ANNUAL REPORT 2011- 2012

CONTENTS
14 26 32 36 37 38 39 75 78 79 80 81 118 129
Management Discussion and Analysis Directors’ Report Auditors’ Report Balance Sheet Statement of Profit and Loss Cash Flow Statement Notes to Financial Statements Auditors’ Report on Consolidated Financial Statements Consolidated Balance Sheet Consolidated Statement of Profit and Loss Consolidated Cash Flow Statement Notes to Consolidated Financial Statements Report on Corporate Governance General Shareholder Information Notice

INA DANI Ms. RAMADORAI . SHAH DR.S.directors ASHWIN CHOKSI ASHWIN DANI ABHAY VAKIL K. S.A. ANAND MAHENDRA CHOKSI AMAR VAKIL Mrs. SIVARAM S. TARJANI VAKIL DIPANKAR BASU MAHENDRA SHAH DEEPAK SATWALEKAR R.B.

2012) ABHAY VAKIL P. INA DANI Ms. Chartered Accountants K.S.f.B.M.M. TARJANI VAKIL DIPANKAR BASU MAHENDRA SHAH DEEPAK SATWALEKAR R.A.e.Board of Directors ASHWIN CHOKSI Chairman Audit Committee Ms. MURTY (upto 31st March. TARJANI VAKIL Chairperson Share Transfer Committee ABHAY VAKIL Chairman ASHWIN DANI Vice Chairman DIPANKAR BASU MAHENDRA SHAH ABHAY VAKIL P. 1st April.f. 2012) B S R & ASSOCIATES Chartered Accountants MAHENDRA CHOKSI AMAR VAKIL Mrs. ANAND Managing Director & CEO (w.S. SHAH DR. MURTY Managing Director & CEO (upto 31st March. S. TARJANI VAKIL DEEPAK SATWALEKAR . INA DANI Remuneration Committee DIPANKAR BASU Chairman Chief Financial Officer & Company Secretary JAYESH MERCHANT Ms.e. RAMADORAI K.B. ANAND (w. SIVARAM S. 2012) ASHWIN CHOKSI ASHWIN DANI JAYESH MERCHANT Shareholders / Investors Grievance Committee MAHENDRA SHAH Chairman Auditors SHAH & CO. 1st April. 2012) MAHENDRA CHOKSI Mrs.

despite the price hikes. which caters to the automotive sector. The industrial coatings business of your Company faced a challenging year due to the combined impact of demand slowdown and cost pressures. It is a delight to address you on completion of another eventful and successful year. as a result of which price increases could not be secured. Thus.’s capex cycle. We will continue to invest our resources in taking these initiatives forward.9% in India during the year. impacting its . This could be achieved because of the sustained direction and working as a team at all levels.000 KL per annum. Factors like sticky inflation. This performance is all the more commendable considering that inflation surged to near double digit levels and GDP came down to 6. Matters have been further aggravated due to elevated crude prices. Your Company has always focused on building strengths for the future and continued to invest in building capabilities. consolidated sales of your Company grew by 24. although the growth rates were good. Investments were also made to modernize the field operations by opening new depots and automating the operations at the field locations. Our decorative business in India continued its strong performance with good demand conditions witnessed across regions. The seventh decorative paint plant coming up at Khandala in Maharashtra. weakening rupee and a logjam in policy making. monomers. which was commissioned in April 2010 with an initial capacity of 150. Over the years. your Company has continuously invested in expanding its distribution reach and product range and today we have the ability to provide the most diverse and rich product mix to our customers across the country. volatility and uncertainty have become the “new normal” and the FY 2011-12 has proved to be no different. sustaining margins was a challenge because of spiraling inflation across key commodities and chemicals like titanium dioxide. affecting India Inc. Prices across our product range had to be increased in view of the inflationary pressures.7% and profits registered a growth of 17.3% mainly on the back of buoyant domestic demand. However. ensure customer satisfaction and enhance supply chain capabilities for future. interest rates and political un-certainties have been a concern for the country during the year. Capacity building for the future is well on track. Your Company’s joint venture Asian PPG Industries Ltd. using the latest technologies. Despite the global volatile environment.000 KL per annum. The concerns in Euro zone and Middle East remain unresolved and the US economy is still not out of the woods. is well on schedule and we expect to commission it by the fourth quarter of FY 2012-13 with an initial capacity of 300. has now been expanded to 200. Major thrust areas were identified during FY 2011-12 to secure growth. (APPG). it was encouraging to witness a fairly robust demand environment. etc. Rohtak plant.000 KL per annum. Over the last few years. was hit by deceleration of growth in the automotive industry.chairman’s letter Dear Shareholders.

However. The industrial coatings business might have to face these challenges in the current year as well. It is these values which have shaped the character of your organization and helped in building wealth for all stakeholders. While these challenges have hampered growth and margins were under pressure due to inflationary environment. Going forward. the corporate governance structure of your Company has only got stronger. While. We have always anticipated changes and adapted ourselves to the environment without compromising on our core values. policy makers are expected to support populist schemes and provide liquidity in the hands of voters. Ashwin Choksi . integrity and transparency and would continue to do so. customers and employees. We wish him all the best for future and welcome our new Managing Director & CEO Shri K B S Anand. For the first time. I am confident that your Company will prove its mettle in such a dynamic business environment as we have done in the past. the founding families of your Company decided to place your Company in the hands of a professional manager by appointing Shri P M Murty its Managing Director & CEO in 2009. These developments point towards an optimistic outlook on domestic consumer demand in the medium term. It will leverage PPG’s technology and global customer relationships while continuing to build on your Company’s customer base. gold etc). As we have continued to grow and develop our businesses. I am happy to state that your Company has done really well under his leadership in these last three years as we continued on our journey to deliver growth and create long term value for the shareholders. your Company had announced its plan to enhance the long standing relationship with PPG Industries Inc. Warm regards. We have always benchmarked our internal controls and corporate governance practices with the best in the world.margins. Despite all the macro pressures. distribution channels and local relationships. Going ahead I am confident of this continued support. rural India is expected to continue to provide the much needed support to growth. which I strongly believe to be behind the enviable position that we have achieved over the years. As the country goes to polls in 2014. the domestic consumer spending has remained fairly strong. While consumer demand is expected to remain strong. the situation continues to be challenging in most of the other geographies. Environment and Education under our Corporate Social Responsibility (CSR) program. These coupled with buoyant agricultural production and increase in minimum support prices have kept the rural consumption strong. Yours sincerely. This new joint venture will start operations once all necessary approvals and clearances are obtained. Your Company believes in growth with a human face and continues to remain committed towards various initiatives in the areas of Health Care. This has led to a continued support for your Company from all stakeholders including our shareholders. Your Company operates in multiple geographies and each of this geography has a challenging business environment. During the previous year. Rural India has continued to grow on back of the trickle down effect of social sector spending and appreciation and liquidation of latent assets (land. manufacturing footprint. The Consolidated Net Revenue from Operations have grown from ` 5463 crores in FY 2008-09 to ` 9632 crores in FY 2011-12 while the profits have grown from ` 398 crores to ` 989 crores. I take this opportunity to thank Shri P M Murty for his contribution to your Company over the last four decades. It was a challenging year for the International Business. RBI has signaled a movement towards soft policy by cutting Cash Reserve Ratio and interest rates. business partners.. your Company has done well to maintain profitability of the international operations. This demonstrates that family promoters and professionals working together can achieve good results for the shareholders. powder coatings and light industrial coatings market. business environment will be volatile and uncertain due to the global and domestic challenges discussed earlier. with multiple state elections before that. Your Company has always believed and practiced high standards of professionalism. I am confident that your Company will scale new heights under his able leadership. With inflation showing signs of easing and growth rates under pressure. good growth was seen in the Asian markets owing to strong domestic demand. Caribbean is still reeling under slowdown while the Middle East region continues to be affected by political upheavals. USA by forming a new 50:50 joint venture for servicing the protective.

000 crores .2 crores Consolidated Gross Revenue crosses ` 10.2% to ` 1493.7% to ` 7964.000 KL per annum Dividend The Board of Directors have recommended a final dividend of ` 30.2 crores EBITDA Increased by 15.2 crores Capacity Expansion Expansion of Rohtak plant in Haryana by 50.2 crores EBITDA Increased by 21.000 KL per annum to 2.7% to ` 9632.8% to ` 1616.highlights Standalone Net Revenue from Operations Increased by 25.00.5 per share (Total Dividend for the Year will be ` 40 per share) Group Net Revenue from Operations Increased by 24.

3 95.1 170.0 24.8 2.6 532.1 908.003.4 3.07:1 Debt-Equity Ratio 31.9 Profit Before Tax and Exceptional item 17.4 3.032 49.8 25.7 3.9 526.956.7 1.3 Return on average net worth (RONW) (%) 42.681 48.5 774.7 70.9 2.2 703.09: 1 11.7 4.6 22.3 Overheads 23.8 563.8 234.964.1 125.4 95.2 29.1 43.4 0.6 (6.8 95.5 0.7 274.777.461.840.9 1.1 2.238 80.034.8) 231.9 95.879.5 337.9 12.5 482.606.391.336 28.7 1.6 274.4 0.062.914 * #15.0 1.338.6 147.2 22.088.537.5 943.0 ** 55.6 1.5 2.9 3.2 1.7 346.2 616.6 3.0 2.2 551.104.6 48.17: 1 7.7 13.9 1.0 24.0 77.3 95.7 24.8 60.640 59.884.426.4 242.2 Net Revenue from Operations^ 25.1 % to Net Revenue 21.202.5 88.324.260 49.04: 1 19.Earnings Per Share ** On increased Capital.5 14.7 1.4 57.4 51.8 1.5 460.8 28.2) 270.2 Borrowings 1.1 57.2 147.2 21.7 58.22:1 2.5 258.5 386.8 175.5 142.8 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 1.1 32.739 41.5 334.382 48. @ Includes Investments in Liquid Mutual Funds which is part of cash and cash equivalents.1 186.539 95.6 25.1 807.2 319.728.6 55.5 223.7 0.9 998.806.9 1.0 2.958.7 0.3 12.1 23.7 21.9 39.9 Reserves and Surplus 80.493.3 17.0 6.5 14.7 270.119 #14.362.1 % to Net Revenue 958.8 10.3 1.8 110.4 10.9 280.5 615.9 1.5 65.8 60.103.4 (4.8 173.457 RESULTS FOR THE FINANCIAL YEAR 2011-2012 REVENUE ACCOUNT 9.1 14.4 57.6 1.9 (33.9 74.336.5 23.4 28.532.4 5.9 13.0 42.7 27.232.5 125.9 1.8 Deferred Tax Liability (Net) 168.611.937 Number of Employees 60.0 64.2 16.2 422.0 205.4 Book Value (`) OTHER INFORMATION 4.5 344.5 1.0 238.1 52.2 412.6 366.2 8.3 3.4 4.0 64.6) 303.5 26.5 14.7 539.8 320.178 * 19.510 39.122.593 95.275.4 4.2 3.2 103.0 96.13: 1 2.4 36.4 48.2 55.550 49.064.7 563.134.9 17.751 * 18.9 648.9 45.0 14.8 45.6 47. number of employees.820 44. .128.660.2 16.7 26.3 Gross Revenue 7.3 4.280 *80.03:1 24.1 29.6 0.0 15.868 49.8 3.8 3.7 736.8 619.122.290 * 37.7 % to Net Revenue 1.9 0.3 1.1 20.9 57.1 4.4 % to Net Revenue 1.9) 545.9 68.5 13. ^ Figures have been regrouped as per Revised Schedule VI to the Companies Act.5 711.646.15:1 6.3 13.9 4.7 1.2 325.2 58.3 48.7 58.5 44.2 1.15: 1 3.9 832.4 94.7 14.153.8 3.079.7 2.9 60.9 52.6 1.698.5 94.1 Materials Cost 59.8 Finance Costs 99.9 435.3 43.4 2.351.074 95.7 Growth Rates (%) 4.5 21.3 6.096.3 35.4 8.278.797 5.7 31.362.4 75.537 Number of Shareholders * EPS calculated on Net Profit after exceptional item # EPS is calculated after adjusting for Bonus issue and the reduction of capital on account of merger of Pentasia Investments Limited in accordance with Accounting Standard (AS 20) .4 58.4 ** 85.9 Earnings Per Share (`) 400.5 Depreciation 1.6 272.3 47.0 26.0 31. 1956.5 5.0 59.0 74.5 5.ten year review (standalone) (` in Crores except per share data.2 Operating Profit (EBITDA) 30.3 30.3 18.6 31.0 Dividend (%) 259.8 362.327 51.1 324.8 0.8 15.4 412.5 22.3 17.5 1.9 Fixed Assets 913.0 6.0 21.356 53. number of shareholders and ratios) 2010-2011 7.5 91.0 162.9 476.9 223.056 Market Capitalisation as at 31 st March PER SHARE DATA 99.4 130.827.0) (5.9 (2.7 775.2 15.0 95.8 1.360.8 Investments@ 0.2 62.4 375.1 412.1 95.753.0 14.9 Share Capital 2.8 0.1 464.0 114.025.924 47.9 CAPITAL ACCOUNT 95.573 78.4 Profit After Tax Return on average capital employeed (ROCE) (%) 59.4 Growth Rates (%) Exceptional item Profit Before Tax and after Exceptional item 1.4 291.07: 1 7.8 12.8 47.

EBITDA & EBITDA Margins (%) 8000 7000 6000 ` in crores 18% 14% 4279 3427 5134 22% 6336 19% 19% 7964 25% 20% 15% 10% Net Revenue from Operations EBITDA EBITDA Margins (%) 5000 4000 3000 2000 1154 1232 1493 5% 0 1000 0 615 619 2007-08 2008-09 2009-10 2010-11 2011-12 Profit Before Tax & Profit After Tax 1500 1200 ` in crores 1.standalone Net Revenue from Operations.performance highlights .122 958 1.105 900 600 300 0 563 375 546 362 775 775 2007-08 2008-09 2009-10 2010-11 2011-12 .363 PBT after exceptional items PAT 1.

510 7.539 2009-10 2010-11 2011-12 .097 800 633 600 400 200 0 2007-08 500 2008-09 2009-10 2010-11 2011-12 Market Capitalisation 35000 31.056 30000 25000 ` in crores 24.238 19.141 1.Net Cash Generated from Operations 1200 1000 ` in crores 1.593 20000 15000 10000 5000 0 2007-08 2008-09 11.153 1.

2 9 1. Earnings per share and Dividend pay-out ratio 100 90 80 70 60 in ` 39% 51% 54% 78 46% 81 47% 100 60% 50% 40% 30% Dividend per share EPS before Exceptional item Dividend payout ratio (Including dividend distribution tax) 50 40 30 20 10 0 2007-08 2008-09 2009-10 2010-11 2011-12 17 17.3 0.17 1.0 6 5 4 3 2 1 600 429 400 200 0 2007-08 2008-09 2009-10 2010-11 2011-12 0 Employees at the year end and Turnover per Employee 5400 5000 4600 4200 3800 3400 3000 2007-08 2008-09 2009-10 2010-11 2011-12 0.5 1.9 1.00 4260 4382 1.9 7.36 4640 1.8 1.0 No.057 7.9 0.61 4937 1.Dividend per share.2 0.6 0.87 3924 1. of Employees Turnover per Employee (` in Crores) No.5 39 38 32 27 40 20% 10% 0 Net Fixed Assets and Asset Turnover Ratio 1200 1000 800 623 8.0 6. of Employees .009 Net Fixed Assets (excluding capital work-in-progress) 8 7 Asset Turnover Ratio ` in crores 707 6.

27.7.833 59% 80% 70% 60% 50% 40% 30% 20% 10% Average Capital Employed Return on Average Capital Employed 1500 1.397 1000 500 0 946 2007-08 2008-09 2009-10 2010-11 2011-12 0 Percentage of Paint Sales contribution of each region to overall international operations for FY 2011-12 Asia .2% Middle East .Average Capital Employed and Return on Average Capital Employed 2500 2000 ` in crores 61% 51% 78% 2.1% Caribbean .50.096 1.14.8% .349 62% 1.9% South Pacific .

key indian product portfolio exteriors enamels wood finishes interiors .

key international product portfolio berger scib (Egypt) middle east berger apco Taubmans caribbean south pacific .

Sticky inflation also led to a tight monetary policy which moderated growth during the course of the year. Shri P M Murty for what your Company has achieved. Raw material inflation caused pressures on the margins of international units as well. The sovereign debt crisis in Europe remains unresolved. USA saw a downgrade for the first time in the recent history and Middle East continues to face socio-political tensions. inflation. In this uncertain environment. The rupee felt this pressure and breached the 50 level mark during the year. sovereign debt crisis in the European countries and weak recovery hopes for other developed economies threatened to derail the global economic environment at the beginning of the year.5% on the back of strong domestic demand and a thrust on Infrastructure development. Amidst all these. The Asian markets fared well owing to strong domestic demand conditions. The performance of your Company during FY 2011-12 is detailed below: 1.. after remaining subdued for a better part of the year. turned out to be otherwise. We have a lot to thank the outgoing Managing Director & CEO. Expectedly. The set of challenges which we began with either intensified or are still to be addressed. The ground realities in India have not met the expectations either. Inflation has started showing signs of easing and RBI has responded by cutting CRR and interest rates. Although disappointing. Additionally. The impact was largely felt on the industrial sector whereas agriculture and services continued to do well.4% registered in previous year. The country is expected to have grown at 6.management discussion and analysis The year began with several challenges both on the domestic and international fronts. India had its own set of challenges viz. This in itself is an indication of the pressures being faced on the domestic front. It has presence in 17 countries with 24 paint manufacturing facilities. some of the indices have started looking up. We are indeed grateful to him for his leadership and guidance. crude oil prices have remained firm during the year leading to commodity inflation across the board. Reality. for quite some time now. The macro business environment during the year was characterized by uncertainty and volatility. Caribbean and South Pacific Islands through its subsidiaries and joint ventures. Especially in automotive coatings. Margins in the industry were under pressure owing to surging inflation in input prices seen during the year. the markets didn’t perform as was expected initially due to surging fuel prices and tightening interest rates. aggravating the concerns for importers. there was a sense of optimism and hope that the environment would recover sooner than later and it was expected that the Indian economy would grow at around 8. It remains to be seen how the economy responds to these measures.9% during the year against a growth of 8. The world has been trying to solve these problems or at least avoid any further aggravation. 14 . Industrial Paints business faced pressures due to the slowdown witnessed in the Industrial sector. however. signaling a softer regime going forward. your Company has made the best use of its resources and abilities to come out stronger from the tides. International business did well in spite of the regional turmoil in Middle East and subdued economic conditions in the Caribbean region. The upheaval in Middle East. interest rates and regulatory uncertainties. However. His contribution to your Company during his tenure needs no reiteration. PRODUCTS AND MARKETS Your Company operates in Decorative coatings and Industrial coatings segments across India and in the geographies of Asia. however. the fact that the country was battling near double digit inflation (mainly due to global cost push and agricultural supply constraints) cannot be ignored. Middle East. The Paint industry volume growth in India during FY 2011-12 was strong across regions. albeit a bit lower than initial expectations.

Your Company continued to expand its sales network. been launched are a step in this direction. Strong volume and value growth was seen in the segment during FY 2011-12. Going forward. The strategies followed by your Company have enabled it to grow satisfactorily in spite of stiff competition. 15 . Fortunately. ensure customer satisfaction. The ColourWorld reach has now grown to over 21000 dealers. The Exterior Emulsion category has strengthened with the inclusion of Apex Ultima and textured finishes in the portfolio. the interior emulsion category continued to grow well on the back of good marketing work done in Royale (the new Teflon co-branding and the launch of the Shyne variant). supply chain capability and ‘Colour Scheme PRO’ (Mobile Application) capability building for the future during FY 2011-12. gross margins dropped during the year. Tractor Emulsion continues to grow extremely well. the substantial increases in prices did not affect demand which continued to be fairly robust. Overall. Innovative marketing initiatives are being undertaken to increase consumer connect and awareness on painting. Asian Wall Putty has also been growing well in the recent past. thereby. Despite five price increases with an overall impact in excess of 12%. The key feature of FY 2011-12 was the high level of inflation for the second consecutive year. The concept would be expanded significantly over the next three years. thus steadily reducing the dependence on enamels and distempers. The 43 Colour Idea stores that have been opened so far continue to be an area of consumer delight. margins are likely to remain under pressure in light of the uncertainty in commodity and other input prices. Shop-boy and dealer training and other Critical Retailer’s specific initiatives are also being undertaken vigorously. Major thrust areas were identified to secure growth. Delhi The trend of high growth in emulsions and exteriors witnessed in recent years continued. Samplers and Foresites service continue to receive a good response. the product mix offered by your Company is getting richer on account of good growth rates seen in emulsions. The Signature stores in Mumbai and Delhi (which was opened during the year) continue to attract a large number of consumers who respond very positively to the experience.DECORATIVE PAINTS INDIA Decorative Paints contribute more than 75% of the Indian Paints market. Your Company continues to do well in the market place and has focused on defending the position earned over the years. becoming the preferred Economy Emulsion in the market. During FY 2011-12. This helped in registering a better mix and higher growth rates. Your Company offers the broadest mix in the product portfolio to the customers and has successfully established its strength in the premium segment in the last few years. The ‘Happy Painting Guide’ and ‘Colour Scheme PRO’ (Mobile application enabling consumers to create colour combinations) that have Signature Store at Connaught Place.

Bangladesh was impacted by sharp currency depreciation and a liquidity crunch in the market that has pushed up interest rates. increasing the number of dealer tinting systems. During the year.5 crores during the previous year. Profit after tax for the overseas operations of the group during the year is ` 72.8 crores) and royalty received during the year from overseas subsidiaries amounts to ` 15. Sharp focus was accorded to further enhance safety standards in all subsidiaries. The dividend received during the year amounts to US$ 3.3 crores as compared to ` 87. This new model is expected to facilitate higher service levels with lower levels of inventory going forward. increasing exports. The impact of inflation was mitigated to some extent by formulation re-engineering. declared its maiden dividend. expanding the dealer network. Mauritius. your Company needs to invest in capability to effectively implement its growth strategies. focus on protective and industrial coatings segments and improving service level to minimize loss of sale due to stock outs.000 KL in fourth quarter of FY 2012-13. Material prices during the year saw an inflationary trend and profitability was impacted due to inability to take price increases commensurate with increase in material prices.2 crores. The capacity at Rohtak has been increased from 150.000 KL per annum and this capacity is now available from the first quarter of FY 2012-13. through initiatives to improve customer centricity.9 crores during the previous year.000 KL in its second year of operation. Work on the construction of the 7th Decorative paint plant at Khandala (Maharashtra) is progressing steadily and is on course for commissioning a capacity of 300. The revenue from paint sales of the overseas operations of the group for the year is ` 1138. introduction of new products.6 crores as compared to ` 974. During the year. The political turmoil in Egypt and Bahrain continued and impacted demand. INTERNATIONAL OPERATIONS FY 2011-12 was a challenging year for the overseas operations of the group. a 100% subsidiary of your Company. Most of the international markets where your Company operates continued to be impacted by difficult market conditions. Rohtak plant (Haryana) produced 125. The focus in the international operations of the group during the year was on strengthening position in the market place 16 .Khandala plant under construction With volumes doubling nearly every five years. economies of scale in purchasing and reducing losses in manufacturing. All these steps coupled with tight control on expenses and capital employed have helped the international operations of the group perform satisfactorily despite difficult market conditions.000 KL to 200. the subsidiaries in UAE and Trinidad were certified for ISO 14001. Asian Paints International Limited. all plants with the exception of the Bhandup Plant would have operating Distribution Centres allowing complete migration to the new Distribution Model.4 million (equivalent to ` 15. Construction of the Distribution Centre at Patancheru Plant is underway and by the end of FY 2012-13.

Political turmoil in Bahrain and Egypt has further impacted the business environment in these countries.2 crores for the year. particularly in UAE. Nepal. Adjusted for exchange rate impact. This is expected to be completed in FY 2012-13. However. the revenue from paint sales has increased by 28. The PBIT for the region is ` 24. revenue from paint sales has increased by 20. Tonga and Vanuatu Bangladesh has received environmental clearance for increasing its plant manufacturing capacity to 24000 KL per annum. In Nepal. most OEMs posted decent growth in the last quarter of the year aided by strong pre-budget demand from customers. the revenue from paint sales has increased by 7. in sharp contrast with 26. Middle East Region During the year under review.7% growth in builds witnessed in FY 2010-11. Solomon Islands. All the subsidiaries in the region have made profit.9% to ` 90. Your Company has taken series of internal measures to improve operational efficiencies and minimize the impact on margins due 17 .8 crores. INDUSTRIAL COATINGS Automotive Coatings: Asian PPG Industries Limited (APPG) APPG. slashing demand. coupled with state of emergency declared in Jamaica and Trinidad impacted demand. The group operates in the following geographies: Asia Region During the year under review. Demand conditions in all economies continued to be challenging.0% to ` 314. a subsidiary listed on the Singapore Stock Exchange has decreased by 1% to S$ 107 million (equivalent to ` 413 crores).5 crores for the year.0 crores. Sri Lanka and Singapore Fiji.8 crores from ` 156. Trinidad and Tobago Egypt.7% growth during FY 2011-12. Rising fuel prices and a series of interest rate hikes drove up the price of ownership. Middle East Asia South Pacific The region wise performance is detailed below: Caribbean Region During the year under review. Jamaica. was formed in the year 1997. Bahrain and UAE Bangladesh. PBIT for the region is ` 61.6 crores from ` 75. all the other subsidiaries in the region have earned profit after tax.4 crores from ` 515. the revenue from paint sales has increased by 9. Adjusted for exchange rate impact. OEM. The passenger vehicle segment registered a mere 4. The Middle East region is the largest operating region for the group outside India. Adjusted for exchange rate impact. the revenue from paint sales has increased by 12. All the subsidiaries in the region have earned profit after tax. capacity expansion to 20000 KL per annum is under way. South Pacific Region During the year under review.7%. The expansion is expected to be completed in FY 2013-14.1% to ` 578. the revenue from paint sales has increased by 8. revenue from paint sales has increased by 31. Continuing economic slowdown in all the Caribbean economies.The revenue from paint sales of Berger International Limited.3 crores. the 50:50 Joint Venture (JV) with PPG Industries Inc. the revenue from paint sales has increased by 3. PBIT (profit before interest and tax) for the region is ` 7..3%. In the region. The PBIT for the region is ` 12.5% to ` 171. APPG is the second largest automotive coatings supplier in the country. for manufacturing Automotive.6 crores for the year. Except UAE.7 crores from ` 240. The year also saw high inflation which put cost pressures on the Industry and your Company.9 crores. Nepal and Sri Lanka have earned profit after tax and Singapore and Bangladesh have reported a loss.6 crores for the year. Samoa.9%. The region now contributes 50% of the revenue from overseas operations. Refinish and certain other Industrial Coatings.0%. Oman. Adjusted for exchange rate impact. Region Caribbean Countries Barbados.

volatile foreign exchange. Your Company will be responsible for day to day management of this new JV. was formed to carry on the Non-Auto Industrial business including Powder Coatings business of your Company.5 crores in the previous year with a growth of 15. the year ahead appears challenging due to the challenging market conditions. Despite the long term positive growth prospects in the Indian economy. The consolidated revenue from operations was ` 687. As a first step to the JV formation. Asian Paints PPG Limited (APPL) was also established during the year with PPG. USA (PPG) last year to further the long standing and successful relationship with PPG. your Company was able to pass on the cost increases to a certain extent. In order to meet the industry requirements. PPG Industries. As announced earlier.7%. The profit after tax dropped to ` 26. PPG will be responsible for day to day management of this JV. A revised Composite Scheme for Merger and Demerger encompassing all businesses of companies. During the year. The amalgamation process is currently in progress and the regulatory clearance for this new structure for Industrial operations is likely to be obtained by the second quarter of FY 2012-13. It will leverage the significant expertise.. 18 . the existing 50:50 JV in the area of automotive coatings. reduced inventory has been the agenda for supply chain function.3 crores and the profit after tax was ` 26. The Composite Scheme for Merger and Demerger under Sections 391 – 394 of the Companies Act. will now additionally cover marine coatings.8 crores. market presence. The JV’s requirements will continue to be produced by these industrial plants under a tolling arrangement. 2012.to input price pressures.9 crores. As a part of the JV arrangement. Total revenue from operations increased to ` 659. as originally envisaged.2 crores from ` 32. operational excellence. This has impacted the bottom line growth for your Company during the year. Capacity enhancements. increased competition. passing on the cost impact continued to be a challenge. inflation and rising crude oil prices. The second 50:50 JV. this JV will aggressively promote the industrial coatings and powder coatings products (earlier serviced by your Company through its Growth Business unit and its 100% subsidiary Asian Paints Industrial Coatings Limited (APICL)) in India. high interest rates. AP Coatings Limited (100% owned subsidiary of your Company) was formed to carry on the industrial business of your Company as well as the business of APICL till the formation of the new JV. AP Coatings alongwith an Indian subsidiary of PPG would merge into APPG and thereafter. Industrial paint Plant at Taloja and APICL’s two powder coating plants at Sarigam and Baddi will continue to be a part of your Company and APICL respectively and will not form a part of the new JV. USA decided to restructure its operations in India prior to the proposed merger/demerger due to which the petitions filed in the Hon’ble High Court of Judicature of Bombay and Madras have been withdrawn. higher service delivery. and channel access of your Company in the domestic market with the considerable global scale and technology of PPG. 1956 and other applicable provisions was filed with the Hon’ble High Court of Judicature of Bombay and Hon’ble High Court of Judicature of Madras in September 2011 for the arrangement. capacity expansion at the Sriperumbudur plant was embarked upon during the year. As a part of the arrangement. consumer packaging coatings and other liquid industrial coatings segments. in the Auto OEM business. This will be helpful in catering to future customer demands.1 crores from ` 569.. a new Company named AP Coatings Limited (100% subsidiary of your Company) AP COATINGS LIMITED As mentioned earlier. However. certain businesses from APPG would demerge into APPL. NON-AUTO INDUSTRIAL COATINGS: Partnership with PPG Your Company had initiated the process of forming a second 50:50 Joint Venture with PPG Industries Inc. has been filed with the Hon’ble High Court of Judicature of Bombay in February. APPG. In the Auto Refinish business. Inc.

albeit. Your Company focused on the high-end Protective Coatings business. The two Powder Coatings’ manufacturing facilities located at Sarigam in Gujarat and Baddi in Himachal Pradesh. the demand position in industrial coatings continued to be relatively weak. manufactured at Cuddalore. as a large proportion of the raw materials in these businesses are imported. (2) Cycle Track. and inability to pass on price increases. High borrowing costs and poor liquidity in the market also contributed to a slow down in the industrial projects business. The Powder Coatings and Road Marking Coatings businesses were significantly affected by the weakening rupee in the last two quarters. operated satisfactorily in meeting market requirements. Overall. Your Company was able to obtain price increases from customers. resulting in a substantial improvement in the product mix and weighted average selling prices. with the average overall inflation in material costs at around 20% for the financial year. 52% of the Pentaerythritol produced by your Company during FY 2011-12 was transferred for internal consumption. manufactured at Ankleshwar. Both crude prices and the exchange rate will play a significant role in determining the input costs.1 2 3 4 Coatings for: (1) Airports. (3) Highways and (4) Race Circuit The major product segments handled by AP Coatings Limited includes      Protective Coatings General Industrial Coatings Road Marking Coatings Floor Coatings Powder Coatings The year ahead looks challenging. The plant operations were stable and the plant achieved the highest ever production volumes during the year. with a delay. were set up as backward integration initiatives in the late eighties. However. since cost of credit is expected to come down in future. Inflation coupled with relatively weak demand conditions. Safe guard duty at the rate of 10% on imports from all countries was imposed from January 2012. Prices of key raw materials moved up during the year. with no respite expected in the increasing input costs. demand conditions are likely to improve. Profits from the Phthalic Anhydride business were in line with expectations. Raw Material prices increased significantly in the first half of the year. affected margins adversely. resulting in an increase in material costs. Gujarat. Rising raw material costs pushed Phthalic Anhydride prices to high levels. 19 . intense competition. During FY 2011-12. and the Industrial Liquid Paints’ plant at Taloja in Maharashtra. Phthalic Anhydride. Production at plant and profits from the business were in line with expectations. 60% of Phthalic Anhydride produced was transferred for internal consumption. OTHERS Your Company’s two chemicals businesses. Tamil Nadu. and Pentaerythritol. primarily to cater to the in-house demand for these chemicals.

HEALTH AND SAFETY Your Company has always been environmentally conscious and believes in resource conservation. all your Company’s seven paint plants and the two chemical plants have the ISO 14001 environmental certification. Khandala plant construction has begun and is progressing at fast pace.Direct GHG emissions (due to fuel consumption) and Scope 2 . Your Company also endeavors to educate its customers and the public on safe use of its products. Process unit for Water recovery from Waste-Water installed at Rohtak Plant Priority and attention is given to the health and safety of employees. Your Company focuses on pollution abatement. Your Company has institutionalized a mechanism to monitor GHGs emissions across all business units as per Green House Gas (GHG) protocol [A Corporate Accounting and Reporting Standard by World Business Council for Sustainable Development]. rainwater harvesting and green belt at the periphery of the premises. The Rohtak plant of your Company has implemented environmental management system and received the ISO 14001 certification. resource optimization and waste minimization. and one chemical plant are ‘Zero Industrial Discharge’ plants with rain water harvesting capabilities. water conservation. The policy entails ensuring compliance to statutory EHS requirements as the minimum performance standard and commitment to go beyond and adopt stricter standards wherever appropriate. which leads to sustainable development. Environment. GHGs emissions monitoring has been categorised under Scope 1 . After achieving ‘Zero Discharge’ of industrial effluent.Indirect GHG emissions due to electricity consumption 20 . ‘Zero Discharge’ of effluents. ENVIRONMENT. Health and Safety (EHS) is one of the primary values for your Company. All the seven paint plants Your Company also appreciates the need to monitor and reduce emission of Green House Gases (GHGs) which are responsible for global warming and climate change. With this. Training is imparted to all the employees to work as per the prescribed procedures meeting all EHS requirements. The design of the Khandala plant has world class safety facilities. minimization of waste through reduction at source and recycle/reuse has been a key focus area. This has resulted in reduction in specific generation of effluents and solid waste.2.

(electricity bought from power generation companies) over which your Company has got direct control. Your Company has focused its efforts on enhancing energy efficiency in all its operations, right from the design of new manufacturing facilities. Your Company is participating in Carbon Disclosure Project (CDP) for disclosing information on carbon emissions.

‘Inclusive participation and Inclusive growth’ is the core of any peaceful Industrial Relation. Building and working on comprehensive employee relations agenda has been an area of continued focus in your Company. Accordingly, initiatives around Employee Relations and Engagement were taken up across all major manufacturing units. The formation of a new JV in the industrial business involved HR integration which included developing organization structure and policies to support the independent entity. A repertoire of courses available through ‘e-learning’ is gaining momentum in your Company which includes partnerships with reputed global organizations like Harvard Business Publishing and Skillsoft. These have received encouraging feedback from employees in your Company.

3. HUMAN RESOURCES
FY 2011-12 has been a year of consolidation for Human Resource function of your Company. Several initiatives, which began in the previous year, started taking shape this year. Learnscape, People Review process and Employee Engagement are few such initiatives where noticeable consolidation over last year’s work were seen. While attracting and retaining talent continues to be a common challenge across industries in last few years, campus recruitment remains the most important source of getting right talent for your Company. Therefore, in order to further improve your Company’s brand image at select campuses, initiatives towards increased industry-academia interface were focused upon. This in turn resulted in better quality talent attraction from specific campuses for your Company. ‘Customers’ are at the center of external interface, similarly, ‘employees’ are the center of internal interfaces. In your Company, several initiatives under ‘Voice of Employee’ agenda were taken up for implementation making a good beginning to responding to employee needs.

4. CORPORATE SOCIAL RESPONSIBILITY
Your Company has always been in the forefront of conducting various CSR initiatives for the benefit of the communities wherever it operates. These initiatives primarily revolve around Water Conservation, Healthcare, Education and Elderly Care. Your Company believes that growth in isolation is not enough; it believes in the concept of sustainable growth taking into consideration the society and environment at large. Water Conservation has been one of the key focus areas of your Company for a long time now. Management of Water through Recycling and Reuse has helped in the

CSR initiatives undertaken at various locations

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conservation of this depleting natural resource. The Total Water Management (TWM) Centre located in the premises of your Company’s manufacturing facility at Bhandup, Mumbai has been championing the issue of water conservation. It plays the role of Information and Demonstration centre on water harvesting for the public at large. Various representatives from housing societies, corporates, government bodies and even school and college students have visited the centre to gain a holistic view on water management. Your Company has also participated in various seminars to advocate the cause of saving this fast depleting natural resource. Your Company’s other manufacturing facilities (Tamil at

5. INFORMATION TECHNOLOGY
There are four mega trends in the Information Technology (IT) world, shaping the way information is getting generated and consumed today. These trends are Mobility, Social, Cloud Computing and Consumerization of IT. During FY 2011-12, your Company has explored the impact of these trends and its relevance for your Company and deployed innovative applications around these mega-trends. A third generation cutting edge mobile application for the front line sales force of your Company was developed which will allow the territory officers to manage the dealer network efficiently by providing a 360 degree view of dealers. As this report goes to print, the application and associated devices are being rolled out pan India. Going forward the other customer facing roles of your Company are also planned to be mobile enabled. The relevance of managing online reputation has gained immense significance in today’s world. Your Company has already established its presence on popular social media platforms like Facebook and Twitter. To enable structured management of your Company’s online reputation, a social sentiment analytics tool was proto-typed and developed during FY 2011-12 , which can ‘listen’ to opinions expressed by various consumers about your Company and channel it to the Customer Relationship Management Systems. The three year roadmap that was drawn in FY 2009-10 in the area of Information Management is well underway. The Business Intelligence initiative that was started in early April 2011 has largely achieved its objective of providing a warehouse of information which managers can use to gain valuable insights to manage key performance indicators at work. This is expected to improve the decision making capability of the managerial cadres significantly. With this framework your Company is poised to leverage the technology trends in the area of in-memory analytics to provide even further insights into market trends and consumer behavior. To improve the overall resiliency of the IT systems, a three pronged approach has been adopted to improve information security of various enterprise systems to global

Ankleshwar

(Gujarat),

Sriperumbudur

Nadu),

Patancheru (Andhra Pradesh), Kasna (Uttar Pradesh) and Rohtak (Haryana) have been doing their bit to provide healthcare to the elderly in the villages around the plant. Your Company operates Mobile Medicare Units (MMUs) in association with the NGO Help Age India to provide medical aid to the doorsteps of the needy senior citizens. Blood Donation and Health care camps are conducted on a regular basis for the benefit of the society by all the manufacturing plants of your Company. Education is the foundation of progress and realizing this, most of your Company’s plants are working towards improving health and infrastructure facilities of schools in their vicinity. The Penta Plant located at Cuddalore (Tamil Nadu) has adopted a government higher secondary school in the village of Karaikadu in the nearby area. Maintenance of computers, providing furniture’s and improving the existing sanitation facilities were undertaken by the plant. Additionally, Scholarships are also being provided to the deserving students. The plant at Rohtak was involved in providing filtered water and playground equipments to a primary girl’s school in Baliyana village. At Ankleshwar in Gujarat, your Company is an active member of Ankleshwar Industrial Development Society, a trust which looks after Shree Gattu Vidyalaya, Shree Jayaben Modi Hospital, Mobile Education Van Project and Children’s theatre cum sports complex When the cyclone ‘Thane’ struck Cuddalore and its neighbouring areas, essential provisions were distributed by the Penta plant to the cyclone affected villagers.

22

standards, deploy tools for IT disaster recovery as well as tools that aid in overall IT operations, management and governance. Your Company is also partnering with leading IT vendors to build innovative applications that exploit the nexus of mobility, cloud and consumerization of IT. These will be deployed to solve complex business problems in the coming years.

During the FY 2011-12, technology efforts have been focused on environmentally compliant technologies: 1. 2. 3. 4. Water borne Acrylic Emulsion Water borne Alkyds High solids and Low VOC solvent borne; VOC = Volatile Organic Compounds. The portfolio of projects includes leading edge technology

6. RESEARCH AND DEVELOPMENT
Your Company is executing an integrated strategy for technology development and deployment. The technology function is supporting your Company’s strategy around four missions: technology development, development of substantially new products, productivity improvement and cost reduction.

for strengthening core business and overall capabilities. During FY 2012-13, Emulsions developed from Technology platform programs are expected to represent 20% of current total volume of emulsions. To meet the mid and long term strategic goals, focus will be in the area of developing paints with reduced VOC.

Paint testing being carried out at the Research and Technology centre in Turbhe

23

The audit plans are drawn up based on a structured risk profiling of business activities of your Company and the plans are approved by the Audit Committee. For India. There is risk of the prices not coming down anytime soon. There are risks of growth not picking up in developed countries. Good governance. there are domestic concerns which can challenge the high growth trajectory the country has seen in the recent years. This will enable the business leaders to view the status of audit observations and monitor the risks and implementation of mitigation plans in a real time manner. Going forward this solution will also help 24 . 3. The services of reputed audit firms are hired to draw advantage of external perspective and geographical reach thereby forming an ideal blend to support a value adding assurance framework. operations in depots and plants has been put in place.7. 8. Although the prospects and future of many developing economies including India are brighter today. security of assets and compliance to regulatory requirements. RISK AND OUTLOOK The world today is more uncertain and volatile than anytime before. The culture of self governance and internal control is sustained through varied set of activities including well defined policies and self certification on adherence to the policies and procedures. which can have an impact on the global economic environment. The internal audit function provides assurance to the management on the adequacy and effectiveness of your Company’s risk management. During the year. Any deterioration of conditions in any of these countries can affect the global crude prices. which can have significant impact on prices across the board. inadequate investment in fresh capacities and buoyant demand conditions. service centre and investment of cash and retirement benefit funds have been put in place. track the status of corrective actions and perform online risk assessments. shared producing nations has been fragile for some time now. control and governance processes. Your Company has invested in an online Governance Risk and Compliance platform to report and track statutory compliances. There is increased competition for natural resources and increasingly volatile and uncertain economic as well as a fragile socio-political environment. accuracy of reporting. there are several challenges before the world that needs to be addressed. A framework for ‘Continuous monitoring’ of the BUSINESS RISKS India Costs of key raw materials like Titanium Dioxide have been on rise for some time now due to their relative shortage. sound internal controls and an independent internal audit form the habitat in this environment. Specific risks which can impact the performance of your Company are discussed below: MACRO ENVIRONMENT Overall global economic environment is volatile with the European sovereign crisis still not completely addressed. This ensures that the major financial transactions are reviewed very close to their occurrence. The internal audit department functions independently and consists of qualified and experienced professionals. The following initiatives taken up during the year have helped enrich the control environment in your Company: record internal audit findings. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY Your Company is committed to ensuring an effective internal control environment that provides assurance on the efficiency of operations. To maintain a sustainable growth trajectory and push economy forward the country needs to push forward critical governance reforms which have been pending for long. The socio-political situation in some of the key oil 1. This is done through a combination of data analytics and audit on the field based on the leads generated from such analytics. Concurrent audits of large project spends. the Audit Committee met regularly to review the findings and the corrective actions taken by the business. 2.

sustainable and inclusive growth. International Continuing inflation in input materials has been a cause of concern globally and could continue to impact margins going forward. the outlook for FY 2012-13 is full of opportunities. 25 . However. could directly impact demand.6% for FY 2012-13 is significantly higher than the GDP growth registered in FY 2011-12. Significant depreciation in currency was seen in countries like Jamaica. Egypt and Bangladesh during FY 2011-12. India is regarded as one of the youngest economies in the world with considerable opportunities as a consumer market and manufacturing hub. Although it has reduced during the last quarter of FY 2011-12. as emphasized by the finance minister in his budget speech. which aims at faster. The government has also recognized. it can have an impact on the overall growth and investment climate in the country which might also adversely impact the paint demand. Owing to the weak fiscal scenario. further fall in the local currency vis-a-vis USD is possible in these countries. it has started FY 2012-13 by cutting lending rates by 50 bps. Any further upheavals or volatility in the social and economic situation in Egypt may adversely affect the overall business environment. These factors could put pressure on margins of your Company and force price hikes. currency volatility can have financial implications on your Company. showing signs of optimism. The Rupee was very volatile during FY 2011-12 breaching new lows. There are expectations of further reduction in interest rates during FY 2012-13. Since your Company imports a significant portion of its raw material requirements. Your Company continues to participate in accelerating economic growth and giving customers and stakeholders the benefits of the technology and the values which have been its driving force. if inflation continues to flare and interest rates are not cut down further. Aided by a young demographic profile. This might lead to overall increase in costs. there are risks that Inflation might inch up again during the second half of FY 2012-13. if any. that there is a need to accelerate the pace of reforms and improve supply side management of the economy. The GDP growth outlook at 7.Inflation was a challenge in India during the last year. However. FY 2012-13 marks the beginning of the first year of the twelfth five year plan of the government of India. One of the objectives identified for the same is focus on domestic demand driven growth recovery. Political uncertainty especially in Egypt continues to be an area of concern. The prospects and future of the Indian economy are bright and being an integral part of this economy your Company has always been committed to strong and sustained value creation. Such price hikes. RBI has followed a tight monetary policy during the last financial year. Outlook In spite of all the inherent risks in the macro environment today.

