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INTEGRATED SUSTAINABILITY REPORT 2017 - 2018

CMD Message 1

About The Report 3

Sustainability Context 4

Organization Profile 5

Risks And Opportunities 20

Governance 24

Stakeholder Engagement 32

Materiality Aspects 35

Report Profile 39

Disclosure Of Management Approaches 40

Economic Performances 44

Environmental Performance 48

Energy Saving Projects 59

Social Performance 60

Corporate Social Responsibility 78

Product Responsibility 82

KBL Events 83

Strategy Planning and Deployment 84

Future Outlook 91

GRI Content Index 94

National Voluntary Guidelines 101

Independent Assurance Statement 106

CONTENT

INTEGRATED SUSTAINABILITY REPORT

CMD MESSAGE

1REPORT 2017-18

Sanjay C. KirloskarChairman & Managing Director

2


REPORT 2017-18

ABOUT THE REPORT

Report Scope:

This Sustainability Report for Kirloskar Brothers Limited (KBL The Company) is published in accordance with Global Reporting Initiative (GRI) Standards 'Comprehensive' option and covers KBL's Environment, Economic and Social performance between April 1, 2017 and March 31, 2018. The last Integrated Sustainability Report 2017 was released in Aug, 2017. Annual reporting cycle is maintained for all our Sustainability Reports since 2008 and these are available on the Company's website kirloskarpumps.com.

This is the 9th year of reporting and KBL has a mature system for compilation and reporting of Sustainability performance. The report is compiled in-house by the Corporate Sustainability Team with data inputs from all businesses compiled using a data management system. The data management techniques used in the report comprises actual measurement, computations and estimations (the assumptions are specified). The data for economic performance has been extracted from KBL's Annual Report FY2017-18. The data presented in the report is verified through systematic internal and external assurance.

Reporting boundary:

This report is for the KBL standalone and its subsidiaries and Joint venture. The reporting boundary covers KBL Corporate office and all manufacturing locations in India as shown below:

1. Kirloskar Brothers Limited Corporate Office, Pune Kirloskarvadi Plant Dewas Plant Sanand Plant Kaniyur Plant Kondhapuri Plant

2. Subsidiaries Karad Projects and Motors Limited, Karad

Kirloskar Corrocoat Pvt Limited, Kirloskarvadi

The Kolhapur Steel Limited, Kolhapur

3. Joint Venture Kirloskar Ebara Pumps Limited, Kirloskarvadi

Assurance:The Sustainability report is externally assured by E& Y.Assurance statement is included in this report.

3REPORT 2017-18

SUSTAINABILITY CONTEXT

Demonstrated through (KBL Demonstrates this through)Principle

Ethical behaviour

Respect for stakeholdersinterests

Respect for the rule of law

Respect for internationalnorms of behaviour

Respect for human rights

Accountability & Transparency

Implementation of Code of Ethics and Values

Monitoring of compliances and educating concerned people, implementation of intellectual property protection system

Empowerment of women in manufacturing plants, Focus on employee safety , engagement with employees, Code of ethics and implementation of SA 8000

Compliance to all regulatory norms at international operations

Financial reporting, Integrated Sustainability Reporting, Corporate Governance practices, Internal and external audits, LAKAKI Business Excellence assessment, GreenCo assessment

Engagement with stakeholders and action plans to address the needs and expectations of customers, Development of employees

4REPORT 2017-18


ORGANISATION PROFILE GRI 102-1: Name of the organization

Kirloskar Brothers Limited

Subsidiaries

Karad Projects and Motors Limited (KPML)Kirloskar Corrocoat Private Limited (KCPL)The Kolhapur Steel Limited (TKSL).

Joint Venture

Kirloskar Ebara Pumps Limited (KEPL)

GRI 102-2 : Primary brands, products, and services.

We have following products in our manufacturing range: KBL range of products

5REPORT 2017-18

Pumps Valves Hydro Turbines Packaged Systems

End Suction Pump Francis Turbines HYPN

Monobloc Pump Sluice valve Kaplan Turbines Eterna

Split Case Pump Non Return Valve Pelton Wheel Turbines Fire Fighting System

Submersible Pump Kinetic Air Valve HVACR System

Multistage Pump Foot Valve Condition Monitoring System

Sump Pump FM Approved Gate Valve Solar Pumping System

Vertical Turbine Pump Cast Steel Gate Valve Mobile Pump Controller

Special & Engineered Pump

Cast Steel Globe Valve

Cast Steel Check Valve

Ball Valve

Steam Trap Device

Forged Steel Gate, Globe

Check Valve

Suction Diffuser & Triple

Duty Valve

6

Multi-stagemulti-outlet pump

Verticalturbine pump

Hydropneumaticsystem Canned motor pump Magnetic drive pump

Mini-series pump Mini-series pump Open Well Submersible Pump

Open Well Submersible Pump

REPORT 2017-18


New products Launched by KBL in the year 2017 -2018

KOSI Elbow PumpsSwimming Pool PumpsFire Sprinkler

Motor Division Stamping Division Component Division

Electric Motors Stator & Rotor Laminations for Rotating Machines

Drive Unit Assemblies

Mini pumps Wound Stators & Die-cast Rotors

shaft Connecting Rods and Shafts

Special purpose motors Stacks,

Stator - Rotor for Canned- Motor Pump Progressive tools

Motor assembly for Health Care Equipment and Elevator Applications

7

KPML Range of Product

REPORT 2017-18

KI Motor Auto electriclamination stack

Stator for healthapplication

Lift Motor

KCPL range of products

KCPL is devoted towards manufacturing variety of Glass flake filled coating formulations specially designed and developed to give peak performance of the assets with unique aim to integrate productivity and profit.

We manufacture variety of application specific coatings with formulations based on epoxy, polyester, vinyl ester etc.

Corroglass Series forPump,Valves Coating& Refurbishment

Plasmet Series for External of Structures, Pipelines, Vessels Coating

Fluiglide Series for Energy Conservation / Energy Efficient coating of Pumps

Polyglass Series for internal of Pipelines, Vessels Coating

KEPL range of products

API Process Pumps Boiler Feed Water Pumps Drive Turbines Power Turbines

Overhung type pumps-KESS (UCW) Pumps -OH2 Series

Low and Medium pres-sure- KBSL / KBSM (MSS / MSSH) Pumps

Single stage turbine KT-BKT-D

Back pressure turbine-Straight Backpressure TurbineExtraction cum Backpressure

Between bearing type- KBSD (KS) Pumps -BB2 Series KBTS / KBTD (R2 / R2D) Pumps -BB2 Series KB3S / KB3D Pumps -BB3 Series KBDS / KBDD (DCS / DCD) Pumps -BB5 series

High pressure-KBSH / KBDH (SS / SSD) Pumps -BB4 Series

Condensing turbine- Extraction cum Condensing Double Extraction cum Condensing

Vertically suspended type-KVSL (VPCS) Pumps -VS1 & VS6 Series KVSH (VPCH) Pumps

8REPORT 2017-18


Saturated Steam Turbine: ECO-TUR E API-610 Pump Model-R2 R2D Power Turbine

TKSL Range of Products

9REPORT 2017-18

Turbine Casing Runner Blade Pump Casing

SERVICES

Registered OfficeUdyog Bhavan, Tilak road,Pune 411002, India

Corporate OfficeYamuna, Survey No. 91/(3-7),Baner Pune 411045, India

KPML

B 67/68, Karad IndustrialMIDC Area, Tasawade, Karad 415109, District. Satara, Maharashtra, India

KCPL

KEPLYamuna, Survey No. 91/(3-7),Baner Pune 411045, India

Yamuna, Survey No 91/ (3-7),Baner, Pune -411 045. India

TKSLTHE KOLHAPUR STEEL LTD.,Pune Bangalore Highway, Shiroli ( Pulachi), Kolhapur - 416 122

10REPORT 2017-18


11REPORT 2017-18

TKSL Business Verticals

GRI 102-7: Scale of the Organisation

Number of products sold by each operation location is given as below

382

324

661

0

800

2015-16 2016-17 2017-18

200

400

600

Year

Num

ber

s

Kirloskarvadi - Large Pumps

328683

294380

359275

0

400000

2015-16 2016-17 2017-18 Year

300000

200000

100000

Dewas - Pumps

22160

35002

42096

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2015-16 2016-17 2017-18 Year

