Sustainability

S u s t a i n a b i l i t y
R e p o r t
2 0 0 9 - 1 0
KIRLOSKAR BROTHERS LIMITED
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Sustainability
KIRLOSKAR BROTHERS LIMITED
Yamuna, Survey No. 98 (3-7) Baner, Pune ( INDIA) 411045
CMDs Message
Kirloskar Brothers Limited, a pioneer in the field of
manufacture of engineering goods, has specialized in
the production of fluid handling equipment to vital
sectors of our country and the world.
We have been pursuing many initiatives for the
conservation of natural resources which has been the
focus area for not only cost reduction and maintaining
our competitive edge but also to ensure that our
business is sustainable. We would like to plan for
balanced growth in a manner that when we achieve
our economic targets, we also support the society and
the environment.
Sustainability Reporting is demonstration of our
commitment to protect the environment and contribute
to society as a responsible corporate citizen.
We will measure our performance for sustainability
based on globally accepted standards and find ways to
reduce the adverse impact on the environment on a
continual basis.
World over, companies have become more conscious
of their responsibility towards society and the
environment and there are various reporting
frameworks available. We will continue to incorporate
relevant aspects from global standards and work
towards assessment of the carbon footprint of our
operations and activities. This will become the
foundation to find ways to reduce our impact on the
environment on a continual basis.
Our world faces a challenge related to climate change
and every organization will need to contribute and
define the norms for sustainable business. While the
challenge is great, we are confident that this will be a
small step towards achieving the final goal of doing
business in a socially and environmentally responsible
way.
Sanjay C Kirloskar
Chairman and Managing Director
1
Description of Key Impacts, Risks and
Opportunities:
Kirloskar Brothers Limited has been growing
consistently and it has achieved its targeted sales
revenue for the year 2009-10 with a growth rate of
over 10% for the year.
The company celebrated the Centenary Year of its
establishment at Kirloskarvadi in 2010. To match the
occasion a dividend of 275% was declared for the
year.
Profitability has always been under pressure due to
higher material costs than targeted. This was a result
due to adverse sales mix as compared to projected
sales mix.
Return on capital ( ROCE) achieved was 19.2% as
compared to target of 21.2%.
We have identified a number of risks over the period
which are of critical importance to our company. Risks
are based on their impact on the company's business
and likelihood of their occurance. The risk
management committee formed for the purpose takes
stock of these anticipated risks and plans for necessary
mitigation measures for identified risks. The company
has successfully mitigated a number of risks with the
help of the risk control system.
The company has identified following growth drivers:
Rising cost of energy will lead to growth of energy
efficient pumping solutions
Scarcity of drinking water will lead to increasing
demand for better water and waste water
management technologies and solutions.
Desalination and various filtration technologies are
witnessing huge demand globally
Opportunity of irrigation projects in developing
countries like Africa, Latin America and Asia.
The company has organized itself in 9 customer centric
sectors and this will provide growth on a larger scale
for each of the sectors.
The manufacturing plants will focus on innovation and
cost leadership through operational excellence. The
plants will also focus on expanding production
capacities to meet market requirements and gain
higher market share.
2
Name of the Organization:
Primary Brands, Products and Services:
Kirloskar Brothers Limited is one of the worlds leading
manufacturers of Pumps and Valves for water and
other fluids, Hydraulic Turbines and Fire Fighting
pumps. The company also undertakes turnkey
projects.
Kirloskar Brothers Limited manufactures centrifugal
pumps with flow rates ranging from 2 cubic meters per
hour to 120 000 cubic meters per hour and delivery
head from 24 meters to 850 meters. These pumps are
single stage or multi stage and find applications in
domestic, agriculture, industry, irrigation and utilities.
Kirloskar Brothers Limited also manufactures valves
from size ranging from diameters of 100 mm to 4000
mm.
The company manufactures hydraulic turbines for the
hydro electric power generation.
Kirloskar Brothers Limited takes up projects as an EPC
contractor for various sectors like irrigation, water
supply, power and oil and gas.
Kirloskar Brothers Limited has a subsidiary in the UK
called SPP Pumps Limited which specializes in
manufacture of fire-fighting pumps and systems.
Kirloskar Corrocoat Private Limited is a joint venture
between Kirloskar Brothers Limited and Corrocoat of
UK. It manufactures corrosion resistant coatings for
various mechanical components exposed to water and
corrosive environments.
subsidiary which specializes in various civil
construction projects like roads, tunnels, oil and gas
pipe lines etc.
Gondwana Engineers Limited is a subsidiary which
specializes in providing solutions for drinking water
supply and waste water (domestic sewage) treatment
on EPC basis to State and Central Government
agencies.
The Kolhapur Steel Limited is a subsidiary which
manufactures steel castings up to 25 tons.
Kirloskar Construction and Engineers Limited is a
3
Organizational Profile
Our manufacturing plants
Yamuna LEED Platinum rated Corporate Office
Kirloskarvadi
Dewas
Shirwal
Kondhapuri
Business Areas and Operational Structure:
Nature of Ownership and Legal form:
Markets Served:
Kirloskar Brothers Limited has 4 manufacturing plants
in India which manufacture pumps, turbines and
valves. These are located at Kirloskarvadi,
Kondhapuri, Shirwal in Maharashtra and Dewas in
Madhya Pradesh
It has following subsidiaries and Joint ventures which
add value and facilitate its diverse range of activities:
Kirloskar Ebara Pumps Limited
The Kolhapur Steel Limited
Kirloskar Corrocoat Limited
Kirloskar Construction Engineers Limited
Gondwana Engineers Limited
SPP Pumps Limited
Kirloskar Brothers Limited is a public limited company
listed on 2 stock exchanges, Bombay Stock Exchange
and National Stock Exchange of India Limited.
Kirloskar Brothers Limited has major operations in
India with export to more than 90 countries. This report
gives details of the Indian operations.
The following key elements provide the picture of scale
of the organization:
Element Size/Number/Value
Number of Permanent Employees 2359 [ Staff + Workmen]
Net Sales FY2009-2010 Rs Million
Volume of Products Sold
20178
Power Driven Pumps: 279,414 Nos
Valves: 28,892 Nos
Turbines: 6 Nos.
Electric Motors: 24,123 Nos
Alloy Iron Castings
including Steel Castings including cast
iron castings: 875 Metric Tons
Total Net Current Assets Rs. 5942.1 Million
Gross Debt Rs. 3572.4 Million
Share Capital Rs. 159 Million * refer note below
Largest Shareholder Promoters
st
as of 31 March 2010
*The Scheme of Arrangement between KBL and Kirloskar
Brothers Investments Ltd. (KBIL) and their respective
shareholders, has come into effect on March 2, 2010, upon
getting all statutory approvals. Pursuant to the said Scheme,
certain investments in shares held by KBL, stands transferred
and vested in KBIL without any further act or deed and be
deemed to have been transferred to and vested in KBIL. The
Company has issued and allotted shares, after reduction of
capital to the shareholders pursuant to the Scheme of
Arrangement. The trading permission for Company's shares
has been received.
During the last 12 months there has not been any
significant change in the size, structure or ownership.
The corporate office is located at following address:
Kirloskar Brothers Limited
Yamuna Survey No. 98(3-7)
Baner, Pune 411 045 ( Maharashtra) INDIA
The company has following overseas operations :
Kirloskar Brothers International BV
Kirloskar Brothers Europe BV
Kirloskar Brothers (Thailand) Limited
Kirloskar Brothers Egypt
Following Business Related, Process Related and
Individual awards have been received by Kirloskar
Brothers Limited:
1. CII- EXIM Bank recognition in the category of
Strong Commitment to Excel for 2009.
2. CII TCM Division has given Level 4- rating to
Dewas Plant of Kirloskar Brothers Limited for Total
Cost Maturity Model
3. Golden Peacock Award for Corporate Social
Responsibility for the year 2010
4. Best Pavillion Award in Power India Exhibition
2009 at Bandra Kurla Complex, Mumbai, during
24.11.09 to 26.11.09 in 54 square meters
category.
5. LEED Platinum Rating for Green Building to
Yamuna' awarded by Indian Green Building
Council.
6. CII Energy Conservation Award for Kirloskarvadi
Plant
7. Golden Peacock award for Innovation
Significant Changes during the reporting
period regarding size, structure or ownership:
Location of Organizations Headquarters:
Number of countries in which organization
operates with major operations:
Awards received in the reporting period:
4
Reporting Period for information provided:
Date of most recent previous report:
Reporting Cycle
Contact points for questions regarding the
report or its contents:
Process of defining report content
The information provided in this report is for the
financial year 2009-2010.
This is the first report in as per the GRI G3 guidelines.
The reporting cycle for this GRI report is Annual.
Mr Pradip Khisti
Associate Vice President
Corporate Quality Assurance
Kirloskar Brothers Limited
Yamuna, Survey No. 98(3-7)
Baner , Pune 411045
e-mail : pradip.khisti@kbl.co.in
Phone: (020) 27214255
Mr N M Ingle
General Manager
Business Excellence
Kirloskar Brothers Limited
Yamuna, Survey No. 98(3-7)
Baner , Pune 411045
e-mail: nishikant.ingle@kbl.co.in
Phone: (020) 27214259
This Sustainability Report is for the period April 2009 to
March 2010, which is the financial year in India. We
are committed to publish such report every year. It may
be integrated with the annual financial report from
next year. This report includes both core and additional
performance indicators of Global Reporting Initiative
Generation 3( GRI- G3) guidelines, as applicable to
the Company. The report focuses on strategy of the
company in relation to its Economic, Environmental
and Social responsibility.
The Company intends to contribute to society through
issues of Health and Education addressed in
Millennium Development Goals (MDGs) of the United
Nations.
Report Parameters
5
Boundary of the report
Specific limitations on the scope or boundary of
the report
Basis for reporting on joint ventures,
subsidiaries, leased facilities, outsourced
operations, and other entities that can
significantly affect comparability from period to
period and/or between organizations
Data measurement techniques and the bases
of calculations
This report includes information related to Kirloskar
Brothers Limited which has 4 manufacturing plants and
a Corporate Office in Pune. In the coming years we will
extend the scope of reporting on the important
indicators for regional offices and also extend this to
major subcontractors and suppliers where company
may have significant control and influence.
The report here does not cover all the indicators of the
GRI G3 guidelines as tracking of some of the
indicators is in progress and will be covered in
subsequent reports.
The information reported here is sourced from the
Annual Report of Kirloskar Brothers Limited for the
year 2009-2010 ending March 2010
Kirloskar Brothers Limited has implemented SAP
enterprise resource management system. Various
modules related to Finance, Production Planning,
Materials Management, Sales and distribution and
Quality Management are implemented. Most of the
data is retrieved from the SAP system.
The financial data has been sourced from the Annual
Report. The financial processes and quality
management processes related to ISO 9000,
ISO14000, ISO18000 are audited by the internal as
well as external auditors.
The table is covered at the end of this report.
This report is not subjected to external assurance.
Explanation of the effect of any re-statements
of information provided in earlier reports
Significant changes from previous reporting
peri ods i n the scope, boundary, or
measurement methods applied in the report
Table identifying the location of the Standard
Disclosures in the report GRI Index Assurance
External assurance statement
This is not applicable as this is the first report.
This is not applicable as this is the first report.
6
Name of the Committee

