissent, and to provide them with information about the corporate benefits available to them.
3	Customers	No	Through field engineers, sales order, E-mails, and SMS	As and when required	Technical specification, quality information on products, safety data and buy back policy
4	Regulators	No	By filing web-based forms, and XBRL forms, among others	As and when required	Submission of required details to govt. agencies, understanding new regulations and laws
5	Communities	No	Engagement by Unit HR directly through area/community representative	As and when required	Impacts on the community, community grievances and benefits to be provided
6	Suppliers	No	E-mail, SMS, purchase order and con call	As and when required	Negotiation, quality, technical discussion, sustainability, product information and specification

Remarks: No concerns were raised during the engagements.

Leadership Indicators

LI-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 -

The consultation process between stakeholders and the Board occurs during the Annual General Meeting of shareholders and Board Meetings, where stakeholder feedback is presented to the Board. Additionally, information from the Board to stakeholders is communicated through the Annual Report.

LI-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. We have conducted a detailed digital materiality assessment that involved polling both internal and external stakeholders using the double materiality approach. The responses gathered were integrated into our ESG strategy.

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

PRINCIPLE 5 Businesses should respect and promote human rights.

Essential Indicators

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

Category	2023-24			2022-23
Category	Total (A)	No. of employees/workers covered (B)	% (B/A)	Total (C)	No. of employees/workers covered (D)	% (D/C)
Employees
Permanent	1,230	102	8.29%	1,297	180	13.88%
Other than permanent	138	0	0.00%	64	0	0.00%
Total employees	1,368	102	7.46%	1,361	180	13.23%
Workers
Permanent	107	0	0.00%	177	0	0.00%
Other than permanent	2,791	0	0.00%	2,753	0	0.00%
Total workers	2,898	0	0.00%	2,930	0	0.00%

EI-2. Details of minimum wages paid to employees, in the following format:

Category	2023-24					2022-23
	Total (A)	Equal to minimum wage		More than minimum wage		Total(D)	Equal to minimum wage		More than minimum wage
	Total (A)	No. (B)	% (B/A)	No. (C)	%(C/A)	Total(D)	No.(E)	% (E/D)	No.(F)	% (F/D)
Employees
Permanent	1,230	0	0.00%	1,230	100.00%	1,297	0	0.00%	1,297	100.00%
Male	1,226	0	0.00%	1,226	100.00%	1,291	0	0.00%	1,291	100.00%
Female	4	0	0.00%	4	100.00%	6	0	0.00%	6	100.00%
Other than permanent	138	31	22.46%	107	77.54%	64	0	0.00%	64	100.00%
Male	137	31	22.63%	106	77.37%	63	0	0.00%	63	100.00%
Female	1	0	0.00%	1	100.00%	1	0	0.00%	1	100.00%
Workers
Permanent	107	0	0.00%	107	100.00%	177	0	0.00%	177	100.00%
Male	107	0	0.00%	107	100.00%	177	0	0.00%	177	100.00%
Female	0	0	0.00%	0	0.00%	0	0	0.00%	0	0.00%
Other than permanent	2,791	2,774	99.39%	17	0.61%	2,753	1,070	38.87%	1,683	61.13%
Male	2,763	2,746	99.38%	17	0.62%	2,725	1,045	38.35%	1,680	61.65%
Female	28	28	100.00%	0	0.00%	28	25	89.29%	3	10.71%

EI-3. a. Details of remuneration/salary/wages, in the following format: Median remuneration/wages:

Category	Male		Female
Category	Number	Median remuneration/salary/wages of respective category	Number	Median remuneration/salary/wages of respective category
Board of Directors (BoD)	6	₹ 1,90,14,859 (Total Remuneration)	3	₹ 23,05,000 (Total Remuneration)
Key Managerial Personnel	4	₹ 3,30,23,512 (Total Remuneration)	0	₹ 0
Employees other than BoD and KMP	1,366	₹ 4,96,260 (Median Remuneration)	5	₹ 5,08,605 (Median Remuneration)
Workers	2,870	We do not have access to the data regarding payments made to contract workers. Our payments are made to various contractors, who then manage the payments to the contract workers directly	28	We do not have access to the data regarding payments made to contract workers. Our payments are made to various contractors, who then manage the payments to the contract workers directly

EI-3. b. Gross wages paid to females as % of total wages paid by the entity, in the following format:

	Current financial year	Previous financial year
Gross wages paid to females as % of total wages	0	0

Remarks: As there are very few female workers, % of their wages is not comparable with Gross wages.

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

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

Yes, the Company has a grievance redressal framework in place to address human rights-related grievances. This includes a Grievance Redressal Forum located at its registered unit in Odhav, a dedicated E-mail, and a suggestion box. Furthermore, grievance redressal mechanism operates as follows:

Employees and workers have the option to approach the HR manager or factory manager at their convenience. These managers ensure regular availability at both the plant and shop floor.
Complaints can be submitted in written or verbal form to the shift/department supervisor or functional head, who then escalate them to higher authorities, including the factory manager and HR department.
Complaints are prioritised and resolved within a month.
Issues involving financial implications or requiring policy changes are brought before the grievance redressal committee, which meets quarterly.
Specific policies and procedures are implemented to address cases of sexual harassment, with dedicated committees established at the Moraiya and Kerala units. For more details on the Company’s policies and procedures, please visit: hyperlink this with the following link: https://aiaengineering.com/investor-policy/

EI-6. Number of complaints on the following made by employees and workers:

