Kansai Nerolac Paints Limited (500165) Earnings Call Transcript & Summary

Dear, shareholders. It's 10 o'clock, and I now call the meeting to order. On behalf of myself and my colleagues and the Board, I extend to all of you a warm welcome to this 100th Annual General Meeting of our company. Our company will be completing 100 years on September 2, 2020. Let me also welcome all the directors on the Board. All the directors, including the nominees of our parent company, Kansai Paints Co. Ltd, Japan, Mr. Hitoshi Nishibayashi, Mr. Shigeki Takahara, and Mr. Takashi Tomioka for attending the meeting through video conferencing. I request the directors to introduce themselves one by one to the shareholders. First, let me begin with myself. I'm Pradip Shah, the Chairman of the company and also the Chairman of Audit Committee. I'm participating in this meeting from my home in Mumbai through video conferencing. I now request my colleagues on the Board to introduce themselves. Harish Bharuka will start.

[Foreign Language] ladies and gentlemen. My name is Harish Bharuka. I'm Vice Chairman and Managing Director. I am also the Chairman of Corporate Social Responsibility and Risk Management Committee. I'm joining this meeting through video conferencing from our headquarter. Thank you.

Good afternoon. I am Noel Tata, Independent Director. I'm also the Chairman of the Nomination and Remuneration Committee. I'm participating in this meeting from my residence in Mumbai.

Good afternoon. This is Anuj Jain, Executive Director. I'm participating in this meeting through video conferencing from our head office in Mumbai.

Mr. Nishibayashi?

Yes. Good afternoon. I'm Hitoshi Nishibayashi. I'm participating -- non-Executive Director. I'm participating in this meeting from Osaka office, Kansai, Japan.

Ms. Sonia Singh?

Good afternoon. I'm Sonia Singh, Independent Director. I'm also the Chairperson of the Stakeholders Relationship Committee. I'm participating in the meeting from my residence in Mumbai through video conferencing.

Good afternoon. I'm Shigeki Takahara, Non-Executive Director. I'm also participating in this meeting from Osaka office of Kansai Paints Co. Ltd, Japan.

Good afternoon. I am Takashi Tomioka. Non-Executive Director. I'm participating in this meeting from Osaka office of Kansai Paints Co. Ltd, Japan. Thank you.

Thank you very much. Our shareholders notes that the Chairman of the Audit Committee that is myself, the Chairman of the Nomination Remuneration Committee, Mr. Noel Tata; as the Chairperson of Stakeholders Remuneration Committee, Ms. Sonia Singh are present at the meeting. I also wish to inform our shareholders that the representatives of the share of the statutory auditor S R B C & CO LLP, Chartered Accountants; and the Secretarial Auditor, JHR & Associates, Company Secretaries are attending the meeting through video conferencing. I would also like to inform our shareholders that the quorum for the meeting is present at the meeting. In view of the continuing COVID-19 pandemic, the social distancing norms to be followed and the circular issued by the Ministry of Corporate Affairs and SEBI on holding Annual General Meeting by video conferencing without the physical presence of the shareholders at common venue. This AGM is being held accordingly. In accordance with these circulars, the Annual Report of the financial year 2019/'20, along with the Notice of the AGM has been sent on May 29, 2020, only by electronic mode to those shareholders whose e-mail addresses are registered with the company or the depository participants. The Annual Report, including the Notice of the AGM, given on Page #70 to 84 of the Annual Report is available on the website with the company and has also been forwarded to the BSE and NSE. With the permission of the shareholders, I take the Notice of the 100th AGM as well. As the auditors' report neither contains any qualifications, observations or comments on financial transactions, nor highlights any matter, which should have any adverse effect on the functioning of the company. The same need not be read at the AGM as provided in Section 145 of the Companies Act, 2013. Also, as there are no adverse comments in the report of the secretarial auditor, the same need not be read at the AGM. Shareholders are requested to note that the Board of Directors of Kansai Paints Co. Ltd, Japan, which is our parent company and holds 40,41,35,890 equity shares of company, has passed the necessary resolution under Section 113 of the Companies Act, 2013, authorizing its representative Mr. Hitoshi Nishibayashi, to act on its behalf at the AGM of the company. A copy of this resolution is available with the company and is submitted to the scrutineers for the meeting. Shareholders are also requested to note that in terms of the provision of general circular #20 of 2020, dated May 5, 2020, the inspection documents, including the documents mentioned in the annual report and books of the AGM are available with the company for inspection through electronic mode This year, the Board of Directors has recommended a dividend of INR 3.15 per equity share with the face value of INR 1 each, that's 315% for consideration of the members. This compared with a dividend of INR 2.60 per equity share of the face value of around INR 1 each, that is 260% declared in the previous year. The dividend declared will be payable on or after 27th June 2020, to those shareholders whose names are registered as such in the Register of Members of the Company as on Monday, 15th June, 2020 and through the beneficiary holders as per the beneficiary list as on Monday, 15th June, 2020, provided by the depositories, subject to deduction of tax at source as and where applicable. I'm happy to inform you that the company is in full compliance with all requirements of the Companies Act, 2013 and the rule there under it. And also with the requirements to be fulfilled and disclosures to be made in terms of the SEBI listing obligations as per the requirements, regulations, 2015. Now I will make a few comments about the company and its business. The company has grown a great deal over the decades evolving our holistic technology service and a knowledge-driven approach to develop and pioneer a variety of coating solutions for Indian consumers to touch everyday lives from homes, automobiles, white goods and infrastructure projects. In more recent times, the company has pioneered the concept of healthy home paints by bringing in heavy metal-free and low VOC, low volatile organic compound paints. At this historic juncture of our 100th year of existence, the company has defined its purpose as creating environments for a healthy and beautiful future. It has defined its brand promise as Renew Life and defined our brand expression as "Colors that Care". I'm sure all of you would have gone through the annual report of the company for the financial year ending March 2020. Starting this year, the company has transitioned towards publishing an integrated report in line with the framework developed by the International Integrated Reporting Council. The report intends to serve as a concise and an all-inclusive communication about the company's value creation process using both financial and the nonfinancial resources. It also provides insights into the company's business model, strategies, material issues emanating from the shareholder engagements and its response rate, governance, performance, financial and nonfinancial and prospects in the context of its external environment. The Annual Reports sent to you, our shareholders, outlines the performance of the company in this 100th year and that of its subsidiaries, showcases the company's journey and its efforts over the decades towards the transformation and creation of value towards a growing expanse of customers and the Indian paint industry as a whole. The report enumerates the strategic orientation of the company and its alignment with its business philosophy and policies and also the performance across our product offerings and functions, in the backdrop of the prevailing economic and business environment. Amidst the business challenges, the company was able to play true to its strength and deliver through fiscal year 2019/'20. The company continued to bring new technology to the market, thus adding value to its customers, which helped the company gain market share in automotive, performance coatings and powder coatings and end the year with a positive volume and value growth in the decorative business, though the decorative business through the year has been adversely impacted by the disturbance in Kashmir. Degrowth in the automotive business resulting from a downturn in the production of vehicle due to COVID-19 lockdown and BS VI transition had negatively impacted turnover on an overall basis. During the year, the manufacturing capability of the company was augmented with the commissioning of the new state-of-the-art digital factory in Goindwal Sahib, Punjab. In line with the strategy of the company to enter allied market verticals during the year, the company entered into a strategic joint venture with Polygel Industries Private Limited to set up a new company Nerofix for tapping the adhesives market. Further, after having acquired Perma Constructions last year to give a boost to the construction chemicals business, during the year, the company launched a new range of construction chemicals under their Nerolac Perma branding. The company continues its penetration into coil coating, pipe coating and rebar coating. During the year, the company created a dedicated manufacturing capability for coil coating at the Sayakha, Gujarat plant. As a strategic initiative to bring high-end Italian Wood finishes to our growing portfolio of premium customers, the company inked an agreement with Italy's ICRO Coatings. The company also sees its international operations as growth opportunities and is committed to invest in them. During the year, the company launched the Nerolac range of decorative paints in Bangladesh through its subsidiary RAK Paints Ltd, which has seen a great response to the market. Also, in Sri Lanka, the company changed its branding from Kansai to Kansai S-lon and revamped its distribution strategy. The company took a major step to further boost its Nepal business by starting a project to upgrade the Birgunj plant. Going forward, the management of the company expects the market conditions to remain challenging. COVID-19 and the lockdown triggered on account of which is likely to have an impact on demand on all industries for some time to come. However, under the able guidance of our Vice Chairman and Managing Director, Mr. Harish Bharuka and his team, the company remained motivated to build a sustainable future over the long-term through more or proactive steps to enhance the efficiencies and create a sustainable growth environment for one and all. In this context, we wish to inform our shareholders that our company contributed a sum of INR 4 crores to the PM CARES Fund in the wake of COVID-19. The company also undertook relief measures such as distribution of masks with traffic police staff and police station staff, for hospitals, medical and other emergency staff such police, social workers, financial assistance for buying COVID-19 related to hospital equipment, donation to the district authorities for our corona-related relief fund. The endeavor of your company has been to do its best in the services to the nation and humanity at all times and particularly in the time of this crisis. I'm sure that efforts will be made by our organization to face the challenges and put our good performance. I'm also confident that the management will continue to give a good account of itself as it has done in the past. My best wishes are to all at the helm of the affairs The company is committed to building an organization that is sensitive, vibrant and geared towards building a better tomorrow with the help of all the stakeholders. We thank you our shareholders for the continued faith that you have shown in the company. We take this opportunity to thank our parent company, Kansai Paints Co. Ltd, Japan and other technical collaborators, including Oshima Kogyo Co. Ltd., Japan, Cashew Co. Ltd., Japan, and Protech Chemicals Limited, Canada. Our special thanks to Mr. K Mori, the President of Kansai Paints, Japan for the consistency, quality and cordiality of assistance that we have received from Kansai Paint and for their valuable services to our company. Let me please express my sincere appreciation of the active interest, guidance and support that my fellow members and the Board of Directors have shown during the deliberation with the Board. I would also like to acknowledge the cooperation and support given by the employees in all our operating units and our subsidiaries within and outside India. Without their whole hearted support and participation, it would not have been possible to achieve the results that we have achieved in such a challenging environment. I would now like to inform the shareholders that as the company has provided the facility of remotely voting to its shareholders to enable them to cast their votes on all the resolutions, ordinary and special, proposed at this AGM. The e-voting facility will be extended to the shareholders who have not cast their vote by remote e-voting prior to the AGM, so they can vote through e-voting system during this AGM. The procedure for e-voting at the AGM is same as the instruction for remotely voting provided in the Notice of the AGM. The company has taken all efforts feasible under the circumstances to enable the shareholders to participate and vote on the resolutions being considered in the meeting. The company has appointed Mr. J. H. Ranade, Partners of JHR & Associates, Company Secretaries in practice, as the scrutinizer to scrutinize the remote e-voting and the e-voting at the AGM. I now request the Vice Chairman and Managing Director, Harish Bharuka to invite the speaker shareowners one by one and answer them. Other shareholders may post questions concurrently through the facility provided on the e-voting website of National Securities Depository Limited through which they are giving the live streaming of this AGM. After the shareholders have spoken and the questions raised by the shareholders will be answered by the Vice Chairman and MD, I also request him to move the resolutions proposed to be passed at the AGM and proposed e-voting facility for the shareholders, who have not yet voted on the resolutions and inform the shareholders as to when the results of the e-voting will be declared, and finally call the meeting to conclusion after the e-voting is completed. The company secretary will take necessary actions with respect to declaration of results of the e-voting process. I request all of you to take good care of yourselves and your families during this period. Thank you. I will now hand over the mic to Mr. Harish.

