www.asianpaints.com Asian Paints (India) Ltd.

6 A Shanti Nagar, Santacruz (E), Mumbai 400 055

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contents
Board of Directors Chairman’s Letter Highlights Directors’ Report Management Discussion and Analysis Five Year Review Corporate Governance Shareholder Information Auditors’ Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules Auditors’ Report on Consolidated Financial Statements Consolidated Balance Sheet Consolidated Profit and Loss Account Consolidated Cash Flow Statement Schedules for Consolidated Accounts 02 04 06 18 22 33 37 44 48 52 53 54 55 82 84 85 86 87

Asian Paints (India) Ltd.

annual report 2004-2005

1935 .board of directors in remembrance Ashwin C Choksi Chairman Ashwin S Dani Vice Chairman & Managing Director Abhay A Vakil Managing Director Shri K. Chartered Accountants .3.14.2005) Leader.1. Philosopher and Mentor Company Secretary Auditors Jayesh Merchant Shah & Co. Rajagopalachari (10.

03 Mahendra Choksi Amar A Vakil Hasit Dani Ms. Tarjani Vakil Dipankar Basu Deepak M Satwalekar R A Shah Dr. S Sivaram Mahendra M Shah Asian Paints (India) Ltd. annual report 2004-2005 .

741 million. I see this as a passing phase. even as the performance of interior and exterior emulsions has remained strong. is a step in the right direction and the economy will see its benefits as we move ahead.4 per cent to Rs. to an extent impacted our performance. In the last year’s annual report. Our strategy of striking a better alignment with the market on pricing and of coming out with new offerings in the economy segment is clearly paying off. I hardly need to emphasise the advantages of such a unified system of taxation for a company like Asian Paints with a manufacturing and customer network spread across different states. Consumers benefit from such a shift. has accomplished significant growth in the topline over the satisfactory performance seen in the previous year. The success of our efforts is reflected in the results for the year. which is the largest contributor to the group’s revenue. Sale of distemper has moved up smartly after a long time.605 million. I had spoken of our focus to become more proactive and aggressive in our efforts to gain market share.chairman’s letter Dear Shareholders. profit after tax and extraordinary item grew by 20. Rising input costs. Changing market dynamics and a keener competitive environment is fostering a transformation of the price-value equation across industries.2 per cent to Rs. The introduction of VAT which was long overdue. while steadily improving profits. While sales for the group grew by 15. 1. . All the business units have performed well. 25. uncertainties in the implementation of the Value Added Tax system and ambiguities in the interpretation of rules and procedures associated with it have. the reward for suppliers who move in step with this trend is access to a bigger market. The emphasis in the decorative business has been on sales growth and market share. The decorative business in India.

His sense of professionalism. Ashwin C. To off-set the impact of rising costs. with focus on building scale in the Middle East and South East Asia. The process of integration of our international acquisitions continues and we are beginning to feel the beneficial impact arising out of it. Well read in history and law. International units will now be managed on a regional basis. We will continue to review our investments in other countries on an ongoing basis. whose demise in March this year ended a forty-six year long association with the Company. As always. Industrial coatings continue to be our fastest growing business: last year has seen yet another big stride with the business expanding by more than a third in size. Mr. A measure of our confidence in the emerging future is the investment that we are committing to new green field sites. The Directors’ Report speaks of the steps initiated in this direction. Accelerating pace of industrialisation and rising investments in infrastructural projects will only increase the demand for quality industrial coatings. by harnessing the combined strengths of the group. The task ahead is to improve profitability. Sales of the international business crossed the 100 million US Dollar mark during the year. over time.05 Every adversity brings with it an opportunity. fair play. I am optimistic on the outlook for the current year. The steps taken have helped reduce the pressure on margins and drive volume growth in the decorative business. annual report 2004-2005 . The time is now ripe to make such investments that will. Rajagopalachari brought to bear his immense knowledge of both to shape strategy. The objective is to place Asian Paints amongst the top three players in each market that it is present in. the employees for their dedication and other stakeholders for their continued support. Though input costs remain a cause for concern in the near term. Dovetailing our organisational capability to mesh in with this emerging future is a strategic imperative that your Company is focused on. they have also rendered us stronger and more competitive for the future. alter our manufacturing footprint and enhance our capability in many ways. Asian Paints will miss him. The units in Malta and Mauritius which did not fit in our strategy matrix were divested during the year. Yours sincerely. K. our philosophy has been to get more out of investments already made in our existing facilities in the country before looking at fresh expansion at new locations. Rajagopalachari. Choksi Asian Paints (India) Ltd. For many years now. I conclude by thanking my colleagues on the Board for their guidance. I would also like to make a special mention of Mr. equity and personal values inspired colleagues and associates. With regards. our effort will be to realize the potential that our people and the resources at our command represent and stay focused on growing shareholder value. economies were brought about in overhead expenses.

449 million (US $ 33 million) in 2003-04 to Rs. State of the art emulsion paint manufacturing facility commissioned at Sriperumbudur near Chennai.75 as on March 31.highlights Ø Net Sales and Operating Income of Asian Paints (India) Ltd. Net Profit increased by 17. SCIB Chemical.966 million (US $ 388 million*) in 2003-04 to Rs. Egypt has reported a profit for the first time after its acquisition in 2002.4% from Rs. The revenue of Berger International Limited has increased by 10. Return on Average Net Worth has increased from 29.9%.4% from Rs. 25.3% in 2003-04 to 31.4% from Rs. 1. 1.741 million (US $ 40 million) in 2004-05. 1. 2005 .179 million (US $ 507 million) in 2003-04 to Rs.415 million (US $ 444 million) in 2004-05. 16.4 % in 2004-05. grew by 14. Net Profit to shareholders after minority share grew by 20. 1. International business sales crossed US $ 100 million. 22. 43.2% from Rs. 19. The Board of Directors have recommended dividend of 95% for the year 2004-05 with a payout ratio of 60%.478 million (US $ 34 million) in 2003-04 to Rs.735 million (US $ 40 million) in 2004-05.605 million (US $ 585 million) in 2004-05. Ø Ø Ø *1US $ = Rs. Ø Ø Ø Ø Group : Ø Net Sales and Operating Income for the group grew by 15.

TAX & DEF. TAX DIVIDEND & DIV. annual report 2004-2005 .07 GROSS SALES & NET SALES PROFIT BEFORE TAX & PROFIT AFTER TAX NET WORTH & SHARE CAPITAL RETURN ON CAPITAL EMPLOYED & RETURN ON NET WORTH REVENUE TO EXCHEQUER DISTRIBUTION OF INCOME MATERIAL COST EMPLOYEE REMUNERATION OTHER EXPENSES INTEREST DEPRECIATION EXTRAORDINARY ITEM CORP. TAX RETAINED EARNINGS Asian Paints (India) Ltd.

000 KL per annum.00. This state-of-the-art plant. Sriperumbudur. The capacity will be raised to 1. erected in record time. . A rapid ramp-up of production is planned to keep up with the increased demand for emulsion paints. This is Asian Paints’ fifth paint plant in India. has been established to manufacture emulsion paints alone with an initial capacity of 30. near Chennai in the State of Tamil Nadu commenced production on January 20. It is located at SIPCOT (State Industrial Promotion Corporation of Tamil Nadu) Industrial Park. 2005.000 KL per annum making it a world scale facility.new capacity Asian Paints’ new paint plant at Sriperumbudur.

Himachal Pradesh (for powder coatings) with final capacities of 30.000 KL and 6. Pollution abatement. Capability to handle batch sizes upto 20 KL.09 The plant is presently equipped with:· Modern material handling facilities including storage of raw material in silos. Maharashtra (for industrial coatings) and at Baddi. Health and Safety (EHS) features of the highest standard. annual report 2004-2005 . The Company is also investing in greenfield manufacturing facilities in the areas of industrial coatings and powder coatings (through its subsidiary) to cater to the good growth expected in these segments. The plant is a Zero Discharge plant and has Environment. These are being set up at Taloja. The latest automated process control system. High speed packing lines.500 KL per annum. waste usage in a closed loop manufacturing system and advanced pollution treatment facilities. respectively. Asian Paints (India) Ltd. These facilities will enable the Company to implement ‘Right First Time’ and ‘Zero Defect’ concepts.

standardising them to leverage global knowledge and providing adequate controls.new strides In an attempt to provide a major thrust to the global vision of “Think Global. .an Enterprise Resource Planning (ERP) initiative which would involve all its overseas operations. Synergize Regional and Act Local”. Individuals drawn from various functions and working full-time with consultants have created a global template that has already been implemented at some of the units and implementation at the remaining units would be completed by the end of 2005. Asian Paints has embarked on one of its biggest international initiatives - the launch of ‘e-Strides’. This will involve benchmarking processes with industry best practices. ‘e-Strides’ will reassess the significance of the current business processes and will improve them in the context of the changing business scenarios.

Asian Paints (India) Ltd.’s plant in China A view of registered office of Berger International Ltd. Ltd. Singapore A view of Berger Paints Jamaica Ltd.’s plant. annual report 2004-2005 .11 A view of Berger Paints (Ningbo) Co..

product portfolio Interior Wall Finish Matt Tractor Emulsion Smooth Wall Finish Premium Emulsion Elastomeric Hi-Performance Exterior Paint Royale Luxury Emulsion Apcolite Premium Gloss Enamel PU Wood Finish Exterior .

annual report 2004-2005 .13 Interior Wall Paints Interior Wall Finish Lustre Tractor Acrylic Distemper Washable Tractor Synthetic Distemper Washable Exterior Wall Paints Utsav Distemper Elastomeric Hi-Performance Exterior Paint Elastomeric Hi-Performance Exterior Paint Apex textured Exterior Emulsion Utsav Acrylic Distemper Wood and Metal Paints Utsav Enamel Apcolite Premium Satin Enamel Gattu Synthetic Enamel Wood Finishes Touch Wood PU Wood Finish Interior Melamyne Asian Paints (India) Ltd.

opportunities Asian PPG Industries Limited. While Deltron is the premium brand. USA. which presently has two PPG brands. Aspa and Apca – the alkyd resin and nitrocellulose based refinish paints service the conventional end of this market. the OE (original equipment) and the refinish segment... the Company has emerged as the second largest automotive coatings supplier in the country. which gives eight different tones when viewed from different angles. . a joint venture between Asian Paints (India) Limited and PPG Industries Inc. the Company supplies coatings directly to automobile. Asian PPG Industries Limited also has the ‘Harlequin’ range from PPG. D e l t r o n a n d B i l u x . For the OE segment. has continuously outpaced industry growth for the last two years. Coatings for the automotive industry fall under two segments viz. The joint venture leverages strengths of both PPG Industries and Asian Paints and it is for this reason that in such a short time it has evolved into a leading automotive coating supplier in the country. two wheeler and tractor manufacturers at their manufacturing facilities. The refinish segment is distribution led and in many respects similar to the Asian Paints Decorative coatings business. In just eight years since inception. Bilux is the economy brand of the Company. At the high end is the polyurethane range.

these provide yet another opportunity to demonstrate its growing reputation as a pioneer of innovative products in a high growth market. annual report 2004-2005 . APICL has entered into a technology agreement in March. Other industrial product offerings include the Metacare range of industrial coatings servicing a range of industrial applications. one of the top ten powder coating companies in the world. 2004 with Canada based Protech Chemicals.15 The non-auto industrial coatings segment consists of the following: Ø Protective coatings Ø Road marking coatings Ø Floor coatings Ø General industrial coatings Ø Powder coatings To Asian Paints. a wholly owned subsidiary of Asian Paints (India) Limited (APIL) services the requirements of the powder coatings segment and the rest of the segments are serviced by APIL. Apcoflor range of floor coatings and hot melt thermoplastic road marking coatings. Protective coatings Floor coatings Road marking coatings Asian Paints (India) Ltd. Asian Paints Industrial Coatings Limited (APICL). APICL services the powder coatings business through its products under the two brands Apcoshield and Hawcoplast.

global presence JAMAICA BARBADOS TRINIDAD & TOBAGO CARIBBEAN .

Vanuatu China. annual report 2004-2005 . Malaysia. UAE Oman Egypt Operating Company Asian Paints and its subsidiaries Berger International and its subsidiaries Asian Paints and its subsidiaries Berger International and its subsidiaries Asian Paints and its subsidiaries SCIB Chemical Berger International and its subsidiaries Caribbean Barbados. has no operations in India Asian Paints (India) Ltd. Jamaica. Tonga. Myanmar. Nepal. Solomon Islands. Sri Lanka Bahrain. Fiji. Trinidad & Tobago Berger International Ltd. Singapore. Thailand India. Bangladesh. Samoa.17 EGYPT BAHRAIN UAE OMAN MIDDLE EAST INDIA NEPAL CHINA BANGLADESH MYANMAR THAILAND MALAYSIA SOUTH EAST ASIA SRI LANKA SINGAPORE SOLOMON ISLANDS SAMOA VANUATU AUSTRALIA FIJI TONGA SOUTH PACIFIC Regions South Pacific South East Asia South Asia MIddle East Countries Australia.

477 28 1.878 1.095   336 480 104 355 820 . in Millions) APIL 2004-2005 GROSS SALES 23.729 3.741 820 — 2.061 1.388 3. Goodwill Amortisation and Tax Less : Extraordinary item (EOI) Less : Goodwill Amortisation Profit Before Tax Less : Provision for Current and Deferred tax Profit After Tax Add/(Less): Prior period items Net Profit after prior period items Less : Minority Interest Attributable to shareholders of the Company Add : Balance brought forward from the previous year Add : Balance brought forward of Pentasia Investments Ltd.912 53 480 — 2.000 2003-2004 25.Final Tax on dividend Transfer to General Reserve Balance carried to Balance Sheet 2003-2004 20.735 820 — 2.379 68 — 2.416 941 1.738 (3) 1. Your Directors have pleasure in presenting the 59th Annual Report of the Company and the audited accounts for the financial year ended 31st March.311 836 1. on merger DISPOSABLE PROFIT That the Directors recommend for appropriation as under: Dividend .750 42 — 2.260 2.708 970 1.813 72 1.206   336 480 104 466 820 AP Group Consolidated 2004-2005 29.555   384 528 125 518 1.476 2 1.478 720 8 2.494 — 78 2.955 — 77 2. COMPANY PERFORMANCE FINANCIAL HIGHLIGHTS (Rs.561   384 528 130 520 1.675 108 614 2 2.735 — 1.254 28 476 — 2.478 — 1..235 152 628 39 2.853 3.directors’ report Dear Members.Interim .475 2 1. 2005.449 646 — 2.818 (5) 1.000 Operating Profit Less : Interest Less : Depreciation/Amortisation/Impairment Add : Profit/(Loss) from associate Profit Before EOI.

JOINT VENTURE WITH PPG INDUSTRIES. Profit & Loss Account. The Company has also increased the rate of depreciation of certain classes of fixed assets and the above has been dealt with in accordance with Accounting Standard (AS 6) . Justice & Company Affairs.50 per equity share declared for the previous year.97 million in 2004-2005 as compared to Rs. your Company made an assessment for any indication of impairment loss on fixed assets as at 1st April. 2004. 4. Your Directors recommend the payment of a final dividend of Rs. – ASIAN PPG INDUSTRIES LIMITED Asian PPG Industries Limited. it also paid a dividend of 10% for the financial year 2003-04. Ministry of Law. TECHNICAL INSTRUMENTS (INDIA) LIMITED MANUFACTURERS Your Company holds 100 per cent of the equity interest in Technical Instruments Manufacturers (India) Limited (TIM). Both sales and profits have seen good growth in the current year.. 8.6% equity in the Mauritian subsidiary to two existing shareholders Asian Paints (India) Ltd. Report of the Board of Directors and Report of the Auditors of Subsidiary Companies have not been attached to the Balance Sheet of the Company.50 per equity share as against Rs. of India. The final dividend on equity shares. The Company has adjusted an amount of Rs. reported a profit for the first time after its acquisition in 2002. The total dividend recommended for the year under review comes to Rs.99 million) and will be paid to those members whose names appear on the Register of Members on 27 June. INTERNATIONAL OPERATIONS During the year 2004. The name of the Company was subsequently changed to Surya Powder Coating Ltd. 601. 0. your Company has applied for approval from the Department of Company Affairs. a wholly owned subsidiary of the Company. a 50:50 joint venture between Asian Paints (India) Limited and PPG Industries. The Joint Venture Company has paid an interim dividend of 10 % for the financial year 2004-05 in March 2005. 9. 163. INC. Pursuant to Accounting Standard (AS 21) issued by the Institute of Chartered Accountants of India. TIM owns the building which houses your Company’s corporate office.A. exempting compliance with the provisions of Section 212(8) of the Companies Act. 5. if approved. Revenues of BIL grew by 10. Egypt. a statement of the summarised financials of all the subsidiaries is attached along with the consolidated financial statements. APICL acquired land in Baddi near Chandigarh.45 million less Deferred Tax Credit – Rs. 58 million) in 2004 as against a profit of S $ 2. In terms of approval granted by the Central Government under Section 212(8) of the Companies Act. 454. would amount to Rs. DIVIDEND The Company declared an interim dividend of Rs.42 million (Gross – Rs.95 million (equivalent to Rs. ASIAN PAINTS INDUSTRIAL COATINGS LIMITED Asian Paints Industrial Coatings Limited (APICL).2 million (equivalent to Rs. 4956 million and crossed US $100 million. Details of the provision for impairment loss on fixed assets and increase in rate of depreciation are stated in Note 19 of Schedule `M’-B. copies of the Balance Sheet. Lower profits are mainly due to additional provisions for inventories and receivables made during the year in order to align with the group accounting policies.50 per equity share. being the impairment loss pertaining to prior periods. Govt.9% to Singapore $ 122. 2004. 9. Management Discussion and Analysis annexed to this Report deals with APICL under the heading – Industrial Paints. It has no other income except the rent it receives from your Company. BIL reported a profit of S $ 2. 1956. During the year.33 million (equivalent to Rs. 3244 million).Depreciation Accounting based on management’s assesment of the useful lives of such assets. both direct and indirect. Pursuant to the approval. Your Company divested its total investment of 89.7% to touch Rs. reported Profit Before Tax of Rs.55 million (including corporate dividend tax of Rs. the Company has received approval from the government.. for adding to its capacity in powder coatings to cater to an increase in demand.E. being Notes on Balance Sheet and Profit and Loss Account. Another subsidiary of your Company. Subsequent to the date of this report. annual report 2004-2005 . Pursuant to Accounting Standard (AS 28) – Impairment of Assets issued by the Institute of Chartered Accountants of India.46 million in 2003-2004. sales of international operations grew by 16. 1956.00 per equity share in October.03 million) against the opening balance of revenue reserves. The Company will make available these documents/details upon request by any member of the Company interested in obtaining the same. CONSOLIDATED ACCOUNTS In respect of subsidiaries in India and abroad. In May 2004.19 The detailed analysis on the performance of the Company is discussed in Management Discussion and Analysis. Consolidated Financial Statements presented by the Company include the financial information of all its subsidiaries. 73. 4. 78 million) in 2003. at an outgo of Rs.90 million by acquiring 100% equity of Surya Gel Caps Ltd. 2005. 291. SCIB Chemical S. Berger International Limited (BIL) a subsidiary of your Company and listed on the Singapore Stock Exchange performed satisfactorily during the year. USA saw yet another year of good performance.

2005 well in time and within the budgeted cost. Kasna plant which had received Five-Star rating by the British Safety Council last year was also awarded the “Sword of Honor” in 2004. The Management Discussion and Analysis has dealt with the International Business in detail.. The Company’s good performance in the area of safety has continued this year as well.78 million from 55 depositors pertains to deposits that have not been claimed or for which disposal instructions have not been received by the Company.(equivalent to Rs. The Company’s four paint plants and the two chemical plants have the ISO 14001 certification for environment management standards. SAFETY AND ENVIRONMENT Your Company started implementing the British Safety Council Standards at all its paint manufacturing locations about three years ago.22 million at the end of the year.000 KL per annum of industrial paints. 81. are given as Annexure to this report in Form A and B respectively. . FIXED DEPOSITS Fixed deposits from public and shareholders stood at Rs.76 million ). A sum of Rs. 0. INDUSTRIAL COATINGS PLANT Given the sharp growth in sales over the past few years and the forecast for the future.55 million has been availed during the year and with this. PAINT PLANT In the last annual report. A certificate from the Auditors of the Company regarding compliance with the conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report. A sum of Rs. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION Particulars in respect of conservation of energy and technology absorption by the Company as per Section 217(1) (e) of the Companies Act. no deposits have been repaid. The Management Discussion and Analysis and the report on Corporate Governance are included as a part of the Directors’ Report. 5. The Company’s new paint plant at Sriperumbudur is equipped with state of the art safety and environmental infrastructure. Since close of the year. The balance investment of Rs.76 million is booked to the Profit and Loss Account of your Company. 2005 is Rs. 53. CORPORATE GOVERNANCE The Company continues to comply with the requirements of the Listing Agreement with the Stock Exchanges where the Company’s shares are listed.60 million. plant and machinery and liabilities under legislative enactments are adequately insured.00. INSURANCE All the insurable interests of the Company including inventories. the total amount of deferment availed up to 31 March. This facility will help in meeting the specific requirements of industrial customers and further enhance servicing capability of your Company. it was mentioned that your Company is setting up a paint plant with an ultimate capacity of 100.000 KL per annum. for which eligibility certificate has been granted for Rs. 254. A sum of Rs. 106. 3.31 million has been availed during the year and with this. will have an initial capacity to produce 14.71 million. 363. 2005 is Rs. All four paint plants of the Company have now been awarded the “Sword of Honor” in their first attempt. The Plant which will be set up in two phases. Loss of profit risk for financial year 2004-2005 was self insured. a 100% subsidiary of your Company has provided for a permanent diminution in the value of its investment in Sri Lanka due to erosion of net worth.000 KL per annum in phases at Sriperumbudur near Chennai with an initial capacity of 30. 407 million. as an organisation has always been making a proactive effort on environmental management and views conservation of resources as a driver of efficiency and productivity. 0. the total amount of deferment availed up to 31 March. 1956. The Company also continues to avail of sales tax deferment benefit for the expanded capacity at Kasna for which eligibility certificate for Rs. 43 million (after adjusting a sum of Rs. Asian Paints (International) Ltd. buildings. SALES TAX DEFERMENT BENEFIT The Company continues to avail of sales tax benefit at Patancheru plant for the expanded capacity under Target 2000 scheme.000/. FOREIGN EXCHANGE EARNINGS & OUTGO Details of expenditure and earnings in foreign currencies are given in Notes B -12 and B -13 respectively of Schedule ‘M’ to the financial statements.of the subsidiary at a total consideration of Mauritius Rs. Maharashtra. Your Company. 68 million provided last year for permanent diminution) net of sale consideration of Rs.30 million has been received. Your Directors are happy to inform you that the plant commenced production on 20th January. BIL has provided for a permanent diminution in the value of its investments in Malaysia and Myanmar due to accumulated losses. 0. your Company has decided to set up a greenfield and dedicated industrial coatings manufacturing facility at Taloja.

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PERSONNEL Industrial relations during the period were cordial and peaceful. Negotiations for the three year settlement with the union at Mumbai Plant are in progress. Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, forms part of this report. CHANGE OF NAME The overseas acquisitions have put the Company on the global map. The Company, through its subsidiaries, is competing in highly competitive markets dominated by well known international brands. The Company’s strength in logistics and distribution networking is ably supported by right technology and prudent financial management practices. The Company’s growth is not confined solely to the boundaries of Indian markets. The Company has drawn up ambitious plans for attaining and sustaining leadership status in international markets in which it operates and in the light of this, it is appropriate to change the name of the Company to ‘Asian Paints Limited’. The process of passing a Special Resolution under Section 21 of the Companies Act, 1956 by way of postal ballot under Section 192A of the Companies Act, 1956, seeking shareholders’ consent for change of name of the Company has been initiated. DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors confirm that : • In the preparation of the annual accounts, applicable accounting standards have been followed along with proper explanations relating to material departures. The accounting policies have been selected and applied consistently and the judgements and estimates made, are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. The annual accounts have been prepared on a going concern basis. Shri Manubhai G. Patel resigned from the Directorship with effect from 25 March, 2005 due to personal reasons and the Board accepted his resignation with regret. The Board places on record its appreciation of the invaluable services rendered by late Shri K. Rajagopalachari and Shri Manubhai G. Patel. Ms. Tarjani Vakil, Shri Dipankar Basu, and Shri Deepak Satwalekar retire by rotation at the conclusion of this Annual General Meeting and being eligible, offer themselves for reappointment. Appropriate resolutions for their appointment are being placed before you for your approval at the forthcoming Annual General Meeting. The Board of Directors at its meeting held on 11th May, 2005 have revised the commission payable to Shri Ashwin Choksi, Chairman, Shri Ashwin Dani, Vice Chairman and Managing Director and Shri Abhay Vakil, Managing Director with effect from 1st April, 2005. The necessary resolutions for the revision in commission are being placed before you for your approval at the forthcoming Annual General Meeting. COMMITTEES OF THE BOARD The Audit Committee, the Remuneration Committee, the Investor Grievance Committee and the Share Transfer Committee have been reconstituted during the year. The Corporate Governance Section appended to this report contains the necessary details of the aforementioned committees. AUDITORS The Company’s Auditors, M/s. Shah & Co., Chartered Accountants, retire and are eligible for reappointment. Your Directors commend their appointment for the ensuing year. COST AUDITOR The Company has received the approval of the Central Government for appointment of Shri Damji Keshavji Visariya as Cost Auditor to conduct the audit for the financial year 2004-2005. APPRECIATION Your Directors wish to place on record their appreciation of the employees at all levels for their dedicated service and contribution to the growth and prosperity of the Company. Your Directors also wish to place on record their appreciation of banks and other financial institutions, shareholders, dealers and consumers for their wholehearted support. FOR AND ON BEHALF OF THE BOARD

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DIRECTORS Your Directors report with deep regret the sad demise of Shri K. Rajagopalachari, Director of the Company on 14 March, 2005. He will be remembered for his rich contribution to the Company. ASHWIN C.CHOKSI CHAIRMAN

Mumbai: 11 May 2005.

Asian Paints (India) Ltd.

annual report 2004-2005

management discussion & analysis
From all indications, the Indian Economy did fairly well during 2004-05. While agriculture declined marginally by 2%, industry and services grew at an estimated 7.1% and 8.9% respectively. Accordingly, India is expected to have had a 6.9 % real GDP growth in 2004-05. This is well below the 8.0% recorded in the previous year, largely due to the poor performance of the agricultural sector. Even so, India was among the fastest growing large economies in the world. Impressive as the growth may be, in comparison to many other countries, the economy continues to perform below its potential due to the halting pace of reforms and slow progress on infrastructure development. A good example is the introduction of Value Added Tax (VAT); talked about for many years, it was finally introduced in only some states and that too, with inadequate preparation. However, even if the economy performs below potential, sustained growth will lead to greater business confidence. 2004-05 was different from the recent past, in that inflation and shortage of materials were significant. Crude oil was the main cause. Prices of crude oil were extremely volatile during the year. Fuelled by the price of crude and its derivatives, prices of many raw materials and packing materials used by your Company witnessed an unanticipated and large surge. Given these circumstances, Asian Paints had a fairly good year. Net sales and operating income of the Company have grown satisfactorily. We were able to maintain excellent control on costs and have succeeded in growing post-tax profit of the standalone entity by 17.4%. We give below a snapshot of the salient features of the Company’s performance during 2004-05 as a stand alone entity as well as the consolidated group. ASIAN PAINTS (INDIA) LIMITED: STAND ALONE • Net Sales and Operating Income have increased by 14.4% from Rs. 16,966 million in 2003-04 to Rs. 19,415 million in 2004-05. Revenue (net of discounts and excise) from the paint segment has grown by 14.2% from Rs. 16,435 million in 2003-04 to Rs. 18,765 million in 2004-05. Profit Before Tax and Extraordinary item has increased by 15.6% from Rs. 2,379 million in 2003-04 to Rs. 2,750 million in 2004-05. Profit After Tax (PAT) has increased by 17.4% from Rs. 1,478 million in 2003-04 to Rs. 1,735 million in 2004-05. Return on Capital Employed was 37.7% in 2003-04 and has increased to 41.5% in 2004-05. Return on Net Worth was 29.3% in 2003-04 and has increased to 31.4% in 2004-05. Basic and diluted Earnings Per Share (EPS) have increased from Rs. 16.12 in 2003-04 to Rs. 18.53 in 2004-05. PAINTS The Company’s paints business in India consists of Decorative and Industrial Coatings. In 2004-05, these accounted for 78% of the group sales. We estimate that the local market for all paints including cement paints and other powder products manufactured by all companies big and small would have been around Rs. 82 billion in 2004-05. Chart B shows APIL paint sales over the last five years. Growth of the decorative paints segment has been lower than the growth of the Industrial segment. The growth in Industrial products is led by the growth in the Automotive Original Equipment sector and in powder coatings. ASIAN PAINTS (INDIA) LIMITED GROUP : CONSOLIDATED (AP GROUP) • Net Sales and Operating Income for the group has increased by 15.4% from Rs. 22,179 million in 2003-04 to Rs. 25,605 million in 2004-05. Profit Before Tax and amortization of goodwill for the group has increased by 18.5% from Rs. 2,494 million in 2003-04 to Rs. 2,955 million in 2004-05. Profit attributable to shareholders (after tax and minority interest) has increased by 20.2% from Rs. 1,449 million in 2003-04 to Rs. 1,741 million in 2004-05. Return on Capital Employed was 31.4% in 2003-04 and has increased to 34.6% in 2004-05. Return on Net Worth was 28.8% in 2003-04 and has increased to 31.7% in 2004-05. Basic and diluted Earnings Per Share (EPS) have increased from Rs. 15.11 in 2003-04 to Rs. 18.15 in 2004-05.
Chart A : Share of Group Sales

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Chart B : APIL Paint Sales (Gross)

After a sluggish start to the year, we had an excellent season period from August to November. This also coincided with the period of shortages which was exacerbated by the transporters’ strike at the end of August. Your Company was able to cope with the situation, thanks to its very capable and flexible Supply Chain. As stated in the Annual Report for 2003-04, we had resolved to be aggressive so as not to concede space to competition and to ensure that we got good growth in the large and important segments of Distemper and Enamels. Thus, the price increases that became necessary due to inflation were postponed to post Diwali and effected from the 1st of December, 2004. Due to these factors, growth during 2004-05 was volatile quarter on quarter. Your Company is the leader in Interior wall finishes and has an entire range of products for this segment. During 2004-05, we extended Utsav Acrylic Distemper throughout the country as the economy Distemper, aggressively pushed Tractor Emulsion to upgrade the market, introduced extremely attractive dark shades in the high priced emulsion product range and stepped up marketing activities. As a result, we had a robust growth in the Distemper segment after a gap of some years and excellent growth in the emulsion category as a whole. While we will continue to face competition from lower priced products from large companies and from a large number of regional players in the Distemper category which we dominate, we believe that the strategy shift undertaken is in the right direction. The fastest growing segment in Decorative products is undoubtedly Exterior Wall Finishes. Your Company has been the principal driver of the growth in this segment ever since it launched its two winning products, Apex and Ace. Apart from products of very good quality, aggressive marketing activity to improve consumer awareness for usage of quality emulsion paints on the exterior surfaces has yielded excellent results. Your Company has continued to expand its portfolio of Exterior products. Apex Ultima, a premium product was launched with a novel warranty scheme in Kerala. This product along with warranty is being extended to the rest of the country. Ace Supreme, a high-end version of Ace, has been introduced very recently in select markets. Exterior Wall finishes performed exceedingly well during the year. With a full range of these products, we were able to improve upon our already strong position in the market.