56 62.2% Asian Paints Limited Group Consolidated 2011-12 9632.35 94.80 700.30 1396.73 2010-11 7722.41 50.19 600.00 81.39 2010-11 6336.73 600.15 775.56 62.00 1443.24 412.54 958.39 600.24 442.13 292.39 881.directors’ report Dear Members.93 404.15 600.24 17.35 38.21 113.13 1454.11 418.53 225.4% Growth 24.08 23.48 1122.08 433.24 600.74 378.8% 15.18 775.00 91.3% 15.7% 15.8% 26 .18 40.49 1362.46 700. FINANCIAL RESULTS The financial performance of your Company.00 1558.Proposed Final Tax on Dividend Transfer to General Reserve Closing balance in Statement of Profit and Loss 91.10 600.00 1588.Interim .58 31.16 1493.6% 23. 2012.00 81.85 988.13 292.4% Growth 25.24 1616.15 23. Your Directors are delighted to present the 66th Annual Report of your Company and the Audited Accounts for the financial year ended 31st March.00 1375.11 486.50 1020.53 225.41 50. for the year ended 31st March.11 843.97 121. 2012 is summarized below: (` in Crores) Asian Paints Limited 2011-12 Revenue from Operations (Net) EBITDA Less: Finance Costs Less: Depreciation Profit before tax Less: Tax expense Profit After Tax Less: Minority Interest Profit attributable to shareholders of the Company Opening balance in Statement of Profit and Loss AMOUNT AVAILABLE FOR APPROPRIATION That the Directors recommend for appropriation as under: Dividend .82 99.6% 21.00 7964.7% 21.24 30.33 347.39 958.08 1232.16 15.13 1259.

2012 have been prepared in accordance with the Revised Schedule VI and accordingly. certain businesses will demerge into Asian Paints PPG Limited (APPL). The Scheme envisages merger of AP Coatings Ltd (100% subsidiary of your Company) and a wholly owned Indian subsidiary of PPG Industries Securities Inc.632. K.30 crores – growth of 24. If approved.00 crores is proposed to be retained in the statement of profit and loss. 2011. provided such companies fulfill conditions mentioned in the said circular. The annual accounts and financial statements of the subsidiary companies of your Company and related detailed information shall be made available to members on request and are open for inspection at the Registered Office of your Company. 50:50 joint venture between your company and PPG and thereafter.24 crores in the previous year – a growth of 17. the new Joint venture will service the protective. As informed in the last year’s Annual Report. Net Revenue from Operations for the standalone entity increased to ` 7964. the total dividend (interim and final dividend) for the financial year 2011-12 will be ` 40 (Rupees Forty only) per equity share. S. approved the Audited Consolidated Financial Statements for the financial year 2011-12 in accordance with the Accounting Standard (AS–21) and other Accounting Standards issued by the Institute of Chartered Accountants of India as well as Clause 32 of the Listing Agreement. 2011 and paid it in the month of November. Accordingly. turnover. forms part of this report. industrial containers and light industrial coatings markets. ` 32 (Rupees Thirty Two only) per equity share was paid as dividend for the previous year. total liabilities. the Board of Directors of your Company at its meeting held on 8th May. and forms part of this report. details of investment. The operating profit (EBITDA) increased by 21. SECRETARIAL AUDIT Dr. A statement of summarized financials of all subsidiaries of your Company including capital. Net profit after minority interest for the group for the current year is ` 988. new 50:50 joint venture between your Company and PPG.7 %. had granted an exemption to companies from complying with Section 212 of the Companies Act. 2011. DIVIDEND During the financial year 2011-12. 2/2011 dated 8th February.08 crores in the previous year – a growth of 25. USA. which include financial information of all its subsidiaries. your Directors recommend payment of ` 30.16 crores to ` 1493.24 crores. Practicing Company Secretary conducted Secretarial Audit pursuant to provisions of Section 383A of the Companies Act. which forms part of this Report. MANAGEMENT DISCUSSION AND ANALYSIS A detailed review of operations.7%. the previous year’s figures have been reclassified/ regrouped to conform to this year’s classification. Chandratre.16 crores from ` 6336.24 crores from ` 7722. for the financial year 2011-12.46 crores to the general reserve. 2011.3% CONSOLIDATED ACCOUNTS The Ministry of Corporate Affairs (MCA) by General Circular No. This 27 .50 (Rupees Nine and Paise Fifty only) per equity share in the month of October. industrial powder coatings. Dr. total assets. During the FY 2011–12. EXPANSION OF THE JOINT VENTURE WITH PPG INDUSTRIES INC. from ` 1. 1956 and other applicable provisions with the Hon’ble High Court of Judicature of Bombay.O. 447(E) dated 28th February. In addition. The Consolidated Financial Statements of your Company for the financial year 2011-12..232.. your Company declared an interim dividend of ` 9.6%. 1956. pursuant to the General Circular issued by the Ministry of Corporate Affairs. An amount of ` 700. 1956.2%. A certificate from the Joint Statutory Auditors of your Company regarding compliance with the requirements of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report. 1956. 1956 and other rules and regulations issued by SEBI/other regulatory authorities for Corporate law.e PPG Coatings India Private Limited into Asian PPG Industries Limited (APPG). 2012. 2012. reserves. your Company has filed a Composite Scheme of restructuring under Section 391– 394 of the Companies Act. Chandratre has submitted the Report confirming compliance with the applicable provisions of Companies Act.15 crores in the previous year – a growth of 23. R. have been prepared in compliance with applicable Accounting Standards and where applicable Listing Agreement as prescribed by the Securities and Exchange Board of India. The profit after tax for the current year is ` 958. performance and future outlook of your Company and its businesses is given in the Management Discussion and Analysis. Your Company has complied with all the conditions as stated in the circular and accordingly has not attached the financial statements of its subsidiary Companies for the financial year 2011-12. CONSOLIDATED FINANCIALS The Consolidated Net Revenue from Operations increased to ` 9. Your Company will have effective management control in APPL while PPG will take lead in APPG. TRANSFER TO RESERVES Your Company proposes to transfer ` 412. The financial statements of your Company for the year ended 31st March. etc. USA (PPG) i.STANDALONE FINANCIALS The Ministry of Corporate Affairs (MCA) vide notification no.50 (Rupees Thirty and Paise Fifty only) per equity share as the final dividend for the financial year ended 31st March. The report on Corporate Governance is included and forms part of this report. CORPORATE GOVERNANCE Your Company is compliant with the requirements of Clause 49 of the Listing Agreement. R. Necessary disclosures have been made in this regard in the Corporate Governance Report.39 crores as against ` 775.73 as against ` 843. 2011 amended the existing Schedule VI to the Companies Act. The Revised Schedule VI is applicable from financial year commencing from 1st April. K..

Your Directors recommend their re-appointment for the ensuing year. for the FY 2011-12. 1956 read with the Companies (Disclosure of particulars in the report of the Board of Directors) Rules. DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act. 1975 as amended. l l For and on behalf of the Board DIRECTORS The term of Mr. FIXED DEPOSITS Your Company has not accepted any fixed deposits during the year 2011-12 and there are no outstanding fixed deposits from the public as on the Balance Sheet date. as the Cost Auditor of your Company for the financial year 2011-12 to conduct the audit of the cost records of the Company. the Report and Annual Accounts of your Company sent to the shareholders do not contain the said annexure. Your Directors recommend their reappointment as Directors of your Company. The Board appointed Mr. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION The information on Conservation of Energy and Technology absorption by your Company as per Section 217(1)(e) of the Companies Act. Further. COST AUDITOR Pursuant to the direction from the Ministry of Corporate Affairs for appointment of Cost Auditors. 1956 with effect from 1st April. The accounting policies have been selected and applied consistently and the judgments and estimates made. Mr. Ketki Visariya. are given as Annexure to this report in Form ‘A’ and ‘B’. K B S Anand as an Additional Director in accordance with Section 260 of the Companies Act. are reasonable and prudent. Any member desirous of obtaining a copy of the said annexure may write to your Company Secretary at the Registered Office of the Company. Mr. B S R & Associates. read with the Companies (Particulars of Employees) Rules. ceased to be a Director on the Board of your Company. Shah & Co. 2012 Ashwin Choksi Chairman 28 . The Board has placed on its record a deep sense of appreciation for the valuable contributions rendered by Mr. 1956. 2011. The Statutory Auditors of your Company have submitted a certificate to your Company that they have subjected themselves for the peer review process of the Institute of Chartered Accountants of India for the financial year 2011-12. Ashwin Dani. 2012 and of the profit and loss of the Company for that period. 1956 and the Articles of Association of the Company. due date for submission of Cost Audit Report is 27th September. vendors. 2011 was filed by the Cost Auditor on 3rd August. FOREIGN EXCHANGE EARNINGS AND OUTGO Details of expenditure and earnings in foreign currencies are given under Note 34 and 35 to the financial statements. 2012 and consequently he Mumbai 8th May. 2012. In accordance with the provisions of the Companies Act. Mr. 2015. The brief resume of the aforesaid Directors and other information have been detailed in the Notice. However. APPRECIATION Your Directors take this opportunity to thank and place on record their appreciation for all the employees at all levels for their hard work and dedication during the year. offer themselves for re-appointment. 1988. the Directors hereby confirm that: l l In preparation of the annual accounts. business associates. regulatory and government authorities for their consistent support.would enable utilization of respective strengths in order to capture the growth in infrastructure development and globally driven markets in India. 1956. Chartered Accountants. buildings. bankers. Your Directors sincerely convey their appreciation to customers. AUDITORS M/s. The Cost Audit report for the FY 2010-11 due on 27th September. as per the provisions of Section 219(1)(b) (iv) of the Companies Act. Abhay Vakil and Dr.. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. P M Murty as Managing Director & CEO came to an end on 31st March. respectively. 1956. and The annual accounts have been prepared on a going concern basis. S Sivaram retire by rotation at the conclusion of the forthcoming Annual General Meeting and being eligible. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. your Board has reappointed Ms. Chartered Accountants and M/s. the applicable accounting standards have been followed. 1956. PERSONNEL In terms of the provisions of Section 217 (2A) of the Companies Act. 2012 to 31st March. 2012 and as Managing Director & CEO with effect from 1st April. plant and machinery and liabilities under legislative enactments are adequately insured. Joint Auditors of your Company are due for retirement at the ensuing Annual General Meeting and are eligible for re-appointment. Appropriate resolutions for their re-appointment are being placed before you for your approval at the ensuing Annual General Meeting. P M Murty during his tenure of three years. names and other particulars of employees are required to be attached to this report. shareholders. INSURANCE All the insurable interests of your Company including inventories. Ashwin Choksi. so as to give a true and fair view of the state of affairs of the Company as on 31st March.

12 2010-11 29 .182 8.Annexure to Directors’ Report Form A Disclosure of particulars with respect to Conservation of Energy: Particulars A 1. Furnace Oil Quantity (in MTs) Total Amount (` in Crores) Average rate/Kg.40 1. Own Generation Through diesel Generator Units (‘000 KWH) Units per ltr of diesel oil Cost/unit (`) Natural Gas Units (‘000 KWH) Units per nm3 Cost/unit (`) 2.14 1.21 37.73 16.687 18.209 3.36 6.514 5.66 4. Natural Gas Quantity (in ‘000 cubic m.685 3.585 9.24 32. Consumption per unit of production Electricity 2011-12 2010-11 Paints Phthalic Penta 105 34 91 110 62 120 Furnace Oil 2 3 Natural Gas 5 53 4 69 Coal 4 3 Diesel 2 3 3.00 40.61 29.54 29. Power and fuel consumption Electricity a.89 5. (`) B.32 5.53 10.) Total Amount (` in Crores) Average rate/cubic m.23 16.12 25.276 3.430 3.60 3.761 6.82 19. Purchased Units (‘000 KWH) Total Amount (` in Crores) Rate per unit (`) b.952 10.12 1.122 3.821 18. Diesel Quantity (in KL) Total Amount (` in Crores) Average rate/Ltr.191 4.09 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011.48 10. Coal Quantity (in MTs) Total Amount (` in Crores) Average rate/MT (`) 3.76 6. (`) 4.11 5.88 995 4.44 4.66 39.86 18.262 14. (`) 5.642 6.

Productivity improvement achieved in manufacture of select machine colorants. Advanced analytical technique developed to map select paint ingredients across the paint film. Developed Touchwood Exterior – Gloss and Silk Matt – for wood surfaces Irridescent Special Effects finishes developed. Optimization of products and processes to minimize waste generation and reduce environmental and safety concerns. Collaborative development with vendors. The R&D Unit of your Company is carrying out the following activities to support the business goals of your Company: • • • • Development of new products and processes related to surface coatings and intermediates. Productivity improvement achieved in the manufacture of variety of Resins. Value engineering through formulation re-engineering and identification of new and alternate raw materials. Research on new functional polymers. Benefits derived as a result of above R&D: • • • • • • • • • • • • • Developed self healing coatings for wood substrates. Development of new application techniques for various substrates. academia and institutes. Import substitution and identification of new raw material for development. Stress intensity calculations done on colorant manufacturing process. Premium Satin Enamel range improved for anti-fungal performance. Developed Range of Primers for Auto Refinish market. Developed specialty Polymers for high performance coatings.Annexure to Directors’ Report Form B Disclosure of particulars with respect to technology absorption: Research and Development (R&D) 1. Developed high performance metal primer for harsh coastal weather conditions in Decorative applications. characterization techniques. 30 . Specific area in which R&D is carried out by the Company. Development of new analytical test methods. Developed Heat Resistant Coating System. • • • • • • 2. Developed entire range of machine colorants with lower volatile organic components. Upgradation of existing product and processes. emulsions and nano technology. Development of domain expertise to expedite product development.

The demand for your Company’s products from these markets was stable during the year. In order to address the needs of the customers in a rapidly changing market place. Export queries received in India from countries where your Company has operations is routed through respective overseas units. 4.73 7. improve its manufacturing and open new applications.23 35. Building on earlier activities that have paid off.336 0. Further plan of action: Your Company considers the development of technical capabilities to sustain its competitive position in the market place of primary importance. For and on behalf of the Board Ashwin Choksi Chairman Mumbai 8th May.90 6. the Company will continue to strengthen its technical programs and the skills of its technical personnel.24 43. Foreign exchange earnings and outgo: Your Company’s exports primarily consist of Di-pentaerythritol and Monopentaerythritol to American and European markets. 2012 31 .3.55% 2010-11 3. Your Company also exports items to its overseas units and licensees. adaptation and innovation: All developments were done indigenously. Specific products or special products which are of low volume for domestic manufacture by the overseas units are also produced and exported to the units from India. Tecnology absorbtion. Support is extended to overseas units through export of marketing materials and machinery parts. your Company will continue to develop advanced technical capabilities and technology platforms to support its product plans.57% 5. The Di-pentaerythritol is used mainly as an additive in the manufacture of lubricants and the Monopentaerythritol is mainly used in the manufacture of explosives.67 32.49 37.964 0. Expenditure on R & D during the year is as follows: (` in Crores) Particulars Capital Recurring Total Net Revenue from Operations R & D expenditure as % of Net Revenue from Operations 2011-12 6.

2012 For B S R & Associates Chartered Accountants Firm Registration No. and taken on record by the Board of Directors. 2012. 2012. (e) on the basis of the written representations received from the Directors of the Company as at 31st March. Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211(3C) of the Act. 2012. annexed thereto. in the case of the Statement of Profit and Loss. For Shah & Co.: 116231W Natrajh Ramakrishna Partner Membership No. As required by the Companies (Auditor’s Report) Order. the said financial statements give the information required by the Act. and also the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year ended on that date. we report that none of the directors of the Company is disqualified as on 31st March.Auditors’ Report to the Members of Asian Paints Limited We have audited the attached Balance Sheet of Asian Paints Limited (‘the Company’) as at 31st March.: 103750 Mumbai 8th May. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. and (iii) in the case of the Cash Flow Statement. we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable. from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Act. 2012. of the profit of the Company for the year ended on that date. Further to our comments in the Annexure referred to above. We believe that our audit provides a reasonable basis of our opinion.: 109430W Ashish Shah Partner Membership No. 1956 (‘the Act’). We conducted our audit in accordance with auditing standards generally accepted in India. issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act. An audit includes examining. An audit also includes assessing the accounting principles used and significant estimates made by management. as well as evaluating the overall financial statement presentation. evidence supporting the amounts and disclosures in the financial statements. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. (b) in our opinion. of the state of affairs of the Company as on 31st March. which to the best of our knowledge and belief were necessary for the purpose of our audit. (c) the Balance Sheet.: 32815 32 . in the prescribed manner and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) in the case of the Balance Sheet. (d) in our opinion. the Balance Sheet. and (f) in our opinion. Statement of Profit and Loss and Cash Flow Statement referred to in this report are in agreement with the books of account. 2003. we report that: (a) we have obtained all the information and explanations. of the cash flows for the year ended on that date. These financial statements are the responsibility of the Company’s management. on a test basis. Chartered Accountants Firm Registration No. Our responsibility is to express an opinion on these financial statements based on our audit. and to the best of our information and according to the explanations given to us.

(a) According to the information and explanations given to us. this periodicity of physical verification is reasonable. Cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. Sales-tax. (a) The inventory. written confirmations have been obtained. (a) The Company has maintained proper records showing full particulars. have been entered in the register required to be maintained under that section. and according to the information and explanations given to us. 2012 (Referred to in our report of even date) 1. the Company has an internal audit system commensurate with the size and nature of its business. (b) The Company has a regular programme of physical verification of its fixed assets by which all the fixed assets are verified in a phased manner. No material discrepancies were noticed on such verification. The discrepancies noticed on verification between the physical stocks and book records were not material. However. According to the information and explanations given to us. Service tax. 4. In our opinion. including quantitative details and situation of the fixed assets. 3. to or from companies. there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to sale of goods and services. 33 . the transactions made in pursuance of contracts and arrangements referred to in (a) above and exceeding the value of ` 5 lakh with any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. 8. except goods-in-transit and stocks lying with third parties. Employees’ State Insurance. firms or other parties covered in the register required to be maintained under Section 301 of the Act. Fixed assets disposed of during the year were not substantial and therefore do not affect the going concern assumption. (c) The Company has maintained proper records of inventory. 5. Wealth tax. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company. amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund. the particulars of all contracts and arrangements referred to in Section 301 of the Act. and according to the information and explanations given to us.Asian Paints Limited Annual Report 2011-2012 Annexure to the Auditors’ Report . 7. we have not made a detailed examination of the records. the frequency of verification is reasonable. In our opinion. The Company has neither granted nor taken any loans. have been physically verified by the management during the year.31st March. Excise duty. Investor Education and Protection Fund. (c) 2. For stocks lying with third parties at the year end. The Company has not accepted any deposits from the public. 6. Income-tax. Income-tax. (b) In our opinion. secured or unsecured. having regard to the size of the Company and the nature of its assets. no undisputed amounts payable in respect of Provident Fund. Sales-tax. In our opinion. We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under Section 209(1) (d) of the Act and are of the opinion that prima facie. In our opinion. We have not observed any major weakness in the internal control system during the course of the audit. Wealth 9. the prescribed accounts and records have been made and maintained. Employees’ State Insurance. Investor Education and Protection Fund. (b) The procedures for the physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. over a period of 3 years. Customs duty.

F.02 0. F. F.Y. 2008-09 to 2010-11 F.Y. the Company has not defaulted during the year in repayment of dues to its bankers or to any financial institution.79 Second Appellate level Tribunal 13. In our opinion.Y.96 High court 0.28 Tribunal 0. 2003-04. F. 2000-01 to 2009-10 F. Cess and other material statutory dues were in arrears as at 31st March. 2000-01 to 2003-04.Y. 1995-96 to 1999-2000.Y. (b) According to the information and explanations given to us.Y. F. 2007-08 F.Y.Y.Y. 1969-73.Y.90 0. F.Y. F. F. the following dues have not been deposited by the Company on account of disputes.Y.27 1.Y.Y. F. F.Y. F. 2004-05 to 2007-08 F. 2000-01 and F. The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year and in the immediately preceeding financial year.Y. 2012 for a period of more than six months from the date they became payable. 2004-05 dispute A. 1992-93 to 1993-94. F. 2000-01 to 2002-03. 1999-00 to 2001-02.Y.1997-98. F.Y. F. 1994-95 to 1995-96. 2001-2002 to 2011-2012 F.tax. 1944 to Excise duty F. 1996-97 to AY 1999-2000 Total (C) Grand Total (A)+(B)+(C) 0. 11. 1997-98. 34 . Excise duty.Y. 1992-93 to 1997-98.Y.22 Supreme Court 31. 1996-97 to 1998-99.Y.53 First Appellate Amount Forum where (` In Crores) dispute is pending 16.09 0. 1986-87. 1993-94. F.55 First Appellate level 0. The Company did not have any outstanding debentures or any outstanding loans from financial institutions during the year.Y.Y.Y. 1998-99 to 1999-2000 Total (B) Income Tax IT matters under A. Service tax.74 High Court Assessing Officer First Appellate Tribunal 10. 2003-04 A.54 0. Name of the Statute Sales Tax Nature of dues Assessment Dues Financial Year F.51 0. 1993-94. F. Customs duty.52 0.Y.Y. F. 2005-06 to 2006-07 F. 2003-04 to 2006-07 Total (A) Excise Central Excise Dispute relating Act. 1992-93.Y 1991-92.Y.30 33.Y. and according to the information and explanations given to us.

According to the information and explanations given to us. and on an overall examination of the Balance Sheet of the Company. we are of the opinion that funds raised on short term basis have not been used for long term investment. For Shah & Co. 14. and according to the information and explanations given to us. The Company did not have any term loans outstanding during the year. The Company has not issued any debentures during the year. 13.Asian Paints Limited Annual Report 2011-2012 12. debentures and other securities. the terms and conditions of these guarantees are not prejudicial to the interest of the Company.: 116231W Natrajh Ramakrishna Partner Membership No. mutual benefit fund or society. As per the information and explanation given to us.: 103750 Mumbai 8th May. 20. 21. According to the information and explanations given to us. The Company has given certain guarantees on behalf of its dealers and subsidiaries as mentioned in note 25 (a) of Notes to Accounts. The Company has not raised any money by public issues during the year. 2012 For B S R & Associates Chartered Accountants Firm Registration No. 17. 16. the Company is not dealing or trading in shares. The Company has not made any preferential allotment of shares to company. debentures and other investments. 18. no material fraud on or by the Company has been noticed or reported during the course of our audit. 19. Chartered Accountants Firm Registration No. firms or parties covered in the register maintained under Section 301 of the Act during the year. In our opinion based on the information and explanations received. nidhi. securities. The Company has not granted any loans and advances on the basis of security by way of pledge of shares.: 109430W Ashish Shah Partner Membership No. 15.: 32815 35 . the Company is not a chit fund. In our opinion.

62 65.89 464.54 39.43 204.675.40 1.76 355.069.01 84.290.22 311.04 Total Significant Accounting Policies 1 Notes are an integral part of the financial statements.487.75 3.096. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee Jayesh Merchant Chief Financial Officer & Company Secretary 36 .86 2.777.79 21.03.65 18.86 206.04 4 5 6 7 8 9 10 7 11 A 11 B 12 13 14 15 16 17 13 18 987.855.84 1.07 2. 103750 Mumbai 8th May.071.2011 95.Balance Sheet as at 31st March.32 57.97 153.88 279.50 4.038.03. 32815 Ashwin Choksi Chairman K.06 755.51 1.64 80.59 4.92 1.57 3.56 509. B. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.67 1. S.24 500.975.79 91.391.264.17 110.96 66.08 4.03 As at 31.44 355.855.980.03 1.45 2.92 2.42 500.27 2.75 1.34 263.00 1.611.78 341. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.25 602.60 3.980.879.2012 (` in Crores) As at 31. As per our report of even date For and on behalf of the Board For Shah & Co.98 931.78 52.453.00 1.16 202.69 95.83 97. 2012 Notes EQUITY AND LIABILITIES ShAREhoLDERS' FUNDS Share Capital Reserves and Surplus NoN-CURRENT LIABILITIES Long Term Borrowings Deferred Tax Liability (Net) Other Long Term Liabilities Long Term Provisions CURRENT LIABILITIES Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions Total ASSETS NoN-CURRENT ASSETS Fixed Assets Tangible Assets Intangible Assets Capital work-in-progress Non-current Investments Long Term Loans and Advances CURRENT ASSETS Current Investments Inventories Trade Receivables Cash and Bank balances Short Term Loans and Advances Other Current Assets 2 3 95.50 274.71 75.12 3.

45 1. 103750 Mumbai 8th May. DEPRECIATION AND AMoRTISATIoN (EBITDA) Depreciation and Amortisation Expense Finance Costs PROFIT BEFORE TAX Less: Tax Expenses Current Tax Deferred Tax (Excess) tax provision for earlier years Total Tax Expenses PROFIT AFTER TAX Earnings per share (`) Basic and diluted (Face value of ` 10 each) Significant Accounting Policies Notes are an integral part of the financial statements. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.410.105.81 For and on behalf of the Board Ashwin Choksi Chairman K. 32815 46 1 11 24 21A 21B 21C 22 23 4. S.612.99 26.82 1.Asian Paints Limited Annual Report 2011-2012 Statement of Profit and Loss for the year ended 31st March. 2012 Notes INCoME Revenue from Operations (Net of discounts) Less: Excise duty Revenue from Operations (Net of discounts and excise duty) Other Income ToTAL REVENUE EXPENSES Cost of Materials Consumed Purchases of Stock-in-trade Changes in inventories of finished goods.964.76 4.76 783.08 74.50 5.64 6.362.22) 347.15 80.122.542.56 (140.16 141.98 3.90 6.24 99.92 105. work in progress and stock-in-trade Employee Benefits Expense Other Expenses TOTAL EXPENSES EARNINGS BEFORE INTEREST.493.54 958.16 94.41 (4.70 6.61) 300.63 1.747.41 1. TAX.681.957.92 324.35 1.33 5 402.93 20 19 8.232. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee Jayesh Merchant Chief Financial Officer & Company Secretary 37 .60 7.18 775.231.07) 341.722.82 1.72 621.49 30. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.16 (2.39 99.336.74 120. B. As per our report of even date For Shah & Co.48 15.49 8.178.41 (115.38) 404.65 Year 2011-12 (` in Crores) Year 2010-11 6.

68 Repayment of long-term borrowings (4.Cash Flow Statement for the year ended 31st March.30) 2.45 5.18) Trade and other payables* 260.62) 277.20 Profit on Sale of long-term investments (32.22) Cash and Cash equivalent as at 31.38) Dividend and Dividend tax paid (367.25 Dividend received 57.46 Net profit on sale of short term investments 0. ** Cash and Cash equivalents are Cash and Bank balances as mentioned in Note 17.39) Purchase of long-term investments .30) (319.49 Interest income (2.54 (35.93 Adjustments for : Depreciation/Impairment 99.26) Cash and Cash equivalent as at 01.01 Less: Effect of exchange gain/loss on cash and cash equivalents (0.53) Net Cash generated from operating Activities 753. As per our report of even date For Shah & Co.46) Profit on Sale of short-term investments (0.04.67 (0. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.37 1.362.2011 ** 509.20) (26.89 36.77) (16.65 (5.subsidiaries * (15.52) Dividend income (57. 2012 (` in Crores) 2011-12 (A) Cash Flow from operating Activities Profit before tax 1.48 495.42 Net Cash used in Investing Activities (464.25 (144. 32815 For and on behalf of the Board Ashwin Choksi Chairman K.19) (308.87) (C) Cash Flow from Financing Activities Repayment of short-term borrowings (3.47 Loans to subsidiaries (0.189.01 Jayesh Merchant Chief Financial Officer & Company Secretary 38 .07) 15.09) 0.05) Purchase of long-term investments .83) Loss/(Profit) on Sale of fixed assets 0.83 Interest received 2.90) (36.87) 1.2012 ** 500.65) 743.02 509.20 Income Tax paid (net of refund) (399.00) Sale of long-term investments 393.122.06) (D) Net Increase/(Decrease) in Cash (8.25) Net Cash used in Financing Activities (297.33 94. B.12) (301.48 (5.31 Adjustments for: Trade Receivables * (190.98) Proceeds from short-term borrowings 109.07 (410.67 (B) Cash Flow from Investing Activities Purchase of Fixed Assets (613. 103750 Mumbai 8th May.42) Finance costs 30.94 (0.55 0.406.42) Other Receivables * (91.39 Cash generated from operations 1.19) (311.03.153.23) 3. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee 2010-11 1.54) 13.13) Finance costs paid (31.096.10 Operating Profit before Working Capital changes 1.97 * Net of non cash items as mentioned in Note 47 (a). S.82 Net unrealised foreign exchange (gain)/ loss 6.86) Sale of Fixed Assets 0.45) (1.90 (353.35 1.others (290. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.90) Inventories * (231.

duties. (b) Intangible Assets Intangible assets acquired separately are measured on initial recognition at cost. The rates of depreciation prescribed in Schedule XIV to the Companies Act.1. (c) Presentation and disclosures in financial statements: For the year ended 31st March. for presentation and disclosures in financial statements. 2012. Depreciation on computers given on lease is provided under straight line method and at rates specified under Schedule XIV to the Companies Act.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements NoTE 1: Significant Accounting Policies 1. (c) Depreciation and Amortisation: Depreciation on all fixed assets is provided under Straight Line Method. if any. the revised Schedule VI notified under the Companies Act. Profit or Loss on disposal of tangible assets is recognised in the Statement of Profit and Loss. Depreciation on tinting systems except computers leased to dealers. Basis of preparation of financial statements (a) Basis of Accounting: The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules. depreciation is provided at a higher rate based on the management’s estimate of the useful life/remaining useful life. depreciation on following assets have been provided at rates which are higher than the corresponding rates prescribed in Schedule XIV. The cost of fixed assets includes taxes (other than those subsequently recoverable from tax authorities).are fully charged to the Statement of Profit and Loss in the year of acquisition. Leasehold land and leasehold improvements are amortised over the primary period of lease. 1. 2006 and with the relevant provisions of the Companies Act. Information Technology Assets Scientific Research equipment Furniture and Fixtures Office equipment and Vehicles Godowns. is applicable to the Company. Profit or Loss on disposal of intangible assets is recognised in the Statement of Profit and Loss. 39 . depreciation is provided on all eligible plant and machinery at rates applicable for continuous process plants and for other plant and equipment depreciation is provided on triple shift basis. 1956 are considered as the minimum rates. Expenses directly attributable to new manufacturing facility during its construction period are capitalized. intangible assets are carried at cost less accumulated amortization and accumulated impairment loss. Tangible and Intangible Assets (a) Tangible Fixed Assets Tangible fixed assets are carried at the cost of acquisition or construction. Pursuant to this policy. designs and drawings of buildings or plant and machinery is capitalized under relevant asset heads. Office and Roads situated within factory premises : 4 years : 8 years : 8 years : 5 years : 30 years For Phthalic Anhydride and Pentaerythritol plants. is provided under Straight Line Method over the estimated useful life of nine years as per technical evaluation. 1956. (b) Use of Estimates: The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.000/. 1956. freight and other directly attributable costs related to the acquisition or construction of the respective assets. Following initial recognition. Know-how related to plans. less accumulated depreciation and accumulated impairment. Assets costing less than ` 5. If the management’s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule. 1956. The Company has reclassified the previous year’s figures in accordance with the revised Schedule VI as applicable in the current year.2.

The amount recognised as sale is exclusive of sales tax/VAT and are net of returns. Investments Non-current investments are carried at cost. Profit or loss on sale of investments is determined on a first-in-first-out (FIFO) basis. packing materials. The carrying amount of the fixed asset is increased to the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. (c) Cost of finished goods and work-in-progress includes the cost of raw materials. Sales are stated gross of excise duty as well as net of excise duty. stores. components. Lease Accounting Assets taken on operating lease: Lease rentals on assets taken on operating lease are recognised as expense in the Statement of Profit and Loss on an accrual basis over the lease term.6. the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. stores.5. Provision for diminution in the value of non-current investments is made only if such a decline is other than temporary in the opinion of the management. excise duty as applicable and other costs incurred in bringing the inventories to their present location and condition. A reversal of impairment loss is recognised in the statement of Profit and Loss for the year. Cost of inventory comprises all costs of purchase. excise duty being the amount included in the amount of gross turnover.4. on straight line basis over its remaining useful life. Revenue from service is recognised on rendering of services to customers. (b) In determining cost of raw materials. Acquired Trade mark is amortised over a period of five years. 1. the asset’s recoverable amount is estimated. duties. The excise duty related to the difference between the closing stock and opening stock is recognised separately as part of changes in inventories of finished goods. the depreciation charge for the fixed asset is adjusted in future periods to allocate the asset’s revised carrying amount. Inventory (a) Raw materials. The comparison of cost and fair value is done separately in respect of each category of investments. Fixed production overheads are allocated on the basis of normal capacity of production facilities. spares and consumables. components. 40 . an appropriate share of fixed and variable production overheads. Assets given on operating lease: The Company has provided tinting systems to dealers on an operating lease basis. (d) Impairment At Balance Sheet date. less its residual value (if any). an assessment is done to determine whether there is any indication of impairment in the carrying amount of the Company’s assets.Notes to Financial Statements Purchase cost. weighted average cost method is used. consumables and stock-in-trade are carried at the lower of cost and net realisable value. 1.3. Interest income is recognised on the time proportion basis. Lease rentals are accounted on accrual basis in accordance with the respective lease agreements. work in progress and stock-in-trade. finished goods. 1. Revenue Recognition Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. If any such indication exists. packing materials. spares. user license fees and consultancy fees for major software are amortised over a period of four years. Current investments are carried at lower of cost and fair value. Processing income is recognised on accrual basis as per contractual arrangements. unserviceable and inert stocks are suitably written down/provided for. Damaged. 1. Dividend income is recognised when the right to receive payment is established. The comparison of cost and net realisable value is made on an item-by-item basis. taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their present location and condition. An assessment is also done at each Balance Sheet date whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased. the asset’s recoverable amount is estimated. If any such indication exists. On disposal of an investment. packing materials. After recognition of impairment loss or reversal of impairment loss as applicable. stock-in-trade. work-in-progress.

Discounts due. 1. as approved by the Board of Directors. Short Term Employee Benefits: All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognised in the period in which the employee renders the related service. The minimum interest payable by the trust to the beneficiaries is being notified by the Government every year. (b) Defined benefit plans (i) Provident Fund scheme The Company makes specified monthly contributions towards Employee Provident Fund scheme to a separate trust administered by the Company. The Company recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.7. The Company contributes to a separate entity (a fund). Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each Balance Sheet date. Any Profit or Loss arising on cancellation or renewal of such forward exchange contract is also recognised as income or expense for the period. (iv) Post Retirement Medical benefit plan The Company operates a defined post retirement medical benefit plan for certain specified employees and is payable upon the employee satisfying certain conditions. Transactions in Foreign Currency (a) Initial recognition: Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction. Post-employment benefits: (a) Defined contribution plans Defined contribution plans are Employee State Insurance scheme and Government administered Pension Fund scheme for all employees and Superannuation scheme for eligible employees. 1. Trade receivables Trade receivables are stated after writing off debts considered as bad. (ii) Gratuity scheme The Company operates a defined benefit gratuity plan for employees. yet to be quantified at the customer level are included under the head of provision for expenses in Other Current Liabilities.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements 1. Employee Benefits A. else is amortised on a straight-line basis over the average period until the amended benefits become vested.8. (b) Measurement of foreign currency items at the Balance Sheet date: Foreign currency monetary items of the Company are restated at the closing exchange rates. (c) Forward exchange contracts: The premium or discount arising at the inception of forward exchange contract is amortized and recognised as an expense/income over the life of the contract. if any. B. The Company has an obligation to make good the shortfall. Exchange differences on such contracts are recognised in the Statement of Profit and Loss in the period in which the exchange rates change. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss. between the return on investments of the trust and the notified interest rate. 41 . Past service cost is recognised immediately to the extent that the benefits are already vested.9. towards meeting the Gratuity obligation. The Company presents this liability as current and non-current in the balance sheet as per actuarial valuations and certificate issued by the independent actuary. (iii) Pension scheme The Company operates a defined benefit pension plan for certain specified employees and is payable upon the employee satisfying certain conditions. Adequate provision is made for debts considered doubtful. The Company’s contribution to defined contribution plans are recognised in the Statement of Profit and Loss in the financial year to which they relate.

where there is unabsorbed depreciation or carry forward loss under taxation laws. 1. Measurement of EBITDA The Company has elected to present earnings before interest (finance cost). 1. directly attributable to the acquisition. 1961) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).Notes to Financial Statements The defined benefit obligations recognised in the Balance sheet represent the present value of the defined benefit obligations as adjusted for unrecognised actuarial gains and losses and unrecognised past service costs. amount of tax for the period determined in accordance with the Income Tax Act. All other borrowing costs are expensed in the period they occur. The Company measures EBITDA on the basis of profit/(loss) from continuing operations. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation.13. but probably will not require an outflow of resources. 1. no provision or disclosure is made. deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. The Company presents the above liabilities as current and non-current in the balance sheet as per actuarial valuations and certificate issued by the independent actuary. construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised. amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Other long-term employee benefits Entitlements to annual leave and sick leave are recognised when they accrue to employees. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Research and Development (a) Capital expenditure is shown separately under respective heads of fixed assets. pending approval at the Annual General Meeting. however. C. The Company determines the liability for such accumulated leaves using the Projected Accrued Benefit method with actuarial valuations being carried out at each Balance Sheet date. (b) Revenue expenses including depreciation are charged to statement of Profit and Loss under the respective heads of expenses. depreciation and amortisation (EBITDA) as a separate line item on the face of the Statement of Profit and Loss for the year. if applicable.15. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future.12.10. Earnings Per Share The Basic and Diluted Earnings Per Share (“EPS”) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year. 1. 1. 1. Provisions and Contingencies The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Proposed Dividend Dividend recommended by the Board of directors is provided for in the accounts. and as reduced by the fair value of plan assets.16.e. however. The Company presents this liability as current and non-current in the Balance Sheet as per actuarial valuations and certificate issued by the independent actuary. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote. if any. tax. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognised representing the unrecognised past service cost plus the present value of available refunds and reductions in future contributions to the plan. Sick leave can only be availed while annual leave can either be availed or encashed subject to a restriction on the maximum number of accumulation of leave.14. the entire liability towards gratuity is considered as current as the Company will contribute this amount to the gratuity fund within the next 12 months. 1. Borrowing costs. Borrowing Cost Borrowing cost includes Interest. 42 .11. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may. Provision for Taxation Tax expense comprises of current tax (i.

000 50.779) Equity Shares of ` 10/. Each holder of equity shares is entitled to one vote per share.19.03.per share.59.03.50 100.59. However no such preferential amounts exist currently.00.92 9.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements NOTE 2 : SHARE CAPITAL Authorised 9.93 crores including corporate dividend tax of ` 62.779 95.95.49.19.05 crores including corporate dividend tax of ` 50. 2011 declared an interim dividend of ` 9.19.56 5.2011 No. of Shares ` in Crores 9.232 16.59.54 31.59.779 95.22.000 (Previous year 9.779 (Previous year 9.11 crores).2011 No.000) 11% Redeemable Cumulative Preference Shares of ` 100/.each (Previous year 50.000) Equity Shares of ` 10/.54.19.00 95. Payment of dividend is also made in foreign currency to shareholders outside India. The Company declares and pays dividends in Indian Rupees. 2012 amounted to ` 445.92 (` in Crores) As at 31. 95.779 95.each As at 31. the total dividend (interim and final dividend) for the financial year 2011-12 will be ` 40. subject to the approval by the shareholders at the ensuing Annual General Meeting.868 53.45.92.per equity share was paid as dividend for the previous year. The Company has only one class of shares referred to as equity shares having a par value of ` 10/.00.03.92 a) Reconciliation of the number of shares outstanding at the beginning and at the end of the year Equity Shares 31.95.50 0.59.59.00 per equity share.92 95. The Board of Directors at its meeting held on 21st October. of Equity Percentage Shares holding 1.50 (Rupees thirty and paise fifty only) per share has been recommended by the Board of Directors at its meeting held on 8 th May.50 (Rupees nine and paise fifty only) per equity share of ` 10/.2012 No.19.03. the holders of equity shares will be entitled to receive remaining assets of the Company.19. ` 32/. of Shares ` in Crores No.50 0.89 Name of Shareholders Equity Shares of ` 10/. except in the case of interim dividend.15 5.03. of Equity Percentage Shares holding 1.727 15.92 9. 2012. 43 . A final dividend of ` 30.each 1.24 crores.each. Subscribed and Paid-up capital 9.2011 99.2012 99. (Previous year ` 357.92 95.92 At the beginning of the year Add: Issued during the year outstanding at the end of the year b) Details of Shareholders holding more than 5% Equity Shares in the Company # 31.92 9.13. As per the Companies Act.03. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Geetanjali Trading and Investment Private Limited 2.each fully paid.538 56. 1956. including its register of members.00 Issued.2012 31. If approved. Life Insurance Corporation of India c) Terms/rights attached to Equity Shares # As per the records of the Company. The total dividend appropriation for the year ended 31st March. The distribution will be in proportion to the number of equity shares held by the shareholders.779 95.50 100. after distribution of all preferential amounts in the event of liquidation of the Company.

