|The Company does not have any geographical segment.
@ As per the records of the Company, including its register of members
As per the Companies Act 2013, the holders of equity shares will be
entitled to receive remaining assets of the Company, after distribution
of all preferential amounts in the event of liquidation of the Company.
However no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the
The Board of Directors at its meeting held on 23rd October, 2015
declared an interim dividend of Rs. 2.20 (Rupees two and paise twenty
only) per equity share of Rs. 1 each. A final dividend of Rs. 5.30 (Rupees
five and paise thirty only) per equity share of Rs. 1 has been
recommended by the Board of Directors at its meeting held on 11th May,
2016, subject to the approval by the shareholders at the ensuing Annual
General Meeting. If approved, the total dividend (interim and final
dividend) for the financial year 2015-16 will be Rs. 7.50 per equity
share of Rs. 1 each (Rs. 6.10 per equity share of Rs. 1 each was paid as
total dividend for the previous year). The total dividend appropriation
for the year ended 31st March, 2016 amounted toRs. 864.53 crores
including corporate dividend tax of Rs. 145.14 crores. (Previous year Rs.
698.07 crores including corporate dividend tax of Rs. 112.95 crores).
The Company has partnered with National Skill Development Corporation
(NSDC) for undertaking a painter skill development project. Under the
arrangement, the Company is granted a financial assistance of Rs. 0.31
crores from NSDC disbursable in five tranches. The assistance is
secured by a bank guarantee provided by the Company to NSDC on the
outstanding amount. The assistance carries an interest @ 6% p.a and is
repayable over a period of nine years including a moratorium of three
years on the principal amount, starting from the date of first
disbursement. During the year 2014-15, the Company received Rs. 0.06
crores as per the schedule of disbursement and no amounts are repayable
during the next one year.
# Interest free loan from The Pradeshiya Industrial Corporation of U.R
Limited (PICUP) under Sales Tax Deferment Scheme of Government of Uttar
Pradesh was secured by a first charge on the Company's immovable
properties of the paint plant at Kasna and by way of hypothecation of
all movable properties at the above location. This interest free loan
had a deferment period of 10 years and was repayable in 9 yearly
installments starting from May, 2007 as per repayment schedule. Out of
the total loan of Rs. 30.60 crores, the Company had already repaid Rs.
27.36 crores till 31st March, 2015 and the balance amount of Rs. 3.24
crores was paid during the current year by 31st May, 2015. Pursuant to
the repayment of loan, the charge on Company's immovable properties was
## The Company is eligible to avail interest free loan in respect of
50% of VAT paid within Haryana on the sale of goods produced at Rohtak
plant for a period of 7 financial years beginning from April, 2010. For
the year ended 31st March, 2011 and 31st March 2012, the Company has
already received the interest free loan ofRs. 3.41 andRs. 5.90 crores
respectively. This loan is secured byway of a bank guarantee issued by
the Company and is repayable after a period of 5 years from the date of
receipt of interest free loan. For the year ended 31st March, 2013,
31st March, 2014 and 31st March, 2015, the Company has made the
necessary application to the Haryana Government for the issue of
eligibility certificate and for the year ended 31st March, 2016, the
Company is in the process of making the necessary application.
### Sales tax deferment scheme- State of Andhra Pradesh represents
sales tax deferment availed under the Sales tax deferment scheme of the
Government of Andhra Pradesh. It has a deferement period of 14 years
and is repayable over 9 years as per repayment schedule starting from
April, 2012. Out of the total sales tax deferement loan of Rs. 40.70
crores the Company has already repaid Rs. 12.08 crores till 31st March,
2016 and balance amount of Rs. 28.62 crores is repayable in next 4 years
upto February, 2020.
* Default in terms of repayment of principal and interest - NIL
(Previous year: NIL)
A. Assets given on operating lease
The Company does not have any assets given on operating lease during
the reporting period.
B. Assets taken on operating lease
a. The Company has taken certain assets such as Vehicles, Computers
and Information Technology hardware on an operating lease basis. The
lease rentals are payable by the Company on a monthly or quarterly
b. Future minimum lease rentals payable as at 31st March, 2016 as per
the lease agreements:
c. Lease payments recognised in the Statement of Profit and Loss for
the period is Rs. 10.15 crores (Previous year Rs. 9.10 crores).
