Stovec Industries Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended 31st December, 2025, to BSE Limited in accordance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The comprehensive report demonstrates the company's commitment to responsible business practices and sustainability initiatives across multiple operational areas.

Financial Performance and Corporate Structure

The company reported strong financial metrics for FY2025, with key parameters reflecting its operational scale and market position.

The company operates as a manufacturer of rotary and digital printing machines, engravers, perforated nickel screens for textile and graphic industry, and other textile and graphic consumables and spare parts. Its business activities are concentrated in two main segments: Textile Consumables and Graphics Products (83.30% of turnover) and Textile Machineries (16.70% of turnover).

Workforce Composition and Employee Welfare

Stovec Industries maintains a substantial workforce with comprehensive welfare programs covering all categories of employees and workers.

The company provides comprehensive benefits including 100% health insurance coverage, accident insurance, and day care facilities for all permanent employees and workers. Retirement benefits including Provident Fund and Gratuity cover 100% of the workforce, with all statutory deductions properly deposited with authorities.

Environmental Compliance and Sustainability Initiatives

The company has implemented robust environmental management systems with focus on energy efficiency and waste management.

Energy Consumption and Environmental Impact

The company achieved 100% waste recycling with no waste sent to landfills or incineration. All hazardous and non-hazardous waste is disposed through Gujarat Pollution Control Board authorized recyclers with proper documentation compliance.

Health and Safety Performance

Stovec Industries maintains comprehensive health and safety management systems covering all operational areas. The company reported a Lost Time Injury Frequency Rate (LTIFR) of 3.82 per million person-hours for workers in FY2025, compared to 3.69 in FY2024. No fatalities or high-consequence work-related injuries were reported during the year.

The company provides regular health checkups every two years for all employees, with annual checkups for employees over 50 years. A group Mediclaim policy covers all employees and workers, demonstrating the company's commitment to workforce well-being.

Governance and Compliance Framework

The company has established comprehensive policies covering eight of the nine National Guidelines on Responsible Business Conduct principles, with Board approval for implemented policies. Mr. Shailesh Wani, Managing Director, oversees the implementation and oversight of Business Responsibility policies.

The company maintains active memberships in three trade associations: Textile Machinery Manufacturers Association (National level), Gujarat Chamber of Commerce & Industry (State level), and Ahmedabad Management Association (State level).

Material Sustainability Issues and Risk Management

Stovec Industries has identified six key material issues affecting its business operations, including employee well-being, renewable energy adoption, supply chain resilience, and continuous employee development. The company views these as both risks and opportunities, with specific mitigation strategies and financial implications assessed for each area.

The report demonstrates the company's systematic approach to ESG compliance and sustainable business practices, with quantifiable metrics across environmental, social, and governance parameters. All policies and procedures extend to value chain partners, ensuring comprehensive sustainability coverage across business operations.

Stovec Industries Limited has informed the stock exchange about receiving a significant income tax demand notice worth ₹4.02 crore from the Income Tax Department. The notice, received on 27th February 2026, pertains to the assessment year 2020-21 and relates to alleged tax deduction at source (TDS) non-compliance.

Tax Demand Details

The Income Tax Department has raised observations regarding the company's obligation to deduct tax at source under section 195 of the Income Tax Act, 1961. The demand specifically relates to remittances made in respect of "Acquisition of Service and Spares parts Business."

Financial Implications

The company has outlined the expected financial impact of this demand notice. The primary implications include a mandatory pre-deposit requirement of 20% of the demand amount to file an appeal, which will result in cash outflow. Additionally, the company will need to disclose this amount as contingent liability until the conclusion of the final appeal process.

Company's Response Strategy

Stovec Industries has announced its intention to contest the demand notice through proper legal channels. The company plans to file an appeal before the Appellate Authority under Section 246A of the Income Tax Act, 1961 against the demand notice within the stipulated time period.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also published this information on its official website at www.stovec.com as part of its transparency obligations to stakeholders.