Kansai Nerolac Paints Limited Annual Report 2023

COLLABORATION
Kansai Nerolac Paints Limited

103rd Annual Report 2023
At Kansai Nerolac Paints Limited, we aim to highlight transformative power of
collaboration in bringing colour and creativity to life.
We have focussed on empowering our customers, partners, employees and
communities throughout the year.
We firmly believe that collaboration holds This includes collaborating with suppliers
the key to constructing a sustainable future. to reduce our carbon footprint, minimising
It is through collaborative efforts that we can waste and partnering with local communities
forge a path towards a more equitable and to promote the responsible use of our
inclusive world, while also fuelling innovation products.
and driving growth.
We have extended our collaboration to
As an organisation driven by innovation, we our value chain partners, imparting training
have invested in fostering a collaborative and awareness sessions on environmental,
culture to promote cross-functional teamwork social, and governance (ESG) topics as we
and sharing of ideas. invite them to embark on our collective
sustainability journey. Our internal teams
This approach has resulted in the
have worked together to promote workforce
development of new technologies,
development, ensuring a collaborative
improved business processes, and better
approach to create opportunities for
understanding of customer needs.
employees. Through these efforts, we strive
This, in turn, has led us to producing high- to foster a culture of continuous learning
quality, innovative products through close and growth within our organisation.
collaboration with customers and partners.
As we look ahead, we are confident that our
In line with our commitment to sustainability, unwavering commitment to collaboration
environmental, and social accountability, we will pave the way for us to generate
have taken active steps towards fulfilling our even greater value for our customers,
responsibilities. stakeholders, and communities.
We have made strides in areas such as
renewable energy, diversity and inclusivity,
employee growth, community engagement,
and responsible sourcing.
Together, let us harness
the transformative power
of collaboration as we
paint a vibrant canvas of
endless possibilities!
KANSAI NEROLAC PAINTS LIMITED CORPORATE OVERVIEW
ABOUT THE REPORT

REPORTING PERIOD, SCOPE
REPORTING PRINCIPLE
AND BOUNDARY
This Report contains the financial and non-financial The financial and statutory information presented in this
information of Kansai Nerolac Paints Limited (hereafter Report complies with the requirements of The Companies
referred to as ‘KNPL’ or ‘the Company’) and its Act, 2013 (including the rules made thereunder), the Indian
subsidiaries for the period 1st April, 2022 to 31st March, Accounting Standards and the Securities and Exchange Board
2023, or the ‘reporting period’. of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
The non-financial information is disclosed in accordance

APPROACH TO REPORTING with Global Reporting Initiative (GRI) Standards: Core option.
It is based on calculation methodologies conforming to
globally accepted standards and is presented succinctly
The Report takes an integrated approach by providing and comparably to enhance the Report’s value for all
information on various capitals beyond financial, stakeholders. The assumptions, exclusions and restatements
including natural, intellectual, manufactured, social & have been included wherever applicable. Further, the Report
relationship, and human capital. It demonstrates the also follows the content and guiding principles guidelines
interlinkage of these capitals within the Company’s of Integrated Reporting framework by the International
business model to create value for stakeholders while Integrated Reporting Council (IIRC).
managing risks and material issues.
The Report serves as a comprehensive communication,

encompassing financial and non-financial resources,
APPROACH TO MATERIALITY
highlighting the Company’s value-creation process.
It also includes insights into the operating context,
strategies, associated risks, and future prospects. The Report covers key material issues which have been
Governance-related information is provided to identified basis various stakeholder engagements, their
showcase how the Company protects stakeholder impact on value-creation process and the Company’s
interest. approach to addressing them with a measurable target. This
The Report presents both qualitative and quantitative facilitates stakeholders in making informed decisions with
data to enable stakeholders to make informed decisions regards to their engagement with the Company.
regarding their engagement with the Company.
ASSURANCE
Assurance on selective non-financial disclosures of KNPL

has been assured by M/s Aneja Associates. The assurance
has been given against the disclosures’ adherence to the
GRI’s Sustainability Reporting Standards.
2
Corporate Information FY 2022-23 103rd Annual Report 2023
CORPORATE
INFORMATION FY 2022-23
BOARD OF DIRECTORS BANKERS
Mr. Pradip Panalal Shah AXIS BANK LTD.
Chairman, HDFC BANK LTD.
Non-Executive, Independent Director ICICI BANK LTD.
Mr. N. N. Tata STANDARD CHARTERED BANK

Non-Executive, Independent Director
(upto 10th August, 2022) STATUTORY AUDITORS
S R B C & CO LLP, Mumbai
Mr. Anuj Jain
Managing Director
REGISTERED OFFICE
Mr. Hitoshi Nishibayashi
NEROLAC HOUSE
Non-Executive Director
Ganpatrao Kadam Marg,
Ms. Sonia Singh Lower Parel, Mumbai-400 013, Maharashtra.
Non-Executive, Independent Director
CORPORATE OFFICE
Mr. Shigeki Takahara
28th Floor, A-wing, Marathon Futurex,
N.M. Joshi Marg, Lower Parel,
Mr. Takashi Tomioka Mumbai – 400 013, Maharashtra
TELEPHONE NO.
Mr. Bhaskar Bhat
Non-Executive, Independent Director +91-22-40602500, +91-22-40602501
(from 10th August, 2022)
CORPORATE WEBSITE
CHIEF FINANCIAL OFFICER www.nerolac.com
Mr. P. D. Pai
COMPANY SECRETARY INVESTORS RELATIONS

Mr. G. T. Govindarajan E-mail ID: [email protected]
Corporate Identity Number (CIN):
L24202MH1920PLC000825
3
CONTENTS
CORPORATE OVERVIEW
02-127
About the Report 2

Corporate Information 3
Message from Managing Director 6
Key Highlights 10
Performance Highlights 12
Corporate Profile 14
Our Product Portfolio 16
Our Operational Footprint 20
Our Strategy and Future Orientation 22
Our Value Creation Model 24
Staying Engaged with Our Stakeholders 26
Materiality Assessment 30
Opportunities & Threats 34
Risk and Concerns 36
Nurturing our Capitals and ESG approach 39
Natural Capital 45
Intellectual Capital 68
STATUTORY REPORTS
Financial Capital 82
128-249
Notice 128
Manufactured Capital 86
Board’s Report including 140
Social and Relationship Capital 100
Management Discussion and Analysis
Human Capital 113
Report on Corporate Governance 196
Business Responsibility and 218
Sustainability Report
For more details, please visit:

www.nerolac.com
4
FINANCIAL STATEMENTS
250-370
Standalone Financial
Statements
Independent Auditor’s Report 250
Balance Sheet 260
Statement of Profit and Loss 261
Statement of Changes in Equity 262
Statement of Cash Flows 263
Notes 265
Form AOC-1 309
Consolidated Financial
Statements
Independent Auditor’s Report
310
Balance Sheet
318
Statement of Profit and Loss
319
Statement of Changes in Equity
320
Statement of Cash Flows
321
Notes
323
Summarised Standalone
Statement of Profit and Loss of
15 Years 370
5
MESSAGE FROM
MANAGING DIRECTOR
I personally believe that culture

plays a very important role
in shaping the organisations
future. We adopted a culture of
innovation, collaboration and
empowerment and took a series
of initiative to build it. Several
innovation workshops were
conducted with employees at all
levels of the organisation.
being and growth. Happy employees are more engaged,

Dear Shareholders,
more productive, have a positive outlook on one’s work,
On 31st March, 2023, I completed one year as the MD of and contribute better to stakeholder satisfaction. Multiple
KNPL. I would like to express my sincerest appreciation for interventions were conducted throughout the year to ensure
the support and guidance extended to me during this period. high employee involvement, participation and engagement in
As we move into a new year, it is important to reflect on the the corporate agenda. As a result, internal surveys indicated
challenges we faced and opportunities we created. This a significant uptick in the internal ‘Employee Happiness’
annual report stands as a testament to our achievements, measured during the year.
offering valuable insights into the current state of our business
and outlining our visionary outlook for the future. Culture of Innovation, Collaboration & Empowerment
I personally believe that culture plays a very important role
Organisation Philosophy – People in shaping the organisations future. We adopted a culture
The Company embarked on a transformative journey in of innovation, collaboration and empowerment and took a
the past year, placing its employees at the heart of every series of initiatives to build it. Several innovation workshops
endeavour. The core philosophy being that the Company’s were conducted with employees. Idea generation sessions
success is strongly connected with its employees’ well- were conducted and cross-function teams were deployed
6
Message from Managing Director 103rd Annual Report 2023
to implement the identified ideas. The cross-functional

approach led to higher collaboration. During the year, there
were several strategy projects identified by the Company.
Employees were entrusted with these projects and were
empowered to take decisions to drive them. During the
process, both the individual employee as well as the team
of employees had an experience which capitalised on
their expertise and judgement. Thereby increasing their
commitment to the organisation and aiding them to feel
empowered and motivated.
Economic & Business Scenario

In the last few years, businesses have experienced both the
highs and lows of the macroeconomic situations. Inflation on
account of material prices peaked and then started to mellow
down during the year. Supply chain challenges eased out, but
pockets of disruptions continued. Volatility in currency also
played out during the year and witnessed a significant Rupee
Vs US Dollar peaking. While crude oil prices continued to
22.6%
decline, the situation seemed volatile due to various geo- EBITDA
political events playing out.
In India, infrastructure spending, healthy demographics, and
push for real estate and housing supported the paint demand. 29.9%
The Automotive industry recovered from chip shortages and PAT
exhibited strong demand. Services started emerging as an
important element in satisfying end-consumer needs.
Performance Overview
270%
KNPL experienced robust growth across various segments The board has recommended a dividend of 270% for FY23.
and successfully expanded its product portfolio, distribution
reach, dealer network, and influencer programs. portfolios. As a result of these actions, we achieved significant
The Automotive business showcased outstanding demand, improvements in financial performance. Notably, our EBITDA
while the Performance Coating and Auto Refinish markets witnessed a remarkable growth of 22.6%, while our PAT
also experienced healthy growth. experienced an impressive surge of 29.9%. Reflecting our
strong financial position, the board recommended a dividend
In the Decorative business, we observed strong demand in of 270% for FY 2022-23.
the Projects segment and for Wood-finishes, Waterproofing,
and Construction chemicals. Additionally, our services The Nerolac Story - Our Strengths
offerings was expanded to more cities, receiving a highly With a rich legacy spanning 100 years, the Company boasts
positive response from consumers. a diverse portfolio of products catering to a wide range of
segments within decorative and industrial coatings. Through
Moreover, we made concerted efforts to promote and sell
our painting solutions, we provide ‘Beauty and Protection’
premium products in both the Decorative and Industrial
to everything that a household uses on a daily, be it paints
sectors. As a result, our topline recorded an impressive
for homes (Interior & exterior, wood finishes), automobiles
increase of 19%.
(4-wheeler, 2-wheeler), consumer durables (fans, microwaves,
On the profitability side, the Company implemented a series refrigerators, washing machine), personal use articles (hair
of measures. These included judicious cost control measures, clips), and transportation infrastructure (bridges, metro
collaborative efforts with value chain partners, price increase rail). This is why we say ‘There is a little bit of Nerolac in
initiatives, and strategically exiting from low-margin product everybody’s life’.
7
Nerolac brand is the 2nd strongest brand in the industry. The Company’s growth strategy focusses on delivering a
The enduring Nerolac jingle continues to strike a chord with unique customer experience through NXTGEN painting
consumers, forging a connection that echoes our illustrious service, consultation services, increased engagement with
legacy. The Company has strong tie-ups with overseas painters, partnerships with architects and interior designers. In
companies to develop the best solutions for customers. Decorative business, we implemented collaborative strategies
Through relentless innovation, we strive to introduce and invested in various initiatives to strengthen our influencer
pioneering products that set new benchmarks in the market. and distribution network. Under the brand Expressions Paint+,
Leveraging Japanese technology, KNPL delivers these the Company developed unique-to-category products and
distinctive offerings and tailored solutions to cater to the democratised the segment by launching premium features
evolving needs of our customers. at popular price points. Our painter engagement programme
‘Pragati’ was expanded to reach out to more painters and
Strategy establish deeper connections with them. We launched a
In the realm of our Industrial business, where we proudly unique loyalty programme ‘Illuminati’ for architects & interior
hold a leadership position, our primary focus is to achieve designers. The consumer journey was taken to the next
profitable growth across all the segments we serve. level through our Nxtgen Painting and consultancy services,
which provided all services at the doorstep of the consumer
with just a click of a button. The Company expanded its
geographical reach by adding more retail touchpoints and
experience stores - Nxtgen Shoppe.
To establish a deeper connection with consumers, the

Company made strategic investments in branding and
To drive this objective, we media campaigns, ensuring a more prominent presence in
have introduced cutting-edge the market. Various channels were utilised to promote the
brand and its products, including TV commercials, print
technologies such as tin-free CED advertisements, outdoor hoardings, OTT platforms, and
online advertising. A new TV commercial featuring our brand
and Medium Solid base coats in ambassador Ranveer Singh was launched to promote the
the Automotive sector. We have Impressions range of products. Additionally, the Company
sponsored prestigious events such as the IPL (Indian Premier
made substantial progress in the League) and Indian Idol, further enhancing its brand visibility
new and rapidly growing Electric and reach.
Vehicle segment. Creating Digital Assets

The Company has made significant strides in the digital realm
by launching multiple digital platforms. These platforms cater
In the Auto Refinish sector, our emphasis lies on expanding to both internal and external stakeholders, enhancing agility,
our market share through an extensive network expansion. operational efficiencies, visibility, and real-time information for
In Performance and Powder Coatings, multiple initiatives all parties involved.
have been planned and launched around expanding our
product portfolio based on superior technology. Our access Through the development of a comprehensive digital
to advanced technology and approvals, facilitated by our ecosystem, the Company offers various applications that
association with Kansai Paint, its entities, and other technical deliver a superior experience and enhanced visibility across
collaborators, has enabled us to enter new segments and the entire value chain. Users, including consumers, can track
secure approvals from customers within those segments. every stage of the painting cycle in their homes, starting from
We have set a series of initiatives to improve the share of the expression of interest to its completion. Additionally,
premium products in the portfolio. We have also consciously the Company provides a range of online tools to assist
exited from low-profitable segments. We collaborated with consumers and influencers in making informed decisions, as
customers to deliver sustainable products that fulfil their well as providing training and educational resources.
unique requirements.
8
Message from Managing Director 103rd Annual Report 2023
Internally the Company has also launched several digital is robust, and we continually seek ways to improve our
initiatives to drive value and efficiency in the areas of sustainability efforts.
manufacturing and logistics. In addition, the Company
Through our sustainable practices, we are driving our
developed mobile-based applications for its various go-to-
sustainability efforts and building a strong foundation for our
market teams to improve agility.
business to continue generating value for years to come. To
learn more about our specific ESG initiatives, please refer to
Building Future Capabilities
the later sections of this integrated report.
To secure its operations, the Company has also invested in
Business continuity. We have invested in a green-field facility Subsidiaries
in Vizag to meet future demand in Decorative Business.
We have invested into resin manufacturing at Sayakha and Our domestic subsidiary Nerofix has become a wholly
emulsion manufacturing at Amritsar, enhancing our capability owned subsidiary of the Company through the acquisition
to service better. On top of this, we are creating a robust of 40% of shares of total shareholding from Poygel.
and responsive supply chain built on a strong IT backbone,
ensuring our customers’ continuity of supplies and business. During the year, Nerofix top line grew significantly and also
Agility in replenishment lead time and small order servicing grew its EBITDA.
are emerging focus areas. Planning and has set up a Far DR With regards to international subsidiaries, KNPL was able to
site and continues to invest so as to strengthen its security turnaround its Sri Lankan operations and gain market share
architecture. despite a tough business and economic environment. While
KNPL has a strong R&D setup with cutting-edge technologies it faced headwinds in Bangladesh, the company was able
in diverse business segments and coating applications. We to get profitable growth. In Nepal, the company was able
work closely with our customers to develop customised to maintain momentum and ensure a healthy bottom line
solutions and focus on developing sustainable and despite the many challenges in the business climate this year.
environment-friendly products and solutions. We engage Outlook and Way Forward
with our overseas partners and develop new solutions.
The business environment is changing more rapidly than
ever. Considering the geo-political tensions, material price
Delivering Long-term Sustainable Value
movement and currency fluctuations, it is expected to be
At KNPL, sustainability is deeply ingrained in our business challenging. Digitisation will continue to shape our business
objectives. We prioritise protecting and nurturing our models and ways of engagement with our stakeholders.
triple bottom line of People, Planet, and Profit by adopting Looking ahead, we will continue to prioritise employee
sustainable growth practices. Our consistent focus on ESG engagement and well-being, leveraging our strengths
ensures we are at the forefront of sustainable practices. We in digital platforms and innovation. Our commitment to
have identified key materiality areas such as de-carbonisation, sustainability will drive long-term value creation while
resource use, quality of life, diversity, and governance to positively impacting society and the environment. Through
drive our sustainability strategy. ongoing innovation and collaboration with our esteemed
We are committed to becoming a water-positive organisation customers, we endeavour to deliver meaningful value and
in the upcoming year and have become a TCFD supporter. foster mutually beneficial partnerships.
Additionally, we have set carbon emissions reduction targets I would like to express my heartfelt gratitude to our dedicated
for 2030 to limit global warming below 1.5 degree Celsius employees, who have shown unwavering commitment and
and submitted them for validation to the Science Based resilience in the face of challenging circumstances. Their
Targets initiative (SBTi). relentless efforts have been instrumental in driving our
success. Additionally, I sincerely appreciate our shareholders,
As a responsible corporate citizen, we are committed to several
whose trust and unwavering support have been invaluable to
important initiatives. These include providing eco-friendly
us.
products, promoting water neutrality, conserving energy,
mitigating climate change, decarbonising, supporting local
Anuj Jain
communities, and strengthening governance, compliance,
Managing Director
and risk management functions. Our sustainability framework
9
KEY HIGHLIGHTS Brand Building:
We Strengthened our brand expression Paint + by

introducing new advertisements and content around
ESG: a differentiated range of products. In our advertising,
we highlighted specific product benefits facilitated by
Japanese technology and amplified by our signature
KNPL has achieved top ESG rankings in various
Nerolac jingle. We also upgraded the company
assessments, including the S&P Corporate Sustainability
website to enhance user experience and organise
Assessment where we are rated in top 10% globally
information better.
within Chemical Industry Group and rated in Top Quartile
in FTSE4Good Index. In the CRISIL ESG Rating, KNPL
Featured in Leadership Category and amongst top 14 out
of 575+ companies and rated #1 in Paint Sector. Product Portfolio:
The company has committed to near term targets in-
line with Science-Based Targets initiative (SBTi). Also, In Decorative business, we continued to launch
it adopted framework of TCFD (Task Force on Climate- products with the Paint+ promise. Nerolac Impressions
related Financial Disclosures) for Risk assessment due to Kashmir and Nerolac Excel Everlast 12 are some
climate change. unique products launched. In Construction chemicals
category, the Company launched Damp Lock and
NoDamp+ under the which provides unique properties
of waterproofing, durability and protection.
Consumer services: In the Industrial Business, KNPL has introduced several
new generation products and solutions which are
environment friendly, Resource-efficient (Energy-
The Nxtgen painting services was expanded to more than
saving) and Value-adding technologies like low bake
90 cities, thus, reaching out to more no. of consumers with
technology, high solids low VOC, Monocoats, Direct to
a superior painting experience. Nerolac’s Nxtgen shoppe,
Metal. We introduced breakthrough products like Tin
which is an experience centre for consumer to fulfil his
free CED in Auto, High resistance coating for fuel tanks
all needs for home painting was expanded to more than
for 2 Wheelers, Fluro Undercoat & Flouro Topcoat
40 stores at country level.
(5 coat system) for performance coating and High
Abrasion resistance powder for powder coating.
Influencer initiatives:
For the Architect & Interior Designer segment, we

launched a new program “Illuminati” which has received a
positive response during the year.
10
Key Highlights 103rd Annual Report 2023
Foray into new segments

Recognition:
In Decorative business, KNPL forayed into the tile adhesive
and customised admixture category this year. In Industrial The company was honored with the title of “Dream
business, we entered into new segments such as seam Employer of the Year 2022” by Times Ascent World HRD
sealer, underbody blacks, alloy wheels, and the fasteners Congress for its people-centric approach, employee
coatings segment. engagement initiatives, and commitment to creating a
positive work culture.
Culture Building: Technology Differentiators

& Innovation:
The main focus for this year was to successfully imbibe Use of Nano technology, Use of low bake technology,
the spirit of innovation, collaboration and empowerment Transition to high solids and low VOC platforms,
in every employee. This was made possible via multiple Shift from liquid paints to zero VOC Powder coating.
engagement sessions and various initiatives. Innovation
workshops done during the year generated more than
500 ideas. Strategic workshops conducted at various
levels to identify strategic interventions required. The IT & Digital:
multi-disciplinary approach and positive interdependence
led to collaboration, increasing their sense of commitment
to the organisation and aiding them to feel empowered Created a whole ecosystem of Digital applications
and motivated. and tools for Go to Market Initiatives. These digital
applications provided necessary insights and
dashboards on mobile screens, enabling faster
accessibility to real-time data.
Manufacturing Footprint:
Investment committed to Capacity expansion at existing

Jainpur plant and in a green-field facility in Vizag.
11
PERFORMANCE HIGHLIGHTS
FINANCIAL HIGHLIGHTS NON FINANCIAL

HIGHLIGHTS
Net Turnover (₹ in Crores) Capacity (Million litres)
7,081.0 5,948.9 606 583
19.0% 3.9%
Change In % Change In %
EBITDA (%) R&D Expenses (₹ in Crores)
11.2% 10.9% 40.39 33.00
30 22.4%
Change In basis Points Change in %
PAT (₹ in Crores) CSR Spend (₹ in Crores)
486.4 374.3 12.70 14.06
29.9% -9.6%
Change In % Change In %
Note: Performance Highlights are based on standalone performance
12
Performance Highlights 103rd Annual Report 2023
Electricity Consumption through Specific Water Consumption (KL/KL of FG)

Renewable Sources in % (Manufacturing (Manufacturing Facilities including Maprol and
Facilities Excluding Maprol and Perma) (%) Perma) (KL/KL of FG)
31.48 30.78 1.14 1.16

70 -1.72%
Change In basis Points Change In %
Electricity Consumption through Total Emissions (Scope 1 + Scope 2)

Renewable Sources in % (Manufacturing MT of CO2 (Organisation Wide)
Facilities including Maprol and Perma) (%)
45,823 39,899
30.27 29.47
80 14.85%
Change in basis Points Change in %
Energy Consumption through Renewable

source in % (Organisation Wide)
48.61 51.64
-303 FY 2022-23 FY 2021-22

Change In basis Points
Note: Organisation Wide covers KNPL India (8 plants), Offices and Depots
13
CORPORATE PROFILE
A subsidiary of Kansai Paint Co., Ltd., Japan, Kansai Nerolac Paints Limited
(KNPL) is one of India’s leading players in the Paint industry, catering to
the evolving need for newer Coating solutions of customers. A future-
focussed Company rooted in innovation, KNPL bespeaks quality and
manufacturing excellence, making it a preferred choice for a growing
and ever-evolving customer base.
Our Vision: Our Mission:

We design Solutions that Protect, We leverage superior
Inspire and Touch Lives everyday technology to contribute to
our Customers and Society,
in a sustainable manner,
with innovative Products
and Services, through a
competent workforce built on
a culture of Customer Focus,
Integrity and Respect for our
Our Brand Promise: Stakeholders.
Renew Life
Our Brand Expression: Our Purpose:

PAINT+ Create Environment for a
Healthy and Beautiful future.
14
Corporate Profile 103rd Annual Report 2023
ORGANISATIONAL VALUES
Integrity Customer Focus Innovation:

We build strong trust with all We continuously strive to We pioneer Innovation
stakeholders, by doing the right understand and exceed by engaging our
thing, and by taking decisions Customer expectations. collective wisdom and
that enhance the reputation of the knowledge to create
organisation in the society. new value propositions,
and continuously strive
to generate original
and novel solutions for
products, services, and work
processes. We experiment
in different and ground-
breaking ways to deal with
value creation opportunities
and challenges, through a
deep understanding of the
Accountability:
issue at hand.
We encourage organisation
members to take responsibility
for their own actions and
decisions, show commitment to all
stakeholders, and accomplish work in
an appropriate and efficient manner.
Entrepreneurial Mindset:
Respect:
We facilitate the emergence of
We respect diversity and embrace cultural entrepreneurial ideas that have a long-
and individual characteristics of organisation term perspective, originality in thinking,
members, customers and communities by and practicality of execution, taking
showing empathy and understanding the responsibility to see these ideas through
viewpoints of distinct beliefs, philosophies with ownership at all times. We shall
and cultures. We encourage and foster an continue contributing to People and
environment of learning, teamwork and Society by providing sustainable value to
cooperation, that enables the development of all stakeholders.
all organisation members.
15
OUR PRODUCT PORTFOLIO

Our product proposition is designed to cater to the evolving needs of customers in the key segments of
Decorative and Industrial.
DECORATIVE - (NEW LAUNCHES)
Impressions Excel Suraksha Perma Perma Tile TermiProtect

Kashmir Everlast 12 Plus NXT NoDamp+ Damp Lock Adhesive
Excel Anti Peel Beauty True Sheen Premium Economy 1K Epoxy Economy Wonderwood
NXT Smooth NXT Exterior Primer Exterior Primer Interior 111 Thinner
Emulsion NXT Primer Primer
DECORATIVE
Interior Range Exterior Range
Impressions Impressions Impressions Excel Mica Marble Excel Top Guard Excel Top Guard
UHD HD Ultra Fresh Stretch & Sheen (Topcoat) (Basecoat)
Beauty Gold Beauty Beauty Excel Excel Mica Excel Anti

Washable Gold Sheen Total Marble Peel
Beauty Ceiling Beauty Beauty Little Suraksha Dust Suraksha Suraksha Suraksha
Emulsion Smooth Master Resist Sheen Plus Acrylic
16
Our Product Portfolio 103rd Annual Report 2023
Designer Range Primers
Ideaz Glitter Metallics Excel Alkali Exterior Nerolac Zinc

Primer Primer Yellow Primer
Enamel
Ready Premium Popular

Nerolac PU Synthetic Satin Mix Primer WB Primer WB
Enamel 10 in 1
Wood Finish Waterproofing
Gloria 2K PU Italian 2K PU ICRO Range Perma Rapid Nerolac Perma Nerolac Perma
Set Nodamp Damp Protect
Adhesives Exterior
Nerolac Perma Nerolac Perma Nerolac Perma

Nerolac Aqua Nerofix Nerofix
Damp Protect Interior Super 2K Waterproof Putty
Smart Gold
Solider
Nerofix Nerofix Soldier Premium Soldier Popular Soldier Soldier

Super Smart Exterior Exterior Popular Interior Interior
Emulsion Emulsion Emulsion Emulsion
17
OUR PRODUCT PORTFOLIO

INDUSTRIAL - NEW ADDITIONS
Automotive
4-Wheeler 2-Wheeler Commercial Vehicle
Shades of fuel tanks to be compliant

Commercialised 3 shades with superior
Introduced low-density seam sealer with E20 and E30, ensuring coating
functionality by using 3C-1B technology
and underbody sealant resistance to 20-30% ethanol blending
and low bake PU system
in petrol
Converted low solids TSA product

Tin free CED (LB-250T) that is free
to high solid PU product, aiding in
from heavy metals, Hazardous Air
Introduced low-bake products 15% reduction in VOC emissions and
Pollutants (HAPs), and has low VOC
60oC reduction in baking temperature
emissions
requirement
Performance Coating
General Industrial (GI) High Performance (HPC) Powder Coating (PC)
Introduced Super functionality Powder

2K High Weather resistance PU 5-coat system for Bridges of High-
offering High Abrasion resistance, was
System for Agricultural & Construction Speed rail Project with Fluro Undercoat
introduced for accessories to enhance
equipment manufacturer & Flouro Topcoat
the durability of coating by 2x times
High Abrasion & Chemical resistance

Monocoat Metallics for the Helmet
solvent free coating for the Pipelines in
Industry
the Refineries .
Metal Grip for the coper coils of the

Air conditioners to have protection
from oxidation & give better
performance.
Auto Refinish
Introduced a range of High Gloss Clear PU products in the Economy range
18
Our Product Portfolio 103rd Annual Report 2023
INDUSTRIAL
PERFORMANCE
AUTOMOTIVE
COATINGS LIQUID
Applications in Industries (General Industrial + High Performance Coating)

Passenger Vehicles, Commercial Vehicles, Tractors, Applications in Industries
Two-Wheelers, Three-Wheelers, Wheels and Auto Petroleum, Metal Industries, Chemicals and Fertiliser,
Ancillaries. Infrastructure, Cement Industry, Railways, Pipes
Key Products PreCoated Steel, Bridges, Drums and Barrels,
Cathodic Electro Deposition (CED) and Acrylic Cylinders, Electricals, Helmet, Pre-engineered
Cathodic Electro Deposition (ACED) Primers Buildings, Construction Equipment.
3 Coat – 1 Bake System Key Products
Medium Solid, Thermo Setting Acrylic (TSA),
Polyurethane (PU) Primer and Top Coats
Polyester Amino
Chlorinated Rubber Coatings
Monocoat Metallics
Epoxy Coatings Alkyds – Primers and Top Coats
High Mar Resistant Clear Coats
Zinc Rich Coatings
Super Durable Monocoats
Heat Resistant Coatings
Heat Resistant Paints
Floor Coatings
Auto Interior Coatings
Pipe Coatings
Polyurethane (PU) Coatings for Metal and Plastics
Coil Coatings
Polysiloxane
Fluoropolymer Coatings
IPNet Coatings
DTM Coatings
POWDER COATINGS Monocoat Metallic Coatings
Applications in Industries
Refrigerators, Washing Machines, Air Conditioner, AUTO REFINISH
Light Fixtures, Electrical, Auto Components, Pipes,
Rebar Steel, Architectural.
Applications in Industries
Key Products
After Market Repainting and Touch-up for Passenger
Epoxy Polyester Powder, Epoxy Powder, Pure Vehicles, Commercial Vehicles, Two-Wheelers,
Polyester Polyurethane Three-Wheelers, Bus Body, Auto Parts and Furniture.
Heat Resistance Powder
Key Products
Rebar Coatings, Pipe Coating Powders
Super Durable Powders, Bonded Metallic Polyurethane Paints - Retan PG Eco, Cardea,
Powders Nerokan, Acric EZ, Perfect Match
High Performance Anti-Corrosion Powder Nitrocellulose (NC) and NC Acrylic - NAP
System Modified Hybrid Alkyd-Based - Nova Plus
Putty - NC, Polyester, Body Fillers
19
OUR OPERATIONAL FOOTPRINT

Our Company has a widespread operational presence across the country, with manufacturing units strategically located to serve
our OEM clients and customers. This gives us a competitive advantage and strengthens our position in the market.
Goindwal Sahib, Punjab
Jainpur, Uttar Pradesh

Bawal, Haryana
Sayakha,
Gujarat
Sarigam,
Gujarat
(Perma)
Vishakhapatnam,
Andhra Pradesh
(Upcoming Plant)
Lote, Maharashtra
Kakoda, Goa (Marpol)

HO 8
Mumbai Plants
R&D 7
Vashi, Navi Mumbai Regional Distribution
Hosur, Tamil Nadu
Center (RDCs)
This map is a generalised illustration only for the ease of the reader to understand
103 1
the locations, and is not intended to be used for reference purposes. The
representation of political boundaries and the names of geographical features/ Depots Pan-India Upcoming Plant
states do not necessarily reflect the actual position. The Company or any of its
directors, officers or employees, cannot be held responsible for any misuse or
Visakhapatnam,
misinterpretation of any information or design thereof. The Company does not Andhra Pradesh
warrant or represent any kind of connection to its accuracy or completeness.
20
Our Operational Footprint 103rd Annual Report 2023
21
OUR STRATEGY AND

PEOPLE
FUTURE ORIENTATION
People centric approach
Culture of innovation,
collaboration & empowerment
Employee well-being
Employee development
KNPL has meticulously designed
its strategic roadmap to ensure the
delivery of robust and sustainable
financial performance. Our focus is
NEW
on generating enduring value for our BUSINESSES
stakeholders through responsible and
transparent practices. Wood finish: Offer wide range of
premium wood-finishes
Construction chemicals: Durable
and improved water proofing
solution
Projects: Expand to new cities,
focus on new segments,
techno-commercial approach
22
Our Strategy and Future Orientation 103rd Annual Report 2023
DECORATIVE
DISTRIBUTION
BUSINESS
Expand reach and add retail touch points

PAINT+ sale
Unique to category products

Democratising the category by launching
premium features at a popular price
SERVICE APPROACH
Communicating with Japanese Technology &
Jingle
Small order servicing
Ease of product & color selection though Same day delivery
online tools
Agility in replenishment lead time
INFLUENCER STRATEGY:
PAINTERS, ARCHITECT &
INTERIOR DESIGNER INDUSTRIAL
Expand reach to painters & deeper connect
BUSINESS
Launch programme for architects and interior
designers Grow business share
Launch products based on superior technology
Reach out to project consultants
Entry into new segments and new approvals
Large service offerings
Profitability improvement
Enhanced loyalty programme Premiumisation
Expand reach in dealer led business
SERVICES
DIGITISATION
Direct connect with consumer
Convenience of online service requests, color Outside in & Inside out
selection & budget calculator Connected, engaging & real time
Painting service with superior experience Superior experience
End to end support during the painting cycle

Consultancy services for Painting & water
proofing
SUSTAINABILITY
All services provided at door step with click of a
button
Decarbonisation
Resource use
Quality of life
Diversity
Governance
23
OUR VALUE CREATION MODEL

Input Value Creation Process
Financial Capital Our Manufacturing Process
NIL Total Borrowings ( ₹ in Crores)
₹ 53.89 Crores Other Equity
₹ 4,553.49 Crores Retained Earnings
₹ 139.6 Crores Capital Expenditure Premixing
Manufacturing Capital
8 Number of Plants Grinding
Filling
₹ 1,812.96 Crores Property, Plant and equipment
₹ 4,955.34 Crores Material Cost
Intellectual Capital
₹ 40.4 Crores Spend on R&D (including capex)
Tinting Thinning
138 Innovation and Technical Sessions
held in Different Forums
₹ 23.92 Crores Royalty
Our Key enablers
Natural Capital
5,00,744.11 GJ Total Energy Consumption -
(Within Organisation)
2,43,398.24 GJ Renewable Energy Diverse Effective Risk
1.14 KL.KL of FG Specific Water Consumption - Culture Management
(Manufacturing Facilities including
Marpol & Perma)
1,2014.39 KL Rainwater Used in Process
33% Green Belt
Human Capital Technology Customer Service

Robustness and Experience
3379 Permanent Employees
4.2 Employee Training (including
safety) in Persondays /
Employee / Year
Social and Relationship Capital Governance Beyond Commitment

Compliance to ESG
500+ Raw Material Supplier Base
16 Total Suppliers audited
₹ 12.7 Crores CSR Spend
24
Our Value Creation Model 103rd Annual Report 2023
Output and Outcomes

Our Strategy Financial Capital
₹ 20,802 Crores Market Capitalisation (As on 31st March, 2023)
People
₹ 7,081.02 Crores Revenue from Operations
₹ 793.89 Crores EBITDA
New Businesses ₹ 486.43 Crores PAT
₹ 386.19 Crores Operating Cash Flow
₹ 274.89 Crores Free Cash Flow
Decorative Business ₹ 53.89 Crores Dividend Paid (Paid during FY 2022-23)
Distribution
Manufacturing Capital
23 Million Litres Increase in plant capacity
Industrial Business
Note: FY 2022-23 Capacity Include Marpol and Perma
Digitisation
Intellectual Capital
2 No. of Patents Filed
Sustainability 64 New Products Launched
Natural Capital
Creating lasting value 45,823 GHG Emissions (MT of CO2 Eq.)-(Scope 1 + Scope 2)
for all stakeholders *including Biogenic
0.25 Hazardous Waste generated (% of Finished Goods)
463 KL Liquid Discharged (* including Marpol and Perma)
37.14% GHG Emissions avoided
22.59% Recycled / Reused Water (* including Marpol and
Business Partners Shareholders & Perma)
Investors 9,920 MT Extended Producer Responsibility - Plastic Waste
Management
Human Capital
₹ 2.1 Crores Revenue per Permanent Employee

Employees Customers 73% *GPTW Trust Index (* Once in 2 Years)
Social and Relationship Capital

12 New Raw Material Manufacturers Added
70% of Local Sourcing
Suppliers Community ~65,830 Lives Touched through CSR Initiatives
₹ 175.71 Crores Income Tax Paid
25
STAYING ENGAGED WITH

OUR STAKEHOLDERS
The Driving Force Behind Sustainable Success

We regularly consult with our stakeholders, focussing on economic, environmental, and social aspects. These consultations
are crucial for identifying and addressing issues that significantly impact our long-term value creation. By actively involving
stakeholders, we ensure that their perspectives and insights contribute to our decision-making processes, enabling us to deliver
meaningful and sustainable outcomes. We have an organised framework for engaging with stakeholders, guaranteeing timely
exchange of information and interaction to promote transparent communication, and foster strong relationships with our diverse
stakeholders. We proactively gather feedback from stakeholders, using it to enhance our positive influence on their interests and
prioritise engagement with vulnerable and marginalised stakeholder groups, ensuring their development and nurturing resilient
rapport.
Stakeholder
Stakeholder Group Stakeholder Importance
Category
Our Parent Company, ‘Kansai Paint Co., Ltd., Japan’, gives us

Internal Stakeholder technical know-how and Supports Product Development for the
Automotive Business.
Business Partner
They Provide Financial Capital for Business Growth and Help

Internal Stakeholder
Improve Business’ Image.
Shareholder &
Investors
26
Staying Engaged with Our Stakeholders 103rd Annual Report 2023
Purpose and scope of engagement

Frequency of
Channels of Communication including key topics and concerns
Engagement
raised during such engagement
Emails
Board Meetings
Critical Disclosures, Growth Status,
Company Functions
Quarterly Strategy, Market Gaps, Technology
Audits and Review Meets
Assistance
Multi-Stakeholder Platforms (Conferences, Knowledge
Sharing Conclaves)
Board Meetings
Investor / Analyst Meets Financial Disclosures, Business Growth
Annual Report Quarterly Plan, Market Challenges and Coping
Media Updates and Press Releases Strategy
Website
27
Stakeholder
Stakeholder Group Stakeholder Importance
Category
Employee Skills, Knowledge, Experience, and Commitment

Internal Stakeholder
Guide Our Continued Success.
Employees
Our Success and Sustained Business Growth are Defined by

External Stakeholder
Meeting Customer Expectations in the Given Business Cimate.
Customers
They are a Critical Part of Our Value Chain, Enabling Us to Scale

External Stakeholder
Operational Efficiency and Exceed Customer Demands.
Suppliers
Communities Give Us Social Licence to Operate and It is Our

External Stakeholder Responsibility to Uplift and Foster Strong Relationships with
Them.
Community
28
Staying Engaged with Our Stakeholders 103rd Annual Report 2023
Purpose and scope of engagement

Frequency of
Channels of Communication including key topics and concerns
Engagement
raised during such engagement
Review Meetings
Emails
Appraisals (Contest - Nerolac Premier League)
Employee Engagement Surveys
Human Capital Development (UDAAN,
Work Line Portal, Training Programmes, Idea Management
Percipio, Pulse of the Organisation,
Monthly Newsletter ‘Impressions’
Regular Employee Well-Being (Wellness Corner),
Town Hall meeting by MD
Improving Productivity & Morale -
‘Coffee with HR’
SAMVAAD
Suggestion schemes and quality circles
Advanced Business Skills Modules
I Am Nerolac Application
Annual Learning Conference (ALC)
Emails
Meetings
Customer Satisfaction Survey
Multi-Stakeholder Platforms (Conferences, Knowledge New Innovations, Grievance Redressal,
Regular
Sharing Conclaves) Changing Customer Preferences
Digital Initiatives
Corporate Website
Mobile Applications
Emails
Meetings
Supplier Portal
Supplier Audits
Supply Chain Integration, Latest Market
Vendor Development Programmes
Quarterly Innovation, Cost Reduction, Social and
Vendor Performance/Rating
Relationship Capital Development
Multi-stakeholder Platforms
(Conferences, Knowledge Sharing Conclaves)
Joint Value Creation Programme for Cost
Competitiveness
Community Welfare Programmes

CSR, Grievances Redressal, Social and
Community Visits / Meetings Quarterly
Relationship Capital Development
Local Authority and Town Council Meetings
29
MATERIALITY ASSESSMENT
Materiality serves as a crucial tool for identifying key topics that significantly impact both our business performance and the
interests of our stakeholders. Analysis of these material topics helps us define our strategic goals and ambitions, thereby
instituting an effective sustainability framework. Our materiality processes are in line with the Global Reporting Initiative (GRI)
Standards Guidance.
MATERIALITY DETERMINATION PROCESS
Identification &
Assessment of
Material Topics
Prioritisation of
Review of Material Topics
Performance
Set Strategic Goals

Develop and Targets
Action Plan
We conduct sectoral analysis, study industry peers, seek guidance from sustainability standards and frameworks, and based
on our learnings from previous experiences, we identify a comprehensive list of material topics. The identified material topics
are then prioritised based on our engagements with key internal and external stakeholders; and through senior management
interactions. A suitable action plan and mapping of strategic goals and targets are then instituted. The performances against the
set targets are monitored and action plan is revisited as required.
30
Materiality Assessment 103rd Annual Report 2023
MATERIALITY
During the reporting period, we categorised our material topics under 5 broad areas:
Decarbonisation, Resource Use, Quality of Life, Diversity and Governance
Energy Management
Decarbonisation Emission Management
Climate Change
Water Management
Waste Management
Resource Use Product Stewardship
Responsible Product
Sustainable Supply Chain
Human Rights
Occupational Health and Safety
Quality of Life Employee Engagement and Well-being
Community Development
Customer Satisfaction
Gender Diversity
Diversity
Inclusivity
Corporate Governance
Risk Management
Governance
Compliances
Innovation / IP Management
31
Materiality Material Topic GRI Topic Boundary Capitals Impacted
Decarbonsisation Energy GRI 302: Energy

Management
Emissions GRI 305: Emissions

Management
Climate Non-GRI
Change
Resource use Water GRI 303: Water

Management
and Effluents
Waste GRI 306: Waste

Management
Product GRI 416: Customer Health and

Stewardship Safety
Responsible Non-GRI
product
Sustainable GRI 308: Supplier

Supply Chain Environmental Assessment
GRI 414: Supplier Social

Assessment
Diversity Gender GRI 405: Diversity and Equal

Diversity opportunity
Inclusivity GRI 406: Non-discrimination
Internal Financial Capital Intellectual Capital Manufacturing Capital
Social and Relationship

External Natural Capital Human Capital
Capital
32
Materiality Assessment 103rd Annual Report 2023
Materiality Material Topic GRI Topic Boundary Capitals Impacted
Quality of Life Human rights GRI 412: Human Rights
Occupational GRI 403:

Health and Occupational Health and
Safety Safety
Employee GRI 401: Employment

Engagement GRI 404:Training and
and Well-being Education
Community GRI 413 - Communities

Development
Customer Non-GRI
Satisfaction
Governance Corporate GRI 102: General Disclosures

Governance
Risk GRI 102: General Disclosures

Management
Compliances GRI 307: Environmental

Compliance
GRI 419: Socio-economic
Compliance
Innovation / IP Non-GRI
Management
Internal Financial Capital Intellectual Capital Manufacturing Capital
Social and Relationship

External Natural Capital Human Capital
Capital
33
OPPORTUNITIES & THREATS

At KNPL, we define an opportunity as a set of circumstances with an uncertain outcome, compelling the need of resources. The
paint industry faces numerous threats, some of which are volatile and unpredictable, necessitating agile decision-making and
effective strategies that mitigate exposure and harness the available opportunities.
OPPORTUNITIES
Increasing focus on home renovation and décor
Booming preference for services

Consumer Rising inclination for personal mobility
Trends
Escalating demand for luxury
Growing awareness of functionalities and sustainability
Policy The Government’s thrust on infrastructure and rural

Support Development of smart cities and housing for all
Digital presence and branding through social media
Digital Digitisation of operations
Stakeholder engagement
Transition to a low carbon economy

Environment,
Social and Inclusivity and diversity
Governance New regulations
Per Capita Per capita Paint consumption in India is low as compared

Consumption to developing countries
34
Opportunities & Threats 103rd Annual Report 2023
Niche products in the form of specialty coatings

Specialty represent an opportunity for the Company to leverage its
Niches technical strength
Expanding presence in new opportunity areas with

New Market massive growth potential, such as construction chemicals,
Sectors adhesives, coil coatings, and health & hygiene
THREATS
Global warming
Climate Change Unpredictability of the monsoon in India and change in
/ Unpredictable rainfall pattern
Monsoon
Water scarcity
Geopolitical Geopolitical situations, leading to disruptions
New Competition New competitors are entering the market
Financial Volatility inxchange rates
Data loss / thefts
Domain-based threats
Cyber-Security
Hacktivism
Site non-availability
35
RISKS AND CONCERNS

OUR APPROACH
KNPL’s well-documented risk policy, supported by a robust risk management framework, helps it effectively navigate
uncertainties and maintain high performance.
RISK MANAGEMENT FRAMEWORK:
Identification of Analyzing Risks Treating and Reporting of Risks, Promoting Risk

Risks Monitoring Risks Exposures, and Culture
Evaluating the
Mitigation Plans to
Assessing the entire risks based on Formulating Training and
the Audit Committee
business landscape, their probability comprehensive awareness of
both internal and of occurrence courses of action to The Risk risks, controls, and
external, to identify and impact on the effectively manage Management mitigation plans.
potential risks. organisation and the key risks. Committee presents
further classifying Operating teams the annual report on
them into high, are responsible for risks, exposures, and
medium, and low risk executing these mitigation plans to
categories. plans. the Audit Committee.
The Risk
Management
Committee
convenes at least
two meetings
annually in
compliance with
applicable statutory
regulations.
36
Risks and Concerns 103rd Annual Report 2023
RISK CLASSIFICATION:
Type of Risks
Strategic Risk Financial Risk Operational Risk Statutory Risk System Risk
Strategic risk Risks arising Risks related to With its increased With the increasing
applies to the from currency the procurement, geographical utilisation of
Company’s future fluctuations and manufacturing, spread, KNPL IT within the
business plans market volatility, distribution, sales, is exposed organisation
and strategies, which can directly and service of the to multitudes for business
including industry- impact profitability. product in business of constantly operations, the
and sector-related operations. It also changing local necessity of
risks. This also includes operational, legislations. There having critical
includes risks sustainability, exists a risk of controls, including
arising due to and people risks, non-compliance but not limited to
climate change. including but not or delay in information and
limited to the code of compliance cyber security,
conduct. with statutory within the system
requirements. becomes extremely
crucial.
37
EMERGING RISKS:
KNPL had identified several emerging risks, as below:
Emerging Risk Classification Description Impact Mitigation
Physical risks Stoppage of business Business continuity plan

related to operations policy and framework
extreme weather available
Deteriorating brand
events, such as
Risk arising Strategic Risk value and customer Product
flash flooding,
due to climate trust
incremental sea Develop sustainable
change
level rise, storm Increased cost due products
surge, and high to shift to low carbon
Green product certification
precipitations. technology
Emissions & Climate change
Transitional climate
change risks Committed to SBTi
such as market Adapted TCFD framework
reputation and
Set targets for minimising
technology risk.
carbon footprint
Change in regulatory Legal and regulatory Dashboard to track

landscape impacting consequences due to upcoming regulations
various areas, such non-compliance with
IT-enabled system to track
as rules
Risks arising Statutory Risk compliance
due to Plastic waste Reputational damage
emerging ESG management
regulations Chemical safety
within the management
country
Availability of water Disruption in Reduce specific water

production due to consumption
insufficient water
Usage of recycled water
supply
Risk due to Operational
Increase water regeneration
water scarcity Risk Higher costs of water
through rainwater
supply
harvesting
Conducting regular water

audits and assessments
38
Nurturing Our Capital and ESG Approach 103rd Annual Report 2023
NURTURING OUR CAPITAL

AND ESG APPROACH
At KNPL, we follow a triple bottomline (3P: People, Planet and Profit) approach and judiciously manage the six capitals (Natural,
Human, Financial, Manufactured, Intellectual and Social & Relationship) to achieve our strategic objectives. As a responsible
corporate citizen, we have mapped our capitals to the relevant United Nations Sustainable Development Goals (UN SDGs).
NATURAL CAPITAL
FINANCIAL CAPITAL
MANUFACTURING CAPITAL
SOCIAL AND RELATIONSHIP CAPITAL
HUMAN CAPITAL
39
ESG APPROACH
OUR APPROACH:
At KNPL, we have a well-established OHS&E policy and framework. The management structure comprises a committee to set
the strategic direction for ESG efforts and review ESG performance.
The ESG framework covers our key focus areas and performance indicators under each materiality. The same is provided under
Materiality chapter. Detailed information on framework is accessible at our website: www.nerolac.com.
40
PROGRESS ON OUR MATERIALITY
ENVIRONMENTAL - REDUCING OUR ENVIRONMENTAL

IMPACT & SOURCING SUSTAINABLY
DECARBONISATION – Materiality 1
APPROACH: COMMITMENT:
Increase the contribution of energy from renewable RE 70 (70% electricity from renewable source) by 2030
sources carbon neutrality
Adopt targets in line with the Science-Based Target Reduce Specific Power Consumption
initiative (SBTi)
Undertake risk assessment as per the Task Force on

Climate-related Financial Disclosures (TCFD) framework
Reduce Specific Power Consumption (SPC)
Green Belt Development
Initiatives undertaken and performance are provided in the

Natural Capital of our Annual Report.
RESOURCE USE – Materiality 2
Reduce our water footprint by increasing water efficiency, Being water positive by FY 2024-25
rainwater, and recycled water consumption within our
Divert waste away from landfill
operations
Increase sustainable product portfolio
Improving water availability in the communities where we
operate through watershed development projects
Co-processing of waste across all plants
Incremental Specific Water Consumption (SWC) and

Specific Hazardous Waste Generation (SHWG) reduction
targets
Leveraging our R&D strength to develop green,

sustainable, and responsible products
Initiatives undertaken and performance are provided in the

Natural Capital section of our Annual Report.
41
SOCIAL - EMPOWERING
PEOPLE & COMMUNITIES
QUALITY OF LIFE – Materiality 3
COMMITMENT:
APPROACH:
Zero human rights abuse
Community development
Zero incident-accident
Promote equality
Foster behavioural-based safety culture
Employee engagement
Advocate human rights PROGRESS:
Robust Code of Conduct Conducted ESG trainings on BRSR 9 principles for our
employees and value chain partners
Dedicated Internal Complaints Committee (IC)
Zero incident/accident across our manufacturing plants in
Foster safe and healthy working conditions
FY 2022-23
Initiatives undertaken and performance are provided in the Human

Capital and Social and Relationship Capital of our Annual report.
DIVERSITY – Materiality 4
Fostering diversity and nurturing inclusivity by Achieve 2.5% gender diversity by Mar’24
promoting advancement for our colleagues, culture, and
Achieve 0.25% for differently-abled by Mar’24
communities
Ensuring no discrimination on the basis of gender, race,

age, religion, and ethnicity
Initiatives undertaken and performance are provided in the Human

Capital and Social and Relationship Capital of our Annual Report.
42
GOVERNANCE - EMPOWERING
PEOPLE & COMMUNITIES
GOVERNANCE - Materiality 5
Enterprise risk management Zero non-compliances
Board oversight Reduce enterprise risk
Statutory compliances
Fair practices across value-chain
PROGRESS:
Enterprise Risk Management - integrated climate risks into enterprise risk management framework
Board oversight and review
Continuing best practices, such as meeting statutory compliances and fair practices across value-chain
RECOGNITION
Rated in the top 10% globally within the Chemical Industry
Group in the S&P ESG Index in CSA 2022
Featured in the Leadership Category, and among the top

14 out of 575+ companies, and rated #1 in the Paint Sector
Rated in the Top Quartile in FTSE4Good Index
ASSURANCE
Our disclosures on key ESG parameters are independently
assured by a third-party external agency (M/s Aneja
Associates) based on the International Standard on
Assurance Engagement (ISAE) 3000. Additionally, assurance
has been given about the disclosures’ adherence to the
GRI’s Sustainability Reporting Standards.
The assurance report can be accessed at our sustainability

web-link: https://www.nerolac.com/sustainability.html
43
44
Natural Capital 103rd Annual Report 2023
NATURAL
CAPITAL
Kansai Nerolac Paints Limited,
recognises the importance of protecting
the environment. As a leading and
trustworthy paint manufacturer, we know
the environmental risks of using natural
resources. And so, we are consciously
taking steps to reduce our environmental
impact. Our steady and tenacious efforts
in natural resources, emissions, and waste
management have enabled us to emerge
better than ever in environmental protection.
By implementing environmentally friendly
practices, the Company is helping ensure a
sustainable future for both its business and
the planet.
45
BACKDROP
The growing disparity between Impact on SDGs

supply and demand for natural
resources and a recent supply-
chain crisis has drawn our
attention to the significance of
adaptability. Carbon dioxide,
methane, and nitrous oxide
concentrations in the atmosphere
have all risen to record highs
today. We recognise pollution of
the environment and failure to
mitigate climate change as one
of the most serious threats to the
ecosystem, community health,
Response
and societal welfare. Our constant
Our primary goals are implementing innovative
aim is to make investments advancements, effective waste management, smart
in reliable, cost-effective, and distribution of resources, and other measures. We maintain
our environmental performance by implementing stringent
clean processes or technologies quality systems such as ISO 14001, standard operating
for environmental protection. procedures, and process controls across all plants. We
recognise possible risks, progressively mitigate them with
We ensure that efficiency and adaptive methods and strategic actions, and endeavour
integrity are crucial whilst also to achieve effectiveness in our environmental protection
measures.
maintaining a consistent pace of
transition.
46
Focus of our response
MATERIAL WATER
MANAGEMENT MANAGEMENT
Sustainable Sourcing Water conservation by recycle & reuse

of water
Quality Raw Material Procurement
Reduce Specific Water Consumption
Increase Resource Efficiency
(SWC) by reducing freshwater
consumption
Increase usage of rainwater in the
process
ENERGY
MANAGEMENT
WASTE
Energy efficient operations across facilities through
varied ENCON initiatives
MANAGEMENT
Maximising our renewable portfolio in our total
energy consumption Sustainable Packaging
Reduce Specific Hazardous Waste
Generation (SHWG) by reducing process
waste generation
Divert waste away from the landfill
CLIMATE CHANGE ZERO liquid discharge
MANAGEMENT AND
EMISSION MANAGEMENT
GREENBELT
Commitment to Science-Based Target initiative
(SBTi) DEVELOPMENT
Taskforce on Climate-related Financial Greenbelt development within factory
Disclosures (TCFD) premises as well as in nearby communities.
GHG emissions reporting
Improved air quality
ENSURING
ENVIRONMENTAL
COMPLIANCE
47
MATERIAL MANAGEMENT
As part of the paint manufacturing industry, our major input This helps KNPL in gaining following benefits:
raw materials comprise pigments, binders, additives, and Reducting our environmental footprint by selecting
solvents. We consciously use these materials and embrace suppliers who prioritise resource efficiency, waste
resource efficiency. We continuously strive to reduce our reduction, and renewable materials
material losses and achieve the conversion of raw materials
into finished goods to the maximum extent. Fostering transparency and accountability throughout the
supply chain
Encouraging other suppliers to adopt sustainable

Responsible sourcing practices by demonstrating the demand for sustainable
(Or sustainable sourcing) materials and products
KNPL recognises the critical importance of responsible

sourcing as a fundamental pillar of its sustainability strategy.
With a deep commitment to environmental stewardship
and social responsibility, KNPL actively seeks to sustainably
source goods and services that align with its values and
support the well-being of both people and the planet. KNPL’s
green procurement guidelines prioritise environmentally
friendly and energy-efficient products, materials, and services.
By giving preference to suppliers who offer eco-friendly
alternatives, KNPL aims to minimise the environmental impact
associated with its operations and aligning its sourcing
practices with its environmental goals.
Thrust Area
SUSTAINABLE
SOURCING
To minimize environmental impact and promote

social responsibility
Collaboration with industry partners to drive
innovation and develop sustainable sourcing
practices that align with our goals and industry
best practices.
Performance
Over 65% of our materials are sourced from suppliers with a
formal sustainability programme. By partnering with suppliers
who have established sustainability programmes, KNPL
ensures that the materials used in its operations are sourced
in a manner that aligns with its sustainability objectives.
48
Increase Resource Efficiency During the reporting period, we reclaimed, recycled

or reused the below material reducing carbon
Thrust Area footprint:
16.33 MT
RESOURCE
EFFICIENCY
of TiO2
Process automation for improved accuracy and
reduced material loss
344 MT
Close-loop manufacturing process
Robust controls on material additions
Adoption/promotion of various reuse and
recovery initiatives of solvent
169 MT
Performance
Packing Materials
In FY 2022-23, we consumed 30,847 MT of packing material,

including metal tins, drums, plastic barrels, containers, and of powder fines
plastic bags. At present, we have initiated using recycled
plastic in our plastic containers for specific products. Going
113 MT
forward, we intend to increase the content of recycled
materials in our packaging and extend to other range of
products as well. We work closely with our value chain
partners to meet the common goal and drive sustainable of paint sludge
packaging.
49
ENERGY MANAGEMENT
KNPL recognises the importance of energy efficiency
enhancement and sustainable energy practices. Thus
proactively undertaking a range of initiatives to optimise
energy usage and transition to environmentally friendly and
cost-effective alternatives.
Energy efficient operations

across facilities through varied
ENCON initiatives
KNPL embraces a multifaceted approach to energy
efficiency, leveraging innovative technologies and process
improvements to drive energy-saving measures. By
investing in energy-efficient equipment and systems, KNPL
reduces energy consumption while maintaining operational
effectiveness.
Thrust Area
ENERGY EFFICIENCY
ENHANCEMENT
Adoption of measures to reduce energy

consumption and augment per watt productivity
Reduce Energy Intensity - Specific Fuel
Consumption (SFC) and Specific Power
Consumption (SPC)
Approach:
At KNPL, energy management progress is measured using
key performance indicators (KPIs) such as specific power
consumption, specific fuel consumption, Green Power
capacity addition, percentage of Green Power utilization,
power factor controls, fuel mapping, and adoption of
greener alternatives. These metrics help track and evaluate
the advancements made in optimizing energy usage and
transitioning to more sustainable energy sources.
50
Performance
In FY 2022-23, we consumed 5,00,744 GJ of energy within the organisation while our overall energy intensity was 1.34 GJ/ KL
of FG.
Method of Calculation:
Energy Intensity is ratio of Total Energy (Fuel + Power + Heat and Steam) consumed within factory premises,
organisation-wide (Manufacturing facilities, R&D centre, Depots and Head Office) to Total Production of Finished
Goods during a specified period.
185 184 180 171 186 50 46 48 49 47
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Our Specific Power Consumption increased by 0.54% since Our Specific Fuel Consumption has decreased by 6% since
2018-19, due to increased industrial volume contribution FY 2018-19
Method of Calculation: Method of Calculation:
Specific Power Consumption is ratio of Electricity Specific Fuel Consumption is ratio of Fuel
Consumed (from all sources) at Plants to Total Consumption in Boilers at Plants to Total Resin
Production of Finished Goods during Specified Period. Production during a Specified Period.
Electricity consumption is sum of electricity received
from grid (i.e. state electricity board), electricity
generated from DG set and electricity from renewable
energy sources at respective manufacturing facilities.
51
Energy is also used in the form of steam and heat in our manufacturing processes. Most of the steam and heat requirements are
being met through biofuel and biomass-based solid fuel boilers.
Maximising Our Renewable Portfolio in Our Total Energy Consumption
19,347 MT 1,97,213.6 Lakhs Kcal

Total steam consumption Total heat consumption
Maximising our renewable portfolio in our total energy consumption

KNPL actively explores and adopts environmentally friendly options like renewable energy sources like solar and wind power.
By integrating renewable energy into its operations, KNPL decreases its reliance on fossil fuels and contributes to the overall
decarbonisation of the energy sector.
Thrust Area
DIVERSIFICATION OF ENERGY-MIX
Increasing renewable portfolio – Solar and Wind power

Transitioning to cost-effective and environment-friendly cleaner fuels
Sustaining our consumption of heat and steam through biofuels and biomass-based boiler
Approach:
We constantly search for alternate sources to increase our share of green energy and accordingly plan our initiatives based
on feasibility and applicability. This, in turn, allows our facilities to be increasingly self-reliant in their energy needs and thereby
reduce the carbon footprint.
Performance
In FY 2022-23, the total renewable energy consumed was 2,43,398 GJ, accounting for 49% of our total energy consumption.
% of Electricity from Renewable Sources - % of Process Heat & Steam from Renewable
Manufacturing Facilities Source - Manufacturing Facilities
19 23 30 31 30 92 98 98 100 100
Our absolute Renewable Power has increased from 185.4 Lac units in FY 21-22 to 205.7 Lac units in FY22-23, which is 11%
increase over last year. There is a marginal dip in Renewable power percentage in FY 22-23 on account of change in product
mix and commissioning of Intermediates viz. Resin at Sayakha and in-house Emulsion at Goindwal.
52
During the reporting period, the following Carbon Way Forward

Neutrality projects were commissioned, enabling us to
Energy Efficiency enhancement
further increase our green power footprint in the overall
energy mix. Going ahead, we have an action plan in place for energy
efficiency improvement:
2 captive wind turbines of 2.1 MW each, at Hosur & Lote
Full-fledged implementation of EMS at Hosur was
Rooftop solar panel installed at Jainpur and Bawal
completed in FY 2022-23. Going forward, horizontal
Solar power sourcing through group captive route at deployment of EMS implementation is planned at
Jainpur, power purchase and shareholding agreements Jainpur and Bawal.
signed with the third party
Introduction of new technologies
Wind power sourcing through the third party
Incorporation of new age additive in diesel consuming
forklifts for optimizing the fuel consumption by
enhancing fuel effficiency and better combustion.
Energy Management system at Hosur
Implementation of new age product for use in chillers
Energy cost is a major contributor in an overall for cooling efficiency enhancement by lubricity
operating cost of a manufacturing plant. For improvement, reduced fouling and reduction in
optimal operations, it is essential to monitor, track compressor runtime.
and analyse real-time energy consumption data of
Installation of an intelligent air flow controller to optimise the
equipment. Monitoring and trending of the data
compressor load by reducing artificial demand through the
helps identify opportunities for optimising the
air demand management system.
consumption and save upon energy costs.
In line with this objective, full fledged Diversification of energy-mix

implementation of energy management system
Solar Capacity augmentation
was undertaken at our Hosur facility. EMS software
is a key component in any power monitoring Exploring installation of greenfield solar capacity to meet
and energy efficiency strategy, which helps in power demand across factories.
delivering intelligence required to get the most Installation of new technology - ‘Solar tree’ - across
out of energy management across the plants. locations, which consumes lesser space and can be put
Through this initiative, we have already achieved up in open spaces.
energy cost reduction of ₹7 Lakhs and further aim
to achieve a cost savings of ₹19 Lakhs. Captive Wind Power augmentation
Installation of 2.1 MW capacity wind turbine at Sayakha to

meet power requirements and increase our renewable
footprint.
By FY 2023-24, we aim to source 41% of our total power

consumption through renewable energy sources.
OUR COMMITMENT
Achieve 70% of renewable contribution

in our overall power mix by 2030
Solar Energy - Sayakha Plant
53
CLIMATE CHANGE MANAGEMENT AND EMISSION MANAGEMENT
The increasingly severe effects of climate change, such The focus is on reducing both direct and indirect greenhouse
as flash floods, rising sea levels, storm surges, and heavy gas (GHG) emissions. It involves assessing and addressing
precipitation, have highlighted the urgency of taking action emissions from KNPL’s direct operations and indirect sources,
for the continuity of business operations. These extreme such as the procurement of raw materials, transportation,
weather events pose immediate threats and have far-reaching and product use, thus ensuring a comprehensive approach
implications for resource availability, including the emergence towards creating a more sustainable future.
of water scarcity risks. In response to these threats, KNPL has
recognised the necessity of proactive measures and has
made a commitment as a responsible entity.
One of the key steps taken by KNPL is the strategic shift

towards renewable energy sources, specifically wind
and solar power. This transition is aimed at reducing the
Company’s carbon footprint and ensuring a more sustainable
and environmentally friendly energy supply. By embracing
renewables, KNPL is actively contributing to global efforts
to combat climate change and minimising the environmental
impact of its operations.
Commitment to Science Based Target

Imitative (SBTi)
Task Force on Climate Related Financial
KNPL has committed to setting near-term science-based
disclosures (TCFD)
targets in-line with SBTi guidelines. By committing to these
targets, KNPL has aligned its emission reduction goals with KNPL has taken a proactive step in managing climate-related
the latest climate science and international efforts to limit risks and opportunities by adopting the TCFD framework.
global warming. This commitment requires KNPL to implement By implementing this framework, KNPL seeks to enhance
strategic measures throughout its value chain, including its decision-making processes, improve risk management
suppliers, distribution channels, and other stakeholders, to strategies, and seize opportunities from transitioning to a low-
reduce GHG emissions. carbon economy.
Through the TCFD framework, KNPL has evaluated and

quantified various climate-related aspects, such as physical
risks (e.g., extreme weather events, sea-level rise), transitional
risks (e.g., policy changes, shifts in market preferences), and
opportunities (e.g., renewable energy investments, energy
efficiency improvements). This comprehensive assessment
allows KNPL to better understand the financial implications
and potential impacts on its operations, supply chain, and
overall business strategy.
KNPL effectively integrated climate considerations with

Enterprise Risk Management by financially quantifying
climate-related risks and opportunities. This has enabled the
Company to align its business strategy with the transition
to a low-carbon and sustainable future, mitigating risks
and capturing opportunities that arise from climate-related
changes.
54
GHG Emissions reporting

KNPL recognises the significance of measuring and disclosing its greenhouse gas (GHG) emissions to manage and reduce its
carbon footprint effectively. We follow Greenhouse Gas Protocol, an internationally recognised reporting framework, to ensure
consistency and comparability in our emission reporting. The GHG emissions data is collected systematically from various
sources within our operations, including direct emissions from combustion processes and indirect emissions from purchased
electricity and other energy sources.
Thrust Area
GHG EMISSION REDUCTION
Increasing renewable portfolio – Solar and Wind power, Cleaner Fuels

Detailed greenhouse gases (GHG) inventorisation and setting up FY 2018-19 as baseline year
Establish GHG reduction targets in line with Science Based Target initiatives
Consistent tracking and monitoring of our GHG emissions through a customised GHG accounting tool
Approach:
To ensure accuracy and reliability, KNPL engaged
with experts to validate the collected data and
calculate the Scope 1, 2 and 3 emissions. These
measures ensure the reported GHG emissions
reflect the most accurate and up-to-date
information. KNPL goes beyond basic emission
reporting requirements by analysing the collected
data to identify emission hotspots and areas for
improvement. This analysis helps the Company
develop targeted strategies and initiatives to reduce
emissions and enhance overall environmental
performance.
The GHG emissions are estimated based on

guidelines defined in the World Resource Institute’s
(WRI) Greenhouse Gas (GHG) Protocol, CEA
(Central Electrical Authority) database and GaBi
Database. Relevant industry-standard emission
factors and emission factors prescribed by the
Intergovernmental Panel on Climate Change (IPCC)
have also been used appropriately to determine.
55
Types of GHG Emissions

Activities
accounted
Scope 1 GHG Emissions: Captive power generation from DG

Direct GHG emissions HSD consumption in boilers
Scope 2 GHG Emissions:

Power imported from the grid
Indirect GHG emissions
Category 1: Purchased Goods and Services

Category 2: Capital Goods
Category 3: Fuel- and Energy-Related Activities (not included in Scope 1 or Scope 2)
Category 4: Upstream Transportation and Distribution
Category 5: Waste Generated in Operations
Scope 3 GHG Emissions: Category 6: Business Travel
Category 7: Employee Commuting
Category 8: Upstream Leased Assets
Category 9: Downstream Transportation and Distribution
Category 10: Processing of Sold Products
Category 11: Use of Sold Products
Performance:
Our GHG Emission Intensity (Scope 1 + Scope 2) decreased by 7.9% since FY 2018-19.
During the year, we had inventorised our Scope 1,2 and 3 GHG emissions. Our boundary includes KNPL’s 8 manufacturing
locations in India, it’s R&D centre, Offices, and depots. Moreover, it also includes GHG emissions from its OPCs, domestic as well
as International subsidiaries.
KNPL organisation wide (8 plants, HO, R&D and depots) emissions are disclosed in BRSR under principle 6.
TCO2Eq. FY 2022-23 FY 2021-22 FY 2020-21 FY 2019-20 FY 2018-19
Overall Scope 1
8,736 7,023 3,910 4,141 7,193
emissions*
Overall Scope 2
45,463 41,860 33,612 45,801 51,666
emissions
Overall Scope 1+2
54,199 48,883 37,522 49,942 58,859
Emissions
Overall Scope 3
17,24,317 15,74,193 13,94,657 14,17,590 16,16,553
Emissions
Scope 1 Emissions* This includes biogenic emissions.
The above figures are subject to change post-validation from Science-Based Target Initiative (SBTi)
GHG Emission Intensity is the ratio of GHG emissions (Scope 1 + Scope 2) to Total Production of Finished Goods during a
specified period.
56
Air Quality Performance:

KNPL recognises the importance of clean air for the health 100
and well-being of its employees, local communities, and the 80 80
environment. Thus placing significant emphasis on maintain- 64
60
ing and improving air quality in its operations.
31
20
Thrust Area 13
IMPROVED AIR
QUALITY SOx NOx PM2.5 PM10
Statutoty Limit FY 2022-23
Diligent monitoring – Ambient air quality, stack

emissions, VOC levels Way Forward
Deployment of advanced air pollution control
Our organisation has demonstrated a strong commitment
devices
to reducing our environmental impact and promoting
sustainability throughout the year. We have committed to
setting near-term targets in line with the Science Based
Target Initiative (SBTi) recommendations and are developing
a carbon neutrality roadmap.
Approach:
To achieve our goals, we have taken a comprehensive
External agencies periodically monitor the emissions and
approach to emission reduction, including inventorising our
air quality levels. All our manufacturing sites have requisite
emissions throughout our operations, including Scope 1, 2,
controls and measures in place to manage these emissions
and 3. Through this effort, we have gained valuable insights
and ensure the levels are well within the prescribed limits. We
into our carbon footprint and identified areas to improve our
ensure compliance with limits recommended in the National
performance in reducing emissions.
Ambient Air Quality Standards (NAAQS) 2009.
Our efforts are driven by a deep sense of responsibility to
In addition to conventional air pollution control devices like
minimise the impact of climate change and create a more
Air Handling Units (AHUs), Dust Collectors, Fume Extractors,
sustainable future for generations to come. We remain
and Forced Draft Ventilation systems, we have also installed
dedicated to continuing our work in this area and pursuing
Scrubbers in the resin area and Cyclone Separators in solid
innovative solutions to reduce our environmental impact.
fuel boilers to reduce Suspended Particulate Matter (SPM).
Our vents are equipped with an Activated Carbon Filter
to filter air emissions before discharge into the ambient
atmosphere.
For continuous monitoring, online stack monitoring systems

are provided to ensure compliance with permissible limits.
57
WATER AND WASTEWATER MANAGEMENT
As the physiological consequences of climate change affect

food and water resources, emerging economies are facing Freshwater Source
multi-resource crisis factors. These include population
growth, improved standards of living, and the escalating Third-party water
demand for water due to the effects of climate change, as Groundwater
well as multilateral instabilities in trade, political situations, or
economic growth. According to global risks estimation, the 18%
gap between water demand & supply could be 40% by 2030, 28%
with a dramatic and unequal increase in demand across
countries.
Water plays a crucial role in our water-based paint formulations

and is also utilised for various purposes such as washing,
gardening, utilities, and household activities. We adopt water
conservation and efficient usage practices in our operations.
54%
SIDC water
Thrust Area
REDUCE FRESHWATER
CONSUMPTION
At KNPL, we believe that responsible water management is Diligent monitoring of freshwater consumed
a collaborative effort that requires ongoing commitment and
Adoption of sustainable water management
continuous improvement. That’s why we have implemented measures to limit our water footprint
water conservation initiatives across all our locations and are
Increase usage of recycled water and rainwater
constantly refining our practices to maximise our impact.
through water management projects and
By sharing best practices and collaborating across initiatives within our operational limits
departments and locations, we have achieved significant Periodic review of water-related risks
water savings and minimising our environmental impact. We
remain committed to this collaborative approach and will
continue to pursue innovative solutions and best practices
to conserve water and promote sustainability.
Approach:
We fulfil our freshwater requirements through groundwater,
Regarding water management, we continue to adopt water
State Industrial Development Corporation (SIDC) and third-
conservation initiatives within our operations and ensure
party water supply.
horizontal deployment across all our facilities based on
feasibility. We continuously target reducing our specific
58
water consumption (freshwater) by 5% per year for gradual For effluent management, we adopt a two-pronged strategy
improvement. We continuously measure and track our – reduction at source and reuse. Our major manufacturing
freshwater withdrawal and total water consumption through facilities are ZERO Liquid Discharge (ZLD) facilities. We have
a water accounting tool. This helps us improve our water dedicated treatment facilities for domestic and industrial
efficiency and set internal and external benchmarks to effluents and an in-house laboratory to monitor the quality
achieve the highest level of water security. of effluent across all our major manufacturing facilities. Our
ETP-treated water is reused for utility makeup while the STP-
Key Water Conservation Initiatives treated water is reused for gardening and toilet flushing.
Internal water audit practice to identify areas of
improvement.
Process condensate collection and reuse
Performance:
Usage of anti-corrosion and anti-scalent agents in
cooling tower Water withdrawal
Horizontal deployment of faucet-type and sensor-based In FY 2022-23, our figure for organisation-wide water
taps withdrawal stood at 4,31,924 KL.
Waterless urinal at our manufacturing plant
Water Replenishment:
We replenished 100% of
freshwater withdrawal to the
community we operate in.
Hosur Effluent Treatment Plant - Zero Liquid

Discharge
To ensure responsible water management, regular audits Water Consumption
are a crucial part of our approach, helping us monitor and
Our organisation-wide total water consumption for the re-
evaluate our water conservation initiatives and identifying
porting period was 5,73,465 KL, of which 12,014 KL was
areas for improvement. As part of our ongoing efforts, we
rainwater while 1,29,527 KL was recycled water. Our organi-
conducted a detailed water audit at our Lote facility. Going
sation-wide Specific Water Consumption (SWC) was 1.16 KL/
forward we will be conducting such internal audits for all our
KL of FG while the same for our manufacturing facilities ac-
major manufacturing facilities.
counted for 1.14 KL/KL of FG.
In FY 22-23, we continued to use rainwater within our factory
premises for the process as well as other non-process
use at Lote, Hosur, and Goindwal. Aligning to our water
management goals, we are also increasing the rainwater
usage within our operational bounds at other locations.
59
Our recycled water consumption is 23% of the total Water discharge:

water consumption for reporting year
We have ZLD across our major manufacturing facilities. Our
Specific Water Consumption - Manufacturing Facilities total wastewater discharge for the reporting period was 463
KL from our newly merged facilities.
KL / KL of FG
1.58 1.4 1.25 1.16 1.14

Water Management in Water Stressed region
2 of our manufacturing facilities are located at

Goindwal Sahib and Bawal - both of which are
identified as water-stressed areas.
In FY 2022-23, at our Goindwal Sahib & Bawal

facilities
Water withdrawal (freshwater) stood at – 121027

KL
FY19 FY20 FY21 FY22 FY23
Water consumption stood at – 1,50,606 KL
Water recycled - 17.6%

Our Specific Water Consumption (Manufacturing Facilities)
has decreased by 28% since FY 2018-19 Specific water consumption (SWC) (freshwater)
was – 1.29 KL/KL of FG
Ensured Zero Liquid Discharge

Manufacturing Facilities - Specific Water Consumption is

ratio Of Fresh Water Consumed in Plants to Production
of Finished Goods during a specified period.
Organisation-wide - Specific Water Consumption is ratio

of Fresh Water Consumed Organisation-Wide (Plants +
R&D centre + Head Office) to Production of Finished
Rain Water Usage in Process (KL) - Manufacturing

Facilities
8,574 10,361 7,800 8,659 12,041
60
Thrust Area
Case Study:
Pond restoration at Aakot Village at Bharuch, Gujarat:
We have adopted a rural pond as part of the Gujarat

WATER RESTORATION Government’s ‘Sujalam-Sufalam’ programme for pond
rehabilitation and increased rainfall recharge. We carried
out deepening and desilting activities to improve the water
Water replenishment through watershed body’s water storage capacity. We built a protective wall
development projects in the areas we operate in around the pond, consequently improving the supply of
under CSR water to adjacent communities for agricultural purposes.
This could increase natural water percolation, increasing the
groundwater level as well. Additionally, we planted 150 trees
in the area around the ponds. Through these projects, over
1,200 people in nearby villages are expected to be benefited.
Performance:
The pond restoration projects undertaken at Sayakha, Jainpur,
Way Forward
and Hosur during FY 2022-23 aimed to create water-positive
solutions and enhance the overall water management We would continue to work in the following key areas: Reduce
systems in these areas. These projects were designed to freshwater consumption; increase usage of recycled/reused
address water scarcity issues, promote sustainable water water; increase usage of rainwater in the process; water
usage, and improve the ecological balance of the respective replenishment in nearby villages through CSR to stay in tune
regions. with our commitment and achieve our water-positive target.
Before: After:
OUR COMMITMENT
to be Water Positive by
FY 2024-25
61
WASTE MANAGEMENT
Conscious waste management has become pivotal for every business as it impacts the ecology and has a hit on business growth
due to its management cost. We realise that our operations generate a significant quantity of hazardous and non-hazardous
waste; therefore, we adopt industry best practices and set challenging goals for effective waste management.
JUDICIOUS WASTE MANAGEMENT
Dedicated storage for category-wise waste in scrap yard across all plants
Systematic tracking of the quantity of waste generated and waste disposed
Ensure proper waste disposal – diverting waste away from landfill
Imbibing the principle of 3R – Reduce, Reuse and Recycle
Sensitisation of employees on waste handling methods
Approach:
We believe the best way to reinforce judicious waste management is to reduce waste generation at source, reuse and recycle
to the maximum extent. During the reporting period, we undertook several initiatives for waste minimisation and the diversion of
waste away from landfill.
REDUCE
Material Wastage
Large production Batch-size
Improved accuracy and stringent controls on material addition
Closed loof manufacturing process
Sticking Material Losses

Procurement of bulk liquid chemicals in tankers instead of barrels, and further stroked in tanks

Nitrogen purging in resin area
Reduce Cleaning Frequency

Product changeover minimization
Same shade scheduling inline through advance Planning

Other measures
Solvent Recovery Units
Eliminated entire pretreatment operation by developing suitable coating system for barrel Industry

62
REUSE
Reusable cartridge in the filtration process
Cleaning solvents of all major resins are reused in the next batch of same resins
In paint section, system controls have been implemented to ensure reuse of paint filled in part filled cans in the
next compatible batch of paint
In operations, cleaning solvent is reused after distillation process again for equipment cleaning
Paint Pigging wash water reuse
TIO2 recovery through de-dusting
Drums and barrels
Take-back mechanism with suppliers supplying raw materials in plastic bags
RECYCLE
Barrels/Tins are recycled through authorised vendors
Plastic waste, corruggated boxes and metal scrap generated within factory premises is recycled through
authorised vendors
E-waste is sent to authorized vendors for recycle
As a sustainability objective, we take an incremental target of a 5% reduction of our Specific Hazardous Waste Generation
(SHWG) year-on-year.
Waste Management Facility at our plants
63
Performance: Waste Disposal:

Waste Generation: At KNPL, waste is separated and then sent to authorised
Treatment, Storage, and Disposal Facilities (TSDFs) for
In FY 2022-23, KNPL generated 7441 MT of waste, of which
disposal, reuse, or recycling in accordance with applicable
919 MT was hazardous waste, 4.72 MT was e-waste, 0.07
laws and regulations. Through the implementation of co-
MT was bio-medical waste, 1479.3 MT was contaminated
processing of hazardous waste to cement kilns, we have
containers waste (barrels, tins, drums), and the balance was
been successful in diverting the majority of our waste from
non-hazardous waste.
landfill.
We were able to turn 13.24 MT of high-quality manure, which

Specific Hazardous Waste Generation - Manufacturing was utilised internally for gardens and horticulture, from 24.55
Facilities Kg / KL of FG MT of organic canteen and food waste by bio composting
treatment process.
2.71 2.7 2.47 2.3 2.47
This has not only improved how we handle organic waste
but also helped us cut carbon emissions, lessen methane
production, and divert garbage from landfills.
Our Specific Hazardous Waste Generation (SHWG) was 2.47

Kg/KL of FG for our manufacturing facilities.
Manufacturing Facilities - Specific Hazardous Waste

Generation is the ratio of Hazardous Waste Generated
in Plants to the Production of Finished Goods during a
specified period.
Organisation-wide - Specific Hazardous Waste

Generation is the ratio of Hazardous Waste Generated
in Plants and R&D centre to the Production of Finished
Our Specific Hazardous Waste Generation (Manufacturing

Facilities) has decreased by 8.85 % since FY 2018-19
64
Plastic waste management & Extended Way Forward

Producer Responsibility
Looking forward, our aim is to achieve the highest level of
KNPL, a prominent paint manufacturer in India, has waste reduction at its source, and we plan to conduct a
implemented various measures to tackle plastic waste comprehensive waste inventory study to ensure that our
generation and improve its Extended Producer Responsibility waste-related disclosures are in line with the requirements
(EPR) performance. of various frameworks. In addition, we intend to collaborate
with other waste-to-energy plants and cement industries to
We established a closed-loop plastic waste collection,
co-process our waste and achieve zero-waste-to-landfill in
recycling, and disposal system as part of our plastic waste
the near future.
management efforts. The system involved segregating plastic
waste generated during production processes and sending
it for recycling to convert it into raw material to produce new
plastic products. Any plastic waste that couldn’t be recycled
was disposed of responsibly in compliance with relevant
environmental regulations.
To fulfil our EPR obligations, we initiated various initiatives,

OUR COMMITMENT
including take-back schemes for plastic products, financing
the costs of managing plastic waste, and establishing Reduction in absolute
collection and recycling systems for plastic waste generated hazardous waste
by its products. We are also engaged with stakeholders, generation
including employees and the public, to promote responsible
plastic waste management practices and raise awareness
about the importance of a circular economy for plastics.
We collected and recycled 7421 MT of plastic against EPR
obligations for FY 2022-23 and 2499 MT as credit against FY
2021-22 obligation. Put together, there was a total of 9920
MT of plastic waste collected and recycled.
By adopting these measures, KNPL has contributed to

reducing plastic waste generation and promoted responsible
plastic waste management practices, which are essential for
achieving sustainable development.
65
GREENBELT
CIRCULAR ECONOMY
DEVELOPMENT
We have partnered with global organisations to speed up KNPL’s greenbelt development initiatives involve planting a
and integrate circular economy criteria into all our processes diverse range of native trees, shrubs, and other vegetation
to extend the useful life of our products via reuse or recycling. in designated areas around its facilities. These trees not only
contribute to biodiversity but also help to reduce air pollution
Challenge
by absorbing carbon dioxide and releasing oxygen. Going
Our biggest challenge was the lack of technology to recycle ahead, we have planned tree tagging exercises across all
pre-and post-consumer cotton waste into fresh fibers. We are locations to have traceability and ensure the survival rate
investing in developing textile waste recycling technology of the trees planted within our operational limits. The total
as our commitment to contributing to a circular economy number of trees planted in FY 2022-23 was 7096 . We ensure
by investing in textile waste recycling technology. Our R&D compliance with 33% of the greenbelt requirement of CPCB
efforts have led to several innovations that have shown across all manufacturing facilities. We have taken a target of
promising results and are in various stages of development. planting 2,000 trees inside factory premises and 5,000 trees
outside factory premises.
Going forward, Life Cycle Assessment (LCA) will be carried
out for our products to evaluate their environmental impact
across five categories. This assessment will analyze factors
like energy consumption, emissions, water usage, and waste
generation.
66
ENSURING ENVIRONMENTAL COMPLIANCE
Environmental Compliances
At KNPL, we emphasise maintaining strict compliance with all
relevant environmental laws and regulations. This includes
robust systems and controls to guarantee full compliance with
all applicable laws and regulations. We have implemented a
rigorous monitoring and tracking system to ensure that our
operations are always in alignment with these standards.
During the reporting year, we are pleased to report that

we remained fully compliant with all environmental laws
and regulations. We have not incurred monetary fines or
non-monetary sanctions for non-compliance with these
regulations. This is a testament to our unwavering commitment
to maintaining the highest levels of environmental compliance
in all aspects of our operations.
Financial commitment
For procurement and up-gradation of assets for environmental
monitoring, effluent treatment, water conservation, energy
efficiency, harnessing renewable energy, emergency
preparedness and safety equipment at existing plants, a
capital expenditure of ₹ 15.7 Crores was spent. An additional
amount of ₹ 7.79 Crores was spent as revenue expenditure at
our existing plants.
Our disclosures for energy management, GHG emissions,

water management and waste management have been
independently assured by a third-party external agency
based on International Standard on Assurance Engagements
(ISAE) 3000. Additionally, assurance has been given against
the disclosures’ adherence to the GRI’s Sustainability
Reporting Standards. The assurance report can be accessed
at our website: www.nerolac.com
67
INTELLECTUAL
CAPITAL
As a company that values knowledge and
continuous improvement, Kansai Nerolac
Paints views its intellectual capital as a driving
force behind its pursuit of greatness. This
capital encompasses the collective expertise,
insights, and innovation that propel
the Company forward. By dedicating
resources to developing and enhancing
our intellectual capital, KNPL sustains its
competitive advantage and remains at
the forefront of the industry.
68
Intellectual Capital 103rd Annual Report 2023
69
BACKDROP
With years of industry experience Impact on SDGs

and expertise, Kansai Nerolac
Paints has developed a profound
understanding of paints and coatings.
This deep-rooted knowledge allows
the Company to consistently meet its
customers’ needs and expectations
by delivering products and services
of exceptional quality. This strong
foundation creates a sense of trust
and care in the minds of consumers,
making the brand highly regarded
and reliable.
KNPL’s intellectual capital, backed
by its IT capabilities, is crucial in
elevating customer satisfaction.
Its IT infrastructure also facilitates
seamless and convenient
interactions with stakeholders. KNPL
implemented robust cybersecurity
measures and is adhering to data
protection regulations to safeguards
its customer information. Thus
fostering trust and confidence.
70
Response
The Company continually explores new possibilities through Continuing our relentless pursuit of excellence, we are
relentless research efforts, uncovers emerging trends, actively developing state-of-the-art solutions by harnessing
and develops cutting-edge solutions. This commitment to advanced digital and cloud technologies. These innovative
innovation allows Kansai Nerolac Paints to introduce products tools play a crucial role in enabling KNPL to accomplish
that meet the evolving needs of consumers, keeping various business goals and support our ambitious growth
pace with the dynamic market landscape. The Company plans. To ensure the reliability and security of our digital
endeavours to foster sustainability, eco-friendliness, and platforms, we are bolstering them with robust infrastructure
social responsibility through its operations. This is achieved and implementing stringent layers of data protection.
by creating environmentally conscious coatings and adopting
sustainable practices. Products / Solutions Design Philosophy
Our design philosophy has been to provide our customers
We are committed to enhancing our in-house capabilities
with sustainable, resource-efficient, differentiated features
by harnessing the extensive and distinctive knowledge
and high-quality products and solutions. The products
base of Kansai Paint Co., Limited, Japan, as well as our
are designed and developed on this philosophy and are
group companies worldwide. Furthermore, we will maintain
tracked until the applications are at the consumers’ end. Our
collaborations with our global technology partners, including
expertise in polymer chemistry and paint technology and
Oshima Kogyo Co. Ltd, Japan, Cashew Co. Ltd, Japan,
innovative mindset enables us to design sustainable and
Protech Chemicals Limited, Canada, and Kluthe, Germany.
unique solutions for customers.
Together, we aim to develop exceptional products and
solutions tailored to the specific needs of our customers.
71
Intellectual parameters of
our response:
HIGHLIGHTS:
Building a Future-
Ready Organisation:
17 Empowering Success with
cutting-edge R&D and IT
Total patents filed, and amongst them 10 have been granted infrastructure
2
Innovation for Impact:
Total patents filed during the year Investing in R&D to create
sustainable, user-friendly
4 products
Submitted research papers to the Indian Paint Association (IPA)
Creating a Competitive
₹ 40.39 Crores Edge: Continuously
developing innovative
R&D spend during the year
solutions as per industry
demands
1
Dedicated R&D centre at Vashi, Mumbai
5 local R&D
at respective plant locations
Colour lab
to develop colour shades and meet customer requirements
40+ shades
approved at leading OEM customers
72
73
BUILDING A FUTURE-READY
ORGANISATION:
NEW
TECHNOLOGY
EMPOWERING SUCCESS WITH CUTTING-
INTERVENTION
EDGE R&D AND IT INFRASTRUCTURE
KNPL is committed to achieving The Company is introducing a diverse and innovative

product range by launching a next-generation
excellence in R&D and IT CED coating that utilises nanotechnology and is
infrastructure, utilising advanced environmentally friendly. KNPL has launched new
low-density seam sealer and underbody sealant
technologies to become one of products, transitioning from high-bake coating
the industry’s most advanced and products to lower-temperature baking products,
introducing higher solids to reduce VOC emissions
technology-driven organisations. and innovating heavy metal-free paints and
The Company consistently invests coatings.
in its R&D infrastructure, intellectual

capital development, and research
and analysis efforts to enhance its
capabilities.
74
INSTRUMENT
INCREASING
ANALYSIS AND
DIGITAL
ANALYTICAL
CAPABILITIES
CAPABILITIES
KNPL is fully committed to leveraging advanced Enhancing Accuracy and Efficiency: The
digital and cloud technology to create world-class Role of Thermal Imaging in Building Inspections
solutions and achieve its business goals and growth
KNPL has introduced thermal imaging cameras,
plans. Our focus includes implementing digital
which have unlimited potential and are widely
platforms with robust infrastructure and security
utilised in building inspections to identify issues
measures, enabling our sales team with tools such
such as moisture/water seepage, surface
as scheme calculators and product comparisons for
temperature variations, and areas of hot air
enhanced performance in the market.
leakage. These non-contact devices detect
Following the successful implementation and and convert infrared energy into visual images,
positive response in the decorative business, we are leveraging the unique properties of heat in
expanding the application of these digital platforms contrast to visible light. By capturing infrared
to our powder coating division. Thus ensuring a energy and generating digital or analog video
seamless and efficient customer experience across outputs, thermal cameras enable accurate site
all segments. inspections and facilitate recommendations for
waterproofing and temperature-reducing roof
Recognising the importance of optimising our
products.
transport systems, we have integrated IT solutions
to provide on-time services to our valued customers.
Real-time visibility into shipment status, delivery
times, and vehicle locations empower us to make
informed decisions promptly, enhancing overall
operational efficiency.
Given the escalating challenges in infrastructure

and cybersecurity, we are continually investing in
security tools to bolster IT security and exploring
opportunities to integrate cloud technology into
our IT ecosystem further. To ensure the highest
level of security and reliability, our digital platforms
are supported by robust infrastructure and fortified
with advanced security measures. Also, in line with
our commitment to business continuity, we have
successfully implemented a Disaster Recovery
site at an off-site location. This ensures that even
in unforeseen circumstances, we can maintain
uninterrupted operations and provide seamless
services to our customers.
75
INNOVATION
FOR IMPACT:
INVESTING IN R&D TO CREATE

SUSTAINABLE AND USER-
FRIENDLY PRODUCTS
By touching lives every day,

KNPL goes beyond merely
providing paint solutions.
It aims to contribute to the
well-being and happiness of
individuals and communities.
Our products play a vital role
in protecting surfaces from
harsh weather conditions
and adding vibrant, long-
lasting colours to various
spaces, be it homes,
vehicles, or industrial
applications.
76
We understand the importance of adapting to the

constantly changing external environment. This
drives us to shape our competencies and launch
new solutions that cater to the evolving needs of
our customers. With our technological expertise,
we have the capability to develop innovative and
high-quality coatings that enhance aesthetics and
durability. By undertaking comprehensive research
and development efforts, we aim to introduce
revolutionary products that deliver exceptional
performance and cater to the industry’s specific
demands. Our goal is to surpass traditional offerings
and provide innovative solutions that exceed
customer expectations.
By staying at the forefront of technological
advancements and understanding the unique
demands of different sectors, we aim to continuously
enhance the quality of our coatings. And thereby
contribute to the overall well-being and satisfaction
of individuals and communities.
DECORATIVE – INDUSTRIAL –
OUR IMPACT OUR IMPACT
Trendsetter of low VOC products in Value-added solutions that are environment-

the Indian market and zero heavy friendly, energy-efficient and have enhanced
metals finish
Relentless focus on developing Medium-high solids, low VOC products, and

novel and sustainable eco-friendly low-bake technology are all key industry
green solutions differentiators
Powder-coating know-how to shift the 2W

component industry from liquid paints to zero
VOC powder-coating
77
CREATING
A COMPETITIVE EDGE:
DECORATIVE -
CONTINUOUSLY DEVELOPING INNOVATIVE
SOLUTIONS FOR INDUSTRY DEMANDS OUR EDGE:
KNPL creates a competitive edge

by introducing paints and coatings Working on megatrends such
that offer distinct advantages over as enhancing the life and
performance of coatings
competitors. This includes a focus
on creating advanced solutions in
niche segments such as adhesives Providing unique features
and construction chemicals. in the products to address

customers’ changing needs
Through innovation and extensive and preferences
research, the Company develops

paints with unique features, superior
performance, and enhanced
durability. By staying ahead of
market trends and understanding
customer needs, KNPL delivers
products that provide value and meet
consumers’ evolving requirements.
This competitive edge allows KNPL
to differentiate itself and attract
customers seeking high-quality and
innovative paint solutions.
78
Breakthrough Products & First-time to Market
Nerolac Impressions Kashmir
Nerolac Excel Everlast 12
Nerolac Economy Interior primer
Nerolac Economy Exterior primer
1K Epoxy Primer
Perma No Damp+
Perma Damp Lock
Product with Superior Products for New Segment

Functionality / New Business
Tile Adhesive
Termi Protect
Wonderwood 111 Thinner
79
AUTOMOTIVE - OUR EDGE –
Direct to metal Partnerships with experts and

Best-in-class technical
anticorrosive customers to foster innovation
services
technologies and colour trends
PERFORMANCE COATING (LIQUID AND POWDER) - OUR EDGE –
Intensified our efforts and commitment Cost-effective and customised

to providing environmentally friendly solution to meet customers’
and energy-efficient products unique requirements
Breakthrough Products
launched in FY 2022-23
Auto: Tin-free CED, High Resistance

Coating for Fuel Tanks
PC Liquid: Fluro Undercoat & Flouro

Topcoat (5-Coat System)
Powder: Super Functionality Powder

with High Abrasion Resistance
80
Product with Superior Products for New

Functionality Segment / New Business
Auto: New Low-density Seam Sealer and

Auto: Low-bake Products
Underbody Sealant Products
PC Liquid: 2K High Weather Resistance

PC Liquid: High-weather Ability Coatings PU System for Agricultural & Construction
equipment
Powder: Heat-resistant Powders Powder: Coatings for Alloy Wheels
Industry Knowledge & Collaborations

Our parent company, Kansai Paint Co., Ltd., Japan
(KPJ), continued to share best-in-industry practices and
technological developments. By forging strategic and
technical partnerships with esteemed organisations such as
Oshima Kogyo Co. Limited in Japan, Cashew Co. Limited in
Japan, and Protech Chemicals Limited in Canada, we have
laid a solid groundwork for delivering bespoke products
and services. Moreover, we fully appreciate the importance
of industry groups and collaborations, which serve as
invaluable platforms for expanding our business, exchanging
knowledge, and cultivating innovative ideas for ongoing
enhancements.
Way Forward
KNPL is committed to seeking opportunities to establish
new value chains in the future. Leveraging its R&D insights
and core competencies, KNPL aims to develop innovative
solutions that deliver superior quality and unique value to
customers. The Company acknowledges the significance
of capability building in driving innovation and business
excellence. Concurrently, it places a strong emphasis on
sustainability by offering products and solutions that not only
deliver enhanced performance but also embody sustainable
practices. By continuously improving and expanding its
offerings, KNPL aims to stay ahead of the market and provide
exceptional customer value.
81
FINANCIAL
CAPITAL
One of our major competencies is cost leadership,
critical for establishing operational excellence.
We are always looking for profitable growth
opportunities supported by customer feedback,
research and development, sustainable
solutions, and enhanced customer service.
We view financial capital as a tool of building
wealth for our shareholders via the prudent
use of the Company’s and community’s
resources.
82
Financial Capital 103rd Annual Report 2023
83
BACKDROP
Inflation, which was very high Impact on SDGs

at the beginning of the year,
started tapering downwards
towards the year’s second
half. This helped in some
margin improvement.
Response
The Company’s EBITDA was up to 11.2% for the
year as compared with 10.9% in the previous year.
Data on financial capital performance is covered in
the statutory part and in the latter sections of this
report. We maintain an apolitical stance and do not
support any specific political party or candidate
for political office. We did not offer or provide any
Company funds or property as donations to any
political party, candidate, or campaign during the
year.
Taking the Right Decisions

At KNPL, the Board of Directors makes all strategic
economic decisions, which are then carried out by
Managing Director, other management committee
members, and department heads as needed for
day-to-day business operations.
84
Financial Capital 103rd Annual Report 2023
Net Revenue
₹ 7,081.0 Crores
(Net revenue, which recorded a growth of 19.0% over the
previous year)
Overheads
The Company’s overheads increased from
₹ 827.9 Crores to ₹ 955.9 Crores

Strategic Capital Investment
₹ 139.6 Crores
(Spent towards capital expenditure related to various projects.)
EBITDA
₹ 817.9 Crores
(An increase of 25.9% over the previous year)
Way Forward – Budgeting and Control

At KNPL, the agenda and preparations for the upcoming fiscal
year are meticulously laid out at the start of the year. This
comprehensive process involves formulating and developing
a detailed yearly business plan encompassing all aspects of
our operations and strategies. A detailed annual budget is
prepared by the Management Committee, which includes
functional heads, Managing Director, and then approved
by the Board of Directors, based on the annual business
plan and macro environment, including currency value, raw
material costs, and energy costs, among other things. The
functional heads and the Management Committee review the
budget regularly. The Company monitors the budget using
several IT platforms and has devised multiple system checks
to keep it under control..
85
MANUFACTURED
CAPITAL
Kansai Nerolac Paints is a subsidiary of Kansai Paint Co., Ltd., Japan
(KPJ) and one of the leading paint companies in India. We are
known for our focus on manufacturing excellence, innovation,
and providing high-quality paint solutions to our customers.
As an aware and responsible corporate, we understand the
significance of sustainability for long-term success, so we
are committed to adopting green & sustainable practices
across our value chain. We place a high value on safety and
have implemented various measures to promote a strong
safety culture. Our quality, reliability, and customer
service have helped us build a positive brand image and
maintain a good reputation.
86
Manufactured Capital 103rd Annual Report 2023
87
BACKDROP
Our manufacturing facilities play

an important role in meeting the
Impact on SDGs
demand for automotive coatings,
powder coatings, and decorative
paints. The performance and
durability of the paints are directly
related to their quality, so it holds
the utmost priority. As paint
makers, we prioritise investments
in cutting-edge technology and
equipment to guarantee that our
products meet the most stringent
quality standards while minimising
their environmental footprint.
Our extensive product portfolio
includes automotive coatings,
powder coatings, and decorative
paints, providing our customers
with a diverse range of options.
Powder coatings, and decorative
paints, providing our customers
with a diverse range of options.
88
Response
We are known for providing industry leading quality
products and services with a strong commitment. Our HIGHLIGHTS:
ability to continually raise the standard has been aided
by our ability to adapt to the rapidly shifting business
environment and produce better products. We aspire to
demonstrate ethical manufacturing in the paints industry
by using our strong organisational culture, technological
4 subsidiaries
know-how, agility, and innovation. (1 in India, 3 international)
Focus of our response 3

International subsidiaries, one located in each Nepal, Sri
Strengthening integrated supply chain Lanka & Bangladesh
function
Subsidiary support
8
strategically located manufacturing facilities, 103 depots,
and 7 RDCs serving customers PAN India
Enhancing service levels with a focus on
new products or growth drivers
Optimising overhead expenses 160+

X-matrix projects undertaken
Engaging with people & collaborative
approach
Utilising Digital capabilities and new

11,000+
technology Kaizens received across all plants
Enhancing productivity and operational

efficiency
14 Awards
Embedding safety culture in every aspect awards received from CII, QCFI and other regulating
of the organisation bodies
Adopting and driving clean & green

initiatives
Quality control, and quality assurance to

improve product quality for customer and
consumer satisfaction
89
Manufacturing Footprint
Our strategic footprint spans the country with a manufacturing Decorative Segment
presence in India encompassing 8 facilities and 1 subsidiary.
This geographical distribution empowers us to effectively
meet the diverse requirements of our customers across Our manufacturing plants located at Hosur,
various regions. Our manufacturing facilities are equipped Jainpur, Lote, Goindwal Sahib, and Sarigam
with state-of-the-art plants, modern technology, and serve the decorative paint segment. We offer
automated systems to improve efficiency and quality control. a comprehensive range of products covering
We undertook an assortment of projects to address efficiency, interior, exterior, designer water-base finishes,
financial viability, process security, and an environmentally enamel, primers, wood finishes, waterproofing,
sustainable approach. adhesives, construction chemicals, as well as
niche products and soldier paints.
Our state-of-the-art manufacturing facilities

CAPACITY ADDITIONS: exemplify our commitment to environmentally
conscious, economically viable, and
technologically advanced products. These
We undertook the following capacity additions in the facilities have the capability to produce a
reporting period to meet the increasing customer diverse range of product streams, ensuring
demands and align with our investment plans. flexibility and efficiency in meeting customer
demands.
Jainpur - Augmenting capacities of wood coating,
Our commitment to upholding high-
alkyd resin and emulsion
quality standards and fostering continuous
Sayakha – Commissioning of industrial resins and improvement is evident through implementing
consolidation of GIHPC capacity various initiatives. These initiatives
encompass areas such as innovation, process

Goindwal Sahib Plant – Intermediate (in-house
standardisation utilising new technologies,
emulsion) capacity addition
digitalisation, as well as the review and
Hosur Plant – Water-based capacity augmentation standardisation of Standard Operating
Procedures (SOPs).