Thank you, Chairman. Good afternoon, ladies and gentlemen. First of all, I wish and hope that all of you are safe during this difficult time. I know you are not able to attend this meeting physically because we always love to meet all of you, but we understand the difficult situation. And given this environment, I think we should thank SEBI for making this arrangement and also NSDL for providing this opportunity so that at least we can meet remotely. So I think we must thank SEBI for so that we can continue our operations smoothly. And it also gives opportunity, fortunately, for us to see all Kansai Director. Normally, 1 director participates, now you can see all Kansai directors on the screen. It also gives opportunity to all the shareholders, not only who are located in Mumbai, but across the country and across the globe to join and participate in this AGM. So I think this is an excellent opportunity for us. So -- and I must also thank shareholders for joining through e-voting, learning this very fast, the mode, and that shows how fast we are moving towards digitalization. So thank you very much shareholders. Now coming on question and answer. There are -- as Chairman explained, there are 3 types of question and answer: one, which our shareholder who have registered as a speaker shareholder, those shareholder, I will call one by one so they can speak. And concurrently, shareholders who have not registered as a speaker shareholder, they can ask question online, and those question we will note it down and we will reply. And third, there are shareholders who have sent those questions in advance. There are 6 shareholders who have sent those questions in advance. We will respond to that once all the question and answers are -- when all the questions are completed. So with this, I invite our shareholders who have registered as a speaker shareholder. There are 12 shareholders who have registered as a speaker shareholder. So I will invite one by one. I would request Omkar as a moderator to moderate. It is very important, friends, that since we are having a remote connectivity that we follow a discipline. Each shareholder is allotted 3 minutes of time. And I think which is sufficient for you to raise those questions. So please be brief and you can ask those questions, we will note it down. While you ask the question, unmute your audio and video so that we can see you and we can listen to you. Once you finish your question, then kindly mute it again. However, you can keep your video on.

So with this, I would invite first speaker, which is [ Ashalata Maheshwari ]. She has registered as a first speaker to come and speak. I -- we have -- I understand we have received a mail from her that she is unable to join as a speaker right now. However, she has sent a message that to be read out in this AGM. And for that she has nominated [ Mahima ] to read out her message. So I would ask [ Mahima ] to come and read the speech of [ Ashalata Maheshwari ] .

[ Ms. Mahima Chopra ], you're now online. You can speak. Make the speech.

Hello? Hello?

