Corporate Overview

Financial Statements
Statutory Reports

Environment, Social and Governance Report

About the Environmental Social and Governance Report

This is AIA’s (AIA Engineering Limited) second Environmental Social and Governance Report. It aims to communicate the company’s strategy and approach toward sustainability. This report is prepared annually and elucidates the company’s progress on material sustainability matters to AIA’s key stakeholders, viz. customers and investors. It helps us to communicate our corporate strategy and its alignment with our vision, mission, key activities, and outcomes.

THE REPORT IS PREPARED BASED ON THE SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) AND GLOBAL REPORTING INITIATIVE (GRI) STANDARDS. THE REPORT IS ALSO ALIGNED WITH THE UN SUSTAINABLE DEVELOPMENT GOALS (SDGS).

The scope of this report is limited to AIA’s Manufacturing Plants in India.

Stakeholder Engagement

A stakeholder is an entity or individual that can reasonably be affected by the Company’s activities, products, and services, or whose actions can reasonably affect the ability of the organisation to successfully implement its strategies and achieve its objectives. We strive to develop strong relationships with our key stakeholders to provide long-term value and sustainable growth. Continuous, ongoing, strategic and need-based engagement with stakeholders is a business prerequisite. Inputs from stakeholders also give us an insight into risks, opportunities, and future outlook.

Engagement Process

To achieve positive and effective stakeholder engagement, we follow a three-step process. The management gathers inputs through direct and indirect engagement with different stakeholder groups. The inputs thus gathered are incorporated into our decision-making process, translating into continuous improvement.

  • Identification
  • Prioritisation
  • Engagement
Employees
  • Why they are important

    The employees are our power. We are developing a workforce to meet the current and future needs of our customers. A collaborative effort between employees and their supervisors provides opportunities for growth and performance-driven culture for delivering the right products and services to customers.

  • Stakeholder priorities
    • Occupational Health & Safety
    • Training and Development
    • Employee Engagement Practices
  • Frequency and mode of engagement
    • Monthly, half-yearly, and need-based
    • Performance appraisal
    • Emails and circulars
    • Health, Safety, and Environment (HSE) committee meetings and safety alerts
    • Training and awareness
    • Forums like Kaizen/5S
Customers
  • Why they are important

    Customers are important as they are the direct users of our products. Customer feedback is important as it helps us in maintaining brand reputation and steady cash flows. It is critical to ensure customer satisfaction.

  • Stakeholder priorities
    • Product Quality
    • Climate Change
    • Occupational Health & safety
    • Water Management
    • Waste Management
    • Employment Practices
    • Human Rights
  • Frequency and mode of engagement
    • Continuous, on-going, and need-based
    • Customer satisfaction index
Investors
  • Why they are important

    Investors help us ensure proper deployment of capital and guide us on proper utilisation of funds. By forging a strong investor relationship, we can maintain a loyal shareholder base, enhance long-term shareholder value, lower the cost of capital, and build long-term credibility with them. They also help in enabling our long-term growth and expansion plans.

  • Stakeholder priorities
    • Business Ethics and compliance
    • Strong Governance and Risk Mitigation
    • Climate Change
    • ESG Performance
    • ESG Disclosures
  • Frequency and mode of engagement
    • Quarterly, annual, and need-based
    • Annual general meetings
    • Quarterly earnings calls
    • Presentation and investor conferences
    • Regular disclosure to stock exchanges
    • Updates on the Company website
Government & Regulators
  • Why they are important

    We engage with statutory/ regulatory bodies like the stock exchanges, tax departments, SEBI, and pollution control boards to ensure compliance with the applicable regulations.

  • Stakeholder priorities
    • Business Ethics and Compliance
    • Corporate Social Responsibility
    • Anti-corruption
  • Frequency and mode of engagement
    • Monthly, quarterly, annually, and need-based
    • Emails
    • Progress and performance reports
    • Accident incident reports
    • Returns under applicable laws
communities
  • Why they are important

    Active engagement allows us to identify community needs and measure impact and outcomes of our CSR interventions. Engagements at grass-root level have enabled us to forge long-lasting relationship with society in the areas we operate.

  • Stakeholder priorities
    • Livelihood and support
    • Hygiene and sanitation facilities
    • Healthcare facilities
    • Education
  • Frequency and mode of engagement
    • Need-based and on-going
    • Community meetings and visits
    • Interaction with local bodies
suppliers & vendors
  • Why they are important

    We believe in trust and long-term partnerships with our vendors and suppliers. Our operations are dependent on the timely availability of raw materials and services. These, in turn, have a material impact on the efficiency of the production process.

  • Stakeholder priorities
    • Payment terms
    • Fair and transparent dealing
    • Safety system and performance
  • Frequency and mode of engagement
    • Continuous
    • Quarterly performance review
    • Supplier feedback

Material ESG Priorities

Material topics are topics that have the potential to significantly determine a Company’s performance.

We strive to identify and respond to current and emerging environmental and social topics that may have an impact on AIA’s business. These material ESG matters give us a better understanding of the impact of our activities and how our performance may be impacted by the stakeholders. Effective management of these material issues enables us to drive long-term value for our investors, customers, and other stakeholders.

Materiality Assessment

Materiality assessment allows us to better understand the perspectives of stakeholders’ groups on important materiality issues. We follow a structured 4 step process for determining AIA’s material issues.

In the reporting year, climate change emerged as a high priority for customers and investors alike. We, therefore, moved it from significant to major priority for stakeholders. In response to this, we have increased the scope of reporting on climate change to include all the manufacturing plants in India. We have also been taking various steps and initiatives to make a more robust strategy for management of AIA’s Material ESG Priorities. Waste Management and Circular Economy were shifted from major to significant priorities for stakeholders.

Identification & Prioritisation

A laundry list of ESG topics based on customer and investor needs was developed. These were further prioritised based on customer and investor priorities for the year.

Analysis

They are analysed using AIA’s priorities and future strategy. They are also aligned with the SEBI’s BRSR requirement. They are also mapped against AIA’s Risks.

Determining KPIs

We developed KPIs for monitoring and tracking progress and for measuring the impact of AIA’s activities.

Reporting

We use the SASB Standards and GRI Standards to report performance on an ongoing basis.

Material Matters

  • Social
  • Environmental
  • Governance
Importance to Stakeholders Moderate Significant Major

Waste & Circular Economy

Water

ESG Risks

Health & Safety

Climate Change

Energy Management

Community Impacts

Human Rights

Training & Development

Anti-competitive behaviour

Anti-Bribery & Anti-corruption

Business Ethics & Integrity

Customer Relations

Compliance

Anti-Discrimination & Diversity

Importance to AIA Moderate Significant Major

Ethical Governance

Corporate Governance is meeting our strategic goals responsibly and transparently while being accountable to our stakeholders. We are committed to maintaining high standards of ethics, corporate governance, honesty, and accountability, aligned with our vision and values, in all aspects of our business. We are equipped with a robust governance framework that considers the long-term interest of every stakeholder with a commitment to integrity, fairness, equity, transparency, accountability, and values.

We always strive to achieve optimum performance at all levels by adhering to good Corporate Governance practices, such as:

  • Fair and Transparent business practices
  • Effective management control by the Board
  • Adequate representation of Promoters and Independent Directors on the Board
  • Monitoring of executive performance by the Board
  • Compliance with applicable regulations
  • Tax transparency

Our Board of Directors (Board) is actively involved in ensuring that we have the right strategy, policies, and an effective risk management process to identify growth opportunities and deliver long-term value for the Company and its stakeholders.