2012 is ` 40.2011 12.10 1.56 62. This interest free loan has a deferment period of 14 years and is repayables in 9 yearly installments starting from April.03.10 600.64 17.50)] . @ Default in terms of repayment of principal and interest – NIL.03.39 91.2011 * 0.37 40. is secured by a first charge on the Company's immovable properties pertaining to the paint plant at Kasna and by way of hypothecation of all movable properties at the above location.50)] Income Tax on Dividend (includes income tax on proposed dividend) Transfer to General Reserve Closing balance As at 31.03.Notes to Financial Statements NOTE 3 : RESERVES AND SURPLUS (a) Capital Reserve [` 5. The Company is also 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.691.2012 31.2012 31. 44 .P. 2011 the Company has received the eligibility certificate from the Government of Haryana sanctioning an interest free loan of ` 3. 2012.11 418.64 0.64 52.05 4.27 52.278.000/-.State of Andhra Pradesh represents interest free loan availed under the Sales tax deferment Scheme of the Government of Andhra Pradesh.2011 (` in Crores) Current As at As at 31.03.879.71 57.40 crores on 2nd April.07) - 4.07 (5. For the period ended 31st March.Interim Dividend [Amount per share ` 9.2012 * 0.391.53 225.86 (` in Crores) As at 31.24 412.15 1.05) - # Interest free Term loan from the Pradeshiya Industrial Corporation of U.50 (Previous year ` 8.41 50.40 NOTE 4 : LONG TERM BORROWINGS Deferred payment liabilities @ Secured Financial Institution (Sales tax deferment scheme – State of Uttar Pradesh) # Unsecured Sales tax deferment scheme – State of Andhra Pradesh ## Amount included under the head "other current liabilities" (Refer Note 10) Non-Current As at As at 31.60 crores the Company has already repaid ` 13.36 600. For the year ended 31st March.01 40. Out of the total sales tax deferment loan of ` 30.39 1. 2012 and balance amount of ` 17.375.00 1. 2007 as per repayment schedule. The accumulated sales tax deferment loan till 31st March.05 (4.50 860.70 57.59 crores till 31st March.46 700.00 2.50 (Previous year ` 23.46 1. (Previous year ` 5.90 412.15 81. 2010.43 5. 2012.70 crore.13 292.P.Proposed Final Dividend [Amount per share ` 30.03.01 crores is repayable in next 4 years upto May.80 418.90 600.278.558. Limited (PICUP) under Sales Tax Deferment Scheme of Government of U.00 775. but the same is yet to be disbursed by them. 2015.03.000/-)] (b) Capital Redemption Reserve (c) General Reserve As per last Balance Sheet Add: Transfer from surplus in Statement of Profit and Loss (d) Surplus in Statement of Profit and Loss As per last Balance Sheet Add: Net profit after tax transferred from Statement of Profit and Loss Amount available for appropriation Less: Appropriations Dividend on Equity shares: .50 1. ## Sales tax deferment . the Company is in the process of making necessary application to the Government of Haryana for the issue of eligibility certificate.71 4.00 958. 2012 as per repayment schedule. This interest free loan has a deferment period of 10 years and is repayable in 9 yearly installments starting from May.

03.10 19.19 Net Deferred tax (expense) for the year (4. Expense claimed for tax purpose on payment basis (Amount paid under protest) (8.61 1.61 2. The major components of deferred tax (liabilities)/assets arising on account of timing differences as at 31st March.95) the books of accounts and Income Tax Act.34 6.03.2011 Deferred tax liabilities Difference between Written Down Value/Capital work-in-progress of fixed assets as per (97.62 4.76 7.22 0.2011 20. 2012 are as follows: (` in Crores) As at As at 31.38 27.90) Deferred tax assets Provision for expense allowed for tax purpose on payment basis 18. that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS 22) – Accounting for Taxes on income.24) (95.82 7.10 292.03.60 0.2012 31.2012 31.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements NoTE 5 : DEFERRED TAX LIABILITY (NET) The Company has recognized deferred tax arising on account of timing differences.43 (` in Crores) Short-term As at As at 31.57 274.08 20.66 2. being the difference between the taxable income and accounting income.34 1. 1961 1.20 8.80 0.65 3.03.10 0.05 65.95) Total deferred tax liabilities (106.76 1.42 0.75) (75.16) (26.96 3.93 66.03.03.94 4.60 0.03.10 1.03.15 8.17 Capital losses carried forward under Income Tax Act.10 1.2012 31.03.05 225.89) (6.13 2.14 0.62 4.95 0.06 0.2012 31.64 Provision for doubtful debts and advances 5.96 NOTE 7 : PROVISIONS Provision for Employee Benefits (Refer Note 45) Provision for Compensated absences Provision for Gratuity Provision for Pension Provision for Post retirement medical benefit Other benefits Provision for Excise (Refer Note 41) Provision for Central Sales Tax/VAT (Refer Note 41) Proposed Dividend Provision for Income Tax on Proposed Dividend Provision for Income Tax (Net) Long-term As at As at 31.2011 3.07 4.56 47.88) - NoTE 6 : oThER LoNG TERM LIABILITIES Retention monies relating to capital expenditure Trade deposits – interest free Amount included under the head "Other current liabilities" (Refer Note 10) Non-Current As at As at 31.13) (102.16 49. 1961.40 Net deferred tax (liability) (80.2012 31.2011 5.25 9.41 36.34 Total deferred tax assets 25.41) (` in Crores) Current As at As at 31.46 0.41 355.2011 50.46 4.09 1.50) Net Deferred tax liability of earlier years 1.75 45 .88 (20.07 0.03.25 Voluntary Retirement Scheme (VRS) expenditure (allowed in Income tax over five years) 0.02 4.31 0.82) (7.

69 7.41 4.93 1.07 20.70 195.48 122.03.a.43 464.28 9.10 * 0.77 755.44 (` in Crores) As at 31.96 9. 46 .98 59.61 3.2011 4.16 724.88 crores due to Non-Executive Directors (Previous year ` 1.72 1.75 14.50% to 12.2012 110.34 57.03. spares and consumables Payable to Employees [including ` 2.15 9.05 7.98 # Secured by hypothecation of inventories and trade receivable and carries interest rate @ 11.51 (` in Crores) As at 31.89 (` in Crores) As at 31.51 110. ## Overdraft in current account carries interest rate @ 10.14 64. As at 31.000/-)] (iii) Unclaimed amount of sale proceeds of fractional coupons of bonus shares issued in earlier years (d) Other Payables Statutory Payables Payable towards Central Sales Tax and VAT Payable towards Excise and Service tax Payable towards TDS under Income tax Payable towards Providend Fund.a.069. 2012.50% p. @ Foreign currency loan carries interest @ LIBOR plus 0.42 5. Small and Medium Enterprises) NoTE 10: oThER CURRENT LIABILITIES (a) Current maturities of Long-term borrowings (Refer Note 4) (b) Current portion of Other long-term liabilities (Refer Note 6) (c) Investor Education and Protection Fund # (i) Unpaid/ Unclaimed dividend (ii) Unpaid/ Unclaimed matured deposits [Current year NIL (previous year ` 15.01 202.2011 2. Profession Tax and ESIC Payable towards capital expenditure Payable towards Services received Payable towards Stores. These amounts shall be paid to the Fund as and when they become due. repayable on their respective due dates within next 12 months.74 0.75% to 14.50 crores)] Payable to Bank towards unamortised premium on forward exchange contracts Interest accrued but not due on borrowings Provision for other expenses [including ` 1.02 448.5% p.a.00 crores due to Managing Director (Previous year ` 1.2012 1.06 As at 31.2012 5.14 0.03.03.03.04 4.03.82 4.37 1.78 88. ^ Default in terms of repayment of principal and interest – NIL.06 1.07 2.50 NOTE 9: TRADE PAYABLES Trade Payables (Including Acceptances): (Refer Note 38 for details of dues to Micro.Notes to Financial Statements NOTE 8 : SHORT TERM BORROWINGS (a) Loan repayable on demand from banks ^ Secured Cash Credit Accounts # Unsecured Overdraft – Current account ## (b) Other loans from banks ^ Unsecured Foreign Currency Loan (Buyers' credit) @ As at 31.50% p.069.89 crores)] # There is no amount due and outstanding to be paid to the Investor Education and Protection Fund as at 31st March.30 0.89 931.13 94.88 4.04 4.56 222.2011 931.

08 0.33 91.36 11.20 10.51 28.58 1.65 0.03 35.43 0.85 6.99 18.43 56.25 0.25 4.03.07 310.85 0.80 449.82 98.15 0.99 504.10 39.10 21.20 1.25 18.11 66.49 Scientific Research: 0.50 24.01 461.25 0.65 15.94 421.30 0.11 during Adjustments the year As at 31.78 10.81 Notes to Financial Statements Assets given on Operating Lease : Tinting systems 8.10 Leasehold improvements 5.NoTE 11 : FIXED ASSETS (` in Crores) Gross Block Additions Deductions/ As at during Adjustments 31.18 92.38 2.39 878.45 Office Equipment 11.45 1.06 33. Intangible Assets : 10.18 0.27 640.84 94.38 3.12 As at 01.13 10.40 0.45 543.08 2.82 11.59 3.08 1.08 12.54 Trademark 11.73 0.67 (0.057.19 0.057.17 Leasehold Land 95.80 2.52 0.65 3.12 the year As at Additions Deductions/ 01.87 0.01 0.25 0.09 1.34 0.659.51 0.65 0.94 5.22 Furnitures and Fixtures 29.58 4.04.27 6.53 7.10 0.43 6.55 3.92 11. Tangible Assets : 0.09 4.59 592.25 0.62 1.12 31.22 Asian Paints Limited Annual Report 2011-2012 Previous year 1.19 10.88 28.25 47.44 66.611.12 543.30) 18.32 0.59 41.74 0.10 Vehicles 1.66 3.21 2.18 Freehold Land 92.06 2.12 92.01 1.17 95.06 78.611.05 0.17 92.11 Depreciation/Amortisation Impairment Net Block As at 01.038.37 1.04.50 8.48 37.38 Equipment 33.06 Total Tangible Assets 1.30 30.65 0.03.35 32.16 321.04 1.01 7.29 18.92 Computer Software 46.91 445.11 A.08 Buildings 387.97 2.90 0.04.02 2.28 3.18 91.12 As at As at 31.50 27.23 B.96 11.51 0.13 6.70 0.25 13.194.79 1.67 0.37 Plant and Equipment 852.39 1.98 0.35 10.03.54 1.10 0.53 51.63 0.19 1.01 0.36 8.98 987.64 0.590.62 1.81 1.92 35.26 12.55 0.39 47 .11 Additions Deductions/ during Adjustments the year As at 31.95 16.85 1.12 1.99 Total (A+B) 1.19 Computer Software Total Intangible Assets 57.01 3.22 68.92 1.61 384.009.08 4.89 0.35 21.14 2.89 92.92 11.03.28 0.15 18.14 1.65 Buildings 37.07 Scientific Research : 10.14 389.553.78 473.03.65 7.20 4.77 14.79 1.24 7.

(f) AP Coatings Ltd.76 (iii) other Entities SKH Metals Ltd.79 145.00. (1.45.500/. (e) Multifacet Infrastructure (India) Ltd.01 0.50.000 (50.(Previous year ` 39. Unquoted Trade Investments: 12..03 0.03 0.45 113. Mauritius.000) NPR 10/10/10/10/0.50. Face value (`) As at 31.00.12 0.05 0.05 Asian Paints (International) Ltd. A.93% Rural Electrification Corporation Ltd.07 (14.838 shares allotted during the year) 48 . 0.50.00.270) 0.05 (d) Maxbhumi Developers Ltd.04) 99.63 30.25. Less: Provision For Diminution (a) Investment in Equity Shares (a) Asian Paints Industrial Coatings Ltd.500 10/0.000 6.Notes to Financial Statements (` in Crores) NoTE 12 : NoN-CURRENT INVESTMENTS I.900 2.25 62.) (13.78.830 4.88 14.46.84. of which 5.92.476 1.22.000 shares allotted during the year) 14.07 (14.2011 Investment in Equity Shares (a) Patancheru Enviro-tech Ltd.000 50.49 0. (i) (b) other Investments: Subsidiary Companies 3.476 units allotted during the year) (c) Investment in Government Securities National Savings Certificates.000 2.22.13 14.03.000 1. (b) Asian Paints PPG Ltd.52 10/100/10/0. (1.444 10/US $ 1 30.50 210.500/-)] Total Non-Current Unquoted Investments (I) 222.000 shares allotted during the year. (b) SIPCOT Common Utilities Ltd. [Refer Note 47 (a)] (6.05 65.04.03 (c) Asian Paints (Nepal) Pvt.01 0.25. Ltd.000 10/10/14.000/12.50 144.50. tax free bonds 2022..05 0.63 1. Nepal 10.000 shares allotted for consideration in kind) (ii) Joint Venture (a) Asian PPG Industries Ltd.40 * * 1.770 50.03.25.04) 99.63 0.12 0.03 0.2012 As at 31.01 0.48 Nos. Indira Vikas Patra and Defence Certificates deposited with Government authorities [` 39. (b) Investment in Debt Instruments 7.39.108 (4.45 113.53 B. (Previously known as Bharuch Eco-Aqua Infrastructure Ltd. (c) Narmada Clean Tech Ltd.05 0.

03) 153.16 24.22 4.69 61.CENVAT credit receivable . Face value (`) (` in Crores) As at As at 31.03.00 11.83 218. Quoted other Investments (i) Investment in Equity Shares Akzo Nobel India Ltd.00.12 0.Maxbhumi Developers Limited (Wholly owned subsidiary) ii) Advance contribution to Providend Fund trust iii) Advance contribution to Superannuation Fund trust (d) Other loans and advances i) Advances/claims recoverable in cash or in kind ii) Advance payment of Income Tax (Net) iii) Balances with Government authorities .46 Short Term As at As at 31.10.31 1.65.Plan B .79 C.Service tax credit receivable iv) Advances to employees Unsecured and Considered doubtful: other loans and advances Advances/claims recoverable in cash or in kind Less: Provision for doubtful advances/claims recoverable in cash or in kind Long Term As at As at 31.48 13.00 10.12 100.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements NoTE 12 : NoN-CURRENT INVESTMENTS (Contd.00.000 3.68) 84.12 0.03.03.43 20.] Housing Development Finance Corporation Ltd.00.22 210.79 24.Growth HDFC Fixed Maturity Plan 370D March 2011(5) .61 Nos.97 4.2011 20.98 23.03.00 56.93 6.03.23 311.30 0.00. B.97 31.00 10.) II.30 0.75 14.03 (2.69 2.78 1.2012 31.000 10/10/10/10/- 5.418 10/2/10/- 41.08 10.43 279.35 0. 49 .23 2. (` in Crores) NoTE 13 : LoANS AND ADVANCES A.00. (ii) Investment in Mutual Funds Canara Robeco Fixed Maturity Plan Series 6-13 Month .000) (1.Growth Series XVI UTI Fixed Term Income Fund Series XI-II (400 days) Growth JP Morgan Fixed Maturity Plan Series 6 Growth Total Non-Current Quoted Investments (II) Total Non-Current Investments (I) + (II) Aggregate market value of Non-Current Quoted Investments: Figures in brackets indicate that of previous year. # Secured against bank guarantee.2011 111.21 30.34 14.626 4.00 61.79 2.01 (1.36 1.000) 50.2012 31.99 153. Apcotex Industries Ltd.43 206.67 112.00.68 (2.Interest free loan .00. Secured and Considered good: Capital Advances # Unsecured and Considered good: (a) Capital Advances (b) Sundry deposits (c) Loans and advances to related parties i) Amount due from subsidiaries .78 97.01 41.46 17.34 311.03.51 97.16 84.000 1.2012 31.2011 12. [Formerly ICI (India) Ltd.

03.000) (50.00 10.00.00.00 5.00.000) (1.000 units matured during the year) Nos.00.000 units matured during the year) RELIGARE Fixed Maturity Plan .00 10.00.00 5.00.00.00.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 51 .000) (50.00.00.00. Face value (`) As at 31.000) (1.00.00 50 .000 units matured during the year) IDFC Fixed Maturity Yearly Series 33 .000) (50.00.00.00.00.00.Series 1 Growth Plan (2.00.000) (1.00.00.00.000) (50.00.2011 (50.00.13 Months Plan C (50.00 10.00.000) (50.00 10.000 units matured during the year) SUNDARAM Fixed Term Plan AV 366 Days Growth (50.00 20.000 units matured during the year) IDFC Fixed Maturity Yearly Series 35 Growth (50.XIV .00.00.000) (1.00.00.00.00.00.Series 71 .00.000) 10/- - 5.00.00.00.00 10.000) (1.00.00.00.00 5.00 5.Growth (50.00.00.1 Year Plan A Cumulative (1.Growth (1.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 55 .000 units matured during the year) SUNDARAM Fixed Term Plan Series Y .Growth Plan (1.03.000) (1.00 5.00.00.Growth (50.00.000 units matured during the year) KOTAK Fixed Maturity Plan Series 6 .000) (50.000 units matured during the year) IDFC Fixed Maturity Yearly Series 36 Growth (1.00 10.00 10.00.00.XVI-Series 1 .00.000) (1.00.00 10.00.000 units matured during the year) BIRLA SUN LIFE Fixed Term Plan Series CK Growth (1.000 units matured during the year) SUNDARAM Fixed Term Plan AN 367 Days (50.00.000) (1.Notes to Financial Statements (` in Crores) NoTE 14 : CURRENT INVESTMENTS Quoted Investments in Mutual Funds: ICICI Prudential Fixed Maturity Plan Series 51-15 Months Plan E (50.00.000 units matured during the year) RELIGARE Fixed Maturity Plan Series V Plan A 368 Days Growth Plan (1.Growth (50.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 55 .00.00.00 5.000) (1.00.000 units matured during the year) SUNDARAM Fixed Term Plan AO 367 Days (50.000) (1.000 units matured during the year) UTI Fixed Maturity Plan-Yearly Fixed Maturity Plan Series Institutional Growth(12/10) (50.00 10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/- 5.00.000 units matured during the year) DWS Fixed Term Fund .2012 As at 31.Series II Plan B 15 Months -Growth (50.000 units matured during the year) RELIANCE Fixed Horizon Fund .000 units matured during the year) BIRLA SUN LIFE Fixed Term Plan-Series CM Growth (1.00.00 10.000 units matured during the year) RELIANCE Fixed Horizon Fund .00.00.00.00.000) (50.00.00.00 5.00.00 5.00 10.000 units matured during the year) SUNDARAM Fixed Term Plan AW 366 Days Growth (1.000) (2.000) (50.000) (50.1 Year Plan B Cumulative (1.00.

000) (1.Growth Plan (1.00.00 10.I (367 Days) .000) (1.00.000) (50.00.00.000) (1.00.00.00.00.00.370 Days .00.000 units matured during the year) SUNDARAM Fixed Term Plan BA 366 Days Growth (1.00 10.00 5.00.00 Face value (`) As at 31. (1.00.000 units matured during the year) KOTAK Fixed Maturity Plan Series 40 .000 units matured during the year) RELIGARE Fixed Maturity Plan Series VI .000) (1.00 5.000) (1.Yearly Series 42 .00.000 units matured during the year) RELIGARE Fixed Maturity Plan-Series V .00.00.00 10.1 Year Plan B Cumulative (50.000 units matured during the year) IDFC Fixed Maturity Plan .00.000) (1.00 5.000) (1.Growth (1.00.00.000) (1.00.Growth (50.000 units matured during the year) RELIGARE Fixed Maturity Plan Series VI .00.00.Growth (1.00.00 10.03.00.00.00.Growth (1.000) (50.00.00.00.00.000 units matured during the year) IDFC Fixed Maturity Yearly Series 37 .000 units matured during the year) KOTAK Fixed Maturity Plan Series 37.Yearly Series 41 .00.Growth Plan (50.000 units matured during the year) SUNDARAM Fixed Term Plan AX 366 Days Growth (50.00.00 10.00.00 10.00.00.000) (50.00.000 units matured during the year) UTI Fixed Term Income Fund Series IX .00.00.000) (50.Plan B .00.000) (1.Growth CANARA ROBECO Fixed Maturity Plan Series 6 13 Month .00 10.00.00.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 56 .Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements (` in Crores) NoTE 14 : CURRENT INVESTMENTS (Contd.000 1.000 1.00 51 .Growth (1.00.Series XVI Nos.00.370 Days .00.00.00.10.00 10.00.00.Plan E-367 Days .00.00.00 20.00.00.2012 As at 31.000 units matured during the year) TATA Fixed Maturity Plan Series 31 Scheme C .Growth (50.000 units matured during the year) UTI Fixed Term Income Fund Series VII .000 units matured during the year) KOTAK Fixed Maturity Plan Series 42 .00 5.000 units matured during the year) IDFC Fixed Maturity Plan .00 10.00.00.Plan E 370 Days .000 10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10.00.Growth (1.00.00.2011 10.00.10.00 10.Plan D .Growth HDFC Fixed Maturity Plan 370D March 2011(5) Growth .00.00.00 5.000 units matured during the year) IDFC Fixed Maturity Plan Yearly Series 53 .00 5.00.000 units matured during the year) BIRLA SUN LIFE Fixed Term Plan Series CW Growth (1.00 10.00.) JM Fixed Maturity Fund Series XIX Plan A-Growth Plan 412 (1.Growth (1.00 11.00.00.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 56 .1 Year Plan A Cumulative (1.V (366 Days) (2.10 Growth (1.00.00.000) 1.000) (1.000 units matured during the year) SBI Debt Fund Series .000) (1.03.000) (50.00.00 10.00.Growth (50.000) (50.00.000) (2.

000 50. 1.00 10.000 50.00 As at 31.00.00.00 5.000 1.00 52 .00.00 5.00.00.00.00.00 5.Growth BIRLA SUN LIFE Fixed Term Plan Series EE Growth TATA Fixed Maturity Plan Series 38 Scheme 1 .00.000 1.000 50.00.00 5.000 50.000 Face value (`) 10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/As at 31.00.00.Growth Plan ICICI Prudential Fixed Maturity Plan Series 60 1 year Plan F Cumulative SUNDARAM Fixed Term Plan CC 366 days Growth KOTAK Fixed Maturity Plan Series 68 .000 50.00 5.00. Nos.PLAN C (368 DAYS) Growth DSP BLACK ROCK Fixed Maturity Plan Series 34 12 Month Growth IDFC Fixed Maturity Yearly Series 48 Growth HDFC Fixed Maturity Plan 370D FEB12 .00.Notes to Financial Statements (` in Crores) NoTE 14 : CURRENT INVESTMENTS (Contd.00.00 5.000 50.00 5.000 1.00 5.00 5.000 1.00.00.Growth (3) Series XXI Growth Total Quoted Current Investments 1.00 5.000 50.Series 6 Growth RELIANCE Fixed Horizon Fund-XXI .03.000 50.000 50.00 10.00 4.00.1 year Plan B cumulative RELIGARE Fixed Maturity Plan Series X11 .00.00.Growth TATA Fixed Maturity Plan Series 39 Scheme A .00 10.00 263.00.000 50.00.00.00.00.03.000 50.00 5.Series 94 .00.00 5.000 50.00 5.000 50.13 .Growth (2) Series XXI Growth DWS Fixed Maturity Plan Series 5 Growth Plan KOTAK Fixed Maturity Plan Series 75 .00.00 10.Growth BIRLA SUN LIFE Fixed Term Plan Series EI Growth BIRLA SUN LIFE Fixed Term Plan Series EM Growth ICICI Prudential Fixed Maturity Plan Series 62 .Growth TATA Fixed Maturity Plan Series 39 scheme D .00 5.00.00.Growth Plan IDFC Fixed Maturity Plan Yearly Series 54 Growth IDFC Fixed Maturity Plan Yearly Series 57 Growth DWS Fixed Term Fund .00 5.00.00 5.Series X-VIII (368 Days) Growth RELIANCE Fixed Horizon Fund-XXI .Growth TATA Fixed Maturity Plan Sereis 39 Scheme E .00.Growth DSP BLACK ROCK Fixed Maturity Plan .000 40.00.00.00. Figures in brackets indicate that of previous year.00.000 50.00 5.2011 341.000 40.00 5.000 50.00 5.16 .00 5.00 4.000 1.00 5.00.Growth UTI Fixed Income Fund.00.00 5.00 5.00 5.00 20.00 10.00 5.000 50.000 50.000 1.00.00.) ICICI Fixed Maturity Plan Series 56 1 Year Plan E Cumulative SUNDARAM Fixed Term Plan BN 366 days Growth IDFC Fixed Maturity Plan Yearly Series 52 Growth SUNDARAM Fixed Term Plan CA 366 days Growth RELIGARE Fixed Maturity Plan Series X Plan E (371 Days) .000 50.000 50.Growth SUNDARAM Fixed Term Plan CJ 366 Days Growth ICICI Prudential Fixed Maturity Plan Series 61 .000 50.00 10.00 5.000 50.Series 8 Growth DSP BLACK ROCK Fixed Maturity Plan Series 31 12 Month Growth HDFC Fixed Maturity Plan 370D FEB12 .000 50.00.1year Plan A cumulative DSP BLACK ROCK Fixed Maturity Plan Series 32 12 Month Growth UTI Fixed Term Income Fund-Series X .00.000 50.2012 10.000 50.VII (368 Day) SBI Debt Fund Series .367 Days .000 50.00.00 5.00.Series 23 -12 Month .000 50.00.000 50.000 2.00.00.Growth SBI Debt Fund Series-367 Days .

42 (` in Crores) As at 31.22 47.21 85.18 27.98 51.00 124.03 1.56 (` in Crores) As at 31.29 509.10 4.93 362.66 476.86 22.03 538.77 500.32 50.13 17.74 4.264.56 371.03 4.03.97 10.75 687.84 539.71 4.03.66 0.76 (` in Crores) As at 31.66 17.50 57.02 9.02 504.21 0.53 0.75 500.65 6.73 355.03.2011 NoTE 16 : TRADE RECEIVABLES Unsecured (a) Overdue for more than six months Considered good Considered doubtful (b) Others Considered good Considered doubtful As at 31.97 499.2011 0.97 416.17 1.02 353.01 53 .99 4.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements NoTE 15 : INVENToRIES (a) Raw materials Raw materials-in-transit (b) Packing materials (c) Finished goods Finished goods-in-transit (d) Work-in-progress (e) Stores.24 1.2012 388.071.2012 0.75 457.26 4.30 27.03.2011 330.71 8.03.58 0.91 0.49 500.77 687.53 11.83 28. Cash and Cash equivalents (a) Cash on hand (b) Balances with Banks: (i) Current Accounts (ii) Cash Credit Account (iii) Cheques on hand (iv) Deposit with bank (c) Investment in liquid mutual funds # (d) Others Investment in Fixed Deposit : Housing Development Finance Corporation Limited B. spares and consumables (f) Stock-in-trade (acquired for trading) As at 31.06 27.93 Less: Provision for doubtful trade receivables NoTE 17 : CASh AND BANK BALANCES A.02 0.29 6. Other Bank balances (i) Margin money deposit (ii) Unpaid dividend As at 31.2012 0.36 353.03.08 69.19 4.00 0.

667.948.901 units sold during the year) IDFC Money Manager Fund .320 10/100/10/1.47.06 97.13 units sold during the year) RELIGARE Ultra Short Term Fund .81 38.03.31 331.766.882 2.45.82.00 5.966 8.42 49.89 units sold during the year) CANARA ROBECO Treasury Advantage Super Institutional Growth Fund (47.77.Treasury Advantage Plan Wholesale Daily Dividend TEMPLETON India Ultra Short Bond Super Institutional Growth (Quoted during the year) TATA Fixed Income Portfolio Fund C2 Institutional Growth HDFC Liquid Fund .36.Growth IDFC Ultra Short Term Fund Growth RELIANCE Liquidity Fund Growth Option Nos.00 108.000/10/1.221) (47.34.414) (27.03 14.271 units sold during the year) UTI Treasury Advantage Fund-Institutional Plan Growth Option (98.783 units sold during the year) KOTAK Floater Long Term-Growth (3.47.14 40.70.98 5.55 10.84.44.676) (3.13.19.28.Growth (2.19 13.33 371.43.80.414.126 1.01 77.80.51.221.521 60.568.Super Institutional Plan C .525 7.607 units sold during the year) SBI-SHF-Ultra Short Term Fund-Institutional Plan Growth (3.Institutional Preminum Plan Dividend JM High Liquidity Fund .84.84.05 units sold during the year) BIRLA SUN LIFE Short Term Opportunities Fund -Institutional Growth (89.05. Face value (`) As at 31.Notes to Financial Statements (` in Crores) # Investment in liquid mutual funds Unquoted Investments in Mutual Funds: BIRLA SUN LIFE Savings Fund .43.051.Treasury Plan .016) (3.58 45.00 54.74.99.368.2012 As at 31.91.05.03.03 476.000/100/10/10/10/10/10/10/10/10.80.93 476.03 48.88 14.568) (2.53 50.Premium Plan .211 5.Growth (32.66.766) (1.Institutional Growth Plan BIRLA Cash Plus .075) (7.37.70.25 69.66.368) (98.075.64.12.51.676.051) (89.00 23.00.764 2.948) (32.547 units sold during the year) SUNDARAM Ultra Short Term Fund Super Institutional Growth (1.80.24.924 units sold during the year) TATA Floater Fund .36.721.21.000/10/10/10/10/10/10/10/1.18.654 units sold during the year) BIRLA SUN LIFE Short Term Fixed Maturity Plan Series 29 Growth UTI Money Market Fund .64.93 54 .2011 (2.44.07.37.831 units sold during the year) ICICI Prudential Flexible Income Plan Premium Growth (27.24.000 48.Institutional .721) 1.Super Institutional Plan Quoted HDFC Cash Management Fund .667) (6.47 93.18.661 units sold during the year) TEMPLETON India Ultra Short Bond Super Institutional Growth Plan (7.04 7.Institutional Growth (2.93.80 3.23 10.041 47.74.Growth (6.016.00.91.

03.03 0.14 28.41 0.17 69.72 1.03.29 4.2011 0.25 4.16 8.58 10.2012 0.74 0.957.44 65.81 32.76 23.01 6.46 8.65 10.66 9.747.98 284.05 Year 2011-12 Year 2010-11 55 .60 2.58 9.01 91.27 As at 31.13 7.29 371.37 0.93 6.201.84 31.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements (` in Crores) NoTE 18 : oThER CURRENT ASSETS Interest accrued on investments Period end quantity discount receivable Royalty receivable Income tax refund receivable Due from Subsidiaries Due from Joint Venture Duty Drawback receivable Insurance claim receivable Unamortised premium on forward exchange contracts As at 31.917.64 4.693.17 12.48 9.064.14 7.031.72 15.08 0.45 (` in Crores) NOTE 19 : REVENUE FROM OPERATIONS (a) Sale of products: Home Market (Net of Returns) Exports Turnover Less: Discounts Sale of products (Net of Discounts) (b) Revenue from services: Revenue from Home Solutions operations (c) other operating revenues: Processing and service income Scrap sales Lease rent 34.27 0.170.20 1.30 4.08 39.46 4.88 1.30 95.

20 4.85 627.40 (` in Crores) Year 2010-11 0.24 5.01 74.90 20.03 27.05 crores (Previous year ` 0.03 600.Other investments (ii) From Current investments 4.56 31.92 105.07 15.49 # As at 31 March.18 4.56 416.481.49 36.18 3.83 4.95 28. (` in Crores) NoTE 21: (A) CoST oF MATERIALS CoNSUMED Raw Materials Consumed Opening Stock Add: Purchases Less: Closing Stock Packing Materials Consumed Opening Stock Add: Purchases Less: Closing Stock ToTAL CoST oF MATERIALS CoNSUMED (B) PURCHASES OF STOCK-IN-TRADE 27.76 crores) (e) Profit on sale of long term investments (Net) # (f) Profit on sale of short term investments (Net) (g) Profit on sale of fixed assets (Net) (h) Net gain on foreign currency transactions and translations (Other than considered as finance cost) (i) Other non-operating income st Year 2011-12 1.722.681.53 57.37 457.19 4.023.Notes to Financial Statements NoTE 20 : oThER INCoME (a) Interest (Refer Note 37) (i) (ii) From Current investments From others [TDS ` 0.065.02 3.03 1.87 0.45 1.92 Year 2011-12 Year 2010-11 56 .75 699.74 120.18 610.081.78 0.52 0.66 5.498.10 crores)] (b) Insurance claims received (c) Dividend received (i) From Non-Current investments . these long term investments are classified under Current investments as their maturity period is less than 12 months.47 32.92 727.83 27.05 crores)] .03 700.46 0.10 3.04 36. 2011.42 (d) Royalty (TDS ` 3.218.03 16.previous year ` 2.90 0.00 3.From subsidiary companies (Refer Note 39) [(TDS ` 0.00 3.54 280.39 141.79 14.85 1.49 2.10 416.10 crores (Previous year ` 0.07 crores .41 16.

23 24.11 448.07) 539.61) (` in Crores) NOTE 22 : EMPLOYEE BENEFITS EXPENSE Salaries and wages Contribution to Provident and other Funds (Refer Note 45) Staff welfare expenses Year 2011-12 293.99 Year 2011-12 Year 2010-11 57 . WORK-IN-PROGRESS AND SToCK-IN-TRADE Stock at the beginning of the year Finished Goods Work-in-Progress Stock-in-trade Total Stock at the end of the year Finished Goods Work-in-Progress Stock-in-trade Total Changes in inventories Increase/(Decrease) in Excise duty on finished goods CHANGES IN INVENTORIES OF FINISHED GOODS.53 (157.51 8.61 23.79 341.63 Year 2010-11 257.93 (140.86 9.) (C) CHANGES IN INVENTORIES OF FINISHED GOODS.22 25.86 9.50 57.54) 16.53 401.13 18.50 57.03 750.10 300.71 (115.98 51.45 539.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements (` in Crores) NoTE 21 (Contd.17 606.31 (143. WORK-IN-PROGRESS AND SToCK-IN-TRADE 687.17 606.30 11.37 39.78) 28.

57 33.99 65.56 50.18 11.22 282.18 19.50 58 .69 10.67 5.59 369.70 2.96 (1.49 26.35 34.50 338.56 2.70 (` in Crores) Year 2010-11 24.68 1.87 1.10 62.67 8.17 1.43 (0.50) 0.33 9.99 0.69 1.98 41.13 19.90 8.16 8.34 31.70 41.11 0.70 24.63 4.29 49.Notes to Financial Statements NOTE 23 : OTHER EXPENSES Consumption of Stores.542.67 1.34 0.58 11.03 2.72 18.19 0.18 6.82 1.88 0.19) 53.55 269.87 1.89 0.36 14. stationery and communication expenses Travelling expenses Donations Commission to Non-Executive Directors Directors' sitting fees Auditors' remuneration (Refer Note 26) Bank charges Net loss on foreign currency transactions and translations (Other than considered as finance cost) Premium on forward exchange contract amortized Information technology expenses Legal and professional expenses Training and recruitment Freight and handling charges Advertisement and sales promotional expenses Cash discount Bad debts written off Provision for doubtful debts and advances Loss on sale of fixed assets (Net) Miscellaneous expenses Year 2011-12 23.42 346.231.48 74.25 1. spares and consumables Power and fuel Processing charges Repairs and Maintenance: Buildings Machinery Other assets Rent Rates and taxes Water charges Insurance Printing.79 34.61 17.25 0.86 72.14 6.35 291.

03.38 As at 31.15 7.03.33 130.07 109. 63.43 1.84 0.70 (` in Crores) As at 31.60 63.) (` in Crores) 31 21.2011 298. 2.03. limited to: The Company has also issued a letter to the board of a subsidiary informing its commitment to continue extending letters of comfort for banking facilities as included in the above for a period upto 15th May.54 11.2011 5.2012 2.69 3.49 207.2012 341.` 93. 3.54 Currency As at 31. Claims against the Company not acknowledged as debts i.11 (` in Crores) As at 31.11 59 .09 0.96 59.80 24.16 30.03.11 4. The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments.49 crores on account of interest on short payment of advance tax and ` 0.40 crores (Previous year .03. 2013.22 1. Contingent Liabilities Guarantee given on behalf of Company’s dealers in respect of loans granted to them by a bank for acquiring dealer tinting systems.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements (` in Crores) NoTE 24: FINANCE CoSTS Interest on Bank borrowings Interest on Bill discounting Interest on Foreign Currency Loans Net loss on Foreign Currency Transactions and Translations (Buyers’ Credit) Other Interest * Total 2011-2012 0.23 0. Corporate guarantees issued by the Company to certain banks on behalf of some of its subsidiaries (converted to Letter of Comfort/ Support during the year) Letters of comfort/support to banks on behalf of some of its subsidiaries. Others As at 31. Estimated amount of contracts remaining to be executed on capital account and not provided for Letters of Credit and Bank guarantees issued by bankers and outstanding as on 31st March. The Company does not enter into any derivative instruments for trading or speculative purposes.84 0.82 2010-2011 0.32 10.21 3. The forward exchange contract outstanding as at 31st March.06 1.05 crores)] 3. [Pertaining to capital goods in current year .19 2010-2011 0.00 crores) NoTE 25: CoNTINGENT LIABILITIES AND CoMMITMENTS a) 1.` 0.39 (` in Crores) USD USD NoTE 26: AUDIToRS’ REMUNERATIoN Statutory audit fee Taxation matters Certification fees and other services For reimbursement of expenses Total 2011-2012 0.81 54.2011 Number of Buy Indian Rupee Contracts Amount Equivalent (USD in mn. Tax matters in dispute under appeal ii. 2.12 15. 2012 is as under:Currency As at 31.15 0. 2012.03 1.06 0.) (` in Crores) 16 2.03.63 6.86 b) Commitments: 1.35 * Note: Other interest includes ` 0.22 crores on account of completion/disposal of various income tax assessments/appeals during the year (Previous year ` 3.2012 Number of Buy Indian Rupee Contracts Amount Equivalent (USD in mn.69 162.

30 (6. Enamels and Varnishes Others Total As at 31.65 646.22 4. distemper.92) 11.86 143.86 (` in Crores) NOTE 31: CIF VALUE OF IMPORTS a) Raw Materials b) Stores and Spares c) Capital goods d) Others 2011-2012 957.83 0.45 2010-2011 741.01 (548.38 Sales Value 8.20) 9.31 (86.57 179.29 (7.Notes to Financial Statements (` in Crores) NOTE 27: RAW MATERIALS CONSUMED Pigments.67) (` in Crores) opening Inventory 528.91 51.58) 11.57 491.08 (10.62 1.08) 129.2011 56.201.92 (393.22 143. Additives Solvents Resins Oils Ortho Xylene Monomers Others Total 2011-2012 1.67 (409.58 (8.92 NoTE 28: Purchase of stock-in-trade includes putty. Minerals etc.84 315.522. Extenders.17 (8.59 244.064.48) 60 .73 3.2012 49.94 6.24 57.90 (528.03 (9.949. (` in Crores) NOTE 30: STOCK OF WORK-IN-PROGRESS Paints.59 521.61 6. Enamels and Varnishes Others b) Traded Goods Total * Figures in brackets refers to previous year.77 384.26 390.081. colour world machines and other miscellaneous sales promotional items.73 172.53) 9.15 181.03.03.99 146.98) Closing Inventory 676.702.17) 699.54 2010-2011 1.023.37) 232.39 1.11) 548.29 192.30 As at 31.17) 10.098. NoTE 29: SToCK AND TURNoVER a) Products* Manufactured Goods Paints.85 5.68 (166.65 472.

994.60 100.00 16.374 Dividend remitted (` in Crores) 0.023.11 1.48 4.37 14.029.10 20.08 crores) d) Other receipts including recoveries from subsidiaries Total 2011-2012 21.081.76 3.84 2.25 2010-2011 23.05 16.26 4.92 1.914 Dividend remitted (` in Crores) 0.07 0.58 74.346.54 0.81 0.89 24.48 crores) (TDS of previous year .83 23.03 (` in Crores) NOTE 34: EXPENDITURE IN FOREIGN CURRENCY a) Annual maintenance for software b) Professional fee c) Shade cards and other sales promotional items d) Travelling and Training Expenses e) Royalty f) Others Total 2011-2012 1.86 76.53 13.53 7.99 23.92 4.18 42.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements NoTE 32: Value of Imported and Indigeneous Raw Materials and Spares Consumed and percentage of each to Total Consumption: 2011-2012 (` in Crores) % to Total a) Raw materials: Imported Indigenous (including value of consumption of imported raw materials purchased through indigenous sources) Total b) Stores and spares: Imported Indigenous Total 1.36 2.51 3.03 2010-2011 Number of Number of Non-resident Equity Shares Shareholders held 17 17 30.00 NoTE 33: NET DIVIDEND REMITTED IN FoREIGN CURRENCY 2011-2012 Number of Number of Non-resident Equity Shares Shareholders held Final Dividend 2009-2010 Interim Dividend 2010-2011 Final Dividend 2010-2011 Interim Dividend 2011-2012 16 16 29.95 61 .54 6.75 12.63 6.48 25.00 2010-2011 (` in Crores) % to Total 735.56 3.65 22.374 30.` 2.14 100.00 97.15 1.42 100.00 100.40 5.06 2.32 30.76 43.16 0.25 (` in Crores) NoTE 35: EARNINGS IN FoREIGN CURRENCY a) Export of own products at FOB value b) Export of traded goods at FOB value c) Royalty (Includes TDS of ` 2.13 2010-2011 0.00 3.914 29.06 0.40 83.

NoTE 39.02) 32. 2006 Interest accrued and remaining unpaid Interest remaining due and payable even in the succeeding years.02 (0.71 0.71 0.11 crores on account of completion/disposal of various assessments/appeals during the year (Previous year – ` 5. to the extent the Company has received intimation from the “Suppliers” regarding their status under the Act. 2011 3.49 2010-2011 2.23 (` in Crores) b) Capital Expenditure . Interest income includes interest received of ` 1.67 NoTE 37.64 1. along-with the amount of the payment made to the supplier beyond the appointed day during the period Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding interest specified under the Micro.26 3.35 31st March.For Cochin Research and Development activity (Land and civil work) Total 2011-2012 5.11 1.42 4.83 crores received from Asian Paints (International) Ltd.17 0. 2012 3.22 5.24 (` in Crores) 2010-2011 18.73 0.89 0. Disclosure under the Micro.01) 37.08 (0.18 1.92 0. Small and Medium Enterprises Act.05 crores) NoTE 38. 62 . 2006 are provided as under for the year 2011-12.41 1.19 1.For Turbhe Research and Development facility . Dividend received from subsidiary companies includes ` 15. The Company does not enter into any derivative instruments for trading or speculative purposes. The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. Small and Medium Enterprises Development Act.42 4.Notes to Financial Statements NoTE 36: The Company has incurred following expenditure on Research and Development a) Revenue Expenditure Employee Cost Depreciation on Equipment and Building Travelling Expenditure Testing and Laboratory Expenditure Power and fuel Stores and Spares Repairs and Maintenance Materials Consumed Others Foreign Exchange (gain)/loss Total 2011-2012 22. Mauritius (wholly owned subsidiary of the Company) (Previous year – NIL) NoTE 40. This has been relied upon by the auditors.45 0.15 5. 2006. Small and Medium Enterprises Development Act.57 0.76 6. until such date when the interest dues as above are actually paid to the small enterprises - - - - Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.81 - (i) (ii) (iii) (iv) (v) (vi) Principal amount remaining unpaid (but within due date as per the MSMED Act) Interest due thereon remaining unpaid Interest paid by the Company in terms of Section 16 of the Micro.65 0. (` in Crores) 31st March.

