May 7, 2021

1. Corporate Relationship Department BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001.
1. Manager Listing National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051.
Sub.: Outcome of the Board Meeting of Kansai Nerolac Paints Limited held on May 7, 2021
Ref.: 1. Regulation 30 (read with Schedule III Part A), Regulation 33 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

2. Scrip Codes: BSE - 500165, NSE - KANSAINER

Dear Sirs,

This is to inform you that the Board of Directors of Kansai Nerolac Paints Limited ("Company") has, in its meeting held today i.e. on Friday, May 7, 2021 ("Board Meeting"), inter alia considered and approved the Audited Standalone and Consolidated Financial Results of the Company for the quarter and financial year ended March 31, 2021 ("Audited Financial Results");

The Board has recommended a final dividend of 400% (Rs. 4.00 per share) which includes special dividend of 200% (Rs. 2.00 per share) for the year, in addition the Company had declared interim dividend of 125% (Rs. 1.25 per share) paid on November 27, 2020. Accordingly, the total dividend is 525% (Rs. 5.25 per share) for the financial year ended March 31, 2021 as compared to total dividend of 315% (Rs. 3.15 per share) declared last year.

The Board Meeting commenced at 11.50 a.m. and concluded at 3.55 p.m.

Further, pursuant to the applicable provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), please find enclosed herewith:

(i) the Audited Financial Results; and
(ii) Auditors Report dated May 7, 2021, issued by the Statutory Auditors of the Company with respect to the Audited Financial Results and taken on record by the Board of Directors of the Company.

In terms of the provisions of Regulation 33(3)(d) of SEBI Listing Regulations, as amended, we declare that the Statutory Auditor of the Company, viz. S R B C & CO LLP, Chartered Accountants (ICAI Firm Registration No. 324982E/E300003) have issued the Auditors Report with unmodified opinion on the Audited Financial Results of the Company for the financial year ended March 31, 2021.

A press release issued on the Audited Financial Results is also enclosed herewith.

In reference to the Circular bearing Ref. No. SEBI/HO/CFD/CMD1/ CIR/P/2020/84 issued by the Securities and Exchange Board of India on May 20, 2020 about the impact of COVID-19, we wish to inform you that Note No. 6 of the Audited Standalone Financial Results and Note No. 5 of the Audited Consolidated Financial Results and the Press Release annexed to this letter, provides further update on impact of COVID-19 pandemic on the Company.

Necessary arrangements have been made for publishing the Unaudited Financial results in the newspapers, in the prescribed formats, in terms of Regulation 47 of SEBI Listing Regulations.

For KANSAI NEROLAC PAINTS LIMITED

G T GOVINDARAJA N Digitally signed by G T GOVINDARAJAN Date: 2021.05.07 15:57:26 +05'30'

G. T. GOVINDARAJAN COMPANY SECRETARY

Encl.: As above.

12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Mumbai - 400 028, India Tel: +91 22 6819 8000

Independent Auditor's Report on the Quarterly and Year to Date Audited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Tο The Board of Directors of Kansai Nerolac Paints Limited

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying statement of quarterly and year to date standalone financial results of Kansai Nerolac Paints Limited (the "Company") for the quarter ended March 31, 2021 and for the year ended March 31, 2021 ("Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Requiation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Requiations, 2015, as amended (the "Listing Requiations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

i. is presented in accordance with the requirements of the Listing Regulations in this regard; and
ii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter ended March 31, 2021 and for the year ended March 31, 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Standalone Financial Results" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Management's Responsibilities for the Standalone Financial Results

The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income of the Company and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting

Kansai Nerolac Paints Limited Page 2 of 3

records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a quarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Kansai Nerolac Paints Limited Page 3 of 3

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safequards.

Other Matter

The Statement includes the results for the quarter ended March 31, 2021 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2021 and the published audited year-to-date figures up to the third quarter of the current financial year, as required under the Listing Regulations.

