ESCORTS KUBOTA LIMITED

Integrated Annual Report 2022-23

Spreading Prosperity. Impacting Lives.

What's Inside

06

Corporate Overview

06

Company Snapshot

  1. EKL at a Glance
  1. Our Journey
  1. Investment Case

16

Management Messages

16 CMD and DMD's Statement

24 Whole Time Director and

Chief Financial Officer Message

27

Fostering a Stakeholder- Centric Culture

  1. On Your Side for Customers
  2. On Your Side for Employees
  3. On Your Side for Investors
  4. On Your Side for Partners
  5. On Your Side for Communities

The infusion of culture from Japan and India is ready to give shape to an organisation which embeds the strengths of two legacies.

Nikhil Nanda

Chairman and Managing Director

Seiji Fukuoka

Deputy Managing Director

32

Strategic Overview

32 Business Model

  1. External Environment
  1. Strategy Planning
  1. Mid Term Business Plan 2028
  1. Stakeholder Engagement
  1. Materiality Assessment
  1. Contribution to SDGs
  1. Risk Management

58

Capital-wise Performance

58 Financial Capital

  1. Manufactured Capital
  1. Intellectual Capital
  1. Natural Capital
  1. Social and Relationship Capital
  1. Human Capital

90

Corporate Governance

  1. Board of Directors
  1. Leadership Team

104

Management

Discussion

and Analysis

124

Statutory Reports

124 Directors' Report

143 Report on Corporate Governance

177 Business Responsibility and Sustainability Report

214

Financial Statements

  1. Standalone Financial Statements
  1. Consolidated Financial Statements

More information at

www.escortsgroup.com

ON YOUR SIDE

Spreading Prosperity. Impacting Lives.

At Escorts Kubota Limited, we believe in being 'On Your Side'. From customers and investors to employees and communities, we are working collaboratively with all our stakeholders, to build stronger relationships, greater trust, and more sustainable outcomes.

Escorts Kubota Limited, a unique collaboration of two engineering giants from India and Japan have come together to achieve a common goal of driving food security, sustainable farming, and prosperity for all. With our Mid Term Business Plan (MTBP), we aim to make a lasting impact by driving farm productivity, reducing water consumption, and minimising waste.

Guided by our 'On Your Side' philosophy, we are committed to provide innovative and cost-effective solutions to customers while creating long-term value for stakeholders. Our prudent capital management with strategic decisions have helped us create consistent returns for shareholders and will continue to create long-term wealth. As a responsible employer, we prioritise fair compensation, professional growth, and a positive work environment for our employees. Our responsibility extends to uplifting communities through targeted CSR initiatives, including healthcare facilities, women empowerment programmes, and sustainable agriculture practices. Committed to reducing our environmental impact, we promote sustainable business practices through a clear ESG roadmap. Our shared vision for the future, built on cutting-edge technology, innovation, and sustainability, drives us to create value for all stakeholders.

At Escorts Kubota Limited, we proudly stand On Your Side!

ON YOUR SIDE FOR

Customers Employees Investors

Page 27Page 28Page 29

Partners

Communities

Page 30

Page 31

About

the Report

The Integrated Report of Escorts Kubota Limited ('EKL' or 'Escorts Kubota' or 'Escorts' or 'Company') for Fiscal year 2022-23 is second Integrated Annual Report,

titled 'On Your Side, Spreading Prosperity. Impacting Lives.' to our stakeholders. The Report highlights our financial and non- financial performance across the pillars of Environmental, Social, and Governance (ESG) through key- performance indicators. The Report details how we delivered consistent performance across our business segments throughout the year.

We showcase our commitment to materiality issues, transparency and integrity through our Integrated Report . The Report provides relevant information to our stakeholders on our MTBP-Mid Term Business Plan and ability to create value and demonstrating our capacity to grow and our capability to adapt to various scenarios.

Reporting Framework

The Report was prepared in reference to the following standards and guidelines:

  • International framework of the Value Reporting Foundation
  • Global Reporting Initiative (GRI) Standards
  • United Nations Sustainable Development Goals (UN SDGs)
  • The Companies Act, 2013 and the rules made thereunder
  • Indian Accounting Standards
  • Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

At Escorts Kubota Limited, we emphasise our commitment to the United Nations Sustainable Development Goals (SDGs) and our role in their implementation. Throughout this report, references are provided for the specific SDGs that align with our initiatives and efforts.

Reporting Scope and Boundary

This Report covers the reporting period between April 1, 2022, to March 31, 2023 and reflects our standalone operations, unless stated otherwise. In this, we aspire to provide an incisive view of our performance and strategy across business segments. The content of this Report depicts both quantitative and qualitative disclosures on our performance and our ability to create value across six capitals.

Financial

Capital

Read more on_pg 58

Manufactured

Capital

Read more on_pg 60

Intellectual

Capital

Read more on_pg 62

Natural

Capital

Read more on_pg 64

Social &

Relationship Capital

Read more on_pg 70

Human

Capital

Read more on_pg 78

Forward-looking Statements

This Report contains statements about expected future events and financials of Escorts Kubota Ltd., which are forward-looking. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions, and other forward-looking statements may not prove to be accurate and actual future results and events may differ materially from those expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update these forward-looking statements which reflect events or circumstances, after the publication of this document.

Precautionary Approach

We follow a precautionary approach towards minimising our operational impact on the environment. We

have implemented best-in-class technology for our manufacturing operations to limit our ecological footprint, and we continue to enhance our efforts towards

the same. At all our plants, we have implemented Environment, Health and Safety (EHS) management systems to monitor and address any concerns.

Responsibility Statement

The Board of Directors/senior leadership of Escorts Kubota Ltd. acknowledges their responsibilities to ensure the integrity of this Integrated Report. We believe that the Report addresses all material issues and presents the performance of the Company as well as the value created for all stakeholders in a fair and accurate manner.

This year your Senior leadership as per the mandate of the Board of Directors of the Company, has also decided to seek limited assurance of this integrated Report to ensure reasonable correctness of the data being reported to

the Stakeholders.

Feedback, questions, or comments on this report are welcome. We encourage you to please email us at investor.relation@escortskubota.comfor feedback on our business performance for suggestions or enquiries on our sustainability performance.

Investors Relations

Corporate Centre, 15/5, Mathura Road,

Faridabad - 121 003

Telephone No.: +91 129 2250222

Email:investor.relation@escortskubota.com

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Disclaimer

Escorts Kubota Ltd. published this content on 21 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2023 14:27:04 UTC.