50 9.29 Relationship Wholly Owned Subsidiary Amount outstanding as at 31.21 (14.36 0. b) i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years Total The information pertaining to future minimum lease rentals receivable is based on the lease agreements entered into between the Company and the dealers and variation made thereto.26 33.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements The foreign currency exposure not hedged as at 31st March. Lease rentals are payable monthly by the dealers. the disclosure relating to provisions made in the accounts for the year ended 31st March. A refundable security deposit is collected at the time of signing the agreement.16) Maximum balance outstanding during the year* 14.67 Receivable (In millions FC) 2011-12 2010-11 6. a) Pursuant to Accounting Standard (AS 19) – Leases. 2012 is as follows: (` in Crores) Provision for Excise * 2011-2012 2010-2011 1. 2012 are as under: Currency Payable (In millions FC) 2011-12 2010-11 29.19 0.34 0. the following information is given: The Company has provided tinting systems to its dealers on an operating lease basis.15 Provision for Sales tax * 2011-2012 2010-2011 8.11 1.72 107.28 8.05 0.14 2.09 0.96 0.35 176. Lease rentals are reviewed periodically taking into account prevailing market conditions.64 15.93 1.76 0.08 0.07 0. Future minimum lease rentals receivable as at 31st March.20 0.21 (14.03. (Previous year – NIL) The initial direct cost relating to acquisition of tinting system is capitalised.04 0.31 1.99 6. depreciation and impairment is given in Note 11 of Notes to Accounts. The information on gross amount of leased assets.03.16) * Figures in brackets refers to previous year.31 0.26 0.98 1.15 1.31 1. Contingent Liabilities and Contingent Assets. NoTE 42: Disclosure as per Clause 32 of the Listing Agreement entered into with the Stock Exchanges: Loans and advances in the nature of loans given to subsidiaries.72 6. 2012 as per the lease agreements: As at 31.25 1.04 (0.05 0. 63 .12 0.10 0.2012* 14.10 0.25) 1.20 (` in Crores) As at 31.26 118.01 0.42 5. The lease period varies between four and ten years.19 1.61 8. associates and others and investment in shares of the Company by such parties: Name of the party Maxbhumi Developers Limited NoTE 43: I.03 Receivable (` in Crores) 2011-12 2010-11 32.98 0.2012 0.25 USD EUR SGD GBP SEK Others NoTE 41: Pursuant to the Accounting Standard (AS 29) – Provisions.03.95 8.34 0. c) d) e) Total amount of contingent rents recognised as income – NIL.60 0.61 Opening Balance Additions Utilizations Reversals Closing Balance * Excise and sales tax provisions made towards matters disputed at various appellate levels.05 1.99 26.28 Payable (` in Crores) 2011-12 2010-11 151.01 0.68 24.2011 0.82 24.03 0.

07 3.73 (192.53 11.20 11.10 Pension (Unfunded Plan) 31. NoTE 45: Employee Benefits (1) Short term employee benefits: The liability towards short term employee benefits for the year ended 31st March.04 (-) (-) (-) (-) (-) (-) * Figures in brackets indicate that of previous year.22 3.17 1.11 1.11 0.03.53 7.71) (1. Asian Paints PPG Ltd.96 6. 2012 is as follows: % of Shareholding 50% 50% (` in Crores) Name of the Company Asian PPG Industries Ltd.03. Amount of interest based on accounts for the year ended 31st March.18 3. (2) Post-employment benefits: The following disclosures are made in accordance with AS 15 (Revised) pertaining to Defined Benefit Plans: (a) Gratuity.12 Amount recognised in Balance Sheet Present value of funded obligations Fair value of plan assets Present value of unfunded obligations Net Liability/(Asset) Amounts in Balance Sheet Liability Assets Net Liability/(Asset) 84.S.21 330..27 1. 2012 has been recognised in the Statement of Profit and Loss.14 31.27 1.10 8.12 3.15 (80.07 3. 2012 as per the lease agreements: (` in Crores) i) ii) iii) c) Not later than one year Later than one year and not later than five years Later than five years Total 2011-2012 4.11 3. NoTE 44: Pursuant to Accounting Standard (AS 27) – Financial Reporting of Interests in Joint Venture.A.07 3. (both hereinafter referred to as JV) are as follows: a) b) The proportion of interest of the Company in the JV is by way of equal equity participation with PPG Industries Securities Inc.73 Lease payments recognised in the Statement of Profit or Loss for the period are ` 5.13 crores.18 (` in Crores) Post Retirement Medical Benefit (Unfunded Plan) 31.Notes to Financial Statements II.49 2010-2011 4. The lease rentals are payable by the Company on a monthly or quarterly basis.03.03.29 344.02 0.14 4.18 3.11 77.78 crores).22) 0.07 31.03. (Previous year ` 4.18 3.68) (278.. the disclosures relating to the two Joint Ventures viz.22) 8.17 1.27 64 . Pension and Post Retirement Medical Benefit Plans : Gratuity (Funded Plan) 31. c) No contingent liabilities and capital commitments have been incurred as at 31st March. 2012* Assets Liabilities Income Expenditure Contingent Capital Liabilities Commitments 239.71 121.12 31. 2012 in relation to the Company’s interests in the JV along with the other venture (Previous year ` Nil).01) 4.03.81 11.14 4.27 1. computers and systems hardware on an operating lease basis.32 (69.17 1.87) (6.17 1. Future minimum lease rentals payable as at 31st March. The aggregate amount of interests in the JV as at 31st March.03) (86.96) (295. Asian PPG Industries Limited and Asian Paints PPG Ltd.10 8. U. a) b) The Company has taken certain assets such as cars.

09 0.07 0.27 0.03.30 - 0.42) 3.03.15) 12.09 0.35% 31.42) - 1.10 68.93 (4.50 5.10 (8.59 (10.15 69.03.32 13.05) - Experience Adjustments for the current and previous four periods 31.42 5.03.39 5.68) 2.25 0.04 (1.50% 31.22 6.12 8.10 0.11 77.19) (0.19) (0.43 6.13) 3.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements Gratuity (Funded Plan) 31.12 Expense Recognised in the Statement of Profit and Loss Opening defined benefit obligation less benefits paid Current service cost Interest on defined benefit obligation Expected return on plan assets Net actuarial losses/(gains) recognized in year Past service cost Total.15 6.09 (0.03.09 60.05) - 1.03.12 8.44 - 0.13 0.13 (0.05) 1.12 84.35% 31.12 53% 44% 0% 0% 3% 100% 8.05 (0.18 0.18 0.71 (2.55) 69.07 0.03.04 0.43 6.03.27 0.25 0.25 (0.06 0.32 69.42) 3.43) 3.69) 3.50% 31.11 8.03.12 31.03.28 0.32 7.50 57.50% 31.05 (0.01 (4.03.05) 1.96 0.22 0.09 4.50% 8.03.03.46 31.04 0.32 57.04 0.18 0.17 10.64 52.42 5.11 52% 38% 0% 0% 10% 100% 8.22 (8.50% 31.14) 31.02) 0. included in “Employee Benefit Expense” Actual return on plan assets Reconciliation of benefit obligations and plan assets for the Period Change in defined benefit obligation Opening defined benefit obligation Current service cost Interest cost Actuarial losses/(gain) Past Service Cost Benefits paid Closing defined benefit obligation Change in fair value of assets opening fair value of plan assets Expected return on plan assets Actuarial gain/(losses) Contributions by employer Benefits paid Closing fair value of plan assets Assets information Category of assets Government of India securities Corporate bonds Equity shares of Listed Companies Property Others Grand Total Summary of the actuarial assumptions Discount rate Expected rate of return on assets Gratuity ( Funded) Defined Benefit Obligation Plan Assets Surplus/( Deficit) Experience adjustment on plan liabilities Experience adjustment on plan assets 31.11 (0.93 3.22 3.01 68.70) 80.03.59 65 .02) (0.42 (0.25 (0.03.52 9.44) 3.03.52 (8.02 (5.49 31.11 8.12 31.73 50.59 4.09 0.04 0.22 - 77.08 51.11 Post Retirement Medical Benefit (Unfunded Plan) 31.90 (5.67 2.07 0.02 (0.11 (0.11 Pension (Unfunded Plan) 31.03.06 0.06 0.10) 0.15 80.32 31.35% 7.43 (0.42 (0.91) (4.70) 84.14) 0.04) - 0.42) - 3.16 0.71 (6.07) (2.11 7.73) 0.96 (7.55) 77.

12) 0. restricted to Asset recognised in balance sheet 31 March. considered in actuarial valuation. The Provident fund assets and liabilities are managed by ‘Asian Paints Office Provident Fund’ and ‘Asian Paints Factory Employees Provident Fund’.69 crores towards Asian Paints Office Provident Fund during the year ended 31st March. seniority. (This being the first year of valuation. restricted to Asset recognised in balance sheet 31st March. to be adjustable against future contributions.35 crores as advance contribution to ‘Asian Paints Office Provident Fund’ to meet its temporary liquidity requirements.03.Notes to Financial Statements Pension ( Unfunded) Defined Benefit Obligation Plan Assets Surplus/(Deficit) Experience adjustment on plan liabilities Experience adjustment on plan assets Post Retirement Medical Benefit (Unfunded) Defined Benefit Obligation Plan Assets Surplus/(Deficit) Experience adjustment on plan liabilities Experience adjustment on plan assets Notes: i) ii) iii) The gratuity fund assets and liabilities are managed by Asian Paints (India) Ltd. 2012 is given below: (` in Crores) Particulars Present value of benefit obligation at period end Plan assets at period end. the Company’s actuary had expressed an inability to reliably measure provident fund liabilities.14 crores.37) 0. 2012 107. pending the issuance of the guidance note from Institute of Actuaries of India. 2011.03.01 107. 2012. comparatives of previous period is not available.09 1.10 1.17 (1.03.09 31. The Company contributed ` 4. at fair value.18) 0.91 (0.10 3.09 3.03. 2012 and 31st March.17) (0.16) (0. which require interest shortfalls to be recompensed. The Institute of Actuaries of India has issued the final guidance for measurement of provident fund liabilities during the quarter ended 31st December.03.37 (3. are to be considered as defined benefit plans. Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states that benefits involving employer established provident fund.16 (3. promotion and other relevant factors such as supply and demand in the employment market. Till 31st March.08 0.03.11) - (b) Provident Fund: The details of the Asian Paints Factory Employees Provident Fund and plan asset position as at 31st March.27 (1.03. Accordingly the Company was unable to exhibit the related information.) The details of the Asian Paints Office Provident Fund and plan asset position as at 31st March. The Company contributed ` 6. The guidance note on implementing AS 15. The estimates of future salary increases.07 (3.41 (2.26 st 66 . Employees’ Gratuity Fund.11 1.11 3.12 1. at fair value.12 (1.05 31.41) (0. 2012 94.01 31.34) 31. 2012 is given below: (` in Crores) Particulars Present value of benefit obligation at period end Plan assets at period end.14 31.12 3.05) 31.80 31. The actuary has accordingly provided a valuation and based on the below provided assumptions there is no shortfall as at 31st March. 2011 respectively.26 94.03.03.07) 0.27) 0.79 crores towards Asian Paints Factory Employees Provident Fund during the year ended 31st March. The Company estimates that the balance amount to be contributed to the gratuity fund during the financial year 2012-2013 will be ` 4.18) 31.18 (3.01 31. the Company also contributed ` 1.08 2.10 (1. 2012 and 31st March.79 crores and ` 5.62 crores and ` 3. takes into account the inflation.07) 31. During the financial year 2011-2012. 2011 respectively.03.91) (0. 2011.10) (0.

a Composite Scheme of Restructuring has been filed with the Hon’ble High Court of Judicature at Bombay in February. 2010 as a wholly owned subsidiary of the Company.84 crores) NoTE 46: Earnings Per Share 2011-2012 a) b) c) d) e) Basic and diluted earnings per share before exceptional item in rupees (face value – ` 10/. Subsidiary of Asian PPG Industries Ltd: a) Faaber Paints Pvt. 2011). 2012 based on actuarial valuation carried out by using Projected Accrued Benefit Method resulted in increase in liability by ` 2. b) PPG Asian Paints Lanka Pvt.79 crores.per share) Profit after tax and prior period items but before exceptional item as per Statement of Profit or Loss (` in Crores) Profit after tax and prior period items and exceptional item as per Statement of Profit or Loss (` in Crores) Weighted average number of equity shares outstanding 99. The Scheme then provides for the demerger of the Liquid Industrial Paints. Further. 2012 whereby AP Coatings Limited and PPG Coatings India Private Limited (subsidiary of PPG industries Securities Inc.39 958. incorporated in August. the rate of interest declared by Asian Paints Office Provident fund and Asian Paints Factory Employees’ Provident Fund is 8. On 1st June.80% p.79 crores as stated above. (Incorporated in April. pertaining to the Company’s industrial business was transferred to APCL for which the Company was allotted 5.59.per share) Basic and diluted earnings per share after exceptional item in rupees (face value – ` 10/.00. this does not have any material impact on the Company’s results for the current year (b) Formation of Second Joint Venture with PPG Industries Inc. Ltd. 2012.00. Accordingly.39 9.a for the FY 2011-12 and the same is used for valuation purpose. USA: To give effect to the formation of the Second Joint Venture.15 9. net current assets aggregating to ` 55. NoTE 48: Information on related party transactions as required by Accounting Standard . 67 .21 crores.92 99.. 2012.15 775. Asian PPG Industries Ltd. 2012 except for revenue of ` 40. 2011) ii. 2011 to 31st March. 2012 Government of India (GOI) bond Yield 8. (Previous year liability – ` 6.81 80.19. 2011) Asian Paints PPG Ltd. The same is subject to the approval of the the Hon’ble High Court of Judicature at Bombay and other regulatory approvals as may be required.779 2010-2011 80.5% Remaining term of maturity 12 years Expected Guaranteed interest rate 8. the Company’s financial statements for the current year do not include the results of industrial business for the period from 1st June.25% * * As against the guaranteed interest rate for the FY 2011-12. in India) will merge with Asian PPG Industries Limited (APPG) (first Joint Venture between Asian Paints and PPG).59. Powder Coatings and Protective Coatings businesses from APPG into Asian Paints PPG Limited (second Joint Venture Company between Asian Paints and PPG.18 on Related Party Disclosures for the year ended 31st March. Ltd.32 crores of inventory sold to APCL as part of the net current assets of ` 55.000 equity shares of ` 10 each aggregating ` 50 crores in APCL and the balance was received in cash. a) Joint Venture: (In which the Company has 50% equity interest) i. (3) Long term employee benefits: The liability towards compensated absences (annual leave and sick leave) for the year ended 31st March.92 958.19.779 NoTE 47: (a) Note on AP Coatings Limited (APCL) APCL was incorporated on 30th November. The “Appointed Date” to give effect to the above has been fixed as 1st April.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements Assumptions used in determining the present value obligation of the interest rate guarantee under the Projected Unit Credit Method (PUCM): Particulars 31st March.81 775. (Incorporated in August. 2011.

00% 100.00% 99. Singapore in October.00% % of Holding as on 31st March.I.10% Country of Incorporation Nepal Mauritius India India India India % of Holding as on 31st March.00% 98.Notes to Financial Statements b) Subsidiaries: Direct Subsidiaries : Name of the Company Asian Paints (Nepal) Private Limited Asian Paints (International) Limited Asian Paints Industrial Coatings Limited Multifacet Infrastructure (India) Limited Maxbhumi Developers Limited AP Coatings Limited Indirect Subsidiaries : i) Subsidiaries of the wholly owned subsidiary.00% 100.00% Taubmans Paints (Fiji) Limited Taubmans Paints (Fiji) Limited has ceased trading and has transferred its assets.00% 60.00% 100.00% 100.00% 100.00% 100. 100.K. Singapore % of Holding as on 31st March.00% 100.E. 2012 100.00% 100. 2011 Nirvana Investments Limited 68 . a subsidiary of Asian Paints (South Pacific) Limited.00% 100. 2012 51.00% 75.00% 50. Isle of Man. Limited Enterprise Paints Limited Universal Paints Limited Lewis Berger (Overseas Holdings) Limited iv) Berger Contractor (Singapore) Pte. 2010.K.00% 100. U.15% 100. 2012 53.00% 100.10% % of Holding as on 31st March. Limited* v) Subsidiary of Enterprise Paints Limited Isle of Man.00% 100.00% Name of the Company Berger Paints Singapore Pte Limited Berger Building Services (Singapore) Pte. On 22nd November. ii) Subsidiary of Asian Paints (South Pacific) Limited: Fiji Islands 100.00% 100.00% 75.00% 100. the accounts have been submitted to the Registrar of Companies for striking off the name from the list of companies. Asian Paints (International) Limited acquired 80% stake in Samoa Paints Limited from Taubmans Paints (Fiji) Limited. Mauritius Country of Incorporation Fiji Islands Kingdom of Tonga Solomon Islands Republic of Vanuatu Sri Lanka Bangladesh Sultanate of Oman Egypt Samoa Singapore % of Holding as on 31st March.00% 100.00% 100.00% % of Holding as on 31st March.78% 49.00% 60. U.00% 100.86% 89. 2011 100.18% 89. Asian Paints (International) Limited.00% 100. U. Samoa Paints Limited ** Berger International Limited * Indicates increase in stake during the year ** Samoa Paints Limited was earlier an indirect subsidiary of Asian Paints (International) Limited.K. Country of Incorporation Singapore Singapore Isle of Man.00% 80.00% 100. liabilities and business to shareholder Asian Paints (South Pacific) Limited.00% 50. 2011 51. U.00% 60.00% 100.) Limited Asian Paints (Vanuatu) Limited Asian Paints (Lanka) Limited * Asian Paints (Bangladesh) Limited Asian Paints (Middle East) LLC SCIB Chemicals S.00% 100.K.00% Name of the Company Asian Paints (South Pacific) Limited * Asian Paints (Tonga) Limited Asian Paints (S. 2011 51.A. iii) Subsidiaries of Berger International Limited.00% Subsidiary of Berger Building Services (Singapore) Pte Ltd.00% 60.30% 100. * Struck off from the list of Companies by Registrar of Companies.78% 49.00% 80.

Jigish Choksi Mr. Managing Director & CEO (w. Sadavani Investments and Trading Co. Ltd. Ltd. Nehal Trading and Investments Pvt. Murahar Investments and Trading Co. Suryakant Paint Accessories Pvt. Dani Finlease Ltd. Pvt.f. Ltd. Rupen Investment and Industries Pvt.00% 51. 69 . Ricinash Oil Mills Ltd. Ltd.00% 70. Ashwin Dani Mr. Ltd. Ltd. Ltd. Manish Choksi. Vijal Holding & Trading Co.00% Jamaica Trinidad Barbados 51. ELF Trading and Chemicals Mfg. Suprasad Investments & Trading Co. Pragati Chemicals Ltd. Mr. Clear Mipak Packaging Solutions Ltd. S. Murty as Managing Director & CEO came to an end on 31st March. Jalaj Trading and Investments Co. S.00% 100. Kalica Paper Industries Pvt. Ltd. Pvt. a relative of Company’s Non-Executive Vice Chairman is also Executive Chairman of Berger International Limited and Director on some of the subsidiary companies. Ltd. Dakshina Properties Pvt. Hiren Holdings Pvt. Ltd. Ltd. Centaurus Trading and Investments Pvt. Ltd. Ltd. Sapan Investments Pvt. Jalaj Dani * Mr. Amar Vakil Mrs. Ltd.L. P. Ina Dani Non-Executive Chairman Non-Executive Vice Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Relatives of promoters. Dani Research Foundation Pvt. Ltd. Ltd. d) Promoters and their relatives having control: Directors: Mr. Ltd. Ltd. Express Transport Pvt. Ltd. a relative of Company’s Non-Executive Director is also on the board of a subsidiary company and a joint venture.00% 100. Gujarat Organics Ltd.E. Elcid Investments Ltd. ISIS Holding & Trading Co Pvt. S. Ltd. B. who are under the employment of the Company: Mr. 1st April. Satyadharma Investments & Trading Co. Manish Choksi ** Mr. Ltd. Ltd. Rangudyan Insurance Broking Services Ltd. Ltd. Ltd. Jaldhar Investments and Trading Co Pvt. 2012.00% 70. Abhay Vakil Mr. Vikatmev Containers Ltd. Hitech Plast Ltd.A. Castle Investment and Industries Pvt. 2012) Bahrain 100. Ltd. 2012. 100. Ultramarine & Pigments Ltd. Asteroids Trading and Investments Pvt. Resins and Plastics Ltd. Mr. Pvt. M. Doli Trading and Investments Pvt. Suptaswar Investments and Trading Co. Ltd. Ltd. Murty * Mr. Lambodar Investments & Trading Co Ltd Lyon Investment and Industries Pvt. Pvt. M. K.L. Express Engineering and Construction Pvt. Anand * Designation Managing Director & CEO (upto 31st March. Managing Director & CEO of the Company with effect from 1st April. Jalaj Dani.00% * The contractual terms of agreement for appointment of Mr. Varun Vakil * ** e) Mr. Coatings Specialities (India) Ltd.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements vi) Subsidiary of Nirvana Investments Ltd.00% Berger Paints Emirates Limited vii) Subsidiaries of Lewis Berger (Overseas Holdings) Ltd. Ltd. Express Restaurant Pvt. Unnati Trading and Investments Pvt. Tru Trading and Investments Pvt. K.e. 2012) Additional Director. Berger Paints Jamaica Limited Berger Paints Trinidad Limited Berger Paints Barbados Limited viii) Subsidiary of Universal Paints Limited Berger Paints Bahrain W. Ashwin Choksi Mr. P. Pvt. B. Ltd. Ltd. AR Intertect Design Pvt. c) Key Managerial personnel: Name of the Director Mr. Mahendra Choksi Mr. Ltd. U. Ltd Navbharat Packaging Industries Ltd. Himanshu Holdings Pvt.C. Omega Properties Pvt.00% 100. Ltd.00% 100. Anand has been appointed as the Additional Director. Companies controlled by Directors/Relatives of Directors : Haish Holding & Trading Co Pvt. Pvt. Ltd. Geetanjali Trading and Investments Pvt. Sudhanva Investments and Trading Co.

49 Sitting Fees Received (from subsidiaries for nominee directors) 0.61 2. 1956.68 Reimbursement of Expenses received 2. Remuneration paid to relatives of promoters who are under the employment of the Company pursuant to the necessary approvals from the shareholders and the Central Government. 2012.22 0.83 0.00 Contributions during the year 26.65. under Section 314 of the Companies Act.80 Equity contribution 0.94 2.13 1.48 Processing of goods (Income) 12.16 6.88 0. as the same was converted to Letter of Comfort/ Support during the year (Previous year ` 130.98 1.02 Sale of Trade Receivables 52.09 33.Notes to Financial Statements (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 entities over which there is a significant control: Asian Paints Charitable Trust.51 Royalty Received 2.29 Retiral benefits 0.00 1.00 0.13 .30 0.29 15.50 Loan given 0.14 2.04 Outstanding as at 31st March Loans Amount receivables Amount payable 14.22 Commission to Non-executive Directors 0.95 1.88 Other services .23 18.20 13.06 Reimbursement of Expenses – paid 0.60 14.54 Donation .50 35.51 181.12 0.00 0.02 Purchase of goods 0. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation. 2012: Particulars Joint Venture Subsidiaries Key Management Personnel(1) Promoters and their relatives having control(1) Companies Controlled by Directors/ Relatives Employee benefit plans where control exists (` in Crores) Others 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 Sale of goods and other miscellaneous items 17.33 Processing of goods (Expense) 0.44(2) 3. 2.42 - 8.01 0.42 0.40 1.1.52 Remuneration 4.receipts 2. Corporate Guarantee issued by the Company on behalf of its subsidiaries is NIL as at 31st March.09 0.09 Sale of Trade Payables 41.59 3.63 33.39 4.60 crores).20 23.93 14.14 12.93 0.05 0.43 0.03 Dividend received 16.28 96.08 Bad Debts written off .0.08 72. (h) Details of related party transactions during the year ended 31st March.93 4.01 213.47 10.03 9.85 1.10 1. Key management personnel and relatives of promoters who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits recognised as per AS 15 (Revised) Employee Benefits in the financial statements.21 14.73 3. the same is not included above.67 12. 70 .47 2.01 6.88 13.88 0.06 1.83 Sitting Fees Paid to Non-executive Directors 0.03 0.51 Other recoveries 10.50 0.19 Repayment of loan given Sale of assets 0.67 0.11 2.

44 8.50 52.67 79.59 10.22 1..91 38.15 159. The Company has also issued a letter to the Board of a subsidiary informing its commitment to continue extending letters of comfort for banking facilities as included in the above for a period upto 15th May.44 1.33 1.Asian Paints Limited Annual Report 2011-2012 Notes to Financial Statements The Company has issued letters of comfort/support to banks on behalf of some of its subsidiaries from time to time and the financial support/comfort based on such letters is limited to ` 207.62 1.69 13.28 5.08 10.25 28.49 14.10 26.11 crores as on 31st March.80 0.73 1.35 119.16 176.24 14.18 2.20 33.53 3.32 7.87 182.51 22.94 2.17 21.14 12. 2011).93 9.63 0.14 6.45 22.00 215.14 1.20 12.03 14.06 32.60 1.03 12.64 1. Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with related parties during the year: (` in Crores) Sale of goods Asian PPG Industries Limited AP Coatings Limited Asian Paints (Nepal) Private Limited Asian Paints (Lanka) Limited Others Purchase of Goods Hitech Plast Limited Others Royalty Received SCIB Chemicals S. 2013.44 39.Received AP Coatings Limited Others Reimbursement of Expenses . 2012 (` 63.74 13.44 10.84 24.16 15.02 41.28 2.54 33.44 8.41 12.33 41.79 4.10 3.09 3.70 crores as on 31st March.81 38.97 4.63 - 71 . Egypt Berger International Limited Asian Paints (Middle East) LLC Asian PPG Industries Limited AP Coatings Limited Others Contributions during the year Asian Paints Office Provident Fund Asian Paints Factory Employees’ Provident Fund Asian Paints Management Cadres’ Superannuation Scheme Asian Paints (India) Limited Employees’ Gratuity Fund Processing of Goods (Income) Asian PPG Industries Limited AP Coatings Limited other Recoveries Asian PPG Industries Limited AP Coatings Limited Others Reimbursement of Expenses .54 0.02 52.A.E.50 2010-11 12.25 4.23 3.53 0.Paid AP Coatings Limited Others Sale of Trade Payables AP Coatings Limited Sale of Trade Receivables AP Coatings Limited 2011-12 17.61 10.

50 257.42 32.23 1.143. 2011.25 3.95 7.79 118.90 36.01 1.422.649.27 647.63 (114. 32815 For and on behalf of the Board Ashwin Choksi Chairman K.67 (347.64 1.08 98.99 94.79 90.964.408.96 * Others include Company’s business units manufacturing Phthalic Anhydride and Pentaerythritol.26 99.06 39.12 1.24 1.21 84.396.02 29.811.15 2.716.144.43 2.45 0. S.336. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.48 17.44 2. 103750 Mumbai 8th May.48 3.86 23.384.980.12 595.79 0.25 597.72 86.855.23 93.092.12 1.886.48 457.10 138.39 4.58 4.06 28.71 (30.57 1.26 41.26 57.163.84 7.69 81.492. B.06 6.879. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee Jayesh Merchant Chief Financial Officer & Company Secretary 72 .45 18.49 0.37 32.132.800.75 104.82) 2.26 1.16 138.87 1.46 0. This adoption does not impact recognition and measurement principles followed for preparation of financial statements as at 31st March.92 6.02 1. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.18) 775.25 (15.256.07 18.01 615.49 6.293.179.67 73.92) 1.41 191.90 95.35) 5.36 26.39 3.96 3.79 1.08 110.04 1.07 0.67 (71.98 2. NoTE 50: The previous year’s figures have been re-grouped / re-classified to conform to this year’s classification which is as per Revised Schedule VI.844.53 2.47 6.83 3.90 1.846.42) 1.45 8.Notes to Financial Statements NoTE 49: Segment information for the year ended 31st March.54) 958.03 1.38 1. Signatures to Notes to Financial Statements As per our report of even date For Shah & Co.722.75 80. 2012 Paints REVENUE Net sales External sales (Net) Inter – Segment sales Other Income Total Revenue Result Segment result Unallocated expenses Operating Profit Finance Costs Interest income Dividends Exchange difference Profit/(Loss) on sale of long term investments Profit/(Loss) on sale of short term investments Profit on sale of assets Miscellaneous income Sundry balance written back Exceptional items Tax expenses Net Profit before prior period items oThER INFoRMATIoN Segment assets Unallocated assets Total Assets Segment liabilities Unallocated liabilities Total Liabilities Capital expenditure Unallocated capital expenditure Total Depreciation/Impairment Unallocated Depreciation/Impairment Total 2011-2012 Others* Total Paints 2010-2011 Others* (` In Crores) Total 7.284.475.02 110.55 1.11 (404.

CONSOLIDATED FINANCIAL STATEMENTS .

876.0 413.7 0.0 95.502.778.41 : 1 *#21.5 1.7 102.7 5.6 989.42 : 1 *18.8 11.0 2.5 6.8 718.74 (` in Crores except per share data and ratios) 2010-2011@ 8.2) (6.5 437.3 736.6 53.9 681.6 64.0 45.9 57.7 28.9 1.3 14.577.5 17.0 3.0 422.6 57.9 43.1 750.2 174.8 0.7 0.2 61.1 26.8 24.1 21.8 61.3 15.1 42.9 2.9 2009-2010^ 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2.3 24.4 212.9 2.9 1.2 493.425.1 23.6 92.2 41.9 550.2 11.1 39.3 308.1 15.3 21.4 294.8) 237.3 81.5 95.3 40.7 281.1 139.1 508.6 27.6 29.259.9 95.346.2 18.1 229.4 323.4 46.3 239.1 15. Figures are regrouped as per Revised Schedule VI to the Companies Act.4 26.259.9 196.9 13.9 718.9 228.695.8 7.610.5 31.32 : 1 *#15.4 11.8 0.3 56.3 169.9 10.2 1.370. EPS is calculated after adjusting for bonus issue and the reduction of capital on account of merger of Pentasia Investments Limited On increased Capital.0 9.3 58.9 618.2 192.5 125.9 516.4 1.7 52.9 39.1 1.7 95.5 2.5 56.0 0.4 1.6 397.0 101.4 430.0 0.1 1.8 (7.2 233.1 178.4 83.4 16.8 95.9 1.9 28.4 1.1 15.5 59.5 24.9 2.021.199.3 1.5 20.9 164.722.8) 103.6 518.7 0.1 1.5 95.367.5 85.0 6.8) 226.1 7.9 38.3 35.1 60.9 5.2 113.5 64. This period includes 15 months (1 st January.9 350.2 674.6 28.217.8 245.2 61. Includes investments in Liquid Mutual Funds which is part of cash and cash equivalents.4 1.255. 1956.28 : 1 *42.12 : 1 103.9 11.26 : 1 *41.8 409.5 39.632.0 28.3 835.0 54.7 74.3 474.170.2 30.1 275.9 4.259.9 18.9 631. 2010) of Overseas Subsidiaries.4 0.4 293.0 121.5 26.9 (7. 2009 to 31st March.6 24.730.7 15.0 (7.280.792.1 638.6 1.2 35.3 18.670.4 59.7 2011-2012@ 10.1 13.4 3.0 616.680.1 78.2 18.2 (1.2 30.0 11.1 937.5 11.1 1.6 31.572.0 2.4 46.8 11.9 59.11 : 1 87.0 922.6 74.9 4.3 0.3 624.7 276.4 1.1 1.257.316.3 1.463.314.0 2.9 26.3 437.777.2 3.6 56.2 691.3 34.7 13.075.6 18.9 3.1 227.8 306.6 4.6) 343.8 11.1 95.1 **55.8) (7.1 261.7) 287.4 : 1 *22.9 471.9 886.1 0.8 5.3 95.5 Ten Year Review (Consolidated) RESULTS FOR THE FINANCIAL YEAR Revenue Account Gross Revenue Net Revenue from Operations Growth Rates (%) Materials Cost % to Net Revenue Overheads % to Net Revenue Operating Profit (EBITDA) Finance Costs Depreciation Profit Before Tax and Exceptional items % to Net Revenue Growth Rates (%) Exceptional items Profit Before Tax and after Exceptional items % to Net Revenue Profit After Tax (after Minority interest) Return on average capital employed (ROCE) (%) Return on average net worth (RONW) (%) Capital Account Share Capital Reserves and Surplus Deferred Tax Liability (Net) Borrowings Fixed Assets Investments $ Debt-Equity Ratio Per Share Data Earnings Per Share (EPS) (`) Book Value (`) * # ** ^ @ $ EPS calculated on Net Profit after exceptional items.6 11.9 433.6 2.229.6 2.042. .2 62.4 74.510.13 : 1 *87.1 1.8 341.6 367.2 53.7 54.3 95.1 67.7 16.6 22.0 60.2 24.616.1 11.091.0 3.39 : 1 *29.1 286.1 0.7 144.7 25.0 113.107.7 1.7 58.4 1.3 451.6 905.2 56.1 1.7 16.758.474.4 36.951.246.396.1 1.3 14.919.1 40.1 59.652.2 58.0 10.3 843.454.2 (1.0 27.454.2 7.1 988.407.2) 45.573.614.0 20.7 11.9 838.2 (3.

We report that the consolidated financial statements have been prepared by the Company in accordance with the requirements of Accounting Standard (AS 21) on Consolidated Financial Statements and (AS 27) on financial reporting of interests in Joint Ventures prescribed by the Companies (Accounting Standards) Rules. An audit also includes assessing the accounting principles used and significant estimates made by management. An audit includes examining on a test basis. Multifacet Infrastructure (India) Limited. These financial statements are the responsibility of the Company’s management. is based solely on reports of the other auditors. and (iii) in the case of the Consolidated Cash Flow Statement. Asian Paints Industrial Coatings Limited. have been audited by one of the joint auditors.: 116231W Natrajh Ramakrishna Partner Membership No. of the consolidated cash flows of the Asian Paints group for the year ended on that date. in accordance with and identified financial reporting framework and are free of material misstatements. and also the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the year ended (refer Note 27 of Notes to Consolidated Financial Statements) on that date annexed thereto. evidence supporting the amounts and disclosures in the financial statements. Our responsibility is to express an opinion on these financial statements based on our audit. in so far as it relates to the amounts included in respect of the subsidiaries/joint ventures. on individual audited financial statements of the Company and its aforesaid subsidiaries and joint ventures. AP Coatings Limited and Maxbhumi Developers Limited for the year ended 31st March 2012. of the consolidated profit for the Asian Paints group for the year ended on that date. Asian Paints PPG Limited for the period from 5th August 2011 to 31st March 2012.. we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) in the case of Consolidated Balance Sheet. On the basis of the information and explanations given to us and on the consideration of the separate audit report/ report of other auditors as explained above. in the case of Consolidated Statement of Profit and Loss. in all material respects. The financial statements of the subsidiaries. Shah & Co. We believe that our audit provides a reasonable basis for our opinion.: 32815 75 . of the consolidated state of affairs of the Asian Paints group as at 31st March 2012. B S R & Associates.: 109430W Ashish Shah Partner Membership No.: 103750 Mumbai 8th May 2012 For B S R & Associates Chartered Accountants Firm Registration No. We have not audited the financial statements of subsidiaries/joint ventures mentioned in Annexure to this report whose total assets and total revenues are mentioned in the Annexure to this report. Chartered Accountants Firm Registration No. have been audited by one of the joint auditors. For Shah & Co. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared.Asian Paints Limited Annual Report 2011-2012 Auditors’ Report to the Board of Directors of Asian Paints Limited We have audited the attached Consolidated Balance Sheet of Asian Paints Limited and its subsidiaries/joint ventures (collectively referred to as Asian Paints Group) as at 31st March 2012. Chartered Accountants. and our opinion. 2006. as well as evaluating the overall financial statement presentation. These financial statements have been audited by other auditors whose reports have been furnished to us for the purpose of consolidation. We conducted our audit in accordance with generally accepted auditing standards in India. Chartered Accountants and financial statements of the Joint Venture.

36 5.R Upadhya & Co.06 5.78 12. Apr 11 .13 Mar 12 Direct 53.@ @ Struck off from the list of companies by Registrar of Companies.Mar 12 iii) Subsidiary of Berger Building Services (Singapore) Pte. Apr 11 .00 440.Mar 12 Apr 11 . Shah & Co.22 45.Mar 12 Apr 11 .08 237.Mar 12 Apr 11 .Mar 12 Apr 11 . Rhodes Rahman Rahman Huq BDO JAWAB HABIB Deloitte.18 # 48. Saleh.36 4.74 -# 71. liabilities and business to shareholder Asian Paints (South Pacific) Limited.12 4. Apr 11 .Mar 12 Apr 11 .05 152. Singapore: Accounting period Berger Paints Singapore Pte Ltd. but it still continues to remain a separate legal entity pending legal formalities.Mar 12 Apr 11 . Barsoum and Abdel-Aziz Deloitte & Touche LLP Lesa ma Penn # Represents figures of Asian Paints (International) Limited (Standalone).A.63 111.11 328.Mar 12 Apr 11 .Mar 12 Direct Direct Direct Direct Indirect Indirect Indirect Indirect Indirect Indirect Indirect Indirect Indirect Indirect 0.64 T. Ltd. * Incorporated on 30th November 2010.Mar 12 Apr 11 .Annexure to the Auditors’ Report .Mar 12 Apr 11 .Mar 12 The Company has ceased trading and has transferred its assets. Berger International Limited. Ltd.E.13 222. Berger Building Services (Singapore) Pte.Mar 12 Apr 11 .Mar 12 Apr 11 .31st March 2012 (Referred to in our report of even date) The following subsidiaries have been considered for the consolidation of Asian Paints Limited: (` in Crores) Name of the Company Asian Paints (Nepal) Pvt.37 14.15 202.08 43.68 Shah & Co.) Limited Asian Paints (Vanuatu) Limited Asian Paints (Lanka) Limited** Asian Paints (Bangladesh) Limited Asian Paints (Middle East) LLC SCIB Chemicals S.Mar 12 Apr 11 . Singapore in October.04 141.Mar 12 Apr 11 .33 4. 2011 Apr 11 .40 3.Mar 12 76 . Ltd.I. i) Subsidiary of Asian Paints (South Pacific) Limited: Taubmans Paints (Fiji) Limited*** *** ii) Apr 11 .Mar 12 Apr 11 . Shah & Co.: Berger Contractor (Singapore) Pte.Mar 12 Apr 11 .Mar 12 Direct 44.Mar 12 Apr 11 .51 40.28 45. Enterprise Paints Limited Universal Paints Limited Lewis Berger (Overseas Holdings) Ltd. Limited Asian Paints Industrial Coatings Limited Multifacet Infrastructure (India) Limited AP Coatings Limited* Maxbhumi Developers Limited Asian Paints (International) Limited: Consolidated comprising of:Asian Paints (South Pacific) Limited** Asian Paints (Tonga) Limited Asian Paints (S. Subsidiaries of Berger International Limited.02 61.12 7.Mar 12 Apr 11 .53 70. ** Indicates increase in stake during the year.36 94. Deloitte & Touche ERNST & YOUNG ERNST & YOUNG ERNST & YOUNG ERNST & YOUNG KPMG Ford.75 Shah & Co. Singapore Samoa Paints Limited Accounting Subsidiary Total Total Name of the Auditor Period Assets Revenues 15 Mar 11 .

Mar 12 Apr 11 . Berger Paints Trinidad Ltd.. Joint Venture: Asian PPG Industries Limited.L. Apr 11 . (incorporated on 5th August 2011) a second joint venture between the parent company and PPG Industries Securities Inc.Asian Paints Limited Annual Report 2011-2012 iv) Subsidiary of Enterprise Paints Limited: Nirvana Investments Ltd. a joint venture between the parent company and PPG Industries Securities Inc. Berger Paints Barbados Ltd.A.90 Name of the Auditor Apr 11 . The accounts of the said company are incorporated with that of the Joint Venture for the purpose of consolidation. and in PPG Asian Paints Lanka Private Limited (incorporated in April 2011).March 12 Asian Paints PPG Ltd. U..: Berger Paints Emirates Ltd.A...S.: 32815 77 .Mar 12 Apr 11 .: 116231W Natrajh Ramakrishna Partner Membership No.: Berger Paints Jamaica Ltd. April 11 .11 Proportionate share of Total Revenues 348.Mar 12 vi) Subsidiaries of Lewis Berger (Overseas Holdings) Ltd.71 0. Ltd.Mar 12 v) Subsidiary of Nirvana Investments Ltd. Asian Paints PPG Ltd. Apr 11 .Mar 12 Asian PPG Industries Ltd. 5 Aug 11.31 Mar 12 Subsidiary of Joint Venture: Deloitte Haskins & Sells B S R & Associates Asian PPG Industries Ltd. For Shah & Co.L. Chartered Accountants Firm Registration No.S. has a 100% stake in Faaber Paints Pvt. Apr 11 .: 103750 Mumbai 8th May 2012 For B S R & Associates Chartered Accountants Firm Registration No.Mar 12 vii) Subsidiary of Universal Paints Limited: Berger Paints Bahrain W.: 109430W Ashish Shah Partner Membership No. wherein the parent company has 50% equity participation: (` in Crores) Name of the Company Accounting Period Joint Venture Direct Direct Proportionate share of Total Assets 239. wherein the parent company has 50% equity participation. U.

12 366.44 531.58 11 A 11 B 1. 2012 Notes EQUITY AND LIABILITIES ShAREhoLDERS’ FUNDS Share Capital Reserves and Surplus Minority Interest NoN-CURRENT LIABILITIES Long Term Borrowings Deferred Tax Liability (Net) Other Long Term Liabilities Long Term Provisions CURRENT LIABILITIES Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions Total ASSETS NoN-CURRENT ASSETS Fixed Assets Tangible Assets Intangible Assets Capital work-in-progress Goodwill on consolidation Non-current Investments Long Term Loans and Advances Other Non-Current Assets CURRENT ASSETS Current Investments Inventories Trade Receivables Cash and Bank Balances Short Term Loans and Advances Other Current Assets Total Significant Accounting Policies Notes are an integral part of the financial statements.35 240.85 92.74 76.42 109.47 78.087.2011 2 3 95.896.51 1. B.86 43.14 366.61 171.66 4. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.47 89.598.08 1.89 781.21 1.88 290.187.31 186.03.19 62.14 1.82 22.52 69.23 106.71 285.10 85.249. As per our report of even date For Shah & Co.00 37.03.89 58.067.05 617.18 84. S.559.091.233.87 5.21 23.60 4.896. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee Jayesh Merchant Chief Financial Officer & Company Secretary 78 .83 13.21 95. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.316. 103750 Mumbai 8th May.652.610.18 12.59 232.58 2.92 2.32 1.43 573.50 280.20 2.22 3.83 827.69 55.296.28 21.00 1.25 624.50 136.02 1.52 5.770.2012 (` in Crores) As at 31.92 2. 32815 Ashwin Choksi Chairman 12 13 14 15 16 17 18 13 19 4 5 6 7 8 9 10 7 As at 31.10 626.748.11 41.46 104.72 327.55 2.98 25.610.876.305.Consolidated Balance Sheet as at 31st March.86 3.58 1 For and on behalf of the Board K.080.50 2.

