3m india ltd Directors report


To the Members of

3M India Limited,

Your Directors are pleased to present the Thirty Sixth (36th) Annual Report of the Company. The Standalone and Consolidated Financial Statements of the Company for the financial year ended March 31, 2023 are prepared in compliance with the applicable provisions of the Companies Act, 2013 including Indian Accounting Standards. The audited Standalone and Consolidated financial statements together with the Auditors Report thereon form a part of the Annual Report.

FINANCIAL HIGHLIGHTS - STANDALONE AND CONSOLIDATED

( in lakhs)

Standalone Consolidated
Particulars Year ended March 31, 2023 Year ended March 31, 2022 % increase / decrease (-) Year ended March 31, 2023 Year ended March 31, 2022 % increase / decrease (-)
Revenue from Operations 373,344.21 307,830 .08 21.28 395,936.77 333,584.17 18.69
Of which -Export Sales 2,188.81 2,385.65 (8.25) 2,207.81 2,494.72 (11.50)
Other Income, net 6,422.12 3,471.84 84.98 6,809.59 3,711.51 83.47
Total Income 379,766.33 311,301.92 21.99 402,746.36 337,295.68 19.40
Less: Expenditure 317,365.04 269,641.14 17.70 335,507.61 294,660.11 13.86
Profit before Interest and Depreciation 62,401.29 41,660.78 49.78 67,238.75 42,635.57 57.71
Less: Finance costs 709.96 363.56 95.28 727.03 372.04 95.42
Less: Depreciation and amortisation expense 5,611.72 5,327.62 5.33 5,767.91 5,511.72 4.65
Profit before Taxation 56,079.61 35,969.60 55.91 60,743.81 36,751.81 65.28
Less: Tax expense 14,465.22 9,352.09 54.67 15,641.89 9,554.70 63.71
Profit for the year 41,614.39 26,617.51 56.34 45,101.92 27,197.11 65.83
Items that will not be reclassified subsequently to profit or loss 44.41 109.87 (59.58) 40.95 127.26 (67.82)
Total Comprehensive income for the year 41,658.80 26,727.38 55.87 45,142.87 27,324.37 65.21

DIVIDEND

During the year, the Board of Directors declared an interim dividend of 850/- per equity share which was paid out during the year. The Board is pleased to recommend a final dividend of 100/- per equity share of face value 10/- each, which if approved at the Annual General Meeting, will be paid to all those equity shareholders of the Company whose names appear in the Register of Members and whose names appear as beneficial owners as per the beneficiary list furnished for the purpose by National Securities Depository Limited and Central Depository Services (India) Limited as on record date fixed for this purpose. The total dividend for the financial year would be 950/- per equity share of face value 10/- each.

Your Board of Directors approved the Dividend Distribution Policy on February 9, 2017 in terms of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015. The Policy was amended on November 9, 2022. The Policy is available at https://www.3mindia.in/3M/ en_IN/company-in/about-3m/financial-facts-local/ and the same is annexed as "Annexure J", which forms part of this report.

Transfer of dividend to the Investor Education and Protection Fund, if any: NA

TRANSFER TO RESERVES

Your Company does not propose to transfer any amounts to general reserves.

STATE OF COMPANYS AFFAIRS

Indias economy remained stable and showed robust recovery across all sectors, even as the global macroeconomic conditions posed challenges. Amidst global headwinds of supply chain constraints, rising inflation and energy costs among other factors, your Company continued to create value for all stakeholders with a strong performance, growing both topline and bottomline. The performance was the result of several enabling external factors combined with sharp focus on addressing customer problems, managing cost and prioritisation.

Strong growth in automobile and industrial market segments

Indias automotive industry is a key contributor to the countrys GDP and manufacturing sector. In addition, the growing adoption of electric vehicles has opened up opportunities for your Company to accelerate new products and solutions. Other solutions for the automative value chain included adhesives, abrasives and solutions for the automotive aftermarket segments. Your Company continued to increase penetration in various segments of the broader industrial market.

Increased Government spending on infrastructure projects

Enhanced capex outlays in the Governments budget towards modernisation of roads, railways, development of regional airports and key infrastructure projects offered growth opportunities for your Companys transportation safety solutions, commercial and industrial solutions.

Attractive policy initiatives for emerging sectors

The policy initiatives of the Government around investing under the Product Linked Incentive Scheme (PLI) schemes for growing sectors such as mobile phones, electronics manufacturing, defence etc. have had a positive impact on the manufacturing ecosystem. Your Company aligned with key manufacturing companies as a supplier of material to promote manufacturing.

Growth in modern trade and ecommerce channels

During the year, domestic consumption improved and contributed to the growth in modern trade and ecommerce channels. This helped enhance penetration of several consumer products from your Companys home improvement and cleaning portfolio while driving market share.

Discipline in operational execution

Your Company maintained a stable cash position and managed cost across all aspects of the business. We addressed inflation through price actions and proactively reduced costs to overcome other constraints throughout the year.

Managing supply chain and raw material

During FY 22-23, your Companys sourcing operations leveraged softening markets and secured cost reduction across major raw materials, packaging materials and logistics.

On a standalone basis, your Companys revenue from operations increased by 21.28% at 373,344.21 lakhs for the financial year ended March 31, 2023 compared to 307,830.08 lakhs in the previous financial year. The Profit before Interest and Depreciation is 62,401.29 lakhs compared to 41,660.78 lakhs for the previous financial year. Profit before Tax is 56,079.61 lakhs compared to 35,969.60 lakhs for the previous financial year. The operating margin for the current year is 16.43% compared to 13.38% for the previous financial year. Total Comprehensive Income is 41,658.80 lakhs compared to 26,727.38 lakhs for the previous financial year. Export Sales is 2,188.81 lakhs for the financial year ended March 31, 2023 compared to 2,385.65 lakhs in the previous financial year, a decrease of 8.25% due to lower demand in the global market.

On a standalone basis, the Safety and Industrial business increased by 17.17%; Transportation business increased by 33.79%; Health Care business increased by 14.14%; and Consumer business increased by 5.73%.

The Earnings Per Share (Basic and Diluted) of the Company for FY 22-23 was 369.41 per share as compared to 236.28 per share in the previous financial year, with an increase of 56.34%. Detailed analysis of the performance has been discussed in the Managements Discussion and Analysis Section of the Annual Report.