Yes, [ Mahima ], you can go ahead.

Okay. So this is a speech of Smt. [Ashalata Maheshwari] for Kansai Nerolac AGM. First and foremost, I sincerely hope and pray that each of the members of our company and their respective families are safe and doing well. Due to the certain restrictions posed on us by our building society and the fact that we are senior citizens, not able to operate computers, we have not been able to attend this AGM through video conferencing. We are pleased to note that our company has not ignored, nor left out any stakeholder during this pandemic. And I would like to post a shayari composed by me. [Foreign Language] We are extremely happy with the performance of our company, and I would like to take this opportunity to thank the management and the Board for taking steps to protect the value and the business of the company during such difficult time. We are pleased with the overall growth, performance and the handsome dividend paid by the company, and we are particularly grateful to our Managing Director, Shri Bharuka Ji for steering this company to such height and progress. We are definitely lucky to have a visionary and great leader in our MD, Shri Bharuka Ji. We are confident that under his dynamic leadership, our company will scale greater heights and achieve much more. We have composed another thank you poem personally for him. [Foreign Language] We would like to thank the executors of the secretarial department for coordinating this so well and also making sure there is no shareholder who's left out. Lastly, as I sign off for this year, I pray that almighty keep all of you very safe in such uncertain circumstances and promise to keep you in my prayers every day. May god bless you all.

Thank you, [ Ashalata ] Ji. Thank you, [ Mahima ]. I invite now our second speaker, Mr. [ Deepak Jain ] -- [ Deepak Janak Mathuradas ]. Please, [ Deepak Janak ].

[ Deep Janak ]

[ Deep Janak ], yes. [ Deep Janak ].

Mr. [ Deep Janak ], you're online now. You can unmute yourself and unmute your video and ask the questions.

Can you hear me.

Yes, sir.

Yes. Dear Chairman, I'm [ Deep Janak ]. Thank you so much for inviting me in the first virtual -- company's first virtual AGM. At the outset, I would like to thank the secretarial department for helping all the shareholders to join this meeting. 100 years completed. I'm so proud to be a part of the 100 AGM. I congratulate the management and employees for completion of 100 years of journey. It looks like we are transforming ourselves. New logo, adding new segments, expanding our core businesses. So we are derisking and diversifying our business for future. One main question, lockdown impact. Forget Q1, April and May were as washed out. But can you throw some light on how Unlock 1, the June has trending? Has something improved as the business started a little? Oil prices have hit rock bottom and recovered a little. I hope you benefit from that. Then what is the CapEx plan for this year? And has -- will it impact the COVID -- will impact on your plans? And will we reduce or postpone any CapEx? Lastly, I went through the annual report, but could not find any segment-wise performance. Can you help me out there? Or can you send me the details? I hope this COVID phase passes as soon as possible and we meet in person in the next AGM. Thank you.

Thank you, [ Deep Janak ]. I would now invite [ Seshan Krishnamurthy ] as a third speaker to speak. I understand [ Seshan Krishnamurthy ] has sent his inability to join. So in given circumstances, I would like to invite next speaker, Mr. [ Behrouz Fordehi ] So [ Behrouz Fordehi ] please and Mrs. [ Humayu Fordehi ] both.

Okay, okay. [ Behrouz ] speaking. Can you hear me?

Yes, yes, [ Behrouz ].

I'm very glad that I'm able to attend the meeting. 100 years, we have completed, and we are the oldest paint company because there are many other paint company like Asian Paints, AkzoNobel, Berger Paints but our paint company is the best and we are 100 year back old company [indiscernible]. And now also that COVID-19, so we are celebrating both the pandemic. So we are very happy that you have given INR 3.15 dividend and we expect to receive much more interim dividend in between also. And I would like to know how much amount you have capped the -- for this pandemic -- this corona reserve, pandemic reserve? And whether we are -- because it's 2% of the amount is to be spent on CSR activities. Sir, I congratulate Mr. Harish Bharuka that he is taking keen interest in our company and he has come to the office all the way. Because yesterday, we came to know that Sundaram Fasteners President also was infected by his driver. So let our company prospers well, and we support all your resolutions, and we expect that our company comes through on a better ride. And then to be congratulating one lady, Director Sonia Singh and even our Noel Tata, such a -- Tata Gentleman, and we hope that even the Japanese director attending from Japan. And we would like to know whether we are supplying material through Maruti Suzuki, because Suzuki is also closed down and their production is also very low. So whether turnover will increase compared to last year. Sir, you -- I support all your resolution, and I wish the company all the best. Thank you very much for the patient hearing. All the very best.

Thank you, [ Behrouz ]. Thank you very much. I invite now next speaker, Mr. [ Shailesh Mahadevia ].

Hello? [ Humayu Fordehi ] Hello [ Humayu Fordehi ]. Hello?

Yes, yes, Mrs. [ Humayu ] you, please go ahead.

Question I want to ask is, are we importing any raw material from China? Are we sending our products to China - final products to China? Just we would like to know. And also has manufacturing activity started in our factories [indiscernible]. This is an essential service. And sir, during the rains, this is a very essential product waterproofing material, this material, that material [indiscernible]. Have you registered with an application, declaring it as an essential product? And how has the manufacturing activity started? Have they gone back to their villages? What problems are you facing? Let the shareholders know during our AGM. This is a very different situation, unique situation, special situation and what are your problems? Yes, we all accept that. And we wish them -- we support them. And we wish, all your resolutions we support and look forward to our company coming back with normal glory. Thank you very much.

Thank you Mrs. [ Humayu ] Now I invite [ Shailesh Mahadevia ] to come and ask the questions.

Respected Chairman, other directors and the management team members. Sir, it is for the first time that I have read your annual report soft copy, rather I have been compelled due to the present conditions prevailing in the country as well as in the world. In short, I have faced difficulties, but I also benefited considerably. I'm learning the new technology, and I'm sure I will be an expert within no time. Sir, let me first appreciate in particular point, the completion of 100 years on 2nd September. So sir, my congratulations to the company and to all the stakeholders. But the second thing I want to appreciate is that we have introduced the integrated reporting system in our AGM report, which is of considerable use and we have come at an international standard in this respect also. First thing I would like to very much appreciate is the CSR work, which our company is doing. Of course, we are doing historically also. But what is heartening to note that we have spent as much as 3.16% of our profit as against the legal requirement of only 2%. And for this, we have also received award for our contribution in this period. Sir, I'm further happy to note that we have introduced construction chemicals and adhesives as our new addition to our business. Sir, may I ask what potential do you see in the next maybe 2 years or so? Sir, my next question is we are enjoying ISO 45001 certification. Sir, may I know for what achievement this certification is being given? Sir, my next question is regarding the digital university, which you have established. Sir, I am extremely happy to note that you are taking all the stakeholders in this and each and every person in the entire team will be able to participate in digital programming. And we have also noted with pleasure that our Punjab factory is a digital factory. And it is having ultrafiltration arrangement, reverse osmosis process, multi-effect evaporation. Sir, I would like to know whether our plant will be carbon neutral and water positive? Sir, my next question is that we are making so many efforts to encourage our employees and to retain them as far as possible. Sir, may I know what is the attrition rate in our company? Sir, my next question is regarding the number of employees. We are actually 2,992 employees, but we have also employed under contractual agreement 2,905 people as contractors. Sir, I would like to know whether these contractual workers are already again engaged once again? Or we are not yet in a position to get them back for work? So therefore, I would like to know what is the capacity utilization of our various facilities. Sir, my next question is regarding the return on capital employed. Sir, 5 years ago, our return on capital was 26.9%. However, in the current year under consideration, return on capital employed is only 18.2%. That is it is consistently going down for the last 5 years. Sir, may I know, when can we expect the return on capital curve to go up? And sir, my last question is that we have filed 2 patents. Sir, I would like to know whether these are product patents or process patents? And for what purpose, these patents have been filed? Sir, with all this, I wish our organization every success and progress in the years to come. Thank you very much, sir.

