To the Members,
The Directors are pleased to present the Annual Report for the Financial Year 2022-23
together with the audited financial statements of the Company for the financial year ended
March 31, 2023.
FINANCIAL SUMMARY/HIGHLIGHTS
The financial results of the Company are elaborated in the report on Management
Discussion and Analysis. Given below are the financial highlights.
| Particulars ( crores) |
Standalone |
Consolidated |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
| Revenue from operations |
5,356 |
4,856 |
6,925 |
5,437 |
| Earnings before exceptional items, interest, tax, depreciation and amortisation
(EBITDA) |
916 |
649 |
931 |
723 |
| Less: finance cost |
280 |
216 |
311 |
238 |
| Less: depreciation and amortisation expense |
203 |
198 |
309 |
308 |
| Net profit/(loss) before exceptional item and taxation |
433 |
235 |
311 |
178 |
| Exceptional item |
- |
53 |
- |
16 |
| Net profit/(loss) before taxation |
433 |
288 |
311 |
194 |
| Total tax expenses |
98 |
73 |
84 |
52 |
| Net profit/(loss) for the year after tax |
336 |
215 |
227 |
142 |
| Share of profit/(loss) of joint venture |
_ |
_ |
4 |
5 |
| Net profit for the year after tax & share in profit/(loss) of joint venture |
336 |
215 |
231 |
147 |
| Profit/(loss) from discontinued operations |
(260) |
(132) |
(104) |
(102) |
| Profit for the year |
75 |
82 |
127 |
45 |
| Share of profit/(loss) of minority interest |
_ |
_ |
(14) |
(15) |
| Net profit attributable to owners of the company |
76 |
83 |
141 |
60 |
| Balance carried forward from previous year |
1,587 |
1,580 |
1,679 |
1,695 |
| Amount available for appropriation |
1,663 |
1,663 |
1,820 |
1,755 |
| APPROPRIATIONS |
_ |
_ |
_ |
_ |
| Equity dividend and tax thereon |
(20) |
(79) |
(20) |
(79) |
| Others |
3 |
3 |
3 |
3 |
| Transactions with non-controlling interest |
|
|
(26) |
|
| Balance carried forward to the next year |
1,646 |
1,587 |
1,777 |
1,679 |
PERFORMANCE
Standalone
FY23 closed with Revenues of 5,356 crores, EBITDA of 916 crores, PAT of 75 crores and
EBITDA margins of_17.1%.
Consolidated
FY23 closed with Revenues of 6,925 crores, EBITDA of 931 crores, Net Profit
attributable to owners of the Company 141 crores and EBITDA margins of 13.4%.
OPERATIONS
With a strong global presence spanning four continents and serving customers across
over 100 countries, STL is a trusted name in the industry. Our expert offerings in Optical
Connectivity, Global Services, and Digital and Technology solutions have won us the trust
of leading names in telecom, cloud, citizen networks, and large businesses. In the US,
STL's fibre optic and connectivity solutions are helping the country build ubiquitous
broadband networks. STL has strengthened its presence with an advanced manufacturing
facility in South Carolina. STL has been front and centre of the UK's digital
transformation journey for more than 10 years. The company's optical cable and
interconnect offerings and network deployment expertise have pushed it to the centre of
‘Project Gigabit' in the UK. STL has strengthened its capabilities by setting up an
Optical and Services Centre of Excellence. We are serving the optical and network build
needs of our UK-based customers with design innovation and shorter lead times through our
optical cable and interconnect manufacturing setups in Italy. In Europe, STL is
driving design innovation in the optical network space to support national connectivity
programs and help build ubiquitous broadband, FTTx, and 5G networks. Through its advanced
Optical Fibre cable (OFC) and Optical Interconnect facilities in Italy, STL has helped in
meeting the fibre demand and expedited fibre rollouts across the European region. The
company's optical solutions are helping accelerate 5G connectivity and smart living in the
Middle East, and are driving digital inclusion in Africa. STL has a centre of
excellence in Dubai that integrates R&D and product development for the region. STL
started its journey in Australia in 2020 when it became the trusted optical partner
for the second-largest telecom operator in Australia. Since then, it has been an integral
part of the region's digital transformation journey.
We're excited to share that in May 2023, our board approved the demerger of our Global
Services business, which will pave the way for unlimited growth opportunities. We recently
formed STL Digital, a dedicated team that specializes in engineering amasing
digital experiences for customers in various industries such as telecom, technology,
manufacturing, and healthcare. We can't wait to see what the future holds for our company!
Early in FY23, we shared our strategic intent to drive focused growth. Taking action on
this plan, we exited three less profit-making businesses in FY23. We divested our IDS
business to Hexatronic group for ~GBP 14 million. We also sold the telecom software
products business to Skyvera, an affiliate for US-based Telco DR for ~US$15 million, and
in Q4FY23, we exited the wireless business.
As a company, we are strongly driven by our purpose of ‘Transforming Billions of
Lives by Connecting the World'. This purpose serves as a north star for our Environment,
sustainability and Governance (ESG) efforts. While delivering advanced optical and digital
solutions for future-ready networks, we are constantly looking for ways to create value in
our communities and for the environment. STL is championing sustainability and has
committed to becoming Net Zero by 2030. We keep sustainability at the core of our
manufacturing operations. At STL, waste management is one of the most fundamental ways the
company drives its sustainability agenda. Four of our manufacturing units in India are
Zero Waste to Landfill certified by Intertek, a US Quality Assurance provider. The
Rakholi, Dadra and Shendra plants have received Level 1 certification for diverting more
than 99% of waste. STL's Waluj plant has received a Level 2 certification for diverting
more than 96% of waste from landfills. STL aims to have all its plants across the globe
certified over the next few years. We continue to ensure Zero Liquid Discharge across 100%
of our optic fibre plants in drought-prone Aurangabad, Maharashtra.
BUSINESS RESTRUCTURING
The Board of Directors in its meeting held on May 17, 2023 approved Scheme of
Arrangement whereby the Global Services Business will be demerged into STL Networks
Limited, a wholly owned subsidiary of the Company, on a going concern basis, under the
provisions of Section 230 to 232 of the Companies Act, 2013, subject to, inter-alia,
receipt of approvals from the shareholders and creditors of the Company, as may be
directed by the National Company Law Tribunal, Mumbai Bench, Securities and Exchange Board
of India (SEBI) BSE Limited (BSE), National Stock Exchange of India Limited (NSE) and
approval of other regulatory or statutory authorities as may be required. Pursuant to the
Scheme, the Resulting Company will be listed on the BSE and NSE.