Kirloskarvadi - Small& Medium Pumps

2

1

00

2

2015-16 2016-17 2017-18

1

Year

Num

ber

s

Num

ber

s

Kirloskarvadi - Turbine

12REPORT 2017-18


KBL KPML KCPL KEPL TKSL

Total Employee 3097 516 48 490 330

Total Operations 5 3 1 1 1

Net Sales (Mn) 19534 3375.0 341.3 1641.8 359.8

Steam Turbine Hydro Turbine Pump Valves General Engineering

Mining

Francis Runner Bell Mouth Valve Body Head Stock Cross

Turbine ChestTurbine Chest Open Impeller Bonnet Tiller Centre Case

Runner Blade Enclosed Impeller

Gear Wheel Sprocket

Guide vane Pump Casing Rear Case

Turbine casing

Turbine Housing

Nozzle Chest

115130

142550

176052

0

200000

150000

100000

50000

2015-16 2016-17 2017-18 Year

Num

ber

s

Sanand - Pumps

393010

504156

593370

0

600000

400000

200000

2015-16 2016-17 2017-18Year

Num

ber

s

Kaniyur - Pumps

29748 29901

25073

22000

30000

28000

24000

2015-16 2016-17 2017-18 Year

Num

ber

s

Kondhapuri - Valves

2600060359

69387

10738

805

51040

135265

1476 11670

150000

Electric Motors Pumps Wound Stators Die-cast Rotors

100000

50000

KPML - Motor Division 2017-18

Num

ber

s

Year

2016-17

2017-18

1025497

1346217

2521474

497083

786540

1196056

3300859

743540

0Wound Stators Die-cast Rotors

1000000

KPML - Stamping Division 2017-18

Num

ber

s

Stampings &Laminations

Stator / Rotors Stacks

2000000

3000000

830120

1014392

55632489760

400000

KPML - Compponent Division 2017-18

Num

ber

s

8000000

12000000

Connecting Rods Drive Unit Assembly

13

Year

2016-17

2017-18

Year

2016-17

2017-18

REPORT 2017-18

1500000

2500000

3500000

500000

10000000

600000

200000

227464

246520

210000

250000

2016-17 2017-18

220000

230000

240000

Year

KCPL 2017-18

Anticorrosive Product

1699

0

2000

2017-18

500

1000

1500

Castings

Met

ric

Tonn

es

TKSL 2017-18

404

2 3

374

3 3

0Pump Turbine

100

KEPL 2017-18

Turbo Genset

400

500

300

200

Year

2016-17

2017-18

14REPORT 2017-18

INTEGRATED SUSTAINABILITY REPORTLi

ters

Num

ber

s

GRI 102-8: Employee Details KBL

15

Role/level wise distribution

2015-16 2016-17 2017-18

Male Female Total Male Female Total Male Female Total

Staff 923 79 1002 931 76 1007 920 75 995

Workmen 944 19 963 918 22 940 997 16 1013

Trainees 17 6 23 1 1 2 35 10 45

Temporary/FTE

328 34 362 312 34 346 268 48 316

Apprentice 129 5 134 113 5 118 132 4 136

Operator Trainees

0 0 0 0 0 0 0 0 0

Earn & Learn 1 0 1 0 0 0 0 0 0

Associate Trainee

31 8 39 59 9 68 62 6 68

Total 2373 151 2524 2334 147 2481 2384 159 2573

Contract Manpower

1300 1726 1959

Total Manpower

3824 4207 4532

Region 2015-16 2016-17 2017-18


Coimbatore 47 105 152 49 147 196 60 144 204

Dewas 802 10 812 782 9 791 827 7 834

Kirloskarvadi 1927 21 1948 2177 22 2199 2504 28 2532

Kondhapuri 160 0 160 161 0 161 161 0 161

Pune 442 75 517 488 62 550 393 57 450

Sanand 198 37 235 268 42 310 321 30 351

REPORT 2017-18

GRI 102- 9 : Supply chain

Main objective of our supplier chain is to increase the customer value and to develop a reliable advantage over competition. Table given describes the categories of partners and suppliers in the value chain of KBL. This partnership has resulted in sustainable benefits for the partners as also to KBL based on joint development projects, technological and financial support to these partners.

By working with our suppliers to develop a more sustainable supply chain, it helped us to cut costs, manage risk better, generate new sources of revenue and boost the value of our brand.

KBL has developed long term relationships with key suppliers and partners. This is a result of mutual trust and respect for each other which KBL and suppliers have jointly developed.

16

Role/level wise distribution

KPML KCPL KEPL TKSL

2017-18 Male Female Total Male Female Total Male Female Total Male Female Total

Staff 105 7 112 43 1 44 240 17 257 36 2 38

Workmen 188 0 188 4 0 4 47 0 47 178 0 178

Co. Trainees 0 2 2 0 0 0 4 0 4 0 0 0

Staff Apprentice

6 0 6 0 0 0 11 0 11 12 5 17

Operator Trainees

0 0 0 0 0 0 0 0 0 0 0 0

Earn & Learn 19 0 19 0 0 0 29 0 29 0 0 0

Diploma Trainee

7 1 8 0 0 0 0 0 0 0 0 0

Total 325 10 335 47 1 48 331 17 348 226 7 233

Contract Manpower

181 0 181 236 0 236 135 0 135 141 0 141

Retainers 0 0 0 0 0 0 7 0 7 0 0 0

Total Manpower

506 10 516 326 2 328 473 17 490 367 7 374

REPORT 2017-18


Partners / Suppliers

Dealers Increasing market share of KCPL. Customer satisfaction.

Suppliers of Raw Material

Contractors

Bought -out items Quality, Delivery, Product Performance, Cost

Tools / Instruments / other consumables Delivery, Quality, Service

Service providers like Transport, Canteen, security, manpower providers, etc.

Quality Service

Technology providers, Joint Ventures Latest technological competitive edge.

KPML


Suppliers of Foundry Raw Material and Bar Material

Finish machined items, casting suppliers, fabricators and machining vendors

Cost, Quality improvement, Delivery, Productivity Improvement, Flexibility.


Pattern / Die makers / Tools / Gauges / other Support for New Product Development, Delivery,

Service providers like Transport, security, manpower providers, etc.

Quality Service

KCPL

17

KBL


Dealers Increasing market share of KBL. Customer satisfaction.

Authorized Refurbishment Center (ARC) Convenient and timely service support to customers Increase in spare and replacement business.

Suppliers of Foundry Raw Material and Bar Material




Capacity enhancement, New Product development, Branding.

Group Companies and Subsidiaries Strengthen Brand Image, Quality, Cost, Business growth, Delivery, Flexibility

Pattern / Die makers / Tools / Gauges / other consumables

Support for New Product Development, Delivery, Quality, Service


Quality Service


REPORT 2017-18

KEPL

TKSL

GRI 102-10: Any significant changes during the reporting period regarding the organization's structure, ownership or its supply chain

In order to leverage expertise and to improve operational effectiveness for better control and focused approach, Irrigation and water resource management sector brought under common Sector Head

There are no significant changes regarding, ownership or supply chain in subsidiaries and joint venture.

GRI 102-11: Report whether and how the precautionary approach or principle is addressed by the organization

While KBL acknowledges this principle and believes in the Principle 7 of UN Global Compact the operations of KBL do not have any environmental impacts which would require precautionary measures. KBL has proactively implemented Energy Conservation initiatives by increasing the alternative of renewable energy sources. Other initiatives and achievements related to environment are mentioned in environmental performance section of this report.

GRI 102-12: List externally developed economic, environmental and social charters, principles, or other initiativesto which the organization subscribes or which it endorses.

CII Code for Ecologically Sustainable Business Growth

18


Authorized Refurbishment Center (ARC) Convenient and timely service support to customers Increase in spare and replacement business.

Suppliers of Bar Material




Pattern / Die makers / Tools / Gauges / other consumables

Support for New Product Development, Delivery, Quality, Service


Quality Service



Raw material supplier

Machining vendors Cost, Quality improvement, Delivery, Productivity Improvement, Flexibility.

Pattern / Tools / Gauges / other consumables Support for New Product Development, Delivery,


Quality Service,

Technology providers Latest technological competitive edge.

