Berger Paints India Limited (509480) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the 96th Annual General Meeting of Berger Paints India Limited. Over to you, Company Secretary.

Thank you. Good morning, everyone. I, Arunito Ganguly, Company Secretary of Berger Paints India Limited, welcome you all to the 96th Annual General Meeting. I will take a few moments to explain a few details about this meeting. In view of the prevailing COVID-19 pandemic, the Ministry of Corporate Affairs vide its general circular numbers, 14/2020, 17/2020 and 20/2020 dated 8th April, 2020; 17th April, 2020 and 13th April, 2020; and 5th May, 2020, respectively, read with the Securities and Exchange Board of India, circular numbers, SEBI/HO/CFD/CMD1/CIR/P/2020/79, dated May 12, 2020, has allowed companies to conduct their annual general meeting through videoconferencing or other audiovisual means, thereby dispensing with the requirement of physical attendance of the members at their annual general meeting. And accordingly, this 96th Annual General Meeting of Berger Paints India Limited is being held through video conferencing or other audiovisual means in compliance with the set circulars and the relevant provisions of The Companies Act, 2013, and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Members attending this meeting through videoconferencing or other audiovisual means shall be counted for the purpose of reckoning the quorum under Section 103 of The Companies Act. Facility to join this meeting through videoconferencing or other audiovisual means is made available on first-come-first-serve basis for the shareholders. All members are kept mute by default to avoid any background noise and to ensure smooth and seamless conduct of the meeting. Once the Q&A session starts, the names of shareholders will be announced, who have registered themselves as speakers, to enable them to speak at this meeting. The speaker shareholder will thereafter be unmuted to speak. In order to give a fair chance to all speakers 5 minutes are allotted to each speaker. To start speaking, shareholders are requested to follow the instructions given to them by the operator. However, if due to any reason, they are unable to join the meeting through video, they can speak through audio mode. If there is a connectivity problem at the speaker's end, the next shareholder waiting in the queue will be asked to join in. Once the connectivity improves and if time permits, he or she will be called again to speak after the other shareholders completes his or her speech. The shareholders who have already sent their questions well in advance through e-mails will upon consideration of the relevancy of the queries also be responded during the meeting by the Managing Director and CEO. For good audio/video experience, shareholders are requested to ensure the following: ensure no other applications are running in the background, ensure WiFi is not connected to any other devices, and in case there is any issue, they may contact the phone numbers and e-mail IDs mentioned in the notice of the Annual General Meeting or click on the FAQ icon on the top of the screen. Now I would request our Chairman to proceed with the meeting. Over to you, sir.