Board of Directors

The Board of Directors is primarily responsible for the oversight of management, strategy, and business affairs. We are spearheaded by a competent, knowledgeable, and committed Board of Directors. The Board provides strategic guidance and independent views to the Company’s senior management.

  • 9

    Total Board Members
  • 5(56%)

    Number and Percentage
    of Independent Directors

  • 6:3

    Male Female Ratio

List of Directors as on 31 March, 2022

Sr. No. Name of Directors Date of Appointment Designation
1 Mr. Rajendra S. Shah 15 March, 2005 Chairman, Independent Director
2 Mr. Bhadresh K. Shah 11 March, 1991 Managing Director
3 Mr. Yashwant M. Patel 12 November, 2010 Whole-Time Director
4 Mrs. Khushali Samip Solanki 7 November, 2014 Woman Director
5 Mrs. Bhumika Shyamal Shodhan 7 November, 2014 Woman Director
6 Mr. Sanjay Shailesh Majmudar 7 May, 2007 Independent Director
7 Mr. Dileep C. Choksi 27 January, 2014 Independent Director
8 Mr. Rajan Ramkrishna Harivallabhdas 14 May, 2015 Independent Director
9 Mrs. Janaki Udayan Shah 26 March, 2019 Independent Woman Director

Committees of the Board

The Board Committees plays a vital role in ensuring sound Corporate Governance practices. The Committees are constituted to handle specific activities and ensure speedy resolution of the diverse matters. The Board Committees are set up under the formal approval of the Board to carry out clearly defined roles. For better governance and accountability, the Board has constituted the following Committees.

Ethical Business Conduct

Transparency and accountability form the bedrock of Governance. Ethical Business Conduct is an essential priority for the Company. Timely and accurate disclosure of information regarding the Company’s position and performance to the stakeholders is an important part of corporate governance. All our Board Members, senior executives, and employees are made aware of the Code of Conduct (CoC). These members are also required to sign the CoC annually, as a part of the annual compliance report.

Risk Committee

CSR Committee

Audit Committee

Nomination and Remuneration Committee

Stakeholder Relationship Committee

Avoidance of Conflict of Interest

We follow the Model Code of Conduct for the Directors/Designated Employees of the Company for the prevention of Insider Trading. The said Code of Conduct for prevention of the Insider Trading has also been amended from time to time in line with the amended Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations 2015 in this regard. Training on code of conduct is imparted periodically.

Governance of Climate and ESG

Strong ESG performance directly leads to economic performance and long-term value creation for our stakeholders. The CSR Committee and the Risk Management Committee oversee the implementation, monitoring, and reporting of sustainability, ESG, climate-related issues and performance, along with CSR policy and its implementation. The governance structure, starting from the Board of Directors to the senior management down to the employees is developed to make ESG systematic and intertwined to the business decisions.

ESG and climate change agenda is steered as follows:

ESG Committee

The ESG committee is chaired by the Managing Director, Mr. Bhadresh Shah, and Whole-Time Director, Mr. Yashwant Patel. Other members include functional leaders representing finance, legal, operations, risk, and procurement. The committee meets every quarter to develop and review the agenda for ESG and climate change.

The ESG committee is responsible for the overall vision and direction of ESG-related matters. It reviews the progress of the Company’s sustainability and climate change agenda, approves the ESG budget, plans and allocates resources to the ESG working group, and identifies the KPIs at regular intervals. The committee also reviews the compliance with applicable regulations, voluntary standards and norms, and performance in relevant aspects of sustainability. It also reviews and approves all public disclosures on ESG, including the ESG Report.

ESG Working Group

One level below the ESG committee, the ESG Working Group, operates in a cross-functional manner. The ESG Working Group is chaired by the Corporate Advisor. It consists of a team of members who represent different functional units and meet every month to implement the ESG strategy and agenda.

The Working Group engages with the stakeholders, regulatory bodies, and rating agencies that are relevant to sustainability and identifies the material ESG matters and risks. It develops the ESG charter, and maps the roadmap of the Company to formulate long-term and short-term ESG plans. It monitors and tracks ESG data for the identification of KPIs and provides all the information for the ESG reports. The committee also monitors compliance with all applicable environmental regulations along with customer and investor requirements. The other responsibilities of the Working Group Committee are to develop a response to Carbon Disclosure Project (CDP) and fulfill its reporting requirements. The Working Group also responds to audit requests from customers and organises training for employees on various ESG related matters.

ESG Governance Framework

We have the best-in-class policy portfolio keeping in mind the interest of the Company, Board of Directors, shareholders, customers, and other stakeholders. Our Board of Directors and Employees provide policy directives for business actions and outcomes to ensure that the aspirations and the best interest of its stakeholders are kept foremost.

The policy portfolio for the senior management as well as the employees is listed below. The detailed policies can be viewed at http://www.aiaengineering.com/finances/policy.php

ESG Risk Management

AIA recognises that risk is inherent to our business and effective risk management is critical for the protection and creation of value for stakeholders. We believe that effective risk management is fundamental to good corporate governance. The management believes that sustainability in business operations can only be derived by identifying probable business risks and identifying ways to mitigate them proactively. The Risk Management Committee is responsible for identifying and monitoring environmental, social, and governance risks like climate change, bribery, human rights, etc. The key risks and mitigating measures are placed before the Board twice a year as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Company has a risk management framework that helps evaluate, prioritise, and escalate the risk to the highest governing body in the organisation. The framework is implemented across the Company. It enables all the employees to raise any kind of risk associated with their work functions. It also defines and sets appropriate risk limits and controls to monitor risks and ensure the management of risks.

The Audit Committee and Risk Management Committees are supported by the finance team and experts who assure that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial and non-financial risks are identified, measured, and managed as per the Company’s policies.

Economic, Environmental, and Social Risks and Opportunities and Financial Impacts

Risk Impact Mitigation Measures

Employee Productivity due to Climate Change
  • There has been a systemic increase in temperatures during the summer months of April – July. This causes a drop in employee productivity in the melting and heat treatment areas and the subsequent drop in production during those months.
  • Improved working conditions and initiatives to improve air circulation at the plants.

Economic Impact due to Supply Chain Disruptions

  • Because of disruptions in the global supply chain, the import of scrap has declined leading to an increase in the cost and non-availability of scrap.
  • An increase in shipping cost leads to an increase in WIP inventory and an increase in stock levels.
  • Delays in shipping because of global shipping disruptions can lead to penalties for late delivery of the product. Need for the greater holding of the inventory at the distribution centres.
    		•
  • Broaden the scope and horizon of procurement of local scrap.
  • Plan for higher WIP and inventory level of raw material and finished product.
    		•

    Climate-related Disclosure Requirements driven by Customer Demand
  • Our customers are in energy-intensive sectors – mining, cement, and aggregate. They have climate-related disclosure mandates imposed on them by Governments and other stakeholders. Climate action is passed on to AIA as a supplier.
  • Institutional investors are also asking for information on the AIA’s impact on climate change by way of feedback and questionnaires.
    		•
  • We have developed a Climate Strategy which includes a reduction in Greenhouse Gas (GHG) emissions of our activities as well as the category of grinding media and castings that we manufacture.
  • We have also participated in the CDP disclosure since 2020-21 and will do so annually.
    		•

    Net Zero Ambition of Customers
  • Some of our global customers have taken targets to be Net Zero Carbon as per the National Commitments of their home countries. As a critical supplier to our customers, AIA is required to have a climate strategy with a defined roadmap and GHG emission reduction targets.
  • We see an opportunity in terms of reducing the energy consumption of our products which will allow us to support the customers in meeting their commitments.
    		•

    Anti-bribery & Anti-corruption (whistle-blower)

    Bribery and corruption can be a risk to our brand, reputation, and business growth. AIA is committed to fighting corruption in all its forms – both direct and indirect. We have adequate checks and balances in place to ensure that there is no corruption across our business activities and operations. The Whistle-Blower Policy helps ensure effective enforcement of anti-corruption practices across the Company.