Thank you, [ Shailesh ]. I wish you well. Now I invite Mrs. [ Celestine Mascarenhas ] and -- to speak. And if possible, Mr. [ Aloysius Peter Mascarenhas ] as well.

Sir, there is some technical difficulty with joining Mr. [ Mascarenhas ]. They can take it later in [indiscernible].

Okay, okay. I invite next speaker, Mr. [Pranav Bhavsar].

Yes. Mr. [ Bhavsar ], you are now online. You can speak.

Yes. I would like to have some questions like the previous shareholder on, if you can share segmental revenue contribution for this year, especially, I would be keen to -- on how much is the deco segment contributing to total revenues? How much is the automotive segment? And how much is the industrial contributing to the total revenues? Also, if you can highlight under the deco segment, how much of the demand is typically coming from consumer facing residential and real estate type of demand? Because my current concern is that because of all the social distancing norms and the COVID situation, consumers at least would be highly clear, we should not get repainting getting done, so how has management, do we plan to face that? And if you can also share like earlier shareholder asked, how is it progressing in Unlock 1? Are we seeing good demand from consumers? Are they willing to get their houses or apartment remodeled to be painted? And lastly, if you can share what kind of -- would we be able to breakeven on the volumes this year? Or we will be prepared for a little towards downside on the volume? Thank you.

Thank you, [ Pranav ]. I now move to next speaker, Mr. [ Raman Wog ].

[Audio Gap] ] and my fellow shareholders, at the outset, I would like to congratulate the company for a great journey of 100 years. I wish all the best to the company and also wish that the company achieves [indiscernible] challenges during financial year of '19 and '20, the company was able to deliver a good performance. Also despite the challenging business environment, the company is proposing a dividend of 316% against the 260% dividend delivered in the previous year. This proves that the shareholders' interest is of paramount importance to the company. And I would like to thank the Board of the company for the same. I have a few questions for the management of the company. Due to the COVID-19 pandemic, many companies have been forced to look at their strategy. As a shareholder, I would like to understand how COVID-19 has affected the future strategies of the company? My next question is, how big a role would digital and IT have to pay coming future? I would like to thank the management for giving an opportunity to speak at the meeting. Wishing everyone all the best and good healthy. Many thanks.

Thank you, Mr. [ Wog ] Now I invite [ Dipankar Purkayastha ] to come and speak.

Can you hear me?

Yes, [ Dipankar ].

Okay. First of all, I would like to thank the company for giving the opportunity to non-Mumbai-based shareholders to participate. And I would request that in future also, hopefully, COVID-19 will go away next year. This format continues so that the non-Mumbai-based shareholders can join and participate. My questions, I have already sent a couple of questions in advance. So I will not repeat those questions. I will only speak on one point, and that is the comparative performance of the company. If we look at return on capital employed and return on equity, the performance of this company is the lowest amongst the 4 major paint companies, that is Asian Paints, Berger, AkzoNobel and Kansai Nerolac, we have the lowest ROC and the lowest ROE. If I look at the compounded annualized growth in rate of sales or revenue, the figures I have got for the last 10 years, Asian Paint CAGR through sales is 13.9%, AkzoNobel is 13.1%, Berger is 14.4 -- 14.5% actually and Kansai is 11.15%, sir, again, the lowest. So not only are we the lowest in profitability and return, we are also the lowest in growth rate and sales. Now I am a layman shareholder, so I'm not an expert in analyzing the comparative performance, but as a layman, I feel that the main reason for this comparative underperformance is the performance in our decorative segment. Our company does not give the segment-wise results of revenue, assets and capital employed and profit segment-wise. So we are not able to definitely say. But I feel that it is because of the underperformance in our decorative segment, which is pulling the overall performance of the company down. So we should now have a relook at the way we are organizing our business. In the case of Asian Paints, the entire non-decorative business is handled by a separate subsidiary. In the case of Berger Paints, almost the entire business of the company is decorative. So we are not able to get results with the present setup. Can we think of having the decorative business in a separate subsidiary with a separate CEO, who can totally focus on this? I know this will result in increase in overheads, result in increase in administrative expenditure but if we are not able to keep up with the market, I think we should seriously take a relook at this. And I would like to appeal to the Board, especially the Japanese nominee directors, whether they are getting value for money in the comparative performance of this company. So my earnest request is please have a relook at the marketing of this company. Our technology is the best. Even in decorative paints with the recent introduction of metal-free paints, our technology is the best. We are definitely -- our technology is better than Asian, better than Berger. I don't know about AkzoNobel, but we are definitely technologically better than these 2. In spite of that, if we are underperforming, then we really need to -- take a relook at our marketing. Thank you. That's all that I have to say.

Thank you, Mr. [ Dipankar ]. I now move to next speaker, Mr. [ Asfi Vesania ].

Can you hear me?

Yes, we can hear you.

Yes, we can hear you.

Sir, very good. But in Q4 results, inventory had increased by INR 122 crores, whereas the annual inventory reduced by about INR 100 crores. Since there was no increase in inventory in Q4, inventory on 31st March could have reduced substantially. Am I right on that? Sir, then Q4 EPS reduced quarter-on-quarter and year-on-year. And still dividend has been increased. Does it show confidence of the management in future or there is a better use of cash by way of higher dividend, or will it be because of the 100 years. Sir, now that we have good finishes, we should display our products on the front page of annual report, rather than on Page #12. Sir, thank you and all the best.

Repeat the question.

[ Asfi ], can you repeat this question again, please?

Which one?

Dividend.

The one on dividend.

Okay, dividend, see Q4 EPS reduced quarter-on-quarter and year-on-year, and still dividend has been increased. Does it show confidence of the management in future? Or there is no better use of cash, that's why it is distributed? Or it is because of the centenary year?

Thank you, [ Asfi ]. Thank you, understand.

Thank you.

Now I move to next shareholder, Mrs. [ Mamta Chopra ].

Ms. [ Chopra ], you are now online, you can ask the question.