Category	2023-24			2022-23
Category	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	0	0		0	0
Discrimination at workplace	0	0		0	0
Child labour	0	0		0	0
Forced labour/Involuntary labour	0	0		0	0
Wages	0	0		0	0
Other human rights related issues	0	0		0	0

EI-7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:

Particulars	Current financial year	Previous financial year
Total complaints reported under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH)	0	0
Complaints on POSH as a % of female employees/workers	0	0
Complaints on POSH upheld	0	0

EI-8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases -

Certainly. Yes, the Company has implemented several measures to prevent adverse consequences to complainants in cases of discrimination and harassment. At its Registered Unit in Odhav, there is a Grievance Redressal Forum, along with a dedicated e-mail and a suggestion box for reporting concerns. Employees are encouraged to approach the HR manager at their convenience, and they can submit complaints (written or verbal) to their functional heads, which are then escalated to the HR department. Complaints are addressed and resolved on priority basis within one month.

Furthermore, AIA has established an Internal Complaints Committee (ICC) specifically to handle complaints of sexual harassment. The Company is committed to fostering a healthy and supportive work environment where women can operate without fear of gender bias, prejudice, or harassment. Measures are in place to ensure no adverse consequences for complainants, with issues addressed in a fair and transparent manner. Details and the inquiry process are treated with strict confidentiality.

Moreover, if the aggrieved person is unable to file a complaint due to physical incapacity, a relative, friend, co-worker, an officer from the National Commission for Women or State Women’s Commission, or any informed person may file a complaint on their behalf with their written consent.

EI-9. Do human rights requirements form part of your business agreements and contracts? (Yes/No) - Yes

EI-10. Assessments for the year:

EI-11. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at EI-10 above - Not Applicable

Leadership Indicators

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

No business process was modified/introduced as a result of addressing human rights grievances.

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

Currently, our Human Rights due diligence extends exclusively to internal employees. However, there are plans to expand this coverage to include the supply chain (upstream) in the future.

LI-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, 2016? -

Yes, the entity’s premises/offices comply with the provisions of the Rights of Persons with Disabilities Act, 2016, ensuring accessibility for differently abled visitors. They have installed ramps at several locations, provided a manlift, and ensured accessible restroom facilities. Additionally, there is an Occupational Health Centre staffed with male nurses available around the clock, along with visits from a CIH-Certified Doctor.

LI-4. Details on assessment of value chain partners:

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

No shortcomings were identified.

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

Essential Indicators

EI-1. Details of total energy consumption (in Giga Joules) and energy intensity, in the following format:

Parameter	FY 2023-24	FY 2022-23
From renewable sources
Total electricity consumption (A)	3,06,457.92	2,21,140.34
Total fuel consumption (B)	0	0
Energy consumption through other sources ( C )	0	0
Total energy consumed from renewable sources (A+B+C)	3,06,457.92	2,21,140.34
From non-renewable sources
Total electricity consumption (D)	9,60,197.05	10,57,189.24
Total fuel consumption (E)	5,36,487.4341	4,75,655
Energy consumption through other sources (F)	0	0
Total energy consumed from non-renewable sources (D+E+F)	14,96,684.48	15,32,844.24
Total energy consumed (A+B+C+D+E+F)	18,03,142.40	17,53,984.58
Energy intensity per rupee of turnover (Total energy consumption/ turnover in rupees)	4.35 GJ / Lakh	4.34 GJ / Lakh
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total energy consumed / Revenue from operations adjusted for PPP)	97.47 GJ / Lakh $	96.13 GJ / Lakh $
Energy intensity in terms of physical output	6.30 GJ / MT	6.28 GJ / MT
Energy intensity (optional) – the relevant metric may be selected by the entity	-	-

Remarks- For the FY 2022-2023, electricity consumption data does not contain consumption for Odhav Main Office U-3, Kujad Plant and other ancillary Plants of Moraiya & Kerala GIDC.

However, for FY 2023-2024, we have included the electricity consumption for the above plants too.

EI-1. Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

No.

EI-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? (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

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

Parameter	2023-24	2022-23
Water withdrawal by source (in kilolitres)
(i) Surface water	0	0
(ii) Groundwater	1,99,931	2,11,312
(iii) Third party water	71,120	58,752
(iv) Seawater/desalinated water	0	0
(v) Others	0	0
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)	2,71,051	2,70,064
Total volume of water consumption (in kilolitres)	3,13,800	3,00,708
Water intensity per rupee of turnover (Water consumed/turnover)	0.7572 KL/Lakh	0.7435 KL/Lakh
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total water consumption/Revenue from operations adjusted for PPP)	16.9624 KL/Lakh$	16.4801 KL/Lakh$
Water intensity in terms of physical output	1.0971 KL/MT	1.0768 KL/MT
Water intensity (optional) – the relevant metric may be selected by the entity. KL/KL of Water withdrawal	1.16	1.11

Remarks: For water consumption calculations, we have accounted for 42,749 KL of reused water in 2023-24 and 30,644 KL in 2022-23.

EI-3. Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency- No.

EI-4. Provide the following details related to water discharged: Water discharge by destination and level of treatment (in kilolitres)

Parameter	2023-24	2022-23
Water discharge by destination and level of treatment (in kilolitres)
(i) To surface water
- No treatment	0	0
- With treatment	0	0
(ii) To groundwater
- No treatment	0	0
- With treatment	0	0
(iii) To seawater
- No treatment	0	0
- With treatment	0	0
(iv) Sent to third-parties
- No treatment	0	0
- With treatment	0	0
(v) Others
- No treatment	0	0
- With treatment	0	0
Total water discharged (in kilolitres)	0	0

EI-4. Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

- No.

