1. Background and basis of preparation Background
JSW Dulux Limited (formerly known as Akzo Nobel India Limited) was incorporated in India on 12th March 1954 as Indian Explosives Limited. The Company is domiciled in India and is a public company limited by shares. The registered office of the Company is situated in Kolkata (West Bengal). The Company is engaged in the business of manufacturing, trading and selling of paints and related products. The Company’s equity shares are listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The Standalone Financial Statements for the year ended 31st March 2026 were approved by the Board of Directors and authorised for issue on 13th May 2026. The name of the Company has been changed from Akzo Nobel India Limited to JSW Dulux Limited with effect from 11th March 2026. Also refer note 10.
Basis of preparation
(i) Compliance with Ind AS
The Standalone financial statements comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
(ii) Historical cost convention
The Standalone Financial Statements have been prepared on a historical cost convention on a going concern basis, except for the following:
? certain financial assets and financial liabilities are measured at fair value.
? defined benefit plans - plan assets are measured at fair value.
? share-based payments.
(iii) New and amended standards adopted by the Company
The Ministry of Corporate Affairs vide notification dated 7th May 2025 and 13th August 2025 notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 and Companies (Indian Accounting Standards) Second Amendment Rules, 2025, respectively, which amended certain accounting standards (see below), and are effective for annual reporting periods beginning on or after 1st April 2025:
? Classification of liabilities as current or non-current and non-current liabilities with covenants -Amendments to Ind AS 1
The amendment relates to classification of liabilities as current or non-current and non-current liabilities with covenants. In the context of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting date, and instead requires that the said right should exist on the reporting date and have substance. The amendment also introduces guidance on classification of liabilities with covenants. The Company has no impact of these amendments in its classification criteria of current and non current liabilities.
? Supplier finance arrangements - Amendments to Ind AS 7 and Ind AS 107
As a result of the adoption of the amendments to Ind AS 107, the Company provided new disclosures for liabilities under supplier finance arrangements. (Refer note 16.1(d)).
? International tax reform - Pillar Two Model Rules -Amendments to Ind AS 12
The Company is not within the scope of the OECD Pillar Two Model Rules, as Pillar Two legislation has not yet been enacted in any of the jurisdictions in which the Company operates.; and
? Lack of exchangeability - Amendments to Ind AS 21
The amended Ind AS 21 have added requirements to help entities to determine whether a currency is exchangeable into another currency, and the spot exchange rate to use where it is not.
These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
(iv) New standards or amendments not yet adopted
Classification of liabilities as current or non-current and non-current liabilities with covenants - Amendments to Ind AS 1 - This amendment also includes specific provisions that will take effect for reporting periods beginning on or after 1st April 2026, as outlined below.
Under the existing Ind AS 1, where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.
However, the amended requirements stipulate that entities will no longer be permitted to consider lender waivers that are granted after the reporting date but before the financial statements are approved for the purpose of classification of loans. This amendment is required to be applied retrospectively in accordance with Ind AS 8.
The Company does not expect this amendment to have an impact on its operations or financial statements.
2. Critical estimates and judgements
The preparation of Standalone Financial Statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the Standalone Financial Statements.
The areas involving critical estimates and judgements are:
? Useful life of property, plant and equipment (Refer note 3.1)
? Provision for employee benefits and fair value of plan assets (Refer note 35)
? Tax litigations/claims (Refer note 27)
? Customer incentives (Refer note 18)
? Allowance for doubtful debts (Loss allowance on trade receivables) (Refer note 5.4)
? Inventory obsolescence (Refer note 8)
Estimates and judgements are continually evaluated.
They are based on historical experience and other factors including expectation of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
3.1 Property, plant and equipment Accounting policy
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives as prescribed in Schedule II of the Companies Act, 2013 except in respect of the below mentioned assets where useful life is determined through technical evaluation and is different than those prescribed in Schedule II of the Companies Act, 2013.
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Particulars
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Estimated Useful Life (in Years)
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Buildings
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10-60
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Plant and equipment
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10-15
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Furniture and fixtures
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3-10
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Motor vehicles
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5-7
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The residual values are not more than 5% of the original cost of the assets. Depreciation methods, useful lives and residual values are reviewed at least at each financial year end.
Leasehold improvements are amortised over the shorter of useful life and the period of lease including the optional period, if any, available to the Company, where it is reasonably certain at the inception of lease that such option would be exercised by the Company.
See note 40 (l) and 40 (x) for the other accounting policies relevant to property, plant and equipment and note 40 (n) for the Company’s policy regarding impairment.
(a) The Company had acquired revaluation reserve attributable to certain land as part of amalgamation done with various companies in the previous periods.
(b) This represents impairment loss on account of property, plant and equipment rendered unusable pursuant to the slump sale (at net book value) amounting to H 79 (Gross Carrying Amount H 159, Accumulated Depreciation H 80). Refer note 26.
(c) As at 31st March 2025, the Company has classified property, plant and equipment (PPE) amounting to H 945 (Gross Carrying Amount H 2,278, Accumulated Depreciation H 1,333) as held for sale. The Company transferred total assets under the slump sale of the Powder Coatings Business division and the International Research Center division amounting to H 1,634 (Gross Carrying Amount H 2,987, Accumulated Depreciation of H 1,353), which includes additional assets transferred during the period amounting to H 689 (Gross Carrying Amount H 709, Accumulated Depreciation H 20).
(d) Refer note 28 for disclosure of contractual commitments for the acquisition of property, plant and equipment.
(e) The name of the Company has been changed from Akzo Nobel India Limited to JSW Dulux Limited with effect from 11th March 2026. As a result, the title deeds are still held in the erstwhile name of the Company.
Significant Estimates: The estimated useful lives of property, plant and equipment are based on a number of factors including the effects of obsolescence, demand, competition, internal assessment of user experience and other economic factors (such as the stability of the industry, and known technological advances) and the level of maintenance expenditure required to obtain the expected future cash flows from the asset. The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
Note 3.2 Right-of-use assets and Lease liabilities Accounting policy
(a) The Company leases various lands, buildings, warehouses and vehicles. Rental contracts are typically made for fixed periods of 2 years to 12 years except in case of leasehold land where it is upto 99 years, but may have extension options as described in (iv) below.
(b) Contracts may contain both lease and non-lease components. The Company allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Company is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component.
(c) Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor.
(d) The lease payments are discounted using the interest rate implicit in the lease. If the rate cannot be readily determined, which is generally the case for leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
(e) To determine the incremental borrowing rate, the Company obtains the general purpose borrowing rates and makes necessary adjustments specific to the lease e.g. lease term, security etc.
(f) Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on straight-line basis.
If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying assets useful life.
(g) Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis as an expense in the Statement of Profit and Loss. Short term leases are the leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture.
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