Portfolio Management

On July 26, 2022, 3M Company, USA (Promoter of the Company) had announced its plans to Spin-Off Health Care Business. The Board of Directors at the meeting held on May 30, 2023, discussed the implication on the business of 3M India Limited (‘the Company) in relation to the decision of 3M Company, USA to spin-off its global healthcare business into a stand-alone public company, Accordingly, the Board of Directors noted the proposal from 3M Company, USA for healthcare business of the Company to continue to be operated by the Company. In this regard, a contract manufacturing and distributorship arrangement is to be entered into between the new Health Care Company (and/ or one or more of its affiliates) and the Company for certain 3M Health Care products. Pursuant thereto and after having reviewed various possible options, the Board of Directors of your Company have granted approval for commencing discussion and negotiations with 3M Company, USA (and other relevant entities) in respect of the aforesaid manufacturing and distributorship arrangement.

Further on December 20, 2022, 3M Company, USA had announced exiting per-and polyfluoroalkyl substance (PFAS) Manufacturing by the end of 2025.

Scheme of Arrangement between the Company and 3M Electro & Communication India Private Limited

The Boards of Directors of the Company and of 3M Electro & Communication India Private Limited (3M E&C), wholly owned subsidiary of the Company at their Meetings held on September 17, 2021 had approved the Scheme of Amalgamation of 3M E&C with the Company under Sections 230 to 232 of the Companies Act. 2013 read with the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. The Appointed Date fixed under the Scheme was April 01, 2021. The Scheme of Amalgamation of 3M E&C with the Company has been filed with National Company Law Tribunal (NCLT) to amalgamate the wholly owned subsidiary. As on date of approval of financial statements, the matter is pending with NCLT.

Information Technology

Your Company operates an Information Security Management System (ISMS), centered at the Head Office, St. Paul, USA which is certified to the requirements of ISO/ IEC 27001:2013 and has continued to meet the certification requirements since 2014. In 2022, we added ISO/IEC 27017:2015 requirements for cloud services. Enhancing and optimising cybersecurity protection continues to remain one of the top priorities. Your Company provides regular security awareness sessions to employees to understand the maturity level towards new age phishing attacks. Awareness communications include monthly phishing campaigns to all users as well as communications on security awareness and training features which promote a security culture within the Company. Other frameworks include, NIST CSF (The National Institute of Standards and Technologies, Cybersecurity Framework) which is a crossindustry standardised framework that several organisations use to manage their cybersecurity programmes. NIST CSF provides a common language and lifecycle approach to understand, manage and express cybersecurity risks. It helps identify and prioritise actions to reduce risk and aligns policy, business and technology approaches to manage that risk. The cybersecurity landscape is constantly evolving and new threats and challenges emerge. Your Company consistently reviews and re-evaluates its capabilities to identify and respond to these threats.

Supply Chain

Global transportation has improved considerably vis-a-vis the previous year, stabilising to pre-pandemic levels due to the de-congestion of various ocean / air lanes, improved container availability and shipping lines operating at full capacity. This has resulted in better lead times, in turn delivering goods to customers.

Contribution to Exchequer

During FY 22-23, the Company paid various taxes on account of its business/operation viz., CGST, IGST, Direct Taxes and Customs Duty amounting to 132,553 lakhs in aggregate.

Investments

Capital Investments during FY 22-23 was 6,009.47 lakhs (Net of capital work-in-progress and capital advances) (PY 21-22: 6,999.06 lakhs).

INFORMATION ON THE FINANCIAL PERFORMANCE/ FINANCIAL POSITION OF THE SUBSIDIARIES/ ASSOCIATES/JOINT VENTURE

In accordance with Section 129(3) of the Companies Act, 2013, a statement containing salient features of the financial statement of the Subsidiary Company in Form AOC-1 is provided as "Annexure K", which forms part of this report.

3M Electro & Communication India Private Limited (3M E&C)

During the year under review, the revenue from operations of 3M E&C increased to 28,525.29 lakhs compared to 26,313.50 lakhs in FY 21-22. The Profit before tax for FY 22-23 was 4,682.33 lakhs as against 782.21 lakhs in FY 21-22. The Profit after tax for FY 22-23 was 3,505.66 lakhs as against 579.60 lakhs in FY 21-22.

The Total Comprehensive Income was 3,502.20 lakhs for FY 22-23 as against 596.99 lakhs in FY 21-22.

Highlights of 3M E&C

• The Electronics sector continues to get policy & Government support. Policymakers have laid emphasis to encourage sustainable manufacturing and export of electronics from India. Government has taken several measures for the growth of the exports of electronics hardware sector. The Semicon India Programme with an incentive outlay of ~$10 billion was launched with a vision to develop a sustainable semiconductor and display ecosystem in the country. This programme will establish India as global hub for semi conductor manufacturing, promote self-reliance, strengthen resilience in global supply chains and pave the way for Indias technological leadership in the industry.

• Union budget 2023 has earmarked 808,300 lakhs for Production Linked Incentive schemes (PLI) with significant outlay for large- scale electronics manufacturing.

• While domestic consumption is driving the increase in manufacturing of mobile handsets, exports have surged ~56% Y-O-Y and is expected to touch 1 to 1.2 trillion by financial year 2024.

• Your Company has been a material supplier to this segment globally and will continue to facilitate supply chain movement to the tier suppliers to enable more local content.

In accordance with the third proviso to Section 136(1) of the Companies Act, 2013, the Audited Financial Statements of the Subsidiary Company for FY 22-23 have been placed on the website of the Company https://www.3mindia. in/3M/ en_IN/company-in/about-3m/financial-facts-local/.

MATERIAL CHANGES AND COMMITMENTS

There have been no material changes and/or commitments affecting the financial position of the Company since the close of the financial year and till the date of this report.

CHANGE IN THE NATURE OF BUSINESS

There were no changes in the nature of business during the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report is annexed herewith as "Annexure A", which forms part of this report.

CORPORATE GOVERNANCE AND SHAREHOLDER INFORMATION

A separate Report on Corporate Governance in terms of Regulation 34 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as "Listing Regulations") along with a Certificate from a Practising Company Secretary regarding compliance to the conditions stipulated under Chapter IV of the Listing Regulations is provided as "Annexure B", which forms part of this report.

