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Notes to Accounts of Berger Paints (India) Ltd.

Mar 31, 2017

1. The Company’s paint division (“the Business”) relating to 4 wheeler passenger cars and SUVs, 3 Wheelers and related ancillaries was transferred to Berger Nippon Paint Automotive Coatings Private Limited or BNPAC (Formerly known as BNB Coatings India Private Limited), an existing joint venture between Berger Paints India Limited and Nippon Paints Automotive Coatings Co. Ltd., Japan after the close of business hours of 30th June, 2016 on a slump sale basis at a consideration of Rs, 90 crores, paid in cash. By virtue of being a joint venture where Berger Paints India Limited holds 49% of the paid up share capital, BNPAC may be deemed to be a related party and the transaction was done at an arm’s length basis. The exceptional item for the year ended March 31, 2017 represents the profit on the transfer of the Business, being Rs, 86.67 crores, which is subject to tax.

2. The Company has provided for impairment in the carrying value of its investment in its wholly owned subsidiary, Berger Paints Cyprus Limited (BPCL) on account of losses sustained by the ultimate wholly owned subsidiary Berger Paints Overseas Limited (BPOL ) due to downturn in Russian economy which were reflected in the consolidated financial position of the Company. The Company had made an assessment of the fair value of the investments in Berger Paints Overseas Limited taking into account past business performance, prevailing business conditions and revised expectations about future performance. Based on the above factors and as matter of prudence provision of Rs, 28 crores towards impairment of such investment has been recognized in the accounts. The recoverable amount of the investment was determined at Rs, 37.12 crores, which was based on its value in use. This value in use calculation was carried out taking into account the discount rate of 14% per annum.

Note 3. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Note 4. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgments, Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. In the process of applying the Company’s accounting policies, management has made the following judgments, estimates and assumptions, which have the most significant effect on the amounts recognized in the Financial Statements.

Defined Employer Benefit plans

The cost and the present value of the defined benefit gratuity plan and other post-employment leave encashment benefit are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These include the determination of appropriate discount rate, estimating future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. For further details refer Note 30.

Fair value measurement of financial instruments and guarantees

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 36 for further disclosures.

Depreciation on Property, Plant and Equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company’s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

Decommissioning Liability

Decommissioning Liability has been recognized for items of property plant and equipment built or installed on specified leasehold land the terms of which said leases include decommissioning of such assets on expiry of the lease prior to handing over to the less or. The decommissioning costs as at the end of the lease period have been estimated based on current costs by the Company’s own technical experts and have been escalated to the end of the leasehold period using suitable inflation factors. The said escalated cost as at the end of the lease period is now discounted to the present value of such liability by applying Company’s weighted average cost of capital.

Impairment of Investment

Based on indication that the carrying value of investment in a step down subsidiary may be lower than the fair value, an impairment assessment has been carried out. Market related information and estimates are used to determine the recoverable value, of the investment. Key assumptions on which management has based its determination of recoverable amount include estimated long term growth rates, weighted average cost of capital and estimated operating margins. Cash flow projections take into account past experience and represent management’s best estimate about future developments.

Impact on defined benefit obligation

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(v) Risk Exposure

Since the employees gratuity fund is a defined benefit plan the liability to be provided will be subject to interest rate risk since the future valuation of benefit depends upon the yield of government bonds for matching maturities.

(vi) Defined Benefit Liability and Employer Contributions

Since the employees gratuity fund is a defined benefit plan maintained by Life Insurance Corporation of India the return is generated from a pool of assets invested by them and any deficit in the liability and return on plan assets is funded by the Company on a yearly basis.

(vii) In 2017-18, the Company expects to contribute Rs, 0.60 crores (31 March 2016: Rs, 2.71 crores) to gratuity

(b) Provident Fund

Provident Fund for certain eligible employees is administered by the Company through “Berger Paints Provident Fund (Covered)” as per the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The Rules for such a trust provide that in a provident fund set up by the employer, any shortfall in the rate of interest on member’s contributions as compared to the relevant rate of interest declared by the Government of India for this purpose will have to be met by the employer. Such provident fund would in effect be a defined benefit plan in accordance with the requirement of Ind AS 19 - Employee Benefits.

