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A Oneindia Venture

Nifty 25,966.40 +0.58%

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Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Shalimar Paints Ltd.

Mar 31, 2025

3.20 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed,
for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision is presented in the Standalone Statement of Profit and Loss, net of any
reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current
best estimate.

3.21 Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration
or is due from the customer. If a customer pays consideration before the Company transfers goods or services to the customer,
a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are
recognised as revenue when the Company performs under the contract.

3.22 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is
not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured
reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements.
Contingent assets are only disclosed when it is probable that the economic benefits will flow to the entity.

3.23 Recent pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2025, MCA has notified Ind AS
- 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. 1 April 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its standalone financial statements.

3.24 Standards notified but not yet effective

MCA vide notification dated 7 May 2025 notified the Companies (Indian Accounting Standards) Amendment Rules 2025,
which amended Ind AS 21, The Effects of Changes in Foreign Exchange Rates, with respect to lack of exchangeability. The
same shall be applicable for reporting periods beginning on or after 1 April 2025.

4. Significant management judgement in applying accounting policies and estimation uncertainty

continuously evaluated and are based on managementâs experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. 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. In
particular, the Company has identified the following areas where significant judgements, estimates and assumptions are
required. Further information on each of these areas and how they impact the various accounting policies are described below
and also in the relevant notes to the standalone financial statements. Changes in estimates are accounted for prospectively.

i. Judgements

In the process of applying the Companyâs accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the standalone financial statements:

a. Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company,
including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only when
one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum,
of contingencies inherently involves the exercise of significant judgments and the use of estimates regarding the
outcome of future events.

b. Provisions

At each balance sheet date basis the management judgement, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future
outcome may be different from this judgement.

c. Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future
taxable income will be available against which the deductible temporary differences and tax loss carry-forward can
be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or
uncertainties in various tax jurisdictions.

ii. 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 standalone financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market change or circumstances arising beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

a. Useful lives of tangible/intangible assets

The Company reviews its estimate of the useful lives of tangible/intangible assets at each reporting date, based on
the expected utility of the assets.

b. Defined benefit obligation

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate, future salary increases,
mortality rates and future pension increases. In view of 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.

c. Share based payment

Estimating fair value for share-based payment requires determination of the most appropriate valuation model. The
estimate also requires determination of the most appropriate inputs to the valuation model including the expected life
of the option, volatility and dividend yield and making assumptions about them.

d. Leases - determination of the appropriate discount rate to measure lease liabilities

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate to measure lease liabilities. The incremental borrowing rate is the rate of interest that the Company would have
to pay to borrow over similar terms which requires estimations when no observable rates are available.

e. inventories

The Company estimates the net realisable values of inventories, taking into account the most reliable evidence
available at each reporting date. The future realisation of these inventories may be affected by future technology or
other market-driven changes that may reduce future selling prices. Further, the management identifies old, slow-
moving, damaged, and expired inventory to ascertain whether an allowance is required to be made in the financial
statements for any obsolete and slow-moving items.

f. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Standalone 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. Judgements 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.

g. Allowance for expected credit loss

The Company applies Expected Credit Losses (âECLâ) model for measurement and recognition of loss allowance on
trade receivables. In accordance with Ind AS 109 - Financial Instruments, the Company applies ECL model for
measurement and recognition of impairment loss on the trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are within the scope of Ind AS 115 âRevenue from Contracts
with Customersâ.

For this purpose, the Company follows âsimplified approachâ for recognition of impairment loss allowance on the trade
receivable balances. The application of simplified approach does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition. As a practical expedient, the Company uses a provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates
over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date,
the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

Notes:

(i) For trade receivables from related parties, refer note 46.

(ii) Trade receivables are non interest bearing and credit period generally falls in the range of 0 to 120 days.

(iii) Refer note 19 and note 23 for information on trade receivables pledged as security by the Company.

(iv) There are no unbilled receivables, hence the same is not disclosed in the ageing schedule.

(v) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other
person. The amount receivable from companies, where any director of the Company is a director, is Rs. 1.46 crore (31 March
2024: Rs. 2.28 crore).

(vi) Trade receivables are initially recognised at transaction price as they do not contain a significant financing component. This
implies that the effective interest rate for these receivables is zero. Subsequently, the Company applies lifetime expected
credit loss model for measurement of trade receivables.

Transferred trade receivables

The carrying amounts of the trade receivables include receivables which are subject to a factoring arrangement by the Company
where it has retained significant risks and rewards of receivables. Under this arrangement, the Company has sold trade receivables
to the financial institution in exchange for cash proceeds. The Company therefore continues to recognise the transferred assets in
their entirety in its balance sheet. Consequently, the proceeds received from transfer are recorded as loans from financial institutions
and classified under short-term borrowings. The Company considers that the receivables continues to be held as part of âheld to
collect business modelâ and hence continues measuring them at amortised cost. The carrying amount of the associated liabilities
as at the reporting date amounts to Rs. 14.86 crore (31 March 2024: Nil).

i. Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utiilised in accordance with the provisions of
the Act.

ii. Share options outstanding account

The above reserve relates to the share options granted by the Company to its employees under its employee share option plan.
Further information about share-based payments to employees is set out in note 47

iii. General reserve

The above reserve relates to annual transfer of net income at a specified percentage in accordance with the Companies (Transfer
of Profits to Reserve) Rules, 1975. Consequent to introduction of the Companies Act, 2013, there is no such requirement to
mandatorily transfer a specified percentage of the net profit to general reserve.

iv. Retained earnings

Retained earnings are created from the profit/ loss of the Company, as adjusted for distributions to owners, transfers to other
reserves, etc.

v. Revaluation reserve

Revaluation reserve is on account of revaluation of land at various locations and other assets at the time of Ind AS transition.

vi. Capital reserve

The capital reserve has been created through transfer of the equity portion of the optionally convertible debentures, on their
repayment. It is not available for distribution to shareholders as dividend.

vii. Money received against share warrants

Money received against share warrants is the amount received by the Company which is converted into shares at a specified rate.
These warrants were carrying a right to subscribe one equity share per warrant. The price of the warrants were determined in
accordance with the ICDR Regulations. As at the reporting date, money has been received against these warrants.

viii. Equity portion of optionally convertible debentures and capital reserve

During the year ended 31 March 2022, as per debenture subscription agreement dated 18 January 2022, the Company had issued
30,55,556 unlisted, unsecured optionally convertible debentures of the face value of Rs. 180 each aggregating Rs. 55.00 crore by
way of preferential allotment on private placement basis. The said debentures were carrying interest @ 9% p.a. (payable quarterly)
and were optionally convertible into 3,055,556 equity shares at the discretion of debenture holder if the closing listed price of equity
shares breaches the issue price of debenture on or before 23 August 2023. During the previous year, the equity portion of the
debentures, earlier recognised, has been transferred to capital reserve on repayment on 22 August 2023.

Nature of security:

(a) IDFC Term loan

Term loan of Rs. 7.47 crore - repaid during the year

(a) First pari passu charge on movable fixed assets of the Company

(b) Exclusive charge on below immovable propertiesÂ¬
- Commercial office in sector-32 Gurgaon

- Commercial office in Mumbai

(b) IDFC Term loan

Term loan of Rs. 17.19 crore (31 March 2024: Rs. 17.21 crore) availed from IDFC First Bank is secured by:

1. Exclusive charge on commercial plot in Gurugram valued at Rs 51 crore,

2. First pari - paasu charge on assets created out of this term loan;

3. Subservient charge on current assets and movable fixed assets;

4. DSRA equivalent to 2 quarterâs principal and interest payment; and

5. Corporate guarantee of Shalimar Adhunik Nirman Limited.

Working Capital Term loan (WCTL) of Rs. 1.19 crore (31 March 2024: Rs. 3.65 crore) availed from State Bank of India is
secured by:

Primary - extension of Hypothecation 2nd charge on entire current assets of the Company on pari-passu basis with other banks
under consortium banking arrangements.

Collateral

Extension of second charge on fixed assets of the company on pari- passu basis with other consortium members (by way of EM on
Land & Bldg. and hypothecation charge on other fixed assets and plant and machinery situated at the Companyâs factory at Gat
No.121 (1,850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt), 133 (20,500 sq mt), 134 (8,000 sq mt) & 141 (7,550
sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District Nashik, in the Registration District and Sub District of Igatpuri,
standing in the name of the Company. (Total Land area: 62,200 sq mt).