BUSINESSRESPONSIBILITYANDSUSTAIN ABILITY REPORT

A separate Section on Business Responsibility and Sustainability Report (BRSR) is annexed as "Annexure C" and forms a part of this Annual Report as required under Regulation 34(2)(f) of the Listing Regulations.

SHARE CAPITAL EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS

The Company has only one class of Share, i.e. Equity Share with a face value of 10/- each. The Authorised/Issued/ Subscribed and fully Paid-up Share Capital as at March 31, 2023 is 112,650,700 (divided into 1,12,65,070 Equity Shares of 10/- each).

During the year under review, the Company has not issued Equity Shares nor Shares with differential voting rights nor granted Stock Options nor Sweat Equity.

LISTING WITH STOCK EXCHANGES

The Company has paid the Annual Listing Fees for FY 23-24 to National Stock Exchange of India Limited and BSE Limited where the Companys Equity Shares are listed.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Appointment and Re-appointment:

The following Appointment and Re-appointment were made during the financial year till the date of the report:

• Based on the recommendation of the Nomination and Remuneration Committee, the Board at its Meeting held on May 27, 2022 appointed Ms. Vidya Sarathy (DIN: 01689378) as an Additional Director and Wholetime Director (designated as "Whole-time Director and Chief Financial Officer") of the Company for the period from June 1, 2022 to February 21, 2026 (till the date of her superannuation), categorised as Executive, NonIndependent Director. The Members of the Company have approved her appointment by way of an Ordinary Resolution at the 35th Annual General Meeting held on August 25, 2022.

• Ms. Yun Jin (DIN: 09474323) will retire by rotation at the ensuing Annual General Meeting and being eligible offers herself for re-appointment. The details of Ms. Yun Jin are provided in the Notice of the Annual General Meeting. The Board of Directors recommends her re-appointment.

• At the Board meeting held on August 10, 2022 Mr. Pratap Rudra Bhuvanagiri was appointed as the Company Secretary and Compliance Officer (Key Managerial Personnel) of the Company with effect from August 17, 2022. Ms. Vidya Sarathy was Compliance Officer of the Company for the period from May 11, 2022 till August 16, 2022.

Resignations:

The following resignations were accepted during the financial year and till the date of the report:

• Mr. James Ernest Falteisek (DIN: 08792857) resigned as a Director of the Company from the close of India business hours of May 30, 2023 consequent upon his retirement from the 3M Group. The Board places on record its appreciation for the contributions made by him to the progress of the Company during his tenure as Director of the Company.

• Ms. Mamta Janak Gore (DIN: 08792863), resigned as a Director of the Company from the closing hours of May 27, 2022 consequent upon taking up higher role within the 3M Group. She was the Non-Executive Director of the Company with effect from June 1, 2021 till May 27, 2022. The Board places on record its appreciation for the contributions made by her to the progress of the Company during her tenure as Director of the Company.

• Mr. V. Srinivasan, Company Secretary and Compliance Officer, (Key Managerial Personnel) resigned as Company Secretary and Compliance Officer from the closing hours of May 10, 2022, to pursue his career outside of the Company. The Board places on record its appreciation for the contributions made by him during his tenure as Company Secretary and Compliance Officer of the Company.

As at the financial year ended March 31, 2023, Mr. Ramesh Ramadurai, Managing Director, Ms. Vidya Sarathy, Whole-time Director and Chief Financial Officer and Mr. Pratap Rudra Bhuvanagiri, Company Secretary and Compliance Officer, were the Key Managerial Personnel of the Company.

DECLARATIONS FROM INDEPENDENT DIRECTORS

The Company has received necessary declarations from each Independent Director of the Company under the provisions of Section 149(7) of the Companies Act, 2013, that they meet the criteria of Independence laid down under the provisions of Section 149(6) of the Companies Act, 2013 read with Listing Regulations. All the Independent Directors have also confirmed under Regulation 16(b) of SEBI (LODR) Regulations, 2015 that they are not NonIndependent Director of another Company on the Board of which any Non-Independent Director of the listed entity is an Independent Director.

DETAILS OF BOARD AND COMMITTEE MEETINGS DURING THE FINANCIAL YEAR

During FY 22-23, Five (5) Meetings of the Board were held. The Company has Five (5) Board Committees. The composition and number of Meetings attended by each Director/Committee Member along with other Committee Meetings details are furnished in the Corporate Governance Report.

COMPOSITION OF AUDIT COMMITTEE

As on the financial year ended March 31, 2023, the Audit Committee of the Company consisted of Three (3) Non-Executive Independent Directors and One (1) NonExecutive Director and all of them have financial and accounting knowledge. The Members of the Committee as on March 31, 2023, are Mr. Biren Gabhawala (Chairman), Mr. Bharat D. Shah, Ms. Radhika Rajan and Ms. Yun Jin. The Committee comprises majority of Independent Directors. The Board has accepted all the recommendations made by the Audit Committee during the year under review.

NOMINATION AND REMUNERATION COMMITTEE POLICY

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a Policy for the selection and appointment of Directors, Senior Management and other employees and their remuneration. The Policy is available at https://www.3mindia.in/3M/en_IN/company- in/about-3m/financial-facts-local/.

The composition, criteria for selection of Directors and the terms of reference of the Nomination and Remuneration Committee is stated in the Corporate Governance Report.

ANNUAL BOARD EVALUATION

The Board of Directors has carried out an annual evaluation of its own performance, its Committees and Directors pursuant to the requirements of the Companies Act, 2013, Listing Regulations and as per the Guidance Note issued by SEBI. Further, the Independent Directors, at their separate meeting held during the year, reviewed the performance of the Board, its Chairman and Non-Executive Directors and other items as stipulated under the Listing Regulations. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

DETAILS OF REMUNERATION OF DIRECTORS

Disclosure pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed herewith as "Annexure D", which forms part of this report.

REMUNERATION RECEIVED BY MANAGING/ WHOLE TIME DIRECTOR FROM HOLDING OR SUBSIDIARY COMPANY

During the year under review, no Commission or Remuneration was paid to the Executive Directors from Holding/ Subsidiary Companies.