Role
Audit Committee The Audit Committee functions according to its terms of references
Containing its powers, scope and role in accordance with the
provisions of Companies Act, 1956, listing requirements
applicable to the Company. The same is reviewed from time
to time. The full terms of references are available on
Companys website under Annual Report.
Remuneration
Committee

Review and decide the remuneration of the Managing Director
and the Executive Directors. Suggested disclosures as per
clause 49 of the Listing agreement are made in Annual Report.

Investors Grievance
Committee

Oversee the redressal of investors complaints pertaining to
share transfers, non-receipt of annual reports, dividend payments,
issue of duplicate certificates, transmission (with and without
legal representation) of shares and other miscellaneous
complaints. The status of complaints and their redressal is
disclosed in the Annual Report.
Governance Structure including responsibility
for sustainability
Number of members of the highest governance
body that are independent and/or non-
executive members
The terms of reference of the audit and finance
committee have been provided in the report on
Corporate Governance Appearing in the Annual
Report 2009-10.
The audit committee is constituted with 4 independent
directors and 1 non-executive director. The
remuneration committee is constituted with 3
independent directors and 1 non-executive director.
The shareholders committee is constituted with 2
independent directors and 1 executive director.
The respective committees independently function in
the area assigned to them.
There are 7 independent and non-executive members
on the Board of Directors of the company.

Governance:
Commitments and
Engagement
7
Mechanisms for shareholders and employees
to provide recommendations or direction to the
highest governance body
Shareholders / Investors / Stakeholders
A monthly report on shareholders complaints and
responses thereon, is prepared by the secretarial
department which is then placed before Investors'
Grievance Committee meeting.
Investors' Grievance Committee reviews investor
grievance redressal procedure and provides guidance
on protection of the interests of the investors.
On recommendations of the Investors' Grievance
Committee, the Company has taken various investors
friendly initiatives like sending nominations forms,
arranging factory visits, etc. Critical feedback,
complaints and suggestions received from investors
are considered appropriately and addressed. A
quarterly report on shareholders complaints is placed
at Board meeting.
The Company has whistle-blower and prevention of
sexual harassment at work policies for all the
employees and stakeholders in place. Awareness is
being created amongst all the concerned by
workshops held across all the places of business of the
Company.
Information is available to the shareholders through
Organisation Sturcture
CHAIRMAN & MANAGING DIRECTOR
WHOLE TIME DIRECTOR
CORPORATE
FINANCE
CORP.FUNCTIONS
WHOLE TIME DIRECTOR
SECTORS
GLOBAL
SOURCING
R&D
QUALITY
ASSURANCE
IRRIGATION
POWER
WATER
RESOURCE
MANAGEMENT
CORP.FUNCTIONS SECTORS MANUFACTURING
INFORMATION
CENTER
GLOBAL
MARKETING
&Strategy
INSTITUTIONAL
INTERNATIONAL
BUSINESS
AFTER SALES
& SERVICE
DISTRIBUTION
KONDHAPURI
(VALVES)
DEWAS &
SHIRVAL
KIRLOSKARVADI
SECRETARIAL &
LEGAL
Corp. Human
Resource
MARINE &
OIL & GAS
INDUSTRY
BUILDING &
CONSTRUCTION
Annual Reports and half-yearly communications,
besides release of unaudited quarterly financial
statements, under intimation to Stock Exchanges. An
analyst meeting is arranged every quarter to discuss
the quarterly financial results. This information is also
available on the Company's website. A business
overview which is a part of the Directors Report
under Management Discussions & Analysis (MDA),
reviews Indian & global markets with their impact on
the company business. MDA also includes sections on
the Strategy and Policy, International Business and
Strategy, Sustainability and Growth Initiative, Risks and
Concerns, Operating and Sectoral Performance,
Research and Development activities, Financial
performance, Human Resource Management,
Corporate Social Responsibility and Internal Control
Systems.
Channel partners/Suppliers:
A Supplier Relationship Management programme and
Dealer Management System are in place and the
Management Committee reviews the programme
from time to time. The key indicators of review are
supplier coverage and the efficiency of transactions
with the Company.
The Company also organizes vendor meets where
suppliers can touch base with senior management and
share their thoughts and inputs.
Corp. Internal
Audit
8
Employees
The Management Committee reviews the employees'
issues on a regular basis. One to one feedback,
employee satisfaction, employee growth plan and
organization culture are discussed in these meetings.
The Board is also kept informed of senior level changes
in management, status on signing of Union wage
agreements, remuneration of senior executives, etc.
The Company is also planning to implement a
comprehensive Customer Relationship management
program which is being reviewed by the Management
Committee. This program ensures that the Customers
are treated in a fair manner and their needs are also
captured and responded to through this programme.
The performances of the Whole-time Directors are
evaluated / reviewed by the Remuneration Committee.
The Company pays remuneration by way of salary,
perquisites and allowances (fixed component),
incentive remuneration and commission. The
Company has granted options under ESOS to all its
Directors. Approval of the shareholders is obtained for
payment of remuneration to the Executive and
commission to Non-Executive Directors and adequate
disclosures on terms of appointment, tenure and
remuneration are included in the Explanatory Notes to
the Notice of the General Meeting. The Report on
Corporate Governance in the Annual Report contains
details of the remuneration drawn by the Whole-time
Directors. Remuneration by way of commission paid to
the Non Executive Directors is decided by the Board of
Directors and distributed to them based on their
attendance and contribution at the Board and
Committee meetings. Approval of the shareholders is
taken for payment of commission to Non-Executive
Directors which is within the limits prescribed under the
Companies Act, 1956. Appropriate disclosures are
made in the notice of the General Meetings. The
Annual Report also contains details of the
remuneration paid to the Directors - both Executive
and Non-Executive Directors.
To ensure that no conflict of interests arise among the
highest governing body, transparency in operations
Customers:
Linkage between compensation for members
of the highest governance body, senior
managers, and execut i ves, and t he
organisation's performance (including social
and environmental performance)
Processes in place for the highest governance
body to ensure conflicts of interest are avoided
and disclosure policies for governance is maintained.
Proper and timely disclosures are made to public
through stock exchanges and circulation in news
papers, regarding disclosure of price sensitive
information. Every year the Board members and senior
management personnel provide declaration on their
compliance with the Code of Conduct.
Directors are selected based on the following criteria:
Qualification and Expertise in the field
Business experience and achievements
Ability to bring in the external perspective
Being a global player, Kirloskar Brothers Limited has its
Vision, Mission and Value statements in place.
Workshops at various levels to create awareness
amongst the employees are being conducted for core
values. Further it has ensured that its corporate
governance practices are compatible with the best in
the Country.
Kirloskar Brothers Limited has adopted Ravi Kirloskar
Process for determining the qualifications and
expertise of the members of the highest
gover nanc e body f or gui di ng t he
organi sati on' s strategy on economi c,
environmental, and social topics
Mission statement, company values and codes
of conduct