Extension of EM pari passu 2nd charge with consortium members on the entire fixed assets and Land & Building at Survey
Nos.1AIB (3.49 acres), 3/2 (3.32 acres), 3/1 (1.50 acres), 15/1A(0.28 acre), 1511B (0.16 acre), 15/1C (0.14 acre), No.19, Chinnapuliyur
Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu Chinnapuliyur, Thiruvallur, Tamil Nadu, 600040, (Semi Urban),
Admeasuring Total Area : 8.89 acres,

Extension of pari passu 2nd charge with consortium on the Plant & Machinery of the Company at Howrah Factory.

Extension of Mortgage and Pari-passu 2nd charge with the consortium members (1 st charge is with Religare Finvest) on the entire
fixed assets at A1 & A2, UPSIDC Industrial Area, District Bulandsahar, Sikandarabad Land Admeasuring : 41,242 sq mt

(d) UBI

Term loan of Rs. 0.45 crore - repaid during the year

Hypothecation by way of first charge in favour of the bank:-

All the goods, stocks, raw materials, plant, machinery, fixtures, implements, fittings and other installations, furniture, vehicles,
computers and all other articles and things both present and future, whether installed or not, whether lying loose or in cases, at site
or in transit or which may at any time hereafter during the continuance of this security be installed or lying loose or in cases or being
in or upon or about the borrowerâs factory premises, warehouses and godowns or wherever else the same may be or be held by
any party anywhere to the order and disposition of the Borrower or in the course of transit to the Borrower (including those goods,
machinery, implements etc. purchased out of the term loan sanctioned by the bank covered under this agreement) described in
general terms hereto.

(e) UBI GECL 2

Term loan of Rs. 1.09 crore (31 March 2024: Rs. 1.83 crore) availed from Union Bank of India and Union Bank of India
(GECL) is secured by:

(i) 2nd charge on the immovable properties of the Company situated at A1, A2 UPSIDC Industrial area, Sikandrabad, Bulandsahar,
UP.

(ii) 2nd charge on entire movable fixed assets of the Company situated at A1, A2 UPSIDC Industrial area, Sikandrabad, Bulandsahar,
UP.

(f) PNB GECL 2

Working Capital Term loan (WCTL) of Rs. 0.57 crore (31 March 2024: Rs. 1.13 crore) availed from Punjab National Bank is
secured by:

Primary - Hypothecation 2nd charge on the security of raw materials, SIP, finished goods stores, spares, receivables and all other
current assets. Our charge would rank pari-passu first charge with other members of the consortium.

Collateral

(i) Pari passu 2nd hypothecation charge on factory land and building of the Company with other consortium members, situated at

the Companyâs factory at Gat No.121 (1850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt), 133 (20,500 sq

mt), 134 (8,000 sq mt) & 141 (7,550 sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District Nashik, in the Registration
District and Sub District of Igatpuri, standing in the name of the Company. (total land area: 62,200 sq mt)

(ii) Pari passu 2nd charge with other consortium member banks over plant & machinery at the Nashik Plant.

(iii) Pari passu 2nd hypothecation charge with consortium on the plant and machinery of the Company at Howrah factory.

(iv) Pari passu second hypothecation charge with consortium members on the entire fixed assets and land and building at Survey
Nos.1 A1B (3.49 acres), 3/2 (3.32 acres), 3/1(1.50 acres), 15/1A(0.28 acre), 15/1B (0.16 acre), 15/1C (0.14 acre), No.19,
Chinnapuliyur Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu, Chinnapuliyur, Thiruvallur, Tamil Nadu, 600040,
(Semi Urban), admeasuring total area: 8.89 acres.

(v) Pari passu second hypothecation charge with the consortium members on the entire fixed assets at A1 & A2, UPSIDC Industrial
Area, District Bulandsahar, Sikandrabad Admeasuring: 41,242 sq mt land.

These cash credit and working capital demand loan facilities are secured by:

(1) Primary security

Hypothecation charge on entire current assets of the Company on pari-passu basis with other banks under consortium banking

arrangements

(2) Collateral security:

(i) Pari passu first hypothecation charge on factory land and building of the Company with other consortium members,
situated at the Companyâs factory at Gat No.121 (1,850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt),
133 (20,500 sq mt), 134 (8,000 sq mt) & 141 (7,550 sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District
Nashik, in the Registration District and Sub District of Igatpuri, standing in the name of the Company. (Total Land area:
62,200 sq.mt)

(ii) Pari passu first charge with other consortium member banks over plant & machinery at the Nashik Plant.

(iii) Pari passu first hypothecation charge with consortium on the plant and machinery of the Company at Howrah factory.

(iv) Pari passu second hypothecation charge with consortium members on the entire fixed assets and land and building at
Survey Nos.1A1B (3.49 acres), 3/2 (3.32 acres), 3/1(1.50 acres), 15/1A(0.28 acre), 15/1B (0.16 acre), 15/1C (0.14 acre),
No.19, Chinnapuliyur Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu, Chinnapuliyur, Thiruvallur, Tamil
Nadu, 600040, (Semi Urban), Admeasuring Total Area: 8.89 acres.

(v) Pari passu second hypothecation charge with the consortium members on the entire fixed assets at A1 & A2, UPSIDC
Industrial Area, District Bulandsahar, Sikandrabad admeasuring: 41,242 sq mt land.

Factored receivables are secured by:

Corporate guarantee given by Holding Company.

Bill discounting:

The Company has availed letter of credit (âLCsâ) facility from State Bank of India Limited and Punjab National Bank Limited for

payment to its vendors, against which the monies were yet to be paid by the banks as at 31 March 2025 and 31 March 2024.

Amount of facilities availed as at 31 March 2025 and 31 March 2024 are:

41 Gratuity and others post employement benefit plans :

a) Defined contribution plans

Contribution to defined contribution plans, recognised as expense for the year is as under:Employerâs contribution to provident and
other funds Rs. 3.47 crore (31 March 2024: Rs. 2.95 crore) (refer note 34)

b) Defined benefit plan (Gratuity)

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit
method made at the end of each year. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who
has completed five years or more of service gets a gratuity on retirement/leaving the organisation at 15 days salary (last drawn
salary) for each completed year of service. The scheme partially funded. Actuarial gains or losses are recognised in other
comprehensive income.

c) Other benefits (Compensated absences)

The employees of the Company are entitled to leaves as per the leave policy of the Company. Compensated absences which are
not expected to occur within twelve months after the end of the period in which the employee renders the related service are
recognised based on actuarial valuation. The expense related to compensated absences are recognised in standalone statement
of profit and loss as employee benefits expense. As the Company does not have an unconditional right to defer settlement for any
of the leave obligations, it has disclosed the amount as current liabilities.

The following tables summarises the components of net benefit expense recognised in the Statement of Profit and Loss and the
funded status and amounts recognised in the balance sheet:

IX Description of risk exposures:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over

time. Thus, the Company is exposed to various risks as follows -

A) Salary Escalation Risk- The present value of the defined benefit plans calculated with the assumptions of salary increase rate
of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase
in salary used to determined the present value of obligation will have a bearing on the planâs liability.

B) Interest Rate Risk - The plan exposes the Company to the risk of decrease in interest rates. A decrease in interest rate will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the
liability.

C) Liquidity Risk - This is the risk that the Company is not able to meet the short term benefit payout. This may arise due to nonÂ¬
availability of enough cash and cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

D) Demographic Risk - The Company has used certain mortality and attrition assumptions in valuation of the liability. The company
is exposed to the risk of actual experience turning out to be worse compared to the assumptions.

E) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to Government Bonds Yield. If plan liability is funded and return on plan assets is below this rate, it will create a plan
deficit.

42 Lease related disclosures as lessee

The Companyâs lease asset class primarily consists of leases for land, corporate office, warehouses and equipments. With the
exception of short-term leases, leases of low-value and cancellable long-term leases underlying assets, each lease is reflected on
the balance sheet as a right of use asset and a lease liability.

Lease liabilities are measured at the present value of the remaining lease payments, discounted using the weighted average
borrowing rate ranging 10.70-12.16% (31 March 2024: 9.73%-12.16%).

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another
party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by
incurring a substantive termination fee. Some leases contain an option to extend the lease for a further term. The Company is
prohibited from selling or pledging the underlying leased assets as security against the Companyâs other debts and liabilities.

This note presents information about the Companyâs exposure to each of the above risks, the Companyâs objectives, policies and
processes for measuring and managing risk.

A Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans
and advances, cash and cash equivalents and deposits with banks.

Trade receivables

The Company primarily sells paints and coatings to customers operating in India and outside India. The Companyâs exposure
to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which
customers operate. Considering the nature of trade receivables, and entityâs history of credit with those receivables, entity has
rebutted the presumption of having significant increases in credit risk since initial recognition for financial assets which are
more than 30 days past due.