    GRI 205-1: Operations assessed for risks related to corruption

    The Whistle-Blower Policy applies to the Board of Directors, Management, employees, and business partners of AIA and Vega Industries (Foreign Subsidiaries). As part of our enterprise risk assessment, we monitor activities that may pose a risk of direct or indirect forms of corruption in our business practices across the value chain.

    GRI 205-2: Communication and training about anti-corruption policies and procedures

    As part of the prevention, identification, and detection of Anti-bribery and Anti-corruption issues, training is conducted for all employees at the time of induction. Dissemination of this policy for new hires is carried out at the time of induction. The policy is communicated to all employees.

    The Company’s zero-tolerance approach to bribery and corruption is also communicated to all suppliers, contractors, and business partners at the outset of the Company’s business relationship with them and as appropriate thereafter.

    GRI 205-3: Confirmed incidents of corruption and actions taken

    In the reporting year, there were no incidents of bribery and corruption.

    Environmental Stewardship

    Human activity, without consideration of the impact on the planet, has led to adverse effects like climate change, extreme water stress, raw material availability, biodiversity loss, etc. Protection of the environment is, therefore, a priority for AIA. It is also expressed as a priority by our investors and customers.

    AIA promotes a philosophy of environmental stewardship. We are committed to demonstrating environmental responsibility across our operations and activities. Environmental metrics are managed through a defined framework embedded into all our operations. The Environment, Health and Safety (EHS) Department undertakes a periodic review and updates the policy, monitors its effectiveness, and reviews its implementation.

    Management Approach

    Our mandate is to go beyond compliance and adopt the precautionary approach of ‘Do No Harm’. Environmental risks have been integrated into the enterprise risk management process. To ensure continued action towards environmental stewardship, we formulated AIA’s Environmental Policy, Water Policy, Waste Management Policy, and Climate Change and Energy Policy. These policies apply to all manufacturing plants with the responsibility of its implementation with the respective plant heads. Successful implementation is overseen by the plant heads and discussed each quarter with the Risk Management Committee. Plants with the highest environmental impact, located at Moraiya and Kerala GIDC, are certified for Environment Management System - ISO 14001:2015 and Occupational Health and Safety Management System - ISO 45001: 2018.

    Environmental Compliance

    AIA is committed to minimise the adverse impact of our activities and operations on the environment. There is a robust management process for tracking compliance with applicable environmental regulations. We are compliant with all EHS regulations stipulated under the Water (Prevention and Control of Pollution) Act, The Air (Prevention and Control of Pollution) Act, The Environment Protection Act, and the Rules thereunder. We have carried out an Environmental Impact Assessment for the key manufacturing plants in Kerala (K1) and Moriya (M1).

    GRI 307-1: Non-compliance with environmental laws and regulation

    In the reporting year, there were no fines, penalties, or show cause notices for non-compliance with applicable environmental regulations at any of our plants.

    Climate Change

    Climate change’s direct and cascading effects are well documented and universally acknowledged. They are being felt all over the world, including in India. Direct and indirect impacts of climate change on businesses and society are being experienced by all. Climate change acts as a risk multiplier, exacerbating existing environmental and ecosystem challenges such as limited availability and steady depletion of natural resources such as biodiversity. It is a critical focus area for AIA and is also expressed as a priority by AIA’s investors and customers. To understand the impacts of our operations on the climate, we calculated the GHG emissions (scope 1 and scope 2) from operations at all our units in Ahmedabad.

    EM-IS-110a.1. Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations

    The monitoring and reporting of GHG emissions are not covered under any emission-limiting regulation and are done purely voluntarily. The total scope 1 and scope 2 emissions are tabulated below.

    Total GHG Emissions (MTCO2e) 2020-21 2021-22
    Boundary M1 and K1 All Manufacturing Plants in India
    Scope 1 12,193.87 17,244.09
    Scope 2 1,55,681.33 2,38,819.72
    Total Scope 1 + Scope 2 1,67,875.20 2,56,063.81

    EM-IS-110a.2. Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

    We have a plan to manage our scope 1 and scope 2 emissions. It focuses on improving efficiency at different stages of production and switching to renewable energy sources

    Process Efficiency

    Melting

    We use medium frequency induction furnace for all our melting operations. They rely on electricity. The closed-loop process ensures that the loss of energy and heat is minimal, helping reduce GHG emissions.

    Heat Treatment

    Direct Energy is used in the heat treatment process at all our foundry units. We have switched to Piped Natural Gas from Light Diesel Oil and C9 to reduce our Scope 1 emissions.

    We have also installed flue gas recuperates on all the gas (PNG) fired Heat Treatment Furnaces. It helps to improve furnace efficiency and recover heat from the flue gases. The waste heat recovered is used in preheating the combustion air supply to the burners.

    Energy Reduction Initiatives in 2021-22
    Sr. Head Sub-head Unit saved (KWh) Total unit saved (KWh)
    1 Effective usages of machine leading to energy savings Improved furnace coil cooling 23,040 4,85,681
    Modifying operations of certain equipment’s from manual to auto mode 1,60,361
    Efficient usages of utility equipment 1,13,100
    Interlocking hydraulic motor in heat treatment 28,860
    Efficient temperature settings of chiller 1,60,320
    2 Technology upgradation leading to energy savings Replacing conventional sodium vapour light by LED light 2,76,524 11,33,400
    Using 30 KW fan in heat treatment tempering process instead of 200 KW blowers 21,200
    Installation of VFD’s in FES 28,316
    Operation of certain product handling equipment & cooling tower by VFD 28,860
    3 Improved operational & maintenance efficiency leading to energy savings 20 units/ton of LMC reduced in grinding media plant by efficient usage of furnaces 23,31,687 23,31,687
    4 Improved temperature & pressures settings in coil cooling pump & compressor Improved temperature & pressures settings in coil cooling pump & compressor 5,41,678 5,41,678
    Total unit saved per annum (KWh) 44,92,446

    Renewable Energy

    The systemic increase in the percentage of renewable energy in our total energy mix is our medium to long-term strategy to address our scope 1 and scope 2 emissions. AIA has installed 11 Wind Energy Turbines at the Kutch and Jamjodhpur sites having total capacity of 24.3 MW of renewable energy. In 2021-22, AIA was able to meet 17 % of the Company’s total (Group’s all plants) electricity requirement through renewable energy sources.

    Total Energy Use Unit 2020-21 2021-22
    Boundary All AIA group plants
    WE Turbine Nos. 09 11
    Installed Capacity MW 18.9 24.3
    Generated Power MWH 50,900.92 60,739.11
    % of Total Electricity req. % 17 17
    • 17%

      Total electricity requirement
      through renewable energy
      sources in 2021-22

    Air Emissions

    The Company takes the necessary measures to check and prevent pollution. All stacks are ≥ 30 meters in height and are linked to an online stack monitoring system for oxides of Sulphur (Sox), oxides of Nitrogen (NOx), and Particulate Matter. Apart from this, the Company has a contract with a third-party agency to monitor air quality as per the ambient air quality standards stipulated by the State Pollution Control Board (SPCB). The emissions are reported to SPCB as prescribed under the Consent to Establish and Operate. The Dust Extraction (DE) system or Fume Extraction (FE) system is linked to the production equipment functioning, failure in any of these will trigger an alarm that automatically shuts down production.