(c) Other Defined Benefit Plans

The amounts for “Other Defined Benefit Plans” are below the rounding off norm adopted by the Company (refer Note 43) and hence the disclosures as required under Ind AS 19 - “Employee Benefits” have not been given.

(II) Defined contribution plans

During the year, the Company has recognized the following amounts in the Statement of Profit and Loss for defined contribution plans:

Note 5. Employee Stock Option Plan Berger Paints India Limited Employee Stock Option Scheme, 2010

The Berger Paints India Limited - Employee Stock Option Plan [‘the Plan’] was approved at the Annual General Meeting of the Company held on 29th July, 2010. The objective of the plan is to: 1) Attract, retain and motivate Employees, 2) Create and share wealth with the Employees, 3) Recognize and reward employee performance with shares and 4) Encourage employees to align individual performance with the objective of the Company. The terms and conditions of the Plan is reproduced below:

a) “Vesting Date” means the date on and from which the Option vests with the Participant and thereby becomes exercisable.

b) “Exercise Date” means the date on which the Participant exercises his Vested Options and in case of partial Exercise shall mean each date on which the Participant exercises part of his Vested Options.

c) “Vesting Period” means the period during which the Vesting of the Option granted to the Participant in pursuance of the Plan takes place.

d) “Exercise Period” means a period of 3 years from the Vesting Date as defined above of the Plan within which the Vested Options can be exercised in pursuance of the Plan.

e) The Exercise Price of an Option shall be the face value of '' 2/- per Share. However, due to sub-division of Company’s share from F.V of '' 2/- to '' 1/- w.e.f from 9th January, 2015, the Compensation & Nomination & Remuneration Committee made fair and reasonable adjustments with respect to ESOP’s earlier approved and granted by the Compensation & Nomination & Remuneration Committee.

f) Cashless exercise of the Options are not permitted under the Plan. Participants to pay full Aggregate Exercise Price upon the Exercise of the Vested Options.

g) Subject to Participant’s continued employment as defined in Clause 14 of the Plan the Unvested Options shall vest with the Participant automatically in accordance with the following schedule : a) 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the first anniversary of the Grant Date; b) further 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the second anniversary of the Grant Date and c) balance 34% of the total Options granted, rounded up to the whole number such that the total number of Options vested shall add up to 100%, shall vest on the third anniversary of the Grant Date.

h) The Date of grant of options :1st August, 2010.

Berger Paints India Limited Employee Stock Option Plan 2016

The Berger Paints India Limited - Employee Stock Option Plan 2016 [‘the Plan’] was approved at the Annual General Meeting of the Company held on 3rd August, 2016. The objective of the plan is to:1) Attract, retain and motivate Employees, 2) Create and share wealth with the Employees, 3) Recognise and reward employee performance with shares and 4) Encourage employees to align individual performance with the objective of the Company. The terms and conditions of the Plan is reproduced below:

a) “Vesting Date” means the date on and from which the Option vests with the Participant and thereby becomes exercisable.

b) “Exercise Date” means the date on which the Participant exercises his Vested Options and in case of partial Exercise shall mean each date on which the Participant exercises part of his Vested Options.

c) “Vesting Period” means the period during which the Vesting of the Option granted to the Participant in pursuance of the Plan takes place.

d) “Exercise Period” means a period of 3 years from the Vesting Date as defined above of the Plan within which the Vested Options can be exercised in pursuance of the Plan.

e) The Exercise Price of an Option shall be the face value of '' 1/- per Share

f) Cashless exercise of the Options are not permitted under the Plan. Participants to pay full Aggregate Exercise Price upon the Exercise of the Vested Options.

g) Subject to Participant’s continued employment as defined in Clause 14 of the Plan the Unvested Options shall vest with the Participant automatically in accordance with the following schedule : a) 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the first anniversary of the Grant Date; b) further 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the second anniversary of the Grant Date and c) balance 34% of the total Options granted, rounded up to the whole number such that the total number of Options vested shall add up to 100%, shall vest on the third anniversary of the Grant Date.