NOTE 43 : Pursuant to Accounting Standard (AS-27) - Financial Reporting
of Interests in Joint Ventures, the disclosures relating to the two
Joint Venture Companies viz., PPG Asian Paints Private Limited and
Asian Paints PPG Private Limited (both hereinafter referred to as JVs)
are as follows:
a) The proportion of interest of the Company in the JVs is by way of
equal equity participation with PPG Industries Securities Inc., U.S.A.
1) Short term employee benefits:
The liability towards short-term employee benefits for the year ended
31st March, 2016 has been recognized in the Statement of Profit and
2) Post-employment benefits:
The following disclosures are made in accordance with AS-15 (Revised)
pertaining to Defined Benefit Plans:
i) The gratuity fund assets and liabilities are managed by Asian Paints
(India) Limited Employees' Gratuity Fund.
ii) The Company estimates that the balance amount to be contributed to
the gratuity fund during the financial year 2016-2017 will be Rs. 0.21
b) Provident Fund:
The Provident Fund assets and liabilities are managed by 'Asian Paints
Office Provident Fund' and Asian Paints Factory Employees Provident
Fund' in line with The Employees' Provident Fund and Miscellaneous
Provisions Act, 1952.
The guidance on Implementing AS 15, Employee Benefits (revised 2005)
issued by Accounting Standards Board (ASB) states that benefits
involving employer established provident fund, which require interest
shortfalls to be recompensed, are to be considered as defined benefit
plans. The plan guarantees minimum interest at the rate notified by the
Provident Fund Authorities. The contribution by the employer and
employee together with the interest accumulated thereon are payable to
employees at the time of separation from the Company or retirement,
whichever is earlier. The benefit vests immediately on rendering of the
services by the employee. In terms of the guidance note issued by the
Institute of Actuaries of India for measurement of provident fund
liabilities, the actuary has provided a valuation of provident fund
liability and based on the assumptions provided below, there is no
shortfall as at 31st March, 2016 and 31st March, 2015.
The Company contributed Rs. 10.29 crores and Rs. 9.18 crores towards Asian
Paints Office Provident Fund during the year ended 31st March, 2016 and
31st March, 2015 respectively. The Company contributed Rs. 5.52 crores
and Rs. 5.26 crores towards Asian Paints Factory Employees Provident Fund
during the year ended 31st March, 2016 and 31st March, 2015
The Company's manufacturing facility at Khandala, Maharashtra has been
granted "Mega Project Status" by Government of Maharashtra and hence is
eligible for Industrial Promotion Subsidy (IPS) under Package Scheme of
Incentive, 2007 in the form of refund of VAT paid to Maharashtra
Government, exemption on electricity duty and stamp duty within a
period of 9 years from the date of commencement of commercial
production, restricted to a maximum of 100% of fixed capital investment
as per the Eligibility Certificate issued by Director of Industries,
Government of Maharashtra. In terms of the Accounting Standard (AS 12)
"Accounting for Government Grants" prescribed by Companies (Accounting
Standards) Amendment Rules, 2006, eligible incentive as mentioned above
amounting to Rs. 134.11 crores for year ended 31st March, 2016 (Previous
Year - Rs. 108.96 crores) is credited to Statement of Profit and Loss
under the head "Other operating income" on accrual basis.
NOTE 2 : ACQUISITION OF ESS ESS BATHROOM PRODUCTS PRIVATE LIMITED
During the previous year, the Company acquired the entire front end
sales business including brands, network and sales infrastructure of
Ess Ess Bathroom Products Private Limited effective 1st June, 2014 for
a consideration of Rs. 36.48 crores. As a result of this transaction,
intangible assets consisting of Goodwill of Rs. 38.58 crores and Brand of
Rs. 4.28 crores has been recognized in the Financials of the Company in
the previous year. The financial results of this business for the year
ended 31st March, 2016 are reported as a separate segment under 'Home
Improvement' in Segment Reporting (Refer Note 49).
NOTE 3 : INFORMATION ON RELATED PARTY TRANSACTIONS AS REQUIRED BY
ACCOUNTING STANDARD (AS-18) ON RELATED PARTY DISCLOSURES FOR THE YEAR
ENDED 31st MARCH, 2016.
a) Joint Venture: (In which the Company has 50% equity interest)
i. PPG Asian Paints Private Limited.
Wholly owned subsidiaries of PPG Asian Paints Private Limited:
a) Faaber Paints Private Limited.
b) PPG Asian Paints Lanka Private Limited, ii. Asian Paints PPG
* The company has filed an application for striking off the name of
Company under the "Fast Track Exit mode" under Section 560 of Companies
Act, 1956. (Refer Note 5IB)
# During the year, as part of consolidation of investments in overseas
subsidiaries, Asian Paints (International) Limited, Mauritius, a wholly
owned subsidiary of the Company, has transferred its entire holding in
subsidiaries to its wholly owned subsidiary, Berger International
Private Limited , Singapore. This does not have any impact on the
* PT Asian Paints Color Indonesia has been incorporated in Indonesia as
a wholly owned subsidiary of Berger International Private Limited
during the year.