    EM-IS-120a.1. Air emissions of the following pollutants: (1) CO, (2) NOx (excluding N2O), (3) SOx, (4) particulate matter (PM10), (5) manganese (MnO), (6) lead (Pb), (7) volatile organic compounds (VOCs), and (8) polycyclic aromatic hydrocarbons (PAHs)

    Air Emissions SO2 NO2 PM
    2020-21 (MT/Year) 21.17 6.67 174.64
    2021-22 (MT/Year) 14.5 3.75 120.67

    * We do not release significant CO, manganese oxide, lead, volatile organic compounds, and aromatic hydrocarbons into the atmosphere.

    Energy

    EM-IS-130a.1. (1) Total fuel consumed, (2) percentage coal, (3) percentage natural gas, (4) percentage renewable

    Direct Energy Unit 2020-21 2021-22
    Boundary M1, K1 AIA Group all plants
    Diesel KL 121 2,19,407
    LDO KL 85.712 10.191
    PNG SCM 77,87,681 1,25,56,842

    EM-IS-130a.2. (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable

    Indirect Energy Unit 2020-21 2021-22
    Boundary M1, K1 AIA Group all plants
    Grid Electricity Consumption MWH 2,25,914.905 3,63,042.554
    Renewable Energy Generated MWH 38,347.032 60,739.116
    Total MWH 1,87,567.873 3,02,303.438

    *Grid Electricity Consumption - Renewable Energy Generated = Net Energy Consumption = 3,02,303.438

    Water

    Water is a fundamental human need and essential for maintaining ecological balance. Water scarcity is a growing problem, which requires global attention and action. The critical groundwater resources, which account for 40% of India’s water supply, are being depleted rapidly. Water stress levels may further worsen due to risks posed by climate change. Recognising the criticality of water as a resource, AIA remains committed to focusing on water management beyond the bounds of our operation. Our strategy toward responsible management of water includes reducing the per capita consumption of water through operational efficiency, recycling and reuse of water, and installation of rainwater harvesting to recharge groundwater levels.

    At AIA, the industrial use of water is for cooling the furnace coils, in the moulding process, and the cooling towers. The other activity where water is used includes canteens for drinking, sanitation and gardening.

    Water Management Strategy

    We recognise the fact that consuming water most efficiently is critical. Water security is one of the most significant global risks in terms of impact. We recognize the growing concern about the scarcity of freshwater resources and strive to implement sustainable water management techniques.

    Monitoring and Tracking

    The Company monitors and analyses our water consumption patterns to ensure an overall water balance and to capture spikes in water consumption, if any. Meters are installed for the bore well. We monitor total water withdrawal as well as the groundwater level continuously. The data is recorded in a logbook. Water meters have been installed on the main pipeline as well as at the user-end across all units. The records of water consumption are being maintained. We also monitor wastewater discharge into the Sewage Treatment Plant (STP). It has helped us to bring down the freshwater requirement in our operations. The Company consumed 2,70,693 KL/Annum of water during the 2021-22.

    Internal Audits and Training

    Training is conducted on water saving and conservation for employees and workers from time to time. In addition, an annual water audit is conducted at all our plants. Audit observation and recommendation are implemented without bias and on priority.

    Rainwater Harvesting

    The Company has installed a rainwater harvesting system to recharge groundwater. Rooftop and run-off rainwater is being recharged through four recharge wells at K1 Plant and two recharge wells at M1 plant along with a pre-filtration system within the plant premises. In addition, three recharge wells are constructed outside the premises - one at Chiloda Village and two at Moraiya Village to recharge groundwater. These recharge wells replenish the groundwater in the area where we operate.

    Zero Water Discharge

    Complete Zero Liquid Discharge (ZLD) is maintained at all the plants. Some initiatives taken to reduce water consumption are

    • A dry-type cooling tower is installed at Kerala GIDC Plant which reduces blow down drastically.
    • The cooling tower blowdown is being reused for sand mold preparation, and sand/slag cooling purpose.
    • Greywater/sewage are treated in the STP plant. Treated water is reused in gardening, toilet flushing, and cooling towers.
    • Automatic/spring-operated water taps are being used to reduce the wastage of potable water.
    • At some plants, waterless urinals are installed.

    EM-IS-140a.1. (1) Total freshwater withdrawn, (2) percentage recycled, (3) percentage in regions with high or Extremely High Baseline Water Stress

    Total Water Withdrawal 2020-21 2021-22
    Boundary M1, K1 AIA Group all plants
    Ground Water 1,97,373 KL 2,23,026 KL
    Surface water - -
    Third party water - 47,667 KL
    Water is withdrawn from high-stress regions Nil Nil
    Total 1,97,373 K 2,70,693 KL
    Water Recycled 57,244 KL 69,344 KL
    % water recycled 29.0 KL 25.6 KL

    Both the withdrawal of groundwater from the bore well and the used of third-party water are less than the quantity consented by the State Pollution Control Board (SPCB).

    • 2,70,693KL/Annum

      Water Consumption for 2021-22

    Waste & Circular Economy

    As the world shifts toward a circular economy, businesses must take ownership of and manage the waste generated by their operations. Waste generation in India has risen considerably due to its increasing population, rapid urbanisation, and rising consumption levels. However, the infrastructure required for collecting and processing the waste continues to lag. This, along with inadequate at source segregation, has culminated in a massive waste management problem.

    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 use of recycled material and reuse of waste by us or other companies through co-processing of foundry waste and other waste as alternative raw material or fuel. It presents opportunities for environmental stewardship and helps us manage raw material price-related risks.

    The Company takes waste management seriously and works toward reducing, reusing, and recycling its waste wherever possible. We optimise the use of key resources including minerals and 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
    1.1. Reuse of Foundry – Dust/Sand & Plastic to make Eco-friendly Bricks/Paver blocks

    Paver blocks and bricks are manufactured by AIA Engineering Limited by using foundry dust, sand, and plastic waste. This is a good way to use industrial waste like sand, plastic, and foundry dust.

    A lot of research was carried out which resulted in the possibility of bonding the sand/foundry dust with plastic to make ‘Eco-friendly - Silica Plastic Blocks/Bricks’ – a sustainable building material that is made from recycling foundry dust/sand waste (80%) and shredded plastic waste (20%) from pp. bags). AIA approached a Gujarat-based brick-making machine manufacturer to get a customised machine /plant that could make paver blocks by reusing silica, foundry dust, and plastic waste.

    AIA has invested ₹ 0.5 Crores to erect a captive brick-making plant that can produce 200 Nos. of Bricks/Paver blocks per day by using in-house foundry dust/sand and plastics waste. These bricks have more strength than the conventional red bricks and can be used to construct footpath/pedestal ways, compound walls, sanitary facilities like toilets & washrooms, and decorative structures in schools, penchant, and personal buildings. The paver blocks have a strength equivalent to M 35 of cement paver blocks and can be used for road making for heavy commercial vehicle usage.