REPORT 2017-18


GRI 102-13: List memberships of associations (such as industry associations) and national or internationaladvocacy organizations in which the organization (finance data)

Confederation of Indian Industries

Maratha Chamber of Commerce & Industries

Hydraulic Institute

Indian Pump Manufacturer Association

Federation of Indian Chamber of Commerce & Industries

Maharashtra Chamber of Commerce, Industry and Agriculture

Indian Water Partnership ( Global Water Partnership)

Public Affairs Forum of India

All India Management Association

Fluid mechanics and Fluid Pumping

Bureau Of Indian Standards (BIS)

Solvent Extractor's Association of India

Indian Paper Pulp Association of India

File and Security Association of India

Indian Society of Heating Refrigerating and Air conditioning Engineers

Indian Plumbing Association

19REPORT 2017-18

RISK AND OPPORTUNITY

20REPORT 2017-18


Key risks and opportunities across significant businesses are listed below

21REPORT 2017-18

Risks Strategic & Operational Initiatives

Lack of availability of skilled workforce Improved focus on automation Continued focus on developing skilled workforce through BODHI

Project execution delay Robust pre bid risk assessment process for timely detection and elimination of risks

Mitigated through resource optimization and claims with the clients

Talent gap Leadership stream development to recognize and develop future leaders

Skill-based training to staff to foster leadership qualities

Aggressive bidding by competitors Enhance pre-bid engineering Cost optimization through value added solutions Differentiate from competitors by bringing in more value and

improving ability to execute the orders on time

Cost competitiveness Develop a strong Value engineering process. Aim to develop critical and niche products to increase the margins Develop a strong supply & marketing chain management process

Cost overrun Achieve operational excellence Avoid time overruns Change orders to cover changes due to extended scope

of contract

Operational excellence initiative to improve cost optimization Continue organization wide emphasis on value engineering, lean

manufacturing and procurement optimization Product design optimization to optimize material consumption

Technology obsolescence Deployment of resources to identify new technologies Developing potential new technologies for the future

Safety Employees and contractors encouraged to report and resolve po-tential /actual safety concerns (Near miss, unsafe act and unsafe condition)

Competency and awareness of all personnel towards safety aspects

Sharing and implementation of safety practices across locationsImplementation of behavior based safety

Opportunities

KPML

KEPL

22REPORT 2017-18


Stoppage of business from distribution Sector Alternate products/Customer developments

Increase in Raw material prices Value engineering and process cost reduction initiatives

Opportunities Strategic & Operational Initiatives

URJA Business Develop infrastructure to cater future business needs

IE4 Motors Products development


Preparation of Technical documents fully addressing customer requirement 100 % adherence to stage gate process

Inadequate long term strategic supplier partnerships for export business

Focus on vendor partnerships for targeted projects & commodities.Develop suppliers to deliver world class quality

Aggressive bidding by competitors Enhance pre-bid engineeringCost optimisation through value-added solutions


Investments in petrochemicalsector in Middle East and India

Leverage credentials and past track record to pursue overseas projects


Collaborative Project delivery methods

Adoption of collaborative approaches for execution of projects involving civil and or piping work Formation of JVs based on scope of the contract

Government thrust on water and waste water projects

Augmenting In-house capabilities Spread business in new geographies

Growing potential in emerging economies

Business plans made to increase sales in international markets.

Capability building Organisational capability building through competencyevaluation and imparting competency development trainingof various employees

Growth Potential in Solar Business Provide Solar energy solutions for operating largepumping systems. Tie up to provide integrated systems

Enhanced awareness among Industry users on the need for

Strong infrastructure demand in the country

Plans are in place to effectively increase business presence


KCPL

23


Entry level pricing by Competitors Customer relationship and customer educationBacked with strong track record

Delay in project clearances/site availability from clients

Removing ambiguity in interpretation of contract clausesClose coordination with customer site teams


New Market development a. Solar tanks coatingb. Chimney Coating

Focus on Solar tank coating businessDedicated efforts for pre tendering activities

REPORT 2017-18

GOVERNANCEGRI 102-18:

Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social

24

Bo

ard

Mem

ber

s

Audit & Finanace

Co

mm

itees

Nomination &Remuneration

Stake HoldersRelationship

Corporate SocialResponsibility

4 Independent Directors

3 IndependentDirectors

1 Executive Director

2 NonExecutive Directors1 Executive Director

Board2 IndependentDirector

1 Executive Director

REPORT 2017-18


25

Subsidiaries and Joint Venture

Subsidiaries / Joint Venture

Name of committee

Members

Audit & Finance

responsibility1Non-Executive Director1Executive Director

1 Executive Directorexecutive)2 Non-Executive Director

KPML KEPL KCPL TKSL



-- 2 Independent Directors

Topics Delegating authority from the highest authority

Economic Managing Director Managing Director Chief Executive Managing Director

Environmental Managing Director Plant Head Plant Head/HR-Head Managing Director

Social HR -Head HR-Head HR-Head HR -Head

KPML KEPL KCPL TKSL

1Non-Executive 1Non-Executive 1Non-Executive

Nomination & Remuneration

2 Independent Directors1Non-Executive

2 Independent Directors1Non-Executive

-- 2 Independent Directors1Non-Executive

Corporate Social 1 Independent Director


1 Chairman(non- --

REPORT 2017-18

26

GRI102-21 Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

CMD interact with stakeholders. In addition the business sector heads, corporate function heads and manufacturing plant heads interact with the various stakeholders through multiple channels/platforms. For example they visit customers, suppliers, and joint venture partners, representatives of local bodies, educational institutions, government, media and employees.

There is a dedicated email id provided to the shareholders to communicate with the Company and to register their grievances/ complaints. The Company addresses the same promptly.

GRI 102-22:Report the composition of the highest governance body and its committees by: Executive or non-executive Independence Tenure on the governance body Number of each individual's other significant positions and commitments, and the nature of the commitments Gender Membership of under-represented social groups Competences relating to economic, environmental and social impacts Stakeholder representation

The composition of highest governance body is provided in the link below:

Name of the company Whether company has appointed an executive level position

KPML Yes-Managing Director has all the powers

KCPL Yes- Appointed an executive level position and directly report to Board of Directors

KEPL Yes-Managing Director has all the powers

TKSL Yes-Managing Director has all the powers

Name of the company KPML KEPL KCPL TKSL

Method of consultation

Managing Director & other executives interact with stake holders


Directors & Chief Executive interact with stake holders


Name of the company Link to access

KBL http://www.kirloskarpumps.com/investors-board-of-directors.aspx

KPML https://www.kpml.co.in/aboutus.php?id=37

KCPL http://www.kicopl.com/about_us_management_team.aspx

TKSL http://www.kolhapursteel.com/we-are-tksl-board-of-directors.aspx

REPORT 2017-18


27

GRI 102-24: Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members, including:

Whether and how diversity is considered

Whether and how independence is considered

Whether and how expertise and experience relating to economic, environmental and social topics are considered

Whether and how stakeholders (including shareholders) are involved

The Company has formulated Board Diversity policy which sets out the approach towards diversity on the Board of Directors of the Company. The independent directors fulfill all the requirements laid down for appointment of independent directors in Companies Act, 2013.

The terms of appointment of highest governance body can be found on link provided below.http://www.kirloskarpumps.com/pdf/Independent%20Director%20letter_website.pdf.

Appointments including reappointment, of all Directors are confirmed by the Shareholders.

Name of the Company

KPML Chairman of the Board of director is an independent Director

KCPL Chairman is a non-executive chairman

KEPL Chairman is a non-executive chairman

TKSL Chairman is a non-executive chairman

Name of the company Nomination and selection processes for the highest governance body and its committees,

KPMLlaid down for appointment of independent directors in the Companies Act, 2013.The Board has an optimum combination of nonexecutive and Independent Directors.

KCPL The Directors are nominated by the joint venture partners. The composition is in proportion as agreed between the partners in the Articles of Association.

REPORT 2017-18

28

TKSLlaid down for appointment of independent directors in the Companies Act, 2013. The Board has an optimum combination of nonexecutive and Independent Directors.

Name of the company Nomination and selection processes for the highest governance body and its committees,

KEPLlaid down for appointment of independent directors in the Companies Act, 2013..

REPORT 2017-18


29

Name of the Company Highest Position reviewing the sustainability report

KPML Managing Director

KEPL Managing Director

KCPL Chief Executive

TKSL Managing Director

REPORT 2017-18

30

GRI102-34: Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.

Mitigation plan for any critical issue or concern is prepared by concerned committee and same is discussed with board. Board provides their feedback and suggestions to resolve the issues. This year there were no critical concerns identified and communicated.

GRI 102-35: a.Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration:

Fixed pay and variable pay:

Performance-based pay

Equity-based pay

Bonuses

Deferred or vested shares

Sign-on bonuses or recruitment incentive payments

Termination payments

Claw backs

Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees

b. Report how performance criteria in the remuneration policy relate to the highest governance body's and senior executives' objectives for economic, environmental and social topics.

Company has developed Remuneration policy for the Board of Directors and Senior Management Personnel; it is uploaded on Company website on following link.

http://www.kirloskarpumps.com/pdf/investor-information/policies/Remuneration%20Policy.pdf

Name of the company Process for communicating critical concerns to highest governance body

Quarterly statutory legal compliance report through company secretary summarizing critical concerns for the Board.

KCPL Periodic reporting and quarterly Board Meeting

KEPL By way of meeting at the general meeting, replying through emails, letters etc. for all stakeholders, where stakeholders can directly report any concern related to them.

TKSL The Company has developed whistle blower policy for all stakeholders, where stakeholders can directly report any concern related to them. This policy is uploaded on the Companys website. Complaints if any, received under whistle blower is communicated to the Chairman of the Committee.