Cash and cash equivalents and deposits with banks

Cash and cash equivalents of the Company are held with banks which have high external rating. The Company considers that
its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

Loans to employees and security deposits

The Company provides loans to its employees and furnish security deposit to various parties for electricity, communication,
etc. The Company considers that its loans have low credit risk or negligible risk of default as the parties are well established
entities and have strong capacity to meet the obligations.

Investments

The Company has invested in unquoted equity instruments and preference shares of its subsidiaries, and other company. The
management actively monitors the operation of subsidiaries and other company which affect investments. The Company does
not expect the counterparty to fail in meeting its obligations other than those specifically considered as impairment allowance
as per the managementâs assessment.

j The Company has registered with Ministry of Corporate Affairs/ Registrar of Companies, all charges or satisfaction within the
statutory time period.

k The Company is compliant in respect of number of layers prescribed under Clause (87) of Section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

l The Company has not entered into any scheme of arrangement in the current and previous year.

m The Company has not advanced or provided loan to or invested funds in entity including foreign entity or to any other person with

the understanding that the intermediary shall(i) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (ultimate beneficiaries) or(ii) provide any guarantee, security or the like to or on
behalf of the ultimate beneficiaries.

n The Company has not received any funds from any person or entity including foreign entity with the understanding that the
company shall(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the funding party (ultimate beneficiaries) or(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

o In view of continued losses, the Company is not covered by Section 135 of the Companies Act, 2013 dealing with CSR activities.

p The Company has not undertaken any transaction which is not recorded in the books of accounts that has been surrendered or

disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961).

55 During the current year, the Company has incurred a net loss after tax of Rs. 80.11 crore and has accumulated losses amounts to
Rs. 482.48 crore as at 31 March 2025. Further, the Company has negative cash flow from operating activities amounting to Rs.
58.63 crore during current year. The above events cast a doubt in going concern, but considering the undrawn credit facilities from
the banks and the expected growth opportunities as per the future business plans and commitment from the Holding Company to
extend financial support to the Company for meeting the obligations expected to arise in the foreseeable future, the accompanying
standalone financial statements have been prepared on a going concern basis and the Company will be able to realize its assets
and discharge its liabilities as recorded in these financial statements, in the normal course of business.

56 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which
uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of
recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with
the date when such changes were made and ensuring that the audit trail cannot be disabled. Except for the matters mentioned
below, the Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit log)
facility and the same was enabled at the application level.

a) The Company used accounting software to maintain its books of account from 1 April 2024 to 31 August 2024, during which
the audit trail (edit log) feature was not enabled at the database level to log any direct data changes.

b) The Company used another accounting software to maintain its books of account from 3 September 2024 to 31 March 2025.
The database of this accounting software is managed by a third-party software provider. The âIndependent Service Auditorâs
Assurance Report on the Description of Controls, their Design and Operating Effectivenessâ (Type 2 report issued in accordance
with ISAE 3402, Assurance Reports on Controls at a Service Organization) does not provide any information regarding direct
changes made at the database level of the said software for the specified period.

57 Amounts below the rounding off norms adopted by the Company are presented as â0â.

58 Previous year figures have been regrouped/reclassified, wherever considered necessary in order to comply with financial reporting
requirements. The impact of such regrouping/reclassification is not material to these standalone financial statements.

The accompanying notes are an integral part of standalone financial statements.

As per our report of even date attached

For Walker Ohandiok & Co LLP For and on Behalf of the Board of Directors of

Chartered Accountants Shalimar Paints Limited

Firmâs Registration No.: 001076N/N500013

Rakesh R. Agarwal Kuldip Raina O Venugopal

Partner Managing Director & CEO COO & Whole-time Director

Membership No.: 109632 DIN:- 10956069 DIN: 08686707

Sachin Naik Snehal Saboo

Chief Financial Officer Company Secretary

Mem. No:- ACS A49811

Place : Mumbai Place : Mumbai

Date : 26 May 2025 Date : 26 May 2025

Mar 31, 2024

3.20 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Standalone Statement of Profit and Loss, net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

3.21 Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration or is due from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

3.22 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements. Contingent assets are only disclosed when it is probable that the economic benefits will flow to the entity.

4. Material management judgement in applying accounting policies and estimation uncertainty

The preparation of the Companyâs standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the date of the standalone financial statements. Estimates and assumptions are continuously evaluated and are based on managementâs experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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.

In particular, the Company has identified the following areas where material judgements, estimates and assumptions are required. Further information on each of these areas and how they impact the various accounting policies are described below and also in the relevant notes to the standalone financial statements. Changes in estimates are accounted for prospectively.

i. Judgements

In the process of applying the Companyâs accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the standalone financial statements:

a. Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of material judgments and the use of estimates regarding the outcome of future events.

b. Provisions

At each balance sheet date basis the management judgement, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

c. Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forward can be utilised. In addition, material judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.

ii. 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 standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market change or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a. Useful lives of tangible/intangible assets

The Company reviews its estimate of the useful lives of tangible/intangible assets at each reporting date, based on the expected utility of the assets.

b. Defined benefit obligation

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. In view of 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.

c. Inventories

d. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Standalone 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. Judgements 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.

e. Allowance for expected credit loss

The Company applies Expected Credit Losses (âECLâ) model for measurement and recognition of loss allowance on trade receivables. In accordance with Ind AS 109 - Financial Instruments, the Company applies ECL model for measurement and recognition of impairment loss on the trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115 âRevenue from Contracts with Customersâ.

For this purpose, the Company follows âsimplified approachâ for recognition of impairment loss allowance on the trade receivable balances. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

f. Application of new and revised Indian Accounting Standard (Ind AS)

The Ministry of Corporate Affairs vide notification dated 31 March 2023 notified the Companies (Indian Accounting Standards) Amendment Rules, 2023, which amended certain accounting standards (see below), and are effective 1 April 2023:

â¢ Disclosure of accounting policies - amendments to Ind AS 1

â¢ Definition of accounting estimates - amendments to Ind AS 8

These amendments did not have any material impact on the Company. For the year ended 31 March 2024, MCA has not notified any new standards applicable to the Company.

45 Defined benefit plan and long term employment benefits

a) Defined contribution plans

Contribution to defined contribution plans, recognised as expense for the year is as under:Employerâs contribution to provident and other funds Rs. 2.95 crores (31 March 2023: Rs. 2.11 crores) (refer note 37)

b) Defined benefit plan (Gratuity)

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each year. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on retirement/leaving the organisation at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded. Actuarial gains or losses are recognised in other comprehensive income.

IX Description of risk exposures:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over

time. Thus, the Company is exposed to various risks as follows -

A) Salary Escalation Risk- The present value of the defined benefit plans calculated with the assumptions of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determined the present value of obligation will have a bearing on the planâs liability.

B) Interest Rate Risk - The plan exposes the Company to the risk of decrease in interest rates. A decrease in interest rate will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

C) Liquidity Risk - This is the risk that the Company is not able to meet the short term benefit payout. This may arise due to nonavailability of enough cash and cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

D) Demographic Risk - The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions.

E) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government Bonds Yield. If plan liability is funded and return on plan assets is below this rate, it will create a plan deficit. The plan asset investments is in fixed income securities of Life Insurance Corporation of India.

46 Lease related disclosures as lessee

The Companyâs lease asset class primarily consists of leases for land, corporate office and warehouses. With the exception of short-term leases, leases of low-value and cancellable long-term leases underlying assets, each lease is reflected on the balance sheet as a right of use asset and a lease liability.

Lease liabilities are measured at the present value of the remaining lease payments, discounted using the weighted average borrowing rate ranging 9.73-12.16% (31 March 2023: 10.70%-12.16%).

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security against the Companyâs other debts and liabilities.

B Valuation technique to determine fair values

Cash and cash equivalents, other bank balances, trade receivables, loans, other current financial assets, trade payables, current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

(i) The fair values of the long term borrowings, loans and other deferred payments are determined by using discounted cash flow method using the appropriate discount rate. The discount rate is determined using other similar instruments incorporating the risk associated.

(ii) The fair values of investments measured at FVTPL are determined based on observable market data other than quoted prices in active market.

iii) The carrying amount of financial assets and financial liabilities measured at amortised cost in the standalone financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

48 Financial risk management

The Companyâs principal financial liabilities comprise of borrowings, lease liabilities, trade payables and other payables. The Companyâs principal financial assets include trade and other receivables, investments and cash and bank balances that it derives directly from its operations.

The Company has exposure to the following risks arising from financial instruments:

- credit risk;

- liquidity risk; and

- market risk

This note presents information about the Companyâs exposure to each of the above risks, the Companyâs objectives, policies and processes for measuring and managing risk.

A Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans and advances, cash and cash equivalents and deposits with banks.

Trade receivables

The Company primarily sells paints and coatings to customers operating in India and outside India. The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate. Considering the nature of trade receivables, and entityâs history of credit with those receivables, entity has rebutted the presumption of having significant increases in credit risk since initial recognition for financial assets which are more than 30 days past due.

Cash and cash equivalents and deposits with banks

Cash and cash equivalents of the Company are held with banks which have high external rating. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

Loans to employees and securities deposits

The Company provides loans to its employees and furnish security deposit to various parties for electricity, communication, etc. The Company considers that its loans have low credit risk or negligible risk of default as the parties are well established entities and have strong capacity to meet the obligations.

Investments

The Company has invested in unquoted equity instruments and preference shares of its subsidiaries, and other company. The management actively monitors the operation of subsidiaries and joint venture which affect investments. The Company does not expect the counterparty to fail in meeting its obligations other than those specifically considered as impairment allowance as per the managementâs assessment.

(a) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is:

Provision for expected credit loss

(i) Financial assets for which loss allowance is measured using 12 months expected credit loss

The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognised during the reporting period in respect of these assets.

(ii) Financial assets for which loss allowance is measured using life time expected credit loss

For trade receivables, the Company follows the approach of a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.

Ageing analysis of trade receivables

The ageing analysis of the trade receivables (net) before adjustment of expected credit loss provision of Rs. 5.90 crores (31 March 2023: Rs. 7.70 crores) as of the reporting date is as follows:

C Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. The Company is exposed to market risk through its use of financial instruments and specifically to foreign currency risk, interest risk and commodity price risk which results from its operating, investing and financing activities.

(a) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of the Company is Indian Rupees (INR) and most of the transactions are carried out in INR. Exposure to currency exchange rates mainly arises from the Companyâs overseas sales and purchases which are primarily denominated in US Dollars (USD) and Euro (EUR).

55 Segment information

The business activities of the Company predominantly fall within a single reportable business segment, i.e. manufacturing of paints within India and sale of paints within India and outside India. There are no separately reportable business or geographical segments that meet the criteria prescribed in Ind AS 108 âOperating Segmentsâ. The aforesaid is in line with review of operating results by the chief operating decision maker.

56 As per the order of Hon''ble High Courts of Calcutta and Delhi in accordance with the Scheme of arrangement under Section 391394 of the Companies Act, 1956 between Shalimar Paints Limited, its subsidiary company, Shalimar Adhunik Nirman Private Limited (SANL), and their respective shareholders and creditors, the Company has transferred its Real Estate Division, consisting fixed assets and current assets valued at Rs. 5.77 crores (inclusive of stamp duty on land) to SANL. Out of the said consideration money, SANL has issued preference shares amounting to Rs. 0.50 crores. The balance consideration of Rs. 5.27 crores shall be discharged by payment in cash and which has been presented as interest free loan in the investments (refer note 8).

Further, as per the abovementioned arrangement, all debts, duties, undertakings, liabilities and obligations incurred by the Company in connection with the Real Estate Division on or after the appointed date shall be deemed to have been raised, used, incurred for and on behalf of SANL. This has resulted in the additional loan of Rs. 3.00 crores (31 March 2023: Rs. 2.95 crores), including interest, to SANL (refer note 9).

57 The Companyâs manufacturing plant situated at Nashik got a massive fire on 19 November 2016, which caused extortionate damage to the company, both on account of loss of assets i.e. building, plant and machinery, inventory etc. vis-a-vis loss of the profit during the period.

The Company had taken two insurance policies from United India Insurance Company Limited viz. Loss of Profit Policy and Reinstatement Policy and had filed the claims against those policies with the insurance company. The status of those claims is as under:

(i) The Company had claimed Rs. 32.90 crores in respect of Nashik Plant Fire under Loss of Profit Policy, and the surveyor appointed by the insurer has assessed the claim vide their survey report at Rs. 22.14 crores (loss of production method) and at Rs. 22.63 crores (turnover method) and thereafter further reduced the amount to Rs. 18.32 crores. Against the aforesaid claim, the Company has received in total Rs. 16.14 crores (Rs. 13.99 crores, as interim payment during earlier financial years). The remaining amount of Rs. 2.14 crores received during previous year had been shown under the head âOther Incomeâ. Aggrieved with the assessment being not fully indemnified, the Company invoked arbitration and has filed its claim of Rs. 12.57 crores before the Arbitral Tribunal, which is currently pending for adjudication.

(ii) The Company had claimed Rs. 59.35 crores in respect of Nashik Plant fire under Reinstatement Policy, and the surveyor appointed by the insurer had assessed the claim vide their survey report at Rs. 21.89 crores. Against the aforesaid claim, the Company had received total Rs. 20.91 crores in earlier financial years. Aggrieved with the assessment being not fully indemnified, the Company invoked arbitration and had filed its claim of Rs. 37.93 crores before the Arbitral Tribunal. On 05 January 2024, Arbitrator has passed an Award of Rs. 20.01 crores in favour of the Company for the claim filed under Reinstatement Policy. The Company is in the process of getting the award executed for its enforcement.

58 Term loans from financials institutions represent loan availed by the Company for working capital needs of business.

59 The Division Bench of Honâble High Court of Calcutta passed an order on 07 May 2009 requiring the Company to give immovable property to the extent of Rs. 4.50 crores as security in favour of Tara Properties Private Limited (the landlord of property at 13, Camac Street, Kolkata). The Company has given portion of its land at Goaberia (adjacent to Howrah plant), as security. Refer note 5.1(e).

60 Additional regulatory information not disclosed elsewhere in the financial information

a The Company has used the borrowings from banks and financial institutions for the specific purposes for which it were taken at the balance sheet date (refer note 26).

b The Company does not hold any investment property as defined under Ind AS 40.

c The Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets during the current or previous year (refer notes 5 and 7).

d The Company has not traded or invested in crypto currency or virtual currency during the current and previous year (refer notes 8 and 14).

e The Company has not granted loans or advances in the nature of loans to its promoters, directors, KMPs and other related parties (as defined under Companies Act, 2013), either severally or jointly with any other person other than referred in note 50.

f No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

j The Company has registered with Ministry of Corporate Affairs/ Registrar of Companies, all charges or satisfaction within the statutory time period.

k The Company is compliant in respect of number of layers prescribed under Clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

l The Company has not entered into any scheme of arrangement in the current and previous year.

m The Company has not advanced or provided loan to or invested funds in entity including foreign entity or to any other person with

the understanding that the intermediary shall(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

n The Company has not received any funds from any person or entity including foreign entity with the understanding that the company shall(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

o In view of continued lossess, the Company is not covered by Section 135 of the Companies Act, 2013 dealing with CSR activities.

p The Company has not undertaken any transaction which is not recorded in the books of accounts that has been surrendered or

disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

61 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which use accounting software for maintaining their books of accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.During the current year, the audit trail (edit logs) feature was not enabled at the database level for accounting software SAP (Database - Oracle 12C) to log any direct data changes, used for maintenance of all accounting records by the Company. Audit trail (edit log) is enabled at the application level as part of standard SAP framework.

62 Amounts below the rounding off norms adopted by the Company are presented as â0â.

63 Previous year figures have been regrouped/reclassified, wherever considered necessary in order to comply with financial reporting requirements. The impact of such regrouping/reclassification is not material to these standalone financial statements. Further, the Company has chosen to present these financial statements from INR lakhs to INR crores. Accordingly, the previous year numbers are presented to INR crores.

The accompanying notes are an integral part of standalone financial statement.

As per our report of even date attached

For Walker Chandiok & Co LLP For and on Behalf of the Board of Directors of

Chartered Accountants Shalimar Paints Limited

Firmâs Registration No.: 001076N/N500013

Ashish Gera Ashok Kumar Gupta Shan Jain

Partner Managing Director Director

Membership No.: 0508685 DIN:- 01722395 DIN:- 09661574

Sachin Naik Shikha Rastogi

Chief Financial Officer Company Secretary

Mem. No:- ACS 18226

Place : Gurugram Place : Mumbai

Date : 17 May 2024 Date : 17 May 2024

Mar 31, 2023

Provisions

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best
estimate.

3.22 Contract liabilities

3.23 Contingent liabilities

4 Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Companyâs standalone financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities at the date of the standalone financial statements. Estimates and assumptions are
continuously evaluated and are based on managementâs experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances.

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.