Thank you. Good morning, ladies and gentlemen. I am delighted to welcome you all to the 96th Annual General Meeting of Berger Paints India Limited, and the first of its kind being held through audiovisual means due to the current pandemic situation. The requisite quorum being present at this meeting, I declare the meeting to order. Let me introduce my colleagues on the Board who are joining us from various locations: Mr. Gurbachan Singh Dhingra, Vice Chairman of the Board and the Chairman of the Stakeholders Relationship and Investor Grievance Committee and Business Process and Risk Management Committee, joining from Delhi. Mr. Abhijit Roy, Managing Director and CEO, and the Chairman of the Share Transfer Committee, joining from Kolkata. Ms. Rishma Kaur, Executive Director, joining from Delhi. Mr. Kanwardip Singh Dhingra, Executive Director, joining from Delhi. Mrs. Sonu Halan Bhasin, Independent Director, and a Chairperson of the Audit Committee, joining from Delhi. Mr. Pulak Chandan Prasad, Independent Director, joining from Singapore. Mr. Naresh Gujral, Independent Director, joining from Delhi. Mr. Anoop Hoon, Independent Director and Chairman of Compensation and Nomination and Remuneration Committee, joining from Kolkata. Dr. Anoop Kumar Mittal, Independent Director, joining from Bengaluru. Mr. Srijit Dasgupta, Chief Financial Officer, joining from Kolkata. I would like to mention that the representative of M/s S.R. Batliboi & Co. LLP, chartered accountants, the auditors of your company is present at this meeting. I would also like to mention that Mr. Anjan Kumar Roy, Secretarial Auditor of your company is also present. Mr. A.K. Labh, representing M/s A.K. Labh & Co., company secretaries, being the scrutinizer for this meeting is present with us. The Annual General Meeting is duly constituted in accordance with the Companies Act, 2013; other applicable laws and the Articles of Association of the Company. All endeavors have been made under the present circumstances to enable you to participate and vote on the items considered in this meeting. Since this meeting is held through videoconferencing, therefore, if at any point, due to certain unforeseen circumstances, I get disconnected, then Mr. Abhijit Roy, Managing Director and CEO, will chair the meeting till the time I'm back. The register of Directors and key managerial personnel and their shareholding maintained under Section 170 of the Act and the Register of Contracts or Arrangements in which directors are interested, maintained under Section 189 of the Act and the certificate from statutory auditors of the company, certifying that the ESOP scheme of the company has been implemented in accordance with the Securities and Exchange Board of India is also - Share Based Employee Benefits, Regulation, 2014, is made available for online inspection upon log-in at NSDL e-Voting System. I take the notice convening this meeting as read. All documents as stated in the notice and the explanatory statement thereto are available for inspection during the continuance of the meeting in the website of the company. And you may follow the process mentioned in the notice for viewing the same. Shareholders can inspect the same in electronic mode only. There is no qualification, observation, comment or other remarks made by the auditor in the report on the financial statements, both standalone and consolidated or by the secretarial auditor in the secretarial audit report for the financial year 31st March, 2020, which may have adverse effect on the functioning of the company. Hence, the auditor's report on the Financial Statements and Secretarial Audit Report are not required to be read at the meeting. Dear Shareholders, I, along with my colleagues on the Board, welcome you to the 96th Annual General Meeting of the -- of Berger Paints India Limited. I'm delighted to Chair the 96th Annual General Meeting of this marque company with remarkable legacy and lineage nearing 100 years. This meeting is being held through video conferencing due to the COVID-19 pandemic in line with the circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India, which allows our shareholders across all geographies to participate. I trust that you have received your e-copy of the annual report. During the financial year 2019-20, the businesses of the company have performed as per expectations. The consolidated revenue from operations were growing at the rate of 10% over that of the previous year till the disturbances arising out of COVID-19 pandemic started impacting business in March 2020. Despite that, at the financial year-end, the consolidated revenue from operations was INR 6,366 crores, registering an increase of 5% over that of the previous year. The EBITDA was INR 1,061 crores on a consolidated basis, which grew by 13.41%. Consolidated net profit also grew by 32.84%. You will be pleased to note that your company has paid an interim dividend of INR 1.90 that is 190% in March 2020. And the Board recommends a final dividend of INR 0.30, that is 30%, aggregating a total dividend of $2.20, that is 220% per equity share of INR 1 each in 2019-20. The market capitalization of the shares of the company stood at INR 48,363 crores as on 31st March, 2020, as against INR 31,440 crores as on 31st March, 2019, an increase of more than 50% in 1 year. The CAGR of EBITDA was 16.8% over the last 5 years. The decorative business contributed the most to this achievement, with a range of innovative and quality product offerings coupled with extensive research carried out by R&D. The popularity of the premium range of products is rising by every passing day. Your company's pioneering home painting business Berger Express Painting provides hassle-free painting, aimed at end-to-end solution at an attractive cost. This has now been further improved, considering the current situation which not only wants a faster and cleaner painting service, but