KPML

REPORT 2017-18


31

GRI102-36: Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization

No remuneration consultant is appointed.

GRI102-37: Report how stakeholders' views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable.

We follow the robust performance appraisal for awarding the salary increment of employees.

GRI 102-38: Report the ratio of the annual total compensation for the organization's highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country

Data is of confidential nature hence cannot be disclosed

GRI102-39: Report the ratio of percentage increase in annual total compensation for the organization's highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country.

Data is of confidential nature hence cannot be disclosed

Name of the Company Remuneration policy for the highest governance body

KPML KPML follows remuneration policy formulated by holding company, sitting fees are paid to the independent director for attending Board meetings

KCPLthe Board Meetings of the Company. The sitting fee is

Companies Act.

KEPL Company has formulated Remuneration policy; The sitting fees are paid to the independent director for

as per the provisions of the Companies Act.

TKSL Company has developed Remuneration policy; it is uploaded on Company website on following link.http://www.kolhapursteel.com/we-are-tksl-investors.aspx

REPORT 2017-18

32

STAKEHOLDER ENGAGEMENT

REPORT 2017-18


33

Employees

Employee Engagement SurveyFeedback sessionSpeak out session Knowledge sharing sessionSuccession planning for critical positions Transparent performance appraisal system Lucrative incentive schemes

Outbound training programs

To improve employee satisfaction level and understand their expectation level by increasing their loyalty towards organisation

-Career growth

-Skill development-Effective/Quality training programs

-Competency mapping, -Functional & soft skill development programs-Career Development activities-Reward and recognition

Mode & Frequency of Engagement

Purpose Requirement Highlights KBLs Initiatives

Shareholder / Investors

Annual General meeting Website Publication (Annual), Feedback form (continuous basis),

earning Call Updates on NSE & BSE in public newspaper, shareholding pattern displayed quarterly

tus, future plans, policies and strategies to build trust of investors

To communicate - Business Performance - Improved ROI- Fair business practices

- Transparency of business plans- Regular dividend- Disclosure of Non-

indicators in Sustainability report

Customers

Perception Survey (Annual), special events, Technical seminars, exhibitions and regular meeting with customers Visits of customers to our premises (Annual), Toll free service (regular), Retailer meet, Farmers meet

Customer experience their perception and ex

-

-pectations

Quality products, Order execution and delivery on time, Service and Maintenance, technology up gradation

products),Business and CommercialSupport, SalesTeam,SustainabilityAssessment

Focus on time delivery in full Deeper customer connect at multiple levelsIncrease service CentersWarehouse facility at KirloskarvadiStreamlining of Customer Relationship Management (CRM) 7.1,) WE CARE and Salesforce software for identifying and responding to customer requirements.

REPORT 2017-18

34

GRI 102-41: Percentage of total employees covered by collective bargaining agreements

Permanent, on roll bargainable workmen are covered by collective bargaining agreements.

GRI 102-45: a. List all entities included in the organization's consolidated financial statements or equivalent documents.

http://www.kirloskarpumps.com/investors-financial-information-annual-reports.aspx

b. Report whether any entity included in the organization's consolidated financial statements or equivalent documents is not covered by the report

Entities covered in this report are mentioned in aspect boundary section.KCPL, KEPL, KPML and TKSL's are standalone entities and their financial statements are considered in the Consolidated Financial Statements of Kirloskar Brothers Limited

Mode & Frequency of Engagement

Purpose Requirement Highlights KBLs Initiatives

Suppliers and vendors

Vendor meetVendor perceptionSurveys

Understand needs and expectations of suppliers/ vendors,

-Repeat orders -Timely payment - Clear PO terms

Payment status on web PortalShare point for monitoring of entire procurement activities. RTGS transfers system for paymentsPurchase order terms & condition standardization,system and process improvement at vendor end, SQIP audits, Process audit

Supplier improvement programmes

Upgrade suppliers capabilities

Develop partnering relationship

Dealers and Distributors

Apex dealers meet One to one meet (regular), Dealer portal (Regular), Dealer Survey Dealer audits,Gen-Next Program

To develop understanding about business operations and implement business plans into action, Meet the expectations of next generation. To increase foot print in ISC countries

-Business support, -Channel Management, -Commercials

Improve Channel management process, Implement channel partner intimacy program, Appoint new dealers, Dealer audit for system improvement

Society

Perception survey,Interactions with local communityAwareness programsActivities through Vikas Charitable trust Summer internships, Industrial visits for students

To know the needs, expectations,requirements andconcerns of thesociety anddevelop actionplans.

Water & Sanitation Better educationReduce Child MortalityImprove Maternal care Promote EnvironmentalSustainability

Health EmployabilityEducationEnvironmentalAwareness

REPORT 2017-18


35

MATERIALITY TOPICS

Priortisation

Analysis of high, medium or low importance of a particular topic based on stakeholder engagement

Evaluation of Stakeholders perception of KBL's impact with that material topic

Significance of a material topic to a particular KBL business based on

KBL's corporate strategies, policies, Risk and Opportunity for the Business.

Aggregation of material topics by Sustainability Coordinator

Validation Review by Sustainability Team

Final Review and approval by Senior Management Team

REPORT 2017-18

36

Material Aspects

36

34

32

30

28

26

24

22

20

18

16

14

12

10

8

6

4

2

0363432302826 242220181614121086420

Organisation

Sta

ke H

olde

r

REPORT 2017-18


37

Description of Material Issues:

Focus Issues Relevance

Customer Satisfaction Assess customers needs and expectations through surveys. Innovation in our products and services helps us serve larger market segments and repeat orders are testimony to client satisfaction. Develop customer intimacy through personal interactions

Economic performance & Market presence We focus on improving shareholders returns by maintaining optimal capital structure. Our ongoing capex projects and prudent risk management framework contribute in enhancing our operational performance. Strengthening KBLs position as one of Indias most trusted name.

Employee training & development and leadership development

Training is a necessary ingredient for growth. The company has prioritised employees training as key focus area. All talent related investments are focused

a robust leadership stream

Occupational Health &safety of employees and contractors and emergency preparedness

Our operation requires utmost safety. safety standards to work towards zero accident goal, and it is important to comply with regulatory requirements

Anti-corruption Ensure management of business in a fair and a transparent way in line with KBL values through effective governance. Conduct business with uncompromising integrity and professionalism.

The depletion of energy sources is detrimental to long term business objectives. Increasing energy savings directly relate to reduced cost of power and fuel, and thus reduced operational cost and increased

Natural resource conservation and material management

Our business/operations primarily dependent on the utilisation of natural resources including ferrous and non- ferrous material. Judicious utilisation of such resources is aiding our efforts towards carbon abatements, while improving productivity and

Sustainability of Supply chain Assessing Supplier or dealers for their current practices and up-gradation. New supplier selection with revised evaluation process which also addresses sustainability parameters. Taking sustainability practices in supply chain will also help them to improve their economic, environmental, and social performance.

REPORT 2017-18

38

GRI 102-48: Restatements of information provided in previous reports

No restatements are made from the previous report.

GRI 102-49: Significant Changes in the reporting period in the list of material topic boundaries

There is no significant change in the reporting period.

Focus Issues Relevance

Procurement Practices We encourage procurement from locally available sources. Suppliers are our strategic partners for timely delivery of our products and completion of our projects. It is important for us to encourage our suppliers to join us in our quest for sustainable growth. We have established system for continuous development of supply chain through SQI activities.

REPORT 2017-18


39

REPORT PROFILE

REPORT 2017-18

40

DISCLOSURES ON MANAGEMENT APPROACH

REPORT 2017-18


41REPORT 2017-18

42

39 0 35 21 70

Number of grievanceaddressed

39 0 35 21 70

Number of grievanceresolved

36 0 35 19 56

Number of grievanceresolved prior

03 0 0 19 56

Kirloskarvadi Kondhapuri Dewas Sanand Coimbatore

REPORT 2017-18


43

2017-18

c) Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

There are no reportable grievances in this year

d)Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

No grievance has been reported in this year

KPML KCPL KEPL TKSL

Number of

labor

02 0 0 0

Number of grievance addressed

02 0 1 0

Number of grievance resolved

0 0 1 0

Number of grievance resolved prior

0 0 0 0

REPORT 2017-18

44

ECONOMIC PERFORMANCEGRI 201-1: Direct economic value generated and distributed

17420

18413

19534

16000

17000

18000

19000

20000

2015-16 2016-17 2017-18 Year

Rs.

in M

n

Sales Rs Mn

Economic Value Generated

2015-16 2016-17 2017-18

Revenues 17420 18413 19534

Total 17420 18413 19534

Operating Costs

Material Cost and other expenses 14640 15003 15733

Employee expenses

Payment to Providers of Capital

Dividend 0 0 90

Finance Cost 382 315 253

Payments to Government Income taxes (excluding Deferred Tax) 42 265* 366

Community Investments Expenditure Under 0 7.31 7.5

Corporate social responsibility

Total 16979 17698 18517

Economic Value Retained

Depreciation 408 397 352

Retained Earnings 33 318 665

Total

441 715 1017

Economic Value Distributed

REPORT 2017-18


45

3363

346

1644

0

1000

2000

3000

40000

KPML KCPL KEPL

Company

Sal

es R

s. M

n

Revenue Rs. Mn

457

TKSL

KPML KCPL KEPL TKSL

Materials 2388 755 750 189

Operation 661 2013 624 168

Employee Expenses 112 424 216 91

Finance Cost 6 53 17 12

Taxes and Duties 44 7 9 0

Dividend 25 0 3 0

REPORT 2017-18

46

Company Name Spending on local suppliers

KBL 95.96%

KPML 92.37%

KCPL 89.35%

KEPL 90.97%

TKSL 99.59%

REPORT 2017-18


47

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

No incidence has been reported.