DIVIDEND AND DIVIDEND DISTRIBUTION POLICY
The Board of Directors (‘the Board') is pleased to recommend a final dividend of
1/- per Equity Share (i.e._50%) of 2/- each for the FY23. For the FY22, the dividend paid
was 0.50/- per share (i.e. 25%) of 2 each. The distribution of dividend will result in
payout of around 39.86 crores (excluding tax) on dividend. The dividend payout is subject
to approval of shareholders at the ensuing Annual General Meeting (‘AGM'). The
Company proposes not to carry any amount to reserves for the FY23. In terms of the
provisions of the Income Tax Act, 1961, the dividend, if declared, will be taxable in the
hands of the shareholders subject to tax deduction at source at the applicable rates. For
further details on taxability, please refer to annexure to the Notice of Annual General
Meeting. The Dividend Distribution Policy of the Company, in terms of Regulation 43A of
the Securities and Exchange Control Board of India (SEBI) (Listing Obligations and
Disclosure Requirements), Regulations, 2015 (‘Listing Regulations'), is available on
the website of the Company at https://www.stl.tech/Code-of-Conduct-and-Policies.html The
dividend recommended is in accordance with the principles and criteria as set out in the
dividend distribution policy.
SHARE CAPITAL
The paid-up equity share capital as on March 31, 2023 was 79.68 crores. There was no
public issue, rights issue, bonus issue or preferential issue etc. during the year. The
Company has not issued shares with differential voting rights or sweat equity shares.
CORPORATE GOVERNANCE
A Report on Corporate Governance, in terms of Regulation 34 of the Listing Regulations,
along with a Certificate from Practising Company Secretary, certifying compliance of
conditions of Corporate Governance enumerated in the Listing Regulations, is presented in
a separate section forming part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review, giving detailed
analysis of Company's operations, as stipulated under Regulation 34 of the Listing
Regulations, is presented in a separate section forming part of this Annual Report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)`
In compliance with the Listing Regulations, the Company has included a separate section
on Business Responsibility and Sustainability as a part of this Annual Report.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE
COMPANY
There were no adverse material changes or commitments occurred between the end of
financial year and date of this report, which may affect the financial position of the
Company or may require disclosure.
BOARD MEETINGS
A calendar of Meetings is prepared and circulated in advance to the Directors. During
FY23, seven meetings of the Board of Directors were held on April 28, 2022; July_25, 2022;
October 13, 2022; November 4, 2022; December_6, 2022; January 27, 2023 and February
23,_2023. The maximum time-gap between any two consecutive meetings did not exceed one
hundred and twenty days.
COMPOSITION OF AUDIT COMMITTEE
The Audit Committee of the Board comprises of Mr._S._Madhavan – Chairman, Ms.
Kumud Srinivasan – Member, Mr. Sandip Das – Member and Mr. Pravin Agarwal –
Member. All recommendations given by Audit Committee during FY23 were accepted by the
Board. Further details on the Audit Committee and other Committees of the Board are given
in the Corporate Governance Report, which forms a part of this Annual Report.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Pursuant to the recommendation of the Nomination & Remuneration Committee (NRC),
the Board, in its Meeting held on April 28, 2022, approved re-appointment of Mr. Sandip
Das as an Independent Director of the Company for a second term of two consecutive years
with effect from October 16, 2022 to October 15, 2024 and the same was approved by the
members at their Annual General Meeting held on August 26, 2022.
Mr. Ankit Agarwal was appointed as Managing Director for five consecutive years with
effect from October 08, 2021 upto October 07, 2026 by the members at their Annual General
Meeting held on August 26, 2022.
Pursuant to Section 149 read with Section 152 of the Companies Act, 2013 (‘the
Act'), Mr. Anil Agarwal (DIN 00010883), Chairman and Non-Executive Director will retire by
rotation at the ensuing AGM and being eligible, offers himself for re-appointment. The
Board recommends his appointment. Members of the Company, in the Annual General Meeting
held on June 26, 2018 had approved the appointment of Ms. Kumud Srinivasan as an
Independent Director for a period of five years from May 22, 2018 upto May 21, 2023. Upon
the recommendation of the Nomination and Remuneration Committee, the Board of Directors at
its meeting held on May 17, 2023, approved the re-appointment of Ms. Kumud Srinivasan as
an Independent Director of the Company for a second term of two years with effect from May
22, 2023 to May 21, 2025 based on the skills, experience, knowledge and report of her
performance evaluation. The re-appointment is subject to the approval of the members at
the ensuing Annual General Meeting by way of a Special Resolution.
Details of the aforesaid proposals for appointment are provided in the Annexure to the
Notice of the AGM. The Company has received necessary declarations from all the
Independent Directors confirming that they meet the criteria of independence as prescribed
under section 149(7) of the Act and Regulation 16 and 25 of the Listing Regulations. The
Independent Directors of the Company have also registered themselves in the databank with
the Indian Institute of Corporate Affairs and confirmed compliance of relevant provisions
of Rule 6 of the Companies (Appointments and Qualifications of Directors) Rules, 2014. The
Board is of the opinion that the Independent Directors of the Company possess requisite
qualifications, experience and expertise and they hold the highest standards of integrity.
Mr. Mihir Modi, stepped down as a Chief Financial Officer (CFO) and Key Managerial
Personnel of the Company, effective October 14, 2022 and Mr. Tushar Shro_ was appointed as
a Chief Financial Officer of the Company effective December 06, 2022.
In terms of provisions of Section 203 of the Act, and the Rules made thereunder,
following are the Key Managerial Personnel (KMP) of the Company:
1. Mr. Ankit Agarwal – Managing Director
2. Mr. Tushar Shro_ – Chief Financial Officer
3. Mr. Amit Deshpande – Company Secretary
PERFORMANCE EVALUATION OF THE BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS
The Board of Directors of the Company is committed to assessing its own performance as
a Board in order to identify its strengths and areas in which it may improve its
functioning. To that end, the NRC has established processes for performance evaluation of
Independent Directors, the Board and Committees of the Board. Pursuant to the provisions
of the Act and the Listing Regulations, the Board has carried out an annual evaluation of
its own performance, performance of its Committees as well as the Directors individually.
Details of the evaluation mechanism are provided in the Corporate Governance Report.
The Board has, on the recommendation of the NRC framed a policy for selection and
appointment of Directors, Senior Management and their remuneration (‘NRC Policy').
