Proxy advisory firm InGovern raises related-party issues at Asian Paints

Company says the audit committee has a majority of independent directors, and the promoter director does not participate in the meeting during discussions on related-party transactions

Dev ChatterjeeSamie Modak Mumbai
Asian Paints

The Dani family, one of the promoters of India’s largest paint firm — Asian Paints — has come under fire from proxy advisory firm InGovern after the latter pointed out several related party transactions between Asian Paints and Paladin Paints & Chemicals, a private company owned by the Danis.
“A lack of detailed disclosure and intent of procuring such a high percentage from companies, including Paladin — that are owned by promoters of Asian Paints — is strange. For example, in 2019-20, Asian Paints procured over 5.8 per cent of its raw material from companies controlled by promoters. Paladin itself formed only 7 per cent of the value of goods purchased from promoter-controlled entities,” said InGovern in a report to clients. 
Shares of Asian Paints closed at Rs 3,158 a share on the BSE, with a total market valuation of Rs 3 trillion.

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First Published: Nov 24 2021 | 4:44 PM IST

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