DECORATIVE PAINTS Decorative paints accounts for over 75% of the overall paint market in India. In this segment, your Company has been a leader for almost four decades. Decorative paints include Interior and Exterior Wall finishes, Enamels, Wood Finishes and ancillary products such as Primers, Putty etc. Decorative paint sale in India accounts for about 70% of the entire group’s sales in 2004-05. Early estimates place the overall Decorative paints market growth including the small and medium scale segment in India at about 11-12% in volume and marginally higher in value. Market conditions were, on the whole, good. There was robust demand in most parts of the country, especially during the season period around the festival ‘Diwali’. The off-take during the fourth quarter was affected due to the announcement of the introduction of VAT from 1st April, 2005. As the rules were unclear regarding credit for tax on goods purchased prior to 1st April and there was to be a drop in effective tax in many parts of the country, dealers reduced their off-take resulting in higher inventory as on 31st March, 2005. The reduction in tax rate was as high as 5.9 % in Karnataka, 4.75% in Kerala and 3.3% in Maharashtra. The slowdown in the last quarter would have impacted all trade oriented sellers. However, the introduction of VAT is expected to be beneficial in the long run for the economy and your Company expects that once all states implement the new system, which is clear and uniform and the trade gets used to VAT, the benefits will flow in.

Asian Paints (India) Ltd.

annual report 2004-2005

signboards and the like. our strategies need to be continuously fine-tuned so that we remain agile and focused. floor coatings and general industrial liquid paints. an economy product.. As reported last year. Asian Paints Home Solutions is a unique and complete paint solution for customers. This will be expanded in phases to 100. contract manufacturers. the wholly owned subsidiary APICL services the powder coatings segment. Apart from petroleum derivatives. which has been growing slower than Decorative paints as a whole for some years now. Thus. The Company’s management believes that robust growth is of prime importance and while we possess strength in most segments of the market. The effort here is to provide service to individual household consumers and the company takes particular care to provide high quality of service. Aggressive marketing and pricing policies coupled with extension of Utsav Enamel. Due to the sharp rise in the price of crude and its derivatives. Our supply chain has focused on several areas.000 KL per annum. This is because it is being replaced by other materials on hoardings. The facilities at the Sriperumbudur Plant are contemporary by world standards and will enable extremely rapid ramp up of capacity. we have succeeded in postponing capital expenditure for several years. . We today have close to 5500 Colour Worlds across the country and Colour World dealers account for over two-thirds of the Company’s total Decorative sales. SUPPLY CHAIN Your Company has been justifiably proud of its supply chain which uses contemporary technologies to integrate its plants. regional distribution centres and branches. The “right first time” capability that was aimed for in the plant has been fully secured. prices of many raw materials and packing materials witnessed an upward swing. The integrated supply chain responded effectively and with supply chain management tools providing the ability to make rapid changes. The company has successfully secured economies of scale not only in the cost of equipment but also in maintenance charges so that dealers find it more and more attractive to install Colour World in their shops.000 KL per annum.000 KL per annum. enabled us to grow well in the category. road markings.The enamel segment is by far the largest segment.. we have received permission to raise production at Kasna to 80. at 5500 installations across the country has given us great strength. which also impacted service levels to a small extent. caters to the automotive coating segments. APIL services the remaining non-auto industrial coating segments viz. INDUSTRIAL COATINGS Industrial Coatings are classified into automotive and non-automotive industrial paints. This first phase has a capacity of 30. near Chennai. Your Company’s Colour World initiative has enabled us to bring to the consumer a very large range of shades in several products. with only modest capital expenditure we now have inhouse production capacity of 270. Inflation was accompanied by shortages in several materials. The availability of a range of products from distempers to high price emulsions in a very large number of shades.000 KL per annum plus the new capacity at Sriperumbudur. the prices of titanium dioxide also went up due to the gap between the supply and demand widening due to robust growth in many world markets. these contribute to around 8% of the group’s sales in 2004-05. its subsidiary company Asian Paints Industrial Coatings Limited (APICL) and the joint venture Asian PPG Industries Ltd. your Company undertook setting up of a new plant at Sriperumbudur. It has been extended to Ahmedabad and Pune during the course of 2004-05. including new uniquely formulated dark shades. We believe that this service adds to the strength of the Asian Paints brand. Together. protective coatings. Construction began in March 2004 and was completed in record time with production commencing in January 2005. Service is measured objectively by a professional agency and we track customer satisfaction every month. service levels could be maintained. Penetration has increased significantly with the addition of 1200 Colour Worlds during 2004-05. This plant will manufacture only emulsion paints and is expected to help us continue to grow rapidly in this segment. This supply chain was severely tested during the year that went by when there was a transport strike and shortage of materials just as the season was getting underway. This market is catered to by three entities: the parent Company Asian Paints (India) Limited (APIL). While Asian PPG Industries Ltd. This was particularly acute during the September – November period. During the year. By sweating existing assets.

Besides the impact of increased volumes resulting from the growth of the automobile industry. The group’s total sales of industrial coatings in India grew by 35%. was also able to increase its share of the market by offering new and improved products and by providing enhanced value to its customers. which have grown by 50% and 60%. been successful in commercialising a number of products which constitute the bulk of the range presently in use for the Indian floor coating market. through in-house R&D.. white good manufacturers registering good growth and the focus on enhancing the road network in the country. Another segment in which we plan to grow aggressively during the next year is the floor coatings segment. the 50:50 joint venture between Asian Paints and PPG Industries. 1. While we are the second largest player in protective coatings in the country. one of the top ten powder coating companies in the world. saw yet another year of vigorous growth.038 million in 2004-05.. INDUSTRIAL COATINGS – APIL The industrial coatings market where APIL operates is estimated to have grown by around 15% during the year.. we have also emerged as the second largest player in road marking paint in just a few years of entering this segment. The plant will be set up in two phases to have a final capacity of 30. With the automobile industry continuing on its growth trajectory. With the demand for Powder Coatings expected to grow at a healthy pace. the Company has decided to build a second manufacturing facility for Powder Coatings at Baddi in Himachal Pradesh. ASIAN PPG INDUSTRIES LIMITED Asian PPG Industries Limited. APICL has a technology collaboration with Canada based Protech Chemicals Ltd. the Company’s wholly owned subsidiary which services the requirements of powder coating customers in the country registered an impressive net sales growth of 23%. APIL industrial coatings has registered a value growth of 48%. The venture benefitted from the excellent performance of the automobile industry during the year. Maharashtra dedicated exclusively for Industrial Coatings. The combination of inputs from Protech and in-house R&D efforts will enable APICL to provide customers with state of the art technology products for existing and new applications. ASIAN PAINTS INDUSTRIAL COATINGS LIMITED (APICL) APICL. The first phase is expected to be commissioned in the last quarter of financial year 2005-06. in-house R&D efforts at APICL have continued and efforts to enter into specific large OE accounts have borne fruit. Asian Paints (India) Ltd. 2. *includes 100% sales of Asian PPG Industries Ltd. The new facility will have a capacity of 6500 MT and will be set up in two phases. respectively. The process of technology absorption is well underway and several products based on Protech technology have been developed at APICL. We have. the Company’s overall performance in industrial coatings has been commendable. your Company has decided to invest in a greenfield manufacturing facility at Taloja.570 million in 2003-04 to Rs. Asian PPG Industries Ltd.000 KL per annum. annual report 2004-2005 . Given below is the detailed performance of industrial coatings for 2004-05. Simultaneously. Trials for commercialisation of these products have commenced. due to strong growth in the protective coatings and road marking segments. during the year.25 Given the extremely good sales growth witnessed by the Company in Chart C :Total Sales of Industrial Paints* the last few years and continued buoyancy expected in the industrial coatings segment. Net sales of Asian PPG Industries Ltd. increased by 30% from Rs.

In November 2004.2% stake in its subsidiary. 2. continuing efforts by customers to cut costs limited the scope for improved price realisation. Berger Paints (Malta) Limited. Asian Paints (Mauritius) Limited to local shareholders. These agreements are fee based.3 million liters and the revenue from paint sales has increased by 12. Aspa. the focus of the International Business Unit has been on increasing the top line and strengthening its presence in various markets through initiatives such as installation of dealer tinting systems. the software was implemented at the subsidiary in Bahrain and subsequently in four other subsidiaries. the volume of paint sold has increased by 16. the alkyd refinish product and Bilux. We will continue to manage this business for value. 753 million in 2004-05. These two chemicals manufactured at Ankleshwar in Gujarat and Cuddalore in Tamil Nadu respectively were set up as backward integration initiatives in the 90s and are not seen as growth drivers for the Company. SCIB Chemical’s revenue has grown by 51% percent from Rs. SCIB Chemical S. OTHERS APIL also has chemicals businesses consisting of phthalic anhydride and pentaerythritol. mainly driven by higher price realisation in the phthalic anhydride business. 3.A.3% to Rs. market research to enable fine tuning of marketing strategies. INTERNATIONAL BUSINESS UNIT During the year under review. The strategy has been to gain market share and minimise upward revision in selling prices. introducing technically advanced products and by improving the product mix. Today. The chemicals business fared well during the year registering growth of 18% in external sales from Rs. 637 million in 2003-04 to Rs.6%. The Company was able to improve market share in both the auto OE and the auto refinish segments. Interest .5% to 65.9% from Rs. launch of new products. 4.6% stake in its Mauritius based subsidiary. Simultaneously. Berger International Limited. in which your company has a controlling stake. The company decided to exit Mauritius as the paint market has not been growing for the past few years and the subsidiary has been making losses for several years.INTERNATIONAL BUSINESS During the year under review. The revenue of Berger International Limited has increased by 10. The entire chemical business is not seen as core to the company’s growth and it’s percentage contribution to the overall sales of the group is on the decline. The latter is not a subsidiary. Adjusted for the exchange rate impact. The year saw a sharp rise in prices of raw materials resulting from the twin impact of rising crude prices and increase in world-wide demand. the value growth would have been 15. advertising and promotional activities and improved service levels. 320 million in 2003-04 to Rs. timely and accurate information that would facilitate better and faster decision making as well as improve controls. Material prices have risen sharply but the impact of higher material prices has been partly neutralised by improved efficiencies in both product mix and control of overheads.926 million in 2003-04 to Rs.. an associate company and Berger Paints (Pakistan) Limited. a licensing arrangement has been entered into with the Company. has entered into technical support arrangements with Dutch Boy Philippines Inc.A part of the increase in turnover has come from the improved performance of Asian PPG’s refinish business. During the year. Subsequent to this divestment. An initiative to implement Microsoft Navision. This posed a serious challenge to the ability of coating suppliers to sustain margins and manage earnings growth. The Company decided to exit operations from the country as there was no strategic fit. 484 million in 2004-05.648 million. approximately half of APIL’s chemical production is consumed in-house while the remaining is sold in the open market. Group policies in respect of general provisioning for stock and debtors have been implemented in stages over the last two financial years. Asian PPG has performed creditably in this area through aggressive cost management. FINANCIAL PERFORMANCE . Egypt has reported a profit for the first time after its acquisition in 2002.244 million in 2004-05. an Enterprise Resource Planning (ERP) software has been undertaken across all its overseas subsidiaries. The profitability of the chemicals business also improved significantly by 145%. The solution is expected to provide consistent. the company divested its 84. its second tier PU refinish system have performed very well. Your Company has also divested its 89.E. The implementation of the software at the other overseas subsidiaries will be completed in the next financial year.

6% to Rs. The subsidiaries in Egypt. perform well. Asian Paints (India) Ltd. SOUTH PACIFIC REGION The business unit operates in Fiji. Bangladesh and Sri Lanka..8 million liters. SOUTH ASIA REGION The business unit. The volume of paint sold in the region has increased by 22. Solomon Island. The volume of paint sold in the region decreased by 3. 1. Losses for the year were lower in both Sri Lanka and Bangladesh. in their first full year of performance post acquisition by Asian Paints (India) Ltd. the volume of paint sold in the region has increased by 5. all the subsidiaries in the region recorded improved sales and profit performance. The subsidiary in Nepal performed well registering impressive sales growth but profits were lower due to provisioning for stock and debtors. 618 million. The subsidiary in Oman has reported profits for the first time since its inception.9% to 4. South East Asia. Samoa and Australia. Trinidad & Tobago and Barbados. 400 million. Barring Australia. The revenue from paint sales has increased by 6.9% to Rs. The subsidiary in Egypt has improved its presence in the retail segment by launching new products and has made profits for the first time since it was taken over in 2002. The business unit also has a sales office in Hong Kong.4 million liters.7 million liters. annual report 2004-2005 . dealer tinting systems were launched in all the three subsidiaries. CARIBBEAN REGION The business unit has operations in Jamaica. Taubmans Paints (Fiji) Limited and Samoa Paints Limited.7% to 8.5 million liters. During the year. Malaysia. The volume of paint sold in the region increased by 10. MIDDLE EAST REGION The business unit has operations in Egypt.5 million liters.8% to Rs.9% to 35. Malaysia and Myanmar units are a cause for concern. Tonga. United Arab Emirates (UAE) and Oman. the group now operates in five regions across the world i. 1565 million. The unit in Thailand recorded excellent sales growth. The revenue from paint sales has increased by 1. Middle East and the Caribbean. recorded improved performance.8% to 5. The revenue from paint sales has increased by 8. after the disposal of the subsidiary in Mauritius in March 2005.342 million. Chart D shows the percentage sales contribution of each region to overall international operations for 2004-05. The revenue from paint sales has increased by 24.9 % to 10. The revenue has increased by 24. Bahrain.e.27 cost is lower due to a combination of finer rates and swapping of high cost borrowings with cheaper alternatives. Vanuatu. 699 million. Bahrain and Oman have recorded impressive revenue and profit growth which helped the region SOUTH EAST ASIA REGION The business unit operates in China.3% to Rs. The subsidiary in Sri Lanka reported a loss due to higher interest cost and provisioning for doubtful debts. The subsidiary in UAE has recorded good revenue growth due to increased sales to the domestic decorative projects segment and exports to the Commonwealth of Independent States (CIS) Chart D: Regionwise share of International Business sales markets. The subsidiary in Bahrain has taken steps to increase its presence in the Saudi Arabian market and augment its manufacturing capacity to meet increasing demand. South Pacific. Singapore and Thailand.8% to Rs. Higher material cost and additional provisioning made by the subsidiary in Jamaica towards stock obsolescence has impacted profits of the region. Myanmar. The subsidiaries in Thailand and Singapore recorded satisfactory profit performance.. During the year. The volume of paint sold in the region (excluding India) increased by 24. has operations in Nepal. With the exit of operations in Mauritius and Malta. South Asia. The highlight of the year was the improved sales performance by Barbados and Trinidad & Tobago.

The plant has a state of the art effluent treatment system. level 93. • Resource Conservation. Due to this continued focus. those that help develop leaders from within and others that help employees upgrade their skills or acquire new skills.1 4. A large part of the training is aligned to support initiatives of the business units. we have restructured our training programmes.4 1. All manufacturing streams now have closed loop recycle schemes in place to minimize waste generation. several safety features have been incorporated in the design of the plant. some of which were set up as greenfield units by Asian Paints while some others were recently added through the acquisition process. HEALTH AND ENVIRONMENT A. depends on introduction of Severity Rate Man-days lost due to reportable lost time injury per million man-hours worked Ye a r 2000 2001 2002 2003 2004 Co. is positive. Training activity is divided in three areas : the ones that support the initiatives of the business units. Kasna plant which received the Five-Star rating by the British Safety Council last year was also awarded the “Sword of Honor” in this year.6 57. The International Business Unit [IBU] represents a group of individual units. a reverse osmosis plant and a multiple effect evaporator that allows the plant to recycle more than 99% of the effluent back into the process. Implementation of waste recycle schemes have enabled all paint plants achieve ‘zero industrial discharge’ capability. SAFETY AT APIL PAINT PLANTS Your Company continues to invest in the area of safety. The reduction in the time wasted due to accidents is given in the tables here in below : Frequency Rate Number of reportable lost time injury per million man-hours worked B. Raw material prices are expected to be buoyant in the next year and efforts will continue to reduce the impact of increasing raw material prices through cost optimisation in all areas. level 3. The outlook for international operations for the next financial year.5 Ye a r 2000 2001 2002 2003 2004 Co. the company has been able to reduce water consumption significantly. All the four paint plants in India have now been awarded with the “Sword of Honor” in their first attempt. Training man-days have increased to over five per executive. where each unit has its own operating systems. The success of the group. HUMAN RESOURCES To meet the challenges of a constantly evolving environment. The organization has been able to reduce waste generation by implementing pneumatic conveying systems for powder raw materials. . barring unforeseen developments.OUTLOOK FOR INTERNATIONAL BUSINESS While the business unit has performed well in terms of revenue growth. ENVIRONMENT INITIATIVES Asian Paints has always taken a proactive stance on environmental management and the Company views conservation of resources as a driver of efficiency and productivity.8 1. the sharp increase in raw material prices has impacted margins and profitability in the current year. The Company follows a two-pronged approach: • ”Waste Minimisation” through waste reduction at source and recycle of waste. SAFETY. employing superior cleaning systems and carrying out mass balance audits for waste minimization. The Company’s four paint plants and the two chemical plants have the ISO 14001 certification for environment management standards. The plant is designed for ‘zero-discharge’ of industrial effluent.4 1. With the help of rain water harvesting schemes implemented across all the plants and their colonies and the implementation of drip irrigation systems and ground water recharging schemes.7 The new paint plant at Sriperumbudur is equipped with state of the art safety and environment infrastructure.6 91.0 45. processes and cultural identity.4 46. Energy audits have been done at all the plants to save energy. Based on the British Safety Council guidelines.

the Company continued operating mobile medicare units (MMU) around Patancheru (Andhra Pradesh) and Kasna (UP) plants collaborating with HelpAge India. During the year. Employees of the Company also contributed Rs. especially Jamaica have supported various educational. the Company has been involved in supporting various schools around its plants including the setting up of the ‘Gattu’ school at Ankleshwar which provides education to around 2. CORPORATE SOCIAL RESPONSIBILITY Asian Paints approaches Corporate Social Responsibility (CSR) from the perspective of being a responsible corporate citizen. 3. The subsidiaries in the Caribbean. Several improvements have been made in our backend infrastructure to improve our support for new applications and take advantage of the improved communication and telecom infrastructure to leverage information technology. In the last few years. our Bhandup plant pursued the objective of increasing awareness about rain water harvesting. As mentioned elsewhere in this report. our R&D efforts have been focused on developing new exterior finishes. The year under review has been a year of consolidation as also expanding the scope to better serve the needs of our growing international business. such as a painting tool. The Company organised seminars free of cost to bring about awareness and influence other organisations to adopt this concept. an NGO. Before taking the concept to the masses. health care. a common ERP solution is being implemented at all our overseas units. One major initiative run in Jamaica is the adoption of the Rivertown Meadows Early Childhood Education Centre which has around 120 students aged 3-6 years. The Company also took the initiative of treating people with cataract and successfully got around 460 patients operated at recognised eye-hospitals. In months to come. increased transparency in transaction reporting and greater speed and efficiency in decision making from the revamp of the Information Technology solutions. In Mumbai. In the area of health care. we first implemented the rain water harvesting scheme in all our plants and their residential colonies. This is being done so that our overseas units have the ability to speedily adapt to changes in the environment and deliver value to our customers. particularly the Performance Management system and a common value system. Community initiatives have also been undertaken in different countries by the company’s overseas subsidiaries. web store and decor related information.5 million to the Prime Minister’s and Chief Minister’s Relief Fund to aid the victims of the Tsunami tragedy. Contributions have been made by the group to the International Red Cross to help victims affected by the Tsunami tragedy. The Performance Management system was upgraded during the year and a variable pay plan introduced to bring in greater performance orientation. distempers and wood finishes. it was felt necessary to have a modern and contemporary web presence for corporate and customer information and transactions. RESEARCH & DEVELOPMENT Research and Development (R&D) plays an important role in developing new products and reducing cost by re-engineering formulations. we will be rolling out new additions. annual report 2004-2005 . In order to reflect the increase in our international presence as well as to provide an integrated view from the outside to the Asian Paints group. which will be a unique example of a commercial building implementing such a project.500 students from various strata of society. cultural and sports activities for the development of youth. R&D operates in tandem with the Company’s long term strategy and demands of the market place.2 million out of their salary towards this purpose. Asian Paints (India) Ltd. we unveiled the new web presence. 1. The Company has designed a rain water harvesting scheme for its corporate office in Mumbai.29 common systems. economy emulsions. A few months back. The Company has identified projects across all its manufacturing locations in the country primarily in the areas of education. Focus has been on improving robustness and utilization whilst maximizing the benefit from information technology solutions. There has been a continued effort to take up initiatives in various quarters and ensure sufficient resources for the sustenance and continuity of the same. Another part of the company’s CSR initiative is the harvesting of rain water. INFORMATION TECHNOLOGY In the last few years. Defining organisational values [‘Guiding Principles’] and reaching out to all key managers through several value workshops has been completed during the year which will strengthen the integration process. and rain water harvesting. your Company has derived immense benefit from reduced working capital. In the area of education. which faces a severe water shortage problem. your Company contributed Rs.

708 970 1.FINANCIALS ABRIDGED PROFIT AND LOSS STATEMENT APIL 2004-05 Net sales and operating income Other income Total Income Total Expenditure Operating profit Less : Interest Less : Depreciation/Amortization/ Impairment Add : Profit/(Loss) from associate Profit before EOI.4% Rs.254 3. Profit after tax (PAT) has increased by 17.2% in 2004-05 as against 14% in 2003-04.475 2 1.929 22.415 316 19.254 28 2003-04 16.675 108 2003-04 22.478 15.477 28 1.061 1.9% 13. Profit Before Tax and Extraordinary item as a percentage to sales is marginally higher at 14. resulting in pressure on gross margins.735 2.955 77 2.912 53 14.2% 476 480 614 2 628 39 19.311 836 1.6% -28.750 42 2.7% 20.5% 11.8% 15.5% in 2004-05 against 55.379 68 2.443 19.4%. As a result.878 1. Material consumption as a percentage to sales (standalone accounts) increased to 57. Goodwill Amortization and Tax Less : Extraordinary Item Less : Goodwill Amortization Profit Before Tax Less : Provision for Current & Deferred tax Profit After Tax Add/(Less) : Prior period items Net Profit after prior period items Less : Minority interest Available to shareholders 2.271 2.478 1.5% 19.7% Growth 14.731 16.4% 17. The higher growth for the group reflects the good growth in industrial and international revenues.7% -47.4% and 20.605 324 25.477 3.4% whereas that of the group has increased by 15.2% 17. However. the Company has minimized the impact of the same through prudent overheads management.5% 15.9% Growth 15.494 78 2.179 264 22.476 2 1. in Millions AP Group (Consolidated) 2004-05 25.2% 23.416 941 1.208 3.735 1.4% Net Sales and Operating Income for APIL standalone has increased by 14.8% 17.449 18. Raw material prices continued their upward trend in 2004-05.2% 22.6% in the previous year.966 217 17.4% 2.183 14.741 2.738 (3) 1. .818 (5) 1.813 72 1.6% 17.2% for the standalone entity and group respectively.235 152 15.

2% 8.13:1 2004-05 14. The ratios below summarize the financial performance for the year : The year-end net working capital trend (measured as “Sales/Net Current Assets”) is as under : Sales/Net Current Assets Key Financial Ratios APIL AP Group (Consolidated) 2003-04 17.9% 6.7% 29.53 0. Asian Paints (India) Ltd.12 0.31 Other income in the standalone accounts for year 2004-05 is higher than the previous year by Rs. Out of the total loss of Rs.8% 15. 42 million recognized by the parent company arising on the sale of investments in its subsidiary – Asian Paints (Mauritius) Ltd. Overall.2005 are after providing for impairment loss.) Debt : Equity Interest Cover (PBIT/Interest) 1 16.8% 10.4% 28.8% 14.38:1 2003-04 14.2% 14.15 0.8% 34. the Company has improved its financial performance despite margin pressures and year-end VAT uncertainties.15:1 101 46 28 17 Capital Employed and Networth as at 31. there has been an increase in levels of finished good and raw material inventory towards the yearend in 2004-05 due to VAT related uncertainties and also in anticipation of higher material prices.4% 18.11 0. However.2% 6. Efficient working capital management has been a strength of the Company over the years.5% 31. 68 million had already been recognized in 2003-04 as a provision for diminution in the value of investment.5% 31.4% 11.9% 41.03.28:1 2004-05 PBDIT/Sales PBT before EOI/Sales PAT/Sales Return on Average Capital Employed1 Return on Average Net Worth1 EPS (Rs. 99 million mainly due to dividend received on trade investments and profit on disposal of certain vacant property.0% 8. The extraordinary item in the standalone accounts of 2004-05 is on account of the balance loss of Rs.3% 16. an amount of Rs.6% 31.110 million arising on sale. annual report 2004-2005 .7% 18.7% 37.

pressure on operating margins will continue. Your Company’s internal audit department continuously monitors the adequacy of internal control processes across the business units and ensures compliance with regulatory requirements as well as internal policies. Your Company has well defined independent procedures to execute financial transactions. the industry may not see adequate demand for coatings. the Company is confident that it will grow above industry average due to its forays in fast growing areas like powder coatings and road markings. APIL continues to see three risks that can affect its performance. increasing investments in the development of core infrastructure. if overseas economies in which we have a large presence do not perform well. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY Your Company is committed to ensuring comprehensive internal control across its operations to ensure that all assets are safeguarded and protected against loss from unauthorised use or disposition. estimates and expectation may be “forward looking statements” within the meaning of applicable laws and regulations. and growing needs for consumer durables and automobiles augur well for the continued growth of this segment. Actual results might differ materially from those either expressed or implied. Firstly. Thirdly. A summary of audit observations and the ‘action taken reports’ are regularly placed before the Audit Committee. Secondly. The internal audit also ensures that internal controls and checks and balances in the system are adequate and up-to-date. if India’s GDP growth rate significantly slows down. For the industrial coatings segment. However. If the monsoons are normal. The government’s renewed thrust on infrastructure and the continuation of tax incentives on housing loans will continue to help the paint industry. we expect the rural economy to perform well. risks and statutory compliances. . projections. the performance of the international business can be affected.RISKS AND OUTLOOK The overall outlook for 2005-06 is positive. Internal audits are undertaken on a continuous basis covering both domestic and international operations with specific focus on processes. CAUTIONARY STATEMENT Statements in this Management Discussion and Analysis describing the Company’s objectives. increasing industrialization. if input costs continue to rise.