For SRBC&COLLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003

per Anil Jobanputra Partner Membership No.: 110759

UDIN: 21110759AAAABY5830

Place: Mumbai Date: 07 May 2021

Page 6 of 20KANSAI NEROLAC PAINTS LIMITED

Registered Office: Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013Tel: +91-22-24934001; Fax: +91-22-24973704; e-mail: [email protected]

Website: www.nerolac.com CIN: L24202MH1920PLC000825

STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2021

							₹ in Crores
				For the quarter ended		For the year ended
Sr. No.		Particulars	31.03.2021	31.12.2020	31.03.2020	31.03.2021	31.03.2020
			(Audited)Refer Note 2	(Unaudited)	(Audited)Refer Note 2	(Audited)	(Audited)
$\mathbf{1}$		Income
		a. Revenue from Contracts with Customers(Net of Discounts and Rebates)	1321.09	1466.14	980.97	4655.69	4915.20
	b.	Other Operating Revenues	9.39	7.24	7.07	34.31	27.97
		Total Revenue from Operations	1330.48	1473.38	988.04	4690.00	4943.17
		Other Income	12.38	14.06	3.99	38.71	26.86
		Total Income	1342.86	1487.44	992.03	4728.71	4970.03
$\overline{2}$		Expenses
	a.	Cost of Materials Consumed	881.89	845.92	651.95	2694.59	2722.18
	b.	Purchase of Stock-in-Trade	86.04	98.33	78.60	315.33	284.23
	c.	Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(95.08)	(37.17)	(122.74)	(98.49)	51.21
	d.	Employee Benefits Expense	65.87	64.24	64.90	258.58	269.38
	e.	Finance Costs	4.02	1.04	1.29	7.49	5.00
	f.	Depreciation and Amortisation Expense	40.47	33.64	32.04	138.97	119.88
	g.	Other Expenses	188.40	212.23	187.54	686.91	834.55
		Total Expenses	1171.61	1218.23	893.58	4003.38	4286.43
3		Profit before exceptional items and tax	171.25	269.21	98.45	725.33	683.60
4		Exceptional item (Refer note 5)				(10.82)
5		Profit before tax	171.25	269.21	98.45	714.51	683.60
6		Tax Expense
	a.	Current Tax	39.19	69.97	23.54	180.18	166.33
	b.	Deferred Tax	4.26	(2.69)	3.45	3.34	(18.13)
		Total Tax Expense	43.45	67.28	26.99	183.52	148.20
$\overline{7}$		Profit for the Period	127.80	201.93	71.46	530.99	535.40
8		Other Comprehensive Income
		(i) Items that will not be reclassified to Statement of Profit and Loss	2.06	(0.60)	0.37	0.26	(1.37)
		(ii) Income tax on item that will not be reclassified to Statement of Profit and Loss	(0.52)	0.15	(0.09)	(0.07)	0.35
9		Other Comprehensive Income (net of tax)	1.54	(0.45)	0.28	0.19	(1.02)
10		Total Comprehensive Income	129.34	201.48	71.74	531.18	534.38
11		Paid up Equity Share Capital(Face value of ₹1 each)	53.89	53.89	53.89	53.89	53.89
12		Other Equity				4027.04	3732.98
13		Earnings Per Equity Share (of ₹1 each) (not annualised)
	a.b.	BasicDiluted	2.372.37	3.753.75	1.331.33	9.859.85	9.949.94

Page 7 of 20

						₹ in Crores
					As at
				31.03.2021	31.03.2020(Audited)
				(Audited)
A		ASSETS
		1. Non-current Assets
		Property, Plant and Equipment	1587.18		1594.61
		Capital Work-in-progress	205.83		164.43
		Right of Use Assets (ROU)	137.57		111.06
		Investment Property	0.18		0.18
		Other Intangible Assets	1.18		2.79
				1931.94		1873.07
		Financial Assets:
		Investments	165.54		149.92
		Loans	14.59		14.88