In particular, the Company has identified the following areas where significant judgements, estimates and assumptions are
required. Further information on each of these areas and how they impact the various accounting policies are described below
and also in the relevant notes to the standalone financial statements. Changes in estimates are accounted for prospectively.

i) Judgements

a) Contingencies

b) Provisions

c) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future
taxable income will be available against which the deductible temporary differences and tax loss carry-forward can be
utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or
uncertainties in various tax jurisdictions.

ii) 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 standalone
financial statements were prepared. Existing circumstances and assumptions about future developments, however, may
change due to market change or circumstances arising beyond the control of the Company. Such changes are reflected
in the assumptions when they occur.

a) Useful lives of tangible/intangible assets

The Company reviews its estimate of the useful lives of tangible/intangible assets at each reporting date, based on
the expected utility of the assets.

b) Defined benefit obligation

nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed
at each reporting date.

c) Inventories

d) Fair value measurement of financial instruments

e) Allowance for expected credit loss

The Company applies Expected Credit Losses (âECLâ) model for measurement and recognition of loss allowance on
trade receivables. In accordance with In accordance with Ind AS 109 - Financial Instruments, the Company applies
ECL model for measurement and recognition of impairment loss on the trade receivables or any contractual right to
receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115 - âRevenue
from Contracts with Customersâ.

For this purpose, the Company follows âsimplified approachâ for recognition of impairment loss allowance on the trade
receivable balances. The application of simplified approach does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition. As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance
on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the
expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the
historical observed default rates are updated and changes in the forward-looking estimates are analysed.

f) Application of new and revised Indian Accounting Standard (Ind AS)

All the Ind AS issued and notified by the Ministry of Corporate Affairs (âMCAâ) under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) till the financial statements are authorised have been considered in preparing
these standalone financial statements

Standards issued but not effective

The Ministry of Corporate Affairs ("MCA") vide its notification dated March 31, 2023 has notified Companies (Indian
Accounting Standards) Amendment Rules, 2023 to further amend the Companies (Indian Accounting Standards) Rules,
2015. Amendments have been made to the following standards

Amendment to Ind AS 12 and Ind AS 101

Now the Initial Recognition Exemption (IRE) does not apply to transactions that give rise to equal and offsetting temporary
differences. Narrowed the scope of IRE (with regard to leases and decommissioning obligations). Accordingly, companies
will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on transactions
such as initial recognition of a lease and a decommissioning provision. The amendments apply to transactions that occur
on or after the beginning of the earliest comparative period presented.

The application of this amendment is not expected to have a material impact on the Company''sâs standalone financial
statements

Amendment to Ind AS 1 and Ind AS 34 and Ind AS 107

Companies should now disclose material accounting policies rather than their significant accounting policies. The application
of this amendment is not expected to have a material impact on the Companyâs standalone financial statements.

Amendment to Ind AS 8

Definition of âchange in account estimateâ has been replaced by revised definition of âaccounting estimateâ. As per revised
definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement
uncertainty. The amendments listed above will be effective on or after April 1, 2023 and are not expected to significantly
affect the current or future periods.

Mar 31, 2018

1. âEmployee Benefitsâ, in accordance with Accounting Standard (Ind AS-19) :

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year. a) Defined Contribution Plans:-

The Company has recognized an expense of '' 123.45 lakhs (Previous Year '' 117.42 lakhs) towards the defined contribution plan.

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

During the year ended March 31, 2018 and March 31, 2017, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

The following methods and assumptions were used to estimate the fair values.

A. The fair values of derivatives are on MTM as per Bank

B. Company has opted to fair value its mutual fund & Preference shares investment through profit & loss

C. Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at amortized cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair value of other non-current financial assets and liabilities (security deposit taken/given, loans to subsidiary and advance to employees) carried at amortized cost is approximately equal to fair value. Hence carrying value and fair value is taken same.

D. Ind AS 101 allow company to measure its investment in subsidiaries, JVs and Associates at cost or at fair value on transition to Ind AS, Company has opted to value its investments in subsidiaries, JVs and Associates at cost.

E. Long-term borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

Fair value hierarchy

Level 1 - Quoted prices/NAV (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

2. FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES

The Companyâs financial liabilities comprise mainly of borrowings, trade payables and other payables. The Companyâs financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.

3. Financial risk factors

The Companyâs operational activities expose to various financial risks i.e. Market risk, Credit risk and Liquidity risk. The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk & interest rate risk. The Company calculates and compares the alternative sources of funding by including cost of currency cover also. The Company uses derivative financial instruments to reduce foreign exchange risk exposures.

i. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate risk, interest rate risk and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate

ii. Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk arising from trade receivable is managed in accordance with the company''s established policy, procedures and control relating to customer credit risk management. The concentration of credit risk is limited due to the fact that the customer base is large.

The deposits with banks constitute mostly the liquid investment of the company and are generally not exposed to credit risk

iii. Liquidity risk

Liquidity risk refers to risk of financial distress or high financing cost arising due to shortage of liquid funds in a situation where business conditions unexpetedly deteriorate and require financing. The Companyâs objective is to maintain at all times optimum levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2018:

4. Capital Risk Management

The Companyâs policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.

5. Impairment Review

Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations. During the year, the testing did not result in any impairment in the carrying amount of goodwill & other assets. The measurement of the cash generating unitsâ value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.

Key assumptions used in value-in-use calculations are:-

(i) Operating margins (Earnings before interest and taxes),

(ii) Discount Rate,

(iii) Growth Rates and

(iv) Capital Expenditure

6. Segment information

The Company operates mainly in one business segment (Business Segment) i.e. Paints; accordingly sales & stock in trade represent paints & allied products.

7. Loan to related party (refer note 9) includes the balance consideration of '' 492 lakhs (interest free) receivable by the Company in cash as per the order of Honâble High Courts of Calcutta and Delhi, for transfer of its Real Estate Division to the subsidiary company, Shalimar Adhunik Nirman Limited.

8. The Company has re-commissioned its Chennai Plant and started its commercial production w.e.f 4th September 2017.

9. Other receivable includes insurance claim receivable '' 904.45 lakhs (net of '' 1099.73 lakhs received during the year) related to Nasik plant and '' 1474.81 lakhs related to Howrah Plant. The above claim of receivables are accounted for on estimated basis pending final assessment by the insurer. The policy is on Reinstatement basis, and Loss of profit for 6 months is yet to be assessed by the Insurer.

10. Fixed assets and inventories, except the said damaged assets, have been verified & valued as per applicable accounting standards as well as existing accounting policies of the Company, with no material discrepancy.

11. Term Loan from financial institutions represent loan availed by company for working capital for business needs.

12. The Division Bench of Honâble High Court of Calcutta passed an order on 07/05/2009 requiring the Company to give immovable property to the extent of Rs, 4.5 Crores as a security in favour of Tara Properties (the landlord of property at 13, Camac Street, Kolkata). The Company has given portion of the land at Goaberia as a security.

13. Pursuant to the Scheme of Merger of Woodlands Medical Centre Limited with Woodlands Multispecialty Hospital Ltd., as approved by the Calcutta High Court on 29.11.2010, the Company applied for 2350 shares of Rs, 10 each fully paid up in Woodlands Multispecialty Hospital Ltd against debenture of Rs, 23,500 held in Woodlands Medical Centre Limited. Pending allotment, the same has been retained as debentures.

14 The company has considered fair value as deemed cost on date of transition to Ind AS i.e.1st April 2016 of certain items of its Property plant and equipment i.e Land, Building, Plant & Machinery and other assets. In accordance with option given under Ind AS 101 resulted impact of fair value has been recognized in Other Equity. Accordingly PPE value is increased by Rs, 13,730.27 lakhs and depreciation reflected in statement of profit & loss of current year is higher by Rs, 277.11 Lakhs for the year ended 31st March 2018 and to that extent loss is higher.

15. Some of the Financials assets & liabilities including trade receivables, trade payables and advances, are pending for confirmation/ reconciliation, and impact of the same on financial statements, if any, is unascertained.

16. Miscellaneous Receipts include debtors/creditors written back Rs, 0.21 lakhs (Previous Year Rs, 146.41 lakhs).

17. Finance charges include foreign exchange loss of Rs, 1.44 lakhs (previous year Rs, 14.41 lakhs).

18. FIRST TIME ADOPTION OF IND AS

These financial statements, for the year ended 31 March 2018, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101- First time adoption of Indian Accounting Standards, with 1st April, 2016 as the transition date and IGAAP as the previous GAAP.

This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP, including the balance sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.

A. Exemptions

Ind AS 101 First time adoption of Indian Accounting Standards allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the exemptions which have been explained below:

(i) Property, Plant and Equipment

The Company has elected to measure certain items of its of Property, Plant & Equipment (PPE) at the date of transition to Ind AS at their fair value. The Company has used the fair value of PPE, which is considered as deemed cost on transition. Fair valuations are assessed as on 1st April, 2016.