Internal capacity creation: By asset sweating,
leveraging existing automation, SAP system and Our operational excellence is supported
resources, new technology & innovative projects 3% by advanced systems, cutting-edge
of internal capacity is created over a CAGR of 3 years technologies, and innovative tools and
techniques that enable us to deliver superior
products and maintain high manufacturing
standards throughout our operations.
90
Industrial Segment
Our manufacturing plants located in Bawal, We take joint projects with our OEM customers
Sayakha, Lote, Hosur, Jainpur, and Marpol are (through our Value Analysis/Value Engineering
strategically positioned to serve the specific (VAVE) approach to reduce their carbon footprint,
segment precisely. save energy, and benefit operational parameters.
We offer an extensive portfolio of industrial We maintain a close industrial collaboration with

coatings, which covers a range of Automotive our parent company, Kansai Paint Co., Limited,
Coatings, Powder Coatings, Performance Japan (KPJ), along with other group companies
Coatings Liquid (covering both General Industrial to leverage their technical developments for
and High-Performance Coating), and Auto Refinish introducing innovative products and home-grown
solutions. technological solutions.
Our manufacturing facilities boast state-of- Our manufacturing facilities are equipped to
the-art infrastructure and employ cutting-edge handle a diverse range of product streams,
technology to deliver customised and innovative providing flexibility and efficiency in meeting
solutions tailored to diverse industries. customer requirements.
We have incorporated high-end ROBOTIC Bell We ensure the implementation of top-tier quality
and paint booths to replicate OEM line conditions, and manufacturing practices across all our shop
while implementing low-cost automation for floors.
pumps and Drum Cleaning Machine (DCM) to
Our commitment to manufacturing excellence
enhance product quality.
is fortified by the utilisation of advanced digital
All our facilities prioritise designer operational enablers and technologies, enabling us to
safety, strive for excellence in operational drive efficiency and innovation throughout our
parameters, and uphold the highest standards of operations.
quality throughout our product range.
Certifications
Goindwal Perma, Marpol,

Bawal Hosur Jainpur Lote Sayakha
Sahib Sarigam Goa
IATF 16949: 2016 Yes Yes Yes Yes Yes NA NA NA
ISO 9001:2015 Yes Yes Yes Yes Yes Yes Yes Yes
ISO 14001:2015 Yes Yes Yes Yes Yes Yes Yes No
ISO 45001: 2018 Yes Yes Yes Yes Yes Yes Yes No
91
Operational Excellence
The use of the Maynard Operation Sequence Technique (MOST) allows precise and quick measurement of a variety of work,
including repetitive and non-repetitive tasks, with ease. Our efforts to provide operational excellence reflect our production
competence. We constantly implement Kaizens and initiatives for productivity improvement, Batch Cycle Time (BCT) reduction,
error reduction, and throughput improvement. We regularly conduct performance analysis and debottlenecking exercises to
refocus neglected resources and restore capability. The new facility is now self-sustaining due to the launch of internal production
of intermediates like resin at Sayakha, in the reporting year.
We conduct internal and external benchmarking exercises to establish targets for our primary operational indicators. We have
implemented the 3-S (System not available, System inadequate, and System not followed) strategy to improve error-proofing on
shop-floor operations with an emphasis on quality, safety, and speed.
CAPABILITY
BUILDING
Capability building is a focused area of the organization

over the years, To further improve it, we encourage level 2-3
employees to participate in external events, competitions, and
trainings for upskilling. Internally we provide periodic trainings
for problem-solving tools, Six Sigma Green-belt tools such as
MSA (Measurement System Analysis) and Process Capability
Analysis, Value Stream Mapping, Jishu Hozen, TPM, and
ESG. These tools collectively empower us to enhance our
problem-solving capabilities, optimize processes, improve
measurement systems, streamline workflows, and cultivate a
culture of continuous improvement.
92
Digitalisation
Digitalisation has enabled us to create a smart manufacturing
Initiatives to drive environment where equipment and machines are
excellence interconnected and automated. This has led to increased
efficiency, productivity, safety, and quality control. IoT-
based predictive maintenance under asset performance
Improvement – Through Kaizen & Six Sigma management is implemented to improve equipment
Methodology reliability, performance, and safety.
FTR (First Time Right) Improvement for With data analytics for process optimization in Goindwal
Industrial & Small Order Dispatches (SOD) by Sahib manufacturing facility, resulted in increase in capacity,
measurement system analysis (MSA), gauge highlighting our expertise in optimizing resources and
repeatability and reproducibility (R&R), and enhancing operational efficiency.
standardisation of process parameters at the
We employ real-time monitoring of production processes to
plant and customer side.
ensure optimal output and maintain high-quality standards.
On account of post COVID effects and the Furthermore, we have plans in place to implement artificial
global political scenario, the global supply chain, intelligence, which will enhance operational efficiency,
covering raw materials and semiconductors, optimise parameters, and enable quality prediction. These
was disrupted. This lead to increased demand initiatives are aimed at securing a competitive edge in the
for small order requirements from OEM global market. We have launched digitalisation project for
customers. To respond to this business need, one of our powder coating facility, which will give results
internal initiatives were taken, which enhanced from FY 2023-24.
the delivery of SOD batches by ~ 20%.
As a part of our Greenbelt drive, projects under

various themes were undertaken, such as Batch
Cycle Time reduction (BCT) for intermediates,
customer complaints, and overhead cost
reduction.
Adoption of Low-Cost Automation for

performance improvement and strengthening
safety.
Monthly interplant critical parameter

benchmarking and periodic competitions
enabled us to enhance our overall performance
93
NEW TECHNOLOGY/ INNOVATION IMPROVEMENTS IN QUALITY, PRODUCTIVITY, AND

EFFICIENCY
We implemented new technology initiatives to reduce
resin color value and minimize pigment consumption. Streamlining production to increase quality, boost
This optimization effort resulted in cost savings, improved worker productivity, and reduce waste production.
production efficiency, and carbon footprint reduction. Sustaining attention to asset utilisation by SAP, process
optimisation, cutting-edge technology, and internal
capacity creation; implementation of an energy
management system.
Ongoing OEE (Overall Equipment Effectiveness)

improvement of critical equipment.
SAFETY AND EMPLOYEE ENGAGEMENT
Using modern diagnostic technologies to analyse
We actively involve external subject matter experts in
present assets in terms of usable life and improving
conducting safety audits to enhance our safety measures,
utilisation.
practices, and emergency preparedness.
Revisiting the Maynard Operations Sequence
Our implementation of an Occupational Health and
Technique (MOST) for improving manpower efficiency
Safety Management System aligns with ISO 45001
(white and blue collar) and Measure of Performance
standards.
(MOP).
We have established a robust safety infrastructure and
Various cost-cutting theme programmes –
ensured the deployment of adequate safety measures
implemented for reducingPower & Fuel, General
across all our operations.
Works Charges (GWC), and Spares & Consumables
Continuous infrastructure upgrades are undertaken to cost.
achieve the highest level of fire safety throughout our
Conducting Quality - Kiken-Yochi Training (Q-KYT), 3S
facilities including chemical storage safety.
and 4M analysis for quality improvement.
Our Safety Committee and comprehensive hazard
identification and risk minimisation structure play crucial
roles in maintaining a safe work environment.
We conduct regular training and awareness sessions to TECHNOLOGICAL ADVANCEMENT

instil a ‘Safety First’ mindset among our employees.
Deployment and usage of cutting-edge technologies
Our commitment to safety is further supported by and advanced equipment to improve performance.
the presence of Safety Training KIOSK and Safety
Usage of advanced premixing and grinding equipment.
Laboratories at all our locations.
Usage of better VOC control techniques for asset
We actively engage our employees through various
downtime reduction due to vessel entry-related work.
programmes, including the horizontal deployment
of Corrective and Preventive Actions (CAPA), Poka- SAP-based dashboards for effective utilisation of
Yoke, Kaizen competitions, Six Sigma initiatives, and assets.
Improvement projects.
Rolled out eco-friendly technology in the
We have rolled out a policy addressing behavioural electrodeposition.
approach towards safety and quality for plants and
New product introduction in the Intermediate category
depots to emphasise our vision & focus on safety and
with respect to better quality and performance.
quality.
94
MAINTENANCE STRATEGY
Optimal maintenance practices are paramount to ensure seamless production operations and minimise unplanned downtimes.
The primary causes of downtime stem from inadequate maintenance protocols, spare unavailability, subpar strategies, and skill
deficiencies. To tackle these issues, we have devised a multifaceted maintenance excellence strategy encompassing critical
maintenance facets to maximise equipment uptime.
Spares inventory Standardised Develop and

management & preventive document SOPs of
optimisation maintenance and critical maintenance
schedule adherence processes
Predictive Skill development Leveraging SAP for

maintenance for – SMEs for areas process changes /
critical equipment of electrical, and automation
instrumentation
Our strategy is based on Plan, Do, Check, and Act (PDCA)

principles. Specific metrics have been developed around
these areas to help us monitor the health of maintenance
sub-processes and make corrections as required. Besides,
benchmarking with industry best practices is also being
done.
To move further towards world-class maintenance

excellence, new technologies in the field of maintenance are
explored and leveraged.
95
SUPPORTING THE SUBSIDIARY COMPANIES
Throughout the reporting period, our primary emphasis was enhancing operations within our subsidiary companies. We
achieved this by implementing the successful practices established at KNPL and nurturing employee capabilities through various
engagement initiatives.
Nerofix-India Bangladesh Nepal Sri Lanka
Review mechanism Capability Best practices TPM (total productive

building implementation maintenance)
As part of our efforts to fortify manufacturing capabilities at our

subsidiaries, we implemented several supporting initiatives.
These included periodic knowledge sharing and guidance
from the KNPL plant, adoption of CANDO and safety training
practices, projects aimed at reducing spare and repair
costs, optimising manpower deployment, and calculating
productivity gains. Notably, these endeavours resulted
in enhancing manpower productivity by 25%. We also
focussed on cost reduction and productivity enhancement
through the implementation of Kaizen methodologies, with
a specific emphasis on addressing work-off, SPC reduction,
and resolving pain points within the plant operations. These
combined measures contributed to a proportional decrease
in process costs and significantly uplifted overall operational
performance.
96
KEY THEMES
Core KPIs
Adoption of Best
Cost optimisation, Practices (ENCON Trainings and
Productivity Innovation, Actionable
– Power factor, Awareness
enhancement, New aligned based on
Subsidiary Solar power, Sessions.
Yield Technology and internal & external
Support Safety, Water Periodic Audits
improvement, Digitalisation benchmarking
conservation & & Reviews
and Safety Waste reduction)
excellence
Strengthening the Supply Chain

KNPL emphasises the importance of a well-optimised supply chain to meet customer demands, minimise lead times, reduce
costs, and enhance overall operational efficiency. Continuous improvement efforts, collaboration with suppliers, adoption of
advanced technologies, and effective demand forecasting are key strategies employed to achieve a robust and agile supply
chain network.
As part of our supply chain expansion, we have introduced nano depots to enhance our distribution network further. By
decentralising our inventory and positioning it closer to the demand centres, we can effectively reduce lead times and enhance
overall responsiveness in meeting customer needs.
Our integrated supply chain allows us to effectively serve our industrial and decorative customers by implementing a well-
organised planning and distribution strategy to meet their needs.
Industrial Customers – Pull Type Operations
Decorative Consumers – Push Type Operations
How the Supply Chain Works
A production plan is prepared based on the planning. This acts as input for the Manufacturing team (in terms of finished goods
to be produced) and the Purchase department (regarding raw materials to be procured).
B2B
Demand Planning Supply Chain Planning
Production Planning
Manufacturing
Paint Processing at Manufacturing Site
Finished Goods Storage at Plant
Depot FG Distribution Network
Customers (OEM & Non-OEM)
97
For B2B, FG service levels are managed at JIT (Just in Time) level. Unique strength of having sufficient backup facilities and
flexibility of manufacturing products at multiple locations.
B2C
Demand Planning Supply Chain Planning
Production Planning
Paint Processing at Outside Processing Manufacturing

Manufacturing Site Centres (OPC)
Finished Goods Storage at Plant/OPC
Depots/RDC
FG distribution Network
Dealers/Retailers
Consumers
In order to cater for our customers in time , we identified

single-source suppliers and deployed suitable
alternatives.
WAY FORWARD – HOLISTIC IMPROVEMENTS
Our future focus is strengthening our manufacturing

capability to serve market demand through capacity
expansion, product innovation, operational excellence,
quality assurance, sustainability initiatives, and capability
development. By focusing on innovation & digital initiatives,
we aim to create a future-ready manufacturing set-up which
will be agile, resilient, customer-centric, and sustainable.
By practicing safety excellence, we ensure the well-being

and protection of our employees, customers, and the
communities in which we operate.
98
99
SOCIAL AND
RELATIONSHIP
CAPITAL
We recognise that the long-term success of our organisation is linked to the strength of our
relationships with stakeholders. We strongly believe that nurturing social and relationship
capital is crucial in providing valuable and growth-oriented benefits to our stakeholders.
Our inclusive growth path encompasses our customers, supply chain partners, and the
broader community. With a focus on ethical practices, our aim is to build a reputation as
an organisation that highly regards and cultivates social and relationship capital.
100
Social and Relationship Capital 103rd Annual Report 2023
101
BACKDROP
At KNPL, we have always Impact on SDGs

placed great emphasis on
infusing innovation throughout
our product offerings. We have
recognised the shift in customer
preferences and made it our
mission to deliver a unique
value proposition. Our close
collaborations with suppliers
have been instrumental in
driving business growth, while
our commitment to maintaining
harmonious relationships with
local communities has allowed
us to uplift lives responsibly. Our
belief in collaborative action
has consistently inspired us to
design solutions that protect
and touch lives.
102
Response Focus of our response
As a Company, KNPL has thrived on the strength of our

extensive and diverse customer base, representing our Delivering a superior customer
industry. By cultivating trust and nurturing relationships, we experience
have consistently aimed to provide our customers with high-
quality products and services that meet and exceed their
expectations. Supporting the efficiency of our supply chain is a
Strengthening relationships with
vast network of suppliers and dealers, with whom we maintain
supply chain partners
regular communication to foster mutual understanding and
drive value for both parties. Additionally, our commitment
extends beyond business transactions, as evidenced by
our active engagement in social outreach programmes and
Touching lives – across the community
CSR initiatives aligned with the United Nations’ Sustainable
Development Goals. These initiatives contribute to social
stability and empower local communities, strengthening our
stakeholder relationships and creating increased social value.
Going above and beyond traditional business practices, we
harness innovative technologies, products, and initiatives to
effectively collaborate with communities, actively supporting
their comprehensive development plans.
103
DELIVERING A SUPERIOR
CUSTOMER EXPERIENCE
Customer Satisfaction Index
In this ever-evolving business

landscape, we aim to attain FY19 85.3
growth that adds value by

providing tailored solutions that FY20 87.7
are sustainable, cost-effective,

and efficient. FY21 87.0
FY22 88.8
Ensuring customer satisfaction

is of utmost importance for us.
We proactively take the following Customer Complaints
measures to surpass expectations:
0.45
Understand and evaluate the needs of our
1.49
FY21
diverse consumer base prior to addressing

them 1.53
Regularly assess satisfaction levels among

different client groups
0.44
FY22
Maintain a comprehensive record of 1.33

client profile attributes, considering their
objectives and expectations 1.05
Proactively devise strategies to target crucial

0.31
areas for enhancement, retain existing
FY23
customers, and attract new ones 1.18
0.83
Deco% Industrial% Powder%
104
Customer Centricity Product Responsibility & Safe Usage

Our pioneering concepts and technology-infused paint We ensure that product information about the physical
solutions strengthen our commitment to prioritising dimensions and/or chemical compositions is provided through
customers. the product labels/pack declaration and/or catalogues.
The information on the products is readily available on our
In the Industrial – we embrace environmentally friendly,
Company website.
resource-efficient, and value-enhancing technologies
such as low-bake technology, high solids, low VOC, Additionally, KNPL discloses information such as directions
monocoats, direct-to-metal applications, and a shift towards for use, environmental parameters relevant to the product
premiumisation in select products. and instructions on safe disposal also provided on the
product packaging to inform and educate consumers about
In the Decorative – our focus is on providing lead-free, low
safe and responsible usage of products or services.
VOC, and sustainable products to our customers. We strive
to meet customer needs and preferences by incorporating Product information is available on the Product Data Sheet
additional features and functionalities into our paints. while the MSDS (Material Safety Data Sheet) is available to
Moreover, we continuously introduce new products and customers on the Company’s website. It includes product
expand our offerings to include a wide range of products in description and information on product performance features
emerging segments such as construction chemicals, wood & benefits, its application and usage, precautions for safe
finishes, and adhesives. usage, and technical data.
All the required information on our products and services

is available & can be accessed at our website: https://www.
nerolac.com/. We also have a dedicated consumer helpline:
1800-209-2092.
We promote our products and increase the value of our

brand on our merit without infringing on the rights of others
through unscrupulous means. We work with only respectable
advertising companies that are members of The Advertising
Standard Council of India (ASCI) and willingly adhere to its
marketing communications criteria.
Way Forward
Building upon our achievements in the previous year, our
focus for the upcoming fiscal year is to enhance customer
satisfaction further. We strive to maintain our leadership
position in industrial coatings and expand our customer
base in the decorative segment by improving visibility and
elevating our overall customer service. Strategic investments
will be allocated to markets and segments where we hold
a competitive edge while also exploring opportunities
in new markets to foster organic growth and broaden our
market presence. These well-planned initiatives are aimed
at fortifying customer relationships and ensuring exceptional
satisfaction across our entire range of offerings.
105
STRENGTHENING RELATIONSHIPS
WITH SUPPLY CHAIN PARTNERS
Promoting Local Procurement

Imported Raw Materials (in %)
Our organisation’s long-

term performance and FY19 42
brand value greatly depend
on the sustainability of our FY20 38
supply chain. To ensure
this, we prioritise close FY21 38
collaboration and cultivate
trusted, mutually beneficial FY22 35
relationships with our supply
chain partners. FY23 30
Indigenous Raw Materials (in %)

Emphasising Local Expansion:
Recognising the significance of high-quality raw
materials to our operations, we have established a FY19 58
network of over 500 direct raw material suppliers.
We actively promote local sourcing to enhance
the local economy, streamline logistics, and FY20 62
minimise transportation-related environmental
effects. Moreover, the majority of our packing
materials are sourced from within a 10-kilometer FY21 62
radius of our manufacturing facilities, allowing
us to prioritise proximity and reduce our carbon
footprint. Through these efforts, we invest in local FY22 65
growth, fostering sustainable practices while
maintaining the quality standards essential to our
business. FY23 70
106
Supply Chain Ethics: Regular Supplier Audits

We place great importance on ensuring ethical practices We perform audits to maintain high operational standards
throughout our supply chain. To achieve this, we proactively as part of our due diligence. Regular supplier audits are
educate and inform all our supply chain partners about conducted to assess their performance. Our comprehensive
our Supplier Code of Conduct. This code emphasises the audit system includes on-site factory visits to evaluate
principles of fairness, transparency, respect for human rights, suppliers. During FY 2022-23, we conducted supplier audits
adherence to environmental legislation and standards, and for 16 suppliers. A collaborative testing was also conducted
compliance with health and safety requirements. We strive with 17 vendors to enhance quality.
to foster a culture of responsible conduct, promoting ethical
interactions and upholding our commitment to social and
environmental responsibility across our supply chain.
Supplier Audit Parameters
Establishing a Sustainable Supply Chain:

The proactive engagement with our supply chain partners is
Certification and statut
central to our sustainable supply chain strategy. We conducted
virtual training and awareness sessions on Environmental, Supplier control and delivery performanceory
Social, and Governance (ESG) principles. These sessions compliance
showcased KNPL’s journey and communicated our
expectations from our value-chain partners in their pursuit Sustainability/ Green initiatives
of WWW excellence. By fostering such collaboration and
knowledge sharing, we aim to build a sustainable supply Complaints management
chain that aligns with our values and contributes to a more
responsible and ethical business ecosystem. Documentation and data control
Inspection of incoming materials
Process control
Training and development
Inspection of in-process materials
Inspection of finished goods
Equipment and standard control
Shop-floor observations
Handling, storage and packing
Maintenance management
5S and safety
Human rights
107
TOUCHING LIVES –
ACROSS THE COMMUNITY
As a responsible corporate citizen, we hold a steadfast

belief in the well-being of society. Embracing a partnership
approach, we actively engage in meaningful initiatives that
promote shared progress and inclusive growth. These
endeavours complement our core business proposition,
which revolves around promoting well-being through
colours. By combining our business goals with a genuine
commitment to societal welfare, we strive to create a
positive impact and contribute to the holistic development
of the communities we serve. Our approach embodies the
understanding that true success is achieved when both
our business and the wider society thrive together.
65,000+
lives were touched through our CSR
intervention
108
109
CORPORATE
SOCIAL RESPONSIBILITY
To ensure an effective and structured approach

to CSR, we have implemented the following key
At KNPL, our approach to elements as part of our CSR charter:
CSR is guided by a dedicated Stakeholder Consultation
Corporate Social Responsibility

(CSR) Committee, adhering to Needs Assessment
the provisions of Section 135

Identifying Potential Opportunities
of the Companies Act, 2013.
This committee ensures the Periodic Monitoring and Evaluation
fulfilment of our CSR objectives
and facilitates efficient Stakeholder Engagement during Implementation
allocation and utilisation of
resources. Our CSR Policy Resource Mobilisation and Planning
serves as a guiding principle

for our community stewardship
activities and is regularly
Our CSR initiatives focus on the
reviewed and updated as following key areas:
needed.
Livelihood & Skill Enhancement
We engage in CSR initiatives by collaborating with
our team, NGO partners, and government entities. We Rural/Community Development
actively encourage our employees to volunteer their
time and skills in these endeavours. Ensuring Environmental Sustainability
Through our dedicated CSR efforts, we remain
committed to creating a positive impact and Preventive Healthcare and Sanitation
contributing to the well-being and development of the
communities we serve. Promoting Education
Restoration of Buildings & Sites of

Historical Importance
110
Livelihood & Skill Enhancement Promoting Education

Impart training to unemployed youth to enhance their Collaborate with various educational institutes to promote
capacity and skill-set through Mobile Training Academy education in rural areas and provide educational training
Women Empowerment through livelihood intervention and guidance to underprivileged students
Renovation of science labs, drinking water facility,
installation of solar power equipment, construction of
boundary wall and classroom at various schools and
educational institutes
Skill training Provision of Educational Materials
Rural/Community Development Preventive Health Care and Sanitation

Construction of bus shelter, provision of drinking water Seek to provide basic health care & sanitation facilities to
facility, community halls, borewells, improve general health conditions and sanitation of the
Work to provide basic infrastructure/facilities to the rural communities we operate in
community residing in the nearby areas of the plants in Setting up health camps, creating awareness, building
order to improve their basic living standards toilets in villages, common public places and schools
Renovation of Bus Shelter Cataract Surgeries
Ensuring Environmental Sustainability Restoration of Buildings & Sites of

Implementation of watershed development projects - Historical Importance
pond cleaning, desilting/deepening of the pond and Projects for the Conservation of National Heritage sites,
overall pond restoration Art & Culture
Focus on sustaining ecological balance through Promotion & Development of Traditional Arts and
beautification projects and plantation activities, among Handicrafts
others
Plantation Drive
111
112
Human Capital 103rd Annual Report 2023
HUMAN
CAPITAL
At KNPL, we hold a firm conviction that employees are at the
forefront of our organisation’s success. They form the core of
our organisation, and their talent, dedication, and creativity
drive our growth and propel us towards progress.
We foster a performance-driven environment to cultivate a

culture that puts people at the centre. We set high expectations
and provide our employees with the necessary resources and
support to excel. By nurturing a culture that values excellence,
innovation and achievement, we inspire our employees to push
boundaries, take risks, and continually strive for greatness.
113
BACKDROP
Aligned with our future-oriented Impact on SDGs

vision, KNPL is dedicated to
fostering a highly skilled workforce
inspired by our organisational
values. Our performance-driven
culture inspires employees to
strive for excellence, enhancing
our organisational capabilities and
consistently delivering exceptional
results.
We actively encourage our employees to think outside the
box, explore new possibilities, and contribute their unique
HIGHLIGHT:
perspectives to drive meaningful change. To foster a dynamic
culture of innovation, we organise numerous idea-generation
Employee engagement survey reflected a clear
sessions. These sessions provide platforms for cross-
positive shift in the employee happiness index.
functional teams to collaborate and transform these ideas into
Also a clear uptrend towards a more collaborative
reality, harnessing the collective creativity of our workforce.
organisation culture.
Response
Our unwavering commitment to employees is evident in
Parameters of our Response:
the creation of a vibrant and enriching work environment. We have identified three core areas to nurture our human capital:
Through continuous engagement and collaboration, we
Empowering People, Driving Success –
recognise that our human capital forms the bedrock of the
Human Resource Management
organisation, driving us to achieve excellence aligned with
our visionary goals.
Creating a Safe Work Environment –
We entrust our future leaders with key project interventions, Occupational Health and Safety in Action
empowering them to shape the Company’s strategic direction.
We aim to foster a sense of ownership and accountability
while nurturing their professional growth by providing them Ethics and Integrity
with opportunities to lead and contribute at a higher level.
114
EMPOWERING PEOPLE, DRIVING

SUCCESS – HUMAN
RESOURCE MANAGEMENT
Age Group Workforce Breakdown

At KNPL, we go beyond providing
jobs; we offer a unique learning
<30 Years
51
experience. Our relentless
795
focus is on creating a culture of
education and enlightenment.
31 - 50 Years
We foster collaboration, 41
innovation, and empowerment 2,211
as the key drivers of growth and

development. Through various
<50 Years
16
developmental initiatives, we 265
aim to create a stimulating

environment that enables our 108
employees to unleash their full
Total
3,271
innovative potential.
Male Female
Gender Wise
Permanent Employees and Workers Contractual Employees and Workers
3,271 108 5,372 108

Male Female
115
Female Workforce Breakdown Gender-wise
Function Count
Male Female
Sales 22
New employee hiring
STEM 37 details 1,055 60
Support 49
Employee Turnover details
815 22
Total 108
Category Female Male
MD & Directors - 3
Top Management - 8 25.8%
Senior Management 1 26 Employee Turnover
Middle Management 2 93
Junior Management 12 340
Executives 88 2,079 33%
Operators 5 722
Rate of new Hires
Grand Total 108 3,271
116
EMPLOYEE ENGAGEMENT
Inclusivity
‘I am Nerolac’ page (a digital media platform to form a link KNPL recognises that differentially abled individuals
between the employees and the brand) have unique talents and perspectives that can drive
innovation, enhance customer service, and foster a
Quarterly Townhall Meetings (addressed by the MD the
more inclusive workplace. We have set a target of
achievements and concerns of the relevant period
representing a differentially abled workforce of up to
Webinars addressing the health and well-being of our 0.25% White-Collar manpower by March 2024.
employees in association with our medical insurance
In our commitment to fostering an inclusive and
partner
welcoming workplace for all employees, we have
Yammer – an application - used by employees to show conducted an accessibility audit of our new Head
appreciation towards their fellow colleagues in case of Office premises with a competent third-party. This
good performance, situation handling or exceptional audit aims to ensure that our workplace is accessible
behaviour to all individuals. Moving forward, we will continue
Employee engagement surveys to prioritise inclusivity in all our future workplace
locations.
Celebrating diversity
Employee participation in CSR initiatives
Annual Learning Conference (ALC) held for all the

Managers - A Learning Conference and a notable event that
provided a platform for communication to representatives Employee Benefits
of all functions about the Company’s performance as well
as the future plans and direction
KNPL offers a range of employee benefits,
including gratuity and superannuation, medical and
life insurance, group accident insurance, maternity
leave, pension and other retirement benefits and
Provident Fund contributions. In FY 2022-23, a total
Gender Diversity
of 108 permanent female employees were entitled
to parental leave. As an organisation, we foster an
KNPL is dedicated to expanding the recruitment of
equal opportunity culture within the organisation.
female employees by consistently identifying specific
All recruitments are based on competence,
roles suitable for women and collaborating with
potential and candidate experience with respect to
specialised consultants who focus on Diversity Hiring.
a job profile.
Our aim is to increase the representation of women
in our workforce continuously. Women employees
account for 3.2% of our permanent workforce, an
increase from 2.3% in the previous year.
117
NURTURING TALENT
Initiatives
Digital Learning platform Percipio (an L&D platform

for managers of the organisation)
Talent Acquisition & Recruitment
Sales Competency Enhancement Programme
We aim to support the Company’s objectives while ensuring
A comprehensive training programme is imparted to
that our choices benefit our employees and improve their
the sales team on the topics given below:
internal job fulfilment and advancement opportunities. Fresh
talents from the management & engineering fields are Introduction to the Paint industry
recruited through reputed management and engineering /
Paint technical
technical institutes. The industry brings in this influx through
short-term internship assignments, seminars, and campus Product training
collaboration initiatives. Through our well-designed Graduate Scheme management
Engineering Trainee programmes and Management Trainee
programmes, fresh campus graduates are given various Stakeholder management
projects and their performance cycle is managed and Digital training
supported for a year, basis their performance and talent, they
Self management
are finally placed in the roles where they perform well.
Master Classes for enhanced product knowledge
Training on Digital Applications for internal

stakeholders for faster adoption
Learning & Development
With an endeavour to build talent across levels, our talent
management programmes are designed to help the
organisation spot high-potential performers within varied
functions and across levels. The key positions and the Behavioural training
talent pool are identified for every function after conducting Corporate Grooming
various assessments to assess each individual’s inherent
Stress Management
strengths and discover their potential. We provide a learning
environment to allow our employees to shape their careers Communication Skills
as they aspire. It helps our employees and business flourish
Interpersonal Skills
by always keeping us agile and relevant — today and in the
future.
ESG Training
POSH Training
Code of Conduct
Code of Conduct for Affirmative Action
Health Ailment Related Policy
Policy on Social Conduct at Workplace
Training on BRSR Principles
Supplier Code of Conduct Policy for

Purchase Function
118
Strategic Workforce Planning

Our workforce planning approach allows us to proactively Initiatives:
address talent shortages, develop succession plans, and
Performance Management:: Our performance
optimise workforce deployment, ensuring an agile and
appraisal system is assessed based on a
competent workforce.
combination of quantitative and qualitative criteria.
After in-depth analysis, a talent inventory is created to prepare Key Performance Indicators (KPIs) are established
individual development plans for the identified performers. in alignment with the Company’s growth strategy at
The plans comprise extensive training, cross-functional the start of each fiscal year, with a focus on fostering
assignments, projects, and mentoring. collaborative efforts to achieve our organizational
objectives.
These performance dashboards we utilise are

designed to be user-friendly and provide valuable
insights through color-coded visuals on a monthly
Initiatives: and cumulative yearly basis. These insights help
Junior to First Time Managers: Internally designed identify areas for improvement, motivating teams
scientific development centre for talent to elevate to strive for better performance. This transparent
themselves from junior to mid-level management called system enables employees to review their own
MDC. performance and track progress effectively.
Accelerated Leadership Programme: TAJ is a Off-roles to On-roles: We conduct DGA Assessments

unique programme in collaboration with world-class to evaluate our contractual employees’ performance
organisation to prepare a leadership pipeline for KNPL. aspects and behavioural competencies in the sales
department.
Employee Performance Management

We prioritise a performance evaluation process that embodies
fairness, transparency, and trust. Every employee undergoes
an annual performance appraisal based on their individual Employee Connect
performance. We believe in fostering an environment where We have established effective employee connections
employees feel valued and recognised for their contributions. and communication platforms. The key ones include:
Initiatives:
Coffee with HR – A ‘Meet and Greet’ session with

the HR as a part of the induction training of new
employees
HR connects - Understanding the road travelled so

far by the high-performance employees once a year
on the Nerolac journey
Townhall meet – Quarterly townhall meets are held

to discuss the progress of the organisation
Impressions – Monthly newsletter that captures

various events and news pertaining to each function
and location
119
EMPLOYEE WELLBEING
Focusing on the well-being of our employees, we have

always focused on both their physical and mental wellness.
Continuing this journey, KNPL launched initiatives to
holistically take care of its employees.
Wellness Corner
KNPL introduced a Wellness Corner – a customised wellness
Step Challenge
app for its employees. This app allows employees to avail
benefits of a doctor on-call with 30,000+ specialists available A step challenge is an employee engagement activity that
for video or in-person consultation along with three free encourages employees to walk more and increase their
follow-up visits. This facility covers employees and five of daily step count. Employees were encouraged to participate
their family members, who depend on them. in teams or individually in this contest. Daily scoreboard
was published to motivate them. This was done individually
They can reach out to the best medical professionals.
as well as in team and acted as a fun and effective way to
They can also have free diet regimes designed for them
promote a focus on the health and wellness of employees.
by nutritionist. In case of any stress, they can reach out
to certified physiologist for help, and we ensure that the Nerolac’s 100 Days Steps Challenge had a total of 550+
employee’s anonymity is maintained. participants who walked 35 crore steps laying a solid
foundation for a fitter Nerolac.
Also, another Employee well-being initiative that we
implemented was Wellness Webinars. This was aimed at The winners of the challenge showed great perseverance
fostering the overall health and well-being of our employees. and inspired many of us with their discipline and commitment.
These webinars are online events specifically designed to In the Individual event, the top 10 participants achieved a daily
promote health and well-being within our workforce. They step count of 35,000 steps, while 100 participants maintained
offer a convenient and flexible platform for employees to a minimum of 10,000 steps each day for 100 consecutive
access valuable information and engage in various wellness days. In the Teams event, the top three teams collectively
activities. averaged 25,000 steps per day throughout the duration of
the challenge.
120
Discounted Gym Memberships endeavours of our employees and employee groups

by acknowledging them in the aforementioned
Engaging in regular exercise brings about numerous beneficial categories. This served as a significant motivating factor
effects on immune function, such as boosting the production for our employees to consistently deliver outstanding
of specific immune cells and reducing inflammation. As part performance.
of our employee wellness program, we extend a well-being
initiative to our employees known as ‘DISCOUNTED GYM
MEMBERSHIP’. This perk is intended to motivate employees
to embrace healthy habits and lead an active lifestyle by
providing discounted gym access.
Special Deals & Discounts
We value our employees and constantly seek innovative

ways to reward their talent. We provide access to special
deals and discounts from various brands. Our employees can
avail of these benefits through an app, which offers discount
coupons and opportunities for online purchases. This
initiative has gained popularity, with over 685 registrations,
allowing our employees to enjoy offers and benefits.
EMPLOYEE REWARDS During the year, we organised numerous innovation

workshops to foster creativity. The ideas generated underwent
& RECOGNITION thorough evaluation based on various parameters. The most
promising ideas were then selected for implementation. We
At KNPL, we understand the importance of encouraging
acknowledged and rewarded the individuals who generated
behaviours that align with our Company’s strategy. Rewards
these ideas, recognising their valuable contributions to our
and recognition play a critical role in motivating and engaging
innovation agenda.
employees. When employees feel valued and appreciated
for their hard work and achievements, they are more likely
to exhibit behaviours that contribute to the success of
the organisation. We foster a culture of appreciation and
motivation by implementing these rewards and recognition
initiatives. Employees are encouraged to exhibit behaviours
contributing to our Company’s strategic objectives, driving
overall success and creating a positive work environment.
Within the Nerolac Ecosystem, we have implemented various

rewards and recognition programmes:
Team Awards were awarded across following categories:
Best Performing Factory: : Evaluation parameters were

diverse, covering cost, quality, process, productivity and
sustainability
Best Performing Decorative zone and Best Performing

Industrial zone: Evaluation parameters were Budget
achievement, Channel participation, Inventory control,
Contribution and Product mix.
We expressed our appreciation and recognised the
121
ETHICS AND
INTEGRITY
Establishing appropriate Code of Conduct

behavioural norms with Designed for managerial employees and executives of
KNPL and its subsidiaries to establish boundaries and
discipline, professionalism, spread awareness about the Company’s Code of Conduct.
and best ethical practices It states fundamental aspects of appropriate behavioural

norms like discipline, self-control, professionalism, and
as fundamental, KNPL has best ethical practices.
created a Code of Conduct for Whistle Blower

its Managerial and Executive KNPL maintains a Whistleblower Policy to encourage
Staff. The intent of this Code employees to proactively voice their grievances and report
legitimate concerns. The organisation remains committed
of Conduct has always been to upholding elevated standards of openness, integrity,
guiding and regulating the probity, and dependability throughout its operations. The
Company actively encourages its employees to report
administration of its employees. any concerns related to suspected serious misconduct,
It also strives to engrave the assuring them they can do so without fear of punishment,
reprisal, or unfair treatment. Appropriate safeguards are in
Company’s core values while place to ensure that all employee concerns are properly
understanding the best-in- considered.
class practices and establishing

centres of excellence at KNPL.
122
CREATING A SAFE WORK ENVIRONMENT:

OCCUPATIONAL HEALTH AND
SAFETY IN ACTION
At KNPL, we prioritise safety as a over their well-being as well as

fundamental concern, ensuring the welfare of their colleagues.
its integration into every facet of This concerted approach further
the Company’s operations. The facilitates the deployment of
Company’s dedication to safety robust safety measures across all
has resulted in a safer workplace organisational strata, constituting
for its employees and has helped an enduring testament to our
foster an effective safety culture unwavering dedication to a safety-
throughout the industry. We driven ethos.
encourage employee involvement
in safety initiatives and provide a
platform for employees to raise
safety concerns or suggestions.
Regular safety audits and
assessments to identify areas
for improvement and implement
corrective actions. By seamlessly
integrating safety training and
competitions into our operational
framework, we have successfully
fostered an ecosystem centred
around safety mindfulness. This
approach empowers our workforce
to take unequivocal ownership
123
Initiative Description Outcome
Clearly articulates the organisation’s dedication to

health and safety across all aspects of business
Dedicated company-wide operations
Occupational Health, Safety, and Establishes safety as an integral value within the
Environment (OHS&E) Policy organisational framework
Instils a pervasive culture of safety to enhance
Policy awareness and consciousness
Disciplinary action for a Safety

Improvement in safety awareness and adherence to
Violation Policy in line with KPJ
safety rules and regulations
guidelines
Adherence to the regulations outlined in the Factories

Act of 1948
A well-defined Safety Committee Promotes inclusive participation in health and safety
with inclusion of workmen aspects
representation and regular Enhances the safety framework and engages
Committee evaluations stakeholders through consultation and participation
Fosters a sense of ownership at every level of the
organisation
Systematic identification of hazards and

implementation of measures to mitigate risks,
Consisting of proficient individuals
enhancing overall safety preparedness
from Production, Engineering, and
Collaborative evaluation of operational risks and
Cross-functional EHS backgrounds
implementation of effective measures to minimise their
Structure impact
Establish robustness and asserts the effectiveness of

All major plants are ISO 45001
the safety management systems
certified and periodic surveillance
Periodic surveillance audit to ensure the effectiveness
audits are conducted
Certification of OH&S management systems
Handle emergency medical situations

Offer preventive and curative health services to its
Dedicated Occupational Health
employees
Centres (OHCs) & Ambulances
Emergency OHC complaint analysis enables us to determine the
Resource cause of complaints and understand the trends
Mock drills and fire drills are

conducted periodically, some in Improve preparedness & responsiveness amongst
collaboration with NDRF (National employees for emergency
Drills Disaster Response Force)
Conducted half yearly for all

Medical counselling by the practitioner and identifying
employees including contract
specific areas of concern
workmen in line with the Factories
Fosters employee well-being
Health check-ups Act, of 1948
124
Initiative Description Outcome
Internal: Monitoring & review of

safety indicators by corporate EHS
External: Periodic audits conducted

by approved safety experts and Strengthen documentation and record-keeping
OEMs Enhance safety measures & control
De-risking the operations
Safety Audit In FY 2022-23, Global Safety and
Quality (GSQ) audit was conducted
by Parent Company Kansai Paint
Japan at Sayakha, Hosur & Bawal
Identification of likely safety risks and hazards

Process Hazard Analysis & Hazard
Institution of mitigation strategy and action plan for
and Operability study
process hazard elimination/ minimisation
PHA & HAZOP
Hazard Identification and Risk Track expected hazards and risk analysis.to put control
Assessment measures in place
HIRA study
Undertake a comprehensive fire

load study to analyse the fire load
densities in different areas of
Determine the adequacy and suitability of the fire-
the plant. Implement appropriate
fighting equipment in case of fire
measures for detection, provision,
Fire safety activation, and suppression to
enhance fire safety
Effective chemical management and enhanced

100% compliance to the storage
chemical safety
of raw materials as per Chemical
Reduce inherent hazards by proper segregation,
Compatibility
Chemical Safety storage, and handling of chemicals
Assessment of existing interlock

Establish workability & robustness of the interlock
system robustness and identification
system
Interlock system of new areas
Periodic earthing check at the

shop floor, Safety walk, safety Increase robustness and create a sense of awareness
communication, Toolbox Talk, CFT 5S about safety
Internal Safety & safety inspection
Procedures
125
Safety Trainings and Competitions Personal Level Risk Assessment

We highlight the paramount importance KNPL attributes to Personal level risk assessment (PLRA) is an initiative to
safety training and competitions, aligning with our steadfast encourage individuals to assess the risks associated with their
commitment to fostering a safety-first culture and driving daily occupational and routine activities. It promotes proactive
continuous improvement within our organisational framework. identification and management of potential hazards, such as
These pivotal endeavours serve as instrumental catalysts for chemical exposure and proper handling of paint products.
augmenting our employees’ safety acumen and fortifying By conducting PLRA, individuals prioritize their safety and
their competencies through regular training programmes mitigate risks during paint-related tasks.
encompassing a diverse array of critical facets, including
It is a systematic process of identifying, assessing, and
hazard identification, risk assessment, proficient utilisation
controlling risks associated with individual activities, whether
of personal protective equipment (PPE), adept emergency
in daily occupational tasks or routine/general life activities. It
response protocols, and unwavering adherence to safe work
aims to promote personal safety and well-being by evaluating
practices.
potential hazards and taking appropriate measures to mitigate
Furthermore, we ardently advocate for employee or eliminate risks.
engagement and motivation through the dynamic platform
The goal of PLRA is to eliminate or minimize the likelihood of
of safety trainings and competitions like Kiken Yochi
accidents, injuries, and negative health impacts, fostering a
Trainings (KYT), Danger Experience Programme (DEP), Life
safer environment in occupational settings.
After Accident (LAA) exercise, trainings on static electricity
and human error prevention, online safety tests, safety
quiz, and CAPA completion across different levels. These
spirited contests not only provide a forum for our workforce Questions to ask when performing
to showcase their acuity in safety-related domains but also task or making a change
serve as fertile grounds for the cross-pollination of innovative
WHY am i doing it at all?
ideas and the cultivation of synergistic collaborations.
Through the cultivation of healthy rivalry, cohesive teamwork, WHAT could go wrong?
and the dissemination of exemplary practices, we foster a
collective ethos rooted in safety consciousness and ensure HOW could it affect me,
the pervasive assimilation of best-in-class methodologies others or the environment?
throughout our multifaceted operations. HOW it is to happen?
WHAT can i do about it?
If it can be made safe, STOP &

get help
Behavioural Based Safety
A notable importance is provided to behaviour-based
safety at KNPL, acknowledging that a considerable number Industry collaboration
of incidents arise from behavioural concerns such as non-
We actively participated in a range of external training
adherence to procedures, carelessness, or failure to comply
sessions and webinars conducted by esteemed
with personal protective equipment (PPE) guidelines. To
organisations such as the Indian Chemical Council (ICC),
address this, we have initiated BBS (Behaviour-Based Safety)
Confederation of Indian Industry (CII), and the Federation
observations across all our facilities and regularly conduct
of Indian Chambers of Commerce & Industry (FICCI) with
BBS training programmes for employees. This proactive
regard to safety. These training programmes and webinars
endeavour enables us to tackle behavioural aspects, enhance
served as valuable platforms for us to enhance our
safety consciousness, and cultivate a culture of responsible
knowledge and understanding of safety practices, keeping
and conscientious conduct among our workforce.
us abreast of the latest industry standards and regulations.
In FY 2022-23, we achieved 52,227 man-hours of safety By actively participating in these external events, we
trainings across all levels. strengthened our commitment to continuous learning and
126
improvement, enriching our safety culture and fostering a In FY 2022-23:

proactive approach towards ensuring the well-being of our
employees, communities, and the environment.
Particular FY 2022-23
Lost Time Injury Frequency Rate (Per 0
Safety Audits Million Man-Hours worked)
Severity Rate (Per Million Man-Hours
During the reporting period, our Sayakha, Hosur, and Bawal 0
worked)
Plants underwent audits conducted by our parent company,
Kansai Paint Japan (KPJ), in accordance with the KPJ Global Lost Time Injuries (LTI) 0
Safety and Quality (GSQ) Standards. These audits assessed Minor Injuries 6
various attributes such as Management Systems, Fire
Million-man hours worked without LTI 12.06
Prevention, Out-flow Prevention, Occupational Accident
Prevention, Disaster Measures, and Chemical Safety. The Occupational Illness 0
audit findings demostrated the plant’s preparedness,
implementation of measures and control mechanisms in
Way Forward
ensuring safety.
Moving forward, our objective is to enhance our safety
Safety Awards management system by implementing efficient safety
measures, assessing their effectiveness, and fostering a
To foster a culture of continuous improvement and learning,
culture of continuous improvement to further strengthen
our plant teams actively engage in external competitions.
safety practices. We intend to horizontally apply the insights
In the fiscal year 2022-23, our Jainpur Plant was honored
gained from the GSQ audit findings, aligning with the KPJ
with the prestigious “Platinum Award 2022” and “Champion
standards, in order to enhance readiness and preparedness
Award 2022” by APEX India Foundation. Additionally, our
across all our facilities and locations.
Lote Plant received the “Prashanasa Patra” at the fourth level
from the National Safety Council, while our Bawal Plant was
Dream Employer of the Year
recognised by the Government of Haryana for achieving the
“Longest Accident-free period.”
Incident Management
Our unwavering dedication to attaining a state of ZERO
Incidents.
The utilisation of an online, technology-driven SAP EHS

module to document, monitor, and promptly address
safety issues and compliance requirements.
Conducting root cause analyses for all safety-related

incidents and implementing widespread preventive
measures to eliminate their reoccurrence.
We are thrilled to share that Kansai Nerolac Paints Limited
has been honoured with the prestigious 'Dream Employer
of the Year' award for 2022 in the category of "Dream
Companies to Work For." This recognition was bestowed
upon us at the Times Ascent - WORLD HRD CONGRESS
convention held in Mumbai. It is a testament to our
organisation's commitment to creating an exceptional work
environment that embodies innovation, collaboration, and
empowerment.
127
KANSAI NEROLAC PAINTS LIMITED STATUTORY REPORTS
KANSAI NEROLAC PAINTS LIMITED

Registered Office: NEROLAC HOUSE, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013, Maharashtra
Corporate Office: 28th Floor, A-wing, Marathon Futurex, N.M. Joshi Marg, Lower Parel, Mumbai 400 013, Maharashtra
Tel.: +91 22 40602500 / 40602501 • Website: www.nerolac.com • Investors Relations e-mail ID: [email protected]
Corporate Identity Number (CIN): L24202MH1920PLC000825
Notice
NOTICE is hereby given that the 103rd Annual General 5. To consider and, if thought fit, to pass the following
Meeting of Kansai Nerolac Paints Limited will be held through Resolution as an Ordinary Resolution:
Video Conferencing (“VC”) or Other Audio Visual Means “RESOLVED that pursuant to the provisions of
(“OAVM”), on Monday, 26th June, 2023 at 11 a.m. (IST), to Section 149, 152 and 161 and other applicable provisions
transact the following business: of the Companies Act, 2013 read with applicable
rules made hereunder (including any statutory
Ordinary Business: amendment or modification or re-enactment thereof,
for the time being in force) and Articles of Association
1. o consider and adopt the audited financial statements
T of the Company, Mr. Pravin Digambar Chaudhari
(including the consolidated financial statements) of the (holding Director Identification Number 02171823),
Company for the year ended 31st March, 2023 and be and is hereby appointed as a Non-Executive
the Reports of the Board of Directors and the Auditors Director with effect from 26th June, 2023, liable to
retire by rotation, in the casual vacancy that is being
thereon.
caused by the resignation of Mr. Shigeki Takahara
2. To declare a dividend of ₹2.70 (270%) per Equity (holding Director Identification Number 08736626).
Share of the nominal value of ₹1 each for the year RESOLVED FURTHER that the Board of Directors
ended 31st March, 2023. and/or Key Managerial Personnel of the Company be
and are hereby authorised to do all such acts, deeds,
3. To appoint a Director in place of Mr. Hitoshi Nishibayashi, matters and things as may be deemed necessary,
Non-Executive Director (holding Director Identification desirable, proper or expedient for the purpose of giving
Number 03169150), who retires by rotation and being effect to the above resolution.”
eligible, offers himself for re-appointment.
For and on behalf of the Board
Special Business:
P. P. Shah
4. o consider and, if thought fit, to pass the following
T Chairman
Resolution as an Ordinary Resolution: Mumbai, 8th May, 2023
“RESOLVED that pursuant to the provisions of
Section 148 and other applicable provisions, if NOTES:
any, of the Companies Act, 2013, read with the 1.
In compliance with the Circular No. 10/2022 dated
Companies (Audit and Auditors) Rules, 2014 and 28th December, 2022 read with Circular Nos. 14/2020
Companies (Cost Records and Audit) Rules, 2014 dated 8th April, 2020, 17/2020 dated 13th April, 2020,
(including any statutory amendment or modification 20/2020 dated 5th May, 2020, 02/2021 dated
or re-enactment thereof, for the time being in force), 13th January, 2021, 21/2021 dated 14th December, 2021
the remuneration of the Cost Auditor, D. C. Dave and all other relevant Circulars (“MCA Circulars”)
& Co., Cost Accountants (Firm Registration No. issued by the Ministry of Corporate Affairs (“MCA”)
000611), to conduct the audit of the cost records and Circular No. SEBI/HO/CFD/PoD-2/P/CIR/2023/4
of the Company for the financial year ending dated 5th January, 2023 (“SEBI Circular”) issued by
the Securities and Exchange Board of India (“SEBI”)
31st March, 2024, as recommended by the Audit
and relevant provisions of the Companies Act, 2013
Committee and approved by the Board of Directors, (“the Act”) and Securities and Exchange Board of India
be and is hereby ratified. (Listing Obligations and Disclosure Requirements)
RESOLVED FURTHER that the Board of Directors Regulations, 2015 (“SEBI Listing Regulations”), the
and/or Key Managerial Personnel of the Company be Annual General Meeting (“AGM”) will be held without
and are hereby authorised to do all such acts, deeds, the physical presence of Shareholders at a common
venue.
matters and things as may be deemed necessary,
desirable, proper or expedient for the purpose of giving In this Annual Report, the connotation of “Members”
effect to the above resolution.” and “Shareholders” is the same.
128
Notice 103rd Annual Report 2023

Accordingly, in compliance with the applicable or before Tuesday, 20th June, 2023, through e-mail on
provisions of the Act read with the said Circulars and [email protected]. The same will be replied by/on
SEBI Listing Regulations, the Company has decided behalf of the Company suitably.
to convene its 103rd AGM through VC/OAVM and
the Members can attend and participate in the AGM 7. In line with the relevant Circulars issued by the MCA
through VC/OAVM. and SEBI, the Annual Report including Notice of the
103rd AGM of the Company inter alia indicating the
2.
Explanatory Statement pursuant to Section 102 of process and manner of e-voting is being sent by
the Act relating to Item nos. 4 and 5 of the Notice e-mail, to all the Shareholders whose e-mail IDs are
of the 103rd AGM, which is considered to be registered with the Company / Depository Participant(s)
unavoidable by the Board of Directors of the Company, for communication purposes to the Shareholders and
is annexed hereto. Also, relevant details in respect of to all other persons so entitled.
Directors seeking appointment / re-appointment at
the AGM, in terms of Regulation 36(3) of the SEBI Further, in terms of the applicable provisions of the
Listing Regulations and Clause 1.2.5 of Secretarial Act, SEBI Listing Regulations read with the relevant
Standard - 2 on General Meetings are also annexed to Circulars issued by MCA and SEBI, the Annual Report
this Notice. including Notice of the 103rd AGM of the Company will
also be available on the website of the Company at
3.
Pursuant to the provisions of the Act, a Member www.nerolac.com. The same can also be accessed
entitled to attend and vote at the AGM is entitled to from the website of the Stock Exchanges i.e. BSE
appoint a proxy to attend and vote on his/her behalf Limited at www.bseindia.com and National Stock
and the proxy need not be a Member of the Company. Exchange of India Limited at www.nseindia.com and
However, since this AGM is being held through on the website of National Securities Depository
VC/OAVM, whereby physical attendance of Members Limited (“NSDL”) at https://www.evoting.nsdl.com.
has been dispensed with and in line with the
relevant Circulars, THE FACILITY TO APPOINT A 8. Voting through electronic means
PROXY TO ATTEND AND CAST VOTE FOR THE Pursuant to the provisions of Section 108 of the Act
SHAREHOLDER IS NOT MADE AVAILABLE FOR read with Rule 20 of the Companies (Management
THIS AGM and hence the Proxy Form and Attendance and Administration) Rules, 2014 (as amended) and
Slip are not annexed to this Notice. Regulation 44 of SEBI Listing Regulations and the
However, in terms of the provisions of Sections 112 relevant Circulars issued by MCA, the Company is
and 113 of the Act read with the relevant Circulars, providing facility of e-voting to its Members in respect of
Corporate Members are entitled to appoint their the business to be transacted at the AGM by electronic
authorized representatives to attend the AGM through means. For this purpose, the Company has entered
VC/OAVM on their behalf and participate thereat, into an agreement with NSDL for facilitating voting
including cast votes by electronic means (details of through electronic means, as the authorized agency.
which are provided separately, hereinbelow). Such The facility of casting votes by a member using remote
Corporate Members are requested to refer ‘General e-voting system as well as e-voting on the date of the
Guidelines for Shareholders’ provided herein below, AGM will be provided by NSDL.
for more information. Further, in accordance with Section 108 of the Act
4.
The Members can join the AGM through the read with Rule 20 of the Companies (Management
VC/OAVM mode 30 minutes before the scheduled and Administration) Rules, 2014 (as amended), the
time of the commencement of the Meeting by following Company has fixed Monday, 19th June, 2023 as the
the procedure mentioned in the Notice. The facility of “cut-off date” to determine the eligibility to vote by
participation at the AGM through VC/OAVM will be remote e-voting or e-voting at the AGM. A person
made available for 1000 members on first come first whose name is recorded in the Register of Members
served basis. This will not include large Shareholders or in the Register of Beneficial Owners maintained by
(Shareholders holding 2% or more shareholding), the Depositories as on the cut-off date, i.e. Monday,
Promoters, Institutional Investors, Directors, 19th June, 2023, shall be entitled to avail the facility of
Key Managerial Personnel, the Chairpersons of the remote e-voting or e-voting at the AGM.
Audit Committee, Nomination and Remuneration Only those Shareholders, who will be present at the
Committee and Stakeholders’ Relationship Committee, AGM through VC/OAVM facility and who would not
Auditors etc. who are allowed to attend the AGM without have cast their vote by remote e-voting prior to the
restriction on account of first come first served basis. AGM and are otherwise not barred from doing so, shall
5. The attendance of the Members attending the AGM be eligible to vote through e-voting at the AGM.
through VC/OAVM will be counted for the purpose of 9.
The Company has appointed Mr. J. H. Ranade,
reckoning the quorum under Section 103 of the Act. Membership No. F4317 & Certificate of Practice No.
6.
The Shareholders, seeking any information with 2520 or failing him Mr. Sohan J. Ranade, Membership
regard to the accounts or any matter to be placed at No. A33416 & Certificate of Practice No. 12520 or
the AGM, are requested to write to the Company on failing him Ms. Tejaswi Jogal, Membership No. A29608
129
& Certificate of Practice No. 14839 (anyone of them),

Login method for Individual shareholders
being Partners of JHR & Associates, Company holding securities in demat mode is given below:
Secretaries in practice, as the Scrutinizer to scrutinize
the remote e-voting and the e-voting at the AGM in a fair Type of Login Method
and transparent manner. shareholders
HE INSTRUCTIONS FOR MEMBERS FOR REMOTE
T Individual 1. Existing IDeAS user can visit the
E-VOTING AND JOINING GENERAL MEETING ARE Shareholders e-Services website of NSDL viz.
AS UNDER:- holding securities eservices.nsdl.com either on
The remote e-voting period begins on Thursday, in demat mode with a Personal Computer or on a
22nd June, 2023 at 9:00 a.m. and ends on Sunday, NSDL. mobile. On the e-Services home
25th June 2023 at 5:00 p.m. The remote e-voting page click on the “Beneficial
module shall be disabled by NSDL for voting Owner” icon under “Login”
thereafter. The Members, whose names appear
which is available under ‘IDeAS’
in the Register of Members / Beneficial Owners
as on the record date (cut-off date) i.e. Monday, section, this will prompt you to
19th June, 2023, may cast their vote electronically. enter your existing User ID and
The voting right of shareholders shall be in Password. After successful
proportion to their share in the paid-up equity authentication, you will be able
share capital of the Company as on the cut-off to see e-voting services under
date, being Monday, 19th June, 2023. A person Value added services. Click on
who is not a Member as on the cut-off date should
“Access to e-voting” under
treat this Notice for information purpose only.
e-voting services and you will
ow do I vote electronically using NSDL e-voting
H be able to see e-voting page.
system? Click on company name or
The way to vote electronically on NSDL e-voting system e-voting service provider
consists of “Two Steps” which are mentioned below: i.e. NSDL and you will be re-
directed to e-voting website
Step 1: Access to NSDL e-voting system
of NSDL for casting your vote
A) ogin method for e-voting and joining virtual
L during the remote e-voting
meeting for Individual shareholders holding period or joining virtual meeting
securities in demat mode & voting during the meeting.
In terms of SEBI circular dated 9th December,
2020 on e-voting facility provided by Listed 2. If you are not registered for IDeAS
Companies, individual Shareholders holding e-Services, option to register is
securities in demat mode are allowed to vote available at https://eservices.
through their demat account maintained with nsdl.com. Select “Register
Depositories and Depository Participant(s). Online for IDeAS Portal” or click
Shareholders are advised to update their mobile at https://eservices.nsdl.com/
number and email ID in their demat accounts in
SecureWeb/IdeasDirectReg.jsp
order to access e-voting facility.
130
Type of Login Method Type of Login Method

shareholders shareholders
3.
Visit the e-voting website of Individual 1.
Users who have opted for
Shareholders CDSL Easi / Easiest facility,
NSDL. Open web browser by
holding securities can login through their existing
typing the following URL: https:// in demat mode with User ID and Password. Option
www.evoting.nsdl.com/ either on CDSL will be made available to reach
a Personal Computer or on a e-voting page without any
mobile. Once the home page further authentication. The
of e-voting system is launched, users to login Easi /Easiest are
requested to visit CDSL website
click on the icon “Login” which
www.cdslindia.com and click on
is available under ‘Shareholder/ login icon & New System Myeasi
Member’ section. A new screen Tab and then use your existing
will open. You will have to enter my easi username & password.
your User ID (i.e. your sixteen 2. After successful login the Easi /
digit demat account number Easiest user will be able to
held with NSDL), Password/ see the e-voting option for
OTP and a Verification Code eligible companies where the
evoting is in progress as per
as shown on the screen. After
the information provided by
successful authentication, you company. On clicking the evoting
will be redirected to NSDL option, the user will be able to
Depository site wherein you see e-voting page of the e-voting
can see e-voting page. Click service provider for casting your
on company name or e-voting vote during the remote e-voting
period or joining virtual meeting
service provider i.e. NSDL
& voting during the meeting.
and you will be redirected Additionally, there is also links
to e-voting website of NSDL provided to access the system
for casting your vote during of all e-voting Service Providers,
the remote e-voting period or so that the user can visit the
e-voting service providers’
joining virtual meeting & voting
website directly.
during the meeting.
3. If the user is not registered for
Easi/Easiest, option to register is
4. Shareholders/Members can
available at CDSL website www.
also download NSDL Mobile cdslindia.com and click on login
App “NSDL Speede” facility & New System Myeasi Tab and
by scanning the QR code then click on registration option.
mentioned below for seamless 4.
Alternatively, the user can
directly access e-voting page
voting experience.
by providing demat account
number and PAN from a
e-voting link available on
w w w. c d s l i n d i a . c o m - h o m e
page. The system will
authenticate the user by
sending OTP on registered
Mobile & Email as recorded
in the Demat Account. After
successful authentication, user
will be able to see the e-voting
option where the evoting is in
progress and also be able to
directly access the system of all
e-voting Service Providers.
131
3. A new screen will open. You will have to enter

Type of Login Method
your User ID, your Password/OTP and a
shareholders
Verification Code as shown on the screen.
Individual You can also login using the login
Alternatively, if you are registered for NSDL
Shareholders credentials of your demat account
eservices i.e. IDeAS, you can log-in at
(holding securities through your Depository Participant
https://eservices.nsdl.com/ with your existing
in demat mode) registered with NSDL/CDSL for
IDeAS login. Once you log-in to NSDL
login through e-voting facility. Upon logging in,
eservices after using your log-in credentials,
their depository you will be able to see e-voting
click on e-voting and you can proceed to
participants option. Click on e-voting option, you
Step 2 i.e. Cast your vote electronically.
will be redirected to NSDL/CDSL
Depository site after successful 4. Your User ID details are given below :
authentication, wherein you can see
e-voting feature. Click on company Manner of holding shares Your User ID is:
name or e-voting service provider i.e. Demat (NSDL or CDSL)
i.e. NSDL and you will be redirected or Physical
a) For Members who 8 Character DP ID followed
to e-voting website of NSDL for
hold shares in demat by 8 Digit Client ID
casting your vote during the remote account with NSDL. For example if your DP ID
e-voting period or joining virtual
is IN300*** and Client ID is
meeting & voting during the meeting. 12****** then your user ID is
Important note: Members who are unable to retrieve User IN300***12******.
b) For Members who 16 Digit Beneficiary ID
ID/ Password are advised to use ‘Forget User ID’ and ‘Forget
hold shares in demat
Password’ option available at above mentioned website. account with CDSL. For example if your
Beneficiary ID is
Helpdesk for Individual Shareholders holding securities 12************** then your
in demat mode for any technical issues related to login User ID is 12**************
through Depositories i.e. NSDL and CDSL. c) For Members holding EVEN Number followed by
shares in Physical Folio Number registered
Login type Helpdesk details Form. with the Company
Individual Members facing any technical
For example if folio number
Shareholders holding issue in login can contact NSDL is 001*** and EVEN is
securities in demat helpdesk by sending a request 123922 then User ID is
mode with NSDL at [email protected] or call 123922001***
at 022-4886 7000 and
5. Password details for shareholders other than
022-2499 7000
individual Shareholders are given below:
Individual Members facing any technical
Shareholders holding issue in login can contact CDSL a) If you are already registered for e-voting,
then you can use your existing password
securities in demat helpdesk by sending a request at
to login and cast your vote.
mode with CDSL [email protected]
or contact at toll free b) If you are using NSDL e-voting system
no. 1800 22 55 33 for the first time, you will need to
retrieve the ‘initial password’ which was
B)
Login Method for e-voting and joining communicated to you. Once you retrieve
virtual meeting for shareholders other than your ‘initial password’, you need to enter
individual Shareholders holding securities the ‘initial password’ and the system will
in demat mode and Shareholders holding force you to change your password.
securities in physical mode. c) How to retrieve your ‘initial password’?
How to Log-in to NSDL e-voting website? (i)
If your e-mail ID is registered in
your demat account or with the
1.
Visit the e-voting website of NSDL. Open
Company, your ‘initial password’ is
web browser by typing the following
communicated to you on your e-mail
URL: https://www.evoting.nsdl.com/ either on
ID. Trace the e-mail sent to you from
a Personal Computer or on a mobile. NSDL from your mailbox. Open the
2. nce the home page of e-voting system is
O e-mail and open the attachment
launched, click on the icon “Login” which is i.e. a .pdf file. The password to open
available under ‘Shareholder/Member’ section. the .pdf file is your 8 digit Client ID
132
for NSDL account, last 8 digits of 4.

Cast your vote by selecting appropriate options
Client ID for CDSL account or Folio i.e. assent or dissent, verify/modify the number of
Number for shares held in physical shares for which you wish to cast your vote and click
form. The .pdf file contains your on “Submit” and also “Confirm” when prompted.
‘User ID’ and your ‘initial password’. 5. pon confirmation, the message “Vote cast
U
(ii)
If your e-mail ID is not registered, successfully” will be displayed.
please follow steps mentioned 6. You can also take the printout of the votes cast
below in process for those by you by clicking on the print option on the
shareholders whose e-mail IDs confirmation page.
are not registered.
7. Once you confirm your vote on the resolution, you
6.
If you are unable to retrieve or have not will not be allowed to modify your vote.
received the “initial password” or have
forgotten your password: General Guidelines for Shareholders
1.
Institutional Shareholders (i.e. other than
Click on “Forgot User Details/
a)
individuals, HUF, NRI etc.) are required to send
Password?” (If you are holding
scanned copy (PDF/JPG format) of the relevant
shares in your demat account with
Board Resolution/ Authority letter with attested
NSDL or CDSL) option available on
specimen signature of the duly authorized
www.evoting.nsdl.com.
signatory(ies) who are authorized to vote, to the
“Physical User Reset Password?”
b) Scrutinizer by e-mail to [email protected] with a
(If you are holding shares in copy marked to [email protected]. Institutional
physical mode) option available on shareholders (i.e. other than individuals, HUF,
www.evoting.nsdl.com. NRI etc.) can also upload their Board Resolution/
c) If you are still unable to get the password Power of Attorney / Authority Letter by clicking
by aforesaid two options, you can on “Upload Board Resolution / Authority Letter”
send a request at [email protected] displayed under “e-voting” tab in their login.
mentioning your demat account number/ 2.
It is strongly recommended not to share your
folio number, your PAN, your name, password with any other person and take utmost
your registered address etc. care to keep your password confidential. Login
d)
Members can also use the OTP (One to the e-voting website will be disabled upon
five unsuccessful attempts to key in the correct
Time Password) based login for casting
password. In such an event, you will need to go
the votes on the e-voting system of NSDL.
through the “Forgot User Details/Password?” or
7. fter entering your password, tick on Agree
A “Physical User Reset Password?” option available
to “Terms and Conditions” by selecting on the on www.evoting.nsdl.com to reset the password.
check box.
3. In case of any queries, you may refer the Frequently
8. Now, you will have to click on “Login” button. Asked Questions (FAQs) for Shareholders and
9. After you click on the “Login” button, Home e-voting user manual for Shareholders available
page of e-voting will open. at the download section of www.evoting.nsdl.com
or call on.: 022 - 4886 7000 and 022 - 2499 7000

Step 2: Cast your vote electronically and join or send a request to Ms. Pallavi Mhatre, Senior
General Meeting on NSDL e-voting system. Manager - NSDL at [email protected]
How to cast your vote electronically and join

Process for those Shareholders whose e-mail
General Meeting on NSDL e-voting system? IDs are not registered with the depositories for
procuring User ID and Password and registration
1. After successful login at Step 1, you will be able of e-mail IDs for e-voting for the resolutions set out
to see all the companies “EVEN” in which you in this Notice:
are holding shares and whose voting cycle and
General Meeting is in active status. 1.
If your e-mail address is not registered with
the Depository Participant(s) (if shares held in
2. Select “EVEN” of company for which you wish to electronic form)/ Company (if shares held in
cast your vote during the remote e-voting period physical form), you may register on or before
and casting your vote during the General Meeting. 16th June, 2023, to receive the Notice of the AGM
For joining virtual meeting, you need to click on along with the Annual Report by completing the
“VC/OAVM” link placed under “Join Meeting”. process as under:
3.
Now you are ready for e-voting as the Voting a.
Visit the link https://tcpl.linkintime.co.in/
page opens. EmailReg/Email_Register.html.
133
b. S
elect the name of the Company ‘Kansai Nerolac 3. Members who have voted through remote e-voting
Paints Limited’ from dropdown. will be eligible to attend the AGM. However, they
c. E
nter details in respective fields such as DP will not be eligible to vote at the AGM.
ID and Client ID (if shares held in electronic 4. The details of the person who may be contacted
form)/Folio no. and Certificate no. (if shares for any grievances connected with the facility for
held in physical form), shareholder name, PAN, e-voting on the day of the AGM shall be the same
mobile no. and e-mail ID. person mentioned for remote e-voting.
d. S
ystem will send One Time Password (‘OTP’)
on mobile no. and e-mail ID.
I NSTRUCTIONS FOR MEMBERS FOR ATTENDING
e. Enter OTP received on mobile no. and e-mail ID. THE AGM THROUGH VC/OAVM ARE AS UNDER:
f. Click on submit button. 1. Member will be provided with a facility to attend

g. S
ystem will then confirm the recording of the the AGM through VC/OAVM through the NSDL
e-mail address for receiving Notice of the AGM e-voting system. Members may access by
along with the Annual Report. following the steps mentioned above for Access
to NSDL e-voting system. After successful login,
In case shares are held in physical mode please you can see link of “VC/OAVM” placed under “Join
provide folio no., name of shareholder, scanned meeting” menu against company name. You are
copy of the share certificate (front and back), PAN requested to click on VC/OAVM link placed under
(self attested scanned copy of PAN card), AADHAR Join Meeting menu. The link for VC/OAVM will be
(self attested scanned copy of Aadhar Card) by available in Shareholder/Member login where the
e-mail to [email protected] for procuring the User EVEN of Company will be displayed. Please note
ID and Password for e-voting. that the members who do not have the User ID and
2. In case shares are held in demat mode, please Password for e-voting or have forgotten the User ID
provide DP ID Client ID (16 digit DP ID + and Password may retrieve the same by following
Client ID or 16 digit beneficiary ID), Name, the remote e-voting instructions mentioned in the,
client master or copy of Consolidated Account Notice to avoid last minute rush.
statement, PAN (self attested scanned copy 2.
Members are encouraged to join the Meeting
of PAN card), AADHAR (self attested scanned through Laptops for better experience.
copy of Aadhar Card) to [email protected] for
3. urther, the Members will be required to allow
F
procuring the User ID and Password for e-voting.
camera and use internet with a good speed to
If you are an individual Shareholder holding
avoid any disturbance during the Meeting.
securities in demat mode, you are requested to
refer to the login method explained at step 1 (A) 4.
Please note that participants connecting from
i.e. Login method for e-voting and joining Mobile Devices or Tablets or through Laptop
virtual meeting for individual Shareholders connecting via mobile hotspot may experience
holding securities in demat mode. audio/video loss due to fluctuation in their
respective network. It is therefore recommended

THE INSTRUCTIONS FOR MEMBERS FOR to use stable Wi-Fi or LAN connection to mitigate
e-VOTING ON THE DAY OF THE AGM ARE AS any kind of aforesaid glitches.
UNDER:-
5.
Shareholders who would like to express their
1. The procedure for e-voting on the day of the AGM views or ask questions during the AGM may
is same as the instructions mentioned above for register themselves as a speaker by sending a
remote e-voting. request from their registered e-mail ID mentioning
2.
Only those Members/Shareholders, who will be their name, DP ID and Client ID/Folio Number,
present at the AGM through VC/OAVM facility PAN, mobile number at [email protected]
and have not casted their vote on the Resolutions from Friday, 16th June, 2023 (from 9.00 a.m.)
through remote e-voting and are otherwise not to Thursday, 22nd June, 2023 (upto 5.00 p.m.).
barred from doing so, shall be eligible to vote Those Members who have registered themselves
through e-voting system at the AGM. as a speaker will only be allowed to express
134
their views / ask questions during the AGM. The 11. Dividend
Company reserves the right to restrict the number
(i) The Board has recommended a dividend of 270%
of speakers depending on the availability of time
(` 2.70 per share) for the financial year ended
for the AGM. Further, a facility will be provided to
31st March, 2023 as compared to total dividend of
the Shareholders attending the meeting through
225% (` 2.25 per share) paid for the financial year
VC/OAVM on 26th June, 2023, whereby they can
ended 31st March, 2022.
pose questions concurrently, during the proceeding
of the Meeting. (ii)
The Register of Members and Share Transfer
books of the Company will remain closed from
Other Information Friday, 26th May, 2023 to Tuesday, 30th May, 2023
(both days inclusive), for the purpose of AGM and

