Castrol India : Annual Report

Castrol India Limited
Annual Report 2020
Castr l India Limited	Annual Report 2020 - Overview

MAKING

TOMORROW

BIGGER

1

Castrol India Limited	Annual Report 2020 - Overview

CORPORATE INFORMATION

Board of Directors

1. Gopalakrishnan
   Independent director and chairman

Uday Khanna

Independent director

Sangeeta Talwar

Independent director

Rakesh Makhija

Independent director

Sashi Mukundan

Nominee director

A S Ramchander

Nominee director

Udayan Sen

Nominee director

Sandeep Sangwan

Managing director

Rashmi Joshi

Chief financial officer and wholetime director (up to and including 31 December 2020)

Jayanta Chatterjee

Wholetime director - supply chain

(up to and including 31 December 2020)

Deepesh Baxi

Chief financial officer and wholetime director (w.e.f 1 January 2021)

COMPANY SECRETARY AND COMPLIANCE OFFICER

Chandana Dhar

auditors

Deloitte Haskins & Sells LLP.

Chartered accountants

Bankers

Deutsche Bank

HDFC Bank Ltd.

The Hongkong and Shanghai Banking Corporation Ltd.

State Bank of India

Citibank N.A.

DBS Bank Ltd.

J P Morgan Chase Bank N.A. Standard Chartered Bank

Registered Office

Technopolis Knowledge Park,

Mahakali Caves Road,

Andheri (East),

Mumbai 400 093, India.

CIN: L23200MH1979PLC021359

Tel: [phone]

Fax: [phone]

[e-mail]

www.castrol.co.in

Registrar and Transfer Agent

Link Intime India Private Limited

C-101, 247 Park,

LBS Marg, Vikhroli West,

Mumbai 400 011, India.

Tel: [phone]

Fax: [phone]

Toll-free number: 1800 1020 878

[e-mail]

www.linkintime.co.in

CONTENTS

OVERVIEW		REPORTS		FINANCIALS
Message from managing director	01	Management discussion and		Balance sheet	92
Board of directors	02	analysis report	13	Statement of profit and loss	93
Leadership team	03	Financial highlights	21	Cash flow statement	94
Our response to Covid-19	04	Board's report	23	Notes to financial statements	97
Accelerating digital transformation	07	Report on corporate governance	52
Powerful brands	09	Business responsibility report	72	Notice for Annual
Awards and accolades	12	Independent auditor's report	84	General Meeting	140

Castrol India Limited	Annual Report 2020 - Overview

MESSAGE FROM MANAGING DIRECTOR

Dear shareholders,

2020 will be marked as an extraordinary year! One that required everyone - communities, businesses, governments and society at large to step up to the pandemic and the ensuing challenges. Despite being in difficult and volatile circumstances on numerous occasions this year, the team too rose to the occasion and fought every battle with the passion and spirit the Castrol India team is known for. Your company showed a strong commitment to its vision of making tomorrow bigger and made solid progress growing and transforming the business, while doing it in a responsible manner, to see it through this unforgettable period.

Your company showed tremendous ownership during the unprecedented lockdown post the outbreak of the pandemic. While most employees started working seamlessly from home, plant teams resumed operations strictly adhering to government health advisories and protocols, after a brief shutdown. Supply chain colleagues ensured product delivery despite several constraints, including dealing with natural calamities, to fulfill customer demands. The team consistently displayed a growth mindset and lived the philosophy of customer-first. They engaged deeply with existing customers virtually and gained new ones too. As one Castrol, your company supported mechanics, truck drivers and other impacted communities around its plants.

New ways of working were adopted with great agility. Your company introduced digital applications and interfaces, upskilled key stakeholders through online trainings and found innovative solutions to work in the

market. It undertook strategic interventions such as digital payment solutions and continued investments in brands to transform the business. It also took actions such as inventory reduction for distributors to improve their working capital and pricing actions to set up the business for growth.

Your company saved costs, drove efficiencies and cash performance to deliver a healthy balance sheet with strong cash on hand. It reported a resilient financial performance for FY 2020 as it gained good momentum in the second half with the revival of demand where revenue improved by 54% at INR 1,818 crores while profit from operations was 122% higher at INR 501 crores versus 1H 2020.

With the pioneering and innovative spirit that Castrol is known for, your company invested in cutting edge technology and launched several new brands in this tough year. Strong advances into new channels ascertained

easy accessibility to Castrol lubricants for millions of Jio-bp customers across over 1,350 Jio-bp sites.

As your company continued to drive sustained profitable growth, it was recognized externally for safety, quality, consistent delivery and performance along with effective and relevant marketing and social interest campaigns.

Your company is certain that the actions taken in this year will be the building blocks of its growth in 2021 as the economic environment improves and moves towards normalcy. It continues to bank on your confidence and trust as it shapes and strengthens the business by exploring avenues for future growth to offer sustained value and returns to its shareholders and stakeholders.

Sandeep Sangwan

1

Castrol India Limited	Annual Report 2020 - Overview

BOARD OF DIRECTORS

1. Gopalakrishnan Independent director and chairman

Rakesh Makhija Independent director

Udayan Sen Nominee director

Uday Khanna Independent director

Sashi Mukundan Nominee director

Sandeep Sangwan Managing director

Sangeeta Talwar Independent director

A S Ramchander Nominee director

Deepesh Baxi Chief financial officer and wholetime director

2	Board of directors w.e.f 1 January 2021

Castrol India Limited	Annual Report 2020 - Overview

LEADERSHIP TEAM

Sandeep Sangwan

Bhairavi Popat

Deepesh Baxi

Maria P Valles

Managing director

Vice president - customer

Chief financial officer

Vice president - human

excellence and operations

and wholetime director

resources

Saugata Basuray		Rajeev Govil		Jaya Jamrani
Vice president - indirect sales		Vice president - B2B sales		Vice president - marketing

Rajesh Madathingal		Bindu Jayraj	Mayank Pandey
Head - technology		Head - communications	Vice president - supply chain

Siddharth Shetty		Sagar Vira
Managing counsel		Vice president - industrial sales

Leadership team w.e.f 1 January 2021	3