    1.2. Reuse of Foundry Sand in Cement Kiln - Co-processing

    Waste generation is an inadvertent outcome of foundry operations, so it becomes necessary to deal with its repercussions. Discarded moulding sand from the foundries is a solid waste and a by-product of the production process. We have signed an MOU with Ambuja cement and Geocycle, to provide a sustainable business solution for the sand waste generated. The waste discarded sand is used in cement kiln technology (co-processing) in a manner that ensures regulatory compliance, clubbed with the highest standards in OH&S. Ambuja cement is consuming waste generated by AIA‘s safely in the Company’s cement kilns at the plant located at Kodinar, Dist. Gir Somnath, Gujarat.

    Sustainable Waste Disposal & Certificate:

    For each consignment of waste co-processed at Ambuja Cement /Geocycle, they provide a certificate of disposal mentioning the quantity of waste consumed by them.

    Categories of Waste Generated
    Hazardous waste

    Used oil, waste residues containing oil, discarded contaminated container & liner, and cotton waste as cleaning material.

    Non-hazardous waste

    Waste foundry sand, slag, refractory waste, and commercial waste like paper, wood rubber, etc.

    Other waste

    E-waste, batteries waste, bio-medical waste, canteen waste, STP waste.

    Hazardous Waste

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

    • The waste residues containing oil i.e., oily sludge generated at our plants are disposed of in SPCB approved CHWIF (Incineration) and transportation, storage, and disposal facility.
    • We have a MoU with a 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.
    • Biomedical waste from OHC is being disposed of with a registered biomedical waste incineration facility.
    Non-hazardous Waste

    Sand Waste – The Company has integrated mechanical and thermal reclaimer to recycle its moulding sand. This has helped reduce the requirement for silica sand by 80%. The waste sand generated is used in co-processing in the cement kiln/Bricks & Paver block making.

    Slag – Either sold to metal recycler vendor or reprocessed in our captive slag processing plant for metal recovery and recovered metal is reused as raw material in foundry operations.

    Runner and raiser – Generated in the manufacturing of grinding media and are being reused as raw material in foundry operation.

    The fine sand dust - Used in back filling of low-lying areas, at construction sites, for bricks & Paver block making, etc. We have our brick-making plant where dust and PP bags from packaging are reused.

    Canteen waste/organic waste – Converted into compost manure by an organic waste composting machine or disposed of through a mobile kitchen waste management facility. Organic compost is being used in the green belt and nursery.

    STP sludge – Used for gardening as compost Manure, HT Refractory materials including refractory bricks etc. are sold to designated vendors. Commercial waste likes paper, wood, waste rubber (conveyor belts, tyres), etc. are also sold to the vendors.

    EM-IS-150a.1. Amount of waste generated, percentage hazardous, percentage recycled

    Non–Hazardous

    Method of Handling

    Waste Generated

    2020-21

     

    2021-22

     

     

    M1, K1

    All AIA group plants

    Moulding Sand (MT)

    Co processing

    20,264

     

    15,684

    landfill

    –

     

    60,280

    Slag (MT)

    In-house processing for metal recovery and rest used in road making

    –

     

    9,582

    Sale to recycler

    13,289

     

    2,769

    Hazardous

     

     

     

    26.45

    Used Oil (MT)**

    Recycling

    21.13

     

    26.45

    Waste residues containing oil (MT)

    Incineration

    156.25

     

    20.61

    *MS Barrel/Drums

    Decontamination
    and reused

    1,026 Nos.

     

    5.99 MT

    **Plastic Containers 

    1,812 Nos.

     

    208.1 MT

    *100% Reused, ** 100% Recycle

    Creating Value for the Employees

    Our workforce is our greatest asset. It is the professional expertise and industrial know-how of our people, coupled with their dedication that drives AIA to continued excellence in a dynamic environment.

    We create a healthy and inclusive environment and invest in talent development. Management strategies are centered on recruitment, retention, reward, and rejuvenation of our employees. Our people are at the center of all our business operations. We promote a culture of responsibility, diversity, and innovation. We attract and nurture the right talent and ensure professional growth and personal well-being of our employees. Every employee undergoes regular, formal performance and career development reviews and we encourage leaders to have frequent informal performance conversations with their team members. Ensuring the best standards of occupational health and safety is of utmost importance to us.

    Employee Value Proposition

    Employee Loyalty

    We rely on employee loyalty for business sustainability and growth. Employee loyalty and retention are key business imperatives. They also help reduce attrition and save on costs of hiring and training new employees. We believe in developing in-house talent, and hence, we emphasise talent development and employee loyalty through various learning initiatives and identifying competency gaps.

    Health and Safety are Our Mantras

    Employees are our biggest assets and keeping them safe is our top priority. We ensure the well-being and safety of our employees through compliance with occupational health and safety standards. Occupational Health & Safety is about the collective, conscious, and concerted efforts of bringing in behavioural change, technical up-gradation, and design interventions that make our operations safer.

    Enabling Technical Competence

    We are on a constant lookout for skilled talent and endeavour to constantly up-skill our existing talent to expand into new geographies and sectors to sustain growth. Building the technical competence of our workforce is one of the key objectives of our training and development programmes. Different training programmes are designed for employees at different levels in the organisation.

    Employee Engagement

    To make sure that our employees are engaged, connected, and motivated, AIA promotes a culture of responsibility, diversity, and innovation. We have conceptualised and implemented multiple initiatives to enhance employee engagement, thereby leading to a more productive work environment. Employee engagement is an important indicator in gauging employee satisfaction. Employees today are looking for more than a 9 to 5 job. They want to be involved in their work, enthusiastic about the organisation they work for and committed to their fellow employees.

    Our HR policies focus on improving employee engagement across the organisation. The overall performance of the Company is dependent upon the commitment to the employees and the support they receive from the HR department by way of enabling policies and focusing on employee well-being.

    Covid vaccination drive for employees and workers

    To safeguard the health of its workers during Covid-19, AIA provided vaccination to our staff and workmen. The total number of staff that received the vaccination are 1,757.

    Employee Health and Safety

    Workers’ safety is the key to unhindered operations and productivity. Our approach to health and safety is designed to create a safe, healthy work environment.

    Foundry operations consist of several hazardous processes, which can affect the health of workers as well as cause injury. The employees are exposed to high temperature, dust, and other occupational hazards and safety hazards. As a responsible corporate, AIA is cognizant of such hazards and takes preventive measures to avoid accidents and ensure that norms of safety, health, and hygiene are adhered, to build a safer and healthier work environment. It is also expressed as a priority by our investors and customers.

    Ensuring fair and safe working conditions for all employees and contract workforce as well as visitors is the basic premise on which our human resource policies and practices are built. AIA has installed high-efficiency induction furnaces with double acting suction hoods which have improved working conditions and made foundries cooler, cleaner, and less hostile workplaces.

    Disclosure 403-1: Occupational health and safety management system

    People’s safety is ensured through several levels of checks and balances throughout the organisation. Various policies, management systems, training and awareness sessions are conducted regularly. These systematically bring about behavioural change in our workforce. Our health and safety priorities are clearly articulated in our HSE Policy. With the overarching objective of ‘Zero Harm to Life’, foundries with the highest OH&S hazard are certified for an ISO 45001: 2018 & ISO 14001:2015. The principles are being applied to all the plants. There has been continued improvement in the safety culture within the Company.

    The Company seeks to minimise the EHS impacts due to the Company’s manufacturing activities. It provides safe and healthy working conditions, utilises natural and man-made resources optimally and responsibly, plus strives to ensure the sustainability of resources. The Company reports Environmental, Occupational Health and Safety performance, including the assessment of potential EHS risks associated with the operations, to the stakeholders fairly and transparently.


