Kansai Nerolac Paints has completed the resignation process of Mr. Hirokazu Kotera from his position as Executive Director, effective from the close of business on March 31, 2026. The resignation follows specific instructions from Kansai Paint Co. Ltd., Japan, which serves as the promoter company and had originally nominated Mr. Kotera as a Director on the Board.

Regulatory Compliance and Documentation

The company has fulfilled all regulatory requirements under Regulation 30 read with Schedule III, Para A, Clause (7C) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was initially communicated to stock exchanges on February 3, 2026, and subsequently updated on April 1, 2026, with comprehensive documentation provided to both BSE Limited and National Stock Exchange of India Limited.

Updated Board Composition

Following Mr. Kotera's resignation, the company has provided a revised list of Board of Directors effective April 1, 2026. The current board structure includes six directors across various categories, maintaining a balanced composition of independent and non-executive directors.

Corporate Governance and Strategic Alignment

The resignation represents a strategic decision coordinated between the parent company and its subsidiary operations. The involvement of the promoter company in directing this resignation demonstrates alignment with broader organizational objectives within the Kansai Paint group structure. The advance notice provided allowed sufficient time for succession planning and ensured smooth transition of responsibilities without disrupting operational continuity.

The company secretary G. T. Govindarajan has overseen the completion of all documentation and compliance requirements, ensuring transparency in the leadership transition process. This systematic approach reflects the company's commitment to maintaining strong corporate governance standards during executive changes.

Kansai nerolac paints Limited has received GST penalty orders totaling Rs. 2.99 crore from tax authorities for two separate assessment years, the company disclosed in a regulatory filing dated 30th March, 2026. The penalties were imposed under Section 74 of the Central Goods and Services Tax Act, 2017, relating to Input Tax Credit (ITC) disallowances.

Assessment Year 2017-18 Penalty Details

The more significant penalty pertains to assessment year 2017-18, where the Commissioner Appeals II, CGST & Central Excise, Mumbai confirmed a penalty of Rs. 2,78,89,642. This penalty stems from the disallowance of transitional Input Tax Credit claimed by the company during FY 2017-18 for its Maharashtra operations.

Assessment Year 2019-20 Penalty Details

For assessment year 2019-20, the Deputy Commissioner, CGST Division-West, CGST Faridabad imposed a penalty of Rs. 20,49,698. This penalty arose from partial disallowance of Input Tax Credit claimed by the company during FY 2019-20 for its Haryana operations.

Company's Response and Legal Strategy

Kansai Nerolac Paints has indicated it possesses relevant records and legal precedence to support its claims in both cases. The company plans to file appeals against both orders:

• For the 2017-18 case: Appeal to be filed before the GST Tribunal
• For the 2019-20 case: Appeal to be filed against the Deputy Commissioner's order

Financial Impact Assessment

Despite the substantial penalty amounts, the company has stated that there is no material impact on its financials, operations, or other activities. This disclosure was made pursuant to SEBI regulations requiring listed entities to inform exchanges about significant regulatory actions.

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and relevant SEBI circulars dated November 11, 2024, and December 31, 2024.