Safer. Smarter. Sustainable
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Safer. Smarter. Sustainable. CEAT LIMITED Integrated Annual Report 2019-20 ‘Making Mobility Safer & Smarter. About RPG Group Every Day.’ is the ethos the Company Index lives by to create a sustainable future. Established in 1979, the RPG Group is a Corporate diversified conglomerate with interests in Overview From its products to its processes, CEAT has constantly evolved Safer. Smarter. Sustainable. 02 to adapt to a dynamic environment, while remaining committed the areas of tyres, infrastructure, information CEAT at a Glance 04 to its endeavour of making mobility safer and smarter. CEAT has Prudent Performance technology, pharmaceuticals, energy and continued to focus on leveraging technology to invent for the future, 08 plantations. Founded by Dr. R. P. Goenka, build a vibrant workplace for its people and uplift the communities in Chairman’s Message 10 which it operates. This has helped the Company deliver value to its MD’s Message 12 the Group’s lineage dates back to the early investors and thrive in a competitive business landscape. Board of Directors 14 th Corporate Information 15 19 century. Today, the group has several The safety of its customers and employees is of paramount importance companies in diverse sectors and the most to CEAT and is reflected in its product offerings and safe workplace. Memorable Milestones 16 Embracing digitisation has been the driving force behind the Company’s Value prominent among them being CEAT, KEC efforts to optimise its operations. The Company believes in sustainable Creation conduct of operations. The increased focus in areas of Environment, International, Zensar Technologies, and RPG Value Creation Model 18 Social and Governance (ESG) norms and all efforts in this direction are Stakeholder Engagement and helping the brand minimise its environmental impact and propel positive Life Sciences. Built on a solid foundation Materiality Analysis 24 change with the community interventions towards making communities Financial Capital of trust and tradition, the RPG name is self-sufficient, healthy and prosperous. 28 synonymous with steady growth and high Manufactured Capital 32 CEAT is happy to commence its journey of Integrated Reporting Intellectual Capital 36 highlighting the Company’s ESG performance, which is the first step standards of transparency, ethics and Human Capital 42 towards enhancing the value it generates for all its stakeholders. The Natural Capital 50 governance. Company believes that this will offer deeper insight that will help create greater shared value, getting one step closer towards a world that is Safer, Social and Relationship Capital 56 Smarter and Sustainable. COVID-19 Response 64 Statutory Reports Management Discussion and Analysis 68 Discussion on Financial Performance and Key Financial hello happiness Ratios 80 Board’s Report 89 Happiness is intrinsic to life at RPG. Be it in our product innovations, people policies, Corporate Governance Report 116 business practices or in our community outreach programmes. Our Vision tenets clearly Business Responsibility Report 139 outline the path we traverse – to be an organisation where imagination creates a new Safer Smarter Sustainable future and happiness drives us to achieve more. Financial Statements Standalone Financial CEAT on Social Media: “hello happiness”, is a bold statement that helps us open our doors to a world of Statements 145 opportunities and possibilities; a statement that signifies our intent to touch and enrich @ceattyresindia AOC-1 222 the lives of others, and work collectively towards a common goal that makes each of us @CEATtyres Consolidated Financial rise beyond our limitations. Statements 224 @ceat_tyresindia Scan this code with a QR reader app on Ceattyres2010 your smartphones or tablets to access this Notice Integrated Annual Report. ceat-tyres-limited of AGM 308 For more details, please visit www.ceat.com Appendix 318 CORPORATE OVERVIEW VALUE CREATION STATUTORY REPORTS FINANCIAL STATEMENTS CEAT LIMITED | ANNUAL REPORT 2019-20 Safer. Smarter. Sustainable. From its products to its processes, an unwavering commitment ABOUT THE REPORT CEAT is a leading tyre manufacturer in This report has been prepared in ‘projects’, ‘intends’, ‘plans’, ‘believes’, to safer and smarter mobility defines the strength of CEAT. It India, having market presence across accordance with the GRI Standards: and words of similar substance in the world. It has been publishing Core option. In addition to the <IR> connection with any discussion of propels the company to define new ways of working, create annual reports since its inception Framework, it is also aligned with: future performance. CEAT cannot innovative products and ensure sustained value creation for its and