632.58 31.97 1.465.77 (151. DEPRECIATION AND AMoRTISATIoN (EBITDA) Depreciation and Amortisation Expense Finance Costs PROFIT BEFORE TAX Less: Tax Expenses Current Tax Deferred Tax (Excess) tax provision for earlier years Total Tax Expenses PROFIT AFTER TAX Minority Interest Net Profit Attributable to shareholders Earnings per share (`) Basic and diluted (Face value of ` 10 each) Significant Accounting Policies Notes are an integral part of the financial statements.425.259.99 1. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee 1 31 5 429.24 87. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.Asian Paints Limited Annual Report 2011-2012 Consolidated Statement of Profit and Loss for the year ended 31st March.41 9. TAX.720.739. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.18 121. 2012 (` in Crores) Notes INCoME Revenue from Operations (Net of discounts) Less: Excise duty Revenue from Operations (Net of discounts and excise duty) Other Income ToTAL REVENUE EXPENSES Cost of Materials Consumed Purchases of Stock-in-trade Changes in inventories of finished goods. work-in-progress and stock-in-trade Employee Benefits Expense Other Expenses TOTAL EXPENSES EARNINGS BEFORE INTEREST.08 355.95) 525.47 1.76) 378.98 7.123.53 655.65 6.73 103.790.11 843. S. 103750 Mumbai 8th May.21 1.394.616.43) 453. B.454.91 11 25 22A 22B 22C 23 24 5.28 Year 2011-12 Year 2010-11 Jayesh Merchant Chief Financial Officer & Company Secretary 79 .22 200.96) 433.20 1.08 113.77 9.08 4.34 6.020.50 8.23 7.722.35 38. As per our report of even date For Shah & Co.15 (4.13 23. 32815 For and on behalf of the Board Ashwin Choksi Chairman K.01 839.820.53 229.42 (172.396.85 988.377.65 8.13 40.97 1.12 (1.00 28.24 107.74 21 20 10.30 67.472.39 881.50 1.

88 (349.55) (81.23 10.47 (440.95 1.49) (35.86 (40. 32815 For and on behalf of the Board Ashwin Choksi Chairman K.25 41.16) 6.43) 637.10) 5. 103750 Mumbai 8th May.13) (11.08 121. Net Increase in Cash and Cash equivalents Cash and Cash equivalents as at 31st March.93 (23.13 (0.259. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee A 1.51) (12.47 1.94) 254. 2011* Net effect of changes in exchange rate on cash and cash equivalents Cash and Cash equivalents as at 31st March.47) (16.88) 108.79 (336.31 2010-11 1.95 (429. B.21) (316.10) 1.83) (334.40) (6.45 10.13 (32.46) (300.07) (326.98) 314.74 113.84 6.23) 40.44 (293.27) 626.50) 0.39) 397.330.84) (0.42) (383.97 (6.38 (391.38) 11.49) (12. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.99 1.58 (0. Cash Flows from Investing Activities: Purchase of fixed assets Sale of fixed assets Purchase of investment Sale of long term investment Profit on sale of short term investment Interest received Dividend received Cash paid for increase in the stake in subsidiary Net cash used in Investing Activities C.35 624.535.58) 826.23 Jayesh Merchant Chief Financial Officer & Company Secretary 80 . Cash Flows from Financing Activities Repayment of long term loans Short term loans taken Finance costs paid Dividend paid (including dividend paid to Minority) Net cash used in Financing Activities D.29 (290.Consolidated Cash Flow Statement for the year ended 31st March.46 (156.63) (512.45) (41.69) 23.83 1.48) (0. 2012* * Cash and Cash equivalents are cash and bank balances as mentioned in Note 18 As per our report of even date For Shah & Co.454. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.45) (2.21 (10.19 626.49 35.154.09 0.92) 762.37 (673. 2012 (` in Crores) 2011-12 Cash Flow from operating activities: Profit Before Tax: Adjustment for: Depreciation / Impairment Profit on sale of long term investments Profit on sale of short term investments Profit on Sale of fixed assets Finance costs Interest Income Dividend Income Effect of exchange rates on translation of operating cashflows Operating Profit before Working Capital changes Adjustment for: Inventories Trade and Other Receivables Trade and Other Payables Cash generated from operations Income tax paid (net of refund) Net Cash generated from operating Activities B. S.255.57) 0.

duties. 2006 and with the relevant provisions of the Companies Act. the term of the relevant lease. Tangible and Intangible Assets (a) Tangible Fixed Assets Tangible fixed assets are carried at the cost of acquisition or construction. (c) Presentation and disclosures in financial statements For the year ended 31st March. (c) Depreciation and Amortisation: Depreciation on fixed assets is provided under Written Down Value/Straight Line Method as the case may be or at such rates so as to write off the value of assets over their useful life. 1. freight and other directly attributable costs related to the acquisition or construction of the respective assets. Expenses directly attributable to new manufacturing facility during its construction period are capitalized. The cost of fixed assets includes taxes (other than those subsequently recoverable from tax authorities).2. an assessment is done to determine whether there is any indication of impairment of the carrying amount of the Group’s fixed assets. 81 . The carrying amount of the fixed asset is increased to the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. If any such indication exists. (b) Use of estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period. If any such indication exists the asset’s recoverable amount is estimated. designs and drawings of buildings or plant and equipment is capitalised under relevant asset heads. An impairment loss is recognised whenever the carrying amount of asset exceeds its recoverable amount. A reversal of impairment loss is recognised in the Statement of Profit and Loss. less accumulated depreciation and accumulated impairment. Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or. An assessment is also done at each balance sheet date whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements NoTE 1: Significant Accounting Policies and Notes to Consolidated Financial Statements 1. presentation and disclosures in financial statements as per the requirement under Revised Schedule VI to the extent possible. the Group has reclassified the previous year’s figures. (d) Impairment: At balance sheet date. Leasehold improvements are amortised over the primary period of lease. intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss. (b) Intangible Assets Intangible assets acquired separately are measured on initial recognition at cost. 1956. Profit or loss on disposal of tangible assets is recognised in the statement of profit and loss. Intangible assets are capitalised and amortised over their estimated useful life. Profit or loss on disposal of intangible assets is recognised in the statement of profit and loss. if any. an asset’s recoverable amount is estimated.1 Basis for preparation of consolidated financial statements (a) Basis of Preparation: The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules. where shorter. 2012. Following initial recognition. Know-how related to plans.

goodwill is allocated to each of the Group’s cash-generating units that are expected to benefit from the synergies of the business combination.4 Revenue Recognition Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. Dividend income is recognised when the right to receive payment is established. packing materials. less its residual value (if any). the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit. In determining cost of raw materials. An impairment loss recognised in goodwill is not reversed in a subsequent period. or more frequently when there is an indication that the unit may be impaired. 1. stock-in-trade. lease rentals are recognised as an expense in the Statement of Profit and Loss on an accrual basis over the lease term.3 Goodwill Goodwill arising on the acquisition of a subsidiary represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets and liabilities of the subsidiary recognised at the date of acquisition. consumables and stock-in-trade are carried at the lower of cost and net realisable value. work-in-progress. finished goods. unserviceable and inert stocks are suitably written down /provided for. at the present value of the minimum lease payments. Sales are stated gross of excise duty as well as net of excise duty. 1. components and consumables. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Processing income is recognised on accrual basis as per contractual arrangements. In respect of assets given on operating lease. Interest income is recognised on the time proportion basis. The excess of lease payments over the recorded lease obligations are treated as finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. spares. stores. Assets given on lease: In respect of assets provided on finance leases. Revenue from rendering of services is recognised by reference to the stage of completion of the transaction at the Balance Sheet date determined by services performed to date as a percentage of total services. duties. stores. over its remaining useful life. packing materials. The assets are depreciated as owned depreciable assets. lease rentals are accounted on accrual basis in accordance with the respective lease agreements. weighted average cost method is used. The excise duty related to the difference between the closing stock and opening stock is recognised separately as part of ‘changes in inventories of finished goods. components. the depreciation charge for the asset is adjusted in future periods to allocate the asset’s revised carrying amount.6 Inventory a) Raw materials. excise duty being the amount included in the amount of gross turnover.5 Lease Accounting Assets taken on lease: In respect of operating leases. Revenue from services is recognised on rendering of services. spares. The amount recognised as sale is exclusive of sales tax/VAT and net of returns. 1. For the purpose of impairment testing. The comparison of cost and net realisable value is made on an item-by-item basis. Cost of inventory comprises all costs of purchase.Notes to Consolidated Financial Statements After recognition of an impairment loss or reversal of an impairment loss as applicable. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. 1. amounts due from lessees are recorded as receivables at the amount of the Group’s net investment in the leases. Cash-generating units to which goodwill has been allocated are tested for impairment annually. b) 82 . work-in-progress and stock-in-trade’. In respect of assets obtained on finance leases. assets are recognised at their fair value at the date of acquisition or if lower. Damaged.

On disposal of an investment. The resulting exchange differences are classified as foreign currency translation reserve. yet to be quantified at the customer level are included under the head of provision for expenses in Other Current Liabilities. packing materials. Forward exchange contracts: The premium or discount arising at the inception of forward exchange contract is amortized and recognised as an expense/income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the period in which the exchange rates change. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Translation of financial statements of foreign entities: In translating the financial statements of foreign entities for incorporation in the consolidated financial statements. Short Term Employee Benefits: All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognised in the period in which the employee renders the related service. The Group recognises the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid. 1.10 Employee Benefits A. The comparison of cost and fair value is done separately in respect of each category of investments. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the Statement of Profit and loss of the year.8 Transactions and translations in foreign currency Initial recognition: Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss. an appropriate share of fixed and variable production overheads. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognised as income or expense for the period. Adequate provision is made for debts considered doubtful. the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss. B. Profit or loss on sale of investments is determined on a first-in-first-out (FIFO) basis.7 Investments Non-current investments are carried at cost. the assets and liabilities are translated at the exchange rate prevailing at the balance sheet date of respective subsidiaries. Fixed production overheads are allocated on the basis of normal capacity of production facilities. Post-employment benefits: (a) Defined contribution plans Defined contribution plans are post-employment benefit plans under which the parent and its subsidiary companies pay fixed contributions into separate entities (funds) or to financial institutions or state managed 83 . 1. Measurement of foreign currency items at the Balance Sheet date: Foreign currency monetary items of the Company are restated at the closing exchange rates. Current investments are carried at lower of cost and fair value. c) Cost of finished goods and work-in-progress includes the cost of raw materials. and the income and expense items are translated at the average rates of exchange for the year. 1. Discounts due.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their present location and condition. Provision for diminution in the value of non-current investments is made only if such a decline is other than temporary in the opinion of the management. 1.9 Trade Receivables Trade receivables are stated after writing off debts considered as bad. excise duty as applicable and other cost incurred in bringing the inventories to their present location and condition.

Indian Subsidiaries also operate Defined Contribution Plans pertaining to Provident Fund Scheme.Notes to Consolidated Financial Statements retirement benefit schemes. and as reduced by the fair value of plan assets. The parent company and its Indian subsidiaries/Joint Venture operate defined contribution plans pertaining to Employee State Insurance Scheme and Government administered Pension Fund Scheme for all employees and the parent company operates a Superannuation scheme for eligible employees. Interest shortfall. Sick leave can only be availed while annual leave can either be availed or encashed subject to a restriction on the maximum number of accumulation of leaves. (iv) Provident Fund Scheme (funded) The parent company and its joint venture operate a provident fund scheme by paying contribution into separate entities (funds). The Company presents this liability as current and non-current in the balance sheet as per actuarial valuations and certificate issued by the independent actuary. (ii) Pension and Leaving Indemnity Scheme (Unfunded) The parent company and some of its foreign subsidiaries operate a pension and leaving indemnity plan for certain specified employees and is payable upon the employee satisfying certain conditions. if applicable. Past service cost is recognised immediately to the extent that the benefits are already vested. 84 . liabilities have been provided on an estimated basis. the entire liability towards gratuity is considered as current as the company will contribute this amount to the gratuity fund within the next 12 months. The contribution is paid to a separate entity (a fund) or to a financial institution. its Indian subsidiaries/Joint Venture and some of its foreign subsidiaries operate a gratuity and pension plan for employees. (c) Other long term employee benefits Entitlements to annual leave and sick leave are recognised when they accrue to employees. (iii) Post Retirement Medical benefit plan (Unfunded) The parent company and some of its foreign subsidiaries operate a post retirement medical benefit plan for certain specified employees and is payable upon the employee satisfying certain conditions. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognised representing the unrecognised past service cost plus the present value of available refunds and reductions in future contributions to the plan. The parent company and its Indian subsidiaries and joint venture determine the liability for such accumulated leave using the Projected Accrued Benefit Method with actuarial valuations being carried out at each balance sheet date. The group’s contributions to defined contribution plans are recognised in the Statement of Profit and Loss in the financial year to which they relate. else is amortised on a straight-line basis over the average period until the amended benefits become vested. The Company presents this liability as current and non-current in the balance sheet as per actuarial valuations and certificate issued by the independent actuary. towards meeting the Gratuity and Pension obligation. (b) Defined benefit plans (i) Gratuity and Pension Scheme (Funded) The parent company. The cost of providing defined benefits is determined using the Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date. pertaining to such funds are recompensed by the Company. however. The Company presents the above liabilities as current and non-current in the balance sheet as per actuarial valuations and certificate issued by the independent actuary. if any. The defined benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service costs. In case of certain foreign subsidiaries.

Asian Paints Limited Annual Report 2011-2012

Notes to Consolidated Financial Statements
1.11 Research and Development a) b) Capital expenditure is shown separately under respective heads of fixed assets. Revenue expenses including depreciation are charged to Statement of Profit and Loss under the respective heads of expenses.

1.12 Provision for taxation Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with applicable taxation laws), and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward loss under applicable taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation. 1.13 Provisions and Contingencies The Group creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made. 1.14 Earnings Per Share The basic and diluted Earnings Per Share (“EPS”) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year. 1.15 Proposed Dividend Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting. 1.16 Borrowing Cost Borrowing cost includes Interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized, if any. All other borrowing costs are expensed in the period they occur. 1.17 Measurement of EBITDA The Company has elected to present earnings before interest (finance cost), tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The Company measures EBITDA on the basis of profit/(loss) from continuing operations.

85

Notes to Consolidated Financial Statements
(` in Crores) NOTE 2 : SHARE CAPITAL Authorised 9,95,00,000 (Previous year 9,95,00,000) Equity Shares of ` 10/- each 50,000 (Previous year 50,000) 11% Redeemable Cumulative Preference Shares of ` 100/- each As at 31.03.2012 99.50 0.50 100.00 Issued, Subscribed and Paid up capital 9,59,19,779 (Previous year 9,59,19,779) Equity Shares of ` 10/- each fully paid. a) As at 31.03.2011 99.50 0.50 100.00

95.92 95.92

95.92 95.92

Reconciliation of the number of shares outstanding at the beginning and at the end of the year of the parent company Equity Shares 31.03.2012 31.03.2011 No. of Shares ` in Crores No. of Shares ` in Crores 9,59,19,779 95.92 9,59,19,779 95.92 9,59,19,779 95.92 9,59,19,779 95.92 31.03.2012 No. of Equity Percentage Shares holding 1,54,92,868 53,13,232 16.15 5.54 31.03.2011 No. of Equity Percentage Shares holding 1,49,22,538 56,45,727 15.56 5.89

At the beginning of the year Add: Issued during the year outstanding at the end of the year b)

Details of Shareholders holding more than 5% Equity Shares in the parent company #

Name of Shareholders Equity Shares of ` 10/- each 1. Geetanjali Trading and Investment Private Limited 2. Life Insurance Corporation of India c) Terms/rights attached to Equity Shares

# As per the records of the Company, including its register of members.

The parent company has only one class of shares referred to as equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share. As per the Companies Act, 1956, in the case of parent company, the holders of equity shares of the Company 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 shareholders.

86

Asian Paints Limited Annual Report 2011-2012

Notes to Consolidated Financial Statements
(` in Crores) NOTE 3 : RESERVES AND SURPLUS (a) (b) (c) (d) Capital Reserve on consolidation Capital Reserve [` 5,000/-, (Previous year ` 5,000/-)] Capital Redemption Reserve General Reserve As per last Balance Sheet Add: Transfer from surplus in Statement of Profit and Loss Add: Adjustment on stake change in subsidiary As at 31.03.2012 3.25 * 5.37 1,507.06 442.80 (0.05) 1,949.81 (24.18) 18.33 (5.85) 600.00 988.73 1,588.73 As at 31.03.2011 3.25 * 5.37 1,020.72 486.19 0.15 1,507.06 (15.28) (8.90) (24.18) 600.00 843.24 1,443.24

(e) Foreign Currency Translation Reserve As per last Balance Sheet Add: Currency translation Gain/(Loss) During the year (f) Surplus in Statement of Profit and Loss As per last Balance Sheet Add: Net profit after tax transferred from Statement of Profit and Loss for the year Amount available for appropriation Less: Appropriations Dividend on Equity Shares: - Interim Dividend [Amount per share ` 9.50 (Previous year ` 8.50)] - Proposed Final Dividend [Amount per share ` 30.50 ( Previous year ` 23.50)] Income Tax on Dividend (includes income tax on proposed dividend) Transfer to General Reserve Closing balance

91.13 292.56 62.24 442.80 700.00 2,652.58

81.53 225.41 50.11 486.19 600.00 2,091.50 (` in Crores)

NOTE 4 : LONG TERM BORROWINGS (a) Deferred payment liabilities @ Secured Financial Institution (Sales tax deferment scheme State of Uttar Pradesh) # Finance Lease liability ## Unsecured Sales tax deferment scheme – State of Andhra Pradesh ### (b) Loan from Banks Secured Term Loan ^

Non-Current 31.03.2012 31.03.2011

Current 31.03.2012 31.03.2011

12.37 0.40

17.01 0.39

4.64 0.19

4.05 0.14

40.27

40.70

0.43

-

2.81 55.85 55.85

58.10 58.10

5.26 (5.26) -

4.19 (4.19) -

Amount included under the head “other current liabilities” (Refer Note 10)

87

01 crores is repayable in next 4 years upto May.59) (124.52 31.83) (2.65) 0. (Interest rate 4. but the same is yet to be disbursed by them.P. 2015.12) As at 31. Secured by fixed/floating charge on the inventories.NIL NoTE 5: DEFERRED TAX LIABILITY (NET) The Company has recognized deferred tax arising on account of timing differences. The accumulated sales tax deferment loan till 31st March.25%) ## ### Sales tax deferment – State of Andhra Pradesh represents interest free loan availed under the Sales tax deferment Scheme of the Government of Andhra Pradesh. 2012 is ` 40. 2012 are as follows: (` in Crores) As at 31. This interest free loan has a deferment period of 14 years and is repayables in 9 yearly installments starting from April’ 2012 as per repayment schedule.46 32.67) (1. For the period ended 31st March. is secured by a first charge on the Parent Company’s immovable properties pertaining to the paint plant at Kasna and by way of hypothecation of all movable properties at the above location.90 (85.2011 (106. This interest free loan has a deferment period of 10 years and is repayable in 9 yearly installments starting from May.49) (9. Non-current portion is repayable within 2-5 years.18) (1. Out of the total sales tax deferment loan of ` 30.62) 1. Limited (PICUP) under Sales Tax Deferment Scheme of Government of U. term deposits or fixed assets of the respective subsidiaries. the Company is in the process of making necessary application to the Haryana Government for the issue of eligibility certificate.09 (6.16. 2007 as per repayment schedule. Unremitted income Retirement Benefit Plans Expense allowed for tax purpose on payment basis (Amount paid under protest) Others Total deferred tax liabilities Deferred tax assets Provision for expense allowed for tax purpose on payment basis Provision for doubtful debts and advances Expenditure debited to Statement of Profit and Loss but allowed in Income Tax over a longer period Capital losses carried forward under Income Tax Total deferred tax assets Net deferred tax (liability) Foreign Exchange Fluctuation (Loss)/Gain Net Deferred tax liability of earlier years Net Deferred tax (expense) for the year (110.Notes to Consolidated Financial Statements # Interest free Term loan from the Pradeshiya Industrial Corporation of U.52 2.68) (2. 2012. carries fixed interest of 11%.60 crores the Company has already repaid ` 13. 2012. The parent company is also eligible to avail interest free loan in respect of 50% of VAT paid within Haryana on the sale of goods produced by Rohtak plant for a period of 7 financial years beginning from April 2010.03. @ Default in terms of repayment of principle and interest . that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS 22) – Accounting for Taxes on income. being the difference between the taxable income and accounting income.P.49) (2.77) 18. For the year ended 31st March. ^ Secured against mortgaged of property and plant.40 crores on 2nd April. 2012 and balance amount of ` 17.07% .95) (0.15) 88 .50 1.03. book debts.69 6.63 7.23 5.2012 Deferred tax liabilities Difference between Written Down Value/Capital work-in-progress of fixed assets as per the books of accounts and Income Tax. 2011 the Company has received the eligibility certificate from the Haryana Government sanctioning an interest free loan of ` 3.78) (6. The major components of deferred tax (liabilities)/assets arising on account of timing differences as at 31st March.94 (92.84 (28.40) (118.59 crores till 31st March.34) (0.46) (1.70 crores.29 3.08) 19.

08 (25.08) 7.03.14 Secured by hypothecation of inventories and trade receivables and carries interest rate @ 11.02 (11.50% to 13.66 1.2012 31.2011 NOTE 8 : SHORT TERM BORROWINGS (a) Loan repayable on demand from banks ^ Secured Banks/Financial Institutions # Cash Credit Accounts # Unsecured Overdraft .50% p.30 0.74 (` in Crores) Current 31.32 133.93 292.NIL 89 .Trade Deposits .a.57 10. Foreign currency loan carries interest @ LIBOR plus 0.50% p.34 4.73 11.03.20 (` in Crores) As at 31.60 6.21 0.74 12.28 13.50% p.80 8.45 12.80 25.86 0.41 0.47 4.41 36.02) - NOTE 7: PROVISIONS Provision for Employee Benefits (Refer Note 30) Provision for Compensated absences Provision for Gratuity and Pension (Funded) Provision for Pension.11 11.69 1.65 1.91 225.2011 3.2012 6.a.55 As at 31. repayable on their respective due dates within next 12 months.03.03.2012 31.25 9.02 8.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements NoTE 6: oThER LoNG TERM LIABILITIES Other Payables .51 280.73 1.Others Amount included under the head “Other current liabilities” (Refer Note 10) Non-Current 31.61 76.00 6.35 52. Default in terms of repayment of principle and interest .31 7.2012 31.03.75 1. Overdraft in current account carries interest rate @ 10.56 0.03.2011 53.07 3.46 9.06 3.03.60 0.95 78.70 13.Employees Payables .03. Leaving Indemnity and Medical Plan (Unfunded) Others Provision for Excise (Refer Note 33) Provision for Central Sales Tax/VAT (Refer Note 33) Provision for Warranties (Refer Note 33) Proposed Dividend Provision for Income Tax on Proposed Dividend Provision for Income Tax (Net) Long term 31.2011 9.Current account ## Banks/Financial Institutions (b) Other loans from banks ^ Secured Foreign Currency Loan (Buyers’ credit) + Unsecured Foreign Currency Loan (Buyers’ credit) @ # ## + @ ^ 26.48 0.15 8. Secured by first charge on all current assets of parent and subsidiary company and fixed assets of subsidiary company.03.63 366.83 12.Retention monies relating to capital expenditure .56 47.69 5.09 8.75% to 14.03.14 171.2012 31.2011 21.85 0.47 13.30 110.00 290.a.76 142.05 1.59 (` in Crores) Short term 31.

98 74.97 792.41 4.88 14.24 122.83 1.69 7.000/-)] (iii) Unclaimed amount of sale proceeds of fractional coupons of bonus shares issued in earlier years As at 31.06 242.26 25.087.72 1.03.97 9.89 crores)] 89.14 64.14 NoTE 10: oThER CURRENT LIABILITIES (a) Current maturities of Long term borrowings (Refer Note 4) (b) Current portion of other Long term liabilities (Refer Note 6) (c) Investor Education and Protection Fund # (i) Unpaid/ Unclaimed dividend (ii) Unpaid/ Unclaimed matured deposits [Current year NIL (previous year ` 15.296.03.2011 1.04 4.15 0.10 0.296.78 (d) Other Payables Stautory Payables Payable towards Central Sales Tax and VAT Payable towards Excise and Service Tax Payable towards TDS under Income Tax Payable towards Provident Fund.53 531.02 4. 2012.42 5.02 827.03.88 # There is no amount due and outstanding to be paid to the Investor Education and Protection Fund as at 31st March.50 crores)] Interest accrued but not due on borrowings Provision for other expenses [including ` 1.44 (` in Crores) As at 31.90 94. These amounts shall be paid to the Fund as and when they become due.61 260.04 4. 90 .84 9.28 9. Profession Tax and ESIC Payable towards other taxes Payable towards capital expenditure Payable towards Services received Payable towards Stores.03.087.88 crores due to Non-Executice Directors (Previous year ` 1.2012 1. spares and consumables Payable to Employees [including ` 2.34 70.2011 4.74 0.19 11.Notes to Consolidated Financial Statements NOTE 9: TRADE PAYABLES Trade Payables (Including Acceptances) As at 31.83 (` in Crores) As at 31.2012 5.00 crores due to Managing Director (Previous year ` 1.08 4.45 512.70 197.44 1.70 11.18 2.96 9.10 * 0.

94 0.67 6.16 79.88 0.35 6.93 0.05 1.49 4.89 0.91 33.22 0.09 B.010.08 8.52 10.80 7.98 544.18 3.08 1.02 1.48 0.04 1.96 5.35 12.14 1.03 0.74 34.11 Translation Difference A.44 Others 0.47 11. Tangible Assets: 1.40 3.38 Equipment 33.38 0.04 0.26) 0.61 50.21 11.08 92.98 1.68 Leasehold improvements 5.30 10.79 18.92 (0.98 Buildings 37.22 0.99 Office Equipment 32.08 94.01 0.09) 0.11 Translation Difference Additions /Transfer during the year Deductions /Transfer during the year As at 31.12 As at 01.05 21.83 0.06 10.39 0.68 Computer Software - Total Intangible Assets 70.61 1.70 0.45) 36.56 0.16 0.13 1.78 0.93 Vehicles 0.16 16.10 0.70 0.02 2.17 0.25 0.55 703.26 0.59 8.03.917.36 21.56 3.73 (0.98 1.52 0.34 0.69 58.06 22.28 11.26 490.33 9.75 47.22 4.01 1.259.08 Leasehold Land 98.73 31.70 3.04 0.58 1.04 0.04 77.03 0.64 0.07 0. Intangible Assets : 0.03.08 398.40 8.42 833.233.67 4.14 Trademark 22.81 4.75 120.91 3.23 18.26 14.26 3.249.64 516.06 Total Tangible Assets 1.84 111.03.022.Owned 7.07 2.48 17.94 537.07 465.99 Scientific Research: 0.97 398.45 0.987.26 0.00 88.34 7.272.98 5.02 19.78 3.13 517.70 4.87 (2.07 0.27 27.53 Assets givsen on Operating Lease : Tinting systems 13.28 3.02 2.03.66 Total (A+B) 1.78 56.58 12.30 Furnitures and Fixtures 44.05 0.11 Depreciation/Amortisation Impairment Net Block As at 01.03 36.00 0.10 25.27 3.12 As at 31.77) 5.42 3.99 0.04 17.11 Translation Difference Additions /Transfer during the year Deductions /Transfer during the year As at 31.31 Plant and Equipment 1.43 112.54 Notes to Consolidated Financial Statements .39 1.09 0.66 (2.20 11.47 0.68 42.48 12.52 0.Assets acquired on finance lease 0.60 0.51 0.30 37.25 4.97 56.54 Scientific Research: 1.24 0.91 26.26 Buildings 475.14 0.96 0.10 0.68 3.51 9.91 14.04.99 18.500.59 777.00 0.06 1.61 96.28 0.68 22.65 3.08 1.40 27.98 1.02 2.27 8.25 0.070.18 0.84 33.20 28.17 29.37 3.22 0.42 8.04.86 1.64 0.75) 19.82 .49 1.75 Asian Paints Limited Annual Report 2011-2012 Previous year 1.272.12 As at 01.26 14.15 0.90 122.18 36.25 11.02 7.19 2.03 0.80 703.27 8.56 0.35) 29.36 13.29 0.04 0.65 Freehold Land 122.07 0.30 7.83 14.03 1.66 3.58 6.68 5.15 (0.77 29.NoTE 11: FIXED ASSETS (` in Crores) Gross Block Additions /Transfer during the year Deductions /Transfer during the year As at 31.49 Leasehold Buildings 35.74 7.39 91 .75 99.81 0.12 As at 31.87 81.47 0.21 0.51 1.80 (0.12 14.97 1.22 29.104.03.01 123.61 123.55 656.68 0.81 613.987.39 7.16 0.23 0.15 0.23 Computer Software 47.44 0.64 0.05 11.22 0.44 0.19 1.04.92 7.63 0.58 101.

50 - 1. Unquoted Trade Investments: Investment in Equity Shares (a) Patancheru Enviro-tech Ltd.] Housing Development Finance Corporation Ltd.02) 0.50 0.53 0.(Previous year ` 39.2011 12.50 12.93% Rural Electrification Corporation Ltd. tax free bonds 2022 (1. Indira Vikas Patra and Defence Certificates deposited with Government Authorities [` 39.418 7.500/-)] Total Non-Current Unquoted Investments (I) 62. Quoted other Investments (i) Investment in Equity Shares Akzo Nobel India Ltd.52 B. other Investments: (a) Investment in Equity Shares SKH Metals Limited (b) Investment in Debt Instruments 7.00.46 218.Growth HDFC Fixed Maturity Plan 370D March 2011(5) .00.000 50.50 0.900 2.00.830 4.500 10/- 0.92.65.03 0.000 1.76 10/10/10/10/- Aggregate market value of Non-Current Quoted Investments: 92 . Apcotex Industries Ltd.01 0.476 1. A.49 0.Plan B .02 (0.Series XVI UTI Fixed Term Income Fund Series XI-II (400 Days) Growth JP Morgan Fixed Maturity Plan Series 6 Growth Total Non-Current Quoted Investments (II) Total Non-Current Investments (I) + (II) Figures in brackets indicate that of previous year.01 0.270) (2.00.44 62.000/- * 13.Notes to Consolidated Financial Statements NoTE 12: NoN CURRENT INVESTMENTS I.500/.01 0.22.000 3. (c) Narmada Clean Tech Limited (Previously known as Bharuch Eco-Aqua Infrastructure Ltd.30 0. Pan United Corp (ii) Investment in Mutual Funds Canara Robeco Fixed Maturity Plan Series 6-13 Month .72 210.01 10.838 shares allotted during the year) (d) Danish Company for Wood Less: Provision for diminution value of investment Nos.000 1.Growth .000 10/2/10/- 41.) (13.48 EGP 10/- 0. (b) SIPCOT Common Utilities Ltd.108 (4. Face value (`) As at 31.30 0.03.00.28 * 1.12 0.00 10.12 0.25 0.03. 20.626 4.01 5.00.78. [Formerly ICI (India) Ltd.09 41.44 69.000 1.01 0.00 61.03 0.02 II.00 10.00 56.476 units allotted during the year) (c) Investment in Government Securities National Savings Certificates.10.22.500) 10/100/10/- 0.00.2012 (` in Crores) As at 31.

97 23.47 # Secured against Bank Guarantee (` in Crores) NoTE 14: oThER NoN CURRENT ASSETS Long Term Trade Receivables (Refer Note 17) others: Finance Lease Receivables Employee Benefit Asset (Refer Note 30) Other Receivable 31.12 93 .68 (2.58 10.01 2.2012 31.03.58 4.35 0.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements (` in Crores) NoTE 13 : LoANS AND ADVANCES A.68) 106. 327.29 327.47 C.74 69.18 9. Secured and Considered good: Capital Advances # Unsecured and Considered good: (a) Capital Advances (b) Sundry deposits (c) Loans and advances to related parties .24 104.61 2. B.03 (2.Advances/claims recoverable in cash or in kind .2012 31.89 106.95 17.Advances to employees Unsecured and Considered doubtful: Other loans and advances: Advances/claims recoverable in cash or in kind Less: Provision for doubtful advances / claims recoverable in cash or in kind Non-Current Current 31.18 28.76 17.03.95 2.03.Balances with Government authorities .22 21.13 23.18 2.21 17.Advance contribution to Providend Fund trust .28 104.Advance contribution to Superannuation fund trust (d) Other loans and advances .2011 31.03.2012 31.12 115.Advance payment of Income Tax (Net) .10 186.89 23.03 1.22 0.21 2.67 117.69 40.03) 186.95 0.99 0.29 0.00 48.03.03 18.28 23.2011 1.03.51 1.59 48.2011 111.71 3.44 5.

00.00 5.00.00 5.00.00.000) (50.000) (50.00 20.00.2012 31.000 units matured during the year) SUNDARAM Fixed Term Plan Series Y – Growth (50.00.00. Face value As at As at (`) 31.00.00.00 10.000 units matured during the year) RELIGARE Fixed Maturity Plan Series V Plan A 368 Days Growth Plan (1.000 units matured during the year) KOTAK Fixed Maturity Plan Series 6 – Growth (50.00.000 units matured during the year) SUNDARAM Fixed Term Plan AO 367 Days (50.00.00.00.Series 71 – Growth Plan (1.00.Growth* (50.00.00.00.00 5.00.000 units matured during the year) BIRLA SUN LIFE Fixed Term Plan – Series CM Growth (1.000 units matured during the year) IDFC Fixed Maturity Yearly Series 33 – Growth (50.00.00.000 units matured during the year) JM Fixed Maturity Fund Series XIX Plan A – Growth Plan 412 (1.000) (50.00 5.00.00.00.000 units matured during the year) SUNDARAM Fixed Term Plan AN 367 Days (50.00.00.00.Series 1 – Growth (1.00 10.000) (50.000) 10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/- 5.00.00.00 10.000) (1.00.00.00 5.000) (50.03.00.Notes to Consolidated Financial Statements (` in Crores) NoTE 15 : CURRENT INVESTMENTS Quoted Investments in Mutual Funds: ICICI Prudential Fixed Maturity Plan Series 51 – 15 Months Plan E (50.00.000 units matured during the year) RELIANCE Fixed Horizon Fund – XIV – Series 1 – Growth Plan (2.00 5.00.000 units matured during the year) RELIGARE Fixed Maturity Plan-Series II Plan B 15 Months .00.000 units matured during the year) BIRLA SUN LIFE Fixed Term Plan Series CK Growth (1.00.000) (1.00.000) (1.00.000 units matured during the year) RELIANCE Fixed Horizon Fund .000 units matured during the year) DWS Fixed Term Fund .00.00.00.00 10.00.000) (50.00.00.000) (50.00.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 51 – 13 Months Plan C * (50.000) (1.00.00.000) (1.00.00 10.00 10.00.00.00.00 5.000) (50.000 units matured during the year) IDFC Fixed Maturity Yearly Series 36 Growth (1.00.000 units matured during the year) IDFC Fixed Maturity Yearly Series 35 Growth (50.000) (1.000) (1.00 10.000) (2.00.00.00.00.00.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 55 – 1 Year Plan B Cumulative (1.000 units matured during the year) UTI Fixed Maturity Plan-Yearly Fixed Maturity Plan Series Institutional Growth(12/10) (50.00.000 units matured during the year) Nos.00 10.00.000) (1.00.00 10.XVI .00.03.00 94 .00.00 10.2011 (50.00.000) (1.000 units matured during the year) SUNDARAM Fixed Term Plan AW 366 Days Growth (1.000) (1.00.00.00 10.000) (1.00.000) (50.00.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 55 – 1 Year Plan A Cumulative (1.000 units matured during the year) SUNDARAM Fixed Term Plan AV 366 Days Growth (50.00 5.00 5.00.

00.00.00.00.00 10.000) (1.000) 1.00.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 56 – 1 Year Plan A Cumulative (1.00.Yearly Series 41 – Growth (1.000 units matured during the year) KOTAK Fixed Maturity Plan Series 40 – Growth (1.00.00.2011 10.10.000 units matured during the year) IDFC Fixed Maturity Plan.00.000) (2.000 units matured during the year) SUNDARAM Fixed Term Plan AX 366 Days Growth (50.00.00.2012 31.00.Yearly Series 42 – Growth (50.00.00 10/10.00.000) (50.000) (50.00.00.000 units matured during the year) BIRLA SUN LIFE Fixed Term Plan Series CW Growth (1.000) (1.00 10.00.00 5.00 10.00 5.00.000 2.00.00.00.00.000 units matured during the year) IDFC Fixed Maturity Yearly Series 37 – Growth (1.000 units matured during the year) TATA Fixed Maturity Plan Series 31 Scheme C – Growth (50.00.000 units matured during the year) UTI Fixed Term Income Fund Series VII–V (366 Days) (2.00 20.10.00.00.00.00.00.00 10.00.000) (1.00.000 units matured during the year) UTI Fixed Term Income Fund Series IX–I ( 367 Days) – Growth (1. (1.000 units matured during the year) RELIGARE Fixed Maturity Plan – Series V – Plan E 370 Days – Growth (1.03.00 5.00.000 1.000 units matured during the year) IDFC Fixed Maturity Plan.00.00 95 .000 Face value As at As at (`) 31.00.00.00 20.00.000 units matured during the year) SBI Debt Fund Series-370 Days – 10 Growth (1.000 units matured during the year) RELIGARE Fixed Maturity Plan Series VI-Plan E-367 Days – Growth Plan (1.00 10.000 1.00.00 10.00.00.03.00 10.00.00.00 10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10.00 10.000) (50.00.00.00.00 10.00 11.00 5.00.00.00.000) (50.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements (` in Crores) NoTE 15 : CURRENT INVESTMENTS (Contd.000) (50.00.00.00.000) (1.00.00 5.00.000) (1.00 5.00.00.000 units matured during the year) RELIGARE Fixed Maturity Plan Series VI-Plan D-370 Days – Growth Plan (50.000 units matured during the year) ICICI Prudential Fixed Maturity Plan Series 56 – 1 Year Plan B Cumulative (50.00.00.00.000 1.00 10.000 units matured during the year) IDFC Fixed Maturity Plan Yearly Series 53 – Growth CANARA ROBECO Fixed Maturity Plan Series 6 – 13 Month – Plan B – Growth HDFC Fixed Maturity Plan 370D March 2011(5) – Growth – Series XVI ICICI Fixed Maturity Plan Series 56 1 Year Plan E Cumulative SUNDARAM Fixed Term Plan BN 366 days Growth IDFC Fixed Maturity Plan Yearly Series 52 Growth SUNDARAM Fixed Term Plan CA 366 days Growth Nos.000 units matured during the year) KOTAK Fixed Maturity Plan Series 42 – Growth (50.000 units matured during the year) SUNDARAM Fixed Term Plan BA 366 Days Growth (1.000 1.00.00.000) (1.00.00.) KOTAK Fixed Maturity Plan Series 37 – Growth (1.00.000) (1.00.00.00.00.000) (1.00.00.00 5.00.00.00 10.000) (1.000 50.00.000) (50.00.000) (1.00 10.

000 50.00.00.000 1.2012 31.00 5.00 10.000 50.000 50.00 4.00.00.000 50.00.00.000 50.000 1.00.000 50.000 50.00.00 5.00 263.00 5.00 5.00.00 50.00.2011 10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/10/5.00 341.02 285.00 5.00.000 50.000 50.000 50. Nos.Notes to Consolidated Financial Statements (` in Crores) NoTE 15 : CURRENT INVESTMENTS (Contd.00 10.00.00.000 50.00.000 50.03.00.00.51 25.) RELIGARE Fixed Maturity Plan Series X Plan E (371 Days) – Growth Plan IDFC Fixed Maturity Plan Yearly Series 54 Growth IDFC Fixed Maturity Plan Yearly Series 57 Growth DWS Fixed Term Fund-Series 94-Growth Plan ICICI Prudential Fixed Maturity Plan Series 60 – 1 year Plan F Cumulative SUNDARAM Fixed Term Plan CC 366 days Growth KOTAK Fixed Maturity Plan Series 68 – Growth DSP BLACK ROCK Fixed Maturity Plan – Series 23 – 12M – Growth SBI Debt Fund Series-367 Days-13-Growth BIRLA SUN LIFE Fixed Term Plan Series EE Growth TATA Fixed Maturity Plan Series 38 Scheme 1 – Growth TATA Fixed Maturity Plan Series 39 Scheme A – Growth SUNDARAM Fixed Term Plan CJ 366 Days Growth ICICI Prudential Fixed Maturity Plan Series 61-1year Plan A cumulative DSP BLACK ROCK Fixed Maturity Plan Series 32 – 12M Growth UTI Fixed Term Income Fund-Series X – VII (368 Day) SBI Debt Fund Series.00 5.000 50.00 10.03.367 Days – 16 – Growth TATA Fixed Maturity Plan Series 39 scheme D – Growth TATA Fixed Maturity Plan Sereis 39 Scheme E – Growth BIRLA SUN LIFE Fixed Term Plan Series EI Growth BIRLA SUN LIFE Fixed Term Plan Series EM Growth ICICI Prudential Fixed Maturity Plan Series 62 – 1year Plan B cumulative RELIGARE Fixed Maturity Plan Series X11 – PLAN C (368 DAYS) Growth DSP BLACK ROCK Fixed Maturity Plan Series 34 – 12M Growth IDFC Fixed Maturity Yearly Series 48 Growth HDFC Fixed Maturity Plan 370D FEB12 – Growth(2) Series XXI Growth DWS Fixed Maturity Plan Series 5 Growth Plan KOTAK Fixed Maturity Plan Series 75 – Growth UTI Fixed Income Fund – Series X-VIII (368Days) Growth RELIANCE Fixed Horizon Fund – XXI – Series 6 Growth RELIANCE Fixed Horizon Fund – XXI – Series 8 Growth DSP BLACK ROCK Fixed Maturity Plan Series 31–12M Growth HDFC Fixed Maturity Plan 370D FEB12 – Growth (3) Series XXI Growth Total Quoted Current Investments Unquoted Investment Treasury Bill .00 5.00.02 22.000 50.000 40.00.00 5.00 5.00.000 50.00 5. Face value As at As at (`) 31.00 5.000 1.00 5.00.00.00.000 50.000 50.000 50.00 5.National Societe General Bank Total Unquoted Current Investments Total Current Investments Figures in brackets indicate that of previous year.00.000 1.00 4.000 50.00 10.00.000 1.000 50.00.00.00 5.000 50.000 22.00 5.000 50.00.00.000 50.000 50.00.00 10.00 5.00 5.00.00 5.00 5.00.00 5.00.00 5.00.00.00 5.000 40.000 50.51 366.00 5.00.00 5.00.00.02 25.51 96 .00 5.00.