also a safer one that is now reflected in this new slogan faster, cleaner and safer. The Express Painting safety kit developed for painters ensures a safer painting experience. From a platform of faster, cleaner and better, it has transcended to faster, cleaner and safer with the user -- with the use of consumer and Aarogya Setu App safety kits, protective equipments, cleaner, sanitizer and disinfectants by the painters and regulator -- regular temperature scanning and health monitoring while they undertake their work. The Silk Breathe Easy is the latest addition to the array of offerings under the ever popular Silk brands. It significantly reduces pollution and kills bacteria and viruses. It is positioned as Ghar ka Sanitizer, which is approved by the Indian Medical Association. The anti-pollution property helps to protect immunity and is certified by Singapore Green label for being environmentally -- environment-friendly paint. Introduction of WeatherCoat Champ was made during the year to cater to the requirement of a durable value for money product with enhanced tensile strength and weatherability of the paint film. To meet the needs of the people residing in high rainfall and postal markets, Luxol 7in1 was introduced for protecting metal grills, gates and shutters from corrosion. You will be proud to note that your Company retained its position as the leader in Protective Coating business in the country registering strong growth in sales. A slew of innovative offerings in the General Industrial and Automotive Business ensured that we have a sizeable presence across industries and helped countering the challenges arising out of the deceleration in automotive industry. Your Company’s Powder Coating business scaled a new height with the innovation of anti-microbial powder coating, designed perfectly for protection from microbial attack on coated surfaces meant for use in hospital beds, public transport, furniture for public use and home consumer durables. The Homeshield water proofing range saw several innovative offerings being introduced and well accepted in the markets. The introduction of the new moisture meter based scientific waterproofing solution with warranty is a revolution in the Industry. The buffet of ingenious offerings include the Wall Shield 2K, Dampstop, Waterproof Putty, Seal-O-Prime, Dampshield Elasto, Roofguard and PU Roofkoat. The acquisition of STP Ltd., with its expertise in manufacturing and supplying construction chemicals, flooring compounds, bitumen and coal tar-based products, sealants and adhesives, protective and anti-corrosive coatings is a significant move towards your Company’s unending commitment for meeting consumer aspiration and growth in this area. We are already seeing the benefits of this synergy as a result of this acquisition and are confident that the 2 entities will complement each other in various areas of manufacturing, selling, distribution, procurement, technology, thus resulting in significant benefits to the Group. The need to provide sanitizers and other protective solutions to the Company’s business ecosystem comprising painters, dealers, home owners and other partners, during the early days of lockdown, prompted the Company to foray into the hand sanitizers, multi-purpose sanitizers and home hygiene space under the umbrella brand BreatheEasy. This integrates well with the Company’s existing network, and I am happy to report that there is enthusiastic response from the market. Friends, the COVID-19 pandemic and the resultant economic crisis has truly tested the core strength and values of your Company, and I would like to mention that Berger has responded in the most suitable manner. With an eye to bring differentiated products keeping customer benefits and user friendliness in mind, the strong manufacturing, R&D and marketing teams are constantly striving in order to bring better and newer consumer experience. Under the able guidance of the Board of Directors, the Company’s quality products and motivated workforce stand as pillars of strength that infuses a lot of confidence to the management and stakeholders. The unforeseen pandemic has taught us once again that we cannot predict the ways of nature. Hence, we must continuously reinvent, engage with the stakeholders and be prepared to face any uncertainty. There must be initiatives which touch the consumers across all levels, in person and over digital media, in cities, towns and remotest of villages. The aspirations are common and therefore the reach should be uniform. We have been successful in our efforts in the short term. With innovation, quality, ethics and service as our key values we have overcome many challenges and will continue to do so in the long run -- long term, with all of your support. Thank you, Kuldip Singh Dhingra Chairman Dated - 25th September 2020 After stabling of the resolutions is over, registered speakers can express their views and ask questions. Now I will take up the formal items of business of the AGM at [ CDSM ]. The first item of business relates to adoption of audited financial statements, both stand-alone and consolidated, of the company for the financial year 31st March 2020, along with the reports of the Board of Directors and the statutory auditors thereon. The objective of this item is to comply with the requirements of the Companies Act, 2013. The second item of business relates to confirmation of interim dividend paid to the shareholders at INR 1.90, that is 190% per equity share, and the proposal to pay a final dividend at the rate of INR 0.30, that is 30% per equity share, for the financial year 31st March 2020. The objective of this resolution is to confirm the payment of interim dividend and declare our final dividend for the financial year 2019-20. The third item of business relates to my reappointment, and therefore, I request Mr. Abhijit Roy to chair this meeting and read out the items.