DIRECTORS RESPONSIBILITY STATEMENT

To the best of our knowledge and belief and according to the information and explanations obtained by us, your Directors state in terms of Section 134 (5) of the Companies Act, 2013 (the Act):

(a) that in the preparation of the annual financial statements for the year ended March 31, 2023, the applicable accounting standards have been followed

along with proper explanation relating to material departures, if any.

(b) that they had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2023 and of the profit of the Company for the year ended on that date.

(c) that they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(d) that they had prepared the annual financial statements on a going concern basis.

(e) that they had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

(f) that they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

The Companys Internal controls is aligned to Global 3Ms internal control over financial reporting which is based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Controls — Integrated Framework (2013). The internal controls framework essentially has two elements viz., (1) structures, policies and guidelines designed to achieve efficiency and effectiveness in operations and compliance with laws and regulations and (2) an assurance function provided by Internal Audit.

The Directors have laid down internal financial controls to be followed by the Company and such policies and procedures are adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

The Company has in place adequate systems of internal controls commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use or losses, executing transactions with proper authorisation and ensuring compliance of corporate policies.

The Company, through its own Corporate Internal Audit Department, carries out periodic audits to cover all the offices, factories and key areas of business segments based on the plan approved by the Audit Committee and bring out any deviation to internal controls procedures. The Internal Auditor functionally reports to the Audit Committee and administratively to the Managing Director. The observations arising out of audit are periodically reviewed and compliance ensured. The summary of the Internal Audit observations and status of the implementation is submitted to the Audit Committee of the Board of Directors. The status of implementation of the recommendations is reviewed by the Committee on a regular basis and concerns, if any, are reported to the Board.

DISCLOSURE REGARDING FRAUDS

During the year under review, there were no frauds reported by the Auditor to the Audit Committee or to the Board.

DEPOSITS

During the year under review, the Company has neither accepted nor renewed any deposits from public within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

During the year under review, the Company has not given any Loans, provided any guarantees or made any Investments covered under Section 186 of the Companies Act, 2013.

RELATED PARTY TRANSACTIONS

All Related Party Transactions (RPTs) which were entered into during the financial year were on an arms length basis and were in the ordinary course of business. All RPTs are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee is obtained on a yearly basis for the transactions which are foreseeable and repetitive in nature. A statement exhibiting details of all actual RPTs versus the approval is placed before the Audit Committee for approval on a quarterly basis. A Policy on RPTs as approved by the Board is available at https:// www.3mindia .in/3M/en_IN/company-in/about-3m/ financial-facts-local/.

The Company being a part of 3M conglomerate, has rights to carry out the business within India and accordingly, has access to the Groups synergies, state of the art products and technologies, competencies and "3M" brand name which are very critical and essential to carry out its business operations more efficiently in an increasingly globalised and competitive scenario. As a part of its regular business, the Company purchases, avails/renders services from/to 3M Company, USA and/or its group companies at arms length basis. None of the Directors and the Key Managerial Personnel has any pecuniary relationships or transactions vis-a-vis the Company.

The RPTs are necessary, normal to business and play a significant role in the Companys business operations and also form an integral part of the Companys business. An analysis of all the RPTs entered into & by the Company and the basis of charge was undertaken through a third-party professional firm.

The Company had taken approval of the Members for all material RPTs for the estimated transactions for Three (3) financial years starting from April 1, 2020 to March 31, 2023 at the Annual General Meeting held on August 26, 2020.

Further the Company had taken the approval of Members of the Company through Postal Ballot notice dated November 9, 2022 for the material related party transactions to be entered by the Company with 3M Company, USA and 3M Innovation Singapore Pte Ltd., from December 21, 2022 to December 20, 2023 (1 Year).

The Company proposes to seek the approval of the Members for material related party transactions to be entered by the Company with 3M Company, USA and 3M Innovation Singapore Pte Ltd., from the 36th Annual General Meeting to upto the 37th Annual General Meeting. The estimated/ proposed RPTs are in the Ordinary and normal course of business and on Arms Length basis and accordingly the Board recommends the Ordinary Resolution set forth in the Notice for the approval of the Members.

Details of the related party transactions as required under Section 134(3)(h) read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as "Annexure E", which forms part of this Report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

3M improves lives and builds sustainable communities through impactful social investments and employee engagement. The Companys CSR initiative is anchored on three pillars of impact - Education, Community and Environment. During FY 22-23, your Company deepened its impact with a combination of multi-year programmes and new initiatives to meet its goals under Education and Community. These projects addressed the needs of underserved sections of communities around the Companys areas of operation and have been implemented in accordance with the activities listed under Schedule VII of the Companies Act, 2013.

EDUCATION:

During FY 22-23, the Company supported education initiatives through partnerships with non profit organisations to advance equitable STEM (Science, Technology, Engineering, Maths) outcomes.

1. Project Nanhi Kali: Educating the Girl Child:

Investing in girl child education transforms communities. Your Company continued to support the Project Nanhi Kali programme in its fifth year of implementation reaffirming 3Ms global commitment to improve academic outcomes and provide transformational opportunities for the next generation.

This after school programme implemented in partnership with the K. C. Mahindra Education Trust sponsors 2,861 underprivileged girl students from primary and secondary classes across 178 Academic Support Centers in the rural district of Ambegaon in Pune, Maharashtra. The Academic Support Centers were fully functional throughout the financial year after disruptions during the COVID years. Key outcomes during the year broadly cover learning proficiency, retention, holistic development and engagement.

• Project Nanhi Kali provided approximately 450 hours of training to every girl in the project and 30 hours of training to every Community Associate.

• During FY 22-23, 143 girls appeared for the 10th standard examination in March 2023, with a 99% pass percentage and 37 students passed with distinction. Three assessments were conducted during the year. The average score in the three subjects being measured are 60% in Maths, 60% in English and 65% in the local language, Marathi. Of the Nanhi Kalis who attempted all three assessments, 85% showed an improvement in learning levels in at least one subject.

• The retention rate for the year was 90%. A total of 289 Nanhi Kalis dropped out of the project, mainly due to migration of parents to other areas where Project Nanhi Kali is non-operational. Community Associates and Programme Officers encourage the parents of any Nanhi Kali who drops out of the programme to continue their education in another school. A positive outcome is that while these girls have joined either private or other government schools, they have not dropped out of the education system.