GRI 206-1: Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

No legal action has been instituted against the Company for anti-competitive behavior, anti-trust and monopoly practices, during this reporting period.

REPORT 2017-18

Participation in Code of Ethics Examination

Locations

Level - Band (A to SS )

No. Of.

participated

% Of No. Of.

participated

% Of No. Of.

participated

% Of

Pune 63 100 247 100 560 100

Kirloskarvadi 8 100 76 100 257 100

Dewas 4 100 24 100 93 100

Coimbatore - 1 100 15 100

Sanand 1 100 6 100 28 100

Kondhapuri 1 100 9 100 29 100

Employees Employees Employees

-

Senior Management Middle Management Junior Management

Locations

Level - Band (A to SS )

Senior Management Middle Management Junior Management

No. Of. Employees participated

% Of employees


% Of employees


% Of employees

KPML 4 100 16 100 80 100

KCPL 2 100 8 100 33 100

KEPL 17 100 66 100 154 100

TKSL 33 100 9 100 24 100

% OfEmployees

% OfEmployees

% Of Employees

48

ENVIRONMENTAL PERFORMANCE

REPORT 2017-18


Plant Wood Consumed in MT Recycled wood In MT Recycle wood in %

Kirloskarvadi 286.72 131.91 46.01

Kondhapuri 34.37 7.282 21.19

Metals consist of all types of Pig iron, Cast Iron, Steel and other metals. Nonmetals consist of Cement, Lime stone, Rubber, Plastic and Other non-metals. Whereas lubricant consists of oils, paints and thinners etc. Values are reported for all the manufacturing locations.

GRI 301-2: Percentage of materials used that are recycled input materials

Materials that are recycled input material fall largely in two categories namely for product and for packaging.

The Total Wood Consumption and Percentage of Wood recycled for Kirloskarvadi and Kondhapuri for the FY 2017 -2018 is shown in the below table.

Materials KBL KPML KCPL KEPL TKSL

Weight/volume Weight/volume Weight/volume Weight/volume Weight/volume

Metals (MT) 22178.0 19074.0 224.3 1086.9 1983.3

Non-metals (MT) 1838.7 1621.3 213.0 19.9 307.2

Non-metal- Wood (MT)

364.1 0.0 0.0 35.0 0.0

Lubricants (kL) 400.4 71.0 69.6 19.3 2606.0

KBL

Weight/volume

354.7

22178.0

1.6

Materials

Recycle Input Material (MT)

Total Input Material (MT)

% of Recycle Material used

49REPORT 2017-18

Total EnergyConsumption

within theOrganization

Non - Renewable Fuel Consumed+

Renewable Fuel Consumed+

Electricity, Heating, Cooling and steam purchased for Consumption+

Self-generated Electricity, Heating, Cooling and stream-

Electricity, Heating, Cooling and Steam Sold

=

Total energy consumption, which includes renewable as well as non-renewable energy, within the KBL for FY 2017-18 is 151198 GJ which is 9.6% higher than previous year. The total energy consumption for the subsidiaries for the Yr. 2017-18 are also referred in adjacent graph.

KBL Kondhapuri Plant has commissioned 190 kWp Rooftop solar plant and will generate the power for the plant consumption which is equivalent to 60% of yearly electrical energy consumption.

Contribution of renewable energy for KBL in FY 2017-18 was 27% of total electrical energy consumption.

200000

KCPL TKSL

Total Energy Consumption

1219

789609

16588

46061290

KEPL

138344

137582

151198

136000

140000

139000

138000

Year

GJ

KBL - Total Energy Consumption

137000

2015-16 2016-17 2017-18

5454

50REPORT 2017-18

Year

2016-17

2017-18


0

150000

100000

KPMLYear

GJ

50000

16034

2016-17

51

Non - renewable fuels used in manufacturing are diesel and coke. Coke is majorly used in furnace for melting of metal whereas diesel is used in running the DG sets and vehicles used for material movement. Knowing the impact of harmful air emissions due to the use of coke and diesel, we aimed at reducing its use at the source and strive to reduce its consumption and utilize it at optimum level.

Charts below provides energy consumed over the past three years, distributed in Renewable and non-renewable type

GRI 302-2: Energy consumption outside of the organization

During FY 2017-18 energy audit team has carried out audits at various customers in different sectors like Cement, textile, power, water etc. around 33 customers on pan India basis. Projected Savings based on the recommendations given by Energy Audit team is 29010045.6 kWh

KBL received ESCO Grade -IV certification from BEE. Assessment was carried out this year by CARE.

GRI 302-3: Energy intensity

Energy efficiency is a vital part of the nation's energy strategy and has been since the first oil crisis in 1973. As part of a national priority for improving energy efficiency, the Department of Energy's (DOE) Office of Energy Efficiency and Renewable Energy (EERE) has established a national system of indicators to track changes in the energy intensity.

This system of energy intensity indicators is useful:

To know the intensity of energy use and its components are changing

To understand energy intensity has changed over the years

Complement other provided inputs to program analyses, including improved understanding of the impact of program on energy intensity

The company's main sources of energy are electricity, coke, diesel, and liquefied petroleum gas. The expenditure on energy is significant because of the nature of its business activities. Electricity is obtained mainly from the national grid. This is supplemented by the use of environmentally friendly 'in-house' generators. Energy intensity ratio is calculated by dividing absolute total energy consumption by sale value in Rupees Million. This ratio includes energy used within the organization.

2015-16 2017-180

150000

100000

Year

GJ

KBL - Energy Consumption

50000

109912

27669

122108

29033

30

28

27

24

30

28

Year

%

KBL - Renewable Energy

26

2015-16 2016-17 2017-18

108448

29896

REPORT 2017-18

Renewable Energy

Non Renewable Energy

52

0.0KPML KCPL TKSL

Energy Intensity

5.0

KEPL

10.0

GJ/

Rs.

Mn

Year2016-172017-18

3.0

5.0

4.0

8.4

7.6

7.9

0

9

8

7

2015-16 2016-17 2017-18Year

GJ/

Rs.

Mn

KBL - Energy Intensity

REPORT 2017-18


1728

4.8

2.8

3.5

53

GRI 303-2: Water sources significantly affected by withdrawal of water

We have installed water conservation related infrastructure and make efforts to sensitize our employees towards conserving water on regular basis. We employ better technologies, recycle and reuse water to minimize fresh water consumption. We also organize initiatives that build a habit of consuming less water, diligently. Our efforts paid off significantly, as we have been able to consistently curtail the amount of water withdrawn along with adopting a zero waste water discharge approach.

All our gardens are irrigated by waste water received from factory or office which is treated and recycled.

REPORT 2017-18

5000

10000

15000

20000

2500024995

19291

12886

21107

2410 2045

13439

2016-17

2017-18

KBL - Total Water Consumption

54

Water Source KCPL 2017 -2018 - Openwell:2050 m3

GRI 303-3: Percentage and total volume of water recycled and reused

The rate of water reuse and recycling is a measure of efficiency and demonstrates the success of organization in reducing total water withdrawals and discharges. We have increased use of recycled water and we intend to go further ahead in this journey.

68

37

40

2419

64

100

50

0

%

KBL - % of Water Recycled

Kirlos

karva

di

Kond

hapu

ri

Sana

nd

corp

orate

Kaniy

ur KBL

2017-18

20

Year

Percentage of Water Recycled40

KCPL TKSL

2016-17

2017-1830

23

0

Openwell:3203881 m

Borewell:359661 m

Bottle:3563.52 m

Recycled Water:3169948 m

Water Sources KBL2017- 2018

TKSL - Openwell311521 m

TKSL - Borewell31918 m

TKSL - Recycled Water3833.4 m

Water Sources TKSL2017- 2018

Openwell:324649 m

Borewell:3345 m

Bottle:30.529 m

Recycled Water:35213 m

Water Sources KPML2017- 2018

KEPL - Openwell321107 m

KEPL - Borewell30.193 m

KEPL - Recycled Water35379 m

Water Sources KEPL2017- 2018

84

Dewa

s

REPORT 2017-18


10

0

%

KPML

0

6

KEPL

35

21

25

55

16.9

14.5 14

2015-16 2016-17 2017-18Year

m3/

Rs.