Any person holding shares in demat or physical form
Dividend. The Dividend, if declared, will be payable
and non-individual Shareholder who acquires shares
on or after Friday, 30th June, 2023, to those
of the Company and becomes a Member of the Company
Shareholders whose names are registered as such
after sending of this Notice and holding shares in demat
in the Register of Members of the Company as on
mode as on the cut-off date may refer the instructions
Thursday, 25th May, 2023 and to the beneficiary
mentioned in “Step 1: Access to NSDL e-voting system”.
holders as per the beneficiary list as on Thursday,
Scrutinizer’s Report and declaration of results: 25th May, 2023 provided by the Depositories,
NSDL and CDSL, subject to deduction of tax at
(i) The Scrutinizer shall, after the conclusion of e-voting source where applicable.
at the AGM, first count the votes cast vide e-voting
at the AGM and thereafter shall unblock the votes (iii) Payment of Dividend through electronic means
cast through remote e-voting, in the presence of (a)
The Company provides the facility to the
at least two witnesses not in the employment of Shareholders for remittance of Dividend
the Company. He shall submit a Consolidated directly in electronic mode through National
Scrutinizer’s Report of the total votes cast in Automated Clearing House (NACH).
favour or against, not later than 48 (forty eight) Shareholders holding shares in physical
hours of the conclusion of the AGM, to the form and desirous of availing this facility
Chairman or a person authorized by him in writing, of electronic remittance are requested to
who shall countersign the same and declare the provide their latest bank account details (Core
result of the voting forthwith. Banking Solutions Enabled Account Number,
(ii)
The results declared along with the Scrutinizer’s 9 digit MICR and 11 digit IFSC Code), along
Report shall be placed on the Company’s website with their Folio Number, to the Company
at www.nerolac.com and on the website of or TCPL. Shareholders holding shares in
NSDL at www.evoting.nsdl.com. The Company shall dematerialized form are requested to provide
simultaneously forward the results to BSE Limited the said details to their respective Depository
and National Stock Exchange of India Limited, Participant(s).
where the shares of the Company are listed. In case the Company is unable to pay the
Dividend to any Shareholder by the electronic
10.
The Shareholders who are holding shares in
mode, due to non-availability of their latest
dematerialized form and have not yet registered
bank account details (Core Banking Solutions
their e-mail IDs with their Depository Participant(s)
Enabled Account Number, 9 digit MICR and
are requested to register their e-mail ID at the
11 digit IFSC Code), the Company shall
earliest, to enable the Company to use the same for
dispatch the dividend warrant / cheque to
serving documents to them electronically, hereafter.
such Shareholder by post.
Shareholders holding shares in physical form may
kindly provide their e-mail ID to the Registrar and Share (b) Shareholders holding shares in dematerialized
Transfer Agents of the Company viz. TSR Consultants form are hereby informed that bank particulars
Private Limited (“TCPL”), by sending an e-mail at registered against their respective depository
[email protected]. The support of the accounts will be used by the Company for
Shareholders for the ‘Green initiative’ is solicited. payment of Dividend. The Company / TCPL
135
cannot act on any request received directly (“IEPF”) established by the Central Government.
from the Shareholders holding shares in Accordingly, the unpaid/ unclaimed dividend for
dematerialized form for any change of bank the financial year 2014-15, has been transferred
particulars or bank mandates. Such changes by the Company to the IEPF. Those Shareholders
are to be advised only to the Depository who have not encashed their Dividends for the
Participant(s) of the Shareholders. financial year 2015-16 onwards are requested to
lodge their claims in that regard with the Company
(iv) Pursuant to Finance Act, 2020, dividend income or TCPL.
is taxable in the hands of Shareholders with effect
from 1st April, 2020 and the Company is required Further, in terms of the provisions of Section 124
to deduct tax at source from Dividend paid to the of the Act read with the Investor Education and
Shareholders at the prescribed rates. Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016 (“IEPF Rules”),
For the prescribed rates for various categories,
Equity Shares in respect of which dividend has not
the Shareholders are requested to refer to the
been paid or claimed for 7 (seven) consecutive
Finance Act, 2020 and amendments thereof. The
years or more from the date of declaration, are also
Shareholders are requested to update their PAN
required be transferred to an account viz. IEPF
with the Company / TCPL (in case of shares
Suspense Account, which is operated by the IEPF
held in physical mode) and their respective
Authority pursuant to the IEPF Rules. Accordingly,
Depository Participant(s) (in case of shares held in
in compliance with the aforesaid Rules, the
dematerialized form).
Company has already transferred Equity Shares on
A resident individual Shareholder with PAN and which Dividend remained unclaimed for 7 (seven)
who is not liable to pay income tax can submit a consecutive years starting from the financial year
yearly declaration in Form No. 15G/15H, to avail 2014-15 to the IEPF Suspense Account, after
the benefit of non-deduction of tax at source by providing necessary intimations to the relevant
e-mail to [email protected] Shareholders. Further, all Equity Shares of the
by 30th May, 2023. Shareholders are requested to Company on which dividend has not been paid or
note that in case their PAN is not registered, the tax claimed for 7 (seven) consecutive years or more,
will be deducted at a higher rate of 20%. shall be transferred by the Company to the IEPF
Resident Shareholders whose Dividend is liable from time to time.
for deduction of TDS at a concessional or Nil rate etails of unpaid/unclaimed dividend and Equity
D
as per Section 197 of the Income-tax Act, 1961 Shares transferred to IEPF for the financial year
can submit the certificate/letter issued by the 2014-15 are uploaded on the website of the
Assessing Officer, to avail the benefit of lower rate Company as well as on the website of the MCA.
of deduction or non-deduction of tax at source by No claim shall lie against the Company in respect
e-mail to [email protected] of unclaimed dividend amount and Equity Shares
by 30th May, 2023. transferred to the IEPF and IEPF Suspense
on-resident Shareholders can avail beneficial
N Account, respectively, pursuant to the IEPF Rules.
rates under tax treaty between India and their Shareholders can however claim both unclaimed
country of residence, subject to providing dividend amount and Equity Shares from the IEPF
the necessary documents i.e. No Permanent Authority by making an online application in web
Establishment and Beneficial Ownership Form IEPF-5, the details of which are available on.
Declaration, Tax Residency Certificate, Form www.iepf.gov.in.
10F, any other document which may be required 12. Members may please note that SEBI, vide its Circular
to avail the tax treaty benefits by sending an No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8
e-mail to [email protected]. dated 25th January, 2022, has mandated Listed
The aforesaid declarations and documents need to Companies to issue securities in demat form only while
be submitted by the Shareholders by 30th May, 2023. processing service requests viz. issue of duplicate
(v)
In terms of the provisions of Sections 124 and securities certificate; claim from Unclaimed Suspense
125 of the Act, Dividend which remains unpaid/ Account; renewal/exchange of securities certificate;
unclaimed for a period of 7 (seven) years from the endorsement; sub-division/splitting of securities
date of declaration is required to be transferred certificate; consolidation of securities certificates/
to the Investor Education and Protection Fund folios; transmission and transposition. Accordingly,
136
Shareholders are requested to make service requests ID, telephone/mobile numbers, PAN, mandates,
by submitting a duly filled and signed Form ISR–4, the nominations, power of attorney, bank details
format of which is available on the website of TCPL at (such as name of the bank and branch details, bank
www.tcplindia.co.in. It may be noted that any service account number, MICR code, IFSC code etc.),
request can be processed only after the folio is KYC with necessary documentary evidence, to their
compliant. SEBI, vide its notification dated 24th January, Depository Participant(s) in case the shares are held
2022, has mandated that all requests for transfer of by them in dematerialized form and to the Company/
securities including transmission and transposition TCPL in case the shares are held by them in
requests shall be processed only in dematerialised physical form.
form. In view of the same and to eliminate all risks
15. In terms of the provisions of Section 72 of the Act,
associated with physical shares and avail various
the facility for making nomination is available for the
benefits of dematerialisation, Members are advised
Shareholders in respect of the shares held by them.
to dematerialise the shares held by them in physical
Shareholders who have not yet registered their
form. Members can contact TCPL, for assistance in this
nomination are requested to register the same by
regard.
submitting Form No. SH-13. Shareholders holding
13.
SEBI has mandated the submission of Permanent shares in dematerialized form are requested to submit
Account Number (PAN) by every participant in the said details to their Depository Participant(s)
securities market. Shareholders holding shares in and the Shareholders holding shares in physical
dematerialized form are, therefore, requested to submit form, are requested to submit the said details to the
their PAN to the Depository Participant(s) with whom Company / TCPL.
they maintain their demat accounts. Shareholders 16. S
hareholders are requested to quote their Folio No.
holding shares in physical form should submit their PAN or DP ID - Client ID, as the case may be, in all
to the Company/ TCPL. correspondence with the Company / TCPL.
14. S
hareholders are requested to intimate changes, if 17. S
ince the AGM will be held through Video Conferencing/
any, pertaining to their name, postal address, e-mail Other Audio Visual Means, route map of venue of the
AGM is not attached to this Notice.
137
EXPLANATORY STATEMENT UNDER SECTION 102 OF THE COMPANIES ACT, 2013
ITEM NO. 4 Pursuant to the provisions of Section 161 of the Act, the
In accordance with the Companies (Cost Records and appointment of Mr. Chaudhari shall be subject to the approval
Audit) Rules, 2014, the Company is required to conduct of the Shareholders at the Annual General Meeting.
cost audit of its cost records pertaining to the products Considering his knowledge and rich experience in the field
falling under the product categories – Organic & Inorganic of operations management, manufacturing, supply chain
Chemicals, Ores & Mineral Products, Plastics and management, business development, sales management
Polymers, Rubbers and Allied Products & Insecticides or
and strategy, the skills, capabilities and proficiency
any other products required by the law, for the year ending
31st March, 2024. The products of the Company covered required for the role and pursuant to the recommendation
under the aforesaid categories are different types of of the Nomination and Remuneration Committee,
thinners, floor coating products, powder coating products & the Board has recommended the appointment of
hardeners, fungicidal solutions and construction chemicals. Mr. Chaudhari as a Non‑Executive Director of the Company,
with effect from 26th June, 2023, subject to the approval
The Board of Directors of the Company, based on of Shareholders of the Company. He shall be liable to retire
the recommendation of the Audit Committee, has approved by rotation.
the appointment of D. C. Dave & Co., Cost Accountants, as
the Cost Auditor for the aforesaid product categories for the The Company has received a notice in writing from a
financial year 2023-24 on a remuneration of ₹ 3,00,000 plus Member as per the provisions of Section 160 of the Act, to
GST and reimbursement of pocket expenses. propose the candidature of Mr. Chaudhari for the office of
the Non-Executive Director, to be appointed as such under
D. C. Dave & Co., Cost Accountants has also conveyed its
the applicable provisions of the Act and the Securities and
willingness to act as Cost Auditor of the Company for the year
ending 31st March, 2024. The eligibility and consent letter Exchange Board of India (Listing Obligations and Disclosure
will be available for inspection of the Shareholders through Requirements) Regulations, 2015.
electronic mode. Shareholders may write to the Company at Accordingly, it is proposed to appoint Mr. Chaudhari as a
[email protected] in that regard, by mentioning “Request Non‑Executive Director of the Company and the Ordinary
for Inspection” in the subject of the e-mail. Resolution as set out in Item no. 5 of the Notice seeks
In terms of Section 148(3) of the Companies Act, 2013 read approval of the Shareholders for the same.
with the Companies (Audit and Auditors) Rules, 2014, the A brief resume of Mr. Chaudhari is provided in the annexure
remuneration recommended by the Audit Committee for to the Notice.
the Cost Auditor and approved by the Board of Directors is
required to be ratified subsequently by the Shareholders. Mr. Pravin Digambar Chaudhari and his relatives can be
Hence, the Ordinary Resolution set out in Item no. 4 of the considered to be concerned or interested in the proposed
Notice seeks approval of the Shareholders for the same. Ordinary Resolution, as set out in Item no. 5, to the extent it
relates to the appointment of Mr. Chaudhari.
None of the Directors and/or Key Managerial Personnel
of the Company and/or their relatives, are in any way Also, Mr. Hitoshi Nishibayashi, Mr. Takashi Tomioka and
concerned or interested (financially or otherwise), in the Mr. Shigeki Tahara, Directors, being the nominees of
proposed Ordinary Resolution. Kansai Paint Co., Ltd., Japan, the promoter of the Company,
can be considered to be concerned or interested in the
The Board recommends ratification of the remuneration proposed Ordinary Resolution, as set out in Item no. 5, to
of the Cost Auditor, D. C. Dave & Co., Cost Accountants
the extent it relates to the appointment of a fellow nominee
(Firm Registration No. 000611), as recommended by the
Audit Committee and approved by the Board of Directors, of Kansai Paint Co., Ltd., Japan.
as set out in Item no. 4 of the Notice, for approval of the None of the other Directors and/or Key Managerial
Shareholders. Personnel of the Company and/or their relatives, are in any
way concerned or interested (financially or otherwise), in the
ITEM NO. 5 proposed Ordinary Resolution, as set out in Item no. 5.
Mr. Shigeki Takahara, Non-Executive Director (holding The Board recommends the appointment of
Director Identification Number 08736626) is resigning from Mr. Pravin Digambar Chaudhari as a Non-Executive Director
the Board of the Company with effect from 26th June, 2023. of the Company, as set out in Item no. 5 of the Notice, for
Pursuant to Section 161(4) of the Companies Act, 2013 approval of the Shareholders.
(“Act”) read with Article 114 of the Articles of Association of
the Company, the Board of Directors of the Company has, For and on behalf of the Board
on recommendation of the Nomination and Remuneration
Committee, appointed Mr. Pravin Digambar Chaudhari
(holding Director Identification Number 02171823) as the P. P. Shah
Non-Executive Director of the Company with effect from Chairman
26th June, 2023, in the casual vacancy that is being caused
by the resignation of Mr. Shigeki Takahara. Mumbai, 8th May, 2023
138
Annexure to the Notice

Details of the directors seeking appointment / re-appointment in the 103rd Annual General Meeting, as set out
in Item nos. 3 and 5 of this Notice, in terms of Regulation 36(3) of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 read with clause 1.2.5 of Secretarial Standard-2
on General Meetings
Name of Director Mr. Hitoshi Nishibayashi Mr. Pravin Digambar Chaudhari
Director Identification Number 03169150 02171823
Age 59 years 55 years
Qualifications and experience Mr. Hitoshi Nishibayashi is a graduate Mr. Pravin Digambar Chaudhari has a
from Osaka University of Foreign bachelor’s degree in engineering and
Studies, Faculty of English studies. He masters in management from Mumbai
joined Kansai Paint Co., Ltd., Japan University.
(“KPJ”) in April 1987. He has worked in
Mr. Chaudhari joined our Company as a
various divisions of KPJ and is presently
trainee in 1993 and was appointed as a
the Director of the Board, Managing
director on the Board in 2008. He was with
Executive Officer, Head of International
the Company till 2018. In 2018, he joined
Business Unit of KPJ. He was associated
Pidilite Industries to head their Pigment
with our Company in the capacity of a
business and industrial operations.
Non-Executive Director, for a period of
He has joined Kansai Paint Co., Ltd.,
about 4 years, during 2010 to 2014.
Japan as Managing Officer and Deputy
Chief of Corporate Production, Supply
Chain Management and Procurement in
April 2023.
He has rich knowledge and experience

in the field of Operations Management,
Manufacturing, Supply Chain
Management, Business Development,
Sales Management and Strategy.
Date of First Appointment 29th July, 2019 26th June, 2023
Directorships held in other public companies Nil Nil
(excluding this Company, foreign companies
and Section 8 companies)
Memberships/Chairmanships of committees Nil Nil
of other public companies #
Shareholding in the Company as on Nil Nil
31st March, 2023
* Mr. Hitoshi Nishibayashi and Mr. Pravin Digambar Chaudhari are nominees of Kansai Paint Co., Ltd., Japan, Promoter Company and they do
not hold any Equity Share of the Company in their personal capacity.
# In terms of the provisions of Regulation 26 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, Memberships/ Chairmanships in only two committees viz. Audit Committee and Stakeholders’ Relationship Committee are
considered.
Notes:
None of the directors are related to each other. However, Mr. Hitoshi Nishibayashi, Mr. Shigeki Takahara, Mr.Takashi Tomioka
and Mr. Pravin Digambar Chaudhari are nominees of Kansai Paint Co., Ltd., Japan, Promoter Company.
For other details such as the number of meetings of the Board attended during the year and remuneration drawn in respect
of the Directors, please refer to the Report on Corporate Governance which is a part of the Annual Report.
139
KANSAI NEROLAC PAINTS LIMITED STATUTORY REPORT
BOARD’S REPORT
Dear Members, KNPL, one of the industry’s most trusted brands, designs
solutions that protect, inspire, and touch lives every day.
The Directors of your Company are pleased to present the
Through our painting solutions, we provide ‘Beauty and
103rd Annual Report and the Audited Financial Statements
Protection’ to everything that a household uses on a daily
(Standalone and Consolidated) for the year ended
basis be it paints for homes (interior & exterior, wood finishes),
31st March, 2023 (“year under review / FY 2022-23”). The
automobiles (4-wheeler, 2-wheeler), consumer durables
section on Management Discussion and Analysis includes
(fans, microwaves, refrigerators, washing machine), personal
a review of the financial performance of the Company –
use articles (hair clips, artificial jewellery), transportation
Financial Highlights of the Company’s standalone financial
infrastructure (bridges, metro rail). This is why we say
results, key financial ratios and the dividend recommended
‘There is a little bit of Nerolac in everybody’s life’.
by the Directors. It also includes the particulars of the
subsidiaries of the Company including overseas subsidiaries People are at the core of KNPL’s strategy. KNPL prioritises
and their performance during the year under review. its employees, creating a culture of openness, collaboration,
and empowerment while emphasising employee well-being,
1. MANAGEMENT DISCUSSION growth, training, and engagement. It believes that happy
employees create differentiated outcomes in the workplace
AND ANALYSIS and marketplace.
INTRODUCTION In the Industrial business, the strategy is profitable growth,

premiumisation, network expansion and entry into new
Established in 1920, Kansai Nerolac Paints Limited (‘KNPL’) is a
segments. We leverage our global collaborations and
subsidiary of Kansai Paint Co., Ltd., Japan (‘KPJ’).
technology leadership to provide our customers with
Apart from its primary operations in India, KNPL operates sustainable solutions with an enhanced value proposition. In
in Nepal, Sri Lanka and Bangladesh through acquisitions the Decorative business, the strategy is to engage with all
and joint ventures. It is one of India’s largest Coatings stakeholders to provide innovative solutions. The Company
companies with leadership in industrial coatings. We have offers consumers technologically superior and differentiated
a sizeable market share in Performance coatings and a products under the brand ‘Paint+’. This year the Company
strong leadership position in Automotive and Powder coating has embarked on creating a new services offering and has
businesses. In Decorative, we are the 3rd largest paint player increased its connection with Influencers.
in the country. In recent years, we have gained good traction
KNPL has been aggressively augmenting its capacity over
in Auto Refinish, Wood finishes, Construction Chemicals and
the past few years to match the demands of its expanding
Adhesives.
product portfolio. The Company has committed investments
KNPL’s strong position is due to its continuous intellectual for a new plant in Vizag and in augmenting capacities in
and human capital investment. The Company’s access to existing plants.
global technology has helped provide Indian customers
We further plan to advance towards the future with the
with products and solutions that are unique, environmentally
purpose, vision and the brand promise of KNPL. Aiming to
friendly and cutting-edge.
140
Board’s Report 103rd Annual Report 2023
capture our customers’ admiration by diversifying our product quality, durability, and eco-friendliness. Manufacturers
range and showcasing our commitment as a responsible have invested substantially in research and development,
member of society through a strong focus on sustainability, creating innovative products such as low-VOC (Volatile
we continuously strive to evolve into a superior company, Organic Compound) paints, eco-friendly coatings, high-
shaping the future of Nerolac. performance solutions, and specialised applications. The
Indian Government’s focus on infrastructure development
INDUSTRY PROGRESS has significantly boosted the paint industry. Initiatives like
Smart Cities, affordable housing schemes, and infrastructure
Over the years, the Indian paint industry has achieved
projects such as roads, bridges, airports, and railways have
remarkable advancements marked by substantial growth
generated a surge in the demand for paints and coatings.
and progress. It has witnessed notable expansion in terms
Moreover, there has been a gradual transition from the
of market size and emerged as one of the leading paint
unorganised sector to organised players in the Indian paint
markets worldwide. The industry has experienced a double-
industry. Prominent paint companies have expanded their
digit Compound Annual Growth Rate (CAGR) in recent
distribution networks, established manufacturing facilities
years, driven by various factors, including urbanisation,
across the nation, and implemented robust marketing
growing disposable income, and increased construction and
strategies. This transition has increased organised players’
infrastructure projects. This continuous expansion can be
market share and raised the industry’s overall quality
attributed to the dynamic landscape of the Indian economy.
standards.
India’s per capita paint consumption has been steadily
With a growing emphasis on environmental sustainability,
increasing, driven by a growing middle class, changing
the paint industry in India has been actively adopting
lifestyles, and a shift towards better quality and decorative
eco-friendly practices. Manufacturers increasingly offer
paints. The rise in urbanisation has also led to an increased
low-VOC, lead-free, and water-based paints, considered
demand for paints and coatings in both residential and
more environmentally friendly. Several companies have
commercial sectors. The Indian paint industry has embraced
also obtained certifications for adhering to international
technological advancements, leading to improved product
environmental sustainability standards.
FINANCIALS
Financial Highlights
A summary of the Company’s standalone financial results for the year ended 31st March, 2023 (FY 2022-23) vis-a-vis standalone
financial results for the previous year (FY 2021-22) is as under:
(₹ in Crores)
FY 2022-23 FY 2021-22
Revenue from Operations 7,081.02 5,948.90

Profit before Depreciation, Interest, Exceptional item and Tax 793.89 647.34
Less: Depreciation and Amortisation 164.63 153.82
Profit Before Interest, Exceptional Item and Tax 629.26 493.52
Less: Interest 9.73 9.87
Less: Exceptional Item - (11.39)
Add: Other Income 30.83 32.86
Profit Before Tax 650.36 505.12
Less: Tax Expenses 163.93 130.79
Profit After Tax 486.43 374.33
Other Comprehensive Income 0.16 2.51
Total Comprehensive Income for the Year 486.59 376.84
141
Revenue from Operations for the year aggregated to PBT for the year was ₹ 650.36 Crores as compared to
₹ 7,081.02 Crores as compared to ₹ 5,948.90 Crores for the ₹ 516.51 Crores (before exceptional item) of the previous
previous year, reflecting a growth of 19.0%. year, reflecting a growth of 25.9% over the previous year. PAT
was higher at ₹ 486.43 Crores compared to ₹ 374.33 Crores,
Average Crude oil prices during the year increased from
reflecting growth of 29.9%.
USD 79.8/bbl to USD 92.6/bbl, a jump of 17% over the last
year. The currency further depreciated during the year, The Company did not accepted any deposits covered under
impacting raw material prices. Chapter V of the Companies Act, 2013, during the year.
Inflation which was very high at the beginning of the year There were no significant or material orders passed by any
started tapering downwards towards the second half of the Regulators, Courts or Tribunals against the Company which
year, which helped in some margin improvement. could impact its going concern status and the Company’s
operations in future.
The Company continued its efforts to control overheads,
and all departments worked on their tasks and achieved the There was no change in the nature of business during the
result. year. There were no material changes and commitments
affecting the financial position of the Company that occurred
During the period, the Company granted 11,92,792 restricted
between the end of the financial year of the Company to
stock units to eligible employees as determined by the
which the financial statements relate and the date of this
Nomination and Remuneration Committee of the Company.
Report.
Consequently, employee benefits expense includes a
provision of ₹ 3.75 Crores made towards Share-Based
Dividend
Payment Expense for the year ended 31st March, 2023.
The Board recommended a final dividend of 270% (₹ 2.70 per
PBDIT for the year was higher at ₹ 793.89 Crores compared
share) for the year ended 31st March, 2023, compared to a
to ₹ 647.34 Crores, reflecting a growth by 22.6%.
total dividend of 225% (₹ 2.25 per share) for the year ended
Depreciation for the year was ₹ 164.63 Crores, slightly higher 31st March 2022.
compared to the previous year.
Bonus
Other income was lower at ₹ 30.83 Crores as compared to
The Board has considered and approved the issue of
₹ 32.86 Crores in the previous year.
1 bonus equity share of the face value of ₹ 1 each against
2 equity shares of the face value of ₹ 1 each. This is subject to
shareholder’s approval.
Key Financial Ratios
Key Ratios FY 2022-23 FY 2021-22 Difference % change

Debtors Turnover ( No. of Days) 45 41 4 9.8%
Inventory Turnover ( No. of Days) 117 117 0 0.0%
Interest Coverage Ratio 82 66 16 24.2%
Current Ratio 2.85 2.91 -0.06 -2.1%
Debt Equity Ratio 0.02 0.02 0.0 0.0%
Operating Profit Margin ( % ) 11.2 10.9 0.3 2.8%
Net Profit Margin ( % ) 6.9 6.4 0.5 8.2%
Return on Equity ( % ) 11.1 9.1 2.0 22.0%
142
Distribution of Income 2.3% (2.2%) 0.8% (4.7%)

0.0% (0.2%) 6.1% (1.5%)
Materials
Manpower Cost
Operating and Other Expenses
2.3% (2.6%) 69.7% (69.0%)
Finance cost
Depreciation 0.1% (0.2%)
Exceptional Item
FY 2022-23
Corporate Tax 14.0% (14.4%)
Dividend
Retained Earning 4.7% (5.2%)
Figures in bracket are the corresponding

figures in respect of the previous year
Revenue from Operations ( ₹ Crores )
5,174 5,006 4,771 5,949 7,081
Profit ( ₹ Crores )
844*
788
794
725*
742
713
682
648*
650
517*
534
531
467
486
374
PBDIT
PBT
PAT

* Before Exceptional Item
143
Profitability (%)
Profitability Ratios are based on Net Sales
17.8*
15.8
15.3*
14.4
13.9
13.7
11.1*
11.2
11.3
10.7
9.1
8.8*
9.2
PBDIT
6.9
PBT
6.4
PAT
* Before Exceptional Item
Shareholders' Funds ( ₹ Crores ) Return on Equity (%)
3,424 3,783 4,077 4,171 4,607 14.3 14.8 13.5 9.1 11.1
Profit after tax divided by average shareholder’s equity
144
Return on Capital Employed (%) Basic Earnings Per Share (EPS)*
20.2 17.5 17.2 12.1 13.7 8.7 9.9 9.9 7.0 9.0
*EPS for all years has been calculated considering face value of
share of ₹ 1 Each
Market Capitalisation as on 31st March ( ₹ Crores ) Book Value Per Share as on 31st March* ( ₹ )
24,642 20,810 32,370 25,178 20,802 64 70 76 77 85
*Book Value of shares for all years has been calculated considering
face value of shares as ₹ 1 each
Dividend (%)
260 315 525 225 270
FY19 FY20 FY21# FY22* FY23

#
Includes interim dividend of 125% and special dividend of 200%
* Includes interim dividend of 125%
145
Subsidiaries and Consolidated Financial Operations in Sri Lanka

Statements The turnover of our subsidiary in Sri Lanka, Kansai Paints Lanka
In terms of the provisions of Securities and Exchange Board Private Limited, for the year was ₹ 26.73 Crores compared to
of India (Listing Obligations and Disclosure Requirements) ₹ 23.71 Crores during the previous year. The Company’s loss
Regulations, 2015 (“SEBI Listing Regulations”), the Board narrowed to ₹ 3.48 Crores during the year compared to a loss
approved a Policy for determining material subsidiaries. of ₹ 17.64 Crores in the previous year.
The same is also available on the website of the Company
at www.nerolac.com. Further, in terms of the said policy, the Operations in Bangladesh
Company does not have a material subsidiary. The turnover of our subsidiary in Bangladesh, Kansai Nerolac
Paints (Bangladesh) Limited for the year stood at ₹ 239.48
Indian Subsidiaries Crores compared to ₹ 230.54 Crores in the previous year.
Nerofix Private Limited EBDITA for the year improved to 2.2% from -1.4% on Y-O-Y
basis. The said subsidiary incurred a loss of ₹ 13.27 Crores
On 31st March, 2023, KNPL has entered into a Share
during the year compared to a loss of ₹ 22.41 Crores during
Purchase Agreement with Polygel Industries Private Limited
the previous year.
(Polygel), its Promoters and Nerofix Private Limited (Nerofix)
for acquisition of the remaining 40% of the total shareholding The consolidated financial statements of the Company as
of Nerofix from Polygel for cash consideration of ₹ 37 Crores. on 31st March, 2023, were prepared in accordance with
The said shares have been transferred to the Company on applicable Accounting Standards and form a part of this
the same date. Consequent to the said acquisition of shares, Annual Report. All the subsidiaries of the Company as on
Nerofix has become a wholly owned (100%) subsidiary of the 31st March, 2023, have been considered in the preparation
Company. of consolidated financial statements. Further a separate
statement in Form AOC-1, containing the salient features
of the respective financial statements of subsidiaries
of the Company, forms part of this Annual Report. Also,
Annual Audited Financial Statements of all subsidiaries of
Nerofix has become a wholly the Company are available on the Company’s website at
www.nerolac.com.
owned (100%) subsidiary of the
Company.
The turnover of Nerofix was at ₹ 146.80 Crores compared to
₹ 110.42 Crores in the previous year. EBDITA for the year grew
to 3.7% as compared to 1.7% of the previous year. Nerofix
achieved a profit of ₹ 0.10 Crores as compared to a loss of
₹ 3.69 Crores during the previous year.
Overseas Subsidiaries
Operations in Nepal
During the year, the turnover of KNP Japan Private

Limited, the subsidiary of our Company in Nepal, was at
₹ 81.16 Crores as compared to ₹ 84.00 Crores of the previous
year. EBDITA for the year decreased to 11.0% from 13.4% on
Y-O-Y basis. Profit After Tax stood at ₹ 7.04 Crores compared
to ₹ 9.08 Crores in the previous year.
146
SEGMENT-WISE PERFORMANCE
KNPL has only one segment of activity, namely ‘paints’, in Exterior: Suraksha + Nxt, Excel Anti peel Nxt
accordance with the definition of ‘Segment’ covered under
the Indian Accounting Standards (Ind AS) 108 on Operating
Segments. The performance of the Company is discussed in
Interior: Beauty Smooth Nxt
this Report.
MARKETING Primer: Premium Primer Nxt

Decorative Business
Overview
During FY 2022-23, Nerolac adopted a comprehensive Nerolac Excel Everlast 12 is a highly durable UV-resistant
approach and invested in several initiatives to enhance its water-based exterior emulsion with a self-cleaning property
relevance to more customers as well as improve its value that removes dust with rainwater. It resists diverse harsh
proposition. Premiumisation, Digitisation, Sustainability and weather conditions with excellent anti-algae performance
Convenience are some of the key elements of the Company’s and durability, fortified with ENCAP additives.
approach.
The emulsion top coat offer superior and long lasting
The Company’s growth strategy revolved around providing whiteness, excellent coverage, protection and durability,
a unique customer experience by introducing NXTGEN while the base coat primer provides better hiding and
painting and consultation services, enhanced engagement adhesion to the surface. It is suitable for use on a variety of
with painters, collaborating with Architects and Interior surfaces, including wood, metal, and plaster, and is available
Designers, upgrading its digital infrastructure, expanding into in both oil-based and water-based variants.
smaller cities, network expansion and offering a new range of
healthy home paints to enhance customer delight. Marketing and Brand Building
Product Proposition (Paint+) and New Product Launches We further built on our new brand expression Paint +
during the year by expanding the product portfolio with
Through its Paint+ offering, the Company positions its new launches. The products provided unique properties
offerings uniquely and identifies new product niches. Under using Japanese technology. We brought to life our Nerolac
Paint+ brand offering, the Company aims to offer customers jingle in our advertisements and communication to ensure
the best-in-class experience and continuously develops consumers relate to our brand legacy.
innovative products to enhance its premium and luxury
range. The unique offering can be in form of paint properties
like sheen, stretch, durability, warranty or the price point at
which it is offered.
New Launches in Premium Category:
The introduction of new products like ‘Impressions Kashmir’

and ‘Nerolac Excel Everlast 12’ in its healthy-homes
portfolio has increased the growth in the Premium category.
Impressions Kashmir is a high-end interior emulsion paint with
a unique no-smell feature, ultra-luxury sheen finish, and HD
colors. It uses Japanese technology and has high durability,
making it an ideal choice.
147
The Company used various channels to reach its target

audience, including TV commercials, print advertisements,
radio advertisements, outdoor hoardings, OTT platforms and
other online advertising. It also had a presence on marquee
events like IPL and Asia Cup on Star Sports, Indian Idol
on Sony TV and other regional properties to showcase its
products, building relationships with customers and ensuring
high brand visibility across key markets. The Company
launched a new TV commercial with Brand Ambassador
Ranveer Singh to promote Impressions range of products.
Social media platforms like YouTube, Facebook, Instagram

and Linkedin were leveraged to reach out to a larger and
relevant set of audience. Digital marketing was rightly used
to reach out to a large set of consumers at the country level
as well as to a very specific set of consumers in a particular
locality.
The Company’s website underwent a changeover to guide

the visitors better with improved SEO (Search Engine
Optimisation) capability. Detailed product portfolio and
offerings are available on the Company’s website and
continuous social media presence to engage with customers
and build brand awareness.
Consumer Services Nerolac’s NxtGen shoppe provides a unique and

NXTGEN programme is the Company’s move ahead to touch immersive experience for consumers, catering to all their
base with the customer to offer superior painting experience. home painting needs. This experiential centre offers a
The Company aims to provide a hassle-free and seamless comprehensive range of painting solutions, including an
painting service, ensuring customer satisfaction. NXTGEN extensive selection of paints, wood coating finishes, wall
Painting Services offers a range of services, including expert design inspirations, and waterproofing solutions. The aim is to
visits, site preparation, colour consultation, and application, assist consumers in making informed and efficient decisions
all delivered by a team of experienced professionals. The when it comes to choosing the right paint and colour for
services are now present in large number of cities in the their walls. The store features a personalised colour preview
country and consumers can avail this just by placing a request service, allowing customers to visualise and select colours
on our website or any of our ad campaigns on social media for both their interior and exterior walls. We have more than
platforms. During the year, the number of houses painted 40 stores nationwide and plan to expand this network further
were more than 20,000. in the upcoming year.
Nerolac’s NXTGEN Paint Consultancy services are one of Influencer Engagements

its kind in the industry. It provides professional advice and Influencer Management Team:
guidance on painting to customers. KNPL NXTGEN Paint
consultants have extensive knowledge and experience and During the year, the Company significantly grew its headcount
work closely with customers to provide tailored solutions that of Demand Generation Assistants (DGAs) covering a large
meet their specific needs. Additionally, they offer guidance number of cities. The DGAs are the first point of contact for
on application techniques and post-painting maintenance as painters and play a pivotal role in creating awareness of
well. The service was launched in one of the metro cities and product schemes and benefits. They played a critical role in
received quite a good response and positive feedback from expanding the Company’s reach to individual painters with
consumers who availed this service. customised value proposition. The sales structure to manage
the influencer programme at city, State and country level was
put in place.
148
Launch of Nerolac NXT Range: Wood Finishes
This range of products was designed and launched The Wood Finish business did extremely well during the
exclusively for NXTGEN dealers. During the year, 4 products year and more so in the premium segment. The wood finish
were launched in Nxt series in top coat and base coats: portfolio was expanded through the launch of a specialised
paint product called Nerolac Termiprotect, which provides
Pragati Program for Painters
long-lasting protection to wooden surfaces against termite
This is Nerolac’s flagship programme to engage with painters infestation. This easy-to-apply product is suitable for both
and contractors. The Company offers several benefits and interior and exterior surfaces. In addition, specialised products
schemes to painters through this programme. It has been such as Bio Coatings, which have Green Guard certification,
made more attractive with the DBT initiative, a Direct were also launched.
transfer of rewards to painters’ bank accounts in real time.
This has attracted more painters to this programme. During The ICRO range, a premium wood coating range comprising
the year, the Pragati app was enhanced with more features Polyester, Acrylics and Water-Based PU range, has now been
and ease of use. launched in South and East markets. The introduction of
ICRO colour dispensing and mixing machines has enabled
Also, more than 61,000 painters were imparted advanced
the promotion of pigmented products to end-consumers as
training in paint application through classroom sessions or
well as Architects & Interior Designers.
by using a Mobile Training Academy.
Construction Chemicals
Illuminati Program for Architect & Interior Designer
The construction chemicals category witnessed excellent
Nerolac launched its first edition of ‘Illuminati’ programme
growth during the year. The key growth drivers were
to capture the interest of leading professionals i.e., Architects
distribution network expansion, deeper engagement with
and Interior Designers (AIDs) vital to the industry. It promises
influencers and demand generation team for retail marketing.
to offer professionals future-ready technology in paints as
A dedicated technical support team was put in place for the
well as outstanding customer services. Best-in-class AIDs
project business. On the product side, the Company launched
were invited to be a part of this club. Members receive
Damp Lock and NoDamp+ under the Perma range. Nerolac
on-site consulting regarding paints and best practices
for its application online with their project requirements. Perma Damp Lock is one component ready-to-use pre-putty
The Company has also developed an app (LEAD) for this. application product that provides solution to waterproofing
Through the app, the user can get details about products problems like efflorescence and dampness. NoDamp+
and schemes, and register themselves and their site. is a PU Hybrid high-strength fibre reinforced elastomeric
waterproof membrane coating which provides up to 12
The programme has received a very good response from the years of waterproofing and up to 14o of surface temperature
Architect community.
reduction.
KNPL also forayed into the tile adhesive and customised

admixture category this year which has started to reap good
results.
Adhesive
KNPL was present in the Adhesive business through its

subsidiary Nerofix. During the year, KNPL acquired the
balance 40% of equity shares of its subsidiary company
Nerofix. With this, Nerofix became a wholly owned (100%)
subsidiary of the Company. The subsidiary has an adhesive
Illuminati Club ( Exclusive Club for Architects and Interior Designers) portfolio catering to the market’s retail and project segment.
During the year, the Adhesives business grew briskly, with

network strategies and person-power deployed starting to
reap results. Nerolac AquaSmart was launched in select
149
markets to establish KNPL’s presence in the premium adhesive a consumer is tracked across all stages of the lead life cycle
category. Strong carpenter-level activations have helped on the app.
improve preference for the brand. Our carpenter application,
which was launched in the previous year, has helped us
identify the right set of carpenters and have a more focused
approach towards each market. During the year, 50% more
carpenters were registered on our application compared to
the previous year, with a more than 80% retention rate.
Projects We are leveraging our digital

KNPL’s Projects business witnessed significant growth ecosystem to expand our service
during the year. We expanded our reach to more cities. The
offerings and better exchange of
Government, builders, and CHS segments have emerged
as the main contributors to B2B opportunities. KNPL has information with our stakeholders
increased its on-ground team presence to identify and
create a demand pipeline. They connect with contractors &
viz. End Consumer, Dealers,
customers across markets and establish strong relationships Painters & contractors, Architect &
with them. The team is equipped with various tools to drive
conversions. On the product side, the Super series range
Interior Designer.
of products was suitably modified to meet the customers’
specific requirements. Also, there was synergy created with We are also developing several tools to help our customers
the industrial products like floor coating and epoxy products, make the right choice – be it product selection, and scheme
wherever required. The integration of the construction enrollment, among others.
chemical and projects teams has positioned Nerolac as a
Industrial Business
complete solution provider with customers.
Overview
Distribution Network This year has been outstanding for our industrial coatings
Numerous initiatives were undertaken to strengthen business segment, witnessing tremendous growth and
the distribution network, effectively enhancing market success. Our unwavering focus on quality, cost, and delivery
penetration and serviceability. The Company has opened has made us the preferred supplier among major OEMs and
new dealerships and expedited the installation of CCD ancillaries. We are proud to say that our industrial business
machines to expand its presence in the market, particularly in segment has excelled in all segments, including automotive,
rural areas. In the financial year, the Company successfully performance coatings, and auto refinish. This remarkable
established a network of 31,000+ dealers. Additionally, the growth was achieved on the back of high industry demand,
distributor model employed by the Company enables further aggressive targeting of new businesses, premiumisation of
market penetration by allowing distributors to appoint sub- the product mix and expansion of the body shops network.
dealers directly and install CCD machines. These measures
collectively contribute to the Company’s increased market
presence in Tier II, Tier III, and rural markets, consequently
improving long-term serviceability and ensuring long-term
success.
Digital Ecosystem
KNPL has implemented a digital ecosystem, a web of

applications specially designed for all internal and external
stakeholders. The set of applications provides visibility across
the value chain. This visibility in real-time help us improve our
processes and drive efficiency to reach out to our consumers.
For example, an expression of interest generated online by
150
However, the cornerstone for any business and organisation As part of our commitment to sustainable solutions inline
is the leadership team’s vision, which has to formulate a with global trends in green manufacturing, we have
business strategy by integrating macroeconomic and market developed innovative products that reduce our carbon
inputs with Company strengths and delivering products and footprint and improve our customers’ environmental
performance that translate into profitability. performance. Many of our products are first in their class and
serve as benchmarks in their segment, thereby consolidating
We at KNPL have strengthened our leadership position in our leadership position in the Industrial segment. We are
the Industrial segment by investing in state-of-the-art R&D proud of our accomplishments and believe our sustainability
facilities, identifying multiple technical collaborations to commitment sets us apart from our competitors.
augment skills and capabilities, and expanding our body
shop network. We believe that these strategic initiatives As we move forward, we are excited about the opportunities
have enabled us to meet the industry’s growing demand and that lie ahead. Our branding and marketing efforts have also
maintain our market leadership position. emerged as a key area of focus. We participated in the 15th
CII India Surface Coating show as the principal sponsor, which
In the recent years, due to unprecedented material price allowed us to highlight our products and services alongside
inflation, the profitability of this business has taken a severe other paint, chemical, and equipment manufacturers. We plan
hit. Collaborative approach with customers to ensure price to continue to leverage our Japanese association for access
increases and a profitable product mix helped us improve our to superior technology, and also continue our investments
profitability. We worked with customers to provide solutions in R&D, technical collaborations, and marketing efforts
based on different technology platforms like High Solids, to maintain our market leadership position and meet the
Monocoat and Low Bake. Such technology platforms help evolving needs of our customers.
customers reduce their carbon footprint and move them
closer to their decarbonisation target.
151
Automotive Segment
Business Overview:
KNPL paints and coatings have the unique position of

segments such as seam sealer, underbody blacks, and alloy
featuring extensively across multiple vehicle segments,
wheels, as well as its alignment with Kansai Helios for entry
including passenger vehicles, two-wheelers, and commercial
into the fasteners coatings segment, has further bolstered
and electric vehicles, thereby reinforcing leadership position.
its position as a market trailblazer-leader. The Company has
Our competence to promptly align with and respond to
also successfully introduced a tin-free CED coating (heavy
strong market demand in the automotive industry has been
metal free) in the PV segment, furthering its commitment to
a driving force behind KNPL’s impressive performance this
providing green and sustainable solutions to its customers.
year, contributing to its exceptional performance. We have
been awarded the best supplier title from various OEMs Two Wheelers:
customers for our high service orientation and constantly
meeting customer expectations on quality. Also, KNPL’s In the two-wheeler segment, KNPL has achieved
focus on sustainable solutions and the development of unprecedented growth in FY 2022-23, which has enhanced
environmentally friendly products has earned its recognition its market share and established the Company as a trusted
as a responsible industry leader committed to developing supplier for its OEM customers. To meet the evolving needs
safer and sustainable products. With continued investments of its customers, KNPL introduced innovative coating
in R&D and technical collaborations, KNPL remains solutions that comply with E20 and E30, ensuring the
committed to maintaining its market leadership position and coating’s resistance to 20-30% ethanol blending in petrol,
further expanding its presence in the automotive sector. which is a formidable achievement laying the foundation
for many future innovations in this segment.
Passenger Vehicles:
KNPL’s commitment to sustainability is evident in its enhanced
As a market leader in the automotive industry, KNPL focus on the development of technologies to support green
achieved impressive growth in the passenger vehicle (PV) products and services, and significant investments in R&D
segment this year. With a healthy double-digit growth in capabilities back this commitment to provide innovative
value and volume, KNPL gained market share in this highly solutions in line with global trends for the changing needs
competitive segment, supported by a record number of of the automotive industry. The Company launched energy-
production by OEMs. efficient products that reduce the carbon footprint during the
use/application phase at the customer end. The Company’s
KNPL’s advanced R&D capabilities and numerous technical
two-wheeler segment leadership strategy focuses on
partnerships have enabled the Company to offer innovative
maintaining its position as a market leader by providing high-
solutions for meeting the evolving needs of the automotive
quality products and excellent customer service.
industry.
KNPL’s leadership strategy in the passenger vehicle

segment is centred on innovation, sustainability, and
strategic partnerships. KNPL’s recent foray into new
152
Commercial Vehicles and Tractors: Performance Coatings Segment

In addition to the remarkable growth achieved in the Business Overview:
two-wheeler segment, KNPL’s automotive business also
KNPL had a remarkable year, achieving substantial business
witnessed significant contributions from the commercial
growth during FY 2022-23. The Performance Coatings
vehicle and tractor segments. We have strengthened our
division of the Company expanded its basket of products and
position with major key accounts in these segments due
now provides a comprehensive range of coatings suitable
to our advanced R&D capabilities and numerous technical
for varied applications such as Powder Coatings, General
partnerships. Under this category, the Company launched
Industrial, and High-Performance coatings. KNPL caters to
energy-efficient products that reduce the carbon footprint of
customers across all market segments, from premium to
its products during the use/application phase at the customer
popular and economy. The Company’s diverse client base
end.
includes industries such as Drums & Barrels, PEB, Electrical
Electric Vehicles: appliances, construction equipment, and helmets. With a
wide range of coatings in its portfolio, KNPL ensures that it
As a significant player in the high-growth EV segment, KNPL can offer its customers an extensive selection of options that
has established a substantial presence across major OEMs meet their unique needs and preferences through its focus
and gained significant traction in market share. The Company on research and innovation.
has also focused aggressively on market penetration and
expanding its portfolio by introducing vibrant colours to stay Powder:
ahead of colour trends and meet its customers’ changing
KNPL achieved impressive business growth by focusing
preferences in the electric passenger vehicle and two-
relentlessly on the premiumisation of its products and
wheeler segments.
services and incremental sales despite facing an aggressive
market landscape. The Company’s commitment to quality
and customer satisfaction has enabled it to enter new and
competitive businesses, drive healthy sales numbers, and
enhance profitability.
With a formidable presence in OEMs, KNPL is now focussing

KNPL’s leadership position in the on securing more approvals. The Company has a resolute
EV segment is underpinned by commitment to delivering sustainable and environmentally
friendly products, and it is pursuing a focused strategy on
its commitment to innovation, premium products to achieve a profitable product mix.
sustainability, and meeting the KNPL has the unique privilege of its products being used
evolving needs of its customers. in some marquee projects, including the Mumbai Coastal
road, Bullet train, and Mumbai Trans Harbour Link, where it
uses a cutting-edge fluoro polymer-based system.
153
Liquid:
KNPL achieved impressive traction and success in the KNPL has developed two fully operational training setups at
liquid performance coating segment by delivering high- Hosur and Bawal. The training facility enhances the skill set
quality products catering to a wide range of industries, of body shop technical personnel, and the internal team. This
including construction, architecture, packaging coating, initiative will help to develop and maintain a high standard of
bridges and pipe coating, and transformer coatings. This technical knowledge with organised training programs. KNPL
year, KNPL introduced tinting machines and focused on has also improved its reach to customers through undertaking
premiumisation. In parallel, the Company also constantly Digital initiatives. The Company is committed to providing a
focussed on je-jigging its product portfolio by exiting non- digital experience to its customers to enhance the overall
profitable segments with a singular focus on improved customer experience. KNPL revamped the packaging across
profitability. KNPL’s B2B distribution channel played a key its range of products to improve visibility and create a more
role in driving sales in this segment, allowing the Company cohesive brand identity. KNPL has sustained and augmented
to reach a wider range of customers and deliver its products its leadership position in the Industrial coatings segment
with greater efficiency. backed by the Company’s market penetration focus fuelled
by innovation and training.
KNPL’s innovative product, Neropoxy Solvent Free
Coating for Water Pipeline Internal coatings, launched
recently has already shown remarkable success, driving
increased sales in the business segment. With its strong
foothold in this segment and technological synergy with KPJ
& Group companies, KNPL is well-positioned to maintain its
growth trajectory and continue to meet customers’ evolving
needs.
Auto Refinish
Business Overview
Despite being a late entrant in the Auto Refinish business,

KNPL has witnessed rapid growth over the past few years,
and the Company’s key focus now is to gain market share
and continue its strong growth trajectory. To achieve this,
the business strongly emphasised its body shop and
retail channels. The Company expanded its body shop
network through new wins and retention strategies. It
also established a strong presence for its PU and alkyd
range of products in the retail channel through dealer
engagement programs and secondary channel activities.
Focus areas and achievements:
KNPL introduced eight new products to address unmet

or untapped market segments and expand its range
of offerings. The division now has a complete range of
products to address the varying needs of the market, with
a focus on launching new products and staying in sync with
the latest technological and usage trends to improve and
expand distribution.
154
RESEARCH & DEVELOPMENT Development in Automotive Coatings:

(R&D) KNPL’s Automotive paints division benefits from its strong in-
house R&D expertise and support from Kansai Paint Japan,
Overview
giving it a competitive edge. The R&D team collaborates
KNPL’s R&D team is focused on developing innovative closely with clients to create long-term product roadmaps
solutions that cater to its customers’ dynamic needs while and shade designs, and also works closely with customers
aligning with the organisation’s sustainability objectives. to develop customised value-added and value-engineering
During the year, we have been granted 2 patents and projects that deliver significant value in areas such as finish,
submitted 4 research papers. KNPL has consistently consumption reduction, productivity, and energy savings.
provided its customers with a range of new and unique
shades and environmentally friendly products that offer
the best value.
Along with its technical expertise, KNPL also possesses

a keen understanding of the constantly evolving The R&D team collaborates
preferences of consumers. To facilitate the development
of new colour options, the Company has established closely with clients to create
a dedicated colour design studio that features over long-term product roadmaps and
7,400 innovative shades. This space is utilised for
design research, enabling more effective trend analysis shade designs, and also works
and reporting. Additionally, the studio serves as an ideal closely with customers to develop
setting for customer presentations and shade selection,
ensuring a seamless experience for all involved. Silicon- customised value-added and
PU Acrylic hybrid technology, Tin Free CED, Low-density
value-engineering projects that
PVC sealant were some of the key technological
advancements during the year. deliver significant value in areas
Collaboration with Kansai Paint, such as finish, consumption
Japan, Kansai Paint Group Companies reduction, productivity, and
and other Partner
energy savings.
KNPL has sustained its technological dominance in
industrial coatings by staying ahead of the competition
with assistance and technical guidance from Kansai Paint
Co., Ltd., Japan (KPJ), a leading global player in the field assenger Vehicle Segment
P
with years of experience in designing and developing In the PV segment, KNPL launched new low-density seam
technology. KNPL works hand in hand with KPJ to create sealer and underbody sealant products to complement its
customised paint and resin formulations for Indian coating expertise in a new segment. Additionally, 8 new
customers. They also provide customers with knowledge colours have been developed for a major OEM customer
of emerging colour trends worldwide and offer first-class under the 3C-1B medium solid technology.
technical assistance to Indian clients based on their
As a breakthrough and first time to market, KNPL introduced
experiences across the world. KNPL also collaborates
a new Tin free CED (LB-250T) that is free from heavy
with Kansai Group companies across the globe to offer
metals, Hazardous Air Pollutants (HAPs), and has low VOC
Indian customers differentiated technologies across a
emissions, resulting in reduced dry film thickness, resource
spectrum of end-user industries in the areas of industrial
and energy consumption during baking.
coatings, coil coatings, ARF and decorative paints.
155
Two-wheeler Segment
KNPL achieved significant milestones in product innovation

and sustainability efforts during the year. To cater to the
evolving needs of its customers, KNPL provided a major
breakthrough product by converting all shades of fuel tanks
for two major OEM manufacturers to be compliant with E20
and E30, ensuring coating resistance to 20-30% ethanol
blending in petrol.
Additionally, KNPL introduced low-bake products that

reduce baking temperature requirements and energy
consumption. This has been achieved by converting the
thermosetting acrylic (TSA) coatings into Polyurethane
(PU) coatings. It also launched a thermal hard coat for two-
wheeler headlamps with superior functionality. Furthermore,
KNPL launched a ROHS compliant uni-bake primer under its
sustainable coatings’ portfolio.
Commercial Vehicle Segment
KNPL commercialised 3 shades with superior functionality

by using 3C-1B technology and low bake PU system. These
coatings helped reduce the baking temperature requirement
from the previous 140oC to 80oC. Additionally, low solids TSA
product was converted to high solid PU product, aiding in 15%
reduction in VOC emissions and 60oC reduction in baking
Key developments in Powder Coatings
temperature requirement for CV segment. It is impressive to see KNPL’s technological leadership in the
powder coatings segment, which has helped the Company
Key Developments in Decorative Paints: become a market leader serving a wide range of industries
KNPL launched several new and improved offerings, all such as white goods, furniture, auto ancillaries, and electricals.
certified for low VOC and heavy metal free as per IS standards. The Company’s collaboration with customers in the auto
For interior applications, a superior functionality product was industry has enabled it to convert a range of liquid coatings
launched to address dampness problems, while for exteriors, to powder coatings. Super functionality Powder which offers
we offered extended service life with a 12-year warranty. High Abrasion resistance, was introduced for accessories to
In the construction chemicals category, KNPL launched a enhance the durability of coating by 2x times. Also, Powders
product with a unique feature of 700% elongation, which with heat-resistant properties were developed in two shades.
reduces the concrete surface temperature up to 14o C during KNPL’s R&D efforts are also focused on developing various
peak summer. The R&D Team also introduced customised resin backbones for powder coatings to ensure superior
admixtures for concrete. In wood coatings, termite-resistant performance.
product was launched, as well as 2K PU interior (sealer,
matte & glossy) and high solid NC sanding sealer. Also, KNPL
Key developments in Coil Coatings
developed and commercialised an anti-carbonation coating During the year, KNPL focused on developing a new portfolio
specifically for the Samruddhi Express Highway. of premium products by introducing specialty coatings.
Under this, a 3-coat metallic system with a clear topcoat was
Key developments in Performance introduced in the coil coatings segment for appliance coating.
Coatings:
The Company developed and commercialised 2K High
Weather resistance PU System for Agricultural & Construction
equipment manufacturer developed jointly with KPJ. A 5-coat
system for Bridges of High-Speed rail Project with Fluro
Undercoat & Flouro Topcoat is also commercialised.
156
Key developments in Auto Refinish supply across the value chain. These challenges, however,
sharpened the focus on creating more value for customers
During the year, KNPL introduced a range of High Gloss Clear
and delivering results for our stakeholders. The year’s theme
PU products in the Economy range and will further expand
was finding the right balance between adapting to external
and strengthen this portfolio in the near future. The R&D team
challenges and the agility required to run our businesses.
has also developed a range of cost effective direct shades
that eliminates the outlet’s tinting process. Cost efficiency measures
Instrument analysis and analytical One of the key successes in the year was the Company’s
capabilities ability to offset the impact of raw material partially and freight
cost inflation with a strong cost reduction programme along
Thermal Imaging Camera: A thermal camera is a non-
with our parent Company Kansai Paints, Japan, our local
contact device that detects infrared energy (heat) and
R&D, and our vendor partners. We also introduced cost and
converts it into a visual image. This instrument will help us
working capital reduction measures in late 2022, which will
with a site inspection and recommend correct product for
remain a priority throughout 2023.
waterproofing and suitable product for roofs that can reduce
surface temperature. Further this will help provide reports to Service level
customers (e.g., Co-Operative Housing Society’s) better with
evidence. Customer-focussed and data-driven planning processes drive
KNPL’s Supply chain towards excellence to help fuel our and
our customers’ growth. On the service front, KNPL ensured
SUPPLY CHAIN continuity of operations for all its Industrial customers despite
the challenges. On the decorative front, we increased our
Macro environment service points, and reduced service lead time to further
FY 2022-23 was an extremely challenging year. Global issues improve the response time and ensure velocity in our
like cost inflation, war in Europe, shutdowns in China, and service to market.
local issues like extended monsoon critically impacted the
157
INFORMATION TECHNOLOGY Cyber Security

Information Technology is a key enabler for Nerolac, helping As digitisation continues to increase, KNPL recognises the
the Company to achieve its business objectives by enhancing heightened risk of cyber threats. To mitigate these risks,
its productivity, efficiency, and customer engagement. The the Company regularly conducts vulnerability assessments,
Company adopted a both outside-in and inside-out approach. penetration testing, and security audits to identify and
address potential security risks.
Under outside in, we focussed on ‘Go To Market’ initiatives
KNPL also has a well-defined information security policy
to create a digital ecosystem for connecting with external
that outlines the standards and procedures for protecting
stakeholders. For the Architects & Interior Designers, we
the Company’s information assets. This policy is regularly
developed a new application. It provided information about
reviewed and updated to ensure its effectiveness in the face
organisations, their strengths, product portfolio and loyalty
of evolving security threats and technologies. Additionally,
programme. We upgraded the Pragati app for the painter
regular training and awareness sessions are conducted for
and contractors for deeper connection with the Company.
employees on cyber security to promote a culture of security
We extensively used digital initiatives to provide Painting as
within the Company and ensure that everyone plays a role in
a service to the consumers. We created a digital platform to
safeguarding the Company’s information and assets.
help consumers make better choices.
Under inside out, we focussed on digital initiatives that would PEOPLE

drive internal efficiencies. KNPL migrated its sales team Our philosophy at KNPL centres around building a culture
from the existing tabs to a mobile platform for enhanced that nurtures collaboration, innovation, and empowerment.
user experience and anywhere access. A mobile app was We strive to offer our employees a unique and fulfilling
launched to track market visits based on Geo-Location. The experience by creating a sense of belonging and purpose.
DGA app was upgraded and enhanced to provide end- Over the course of the year, we have placed great emphasis
to-end visibility from lead generation to lead conversion on our employees’ well-being, recognising that a healthy
and completion. This created a user-friendly interface that body and mind are critical components for achieving
provides necessary insights and dashboards on mobile outstanding results.
screens, enabling faster access to real-time data. On the
logistics side, we have leveraged digital to provide real-time
visibility into shipment status, delivery times, and vehicle
locations, allowing for quick and informed decision-making.
The digital initiatives have allowed us to become more agile,

efficient, and responsive to our customers’ needs. We will
continue to invest in and embrace digitisation as an integral
part of our growth strategy.
Business Continuity
In FY 2022-23, KNPL made significant strides to upgrade the IT
infrastructure and enhance our business continuity measures.
KNPL has strengthened disaster recovery capabilities for
its IT systems by establishing a Far Data Recovery (FDR)
centre to minimise any impact that unexpected events or
disasters might have on its business operations. These
data centres are designed to ensure business continuity by
providing seamless access to critical data and applications in
the event of any unforeseen disruptions.
158
Our people are our most prized asset, and we are dedicated Innovation, Collaboration, Empowerment
to investing in their growth, learning, and overall well-being
Innovation, Collaboration and Empowerment were key thrust
to create an exceptional workplace. We are committed to
areas for the Company. During the year, we had multiple
offering diverse role opportunities that provide structured and
innovation drives, wherein, employees participated across
immersive learning journeys, enabling our employees to take
the organisation to generate ideas that will bring value to
on new responsibilities through on-the-job mentoring and
the organisation. We had atleast 3 such innovation drives
development interventions. During the year, KNPL was also
with more than 500 idea submissions by employees across
recognised as ‘Dream Employer of the year - 2022’ under the
functions and levels. The ideas ranged across diverse areas
Category ‘Dream Companies to Work For’ by Times Ascent
such as topline growth, improving bottom line, operational
World HRD Congress.
efficiency, and sustainability. These ideas were reviewed by
As of the end of FY 2022-23, we had a total of 3,379 permanent a cross-functional team, wherein, ideas were evaluated basis
employees who embody our core values and proudly identify of a set of criteria, including benefits envisaged, uniqueness,
themselves as part of the ‘I AM Nerolac’ family. feasibility and resources required for implementation. This
multi-disciplinary approach and teamwork ensured a
People Centric Approach collaborative approach and alignment across functions.
There was positive interdependence created during
Under the leadership of the Managing Director, the
collaboration and it also opened up hidden opportunities
organisation took an approach to create a work environment
or challenges.
that considers and fulfils the needs of one of the organisation’s
most important assets, its employees. The underlying belief During the year, several important projects of strategic nature
is that success of the organisation is strongly connected were given to employees. The approach was to empower
with its employees’ well-being and growth. The approach employees with delegation, autonomy, key decision making
revolved around creating a culture of openness, collaboration and provided required resources. During the process, both
and empowerment. Special efforts were made for employee the individual employee as well as the team of employees
well-being, training and development and ensuring high had an experience which capitalised on their expertise
engagement levels. Employee surveys conducted at the and judgement, increasing their sense of commitment to
start and end of the year reflected a clear positive shift in the organisation and aiding them to feel empowered and
organisation culture regarding openness and empowerment. motivated.
159
Talent Management
Learning & Development
KNPL has launched its digital academy called Percipio,

which provides access to upskilling opportunities. Our
L&D teams have ensured that our employees receive the
necessary opportunities by leveraging virtual mediums.
Our employees have remained connected throughout the
year through planned events such as seminars, learning
programs, and self-learning modules.
Our Product Master Class is another initiative that

focuses on our employees’ continuous learning and
upskilling. Our subject matter experts come online once a
month to share their views on technical subjects, making
the learning experience interactive and engaging for our
employees.
Competency & Capability Building
At KNPL, we are committed to providing our employees

with the necessary training and development opportunities
to help them grow and succeed within our organisation.
Structured training is also provided to various employee
groups to enhance leadership capabilities.
One of our key initiatives is our campus collaboration

programme, through which we hire fresh talent from
reputed management and technical institutes. We
believe in hiring the best talent and providing them with
the right opportunities to grow and succeed within our
organisation.
Employee Engagement
KNPL aims to create an open, transparent work culture

and improve employee engagement platforms. It
has established effective employee connection and
communication platforms to foster a strong relationship
between employees and the organisation. These include
the MD’s Townhall, Coffee with HR/Works Manager,
Annual Learning Conference, and much more. These
initiatives encourage employees to stay informed,
participate actively, and feel valued and involved.
160
Diversity & Inclusion

KNPL understands that diversity and inclusion are both
moral imperatives and critical components of our business
strategy. We believe that a diverse workforce brings a variety
of perspectives, ideas, and experiences that enhance our
ability to innovate and solve challenges. Our permanent
female employees are 3.9% of our total employees (excluding
workers).
As an employer that provides equal opportunities, we are

focused on attracting, retaining, and nurturing talented
individuals without discrimination based on gender, race,
religion, caste, creed, disability, or any other characteristic. To
ensure that our work environment is inclusive and welcoming,
we have conducted assessments at our Mumbai head office
to identify and address any potential infrastructure issues
that may hinder inclusivity. We will be performing such
assessments in the upcoming year at our other locations.
Employee Wellbeing
At KNPL, employee wellness is highly valued, and several
initiatives have been introduced to support it. These
initiatives include wellness sessions that focus on topics
related to health and safety, aimed at raising awareness
among employees and their families about key areas related
to their well-being.
One of the initiatives introduced this year was the Wellness

Corner, which is a customised wellness app that provides
employees with access to a doctor on call with over
30,000 specialists available for consultation through video
or in person. Additionally, a Step Challenge was launched
to encourage physical activity and camaraderie among
employees. The Company also extended the benefit of
discounted gym memberships to its employees, showing its
commitment to providing them with the resources they need
to maintain a healthy lifestyle and achieve their personal
fitness goals.
We will continue to invest in initiatives that support our

employees’ physical, mental, and emotional health, creating a
safe, engaging, and productive workplace where our valued
employees can thrive.
For the first time, KNPL provided its employees with a

sense of ownership and a stake in the Company’s success,
incentivising them to work harder and more effectively by
announcing restricted stock units (RSUs). It also helps retain
top talent and aligns employee interests with the company’s
long-term goals.
161
Performance Management
Our performance management process encompasses
setting goals, mid-year check-ins and annual performance
evaluations. Our performance dashboard provides timely
feedback on key performance indicators, empowering
employees to remain on track and make any necessary
adjustments.
Rewards & Recognition

We recognise and reward our employees based on their
contributions to our business objectives, adherence to our
values, and demonstration of leadership and teamwork.
COMMUNITY DEVELOPMENT
KNPL’s commitment to social responsibility extends beyond
the confines of its operations, radiating outwards to benefit
society as a whole. Guided by a philosophy of being a
conscientious and compassionate neighbour, KNPL strives
to contribute meaningfully to the betterment of humanity. In
line with this, KNPL has linked its CSR programmes to the
United Nations’ Sustainability Development Goals (UNSDGs),
emphasising the organisation’s dedication to sustainable
development and social responsibility.
The current fiscal year saw KNPL enhance its efforts, with
a focus on 17 of the identified 121 aspirational districts
by the Government of India. These initiatives have been
designed to benefit the underprivileged sections of society
and enhance KNPL’s reputation as a responsible corporate
citizen. Through these actions, KNPL also aims to encourage
individual employees to embrace their societal duty,
developing a sense of compassion and awareness towards
those in need.
KNPL’s CSR initiatives are varied and multifaceted,

encompassing everything from rural and community
development to promoting education, ensuring environmental
sustainability, and providing preventive healthcare and
sanitation. With more than 22% of KNPL’s employees
volunteering for such activities in the previous year, it is clear
that the organisation is succeeding in fostering a culture of
social responsibility amongst its workforce.
162
Through its ‘Women Empowerment in farming through ENVIRONMENT, HEALTH & SAFETY
livelihood intervention’ project, KNPL has significantly
impacted the lives of 20 women farmer families, KNPL is dedicated to maintaining a safe and healthy workplace,
encompassing approximately 120 members. This project complying with regulations, minimising environmental impact,
has inspired these families and mobilised 54 additional and promoting sustainable practices.
families to participate actively in agriculture as an
entrepreneurial pursuit. As a result, the project is now self-
Climate Change
sustainable, with women cultivating 5 acres of land. The In response to the pressing environmental challenge of
cultivation area has increased by more than five-fold, and climate change, KNPL has adopted the Task Force on
agricultural production has increased by nearly six-fold. Climate-related Financial Disclosures (TCFD) framework in FY
2022-23 to assess and quantify its risks and opportunities.
During the year, steps were taken to address human health We have integrated the identified risks with our Enterprise
issues through the Company’s CSR initiatives. The Company Risk Management strategy. KNPL is committed to setting
has initiated and planned specific activities in the areas of and submitting science-based emission reduction targets to
HIV/AIDS, tuberculosis, and malaria. Awareness-building the Science-Based Targets initiative (SBTi) for validation. We
workshops and skits were also organised with NGOs in have estimated our current carbon footprint for Scope 1,
villages near the plants. Informative posters displayed at Scope 2 & Scope 3 and actively working towards lowering
various locations, such as hospitals and Gram Panchayat, as our carbon footprint. We are implementing energy-saving
well as other public places near all KNPL plants. Booklets in measures, using affordable, eco-friendly solutions such as
local languages were created in consultation with medical solar and wind power, and exploring bio-based and recycled
authorities and distributed in villages near the plants to materials. We also undertake tree-planting activities both
increase awareness about these diseases. KNPL provided inside and outside our factory premises, planting 6496 trees
necessary equipment and support to nearby hospitals to aid within the factory boundaries and 600 trees outside in FY
in the treatment of related diseases. 2022-23. We strive to be environmentally responsible by
mitigating our impact and taking steps towards a sustainable
In the pursuit of environmental sustainability, KNPL has taken future.
a proactive approach by implementing various initiatives
such as planting trees, harvesting rainwater, conducting Water Management
cleanliness drives, and promoting the use of solar energy. We recognise our responsibility towards promoting a
These efforts have contributed to improving the quality of life sustainable ecosystem and ensuring responsible resource
on land and paved the way towards a greener future. usage. We have implemented various water management
practices and initiatives to ensure water stewardship and
reduce water usage throughout our operations, including
recycling wastewater, using low-flow fixtures, and collecting
rainwater. We engage with local communities to understand
their water needs and concerns and have taken measures to
restore ponds and replenish water. Our efforts have resulted
in becoming water neutral by replenishing 100% of water
withdrawal across our operations. Despite commissioning in-
house resin manufacturing, we have reduced specific water
consumption by 1.7%. We prioritise rainwater harvesting and
obtain 23% of our water supply from recycled sources while
maintaining our ZERO Liquid Discharge status at all major
plants.
163
Waste Management Plastic Waste Management - KNPL has taken steps to meet
its EPR obligations for plastic waste through collection and
Our waste management practices are guided by the principles
recycling. The Company has set up pre-consumer plastic
of reduce, reuse, and recycle, as we strive to minimise our
sheet take-back programmes to ensure they are recycled
environmental impact. We have optimised our production
at the end of their useful lives. KNPL engages with its
methods to reduce waste production, including eliminating
suppliers to ensure that they follow the PWM guidelines set
paint losses during production and recycling solvent waste.
forth by the CPCB, as part of its commitment to promoting a
The leftover paint from manufacturing is recycled and used
circular economy for plastics. For the reporting year, KNPL
as a raw material to make low-grade paints, demonstrating
collected and recycled 7,421 MT of pre- and post-consumer
our commitment to circular economy principles.
plastic, fulfilling its EPR obligation as a brand owner. The
We are constantly working towards enhancing our waste Company has also eliminated the use of single-use plastic
management procedures. We aim to reduce the amount of and is increasing the use of recycled content in its packing
hazardous waste generated at our manufacturing locations, materials.
which saw a 7% increase in the specific hazardous waste
Further details on our efforts to reduce climate impact,
generation during the reporting period due to the increase
water consumption, waste generation and disposal are
in effluent generation from recently commissioned in-house
outlined in the Natural Capital Section of our annual report.
resin manufacturing units. We remain committed to using
responsible waste management techniques and promoting
sustainable resource usage.
For the reporting year, KNPL

collected and recycled 7,421
Our waste management MT of pre- and post-consumer
practices are guided by the plastic, fulfilling its EPR obligation
principles of reduce, reuse, and as a brand owner.
recycle, as we strive to minimise
Safety
our environmental impact. We
Every individual has the right to a safe and healthy
have optimised our production workplace, and KNPL is dedicated to ensuring this is a reality
methods to reduce waste for everyone. All major factories are ISO 45001 accredited,
ensuring a reliable environmental and safe working
production, including eliminating conditions. Several activities, thematic safety training,
paint losses during production competitions, and evaluations are regularly conducted to
enhance emergency readiness and build a safety culture
and recycling solvent waste. amongst our workforce. Details of the initiatives undertaken
are covered in the Occupational Health and Safety section
of Human Capital.
164
RECOGNITION IN ESG environment, there is a growing demand for sustainable

and eco-friendly products in both decorative and industrial
KNPL’s continuous efforts and proactive measures towards coatings landscape.
Environmental, Social, and Governance (ESG) have
significantly improved its position in the global Chemical ESG INTERNAL CONTROL SYSTEMS AND
sector. THEIR ADEQUACY
KNPL’s Internal Control Systems are designed to track and
report on its day-to-day operations to monitor and control
them. These systems also effectively monitor compliance
with numerous concepts, regulations, and norms and adhere
KNPL was rated in the top 10% in to methodology requirements.
the S&P Corporate Sustainability
The Company has implemented an Internal Financial Control
Assessment (CSA) 2022 in system in compliance with the provisions of Section 134(5)
Chemicals Category out of 400+ (e) of The Companies Act, 2013, to improve internal control
systems and give the Board of Directors additional capacity
companies that were assessed to review internal controls. Implementing these systems has
by S&P Global and ranked in the been guided by the framework suggested in the Guidance
Note on Audit of Internal Financial Controls in Financial
Top Quartile of FTSE4Good Index Reporting issued by The Institute of Chartered Accountants
of India, to address the Company’s operational and financial
Series June 2022 Review by risks. In addition, the statutory auditors test the Company’s
Financial Times Stock Exchange systems using automated techniques.
(FTSE). Control Efficiency Index and Robust

Control Index
The Control Efficiency Index (CEI) and the Robust Control
OPPORTUNITIES AND THREATS Index (RCI) are still used by the Company to track its internal
Information for this section can be found in the ‘Opportunities audit success. KNPL’s control measures are benchmarked
and Threats’ section of the Corporate Overview. against industry standards for effective control mechanisms.
The Company’s internal audit programme focuses on
RISKS AND CONCERNS determining whether gaps exist due to control design,
policy design, control or process deviation, IT or regulatory
Information for this section can be found in the ‘Risks and compliances. It also considers which controls are capable of
Concerns’ section of the Corporate Overview. automation. The Company then uses the results of the audit
to improve its internal controls.
OUTLOOK
The Indian paint sector presents significant opportunities Compliances
for growth. The Government’s emphasis on infrastructure KNPL has developed a dashboard of key legislation
development, affordable housing schemes, and smart cities is changes that are notified by various Government authorities
expected to drive demand for paints. We aim to create value and tracked by the management regarding requirements
for all stakeholders in the medium to long term by outpacing and implementation. The Company tracks all regulatory
market growth and maintaining modest margin expansion. compliances online through the Legatrix system. The system
is updated regularly with all the changes in compliance as
The entry of newer players in the industry is expected to
they occur. Online tracking and tracing of completion help
increase competition and drive innovation, which is positive
ensure strict adherence to regulations. In addition, the
for the industry as a whole. Secondly, as consumers are
Company also tracks any legal cases through the Roznama
also increasingly aware of their choices’ impact on the
system.
165
AWARDS AND RECOGNITION

Company/
Name of Award Award Description Category Awarded by
Location
Dream employer Recognised as ‘Dream Employer of the Year’ under the Times ascent World
Category “Dream Companies to Work For” HR KNPL
of the Year HRD Congress
Digital Leader Awarded Digital leader in manufacturing (Paints) IT - Digital Alden KNPL
Zero PPM Award Received Zero PPM Award for outstanding Daimler India
Quality Hosur
performance quality & delivery Commercial Vehicle
Zero Defect Award for outstanding contributions by achieving Toyota Kirloskar
Quality Hosur
Supplier Award “Zero Defect Supplier award” Motors Pvt. Ltd
Titled “Longest Awarded with title “Longest Accident-Free Period”
Haryana
Accident-Free in chemical sector large industry Rewari, Dharuhera Safety Bawal
Government body
Period” region.
Excellence Award Awarded for productivity and process improvement
Process Quality Circle
case study at 36th NCQC (National Convention on Lote
Improvement Forum of India
Quality Concepts)
HR Professional Awarded for outstanding performance in nearby Rewari Chamber
Guru Award industries and contribution towards CSR. CSR of Commerce and Bawal
Industry
National Safety Awarded Shreshtha Suraksha Puraskar – Silver Trophy
National Safety
Council of India Manufacturing Sector. Safety Lote
Council (NSC)
Safety Award
Apex India Safety Facilitated with “Platinum Award” for the best health Apex India
Safety
Award and safety practices at workplace Foundation
Awarded “Champion Award-2022”, in individual Jainpur
Apex India
category of Occupational Health & Safety in chemical Safety
Foundation
sector
Kaizen Gold Award for Batch Cycle Time (BCT) reduction case Quality Circle
Process
study Forum of India Bawal
Improvement
(QCFI)
Platinum, Gold & Silver award in 43rd edition of CII Process Confederation of
Goindwal
National level kaizen competition. Improvement Indian Industry (CII)
Silver Awards under Renovative Category in 44th CII Confederation of
Innovation Lote
National Kaizen Competition Indian Industry (CII)
17th CII National level kaizen competition. Process Confederation of
Hosur
Improvement Indian Industry (CII)
Gold award in “MUDA” Category in 13th Edition of CII Process Confederation of Goindwal,
National 3M Competition Improvement Indian Industry (CII) Hosur
Runner-up in 5th CII National Low-Cost Automation
Process Confederation of
Circle Hosur
Improvement Indian Industry (CII)
166
Company/
Name of Award Award Description Category Awarded by
Location
Gold Award Gold Award for Energy saving case study Process Quality Circle
Bawal
Improvement Forum of India
Gold Award Gold Award at 7th Chapter Convention on Quality Quality Circle
Quality Hosur
Control (CCQC) Forum of India
Silver Award Silver Trophy for presenting “Reduction in Water
Confederation of
Consumption and Water Conservation” EHS Jainpur
Indian Industry (CII)
Appreciation Efforts on raising awareness for TB under United States

“Pradhanmantri TB mukt bharat abhiyan” Agency for
CSR International Sayakha
Development
(USAID)
Appreciated the contribution in CSR activities for social District
CSR Bawal
work Administration
Appreciation for Occupational Health Safety & National Safety
Environment from National Safety Council. EHS Hosur
Council (NSC)
Appreciation for continuous efforts on Environmental
Pollution Prevention & CSR Activities, Mass Plastic Tamil Nadu
Removal Campaign & Meendum Manjapai Distribution EHS Pollution Control Hosur
Campaign. Board (TNPCB)
CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis section of this report
describing the Company’s objectives, estimates and expectations may be ‘forward-
looking statements’ within the meaning of the applicable laws and regulations.
Actual results might differ materially from those either expressed or implied.
167
2. Directors’ Responsibility Statement 5. Directors

As stipulated under the provisions contained in In terms of the provisions of the Act and the Articles of
Section 134(3)(c) read with Section 134(5) of the Association of the Company, Mr. Hitoshi Nishibayashi
Companies Act, 2013, (“the Act”), the Board of Directors, (holding Director Identification Number 03169150),
to the best of its knowledge and belief and according to Non‑Executive Director, is liable to retire by rotation at the
the information and explanations obtained by it, hereby ensuing Annual General Meeting (“AGM”) of the Company
and being eligible offers himself for re-appointment.
states that:
Mr. Anuj Jain (holding Director Identification
i. in the preparation of the annual accounts, the
Number 08091524) has been appointed as the Managing
applicable accounting standards have been followed Director of the Company for a period of 5 (five) years
and there are no material departures; commencing from 1st April, 2022 and ending on
ii. the directors have selected such accounting policies 31st March, 2027 (both days inclusive).
and applied them consistently and made judgments Ms. Sonia Singh (holding Director Identification
and estimates that are reasonable and prudent so Number 07108778) has been re-appointed as an
as to give a true and fair view of the state of affairs Independent Director for a second term of 5 (five)
of the Company at the end of the financial year and years commencing from 29th July, 2022 and ending on
of the profit of the Company for that period; 28th July, 2027 (both days inclusive).
iii. the directors have taken proper and sufficient The Shareholders approved the aforesaid appointment of
Mr. Anuj Jain and Ms. Sonia Singh at the 102nd AGM of the
care for the maintenance of adequate accounting
Company held on 23rd June, 2022.
records in accordance with the provisions of the
Act, for safeguarding the assets of the Company Mr. N. N. Tata (holding Director Identification
and for preventing and detecting fraud and Number 00024713) has resigned as an Independent Director
other irregularities; of the Company with effect from 10th August, 2022. He has
tendered his resignation as an Independent Director due
iv. the directors have prepared the annual accounts of to increased professional commitments and requirements
the Company on a going concern basis; of various Board positions. The Company has received a
confirmation from Mr. N. N. Tata that there are no other
v. the directors have laid down internal financial controls
material reasons other than those provided above for his
to be followed by the Company and that such internal resignation from the Board.
financial controls are adequate and are operating
effectively; and Mr. Bhaskar Bhat (holding Director Identification
Number 00148778) has been appointed as an Independent
vi.
the directors have devised proper systems to Director to hold office for a term of 5 (five) years commencing
ensure compliance with the provisions of all from 10th August, 2022 and ending on 9th August, 2027
applicable laws and that such systems are adequate (both days inclusive). The Shareholders approved the said
and operating effectively. appointment on 25th October, 2022 vide Postal Ballot.
Mr. Shigeki Takahara, Non-Executive Director (holding
3. New Projects Director Identification Number 08736626) is resigning from
the Board of the Company with effect from 26th June, 2023.
During the financial year 2022-23, the Company has
commissioned the resin plant at Sayakha. It has initiated Pursuant to Section 161(4) of the Act, read with Article 114
expansion of its water-based paint units at Jainpur and of the Articles of Association of the Company, the Board
Hosur plants. Further, a plant for water-based paint and of Directors of the Company, on recommendation of the
other products is being set up at Vizag. Nomination and Remuneration Committee, appointed
Mr. Pravin Digambar Chaudhari as a Non-Executive
Director of the Company with effect from 26th June, 2023,
4. Land Monetisation
in the casual vacancy that is being caused by the
The Board of Directors has approved a proposal for resignation of Mr. Shigeki Takahara. The Board, while
monetization of idle land parcels of the Company not appointing Mr. Chaudhari considered his rich experience
being put for productive use. The Board of Directors of the and vast knowledge in the field of operations management,
Company has approved a proposal for sale of the Company’s manufacturing, supply chain management, business
land at Kavesar, Thane to Shoden Developers Private development, sales management and strategy, the skills,
capabilities and proficiency required for the role.
Limited, a group company of House of Hiranandani group
(hereinafter referred as the “Purchaser”) for consideration of The Board placed on record its sincere appreciation and
` 655 Crores for an area admeasuring 96,180 sq. mts. gratitude for the valuable contribution made by Mr. Tata and
The Company has entered into an Agreement to Sell Mr. Takahara, during their association with the Company.
with the Purchaser. The sale is subject to completion None of the Directors is disqualified as on 31st March, 2023
of procedures and approvals as may be necessary in from being appointed as a Director under Section 164 of
this regard. the Act.
168
Boardʼs Report 103rd Annual Report 2023
All the Independent Directors on the Board have given 9. Audit Committee
a declaration of their independence to the Company
In terms of the provisions of Regulation 18 of the SEBI
as required under Section 149(6) of the Act and
Listing Regulations read with Section 177 of the Act, the
Regulation 16(1)(b) of the Securities and Exchange Board Audit Committee is constituted as follows:
of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“SEBI Listing Regulations”). In the Names of the Members Designation
opinion of the Board, all the Independent Directors possess Mr. P. P. Shah (Chairman Chairman and
integrity, expertise and experience including proficiency of the Audit Committee) Independent Director
required to be an Independent Director of the Company.
Mr. Bhaskar Bhat* Independent Director
They fulfill the conditions of independence as specified in
Ms. Sonia Singh Independent Director
the Act and the SEBI Listing Regulations, comply with the
Code for Independent Directors as prescribed in Schedule *
Mr. Bhaskar Bhat was appointed as a member of the Audit
IV of the Act and are independent of the Management. Committee with effect from 10th August, 2022. Mr. N. N. Tata
ceased to be the member of the Audit Committee consequent
The Company has a Code of Conduct for Directors to his resignation as a Director of the Company with effect from
and Senior Management. All the Directors and Senior 10th August, 2022.
Management have confirmed compliance with the Code. The recommendations made by the Audit Committee to the
Board, from time to time during the year under review, have
Details with respect to the composition of the Board,
been accepted by the Board. Other details with respect
the meetings of the Board held during the year and the
to the Audit Committee such as its terms of reference,
attendance of the Directors thereat have been provided the meetings of the Audit Committee and attendance
separately in the Annual Report, as a part of the Report on thereat of the members of the Committee, are separately
Corporate Governance. provided in the Annual Report, as a part of the Report on
Corporate Governance.
6. Key Managerial Personnel
In terms of Section 203 of the Act, the Company has 10. Statutory Auditors
the following Key Managerial Personnel: Mr. Anuj Jain, At the 99th AGM of the Company, the Shareholders
Managing Director, Mr. P. D. Pai, Chief Financial Officer and had approved the appointment of S R B C & CO LLP,
Mr. G. T. Govindarajan, Company Secretary. Chartered Accountants (Firm Registration No. 324982E /
E300003) as the Statutory Auditors of the Company,
7. Meetings of the Board to hold office for a period of 5 (five) years from the
99th AGM of the Company till the conclusion of the
The Board met 7 (seven) times during the financial year 104th AGM of the Company, in terms of the applicable
ended 31st March, 2023. The meeting details are provided provisions of Section 139(1) of the Act read with the
separately in the Annual Report, as a part of the Report on Companies (Audit and Auditors) Rules, 2014. Details of
Corporate Governance. The maximum interval between any the remuneration paid to S R B C & CO LLP, Chartered
two meetings did not exceed 120 days, as prescribed in the Accountants, Statutory Auditors, during the financial year
Act and the SEBI Listing Regulations. 2022-23 are disclosed in the Financial Statements of
Company, which are part of the Annual Report.
8. Board Evaluation The Auditors’ Report on the Financial Statements
(Standalone and Consolidated) of the Company for the
In terms of the applicable provisions of the Act and the
year under review, is clean and there are no qualifications
SEBI Listing Regulations, Nomination and Remuneration in the said Report. Also, no frauds in terms of the provisions
Committee and the Board of Directors have approved of Section 143(12) of the Act have been reported by the
a framework, which lays down a structured approach, Auditors in their Report for the year under review.
guidelines and processes to be adopted for carrying out an
The Notes to the Financial Statements (Standalone and
evaluation of the performance of the Directors, the Board
Consolidated) are self-explanatory and do not call for any
as a whole and its Committees. The evaluation process has further comments.
been separately explained in the Annual Report, as a part of
the Report on Corporate Governance. 11. Particulars of Loans, Guarantees or
For the year under review, the Board carried out the Investments under Section 186 of the Act
evaluation of its own performance, its Committees and Details of Loans, Guarantees and Investments covered
individual Directors. Evaluation results as collated and under the provisions of Section 186 of the Act, are separately
presented, were noted by the Nomination and Remuneration disclosed in the Annual Report, as a part of the Notes to the
Committee and the Board. Financial Statements.
169
12. Related Party Transactions operations or other disciplines related to the

Company’s business. There shall be no discrimination
The Company has in place a Policy on dealing with Related on the basis of gender, race, ethnicity and nationality
Party Transactions and on Materiality of Related Party while determining the Board composition.
Transactions which is available on the website of the Company
● A Director shall be a person of integrity, who possesses
at https://www.nerolac.com/financial/policies.html. In terms
relevant expertise and experience. He shall uphold
of the same, a statement in summary form of transactions
ethical standards of integrity and probity and act
with related parties in the ordinary course of business objectively and constructively. He shall exercise his
and arm’s length basis is periodically placed before the responsibilities in a bona-fide manner in the interest
Audit Committee for its review. Omnibus approval was of the Company; devote sufficient time and attention
obtained for transactions which were repetitive in nature. to his professional obligations for informed and
Transactions entered into pursuant to omnibus approval balanced decision making; and assist the Company in
were placed before the Audit Committee for its review during implementing the best corporate governance practices.
the year. Related party transactions have been disclosed in

An Independent Director should meet the
Note no. 38 to the Standalone Financial Statements.
requirements of the Act and the SEBI Listing
In terms of the provisions of Section 188(1) of the Act Regulations, concerning independence of directors.
read with the Companies (Meetings of Board and its The Company shall also obtain certification of
Powers) Rules, 2014 and Regulation 23 of the SEBI Listing independence from the Independent Director in
Regulations, all related party transactions that were entered accordance with the Act and SEBI Listing Regulations.
into, during the year under review, were in the ordinary ● The remuneration paid to Whole-time Directors is
course of business of the Company and on an arm’s length subject to the limits laid down under Section 197 and
basis. There were no material related party transactions Schedule V to the Act and in accordance with the
during the year. Accordingly, Form AOC-2, prescribed terms of appointment approved by the Shareholders
under the provisions of Section 134(3)(h) of the Act and of the Company. The remuneration of the Whole‑time
Rule 8 of the Companies (Accounts) Rules, 2014, for Directors is determined by the Nomination and
disclosure of details of Related Party Transactions, which Remuneration Committee based on factors such as the
are “not at arm’s length basis” and also which are “material Company’s performance and performance/ track record
and at arm’s length basis”, is not provided as an annexure of the Whole-time Directors. The remuneration consists
to this Report as it is not applicable. of Salary, Commission, Company’s contribution to
Provident Fund and Superannuation Fund, House Rent
Allowance (HRA), Leave Travel Allowance (LTA) and
13. Corporate Governance other perquisites and allowances in accordance with the
The Company is in full compliance with the requirements rules of the Company, applicable from time to time.
and disclosures that have to be made in terms of the ● The Non-Executive Independent Directors are paid
requirements of Corporate Governance specified in the commission within the ceiling of 1% of net profits of the
SEBI Listing Regulations. Company as specified in Section 197 of the Act. The
commission payable to Non-Executive Independent
In terms of the provisions of Schedule V(C) of the Directors is decided by the Board, on recommendation
SEBI Listing Regulations, a detailed Report on Corporate of the Nomination and Remuneration Committee,
Governance forms part of the Annual Report. Further, a based on a number of factors including number of
Certificate from the Statutory Auditors of the Company Board and Committee meetings attended, individual
confirming compliance with the requirements of Corporate contribution thereat etc. The Non-Executive Directors
Governance as specified in the SEBI Listing Regulations is are also paid sitting fees for attending the meetings
provided together with the Report on Corporate Governance, of the Board or Committee thereof within the limits
the same shall be considered to be an annexure to this prescribed under the Act.
Report. ● The objective of the policy is to have a compensation
framework that will reward and retain talent.
14. Remuneration Policy
● The remuneration will be such as to ensure that the
The Board of Directors has adopted a policy which deals with correlation of remuneration to performance is clear
(i) criteria for determining qualifications, positive attributes and meets appropriate performance benchmarks.
and independence of Director and (ii) remuneration for ● Remuneration to Key Managerial Personnel, Senior
Directors, Key Managerial Personnel and other employees Management and other employees will involve a
(“Remuneration Policy”). balance between fixed and variable pay reflecting
The features of the Remuneration Policy are as follows: short and long term performance objectives of the
employees in line with the working of the Company
● The Company, while constituting the Board shall and its goals. The short and long term performance
draw members with appropriate skills, experience objectives cover amongst various aspects industry
and knowledge from diverse fields such as finance, performance, customer performance, overall economic
law, management, sales, marketing, architecture, environment, financial performance and performance
administration, research, corporate governance, on Environment, Social and Governance objectives.
170
● For Directors, the Performance Pay will be linked to 17. Corporate Social Responsibility
achievement of Business Plan (achievement of short
term and long-term business objective). In terms of Section 135 of the Act, the constitution of the
Corporate Social Responsibility (“CSR”) Committee as on
● For Heads of Department, the Performance Pay will
31st March, 2023 is as follows :
be linked to achievement of functional plan which is
derived from the business plan. The functional plan Names of the Members Designation
includes both, short-term and long-term objectives. Ms. Sonia Singh* Independent Director
● For other management personnel, the Performance (Chairperson of the CSR
Pay will be linked to achievement of individual set Committee)
objectives and part of this will also be linked to overall Mr. Anuj Jain Managing Director
Company performance. Mr. Bhaskar Bhat # Independent Director
he Remuneration Policy is also available on the website
T * s. Sonia Singh was appointed as the Chairperson of the
M
of the Company at https://www.nerolac.com/ financial/ CSR Committee with effect from 1st April, 2022.
policies.html. #

Mr. Bhaskar Bhat was appointed as a member of the
CSR Committee with effect from 10th August, 2022.
15. Risk Management Policy Mr. N. N. Tata ceased to be the member of the CSR Committee
The Company has identified the risk areas in its operations consequent to his resignation as a Director of the Company with
along with its probability and severity, department wise. An effect from 10th August, 2022.
effective Risk Management Framework is put in place in the The functions of the CSR Committee are to:
Company in order to analyze, control and mitigate risk. Risk (a) formulate and recommend to the Board, a Policy
profiling is also put in place for all the areas of operations in the which shall indicate the activities to be undertaken
Company and well integrated in the business cycle. The various by the Company in areas or subject, specified in
risks to which the Company is exposed are disclosed as a part Schedule VII of the Act;
of Management Discussion and Analysis, hereinabove.
(b) recommend the amount of expenditure to be incurred
The Risk Management Framework of the Company comprises on the activities referred to in clause (a); and
of Risk Management Committee and the Risk Officers. (c) monitor the CSR Policy of the Company from time
In terms of the provisions of Regulation 21 of the SEBI Listing to time.
Regulations, the constitution of Risk Management Committee There was 1 (one) meeting of the CSR Committee during
as on 31st March, 2023 is as follows: the financial year on 27th March, 2023 which was attended
by all members of the Committee.
Names of the Members Designation
The Board on recommendation of the CSR Committee
Mr. P. P. Shah* Chairman and Independent has framed a CSR Policy and the same is available on
(Chairman of the Risk Director the website of the Company at https://www.nerolac.com/
Management Committee ) financial/policies.html.
Ms. Sonia Singh Independent Director The Annual Report on CSR activities as required under
Mr. Anuj Jain Managing Director Companies (Corporate Social Responsibility Policy) Rules,
2014, as amended, including a brief outline of the Company’s
Mr. Jason Gonsalves Non-board member on the CSR Policy, is annexed to this Report as Annexure 1.
Committee
Mr. P. D. Pai Chief Risk Officer and 18. Particulars on the Committees of the
Non-board member on the Board
Committee The details with regard to the composition of the
* Appointed as the Chairman of the Risk Management Committee Committees of the Board and the number of meetings
with effect from 1st April, 2022. held during the year of such committees, as required
under the SEBI Listing Regulations, is separately
16. Vigil Mechanism – Whistle Blower Policy provided in the Annual Report, as part of the Report on
The Company, pursuant to Section 177(9) of the Act and
Regulation 22 of the SEBI Listing Regulations, has a 19. Dividend Distribution Policy
Whistle Blower Policy to report genuine concerns and
grievances. The Policy provides adequate safeguards The Dividend Distribution Policy of the Company has been
against victimisation of persons who use the Whistle Blower formulated to ensure compliance with the provisions of
mechanism. Details with respect to implementation of the Regulation 43A of the SEBI Listing Regulations. The Dividend
Whistle Blower Policy are separately disclosed in the Annual Distribution Policy is also available on the website of the
Report, as a part of the Report on Corporate Governance. Company at https://www.nerolac.com/financial/policies.html.
The same is also available on the website of the Company The declaration of dividend by the Company is in compliance
at https://www.nerolac.com/financial/policies.html. with its Dividend Distribution Policy.
171
20. Prevention of Sexual Harassment at bonus shares in the proportion of 1 (One) New Equity Share
workplace of ` 1 each for every 2 (Two) existing Equity Shares of
Re. 1 each, subject to approval of the Shareholders.
In line with the provisions of the Sexual Harassment
Approval of the Shareholders is being sought vide Postal
of Women at Workplace (Prevention, Prohibition and
Ballot Notice dated 8th May, 2023.
Redressal) Act, 2013 (“POSH Act”), the Company has
adopted a “Policy on Appropriate Social Conduct at
Workplace”. The Policy is applicable for all employees of the
25. Restricted Stock Unit Plan
organization, which includes corporate office, manufacturing The Shareholders have approved the Kansai Nerolac Paints
locations, branches, depots etc. The Policy is applicable to Limited – Restricted Stock Unit Plan 2022 (“RSU Plan 2022”)
non-employees as well i.e. business associates, vendors, on 25th October, 2022 vide Postal Ballot and authorised
trainees etc. the Board to offer, issue and provide Restricted Stock
Units (“RSUs”) to such employees as may be determined
The Company has complied with the provisions relating to by the Nomination and Remuneration Committee (“NRC”)
the constitution of Internal Complaints Committee under in terms of the RSU Plan 2022. The RSU Plan 2022 has
the POSH Act to redress complaints received on sexual been introduced to attract, retain, motivate its employees
harassment as well as other forms of verbal, physical, and improve performance of the Company for ensuring
written or visual harassment. sustained growth.
During the year under review, the Company did not receive The NRC acts as the Compensation Committee under the
any complaints of sexual harassment and no case was filed SEBI (Share Based Employee Benefits and Sweat Equity)
under the POSH Act. Regulations, 2021 (“SEBI SBEB Regulations”) for the
administration of the RSU Plan 2022.
21. General Shareholder Information The NRC, during the year under review, has granted
11,92,792 RSUs to selected employees of the
General Shareholder Information is given as Item no. 11 of
Company as determined by the NRC, in terms of
the Report on Corporate Governance forming part of the
the RSU Plan 2022. NRC, at its meeting held on
Annual Report.
8th May, 2023, further granted 24,786 RSUs to selected
employees.
22. Particular regarding Employees
During the financial year 2022-23, there has been no
Remuneration
change in the RSU Plan 2022. There was no RSU that
Disclosure comprising particulars with respect to the vested or any share issued on vesting during the year.
remuneration of directors and employees, as required to The RSU Plan 2022 is in compliance with the SEBI SBEB
be disclosed in terms of the provisions of Section 197(12) Regulations.
of the Act and Rule 5 of the Companies (Appointment and
Information as required under the SEBI SBEB Regulations
Remuneration of Managerial Personnel) Rules, 2014, is have been uploaded on the Company’s website at
annexed to this Report as Annexure 2. https://www.nerolac.com/investors/financial-results.html
and is annexed to this Report as Annexure 4.
23. Conservation of Energy, Technology
Absorption and Foreign Exchange earnings 26. Annual Return
and outgo
Pursuant to Section 92(3) read with Section 134(3)(a)
The statement giving the particulars relating to of the Act, the Annual Return as on 31st March, 2023
conservation of energy, technology absorption and foreign is available on the website of the Company at
exchange earnings and outgo, as required in terms of https://www.nerolac.com/our-financial-results.html.
Section 134(3)(m) of the Act read with Rule 8(3) of the
Companies (Accounts) Rules, 2014, is annexed to this
Report as Annexure 3.
27. Details of Unclaimed Suspense Account
Details pertaining to Unclaimed Suspense Account of the
24. Share Capital Company are separately provided in the Annual Report, as
part of the Report on Corporate Governance.
The paid up Equity Share Capital as at 31st March, 2023
stood at ` 53.89 Crores.
28. Investor Education and Protection Fund
During the year under review, the Company did not issue (“IEPF”)
any Equity Shares. Further, the Company has not issued Transfer of Unclaimed Dividend to IEPF
any convertible securities or shares with differential voting
rights or sweat equity shares or warrants. During the year under review, dividend amounting to
` 12.48 Lakhs that had not been claimed by the shareholders
The Board of Directors, at its meeting held on 8th May, 2023, for the year ended 31st March, 2015, was transferred to the
approved the increase in Authorised Share Capital of the credit of IEPF as required under Sections 124 and 125 of
Company from ` 66.50 Crores to ` 85 Crores and issue of the Act.
172
Unclaimed dividend as on 31st March, 2023 Cost Accountants (Registration No. 000611), as the
As on 31st March, 2023, dividend amounting to ` 2.34 Crores Cost Auditor to conduct an audit of its cost accounting
has not been claimed by Shareholders of the Company. records for the financial year 2021-22, pertaining to products
Shareholders are required to lodge their claims with the of the Company as required by the law. The Cost Audit
Registrar and Share Transfer Agents of the Company Report submitted by the Cost Auditor for the financial year
i.e. TSR Consultants Private Limited, for unclaimed dividend. 2021-22 was clean and there was no qualification in their
Pursuant to the provisions of Investor Education and Report. The same was duly filed with Ministry of Corporate
Protection Fund Authority (Accounting, Audit, Transfer and Affairs on 21st October, 2022.
Refund) Rules, 2016 (as amended), the Company has
The Company had re-appointed D.C. Dave & Co.,
uploaded the details of unpaid and unclaimed amounts lying
Cost Accountants, as the Cost Auditor for the financial year
with the Company as on 31st March, 2022, on the website
of the Company at www.nerolac.com. The same are also ended 31st March, 2023 and the Cost Audit Report when
available with the Ministry of Corporate Affairs. submitted by them, will be duly filed with the Ministry of
Corporate Affairs.
Transfer of Equity Shares
As required under Section 124 of the Act, 86,731 Equity Further, the Company has re-appointed D.C. Dave & Co.,
Shares, in respect of which dividend has not been claimed Cost Accountants, as the Cost Auditor for the financial
by the members for 7 (seven) consecutive years or more, year 2023-24, to conduct an audit of its cost accounting
have been transferred by the Company to the IEPF Authority records pertaining to the products of the Company as
during the financial year 2022-23. Details of such shares required by the law, at a remuneration of ₹ 3,00,000 plus
transferred have been uploaded on the website of the GST and reimbursement of out of pocket expenses. The
Company at www.nerolac.com. The same are also available Company is seeking the approval of the Shareholders by
with the Ministry of Corporate Affairs. means of ratification, for the remuneration to be paid to
Nodal Officer D. C. Dave & Co., Cost Accountants, vide Item no. 4 of the
The Company has appointed Mr. G. T. Govindarajan, Notice of the 103rd AGM.
Company Secretary as the Nodal Officer for the purpose Certificate from D. C. Dave & Co., Cost Accountants, has
of verification of claims filed with the Company in terms of been received to the effect that their appointment as Cost
IEPF Rules and for co-ordination with the IEPF Authority.
Auditor, if made, would be in accordance with the provisions
The said details are also available on the website of the
of the Act and Rules framed thereunder.
Company at www.nerolac.com.
29. Secretarial Audit 31. Business Responsibility and