• To encourage extra-curricular activities, Project Nanhi Kali conducts the annual Toofaan Games at the village, district and National levels across all the Academic Support Centers in India. Two Nanhi Kalis supported by the Companys CSR programme were selected to participate at the National level of the Toofaan Games with one of the girls bagging the gold medal in the 50m race.

• On the occasion of International Day of the Girl Child in October 2022, the Company felicitated 55 graduates out of the 87 students who completed Class 10. Most of graduates passed with distinction. The top scoring student (94.60%) was selected for the Mahindra All India Talent Scholarship.

• In March 2023, the Company hosted 25 Nanhi Kali students at 3Ms manufacturing site in Ranjangaon, Pune, for an industrial exposure visit. The Nanhi Kalis, many of whom were travelling out of their village for the first time, got to experience first-hand how a factory works and interact with 3M women employees on the shop floor. 3M Manufacturing Womens Leadership Forum led this visit to enhance the learning and exposure of the students to potential careers in manufacturing.

This programme remains committed to helping the girls stay in school through various interventions to enhance their learning and overall development, enabling them to grow into empowered young women.

2. 3M Wonder Tinkering Labs Programme to encourage and promote Science:

3M is committed to ensuring that underrepresented and under-resourced students and teachers have high- quality tools, resources and knowledge to succeed in STEM and pursue a love for science. During FY 22-23, the Company laid the foundation for a multi-year STEM experiences programme called 3M Wonder Tinkering Labs in partnership with Learning Links Foundation to empower Government school children (Shirur taluk) with 21st century skills (communication, critical thinking, creativity and collaboration).

The programme provides students from Grade 5-10 with a rich STEM learning experience including Design through the use of technology and pedagogy to spark critical thinking and problem-solving skills. In each school, the learning is imparted through a STEM studio. These studios are equipped with Do-It- Yourself Tinkering kits containing tools to work with technologies such as sensors, electronics, electrical circuits, 3D printing etc. Innovation coaches act as mentors guiding the students to apply learning through practical problem solving.

During FY 22-23, the project activities included conducting situational analysis at Government schools to identify the 10 schools for the pilot programme, recruitment of teams and innovation coaches for each of the schools, procurement of the tinkering kits, laptops and other devices, physical infrastructure to set up the STEM studios and orientation sessions for school leadership and programme teams.

The labs will be operational from the academic year in FY 23-24.

COMMUNITY:

During FY 22-23, healthcare continued to be an important theme for community interventions. Initiatives included providing access to primary healthcare services in rural communities, strengthening healthcare infrastructure through sustainable models and supporting Government of Indias COVID vaccination programme.

1. Solar powered Healthcare infrastructure programme:

3M is committed to support the transition to renewable energy to create a more sustainable world. The Company partnered with Selco India & Selco Foundation to install rooftop solar panel units at 8 Primary Health Centers (PHCs) catering to 7 villages in Shirur Taluk including Ranjangaon where 3M Indias plant is located. The project received further investment during the financial year to expand the solar unit installations to cover 39 sub centers within the Taluk to ensure last mile access. With this off the grid solar power system, the PHCs and sub centers are ensured reliable power and can serve their communities with timely healthcare services despite frequent power fluctuations and outages. The solar power system has been designed to meet critical needs of the centers including maintaining the vaccine cold chain, labour rooms and strengthening other aspects of service delivery, especially attending to emergencies. By addressing the fundamental requirement of power, this model will ensure that all the health centers in the district are self-sufficient and able to cater to the needs of a population of close to 350,000 people residing within the Taluk. Being solar systems, the initiative also contributes to significant environmental impact in the longer term, reducing carbon emissions of up to 120 metric tonnes.

2. Smile on Wheels: Providing diagnostic and preventive healthcare access to rural communities:

During FY 22-23, the Company continued to support the Mobile Primary Healthcare programme in partnership with Smile Foundation in some of the aspirational districts. This multi-year programme has completed two years of operations at four locations, Siddharthnagar in Uttar Pradesh, Balangir in Odisha, Goalpara in Assam and Ranjangaon in Maharashtra. The vans provide preventive, promotive and curative healthcare facilities to underserved communities in the villages in these districts.

During the flood situation in Assam in May 2022, the mobile van played a critical role in providing access to healthcare and relief materials to affected communities. The van and the medical team were able to reach two flood-affected villages where they catered to the needs of 256 beneficiaries.

The vans average over 6,000+ patient consultations every month and have covered about 107,826 beneficiaries since operations began in September 2021. During FY 22-23, a total of 75,252 beneficiaries benefitted from the programme at all four locations.

3. Community Vaccination programmes in underserved communities in Urban areas (Bangalore & Pune):

The Company continued to support Government of Indias COVID vaccination initiative during FY 22-23. The last phase of the Companys COVID vaccination community programme, initiated in 2021, was implemented over April-May 2022. The programmes met their respective milestones of 50,000 vaccinations at PCMC (Pimpri Chinchwad Municipal Corporation), Pune and 25,000 vaccinations in Bangalore. Both drives were successful in mitigating the risk of covid infection within identified urban communities. Vaccine

on Wheels and their innovative model of bringing vaccinations closer to the slum communities along with community mobilisation efforts led by United Way of Bengaluru, working alongside local municipal authorities helped ensure the coverage of hard-to- reach areas and underserved populations.

The Annual Report on CSR activities is annexed herewith as "Annexure F", which forms part of this report.

DETAILS OF REMUNERATION OF EMPLOYEES

Pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, statement showing details of top Ten (10) employees in terms of remuneration drawn during the financial year and other employees of the Company employed throughout the year and employees employed for part of the year who were in receipt of remuneration of 1.02 crores or more per annum and 8.50 lakhs or more per month respectively is annexed herewith as "Annexure G", which forms part of this report.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO

The Information on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo stipulated under Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8(3) of The Companies (Accounts) Rules, 2014 is annexed as "Annexure H", which forms part of this report.

RISK MANAGEMENT POLICY

The Company has a Risk Management Policy pursuant to the requirements of Listing Regulations. The details of the Risk Management Committee and its terms of reference are set out in the Corporate Governance Report forming a part of the Boards Report.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There were no significant and material orders passed during FY 22-23 by the Regulators/Courts which would impact the going concern status of the Company and its future operations.