EI-5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.

- Yes, AIA effectively utilises all treated wastewater. Domestic wastewater undergoes treatment and is reused for purposes like cooling tower operations, gardening, and toilet flushing. Furthermore, the cooling tower blowdown is repurposed for cooling slag and sand. To reduce cooling tower blowdown, the Kerala GIDC unit has established an air-type dry cooling tower for water cooling purposes.

EI- 6. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter

NOx

SOx

Particulate matter (PM)

Persistent organic pollutants (POP)

Volatile organic compounds (VOC)

Hazardous air pollutants (HAP)

Others

Please specify unit

ppm

mg/nm³

Current financial year

4.94

10.73

50.91

Previous financial year

4.64

5.77

36.19

Parameter	Please specify unit	Current financial year	Previous financial year
NOx	ppm	4.94	4.64
SOx	ppm	10.73	5.77
Particulate matter (PM)	mg/nm³	50.91	36.19
Persistent organic pollutants (POP)	0	NA	NA
Volatile organic compounds (VOC)	0	NA	NA
Hazardous air pollutants (HAP)	0	NA	NA
Others	0	NA	NA

NA - Not Applicable

EI-6. Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency -

Yes, third-party environmental monitoring for our Ahmedabad region unit has been carried out by M/s. Akshar Consultants, an external agency approved by SPCB as environmental auditors and accredited by NABL as a laboratory.

EI-7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) in MTCO2E & its intensity, in the following format:

Parameter	Unit	2023-24	2022-23
Total Scope 1 emissions (Break-up of the GHG into CO₂, CH₄, N₂O, HFC_s, PFC_s, SF₆, NF₃, if available)	TCO₂e	32,793.68	28,474.83
Total Scope 2 emissions (Break-up of the GHG into CO₂, CH₄, N₂O, HFC_s, PFC_s, SF₆, NF₃, if available)	TCO₂e	1,89,372.20	2,37,867.58
Total Scope 1 and Scope 2 emission intensity per rupee of turnover	TCO₂e / rupee of turnover	0.5361 TCO₂e / Lakh	0.6585 TCO₂e / Lakh
Total Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)	TCO₂e / rupee of turnover	12.0091 TCO₂e / Lakh $	14.5967 TCO₂e / Lakh $
Total Scope 1 and Scope 2 emission intensity in terms of physical output	TCO₂e / MT Production	0.7768 TCO₂e / MT	0.9312 TCO₂e / MT
Total Scope 1 and Scope 2 emission intensity (optional) – the relevant metric may be selected by the entity	-	-	-

Remarks- For the FY 2022-2023, electricity consumption data does not contain consumption for Odhav Main Office U-3, Kujad Plant and other ancillary Plants of Moraiya & Kerala GIDC.

However, for FY 2023-2024, we have included the electricity consumption for the above plants too.

AIA Engineering invests in generation of renewable electricity through wind and solar and consumes in its own operations and gets credit from the electricity provider. However, in the FY 2022-2023, the share of renewable electricity generation was not accounted for, hence the Scope 2 emissions were higher. We have accounted for the same this year and re-stated the Scope 2 emissions for the FY 2022-2023 reflecting the same.

EI-7. Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

- No.

EI-8. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details .

Yes, AIA through its CSR Foundation, in collaboration with the ARC foundation Gandhinagar, has launched an extensive tree plantation initiative to reduce GHG emissions.

To date, a total of 4,70,000 trees have been planted, including approximately 1,00,000 trees in the year 2023-24 at various locations: BDE-Chiloda, Deesa-BSF, Chiloda Air Force Colony, Air Force Recruitment Board Gandhinagar, Ahmedabad Military Cantonment Board, Baroda Military Cantonment, and Baroda Air Force. Quarterly assessments are conducted to evaluate the impact of this ongoing initiative.

Additionally, AIA continues its tree plantation programme, aiming to reduce an estimated 2,500 MT CO₂e of GHG emissions annually for every 1,00,000 trees planted.

Furthermore, AIA has installed 11 wind energy turbines with a total installed capacity of 31.8 MW and 3 sets of Hybrid (Wind+Solar) Plants having installed capacity of 4.4 MW. In the fiscal year 2023-24, AIA generated 85,127.199 MWh of electricity from renewable sources, contributing to offsetting 60,440 tonnes of CO₂ emissions.

EI-9. Provide details related to waste management by the entity, in the following format:

Parameter	2023-24	2022-23
Total waste generated (in metric tonnes)
Plastic waste (A)	293.00	274.00
E-waste (B)	1.25	1.26
Bio-medical waste (C)	0.01	0.01
Construction and demolition waste (D)	0.00	0.00
Battery waste (E)	10.29	2.74
Radioactive waste (F)	0.00	0.00
Other hazardous waste (Used oil, waste residues containing oil , and MS drums/barrel and other empty containers) (G)	166.24	90.52
Other non-hazardous waste generated (H) (Waste sand (sand/dust), Slag) (Break-up by composition i.e. by materials relevant to the sector)	1,40,369.00	1,36,144.00
Total (A + B + C + D + E + F + G + H)	1,40,839.79	1,36,512.53
Waste intensity per rupee of turnover (Total waste generated/Revenue from operations)	0.3399 MT/Lakh	0.3375 MT/Lakh
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total Waste Generated/Revenue from operations adjusted for PPP)	7.6131 MT/Lakh$	7.4815 MT/Lakh$
Waste intensity in terms of physical output	0.4924 MT/MT	0.4888 MT/MT
Waste intensity (optional) the relevant metric may be selected by the entity	-	-
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)
Total waste generated (in metric tonnes)
Category of waste - Plastic
(i) Recycled	293.00	274.24
(ii) Re-used	0.00	0.00
(iii) Other recovery operations	0.00	0.00
Total	293.00	274.24