Good morning, ladies and gentlemen. The third item of business relates to reappointment of Mr. Kuldip Singh Dhingra as the non-Executive Director of the company, who retire by rotation at this meeting and being eligible offers himself for reappointment. The objective of this item is to comply with the requirements of Articles of Association of the Company and the Companies Act, 2013. I would now request Mr. Kuldip Singh Dhingra to take the chair.

Thank you. The fourth item of business relates to reappointment of Mr. Gurbachan Singh Dhingra as non-Executive Director of the company, who retires by rotation at this meeting and being eligible offers himself for reappointment. The objective of this item is to comply with the requirements of Articles of Association of the Company and the Companies Act, 2013. The fifth item of business relates to reappointment of M/s S.R. Batliboi & Co. LLP chartered accountants as statutory auditors of the company for a second term of 5 years from the conclusion of the 96th Annual General Meeting until the conclusion of the 101st Annual General Meeting, pursuant to the applicable provisions of the Companies Act, 2013, read with the Companies Act, Audit and Auditors Rules, 2014. The objective of this item is to reappoint the statutory auditors for a second term for the conclusion of the 96 -- from the conclusion of the 96th Annual General Meeting until the conclusion of the 101st Annual General Meeting. The sixth item of business relates to appointment of Dr. Anoop Kumar Mittal, as an Independent Director of the company for a term of 5 consecutive years from 19th March 2020, up to 18th March 2025, pursuant to the applicable provisions of the Companies Act, 2013, and the rules same thereunder. The objective of this item is to comply with the requirements prescribed under the Companies Act, 2013, and the Securities and Exchange Board of India, Listing Obligations and Disclosure Requirements, Regulations, 2015, towards appointment of Independent Director of the company. The seventh item of business relates to ratification of the remuneration payable to the cost auditors of the company pursuant to the applicable provisions of the Companies Act, 2013, read with the company's Audit and Auditors Rules, 2014. The objective of this item is to ratify the remuneration payable to the cost auditors in accordance with the applicable provisions of the Companies Act, 2013, and the rules made thereunder. I now invite the speakers to put forth their queries and suggestions. I would request the speakers to be precise. We shall be happy to answer your questions or provide clarifications after all the questions are raised.

[Operator Instructions] We have the first speaker shareholder. Mr. Kamal Kumar Majumdar, kindly unmute your audio and video to ask the question, sir. Mr. Majumdar, can you hear us? Presently, there is no response, sir. We'll go on to the next question while we check Mr. Majumdar's line separately. The next question is from the line of Mr. [ B.S. Srimal ]. Mr. [ Srimal ] kindly ask your question, sir. Sir, your audio muted at the moment? We'll just get back to Mr. [ Srimal ] as well, while we proceed to Ms. -- the next speaker shareholder, [ Anindya Kundu ]. Can we proceed with your question?

There's -- though I am a speaker, but I don't have too much of points for clarification and all, just praising because we have already seen the reports. The company is doing well. We have got -- received our dividends in 3-month finals. The appreciation of our share price -- capital has also, we can see. So congratulations to the Board for the robust performance that we have got for the last few years. And we hope that it will continue, as this is the 96th year, and the first one, I'd like to say that we will be expecting a bonus on a 1:1 or more than that in the 100th year with this performance going on. Next is that, the profit of the June quarter has decreased a little bit as per the reports as we have seen in the various websites. Is it -- it's definitely due to the pandemic and on the sales was -- and it was not operational at that time? So I think that it has improved in this quarter. I think that it will be improving, and we'll reflect -- it will reflect in the next quarter results. So I'd like to ask that all the units of our company is working or it's some is still under close? Or there are some production issues or something is still there or not? So that's all. The second is that profit for this year has also increased and the dividend of 220%. It's appraising, sir. And sir, one, the annual report that we have got this year is very informative. All the product portfolio has been said -- has been given over in the balance sheet, which gives us a greater idea of what a company manufactures and what it caters to the consumers as well as to the industrial products. It's definitely helpful because this Annual Report is the image, which goes -- that's the only thing which tells what a company does to the entire world. But one thing, sir, at page numbers 1-1-6, 116, there are 4 or 5 pending cases, disputes that are still there. So I'd like to -- that doesn't look good in this whole annual report. So I'd like to -- that doesn't goes with the image of this company actually. So I'd like to request the company to consider to look after this matter and try to resolve it because the amounts are not too high also. The amount is very less, as I have seen and I can remember. So that's all. And sir, I hope as I've already told, I will be expecting a bonus before 100th year or -- on 100th year. With that, I'd like to end my points.

We proceed to the next speaker shareholder. Mr.[ Kaushik Narendra Sowkar ], kindly unmute your audio/video to ask the question, sir. We request to kindly place your camera in the right position, Mr.[ Sowkar ]. Mr.[ Sowkar ], can you hear us? We are sorry. It seems that his line got disconnected. We'll be moving on to the next speaker shareholder. Mr. [ Ashith Kumar Pathak ].

