During the FY 2020-21, Kansai Nerolac Paints Limited (KNPL) has spent Rs. 14.32 Crores (2.70% of PAT) (2019-20 Rs. 16.91 Crores) towards various Corporate Social Responsibility (CSR) activities.
KNPL led by H. M. Bharuka, Vice Chairman and Managing Director, is one of the leading Paint companies in India, having a Net turnover of Rs. 4690 crores (FY 2020-21). It is worth mentioning that the size of domestic paint industry is estimated at around Rs. 55000 crores as of March 2021.
The Gross amount required to be spent for CSR by the Company during the year was 14.30 Crores (2019-2020 Rs. 14.48 Crores) in FY 2020-21.
70,000 beneficiaries
More than 70,000 beneficiaries have received benefits from different activities under CSR programs such as the construction of classrooms, labs, toilets, setting up health camps, tree plantation, digging bore-wells, etc.
Rs. 4 cr to PM Cares Fund
According to an appeal dated 30th March 2020 by the Secretary of Ministry of Corporate Affairs for contribution to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), the Company had contributed a sum of Rs. 4 crores on 31st March 2020 towards the PM CARES Fund. Based on the appeal as an aforesaid and legal opinion, in respect of recent amendments by Ministry of Corporate Affairs in the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company has set off excess amount expensed towards CSR in FY 2019-2020 of Rs. 2.43 Crores against FY 2020-2021 CSR obligations.
Social development is an important agenda for KNPL, which completed 100 years of its existence last year.
Aligned with our business proposition of promoting well-being through colors, our CSR engagement with the community is designed to increase happiness through meaningful initiatives that have a lasting impact on the beneficiaries’ lives, the company said.
CSR initiatives are formulated to engage, enhance, and empower communities. Aligning with the provisions of Section 135 of the Companies Act, 2013, its CSR mission is driven by the highest governing body. It has instituted a dedicated Corporate Social Responsibility (CSR) Committee to achieve the Company’s CSR objectives with efficient resource use. The Board has also framed a CSR Policy that serves as a guiding principle for its community stewardship activities. It undertakes CSR initiatives through in-house teams or NGOs or government entities. Employees are encouraged to volunteer.
In brief
Average net profit of the company as per section 135(5): Rs 714.88 Crores
Two percent of average net profit of the company as per section 135(5): Rs. 14.30 Crores
Surplus arising out of the CSR projects or programs or activities of the previous financial years: Rs 2.43 Crores
The amount required to be set off for the financial year, if any: Rs. 2.43 Crores
Total CSR obligation for the financial year: Rs. 14.30 Crores
Total amount spent for the Financial Year: Rs. 14.32 Crores
Key Implementing Agencies for CSR Activities
Preksha Foundation, Indore
Studio Emergence, Mumbai
Rotary Club, Bharuch
Stem Foundation, Mumbai
Rotary Club, Khed
Dishantar Sanstha, Chiplun
Employee Volunteerism
KNPL takes various measures to involve employees in CSR activities and charitable work. Approximately 5% of the employees were involved in charitable work and it intends to increase it to 8%.
Impact assessment of initiatives
KNPL has constituted a CSR Committee of the Board consisting of a judicious combination of independent and non-independent directors with the majority being independent. KNPL assesses before starting an initiative and constantly monitors it at various stages. The number of beneficiaries through CSR activity is also monitored. An impact assessment of CSR projects is done annually. The CSR Committee of the Board provides strategic direction to the Company’s CSR agenda and monitors outcomes and impacts of the initiatives.
Kansai Nerolac Paints Limited (KNPL), today at the Board meeting announced its unaudited results for the first quarter of financial year 2021-22. For the quarter, the company declared Net revenue of Rs. 1301.2 Crores, a growth of 117.6 % over the corresponding quarter of the previous year.
EBIDTA was at Rs. 187.1 Crores, a growth of 132.4 % over the same quarter of the previous year. PAT was at Rs 118.7 Crores, a growth of 177.8 % over the same quarter of the previous year.
(India CSR Network)