305.39 772.18 807.51 1.87 2.2012 31.06 2.99 620.51 1.80 28.12 62.36 28.25 7.41 1.77 0.01 1.2012 31.01 1.92 82.598.23 0.93 780.43 (` in Crores) NoTE 17 : TRADE RECEIVABLES Secured (a) Trade Receivables Considered good Considered doubtful Less: Provision for doubtful trade receivables Non-Current Current As at As at As at As at 31.32 22.03.75 603.23 1.01 1. spares and consumables (f) Stock-in-trade (acquired for trading) As at As at 31.89 1.39 565.03.10 Less: Provision for doubtful trade receivables 97 .2011 - - 0.51 1.03.50 Unsecured (a) Overdue for more than six months Considered good Considered doubtful (b) Others Considered good Considered doubtful 1.06 62.31 33.2011 538.14 32.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements (` in Crores) NoTE 16 : INVENToRIES (a) Raw materials Raw materials-in-transit (b) Packing materials (c) Finished goods Finished goods-in-transit (d) Work-in-progress (e) Stores.39 612.2012 31.01 8.60 573.92 814.38 781.03.51 39.87 0.24 30.03.98 570.51 442.83 808.06 99.51 1.58 32.2011 31.69 773.92 36.50 0.03.50 0.59 37.06 2.25 40.36 2.51 1.87 0.01 1.16 613.57 542.91 39.83 563.

80.271 units sold during the year) Face value As at As at (`) 31.66.57 18.414) (27.70 47.99 4.52 208.47.43.03.924 units sold during the year) TATA Floater Fund – Growth (6.97 395.766.667.80.05.03.2011 1.98 99. 10.000/10/10/10/10/10/10/10/- 45.221) (47.2011 (2.368.016.42 49.04 7.42 6.06 4.783 units sold during the year) KOTAK Floater Long Term – Growth (3.00 54.414.075.47. Other Bank balances (i) Margin money deposit (ii) Unpaid dividend (iii) Term Deposits As at As at 31.607 units sold during the year) SBI–SHF–Ultra Short Term Fund–Institutional Plan–Growth (3.70.33 116.568) (2.36.44.03.81 38.2012 31.03 14.568.18.74 10.00 1.051.33 55.051) (89.948.676.661 units sold during the year) TEMPLETON India Ultra Short Bond Super Institutional Growth Plan (7.016) (3.80.19 98 .80 3.13 units sold during the year) RELIGARE Ultra Short Term Fund – Institutional Growth (2.70.89 units sold during the year) CANARA ROBECO Treasury Advantage Super Institutional Growth Fund (47.80.43.03.36.Notes to Consolidated Financial Statements (` in Crores) NoTE 18 : CASh AND BANK BALANCES: A.47 93.667) (6.676) (3.368) 10/100/10/1.97 0.44.39 624.74 482.51.18.23 # Investment in liquid mutual funds Unquoted Investments in Mutual Funds: BIRLA SUN LIFE Savings Fund – Institutional – Growth (2.31 Nos.74.05.075) (7.91.91.24.55 10.05 units sold during the year) BIRLA SUN LIFE Short Term Opportunities Fund –Institutional Growth (89.901 units sold during the year) IDFC Money Manager Fund – Treasury Plan – Super Institutional Plan C – Growth (32.06 97.831 units sold during the year) ICICI Prudential Flexible Income Plan Premium – Growth (27.53 50.37.547 units sold during the year) SUNDARAM Ultra Short Term Fund Super Institutional Growth (1.84.84.10 10.37.74.66 17.766) (1.221.98 78.66.51.37 15.64.24.2012 31.84 19.948) (32. Cash and cash equivalents (a) Cash on hand (b) Balances with Banks: (i) Current Accounts (ii) Cash Credit Account (iii) Cheques on hand (iv) Deposit with bank (c) Investment in liquid mutual funds # (d) Others Investment in Fixed Deposit : Housing Development Finance Corporation Limited B.53 626.98 1.64.

211 5.93 13.28 0.72 0.03 Quoted HDFC Cash Management Fund – Treasury Advantage Plan Wholesale Daily Dividend TEMPLETON India Ultra Short Bond Super Institutional Growth (Quoted during the year) TATA Fixed Income Portfolio Fund C2 Institutional Growth HDFC Liquid Fund – Premium Plan – Growth IDFC Ultra Short Term Fund Growth RELIANCE Liquidity Fund Growth Option Global Templeton Bonds UTI Liquid cash plan Institutional–Daily Income Option–Reinvestment (9.000/100/10/10.00.2012 31.66 4.00.13 12.24 70.654 units sold during the year) BIRLA SUN LIFE Short Term Fixed Maturity Plan Series 29 Growth UTI Money Market Fund – Institutional Growth Plan BIRLA Cash Plus – Institutional Preminum Plan Dividend JM High Liquidity Fund – Super Institutional Plan Nos.22 89.93.28.04 1.931) (38.23 10.00 108.88 14.126 1.13.12.45 0.186 units sold during the year) UTI Treasury Advantage Fund-Institutional Plan (Daily Dividend Option) – Reinvestment UTI Treasury Advantage Fund-Institutional Plan (Daily Dividend Option) – Reinvestment UTI Money Market Fund – Institutional Growth Plan 2.01 77.525 7.2011 0.02 15.2012 31.400 (9.88 1.82.78 - 1.86 99 .14 0.03 1. (98.03.29 13.03.05 482.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements (` in Crores) # Investment in liquid mutual funds (Contd.882 2.03 48.03.14 40.72 0.34.77.31 7.00 5.21.25 67.00 23.84.041 47.61 0.) UTI Treasury Advantage Fund-Institutional Plan – Growth Option (98.721.931 units sold during the year) UTI Treasury Advantage Fund–Institutional Plan-Growth (38.72 395.000 48.97 6.03.07.25 476.966 8.01 5.2011 1.98 5.320 58.721) 1.19.102 157 133.68 84.000/0.98 (` in Crores) NoTE 19: oThER CURRENT ASSETS Interest accrued on investments Period end quantity discount receivable Royalty receivable Income tax refund receivable Duty Drawback receivable Insurance claim receivable Other receivable As at As at 31.000/10/1.61 0.99.45.132 10/10/10/10/10/10/- 69.764 Face value As at As at (`) 31.000/1.186) 6.521 60.98 355.

63 1.01 Year 2010-11 8.45 0.19 1.42 6.377.08 23.48 12.610.26 8.13 10.81 8. 2011.49 0.84 0.45 2.03 32.03 5.82 0.41 Year 2010-11 0.482.472.66 30.Notes to Consolidated Financial Statements (` in Crores) NOTE 20 : REVENUE FROM OPERATIONS (a) Sale of products: Home Market (Net of Returns) Exports Turnover Less: Discounts Sale of products (Net of Discounts) (b) Revenue from services: Revenue from Home Solutions operations Revenue from painting and related services (c) other operating revenues: Processing and service income Scrap sales Lease rent Year 2011-12 10. 100 .04 31.31 107.29 8.50 4.47 67.53 (` in Crores) NoTE 21 : oThER INCoME (a) Interest (i) From Current investments (ii) From others (b) Insurance claims received (c) Dividend received (i) From Non-Current investments (ii) From Current investments (d) (e) (f) (g) (h) (i) Royalty Profit on sale of long-term investments (Net) # Profit on sale of short-term investments (Net) Profit on sale of fixed assets (Net) Net gain on foreign currency transactions and translations (Other than considered as finance cost) Other non-operating income Year 2011-12 1.62 6. these Long-term investments are classified under Current investments as their maturity period is less than 12 months.47 2.91 10.87 15.69 3.07 10.00 400.91 35.98 # As at 31st March.23 22.76 307.24 10.00 33.17 45.93 156.48 0.303.11 3.621.778.57 3.06 25.04 37.377.56 31.53 41.50 12.25 10.72 7.95 127.

31 542.25) 33.06 62.83 (169.869.82 4.77 34.93 36.41 703.97 Year 2010-11 388.95) 613.07 33.89 (151.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements (` in Crores) NoTE 22: (A) CoST oF MATERIALS CoNSUMED Raw Materials Consumed Opening Stock Add: Purchases Less: Closing Stock Packing Materials Consumed Opening Stock Add: Purchases Less: Closing Stock Year 2011-12 Year 2010-11 542.94 525.80 910.47 3.51 808.868.947.06 62.33 42.41 703.12 39.490.42 379.40 23.97 25.00 36.18 854.705.36 28.43) (` in Crores) NOTE 23: EMPLOYEE BENEFITS EXPENSE Salaries and wages Contribution to Provident and other Funds (Refer Note 30) Staff welfare expenses Year 2011-12 450.99 101 .60 5.57 4.248. WORK-IN-PROGRESS AND STOCK-IN-TRADE Stock at the beginning of the year Finished Goods Work-in-Progress Stock-in-trade Total Stock at the end of the year Finished Goods Work-in-Progress Stock-in-trade Total Changes in inventories Increase in Excise duty on finished goods CHANGES IN INVENTORIES OF FINISHED GOODS.70 453.52 30.55 756.08 (206.30 (172.53 229.36 28.22 200.21 534.91 4.425.91 3.50 620.16 62.96 41.83 466.45 732. WORK-IN-PROGRESS AND SToCK-IN-TRADE 613.84 4.34 890.92 850.720.77 ToTAL CoST oF MATERIALS CoNSUMED (B) PURCHASES OF STOCK-IN-TRADE (C) ChANGES IN INVENToRIES oF FINIShED GooDS.59 5.32) 17.52 39.18 719.

74 (0.72 20.88 0.44 2.21 102 .58 319.59 10.56 51.58 12.25 3.98 3.41 2.61 342.14 62.10 17.97 305.52 2.50 Year 2010-11 27.60 0.25 7.17 3.70 87.87 12.39 1. stationery and communication expenses Travelling expenses Donations Commission to Non-Executive Directors Directors’ sitting fees Auditors’ remuneration Bank charges Net loss on foreign currency transactions and translations (Other than considered as finance cost) Premuim on forward exchange contract amortized Information Technology expenses Legal and professional expenses Training and recruitment Freight and handling charges Advertisement and sales promotional expenses Cash discount Commission on Sales Bad debts written off Provision for doubtful debts and advances Miscellaneous expenses Year 2011-12 27.17 1.53 30.35 46.74 60.93 55.67 8.70 2.89 0.46 4. spares and consumables Power and fuel Processing charges Repairs and Maintenance: Buildings Machinery Other assets Rent Rates and taxes Water charges Insurance Printing.24 9.55 4.92 23.82 2.91 18.44 1.820.85 24.77 15.70 2.11 24.13 23.34 37.08 1.69 0.28 410.94 46.65 (` in Crores) NoTE 25 : FINANCE CoSTS Interest on Bank Borrowings Interest on Bill Discounting Interest on Foreign Currency Loans Net loss on foreign currency transactions and translation on borrowings (considered as finance cost) Other Interest Year 2011-12 9.41 11.65 396.11 399.23 1.20 40.41 29.08 47.21 5.56 1.72 1.22 1.89) 84.97 Year 2010-11 7.06 84.Notes to Consolidated Financial Statements (` in Crores) NOTE 24 : OTHER EXPENSES Consumption of Stores.14 1.465.39 75.96 22.77 0.93 74.40 7.72 15.63 7.

03.37 302. Commitments: Estimated amount of contracts remaining to be executed on capital account and not provided for Letters of Credit and Bank guarantees issued by bankers and outstanding as on 31st March. Based on the information presently available. Therefore. the likely impact is not expected to be material.03. Contingent Liabilities Guarantee given: i.2012 31.03. no further provision has been made in these financial statements for this matter.2012 Currency Number of Contracts USD 31 Buy Amount (USD in mn.2012 31. 2012. to bank on behalf of parent Company’s dealers in respect of loans granted to them by a bank for acquiring dealer tinting systems ii.2011 2. The forward exchange contract outstanding as at 31st March.33 10. As at As at 31. Berger International Limited and its subsidiary. (` in Crores) b) 1. the likely outcome of this trial cannot be determined with any reasonable certainty.03.49 10. 3.54 82.72 9.58 5. are engaged in litigation initiated by its former Regional Managing Director.45 173. Berger Paints Trinidad Limited filed a counter claim for the recovery of the amounts due from former Regional Managing Director.03.32 Indian Rupee Equivalent (` in Crores) 10. to others Claims against the Company not acknowledged as debts i. Berger Paints Trinidad Limited.) 21. in the event that this case is ruled against the Group. 2.03. 3085 of 2004. based on management’s best estimate.37 70. ii. The Company does not enter into any derivative instruments for trading or speculative purposes. This matter is subject to Trinidad and Tobago’s High Court Action No.13 8.) 109.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements NoTE 26: Contingent Liabilities and commitments: a) 1.42 (` in Crores) As at As at 31.58 The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. 3.07 As at 31. 2012 is as under:As at 31. Tax matters in dispute under appeal Others 93.2011 Indian Rupee Currency Number of Buy Equivalent Contracts Amount (` in Crores) (USD in mn.39 103 .54 USD 16 2.02 2.2011 356. The Company upon discontinuing his services has paid him compensation as per his contract of employment and the same has been charged to income statement. However.

2011 – 31st March.00% 75.00% 100. 2012 1st April.10% % of Holding as on 31st March. 2012 1st April.00% 60.00% 75.Notes to Consolidated Financial Statements NoTE 27: Details of Subsidiaries and Joint Venture: Subsidiaries: The subsidiary companies considered in the consolidated financial statements are: Direct Subsidiaries : Name of the Company Asian Paints (Nepal) Private Limited Asian Paints (International) Limited Asian Paints Industrial Coatings Limited Multifacet Infrastructure (India) Limited Maxbhumi Developers Limited AP Coatings Limited * Indirect Subsidiaries: i) Subsidiaries of the wholly owned subsidiary. Samoa Paints Limited Berger International Limited ii) * Indicates increase in stake during the year Subsidiary of Asian Paints (South Pacific) Limited : Fiji Islands 100. 2011 – 31st March.30% 100.00% 100. the accounts have been submitted to the Registrar of the Companies for striking off the name from the list of companies.A.00% 100. 2011 – 31st March. 2012 1st April.00% % of Holding as on 31st March. 2012 1st April 2011 – 31st March. 2010 Name of the Company Asian Paints (South Pacific) Limited* Asian Paints (Tonga) Limited Asian Paints (S.00% 100. 2011 – 31st March.00% 60.) Limited Asian Paints (Vanuatu) Limited Asian Paints (Lanka) Limited * Asian Paints (Bangladesh) Limited Asian Paints (Middle East) LLC SCIB Chemicals S. 2011 – 31st March. 2011 – 31st March. 2012 Country of Incorporation Nepal Mauritius India India India India % of Holding as on 31st March.00% 99.00% 100.E. 2012 1st April. liabilities and business to shareholder Asian Paints (South Pacific) Limited.00% 1st April. 2012 1st April. 2011 – 31st March. 2012 1st April. 2012 1st April. 2011 – 31st March.78% 49.I. Asian Paints (International) Limited. 2012 1st April.00% 80. 2011 – 31st March. Mauritius Country of Incorporation Fiji Islands Kingdom of Tonga Solomon Islands Republic of Vanuatu Sri Lanka Bangladesh Sultanate of Oman Egypt Samoa Singapore % of Holding as on 31st March.00% 60.00% 50.00% 100. 2011 51.00% 100. 2011 – 31st March.86% 89.15% 100. 2012 * Incorporated on 30th November. 2012 1st April. 104 . 2012 Taubmans Paints (Fiji) Limited Taubmans Paints (Fiji) Limited has ceased trading and has transferred its assets.00% 100.00% 100. 2012 1st April. 2011 – 31st March. 2011 – 13th March. 2011 51. 2011 – 31st March. 2012 1st April. 2011 – 31st March.18% 89.78% 49.00% 100. 2012 53. 2012 1st April.00% 80. 2011 – 31st March.10% Accounting period 1st April. 2012 51.00% Accounting period 15th March.00% 98. 2011 – 31st March.00% 50.00% 100. 2012 1st April.00% 60.

2012 whereby AP Coatings Limited and PPG Coatings India Private Limited (subsidiary of PPG Industries Securities Inc.00% 100. wherein the parent company has 50% equity participation. 2011 – 31st March. 2011 – 31st March. Limited Berger Building Services (Singapore) Pte. 2012 105 . 2011 . 2011 – 31st March. U.00% 1st April. 2011 – 31st March.00% 70. 2011 – 31st March.00% 1st April. 2012 Berger Paints Emirates Limited vii) Subsidiaries of Lewis Berger (Overseas Holdings) Ltd.00% 100. 2012 1st April. 2012 Berger Contractor (Singapore) Pte. 2012 Nirvana Investments Limited vi) Subsidiary of Nirvana Investments Ltd. The Scheme then provides for the demerger of the Liquid Industrial Paints. U.A.S..K. U.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements iii) Subsidiaries of Berger International Limited Country of Incorporation Singapore Singapore % of Holding as on 31st March.00% 100. Powder Coatings and Protective Coatings businesses from APPG into Asian Paints Bahrain 100.K.K.. Ltd. 2011 – 31st March.00% 1st April.* (incorporated in August. 100.K. 2012 Subsidiary of Berger Building Services (Singapore) Pte. Singapore 100.00% 1st April. 2012 1st April. 2012 Name of the Company Berger Paints Singapore Pte. U. 2012 100. Subsidiary of Enterprise Paints Limited Isle of Man.00% 100. Singapore in October. 2012 1st April.S.A.. 2011 – 31st March.00% 100. 2011 – 31st March.00% 100.L.00% 70.00% 100.00% 100. wherein the parent company has 50% equity participation.00% 51. Asian Paints PPG Ltd. 2011) a second joint venture between the parent company and PPG Industries Securities Inc. *Formation of Second Joint Venture with PPG Industries Inc. Isle of Man. 2011 – 31st March. 2012 1st April. Limited* v) *Struck off from the list of companies by Registrar of Companies. 100. a joint venture between the parent company and PPG Industries Securities Inc.00% % of Holding as on 31st March. U. 100. U. 2012 viii) Subsidiary of Universal Paints Limited: Berger Paints Bahrain W. in India) will merge with Asian PPG Industries Limited (APPG) (first Joint Venture between Asian Paints and PPG). 2011 – 31st March.00% 100. ix) Joint Venture : Asian PPG Industries Limited..E. 2011 – 31st March. Limited Enterprise Paints Limited Universal Paints Limited Lewis Berger (Overseas Holdings) Limited iv) Isle of Man.00% Accounting period 1st April. a Composite Scheme of Restructuring has been filed with the Hon’ble High Court of Judicature of Bombay in February.A. 2012 1st April. USA : To give effect to the formation of the Second Joint Venture.00% 100.L.00% 1st April. 2011 – 31st March.00% 100. 2011 100.. U.00% 1st April. Berger Paints Jamaica Limited Berger Paints Trinidad Limited Berger Paints Barbados Limited Jamaica Trinidad Barbados 51.00% 100.

the audited consolidated financial statements of Asian PPG Industries Limited (hereinafter referred to as JV). 2012. (iii) The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible.00% 1st April.04 (-) Contingent Liabilities 11.00% 100. Losses applicable to minority in excess of the minority’s interest in the subsidiary’s equity are allocated against the interests of the group. (v) The unamortized carrying value of goodwill is tested for impairment as at each balance sheet date. The results of subsidiaries acquired or disposed off during the year are included in the consolidated statement of profit and loss from the effective date of acquisition or up to the effective date of disposal. 0. income and expenses.71) (-) Capital Commitments 3. The same is subject to the approval of the Hon’ble High Court of Judicature of Bombay and other regulatory approvals as may be required.22 (6. 2012 is as follows – (` in Crores) Name of the Company % of Shareholding 50% 50% Amount of interest based on accounts for the year ended 31st March. The “Appointed Date” to give effect to the above has been fixed as 1st April. 2011). 2012 Faaber Paints Private Limited PPG Asian Paints Lanka Private Ltd* * Incorporated in April 2011. have been consolidated using proportionate consolidation method. NoTE 28: Principles of consolidation (i) (ii) The financial statements of Asian Paints Limited together with audited financial statements of its subsidiaries and joint ventures as described in Note 27 have been considered for the purpose of consolidation. The financial statements of the parent company and its subsidiaries and joint venture as described in Note No. • • The parent company's share of each of the assets. as appropriate.96) 0. income and expenses of JV has been included in the consolidated financial statements.03) Asian Paints PPG Ltd.Notes to Consolidated Financial Statements PPG Limited (second Joint Venture Company between Asian Paints and PPG. Liabilities 121.29 (86. U.00% 100. (iv) Minority interest in the net income and net assets of the consolidated financial statements are computed and shown separately. 2011 – 31st March. income and expenses related to the Company’s Interest in the JV as at 31st March. x) Direct subsidiary of Asian PPG Industries : India Sri Lanka 100. 2012 19th April. (Previous year ` Nil).71 (192.73 (1. 2012 in relation to the parent company's interests in the JV along with the other venture. liabilities. 27 have been combined to the extent possible on a line by line basis by adding together like items of assets. NoTE 29: Pursuant to Accounting Standard (AS 27) – Financial Reporting of Interests in Joint Venture.21 (295. the Joint Venture between the parent company and PPG Industries Securities Inc.. • No contingent liabilities and capital commitments have been incurred as at 31st March.68) (-) Expenditure 330.02 (-) Income 344. in the same manner as the parent company’s financial statements. 2012* Assets 239. All significant intra group balances and transactions have been eliminated on consolidation. liabilities. The aggregate amounts of assets.A.11 (-) * Figures in brackets indicate that of previous year. The amounts shown in respect of reserves comprise the amount of the relevant reserves as per the balance sheet of the parent company and its share in the post – acquisition increase in the relevant reserves of the subsidiaries/joint venture.S. 106 . 2011 – 31st March.87) 0.81 (278. liabilities.22) (-) Asian PPG Industries Ltd. incorporated in August.

31) 1.37 ( 14.96 (143.91 0. Leaving Indemnity and Medical Plan (Unfunded) 31.81 12. because of the limitation as per AS-15 (Revised) and unrecognised actuarial gains/losses Net Liability/(Asset) Amounts in Balance Sheet Liability Assets Net Liability/(Asset) Expense Recognised in the Statement of Profit and Loss Current Service Cost Interest on Defined Benefit Obligation Expected Return on Plan Assets Net Actuarial Losses/(Gains) Recognized in Year Past Service Cost Adjustment for current year unutilised asset Total.17) (2.83) 3.61) (0.21 (13.75) 14.23 (9. Pension.34 163.65 (12.67 (175.34 14.65) 0.95) (10.37 0.23 2.84 1.45) 12.2011 (3.34 107 .91 (1.03.65) 15.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements NoTE 30: Employee Benefits (1) Short term employee benefits : The liability towards short-term employee benefits for the year ended 31st March.32 11.42) (8.42) 8.54) 15.21 9. (` in Crores) Gratuity and Pension (Funded) 31.09) 11.65) 14.81) (15.05) (15.43 (0.43 4.37 12.88 31.2012 31. 2012 has been recognised in the Statement of Profit and Loss. Leaving Indemnity and Medical benefit plans.63 0.70 15.83 1.82 (1.41 (19.75 11.42) (2.28) 134.42 0.03.82 15.38 (0.2012 Amount Recognised in Balance Sheet Present Value of Funded Obligations Fair Value of Plan Assets Present Value of Unfunded Obligations Amount not recognised as Asset.54) 14.12 15.65) (2.2011 Pension.02 0.21 0.82 12.20) 4.22 7.30 (18.37 10.34 1. Included in “Employee Benefit Expense” Actual Return on Plan Assets Movement in the asset recognised in the balance sheet: Opening Net (Asset)/Liability Currency translation difference Total charge as above Contribution Closing Net (Asset)/Liability (10.46) (10. (2) Post-employment benefits: The following disclosures are made in accordance with AS-15 (Revised) pertaining to Defined Benefit Plans: (a) Gratuity.03.80) (10.83) (15.24 2.82 14.15) 15.03.11 1.34 9.

37 (1.81 6.83 1.35% 143.96 15.81 14.17) 134.83 (0.2012 Reconciliation of Benefit Obligations and Plan Assets for the Period Change in Defined Benefit Obligation Opening Defined Benefit Obligation Current Service Cost Interest Cost Actuarial Losses/(Gain) Past Service Cost Liability assumed on transfer of employees Annuities Purchased Exchange Difference on Foreign Plans Member Contributions Benefits Paid Closing Defined Benefit Obligation as at 31st March.15 0.75 (0. Leaving Indemnity and Medical Plan (Unfunded) 31.05 6.5 to 10% 6. 2012 Summary of the Actuarial Assumptions Discount Rate Expected Rate of Return on Assets 5.12) 0.29 9.03.67 120.37 (0.85) 13.5 to 8.15 12.88 (11.01 0.75) 15.5% 5.54) 15.75 11.88 31.2011 Pension.5% 5. 2012 Change in Fair Value of Assets Opening Fair Value of Plan Assets Expected Return on Plan Assets Actuarial Gain/(Losses) Fund received on transfer of employees Contributions by Employer Annuities Purchased Exchange Difference on Foreign Plans Member Contributions Benefits Paid Closing Fair Value of Plan Assets as at 31st March.03.67 8.17 (0.25 to 10.37 10.28 1.47 (0.77 (8.96 9.2012 31.2011 108 .83) 163.48 0.67 6.12 15.75) 134.38 (2.46 7.25 to 8.88 0.65 (1.02 1.5% 5.62) 1.69 0.88 (11.5% 6.18 (1.77 (8.28 126.17) 143.31) 1.83) 175.03.23 3.80 1.47) 0.84 1.18 0.Notes to Consolidated Financial Statements (` in Crores) Gratuity and Pension (Funded) 31.0 to 8.96 0.0 to 8.03.20) 4.

2012 is as given below: (` in Crores) Particulars Present value of benefit obligation at period end Plan assets at period end.18 (15.06) (2. at fair value.30 10.57) 15. promotion and other relevant factors such as supply and demand in the employment market.46 126.25 4.25% 109 .48 31.5% to 8.2009 (` in Crores) 31.96 143.85 1. The guidance on implementing AS-15. The Group estimates that the amount to be contributed to the gratuity and pension fund for the financial year 2012-13 will be ` 5.29 5.4 crores.03.6% 8. 2012 218.03.) The details of benefit obligation and plan assets of the provident funds as at 31st March. 2011.38) 13. 2011.18 1.61 (0.83 (2.60) - The estimates of future salary increases. the actuary has expressed an inability to reliably measure provident fund liabilities. seniority. Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states that benefits involving employer established provident funds.05) (0.57 120. (This being the first year of valuation.16) 0. The provident fund assets and liabilities of the parent and one of its joint venture (Asian PPG Industries Ltd. Accordingly the related information were not exhibited.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements Experience Adjustments for the current and previous Four periods 31.17) (0.67 175.28 11. Till 31st March.56 218.74 (4. The actuary has accordingly provided a valuation and based on the below provided assumptions there is no shortfall as at 31st March.09 111.) is managed by its respective provident fund trusts.60) 134. considered in actuarial valuation.16 (13.2010 31.2012 Gratuity and Pension (Funded) Defined Benefit Obligation Plan Assets Surplus Experience adjustment on plan Liablities Experience adjustment on plan assets 163. 2012 8. restricted to Asset recognised in balance sheet 31st March.62) 115.03.12) (2.12 (15.88 (15. take into account the inflation.19 0.05 (10.05 125.88) (0.18) (2.88 10. pending the issuance of the guidance note from Institute of Actuaries of India.27 16. The Institute of Actuaries of India has issued the final guidance for measurement of provident fund liabilities during the quarter ended 31st December.56 - (b) Provident Fund Assumptions used in determining the present value obligation of the interest rate guarantee are as under: Particulars Discount Rate Statutorily Guaranteed interest rate 31st March.47) 95. 2012.2008 Pension and Medical Plan (Unfunded) Defined Benefit Obligation Plan Assets (Deficit) Experience adjustment on plan Liablities Experience adjustment on plan assets i) ii) 15. which require interest shortfalls to be recompensed are to be considered as defined benefits plans.03 0.15 8.2011 31.03.46) 15.03. comparatives of previous period is not available.

79 21. The lease rentals are payable by the parent company on a monthly and quarterly basis.42 0. A refundable security deposit is collected at the time of signing the agreement.33 0. the Joint Venture has entered into an arrangement to obtain computer equipments.. The lease period varies between four to ten years. depreciation and impairment is given in Note ‘11’ to the Balance Sheet. The lease rentals are reviewed periodically taking into account prevailing market conditions.81 (` in Crores) As at 31. (c) Future minimum lease rentals receivable as at 31st March.03.19. (Previous year NIL) (e) The initial direct cost relating to acquisition of tinting system is capitalised. 2012 as per the lease agreements: As at 31. 2012 as per the lease agreements: As at 31. on non-cancellable operating lease for tenure ranging from twenty four months to forty eight months.00 0.03.59.26 (d) Future minimum lease rentals payable as at 31st March. the following information is given: I.2012 0. (d) Total amount of contingent rents recognised as income – ` NIL.91 87.2012 i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years Total 9.24 843. The lease normally ranges for a 5 year period.91 110 . computers and other systems hardware on an operating lease basis. mixing racks.per share) Basic and diluted earnings per share attributable to shareholders in rupees (face value . (b) Certain subsidiaries provide tinting systems to their dealers on an operating lease basis.59. (f) II.73 988.` 10/.03. cars etc. The equipment shall be used only to tint the products of the lessor.779 2010-2011 87.71 Not later than one year Later than one year and not later than five years Later than five years Total The information pertaining to future minimum lease rentals receivable is based on the lease agreements entered into between the respective companies and the dealers and variation made thereto.2011 8. (` in Crores) As at 31.19.91 843.` 10/. (a) The parent company has provided tinting systems to its dealers on an operating lease basis.08 988.per share) Profit attributable to shareholders before exceptional item as per Statement of Profit and Loss (` in crores) Profit attributable to shareholders as per Statement of Profit and Loss (` in crores) Weighted average number of equity shares outstanding 2011-2012 103. The information on gross amount of leased assets. (c) In addition.12 12. A security deposit is collected at the time of signing the agreement.24 9.39 0.27 0.77 21. As per the lease agreement the Joint Venture does not have an option to purchase the assets. The lease rentals are payable monthly by the dealers. certain overseas subsidiaries have also taken certain assets on operating lease. (a) The parent company has taken cars.73 9.779 NoTE 32: Pursuant to the Accounting Standard (AS 19) – Leases.2011 0.08 103.38 0.22 12.Notes to Consolidated Financial Statements NOTE 31: EARNINGS PER SHARE Basic and diluted earnings per share before exceptional item in rupees (face value .03. (b) In addition.

2011 Minimum Unearned Present lease finance value payments Income 0.26 0.04 (0. Future minimum lease rentals receivable as at 31st March. Contingent Liabilities and Contingent Assets.35 0.38 0.34 9.46 (` in Crores) i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years Total As at 31.04 0.06 0.03.01 0.73 0. 111 .38 0.03.14 0.94 0.91 (0.50 8.06 0.59 0.64 crores (Previous year ` 12.53 The information on gross amount of leased assets.19 0.40 0. (f) III. (2) Provision for warranties represents management’s best estimate of the liability for warranties granted on paints by some of the subsidiaries based on past experience of claims.65 0.31 (0.40 0.2012 Minimum Finance charge Present lease allocated to value payments future periods 0.24 0.93 2010-11 1.25) 1. depreciation and impairment is given in Note ‘11’ to the Balance Sheet.61 1.13 0. 2012 as per the lease agreements: As at 31.12 0.15 Provision for Sales Tax (1) 2011-12 8.10 1.21 0.15 0.25 2010-11 1.01 0.36 0.59 (` in Crores) i) ii) iii) c) IV. 2012 is as follows: (` in Crores) Provision for Excise (1) 2011-12 Opening Balance Additions/(writeback) Utilisations Reversals Currency translation Closing Balance 1.61 Provision for Warranties (2) 2011-12 1.56 NoTE 33: Pursuant to the Accounting Standard (AS 29) – Provisions.05) (0. the disclosure relating to provisions made in the accounts for the year ended 31st March.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements (e) Lease payments recognised in the statement of profit and loss for the period is ` 12. plant and equipment on finance lease which effectively transferred to the respective subsidiaries substantially all of the risks and benefits incidental to the ownership.36 crores). a) b) Not later than one year Later than one year and not later than five years Later than five years Total As at 31. Future minimum lease rentals payable as at 31st March.10 0.23 0.19 0.02 0.11 0.33 0.2011 Minimum Finance charge Present lease allocated to value payments future periods 0.46 0.16) 0.02 0.01) 0.23 1.11 0. a) b) Total amount of contingent rents recognised as expense – ` NIL.05 0. 2012 as per the lease agreements: As at 31.2012 Minimum Unearned Present lease finance value payments Income 0.03. (Previous year ` NIL) Certain subsidiaries have taken property.44 0.17 1.69 0. Certain subsidiaries have leased certain of its plant and equipment on finance lease which effectively transferred substantially all of the risks and benefits incidental to the ownership.44 0.03.05 0.72 0.95 2010-11 8.16 0.91 (1) Excise and Sales Tax provision is made towards matters disputed at various appellate levels.

2012. Vivek Subramanian.29 1. Abhay Vakil Mr. S.08 0. I.22 1.50 0. K. 2012) 1.47 1.80 0.85 0.46 3. Directors/Key Management personnel of subsidiaries/joint venture: Mr.13 0. The contractual terms of agreement for appointment of Mr.43 26. (` in Crores) Particulars Key Management Personnel∧ 2011-12 2010-11 Sale of goods Purchase of goods Processing of goods (Expense) Other recoveries Remuneration Commission to Non-Executive Directors Sitting Fees Paid to Non-Executive Directors Other services Retiral Benefits Donation Purchase of Assets Sale of Assets Contributions during the year Outstanding as at 31st March: Loans Amount receivables Amount payable 2. 2012.89 0.35 0.Notes to Consolidated Financial Statements NoTE 34: Information on related party transactions as required by Accounting Standard (AS) 18 for the year ended 31st March.83 1.93 4.09 3. Mr.47 10. 2012) Additional Director. B. Managing Director & CEO of the Company with effect from 1st April.06 Employee benefit Promoters and their plans where control relatives having exists control∧ Others 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 ^ Key management personnel and relatives of promoters who are under the employment of the Company are entitled to post employment benefits and other long-term employee benefits recognised as per AS-15 (Revised) Employee Benefits in the financial statements.f. Managing Director & CEO (w. Warren McDonald. Amar Vakil Mrs. B. Anand * * Managing Director & CEO (upto 31st March. Ina Dani Designation Non-Executive Chairman Non-Executive Vice Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director 112 . Murty * Mr.06 0. Ashwin Choksi Mr.38 228.22 0.20 23. Anand has been appointed as the Additional Director. Jagdish Acharya Promotors and their Relatives having control: Directors: Mr.e.34 0. Ashwin Dani Mr. M.88 0. K. the same is not included above. Mr. Jaideep Nandi. Mr. P M Murty as Managing Director & CEO came to an end on 31st March.24 Companies Controlled by Directors/Relatives 5.52 0.29 0.19 10. K. 1st April.00 1.83 0.88 0. 2. Mr.51 0. Jaiswal.42 6.44 0. Mahendra Choksi Mr. S.30 2.52 193. 2012. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation. Mr.00 12. 3. Key managerial personnel : Mr. P.

Pvt. Ltd. Murahar Investments and Trading Co. Pvt. Ltd. Mr. Ltd. Suptaswar Investments and Trading Co. Ltd. Vijal Holding & Trading Co. Express Transport Pvt. Ltd. Ltd. Ltd. Other entities over which there is a significant control: Asian Paints Charitable Trust 113 . (formerly known Ariza Holdings Limited) Al . Pvt. Ltd Navbharat Packaging Industries Ltd. ELF Trading and Chemicals Mfg. Ltd. Hitech Plast Ltd. 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 6. a relative of parent Company’s Non-Executive Director is also on the board of a subsidiary company and a joint venture. Rangudyan Insurance Broking Services Ltd. Ltd. a) Mr. Ltd. Rupen Investment and Industries Pvt. Ltd. PPG Industries Inc. Ltd. Ltd. Oman 5. Omega Properties Pvt. Ltd. Pvt. Manish Choksi** Mr. Vikatmev Containers Ltd. UAE ABM Santo Asset Management Unit Port Vila Hardware Aladdin Investments Limited PPG Industries Securities Inc. Asteroids Trading and Investments Pvt. Ltd. Resins and Plastics Ltd. Satyadharma Investments & Trading Co. Ricinash Oil Mills Ltd. Castle Investment and Industries Pvt.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements Relatives of promoters who are under the employment of the company: Mr. Ltd. Ltd. Jalaj Dani. Kalica Paper Industries Pvt. ISIS Holding & Trading Co Pvt. Clear Mipak Packaging Solutions Ltd. Elcid Investments Ltd. Ltd. a relative of parent Company’s Non-Executive Vice Chairman is also Executive Chairman of Berger International Limited and director on some of the subsidiary companies. Solomon Islands Sultan Bin Sulayem. Ultramarine & Pigments Ltd. Haish Holding & Trading Co Pvt. Express Engineering and Construction Pvt. Ltd.Hassan Group. Unnati Trading and Investments Pvt. Ltd. Companies over which the Directors have significant influence or control : AR Intertect Design Pvt. Ltd. Pragati Chemicals Ltd. Gujarat Organics Ltd. Ltd. Sudhanva Investments and Trading Co. Suryakant Paint Accessories Pvt. Pvt. Ltd. Ltd. Dakshina Properties Pvt. Ltd. Himanshu Holdings Pvt. Ltd. Sapan Investments Pvt. Jalaj Trading and Investments Co. Ltd. S. Hiren Holdings Pvt. Dani Research Foundation Pvt. Dani Finlease Ltd. Doli Trading and Investments Pvt. Lambodar Investments & Trading Co Ltd Lyon Investment and Industries Pvt. PPG India Private Ltd. Jigish Choksi Mr. Sadavani Investments and Trading Co. Tru Trading and Investments Pvt. Ltd. Ltd. Ltd. Ltd. Pvt. promoters and affiliates of subsidiary companies/joint venture: LKP Hardware. Express Restaurant Pvt. Ltd. Jalaj Dani * Mr. Centaurus Trading and Investments Pvt. Geetanjali Trading and Investments Pvt. Jaldhar Investments and Trading Co Pvt. Aegis Estates Ltd. Suprasad Investments & Trading Co. Manish Choksi. Nehal Trading and Investments Pvt. Varun Vakil * ** 4. b) Associates. Ltd. Coatings Specialities (India) Ltd.C.

40 (40.60 (71.658.86 9.71 655.39 18.789.75 152.62 73.13 1.40 119.29 110.92 1.10 138.16 135.79 653.500.683.26 18.58 0.79 7.164.41 191.14 – 17.96 130.24 138.48 0.08 17.27 – 15.98 2.50) 1.130.406.657.90 1.76 23.13 1.74 1.84 1.406.14 0. 2012 (i) Primary segment information: Business segment: 2011-12 Paints REVENUE External Sales (Net) Inter-Segment Sales Other income Total Revenue RESULT Segment result Unallocated expenses Operating Profit Finance costs Interest income Dividends Profit on sale of short-term investments Profit on sale of long-term investments Profit on sale of fixed assets Miscellaneous income Tax expenses Profit after tax oThER INFoRMATIoN Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilites Capital expenditure Unallocated capital expenditure Total Depreciation/Impairment Unallocated Depreciation/Impairment Total 117.87 1.232.21 2.722.531.284.12 3.97) 6.303.524.26 121.69 1.791.89 32.68 18.60 (118.83 112.18 (23.849.26 1.020.58 1.78 9.06 80. 114 .632.21) 10.84 4.18 739.43 4.92 3.105.28 9.51 Others* Total Paints 2010-11 Others* Total (` in Crores) * Others include Company’s business units manufacturing Phthalic Anhydride and Pentaerythritol.896.18 4.90 4.06 26.706.02 17.70 84.02 110.45 7.12 3.42) 1.47 0.08 5.147.67 (378.45 41.84 32.45 2.514.79 982.610.01 673.02 1.39) 881.642.08 2.70 1.20 7.99 113.35 9.20) 1.28 7.58 1.49 35.18 2.69 2.Notes to Consolidated Financial Statements NoTE 35: Segment Information for the year ended 31st March.50 257.479.131.42 118.23 7.13 109.07 (433.423.

32815 For and on behalf of the Board Ashwin Choksi Chairman K.593.61 740.813.57 3.28 5.74 (` in Crores) NoTE 36: The previous year’s figures have been re-grouped / re-classified to conform to this year’s classification which is as per Revised Schedule VI. Signatures to Notes to Consolidated Financial Statements As per our report of even date For Shah & Co.06 457.62 29.67 5. S.155.896. This adoption does not impact recognition and measurement principles followed for preparation of financial statements as at 31st March.53 2010-11 International Operations 1.035.52 59. B.Asian Paints Limited Annual Report 2011-2012 Notes to Consolidated Financial Statements (ii) Secondary segment information: Geographical Segment: 2011-12 Domestic Operations Segment revenue Carrying cost of segment assets Additions to fixed and intangible assets 8.849.959.195.94 651. Anand Managing Director & CEO Tarjani Vakil Chairperson of Audit Committee Jayesh Merchant Chief Financial Officer & Company Secretary 115 .51 Total 9.610.21 Total 7. 2011.789.21 99.35 Domestic Operations 6. 2012 For B S R & Associates Chartered Accountants FRN: 116231W Natrajh Ramakrishna Partner Membership No.58 516. Chartered Accountants FRN: 109430W Ashish Shah Partner Membership No.51 4.59 69. 103750 Mumbai 8th May.84 International Operations 1.