				180.13		164.80
		Non-Current Tax Assets (Net)		113.09		145.33
		Other Non-current Assets		90.17		145.87

		Total Non-current Assets		2315.33		2329.07
	2	Current Assets
		Inventories		1090.20		930.14
		Financial Assets:
		Investments	668.06		305.10
		Trade Receivables	836.16		674.50
		Cash and Cash Equivalents	72.28		163.61
		Bank Balances other than Cash and Cash Equivalents	3.01		2.67
		LoansOther Financial Assets	6.2355.51		4.306.09

				1641.25		1156.27
		Other Current assets		162.34		176.96

		Total Current Assets		2893.79		2263.37
		Total Assets		5209.12		4592.44

B		EQUITY AND LIABILITIES
		1. Equity
		Equity Share Capital	53.89		53.89
		Other Equity	4027.04		3732.98

		Total Equity		4080.93		3786.87

		Liabilities
	2	Non-current Liabilities
		Financial Liabilities:
		Lease Liabilities	72.69		49.04
		Deferred Tax Liabilities (Net)	88.38		84.97
		Total Non-current Liabilities		161.07		134.01

	3.	Current Liabilities
		Financial Liabilities:
		Lease Liabilities	17.41		10.97
		Trade Payables:Total Outstanding dues of Micro Enterprises and Small
		Enterprises	89.09		32.51
		Total Outstanding dues of creditors other than Micro
		Enterprises and Small Enterprises	719.94		487.00

			809.03		519.51
		Other Financial Liabilities	94.55		99.10
			920.99		629.58
		Other Current Liabilities	22.13		23.02
		Provisions	19.01		15.65
		Current Tax Liabilities (Net)	4.99		3.31
		Total Current Liabilities		967.12		671.56

		Total Liabilities		1128.19		805.57
		Total Equity and Liabilities		5209.12		4592.44

Page 8 of 20

Notes:

1. The above audited standalone financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 7 May 2021. The statutory auditors have expressed an unqualified audit opinion. The audit report has been filed with stock exchange and is available on the Company's website.
1. The figures of the last quarters are the balancing figures between audited figures in respect of the full financial year up to March 31, 2021 and March 31, 2020 and the unaudited published year-to-date figures up to December 31, 2020 and December 31, 2019, being the date of the end of the third quarter of the respective financial years which were subjected to limited review.
1. The Standalone financial results are prepared in accordance with Indian Accounting Standards ("Ind AS"), the provisions of the Companies Act, 2013 ("the Act"), as applicable and guidelines issued by the Securities and Exchange Board of India ("SEBI"). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016
1. As the Management Committee monitors the business activity of the Company as a single segment viz. 'Paints' and the sales substantially being in the domestic market, the financial results are reflective of the disclosure requirements of Ind AS 108 - Operating Segments.
1. Exceptional item represents impairment of investment in subsidiary viz. Kansai Paints Lanka (Private) Limited amounting to ₹10.82 Crores owing to revision in business plan consequent to the ongoing disruption from COVID-19 pandemic.
1. The Company has considered the impact of COVID-19 pandemic on its business operations and financial results based on its review of current indicators of future economic conditions and expects that the carrying amount of the assets will be recovered. However, the impact assessment of this pandemic is a continuing process given the uncertainties associated with its nature and duration. Accordingly, the Company will continue to monitor any material changes to future economic conditions.
1. The Board has recommended a final dividend of 400% (₹ 4.00 per share) which includes special dividend of 200% (₹ 2.00 per share) for the year, in addition the Company had declared interim dividend of 125% (₹ 1.25 per share) paid on November 27, 2020. Accordingly, the total dividend is 525% (₹ 5.25 per share) for the financial year ended March 31, 2021 as compared to total dividend of 315% (₹ 3.15 per share) declared last year.
1. Previous period figures have been regrouped / rearranged, wherever necessary, to correspond to current period's presentation.