Category of waste - E-waste
(i) Recycled	1.25	1.26
(ii) Re-used	0.00	0.00
(iii) Other recovery operations	0.00	0.00
Total	1.25	1.26

Category of waste - Biomedical waste
(i) Recycled	0.00	0.00
(ii) Re-used	0.00	0.00
(iii) Other recovery operations	0.00	0.00
Total	0.00	0.00

Category of waste - Construction and demolition waste
(i) Recycled	0.00	0.00
(ii) Re-used	0.00	0.00
(iii) Other recovery operations	0.00	0.00
Total	0.00	0.00

Category of waste - Battery waste
(i) Recycled	10.29	2.74
(ii) Re-used	0.00	0.00
(iii) Other recovery operations	0.00	0.00
Total	10.29	2.74

Category of waste - Radioactive waste
(i) Recycled	0.00	0.00
(ii) Re-used	0.00	0.00
(iii) Other recovery operations	0.00	0.00
Total	0.00	0.00
Category of waste - Other hazardous waste
(i) Recycled (Used oil, MS drums/barrel and other empty containers )	103.52	74.51
(ii) Re-used	0.00	0.00
(iii) Other recovery operations	0.00	0.00
Total	103.52	74.51

Category of waste - Other non-hazardous waste
(i) Recycled (Waste sand)	16,307.00	14,457.00
(ii) Re-used	0.00	0.00
(iii) Other recovery operations (Slag)	12,922.00	7,863.00
Total	29,229.00	22,320.00
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Parameter	2023-24	2022-23
Category of waste - Plastic
(i) Incineration	0.00	0.00
(ii) Landfilling	0.00	0.00
(iii) Other disposal operations	0.00	0.00
Total	0.00	0.00

Category of waste - E-waste
(i) Incineration	0.00	0.00
(ii) Landfilling	0.00	0.00
(iii) Other disposal operations	0.00	0.00
Total	0.00	0.00

Category of waste - Biomedical waste
(i) Incineration	0.01	0.01
(ii) Landfilling	0.00	0.00
(iii) Other disposal operations	0.00	0.00
Total	0.01	0.01

Category of waste - Construction and demolition waste
(i) Incineration	0.00	0.00
(ii) Landfilling	0.00	0.00
(iii) Other disposal operations	0.00	0.00
Total	0.00	0.00
Category of waste - Battery
(i) Incineration	0.00	0.00
(ii) Landfilling	0.00	0.00
(iii) Other disposal operations	0.00	0.00
Total	0.00	0.00

Category of waste - Radioactive
(i) Incineration	0.00	0.00
(ii) Landfilling	0.00	0.00
(iii) Other disposal operations	0.00	0.00
Total	0.00	0.00

Category of waste - Other hazardous waste generated
(i) Incineration (waste residues containing oil)	62.72	16.01
(ii) Landfilling	0.00	0.00
(iii) Other disposal operations	0.00	0.00
Total	62.72	16.01

Category of waste - Other non-hazardous waste generated
(i) Incineration	0.00	0.00
(ii) Landfilling (Waste sand (sand/dust))	1,16,166.00	1,13,824.00
(iii) Other disposal operations	0.00	0.00
Total	1,16,166.00	1,13,824.00

Remarks: Other hazardous waste includes used oil, residues containing oil, and MS drums/containers. Other non-hazardous wastes includes waste sand and slag.

EI-9.Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

- No.

EI-10. 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 -

Waste Management Practices: At our establishment, we prioritise waste reduction, reuse, and recycling in accordance with a waste hierarchy approach, aligning closely with the principles of the circular economy. Our strategies include:

Reducing Waste Generation: We optimise the use of resources, including minerals, to minimise waste at its origin.
Reuse and Recycling: We actively seek opportunities to reuse waste both internally and externally, such as by utilising foundry waste and other materials as alternative raw materials or fuel through co-processing.
Compliance and Best Practices: We surpass legal requirements in waste management and incorporate industry-leading best practices into our operations.
Environmental Stewardship: Recognising the environmental consequences of improper waste disposal, we employ robust mechanisms for waste treatment and disposal.

Specific Practices:

Eco-friendly Brick Production: Utilising foundry waste materials such as sand and plastic, we manufacture eco-friendly bricks and paver blocks. In the previous year, we utilized approximately 150 MT of waste materials to produce over 50,000 bricks and paver blocks. Similarly, for F.Y. 2023-24, we continued this practice, using 172 MT of waste material to manufacture 57,000 bricks and paver blocks, contributing to sustainable construction practices.
Co-processing with Ambuja Cement: We engage in co-processing with Ambuja Cement to reuse waste silica sand generated by foundry operations in cement kilns. In F.Y. 2022-23, 14,457 tonnes of waste silica sand were utilized for co-processing. Similarly, for F.Y. 2023-24, we continued this practice, utilizing 16,307 tonnes of silica sand for co-processing at Ambuja Cement Limited (an Adani Group company), ensuring regulatory compliance and sustainable waste disposal.
Organic Waste Utilisation: Kitchen and canteen waste are converted into organic manure through in-house composting machines and external waste management agencies. Approximately 70 MT of canteen and kitchen waste were effectively utilized for organic manure production and composting in F.Y. 2022-23. Similarly, in F.Y. 2023-24, we converted 67 MT of kitchen waste into organic manure.
Waste Sand: The Company has integrated mechanical and thermal reclaimers to recycle its molding sand, reducing the requirement for silica sand by 80%. The waste sand generated is used in co-processing in cement kilns and for making bricks and paver blocks.
Slag: Slag is reprocessed in our captive slag processing plant for metal recovery, with the recovered metal reused as raw material in foundry operations. In F.Y. 2022-23, a total of 7,863 tonnes of slag were processed in the Slag Processing Plant, recovering 900 tonnes of metal. Similarly, for F.Y. 2023-24, 12,922 tonnes of slag were processed, recovering 1,099 tonnes of metal.
Hazardous Waste Management: We prioritise the reuse and recycling of hazardous waste to promote a circular economy and minimize environmental impact. Our practices include:
- Partnerships with approved facilities for decontamination, recycling, and disposal of hazardous waste components like containers, oils, e-waste, batteries, and biomedical waste.
- Transportation and disposal of all hazardous waste using registered vehicles and in compliance with regulatory standards.
Non-Hazardous Waste Management: Our practices for managing non-hazardous waste include:
Our waste management policies and practices are detailed in our Waste Management Circular Economy Policy, underscoring our commitment to sustainability and environmental responsibility.

Hazardous Waste:

Hazardous waste is being disposed of by following the hierarchy of disposal to create wealth from waste to promote a circular economy. To ensure material conservation, top priority is given to the co-processing and/or recycling facility rather than TSDF/ INC for hazardous waste disposal.

We have a MoU with an SPCB-approved decontamination facility for the reuse of waste containers and recycling of liner and plastics bags.
Used/waste oil generated is sold only to registered recyclers.
E-Waste is being disposed of with a registered e-waste recycler.
Battery waste is being sold to registered battery/lead recyclers only.
Bio-medical waste from OHC is being disposed of with a registered biomedical waste incineration facility.
The waste residues containing oil i.e., oily sludge generated at our plants are disposed of in SPCB approved CHWIF (Incineration).
All hazardous waste is transported to disposal facility by registered vehicles.

EI-11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals/ clearances are required, please specify details in the following format:

Location of operations/offices

Type of operations

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

EI-12. 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

Remarks: Not Applicable

EI-13. 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:

Specify the law/regulation/guidelines which was not complied with

Yes, AIA is completely compliant.

Provide details of the non-compliance

Any fines/penalties/action taken by regulatory agencies such as pollution control boards or by courts

Corrective action taken, if any

Remarks: Not Applicable

Leadership Indicators

LI-1.Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):

(i) Name of the area- Not Applicable

LI-1.Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):

(ii) Nature of operations - Not Applicable

LI-1.Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): Water withdrawal, and consumption in the following format:

Parameter	2023-24	2022-23
Water withdrawal by source (in kilolitres)
(i) Surface water	0	0
(ii) Groundwater	0	0
(iii) Third party water	0	0
(iv) Seawater/desalinated water	0	0
(v) Others	0	0
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)	0	0
Total volume of water consumption (in kilolitres)	0	0
Water intensity per rupee of turnover (Water consumed/turnover)	0.0000 KL/Lakh	0.0000 KL/Lakh
Water intensity (optional) – the relevant metric may be selected by the entity.KL/KL of Water withdrawal	0.00	0.00

Water discharge by destination and level of treatment (in kilolitres)
(i) To surface water
- No treatment	0	0
- With treatment	0	0
(ii) To groundwater
- No treatment	0	0
- With treatment	0	0
(iii) To seawater
- No treatment	0	0
- With treatment	0	0
(iv) Sent to third-parties
- No treatment	0	0
- With treatment	0	0
(v) Others
- No treatment	0	0
- With treatment	0	0
Total water discharged (in kilolitres)	0	0

LI-1. Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

- No.

LI-2. Please provide details of total Scope 3 emissions (MTCO2E) & its intensity, in the following format:

Parameter	Unit	2023-24	2022-23
Total Scope 3 emissions (Break-up of the GHG into CO₂, CH₄ , N₂O, HFCs, PFCs, SF₆, NF₃ , if available)	TCO₂e	139479	158129
Total Scope 3 emissions per rupee of turnover	TCO₂e/rupee of turnover	0.3366/TCO₂e/Lakh	0.3909/TCO₂e/Lakh
Total Scope 3 emission intensity (optional) - In terms of physical output	TCO₂e/MT Production	0.49/TCO₂e/MT	0.57/TCO₂e/MT

Remarks: Scope 3 emissions have been included in our calculations, covering:

Purchased goods and services
Capital goods
Upstream transportation and distribution
Business travel
Employee commute
Downstream transportation and distribution.

For the year F.Y. 2023-24, we updated Scope 3 emissions figures based on improved calculation methodologies, reinstating figures from F.Y. 2022-23 for accuracy.

LI-2. Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

-No

LI-3. With respect to the ecologically sensitive areas reported at EI-11 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.

