Material Procurement Policy and objectives;

1. Compliance with Laws and Regulations

We shall comply with the spirit of various laws and regulations regarding business transactions and
conduct procurement activities pursuant to laws and regulations.

The BHIPL Group observes laws and regulations of respective countries and endeavors to
understand and respect international norms and guidelines in conducting its procurement
activities.

Purchasing/procurement personnel observe relevant country laws and regulations. In addition,

they will constantly monitor international norms and guidelines, industry standards and their
trends and strive to respect them in engaging in transactions.

2. Open Door Policy

We shall conduct the best transactions under the principle of free competition in India and/or abroad.

The BHIPL Group endeavors to engage in highly transparent transactions that are just and fair,
and does not participate in cartels or bid-rigging.

Purchasing/procurement personnel do not participate in cartels or bid-rigging, and endeavor to

maintain sound relationships with suppliers. They also do not abuse their status to demand
inappropriate discounts, services, contributions, etc.

Purchasing/procurement personnel do not have personal interests with any supplier, and do not
accept personal benefits such as rewards or gifts.

3. Equity and Fairness

While selecting suppliers, we shall give comprehensive consideration to the quality, price advantage,
delivery assuredness, after-sales service, reliability and technological capabilities that they can offer,
under the principle of fair competition.

The BHIPL Group, in addition to quality, prices, delivery dates, and procurement periods,
properly assesses the financial situation, technological capabilities, social responsibility
initiatives, etc. of suppliers, and engages in transactions that are based on rational decision-
making.

Purchasing/procurement personnel rigorously assess goods and services, and engage in

transactions where consideration is given to quality, prices, delivery dates, and procurement
periods, as well as the financial situation, technological capabilities, corporate approach, and
social responsibility initiatives of the suppliers.

4. Green Procurement
To deploy environmentally-friendly business activities, we shall actively address the procurement of
materials that gives consideration to the global environment.
 The BHIPL Group promotes purchasing and procurement from suppliers that practice
environmental management by, for example working to conserve the environment and protect
natural resources.

Purchasing/procurement personnel promote green purchasing and procurement and

purchasing/procurement of environmentally-friendly products and services.

5. Maintaining Confidentiality
We shall strictly control any trade and technical confidential information that has become aware in the
course of purchasing transactions, and shall not disclose any such information to outside parties without
the supplier’s permission.

Purchasing/procurement personnel carefully manage confidential information relating to

transactions and safeguard intellectual property rights.

6. CSR Procurement
We shall drive CSR Procurement, which has laid down human rights, labor, safety and health,
environmental preservation, and ethical management.

Human rights/Labor
The BHIPL Group promotes purchasing and procurement from suppliers that respect human
rights and do not commit human rights infringements such as unjust discrimination, slave labor,
forced labor, child labor, human trafficking, etc.

Purchasing/procurement personnel do not force inappropriate transaction terms on suppliers

nor force them to accept unreasonably low prices, etc. and promote purchasing and
procurement from suppliers that respect human rights and do not support forced labor or long
working hours.

Safety and Health

The BHIPL Group promotes purchasing and procurement from suppliers that properly manage
health and safety risks and take action to improve occupational health and safety on an ongoing
basis.

Purchasing/procurement personnel promote purchasing and procurement from suppliers that

ensure occupational health and safety and take action to maintain and improve the health of
their workers.

7. Blocking of relationship with antisocial forces

We blocks relationships with antisocial forces such as crime organizations, refuses inappropriate
requests, and does not provide them with money.

Purchasing/procurement personnel adopt a firm attitude toward criminal organizational and

other antisocial forces, not allowing their involvement, and blocking any and all relationships
with them.
8. Relationship with stakeholders

We proactively communicates with stakeholders and promotes sustainable purchasing and procurement
based on cooperation grounded in trust relationships. Furthermore, the BHIPL Group collaborates with
suppliers to promote initiatives based on the CSR Procurement Guidelines.

Purchasing/procurement personnel collaborate with suppliers to promote initiatives based on

the CSR Procurement Guidelines. Furthermore, they endeavor to ensure suppliers'
understanding of the Guidelines and collaborate with suppliers with regard to initiatives for
improvement.

Applicable key performance indicators are given below.

To be used appropriate to the progress stage of Sustainable Procurement policy implementation.

1. Existing approved suppliers will be grouped based on business volume, quality criticality of product
being purchased, lead time, type of product etc., and all suppliers will be re assessed for relevant CSR
aspects: (2020- 21)
No of current suppliers assessed:

No of new sources registered/ evaluated:

2. List of regulatory, legal and company rules applicable for compliance requirements and monitoring
report.

3. Determine Criteria to assess supplier’s response to human rights and working environment relevant
to the nature of supplier plant.

4. Classification of materials those were procured with known rating on environmental impact.

5. No of suppliers responding our call on sustainable development aspirations.

6. No of suppliers to whom BHIPL supplier code of conduct was communicated.

7. No of responsible procurement surveys conducted.

8. No of suppliers evaluated based on the survey.

9. No of products to which quality plan is being prepared and incorporated in purchase terms.

10. No of suppliers having certified for any of the management system (ISO9001) (ISO 14001)(ISO 45001)
(ISO27000)

11. No of products to which Life Cycle Cost Assessment is available.

12. No of purchases made based on LCCA.

13. No of products identified to have ECO labels

14. No of components required to be safety certified.

15. No of products having environmental impact level defined

16. No of complaints received on product performance

17. No of feedback surveys made on supplier products from our customers.

18. No of products procured with end of life disposal proposals.

19. No of corrective actions carried out on procured products complaints.

20. No of improvement suggestions given to suppliers and their feedback and corresponding Customer
satisfaction index:

21. No of suppliers given awareness training on CSR obligations.

22. No of suppliers audited on CSR issues.

23. Disputes with suppliers

24. Suppliers discarded based on noncompliance to CSR criteria (ex> found to be illegal)

25. Share of purchase volume among suppliers.

26. Procurement personnel trained on CSR criteria.

27. Identified best supplier.