Mn

KBL - Water Intensity 30.0

20.0

0.0

Water Intensity

KPML KCPL TKSLKEPL

10.07.4

12.0

29.0

10

5

0

20

15

m3/

Rs.

Mn

7.0

Year

2016-17

2017-18

REPORT 2017-18

7.08.0

6.0

56

GRI 305-3: Other indirect greenhouse gas (GHG) emissions (Scope 3)

This year we haven't measured our Scope 3 emissions

GRI 305-4: Greenhouse gas (GHG) emissions intensity

GHGs are released from natural sources but the combustion of fossil fuels, agricultural activities, waste generation and industrial processes over the past have increased their concentrations well beyond historical levels. GHG intensity is the ratio of emissions (scope 1 and 2) to the sales value of that particular year

GRI 305-5: Reduction of greenhouse gas (GHG) emissionsIntensity of GHG emission is calculated based on emissions due to use of energy or generation of energy from non-renewable sources. The company will continue to monitor its carbon footprint and ensure that there is a progressive reduction in years to come by implementing new initiatives.

GRI 305-6: Emissions of ozone-depleting substances (ODS)Ozone depleting substances are detrimental to the planet as they deplete the earth's protective ozone layer. Ozone-depleting substances have stayed and will continue to stay in the atmosphere for many years. This, essentially, implies that a lot of the ozone-depleting substances human have allowed to go into the atmosphere for the previous 90 years are still on their journey to the atmosphere, which is why they will contribute to ozone depletion. In the case of KBL, ozone depleting substances are not significant as refrigerants are used in a limited way in offices and manufacturing plants. The office and manufacturing areas in the Company have air conditioning, which majorly used non ozone depleting substances for cooling.

22298

23528

25249

2015-16 2016-17 2017-18Year

KBL - GHG Emission (Scope 1&2)

20000

22000

24000

26000

0KPML KCPL TKSLKEPL

Year

2016-17

2017-18

2000

4000

5000

m3/

Rs.

Mn

4259

1.35

1.30

1.32

2015-16 2016-17 2017-18Year

KBL - GHG Emission Intensity

1.26

1.28

1.36

1.30

1.32

1.34

0.00

5.00

10.00GHG Emission Intensity

KPML KCPL TKSLKEPL

Tons

0.83

1.271.1

0.90 0.80

10.7

0.6

GHG Emission Intensity (Scope 1&2)

Year

2016-17

2017-18

REPORT 2017-18

INTEGRATED SUSTAINABILITY REPORTTo

nstC

O2/

Rs.

Mn

sale

s

1000

27853000

1405

1084

289 318

4908

57

GRI 305-7: NOX, SOX, and other significant air emissions

The air emission stacks are monitored regularly as prescribed in the consent.

GRI 306-1: Total water discharge by quality and destination

All the sewage and effluent from offices and manufacturing units is recycled and reused. It is reused largely for maintaining the green cover in the respective campuses and for flushing in toilets. Due to this use, we have not released significant amount of untreated wastewater into the municipal sewage systems.

However, the water quality of recycled water is within the permissible limits mentioned by state pollution control board.

GRI 306-2: Total weight of waste by type and disposal method

We are conscious about waste generated in our campus and we intend to reuse, recycle or disposed it in a sustainable manner. We ensure that the waste, hazardous or non-hazardous, is disposed with the authorized vendor. We are constantly improving our waste management systems.

For KCPL, the recycled water is consumed for gardening purpose by KBL, Kirloskarvadi plant

Emissions TypeStack Emissions in tons (tons/yr)

KBL KPML KEPL KCPL TKSL

SPM 62.24 0.010 0.003 0.792 0.021

Sox 2.020 0.011 0.006 0.010 0.011

Recycled Water KBL KPML KEPL KCPL TKSL

Volume (kL) 267316.5 24994.53 21107.19 2050 13439

% of recycle 63.58% 20.86% 25.48% - 6.20%

Waste Unit Quantity/Volume


Hazardous Waste

Paint sludge MT 56.29 0 3.98 15 0

Used Oil KL 9.50 0 0.45 0.37 0.2

Oil Soaked Cotton waste

MT 6.04 0 10.94 0 0

Used Batteries

Nos 1.00 0 0 0 0

Coolant MT 0.00 0 9.00 0 0

E-Waste MT 2.28 0 0 0 0

Discarded Containers

MT 0.00 0 0 25 0

Non-Hazardous Waste

Food waste MT 16.02 0 1.30 0.00 0.698

Metal Waste MT 514.52 7782 91.78 0 0

REPORT 2017-18

GRI 308-1: Percentage of new suppliers that were screened using environmental criteria

KBL supplier evaluation process involves assessment of suppliers for environmental performance. This criterion is a part of evaluation format. Currently 100% suppliers are assessed based on the environmental criteria. This process of assessment of environmental performance will be extended for the subsidiaries /Joint Venture from current year.

GRI 308-2: Significant actual and potential negative environmental impacts in the supply chain and actions taken

We create awareness on energy conservation at supplier end. We share our knowledge and ENCON experience with them motivating them for energy conservation. As mentioned in other sections we have supplier screening mechanism where Environment conservation is one of the aspects. Only suppliers having proper processes in place are considered and continued as supplier for KBL. We have extended this process to our subsidiaries / Joint Venture from current year.

58

GRI 306-3: Total number and volume of significant spills

There were no significant spills in the reporting period.

GRI 306-4: Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Hazardous wastes generated in various production processes like oil, non - ferrous metal, hazardous waste as defined in Schedule - 4 of Hazardous waste (management & handling) Amendment Rules 2003), are sold only to recyclers/re-refiners/re-processors registered with the Ministry of Environment and Forests (MoEF) / Central Pollution Control Board (CPCB). We do not ship hazardous waste internationally.

GRI 306-5: Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization's discharges of water and runoff

All manufacturing units are located in Industrial Development areas notified by Govt. of India except the KPML component division, which is situated outside the industrial development area. They are not located adjacent to protected areas and areas of high biodiversity value outside protected areas.

GRI 307-1: Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

There is no incidence of any fine or non- compliance with respect to any national, regional and local regulations associated with environmental issues.

Total environmental protection expenditures and investments by type

Waste Unit Quantity/Volume


Paper & Carton waste

MT 178.18 24 2.28 1.25 0.9

Plastic Waste MT 17.63 4 0.60 0 0

Burnt Sand & Ash

MT 2640.00 13 0 5733

Wood waste MT 75.97 97 109.79 4.23 0

2017-18 Environmental Protection Expenditure (Rs.) KBL 786,750

KPML 83,650KEPL 9,19,395KCPL 43,500TKSL 16,00,000

REPORT 2017-18


59

Dewas

ENERGY SAVING PROJECTS

Before After

Parameter Before After

Water heating system at CED Plant

Hot water temperatureInvestmentExpected diesel savingReduction in diesel Co2 emmission

Cost SavingPayment

065 C

1 liter = 0.0028 MT of Co2

Hybrid system-solar water heater+Hot water generator

065 C0.399 Mn3600 Liter / Annum10.8 MT / Annum

Rs. 0.216 Mn / Annum1.84 Years

-

-

-

Parameter Before After

Street Lighting equipment

Qty.Illumination at groundTotal Connected load

Reduction in Co2 emmission

Cost SavingPayment

Metal Halide lamp 175 W

70

Solar LED + LED Lamp 36 W

35 + 7033 Lux3.8 kW2.492 Mn

Rs. 0.86 Mn / Annum2.9 Years

12 kW

-

33.3 MT / Annum

08 Lux

-Investment-1kwh = 0.0008 MT of Co2

REPORT 2017-18

60

SOCIAL PERFORMANCE

Age-wise Distribution

2015-16 2016-17 2017-18


Less than or equal to 30 yrs

54 5 59 224 25 249 320 33 353

31-50 yrs 54 5 59 83 8 92 95 11 106

Greater than 50 yrs

7 0 7 5 0 5 4 1 5

REPORT 2017-18


GRI 401-1: Total number and rates of new employee hires and employee turnover by age group, gender and region:

New employee hired-KBL

New Employee hired -KPML

New Employee hired KCPL

New Employee hired -KEPL

New Employee hired -TKSL

61REPORT 2017-18

Age-wise Distribution 2016-17 2017-18

Male Female Total Male Female Total

Less than or equal to 30 yrs 7 2 9 47 1 48

31-50 yrs 1 0 1 68 0 68

Greater than 50 yrs 1 0 1 0 0 0


2016-17 2017-18


31-50 yrs

Greater than 50 yrs

Male

4

1

1

Female

0

0

0

Total

4

1

1

Male

6

6

0

Female

0

0

0

Total

6

6

0

Age-wise Distribution 2016-17 2017-18



13 5 18 10 1 11

31-50 yrs 16 1 1 11 1 12

Greater than 50 yrs 0 0 0 2 2



31-50 yrs

Greater than 50 yrs

2017-18

Male Female Total

1 0 1

2 0 2

0 0 0

Location Females Males

2015-16 2016-17 2017-18 2015-16 2016-17 2017-18

Coimbatore 1 18 18 4 0 1

Dewas 2 0 0 10 59 80

Kirloskarvadi 0 9 13 29 84 226

Kondhapuri 0 0 0 6 13 17

Corporate 7 5 12 64 81 49

Sanand 0 2 1 6 39 68


2016-17 2017-18


Less than or equal to 30 yes

4 0 4 5 3 8

31-50 yrs 7 0 7 5 1 6


Location Females Males

2015-16 2016-17 2017-18 2015-16 2016-17 2017-18

Coimbatore 0 8 8 0 0 2

Dewas 1 0 3 8 83 60

Kirloskarvadi 0 9 6 12 162 171

Kondhapuri 0 0 0 2 10 19

Corporate 7 14 8 34 65 53

Sanand 0 4 6 1 30 27


2015-16 2016-17 2017-18Distribution Male Female Total Male Female Total Male Female Total


26 4 30 222 23 245 210 23 233

31-50 yrs 29 4 33 83 12 95 94 8 102

Greater than 50 yrs

2 0 2 45 0 45 28 0 28

62

Attrition -KBL

Attrition data KPML

Attrition data KCPL

REPORT 2017-18


2016-17 2017-18



4 0 4 2 0 2

31-50 yrs 6 0 6 4 0 4



63

Attrition data TKSL

Attrition data KEPL


2016-17 2017-18



2 0 2 11 1 12

31-50 yrs 0 0 0 25 1 26

Greater than 50 yrs 0 0 0


2017-18

Male Female Total


0 0 0

31-50 yrs 4 0 4

Greater than 50 yrs 7 0 7

REPORT 2017-18

64

Other welfare benefits/facilities provided to the employees are: Gymnasium Badminton Hall Swimming Pool Hospital Cafeteria/Canteen Table Tennis Family get together Temple at Kirloskarvadi Cultural Shows Sports Events Housing Colony at Kirloskarvadi School for Children Lectures on Work life Balance Lectures on Stress Management Health Club Play Ground Wedding gift

extended maternity leave. Most of our sites work on 5 days work schedule. Even at the plant sites, we practice alternate Saturday off.

KBL has also covered employees in various group insurance policies and exclusive benefits plans.

I) Group Health Insurance Program A best in class tailor made HI program with flexible option available in the hands of employees to choose health cover for family and parent up to 10Lakhs per year.ii) Parivar Suraksha Yojana An innovative way of putting up Group Term Life Plan, where in the regular income benefit is extended to deceased employees family for the period of 5 years. iii) Group Personal Accident Plan- Covers employees globally, 24/7 for any accidents, disability or death. iv) KBL Benevolent Fund: A fund maintained through employees' contribution to extend financial help to employee's family in case of death in service. v) Superannuation Fund Schemes

Number of employees entitled to parental leave,

Number of employees that took parental leave

Number of employees who returned to work after parental leave,

Number of employees who returned to work after parental leave ended who were still employed twelve months after their return to work, by gender

Return to work and retention rates of employees who took parental leave,

Male

-

-

-

-

-

2017-18

Female

3

3

N.A

N.A

N.A

REPORT 2017-18

GRI 401-3: Return to work and retention rates after parental leave, by gender:


65

2017-18 KPML KCPL KEPL TKSL

Male Female Male Female Male Female Male Female

Number of employees entitled to parental leave,

0 0 0 0 0 2 0 0

Number of employees that took parental leave

0 0 0 0 0 2 0 0

Number of employees who returned to work after parental leave,

0 0 0 0 0 1 0 0

Number of employees who returned to work after parental leave ended who were still employed twelve

months after their return to work, by gender

0 0 0 0 0 1 0

Return to work and retention rates of employees who took parental leave

0 0 0 0 0 50% 0

REPORT 2017-18

66

All manufacturing sites are being audited for safety by internal safety audit team, which is formed and specially trained for.

Safety inspections of all project sites are being carried out frequently to find out short falls and improvements.

There is no occupational disease reported at any of our manufacturing site and project site.

KBL

Safety Parameters Gender 2015-16 2016-17 2017-18

No. of Fatalities Male 0 0 1

Female 0 0 0

No. of Lost Time Incidence Cases ( LTI)

Male 11 3 0

Female 0 0 0

No. of Minor injuries including First Aid Cases

Male 70 69 104

Female 10 8 53

No. of Near-misses Male 110 23 31

Female 9 0 9

Frequency rate Male 1.39 1.49 14.20

Female 0 0 126.63

Severity rate Male 40.02 44.60 732.52

Female 0 0 0

Man Days Lost Male 315 358.5 7017

Female 0 0 0

Occupational disease (No.) Male 0 0 0

Female 0 0 0

REPORT 2017-18


KCPL 2016-17 2017-18

No. of persons worked Male 104 326

Female 2

Man hours worked Male 178696 155212

Female 0 0

Fatal accidents Male 0 0

Female 0 0

Reportable accidents Male 0 0

Female 0 0

LTI (non - reportable) Male 0 0

Female 0 0

First Aid case Male 1

Female 0 0

Near Miss Male 14 30

Female 0 0

67REPORT 2017-18

KPML 2016-17 2017-18


Female 13 10

Man hours worked Male 1464800 1609016

Female 26400 26856


Female 0 0


Female 0 0


Female 0 0

First Aid case Male 227 215

Female 0 1


Female 0 0

No. of man days lost (non - reportable)

Male 33 331

Female 0 0

No. of man days lost (reported, exc. fatal)

Male 19 235

Female 0 0

FR Male 1.37 1.86

Female 0 0

SR Male 12.97 146.05Female 0 0

REPORT 2017-18

68

KEPL 2016-17 2017-18


Female 18 17

Man hours worked Male 732633.6 1387584

Female 0 2223


Female 0 0


Female 0 0


Female 0 0

First Aid case Male 4 6

Female 0 0


Female 0 0


Male 7 5

Female 0 0


Male 0 0

Female 0 0

FR Male 6.82 0

Female 0 0

SR Male 0 0

Female 0 0


Male 0 0

Female 0 0


Male 0 0

Female 0 0

FR Male 0 0

Female 0 0

SR Male 0 0

Female 0 0

KCPL 2016-17 2017-18

REPORT 2017-18


69

GRI 403-3: Report whether there are workers who are involved in occupational activities who have a high incidence or high risk of specific diseases.

There are no any activities carried out at any of our location which have high incidence or high risk of specific diseases, which prevents to maintain the organization's social license.

Also we do not work where there is high risk of communicable diseases.

We conduct our hazard identification and risk analysis as a part of our OHSAS 18001 to check for the significant risk in terms of occupational health and safety at a regular frequency. No such significant risks have been reported. Every year medical checkup is carried out as per statutory requirements.

GRI 403-4: Health and Safety topics covered in formal agreements with Trade union

It is agreed between the parties that, all the Workmen shall observe and strictly adhere to safety rules and regulation to achieve zero accident rate. There shall be no compromise and restrictions on use of Personal Protective Equipment. Any breach of the safety rules and regulations shall entail the management to initiate strict disciplinary action against the defaulters. There is a formal bilateral agreement with trade unions to cover health and safety issues under the following heads.

TKSL 2017-18

No. of persons worked Male 367

Female 7

Man hours worked Male 472948

Female 11824

Fatal accidents Male 0

Female 0

Reportable accidents Male 0

Female 0

LTI (non - reportable) Male 7

Female 0

First Aid case Male 15

Female 0

Near Miss Male 5

Female 0

No. of man days lost (non - reportable) Male 175

Female 0

No. of man days lost (reported, exc. fatal) Male 0

Female 0

FR Male 0

Female 0

SR Male 0

Female 0

REPORT 2017-18

70

Medical Allowance. Mediclaim/Hospitalization Policy Death Benevolent Fund Safety at Work place Use of PPE Group Personal Accident Insurance Policy Group Term Insurance Policy Workmen Compensation Insurance Policy ESIC

Training

At KBL training is an integral part of the employability of each employee, be that a blue collar worker or executive. We don't put any limitations on where the employee wants to work provided he has the necessary skill set for it and is the best person for the job.