Sustainability Report
Pursuant to the provisions of Section 204 of the Act, the
Company had appointed JHR & Associates, Company The Business Responsibility and Sustainability Report as
Secretaries, as the Secretarial Auditor for the year under required in terms of the provisions of Regulation 34(2)(f) of
review, to conduct the Secretarial Audit of the Company. the SEBI Listing Regulations, separately forms part of the
The Secretarial Audit Report for the year under review Annual Report.
issued by the Secretarial Auditor is annexed to this Report
as Annexure 5. There is no qualification or adverse remark 32. Acknowledgements
in their Report.
Your Directors wish to express their grateful appreciation
Further, in terms of the provisions of Regulation 24A of for the co-operation and continued support received from
the SEBI Listing Regulations, the Company has obtained customers, parent company, collaborators, vendors,
the Secretarial Compliance Report for the year ended investors, shareholders, financial institutions, banks,
31st March, 2023, confirming compliance of the applicable regulatory authorities and the society at large during the year.
SEBI Regulations and circulars/guidelines issued
thereunder. We also place on record our appreciation for the
contribution made by our employees at all levels and for
The Company has complied with the applicable Secretarial
their commitment, hard work and support.
Standards issued by the Institute of Company Secretaries
of India.
30. Cost Audit
P. P. Shah
The Company has maintained cost records as specified by Chairman
the Central Government under Section 148(1) of the Act.
Further, the Company had appointed D. C. Dave & Co., Mumbai, 8th May, 2023
173
Annexure 1 to the Board’s Report
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

FOR THE FINANCIAL YEAR 2022-23
1. A brief outline of the Company’s CSR Policy, including : Given separately as part of this report.
overview of projects or programmes proposed to be taken
2. Composition of CSR Committee as on 31st March, 2023:

Sl. Name of Director Designation / Number of meetings of Number of meetings
No. Nature of Directorship CSR Committee held of CSR Committee
during the year attended during the year
1. Ms. Sonia Singh Independent Director 1 1
2. Mr. Anuj Jain Managing Director 1 1
3. Mr. Bhaskar Bhat Independent Director 1 1
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the
board are disclosed on the website of the Company
Composition of the CSR Committee shared above and is available on the Company’s website at
https://www.nerolac.com/our-people.html
CSR Policy - https://www.nerolac.com/financial/policies.html
CSR Projects - https://www.nerolac.com/financial/csr-projects-approved.html
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of Rule 8 of
the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report).
he Company has carried out impact assessment in terms of Rule 8(3) of the Companies (Corporate Social
T
Responsibility Policy) Rules, 2014, as amended, through an independent agency for a project having outlay of
` 1 Crore or more and that has completed not less than one year before undertaking the impact study. An executive
summary of the CSR Impact Assessment Study Report is attached. The CSR Impact Assessment Report is available
on the Company's website at https://www.nerolac.com/investors/financial-results.html.
5. Details of the amount available for set off in pursuance of sub-rule (3) of Rule 7 of the Companies (Corporate
Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any:
Sl. Financial Year Amount available for set-off Amount required to be set-off
No. from preceding financial years for the financial year, if any
(in `) (in `)
1. 2020-21 0.02 Crores Nil
2. 2021-22 0.05 Crores Nil
3. — — —
Total 0.07 Crores Nil
6. Average net profit of the Company as per Section 135(5) - ` 633.92 Crores
7. (a) Two percent of average net profit of the Company as per Section 135(5) : ` 12.68 Crores.
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.: Nil.
(c) Amount required to be set off for the financial year, if any : Nil.
(d) Total CSR obligation for the financial year (7a+7b-7c) : ` 12.68 Crores.
8. (a) CSR amount spent or unspent for the financial year:
Amount Unspent (in `)
Total Amount transferred to Amount transferred to any fund
Unspent CSR Account as per specified under Schedule VII as per
Section 135(6) second proviso to Section 135(5)
Total Amount spent for the Amount Date of Name of Amount Date of
financial year (in `) transfer the Fund transfer
12.70 Crores NIL – – NA –
174
(b) Details of CSR amount spent against ongoing projects for the financial year : There are no pending
ongoing projects under CSR as at 31st March, 2023.
(c) etails of CSR amount spent against other than ongoing projects for the financial year : ` 12.49 Crores
D
(Separately attached to this report).
(d) Amount spent in Administrative Overheads : 0.11 Crores
(e) Amount spent on Impact Assessment, if applicable : ` 0.10 Crores
(f) Total amount spent for the Financial Year (8b+8c+8d+8e) : ` 12.70 Crores
(g) Excess amount for set off, if any
Sl. Particular Amount

No. (in `)
(i) Two percent of average net profit of the company as per Section 135(5) 12.68 Crores
(ii) Total amount spent for the financial year 12.70 Crores
(iii) Excess amount spent for the financial year [(ii)-(i)] 0.02 Crores
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous 0.07 Crores
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.09 Crores
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Amount Amount spent Amount transferred to any fund Amount
No. Financial transferred to in the reporting specified under Schedule VII as remaining to
Year Unspent CSR Financial Year. per Section 135(6), if any be spent in
Account under (in `) succeeding
Section 135(6) Name of Amount Date of financial years
(in `) the Fund (in `) transfer (in `)
1. – NIL – – NIL – –
2. – NIL – – NIL – –
3. – NIL – – NIL – –
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project Name Financial Project Total Amount Cumulative Status
No. ID of the Year in duration amount spent on the amount of the
Project which the allocated project in spent at project -
project was for the the reporting the end of Completed/
commenced project Financial reporting Ongoing
(in `) Year Financial
(in `) Year
(in `)
1. – – – – – – – –
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year (asset-wise details).
(a) Date of creation or acquisition of the capital asset(s). – None
(b) Amount of CSR spent for creation or acquisition of capital asset. – NIL
(c) etails of the entity or public authority or beneficiary under whose name such capital asset is registered,
D
their address etc. – Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of
the capital asset) – Not Applicable
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per
Section 135(5) – Not Applicable
Anuj Jain Sonia Singh

Managing Director Chairperson of the CSR Committee
Mumbai, 8th May, 2023
175
BRIEF OUTLINE OF CSR POLICY

The Mission and philosophy of CSR function of the Company is “To contribute positively to the development of the society, by
acting as a good neighbour, considerate of others, playing the role of a good corporate citizen with passion and compassion.”
Hence the CSR activities undertaken by the organisation essentially focus on four core areas of Environment, Health,
Education and Community Development. The focus of the Company is to contribute to various institutions and initiatives
around the manufacturing locations to provide social services to the needy.
The CSR vision of the Company is to strive to be a responsible corporate by proactively partnering in the Environmental,
Social and Economic development of the communities through the use of innovative technologies, products as well as
through activities beyond normal business.
The Company endeavours to make a positive and significant contribution to the society by targeting social and cultural
issues, maintaining a humanitarian approach and focusing on areas in and around its plants and where its establishments
are located.
The Company would continue to carry out CSR activities as it has been carrying out over the years in the areas of Environment,
Health, Education and Community Development. In particular, the Company will undertake CSR activities as specified in
Schedule VII to the Companies Act, 2013 (including any amendments to Schedule VII and any other activities specified by
the Government through its notifications and circulars) as follows:
1. Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation,
including contribution to the Swach Bharat Kosh set up by the Central Government for the promotion of sanitation and
making available safe drinking water;
2. Promoting education, including special education and employment enhancing vocational skills especially among
children, women, elderly and the differently abled and livelihood enhancement projects;
3. Promoting gender equality, empowering women, setting up homes and hostels for women and orphans, setting up old
age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced
by socially and economically backward groups;
4. Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry,
conservation of natural resources and maintaining quality of soil, air and water including contribution to the Clean
Ganga Fund set up by the Central Government for rejuvenation of river Ganga;
5. Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and
works of art; setting up public libraries; promotion and development of traditional art and handicrafts;
6. Measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces
(CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows;
7. Training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports;
8. Contribution to the Prime Minister’s National Relief Fund or Prime Minister’s Citizen Assistance and Relief in
Emergency Situations Fund (PM CARES Fund) any other fund set up by the Central Government for socio-
economic development and relief and welfare of the scheduled castes, the scheduled tribes, other backward classes,
minorities and women;
9. (a) Contribution to incubators or research and development projects in the field of science, technology, engineering
and medicine, funded by Central Government or State Government or Public Sector Undertaking or any agency
of the Central Government or State Government; and
(b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and
autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology
(DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda,
Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information
Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian
Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific
and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and
medicine aimed at promoting Sustainable Development Goals (SDGs);
10. Rural development projects;
11. Slum area development; Explanation. - For the purposes of this item, the term `slum area' shall mean any area
declared as such by the Central Government or any State Government or any other competent authority under any
law for the time being in force;
12. Disaster management, including relief, rehabilitation and reconstruction activities.
CSR activities will be undertaken either by the Company itself or through a Trust/Section 8 Company to be established by
the Company or through any other Trust engaged in similar projects and activities. The Company may also collaborate with
other companies to carry out its CSR activities.
176
PROGRAM WISE CSR DETAILS 2022-23

Sr. No. Name of the Project / Item from the list of Local Location of the Project / Program Amount Mode of Mode of implementation -
Program activities in area spent for implemen- through Implementing Agency.
Schedule VII to (Yes/ No) the Project/ tation -
the Act. State District Programs Direct Name CSR
(₹ in Lakhs). (Yes/No) Registration
Number
A. 1 Advanced Open Livelihood & Skill YES Punjab, M.P., Kerala, ALL 521.13 NO 1.Kasturi Mrig CSR00011046
Training in Painting Enhancement Karnataka, Gujrat, Vidhya Vihar
Program Rajasthan, Andhra Samiti, Indore
Pradesh, Delhi, Goa,
Puducherry, Tamilnadu,
Maharashtra, Telangana,
U.P., Bihar, Odisha,
Uttarakhand, Haryana, 2. Karmdeep CSR00018568
Assam, Himachal Foundation,
Pradesh, Chhatisgarh, Ahmedabad
J&K, Jharkhand, M.P.,
West Bengal
2 Mobile Training Livelihood & Skill YES Uttar Pradesh & ALL 48.59 NO Kasturi Mrig CSR00011046
Academy Enhancement Karnataka Vidhya Vihar
Program Samiti, Indore
Sub Total 569.72
B. 1 Impact Assesment Impact Assessment YES MAHARASHTRA MUMBAI 10.44 YES
of CSR Activities
2021-22
2 Implementation of Administrative YES MAHARASHTRA MUMBAI 10.52 YES
Online CSR Platform Overheads
for CSR Activities
Sub Total 20.96
C. 1 Health Camp for Preventive Health YES HARYANA REWARI 1.20 YES
villagers near Bawal Care & Sanitation
Plant
2 Awareness sessions Preventive Health YES HARYANA REWARI 1.14 YES
for Girl Students from Care & Sanitation
various Govt. schools
at Bawal and Rewari
3 Health Camp for Preventive Health YES HARYANA REWARI 7.80 YES
villagers near Bawal Care & Sanitation
Plant
4 Providing Inverter Preventive Health YES HARYANA REWARI 0.53 YES
and Battery to ESIC Care & Sanitation
dispensary in Bawal
5 Construction of Toilets Preventive Health YES TAMIL NADU KRISHNAGIRI 5.80 YES
and Urinals at Govt. Care & Sanitation
ITI College at Hosur
6 Construction of Toilet Preventive Health YES TAMIL NADU KRISHNAGIRI 4.02 YES
blocks at Govt. Higher Care & Sanitation
Secondary School,
Enusonai
7 Health camps Preventive Health YES TAMIL NADU KRISHNAGIRI 2.29 YES
and distribution of Care & Sanitation
spectacles for villagers
near Hosur Plant
8 Medical Camps Preventive Health YES GUJARAT BHARUCH 2.08 YES
for villagers at Care & Sanitation
Bhersham,Vagra
9 Support to Govt’s “TB Preventive Health YES GUJARAT BHARUCH 3.98 NO Vishakha Baa CSR00010788
Mukt Bharat Abhiyan" Care & Sanitation Foundation
in Vagra Taluka.
10 Providing Medical Preventive Health YES GUJARAT BHARUCH 12.05 YES
equipment to Care & Sanitation
Sevashram Hospital,
Bharuch
11 Construction of 2 Nos Preventive Health YES UTTAR PRADESH KANPUR 11.25 YES
Toilets at Primary Care & Sanitation DEHAT
& Higher Primary
School,Swarooppur,
Jainpur.
12 Construction of 2 Nos Preventive Health YES UTTAR PRADESH KANPUR 11.25 YES
Toilets at Dayanand Care & Sanitation DEHAT
College, Badhapur
13 Health camps for Preventive Health YES UTTAR PRADESH KANPUR 5.56 YES
villagers near Jainpur Care & Sanitation DEHAT
Plant
14 Health camps for Preventive Health YES UTTAR PRADESH KANPUR 4.54 YES
villagers near Jainpur Care & Sanitation DEHAT
Plant
177
PROGRAM WISE CSR DETAILS 2022-23 (contd.)

Number
15 Cataract Surgeries Preventive Health YES PUNJAB TARN TARAN 15.00 YES
for poor local Care & Sanitation
villagers,Kapurthala
16 Medical camp Preventive Health YES PUNJAB TARN TARAN 2.50 YES
for villagers near Care & Sanitation
Goindwal Sahib Plant
17 Ambulance to Civil Preventive Health YES PUNJAB TARN TARAN 19.78 YES
Hospital,Kapurthala Care & Sanitation
18 Installation of Solar Preventive Health YES PUNJAB TARN TARAN 23.13 YES
Panel at Civil Hospital, Care & Sanitation
Khadursahib
19 Awareness boards Preventive Health YES PUNJAB TARN TARAN 2.00 YES
pertaining to TB/ Care & Sanitation
Maleria / HIV/ Covid19
etc.at Civil Hospital,
Kapurthala
20 Medical camp for Preventive Health YES MAHARASHTRA RATNAGIRI 1.28 YES
villagers near Lote Care & Sanitation
Plant
Plant
Womens near Lote Care & Sanitation
Plant
Plant
Sub Total 142.02
D. 1 AC donation to Police Rural Development / YES HARYANA REWARI 1.45 YES

Station for community Community
Development
2 Support for Govt's Rural Development / YES HARYANA REWARI 0.70 YES
“Har Ghar Tiranga “ Community
Campaign Development
3 Support for Chess Rural Development / YES TAMIL NADU KRISHNAGIRI 5.00 YES
Olympiod sports Community
Development
4 Repairing and Rural Development / YES TAMIL NADU KRISHNAGIRI 0.09 YES
Maintenance of Bus Community
Shelter at Mornapalli Development
5 Providing Battery Rural Development / YES TAMIL NADU KRISHNAGIRI 0.55 YES
operated and Community
manually operated Development
Tricycle for Physically
handicapped women
near Hosur Plant
6 Construction of Bore Rural Development / YES TAMIL NADU KRISHNAGIRI 5.78 YES
well and Installation of Community
RO ATM at Soolagiri Development
7 Financial assistance Rural Development / YES TAMIL NADU KRISHNAGIRI 9.36 YES
to Hosur Industries Community
Association for Development
construction of Skill
Development Centre
near Hosur Plant
8 Renovation of Rural Development / YES MAHARASHTRA RATNAGIRI 2.87 YES

Community Hall at Community
Awashi Village Development
9 Providing ARSST Rural Development / YES MAHARASHTRA RATNAGIRI 2.50 YES

Test Machine in Lote Community
MIDC area at Gharda Development
Institute
10 Women Empowerment Rural Development / YES MAHARASHTRA RATNAGIRI 0.86 NO Dishantar CSR00003091
project with NGO Community Sanstha,
Dishantar at Development Chiplun
Mandavkhari, Chiplun
178

Number
11 Upliftment of rural Rural Development / YES MAHARASHTRA RATNAGIRI 0.26 YES

youth for National & Community
International Sports at Development
Chiplun
12 Construction of Bore Rural Development / YES MAHARASHTRA RATNAGIRI 9.43 YES

well, Awashi, Khed Community
Development
13 Construction of Bore Rural Development / YES MAHARASHTRA RATNAGIRI 0.93 YES

well, Kelne, Khed Community
Development
14 Providing Water Rural Development / YES MAHARASHTRA RATNAGIRI 0.35 YES

Cooler at Public Community
Health Centre, Development
Koregaon
15 Providing Computer Rural Development / YES MAHARASHTRA RATNAGIRI 0.62 YES

& Printer at Public Community
Health Centre, Development
Koregaon
16 Providing Bus Pickup Rural Development / YES MAHARASHTRA RATNAGIRI 1.60 YES
shed at Shivtar, Khed Community
Development
17 Providing Drinking Rural Development / YES GUJARAT BHARUCH 1.95 YES

water facility with Community
RO at Shantiniketan Development
School, Bharuch
18 "Stitching Training Rural Development / YES GUJARAT BHARUCH 5.70 NO Vishaka Baa CSR00010788
Course” for women Community Foundation
from underprivileged Development Trust
community from
surrounding villages
19 Bus shelter Rural Development / YES GUJARAT BHARUCH 1.30 YES
Renovation at various Community
villages near Sayakha Development
Plant
20 Construction of Water Rural Development / YES GUJARAT BHARUCH 5.14 YES
Tank at Kolwana Community
vallage, Vagra Development
21 Providing furniture for Rural Development / YES GUJARAT BHARUCH 1.36 YES
community to Vagra Community
Police Station,Bharuch Development
22 Providing Outdoor Rural Development / YES GUJARAT BHARUCH 4.76 YES
playing equipment at Community
Haldar Primary School Development
and at Vilayat Primary
School, Vagra
23 Shed renovation Rural Development / YES GUJARAT BHARUCH 2.43 YES
and Paver block Community
construction at Development
Argama village
Dharmashala
24 Upliftment of rural Rural Development / YES PUNJAB TARN TARAN 2.82 YES
youth for National & Community
International Sports at Development
Tarn Taran,Goindwal
Sahib
25 Installation of water Rural Development / YES PUNJAB TARN TARAN 9.44 YES
cooler/ RO/Filters at Community
Govt.Health Centre Development
in Tarn Taran &
Kapurthala
26 Construction of 2 Nos Rural Development / YES PUNJAB TARN TARAN 3.25 YES
S.S. Cabin with table Community
for community at Development
Goindwal Sahib
27 Construction of Room Rural Development / YES PUNJAB TARN TARAN 8.85 YES
& Shed for Gym Community
Equipment in Park at Development
Kapurthala, Goindwal
Sahib.
28 Installation of Gym Rural Development / YES PUNJAB TARN TARAN 9.15 YES
Equipment in Parks at Community
Kapurthala,Goindwal Development
Sahib.
179

Number
29 Installations of 15 Rural Development / YES MAHARASHTRA MUMBAI 51.75 YES

New Pickup Sheds Community
& Renovation of 25 Development
Pickup Sheds in
Srinagar
30 “Thermoplastic Road Rural Development / YES MAHARASHTRA MUMBAI 10.47 YES
Marking Work” at Community
various Junctions in Development
South Mumbai.
Sub Total 160.72
E. 1 Installation of Solar Promoting YES HARYANA REWARI 2.59 YES
Panel in Government Education
High School, Dhis
village near Bawal
Plant
2 Installation of Solar Promoting YES HARYANA REWARI 2.59 YES
Panel in Government Education
High School, Baghtala
village near Bawal
Plant
3 Pace setting Activity Promoting YES HARYANA REWARI 5.00 YES
(Educational Training Education
and Guidance) to poor
Students, Raliyawas
4 Renovation of Science Promoting YES HARYANA REWARI 4.73 YES
Labs, Drinking Water Education
facility, tiling of inner
pathways, Installation
of Solar power plant,
Construction of
boundary wall, class
room, cycle stand in
Govt School,Tatarpur
5 Renovation of Class Promoting YES HARYANA REWARI 6.85 YES
room, Verandah Education
in Govt. primary
school,Jathuwas
village
6 Providing school Promoting YES HARYANA REWARI 3.00 YES
desks for Govt primary Education
school, Rewari
7 Providing Solar lights, Promoting YES HARYANA REWARI 8.79 YES
Set up of library, Education
Repairing Work at mid
day meal kitchen in
Govt Sr. Secondary
school,Jarthal,Rewari
8 Repair & Maintenance Promoting YES HARYANA REWARI 2.77 YES
of play ground and Education
hostel outside area in
Jawahar Navodaya
vidyalaya,Naichana
9 Providing school Promoting YES HARYANA REWARI 2.72 YES
desks for Govt primary Education
school, Rewari
10 Flooring work at Promoting YES HARYANA REWARI 3.70 YES
Nandrampur bas Govt. Education
school.
11 Renovation of Class Promoting YES TAMIL NADU KRISHNAGIRI 5.78 YES
Rooms, painting, Education
electrification of
borewell and shed
for students at Govt.
Higher Secondary
School, Enusonai
12 Providing various Promoting YES TAMIL NADU KRISHNAGIRI 0.50 YES
Educational material Education
to Rajaji memorial
High school,
Perandapalli, Hosur
13 Providing Desktop Promoting YES TAMIL NADU KRISHNAGIRI 0.99 YES
Computers to Fathima Education
Primary School,
Mathigiri
180

Number
14 Development of Model Promoting YES UTTAR PRADESH KANPUR 16.24 YES

Anganwadi Centre Education DEHAT
at Pauraukh village,
Kanpur Dehat
15 Providing LCD TV Promoting YES MAHARASHTRA RATNAGIRI 0.48 YES
for Digital learning Education
at Ramvardayni
Vidylaya, Nirbade
for Digital learning Education
at Prabhat High
School,Shivtar
17 providing LCD TV for Promoting YES MAHARASHTRA RATNAGIRI 0.28 YES
Digital learning at Z.P. Education
School, Dhamandevi
for Digital learning at Education
Z.P. School, Velanb,
Guhagar
for Digital learning at Education
Z.P. School, Shirgoan,
Khed
20 Distibution of School Promoting YES MAHARASHTRA RATNAGIRI 2.51 YES
bags & educational Education
material for needy
children of nearby
villages such as
Dhamandevi,
Songaon, Kotavali,
Awashi, Gunde
21 Renovation of Class Promoting YES MAHARASHTRA RATNAGIRI 2.98 YES
rooms at Z.P. School, Education
Nirvhal
22 Construction of Promoting YES MAHARASHTRA RATNAGIRI 11.98 YES
Science labaoratory at Education
Shri Ram Education
Society, Chiplun
23 Construction of Promoting YES MAHARASHTRA RATNAGIRI 11.52 YES
Science labaoratory Education
at Hindavi Garjana
Vidyalay, Awashi
24 Construction of Promoting YES GUJARAT BHARUCH 3.90 YES
Boundary wall in MM Education
Patel school, Vagara
25 Distibution of School Promoting YES GUJARAT BHARUCH 5.44 YES
bag & Stationary Education
at 5 Schools near
Sayakha Plant
26 Construction of Promoting YES GUJARAT BHARUCH 2.76 YES
Boundary wall & Education
Main Gate at Vagara
Girls Primary School
school, Vagara
27 Providing Desktop Promoting YES GUJARAT BHARUCH 1.46 YES
Computers to Education
Dayadara Higher
Secondary
School,Dayadara
28 Water Proofing at The Promoting YES GUJARAT BHARUCH 2.53 YES
Police HQ Primary Education
School, Bharuch
29 Distibution of School Promoting YES GUJARAT BHARUCH 1.03 YES
bags & Educational Education
material at Rahad
Primary School, Vagra
30 Renovation of School Promoting YES GUJARAT BHARUCH 3.77 YES
building at Bharuch Education
Shantiniketan School
31 Providing benches in Promoting YES PUNJAB TARN TARAN 3.92 YES
Govt. Primary School, Education
Tarn Taran, Goindwal
Sahib
Sub Total 122.25
181

Number
F. 1 Beautification of Park Ensuring YES HARYANA REWARI 4.50 YES

at Mahendergarh, Environmental
Bawal Sustainability
2 Painting of various Ensuring YES HARYANA REWARI 2.17 YES
Govt. Offices at Environmental
Rewari Sustainability
3 Painting of Govt. Ensuring YES HARYANA REWARI 8.50 YES
School Building at Environmental
Nikhri Sustainability
4 Painting and Ensuring YES HARYANA REWARI 15.50 YES
Renovation work in Environmental
College at Bawal Sustainability
5 Painting of School Ensuring YES HARYANA REWARI 7.17 YES
Building at Govt. Environmental
School, Palhawas Sustainability
6 Painting of School Ensuring YES HARYANA REWARI 9.38 YES
Building at Govt.Girls Environmental
Sr.Secondary School, Sustainability
Majra Swaraj
7 School Building Ensuring YES HARYANA REWARI 4.50 YES
painting at Govt. Environmental
Model School, Sustainability
Jaliywas
8 Painting of Public Ensuring YES HARYANA REWARI 2.65 YES
Health Centre,Rewari Environmental
& Takri Sustainability
9 Installation of Solar Ensuring YES HARYANA REWARI 5.50 YES
Street lights at various Environmental
vilages near Bawal Sustainability
Plant
10 Cleaning at Parking Ensuring YES TAMIL NADU KRISHNAGIRI 0.62 YES
Area Environmental
Sustainability
11 Providing Paint Ensuring YES TAMIL NADU KRISHNAGIRI 1.00 YES
Material to Govt. Environmental
Higher Secondary Sustainability
School, Enusonai
12 Class Rooms and Ensuring YES TAMIL NADU KRISHNAGIRI 4.86 YES
building Painting at Environmental
Govt.Boys Higher Sustainability
Secondary School,
Denkanikotta
13 Class Rooms and Ensuring YES TAMIL NADU KRISHNAGIRI 5.27 YES
building Painting Environmental
at Govt.Higher Sustainability
Secondary School,
Udanapalli
14 Painting of Ensuring YES TAMIL NADU KRISHNAGIRI 2.43 YES
Annai Aravindar Environmental
Rehabilitation school Sustainability
(Special children
School) at Bharathi
Dasan Nagar
15 Pond Rejuvenation Ensuring YES TAMIL NADU KRISHNAGIRI 21.77 YES
Project at Environmental
Alasanatham, Hosur Sustainability
16 Maintenance of Green Ensuring YES TAMIL NADU KRISHNAGIRI 1.86 YES
belt area of SIPCOT Environmental
near Hosur Plant Sustainability
17 Installation of Solar Ensuring YES MAHARASHTRA RATNAGIRI 1.03 YES
Street lights at Sheldi, Environmental
Khed Sustainability
18 Tree Plantation in area Ensuring YES MAHARASHTRA RATNAGIRI 0.94 YES
near Lote Plant Environmental
Sustainability
19 Providing Paint to Ensuring YES MAHARASHTRA RATNAGIRI 8.27 YES
various educational Environmental
institutes near Lote Sustainability
Plant
20 Painting of Shikshan Ensuring YES MAHARASHTRA RATNAGIRI 12.55 YES
Prasarak Mandal Environmental
School,Chiplun near Sustainability
our Lote Plant
182

Number

Maharashtra High Environmental
School, Chiplun Sustainability
22 Providing Paint to ZP Ensuring YES MAHARASHTRA RATNAGIRI 0.16 YES
School,Dalvatane Environmental
Sustainability
schools at Morawane, Environmental
Waloti, Dalwatane Sustainability
24 Providing Paint to ZP Ensuring YES MAHARASHTRA RATNAGIRI 0.23 YES
School Posare Environmental
no. 2, Posare Sustainability
25 Providing Paint to Haji Ensuring YES MAHARASHTRA RATNAGIRI 1.02 YES
S.M Mukaddem High Environmental
School, Khed Sustainability
Shradha Shikshan Environmental
Sanstha, Dapoli Sustainability
Suman Vidyalay,Terav Environmental
Sustainability
Z.P.School, Kapsal Environmental
Sustainability
29 Providing Paint to Lote Ensuring YES MAHARASHTRA RATNAGIRI 1.00 YES
Industrial Association, Environmental
Lote Sustainability
Tatyasaheb Natoo Environmental
School, Mundhar Sustainability
MSEDCL Lote Environmental
Sustainability
32 Providing Paint to Z. P. Ensuring YES MAHARASHTRA RATNAGIRI 0.54 YES
School Talsure Environmental
Sustainability
LPIA, Lote Environmental
Sustainability
34 Providing Paint to Z. P. Ensuring YES MAHARASHTRA RATNAGIRI 0.23 YES
School, Satvingaon Environmental
Sustainability
35 Providing Paint to Z. Ensuring YES MAHARASHTRA RATNAGIRI 0.29 YES
P. School, Chirani Environmental
Sustainability
36 Providing Paint to Z.P. Ensuring YES MAHARASHTRA RATNAGIRI 0.50 YES
School, Posare no 1 Environmental
Sustainability
37 Providing Paint Ensuring YES MAHARASHTRA RATNAGIRI 0.32 YES
to Z.P. School Environmental
Gunde,Tambadwadi Sustainability
Anganwadi, Kumbharli Environmental
Sustainability
School, Udhale Environmental
Sustainability
School, Aayni Environmental
Sustainability
School, Parshuram Environmental
Sustainability
42 Construction of RCC Ensuring YES MAHARASHTRA RATNAGIRI 18.80 YES
protection wall to pond Environmental
at Gunde Village Sustainability
43 Cleanliness drive & Ensuring YES UTTAR PRADESH KANPUR 0.50 YES
Plastic Waste disposal Environmental DEHAT
drive at Pukhranya, Sustainability
Kanpur Dehat
183

Number
44 Pond Rejuvenation Ensuring YES UTTAR PRADESH KANPUR 31.11 YES

Project at Shiv Sagar Environmental DEHAT
Talab, Kripalpur, Sustainability
Kanpur Dehat
45 Painting of Vagra Ensuring YES GUJARAT BHARUCH 3.01 YES
Primary Boys School, Environmental
Vagra Sustainability
46 Painting of 3 Primary Ensuring YES GUJARAT BHARUCH 10.85 NO Rotary Welfare CSR00004051
School buildings Environmental Trust, Bharuch
through "Rotary Club Sustainability
of Bharuch" near our
plant
47 Painting of Sardar Ensuring YES GUJARAT BHARUCH 2.20 YES
Patel Trust Hospital at Environmental
Ankaleshwar Sustainability
48 Painting of Shri Anandi Ensuring YES GUJARAT BHARUCH 2.05 YES
Ma Medical Centre at Environmental
Nikora village Sustainability
49 Pond Rejuvenation at Ensuring YES GUJARAT BHARUCH 24.16 YES
Ankot village Environmental
Sustainability
50 Maintenance of Green Ensuring YES MAHARASHTRA MUMBAI 0.21 YES
Belt near Dadar Environmental
Station, Mumbai Sustainability
51 Painting at various Ensuring YES MAHARASHTRA MUMBAI 1.10 YES
locations at Dadar Environmental
Railway Station, Sustainability
Mumbai
52 Providing Paint to Ensuring YES MAHARASHTRA MUMBAI 0.27 YES
Fisat Engineering Environmental
college , Angamali Sustainability
53 Providing Paint Ensuring YES MAHARASHTRA MUMBAI 3.75 YES
to Sir Ratan Tata Environmental
Institute,Mumbai Sustainability
54 Painting of Emergency Ensuring YES PUNJAB TARN TARAN 8.31 YES
Ward at Civil Hospital Environmental
Kapurthala, Goindwal Sustainability
Sahib
55 Maintenance of Parks Ensuring YES PUNJAB TARN TARAN 3.96 YES
at Goindwal Sahib and Environmental
Dhunda villages Sustainability
Sub Total 244.97
G 1 Development of Restoration of YES MAHARASHTRA MUMBAI 3.75 YES
War Memorial Park, Buildings and
Colaba, Mumbai Sites of Historical
Importance
2 Painting of Heritage Restoration of YES UTTAR PRADESH AYODHYA 1.05 YES
Property at Ramlala Buildings and
Sadan,Ayodhya Sites of Historical
Importance
3 Donation to "A Restoration of YES MAHARASHTRA MUMBAI 5.00 NO A Hundred CSR00000091
Hundred Hands" Buildings and Hands
(NGO) to encourage Sites of Historical
tribal painters and Importance
artists at Art Salute
initiative.
Sub Total 9.80
GRAND TOTAL 1270.44
Implementing Agencies for CSR Activities -

1 Kasturi Mrig Vidhya Vihar Samiti, Indore
2 Karmdeep Foundation, Ahmedabad
3 Rotary Welfare Trust, Bharuch
4 Sevashram Hospital Trust, Bharuch
5 Dishantar Sanstha, Chiplun
6 A Hundred Hands (NGO), Bengaluru
7 SoulAce Consulting Pvt.Ltd., Kolkata
8 Vishaka Baa Foundation Trust, Bharuch
184
Executive summary of the CSR Impact Assessment Study Report

Project: Skill Enhancement Project (Advance Open and Mobile Training Academy for Painters)
Implementing Partner: Kasturi Mrig and Karamdip NGO
Research Methodology
Year of Type of Sample Covered Project Location Stakeholders

Implementation Beneficiaries Classroom Maharashtra, Kerala, Covered
2021-2022 Painters Training 250, Karnataka, Gujrat, Mobile Van staff and
Mobile Training Uttar Pradesh, Uttarakhand, Participants, NGO staff,
Van – 250 Chattisgarh, Orissa, Wesh Advance Open Training
Bengal and Rajasthan. Staff and Participants
Project Background
Kansai Nerolac Paints Limited partnering with Kasturi Mrig and Karamdi NGO implemented the skill enhancement project
aimed to enhance the skills of painters. This program was delivered in two ways, training sessions through the mobile van
and advanced open training in FY 2021-2022. It primarily aimed to increase the knowledge of the painter community about
new technologies and techniques. It was implemented all over India and covered about 24 states 46667 painters received
skill enhancement training.
Findings of the Study

Advance Open Training
● The majority of the participants 57% belong to the age group of 25 to 35 years.
● Education qualification of the majority of participants 54% is 10th and 12th std.
● The income of the majority of participants 85% before the training was between 10000rs. to 20000rs.
● Product upgradation training is received by the 97% of the participants.
● Training timings were convenient for all the participants.
Mobile Training Academy

● The majority of the participants 57% belong to the age group of 31 to 40 years.
● The education qualification of the majority of participants 56% is 10th and 12th std.
● 88% of the participants reported mobile vans were visited once.
● 52% of participants reported that Information about new painting technology was covered in the training session.
Impact Created
Advance Open Training
● The majority of the participants 75% earned more than 20000rs post-training prior to the training only 15% of participants
were earning more than 20000rs.
● 63% of the participants are getting additional jobs based on enhanced skills.
● The majority of the participants 98% rated the program as very good to excellent.
Mobile Training Academy

● Participants reported the benefits of the training program. 89% said they gain knowledge about new products, 71% said
they gain knowledge about new painting, and 65% reported their business improved.
● 78% of the participants received safety equipment as a gift.
● The majority of the participants 67% rated the program as very good to excellent.
Rating based on OECD Framework

Relevance Effectiveness Impact
Coherence Efficiency Sustainability
Index: 5 Points - Very High; 4 Points - High; 3 Points - Moderate; 2 Points - Low; 1 Point - Very Low
185
Annexure 2 to the Board's Report
DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12)

OF THE COMPANIES ACT, 2013 READ WITH RULE 5 OF THE COMPANIES (APPOINTMENT AND
REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
(a) The ratio of the remuneration of each Director to the Median Remuneration of the employees of the Company for the
financial year 2022-23 and
(b) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company
Secretary or Manager, if any in the financial year.
Sr. Name of Director/ Key Managerial Remuneration Percentage increase Ratio of

No. Personnel ('KMP') and Designation@ of Director/ KMP in remuneration for remuneration
for financial year the financial year of each
2022-23 2022-23 Director/ KMP
(` in Lakhs) (` in Lakhs) to the median
remuneration
of employees
1 Mr. P.P. Shah 45.00 3.45 19.48

Chairman
Non-Executive and Independent Director
2 Mr. Anuj Jain 326.73^ # NA$ 39.90

Managing Director - w.e.f. 1st April, 2022
3 Mr. H. Nishibayashi* – – –
Non- Executive Director
4 Ms. Sonia Singh 40.25 16.67 4.92

Non-Executive and Independent Director
5 Mr. Shigeki Takahara* – – –

6 Mr. Takashi Tomioka* – – –

7 Mr. Bhaskar Bhat 2.50 NA 0.31

Non-Executive and Independent Director -
w.e.f. 10th August, 2022
8 Mr. P. D. Pai 159.51^ 21.92 19.48

Chief Financial Officer
9 Mr. G.T. Govindarajan 84.68^ 29.62 10.34

Company Secretary
@
Information is given for Directors / KMPs as on 31st March, 2023.
^ Remuneration mentioned in the case of the Managing Director and other KMPs is the income earned during the financial year
2022-23 as reflected in the Income-tax Computation Sheet as “Gross Income” (inclusive of perquisites). It excludes the Company's
contribution to Provident Fund and Superannuation. As the future liabilities for gratuity, leave encashment along with medical
benefits are provided on an actuarial valuation basis for the Company as a whole, the amount pertaining to each individual is not
ascertainable and therefore not included above. It also excludes the restricted stock units granted during financial year 2022-23,
which is subject to the vesting conditions in terms of Kansai Nerolac Paints Limited - Restricted Stock Unit Plan 2022.
#
Mr. Anuj Jain has received commission of Rs. 95 Lakhs during the financial year 2022-23 for the financial year 2021-22. The Board
of Directors, at its meeting held on 8th May, 2023, has approved commission of Rs. 250 Lakhs for the financial year 2022-23,
which will be paid during the financial year 2023-24.
$
The percentage increase is not applicable since the office held by Mr. Anuj Jain during the financial year 2022-23 is not the same
as held by him during the previous financial year.
* Mr. H. Nishibayashi, Mr. S. Takahara and Mr. T. Tomioka did not receive any sitting fees for attending Board Meetings nor were
they paid any commission.
186
(c) The median remuneration of employees of the Company for the year increased by 7.8% compared to the previous
financial year.
(d) The number of permanent employees on the rolls of the Company is 3379 as on 31st March, 2023
(e) Average percentage increase made in the salaries of employee other than KMP in the financial year 2022-23 was
10.4%. The percentage increase in the remuneration of KMP was 34.41%.
(f) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy of the Company.
(g) The statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees
as required under Section 197(12) of the Act read with Rule 5(2) and Rule 5(3) of the Companies (Appointment
and Remuneration of Key Managerial Personnel) Rules, 2014, is provided in a separate Annexure forming a part of
the Report. Further, the Annual Report is being sent to the Members excluding the aforesaid Annexure. In terms of
Section 136 of the Act, the said Annexure will be available for inspection of the Shareholders through electronic mode.
Shareholders may write to the Company at [email protected] in that regard.
(h) None of the employees listed in the said Annexure is a relative of any Director in the Company.
(i) There was no employee either throughout the financial year or part thereof who was in receipt of remuneration which,
in the aggregate, was in excess of that drawn by the managing director or whole-time director and who held by himself
or along with his spouse or dependent children, not less than two percent of the equity shares of the Company.
P. P. Shah
Chairman
187
DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY,

TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO,
AS PRESCRIBED UNDER RULE 8(3) OF THE COMPANIES (ACCOUNTS) RULES, 2014
A. Conservation of Energy
We continue to accord utmost importance on saving and efficient usage of energy. Efficient and judicious use of
energy sources has been our prime objective. In line with the energy saving goal, considerable investments have been
made across organisation to improve the overall energy consumption.
We aim to gradually adopt new concepts and technologies which further lead to diversification of energy mix to reduce
dependence on fossil fuels and to cut emissions. We have made considerable investments across organisation to
enhance the Green Energy footprint thereby reduce dependency on Grid Power and fossil fuels. Plans are in place for
enhancing solar and wind power footprint in line with corporate RE 70 theme.
We are also exploring technologies like Fuel cell, Geothermal Energy, solar battery storage etc., which would be
regularly used in times to come.
The Company measures progress in energy management through various key indicators of specific power consumption,
specific fuel consumption, Grid power outage, power cost, power losses, Green Energy percentage footprint etc.
We also track quantum of renewable power generated through self-owned power plants as well as through open
access mechanism where in power is sourced through developers/Independent power producers via suitable power
purchase agreements as well as shareholding agreements. Renewable power as a percentage of total power is
tracked month on month and initiatives are consistently explored for increasing this quantum in line with Corporate
RE 70 vision.
We have a strategy in place for eliminating use of fossil fuels (High speed diesel) in our process equipments through
migration to Natural Gas which is environment friendly fuel. Wherever feasible we are also migrating to electric
Fork Lifts.
(i) Steps taken or impact on conservation of energy:

At Kansai Nerolac Paints Limited, we continue to adopt measures to overcome the sustainability challenge.
Measures are being taken to reduce energy consumption through efficiency improvement projects viz;
a) Replacement of AHU blower fans with new energy efficient blowers
b) Replacement of old motors and chillers with new and energy efficient ones.
c) Horizontal deployment of energy management system for real time Energy tracking, better analysis and
identify areas of improvement.
d) Interlock on blowers with equipment operations to stop idle running of blowers
e) Semi auto cleaning of Solar PV modules thereby ensuring plant running on optimal efficiencies as well as
enhanced safety.,
f) Optimizing compressed air network based on loading and utilization, regular leak tests, pump up tests to
ensure efficient operations of compressed air network.
g) Efficiency checks of cooling and chilling pumping systems to ensure pumps operate at their nearest
duty points.
(ii) Steps taken by the Company for utilizing alternate sources of energy:
Following carbon neutrality projects have been implemented in financial year 2022-23:
1. Installation of phase 2 rooftop solar power plant of 1.2 MW at Bawal and 0.57 MW at Jainpur
2. Installation of 2 numbers of Captive wind turbines of 2.1 MW each at Hosur
3. Sourcing of solar power through Group captive route at Jainpur. Power purchase and share holding
agreements signed with Amplus Energy
4. Sourcing of wind power through for third party Ms Oasis Energy at Lote.
With above projects, our renewable power green footprint for all 8 plants stands at 30%.
(iii) Capital investment on energy conservation equipment: ₹ 896.1 Lakhs
188
B. Technology Absorption
(i) Efforts made towards technology absorption.
Following activities carried out in Research and Development:
— Development of new products for Automotive, Performance Coating and Decorative segments
— Innovative shade development & color forecasting for OEM industry
— Upgradation of processes for cycle time reduction and energy saving
— Localization of New technology Products and intermediates for automotive coating
— Green initiatives - Development of Low bake & High solid products for OE Industries to reduce VOC &
Carbon footprint, Sustainable product development.
— Formulation optimization by value engineering
— Import substitution of raw materials
— Joint projects with vendor & customers for mutual benefit & quality enhancement
— Technical support to overseas subsidiaries for new product development, value engineering, Alternate/
New Raw material development etc.
— Competitor sample evaluation and benchmarking
— Support to customers for smooth introduction of new shades & products on running production line.
— Training to customers on paint Technology & Application to upgrade knowledge & skill.
(ii) Benefits derived like product improvement, cost reduction, product development or import substitution:
Below range of products has helped us to generate additional business by way of New Product and product
upgradation, also it covers the list of products where we have done cost reduction and import substitution which
has helped to improve our margins.
— Excel Everlast 12.
— Nerolac Economy Interior Primer
— Nerolac Economy Exterior Primer
— Nerolac 1K Epoxy Primer.
— Nerolac NXT Range in Excel Anti peel, Suraksha+, Beauty Smooth.
— Nerolac Perma No Damp+
— Nerolac Perma Damp Lock
— Admixtures for Ready Mix Concrete.
— Nerolac Wonder Wood 2K PU Interior
— Nerolac Termiprotect
— Nerolac High Solid NC sanding Sealer
— AER 2C Natural Yellow
— Nerolac WB PU Finish White
— Neromark WB RMP
— Nerocoil Metallic Finish
— Tin free CED (LB-250T)
— 2K PU HS 50 Blue
— Unibake Chrome free primer
— Flexi fuel compliance products for 2-Wheeler (E-10; E-20; E-30)
— Lead & Chrome free Moon Yellow shade for export 2W model
— Low bake ACED coating for 2W customers.
(From 170 ˚C to 150 ˚C)
— Thermal hard coat Clears for head lamps coating of two wheelers.
— PVC Seam Sealer 4W
— PVC Low density Under Body Coating.
— 3C 1B Pearl White
— T5-H Anti-chip Primer for PV
189
(iii) Details of imported technology (imported during last three years reckoned from the beginning of the
financial year):
a. Details of technology imported.
Particulars Year of Import
Retan Karplast primer - is adhesion promoter for PP Substrate 2020-21
Retan KP 200 is PU tapping clear for two wheeler’s high end motorcycle petrol tank 2020-21
Grip Eco Primer for chrome plated petrol tank of motor cycle 2020-21
Soflex 7650 PU Clear for Two wheeler application 2020-21
Low formaldehyde coatings for OEM 2020-21
Nerolac Excel Virus Guard 2020-21
Localization for PU metallic Monocoat 2021-22
High Solids Bumper Clear Coat 2021-22
Cardea Crystal clear for Refinish 2021-22
Low Bake ACED LB66 2021-22
Eco Black CED High Gloss / Circulation free Holiday 2021-22
EU 577 Paint 2021-22
AER 2C Kai Natural Yellow 2022-23
Celatect F (IND) Undercoat 2022-23
Tin free CED (LB-250T) 2022-23
Low bake ACED coating for 2W customers. (From 170 ˚C to 150 ˚C) 2022-23
T5-H Anti Chip Primer 2022-23
b. Whether the technology has been fully absorbed: Yes
c. If not fully absorbed, areas where absorption has not taken place, and the reasons thereof: The Technology
has been fully absorbed.
(iv) Expenditure incurred on Research and Development

(₹ in Crores)
Particulars FY 2022-2023 FY 2021-2022
a. Capital 0.87 0.59
b. Recurring 39.52 32.41
Total 40.39 33.00
C. Foreign Exchange earnings and outgo
Foreign Exchange earnings during the year: ₹ 10.62 Crores (2021-2022: ₹ 11.60 Crores)
Foreign Exchange outgo during the year: ₹ 1315.08 Crores (2021-2022: ₹ 1106.38 Crores)
P. P. Shah
Chairman
190

DISCLOSURE IN RELATION TO KANSAI NEROLAC PAINTS LIMITED - RESTRICTED STOCK UNIT PLAN 2022
(“RSU PLAN 2022 / PLAN”)
[Pursuant to Regulation 14 read with Part F of Schedule I of the Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021 (“SEBI SBEB & SE Regulations”) and Section 62(1)(b) of the
Companies Act, 2013 read with Rule 12(9) of the Companies (Share Capital and Debentures) Rules, 2014]
Relevant disclosures in terms of the accounting standards prescribed by the Central Government in terms of
1.
Section 133 of the Companies Act, 2013 (18 of 2013) including the ‘Guidance note on accounting for employee
share-based payments’ issued in that regard from time to time.
The disclosures are provided in Note 46 – Share based payments to the Standalone Financial Statements and
Note 45 – Share based payments to the Consolidated Financial Statements.
2. Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed
in accordance with ‘Accounting Standard 20 - Earnings Per Share’ issued by Central Government or any other
relevant accounting standards as issued from time to time.
The disclosures are provided in Note 37 – Earnings Per Equity Share to the Standalone Financial Statements and
Note 36 – Earnings Per Equity Share to the Consolidated Financial Statements.
3. escription of each ESOS that existed at any time during the year, including the general terms and conditions
D
of each ESOS
a) Date of Shareholders’ approval 25th October, 2022
b) Total number of options The total number of Restricted Stock Units (“RSUs”) to be granted under
approved under ESOS the RSU Plan 2022 shall not exceed 53,89,197 (Fifty three lakhs eighty
nine thousand one hundred ninety seven) RSUs which upon exercise
shall be convertible into not more than 53,89,197 (Fifty three lakhs eighty
nine thousand one hundred ninety seven) equity shares of face value of
₹ 1 (Rupee One) each fully paid-up. Each RSU when exercised would be
converted into one equity share of ₹ 1 (Rupee One) fully paid-up.
Further, SEBI SBEB & SE Regulations requires that in case of any corporate
action such as rights issue, bonus issue, merger, sale of division etc., a fair
and reasonable adjustment needs to be made to the RSUs granted. In this
regard, the Committee shall adjust the number and price of the RSU Plan
2022 granted in such a manner that the total value of the RSUs granted
under the RSU Plan 2022 shall remain the same after any such corporate
action. Accordingly, if any additional RSUs are issued by the Company to
the grantees for making such fair and reasonable adjustment, the ceiling
of 53,89,197 (Fifty three lakhs eighty nine thousand one hundred ninety
seven) shall be deemed to be increased to the extent of such additional
RSUs issued.
c) Vesting requirements RSUs shall vest essentially based on continuation of employment/service
as per requirement of SEBI SBEB & SE Regulations. In addition to this,
the Committee may also determine, at its sole discretion, certain criteria
like designation, period of service, performance linked parameters viz.,
revenue targets, PBT targets etc., subject to satisfaction of which the
RSUs would vest. Further, the Committee shall have the power to modify
the allocation percentage of performance and tenure based RSUs, at the
time of grant, based on business requirements.
d) Exercise price or pricing formula The Exercise Price per RSU shall be the face value of Share of the
Company as on Grant Date.
e) Maximum term of options RSUs granted on any date shall vest not later than a maximum of 4 (four)
granted years from the date of grant of RSUs as stated above.
f) Source of shares Primary
g) Variation in terms of options Not applicable
191
4. Method used to account for ESOS – Intrinsic or fair value.

The Company has estimated fair value of RSUs.
5. Where the company opts for expensing of the options using the intrinsic value of the options, the difference between
the employee compensation cost so computed and the employee compensation cost that shall have been recognized
if it had used the fair value of the options shall be disclosed. The impact of this difference on profits and on EPS of the
company shall also be disclosed.
Not Applicable
6. Option movement during the year
Number of options outstanding at the beginning of the period NA*
Number of options granted during the year 11,92,792
Number of options forfeited / lapsed during the year 12,177
Number of options vested during the year –
Number of options exercised during the year –
Number of shares arising as a result of exercise of options –
Money realized by exercise of options (INR), if scheme is implemented directly by the company –
Loan repaid by the Trust during the year from exercise price received NA
Number of options outstanding at the end of the year 11,80,615
Number of options exercisable at the end of the year –
* RSU Plan 2022 has been implemented during FY 2022-23.

7. Weighted-average exercise price and weighted-average fair value of options shall be disclosed separately for options
whose exercise price either equals or exceeds or is less than the market price of the stock.
Year ended
31 March 2023
Weighted-average exercise price per RSU ₹1
Weighted-average fair value per RSU ₹ 367.30
8. Employee wise details (name of employee, designation, number of options granted during the year, exercise price) of
options granted to -
● senior managerial personnel as defined under Regulation 16(d) of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 including Key Managerial Personnel:
Name of employee Designation No. of RSUs granted
during the year
(time based and
performance based)
Exercise price -
₹ 1 each
Mr. Anuj Jain Managing Director & CEO 1,13,636
(Key Managerial Personnel)
Mr. Prashant Pai Director – Finance and Chief Financial Officer 39,505
(Key Managerial Personnel)
Mr. G. T. Govindarajan Company Secretary (Key Managerial Personnel) 10,792
Mr. Jason Gonsalves Director – Corporate Planning, IT & Materials 43,266
Mr. Sudhir Rane Sr. Vice President – HR & International Operations 32,295
Mr. Abhijit Natoo Senior Vice President – Manufacturing 39,340
Mr. Rohit Malkani Sr. Vice President – Decorative Sales & Marketing 45,953
Mr. Amrit Rekhi Vice President – Industrial Sales 27,103
Mr. Ram Mehrotra Vice President – Decorative Sales and Marketing 27,475
Mr. Laxman Nikam Vice President – Technical 24,310
192
● any other employee who receives a grant in any one year of option amounting to 5% or more of option granted
during that year
Not Applicable
● identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued
capital (excluding outstanding warrants and conversions) of the company at the time of grant.
Not Applicable
9. A description of the method and significant assumptions used during the year to estimate the fair value of options
including the following information:
The fair value of the RSUs are determined using the
Black-Scholes Model for RSUs with time based vesting
conditions and Monte Carlo Simulation Model is used for
Method & Model RSUs with performance based vesting conditions.
Significant assumptions
The Weighted average value of share price ₹ 439.25
Exercise price ₹1
Expected volatility 32 – 35%
Expected option life 4 – 7 years
Expected dividend yield 0.6%
Risk free interest rate 7.14 – 7.23%
The method used and the assumptions made to Not applicable
incorporate the effects of expected early exercise
How expected volatility was determined, including The expected volatility of the Company’s Equity Shares is
an explanation of the extent to which expected computed on the basis of the annual volatility of the Company’s
volatility was based on historical volatility. Equity Shares traded on the Stock Exchanges, by considering
the deviations in daily returns of the Equity Shares traded,
which is averaged out and then annualized to arrive at the
annual volatility of the Company’s Equity Shares.
Whether and how any other features of the options For deriving fair value of the RSUs by the Monte Carlo
granted were incorporated into the measurement of Simulation methodology, multiple simulations related to the
fair value, such as a market condition Company’s financial projections were also considered.
193
FORM NO. MR-3

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023
[PURSUANT TO SECTION 204(1) OF THE COMPANIES ACT, 2013 AND RULE NO.9 OF THE COMPANIES
(APPOINTMENT AND REMUNERATION PERSONNEL) RULES, 2014]
The Members,
Nerolac House, Ganpatrao Kadam Marg,
Lower Parel, Mumbai-400 013
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Kansai Nerolac Paints Limited (hereinafter called ‘the Company’). Secretarial Audit was conducted in
a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing
our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained
by the Company and also the information / representations provided by the Company, its officers, agents and authorised
representatives during the conduct of Secretarial Audit, we hereby report that in our opinion, the Company has, during the
audit period covering the financial year ended on 31st March 2023, complied with the statutory provisions listed hereunder
and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter:-
We have examined the books, papers, minute books, forms and returns filed, and other records maintained by the Company,
for the financial year ended on 31st March, 2023 according to the provisions of: -
i. The Companies Act, 2013 (‘the Act’) and the rules made thereunder;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder;
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
iv. Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of Foreign
Direct Investment, and Overseas Direct Investment.
v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’): -
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
(Not applicable to the Company during audit period);
d. Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008
(Not applicable to the Company during audit period);
f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with client (Not applicable to the Company during the
audit period);
g. Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; (Not applicable to the
Company during audit period);
h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (Not applicable to the
Company during audit period);
i. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015.
There are no laws which specifically apply to the type of activities undertaken by the Company.
We have also examined compliance with the applicable clauses of the following: -
i. Secretarial Standards issued by The Institute of Company Secretaries of India as in force from time to time.
ii. The Listing Agreements entered into by the Company with National Stock Exchange of India Limited (NSE) and BSE
Limited.
194
During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations and Guidelines,
etc. mentioned above.
We further report that: -
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the
period under review were carried out in compliance with the provisions of the Act.
Adequate notice of at least seven days was given to all Directors to schedule the Board Meetings, agenda and detailed notes
on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
As per minutes of the meetings duly recorded and signed by the Chairman, the decisions of the Board were unanimous with
views of the Board members recorded in the same.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations
of the Company to monitor and ensure compliance with applicable laws, rules, regulations, and guidelines.
We further report that during the audit period, the members have approved the Kansai Nerolac Paints Limited - Restricted
Stock Unit Plan 2022 through Postal Ballot on 25th October, 2022.
Place: Thane For JHR & Associates

Date: 8th May 2023 Company Secretaries
J. H. Ranade
(Partner)
FCS: 4317, CP: 2520
UDIN: F004317E000269461
The Members,
Nerolac House, Ganpatrao Kadam Marg,
Lower Parel, Mumbai-400 013
Our report of even date is to be read along with this letter.

1. Maintenance of secretarial records is the responsibility of the management of the company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about
the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a
reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the company.
Place: Thane For JHR & Associates

Date: 8th May 2023 Company Secretaries
J. H. Ranade
(Partner)
FCS: 4317, CP: 2520
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Report on Corporate Governance

Pursuant to Schedule V(C) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“SEBI Listing Regulations”), a Report on Corporate Governance for the year ended 31st March, 2023 is
given below:
1. Company’s philosophy on Code of Governance

The Company believes in abiding by the Code of Governance so as to be a responsible corporate citizen and to serve
the best interests of all the stakeholders viz., the employees, shareholders, customers, vendors and the society at large.
The Company seeks to achieve this goal by being transparent in its business dealings, by disclosure of all relevant
information in an easily understood manner and by being fair to all stakeholders, by ensuring that the Company’s
activities are managed by a professionally competent and independent Board of Directors.
2. Board of Directors (“Board”)

(a) As on 31st March, 2023, the strength of Board was 7 (seven) Directors. The Board of Kansai Nerolac Paints Limited
comprises of Executive and Non-Executive Directors. The Managing Director is an executive director and there
are 6 (six) non-executive directors, of which 3 (three) directors including the Chairman are Independent Directors.
The Board also consists of 1 (one) woman Independent Director. The composition of the Board is in conformity
with the requirement of Regulation 17(1) of the SEBI Listing Regulations and the Companies Act, 2013 (“Act”).
The 3 (three) Non-Executive Non-Independent Directors on the Board as on 31st March, 2023, namely,
Mr. Hitoshi Nishibayashi, Mr. Shigeki Takahara and Mr. Takashi Tomioka are nominees of Kansai Paint Co., Ltd.,
Japan, the Promoter Company.
r. Anuj Jain has been appointed as the Managing Director of the Company for a period of 5 (five) years
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commencing from 1st April, 2022 and ending on 31st March, 2027 (both days inclusive).
Ms. Sonia Singh has been re-appointed as an Independent Director for a second term of 5 (five) years commencing
from 29th July, 2022 and ending on 28th July, 2027 (both days inclusive).
r. N. N. Tata resigned as an Independent Director of the Company with effect from 10th August, 2022 due to
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increased professional commitments and requirements of various Board positions. The Company has received a
confirmation from Mr. N. N. Tata that there are no other material reasons other than those provided above for his
resignation from the Board.
Mr. Bhaskar Bhat has been appointed as an Independent Director for a term of 5 (five) years commencing from
10th August, 2022 and ending on 9th August, 2027 (both days inclusive).
r. Shigeki Takahara, Non-Executive Director is resigning from the Board of the Company with effect from
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26th June, 2023.
Pursuant to Section 161(4) of the Act read with Article 114 of the Articles of Association of the Company, the Board
of Directors of the Company has, on recommendation of the Nomination and Remuneration Committee, appointed
Mr. Pravin Digambar Chaudhari (holding Director Identification Number 02171823) as a Non-Executive Director
of the Company with effect from 26th June, 2023, in the casual vacancy that is being caused by the resignation of
Mr. Shigeki Takahara.
(b)
During the year ended 31st March, 2023, 7 (seven) Board Meetings were held i.e. on 15th April, 2022,
10th May, 2022, 1st August, 2022, 14th September, 2022, 1st November, 2022, 3rd February, 2023 and 3rd March,
2023. After 31st March, 2023, two Board Meetings were held on 3rd April, 2023 and 8th May, 2023.
The last year's Annual General Meeting of the Company was held on 23rd June, 2022 by Video Conferencing / Other
Audio Visual Means.
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Report on Corporate Governance 103rd Annual Report 2023
Details of the Directors of the Company and their attendance at the Board Meetings held during the financial year
2022-23 and at the last year's Annual General Meeting of the Company, are as follows:
Name of the Director Category of Directorship No. of Attendance at
Director Identification Board Meetings the last year's
Number attended Annual General
Meeting
Mr. P. P. Shah 00066242 Chairman, Non-Executive and Independent Director 7 Yes
Mr. N. N. Tata# 00024713 Non-Executive and Independent Director 3 Yes
Mr. Anuj Jain 08091524 Managing Director 7 Yes
Mr. H. Nishibayashi 03169150 Non-Executive Director 7 Yes
Ms. Sonia Singh 07108778 Non-Executive and Independent Director 7 Yes
Mr. S. Takahara 08736626 Non-Executive Director 7 Yes
Mr. T. Tomioka 08736654 Non-Executive Director 7 Yes
Mr. Bhaskar Bhat* 00148778 Non-Executive and Independent Director 4 No
# Resigned as an Independent Director of the Company with effect from 10th August, 2022.
* ppointed as an Independent Director, for a term of 5 (five) years with effect from 10th August, 2022.
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ll Independent Directors of the Company have certified and confirmed their independence in accordance with
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Section 149 of the Act read with Regulations 16(1)(b) and 25(8) of the SEBI Listing Regulations.
(c) Number of Directorships (other than the Company) and Committees in which the Director is a Chairperson / Member
as on 31st March, 2023, is as follows:
Name of the Director No. of Directorships No. of Committees
in other public in which Chairperson / Member
limited companies (including the Company)*
Chairperson Member
Mr. P. P. Shah 7 3 8
Mr. Anuj Jain Nil Nil 1
Mr. H. Nishibayashi Nil Nil Nil
Ms. Sonia Singh 2 1 2
Mr. S. Takahara Nil Nil Nil
Mr. T. Tomioka Nil Nil Nil
Mr. Bhaskar Bhat 5 Nil 5
* In terms of the provisions of Regulation 26(1) of the SEBI Listing Regulations,
• Committee membership / chairpersonship in Committees of the Board(s) of all public companies, whether listed or not,
have been taken into consideration excluding private limited companies, foreign companies, high value debt listed
entities and companies registered under Section 8 of the Act.
• Chairpersonship and membership of Audit and Stakeholders’ Relationship Committees have been considered. Also,
the number of membership of Committees includes chairpersonship.
Details of their directorships in listed entities other than the Company and their category of directorship as on
31st March, 2023, are as follows:
Name of the Director Names of Listed Entities Category of Directorship
Mr. P. P. Shah BASF India Ltd. Non-Executive - Independent Director, Chairperson
KSB Ltd. Non-Executive - Independent Director
Pfizer Ltd. Non-Executive - Independent Director, Chairperson
Sonata Software Ltd. Non-Executive - Independent Director, Chairperson
Bajaj Auto Ltd. Non-Executive - Independent Director
Bajaj Holdings & Investment Ltd. Non-Executive - Independent Director
Ms. Sonia Singh Bharat Forge Ltd. Non-Executive - Independent Director
Mr. Bhaskar Bhat Trent Ltd. Non-Executive - Non-Independent Director
Rallis India Ltd. Non-Executive - Non-Independent Director, Chairperson
Titan Company Ltd. Non-Executive - Nominee Director
Bosch Ltd. Non-Executive - Independent Director
As on 31st March, 2023, Mr. Anuj Jain, Mr. H. Nishibayashi, Mr. S. Takahara and Mr. T. Tomioka are not directors
in any listed entity other than the Company.
The number of directorships and the positions held by Directors on board committees as on 31st March, 2023,
are in conformity with the limits laid down in the Act and the SEBI Listing Regulations.
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(d) Number of meetings of the Board held and dates on which held during the year are given in Clause 2(b) above.
(e) In terms of Regulation 36(3)(c) and Schedule V(C)(2)(e) of the SEBI Listing Regulations, none of the Directors
are related to each other. However, Mr. H. Nishibayashi, Mr. S. Takahara and Mr. T. Tomioka are the nominees of
Kansai Paint Co., Ltd. Japan, the Promoter Company.
(f) Number of Equity Shares held by Non-Executive Directors:
Name of the Director Number of Equity Shares held as on 31st March, 2023
(Own or held by / for other persons on a beneficial basis)
Mr. P. P. Shah Nil
Mr. H. Nishibayashi Nil*
Ms. Sonia Singh Nil
Mr. S. Takahara Nil*
Mr. T. Tomioka Nil*
Mr. Bhaskar Bhat Nil
* Mr. H. Nishibayashi, Mr. S. Takahara and Mr. T. Tomioka are the nominees of Kansai Paint Co., Ltd. Japan, the Promoter
Company and they did not hold any Equity Share of the Company in their personal capacity.
(g) Orientation of newly elected directors and updation strategy:

Newly elected directors are given a presentation on the functioning of the Company. Every quarter, reports of
various departments of the Company are circulated among all the Directors. These reports give specific particulars
of the respective departments. Apart from this, the Directors are intimated of the changes as and when they
happen. All the functional heads are present at the Audit Committee meeting of the Company held every quarter.
Presentations are also made to the Board of Directors by the functional heads. This ensures that the functional
heads can apprise all the Directors about the developments in their specific areas.
Access to information
Directors, including Independent Directors, can visit the various manufacturing locations of the Company. They
need not necessarily be accompanied by the Managing Director. The purpose is to ensure that the Independent
Directors have free and independent access to the Company's officials and records, so that they can form an
independent opinion about the situation of the Company.
Apart from this, reports of the audit carried out by the Internal Auditors and the Statutory Auditors are circulated to
all the Directors.
Monthly Performance Report is also forwarded to the Chairman and other Independent Directors updating them
with the performance on various parameters.
It is ensured that the Board receives qualitative and quantitative information in line with the best management
practices adopted.
The details of familiarization programme for the Independent Directors of the Company is available on the website
of the Company at https://www.nerolac.com/financial/policies.html.
Code of Conduct for Board of Directors and Senior Management

The Company has adopted a Code of Conduct for Board and Senior Management (“Code”). The Code has
been communicated to the Directors and members of the Senior Management. The Code is available on the
Company’s website at https://www.nerolac.com/financial/policies.html. All the Directors and members of Senior
Management have confirmed compliance with the Code for the year ended 31st March, 2023. A declaration to this
effect signed by the Managing Director who is the Chief Executive Officer, is separately provided at the end of
this Report.
(h) A Chart / Matrix setting out the skills / expertise / competence of the Board of Directors:
Competency is defined as the experience, knowledge, skills, attitudes, values and beliefs of the person (member).
A list of core skills / expertise / competencies identified by the Board, as required in the context of its business(es)
and sector(s) for it to function effectively and available with the Board, is as follows:
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Competencies:
Competency Definition
Strategic expertise Ability to understand, review and guide strategy by analyzing the Company’s competitive
position and benchmarking taking into account market and industry trends
Business and financial acumen Demonstrate techno-commercial and business perspective, ability to comprehend,
interpret and guide on financial statements, Audit Committee presentations and matters
of business
Risk management Experience in providing guidance on major risks, compliances and various legislations
Building high Build and nurture talent to create strong and competent future business leaders
performance teams
Industry knowledge Experience in similar industries
IT – digital acumen Ability to understand, support and guide the digital strategy in the organization with
respect to AI, IOT, MI, Robotics, Big Data Analytics
Innovation Nurture an innovation culture, encourage and embrace diverse perspectives. Ability to
understand market changes for future readiness.
Personal Qualities:
Personal quality Definition
Integrity Fulfilling a director’s duties and responsibilities, putting the organization’s interests above personal
interests, acting ethically
Curiosity and courage Must have the curiosity to ask questions and the courage to persist in asking or to challenge
management and fellow board members where necessary
Interpersonal skills Must work well in a group, listen well, be tactful but able to communicate his / her point of view
frankly
Instinct Good business instincts and acumen, ability to get the crux of the issue quickly
An active contributor The member must be one who participates and contributes actively and must allocate quality time
to the organization’s affairs
Details of the skills / expertise / competencies possessed by the Directors who were part of the Board as on
31st March, 2023, are as follows:
Name Age Qualifications Industry Experience Expertise
Mr. P. P. Shah 70 B.Com., Chartered Accountant Finance, Investments, Business Strategy,
and Cost Accountant, MBA Projects and Financial Analyst
(Harvard Business School) Consultancy
Mr. Anuj Jain 54 BSc, MMS Paint Sales, Marketing
Mr. H. Nishibayashi 59 Graduated from Osaka University Paint Sales, Marketing,
of Foreign Studies, faculty of International business
English studies
Ms. Sonia Singh 58 BA (Economics), MBA Consumer goods and Brand Strategy, Sales
services and Marketing
Mr. S. Takahara 64 BS of Accounting (Kobe University of High Technology, Finance, Business
Commerce), US-CPA Pharmaceutical, Paint Strategy
Mr. T. Tomioka 50 Graduated from Tokyo Gakugei Paint Sales, Marketing,
University, faculty of Education Business Strategy,
International
Mr. Bhaskar Bhat 68 B. Tech (Mechanical Engineering) Engineering, Manufacturing,
(IIT Madras); PGDBM (IIM Ahmedabad) Consumer goods and Business Strategy,
services, Marketing Sales and Marketing
and Administration
(i) The Board hereby confirms that in its opinion, the Independent Directors of the Company fulfill the conditions as
specified in the SEBI Listing Regulations and are independent of the management.
(j) Detailed reasons for the resignation of an Independent Director who resigns before the expiry of his/her tenure
along with a confirmation by such director that there are no other material reasons other than those provided.
uring the year, Mr. N. N. Tata resigned as an Independent Director of the Company with effect from
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10th August, 2022, due to increased professional commitments and requirements of various Board positions. The
Company has received a confirmation from Mr. N. N. Tata that there are no other material reasons other than
those provided above for his resignation from the Board.
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3. Audit Committee
The terms of reference of the Audit Committee, in accordance with the SEBI Listing Regulations, are:
(i) versight of the listed entity’s financial reporting process and the disclosure of its financial information to ensure
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that the financial statement is correct, sufficient and credible;
(ii) recommendation for appointment, remuneration and terms of appointment of auditors of the listed entity;
(iii) approval of payment to statutory auditors for any other services rendered by the statutory auditors;
(iv) r eviewing, with the management, the annual financial statements and auditor's report thereon before submission
to the board for approval, with particular reference to:
(a) matters required to be included in the director’s responsibility statement to be included in the board’s report
in terms of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013;
(b) changes, if any, in accounting policies and practices and reasons for the same;
(c) major accounting entries involving estimates based on the exercise of judgment by management;
(d) significant adjustments made in the financial statements arising out of audit findings;
(e) compliance with listing and other legal requirements relating to financial statements;
(f) disclosure of any related party transactions;
(g) modified opinion(s) in the draft audit report;
(v) reviewing, with the management, the quarterly financial statements before submission to the board for approval;
(vi) reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue,
rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the
offer document / prospectus / notice and the report submitted by the monitoring agency monitoring the utilisation
of proceeds of a public or rights issue or preferential issue or qualified institutional placement, and making
appropriate recommendations to the board to take up steps in this matter;
(vii) reviewing and monitoring the auditor’s independence and performance, and effectiveness of audit process;
(viii) approval or any subsequent modification of transactions of the listed entity with related parties;
(ix) scrutiny of inter-corporate loans and investments;
(x) valuation of undertakings or assets of the listed entity, wherever it is necessary;
(xi) evaluation of internal financial controls and risk management systems;
(xii) reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control
systems;
(xiii) r eviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing
and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
(xiv) discussion with internal auditors of any significant findings and follow up there on;
(xv) r eviewing the findings of any internal investigations by the internal auditors into matters where there is suspected
fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board;
(xvi) discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as
post-audit discussion to ascertain any area of concern;
(xvii) to look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders
(in case of non-payment of declared dividends) and creditors;
(xviii) to review the functioning of the whistle blower mechanism;
(xix) a
pproval of appointment of chief financial officer after assessing the qualifications, experience and background,
etc. of the candidate;
(xx) Carrying out any other function as is mentioned in the terms of reference of the audit committee.
(xxi) reviewing the utilization of loans and / or advances from/investment by the holding company in the subsidiary
exceeding rupees 100 crore or 10% of the asset size of the subsidiary, whichever is lower including existing
loans/advances/investments existing as on the date of coming into force of this provision.
(xxii) c onsider and comment on rationale, cost-benefits and impact of schemes involving merger, demerger,
amalgamation etc., on the listed entity and its shareholders.
In addition to the above, the Audit Committee reviews information mandatorily required to be reviewed as per the
SEBI Listing Regulations.
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As at 31st March, 2023, Mr. P. P. Shah, Ms. Sonia Singh and Mr. Bhaskar Bhat, all Non-Executive and Independent
Directors, were the members of the Audit Committee. All of them possess sound knowledge of accounts, audit, financial
management expertise etc.
Mr. N. N. Tata ceased to be a member of the Audit Committee consequent to his resignation as a Director of the
Company with effect from 10th August, 2022.
Mr. Bhaskar Bhat has been appointed as a member of the Audit Committee with effect from 10th August, 2022.
Mr. P. P. Shah is the Chairman of the Audit Committee and Mr. G. T. Govindarajan, Company Secretary acts as the
Secretary to the Audit Committee.
The Internal Auditors, who report directly to the Audit Committee and the representatives of the Statutory Auditors also
attend the meetings of the Audit Committee, besides the executives invited by the Audit Committee to be present thereat.
Mr. P. P. Shah, Chairman of the Audit Committee, was present at the last year's Annual General Meeting of the
Company held on 23rd June, 2022 by Video Conferencing / Other Audio Visual Means.
During the year ended 31st March, 2023, 4 (four) meetings of the Audit Committee were held i.e. on 10th May, 2022,
1st August, 2022, 1st November, 2022 and 3rd February, 2023.
Name of the Member Number of Audit Committee meetings attended
during the year ended 31st March, 2023
Mr. P. P. Shah 4
Mr. N. N. Tata* 2
Ms. Sonia Singh 4
Mr. Bhaskar Bhat# 2
* Resigned as a Director of the Company with effect from 10th August, 2022.
# Appointed as a member of the Committee with effect from 10th August, 2022.
After 31st March, 2023, an Audit Committee meeting was held on 8th May, 2023, whereat the Audited Financial Results
and Audited Financial Statements of the Company for the financial year ended 31st March, 2023, were reviewed,
considered and recommended by the Audit Committee to the Board.
4. Nomination and Remuneration Committee

The terms of reference of the Nomination and Remuneration Committee, in accordance with the SEBI Listing
Regulations, are:
(i) formulation of the criteria for determining qualifications, positive attributes and independence of a director and
recommend to the board of directors a policy relating to, the remuneration of the directors, key managerial
personnel and other employees;
(ii) For every appointment of an independent director, the Nomination and Remuneration Committee shall evaluate
the balance of skills, knowledge and experience on the Board and on the basis of such evaluation, prepare a
description of the role and capabilities required of an independent director. The person recommended to the
Board for appointment as an independent director shall have the capabilities identified in such description. For the
purpose of identifying suitable candidates, the Committee may:
a. use the services of an external agencies, if required;
b. consider candidates from a wide range of backgrounds, having due regard to diversity; and
c. consider the time commitments of the candidates
(iii) formulation of criteria for evaluation of performance of Independent Directors and the board of directors;
(iv) devising a policy on diversity of board of directors;
(v) identifying persons who are qualified to become directors and who may be appointed in senior management in
accordance with the criteria laid down, and recommend to the board of directors their appointment and removal;
(vi) whether to extend or continue the term of appointment of the independent director, on the basis of the report of
performance evaluation of independent directors; and
(vii) recommend to the Board, all remuneration, in whatever form, payable to senior management.
As at 31st March, 2023, Mr. Bhaskar Bhat, Mr. P. P. Shah and Ms. Sonia Singh, Non-Executive and Independent
Directors and Mr. H. Nishibayashi, Non-Executive Director were the members of the Nomination and Remuneration
Committee. Mr. N. N. Tata, Non-Executive and Independent Director ceased to be the Chairman of the Nomination and
Remuneration Committee consequent to his resignation as a Director of the Company with effect from 10th August, 2022.
Mr. Bhaskar Bhat has been appointed as the Chairman of the Committee with effect from 10th August, 2022.
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Mr. N. N. Tata was the Chairman of the Nomination and Remuneration Committee and was present at the last year's
Annual General Meeting of the Company held on 23rd June, 2022 by Video Conferencing/Other Audio Visual Means.
During the year ended 31st March, 2023, 4 (four) meetings of the Nomination and Remuneration Committee were held
i.e. on 10th May, 2022, 1st August, 2022, 14th September, 2022 and 1st November, 2022.
Name of the Director Number of Nomination and Remuneration Committee Meetings attended
Mr. N. N. Tata* 2
Mr. Bhaskar Bhat #
2
Mr. P. P. Shah 4
Ms. Sonia Singh 4
Mr. H. Nishibayashi 4
* Resigned as a Director of the Company with effect from 10th August, 2022.
#
Appointed as a member and Chairman of the Nomination and Remuneration Committee with effect from 10th August, 2022.
After 31st March, 2023, a Nomination and Remuneration Committee meeting was held on 8th May, 2023, whereat the
remuneration to be paid to the Managing Director and Senior Management for the financial year 2023-24, commission to
be paid to the Managing Director and Independent Directors for the financial year 2022-23 was determined; evaluation
of the performance of the Board, its Committees and the Directors for the financial year 2022-23 was also carried out
and discussed.
5. Stakeholders’ Relationship Committee

The terms of reference of the Stakeholders’ Relationship Committee, in accordance with the SEBI Listing Regulations, are:
(i) Resolving the grievances of the security holders of the listed entity including complaints related to transfer/
transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate
certificates, general meetings etc.
(ii) Review of measures taken for effective exercise of voting rights by shareholders.
(iii) Review of adherence to the service standards adopted by the listed entity in respect of various services being
rendered by the Registrar & Share Transfer Agent.
(iv) Review of the various measures and initiatives taken by the listed entity for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of
the Company.
As at 31st March, 2023, Ms. Sonia Singh, Mr. P. P. Shah and Mr. Anuj Jain were the members of the Stakeholders’
Relationship Committee.
r. P. P. Shah has been appointed as a member of the Stakeholders' Relationship Committee with effect from
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1st April, 2022.
Ms. Sonia Singh, an Independent Director, is the Chairperson of the Stakeholders’ Relationship Committee and she
was present at the last year's Annual General Meeting of the Company held on 23rd June, 2022 by Video Conferencing /
Other Audio Visual Means.
Mr. G. T. Govindarajan, Company Secretary, is the Compliance Officer.
During the year ended 31st March, 2023, 1 (one) meeting of the Stakeholders’ Relationship Committee was held on
3rd March, 2023, which was attended by all its members.
he Company did not receive any shareholders' complaints during the financial year 2022-23. Normally, the Company
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ensures that all queries, complaints received / clarification sought, if any, are disposed off expeditiously. The Company
had no complaint pending at the close of the financial year.
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6. Risk Management Committee

The terms of reference of the Risk Management Committee, in accordance with the SEBI Listing Regulations, are:
(1) To formulate a detailed risk management policy which shall include:

I. A framework for identification of internal and external risks specifically faced by the listed entity, in particular
including financial, operational, sectoral, sustainability (particularly, ESG related risks), information, cyber
security risks or any other risk as may be determined by the Committee.
II. Measures for risk mitigation including systems and processes for internal control of identified risks.
III. Business continuity plan.
(2) To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks
associated with the business of the Company;
(3) To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk
management systems;
(4) To periodically review the risk management policy, at least once in two years, including by considering the changing
industry dynamics and evolving complexity;
(5) To keep the board of directors informed about the nature and content of its discussions, recommendations and
actions to be taken;
(6) he appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review
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by the Risk Management Committee.
As at 31st March, 2023, Mr. P. P. Shah, Mr. Anuj Jain, Ms. Sonia Singh, Mr. Jason Gonsalves and Mr. Prashant Pai
were the members of the Risk Management Committee. Mr. Prashant Pai, Chief Risk Officer and Mr. Jason Gonsalves
are non-board members of the Risk Management Committee. Mr. P. P. Shah has been appointed as the Chairman of
the Risk Management Committee with effect from 1st April, 2022.
Mr. P. P. Shah, the Chairman of the Risk Management Committee was present at the last year's Annual General
Meeting of the Company held on 23rd June, 2022 by Video Conferencing / Other Audio Visual Means.
During the year ended 31st March, 2023, 2 (two) meetings of the Risk Management Committee were held i.e. on
15th September, 2022 and 3rd March, 2023.
Name of the Director Number of Risk Management Committee Meetings attended

Mr. P. P. Shah 2
Ms. Sonia Singh 2
Mr. Anuj Jain 2
Mr. Prashant Pai 2
Mr. Jason Gonsalves 2
7. Remuneration of Directors
The Company has adopted a Remuneration Policy for its Directors, Key Managerial Personnel and other employees.
The Remuneration Policy has laid down the criteria for determining qualifications, positive attributes, Independence of
Director and Board diversity. The Policy lays down the factors for determining remuneration of Whole-time Directors,
Non-Executive Directors, Key Managerial Personnel and other employees. The policy also lays down the performance
evaluation criteria of the Independent Directors and the Board. The Remuneration Policy is also available on the
website of the Company at https://www.nerolac.com/financial/policies.html.
The Nomination and Remuneration Committee decides the remuneration of the Whole-time Directors.
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Remuneration Policy:
A. Remuneration to Whole-time Directors:
• The remuneration paid to Whole-time Directors is subject to the limits laid down under Section 197 and Schedule V
to the Act and in accordance with the terms of appointment approved by the Shareholders of the Company.
The remuneration of the Whole-time Directors is determined by the Nomination and Remuneration Committee
based on factors such as the Company’s performance and performance / track record of the Whole‑time
Directors. The remuneration consists of Salary, Commission, Company’s contribution to Provident Fund and
Superannuation Fund, House Rent Allowance (HRA), Leave Travel Allowance (LTA) and other perquisites and
allowances in accordance with the rules of the Company, applicable from time to time.
• The Whole-time Directors are not paid any sitting fees for attending the meetings of the Board of Directors
or Committees thereof.
• he Agreement with the Whole-time Director is for a period not exceeding 5 (five) years at a time. In the
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event that there is no breach of the terms of the Agreement by the Whole-time Director, but the Company
exercises the discretion to terminate his services during the term of his Agreement, without assigning any
reason thereof, then and in that event, the Whole-time Director shall be paid a compensation in accordance
with the provisions of the Act.
he details of remuneration paid to Mr. Anuj Jain – Managing Director, during the financial year 2022-23,
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are as follows:
(` in Lakhs)
Sr. Particulars of Remuneration# Mr. Anuj Jain

No.
1 Fixed component
a. Salary as per provisions contained in Section 17(1) of the Income-Tax Act, 1961 231.40
b. Value of Perquisites u/s 17(2) of Income-Tax Act, 1961 0.33
2 Variable component (performance linked)
Commission* 95.00
Total 326.73
# Excludes Company's contribution to Provident Fund and Superannuation. As the future liabilities for gratuity, leave
encashment along with medical benefits are provided on an actuarial valuation basis for the Company as a whole, the
amount pertaining to individual is not ascertainable and therefore not included above. It also excludes the Restricted Stock
Units ("RSUs") granted during financial year 2022-23, which is subject to the vesting conditions in terms of Kansai Nerolac
Paints Limited - Restricted Stock Unit Plan 2022. Details of RSUs granted during financial year 2022-23 is annexed to the
Board's Report.
* Commission for the financial year 2021-22 as Executive Director paid during financial year 2022-23. The Board of Directors
at its meeting held on 8th May, 2023, has approved Commission of ` 250 Lakhs for financial year 2022-23, which will be
paid during financial year 2023-24.
B. Remuneration to Non-Executive Directors

The Non-Executive Independent Directors are paid commission within the ceiling of 1% of net profits of
the Company as specified in Section 197 of the Act. The commission payable to Non-Executive Independent
Directors is decided by the Board, on recommendation of the Nomination and Remuneration Committee, based
on a number of factors including number of Board and Committee meetings attended, individual contribution
thereat etc.
The Non-Executive Independent Directors are also paid sitting fees for attending the meetings of the Board or
Committees thereof within the limits prescribed under the Act.
Apart from the commission and sitting fees paid by the Company, the Non-Executive Independent Directors,
in their individual capacity, did not have any pecuniary relationship or transaction with the Company during the
financial year 2022-23.
204
The details of payments made to Non-Executive Independent Directors during the year ended 31st March, 2023
are as under:
(` in Lakhs)
Name of the Sitting Fees Commission$ Total

Director Board AC %
NRC* CSRC #
ID^ SRC@
RMC &
Meeting Meeting Meeting Meeting Meeting Meeting Meeting

Mr. P. P. Shah 1.75 1.00 1.00 – 0.50 0.25 0.50 40.00 45.00
Mr. N. N. Tata** 0.75 0.50 0.50 – 0.25 – – 35.00 37.00
Ms. Sonia Singh 1.75 1.00 1.00 0.25 0.50 0.25 0.50 35.00 40.25
Mr. Bhakar Bhat ## 1.00 0.50 0.50 0.25 0.25 – – – 2.50

%
AC: Audit Committee
* NRC: Nomination and Remuneration Committee.
# CSRC: Corporate Social Responsibility Committee.
^ ID: Independent Director
@ SRC: Stakeholders Relationship Committee.
& RMC: Risk management Committee
$ Commission paid during the year 2022-23 was for the year ended 31st March, 2022.
** Resigned as an Independent Director of the Company with effect from 10th August, 2022.
## Appointed as an Independent Director of the Company with effect from 10th August, 2022.
C. Remuneration to Key Managerial Personnel and other employees

The objective of the policy is to have a compensation framework that will reward and retain talent.
As per the policy, the remuneration is such as to ensure that the correlation of remuneration to performance is
clear and meets appropriate performance benchmarks.
Remuneration to Key Managerial Personnel, Senior Management and other employees involves a balance
between fixed and variable pay, reflecting short and long term performance objectives of the employees in line with
the working of the Company and its goals. The above takes into consideration industry performance, customer
performance and overall economic environment.
For Directors, the Performance Pay is linked to achievement of Business Plan (achievement of short-term and
long-term business objective).
For Heads of Department, the Performance Pay is linked to achievement of functional plan which is derived from
the business plan. The functional plan includes both, short-term and long-term objectives.
For other management personnel, the Performance Pay is linked to achievement of individual set objectives and
part of this will also be linked to overall Company performance.
8. Independent Directors:
The Independent Directors of the Company have been appointed in accordance with the provisions of Section 149 of
the Act and applicable provisions of the SEBI Listing Regulations.
Pursuant to Schedule IV to the Act, every Independent Director has been issued a letter of appointment containing
the terms and conditions of his/her appointment. The terms and conditions of appointment have been posted on the
website of the Company at https://www.nerolac.com/financial/policies.html.
Independent director’s databank registration

Pursuant to a notification dated 22nd October, 2019 issued by the Ministry of Corporate Affairs, all Independent Directors
are registered with the Independent Director’s Databank.
205
Separate meeting of Independent Directors

In accordance with the provisions of Schedule IV of the Act and Regulation 25 of the SEBI Listing Regulations,
2 (two) separate meetings of the Independent Directors were held during the year i.e. on 10th May, 2022 and
1st November, 2022, wherein the Internal Auditors and the Statutory Auditors of the Company were also invited.
Both these meetings of the Independent Directors were without the attendance of Non-Independent Directors and
members of management.
Name of the Director Number of meetings of the Independent Directors attended