INSOLVENCY AND BANKRUPTCY CODE, 2016

There was no application made nor did the Company receive notice of any proceedings against it as pending under the Insolvency and Bankruptcy Code, 2016 during FY 22-23.

VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Company has an effective vigil mechanism by way of the Business Conduct Concern Reporting Policy (Whistle Blower Policy) for upholding 3Ms Code of Conduct. The details of the said Policy are stated in the Corporate Governance Report and also available at https://www.3mindia.in/3M/ en_IN/company-in/about-3m/financial-facts-local/.

During the year, the Company reached out to employees through e-learning modules to create greater awareness with respect to its Fair Competition and Anti-Bribery and Corruption. This has helped in achieving a high level of engagement and compliance among the employees.

STATUTORY AUDITOR

Messrs. BSR & Co. LLP, Chartered Accountants, Bengaluru (ICAI Firm Registration No. 101248W/W-100022) were re-appointed as the Statutory Auditor of the Company at the 34th Annual General Meeting held on August 26, 2021 to hold office for a second term of five (5) years i.e. from the conclusion of the 34th Annual General Meeting till the conclusion of the 39th Annual General Meeting to be held in the year 2026. The requirement of seeking ratification of the Members for continuance of their appointment has been withdrawn consequent upon the changes made by the Companies (Amendment) Act, 2017 with effect from May 7, 2018. Hence, the Resolution seeking ratification of the Members for their appointment is not being placed at the ensuing 36th Annual General Meeting.

COST AUDIT

Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014, the cost audit records maintained by the Company in respect of the products covered under the said rules are required to be audited by a Cost Accountant. Accordingly, the Board of Directors of the Company at its Meeting held on May 30, 2023 on the recommendation of the Audit Committee, approved the re-appointment of Messrs. Rao, Murthy & Associates, Cost Accountants, Bengaluru, (Firm Registration No. 000065), to conduct the audit of the cost records of the Company for FY 23-24 at a remuneration of 475,000/- (Rupees Four lakhs Seventy-Five Thousand only) plus taxes as applicable and out of pocket expenses at actuals.

The Audit Committee has also received a certificate from the Cost Auditor certifying their independence and arms length relationship with the Company.

As required under the Companies Act, 2013, the remuneration payable to the Cost Auditor is required to be placed before the Members at the General Meeting for their ratification. Accordingly, a resolution seeking ratification of the remuneration payable to Messrs. Rao, Murthy & Associates, Cost Accountants, Bengaluru is included in the Notice convening the Annual General Meeting.

For the financial year ended March 31, 2022, the Cost Audit Report submitted by Messrs. Rao, Murthy & Associates, Cost Accountants, Bengaluru, was filed with the Ministry of Corporate Affairs, well within the due/extended date. Messrs. Rao, Murthy & Associates, has confirmed the cost records for the financial year ended March 31, 2022 are free from any disqualifications as specified under Section 141(3) and proviso to Section 148(3) read with Section 141(4) of the Act.

SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company had appointed Mr. Parameshwar G. Bhat, Company Secretary in practice (FCS:8860, CP:11004) to undertake the Secretarial Audit of the Company for FY 22-23. The Report of the Secretarial Audit Report is annexed herewith as "Annexure I", which forms part of this report.

The Company had undertaken an audit for FY 22-23 for all applicable compliances as per SEBI Regulations and Circulars/Guidelines issued thereunder. The Annual Secretarial Compliance Report has been submitted to the stock exchanges within 60 days of the end of the financial year-.

EXPLANATIONS IN RESPONSE TO AUDITORS QUALIFICATIONS

During the year under review, there were no qualifications, reservations or adverse remarks made by the Statutory Auditors / Secretarial Auditor in their respective Reports.

COMPLIANCE WITH SECRETARIAL STANDARDS

During FY 22-23, your Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

ANNUAL RETURN

Pursuant to the provisions of Section 134(3)(a) and Section 92(3) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the draft of the Annual Return in Form MGT 7 of the Company for the financial year ended March 31, 2023 is uploaded on the website of the Company and can be accessed at https:// www.3mindia .in/3M/en_IN/company-in/about-3m/ financial-facts-local/.

DISCLOSURES UNDER THE SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

The Company has a Prevention of Sexual Harrasment Policy in line with the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Policy is available on the website of the Company https://www.3mindia.in/3M/en_IN/ company-in/about-3m/financial-facts-local/. Internal Complaints Committees (ICC) have been set up to redress complaints received regarding sexual harassment.

Status of Complaints during FY 22-23:

1. Number of complaints of sexual harassment received During FY 22-23: Nil

2. Number of complaints disposed off during FY 22-23: NA

3. Number of cases pending for more than 90 days: Nil

4. Number of workshops or awareness programmes carried out: 3 (Three)

5. Remedial measures taken by the Company:

• A mandatory interactive virtual training session was conducted for all 3M India employees on "Sexual Harassment at the Workplace". This session reinforced the understanding of what constitutes sexual harassment, complaint process and behavioral dos and donts at the workplace.

• In-depth capacity building training was conducted for all Internal Committee members.

• Train the Trainer session was conducted for all Internal Committee members and HR representatives. This session equipped participants with the knowledge & resources to conduct general awareness sessions at their respective 3M locations.

HUMAN RESOURCES

During the financial year, the Company undertook many initiatives to increase organisational capability and productivity to be value driven and future ready. As on March 31, 2023, the Company had an employee strength of 1,108 personnel.

OTHER DISCLOSURES

During the financial year under review, the Company:

1. has not bought its own Shares nor has it given any loan to the employees (including KMPs) of the Company for purchase of the Companys Shares.

2. has not issued any Shares to trustees for the benefit of employees.

3. there was no revision in the Financial Statements.

ENVIRONMENT, HEALTH AND SAFETY

Your Company is committed to environment, health and safety improvements throughout our operations and products. Our highest priority is the safety of our employees and the public. Our responsibility extends to the environment in and around our operations through robust environmental management systems, conservation and efficient use of resources and ensuring that pollution is prevented at source.

ENVIRONMENT

Your Company has three (3) manufacturing plants operating in India. All three plants have Environmental Management Systems (EMS) certified to the ISO 14001: 2015 environmental management systems standard. We continue to be guided by our global 3M EMS framework, which provides consistency and structure for implementing programmes and helps us be proactive in our environmental focus.