At the shop floor level, our emphasis on TQM encourages each employee to self-train in process improvement and have a solution-oriented approach to work. We encourage this kind of thinking by offering peer recognition.

Functional and behavioural competencies have been developed for each role. The training needs of each individual are identified from the annual competency assessment process and a learning management system is put in place to enable each employee to excel.

We also have shop floor programs such as Quality Control Circles where each member tries to improve the quality of their work process. Through this network teams work with other functions, and offer suggestions to improve the entire workflow or process. We also send them for international quality circle conventions so they can showcase their achievements.

GRI 404-1: Average Hours of Training per year per employee by gender and employee category

Employee category

Junior Management Middle Management Senior Management Worker

Male Female Male Female Male Female Male Female

KBL 37.31 69.22 23.45 16.08 14.22 27.63 4.22 14.64

KPML 11 09 04 0 01 0 04 0

KCPL 32 0 36 30 32 0 26 0

KEPL 6.9 5.54 2.59 4.13 1.43 1 0.7 0

TKSL 10 4 34.87 0 0 0 34.80 0

REPORT 2017-18


71

Support Level Development Program (SLDP)

Personal Effectiveness SF4 End User Workshop


Professional Excellence

Assessment Cycle in Controlling

Sustainability Report preparation training

AOD Operation

Personal Effectiveness

Soft Skill Training GST Awareness Behaviour Base Safety

Advance Excel GST Kaizen & 5 S Awareness

ISO Lead Auditors Training

Ergonomics Safe Material Handling

CNC Programming CII Total Employee Involvement Programme

Value Based Selling ESIC & PF Awareness

REPORT 2017-18

72

Professional English Enhancement

Sustainability External Audit Awareness

awareness training


Sales Force dot Com ISO 9001:2015 Fire Prevention and control

Support Level Development Program

Safety Awareness for Contractors supervisor

QMS 9001:2015 Awareness & Implementation

GST Training

Product Knowledge Mock Drill Training Behavior Based safety System

EMS, OHSAS Awareness Training

Material handling by EOT crane

Outbound Team building Program

Post Implementation of GST in SAP

Lakaki Awareness Prevention of Sexual Harassment(POSH) at workplace

Negotiation Skills First Aid training - DISH Approved

Root Cause Analysis Process Safety Management

Value Analysis & Value Engineering

Annual Supplier Compliance Event

Emergency Prepardness and Response Plan

Road Safety Awareness

Behavioral Based Safety Awareness

IATF 16949:2015 Internal Auditor

Awareness of HR Policies

Time Management

Basics of Contracts Executive Assistants Leadership Summit

Technical Training related to Coating

Welding rod selection with respective grade casting

Indian Accounting Standards

EHS awareness Aspect, Impact & HIRA Study

Business Etiquettes & Presentation Skills

Fundamentals of Pump

Basic PLC Training ISO 14001:2015, Internal Auditor Training

Standardise Mechanical Calculations

CII Directors Guild Platinum Programme

CIP NACE Level 1 & 2

Communication Skills ESI Scheme and

Programme

Design Thinking Stress Management

PRO_E Software EHS training

Basics of metal cutting

Jalverters

Water conservation in Foundry

SAP MM

SAP PM

SAP Quality

7 QC Problem solving tools

REPORT 2017-18


73

Skill up-gradation programs for continued employability and Transition assistanceprograms for separating employees

GRI 404-3:

Percentage of employees receiving regular performance and career development reviews, by gender and by employee category.

Twice in a year employees meet their Leaders to discuss their short- and long-term goals, job accountabilities and professional development. They enter the results of their discussions in our online performance management system. All confirmed employees are eligible for receiving performance and career development review.

Following table shows plant wise staff employees who received performance and career development reviews.

Data given in above table is of PMS & annual reward declared in June'2017.

GRI 405-1: Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

Refer G4- 102-22 from Governance

GRI 405-2: Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

Remuneration system is based on skill matrix and criteria for fixation of Basic Salary, it is the only principle consideredfor equal pay. We do not discriminate on gender basis.

KBL KCPL KEPL KEPL TKSL

CNC Programming IATF 16949:2015 Internal Auditor

Value Based Sellingtraining

ESIC & PF Awareness

Negotiation Skills Basic PLC Training Technical Training related to Coating

ISO Lead Auditors Training

Road Safety Awareness

Indian Accounting Standards

ESI Scheme and

Programme

CIP NACE Level 1 & 2

Welding rod selection with respective grade casting

PRO_E Software

Location Female Male Grand Total

Sanand 1 33 34

Coimbatore 7 12 19

Dewas 5 115 120

Kirloskarvadi 12 334 346

Kondhapuri 0 38 38

Pune 52 394 446

Grand Total 77 926 1003

Location Female Male Grand Total

KPML 04 92 96

KCPL 1 31 32

KEPL Nil Nil Nil

TKSL 2 35 37

REPORT 2017-18

74REPORT 2017-18


Human Rights

75

SA8000 & POSH awareness program

Awareness session on sustainability reporting framework was conducted for all 3 subsidiaries and Joint venture in which human rights clauses were also covered.

GRI 412-3: Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

KBL and its Subsidiaries/JV have not executed any investment agreements which contravene human rights clauses.

Level Total No. of Hrs. % of employees trained

Senior Management 1 1

Middle Management 32 6

Junior Management 211 12

Workers 1213 35

REPORT 2017-18

76

Society

REPORT 2017-18


77

GRI 419-1: Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations

There is no incidence of any fine or non-compliance with respect to anti-competitive behavior, anti-trust and monopoly practices.

REPORT 2017-18

78

At KBL we believe that our manufacturing facilities cannot exist in isolation from the villages around us. We have tradition of working with the immediate community that reaches back several decades. When we started community work, it was mostly to support the people who lived around the manufacturing facilities.

There is a distinct advantage to having a harmonious safe environment in which we can make our products. Because of this view, we see it as incumbent upon us to ensure that these communities the communities that make it possible for us to go about our daily work should be helped to improve their daily living.

We work closely with communities through awareness and training programmes. Our Social arm, Vikas Charitable Trust, does this by helping villagers find solutions that are sustainable in areas of healthcare and education.

CSR activities conducted in 2017-18

Organized Robotics training for Kirloskarwadi High School Study Skill sessions organized for 10th std. students With aim to spread joy and happiness, Daan Utsav was organized in Oct 2017 On 3rd Dec 2017, 500 children from 8 different schools, in and around Kirloskarwadi, participated in 'Balanand' a Drawing Competition organized by Vikas Charitable Trust in association with Prafulla Dhanukar Foundation Entry level WASH activity was conducted with three schools in Pune Under Stress Management Program, four batches of Art of Living program was organized in which 250 people participated. Medical Checkup and deworming camp was organized for 150 students Organised AIDS Awareness street play at Burli & Amnapur villages by the students of CSIBER College, Kolhapur. Total 8 events organised in the community as well as for the company employees at Kirloskarvadi WaSH Orientation at ZP School was organized at Nimgaon Bhogi Tal.Shirur Dist.Pune Survey of Self-help group, about detail information of savings, loan disbursement & small scale business through self- help group, was conducted. Swimming classes were organized for underserved kids, under SLK Sports Academy

CORPORATE SOCIAL RESPONSIBILITY AT KIRLOSKAR BROTHERS LIMITED

REPORT 2017-18


79

Education

KBL's education initiatives include providing support for the introduction of innovative teaching and learning methods in schools through Adarsh Shala Puraskar competition.

KBL has developed a special project for better assessment of present education system & finding out the requirements in school .This year we have selected 27 schools for Adarsh Shala Evaluation.

Project objectives were shared with identified schools by involving them in project planning stage. The steps involved:

Visit to an Ideal School in Maharashtra

Training to teachers

Sharing best practices

Providing expert lectures in different schools for teachers & schools

Invitation for prize distribution ceremony

REPORT 2017-18

80

Health

KBL organises health and welfare activities for school children and in nearby communities of manufacturing facilities. The health initiatives include conducting diagnostic and health camp for school children and street plays for employees as well as for community on HIV/AIDS.

REPORT 2017-18


Employee Voluntary Initiative

Self Help group KBL encourages its employees to don the role community volunteers, outside their working hours. It developed a platform to implement initiatives that are meaningful and effective for volunteers and beneficiaries. KBL employees are sensitive to social causes, passionate and committed for development initiatives.

81

Self Help Group Art of Living Sessions

REPORT 2017-18

National Level Drawing Competition

WASH initiative in Dewas

82

PRODUCT RESPONSIBILITY

REPORT 2017-18


83

KBL EVENTS

Acrex 2018, Bangalore

IFAT 2017 Mumbai

REPORT 2017-

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