40 Asian Paints (Middle East) LLC OMR 132.58 3.58 40.57 3.02 4.20 13.63 0.21 Apr 10 to Mar 11 0.34) 58.67 5.94 0.08) 0.03 4.49 23.64 46.21 10.07 34.79 Lewis Berger (Overseas Holdings) Ltd GBP 81.56 2.46 3.31) 1.64 42.03) 1.37 43.26 24.95 2.41 0.01 1.22 0.98) (0.76 (0.54 3.05 43.89) (0.92 11.35 168.38 6.05 0.97) (0.88 52.08) 0.22 18.69 17.57 33.06 (13.80) (0. 1956 Subsidiary Name Currency Exchange Rate Current Previous Period Period AP Coatings Ltd ` 1.04 0.15 52.79 Note .51 27.05 (8.16 67.66 Apr 10 to Mar 11 0.06 (0.18 0.00 47.39 64.79 Samoa Paints Ltd WST $ 22.01 2.03 0.12) (0.21 2.26 70.89 20.06 15.98 4.72 25. EGP 8.32 16.48 69.88 45.63 2.01 5.28 18.45 Apr 10 to Mar 11 8.00 1.19) (0.01 SUMMARY OF FINANCIAL STATEMENTS OF SUBSIDIARY COMPANIES PURSUANT TO SECTION 212 (8) OF THE COMPANIES ACT.08 (13.21 Apr 10 to Mar 11 0.50 22.11 Berger Paints Emirates Ltd AED 13.87 52.21 (0.66 3.01) 1.10 4.75 25.45 7.03) 1.44 40.09 (0.116 All figures except exchange rates in ` Crores Accounting Period Capital Reserves Total Liabilities Total Assets Investment (other than in subsidiaries) Turnover PBT Tax provision PAT Dividends Proposed/Paid Current Period Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 15th Mar 11 to 13th Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 11 to Mar 12 Apr 10 to Mar 11 Apr 10 to Mar 11 3.16 Apr 10 to Mar 11 0.32 2.18 6.20 0.83 0.L.04 0.00 1.03.2012 for current period and 31.50 Asian Paints Industrial Coatings Ltd ` 1.78 6.89 1.20 Berger Contractor (Singapore) Pte Ltd SG$ - 35.37 31.39 13.42 1.36 10.47 (0.44 20.04) Apr 10 to Mar 11 0.29 293.70 (1.51 51.32 Apr 10 to Mar 11 1.58 5.90 3.45 3.74 0.02 0.71 6.64 Taubmans Paints Fiji Ltd Fiji $ - 25.10 3.39 1.55 0.22 24.32) (1.84 3.65 29.78 72.79 24.81) (0.45 3.54 4.58 15.26 (1.07) 4.48 35.64 Asian Paints (S.14 5.35 14.96 28.08 4.26 40.04 0.Indian rupees equivalent of the figures given in foreign currency translated at the exchange rate as at 31.00) Apr 10 to Mar 11 24.35 3.66 0.17 Apr 10 to Mar 11 1.41 3.79 0.43 58.14 64.83 4.74 39.47 11.93 1.49 71.88 36.65 0.84 80.63) (0.71 7.01 8.00 Nirvana Investments Ltd GBP 81.21 1.00 Asian Paints Lanka Ltd SL Rs 0.62 15.01) 84.65) (0.37 1.61 120.41 144.) Ltd SI $ 7.26) 0.13 13.49 0.05 4.90 5.34 1.63 0.36 72.42) (3.67 73.69 25.22 Apr 10 to Mar 11 15.44 1.22 5.05 (0.16 14.07 2.70 14.01 141.78 4.84 48.62 Apr 10 to Mar 11 58.44 14.47 0.18) (0.76 126.05 0.05 0.21 (193.82 1.58 45.79) (15.49 5.48 47.34 17.17) (0.11 2.98 97.54) (0.16 134.37 3.66 19.63 0.08 5.48 35.89 2.36 72.54 Berger Paints Singapore Pte Ltd SG$ 40.08) (11.63 5.83 91.34 14th Mar 10 to 14th Mar 11 1.L.40 7.02 112.08 Apr 10 to Mar 11 4.06 4.63 0.03 2.05 3.40 0.09 0.32 6.06 49.39 1.65 SCIB Chemicals S.60) 0.09 115.52 2.56 0.03.45 10.11 37.27 6.01 0.31 Asian Paints (South Pacific) Fiji Ltd Fiji $ 28.07 3.96 36.45 30.98 Berger Paints Bahrain W.19 (16.20) 18.49 Apr 10 to Mar 11 15.38 19.95 20.51) 16.52 40.61 4.20) (0.48 32.40 3.03 92.24 50.89 4.79 14.90 0.39 7.27 22.09 46.53 27.26 159.46) (1.04 (1.78 4.23 14.65 Apr 10 to Mar 11 4.02 Apr 10 to Mar 11 16.94 31.54 40.23 (0.24 Enterprise Paints Ltd GBP 81.49 3.18 1.41 Asian Paints (Vanuatu) Ltd Vatu 0.19) (1.52 45.08 3.00 Multifacet Infrastructure (India) Ltd ` 1.48 4.76 132.29 4.77 7.E.64 180.01 14.19 213.57 0.64 Asian Paints (International) Ltd US $ 50.20 1.A.73 0.44 33.09 (3.53 44.74 (8.72 4.33) (0.69) (0.76 1.61 16.04 0.18 6.24 17.09 Universal Paints Ltd GBP 81.01 (0.02) 40.82) (0.19 4.01) Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous Previous Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (8.31) 2.36 16.27 1.53 118.59) 23.59) 179.74 27.83 3.81 4.02 Apr 10 to Mar 11 30.98 Berger International Ltd SG$ 40.05 222.12 (2.53 6.00 1.96 46.40 0.60) (4.07 0.96) 0.58 2.10 10.09 5.00 1.75) Nov 10 to Mar 11 65.54 53.80 7.40 8.37 29.03) 1.17 (0.15 63.38 48.02) (30.53 0.60) 0.72 142.94 (1.22 6.68) Apr 10 to Mar 11 126.37 0.24) (11.13 21.05 0.06 1.80 10.30 (0.86 15.60 0.63 0.12 (0.00 23.79 74.41 Berger Building Services (Singapore) Pte Ltd SG$ 40.00 Asian Paints (Bangladesh) Ltd Taka 0.14 (3.58 3.36 72.25 0.24 Asian Paints (Nepal) Pvt Ltd Nepal Rs 0.76 91.30 0.76 Berger Paints Barbados Ltd Barbados $ 26.42) (0.34 Apr 10 to Mar 11 148.80 7.99 115.10 7.I.95 3.09) 1.13 3.93) (175.24 2.23 2.32 (35.32 0.24 7.04 0.69 19.97 11.20 60.94 73.48 21.19 30.2011 for previous period .56) 35.25 12.07 0.04 1.39) (1.02 18.21 13.61 6.79 Maxbhumi Developers Limited ` 1.82 1.82 27.61) (2.47 0.00 1.05 24.16 Apr 10 to Mar 11 1.56 0.03) (0.37 34.76 49.69 9.88 2.63 6.51 1.20 1.08) 2.34 15.87 64.89 4.00 0.82 Apr 10 to Mar 11 5.48 (0.82) 17.54 1.01 Apr 10 to Mar 11 31.17 0.60 (4.04 5.48 1.55 0.98 Berger Paints Trinidad Ltd Trinidad $ 8.11 (1.37 0.05) (3.43 43.02) Apr 10 to Mar 11 8.53 1.54 2.36 72.75 Apr 10 to Mar 11 1.75 0.47 10.99 (1.05 (0.73 120.10) 0.26 11.93 25.35 2.27 6.93 0.05) (0.12 Apr 10 to Mar 11 1.19) Apr 10 to Mar 11 4.37 1. BHD 135.76 0.18 0.72 0.86 9.75) 2.36 Berger Paints Jamaica Ltd Jamaican $ 0.72 18.56 14.13 5.36 0.20) (0.09 Asian Paints (Tonga) Ltd $ Top 30.31 0.33 (14.92 59.85 12.29 (0.45 7.03 0.21 1.91 355.

REPORT ON CORPORATE GOVERNANCE & GENERAL SHAREHOLDER INFORMATION AGM NOTICE

Report on Corporate Governance
Company’s philosophy on Corporate Governance: Fairness, accountability, disclosures and transparency form the four pillars of your Company’s philosophy of Corporate Governance. Your Company strongly believes that for attaining sustainable growth in this competitive corporate world, Corporate Governance is a pre-requisite. The governance practices followed by your Company have played a vital role in its journey of continued success. Our endeavour over the years has been to strengthen the governance processes and systems attributing to constant improvisations, sustainability, profitable growth and creating long-term value for the stakeholders. All the procedures, policies and practices followed by your Company are based on sound governance principles. Comprehensive disclosures, structured accountability in exercise of powers, adhering to international standards and commitment in compliance with regulations and statutes in letter as well as spirit have enabled your Company to enhance shareholder value. In fact, this has become an integral part of the way business is done. The governance practices followed by your Company are continuously reviewed and the same are benchmarked to the best governed companies. Your Company has complied with all the regulations stipulated by the Securities Exchange Board of India (SEBI) in the Listing Agreement. This chapter, along with chapters on Management Discussion and Analysis and General Shareholder Information, constitutes Asian Paints’ compliance with Clause 49 of the Listing Agreement. Your Company’s policies and practices cover most of the elements of the National Voluntary Guidelines on Social, Environmental and Economical Responsibilities of Business issued by the Ministry of Corporate Affairs in July, 2011. Board of Directors: Composition: As on date, the Board of Directors of your Company comprises of fourteen (14) Directors of which six (6) are Non-Executive Directors, seven (7) are Non-Executive/Independent Directors and one is Managing Director & CEO of the Company. The composition of the Board is in conformity with Clause 49 of the Listing Agreement. The term of Mr. P. M. Murty as the Managing Director & CEO expired on 31st March, 2012 and consequently he ceased to be a Director on the Board of your Company. The Board of Directors at their meeting held on 29th March, 2012, appointed Mr. K. B. S. Anand as an Additional Director and Managing Director & CEO of your Company with effect from 1st April, 2012. The details of the Directors being re-appointed on retirement by rotation at the ensuing Annual General Meeting, as required pursuant to Clause 49(IV)(G) of the Listing Agreement, are mentioned in the Notice to the Annual General Meeting, forming part of the Report. Number of Board Meetings: During the financial year ended 31st March, 2012, ten (10) meetings of the Board of Directors were held and the maximum time gap between two (2) meetings did not exceed four (4) months. The dates on which the Board Meetings were held were as follows: Date(s) on which meeting(s) were held 10th May, 2011 26th July, 2011 31st August, 2011 21st September, 2011 21st October, 2011 7th November, 2011 21st January, 2012 17th February, 2012 20th March, 2012 29th March, 2012

The Board meets atleast once in a quarter to review the quarterly financial results and operations of the Company. In addition to the above, the Board also meets as and when necessary to address specific issues relating to the business. The tentative annual calendar of Board Meetings for approving the accounts for the ensuing year is decided well in advance by the Board and is published as part of the Annual Report. All the Directors have informed your Company periodically about their Directorship and Membership on the Board Committees of other companies. As per disclosure received from Director(s), none of the Directors holds Membership in more than ten (10) Committees and Chairmanship in more than five (5) Committees. The details of the composition, nature of Directorship, the number of meetings attended and the directorships in other companies of the Directors of the Company are detailed below. This table also signifies the relationship of the Directors with each other as required to be disclosed in terms of Clause 49 of the Listing Agreement:

118

Asian Paints Limited Annual Report 2011-2012

Name of the Director

Nature of Directorship

Relationship with each other

Attendance

Directorship in other Companies (*)

Non-Executive Chairman/ Promoter Ashwin Dani Non-Executive Vice Chairman/ Promoter Abhay Vakil Non-Executive Director/ Promoter P. M. Murty # Managing Director & CEO K. B. S. Anand @ Managing Director & CEO Mahendra Choksi Non-Executive/ Promoter Amar Vakil Non-Executive/ Promoter Mrs. Ina Dani Non-Executive/ Promoter Ms. Tarjani Vakil Non-Executive/ Independent Dipankar Basu Non-Executive/ Independent Deepak Satwalekar Non-Executive/ Independent R. A. Shah Non-Executive/ Independent S. Sivaram Non-Executive/ Independent Mahendra Shah Non-Executive/ Independent S. Ramadorai Non-Executive/ Independent Notes: # @ * **

Ashwin Choksi

Brother of Mahendra Choksi Husband of Ina Dani Brother of Amar Vakil Not related to any of the Directors Not related to any of the Directors Brother of Ashwin Choksi Brother of Abhay Vakil Wife of Ashwin Dani *** *** *** *** *** *** ***

At the Board Meetings 10

At the last AGM Yes -

Membership and Chairmanship of the Committees of the Board of other Companies (**) Committee Committee Member Chairman -

10

Yes

7

3

2

9

Yes

3

1

1

10 NA 10 8 10 8 10 8 9 7 10 3

Yes NA Yes No Yes Yes Yes Yes No Yes No No

NA 2 2 3 5 8 5 13 2 3 14

NA 4 4 4 9 1 9

NA 2 2 3 4 4

The term of Mr. P. M. Murty as Managing Director & CEO of the Company expired on 31st March, 2012 and consequently he ceased to be a Director on the Board of your Company. Mr. K. B. S. Anand was appointed as an Additional Director and Managing Director & CEO of the Company with effect from 1st April, 2012. Excludes directorship in Asian Paints Limited. Also excludes directorship in Private Limited Companies, Foreign Companies and Alternate Directorships. For the purpose of considering the limit of the Committee Memberships and Chairmanships of a Director, the Audit Committee and the Shareholders/ Investors Grievance Committee of Public Limited Companies have been considered. There is no relationship between any of the Independent Directors.

***

119

Transactions that involve substantial payment towards goodwill. of these Committees are provided hereunder: AUDIT CoMMITTEE: Composition and terms of reference The Audit Committee comprises of three (3) Independent Directors. etc. Any issue which involves possible public or product liability claims of a substantial nature. terms of reference. Proposals for investments. divestments. mergers and acquisitions. brand equity or intellectual property. prosecution and penalty notices. in consultation with the Chairman. loans. Mahendra Shah and Mr. subsidiaries and assets. where they have personal interest. there are four (4) Committees of the Board.Board Procedures: The Board Meetings are governed by structured Agenda. Approval of related party transactions. Minutes of the meetings of the Board of Directors of subsidiary companies including international subsidiaries. half yearly and annual results of the Company and its operating divisions or business segments along with the consolidated results of the group. Status on legal cases. Investment of funds of the Company. Materially important show cause. Quarterly. number of meetings and related attendance. Fatal or serious accidents or dangerous occurrences. Information on recruitment of senior officers just below the Board level. The proceedings of the meetings of the Board and its Committees are recorded in the form of minutes and the draft minutes are circulated to the Board for perusal. guarantees. Mr. The members of the Audit Committee are Ms. The information as specified in Annexure IA to the Clause 49 of the Listing Agreement is regularly made available to the Board. Significant labour problems and their proposed solutions.. which are not in the normal course of business. The important decisions taken at the Board/Committee meetings are communicated to the concerned departments/ divisions promptly. all of whom possess financial and accounting expertise/ exposure. 120 . cash flows and budgets and capital budgets. The Board members may bring up any matter for consideration of the Board. Dipankar Basu. The Board has complete access to any information within the Company which includes following information as specified in Annexure IA to the Clause 49 of the Listing Agreement: • • • • • • • • • • • • • • • • • • • • • • • • Annual budgets. Committees of the Board: Currently. Quarterly details of foreign exchange exposure and the steps taken by management to limit the risks of adverse exchange rate movement. Any materially significant effluent or pollution problems. Tarjani Vakil (Chairperson). Details of any joint venture or collaboration agreement. Sale of a material nature of investments. operating plans. Compliance reports of laws applicable to the Company. Risk management reports and presentations made by the senior management. Presentations are made by the Managing Director & CEO and Business Heads on the Company’s operations and other matters on a periodic basis. demand. and All other information which is relevant for decision making by the Board. Remuneration Committee. Minutes of meetings of the Audit Committee and other committee(s) of the Board. The Board decides the terms of reference for these Committees. Shareholders/ Investors Grievance Committee and Share Transfer Committee. Disclosures made by the senior management personnel as to all material financial and commercial transactions. Significant initiatives and developments on the human resource and industrial relations fronts. The minutes of the meetings of the Committees are placed before the Board for information. Any materially relevant defaults in financial obligations to and by the Company or substantial non-payment for goods sold by the Company. The details as to the composition. namely: Audit Committee. The Agenda along with comprehensive notes and background material are circulated well in advance before each meeting to all the Directors for facilitating effective discussion and decision making.

15. Looking into reasons for substantial defaults in payment to the depositors. Any other matter referred to by the Board of Directors. Discussion with the internal auditors on any significant findings and follow up thereon. 2011 Name Tarjani Vakil (Chairperson) Mahendra Shah Dipankar Basu The role of the Audit Committee inter alia includes the following: 1. 9. The details as to the date(s) on which the meetings were held and attendance of the Committee members during the financial year ended 31st March. the replacement or removal of the statutory auditor. the appointment of Cost Auditor for the Company. e. sufficient and credible. Compliance with listing and other legal requirements relating to financial statements. 16. with the management. the annual financial statements before submission to the Board for approval. Overseeing the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statements are accurate. 13. and Qualifications in the draft audit report. Disclosure of any related party transactions. if required. Reviewing the appointment of the General Manager Audit and Risk of the Company. the financial statements and investments made by the unlisted subsidiary companies. Reviewing reports furnished by the internal auditors and statutory auditors and ensuring suitable follow up thereon. 2011 20th January.Asian Paints Limited Annual Report 2011-2012 The scope of activities and terms of reference of the Audit Committee is as set out in Clause 49 of the Listing Agreement read with Section 292A of the Companies Act. 8. with particular reference to: a. 12. Changes in the Accounting policies and practices and the reasons for the same. Reviewing with the Management and the Statutory Auditors anticipated changes in the Accounting Standards. 10. 2012 Meeting details held Attended 5 6 5 Reviewing with management quarterly. Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s report as per Section 217(2AA) of the Companies Act. 121 . Recommending to the Board. d. debenture holders. if any. Reviewing the internal investigations by the internal auditors into matters where there is a suspected fraud or irregularity or failure of internal control systems of a material nature and reporting the matter to the Board. Reviewing the Company’s financial and risk management policies. 14. half yearly. about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern. major accounting entries and significant adjustments made in the financial statements arising out of audit findings. b. and 17. 7. Reviewing the statements of significant related party transactions. 5. 1956. 6 6 6 20th October. c. if any. fixing of audit fees and approving payments for any other service. Reviewing. 2. 2012 are as follows: Date(s) on which the meeting(s) were held 9th May. 2011 25th July. 4. Reviewing the Management Discussion and Analysis of the financial condition and results of operations. nine-months and annual financial statements. 11. 3. re-appointment and. shareholders and creditors. standalone as well as consolidated before submission to the Board for approval. 2011 29th August. the appointment. Discussion with the statutory auditors before the audit commences. 1956. Reviewing with the management performance of statutory and internal auditors. Recommending to the Board of Directors. 6. 2012 26th March.

The remuneration payable to him has been approved by the Remuneration Committee of the Board of Directors of the Company. The annual variable pay of senior managers is linked to the Company’s performance in general and the performance of their functions/business units for the relevant year is measured against specific major performance areas which are closely aligned to the Company’s objectives.. 2011 26th July. the size of the Company and scope of its operations as well as taking into account external benchmarks. Jayesh Merchant. other benefits. 2012 are as follows: Date(s) on which the meeting(s) were held 5th May. Murty ceased to be the Managing Director & CEO of the Company on 31st March. REMUNERATIoN CoMMITTEE: Composition and terms of reference: The Remuneration Committee comprises of three (3) Independent Directors. appointment and remuneration of relatives of Directors for holding an office of profit pursuant to Section 314 of the Companies Act. B. K. No severance fee is payable to him on his termination of employment. K. K.Internal Audit & Risk to attend the meetings of the Audit Committee. Anand. Asian Paints’ Board consists of only one Executive Director namely Mr. commission. operational. S. 2012 after Mr. S. General Manager – Accounts and Taxation. subject to the approval of the shareholders at the ensuing Annual General Meeting. B. M. 2011 23rd March. P. commission. 2012. 2012 Name Dipankar Basu (Chairman) Tarjani Vakil Deepak Satwalekar Remuneration Policy: The Company’s remuneration policy is based on the fundamental rule of rewarding performances as against earmarked objectives. 2009. B. compliance. S. Murty is reviewed by the Remuneration Committee. IT applications. 2015 as approved by the Board of Directors at its meeting held on 29th March. For the financial year 2011-12. M. etc. The Company has an internal audit team. Chief Financial Officer and Company Secretary. The remuneration payable to him is commensurate with the responsibility conferred upon him by the Board. From time to time.The Audit Committee invites the Managing Director & CEO. 2012 and as Managing Director & CEO of the Company from 1st April. 122 . P. who reports to the Managing Director & CEO and the Audit Committee. reviews the adequacy of internal audit function and the internal audit reports including those related to internal control weaknesses. Managing Director & CEO. The Committee’s terms of reference includes reviewing and recommending to the Board – the salary. Anand. inter alia. fairness and consistency in rewarding the employees. 2012 and recommended to the Board. a Mechanical Engineer with Post Graduation in Management from IIM Calcutta and a veteran with 33 years of experience with the Company. etc. The remuneration payable to 3 3 3 Meeting details held Attended 3 3 3 Mr. Mr. Anand has taken over the day to day affairs of the Company from 1st April. The details of the dates on which the meetings were held and the attendance of the Committee members during the financial year ended 31st March. The remuneration structure comprises of salary. Details of remuneration paid to the Directors of the Company are as follows: Managing Director: Currently. Statutory Auditor(s) and General Manager . M. 2012. service agreements and employment conditions of the Whole-time and the Managing Director and to approve the selection. 2012 to 31st March. the Company’s systems of internal controls covering financial. Chief Financial Officer and Company Secretary acts as the Secretary to the Committee.Internal Audit & Risk. house rent allowance. at its meeting held on 23rd March. The remuneration payable to Mr. Murty is in accordance with the terms and conditions mentioned in the contract and as approved by the shareholders at the Annual General Meeting held on 26th June. P. Mr. perquisites. The policy aims at attracting and retaining high caliber talent and ensures equity. has been appointed as an Additional Director with effect from 1st April. comprising of Independent Directors. are reviewed by the Internal Audit Department and presentations are made to the Audit Committee on the findings of such reviews. The Chief Financial Officer and Company Secretary acts as Secretary to the Committee. superannuation. the remuneration payable to Mr. 1956. The Audit Committee. headed by the General Manager .

The term of Mr. his contribution and industry standards. 123 .000 (Rupees Fifteen Thousand Only) per meeting to the Non-Executive Directors for attending the meetings of the Board and Committees (except Share Transfer Committee Meeting).000 3. Perquisites in case of Mr.20.36. subject to a limit not exceeding 1% p. M.000 7. 1956).000 14. P.000 87. Ramadorai Notes: * Perquisites for Mr.00. thus.000 14. Murty as the Managing Director & CEO of the Company expired on 31st March.000 23.000 15. M...50.20.00. their active involvement and engagement with the Company’s business as well as independent views ensure the highest level of governance.000 19. The commission payable to Non-Executive Directors is distributed broadly on the basis of their attendance and contributions at the Board and the Committee meetings. and Chairmanship of Committees of the Board.000 18. Apart from the aforesaid related party transactions.58.000 15.80.630 15.35. Ashwin Dani and Mr.000 45.45.000 hRA 42.00. Murty’s contract with the Company.Asian Paints Limited Annual Report 2011-2012 Mr.000 3.000 1..65.000 14.50. Non-Executive Directors: The Non-Executive Directors play a pivotal role in safeguarding the interests of the investors at large by playing an appropriate control role.35.000 18.a. of the Company.000 2. The Company pays sitting fees of ` 15.29.000 14.000 14. special allowance etc.40.000 20.00. Crawford Bayley & Co.00.000 14. Ashwin Choksi.000 1.85.35.65. Solicitors & Advocates.630 Sitting Fees Commission 1. 2009.00.00. which renders professional services to the Company. pecuniary or business relationship with the Company: Notes to the Financial Statements furnishes the transactions with related parties.000 21.80.40. Murty include Company’s contribution to provident fund. P.00. Disclosures to this effect have also been received from the Directors and the Senior Managerial Personnel of the Company. Abhay Vakil. medical and leave travel allowance. The Non-Executive Directors bring in their invaluable experience and expertise which help deliberations at Asian Paints’ Board. Their contribution to the Board processes and valuable strategic insights from time to time. M. P.000 # The Company has not granted any Stock Options to any of its Directors.15.000 16.000 4. There is no pecuniary or business relationship between the Non-Executive Directors and the Company. there are no transactions of material nature with the Directors or their relatives.00. A. Murty # Mahendra Choksi Amar Vakil Ina Dani Tarjani Vakil Dipankar Basu Deepak Satwalekar R.45.85.96. Mr..80. as well as monetary value of perquisites as per Income Tax rules in accordance with Mr.000 16.000 15. M/s.00.000 1. Murty is based on the performance of the Company.000 2.00.00.000 4.000 19. is an insignificant portion of their total revenue.15.45.60.50. The commission is paid as per limits approved by the shareholders.35.000 22.05.00. Crawford Bayley & Co.000 3. Shah S.000 1.15. A. M. P.000 1. M. etc. Shah.000 16.000 15.000 4. The quantum of fees paid to M/s. except for the commission payable to them annually.05.000 Total 28.00.000 14. 2012 and consequently he ceased to be a Director on the Board of your Company..80.000 1. which may have a potential conflict with the interest of the Company. Details about Remuneration paid to the Directors in 2011-12 are as follows: (Figures in `) Name of the Director Ashwin Choksi Ashwin Dani Abhay Vakil P.00. is a senior partner of M/s. is not to be construed to have any material association with the Company. Non-Executive Directors include retiral benefits like pension and medical reimbursement as per their contracts entered with the Company in their erstwhile capacity as Executive Directors which ended on 31st March. Mr.000 7. Directors with materially significant. of the profits of the Company (computed in accordance with Section 309(5) of the Companies Act. No severance fee has been paid on termination of employment. Salary 1. Independent Director of the Company. Sivaram Mahendra Shah S. as stipulated under Accounting Standard 18 (AS-18).000 Perquisites* 7. The Non-Executive Directors are paid remuneration by way of commission and sitting fees. Crawford Bayley & Co.000 1.45.20. R.

The appointment and the terms and conditions including remuneration of Mr. and Mr. during the FY 2011-12. Sivaram Mahendra Shah S. Jalaj Dani.53. issued Director’s Relatives (Office or Place of Profit) Rules. Manish Choksi. Director and nephew of Mr. Ramadorai Total * Nature of Directorship Non-Executive/Promoter Non-Executive/Promoter Non-Executive/Promoter Non-Executive/Promoter Non-Executive/Promoter Non-Executive/Promoter Non-Executive/Independent Non-Executive/Independent Non-Executive/Independent Non-Executive/Independent Non-Executive/Independent Non-Executive/Independent Non-Executive/Independent No of shares held* 78. Mr. M.809 Nil Nil Nil 47. P. to ` 2.Employees holding an office or place of profit in the Company pursuant to Section 314 of the Companies Act. Director. 2011.877 equity shares of the Company as on 31st March. Murty held 2. Mahendra Choksi. 1956.40.444 Percentage to the paid up capital 0. ShAREhoLDERS / INVESToRS GRIEVANCE CoMMITTEE: The Board of Directors of the Company has constituted the Shareholders/ Investors Grievance Committee which is chaired by a Non-Executive Director/ Independent Director to specifically look into the redressal of shareholders queries and complaints. Shah S.05 Nil Nil Nil 0. P.68. Anand. K. Mr.20. 124 .08 0. The shareholding of the Non-Executive/ Independent Directors of the Company as on 31st March. Manish Choksi. Mr. 2012.23 1.000 per month from ` 50.618 13. Mahendra Choksi.570 2.45. Mr. Ashwin Dani. Murty as the Managing Director & CEO on 31st March. 2011. The Ministry of Corporate Affairs by a notification dated 2nd May.81. Jigish Choksi son of Mr.09.97 0. The appointment of Mr. Director and nephew of Mr. who are relatives of the Directors: Mr.22 2. 2012.592 Nil Nil Nil 1. A. P.76. S.207 (Rupees Seven Lacs Twenty Thousand Two Hundred and Seven only). Chairman and Mr. Ina Dani. B.98 As per the declarations made to the Company by the Directors as to the shares held in their own name or held jointly as the first holder or held on beneficial basis as the first holder. Amar Vakil.00 Nil Nil Nil 4. 2012 is as follows: Name of the Director Ashwin Choksi Ashwin Dani Abhay Vakil Mahendra Choksi Amar Vakil Ina Dani Tarjani Vakil Dipankar Basu Deepak Satwalekar R. Varun Vakil have been approved by the shareholders and the Central Government/Ministry of Corporate Affairs.628 (Rupees One Crore Fifty Three Lacs Forty Thousand Six Hundred and Twenty Eight only) during the FY 2011-12. had drawn a gross remuneration of ` 1. During the financial year 2011-12. had earned gross remuneration of ` 1. Managing Director & CEO holds 27 equity shares of the Company. The revised rules increased the remuneration payable to the employees holding office or place of profit in the Company in accordance with Section 314 of the Companies Act. Jigish Choksi and the terms and conditions including remuneration was approved by the shareholders at the Annual General Meeting held on 16th July. 2011 and 20th March. Ashwin Choksi. 2012. Vice Chairman and Mrs. Murty with effect from 1st April. during the FY 2011-12. Chairman. Jalaj Dani.617 51. Mr. President – International Business Unit.329 (Rupees Fourteen Lacs Six Thousand Three Hundred and Twenty Nine only).19. Manager – Market Development. M.06. Mr. Ashwin Choksi. son of Mr. M.43 0. The Shareholders/ Investors Grievance Committee was reconstituted due to expiry of term of Mr.207 28. S. the Committee met twice on 7th November. Director had drawn a gross remuneration of ` 14. Varun Vakil. son of Mr.50. 1956 and rules thereunder. son of Mr.031 2. B. Abhay Vakil. 2012. Chief – Corporate Strategy and CIO.516 (Rupees One Crore Sixty Eight Lacs Eighty One Thousand Five Hundred and Sixteen only) during the FY 2011-12. Mr.70. 2010. Director) holds the position of Marketing Executive and had drawn a gross remuneration of ` 7. consequently as a member of the Committee.000 per month. K. Shailesh Choksi (brother of Mr. Anand has been inducted as a member of the Committee in place of Mr.

3. 2 2 2 2 2 Meeting details held during the year Attended 2 2 2 2 2 Mr. To effect transmission or deletion of shares. Abhay Vakil (Chairman). 5. handled by the Company in co-ordination with Sharepro Services (India) Private Limited. date(s) on which the meetings were held and the attendance of the members of the Committee during the financial year ended 31st March. 4. Mr.. for transfers. were duly addressed and no queries were pending for resolution on that date except where they were constrained by dispute or legal impediments or due to incomplete or non submission of documents by the shareholders. transmissions. the Company’s Registrar and Transfer Agent. Ashwin Dani and the Chief Financial Officer and Company Secretary. Murty Mahendra Choksi Ina Dani The terms of reference of the Committee include the following: 1. 2012. 3. 125 .Asian Paints Limited Annual Report 2011-2012 The details as to the composition of the Shareholders/ Investors Grievance Committee. To effect transfer of shares. The Share Transfer Committee has been delegated powers to administer the following: 1. Chief Financial Officer and Company Secretary is the Compliance Officer for complying with the requirements of the Securities Law and the Listing Agreement. Mr. To oversee the performance of the Registrar and Transfer Agent of the Company. the members of the Share Transfer Committee were three (3) Non-Executive Directors. and To recommend measures for overall improvement in the quality of services to the investors. Mr. It is constituted to monitor. Certain Court cases are pending in the Courts/ Consumer Forums. appropriately and there were no pending complaints at the end of the financial year 2011-12. All the queries and complaints received during the financial year ended 31st March. 6. To approve the register of members as on the record date(s) and/ or book closure dates for receiving dividends and other corporate benefits. To specifically look into queries and complaints received from the shareholders of the Company. deletion. 2012 are as follows: Name Mahendra Shah (Chairman) Abhay Vakil P. issue of certificates on receipt of requests for consolidation or split of share certificates. To review correspondence with the shareholders and take appropriate decisions in that regard. M. etc. relating to disputes over the titles to the shares of the Company in which either the Company has been made a party or necessary intimation thereof has been received by the Company. and To redress complaints received from the shareholders from time to time. Ashwin Choksi. Sharepro Services (India) Private Limited. supervise and approve the requests received from the shareholders of the Company and others. Jayesh Merchant. 2. Details pertaining to the number of complaints received and responded and the status thereof during the financial year ended 31st March. ShARE TRANSFER CoMMITTEE: During the financial year 2011-12. 2. To issue duplicate share certificates. 2012 are given as follows: Nature of Complaints Non-receipt of Share Certificate(s) lodged for transfer Non-receipt of Dividend warrants Non-receipt of Share Certificate(s) lodged for with a request for splitting the share certificates/ for non-receipt of Bonus share certificates Letters received from Stock Exchange(s) Others/ Miscellaneous Total Received during the year 2 2 6 2 3 15 All the aforesaid complaints were responded to by the Company/ Registrar and Transfer Agent.

Mumbai 400 020 26th June. Also. 1956. New Marine Lines.m. Disclosure of Accounting Treatment: Your Company follows Accounting Standards prescribed by the Companies Accounting Standard Rules. Ms.400 020 2009-2010 Yashwantrao Chavan Pratisthan Auditorium.m. of the Company and its subsidiaries in the immediately preceding accounting year.00 p. with the Promoters. K. 2012. as may be applicable from time to time. CEO/ CFO Certification: As required by Clause 49(V) of the Listing Agreement. 2011. the Company has not adopted a treatment different from that prescribed in the Accounting Standards. their subsidiaries or relatives etc. whose turnover or net worth exceeds 20% of the consolidated turnover or networth respectively. B. Nathibai Thackersey Road. Y. Mr.The Committee.00 p. No. All the committee members were present at the meetings. General Jagannath Bhosle Marg. Mr. 2010 Time 3. Murty to the Board. Murty. the Committee was disbanded with effect from 21st October. Anand. Chavan Centre. in accordance with Clause 49 (IV) (G). 2006 and relevant provisions of the Companies Act. 2009 3. 126 . Jayesh Merchant. AD hoC CoMMITTEE: As mentioned in the Annual Report for the year 2010-11. P. M. P. B. copies of the minutes of the subsidiary companies of the Company are placed before the Board of the Company on a periodical basis. 3. Mahendra Shah to recommend to the Board a successor to Mr. 3. Deepak Satwalekar (Chairman). Managing Director & CEO and Mr. Anand as a successor to Mr. attends to the share transfer and other formalities once in a fortnight and has met twenty eight (28) times during the FY 2011-12. in terms of Clause 49 (III) of the Listing Agreement. Details of non-compliance(s) by the Company: Your Company has complied with all the requirements of the Stock Exchange(s) and the Securities Exchange Board of India on matters related to Capital Markets or any other matter. Mumbai 400 021 2008-2009 Patkar Hall. New Marine Lines. 2011 16th July. Managing Director & CEO whose tenure ended on 31st March. Disclosures: 1. There were no penalties imposed or strictures passed against the Company by the statutory authorities in this regard. Nathibai Thackersey Road. S. 2.m. Chief Financial Officer & Company Secretary was placed before the Board of Directors at their meeting held on 8th May. All transactions were carried out on an arms-length basis and were not prejudicial to the interest of the Company. S. K. 1 All special resolutions set out in the notices for the Annual General Meetings were passed by the shareholders at the respective meetings with requisite majority. M. The Audit Committee reviews the financial statements including investments by the unlisted subsidiary companies of the Company. In preparation of financial statements.00 p. of special resolutions set out at the AGM Nil 2 2010-2011 Patkar Hall. Dipankar Basu. Directors or the Management. Tarjani Vakil and Mr. B. the Board had constituted an Ad hoc Committee comprising of four (4) Independent Directors. General Body Meetings: The venue and the time of the last three Annual General Meetings of the Company are as follows: Year Location Meeting Date 24th June. the CEO/ CFO Certificate for the FY 2011-12 signed by Mr. Mumbai . The Committee met five (5) times during the FY 2011-12. and recommended the appointment of Mr. 2012. Next to Sachivalaya Gymkhana. On serving the terms of reference. Subsidiary Companies: Your Company does not have a material non-listed Indian subsidiary company. Disclosures on materially significant related party transactions: Your Company has not entered into any transaction of a material nature except transactions with related parties which are furnished under Notes to the Financial Statements as stipulated under Accounting Standard 18 (AS-18).

appointment and remuneration of relatives of Directors for holding an office of profit pursuant to Section 314 of the Companies Act. etc. where the matters are of grave nature. the commission paid to them is based on their overall performance and their commitment towards attending the meetings of the Board and devoting time and attention to the affairs of the Company. make Protected Disclosures directly to the Chairperson of the Audit Committee of the Board of Directors of the Company. Remuneration Committee: The Board of Directors has constituted a Remuneration Committee comprising of Independent Directors. the Chief Financial Officer and Company Secretary and the Vice President – Human Resources.Asian Paints Limited Annual Report 2011-2012 4. risks involved. an Ethics Committee has been constituted comprising of the Managing Director & CEO. c) Shareholder’s Rights: Half yearly results of your Company are sent to all the shareholders of the Company.e. The employees may. moral and legal business conduct and its commitment to open communication. The employees can make Protected Disclosures to the Ethics Committee regarding any malpractices or event or activity that may have occurred in the organisation and which may be considered as unethical or fraudulent. Code of Conduct: Your Company has adopted a Code of Conduct for all the employees including the Board Members and Senior Management Personnel of the Company in accordance with the requirement under Clause 49(I)(D) of the Listing Agreement. The Risk Council meets on a periodical basis to review the risk management framework and discuss on risk mitigation plans. Details of compliance with mandatory and non-mandatory requirements of Clause 49 of the Listing Agreement: Your Company has complied with all the mandatory requirements of Clause 49 of the Listing Agreement. Also. new initiatives. Any new Director who joins the Board is presented with a brief background of the Company and is informed of the important policies of the Company including the Code of Conduct for Directors and Senior Management Personnel and the Code of Conduct for Prevention of Insider Trading. f) Mechanism for evaluating Non-Executive Board Members: Your Company does not have a formal mechanism for evaluating the performance of the Non-Executive Members of the Board. General Manager Internal Audit & Risk is the convenor of the council meetings. i. The Code of Conduct has been posted on the website of the Company. Risk Management: Your Company has constituted a Risk Council comprising of Business Unit heads and other functional heads of the Company including the Chief Financial Officer & Company Secretary. In accordance with the Policy. All the Board Members and the 127 . Your Company makes presentations to Institutional Investors and Equity Analysts on the Company’s performance on a half yearly basis. 5. in compliance with this requirement. Your Company continues to adopt best practices to ensure a regime of unqualified financial statements. d) Audit Qualifications: During the year under review. g) Whistle Blower Policy: Your Company has adopted a Whistle Blower Policy with an objective to provide employees and Business Associates a framework and to establish a formal mechanism or process whereby concerns can be raised in line with the Company’s commitment to highest standards of ethical. and seek their opinions and suggestions on the same. strategy. Following is the status of the compliance with the non-mandatory requirements: a) b) Non-Executive Chairman’s Office: The Chairman of your Company is a Non-Executive Director and hence. However. e) Training of Board Members: The Managing Director & CEO and other senior management personnel of your Company make presentations to the Board Members on a periodical basis. the Directors are briefed on their specific responsibilities and duties that may arise from time to time. the Compliance Officer. plans. The Risk Council has laid down procedure for risk assessment and minimisation which are presented to the Audit Committee and the Board of Directors on a periodical basis. there was no audit qualification in the Company’s financial statements. briefing them on the operations of Company. The Remuneration Committee determines and recommends to the Board the remuneration payable to the Directors in whole-time employment including the Managing Director of the Company and recommends the selection.. 1956. 6.

: 67720300/ 67720400/ 28511872 Fax No. 18/2011 dated 29th April. 2nd Floor. (c) All important information pertaining to the Company is also mentioned in the Annual Report of the Company which is circulated to the members and others entitled thereto for each financial year. Sakinaka. Shantinagar. Directors’ Report. Mumbai . No. Off. persons forming part of promoter(s)/ promoter group(s). Raheja Centre. 2011. The Directors. In view of the above circulars issued by MCA. Mumbai . Free Press Journal Road. senior management personnel.: 022-39818888 E-mail: investor. LTD.: 2288 1568/ 2288 1569/ 2282 5163/ 2288 4527 Fax No. who are expected to have access to unpublished price sensitive information relating to the Company. Nariman Point. Mumbai . 8.com. Code of Conduct for Prevention of Insider Trading: The Board of Directors at their meeting held on 17th November. are covered under the said code. Sharepro Services (India) Private Limited. persons forming part of promoter(s)/ promoter group(s) and such other designated employees of the Company. 2012. Samhita Warehousing Complex. 2011 and Circular No. i. Tel. 2011. B. Jayesh Merchant.com OR 128 . buy or sell any number of shares during the next six months following the prior transaction and also are restricted from taking any position in derivative transactions in the shares of the Company at any time. 17/2011 dated 21st April. documents and other communication to the shareholders in electronic mode. LTD. Anand.relations@asianpaints. All the Directors. Santacruz (E). Your Company encourages its shareholders to support the “Green Initiative” by registering their email addresses with their respective depositories/ Company’s Registrar and Transfer Agent and intimate changes in the email address from time to time. this year too your Company is sending documents like the Notice convening the general meetings.asianpaints. designated employees etc. senior management personnel. are restricted in purchasing. K. persons forming part of promoter(s)/ promoter group(s) and other designated employees of the Company are restricted from entering into opposite transaction. ASIAN PAINTS LIMITED 6A.: 2282 5484 E-mail: sharepro@shareproservices. (b) The results of the Company are also posted up on the Company’s corporate website: www. S. selling and dealing in the shares of the Company while in possession of unpublished price sensitive information about the Company as well as during certain periods known as “Quiet Period”.Senior Management Personnel have affirmed their compliance with the said Code of Conduct for the financial year ended 31st March.400 055 Tel. Chief Financial Officer and Company Secretary is the Compliance Officer. Mr. (d) Your Company provides necessary information to the Stock Exchanges in terms of the Listing Agreement and other rules and regulations issued by the Securities Exchange Board of India.: 022-39818000 Fax No. Unit: Asian Paints Limited 912.400 021. senior management personnel.e. No. Sakinaka Telephone Exchange Lane. Andheri (E). Management Discussion and Analysis: This annual report has a detailed section on Management Discussion and Analysis. The Company’s official news releases and presentations made to the institutional investors and analysts are also available on the Company’s website. Means of Communication: (a) Quarterly/ Half yearly/ Nine-months and Annual Audited Financial Results of the Company are published in the all India editions of Business Standard and Mumbai editions of Free Press Journal and Navshakti. Andheri-Kurla Road. GREEN INITIATIVE IN CORPORATE GOVERNANCE: Pursuant to Circular No. Managing Director & CEO of the Company forms part of the report. Unit: Asian Paints Limited 13 AB. 7.: 2859 1568 E-mail: sharepro@shareproservices. Auditors’ Report. All the Directors.400 072 Tel.. Financial statements. The declaration to this effect signed by Mr. 2011 adopted a New Code of Conduct for Prevention of Insider Trading in accordance with the Securities Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations.com SHAREPRO SERVICES (INDIA) PVT. Ministry of Corporate Affairs (MCA) has launched “Green Initiative in Corporate Governance” whereby the companies are allowed to send notices. etc to the email address provided by you to your Depository Participant (DP)/ Company’s Registrar and Transfer Agent. No.com SHAREPRO SERVICES (INDIA) PVT. their relatives. like last year.