My best wishes with good health, prosperity and happiness to our respected Chairman, MD, CFO, CEO, and other dignitaries, fellow members present at video conference. My name is Ashith Kumar Pathak, member of Berger Paints limited from Kolkata. Most welcome to our beloved Company Secretary, Mr. Arunito Ganguly, an eminent personality, excellent relations with stakeholders. I expect enhanced sincere contribution to our company with his good health. Also my sincere gratitude for sending me the notice of the AGM and especially hard copy of the balance sheet very well in advance and allowing me to speak at our virtual AGM. My best wishes to our ex, Mr. -- ex Company Secretary, Mr. Aniruddha Sen, and with his good health and enhanced contribution to our company. Excellent representation by our respected Chairman, also Managing Director, very nice and all is clear to me. So I have gotten only 5 minutes, I will quick finish my points. By falling of crude oil international prices, have our company took the advantage in respect to raw materials? Any impact in supply chains in production activities due to lockdown at present situation and capacity of utilization of our plants? Our company totally digitalized our supply chains were in rural sectors, Tier 2 and Tier 3 city, mostly in demand. All of our domestic brands set up with AI, machine learning, analytics tools and robotic operations or cost controls, production, efficiency, minimum waste, minimum transporting cost and setting up centralized warehouse for minimum cost for distributions -- logistic cost for distribution. Does our company take more initiative to enhance iTrains for returning of migrant laborers and providing their economical supports with our iTraining programs? In any future plans for developments, distributions or marketing models to enhance more marketing share, and are we joined hands with MSTC Limited for enhanced -- enhancement of e-commerce platform. They are also developing e-commerce, e-detail software very efficiency ways. Give some highlights for cost cutters and strategies at present pandemic situation and business models? To enhance international business and domestic business, what more strategies and development and initiatives are taken by our management team, if possible, throw some highlights? In any new strategy, current financial year, to take over and business partner, 8 domestic subsidiary -- other than 8 domestic subsidiary and foreign subsidiaries? And any plan to take over any greenfield and brownfield for expansions of plants and capacity utilization for future meet up demand and supply? Government Atmanirbhar initiative, how we take over the advantage most in GST and tax regimes, if possible, throw some highlights? Government has INR 1,11,00,000 crores national infrastructure projects throughout the financial year '25. How our company takes the advantage with our product portfolios? Coming to your -- our business strategic product and CapEx program from research and development, if throw some highlights, if possible throw some highlights about distribution model Homeshield constructions, chemical and waterproofing products. For mostly, we -- what type of safety measures we have taken to all our plants, wherein the most of the important the present scenario where a massive incident happens at oil/natural gas plant and tragedy happens also by that plants. Thanks to our company achieving various awards and accolades mentioned in Annual Report financial year '20. Consolidated revenue is also higher than previous year. Profit after tax INR 656 crores. EPS is going at 6.77 -- 6.76 and 5.01, and reordering the minority shareholder with 200% dividend than 119% previous year, an increase of market capitalization. So what strategy and roadmap our company management has taken to come up with the pandemic and enhance financial for performance better than financial year '20? Your foreign exchange earning is drastically down than previous year. CSR activities excellent and donation of INR 1 crore, PM CARES funds. Sir, page 116, long list for pending litigation, how it may be short listed? And Page 156, total financial liability also has done previous year. And present status of working capital and demand loan in repayment, which is mentioned with 31st April -- 30 April, 2020, (sic) [ 31st March, 2020 ] amount to INR 210.10 crore carrying interest 7.95% to 10.30% and present status of cash credit, INR 12.36 crore. And one cost control concern, your advertisement cost is very higher than previous years and present status of the Page 172 mentions an outstanding bank guarantee, which is mentioned INR 95.43 crores and financial guarantees INR 268.67 crore. And standalone basis net debt is INR 166.80 crore. And our debt reduction policy and also reserves and surplus are very higher than share capital, any future plan. One previous speaker also mentioned about bonus issue. And lastly, I expect enhanced financial performance with challenging this pandemic with the blessing of God and by the leadership, our respected Chairman and Managing Directors. God bless to everybody with sound health and mind.

We proceed to the next speaker shareholder. Back to Mr. [ Srimal ], sir are you able to see and hear us now?

We can see him. He's not audible. I think he is mute.

Mr. [ B.S. Srimal ], are you able to speak? Can you hear us? We'll get back to Mr. [ Srimal ] again. Moving on to the next question. Mr. [ Kaushik Narendra Sowkar ], sir, you are back on line.

At the onset, let me introduce myself as [ Kaushik Sowkar ] from Mumbai. Professionally, I am a chartered accountant. Medically, I suffer from dystonia. In simple terms, 55% of my body is paralyzed and infected my right hand, right leg and speech. I have not, however, treated this as a hindrances. As mentioned earlier, despite my medical condition, I have successfully completed my chartered accountant course. I am a strongly believer. I am self-reliant and self-dependent by the virtue of Berger Paints that shares the same principle of making people self-reliant through your ongoing and continuous sponsorship work. You have made and are making positive change in the society. Good associate, I had previously approached Berger Paints to work in the certification area. That has not -- unfortunately, that has not progressed. I would also like to use this forum to explore avenues that we could work together. I'm confident that you -- that you would find more professional acumen, a value-add to our organization and will empathize with my condition and support me with official work. I would like to take the opportunity to thank Board of Directors for giving me opportunity to express my view and for hearing me. A special thanks to Mr. Avinash Singh and his entire healthcare department for making this event possible. Also the company will empathize with my medical condition and will associate with me. Can I expect positive reply from company? Thank you. Thank you, so much.