    Occupational health and safety objectives
    • Zero Harm
    • Minimise Unsafe Conditions and Unsafe Acts

    Disclosure 403-2: Hazard identification, risk assessment, and incident investigation

    There is a robust consultation between the Management and the employees (including worker and worker representatives) on Occupational Health and Safety. All the employees were consulted during the preparation of the OH&S Policy and procedures as well as during HIRA (Hazard Identification and Risk Assessment) process.

    Disclosure 403-4: Worker participation, consultation, and communication on occupational health and safety

    The employees, workers, and worker representatives participate in planning, establishing, implementing, and maintaining the occupational health and safety management system as well as developing the OHS audit protocol. Feedback is used in improving OHS Management System.

    The H&S team with the support of the HODs and concerned personnel determine the needs and expectation of the employees and workers. Workers, contractors, and suppliers are consulted before their roles and responsibilities are assigned to them. They are consulted when any operational changes affect their OHS Management System.

    Communication on Occupational health and safety

    We communicate information to employees and workers on matters related to occupational health and safety hazards, risks and controls, changes in procedures, if any, along with the customer requirements.

    Internal Communication

    Internal communication on EHSMS is carried out via inter office memo, display on notice board, or circulation of the copy of a particular document in EHS management system. Notice boards are used to display notices to inform employees about issues such as emergency plans and accident performance or about progress in achieving objectives and targets.

    External communication

    When required, relevant information related to OHS Management System is communicated to external stakeholders.

    Disclosure 403-5: Worker training on occupational health and safety

    AIA ensures the participation of employees and workers in Occupational Health & Safety at all levels through round table meetings, hazard Identification & elimination, assessment and reduction of risks through HIRA Register, Legal Register, and Business Strategic Plan. Other activities include toolbox talks, mock drills, internal H&S audits, OH&S review, and review of operational controls. OH&S training is organised for employees and workers.

    Disclosure 403-6: Promotion of worker health

    Regular EHS Meetings are held between management and the employees/worker representatives to discuss issues of EHS as well as overall performance (incl. management system performance). The minutes of these meetings are documented and any issues arising from these meetings, that require corrective actions, are communicated to all the employees.

    Any changes to Health, Safety and Environment policy are documented.

    Disclosure 403-8: Workers are covered by an occupational health and safety management

    All the employees, both contractual and permanent, are covered by the Company’s Occupational Health and Safety Management System. There is a fair representation of workers in the health and safety committee across all plants.

    Disclosure 403-9: Work-related injuries
    Disclosure 403-10: Work-related ill-health
    Safety Performance Grinding Media VSMS-Liner Grinding Media VSMS-Liner
    2020-21 2020-21 2021-22 2021-22
    LTIR 1.16 1.71 7.79 2.28
    LTIFR 0.70 0.69 2.97 0.91
    LTISR 18.43 1.03 14.10 4.26

    Frequency rate=No. of Accidents*10,00,000/Man Hours Work

    Severity Rate = Man Days Loss*10,00,000/Man Hours Work

    Lost Time Injury Incidence Rate =Number of Lost-Time Injuries *1,000/Average number of persons employed

    Training and Development

    The Company ensures continuous skill and competence up-gradation of all employees by providing access to necessary learning opportunities, on an equal and non-discriminatory basis.

    All employees undergo an annual performance evaluation. They are also given flexibility to shift to other roles to meet their career aspirations. If there are open positions, the Company first evaluates internal staff to fill such positions.

    The Company undertakes various exercises to promote employee morale and career development including:
    • Induction and process training is provided when new contractual workers and staff join
    • Reorientation is organised every 6 months for permanent and contractual workforce on EHS
    • Toolbox training on various safety topics to staff and workers by the safety manager
    • Training on workplace discipline, teamwork, positive attitude, communication, 5S, and ISO-QMS
    • Managerial staff and operators undergo grooming sessions to develop their capabilities through multi-skilling and role enhancement
    • External training is organised for the managerial staff on topics ranging from responsibility to communication skills and personality development

    Employment Practices

    We believe in creating a healthy and safe work environment for our people while providing world-class working conditions to our employees and creating appropriate learning & development opportunities for them. Our supportive policies encourage diversity at the workplace and create equal growth opportunities. We also provide the right platform for our workers to interact with the Management and uphold their rights.

    We take care of our employees and ensure timely payment of wages to the staff. We take cognizance of the work-life balance of our employees, especially that of our women employees. The CTCs are based on qualifications, experience, and capability of the individual. The attrition rate is < 7%, and the average year of association of employees with the Company is > 10 years.

    Employee Benefits

    AIA has always given prime importance to the Company’s employees considering them the most valuable assets of an organisation. Workplace accidents cannot be avoided or predicted. Hence, providing a safe working environment to employees is imperative. AIA is not only an employee-friendly organisation in terms of working culture but also in terms of securing risk of employees by providing various Employee Insurance Policies.

    AIA falls under ESIC Zone, so all the employees/ workers whose salary is ₹ 21,000 or below are covered under ESIC for various benefits including injury or death due to an accident while at work. AIA has also opted for Employee Compensation Insurance for contract workers as well as employees.

    For employees above ESIC, AIA has taken Group Personal Accident Policy covering Accidental death, any kind of disability, loss of earning & medical expenses to some extent, for the worldwide jurisdiction irrespective of whether the employee is on duty or off duty. In addition, AIA also has Group Term Insurance providing coverage to all the employees.

    AIA has also provided medical benefits to the employees in case of hospitalisation on account of any illness, injury, or disease. AIA also has a Group Super Top Up Policy to take care of huge expenses in severe cases of hospitalisation on account of illness, injury, or disease.

    AIA has tied up with hospitals for health check-ups of its managerial staff. Mobiles and data cards are provided to specific section of the staff based on the nature of their work. Transport facilities are provided to the staff. Loans are given to staff and workmen based on their needs. The Company provides 12 paid holidays, 12 casual leaves, and 30 privilege leaves to permanent staff and workmen at plants. Permanent and Contract workers are paid as per law, and statutory requirements such as PF, ESIC, Bonus, and Leave Salary are met. In case of emergencies, appropriate medical support or financial help is provided.

    Human Rights

    We believe that business can only flourish in societies where human rights are protected and respected. We recognise that we have a responsibility to respect human rights.

    We strive to respect and promote human rights as per the UN Guiding Principles (UNGC) on Business and Human Rights in our relationships with our employees, suppliers, and within the communities in which we operate. We strive to maintain and improve systems and processes to avoid complicity in human rights violations.

    Our human rights policy applies to all employees of the Company in permanent or contractual roles, as well as the suppliers & vendors and the local communities. Enforcement of the Human Rights Policy is the responsibility of the HR Department. Human Rights risks are overseen by the Risk Management Committee. The Company takes care to ensure that there is no child labour, forced labour, or any form of involuntary labour, paid or unpaid at any of our premises.

    AIA has established a grievance mechanism to address all concerns and complaints related to human rights impacts and violations.

    Anti-Discrimination & Diversity

    Equality, diversity, and non-discrimination are fundamental human rights and essential ingredients to a successful Company. Diversity of employees is encouraged at all levels within the organisation. It helps us to attract talent from different backgrounds, with different viewpoints and skills. This workforce diversity is taken care of at different levels of the organisation. The Company ensures that there are no discriminatory practices in the organisation on the grounds of gender, ethnicity, nationality, or age.