The parent companys Global Strategic Sustainability Framework directs local efforts to create impact:

• Science for Circular: Design solutions that do more with less material, advancing a global circular economy.

• Science for Climate: Innovate to decarbonise industry, accelerate global climate solutions and improve our environmental footprint.

• Science for Community: Create a more positive world through science and inspire people to join us.

Raw Materials: We believe its our responsibility to design circularity into 3M products and packaging while also enhancing the circularity of water, packaging and waste in our own operations. Our Sustainability Value Commitment (SVC) helps us embed circular economy principles so we design products for durability, leveraging renewable content, recycled content and using less raw material.

Waste: Your Company is aligned to the global sustainability goal of reducing dependence on virgin fossil-based plastic use in our products by 125 million pounds by the end of 2025 and the Ministry of Environment, Forest and Climate Change mandated Extended Producer Responsibility for effective management of plastic packaging waste.

End-of-life management of your Companys post-consumer plastic packaging waste is executed by Central Pollution Control Board authorised plastic waste processors in designated states through tie-ups with urban local bodies, collection centres, materials recovery facilities, logistic partners for collecting and transporting plastic waste to plastic waste processors unit. Technologies and equipments for material recovery of plastic packaging waste encompasses mechanical recycling methods and conversion to recycled plastic granules which are further used for manufacturing plastic products, thus promoting circular economy.

During FY 22-23, your Company has partnered with registered plastic waste processors to collect and recycle 1,004.536 metric tonnes of plastic waste, fulfilling the Extended Producer Responsibility obligations under Plastic Waste Management (Amendment) Rules, 2022. This has been achieved in accordance with the Brand Owner registration granted by the Central Pollution Control Board and action plan on the Centralized Extended Producers Responsibility Portal for Plastic Packaging.

The non-recyclable plastic waste material is redirected to coprocessing activities in cement kilns. During FY 22-23, the total waste from our manufacturing sites converted to energy was 2,580 metric tonnes, leading to a reduction of CO2 equivalent emissions by 7456 MT-CO2 in FY 22-23.

We drive "zero waste" thinking with our product designs, process technologies and material reduction work within our manufacturing operations. During FY 22-23, we achieved a waste reduction of 205 Kgs of Waste / MT of tonnes of production.

Energy & Climate: 3M Company has committed to achieving carbon neutrality by 2050, through the reduction of greenhouse gas emissions and increasing share of renewable energy, moving to 100% renewable sources of power by 2050. In India, the Company has invested in an on-site solar installation with a total capacity of 1,250kwp at our biggest manufacturing site in Pune. We converted the unused rooftop of the facility into a solar power plant and generating annual power of 6,25,000 kw currently contributing to reducing carbon emissions annually by 500 metric tonnes. At the Companys Bangalore manufacturing site, we have partnerships with the local utilities to purchase solar power from the grid through solar wheeling. The share of renewable energy is growing with these initiatives which is at 21.3 % of total energy consumption.

Water- Reducing Water Use in Manufacturing Operations:

3M Company is committed to reducing water use at its worldwide manufacturing facilities by taking immediate steps to drive reductions in current water use and over the longer-term; aiming for a 10% reduction in water use by 2022, 20% reduction by 2025 and 25% reduction by 2030. Our Water Stewardship Standard demonstrates our commitment to maintaining sustainable water resources to secure social equity, economic growth and environmental protection.

At the Companys manufacturing sites, several initiatives are underway to conserve water. Advances in data analytics capabilities are expanding visibility, accuracy and opportunity for innovation in our monitoring and measurement efforts.

Manufacturing sites practice Zero Water Discharge through numerous water conversation initiatives.

• A full-capacity rainwater harvesting system at Ranjangoan facility collects rainwater from the rooftops and roads into a rainwater recharge borewell.

• Ongoing water monitoring, measurement and data analysis help identify and quickly address leaks at all plants.

• All new manufacturing processes align with the principle of zero water discharge.

• Treated water from effluent treatment plants are taken into the scrubber operations further reducing water consumption.

• Treated water from the sewage treatment plant is used for gardening and in restroom flushing.

• After reviewing the underground hydrant network, corroded pipes were brought above the ground at all plants to eliminate the root cause and correct leakages.

• Engagement drives were conducted at factories to identify and arrest the leakages.

• An online ozonator was installed for water disinfection and safe handling by gardeners.

• New drip irrigation lines were added in the garden area which eliminated the conventional flooding & better utilised available water.

• Leakage Survey was conducted across sites to rectify and arrest leakages.

During the year, total water consumption stood at 77,580 kiloliters.

HEALTH AND WELLNESS EFFORTS

During the year, the Company continued to identify potential risks to the health and safety of our employees and communities and took steps to update processes, product design and standards to address these risks, while driving an overall culture of excellence in EHS.

As the corporate initiative to drive more flexible working arrangements, ‘Work Your Way was rolled out across the organisation, the Company supported employees who opted for remote work with necessary infrastructure considering ergonomics and better working environment at home.

Over the year, there were several initiatives that promoted various aspects of health at the factories:

1. Medical Surveillance was provided to certain employees based on the job work assigned like the Pulmonary function test, vision test, Audiogram, etc.,

2. Hepatitis B Vaccination has been imparted to all the emergency response team members at all the sites.

3. Shopfloor awareness sessions on important observance days like World Hearing Day, World Heart Day, Womens Day and World Diabetes Day included communications, live demonstrations and Zumba exercise sessions to bring attention to various health issues.

4. Certified First Aid Training was provided to the first responders team.

5. Chemical Health Hazard Awareness session was organised to create awareness on the health impact of chemical exposure and control measures to avoid such exposure.

6. Blood donation camps are organised periodically to motivate employees to donate blood to those in need. At the Ahmedabad manufacturing site, employees families were invited to see and experience first hand the health & safety systems at the plant providing families reassurance on the safe working conditions on site. Special training on First aid was provided to the families including children and basic first aid kits for homes were distributed.

National Safety Month observed during March brought attention to several health related topics like first aid training, Bone density, Eye checkup, Body Mass Index, hearing conservation & women wellness for the contract workforce.