01 15.7 2.430 3.0 13.695.95 1.379.8 447.0 64.296.134.248.Five year review (Rs.6 704.173.662.69 1.407.8 31.3 2.9 1.9 3.441.248.3 17.2 (3.124.3 13. annual report 2004-2005 33 .087.7 # 16.197 18.356.10 13.32 18.558.8 110.817.6 52.143.5 16.154.1 959.1 13.43 20.420.9 0.33 --1.6 23.584.1 2.7 611.333.066.0 16.1 2.323.2 3.68 2.7 480.9 (8.Earnings per share On increased capital Asian Paints (India) Ltd.0 305.627 3.17 42.2) 1.5 0.0 64.477.4 1.1 --2.311.2 4.8 1.9 637.1 2.27:1 21.470.2 641.3) 1.444.6 28.98 2.55:1 15.8 27.814.99 2.107.2 334.4 # 14.895.1 27.8 641.302.2 52.063.5 10.82 14.8 90.6) 1.558.3 581.3 1.400 3.3 14.61 3.5 14.7 3.1) 1.750.9 3.7 (13.5 12.6 1.5 476.258 3.1 $ 85.5 52.7 29.514.829.115.47 2.45 5.195.0 74.2 486.699.0 $ 55.1 14.38 7. number of employees and ratios) Results for the Accounting Year 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 REVENUE ACCOUNT Gross Sales Net Sales and Operating Income Growth Rates (%) Materials Consumed % to Net Sales Overheads % to Net sales Operating Profit Interest Charges Depreciation Profit Before Tax and Extraordinary item % to Net Sales Extraordinary item Profit Before Tax and after Extraordinary item % to Net Sales Profit After Tax Prior period items Profit After Tax and prior period items Return on average net worth (RONW) (%) * CAPITAL ACCOUNT Share Capital Reserves and Surplus Deferred Tax Liability (Net) Loan Funds Fixed Assets Investments Net Current Assets Debt-Equity Ratio Market Capitalisation PER SHARE DATA Earnings Per Share (Rs.476.5 55.3 2.734.055.65 4.6 15.804.90 12.587.2 959.0 633.2 83.22:1 21.0 57.8 3.135.763.388.3 (10.5 95. in millions except for per share data.2 3.802.62 1.984.42 3.912.) OTHER INFORMATION Number of Employees * # $ 3.1 32.023.268.463.187.47 RONW is calculated after provision for impairment on fixed assets in 2004-2005 EPS is calculated after adjusting for Bonus issue and the reduction of capital on account of merger of Pentasia Investments Ltd.9 12.8 30.9 4.9 29.153.613.2 4.6 641.6 53.8 145. in accordance with Accounting Standard (AS 20) .13: 1 29.0 221.036.259.1 12.9 27.176.056.15: 1 37.0 59.5 485.738.33 1.3 27.1 1.244.7 0.4 29.424.415.9 1.4 838.18 6.8 2.9 1.64 1.5 13.70 4.0 0.611.253.5 10.87 9.4 1.69 --2.708.6 440.43 4.966.1 2.433.475.) Dividend (%) Book Value (Rs.4 19.814.02 68.41 8.5 70.58 0.7 3.4 14.50 14.5 13.43 11.2 2.64 --1.

45 3.) b) Own Generation : Through Diesel Generator Units (‘000 KWH) Units per ltr. Benefits derived as a result of the above R&D: i) Development of new products such as special effect finish . Cost/Unit (Rs.25 3.17 7. Consumption per unit of production : Electricity (KWH/Ton/KL) Furnace Oil (Ton/KL) Natural Gas (Ton/KL) Coal (Ton) FORM B Disclosure of Particulars with Respect to Technology Absorption : Research and Development (R&D) 1. ix) Technological assistance provided to Licencees. viii) Development of products like metallic and pearlescent finish in latex glaze. Thermal insulating coating.45 2. vintage exterior finish and self leveling epoxy floor coating have been launched in few countries. ii) Continuous improvement in quality and cost of existing products. in million) Average Rate/Kg.040 3. v) Water borne retro-reflective road marking paint commercialised under the brand ‘Apcotrak WBR’.02 36 68 ---- 40 71 ---- ------3 ------4 34 . Utsav range of stainers for water based paints and polyester wood finishes. (Rs.87 3.12 23. 89 36 916 100 40 997 41 ---1.26 6. in million) Average Rate/MT (Rs. iv) Exterior paint with superior features and high durability under the name Apex Ultima developed and launched. economy emulsion paint and wall putty for overseas subsidiaries. benchmarking. 22.929 2.35 2. Natural Gas : Quantity (in cubic nm.148 3.688 31 18.556 3. ii) Professional acrylic distemper designed for specific customer segment. vii) Self leveling epoxy floor coating for automotive and chemical industries commercialized. Furnace Oil : Quantity (in MTs) Total Amount (Rs. 15. in million) Rate/Unit (Rs.) B. v) Development of analytical test methods.90 8. iv) Identification of alternate raw materials and vendors enabling quality improvement.252 31 1. characterisation techniques and application essential for product development.Royale play.65 iii) Upgradation of products and processes to improve environmental and safety concerns. Coal : (Steam coal used in Boiler to generate steam for the process)* Quantity (in MTs) Total cost (Rs.13 1.045 28 9. in million) Average Rate/cubic nm. Electricity : a) Purchased : Units (‘000 KWH) Total Amount (Rs.210 40 2.) * includes Leco/Raw Lignite expressed in equivalent tons of coal 3. process control and customer services. of diesel oil Cost/unit (Rs.720 38 21.Annexure to Directors’ Report FORM A Disclosure of particulars with respect to Conservation of Energy : 2004-05 2003-04 A.) Total Amount (Rs. 1. Similarly a fast drying PU coating developed and launched in selected markets.) Natural Gas ---Units (‘000 KWH) Units per cubic nm.) 4.836 101 4. supply chain flexibility and crisis management. Power and fuel consumption : 1.600 105 4.42 1. cost benefits.25 iii) A premium product.005 28 9.16 43 ---0.648 16. Enamels and Varnishes (including Synthetic Resins for captive use) Phthalic Anhydride Pentaerythritol vi) Epoxy tank lining suitable for usage in contact with potable water and for wet heat resistance up to 150 degree celsius developed for refineries. AP melamyne gold clear in the category of acid cure system developed and launched in Mumbai market.57 5.) 2. Specific area in which R&D is carried out by the Company: i) Development of new products and processes related to surface coatings and intermediates.886 2. 04-05 03-04 04-05 03-04 04-05 03-04 04-05 03-04 Paints. (Rs.

89 79. Hence the exports are primarily to the overseas subsidiaries and not to distributors and customers.36 113. resins and tinting colorants. Expenditure on R & D during the year is as follows: (Rs.47% There is no plan to supply material in the near future to any new export markets from India. Going forward. 4. For and on behalf of the Board Mumbai 11th May. demand for tinting colorants will grow. About 20% of exports also include engineering supplies and marketing material. 17.59% 3. and continuously improve quality. Details of expenditure in foreign currency have been given separately under Note B-12 in Schedule ‘M’ . in Millions) 2004-05 2003-04 a) b) Capital Recurring Total R & D expenditure as a percentage of turnover Technology absorption.45 0. society.69 0.Notes to accounts.Annexure to Directors’ Report 3. The main exported materials are raw materials. availability and environment. adaptation and innovation: All developments were done indigenously. where with the focus on improving the retail presence through introduction of retail tinting systems.33 96. 2005 Ashwin C. annual report 2004-2005 35 . Foreign exchange earnings and outgo: With the entry and direct presence in several international markets the major focus in exports currently is to service the needs of the subsidiaries.56 75. Choksi Chairman Asian Paints (India) Ltd. Future plan of action: Company will continue efforts towards development of new products/product systems for domestic and international markets meeting the requirements of customer needs. the export growths will be primarily driven by tinting colorants. cost. All the new markets would be serviced from the overseas subsidiary closest to the market.

1975 and forming part of the Directors’ Report dated 11th May. Penta & Phthalic General Manager . Director of the Company.).1993 15.M. M. For and on behalf of the Board Mumbai 11th May.G.C.1990 05.430. P. Dani and Shri Abhay A.A.Annexure to Directors’ Report Information as per Section 217(2A) read with the Companies (Particulars of Employees) Rules.C.M. Vice.1996 04. Anand Shri Ashwin C. arrears paid. P.Tech. Vakil. Ray & Ray. A.D.Sc.P. No remuneration has been paid to Shri Malav Dani. Chairman. Dani.Human Resources Chief Executive . P.168 237. P.B. M. P.1992 01.E. B.Chairman & Managing Director and Shri Hasit A.827 200. Qualifications Date of commencement of employment Experience No. Development Chemist Gujarat Organics Ltd. Choksi Chairman 36 .L.Com. Nature of employment whether contractual or otherwise: a.1996 02.179 2.205 3..1990 20. S.m.247. performance incentive.Tech.253 3.. Relatives of Directors. Choksi Shri Manish M.04. M. P. 2005.Finance ---Herbertson Ltd. Vakil is related to Shri Abhay A.393 6.D.S. B.Com. B. in terms of Section 217(2A)(ii): Shri Rajiv Kumar Garodia Shri Nikhil Mathur Shri A..G.283 216. Director Shri Malav Dani is related to Shri Ashwin S.I.03.Research Chemist ---- Employee seconded to joint venture company Asian PPG Industries Ltd.B. Assistant Manager UTV Software Communications.11. B.1992 7 11 46 17 14 17 11 ---M/s. S.G. 200.436 205.870.05. B.. Jaiswal Shri S.D.164 3...658 2.Pont De Nemours. Managing Director is related to Shri Amar A.. M.09. (Hons. Rambabu Shri Mahendra Rawat Shri Mayur Toshniwal @ 31 37 67 39 37 45 36 Marketing Manager Finance & Strategic Planning Manager Vice President .. Director .1974 11. MBA B. A. pending statutory approvals.Supply Chain Financial Controller Vice President . Names of Directors: Shri Ashwin C.Tech. M..). P. Vakil.B. Director of the Company.D.994. Personnel Manager ---Resins & Plastics Pvt.1987 01. 2.02.935.. Plant Supervisor ---Sea Services.. Director of the Company..M. b.). Shri Ashwin S..400. B. Summer Intern Interchemical Corpn.08.M. B.348. a.Vice.(Hons.D. Dani Shri Jalaj Dani Shri Vikram Jaisinghani Shri I. 2005 for the year ended 31st March. B..Tech. K.M.Chairman & Managing Director is related to Shri Hasit A. Dani. 2. 3.06.F..06.Sc.S.).. Engg. The employment of Shri Ashwin C.I.D. B. Shahani Shri Vivek Subramanian Shri Amit Syngle Shri Abhay A.International GM .Sales & Marketing Chairman Vice President .376.262 B. Shri Ashwin S. Dani.Chairman & Managing Director and Shri Hasit A. N.. Dani is related to Shri Ashwin S.S.1965 17.Accounts & Taxation Materials Executive General Manager .799 2. B.Chem.05.Chem.(Hons.G. Vakil. M. Vakil. Chairman is related to Shri Mahendra C.M. M. Ram @ Shri J. Choksi.Marketing Managing Director 4.Sc.446 5.M.E.Corporate Finance & Company Secretary President . B.318. Cost & Budget Manager ------Devidayal (Sales) Pvt.W..(Mech. S.501 2.D. 06.335 2. P.).Decoratives (India) Vice President .(Hons.1979 15.424. Vakil and Shri Rupen Choksi was less than the limit prescribed in terms of Section 217(2A) for the year.D. Chartered Accountants Apar Pvt Ltd.M.744 B.M. B.P. B.1979 01.06..Sc. Vice.in terms of Section 217(2A)(i): Shri K.05. B.M.E.1999 03.10. Vakil.000/. A.1985 01.821 3. S.A.D.07. General Manager Materials & Sourcing ------Price Waterhouse & Co. as well as monetary value of perquisites as per Income Tax Rules.G.M.137 6. Director Shri Manish M.Retail Sales General Manager .S. Name Age Designation/ Nature of Duties Remuneration Rs.857. commission.M.. Vice President . B.Manufacturing Regional Vice President Vice President . conveyance allowance.827.272 218.G. Designation (a) Particulars of employees employed throughout the financial year and who are in receipt of remuneration of not less than Rs.p.).06.1984 20.05.G. M.(Tech..E. leave encashment. Dani. Ltd.M. Company’s contribution to provident fund and superannuation fund.261 5. Dani. Ms. Choksi.06.. Notes: 1. house rent allowance.L.Tech.. Director Shri Rupen Choksi is related to Shri Ashwin C.03.921. Vakil is contractual for five years and terminable by six months notice on either side.2002 03. V. Director Ms.623.Systems Manager . of years Last Employment Held Name of the Company. Choksi. The remuneration of Ms. The employment of the remaining persons is contractual and the terms and conditions are subject to the rules and regulations of the Company as in force from time to time.Com. Remuneration includes.943 2.D.520. Names of employees: Shri Jalaj A.939.195 9. 01.S. Managing Director GE Lighting Ltd. Choksi is related to Shri Mahendra C. dearness allowance. Choksi Shri Ashwin S.2002 03. Vakil is related to Shri Amar A.000/. Murthy Shri Girish Pradhan Shri P.1999 01..C.Com.1987 01.Com. Choksi.A.Du.844. Choksi.Com. Shri Abhay A.1974 25 40 14 37 12 19 23 25 26 21 33 31 30 34 18 15 30 ------E.1971 01.01.G.01.01. Engg.M.).G. B. Nehal A. Managing Director Ms.G. It excludes provision for accrued leave salary and the Company’s contribution to Gratuity Fund as the same is a lumpsum amount based on actuarial valuation. S. L. salary.B. P.W.1968 18.M B.Sc.363 10.061 9. CA.Ltd. B. Amrita A.Strategic Planning & IT Vice Chairman & Managing Director Vice President ..06.1974 01. Nehal A.Product Development Purchase Manager 318.583.D.. Dani. b.Sc.Asian PPG Industries Ltd.(Mech. B. Murty Shri Vivek Patwardhan Shri V.G. Amrita A. 2005 Ashwin C.06.045. medical and leave travel allowance etc.Tech. Marketing Incharge ---- (b) Particulars of employees employed for the part of the year who were in receipt of remuneration at the rate of not less than Rs. Vakil 49 63 38 63 35 42 46 50 50 47 54 53 54 58 41 38 54 Vice President .09. Kini Shri Gokul Manjeshwar Shri Jayesh Merchant Shri P. B.Industrial.1982 01.

3 December 2004. Ashwin C. Rajagopalachari @ Mahendra C. while the other three are non-executive. Table 1: Details about Asian Paints’ Board of Directors Name of Director Position Board meetings held during the year Board meetings attended Whether attended last AGM Directorships in other companies incorporated in India Memberships in board committees of other companies* BOARD OF DIRECTORS Composition of Board As on 31 March 2005. sincerity and consistency. integrity and transparency. The Company lays significant emphasis on the principles of accountability. 28 July 2004. the Board comprised of twelve Directors. Shah 6 6 6 6 6 6 6 6 6 6 6 6 6 4 6 5 6 5 6 6 5 5 3 6 Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes 3 --3 3 3 2 4 7 7 15 3 4 3(-) --1(-) ----4(3) 4(3) 7(4) 5(2) 10(4) 1(-) 2(-) Notes: * The figures in parenthesis denote the number of chairmanship(s) of board committees in other companies. Manubhai G. The Securities and Exchange Board of India (SEBI) has prescribed mandatory standards of corporate governance for all companies listed on Indian stock exchanges and notified them under Clause 49 of the listing agreement. Asian Paints has already adopted a Code of Conduct which lays down the standards of values.Corporate Governance Asian Paints’ philosophy has always been to practice the best standards of Corporate Governance for the welfare of stakeholders. Satwalekar Rajendra A. Our business strategy and day to day affairs of the Company are conducted with highest level of compliances. Choksi Ashwin S. Patel resigned from the board effective 25 March 2005. @ Mr. are whole-time executive Directors. Vakil Hasit A. 27 October 2004. K. Dani Manubhai G. Choksi Amar A. Rajagopalachari expired on 14 March 2005. Patel # Tarjani Vakil Dipankar Basu Deepak M. including the executive Chairman. 19 January 2005 and 25 March 2005. # Mr. Three of the six promoter-Directors. Asian Paints (India) Ltd. Number of Board meetings The Asian Paints Board met six times during the year. The remaining six Directors are non-executive and independent. ethics and business principles of the Management. Vakil K. annual report 2004-2005 37 . six are promoter-Directors. This chapter. The Board meetings took place on 11 May 2004. Shah Swaminathan Sivaram Mahendra M. Dani Executive Chairman/ Promoter Executive Vice-Chairman/ Managing Director/ Promoter Managing Director/ Promoter Non-executive 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 6 6 6 6 Yes Yes 2 6 2(1) 4(2) Abhay A. out of whom. along with chapters on Management Discussion and Analysis and Additional Shareholders Information. constitutes Asian Paints’ compliance with Clause 49 of the listing agreement.

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.00. any materially relevant defaults in financial obligations to and by the Company or substantial non-payment for goods sold by the Company. except for Mr. Ministry of Law. K. investment of funds of the Company.737. The appointment of late Mr. proposals for investment.. Remuneration of Directors The executive Chairman and other executive Directors are paid remuneration as per their agreements with the Company. prosecution and penalty notices. and provision of medical facilities as applicable to executives of the Company.Corporate Governance Information supplied to the Board The following. which are not in the normal course of business. pecuniary or business relationship with the Company None of the non-executive Directors of Asian Paints have any pecuniary relationships with the Company except late Mr. significant initiatives and developments on the human resource and industrial relations fronts. none of these transactions have a potential conflict with the interest of the Company at large. non compliance of any statutory nature of listing requirement. shareholders and such other authorities as may be necessary. The non-executive Directors receive commission and sitting fees. Government of India. gratuity and leave travel allowance and these are reviewed by the Remuneration Committee of the Board before being approved. under Section 309 (1)of the Companies Act. minutes of meetings of the audit committee and other board committees.1956 (vide 6/33/2000-CLVII of 1. 38 . He also drew a monthly pension of Rs. Justice and Company Affairs. and Directors with materially significant related party transactions. Table 2 gives the details of the remuneration package of Directors and their relationship with each other. However. K. sale of a material nature of investments. significant labour problems and their proposed solutions. telephone facilities at home and office. any issue which involves possible public or product liability claims of a substantial nature. demand.50. As required under Accounting Standard 18 (AS-18) transactions with related parties are furnished under Schedule M of the Notes to the Accounts. Rajagopalachari had received the approval of the Department of Company Affairs. information on recruitment and remuneration of senior officers just below the Board level. K. perquisites. subsidiaries and assets.1. half yearly and annual results of the Company and its operating divisions or business segments. fatal or serious accidents or dangerous occurrences. who in addition. drew remuneration as stated above. house rent allowance. These agreements are approved by the Board. quarterly. transactions that involve substantial payment towards goodwill. Disclosures have also been received from the Senior Managerial Personnel relating to the financial transactions in which they or their relatives may have a personal interest. that may have a potential conflict with the interest of the Company. operating plans and budgets. There are no transactions of material nature with the promoter Directors or their relatives etc. Rajagopalachari.50 as per Company rules. brand equity or intellectual property. capital budgets. The remuneration structure of the executive Chairman and other executive Directors comprises salary. details of any joint venture or collaboration agreement. inter-alia. is provided to the board as a part of the agenda papers well in advance of the board meetings or is tabled in the course of the Board meetings: annual budgets. materially important show cause. commission. mergers and acquisitions. status on legal cases.000 per month. a Company car and driver.2000).11. contribution to provident/superannuation fund. Rajagopalachari who had been appointed as an advisor for a period of five years with effect from 1 June 2000 and received a retainer fee of Rs.

60.943/.000 50.Dani Abhay A. Vakil.10.00.363/.000 5. Nehal A. Choksi. based on the recommendation of the Remuneration Committee.50.00.000 46.as per the approval of the members of the Company and the Government of India. Vakil. Ashwin C. 0. ** Includes retainership of Rs.90. Abhay A. as well as monetary value of perquisites as per Income Tax rules.000 90.000 The employment of Mr.000 7.30.179 1. Mahendra C.The gross remuneration paid to him for 2004-05 is Rs.50. is a Finance Executive and joined the Company on 18 January 1999. son of Mr. Vakil Son of Ashwin S.40.00. Dani.000 4.00.00.45.00.40.921. Ms.00.Vakil --Brother of Ashwin C. 2.000 2. During 2003-04. Dani. The gross remuneration paid to him for 2004-05 is Rs.000 ----------------------- HRA 7.000 4.000 4.58 million paid during the year. Mr. Relationship with each other Brother of Mahendra C.40.000 4.32.00. medical and leave travel allowance etc.30. as applicable have been included.Shah Swaminathan Sivaram Mahendra M.000 1.50.00. daughter of Mr.000 4.Choksi Ashwin S.Dani Brother of Amar A. K. Mr.000 5.335 99.262 **4. thereafter.00.35.60.000 5.000 4.Shah Notes : * Perquisites include company’s contribution to provident and superannuation fund.335 27.179 28. Choksi. Rajagopalachari expired on 14 March 2005.75.75.The gross remuneration paid to her for 2004-05 is Rs.000 4. Jalaj A. is Vice-President-International and joined the Company on 18 January 1999.Vakil K.000 2.Choksi Amar A.000 Total 98. Satwalekar Rajendra A. Pension and leave encashment.000 1. Manubhai G.50.as per the approval of the members of the Company and the Government of India.) Name of Director Ashwin C.Choksi Brother of Abhay A.00. @ Mr. Nehal Vakil. 173(2) of the Companies Act. The Board of Directors at its meeting held on 11th May.000 1.000 7.266/.10.20. is Vice-President .000 1.000 46.00.25 million and pension of Rs.000 ----------------------- Perquisites* 26. Asian Paints (India) Ltd.000 4. 2005. Necessary resolutions for the revision of service conditions.40.Patel # Tarjani Vakil Dipankar Basu Deepak M.000 4.000 Commission 46.939. Patel resigned from the board effective 25 March 2005. # Mr.Vakil Hasit Dani Manubhai G.2.000 18.000 --------------------- Sitting fees ------60.Strategic Planning and Information Technology and joined the Company on 17 September 1992.1. subject to the approval of the shareholders at the general meeting and the Central Govt.000 4.000 5.000 1.000 5. Six employees are relatives of Directors of Asian Paints.000 60. Dani and Mr. 1956 are part of the Notice convening the Annual General Meeting of the shareholders. Jalaj Dani.50. annual report 2004-2005 39 .00.40.000 1.262 15. 739. the Company renewed the contract with them for a period of five years. Manish Choksi and Ms.75. son of Mr. Vakil as executive Directors is contractual for five years and can be terminated by six months notice on either side. Mr.Choksi Father of Hasit A.000 4.000 18.75. Ashwin S. including remuneration of the above three Executives as well as the Explanatory Statement u/s.57. Dani --------------- Salary 18. Abhay A. Mr. Manish M.30.000 30.Rajagopalachari @ Mahendra C. revised the service conditions of Mr.00.as per the approval of the members of the Company and the Government of India.60.000 5.Corporate Governance Table 2: Details of the remuneration paid to Directors and their relationships with each other are as follows (in Rs.00.000 4. Choksi.00. Ashwin S.000 4.

Mahendra M. son of Mr. Shah Hasit Dani # Mr. Patel # Mahendra C. Dipankar Basu (independent Director). daughter of Mr. Vakil. compliance with accounting standards and stock exchange and legal requirements concerning financial statements. The gross remuneration paid to him for 2004-05 was Rs. effective 25 March 2005. Reviewing reports furnished by the internal auditors and statutory auditors and ensuring suitable follow up thereon. Deepak Satwalekar (independent Director). Vakil. Mr. HR Executive. All the members of the committee possess financial and accounting knowledge. Ashwin Choksi. Mr. Tarjani Vakil (independent Director) and Mr. K. Rajagopalchari. the Remuneration Committee of Directors has been reconstituted by the Board of Directors at its meeting held on 25 March 2005. The remuneration committee comprises of three non-executive independent Directors. Reviewing the related party transactions. is Manager . His appointment and remuneration is subject to approval by the shareholders in the forthcoming annual general meeting and the Central Government. son of Mr. Amrita A. Tarjani Vakil (independent Director). 331.Corporate Governance Ms. The audit committee was reconstituted on 25 March 2005 and comprises of three non-executive independent Directors. Reviewing with management quarterly. 12 October 2004. and 18 January 2005. Malav Dani. 26 October 2004. The audit committee met six times during the year on 10 May 2004. 40 . Patel (Chairman and independent Director). joined the Company on 8 September 2003 and left the Company on 3 November 2004 as an Executive Trainee. 1956 as well as those of clause 49 of the listing agreement. Director of the Company. Choksi Tarjani Vakil Mahendra M. Ms. Manubhai G. Mr. The Executive Chairman of the Company. Mr. The composition.752/as per the approval of the members of the Company. The details of number of meetings held and attendance record of members are given in table 3. Ashwin S. fixing of audit fees and approving payments for any other service. Reviewing adequacy of internal control systems and the internal audit function. The members of the Committee are Mr. role and functions of the audit committee constituted by the Company comply with requirements of the Companies Act.161/. Shah (independent Director) and Mr. Reviewing the Company’s financial and risk management policies. Hasit Dani (Non executive Director). of committee meetings attended 6 6 6 6 6 Committees of the Board Audit Committee The Audit Committee comprised of Mr. Ms. 13 September 2004. procedures. Manubhai G. Amar A.Corporate Finance & Company Secretary. 354. powers. The terms of reference of the Audit Committee include the following: Overseeing the Company’s financial reporting process and the disclosure of its financial information. Financial Controller.Quality Support in the Corporate Centre of the Company and joined the Company on 21 February 2005. joined the Company on 6 January 2003 and left the Company on 31 March 2005. Reviewing the internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or failure of internal control systems of a material nature and reporting the matter to the Board. Mahendra M. Dipankar Basu (Chairman and independent Director). Table 3: Details about audit committee meetings Name of Director No. The details of number of meetings held and attendance record of members are given in table 4. Rupen Choksi. Mahendra C. Mr. Recommending appointment and removal of the statutory auditor. Vice President . Remuneration Committee Due to the sad demise of Mr. Tarjani Vakil (Chairperson and independent Director). Dani. Shah (independent Director). 27 July 2004. Accounts Manager and Corporate Audit Manager also attend audit committee meetings. Patel resigned from the board. The members of the Committee are Ms. half-yearly and annual financial statements with primary focus on accounting policies and practices. of committee meetings held 6 6 6 6 6 No. Choksi (Non executive Director).The gross remuneration paid to her for 2004-05 was Rs. Manubhai G.as per the approval of the members of the Company.

Rajagopalchari. commission. Vakil (Managing Director). Shah (Chairman and non-executive independent Director). The scope of the Remuneration Committee is as follows: To review and recommend to the Board. of committee meetings attended 1 1 1 1 Dipankar Basu Ms. Mr. Choksi Hasit Dani MANAGEMENT Management Discussion and Analysis This annual report has a detailed section on Management Discussion and Analysis. No penalties were imposed or strictures were passed against the Company with regard to the capital market in the last three years. Table 6: Details about shareholder/investor grievance committee meeting after its reconstitution on 25 March 2005 Name of Director No. Choksi (nonexecutive Director) and Mr. The Committee considers these based on Company performance as well as individual performance vis-a-vis agreed goals. Shah of the number of meetings held and the attendance record of the members are given in table 5 and 6. Jayesh Merchant. as well as SEBI regulations and guidelines. Mahendra C. To approve the selection and appointment of relatives of Directors as required by section 314 of the Companies Act. Rajagopalachari @ Abhay A. Director of the Company. is the compliance officer. Vakil Mahendra C. of committee meetings held 1 1 1 1 No. Mr. To review the remuneration policies and practices relating to senior management of the Company. Shah Abhay A.of Committee meetings held 4 4 4 4 No. Rajagopalchari @ @ Mr. Abhay A. Rajagopalachari expired on 14 March 2005.of committee meetings attended 4 4 4 1 K. Asian Paints (India) Ltd. other benefits. the salaries. K. The Committee also oversees the performance of the Registrar and Transfer Agent of the Company and recommends measures for overall improvement in the quality of services to the investors. 1956. The committee met twice during the year on 27 July 2004 and 30 March 2005 to review investor grievances and the details @ Mr. Mr. Shareholder/Investor Grievance Committee The Company has constituted a Shareholder/Investor Grievance Committee of the Board of Directors to specifically look into complaints received from the shareholders of the Company. Jayesh Merchant. 1992. service agreements and employment conditions of Executive Directors.executive Director). Rajagopalachari expired on 14 March 2005. Mr. Mahendra M. annual report 2004-2005 41 . Choksi Mahendra M. of committee meetings attended 1 1 1 1 Mahendra M. The Board of Directors on 25 March 2005 reconstituted the Shareholders/ Investor Grievance Committee due to the sad demise of Mr. Table 5: Details about shareholder/investor grievance committee meeting before reconstitution Name of Director No.Tarjani Vakil Deepak Satwalekar K. The members of the Company’s newly constituted Shareholders/ Investor Grievance Committee are Mr. Disclosures by management The Company has complied with all requirements of the Listing Agreement entered into with The Stock Exchange.Corporate Governance Table 4: Details about remuneration committee meetings Name of Director No. K.Corporate Finance & Company Secretary has been appointed as the Compliance Officer. Vice President . Vice President . As required by SEBI (Prohibition of Insider Trading) Regulations.Corporate Finance & Company Secretary. the Company has adopted a policy for Corporate Disclosure Practices for prevention of insider trading with effect from June 2002. Hasit Dani (non. taking into account prevailing practices in the corporate world. Mumbai and The National Stock Exchange of India Ltd. of committee meetings held 1 1 1 1 No. Vakil Mahendra C. K.