The Mission, Vision and Values of Kirloskar Brothers

Limited are given below:
Mission
Kirloskar Brothers Limited shall be known
globally as a reliable, innovative and cost
effective solution provider in Hydraulic Machines
& Systems and in Water Business
Vision
Kirloskar Brothers Limited shall be amongst the
first five pump companies in the world by the year
2015 and become the preferred choice of
Customers as well as Employees.
Values:
- Developing and Working with Mutual Trust
- Building and nurturing Teamwork
- Assessi ng and Enhanci ng Empl oyee
Satisfaction Level
- Giving the Best to Customer and giving Value
for the Money
- Enhancing Relation with Stakeholders
Maintaining Fairness in Dealing with Customers
and Suppliers
9
Quality Prize on the basis of the CII-EXIM Bank award
model for Business Excellence as a means for driving
excellence. In order to track process on long-term
strategic goals, a Balanced Score Card methodology
is used. This enables the Company to go beyond
financial performance to incorporate considerations
of environment and society.
There is a structured process for risk assessment and
risk mitigation. A committee consisting of senior
leaders is constituted to identify the risks for business.
All the officers i.e. general manager and above are
involved in the assessment of risk and its likely impact
on the business. This committee periodically reviews
risks and actions are planned and implemented to
minimize them. The Audit Committee and the Board
takes review of the total process of risk management in
the organization. The Audit Committee also reviews
the adequacy of internal control systems with the
Management, External and Internal Auditors.
Management then implements actions to mitigate
residual risks. The Management is accountable for
integration of risk management practices into day to
day activities. The risk management and internal
controls framework adopted by the Company provides
the Board a reasonable assurance on the effectiveness
and efficiency of the Company's operations, the
safeguarding of the Company's assets and the
Company's compliance with laws and regulations.
The organisation has adopted the Balanced Scorecard
concept and a Performance Appraisal System which is
fairly transparent and formal procedure for deciding
di rect or, seni or and mi ddl e management
remuneration.
The company has formed a Risk Management
Committee to identify risks at the company level. Risks
are propritized and risk owners are assigned the
actions to be taken to mitigate the risks and reduce the
impact and likelihood of these risks.
The company has implemented a review of projects for
Procedures of the highest governance body for
overseeing the organisation's identification
and management of economic, environmental,
and social performance, including relevant
risks and opportunities
Processes for evaluating the highest
governance body' s own performance,
particularly with respect to economic,
environmental, and social performance
Implementation of the precautionary principle
significant concerns related to cost, quality or time and
these are addressed at the highest level of the
management.
The Corporate Research and Development
department along with product engineering, develop
new products based on customer expectations,
performance of existing products and market analysis.
Each business sector has made new product
development plans and the contribution of new
products as a % of sales stands at 20%.
Kirloskar Brothers Limited intends signing the United
Nations Global Compact. Through this voluntary
initiative, the Company commits itself to the ten
principles that range from Human Rights protection,
Labour Standards, Environmental Protection and Anti-
Corruption.
Kirloskar Brothers Limited is a member of leading
industry associations like CII (Conference of Indian
Industries), FICCI (Federation of Indian Chambers of
Commerce and Industries) and ASSOCHAM
(Association of Chambers of Commerce of India).
Kirloskar Brothers Limited has signed following :
CII Code of Affirmative Action for the
underprivileged class.
CII Code for Ecologically Sustainable
Business Growth
CII - Head Africa Committee
MCCIA - Executive Committee
Kirloskar Brothers Limited's various stakeholders are
listed below:
Shareholders
Ext er nal l y devel oped economi c,
environmental, and social charters, principles,
or other initiatives to which the organisation
subscribes or endorses
Member shi ps i n associ at i ons and/ or
national/international advocacy organizations;
List of stakeholder groups engaged by the
organization
Examples of stakeholder groups are:
Communities;
Civil society;
Customers;
Shareholders and providers of capital;
Suppliers; and
Employees, other workers, and their trade
unions.

10

Stakeholder Stakeholder Engagement Processes
Shareholders Annual General Body Meeting, One-to- one meetings.

Customers Surveys. Focus Groups, One-to-one meetings.
Suppliers and vendors Surveys. Focus Groups. Workplace assessments. One-to-one
meetings.

Employees Surveys. Focus Groups. Workplace assessments. One-to-one
meetings. On-line feedback and discussion
Families of Employees
Trade Unions Workplace assessments. One-to-one meetings.

Other Workmen One - to - one meetings.


Representatives of
Society/ NGOs
One - to - one meetings.


Financial Institutions
and Bankers
One - to - one meetings.


Government
Bodies/Local Bodies
One - to - one meetings.

Media One - to - one meetings.
Customers
Suppliers and vendors
Employees
Families of employees
Trade Unions
Other Workmen
Representatives of Society and social
organizations/NGOs
Government Bodies/ Local bodies
Financial Institutions/ Bankers
In identifying the stakeholders for this report we have
considered factors of Materiality Analysis and the
extent and interaction intensity.
Media
Citizens of countries where it has operations
Basis for identification and selection of
stakeholders
Approaches to stakeholder engagement,
including frequency of engagement by type
and by stakeholder group
Statements on key concerns raised by
stakeholders and how organization has
responded to those key topics and concerns,
including through its reporting.
The company has appointed a professional agency to
manage the shareholder correspondence. Company
regularly monitors the performance of the said agency.
Company has provided draft formats of frequently
used documents on its website for shareholders. The
company has one designated e-mail address for
redressal of shareholder grievances. The number of
grievances received and replied by the company are
published in the newspaper every quarter with
financial results.
The Company conducts customer perception surveys,
customer meets to understand their needs and
concerns. Similarly employee surveys and regular
feedbacks help understand their expectations and
concerns. Specific action plans are implemented to
address these concerns.
11
Net Fixed Assets 2927
Investments 1902
Net Current Assets 5942
Intangible Assets 14
Total Assets ( Net) 10786

Loans 3572
Net Worth 7133
Share Capital 159
Reserve 6905
Employee Stock Options Outstanding 69
Summarized Balance Sheet:
Rs. In Million
Direct Economic Value Generated

The Details of the revenue and its distribution is
presented in pie-chart below:
Economic Performance
The consolidated financial statements are given in
detail in the Annual Report 2009.
For the financial year ended on March 2010, the
company's subsidiaries and associated companies
have improved the sales from Rs 24257 Million in
Financial year 2009 to Rs 26589 Million in the
financial year 2010. This is 9.6% growth over previous
year. The profits after tax have also increased from Rs
833 Million in financial year 2008-09 to Rs 1132
Million in financial year 2009-10. The profitability has
improved from 3.43 % to 4.25% on aggregate basis.

2445,12%
14987,74%
Interest
Dividend
Depreciation
Reserve
Employees
Operation & Other Expenses
Taxes and Duties
Materials
554,3%
335,2%
500,2%
265,1%
300,2%
895,4%
All Values Rs. In Million and %
12