Mr. P. P. Shah 2
Mr. N. N. Tata* 1
Ms. Sonia Singh 2
Mr. Bhaskar Bhat #
1
* Resigned as a Independent Director of the Company with effect from 10th August, 2022.
# Appointed as an Independent Director of the Company with effect from 10th August, 2022.
After 31st March, 2023, a meeting of the Independent Directors has been held on 8th May, 2023 and the Internal
Auditors and the Statutory Auditors of the Company were also invited for discussion at this meeting.
Mr. P. P. Shah, Chairman of the Company, was the Chairman of all the meetings of Independent Directors. The
Independent Directors discussed matters pertaining to the Company’s affairs and functioning of the Board and
presented their views to the Managing Director for appropriate action.
The Independent Directors at their meetings also considered:
a. Review of the performance of the Non-Independent Directors and the Board as a whole;
b. Review of the performance of the Chairman of the Company, taking into account the views of the Executive
Director and Non-Executive Directors;
c. Assessing the quality, quantity and timeliness of flow of information between the Company management and the
Board that is necessary for the Board to effectively and reasonably perform their duties.
9. General Body Meetings:

(a) Location and time of the last three year's Annual General Meetings (“AGM”) of the Company:
Particulars of Date and Time Venue

the AGM
102nd AGM 23rd June, 2022 at 11 a.m. By Video Conferencing / Other Audio Visual Means
101st AGM 25th June, 2021 at 11 a.m. By Video Conferencing / Other Audio Visual Means
100th AGM 22nd June, 2020 at 12 noon By Video Conferencing / Other Audio Visual Means
(b) 2 (two) special resolutions were passed in the 100th AGM of the Company, for re-appointment of Mr. P. P. Shah
and Mr. N. N. Tata as Independent Directors. No Special Resolution was passed at the 101st AGM of the
Company. 1 (one) special resolution was passed in the 102nd AGM of the Company, for re-appointment of
Ms. Sonia Singh as Independent Director.
(c)
During the year, a Postal Ballot was conducted seeking approval of the Members of the Company
(special resolutions) for appointment of Mr. Bhaskar Bhat as an Independent Director of the Company for a term
of 5 (five) years with effect from 10th August, 2022 and for approval of Kansai Nerolac Paints Limited – Restricted
Stock Unit Plan 2022.
(d) r. J. H. Ranade, Membership No. F4317 & Certificate of Practice No. 2520 Partner of JHR & Associates,
M
Company Secretaries in practice, was the Scrutinizer to scrutinize the postal ballot process in fair and
transparent manner.
206
(e)
The postal ballot is conducted in accordance with the provisions contained in Section 110 and other
applicable provisions, if any, of the Act read with Rule 22 of the Companies (Management and Administration)
Rules, 2014. In line with the relevant MCA Circulars, the Postal Ballot Notice dated 14th September, 2022 was sent
by e-mail to all the Shareholders whose e-mail IDs are registered with the Company/ Depository Participant(s) for
communication purposes to the Shareholders and to all other persons so entitled. The Company provided facility
of remote e-voting to its Members in respect of the business transacted by Postal Ballot through electronic means.
For this purpose, the Company has entered into an agreement with National Securities Depository Limited for
facilitating voting through electronic means, as the authorized agency.
The remote e-voting period began on Monday, 26th September, 2022 at 9:00 a.m. and ended on
Tuesday, 25th October, 2022 at 5:00 p.m. The Members, whose names appeared in the Register of Members/
Beneficial Owners as on the cut-off date i.e. Friday, 16th September, 2022, could cast their vote electronically.
The voting right of Shareholders was in proportion to their share in the paid-up Equity Share Capital of the
Company as on the cut-off date, being Friday, 16th September, 2022. In terms of the Act, the Resolution is
deemed to have been passed by the requisite majority through Postal Ballot on the last date of remote e-voting
i.e. Tuesday, 25th October, 2022. The Scrutinizer after scrutiny of the votes cast, submitted their report on the
result of the Postal Ballot to the Chairman. The result of the Postal Ballot along with the Scrutinizer’s Report was
announced by the Chairman of the Company on Thursday, 27th October, 2022.
Based on the Scrutinizer’s Report, the details of voting pattern in respect of the resolution passed are as under:
Item Resolution Votes cast in Votes cast % of Votes % of Status

No. favour of the against the cast in Votes cast of the
Resolution Resolution favour# against# Resolution
Special business:
1. Appointment of Mr. Bhaskar Bhat as an 48,13,02,570 11,14,719 99.7689 0.2311 Passed with
Independent Director (holding Director requisite
Identification Number 00148778) to majority
hold office for a term of 5 (five) years
commencing from 10th August, 2022 and
ending on 9th August, 2027 (both days
inclusive).
2. Approval of Kansai Nerolac Paints Limited 44,17,72,222 3,39,96,186 92.8545 7.1455 Passed with
– Restricted Stock Unit Plan 2022. requisite
majority
# Rounded off to 4 decimals.
(f) The Board of Directors, at its meeting held on 8th May, 2023, has approved to conduct a Postal Ballot for
seeking approval of the Members for increase in Authorised Share Capital from ` 66.50 Crores to ` 85 Crores
(ordinary resolution), consequent alterations to the Memorandum of Association (ordinary resolution) and
Articles of Association (special resolution) and issue of bonus shares in the ratio of 1:2 (special resolution).
10. Means of Communication

(a)
Quarterly Results: The quarterly results are published in accordance with the applicable provisions of the
SEBI Listing Regulations.
(b) Newspaper in which results are normally published: Generally, the results are published in Business Standard
and Sakal. However, the results could also get published in any other reputed newspaper such as the Financial
Express / Loksatta or the Economic Times / Maharashtra Times.
(c) Any website, where displayed: https://www.nerolac.com.
(d) hether it also displays official news releases; and presentation made to institutional investors
W
or to the analysts: Relevant information is displayed on the website of the Company at
https://www.nerolac.com/investors/details-of-business.html.
207
11. General Shareholder Information

(a) Date, Time and Venue of the AGM:
The 103rd AGM of the Company will be held on Monday, 26th June, 2023 at 11 a.m. through Video Conferencing/
Other Audio Visual Means.
(b) Financial Year : April - March

Financial reporting for the quarter ending 30th June, 2023 : July - August, 2023
Financial reporting for the quarter ending 30th September, 2023 : October - November, 2023
Financial reporting for the quarter ending 31st December, 2023 : January - February, 2024
Financial reporting for the year ending 31st March, 2024 : April - May, 2024
Annual General Meeting for the year ending 31st March, 2024 : End June, 2024
(c) Dates of Book Closure:

Friday, 26th May, 2023 to Tuesday, 30th May, 2023 (both days inclusive) for the purpose of Annual General
Meeting and dividend.
Dividend Payment Date:

Dividend, if declared, will be payable on or after Friday, 30th June, 2023 to those members whose names are
registered as such in the Register of Members of the Company as on Thursday, 25th May, 2023 and to the
Beneficiary holders as per the beneficiary list as on Thursday, 25th May, 2023 provided by National Securities
Depository Limited and Central Depository Services (India) Limited.
(d) Listing of Stock Exchanges:

The Company’s Equity Shares are listed on the BSE Limited and the National Stock Exchange of India Limited.
BSE Limited (“BSE”) National Stock Exchange of India Limited (“NSE”)

Phiroze Jeejeeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex
Dalal Street, Mumbai - 400 001 Bandra (E), Mumbai - 400 051
The annual listing fees of the BSE and the NSE for the financial year 2023-24 have been paid.
(e) Stock Code:
Stock Exchange Code

BSE 500165
NSE KANSAINER
ISIN : INE531A01024
208
(f) Market Price Data - High, Low during each month (g) Performance of the Company’s Stock in comparison
in last financial year: to broad-based indices such as BSE Sensex,
High / Low of market price of the Company’s Equity CRISIL Index etc.:
Shares traded on the Stock Exchanges during the Details of the performance of the Company’s
year ended 31st March, 2023 is furnished below: stock vis-à-vis S&P BSE Sensex, was as below:
Month BSE NSE Month Company’s BSE Sensex

Closing Price
High Low High Low on BSE (`)
(`) (`) (`) (`) April 2022 469.70 57,060.87
April 2022 479.95 452.50 480.00 451.00 May 2022 401.10 55,566.41
May 2022 470.95 390.00 470.85 390.00 June 2022 369.80 53,018.94
June 2022 421.00 358.05 418.30 358.15 July 2022 400.65 57,570.25
July 2022 415.00 363.20 415.00 363.15 August 2022 506.10 59,537.07
August 2022 535.90 402.70 535.90 402.10 September 2022 490.95 57,426.92
September 2022 522.85 465.25 523.10 465.85 October 2022 486.00 60,746.59
October 2022 506.85 466.00 501.00 468.00 November 2022 449.75 63,099.65
November 2022 489.00 428.90 488.50 426.70 December 2022 439.15 60,840.74
December 2022 452.15 411.30 452.00 411.30 January 2023 423.35 59,549.90
January 2023 442.70 401.00 448.00 401.00 February 2023 403.25 58,962.12
February 2023 426.55 400.35 427.40 400.50 March 2023 386.00 58,991.52
March 2023 422.10 377.60 422.70 377.90
600 70000
550
65000
500
60000
KNPL Share Price (`)
450
BSE Sensex
400 55000
350
50000
300
45000
250
200 40000
Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23
(h) The securities of the Company have never been suspended from trading.
(i) Registrar and Share Transfer Agents:

TSR Consultants Private Ltd.
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West), Mumbai – 400 083.
Tel. No.: +91 810 811 8484, Fax No.: +91 22 66568494
E-mail: [email protected]
Website: www.tcplindia.co.in
209
(j) Share Transfer System:

Members may please note that SEBI, vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated
25th January, 2022, has mandated Listed Companies to issue securities in demat form only while processing
service requests viz. issue of duplicate securities certificate; claim from Unclaimed Suspense Account; renewal/
exchange of securities certificate; endorsement; sub-division/splitting of securities certificate; consolidation of
securities certificates/folios; transmission and transposition. Accordingly, Shareholders are requested to make
service requests by submitting a duly filled and signed Form ISR–4, the format of which is available on the website
of the Company’s Registrar and Share Transfer Agents at www.tcplindia.co.in. It may be noted that any service
request can be processed only after the folio is KYC compliant. SEBI, vide its notification dated 24th January,
2022, has mandated that all requests for transfer of securities including transmission and transposition requests
shall be processed only in dematerialised form. In view of the same and to eliminate all risks associated with
physical shares and avail various benefits of dematerialisation, Members are advised to dematerialise the shares
held by them in physical form. Members can contact the Company’s Registrar and Share Transfer Agents, for
assistance in this regard.
(k) Distribution of Shareholding as on 31st March, 2023:
No. of Equity Shares held No. of Folios % to number No. of Shares % to number
of Folios of Shares
Upto 500 79,809 93.12 46,35,244 0.86
501 to 1000 2,050 2.39 16,37,230 0.30
1001 to 2000 1,199 1.40 18,47,090 0.34
2001 to 3000 485 0.57 12,40,420 0.23
3001 to 4000 382 0.45 13,46,227 0.25
4001 to 5000 245 0.29 11,52,486 0.21
5001 to 10000 603 0.70 45,77,691 0.85
10001 to 20000 432 0.50 62,00,477 1.15
20001 and above 504 0.59 51,62,82,855 95.80
Grand Total 85,709 100.00 53,89,19,720 100.00
Geographical Distribution of Shareholders as on 31st March, 2023
Location No. of Folios % to number No. of Shares % to number

of Folios of Shares
OUTSIDE INDIA
Promoter - Kansai Paint Co., Ltd. 1 0.00 40,41,35,898 74.99
FII, NRI, OCB, FPI - Corporation 2,117 2.47 2,24,49,875 4.17
IN INDIA
Ahmedabad 2,407 2.81 15,44,115 0.29
Bangalore 3,628 4.23 17,54,434 0.33
Chennai 2,381 2.78 7,20,950 0.13
Hyderabad 2,009 2.34 7,58,990 0.14
Jaipur 987 1.15 5,58,949 0.1
Kolkata 1,953 2.28 28,54,194 0.53
Mumbai 14,494 16.91 8,90,08,386 16.52
New Delhi 4,821 5.62 48,09,841 0.89
Pune 4,185 4.88 17,25,299 0.32
Surat 1,137 1.33 4,58,768 0.09
Vadodara 906 1.06 3,66,158 0.07
Others 44,683 52.13 77,73,863 1.44
TOTAL 85,709 100.00 53,89,19,720 100.00
210
Categories of Shareholders as on 31st March, 2023

Sr. Category No. of Percentage to
No. Shares held Shareholding
A. Promoters’ Holding
1. Promoters
Indian Promoters Nil Nil
Foreign Promoters (Kansai Paint Co., Ltd., Japan) 40,41,35,898 74.99
2. Persons acting in concert Nil Nil
Sub-Total (A) 40,41,35,898 74.99
B. Non-Promoters’ Holding
3. Institutional Investors
a. Mutual Funds and UTI 2,72,56,906 5.06
b. Banks, Financial Institutions, Insurance Companies, 4,17,99,440 7.76
Alternate Investment Funds (Central / State Govt. Institutions / Non-
Government Institutions)
c. Others (Foreign Portfolio – Corp.) 2,09,30,421 3.88
d. Foreign Institutional Investors (FIIs) 0 0.00
Sub-Total (i) 8,99,86,767 16.70
4. Others
Private Corporate Bodies 27,53,286 0.51
Indian Public 3,98,32,584 7.39
NBFCs 1,100 0.00
NRIs / OCBs 15,19,454 0.28
Any Other (Trusts) 46,730 0.01
Unclaimed Suspense Account 88,010 0.02
IEPF 5,55,891 0.10
Sub-Total (ii) 4,47,97,055 8.31
Sub-Total (B) = (i) + (ii) 13,47,83,822 25.01
Grand Total (A) + (B) 53,89,19,720 100.00
(l) Dematerialisation of Shares and Liquidity:

As at 31st March, 2023, 99.62% of the paid-up share capital of the Company had been dematerialised. Particulars
of trading on the Company’s shares for the financial year 2022-23:
Stock Exchange No. of Trades No. of Shares
BSE 2,44,154 48,81,507
NSE 18,97,526 6,46,02,289
(m) Outstanding GDRs / ADRs / Warrants or any Convertible Instruments:

The Company has not issued any GDRs / ADRs / Warrants or any Convertible Instruments.
(n) Commodity price risk or foreign exchange risk and hedging activities:
With reference to Circular No. SEBI/HO/CFD/CMD1/CIR/P/2018/0000000141 dated 15th November, 2018 issued
by SEBI, on disclosures regarding commodity risks by listed entities, the Company is actively working on mitigating
commodity risks and foreign exchange risks.
Commodity Risk
ommodity risk is an integral spectrum of the risk framework of the Company and impacts its financial performance
C
upon fluctuations in the prices of the commodities that are out of control of the Company and are primarily
driven by external market forces, government policies and international market changes. The Company does not
undertake any commodity hedging activities on any exchange but procures raw materials which are derivatives of
various commodities. The Company has a robust framework and governance mechanism in place that ensures
Company’s interests are protected despite volatility in prices and availability.
211
Foreign Exchange Risk

The Company manages its foreign exchange risks by hedging its net exposure with the use of appropriate
hedging instruments based on its foreign exchange risk management policy. The Company does not enter into
any derivative instruments for trading or speculative purposes. The details of foreign exchange exposures are
disclosed in Notes to the financial statements.
(o) Plant Locations:

The Company’s plants, which are operative, are located at:
1. Lote Parshuram, Ratnagiri, Maharashtra
2. Jainpur, Kanpur Dehat, Uttar Pradesh
3. Bawal, Haryana
4. Hosur, Tamil Nadu
5. Sayakha, Gujarat
6. Goindwal Sahib, Punjab
7. Kakoda, Goa
8. Sarigam, Gujarat
(p) Address for correspondence:
TSR Consultants Private Ltd.
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West), Mumbai - 400 083.
Tel. No.: +91 810 811 8484, Fax No.: +91 22 66568494
E-mail ID: [email protected]
Shareholders can also contact the Secretarial Department at the Corporate Office of the Company at:
28th Floor, A-wing, Marathon Futurex,
N.M. Joshi Marg, Lower Parel,
Mumbai - 400 013, Maharashtra
Tel. No.: +91-22-40602500, +91-22-40602501
E‑mail ID for Investor Grievances: The Company has created an e-mail ID for redressal of Investor Complaints
named [email protected].
(q) List of all credit ratings obtained by the Company:

Sr. Particulars Amount Rating Rating
No. (` in Crores) Agency
1 Cash Credit* 158 CRISIL Long Term Rating – CRISIL AAA / Stable
2 Commercial Paper 30 CRISIL CRISIL A1+
3 Non-Convertible Debentures 10 CRISIL CRISIL AAA / Stable
* Interchangeable with buyer's credit, working capital loan, letter of credit, and bank guarantee.
12. Disclosures
(a) Related Party Transactions:
ll transactions entered into with the Related Parties as defined under the Act and Regulation 23 of SEBI Listing
A
Regulations, during the financial year were in the ordinary course of business and on arm’s length basis and do
not attract provisions of Section 188 of the Act. There were no materially significant transactions with the related
parties during the financial year that may have potential conflict with the interest of the Company at large.
Related party transactions have been disclosed in Note no. 38 to the Standalone Financial Statements.
The Company has in place a Policy on dealing with Related Party Transactions and on Materiality of Related Party
Transactions which is available on the website of the Company at https://www.nerolac.com/financial/policies.html.
In terms of the same, a statement in summary form of transactions with related parties in the ordinary course of
business and on arm’s length basis is periodically placed before the Audit Committee for its review. Omnibus
approval was obtained for transactions which were repetitive in nature. Transactions entered into pursuant to
omnibus approval were placed before the Audit Committee for its review during the year.
212
(b) Non-compliance by the Company, penalties, and strictures imposed on the Company by Stock Exchanges or SEBI
or any statutory authority on any matter related to capital markets, during the last three years: Nil.
(c) Vigil mechanism and Whistle Blower Policy:
The Company, pursuant to Section 177(9) of the Act and Regulation 22 of the SEBI Listing Regulations,
has a Whistle Blower Policy in place, which is available on the website of the Company at
https://www.nerolac.com/financial/policies.html. The Company's Policy provides effective means to encourage
the employees to communicate any concerns about unethical behaviour, actual or suspected fraud, or violation of
Company's Code of Conduct or Ethics Policy. The employees may report such concerns to their seniors, Managing
Director and/ or Chairman of the Audit Committee, without fear of punishment, reprisal or unfair treatment. There
are safeguards to ensure that all employee concerns receive due consideration.
The Code of Conduct for the Board of Directors and Senior Management states that Directors and
Senior Managers of the Company shall endeavour to promote ethical behaviour and to provide an opportunity to
employees to report violation of laws, rules, regulations or codes of conduct and policy directives adopted by the
Company to the appropriate personnel without fear of retaliation of any kind for reports made by the employees in
good faith.
No personnel has been denied access to the Audit Committee.
(d)
Details of compliance with mandatory requirements and adoption of the non-mandatory requirements
along with the details of any non-compliance of any requirement of the corporate governance report, pertaining to
Point Nos. (2) to (10) of Schedule V(C) of the SEBI Listing Regulations:
The Company has complied with all the mandatory requirements of the SEBI Listing Regulations relating to
There is no non-compliance of any requirement of the Corporate Governance Report and necessary details as
required vide Schedule V(C) of the SEBI Listing Regulations have been provided herein. Further, necessary
disclosures with respect to the compliance with Corporate Governance requirements specified in Regulation 17 to 27
of the SEBI Listing Regulations, have been made in this Report on Corporate Governance. Necessary details
as required in terms of clauses (b) to (i) of Regulation 46(2) of the SEBI Listing Regulations are available on the
website of the Company at www.nerolac.com.
The discretionary requirements as stipulated in Part E of Schedule II of the SEBI Listing Regulations, have been
adopted to the extent and in the manner as stated under the appropriate headings in this Report on Corporate
Governance.
(e) Material Subsidiaries:
he Company does not have a material subsidiary as defined under Regulation 16(1)(c) of the SEBI
T
Listing Regulations. The Policy for determining material subsidiaries is available on the website of the Company
at https://www.nerolac.com/financial/policies.html.
(f) Disclosure of commodity price risks and commodity hedging activities:
This has been discussed under Point No. 11(n) of this Report on Corporate Governance.
(g) etails of utilization of funds raised through Preferential Allotment or Qualified Institutions Placement as specified
D
under Regulation 32(7A) of the SEBI Listing Regulations:
here was no Preferential Allotment or Qualified Institutions Placement as specified under Regulation 32(7A) of
T
the SEBI Listing Regulations.
(h) A Certificate has been received from JHR & Associates, Practicing Company Secretaries that none of the
Directors on the Board of Directors of the Company have been debarred or disqualified from being appointed or
continuing as directors of companies by the Securities and Exchange Board of India / Ministry of Corporate Affairs
or any such statutory authority.
Further, in terms of Regulation 24A of the SEBI Listing Regulations, the Company has obtained the Secretarial
Compliance Report for the year ended 31st March, 2023, confirming compliance of the applicable SEBI Regulations
and circulars / guidelines issued thereunder.
(i) Disclosure of instances along with the reasons, where the Board of Directors had not accepted any recommendation
of any committee of the Board which is mandatorily required, in the financial year 2022-23:
There was no instance during the financial year 2022-23, where the Board of Directors did not accept the
recommendation of any committee of the Board which it was mandatorily required to accept.
213
(j) Total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to the Statutory
Auditor and all entities in the network firm/network entity of which the Statutory Auditor is a part:
Total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to S R B C & CO
LLP, Chartered Accountants (Statutory Auditor of the Company) and other firms in the network entity of which the
Statutory Auditor is a part, as included in the consolidated financial statements of the Company for the year ended
31st March, 2023, is as follows:
(` in Crores)
Fees for audit and related services paid to S. R. Batliboi & Affiliates firms and to entities of the network of
which the Statutory Auditor is a part (excluding out of pocket expenses) 0.93
Other fees paid to S. R. Batliboi & Affiliates firms and to entities of the network of which the Statutory
Auditor is a part –
Total Fees 0.93
(k) Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013:
a. Number of complaints filed during the financial year 2022-23: Nil
b. Number of complaints disposed of during the financial year 2022-23: Nil
c. Number of complaints pending as on end of the financial year 2022-23: Nil
(l) Disclosure by listed entity and its subsidiaries of loans and advances in the nature of loans to firms/companies in
which directors are interested by name and amount:
here are no loans and advances in the nature of loans to firms/companies in which directors are interested as on
T
31st March, 2023.
13. CEO/CFO Certification

certificate from the CEO and CFO as specified in Part B of Schedule II in terms of Regulation 17(8) of the
A
SEBI Listing Regulations, was placed before the meeting of the Board of Directors held on 8th May, 2023, to
approve the Audited Financial Results and Audited Financial Statements of the Company for the financial year ended
31st March, 2023.
14. Compliance certificate obtained from S R B C & CO LLP, Chartered Accountants, Statutory Auditors of the Company,
regarding compliance of conditions of corporate governance, is annexed to this Report.
15. Unclaimed Dividend

Pursuant to Section 205A of the Companies Act, 1956, all unclaimed dividend upto 56th Dividend for the year ended
31st March, 1994 have been transferred to the General Revenue Account of the Central Government. Also, pursuant
to Section 205A read with Section 205C of the Companies Act, 1956 as replaced by Sections 124 and 125 of the
Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and
Refund) Rules, 2016 (“IEPF Rules”), as amended, all unclaimed dividends for the year ended 31st March, 1995 to
31st March, 2015 have been transferred to the Investor Education and Protection Fund (“IEPF”).
Shareholders who have not encashed their dividend warrants for the aforesaid period are requested to claim the
amount from the IEPF Authority, by submitting an online application in Form IEPF-5 available on www.iepf.gov.in.
Shareholders are requested to encash their dividend warrants immediately on receipt as dividends remaining unclaimed
for seven years are to be transferred to the IEPF. Further, pursuant to Section 124 of the Act read with IEPF Rules,
as amended, the shares, in respect of which dividend is not claimed for seven consecutive years, are required to be
transferred by the Company in the name of IEPF. Any claimant of such transferred shares would be entitled to claim the
transfer of shares from IEPF in accordance with the procedure as laid down in the aforesaid IEPF Rules.
Shareholders are requested to visit the website of the Company at https://www.nerolac.com/financial/shareholders.html
for details of amounts lying in the unclaimed dividend accounts of the Company, unclaimed dividend for 2014-15
transferred to the IEPF, the shares transferred to IEPF and the shares due to be transferred to IEPF.
214
16. Disclosure with respect to demat suspense account / unclaimed suspense account
Particulars No. of No. of Equity
Shareholders Shares
a) Aggregate number of shareholders and the outstanding shares lying in the 27 98,110
Unclaimed Suspense Account as on 1st April, 2022 Equity Shares of
` 1 each
b) Number of shareholders who approached the Company for transfer of shares from Nil Nil
the Unclaimed Suspense Account during the year
c) Number of shareholders to whom the shares were transferred from the Unclaimed Nil Nil
Suspense Account during the year
d) Number of shareholders whose unclaimed dividends were transferred to the 3 10,100
IEPF account in terms of Ministry of Corporate Affairs General Circular No. 12/2017 Equity Shares
dated 16th October, 2017 of ` 1 each
e) Aggregate number of shareholders and the outstanding shares lying in the 24 88,010
Unclaimed Suspense Account as on 31st March, 2023 Equity Shares of
` 1 each
f) It is hereby confirmed that the voting rights on these shares shall remain frozen till the rightful owner of such shares claims
the shares.
P. P. SHAH
Chairman
DECLARATION
As required under Schedule V(D) of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, it is hereby declared that the members of the Board of Directors and the Senior
Management Personnel have confirmed compliance with the Code of Conduct for the Board of Directors and the Senior
Management for the year ended 31st March, 2023.
For Kansai Nerolac Paints Limited
Anuj Jain
Managing Director
215
Independent Auditor’s Report on compliance with the conditions of Corporate Governance as

per provisions of Chapter IV of Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as amended
The Members of Kansai Nerolac Paints Limited
1. The Corporate Governance Report prepared by Kansai Nerolac Paints Limited (hereinafter the “Company”), contains
details as specified in regulations 17 to 27, clauses (b) to (i) and (t) of sub-regulation (2) of regulation 46 and para C, D,
and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended (“the Listing Regulations”) (‘Applicable criteria’) for the year ended March 31, 2023 as
required by the Company for annual submission to the Stock exchange.
Management’s Responsibility
2. The preparation of the Corporate Governance Report is the responsibility of the Management of the Company including
the preparation and maintenance of all relevant supporting records and documents. This responsibility also includes
the design, implementation and maintenance of internal control relevant to the preparation and presentation of the
Corporate Governance Report.
3. The Management along with the Board of Directors are also responsible for ensuring that the Company complies with
the conditions of Corporate Governance as stipulated in the Listing Regulations, issued by the Securities and Exchange
Board of India.
Auditor’s Responsibility
4. Pursuant to the requirements of the Listing Regulations, our responsibility is to provide a reasonable assurance in the
form of an opinion whether, the Company has complied with the conditions of Corporate Governance as specified in
the Listing Regulations.
5. We conducted our examination of the Corporate Governance Report in accordance with the Guidance Note on Reports
or Certificates for Special Purposes and the Guidance Note on Certification of Corporate Governance, both issued
by the Institute of Chartered Accountants of India (“ICAI”). The Guidance Note on Reports or Certificates for Special
Purposes requires that we comply with the ethical requirements of the Code of Ethics issued by ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related
Services Engagements.
7. The procedures selected depend on the auditor’s judgement, including the assessment of the risks associated in
compliance of the Corporate Governance Report with the applicable criteria. Summary of procedures performed include:
i. Read and understood the information prepared by the Company and included in its Corporate Governance Report;
ii. Obtained and verified that the composition of the Board of Directors with respect to executive and non-executive
directors has been met throughout the reporting period;
iii. Obtained and read the Register of Directors as on March 31, 2023 and verified that atleast one independent
woman director was on the Board of Directors throughout the year;
iv. Obtained and read the minutes of the following committee meetings / other meetings held from April 01, 2022 to
March 31, 2023:
(a) Board of Directors;
(b) Audit Committee;
(c) Annual General Meeting (AGM);
(d) Nomination and Remuneration Committee;
(e) Stakeholders Relationship Committee;
(f) Risk Management Committee
v. Obtained necessary declarations from the directors of the Company.
vi. Obtained and read the policy adopted by the Company for related party transactions.
216
vii. Obtained the schedule of related party transactions during the year and balances at the year- end. Obtained and
read the minutes of the audit committee meeting where in such related party transactions have been pre-approved
prior by the audit committee.
viii. P
erformed necessary inquiries with the management and also obtained necessary specific representations from
management, including that the Company is in process of submitting the secretarial compliance report to stock
exchange and the due date for submission of the same is May 30, 2023.
8. The above-mentioned procedures include examining evidence supporting the particulars in the Corporate Governance
Report on a test basis. Further, our scope of work under this report did not involve us performing audit tests for the
purposes of expressing an opinion on the fairness or accuracy of any of the financial information or the financial
statements of the Company taken as a whole.
Opinion
9. Based on the procedures performed by us, as referred in paragraph 7 above, and according to the information and
explanations given to us, we are of the opinion that the Company has complied with the conditions of Corporate
Governance as specified in the Listing Regulations, as applicable for the year ended March 31, 2023, referred to in
paragraph 4 above.
Other matters and Restriction on Use

10. T
his report is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
11. This report is addressed to and provided to the members of the Company solely for the purpose of enabling it to
comply with its obligations under the Listing Regulations with reference to compliance with the relevant regulations of
Corporate Governance and should not be used by any other person or for any other purpose. Accordingly, we do not
accept or assume any liability or any duty of care or for any other purpose or to any other party to whom it is shown or
into whose hands it may come without our prior consent in writing. We have no responsibility to update this report for
events and circumstances occurring after the date of this report.
For S R B C & CO LLP

Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Anil Jobanputra

Partner
Membership Number: 110759
UDIN: 23110759BGVZSF5705
Place of Signature: Mumbai

Date: May 08, 2023
217
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
In terms of Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended, Business Responsibility and Sustainability Report (BRSR) in the Annual Report is mandatory
for the top 1000 listed companies, based on market capitalisation as on 31st March of every year. The BRSR is based on the
format suggested by SEBI.
SECTION A - GENERAL DISCLOSURES

I. Details of the listed entity
1 Corporate Identity Number (CIN) of the Listed Entity L24202MH1920PLC000825

2 Name of the Listed Entity Kansai Nerolac Paints Limited (KNPL)
3 Year of incorporation 1920
4 Registered office address erolac House, Ganpatrao Kadam Marg, Lower Parel,
N
Mumbai, Maharashtra, 400013
5 Corporate address 8th Floor, A-Wing, Marathon Futurex, N. M. Joshi
2
Marg, Lower Parel, Mumbai - 400 013, Maharashtra.
6 E-mail [email protected]
7 Telephone 022 - 4060 2500
8 Website www.nerolac.com
9 Financial year for which reporting is being done 1st April, 2022 to 31st March, 2023
10 Name of the Stock Exchange(s) where shares
1. BSE Limited (“BSE”)
are listed 2. National Stock Exchange of India Limited (“NSE”)
11 Paid-up Capital ₹ 53.89 Crores
12 ame and contact details (telephone, email address)
N Name - Mr. Jason. S. Gonsalves
of the person who may be contacted in case of any Designation - Director (Corporate
Planning, IT,
queries on the BRSR report and Materials)
Telephone No.: 022 - 4060 2500
E-mail: [email protected]
13 eporting boundary - Are the disclosures under this
R he disclosures under this report are made on a
T
report made on a standalone basis (i.e. only for the standalone basis for KNPL
entity) or on a consolidated basis (i.e. for the entity
and all the entities which form a part of its consolidated
financial statements, taken together).
II. Products/services
14 Details of business activities (accounting for 90% of the turnover):
Description of Main Activity Description of Business Activity % of Turnover of the entity

Manufacturing Manufacturing and supply of Paints, 100%
varnishes, enamels or lacquers
15 Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
Product/Service NIC Code % of total Turnover contributed

Manufacture of paints and 20221 100%
varnishes, enamels or lacquers
218
Business Responsibility and Sustainability Report 103rd Annual Report 2023
III. Operations
16 Number of locations where plants and/or operations/offices of the entity are situated:
Location Plants Offices

Σ
Total
National 9 111 120
[8 Manufacturing Plants [HO 103 Depots
1 R&D] 7 RDCs]
International: The Company has three subsidiaries abroad, namely KNP Japan Private Limited in Nepal, Kansai
Paints Lanka (Private) Limited in Sri Lanka and Kansai Nerolac Paints (Bangladesh) Limited in
Bangladesh. The Company has one domestic subsidiary, Nerofix Private Limited
17 (a) Markets served by the entity:
National ( No of States) 28 States

Internatinal ( No of Countries) Minor sale is done to Bangladesh Customers
17 (b) What is the contribution of exports as a percentage of the total turnover of the entity?
0.15%
17 (c) A brief on types of customers
Kansai Nerolac Paints Limited serves a diverse set of customers, including residential, commercial, industrial,
government and institutional, and retail customers. The Company offers a wide range of paint and products for
various applications, including decorative paints, industrial paints, wood finishes, adhesives and construction
chemicals. The industrial paints cater to the specific needs of automobiles,consumer durables, machinery,
equipment, and structures.
IV. Employees
Details as at the end of Financial Year:
18 (a) Employees and workers (including differently abled)
S Particulars Total (A)

No
Male Female
No (B) %(B/A) No (C) %(C/A)
1 Permanent (D) 2,649 2,546 96.1% 103 3.9%
2 Other than Permanent (E) 1,950 1,843 94.5% 107 5.5%

Employees
3 Total Employees (D+E) 4,599 4,389 95.4% 210 4.6%
1 Permanent (F) 730 725 99.3% 5 0.7%
2 Other than Permanent (G) 3,530 3,529 100% 1 0.0%

Workers
3 Total Workers (F+G) 4,260 4,254 99.9% 6 0.1%
219
18 (b) Differently abled Employees and workers:
S Particulars Total (A) Male Female

No
No (B) %(B/A) No (C) %(C/A)
1 Permanent (D) 1 1 100% 0 0%
2 Other than Permanent (E) 0 0 0% 0 0%
Differentially
3 Abled Total Differentially abled 1 1 100% 0 0%
Employees Employees (D+E)
1 Permanent (F) 0 0 0% 0 0%
2 Other than Permanent (G) 0 0 0% 0 0%
Differentially
3 Abled Total Differentially Abled 0 0 0% 0 0%
Workers Workers (F+G)
19 Participation/Inclusion/Representation of women
Total (A) No and Percentage of Females
No (B) %(B/A)
7 1 14.3%
Board of Directors
3 0 0%
Key Managerial Personnel#
#Includes MD, CFO and CS
20 Turnover rate for Permanent employees and workers
FY 22-23 FY 21-22 FY 20-21

Male Female Total Male Female Total Male Female Total
Permanent Employees 33.0% 26.2% 32.8% 26% 30% 27% 16.0% 10.2% 15.8%
Permanent Workers 1.1% 0.0% 1.1% 2% 0% 2% 2.4% 0.0% 2.4%
V. Holding, Subsidiary and Associate Companies (including joint ventures)

21(a) Names of holding / subsidiary / associate companies / joint ventures
S Name of the holding / Indicate whether % of shares held by Does the entity indicated
No subsidiary / associate holding/ Subsidiary/ listed entity at column A, participate in
companies /joint Associate/ Joint Venture the Business Responsibility
ventures (A) initiatives of the listed
entity? (Yes/No)
1 Kansai Paint Co., Ltd., Holding 74.99% No
Japan
2 KNP Japan Private Subsidiary 68.00% No
Limited
3 Kansai Paints Lanka Subsidiary 60.00% No
(Private) Limited
4 Kansai Nerolac Paints Subsidiary 55.00% No
(Bangladesh) Limited
(formerly known as RAK
Paints Limited)
5 Nerofix Private Limited Subsidiary 100% No
w.e.f 31st March 2023,
(60% upto
30th March, 2023)
220
VI. CSR Details
22 (i) Whether CSR is applicable as per section 135 of Companies Act, 2013 : Yes
(ii) Turnover (in `): 7,081.02 Crores
(iii) Net worth (in `): 4,607.38 Crores
VII. Transparency and Disclosures Compliances
23 Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on

Responsible Business Conduct:
Stakeholder group Grievance FY 22-23 FY 21-22

from whom complaint Redressal
is received Mechanism in No of No of No of No of
Place (Yes/No) complaints complaints complaints complaints
filed during the pending filed during the pending
year resolution at year resolution at
close of the close of the
year year
Yes 0 0 0 0
Communities
Yes 0 0 2 0
Shareholders
& Investors
Yes 0 0 0 0
Employees and
Workers
Yes 761 6 682 11

Customers
Yes 0 0 0 0
Value Chain Partners
Remarks -
Communities - All of our plants are located in village areas, the nearby communities highlight the grievances to the
Panchayats and Government authorities who in turn help us to address the grievances of the communities. The
highlighted issues are then taken up by our plant team as projets in that area.
Shareholders & Investors - The Company has created an e-mail ID for redressal of Investor Complaints i.e. investor@
nerolac.com.
Employees and Workers - The Company has in place Internal Complaints Committee and employees and workers can
approach HR Business Partners for the same
Customers - KNPL has established a dedicated consumer helpline, 1800-209-2092
Value Chain Partners - KNPL has Supplier Code of Conduct in place to address the grievances raised by value chain
partners
221
24 Overview of the entity’s material responsible business conduct issues - Please indicate material responsible
business conduct and sustainability issues pertaining to environmental and social matters that present a
risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate
the risk along-with its financial implications, as per the following format
S. Material issue Indicate Rationale for In case of risk, approach Financial

No. identified whether risk identifying the risk / to adapt or mitigate implications
or opportunity opportunity of the risk or
(R/O) opportunity
(Indicate
positive or
negative
implications)
1 Decarbonisation - Risk / Risk: Climate change Assessed organisation wide
Climate Change/ Opportunity poses a great threat as risks and its preparedness
Emission it can result in Physical resulting from climate
Management/ and transitional risks change. Greenhouse gases
Energy inlcuidng extreme inventorisation acivity done
Management weather events and lack and Committed to SBTi near
of resource availability term corporate targets. Negative
Opportunity: Investments Increased focus on the

in technologies to create reduction of Speciifc Power
green product portfolio and fuel consumption,
adoptnig green renewable
sourcs of energies
2 Resource Risk Due to the availability of Being water positive by
Use - Water fresh water and presence FY 2024-25. Emphasis on
Management of our manufcaturing rain water harvesting and
location at water stressed judicious usage of fresh
sites. water.
Negative
Also Water is one of
the major raw material
component for our
Finished goods (Water
base paint)
3 Quality of Life - Opportunity KNPL ensures -
Human Rights prevention of child
labour, forced labour or
any form of involuntary
Positive
labour, paid or unpaid in
sany of its subsidiaries,
amnufcaturing units,
depots
4 Diversity - Opportunity KNPL ensures -
Inclusivity indicrimination in
employment in any form
i.e., working age, gender, Positive
nationality, race, religion,
disabilities and sexual
orientation
5 Governance Opportunity KNPL ensures highest -
level of corporate
governance and Positive
compliances with the
statutory authorities
222
SECTION B - MANAGEMENT AND PROCESS DISCLOSURES
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards
adopting the NGRBC Principles and Core Elements
Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and Management Process
1(a) Whether your entity’s policy/ Yes Yes Yes Yes Yes Yes Yes Yes Yes
policies cover each principle and
its core elements of the NGRBCs
1(b) Has the policy been approved by Yes Yes Yes Yes Yes Yes Yes Yes Yes
the Board?
1(c) Web Link of the Policies, if available Refer to the Weblink of the policies table below
2 Whether the entity has translated Yes Yes Yes Yes Yes Yes Yes Yes Yes
the policy into procedures.
3 Do the enlisted policies extend to Yes Yes Yes No Yes Yes No No No
your value chain partners?
4 Name of the national and P2 - Quality Management Systems - ISO 9001:2015 ; Safety Management
international codes/certifications/ Systems - ISO 45001: 2018
labels/ standards (e.g. Forest
P6 - Environment Mangement Systems - ISO 14001:2015
Stewardship Council, Fairtrade,
Rainforest Alliance, Trustea)
standards (e.g. SA 8000, OHSAS,
ISO, BIS) adopted by your entity
and mapped to each principle.
5 Specific commitments, goals To be Disclosed in Respective Capitals
and targets set by the entity with
defined timelines, if any
6 Performance of the entity against To be Disclosed in Respective Capitals
the specific commitments, goals
and targets along-with reasons in
case the same are not met.
Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Governance, leadership and oversight
7 Statement by director We have set ambitious targets to reduce our carbon footprint and resource
responsible for the business consumption, while ensuring ethical sourcing and responsible supply chain
responsibility report, highlighting management. Our achievements include significant progress in water
ESG related challenges, targets replenishment and thus strengthening our committment of becoming water
and achievements (listed entity positive as well as improved transparency and engagement with stakeholders.
has flexibility regarding the We remain committed to building a more sustainable future and driving positive
placement of this disclosure) impact in the communities where we operate.
8 Details of the highest authority Name - Mr. Jason. S. Gonsalves
responsible for implementation Designation - Director (Corporate Planning, IT, and Materials)
and oversight of the Business
Responsibility policy (ies).
9 Does the entity have a specified ESG Committee (erstwhile EHS & Climate Change Committee)
Committee of the Board/ Director
responsible for decision making
on sustainability related issues?
(Yes / No). If yes, provide details.
223
10 Details of Review of NGRBCs by the Company:

Subject for Review Indicate whether review was Frequency (Annually/ Half yearly/
undertaken by Director / Committee Quarterly/ Any other –
of the Board/ Any other Committee please specify)
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Performance against above policies The policies of the Company are reviewed periodically / on a need basis by
and follow up action department heads / director /board committees / board members, wherever
applicable
Compliance with statutory Status of compliance with all applicable statutory requirements is reviewed by
requirements of relevance to the the Board on a regular basis.
principles, and, rectification of any
non-compliances
P1 P2 P3 P4 P5 P6 P7 P8 P9
11 Has the entity carried out independent No, The policies are reviewed on a periodic basis internally
assessment/ evaluation of the
working of its policies by an external
agency? (Yes/No). If yes, provide
name of the agency.
If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
12 The entity does not consider the NA
Principles material to its business
The entity is not at a stage where it is in NA
a position to formulate and implement
the policies on specified principles
The entity does not have the financial NA
or/human and technical resources
available for the task
It is planned to be done in the next NA
financial year
Any other reason (please specify) NA
Web Link of the policies

Principle Applicable Policies Policies link
a) Code of Conduct https://www.nerolac.com/sustainability.html
b) Code of Conduct for Directors and https://www.nerolac.com/financial/policies.html
Senior Management
c) C
ode of Practices and Procedures https://www.nerolac.com/financial/policies.html
Principle 1 for Fair Disclosure of Unpublished
Price Sensitive Information
d) Whistle blower Policy https://www.nerolac.com/financial/policies.html
e) Statutory Compliance Policy https://www.nerolac.com/financial/policies.html
f) Supplier Code of Conduct https://www.nerolac.com/financial/policies.html
a) Occupational health, Safety & https://www.nerolac.com/financial/policies.html
Principle 2 Environment Policy
b) Supplier Code of Conduct https://www.nerolac.com/financial/policies.html
a) Code of Conduct https://www.nerolac.com/sustainability.html
b) Code of conduct on Affirmative Action https://www.nerolac.com/financial/policies.html
c) Occupational health, Safety & https://www.nerolac.com/financial/policies.html
Environment Policy
Principle 3 d) Appropriate Social Conduct at Available in Employee Work line Portal
Workplace (POSH)
e) Medi-claim policy Available in Employee Work line Portal
f) Maternity Policy Available in Employee Work line Portal
g) Supplier Code of Conduct https://www.nerolac.com/financial/policies.html
224
Web Link of the policies

Principle Applicable Policies Policies link
Principle 4 a) CSR Policy https://www.nerolac.com/financial/policies.html
a) Code of conduct on Affirmative Action https://www.nerolac.com/financial/policies.html
b) Occupational health, Safety & https://www.nerolac.com/financial/policies.html
Environment Policy,
Principle 5 c) Policy on Health Related Ailments https://www.nerolac.com/sustainability.html
d) Appropriate Social Conduct at Available in Employee Work line Portal
Workplace (POSH)
e) Supplier Code of Conduct https://www.nerolac.com/financial/policies.html
a) Occupational health, Safety & https://www.nerolac.com/financial/policies.html
Principle 6 Environment Policy
b) Supplier Code of Conduct https://www.nerolac.com/financial/policies.html
a) Policy on Advocacy of Public & https://www.nerolac.com/financial/policies.html
Principle 7
Regulatory Policy
a) CSR Policy, https://www.nerolac.com/financial/policies.html
Principle 8
b) Code of conduct on Affirmative Action https://www.nerolac.com/financial/policies.html
a) Quality Policy https://www.nerolac.com/financial/policies.html
Principle 9 b) Cybersecurity Policy https://www.nerolac.com/financial/policies.html
c) Data Privacy Policy https://www.nerolac.com/financial/policies.html
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key
processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are
expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed
by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.
Principle 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable.
ESSENTIAL INDICATORS
1 Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
Segment FY 22-23
Total number of Topic/ Principles %age of persons in
training covered under the respective category
& Awareness training covered by the
programmes held and its impact awareness programmes
1 training session on ESG 9 Principles 100%
Board of Directors
Key Managerial Personnel

Employees Other than

BoD and KMPs
Workers
2 Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings
(by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the
financial year, in the following format
(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations
and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
225
Monetary - FY 22-23
National Guidelines on Name of the Amount Brief of the Has an appeal
Responsible Business Regulatory/ (in ₹) case been preferred
Conduct (NGRBC) Principle Enforcement (Yes/No)
agencies/ judicial
institutions
Penalty/Fine Nil Nil Nil Nil

Settlement Nil Nil Nil Nil
Compounding Fees Nil Nil Nil Nil
Non-Monetary - FY 22-23
Imprisonment Nil Nil Nil Nil
Punishment Nil Nil Nil Nil
3 Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where
monetary or non-monetary action has been appealed
Case Details Name of the regulatory/ enforcement agencies/ judicial institutions
Nil Nil
4 Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available,
provide a web-link to the policy.
Yes, KNPL has a Code of Conduct (CoC), extended to group companies and covers acts such as deception, bribery,
forgery, extortion, corruption. The CoC is applicable to any irregularity involving employees in their dealings with any
external entities. Fraud detection is a part of the Statutory Audit committee and the Risk Management committee. CoC
Policy, Section - Misconduct, Embezzlement of company’s funds and accepting illegal gratification
The Code of Conduct of KNPL mentions that no employee is allowed to accept any form of illegal gratification. If it is proved
that any employee has accepted any illegal gratification, that employee is liable for termination from employment. Thus
through this we cover the anti-corruption/anti-bribery policy at KNPL. (Weblink - https://www.nerolac.com/sustainability.html
Also, we have Code of Conduct for Directors and Senior Management of Kansai Nerolac Paints Limited which covers
BoD and senior management to observe highest ethical standards and act with integrity and honesty (Weblink- https://
www.nerolac.com/financial/policies.html)
5
Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery/ corruption:
There were no instances of any disciplinary action taken by any law enforcement agency for the charges of bribery/
corruption against Directors/KMPs/employees/ workers.
6 Details of Complaints with regards to conflicts of interest:
FY 22-23 FY 21-22
Number Remarks Number Remarks
Number of complaints received in relation to issues of Nil - Nil -
Conflict of Interest of the Directors
Number of complaints received in relation to issues of Nil - Nil -
Conflict of Interest of the KMPs
7 Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken
by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest
Not Applicable
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LEADERSHIP INDICATORS
1 Awareness programmes conducted for value chain partners on any of the Principles during the financial year:
FY 22-23
Total number of awareness Topics / principles %age of value chain partners covered (by value
programmes held covered under the training of business done with such partners) under the
awareness programmes
3 9 Principles -
We had invited more than 250 suppliers to participate in the training and awareness sessions which covered good
sustainable business practices and NGRBC principles.
2 Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board?
(Yes/No) If Yes, provide details of the same.
Yes, A Board-approved policy is in place providing the framework for the KNPL Corporate Governance philosophy,
which covers Directors, Senior Management and all employees. It addresses conflicts of interest along with corporate
opportunities; confidentiality; related-party transactions; insider trading; compliance with laws, rules & regulations;
protection and proper use of Company assets; fair dealing; and ethical business practices.
The Company has a Code of Conduct for Directors and senior management personnel. All the Directors and senior
management personnel have confirmed compliance with the said code.
(Weblink- https://www.nerolac.com/financial/policies.html)
Principle 2 Businesses should provide goods and services in a manner that is sustainable and safe
1 Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the
environmental and social impacts of product and processes to total R&D and capex investments made by the
entity, respectively.
At KNPL we are constantly making investments in adopting sustainable business practices, innovating products and
processes which cause positive environmental and social impacts.
Please refer Annexure 3 of the Directors Report for more details.
2 (a) Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes, KNPL has a green procurement guidelines which factors social, ethical and environmental aspects before
on-boarding of new suppliers and review of existing suppliers. The Company has a well laid out policy on Supplier
Code of Conduct. The policy focusses on environment protection, human rights, anti-corruption and fair-trade
practices. It is our endeavour that our suppliers adhere to the procurement guidelines laid out in the policy. The
Company is also focussed on identifying and implementing material processed through the renewable source
2 (b) If yes, what percentage of inputs were sourced sustainably?
More than 65% sourcing is done from manufacturers who have a formal sustainability programme.
3 Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end
of life, for:
Reclaimed Products Reclaimation Process

(a) Plastics (including packaging) As part Extended Producer's Responsibitily (EPR), KNPL has partnered with
2 PROs towards fulfillment of EPR Targets.
(b) E-waste Sent to Authorised Recyclers
(c) Hazardous waste and Sent to Authorised Recyclers
(d) Other waste. Sent to Authorised Scrap Dealers
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4 Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No).
If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan
submitted to Pollution Control Boards? If not, provide steps taken to address the same.
Yes, EPR is applicable to the Company. As one of the leading manufacturer of paints & coating industry, KNPL is
registered as a Brand Owner (BO) in accordance with PWM Rules, 2016 with CPCB.
The Company has initiated post-consumer waste management projects with producer responsibility organisations
(PROs) as a part of EPR to ensure safe disposal of pre-consumer and post-consumer packaging. For the FY 22-23,
the Company collected and recycled off, or safely disposed-off over 6771 MT rigid and 650 MT of flexible plastic waste
respectively, across 28 states. Also, in addition to FY 22-23 EPR targets we have also fulfilled our EPR Targets for the
year FY 20-21
1 Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing
industry) or for its services (for service industry)? If yes, provide details in the following format?
KNPL is under process of undertaking Life Cycle Perspective/Assesments & EPD for key products - Cradle to Grave/
Cradle to Gate
2 If there are any significant social or environmental concerns and/or risks arising from production or disposal of
your products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other
means, briefly describe the same along-with action taken to mitigate the same.
The details will be available and disclosed upon completion of Life Cycle Assessments of Key Products
3 Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
industry)
Indicate Input Material Recycled or re-used input material

to total material
FY 22-23 FY 21-22
TiO2 Dust (in MT) 16.3 17.6
Reclaimed Solvent (in MT) 344 370
Powder Fines (in MT) 169 251
Paint Sludge (in MT) 113 127
4 Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled,
and safely disposed, as per the following format:
FY 22-23 FY 21-22
Re-Used Recycled Safely Re-Used Recycled Safely
Disposed Disposed
Plastics (including packaging) -MT - 7,421 * - 2,499 *
E- Waste - - - - - -
Hazardous waste - - - - - -
Other waste, Paint Sludge (in MT) - 159 - - 115 -
Above recycled figures in line with obligation of that Financial Year

* Covered in Principle 6 waste
5 Reclaimed products and their packaging materials (as percentage of products sold) for each product category
Our paints and coatings products are consumables and hence are non-retrievable at their end-of-life
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Principle 3 Businesses should respect and promote the well-being of all employees, including those in their
value chains
1 (a) Details of measures for the well-being of employees:
FY 22-23
Category
% of Employees Covered by
Total Health Accident Maternity Paternity Day Care
(A) Insurance Insurance Benefits Benefits Facilities
No. (B) % (B/A) No. (C) % (C/A) No. (D) % (D/A) No. (E) % (E/A) No. (F) % (F/A)
Permanent Employees
Male 2,546 2,546 100% 2,546 100% NA NA 0 0% 0 0%
Female 103 103 100% 103 100% 103 100% NA NA 59 57%
Total 2,649 2,649 100% 2,649 100% 103 4% 0 0% 59 2.2%
Other than Permanent Employees
Male 1,843 1,843 100% 1,843 100% NA NA 0 0% 0 0%
Female 107 107 100% 107 100% 107 100% NA NA 0 0%
Total 1,950 1,950 100% 1,950 100% 107 5% 0 0% 0 0%
1 (b) Details of measures for the well-being of workers:
Category
% of Workers Covered by
Total Health Accident Maternity Paternity Day Care
(A) Insurance Insurance Benefits Benefits Facilities
No. (B) % (B/A) No. (C) % (C/A) No. (D) % (D/A) No. (E) % (E/A) No. (F) % (F/A)
Permanent Workers
Male 725 725 100% 725 100% NA NA 0 0% 0 0%
Female 5 5 100% 5 100% 5 100% NA NA 0 0%
Total 730 730 100% 730 100% 5 1% 0 0% 0 0%
Other than Permanent Workers
Male 3,529 3,529 100% 3,529 100% NA NA 0 0% 0 0%
Female 1 1 100% 1 100% 1 100% NA NA 0 0%
Total 3,530 3,530 100% 3,530 100% 1 0% 0 0% 0 0%
2 Details of retirement benefits, for Current FY and Previous Financial Year.
Benefits FY 22-23 FY 21-22
No. of No. of Deducted No. of No. of Deducted
employees workers and employees workers and
covered as covered as deposited covered as covered as deposited
a % of total a % of total with the a % of total a % of total with the
employees workers authority employees workers authority
(Y/N/N.A.) (Y/N/N.A.)
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100% Y 100% 100% Y
ESI 0.68% 2.64% Y 1.21% 3.37% Y
Others - Please specify - - - - - -
3 Accessibility of Workplaces:
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the

requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by
the entity in this regard.
Currently as an organisation, we are working on absorption and provisions for dfferently abled friendly and accessible
work place and premises as per the requirements of the Rights of Persons with Disabilities Act, 2016. All future workplace
will be provided with differently abled friendly accessibility.
As a step towards Disabiity Inclusion at KNPL, we successfully completed Accessibility audit of new HO Premises
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4 Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so,
provide a web-link to the policy.
KNPL does have an equal opportunity policy which is highlighted in our Code of Conduct on Affirmative Action policy. It
states that the Company provides equal opportunity in employment for all sections of society and ensures indiscrimination
in employment in any form ie working age, gender, nationality, race, religion, disabilities and sexual orientation.
Web-link for the policy - https://www.nerolac.com/financial/policies.html
5 Return to work and Retention rates of permanent employees and workers that took parental leave.
Gender Permanent Employees Permanent Workers
Return to work rate Retention Rate Return to work rate Retention Rate
Male - - - -
Female 100 - No Female Worker
availed Parental
Leave
Total 100 -
Employees who had availed Parental Leave have returned to work and are yet to complete 12 months from the date of return
6 Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.
Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers Yes Internal Complaints Committee (ICC) is available to address issues related to
Other than grievances /harassment (General/ Sexual). The complainant can approach any
Yes of the ICC members. All cases will be treated with utmost confidentiality and no
Permanent Workers
complainant will face any reprisal. Contact detaisl of ICC members are displayed
Permanent
Yes on Notice boards at key common areas of the organisation.
Employees
Whistleblower Policy - The Company has a Whistle Blower Policy to report genuine
concerns and grievances. The Policy provides adequate safeguards against
victimisation of persons who use the Whistle Blower mechanism. Details with
respect to implementation of the Whistle Blower Policy are separately disclosed in
Other than
the Annual Report, as a part of the Report on Corporate Governance. The same is
Permanent Yes
also available on the website of the Company at https://www.nerolac.com/financial/
Employees
policies.html.
In additon to this in our plants and offices there are various connect programs with
Emloyees by HR where employees can raise grievances.
7 Membership of employees and worker in association(s) or Unions recognised by the listed entity:
Category FY 22-23 FY 21-22

Total No. of employees % (B/A) Total No. of employees % (D/C)
employees / workers in employees / workers in
/ workers in respective / workers in respective
respective category, who respective category, who
category (A) are part of category (C) are part of
association(s) or association(s) or
Union (B) Union (D)
Total Permanent 2,649 0 0% 2,400 0 0%
Employees
- Male 2,546 0 0% 2,335 0 0%
- Female 103 0 0% 65 0 0%
Total Permanent 730 681 93% 705 690 98%
Workers
- Male 725 676 93% 700 685 98%
- Female 5 5 100% 5 5 100%
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8 Details of training given to employees and workers:

Category FY 22-23
Total (A)On Health & Safety Measures On Skill Upgradation
No. (B) % (B/A) No. (C) % (C/A)
Employees (Permanent)
Male 2,546 2,249 88% 1,819 71%
Female 103 93 90% 69 67%
Total 2,649 2,342 88% 1,888 71%
Workers (Permanent)
Male 725 725 100% 680 94%
Female 5 5 100% 5 100%
Total 730 730 100% 685 94%
For FY 21-22 kindly refer to previous years Annual Report for Trainings on Health & Safety and Skill Upgradation for all
employees
9 Details of performance and career development reviews of employees and worker:

Total (A) No. (B) % (B/A) Total (A) No. (B) % (B/A)
Employees Employees
Male 2,546 2,546 100% 2,335 2,335 100%
Female 103 103 100% 65 65 100%
Total 2,649 2,649 100% 2,400 2,400 100%
Workers - Collective performance evaluation of Workers is done
10 Health and safety management system:

10 (a) Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No).
If yes, the coverage such system?
Yes, we have an Ocupational health, safety and Environemnt (OHS&E) Policy and management system in line with
ISO 45001 standards and the system covers major facilities and workforce.
10 (b) hat are the processes used to identify work-related hazards and assess risks on a routine and non-
W
routine basis by the entity?
All operations and processes are reviewed to identify any possible safety risks and hazards through Process
Hazard Analysis (PHA) and Hazard and Operability (HAZOP) study. Hazards and Risks associated with each
activity are documented in Hazard Identification and Risk Assessment (HIRA) register.
10 (c) Whether you have processes for workers to report the work related hazards and to remove themselves
from such risks. (Y/N)
Yes, there are processes in place for workers to report any work related hazard observed at the workplace. In
case of any work related hazard observed, it is reported to the section head and documented in risk register.
SAP EHS module is used to notify the risk to the relevant function and to record and track safety statistics
Also, following initiatives were taken to neutralise such risks by -
• Periodic trainings and awareness sessions to build ‘Safety First’ mindset and dedicated focus on chemical safet
• Safety training KIOSK & Safety Laboratories across all locations and infrastructure upgrade to achieve highest
level of fire safety.
• Conscious programs which aid employee engagement: horizontal deployment of CAPA, Poka-Yoke, Kaisen
competitions, Six Sigma and Improvement projects.
10 (d) Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
(Yes/ No)
Dedicated OHCs (Occupational Health Centres) and ambulances for emergency situations in case of non-occupational
medical requirement. Also half yearly medical check-up of all workforce including contractual man-power.
231
11 Details of safety related incidents, in the following format:

Safety Incident/ Number Category FY 22-23 FY 21-22
Lost Time Injury Frequency Rate (LTIFR) Employees 0 0
(per one Million-person hours worked) Workers 0 0.099
Employees 0 0
Total recordable work-related injuries
Workers 0 1
Employees 0 0
No. of fatalities
Workers 0 0
High consequence work-related injury or ill-health Employees 0 0
(excluding fatalities) Workers 0 0
12 Describe the measures taken by the entity to ensure a safe and healthy work place.
7/8 manufacturing location being certified for Occupational Health and Safety Management System based on ISO 45001
and provision of Safety Committee and hazard identification and risk minimisation structure in place. We also involve
experts through safety audits to enhance safety measures, practices and emergency preparedness.
13 Number of Complaints on the following made by employees and workers:
FY 22-23 FY 21-22
Filed during Pending Remarks Filed during Pending Remarks
the year resolution the year resolution
at the end at the end
of the year of the year
Working Conditions 0 0 - 0 0 -
Health & Safety 0 0 - 0 0 -
14 Assessment for the year:

%of your plants and offices that were assessed
(by entity or statutory authorities or third parties)
Working Conditions 100%
Health & Safety 100%
7/8 Assessed under ISO 45001 Audit; Marpol assessed internally under EHS Audit
15 Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks / concerns arising from assessments of health & safety practices and working conditions.
Nil
1 Does the entity extend any life insurance or any compensatory package in the event of death of
(A) Employees (Y/N) - Yes
(B) Workers (Y/N). - Yes
Employees’ Group Insurance Policy (EGI): In the unfortunate event of the demise of a permanent employee
and workers, the family (Nominee) of the deceased employee/worker will be supported financially by the policy.
The EGI policy proposes an assured financial assistance as ‘sum assured’ which becomes applicable in the event
of an unfortunate death of the employee/worker whilst in service and is payable to the grantees of the benefit of
the Beneficiary of the employee/worker.
2 Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited
by the value chain partners.
The Company has a practice of informing the vendors about the statutory changes affecting their responsibilities in
respect of deduction/withholding of tax at source in respect of their transactions with the Company.
232
3 Provide the number of employees / workers having suffered high consequence work related injury / ill-health
/ fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in
suitable employment or whose family members have been placed in suitable employment:
Total no. No. of employees/ Total no. of No. of employees/
of affected workers that are affected workers that are
employees/ rehabilitated and employees/ rehabilitated and
workers placed in suitable workers placed in suitable
employment or whose employment or whose
family members have family members have
been placed in suitable been placed in suitable
employment employment
FY 22-23 FY 21-22
Employees 0 0 0 0
Workers 0 0 0 0
4 Does the entity provide transition assistance programs to facilitate continued employability and the management
of career endings resulting from retirement or termination of employment? (Yes/ No)

In the event of retirement, KNPL as an organisation uses its retainership program depending on case to case and the
suitability of the position.
5 Details on assessment of value chain partners on Working Conditions and Health & Safety
We have not carried out assessment on the mentioned parameters
6 Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
Not Applicable
Principle 4 Businesses should respect the interests of and be responsive to all its stakeholders
1 Describe the processes for identifying key stakeholder groups of the entity.
KNPL has put in place systems and procedures to identify, prioritise and address the needs and concerns of its
stakeholders, across businesses and units, in a continuous, consistent and systematic manner.The Company has
mapped its internal and external stakeholders and believes that an effective stakeholder engagement process is
necessary to achieve its sustainable goal of inclusive growth.
Internal Stakeholders: Business Partner (Kansai Paint Co., Ltd., Japan), Shareholders & Investors, Employees
External Stakeholders: Customers, Suppliers, Community
2 List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder
group.
Stakeholder Whether identified Channels of communication Frequency Purpose and scope of
Group as Vulnerable of engagement including
& Marginalised engagement key topics and
Group (Yes/No) concerns raised during
such engagement
No • Emails • Board Meetings • Quarterly Critical Disclosures,
Company Functions • Audits and Growth Status, Strategy,
Review Meets • Multi-Stakeholder Market Gaps, Technology
Business Partner Platforms (Conferences, assistance
Knowledge sharing Conclaves)
No • Board Meetings • Investor / Quarterly Financial Disclosures,
Analyst Meets • Annual Report Business growth plan,
• Media Updates and Press Market challenges and
Shareholder & Releases • Website coping strategy
Investors
233
Stakeholder Whether identified Channels of communication Frequency Purpose and scope of

Group as Vulnerable of engagement including
& Marginalised engagement key topics and
Group (Yes/No) concerns raised during
such engagement
No • Emails • Meetings • Regular New innovations,
Customer Satisfaction Survey Grievance Redressal,
• Multi-Stakeholder Platforms Changing Customer
Customers (Conferences, Knowledge sharing Preferences
Conclaves)
No • Review Meetings • Emails Regular Human Capital
• Appraisals (Contest - Nerolac Development (UDAAN,
Premier League) • Employee Percipio, Pulse of the
Employees Engagement Surveys Organization, Employee
• Work Line Portal, Training Well being (AllizWell),
Programmes, Idea Management • Improving productivity &
Monthly Newsletter ‘Impressions’ morale - SAMVAAD
• Town Hall meeting by MD •
‘Coffee with HR’ • Suggestion
schemes and quality circles
• Advanced Business Skills
Modules • Great Place to Work
Survey • I am Nerolac Application
No • Emails • Meetings • Supplier Quarterly Supply chain Integration,
Portal • Supplier Audits latest market innovation,
• Vendor Development Cost Reduction, Social
Suppliers Programmes • Vendor and relationship capital
Performance/Rating • Multi development
stakeholder Platforms
(Conferences, Knowledge
Sharing Conclaves) • Joint Value
Creation Programme for cost
competitiveness
Yes • Community Welfare Programmes Quarterly CSR, Grievnaces
• Community visits / meeting Redressal, Social and
• Local authority and relationship capital
Community town council meetings development
1 Provide the processes for consultation between stakeholders and the Board on economic, environmental, and
social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
By involving each stakeholder group in the consultation process, KNPL gathers a diverse range of perspectives on economic,
environmental, and social issues and work towards creating sustainable and socially responsible business practices.
1) Business Partners: Periodic review of ESG performance is conducted and also long term goals at group level is
framed by Business Partners. These consultations allow business partners to provide feedback and suggestions
on economic factors and relevant topics.
Shareholders & Investors: KNPL values the input and feedback of its shareholders and investors. To foster
2)
effective consultation, the Company hosts annual general meetings and quarterly investor calls. These forums
provide an opportunity for stakeholders to raise economic, environmental, and social concerns, and for the board
to address them accordingly.
3) Customers: KNPL conducts customer satisfaction surveys, encourages customer interactions through meetings
and visits to KNPL facilities, and also maintains a presence on social media platforms. Through these channels,
customers can provide feedback on economic factors, as well as environmental and social aspects, helping KNPL
to enhance its products and services accordingly.
Employees: KNPL organises employee trainings, implements well-being initiatives, establishes connect programs,
4)
and conducts satisfaction surveys to gain valuable insights and perspectives of its employees. These mechanisms
allow employees to share their views on economic matters, as well as environmental and social issues. Additionally,
employees actively participate in corporate social responsibility (CSR) activities, contributing to the Company’s
overall sustainability efforts.
234
5) Suppliers: KNPL acknowledges the importance of collaborating with its suppliers to promote sustainable practices
throughout the supply chain. The Company conducts supplier training and awareness sessions to ensure alignment
with its environmental and social objectives. Regular audits are performed to assess compliance, and meetings are
held to discuss ongoing collaborations and address any concerns. KNPL also engages in collaborative projects with
suppliers and implements supplier performance management systems to monitor progress and provide feedback
on economic factors
Community: KNPL recognises the significance of engaging with the local communities surrounding its plants. The
6)
Company actively seeks to understand the needs of these communities through consultations and dialogues. This
engagement allows KNPL to address economic, environmental, and social concerns specific to the community’s
context. Under its CSR initiatives, KNPL provides solutions that contribute to the local economy, promote
environmental stewardship, and support social well-being.
2 hether stakeholder consultation is used to support the identification and management of environmental, and
W
social topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on
these topics were incorporated into policies and activities of the entity.
Yes, the stakeholder consultation is used to support the identification and management of environmental topics
1) Business Partners: KNPL has aligned the Materialities and sustainability targets with its partners Kansai Paints, Japan
2) Shareholders & Investors: The feedback from the shareholders has helped KNPL to further strengthen its ESG
disclosures and participation in leading ESG indices, through our Sustainability microsite, annual reports and
through our investor presentations
3) Customers: KNPL has been working on products with postive environmental impacts for todays environmentally-
consius customers. we have developed sustainable low -VOC products which are lead and heavy metal free for
Decorative segment. Also, for our Industrial segment we are contantly developing products which consume less
energy and water and we have started to discussion with our suppliers for reduction in value chain emissions.
Employees: KNPL has conducted multiple forums to involve employees through monthly newsletter, training and
4)
awareness, key achievements, ESG reviews.
5) Suppliers: Suppliers feedback is used to Introduce environment friendly raw materials and green raw materials
6) Community: Various projects are undertaken post feedback from the communities. Initiatives like pond rejuvenation,
women empowerment and livelihood intervention, etc”
3 Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalised stakeholder groups.
The Company participates in Corporate Social Responsibility (CSR) activities that promote social advancement, with
a focus on events that benefit the underprivileged and disadvantaged. Encouraging employee participation in CSR
initiatives across the country also fosters a sense of societal duty on an individual level The following are broad definitions
for all programmes:
1) Livelihood & Skill Enhancement - Contribution to the socio-economic development of the nearby communities
and imparting trainings to enhance their capacity and skill-set with programs like Classroom Training and Mobile
Training Academy (Pragrati Express)
2) Promoting Education - Collaboration with various educational institutes to promote education in rural areas . Major
activities include construction of classrooms, labs, provision of necessary equipment and school accessories
3)
Rural/Community Development - Reaching out to the grassroot communities by providing basic facilities &
amenities in the villages near our plant/ depot locations and work to provide basic infrastructure/facilities to the rural
community residing in the nearby areas of the plants, in order to improve their basic living standards. The initiatives
include provision of bore wells, drinking water facilities, bus shelters, community centres,etc
4) Preventive Health Care and Sanitation - Provision of basic health care & sanitation facilities to improve general
health condition and sanitation of the communities we operate in and organising health and awareness sessions
and provision of necessary sanitation facilities.
235
5) Ensuring Environmental Sustainability - Strong belief in responsible consumption of resources guides our commitment
to preserve natural resources & ensure clean environment and Implementation of watershed development projects
- Pond cleaning, Desilting / deepening of the pond and overall pond restoration, Other activities include greenbelt
developement, tree platforms, parks and construciotn of solar lights
6) Restoration of Buildings & Sites of Historical Importance - Projects for conservation of National Heritage sites, Art
& Culture and promotion & development of traditional arts and handicrafts. Some of our projects include paining of
Ramlalla Sadan Devasthan, Ayodhya and creating a platform that aims to bring alive the lost Indian art forms and
help the tribal artists earn a livelihood.
For Detailed instances of engagement please refer to Annexure 1 to the Board’s Report
Principle 5 Businesses should respect and promote human rights
1 Employees and workers who have been provided training on human rights issues and policy(ies) of the entity,
in the following format:
Total (A) No. of % (B/A) Total (C) No. of % (D/C)
employees/ employees/
workers workers
covered (B) covered (D)
Permanent Employees 2,649 2,260 85% 2,400 1,897 79%
Permanent Workers 730 628 86% 705 409 58%
The Code of Conduct and the policies on Human Rights are applicable to all the employees and workers including
contractual
2 Details of minimum wages paid to employees and workers, in the following format:

Total (A) Equal to More than Total (D) Equal to minimum More than
minimum wage minimum wage wage minimum wage
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees Employees
Permanent 2,649 0 0% 2,649 100% 2,400 0 0% 2,400 100%
Male 2,546 0 0% 2,546 100% 2,335 0 0% 2,335 100%
Female 103 0 0% 103 100% 65 0 0% 65 100%
Other than 1,950 1,046 54% 904 46% 1,450 956 66% 494 34%
permanent
Male 1,843 978 53% 865 47% 1,386 925 67% 461 33%
Female 107 68 64% 39 36% 64 31 48% 33 52%
Workers Workers
Permanent 730 0 0% 730 100% 705 0 0% 705 100%
Male 725 0 0% 725 100% 700 0 0% 700 100%
Female 5 0 0% 5 100% 5 0 0% 5 100%
Other than 3,530 1,593 45% 1,937 55% 3,193 2,104 66% 1,089 34%
permanent
Male 3,529 1,593 45% 1,936 55% 3,181 2,097 66% 1,084 34%
Female 1 0 0% 1 100% 12 7 58% 5 42%
KNPL has provision for providing more than or equal to statutorily required minimum wage to all its Employees
and Workers
236
3 Details of remuneration/salary/wages, in the following format:
Benefits Male Female

Number Median remuneration/ Number Median remuneration/
salary/ wages of salary/ wages of
respective category respective category
Board of Directors (BoD) 6 41,00,000 1 40,25,000
Key Managerial Personnel 3 2,00,42,994 0 -
Employees other than BoD & KMP 2,543 8,16,020 103 6,89,853
Workers 725 5,80,983 5 3,66,199*
*Employees belonging to helper category
4 Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues
caused or contributed to by the business? (Yes/No)
Yes, Respective HR Partners are responsible for addressing human rights and concerns raised by the employees or
workers. They play a crucial role in ensuring that human rights are respected in the workplace and that employees’ or
workers concerns are addressed. They are responsible for maintaining a safe and healthy work environment, promoting
diversity and inclusion, and ensuring that employees are treated fairly and with dignity and respect.
5 Describe the internal mechanisms in place to redress grievances related to human rights issues.
Whenever employees or workers raise concern related to human rights, such as discrimination, harassment, or other
violations of their rights, HR Partners takes these concerns seriously and investigate them promptly and thoroughly.
They also provide support and resources to employees who are in need of assistance.
6 Number of Complaints on the following made by employees and workers:
FY 22-23 FY 21-22
Filed Pending Remarks Filed Pending Remarks
during resolution during resolution
the year at the end the year at the end
of the year of the year
Sexual Harassment 0 0 - 0 0 -
Discrimination at workplace 0 0 - 0 0 -
Child Labor 0 0 - 0 0 -
Forced Labour/ Involuntary Labour 0 0 - 0 0 -
Wages 0 0 - 0 0 -
Other human rights related issues 0 0 - 0 0 -
7 Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
Any incident reported is handled as confidential information. Person(s) mentioned in the report and alleged as having
violated the relevant principles or rules shall not be informed of the report unless and until it shall be necessary for the
purpose of the investigation.
Appropriate disciplinary action will be initiated against any person who retaliates, directly or indirectly, against any person
for reporting an actual or suspected violation of any organisation policy, rule or regulation or assisting in any investigation
of any such violation or suspected violation.
237
8 Do human rights requirements form part of your business agreements and contracts? (Yes/No)
KNPL understands the importance of promoting and protecting human rights throughout its value chain. We have
extended our Supplier Code of Conduct to our value chain partners. Also, we include human rights in our business
agreements wherever required. By doing so, we are setting clear expectations for our partners for upholding human
rights standards.
9 Assessment for the year:
%of your plants and offices that were assessed

(by entity or statutory authorities or third parties)
Child Labour
Forced/ Involuntary Labour
Sexual Harassment
Yes, exernal assurance for disclosures is conducted by M/s Aneja associates
Discrimination at Workplace
Wages
Others - Please specify
10 rovide details of any corrective actions taken or underway to address significant risks /concerns arising from
P
the assessments at Question 9 above
Not Applicable
1 Details of a business process being modified / introduced as a result of addressing human rights grievances/
complaints.
No process introduced or modified as no observations reported
2 Details of the scope and coverage of any Human rights due-diligence conducted.
Our scope for Human rights due dilligence conduted by a third party covered Occupational Health and Safety,
Non- discriminiation, freedom of association and collective bargaining, child labor, forced or compulsory labor and
community engagement
3 Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights
of Persons with Disabilities Act, 2016?
Currently as an organisation, we are working on absorption and provisions for dfferently abled friendly and accessible
work place and premises as per the requirements of the Rights of Persons with Disabilities Act, 2016.
As a step towards Disabiity Inclusion at KNPL, we successfully completed Accessibility audit of new HO Premises.
4 Details on assessment of value chain partners on Child Labour, Forced/ Involuntary Labour, Sexual Harassment,
Discrimination at Workplace, Wages.
We have not carried out assessment on the mentioned parameters
5 Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
the assessments at Question 4 above.
Not Applicable

238
Principle 6 Businesses should respect and make efforts to protect and restore the environment
1 Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
Parameter - in GigaJoules (GJ) FY 22-23 FY 21-22

Total Electricity Consumption (A) 2,55,621 2,26,529
Total Fuel Consusmption (B) 1,10,288 90,495
Energy consumption through other Sources (C) (GJ) 1,34,835 1,27,883
Total Energy Consumption (A + B + C) (GJ) 5,00,744 4,44,907
Energy intensity per rupee of turnover (Total energy consumption/ turnover in 71 75
rupees) (GJ/ ₹Crores)
Energy intensity (optional) – the relevant metric may be selected by the entity 1.34 1.24
(GJ/KL of FG)
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency
Yes, exernal assurance for disclosures is conducted by M/s Aneja associates (Link to the assessment)
2 Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the
PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any
Not Applicable
3 Provide details of the following disclosures related to water, in the following format:
Parameter FY 22-23 FY 21-22

Water Withdrawal by sources (in kilolitres)
(i) Surface water 0 0
(ii) Ground water 1,22,168 1,35,459
(iii) Third party water 3,09,756 2,86,199
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal (in kilolitres) 4,31,924 4,21,658
(i + ii + iii + iv + v)
Total volume of water consumption (in kilolitres) 5,73,465 5,56,369
Water intensity per rupee of turnover (Water consumed / turnover) 81 94
Water intensity (optional) – Total fresh water consumption/Production of FG (KL/ 1.16 1.18
KL of FG)
ote: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external
N
4 Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
KNPL has ensured Zero Liquid Discharge across our major operating facilities (Bawal, Hosur, Jainpur, Sayakha,
Lote, Goindwal, Sarigam). Our ZLD strategy has two elements, reduction at source and reuse, with regard to effluent
management. We had installed dedicated treatment facilities for domestic and industrial effluents across all our plants.
Our industrial effluents are treated in Effluent Treatment Plant (ETP) and then passed through Reverse Osmosis (RO)
and Multi-Effect Evaporator (MEE).
239
5 Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
Parameter Please specify unit FY 22-23 FY 21-22

NOx 20 24
SOx (μg/m3) 13 17
Particulate Matter (PM) Concentration for PM 2.5 - 31 PM 2.5 - 35
Ambient air quality PM 10 - 64 PM 10 - 67
Persistent Organic Pollutants (POP) NA NA
Volatlie Organic Compounds (VOC) ppm - -
Hazardous air Pollutants (HAP) - -
Others - please specify - -

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N)
If yes, name of the external agency
6
Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the
following format:

Total Scope 1 emissions Metric tonnes of 6,106 4,607
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, CO2 equivalent
SF6, NF3, if available)
Total Scope 2 emissions Metric tonnes of 39,717 35,292
Total Scope 1 and Scope 2 6.47 6.71
emissions per rupee of turnover
Total Scope 1 and Scope 2 emission intensity MTCO2e/KL of FG 0.12 0.11
(optional)– MTCO2e/KL of FG
The above emissions are on standalone basis
7 Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

Yes, KNPL has always been pro-active in its efforts to reduce GHG emissions. Continuous efforts are being made
to reduce Scope 1, Scope 2 and Scope 3 greenhouse gas emissions. Initiatives are being taken to increase the use
of renewable energy sources. KNPL has also set an ambitious goal of obtaining 70% of our electricity needs from
renewable sources by FY 2029-30.
8 Provide details related to waste management by the entity, in the following format:

Total Waste generated (in metric tonnes)
Plastic waste (A) 1,037 787
E-waste (B) 5 17
Bio-medical waste (C) 0.07 0.1
Construction and demolition waste (D) 0 0
Battery Waste (E) 1 3
Radioactive waste (F) 0 0
Other Hazardous waste. Please specify, if any. (G) 2,398 2,464
240

ETP sludge 102 82
Waste Oil(ETP), Spent/Lube Oil 1 6
Solvent Recovery Residue 731 644
Dirty Resin 1 16
Mixed Paint 32 26
Contaminated cotton waste 41 39
Filter Cartridge 11 10
Barrels, Tins Drums 1,479 1,641
Other Non-hazardous waste generated (H). Please specify, if any.
4,000 3,346
(Break-up by composition i.e. by materials relevant to the sector)
Powder Waste (Damaged powder, powder coating fines & chips and harden lumps) 1,081 1,120
Metal Scrap (MS, Tin, SS and Iron Scrap; Aluminium sheet, other metal scrap) 1,345 663
Wooden scrap 243 144
Paper waste 281 318
Carton Waste (Scrap & Empty Carton) 252 236
Food waste 19 26
Non Commercial Value Scrap (Garbage etc.) 431 512
Boiler ash 347 328
Mix Garbage 2
MEE Salt 0.5 0.7
Total (A + B + C + D + E + F + G + H) 7,441 6,617
For each category of waste generated, total waste recovered through recycling, re-using or other recovery
operations (in metric tonnes)
Category of waste
(i) Recycled 2,503 1,942
(ii) Re-used 1,032 639
(iii) Other recovery operations 511 449
Total 4,046 3,030
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration 688 763
(ii) Landfilling 48 58
(iii) Other disposal operations 1,714 963
Total 2,450 1,784
9 Briefly describe the waste management practices adopted in your establishments. Describe the strategy
adopted by your Company to reduce usage of hazardous and toxic chemicals in your products and processes
and the practices adopted to manage such wastes
We are committed to managing waste efficiently within our operations and also to going beyond that to contribute more
to the larger cause of protecting the natural world from manufacturing waste. We firmly believe in promoting industry best
practices of waste minimisation, waste treatment, and safe disposal.
241
Few of the practices adopted at our premises includes:

a) Dedicated storage for category-wise waste in scrap yard across all plants
b) Systematic tracking of the quantity of waste generated and waste disposed off
c)
All the waste is disposed of as per statutory requirement to authorised Treatment, Storage and Disposal
Facilities (TSDFs), who then dispose, reuse or recycle it as applicable
d) Co-processing of hazardous waste across all plants
e) Imbibed the principle of 3Rs – Reduce, Reuse and Recycle – for efficient waste management
Hazardous waste generated due to our operations mainly includes distillation residue, ETP sludge, paint sludge,
dirty resin, contaminated barrel/tins, filter cartridge and contaminated cotton waste.
10 If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where
environmental approvals / clearances are required, please specify details in the following format:
Location of operations/offices Type of operations Whether the conditions of environmental

approval / clearance are being complied
with? (Y/N) If no, the reasons thereof and
corrective action taken, if any.
None of our operations/offices are located in/ - Not Applicable
around ecologically senstitive areas
11 Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in
the current financial year:
Not Applicable
12 Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection
act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format:
*Yes, we have ensured 100% compliances with all the statuatory requirements. During the reporting period, no fines
were levied by government or regulatory authorities.(FY 22-23)
1 Provide break-up of the total energy consumed (in Joules or multiples) from renewable and
non-renewable sources, in the following format:
Parameter - in GigaJoules (GJ) FY 22-23 FY 21-22
From renewable sources
Total electricity consumption (A) 74,631 66,764
Total fuel consusmption (B) 33,932 36,465
Energy consumption through other Sources (C) 1,34,835 1,27,883
Total energy consumed from renewable sources (A + B + C) 2,43,398 2,31,112
From non-renewable sources
Total electricity consumption (D) 1,80,990 1,59,765
Total fuel consusmption (E) 76,356 54,030
Energy consumption through other Sources (F) 0 0
Total energy consumed from non-renewable sources (D + E + F) 2,57,346 2,13,795

Yes, external assurance for disclosures is conducted by M/s Aneja associates
242
2 Provide the following details related to water discharged:

Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment - -
- With treatment - please specify level of treatment - -
(ii) To Ground water
- No treatment - -
(iii) To Seawater
- No treatment - -
(iv) Sent to third-parties
- No treatment - -
- With treatment - please specify level of treatment 463 817
(v) Others
- No treatment - -
Total water discharged (in kilolitres) 463 817

Yes, external assurance for disclosures is conducted by M/s Aneja associates
3 Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
For each facility / plant located in areas of water stress, provide the following information:
(i) Name of the area - Bawal, Harayana & Goindwal Sahib, Punjab
(ii) Nature of operations - Manufacturing
(iii) Water withdrawal, consumption and discharge in the following format:
Water Withdrawal by sources (in kilolitres)
(i) Surface water 0 0
(ii) Ground water 0 0
(iii) Third party water 1,21,027 1,10,893
(iv) Seawater / desalinated water 0 0
(v) Others 0 0
Total volume of water withdrawal (in kilolitres) 1,21,027 1,10,893
Total volume of water consumption (in kilolitres) 1,50,606 1,37,097
Water intensity per rupee of turnover (Water consumed / turnover) 17.1 18.6
Water intensity (optional) – Total fresh water consumption/Production of FG 1.29 1.26
(KL/KL of FG)
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water
- No treatment - -
(ii) Into Ground water
- No treatment - -
243

(iii) Into Seawater
- No treatment - -
(iv) Sent to third-parties
- No treatment - -
(v) Others
- No treatment - -
Total water discharged (in kilolitres) 0 0

4 Please provide details of total Scope 3 emissions & its intensity, in the following format:
Total Scope 3 emissions Metric tonnes of 16,57,035 15,00,740
Total Scope 3 emissions per rupee of turnover 234.0 252.3
Total Scope 3 emission intensity 2.4 2.3
(optional)– the relevant metric may be selected by the entity

The above emissions figures also includes Scope 3 emissions from OPCs

5 With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide
details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention
and remediation activities.
Not applicable, since None of our operations/offices are located in/around ecologically senstitive areas
6 If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide
details of the same as well as outcome of such initiatives, as per the following format:
S. Initiative undertaken Outcome of the initiative
No
1 Improvised grinding technology Reduction in energy consumption
2 Advanced filtration system Reduction in emulsion filtration waste
3 Resin colour improvement Reduction in carbon footprint
4 Usage of new valves in powder coating manufacturing Reduction in powder waste
5 Prefilter in CED Reduction in hazardous waste
7 Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Yes, to sustain the business operations, minimise the impact during and after disaster event and faster recovery of
the operations and services, KNPL has put in place an effective documented framework and a process for managing
critical activities and their dependencies during occurrence of a disaster event or a very high impact risk event. For all
Manufacturing Units, R&D Centre, Head Offices, Depots/ Regional Distribution Centres and Regional Offices respectively
have a designated framework in place for such an event.
244
This plan applies to the factors which assumes occurrence of a disaster event or a very high impact risk event which can
interrupt business. To begin with, we have in place, a containment strategy to contain the impact of the event, a business
continuity strategy to ensure continuity of operations under digress circumstances and clearly established pyramid of
authority and responsibility in case of such an event. “
8 isclose any significant adverse impact to the environment, arising from the value chain of the entity. What
D
mitigation or adaptation measures have been taken by the entity in this regard.
We have not currently monitored the impacts to the environment arising from the value chain of the entity
9 Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
Not Applicable
Principle 7 usinesses, when engaging in influencing public and regulatory policy, should do so in a manner that
B
is responsible and transparent
1 (a) Number of affiliations with trade and industry chambers/ associations
KNPL engages with the public and regulatory bodies in a responsible manner. It participates in the same on a need
basis. KNPL is a member of the following mentioned 8 trade associations
1 (b) List the top 10 trade and industry chambers/ associations (determined based on the total members of such
body) the entity is a member of/ affiliated to
S. Name of the trade and industry chambers/ associations Reach of trade and industry chambers/
No. associations (State/National)
1 Bombay Chamber of Commerce National
2 Maharashtra Economic Development Council State
3 The Indian Paint Association National
4 Bombay Management Association National
5 Indian Chemical Council National
6 The Advertising Standards Council of India (ASCI) National
7 Paint India (Colour Publications) National
8 Employers Federation of India National
2 Provide details of corrective action taken or underway on any issues related to anti competitive conduct by the
entity, based on adverse orders from regulatory authorities.
FY 22-23
Name of Authority Brief of the Case Corrective Action Taken
- No case related to anti competitive -
conduct by the entity reported in
FY 22-23
245
1 Details of public policy positions advocated by the entity:
Public Policy Method resorted for Whether Frequency of Review Web Link, if
Advocated such advocacy information by Board (Annually/ available
available in public Half yearly/Quarterly/
Others – please
domain? (Yes/No)
specify)
Extended Producers Through Indian Paint - - -
Responsibility Association
KNPL has a ‘Advocacy of Public & Regulatory Policy’ which helps to provide inputs on matters concerning business and
society in general through trade and industry chambers
For advocacy on policies related to the Paint Industry, the Company works through industry associations such as
Indian Paints Association, Confederation of Indian Industries, etc. There are specified officials in the Company who are
authorised for communicating with industrial bodies and managing government affairs in accordance with Communication
Policy of the Company.
Principle 8 Businesses should promote inclusive growth and equitable development
1 Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
current financial year.
Not Applicable
2 Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken
by your entity, in the following format:
Not Applicable
3 Describe the mechanisms to receive and redress grievances of the community.

All of our plants are located in village areas, the nearby communities highlight the grievances to the Panchayats and
Government authorities who in turn help us to address the grievances of the communities. The highlighted issues are
then taken up by our plant team as projets in that area.
4 Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY 22-23 FY 21-22
Directly sourced from MSMEs/ small producers 16% 12%
Sourced directly from within the district and neighbouring districts Majority of PM is sourced from
neighbouring districts within 10km
range from plant
The Company gives priority to suppliers in local community for sourcing of input material, baring specialty chemicals
which are procured from buyers who may not be available in local vicinity.
1 Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact
Assessments (Reference: Question 1 of Essential Indicators above):Details of public policy positions advocated
by the entity:
Not Applicable
246
2 Provide the following information on CSR projects undertaken by your entity in designated aspirational districts
as identified by government bodies:
S. State Aspirational District

No.
1 Assam Goalpara
2 Bihar Aurangabad
3 Bihar Begusarai
4 Bihar Gaya
5 Bihar Muzaffarpur
6 Chhattisgarh Ranjandgaon
7 Jammu & Kashmir Baramulla
8 Jammu & Kashmir Kupwara
9 Karnataka Gadag
10 Karnataka Yadgir
11 Madhya Pradesh Barwani
12 Maharashtra Washim
13 Orissa NuaPada
14 Rajasthan Baran
15 Tamil Nadu Ramanathapuram
16 Uttar Pradesh Bahraich
17 Uttar Pradesh Siddharth Nagar
The Amount spent is not monitored on district level will be montiored from FY 23-24 opnwards
3 (a)
Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalised /vulnerable groups? (Yes/No)
C
urrently, there is no preferential procurement policy in place. However, company does not discrimate against any groups
for sourcing we use a variety of variables like Quality, service, technical competence and price to decide the vendors.
3 (b) From which marginalised /vulnerable groups do you procure?

Not Applicable
3 (c) What percentage of total procurement (by value) does it constitute?