Deepak Satwalekar (56) is a B. Vakil (Managing Director of Asian Paints). She has extensive experience in international trade finance and export marketing strategy. She is also on the local advisory Board of ABN-Amro Bank. at least two-thirds of the Board should consist of retiring directors. Of these. Information required under Clause 49 VI A of the listing agreement with The Stock Exchange.. Pursuant to clause 51 of the listing agreement.asianpaints.. Nine out of the twelve directors of the Company are retiring directors. Sun F&C Asset Management (India) Pvt.. She is a Trustee in General Electoral Trust and Qimpro Fundation. iGate Global Solutions Ltd. Mahindra Intertrade Ltd. She held the position of Chairperson of the Export-Import Bank of India. He is a former Chairman of State Bank of India. Mr. Deepak Fertilizers and Petrochemicals Corporation Ltd. She is on the Board of Directors of Indian Rayon & Industries Ltd.. i-flex Solutions Ltd.. one-third are required to retire every year.. He has been a consultant to the World Bank. ECGC. The results are also displayed on the Company’s website www. She has been a consultant to developing countries for setting up export credit agencies. Ltd.. Washington DC. During the year the Share Transfer Committee was reconstituted.com. LIC and GIC. Peerless General Finance and Investment Co. He has been a Director in the Company since 30 May 2000. STCI. Chambal Fertilizers and Chemicals Ltd. She has been on the Board of Directors of IDBI. BHEL. He has spent his entire professional career with State Bank of India. SBI Cards & Payment Services Pvt. Shri Dipankar Basu (69) holds a Masters degree in Economics from the Delhi University. She has been a Director in the Company since 1 December 1998. Abhay A. Ashwin S.. The status on complaints is reported to the Board of Directors as an agenda item. DSP Merrill Lynch Trustee Company Pvt. of India and is actively involved in CII. the Company has constituted a Shareholder/Investor Grievance Committee for redressing shareholder and investor complaints. He is on the Boards of various Companies. Presently he is the Managing Director of HDFC Standard Life Insurance Company. The Company’s official news releases and presentations made to institutional investors and analysts are available on the Company’s website. Mumbai and completed his post graduation in business administration from the American University. Tarjani Vakil (68) completed her post-graduation from Mumbai University. He has been a Director in the Company since 15 April 2000.. financial information such as the annual and quarterly financial statements. Rain Calcining Ltd. Investor grievances As mentioned earlier. He was involved in policy work as a member of the Steering Committee on Urban Infrastructure and Housing for the Ninth Five Year Plan of the Govt. Ltd. He is a Director on the Boards of Securities Trading Corporation of India Ltd. The committee ordinarily meets once every fortnight. He was appointed Deputy Managing Director of HDFC in 1990 and became Managing Director in 1993. Mumbai (relating to Corporate Governance) with respect to the Directors retiring by rotation and being eligible and seeking re-appointment is given in notes to the notice convening the meeting. 1956.. United States Agency for International Development (USAID) and the United Nations Centre for Human Settlement (HABITAT). As on 31 March 2005. Ltd. Ms. Share transfer The Board of Directors has delegated the power to attend to share transfer approvals to a share transfer committee. Ltd. Dani (executive Vice-Chairman and Managing Director of Asian Paints) and Mr..Tech from the Indian Institute of Technology (IIT). the committee comprised Mr. She is a Managing Committee Member in Indian Merchant Chamber. Mahendra C. and Saregama India Ltd. Choksi (non-executive Director). Means of communication The financial results of the Company are published in widely circulated newspapers such as the Business Standard and Loksatta. shareholding pattern and segment-wise results are also available on the SEBI web-site www..sebiedifar. Alkyl Amines Chemicals Ltd.in.nic. 42 . He is on the Board of Directors of several companies.Corporate Governance SHAREHOLDERS Disclosures regarding re-appointment of Directors As per the Companies Act. the Asian Development Bank. He spearheaded its foray into investment banking and was responsible for setting up SBI Capital Markets and SBI Mutual Fund.

2001-2002 Patkar Hall. Chartered Accountant as Scrutinizer for conducting the postal ballot. Asian Paints (India) Ltd. EGM 18 July 2003 1:00 p. General Jagannath Bhosle Marg.m.N. AGM 18 July 2003 10:30 a. Nathibai Thackersey Road. Mumbai 400 020. New Marine Lines. Mumbai 400 020. Nathibai Thackersey Road. The Company has fixed 14 May 2005 as the last date by which the postal ballot form duly completed and signed should reach the Scrutinizer. Mumbai 400 020. 1956 along with postal ballot form in relation to a Special Resolution under Section 21 of the Companies Act.m.400 021. AGM 26 July 2002 3:00 p. Y. B. 1956 seeking shareholders’ consent for change of name of the Company from Asian Paints (India) Limited to Asian Paints Limited was posted on 11 April 2005. 2003-2004 Yashwantrao Chavan Pratisthan Auditorium. Details regarding postal ballot to be passed for change of name from Asian Paints (India) Limited to Asian Paints Limited during the financial year 2005-06 Notice under Section 192A of the Companies Act. The declaration of result of postal ballot is scheduled on 30 May 2005. 2002-2003 Patkar Hall. annual report 2004-2005 43 .Corporate Governance General body meetings Location and time of the AGMs and EGMs held in the last three years Year Location Meetings AGM Date 28 June 2004 Time 3:00 p. The Board in its meeting dated 25 March 2005.m. No special resolutions were put through postal ballot in 2004-05. Nathibai Thackersey Road. 2002-2003 Patkar Hall. New Marine Lines. Next to Sachivalaya Gymkhana. has appointed Shri H. Chavan Centre. Mumbai .m. Shah. New Marine Lines.

Venue: Patkar Hall. results were announced on: 28 July 2004 : First quarter 27 October 2004 : Half yearly 19 January 2005 : Third quarter 11 May 2005 : Fourth quarter and annual. Volume is the total monthly volume of trade in Asian Paints shares on BSE.00 363. results will be announced: on or around 27 July 2005: First quarter on or around 26 October 2005: Half yearly on or around 31 January 2006: Third quarter on or around 11 May 2006: Fourth quarter and annual. low and volumes of Asian Paints’ shares for 2004-05 High (Rupees) April 04 May 04 June 04 July 04 August 04 September 04 October 04 November 04 December 04 January 05 February 05 March 05 323. For the year ending 31 March 2006.Additional Shareholders’ Information ANNUAL GENERAL MEETING Date: Monday. A final dividend of Rs.75 326.00 330.50 (55 per cent dividend) per share has been recommended on 11 May 2005 and.00 325. Note: Both Asian Paints share prices and the BSE Sensex have been indexed to 100 as on 1 April 2004. Book Closure The dates of book closure are from 24 June 2005 to 27 June 2005.00 245. will be paid on or after 27 June 2005.25 295. 27 June.of shares) 1698638 715429 282876 132987 160987 132973 370521 718266 1546289 492757 370701 926187 Note: High and low are in rupees per traded share. Nathibai Thackersey Road. 5. Mumbai 400 020. Mumbai (BSE) for the year ended 31 March 2005.60 341.50 323. 2005.55 304. Mumbai and the National Stock Exchange of India Limited (NSE).00 289.10 307. Listing The Company’s shares are listed on The Stock Exchange. Dividend Date An interim dividend of Rs.00 295. Distribution of Shareholder holdings Table 3 and 4 give the distribution pattern of shareholding of your Company as on 31 March 2005 by ownership and size class respectively.00 per share (40 per cent dividend) was declared on 27 October 2004 and paid on 2 November 2004.00 282.00 360.75 315.00 293.00 Low (Rupees) 299.60 302. The stock exchange codes assigned to your Company's shares at these stock exchanges are given in table 1.00 306.30 350.05 Volume (No.00 395. 44 Aug-04 Apr-04 Mar-05 Sep-04 Jan-05 Feb-05 50 Jun-04 Jul-04 . Chart A shows the comparison of your Company's share price movement vis-à-vis the movement of the BSE Sensex: Chart A: Asian Paints’ share performance versus the sensex for 2004-05 250 210 170 130 BSE Sensex 90 Asian Paints Oct-04 Dec-04 Nov-04 May-04 Stock Data Table 2 gives the monthly high and low prices and volumes of your Company's shares at The Stock Exchange. Table 1: Stock exchange codes Stock exchange BSE NSE Code 500820 ASIANPAINT Table 2: High. Time: 15:00 hours Financial calendar Financial year : 1 April to 31 March For the year ended 31 March 2005. New Marine Lines. 4.95 317.60 338. subject to approval from the shareholders at the AGM. inclusive of both days.

.com SHAREPRO SERVICES (INDIA) PVT. 2834 8218 Fax No.: 2288 1568. 2837 5646 Email: sharepro@vsnl. Andheri (E). of shares 721950 892034 3844814 7506986 2949074 1710082 % of share holding 0. Satam Estate.Additional Shareholders’ Information Table 3: Distribution of shareholding by ownership No.00 95919779 81. Free Press Journal Road.86 0. Nariman Point. 912. Unit: Asian Paints (India) Ltd.21 12.78 De-materialisation of shares The shareholders have the option to hold Asian Paints’ shares in demat form through the National Securities Depository Limited (NSDL) or Central Depository Securities Limited (CDSL).86 0.00 Table 5: Number of shares in physical and demat form as on 31 March 2005 No. 2832 9828. The ISIN number allocated to Asian Paints by NSDL and CDSL is INE021A01018. Table 5 gives the break up of shares in physical and demat form: Asian Paints (India) Ltd.51 0. of equity shares held 1-100 101-200 201-500 501-2000 2001-5000 5001-10000 10001 and above Total 358 49739 0.72 78294839 100.62 100. of shares held Directors. Ltd. to Sharepro Services (India) Pvt.68 15. beneficial owners and depository participants (DPs) are requested to send/deliver the documents/ correspondence relating to the Company's share transfer activity etc. 2282 5484 Email: sharepro_services@roltanet. Registrar and Share Transfer Agent of the Company at the following addresses: SHAREPRO SERVICES (INDIA) PVT. Chakala.47 No. Shareholders.55 100. 63.98 2.15 2. Mumbai 400 021. annual report 2004-2005 45 .55 per cent of the Company’s shares are held in electronic form.36 21.75 0. of shares Physical segment Demat segment Total 34962585 60957194 95919779 Percentage of total shares 36. Raheja Centre.2834 7719.83 3. 2821 5991. LTD. Unit: Asian Paints (India) Ltd. Fax No. 2821 5168.No.96 1.00 Outstanding GDRs/ADRs/Warrants/Convertible Instruments and their impact on equity Not applicable. relatives and associates Other Directors and their relatives Individuals Domestic companies Financial institutions Mutual Funds and Banks FIIs and OCBs Non-Resident Individuals Total 41111965 2923 16790464 843881 12451144 2261262 20287955 2170185 95919779 % of Shares held 42.45 63. is the Registrar & Transfer Agent of the Company. of % of shareholders shareholders 23480 6017 10783 7939 927 235 47.com Table 4: Distribution of shareholding by number of shares held No.88 12.00 17. 2288 1569. 2282 5163.08 1.10 21. Ltd. 2288 4527.26 100. Cardinal Gracious Road. 3rd Floor. LTD. Above Bank of Baroda. Mumbai 400 099. Tel. At present.01 7. Tel. Registrar & Transfer Agent Sharepro Services (India) Pvt.No.00 No. Details of public funding obtained in the last three years Your Company has not obtained any public funding in the last three years.93 4.

change of address. Shareholders who desire receipt of their dividend through ECS can obtain the application form from the office of the Registrar and Transfer agent. information on topics such as transfer and transmission of shares. Shareholders located in places where ECS facility is not available may submit their bank details.com) The Company’s website provides for the benefit of shareholders. 1956. in the year 2005 the Company would be transferring the final dividend for the year 1997-1998 and the Interim Dividend for the year 1998-1999 to the Investor Education and Protection Fund on 5 September 2005 and 27 November 2005 respectively. This will enable the Company to incorporate this information on dividend warrants to minimise the risk of fraudulent encashment. Accordingly. documents will also continue to be accepted at the following office of the Company: ASIAN PAINTS (INDIA) LTD. This would enable the Company to service its investors better. loss of share certificates and the Company’s performance and dividend policy.400 055 Email: investor. In terms of Sections 205A and 205C of the Companies Act. dematerialisation. from that date it should be transferred after seven years to IEPF. Electronic Clearance Scheme (ECS) for Dividend Your Company provides shareholders an option to receive dividends through the ECS facility. To avoid risk of loss/ interception of dividend warrants in postal transit and/or fraudulent encashment. This also ensures faster credit of dividend. the Company is required to transfer the amount of dividend remaining unclaimed for a period of seven years from the date of transfer. Website (www. Santacruz (E) Mumbai .com Members are requested to quote their e-mail address.asianpaints. Table 6: Dates of unclaimed dividend to be transferred to Investor Education & Protection Fund (IEPF) u/s 205C. shareholders are requested to avail the ECS facility — where dividends are directly credited in electronic form to their respective bank accounts. equity history. Type of complaints Non receipt of shares Non receipt of dividend warrant Others Total A B. Complaints received through SEBI Stock Exchanges Department of Company Affairs Directly from shareholders Total B 9 1 --52 62 20 34 8 62 46 .relations@asianpaints.* Year of Dividend 1997-98 (Final) 1998-99 (Interim) 1998-99 (Final) 1999-2000 (1st Interim) 1999-2000 (2nd Interim/Final) 2000-2001 (Interim) 2000-2001 (Final) 2001-2002 (Interim) 2001-2002 (Final) 2002-2003 (Interim) 2002-2003 (Final) 2003-2004 (Interim) 2003-2004 (Final) 2004-2005 (Interim) Date of Declaration 6 Aug 1998 28 Oct 1998 15 Jul 1999 29 Oct 1999 30 Mar 2000 23 Oct 2000 28 Aug 2001 30 Oct 2001 26 Jul 2002 23 Oct 2002 18 Jul 2003 30 Oct 2003 28 Jun 2004 27 Oct 2004 Date of Transfer to IEPF 5 Sept 2005 27 Nov 2005 14 Aug 2006 28 Nov 2006 29 Apr 2007 22 Nov 2007 27 Sep 2008 29 Nov 2008 25 Aug 2009 22 Nov 2009 17 Aug 2010 29 Nov 2010 27 July 2011 26 Nov 2011 *within 30 days the dividend account to be transferred to unclaimed dividend account and thereafter. telephone number and full address for prompt reply to their communication. nomination. Number and nature of complaints Your Company received 62 complaints from its shareholders during 2004-05. Shareholders are requested to update their bank account details with their respective DPs. Asian Paints House 6A Shantinagar. to the unpaid dividend account with the Investor Education and Protection Fund.Additional Shareholders’ Information For the benefit of shareholders. Details are given in table 7. Shareholders are requested to ensure that they claim the dividend(s) from the Company before transfer to the Investor Education and Protection Fund. Table 7: Details of complaints received A.

Kasna Village. Tel: +91-(0)22-5695 8000 Fax: +91-(0)22-5695 8888 Asian Paints (India) Ltd. GIDC Industrial Area. Gujarat. Sriperumbudur 602 105. Plot Nos. As on date. Bhandup. TamilNadu. annual report 2004-2005 47 . Andhra Pradesh. Mumbai 400 078. Shantinagar. Kasna .2702. Patancheru 502 309 Dist. 50-55. GIDC Industrial Area. Uttar Pradesh. Penta Plant: B5-B10..All the above complaints were attended to immediately. Plot No. Ankleshwar 393 002. UPSIDC Industrial Area. Tehsil Sikandarabad. Registered Office: Asian Paints (India) Ltd. Plant locations Paint Plants: Lal Bahadur Shastri Marg. Kancheepuram District. 2602. Sipcot Industrial Complex. are pending. A-1. Your Company endeavours to reply to all complaints received from its shareholders within a period of two days. Mumbai 400 055. Dist. Gujarat. Medak. Tamil Nadu. Industrial Development Area.II. Phthalic Plant: Plot No. Santacruz (East). which are constrained by dispute or legal proceedings or court orders. Phase II. Ankleshwar 393 002. Cuddalore 607 005. only those cases.F13. Plot No. SIPCOT Industrial Park. Bulandshahr 203 207. E6. 6A. Maharashtra.

Shah Partner Membership No. For Shah & Co. It is neither an audit nor an expression of opinion on the financial statements of the Company. adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. 2005 H. 8152 48 . We state that no investor grievances are pending for a period exceeding one month against the Company as per the records maintained by the Shareholders/Investors Grievance Committee. In our opinion and to the best of our information and according to the explanations given to us. and the representations made by the directors and the management. N. 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.Auditors’ Report on Corporate Governance to the members of Asian Paints (India) Limited We have examined the compliance of conditions of Corporate Governance by Asian Paints (India) Limited for the year ended 31 March. Our examination was limited to procedures and implementation thereof. Chartered Accountants Mumbai 11th May. The compliance of conditions of Corporate Governance is the responsibility of the management. 2005 as stipulated in clause 49 of the Listing Agreement entered into with the stock exchanges. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

the Profit and Loss Account and the Cash Flow Statement referred to in this report are in agreement with the books of account and with the audited accounts of Penta Division. on a test basis. 2005 Asian Paints (India) Ltd. For Shah & Co. the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211(3C) of Companies Act. Chartered Accountants H. N. annexed thereto. In our opinion and as per the information and according to the explanations given to us. issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act. 1956. 1956. These financial statements are the responsibility of the Company’s management. of the profit of the Company for the year ended on that date. Further to our comments in the Annexure referred to in paragraph 3 above. As required by the Companies (Auditor’s Report) Order. An audit includes examining. of the state of affairs of the Company as on 31st March 2005. the Balance Sheet. An audit also includes assessing the accounting principles used and significant estimates made by management. in the case of the Profit and Loss Account. of the cash flows for the year ended on that date. 1956. We conducted our audit in accordance with auditing standards generally accepted in India. and also the Profit and Loss Account and the cash flow statement of the Company for the year ended on that date. we report that none of the directors is disqualified as on 31st March 2005 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. In our opinion. In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. On the basis of the written representations received from the directors. We believe that our audit provides a reasonable basis of our opinion. Profit and Loss Account and the Cash Flow Statement read together with the notes thereon. Shah Partner Membership No. the said Balance Sheet. and taken on record by the Board of Directors. (d) (e) (f) (iii) in the case of the Cash Flow Statement. which to the best of our knowledge and belief were necessary for the purpose of our audit. and We have audited the attached Balance Sheet of ASIAN PAINTS (INDIA) LIMITED as at 31st March 2005. evidence supporting the amounts and disclosures in the financial statements. give the information required by the Companies Act. we state that: (a) We have obtained all the information and explanations.Auditors’ Report To the members of Asian Paints (India) Limited (c) The Balance Sheet. annual report 2004-2005 49 . Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our responsibility is to express an opinion on these financial statements based on our audit. we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order to the extent applicable. The Branch Auditor’s Report of Penta Division has been forwarded to us and has been appropriately dealt with. as well as evaluating the overall financial statement presentation. 8152 (b) Mumbai 11th May. 2003. 1956. incorporating therein accounts of Penta Division audited by Branch Auditors. in the manner so required 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.

Y.Annexure 1. 1956.Y. the frequency of verification is reasonable. clause 4 (iii)(f & g) are not applicable to the Company. packing materials.02 Second Appellate 8. cess and other statutory dues with the appropriate authorities. No material discrepancies have been noticed in respect of the assets physically verified during the year. (c) 2. The Company is maintaining proper records of inventory.1992-93 to F. 2004-05 0. Custom Duty. (a) (b) Name of of the Statute Sales Tax (b) The Company has not granted any loans during the year to the parties covered in the register maintained under section 301 of the Companies Act. 2000-01 to 2004-05 Total (A) Excise Central Excise Dispute Act 1944 relating to Cenvat Credit F. Sales Tax. and according to the information and explanations given to us. In our opinion and according to the information and explanations given to us. The procedures of physical verification of stocks followed by the management are adequate in relation to the size of the Company and the nature of its business.Y.Y.1995-96 and F. which in our opinion is reasonable. (a) (b) Referred to in paragraph 3 of the Auditors’ Report to the members of Asian Paints (India) Limited for the year ended 31st March 2005 under Section 301 of the Companies Act. The Company has not disposed off substantial part of fixed assets during the year.Y.1997-98 to 1999-2000 F.Y. Nature of dues Assessment Dues Financial Year F. We are of the opinion that prima facie the prescribed accounts and records have been maintained. In our opinion.Y. the contracts and arrangements entered in the register maintained 5.19 4. Inventories have been physically verified during the year by the management.Y. Excise Duty.Y. 2002-03 F. 1995-96 and F. F.55 0.Y. F.Y. in Millions) 47. Income Tax. (b) (c) 3. There is a regular program of physical verification. equipment and other assets and with regard to sale of goods and services. There is no major weakness in the internal control procedures.1997-98 and F.Y. 17. In view of clause 4 (iii)(e) of the Companies (Auditor’s Report) Order. The Company has not accepted any loans during the year from the parties covered in the register maintained under section 301 of the Companies Act.21 Adjudication level 7.Y. (b) 50 .56 High Court Tribunal 4. 1987-88 F. 2003. 1998-99 to F. Employees’ State Insurance. Investor Education and Protection Fund. 1991-92. 6.48 First Appellate F.Y. clause 4 (iii)(b.Y. 1956.1999-2000 F.Y. 2001-02 F. raw materials including components.1986-87 to F. 1956 and the rules framed there under.Y. F. Wealth Tax.1993-94.1993-94 to F. c & d) are not applicable to the Company.Y.1990-91. 1956 have been made at prices which are reasonable having regard to the prevailing market prices. 9.82 Second Appellate level Tribunal Amount (Rs.Y.1997-98 to F. We have broadly reviewed the books of accounts and other records maintained by the Company in respect of resins where pursuant to the rules made by the Central Government. 8. there are adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of stores. (a) The particulars of all contracts and arrangements referred to in section 301 of the Companies Act. The discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the books of account.08 Forum where dispute is pending First Appellate level The Company has maintained proper records showing full particulars including quantitative details and location of the Fixed Assets.Y. In our opinion. the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act.1996-97 and F.Y.1993-94 to F. In our opinion.Y.Y. plant and machinery. the maintenance of cost records have been prescribed under Section 209(1)(d) of the Companies Act. and according to the information and explanations given to us.09 0. Service Tax. In our opinion. the Company has an internal audit system commensurate with the size and nature of its business. Following dues are not deposited on account of disputes pending at various forums. 1956 have been properly entered in the register maintained under section 301 of the Act.1995-96 and F. In view of clause 4 (iii)(a) of the Companies (Auditor’s Report) Order. 2003. having regard to the size of the Company and the nature of fixed assets. (a) 7. 2004-05 72.1996-97 to F. (a) The Company is regular in depositing undisputed statutory dues including Provident Fund. 1956.

2000-01 and A. 2002-03 68.56 217.03-04 F. 18. no material fraud on or by the Company has been noticed during the year. The Company has not incurred cash loss in the current year and in the immediately preceding financial year and there are no accumulated losses in the balance sheet as on 31st March. 2005 H. F.1995-96.Y. debentures and other securities. F.94 Second Appellate Tribunal Adjudication level Dispute relating to Service Tax Total (B) Income Tax F. 2004-05 76. 2003-04 and F. 2003 is not applicable to the Company.Y. 2004-05 F.Y.1993-94.35 First Appellate 2. debentures and other investments.Y. securities. nidhi. Total (C) Grand To t a l 68. annual report 2004-2005 51 . Chartered Accountants Mumbai 11th May.Y.Y.2000-01 and F.Y. mutual benefit fund or society the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order.Y.32 0.Annexure Name of of the Statute Nature of dues Dispute relating to valuation Referred to in paragraph 3 of the Auditors’ Report to the members of Asian Paints (India) Limited for the year ended 31st March 2005 Amount (Rs.Y. banks or debenture holders. As the Company is not dealing or trading in shares.1996-97 to F. 16.Y.93 A.1997-98 and F. the provision of clause 4(xiv) of the Companies (Auditor’s Report) Order. 17.1992-93 to F.1999-2000 F.1986-87 and 14. The Company has not defaulted during the year in repayment of dues to any financial institutions.56 First Appellate 19.58 10. 11. 2003 is not applicable to the Company. As the Company is not a chit fund. For Shah & Co. 2005.Y.71 5. 12. the terms and conditions of these guarantees are not prejudicial to the interest of the company.Y. 21. 13.Y. N. Shah Partner Membership No.2002-03 F. F.Y. The Company has not granted any loans and advances on the basis of security by way of pledge of shares. The Company has not issued any debentures during the year. As per the information and explanation given to us. 2003-04 and F. In our opinion based on the information and explanations received.Y.1986-87 to F. The Company has not raised any money by way of public issue during the year. 47. 20. The Company has not taken any term loans during the year.Y. 8152 Asian Paints (India) Ltd. 15.3(a) & (b) of Schedule M to the financial statements. The Company has given certain guarantees on behalf of its dealers and subsidiaries as mentioned in Note B .Y. The Company has not made any preferential allotment of shares during the year. According to the information and explanations received the Company has not applied short term borrowings for long term use.Y. in Millions) 6.1988-89.79 Forum where dispute is pending Adjudication level Financial Year F.

Chartered Accountants H.609.315.23 885.31 82.27 E F 6.65 555.424.42 190.20 283.79 3.53 6.70 G 3. 2005 Ashwin S.444.511.04 4.866.03.53 81.89 1.83 2. in Millions) Schedules FUNDS EMPLOYED Shareholders’ Funds Share Capital Reserves and Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability (Net) (Refer Note B .77 305.838.106.12 727.73 486.03 3.112.45 787.35 Mumbai 11th May.2005 As at 31. 8152 M For and on behalf of the Board Ashwin C.117.56 6.087.086.195.03 4.73 3.35 959.41 229. Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May.49 3.88 4.20 4.27 in Schedule ‘M’) Total APPLICATION OF FUNDS Fixed Assets Gross Block Less : Depreciation/Amortisation/Impairment Net Block Add : Capital Work in Progress Investments Current Assets.114. N.2004 A B C 959.506.721.356.20 4.307.763.972.925.89 3.90 1. Shah Partner Membership No.78 3.20 245.489.25 5.09 2.93 3.127.70 7.33 2. 2005 (Rs.21 5.506. Loans and Advances Interest accrued on investments Inventories Sundry debtors Cash and Bank Balances Other receivables Loans and Advances Less : Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Total Notes As per our report of even date For Shah & Co.722.44 38.23 475.50 704.03 3.99 6.12 838.014.Balance Sheet as at 31st March.35 1. 2005 52 .84 0.63 210. Vakil Managing Director Tarjani Vakil Director D As at 31.00 5.32 1.405.03.584.866. Dani Vice Chairman & Managing Director Abhay A.34 0.379.38 6.26 637.

738.554. administrative.80 2.30 4.) Basic and diluted (Face value of Rs.015.00 988. on merger Add : Balance brought forward from previous year DISPOSABLE PROFIT DISPOSAL OF ABOVE PROFIT Dividend: Equity Shares .27 16.12 Abhay A.311.Profit & Loss Account for the year ended 31st March.05 16.441. 8152 For and on behalf of the Board Ashwin C.00 2.Final Tax on Dividend Transfer to General Reserve Balance carried to Balance Sheet Earnings per share (Rs.40 68.71 19.00 (18.144. in Millions) Schedules INCOME Sales and operating income (Net of discounts) Less: Excise Sales and operating income (Net of discounts and excise) Other income EXPENDITURE Materials Consumed Employees’ remuneration and benefits Manufacturing.477. Shah Partner Membership No.553.531. N.253.00 2.46) 1.82 --820.966.154.08 2.912.40 720.16 (3.60 104.23 9. annual report 2004-2005 53 .00 (44.10 2.554.750.04 1.47 820.34) 1.30 in Schedule ‘M’) Notes As per our report of even date For Shah & Co. Chartered Accountants H.56 3.17 in Schedule ‘M’) Less : Depreciation/Amortisation (Refer Note B . Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May.46 16.138.92 2.34 880.56 125.05 2.271.73 479.14 19.814.19 in Schedule ‘M’) PROFIT BEFORE TAX AND EXTRAORDINARY ITEM Less : Extraordinary item (Refer Note B . 2005 (Rs.06 2. Dani Vice Chairman & Managing Director M 383.15 316.00 2.31 2.10 each) (Refer Note B . DEPRECIATION.27 I D PROFIT BEFORE TAX Less : Provision For Current Tax Less : Provision For Deferred Tax Liability/(Asset) (Refer Note B .27 in Schedule ‘M’) PROFIT AFTER TAX AND BEFORE PRIOR PERIOD ITEMS Add/(Less) : Prior period items PROFIT AFTER TAX Add : Balance of Profit & Loss Account brought forward of Pentasia Investments Ltd.379.53 335. 2005 Asian Paints (India) Ltd.16) 1.206.15 52.82 18.23 in Schedule ‘M’) H Year 2004-2005 22.475.65 480.47 466.179.86 3.734.183.21 1.565. EXTRAORDINARY ITEM AND TAX Less : Interest (Refer Note B .00 2.69 527.477.50 1.731.46 216.206.000.39 3.87 8.77 17. 2005 Ashwin S. selling and distribution expenses PROFIT BEFORE INTEREST. Vakil Managing Director Tarjani Vakil Director Mumbai 11th May.54 476.36 518.29 J K L 11.31 42.415.07 1.708.Interim .02 14.82 Year 2003-2004 19.90 27.