Hello. Good afternoon, everyone. Myself [ Mamta Chopra ], a shareholder of the company. Firstly, I would like to congratulate the company for its 100th year. This is a milestone that our company has achieved. My question to the management is how about this COVID-19 pandemic has affected the industry and the business? And what is the future outlook of the company in the view of this pandemic? I would like to express my sincere appreciation to all the efforts taken by the company to seamlessly hold this AGM through the video conferencing. I'm sure that our company will be -- will keep achieving new heights under the leadership of visionary MD. Thank you.

Thank you, [ Mamta ] Ji. Now I move to the next speaker, Mr. [ Dinesh Bhatia ].

Can you -- hearing me, sir?

Yes, yes, [ Dinesh ]. Go ahead.

Chairman Sri Harish Ji, MD, and Board of Director, I congratulate you and your team first that our properties increased in the -- for -- our company is going on 100 years, century years. I would like to tell you -- my request is that -- sir, most of the foreign companies are giving a dividend payout each year, more than 50% to 70%. But our earning per share is INR 9, INR 9.94. Last year it was INR 8.67 per share on INR 1 share. Still, we are giving you -- you are giving us only INR 3.15, no doubt, 315%. Last year, you gave a dividend 260%, increasing 60.65%, good change. Sir, but I would like to suggest that our -- we are in 100 -- on 2nd September, 2020, our company will -- going 100 years -- completing 100 years. So what is your plan to -- for this century celebration for shareholders, sir? I would like to show you, if you see our balance sheet, our capital is only INR 53.89 crore and our reserve, other capital is INR 3,732.98 crores. Last year, our reserve was INR 3,370.58 crore. So more than INR 460 crore -- INR 462 crore increase in our reserve. And I think you must decide in your Board meeting to celebrate our 100 years by way of bonus. And second thing, I am thank you to secretary also that he given me a chance for this figure. Sir, our EBITDA, it is good for your department also that our revenue is going 4.5% lower than last year, but our EBITDA is going more than last year, 14.3% increase. And our net profit is also increased 14.5%. Last year, our net profit was INR 467.4 crore. This year, our net profit is INR 535.4 crore. It's a good thing that you reducing some expenses. And therefore, our EPS going more than last year. My one suggestion is that it's also a good sign that our operating cash flow is also higher than last year. This year, our operating cash flow is INR 620.6 crore. Last year, it was INR 110.4 crore. So it's good sign that we have -- so my previous speaker is also asking you CapEx. Are you looking some CapEx there for that? And second, our free cash flow is also higher than last year. Our free cash flow is INR 403.6 crore. Last year, minus INR 413 crore, so it is good sign, and you are achieving good thing. But there are all 6 plants and 1 upcoming plants at Andhra Pradesh. Can you light on these upcoming plants that -- what activities we will be doing there? And my one also query is that our foreign incoming and outgo. Our foreign exchange earning is only INR 9.6 crore. Last year, it was INR 7.84 crore, but our outgoing is INR 769.25 crore. We saved INR 500 crores in last year. Last year it was INR 1,210 crore. So I would like to know why our outgo is such a higher figure? Can we light on that, sir? And my one suggestion. if we have the -- cash flow is good, then I -- there is my suggestion, there are many ceramic tiles companies are in Morbi and some other places they are suffering, they are not capable to handle the plant. So our -- we are also in construction, we have done some joint venture with construction company chemicals. So I think it is also the ceramic tiles business is also for building purpose. So if it is possible, you look after that then you can -- you go in ceramic business also that it will be profitable to us because our staff will be same, but our business will be increased for them. Thank you for listening my suggestion and giving me chance, sir.