We move on to our next speaker shareholder. Mr. [ Ashith Kumar Pathak ]. There is no connection. Moving on to the next one. [ Sarbananda Gattani ], kindly unmute your audio/video and ask your question.

Hello? Am I audible?

Yes. We can hear you.

Am I visible?

You are visible and audible.

[Foreign Language]. Abhijit Roy, sir, [Foreign Language] Ma'am I'm unable to see you. [Foreign Language]. Mr. Ganguly, Ganguly da, we welcome you on this Board -- on the Board as the KMP. Sir, you are the new Company Secretary? I know you for 20 years since Exide and Bata days, sir. You are a very down-to-earth person. More [Foreign Language] Ganguly da, and I hope you continue here, sir. And [Foreign Language]. I hope you continue with such wonderful advertisements. I support all the resolutions, sir. But still thing is here, I always put up questions, sir. I am constructive criticism you always like sir. [Foreign Language] Company ranked 2nd largest paint company in India, top 4 paint company in Asia in architecture coatings and ranked top 14 paint companies in the world, sir. [Foreign Language] latest addition to our luxury interior, Silk brand, Ghar Ka Sanitizer [Foreign Language] Indian Medical Association approval [Foreign Language]. Expansion plan of -- plans and [Foreign Language] consolidated revenue, INR 6,366 crore compared to INR 6,062 crore, up by 5%. [Foreign Language]. Thank you, Dhingra, sir, for you independence. [Foreign Language] dividend at INR 2.20 per share was also very good, sir. [Foreign Language] representing 95.53%. [Foreign Language] foreign exchange earning, INR 6 crore [Foreign Language]. Why so much of outgo, sir? [Foreign Language], which I don't think is good sir for a company of our stature, sir. [Foreign Language] And thank you, Ganguly da, you did an excellent job. Roy sir, I hope you continue with your hard work, and I want better results next year, sir.

We move on to the next speaker shareholder. We have the line of Kamal Kumar Majumdar back. Mr. Majumdar.

Yes. Good morning, Mr. Dhingra; Mr. Gujral; Mr. Hoon; our CEO, Mr. Roy, and other directors of the company. Nice to see all of you in good health. Myself, Kamal Kumar Majumdar, an equity shareholder from Kolkata. We all welcome Dr. Anoop Mittal as an Independent Nonexecutive Director of our company and hope that his expertise will help the company to reach greater heights. We also welcome our new Company Secretary, Mr. Arunito Ganguly. He and his team consists of Rajib De, [ Subhang De] and others must be complimented for constantly keeping in touch with shareholders. Advertising design and disclosures are concerned, it is one of the best...

Hello, I think we've lost him.

Yes. Yes. I'm on the line. As Mr. Ganguly -- Mr. Ganguly must be complimented for this also. Thank you, Mr. Chairman, for selecting such a wonderful professional to head our secretary department and also for looking at our investor relations. But sir, I have some queries getting to -- maybe on accounts, and I seek your indulgence. Firstly, despite the COVID pandemic at the end of the year, our company's results during financial year '20 in comparison to financial year '19. Whether I'm audible, sir?

Yes. Yes, we can hear you.