2012. 2012 On or around 22nd October. 2012 8th May. 2013 Book Closure: The dates of book closure are from 9th June.1 167. 2012 Yashwantrao Chavan Pratisthan Auditorium.7 163. 25th June. 2011 21st January.400 001 National Stock Exchange of India Limited (NSE) Exchange Plaza. A final dividend of ` 30.9 91.Asian Paints Limited Annual Report 2011-2012 General Shareholder Information 66th Annual General Meeting of the Company: Date Venue Time Monday. General Jagannath Bhosle Marg. Mumbai . 2012 and subject to the approval from the shareholders at the ensuing Annual General Meeting.400 021. 2012 On or around 21st January.5 Proportion to capital (` in crores) 124. Chavan Centre. will be paid/ dispatched on or after 26th June.1 The Company has paid the listing fees for the financial year 2012-13 to the Stock Exchange(s) on which Company’s shares are listed.50 (Rupees Thirty and Paise Fifty only) per share has been recommended by the Board of Directors at its meetings held on 8th May.50 (Rupees Nine and Paise Fifty only) per equity share of ` 10 each was declared on 21st October. Mumbai . The Company has also paid custodial fees for the year 2012-13 to National Securities Depository Limited 129 . to those members whose names appear on the Company’s register of members. 25th Floor. 2012. 2. Dalal Street.m. First Quarter Second Quarter and Half Yearly Third Quarter and Nine Months Fourth Quarter and Annual The details of dividend declared and paid by the Company for the last five years are as below: Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 (Interim) Listing: The Company’s shares are listed on: • • BSE Limited (BSE) Phiroze Jeejeebhoy Towers. Dividend: An interim dividend of ` 9. Bandra-Kurla Complex. in respect of shares held in electronic form. 2012. inclusive of both days. Bandra (East). 3. results were announced on: 26th July.9 306. Next to Sachivalaya Gymkhana. to those members whose names appear in the statement of beneficial ownership furnished by NSDL and CDSL as at the closing hours of 8th June. 2012 as follows: 1. 2012 to 25th June. results will be announced as per the tentative schedule below: On or around 26th July. 2013 On or around 10th May.400 051 Percentage (%) 130 170 175 270 320 95 In ` per share 13 17 17. B. 2011 21st October. Mumbai . 2012 First Quarter Second Quarter and Half Yearly Third Quarter and Nine Months Fourth Quarter and Annual For the year ending 31st March.9 258. after giving effect to all valid share transfers in physical form lodged on or before 8th June. Financial calendar: Financial year: 1st April to 31st March For the year ended 31st March. 2013. 2011. 2011 and paid on 1st November.00 p. 2012. Y.5 27 32 9.

643.25 2.00 2. Asian Paints Share Price Movement 4000 3800 3600 3400 30000 28000 26000 24000 22000 20000 18000 16000 14000 12000 Asian Paints 3200 3000 2800 2600 2400 2200 2000 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 10000 Asian Paints SENSEX The performance of your Company’s share price during the financial year 2011-12 is as follows: Name of the Stock Exchange Price as on 1st April.998.00 2.40 3.10 2.62 130 Sensex .908.787 50.50 2.019 15.16.736 2.204.626.242.200. The stock exchange codes assigned to your Company’s shares at these stock exchanges are as follows: Stock Exchange BSE NSE Stock Price Data: The monthly high and low prices and volumes of your Company’s shares at BSE and NSE for the year ended 31st March.00 3.00 3.555.00 2.00 3.503 1.40 2.980.55 3. 2012 are given as follows: Month high (`) 2011 April May June July August September October November December 2012 January February March 2.35 28.45 28.56 NSE 2.333.116 19.05 3.060.00 3.00 2.60. of Shares) Code 500820 ASIANPAINT Note: High and low are in ` per traded share.826.203.70.95 3.190 19.038.901.05 2.780.00 3.909 11.15 3.001.001.048 21.00 3.437 1.85 2.00 2.420 11. The Chart below shows the comparison of your Company’s share price movement on BSE vis-à-vis the movement of the BSE Sensex for the year 2011-12 (based on month end closing).21.00 3.24.65 3.65.75 719.00 3.00 2.368.87.195.73.780. of Shares) high (`) NSE Low (`) Volume (No.00 3.327.80 3.329.825.714 1.752 94.115 13.82.237.067.00 3.19.988.76.00 3. 2011 (`) Price as on 30th March.337 87.001.39.905 10.00 721. 2012 (`) Change in value (`) % Change BSE 2.230.00 2.560.900.00 12.158 3.516 2.792 21.079 92.040.00 3.00 2.00 3.90 3.(NSDL) and Central Depository Services (India) Limited (CDSL).00 3.230.270.520.95 3.465 1. Volume is the total monthly volume of trade in Asian Paints shares on BSE and NSE.965.00 3.338.214 BSE Low (`) Volume (No.637.898.00 3.42.00 1.30 2.00 3.387.511.340.00 2.45.462.364 16.550.00 3.94.391 3.04.48.00 3.05 2.215.518.74.00 2.69.004.02.332.365.000. The International Security Identification Number (ISIN) allocated to the Company by NSDL and CDSL is INE021A01018.90 2.551.32.295 3.260.05 3.

1956 and the Listing Agreement.68 2.87 26.12 0.00 5424151 5. Distribution of Shareholders’ holdings: The distribution pattern of shareholding of your Company as on 31st March.34 0. 2012 is as follows: Shareholders Number UPTO 501 1001 2001 3001 4001 5001 Total 500 1000 2000 3000 4000 5000 10000 53297 4459 1342 427 205 165 232 410 60537 % 88.71 10635701 40000978 50636679 11.01 7.15 17. etc.00 10001 & ABOVE 131 .50 47.76 85.38 0. approved by the Share Transfer Committee is placed before the Board of Directors from time to time for their review.68 0.76 0.90 1.66 1612603 5889 6861288 17143330 25623110 1. transmissions. deletion requests.79 No.37 0.22 0.07 1. 2012 is as follows: Category of shareholder (A) (a) (b) (B) (1) (a) (b) (c) (d) (2) (a) (b) Shareholding of Promoter and Promoter Group Individuals/Hindu Undivided Family Bodies Corporate Total Shareholding of Promoter and Promoter Group (A) Public shareholding Institutions Mutual Funds / UTI Financial Institutions/Banks Insurance Companies Foreign Institutional Investors Sub-Total(B) (1) Non-Institutions Bodies Corporate Individuals I) Individual shareholders holding nominal share Capital up to ` 1 lakh II) Individual shareholders holding nominal share capital in excess of `1 lakh (c) Individual (Non-Resident individuals) Sub-Total(B) (2) Total Public Shareholding (B)=(B)(1)+(B)(2) Total (A)+(B) 11863378 865091 1507370 19659990 45283100 95919779 12.78 1.70 52.04 7.68 100.57 20.72 3.37 2. of shares % Distribution of shareholding of the Company by number of shares held as on 31st March.21 100. The Committee ordinarily meets once every fortnight.70 0.00 Shareholding Number 4528678 3529915 1985191 1077138 723684 749109 1686754 81639310 95919779 % 4.27 0.Asian Paints Limited Annual Report 2011-2012 Share transfer system: The applications and requests received by your Company for transfer of shares held in physical form are processed and the share certificates for the same are sent to the transferee within the stipulated period under the Companies Act..09 41. A summary of all the transfers.11 100.

Shareholders holding shares in physical form: Investors who would like to avail NECS facility and are holding shares in physical form may send in their NECS Mandate Form. Samhita Warehousing Complex. loss/ damage of dividend warrants in transit and correspondence relating to revalidation/ issue of duplicate warrants. 2009. dividend will be credited to the shareholders’ bank account through NECS where complete core banking details are available with the Company. National Electronic Clearing System (NECS) for dividend: The remittance of dividend through Electronic Clearing System has been moved to National Electronic Clearing System (NECS) platform through core banking system effective 1st October. Sakinaka Telephone Exchange Lane. who continue to hold shares in physical form. Break up of shares in physical and demat form as on 31st March. Shareholders holding shares in electronic/ dematerialised form: Investors holding shares in demat or electronic form may check the details on record with the concerned Depository Participant (DP).26 Number of shareholders 49.00 Outstanding GDRs/ ADRs/ Warrants/ Convertible Instruments and their impact on equity: The Company does not have any outstanding GDRs/ ADRs/ Warrants/ Convertible Instruments as on 31st March.Details about Company’s dematerialised shares as on 31st March. Raheja Centre. confirms that the total listed and paid up capital of the Company is in agreement with the aggregate of the total number of shares in dematerialised form (held with NSDL and CDSL) and total number of shares in physical form. Off Andheri-Kurla Road. In the event any branch of a bank has not migrated to core banking system. Sharepro Services (India) Private Limited. Nariman Point. the Company is obliged to pay dividend on dematerialised 132 .89. Sakinaka. of Shares 2630116 91803373 1486290 95919779 % of shares 2. This service not only provides instantaneous credit to the shareholders account and protects against fraudulent interception and encashment of dividend warrants but also eliminates dependence on the postal system. For any clarification. inter alia.400 072 or Sharepro Services (India) Private Limited. Details of public funding obtained in the last three years: Your Company has not obtained any public funding in the last three years. 2012: Number of shares 9. 2012.32. Mumbai . a qualified Practicing Company Secretary carries out the Reconciliation of Share Capital Audit to reconcile the total admitted capital with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and the total issued and listed capital. assistance or information. Andheri (E). duly filled in to the Company’s Registrar and Transfer Agent. Accordingly.74 95. 2nd Floor.15 Shareholders. please contact the Registrar and Transfer Agent of the Company.55 100. Free Press Journal Road.71 1.): L24220MH1945PLC004598 Reconciliation of Share Capital Audit: As stipulated by the Securities and Exchange Board of India.663 % of total shares 97. are requested to dematerialise their shares at the earliest and avail of the various benefits of dealing in securities in electronic/ dematerialised form. The NECS Mandate instruction should be under the signature of the shareholder(s) as per the specimen signature records lodged with the Company. The audit. 2012 is as follows: Physical Segment Demat Segment NSDL CDSL Total No. This audit is carried out every quarter and the report thereon is submitted to the Stock Exchanges and is also placed before the Board of Directors. 13 AB. Mumbai .126 % of total shareholders 81. 912.400 021. or where core banking account is not furnished by the shareholder to the Depository/ Company as the case may be. Other Information: Corporate Identification Number (CIN No. the Company will print details available in its records on the dividend warrants to be issued to the shareholders. The shareholders have the option to hold Company’s shares in demat form through the National Securities Depository Limited (NSDL) or Central Depository Securities Limited (CDSL). Pursuant to the Depository Regulations.

012. transmission.28 1. Mumbai .5 177. and e-mail ID.7 52.183. The Company is in the process of sending reminders to the concerned shareholders in accordance with the said clause. Sharepro Services (India) Private Limited.933.11.7 62.11.2 76. Members holding shares in physical form and desirous of making a nomination are requested to send their requests to the Company’s Registrar and Transfer Agent.3 100. to the Registrar and Transfer Agent of the Company.959.2016 15. deletion and transposition of shares in physical form.2015 23.07.04 1.07. 13 AB.08. In accordance with Clause 5A (II) of the Listing Agreement. Securities and Exchange Board of India (SEBI). 2009.598. by sending their original share certificates along with a request letter to consolidate their shareholding into a single folio. Nariman Point. 2010 has made it mandatory for the transferee(s) to furnish the copy of the PAN Card to the Company for registration of physical transfer of shares and for transmission. and SEBI/MRD/DoP/SE/RTA/Cir-08/2010. 1956. Sakinaka Telephone Exchange Lane.00 0. Shareholders are requested to ensure that they claim the dividend(s) from the Company before transfer to the IEPF. 133 . Such e-mail ID shall be registered in the records of the Company.50 0.07.2018 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010.07.2014 25. Mumbai . the Company has identified 1.494. Shareholders/ Beneficial holders should mention their Contact Nos.3 95.793. dated 7th January.530. 912.973. the Company is required to transfer the amount of dividend remaining unclaimed for a period of seven years from the date of transfer to the unpaid dividend account to the Investor Education and Protection Fund (IEPF).00 0.42 4.400 021.00 0. members are entitled to make a nomination in respect of the shares held by them.2013 12.474.793.11.2016 21. Members holding shares in electronic form are requested to give the nomination request to their respective Depository Participants directly.5 81.4 91. to the Company.5 81.612./ DP Id and Client Id. by its Circular No.284. deletion or any other request.41 3.517.2017 23.3 105.1 Unclaimed Dividend as on 31.03. Raheja Centre.935 shares of face value of ` 10 each.00 0. Andheri (E).00 0.830.26 1.2015 25.2012 25.50 0.50 0.2014 18. which are unclaimed as on 31st March. MRD/DoP/Cir-05/2009 dated 20th May. Nomination facility: Pursuant to the provision of Section 109A of the Companies Act. Due dates for transfer of dividend unclaimed to IEPF are as follows: Financial Year Type Proportion to capital (` in crores) 52.11.829.670.923 folios comprising of 51.2012 25.5 225. Free Press Journal Road.43 Due Date for transfer to IEPF 26.07.475. Andheri-Kurla Road.00 0.37 3.28 1. as the case may be.749.11.28 393.Asian Paints Limited Annual Report 2011-2012 shares as per the details furnished by the concerned DP. 2012.2011 2011-2012 • • • Final Interim Final 1st Interim 2nd Interim Final Interim Final Interim Final Interim Final Interim Final Interim General Do’s and Don’ts: Shareholders/ Beneficial holders should quote their Folio No. Shareholders are requested to furnish self-attested copy of their PAN card.31 3.307. Off.2014 23.04.905.807.56 0.700.372.41 9.348.07.31 2. Samhita Warehousing Complex. Consolidation of Folios: Members holding shares of the Company in physical form through multiple folios are requested to consolidate their shareholding into single folio.2012 ` % 1.8 43. at the time of submitting the physical share certificate(s) for transfer./ Fax Nos.11.840.047.317.9 62.33 2.41 3.00 0.538.45 6.00 0.11. Sakinaka. 1956.2013 29.8 62. Unclaimed dividend/ shares: In terms of Sections 205A and 205C of the Companies Act.00 0. in all the correspondences with the Company.2017 26.2018 20.45 0. 2nd Floor.400 072 or Sharepro Services (India) Private Limited.00 0. The Company or the Registrar and Transfer Agent cannot make any change in such records received from the Depository.

com Members are requested to quote their e-mail address. telephone number and full address for prompt reply to their communication. Unit: Asian Paints Limited 13 AB. Sakinaka. Sriperumbudur . Khandala Industrial Area. MIDC. Plot Nos. MIDC.400 072 Tel. Ltd. Taloja.II. 2282 5163. Tamil Nadu. Free Press Journal Road. Patancheru . 2nd Floor. is the Registrar and Transfer Agent of the Company. Tamil Nadu. Gujarat.com For the benefit of shareholders. Santacruz (E). Gujarat. Raheja Centre. Samhita Warehousing Complex. Kasna . Mumbai . Taluka Khandala.com The above exclusive e-mail iD is disclosed by the Company on its websites and all the various materials.502 319 Dist. UPSIDC Industrial Area. 2602/ 2702. Nariman Point. Maharashtra. Phthalic Plant: Plot No.relations@asianpaints. beneficial owners and depository participants (DPs) are requested to send/ deliver the documents/ correspondence relating to the Company’s share transfer activity etc. Ltd. GIDC Industrial Area. Kasna Village. Dist. documents will continue to be accepted at the following registered office of the Company: Asian Paints Limited 6A.203 207. Andheri-Kurla Road. Tel. Taloja Plant (Industrial Paints): Plot No. Mumbai . Investors holding shares in dematerialised form should send all the communications related to change in address or change in bank details to their Depository Participant.: 2282 5484 E-mail: sharepro@shareproservices.: 022-39818000 • Fax No. Sipcot Industrial Complex. publications and communication to the shareholders at large. Raigad . Website: www. Kancheepuram District.com Sharepro Services (India) Pvt. correspondence. Unit: Asian Paints Limited 912. Rohtak . Mumbai . Mumbai .607 005. 3/ 2.asianpaints. Registrar and Transfer Agent: Sharepro Services (India) Pvt. PO Kherisadh Village. Andheri (E).. 134 .com E-mail ID for Investor’s Grievances: The e-mail address for investor grievance is investor. Plot No.400 055 Tel. Phase II. Plot No.400 021. Shareholders. No. Cuddalore . Ankleshwar 393 002.: 2288 1568. 2702. Plant locations Paint Plants: Lal Bahadur Shastri Marg.412 802. 2288 4527 • Fax No. Medak. Haryana. 2288 1569.relations@asianpaints.: 022-39818888 E-mail: investor. Off. Registrar and Transfer Agent of the Company at the following addresses: Sharepro Services (India) Pvt.: 67720300/ 67720400 • Fax No. 50-55.393 002. No. 1. Industrial Development Area. Shantinagar. A-1. Maharashtra.• • Shareholders are requested to maintain a record of their specimen signature before lodgement of shares with the Company to obviate possibility of difference in signature at a later date. Sakinaka Telephone Exchange Lane. Gautambudh Nagar . Ltd. Uttar Pradesh.602 105. Maharashtra. No. SIPCOT Industrial Park. Satara .124 027.: 2859 1568 E-mail: sharepro@shareproservices. Site of the proposed Khandala Plant: Plot A1. Bhandup. Ankleshwar . Ltd. Greater Noida. Plot Nos. IMT. GIDC Industrial Area.400 078.410 208. Penta Plant: B-5 and 10. Andhra Pradesh. to Sharepro Services (India) Pvt. E6-F13. Sector 30 B.

Anand Managing Director & CEO Mumbai. For Shah & Co. 2012 For B S R & Associates Chartered Accountants Firm Registration Number: 116231W Natrajh Ramakrishna Partner Membership No. 2012. K. It is neither an audit nor an expression of opinion on the financial statements of the Company. 103750 Mumbai. 8th May. and the representations made by the Directors and the Management. 2012 Certificate by the Joint Statutory Auditors as to the compliance of the conditions of Corporate Governance The certificate by the Joint Statutory Auditors of the Company as to the compliance of the conditions of Corporate Governance pursuant to Clause 49(VII)(1) of the Listing Agreement is given below: AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE TO THE MEMBERS OF ASIAN PAINTS LIMITED We have examined the compliance of conditions of Corporate Governance by Asian Paints Limited (‘the Company’) for the year ended 31st March. affirmation(s) that they have complied with the Code of Conduct for Board Members and Senior Management Personnel in respect of the financial year ended 31st March.Asian Paints Limited Annual Report 2011-2012 Annexure to Report on Corporate Governance for the year ended 31st March. In our opinion and to the best of our information and according to the explanations given to us. 2012 as stipulated in Clause 49 of the Listing Agreement of the Company entered into with the stock exchanges in India. Our examination was limited to procedures and implementation thereof. B. The compliance of conditions of Corporate Governance is the responsibility of the Company’s management. 8th May. S. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. 32815 135 . Chartered Accountants Firm Registration Number: 109430W Ashish Shah Partner Membership No. 2012 DECLARATION OF COMPLIANCE WITH THE CODE OF CONDUCT I hereby confirm that: The Company has obtained from all the members of the Board and Senior Management Personnel. adopted by the Company for ensuring the compliance of the conditions of Corporate Governance.

(Registration Number 116231W) Chartered Accountants. 1956 and Article 118 of the Articles of Association of the Company. To appoint the Auditors of the Company and in this regard to consider and if thought fit. 6. declared and paid during the financial year ended 31st March. S. if any. perquisites. offers himself for re-appointment. B. to pass with or without modification. B. S. as may be decided by the Board of Directors. 4. Anand with the Company for the aforesaid appointment and as set out in this notice. B. being eligible. deeds. B. approval of the Company be and is hereby accorded to the appointment of Shri K. difficulty or doubt. benefits and amenities not exceeding the ceiling laid down in Section II of Part II Schedule XIII of the Companies Act. To appoint a Director in place of Shri Ashwin Choksi. Chavan Centre. Next to Sachivalaya Gymkhana. B. S. 25th June. To consider and declare payment of final dividend and confirm the interim dividend of ` 9. 2012 at 3. B. Anand in the light of further progress of the Company which revision should be made in conformity with any amendments to the relevant provisions of the Act and/or rules and regulations made thereunder and/ or such guidelines as may be announced by the Central Government from time to time. 2012 to 31st March. in respect of whom the Company has received notice under Section 257 of the Companies Act. the following resolution as an ordinary Resolution: “RESoLVED ThAT M/s.Notice Notice is hereby given that the SIXTY-SIXTh ANNUAL GENERAL MEETING of ASIAN PAINTS LIMITED will be held at Yashwantrao Chavan Pratisthan Auditorium. Chartered Accountants (Registration Number 109430W) and M/s. who retires by rotation and. perquisites. B S R & Associates. enlarge. To appoint a Director in place of Dr. To consider and if thought fit. be and is hereby appointed as a Director on the Board of Directors of the Company with effect from 1st April. 2012. perquisites. proper or expedient for the purpose of giving effect to this resolution and for matters concerned therewith or incidental thereto. 1956. to transact the following business: ordinary Business: 1. 317 and Schedule XIII and such other applicable provisions. To appoint a Director in place of Shri Ashwin Dani. RESoLVED FURThER ThAT approval be and is hereby accorded to the remuneration. the following resolution as an ordinary Resolution: “RESoLVED ThAT Shri K. RESoLVED FURThER ThAT the Board of Directors of the Company be and are hereby authorised to enhance. being eligible. consider and adopt the annual accounts for the year ended 31st March. S. benefits and amenities payable as per the terms and conditions of the Agreement entered into by Shri K. Anand who was appointed as an Additional Director with effect from 1st April. the following resolution as an ordinary Resolution: “RESoLVED ThAT pursuant to the provisions of Sections 198. 2012. 269.” 2. matters and things as may be necessary and sign and execute all documents or writings as may be necessary. 2012 by the Board of Directors of the Company on 29th March. Mumbai . of the Companies Act. 1956 and who is eligible for appointment as a Director of the Company. if any. being eligible.” Special Business: 8.” 9. being eligible. To receive. RESoLVED FURThER ThAT in the event of loss or inadequacy of profits in any financial year during the aforesaid period. who retires by rotation and. S. 2015.50 per equity share. benefits and amenities payable to Shri K. offers himself for re-appointment. alter or vary the scope and quantum of remuneration. the Company will pay Shri K. 2012. the prescribed provisions of the Act and/or any schedules thereto. be and are hereby appointed as Joint Statutory Auditors of the Company. to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting of the Company on such remuneration as shall be fixed by the Board of Directors. 2012 together with the Reports of the Board of Directors and Auditors thereon. that may arise in giving effect to this resolution. General Jagannath Bhosle Marg. RESoLVED FURThER ThAT the Board of Directors of the Company be and are hereby authorised to settle any question. on Monday. To consider and if thought fit. 3. Anand as the Managing Director & CEO of the Company. with effect from 1st April. who retires by rotation and. with authority to the Board of Directors of the Company to alter and/or vary the terms and conditions of the said appointment in accordance with. 309. subject to necessary sanctions and approvals. Sivaram. offers himself for re-appointment. Anand remuneration.00 p. (hereinafter referred to as “the Act”) including any statutory modifications or any amendment or any substitution or reenactment thereof for the time being in force. pursuant to Section 260 of the Companies Act. 5.400 021. 1956. do all such acts. who retires by rotation and.m. 7. to pass with or without modification(s). to pass with or without modification(s). (i) . offers himself for re-appointment. To appoint a Director in place of Shri Abhay Vakil. S. Shah & Co. Y.

will be paid on or after 26th June. The Company is presently using National – ECS (NECS) for dividend remittance. Members holding shares in physical form can submit their PAN details to the Company. 13AB Samhita Warehousing Complex. 9. Information required under Clause 49 IV G of the Listing Agreement (relating to Corporate Governance) with respect to the Director being appointed and Directors retiring by rotation and being eligible seeking re-appointment is as under: 4. 12. VOTE INSTEAD OF HIMSELF/HERSELF. A Proxy need not be a member of the Company.400 072 at the earliest but not later than 8th June. 3. therefore requested to submit the PAN to their Depository Participant with whom they are maintaining their demat accounts. 2005 and Interim Dividend for the financial year ended 31st March. Members are requested to hand over the enclosed Attendance Slip.Kurla Road. (ii) . 1956. 10. Sundays and Public Holidays till the conclusion of the Annual General Meeting. 2012 to those members whose names appear on the Register of Members as on 9th June. In terms of Sections 205A and 205C of the Companies Act. duly signed in accordance with their specimen signature(s) registered with the Company for admission to the meeting hall. Members desirous of making a nomination in respect of their shareholding in the Company.00 a. Raheja Centre. a duly certified copy of the Board Resolution authorising their representative to attend and vote at the Annual General Meeting.m. 2. Explanatory Statement pursuant to Section 173(2) of the Companies Act. 2012 and 25th November. Corporate Members are requested to send to the Company’s Registrar and Transfer Agent.00 p. Free Press Journal Road. The documents referred to in the proposed resolutions are available for inspection at the Registered Office of the Company during working hours between 11.. requested to bring their copies of the Annual Report to the Meeting. Members holding shares in physical form are requested to notify/ send the following to the Company’s Registrar and Transfer Agent at: Sharepro Services (India) Pvt. and Particulars of their bank account. 1956.. Members are therefore. The address/bank mandate as furnished to the Company by the respective Depositories viz. Proxies in order to be effective must be received by the company at its registered office not later than forty-eight hours before the commencement of the meeting. Off Andheri . 8. 2012. if approved by the Members at the Annual General Meeting. Societies. Members who hold shares in dematerialised form are requested to bring their Client ID and DP ID Numbers for identification. Andheri (East). Nariman Point. in the year 2012-2013. 2012 to 25th June. are requested to send the same to the office of the Registrar and Transfer Agent of the Company. 912. 5. etc. to the Investor Education and Protection Fund on or before 26th July. Ltd. the Company would be transferring the unclaimed or unpaid Final Dividend for the year ended 31st March. as permitted under Section 109A of the Companies Act. 2012. in case the same have not been sent earlier. Proxies submitted on behalf of the Limited Companies. 11. As a measure of austerity. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING MAY APPOINT A PROXY TO ATTEND AND ON A POLL. Members holding shares in electronic form are. 2012 (both days inclusive). 6. Sakinaka Telephone Exchange Lane. 1956 the amount of dividend remaining unclaimed or unpaid for a period of seven years from the date of transfer to the unpaid dividend account is required to be transferred to the Investor Education and Protection Fund (IEPF). as per the details furnished by the National Securities Depository Limited (NSDL)/ Central Depository Services (India) Limited (CDSL) for the purpose as on that date. 13. in respect of the Special Business to be transacted at the Annual General Meeting as set out in the Notice is annexed hereto. 7. In respect of shares held in electronic form. Shareholders are requested to ensure that they claim the dividend(s) from the Company before transfer of the said amounts to the IEPF. • • Any change in their address/mandate/bank details. must be supported by an appropriate resolution/authority. Sakinaka. respectively. Members holding shares in the electronic form are requested to inform any changes in address/bank mandate directly to their respective Depository Participants. Accordingly. copies of the annual report will not be distributed at the Annual General Meeting. Mumbai . Unit: Asian Paints Limited.Notes: 1. Dividend recommended by Directors. Second Floor. NSDL and CDSL will be printed on the dividend warrants.. The Securities Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN) by every participant in securities market.m to 1. 2006. 2012. The Register of Members and Share Transfer Books of the Company will remain closed from 9th June. 2012.. Mumbai 400 021 or Sharepro Services (India) Pvt. the dividend will be payable on the basis of beneficial ownership as at the close of 9th June. on all days except Saturdays. Ltd. 14. as applicable.

1970 : • • • Asian PPG Industries Limited Member – Audit Committee Gujarat Organics Limited Hitech Plast Limited Chairman – Investor Grievance Committee • • • • Resins & Plastics Limited Chairman – Investor Grievance Committee Sun Pharmaceuticals Industries Limited Rangudyan Insurance Broking Services Limited ACC Limited Date of joining the Board Directorships and Committee Memberships in other Companies No. He joined Asian Paints in 1965 and was initially inducted into the materials function of the Company.570 : Shri Ashwin Dani : Shri Ashwin Dani started his career in 1967. 1970 : NIL : 78. Shri Ashwin Dani is the past President of the Indian Paint Association (IPA) and has received a number of awards for his contributions to the Paint Industry. metal containers and other packaging goods as well as branding and pricing strategies. Akron.D. he was holding the post of Wholetime Director in the Company.09. He completed his B.207 : Shri Abhay Vakil : Shri Abhay Arvind Vakil has been associated with the Company since 1974. Works Director. Presently he holds the position of Non-Executive Chairman in the Company. (Tech) (Pigments and Varnishes) from U. 1998 to March. Whole-time Director and Vice Chairman. of shares held in the Company Name of the Director Profile : 18th October. of India and was also the President of the Board of Governors of the UDCT Alumni Association. USA. a major supplier of automotive OEM and refinishes. He was in sole charge of the supply chain/sales and marketing activities of the Decoratives Business Unit of the Company that included procurement of raw materials. Ohio. Abhay Vakil is a Science Graduate from Mumbai University and BS from Syracuse University USA.Name of the Director Profile : Shri Ashwin Choksi : Shri Ashwin Choksi obtained his Masters degree in Commerce from Sydenham College. Shri. of shares held in the Company: Name of the Director Profile : 2.C.Sc. maintenance of quality and ensuring achievement of the targeted sales and profits. Troy. 2009 and with effect from 1st April.Sc. : 1st March. He joined Asian Paints in 1968 as Senior Executive and moved through successive senior positions like Director – R & D. His role also included the containment of costs. He holds Masters Degree in Polymer Science from University of Akron. (now known as BASF) Detroit. USA and Diploma in Colour Science from Rensellaer Polytechnic. Prior to becoming Managing Director in 1998. Mumbai. as a Development Chemist with Inmont Corp. 1983 Date of joining the Board (iii) . University of Bombay. Mumbai. he is a member of the Board of Management of Institute of Chemical Technology (formerly UDCT). He was a member of the Central Board of Trustees – Employees Provident Fund of the Govt. 2009. Shri Abhay Vakil was overseeing the Decoratives India SBU of the Company. He ceased to be the Managing Director of the Company on 31st March. Currently. (Hons) from the Institute of Science University of Bombay and B. New York. 2009 he holds the position of Non-Executive Director on the Board of Asian Paints Limited. : 18th October.T. Date of joining the Board Directorships and Committee Memberships in other Companies No. He served as Vice Chairman and Managing Director of the Company from December. He rose to the position of the Managing Director in 1984 and went on to become the Executive Chairman in the year 1997.

Shantitnagar. none of the Directors of the Company may be deemed to be concerned or interested in Shri Ashwin Dani’s re-appointment as Director of the Company. He is the Hon. Except. Shri Ashwin Choksi and Shri Mahendra Choksi. Shri Abhay Vakil and Dr. Lafayete. S Sivaram. USA. with several awards and honours.031 : Dr. no other Director of the Company is concerned or interested in Shri Abhay Vakil’s re-appointment as a Director of the Company. Foreign Companies and Section 25 Companies and their Committee memberships are excluded. USA and Research Associate from The Institute of Polymer Science . Except. He serves on the Editorial Board of several National and International journals in chemistry and polymer science. 2006 for his outstanding contribution in the field of science and technology.45. he has been felicitated in recognition of his valuable contribution. none of the Directors of the Company may be deemed to be concerned or interested in Shri Ashwin Choksi’s re-appointment as Director of the Company. He is a scientist of repute – his research interest being “Polymer Synthesis”. Shri Ashwin Dani and Mrs.Sc.Akron. 2001 : • • Apcotex Industries Limited GMM Pfaudler Limited Member – Audit Committee Date of joining the Board Directorships and Committee Memberships in other Companies No. Shri Ashwin Dani. Secretary of Society of Polymer Science. Ph. Sivaram holds M. Santacruz (East). Sivaram. Also. 2012 (iv) . S. Shri Abhay Vakil and Shri Amar Vakil. none of the Directors of the Company may be deemed to be concerned or interested in his reappointment as Director of the Company. Except. Kanpur. Directorships in Private Limited Companies. Membership and Chairmanship of Audit Committees and Investor Grievance Committees of only Public Companies have been included in the aforesaid table. He was bestowed with “Padma Shri” award by the President of India in January.D Purdue University. of shares held in the Company Name of the Director Profile : • • • Asian Paints Industrial Coatings Limited Chairman – Audit Committee Vikatmev Containers Limited Resins & Plastics Limited : 28. The Board of Directors recommends the re-appointment of Shri Ashwin Choksi. Sivaram has over 30 years of experience in research on polymer synthesis. : 7th April. India. Dr. Except. high performance polymers and surface chemistry of polymers. For Asian Paints Limited Jayesh Merchant Chief Financial Officer & Company Secretary Registered Office: 6A.Directorships and Committee Memberships in other Companies No. from Indian Institute of Technology. of shares held in the Company : NIL * Directorships and Committee membership in Asian Paints Limited and its Committees is not included in the aforesaid disclosure. Dr. W. Mumbai . Sivaram : Dr. In a career spanning achievements in the field of “Polymer Synthesis”.400 055 8th May. Ina Dani. S.

2015. 1956. the Board of Directors at its meeting held on 29th March. forthwith upon termination of this employment agreement for any reasons whatsoever. Anand is a Mechanical Engineer with Post Graduation in Management (IIM Calcutta). 1956) Item Nos. he served as Vice President – Sales and Marketing for the Decorative Business Unit of the Company. S. President – Decorative Business Unit would takeover as the Managing Director & CEO with effect from 1st April. 1956. The Board also approved the terms and conditions of his appointment including remuneration. the Managing Director. 2011. Shri K. if he ceases to hold office of a Director due to any cause. E. Anand as an Additional Director with effect from 1st April. 1956 and pursuant to Article 118 of the Articles of Association of the Company. as recommended by the Remuneration Committee. 7. The Company has received notice pursuant to Section 257 of the Companies Act. Prior to his appointment as Managing Director & CEO he held the position of President – Decorative Business Unit since 2008. 2012. an indirect subsidiary of the Company. subject to the approval of the shareholders at the ensuing Annual General Meeting. He joined the Company in the year 1979 and has held various positions in Decorative Sales/ Industrial Sales/ Chemical Sales Function of the Company. 2012 to 31st March. A. B. The Managing Director of the Company shall devote his whole time and attention to the business of the Company and shall use his best endeavour to promote its interest and welfare. of the Companies Act. He is a director on the Board of SCIB Chemical. B. but shall ipso facto and immediately cease to be the Managing Director. From 1998 to 2008. S. not liable to retire by rotation. The appointment of Shri K. The terms and conditions as to the appointment of Shri K. 2012 appointed Shri K.. Anand. Anand are briefly mentioned as under: 1. Anand holds office upto the date of the ensuing Annual General Meeting. The Company shall 2. Thus. Subject to the provisions of the Companies Act. appointed Shri K. while he continues to hold office of the Managing Director. he shall be deemed to have vacated his office as a Director in accordance with the provisions of Section 283 (1)(l) of the Companies Act. pursuant to Section 260 of the Companies Act. The Managing Director shall manage business and affairs of the Company and exercise such powers as are vested in the Managing Director by the Board of Directors subject to any limitation or conditions which may be prescribed by the Act or the provisions of Memorandum and/ or Articles of Association of the Company or the Board of Directors or by the Company in General Meeting. 2012 as per his contract of employment. 3. 309 read with Schedule XIII and other applicable provisions. excluding cases where he is appointed or nominated as a Director on the Board of any of the Company’s subsidiaries. 2012. B. The Managing Director shall maintain confidentiality as any information or knowledge in connection with the business affairs of the Company. on recommendation made by the Adhoc Committee had decided that Shri K.Annexure to Notice EXPLANATORY STATEMENT (Pursuant to Section 173(2) of the Companies Act. 6. B. Murty whose term was due for expiry on 31st March. Anand as a Director. Anand as the Managing Director shall be subject to the supervision and control of the Board of Directors of the Company. For eight years. S. Egypt. from members proposing the appointment of Shri K. B. in accordance with Sections 198. B. M. S. if any. B. S. 2012 from Shri P. B. not less than six calendar months notice in writing. along with the required deposit amount. shall not be liable to retire by rotation and he shall not be reckoned as a Director for the purpose of determining the rotation or retirement of Directors in fixing the number of Directors to retire. Joint Ventures and other associate Companies. 269. 1956. S. 5. Shri K. (v) . The Board of Directors of the Company at its meeting held on 21st October. Notwithstanding the fact the Managing Director was appointed as a Director. he was in the manufacturing function looking after Kasna and Patancheru Plants of the Company. S. obtained by him during the course of his tenure as the Managing Director or at any time thereafter. 2012 and as the Managing Director & CEO with effect from 1st April. The Agreement may be terminated by the Managing Director or the Company by giving. S. 8 and 9: The Board of Directors at its meeting held on 29th March. 1956. The Managing Director after ceasing to be a Managing Director shall not either on his behalf or on behalf of any other person solicit business in competition with the Company from any clients of the Company. S. Anand as an Additional Director with effect from 1st April. 4.

Car: Provision of Company cars for official and for personal purpose of the Managing Director. Salary: For the period from 1st April. as may be determined by the Board of Directors from time to time. 2012. the Company has no profits or its profits are inadequate. 2015: ` 10. The Managing Director will be provided furnished accommodation and in case no accommodation is provided by the Company. Leave encashment for a maximum of three months accumulated leave to be permitted at the end of the term. B. perquisites. reimbursement of personal driver’s salary. benefits and amenities not exceeding the ceiling for the time being laid down in Section II of Part II to Schedule XIII (as amended) of the Companies Act. from time to time. benefits and amenities as aforesaid to be allowed to the Managing Director shall be subject to such limits. Loan and other Schemes: Benefits under loan and other schemes in accordance with the practices. Telephone: Provision of 2 (two) telephones at the residence of the Managing Director and internet broadband and reimbursement of mobile telephone expenses. Anand are as follows: Remuneration A. the Company will pay to the Managing Director. Superannuation: 15% of the basic salary. internet and petrol expenses. B. of the Act. Leave: Leave on full pay and allowances at the rate of one month for every eleven months of service with liberty to accumulate such leave for a period of three months. Other benefits and amenities: Such other benefits and amenities as may be provided by the Company to other senior officers from time to time.be entitled to terminate the employment agreement forthwith at any time by paying him six months’ basic salary in lieu of such notice. benefits and amenities specified hereinabove. The contribution stated at (B) and (C) is subject to any changes effected in the schemes / rules of the respective funds. wherein any financial year during the currency of the tenure of the Managing Director. may be enhanced. S. Other Perquisites: The perquisites other than A. Benefits and Amenities: Gratuity: Benefits in accordance with the rules and regulations in force in the Company from time to time. payable in accordance with the rules and regulations in force in the Company from time to time. 1956. Perquisites and other Benefits payable to Shri K.000 (Rupees Two lacs eighty thousand only) per month. the Managing Director shall be entitled to House Rent Allowance of ` 2. utilities expenses.75% for each financial year on the net profit of the Company as calculated under Section 349 of the Companies Act. as laid down by the Companies Act. C. at the maximum of 0. The perquisites shall be valued as per the Income Tax Act. if any. Provident Fund: 12% of the basic salary. rules and regulations in force in the Company. but exclusive of reimbursement of medical expenses. Such perquisites will include leave travel assistance. A. B. 1956. D. The scope and quantum of remuneration. 1961. perquisites. D and E above shall be within an overall limit of 55% of annual basic salary per annum of the Managing Director. Personal international calls shall be billed by the Company to the Managing Director. Details of Remuneration. B. widened. charges and expenses that may have been or may be incurred by him for the purpose of or on behalf of the Company. Reimbursement of costs. etc. C. C. payment of club fees E. D. enlarged. Notwithstanding anything to the contrary herein. reimbursement of telephone. remuneration. Commission: The Managing Director shall be paid commission with effect from 1st April. The remuneration. 2012 to 31st March. 1956 and such other applicable provisions.000 (Rupees Ten lacs only) per month with increment not exceeding 20% per annum at the discretion of the Board of Directors of the Company. and as may be decided by the Board of Directors of the Company and subject to such sanctions and approvals as may be necessary. perquisites. altered or varied by the Board of Directors in the light of and in conformity with any F. if any. (vi) . Perquisites: A.00.80. charges and expenses: The Company shall pay or reimburse to the Managing Director and he shall be entitled to be paid and/ or to be reimbursed by the Company all costs. (maximum of 2 clubs) excluding entrance fees. E. B..

till the conclusion of the ensuing Annual General Meeting. recommend the resolution set out in Items No. Sundays and Public Holidays. S. B. B. B. except as a member. Shantitnagar. 2012 (vii) . Anand as the Managing Director & CEO is in the best interest of the Company and accordingly. of the Company. as stated here have already been circulated as an abstract under Section 302 of the Companies Act. 8 and 9 for approval of the members. The copy of the agreement for appointment of Shri K. if any. B.00 a. 8 and 9 of this Notice.amendments to the relevant provisions of the Companies Act. on all days except Saturdays.m. For Asian Paints Limited Jayesh Merchant Chief Financial Officer & Company Secretary Registered Office: 6A. Anand. Anand.m. Mumbai . 1956 to the members of the Company. and 1. and/ or the rules and regulations made thereunder and/ or such guidelines as may be announced by the Central Government from time to time. Except Shri K. 1956. detailing terms and conditions of his appointment is available for inspection by the members at the Registered Office of the Company during working hours between 11. S. Anand. none of the Directors of the Company are concerned or interested in the Ordinary Resolutions set out at Item Nos. Santacruz (East).00 p. S. The Board of Directors are of the opinion that the appointment of Shri K. S. The terms of appointment and payment of remuneration to Shri K.400 055 8th May.

JOINT SHAREHOLDER(S) MAY OBTAIN ADDITIONAL SLIP AT THE VENUE OF THE MEETING. a Member/Members of ASIAN PAINTS LIMITED hereby appoint ____________________________________________________in the district of______________________________ _____________________ (or failing him/her) __________________________________________________ in the district of _______________________________________________ as my/our Proxy to attend and vote for me/us on my/our behalf at the 66th Annual General Meeting of the Company to be held on 25th June. Shantinagar. Y.00 p. Mumbai . on Monday. Signed this ___________________day of _____________ 2012 Affix Revenue Stamp Signature ________________________ Note: 1. 2012 at 3. 2012 at 3.400 055. Santacruz (East). B.m. Mumbai .400 055 not less than 48 hours before the time of holding the meeting. of Shares held: _________________________ I/We ______________________________________________________of ________________________________________ _____________________________________________________________________________________ in the district of ______________________________________________ being./Client ID: ___________________ No./Client ID _______________ I/We hereby record my/our presence at the 66th ANNUAL GENERAL MEETING of the Company at Yashwantrao Chavan Pratisthan Auditorium. and at any adjournment(s) thereof. ATTENDANCE SLIP (To be presented at the entrance) DP ID _______________ Folio No.400 021. PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE AUDITORIUM.m. The Proxy need not be a member of the Company.400 055. Shantinagar. PROXY FORM DP ID: __________________ Folio No. Mumbai .Asian Paints Limited Registered Office: 6A. . The Proxy in order to be effective must be duly signed and deposited at the Registered Office of the Company at 6A. General Jagannath Bhosle Marg. Shantinagar. the 25th of June. Santacruz (East). Chavan Centre. Santacruz (East). 2. Next to Sachivalaya Gymkhana.00 p. Name of the Member/Proxyholder Signature of the Member/Proxy ____________________________________________________________________________________________________ Asian Paints Limited Registered Office: 6A. Mumbai .

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The Hon’ble Chief Minister of Haryana. Shri Bhupinder Singh Hooda unveiling the foundation stone on capacity expansion at Rohtak plant .

asianpaints.Asian Paints Limited.com . Mumbai 400 055. Shantinagar. 6A. www. Santacruz (East).

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