Thank you, [ Mr. Bhatia ]. You're asking very intellectual questions. And we have -- we are very happy to see a lot of questions coming not only from the speaker shareholders, but also about 10 shareholders have asked concurrent questions here. And there are about 6 shareholders who have sent questions in advance. And the quality of questions are very, very good. And I'm really happy with the intellectual capacity of our shareholders. So thank you very much for this. Now let me try and respond to each one of you. First is [ Asha Latha ]. [ Asha Latha ], you've been -- for many decades, you have been attending this meeting and for -- I've seen -- noticed you. Unfortunately, this time, we couldn't see you, but I do understand. I can only -- you have only -- you raised praise for all the management and the Board. I can only say, [ Asha Latha ], that you are [ Asha ] and [ Latha ], right? Your [Foreign Language] of both [ Asha ] and [ Latha ], right? So your beautiful voice. [Foreign Language] So thank you, [ Asha Latha ji ], and we wish that next time you are able to join and we wish that with your age and with your family, you're able to keep a good health. Thank you, Asha. Coming on [ Deep ], Yes, sir. New logo, new segments. Yes, we have gone into new segments, new logo. Impact of lockdown. Yes, April was a washout. We had expected that May will also be a washout and June may not be washout, but close to washout. But fortunately, let me tell you, the sale is better than what we had expected. It does not mean that it is very good, but it is better than what we had expected. As I said, we had expected total washout, but it is better than what we had expected as far as decorative is concerned. But when it comes to industrial, specifically auto, I think that still remains a challenging industry, which you have already noticed. So I would say, so far, it is good, better than expected. Next question is benefit of oil price. Yes, oil prices have gone down, but simultaneously, the rupee is volatile. The rupee has got depreciated almost from INR 70 to INR 76, INR 77 so that's a negative for the company. And second, you must also note the oil price is very, very fluctuative. And it does not mean that a reduction in oil price will directly benefit us because the derivatives of oil price behaves totally differently. And lastly, when the oil price goes down, it is our responsibility that we pass on the benefit to our customer. So, right, while it will benefit, at the same time, it is our duty to pass on this benefit to our customers. Coming on the CapEx plan. The current year CapEx plan is about INR 175 crores, which includes INR 60 crores normal capital expenditure and INR 115 crores of expansion. Now this expansion is in our existing 2 factories, which are already we had commissioned, but we have committed certain expansion. So those expansion, we will go ahead. Whereas the Vizag plant expansion we will postponed at least by a year because of this COVID. So to that extent, you can say, yes, COVID has affected our CapEx plan. Segment-wise performance, this question, I think other 3 gentlemen have also asked. Normally, we don't give segment-wise performance because as per the accounting standard, we classify paint as the 1 segment. So segment-wise performance is not given by any company. But just to tell you the -- about 55% of our revenue comes from decorative and about 45% from industrial. I mean that's the overall revenue. Coming to [ Behrouz ], yes, corona resourced 2% of CSR, we are putting on money. Even in the current year, approximately similar amount we would spend on CSR activity because it is based on last 3 years average profit, and we have a good profit for 3 years. So we will continue to spend 2% of CSR money and which will include for corona as well as for other social activities. Are we supplying to Maruti Suzuki? Yes, of course, we are the largest supplier to Maruti Suzuki and because of that -- because auto industry is down, obviously, we were also affected. So the starting of Maruti Suzuki plant is not going to give us any further positive result. But certainly, they are our customers, so starting off auto industry would be beneficial to us. [ Uma ] you has asked, are we importing any raw material from China? And are we exporting anything to China? Of course, we don't export anything to China, but we do import a lot of raw material from China, approximately about 4% to 5% of total purchase is coming from China. How is our manufacturing activities? All our manufacturing activities have started post-corona, all plants are running smoothly. They are all normal. Yes, there are certain plants, for example, UP, where we have not got permission for 100% manpower, 70% manpower has been granted. But within that, we are managing. So no problem on that. Coming on workers who have gone back to their villages, is it affecting? Yes, workers have gone back. But so far, as I said, we have taken care. Workers are coming back also. So maybe we don't expect too much of a problem. We would be able to take care. Waterproofing material and why -- since it comes under essential product, we can use this to start the plant. Thank you for your suggestion. But as I mentioned, our plants have already started, so we don't need to use this as to start the factories. Coming to [ Shailesh Mahadevia ] what -- though we understand the problem, but what potential in next 2 years? I mean, [ Shailesh ], you know paint industry for the last 3 decades has been having a double-digit growth. And we expect this growth to continue because penetration level is low. So I don't think we need to worry. So we expect that growth will continue, so don't worry about any effect on the paint industry. And paint industries, we are the highest, better than even in the FMCG. Digital university. This digital university is basically for all our employees as a training facilities. So what we have done is, we have tied up with the best of the universities, including Harvard University for the program to our good talent. So about 200 people who would be trained on the digital university. So it is basically meant for employees to generate a future talent. Whether digital can be extended to all other stakeholders? Yes. I will touch upon this in my next question. Your company is well ahead on the digitalization and all our stakeholders are today connected through digital programs, whether it is our vendor or whether customers, right, all stakeholders, including you are today being connected through the digital programs. Whether our plants are carbon neutral and water how is our water consumption? I mean we are the company which is publishing our sustainability report, in fact, first company to publish this sustainability report when the -- there was no requirement. Even in the integrated report, which we have published, we talked in detail about our environmental program. Compared to the previous year, our carbon footprint has improved by 7%, though it is not neutral. But our power consumption, which is on nonconventional basis, is going up every year. And by next year, I think we will have more than 40% of our power requirement coming through the nonconventional method. And on the water, yes, we have a lot of water conservation policy even these river water is -- the rain water harvesting, we carry on in all the plants, and we use this. Attrition rate, you asked, which is about 16% is our attrition rate. Number of employees is 2,991 and contractual employees are engaged. So whether -- because of COVID, is it affected? I think mentioned that, yes, employees have started coming back, contractual employees have also started coming back. So it is not affecting in the immediate future. It is possible that in the next 1 or 2 months, we may still have a problem. However, right now, demand is low, so it is not affecting our productivity or the production. Capacity utilization has gone down to about 63% compared to 77% of last year. It is mainly because of the addition of the new plant. And obviously, last year, growth was lower. So utilization has gone down compared to the previous year. Two patents, which have been filed, what are these patent and what purpose these patents are? This is for our antipollution paint patent. We are coming out with some new products in the future. And it is related to antipollution paint. And it is also related to our blue CED coating, which is for industrial and auto customers. And both these patents are for product as well as process. I think many of the questions have also come on the return on capital and return on net worth. I would like to also raise the question which is raised by [ Deepankar ], but as per the message of the annual report, we have gained market share in automotive performance coating and powder coating, whereas we have not mentioned anything decorative. Does that mean we have lost market share in decorative? The answer is -- technical answer is no. Because you must know that we have a leadership in Kashmir. And in case of Kashmir, it was closed for almost 3, 4 months, which resulted into a loss of about 1.5% of our total revenue from a decorative. So if you take that in consideration, we have not lost market share even in decorative also. What is our percentage of decorative? I have already answered this question. Now coming on this ROC and ROE, even [ Deepankar ] has asked this question and others have also asked why our ROC is low compared to the industry ROC? Now let me explain this to you. Your company is mainly into the industrial customer where our market share is -- or auto is almost 55%, and we are leader into the other industrial segment. Now when it comes to auto, it is a technology-driven product, where there's a lot of investment which are required to be done, which is related to environment as well as the -- it's a capital-intensive industry. And the profitability in the industrial, of course, our plate has gone down, resulting into overall reduction of return on capital. And in last 2 years, we have spent close to INR 1,000 crores on our new plants. And we have about INR 450 crores of cash. If you remove this INR 1,000 crores of capital expenditure of last 2 years, which has built -- created the capacity and also INR 450 crores of cash, which is lying with us, which was kept basically for Vizag plant, which we have postponed. So if you remove this, then our return on net worth and return on capital is actually goes up by almost 700 basis points. And with that, perhaps we come in line with the return on network of competition. Now this is despite our lower profitability on the industrial segment. If you look at our EBITDA, our EBITDA is actually almost equal to some of the competitor other than, I would say, Leader, so which indicates that our profitability is better than competition, and we have been able to manage our cost and our profitability effectively. In fact, for the last 20 years, if you look at our overheads, overheads, every year has gone down. And that indicates our good management on the overhead. So if you take that in consideration, I think you have a good ROC and good return on net worth. So