The NRC Policy of the Company includes criteria for determining qualifications, positive
attributes and independence of a director and policy relating to the remuneration of
Directors, Key Managerial Personnel and other employees. The NRC Policy is framed with the
object of attracting, retaining and motivating talent which is required to run the Company
successfully. The Policy can also be accessed on Company's website at the link:
https://www.stl.tech/Code-of-Conduct-and-Policies.html
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to provisions of Section 134(3)(c) and Section 134(5) of the Act, Directors,
to the best of their knowledge and belief, state that: a) in the preparation of the annual
accounts for the year ended March 31, 2023, the applicable accounting standards read with
requirements set out under Schedule III to the Act, have been followed and there are no
material departures from the same; b) the Directors have selected such accounting policies
and applied them consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the Company as at
March 31, 2023 and of the profit of the Company for the year April 1, 2022 to March 31,
2023; c) the Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a ‘going concern' basis; e) the
Directors have laid down internal financial controls to be followed by the Company and
that such internal financial controls are adequate and are operating effectively; and f)
the Directors have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
COMPLIANCE WITH SECRETARIAL STANDARDS
Directors confirm that the Secretarial Standard - 1 on Meetings of Board of Directors
and Secretarial Standard – 2 on General Meetings, issued by The Institute of Company
Secretaries of India, have been duly complied with.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts and arrangements with related parties, entered by the Company during the
financial year, were in the ordinary course of business and on an arm's length basis,
except for those which were specifically approved by the Board (for transactions not in
ordinary course).
There were no material contracts or arrangements or transactions entered into during
the year ended March 31, 2023.
Details regarding the policy, approval and review of Related Party Transactions are
provided in the Corporate Governance Report.
SUBSIDIARIES AND JOINT VENTURES
In accordance with Section 129(3) of the Act, a statement containing salient features
of the financial statements of the subsidiary companies in Form AOC-1 is provided as part
of the consolidated financial statement. Hence, a separate report on the performance and
financial position of each of the subsidiaries and joint venture companies is not repeated
here for the sake of brevity. This also includes highlights of performance of Sterlite
Global Ventures (Mauritius) Limited, Metallurgica Bresciana S.p.A. Sterlite Technologies
Inc., USA and Sterlite Tech Cables Solutions Limited which are material subsidiaries of
the Company.
During FY23, STL Digital UK Limited became a subsidiary of the Company: During FY23,
your Company transferred of its Digital Business Undertaking to STL Digital Limited, a
wholly owned subsidiary of the Company as a going concern on a slump sale basis. During
FY23, the Company entered into definitive documents to acquire balance 25% stake (through
its wholly-owned subsidiary) in Jiangsu Sterlite Fiber Technology Co., Ltd._(JSFTCL)
(Formerly known as Jiangsu Sterlite Tongguang Fiber Co. Ltd.). The acquisition of 25%
stake in JSFTCL has been completed on December 14, 2022. The Company now holds 100% shares
of JSFTCL through its wholly owned subsidiaries in China and Mauritius.
During FY23, the following have ceased to be subsidiaries of the Company:
• Sterlite Global Venture (Mauritius) Limited ("SGVML") (a
wholly owned subsidiary of the Company), divested its entire stake (amounting to
80% of the entire share capital) held in Impact Data Solutions Limited, UK
("IDS UK") to Hexatronic Group AB (publ.). Consequent to the
Transaction, IDS UK and its wholly owned subsidiary Impact Data Solutions BV, ceased to be
the subsidiaries of SGVML and step-down subsidiaries of the Company respectively effective
October 04, 2022.
• STL Tech GmbH has been closed with effect from October 18, 2022.
• Sterlite Technologies Inc, USA merged with Sterlite Tech Holding Inc., USA
effective April 1, 2023.
The Company has complied with Foreign Exchange
Management (Non-debt Instruments) Rules, 2019, as amended, for the downstream
investments made during the year. Policy on material subsidiaries, as approved by the
Board of Directors, can be accessed on the Company's website at
https://www.stl.tech/Code-of-Conduct-and-Policies.html The Audited Financial Statements of
the Subsidiary Companies have not been included in the Annual Report. The financial
statements of the Subsidiary Companies and the related information will be made available,
upon request, to the members seeking such information at any point of time. These
financial statements will also be available on the Website of the Company at
https://www.stl.tech/downloads.html
FINANCIAL STATEMENTS
Pursuant to various circulars issued by the Ministry of Corporate Affairs and SEBI, the
Company shall not be dispatching physical copies of the Annual Report and shall be sent
only by email to the members. However, copies of the Annual Report will be provided to the
members uponfirequest.
The consolidated financial statements of the Company prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015, duly audited by Statutory Auditors, also forms part of this Annual Report.
STATUTORY AUDITORS
M/s. Price Waterhouse Chartered Accountants LLP (Firm Registration No. 012754N/N500016)
(‘PWC') has been appointed as the Statutory Auditors in the Annual General Meeting
held on August 26, 2022 for the second term of five consecutive years from the conclusion
of 23rd Annual General Meeting till the conclusion of 28__ Annual General
Meeting of the financial year for 2027.
STATUTORY AUDITOR'S REPORT
There are no qualifications, reservations or adverse remarks made by the Statutory
Auditors, in their report for the financial year ended March 31, 2023.
SECRETARIAL AUDITOR
Pursuant to Section 204 of the Act, Mr. Jayavant B Bhave, Practising Company Secretary,
was appointed to conduct the Secretarial Audit of the Company, for the financial year
ended March 31, 2023. The Report of the Secretarial Auditor is annexed as Annexure I
to this Report. The Secretarial Audit Report does not contain any qualification,
reservation or adverse remark.
COST AUDITOR
The Company is required to make and maintain cost records for certain products as
specified by the Central Government under sub-section (1) of section 148 of the Act.
Accordingly, the Company has been making and maintaining the records as required.
Pursuant to Section 148 of the Act, read with The Companies (Cost Records and Audit)
Rules, 2014, the cost audit records maintained by the Company are required to be audited.
Mr Kiran Naik, Cost Accountant, was appointed as the Cost Auditor to audit the cost
accounts of the Company for said products for FY23 and the audit is ongoing. Cost Audit
Report for FY23 will be filed with the Registrar of Companies within the prescribed
timelines.