Sales 20178
Other income 479
Expenditure
Materials 14986
Employee Cost 895
Operating and other expenses 2448
Depreciation 264
Total Expenditure 18930
Profit before tax 1730
Profit after tax 1175
Balance brought forward from previous year 530
Appropriations
Proposed dividend 436
Additional tax on diviedend 64
General Reserve 300
Surplus carried to Balance Sheet 905
Summarized Profit and Loss Account:
Rs in Million
Financial implications and other risks and
opportunities for the organisation's activities
due to climate change
Coverage of the organisation's defined
benefit plan obligations
Significant financial assistance received from
the government
Range of ratios of standard entry level wage
compared to local minimum wage at significant
locations of operation
Procedure for local hiring
Availability of power is limited which will impact the
use of pumps.
Scarcity of water and increasing requirement of
drinking water will provide opportunities for water
treatment plants.
Demand for energy efficient products like 5 star
rated pumps will increase.
The company has received no financial assistance
from the government during the reporting period.
In most of the cases the wages to permanent workmen
are 2 times to 2.5 times of the prescribed minimum.
This is to compensate for the skill and the tenure of
service.
Major areas of operations in India lie in Kirloskarvadi,
Kondhapuri and Shirwal in Maharashtra and Dewas
in Madhya Pradesh. Our survey of the data indicates
that more than 70% of our employees belong to local
areas. While there is no documented policy for local
hiring, in order to ensure longer retention, candidates
belonging to local area are welcome to join the
organization subject to their meeting job requirements.
13
Hyderabad water supply pump house
Chennai metro water supply pump house
Panjarpol (Mumbai) water supply pump house with
sound proof enclosures
Development and impact of infrastructure
investments and services provided primarily for
public benefit through commercial, in kind, or
pro bono engagement
Indirect economic impacts, including extent of
impacts
Infrastructure related to Bank ATM, Post Office,
School, Hospital, Social Club, Sports facility are
provided to public at Kirloskarvadi.
Financial assistance for creating infrastructe at schools
and colleges near Kirloskarvadi,
Impact of energy efficient products : the Companies
energy efficient products and services lead to
significant economic savings for users.
In various sectors our products have generated in
direct employment for many people.
14
LLC (Lowest Life Cycle Cost) Pumps: A KBL
Strategy for sustainability
The initial capital costs for a pumping installation are a
fraction of the whole life cost. The cost of Energy,
unplanned downtime resulting in loss of productivity
and lower life expectancy of the consumable parts
such as seals and bearings can account for as much as
80% of the total life cycle cost. The following are the
costs associated with a pumping installation:
Initial Cost
Installation and Commissioning (Start-up) Cost
Energy Cost
Operating Cost cost of labor to operate the
pumping installation
Maintenance and Repair Cost : depends on the
time and frequency of service and the cost of
materials .
Downtime and Loss of Production Cost
Environmental Cost
Disposal Cost
Kirloskar Brothers Limited (KBL) and its subsidiary SPP
Pumps, UK have introduced 'Lowest Life Cycle Cost
(LLC) concept' into the market for
Vertical Turbine Pumps and
Split case pumps
These pumps are designed for longevity and
incorporate many standard features, which facilitate
ease of maintenance.
These pumps offer significant savings for the energy
and maintenance costs and therefore while their initial
cost is high the payback period is about 1.5 years to 3
years.
The reliability and long life is achieved by high L10 life
bearings having more than 50000 hours of life.
The design allows downtime to be as low as 2 hours.
The company has sold 33 such pumps in European
market in the financial year 2009-10. 31 pumps were
exported in the previous year.
15
Environmental Performance
Location wise Consumption in 2009-2010 Metric Tons Material
used by
Type
Unit
Kirloskarvadi Dewas
&
Shirwal Kondhapuri
Steel Metric
Tons
MT)
7027 1296.42 500
Cement Metric
Tons MT
322.5 165.3 0
Copper MT 0.65 296.2 28
Coke MT 1089 0 0
Lime Stone MT 556 0 0
Oils Kiloliters 31 70 27
Paints,
Primers,
Thinners
133.5 69.8 0
Rubber 146 43.3 4
Plastic - 14 28

Total materials used by type
Percentage of materials used that are recycled
input materials
Energy saved due to conservation
More than 30% of input raw material is recycled in the
foundry operations at Kirloskarvadi. 28% of input raw
material is recycled at Dewas foundry operations.
Energy conservation is given very high priority at all
locations in Kirloskar Brothers Limited .
Conservation efforts not only reduce operational costs
but such efforts also help protect the environment, by
reducing pollution due to the power generation
processes.
Energy conservation projects are promoted
throughout the organization and there is internal
Kirloskar Group award instituted to encourage
outstanding work done for conservation of energy.
Some of the major energy saving and conservation
initiatives implemented at various locations of the
company are highlighted below:
4.2
17.7
0.65
1.08
CII National Award for Excellence in Energy
Management
0
0
0
0
0
Reduction in electrical power consumption at
Kirloskarvadi plant
25
20
15
10
5
0
21.8
21.1
2008-09 2009-10
Million kW-hr
1400
1200
1000
800
600
400
200
0
2008-09 2009-10
kW-hr / Rs. Million Sales
16
Location wise Consumption in 2009-2010 Direct Energy
Consumption
by Energy
Source
Kirloskarvadi Dewas Shirwal Kondhapuri
Electricity
Consumption
(kWHr)
14824336 4834976 88836
Coke (Metric Tons)

1089.15 0 0
Diesel HSD
(Kilolitres)

4.3 1188.76 L 21.9
Diesel ( LDO)
(Kilolitres)
5.871 0
Direct and Indirect energy use
Location wise Consumption in 2009-2010 Indirect
Energy
Consumption
by Energy
Source
Kirloskarvadi Dewas Shirwal Kondhapuri
Captive Power
Consumption
(kWHr)
6676 11880 0
Wind Power 6500267 2465672 0

Restructuring the cupola in cast iron foundry to avail
maximum coke to metal ratio
Energy savers for separate lighting and fan
supply feeders in shops
Electronic ballasts and electronic regulators
Energy efficient transformers and motors
BEE star labeled AC's and fans
Retrofitting oil cooled reactors for compressor
motor
HYPN water pumping system
'Polarizer' fuel saving equipment for forklifts,
Rickshaws etc.
Transvector nozzles and guns for compressed air
applications
Electronically controlled pneumatic valves for
compressed air
SMC' digital pressure controller to minimize
pressure band
TFT monitors in place of CRT monitors for
computers
LED street light
Reduction in voltage level for overall factory to
minimize transmission and distribution losses
APFC panels for individual feeders
Increasing setting point for centralized air
conditioners
Restructuring of transformers to keep minimum
transmission loss
VCB's/ACB's in place of GOD for transmission and
distribution of electricity for shutting OFF
transformers in no load condition
Rescheduling of maximum load for 'A' zone
operation
Details of Projects implimented at Dewas:
Kondhapuri:
Initiatives to use renewable energy sources
and increase energy efficiency
Replacement of Old motors with Energy Efficient
motors -12 Nos.
Replacement of Rural 22 KV HT Line with 22 KV
express feeder
Replacement of Desktop CRT Monitors with LCD
Monitors - 26 Nos.
Replacement of 28 Watt Tube lights with 18 Watt
CFL Energy efficient lights at Mezzanine floor office
Improvement of Power factor from 0.99 to 1.00
Details of solar and wind power projects at
Kirloskarvadi :
Planned
Solar Battery Charging system for battery vehicle
Solar office lighting
2.4 MW windmill
Implemented
Solar Pumping system for Cupola water
Solar water heater for housing colony
Bio gas Plant for Bachelor hostel
Biomass gasifier for generation of electricity from
waste wood
Small solar-wind turbine for street lights
The Company has received subsidy from MEDA for
waste heat recovery from cupola project, Biomass
gasifier and small wind-solar turbine for street lights
Purchase of wind power
Installation of 3.5kW solar panel for R&D lab.


0
330066
168
-
-
0
17
Total water use
Water sources significantly affected by water
withdrawal
Total recycling and reuse of water
Location and size of land owned, leased or
managed in bio-diversity rich habitats
Description of the major impacts on
biodiversity
Water recycling is extensively used this includes - Rain
water harvesting. Water is also collected from roofs
and around the manufacturing unit and fed to the bore
wells.
Water Management System
Maintenance of water distribution network
Quality of water
Optimization and leakage surveys
Water re-circulation systems
Closed loop hydro testing of pumps.
Rain water harvesting projects
Met er i ng of al l end user s f or wat er
consumption.
Kirloskar Brothers Limited has no land owned, leased
or managed in bio-diversity rich habitats.
There is no impact on bio-diversity due to the
Some of the major water conservation activities
implemented are listed below:
They comprise the following broad areas:

Intake Management

Sprinkler system/ drip irrigation for lawns and

gardens

company's operations. Therefore this item is not

applicable to our operations.
The Company protects all habitat in its premises.
There is no impact of companys operations on such
sensitive areas.
Based on fuel consumption (Coke, HSD & LPG) data at
each location is considered for Direct GHG
calculation. Ref. Site: Calculation Tools for Corporate
GHG Accounting - GHG Protocol Initiative. htm
belong to World Resources Institute and World
Business Council for Sustainable Development is
being used for the computation of Direct GHG
emission. CII - GBC Electricity Consumption data at
each works is considered for the Indirect GHG
computations. CO2 coefficients have been arrived by
a weighted average emission for generators supplying
to the grid in the state of Maharashtra and Madhya
Pradesh.
Indirect emissions due to outbound logistics and
employee travel (domestic and international) have not
been considered as these were not monitored in the
reporting year.
4 MW windmill farm
Solar Water Heaters
Solar Lighting System
Solar Pumping System
Fuel change over from HSD to LPG
Improvement of Energy Efficiency of equipment
Biogas plant
Optimum transport system
Change over cupola to divided blast cupola
Transparent sheet for factory shop roof
All old equipment working on CFC-12 have been
replaced with units operating on R-22 / R-134a.
Habitats protected or restored
Number of IUCN Red List species and national
conservation list species with habitats in areas
affected by operations, by level of extinction
risk
Greenhouse Gas Emissions
Initiatives to reduce GHG emissions
Use and emission of Ozone Depleting
Substances (ODS)
Location wise Consumption in 2009- 2010
Kirloskarvadi Dewas Shirwal Kondhapuri Corporate
Office Pune
Total Water
Consumption in
meter cube
3
(m )

319781

34584 950 21463 16058
Location wise recycled water in 2009- 2010
Kirloskarvadi Dewas Shirwal Kondhapuri Corporate
Office Pune
Total Water
Consumption in
meter cube