I hope I clarify all the issues which were raised by many of shareholders on return on net worth. So let me come to other questions, which have also come on WhatsApp about the bonus share. Now, friends, first of all, yes, this is our 100th year, but 100th year, we will be completing on 2nd September, 2020. So even next year is 100th year, you can say. And I would say, bonus share is just a bookkeeping entry. It is transferred from one account to your -- and other accounts from reserve to capital. So it is your money, whether we give you bonus share or not, I think it is all your money, which is lying, right? And I think this is COVID-19 situation, maybe it is a wrong time to discuss on the bonus share, I think. But you must think the management that we have increased the dividend like many of you have thanked, I think most important is giving cash in hand to you. So we have increased our dividend compared to the previous year, right? And one of the shareholders have pointed out that our payout ratio is -- why it is low compared to the payout ratio of competitor, which is around 50%. Our stated policy is about 30% to 35% is our payout ratio. So that is how we give. And if -- going forward, if there are no further plan for capital expenditure, and since we have a cash available, I think management would think whether payout ratio should be increased or not, but it is for the Board to decide, not for the management to decide, but we'll take your point in consideration. But the fact is that since we have a good cash available on our balance sheet, I think today, your company is rated very best among all the listed companies because of the cash availability. And I think you must appreciate this point. Whether any -- one more question which has come on WhatsApp, are we planning any acquisition? We have no -- as of now, there is nothing on board for acquiring any company. However, whenever any opportunity comes and which we feel are strategic important to us, company always looks for those opportunities. Okay. There's another question, which is on any [ specific ] paint, I will answer that later on. There are many questions which have also come concurrently, let me respond one by one. This is from [ Suhas ]. Congratulation to management for excellent results as the company is celebrating 100 AGM. What about bonus share? This is from [ Suhas Ingle], I already responded. From [ Amit Gupta ], whether company secretary has joined the AGM, and we could not see his face? He's sitting next to me here. So yes, he's present personally. I'm sorry, you could not see, but he is laughing here, he's sitting beside me. There's a question from [ Sagar ]. Our competitor in the industry are venturing into other business verticals, such as waterproofing and paint ancillaries. What about KNPL? You're aware, we acquired actually a company called Perma, which is actually into a construction chemical. And we -- through that company, we have launched waterproofing already. And similarly, paint ancillaries, also, we have already started last year. So we are also into these kind of businesses. Question from [ Hero Naveen ] is how many shareholders have joined this virtual AGM and how many speakers? So there are about 73 shareholders who have joined, and there are 12 shareholders who joined as a speaker shareholders. There is question from [ Mannivan ]. Would you please provide the revenue breakup based on the end consumer? I have already answered this question. There is another question from [ Mahesh Bhagwan ], how we spend in home segment vis-à-vis our peer group, percentage of market share, breakup of home versus industrial segment? I mentioned out of total revenue, 55% comes from home segment, which is decorative, 45% from industrial and our market share in decorative is about 11%. There's another question from , I think, [ Makhija ], this is on any diversification plan other than paint and giving customer more product along with decorative paints like making modecular (sic) [ modular ] kitchen, sanitarywares, plumbing, providing home solution. Friends, here, we are into the coating business, and we would continue to concentrate on coating. We have no plans to enter into kitchen or sanitaryware or plumbing business. However, as I mentioned, the company has entered into a construction chemical and adhesive businesses. So those -- certainly, we would expand. Another question from [ Mr. Kumar Iyer ] is, I congratulate the management of completion of 100 years, any bonus shares? I have already responded to this question. One question from [ Kishore Namawine ], how are we doing in rural marketing for tapping rural areas? We are actually better when it comes to rural Tier 2, Tier 3 cities. Our market share is better compared to, I would say, the cities. So we are doing quite well over there in the rural marketing. So now let me go to other questions, which have come from -- one question is on celebration of 100 years. I will respond to this question also. There's one question coming from [ Sri Krishna Dabholkar ] about our competitors have announced launch of sanitizer, what is the plan of Kansai? Friends, this is not our core area, right. So what we are doing is we are actually launching home surface product called disinfected, which will disinfect the virus. And this product, like you are sanitizing your hands, right, this product will sanitize your walls. And I think this is our actually important business. So this product, we are launching, this product can be used not only for walls, but all surfaces, that means including flooring and this is excellent product, and this is -- this can even kill the COVID virus also. So this product we are launching and this product, of course, we will sell to not only home customers, but also to our OEM customers. So next production (sic) [ question ] from against [ Sri Krishna Dabholkar ] is, any concept plan for hygiene coating? I think this question was also asked by other shareholders. Now friends, you are aware, you are the only company, about 10 years back, we -- our tagline was healthy home paints, right. So we are the first company to start actually talking about healthy home paints. And we are the first company to launch lead-free paints in the industry and low VOC and zero VOC even before other companies started talking about the health-related product. Our Eco Clean product is actually antibacterial -- it has antibacterial property. And now what we are doing is all our premium product, we are converting to antibacterial. So this year, all our premium product will have antibacterial property. And there are other innovative products in the health segment, which we are launching, which is 1 product which is like dust-resistant product, antipollution paint where we have filed the patent the Ultra Fresh, which is a formaldehyde-free product, so these products are also we are going to launch going forward. One question which has come from [ Anil Aras ] is, what are our new product plans in decorative? Friends, there are more than 10 products we are going to launch. We will be launching in the current year, some of the products I have already mentioned to you. And we will also be -- we'll be launching the more product on the functional benefit including dampness product protection, no smell, heat reduction product. And the product in the antibacterial property and antifungal property. So you can see there are lots of products, which are around home care segment, which your company would be launching. Apart from that is our construction chemical, we have launched the waterproofing and the antidamp product, and that product is already in the market. We are also launching a lot of new products on the -- in the adhesive categories, both for industrial as well as on the consumer segment. Another question, which is from [ Anil ] is, what was done by KNPL to support painter livelihood during corona? I think you must thank our marketing department, the moment this issue came, we realized that painters, the community, they would be suffering the most. So immediately, we released almost INR 5 crores of payment to the painters before 31st March itself. So money was released to all painters. We have also come out with a very unique scheme of the crowdsourcing, the relief fund and maybe even you can contribute to that. And there are a lot of public who have contributed, and we have collected so far INR 25 lakhs here. And here, our proposition is any painter if they are -- if they get COVID, then we will give them INR 25,000 relief. And there are about 4 painters who have got affected by COVID till now, and we are releasing the fund to them. So I think this is another unique step, which has been taken by your company. Apart from that, more than 1 lakh PPE kits were distributed for safety of the painters. We also carried out a training that how they should be hygiene. So about 3 lakh painters have been trained. In fact, one of the questions which was asked is whether in COVID, would people go for a painting? According to me, more people should go for a painting because paint is more hygienic product. So you would find actually don't worry, because you get maid servant daily, whereas painter will come only for 7 days in a year. So you call lots of people for repairing. So painters will definitely be there. What we are ensuring is how do we train the painters, so they are -- they give confidence to the customer that they are safe, and that is what training program we have launched and more than 3 lakhs painters have been trained. What we are also doing is their income go -- so that their income goes up, we have started sanitizer service, which will help painters to generate extra income. So there are various kinds of program which KNPL has done during this COVID time. Another question, which has come from [ Mrs. Varsha Jathar ] is, how has KNPL taken care of dealers during COVID? Again, your company was the first company, which has actually started the training program for the dealers. So we generated a video and the PowerPoint presentation, and all 25,000 dealers were connected by our marketing department and they were trained on that how to open the shop safely, how to disinfect their shop, what care they should take when the customer comes so that customer feel safe. We have also come out with the new application called Suraksha certification where we certify the dealer network that their shop is Suraksha certified. So that's the application we have come out. We have also come out with very simplified schemes so that dealers get their scheme very fast and we have also done shop insurance for the shop boys. So these are the work which we carried out for all our dealer network. And we were first to carry out, which were very appreciated by the dealer. Another which are -- which question which has come is, during this COVID, there could be a downgrading of product. So what are the KNPL's plan? Yes, it is possible there could be a good downgrading. So what we have done is we have launched 2 new economy emulsion, both in interior and exterior category that is Suraksha, acrylic and Beauty, those products are already