Not Applicable
5 Details of corrective actions taken or underway, based on any adverse order in intellectual property related
disputes wherein usage of traditional knowledge is involved.
Not Applicable
6 Details of beneficiaries of CSR Projects:

The Annual Report on CSR activities undertaken by the Company during the financial year ended 31st March, 2022 is given in
Annexure 1 to the Boards Report which forms part of this Annual Report.
Principle 9 Businesses should engage with and provide value to their consumers in a responsible manner
1 Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

KNPL’s uncompromising commitment to providing worldclass products and services to customers is supported by its
concern for the safety of its customers/consumers. The technical and production teams work together to ensure that a
customer’s concern is successfully resolved. If needed, teams from Kansai Paint Co., Limited, Japan are also involved.
247
NPL provides technical sales service personnel who are stationed at customer lines for automotive and certain Industrial
K
Original Equipment Manufacturer (OEM) customers to ensure that the product provided by it runs smoothly on the line.
These personnel are available to support customer lines round the clock and provide various value analysis and value
engineering activities to customers.
All customer product complaints are recognised and recorded in the IT system. Each complaint has a unique reference
number. They are then tracked to closure at the customer end by the Quality Assurance function as per internally laid-
down timeline norms. Most products are batch-managed and KNPL conducts root-cause analysis to ascertain the issue
with a product when needed. KNPL extends this rigour of monitoring and control of quality to its suppliers as well.
KNPL has set up a dedicated consumer helpline, 1800-209-2092, for consumers to record their issues. Consumer
related issues are also tracked to successful resolution. In addition, dealers can call up KNPL and record any grievance
they may have regarding the Company. These are then tracked to successful resolution
2
Turnover of products and/ services as a percentage of turnover from all products/service that carry
information about:
As a %age to total turnover

Enviromental and Social parameters relevant to the product All of our Products
Safe and responsible usage All of our Products
Recycling and/or safe disposal All of our Products
KNPL discloses information such as directions for use, environmental parameter relevant to product and instructions
on safe disposal also provided on the product packaging to inform and educate consumers about safe and responsible
usage of products or services.
Product information is also available on the Product Data Sheet, and the MSDS (Material Safety Data Sheet) is available
with customers of the Company and on the website of the Company, as applicable. It includes product description and
information on product performance features & benefits, its application and usage and precautions for safe usage
along with technical data. Few of this information such as description, performance features & benefits, application &
safe usage instructions are also provided on the product packaging to inform and educate consumers about safe and
responsible usage of products or services.
Product information is also available with the customers of the company as applicable
3 Number of consumer complaints in respect of the following:
FY 22-23 FY 21-22
Received Pending Remarks Received Pending Remarks
during the Resolution during the Resolution
year at end of year at end of
year year
Data Privacy Nil - Nil -
Advertising Nil - Nil -
Cyber-Security Nil - Nil -
Delivery of essential Services NA - Nil -
Restrictive Trade Practices Nil - Nil -
Unfair Trade Practices Nil - Nil -
Other
4 Details of instances of product recalls on account of safety issues:
Number Reason for Recall

Voluntary Recalls Nil -
Forced Recalls Nil -
248
5 oes the entity have a framework/ policy on cyber security & risks related to data privacy? (Yes/No) If available,
D
provide a web-link of the policy.

Yes, we have a Policy on Cybersecurity and Policy on Data Privacy. (Weblink- https://www.nerolac.com/financial/
policies.html)
6 Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls;
penalty / action taken by regulatory authorities on safety of products / services.

No corrective action required to be undertaken on issues related to advertising, and delivery of essential services; cyber
security and data privacy of customers; re-occurrence of instances of product recalls; as there are no such cases filed
against the organisation
1 Channels / platforms where information on products and services of the entity can be accessed (provide web link,
if available).

All the required information on our products and services is available & can be accessed at our website https://www.
nerolac.com/
The information is updated timely on the platform. Apart from this, various digital product posts are also offered on our
social media handles such as Facebook, YouTube, Instagram, Twitter and LinkedIn for customer engagement
2 Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
Product information is available on the Product Data sheet, and the MSDS (Material Safety Data Sheet) is available with
customers of the Company and on the website of the Company, as applicable. It includes product description and information
on product performace features & benefits, its aplication and usage and precautions for safe usage alongwith technical data.
Few of these information such as description, performance features & benefits, application & safe usage instructions are
also provided on the product packaging to inform and educate consumers about safe and responsible usage of products
or services
3 Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
Business continutiy plan, Risk management policy, mitigation plan and review mechanism in place to take care of
exegencies in supplies or services to the customer. Regular communication to our customers (OEMs. Dealers) is
provided on disruption of any product or service.
4 Does the entity display product information on the product over and above what is mandated as per local
laws? (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to
consumer satisfaction relating to the major products / services of the entity, significant locations of operation
of the entity or the entity as a whole? (Yes/No)
Yes, the products of KNPL display all information as mandated by law. KNPL also discloses information not mandated by law such
as directions for use, environmental parameter relevant to product, safe and responsible usage and instructions on safe disposal
KNPL regularly engages with customers to get their feedback on products and gauge their satisfaction level. Engagement
mechanisms include brand track, customer meets, customer satisfaction feedback and surveys, customer and product training
at the customer’s end. For its customers, detailed customer surveys are carried out. Based on the feedback received, KNPL
undertakes and tracks various initiatives to ensure that the overall satisfaction level of a customer is improved.
5 Provide the following information relating to data breaches:
5 (a) Number of instances of data breaches along-with impact
Zero (0), no instances of data breaches reported in FY 22-23
5 (b) Percentage of data breaches involving personally identifiable information of Customer
Nil

Anuj Jain
Mumbai, 8th May, 2023 Managing Director
249
KANSAI NEROLAC PAINTS LIMITED FINANCIAL STATEMENTS

To the Members of Kansai Nerolac Paints Limited
Report on the Audit of the Standalone Financial Statements

Opinion
We have audited the accompanying standalone financial statements of Kansai Nerolac Paints Limited (“the Company”),
which comprise the Balance sheet as at March 31, 2023, the Statement of Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes
to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Companies Act, 2013, as amended (“the Act”) in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31, 2023, its profit including other comprehensive income, its cash flows and the changes in equity
for the year ended on that date.
Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Standalone Financial Statements’ section of our report. We are independent of the
Company in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the standalone financial statements.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of
the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have
fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The
results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying standalone financial statements.
Key audit matters How our audit addressed the key audit matter
Revenue recognition on sale of goods (as described in Note 28 of the standalone financial statements)
Revenue is measured based on the transaction Our audit procedures included, amongst others:
price, which is the consideration, adjusted for • We read and evaluated the Company’s policies for revenue
volume discounts, rebates, scheme allowances, recognition and assessed its compliance with Ind AS 115 ‘Revenue
price concessions, incentives and returns, if from contracts with customers’;
any, (‘variable consideration’) as specified in the
contracts with the customers. • We obtained an understanding, evaluated the design and tested
the operating effectiveness of internal controls related to sales
including variable consideration;
An estimate of variable consideration payable • We performed the following tests for a sample of transactions
to the customers is recorded as at the year-end. relating to variable consideration:
Such estimation is done based on the terms of
contracts, rebates and discounts schemes and • Read the terms of contract including rebates and discounts
historical experience. schemes as approved by authorized personnel.
We identified estimation of variable consideration • Assessed computation of variable consideration by
as a key audit matter because the Company’s comparing it with the budget, schemes, past trends and
management exercises judgment in calculating evaluated the reasons for deviation, if any.
the said variable consideration.
• We read and assessed the relevant disclosures made within the
standalone financial statements.
250
Standalone 103rd Annual Report 2023
Independent Auditor’s Report (Continued)

Assessment of impairment of investments in subsidiaries (as described in Note 7 of the standalone financial statements)
The carrying values of the Company’s investments Our audit procedures included, amongst others:
in subsidiaries, including corporate guarantees • We evaluated the key judgements / assumptions underlying
provided by the Company to the lenders of management’s assessment of potential indicators of impairment;
its subsidiaries, are assessed annually by
management for potential indicators of impairment. • Where potential indicators of impairment were identified,
As a result, an impairment assessment was we evaluated management’s impairment assessment and
required to be performed by the Company by assumptions around the key drivers of the cash flow forecasts,
comparing the carrying value of these investments discount rates, expected growth rates and terminal growth rates
and guarantees to their recoverable amount to by comparison with available financial information including
determine whether an impairment was required. considerations of the economic conditions and audited financial
statements of the subsidiaries;
For the above impairment testing, management • We compared the forecast of future cash flows to business plan
has determined the value in use and the fair value considering economic conditions and previous forecasts to the
less cost to sell as applicable. Value in use has actual results;
been determined by forecasting and discounting
future cash flows. • We performed sensitivity analysis to determine the impact of
changes in current and estimated future uncertain economic
The determination of value in use requires conditions and key assumptions, both individually and in
management to make estimates and judgments aggregate;
in respect of projected sales volume, margins, • We involved our valuation specialists to assist in evaluating the
terminal growth rates and discount rates. key assumptions and methodology used by the Company in
We identified the assessment of potential computing the recoverable amount;
impairment of investments including corporate • We read and assessed the relevant disclosures made within the
guarantees as a key audit matter because standalone financial statements.
impairment assessment involves significant degree
of management judgement in determining the key
assumptions and forecasting future cash flows.
Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual report, but does not include the standalone financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in
doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report
in this regard.
Responsibilities of Management for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with [the Companies (Indian Accounting Standards) Rules, 2015, as amended. This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
251

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone financial statements for the financial year ended March 31, 2023 and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India
in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income,
the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the
books of account;
252

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a
director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements
and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the
Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to
the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements – Refer Note 36 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company;
iv. a) The management has represented that, to the best of its knowledge and belief, and as disclosed
in the note 47 to the standalone financial statements, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, and as disclosed in
the note 47 to the standalone financial statements, no funds have been received by the Company
from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year
is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
As stated in note 18 to the standalone financial statements, the Board of Directors of the Company have
proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual
General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies
to declaration of dividend.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f.
April 1, 2023, reporting under this clause is not applicable.
per Anil Jobanputra
Partner
UDIN: 23110759BGVZSD8321
Date: May 08, 2023
253
Annexure 1 Independent Auditor’s Report

Annexure ‘1’ referred to in paragraph under the heading “Report on other legal and regulatory requirements” of our
report of even date
Re: Kansai Nerolac Paints Limited (“the Company”)
In terms of the information and explanations sought by us and given by the company and the books of account and
records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and
situation of Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of intangibles assets.
(b) All Property, Plant and Equipment have not been physically verified during the year by the management, but
there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) disclosed in note 2 to the financial statements included in
property, plant and equipment are held in the name of the Company. Certain title deeds of the immovable Properties,
in the nature of leasehold land disclosed in note 4 to the financial statements included in Right of use assets (ROU),
as indicated in the below mentioned cases which were acquired pursuant to a Scheme of Amalgamation approved
by National Company Law Tribunal (NCLT), are not individually held in the name of the Company.
Description of Gross Held in name of Whether Period held – Reason for not being held in
Property carrying value promoter, indicate the name of Company
(` In Crores) director or range, where
their relative appropriate
or employee
Leasehold land at Goa 0.30 Marpol Private No Less than 2 These properties were acquired
Limited years pursuant to a scheme of
Leasehold land at Vapi 0.12 Perma No Less than 2 amalgamation and continue to
Construction Aids years be registered in the name of
Private Limited amalgamating Companies.
However, the deed of merger
has been registered by the
Company.
(d) The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible
assets during the year ended March 31, 2023.
(e) There are no proceedings initiated or are pending against the Company for holding any benami property under
the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) The inventory has been physically verified by the management during the year except for inventories lying with
third parties and discrepancies of 10% or more in aggregate for each class of inventory were not noticed in respect
of such physical verification. In our opinion, the frequency of verification by the management is reasonable and
the coverage and procedure for such verification is appropriate. Inventories lying with third parties have been
confirmed by them as at March 31, 2023 and discrepancies of 10% or more in aggregate for each class of
inventory were not noticed in respect of such confirmations.
(b) The Company has not been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks
or financial institutions during any point of time of the year on the basis of security of current assets. Accordingly,
the requirement to report on clause 3(ii)(b) of the Order is not applicable to the Company.
254
Annexure 1 Independent Auditor’s Report (Continued)

(iii) (a) During the year the Company has stood guarantee to companies as follows:
(` in Crores)
Guarantees Security Loans Advances

in nature of
loans
Aggregate amount granted / provided during the year
– Subsidiaries 8.60 — — —
– Others — — — —
Balance outstanding as at balance sheet date in respect of above cases
– Subsidiaries — — — —
– Others — — — —
During the year the Company has not provided loans, advances in the nature of loans or provided security to
companies, firms, Limited Liability Partnerships or any other parties.
(b) During the year the Company has not provided security and granted loans and advances in the nature of loans
to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the requirement to report on
clause 3(iii)(b) of the Order whether the security given and the terms and conditions of the grant of all loans and
advances in the nature of loans is not applicable to the Company. During the year, the investments made and
guarantees provided to companies are not prejudicial to the Company’s interest.
(c) The Company has not granted loans and advances in the nature of loans to companies, firms, Limited Liability
Partnerships or any other parties. Accordingly, the requirement to report on clause 3(iii)(c) of the Order is not
applicable to the Company.
(d) The Company has not granted loans or advances in the nature of loans to companies, firms, Limited Liability
Partnerships or any other parties. Accordingly, the requirement to report on clause 3(iii)(d) of the Order is not
applicable to the Company.
(e) There were no loans or advance in the nature of loan granted to companies, firms, Limited Liability Partnerships
or any other parties. Accordingly, the requirement to report on clause 3(iii)(e) of the Order is not applicable to the
Company.
(f) The Company has not granted any loans or advances in the nature of loans, either repayable on demand or
without specifying any terms or period of repayment to companies, firms, Limited Liability Partnerships or any other
parties. Accordingly, the requirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.
(iv) There are no loans, investments, and securities given in respect of which provisions of section 185 and 186 of the
Companies Act 2013 are applicable. Guarantees in respect of which provisions of sections 185 and 186 of the
Companies Act, 2013 are applicable have been complied with by the Company.
(v) The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be
deposits within the meaning of sections 73 to 76 of the Companies Act and the rules made thereunder, to the extent
applicable. Accordingly, the requirement to report on clause 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the
manufacture of paints, and are of the opinion that prima facie, the specified accounts and records have been made
and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) Undisputed statutory dues including goods and services tax, provident fund, employees’ state insurance, income-
tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues have
generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few
cases. According to the information and explanations given to us and based on audit procedures performed by us,
no undisputed amounts payable in respect of these statutory dues were outstanding, at the year end, for a period
of more than six months from the date they became payable.
255

(b) The dues of goods and services tax, provident fund, employees’ state insurance, income-tax, sales-tax, service
tax, duty of custom, duty of excise, value added tax, cess, and other statutory dues which have not been deposited
on account of any dispute, are as follows:
Name of the statute Nature of the Amount Period to which the amount Forum where dispute
dues unpaid* relates is pending
(` Crores)
The Central Excise Tax, Penalty 0.37 2000-01 and 2014-15 Commissioner (Appeals)
Act, 1944 and Interest
Sales Tax and Value Tax, Penalty 5.32 1980-81, 1991-92, 2007-08 to Assistant Commissioner
Added Tax Act and Interest 2011-12 and 2014-15
44.86 1991-92, 1995-96, 2001-02, Deputy Commissioner
2004-05 to 2006-07, 2009-10
to 2017-18
1.50 1996-97, 2004-05, 2008-09, Additional Commissioner
2009-10, 2011-12
21.12 2001-02, 2003-04, 2005-06, Joint Commissioner
2012-13, 2015-16
2.45 2005-06, 2008-09, 2009-10, Senior Additional Commissioner
2015-16, 2016-17 (Revision Board)
0.05 2002-03 Joint Commissioner (Appeals)
0.03 2006-07 Commissioner
0.58 2014-15 Senior Additional Commissioner
The Finance Act, 1994 Tax, Penalty 9.54 2009-10, 2012-13 to 2016-17 CESTAT
and Interest 0.38 2016-17 and Jun-17 Commissioner (Appeals)
Goods and Services Tax, Penalty and 0.02 2017-18 Superintendent
Tax Act Interest 91.67 2017-18 and 2018-19 Deputy Commissioner
20.31 2020-21 Joint Commissioner
Professional Tax Tax, Penalty and 0.09 2018-19 Assistant Commissioner
Interest
* Net of amount paid under protest

(viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the
tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on
clause 3(viii) of the Order is not applicable to the Company.
(ix) (a) The Company did not have any outstanding loans or borrowings or interest thereon due to any lender during the
year. Accordingly, the requirement to report on clause 3(ix)(a) of the Order is not applicable to the Company.
(b) The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.
(c) The Company did not have any term loans outstanding during the year hence, the requirement to report on
clause (ix)(c) of the Order is not applicable to the Company.
(d) The Company did not raise any funds during the year hence, the requirement to report on clause (ix)(d) of the
Order is not applicable to the Company.
(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from
any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.
(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies. Hence, the requirement to report on clause (ix)(f) of the Order is not applicable
to the Company.
(x) (a) The Company has not raised any money during the year by way of initial public offer / further public offer
(including debt instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to
the Company.
(b) The Company has not made any preferential allotment or private placement of shares / fully or partially or optionally
convertible debentures during the year under audit and hence, the requirement to report on clause 3(x)(b) of the
Order is not applicable to the Company.
256

(xi) (a) No fraud by the Company or no material fraud on the Company has been noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been filed
by cost auditor/ secretarial auditor or by us in Form ADT – 4 as prescribed under Rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government.
(c) We have taken into consideration the whistle blower complaints received by the Company during the year while
determining the nature, timing and extent of audit procedures.
(xii) The Company is not a nidhi Company as per the provisions of the Companies Act, 2013. Therefore, the requirement
to report on clause 3(xii)(a), (b) and (c) of the Order is not applicable to the Company.
(xiii) Transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where
applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable
accounting standards.
(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit have
been considered by us.
(xv) The Company has not entered into any non-cash transactions with its directors or persons connected with its directors
and hence requirement to report on clause 3(xv) of the Order is not applicable to the Company.
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to the
Company. Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to the Company.
(b) The Company is not engaged in any Non-Banking Financial or Housing Finance activities. Accordingly, the
requirement to report on clause (xvi)(b) of the Order is not applicable to the Company.
(c) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India.
Accordingly, the requirement to report on clause 3(xvi)(c) of the Order is not applicable to the Company.
(d) There is no Core Investment Company as a part of the Group, hence, the requirement to report on clause 3(xvi)(d)
of the Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current financial year and in the immediately preceding
financial year.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on
Clause 3(xviii) of the Order is not applicable to the Company.
(xix) On the basis of the financial ratios disclosed in note 48 to the financial statements, ageing and expected dates of realization
of financial assets and payment of financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting
the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as
on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet
as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an
assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the
date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period
of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx) (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a
fund specified in Schedule VII of the Companies Act (the Act), in compliance with second proviso to sub section 5
of section 135 of the Act. This matter has been disclosed in note 41(c) to the financial statements.
(b) There are no unspent amounts in respect of ongoing projects, that are required to be transferred to a special
account in compliance of provision of sub section (6) of section 135 of Companies Act. This matter has been
disclosed in note 41(d) to the financial statements.
per Anil Jobanputra
Partner
Date: May 08, 2023
257
Annexure 2 Independent Auditor’s Report

Annexure 2 to the Independent Auditor’s Report of even date on the standalone financial statements of Kansai
Nerolac Paints Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”)
We have audited the internal financial controls with reference to standalone financial statements of Kansai Nerolac Paints
Limited (“the Company”) as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the
Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance
of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Our responsibility is to express an opinion on the Company's internal financial controls with reference to these standalone
financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, as specified under
section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by ICAI. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls with reference to these standalone financial
statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial
controls with reference to standalone financial statements included obtaining an understanding of internal financial controls
with reference to these standalone financial statements, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the internal financial controls with reference to these standalone financial statements.
Meaning of Internal Financial Controls with Reference to these Standalone Financial Statements
A company's internal financial controls with reference to standalone financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference
to standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets
that could have a material effect on the financial statements.
258

Inherent Limitations of Internal Financial Controls with Reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls with reference to standalone financial statements, including
the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone
financial statements to future periods are subject to the risk that the internal financial control with reference to standalone
financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to standalone
financial statements and such internal financial controls with reference to standalone financial statements were operating
effectively as at March 31, 2023, based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

per Anil Jobanputra
Partner
Date: May 08, 2023
259
Standalone Balance Sheet as at 31 st

March 2023
` in Crores
Note As at 31st March, 2023 As at 31st March, 2022
ASSETS
Non-current Assets
Property, Plant and Equipment.......................................................... 2 1812.96 1701.27
Capital Work-in-progress................................................................... 3 112.62 223.88
Right of Use Assets (ROU)................................................................ 4 172.95 165.15
Investment Property ......................................................................... 5 0.13 0.18
Goodwill ............................................................................................ 0.20 0.20
Other Intangible Assets..................................................................... 6 8.70 9.35
2107.56 2100.03
Financial Assets:
Investments.................................................................................. 7 154.90 90.87
Other Financial Assets................................................................. 8 16.63 13.70
171.53 104.57
Non-current Tax Assets (Net)............................................................. 145.63 132.19
Other Non-current Assets.................................................................. 9 88.29 87.62
.Total Non-current Assets................................................ 2513.01 2424.41
Current Assets
Inventories......................................................................................... 10 1648.02 1531.54
Financial Assets:
Investments.................................................................................. 11 498.13 209.46
Trade Receivables....................................................................... 12 1117.15 965.43
Cash and Cash Equivalents......................................................... 13 90.22 66.44
Bank Balances other than Cash and Cash Equivalents............... 14 4.52 14.21
Other Financial Assets................................................................. 15 11.72 29.17
1721.74 1284.71
Other Current Assets......................................................................... 16 192.31 155.06
.Total Current Assets........................................................ 3562.07 2971.31
Asset held for sale 5A 0.05 —
.Total Assets..................................................................... 6075.13 5395.72
EQUITY AND LIABILITIES
Equity
Equity Share Capital.......................................................................... 17 53.89 53.89
Other Equity....................................................................................... 18 4553.49 4117.04
Total Equity...................................................................... 4607.38 4170.93
Liabilities
Non-current Liabilities
Financial Liabilities:
Lease Liabilities...................................................................... 19 93.78 85.93
Provisions..................................................................................... 20 21.13 22.27
Deferred Tax Liabilities (Net)........................................................ 21 102.25 95.55
.Total Non-current Liabilities........................................... 217.16 203.75
Current Liabilities
Lease Liabilities...................................................................... 22 25.49 22.95
Trade Payables....................................................................... 23
Total Outstanding dues of Micro Enterprises and Small
Enterprises........................................................................ 88.55 101.29
Total Outstanding dues of creditors other than Micro
Enterprises and Small Enterprises................................... 848.96 789.11
937.51 890.40
Other Financial Liabilities............................................................. 24 68.32 51.51
1031.32 964.86
Other Current Liabilities............................................................... 25 198.38 32.61
Provisions..................................................................................... 26 20.89 18.58
Current Tax Liabilities (Net).......................................................... 27 — 4.99
.Total Current Liabilities................................................... 1250.59 1021.04
.Total Liabilities................................................................. 1467.75 1224.79
.Total Equity and Liabilities............................................. 6075.13 5395.72
Significant Accounting Policies................................................................ 1
The notes referred to above form an integral part of Standalone Financial Statements.
As per our attached report of even date For and on behalf of the Board of Directors of Kansai Nerolac Paints Limited
For S R B C & CO LLP P. P. Shah Anuj Jain
Chartered Accountants Chairman Managing Director
ICAI Firm Registration No.: 324982E/E300003 DIN: 00066242 DIN: 08091524
per Anil Jobanputra Sonia Singh Bhaskar Bhat
Partner Director Director
Membership No.: 110759 DIN: 07108778 DIN: 00148778
P. D. Pai G. T. Govindarajan
CFO Company Secretary
ACS No. 8887
Mumbai, 8th May, 2023 Mumbai, 8th May, 2023
260
Standalone Statement of Profit and Loss for the year ended 31 st

March 2023
` in Crores
Year ended Year ended
Note 31st March, 2023 31st March, 2022
Income
Revenue from Operations....................................................................... 28 7081.02 5948.90
Other Income.......................................................................................... 29 30.83 32.86
Total Income.......................................................................................... 7111.85 5981.76
Expenses
Cost of Materials Consumed................................................................... 30 4595.16 4013.98
Purchases of Stock-in-trade.................................................................... 466.56 396.22
Changes in Inventories of Finished Goods, Work-in-progress and
Stock-in-trade.................................................................................................... 31 (106.38) (280.94)
Employee Benefits Expense................................................................... 32 333.84 312.37
Finance Cost........................................................................................... 33 9.73 9.87
Depreciation and Amortisation Expenses............................................... 34 164.63 153.82
Other Expenses...................................................................................... 35 997.95 859.93
Total Expenses...................................................................................... 6461.49 5465.25
Profit Before Exceptional Items and Tax.................................................. 650.36 516.51
Exceptional Item........................................................................................... — (11.39)
Profit Before Tax......................................................................................... 650.36 505.12
Tax Expense
Current Tax.............................................................................................. 21 159.71 132.35
Adjustment of tax relating to earlier periods . ......................................... 21 (2.43) —
Deferred Tax............................................................................................ 21 6.65 (1.56)
Total Tax Expense................................................................................. 163.93 130.79
Profit for the Year....................................................................................... 486.43 374.33
Other Comprehensive Income
(i) Items that will not be reclassified to Standalone Statement of
Proflt and Loss
(a) Remeasurement of Defined Benefit Liability..................................... 0.21 3.35
(b) Income tax relating to items that will not be reclassified to
Standalone Statement of Profit and Loss.......................................... (0.05) (0.84)
Total Other Comprehensive Income (net of taxes)............................ 0.16 2.51
Total Comprehensive Income for the Year......................................... 486.59 376.84
Earnings per Share (Face Value of ` 1 each):

Basic (in `).............................................................................................. 9.03 6.95
Diluted (in `)............................................................................................ 9.02 6.95
The notes referred to above form an integral part of Standalone Financial Statements
ACS No. 8887
261
Standalone Statement of Changes in Equity

for the year ended 31st March, 2023
A. Equity Share Capital

` in Crores
Balance as at 1st April, 2021......................................................................................................................................... 53.89
Changes in Equity Share Capital during 2021-2022................................................................................................. —
Balance as at the 31st March, 2022.............................................................................................................................. 53.89
Changes in Equity Share Capital during 2022-2023................................................................................................. —
B. Other Equity
` in Crores
Share Based
Capital Securities General Retained
Payment Total
Reserve Premium Reserve Earnings
Reserve
Balance as at 1st April, 2022................................ 0.30 12.56 487.67 3616.51 — 4117.04
Profit for the year................................................ — — — 486.43 — 486.43
Other Comprehensive Income:
Remeasurement of Employee Defined Benefit
Liability ........................................................... — — — 0.21 — 0.21
Deferred Tax on Remeasurement of
Employee Defined Benefit Liability................ — — — (0.05) — (0.05)
Total Other Comprehensive Income for the Year,
net of tax............................................................... — — — 0.16 — 0.16
Total Comprehensive Income for the Year........ — — — 486.59 — 486.59
Transaction with Owners in their Capacity
as Owners, recorded directly in equity:
Dividends......................................................... — — — (53.89) — (53.89)
Share based payment expense.......................... — — — — 3.75 3.75
— — — (53.89) 3.75 (50.14)
Balance as at the 31st March, 2023..................... 0.30 12.56 487.67 4049.21 3.75 4553.49
` in Crores
Share Based
Capital Securities General Retained
Payment Total
Reserve Premium Reserve Earnings
Reserve
Balance as at 1st April, 2021..................................... 0.30 12.56 487.67 3522.60 — 4023.13
Profit for the year...................................................... — — — 374.33 — 374.33
Liability................................................................ — — — 3.35 — 3.35
Employee Defined Benefit Liability.................... — — — (0.84) — (0.84)
Total Other Comprehensive Income for the Year, net
of tax — — — 2.51 — 2.51
Total Comprehensive Income for the Year............... — — — 376.84 — 376.84
Transaction with Owners in their Capacity as
Owners, recorded directly in equity:
Dividends............................................................ — — — (282.93) — (282.93)
— — — (282.93) — (282.93)
Balance as at 31st March, 2022................................ 0.30 12.56 487.67 3616.51 — 4117.04
ACS No. 8887
262
Standalone Statement of Cash Flow

` in Crores
Particulars Year ended Year ended

31st March, 2023 31st March, 2022
Cash Flow from Operating Activities

Profit Before Tax............................................................................................ 650.36 505.12
Adjustments for:
Depreciation and Amortisation Expenses................................................ 164.63 153.82

Fair Value (Gain)/Loss on Financial Instruments recognised through FVTPL (6.54) 0.61
Unrealised Foreign Exchange Gain (Net)................................................ (1.11) (0.95)
Profit on Sale of Current Investments (Net)............................................. (7.32) (14.29)
Interest Income........................................................................................ (1.32) (1.45)
Dividend Income...................................................................................... (2.79) (2.52)
Profit on Sale of Property, Plant and Equipment (Net) ........................... (0.22) (0.19)
Finance Cost........................................................................................... 9.73 9.87
Impairment loss allowance on trade receivables..................................... 0.51 2.36
Provision/liabilities no longer required written back................................. (0.66) (47.44)
Share based payment expense............................................................... 3.75 —
Gain from closure of lease liability........................................................... (0.73) —
Impairment of non-current investment..................................................... — 11.39
157.93 111.21
Operating Profit Before Working Capital Changes........................................ 808.29 616.33
(Increase) in Trade and Other Receivables.................................................. (203.52) (85.72)
(Increase) in Inventories............................................................................... (116.48) (419.73)
Increase in Trade Payables, Other Financial Liabilities and Provisions....... 73.61 98.83
(246.39) (406.62)
Cash Generated from Operations................................................................. 561.90 209.71
Direct Taxes Paid (Net of Refunds)............................................................... (175.71) (150.62)
Net Cash Flows generated from Operating Activities............................. 386.19 59.09
Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Other Intangible Assets
(including Adjustments on Account of Capital Work-in-progress, Capital
Creditors and Capital Advances) ................................................................ (111.30) (213.78)
Proceeds from Sale of Property, Plant and Equipment................................. 0.81 0.24
Advance received against Sale of Investment Property .............................. 162.11 —
Purchase of Investments in Subsidiaries..................................................... (61.89) —
Purchase of non-current Investments.......................................................... (2.14) (0.14)
Purchase of Current Investments................................................................. (2782.50) (3014.36)
Proceeds from Sale/Redemption of Current Investments............................. 2507.69 3486.64
Interest Received.......................................................................................... 1.32 1.45
Dividend Received........................................................................................ 2.79 2.52
Proceeds from/(Investments in) fixed deposits ............................................ 9.57 (11.11)
Net Cash Flows (used in)/generated from Investing Activities.............. (273.54) 251.46
263
Standalone Statement of Cash Flow

` in Crores

Cash Flows from Financing Activities

Repayment of Current Borrowings................................................................ — (8.34)
Payment of Lease Liabilities......................................................................... (34.98) (32.76)
Interest Paid.................................................................................................. — (0.38)
Dividend Paid................................................................................................ (53.89) (282.93)
Net Cash Flows (used in) Financing Activities........................................ (88.87) (324.41)
Net Increase/(Decrease) in Cash and Cash Equivalents ............................. 23.78 (13.86)
Cash and Cash Equivalents at beginning of the period, the components

being: (Refer Note 13)
Cash on Hand............................................................................................... 0.08 0.08
Cheques on hand......................................................................................... 23.34 16.78
Balances with Banks..................................................................................... 42.04 62.46
Effect of exchange rate fluctuation................................................................. 0.98 0.98
66.44 80.30
Cash and Cash Equivalents at end of the period, the components being:
(Refer Note 13)
Cash on Hand............................................................................................... 0.06 0.08
Cheques on hand.......................................................................................... 22.38 23.34
Balances with Banks ........................................................................................ 61.80 42.04
Deposit with Banks with less than 3 months maturity .................................... 5.00 —
Effect of exchange rate fluctuation................................................................ 0.98 0.98
90.22 66.44
Net Increase/(Decrease) as disclosed above................................................. 23.78 (13.86)
Debt Reconciliation Statement in accordance with Ind AS 7 ` in Crores

31 March, 2023
st
31 March, 2022
st
Opening Balances
Current Borrowings.............................................................................................................. — 8.34
Movements
Current Borrowings.............................................................................................................. — (8.34)
Closing Balances
Current Borrowings.............................................................................................................. — —
Notes:
(i) Figures in brackets are outflows/deductions.
(ii) The above Cash Flow Statement is prepared under the “Indirect Method” as set out in the Indian Accounting Standards (Ind AS-7) –
Statement of Cash Flows
ACS No. 8887
264
Notes to the Standalone Financial Statements

A. Corporate Information
Kansai Nerolac Paints Limited (the ‘Company’) is a public limited company domiciled in India and incorporated under the provisions of the
Companies Act. The Company’s shares are listed on National Stock Exchange and Bombay Stock Exchange. The registered office of the
Company is located at Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013. The Company is principally engaged in the
manufacturing of Paints.
Kansai Paint Co., Ltd., Japan is immediate and ultimate holding company of Kansai Nerolac Paints Limited and is based and listed in Japan.
Financial Statements of Kansai Paint Co., Ltd., Japan are available in public domain.
The Standalone Financial Statements for the year ended 31st March, 2023 have been reviewed by the Audit Committee and approved by the
Board of Directors at their meetings held on 8th May, 2023.
B. Basis of Preparation

1. Statement of compliance
The Standalone Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the
Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the ‘Act’) and other
relevant provisions of the Act as amended from time to time.
Details of the Company’s Accounting Policies are included in Note 1.
2. Functional and Presentation currency
The Standalone Financial Statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All
amounts have been rounded-off to the nearest crores, unless otherwise indicated.
3. Basis of measurement
The Standalone Financial Statements have been prepared on the historical cost basis except for investments in mutual funds, non-
trade equity shares, bonds and provision for employee defined benefit plans, which are measured at fair values at the end of each
reporting period.
4.Use of estimates and judgements
Critical accounting judgments and key sources of estimation uncertainty:
The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at
date of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates under different assumptions and conditions.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
(i) Critical Judgments
In the process of applying the Company’s accounting policies, management has made the following judgments, which have the
most significant effect on the amount recognised in the financial statements.
Discount rate used to determine the carrying amount of the Company’s defined benefit obligation.
In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government
bonds in currencies consistent with the currencies of the post-employment benefit obligation.
Contingencies and Commitments
In the normal course of business, contingent liabilities may arise from litigations and other claims against the Company. Where
the potential liabilities have a low probability of crystallising or are very difficult to quantify reliably, we treat them as contingent
liabilities. Such liabilities are disclosed in the notes but are not provided for in the financial statements. Although there can be no
assurance regarding the final outcome of the legal proceedings, we do not expect them to have a materially adverse impact on
our financial position or profitability.
(ii) Key Sources of Estimation Uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below:
Useful Lives of Property, Plant and Equipment
As described in Note 1(3)(c), the Company reviews the estimated useful lives and residual values of property, plant and equipment
at the end of each reporting period. During the current financial year, the management determined that there were no changes to
the useful lives and residual values of the property, plant and equipment.
Impairment loss allowance on trade receivables
The Company makes loss allowances for credit impaired debts based on an assessment of the recoverability of trade and
other receivables. The identification of credit impaired debts enquires use of judgments and estimates. Where the expectation
is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and credit
impaired debts expenses in the period in which such estimate has been changed.
265

B. Basis of Preparation (contd.)

4. Use of estimates and judgements (contd.)
Allowances for Inventories
Management reviews the inventory age listing on a periodic basis. This review involves comparison of the carrying value of the
aged inventory items with the respective net realizable value. The purpose is to ascertain whether an allowance is required to be
made in the financial statements for any obsolete and slow-moving items. Management is satisfied that adequate allowance for
obsolete and slow-moving inventories has been made in the financial statements.
Impairment of Investments in Subsidiaries
The carrying amount of the Company’s investments in subsidiaries including corporate guarantees provided by the Company
to the lenders of its subsidiaries are assessed at the end of each reporting date to determine whether there are any potential
indicators of impairment. If any such indication exists, then the Company estimates the recoverable amount of such investments.
The determination of recoverable amounts of the Company’s investments in subsidiaries involves significant judgements. Market
related information and estimates are used to determine the recoverable amount. Key assumptions on which management has
based its determination of recoverable amount includes projected sales volume, estimated long-term growth rates, weighted
average cost of capital, estimated operating margins, etc.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model,
which involve various judgements and assumptions.
Defined Benefit Plans
The costs and present value of the defined benefit gratuity plan and other long-term employee benefits are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
future. These include the determination of appropriate discount rate, salary escalation rate, expected rate of return on assets and
mortality rates. Due to the complexities involved in the valuation and its long-term nature, defined benefit plans are highly sensitive
to changes in these assumptions. All assumptions are reviewed at each reporting date and the same are disclosed in Note 38,
‘Employee benefits’.
Note 1: Significant Accounting Policies

1.Classification of Assets and Liabilities
Schedule III to the Act, requires assets and liabilities to be classified as either Current or Non-current.
(a) An asset shall be classified as current when it satisfies any of the following criteria:
(i) it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;
(ii) it is held primarily for the purpose of being traded;
(iii) it is expected to be realised within twelve months after the reporting date; or
(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting date.
(b) All assets other than current assets shall be classified as non-current.
(c) A liability shall be classified as current when it satisfies any of the following criteria:
(i) it is expected to be settled in the Company’s normal operating cycle;
(iii) it is due to be settled within twelve months after the reporting date; or
(iv) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
(d) All liabilities other than current liabilities shall be classified as non-current.
2. Operating Cycle
An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.
The Company has ascertained the operating cycle as twelve months for the purpose of current or non-current classification of assets
and liabilities.
3.
Property, Plant and Equipment
(a) Recognition and Measurement
An item of Property, Plant and Equipment that qualifies for recognition as an asset is initially measured at its cost and then carried
at the cost less accumulated depreciation and accumulated impairment, if any.
The cost of an item of Property, Plant and Equipment comprises its purchase price, including import duties and non-refundable
purchase taxes, after deducting trade discounts and rebates and any costs directly attributable to bringing the asset to the location
and condition necessary for it to be capable of operating in the manner intended by management. The initial estimate of the costs
of dismantling and removing the item and restoring the site on which it is located is included in the cost of an item of property, plant
and equipment.
266

Note 1: Significant Accounting Policies (contd.)

3. Property, Plant and Equipment (contd.)
The cost of a self-constructed item of Property, Plant and Equipment comprises the cost of materials and direct labor, any other
costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and
removing the item and restoring the site on which it is located.
Tangible Property, Plant and Equipment under construction are disclosed as Capital Work-in-progress. Item of Capital Work-
in-progress is carried at cost using the principles of valuation of item of property, plant and equipment till it is ready for use, the
manner in which intended by management.
(b) Subsequent Expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will
flow to the Company.
(c) Depreciation
The depreciable amount of an item of Property, Plant and Equipment is allocated on a systematic basis over its useful life. The
Company provides depreciation on the straight line method. The Company believes that straight line method reflects the pattern in
which the asset’s future economic benefits are expected to be consumed by the Company. Based on internal technical evaluation,
the management believes useful lives of the assets are appropriate. The depreciation method is reviewed at least at each financial
year-end and, if there has been a significant change in the expected pattern of consumption of the future economic benefits embodied
in the asset, the method is changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting
estimate in accordance with Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors.
Each part of an item of Property, Plant and Equipment with a cost that is significant in relation to the total cost of the item is
depreciated separately.
The depreciation charge for each period is recognised in the Standalone Statement of Profit and Loss unless it is included in the
carrying amount of another asset.
The residual value and the useful life of an asset is reviewed at least at each financial year-end and, if expectations differ
from previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Ind AS 8 –
Accounting Policies, Changes in Accounting Estimates and Errors. The estimated useful lives for the current and comparative
periods are as follows:
Useful Lives Useful Lives
Asset Class (in years) (in years)
– as per Companies Act, 2013 – as estimated by the Company
Buildings 30-60 30-60
Plant and Equipments 10-20 10-25
Furniture and Fixtures 10 10
Vehicles 10 10
Office Equipments 5 5
Computers 3-6 3-6
Assets for Scientific Research 10-20 20
Assets on Operating Lease NA 5
Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for use
(disposed off).
Depreciation charge for the year is displayed as depreciation on the face of Standalone Statement of Profit and Loss.
(d) Disposal
The carrying amount of an item of Property, Plant and Equipment is derecognised on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of Property, Plant and
Equipment is included in Standalone Statement of Profit and Loss when the item is derecognised.
4. Investment Property
Land or building held to earn rentals or for capital appreciation or both rather than for use in the production or supply of goods or
services or for administrative purposes; or sale in the ordinary course of business is recognised as Investment Property. Land held
for a currently undetermined future use is also recognised as Investment Property.
An investment property is measured initially at its cost. The cost of an investment property comprises its purchase price and any
directly attributable expenditure. After initial recognition, the Company carries the investment property at the cost less accumulated
depreciation and accumulated impairment, if any.
267


4. Investment Property (contd.)
(b) Depreciation
After initial recognition, the Company measures all of its Investment Property in accordance with Ind AS 16 – Property, Plant and
Equipment requirements for cost model. The depreciable amount of an item of Investment Property is allocated on a systematic
basis over its useful life. The Company provides depreciation on the straight line method. The Company believes that straight line
method reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Company. Based
on internal technical evaluation, the management believes useful lives of the assets are appropriate. The depreciation method is
reviewed at least at each financial year-end and, if there has been a significant change in the expected pattern of consumption
of the future economic benefits embodied in the asset, the method is changed to reflect the changed pattern. Such a change is
accounted for as a change in an accounting estimate in accordance with Ind AS 8 – Accounting Policies, Changes in Accounting
Estimates and Errors.
The depreciation charge for each period is generally recognised in the Standalone Statement of Profit and Loss.
Accounting Policies, Changes in Accounting Estimates and Errors. The estimated useful lives for the current and comparative

– as per Companies Act, 2013 – as estimated by the Company
(c) Fair Value

Fair value of investment property is based on a valuation by an independent valuer who holds a recognised and relevant
professional qualification and has recent experience in the location and category of the investment property being valued. The fair
value of investment property is disclosed in the Note 4.
(d) Gain or loss on Disposal
Any gain or loss on disposal of an Investment Property is recognised in the Standalone Statement of Profit and Loss.
5. Other Intangible Assets

An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are initially measured at
its cost and then carried at the cost less accumulated amortisation and accumulated impairment, if any.
Research and Development
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and
understanding. Expenditure incurred on research of an internal project is recognised as an expense in Standalone Statement of
Profit and Loss, when it is incurred.
Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially
improved materials, devices, products, processes, systems or services before the start of commercial production or use. An
intangible asset arising from development is recognised if, and only if, the following criteria are met:
(a) it is technically feasibile to complete the intangible asset so that it will be available for use or sale.
(b) the Company intends to complete the intangible asset and use or sell it.
(c) the Company has ability to use or sell the intangible asset.
(d) the Company can demonstrate how the intangible asset will generate probable future economic benefits.
(e) the Company has adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset.
(f) the Company has ability to measure reliably the expenditure attributable to the intangible asset during its development.
Expenditure on research activities is recognised in Standalone Statement of Profit and Loss as incurred.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which
it relates.All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in Standalone
Statement of Profit and Loss as incurred.
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5. Other Intangible Assets (contd.)
(c) Amortisation
The Company amortises Other Intangible Assets on the straight line method. The Company believes that straight line method
reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Company. The amortisation
method is reviewed at least at each financial year-end and, if there has been a significant change in the expected pattern of
consumption of the future economic benefits embodied in the asset, the method is changed to reflect the changed pattern. Such
a change is accounted for as a change in an accounting estimate in accordance with Ind AS 8 – Accounting Policies, Changes in
Accounting Estimates and Errors.
Accounting Policies, Changes in Accounting Estimates and Errors. The estimated useful lives as estimated by management are
as follows:
Useful Lives (in years)
Asset Class
– as estimated by the Company
Software 3
Customer Relationship 5
Brand and Technical Knowhow 5
Non-compete 5
6. Non-current assets or disposal group held for sale

Non-current assets, or disposal groups comprising assets and liabilities are classified as held for sale if it is highly probable that they
will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any
resultant loss on a disposal group is allocated first to goodwill, and then to remaining assets and liabilities on pro rata basis, except
that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, and biological assets, which
continue to be measured in accordance with the Company’s other accounting policies. Losses on initial classification as held for sale
and subsequent gains and losses on remeasurement are recognised in Standalone Statement of Profit and Loss.
Once assets classified as held-for-sale, then Property, Plant and Equipment, Investment Property and Other Intangible Assets are no
longer required to be depreciated or amortised.
7. Employee Benefits
(a) Short-term Employee Benefits:
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognised for the amount expected to be paid e.g., under short-term cash bonus, if the Company has a
present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount
of obligation can be estimated reliably.
(b) Post-Employment Benefits:
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity
and will have no legal or constructive obligation to pay further amounts.
(i) Provident and Family Pension Fund
The eligible employees of the Company are entitled to receive post employment benefits in respect of provident and family
pension fund, in which both the employees and the Company make monthly contributions at a specified percentage of
the employees’ eligible salary (currently 12% of employees’ eligible salary). The contributions are made to the Regional
Provident Fund Commissioner (RPFC) which are charged to the Standalone Statement of Profit and Loss as incurred.
In respect of contribution to RPFC, the Company has no further obligations beyond making the contribution, and hence, such
employee benefit plan is classified as Defined Contribution Plan. The Company’s contribution is recognised as an expense
in the Standalone Statement of Profit and Loss.
(ii) Superannuation
The eligible employees of the Company are entitled to receive post employment benefits in respect of superannuation fund
in which the Company makes annual contribution at a specified percentage of the employees’ eligible salary (currently 15%
of employees’ eligible salary). The contributions are made to the Life Insurance Corporation of India (LIC). Superannuation
is classified as Defined Contribution Plan as the Company has no further obligations beyond making the contribution. The
Company’s contribution is recognised as an expense in the Standalone Statement of Profit and Loss.
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation in
respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current
and prior periods, discounting that amount and deducting the fair value of any plan assets.
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7. Employee Benefits (contd.)
(b) Post-Employment Benefits (contd.):
The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method.
When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic
benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan (‘the asset
ceiling’). In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised in Other Comprehensive Income.
The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying
the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined
benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of
contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in
Standalone Statement of Profit and Loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service
(‘past service cost’ or ‘past service gain’) or the gain or loss on curtailment is recognised immediately in profit or loss. The
Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Gratuity
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides
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 to one month salary payable for each completed year of service or part thereof in excess of six months
depending upon category of employee. Vesting occurs upon completion of five years of service. The Company has obtained
insurance policies with the Life Insurance Corporation of India (LIC) and makes an annual contribution to LIC for amounts notified
by LIC. The Company accounts for gratuity benefits payable in future based on an independent external actuarial valuation
carried out at the end of the year using the projected unit credit method. Actuarial gains and losses are recognised as Other
Comprehensive Income.
Provident Fund Trust

In respect of contribution to the trust set up by the Company, since the Company is obligated to meet interest shortfall, if any, with
respect to covered employees, such employee benefit plan is classified as Defined Benefit Plan. Any obligation in this respect is
measured on the basis of independent actuarial valuation.
(c) Retirement Benefits to Executive Directors

The liability for special retirement benefit to the Executive Directors who became entitled prior to the discontinuation of the policy,
is recognised in the balance sheet at its present value of the defined benefit obligation at the end of the reporting period. The
defined benefit obligation is calculated annually by actuaries using the projected united credit method.
The present value of the said obligation is determined by discounting the estimated future cash outflows, using market yields of
government bonds that have tenure approximating the tenures of the related liability.
The interest expense is calculated by applying the discount rate to the defined benefit liability. The interest expense on the defined
benefit liability is recognised in the Standalone Statement of Profit and Loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in
the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Standalone
Statement of Changes in Equity and in the Standalone Balance Sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.
(d) Other Long-term Employee Benefits - Compensated Absences
The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to
accumulate leave subject to certain limits for future encashment/availment. The Company makes provision for compensated
absences based on an independent actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised
in the Standalone Statement of Profit and Loss.
(e) Share based Payments

Employees of the Company receive remuneration in the form of share-based payments in consideration of the services rendered.
Under the equity settled share based payment, the fair value on the grant date of the awards given to employees is recognised
as ‘employee benefit expenses’ with a corresponding increase in equity over the vesting period. The fair value of the options at
the grant date is calculated by an independent valuer basis Black Scholes model and Monte Carle model. At the end of each
reporting period, apart from the non-market vesting condition, the expense is reviewed and adjusted to reflect changes to the level
of options expected to vest. When the options are exercised, the Company issues fresh equity shares.
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8. Inventories
(a) Measurement of Inventory
The Company measures its inventories at the lower of cost and net realisable value.
(b) Cost of Inventories
The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories
to their present location and condition.
The costs of purchase of inventories comprise the purchase price, import duties and other taxes (other than those subsequently
recoverable by the entity from the tax authorities), and transport, handling and other costs directly attributable to the acquisition of
finished goods, materials and services. Trade discounts, rebates and other similar items are deducted in determining the costs of
purchase.
The costs of conversion of inventories include costs directly related to the units of production and a systematic allocation of fixed
and variable production overheads that are incurred in converting materials into finished goods.
Other costs are included in the cost of inventories only to the extent that they are incurred in bringing the inventories to their
present location and condition.
The cost of inventories is assigned by weighted average cost formula. The Company uses the same cost formula for all inventories
having a similar nature and use to the Company.
(c) Net realisable value
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale. Net realisable value is ascertained for each item of inventories with reference to
the selling prices of related finished products.
The practice of writing inventories down below cost to net realisable value is consistent with the view that assets should not be
carried in excess of amounts expected to be realised from their sale or use. Inventories are usually written down to net realisable
value item by item. Estimates of net realisable value of finished goods and stock-in-trade are based on the most reliable evidence
available at the time the estimates are made, of the amount the inventories are expected to realise. These estimates take
into consideration fluctuations of price or cost directly relating to events occurring after the end of the period to the extent that
such events confirm conditions existing at the end of the period. Materials and other supplies held for use in the production of
inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold
at or above cost. However, when a decline in the price of materials indicates that the cost of the finished products exceeds net
realisable value, the materials are written down to net realisable value.
Amount of any reversal of write-down of inventories shall be recognised as an expense as when the event occurs.
A new assessment is made of net realisable value in each subsequent period. When the circumstances that previously caused
inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realisable value
because of changed economic circumstances, the amount of the write-down is reversed. Amounts such reversed shall be
recognised as a reduction in the amount of inventories recognised as an expense in the period in which reversal occurs.
(d) Valuation of Spare parts, stand-by equipments and servicing equipments

Spare parts, stand-by equipment and servicing equipment are recognised as Property, Plant and Equipment if and only if it is
probable that future economic benefits associated with them will flow to the Company and their cost can be measured reliably.
Otherwise such items are classified and recognised as Inventory.
9. Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash equivalents are held for the purpose of
meeting short-term cash commitments rather than for investment or other purposes. For an investment to qualify as a cash equivalent it
must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value. Therefore, an investment
normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of acquisition. For the
purpose of Cash Flow Statement cash and cash equivalent includes bank overdrafts which are repayable on demand.
10. Government Grants

Government grants are assistance by government in the form of transfers of resources to the Company in return for past or future
compliance with certain conditions relating to the operating activities of the Company. Government grants are not be recognised until
there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised in Statement of Profit and Loss on a systematic basis over the periods in which the Company
recognises as expenses the related costs for which the grants are intended to compensate.
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11. Provisions and Contingent Liabilities
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.
Warranties
A provision for warranties is recognised when the underlying products or services are sold. The provision is based on technical
evaluation, historical warranty data and a weighting of all possible outcomes by their associated probabilities.
Restructuring
A provision for restructuring is recognised when the Company has approved a detailed formal restructuring plan, and the restructuring
either has commenced or has been announced publicly.
Onerous contracts
A contract is considered to be onerous when the expected economic benefits to be derived by the Company from the contract are
lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the
present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
Before such a provision is made, the Company recognises any impairment loss on the assets associated with that contract.
12. Revenue Recognition

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which the
Company expects to receive in exchange for those goods.
Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on
dispatch / delivery.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, rebates, scheme
allowances, price concessions, incentives, and returns, if any, as specified in the contracts with the customers. Revenue excludes
taxes collected from customers on behalf of the government. Accruals for discounts/incentives and returns are estimated (using the
most likely method) based on accumulated experience and underlying schemes and agreements with customers. Due to the short
nature of credit period given to customers, there is no financing component in the contract.
Interest Income
Interest income is recognised using the effective interest method as set out in Ind AS 109 – Financial Instruments: Recognition and
Measurement, when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount
of the revenue can be measured reliably. The effective interest method is a method of calculating the amortised cost of a financial asset
or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over
the relevant period.
Royalty Income
Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreement when it is probable that the
economic benefits associated with the transaction will flow to the Company and the amount of the revenue can be measured reliably.
Dividend Income
Dividend income is recognised when right to receive payment is established and it is probable that the economic benefits associated
with the transaction will flow to the Company and the amount of the revenue can be measured reliably.
13. Foreign Currency Transactions

Functional currency is the currency of the primary economic environment in which the Company operates whereas presentation
currency is the currency in which the financial statements are presented. Indian Rupee is the functional as well as presentation
currency for the Company.
A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign currency amount
the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
At the end of each reporting period, foreign currency monetary items are translated using the closing rate whereas non-monetary items
that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction;
and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when
the fair value was measured.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at
which they were translated on initial recognition during the period or in previous Financial Statements are recognised in the Standalone
Statement of Profit and Loss in the period in which they arise. When a gain or loss on a non-monetary item is recognised in Other
Comprehensive Income, any exchange component of that gain or loss is recognised in Other Comprehensive Income. Conversely,
when a gain or loss on a non-monetary item is recognised in Standalone Statement of Profit and Loss, any exchange component of
that gain or loss is recognised in Standalone Statement of Profit and Loss.
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14. Taxation
Income tax
Income tax comprises current tax and deferred tax expense. It is recognised in Standalone Statement of Profit and Loss except to the
extent that it relates to a business combination or to an item recognised directly in Equity or in Other Comprehensive Income.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected
to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws)
enacted or substantively enacted by the reporting date.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax is not recognised for:
a temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit or loss at the time of the transaction;
b taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they
can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore,
in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient
taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which
such deferred tax asset can be realised. Deferred tax assets – unrecognised or recognised, are reviewed at each reporting
date and are recognised/reduced to the extent that it is probable/no longer probable respectively that the related tax benefit will
be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled,
based on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at
the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle
current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
15. Lease
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low
value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use
the underlying assets.
(i) Right-of-use Assets (ROU Assets)
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful
lives of the assets, as follows:
Leasehold land 90 to 99 years
Buildings 2 to 10 years
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to
impairment. Refer to the accounting policies in note 19 Impairment of non-financial assets.
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15. Lease (contd.)
(ii) Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be
paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain
to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In
calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of
lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change
in the assessment of an option to purchase the underlying asset.
Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified
as financing cash flows.
(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e.,
those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option).
It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low
value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis
over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset
are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in
which they are earned.
16. Financial Instruments

(a) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and
financial liabilities are initially recognised when the Company becomes a party to the contractual terms of the instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item not at Fair Value through Profit and Loss
(FVTPL), transaction costs that are directly attributable to its acquisition or issue.
(b) Classification and subsequent measurement

Financial assets
On initial recognition, a financial asset is measured at
— amortised cost;
— Fair Value through Other Comprehensive Income (FVOCI) – debt investment;
— Fair Value through Other Comprehensive Income – equity investment; or
— FVTPL
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its
business model for managing financial assets.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
— the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
— the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
— the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subse-
quent changes in the investment’s fair value in OCI (designated as FVOCI – equity investment). This election is made on an
investment‑by‑investment basis.
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16. Financial Instruments (contd.)
(b) Classification and subsequent measurement (contd.)
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This
includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise.
Financial assets: Subsequent measurement and gains and losses
Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any
interest or dividend income, are recognised in Standalone Statement of Profit and Loss.
Financial assets at amortised These assets are subsequently measured at amortised cost using the effective interest
cost method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in Standalone Statement of Profit
and Loss. Any gain or loss on derecognition is recognised in Statement of Profit and Loss.
Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income under the effective
interest method, foreign exchange gains and losses and impairment are recognised in
Standalone Statement of Profit and Loss. Other net gains and losses are recognised in
OCI. On derecognition, gains and losses accumulated in OCI are reclassified to Standalone
Statement of Profit and Loss.
Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognised as income
in Standalone Statement of Profit and Loss unless the dividend clearly represents a recovery
of part of the cost of the investment. Other net gains and losses are recognised in OCI and
are not reclassified to Standalone Statement of Profit and Loss.
Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is
classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are
measured at fair value and net gains and losses, including any interest expense, are recognised in Statement of Profit and Loss.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognised in Standalone Statement of Profit and Loss. Any gain or loss on derecognition
is also recognised in Standalone Statementof Profit and Loss.
(c) Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or
it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks
and rewards of ownership and does not retain control of the financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or
substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.
Financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are
substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference
between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised
in Standalone Statement of Profit and Loss.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the
Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to
realise the asset and settle the liability simultaneously.
(e) Derivative Financial Instruments

The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risk. Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered and are
subsequently re-measured at fair value. Any changes therein are recognised in the statement of profit and loss.
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17. Borrowing Cost
The Company capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
as part of the cost of that asset. The Company recognises other borrowing costs as an expense in the period in which it incurs them.
Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds including exchange
differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
18. Earnings Per Share
Basic earnings per share

The Company calculates basic earnings per share amounts for profit or loss attributable to ordinary equity holders and, if presented,
profit or loss from continuing operations attributable to those equity holders.
Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders (the numerator) by the weighted
average number of ordinary shares outstanding (the denominator) during the period.
The weighted average number of ordinary shares outstanding during the period and for all periods presented shall be adjusted for
events, other than the conversion of potential ordinary shares, that have changed the number of ordinary shares outstanding without a
corresponding change in resources.
Diluted earnings per share

The Company calculates diluted earnings per share amounts for profit or loss attributable to ordinary equity holders and, if presented,
For the purpose of calculating diluted earnings per share, the Company adjusts profit or loss attributable to ordinary equity holders, and
the weighted average number of shares outstanding, for the effects of all dilutive potential ordinary shares, if any.
For the purpose of calculating diluted earnings per share, the weighted average number of ordinary shares calculated for calculating basic
earnings per share and adjusted the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares. Dilutive potential ordinary shares are deemed to have been converted into ordinary
shares at the beginning of the period or, if later, the date of the issue of the potential ordinary shares.
19. Impairment Loss

Impairment of Financial Assets
The Company recognises loss allowances for expected credit losses on:
— financial assets measured at amortised cost; and
— financial assets measured at FVOCI- debt investments.
At each reporting date, the Company assesses whether financial assets carried at amortised cost are credit‑impaired. A financial asset
is ‘credit impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset
have occurred.
In accordance with Ind AS 109 – Financial Instruments, the Company follows ‘simplified approach’ for recognition of impairment loss
allowance on trade receivables. The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based on lifetime expected credit loss at each reporting date, right from its initial
recognition.
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of
recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that
could generate sufficient cash flows to repay the amounts subject to the write‑off. However, financial assets that are written off could
still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.
Impairment of Non Financial Assets
An impairment loss is the amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.
The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposal and its value in use.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. Value in use is based on the estimated future cash flows, discounted to their present value using
a pre-tax discount rate.
The Company assesses at the end of each reporting period whether there is any indication that an asset is impaired. In assessing
whether there is any indication that an asset may be impaired, the Company considers External as well as Internal Source of Information.
If any such indication exists, the Company estimates the recoverable amount for the individual asset. If, and only if, the recoverable
amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An
impairment loss is recognised immediately in profit or loss, unless the asset is carried at revalued amount in accordance with another
Accounting Standards.
276


19. Impairment Loss (contd.)
If it is not possible to estimate the recoverable amount of the individual asset, the Company determines the recoverable amount of the
cash generating unit to which the asset belongs (the asset’s cash-generating unit). A cash-generating unit is the smallest identifiable
group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The
Company recognises impairment loss for a cash-generating unit if, and only if, the recoverable amount of the cash-generating unit is
less than the carrying amount of the cash-generating unit. The Company allocates impairment loss of cash-generating units first to the
carrying amount of goodwill allocated to the cash-generating units, if any, and then, to the other assets of the cash-generating units
pro rata on the basis of the carrying amount of each asset in the cash-generating unit. These reductions in carrying amounts shall be
treated as impairment losses on individual assets and recognised accordingly.
20. Measurement of fair values

A number of the Companies accounting policies and disclosures require the measurement of fair values, for both financial and non-
financial assets and liabilities.
The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team
that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly
to the Chief Financial Officer.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as
broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third
parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy
in which the valuations should be classified.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used
to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement
is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change
has occurred.
21. Business Combination

Business combinations arising from transfers or interests in entities that are under the control of the shareholders that controls the
Company are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented or, if later,
at the date that common control was established; for this purpose comparatives are revised, The assets and liabilities acquired are
recognised at their carrying amounts. The identity of the reserves is preserved and they appear in the standalone financial statements
of the Company in the same form in which they appeared in the standalone financial statements of the acquired entity. The difference,
if any, between the net assets acquired and cancellation of share capital of the acquired entity is transferred to other equity.
22. Investment in Subsidiaries

A subsidiary is an entity that is controlled by the Company.
The Company accounts for the investments in equity shares of subsidiaries at cost in accordance with Ind AS 27 – Separate Financial
Statements.
277

2. Property, Plant and Equipment ` in Crores
Gross Block Accumulated Depreciation Net Block
Description As at As at As at As at As at
1st April, Additions Deductions 31st March, 1st April, Additions Deductions 31st March, 31st March,
2022 2023 2022 2023 2023
Freehold Land ..................... 90.06 0.55 — 90.61 — — — — 90.61

(90.06) (—) (—) (90.06) (—) (—) (—) (—) (90.06)
Buildings............................... 866.77 82.46 — 949.23 191.81 27.10 — 218.91 730.32
(757.48) (109.29) (—) (866.77) (168.06) (23.75) (—) (191.81) (674.96)
Plant and Equipments.......... 1308.05 110.18 1.35 1416.88 518.69 63.19 0.88 581.00 835.88
(1249.42) (59.53) (0.90) (1308.05) (461.04) (58.48) (0.83) (518.69) (789.36)
Furniture and Fixtures.......... 22.67 0.47 — 23.14 17.66 0.91 — 18.57 4.57
(22.12) (0.56) (0.01) (22.67) (16.75) (0.92) (0.01) (17.66) (5.01)
Vehicles................................ 1.06 0.37 0.19 1.24 0.76 0.05 0.19 0.62 0.62
(1.32) (0.11) (0.37) (1.06) (1.02) (0.08) (0.34) (0.76) (0.30)
Office Equipments................ 15.19 0.74 — 15.93 13.19 0.89 — 14.08 1.85
(14.41) (0.79) (0.01) (15.19) (12.29) (0.91) (0.01) (13.19) (2.00)
Computers............................. 52.66 6.43 0.01 59.08 41.05 4.30 — 45.35 13.73

(51.31) (8.05) (6.70) (52.66) (43.94) (3.81) (6.70) (41.05) (11.61)
Assets for Scientific 78.86 0.87 0.12 79.61 23.59 3.07 0.01 26.65 52.96
Research*............................. (78.27) (0.59) (—) (78.86) (20.53) (3.06) (—) (23.59) (55.27)
Assets given on 376.05 40.47 6.55 409.97 303.35 30.75 6.55 327.55 82.42
Operating Lease
(Refer Note 2.5).................... (351.79) (31.53) (7.27) (376.05) (281.55) (29.07) (7.27) (303.35) (72.70)
Total Tangible Assets......... 2811.37 242.54 8.22 3045.69 1110.10 130.26 7.63 1232.73 1812.96
(2616.18) (210.45) (15.26) (2811.37) (1005.18) (120.08) (15.16) (1110.10) (1701.27)
* Net block includes Buildings ₹ 24.14 Crores (2021-2022 ₹ 24.58 Crores), Plant and Equipment ₹ 25.20 Crores (2021-2022
₹ 26.94 Crores) and Furniture and Fixtures ₹ 3.62 Crores (2021-2022 ₹ 3.75 Crores).
2.1. Figures in the brackets are the corresponding figures in respect of the previous year.
2.2. No items of Property, Plant and Equipment were pledged as security for liabilities during any part of the current and comparative period.
2.3. Nil amount of borrowing costs is capitalised during the current and comparative period.
2.4. Nil amount of impairment loss is recognised during the current and comparative period.
2.5 The Company has given Colour Dispenser Machines on operating lease to its dealers. The Company enters into three years cancellable
lease agreements. However, the corresponding lease rentals may be receivable for a shorter period or may be waived off. The
minimum aggregate lease payments to be received in future is considered as ₹ Nil. Accordingly, the disclosure of the present value of
minimum lease payments receivable at the Balance Sheet date is not made.
278

3. Capital work-in-progress
₹ in Crores
Year Opening Additions Deletions Closing
2022-2023............................................................................. 223.88 131.28 242.54 112.62

2021-2022............................................................................. 205.83 228.50 210.45 223.88
Capital work-in-progress Ageing Schedule

As at 31st March, 2023 ₹ in Crores
Amount in CWIP for a period of
Particulars Less than 1 year More than 3 Total
1-2 years 2-3 years years
Projects in progress............................... 57.83 43.91 6.32 4.56 112.62
Projects temporarily suspended............ — — — — —
Total ..................................................... 57.83 43.91 6.32 4.56 112.62
As at 31st March, 2022 ₹ in Crores

Amount in CWIP for a period of
Particulars Total
Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress............................... 78.78 44.00 75.61 17.45 215.84
Projects temporarily suspended*........... 1.03 4.35 1.66 1.00 8.04

Total . .................................................... 79.81 48.35 77.27 18.45 223.88
Project completion is overdue or has exceeded its cost compared to its original plan : Not Applicable
* Vizag project has been temporarily suspended.
4. Right of Use Assets (ROU) ` in Crores
Gross Block Accumulated Amortisation Net Block

2022 2023 2022 2023 2023
Leasehold Land........................ 75.50 — — 75.50 6.37 0.83 — 7.20 68.30
(75.50) (—) (—) (75.50) (5.53) (0.84) (—) (6.37) (69.13)
Buildings................................... 146.44 38.39 8.65 176.18 50.42 27.74 6.63 71.53 104.65
(108.52) (43.75) (5.83) (146.44) (27.94) (26.66) (4.18) (50.42) (96.02)
Total Right of Use Assets

(ROU) ...................................... 221.94 38.39 8.65 251.68 56.79 28.57 6.63 78.73 172.95
(184.02) (43.75) (5.83) (221.94) (33.47) (27.50) (4.18) (56.79) (165.15)
4.2. Nil amount of borrowing costs is capitalised during the current and comparative periods.
4.3. Nil amount of impairment loss is recognised during the current and comparative periods.
4.4. The title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements
are duly executed in favour of the lessee) included in Right of use assets (ROU), which are not held in the name of the
Company are as indicated below:
Description of Property Gross Held in name of Whether Period held Reason for not being held in the
carrying value promoter, – indicate name of Company
(₹ in Crores) director or range, where
their relative appropriate
or employee
Leasehold land at Goa 0.30 Marpol Private No Less than 2 year These properties were acquired
Limited pursuant to a scheme of amalgamation
Leasehold land at Vapi 0.12 Perma Construction No Less than 2 year and continue to be registered in the
Aids Private Limited name of amalgamating Companies.
However, the deed of merger has been
registered by the Company.
279

` in Crores
1st April, Additions Deductions* 31st March, 1st April, Additions Deductions* 31st March, 31st March,
2022 2023 2022 2023 2023
Freehold Land ........................ 0.07 — 0.04 0.03 — — — — 0.03

(0.07) (—) (—) (0.07) (—) (—) (—) (—) (0.07)
Leasehold Land....................... 0.01 — — 0.01 — — — — 0.01
(0.01) (—) (—) (0.01) (—) (—) (—) (—) (0.01)
Buildings . ............................... 3.39 — 1.16 2.23 3.29 — 1.15 2.14 0.09
(3.39) (—) (—) (3.39) (3.29) (—) (—) (3.29) (0.10)
Total Investment Property.... 3.47 — 1.20 2.27 3.29 — 1.15 2.14 0.13
(3.47) (—) (—) (3.47) (3.29) (—) (—) (3.29) (0.18)
5.4. During the financial year, no rental income was generated from the investment properties whereas direct operating expenses
of ₹ 0.21 Crores (2021-2022 ₹ 0.26 Crores) were incurred and recorded as expense in the Standalone Statement of Profit
and Loss.
5.5. Total fair value of Investment Property is ₹ 729.88 Crores (2021-2022 ₹ 1354.98 Crores).
5.6. *Deduction represent transfer of asset value from investment property to asset held for sale head.
Fair Value Hierarchy

he fair value of investment property has been determined by external independent property valuers, having appropriate recognised
T
professional qualification and recent experience in the location and category of the property being valued.
The fair value measurement for all of the investment property has been categorised as a level 3 fair value based on the inputs to the
valuation techniques used.
Description of Valuation Technique used

he Company obtains Independent Valuations of its investment property. The fair value of the investment property have been derived
T
using the Direct Comparison Method. The direct comparison approach involves a comparison of the investment property to similar
properties that have actually been sold in arms-length distance from investment property or are offered for sale in the same region.
This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties
in an open and competitive market, and is particularly useful in estimating the value of the land and properties that are typically
traded on a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that the comparable instances
are located in close proximity to the investment property; these instances have been assessed for their locational comparative
advantages and disadvantages while arriving at the indicative price assessment for investment property.
5A. Asset held for Sale

` in Crores
2022-2023 2021-2022
Freehold Land ............................................................................................................ 0.04 —
Buildings ..................................................................................................................... 0.01 —
Total ............................................................................................................................ 0.05 —
uring the year, The Company has entered into Agreement to Sell with Shoden Developers Private Limited, a group company of
D
House of Hiranandani group (hereinafter referred as the “Purchaser”) for the Company’s investment property at Kavesar, Thane for
the total consideration of ₹ 655 Crores against which the Company has received the advance of ₹ 162.11 Crores from the purchaser
which has been accounted as Advance received against Sale of Investment Property under Note 25 - Other Current Liabilities. The
sale is subject to completion of procedures and approvals as may be necessary in this regard. The transaction will be recognised
as revenue during the period in which procedures and approvals for the said property gets completed.
280


` in Crores
2022 2023 2022 2023 2023
Software .............................................. 19.93 1.15 — 21.08 18.95 0.55 — 19.50 1.58

(19.15) (0.78) (—) (19.93) (17.93) (1.02) (—) (18.95) (0.98)
Customer Relationship ........................ 5.45 — — 5.45 3.27 1.09 — 4.36 1.09
(5.45) (—) (—) (5.45) (2.18) (1.09) (—) (3.27) (2.18)
Brand and Technical Knowhow............ 14.38 4.00 — 18.38 10.21 2.90 — 13.11 5.27
(14.38) (—) (—) (14.38) (7.33) (2.88) (—) (10.21) (4.17)
Non-compete . ..................................... 6.28 — — 6.28 4.26 1.26 — 5.52 0.76
(6.28) (—) (—) (6.28) (3.01) (1.25) (—) (4.26) (2.02)
Total Other Intangible Assets........... 46.04 5.15 — 51.19 36.69 5.80 — 42.49 8.70
(45.26) (0.78) (—) (46.04) (30.45) (6.24) (—) (36.69) (9.35)
7. Non-current Investments
` in Crores
As at As at
Investments in Equity Instruments:

i. Subsidiary Companies at Cost (Unquoted)
1. KNP Japan Private Limited...................................... 7.87 7.87
8,84,000 Equity Shares of NPR 100 each fully
paid up (8,84,000 Equity Shares of NPR 100 each
fully paid up)
2. Kansai Paints Lanka (Private) Limited.................... 46.60 35.61
18,49,99,998 Equity Shares of LKR 10 each fully
paid up (10,39,99,998 Equity Shares of LKR 10
each fully paid up)
Less: Impairment loss . ......................................... (22.21) (22.21)
24.39 13.40
3. Kansai Nerolac Paints (Bangladesh) Limited......... 70.41 56.51
6,71,00,000 Equity Shares of BDT 10 each fully
paid up (5,06,00,000 Equity Shares of BDT 10
each fully paid up)
4. Nerofix Private Limited........................................... 49.00 12.00
200,00,000 Equity Shares of ₹ 10 each fully paid
up (120,00,000 Equity Shares of ₹ 10 each fully
paid up)
ii. Others at FVTPL
1. National Thermal Power Corporation Ltd. 0.85 0.66
(Quoted).................................................................
48,628 Equity Shares of ₹ 10 each fully paid up
(48,628 Equity Shares of ₹ 10 each fully paid up)
2. Paints and Coatings Skill Council (Unquoted)........ 0.02 0.02
10 Equity Shares of ₹ 25,000 each fully paid up
(10 Equity Shares of ₹ 25,000 each fully paid up)
3. Beta Wind Farm Pvt Ltd. (Unquoted)..................... 0.36 0.36
1,90,741 Equity Shares of ₹ 10 each fully paid up
(1,90,741 Equity Shares of ₹ 10 each fully paid up)
4. Amplus RJ Solar Private Limited (Unquoted)......... 1.96 —
19,55,000 Equity Shares of ₹ 10 each fully paid up
281

7. Non-current Investments (contd.)

` in Crores
As at As at
Investments in Debenture:
1. 8.49% National Thermal Power Corporation 0.04 0.05
(NTPC) (Quoted)....................................................
40,524 Non Convertible Debenture of ₹ 10 each
fully paid up (40,524 Non Convertible Debenture
of ₹ 10 each fully paid up)
Total Non-current Investments 154.90 90.87
Aggregate book value of quoted investments.............. 0.89 0.71
Aggregate market value of quoted investments........... 0.89 0.71
Aggregate amount of unquoted investments............... 176.22 112.37
Aggregate amount of impairment in value of
investments......................................................................... 22.21 22.21
8. Other Financial Assets

` in Crores
As at As at
Unsecured and Considered Good:
Security Deposits................................................................................................... 16.63 13.70
16.63 13.70
9. Other non-current assets

` in Crores
As at As at
Capital Advances................................................................................................... 28.27 56.16
Prepaid Expenses.................................................................................................. 31.44 8.25
Balances with Indirect Tax Authorities.................................................................... 28.58 23.21
88.29 87.62
10. Inventories
` in Crores
As at As at
Raw Materials . .......................................................................................................... 487.38 478.50
Packing Materials....................................................................................................... 18.17 18.15
Work-in-progress........................................................................................................ 142.09 141.30
Finished Goods.......................................................................................................... 899.28 807.90
Stock-in-trade............................................................................................................. 88.87 74.66
Stores and Spares...................................................................................................... 12.23 11.03
1648.02 1531.54
Nil amount of inventories were written down to net realisable value during the current and comparable period. Similarly, Nil amount
of reversal of write down was accounted during the current and comparable periods.
Cost of inventory recognised as an expense during the year as per note 30 to 31.
282

11. Current Investments

` in Crores
As at As at
(A) Investments in Bonds at FVTPL (Quoted):......................................................... 11.53 9.52
(B) Mutual Funds at FVTPL (Unquoted):.................................................................. 486.60 199.94
Total Current Investment (A + B)................................................... 498.13 209.46
Aggregate book value of quoted investments................................... 11.53 9.52
Aggregate market value of quoted investments............................... 11.53 9.52
Aggregate amount of unquoted investments.................................... 486.60 199.94
Aggregate amount of impairment in value of investments................ Nil Nil
12. Trade Receivables

` in Crores
As at As at
Secured, Considered Good......................................................... — —
Unsecured, Considered Good*................................................... 1117.15 965.43
Significant increase in Credit Risk .............................................. — —
Credit Impaired............................................................................ 35.73 35.22
Loss Allowance............................................................................ (35.73) (35.22)
— —
1117.15 965.43
* R
eceivable from subsidiary company, in which director of
the Company is a director
KNP Japan Private Limited.......................................................... 3.47 1.97
Kansai Paints Lanka (Private) Limited........................................ 8.37 0.62
Kansai Nerolac Paints (Bangladesh) Limited 8.48 5.35
Nerofix Private Limited................................................................ 1.32 0.56
Trade Receivables Ageing Schedule

As at 31st March 2023 ` in Crores
Outstanding for following periods from due date of payment
Particulars Not Due Less than 6 months - 1-2 2-3 More than Total
6 months 1 year years years 3 years
(i) Undisputed Trade receivables – considered good... 942.78 141.58 18.17 9.12 2.21 3.29 1,117.15
(ii) Undisputed Trade Receivables – which have
significant increase in credit risk.............................. — — — — — — —
(iii) Undisputed Trade Receivables – credit impaired.... — — — — — — —
(iv) Disputed Trade Receivables considered good........ — — — — — — —
(v) Disputed Trade Receivables – which have
significant increase in credit risk.............................. — — — — — — —
(vi) Disputed Trade Receivables – credit impaired . ..... — — 1.45 5.88 4.83 23.57 35.73
As at 31st March 2022 ` in Crores

(i) Undisputed Trade receivables – considered good... 807.73 135.28 14.01 4.67 1.86 1.89 965.43
(ii) Undisputed Trade Receivables – which have
significant increase in credit risk............................... — — — — — — —
(iii) Undisputed Trade Receivables – credit impaired..... — — — — — — —
(iv) Disputed Trade Receivables considered good............... — — — — — — —
(v) Disputed Trade Receivables – which have
significant increase in credit risk............................... — — — — — — —
(vi) Disputed Trade Receivables – credit impaired . ...... — — 2.59 6.05 4.56 22.02 35.22
283

13. Cash and Cash equivalents

` in Crores
As at As at
Cash on hand............................................................................................................. 0.06 0.08
Cheques on hand....................................................................................................... 22.38 23.34
Banks balances.......................................................................................................... 62.78 43.02
Fixed Deposit with Bank with less than 3 month maturity ......................................... 5.00 —
90.22 66.44
14. Bank Balance other than Cash and cash equivalents

` in Crores
As at As at
Unpaid Dividend Accounts....................................................................................... 2.34 2.46
Fixed Deposit with Bank with more than 3 months but less than 12 month maturity..... 2.18 11.75
4.52 14.21
15. Other Current Financial Assets

` in Crores
As at As at
Security Deposits.................................................................................................. 6.89 7.09
GST Incentive Receivable..................................................................................... 1.35 9.86
Other Receivable*................................................................................................. 3.48 12.22
11.72 29.17
*
Includes ₹ 2.62 Crores (2021-2022 ₹ 2.36 Crores) receivable from subsidiary company – KNP Japan Private Limited, private
company in which director of the Company is a director
16. Other Current Assets

` in Crores
As at As at
Balances with Indirect Tax Authorities . ................................................................ 101.45 80.37
Trade Advances.................................................................................................... 52.96 53.35
Prepaid Expenses................................................................................................. 32.60 11.40
Other Receivable.................................................................................................. 5.30 9.94
192.31 155.06
17. Share Capital

As at As at
1. Authorised Share Capital (` in Crores)................................................... 66.50 66.50
Par Value per Share (`)........................................................................... 1.00 1.00
Number of Equity Shares........................................................................ 66,50,00,000 66,50,00,000
2. Issued, Subscribed and Fully Paid up (₹ in Crores)................................ 53.89 53.89
Par Value per Share (`)........................................................................... 1.00 1.00
Number of Equity Shares........................................................................ 53,89,19,720 53,89,19,720
284

17. Share Capital (contd.)

As at As at
3. Details of Shareholders holding more than 5% of shares:
% No. of % No. of
Shares Shares
Holding Company:
Kansai Paint Co., Ltd., Japan.............................................................. 74.99 40,41,35,898 74.99 40,41,35,898
4. Aggregated number of bonus share issued during the period of five years
immediately preceding the reporting date by capitalisation of security
premium reserve ...................................................................................... Nil Nil
5. The Company has issued one class of shares, i.e. equity shares,
which enjoys similar rights in respect of voting, payment of dividend
and repayment of capital. On winding up of the Company, the holders
of equity shares will be entitled to receive the residual assets of the
Company, remaining after distribution of all preferential amounts in
proportion to the number of equity shares held.
6. Reconciliation of the number of shares outstanding:
Number of shares at the beginning of the year......................................... 53,89,19,720 53,89,19,720
Issued during the year.............................................................................. — —
Number of shares at the end of the year.................................................. 53,89,19,720 53,89,19,720
7. Disclosure of Shareholding of Promoters:
Name of Promoter: Kansai Paint Co., Ltd., Japan
Details of shares held by promoters:
No. of shares at the beginning of the year................................................ 40,41,35,898 40,41,35,898
Change during the year............................................................................ — —
No. of shares at the end of the year.......................................................... 40,41,35,898 40,41,35,898
% of Total Shares...................................................................................... 74.99 74.99
% change during the year........................................................................ — —
8. Capital Management:
For the purpose of the Company’s capital management, capital includes
issued equity share capital and all other equity reserves attributable
to the equity holders of the Company. The Company’s policy is to
maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business.
Management monitors the return on capital, as well as the levels of
dividends to equity shareholders. The Company is not subject to any
externally imposed capital requirements.
18. Other Equity

` in Crores
Share
Capital Securities General Retained Based
Total
Reserve Premium Reserve Earnings Payment
Reserve
Balance as at 1st April, 2022............................. 0.30 12.56 487.67 3616.51 — 4,117.04
Profit for the year............................................. — — — 486.43 — 486.43
Liability ................................................................. — — — 0.21 — 0.21
Deferred Tax on Remeasurement of Employee
Defined Benefit Liability................................... — — — (0.05) — (0.05)
Total Other Comprehensive Income for the
period, net of tax.. ...................................... — — — 0.16 — 0.16
Total Comprehensive Income for the Year — — — 486.59 — 486.59
Dividends...................................................... — — — (53.89) — (53.89)
Share based Payment Expense...................... — — — — 3.75 3.75
— — — (53.89) 3.75 (50.14)
Balance as at 31st March, 2023........................ 0.30 12.56 487.67 4049.21 3.75 4553.49
285

18. Other Equity (contd.)

` in Crores
Capital Securities General Retained Share Based Total
Reserve Premium Reserve Earnings Payment
Reserve
Balance as at 1st April, 2021.............................. 0.30 12.56 487.67 3522.60 — 4023.13
Profit for the year............................................... — — — 374.33 — 374.33
Remeasurement of Employee Defined
Benefit Liability............................................. — — — 3.35 — 3.35
Employee Defined Benefit Liability............ — — — (0.84) — (0.84)
Total Other Comprehensive Income for the Year, — — — 2.51 — 2.51
net of tax
Total Comprehensive Income for the Year........ — — — 376.84 — 376.84
Dividends..................................................... — — — (282.93) — (282.93)
— — — (282.93) — (282.93)
Balance as at 31st March, 2022......................... 0.30 12.56 487.67 3616.51 — 4117.04
Analysis of Accumulated OCI, Net of Tax

` in Crores
Remeasurement of Defined Benefit Liability/(Asset) 31 March, 2023
st
31 March, 2022
st
Opening Balance...................................................................................................... (8.07) (10.58)

Remeasurement of Employee Defined Benefit Liability, net of tax........................... 0.16 2.51
Closing Balance ...................................................................................................... (7.91) (8.07)
Capital Reserve
Capital reserve includes profit on re-issue of forfeited shares.
Securities Premium
Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the
Companies Act, 2013.
General Reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in
a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the
total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer
a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the
general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
Share based Payment Reserve
This represents the fair value of the stock options granted by the Company under the Restricted Stock Unit Plan (‘RSU 2022 Plan’)
accumulated over the vesting period. The reserve will be utilised on exercise of the options.
Dividend
For the year 2021-2022, the Directors had recommended and Shareholders had approved a final dividend of 100% (₹ 1 per share),
which has been accounted in current year. In addition, the Company had declared interim dividend of 125% (₹ 1.25 per share) paid
on November 22, 2021.
The Board has recommended final dividend of 270% (₹ 2.70 per share) for the financial year ended March 31, 2023 as compared
to total dividend of 225% (₹ 2.25 per share) declared last year.
The dividend proposed by the Directors is subject to approval of Shareholders at the annual general meeting. The proposed dividend of
₹ 145.50 Crores (2021-2022 ₹ 53.89 Crores) have not been recognised as liabilities.
Issue of Bonus Shares
The Board has considered and approved issue of 1 bonus equity shares of face value of ₹ 1 each against 2 equity share of the face
value of ₹ 1 each. This is subject to shareholder’s approval. The approval of the Shareholders for the issue of Bonus Shares will be
obtained by means of postal ballot.
286

19. Lease Liabilities

` in Crores
As at As at
Non-current Lease Liabilities................................................................................... 93.78 85.93
93.78 85.93
The maturity analysis of lease liabilities is disclosed in Note 44.
20. Provisions
` in Crores
As at As at
Provision for Retirement Benefits to Executive Director (Refer Note 39)................. 21.13 22.27
21.13 22.27
21. Income Taxes

` in Crores
A. The major components of income tax expense for the year are as under:
(i) Income tax recognised in the Standalone Statement of Profit and Loss
Current tax:
In respect of current year........................................................................................... 159.71 132.35
In respect of earlier years........................................................................................... (2.43) —
Deferred tax:
In respect of current year........................................................................................... 6.65 (1.56)
Income tax expense recognised in the Standalone Statement of Profit and

Loss........................................................................................................................... 163.93 130.79
(ii) Income tax expense recognised in OCI
Deferred tax expense on remeasurements of defined benefit plans.......................... (0.05) (0.84)
Income tax expense recognised in OCI.................................................................
(0.05) (0.84)
B. Reconciliation of tax expense and the accounting profit for the year is as under:
Profit before tax................................................................................................................. 650.36 505.12
Income tax expense calculated at 25.17% (2021-2022 @ 25.17%) ................................ 163.70 127.14
Tax effect on non-deductible expenses............................................................................. 3.34 9.79
Effect of Income that is exempted from tax....................................................................... (0.15) (0.28)
Others............................................................................................................................... (2.96) (5.86)
Total.................................................................................................................................. 163.93 130.79
Tax expense as per Standalone Statement of Profit and Loss................................... 163.93 130.79
The tax rate used for reconciliation above is the corporate tax rate of 25.17% (2021-2022: 25.17%) payable by corporate entities in India
on taxable profits under Indian tax law.
287

21. Income Taxes (contd.)

C. The major components of deferred tax (liabilities) / assets arising on account of timing differences are as follows:
` in Crores
Particulars Balance Statement OCI Balance Balance Statement OCI Balance
Sheet of Profit Sheet Sheet of Profit Sheet
and Loss and Loss
01.04.2022 2022-2023 2022-2023 31.03.2023 01.04.2021 2021-2022 2021-2022 31.03.2022
Difference between written down value / capital work-in-
progress of Property, Plant and Equipment as per the books
of accounts and Income Tax Act,1961.................................. (134.51) (7.45) — (141.96) (130.52) (3.99) — (134.51)
Tax adjustment on account on indexation of freehold land. 19.47 1.78 — 21.25 17.44 2.03 — 19.47
Expense claimed for tax purpose on payment basis.............. 6.01 (1.13) — 4.88 5.64 0.37 — 6.01
Provision for Loss Allowance.............................................. 8.89 0.86 — 9.75 7.86 1.03 — 8.89
Remeasurement benefit of the defined benefit plans
through OCI........................................................................ 2.03 — (0.05) 1.98 2.87 — (0.84) 2.03
Difference in carrying value and tax base of investments
measured through FVTPL........................................................ (0.57) (1.34) — (1.91) (1.75) 1.18 — (0.57)
Difference in Right-of-use asset and lease liabilities.......... 3.13 0.63 — 3.76 2.19 0.94 — 3.13
Deferred tax (expense)/income
Net Deferred tax liabilities.................................................. (95.55) (6.65) (0.05) (102.25) (96.27) 1.56 (0.84) (95.55)
22. Lease Liabilities

` in Crores
As at As at
Lease Liabilities - Current............................................................................................ 25.49 22.95
25.49 22.95
23. Trade Payables

` in Crores
As at As at
Trade Payables
Total Outstanding dues of Micro Enterprises and Small Enterprises (Refer Note 43)... 88.55 101.29
Total Outstanding dues of creditors other than Micro Enterprises and Small
Enterprises*............................................................................................................ 848.96 789.11
937.51 890.40
*Includes Acceptances ₹ 54.31 Crores (2021-2022 ₹ Nil)
Trade Payables Ageing Schedule

As at 31st March, 2023 ` in Crores
Particulars Unbilled Not Due Less than 1-2 2-3 More than Total
1 year years years 3 years
(i) MSME...................................... — 88.55 — — — — 88.55
(ii) Others ..................................... 149.79 559.56 139.07 0.16 0.36 0.02 848.96
(iii) Disputed dues – MSME .......... — — — — — — —
(iv) Disputed dues – Others .......... — — — — — — —
As at 31st March, 2022 ` in Crores
Particulars Unbilled Not Due Less than 1-2 2-3 More than Total
(i) MSME...................................... — 101.29 — — — — 101.29
(ii) Others...................................... 180.43 234.90 373.31 0.28 0.16 0.03 789.11
(iii) Disputed dues – MSME........... — — — — — — —
(iv) Disputed dues – Others........... — — — — — — —
288

24. Other Financial Liabilities

` in Crores
As at As at
Unclaimed/Unpaid Dividends*...................................................................................... 2.34 2.46
Trade Deposits............................................................................................................. 48.77 29.08
Payables for Capital Goods@ (Refer Note 43)............................................................ 17.21 19.97
68.32 51.51
* There are no amounts due and outstanding to be transfered to Investor Education and Protection Fund.
@ Includes Outstanding dues of Micro Enterprises and Small Enterprises ₹ 3.96 Crores (2021-2022 ₹ 3.73 Crores)
25. Other Current Liabilities

` in Crores
As at As at
Statutory Obligations*.................................................................................................. 19.23 17.63
Trade Receivables with Credit Balance....................................................................... 17.04 14.98
Advance received against Sale of Investment Property.............................................. 162.11 —
198.38 32.61
* Includes payable toward GST, TDS and Employee Related Statutory Obligations.
26. Provisions
` in Crores
As at As at
Provision for Compensated Absences (Refer Note 39)................. 13.82 12.78
Provision for Gratuity (Refer Note 39)........................................... 2.70 —
Provision for Retirement Benefits to Executive Directors
(Refer Note 39).............................................................................. 1.94 1.94
Provision for Indirect Taxes:
Opening Balance..................................................................... 3.86 3.86
Add: Provision during the year................................................ — —
Less: Utilisation / reversal during the year............................... 1.43 —
2.43 3.86
20.89 18.58
27. Current Tax Liabilities (Net)

` in Crores
As at As at
Current Tax Liabilities (Net)...................................................................................... — 4.99
— 4.99
289

