To operators take up supervisory roles and grow

reduce the dependence on fossil fuels, Asian Paints substantially augmented
investments in renewable energy projects. As part of Renewable Energy strategy
‘RE36’, they are working towards sourcing 36% of the total electricity
requirement at decorative paint plants through renewable sources by 2020. New
solar and wind installations during the reporting period boosted total
installed capacity to 15.58 MW and helped them end the year at RE 22% as
against the target of 18.6%. The company has taken initiatives to arrest air
leakage; it was observed that 50% of compressed air was being lost to leakages
leading to non-productive energy consumption and higher costs. A team was
formed to conduct fortnightly air audits, convert multiple FRL to common FRL,
and replace faulty diaphragms in actuator valves. As a result, air leakages
reduced from 52% to 32%. More than 50% of the net revenue of the company is
spent on raw material and packing material. The Company also incurs cost in
treatment and disposal of waste which increases with higher material wastage.
It is therefore imperative for the organization to emphasize on material
efficiency to reduce the resource consumption, avoid waste generation and
reduce expenditure.

Asian Paints, union settlements have always been linked with productivity
improvements. The robust grievance redressal system across the organization
means that ‘justice is not only done, but also seen to be done’. There has been
a focus on growth and inclusive participation for all cadres in the plant,
which has seen operators take up supervisory roles and grow in their careers.
This has translated into a new outcome based approach to labor settlements
replacing the traditional activity based model. The Company’s policy prohibits
engaging of any child labour or involuntary labour. Thus, there are no
complaints relating to child labour, forced labour and involuntary labour.
During the financial year 2016-17, the Company received 4 (four) complaints on
sexual harassment and took necessary steps to resolve and close 3 (three) of
them in accordance with applicable laws and guidelines. As on 31st March, 2017
1 (one) complaint is under investigation. A limited number of women are present
in its contract workforce and there is no discrimination between men and women
with regard to working conditions and payment of wages. The Company’s terms of
contract clearly stipulate statutory requirements for contractors and they
undergo stringent selection criteria and screening. There are no cases filed by
any stakeholder against the Company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive behavior during the last (5)
five years.

The Committees constituted by the Board of Directors of the
Company function in accordance with the framework and terms of reference
assigned to them by the Board, in accordance with the provisions of the
Companies Act, 2013 read with the Rules issued there under and Listing
Regulations. The Company has an optimum composition of Executive and
Non-Executive Directors. Out of 14 fourteen members on its Board, seven are
Independent Directors, six are Non- Executive/ Promoter Directors and one
Managing Director & CEO. The Independent Directors of the Company have been
appointed for tenure of five years up to 31st March, 2019. Mr. R. Seshasayee
has been appointed by the Board of Directors with effect from 23rd January,
2017 for a period of five years, subject to approval of the shareholders of the
Company at this ensuing Annual General Meeting (AGM). The meetings of the Board
of Directors are generally held in Mumbai and also, if necessary, in locations,
where the Company operates. During the financial year, seven meetings of the
Board of Directors of the Company were held.