Expected volatility during the expected term of the ESOP is based on historical volatility of the observed market prices of the Company’s publicly traded equity shares during a period equivalent to the expected term of the ESOP.

The fair values of our ESOP are based on the market value of our stock on the date of grant.

Note 6. Leases

Operating lease — Company as lessee

The Company’s leasing arrangement are in the nature of cancellable operating leases. The Company has taken various depots, offices etc. on Operating Leases. These leases have a life of between 1 year to 20 years (31 March 2016 - 1 year to 20 years; 1 April 2015-1 year to 20 years) which is renewable by mutual consent of concerned parties. No contingent rent is payable by the Company in respect of the above leases. Some of the lease agreements have price escalation clauses. Related lease rentals have been disclosed under the head “Rent” in Note 25 of Statement of Profit and Loss. There are no restrictions placed upon the Company by such leases.

Operating lease — Company as less or

The Company has given Colour bank (tinting machines) on operating lease to its dealers. The Company enters into 3-5 years cancellable lease agreements. However the corresponding lease rentals may be receivable for a shorter period or may be waived off. The minimum aggregate lease payments to be received in future is considered as '' Nil. Accordingly the disclosure of the minimum lease payments receivable at the balance sheet date is not made. Also refer note 4.

a) Tangible assets having carrying value of Rs, 232.95 crores (31 March, 2016 - Rs, 191.29 crores, 1 April, 2015 - Rs, 197.93 crores) have been mortgaged by deposit of title deeds in favour of BNP Paribas & Standard Chartered towards loan extended to M/s. Lusako Trading Limited, a Subsidiary of the Company.

b) The loan is utilised by the subsidiaries towards their business purposes. Also refer note 11 and 34.

Note 7. Disclosure in respect of Related Parties pursuant to Ind AS 24 List of Related Parties

I. Parent and Subsidiary Companies:

Name of related parties Nature of relationship

U K Paints (India) Private Limited Holding Company

Berger Jenson & Nicholson (Nepal) Private Limited Wholly Owned Subsidiary

Beepee Coatings Private Limited Wholly Owned Subsidiary

Berger Paints (Cyprus) Limited Wholly Owned Subsidiary

Lusako Trading Limited Wholly Owned Subsidiary

BJN Paints India Limited Wholly Owned Subsidiary of Beepee Coatings Private Limited

Berger Paints Overseas Limited Wholly Owned Subsidiary of Berger Paints (Cyprus) Limited

Bolix S.A. Wholly Owned Subsidiary of Lusako Trading Limited

BUILD-TRADE BIS sp. z o.o Wholly Owned Subsidiary of Bolix S.A.

Bolix UKRAINA sp.z o.o Wholly Owned Subsidiary of Bolix S.A.

Soltherm External Insulations Limited Wholly Owned Subsidiary of Bolix S.A.

Soltherm Insolations Thermique Exterieure (w.e.f July, 2016) Wholly Owned Subsidiary of Bolix S.A.

II. Other related parties with whom transactions have taken place during the year:

a) Key Managerial Personnel

Name of related parties Nature of relationship

Mr. K. S. Dhingra Director

Mr. G. S. Dhingra Director

Mr. Kanwardip Singh Dhingra Whole time director and relative of Mr. G. S. Dhingra

Mrs. Rishma Kaur Whole time director and relative of Mr K. S. Dhingra

Mr. Abhijit Roy Managing Director & CEO

Mr. Srijit Dasgupta Director-Finance & Chief Financial Officer

Mr. Aniruddha Sen Senior Vice President & Company Secretary

Mr. Kamal Ranjan Das Independent Director

Mr. Naresh Gujral Independent Director

Mr. Dhirendra Swarup Independent Director

Mr. Gopal Krishna Pillai Independent Director

b) Others

Name of related parties Nature of relationship

Berger Becker Coatings Private Limited Joint Venture of the Company

Berger Nippon Paint Automotive Coatings Private Limited (Formerly known Joint Venture of the Company as BNB Coatings India Private Limted/BNB Coatings India Limited)