54) 52.54 (3.00 476.573. tax and after extraordinary item Adjustments for : Depreciation Interest income Dividend income Interest expense Prior Period items Extraordinary item Loss/(Profit) on Sale of Long Term Investments Loss/(Profit) on Sale of Short Term Investments Loss/(Profit) on Sale of Assets Operating Profit before working capital changes Adjustments for : Trade Receivables Other Receivables Inventories Trade and Other Payables Cash generated from Operations Income Tax paid net of refund Net Cash generated from Operating Activities Cash Flow from Investing Activities Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments Sale of Investments Interest received Dividend received Net Cash used In Investing Activities Cash Flow from Financing Activities Proceeds from long term borrowings Proceeds from short term borrowings Repayment of long term borrowings Repayment of short term borrowings Interest paid Dividend and Dividend tax paid 2003-2004 2.44) 3.68) (93.097.311.31 (0.53 210.01) (1.99) 670.56) 1.863.52 (782.52 2.11) 245. Net (Decrease) / Increase in Cash Cash and cash equivalents as at 01.434.26 (110.2005 As per our report of even date For Shah & Co. 2005 (Rs. N.53 B. Dani Vice Chairman & Managing Director Abhay A.16 15.43) (52.708.04. 2005 Ashwin S.82) 112.14 (774.78) (35.40) 271.94) 818.63 3.19) 2.229. Net Cash used in Financing Activities D. Shah Partner Membership No.78) 27.03.25 2.65) 3.50) (23. Cash Flow from Operating Activities Profit before prior period item.03) (1.07 68. in Millions) 2004-2005 A.06) (45. Vakil Managing Director Tarjani Vakil Director Mumbai 11th May.14 37. 2005 54 .92) (29.230. Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May.192.10 (37. Chartered Accountants H.47) 134.21) (868.216.60 (988.86 176.62) 93.Cash Flow Statement for the year ended 31st March.426.94 (90.39) (1.59) (215.88 8.38) (246.48 (204. C.78 (739.04 90.34) 42.16) (86.06 (0.70 (853.34 480.31) 17.65 2.33 (322.90) (27.93 245.42 2.43) (37.05 (7.47 (299.54 93.06) (15.52) 138.29) (974. 8152 For and on behalf of the Board Ashwin C.83 (288.54 (1.95) 11.91) (26.2004 Cash and cash equivalents as at 31.94) (846.

10/.Schedules forming part of the accounts (Rs.000 shares of Rs.00 4.757.20 959.488. 100/.356.each fully paid up issued on capitalisation of Share premium (Rs.000 Equity Shares of Rs.00 4.000.98 million).50 820.91 million) and General Reserves (Rs.20 959. without payment received in cash.70 518.20 SCHEDULE B : RESERVES AND SURPLUS Capital Reserve Capital Redemption Reserve General Reserve As per last Balance Sheet Add : Transfer from Profit and Loss Account Add : Transfer from Debenture Redemption Reserve Add : Excess deferred tax liability created in 2001-2002 transferred back Less : Capitalised for issue of Bonus shares Less : Net reduction on account of merger of Pentasia Investments Ltd. 2004 (Refer Note B .20 959.01 5.00 3.56 466.each fully paid : a) 93.000 11% Redeemable Cumulative Preference shares of Rs.03 3.03.50 (42.779 Equity Shares of Rs.989.21) ----3.each 995.488.2005 As at 31.500.00 0.25 50. 294.00 1.25) 42.19 in Schedule ‘M’) Add : Reduction in deferred tax liability on impairment of assets (Refer Note B .00 5. 995. Less : Provision for impairment of fixed assets as on 1st April.000.21 42.each 50.00 Issued and Subscribed 95.56 (320.03. in Millions) As at 31. 10/.21 Asian Paints (India) Ltd.00 1.2004 SCHEDULE A : SHARE CAPITAL Authorised 99.940 Bonus Shares of Rs.50 ------(454.215.19 in Schedule ‘M’) Debenture Redemption Reserve As per last Balance Sheet Less : Transfer to General Reserve Profit and Loss Account 0.47 141. 10/.00 b) 959.45) 163.00 3. 21.99 42..763. annual report 2004-2005 55 .75 (141.70 183.000. 10/.01 5.919. 917.each issued as fully paid up pursuant to the Scheme of Rehabilitation / Amalgamation of Pentasia Chemicals Ltd.00 5.50) --1.93) (64.

Ankleshwar and Patancheru.32 0. subject to prior charge in favour of the Company’s bankers.18 176. 3) Foreign Currency Loan (Note No.05 475. (PICUP) under Sales Tax deferment scheme of U.50 Notes: (1) Nil.00 85.22 --188.825).05 --- 56 .State of Andhra Pradesh (Note No..83 229. Sales tax deferment .60 555.94 363. excluding inventories at the above locations. 3) Unsecured Loans Long Term : Fixed Deposits (Repayable within one year Nil . (3) (4) Secured by hypothecation of inventories.State of Andhra Pradesh represents interest free loan availed under the Sales Tax deferment scheme of the Government of Andhra Pradesh. 2) Short Term : Loans and advances from banks Cash Credit Accounts (Note No.94 --283.71 106.03.01 190.00 53. Debentures were secured by pari passu charge on the Company’s movable and immovable properties pertaining to the paint plants situated at Bhandup.40 --90.12 3.71 85.75% Non-Convertible Debentures (Note No.2005 As at 31. ----- 85. 4) --106. 100.000/.00 106.each privately placed redeemable at par.30 363.12 282. in Millions) As at 31. Ltd. Amount repayable within one year. book debts and other current assets..2004 SCHEDULE C : SECURED AND UNSECURED LOANS Secured Loans Long Term : Debentures 13.850) 13.P. 0.65 --90.40 176.83 282. Amount repayable within one year. (Previous year .75 % Secured Redeemable Non-Convertible Debentures of Rs.60 --- 53. 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.Schedules forming part of the accounts (Rs.State of Uttar Pradesh) (Note No. Amount repayable within one year.17 million) Interest accrued and due Trade deposits .71 11.Interest free Sales tax deferment .40 138. 850 debentures were redeemed during the year (Previous year .Previous year Rs.23 3.P. 1) Loans and advances Financial Institution (Sales tax deferment scheme .03. (2) Interest free term loan from the Pradeshiya Industrial Corporation of U.

661.14 10.05 16.12 987.08 40.19 7.06 1.33 ----1.12 10.27 178.19 Schedule ‘M’) (Rs.57 61.03.95 39.2004 31.80 6.19 2.24 143.405.89 --248.2005 Upto 31.098.92 35.68 20.67 434.03.305.31 61.61 23.30 44.19 990.85 32.29 90.05 2.61 12.95 1.51 262.85 15.24 137.85 16.080.44 Total 6.29 7.01 1.72 100.08 90.2004 As at 31.99 2.28 1.52 555.84 0.39 253.41 91.58 459.21 --248.40 133.50 5.65 5.25 45.60 4.85 63.49 ----454.2005 Additions during the year Deductions and/or transfers During the year Deductions and/or transfers Schedules forming part of the accounts 40.29 15.24 285.37 26.10 6.49 2.20 4.99 3.90 748.336.48 267.560.42 162.04 3.78 7.19 1.04.34 74.50 3.SCHEDULE D : FIXED ASSETS Gross Block Depreciation/Amortisation Impairment As at As at 01.127.583.41 12.53 206.17 2.2004 As at 01.33 495.51 23.106.40 57.62 827.76 480.67 3.41 132.03.63 192.03. annual report 2004-2005 57 .79 90.76 130.04.03.96 18.04 3.43 0.68 1.55 --- --- 3.68 14.License fees 119.28 3.21 54.10 Tangible Assets : Freehold Land Leasehold Land Buildings Plant and Machinery Scientific Research : Equipment Buildings Furniture and Office Equipment Vehicles Leased Assets : Equipment Intangible Assets : Trademark Software .93 Previous year 6.106.405.96 40.25 2.309.83 10.07 3.93 476.97 20.88 0.65 5.54 9.37 81.112.511.655.79 243.92 8.82 36.2005 As at 31.09 2.45 ----454.97 0.63 --21.29 ---21.42 156.2004 As at 31.024.00 236.53 --------------------- ------178.33 4.22 ------- ----22.82 8.44 Asian Paints (India) Ltd.574.081.2005 (Refer Note B .48 2.55 9.10 5.71 40.98 2.45 37.27 35. in Millions) Net Block As at 31.511.73 3.89 119.03.05 56.56 116.34 81.

1990 (370 units redeemed during the year) (b) Contribution to Gujarat Venture Capital Fund 1990 (5% amounting to Rs.79 1.00 30. 2.000) (ii) Trade Investments (Preference shares) 9% Preference shares of Multitech Plast Containers Ltd. --(190.00 US $ 1/- 1.000 (8. Indira Vikas Patra and Defence Certificates deposited with Government authorities.35 154. Mauritius (2.000 shares allotted during the year) --(370) 100/- --- 0.900 (e) SIPCOT Common Utilities Ltd.945. (b) Equity shares of Asian Paints Industrial Coatings Ltd.5% tax free Bonds of Konkan Railway Corporation Ltd. (25.010. (National Savings Certificate sold during the year Rs..05 0.10 ----146.000) 24.10 1.85 90.000 redeemed during the year) (c) 10.28 4.90 1.184.13 0. Subsidiary Companies (a) Equity shares of Technical Instruments Manufacturers (India) Ltd.444 (22.935.510.85 80. 14.01 25. (1.000) (b) Ricinash Oil Mill Ltd.79 (v) 5.) As at 31.500 1.10 146.000.000. in Millions) Nos.25 0.03.000 bonds redeemed during the year) (d) Equity shares of Mark Auto Industries Ltd.Schedules forming part of the accounts (Rs.09 25.64 5.094.000 (iii) Trade Investments (Fully paid Equity shares) (a) Multitech Plast Containers Ltd.00 5.00 181.2004 SCHEDULE E : INVESTMENTS Long Term Investments Unquoted (i) In Government Securities National Savings Certificates.000 shares allotted during the year) (c) Ordinary shares of Asian Paints (International) Ltd.07 10/10/10/10/10/100/10/- 25.25 0.09 0. 20. 2.000 (d) Patancheru Enviro-tech Ltd.01 (iv) Other Investments (a) Units of Unit Trust of India under Venture Capital Unit Scheme .000 shares sold during the year) (110.28 4. 25.000) 62.000/10/- --5.444) 100/10/- 181.625. 434.000 9.830 (f) Bharuch Eco-Acqua Infrastructure Ltd.03.91 58 . Face value (Rs.11 --(25.000 Shares sold during the year) (190.000) (c) Asian PPG Industries Ltd.35 151.2005 As at 31.000. --(110.04 0.13 0. 12.790 0.

Dividend Option acquired during the year 15.09.03 Total long term unquoted investments Quoted (Fully Paid Equity shares) (i) Trade Investments ICI (India) Ltd.829.755) ----1.24 111. in Millions) Nos.24 0.24 --As at 31.01 151.13 (68.384.084.220 units sold during the year) Birla Cash Plus Institutional Plan Growth (11.418 10/10/- 1.611.036.131.996.84 Total long term quoted investments Total long term investments Short Term Investments (Unquoted) DSP Merrill Lynch Liquidity Fund Growth Plan (13. annual report 2004-2005 59 . Mauritius.24 0.27 924.94 1. Apcotex Lattices Ltd.000 3.05 Asian Paints (India) Ltd. Face value (Rs.06 1.06 1.81 2.829. Ltd.424.03.88 1.370) 10/- --- 20.584. Figures in brackets indicate that of previous year.770 --(6. (6.481.Schedules forming part of the accounts (Rs.11 773.783 10/- 772.2004 1.760.755 shares sold during the year) Less: Provision for diminution (Refer Note B .727 Total Short Term Investments Total Investments Aggregate market value of Long term Quoted Investments : Notes : 1.81 2. 3.457.) NRs 10/MRs 10/As at 31.99 ----40.76.00 Birla Cash Plus Institutional Premium Plan Dividend .2005 1.00 2.370 units sold during the year) --(13.06) 43.670.036. 10/10/- 20.00 10/- --- 20..11 773. Nepal Ordinary shares of Asian Paints (Mauritius) Ltd.639.477.220) --(11.670.32 171..76.23 in Schedule ‘M’) 1. (ii) Other Investments Housing Development Finance Corporation Ltd.12 (d) (e) Equity shares of Asian Paints (Nepal) Pvt.84 748.412.46 772.46 93.03.acquired during the year 1.33 2.401.315 JM Fixed Maturity Plan .09.

000.00 10.655.52 110.00 10.Monthly Plan .02 330.Dividend (4) Deutsche Insta Cash Plus Fund .00 90.00 10.000.00 100.00 250.00 10.972.209.000.Monthly Plan -8 .887.609.307.00 420.000 15.735 31.00 90.045 631.00 302. in Millions) 440.515.000.Monthly Plan .Monthly Plan .Growth (16) Reliance Fixed Term Scheme .Growth (29) Tata Liquid Super High Investment Fund .410.Super Inst Plan C .Growth (7) Grindlays Cash Fund .325.000 15.00 10.297.Growth (13) Prudential ICICI Liquid Plan .24 1.00 1.45 2.00 90.00 10.434.Growth (12) Prudential ICICI Institutional Liquid Plan .00 10. LOANS AND ADVANCES CURRENT ASSETS (i) Interest accrued on investments (ii) Inventories .30 5.12 202.000.12 Growth (21) Reliance Fixed Term Scheme .Monthly Plan .680 32.000 25.244.000 10.00 60.314.671.00 60.00 390.818.000.00 392.024.03.000 10.00 60.82 50.17 Dividend (26) SBI Magnum Insta Cash Fund .533.00 10.Growth (11) HSBC Cash Fund Institutional Plan .00 570.411.00 10.414 119.00 150.9 .468.Cash Plan (27) SBI Magnum Institutional Income Fund-Savings .760 24.000 15.00 10.Growth (8) HDFC Cash Management Fund .320.00 420.784.14 Growth (23) Reliance Fixed Term Scheme .00 10.915.043.00 10.) 10.Growth (18) Reliance Fixed Term Scheme .000.Dividend (10) HSBC Cash Fund .00 10.66 283.764.114.00 100.000.25 100.000.89 0.304.00 10.90 60 .00 243.000 6.039 10.76 1.Growth (5) Deutsche Insta Cash Plus Fund-Institutional Plan .000 20.00 10.00 10.00 10.391 30.065 Face Value (Rs.13 Growth (22) Reliance Fixed Term Scheme .00 10.03.240.005.Schedules forming part of the accounts 2.00 10.Institutional Plus .206.750 9.63 3.16 Dividend (25) Reliance Fixed Term Scheme .000.00 150.831.00 150.00 10.11 160.Monthly Plan .000.Appreciation (30) Tata Liquid Super High Investment Fund .492 26.526 33.14 164.Monthly Plan .610.184.475 26.289.720.00 (Rs.227 8.Growth (20) Reliance Fixed Term Scheme .000.00 10.83 517.00 10.32 160.000.084.353.Daily Dividend (32) Templeton India Treasury Mgmt A/c Inst Plan .310 10.00 10.380 81. spares and fuel (f) Other traded items 832.Monthly Plan -10 .Growth (3) Birla Cash Plus .valued and certified by the Management (a) Raw materials (b) Packing materials (c) Finished goods (d) Work-in-process (e) Stores.000.918. The following investments were purchased and sold during the year : Nos.Institutional Plus .806.687 48.Monthly Plan -7 .Monthly Plan .00 10.917 6.000.075.00 10.427 21. in Millions) As at 31.Growth (14) Prudential ICICI Liquid Plan Institutional Plus .14 6.00 10.00 10.000 27.521.2004 SCHEDULE F : CURRENT ASSETS.00 Purchase Cost (Rs.00 10.2005 As at 31.Growth (17) Reliance Fixed Term Scheme .103 5.839 158.00 10.03 0.536 84.087 31.455.00 200.Institutional Premium Plan Growth (2) Birla Cash Plus .000.Institutional Premium Plan .Institutional Plan .42 65.Dividend (28) SBI Magnum Institutional Income Fund-Savings .Growth 43.555.541.Daily Dividend (31) Tata Liquid Super High Investment Fund .216.00 230.470.15 Dividend (24) Reliance Fixed Term Scheme .652.Growth (9) HSBC Cash Fund .000.000 6.00 170.00 850.00 270. Units in Mutual Funds (1) Birla Cash Plus .000.Growth (19) Reliance Fixed Term Scheme .456.00 1.Dividend (15) Prudential ICICI Liquid Plan Institutional Plus .000.Savings Plan .10 500.000.501.Growth (6) DSP Merrill Lynch Liquidity Fund .40 1.00 10.

26 13.63 1.63 245. 100.00 77. Company in which directors are interested Hitech Plast Ltd.00 million) Technical Instruments Manufacturers (India) Ltd.79 Asian Paints (India) Ltd.66 206.30 (iii) 141. 1. Previous year Rs.29 39. Previous year Rs.88 4.42 190.34 57.50 million) Other Loans and Advances : Unsecured and considered good (a) Balances with Customs.25 5.468.99 --60.Secured and considered good Asian Paints Industrial Coatings Ltd.39 1.32 187.67 199.00 million.Unsecured and considered good (Maximum outstanding during the year Rs.489.81 1.97 24.97 63. (Maximum outstanding during the year Rs.77 --105.69 million.12 24.45 32.10 28. (Maximum outstanding during the year Rs.03.609.02 million).45 Cash and Bank Balances (a) Cash on hand (b) Balances with Scheduled Banks : (i) Current Accounts (ii) Term Deposits (iii) Cash Credit Accounts Other receivables Wholly owned subsidiaries (a) Interest free loan . in Millions) As at 31.45 1.2004 21.2005 (iii) Sundry debtors (Unsecured) (a) Outstanding for more than six months Considered good Considered doubtful Less: Provision for doubtful debts (b) (iv) Other debts (Considered good) As at 31. 60.34 32.89 21.23 727.02 137.00 85.Schedules forming part of the accounts (Rs.29 3.18 1.62 --210.15 7.20 2.43 42.48 26.89 54.30 million.03.354.379.69 (ii) --- 1. . Central Excise etc. 85.69 145. Previous year Rs.07 590.15 640.78 38.925.41 241.32 200.02 60. 60.81 38. annual report 2004-2005 61 .14 2. (b) Income Tax refund receivable (c) Sundry deposits (d) Advances/claims recoverable in cash or in kind (e) Advances to employees (f) Share application money (g) Advances against capital expenditure (h) Other advances to subsidiaries (v) (i) LOANS AND ADVANCES 60.53 81.97 4.35 115.89 787. 2.

97 885.35 1.36 1.44 19.99 136.117.31 1.65 3.787.26 in Schedule ‘M’) 527.92 0.26 in Schedule ‘M’) Other provisions (Refer Note B .2005 As at 31.72 334.60 61.87 1.26 62 . 60.15 912.2004 SCHEDULE G : CURRENT LIABILITIES AND PROVISIONS Current Liabilities (i) Acceptances (ii) Sundry creditors Trade Others (Out of the above. 2005. Proposed Final Dividend Provision for tax on Proposed Final Dividend Provision for tax (Net of advance tax) Provision for Leave encashment (Refer Note B .31 271.03 1.80 million due to Directors Previous year Rs.18 2.21 18. (Refer Note B .31 0. 48.22 in Schedule ‘M’) Investor Education and Protection Fund * (a) Unpaid / Unclaimed dividend (b) Unpaid / Unclaimed matured deposits (c) Unclaimed interest (d) Unclaimed amount of sale proceeds of fractional coupons of bonus shares Interest accrued but not due Other liabilities (Including Rs.53 million . These amounts shall be paid to the fund as and when they become due.838.119.391. the total outstanding dues to small scale industrial undertakings are Rs.41 21.75 1.23 (iii) * Provisions (i) (ii) (iii) (iv) (v) 479.42 (iv) (v) 0.31 123.47 2.087.02 0.32 1.342.677.03.187.972.63 796.03. 17.10 19.45 2. There is no amount due and outstanding to be paid to the Investor Education and Protection Fund as at 31st March.Schedules forming part of the accounts (Rs.01 million).38 0.109.81 3.03 3.75 126.75 million).85 878.70 217. in Millions) As at 31.56 73.78 0.03 4.721.52 0.42 252. 14.Previous year Rs.

22 million .20 in Schedule ‘M’) Profit on sale of long term investments (net) Profit on sale of short term investments (net) Profit on sale of assets (net) (Refer Note B .20 19. 0.34 216.Previous year Rs.92 SCHEDULE I : OTHER INCOME Interest (Refer Note B .61 million) Dividend from long term investments Trade Others Dividend from short term investments Royalty (TDS Rs.89 40.37 1.14 0.Schedules forming part of the accounts (Rs.57 0.72 20.93 million) Claims received Dividends from subsidiary companies (TDS Rs.59 13.Previous year Rs.531.672.388.455.013.21 in Schedule ‘M’) (TDS Rs.315.34 70.11 316.64 138. 0.84 0.80 127. 0.7 in Schedule ‘M’) Less : Discounts Sales (Net of discounts) Processing charges Lease Rent Revenue from Home Solutions operations 23.52 23.10 83.20 188.52 34.43 26.246.Previous year Rs.533.28 1.85 22.27 million . annual report 2004-2005 63 .62 78. 4.553.32 69.50 23.68 3.15 19.32 8.90 27.44 0.77 Asian Paints (India) Ltd.86 20.06 0.18 27.538.073.49 1.89 110.65 --9.28 8. 1.81 78.79 23.05 22.21 278.02 5.01 1.52 1.68 million .16 283.09 million) Sundry balances written back (Net) (Refer Note B .11 20.42 37.259.70 47. in Millions) Year 2004-2005 Year 2003-2004 SCHEDULE H : SALES & OPERATING INCOME Sales : Home Market Exports Less : Goods returned Turnover (Refer Note B . 0.41 5.25 in Schedule ‘M’) Exchange difference (net) Miscellaneous income 7.

93 2.14 9. provision for bonus and accrued leave salary Staff welfare expenses Contribution to Provident Fund.627.66 11.72 10.51 198.66 9.549 MT) Cost of other goods sold Add / (Less) : Decrease / (Increase) in finished and semi-finished stocks Opening Stock Closing Stock 517.86 832.30 848.515.85 283.231 MT .65 568.24 2.61 7.06 123.269.120.09 182.62 9.93 (58.82 1.14 7.035.56 64 .20 517.54 64.463.61) 11.500.752.897.154.376.30 164.04 1.25 1.437.40 140.318.51 1.Schedules forming part of the accounts (Rs.50 SCHEDULE K : EMPLOYEES’ REMUNERATION AND BENEFITS Salaries.20 164.75) 9. allowances.318.015.154.67 112.36 1.18 1.Previous year 11.179.751.76 2.032.70 242.587.59 8.24 1.54 (743.07 54.06 199. in Millions) Year 2004-2005 Year 2003-2004 SCHEDULE J : MATERIALS CONSUMED Raw Materials Consumed Opening Stock Add : Purchases and expenses Less: Closing Stock Packing Materials Consumed Opening Stock Add : Purchases and expenses Less : Closing Stock Purchase of Paints for resale (Quantity 10.79 1.61 2. Gratuity Fund and Superannuation Fund 974.376.441. wages. commission.

38 133.54 3.05 9.03 --279.144.28 129.42 785.01 159.88 121.87 25.37 33. annual report 2004-2005 65 . in Millions) Year 2004-2005 Year 2003-2004 SCHEDULE L : MANUFACTURING.52 38. ADMINISTRATIVE.52 217.73 147.76 126.12 4.26 41.15 171.06 33.76 34.49 177.96 3.30 697.88 18.01 3.28 836.12 27.08 140.05 111.30 133.84 109.27 4.90 3.88 99. stationery and communication expenses Travelling expenses Commission on sales Donations Loss on sale of assets (net) Miscellaneous expenses (Refer Note B .41 699.23 63. SELLING AND DISTRIBUTION EXPENSES 100.06 9.34 12.17 908.24 1.85 47.02 4.30 107.02 Stores and spares Power and fuel Processing charges Freight and handling charges Repairs and maintenance: Buildings Machinery Other assets Rent Rates and taxes Insurance Advertisement and sales promotional expenses Cash discount and Payment performance discount Printing.00 254.89 228.34 19.79 10.18 158.12 --28.814.35 9.24 in Schedule ‘M’) Commission to Non executive directors Directors’ sitting fees Bad and doubtful debts Auditors’ remuneration Financial charges Information technology expenses Legal and professional expenses Asian Paints (India) Ltd.Schedules forming part of the accounts (Rs.35 96.74 682.

the depreciation charge for the asset is adjusted in future periods to allocate the asset’s revised carrying amount. is included in the cost. If any such indication exists. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED IN THE COMPILATION OF ACCOUNTS Basis for preparation of financial statements The financial statements are prepared in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards specified by the Institute of Chartered Accountants of India under section 211(3C) of the Companies Act. Lease Accounting The Company has provided tinting systems to dealers on an operating lease basis. Leasehold land is amortised over the period of lease. Lease rentals are accounted on accrual basis in accordance with the respective lease agreements and any variation thereof. duties (net of tax credits as applicable) and other identifiable direct expenses. 1956. 1. Interest on borrowed funds attributable to the qualifying assets up to the period such assets are put to use. 66 .Schedules forming part of the accounts SCHEDULE M: NOTES ON BALANCE SHEET AND PROFIT AND LOSS ACCOUNT A. the asset’s recoverable amount is estimated. less its residual value (if any). which is on despatch of goods. where the depreciation is provided under Straight Line Method based on estimated useful life of the assets as under: Information Technology Assets Scientific Research Equipment Furniture and Fixtures Office Equipment and Vehicles f) Intangible Assets i) ii) g) User licence fees for major software are amortised over a period of four years. Trade Mark is amortised over a period of five years. 3. Revenue Recognition Sale of products is recognised when the risks and rewards of ownership are passed on to the customers. Depreciation on tinting systems except computers leased to dealers is provided under Straight Line Method over the estimated useful life of nine years as per technical evaluation. on Straight Line basis over its remaining useful life. 2. Processing income is recognised upon rendition of the services. 1956 except for the following classes of fixed assets. Method of Accounting The Company is following accrual basis of accounting. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. which includes taxes. 4. : : : : 4 years 8 years 8 years 5 years b) c) d) e) At the balance sheet date. Fixed Assets a) The ‘Gross Block’ of fixed assets is shown at the cost of acquisition. Sales are stated exclusive of sales tax. Depreciation on computers given on lease is provided under Straight Line Method and at rates specified under Schedule XIV to the Companies Act. Depreciation on all other fixed assets is provided under Straight Line Method and at rates specified under Schedule XIV to the Companies Act. After recognition of impairment loss. Dividend income is recognised when the right to receive dividend is unconditional at the balance sheet date. designs and drawings of buildings or plant and machinery is capitalised under the relevant asset heads. Know-how related to plans. an assessment is done to determine whether there is any indication of impairment in the carrying amount of the Company’s fixed assets. 1956. 5.

annual report 2004-2005 67 . Research and Development a) b) Capital expenditure is shown separately under respective heads of fixed assets. the difference between the forward rate and the exchange rate on the date of the transaction is recognised as income or expense over the life of the contract. Transactions not covered by forward contracts and outstanding at year end are translated at exchange rates prevailing at the year end and the profit/loss so determined is recognised in the Profit and Loss Account. Damaged. Asian Paints (India) Ltd. Traded goods are valued at cost on weighted average basis. d) 7. Investments Short term investments are carried at the lower of cost and fair value computed category wise. 11. 10. 1961 taking into account available deductions and exemptions. In case of raw materials. unserviceable and inert stocks are suitably depreciated. packing materials. pending approval at the Annual General Meeting. stores. Liability for Gratuity and Leave encashment benefits are charged to Profit and Loss Account on the basis of actuarial valuation. 8. 9.Schedules forming part of the accounts 6. wherever applicable) and is arrived at on weighted average cost basis. 12. Long term investments are carried at cost. spares and consumables. the cost includes duties and taxes (net of CENVAT. an appropriate share of fixed and variable production overheads on the basis of standard cost method. yet to be quantified at the customer level are included under the head ‘Current Liabilities and Provisions’. Adequate provision is made for debts considered doubtful. 13. excise duty as applicable and other costs incurred in bringing the inventories to their present location and condition. packing materials. Sundry Debtors Sundry debtors are stated after writing off debts considered as bad. Proposed Dividend Dividend proposed by the Board of Directors is provided for in the accounts. Revenue expenses including depreciation are included under the respective heads of expenses. In respect of transactions covered by forward exchange contracts. Provision for diminution in the value of long term investments is made only if such a decline is not temporary in the opinion of the management. Cost of finished goods and work-in-process includes the cost of raw materials. Inventory a) b) c) Inventories are valued at the lower of cost and net realisable value. Discounts due. Deferred tax is recognised for all timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Employees’ Retirement Benefits Company’s contribution to Provident and Superannuation funds and Pension is charged to Profit and Loss Account on accrual basis. Provision for Taxation Provision for current tax is computed as per ‘Total Income’ returnable under the Income Tax Act. Transactions in Foreign Exchange Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transactions.