The Board of Directors has approved the appointment of Mr. Kiran Naik as Cost auditor
for FY 24 at a remuneration of Rs. 110,000. Mr. Kiran Naik, being eligible has consented
to act as a Cost auditor. As required by the provisions of the Act, a resolution seeking
Members' approval for the remuneration payable to Mr Kiran Naik, Cost Auditor for FY24 is
included in the Notice convening the ensuing AGM.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls commensurate with the
size, scale and complexity of its operations. During the year, such controls were tested
and the Company has, in all material respects, maintained adequate internal financial
controls over financial reporting as of March 31, 2023 and are operating effectively. The
Board of Directors has devised systems, policies and procedures/frameworks, which are
currently operational within the Company for ensuring the orderly and efficient conduct of
its business, which includes adherence to Company's policies, safeguarding assets of the
Company, prevention and detection of frauds and errors, accuracy and completeness of the
accounting records and timely preparation of reliable financial information. In line with
best practices, the Audit Committee and the Board reviews these internal controls to
ensure they remain effective and are designed to achieve their intended purpose. Where
weaknesses, if any, are identified as a result of the reviews, corrective and preventive
actions are then put in place to strengthen controls. The systems/frameworks include
proper delegation of authority, operating philosophies, policies and procedures, effective
IT systems aligned to business requirements, an internal audit framework, an ethics
framework, a risk management framework and adequate segregation of duties to ensure an
acceptable level of risk. The Company has documented Standard Operating Procedures (SOP)
for key functions such as for procurement, project/expansion management, capital
expenditure, human resources, sales and marketing, finance, treasury, compliance
management, safety, health, and environment (SHE), and manufacturing. The Company's
internal audit activity is managed through the Management Assurance Services (‘MAS')
function. It is an important element of the overall process by which the Audit Committee
and the Board obtains assurance on the effectiveness of internal controls over financial
reportings.
The scope of work including annual internal audit plan, authority, and resources of MAS
are regularly reviewed and approved by the Audit Committee. Annual internal audit plan is
aligned with ERM to ensure that all critical risks are covered in the audit plan. Besides,
its work is supported by the services of leading international audit firms. The annual
internal audit includes: monthly physical verification of inventory and review of
accounts/MIS and a quarterly review of critical business processes. To enhance internal
controls, the internal audit follows a stringent grading mechanism, monitoring and
reporting of the implementation of internal auditors' recommendations of internal audit.
The internal auditors make periodic presentations on audit observations, including the
status of follow-up to the Audit_Committee.
DETAILS REGARDING FRAUDS REPORTED BY AUDITORS UNDER SECTION 143(12)
During the year under review, neither the Statutory Auditors nor the Secretarial
Auditor has reported to the Audit Committee, under Section 143(12) of the Companies Act,
2013, any instances of fraud committed against the Company by its officers or employees,
the details of which would need to be mentioned in the Boards' report.
STATUTORY COMPLIANCE MANAGEMENT
The Company mitigates its legal and regulatory compliance risks with the help of an
online compliance management tool. It is a well-defined system for storing, monitoring and
ensuring compliances under various legislations. Non-compliances, if any, are reported and
corrective actions are taken within a reasonable time. Any regulatory amendment is updated
periodically in the system. Based on reports from the system and certificates from
functional heads, the Managing Director presents the quarterly compliance certificate to
the Board at the Board meetings.
BUSINESS RISK MANAGEMENT
The Company has formally implemented Enterprise Risk Management framework and has
policy to identify and assess the risk events, monitor and report on action taken to
mitigate identified risks. A detailed exercise is carried out periodically to identify,
evaluate, manage and monitor both business and non-business risk. The Audit Committee and
the Board of Directors periodically review the risk and suggest steps to be taken to
control and mitigate the same through a properly defined framework. Details of Risk
Management are presented in a separate section forming part of this Annual Report.
This framework, inter alia, includes identification of internal and external risks
faced by the Company, including financial, operational, sectoral, sustainability,
information, cyber security, strategic or any other risk as may be determined by the Risk
Management Committee and the measures for risk mitigation, reporting of critical risks
within the Company and Business Continuity Plan. The Risk Management Committee of the
Board comprises of Ms. Kumud Srinivasan as the Chairperson and Mr. Sandip Das, Mr. Ankit
Agarwal and Mr. Tushar Shro_ as Members.
WHISTLE BLOWER MECHANISM
The Company has established a vigil mechanism and formulated the Whistle Blower Policy
(WB) to deal with instances of fraud and mismanagement, if any. The details of the WB
Policy are explained in the Corporate Governance Report and also posted on the website of
the Company.
DISCLOSURE REGARDING PREVENTION OF SEXUAL HARASSMENT
The Company is committed to maintaining a productive environment for all its employees
at various levels in the organisation, free of sexual harassment and discrimination on the
basis of gender. The Company has framed a policy on Prevention of Sexual Harassment in
line with the requirements of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition & Redressal) Act, 2013 ("POSH Act"). The Company has also set up
"Prevention of Sexual Harassment Committee, which is in compliance with the
requirement of the POSH Act, to redress the Complaints received regarding sexual
harassment which has formalised a free and fair enquiry process with clear timeline.
During the financial year, Company received one complaint under the POSH Act which has
been closed as on the date of this Report.
The Company is already in compliance with the directions issued by the Honorable
Supreme Court of India in May 2023 for the proper implementation of POSH Act.
EMPLOYEES STOCK OPTION SCHEME
The Company's Employee Stock Option Schemes are in line with Company's philosophy of
sharing benefits of growth with the growth drivers and are in compliance with the
applicable SEBI Regulations. The Company allotted 8,23,648 shares during the year to
various employees who exercised their options. The Certificate from the Secretarial
Auditor confirming that the Scheme has been implemented in accordance with the SEBI
Regulations and the resolution passed by the shareholders would be placed at the AGM for
inspection by member.
Disclosures with respect to Stock Options, as required under Regulation 14 of the
Regulations, are available in the Annexure II to this Report, Notes to the
Financial Statements and can also be accessed on the Company's website at
https://www.stl.tech/downloads.html
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
Disclosures pertaining to remuneration and other details as required under Section
197(12) of the Act read with Rule_5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are provided as Annexure III to this Report.
A statement containing particulars of employees as required under Section 197(12) of
the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, is provided as a separate annexure forming part of this
Report. However, the Annual Report is being sent to the members excluding the aforesaid
annexure. The said information is available for electronic inspection during working hours
and any member interested in obtaining such information may write to the Company Secretary
or Registrar and Transfer Agent and the same will be furnished on request.