Jenson & Nicholson (Asia) Limited Fellow Subsidiary

Berger Paints (Bangladesh) Limited Fellow Subsidiary

Citland Commercial Credits Limited Fellow Subsidiary

Wang Investment Finance Private Limited Fellow Subsidiary

Berger Paints Provident Fund (Covered) Post-employment benefit plan of the Company

Berger Paints Officers (Non-Management Category) Superannuation Fund Post-employment benefit plan of the Company

Berger Paints Management Staff Superannuation Fund Post-employment benefit plan of the Company

Seaward Packaging Private Limited Entity controlled by Key Managerial Personnel

Flex Properties Private Limited Entity controlled by Key Managerial Personnel

Wazir Estates Private Limited Entity controlled by Key Managerial Personnel

Kay Dee Farms Private Limited Entity controlled by Key Managerial Personnel

Malibu Estate Private Limited Entity controlled by Key Managerial Personnel

Bigg Investment & Finance Private Limited Entity controlled by Key Managerial Personnel

Mrs. Meeta Dhingra Spouse of Mr. K. S. Dhingra

Mrs. Vinu Dhingra Spouse of Mr. G. S. Dhingra

Mrs. Jessima Kumar Daughter of Mr. K. S. Dhingra

Ms. Dipti Dhingra Daughter of Mr. K. S. Dhingra

Mrs. Sunaina Kohli Daughter of Mr. G. S. Dhingra

Mrs. Anshna Sawhney Daughter of Mr. G. S. Dhingra

Note 8. Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise borrowings and trade payables. The main purpose of these financial liabilities is to finance the Company’s working capital requirements. The Company has various financial assets such as trade receivables, loans, investments, short-term deposits and cash & cash equivalents, which arise directly from its operations. The Company enters into derivative transactions by way of forward exchange contracts to hedge its payables.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Board of Directors oversees the management of these risks. The Company’s Board of Directors is supported by the Business Process and Risk Management Committee (BPRMC) that advises on financial risks and the appropriate financial risk governance framework for the Company. The BPRMC provides assurance to the Company’s Board of Directors that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by personnel that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agrees policies for managing each of these risks, which are summarized below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk , liquidity risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and financial derivative. The sensitivity analysis in the following sections relate to the position as at 31 March 2017 and 31 March 2016.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant at 31 March 2017. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations.

The following assumptions have been made in calculating the sensitivity analysis:

- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2017 and 31 March 2016.

- The sensitivity of equity is calculated as at 31 March 2017 for the effects of the assumed changes of the underlying risk.

Interest rate risk

The Company has incurred short term debt to finance its working capital, which exposes it to interest rate risk. Borrowings issued at variable rates expose the Company to interest rate risk. Borrowing issued at fixed rates expose the Company to fair value interest rate risk. The Company’s interest rate risk management policy includes achieving the lowest possible cost of debt financing, while managing volatility of interest rates, applying a prudent mix of fixed and floating debt through evaluation of various bank loans and money market instruments.

Some of the Company’s borrowings are index linked, that is their cost is linked to changes in the London inter-bank offer rate (LIBOR)

Although the Company has significant variable rate interest bearing liabilities at March 31, 2017, there would not be any material impact on pre-tax profit of the Company on account of any anticipated fluctuations in interest.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in exchange rates of any currency. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities by way of direct imports or financing of imports through foreign currency instruments.

The Company proactively hedged its currency exposures in case of a significant movement in exchange rates for imports and in case the hedged cost of foreign currency instrument is lower than the domestic cost of borrowing in case of short term import financing.

At 31 March 2017, the Company hedged 58% (31 March 2016: 9%, 1 April 2015: 59%), for 6 months, of its expected foreign currency payables. This foreign currency risk on payables is hedged by using foreign currency forward contracts.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD/Euro exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The impact on the Company’s pre-tax equity is due to changes in the fair value of forward exchange contracts designated as cash flow hedges. The Company’s exposure to foreign currency changes for all other currencies is not material.