17% of Profit before taxes for each of the Executive Directors) Contribution to Provident and Superannuation funds Perquisites Sitting Fees to Non-Executive Directors Commission to Non-Executive Directors The above remuneration does not include contribution to gratuity fund and leave encashment as this contribution is a lump sum amount based on actuarial valuation.29 1.16) 35.743.57 0.03 25.07 0.28 26.79 4.79 509.05 Contingent liabilities: (a) Guarantee given on behalf of Company’s dealers in respect of loans granted to them by a bank for acquiring tinting systems (b) Corporate guarantee issued by the Company on behalf of its subsidiaries (c) Claims against the Company not acknowledged as debts: (i) Tax matters in dispute under appeal (ii) Others Auditors’ remuneration (including service tax.16 million) (a) Computation of Profit for the year ended 31st March. 1956.72 --2.08 0.46) 29. 1956 Salaries and allowances Commission to Executive Directors (0. NOTES : 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 31.06 2.72 6.40 0.59 7.40 1.16 988.77 769.344.56 879.01 1. 2003-2004 86.06 4.50 23.07 378.29 30.738. 5. The above higher value of depreciation has been considered as deduction for the computation of managerial remuneration in (a) above.52 3. wherever applicable) Statutory audit fee Tax audit fees Certification fees Out of pocket expenses Cost audit fees Branch audit fees In addition. 1956.78 22.17 231.64 417.65 --68.71 3.03.07 2. 3.80 880.652.34) 2. 2.52 2.50 1.71 68 .42 1.88 13. The Company depreciates certain fixed assets at higher rates of depreciation based on estimated useful lives which are lower or equal to the implicit estimated useful lives prescribed by Schedule XIV of the Companies Act.37 0.12 29.98 --3.53 4. 0.72 0.475.24 35.68 116.15 million for taxation services during the year (Previous year Rs.272.94 451.60 0. in Millions) 2004-2005 B.80 5.30 11.38 0.Schedules forming part of the accounts (Rs. an associate firm of the statutory auditor’s firm has been paid Rs.84 0.21 279.31 (3.05 4.12 227.1956 Commission to Non-Executive Directors: Subject to a ceiling of 1% of profit as computed above Commission actually paid Remuneration to Wholetime Directors: Subject to a ceiling of 10% of profit as computed above Total remuneration actually paid (b) Details of managerial remuneration under Section 198 of the Companies Act.00 (18.24 3.24 265.73 3. 0.00 (44.85 0.90 27. 1. 1. Net Profit as per Profit and Loss Account Add : Provision for taxation Provision for deferred tax Managerial remuneration Loss on sale of assets (net) Less : Surplus on sale of long term investments (net) Surplus on sale of short term investments (net) Profit on sale of assets Extraordinary item (Refer Note 23) Prior period items (net) Profit under Section 198 of the Companies Act.87 0.01 1. 2005 under section 349 of the Companies Act.60 11.91 26.44 42.

resale of finished paints and dealer tinting systems purchased.36) 61. Pentaerythritol.12 (1216.40 315 (1. Includes 2926 MT (Previous Year 2398 MT) Pentaerythritol transferred to paint plants for captive consumption.93 1936 (61.68 (106. Asian Paints (India) Ltd.49) Includes sale of materials processed outside. enamels.43) 306. Includes 9166 MT (Previous Year 7695 MT) Phthalic Anhydride transferred to paint plants for captive consumption. Figures in brackets are for the previous year.23 12709 (4.02) --1216. Patancheru. in millions) (a) Paints.70 (36.49) 172.23) (1129) 3.09) (2319) 0. Value (Rs.14) (13975) 35. Value (Rs. This comprises of resins. machinery spares. in millions) Closing Stock Qty.98 (2. Kasna and Sriperumbudur.66) 0.98) (672) ----1918.02 275252 (1148. Three shift working for Synthetic Resins. Sodium Formate and Formaldehyde.59 (19195.02) 31004 (21353) 411 (102) 421 (930) 223 (6) 51 (191) --- 1858. stationery items.48) 1. (As per certificate given by the Management). enamels.14 (8. seven days a week.00 (602. MT/KL MT MT MT MT 21353 (22549) 102 (181) 930 (214) 6 (95) 191 (134) --- 1148.23 (17. 2004 240150 Production 2004-2005 220284(2) 2003-2004 187221(2) (b) (c) (d) (e) (f) (i) (ii) Synthetic Resins (For mainly captive consumption) Phthalic Anhydride Pentaerythritol Sodium Formate Formaldehyde (50%)(6) --77880 24000 3000 1800 13500 --70600 24000 3000 1800 13500 71776 84306(3) 22183(4) 4430(5) 2505 10598 61215 74831(3) 21592(4) 4235(5) 2230 10570 Capacities are expressed in terms of : Double-shift working for a period of nine months and three shift working for the remaining period of three months in the year for Paints. Stocks and Turnover : Opening Stock Unit Qty. varnishes and blacks MT/KL In-house(1) Contract Manufacture/ Purchase MT MT MT MT MT In-house(1) Ankleshwar Cuddalore Cuddalore Cuddalore 300150 As at 31st March. Production : Unit Location Installed Capacity As at 31st March.67 (1151. throughout the year. plant and machinery. 2005 (a) Paints.43) 37. in millions) Turnover * Qty. 7.37 (307. Includes 3573 MT (Previous year 3029 MT) of resins processed for third party. ii.54 2088 (0. Includes 6958 MT (Previous year 6275 MT) of products processed for third party. Value (Rs. Mainly for internal consumption in the manufacture of Pentaerythritol.09 (1.03 (10. dealer tinting systems and other miscellaneous items. Phthalic Anhydride.92) 3.60) 674. Ankleshwar.11) 22194. (1) (2) (3) (4) (5) (6) Manufacturing plants at Mumbai.11 (1181.Schedules forming part of the accounts 6. varnishes and blacks (b) Phthalic Anhydride (c) Pentaerythritol (d) Sodium Formate (e) Formaldehyde (50%) (f) Others (Refer Note (ii) below) Total * i.37 (20259.62) 23388. annual report 2004-2005 69 .50) 4.67) (243148) 20.

515.42 9.437.20 } 941. 1.42 383.314 47.55 64.58 130.00 11.40 542.10 100. Raw materials consumed : 2004-2005 Unit (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) 9.60 34.632 6.442 Value (Rs.581 8.699.89 80.692 3.35 100. in millions) Number of Non-resident Shareholders 21 21 ----2003-2004 Number of Equity Shares held 60.737.08 MT MT MT KL MT MT MT MT MT MT MT Qty. in millions) 1.514 6. Minerals etc. in millions) % to Total 2003-2004 (Rs.492 90.00 27.426.515. Net dividend remitted in foreign currency : 2004-2005 Number of Non.19 2003-2004 (Rs.741 9.65 72.983 5.994 14.98 111.458.59 million) Stores and spares : Direct imports Others 1.59 100.06 18.65 72.114 2.39 0.79 956.41 7.734 ----Dividend remitted (net of tax) (Rs.00 16.45 763.27 2003-2004 Qty. Additives Solvents Resins Oils Ortho Xylene Methanol Acetaldehyde Monomers Others CIF value of direct imports : 2004-2005 (Rs.97 million Previous year Rs.902 7. 800.57 5. Raw materials Packing materials Stores and spares Capital goods Value of imported and indigenous raw materials and spares consumed and percentage of each to total consumption : 2004-2005 (Rs.72 1.481 1.99 7.17 913.16 111.659 1.74 229.14 70 .Schedules forming part of the accounts 8.431 ----0.24 40.16 345.71 29.206 23.282 11.40 450. in millions) 0.00 6.35 100.50 7.031 35.49 18.62 19.038. in millions) 3. in millions) 1. Extenders.36 21.219.91 92.74 704.933 20.60 100.Number of Dividend resident Equity Shares remitted Shareholders held (net of tax) (Rs.32 ----- Final Dividend 2002-2003 Interim Dividend 2003-2004 Final Dividend 2003-2004 Interim Dividend 2004-2005 ----19 18 ----87.551 13.53 887. in millions) 109.056.06 (a) (b) (c) (d) 10. 130.383.295 52.265.44 0.824 4.710.40 (a) Raw materials : Direct imports Others (Including value of consumption of imported raw materials purchased through indigenous sources Rs.28 1.27 54.00 (b) 27.90 83.07 19.089. Pigments. in millions) % to Total 1.291 11. Value (Rs.74 } } 1.20 81.175.71 9.865 23.437.157 22.

44 4.47 15. 2005 with an initial installed capacity of 30.23 14.34 million) due from subsidiary companies.48 --8. 600.42 137. furniture & fittings and office equipment have been written down by Rs.54 52. (A) Pursuant to Accounting Standard (AS 28) . 2003-2004 7.28 million (previous year Rs. scientific research equipment.95 million (Previous year Rs.30 27. As required by AS 28.Schedules forming part of the accounts (Rs. Earnings in foreign currency : (a) (b) (c) (d) (e) Export of own products at FOB value Export of traded goods at FOB value Royalty Dividend Other receipts 2004-2005 102. Hitherto.01 28. 23.15 18. the Company has discontinued the method of recognising interdivision transfers as sales as well as material consumption.21 million as the carrying amount of such assets was significantly higher than the current replacement cost.16 million) with a corresponding reduction in material consumption and has no impact on the profits of the Company. Asian Paints (India) Ltd. 96. in Millions) 12.93 8.52 3. annual report 2004-2005 71 .40 8.42 13.42 9.16 5.89 million) on Research and Development have been included under the respective heads of expenses.96 13.13 31. With effect from the financial year ended 31st March 2005.Impairment of Assets issued by the Institute of Chartered Accountants of India. 31. The value of such inter-division transfers was included in material consumption of the consuming divisions.64 2003-2004 52. have been written down by Rs. being tinting systems leased to the dealers.06 20. the company made an assessment as at 1st April 2004 for any indication of impairment in the carrying amount of the Company’s fixed assets and determined impairment loss on certain fixed assets.86 4. Fixed assets being plant & machinery (including information technology assets and electric & pipe fittings). the impairment loss as at 1st April 2004 is adjusted against opening balance of revenue reserves net of deferred tax credit. Revenue expenses amounting to Rs. 19.24 million mainly due to technological obsolescence and expected disposal of such assets before the previously estimated useful life. 15.35 Other interest 23.65 18.09 0. The details of the same are as under : (a) (b) Fixed assets.81 7. the Company has been recognising inter-division transfers of Phthalic Anhydride and Pentaerythritol to paint plants for captive consumption as revenue and the same was disclosed separately in Schedule H ‘Sales & Operating Income’.36 million (Previous year Rs.10 5. near Chennai in the state of Tamil Nadu commenced production on 20th January. The previous year’s figures have been restated accordingly. 16.000 MTs per annum. 248. 206. The above change in the method of revenue recognition has resulted in a reduction in Net Sales and operating income by Rs. Interest expense includes: 2004-2005 2003-2004 On Debentures and other fixed loans 4.31 ----1. 458. Sundry debtors include Rs. Expenditure in foreign currency : 2004-2005 (a) (b) (c) (d) (e) (f) (g) Annual maintenance for software Royalty Procurement of software Professional fees Shade cards and other sales promotional items Travelling and training expenses Others 8.35 102.08 2. being the impairment loss relating to prior periods. 17.92 38. 75.41 21.57 The Company’s new paint plant at Sriperumbudur.

a net increase in Deferred Tax Liability by Rs. 2.90 million written off during the year as the project is no longer pursued. There are no amounts outstanding to such suppliers which are due for more than 30 days beyond the agreed credit period.03) has been adjusted against the opening General Reserves of the company as at 1st April 2004.00 The carrying amount of the above assets as at 1st April.58% of total ordinary share capital to some of the existing shareholders of the subsidiary company for a consideration of Rs.00 20. 21. 16. 20. Consequently.50 Revised Useful Life (years) 4 8 8 5 5 Revised Rate of Depreciation (%) 25.75 6. 31. Pursuant to the Accounting Standard (AS 29) – Provisions.15 million. and net increase in the profits for the financial year ended 31st March.63 million) from non-trade investments. over its remaining useful life. 22. 2005 which has been charged to Profit and Loss account as required under Accounting Standard (AS 6) Depreciation Accounting.21 4.75 9. ‘Profit on sale of Assets’ includes Rs.06 million towards permanent diminution in the value of investments in the financial year ended 31st March 2004. 33. 1956 except tinting systems (excluding computers which are part of tinting systems) leased to dealers which are depreciated over the estimated useful life of nine years. 68.78 million received on account of completion/disposal of various tax assessments/appeals. The combined impact of (A) and (B) above has resulted in a net reduction in depreciation by Rs. 42. 17. Interest income includes Rs. 55.53 million (previous year Rs.000). 111.95 million. 100. (B) Till the financial year ended 31st March. 83. 2005 by Rs. 23.31 million net of consideration received has been recognised in the Profit and Loss Account as an extraordinary item towards loss on sale of investment. Consequent to the above provision for impairment. The above revision in useful life has resulted in additional depreciation amounting to Rs. 163. on the basis of information available with the Company regarding small scale industry status of the suppliers.12 million in the subsidiary till the date of transfer. Sundry balances write back (net) include write back of provisions made in the earlier years towards statutory and other liabilities which have been determined to be no longer required in the current financial year. 26. the company had been providing depreciation on its fixed assets under Straight Line Method and at rates specified under Schedule XIV to the Companies Act.79 million. aggregating to 6.50 12. 11. 2005 and concluded that there has been no significant change in the above impairment provision. the Company has increased the rate of depreciation of certain classes of assets as follows: Asset Class Information Technology Assets Scientific Research Equipment Furniture Office Equipment Vehicles Rate of Depreciation (%) till 31st March.50 20.670. 0. 291. 2005 has reduced by Rs 27. the disclosure relating to provisions made in the accounts for the year ended 31st March. 5.90 million towards profit on disposal of the Company’s property in Mumbai. 2005 is as follows: 22. The Company had made a provision of Rs. 66. 24.Schedules forming part of the accounts The total impairment provision of Rs.45 million less Deferred Tax credit .755 ordinary shares of Mauritian Rupees 10/. the Company has provided depreciation on the asset’s revised carrying amount less its residual value (if any). 29. After recognising the impairment loss. Interest income for the year ended 31st March. the Deferred Tax Liability for the year ended 31st March. 1.13 million for the financial year ended 31st March. ‘Miscellaneous Expenses‘ includes initial project expenses incurred in setting up a paint plant at Pondicherry amounting to Rs. The amount due to Small Scale Industrial undertakings (SSIs) is furnished under the relevant head.33 4. The balance amount of Rs. 2004 included Rs. 2005 has reduced by Rs. 25.each being 89. 2004.97 million resulting in net increase in the profits of the Company by Rs. 2004. The Company had invested Rs. 72 .80 million.Rs 454.42 million (Gross . 2004 is being depreciated over the revised remaining useful life. During the year the Company sold its investment in its subsidiary Asian Paints (Mauritius) Ltd.Rs.98 million resulting in net decrease in the profits of the company by Rs. The Company has assessed its fixed assets for impairment as at 31st March.99 million. Based on the management’s estimate of useful life. Contingent Liabilities and Contingent Assets.00 12.92 million and the deferred tax liability for the year has increased by Rs.76 million (equivalent to Mauritian Rupees 500. the depreciation for the year ended 31st March.

52 7. Lease rentals are reviewed periodically taking into account prevailing market conditions.76 (305.09 5.16 11.70 2.08 59.Schedules forming part of the accounts (Rs.45 8.47 3.70 Provision for Bad and Doubtful Debts(4) 2004-05 38.25 38.42 2003-04 120.30 108. (1) Excise provision is made towards matters disputed at various appellate levels. b) Future minimum lease rentals receivable as at 31st March.03 18.38) --163.01 14.32 144. Net Deferred tax Assets/(Liabilities) Excess Liability created in 2001-2002 transferred back to General Reserve Deferred tax liability reversed on assets impaired as at 1st April.21) 52. in Millions) *Provision for Excise(1) 2004-05 Opening Balance Additions Utilization Reversals Closing Balance 59. the following information is given : a) The Company has provided tinting systems to its dealers on an operating lease basis.97 9.56 --8.42 27. The lease period varies between nine and ten years.16 (583.46 Pursuant to Accounting Standard (AS 19) .Accounting for Taxes on Income issued by Institute of Chartered Accountants of India. 2005 as per the lease agreements: (Rs. Deferred tax Assets/(Liabilities) for the year 28. Lease rentals are payable monthly.49 244.91 13. Asian Paints (India) Ltd. 2004 (397.83 1. (2) Provision is made towards discounts and sales promotion. being the difference between the taxable income and accounting income. 2004. annual report 2004-2005 73 .07 4.72 ----126.58 --123.32 2003-04 161.51 0.01 200.80 17.56 --44. 2005 are as follows : (Rs.83 105.96 0. 1961. The Company has recognised deferred tax arising on account of timing differences.99 2003-04 69.05 3. that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS 22) . The major components of deferred tax assets/(liabilities) arising on account of timing differences as at 31st March. A refundable security deposit is collected at the time of signing the agreement.Leases issued by the Institute of Chartered Accountants of India.53 51.01 32. but yet to be quantified at customer level. 1961.18 --10.56) 50.18 23.97 * Provision for Excise and Provision for discounts & Sales promotional expenses have been grouped under the head ‘Other provisions’ of Schedule G.80 158. in Millions) As at 31st March. The equipment shall be used only to tint products of the lessor. As at 31st March.37 10.86 0.96 *Provision for discounts and sales promotional expenses(2) 2004-05 158.02 Provision for Leave Encashment(3) 2004-05 123.27 158.17) 58.44 26. 2005 Deferred tax Assets/(Liabilities) Difference between the Written Down Value of assets as per books of accounts and Income Tax Act. (4) Provision for doubtful debts is made based on the management’s estimate.15 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. Expenses allowed for tax purpose on payment basis Provision for doubtful debts Voluntary Retirement Scheme (VRS) expenditure debited to Profit & Loss Account but allowed under the Income tax Act over five years Capital Losses carried forward under the Income Tax Act.02 157.89 2003-04 24.37 13.89 (486.23 2003-2004 136. (3) Provision is made based on actuarial valuation. in Millions) 2004-2005 i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years 80.95 3.02 200. 27.

The Company has taken certain assets like cars.919.83 The Company’s share of capital commitments in the JV as at 31st March. in million) Weighted average number of equity shares outstanding 2004-2005 18.53 1. liabilities. The lease rentals are payable on a monthly/quarterly basis by the Company.54 million (Previous year Rs. Future minimum lease rentals payable as at 31. computers etc.Financial Reporting of Interests in Joint Venture.32 million (Previous year Rs. The Company’s share of contingent liabilities of the JV as at 31st March. Asian PPG Industries Limited (hereinafter referred to as JV) are as follows: a) The proportion of interest of the Company in the JV is by way of equal equity participation with PPG Industries Inc.17 53.60 million).12 1. U. The information on gross amount of leased assets.32 million).Rs.025.03. 1. 1. 2005 is Rs. income and expenses related to the Company’s interests in the JV as at 31st March.NIL).per share) Profit after tax and prior period items but before extraordinary item as per Profit & Loss Account (Rs.... No contingent liabilities and capital commitments have been incurred as at 31st March. 2005 is Rs.777.779 2003-2004 16. Pursuant to the Accounting Standard (AS 27) . 29.60 731. 2005 in relation to the Company’s interests in the JV along with the other venturer (Previous year Rs. in Millions) 2004-2005 i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years 30.779 74 . in Millions) 2004-2005 i) ii) iii) iv) c) d) e) Assets Liabilities Income Expenses 563.919.2005 as per the lease agreements : (Rs.93 95.545. 2003-2004 29. 30. on an operating lease basis for a period of 48 months. Earnings per share: a) b) c) Basic and diluted earnings per share before extraordinary item in rupees (face value .13 95.09 36.59 2003-2004 459.22 million (Previous year Rs.73 197.96 787.74 927. The initial direct cost relating to acquisition of tinting systems is capitalised. the disclosures relating to Joint Venture viz. Nil).92 --83.22 c) 29. 10/.82 174.A.S. 2.09 Lease payments recognised in the Profit and Loss Account for the period are Rs. depreciation and impairment is given in Schedule ‘D’ to the Balance Sheet.13 --66.Schedules forming part of the accounts c) d) e) II. 2005 is as follows: (Rs. a) b) Total amount of contingent rents recognised as income —NIL (Previous Year . b) The aggregate amount of assets. Nil).26 1. 22.

10) (7.14 5. (Rs. 879.69 --34.42 46.15) (12.25 --4.14 0.48) (54.42 --8.08) (22.44 4.24 --14. * Under the employment of the Company pursuant to the necessary approvals from the shareholders and the Central Govt.Schedules forming part of the accounts 31.03) Corporate guarantee issued by the Company on behalf of its subsidiaries amounting to Rs.68 5.32 0.74 (0.29 1.20 (0.84) --(0.20 0.47 1.67 10.43 17.12 1.91 0.15 260.05 211.20) (0.99 6.17 million as at 31st March.65 138. annual report 2004-2005 75 .03 9.59 0.26 2.30 (0.45 163.53 0.89 0.15 7. Information on related party transactions as required by Accounting Standard (AS 18) for the year ended 31st March.28 --7.43 145.69 29.74 ----1.26 1.84 0.49 106.81 2.25 48.91 0.47 19.11 7.15 0.69 20.98 0. 1956.06 --3.20 1.02 --34.10) 8. under section 314 of the Companies Act.11 7.41 91.00 65.20 0. Asian Paints (India) Ltd. 769.88 28.96 71.2005 : Loans Deposits Others (0.33 19.23 24.65) 26.83 --0.21 10.58 2003-04 2004-05 2003-04 2004-05 2003-04 3.33) 1. in Millions) Particulars Joint Venture Subsidiaries Key Management Personnel Relatives of Key Management Personnel (*) Companies Controlled by Directors/Relatives Employee benefit plans where control exists Others 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04 2004-05 2003-04 2004-05 Processing of goods (Income) Sale of goods Purchase of goods Processing of goods (Expense) Consignment sales Royalty received Consultancy Other recoveries Interest on loan Rent deposit Sale of investments Equity contribution Share Application Repayment of loan given Rent paid Remuneration Commission to NonExecutive Directors Sitting fees paid to Non-Executive Directors Sitting fees received (From subsidiaries for nominee Directors) Other services receipts Retainership fee and other reimbursements Fixed Deposits accepted Fixed Deposits repaid Donation Sale of assets Dividend received Contribution during the year Outstanding as on 31.78 50.35 0.3.43 --(14.90 158.25 204.50 0.50 29.00 ----1.57 45.10) (15.40 0.01 156.07) --(1.87 65.07 1.48 --0.33 6.84 --13.68 million).83 1.20) --(0.25 ----99.65) 39. 2005 (Previous year Rs.02 25. 2005.

Schedules forming part of the accounts
a) b) Joint Venture : Asian PPG Industries Ltd. Subsidiaries :
Asian Paints (Nepal) Pvt. Ltd. Asian Paints (International) Ltd. Asian Paints (South Pacific) Holdings Ltd. Asian Paints Industrial Coatings Ltd. Asian Paints (S.P.) Ltd. Asian Paints (Tonga) Ltd. Asian Paints (S.I.) Ltd. Asian Paints (Vanuatu) Ltd. Asian Paints (Queensland) Pty. Ltd. Asian Paints (Lanka) Ltd. Asian Paints (Bangladesh) Ltd. Asian Paints (Middle East) LLC Berger Paints Singapore Pte Ltd. Berger Building Services (Singapore) Pte. Ltd. Berger International Sdn Bhd. Berger Paints (Thailand) Ltd. Berger Paints Manufacturing Ltd. Berger Paints (Ningbo) Co. Ltd. Berger Paints (Hong Kong) Ltd. Berger Contractor (Singapore) Pte. Ltd. Berger Paints Emirates Ltd. Berger Paints Jamaica Ltd. Berger Paints Barbados Ltd. Berger Paints Bahrain WLL Berger International Ltd. Berger Paints Trinidad Ltd. Enterprise Paints Ltd. Lewis Berger (Overseas Holdings) Ltd. Nirvana Investments Ltd. Samoa Paints Ltd. SCIB Chemical, S.A.E. Surya Powder Coating Limited (Formerly known as Surya Gelcaps Limited)* Taubmans Paints Fiji Ltd. Technical Instruments Manufacturers (India) Ltd. Universal Paints Ltd.

* acquired on 25th October, 2004. The following subsidiaries have been liquidated/struck off/disposed off during the year : Name of Subsidiary Date of disposal/liquidation

Asian Paints Distributors (Private) Ltd. Sri Lanka Under voluntary liquidation Asian Paints (Mauritius) Limited 30th March, 2005 Berger Paints (Malta) Ltd. 12th May, 2004 Berger Paints (Shanghai) Ltd. 23rd February, 2004 c) d) Associate Company : Dutch Boy Philippines Inc. Key management personnel : Name of the Director Ashwin C. Choksi Ashwin S. Dani Abhay A. Vakil K. Rajagopalachari Designation Chairman Vice Chairman & Managing Director Managing Director Non-Executive Director (till 14th March, 2005)

76

Schedules forming part of the accounts
e) Relatives of Key management personnel : Directors : Mahendra C. Choksi Non-Executive Director Amar A. Vakil Non-Executive Director Hasit A. Dani Non-Executive Director Employees : Jalaj Dani, Manish Choksi, Nehal Vakil, Amrita Vakil, Rupen Choksi and Malav Dani. f) Companies controlled by directors/relatives :
AR Intertect Design Pvt. Ltd. Ashwin Holdings Pvt. Ltd. Asteroids Trading and Investments Pvt. Ltd. Castle Investments and Industries Pvt. Ltd. Centaurus Trading and Investments Pvt. Ltd. Clear Plastic Ltd. Coatings Specialities (India) Ltd. Dani Capital and Investments Pvt. Ltd. Dani Enterprises Pvt. Ltd. Dani Finance and Investments Co. Pvt. Ltd. Dani Finlease Ltd. Dani Holdings & Trading Co. Pvt. Ltd. Dani Securities Ltd. Dani Trading and Investments Ltd. Doli Trading and Investments Pvt. Ltd. Elcid Investments Ltd. ELF Trading and Chemical Mfg. Co. Ltd. Gujarat Organics Ltd. Geetanjali Trading & Investments Ltd. Hitech Plast Ltd. Himanshu Holdings Pvt. Ltd. Jalaj Trading and Investments Pvt.Ltd. Jaldhar Investments and Trading Co. Pvt. Ltd. Jatayu Investments Ltd. Kalica Paper Industries Pvt. Ltd. Lambodar Investments & Trading Co. Ltd. Lyon Investments and Industries Pvt. Ltd. Multitech Plast Containers Ltd. Murahar Investments and Trading Co. Ltd. Navbharat Packaging Industries Ltd. Nehal Trading and Investments Pvt. Ltd. Omega Properties Pvt. Ltd. Pragati Chemicals Ltd. Rangmeet Investments Ltd. Resins and Plastics Ltd. Ricinash Oil Mill Ltd. Rita Choksi Holdings Pvt. Ltd. Rupen Investments and Industries Pvt. Ltd. S.C. Dani Research Foundation Ltd. Sadavani Investments and Trading Co. Pvt. Ltd. Sanjivani Chemicals Ltd. Sapan Investments Pvt. Ltd. Satyadharma Investments & Trading Co. Pvt. Ltd. Sudhanva Investments and Trading Co. Pvt. Ltd. Suprasad Investments & Trading Co. Ltd. Suptaswar Investments and Trading Co. Ltd. Tru Trading and Investments Pvt. Ltd. Unnati Trading and Investments Pvt. Ltd. Urvashi Holding Pvt. Ltd. Vikatmev Containers Ltd.

g)

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. Other entities over which there is significant control : Asian Paints Charitable Trust.

h)

Asian Paints (India) Ltd. annual report 2004-2005

77

Schedules forming part of the accounts
32. Segment Information for the year ended 31st March, 2005: (Rs. in Millions) 2004-2005 Paints Revenue Net sales External Inter-Segment Other Income Total Revenue Result Segment result Unallocated Corporate expenses Operating Profit Interest Expenses Interest Income Dividends Profit/(Loss) on sale of long term investments Profit/(Loss) on sale of short term investments Profit on sale of assets Miscellaneous income Extraordinary items Income taxes Net Profit Other Information Segment assets Unallocated corporate assets Total assets (after impairment loss) Segment liabilities Unallocated corporate liabilities Total liabilities Capital Expenditure Unallocated corporate capital expenditure Total Depreciation Unallocated corporate depreciation Total Impairment loss on segment assets as on 1st April, 2004 Impairment loss on unallocated corporate assets as on 1st April, 2004 Total 384.17 2.30 387.36 36.04 699.43 22.18 3,696.30 245.94 7,785.29 691.69 Others* Total Paints 2003-2004 Others* Total

18,665.64 --99.50 18,765.14 2,915.22

749.51 600.28 31.56 1,381.35 121.57

19,415.15 600.28 131.06 20,146.49 3,036.79 (444.00) 2,592.79 (27.54) 4.60 93.78 0.50 23.90 32.10 30.18 (42.31) (969.84) 1,738.16 8,476.98 3,227.69 11,704.67 3,942.24 2,040.23 5,982.47 721.61 26.79 748.40 423.40 52.64 476.04 386.47 67.98 454.45

16,329.39 — 105.89 16,435.28 2,661.89

637.07 458.16 17.82 1,113.05 49.57

16,966.46 458.16 123.71 17,548.33 2,711.46 (372.74) 2,338.72 (52.65) 37.06 15.54 0.01 1.65 --39.07 (68.06) (835.54) 1,475.80

6,427.06

553.99

6,981.05 3,497.92 10,478.97 3,322.12 1,841.44 5,163.56 249.52 13.36 262.88

3,270.14

51.98

238.90

10.62

404.61

34.72

439.33 40.77 480.10

---

---

-------

78

33. Previous year’s figures have been regrouped. Dani Vice Chairman & Managing Director Abhay A. 2005 Asian Paints (India) Ltd. Signatures to Schedules A to M As per our report of even date For Shah & Co. 2005 Ashwin S. N.Schedules forming part of the accounts * Others include Company’s business units manufacturing Phthalic Anhydride and Pentaerythritol. Chartered Accountants H. wherever necessary. Vakil Managing Director Tarjani Vakil Director Mumbai 11th May. annual report 2004-2005 79 . Shah Partner Membership No. Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May. 8152 For and on behalf of the Board Ashwin C.