    The Company provides and maintains equal opportunities at the time of recruitment as well as during employment, irrespective of caste, creed, gender, race, disability and sexual orientation. The recruitment is based on their aptitude and efficiency.

    Our women employees enjoy all provisions as per statutory requirements including maternity benefits. Their safety is ensured through the Company-wide Policy on Prevention of Sexual Harassment. In the reporting year, there were no cases of Sexual Harassment reported at the workplace.

    Value Creation for Customers

    AIA is a customer-centric organisation. We are a certified ISO 9001 Company, specialising in the design, development, manufacture, installation, and servicing of high chromium wear, corrosion, and abrasion-resistant castings used in cement, mining, and thermal power generation industries. We design and develop innovative, high-quality products and process optimisation services to meet specific customer needs.

    Operational Excellence

    AIA has an organisation-wide culture of operational excellence that is built on the tenets of performance management, continuous improvement, and process excellence. Through this, we aim to improve all areas of performance, including profitability, decision-making, customer needs, partner services, human resources capabilities, and ongoing investment.

    • Performance Management
    • Continuous Improvement Mindset
    • Process Excellence
    5S, Kaizen

    Kaizen is a philosophy that focuses on gradually improving productivity by involving all employees and by making the work environment more efficient. Kaizen translates to “change for the better” or “continuous improvement”. We believe in implementing best practices covering the entire business stream. The prime objective is to remain competitive in all respects i.e., Safety, Quality, Cost, and Delivery including employee morale.

    To meet the twin objective i.e., to benefit the organisation along with all performance parameters and also to benefit the employees in terms of enhanced knowledge and exposure to best practices, our organisation has implemented initiatives like 5S, and Kaizen.

    We have adopted the Kaizen philosophy at our Moraiya and Kerala units, where we are gradually experiencing an improvement in Quality, Cost, Delivery, Safety and Employee morale. Kaizen data is compiled every month in form of Kaizen sheets. Events are organised, where Kaizen Activity teams present their Kaizen results. Their participation is recognised and rewarded.

    5S is implemented at our Moraiya and Kerala units. The entire plant is divided into 5S Zones. Each zone is owned by the zone leader and team. Each team practices 5S in a specified zone and does a self-audit daily. The monthly audit is performed by Management Representative and scoring is carried out and displayed.

    Research and Development

    At AIA, we strive to adopt ahead-of the curve technologies to ensure and maintain global performance benchmarks. We have an efficient in-house system that helps us to design cost-efficient products and projects. Our efficient systems and processes, project tracking and control mechanism detect any slippages and identify value enhancement opportunities within the project timeline.

    Customer Feedback Management

    Continuous and ongoing feedback from customers is used to align with the requirements of the customers. We have a process in place for handling customer complaints related to products and services. A complaint is normally received by the concerned field engineer which is then forwarded to Controller QA for further investigation. Wherever practicable, samples are collected and analysed to understand the reasons for failure.

    Category Type of complaint
    Serious Premature failure of parts
    Non-Serious No failure but shortfall in guaranteed life
    Unjustifiable The material is proven to be not belonging to us; A shortfall in guaranteed life due to wrong application at customer’s end

    For all sorts of complaints, a root cause analysis is carried out and appropriate corrective actions are taken. All complaints are resolved to the satisfaction of customers and the same is communicated to the customer through our field engineers.

    Measuring Customer Satisfaction

    We have a system for monitoring information relating to customer perception of the products. Feedback is obtained from customers to represent the spectrum of activities. The attributes assessed are delivery, performance of the product, and after-sales service. The performance is graded on a scale of 1 to 4. Based on feedback received, the Customer Satisfaction Index (CSI) is worked out every year based on the weighted average method. In the reporting year, the CSI score was 97 %.

    Environmental and Social Impacts of Products & Services

    We carry out a technical evaluation of the customers’ requirements and then consider ideal metallurgy for their process applications. This helps our customers to reduce the environmental impacts of their activities and operations.

    We do not manufacture any restricted chemicals or products. However, to ensure safety during transportation, handling, and use of our products, we provide Material Safety Data Sheets that list the hazard characterisation and other material safety information of the products we dispatch.

    CEMENT

    Changing impact conditions can cause conventional grinding media to either loose the shape or show sapling – thus shortening working life, increasing downtime, and increasing costs for the customers.

    Our alloys are specifically suited to different impact and abrasion conditions such as low abrasion/high impact and high abrasion/low impact.

    MINING

    Reduced downtime is critical to successful mining operations. Wear components that last longer are therefore essential. We have developed new alloys and manufacturing techniques that provide improved wear-life for all types of minerals including iron, gold, lead/zinc, bauxite, copper, phosphates, and others.

    POWER

    Processing fuel is critical to reducing the cost of power generation. By designing components that significantly reduce downtime and maintenance costs. We are helping power plants worldwide to keep down generating costs.

    AGGREGATE

    Crushing recycled concrete and quarry stones is a critical operation for aggregate industries. By providing suitable metallurgy, we increase life time of crusher parts and thus help aggregate industries in reducing cost and reducing down time.

    Community Impact

    CSR Strategy

    Our CSR initiatives are designed to actively contribute to the Social, Economic, and Environmental Development of the community in which we operate. We enable the socio-economic development of the community through focused initiatives, driven towards the underprivileged and marginalised sections of society. We are driven by the commitment to enable environmental sustainability through ecological conservation and regeneration, protection and regrowth of endangered plant species, and promotion of biodiversity.

    AIA’s corporate social responsibility agenda is driven by the CSR Committee of the Board. It is implemented through the CSR Policy.

    Composition of CSR Committee
    Sr. No. Name of Director Designation No. of CSR Committee meetings held during the year No. of CSR Committee meetings attended during the year
    1 Mr. Bhadresh K. Shah, Chairman Executive 4 4
    2 Mr. Sanjay S. Majmudar Independent 4 4
    3 Mr. Yashwant M. Patel Executive 4 3
    4 Mr. Rajendra S. Shah Independent 4 3
    5 Mrs. Khushali S. Solanki Non-Independent 4 3
    6 Mrs. Bhumika S. Shodhan Non-Independent 4 3

    CSR Spend

    The CSR expenditure for the current year is ₹ 1,233.21 Lakhs as of 31 March, 2022. The shortfall of ₹ 12.12 Lakhs in the spending during the year under report will be transferred to the Fund specified under Schedule VII of the Companies Act, 2013 on or before 30 September, 2022

    Year 2020-21 2021-22
    CSR Expenditure (Lakhs) ₹1,144.19 1,233.21
    Details of CSR Amount spent against SDGs/projects for the 2020-21 & 2021-22
    SDGs 2020-21
    (in Lakhs)    		 2021-22
    (in Lakhs)
    Zero Hunger
    		 31.25 31.00
    Good Health and Well-being    		 317.14 362.41
    Quality Education    		 160.00 581.88
    Decent work and Economy Growth (Promotion of National Heritage, Art & Culture )    		 581.00 29.00
    Good Health and Well-being (Promotion of Sports)    		 38.95 -
    Life and Land (Plantation and Animal)    		 15.85 228.92
    Total 1,144.19 1,233.21

    Monitoring & Implementation

    AIA’s CSR activities are monitored by the CSR department. The Department provides regular progress reports to the CSR Committee of the Board. The Board of Directors include it in the Annual Report on CSR projects.

    The CSR Committee monitors the implementation of the CSR Policy and Annual CSR Action Plan. For this purpose, it holds meetings as and when required. The Annual CSR Action Plan may be revised by the Board of Directors on the recommendation of CSR Committee as and when the Committee may deem it fit. The Committee reviews the policy every two years unless such revision is necessitated earlier.