Commodity price risk

The Company doesn’t enter into any long term contract with its suppliers for hedging its commodity price risk.

Equity price risk

The Company does not have any investments in listed securities or in Equity Mutual Funds and thereby is not exposed to any Equity price risk.

Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, and other financial instruments.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored by BPRMC and corrective actions taken.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Company’s Finance Committee. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

The Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2017 and 31 March 2016 is the carrying amounts as illustrated in Note 11 except for financial guarantees and financial derivative instruments. The Company’s maximum exposure relating to financial guarantees and financial derivative instruments is noted in Note 37 and the liquidity table below.

Liquidity risk

The Company monitors its risk of shortage of funds using a liquidity planning tool.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and buyers’ credit facilities. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2017 and 31 March 2016.

Note 9. First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2017, are the first the Company has prepared in accordance with Ind AS.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2015, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016.

Exemptions and exceptions applied

Ind AS 101 allows first-time adopters certain exemptions and mandatory exceptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions and exceptions:

1 The Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value as on the date of transition. The written down value as per the Previous GAAP as on April 1, 2015 has been considered as the Gross Block under Ind AS for respective classes of assets in accordance with Ind AS 101- First-time adoption of Indian Accounting Standards.

In addition, decommissioning liability measured in accordance with Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets at the date of transition has been included in the above deemed cost as per Ind AS 101- First-time adoption of Indian Accounting Standards.

2 The Company has elected to measure all of its investment in subsidiaries and joint ventures at their previous GAAP carrying value in accordance with Ind AS 101- First-time adoption of Indian Accounting Standards.

3 The estimates at 1 April 2015 and at 31 March 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from FVTPL - Mutual Funds and Impairment of financial assets based on expected credit loss model where application of Indian GAAP did not require estimation.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2015 (i.e. the date of transition to Ind-AS) and as of 31 March 2016.

4 Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS in accordance with Ind AS 101- First-time adoption of Indian Accounting Standards.

Above includes allowable expenditure under section 35(2AB) of the Income Tax Act Capital expenditure Rs,1.10 crores ( 31 March 2016 Rs,0.45 crores)

Revenue expenditure Rs,8.72 crores ( 31 March 2016 Rs,7.20 crores)

The Company has a research & development unit situated in Howrah, Kolkata which focuses on research on new and existing paint products, reformulation for cost optimization, environment friendly products etc.

Note 10. Segment Information

The Company is engaged in the business of manufacturing and selling of paints. Based on the nature of products, production process , regulatory environment, customers and distribution methods there are no reportable segment(s) other than “Paints”.

Note 11. All figures are in Rupees Crores. Figures marked with (*) are below the rounding off norm adopted by the Company. Note 44. Details of Specified Bank Notes (SBN) held and transacted during the period November 8,2016 to December 30, 2016


Mar 31, 2014

1. CONTINGENT LIABILITIES

As at As at 31st March, 2014 31st March,2013 Rs. Crores Rs. Crores

a) Claims against the Company not acknowledged as debts :

The Sales Tax, Excise & Service Tax, and Income Tax have made certain claims totalling Rs. 29 (31st March 2013: Rs. 28), Rs. 18 (31st March 2013: Rs. 29), Rs. 18 (31st March 2013: Rs. 9) respectively in respect of earlier years. The Company has been advised by its lawyers that none of the claims are tenable and is therefore contesting the same. The future cash flows on account of the above cannot be determined unless the judgement/decisions are received from the ultimate judicial forums.

b) Corporate guarantees issued by the Company to certain banks for loans taken by some of its subsidiaries and amount outstanding as at 31st March 253.16 242.90

c) Some of the fixed assets of the Company have been mortgaged by deposit of title deeds in favour of Standard Chartered Bank towards loan extended to its subsidiary, M/s Lusako Trading Limited.

2. SEGMENT INFORMATION

The Company has only one business segment, namely Paints with almost the entire sales being made in the domestic market.