this is its 61st report. For the guarantee that these forward-looking Financial Year 2019-20 (FY 20), the National Voluntary Guidelines statements will be realised, although diverse stakeholders. Company has developed its first on Social, Environmental and it believes that it has been prudent in Integrated Annual Report, based on Economic Responsibilities of its assumptions. The achievements the International Integrated Reporting Business of results are subject to risks, CEAT has constantly evolved to adapt emphasis on the health and safety of focus on the natural environment as Council’s (IIRC) <IR> Framework. uncertainties and even inaccurate UN Sustainable Development to a dynamic environment, which has its employees. well the surrounding communities, The IIRC is an international coalition assumptions. Should known or Goals (SDGs) not only translated into enhanced encouraging it to nurture a safer and of various industry stakeholders unknown risks or uncertainties product offerings, but also digital As the world continues to recover sustainable world. amidst chaos, CEAT is adopting that encourages organisations to UN Global Compact (UNGC) materialise, or should underlying adoption, which has been the driving communicate their value creation assumptions prove inaccurate, disruptive solutions recognising the Integrated Reporting offers a chance Principles force behind the Company’s efforts to over time. CEAT has embarked on this actual results could vary materially optimise its operations, To create a formidable future, with the need to highlight CEAT’s ESG performance, journey to communicate its integrated Report Scope and Boundary from those anticipated, estimated or distinctive identity, CEAT understands to be productive, proactive and and is yet another step by the Company proficient. CEAT’s persistent efforts to enhance the value it generates for thinking and how its business creates projected. Readers should keep this in the need to resort to smarter solutions. This report covers information on to seek innovative outcomes is all its stakeholders. Never one to rest sustained value for stakeholders. mind. CEAT undertakes no obligation the financial and non-financial The safety of its end users remains a reflected in its endeavour to embrace on its laurels, CEAT believes that this to publicly update any forward-looking Approach to Reporting performance of CEAT’s business prime concern for CEAT which has been technological interventions and journey will offer deeper insight that statement, whether as a result of new operations in India for the period a driving force behind the Company’s advanced manufacturing capacities, will help it create greater shared value, This maiden integrated report covers information, future events or otherwise. April 1, 2019 to March 31, 2020. efforts to optimise operations. It is also coupled with a growing acceptance taking us one step closer towards qualitative and quantitative disclosures Statutory Audit of CEAT’s performance across the six motivating the company to tirelessly of digital tools. It allows the Company a world that is Safer, Smarter and Responsibility Statement capitals that form the <IR> Framework. lay the foundations for a secure to successfully thrive in a competitive Sustainable. Financial information of statutory working environment, with a greater environment while increasing its It summarises the Company’s The Management of CEAT has nature contained in this report has business strategy, risk management reviewed and approved the contents been externally audited as per the framework, corporate governance of this report, based on robust data regulatory requirements of India by and information as per relevant management systems and interactions S R B C & CO LLP. The audit statement statutory requirements. The report with key internal business functions. can be found in the sections also showcases how the organisation Therefore, the Management believes Standalone Financial Statements with efficiently manages its resource that this report reasonably represents Auditor’s Report and Consolidated allocation across all six capitals, which the Company’s ESG performance for Financial Statements with Auditor’s has also been captured in its business the reporting period. Report of this report. model. It reflects the importance given to long-term value creation by In this Annual Report, CEAT has Feedback the Company through its stakeholder disclosed forward-looking information relationships, organisational culture to enable investors to comprehend Feedback from the stakeholders and risk management in the face its prospects and make investment is sought to help address their of a dynamic external environment. decisions. This Report and other challenges and report on material The contents of this report are based