ANNUAL RETURN
In terms of Section 92(3) of the Act, the annual return of the_Company for the
financial year ended March 31, 2023 shall be available on the Company's website
https://www.stl.tech/investors.html
NON-CONVERTIBLE DEBENTURES
During FY23, your Company raised 100 crores through issuance of 10,000 Secured, Rated,
Redeemable, Non-Cumulative, Non-Convertible Debentures (NCDs) of face value of 1,00,000
each on private placement basis. As on March_31,_2023, the Company has outstanding
Secured, Rated, Redeemable, Non-Convertible Debentures (NCDs) of 540_crores. The Company
has maintained asset cover sufficient to discharge the principal amount along with
outstanding Interest at all times for its NCDs. NCDs are listed on the debt segment of BSE
Limited, as per the SEBI Guidelines and Listing Regulations. The details of debenture
trustee are as below–
Axis Trustee Services Limited
The Ruby, 2nd Floor, SW
29 Senapati Bapat Marg, Dadar West
Mumbai- 400 028_
Contact No.: +91- 022-6230 0438
CREDIT RATING
The Company's financial discipline is reflected in the strong credit rating ascribed by
ICRA/CRISIL:
| Debt instrument |
ICRA |
CRISIL |
|
Rating |
Outlook |
Rating |
Outlook |
| Non-Convertible Debentures |
NA |
NA |
AA |
Negative |
| Commercial Papers |
A1+ |
NA |
A1+ |
NA |
| Line of credit |
AA |
Stable |
AA |
Negative |
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the provisions of Section
186 of the Act are given in the notes to the Financial Statements.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars of conservation of energy, technology absorption and foreign exchange
earnings and outgo as prescribed under Section 134(3)(m) of the Act read with Rule 8 of
The Companies (Accounts) Rules, 2014, are given as Annexure IV to this Report.
INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the provisions of Section 124 of the Act, relevant amounts which remained
unpaid or unclaimed for a period of seven years have been transferred by the Company to
the Investor Education and Protection Fund established by Central Government. Details of
unpaid and unclaimed amounts lying with the Company as on March_31,_2023 have been
uploaded on the Company's website at_https://www.stl.tech/latest disclosure.html
TRANSFER OF ‘UNDERLYING SHARES' TO IEPF
In terms of Section 124(6) of the Act, read with IEPF Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016, the Company has transferred the equity shares in respect
of which dividends have remained unclaimed for a period of seven consecutive years to the
IEPF Account established by the Central Government. Details of shares transferred have
been uploaded on the website of the Company.
CORPORATE SOCIAL RESPONSIBILITY
The Board has constituted Sustainability and Corporate Social Responsibility Committee
(‘CSR Committee') which comprises Mr. B. J. Arun, Chairman, Mr. Sandip Das, Mr_Pravin
Agarwal and Mr. Ankit Agarwal, Members. The Board has also approved a CSR policy on
recommendations of CSR Committee, which is available on the website of the Company at
https://www.stl.tech/Code-of-Conduct-and-Policies.html As part of its initiatives under
Corporate Social Responsibility, the Company has undertaken projects in the areas of
Education, Health, Women Empowerment and Community Development during FY23.
During the year, the Company has spent 7.90 crores on CSR activities. The Annual Report
on CSR activities, in accordance with Section 135 of the Act, read with Companies
(Corporate Social Responsibility Policy) Rules, 2014 is annexed as Annexure V to
this Report.
GENERAL
Directors state that no disclosure or reporting is required in respect of the following
items as there were no transactions on these items during the year under review: a) The
Company has not accepted any deposits from the public or otherwise in terms of Section 73
of the Act read with Companies (Acceptance of Deposit) Rules, 2014 and as such, no amount
on account of principal or interest on deposits from public was outstanding as on the date
of the Balance Sheet. b) The Company has not issued any equity shares with differential
rights as to dividend, voting or otherwise. c) The Whole-time Directors of the Company do
not receive any remuneration or commission from any of its subsidiaries.
d) No significant or material orders were passed by the Regulators, Courts or Tribunals
which impact the going concern status and Company's operations in future. e) The Auditors
have not reported any matter under Section 143 (12) of the Act, therefore no details are
required to be disclosed under Section 134 (3)(ca) of the Act. f) No application has been
made under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) ("the IBC,
2016"), hence, the requirement to disclose the details of application made or any
proceeding pending under the IBC, 2016 during the year along with their status as at the
end of the financial year is not applicable. g) The requirement to disclose the details of
difference between amount of the valuation done at the timeof onetime settlement and the
valuation done while taking loan from the Banks or Financial Institutions along with the
reasons thereof, is not applicable.
ACKNOWLEDGEMENT
Directors would like to express their appreciation for the assistance and co-operation
received from the financial institutions, banks, Government authorities, customers,
vendors and members during the year under review. Directors take on record their deep
sense of appreciation to the contributions made by the employees through their hard work,
dedication, competence, support and co-operation towards the progress of our Company.
For and on behalf of the Board of Directors
| Pravin Agarwal |
Ankit Agarwal |
| Vice Chairman & |
Managing Director |
| Whole-time Director |
|
Place: Pune Date: May 17, 2023
ANNEXURE II
Details of Stock Options as on March 31, 2023
Statement as on March 31, 2023 for Employee Stock Option Scheme, 2010 as required under
Regulation 14 of the Securities and Exchange Board of India (Share Based Employee
Benefits) Regulations, 2014.
| Sr. No |
Particulars |
ESOP 2010 Scheme |
| 1. |
Date of Shareholders' approval |
July 14, 2010 |
| 2. |
Total Number of options approved |
Upto 5% of the paid-up capital of the Company |
| 3. |
Vesting Requirements |
1. The company achieving targets as per prescribed Performance Criteria |
| 4. |
Source of shares |
2. continuous employment with the company Primary |
| 5. |
Exercise price |
Options vest at a nominal value of equity shares i.e. 2 per option |
|
|
Granted options would vest over a period of five years from the date of grant. |
| 6. |
Maximum term of options granted |
Vested options are to be exercised within five year from the date of vesting |
| 7. |
Variation of terms of option |
None |
| 8. |
Option movement during the year: |
|
|
Number of options outstanding at the beginning of the year |
30,02,165 |
|
Number of options granted during the year |
16,03,514 |
|
Number of options forfeited/lapsed during the year |
7,38,200 |
|
Number of options vested during the year |
14,48,276 |
|
Number of options exercised during the year |
8,23,648 |
|
Number of shares arising as a result of exercise of options |
8,23,648 |
|
Money realised by exercise of options ( ), if scheme is implemented directly by the
Company |
16,47,296 |
|