@ Berger International Private Limited , Singapore ("BIPL"), a wholly
owned indirect subsidiary of the Company, acquired 51% stake in Kadisco
Paint and Adhesive Industry Share Company for a consideration of US$
18.95 million (Rs. 117 crores) in cash, on 9th February, 2015.
- During the previous year, Berger International Private Limited (BIPL)
(formerly known as Berger International Limited) has become a wholly
owned subsidiary of Asian Paints (International) Limited (APIL).
** During the year, Kitchen Grace India Private Limited has been merged
with Sleek International Private Limited pursuant to a scheme of
amalgamation approved by Honourable High Court of Bombay, effective 1st
c) Key Managerial Personnel:
Name of the Director Designation
Shri K.B.S. Anand Managing Director & CEO
Shri Jayesh Merchant CFO & Company Secretary, President - Industrial
d) Promoters and their relatives having control:
Shri Ashwin Choksi Non-Executive Chairman
Shri Ashwin Dani Non-Executive Vice Chairman
Shri Mahendra Choksi Non-Executive Director
Shri Abhay Vakil Non-Executive Director
Shri Malav Dani Non-Executive Director
Ms. Amrita Vakil Non-Executive Director
Relatives of promoters who are under the employment of the Company:
Shri Jalaj Dani*
Shri Manish Choksi**
Shri Jigish Choksi (upto 3rd April, 2015)
Shri Varun Vakil
Shri Vivek Vakil (upto 29th July, 2015)
* Shri Jalaj Dani, a relative of Company's Non-Executive Vice Chairman
was also a Non-Executive Chairman of Berger International Private
Limited, till 9th September, 2015, Director on the Board of one of the
subsidiary companies and one of the joint venture companies.
** Shri Manish Choksi, a relative of Company's Non-Executive Director
is also a Non-Executive Chairman of Berger International Private
Limited w.e.f. 10th September, 2015, Director on the Board of some of
the subsidiary companies and one of the joint venture companies.
e) Companies controlled by Directors/Relatives of Directors :
AR Intertect Design Pvt. Ltd. Hitech Plast Ltd. Riash Realty Private
ARI Designs LLP * Hitech Skills Development P Ltd. Ricinash Oil Mill
Asteroids Trading and Investments Pvt. Ltd. Hitech Specialities
Solutions (India) Ltd. Rituh Holding and Trading Company Pvt. Ltd.
Avinash Holding and Trading Co. Pvt. Ltd. Hydra Trading Pvt. Ltd.
Rupen Investment and Industries Pvt. Ltd.
Canes Venatici Trading Company Pvt. Ltd. ISIS Holding and Trading Co.
Pvt. Ltd. S.C. Dani Research Foundation Pvt. Ltd.
Castle Investment and Industries Pvt. Ltd. Jalaj Trading and
Investments Pvt. Ltd. Sadavani Investments and Trading Co. Pvt. Ltd.
Centaurus Trading and Investments Pvt. Ltd. Jaldhar Trading and
Investments Pvt. Ltd. Sapan Investments Pvt. Ltd.
Clear Mipak Packaging and Solutions Ltd. Kalica Paper Industries Pvt.
Ltd. Satyadharma Investments and Trading Co. Pvt. Ltd.
Dani Charitable Foundation Lambodar Investment and Trading Co. Ltd.
Smiti Holding and Trading Co. Pvt. Ltd.
Dani Finlease Ltd. Lyon Investment and Industries Pvt. Ltd. Sudhanva
Investments and Trading Co. Pvt. Ltd.
Doli Trading and Investments Pvt. Ltd. Murahar Investments and Trading
Co. Ltd. Suptaswar Investments and Trading Co. Pvt. Ltd.
Elcid Investments Ltd. Navbharat Packaging Industries Ltd. Suryakant
Paint Accessories Pvt. Ltd.
ELF Trading and Chemicals Mfg. Ltd. Nehal Trading and Investments Pvt.
Ltd. tlnnati Trading & Investments R Ltd.
Geetanjali Trading and Investments Pvt. Ltd. Paladin Paints and
Chemicals Pvt. Ltd. # Vikatmev Containers Ltd.