    CSR Activities

    Our CSR activities are in line with the Company’s stated Vision and Mission, focused not just around our facilities and offices, but also in other geographies based on the needs of the communities. Through our CSR activities, we commit to undertake, support, and enhance the lives of marginalised sections in one or more of the following focus areas:

    Eradicating hunger, poverty and malnutrition:
    • Provision of food, nutrition supplement, clothes, for the poor, children, and other deprived sections of the society
    • Supporting nutrition in Anganwadi centers and building capacities of Anganwadi workers to this effect. Provision of shelter for homeless
    • Promoting sanitation, making available safe drinking water
    Promoting Healthcare including Preventive Healthcare
    • Through awareness programmes
    • Health check-ups, provision of medicine, and treatment facilities
    • Providing pre-natal and post-natal healthcare facilities
    • Prevention of female foeticide through awareness creation
    • Programme for preventing diseases and building immunity
    • Providing for mentally retarded, blind children, and socially weak people for reducing inequalities faced by the society
    • Providing aids for disaster relief
    Ensuring environmental sustainability and ecological balance through:
    • Plantation drives in schools, villages, our manufacturing units, offices/business premises, and other areas in general
    • Reviving endangered plants, promoting Agro-forestry
    • Protection of flora and fauna
    • Conservation of natural resources
    • Maintaining the quality of soil, air, and water
    • Adoption of wastelands to cultivate plants
    • Promoting biodiversity
    • Animal welfare and veterinary services
    • Technical support and know-how for improving farming and building capacities of small farmers
    • Promoting alternate energy resources
    • Renewable Energy Projects

    The Company carried out various lively hood enhancing vocational skills and projects.

    In addition, the Company has identified the following areas for community development interventions – promotion of education, especially among children, women, the elderly, and the differently abled, promoting gender equality and empowering women.

    Our CSR initiatives go beyond the above-mentioned areas. We contributed towards the CM relief fund, PM relief fund, PM Cares fund (following the outbreak of the Coronavirus-led pandemic, earlier this year) and the, Swachh Bharat Kosh.

    AIA believes in the inclusive growth of the communities in which we live and work. By responding to the emerging needs at the grassroots level, our CSR initiatives stay aligned to the global sustainable development goals.

    Project Gyan Deep

    AIA believes that quality education is the birth right of every child. Gyan Deep is AIA’s CSR Initiative which was earlier being implemented by Schools LENS, and now it has been assigned to Yuva Unstoppable in collaboration with the Zeal Educational Consultants Private Limited and Jeevantirth – a Public Charitable Trust. The target audience is the under-privileged students in Government schools of Gujarat. The objective is to help the teachers enrich their classroom teaching using innovative educational methods. The assessment for this initiative is carried out quarterly.

    Case Study
    GYAN DEEP – A CSR Initiative of AIA Engineering Limited

    This application used is an android mobile application. The app is currently available only in Gujarati (regional) language. It was created for students to avail home learning during the pandemic. The app features a user-friendly interface that helps both the students and the teachers to use it without any difficulty.

    It has the same content which is available in smart classroom solutions in our programme. It features creative animation content and worksheets that have been created by academic experts. It has a huge question bank

    Gyan Deep Project is directed towards ‘Teachers Training’ and ‘Capacity Building’ where we conduct several seminars and workshops within school premises. This involves activities like Teachers’ Survey, Teachers’ Training, Community Development, Leadership Workshop, Students’ Assessment, etc.

    Goal To improve the quality of education in Gujarati medium Government primary schools in the rural area of Ahmedabad district
    Project Duration 3 academic years
    Starting Year January 2022
    Number of Students Benefited 5,420
    Number of Teachers Benefited 150
    Number of Schools Selected 11 Government primary schools
    School’s Geographical Location Urban and rural area of Ahmedabad District – near AIA Engineering Limited’s manufacturing facilities
    Target Group for Programme Beneficiary Students, teachers, principals and parents
    Standard to be Targeted Standard 1 to 8
    The first activity for the Gyan Deep programme was to provide the required hardware to these schools and configure it at each school:
    One smart classroom (for Teacher’s Usage): It contained the following technology components:
    • 1.1. Computer with an operating system
    • 2.2. Projector
    • 3.3. Speaker system
    • 4.4. Software license for 3 years
    One tablet classroom (for Student’s Usage): It contained the following technology components:
    • 1.1. Server with an operating system
    • 2.2. Tablets (40 per school)
    • 3.3. Headphones and other accessories
    • 4.4. Ruckus WIFI industrial router
    • 5.5. Software license for 3 years
    Location-wise Tree Plantation Drive
    We planted approximately 1,00,000 trees at the following sites:

    Chiloda Air-Force Colony, Air Force Recruitment Board, Gandhinagar, Ahmedabad; Military Cantonment Board, Ahmedabad; Municipal East Zone Park & Garden Dept. Nikol Ward Garden, Baroda Military Cantonment, and Baroda Air Force. The assessment for this initiative is carried out quarterly.

    Supply Chain Management

    AIA is committed to responsible business practice in its operations and throughout the value chain. Our supply chain partners/vendors are based locally, and we enter into long-term contractual agreements with them. Our business performance is dependent upon the timely and reliable supply of raw material, fuels, packaging material and other consumables.

    We work with 6,489 local (Gujarat Region) vendors, which covers 40% of our total vendors. AIA has initiated the process of understanding the capability of key suppliers and has already assessed 10-15 core vendors on supply parameters. Performance assessment on environmental and social criteria will be conducted with critical suppliers in 2022-23, and this will also include physical audits.

    Approach to Responsible and Fair Sourcing

    Responsible supply chain practices are vital to our business and a core value. We assess and audit vendors/suppliers on ESG aspects and build their capability.

    When seeking out new vendors/ suppliers, to meet future demands in product sourcing, we are guided by our core values. We are committed to upholding and addressing human rights across our network of suppliers. Where possible, we buy goods and services locally. We offer training and development programmes to help local communities take advantage of employment and procurement opportunities.

    We identify and fairly evaluate new suppliers. Supplier evaluation takes place in two phases:

    • a. Technical
    • b. Commercial

    Technical specifications, detailed scope, and expectations are discussed with the supplier before moving on to commercial quotes. This enables suppliers to understand requirements before the finalisation of the commercials.

    Vendor Rating and Performance

    Vendors are classified based on a system-generated vendor performance rating report every quarter. Where performance improvement is required, the purchasing department interacts with the vendor and provides this feedback while agreeing on a timeline for completion of the same.

    Currently, we have 10,607 live vendors, and we source engineering products such as fixtures and parts that go into the manufacturing of grinding media and other castings. Spare parts include standard, tailor-made parts, prefabricated parts, and fasteners.

    • Stationery is procured from paper producers BILT and International Paper APPM whose plantations are managed sustainably.
    • Key raw material comprises metal scrap and Ferrochrome. The final product comprises 60-75% recycled materials such as scrap and returns.
    • Sand is procured from the glass industry which produces high silica sand or from legally mined sand sources from Ankleshwar and Surendranagar regions.
    • AIA has partnered with quenching oil manufacturers to produce improved oils with longer life.
    • We monitor the life and condition of the transport vehicle and check the permissions and licenses. A monthly physical audit of the vehicle is done jointly by the HR and a Company employee selected on a random basis.
    • AIA partners with local vendors to develop their capacities for product packaging and machining of castings.
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