This Code of Business Ethics and Conduct has been adopted by the Board of Directors of the Company in terms of the requirement of Clause 49 of the Listing Agreement. All Directors and Senior Management must act within the bounds of the authority conferred upon them and with a duty to make and enact informed decisions and policies in the best interests of the Company and its stakeholders.  This Code governs the Conduct of the Board and its Senior Management both with the letter and spirit of this Code.  Each such person should become familiar with its provisions.

The Board appoints the Company Secretary as a compliance Officer for the purpose of this Code, who will be available to the Directors and Senior Management to answer questions and offer explanation on this Code and to help them comply with this Code.

Ethical business Conduct is critical for our business and its growth.  As a Director/ Employee, your responsibility is to respect and adhere to these practices and other Board policies and values. Many of these practices reflect legal or regulatory requirement. Violations of these laws and regulations can create significant liability for you, your Company, its Directors, officers and other employees.

These principles described in this Code of Conduct are general in nature and, therefore, you should also review all applicable Company policies and procedures  for more specific instructions, and contact the Secretarial Department for any clarifications.

The Board of Directors reserves the right to amend, alter or terminate this Code at any time and for any reason.

The Board of Directors and the Senior Management (hereinafter jointly and severally known as “Board/Senior Management”) should Conduct their activities in line with the following policies laid down by the Code and adhere and seek compliance thereto.

National Interest

The Board/Senior Management shall be committed in all its actions to benefit the economic development of the countries in which it operates.  It shall not engage in any activity that would adversely affect such an objective.  It shall not undertake any project or activity to the detriment of the nation’s interest, or those that will have any adverse impact on the social and cultural life patterns of its citizens.  The Board/Senior Management shall Conduct its business affairs in accordance with the economic, development and foreign policies, objectives and priorities of the national government, and shall strive to make a positive contribution to the achievement of such goals at the international, national and regional level, as appropriate.

Financial reporting and records

The Board/Senior Management shall prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the Company or its subsidiaries conducts its business affairs.

Competition

The Board/Senior Management shall fully strive for the establishment and support of a competitive, open market economy and shall co-operate in the efforts to promote the progressive and judicious liberalization of trade and investment by a country. Specially, the Board/Senior Management shall not engage in activities, which generate support unfair trade practices.

Equal opportunities employer

The Board/Senior Management shall provide equal opportunities to its employees and all qualified applicants for employment, without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability and veteran status. Employees of the Company shall be treated with dignity and in accordance with the values/policies of Eimco Elecon (India) Ltd. to maintain a work environment free of sexual harassment, whether physical verbal or psychological.

Gifts and Donations

The Directors and the Senor Management shall neither receive nor offer or make, directly or indirectly, any gifts, donations or comparable benefits which are intended to or perceived to obtain undue favours in the transactions detrimental to the interest of the company, except for nominal value, which are customarily given and are of commemorative nature for special events and should never be of a kind that could create an appearance of impropriety.

Political non-alignment

 
The Board/Senior Management shall be committed to and support a functioning democratic constitution and system with a transparent and fair electoral system in India. The Board/Senior Management shall not support, directly or indirectly, any specific political party or candidate for political office.

Health, safety and environment


The Board/Senior Management shall strive to provide a safe and healthy working environment and comply, in the Conduct of its business affairs, with all regulations regarding the preservation of the environment of the territory it operates in. The Board/Senior Management shall be committed to prevent the wasteful use of natural resources and minimize any harzardous impact of the development, production, use and disposal of any of its products and services on the ecological environment.

Quality services

The Board/Senior Management shall be committed to render services of the highest quality standards, backed by efficient after-sales service consistent with the requirements of the customers to ensure their total satisfaction. The quality standards of the company’s services should meet the required international standards.

Co-operation with Associate/Group Companies

The Board/Senior Management shall co-operate with other Associate/Group Companies by sharing physical, human and management resources as long as this does not adversely affect its business interests and shareholder value.

Third-party representation

Parties which have business dealings with Eimco Elecon (India) Ltd. group but are not members of the Group, such as consultants, agents, sales representatives, distributors, contractors, suppliers etc. shall not be authorized to represent the company, if their business Conduct and ethics are known to be inconsistent with this Code.