(ii) Investment in subsidiaries, joint ventures and associate

The carrying amounts of the Companyâs investments in its subsidiary companies as per the financial statements of the Company prepared under Previous GAAP, are considered as deemed cost for measuring such investments in the opening Ind AS Balance Sheet.

(iii) Share based payment transactions

Ind AS 102 deals with the accounting and disclosure requirements related to share-based payment transactions. The standard addresses three types of share-based payment transactions: equity-settled, cash-settled, and with cash alternatives. A first-time adopter is encouraged, but is not required, to apply Ind AS 102 to: (i) equity instruments that vested before the date of transition to Ind AS, (ii) liabilities arising from share-based payment transactions that were settled before the date of transition to Ind AS. The Company has opted not to apply Ind AS 102 to the equity instruments vested before the date of transition.

B. Ind AS Mandatory Exceptions

(i) Estimates

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model, fair valuation of financial instruments carried at FVTPL in accordance with Ind AS at the date of transition as these were not required under Indian GAAP.

(ii) Classification and Measurement of Financial Assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exists at the date of transition to Ind AS.

61(v) Notes to first-time adoption:

i Property, Plant and Equipment carried at deemed cost

The Company has opted the option of fair value as deemed cost for the Property Plant and Equipment as on the date of transition to Ind AS i.e. 1st April 2016 and impact of '' 13,730.27 Lakhs in accordance with said stipulations with resulted impact being accounted for in other equity. Company has reversed depreciation charged on revaluation of PPE as per previous GAAP and depreciation on Property, Plant and Equipment as per Ind AS has been accounted on fair value.

ii Investments

i) Investment in subsidiaries, associates and joint ventures (i) in equity shares has been considered at carrying value as deemed cost; (ii) other than equity shares has been considered at Fair value through P&L as on the date of transition to Ind AS i.e. 1st April 2016.

ii) Investment in Mutual Fund, these investments have been classified as fair value through Profit and Loss Account (FVTPL) on the date of transition.

iii Deferred Tax

The Company has accounted for deferred tax on various adjustment between Indian GAAP and Ind AS as well as on temporary differences between the carrying amount of assets and liabilities in the balance sheet and corresponding tax bases at the tax rate at which they are expected to be reversed. Corresponding net impact has been recognized in retained earnings/profit & loss/Other Comprehensive Income as applicable.

iv Excise duty, Discount, Rebate & Claims

Under Ind AS, revenue from sale of goods includes excise duty. Excise duty expense is presented separately on the face of the statement of profit and loss as part of expenses.

Under Indian GAAP, Discount, rebate and claim were recognized as expenses which has been adjusted against the revenue from sale of goods under Ind AS during the year ended 31st March 2017.

The said changes do not affect equity as at date of transition to Ind AS, profit after tax.

v Remeasurements of Defined Benefit Obligations

Under Ind AS, remeasurement benefits relating to defined benefit obligation is recognized in OCI as per the requirements of Ind AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognized in OCI. Under Previous GAAP, remeasurement benefit of defined benefit obligation, arising primarily due to change in actuarial assumptions was recognized as employee benefits expense in the Statement of Profit and Loss.The said changes do not affect Equity as at date of transition to Ind AS and as at 31st March,

2017.

vi Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

vii Share based payments

Under Indian GAAP, the Company recognized only the intrinsic value of the stock options given under Employee Stock Option Plan (ESOP) as an expense. Ind AS requires the fair value of share options to be determined using an appropriate pricing model for the purpose of recognizing expense over the vesting period. Accordingly, change in liability based on fair value of such options outstanding as unvested as at April 1, 2016 has been recognized as a separate component of equity against retained earnings. In statement of profit and loss for the year ended March 31, 2017 employee compensation expense due to fair valuation of options increased.

viii Financial assets and Financial Liabilities

Financial assets and financial liabilities have been classified as per Ind AS 109 read with Ind AS 32.

ix Statement of Cash Flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows. Amendment to Ind AS 7

Effective April 1, 2017, the Company adopted the amendment to Ind AS 7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement. The adoption of amendment did not have any material impact on the financial statements.

19. Recent Accounting Pronouncement

On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018. These amendments will come into force for financial periods beginning on or after April 1, 2018.

Ind AS 21, Foreign currency transactions and advance consideration

It clarified that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, shall be date when an entity has received or paid advance consideration in a foreign currency.

The Company has evaluated the effect of this on the financial statements and the impact is not material.

Ind AS 115- Revenue from Contract with Customers

As per revised standard an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers, are required to be made.

Transitional provisions provides two options:

i) Under the Retrospective approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors.

ii) Under the Cumulative catch - up approach, the cumulative effect of initially applying the standard shall be recognized retrospectively at the date of initial application i.e. 1st April 2018.

The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition approach and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.

20. Previous year figures have been regrouped/ rearranged / recast, wherever considered necessary to conform to current yearâs classification.

21. Notes 1 to 64 are annexed to and form an integral part of the financial statements.

Mar 31, 2016

1. Disclosure under the Micro, Small & Medium Enterprises Development Act, 2006

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure if any relating to amount unpaid as at the yearend together with interest paid / payable as required under the said Act have not been given.

2. The Company has adopted Accounting Standard 22 âAccounting for Taxes on Incomeâ; and the net deferred tax Assets amounting to Rs 95.97 lakhs has been recognized.

3. Advances to Subsidiary represent the balance consideration receivable by the Company in cash as per the order of Honorable High Courts of Calcutta and Delhi, for transfer of its Real Estate Division to the subsidiary company, Shalimar Adhunik Nirman Limited.

4 Employeesâ Benefits

The Company has adopted Accounting Standard 15 (Revised) Employee Benefits with effect from 1^st April, 2007. The following disclosures are made in accordance with Accounting Standard 15 (Revised) pertaining to Defined Benefit Plans:

(a) Defined Benefits Plans / Compensated absences - As per actuarial valuation on 31^st March 2016 I Expense recognized in the Statement of Profit and Loss

5 The Company has resolved to de-commission its Chennai Plant, due to technical reasons, with effect from 06^th April 2015, and depreciation after de-commissioning has not been charged to revenue. The said assets will be put to use once the plant restarts.

6 The Company, on the basis of expert opinion, is of the view that there will be no income tax liability as per the normal provisions of income tax or under MAT having regard to carry forward losses( as per the income tax) & book losses of financial years 2013-14 & 2014-15 , as brought forward losses for the current year.

7 The insurance claim of loss for damage of building & inventories due to fire in Howrah Plant is yet to be assessed by the Insurer. Fixed assets and inventories, except the said damaged assets, have been verified & valued fairly during the year by the Company as per its accounting policy with no material discrepancy.

8 Some of the debtors, creditors & advances are pending confirmation /reconciliation, and impact of the same, if any, is unascertained.

9 Miscellaneous Expenses is net off of Rs. 112.63 lacs on account of liability written back (previous year Rs. 65.43lacs).

10. Finance charges include foreign exchange loss of Rs. 16.37 lacs (previous year Rs. 99.57lacs).

11. The Company operates mainly in one business segment i.e. Paints; accordingly sales & stock in trade represent paints.

12. Previous yearâs figures have been regrouped / rearranged, wherever necessary.

Mar 31, 2015

1.1 Liabilities in Note 2.8(ii) include : (i) Rs. 1250.67 Lacs (Previous Year Rs. 2401.69 Lacs) outstanding in respect of facilities granted to the Company by Small Industries Development Bank of India (SIDBI) as well as interest accrued but not due thereon. Facilities are secured by a first charge on Company's entire fixed assets of Sikandrabad Plant.

(ii) Rs. 1739.85 Lacs(Previous Year Rs. 3459.12 Lacs) outstanding in respect of facilities granted to the Company by AXIS Bank as well as interest accrued but not due thereon.

1.2 Disclosure under The Micro, Small & Medium Enterprises Development Act, 2006:

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

1.3 Advances to Subsidiary represents the balance consideration receivable by the Company in cash as per the order of Honorable High Courts of Calcutta and Delhi, for transfer of its Real Estate Division to the subsidiary company, Shalimar Adhunik Nirman Limited.

1.4 The Company has written off doubtful debts amounting to Rs. 15.38 lacs (included under the head Miscellaneous expenses in Note 2.26) outstanding for more than three years as at the year end. In the previous year, the said write off amounting to Rs. 375.42 lacs were made on review of doubtful debts on case to case basis.

1.5 Inventory Value has been adjusted on account of shortage thereof for Rs. NIL (previous year Rs. 602.51 lacs).

1.6 Miscellaneous Receipts include Rs. 65.43 lacs (previous year Rs. 35.82 lacs) on account of liability written back (net).