Despite our -- despite COVID-19 pandemic at the end of the year, our company results during financial year '20 in comparison to financial year '19 is praiseworthy. Revenue from sale of products, net of rebates and discounts during financial year '20 was INR 5,608 crores against '19 figure of INR 5,457 crores on standalone basis. In addition to better realization, dividend receipt of INR 100 crores from 2 subsidiaries, also helped the company to increase PBT of INR 905.42 crores, during financial year '20 on standalone business. And the dividend of 220% is also really good in companies when RBI and IRDA is not allowing banks and insurance companies to pay any dividend during the current year. So in this scenario, it's good. But due to COVID-19 lockdown allover India demand wiped out in the month of April. Volatile rupee has also caused trouble for the industry, which impacted our Q1 financial year '21 results with revenue from operations of only INR 838 crores with PBT of INR 67 crores on standalone basis. Sir, given [indiscernible] after lockdown is over, demand in Tier 2, Tier 3 and Tier 4 cities, also started picking up. Hold -- crude oil prices also declined. And as of yesterday, Brent crude price was -- Brent crude rate was USD 41.80. So taking into account all these positive factors, what is the expectation for the remaining part of the year taking into account all these factors? Sir, company's construction chemical business continues to grow rapidly during last 2 years. And how it fared during the Q1 of financial year '21 because we took over STP also? And how it fared during Q1 of financial year '21 and your expectation from the remaining part of the year? Sir, automation sector is showing positive results, trend. And new launches and sales also started picking up, automation sector. And in this positive scenario, how our automatic painting business is doing during the current year? How they are doing? And how our Breathe Easy sanitizer and floor cleaner are doing in the market, because we have launched both the sanitizers? And sir, what is your thinking in respect of solvent-based paints or enamels, whose overall consumption as well as the market share is decreasing for the last couple of years? What is your market share in this aspect? And what is your expectation? Sir, several capacity utilization like enhancement of epoxy CED [indiscernible] capacity by 600 metric tonnes per year. Increase in power coating manufacturing at Jejuri by 1,800 metric tonnes per year and water-based manufacturing capacity at Rishra by 12,000 per annum -- metric tonnes per annum as well as commissioning of...

Mr. Majumdar, we lost your audio again?

Sir, after the expansion of the project, what is the current capacity utilization of all those units. After the expansion what is the capacity utilization? And whether the company started getting benefits from these unit expansions during financial year '20 and financial year '21? Please share your thoughts in this respect. And sir, the company also capitalized INR 274 crores during the year, financial year. And capital work in progress at the end of the year was INR 168 crores. Whether the total INR 442.43 crores, shown as capitalized as well as WIP relates to these expansions? And what is your CapEx target for the current year? Capital target for the current year. Sir, our company took 95.53% of STP Limited at a consideration of INR 125.20 crores during financial year '20. What is its contribution to our Q1 financial year '21 results in consolidated basis? And is there any possibility of it becoming a 100% subsidiary of our company in the near term? And also, is there any possibility of its merger with our company within a short period of time? Is there any possibility of its merger? And sir, our company increased its investment in Berger Paints (Cyprus) Limited and Lusako Trading by INR 6.19 crores and INR 5.54 -- INR 5.44 crores, respectively, during financial year 2020, despite negative results and losses booked by these units. And sir, in page 175, showed that share application money pending allotment of INR 39.12 crores in respect of Lusako Trading Company. In respect of Lusako Trading Company in the Page 175, and when the shares will be issued? And is there any possibility of making further investment in our company's interest abroad with this fund, what they got were nearly -- INR 50 crores they got, whether -- is there any possibility of investing it in the -- our interest, keeping our interest? Or whether our company considering further impairments in these investments? I want to know your viewpoint in this regard. And sir, Page 176 showed that Berger Paints -- Berger Jenson & Nicholson (Nepal) Private Limited paid INR 92.69 crores as dividend to our company, again, is booking of INR 48.48 crores as profit during the year. In addition to that, another subsidiary, SBL Specialty Coatings Private Limited paid to our company INR 7.40 as dividend. How these -- both the subsidiaries are doing during the current year? And sir, we are distant second with market share of 13% to 14%, jointly with Kansai Nerolac Paints. Asian Paints is far ahead with 41%, 42% of the market share. What steps you are taking to decrease the huge gap in the coming years? And sir, our report talked about R&D expenses. Chairman, Mr. Dhingra, also talked about R&D expenses. But if anybody looks at the Page 182, then he will notice the total R&D expenditure was only less than INR 20 crores, INR 18.92 crores. And that comes to 0.33% of total sales. When you are talking about R&D, R&D, R&D and your investment is less than INR 20 crores, it gives a wrong signal. I hope you will look into it, and I want to know your position in this respect also. And sir, JSW Paints entered the market in a big way, and they set sights on South and West India -- Southern and West India, JSW Paints. And do you think any competition from them in the near future? And lastly sir, the company is becoming a darling of the investors. And on the way to reach 50-week high of -- on the way of reaching 52-week high in the short period of time. And I believe that with the massive reserve of INR 2,525 crores against an equity base of INR 97.12 crores, they are in a strong footing and will declare better results in the coming years. Thank you all for patient hearing.

We proceed to the next speaker shareholder. We are attempting to talk to Mr. [ Srimal ].