For KANSAI NEROLAC PAINTS LIMITED

H. M. BHARUKA VICE CHAIRMAN AND MANAGING DIRECTOR

Place: Mumbai Date: 7 May 2021

Page 9 of 20

				₹ in Crores
Particulars	Year ended31.03.2021(Audited)		31.03.2020(Audited)	Year ended
Cash Flow From Operating Activities
Profit Before Tax		714.51		683.60
Adiustments for:
Depreciation and Amortisation Expenses	138.97		119.88
Fair Value Gain on Financial Instruments recognised through FVTPL	(4.24)		(10.51)
Unrealised Foreign Exchange Gain (Net)	(0.28)		1.95
Profit on Sale of Current Investments (Net)	(10.12)		(8.90)
Interest Income	(5.10)		(1.89)
Dividend Income	(2.24)		(2.21)
Profit on Sale of Property, Plant and Equipment (Net)	(2.36)		(0.14)
Finance Cost	7.49		5.00
Impairment loss allowance on trade receivables	8.75		4.57
Provisions no longer required, written back	(8.23)		(0.10)
Impairment of non-current investment	10.82

		133.46		107.65
Operating Profit Before Working Capital Changes		847.97		791.25
(Increase) in Trade and Other Receivables	(202.23)		(34.59)
(Increase)/Decrease in Inventories	(160.07)		122.63
Increase/(Decrease) in Trade Payables, Other Financial Liabilities and
Provisions	299.25		(102.70)
		(63.05)		(14.66)
Cash Generated from Operations		784.92		776.59
Direct Taxes Paid (Net of Refunds)		(146.26)		(155.98)

Net Cash Flows generated from Operating Activities		638.66		620.61
Cash Flow from Investing ActivitiesPurchase of Property, Plant and Equipment and Other Intangible Assets(including Adjustments on Account of Capital Work-in-progress, Capital
Creditors and Capital Advances)	(96.45)		(216.99)
Proceeds from Sale of Property, Plant and Equipment	2.81		0.16
Purchase of Investments in Subsidiaries	(26.34)		(41.10)
Purchase of non-current Investments	0.11		(0.13)
Purchase of Current Investments	(3277.00)		(14628.50)
Proceeds from Sale/Redemption of Current Investments	2928.30		14538.61
Interest Received	5.10		1.89
Dividend Received	2.24		2.21
Investments in fixed deposits	(0.05)		(0.06)
Net Cash Flows used in Investing Activities		(461.28)		(343.91)
Cash Flows from Financing Activities
Repayment of long-term Borrowings	(3.40)		(6.31)
Payment of Lease Liabilities	(28.19)		(16.74)
Dividend Paid	(237.12)		(140.12)
Dividend Distribution Tax Paid	٠		(28.80)
Net Cash Flows used in Financing Activities		(268.71)		(191.97)
Net (decrease)/ increase in Cash and Cash Equivalents		(91.33)		84.73
Cash and Cash Equivalents at beginning of the year, the components
being:
Cash on Hand	0.10		0.12
Cheques on handBalances with Banks	3.5533.99		25.0352.89
Deposit with Banks with less than 3 months maturity	125.13
Effect of exchange rate fluctuation	0.84		0.84
		163.61		78.88
Cash and Cash Equivalents at end of the year, the components being:
Cash on Hand	0.07		0.10
Cheques on hand	16.78		3.55
Balances with Banks	54.45		33.99
Deposit with Banks with less than 3 months maturity			125.13
Effect of exchange rate fluctuation	0.98		0.84
		72.28		163.61
Net (decrease)/ increase as disclosed above		(91.33)		84.73

12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Mumbai - 400 028, India Tel: +91 22 6819 8000

Independent Auditor's Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Requlations, 2015, as amended.

To The Board of Directors of Kansai Nerolac Paints Limited,