28. Revenue from Operations

` in Crores

Sale of Products
Sales ....................................................................................... 7855.82 6563.24
Less: Discounts and Rebates ................................................. 815.62 703.77
Total Sale of Products........................................................... 7040.20 5859.47
Other Operating Revenues
Sale of Scrap........................................................................... 26.85 21.45
GST Incentives......................................................................... 2.47 9.86
Others*..................................................................................... 11.50 58.12
40.82 89.43
Revenue from Operations..................................................... 7081.02 5948.90
*Includes Royalty Income, write back of trade deposits and Others operating avenues
28.1. Disaggregation of revenue from contracts with customers

The Company derives revenue from sale of products from following major segments:
` in Crores

1) Revenue from contracts with customers:
Sale of products (Transferred at point in time)
Manufacturing
India....................................................................................................................... 6526.00 5382.62
Export..................................................................................................................... 10.62 11.60
(A).................................................. 6536.62 5394.22
Trading
India....................................................................................................................... 503.58 465.25
(B).................................................. 503.58 465.25
(C) = (A) + (B)................................ 7040.20 5859.47
2) Other operating revenue:
Sale of Scrap......................................................................................................... 26.85 21.45
GST Incentive........................................................................................................ 2.47 9.86
Others.................................................................................................................... 11.50 58.12
(D).................................................. 40.82 89.43
Total Revenue (C) + (D)............... 7081.02 5948.90
Major Product lines
Paint....................................................................................................................... 7040.20 5859.47
7040.20 5859.47
Sales by performance obligations
Upon delivery......................................................................................................... 7040.20 5859.47
7040.20 5859.47
Reconciliation of revenue from contract with customer:
Revenue from contracts with customer as per the contract price.......................... 7855.82 6563.24
Adjustments made to contract price on account of:
a) Discounts / Rebates / Incentives...................................................................... (815.62) (703.77)
b) Other Operating Revenue................................................................................ 40.82 89.43
Revenue from contracts with customer as per the Standalone Statement of

Profit and Loss.................................................................................................... 7081.02 5948.90
290

29. Other Income

` in Crores
Dividend Income
Dividend from Investment in Equity Shares ............................ 2.79 2.52
2.79 2.52
Interest Income
Interest on Loans and Deposit at amortised cost..................... 0.74 0.26
Interest on Bonds recognised through FVTPL......................... 0.58 1.19
1.32 1.45
Profit on Sale of Current Investments (Net).................................. 7.32 14.29
Fair Value Gain on Financial Instruments recognised through
FVTPL........................................................................................... 6.54 —
Other Non-operating Income
Profit on Sale of Property, Plant and Equipment (Net)............. 0.22 0.19
Foreign Exchange Gain (Net).................................................. 4.09 7.00
Insurance Claims Received..................................................... 5.01 3.88
Miscellaneous Income............................................................. 3.54 3.53
12.86 14.60
30.83 32.86
30. Cost of Materials Consumed

` in Crores
Raw Material Consumed
Opening Stock......................................................................... 478.50 345.01
Add: Purchase......................................................................... 4100.95 3677.86
Less: Sales.............................................................................. 12.26 15.75
Less: Closing Stock................................................................. 487.38 478.50
4079.81 3528.62
Packing Material Consumed
Opening Stock......................................................................... 18.15 14.58
Add: Purchase......................................................................... 515.37 488.93
515.35 485.36
4595.16* 4013.98*
* Includes ₹ 6.24 Crores (2021-2022 ₹ 3.95 Crores) expenditure incurred on Research and Development
291

31. Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-trade

` in Crores
Opening Stock
Finished Goods......................................................................... 807.90 585.55
Work-in-progress....................................................................... 141.30 99.33
Stock-in-trade (in respect of goods acquired for trading).......... 74.66 58.04
1023.86 742.92
Less: Closing Stock
Finished Goods......................................................................... 899.28 807.90
Work-in-progress....................................................................... 142.09 141.30
1130.24 1023.86
(106.38) (280.94)
32. Employee Benefits Expense

` in Crores
Salaries and Wages.................................................................................................... 288.53 275.35
Contribution to Provident and Other Funds (Refer Note 39)....................................... 24.39 22.30
Share based Payments to Employees (Refer Note 46).............................................. 3.75 —
Staff Welfare Expense................................................................................................. 17.17 14.72
333.84* 312.37*
33. Finance Cost

` in Crores
Interest on Lease Liabilities (Refer Note 44)............................................................... 9.73 9.49
Interest on Working Capital Loan................................................................................ — 0.38
9.73 9.87
34. Depreciation and Amortisation

` in Crores
Depreciation on Property, Plant and Equipment (Refer Note 2).................................. 130.26 120.08
Amortisation on Other Intangible Assets (Refer Note 6)............................................. 5.80 6.24
Amortisation on Right of use assets (ROU) (Refer Note 4)......................................... 28.57 27.50
164.63* 153.82*
* Includes ₹ 3.07 Crores (2021-2022 ₹ 3.06 Crores) depreciation and amortisation expenses on Research and Development
292

35. Other Expenses

` in Crores
31.18
Consumption of Stores and Spare Parts..................................................................... 28.98
87.73
Power and Fuel........................................................................................................... 69.09
0.51
Repairs to Buildings.................................................................................................... 0.40
15.86
Repairs to Machinery.................................................................................................. 14.04
351.88
Freight and Forwarding Charges................................................................................. 327.54
267.50
Advertisement and Sales Promotion........................................................................... 210.75
15.92
Rent............................................................................................................................. 13.16
2.71
Rates and Taxes.......................................................................................................... 3.06
13.67
Insurance..................................................................................................................... 11.80
210.99
Miscellaneous Expenses ............................................................................................ 181.11
997.95* 859.93*
35.1. Payments to Auditors'

` in Crores
Auditors’ Remuneration excluding GST (Included in Miscellaneous Expenses in Note 35)
As Auditor
Statutory Audit . ..................................................................................................... 0.30 0.25
Report under Section 44AB of the Income-tax Act, 1961...................................... 0.03 0.04
Limited Review of Quarterly Results...................................................................... 0.23 0.18
In other capacity
Certification............................................................................................................ 0.08 0.08
Other Matters......................................................................................................... 0.15 0.19
Reimbursements of Expenses................................................................................. 0.03 0.01
0.82 0.75
35.2. Research and Development Expenses

` in Crores
evenue Expenditure on Research and Development recognised in Standalone
R
Statement of Profit and Loss is................................................................................... 39.52 32.41
293

36. Contingent Liabilities and Commitments

(to the extent not provided for)
` in Crores
a.
Claims against the Company not acknowledged as debt:
Excise and Service Tax.......................................................................................... 8.38 8.38
Sales Tax................................................................................................................ 18.15 18.15
The Company has made adequate provisions in the accounts for claims against
the Company related to direct and indirect taxes matters, except for certain claims
not acknowledged as debts, totalling to ₹ 26.53 Crores (2021-2022 ₹ 26.53 Crores)
from the Excise / Service Tax / Sales Tax / GST Authorities, in respect of
disallowance of Cenvat Credit of Excise / Service Tax and Input Tax Credit of
Sales Tax / GST.
In addition, the Company is subject to other legal proceedings in respect of other
matters arisen in the ordinary course of business. The Company’s management
is of the opinion that ultimate liability in respect of these litigations shall not
exceed the amount provided in books of account, and shall not have any material
adverse effect on the Company’s operation and financial position.
b. Commitments:
Estimated amount of contracts remaining to be executed on capital account and
not provided for (Net of advances)........................................................................ 36.09 63.93
Company has entered into Share holding agreement (SHA) with M/s Amplus
Energy Solutions Private Limited to source green power through Group Captive
arrangement.......................................................................................................... — 2.05
Corporate guarantee
Stand by Letter of Credit (SBLC) given to Bank for loan taken by Kansai Nerolac
Paints (Bangladesh) Limited (formerly known as RAK Paints Limited) – Subsidiary
Company............................................................................................................... 22.76 25.83
Corporate guarantee given to Bank for loan taken by Kansai Nerolac Paints
(Bangladesh) Limited (formerly known as RAK Paints Limited) – Subsidiary
Company............................................................................................................... 9.01 81.01
Corporate guarantee given to Bank for Kansai Paints Lanka (Private) Limited -
Subsidiary Company............................................................................................. 8.73 8.92
103.12 208.27
c. Contribution to Provident Fund

There are numerous interpretative issues relating to the Supreme Court (SC)
judgment dated February 28, 2019 on Provident Fund (PF) on the inclusion
of allowances for the purpose of PF contribution as well as its applicability of
effective date. The impact is not expected to be material as per the assessment
made by the Company.
294

37. Earnings Per Equity Share

` in Crores
Basic Earnings per Equity Share (in ₹)
Numerator:
Profit attributable to Equity Shareholders (₹ in Crores) 486.43 374.33
Denominator:
Weighted Average Number of ordinary shares at the beginning and end of the year 53,89,19,720 53,89,19,720
Basic Earnings per Equity Share (in ₹) 9.03 6.95
Diluted Earnings per Equity Share (in ₹)
Numerator:
Profit attributable to Equity Shareholders (₹ in Crores) 486.43 374.33
Denominator:
Weighted Average Number of ordinary shares and dilutive shares 53,93,32,196 53,89,19,720
Diluted Earnings per Equity Share (in ₹) 9.02 6.95
38. Related Party Disclosures

A related party is a person or entity that is related to the entity that is preparing its Financial Statements
(a) A person or a close member of that person’s family is related to a reporting entity if that person:
(i) has control or joint control of the reporting entity;
(ii) has significant influence over the reporting entity; or
(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions applies:
(i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow
subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of
which the other entity is a member).
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the
reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
(vi) The entity is controlled or jointly controlled by a person identified in (a).
(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of
the entity (or of a parent of the entity).
(viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting
entity or to the parent of the reporting entity.
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related
party, regardless of whether a price is charged.
Parent and ultimate controlling entity

Name % Shareholding Type Principal Place of
2023 2022 Activities Incorporation
Kansai Paint Co., Ltd., . ............................ 74.99 74.99 Parent and Manufacturing Japan
ultimate paints and
controlling other related
entity materials
Kansai Paint Co., Ltd., is the immediate and ultimate holding company of Kansai Nerolac Paints Limited and is based and listed in
Japan. Financial Statements of Kansai Paint Co., Ltd., are available in public domain.
Subsidiaries Companies
KNP Japan Private Limited.......................... 68 68 Subsidiary Manufacturing Nepal
paints and other
related materials
Kansai Paints Lanka (Private) Limited........ 60 60 Subsidiary Manufacturing Sri Lanka
paints and
other related
materials
295

38. Related Party Disclosures (contd.)

Kansai Nerolac Paints (Bangladesh) 55 55 Subsidiary Manufacturing Bangladesh
Limited......................................................... paints and
other related
materials
Nerofix Private Limited 100 60 Subsidiary Manufacturing India
(W.e.f 31st March 2023, wholly owned paints and
subsidiary)................................................... other related
materials
Fellow Subsidiaries Companies

Name Type Principal Place of
Activities Incorporation
Kansai Paint Philippines Inc.............................................................................. Fellow Manufacturing Philippines
Subsidiary paints and
other related
materials
Kansai Paint Asia Pacific SDN.BHD. ................................................................ Fellow Manufacturing Malaysia
other related
materials
Kansai Plascon Kenya Ltd................................................................................ Fellow Manufacturing Kenya
other related
materials
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. Key management
personnel includes (1) Mr. P. P. Shah, Chairman (2) Mr. Anuj Jain, Managing Director w.e.f 1st April 2022 (Whole-time Director upto
31st March 2022) (3) Mr. N. N. Tata, Director upto 10th August 2022 (4) Ms. Sonia Singh, Director (5) Mr. Bhaskar Bhat, Director
w.e.f 10th August 2022 (6) Mr. P. D. Pai, CFO and (7) Mr. G. T. Govindarajan, Company Secretary.
Other entities where significant influence exist

— Kansai Nerolac Paints Limited Provident Fund
Transaction with related parties and Disclosure as per Regulation 53(f) of SEBI (Listing Obligation and disclosure
requirement) Regulations
` in Crores
Transaction Type Relation 2022-2023 2021-2022
Sale of finished goods/Intermediates

— Kansai Paints Lanka (Private) Limited............................... Subsidiary 7.38 —
— Kansai Nerolac Paints (Bangladesh) Limited.................... Subsidiary 0.24 0.77
— Kansai Paint Philippines Inc.............................................. Fellow Subsidiary 2.82 2.93
— Kansai Plascon Kenya Ltd................................................. Fellow Subsidiary — 1.05
Purchase of Goods
— Nerofix Private Limited....................................................... Subsidiary 27.87 23.19
Dividend Paid
— Kansai Paint Co., Ltd., Japan............................................ Parent and ultimate 40.41 212.17
controlling entity
Dividend Income
— KNP Japan Private Limited................................................ Subsidiary 2.76 2.48
Transfer under license agreements
Royalty Expense
— Kansai Paint Co., Ltd., Japan............................................ Parent and ultimate 22.26 15.31
controlling entity
296


requirement) Regulations (contd.)
` in Crores
Technical Fees Including Reimbursement of Expenses
— Kansai Paint Co., Ltd., Japan............................................ Parent and ultimate
controlling entity 0.42 0.06
— Kansai Paint Asia Pacific SDN.BHD.................................. Fellow Subsidiary 0.01 —
Royalty Income
— Kansai Paints Lanka (Private) Limited............................... Subsidiary 0.31 0.20
Income from Corporate guarantee issued

Equity Investment
— Kansai Paints Lanka (Private) Limited............................... Subsidiary 10.99 —
— Kansai Nerolac Paints (Bangladesh) Limited.................... Subsidiary 13.90 —
— Nerofix Private Limited....................................................... Subsidiary 37.00 —
Reimbursement of Expenses Recovered

— Kansai Paint Co., Ltd., Japan . ............................................... Parent and ultimate
controlling entity — 0.55
— KNP Japan Private Limited................................................... Subsidiary 0.95 0.63
— Kansai Paints Lanka (Private) Limited . ............................... Subsidiary 0.04 0.21
Reimbursement of Expenses
Contributions during the year (includes Employees'
share and contribution)
— Kansai Nerolac Paints Limited Provident Fund................. Other entities 1.38 1.37
Amount of outstanding balances, including commitments
in settlement
Receivable as at Year End
controlling entity — 0.55
— Kansai Paint Philippines Inc.............................................. Fellow Subsidiary 0.44 0.35
— Kansai Plascon Kenya Ltd. ............................................... Fellow Subsidiary — 0.40
Payable as at Year End
controlling entity 0.19 0.01
Corporate guarantee
Stand by Letter of Credit (SBLC)
297


requirement) Regulations (contd.)
` in Crores
Key Management Personnel
— Employee benefits#
Mr. H. M. Bharuka
Vice Chairman and Managing Director
(Upto 31st March 2022)*..................................................... — 16.93
Mr. Anuj Jain
Managing Director (W.e.f. 1st April 2022)
(Whole-time Director upto 31st March 2022)..................... 3.34 2.36
Mr. P. D. Pai
Chief Financial Officer....................................................... 1.67 1.38
Mr. G. T. Govindarajan
Company Secretary.......................................................... 0.89 0.70
— Commission and Fee for attending Board /Committee
Meetings to Independent Directors
Mr. P. P. Shah
Chairman........................................................................... 0.45 0.44
Mr. N. N. Tata
Independent Director
(Upto 10th August 2022)..................................................... 0.37 0.39
Ms. Sonia Singh
Independent Director......................................................... 0.40 0.35
Mr. Bhaskar Bhat
Independent Director
(W.e.f 10th August 2022)..................................................... 0.03 —
Related Party Transactions:

Related party transactions were made on terms equivalent to those that prevail in an arm’s length transactions. Outstanding
balances at the year-end are unsecured, interest free and will be settled in cash.
#
Includes commission paid for the previous year, company’s contribution to Provident Fund and Superannuation Fund and excludes
accrual for commission for the current year and restricted stock units (RSU) granted during the year worth of ₹ 6.11 Crores
(2021‑2022 ₹ Nil) to KMP’s in accordance with the Kansai Nerolac Paints Limited - Restricted Stock Unit Plan (‘RSU 2022 Plan’),
However, such RSU’s units would vest after fulfillment of vesting conditions in accordance with the RSU Plan 2022.
* Employee Benefits to Mr. H M Bharuka include retirement benefits of ₹ 8.24 Crores towards Gratuity, Leave Encashment
and Ex‑gratia.
As the future liabilities for gratuity, leave encashment and Director pension along with medical benefits are provided on an actuarial valuation
basis for the Company as a whole, the amount pertaining to individual is not ascertainable and therefore not included above.
During the year, the Company has given corporate guarantee of ₹ 8.60 Crores for short-term borrowing by the Kansai Nerolac
Paints (Bangladesh) Limited and the same has been repaid by the end of the year.

A. Defined Contribution Plans:
Contribution to defined contribution plan, recognised in the Standalone Statement of Profit and Loss under Company’s
Contribution to Provident Fund and Other Funds in Employee Benefits Expenses for the year are as under:
` in Crores

Employer's contribution to Regional Provident Fund Commissioner.................. 4.85 4.12
Employer's contribution to Family Pension Fund............................................... 4.73 4.58
Employer's contribution to Superannuation Fund............................................... 8.26 7.55
298


B. Defined Benefit Plans:
a. Gratuity
The following tables setout the funded status of the gratuity plans and the amounts recognised in the Company’s Financial
Statements as at 31 March, 2023 and 31 March, 2022:
` in Crores
Change in Defined Benefit Obligation
Defined Benefit Obligation at the beginning.............................................. 39.68 46.68
Current Service Cost................................................................................. 3.26 3.59
Interest Expense....................................................................................... 2.65 2.85
Benefit Payments from Plan Assets*......................................................... (3.54) (10.79)
Remeasurements - Actuarial (gains) / losses............................................ 0.75 (2.65)
Defined Benefit Obligation at the end........................................................ 42.80 39.68
Change in Fair Value of Plan Assets

Fair Value of Plan Assets at the beginning................................................ 45.49 43.18
Interest Income.......................................................................................... 2.89 2.61
Employer Contributions.............................................................................. 1.79 3.37
Benefit Payments from Plan Assets........................................................... (10.22) (4.37)
Remeasurements – Return on plan assets excluding amounts included in
interest income........................................................................................... 0.15 0.70
Fair Value of Plan Assets at the end.......................................................... 40.10 45.49
Net Asset/(liability)..................................................................................... (2.70) 5.81
* Includes direct payment by employer.
Components of Defined Benefit Cost recognized in the Standalone Statement of Profit and Loss under Employee
Benefit Expenses:
` in Crores
Current Service Cost.................................................................................. 3.26 3.59
Net Interest Cost........................................................................................ (0.24) 0.24
Defined Benefit Cost recognised in the Statement of Profit and Loss ......... 3.02 3.83
Components of Defined Benefit Cost recognized in the Statement of Other Comprehensive Income:
` in Crores
Actuarial (gains) / losses on Defined Benefit Obligation............................ 0.75 (2.65)
(Return)/loss on plan assets excluding amounts included in the net

interest on the net defined benefit liability/(asset).................................... (0.15) (0.70)
Defined Benefit Cost recognised in the Statement of Other
Comprehensive Income............................................................................ 0.60 (3.35)
The assumptions used to determine net periodic benefit cost are set out below:
Particulars Valuation Date
31 March, 2023
st
31st March, 2022
Discount Rate............................................................................................ 7.51% 7.00%
Salary Escalation....................................................................................... 7.50% 5% in next 1 year
and 7.5% thereafter
Weighted average duration of the defined benefit obligation (years).......... 9.13 10.59
299


B. Defined Benefit Plans (contd.)
a. Gratuity (contd.)
Sensitivity Analysis:
The sensitivity analyses are based on a change in a significant assumption, keeping all other assumptions constant. The
sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that
changes in assumptions would occur in isolation from one another.
Discount Rate, Salary Escalation Rate and Withdrawal Rate are significant actuarial assumptions. The change in the
Present Value of Defined Benefit Obligation for a change of 100 Basis Points from the assumed assumption is given below:
` in Crores
Scenario 31st March, 2023 31st March, 2022
Under Base Scenario................................................................................ 42.80 39.68
Salary Escalation - Up by 1% ................................................................... 46.48 41.97
Salary Escalation - Down by 1%............................................................... 39.53 37.57
Withdrawal Rates - Up by 1% .................................................................. 42.77 39.58
Withdrawal Rates - Down by 1%............................................................... 42.83 39.78
Discount Rates - Up by 1%....................................................................... 39.61 37.76
Discount Rates - Down by 1%................................................................... 46.48 41.80
Expected Rate of Return on Planned Asset.............................................. 7.51% 7.00%
Maturity Profile of Defined Benefit Obligations
Mortality Table 31st March, 2023 31st March, 2022

Attained Age Male Female Male Female
20 0.09% 0.09% 0.09% 0.09%
25 0.09% 0.09% 0.09% 0.09%
30 0.10% 0.10% 0.10% 0.10%
35 0.12% 0.12% 0.12% 0.12%
40 0.17% 0.17% 0.17% 0.17%
45 0.26% 0.26% 0.26% 0.26%
50 0.44% 0.44% 0.44% 0.44%
55 0.75% 0.75% 0.75% 0.75%
60 1.12% 1.12% 1.11% 1.11%
Assumptions regarding future mortality experience are set in accordance with the published statistics by the Life
Insurance Corporation of India.
The Company contributes all ascertained liabilities towards gratuity to the fund maintained by the Life Insurance
Corporation of India.
The Company expects to contribute ₹ 2.70 Crores (2021-2022 ₹ Nil Crores) to the fund during the subsequent
accounting year.
b. Provident fund (Managed by the Trust set up by the Company)
The Company has contributed ₹ 1.38 Crores (2021-2022 ₹ 1.37 Crores) to the Provident Fund Trust. The Company has
an obligation to fund any shortfall on the yield of the trust’s investments over the guaranteed interest rates on an annual
basis. These administered rates are determined annually predominantly considering the social rather than economic
factors and in most cases the actual return earned by the Company has been higher in the past years. The actuary has
provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based
on the below provided assumptions there is no shortfall.
The details of fund and plan asset position are given below:
` in Crores
As at As at
Particulars
Plan assets at period end, at fair value....................................................... 51.05 74.11
Present value of benefit obligation at period end......................................... 49.35 71.65
Asset recognised in balance sheet.............................................................. Nil Nil
300


b. Provident fund (Managed by the Trust set up by the Company) (contd.)
The plan assets have been primarily invested in Government Securities which comprises of Special Deposit Schemes
(SDS), State Development Loans (SDLs) and Government Bonds
Assumptions used in determining the present value obligation of the interest rate guarantee under the Deterministic Approach:
` in Crores
As at As at
Particulars
Discount Rate (%)...................................................................................... 7.30 6.63
Guranteed Interest Rate (%)...................................................................... 8.15 8.10
Expected Average Remaining Working Lives of Employees (Years).......... 8.30 11.07
c. Retirement Benefits to Executive Directors

` in Crores
As at As at
Particulars
Opening defined benefit obligation ............................................................ 24.22 —
Current service cost .................................................................................. — 0.05
Past Service Cost ...................................................................................... — 24.46
Interest Expenses . .................................................................................... 1.63 —
Remeasurement (gain)/loss ...................................................................... (0.81) —
Benefits paid . ............................................................................................ (1.96) (0.29)
Closing defined benefit obligation .............................................................. 23.08 24.22
Components of cost of Retirement Benefits to Executive Directors recognized in the Standalone Statement of
Profit and Loss under Employee Benefit Expenses:
` in Crores
Particulars
Current Service Cost................................................................................... — 0.05
Net Interest Cost.......................................................................................... 1.63 —
Defined Benefit Cost recognised in the Statement of Profit and Loss . ...... 1.63 0.05
Components of cost of Retirement Benefits to Executive Director recognized in the Statement of Other
Comprehensive Income:
` in Crores
Particulars
Actuarial (gains) / losses on Defined Benefit Obligation............................. (0.81) —
Defined Benefit Cost recognised in the Statement of Other
Comprehensive Income ............................................................................. (0.81) —
d. Compenseted Absenses
The increase in provision for compensated absences for the year is ₹ 1.04 Crores (2021-2022 ₹ 1.01 Crores).
40. Segment Reporting

The Management Committee of the Company, approved by the Board of Directors and Audit Committee performs the function of
allotment of resources and assessment of performance of the Company. Considering the level of activities performed, frequency
of their meetings and level of finality of their decisions, the Company has identified that Chief Operating Decision Maker function
is being performed by the Management Committee. The financial information presented to the Management Committee in the
context of results and for the purposes of approving the annual operating plan is on a consolidated basis for paints and other
related products of the Company. As the Management Committee monitors the business activity as a single business segment viz.
‘Paints’ and the sales substantially being in the domestic market, the financial statement are reflective of the information required by
Ind AS 108 “Operating Segments”.
301

41. Corporate Social Responsibilities

During the year, the Company has spent ₹ 12.70 Crores (2021-2022 ₹ 14.06 Crores) towards ‘Corporate Social Responsibility
Activities’ (CSR Activities).
(a) Gross amount required to be spent by the Company during the year ₹ 12.68 Crores (2021-2022 ₹ 14.01 Crores).
(b) Amount spent during the year on:
` in Crores
In Cash Yet to be Total
paid in cash
(i) Construction/acquisition of any asset......................................... — — —
(—) (—) (—)
(ii) On purposes other than (i) above............................................... 12.70 — 12.70
(14.06) (—) (14.06)
(previous year figures are in brackets)
(c) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a fund specified
in Schedule VII of the Companies Act (the Act), in compliance with second proviso to sub section 5 of section 135 of the Act.
(d) There are no unspent amounts in respect of ongoing projects, that are required to be transferred to a special account in
compliance of provision of sub section (6) of section 135 of Companies Act.
(e) Disclosure for excess CSR spent and carried forward for set-off in next year:
In case of S. 135(5) Excess amount spent
` in Crores
Financial Year Opening Balance Amount required to Amount spent during Closing Balance
be spent during the the year
year
2022-2023 0.07 12.68 12.70 0.09
2021-2022 0.02 14.01 14.06 0.07
42. Financial Instruments: Fair Values and Risk Management

(A) Accounting Classifications and Fair Values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy.
` in Crores
Year At FVTPL Level 1 Level 2 Level 3 Total
Financial Assets measured at Fair Value
Non-current Assets: Investments (Note 7)........... 2023 3.23 0.91 — 2.32 3.23
2022 1.09 0.73 — 0.36 1.09
Current Assets: Investments (Note 11)................. 2023 498.13 — 498.13 — 498.13
2022 209.46 — 209.46 — 209.46
There have been no transfers between Level 1 and Level 2 during the year and previous year.
(B) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:
— Credit Risk
— Liquidity Risk
— Market Risk
(i) Risk Management Framework
Risk Management Committee oversees the management of these risks. Management is supported by Risk Management
Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The
Risk Management Committee provides assurance to the management that Company’s risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company’s policies and risk objectives.
The Company’s Risk Management Policies are established to identify and analyses the risks faced by the Company to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk Management Policies and Systems
are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its
training and management standards and procedures, aims to maintain a disciplined and constructive control environment
in which all employees understand their roles and obligations.
302

42. Financial Instruments: Fair Values and Risk Management (contd.)

(B) Financial Risk Management (contd.)
(ii) Credit Risk
Credit Risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers, loans and investments
in debt securities. The carrying amounts of financial assets represent the maximum credit risk exposure.
Trade Receivables:
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Risk
Management Committee has established a credit policy under which each new customer is analysed individually for
creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s
review includes financial statements, credit agency information, industry information and in some cases bank references.
Sales limits are established for each customer and reviewed constantly. Any sales exceeding those limits require approval
from the management.
The concentration of credit risk is limited due to the fact that the customer base is large. There is no customer representing
more than 5% of the total balance of trade receivables. For trade receivables, as a practical expedient, the Company
computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically
observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.
` in Crores
Movement in expected credit loss allowance on trade receivable 31st March, 2023 31st March, 2022
Balance at the beginning of the year............................................................ 35.22 32.86

Loss allowance measured at lifetime expected credit losses....................... 0.51 2.36
Balance at the end of the year....................................................................... 35.73 35.22
Financial Instruments and Cash Deposits

Credit risks from balances with banks and financial institutions is managed by the Company’s Treasury Department in
accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and
within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore
mitigate financial loss through counterparty’s potential failure to make payments.
(iii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is
to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
Maturities of Financial Liabilities:

The table below analyse the Company’s financial liabilities into relevant maturing grouping based on their contractual
maturities:
` in Crores
On Upto 3 months 6 months 1 year to 3 years

Year ended Total
demand 3 months to 6 months to 1 year 2 years and above
Trade Payables.... 31-03-2023 — 937.51 — — — — 937.51
31-03-2022 — 890.40 — — — — 890.40
Other Financial 31-03-2023 51.11 17.21 — — — — 68.32

Liabilities...............
31-03-2022 31.54 19.97 — — — — 51.51
For maturity profile of lease liabilities, refer note 44.
303


(iv) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market price comprises three types of risks: interest rate risk, currency risk and other price risk, such
as equity price risk and commodity price risk. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimizing the return. In respect of monetary assets and liabilities
denominated in foreign currencies, the Company’s policy is to ensure that its net exposure is kept to an acceptable level.
Since the Company does not have any interest bearing borrowings, the exposure to risk of changes in market interest
rates is not applicable. Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes
in market traded price. Other price risk arises from financial assets such as investments in equity instruments, debentures
and bonds. Since the investments in equity instruments and debentures is not material and bonds being debt instruments,
the exposure to risk of changes in market rates is minimal. The details of such investments in equity instrument and
debentures is given in Note 7 and details of investments in bonds is given in Note 11.
Exposure to Currency Risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The Company enters into forward exchange contracts to hedge against its foreign currency
exposures relating to the recognised underlying liabilities and firm commitments. The Company's policy is to hedge its
exposures above predefined thresholds from recognised liabilities and firm commitments that fall due on timely basis. The
Company does not enter into any derivative instruments for trading or speculative purposes. The carrying amounts of the
Company's foreign currency denominated monetary items are as follows:
` in Crores
Financial Assets EURO JPY BDT GBP USD Total
Trade Receivables......................................................... 31-03-2023 — — — — 2.53 2.53
31-03-2022 — — — — 2.59 2.59
Financial Liabilities
Trade Payables............................................................. 31-03-2023 2.62 29.79 — 0.12 70.32 102.85

31-03-2022 1.08 10.57 0.02 — 53.33 65.00
Net exposure to Foreign Currency Risk (Liabilities)...... 31-03-2023 2.62 29.79 — 0.12 67.79 100.32
31-03-2022 1.08 10.57 0.02 — 50.74 62.41
(v) Foreign Currency Sensitivity Analysis

The following table demonstrate the sensitivity to a reasonable possible change in EURO, JPY, BDT and USD exchange
rates, with all other variable held constant.
` in Crores
Profit or Loss Equity net of tax
Strengthening Weakening Strengthening Weakening
31 March, 2023
st
EURO (5% movement)....................................... (0.13) 0.13 (0.10) 0.10
JPY (5% movement)........................................... (1.49) 1.49 (1.11) 1.11
BDT (5% movement).......................................... — — — —
USD (5% movement)......................................... (3.39) 3.39 (2.54) 2.54
31 March, 2022
st
EURO (5% movement)....................................... (0.05) 0.05 (0.04) 0.04
JPY (5% movement)........................................... (0.53) 0.53 (0.40) 0.40
BDT (5% movement).......................................... (0.00) 0.00 (0.00) 0.00
USD (5% movement)......................................... (2.54) 2.54 (1.90) 1.90
(vi) There are no outstanding Forward Foreign Exchange Contracts entered into by the Company during current and
previous year.
304


(C) Valuation techniques and significant unobservable inputs
Type Valuation technique Significant unobservable Inter-relationship

inputs between significant
unobservable
inputs and fair value
measurement
Other Non-current Discounted cash flows: The valuation – Forecast Annual revenue Generally, a changes in
assets: Investment model considers the present value of growth the annual revenue growth
measured at expected receipt/payment discounted – Forecast EBITDA growth margin rate is accompanied similar
amortised cost using appropriate discounting rates. – Risk adjustment discounted rate change in EBITDA margin.
Current The fair values of investments in mutual Not applicable Not applicable
investments – in fund units is based on the net asset
mutual funds value (‘NAV’) as stated by the issuers of
these mutual fund units in the published
statements as at Balance Sheet date.
NAV represents the price at which the
issuer will issue further units of mutual
fund and the price at which issuers will
redeem such units from the investors.
Carrying
amounts of cash and cash equivalents, trade receivables, loans, trade payables and other financial liabilities as at
31st March 2023 and 31st March 2022 approximate the fair value. Difference between carrying amounts and fair values of
bank deposits, earmarked balances with banks, other financial assets, other financial liabilities and borrowings subsequently
measured at amortised cost is not significant in each of the years presented.
43. isclosure under the Micro, Small and Medium Enterprises Development Act, 2006 are provided as under for the year
D
2022‑2023 and 2021-2022, to the extent the Company has received intimation from the “Suppliers” regarding their status
under the Act.
` in Crores
As at As at
(i) Principal amount and the interest due thereon remaining unpaid to each supplier
at the end of each accounting year (but within due date as per the MSMED Act)
Principal amount due to micro and small enterprise (Refer Note 23 and 24)........ 92.51 105.02
Interest due on above............................................................................................ — —
(ii) Interest paid by the Company in terms of Section 16 of the Micro, Small and
Medium Enterprises Development Act, 2006, along-with the amount of the
payment made to the supplier beyond the appointed day during the period......... — —
(iii) Interest due and payable for the period of delay in making payment (which have
been paid but beyond the appointed day during the period) but without adding
interest specified under the Micro, Small and Medium Enterprises Act, 2006....... — —
(iv) The amount of interest accrued and remaining unpaid at the end of each
accounting year..................................................................................................... — —
(v) Interest remaining due and payable even in the succeeding years, until such date
when the interest dues as above are actually paid to the small enterprises......... — —
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of
information collected by the Management. This has been relied upon by the auditors.
305

44. Disclosure of Lease as per Ind AS 116

The following is the summary of practical expedients elected on application:
(i) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
(ii) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on
the date of initial application.
(iii) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
(iv) Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is
applied only to contracts that were previously identified as leases under Ind AS 17.
The weighted average incremental borrowing rate applied to lease liabilities as at 31st March 2023 is 8.50% (2021-2022 8.50%).
The changes in the carrying value of right of use (ROU) assets for the year ended 31 March 2023 and 31 March 2022 are disclosed
in Note 4.
` in Crores
Amount as at Amount as at
Particulars
ROU Balance at the beginning of the year.................................................................... 165.15 150.55
Additions (Refer Note 4).................................................................................................... 38.39 43.75
Amortisation cost accrued during the year (Refer Note 4)................................................ (28.57) (27.50)
Deletions (Net off accumalated amortisation) .................................................................. (2.02) (1.65)
ROU Balance at the end of the year.............................................................................. 172.95 165.15
Lease Liabilities at the beginning of the year............................................................... 108.88 90.10
Additions............................................................................................................................ 38.39 43.77
Interest cost accrued during the year................................................................................ 9.73 9.49
Payment of lease liabilities................................................................................................ (34.98) (32.76)
Deletion............................................................................................................................. (2.75) (1.72)
Lease Liabilities at the end of the year......................................................................... 119.27 108.88
Current Lease Liabilities.................................................................................................... 25.49 22.95
Non-current Lease Liabilities............................................................................................. 93.78 85.93
Total Lease Liabilities...................................................................................................... 119.27 108.88
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet
the obligations related to lease liabilities as and when they fall due.
Rental expense recorded for short-term leases or cancelable in nature was ₹ 15.92 Crores (2021-2022 ₹ 13.16 Crores).
The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:
` in Crores
Amount as at Amount as at
Particulars
Not later than one year....................................................................................................... 34.41 31.10
Later than one year and not later than five years............................................................... 89.05 81.61
Later than five years........................................................................................................... 25.28 22.99
45.
The details of loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the
Companies (Meetings of Board and its Powers) Rules, 2014 are as follows:
(i) Details of Investments made are given in Note 7.
(ii) There are no Loans given by the Company in accordance with section 186 of the Companies Act, 2013 read with rules issued
thereunder.
(iii) Details of guarantees/ standby letter of credits (SBLC) issued by the Company in accordance with Section 186 of the
Companies Act, 2013 read with rules issued thereunder.
` in Crores
Name of the party Transaction Relationship Amount as at Amount as at

Kansai Nerolac Paints (Bangladesh) Limited SBLC Subsidiary
(in respect of loan taken from bank) ............. Company 22.76 25.83
Kansai Nerolac Paints (Bangladesh) Limited Guarantees Subsidiary
(in respect of loan taken from bank).............. Company 9.01 81.01
Kansai Paints Lanka (Private) Limited Guarantee Subsidiary
(in respect of loan taken from bank) ............. Company 8.73 8.92
306

46. Share based payments

The Company has granted share based incentives (Restricted Stock Units (“RSU”)) to certain eligible employees on 1 January 2023,
under Kansai Nerolac Paints Limited - Restricted Stock Unit Plan (‘RSU 2022 Plan’) approved by Nomination and Remuneration
Committee (NRC). As per the scheme, the number of shares that will vest as per vesting condition mentioned in scheme along with
performance measures as determined by NRC. The options granted under this scheme is exercisable by employees till four years
from date of its vesting. The Company has granted options at an exercise price of Re. 1/-.
Year Ended Year Ended

Options outstanding at the beginning of the year........................................................ — —

Granted during the year.............................................................................................. 11,92,792 —
Forfeited/Expired during the year................................................................................ 12,177 —
Exercised during the year............................................................................................ — —
Outstanding at the end of the year............................................................................... 11,80,615 —
The Company has estimated fair value of options using Black Scholes model for Restricted stock units and Monte Carlo Simulation
model for Performance Stock units. The following assumptions were used for calculation of fair value of options granted during the
year ended 31st March, 2023
Assumption factor (Black Scholes model) Estimate
Risk free rate................................................................................................................................................ 7.14%–7.23%

Expected life of option.................................................................................................................................. 4-7 years
Expected volatility......................................................................................................................................... 32%-35%
Assumption factor (Monte Carlo Simulation model) Estimate
Risk free rate................................................................................................................................................ 7.15%

Expected life of option.................................................................................................................................. 4-7 years
Expected volatility......................................................................................................................................... 34.2%
47. Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.
(ii) The Company has identified transaction with one struck off company i.e. Chemene Bombay Private Limited as Clearing and
Forwarding Agent with whom transaction during the year amounts to ₹ 0.15 Crores (2021-2022 ₹ 0.13 Crores).
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.
307

48. Ratio Analysis and its Elements

Ratios Numerator Denominator 2022-2023 2021-2022 % Variance
Current Ratio Times Current Assets Current Liabilities 2.85 2.91 (2.06%)
Debt Equity Ratio Times Total Debt Shareholder’s 0.02 0.02 0.00%
Equity
Debt Service Times Earnings for debt service = Debt service 18.63 13.06 42.65%*
Coverage ratio Net profit after taxes + Non- = Interest &
cash operating expenses Lease Payments
+ Principal
Repayments
Return on Equity % Net Profits after taxes – Average 11.08% 9.08% 22.03%
ratio Preference Dividend Shareholder’s
Equity
Inventory Turnover Times Cost of goods sold Average Inventory 3.12 3.12 0.00%
ratio
Trade Receivable Times Net credit sales Average Trade 6.76 6.47 4.52%
Turnover Ratio Receivable
Trade Payable Times Net credit purchases = Average Trade 7.01 6.68 4.76%
Turnover Ratio Gross credit purchases - Payables
purchase return + Employee
Benefits + Other Expenses
Net Capital Turnover Times Net sales = Total sales - Working capital = 3.05 3.01 1.33%
Ratio sales return Current assets –
Current liabilities
Net Profit ratio % Net Profit Net sales = Total 6.91% 6.39% 8.15%
sales - sales return
Return on Capital % Earnings before interest and Capital Employed 13.69% 12.06% 13.59%
Employed taxes = Tangible Net
Worth + Total Debt
+ Deferred Tax
Liability
Return on % Interest (Finance Income) Investment 5.50% 4.12% 33.50%**
Investment
* Reason for variation in ratios of more than 25% is due to increase in profit as compared to previous year due to low base of
previous year.
** Increase in return on investment is due to increase in interest rate in debt market during the year.
ACS No. 8887
308
FORM AOC-I
(Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts Rules, 2014)
Statement Containing salient features of the Financial Statement of Subsidiaries/ Associate Companies/ Joint Ventures
Consolidated
PART "A" : Subsidiaries

` in Crores
Profit/ Profit/ Extent of
The date since Reserves Provision
Name of Reporting Share Total Total (Loss) (Loss) Proposed Shareholding
Period when subsidiary and Investments Turnover for
Subsidiary Currency Capital Assets Liabilities before after Dividend (in
was acquired Surplus Taxation
Taxation Taxation percentage)
KNP Japan 2022-23 8.17 51.10 88.88 29.61 Nil 81.16 9.60 2.56 7.04 4.01 68%
1st October, 2012 NPR
Private Limited 2021-22 8.17 47.88 88.95 32.90 Nil 84.00 11.88 2.80 9.08 3.60 68%
Kansai Lanka 2022-23 77.67 (57.42) 44.74 24.49 Nil 26.73 (3.48) Nil (3.48) Nil 60%
Paints (Private) 30th July, 2015 LKR
Limited 2021-22 59.36 (55.52) 34.42 30.58 Nil 23.71 (17.64) Nil (17.64) Nil 60%
Kansai 2022-23 103.20 (124.61) 155.72 177.13 Nil 239.48 (11.82) 1.45 (13.27) Nil 55%
Nerolac Paints th
17 July, 2018 BDT
(Bangladesh)
Limited 2021-22 77.93 (119.58) 169.95 211.60 Nil 230.54 (21.04) 1.38 (22.41) Nil 55%
Nerofix Private 2022-23 20.00 (8.21) 77.68 65.89 Nil 146.80 0.10 Nil 0.10 Nil 100%*
17th July, 2019 INR
Limited 2021-22 20.00 (8.27) 73.88 62.15 Nil 110.42 (3.69) Nil (3.69) Nil 60%
Notes:
1. The assets and Liabilities are translated at the exchange rate prevailing at the Balance Sheet date, and income and expense items are translated at average rates of exchange for the year.
2. The reporting period of KNP Japan Pvt. Ltd, Kansai Lanka Paints Pvt. Ltd., Kansai Nerolac Paints (Bangladesh) Limited and Nerofix Private Limited are same as that of holding company
i.e.1st April, 2022 to 31st March, 2023.
3. Names of subsidiaries which are yet to commence operations as at 31st March, 2023 - Not Applicable
4. Names of subsidiaries which have been liquidated or sold during the year - Not Applicable
5. Nerofix Private Limited is wholly owned subsidiary w.e.f 31st March 2023
Since the company does not have any Associates or Joint Ventures, information pertaining to Part “B” to this form relating to Associates and Joint Ventures is not given.
For and on behalf of the Board of Directors of Kansai Nerolac Paints Limited
P. P. Shah Anuj Jain
Chairman Managing Director
DIN: 00066242 DIN: 08091524
Bhaskar Bhat Sonia Singh
Director Director
DIN: 00148778 DIN: 07108778
ACS No. 8887
309

To the Members of
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of Kansai Nerolac Paints Limited (hereinafter
referred to as “the Holding Company”), its subsidiaries (the Holding Company and its subsidiaries together referred to as
“the Group”) comprising of the consolidated Balance sheet as at March 31, 2023, the consolidated Statement of
Profit and Loss, including other comprehensive income, the consolidated Cash Flow Statement and the consolidated
Statement of Changes in Equity for the year then ended, and notes to the consolidated financial statements, including
a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated
financial statements”).
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration
of reports of other auditors on separate financial statements and on the other financial information of the subsidiaries,
the aforesaid consolidated financial statements give the information required by the Companies Act, 2013, as amended
(“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the consolidated state of affairs of the Group as at March 31, 2023, their consolidated profit including
other comprehensive income, their consolidated cash flows and the consolidated statement of changes in equity for the
year ended on that date.
Basis for Opinion

We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (SAs), as
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements’ section of our report. We are independent of the
Group in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the consolidated financial statements.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements for the financial year ended March 31, 2023. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter
is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have
fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The
results of audit procedures performed by us and by other auditors of components not audited by us, as reported by them in
their audit reports furnished to us by the management, including those procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying consolidated financial statements.
Revenue recognition on sale of goods (as described in Note 27 of the consolidated financial statements)
Revenue is measured based on the transaction Our audit procedures included, amongst others the following:
price, which is the consideration, adjusted for volume • We read and evaluated the Group’s policies for revenue recognition
discounts, rebates, scheme allowances, price and assessed its compliance with Ind AS 115 ‘Revenue from
concessions, incentives and returns, if any, (‘variable contracts with customers’;
consideration’) as specified in the contracts with the
customers. • We obtained an understanding, evaluated the design and tested
the operating effectiveness of internal controls related to sales
including variable consideration;
310
Consolidated 103rd Annual Report 2023

An estimate of variable consideration payable to • We performed the following tests for a sample of transactions
the customers is recorded as at the year-end. relating to variable consideration:
Such estimation is done based on the terms of • Read the terms of contract including rebates and discounts
contracts, rebates and discounts schemes and schemes as approved by authorized personnel.
historical experience.
• Assessed computation of variable consideration by comparing
We identified estimation of variable consideration
it with the budget, schemes, past trends and evaluated the
as a key audit matter because the Group’s
reasons for deviation, if any.
management exercises judgment in calculating
the said variable consideration. • We read and assessed the relevant disclosures made within the
consolidated financial statements.
Other Information
The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual report, but does not include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,
in doing so, consider whether such other information is materially inconsistent with the consolidated financial statements
or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management for the Consolidated Financial Statements
The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated financial
statements in terms of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income, consolidated cash flows and consolidated statement of changes
in equity of the Group in accordance with the accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. The respective Board of Directors of the companies included in the Group are responsible for maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of their respective
companies and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance
of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of
preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the
Group are responsible for assessing the ability of their respective companies to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group are also responsible for overseeing the financial
reporting process of their respective companies.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
311

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
the Holding Company has adequate internal financial controls with reference to financial statements in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group of which we are the independent auditors to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the audit of the financial statements
of such entities included in the consolidated financial statements of which we are the independent auditors. For the
other entities included in the consolidated financial statements, which have been audited by other auditors, such other
auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other entities included in the
consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements for the financial year ended March 31, 2023 and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Other Matter
(a) We did not audit the financial statements and other financial information, in respect of 3 subsidiaries whose financial
statements include total assets of Rs. 289.35 Crores as at March 31, 2023, and total revenues of Rs. 347.37 Crores and net
cash inflows of Rs. 24.07 Crores for the year ended on that date. These financial statement and other financial information
have been audited by other auditors, which financial statements, other financial information and auditor’s reports have
been furnished to us by the management. Our opinion on the consolidated financial statements, in so far as it relates to the
amounts and disclosures included in respect of these subsidiaries, and our report in terms of sub-sections (3) of Section 143
of the Act, in so far as it relates to the aforesaid subsidiaries is based solely on the report(s) of such other auditors.
Certain of these subsidiaries are located outside India whose financial statements and other financial information have
been prepared in accordance with accounting principles generally accepted in their respective countries and which have
been audited by other auditors under generally accepted auditing standards applicable in their respective countries.
The Holding Company’s management has converted the financial statements of such subsidiaries located outside India
from accounting principles generally accepted in their respective countries to accounting principles generally accepted
in India. We have audited these conversion adjustments made by the Holding Company’s management. Our opinion in
so far as it relates to the balances and affairs of such subsidiaries located outside India is based on the report of other
auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us.
Our opinion above on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the
other auditors and the financial statements and other financial information certified by the Management.
312

Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India
in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified
in paragraph 3(xxi) of the Order.
2. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the other auditors
on separate financial statements and the other financial information of subsidiaries, as noted in the ‘other matter’
paragraph we report, to the extent applicable, that:
(a) We/the other auditors whose report we have relied upon have sought and obtained all the information and
explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the
aforesaid consolidated financial statements;
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidation
of the financial statements have been kept so far as it appears from our examination of those books and reports
of the other auditors;
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Consolidated Cash Flow Statement and Consolidated Statement of Changes
in Equity dealt with by this Report are in agreement with the books of account maintained for the purpose of
preparation of the consolidated financial statements;
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors of the Holding Company as on March 31,
2023 taken on record by the Board of Directors of the Holding Company and the subsidiary company, none of
the directors of the Group’s companies incorporated in India, is disqualified as on March 31, 2023 from being
appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to consolidated financial statements
of the Holding Company and its subsidiary company, incorporated in India, and the operating effectiveness of
such controls, refer to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the
Holding Company to their directors in accordance with the provisions of section 197 read with Schedule V to the
Act. The provisions of section 197 read with Schedule V to the Act are not applicable to the subsidiary company
incorporated in India for the year ended March 31, 2023;
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information
and according to the explanations given to us and based on the consideration of the report of the other auditors
on separate financial statements as also the other financial information of the subsidiaries, as noted in the
‘Other matter’ paragraph:
i. The consolidated financial statements disclose the impact of pending litigations on its consolidated
financial position of the Group in its consolidated financial statements – Refer Note 35 to the consolidated
financial statements;
ii. The Group did not have any material foreseeable losses in long-term contracts including derivative contracts
during the year ended March 31, 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Holding Company during the year ended March 31, 2023. There were no amounts
which were required to be transferred to Investor Education and Protection Fund by the subsidiary company
incorporated in India during the year ended March 31, 2023.
iv. a) The respective managements of the Holding Company and its subsidiary company which is incorporated
in India whose financial statements have been audited under the Act have represented to us that, to the
best of its knowledge and belief and as disclosed in note 46 to the consolidated financial statements, no
funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Holding Company or such subsidiary company to or in any other
person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the respective
Holding Company or such subsidiary company (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
313

b) The respective managements of the Holding Company and its subsidiary company which is incorporated
in India whose financial statements have been audited under the Act have represented to us that, to the
best of its knowledge and belief and as disclosed in note 46 to the consolidated financial statements,
no funds have been received by the respective Holding Company or such subsidiary company from any
person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Holding Company or such subsidiary company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; and
c)
Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances performed by us, nothing has come to our or other auditor’s notice that has caused us or
the other auditors to believe that the representations under sub-clause (a) and (b) contain any material
mis-statement.
v. The final dividend paid by the Holding Company during the year in respect of the same declared for the
previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
As stated in note 17 to the consolidated financial statements, the respective Board of Directors of the Holding
Company have proposed final dividend for the year which is subject to the approval of the members at the
ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the
extent it applies to declaration of dividend.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable only w.e.f. April 1, 2023
for the Holding Company, its subsidiary company incorporated in India, hence reporting under this clause is
not applicable.

per Anil Jobanputra
Partner
UDIN: 23110759BGVZSE3728
Date: May 08, 2023
314
Annexure 1 to the Independent Auditor’s Report

Annexure ‘1’ referred to in paragraph under the heading “Report on other legal and regulatory requirements” of
our report of even date
Re: Kansai Nerolac Paints Limited (“the Holding Company”)
In terms of the information and explanations sought by us and given by the Holding Company its subsidiary
company incorporated in India and the books of account and records examined by us in the normal course of audit
and to the best of our knowledge and belief, we state that:
Qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports of
the companies included in the consolidated financial statements are:
Holding company/ Clause number of the

subsidiary/ associate/ CARO report which is
S. No Name CIN joint venture qualified or is adverse
1. Nerofix Private Limited U24299MH2019PTC328170 Subsidiary Clause (ix)(d) and (xix)

per Anil Jobanputra
Partner
Date: May 08, 2023
315
Annexure 2 to the Independent Auditor’s Report

Annexure 2 to the Independent Auditor’s Report of even date on the consolidated financial statements of Kansai
Nerolac Paints Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of Kansai Nerolac Paints Limited (hereinafter referred
to as the “Holding Company”) as of and for the year ended March 31, 2023, we have audited the internal financial controls
with reference to consolidated financial statements of the Holding Company and its subsidiary (the Holding Company and
its subsidiary together referred to as “the Group”), which are companies incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the companies included in the Group, which are companies incorporated in India, are
responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting
criteria established by the Holding Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence
to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Our responsibility is to express an opinion on the Holding Company’s internal financial controls with reference to these
consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, specified
under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both, issued by ICAI.
Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial
statements was established and maintained and if such controls operated effectively in all material respects.
Our responsibility is to express an opinion on the company’s internal financial controls over financial reporting with reference
to these consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing,
both, issued by Institute of Chartered Accountants of India, and deemed to be prescribed under section 143(10) of the Act,
to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting with reference to these consolidated financial statements was established
and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
with reference to these consolidated financial statements and their operating effectiveness. Our audit of internal financial
controls with reference to consolidated financial statements included obtaining an understanding of internal financial controls
with reference to these consolidated financial statements, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the internal financial controls with reference to these consolidated financial statements.
Meaning of Internal Financial Controls with Reference to Consolidated Financial Statements
A company’s internal financial control with reference to consolidated financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference
to consolidated financial statements includes those policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
316
Annexure 2 to the Independent Auditor’s Report (Contd.)

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets
that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including
the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated
financial statements to future periods are subject to the risk that the internal financial controls with reference to consolidated
financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Holding Company and its subsidiary company, which are companies incorporated in India, have,
maintained in all material respects, adequate internal financial controls with reference to these consolidated financial
statements and such internal financial controls with reference to these consolidated financial statements were operating
effectively as at March 31, 2023, based on the internal control over financial reporting criteria established by the Holding
Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

per Anil Jobanputra

Partner
Date: May 08, 2023
317
Consolidated Balance Sheet as at 31 st

March, 2023
` in Crores
Note As at 31 March, 2023
st
As at 31 March, 2022
st
ASSETS
Non-current Assets
Property, Plant and Equipment............................................................ 2 1888.24 1775.38
Capital Work-in-progress..................................................................... 113.06 224.58
Right of Use Assets (ROU).................................................................. 3 182.45 174.00
Investment Property ........................................................................... 4 0.13 0.18
Goodwill on Consolidation .................................................................. 5A 19.78 19.78
Other Intangible Assets....................................................................... 5B 17.41 26.82
2221.07 2220.74
Financial Assets:
Investments.................................................................................... 6 3.23 1.08
Other Financial Assets ................................................................... 7 16.80 13.87
20.03 14.95
Non-Current Tax Assets (Net).............................................................. 173.83 155.77
Other Non-current Assets.................................................................... 8 88.31 87.64
.Total Non-current Assets.................................................. 2503.24 2479.10
Current Assets
Inventories........................................................................................... 9 1729.13 1629.55
Financial Assets:
Investments.................................................................................... 10 498.13 209.46
Trade Receivables......................................................................... 11 1237.91 1093.33
Cash and Cash Equivalents........................................................... 12 104.61 77.04
Bank Balances other than Cash and Cash Equivalents................ 13 22.25 28.96
Other Financial Assets................................................................... 14 9.40 26.49
1872.30 1435.28
Other Current Assets........................................................................... 15 201.64 165.45
.Total Current Assets......................................................... 3803.07 3230.28
Asset held for Sale ................................................................................. 4A 0.05 —
Total Assets....................................................................... 6306.36 5709.38
EQUITY AND LIABILITIES
Equity
Equity Share Capital............................................................................ 16 53.89 53.89
Other Equity......................................................................................... 17 4479.81 4078.33
Equity attributable to owners of the Company.................................... 4533.70 4132.22
Non-controlling Interests...................................................................... 17 26.71 19.29
Total Equity........................................................................ 4560.41 4151.51
Liabilities
Non-current Liabilities
Borrowings................................................................................ 18 4.69 10.94
Lease Liabilities........................................................................ 44 99.97 92.11
Provisions...................................................................................... 19 22.76 22.27
Deferred Tax Liabilities (Net).......................................................... 20 111.88 106.49
.Total Non-current Liabilities............................................. 239.30 231.81
Current Liabilities
Borrowings................................................................................ 21 155.30 192.06
Lease Liabilities........................................................................ 44 27.08 23.60
Trade Payables......................................................................... 22
Total Outstanding dues of Micro Enterprises and Small
Enterprises.......................................................................... 90.81 102.37
Total Outstanding dues of creditors other than Micro
Enterprises and Small Enterprises.................................... 924.74 878.27
1015.55 980.64
Other Financial Liabilities............................................................... 23 69.74 52.98
1267.67 1249.28
Other Current Liabilities................................................................. 24 215.76 51.17
Provisions...................................................................................... 25 23.22 20.62
Current Tax Liabilities (Net)............................................................ 26 — 4.99
.Total Current Liabilities.................................................... 1506.65 1326.06
.Total Liabilities.................................................................. 1745.95 1557.87
.Total Equity and Liabilities............................................... 6306.36 5709.38
Significant Accounting Policies.................................................................. 1
The notes referred to above form an integral part of Consolidated Financial Statements
ACS No. 8887
318
Consolidated Statement of Profit and Loss for the year ended 31 st

March, 2023
` in Crores
Note 31st March, 2023 31st March, 2022
Income
Revenue from Operations...................................................................... 27 7542.73 6369.35
Other Income......................................................................................... 28 25.98 25.41
Total Income......................................................................................... 7568.71 6394.76
Expenses
Cost of Materials Consumed.................................................................. 29 4888.68 4318.57
Purchases of Stock-in-trade................................................................... 470.36 401.54
Changes in Inventories of Finished Goods, Work-in-progress and

Stock-in-trade.................................................................................................. 30 (94.76) (292.81)
Employee Benefits Expense.................................................................. 31 377.05 355.58
Finance Costs........................................................................................ 32 29.00 28.59
Depreciation and Amortisation Expenses.............................................. 33 180.08 169.77
Other Expenses..................................................................................... 34 1083.41 937.11
Total Expenses..................................................................................... 6933.82 5918.35
Profit Before Tax......................................................................................... 634.89 476.41
Tax Expense
Current Tax............................................................................................. 20 163.52 136.46
Adjustment of tax relating to earlier periods .......................................... 20 (2.43) —
Deferred Tax........................................................................................... 20 5.33 (3.20)
Total Tax Expense................................................................................ 166.42 133.26
Profit for the Year....................................................................................... 468.47 343.15
Other Comprehensive Income
(i) Items that will not be reclassified to Consolidated Statement of
Profit and Loss
(a) Remeasurement of Employee Defined Benefit Liability................... (0.22) 3.05
(b) Income tax relating to items that will not be reclassified to
Consolidated Statement of Profit and Loss...................................... (0.05) (0.84)
Net Other Comprehensive income not to be reclassified subsequently
to Consolidated Statement of Profit and Loss............................................... (0.27) 2.21
(ii) Items that will be subsequently reclassified to Consolidated Statement
of Profit and Loss
(a) Exchange Differences on translation of financial statements of
foreign subsidiaries.......................................................................... 10.42 1.00
(b) Income tax relating to items that will be reclassified to Consolidated
Statement of Profit and Loss............................................................ — —
Net Other Comprehensive income to be reclassified subsequently
to Consolidated Statement of Profit and Loss........................................ 10.42 1.00
Other Comprehensive Income (net of taxes)........................................... 10.15 3.21
Total Comprehensive Income for the year............................................... 478.62 346.36
Profit Attributable to:
Owners of the Company........................................................................ 473.58 358.86
Non-Controlling Interests....................................................................... (5.11) (15.71)
Profit for the year................................................................................. 468.47 343.15
Other Comprehensive Income attributable to:
Other Comprehensive Income for the year 10.15 3.21
Total Comprehensive Income attributable to:
Total Comprehensive Income for the year............................................... 478.62 346.36
Earnings per Share (of ₹ 1 each):
Basic (in `)............................................................................................. 36 8.79 6.66
Diluted (in `)........................................................................................... 36 8.78 6.66
The notes referred to above form an integral part of Consolidated Financial Statements
ACS No. 8887
319
Consolidated Statement of Changes in Equity

A. Equity Share Capital ` in Crores
Balance as at 1st April, 2021......................................................................................................................................... 53.89
Changes in Equity Share Capital during 2021-22..................................................................................................... —
Changes in Equity Share Capital during 2022-23..................................................................................................... —
B. Other Equity
` in Crores
Share Foreign Total
Capital Securities General Retained Based Currency attributable to Attributable
Total
Reserve Premium Reserve Earnings Payment Translation owners of the to NCI
Reserve Reserve Company
Balance as at 1st April, 2022.............. 0.30 12.56 488.51 3,582.49 — (5.54) 4,078.33 19.29 4,097.62
Profit for the year................................ — — — 473.58 — — 473.58 (5.11) 468.47
Remeasurement of Employee Defined
Benefit Liability................................. — — — (0.04) — — (0.04) (0.18) (0.22)
Employee Defined Benefit Liability.... — — — (0.05) — — (0.05) — (0.05)
Exchange differences on translation of
foreign operations............................ — — — — — 10.42 10.42 — 10.42
Other Comprehensive Income, (net of
tax)...................................................... — — — (0.09) — 10.42 10.33 (0.18) 10.15
Total Comprehensive Income for the
Year..................................................... — — — 473.49 — 10.42 483.91 (5.29) 478.62
Transaction with Owners in their
Capacity as Owners:
Issue of Share Capital .................... — — — — — — — 18.72 18.72
Dividends......................................... — — — (53.89) — — (53.89) (1.29) (55.18)
Share based payment expense ....... — — — 3.75 — 3.75 — 3.75
Non Controlling Interest .................. — — — (32.28) — — (32.28) (4.72) (37.00)
— — — (86.17) 3.75 — (82.42) 12.71 (69.71)
Balance as at 31st March, 2023......... 0.30 12.56 488.51 3969.81 3.75 4.88 4479.81 26.71 4506.52
` in Crores
Share Foreign Total
Capital Securities General Retained Based Currency attributable to Attributable Total
Balance as at 1st April, 2021.................. 0.30 12.56 488.51 3504.18 — (6.54) 3999.01 36.28 4035.30
Profit for the year................................... — — — 358.86 — 358.86 (15.71) 343.15
Remeasurement of Employee
Defined Benefit Liability.................... — — — 3.18 — — 3.18 (0.13) 3.05
Employee Defined Benefit Liability... — — — (0.84) — — (0.84) — (0.84)
Exchange differences on translation
of foreign operations........................ — — — — — 1.00 1.00 — 1.00
Other Comprehensive Income, (net of
tax) ........................................................ — — — 2.34 — 1.00 3.34 (0.13) 3.21
Total Comprehensive Income for the
Year....................................................... — — — 361.20 — 1.00 362.20 (15.84) 346.36
Capacity as Owners:
Issue of Share Capital..................... — — — — — — — 19.73 19.73
Dividends......................................... — — — (282.89) — — (282.89) (1.15) (284.04)
— — — (282.89) — — (282.89) 18.58 (264.31)
Balance as at 31st March, 2022............. 0.30 12.56 488.51 3582.49 — (5.54) 4078.32 19.29 4097.62
ACS No. 8887
320
Consolidated Statement of Cash Flows

` in Crores
Cash Flow from Operating Activities

Net Profit before tax...................................................................................... 634.89 476.41
Adjustments for:
Depreciation and Amortization Expenses................................................ 180.08 169.77
Fair Value (Gain)/ Loss on Financial Instruments recognised through FVTPL (6.54) 0.61
Unrealised Foreign Exchange (Gain) (net).............................................. (1.11) (0.95)
Profit on Sale of Current Investments (Net)............................................. (7.32) (14.29)
Interest Income........................................................................................ (2.84) (2.59)
Dividend Income...................................................................................... (0.03) (0.03)
Finance Cost........................................................................................... 29.00 28.59
(Profit) on Sale of Property, Plant and Equipment (Net).......................... (0.32) (0.60)
Impairment loss allowance on trade receivables..................................... 2.43 2.81
Provisions/Liabilities no longer required written back.............................. (0.66) (47.44)
Share based payment ............................................................................ 3.75 —
Gain from Closure of Lease Liability ....................................................... (0.73) —
195.71 135.88
Operating Profit before Working Capital Changes........................................ 830.60 612.29
(Increase) in Trade And Other Receivables.................................................. (196.94) (106.29)
(Increase) in Inventories............................................................................... (99.58) (431.61)
Increase in Trade Payables, Other Financial Liabilities and Provisions....... 60.72 112.14
(235.80) (425.76)
Cash Generated from Operations................................................................. 594.80 186.53
Direct Taxes Paid (Net of Refunds)............................................................... (186.55) (161.76)
Net Cash Flows generated from Operating Activities............................. 408.25 24.77
Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Other Intangible Assets
(Including Adjustments on Account of Capital Work-In-Progress, Capital
Creditors and Capital Advances)................................................................. (123.17) (219.01)
Proceeds from Sale Property, Plant, Equipment........................................... 1.65 1.07
Advance for Sale of Investment Property .................................................... 162.11 —
Purchase of non current Investments.......................................................... (2.15) (0.14)
Purchase of current Investments................................................................. (2,782.50) (3,014.36)
Proceeds from Sale/ Redemption of Investments......................................... 2,507.69 3,486.64
Interest Received.......................................................................................... 2.84 2.59
Dividend Received........................................................................................ 0.03 0.03
Proceeds from/ (Investments in) Fixed deposits .......................................... 6.59 (7.28)
Net Cash Flows (used in)/ generated from Investing Activities............. (226.91) 249.54
Cash Flow from Financing Activities
(Repayment of) long-term Borrowings.......................................................... (6.25) (0.05)
(Repayment of)/ Proceeds from Current Borrowings.................................... (15.59) 26.99
Payment of Lease Liabilities......................................................................... (37.00) (34.11)
Interest Paid.................................................................................................. (18.58) (18.10)
Dividend Paid................................................................................................ (55.18) (284.04)
Net Cash Flows (used in) Financing Activities........................................ (132.60) (309.31)
Net Increase/ (Decrease) in Cash and Cash Equivalents........................ 48.74 (35.00)
321
Consolidated Statement of Cash Flows

` in Crores

ash and Cash Equivalents at Beginning of the year the components
C
being: (Refer note 11)
Cash on Hand.......................................................................................... 1.11 0.30
Cheques on hand.................................................................................... 23.34 16.78
Balances with Banks............................................................................... 51.61 85.86
Bank overdrafts and Cash Credit (Refer Note 21)................................... (88.21) (79.00)
Effect of exchange rate fluctuation.......................................................... 0.98 (0.11)
(11.17) 23.83
Cash and Cash Equivalents at end of the year the components

being: (Refer note 11)
Cash on Hand.......................................................................................... 0.27 1.11
Cheques on hand.................................................................................... 22.38 23.34
Balances with Banks................................................................................ 75.97 51.61
Deposit with Banks with less than 3 months maturity................................ 5.00 —
Bank overdrafts and Cash Credit (Refer Note 21).................................... (67.03) (88.21)
Effect of exchange rate fluctuation............................................................ 0.98 0.98
37.57 (11.17)
Net (Decrease)/ Increase as disclosed above ............................................... 48.74 (35.00)
Debt Reconciliation Statement in accordance with Ind AS 7

` in Crores
31 March, 2023
st
31 March, 2022
st
Opening Balances
Long-term Borrowings....................................................................................................... 10.94 17.19
Current Borrowings (Excluding Bank overdrafts and Cash Credit)................................... 103.85 72.09
Movements
Non-Current Borrowing .................................................................................................... (6.25) (6.25)
Current Borrowings (Excluding Bank overdrafts and Cash Credit)................................... (15.59) 31.76
Closing Balances
Non-Current Borrowing .................................................................................................... 4.69 10.94
Current Borrowings (Excluding Bank overdrafts and Cash Credit)................................... 88.26 103.85
Notes:
i) Figures in brackets are outflows/deductions.
ii) The above cash flow statement is prepared under the “Indirect Method” as set out in the Indian Accounting Standard (Ind AS-7) -
Statement of Cash Flows.
ACS No. 8887
322
Notes to the Consolidated Financial Statements

A. Corporate Information
Kansai Nerolac Paints Limited (the “Holding Company”) is a public limited company domiciled in India and incorporated under the
provisions of the Companies Act. Company’s shares are listed on National Stock Exchange and Bombay Stock Exchange. The
registered office of the Company is located at Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013. The Holding
Company is principally engaged in the manufacturing of Paints.
Kansai Paint Co. Ltd., Japan is immediate and ultimate holding company of Kansai Nerolac Paints Limited and is based and listed in
Japan. Financial Statements of Kansai Paint Co. Ltd., Japan are available in public domain.
The Consolidated Financial Statements relate to Kansai Nerolac Paints Ltd (the “Holding Company”) and its Subsidiary Companies,
KNP Japan Private Limited, a company incorporated in Nepal in which the Holding Company has 68% equity holding, Kansai Paints
Lanka (Private) Limited, a company incorporated in Sri Lanka in which the Holding Company has 60% equity holding, Kansai Nerolac
Paints (Bangladesh) Limited, a company incorporated in Bangladesh in which the Holding Company has 55% equity holding and
Nerofix Private Limited, a company incorporated in India in which the Holding Company has 100% equity holding, hereinafter referred
to as the “Group”.
The Consolidated Financial Statements for the year ended 31st March, 2023 have been reviewed by the Audit Committee and
approved by the Board of Directors of the Holding Company at their meetings held on 8th May, 2023.
B. Basis of Preparation
1. Statement of Compliance
The Consolidated Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the
Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (there ‘Act’) and other
relevant provisions of the Act, as amended from time to time.
Details of Group’s Accounting Policies are included in Note 1.
2. Functional and Presentation Currency
The Consolidated Financial Statements are presented in Indian Rupees (INR), which is also the Group’s functional currency. All amounts
have been rounded-off to the nearest crores, unless otherwise indicated.
3. Basis of Measurement
The Consolidated Financial Statements have been prepared on the historical cost basis except for investments in mutual funds, non‑trade
equity shares, bonds and employee defined benefit plans, which are measured at fair values at the end of each reporting period.
4. Use of Estimates and Judgements
Critical accounting judgments and key sources of estimation uncertainty:
The preparation of the Consolidated financial statements in conformity with the Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and
disclosures as at date of the Consolidated financial statements and the reported amounts of the revenues and expenses for the years
presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates under different assumptions and conditions.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if
the revision affects both current and future periods.
i) Impairment of Goodwill
Goodwill is tested for impairment on an annual basis and whenever there is an indication that the recoverable amount of a
cash generating unit is less than its carrying amount based on a number of factors including operating results, business plans,
future cash flows and economic conditions. The recoverable amount of cash generating units is determined based on higher of
value-in-use and fair value less cost to sell. The goodwill impairment test is performed at the level of the cash generating unit
or groups of cash-generating units which are benefitting from the synergies of the acquisition and which represents the lowest
level at which goodwill is monitored for internal management purposes.
Market related information and estimates are used to determine the recoverable amount. Key assumptions on which management
has based its determination of recoverable amount include estimated long term growth rates, weighted average cost of capital
and estimated operating margins. Cash flow projections take into account past experience and represent management’s best
estimate about future developments.
ii) Critical Judgments
In the process of applying the Group’s accounting policies, management has made the following judgments, which have the
most significant effect on the amount recognised in the financial statements.
Discount rate used to determine the carrying amount of the Groups’s employees defined benefit obligation.
In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of
government bonds in currencies consistent with the currencies of the post-employment benefit obligation.
Contingencies and Commitments
In the normal course of business, contingent liabilities may arise from litigations and other claims against the Group. Where
the potential liabilities have a low probability of crystallising or are very difficult to quantify reliably, we treat them as contingent
liabilities. Such liabilities are disclosed in the notes but are not provided for in the consolidated financial statements. Although
there can be no assurance regarding the final outcome of the legal proceedings, we do not expect them to have a materially
adverse impact on our financial position or profitability.
323

B. Basis of Preparation (contd.)

4. Use of estimates and judgements (contd.)
iii) Key Sources of Estimation Uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below:
Useful Lives of Property, Plant and Equipment
As described in Note 1(3)(c), the Group reviews the estimated useful lives and residual values of property, plant and equipment
at the end of each reporting period. During the current financial year, the management determined that there were no changes
to the useful lives and residual values of the property, plant and equipment.
Impairment loss allowance on trade receivables
The Group makes loss allowances for credit impaired debts based on an assessment of the recoverability of trade and other
receivables. The identification of credit impaired debts requires use of judgments and estimates. Where the expectation is
different from the original estimate, such difference will impact the carrying value of the trade and other receivables and credit
impaired debts expenses in the period in which such estimate has been changed.
Allowances for Inventories
Management reviews the inventory age listing on a periodic basis. This review involves comparison of the carrying value of the
aged inventory items with the respective net realizable value. The purpose is to ascertain whether an allowance is required to
be made in the financial statements for any obsolete and slow-moving items. Management is satisfied that adequate allowance
for obsolete and slow-moving inventories has been made in the consolidated financial statements.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow
model, which involve various judgements and assumptions.
The costs and present value of the defined benefit gratuity plan and other long-term employee benefits are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
future. These include the determination of appropriate discount rate, salary escalation rate, expected rate of return on assets
and mortality rates. Due to the complexities involved in the valuation and its long-term nature, defined benefit plans are highly
sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date and the same are disclosed in
Note 38, ‘Employee benefits’.
C. Basis of Consolidation
The Consolidated Financial Statements comprise the financial statements of the Holding Company and its subsidiaries as at
31st March, 2023. Subsidiaries are entities controlled by the Holding Company. The Holding Company controls an entity when it is
exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. The financial statements of subsidiaries are included in the Consolidated Financial Statements from the date
on which control commences until the date on which control ceases.
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group’s interest in the net
fair value of the identifiable assets, liabilities and contingent liabilities of the entity of the entity recognised at the date of acquisition.
Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
Non-controlling Interests are that part of the net results of operations and of net assets of a subsidiary attributable to the interests
which are not owned directly or indirectly by the equity holders of the Group. They are shown separately in the consolidated statement
of comprehensive income, statement of changes in equity and consolidated balance sheet. Total comprehensive income is attributed
to the non-controlling interests based on their respective interests in a subsidiary, even if this results in non-controlling interests
having a deficit balance. Non-controlling interests (NCI) are measured at their proportionate share of the acquiree’s net identifiable
assets at the date of acquisition.
Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions are eliminated.
Unrealised gains arising from transactions with equity accounted investees are eliminated against the Investments to the extent of
the Holding Company’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the
extent that there is no evidence of impairment.
Note 1: Significant Accounting Policies

1.Classification of Assets and Liabilities
Schedule III to the Act, requires assets and liabilities to be classified as either Current or Non-current.
(a) An asset shall be classified as current when it satisfies any of the following criteria:
(i) it is expected to be realised in, or is intended for sale or consumption in, the Group’s normal operating cycle;
(iii) it is expected to be realised within twelve months after the reporting date; or
(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting date.
(b) All assets other than current assets shall be classified as non-current.
324


1. Classification of Assets and Liabilities (contd.)
(c) A liability shall be classified as current when it satisfies any of the following criteria:
(i) it is expected to be settled in the Group’s normal operating cycle;
(iii) it is due to be settled within twelve months after the reporting date; or
(iv) the Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
(d) All liabilities other than current liabilities shall be classified as non-current.
2. Operating Cycle
An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The
Group has ascertained the operating cycle as twelve months for the purpose of current or non-current classification of assets and
liabilities.
3.
Property, Plant and Equipment
An item of Property, Plant and Equipment that qualifies for recognition as an asset is initially measured at its cost and then
carried at the cost less accumulated depreciation and accumulated impairment, if any.
The cost of an item of Property, Plant and Equipment comprises its purchase price, including import duties and non-refundable
purchase taxes, after deducting trade discounts and rebates and any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by management. The initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located is included in the cost of an item
of property, plant and equipment.
The cost of a self-constructed item of Property, Plant and Equipment comprises the cost of materials and direct labor, any other
costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and
removing the item and restoring the site on which it is located.
Tangible Property, Plant and Equipment under construction are disclosed as Capital Work-in-progress. Item of Capital Work-in-
progress is carried at cost using the principles of valuation of item of property, plant and equipment till it is ready for use, the
manner in which intended by management.
(b) Subsequent Measurement
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will
flow to the Group.
(c) Depreciation
The depreciable amount of an item of property, plant and equipment is allocated on a systematic basis over its useful life. The
Group provides depreciation on the straight line method. The Group believes that straight line method reflects the pattern in
which the asset’s future economic benefits are expected to be consumed by the Group. The depreciation method is reviewed at
least at each financial year-end and, if there has been a significant change in the expected pattern of consumption of the future
economic benefits embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted
for as a change in an accounting estimate in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates
and Errors.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is
depreciated separately.
The depreciation charge for each period is generally recognised in the Consolidated Statement of Profit and Loss unless it is
included in the carrying amount of another asset.
from previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Ind AS 8 -
Accounting Policies, Changes in Accounting Estimates and Errors. The estimated useful lives for the current and comparable
– as per Companies Act, 2013 – as estimated by the Group
Plant and Equipments 10-20 10-25
Furniture and Fixtures 10 10-15
Vehicles 10 5-10
Office Equipments 5 5-10
Computers 3-6 3-6
Assets for Scientific Research 10-20 20
Assets on Operating lease NA 5
Tools and Appliances 10 4
325


3. Property, Plant and Equipment (contd.)
(c) Depreciation (contd.)
Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for use
(disposed off).
Depreciation charge for the year is displayed as depreciation on the face of Consolidated Statement of Profit and Loss.
(d) Disposal
The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of property, plant and
equipment is included in consolidated statement of profit and loss when the item is derecognised.
Land or building held to earn rentals or for capital appreciation or both rather than for use in the production or supply of goods
or services or for administrative purposes; or sale in the ordinary course of business is recognised as Investment Property. Land
held for a currently undetermined future use is also recognised as Investment Property.
An investment property is measured initially at its cost. The cost of an Investment Property comprises its purchase price and
any directly attributable expenditure. After initial recognition, the Group chooses the cost model and carries the investment
properties at the cost less accumulated depreciation and accumulated impairment, if any.
(b) Depreciation
After initial recognition, the Group measures all of its investment properties in accordance with Ind AS 16’s requirements for
cost model. The depreciable amount of an item of investment properties is allocated on a systematic basis over its useful life.
The Group provides depreciation on the straight line method. The Group believes that straight line method reflects the pattern in
which the asset’s future economic benefits are expected to be consumed by the Group. The depreciation method is reviewed at
least at each financial year-end and, if there has been a significant change in the expected pattern of consumption of the future
economic benefits embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted
for as a change in an accounting estimate in accordance with Ind AS 8-Accounting Policies, Changes in Accounting Estimates
and Errors.
The depreciation charge for each period is generally recognised in the Consolidated Statement of Profit and Loss.
The residual value and the useful life of an asset is reviewed at least at each financial year-end and, if expectations
differ from previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors. The estimated useful lives for the current and
comparable periods are as follows:

– as per Companies Act, 2013 – as estimated by the Group
(c) Fair Value

Fair value of investment properties is based on a valuation by an independent valuer who holds a recognised and relevant
professional qualification and has recent experience in the location and category of the investment property being valued. The
fair value of investment property is disclosed in the Note 4.
(d) Gain or loss on Disposal
Any gain or loss on disposal of an Investment Property is recognised in the Consolidated Statement of Profit and Loss.
An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are initially measured at
its cost and then carried at the cost less accumulated impairment, if any.
Research and Development
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge
and understanding. Expenditure incurred on research of an internal project is recognised as an expense in Consolidated
Statement of Profit and Loss, when it is incurred.
Development is the application of research findings or other knowledge to a plan or design for the production of new or
substantially improved materials, devices, products, processes, systems or services before the start of commercial production
or use. An intangible asset arising from development is recognised if, and only if, the following criteria are met:
(a) it is technically feasibile to complete the intangible asset so that it will be available for use or sale.
(b) the Group intends to complete the intangible asset and use or sell it.
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5. Other Intangible Assets (contd.)
(a) Recognition and Measurement contd.)
(c) the Group has ability to use or sell the intangible asset.
(d) the Group can demonstrate how the intangible asset will generate probable future economic benefits.
(e) the Group has adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset.
(f) the Group has ability to measure reliably the expenditure attributable to the intangible asset during its development.
Expenditure on research activities is recognised in Consolidated Statement of Profit and Loss as incurred.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset
to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in
Consolidated Statement of Profit and Loss as incurred.
(c) Amortisation
The Group amortises Other Intangible Assets on the straight line method. The Group believes that straight line method reflects
the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The amortisation method
is reviewed at each financial year-end and, if there has been any significant change in the expected pattern of consumption of
the future economic benefits embodied in the asset, the method is changed to reflect the changed pattern. Such a change is
accounted for as a change in accounting estimate in accordance with Ind AS 8- Accounting Policies, Changes in Accounting
Estimates and Errors.
from previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Ind AS 8 -
Accounting Policies, Changes in Accounting Estimates and Errors. The estimated useful lives as estimated by management are
as follows:
Useful Lives (in years)

Asset Class
– as estimated by the Group
Software 3-5
Non-Compete 5
Brand and Technical Knowhow 5-10
Customer Relationships 5
6. Non-current assets or disposal group held for sale

Non-current assets, or disposal groups comprising assets and liabilities are classified as held for sale if it is highly probable that they
will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any
resultant loss on a disposal group is allocated first to goodwill, and then to remaining assets and liabilities on pro rata basis, except
that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, and biological assets, which
continue to be measured in accordance with the Group’s other accounting policies. Losses on initial classification as held for sale and
subsequent gains and losses on re-measurement are recognised in Consolidated Statement of Profit and Loss.
Once classified as held-for-sale, then Property, Plant & Equipment, Investment Property and Other Intangible Assets are no longer
required to be amortised or depreciated.
7.
Employee Benefits
(a) Short-term Employee Benefits:
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognised for the amount expected to be paid e.g., under short-term cash bonus, if the Group has a
present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount
of obligation can be estimated reliably.
(b) Post-Employment Benefits:

Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate
entity and will have no legal or constructive obligation to pay further amounts.
(i) Provident and Family Pension Fund

The eligible employees of the Group are entitled to receive post employment benefits in respect of provident and family
pension fund, in which both the employees and the Group make monthly contributions at a specified percentage of the
employees’ eligible salary (currently 12% of employees’ eligible salary). The contributions are made to the provident fund
managed by the trust set up by the Group, or to the Regional Provident Fund Commissioner (RPFC) which are charged
to the Consolidated Statement of Profit and Loss as incurred.
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(b) Post-Employment Benefits: (contd.):
In respect of contribution to RPFC, the Group has no further obligations beyond making the contribution, and hence, such
employee benefit plan is classified as Defined Contribution Plan. The Group’s contribution is recognised as an expense in
the Consolidated Statement of Profit and Loss.
In respect of contribution to the trust set up by the Group, since the Group is obligated to meet interest shortfall, if any,
with respect to covered employees, such employee benefit plan is classified as Defined Benefit Plan. Any obligation in this
respect is measured on the basis of independent actuarial valuation.
(ii) Superannuation
The eligible employees of the Group are entitled to receive post employment benefits in respect of superannuation fund in
which the Group makes annual contribution at a specified percentage of the employees’ eligible salary (currently 15% of
employees’ eligible salary). The contributions are made to the Life Insurance Corporation of India (LIC). Superannuation
is classified as Defined Contribution Plan as the Group has no further obligations beyond making the contribution. The
Group’s contribution is recognised as an expense in the Consolidated Statement of Profit and Loss.