Number of options outstanding at the end of the year |
30,43,831 |
|
Number of options exercisable at the end of the year |
6,10,633 |
| 9. |
Employee-wise details of options granted during FY23 to |
|
| I. |
Number of options granted to Senior Managerial Personnel |
None |
| II. |
Any other employee who receives a grant in any one year of option amounting to 5% or
more of option granted during that year |
Mr. Raman Venkatraman, CEO - Digital Business |
| III. |
Identified employees who were granted options during any one year, equal to or
exceeding 1% of issued capital (excluding outstanding warrants and conversions) of the
Company at the time of grant |
None |
| 10. |
Diluted earnings per share pursuant to issue of ordinary shares on exercise of Options
calculated in accordance with Ind AS 33 |
1.89 |
|
|
1.82 |
| 11. |
Method of Calculation of Employee Compensation Cost |
The Company has used fair market value method for calculation of compensation cost,
using the Black Scholes Option Pricing Model and Monte Carlo simulation model. Use of
model is based on the related vesting conditions. |
|
|
2 |
|
|
Grant I - 25.87 |
|
|
Grant II – 29.77 |
|
|
Grant III – 28.22 |
|
|
Grant IV – 48.66 |
|
|
Grant V- 79.99 |
|
|
Grant VI- 84.62 & 87.30 |
|
|
Grant VII – 103.94 |
|
|
Grant VIII- 162.87 & 92.90 |
|
Weighted average exercise price and weighted average fair values of Options granted
for options whose exercise price either equals or exceeds or is less than the market price
of the stock. |
Grant IX – 265.58 |
|
|
Grant X- 377.59 |
| 12. |
Weighted Average exercise price (per option) Weighted Average Fair value (per option) |
Grant XI – 291.97 & 134. 31 |
|
|
Grant XII- 286.53 |
|
|
Grant XIII- 136.86 & 44.32 & 22.30 |
|
|
Grant XIV – 126.69 & 63.00 |
|
|
Grant XV– 180.75 |
|
|
Grant XVI – 276.80 |
|
|
Grant XVII – 279.50 |
|
|
Grant XIX- 253.80 |
|
|
Grant XX – 139.40 |
|
|
Grant XXI – 139.80 |
|
|
Grant XXII – 175.00 |
13. Description of method and significant assumptions used during the year to estimate
the fair values of options:
a) Assumptions under Black Scholes Option Pricing:
|
Grants |
| Details |
I |
II |
III |
IV |
V |
VI |
VII |
VIII |
IX |
X |
XI |
XII |
XIII |
XIV |
XV |
| 1. Risk Free Interest rate (%) |
8.33 |
8.04 |
8.66 |
7.84 |
7.22 |
6.50 |
6.12 |
6.20 |
6.27 |
6.54 |
7.03 |
6.88 |
6.19 |
3.92 |
3.99 |
| 2. Expected Life (yrs) |
1.5 |
1.7 |
1.7 |
1.7 |
1.8 |
1.5 |
1.54 |
1.5 |
1.5 |
1.5 |
1.54 |
1.5 |
3.5 |
2.1 |
2.1 |
| 3. Expected Volatility (%) |
48.31 |
53.93 |
44.41 |
51.55 |
55.34 |
50.28 |
47.02 |
37.00 |
42.75 |
43.28 |
44.79 |
44.64 |
47.87 |
54.60 |
57.90 |
| 4. Expected Dividend Yield (%) |
0.73 |
0.79 |
0.79 |
0.59 |
0.72 |
1.14 |
0.47 |
2.20 |
1.90 |
1.30 |
1.04 |
0.69 |
1.07 |
2.5 |
2.5 |
| 5. Weighted Average Fair value ( ) |
25.87 |
29.77 |
28.22 |
48.66 |
79.99 |
84.62 |
103.94 |
162.87 |
265.58 |
377.59 |
291.97 |
286.53 |
136.86 |
126.69 |
180.75 |
|
Grants |
| Details |
XVI |
XVII |
XVIII |
XIX |
XX |
XXI |
| Risk Free Interest rate (%) |
4.35 |
4.35 |
4.67 |
7.09 |
7.09 |
7.00 |
| Expected Life (yrs) |
2.5 |
2.10 |
2.10 |
2.54 |
2.14 |
2.10 |
| Expected Volatility (%) |
55.50 |
55.80 |
49.50 |
49.10 |
43.10 |
44.70 |
| Expected Dividend Yield (%) |
2.36 |
2.36 |
2.50 |
0.78 |
0.78 |
2.50 |
| Weighted Average Fair value ( ) |
276.80 |
279.50 |
253.80 |
139.40 |
139.80 |
175.00 |
Assumptions used are as follows:
• Fair value of the options calculated by using Black-Scholes option pricing
model.
• Stock price: The closing price on NSE as on the date of grant has been
considered for valuing the options granted.
• Expected Volatility: The daily volatility of the stock prices on NSE till the
date of grant corresponding with the expected life of the options has been considered to
calculate the fair value of the options.
• Risk free interest rate: The risk free interest rate on the date of grant
considered for the calculation is the interest rate applicable for a maturity equal to the
expected life of the options based on the zero coupon yield curve for Government
Securities.
• Time of Maturity/Expected Life: Time of Maturity/ Expected Life of option is the
period for which the Company expects the option to be live. The minimum life of a stock
option is the minimum period before which the options cannot be exercised and the maximum
life is the period after which the options cannot beflexercised.
• Expected dividend yield: Expected dividend yield has been calculated on the
dividend prior to the date of the grant.
b) Assumptions under Monte Carlo Simulation model
Vesting of options is dependent on the shareholder return during the performance period
as compared to comparator group identified by Nomination and Remuneration Committee. The
Monte Carlo model requires the following variables of the company and comparator group
companies.
• Historical share price and expected volatility during the performance period
• Risk free interest rate of the country where stock of comparator group is listed
• Dividend yield based on historical dividend payments
• Estimate of correlation coe_cients for each pair of company
Assumptions used are as follows:
| Variables |
Grant VIII_ |
Grant XI |
Grant XIII |
Grant XIV |
Grant XVI |
Grant XX |
| Price of underlying stock |
172.30 |
301.75 |
145.35 |
135.40 |
295.80 |
143.85 |
| Expected volatility |
37.00% |
44.79% |
47.87% |
54.60% |
55.80% |
49.10% |
| Risk Free rate |
6.40% |
7.03% |
6.19% |
3.92% |
4.35% |
7.09% |
| Exercise Price (per Option) |
2.00 |
2.00 |
2.00 |
2.00 |
2.00 |
2.00 |
| Dividend Yield |
2.20% |
1.04% |
1.07% |
2.50% |
2.36% |
0.78% |
| Fair Value of the option |
92.90 |
134.31 |
44.32 |
63.00 & 22.30 |
145.09 & 137.99 |
36.93 & 133.40 |
ANNEXURE III
Statement of Disclosure of Remuneration
Information as required under the provisions of Section 197(12) of the Companies Act,
2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014
A. Remuneration disclosures for Executive Directors and Key Managerial Personnel (KMP)
for the financial year ended March 31, 2023
In crores
| Sr. No. |
Name of Director/ KMP and Designation |
Remuneration of Director/ KMP for Financial Year 2022-23 |
% increase in Remuneration in the Financial Year 2022-23 |
Ratio of remuneration of each Director/KMP to median remuneration
of employees |
| I. |
Whole-Time Directors/Key Managerial Personnel |
|
|
|
| 1 |
Mr. Pravin Agarwal Vice Chairman & Whole-time Director |
8.17 |
-20% |
79 |
| 2 |
Mr. Ankit Agarwal (KMP) Managing Director |
3.94 |
6% |
38 |
| II. |
Non-Executive Directors |
|
|
|
| 3 |
Mr. S Madhavan Independent Director |
0.33 |
10% |
3.2 |
| 4 |
Mr. Sandip Das Independent Director |
0.33 |
10% |
3.2 |
| 5 |
Mr. B J Arun Independent Director |
0.33 |
10% |
3.2 |
| 6 |
Ms. Kumud Srinivasan Independent Director |
0.33 |
10% |
3.2 |
| III. |
Key Managerial Personnel |
|
|
|
| 7 |
Mr. Tushar Shro_ (KMP)* Chief Financial Officer |
0.97 |
NA |
9 |
| 8 |
Mr. Mihir Modi (KMP)** Chief Financial Officer (former) |
1.50 |
NA |
15 |
| 9 |
Mr. Amit Deshpande (KMP) Company Secretary |
0.88 |
23% |
9 |
* Appointed as CFO effective December 06, 2022 ** Ceased to be CFO effective October
14, 2022
Notes:
1. Remuneration to Non-Executive Independent Directors for the above purposes
does not include sitting fees paid to them for attending Board/Committee meetings.