-Not Applicable

LI-4. 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	AIA’s products demonstrate exceptional operational efficiency, meticulously tailored to meet the specific demands of each casting application. Our High Chrome and Sintercast technologies are renowned for their advanced quality and superior throughput, maintained through precise metal composition ratios. This efficiency directly translates into significant power savings during operation, reducing coal consumption and leading to substantial carbon savings. Ultimately, this contributes significantly to lowering CO₂ emissions, making a meaningful impact on greenhouse gas reductions for our customers. For example, in the context of cement grinding, we observed substantial savings in alloys and a reduced carbon footprint by transitioning grinding elements from conventional alloy grades to VEGA Specific Grade. An analysis highlighted the anticipated reduction in greenhouse gases achieved through improved performance in grinding mills and tube mills. In the period from April 2023 to March 2024, the castings supplied by AIA Engineering Limited (via Vega Industries) for Vertical Mills and Tube Mills demonstrated promising results. By utilizing Ceramic-based Grinding elements (Sintercast) for Vertical Roller Mills (VRM) and optimizing the alloy combinations in grinding media and latest liners/grate plates, an estimated 46.12 tonnes of CO₂ equivalent greenhouse gas emissions were avoided per tonne of specific product used in sectors such as cement, power plants, and tube mills at customer facilities. This resulted in a total absolute reduction of 13,35,322 tonnes of CO₂e controlled/avoided based on the volume of products sold. Total tonnage of liner castings sold amounted to 28,949 MT, contributing significantly to the reduction of 13,35,322 tonnes of GHG emissions. Remarks: Conversion of energy kWh to carbon considered factors such as specific coal consumption (0.5 Kg/kWh) and carbon content in coal (40% fixed carbon + volatile matter). Calculations were based on operational hours of various cement plants, power plants, and tube mills where AIA conducted business.		Tonnage of liner castings sold: 28,949 MT, which helped to control CO₂ and 13,35,322 tonnes of GHG emissions. Total absolute reduction as CO₂e
2	We utilize medium frequency induction furnaces for all our melting operations, which operate on electricity. This closed-loop process is designed to minimise energy loss and heat dissipation, thereby contributing to the reduction of greenhouse gas emissions.		There is minimal loss of energy and heat, which helps in reducing greenhouse gas (GHG) emissions.
3	We utilise direct energy for the heat treatment process across all our foundry units. To mitigate Scope 1 emissions, we have transitioned to Piped Natural Gas (PNG) and Liquid Petroleum Gas (LPG). Additionally, we have implemented flue gas recuperators on all our PNG-fired heat treatment furnaces. These recuperators enhance furnace efficiency by recovering heat from flue gases. The recovered waste heat is then utilized to preheat the combustion air supplied to the burners.		Helping in the reduction of GHG Emissions Scope -1
4	AIA has installed 11 wind energy turbines and 3 sets of hybrid (wind + solar) systems in Gujarat, with a total installed capacity of 37.38 MW of renewable energy. During F.Y. 2023-24, The Company generated 85,127.199 MWh of electricity from renewable sources and supplied it to the grid.		85,127.199 MWh of renewal energy were generated.
5	Rainwater Harvesting: AIA has implemented a rainwater harvesting system aimed at replenishing groundwater resources. This system includes installation of recharge wells at various locations: four wells at Kerala GIDC Plant and two at Moraiya Plant, complemented by an onsite pre-filtration system. Additionally, three recharge wells have been established outside the premises—one each at Chiloda and Moraiya Villages to further support groundwater recharge efforts. The total estimated rooftop recharge water amounts to 82,708 kiloliters, calculated based on an average rainfall of 744 mm.		Estimated water recharge: 82,708 KL
6	Zero Liquid Discharge (ZLD) practices are upheld across all our plants, supported by various initiatives aimed at minimizing water consumption. At Kerala GIDC Plant, we've implemented a dry-type cooling tower that significantly reduces blow down. This discharged water is now reused for sand mold preparation and cooling sand/slag. Greywater and sewage undergo treatment in our STP (Sewage Treatment Plant), with the treated water repurposed for gardening, toilet flushing, and cooling towers. Furthermore, we've adopted automatic and spring-operated water taps to mitigate potable water wastage, along with the installation of waterless urinals.		42,749 kiloliters of treated water from the STP was reused.
7	Eco-friendly Bricks and Paver Blocks Production The brick and paver block making machine, with a capacity of 200 units per day and operating on average for 24 days per month, produces approximately 57,600 bricks and paver blocks annually across 288 operational days. Each brick or paver block weighs an estimated 2.8 kg. Composition and Waste Material Utilization The production process utilises materials in the ratio of 30% plastic, 35% sand, and 35% dust. For instance, a single 2.8 kg product consists of 840 grams of plastic, 980 grams of sand, and 980 grams of dust. Alternatively, a ratio of 20% plastic, 40% sand, and 40% dust can also be used. Annual Waste Material Utilization Plastic: Approximately 48 tonnes of waste HDPE bags recycled. Sand: Approximately 56 tonnes of waste silica sand recycled. Dust: Approximately 56 tonnes of waste dust recycled. Total Waste Material Recycled: 160 tonnes annually. Revenue Generation The initiative generates revenue amounting to ₹ 2,88,000 through the conversion of waste into wealth (calculated at ₹ 5 per unit, with 57,600 units produced).		Approximately 160 tonnes of waste reused to produce 57,000 bricks and blocks, generating revenue of ₹ 2,80,000.
8	Recycling Foundry Sand in Cement Industry for Co-processing: Discarded molding sand from foundries is a solid waste and a by-product of our production process. We have established a Memorandum of Understanding (MOU) with Ambuja Cement Limited (Adani Group Co.) to offer a sustainable solution for managing this sand waste. The discarded sand waste is reused in cement manufacturing through co-processing, ensuring compliance with regulatory standards and adhering to the highest Occupational Health and Safety (OH&S) norms. Ambuja Cement safely utilizes AIA's generated waste in its cement kilns located at Kodinar, Dist. Gir Somnath, Gujarat. Sustainable Waste Disposal & Certification: For each batch of waste co-processed at Ambuja Cement, they issue a disposal certificate detailing the quantity of waste utilized. In total, 16,307 tonnes of foundry waste sand were co-processed at Ambuja Cement Limited.		Total: 16,307 metric tonnes of foundry waste sand were utilized for co-processing at Ambuja Cement Limited (a company within the Adani Group).
9	Slag Processing Unit - We reprocess slag in our dedicated slag processing plant to recover metal, which is then reused as raw material in our foundry operations. In the reporting period, we processed a total of 12,922 metric tonnes of slag in the plant, recovering a total of 1,099 tonnes of metal for reuse in casting production.		A total of 12,922 metric tonnes of slag underwent processing at our Slag Processing Plant, resulting in the recovery of 1,099 tonnes of metal that was subsequently reused in our plant for casting production.
10	Energy Reduction Initiatives in F.Y. 2023-24: Efficient machine usage resulting in energy savings: 710,054 units saved (kWh/annum). Technology upgrade resulting in energy savings: 5,40,296 units saved (kWh). Optimization of temperature and pressure through technology upgrades: 3,90,640 units saved.		Total energy saved per annum: 1,640,990 kWh.
11	Carbon reduction initiative through the use of innovative heaterless vaporizers in LPG installations at our major GM plants has resulted in an estimated accumulated carbon offset of 221 metric tonnes of CO₂ per manifold per year.		The estimated accumulated carbon offset from both sets is 442 metric tonnes per year.
12	AIA through its CSR Foundation, in partnership with the ARC Foundation Gandhinagar, has launched a significant tree plantation campaign aimed at reducing GHG emissions. To date, a total of 470,000 trees have been planted, including approximately 100,000 trees in the year F.Y. 2023-24. These plantations are located at various sites such as BDE-Chiloda, Deesa-BSF, Chiloda Air-Force Colony, Air Force Recruitment Board Gandhinagar, Ahmedabad, Military Cantonment Board Baroda, and Baroda Air Force. Quarterly assessments are conducted to evaluate the impact of this initiative. The tree plantation effort is ongoing and forms a continuous programme for AIA.		Approximately 2,500 metric tonnes of CO₂ equivalent greenhouse gases are estimated to be reduced per year for every 10,00,000 trees planted.