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s net obligation in
respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the
current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit
method. When the calculation results in a potential asset for the Group, the recognised asset is limited to the present value
of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan
(‘the asset ceiling’). In order to calculate the present value of economic benefits, consideration is given to any minimum funding
requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised in OCI. The Group determines
the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used
to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset),
taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and
benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in Consolidated
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service
(‘past service cost’ or ‘past service gain’) or the gain or loss on curtailment is recognised immediately in profit or loss. The Group
recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Gratuity
The Group has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides
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 or part thereof in excess of six months. Vesting
occurs upon completion of five years of service. The Group has obtained insurance policies with the Life Insurance Corporation
of India (LIC) and makes an annual contribution to LIC for amounts notified by LIC. The Group accounts for gratuity benefits
payable in future based on an independent external actuarial valuation carried out at the end of the year using the projected
unit credit method. Actuarial gains and losses are recognised as Other Comprehensive Income or Loss.
Provident Fund Trust
In respect of contribution to the trust set up by the Group, since the Group is obligated to meet interest shortfall, if any, with
respect to covered employees, such employee benefit plan for eligible employees is classified as Defined Benefit Plan. Any
obligation in this respect is measured on the basis of independent actuarial valuation.
(c) Retirement Benefits to Executive Directors of Holding Company
The liability for special retirement benefit to the Executive Directors of Holding Company who became entitled prior to the
discontinuation of the policy, is recognised in the balance sheet at its present value of the defined benefit obligation at the end of
the reporting period. The defined benefit obligation is calculated annually by actuaries using the projected united credit method.
The present value of the said obligation is determined by discounting the estimated future cash outflows, using market yields of
government bonds that have tenure approximating the tenures of the related liability.
The interest expense is calculated by applying the discount rate to the defined benefit liability. The interest expense on the
defined benefit liability is recognised in the Consolidated Statement of Profit and Loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the
Consolidated Statement of Changes in Equity and in the Consolidated Balance Sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.
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7.
Employee Benefits (contd.)
(d) Other Long-term Employee Benefits – Compensated Absences:
The Group provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate
leave subject to certain limits for future encashment/availment. The Group makes provision for compensated absences based on
an independent actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in the Consolidated
(e) Share Based Payments
Employees of the Holding Company receive remuneration in the form of share-based payments in consideration of the services
rendered. Under the equity settled share based payment, the fair value on the grant date of the awards given to employees is
recognised as ‘employee benefit expenses’ with a corresponding increase in equity over the vesting period. The fair value of the
options at the grant date is calculated by an independent valuer basis Black Scholes model and Monte Carle model. At the end
of each reporting period, apart from the non-market vesting condition, the expense is reviewed and adjusted to reflect changes
to the level of options expected to vest. When the options are exercised, the Company issues fresh equity shares.
8.Inventories
(a) Measurement of Inventory
The Group measures its inventories at the lower of cost and net realisable value.
(b) Cost of Inventories
The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to their present location and condition.
The costs of purchase of inventories comprise the purchase price, import duties and other taxes (other than those subsequently
recoverable by the entity from the tax authorities), and transport, handling and other costs directly attributable to the acquisition
of finished goods, materials and services. Trade discounts, rebates and other similar items are deducted in determining the
costs of purchase.
The costs of conversion of inventories include costs directly related to the units of production and a systematic allocation of fixed
and variable production overheads that are incurred in converting materials into finished goods.
Other costs are included in the cost of inventories only to the extent that they are incurred in bringing the inventories to their
present location and condition.
The cost of inventories is assigned by weighted average cost formula. The Group uses the same cost formula for all inventories
having a similar nature and use to the Group.
(c) Net Realisable Value
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale. Net realisable value is ascertained for each item of inventories with reference
to the selling prices of related finished products.
The practice of writing inventories down below cost to net realisable value is consistent with the view that assets should not
be carried in excess of amounts expected to be realised from their sale or use. Inventories are usually written down to net
realisable value item by item. Estimates of net realisable value of finished goods and stock-in-trade are based on the most
reliable evidence available at the time the estimates are made, of the amount the inventories are expected to realise. These
estimates take into consideration fluctuations of price or cost directly relating to events occurring after the end of the period to
the extent that such events confirm conditions existing at the end of the period. Materials and other supplies held for use in the
production of inventories are not written down below cost if the finished products in which they will be incorporated are expected
to be sold at or above cost. However, when a decline in the price of materials indicates that the cost of the finished products
exceeds net realisable value, the materials are written down to net realisable value.
Amount of any reversal of write-down of inventories shall be recognised as an expense as when the event occurs.
A new assessment is made of net realisable value in each subsequent period. When the circumstances that previously caused
inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realisable value
because of changed economic circumstances, the amount of the write-down is reversed.
(d) Valuation of Spare parts, stand-by equipments and servicing equipments
Spare parts, stand-by equipment and servicing equipment are recognised as Property, Plant and Equipment if and only if it is
probable that future economic benefits associated with them will flow to the Group and their cost can be measured reliably.
Otherwise such items are classified and recognised as Inventory.
9. Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash equivalents are held
for the purpose of meeting short-term cash commitments rather than for investment or other purposes. For an investment to qualify
as a cash equivalent it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in
value. Therefore, an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less
from the date of acquisition. For the purpose of Cash Flow Statement, Cash and Cash Equivalents includes Bank overdrafts which
are repayable on demand.
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10. Government Grants
Government grants are assistance by government in the form of transfers of resources to the Group in return for past or future
compliance with certain conditions relating to the operating activities of the Group. Government grants are not be recognised until
there is reasonable assurance that the Group will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised in Statement of Profit and Loss on a systematic basis over the periods in which the Group
recognises as expenses the related costs for which the grants are intended to compensate.
11. Provisions and Contingent Liabilities

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.
Warranties
A provision for warranties is recognised when the underlying products or services are sold. The provision is based on technical
evaluation, historical warranty data and a weighting of all possible outcomes by their associated probabilities.
Restructuring
A provision for restructuring is recognised when the Group has approved a detailed formal restructuring plan, and the restructuring
either has commenced or has been announced publicly.
Onerous contracts
A contract is considered to be onerous when the expected economic benefits to be derived by the Group from the contract are lower
than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the
present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
Before such a provision is made, the Group recognises any impairment loss on the assets associated with that contract.
12. Revenue Recognition

Sale of Goods
Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which
the Group expects to receive in exchange for those goods.
Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on
dispatch/delivery.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, rebates, scheme
allowances,price concessions, incentives, and returns, if any, as specified in the contracts with the customers. Revenue excludes
taxes collected from customers on behalf of the government. Accruals for discounts/incentives and returns are estimated (using the
most likely method) based on accumulated experience and underlying schemes and agreements with customers. Due to the short
nature of credit period given to customers, there is no financing component in the contract.
Interest Income
Interest income is recognised using the effective interest method as set out in Ind AS 39 - Financial Instruments: Recognition and
Measurement, when it is probable that the economic benefits associated with the transaction will flow to the Group and the amount of
the revenue can be measured reliably. The effective interest method is a method of calculating the amortised cost of a financial asset
or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over
the relevant period.
Royalty Income
Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreement when it is probable that
the economic benefits associated with the transaction will flow to the Group and the amount of the revenue can be measured reliably.
Dividend Income
Dividend income is recognised when right to receive payment is established and it is probable that the economic benefits associated
with the transaction will flow to the Group and the amount of the revenue can be measured reliably.
13. Foreign Currency Transactions
Functional currency is the currency of the primary economic environment in which the Group operates whereas presentation currency
is the currency in which the financial statements are presented. Indian Rupee is the functional as well as presentation currency for
the Group.
A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign currency amount
the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
At the end of each reporting period, foreign currency monetary items are translated using the closing rate whereas non-monetary
items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the
transaction; and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was measured.
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13. Foreign Currency Transactions (contd.)
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at
which they were translated on initial recognition during the period or in previous Consolidated Financial Statements are recognised
in the Consolidated Statement of Profit and Loss in the period in which they arise. When a gain or loss on a non-monetary item is
recognised in Other Comprehensive Income, any exchange component of that gain or loss is recognised in Other Comprehensive
Income. Conversely, when a gain or loss on a non-monetary item is recognised in Consolidated Statement of Profit and Loss, any
exchange component of that gain or loss is recognised in Consolidated Statement of Profit and Loss.
14. Taxation
Income tax
Income tax comprises current and deferred tax. It is recognised in Consolidated Statement of Profit and Loss except to the extent that
it relates to a business combination or to an item recognised directly in equity or in other comprehensive income.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected
to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws)
enacted or substantively enacted by the reporting date.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax is not recognised for:
a. temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss at the time of the transaction;
b. taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can
be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case
of a history of recent losses, the Group recognises a deferred tax asset only to the extent that it has sufficient taxable temporary
differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset
can be realised. Deferred tax assets – unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced
to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled,
based on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at
the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle
current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
15. Lease
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-
value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the
underlying assets.
(i) Right-of-use Assets (ROU Assets)

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of
the assets, as follows:
Leasehold land 90 to 99 years
Buildings 2 to 10 years
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject
to impairment. Refer to the accounting policies in note 19 Impairment of non-financial assets.
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15. Lease (contd.)
(ii) Lease Liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments
to be made over the lease term. The lease payments include fixed payments (including insubstance fixed payments) less any
lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be
exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the
option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they
are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating
the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because
the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes
to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset.
Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified
as financing cash flows.
(iii) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those
leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also
applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value.
Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over
the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified
as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred
in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease
term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
16. Financial Instruments
(a) Recognition and initial Measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and
financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss
(FVTPL), transaction costs that are directly attributable to its acquisition or issue.
(b) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at
— amortised cost;
— Fair Value through Other Comprehensive Income (FVOCI) – debt investment;
— Fair Value through Other Comprehensive Income – equity investment; or
— FVTPL
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Group changes its
business model for managing financial assets.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
— the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
— the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent
changes in the investment’s fair value in OCI (designated as FVOCI – equity investment). This election is made on an investment‑
by‑ investment basis.
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16. Financial Instruments (contd.)
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
Financial Assets: Subsequent Measurement and Gains and Losses
Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognised in Consolidated Statement
of profit and loss.
Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective
interest method. The amortised cost is reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment are recognised in Consolidated
Statement of Profit and Loss. Any gain or loss on derecognition is recognised in
Consolidated Statement of Profit and Loss.
Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income under the
effective interest method, foreign exchange gains and losses and impairment are
recognised in Consolidated Statement of profit and loss. Other net gains and losses
are recognised in OCI. On derecognition, gains and losses accumulated in OCI are
reclassified to profit or loss.
Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognised as
income in profit or loss unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses are recognised in OCI and are not
reclassified to profit or loss.
Financial Liabilities: Classification, Subsequent Measurement and Gains and Losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is
classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL
are measured at fair value and net gains and losses, including any interest expense, are recognised in Consolidated Statement
of profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognised in Consolidated Statement of profit and loss. Any gain
or loss on derecognition is also recognised in Consolidated Statement of profit and loss.
(c) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it
transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks
and rewards of ownership and does not retain control of the financial asset.
If the Group enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or
substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.
Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Group also derecognises a financial liability when its terms are modified and the cash flows under the modified terms
are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The
difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms
is recognised in Consolidated Statement of profit and loss.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the
Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to
realise the asset and settle the liability simultaneously.
(e) Derivative Financial Instruments

The Group uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risk. Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered and are
subsequently re-measured at fair value. Any changes therein are recognised in the Consolidated Statement of profit and loss.
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17. Borrowing Cost
The Group capitalises borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
as part of the cost of that asset. The Group recognises other borrowing costs as an expense in the period in which it incurs them.
Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds including exchange
differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
18. Earnings Per Share

Basic earnings per share
The Group calculates basic earnings per share amounts for profit or loss attributable to ordinary equity holders and, if presented,
Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders (the numerator) by the weighted
average number of ordinary shares outstanding (the denominator) during the period.
The weighted average number of ordinary shares outstanding during the period and for all periods presented shall be adjusted for
events, other than the conversion of potential ordinary shares, that have changed the number of ordinary shares outstanding without
a corresponding change in resources.
Diluted earnings per share

The Group calculates diluted earnings per share amounts for profit or loss attributable to ordinary equity holders and, if presented,
For the purpose of calculating diluted earnings per share, the Group adjusts profit or loss attributable to ordinary equity holders, and
the weighted average number of shares outstanding, for the effects of all dilutive potential ordinary shares, if any.
For the purpose of calculating diluted earnings per share, the weighted average number of ordinary shares calculated for calculating
basic earnings per share and adjusted the weighted average number of ordinary shares that would be issued on the conversion of all
the dilutive potential ordinary shares into ordinary shares. Dilutive potential ordinary shares are deemed to have been converted into
ordinary shares at the beginning of the period or, if later, the date of the issue of the potential ordinary shares.
19. Measurement of Fair Values

A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-
financial assets and liabilities.
The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that
has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to
the Chief Financial Officer.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as
broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the
third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value
hierarchy in which the valuations should be classified.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. If the inputs used
to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is
categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change
has occurred.
20. Impairment Loss

Impairment of Financial Assets
The Group recognises loss allowances for expected credit losses on:
— financial assets measured at amortised cost; and
— financial assets measured at FVOCI- debt investments.
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit‑ impaired. A financial asset
is ‘credit‑ impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset
have occurred.
334


20. Impairment Loss (contd.)
In accordance with Ind AS 109, the Group follows ‘simplified approach’ for recognition of impairment loss allowance on trade
receivables. The application of simplified approach does not require the Group to track changes in credit risk. Rather, it recognises
impairment loss allowance based on liftime expected credit loss at each reporting date, right from its initial recognition.
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect
of recovery. This is generally the case when the Group determines that the debtor does not have assets or sources of income that
could generate sufficient cash flows to repay the amounts subject to the write‑ off. However, financial assets that are written off could
still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.
Impairment of Non Financial Assets
An impairment loss is the amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable
amount. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposal and its value
in use. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Value in use is based on the estimated future cash flows, discounted to their present
value using a pre-tax discount rate.
The Group assesses at the end of each reporting period whether there is any indication that an asset is impaired. In assessing whether
there is any indication that an asset may be impaired, the Group considers External as well as Internal Source of Information. If any such
indication exists, the Group estimates the recoverable amount for the individual asset. If, and only if, the recoverable amount of an asset
is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss, unless the asset is carried at revalued amount in accordance with another Standard.
If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the
cash-generating unit to which the asset belongs (the asset’s cash-generating unit). A cash-generating unit is the smallest identifiable
group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
The Group recognises impairment loss for a cash-generating unit if, and only if, the recoverable amount of the cash-generating unit
is less than the carrying amount of the cash-generating unit. The Group allocates impairment loss of cash-generating units first to the
carrying amount of goodwill allocated to the cash-generating units, if any, and then, to the other assets of the cash-generating units
pro rata on the basis of the carrying amount of each asset in the cash-generating unit. These reductions in carrying amounts shall be
treated as impairment losses on individual assets and recognised accordingly.
21. Business Combinations

Business combinations (other than common control business combinations)
In accordance with Ind AS 103, the Group accounts for these business combinations using the acquisition method when control is
transferred to the Group. The consideration transferred for the business combination is generally measured at fair value as at the date the
control is acquired (acquisition date), as are the net identifiable assets acquired. Any goodwill that arises is tested annually for impairment.
Any gain on a bargain purchase is recognised in OCI and accumulated in equity as capital reserve if there exists clear evidence of the
underlying reasons for classifying the business combination as resulting in a bargain purchase; otherwise the gain is recognised directly in
equity as capital reserve. Transaction costs are expensed as incurred, except to the extent related to the issue of debt or equity securities.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships with the acquiree. Such
amounts are generally recognised in profit or loss.
Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that
meets the definition of a financial instrument is classified as equity, then it is not re-measured subsequently and settlement is accounted
for within equity. Other contingent consideration is remeasured at fair value at each reporting date and changes in the fair value of the
contingent consideration are recognised in the consolidated statement of profit and loss. The valuation team regularly reviews significant
unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure
fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that these valuations
meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.
If a business combination is achieved in stages, any previously held equity interest in the acquiree is re-measured at its acquisition
date fair value and any resulting gain or loss is recognised in the consolidated statement of profit and loss or OCI, as appropriate.
Common control transactions
Business combinations involving entities that are controlled by the Group are accounted for using the pooling of interests method as follows:
(i) The assets and liabilities of the combining entities are reflected at their carrying amounts.
(ii) No adjustments are made to reflect fair values, or recognise any new assets and liabilities. Adjustments are only made to
harmonise accounting policies.
(iii) The financial information in the financial statements in respect of prior periods is restated as if the business combination had
occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination.
However, where the business combination had occurred after that date, the prior period information is restated only from that date.
(iv) The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding
balance appearing in the financial statements of the transferee or is adjusted against general reserve.
(v) The identity of the reserves are preserved and the reserves of the transferor become reserves of the transferee.
(vi) The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form
of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and is presented
separately from other capital reserves.
335

2. Property, Plant and Equipment ` in Crores
Additions/ Deductions/ Translation Additions/ Deductions/ Translation
1st April, 31st March, 1st April, 31st March, 31st March,
Adjustments Adjustments Difference Adjustments Adjustments Difference
2022 2023 2022 2023 2023
Freehold Land ....................................... 120.85 2.01 — (0.59) 122.27 — — — — — 122.27

(120.72) (0.11) — (0.02) (120.85) — — — — — (120.85)
Buildings................................................. 901.86 86.01 — (2.37) 985.50 202.02 27.73 — — 229.75 755.75
(795.28) (109.74) — 3.16 (901.86) (177.28) (25.14) 0.00 0.40 (202.02) (699.84)
Plant and Equipments............................ 1338.59 114.10 1.35 (2.62) 1448.72 536.44 65.82 0.88 (1.92) 599.46 849.26
(1281.14) (60.20) (0.90) 1.85 (1338.59) (476.56) (60.83) (0.83) 0.12 (536.44) (802.15)
Furniture and Fixtures............................ 24.79 0.85 — (0.25) 25.39 18.51 1.17 — (0.13) 19.55 5.84
(23.84) (1.02) (0.01) 0.06 (24.79) (17.42) (1.17) — 0.08 (18.51) (6.28)
Vehicles.................................................. 6.37 0.49 0.36 (0.35) 6.15 5.09 0.51 0.36 (0.32) 4.92 1.23
(7.73) (0.11) (1.60) (0.13) (6.37) (5.89) (0.31) (1.17) (0.06) (5.09) (1.28)
Office Equipments.................................. 19.05 1.37 0.02 (0.50) 19.90 15.17 1.40 0.01 (0.31) 16.25 3.65
(17.47) (1.69) (0.01) 0.10 (19.05) (13.88) (1.35) 0.00 0.06 (15.17) (3.88)
Computers............................................... 53.67 6.53 0.01 (0.05) 60.14 41.78 4.43 — (0.04) 46.17 13.97
(52.45) (8.13) (6.70) 0.21 (53.67) (44.77) (3.93) (6.70) 0.22 (41.78) (11.89)
Assets for Scientific Research*................ 78.87 0.87 0.12 — 79.62 23.78 3.13 0.01 (0.04) 26.86 52.76
(78.28) (0.59) 0.00 — (78.87) (20.68) (3.10) 0.00 0.00 (23.78) (55.09)
Assets on Operating Lease 376.04 40.48 6.55 0.02 409.99 303.70 30.71 6.55 0.06 327.92 82.07
(Refer Note 2.6)......................................
(351.79) (31.57) (7.27) 0.05 (376.04) (281.90) (29.07) (7.27) 0.00 (303.70) (72.34)
Colourant Machine.............................. 1.07 0.62 1.00 0.15 0.84 — — — — — 0.84
(0.71) (0.59) — 0.23 (1.07) — — — — — (1.07)
Tools and Appliances.......................... 1.29 0.24 — (0.21) 1.32 0.58 0.32 — (0.18) 0.72 0.60
(0.94) (0.61) (0.19) 0.07 (1.29) (0.47) (0.28) — 0.17 (0.58) (0.71)
Total Tangible Assets........................... 2922.45 253.57 9.41 (6.77) 3159.84 1147.07 135.22 7.81 (2.88) 1271.60 1888.24
(2730.35) (214.36) (16.68) 5.58 (2922.45) (1038.85) (125.18) (15.97) 0.99 (1147.07) (1775.38)
* Net block includes Buildings ₹ 24.14 Crores (2021-2022 ₹ 24.58 Crores), Plant and Equipment ₹ 25.20 Crores (2021-2022 ₹ 26.76 Crores) and Furniture and
Fixtures ₹ 3.62 Crores (2021-2022 ₹ 3.75 Crores).
2.2 In above assets, net block for Plant and Machinery - ₹ 5.60 Crores (2021-22: ₹ 3.77 Crores) are being secured against the term loans from banks
(Refer Note 18).
2.3 In above assets, net block for Freehold Land - ₹ 12.48 Crores (2021-22: ₹ 1.99 Crores), Buildings - ₹ 16.15 Crores (2021-22: ₹ 5.59 Crores) are
being secured against the term loans from banks (Refer Note 21).
2.4. Nil amount of borrowing costs is capitalised during the financial year.
2.5. Nil amount of impairment loss is recognised during the financial year.
2.6. The Group has given Colour Dispenser Machines on operating lease to its dealers. The Group enters into three years cancellable lease agreements.
However, the corresponding lease rentals may be receivable for a shorter period or may be waived off. The minimum aggregate lease payments to be
received in future is considered as Nil. Accordingly, the disclosure of the present value of minimum lease payments receivable at the Balance Sheet
date is not made.
2.7. CWIP ageing schedule is not given as it is not material to the group i.e. it is not more than 10% of the respective balance sheet item in Consolidated
Financial Statements.
336

3. Right of Use Assets (ROU) ` in Crores

Translation Translation
Difference Difference
2022 2023 2022 2023 2023
Leasehold Land*............................... 82.21 — — -0.16 82.05 6.67 1.79 — -0.84 7.62 74.43
(83.48) — — (1.27) (82.21) (5.77) (1.14) (0.05) (0.19) (6.67) (75.54)
Buildings............................................ 152.07 42.13 11.55 -0.86 181.79 53.61 28.62 9.53 1.07 73.77 108.02
(112.56) (45.53) (5.83) (0.19) (152.07) (29.56) (28.46) (4.18) (0.23) (53.61) (98.46)
Total Right of Use Assets (ROU) 234.28 42.13 11.55 -1.02 263.84 60.28 30.41 9.53 0.23 81.39 182.45
(196.04) (45.53) (5.83) (1.46) (234.28) (35.33) (29.60) (4.23) (0.42) (60.28) (174.00)
` in Crores
1st April, Additions Deductions* 31st March, 1st April, Additions Deductions* 31st March, 31st March,
2022 2023 2022 2023 2023
Freehold Land ............................................... 0.07 — 0.04 0.03 — — — — 0.03

(0.07) (—) (—) (0.07) (—) (—) (—) (—) (0.07)
Leasehold Land.............................................. 0.01 — — 0.01 — — — — 0.01
(0.01) (—) (—) (0.01) (—) (—) (—) (—) (0.01)
Buildings ........................................................ 3.39 — 1.16 2.23 3.29 — 1.15 2.14 0.09
(3.39) (—) (—) (3.39) (3.29) (—) (—) (3.29) (0.10)
Total Investment Property........................... 3.47 — 1.20 2.27 3.29 — 1.15 2.14 0.13
(3.47) (—) (—) (3.47) (3.29) (—) (—) (3.29) (0.18)
4.4. D
uring the financial year, no rental income was generated from the investment properties whereas direct operating expenses of
₹ 0.21 Crores (2021-2022 ₹ 0.26 Crores) were incurred and recorded as expense in the Standalone Statement of Profit and Loss.
4.5. Total fair value of Investment Property is ₹ 729.88 Crores (2021-2022 ₹ 1354.98 Crores).
4.6. *Deduction represent transfer of asset value from investment property to asset held for sale head.
Fair Value hierarchy

The fair value of investment property has been determined by external independent property valuers, having appropriate recognised
professional qualification and recent experience in the location and category of the property being valued.
The fair value measurement for all of the investment property has been categorised as a level 3 fair value based on the inputs to the
valuation techniques used.
Description of Valuation Technique used:

The Group obtains Independent Valuations of its investment property. The fair value of the investment property have been derived
using the Direct Comparison Method. The direct comparison approach involves a comparison of the investment property to similar
properties that have actually been sold in arms-length distance from investment property or are offered for sale in the same region.
This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in an
open and competitive market, and is particularly useful in estimating the value of the land and properties that are typically traded on
a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that the comparable instances are located
in close proximity to the investment property; these instances have been assessed for their locational comparative advantages and
disadvantages while arriving at the indicative price assessment for Investment Property.
337

4. Investment Property (contd.)

4A. Asset held for Sale
` in Crores
Description 2022-2023 2021-2022
Freehold Land ........................................................................................................... 0.04 —

Buildings .................................................................................................................... 0.01 —
Total .......................................................................................................................... 0.05 —
During the year, The Holding Company has entered into Agreement to Sell with Shoden Developers Private Limited, a group company of House
of Hiranandani group (hereinafter referred as the “Purchaser”) for the Holding Company’s investment property at Kavesar, Thane for the total
consideration of ₹ 655 Crores against which the Company has received the advance of ₹ 162.11 Crores from the purchaser which has been
accounted as Advance received against Sale of Investment Property under Note 24 - Other Current Liabilities. The sale is subject to completion of
procedures and approvals as may be necessary in this regard. The transaction will be recognised as revenue during the period in which procedures
and approvals for the said property gets completed.
5. Goodwill and Other Intangible Assets

5A. Goodwill on Consolidation
` in Crores
Description As at Additions/ Deductions/ As at As at Additions/ Deductions/ As at As at

1st April, Adjustments Adjustments 31st March, 1st April, Adjustments Adjustments 31st March, 31st March,
2022 2023 2022 2023 2023
Goodwill.............................................................................................. 0.20 — — 0.20 — — — — 0.20

(0.20) — — (0.20) — — — — (0.20)
For KNP Japan Pvt Ltd....................................................................... 2.27 — — 2.27 — — — — 2.27

(2.27) — — (2.27) — — — — (2.27)
For Kansai Nerolac Paints (Bangladesh) Limited 17.31 — — 17.31 — — — — 17.31

(17.31) — — (17.31) — — — — (17.31)
Total Goodwill on consolidation..................................................... 19.78 — — 19.78 — — — — 19.78

(19.78) — — (19.78) — — — — (19.78)
5B. Other Intangible Assets

` in Crores
Description As at Additions/ Deduc- Trans- As at As at Additions/ Trans- As at As at

Deductions/
1st April, Adjust- tions/Ad- lation 31st March, 1st April, Adjust- lation 31st March, 31st March,
Adjustments
2022 ments justments Difference 2023 2022 ments Difference 2023 2023
Software........................................................................ 21.36 1.22 — -0.04 22.54 19.38 0.57 — 0.15 20.10 2.44
(19.69) (2.38) — (0.71) (21.36) (18.38) (1.12) — (0.12) (19.38) (1.98)
Customer Relationship.................................................. 29.33 — — — 29.33 19.92 5.86 — — 25.78 3.55

(29.33) — — — (29.33) (14.05) (5.87) — — (19.92) (9.41)
Brand and Technical Knowhow..................................... 20.29 4.00 — — 24.29 11.59 3.49 — -0.01 15.07 9.22
(20.29) — — — (20.29) (8.11) (3.47) — (0.01) (11.59) (8.70)
Non-Compete ............................................................... 22.64 — — — 22.64 15.91 4.53 — — 20.44 2.20

(22.64) — — — (22.64) (11.39) (4.53) — (0.01) (15.91) (6.73)
Total Other Intangible Assets..................................... 93.62 5.22 — -0.04 98.80 66.80 14.45 — 0.14 81.39 17.41
(91.95) (2.38) — (0.71) (93.62) (51.93) (14.99) — (0.12) (66.80) (26.82)
5.2. Nil amount of borrowing costs is capitalised during the current and comparative period.
5.3. Nil amount of impairment loss is recognised during the current and comparative period.
338

6. Non-current Investments
` in Crores
As at As at
Investments in Equity Instruments:

i. Others at Fair value through profit or loss
Quoted ............................................................................................................... 0.85 0.65
Unquoted............................................................................................................ 2.34 0.38
Investments in Debentures:
Quoted................................................................................................................ 0.04 0.05
Total Non-current Investments....................................................................... 3.23 1.08
Aggregate book value of quoted investments.................................................... 0.89 0.70
Aggregate market value of quoted investments................................................. 0.89 0.70
Aggregate amount of unquoted investments...................................................... 2.34 0.38
Aggregate amount of impairment in value of investments................................. Nil Nil
7. Other Financial Assets

` in Crores
As at As at
Security Deposits................................................................................................... 16.80 13.87
16.80 13.87
8. Other Non-current Assets

` in Crores
As at As at
Capital Advances................................................................................................... 28.27 56.16
Prepaid Expenses.................................................................................................. 31.46 8.27
Balances with Indirect Tax Authorities.................................................................... 28.58 23.21
88.31 87.64
9. Inventories
` in Crores
As at As at
Raw Materials............................................................................................................. 531.19 527.01
Packing Materials....................................................................................................... 22.61 22.94
Work-in-progress........................................................................................................ 143.28 142.74
Finished Goods.......................................................................................................... 929.08 849.06
Stock-in-trade............................................................................................................. 88.86 74.66
Stores and Spares...................................................................................................... 14.11 13.14
1729.13 1629.55
Inventories amounting to ₹ 66.44 Crores (2021-2022 ₹ 75.93 Crores) were hypothecated as security for Borrowings from Banks (Refer Note 21).
Nil amount of inventories were written down to net realisable value during the current and comparable period. Similarly, Nil amount of reversal of write
down was accounted during the current and comparable periods.
Cost of Inventory recognised as an expense during the year as per note 29 and 30.
339

10. Current Investments

` in Crores
As at As at
(A) Investments in Bonds at FVTPL (Quoted).......................................................... 11.53 9.52

(B) Mutual Funds at FVTPL (Unquoted)................................................................... 486.60 199.94
Total Current Investment (A + B)................................................... 498.13 209.46
Aggregate book value of quoted investments................................... 11.53 9.52

Aggregate market value of quoted investments............................... 11.53 9.52
Aggregate amount of unquoted investments.................................... 486.60 199.94
Aggregate amount of impairment in value of investments................ Nil Nil
11. Trade Receivables

` in Crores
As at As at
Secured, Considered Good......................................................... — —
Unsecured, Considered Good..................................................... 1,237.91 1,093.33
Significant Increase in Credit Risk............................................... — —
Credit Impaired............................................................................ 51.83 49.40
Loss Allowance............................................................................ (51.83) (49.40)
— —
1237.91 1093.33
Trade Receivables amounting to ₹ 102.22 Crores (2021-2022 ₹ 102.94 Crores) were hypothecated as security for Borrowings from
Banks (Refer Note 21)
Trade Receivables Ageing Schedule as at 31 March 2023

` in Crores
(i) Undisputed Trade receivables –
considered good .................................... 952.59 231.53 29.59 13.9 5.54 4.76 1,237.91
(ii) Undisputed Trade Receivables – which
have significant increase in credit risk.... — — — — — — —
(iii) Undisputed Trade Receivables – credit
impaired ................................................ — — — — — — —
(iv) Disputed Trade Receivables considered
good....................................................... — — — — — — —
(v)
Disputed Trade Receivables - which
(vi) Disputed Trade Receivables – credit
impaired ................................................ — — 1.6 18.19 6.22 25.82 51.83
340

11. Trade Receivables (contd.)

Trade Receivables Ageing Schedule as at 31 March 2022
` in Crores
(i) Undisputed Trade receivables –
considered good .................................... 836.21 209.32 20.13 14.03 11.75 1.89 1,093.33
(ii) Undisputed Trade Receivables – which
(iii) Undisputed Trade Receivables – credit
impaired ................................................ — — — — — — —
(iv) Disputed Trade Receivables considered
good ...................................................... — — — — — — —
(v) Disputed Trade Receivables - which
(vi) Disputed Trade Receivables – credit
impaired ................................................ — — 3.12 10.26 9.41 26.61 49.40
12. Cash and Cash equivalents

` in Crores
As at As at
Cash on hand............................................................................................................. 0.27 1.11
Cheques on hand....................................................................................................... 22.39 23.34
Banks balances.......................................................................................................... 76.95 52.59
Fixed Deposit with Bank with less than 3 month maturity.......................................... 5.00 —
104.61 77.04
13. Bank Balance other than Cash and cash equivalents

` in Crores
As at As at
Unpaid Dividend Accounts........................................................................................ 2.34 2.46
Fixed Deposit with Bank with more than 3 months but less than 12 month maturity......
19.91 26.50
22.25 28.96
14. Other Current Financial Assets

` in Crores
As at As at
Security Deposits.................................................................................................. 7.33 7.68
GST Incentive Receivable..................................................................................... 1.35 9.86
9.40 26.49
15. Other Current Assets

` in Crores
As at As at
Balances with Indirect Tax Authorities................................................................... 102.91 82.12
Trade Advances.................................................................................................... 59.14 56.19
Prepaid Expenses................................................................................................. 33.30 12.88
201.64 165.45
341

16. Share Capital

As at As at
1. Authorised Share Capital (₹ in Crores).............................................. 66.50 66.50
Par Value per Share (₹)..................................................................... 1 1
Number of Equity Shares................................................................... 66,50,00,000 66,50,00,000
2. Issued, Subscribed and Fully Paid up (₹ in Crores)........................... 53.89 53.89
Par Value per Share (₹)..................................................................... 1 1
Number of Equity Shares................................................................... 53,89,19,720 53,89,19,720
3. Details of Shareholders holding more than 5% of shares:
% No. of Shares % No. of Shares
Ultimate Holding Company:
Kansai Paint Co., Ltd., Japan....................................................... 74.99 40,41,35,898 74.99 40,41,35,898
4. Aggregated number of bonus share issued during the period of five
years immediately preceding the reporting date by capitalisation of
security premium reserve................................................................... Nil Nil
5. The Holding Company has issued one class of shares, i.e. equity
shares, which enjoys similar rights in respect of voting, payment of
dividend and repayment of capital. On winding up of the Company,
the holders of equity shares will be entitled to receive the residual
assets of the Company, remaining after distribution of all preferential
amounts in proportion to the number of equity shares held.
6. Reconciliation of the number of shares outstanding:
Number of shares at the beginning of the year.................................. 53,89,19,720 53,89,19,720
Issued during the year....................................................................... — —
Number of shares at the end of the year........................................... 53,89,19,720 53,89,19,720
7. Disclosure of Shareholding of Promoters:
Name of Promoter: Kansai Paint Co., Ltd., Japan
Details of shares held by promoters:
No. of shares at the beginning of the year......................................... 40,41,35,898 40,41,35,898
Change during the year..................................................................... — —
No. of shares at the end of the year................................................... 40,41,35,898 40,41,35,898
% of Total Shares............................................................................... 74.99 74.99
% change during the year.................................................................. — —
8. Capital Management:
For the purpose of the Group’s capital management, capital includes
issued equity share capital and all other equity reserves attributable
to the equity holders of the Group. The Group’s policy is to maintain
a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business.
Management monitors the return on capital, as well as the levels of
dividends to equity shareholders.
As at 31 March, 2023, the Group has only one class of equity shares. In
order to maintain or achieve an optimal structure, the Group allocates
its capital for distribution as dividend or re-investment into business
based on its long term financial plans.
The Group monitors capital using adjusted net debt to equity ratio.
For this purpose, adjusted net debt is defined as total debt less cash
and bank balances.
Non-current Borrowings....................................................................... 4.69 10.94
Current Borrowings.............................................................................. 155.30 192.06
Gross Debt ....................................................................................... 159.99 203.00
Less : Cash and Cash Equivalent........................................................ 104.61 77.04
Less : Other Bank Deposits.................................................................. 19.91 26.50
Adjusted Net Debt............................................................................... 35.47 99.46
Total Equity ........................................................................................ 4560.41 4151.51
Adjusted Net Debt - Equity Ratio.......................................................... 0.008 0.024
342

17. Other Equity

` in Crores
Share Foreign Total
Capital Securities General Retained Based Currency attributable to Attributable
Total
Balance as at 1st April, 2022.......... 0.30 12.56 488.51 3582.49 — (5.54) 4078.33 19.29 4097.62
Profit for the year............................ — — — 473.58 — — 473.58 (5.11) 468.47

Defined Benefit Liability............... — — — (0.04) — — (0.04) (0.18) (0.22)
Deferred Tax on Remeasurement
of Employee Defined Benefit
Liability......................................... — — — (0.05) — — (0.05) — (0.05)
Exchange differences on
translation of foreign operations.. — — — — — 10.42 10.42 — 10.42
Other Comprehensive Income,
(net of tax)...................................... — — — (0.09) — 10.42 10.33 (0.18) 10.15
Total Comprehensive Income for
the Year........................................... — — — 473.49 — 10.42 483.91 (5.29) 478.62
Capacity as Owners:
Issue of Share Capital.................... — — — — — — — 18.72 18.72
Dividends...................................... — — — (53.89) — — (53.89) (1.29) (55.18)
Share based payment expense....... — — — — 3.75 — 3.75 — 3.75
Non Controlling Interest.................. — — — (32.28) — — (32.28) (4.72) (37.00)
— — — (86.17) 3.75 — (82.42) 12.71 (69.71)
Balance as at 31st March, 2023..... 0.30 12.56 488.51 3,969.81 3.75 4.88 4,479.81 26.71 4506.52
` in Crores
Share Foreign Total
Capital Securities General Retained Based Currency attributable to Attributable Total
Balance as at 1st April, 2021............ 0.30 12.56 488.51 3504.18 — (6.54) 3999.01 36.28 4035.30
Profit for the year............................. — — — 358.86 — — 358.86 (15.71) 343.15

Defined Benefit Liability.............. — — — 3.18 — — 3.18 (0.13) 3.05
Deferred Tax on
Defined Benefit Liability............. — — — (0.84) — — (0.84) — (0.84)
Exchange differences
on translation of foreign
operations.................................. — — — — — 1.00 1.00 — 1.00
Other Comprehensive Income,
(net of tax)......................................... — — — 2.34 — 1.00 3.34 (0.13) 3.21
Total Comprehensive Income for
the Year........................................... — — — 361.20 — 1.00 362.20 (15.84) 346.36
Capacity as Owners:
Issue of share capital................ — — — — — — —
Dividends................................... — — — (282.89) — — (282.89) (1.15) (284.04)

Fair Value on Acquisition
attributable to NCI..................... — — — — — — — — —
Other Adjustments..................... — — — — — — — — —
— — — (282.89) — — (282.89) (1.15) (284.04)
Balance as at 31st March, 2022....... 0.30 12.56 488.51 3582.49 — (5.54) 4078.33 19.29 4097.62
343

17. Other Equity (contd.)

Analysis of Accumulated OCI, Net of Tax
` in Crores
Remeasurement of Employee Defined Benefit Liability As at As at
Opening Balance...................................................................................................... (8.72) (10.93)
Remeasurement of Employee Defined Benefit Liability, net of tax........................... (0.27) 2.21
Closing Balance ....................................................................................................... (8.99) (8.72)
` in Crores
Exchange differences on translation of foreign operations As at As at
Opening Balance...................................................................................................... (5.54) (6.54)
Exchange Difference on translation of foreign operations........................................ 10.42 1.00
Closing Balance ....................................................................................................... 4.88 (5.54)
Capital Reserve
Capital reserve includes profit on re-issue of forfeited shares.
Securities Premium
Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the
Companies Act, 2013.
General Reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution
in a given year is more than 10% of the paid-up capital of the Group for that year, then the total dividend distribution is less than the
total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer
a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the
general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
Share Based Payment Reserve
This represents the fair value of the stock options granted by the Holding Company under the Restricted Stock Unit Plan (‘RSU 2022
Plan’) accumulated over the vesting period. The reserve will be utilised on exercise of the options.
Foreign Currency Transaction Reserve
These comprise of all exchange differences arising from translation of financial statements of foreign subsidiaries.
Dividend
For the year 2021-2022, the Directors of the Holding Company had recommended and Shareholders had approved a final dividend of
100% (₹ 1 per share), which has been accounted in current year. In addition, the Holding Company had declared interim dividend of
125% (₹ 1.25 per share) paid on November 22, 2021.
The Board of the Holding Company has recommended dividend of 270% (₹ 2.70 per share) for the financial year ended March 31, 2023
as compared to total dividend of 225% (₹ 2.25 per share) declared last year.
The dividend proposed by the Directors is subject to approval of Shareholders at the annual general meeting. The proposed dividend
of ₹ 145.50 Crores (2021-2022 ₹ 53.89 Crores) have not been recognised as liabilities.
Issue of Bonus Shares
The Directors of the Holding Company has considered and approved issue of 1 bonus equity shares of face value of ₹ 1 each against
2 equity share of the face value of ₹ 1 each. This is subject to Holding Company’s shareholder’s approval. The approval of the
Shareholders for the issue of Bonus Shares will be obtained by means of postal ballot.
18. Non-Current Borrowings

` in Crores
As at As at
a. Term Loans from Banks*.................................................................................... 4.69 10.94
* Secured Loans from Bank at average interest rate of 9.50% (2021-2022: 8.15%)
secured by first charge of Plant and Equipments at the units for the purpose
of acquisition of assets under business combination repayable by quarterly
instalment from February 2021, where the last instalment is payable in November
2024. Current Maturities of these Term Loans is provided separately in Note 21.
4.69 10.94
19. Provisions
` in Crores
As at As at
Provision for Compensated Absences (Refer note 38)............................................ 0.22 —
Provision for Gratuity (Refer note 38)....................................................................... 1.41 —
Provision for Special Retirement Benefits - Directors (Refer note 38)..................... 21.13 22.27
22.76 22.27
344

20. Income Taxes

` in Crores
A. The major components of income tax expense for the year are as under:
(i) Income tax recognised in the Consolidated Statement of Profit and Loss
Current tax:
In respect of current year.............................................................................. 163.52 136.46
In respect of earlier years.............................................................................. (2.43) —
Deferred tax:
In respect of current year.............................................................................. 5.33 (3.20)
Income tax expense recognised in the Consolidated Statement of
Profit and Loss............................................................................................ 166.42 133.26
(ii) Income tax expense recognised in OCI
Deferred tax expense on remeasurements of defined benefit plans............. (0.05) (0.84)
Income tax expense recognised in OCI.................................................... (0.05) (0.84)
B. Reconciliation of tax expense and the accounting profit for the year
is as under:
Profit before tax................................................................................................... 634.88 476.41
Income tax expense calculated at 25.17% (2021-2022 @ 25.17%)................... 159.80 119.91
Tax effect on non-deductible expenses............................................................... 1.82 8.09
Effect of Income that is exempted from tax......................................................... (0.15) (0.28)
Impact of Tax on different rates on components................................................. 2.62 (0.64)
Impact of Tax due to loss in components............................................................ 5.29 12.04
Others................................................................................................................. (2.96) (5.86)
Total.................................................................................................................... 166.42 133.26
Tax expense as per Consolidated Statement of Profit and Loss................. 166.42 133.26

The tax rate used for reconciliation above is the corporate tax rate of 25.17% (2021-2022 25.17%) payable by corporate entities in
India on taxable profits under Indian tax law.
C. The major components of deferred tax (liabilities) / assets arising on account of timing differences are as follows:
` in Crores
Balance Statement of Balance
OCI
Particulars Sheet Profit & Loss Sheet
01.04.2022 2022-23 2022-23 31.03.2023
Difference between written down value / capital work in progress of
Property, Plant and Equipment as per the books of accounts and
Income Tax Act,1961........................................................................ (127.15) (7.67) — (134.82)
Tax adjustment on account on indexation of freehold land............. 19.47 1.78 — 21.25
Expense claimed for tax purpose on payment basis............................ 5.87 (1.13) — 4.74
Provision for doubtful debts and Advances..................................... 8.80 0.86 — 9.66
Remeasurement benefit of the employee defined benefit plans
through OCI..................................................................................... 2.08 — (0.05) 2.03
Deferred Tax on Distributable Accumulated Reserves of
Subsidiaries..................................................................................... (2.71) (0.07) — (2.78)
Deferred tax Liability due to Purchase Price Allocation Adjustment (15.45) 1.59 — (13.86)
Lease Rentals................................................................................. 3.13 0.63 — 3.76
Net fair value loss on investment through FVTPL........................... (0.57) (1.34) — (1.91)
MAT Credit Entitlement..................................................................... — 0.02 — 0.02
Deferred tax (expense) / income
Net Deferred tax liabilities............................................................ (106.49) (5.33) (0.05) (111.88)
345

20. Income Taxes (contd.)

` in Crores
Balance Statement of Balance
OCI
Particulars Sheet Profit & Loss Sheet
01.04.2021 2021-22 2021-22 31.03.2022
Difference between written down value / capital work in progress of
Property, Plant and Equipment as per the books of accounts and
Income Tax Act,1961 ...................................................................... (123.10) (4.05) — (127.15)
Tax adjustment on account on indexation of freehold land............ 17.44 2.03 — 19.47
Expense claimed for tax purpose on payment basis............................ 5.50 0.37 — 5.87
Provision for doubtful debts and Advances.................................... 7.77 1.03 — 8.80
Remeasurement benefit of the employee defined benefit plans
through OCI................................................................................... 2.92 — (0.84) 2.08
Deferred Tax on Distributable Accumulated Reserves of
Subsidiaries................................................................................... (2.71) — — (2.71)
Deferred tax Liability due to Purchase Price Allocation Adjustment..... (17.15) 1.70 — (15.45)
Lease Rentals................................................................................. 2.19 0.94 — 3.13
Net fair value loss on investment through FVTPL.............................. (1.75) 1.18 — (0.57)
Deferred tax (expense) / income
Net Deferred tax liabilities........................................................... (108.89) 3.20 (0.84) (106.49)
21. Borrowings
` in Crores
As at As at
From Banks
Term Loans*......................................................................................... 82.01 95.94
Overdraft #........................................................................................... 67.04 88.21
Current Maturities of Long-term Borrowings........................................ 6.25 6.25
155.30 190.40
* The Group has obtained at 8.50% - 10.30% (2021-2022 8.00% -
9.25%) term loans from bank to fund short-term fund requirement,
secured by personal guarantee of local directors incase of foreign
subsidiaries and hypothecation of trade receivable (Refer Note 11)
and inventories (Refer Note 9). These term loans are repayable
within 180 days from date of issue of such term loans.
#
The Group has obtained at 8.50% - 22.40% (2021-2022 7.00% -
9.00%) overdrafts and cash credit facilities from bank to fund working
capital requirements, secured by personal guarantee of local directors
incase of foreign subsidiaries, corporate guarantee by the Holding
Company (Refer Note 35), hypothecation of trade receivable(refer
Note 11) and inventories(Refer Note 9), pledging of Freehold Land and
Building(Refer Note 2.3). These facilities are repayable on demand.
From Other Body Corporate................................................................ — 1.66
To support the working capital requirement, the Group had obtained
short term loan carrying interest at Nil (2021-2022 - 10.30%). These
loans are repayable on demand.
155.30 192.06
346

22. Trade Payables

` in Crores
As at As at
Trade Payables
Total Outstanding dues of Micro Enterprises and Small Enterprises
(Refer Note 41)..................................................................................................... 90.81 102.37
Total Outstanding dues of creditors other than Micro Enterprises and Small
Enterprises*.......................................................................................................... 924.74 878.27
1015.55 980.64
* Includes Acceptances ₹ 54.31 Crores (2021-2022 ₹ Nil)

Trade Payable Ageing Schedule
As at 31 March 2023 ` in Crores
Particulars Outstanding for following periods from due date of payment
Unbilled Not Due Less than 1-2 2-3 More than Total
(i) MSME ........................................................... — 90.81 — — — — 90.81
(ii) Others .......................................................... 161.45 588.20 174.27 0.44 0.36 0.02 924.74
(iii) Disputed dues - MSME ............................... — — — — — — —
(iv) Disputed dues - Others .............................. — — — — — — —
As at 31 March 2022 ` in Crores

Particulars Outstanding for following periods from due date of payment
Unbilled Not Due Less than 1-2 2-3 More than Total
(i) MSME ........................................................... — 102.37 — — — — 102.37
(ii) Others .......................................................... 208.72 267.68 394.78 6.63 0.43 0.03 878.27
(iii) Disputed dues - MSME ............................... — — — — — — —
(iv) Disputed dues - Others .............................. — — — — — — —
23. Other Financial Liabilities

` in Crores
As at As at
Unclaimed/Unpaid Dividends*.................................................................................... 2.17 2.30
Trade Deposits........................................................................................................... 50.08 30.52
Creditors for Capital Goods @ (Refer Note 41) ........................................................ 17.24 19.97
Other Current Liabilities.............................................................................................. 0.25 0.19
69.74 52.98
* There are no amounts due and outstanding to be transferred to Investor Education and Protection Fund.
@ Includes Outstanding dues of Micro Enterprises and Small Enterprises ₹ 3.96 Crores (2021-2022 ₹ 3.73 Crores)
347

24. Other Current Liabilities

` in Crores
As at As at
Statutory Obligations*................................................................................................. 35.98 32.40
Trade Receivables with Credit Balance...................................................................... 17.67 18.77
Advance received against Sale of Land..................................................................... 162.11 —
215.76 51.17
* Includes payable toward VAT, GST, TDS and Employee Related Statutory Obligations.
25. Provisions
` in Crores
As at As at
Provision for Compensated Absences (Refer note 38)................................ 16.08 14.82
Provision for Gratuity (Refer note 38)........................................................... 2.76 —
Provision for Special Retirement Benefits - Directors (Refer note 38)......... 1.94 1.94
Provision for Indirect Taxes:
Opening Balance.................................................................................... 3.87 3.87
Add: Provision during the year............................................................... — —
Less: Utilisation / reversal during the year.............................................. 1.43 0.01
2.44 3.86
23.22 18.69
26. Current Tax Liabilities (Net)

` in Crores
As at As at
Current Tax Liabilities (Net)...................................................................................... — 4.99
— 4.99
348

27. Revenue from Operations

` in Crores

Sale of Products
Sales ....................................................................................... 8,483.19 7,126.54
Less: Discounts and Rebates ................................................. 977.97 844.16
Total Sale of Products........................................................... 7,505.22 6,282.38
Other Operating Revenues
Sale of Scrap........................................................................... 28.12 22.96
GST Incentives......................................................................... 2.47 9.86
Others...................................................................................... 6.92 54.15
37.51 86.97
Revenue from Operations..................................................... 7,542.73 6,369.35
27.1. Disaggregation of revenue from contracts with customers

The Group derives revenue from sales of products from following major segments:
` in Crores

1) Revenue from contracts with customers:
Sale of products (Transferred at point in time)
Manufacturing
India.................................................................................................................. 6,645.47 5,469.20
Asia (Other than India)..................................................................................... 346.48 341.04
(A).................................................. 6,991.95 5,810.24
Trading
India.................................................................................................................. 503.58 465.25
Asia (Other than India)..................................................................................... 9.69 6.89
(B).................................................. 513.27 472.14
(C) = (A) + (B)................................ 7,505.22 6,282.38
2) Other Operating Revenue
Sale of scrap and empties................................................................................ 28.12 22.96
GST Incentive................................................................................................... 2.47 9.86
Others............................................................................................................... 6.92 54.15
(D).................................................. 37.51 86.97
Total Revenue (C) + (D)............... 7,542.73 6,369.35
Major Product lines
Paints................................................................................................................ 7,505.22 6,282.38
7,505.22 6,282.38
Sales by performance obligations
Upon delivery......................................................................................................... 7,505.22 6,282.38
7,505.22 6,282.38
Reconciliation of revenue from contract with customer
Revenue from contract with customer as per the contract price............................ 8,483.19 7,126.54
Adjustments made to contract price on account of :-
a) Discounts/ Rebates/ Incentives........................................................................ (977.97) (844.16)
b) Other Operating Revenue................................................................................ 37.51 86.97
Revenue from contract with customer as per the Consolidated Statement

of Profit and Loss................................................................................................ 7542.73 6,369.35
349

28. Other Income

` in Crores
Dividend Income
Dividend from Equity Shares recognised through FVTPL........ 0.03 0.03
Interest Income
Interest on Loans and Deposit at amortised cost..................... 2.26 1.40
Interest on Bonds recognised through FVTPL......................... 0.58 1.19
2.84 2.59
Profit on Sale of Current Investments (Net).................................. 7.32 14.29
Fair Value Gain on Financial Instruments recognised through
FVTPL.......................................................................................... 6.55 —
Other Non-operating Income
Profit on Sale of Property, Plant and Equipment (Net)............. 0.32 0.60
Foreign Exchange Gain (Net).................................................. — 0.40
Insurance Claims Received..................................................... 5.01 3.88
Miscellaneous Income............................................................. 3.91 3.62
9.24 8.50
25.98 25.41
29. Cost of Materials Consumed

` in Crores
Raw Material Consumed
Opening Stock......................................................................... 527.01 394.19
Add: Purchase......................................................................... 4341.95 3938.30
Less: Sales.............................................................................. 9.08 20.85
4328.69 3784.63
Packing Material Consumed
Opening Stock......................................................................... 22.94 18.85
Add: Purchase......................................................................... 559.66 538.03
559.99 533.94
4888.68 4318.57
30. Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-trade

` in Crores
Opening Stock
Finished Goods......................................................................... 849.06 615.06
Work-in-progress....................................................................... 142.74 100.55
1066.46 773.65
Less: Closing Stock
Finished Goods......................................................................... 929.08 849.06
Work-in-progress....................................................................... 143.28 142.74
1161.22 1,066.46
(94.76) (292.81)
31. Employee Benefits Expense

` in Crores
Salaries and Wages.................................................................................................... 327.60 314.33
Contribution to Provident and Other Funds (Refer Note 38)....................................... 26.30 24.36
Share based Payments to Employees (Refer Note 45).............................................. 3.75 —
Staff Welfare Expense................................................................................................. 19.40 16.89
377.05 355.58
350

32. Finance Cost

` in Crores
Interest on Bank Borrowings....................................................................................... 18.58 17.30
Net Foreign Exchange Loss on borrowings (considered as finance cost).................. — 0.80
Interest on Lease Liability (Refer Note 44).................................................................. 10.42 10.49
29.00 28.59
33. Depreciation and Amortisation

` in Crores
Depreciation on Property, Plant and Equipment.......................................................... 135.22 125.18
Amortisation on Other Intangible Assets..................................................................... 14.45 14.99
Amortisation on Right of use assets (ROU) (Refer Note 44)....................................... 30.41 29.60
180.08 169.77
34. Other Expenses

` in Crores
Consumption of Stores and Spare Parts..................................................................... 33.07 29.61
Power and Fuel........................................................................................................... 89.64 71.19
Repairs to Buildings.................................................................................................... 0.64 0.56
Repairs to Machinery.................................................................................................. 16.35 14.44
Freight and Forwarding Charges................................................................................. 368.44 343.21
Advertisement and Sales Promotion........................................................................... 300.15 242.77
Rent............................................................................................................................. 17.81 15.34
Rates and Taxes.......................................................................................................... 2.88 3.17
Insurance..................................................................................................................... 15.00 12.81
Miscellaneous Expenses............................................................................................. 239.43 204.01
1083.41 937.11
34.1. Payments to Auditors'

` in Crores
Auditors’ Remuneration excluding GST (Included in Miscellaneous Expenses in
Note 34)
As Auditor
Statutory Audit ....................................................................................................... 0.53 0.47
Report under Section 44AB of the Income-tax Act, 1961...................................... 0.04 0.05
Limited Review of Quarterly Results...................................................................... 0.26 0.20
In other capacity
Certification........................................................................................................... 0.08 0.08
Other Matters........................................................................................................ 0.15 0.19
Reimbursements of Expenses................................................................................ 0.03 0.01
1.09 1.00
351

35. Contingent Liabilities and commitments (to the extent not provided for)
` in Crores
A. Claims against the Group not acknowledged as debt:
Excise and Service Tax......................................................................................... 8.59 8.59
Sales Tax............................................................................................................... 18.26 18.26
Income Tax............................................................................................................ 3.16 3.33
Customs Duty....................................................................................................... 0.61 0.61
The Group has made adequate provisions in the accounts for claims against the
Group related to direct and indirect taxes matters, except for certain claims not
acknowledged as debts, totaling to ₹ 30.62 Crores (2021-2022 ₹ 30.79 Crores)
from the Excise / Service Tax Authorities, in respect of disallowance of Excise /
Service Tax Cenvat Credit. In addition, the Group is subject to other legal
proceedings in respect of other matters arisen in the ordinary course of business.
The Group’s management is of the opinion that ultimate liability in respect of these
litigations shall not exceed the amount provided in books of account, and shall not
have any material adverse effect on the Group’s operation and financial position.
B. Commitments:
Estimated amount of contracts remaining to be executed on capital account and
not provided for (Net of advances)........................................................................ 36.36 63.93
The Holding Company has entered into Share holding agreement (SHA) with
M/s Amplus Energy Solutions Private Limited to source green power through
Group Captive arrangement................................................................................. — 2.05
Corporate guarantee by Holding Company
Stand by Letter of Credit (SBLC) given to Bank for loan taken by Kansai Nerolac
Paints (Bangladesh) Limited – Subsidiary Company.............................................. 22.76 25.83
Corporate guarantee given to Bank for loan taken by Kansai Nerolac Paints
(Bangladesh) Limited – Subsidiary Company........................................................ 9.01 81.01
Corporate guarantee given to Bank for Kansai Paints Lanka (Private) Limited -
Subsidiary Company............................................................................................. 8.73 8.92
Others Commitment
Unexpired Letter of Credit..................................................................................... 28.77 32.79
Bank Guarantee.................................................................................................... 6.80 2.41
Disputed Claims.................................................................................................... 0.27 —
143.32 247.73
C. Contribution to Provident Fund as per Supreme Court Judgment
There are numerous interpretative issues relating to the Supreme Court (SC)
judgment dated February 28, 2019 on Provident Fund (PF) on the inclusion
of allowances for the purpose of PF contribution as well as its applicability of
effective date. The impact is not expected to be material as per the assessment
made by the Group.
36. Earnings Per Equity Share

Basic Earnings per Equity Share (in ₹)
Numerator:
Profit attributable to Equity Shareholders (` in Crores)........................................... 473.58 358.86
Denominator:
Weighted Average Number of ordinary shares at the beginning and end of
the year.................................................................................................................. 53,89,19,720 53,89,19,720
Basic Earnings per Equity Share (in `).................................................................... 8.79 6.66
Diluted Earnings per Equity Share (in ₹)
Numerator:
Profit attributable to Equity Shareholders (₹ in Crores).......................................... 473.58 358.86
Denominator:
Weighted Average Number of ordinary shares and dilutive shares........................ 53,93,32,196 53,89,19,720
Diluted Earnings per Equity Share (in ₹).................................................................. 8.78 6.66
352

37. Related Party Disclosures

A related party is a person or entity that is related to the entity that is preparing its Financial Statements
(a) A person or a close member of that person’s family is related to a reporting entity if that person:
(i) has control or joint control of the reporting entity;
(ii) has significant influence over the reporting entity; or
(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
(b) An entity is related to a reporting entity if any of the following conditions applies:
(i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow
subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of
which the other entity is a member).
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related
to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting
entity.
(vi) The entity is controlled or jointly controlled by a person identified in (a).
(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of
the entity (or of a parent of the entity).
(viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting
entity or to the parent of the reporting entity.
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related
party, regardless of whether a price is charged.
Parent and ultimate controlling entity

Activities Incorporation
2023 2022
Kansai Paint Co., Ltd................. 74.99 74.99 Parent and Manufacturing Japan
ultimate Paints
controlling
entity
Kansai Paint Co., Ltd., Japan is the immediate and ultimate holding company of Kansai Nerolac Paints Limited
Fellow Subsidiary Companies
Name Type Principal Activities Place of Incorporation

Kansai Paint Philippines Inc....................... Fellow Subsidiary Manufacturing Paints and Philippines
other related products
Kansai Paint Asia Pacific SDN.BHD........... Fellow Subsidiary Manufacturing Paints and Malaysia
Kansai Plascon Kenya Ltd......................... Fellow Subsidiary Manufacturing Paints and Kenya
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Key management personnel includes (1) Mr. P. P. Shah, Chairman (2) Mr. Anuj Jain, Managing Director w.e.f 1st April 2022
(Whole-time Director upto 31st March 2022) (3) Mr. N. N. Tata, Director upto 10th August 2022 (4) Ms. Sonia Singh,
Director (5) Mr. Bhaskar Bhat, Director w.e.f 10th August 2022 (6) Mr. P. D. Pai, CFO and (7) Mr. G. T. Govindarajan,
Company Secretary.
Other entities where significant influence exist

— Kansai Nerolac Paints Limited Provident Fund
353

Transaction with Related Party:

` in Crores
Sale of finished goods/Intermediates
— Kansai Paint Philippines Inc. ............................ Fellow Subsidiary 2.82 2.93
— Kansai Plascon Kenya Ltd................................. Fellow Subsidiary — 1.05
Dividend Paid
— Kansai Paint Co., Ltd., Japan............................ Parent and ultimate 40.41 212.17
controlling entity
Transfer under license agreements
Royalty Expense
controlling entity
Technical Fees Including Reimbursement of
Expenses
controlling entity
— Kansai Paint Asia Pacific SDN.BHD.................. Fellow Subsidiary 0.01 —
Reimbursement of Expenses Recovered
— Kansai Paint Co., Ltd., Japan ................................ Parent and ultimate — 0.55
controlling entity
Contributions during the year (includes
Employees' share and contribution)
— Kansai Nerolac Paints Limited Provident Fund. Other entities 1.38 1.37
Amount of outstanding balances, including
commitments in settlement
Receivable as at Year End
— Kansai Paint Co., Ltd., Japan............................ Parent and ultimate — 0.55
controlling entity
— Kansai Paint Philippines Inc. ............................ Fellow Subsidiary 0.44 0.35
— Kansai Plascon Kenya Ltd................................. Fellow Subsidiary — 0.40
Payable as at Year End
controlling entity
— Kansai Paint Asia Pacific SDN.BHD.................. Fellow Subsidiary 0.01 —
354

Transaction with Related Party:

` in Crores
Key Management Personnel
— Employee Benefits #..........................................
Mr. H M Bharuka

Vice Chairman and Managing Director — 16.93
(Upto 31 March 2022)*
Mr. Anuj Jain,
3.34 2.36
Managing Director (W.e.f. 1 April 2022)
Mr. P. D. Pai
1.67 1.38
Chief Financial Officer
Mr. G. T. Govindarajan
0.89 0.70
Company Secretary
— C
ommission and Fee for attending Board /
Committee Meetings to Independent
Directors............................................................
Mr. P. P. Shah, Chairman 0.45 0.44

Mr. N. N. Tata, Independent Director
0.37 0.39
(Upto 10th August 2022)
Ms. Sonia Singh, Independent Director 0.40 0.35
Mr. Bhaskar Bhat, Independent Director
0.03 —
(W.e.f 10th August 2022)
Related Party Transactions:

Related party transactions were made on terms equivalent to those that prevail in an arm’s length transactions.
Outstanding balances at the year-end are unsecured, interest free and will be settled in cash.
#
Includes commission paid for the previous year, Holding Company’s contribution to Provident Fund and
Superannuation Fund and excludes accrual for commission for the current year and restricted stock units (RSU)
granted during the year worth of ₹ 6.11 Crores (2021-2022 ₹Nil) to KMP’s in accordance with the Kansai Nerolac
Paints Limited - Restricted Stock Unit Plan (‘RSU 2022 Plan’), However, such RSU’s units would vest after fulfillment
of vesting conditions in accordance with the RSU Plan 2022.
* Employee Benefits to Mr. H M Bharuka include retirement benefits of ₹ 8.24 Crores towards Gratuity, Leave
Encashment and Ex-gratia.
As the future liabilities for gratuity, leave encashment and Director pension along with medical benefits are provided on
an actuarial valuation basis for the Holding Company as a whole, the amount pertaining to individual is not ascertainable
and therefore not included above.
355


A. Defined Contribution Plans:
Contribution to defined contribution plan, recognised in the Consolidated Statement of Profit and Loss under Groups
Contribution to Provident Fund and Other Funds in Employee Benefits Expenses for the year are as under:
` in Crores
Employer's contribution to Regional Provident Fund Commissioner................... 6.20 5.43
Employer's contribution to Family Pension Fund................................................ 4.73 4.58
Employer's contribution to Superannuation Fund................................................ 8.26 7.55
B. Defined Benefit Plans:
a. Gratuity
The following tables setout the funded status of the gratuity plans and the amounts recognised in the Group’s Financial
Statements as at 31 March, 2023 and 31 March, 2022:
` in Crores
Change in Defined Benefit Obligation
Defined Benefit Obligation at the beginning.............................................. 42.62 48.76
Interest Expense....................................................................................... 2.86 3.03
Benefit Payments from Plan Assets.......................................................... (3.80) (11.14)
Remeasurements - Actuarial (gains)/ losses............................................. 1.01 (2.28)
Defined Benefit Obligation at the end........................................................ 46.68 42.62
Change in Fair Value of Plan Assets

Fair Value of Plan Assets at the beginning................................................ 47.55 45.06
Interest Income.......................................................................................... 3.06 2.66
Employer Contributions............................................................................. 2.46 3.95
Benefit Payments from Plan Assets.......................................................... (10.47) (4.68)
Increase / (Decrease) due to Plan combination........................................ (0.06) (0.21)
Remeasurements – Return on plan assets excluding amounts included in
interest income........................................................................................... (0.03) 0.77
Fair Value of Plan Assets at the end.......................................................... 42.51 47.55
Net Asset/(Liability).................................................................................... (4.17) 4.93
Components of Defined Benefit Cost recognized in the Consolidated Statement of Profit and Loss under
Employee Benefit Expenses:
` in Crores
Net Interest Cost....................................................................................... (0.20) 0.37
Defined Benefit Cost recognised in the Consolidated Statement of Profit
and Loss................................................................................................... 3.79 4.62
356


Components of Defined Benefit Cost recognised in the Statement of Other Comprehensive Income:
` in Crores
Actuarial (gains) / losses on Defined Benefit Obligation........................... 1.01 (2.28)
(Return)/loss on plan assets excluding amounts included in the net
interest on the net defined benefit liability/(asset)..................................... 0.03 (0.77)
Defined Benefit Cost recognised in the Statement of Other Comprehensive
Income....................................................................................................... 1.04 (3.05)
The assumptions used to determine net periodic benefit cost are set out below:
Particulars Valuation Date
Discount Rate............................................................................................ 7.51% to 23.00% 7.00% to 14.00%
Salary Escalation....................................................................................... 7.50% to 15.00% 5.00% to 12.00%
Weighted average duration of the defined benefit obligation (years).......... 9.13 10.59
Sensitivity Analysis:
The sensitivity analyses are based on a change in a significant assumption, keeping all other assumptions constant.
The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely
that changes in assumptions would occur in isolation from one another.
Discount Rate, Salary Escalation Rate and Withdrawal Rate are significant actuarial assumptions. The change in the
Present Value of Defined Benefit Obligation for a change of 100 Basis Points from the assumed assumption is given below:
` in Crores
Scenario 31 March, 2023
st
31 March, 2022
st
Under Base Scenario................................................................................ 45.55 42.60

Salary Escalation - Up by 1%.................................................................... 49.75 45.44
Salary Escalation - Down by 1%............................................................... 41.94 40.03
Withdrawal Rates - Up by 1%................................................................... 45.47 39.81
Withdrawal Rates - Down by 1%............................................................... 45.59 40.02
Discount Rates - Up by 1%....................................................................... 42.00 40.21
Discount Rates - Down by 1%................................................................... 49.76 45.29
Maturity Profile of Defined Benefit Obligations

Mortality Table 31st March, 2023 31st March, 2022
Attained Age Male Female Male Female
20 0.09% 0.09% 0.09% 0.09%
25 0.09% 0.09% 0.09% 0.09%
30 0.10% 0.10% 0.10% 0.10%
35 0.12% 0.12% 0.12% 0.12%
40 0.17% 0.17% 0.17% 0.17%
45 0.26% 0.26% 0.26% 0.26%
50 0.44% 0.44% 0.44% 0.44%
55 0.75% 0.75% 0.75% 0.75%
60 1.12% 1.12% 1.11% 1.11%
357


Assumptions regarding future mortality experience are set in accordance with the published statistics by the Life
Insurance Corporation of India.
The Holding Company contributes all ascertained liabilities towards gratuity to the fund maintained by the Life Insurance
Corporation of India. Other companies in the Group have not funded their liabilities.
The Group expects to contribute ₹ 2.70 Crores (2021-2022 Nil) to the fund during the subsequent accounting year.
b. Provident fund (Managed by the Trust set up by the Group)

The Holding Company has contributed ₹ 1.38 Crores (2021-2022 ₹ 1.37 Crores) to the Provident Fund Trust. The Holding
Company has an obligation to fund any shortfall on the yield of the trust’s investments over the guaranteed interest rates
on an annual basis. These administered rates are determined annually predominantly considering the social rather than
economic factors and in most cases the actual return earned by the Holding Company has been higher in the past years.
The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of
India and based on the below provided assumptions there is no shortfall.
The details of fund and plan asset position are given below:
` in Crores
Particulars As at As at
Plan assets at period end, at fair value...................................................... 51.05 74.11
Present value of benefit obligation at period end........................................ 49.35 71.65
Asset recognised in balance sheet............................................................. Nil Nil
The plan assets have been primarily invested in government securities.
Assumptions used in determining the present value obligation of the interest rate guarantee under the Deterministic
Approach:
Discount Rate (%).................................................................................... 7.30 6.63
Guranteed Interest Rate (%).................................................................... 8.15 8.10
Expected Average Remaining Working Lives of Employees (Years)........ 8.30 11.07
The Group other than the Holding Company in India contributes all ascertained liabilities towards provident fund as per
rules and regulations inforce in respective countries amounting to ₹ 1.35 Crores (2021-2022: ₹ 1.31 Crores) to respective
provident authority.
C. Retirement Benefits to Executive Directors
` in Crores
Opening defined benefit obligation ................................................................... 24.22 —
Current service cost ......................................................................................... — 0.05
Past Service Cost.............................................................................................. — 24.46
Interest Expense............................................................................................... 1.63 —
Remeasurement (gain)/loss.............................................................................. (0.82) —
Benefits paid ..................................................................................................... (1.95) 0.29
Closing defined benefit obligation ..................................................................... 23.08 24.22
358


C. Retirement Benefits to Executive Directors (contd.)
Components of cost of Retirement Benefits to Executive Directors recognized in the Consolidated Statement of Profit
and Loss under Employee Benefit Expenses:
` in Crores
Current Service Cost.................................................................................. — 0.05
Net Interest Cost......................................................................................... 1.63 —
Defined Benefit Cost recognised in the Statement of Profit and Loss ....... 1.63 0.05
Components of cost of Retirement Benefits to Executive Director recognized in the Consolidated Statement of Other
Comprehensive Income:
` in Crores

Actuarial (gains) / losses on Defined Benefit Obligation .................................. (0.82) —
Defined Benefit Cost recognised in the Statement of Other Comprehensive
Income............................................................................................................... (0.82) —
D. Compensated Absences:
In FY 2022-2023, increase in provision for compensated absences for the year is ₹ 1.48 Crores. (In FY 2021-2022
₹ 0.27 Crores has been recognised in the Consolidated Statement of Profit and Loss as an expense for compensated absences)
39. Segment Reporting

The Management Committee of the Group, approved by the Board of Directors and Audit Committee performs the function of
allotment of resources and assessment of performance of the Group. Considering the level of activities performed, frequency of
their meetings and level of finality of their decisions, the Group has identified that Chief Operating Decision Maker function is being
performed by the Management Committee. The financial information presented to the Management Committee in the context of
results and for the purposes of approving the annual operating plan is on a consolidated basis for paints and other related products
of the Group. As the Management Committee monitors the business activity as a single business segment viz. ‘Paints’ and the sales
substantially being in the domestic market, the financial statement are reflective of the information required by Ind AS 108 “Operating
Segments”.
As the Group mainly caters to the domestic market in India, the total overseas turnover is 4.75% (2021-2022 5.54%) of the total
turnover of the group, which is insignificant and hence is not seperately monitored by the Management Committee.
40. Financial Instruments: Fair values and Risk Management

(A) Accounting Classifications and Fair Values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy.
` in Crores
Year At FVTPL Level 1 Level 2 Level 3 Total
Financial Assets measured at Fair Value
Non-current Assets: Investments (Note 6)........... 2023 3.23 0.89 — 2.34 3.23
2022 1.08 0.70 — 0.38 1.08
Current Assets: Investments (Note 10)................ 2023 498.13 — 498.13 — 498.13
2022 209.46 — 209.46 — 209.46
There have been no transfers between Level 1 and Level 2 during the year and previous year.
359


(B) Financial Risk Management
The Group has exposure to the following risks arising from financial instruments:
— Credit Risk
— Liquidity Risk
— Market Risk
(i) Risk Management Framework

Risk Management Committee oversees the management of these risks. Management is supported by Risk
Management Committee that advises on financial risks and the appropriate financial risk governance framework for
the Group. The Risk Management Committee provides assurance to the management that Group’s risk activities are
governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the Group’s policies and risk objectives.
The Group’s Risk Management Policies are established to identify and analyses the risks faced by the Group to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk Management Policies
and Systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group,
through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.
(ii) Credit Risk

Credit Risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Group’s receivables from customers, loans and
investments in debt securities. The carrying amounts of financial assets represent the maximum credit risk exposure.
Trade Receivables:
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Risk
Management Committee has established a credit policy under which each new customer is analysed individually for
creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s
review includes financial statements, credit agency information, industry information and in some cases bank
references. Sales limits are established for each customer and reviewed constantly. Any sales exceeding those limits
require approval from the management.
The concentration of credit risk is limited due to the fact that the customer base is large. There is no customer
representing more than 5% of the total balance of trade receivables. For trade receivables, as a practical expedient,
the Group computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on
historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking
estimates.
` in Crores
Movement in expected credit loss allowance on trade receivable 31 March, 2023

st
31 March, 2022
st
Balance as beginning of the year................................................................ 49.40 46.59

Loss allowance measured at lifetime expected credit losses...................... 2.43 2.81
Balance at the end of the year...................................................................... 51.83 49.40
Financial Instruments and Cash Deposits

Credit risks from balances with banks and financial institutions is managed by the Group’s Treasury Department in
accordance with the Group’s policy. Investments of surplus funds are made only with approved counterparties and within
credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate
financial loss through counterparty’s potential failure to make payments.
(iii) Liquidity Risk

Liquidity risk the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as
far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
360


(iii) Liquidity Risk (contd.)
Maturities of Financial Liabilities:
The table below analyse the Group’s financial liabilities into relevant maturing grouping based on their contractual
maturities:
` in Crores
On Upto 3 months 6 months 1 year to 3 years

Year ended Total
demand 3 months to 6 months to 1 year 3 years and above
Borrowings 31-03-2023 67.02 1.56 68.58 18.13 4.69 — 159.98

(Current and
Non‑current)......... 31-03-2022 88.21 5.92 94.81 3.12 10.94 — 203.00
Trade Payables.... 31-03-2023 — 1,015.55 — — — — 1,015.55
31-03-2022 — 980.64 — — — — 980.64
Other Financial 31-03-2023 52.50 17.24 — — — — 69.74

Liabilities...............
31-03-2022 33.01 19.97 — — — — 52.98
For maturity profile of lease liabilities, refer note 44
(iv) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market price comprises three types of risks: interest rate risk, currency risk and other price risk,
such as equity price risk and commodity price risk. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimizing the return. In respect of monetary
assets and liabilities denominated in foreign currencies, the Group’s policy is to ensure that its net exposure is kept
to an acceptable level.
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded
price. Other price risk arises from financial assets such as investments in equity instruments, debentures and bonds.
Since the investments in equity instruments and debentures is not material and bonds being debt instruments, the
exposure to risk of changes in market rates is minimal. The details of such investments in equity instrument and
debentures is given in Note 6 and details of investments in bonds is given in Note 10.
Exposure to Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The Group enters into forward exchange contracts to hedge against its foreign currency exposures
relating to the recognised underlying liabilities and firm commitments. The Group's policy is to hedge its exposures above
predefined thresholds from recognised liabilities and firm commitments that fall due on timely basis. The Group does not
enter into any derivative instruments for trading or speculative purposes. The carrying amounts of the Group's foreign
currency denominated monetary items are as follows:
` in Crores
Financial Assets EURO JPY BDT USD GBP Total
Trade Receivables............................. 31-03-2023 — — — 2.59 2.59
31-03-2022 — — — 2.02 2.02
Financial Liabilities
Trade Payables 31-03-2023 (2.62) (29.79) — (114.71) (0.12) (147.24)
(Net of Hedge)................................... 31-03-2022 (1.08) (10.57) (0.02) (53.93) — (65.60)
Net exposure to Foreign Currency 31-03-2023 (2.62) (29.79) — (112.12) (0.12) (144.65)
Risk (Liabilities)................................. 31-03-2022 (1.08) (10.57) (0.02) (51.34) — (63.01)
361


(iv) Market Risk (contd.)
Foreign Currency Sensitivity Analysis
The following table demonstrate the sensitivity to a reasonable possible change in CHF, EURO, JPY, BDT, GBP and USD
exchange rates, with all other variable held constant.
` in Crores
Profit or Loss Equity Net of Tax
Strengthening Weakening Strengthening Weakening
31st March, 2023
EURO (5% movement)....................................... 0.13 (0.13) 0.10 (0.10)
JPY (5% movement)........................................... 1.49 (1.49) 1.11 (1.11)
BDT (5% movement).......................................... — — — —
USD (5% movement)......................................... 5.61 (5.61) 4.19 (4.19)
GBP (5% movement).......................................... 0.01 (0.01) 0.00 (0.00)
31st March, 2022

EURO (5% movement)....................................... (0.05) 0.05 (0.04) 0.04
JPY (5% movement)........................................... (0.53) 0.53 (0.40) 0.40
BDT (5% movement).......................................... (0.00) 0.00 (0.00) 0.00
USD (5% movement)......................................... (2.57) 2.57 (1.92) 1.92
(v) There are no outstanding Forward Foreign Exchange Contracts entered into by the Group during current and
previous year.
(vi) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is
the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash
flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of
fluctuations in the interest rates.
Exposure to interest rate risk
Group’s interest rate risk arises from borrowings and finance lease obligations. Borrowings issued at fixed rates exposes
to fair value interest rate risk. The interest rate profile of the Group’s interest-bearing financial instruments as reported to
the management of the Group is as follows:
` in Crores
As at As at
Fixed-Rate Instruments
Financial Assets......................................................................................... 24.91 26.50
Financial Liabilities..................................................................................... 138.19 188.50
Net Liabilities/ (Assets)............................................................................... 113.28 162.00
Variable-Rate Instruments
Financial Liabilities..................................................................................... 21.79 14.50
21.79 14.50
Fair value sensitivity analysis for fixed-rate instruments

The Group does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.
362


(vi) Interest Rate Risk (contd.)
Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / (decreased)
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency
exchange rates, remain constant.
100 bps increase 100 bps decrease

31 March 2023
st
Variable-Rate Instruments......................................................................... 0.11 0.11

Cash Flow Sensitivity (net)..................................................................... 0.11 0.11
31 March 2022
st
Variable-Rate Instruments......................................................................... 0.20 0.20

Cash Flow Sensitivity (net)..................................................................... 0.20 0.20
(C) Valuation techniques and significant unobservable inputs
Type Valuation technique Significant unobservable Inter-relationship between

inputs
Other Non-current Discounted cash flows: The valuation – Forecast Annual revenue Generally, a changes in the
assets: model considers the present value of growth annual revenue growth rate is
Investment expected receipt/payment discounted – Forecast EBITDA growth margin accompanied similar change
measured at using appropriate discounting rates. – Risk adjustment discounted rate in EBITDA margin.
amortised cost
Current The fair values of investments in Not applicable Not applicable

investments – in mutual fund units is based on the net
mutual funds asset value (‘NAV’) as stated by the
issuers of these mutual fund units in
the published statements as at Balance
Sheet date. NAV represents the price
at which the issuer will issue further
units of mutual fund and the price at
which issuers will redeem such units
from the investors
The Group determined the fair value measurements of investments – unquoted categorised in Level 2 based on price agreed
in a sale transaction between unrelated parties.
Carrying amounts of cash and cash equivalents, trade receivables, loans and trade payables as at 31st March, 2023 and
31st March, 2022 approximate the fair value. Difference between carrying amounts and fair values of bank deposits, earmarked
balances with banks, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost
is not significant in each of the years presented.
363

41. isclosure under the Micro, Small and Medium Enterprises Development Act, 2006 are provided as under for the year 2022-2023
D
and 2021-2022 to the extent the Group has received intimation from the “Suppliers” regarding their status under the Act.
` in Crores
As at As at
(i) Principal amount and the interest due thereon remaining unpaid to each supplier
at the end of each accounting year (but within due date as per the MSMED Act)
Principal amount due to micro and small enterprise (Refer Note 22 and 23)..... 90.81 106.10
Interest due on above......................................................................................... — —
(ii) Interest paid by the Group in terms of Section 16 of the Micro, Small and Medium
Enterprises Development Act, 2006, along-with the amount of the payment
made to the supplier beyond the appointed day during the period....................... — —
(iii) Interest due and payable for the period of delay in making payment (which have
been paid but beyond the appointed day during the period) but without adding
interest specified under the Micro, Small and Medium Enterprises Act, 2006...... — —
(iv)
The amount of interest accrued and remaining unpaid at the end of each
accounting year..................................................................................................... — —
(v) Interest remaining due and payable even in the succeeding years, until such
date when the interest dues as above are actually paid to the small enterprises. — —
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information
collected by the Management. This has been relied upon by the auditors.
42. Impairment of Goodwill (Refer with Note 5A)

(a) Kansai Nerolac Paints (Bangladesh) Limited, Bangladesh
The business was taken over by Kansai Nerolac Paints Limited on 17th July 2018. The recoverable amount of this CGU
was based on fair value less costs of disposal, estimated using discounted cash flows. The fair value measurement was
categorised as a Level 3 fair value based on inputs in the valuation technique used.
The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key
assumptions represent management's assessment of future trends in the relevant industries and have been based on historical
data from both external and internal sources.

Discount Rate...................................................................................................... 15.87% 10.58%
Terminal Value Growth Rate................................................................................ 3.00% 3.00%
Sales Growth Rate.............................................................................................. 15.00 - 12.00% 23.00 - 12.00%
The discount rate for 2022-2023 was post tax measure estimated based on the weighted-average cost of capital, with the
possible debt leveraging of 50.00% (2021-2022 - 40.00%) at a risk free interest rate of 8.45% (2021-2022 - 7.10%).
The cash flow projections include specific estimates for five years and a terminal growth rate thereafter. The terminal growth
rate has been determined based on management’s estimate of the long-term business growth rate, consistent with the
assumptions that a market participant would make.
Sales growth rate has been considered based on past performance duly adjusted with future growth as envisaged by the
management.
With regard to assessment of value in use, no reasonably possible change in any of the above key assumptions would cause
the carrying amount of the CGU's to exceed their recoverable amount.
(b) KNP Japan Private Limited

The business was taken over by Kansai Nerolac Paints Limited on 1st October 2012. The recoverable amount of this CGU
was based on fair value less costs of disposal, estimated using discounted cash flows. The fair value measurement was
categorised as a Level 3 fair value based on inputs in the valuation technique used.
The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key
assumptions represent management's assessment of future trends in the relevant industries and have been based on historical
data from both external and internal sources.
364

42. Impairment of Goodwill (Refer with Note 5A) (contd.)

(b) KNP Japan Private Limited (contd.)
Discount Rate..................................................................................................... 12.29% 12.29%
Terminal Value Growth Rate............................................................................... 5.00% 5.00%
Sales Growth Rate.............................................................................................. 12.00% 12.00%
The discount rate for 2022-2023 was post tax measure estimated based on the weighted-average cost of capital with the no
debt leveraging as the company is debt-free.
The cash flow projections include specific estimates for five years and a terminal growth rate thereafter. The terminal growth
rate has been determined based on management’s estimate of the long-term business growth rate, consistent with the
assumptions that a market participant would make.
Sales growth rate has been considered based on past performance duly adjusted with future growth as envisaged by the
management.
With regard to assessment of value in use, no reasonably possible change in any of the above key assumptions would cause
the carrying amount of the CGU's to exceed their recoverable amount.
43. Disclosures as required under Schedule III to the Companies Act 2013 with respect to
Consolidated Financial Statements.
(a) As at and for the year ended 31 March, 2023
Name of the entity As at For the year ended For the year ended For the year ended
in the Group 31 March, 2023 31 March, 2023 31 March, 2023 31 March, 2023
Net assets* Share in profit or loss Share in other Share in total

comprehensive income comprehensive income
As % of ` in Crores As % of ` in Crores As % of ` in Crores As % of ` in Crores

consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
Holding Company
Kansai Nerolac Paints Limited.... 101.03% 4,607.38 103.83% 486.43 1.58% 0.16 101.67% 486.59
Subsidiaries (Group's share)..
Indian
Nerofix Private Limited............. 0.26% 11.79 0.02% 0.10 (0.39%) (0.04) 0.01% 0.06
Foreign
KNP Japan Private Limited ...... 1.30% 59.34 1.50% 7.04 — — 1.47% 7.04
Kansai Paints Lanka Private
Limited ..................................... 0.44% 20.25 (0.74%) (3.48) 0.20% 0.02 (0.72%) (3.46)
Kansai Nerolac Paints
(Bangladesh) Limited............... (0.47%) (21.41) (2.83%) (13.27) (4.04%) (0.41) (2.86%) (13.68)
Total Eliminations/
Adjustments............................ (2.56%) (116.94) (1.78%) (8.35) — — (1.74%) (8.35)
operations............................... — — — — 102.66% 10.42 2.18% 10.42
Total ........................................ 100.00% 4,560.41 100.00% 468.47 100.00% 10.15 100.00% 478.62
365

43. Disclosures as required under Schedule III to the Companies Act 2013 with respect to
Consolidated Financial Statements. (contd.)
(b) As at and for the year ended 31 March, 2022
As at For the year ended For the year ended For the year ended
31 March, 2022 31 March, 2022 31 March, 2022 31 March, 2022
Net assets* Share in profit or loss Share in other Share in total

comprehensive income comprehensive income
Name of the entity
in the Group As % of ` in Crores As % of ` in Crores As % of ` in Crores As % of ` in Crores
consolidated consolidated consolidated consolidated
net assets profit or loss other total
comprehensive comprehensive
income income
Holding Company
Kansai Nerolac Paints Limited 100.47% 4,170.93 109.09% 374.33 78.19% 2.51 108.80% 376.84
Subsidiaries (Group's share)
Indian
Nerofix Private Limited ........... 0.28% 11.73 (1.08%) (3.69) — — (1.07%) (3.69)
Foreign
KNP Japan Private Limited ..... 1.35% 56.12 2.65% 9.08 — — 2.62% 9.08
Kansai Paints Lanka Private

Limited .................................... 0.09% 3.84 (5.14%) (17.64) 0.00% — (5.09%) (17.64)
Kansai Nerolac Paints

(Bangladesh) Limited.............. (1.00%) (41.64) (6.53%) (22.41) (9.35%) (0.30) (6.56%) (22.71)
Total Eliminations/
Adjustments............................. (1.19%) (49.46) 1.01% 3.48 — — 1.00% 3.48
operations ............................... — — — — 31.15% 1.00 0.29% 1.00
Total ........................................ 100.00% 4,151.51 100.00% 343.15 100.00% 3.21 100.00% 346.36
* Net assets = total assets minus total liabilities
44. Disclosure of Lease as per Ind AS 116

The following is the summary of practical expedients elected on application:
(i) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
(ii) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on
the date of initial application.
(iii) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
(iv) Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is
applied only to contracts that were previously identified as leases under Ind AS 17.
The weighted average incremental borrowing rate applied to lease liabilities as at 31 March 2023 is 8.50% (31st March 2022: 8.50%)
366

44. Disclosure of Lease as per Ind AS 116 (contd.)

The changes in the carrying value of right of use (ROU) assets for the year ended 31 March 2023 and 31 March 2022 are disclosed
in Note 3.
` in Crores
Particulars Amount as at Amount as at
ROU Balance at the beginning of the year............................................................... 174.00 160.71
Additions (Refer Note 3)............................................................................................... 42.13 45.53
Deletions (Net off accumulated depreciation) (Refer Note 3)....................................... (2.02) (1.60)
Amortisation cost accrued during the year................................................................... (30.41) (29.60)
Translation difference................................................................................................... (1.25) (1.04)
ROU Balance at the end of the year......................................................................... 182.45 174.00
Lease Liabilities at the beginning of the year.......................................................... 115.71 95.90
Additions....................................................................................................................... 42.13 45.53
Interest cost accrued during the year........................................................................... 10.42 10.49
Payment of lease liabilities........................................................................................... (37.00) (34.11)
Deletion........................................................................................................................ (4.21) (2.10)
Lease Liabilities at the end of the year.................................................................... 127.05 115.71
Current Lease Liabilities................................................................................................ 27.08 23.60
Non-Current Lease Liabilities........................................................................................ 99.97 92.11
Total Lease Liabilities................................................................................................. 127.05 115.71
he Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
T
obligations related to lease liabilities as and when they fall due.
Rental expense recorded for short-term leases or cancelable in nature was ₹ 17.81 Crores (2021-2022 ₹ 15.34 Crores).
The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:
` in Crores
Particulars Amount as at Amount as at
Not later than one year................................................................................................. 36.43 31.96
Later than one year and not later than five years......................................................... 91.68 83.57
Later than five years..................................................................................................... 31.83 22.99
367

45. Share based payments

The Holding Company has granted share based incentives to certain eligible employees on 1 January 2023, under Kansai Nerolac
Paints Limited - Restricted Stock Unit Plan (‘RSU 2022 Plan’) approved by Nomination and Remuneration Committee (NRC). As per
the scheme, the number of shares that will vest as per vesting conditions mentioned in scheme along with performance measures
as determined by NRC. The options granted under this scheme is exercisable by employees till four years from date of its vesting.
The Company has granted options at an exercise price of Re. 1/-.
` in Crores
Year Ended Year Ended
Options outstanding at the beginning of the year......................................................... — —
Granted during the year............................................................................................... 11,92,792 —
Forfeited/Expired during the year................................................................................. 12,177 —
Exercised during the year............................................................................................. — —
Outstanding at the end of the year............................................................................... 11,80,615 —
The Holding Company has estimated fair value of options using Black Scholes model for Time based RSU's and Monte Carlo
Simulation model for Performance based RSU's. The following assumptions were used for calculation of fair value of options
granted during the year ended 31st March, 2023
Assumption factor (Black Scholes model) Estimate

Risk free rate................................................................................................................................................. 7.14%–7.23%
Expected life of option................................................................................................................................... 4-7 years
Expected volatility.......................................................................................................................................... 32%-35%
Assumption factor (Monte Carlo Simulation model) Estimate

Risk free rate................................................................................................................................................. 7.15%
Expected life of option................................................................................................................................... 4-7 years
Expected volatility.......................................................................................................................................... 34.2%
46. Other Statutory Information

(i) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for
holding any Benami property.
(ii) The Group has identified transaction with one struck off company i.e. Chemene Bombay Private Limited as Clearing and
Forwarding Agent with whom transaction during the year amounts to ₹ 0.15 Crores (2021-2022 ₹ 0.13 Crores).
(iii) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(iv) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Group has not advanced or loaned or invested funds to any other person(s) or entity, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
Group (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Group has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Group shall:
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Group has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961
368

47. he figures for the previous year have been regrouped/ reclassified wherever necessary to confirm with the current year’s
T
classification.
ACS No. 8887
369
Summarised Standalone Statement of Profit and Loss

of 15 Years
` in Crores
Year Total Cost of Employee Other Finance Depreciation Exceptional Tax Profit Dividend Dividend Earnings Earnings Net
Revenue# Materials/ Benefits Expenses Costs and Item Expense after per per per Worth
Products Expenses Amortisation Tax Share Share Share per
Expenses (`) Basic Diluted Share
(`) (`) (`)
2008-2009 1396.71 899.58 73.30 244.20 1.84 37.61 — 41.60 98.58 32.34 12.00 36.59 — 242.87
2009-2010 1726.77 1071.82 75.05 295.83 1.20 44.26 — 73.11 165.50 40.42 15.00 30.71 ^ — 286.80
2010-2011 2187.56 1400.25 91.64 356.34 0.84 49.36 — 83.15 205.98 53.89 10.00 ** 38.22 — 170.00 +
2011-2012 2624.84 1740.41 106.94 415.91 0.09 56.35 — 89.24 215.90 59.28 11.00 40.06 — 197.28
2012-2013 2872.94 1942.62 118.14 459.76 0.02 47.11 — 90.80 & 214.49 & 59.28 11.00 39.80 & — 224.21 &
2013-2014 3174.35 2133.95 135.88 532.10 0.45 64.98 — 100.42 206.57 59.28 1.10 ~ 3.83 $ — 26.41 $
2014-2015 3570.85 2364.44 143.30 596.50 0.02 67.69 — 127.23 271.67 75.45 1.40 ~ 5.04 $ — 29.63 $
2015-2016 3765.88 2348.36 170.11 640.08 — 67.72 — 176.10 363.51 & 164.37 3.05 ^^ 6.65 & — 46.44
2016-2017 4097.29 2342.95 198.12 727.31 — 69.49 — 253.48 505.94 161.67 € 3.00 € 9.39 — 52.06
2017-2018 4658.99 2774.07 226.56 796.17 — 75.79 — 270.00 516.40 140.11 € 2.60 € 9.58 — 57.99
2018-2019 5235.50 3302.53 255.38 873.71 — 90.47 — 246.06 467.35 140.11 € 2.60 € 8.67 — 63.55
2019-2020 4970.03 3057.62 269.38 834.55 5.00 119.88 — 148.20 535.40 169.76 € 3.15 € 9.94 — 70.00
2020-2021 4809.75 2957.44 268.62 686.91 8.48 149.01 10.82 183.47 530.60 282.93 *€ 5.25 *€ 9.85 — 75.65
2021-2022 5981.76 4129.26 312.37 859.93 9.87 153.82 11.39 130.79 374.33 121.25 *€ 2.25 *€ 6.95 — 77.40
2022-2023 7111.85 4955.34 333.84 997.95 9.73 164.63 — 163.93 486.43 145.50 € 2.70 € 9.03 9.02 85.50
# Net of Rebates & Excise Duty upto 2014-2015, From 2015-2016, net of Rebates and Discounts.
^ Re-calculated consequent to the Bonus Issue of 1:1 2010-2011.
** On enhanced Share capital consequent to the Bonus Issue in 2010-2011.
+ Consequent to the Bonus Issue in 2010-2011.
& Before Exceptional Items (Net of Tax).
$ Re-calculated consequent to the subdivision of Equity Share of face value of Rs. 10 each to 10 (ten) equity shares of Re. 1 each
~ Consequent to the subdivision of Equity Share
^^ Includes Special Dividend of Rs 1.25 per share.
€ The dividend proposed by the Directors is subject to approval of shareholders at the annual general meeting. The proposed dividend have not been recognised
as liabilities.
* Includes Interim Dividend ₹ 1.25 per share paid on 27th November 2020 and Special Dividend of ₹ 2.00 per share for FY 2020-2021
Includes Interim Dividend ₹ 1.25 per share paid on 22nd November 2021 for FY 2021-2022
Figures pertaining to 31 March, 2021 have been recast to give effect of merger of Marpol Private Limited and Perma Construction Aids Private Limited with
Company.
Figures from financial year 2015-2016 are Ind AS compliant
370
NOTES
371
NOTES
372
A Subsidiary of Kansai Paint Co., Ltd., Japan
Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013.
www.nerolac.com

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COLLABORATION

Kansai Nerolac Paints Limited

ABOUT THE REPORT

The non-financial information is disclosed in accordance

The Report serves as a comprehensive communication,

Assurance on selective non-financial disclosures of KNPL

Mr. N. N. Tata STANDARD CHARTERED BANK

COMPANY SECRETARY INVESTORS RELATIONS

About the Report 2

For more details, please visit:

I personally believe that culture

being and growth. Happy employees are more engaged,

to implement the identified ideas. The cross-functional

Economic & Business Scenario

To establish a deeper connection with consumers, the

Vehicle segment. Creating Digital Assets

KEY HIGHLIGHTS Brand Building:

We Strengthened our brand expression Paint + by

For the Architect & Interior Designer segment, we

Foray into new segments

Culture Building: Technology Differentiators

Investment committed to Capacity expansion at existing

FINANCIAL HIGHLIGHTS NON FINANCIAL

Net Turnover (₹ in Crores) Capacity (Million litres)

7,081.0 5,948.9 606 583

EBITDA (%) R&D Expenses (₹ in Crores)

11.2% 10.9% 40.39 33.00

PAT (₹ in Crores) CSR Spend (₹ in Crores)

486.4 374.3 12.70 14.06

Note: Performance Highlights are based on standalone performance

Electricity Consumption through Specific Water Consumption (KL/KL of FG)

31.48 30.78 1.14 1.16

Electricity Consumption through Total Emissions (Scope 1 + Scope 2)

Energy Consumption through Renewable

-303 FY 2022-23 FY 2021-22

Our Vision: Our Mission:

Our Brand Expression: Our Purpose:

Integrity Customer Focus Innovation:

OUR PRODUCT PORTFOLIO

DECORATIVE - (NEW LAUNCHES)

Impressions Excel Suraksha Perma Perma Tile TermiProtect

Beauty Gold Beauty Beauty Excel Excel Mica Excel Anti

Designer Range Primers

Ideaz Glitter Metallics Excel Alkali Exterior Nerolac Zinc

Ready Premium Popular

Wood Finish Waterproofing

Nerolac Perma Nerolac Perma Nerolac Perma

Nerofix Nerofix Soldier Premium Soldier Popular Soldier Soldier

OUR PRODUCT PORTFOLIO

4-Wheeler 2-Wheeler Commercial Vehicle

Shades of fuel tanks to be compliant

Converted low solids TSA product

General Industrial (GI) High Performance (HPC) Powder Coating (PC)

Introduced Super functionality Powder

High Abrasion & Chemical resistance

Metal Grip for the coper coils of the

Introduced a range of High Gloss Clear PU products in the Economy range

Applications in Industries (General Industrial + High Performance Coating)

OUR OPERATIONAL FOOTPRINT

Goindwal Sahib, Punjab