2. As the liability for leave encashment and Gratuity is provided on an
actuarial basis for the Company as a whole, the said amounts are not included above in the
remuneration of Directors and KMPs. The remuneration of KMPs also includes perquisites
value of Employee Stock Options (ESOPs) exercised, if any.
B. The percentage increase in the median remuneration of employees in the financial
year is 5.79% C. The number of permanent employees on the rolls of company as on
March 31, 2023 is 3140
D. Average percentile increase made in the salaries of employees other than the
managerial personnel in the last financial year viz. FY 23 was 7.05% E. It is
hereby afirmed that the remuneration paid is as per the as per the Remuneration Policy for
Directors, Key Managerial
Personnel and other Employees.
ANNEXURE IV
Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings
and Outgo required under the Companies (Accounts) Rules, 2014 for the year ended March 31,
2023.
A. CONSERVATION OF ENERGY
1. The steps taken or impact on the conservation of energy.
Rakholi Plant:
In FY22-23, various initiatives are taken up across our plants which has contributed to
decrease in energy consumption and hence the carbon footprint. a. Timer installation on
All Office AC & Street lights. b. Installation of motion sensors to the
Office_lighting. c. Installation of Portable Chillers at individual lines to save load on
main chiller to save 20000 units. d. Installation of portable compressor in dispatch &
packing areas to save load on main compressor & to save around 10000 units, 90000. e.
Water level sensors installed on all tanks to avoid water wastage due to overflow. f.
Upgraded UPS for energy saving mode to run on 20% higher efficiency. g. PHE upgraded for
Bu_ering machines to improve efficiency by 20%.
OFC Waluj:
• Revision in Electricity board power contract demand and gain annually saving on
power_bill.
• STP to recycle the water & the recycled water is used for gardening
purposes.
• Installation of latest IGBT technology UPS, which provides 95% efficiency
compare to old rectifier technology with below 90% efficiency.
• Replacement of overhead pumps of chilled water circulation with submersible
single pump, having almost half of the power_rating.
• Substantial energy saving project implemented in Sheathing lines, below 5_mpm
line speed, Extruder and caterpillar will stop functioning automatically and saving both
energy and raw material.
• Roof Top Green Solar Energy of 625kwp Installed and connected.
• Old roof lights of reliability lab are replaced will low power LED lights. Power
saved and_visibility.
• High Recovery RO plant with RO reject to usage in washroom and gardening.
• Aluminum air pipeline installed that have low friction during flow of air
thereby resulting in high efficiency of compressor and low air losses.
• Centralised Utilities Building going live expected energy saving by 10 to 15%.
• Latest technology & highly efficient equipment selection with 100%
redundancy (Dry transformer/UPS/RMU/Type Tested panels/HVAC/Cooling Towers/Pumps).
• New PEB shed with roof sky light design to reduce day time plant lighting load.
• Revamp the chilled water circulation pumping system with submersible improving
reliability of system.
• Centralised SCADA system for Utility section under new project design phase
completed.
• Machine running hours being tracked to increase the OEE of machines through
efficient planning.
• Process tanks with insulation cladding and inside FRP coating are been used for
energy loss reduction.
• Compressed air Saving:-
Buffering machines replaced with new ring knife type air wipers.
FG lines interlocked with extruder so that it will only work when extruder.
Buffering lines interlocked with take up so that it will only work when take up is on.
• Replacing old plant lights with more efficient LED light for power saving as
well to get better visibility.
• Making arrangement of lights-switching with alternate arrangements so that we
can turn on/o_ the lights as per requirement.
• DC motors of production machines are being replaced by high efficiency AC
motors. Power saving and less maintenance.
• The interlocking of Cooling tower Fan with CT sump water temperature to save fan
motor running time.
• Pressure regulators applied in FG line air wipers to get the optimum utilisation
of wipers at the lowest possible air pressure. This will save the air and thus the running
hours of the air compressors will befireduced.
• Running cooling tower with VFD's and Common Header of all CT.
• Installed the Motion Sensor/LDR and timers for office & street Light &
Air Condition Unit to reducing power consumption.
• Heat exchangers (PHE) installation for all sheathing & Buffering line in
plant to reduce the load on chillers.
• Installation of water level sensors at collection tanks to contribute towards
maintaining optimum level of water for the chillers and help towards power saving.
• HVAC system
New generation inverter compressors can be handle variable compression rations
effectively and handle variable load requirement efficiently.
The special electronic expansion valves with 3000 steps used in these systems will take
care of precise control of temperature. The machines can also precisely regulate the
capacity based on the internal loads and external ambient. The features offer phenomenal
25% annualised power saving compared to any conventional system.
• Utilising alternate sources of energy.
More Solar Power Capacity to Install on roof top and parking shed. Exploring for power
exchange alternative from solar & wind power.
• Rain Water Harvesting
Implementation of Rain water harvesting in the plant with a harvesting potential with a
provision to use water back into process.
• Food Composter machine
100kg per day installed for converting the canteen food waste in to manure.
Shendra Draw Plant:
a. Replacement of old filters in AHU. Annual Energy Saving at 37Hz is 74748 Units.
b. Descaling of MEE plant, Chiller units & cooling tower fills change. Energy
saving since July 2022 is 104483.
c. Optimisation of Chiller consumption by changing set point. Annual Energy Saving
94104 Units.
d. Automation of UV lamp push blower. Annual energy saving 13464.
e. Installation of load manager which helped in optimising contract demand. Energy
saving 3.6 Lac units.