3. LEASES

The Company''s leasing arrangements are in the nature of cancellable operating leases. These are usually renewed periodically by mutual consent. Related lease rentals have been disclosed under the head Rent in Note 28 of the Statement of profit and Loss.

4. PREVIOUS YEAR COMPARATIVES

Previous year''s figures have been regrouped and reclassified to confirm to current year''s classifcation wherever necessary.

5. All figures are in Rupees Crores. Figures marked with asterisks (*) are below the rounding of norm adopted by the Company.


Mar 31, 2013

1. CONTINGENT LIABILITIES As at As at 31st March, 2013 31st March, 2012 Rs. Crores Rs. Crores

a) Claims against the Company not acknowledged as debts :

The Sales Tax, Excise & Service Tax, Income Tax and Provident Fund Authorities have made certain claims totalling Rs. 28 (2011-12: Rs. 33), Rs. 29 (2011-12: Rs. 34), Rs. 9 (2011-12: Rs. 15) and Rs. Nil (2011-12: Rs. 1) respectively in respect of earlier years. The Company has been advised by its lawyers that none of the claims are tenable and is therefore contesting the same. The future cash flows on account of the above cannot be determined unless the judgement/decisions are received from the ultimate judicial forums.

b) Corporate guarantees issued by the Company to certain banks for loans taken by some of its subsidiaries and amount outstanding as at 31st March 242.90 206.90

c) Some of the fixed assets of the Company have been mortgaged by deposit of title deeds in favour of Standard Chartered Bank towards loan extended to its subsidiary, M/s Lusako Trading Limited.

2. SEGMENT INFORMATION

The Company has only one business segment, namely Paints with almost the entire sales being made in the domestic market.

3. LEASES

The Company''s leasing arrangement are in the nature of operating leases which are not non cancellable. These are usually renewed periodi- cally by mutual consent. The rentals payable against these arrangements appear under the head Rent in Note 28 to the Statement of Profit and Loss - Rs. Nil (2011-12: Rs. Nil).

4. PREVIOUS YEAR COMPARATIVES

Previous year''s figures have been regrouped and reclassified to conform to current year''s classification.

5. All figures are in Rupees Crores. Figures marked with asterisks (*) are below the rounding off norm adopted by the Company.


Mar 31, 2012

A) Terms / rights attached to equity shares :

Share Capital comprises only equity shares of Rs 2/- each only.

The equity shares rank pari passu in all respects including right to dividend, issue of new shares and voting rights.

b) Shares reserved for issue under options Refer Note 45 for details.

* Refer Note 47

a. Cash Credit are secured by hypothecation of stock-in-trade and book debts and repayable on demand.

1. CONTINGENT LIABILITIES As at As at 31st March, 2012 31st March, 2011 Rs Mn Rs Mn

a) Claims against the Company not acknowledged as debts :

The Sales Tax, Excise & Service Tax, Income Tax and Provident Fund Authorities have made certain claims totalling Rs 333 (2010-11: Rs 263), Rs 344 (2010-11: Rs 394), Rs 151 (2010-11: Rs 30) and Rs 1 (2010-11: Rs 1) respectively in respect of earlier years. The Company has been advised by its lawyers that none of the claims are tenable and is therefore contesting the same. The future cash flows on account of the above cannot be determined unless the judgement/decisions are received from the ultimate judicial forums.

b) Corporate guarantees issued by the Company to certain banks for loans taken by some of its subsidiaries and amount outstanding as at 31st March 2,069 1,759

c) Some of the fixed assets of the Company have been mortgaged by deposit of title deeds in favour of Standard Chartered Bank towards loan extended to its subsidiary, M/s Lusako Trading Limited.