100000

21387.44 0 3525.3*
* Data for Corporate Office in Pune is from July 2009 to
March 2010
3
(m )
0
18
Nox, SO2, and other significant Emissions by
type
Total water discharge by quality and
destination
Total amount of waste by type and destination
The details of emissions are given in table below:
Treated effluents are periodically monitored for
compliance with permissible limits of State Pollution
Control Board (mass/volume). All values are found to
be in compliance.
All waste at manufacturing units is collected properly
and finally disposed off through Ministry Of
Environment and Forests / approved recyclers or
vendor of Maharashtra Pollution Control Board or MP
Pollution Control Board.
Significant spills of chemicals, oils, and fuels in
terms of total number and total volume
All production, transport, import, or export of
any waste deemed hazardous
Impacts of activities and operations on
protected and sensitive areas
Initiatives to mitigate environmental impacts
of products and services
Incidents of and fines for non-compliance with
all applicable international declarations /
conventions / treaties, and national, sub-
national, regional and local regulations
associated with environmental issues
Environmental Impacts of transporting
products and other goods and materials used
for the organisation' s operations and
transporting members of workforce
There were no significant spills of chemicals, oils or
fuels in the reporting period.
No hazardous wastes are being imported or exported.
However, hazardous wastes generated in various
production processes like waste or used oil, non-
ferrous metal i.e. waste copper dross/ plates,
hazardous wastes (lead bearing type), batteries
defined as "hazardous" in Schedule-4 of Hazardous
Wastes (Management & Handling) Amendment Rules
2003 are sold to the MoEF/CPCB Registered Re-
cyclers/ Re-refiners/ Re-processors only.
These are being transported as per the statutory
requirements.
There is no impact of activities / operations on such
sensitive areas.
The Company continuously improves the energy
efficiency of its products. Engine Driven Pumps are
provided with acoustic enclosures / canopies to
reduce the noise levels.
There is strict adherence to the norms applied to
transport products, materials and employees. Vehicle
condition check, Pollution Under Control (PUC)
checks are in place to avoid any significant
environmental impacts during transportation.
There is no incidence of any fine or non-compliance
with respect to any national, regional and local
regulations associated with environmental issues.

Location wise NOx , So2 Emissions in 2009-2010 Emission
Type
Limit



Kondhapuri
Suspended
Particulate
Matter(SPM)
Micrograms/m^3

500

Sulfur Dioxide 120

Nitrogen-all
Oxides
120
Respirable
Particulate
Matter ( RPM)
150

Kirloskarvadi
98
28
31
72
Dewas
170
22
28
Location wise discharge by Water Body Type in 2009-2010 Water Body
Type

Kirloskarvadi Dewas Shirwal Kondhapuri
Total
Suspended
Solids (TSS)


Total Oil and
Grease

Bio-
Chemaical
Oxygen
Demand
(BOD)

Chemical
Oxygen
Demand
(COD)