1.7 Some of the debtors, creditors & advances are pending confirmation /reconciliation, and impact of the same, if any, on the accounts of the Company ,is unascertained.

1.8 Finance charges include foreign exchange loss of Rs. 99.57 lacs (previous year Rs. 280.58 lacs).

1.9 The Company operates mainly in one business segment i.e. Paints; accordingly sales & stock in trade represent paints.

1.10 Previous year's figures have been regrouped / rearranged, wherever necessary.

Mar 31, 2014

Share Capital

Increase in number of shares consequent upon splitting of equity share of face value of Rs. 10 each to face value of Rs. 2 each as per resolution passed at EOGM dated October 26, 2012 by shareholder

Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Rs. 2 each. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Disclosure under The Micro, Small & Medium Enterprises Development Act, 2006:

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, and hence disclosure if any relating to amount unpaid as at the year-end together with interest paid / payable as required under the said Act have not been given.

Employees'' Benefits

The Company has adopted Accounting Standard 15 (Revised) Employee Benefits with effect from 1st April, 2007.

There has been a major fire break out on March 12, 2014 at Howrah Factory of the Company resulting in substantial damage of stocks, plant & machineries and factory building. Besides this, some financial records, including Fixed Assets register, were also destroyed. These assets are insured.

Intimation of fire has been given to insurer, and claim settlement is under process. The Company has accounted for insurance claim receivable for Rs. 1532.25 lacs [included in Note 2.18(iii)]. Pending final ascertainment of the claim by the insurer, the adjustment in fixed assets for losses incurred has been done as per the Company''s own estimation which may vary on assessment made by the insurer.

The Company has written off doubtful debts amounting to Rs. 375.42 lacs (included under the head miscellaneous expenses in Note 2.26) outstanding for more than three years as at the year end. In the previous year, the said write off amounting to Rs. 133.00 lacs were made on review of doubtful debts on case to case basis.

Inventory Value has been adjusted on account of shortage thereof for Rs. 602.51 lacs.

Miscellaneous Receipts include Rs. 35.82 lacs on account of liability written back (net).

Some of the debtors, creditors & advances are pending confirmation /reconciliation, and impact of the same, if any, on the accounts of the Company, is unascertained.

The Company operates mainly in one business segment i.e. Paints; accordingly sales & stock in trade represent paints.

Finance charges include foreign exchange loss of Rs. 280.58 lacs (previous year Rs. 149.33 lacs).

Exceptional items relate to restructuring cost of Rs. Nil (Previous year- Rs. 211.78 lacs), and the same has been considered by the management, as ''exceptional item''.

Previous year''s figures have been regrouped / rearranged, wherever necessary.

Mar 31, 2013

1.1 Contingent Liabilities

Contingent liability not provided for in respect of :

i) Excise Duty 209.20 292.40

ii) Bank Guarantee 1,322.75 1,488.04

iii) Sales Tax 354.81 311.69

iv) Claims against the Company not acknowledged as debt (to the extent ascertained) 57.47 63.79

v) Income Tax 5.45 -

1.2 In case of one of the Company''s offices previously taken on rent, the division Bench of High Court of Calcutta has directed appointment of a Special Referee to arrive at mesne profit payable by the Company.The liability on account of mesne profit as on date Cannot be ascertained.

1.3 Disclosure under The Micro, Small & Medium Enterprises Development Act, 2006:

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

1.4 The Company has adopted Accounting Standard 22 "Accounting for Taxes on Income"; and the net deferred tax liabilities amounting to Rs. 257.98 lacs has been recognised.

1.5 Advances to Subsidiary represents the balance consideration receivable by the Company in cash as per the order of Honorable High Courts of Calcutta and Delhi, for transfer of its Real Estate Division to the subsidiary company, Shalimar Adhunik Nirman Limited.

1.6 Employees'' Benefits

The Company has adopted Accounting Standard 15 (Revised) Employee Benefits with effect from 1st April, 2007.

The following disclosures are made in accordance with Accounting Standard 15 (Revised) pertaining to Defined Benefit Plans :

1.7 There has been a fire break out on January 4, 2013 at Nasik Factory of the Company resulting in damage to a portion of stocks, plant & machineries and a part of building. These assets are insured and accordingly a claim has been lodged with the insurance company. Pending final ascertainment of the claim, the adjustment in fixed assets, which is not material, shall be carried out once the overall loss amount is assessed by the insurer.

1.8 The Company operates mainly in one business segment i.e. Paints; accordingly sales & stock in trade represent paints.

1.9 Finance cost include foreign exchange loss of Rs. 149.33 lacs (previous year Rs. 253.33 lacs). In the earlier years, the said losses were shown under the head ''Miscellaneous Expenses.

1.10 Exceptional items relates to restructuring cost. The Company has incurred during the year restructuring expenses of Rs. 211.78 lacs and the same has been considered by the management as Exceptional item.

1.11 Previous year''s figures have been regrouped / rearranged, wherever necessary.

Mar 31, 2012

(i) The Company has only one class of shares viz., Equity Shares having a Par Value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.

1.2 Contingent Liabilities (Rs.in Lacs) Contingent liability not provided for in respect of :

2011-12 2010-11

i) Excise Duty 292.40 234.50

ii) Bank Guarantee 1,488.04 1,416.15

iii) Sales Tax 311.69 287.85

iv) Claims against the Company not acknowledged as debt (to the extent ascertained) 63.79 72.18

1.2 In case of one of the Company's offices previously taken on rent, the division Bench of Hon'ble High Court of Calcutta has directed appointment of a Special Referee to arrive at mesne profit payable by the Company. The liability on account of mesne profit as on date cannot be ascertained.

1.3 The small-scale industrial undertakings to whom the Company owes any sums which is outstanding for more than 30 days are M/s. Atlas Tin Box Co., M/s. Aurum Pharmachem Pvt. Ltd, M/s. Associated Containers & Barrels Pvt. Ltd., M/s. Arvind Cans Limited, M/s. Bhavya Container & Estate company, M/s. Bijaya Drums Pvt. Ltd., M/s. Calcutta Containers Co., M/s. Calcutta Paper Industries, M/s. Choudhary Tar & Chemicals, M/s. Choudhary Industries, M/s. Evergreen Drums & Cans Pvt. Ltd., M/s. Globe Logistics (India), M/s. Indian Tin Box Mfg. Co. Pvt. Ltd., M/s. J.S. Transystem, M/s. Krishna Technochem Pvt. Ltd., M/s. Kapilesh Udyog, M/s. Karna Paints (P) Ltd., M/s. K B Engineering Co. Pvt. Ltd., M/s Mastan Tin Works, M/s. Micas Organics Ltd., M/s. Mittal Containers Pvt. Ltd., M/s. Mangla Metals (P) Ltd., M/s. Moongipa Roadways, M/s. Pearson Drums & Barrels Pvt. Ltd., M/s. Piyanshu Chemicals Pvt. Ltd., M/s. S.R. Packaging & Industries Pvt. Ltd., M/s. Sam Transport (P) Ltd., M/s. Somani Oil Industries, M/s. Shri Metal Containers, M/s. Sunrise Chemicals, M/s. Todi Bulk Carriers Pvt. Ltd., M/s. Tin Box Company , M/s. Techcon India Pvt. Ltd., M/s. 20 Microns Nano Minerals Ltd., M/s. Western Cans Pvt. Ltd, and M/s Anand Tin. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

1.4 The Company has adopted Accounting Standard 22 "Accounting for Taxes on Income"; and the net deferred tax liabilities amounting to Rs. 282.85 lacs pertaining to the current year has been recognised.

* Amount Written Off/Back during the year NIL as well as previous year NIL for related parties (Note - Figures in bracket represent previous year amount)

1.5 Advance to Subsidiary represents the balance consideration receivable by the Company in cash as per the order of Honorable High Courts of Calcutta and Delhi, for transfer of its Real Estate Division to the subsidiary company, Shalimar Adhunik Nirman Limited.

1.6 Employees' Benefits

The Company has adopted Accounting Standard 15 (Revised) 'Employee Benefits' with effect from 1st April, 2007.

The following disclosures are made in accordance with Accounting Standard 15 (Revised) pertaining to Defined Benefit Plans :

1.7 The Company operates mainly in one business segment i.e. Paints; accordingly sales & stock in trade represent paints.

1.8 Finance charges, under Miscellaneous Expenses, include foreign exchange loss of Rs. 253.33 lacs (previous year Rs. 9.20 lacs)

1.9 Previous year's figures have been regrouped / rearranged, wherever necessary.

Statement Regarding Subsidiary Company Pursuant to Section 212 of Companies Act, 1956

1. Name of the Subsidiary Company

Shalimar Adhunik Nirman Ltd.