LI-5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/web link -

Yes, an onsite emergency plan is meticulously prepared with the primary objective of safeguarding all employees, nearby individuals, and company property from potential fire, explosion, or other major accidents stemming from natural or manmade disasters. The effectiveness of this plan relies heavily on each individual promptly executing their assigned duties. Taking into account factors such as employee numbers, materials, processes, resource availability, and site location, the plan is strategically developed. The objectives of the emergency planning include:

Defining and assessing emergencies, including risk and environmental impact assessments.
Preventing emergencies from escalating into disasters.
Ensuring the safety of employees and people in the vicinity.
Minimizing damage to property and the environment.
Informing employees, the public, and authorities about assessed hazards/risks, provided safeguards, residual risks, and their roles during emergencies.
Being prepared for ‘Mutual Aid’ if neighboring units require assistance.
Notifying authorities and mutual-aid centers for assistance.
Effectively rescuing and treating casualties.
Identifying and listing any fatalities or injuries.
Informing and assisting relatives.
Securing the safe rehabilitation of affected areas and restoring normal operations.
Providing accurate information to the news media.
Preserving records, equipment, and organising investigations into the cause of emergencies and preventive measures to prevent recurrence.
Ensuring the safety of worksites before personnel re-enter and resume work.
Developing a comprehensive plan with provisions for handling emergencies, including preparedness measures and regular drills.

For example, the Disaster Management Plan for Information Technology (IT) addresses current global cyber security threats such as ransomware, hacking, malware, and spoofing. While the company implements various mitigation programs, the evolving nature of cyber threats remains a concern due to ongoing developments in virus and breach techniques. To mitigate risks, the company has established a robust disaster recovery mechanism that can redirect operations to a secondary server in case of an incident, ensuring minimal disruption. The IT team conducts quarterly Disaster Recovery (DR) drills, achieving satisfactory results each time.

LI-6. 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.

- No significant adverse effects were observed.

LI-7. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.

- 3.7%

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

Essential Indicators

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

EI-1.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	FICCI	National
2	CII	National
3	GCCI	State
4	EEPC	National
5	MIDC	State

EI-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
No issues related to anti-competitive conduct by the entity	NA	NA

Leadership Indicators

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

Public policy advocated	Method resorted for such advocacy	Whether information available in public domain? (Yes/No)	Frequency of review by Board (annually/half yearly/quarterly/others – please specify)	Web link, if available
No	No	No	Others	No

PRINCIPLE 8 Businesses should promote inclusive growth and equitable development.

Essential Indicators

EI-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
NA	NA	NA	NA	NA	NA

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

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 ₹)
NA	NA	NA	0	0.00%	0

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

- Grievances are handled by the Unit HR representative in consultation with the Cluster Head and other relevant department heads.