76
0.8
24.8
180




1369
1.8
3.6
46




16
0
8.6
21.1

96.5
55.6
44.3
- -
146
8
69
211
19
Reduction in Energy consumption in foundries
Metal being poured in a
large mould
Metal being poured in a
large mould
Energy cost trends and targets
800
600
400
200
0
2007-08 2008-09 2009-10
Cast Iron Foundry kWh/ton
800
700
650
600
2007-08 2008-09 2009-10
Heavy Foundry kWh/ton
2007-08 2008-09 2009-10
800
600
400
200
0
Non Ferrous Foundry kWh/ton
2007-08 2008-09 2009-10
730
720
710
700
690
Alloy Cast Steel Foundry kWh/ton
Energy Cost as % to Sales
2007-08 2008-09 2009-10
3
2.5
1.5
2
1
0.5
0
1.8
1.6
1.4
1
1.2
0.8
0.6
0.4
0.2
0
2010-11 2011-12 2012-13 2013-14 2014-15
Energy Cost as % to Sales
20
Contribution of renewable energy
Use of Solar, Wind and Bio-mass energy
40
35
30
25
20
15
10
5
0
Renewable Energy Million kWh
Total Energy Million kWh
2010-11 2011-12 2012-13 2013-14 2014-15
21
Energy Audit of Pumping Systems: Supporting
other organizations in reduction of carbon
foot-print by more than 5500 tons
Kirloskar Brothers Limited offers a unique Energy
Audit Program which helps customers saving of
electricity consumption. Pumping Energy Audit is
conducted by Certified Energy Managers and based
on findings, recommendations for suitable pumps,
motors and improvement in the pumping layout are
given to the customers.
There are about 20 organizations where these
energy audits were conducted during last one year.
Some organizations have already implemented the
22
recommendations and are benefitted up to 30%
energy savings. This has helped save 11 million
kWhr electricity and more than Rs. 40 million in
energy bill. Many more organizations are convinced
about the audit outcome and are in the process of
implementation of audit recommendations. These
customers are from various types of industries like
Automotive, Manufacturing, Chemical, Process,
Water Supply / Lift Irrigation Schemes, etc.
The payback period of the investments made for
these improvements have been in the range of 2
months to 2 years depending upon type of industry,
type of pumps, pump working hours, etc.
Total Workforce by region
The workforce in various business sectors, corporate
functions and manufacturing plants are given in table
below:
Social Performance
23
Corporate Functions 164 14
Building & Constructions 13
Customer Sevice & Spare 37 6
Defence & Marine 10
Distribution 76
Industry 39 1
Irrigation 106 1
Oil & Gas 16
Power 102
Water Resource Management 76 6
Sector Shared Services 64 19
Kirloskarvadi Operations 341 534 348
Dewas Operations 127 512
Kondhapuri Operations 38 30 1
Shirwal Operations 9 25
Grand Total 1218 1148 349
Workforce numbers*
Functional Area
Staff Workmen Temporary
st
* as on 31 March 2010
Total rate of employee turnover
Benefits provided to full-time employees that
are not provided to temporary or part-time
employees
Annual Attrition Percentage for staff category
employees was 12.6%
Senior Management ; 14.3%
Middle Management: 10.4%
Junior Management: 13.3%
Employee Benefits
(i) Gratuity
The Company has an obligation towards gratuity, a
defined benefit retirement plan covering eligible
employees. The plan provides for a lump sum payment
to vested employees at retirement, death while in
employment or on termination of employment of an
amount equivalent to 15 days salary payable for each
completed year of service. Vesting occurs upon
completion of five years of service.
The Company makes annual contributions to gratuity
fund established as trust. The Company accounts for
the liability for gratuity benefits payable in future based
on an independent actuarial valuation.
(ii) Superannuation Fund
(iii) Provident Fund
Eligible employees of the Company are entitled to
receive benefits under the Provident Fund, a defined
contribution plan, in which both employees and the
Company make monthly contributions at a specified
percentage of the covered employees' salary (currently
12% of employees' basic salary). The contributions as
specified under the law are paid to the Provident Fund
and Pension Fund set up as irrevocable trust by the
Company or to the respective Regional Provident Fund
Commissioner and the Central Provident Fund under
the State Pension scheme. The Company is generally
liable for annual contributions and any shortfall in the
fund assets based on the government specified
minimum rates of return or pension and recognises
such contributions and shortfall, if any, as an expense
in the year incurred.
(iv) Leave Encashment:
The Company provides for the encashment of leave
subject to certain rules. Employees are entitled to
accumulate leave, subject to certain limits, for future
encashment. This accumulated leave can be encashed
at the time of superannuation.
Some other benefits advanced to the permanent
employees are:
Allowances like Conveyance Allowance, Education
Allowance and Leave Travel Assistance.
Kirloskar Brothers Limited has internal unions at its
manufacturing units at Kirloskarvadi, Dewas,
Kondhapuri and Shirwal. These unions form
representative bodies of the workmen and negotiate
with the management and settlements signed with
these unions respectively cover all permanent
workmen present.
Percentage of employees covered by collective
bargaining agreement
Mi ni mum not i ce peri od(s) regardi ng
operational changes, including whether it is
specified in collective agreements
For Notice period regarding operational we follow the
procedures mentioned in the Industrial Disputes Act
(21 days). This Act was passed by the Central
Government of India to make provisions for
investigation and settlement of industrial disputes and
came into existence in April 1947.
Kirloskar Brothers Limited has a Safety Health and
Environment (SHE) policy, which encompasses all
regulatory norms along with International Labour
Organisation recommendations. A process is
established for recording, reporting, analysing and
taking action on accidents and unsafe conditions.
There bipartite committees include Safety Committee,
Works Committee, Canteen Committee and Joint
Development Councils. These committees thus cover
100% of the workforce.
Kirloskar Brothers Limited provides curative and
preventive health services to the employees, their
families as well as the community at large. It views its
initiatives as a part of its social responsibility and as an
investment in improving social capital. Of these
initiatives, some have been highlighted in the care of
employees and their dependent family members.
Kirloskar Brothers Limited is also committed to take
initiatives to combat the spread of HIV/AIDS. It
undertakes extensive training programs to bring
awareness about such serious diseases as also issues
related to maternal health and child health.
Safety has been a concern for Kirloskar Brothers
Limited and the Company is taking steps to reduce the
injuries and accidents. All the manufacturing units are
certified under Occupational Health and Safety
Standards OHSAS 18001.
OHSAS 18001 is an Occupation Health and Safety
Assessment Series for health and safety management
systems. It is intended to help an organization to
control occupational health and safety risks.
Formal Joint Management-Worker Health and
Safety Committees
Risk-control programmes in place to assist w
orkforce members, their families or community
members regarding serious diseases
Health and Safety topics covered
24
their supervisor. Formal evaluation ratings are
assigned at the end of the year. PMS instills a high
performance culture in the organisation.
The details of location-wise gender diversity is given in
following table:
Kirloskar Brothers Limited has followed a
nondiscrimination policy in employment and
compensation. Remuneration is not based on gender,
social,status or age and is linked to responsibility levels
and performance.
All employees have the opportunity to advance their
careers. During the performance review a potential
review and career progression plan is also discussed
with each employee. All employees have the
opportunity of moving to higher levels. The vacancies
are internally advertised and based on merit
employees can be selected for the higher level
positions internally.
Gender Diversity by Employee category
Ratio of basic salary of men to women by
employee category
Location Male Female Male Female
( Staff) ( Staff) ( Workmen) ( Workmen)
Kirloskarvadi 333 4 525 0
Dewas 124 3 511 3
Kondhapuri 35 0 30 0
Shirwal 9 0 25 0
Corporate and 642 45 43 1
Regional Offices
TOTAL 1143 52 1134 4
Average hours of training per year per
employee by employee category
Skill Management and Managing Career
Endings
Employees receiving regular performance and
career development reviews
Average Training hours per employee per year for
2009-10 are as given below:
Kirloskar Brothers Limited focuses on continual
upgradation of competencies and skills of its
employees. Staff category employees are given
training on technical aspects as also managerial
competencies and behavioral competencies.
Workmen are given training to develop multi-skilling
and productivity improvement techniques like MOST[
Maynard Operations Sequence Technique]
All employees are evaluated based on performance
and merit. The Company has implemented
performance management system which requires
target setting and review process on quarterly basis.
In the performance management system, Individual
performance plans are cascaded from the Annual
Operating Plans of the respective department.
The targets address the 4 perspectives of the Balance
Score Card bringing business and customer focus to
all levels. Employees have an opportunity to develop
their own view of their performance and discuss it with
25
Senior Management 64.5 hours
Middle Management 36.0 hours
Junior Management 28.5 hours
Workment 9.0 Hours
st
as on 31 March 2010
Human Rights Screening for Suppliers and
Contractors
Employee training on Policy and Procedures
concerning Human Rights
Incidents of Discrimination:
Support to Freedom of Association and
Collective Bargaining:
Kirloskar Brothers Limited has Supplier and Dealer
assessment process to take care of issues related to
social aspects before inducting them in organisation.
All legal and regulatory requirements need to be
fulfilled before final selection. The company
periodically audits job contractors for adherence to
labour laws and other statutory requirement like
minimum wages, PF, payment of gratuity etc. thereby
ensuring prevention of violation of Human Rights and
employment malpractices.
In addition to Code of Coduct which covers the aspect
of non-discrimination, the company has implemented
a Whistle Blower policy. The policy explicitly mentions
pre-requisites to ensure that the identity of the whistle
blower is kept confidential.
No incidents have been reported under this policy for
the year 2009-10.
Booklet on Code of Ethics and Code of Conduct is
given to each staff category employee present as also
to every new employee.
In keeping with the spirit of the Constitution of India
wherein Right of Association is a Fundamental Right,
Kirloskar Brothers Limited respects the rights of
association of its employees and has a constructive
relationship with trade unions at all locations.
Employees are free to join Trade Unions, as it believes
that most individual and collective grievances can be
resolved through bipartite forums.
Approximately 1148 employees of the permanent
category, who come under the unionised category, are
covered by collective bargaining agreements. These
agreements include health and safety provisions along
with compensation structures in the form of a
Memorandum of Understanding (MoU) between the
Human Rights
26
management and the recognised Union as per the
provisions of the applicable labour legislations. These
MoUs are signed every three years, after negotiations
between representive committees of the union and the
Management. While the union membership may vary
from each location, all eligible employees, irrespective
of his membership, enjoy the benefits as agreed in the
MoU.
Kirloskar Brothers Limited upholds the law of not
employing children in any of its factories. It is bound
by statutory legislation (Factories Act, 1948) and
proper records are maintained in this regard.
Operations identified as having significant risk
for incidents of child labour, and measures
taken to contribute to the elimination of child
labour
Contribution to Elimination of Forced and
Compulsory Labour
Total number of incidents of violations
involving rights of indigenous people
andactions taken [ Rights of Indigenous People]
Kirloskar Brothers Limited strictly adheres to the laws
of the land with regard to forced and compulsory
labour, which are prohibited under various acts and
statutes.
Kirloskar Brothers Limited has not violated rights of
indigenous people as none of its operations have
impacted directly or indirectly any indigenous people.
Therefore this item is not applicable for reporting.
27
The Company has a Corporate Social Responsibility
(CSR) Cell which includes members of the top
management.
The Company conducts society perception surveys to
assess social as well as environmental impact of its
products and operations. The Company has been
able to proactively contribute to preservation and
protection of the environment and has also
contributed to integrated social development.
Through its CSR activities, the Company aims to
upgrade the quality of life of the communities around
the Company's areas of operations. In a structured
approach, the Company's CSR Committee guides and
reviews the CSR activities. In all its CSR initiatives, the
Company recognises and respects diverse community
needs by undertaking specific and need-based
initiatives across locations.
All staff category empolyees have been trained in
organi zati ons anti -corrupti on pol i ci es and
procedures through Code of Ethics.
There are no incidents of corruption reported during
the year 2009-10.
There are no financial or non-monetary grants made
to any political party during the reporting year.
Nature, scope, and effectiveness of any
programmes and practices that assess and
manage the impacts of operations on
communities, including entering, operating,
and exiting
Percent age of empl oyees t rai ned i n
organisation's anti-corruption policies and
procedures
Actions taken in response to incidents of
corruption
Total value of financial and in-kind
contributions to political parties, politicians,
and related institutions by country
Tot al number of l egal act i ons f or
anticompetitive behaviour, anti-trust, and
monopoly practices and their outcomes:
ociety S
28
Street plays on social issues
Lessons on energy conservation for school
children
No such legal actions have been filed against the
company. No misleading statements have been made
about our competitor's products and services.
Any information regarding competitors is collected
only through legally permitted sources. The Company
does not engage in activities which generate or
support the formation of monopolies, dominant
market positions, cartels and similar unfair trade
practices.
There are no fines/sanctions for non-compliance with
laws and regulations.
Fines/sanctions for non-compliance with laws
and regulations
29
Case Study
The children at schools around Kirloskarvadi belong
to the rural area where the parents are generally
farmers. The family atmosphere does not provide the
necessary inputs and opportunities for the children to
develop themselves to be at par with the children of
cities. This need was identified during the interaction
with teachers of the schools and during the society
perception survey. In order to respond to this issue,
an innovative program of personality development
for these students was developed by Kirloskar
Brothers Limited.
This program was conducted at 10 schools and it
th th
covered 780 students of 10 and 12 standard.
The training module covered lectures on topics like
communication skills, teamwork, guidance on
adolescent issues of students, healthy diet, hygiene,
and career development.
Case Study
The schools need infrastructural support for making
clean drinking water available to students.
School students have facility of drinking water but it
was not safe & evidence of many water borne
disaeases .The need identified during Adarsh shala
evaluation . Now it is observed that there is reduction
in water borne diseases.
15 schools were provided with the aqua guard
water purifiers. This has benefitted by 7500
children studying in these schools.
Case Study
Schools in the rural area always face difficulty in
getting the equipment and facilities like musical
instruments and computers. This need was
identified during the evaluation of schools
under Adarsh Shala competition . In response
to this need the company has provided sets of
Musical Instruments to 3 schools.
This will help 1130 school children
opportunity to learn music.
24 schools were provided the computers
which will benefit 22000 school children.
Case Study
While there are continuous efforts to reduce the
direct impact on GHG emission, the company also
believes that plantation of trees also has a positive
impact on reducing carbon. About 980 plants were
planted around Kirloskarvadi.
The improvements in cupola furnace by way of
increased pre-heat zone has resulted in 20%
reduction of coke cosnusption. Similarly use of LPG
replacing diesel for mold baking has resulted in
26% reduction of GHG emission last year.
30
700
600
500
400
300
200
100
0
2008-09 2009-10
618.12
461.59
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2008-09 2009-10
GHG Ton
4035
3265
Case Study :
Stakeholder Engagement on
Energy Saving Pledge.
The other initiatives included exhibition of energy
saving devices.
Energy conservation week is celebrated during 21-
26 December 2009. There were many activities that
were conducted as part of this week. [ list?] Local
newspapers reports widely cover this event.
Energy Saving Pledge.
Energy Conservation
The message of energy conservation is propogated
across many stakeholders of the company and
included Employees, Vendors, Banks, Schools,
Village Panchayats
All the stakeholders have shown their commitment
to conserve energy. They demonstrated this
through taking the