Balance Sheet Date 0 4 5 9 8 3 1 Date 0 3 Month 2 0 0 5 State Code 1 1 II.) 1 8 . 1956 BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE I. 5 3 Dividend Rate (%) 0 9 5 V. Position of Mobilisation and Deployment of Funds (Amount . in Thousands) Turnover 2 +  3 3 8 8 3 7 0 +  Profit/(Loss) Before Tax 2 7 0 8 0 0 0 Total Expenditure 2 0 6 1 7 8 0 3 7 3 4 8 2 0 0 Profit/(Loss) After Tax (Please tick Appropriate box + for profit. in Thousands) Total Liabilities 6 8 6 6 3 5 0 Total Assets 6 8 6 6 3 5 Reserves and Surplus 4 7 6 3 0 0 Unsecured Loans 5 5 5 1 2 1 0 Sources of Funds Paid-up Capital 9 5 9 1 9 Secured Loans 2 8 3 6 5 8 1 0 Deferred Tax Liability 3 0 5 3 8 0 Investments 2 5 8 4 2 7 Accumulated Losses N I L Application of Funds Net Fixed Assets 3 1 9 5 0 9 Net Current Assets 1 0 8 6 9 9 0 0 0 V. (ITC Code) 2 9 0 5 4 2 0 3 Product Description S Y N T H E T O 0 0 T H E R L Product Description P H T H A I C A N H Y D I T O R L I D E Product Description P E N T A E R I C E N A M R S E L .Statement PURSUANT TO PART IV OF SCHEDULE VI TO THE COMPANIES ACT. C O L O U Y T H R 80 .for loss) Earnings Per Share (Rs. Capital Raised During the Year (Amount . . (ITC Code) 2 9 1 7 3 5 0 Item Code No.Rs. Performance of the Company (Amount . Registration Details Registration No. in Thousands) Public Issue N Bonus Issue N I I L L Year Rights Issue N I L L Private Placement N I Cancellation of shares N I L III.Rs.Rs. (ITC Code) 3 2 0 8 9 0 0 Item Code No. Generic Names of three Principal Products/Services of the Company (As per Monetary Terms) Item Code No.

Consolidated Financial Statements .

An audit includes examining on a test basis. and also the Consolidated Profit and Loss Account and the cash flow statement for the year ended on that date annexed thereto. Shah Partner Membership No. as well as evaluating the overall financial statements. N. included in the consolidated financial statements read with Notes 5 and 6. in accordance with and identified financial reporting framework and are free of material misstatements. of the cash flows for the year ended on that date. b) c) For Shah & Co. We did not audit the financial statements of subsidiaries mentioned in Annexure to this report whose total assets and total revenues are mentioned in the annexure to this report except Asian Paints Industrial Coatings Ltd. 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: a) In the case of consolidated Balance Sheet. These financial statements are the responsibility of the Asian Paints (India) Limited’s management and have been prepared by the management on the basis of the separate financial statements and other financial information regarding its subsidiaries. and Technical Instruments Manufacturers (India) Ltd.58% stake in Asian Paints (Mauritius) Limited on 30th March 2005. 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 explanations given to us. of Schedule ’M’ . We conducted our audit in accordance with generally accepted auditing standards in India.00 4. of the profit for the year ended on that date. in Millions) Total Revenues 139. 2005 H. in so far as it relates to the amounts included in respect of subsidiaries.89 0.15 82 . Based on our audit of financial statements of Asian Paints (India) Limited and on consideration of reports of other auditors of subsidiaries. We believe that our audit provides a reasonable basis for our opinion. the parent Company has sold its 89. (AS-23) Accounting for Investments in Associates in Consolidated Financial Statements and (AS-27) Financial Reporting of Interests in Joint Ventures issued by the Institute of Chartered Accountants of India.61 25. is based solely on the reports of the other auditors. Technical Instruments Manufacturers (India) Limited Note – Subsequent to the Balance Sheet date of Asian Paints (Mauritius) Limited. In the case of consolidated Profit and Loss Account.08 (Rs. An audit also includes assessing the accounting principles used and significant estimates made by management.06 4861. and in the case of the consolidated cash flow statement.227. in all material respects. and our opinion. 8152 Annexure The subsidiary companies considered in the consolidated financial statements are: Direct Subsidiaries: Name of the Company Asian Paints (Nepal) Limited Asian Paints (Mauritius) Limited (Refer note below) Asian Paints (International) Limited Asian Paints Industrial Coatings Limited.Consolidated Financial Statements. of the state of affairs of Asian Paints (India) Limited group as at 31st March 2005.B. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared.Auditors’ Report to the Board of Directors of Asian Paints (India) Limited group on the Consolidated Financial Statements of Asian Paints (India) Limited and its subsidiaries We report that the consolidated financial statements have been prepared by the Company in accordance with the requirements of Accounting Standard (AS-21) . Financial Year 15th Jan-14th Jan Jan-Dec Jan-Dec Apr-Mar Apr-Mar Total Assets 128. whose accounts are audited by us. We have audited the attached consolidated Balance Sheet of Asian Paints (India) Limited group as at 31st March 2005. The financial statements of other subsidiaries other than those mentioned above have been audited by other auditors whose reports have been furnished to us. Chartered Accountants Mumbai 11th May. evidence supporting the amounts and disclosures in the financial statements.

Ltd.Dec Jan . For Shah & Co. (Liquidated on 23rd February. Jan . Berger International Limited is holding 30% equity interest. Shah Partner Membership No. S.Dec Jan .. Chartered Accountants Mumbai 11th May.Dec Berger Paints Singapore Pte. Berger Paints (Ningbo) Co.L.) Limited (In voluntary liquidation) v ) Subsidiaries of Berger International Limited. Jan .Dec Jan .Mar Joint Venture: The Joint Venture unit considered in the consolidated financial statements is Asian PPG Industries Limited. a joint venture between the parent company and PPG Industries Inc.Dec Jan .L.Dec Jan ..Dec Jan . Berger Paints (Hong Kong) Ltd. 8152 Asian Paints (India) Ltd. Berger Contractor (Singapore) Pte. Limited Asian Paints (Lanka) Limited Asian Paints (Bangladesh) Limited Asian Paints (Middle East) LLC SCIB Chemical. Jan .A. Singapore Accounting period Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Accounting period Jan . Ltd.A.S.Dec Berger Paints Trinidad Ltd. Ltd. Inc..Indirect Subsidiaries: i) Subsidiaries of the wholly owned subsidiary. (Disposed on 12th May.E. wherein one of the indirect subsidiaries i. 2004) Enterprise Paints Limited Universal Paints Limited Lewis Berger (Overseas Holdings) Ltd.Dec xi) Subsidiary of Asian Paints Industrial Coatings Limited: Surya Powder Coatings Limited (Formerly known as Surya Gelcaps Limited) Apr .Dec vii) Subsidiary of Enterprise Paints Limited: Nirvana Investments Ltd. Ltd.Dec Jan . Asian Paints (South Pacific) Holdings Limited Asian Paints (South Pacific) Limited Asian Paints (Tonga) Limited Asian Paints (Soloman Island) Limited Asian Paints (Vanuatu) Limited Asian Paints (Queensland) Pty. Jan . Jan .Dec viii) Subsidiary of Nirvana Investments Ltd. Berger Paints Manufacturing Ltd. Berger Paints (Malta) Ltd. Berger Paints Emirates Ltd. Mauritius. Berger Paints (Thailand) Ltd. Associate Company: Dutch Boy Philippines. annual report 2004-2005 83 . Asian Paints (International) Limited. U.: Berger Paints Jamaica Ltd. N.Dec Jan .Dec i x ) Subsidiaries of Lewis Berger (Overseas Holdings) Ltd. Jan .e. 2005 H.Dec Jan .Dec x) Subsidiary of Universal Paints Limited: Berger Paints Bahrain W. Singapore ii) Subsidiary of Asian Paints (South Pacific) Limited: Taubmans Paints (Fiji) Limited iii) Subsidiar y of Taubmans Paint (Fiji) Limited: Samoa Paints Limited i v ) Subsidiar y of Asian Paints Lanka Limited: Asian Paints Distributors (Pvt. 2004) vi) Subsidiary of Berger Building Services (Singapore) Pte Ltd.Dec Berger Paints Barbados Ltd. Jan .. wherein the parent company has equal equity participation. Berger Building Services (Singapore) Pte.Dec Jan . Egypt Berger International Limited.Dec Jan . Berger Paints (Shanghai) Ltd. Berger International Sdn Bhd.

395. 8152 For and on behalf of the Board Ashwin C. 2005 (Rs.92 7.219.671.090.46 581. in Millions) Schedules FUNDS EMPLOYED Shareholders’ Funds Share Capital Reserves and Surplus Capital Reserve on consolidation Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability (Net) (Refer Note B .058.03.058.73 4. 2005 84 .47 4.Consolidated Balance Sheet as at 31st March.93 800.720.67 608.85 2.369.69 As at 31.958.476.172.693.03 4.15 22.050.005. N.21 E F 9.03.40 2.24 4.03 6.81 8. Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May.251.19 163.65 500.867.879.13 --9.06 0.13 22.294.20 4.01 8.97 1.77 698.85 96.7 (vi) in Schedule M) Less : Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Goodwill on consolidation Miscellaneous Expenditure (To the extent not written off) Total Notes As per our report of even date For Shah & Co.751.57 152. Vakil Managing Director Tarjani Vakil Director D A B C As at 31.17 in Schedule ‘M’) Minority Interest Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation/Amortisation/Impairment Net Block Capital Work in Progress Investments Current Assets.739.690.88 1.219.363.21 G M Mumbai 11th May.018. Loans and Advances Interest accrued on investments Inventories Sundry debtors Cash and Bank Balances Other receivables Loans and Advances Retirement benefit assets (Refer Note B .545.55 1.42 5.77 441.69 8.37 638.44 2.076.174.50 46.99 1.412.10 5.181.75 982.41 697.41 1. Shah Partner Membership No.272.70 4.2004 959.74 4.34 1.42 5.31 969.14 123.72 0.36 0.178.20 4.313.95 4.2005 959. Dani Vice Chairman & Managing Director Abhay A.87 3.693.02 3.10 5. 2005 Ashwin S. Chartered Accountants H.649.22 533.80 5.64 1.73 760.04 353.00 184.138.53 9.31 9.

01 108.079.000.41 4. 8152 For and on behalf of the Board Ashwin C.955.812.179.448.50 3. 2005 (Rs.05 335.(Face value of Rs. 2005 Ashwin S.00 2.13 2.63 12.60 104.73 479. N.Interim .) Basic and diluted .22 323.26 2.69 25. Chartered Accountants H.52 5.69 527.Consolidated Financial Statements Consolidated Profit & Loss Account for the year ended 31st March.817.361. Shah Partner Membership No.16 2.54 71.74 25.50 22.10 2.91 820.00 2.477.each) (Refer Note B . Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May.52 (4.63 1. Dani Vice Chairman & Managing Director Abhay A.25) 1.928.493.25 820.60 2.07 1.916.68 (18.98) 1.892. in Millions) Schedules H Year 2004-2005 28.605.095.56 130.05 2.20 28.207.17 in Schedule ‘M’) PROFIT AFTER TAX BEFORE PRIOR PERIOD ITEMS Add/(Less) : Prior period items (Net) PROFIT AFTER TAX AND PRIOR PERIOD ITEMS Less : Minority Interest ATTRIBUTABLE TO SHAREHOLDERS Add : Balance brought forward from previous year DISPOSABLE PROFIT DISPOSAL OF ABOVE PROFIT Dividend to shareholders of parent company Equity Shares .015.235.91 383. annual report 2004-2005 85 .91 18.89 78.14 2.63 999.15 Year 2003-2004 24.442.37 1. 2005 Asian Paints (India) Ltd.475.Final Tax on Dividend Transfer to General Reserve Balance carried to Balance sheet Earnings per share (Rs. administrative.13 152.878. DEPRECIATION AND TAX Less : Interest Less : Depreciation/Amortisation Add : Profit from Associate Company PROFIT BEFORE TAX AND AMORTISATION OF GOODWILL Less : Amortisation of Goodwill PROFIT BEFORE TAX Less : Provision For Current Tax Less : Provision For Deferred Tax Liability/(Asset) (Refer Note B .44 77.966.55 22.18 2.01 519.415.96 3.90 PROFIT BEFORE INTEREST.18 in Schedule ‘M’) Notes M As per our report of even date For Shah & Co.05 15.31 1.11 INCOME Sales and operating income (Net of discounts) Less: Excise Sales and operating income (Net of discounts and excise) Other income EXPENDITURE Materials Consumed Employees’ remuneration and benefits Manufacturing.560.89 646.00 2.91 J K L 14.095. Vakil Managing Director Tarjani Vakil Director 3.463.15 613.736.88 2.47 355.10/.851.740.675.65 1.560.72 19.08 263.892.86) 1. selling and distribution expenses I D Mumbai 11th May.345.75 (59.03 628.253.97 22.34 1.35 39.

Vakil Managing Director Tarjani Vakil Director 2004-2005 2.00 C. 8152 Mumbai 11th May.84) (17.01) 46.66 (865.06 3. Shah Partner Membership No.03.65) (418.2005 For and on behalf of the Board Ashwin C.16 11.96 (854.57 (167.30 698.01) 0. Dani Vice Chairman & Managing Director Abhay A.76 --(0.18) (34.34) (28.15 (4.60 77.65) 17.88) 202.73) (24.81) 698. Net Cash generated from Operating Activities Cash flow from Investing Activities: Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments Sale of Investment Additional Interest in Subsidiaries Cash outflow on acquisition of Subsidiaries Cash inflow on disposal of Subsidiaries Interest received Dividend received Net Cash used in Investing Activities Cash flow from Financing Activities: Availment of secured loans Repayment of debentures and other secured loans Repayment of unsecured loans Availment of unsecured loans Interest paid Dividends paid (including paid to minority shareholders) Net Cash used in Financing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents as on 01.73) --624.80) --(38.17 (966.06 --(2.024.16) 2.47) 1.338.54) 3.59) 287.46) (1.41) (2.71) 168.50) 716.2004 Cash and Cash Equivalents as on 31.067. D.61) ----18.34 613.88) (1.27 (327.76) (206.00 608.48 7.Cash Flow Statement for the year ended 31st March.60) (1.46) (39.50 3.33) 13.487.29) (1.68) (894.95) 242.878.26 62.01) 152.48) (89.10) (30.81) (1.34 (1.80 (441. As per our report of even date For Shah & Co.131.385.10 (10.04.79 (269.52 (738.84 (93.70 680.19 2003-2004 2.59 (156.134.44) --(900. Cash from Operating Activities: Net profit before prior period items and tax: Adjustments for: Depreciation Amortisation of Goodwill Interest Income Interest Expense Prior Period adjustments Dividend Income Adjustment on Consolidation Profit from Associate Company Foreign exchange translation Profit on sale of Investments Loss on disposal of subsidiary Profit on disposal of subsidiary Retirement benefit assets Profit on sale of assets Loss on sale of assets Operating Profit before working capital changes Adjustment for: Trade receivables Other receivables Inventories Trade and other payable Cash generated from Operations Less: Income tax paid (net of refund) B. 2005 Ashwin S.07 467.341.07 (7.40 2.23) 163.22) (33.83) (34.64 (957.52) (8.415.40) (7.98) (62.51) 16.63 628.35 78. Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May.42) 108. N.03 2.98 (109. 2005 (Rs.10 (14. 2005 86 .14) (34.26 (46.69) 40.031. Chartered Accountants H.468. in Millions) A.

25) 42.940 Bonus Shares of Rs.03 3.79) 42.each 995.75 (141.20 SCHEDULE B : RESERVES AND SURPLUS Capital Reserve Capital Redemption Reserve General Reserve As per last Balance Sheet Add : Transfer from Profit and Loss Account Add : Transfer from Debenture Redemption Reserve Add : Realised on disposal of subsidiary transferred from foreign currency translation reserve Add : Excess Deferred Tax Liability created in 2001-2002 transferred back Add/(Less) : Adjustments on consolidation Less : Capitalised for issue of Bonus shares Less : Provision for impairment on fixed assets as on 1st April.each fully paid up issued on capitalisation of Share premium (Rs. 10/.79 355.00 1.45) 163.48 --(454.03.50 --3. 21.00 5. 10/.000 Equity Shares of Rs.Consolidated Financial Statements Schedules forming part of the accounts (Rs.93) ----3.2004 b) 959.56) --(34.B 16A in Schedule M) Add : Reduction in the deferred tax liability on impairment of fixed assets (Refer Note . 10/.15 Profit and Loss Account Asian Paints (India) Ltd.989.50 820.46) (320.233.00 4.03.725.01 53. 917. 995.each 50. 100/.74 3.74 3.98 million).431.00 Issued and Subscribed 95. annual report 2004-2005 87 . 294.000.500.56 (28.B 16A in Schedule M) Foreign Currency Translation Reserve As per last Balance Sheet Add : Currency translation during the year Less : Realised on disposal of subsidiary transferred to General Reserve Debenture Redemption Reserve As per last Balance Sheet Less : Transfer to General Reserve 0.25 --50.000.20 959.each fully paid: a) 93.56) (34.50) --1.2005 SCHEDULE A : SHARE CAPITAL Authorised 99.50) (88.431. without payment received in cash.779 Equity Shares of Rs.50 (42.50 19.00 4.20 959.13 0.000 shares of Rs. in Millions) As at 31.91 million) and General Reserves (Rs. 2004 (Refer Note .73) (19..000 11% Redeemable Cumulative Preference shares of Rs.56) 183.17 (34.each issued as fully paid up pursuant to the Scheme of Rehabilitation / Amalgamation of Pentasia Chemicals Ltd.919.65 42.00 5.46 519. 10/.01 53.00 1.20 959.690.313.000.25 141.00 As at 31.46 --(34.

04 282.00 (b) (3) (4) 106. (2) (a) Interest free Term loan from the Pradeshiya Industrial Corporation of U.06 88 .850) 13.220.75% Non-Convertible Debentures (Note No. subject to prior charge in favour of the Company’s bankers.34 Notes: (1) Nil. 850 debentures were redeemed during the year (Previous year .251. in Millions) As at 31.13 374.P.51 --982. of U.58 1. book debts and other current assets. 1) Loans and advances From Banks and Financial Institution (Note No.412. (PICUP) under Sales Tax deferment scheme of Govt.86 19.19 24.05 608.14 1.04 1.88 3. (c) Finance leases of subsidiaries.13 608.22 189.05 90.000/. (b) Loans availed by various subsidiaries through guarantee/comfort letter from the parent Company.71 267.13 85.82 1. Secured either by fixed/floating charge on the assets of various subsidiaries ----- 85.51 53.056.60 836.220. 3) Foreign Currency Loan Unsecured Loans Long Term : Fixed Deposits Trade deposits .40 212. Other loans represent : (a) Interest free loan availed under the Sales tax deferment scheme of the Government of Andhra Pradesh by parent Company.05 749..83 Secured by hypothecation of inventories.06 1.00 85.Interest free Other loans (Note No.03.P. excluding inventories at the above locations. 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.64 --90. 4) As at 31. 100. Ltd. (Previous year .03..00 266. Debentures were secured by pari passu charge on the Company’s movable and immovable properties pertaining to the paint plants situated at Bhandup.825).Schedules forming part of the accounts (Rs.40 3.83 441. Ankleshwar and Patancheru.96 1.056.05 351.2004 --374.each privately placed redeemable at par.65 266.2005 SCHEDULE C : SECURED AND UNSECURED LOANS Secured Loans Long Term : Debentures 13.75 % Secured Redeemable Non-Convertible Debentures of Rs.32 191.42 374. 363. 2) Short Term : Loans and advances from banks Cash Credit Accounts (Note No.

42 18.Owned 131.21 --- Vehicles 146.96 97.564.50 131.836.81 233.78 10.51) 39.55 244.867.12 ------------3.19 18.03.03.89 63.70 572.09 123.03.97 --11.73 --7.272.97 0.636.12 10.86 0.174.97 241.96 --21.678.61 4.74 44.39 322.08 --143.43 35.52 Land .03.02 499.63 ----------178.53 90.24 29.Leasehold 360.69 14.2004 As at 31.40 61.63 1.67 --------52.57) (1.35 488.93 52.16A in Schedule M) Additions during the year Deductions/ Adjustments Disposal of subsidiaries As at 31.89 129.09 — 6.89 7.05 Land .74 ------91.41 34.867.2004 Cost of assets taken over on acquisition Schedules forming part of the accounts Tangible Assets: 7.13 9.20 --454.2005 As at 01.24 ----248.904.48 --- Assets given under operating lease 991.80 8.146.18 4.74 15.52 ----------17.92 --12.65 5.38 82.17 1.53 45.61 --- Plant and Machinery 4.83 --- Total 8.01 44.929.74 988.77 1.54 328.10 435.88 473.819.29 --19.65 5.87 (2.64 7. in Millions) Net Block As at 31.89 --- Vehicles 33.35 3.47 53.56 financial lease: Plant & Machinery 9.03.60 628.32 83.74 --14.11 934.2005 Upto 31.29 1.01 355.70 2.33 --- Furniture and Fixtures 478.12 0.62 2.20 4.28 --28.48 --6.693.42 38.85 4.94 9.05 --351.04 4.19 --- Buildings 7.37 9.84 0.08 0.46 2.79 327.31 --- Intangible Assets 286.10 9.99 2.79 4.82 --- Scientific Research: Equipment 90.98 2.24 ------------32.2004 During the year Deductions/ Adjustments Depreciation on assets taken over on acquisition Disposal of subsidiaries As at 31.29 63.05 --- Office Equipment 1.SCHEDULE D : FIXED ASSETS Impairment Gross Block Depreciation/Amortisation (Refer Note B .20 --454.18 350.51 4.55 26.39 4.04.12 2.50 8.81 45.336.35 187.691.67 1.31 135.86 150.2005 As at 31.35 (16.62 0.2004 As at 01.06 8.13 4.07 --98.90 4.69 349.78 ------178.37 ----8.15 293.12 122.53 ----10.33 25.52 Consolidated Financial Statements Asian Paints (India) Ltd.21 0.80) 3.44 0.04 89 .45 --8.14 60.56 --24.63 ----143.79 179.19 495.902.58 16.29 0.91 613.06 23.174.96 --21.25 62.2005 (Rs.37 555.03 59.04.45 ------248.74 4.94 --- Assets acquired on 5.79 7.42 1.54 298.03.48 23.01 --18.46 ------6.363. annual report 2004-2005 Previous Year 8.44 4.99 0.78 4.815.48 1.493.69 --- Buildings 1.574.

Face value (Rs.10 0.09 0. 20.72 --0.72 0.13 0.04 0. (25.000) (c) Patancheru Enviro-tech Ltd.07 10/10/10/10/100/10/1 NZ 10 LE 10 LE 10 LE 10 LE 10 LE 25.96 64.00 64. B .000 redeemed during the year) (c) 10.000) 62. (including share of profit) (Refer Note No.04 30.000 500 0.000 bonds redeemed during the year) (d) Equity shares of Mark Auto Industries Ltd.24 95.2004 SCHEDULE E : INVESTMENTS Long Term Investments Unquoted (i) In Government Securities National Savings Certificates. in Millions) Nos.04 0.) (Unless specified otherwise) As at 31.04 0. --(110.74 25.84 (v) 90 .13 in Schedule M) Total long term unquoted investments --(370) 100/- --- 0.05 0.28 4.03. --(190.07 0.1990 (370 units redeemed during the year) (b) Contribution to Gujarat Venture Capital Fund 1990 (5% amounting to Rs.10 ----0. (National Savings Certificate sold during the year Rs.18) --0.830 (e) Bharuch Eco-Acqua Infrastructure Ltd.35 0.510. Indira Vikas Patra and Defence Certificates deposited with Government authorities.74 (iv) Other Investments (a) Units of Unit Trust of India under Venture Capital Unit Scheme .64 5.90 1.84 25.01 0. 12.13 0.000/10/100/in Peso --5. Dutch Boy Philippines.01 0.07 0. 23.000 Shares sold during the year) (190.500 427.000 shares sold during the year) (110.2005 As at 31.11 --(25.18 (0.04 33. 2.000) (b) Ricinash Oil Mill Ltd.900 (d) SIPCOT Common Utilities Ltd.000) (ii) Trade Investments (Preference shares) 9% Preference shares of Multitech Plast Containers Ltd.00 58. 25.28 4. 2. Inc.000 (iii) Trade Investments (Fully paid Equity shares) (a) Multitech Plast Containers Ltd.03.05 94.500 (g) Danish for Wood 2.5% tax free Bonds of Konkan Railway Corporation Ltd.Schedules forming part of the accounts (Rs.790 (f) Apco Coatings (NZ) Ltd.35 0.500 1.03 128.500 Less : Provision for diminution in the value of investments (h) (i) (j) (k) Masters Builders Technologies Egypt Maseter Builders Technologies Misr Quena Den Braven 500 125 1.10 1. 434.

760. in Millions) Nos.418 10/10/10/772.220 units sold during the year) Birla Cash Plus Institutional Plan .138. Face value (Rs.36 924.442.99 115.008 units purchased during the year) Birla FMP Quarterly series 2 .65 20.03.220) --(11.044 units purchased during the year) Birla FMP Quarterly series 3 .37 --- 269.11 773.2005 As at 31. Total long term quoted investments Total long term investments Short Term Investments (Unquoted) DSP Merrill Lynch Liquidity Fund .603 10/- 51.11 773.Dividend Plan (7.01 151.Dividend Option acquired during the year SBI Magnum Instacash Fund .05 Asian Paints (India) Ltd.Plan A Dividend Pay out (5.46 1.06 748.76.699.71 1.00 10/10/10/10/- 20.01 ----75.783 93.130 units sold during the year) Birla FMP Quarterly series 1 .76.129. Other Investments Housing Development Finance Corporation Ltd.158.09.315 15.603 units purchased during the year) Total short term investments Total Investments Aggregate market value of Long term Quoted Investments : Note : Figures in brackets indicate that of previous year.370) 1. --(13. annual report 2004-2005 91 .65 ----772. Apcotex Lattices Ltd.24 0.829.018.32 --37.81 868.442.) As at 31.829.412.00 20.2004 Quoted (Fully Paid Equity Shares) (i) (ii) Trade Investments ICI (India) Ltd.131.887.008 10/10/3.036.996.036.044 10/- 10.727 --(7.Growth Plan (13.Growth (11.41 1.481.412.Consolidated Financial Statements Schedules forming part of the accounts (Rs.00 --- 5.acquired during the year JM Fixed Maturity Plan .000 3.699.887.029.46 1.129.130) 3.158.029.81 902.41 --- 999.477.Plan A Dividend Pay out (999.03.Plan A Dividend Pay out (3.370 units sold during the year) Birla Cash Plus Institutional Premium Plan Dividend Growth .24 0.09.