Sorry, I had to take Mr. Chairman's indulgence for this. Mr. Chairman, good morning and members of the Board. I'm CA [ B.S. Srimal ] from Kolkata. I am extremely grateful for the topic given to me for discussing the meeting and putting forward my views and thoughts. With this, I will say that the COVID-19 has given us [Technical Difficulty] virtual mode. And I would request you that this mode should be continued [Technical Difficulty]. It is an economy in [Technical Difficulty]. Could you tell me, sir, what would be the cost of your virtual meeting vis-à-vis physical meeting? Sir, what is the number or how much number of shareholder attends this virtual meeting? And your ratio of [Technical Difficulty] to scale up the e-marketing sales, as this will be the order of the things. And would also add economy, of course. I would also like to offer my grateful thanks to the Chairman, MD and -- MD, Sri. Abhijit Roy, and his management team for producing most wonderful results. [Technical Difficulty] downward trend to the economy. I am very happy to shareholders are also rewarded by way of increase in the [Technical Difficulty] dividend, you see, very important thing for the investor [Technical Difficulty] with this for some time. You said you have declared a dividend of INR 2.20 per share, totaling to INR 251.20 crores out of the -- out of INR 699 crores, which works out to only 35.92%, sir, when the investors are facing a huge cash crunch. I would also like to point out that companies like HUL has distributed 91% [Technical Difficulty] 65.59% and Exxon Mobil 55.58%. So is the case of many more companies, especially FMCG companies. Here, I would like to draw the kind attention of our Chairman whether we could expect some [ dividend ] due to this pandemic situation where small investors are dependent [ on ] the dividend earning as well. So sir, would you sir -- hope to [Technical Difficulty] in dividend payout soon. We have a huge reserve INR 2,527 crores against a meager share capital of INR 97.12 crores only. Is the right and bonus are overdue. Sir, [ I request ] the board to reconsider the same with due perspective. It will also help the [Technical Difficulty] INR 223 crores and finance cost is INR 32.08 crores. Could you tell us sir that [Technical Difficulty] this year should also likely to be forfeited? So what proactive steps the company has taken in this direction to avoid this [Technical Difficulty]. And I would request that the unclaimed dividends [Technical Difficulty] so that the shareholder can reach and claim the dividend. Sir, could you tell me what is the total CapEx in the financial year [Technical Difficulty] addition to the company's portfolio. Sir, what would be the retiring age of the Directors? I find that the age of Director [Technical Difficulty], which is a very young Board. And I must appreciate the countermeasures [Technical Difficulty] in view of the COVID situation, if you can kindly specify how and how much is achieved in '21? Sir, R&D expense [Technical Difficulty] speaker has also spoke. So I will not try to elaborate. Sir, quarterly results for the first quarter [Technical Difficulty] distributed to the shareholders, I would request the Secretary to calculate quarterly results as well. Sir, what is the ratio of your remarketing and sales and retail sales? Sales division between the urban and rural department and export and the inland consumption. Sir, what is your plan for being carbon positive, water positive and solid waste [ recycle ]. Ratio of your renewable energy against normal energy consumption? Sir, I would be [ failing ] if I do not recognize and appreciate the work of our company secretary who has taken all the pain to give this meeting a very colorful view and he has contacted all the shareholders for joining the meeting. [indiscernible] in the annual report if we make the index [indiscernible] instead of going through all the pages [ that is great ] and I must thank you for that. I would also like to tell that if possible from next year, if you can also give the page number against each schedule of the balance sheet and profit and loss account, it would be helpful to the shareholders. I had some few peer comparison of your company with the peer company. Your total asset turnover with Asian Paints [indiscernible]. So what steps are we taking in this respect. Sir, in terms of revenue, the Asian Paints is [indiscernible] when should we think that we will achieve a turnover of at least [indiscernible] then balance sheet should be [indiscernible] especially the Independent Director and Audit Committee Chairman to give -- to impart a greater confidence to the minority shareholders. Sir, what will be the impact of MOU in the current profit revenue of the company through the acquisition by company if any. I would like to conclude and thank you very much Mr. Chairman and the MD for giving me this opportunity. Thank you so very much.

Thank you.

We proceed to the next speaker shareholder, Mr. [ Amit Kumar Banerjee ]. Kindly, unmute your audio and video and ask the question, sir.

Good afternoon, sir. My name is Amit [indiscernible]

Mr. [ Banerjee ], can you just check your audio again? Yes, you're back, I think.

I think, am I audible?

Yes, you are.

Yes, you are. I think it will be good, if you can switch off your video because the bandwidth can be a problem at times. So if you can switch it off and speak, it will be better, your video.

Mr. [ Banerjee ], are you able to speak right now? Hello?