Germinait Solutions Pvt. Ltd. Parekh Plast India Ltd.
Gujarat Organics Ltd. Pragati Chemicals Ltd.
Hiren Holdings Pvt. Ltd. Rayirth Holding and Trading Co. Pvt. Ltd.
Hitech Insurance Broking Services Ltd. Resins and Plastics Ltd.
* w.e.f. 13th June, 2015
# w.e.f. 22nd April, 2015
f) Employee Benefit Funds where control exists:
Asian Paints Office Provident Fund
Asian Paints Factory Employees' Provident Fund
Asian Paints Management Cadres' Superannuation Scheme
Asian Paints (India) Limited Employees' Gratuity Fund
g) Other entity over which there is a significant influence:
Asian Paints Charitable Trust
NOTE 4 : During the previous year, the Board of Directors of the
Company approved the conversion of outstanding loan to Maxbhumi
Developers Limited (a wholly owned subsidiary) amounting to Rs. 14.99
crores into 3,57,084 equity shares of Maxbhumi Developers Limited of
face value Rs. 10/- per equity share at a premium of Rs. 410/- per equity
share based on an independent valuation carried out. In addition to the
above, the Company also subscribed to an additional 11,916 equity
shares of the face value of Rs. 10/-per equity share at a premium of Rs.
410/- per equity share during the year ended 31st March, 2015.
A. The Company has made an assessment of the fair value of investment
made in its subsidiary, Sleek International Private Limited ('Sleek')
taking into account the past business performance, prevailing business
conditions and revised expectations of the future performance given the
understanding built up since acquisition. Based on above factors and as
a matter of prudence, the Company has made a provision for diminution
in the value of investment made in Sleek to the tune of Rs. 65.30 crores
in the year ended 31st March, 2016. The same is disclosed under
"Exceptional items" in the Statement of Profit and Loss.
B. The Company's wholly owned non-operating subsidiary company,
Multifacet Infrastructure (India) Limited ('Multifacet') has made an
application to Registrar of Companies on 21st March, 2016 for strike
off under fast track exit mode under the provision of Section 560 of
the Companies Act, 1956. Consequently, the Company has made a provision
for diminution in the value of investment in Multifacet for Rs. 0.05
crores in the year ended 31st March, 2016. The same is disclosed under
"Exceptional items" in the Statement of Profit and Loss.
C. The Company had discontinued the manufacturing activities at its
Bhandup Plant with effect from 5th May, 2014. A "Voluntary Retirement /
Separation Scheme" along with an alternate option of relocation to
other factories/establishments of the Company was offered to all the
workmen at the plant in the month of April, 2014. All workmen had
accepted either the Voluntary Retirement/ Separation Scheme or
relocation to another factory/establishment of the Company. The
liability on account of the above amounting to Rs. 25.16 crores was
recognized and disclosed in "Exceptional Items" in the Statement of
Profit and Loss for the year ended 31st March, 2015.
D. The Company had recognized provision for impairment in respect of
Fixed Assets at Bhandup Plant for an amount of Rs. 2.41 crores in the
previous year. The same was included under "Impairment" in Note 10 and
disclosed in "Exceptional Items" in the Statement of Profit and Loss
for the year ended 31st March, 2015.
E. The Company was carrying a provision of Rs. 14.04 crores in respect
of the diminution in carrying value of its investment in Asian Paints
(International) Limited, Mauritius made in the earlier years. Based on
the assessment of the fair value of the investment as at 31st March,
2015, the provision for diminution was reversed in the previous year.
The same was disclosed in "Exceptional Items" in the Statement of
Profit and loss for the year ended 31st March, 2015.
NOTE 6 : During the year, based on queries received from certain
shareholders and the Securities Exchange Board of India ('SEBI'), the
Company conducted preliminary internal investigations and discovered
certain irregularities at M/s Sharepro Services (India) Private Limited
('Sharepro'), the Company's erstwhile Registrar and Share Transfer
Agent. Subsequently the Company has filed a criminal complaint against
Sharepro and its employees. Pursuant to the directions issued by SEBI
in its interim order dated 22nd March, 2016, the Company has appointed
an independent external agency to conduct a thorough audit of the
records and systems of Sharepro with respect to the past transactions.
The Company will take appropriate steps based on the findings of the
audit by the independent external agency and in accordance with the
directions of SEBI or any other regulatory authorities.
* Represents actual outflow during the year.
Note 7 : Previous year's figures have been regrouped, reclassified
wherever necessary to correspond with the current year