SAFETY SYSTEMS

3M continually strives to maintain the highest standard of safety at all workplaces to ensure people, assets and our businesses are operating in the most efficient manner. All of Companys manufacturing facilities have been certified by ISO 45001, a standard for management systems of Occupational Health and Safety Standards reinforcing the Companys commitment to leadership in safety and health. We utilise the Compliance & Audit Management & Metrics System (CAMMS) portal which is customised to 3M requirements to track and monitor all applicable EHS compliance and legal obligations.

All the three plants have successfully completed 3Ms EHS Global Audit which involved both element specific and regulatory focus audits without any primary audit finding.

Initiatives like the ‘See & Act programme enables the Company to strengthen the safety culture at 3M sites. The focus is not just the identification of Unsafe Acts and Conditions but to understand the root cause of their occurrence by having meaningful conversations with people on the shopfloor, engaging them in deriving solutions and making improvements. The Company has a resolution rate of 76% of problems identified through the ‘See & Act programme.

Zero Lost Time Injury is a key metric to uphold the safety performance. All manufacturing sites were able to maintain Zero Lost time injuries during the year due to continuous focus on preventive actions, EHS Element ownership through leaders with representation from supervisors and technical associates alike.

The Companys EHS Cultural Excellence programme lays down the execution model and set of manufacturing excellence principles which ensure a safe and healthy workforce. This framework covers sections like Ergonomics, Industrial hygiene, Process hazard management (PHM), Ventilation programs, Static Management plan, Combustible dust management, Safety trainings, Health and Wellness Programs. Our progress against each of these is assessed through our Internal Audit framework giving us the confidence on our sustained & functional Health and Safety management systems.

Ergonomics :

• Ergonomic solutions on the shop floor help employees improve their health condition and productivity. Each site has an ergonomics score driven by projects to reduce risks and improve processes.

Industrial Hygiene:

• Industrial hygiene monitoring i.e. Noise & Air monitoring was conducted for most of the processes and it was observed that no exposure level was exceeded.

• Ventilation and heat stress survey was carried out with the help of a subject matter expert to check the performance level of the existing systems and it was found to have no abnormalities.

Other safety projects include:

• All the three manufacturing facilities were provided with 3M Fall protection devices to reduce the risk while working at heights

• Skill development sessions were conducted for engineering contractors. Engineering contract employees working at heights must pass the vertigo test.

HEALTH AND WELLNESS EFFORTS

During the year, the Company continued to identify potential risks to the health and safety of our employees and communities and took steps to update processes, product design and standards to address these risks, while driving an overall culture of excellence in EHS.

As the corporate initiative to drive more flexible working arrangements, ‘Work Your Way was rolled out across the organisation, the Company supported employees who opted for remote work with necessary infrastructure considering ergonomics and better working environment at home.

Over the year, there were several initiatives that promoted various aspects of health at the factories:

1. Medical Surveillance was provided to certain employees based on the job work assigned like the Pulmonary function test, vision test, Audiogram, etc.,

2. Hepatitis B Vaccination has been imparted to all the emergency response team members at all the sites.

3. Shopfloor awareness sessions on important observance days like World Hearing Day, World Heart Day, Womens Day and World Diabetes Day included communications, live demonstrations and Zumba exercise sessions to bring attention to various health issues.

4. Certified First Aid Training was provided to the first responders team.

5. Chemical Health Hazard Awareness session was organised to create awareness on the health impact of chemical exposure and control measures to avoid such exposure.

6. Blood donation camps are organised periodically to motivate employees to donate blood to those in need.

7. At the Ahmedabad manufacturing site, employees families were invited to see and experience first hand the health & safety systems at the plant providing families reassurance on the safe working conditions on site. Special training on First aid was provided to the families including children and basic first aid kits for homes were distributed.

8. National Safety Month observed during March brought attention to several health related topics like first aid training, Bone density, Eye checkup, Body Mass Index, hearing conservation & women wellness for the contract workforce.

AWARDS AND RECOGNITION

Global Recognition: The Ethisphere? Institute recognised 3M Company as one of the Worlds Most Ethical Companies? for the 10th consecutive year. 3M is one of only nine industrial companies worldwide to receive this honour. This award showcases the Companys commitment to doing business the right way through the collective effort of all 3M employees around the world.

Customer Recognition: Your Company was awarded the Best Supplier of the Year award for FY 22-23 by one of Indias largest stainless-steel manufacturers.

Industry Recognition: Healthcare Business was recognised by The Economic Times as one of the Best Healthcare Brands of 2022, based on various parameters such as innovation, infrastructure, healthcare standards, patient satisfaction and brand loyalty.

Manufacturing Excellence: Your Companys manufacturing sites at Ranjangaon, Pune and Electronics city, Bengaluru received recognition from National level Kaizen competitions organised by the Confederation of Indian Industry (CII). Projects from both plants driving continuous improvement, innovation and breakthrough solutions were recognised with Gold and Silver awards.

Both manufacturing sites were also recognised with 3M Companys Global Quality Achievement awards for projects delivering high quality standards and customer satisfaction.

The Department of Factories, Boilers, Industrial Safety and Health, Government of Karnataka awarded one of your Companys EHS employees, with the Best Worker Award (3rd position) in the large industries category. This state level recognition is the highest honour bestowed on manufacturing workers for their focus on safety at the workplace.

Corporate Social Responsibility: The Ranjangaon Industrial Association recognised the Company for contributions to local communities through the implementation of multiple CSR programs including the solar powered health center infrastructure initiative in Shirur Taluk Ranjangaon, which is benefiting over 350,000 people.

• Over the course of the year, the Companys employees continued to receive numerous accolades for excellence in sales, marketing, technical and various support functions with several 3M Company, business and area level awards.

ACKNOWLEDGEMENT

Your Directors thank and acknowledge with gratitude the co-operation, assistance and support received from the Central Government, State Governments of Karnataka, Maharashtra and Gujarat, Bankers, Shareholders, Dealers, Vendors, Promoters of the Company and all other Stake holders.

The Directors also wish to place on record their sincere appreciation and gratitude towards the contribution made by every employee of the Company.

On behalf of the Board of Directors
Ramesh Ramadurai Vidya Sarathy
Managing Director Whole-time Director &
DIN: 07109252 Chief Financial Officer
Place: Bengaluru DIN: 01689378
Date: May 30, 2023