31
Case Study :
Cleaning the River Ramnadi
Ramnadi river is located in Baner area in Pune. It is
very close to the Yamuna corporate office of our
company. Our employees as part of the Eco-group
have joined hands with local NGO Vasundhara
Swachata Abhiyan and have actively participated in
cleaning of the river. They have also interacted with
local people to encourage their involvement in
cleaning the river. Additionally tree plantation has
been done along the bank of Ramnadi. About 100
trees were planted in cooperation with this NGO.
The group is now planning to take up Waste
Management - Expl ai ni ng i mportance of
segregating solid and wet waste to the local people.
They are motivating people to segregate the waste
and ensure appropriate disposal so that it does not
have adverse impact on environment.
6 employee volunteers contributed about 100
hours for the above initiative in the last one year.
Life cycle stages in which health and safety
impacts of products and services are assessed
Total number of incidents of non-compliance
with regulations and voluntary codes
concerning health and safety impacts of
products and services during their life cycle, by
type of outcomes
Total number of incidents of non-compliance
with regulations and voluntary codes
concerning product and service information
and labelling, by type of outcomes
Practices related to customer satisfaction,
including results of surveys measuring
customer satisfaction
Programmes for adherence to laws, standards,
and voluntary codes related to marketing
communications, including advertising,
promotion, and sponsorship
Kirloskar Brothers Limited puts high priority on safe
working environment. The Company meets all safety
regulations of concerned markets and goes beyond
the safety regulations to provide safer products .
There has been a continuous up-gradation in product
safety with new technologies being brought in.
The Company has never received any sanctions for
violation of regulatory norms.
There were no such incidents of non-compliance with
regulations and voluntary codes concerning product
and service information and labelling.
Customer feedback is collected through customer
meets, day-to-day interactions and formal surveys.
Each business sector prepares action plans to improve
the customer satisfaction on continual basis.
adheres to all norms, standards and voluntary
codes related to marketing communications, including
advertising, promotion, and sponsorship. No false
claims and /or unfair means are used while promoting
a product or a service. The company also adheres to
sustainability norms for the marketing tools such as
avoiding neon signs, use of art paper calendar and
KBL
Product Responsibility
32
promotion material etc. Gift articles are also made of
eco-friendly materials.
There was an incidence of violation of Weights and
Measures Act in respect of a product where sticker on
one box was not available. The company has paid
compounding fee to the Government authorities.
Total number of incidents of non-compliance
with regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship by type of outcomes
Total number of substantiated complaints
regarding breaches of customer privacy and
losses of customer data
Monetary value of significant fines for non-
compliance with laws and regulations
concerning the provision and use of products
and services
No such complaints have been made. The Company
respects customer privacy.
There were no fines for non-compliance with laws and
regulations concerning the provision and use of
products and services.
33
Disclosure on
Management Approach
(DMA):
Economic Indicators
The company's vision indicates its management
approach towards growth in terms of economic
indicators. The companys leaders engage in
developing annual operating plans as well as long
range plans for profitable growth. The company has
established a risk management committee to identify
risks and take proactive steps to mitigate them. The
company considers that its business has direct as well
as indirect economic benefits to the nation with the
infrastructure projects completed in the area of water ,
irrigation and power. The company conducts analysis
of competitors and their technology to develop a
strategy for technology development and introduce
new products to maintain a competitive edge.
Environmental Indicators:
The company's plants have been certified for the
Environment management System for ISO 14000. It
has also signed the CII code on Ecologically
Sustainable Business Growth. The company
encourages the philosophy of Reduce, Reuse and
Recycle in all its operations. Therefore monitoring of
energy, water and other greenhouse gas emissions
and their control is of prime importance. The company
advocates strict adherence to pollution control norms
and ensures related statutory compliances.
Labor Practices and Decent Work Indicators
The company considers its employees as its most
important asset. It believes that employees have the
right of collective bargaining and encourages a
healthy relationship with its unions. For managerial
employees, it strives to develop leadership as also
technical and behavioral competencies to enhance
their performance and provide them opportunity to
grow. The company does not believe in discrimination
of any kind while employing people.
The Company tracks its performance related to safety
and health of all its employees and continually
develops plans to improve them. The 4 manufacturing
plants are certified for Occupational Health and Safety
standards OHSAS 18000. Performance related to
health and safety is monitored in review meetings by
plant heads and regular audits ensure compliance to
the requirements of the standard.
Human Rights Indicators
The company respects and follows all statutory
requirements including strict prohibition of child
labour and compulsory labour or forced labour.
Society Indicators
The company has adopted a Code of Conduct and a
Code of Ethics. All employees are trained in these
codes which covers the anti-corruption policy of the
company and policy on taking or giving gifts. The
company is neutral to all political parties and does not
give any donations to specific parties. The company
has decided to work for the community in the vicinity of
its operations in the area of health and education. This
is in line with the millennium development goals of the
United Nations. It undertakes programs for health
check-ups, training on awareness of serious diseases,
health care of expecting mothers and children.
Product Responsibility Indicators
Company endeavors to develop products that have
minimal impact on the safety , health and environment
all through its supply chain. Kirloskar Brothers Limited
is proud to have developed lowest life cycle cost
pumps. The Research and Development department
continuously develops products that are safer, more
reliable and more energy efficient.
The company follows all laws relating to marketing
communication, advertising, promotions and
sponsorships.
34
Statement from Chairman & 1
Managing Director
Description of Key Issues, Risks 2
and Opportunities
2.1 Name of the Organization 3
2.2 Primary Brands, Products and 3
Services
2.3 Operational Structure 4
2.4 Location of Headquarter 4
2.5 Countries with Major Operations 4
2.6 Nature of Ownership and Legal 4
Form
2.7 Markets Served 4
2.8 Scale of the Organization 4
2.9 Significant changes in size and 4
structure or ownership
2.10 Awards received 4
3.1 Reporting Period 5
3.2 Recent previous report 5
3.3 Reporting Cycle 5
3.4 Contact Persons 5
3.5 Report Content 5
3.6 Boundary of the Report 6
3.7 Limitations of the Report 6
3.8 Basis for reporting on subsidiaries 6
and associate companies
3.9 Data Measurement Techniques 6
3.10 Restatements 6
3.11 Significant Changes from previous 6
reporting period
3.12 GRI Content Index 35
6
4.1 Governance Structure and Board 7
Composition
4.2 7
4.3 Independent and /or non-executive
members
4.4 Mechanisms for shareholders and 8
employees to provide recommendations
to the highest governance body
1.1
1.2
3.13 Policies and current practices for
seeking external assurance
Non Executive status of the chair
GRI Content Index
Aspect

Page
No.

Indicator
1. Profile
2. Organizational Profile
3. Report Parameters
4. Governance, Commitments and Engagement
Aspect

Page
No.
Indicator

4.5 Linkage between compensation 9
and performance of the board body
4.6 Process to avoid conflict of interest 9
4.7 Process to determine expertise of 9
Board members
4.8 Statements and application of 9
Mission, Vision, Values and Code
of Conduct
4.10 Evaluating the performance of 10
highest governing body
Approach to risk management in 10
operational planning
4.12 Charters, initiatives and principles 10
that organization subscribes to
4.13 Membership in associations and 10
national / international
organizations
4.14 Stakeholder engagement 10
4.15 Identification and selection of 11
stakeholders
4.16 Approach to stakeholder 11
Engagement
34
EC1 Economic Performance 12
EC2 Financial implications and other 13
risks and opportunities for the
organizations activities due to
climate change
EC3 Coverage of the organizations
defined benefit plan obligations
EC4 Significant Financial Assistance 13
Received from the Government
EC5 Range of ratios of standard entry 13
level wage compared to local
minimum wage at significant
locations of operation
EC6 Policy, practices and proportion of
spending on locally based suppliers
EC7 Procedure for local hiring 13
EC8 Development and impact of 14
infrastructure investments and
services provided primarily for
public benefit through commercial,
in kind, or pro bono engagement
EC9
4.9 Overseeing Risks and Opportunities 10
by governance bodies

4.11


Indirect Economic Impacts 14
Disclosure on Management Approaches
5. Economic Performance Indicators
35
*
*
GRI indicators are not reported
*
Aspect

Page
No.