Waluj and Gaurav Plant:
a. Installation of VFD in AHU 7, 18, 21, 31. Annual Energy Saving at 40Hz is 413849
Units.
b. Installation of 19 nos. motion sensors to the lighting. Annual Energy saving 37002
Units.
c. Optimisation of AHU consumption by changing set point. Annual Energy Saving 1.58 Lac
Units.
d. Optimisation of PAC consumption by changing set point. Annual Energy Saving 9000
Units.
e. Installation of timers for E1, E2 & E3 office_AC's.
f. Arresting the air leakages from the ducting by installation of additional nut-bolt.
& applying the silicone sealant and fill up the gaps to prevent small leakages.
g. All non-production area (service floor, admin, utility building) lights take on
timer and motion sensor.
2. The steps taken by the Company for utilising alternate sources of energy.
Rakholi Plant:
a. Working for Solar Energy with sustainability team, without any investment.
b. Installation of High Recovery RO plant, with automation and new technology.
Shendra Draw Plant:
a. Installed motion sensors in offices, service floor, battery room, UPS room, canteen,
EHS & washrooms to contribute towards saving_power.
b. Street lights operation automation.
c. Old CFL lights being converted to LED lights in phase 1 & 2 area of draw tower.
Waluj and Gaurav Plant:
a. Installed motion sensors in offices, service floor, battery room, UPS room, canteen,
EHS & washrooms to contribute towards saving power.
b. Timer installation for E1, E2, E3 office AC's.
c. Installation of VFDs in plant contributes energy saving.
d. Optimized operations of AHU & PAC units. e. Leakages arrested from ducting by
installation of additional nut bolt & applying silicone. f. Timer installation for
staircase lighting.
3. The capital investment on energy conservation equipment
a. Portable Chiller on 5 Buffering lines.
b. Portable compressor in Packing & Dispatch area.
c. New KAESAR 600 CFM Air compressors having_high power efficiency.
Shendra Draw Plant:
a. Capital investment on automation have less than half yearly payback period. It
comprises 1 to 2% saving in monthly bill.
b. Cost investment on LED lights has less than two-year payback period.
Waluj and Gaurav Plant:
a. Cost investment on motion sensors & timers have less than a year payback period.
B. TECHNOLOGY ABSORPTION
1. The efforts made towards technology absorption Technology absorption in energy
conservation Rakholi Plant:
a. Installation of AHF panel for harmonics reduction & power factor improvement
b. Upgraded UPS for energy saving mode to run on 20% higher efficiency.
c. Centralised utility energy bridge concept extended to new shop floor area.
Shendra Draw Plant:
a. New controller installation for old APFC panels for two LT Transformers for
harmonics reduction & performance improvement but atomisation.
b. Replacement of batteries of Delta ups to improve availability/reliability of panel
& power supply to phase 2 of plant
c. Switch yard Old revenue CT replacement as per new compliance of MSEDCL.
d. Grid power transformers Routine Testing & oil filtration activity. Increased the
reliability of power supply
e. Carried out HT 33kV breaker and relay testing activity. Increased the reliability of
power supply to the critical process of plant
f. Painting work of URT & LT Transformer due to corrosion, which increased its
service life span
Waluj and Gaurav Plant:
a. Installation of new APFC panels for two LT Transformers for harmonics reduction
& power factor improvement
b. Retrofitting of old APFC panels for two LT Transformers for harmonics reduction
& performance improvement
c. Replacement of H2 plant, HT capacitor (6.6kV) with new rating capacitors which
increased the availability/reliability of panel & power supply to H2 plant
d. Switch yard Old CT/PT/LA replacement work due to ageing
e. Grid power transformers Routine Testing, OLTC overhauling & oil filtration
activity. Increased the reliability of power supply
f. Carried out HT (33kV)/LT(6.6kV) breaker and relay testing activity. Increased the
reliability of power supply to the critical process of plant
g. Painting work of URT & LT Transformer due to corrosion, which increased its
service life span
h. Installation of chokes to the chiller-9 VFD. The failure rate of VFD has reduced due
to power harmonics and transient voltage spikes.
i. Ductable AC installation done in electrical building MCC room & scrubber PCC
room.
j. Annunciation panel installation done in electrical building panels gives reliability
k. Tripping circuit provided for APFC during DG running reduces recovery time during
power failure
l. Installation of timers provides reduced person activity physically
2. The benefits derived like product improvement, cost reduction, product
development or import substitution Rakholi Plant:
a. Cost reduction by installation of portable equipment for individual lines to reduce
load on main equipment like Chiller & Compressor.
b. UPS energy saving upgradation runs it on 20% higher efficiency
Shendra Draw Plant:
a. By installing load manager, the contract demand is fully optimized while maintain
the required load factor without any risk of maximum demand shoot.
b. Replacement of focus lights with LED lights provides energy saving & also
illumination.
Waluj and Gaurav Plant:
a. Optimized motor speed due to VFD installation reduces wear & tear effect of
pumps. Increased life & efficiency of pumps
b. Replacement of focus lights with LED lights provides energy saving & also
illumination.
c. Timers fixed in the electrical building staircase, Production building staircase to
avoid unnecessary wastage of power during daytime
d. Replacement of focus lights with LED lights provides energy saving & also
illumination.
e. Taking VRV Controller online (IP based) where we can control, Monitor, Schedule
On/O_ of Acs from PCs It can help to minimize power consumption & increase the motor
efficiency.
f. Temperature controller with an alarm system Installed in IT server room.
c. Rain Water Harvesting Implementation of Rain water harvesting in the plant
with a harvesting potential with a provision to use water back into process.
d. Sewage Treatment Plant e. Environment and Sustainability
3. In case of imported technology (imported during the last three years reckoned
from the beginning of the financial year) – Not_Applicable
4. The expenditure incurred on Research and Development ( crores) 41
crores
a. Foreign Exchange Earnings and Outgo
Discussion on activities relating to development of exports is covered in the
Management Discussion & Analysis Report. Foreign Exchange Actual Inflow: 3,516.37
crores Foreign Exchange Actual Outflow: 1,642.96 crores
b. Environment and Sustainability
Company's initiatives to minimize environmental footprint of products, manufacturing
and supply chain are guided by its environmental policy. The Environment Management System
of the company is ISO 14001 certified. The company has dedicated departments to manage
different environmental aspects which are responsible for managing and monitoring the
performance. The performance is evaluated periodically and future actions are planned.
|