Notes : a) The disclosures included above are limited to the extent provided by the actuary.

b) The amounts for "Other Defined Benefit Plans" are below the rounding off norm adopted by the Company (refer note 47) and hence the disclosures as required under AS - 15 "Employee Benefits" have not been given.

ii) During the year, the Company has recognised the following amounts in the Statement of Profit and Loss for defined contribution plans :

- Provident and Family Pension Fund (applicable for certain eligible employees whose provident fund accounts are maintained with the Regional Provident Fund Commissioner - Rs 9 (2010-11: Rs 9)

- Superannuation Fund - Rs 20 (2010-11: Rs 19).

iii) Provident Fund for certain eligible employees is administered by the Company through the Trust "Berger Paints Provident Fund (Covered)" as per the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The Rules for such a Trust provide that in a provident fund set up by the employer, being exempt under Section 17(1) of the said Act, any shortfall in the rate of interest on contributions as compared to the rate approved by the government for the Employees' Provident Fund administered by the Regional Provident Fund Commissioner is to be met by the employer. Such a provident fund would in effect be a defined benefit plan in accordance with the requirement of AS 15, Employee Benefits (Revised 2005).

The actuarial valuation conducted (as per the Guidance Note issued by the Actuarial Society of India during the year) indicate that there is no shortfall as on 31st March, 2012 based on the following assumptions:

2. SEGMENT INFORMATION

The Company has only one business segment, namely Paints with almost the entire sales being made in the domestic market.

3. LEASES

The Company's leasing arrangement are in the nature of operating leases which are not non cancellable. These are usually renewed periodically by mutual consent. The rentals payable against these arrangements appear under the head Rent in Note 28 to the Statement of Profit and Loss - Rs 0 (2010-11: Rs 0)*.

* Refer Note 47

4. PREVIOUS YEAR COMPARATIVES

The financial statements for the year 31st March, 2011 had been prepared as per pre-revised Schedule VI to the Companies Act, 1956 applicable for the year. The financial statements for year ended 31st March, 2012, however, have been prepared as per Revised Schedule VI notified under the Companies Act, 1956 applicable for financial statements prepared for the financial year commencing April 1, 2011. Accordingly, the previous year's figures have been regrouped and reclassified to confirm to current year's classification.

5. All figures are in Rs Million. Figures marked with asterisks (*) are below the rounding off norm adopted by the Company.


Mar 31, 2011

(i) to Profit and Loss Account) of employment with the Company.

(ii) The Company’s leasing arrangements are in the nature of operating leases which are not non cancellable. These are usually renewed periodically by mutual consent. The rentals payable against these arrangements appear under the head Rent in schedule 17 to the Profit and Loss Account - Rs 218 (2009-10: Rs 123).

(iii) All figures are in Rupees thousands.

(iv) Previous years figures have been regrouped wherever necessary.


Mar 31, 2010

(i) (a) Gross depreciation for the year amounts to Rs. 265,243 (2008-09 : Rs. 205,400) from which has been deducted Rs. 1,173 (2008-09 : Rs. 1,417) being extra depreciation for the year arising on revaluation of fixed assets withdrawn from Revaluation Reserve.

(b) Net gain on exchange fluctuation recognised in the Profit and Loss Account amounts to Rs. 12,741 (2008-09 Net Loss : Rs. 28,889).

(c) Calculation of Earnings per Share of Rs. 3.65 (2008-09 : Rs. 2.78) (Face Value Rs. 2) :

The numerator (net profit for the year) and denominator (number of equity shares) are Rs. 1,201,378 (2008-09 : Rs. 887,554) and 329,156,300 (2008-09 : 318,872,464) shares respectively.

(ii) The Company has only one business segment, namely Paints with almost the entire sales being made in the domestic market.

(iii) The Companys leasing arrangements are in the nature of operating leases which are not non-cancellable. These are usually renewed periodically by mutual consent. The rentals payable against these arrangements appear under the head Rent in Schedule 17 to the Profit and Loss Account - Rs. 123 (2008-09 : Rs. 123). (xv) All figures are in Rupees thousands.

(iv) Previous years figures have been regrouped wherever necessary.

2) The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard - 3 on Cash Flow Statement issued by the Institute of Chartered Accountants of India.

3) Previous years figures have been regrouped, wherever necessary. This is the Cash Flow Statement referred to in our report of even date.

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