Indicator
EN1 Materials Used 16
EN2 Recycled Input Materials 16
EN3 Direct Energy Consumption 17
EN4 Indirect Energy Consumption 17
EN5 Energy Saved 16,17
EN6 Initiatives to provide energy 17
efficient products
EN7 Initiatives to reduce indirect energy 17
consumption
EN8 Total Water Use 18
EN9 Water sources significantly affected 18
EN10 Total recycling and reuse of water 18
EN11 Location and size of land owned, 18
leased or managed in biodiversity
rich habitats
EN12 Impact of activities, products and 18
services on biodiversity
EN13 Habitats protected or restored 18
EN14 Strategies, current actions and
plans for managing impact on
biodiversity
EN15 Number of IUCN species and 18
national conservation list species
with habitats in areas affected by
operations
EN16 Total direct greenhouse gas
emissions
EN17 Total indirect greenhouse gas
emissions
EN18 Initiatives to reduce greenhouse 18
gas emissions
EN19 Emissions of ozone depleting 18
substances
EN20 NOx and SOx and other significant 19
emissions
EN21 Total Water Discharge 19
EN22 Total waste by type and disposal
method
EN23 Total number and volume of 19
significant spills
EN24 Weight of waste deemed
hazardous
EN25 Identity, size, protected status, and 19
biodiversity value of water bodies
and related habitats
significantly affected by the

6. Environmental performance Indicators
Aspect

Page
No.
Indicator

reporting organizations discharges
of water and runoff.
EN26 Initiatives to mitigate the 19
environmental impact of products
and services
EN27 Packaging materials that are
reclaimed
EN28 Fines and sanctions for non- 19
compliance of environmental laws
EN29 Environmental impact of 19
transporting organizations
products
EN30 Environmental protection
expenditure and investments
LA1 Total workforce 23
LA2 Total rate of employee turnover 23
LA3 Benefits to full-time employees not 23
provided to temporary or part-time
employees,
LA4 Percentage of employees covered 24
by collective bargaining agreement
LA5 Minimum notice period(s) regarding 24
operational changes, including
whether it is specified in collective
bargaining agreements
LA6 Workforce represented in joint 24
management-worker health and
safety committees
LA7 Rates of injuries and work related
fatalities
LA8 Education, training and risk control 25
programs to assist workforce, their
families and community members
regarding serious diseases
LA9 Health and safety topics covered in 25
formal agreements with trade
unions
LA10 Average hours of training per year 25
per employee by employee
category
LA11 Programs for skill management and 25
managing career endings
LA12 Employees receiving regular 25
performance and career
development reviews
LA13 Breakdown of employees by 25
category and gender

36
*
*
*
*
*
*
*
7. Social Performance Indicators
Aspect

Page
No.

Indicator Aspect

Page
No.
Indicator

and total number of non-monetary
sanctions for non-compliance with
laws and regulations
PR1 Life cycle stages in which health 32
and safety impacts of products
and services are assessed for
improvement, and percentage of
significant products and services
categories subject to such
procedures
PR2 Total number of incidents of non- 32
compliance with regulations
concerning health and safety
impacts of products and services
PR3 Product and service labeling
PR4 Total number of incidents of non- 32
compliance with regulations and
voluntary codes concerning product
and service information and labeling,
by type of outcomes
PR5 Practices related to customer 32
satisfaction, including results of
surveys measuring customer
satisfaction
PR6 Adherence to Regulations 32
regarding Marketing
communications
PR7 Total number of incidents of non- 33
compliance with regulations and
marketing voluntary codes
concerning communications,
including advertising, promotion,
and sponsorship by type of
outcomes
PR8 Total number of substantiated 33
complaints regarding breaches of
customer privacy and losses of
customer data
PR9 Monetary value of significant fines 33
for non-compliance with laws and
regulations concerning the
provision and use of products
And services


LA14 Ratio of basic salary of men to 25
women by employee category
HR1 Percentage and total number of
significant investment agreements
that include human rights clauses
or that have undergone human
rights screening
HR2 Human rights screening for 26
suppliers and contractors
HR3 Employee training on policies and 26
procedures regarding aspects of
human rights
HR4 Total number of incidents of 26
discrimination
HR5 Managing risk to freedom of
association
HR6 Efforts to eliminate child labour 27
HR7 Efforts to eliminate forced and
compulsory labour
HR8 Percentage of security personnel
trained in the organizations policies or
procedures concerning aspects of
human rights that are relevant to
operations
HR9 Incidents of violations concerning 28
rights of indigenous people
SO1 Programs and practices to assess 28
and manage impacts on
communities
SO2 Business units Analyzed for risks
related to corruption
SO3 Employees trained in organizations 28
anti-corruption policies and
Procedures
SO4 Actions taken in response to 28
incidents of corruption
SO5 Public policy positions and
participation in public policy
development and lobbying
SO6 Total value of financial and in-kind 28
contributions to political parties,
politicians, and related institutions
by country
SO7 Total number of legal actions for 28
anti-competitive behavior, anti-trust,
and monopoly practices and their
outcomes
SO8 Monetary value of significant fines 29
Society
Product Responsibility
37
*
*
*
*
*
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GRI Application Level
G3 Profile
Disclosures
G3 Management
Approach
Disclosures
G3 Performance
Indicators & Sectors
Supplement
Performance
Indicators
Reported on:
1.1
2.1-2.10
3.1-3.8,3.10-3.12
4.1-4.4,4.14-4.15
Reported on all Criteria listed
for level C plus:
1.2
3.9,3.13
4.5-4.13,4.16-4.17
Same as requirement
Level B
Management
Approach disclosed
for each
Indicator
Category
Management
Approach disclosed
for each
Indicator Category
Report on a minimum of 20
Performance Indicators, at least
one from each of;
Economic,Environmental,
Human Rights, Labor,
Society,Product
Responsibility
Report on each core G3 and
supplement* Indicator with
due regard to Materiality
principle by either:a)
Reporting on the indicator,
or
b)Explaining the
reason for its omission.
Not Required
Report on a minimum of 10
performance Indicators,
including at least one from
each of ;Economics; Social
and Environmental
Report Application level C C+ B B+ A A+
Kirloskar Brothers Limited is at Level B as per above application level requirement of GRI - G3
38
FEEDBACK FORM FOR SUSTAINABILITY REPORT 2009-10
This is the first Sustainability Report published by Kirloskar Brothers Limited. We welcome your suggestions to improve
our performance and reporting in the future reports. Please spare few minutes of your valuable time and give us your
feedback.
1. Relevance of Economic, Environment & Social issues covered in the report
High Medium Low
2. Clarity of information provided on above issues in the report
High Medium Low
3. Quality of Design, Layout and Presentation of the report

Excellent Very Good Good
4. Suggest any other issue should be covered in the next sustainability report
Name :

Designation :
Organization :
Contact Address :
E-mail :
Please mail your feedback to:
N.M .Ingle
Business Excellence
Kirloskar Brothers Limited
Yamuna, Survey No. 98(3-7)
Baner, Pune ( INDIA) 411045
nishikant.ingle@kbl.co.in
CII - Code for Ecologically Sustainable business growth
Being cognizant of the need of sustainable growth and dwindling stock of natural capital, we
commit ourselves to the attainment of the following Ten - Natural Capital Commandments.
1) Reduce specific consumption of water and energy by 2 - 6% *every year over next ten
years.
2) Reduce specific generation of waste and reduce the quantum of waste going to land
fills by 2- 6% every year over next ten years
3) Increase use of renewables including renewable energy by 2- 10 %* every year in place
of non-renewables over next ten years
4) Reduce emission of green house gas emissions and other process emissions by 2 - 6%
*every year over next ten years and explore opportunities through Clean Development
Mechanism (CDM) and other Carbon Exchange Programs
5) Increase use of recyclables and enhance recyclability of resources embedded in the
product by 2 10 % *every year over next ten years
6) Increase the share of harvested rain water in overall annual use of water by 2 10 % *
every year over next ten years
7) Incorporate life cycle assessment criteria for evaluating new and alternative
technologies & products
8) Strive to adopt green purchase policy and incorporate latest clean technologies
9) Take lead in promoting and managing product stewardship program, by forging
partnerships with businesses and communities
10) Reduce depletion of natural capital which is directly attributable to companys
activities, products and services by 2 10 % *every year over next ten years.
We also commit to demonstrate attainment of these commandments in our pursuit to
certifications such as ISO 9001, ISO 14001, OHSAS 18001, SA 8000, Green Buildings, Eco
Labels and the like.
Date : 19 Feb 2009
Sanjay C Kirloskar
Chairman and Managing Director
Kirloskar Brothers Limited
* The figures suggested for reduction are indicative only. The individual member units are free to choose
any targets, subject to a minimum of 2% per annum. This target annual reduction could be based on
their present levels of operating efficiency, technology adoption and management priorities.
Confederation of Indian Industry
Mission on Sustainable Growth
Sustainability
S u s t a i n a b i l i t y
R e p o r t
2 0 0 9 - 1 0
KIRLOSKAR BROTHERS LIMITED
S
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Sustainability
KIRLOSKAR BROTHERS LIMITED
Yamuna, Survey No. 98 (3-7) Baner, Pune ( INDIA) 411045