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

Leadership Indicators

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

Details of negative social impact identified	Corrective action taken
NA	NA

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

State	Aspirational district	Amount spent (in ₹₹)
NA	NA	0

LI-3.a. Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalised/vulnerable groups? (Yes/No) - No

LI-3.b. From which marginalised/vulnerable groups do you procure? - Not Applicable

LI-3.c. What percentage of total procurement (by value) does it constitute? - Not Applicable

LI-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:

Intellectual property based on traditional knowledge	Owned/Acquired (Yes/No)	Benefit shared (Yes/No)	Basis of calculating benefit share
NA	0	0	0

LI-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
NA	NA	NA

LI-6. Details of beneficiaries of CSR Projects:

S. no.	CSR project	No. of persons benefitted from CSR Projects	% of beneficiaries from vulnerable and marginalised groups
1	Eradicating hunger, poverty and malnutrition	Not Ascertainable	100%
2	Promoting healthcare including preventing health care	Not Ascertainable	100%
3	Promoting education and vocational skill	Not Ascertainable	100%
4	Protection of heritage, art and culture	Not Ascertainable	100%
5	Protection of environment and animal welfare	Not Ascertainable	100%
6	Contributions to Indian Institute of Technology (IITs)	Not Ascertainable	100%
7	Promotion of sports	Not Ascertainable	100%

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

Essential Indicators

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

Customer Feedback Management

We continuously gather and utilize feedback from customers to align with their requirements. Our process efficiently manages customer complaints regarding products and services. Typically, complaints are first received by the respective field engineer and then escalated to the Quality Assurance Controller for thorough investigation. When feasible, samples are collected and analyzed to determine the causes of issues. Root cause analyses are conducted for all complaints, and corrective actions are promptly implemented. Resolutions are communicated back to customers through our field engineers, ensuring customer satisfaction.

Measuring Customer Satisfaction

We have implemented a robust system to monitor customer perceptions of our products. Feedback is systematically collected to cover various aspects of our operations. Key attributes evaluated include delivery timelines, product performance, and after-sales service. Customer satisfaction levels are graded on a scale from 1 to 4. Using a weighted average method, we compute the Customer Satisfaction Index (CSI) annually. For the latest reporting period, our CSI score stood at 97%.

EI-2. Turnover of products and/services as a percentage of turnover from all products/service that carry information about:

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

	2023-24			2022-23
	Received during the year	Pending resolution at end of year	Remarks	Received during the year	Pending resolution at end of year	Remarks
Data privacy	0	0		0	0
Advertising	0	0		0	0
Cybersecurity	0	0		0	0
Delivery of essential services	0	0		0	0
Restrictive trade practices	0	0		0	0
Unfair trade practices	0	0		0	0
Other	0	0		0	0

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

Category	Number	Reasons for recall
Voluntary recalls	0	0
Forced recalls	0	0

EI-5. Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy - Yes, we have distinct copies of our cybersecurity framework/policy, titled as follows:

AIAIT_Network_Management_Policy_01.pdf

EI-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

EI-7. Provide the following information relating to data breaches

Number of instances of data breaches along-with impact - Nil
Percentage of data breaches involving personally identifiable information of customers - Nil
Impact, if any, of the data breaches - NA

Leadership Indicators

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

Information is available on our website at: https://aiaengineering.com/

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

While our products are inherently safe, we provide SDS (Safety Data Sheet) upon request along with the consignment, ensuring transparency and peace of mind for our customers.

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

Through efficient e-mail correspondence and direct communication facilitated by our field engineers.

LI-4. Does the entity display product information on the product over and above what is mandated as per local laws? (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? (Yes/No)

Our product packaging includes essential customer information like dimension and weight, among others. As our products, like grinding media in ball form and other alloy mill castings, are mechanical components made of metallic materials, they inherently pose no hazards in their original form. Therefore, they do not necessitate special handling or storage requirements. However, we provide Safety Data Sheets (SDS) with consignments upon customer request. Furthermore, we actively conduct customer satisfaction surveys to ensure continuous improvement

Corporate Overview

Statutory Reports

Financial Statements

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

Indexing

II-16. Details of business activities (accounting for 90% of the turnover):

Description of Main Activity

Description of Business Activity

% of Turnover of the entity

II-17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

Product/Service

NIC Code

% of total Turnover contributed

III-18. Number of locations where plants and/or operations/offices of the entity are situated:

III-19. Markets served by the entity:

a. Number of locations

IV-20. Details as at the end of financial year a. Employees and workers (including differently abled):

IV-20. Details as at the end of financial year: b. Differently abled employees and workers:

IV-21. Participation/inclusion/representation of women

No. and percentage of females

Board of Directors

9

Total (A)

3

No (B)

33.33%

% (B/A)

Key Management Personnel

4

Total (A)

0

No (B)

0.00%

% (B/A)

IV-22. Turnover rate for permanent employees and workers. (Disclose trends for the past 3 years)

V-23. (a) Names of Holding/Subsidiary/Associate Companies/Joint Ventures

VI-22. (i).

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

Yes

VI-22. (ii).

Turnover (₹ in Lakhs)

₹ 4,14,394.99 Lakhs

VI-22. (iii).

Net worth (₹ in Lakhs)

₹ 6,45,583.58 Lakhs

VII-25. Complaints/grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Policy and management processes

Governance, leadership and oversight

Essential Indicators

Segment

Total number of training and awareness programmes held

Topics/principles covered under the training and its impact

Percentage of persons in respective category covered by the awareness programmes

Board of Directors

4

60%

Key Managerial Personnel

4

100%

Employees other than BoD and KMP

190

69.4%

Workers

189

34.8%

Leadership Indicators

Total number of awareness programmes held

36

Topics/principles covered under the training

ESG - P-1, P-2, P-3, P-5, P-6

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

3.7

Essential Indicators

R&D

Current Financial Year

Previous Financial Year

Details of improvements in environmental and social impacts

Capex (₹ in crores)

Current Financial Year

Previous Financial Year

BUSINESS RESPONSIBILITY &
SUSTAINABILITY REPORT