launched in the market in the last 1 month. And you are also aware that we also have a Soldier brand and this Soldier brand actually caters to the lower segment, and we believe there are a lot of unorganized sector. And after GST, there was always possibility of this moving to organized sector. So this low economy product as well as Soldier brand would take care of that. The -- another question which has come from [ Pradeep Lokur ] is, what is our strategy on marketing going forward? And how have we reached out to consumers during lockdown? Actually, we are going to focus more on digital and innovative mediums right now rather than on the mass media. Even for painter, we have come out with a tech solution where instead of giving a physical training, we are giving out training through digital media. And this is another unique solution, which we have done it and you would have seen our new brand message, which is a new positioning for which we say colors that care and there are 3 videos, which we already launched, and you may have already seen it on the YouTube. And there, we are saying that if today you're careful, then tomorrow it will be colorful for you. [Foreign Language]. With this tagline, we have launched our new digital video. So going forward, the focus will be more on digital and even during lockdown we have respond to our consumer through digital media. Next question is, how are we ensuring safety of salesman during COVID? Number one is, of course, we have salesmen who moved to 25,000-dealer network. But during this period, we have left it to the salesmen, how they would like to travel, number one. Number two, what we have done is instead of traveling through a public transport. All salesmen have 2-wheelers given and all salesmen are traveling on 2-wheelers, right? And they have -- also, we have given a dealer mobile application, so dealer can place the order directly on the mobile even without salesmen reaching out to them. Also, you're aware, we have a call center. So each -- from call center, the call goes to the dealer network, so dealer can place directly order. So there is no need even for a salesmen to visit. Salesmen are calling dealers directly. And even if they are required to travel, they travel on the 2-wheelers. And dealer mobile application has been introduced. Apart from that, WhatsApp-based facility has been also introduced for our dealer network. So this is how we are ensuring that salesmen are safe. Apart from that, we have increased the insurance for salesmen from INR 7 lakhs to 15 lakhs. God forbid, if something happens, the insurance is also increased to them to just give comfort to them. Another question, which is from again, [ Pradeep Lokur ] is, what is KNPL's plan for construction, chemical and adhesive businesses? Yes, as you are aware that we bought this company Perma and tap with the Nerofix. And here, we have planned -- we have -- Perma has a total sale of about INR 35 crores and our plan is to almost double the turnover in the construction chemical business, and we have launched this product in last 1 month antidampness, and that is doing very well. Similarly on adhesives, this product is both for carpenter as well as on the industrial segment, which is for the rubber chemicals. So those products are also being launched. This also answers the next -- some question which was raised, how are we going into the other areas of business? Next question is on any diversification plan other than the paint. I already referred to this question. This question has come from [ Swapnali Ambulkar ]. One question from [ Sanjiv ] is, what is the potential or any plan of manufacturing or required raw material within our plant, which will decrease the dependency on the other companies? Can we have a plan for coming years to become a atmanirbhar or maximum possible? Friends, majority of the items like intermediate, your companies producing for captive consumption. So you are the only company which is all resins required for auto and industrial, majority of the resins are produced by your company. Perhaps, this is the only company, and that is why perhaps we make profit in automotive. Apart from this, in last 2 years, the polyester resin, which is required for powder coating, we had put up this facility, so that is also made internally. And third is on the emulsion for emulsion paint, whatever resin which is required, we have started manufacturing internally. Almost 70%of the product is now produced in-house instead of buying from outside. So to that extent, I think we are already doing atmanirbhar, you can say. But many of the raw materials, we can't do it, and I don't think that is our core focus area. Another question which has come is, which I think was asked by other shareholders also. This is from [ Lakshmikant Nittar ] that how is company celebrating 100 years? So friends, when, of course, dividend has been declared higher. I would not say just a celebration perspective. I think, yes, celebration is definitely required. But more than celebration, I think what is important for management is when we have completed 100 years, there are very few organizations who have survived for 100 years. So what we can do, what we, as a management and Board can do, so that your company can survive for next 100 years. For us, that is the biggest celebration. So I think what we are doing is, we are making a strategy that your company is future-ready, and that is most important for us. And you can see that new corporate identity has been launched with a new purpose, which is creating the environment for healthy and beautiful future. And look, how appropriate this line is, it's creating the environment for healthy future. And in this time, I think this is a very appropriate and beautiful future. So health cum beauty, I think this purpose for us actually brought us a new tag line, which is called colors that care, and it is, I think, very appropriate for us. Apart from this, as I mentioned, there are a lot of functional products and active products, which is what is going to be in demand rather than passive product. So which is what we would be launching in the future. What we are also doing is in this 100th year, we are carrying out a lot of engagement with our employees as well as with our customers. And I think our engagement with customers is based on this new purpose, which we have identified, new digital connect and a lot of emphasis on digital economy. This I will cover in the next question. So friends, yes, 100 years celebration for me and for the management and for Board is how to make company more stronger and future-ready. And if that you do perhaps, I think that would be a biggest celebration for you so that you can enjoy the fruits for coming 100 years, right? Things are going to evolve and change faster, but we will do best for our future. And the next question actually would take care of this as well partly, that what is KNPL plan on the digital in the new economy? Friends, I think you must know that your company was the first company, which actually moved into a digitized economy in 2000 when the ERP was launched. And from digitized, we moved very fast to a digital economy. So what is digital economy is that when you start using your digital data intellectually, right, and through a process, which is a digital, then it become a digital economy. So I think your company for last few years has been using digital economy, lots of dashboards, artificial intelligences, which used. And through that, your company was actually in the forefront of digital economy. But from a digital economy, now we are actually moving towards a digital transformation. And what is digital transformation? Everyone is talking about Industry 4.0. And here, we are talking about using Internet of Things, IoT, or using RPA or using bots analysis, right? So these are the things which I think company is now going forward using the new plant, which we have put up in Amritsar is total digital factory. And you have seen a lot of application we have launched for our dealer to connect digitally, either through mobile, all our salesmen are connected through ML application, which is, again, latest application, machine learning application. So salesmen are today guided digitally. All our manufacturing plant we are using MI, which is manufacturing intelligence and now extending machine learning there. So you can see there are host of initiatives which we are connecting all our stakeholders. Fact of the matter is, today, we are having this AGM, where many of the companies have not even come out with the results and we are here conducting the AGM. I think this indicates your company is well ahead on the digital economy. But what we are doing is, we have formed a new digital council, and we are ensuring because the things are evolving very rapidly in future. Digital is going to be our next area where a lot of investments are going to be done, so we have formed a digital council and lots of activities are going to be carried out so that we are future-ready, including e-commerce. So I think this takes care of, as I said, 100-year celebration and ensuring that your company is future-ready. So company is in safe hands and with INR 450 crores of cash available, right? One of the question was whether we will make a profit in the coming year? I have full confidence that we will make a profit. What we are trying to do is, we are lowering our breakeven point. We are reducing our cost to ensure that even if sales are lower, given this scenario, we will come out with the profit, right? And we will try and ensure that we maintain our EBITDA. And that is what is a challenge to the management, and we hope my entire team will give -- will stand to that challenge. So friends, this is where we are. And with this, I think I complete all my questions, I hope you are satisfied. So thank you very much. And with this, I would now move to resolutions. So I will now propose that all resolutions, which are placed to your AGM, there are 10 resolutions, 8 are ordinary resolutions, 2 are special resolutions. Now resolution in respect to all the matters, along with the explanatory statements, wherever applicable, they form the part of AGM. The resolution to be passed at AGM are available on NSDL's e-Voting portal. The remote e-voting portal had been kept open for voting by the shareholders from 18th June to 21st June. So I hope majority of you would have already voted. However, those shareholders who have not voted yet, they can vote through e-voting portal, which is now kept open 15 minutes -- for 15 minutes from now on. So as we conclude this meeting, the e-voting would be available for next 15 minutes. And post which, this meeting would come to an official end. So the result of this e-voting would be declared by 6:00 p.m. tomorrow, which will be available at a registered office, and it will also be published on our website. So friends, with this, I come to close of AGM, and this meeting will close 15 minutes after this time when the voting ends. So thank you very much. Thank you, all the shareholders for participating and intellectually contributing. Thank you.