Broadening horizons for a

Sustainable future

102nd Annual Report 2022 KANSAI NEROLAC PAINTS LIMITED

Broadening horizons for a

Sustainable future

AT KANSAI NEROLAC PAINTS LIMITED (KNPL), WE AIM TO BUILD "A FUTURE WITH A FUTURE".

A sustainable future for an organisation is one in

Over the years, we have built an innovation-

which it can achieve the best possible balance

driven organisation and have created several

between The 3 P's People, Planet and Profit.

technology differentiators to offer unique and

Here at KNPL, we focus on protecting and

environment-friendly products and solution to

nurturingthis triple bottomline.

our customers. We have broadened our product

As we enter the second century of our journey,

portfolio and expandedour service network to

meet the evolving needs and preferences of

we have increasedour

efforts to promote

our customers.

a people-centricculture byexpanding the

horizons of collaboration, innovationand

empowermentin the organisation.

Our progressive paradigm of innovation

In addition to the above, another horizon that

and sustainability has always led to:

we arecommitted to consistently contribute

• Better profits for our investors

to the society through our CSR initiatives.

• Nurturingand progressive culture for

We believeby doing so, we make significant

contribution tothe United Nations Sustainable

our internal stakeholders

Development Goals (UN SDGs).

• Planet-friendlyprocess and products

We continue to instil an advanced sustainability

for environment sustainability

culture in the organisation. We have been

persistently stretching the limits of sustainability

in the industry and have been a front-runner

in reporting its ESG disclosureson global

platforms. In order to further our sustainable

development

strategy,

we majorly focus

on water positivity, increase contribution of

energy from

renewable

sources, reduction

in carbon footprints, reduction in hazardous

waste generation and sustainable sourcing of

raw materials.

Corporate Information

BOARD OF DIRECTORS

Mr. Pradip Panalal Shah

Chairman (Independent Director)

Mr. Harishchandra Meghraj Bharuka

Vice Chairman and Managing Director (Up to 31st March, 2022)

Mr. Noel Naval Tata

Non-Executive Director

(Independent Director)

Mr. Anuj Jain

Managing Director (From 01st April, 2022) Executive Director (Up to 31st March, 2022)

Mr. Hitoshi Nishibayashi

Non-Executive Director

Ms. Sonia Singh

Non-Executive Director

(Independent Director)

Mr. Shigeki Takahara

Non-Executive Director

Mr. Takashi Tomioka

Non-Executive Director

CHIEF FINANCIAL OFFICER

Mr. P. D. Pai

COMPANY SECRETARY

Mr. G. T. Govindarajan

BANKERS

AXIS BANK LTD.

HDFC BANK LTD.

ICICI BANK LTD.

STANDARD CHARTERED BANK

STATUTORY AUDITORS

S R B C & CO LLP, Mumbai

REGISTERED OFFICE

NEROLAC HOUSE Ganpatrao Kadam Marg, Lower Parel, Mumbai-400 013, Maharashtra.

Tel: +91-22-24934001

Fax: +91-22-24936296

Website: www.nerolac.com

INVESTORS RELATIONS

E-mail ID: investor@nerolac.com

Corporate Identity Number (CIN): L24202MH1920PLC000825

1

About the Report

REPORTING PERIOD, SCOPE AND BOUNDARY

This Report contains the financial and non-financial information of Kansai Nerolac Paints Limited (hereafter referred to as 'KNPL' or the 'Company') and its subsidiaries for the period 1st April, 2021 to 31st March, 2022, or the 'reporting period'.

APPROACH TO REPORTING

The Report takes a broader approach of integrated reporting by covering information beyond financial capital to five other capitals - natural, intellectual, manufacturing, social & relationship and human capital.

Through this Report, we demonstrate the inter- linkage of these capitals and how the Company uses them in its business model to maximise value creation for itself and all the stakeholders while managing trade-offs, risks and material issues. This Report intends to serve as a concise and all-inclusive communication about the Company's value creation process using both financial and non-financial resources.

The Report further provides insights into the Company's operating context, the strategies along with risks associated in achieving them and expectation of prospects and performance. Governance-related inputs have been covered to provide insights on how the Company protects value and interests of stakeholders.

To make the Report inclusive and enable stakeholder better evaluate our performance and prospects, both qualitative and quantitative data have been captured. This will help them make informed decision regarding their engagement with the Company.

REPORTING PRINCIPLE

The financial and statutory information presented in this Report complies with the requirements of The Companies Act, 2013 (including the rules made thereunder), the Indian Accounting Standards and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The non-financial information is disclosed in accordance with Global Reporting Initiative (GRI) Standards: Core option. It is based on calculation methodologies conforming to globally accepted standards and is presented in a succinct and comparable manner to enhance the Report's value for all stakeholders. The assumptions, exclusions and restatements have been included wherever applicable. Further, the Report also follows the content and guiding principles guidelines of Integrated Reporting framework by the International Integrated Reporting Council (IIRC).

APPROACH TO MATERIALITY

The Report covers key material issues which have been identified basis various stakeholder engagements, their impact on value-creation process and the Company's approach to address them with a measurable target. This facilitates stakeholders in making informed decisions with regards to their engagement with the Company.

ASSURANCE

Assurance on selective non-financial disclosures of KNPL have been assured by M/s Aneja Associates. The assurance has been given against the disclosures' adherence to the GRI's Sustainability Reporting Standards.

2

Contents

CORPORATE OVERVIEW

1-99

Corporate Information

1

About the Report

2

Farewell note from Mr. H. M. Bharuka

4

Message from Managing Director

5

Key Highlights

8

Performance Highlights

10

Corporate Profile

12

Our Product Portfolio

14

Our Operational Footprint

18

Our Strategy and Future Orientation

20

Our Value Creation Model

26

Staying Engaged with

28

the Stakeholders

Materiality Assessment

30

Opportunities & Threats

34

Risk and Concerns

36

Nurturing our Capitals and

38

ESG approach

Natural Capital

42

Intellectual Capital

58

Financial Capital

66

Manufacturing Capital

70

Social and Relationship Capital

80

Human Capital

90

STATUTORY REPORTS

100-239

Notice

100

Board's Report including Management

113

Discussion and Analysis

Report on Corporate Governance

205

Business Responsibility Report

226

FINANCIAL STATEMENTS

240-357

Standalone Financial Statements

Independent Auditor's Report

240

Balance Sheet

250

Statement of Profit and Loss

251

Statement of Changes in Equity

252

Statement of Cash Flows

253

Notes

255

Form AOC-1

300

Consolidated Financial Statements

Independent Auditor's Report

301

Balance Sheet

308

Statement of Profit and Loss

309

Statement of Changes in Equity

310

Statement of Cash Flows

311

Notes

313

Summarised Standalone Statement

of Profit and Loss of 15 Years

357

For more details, please visit:

www.nerolac.com

102nd Annual Report 2022 KANSAI NEROLAC PAINTS LIMITED

Sustainable future

Broadening horizons for a

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Kansai Nerolac Paints Limited published this content on 31 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2022 15:30:03 UTC.