Harsha Engineers International Limited filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, with the stock exchanges. The report outlines the company's commitment to Environmental, Social, and Governance (ESG) principles, detailing its performance against the National Guidelines on Responsible Business Conduct (NGRBC). The company has set a target to achieve net zero by 2050 and Scope 2 neutrality by 2030, with renewable energy already contributing over 50% to its total consumption.

Governance and Oversight

The Board of Directors oversees the implementation of the Business Responsibility policy. The company has constituted an Enterprise Risk Management Steering Committee and an Environmental, Social and Governance (ESG) Steering Committee to support decision-making on sustainability-related matters. The BRSR report has undergone limited assurance by Growlity Inc. The company confirmed that all nine NGRBC principles are covered by its existing policies, including the Code of Conduct, Whistle Blower Policy, and Anti-Bribery controls.

Environmental Performance

Total energy consumption for FY 2025-26 stood at 277,381.53 GJ, with renewable sources contributing 77,379.36 GJ. The company reported a total Scope 1 emission of 5,160 metric tonnes of CO2 equivalent and Scope 2 emission of 8,276 metric tonnes of CO2 equivalent. Water consumption was recorded at 49,026 kL, with the company maintaining a Zero Liquid Discharge mechanism by reusing treated water within its premises. The total waste generated was 1,143.89 metric tonnes, of which 955.08 metric tonnes were recycled.

Social and Safety Metrics

The company reported zero lost-time injuries, zero recordable work-related injuries, and zero fatalities for its employees and workers during the year. The attrition rate among permanent employees declined to 6.40% in FY 2025-26 from 14.32% in the previous year. The workforce comprised 683 employees and 2,601 workers, with women representing 3.51% of the total employees and 4.81% of the total workers. The company spent 0.089% of its total revenue on well-being measures for employees and workers.

Stakeholder Engagement and CSR

Harsha Engineers identified key stakeholder groups including employees, shareholders, investors, suppliers, customers, and communities. The company received 48 customer complaints during the year, with 3 pending resolution at the close of the year. Under its Corporate Social Responsibility (CSR) initiatives, the company spent ₹199.93 lakhs, benefiting 1,172 lives through projects focused on education, welfare, and skill development.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0JUS01029/a5c52757-0920-4abc-a2c8-3a5d76c916ef.pdf

Harsha Engineers International Limited has recommended a dividend of ₹1.5 per equity share for the financial year ended March 31, 2026. The company announced that dividend income is taxable in the hands of shareholders, and tax will be deducted at source (TDS) at the time of payment. The applicable tax rate depends on the shareholder's residential status and the validity of their Permanent Account Number (PAN).

Tax Deduction Rates for Residents

For resident shareholders, the standard TDS rate is 10% on the dividend amount. However, no tax will be deducted if the aggregate dividend paid during the tax year does not exceed ₹10,000. Individuals can also avoid TDS by submitting Form 121. Specific categories such as insurance companies, mutual funds, and Alternative Investment Funds (AIF) established in India can claim nil or lower deduction by providing self-declarations and documentary evidence.

If a shareholder's PAN is unavailable, invalid, or inoperative—often due to a lack of linkage with Aadhaar—the company is required to deduct tax at a higher rate of 20%.

Guidelines for Non-Resident Shareholders

Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, are subject to a TDS rate of 20% plus applicable surcharge and cess. These shareholders may opt for beneficial rates under the Double Taxation Avoidance Agreement (DTAA) if applicable. To claim these benefits, they must submit a valid Tax Residency Certificate (TRC), Form 41, and a self-declaration confirming their tax residency and beneficial ownership status.

Submission Deadline and Compliance

The company has set a deadline of Saturday, June 20, 2026, for shareholders to submit all necessary documents, including Form 121, Form 41, and TRCs. Documents can be uploaded via a specific link provided by the company. Any communication received after this date will not be considered, and TDS will be deducted at the applicable standard rate. Shareholders are advised to update their PAN, email, and bank details with their depositories or the company to ensure compliance and correct tax deduction.