2. The Financial Year of the Subsidiary Company ended

31st of March 2012

3. Holding Company's Interest as at 31.03.2012 a) i) No. of Fully Paid up Shares held

49,990 Shares of Rs. 10/- each

ii) No. of Partly Paid Equity Shares held

4,50,000 Shares of Rs. 10/- each (Rs. 1/- paid up)

iii) No. of Fully paid up Preferential Share held

50,000 shares of Rs. 100/- each

b) Percentage of shareholding

99.99%

4. Net aggregate amount of Profits/Losses of the Subsidiary so far as it concerns the members of the Company

a) Not dealt with in the Accounts of the Company for the financial year ended 31st March, 2012

i) for the financial year of the Subsidiary

NIL

ii) for previous financial years of the

Subsidiary since it became Subsidiary of the Company.

NIL

b) Dealt with in the Accounts of the Company i) for the financial year of the Subsidiary

NIL

ii) for previous financial years of the

Subsidiary since it became Subsidiary of the Company.

NIL

Mar 31, 2011

For the year For the year ended ended 31st March 31st March 2011 2010 Rs. Rs.

1. Cash Credit and Working Capital Demand Loans from banks are secured by paripassu hypothecation of Current Assets namely, stock of raw materials, stock in process, semi-finished and finished goods,consumable stores and spare parts , bills receivables and book debts and all other movables of Company's factories, premises and godowns situated at Howrah, Nasik and Sikandrabad (U.P.) and various places located throughout the country; and first charge on Company's all Plant and Machinery at Howrah plant and first charge on Company's entire fixed assets of Nasik Plant and second charge on Company's entire fixed assets of Sikandrabad plant.

2. Liabilities in Schedule 10 include Rs.1990.46 Lacs (Previous Year Rs. 1594.52 Lacs) outstanding in respect of facilities granted to the Company by Small Industries Development Bank of India (SIDBI) as well as interest accrued but not due thereon. Facilities are secured by a first charge on Company's entire fixed assets of Sikandrabad Plant.

3. Auto Loans are secured by hypothecation of the vehicles financed out of such loans. 18,90,47 9 8,69,010

4. Contingent Liabilities Contingent Liabilities not provided for in respect of :

Excise Duty 2,34,49,659 1,49,06,491

Bank Guarantees 14,16,14,900 11,14,89,491

Sales Tax 2,87,85,000 2,32,63,000

5. The small-scale industrial undertakings to whom the Company owes any sums which is outstanding for more than 30 days are M/s. Atlas Tin Box Co., M/s. Aurum Pharmachem Pvt. Ltd., M/s. Anand Packaging, M/s. Associated Containers & Barrels Pvt. Ltd., M/s. Arvind Cans Limited, M/s. Baba Container Manufacturers, M/s. Bijaya Drums Pvt. Ltd., M/s. Calcutta Containers Co., M/s. Calcutta Paper Industries, M/s. Containers & Seals, M/s. Choudhary Tar & Chemicals, M/s. Choudhary Industries, M/s. Cross Point Chemical Industries, M/s. Damani Packaging Pvt. Ltd., M/s. Evergreen Drums & Cans Pvt. Ltd., M/s. Floana Coatings, M/s. Globe Logistics (India), M/s. Indian Tin Box Mfg. Co. Pvt. Ltd., M/s. J.S. Transystem, M/s. Krishna Technochem Pvt. Ltd., M/s. Kapilesh Udyog, M/s. Karna Paints (P) Ltd., M/s. K B Engineering Co. Pvt. Ltd., M/s Mastan Tin Works, M/s. Maxim, M/s. Micas Organics Ltd., M/s. Mittal Containers Pvt. Ltd., M/s. Mangla Metals (P) Ltd., M/s. Moongipa Roadways, M/s. Pearson Drums & Barrels Pvt. Ltd., M/s. Pearson Containers Co., M/s. Piyanshu Chemicals Pvt. Ltd., M/s. Regent Paints Pvt. Ltd., M/s. S.R. Packaging & Industries Pvt. Ltd., M/s. Sunflag Chemicals Pvt. Ltd., M/s. Sam Transport (P) Ltd., M/s. Surya Containers Pvt. Ltd., M/s. Somani Oil Industries, M/s. Somani Oils & Chemicals, M/s. Shri Metal Containers, M/s. Sunrise Chemicals, M/s. Todi Bulk Carriers Pvt. Ltd., M/s. Tin Box Company , M/s. Techcon India Pvt. Ltd., M/s. 20 Microns Nano Minerals Ltd., and M/s. Western Cans Pvt. Ltd. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

6. Advances to Subsidiary represents the balance consideration receivable by the Company in cash as per the order of Honorable High Courts of Calcutta and Delhi, for transfer of its Real Estate Division to the subsidiary company, Shalimar Adhunik Nirman Limited.

7. Cash and Cheques in hand include cheques in hand Rs. 9,70,18,312 ( Previous Year Rs. 8,98,83,360).

8. Employees Benefits

The Company has adopted Accounting Standard (AS 15) (Revised) Employee Benefits with effect from 1st April, 2007.

9. The Company operates in mainly one business segment i.e. Paints.

10. Finance charges, under Miscellaneous Expenses, include foreign exchange loss of Rs. 9,19,747 (previous year Rs. NIL).

11. Previous year's figures have been rearranged, where necessary.

12. Financial figures have been rounded off to nearest rupee.

Mar 31, 2010

1. Cash Credit and Working Capital Demand Loans from banks are secured by pari-passu hypothecation of the Companys entire stock of raw materials, finished goods, stocks in process, consumable stores and spare parts and book debts and first charge on the fixed assets of the Nasik plant and second charge on the fixed assets of Sikandrabad plant.

2. Liabilities in Schedule 10 include Rs. 1594.52 Lacs (Previous Year Rs. 1189.12 Lacs) outstanding in respect of facilities granted to the Company by Small Industries Development Bank of India (SIDBI) as well as interest accrued but not due thereon. Facilities are secured by a first charge on the immovable property of Sikandrabad plant and by second charge by way of hypothecation of entire movable assets (save and except book debts) of the Company, subject to prior charges, created and/or to be created, in favour of the Companys Bankers for securing the borrowings for working capital requirements. The charges ranking pari-passu between the Financial Institutions.

3. Auto Loans are secured by hypothecation of the vehicles financed out of such loans.

4. Contingent Liabilities Contingent Liabilities not provided for in respect of :

Excise Duty 1,

Income Tax / FBT

Bank Guarantees 11,

Sales Tax 2,

5. In case of one of the Companys offices on rent, the Division Bench of Kolkata High Court has directed appointment of a Special Referee to arrive at mesne profit payble by the Company. The liability on account of mesne profit as on date cannot be ascertained.

6. Claims against the Company not acknowledged as debt (to the extent ascertained)

7. Estimated amount of capital commitments, net of advance of Rs 4,25,000 (previous year Rs. 10,42,707)

8. Uncalled Liability on Partly paid up shares

9. AuditorsÃ Remuneration Audit fees Tax Audit fees Certification fees and other Services Out of pocket expenses

10. Consumption of Stores

11. CIF Value of Imports

Raw Materials 19

12. Expenditure in foreign currency

Purchase of raw material 12

13. Amounts remitted in foreign currency on account of Dividend

a) Number of Non-resident shareholders

b) Number of shares held by them

c) Amount of dividend remitted

d) Year to which dividend relates

14. The "Advance to Subsidiary" Rs. 5,49,13,547/- (in the beginning of the year representing the consideration money receivable by the Company for transfer of Fixed Assets & Current Assets of its Real Estate Division, to the subsidiary Company, "the transferee Company") has been adjusted for preference shares of Rs. 50,00,000/- (Rupees fifty lakhs) allotted during the year by the Subsidiary Company, as detailed in Schedule 5 i.e. "Investments", the balance consideration of Rs. 4,99,13,547/- shall be discharged by the transferee Company, in cash, as per the order of HonÃble High Court of Calcutta and Delhi.

15. Exceptional Items as referred to in the Profit & Loss Account, represent write off of irrecoverable debts of Rs. 2,04,42,347.

16. Employees Benefits

The Company has adopted Accounting Standard (AS 15) (Revised) Employee Benefits with effect from 1st April, 2007.

17. The Company operates in mainly one business segment i.e. Paints.

18. Finance charges, under Miscellaneous Expenses, include foreign exchange loss of Rs. NIL (previous year Rs. 1,73,21,650).

19. Previous years figures have been rearranged, where necessary.

20. Financial figures have been rounded off to nearest rupee.

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