87 (iii) Sundry debtors (Unsecured) (a) Outstanding for more than six months Considered good Considered doubtful Less: Provision for doubtful debts (b) Other debts (considered good) (iv) Cash and Bank Balances (a) (b) Cash on hand Balances with Banks: (i) Current Accounts (ii) Cash Credit Accounts (iii) Term Deposits 9.92 7.31 9.85 19.94 427.67 1.240.29 246.02 2.81 --118.35 --42.712.85 75.74 138.45 193.65 2. Central Excise etc. LOANS AND ADVANCES Current Assets (i) Interest accrued on investments (ii) Inventories (a) (b) (c) (d) Raw and packing materials Finished goods Work-in-process Stores.22 2.476.83 17.29 673.76 75.12 302.2004 SCHEDULE F : CURRENT ASSETS.09 484.73 0.379.683.00 184.21 480. (b) Sundry deposits (c) Advances/claims recoverable in cash or in kind (d) Advances to employees (e) Advances against Capital expenditure (f) Income Tax Refund Receivable (g) Prepaid expenses (h) Others 145.44 2.00 3.77 21.57 68.545.33 484.71 187.95 608.76 --0.54 1.33 2.93 Loans and Advances (i) Loans and Advances : Unsecured and considered good (a) Balances with Customs.06 513.03.86 64.59 134.80 242.03.56 60.91 760.958. fuel and other traded goods 1.46 4.73 157.14 92 .44 246. in Millions) As at 31.649.50 79.17 (v) Other receivables 163.69 17.2005 As at 31.19 698.27 800.16 145.65 427.181.076. spares.Schedules forming part of the accounts (Rs.26 237.574.849.76 560.03 0.15 42.

92 1.85 1.99 177.31 21.02 969.78 265.141.60 61.03.Consolidated Financial Statements Schedules forming part of the accounts (Rs.38 18.32 3.07 133.720.005.78 2.945.187.82 (iii) Unpaid/unclaimed dividend Unpaid/unclaimed matured deposits Unclaimed interest Interest accrued but not due Other liabilities 19.2004 SCHEDULE G : CURRENT LIABILITIES AND PROVISIONS Current Liabilities (i) (ii) Acceptances Sundry creditors: — Trade — Others 1.97 5.78 0.018.35 18.543.54 278.52 0.19 4.42 Asian Paints (India) Ltd.445.10 5.69 239.086.92 0.2005 As at 31.751.74 2.73 926.724.28 127.56 73.01 0.03 2.172.03 6.41 (iv) (v) Provisions (i) (ii) (iii) (iv) (v) Proposed final dividend Provision for tax on proposed final dividend Provision for taxation (net of advance taxes paid) Provision for leave encashment Other provisions 527.29 1.31 479. annual report 2004-2005 93 .45 55.19 897.02 0. in Millions) As at 31.99 819.35 2.08 4.03.178.

44 263.96 26.8 in Schedule M) Sundry balances written back (net) Profit on sale of investments Profit on sale of assets Exchange difference (net) Miscellaneous income Retirement Benefit Fund revaluation 10. in Millions) Year 2004-2005 Year 2003-2004 SCHEDULE H : SALES AND OPERATING INCOME Sales: Sales Less: Goods returned Turnover Less: Discounts Sales (Net of discounts) Processing charges Lease Rent Revenue from Home Solutions operations 30.91 14.01 2.27 1.56 --323.44 --56.38 27.729.60 307.42 3.16 310.91 1.52 21.22 17.19 1.47 28.127.78 25.66 6.69 65.01 5.58 24.47 7.916.51 30.78 189.725.15 24.25 9.25 29.69 46.55 94 .71 136.633.163.33 25.44 69.036.095.05 SCHEDULE I : OTHER INCOME Interest received Claims received Dividends Royalty Profit on sale of subsidiaries (Refer Note B .79 40.34 9.85 28.88 130.97 95.20 24.966.Schedules forming part of the accounts (Rs.852.68 62.

633.267.463.791.Consolidated Financial Statements Schedules forming part of the accounts (Rs.84 1.84 1. annual report 2004-2005 95 .97 79.37 SCHEDULE K : EMPLOYEES’ REMUNERATION AND BENEFITS Salaries.54 11.852.37 273.10 1.31 2.896.34 2.31 19.21 144.851.43 13.59 16.41 Asian Paints (India) Ltd.617.37 1. Gratuity and other funds 1.443.11 623.54 15.240. allowances.373. commission.69 11.88 1.877.95 247.859.614.13 1.601. provisions for bonus and accrued leave salary Staff welfare expenses Contribution to Provident Fund.58 310.762. wages. in Millions) Year 2004-2005 Year 2003-2004 SCHEDULE J : MATERIALS CONSUMED Raw and Packing Materials Consumed Opening Stock Add: Purchases and expenses Less: Closing Stock Purchase of Paints for resale Cost of other goods sold Add/(Less) :Decrease/(Increase) in finished and semi-finished stock Opening Stock Closing Stock 1.80 (740.240.31 15.12 1.58 142.877.832.89 12.100.02 14.53 12.015.49) 14.892.52 1.73 107.

67 16.90 115.90 139.58 0.55 290.26 198.83 205. ADMINISTRATIVE.9 in Schedule M) Exchange difference (net) 159.03 10. stationery and communication expenses Travelling expenses Commission on sales Donations Loss on sale of assets Loss on sale of short term investments Miscellaneous expenses Commission to Non-executive directors Directors’ sitting fees Bad and doubtful debts Auditors’ remuneration Loss on sale of subsidiary (Refer Note B .20 3.61 942.65 260.89 --89.65 208.77 162.Schedules forming part of the accounts (Rs.50 158.78 71.02 187.05 908.06 44.41 177.16 4.53 61.88 174.44 5.54 65.14 71.10 0.25 11.24 16.33 873.11 121.23 208.79 212.37 19.31 163.06 --603.892.345.30 111.75 805.04 ----4.05 746.89 786.77 21.37 212.72 96 .40 27.56 3.06 25. in Millions) Year 2004-2005 Year 2003-2004 SCHEDULE L : MANUFACTURING. SELLING AND DISTRIBUTION EXPENSES Stores and spares Power and fuel Processing charges Freight and handling charges Repairs and maintenance: Buildings Machinery Other assets Rent Rates and taxes Insurance Advertisement and sales promotional expenses Cash discount and Payment performance discount Printing.03 956.28 1.71 0.

Asian Paints (India) Ltd. An impairment loss is recognised whenever the carrying amount of asset exceeds its recoverable amount. if lower. 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. 3. assets are recognised at their fair value at the date of acquisition or. an assessment is done to determine whether there is any indication of impairment of the carrying amount of the Group’s fixed assets. 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. as applicable) and other identifiable direct expenses. Leasehold land is amortised over the period of the lease. 1. Revenue Recognition Sale of products is recognised when the risks and rewards of ownership are passed on to the customers. annual report 2004-2005 97 . Accounting Standard (AS 23) . Intangible assets are capitalised and amortised on straight line basis over their estimated useful lives. Interest on borrowed funds attributable to the qualifying assets upto the period such assets are put to use.Consolidated Financial Statements. If any such indication exists.Financial Reporting of interests in Joint Venture issued by the Institute of Chartered Accountants of India. Method of Accounting The financial statements have been prepared on accrual basis of accounting. 2. 4. The assets are depreciated as owned depreciable assets. Fixed Assets The ‘Gross Block’ of fixed assets is shown at the cost of acquisition.Consolidated Financial Statements Schedules forming part of the accounts SCHEDULE M: NOTES ON CONSOLIDATED FINANCIAL STATEMENTS A.Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard (AS 27) . At the balance sheet date. The depreciation on fixed assets is provided on Written Down Value / Straight Line methods as the case may be and at rates permissible under applicable local laws or at such rates so as to write off the value of assets over their useful life. which is on despatch of goods. is included in the cost. over its remaining useful life. which includes taxes. Amounts due from lessees under finance leases are recorded as receivables at the amount of the Group’s net investment in the leases. duties (net of tax credits. Statement of Significant Accounting Policies Basis for preparation of consolidated financial statements The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and comply with the Accounting Standard (AS 21) . The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. 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. 5. Sales are stated exclusive of sales tax/VAT. lease rentals are accounted on accrual basis in accordance with the respective lease agreements. Processing income is recognised upon rendition of the services. Goodwill Goodwill on consolidation is amortised over a period of ten years. less its residual value (if any). Know-how related to plans. In respect of Finance leases. After recognition of impairment loss. the asset’s recoverable amount is estimated. designs and drawings of buildings or plant and machinery is capitalised under the relevant asset heads. the depreciation charge for the asset is adjusted in future periods to allocate the asset’s carrying amount. 6. Lease Accounting In respect of Operating leases. at the present value of the minimum lease payments. Dividend income is recognised when the right to receive dividend is unconditional at the balance sheet date.

with actuarial valuations being carried out at each balance sheet date. stores. and otherwise is amortised on a straight line basis over the average period until the benefits vest. 9. the cost includes duties and taxes (net of tax credits as applicable) and is arrived at on weighted average cost basis. In case of raw materials. Bad debts are written off during the period in which they are identified. the cost of providing benefits is determined using the Projected Unit Credit Method. For defined retirement benefit plans. Discounts due. spares and consumables. Employees’ Retirement Benefits In respect of the holding company. The resulting exchange differences are classified as foreign currency translation reserve. Investments Short term investments are carried at the lower of cost and fair value computed category wise. the assets and liabilities are translated at the exchange rate prevailing at the balance sheet date of respective subsidiaries and income and expense items are translated at the average rates of exchange for the year. yet to be quantified at the customer level are included under the head ‘Current Liabilities and Other Provisions’. packing materials. Exchange differences arising on realisation/payments of foreign exchange are accounted in the year of actual realisation/payment. Long term investments are carried at cost. Translation of Foreign Currency Statements In translating the financial statements of foreign entities for incorporation in the consolidated financial statements. an appropriate share of fixed and variable production overheads on the basis of standard cost method. in which case such differences are adjusted in the carrying amount of the respective fixed assets. In case of forward contracts. stores. Provision for diminution in the value of long term investments is made only if such a decline is not temporary in the opinion of the management. 98 . At the year end.Schedules forming part of the accounts 7. 8. 10. The finished goods and work-in-process cost includes the cost of raw materials. Transactions in Foreign Exchange Transactions in foreign currency are recorded at the rates of exchange in force at the time of transaction date. duties (if applicable) and other costs incurred in bringing the inventories to their present location and condition. The values of fixed assets acquired through foreign currency loans are adjusted at the end of each financial year by any change in liability arising out of expressing the outstanding foreign currency loans at the closing rates of exchange prevailing at the date of Balance Sheet. the exchange difference between the forward rate and the exchange rate at the date of transaction is recognised as income or expense over the life of the contract. except in respect of liabilities incurred for acquiring fixed assets. monetary items denominated in foreign currency are reported using the closing rates of exchange. Traded goods are valued at cost. contribution to Provident fund. packing materials (if applicable). 11. Inventory Inventories are valued at the lower of cost and net realisable value. Actuarial gains and losses that exceed 10 per cent of the greater of the present value of the company’s defined benefit obligation and the fair value of plan assets are amortised over the expected average remaining working lives of the participating employees. Superannuation fund and Pension is charged to Profit and Loss Account on accrual basis. 12. spares and consumables are charged to revenue at the time of procurement. Past service cost is recognised immediately to the extent that the benefits are already vested. Adequate provision is made for debts considered doubtful. In respect of some of the subsidiaries Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution plans where the company’s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit plan. Sundry Debtors Sundry debtors are stated after writing off debts considered as bad. Liability for Gratuity and Leave encashment benefits are charged to profit and loss account on the basis of actuarial valuation. In respect of the joint venture. unserviceable and inert stocks are suitably depreciated. Damaged. Cost is arrived at by applying specific identification method.

Taxes on Income Provision for current tax is computed as per ‘Total Income’ returnable under the applicable laws taking into account available deductions and exemptions. 15. Any asset resulting from this calculation is limited to unrecognised actuarial losses and past service cost. Deferred tax is recognised for all timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. 14. pending approval at the Annual General Meeting. and as reduced by the fair value of plan assets. Research and Development Capital expenditure is shown separately under respective heads of fixed assets.Consolidated Financial Statements Schedules forming part of the accounts The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service cost. 13. plus the present value of available refunds and reductions in future contributions to the plan. Proposed Dividend Dividend proposed by the Board of Directors is provided for in the accounts. Asian Paints (India) Ltd. Revenue expenses including depreciation are included under the respective heads of expenses. annual report 2004-2005 99 .

Claims against the Company not acknowledged as debts a) Tax matters in dispute under appeal b) Others 117. Berger International Limited and its subsidiary. Notes : Subsequent to the Balance Sheet date of Asian Paints (Mauritius) Limited.96 530. the likely outcome of this trial cannot be determined with any reasonable certainty. This matter is subject to Trinidad and Tobago’s High Court Action No.58% 100% 100% 100% Financial Year 15th Jan14th Jan Jan-Dec Jan-Dec Apr-Mar Apr-Mar 5. 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. Limited Asian Paints (Mauritius) Limited (Refer note below) Asian Paints (International) Limited Asian Paints Industrial Coatings Limited Technical Instruments Manufacturers (India) Limited Country of Incorporation Nepal Mauritius Mauritius India India % of voting power 51% 89.09 4.Schedules forming part of the accounts (Rs. Based on the information presently available. One of the subsidiaries. 3. NOTES : Estimated amount of contracts remaining to be executed on capital account and not provided for.87 412.53 120.68 417.64 491.17 279.58% stake in Asian Paints (Mauritius) Limited on 30th March. 2005 to certain local shareholders of the Company for a consideration of Rs. Guarantees given a) to a bank on behalf of the parent Company’s dealers in respect of loans granted to them by a bank for acquiring tinting systems b) to others ii. Therefore.42 234. 2. in Millions) 2004-2005 2003-2004 B.77 11.76 million. no further provision has been made in these financial statements for this matter. Letters of credit and bank guarantees issued by bankers and outstanding as at the Balance Sheet date Contingent liabilities: i. Berger Paints Trinidad Limited. the Group has sold its 89. are engaged in litigation initiated by its former Regional Managing Director. 100 .56 42. Details of Subsidiaries. 1. 0.2241 of 2003. Joint Venture and Associate Company : Subsidiaries: The subsidiary companies considered in the consolidated financial statements are: Name of the Company Direct Subsidiaries Asian Paints (Nepal) Pvt.28 17.15 37.

Limited Asian Paints (Lanka) Limited Asian Paints (Bangladesh) Limited Asian Paints (Middle East) LLC SCIB Chemical S.E.) Limited (under voluntary liquidation) Sri Lanka 100% Jan-Dec Samoa 80% Jan-Dec Fiji Islands 100% Jan-Dec Vanuatu Fiji Islands Kingdom of Tonga Solomon Islands Republic of Vanuatu Australia Sri Lanka Bangladesh Sultanate of Oman Egypt Singapore 100% 51% 51% 75% 60% 88.23% 49% 60% 50. Asian Paints (International) Limited.A.10% Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec % holding Accounting period Asian Paints (India) Ltd. Berger International Limited ii) Subsidiary of Asian Paints (South Pacific) Limited: Taubmans Paints (Fiji) Limited iii) Subsidiary of Taubmans Paints (Fiji) Limited: Samoa Paints Limited iv) Subsidiary of Asian Paints (Lanka) Limited: Asian Paints Distributors (Pvt. Mauritius: Asian Paints (South Pacific) Holdings Limited Asian Paints (South Pacific) Limited Asian Paints (Tonga) Limited Asian Paints (S.) Limited Asian Paints (Vanuatu) Limited Asian Paints (Queensland) Pty.20% 71. annual report 2004-2005 101 .Consolidated Financial Statements Schedules forming part of the accounts Indirect Subsidiaries Country of Incorporation i) Subsidiaries of the wholly owned subsidiary.I.57% 98.

Dec Jan .: Berger Paints Bahrain W. Ltd.E. Singapore: Berger Paints Singapore Pte Ltd. Subsidiaries of Lewis Berger (Overseas Holdings) Ltd. Berger Paints Barbados Ltd.Dec % holding Accounting period Singapore 100% Jan .: Berger Paints Emirates Ltd.Dec x) Bahrain 100% Jan .K. Berger Paints (Ningbo) Co.. Berger International Sdn Bhd.A.K.Dec Jan .L.A. 2004) Singapore Singapore Malaysia Thailand Myanmar People’s Republic of China Hongkong Malta Isle of Man. wherein the parent company has 50% equity participation. Subsidiary of Enterprise Paints Ltd.Dec Jan . Isle of Man.L. Ltd. a joint venture between the parent company and PPG Industries Inc. Ltd. Ltd.Dec Jan .e. 2004) vi) Subsidiary of Berger Building Services (Singapore) Pte.: Nirvana Investments Ltd. 102 . (Liquidated on 23rd February. wherein one of the subsidiaries i.Dec Jan . 2004) Enterprise Paints Limited Universal Paints Limited Lewis Berger (Overseas Holdings) Ltd. Berger Paints Trinidad Ltd. (Disposed on 12th May.: Berger Contractor (Singapore) Pte.2% 100% 100% 100% 100% Jan . subsidiaries of Berger International Limited.3% 60% 100% 100% 84.Dec Jan .: Berger Paints Jamaica Ltd.Dec Jan . Berger Paints (Hong Kong) Ltd. U. U.Dec Jan . Berger Paints (Thailand) Ltd. Berger International Limited is holding 30% equity interest. Subsidiary of Nirvana Investments Ltd.Dec ix) Jamaica Trinidad Barbados 51% 70% 100% Jan .. Berger Building Services (Singapore) Pte.Mar Joint Venture: The Joint Venture unit considered in the consolidated financial statements is Asian PPG Industries Limited. U. Berger Paints (Shanghai) Ltd.K. Berger Paints (Malta) Ltd.: Surya Powder Coating Limited (Formerly known as Surya Gelcaps Limited) (Acquired on 25th October.Dec Jan .K.Dec Jan . U.S. 100% Jan . Associate Company: Dutch Boy Phillippines. 100% Jan .Dec xi) India 100% Apr . U. Inc.e.Dec Jan .Dec viii) U.Dec Jan .Dec vii) Isle of Man. Subsidiary of Asian Paints Industrial Coatings Ltd.Schedules forming part of the accounts Country of Incorporation v) Indirect subsidiaries i. Subsidiary of Universal Paints Ltd. China 100% 100% 100% 81. Berger Paints Manufacturing Ltd.Dec Jan .

v) Minority interest in the net income and net assets of the consolidated financial statements are computed and shown separately. The Group disposed off its 84. The amounts shown in respect of reserves comprise of the relevant reserves as per the balance sheet of the parent company and its share in the increase in the post acquisition relevant reserves of the subsidiaries. in the same manner as the parent company’s financial statements. iv) 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. 0. The actuarial valuation was carried out by the respective subsidiaries on 1st January.43) (7. liabilities. annual report 2004-2005 103 . iii) The goodwill/capital reserve on consolidation has been recognised in the consolidated financial statements. The goodwill is amortised over a period of ten years on straight line basis. ii) The financial statements of the parent company and its subsidiaries have been combined to the extent possible on a line by line basis by adding together like items of assets.Consolidated Financial Statements Schedules forming part of the accounts 6. Berger Paints (Malta) Limited on 12th May.02) 12. All significant intra group balances and transactions have been eliminated on consolidation. The net assets of Berger Paints (Malta) Limited as at the date of disposal were as follows: Particulars (Rs. 8.08) 34. 2004 and 31st December 2004.2% stake in its subsidiary. The assets of the fund are held separately from those of the subsidiaries in an independently administered fund. income and expenses. These plans are valued by independent actuaries every one to three years using the projected unit credit method. Principles of consolidation: The consolidated financial statements are based on the audited financial statements of the subsidiaries for their respective financial years. The plans are funded by payments from employees and the subsidiaries based on the recommendations of independent qualified actuaries.64 i) 7.58% stake in Asian Paints (Mauritius) Limited on 30th March 2005 to certain local shareholders for a consideration of Rs. Hence the financial statements of Asian Paints (Mauritius) Limited have been consolidated for the period from 1st January 2004 to 30th March 2005 (i. the Group has sold its 89.66 (11.18 14.66 24. These plans are salary defined benefits plan and are fully funded.76 Million. the audited consolidated financial statements of Asian Paints (International) Limited have been considered for the purpose of consolidation.22 48. 2004.e. in Millions) 2004-05 Fixed Assets Current Assets Current Liabilities Capital Reserve Minority Interest Gain on Disposal Total Consideration Satisfied by: Cash Consideration Loan receivable Net Cash inflow on disposal: Cash Consideration Cash and Cash Equivalents disposed off Net Cash Inflow 9. 4.77 (10. till the date of disposal of stake in the subsidiary) The net assets of Asian Paints (Mauritius) Limited as on the date of disposal were as follows: Asian Paints (India) Ltd. Certain subsidiaries operate a defined benefit plans scheme.40 23.40 23. In respect of indirect subsidiaries of Asian Paints (International) Limited.75) (3. Subsequent to the Balance Sheet date of Asian Paints (Mauritius) Limited.74 48.67 50.

Permanent diminution in the value of long term Investments in Asian Paints (Sri Lanka) Limited.24) 0.Schedules forming part of the accounts Particular Fixed Assets Investments Long Term Loan Current Assets Current Liabilities Minority Interest Loss on Disposal Total Consideration Satisfied by: Cash Consideration Net Cash inflow on disposal: Cash consideration Cash and Cash Equivalents (disposed off) Net Cash Inflow 10. However. the actuarial valuation as at 31st December 2003 was carried out to reflect the liability in respect of this plan and the total provision of Rs. During the financial year ended 31st December 2003.43 0.57 (3.54) (0.50 (5. 2004.91 millions have been charged to the consolidated Profit and Loss Account as prior period item.02 (1.70) (6.47 0.24 --2.76) 58.74) 64. 13.10) 0. Asian Paints Industrial Coatings Limited acquired 100% stake in Surya Powder Coating Limited (previously known as Surya Gelcaps Limited). Berger Paints (Jamaica) Limited to discontinue the provision of the medical benefits to its pensioners as at 31st December 2003.83 millions has been charged to the consolidated Profit and Loss Account. in Millions) Fixed Assets (including Capital Work in Progress) Long Term Loans Current Assets Current Liabilities Net Assets as on the date of acquisition Goodwill on Consolidation Cash Consideration Net Outflow of Cash and Cash Equivalents 8. during 2004. a decision was taken in the case of one of the subsidiaries.18 (0. The goodwill arising on acquisition of Surya Powder Coating Limited amounting to Rs. the decision was not effected as the directors.33 11. 0. As a result. Myanmar has been recognised in the financial statements of respective holding Companies. based on information available. in Millions) 2004-05 Opening Balance of investment Investment in associate on acquisition of subsidiary Add: Share of profit Less: Share of taxation Less: Exchange difference Closing balance of investment 64.60) 0. Berger International Sdn Bhd.76 0. the Goodwill pertaining to the investment in the above subsidiaries amounting to Rs. The investment in Dutch Boy Philippines Inc. in Millions) 34.90 0. where Berger International Limited. Consequently.76 0. Singapore holds 30% has been accounted for under equity method of accounting as under: (Rs.81 0. 12.73) (2. Malaysia and Berger Paints Manufacturing Limited.24 (21.05) 16.43 million has been recognised in the consolidated financial statements. one of the subsidiaries.76 (0. 7. The assets and liabilities of Surya Powder Coating Limited as on the date of acquisition were as follows: Particulars (Rs. were of the opinion that such a position could not be sustained..14 (12.96 2003-04 --38. 8.85 (16.24 104 .00) 0.38 39. (Rs.44) 7.52 On 25th October.

33 4. Asian Paints (India) Ltd.98 millions resulting in net decrease in the profits of the Group by Rs. 2005 has reduced by Rs 27. As required under Accounting Standard (AS 27) . 2. Consequently. the depreciation for the year ended 31st March 2005 has reduced by Rs. 16.50 Revised Useful Life (years) 4 8 8 5 5 Revised Rate of Depreciation (%) 25. the parent Company made an assessment as at 1st April 2004 for any indication of impairment in the carrying amount of the Company’s fixed assets. As required by AS 28.13 millions for the financial year ended 31st March. over its remaining useful life. income and expenses of JV have been included in the consolidated financial statements. Based on the management’s estimate of useful life.21 4.28 Million (previous year Rs. 2004 is being depreciated over the revised remaining useful life.4 (a) in Schedule ‘M’). the Company has provided depreciation on the asset’s revised carrying amount less its residual value (if any). The parent company’s share of each of the assets.Financial Reporting of Interests in Joint Venture. 83.A. No contingent liabilities and capital commitments have been incurred as at 31st March. The previous year’s figures have been restated accordingly.75 6. annual report 2004-2005 105 .00 15. (Included in Note B . The above change in the method of revenue recognition has resulted in a reduction in Net Sales by Rs. The above revision in useful life has resulted in additional depreciation amounting to Rs. the parent Company has determined impairment loss on certain fixed assets amounting to Rs. Nil). After recognising the impairment loss.50 20. The carrying amount of the above assets as at 1st April.45 millions. Consequent to the above provision for impairment. 458.00 20. 163. the parent company has increased the rate of depreciation of certain classes of assets as follows: Asset Class Information Technology Assets Scientific Research Equipment Furniture Office Equipment Vehicles Rate of Depreciation (%) till 31st March. Nil) Hitherto. 55. The above change does not have any impact on the profits of the Group. the audited financial statements of Asian PPG Industries Limited (hereinafter referred to as JV). the Deferred Tax Liability for the year ended 31st March. B. 454. 2005 is Rs.32 millions (Previous year Rs.16 million) with a corresponding reduction in material consumption.32 millions). Till the financial year ended 31st March 2004. 2004 16.92 million and the deferred tax liability for the year has increased by Rs. The financial year of the JV is April to March. The parent company’s share of contingent liabilities of the JV as at 31st March. With effect from the financial year ended 31st March 2005. A. Pursuant to Accounting Standard (AS 28) – Impairment of Assets issued by the Institute of Chartered Accountants of India.15 millions. 1. On the basis of such assessment. 2005 is Rs. (Included in Note B . The value of such interdivision transfers was included in material consumption of the consuming divisions..75 9. 33. have been consolidated using proportionate consolidation method.S.03) as at 1st April 2004 is adjusted against opening balance of revenue reserves.54 millions. 2005 which has been charged to Consolidated Profit and Loss account as required under Accounting Standard (AS 6) – Depreciation Accounting. (Previous year Rs. The parent company’s share of capital commitments in the JV as at 31st March. 600. 1956 except tinting systems (excluding computers which are a part of tinting systems) leased to dealers which were depreciated over the estimated useful life of nine years.‘Sales and Operating Income’. 1.Consolidated Financial Statements Schedules forming part of the accounts 14. 2005 in relation to the parent company’s interests in the JV along with the other venturer. the parent company had been providing depreciation on its fixed assets under Straight Line Method and at rates specified under Schedule XIV to the Companies Act.95 million. the parent Company has been recognising inter-division transfers of finished goods for captive consumption as revenue and the same was disclosed separately in Schedule ‘H’ . being the impairment loss pertaining to prior periods. U. the Joint Venture between the parent company and PPG Industries Inc. 100.97 million resulting in net increase in the profits of the group by Rs.1 in Schedule ‘M’). the impairment loss (net of deferred tax credit amounting to Rs.00 12. liabilities. the parent Company has discontinued the method of recognition of inter-division transfers as sales as well as material consumption.50 12. (Previous year Rs. 66.

91 95.24) (6. being the difference between the taxable income and accounting income.448.75 127.740.32) (669.71) (48.per share) Profit after tax as per Profit & Loss Account (Rs.Schedules forming part of the accounts 17. Earnings per share: 2004-2005 (a) (b) (c) Basic and diluted earnings per share in rupees (face value Rs.94 136. in million) Weighted average number of equity shares outstanding 2003-2004 As at 31.91 ) (15.45 16.73 49.39 (533.15 1.41) 18.52) (40.80) 53. The group has recognised deferred tax arising on account of timing differences.73 5. The major components of Deferred tax assets/(liabilities) arising on account of timing differences as at 31st March.779 15.00) (481.64 13.779 106 .11 1.22) 58. Losses carried forward under Income Tax Act Total Net Deferred Tax Asset/(Liability) 18.919.43 3. Deductions for the same claimed under Income Tax Act over a period of 5 years Total Deferred tax Assets Expenses allowed under the Income Tax Act purpose on payment basis Provision for doubtful debts Expenditure debited to Profit and Loss Account but allowed under Income tax Act over a larger period.10/. 2005 are as follows : (Rs.89 95.37) (608.2004 (406.2005 Deferred tax Liabilities Difference between the Written Down Value of assets as per books of accounts and Income Tax Act Acclerated Capital Allowances and Unremitted income Deferred tax liability on account of income on retirement assets Preconstruction interest capitalised in accounts.03.57 62.03.85 (353.27) (20. in millions) As at 31. that originates in one period and is capable of reversal in one or more subsequent periods in compliance with the applicable accounting standards.05) (5.919.

15) (0.29 1. 1956.02 1.48 60.20 Employee benefit plans where control exists 2004-05 2003-04 2004-05 Others 2004-05 Processing of goods (Expense) Sale of goods Purchase of goods Royalty paid Consultancy Other recoveries Interest on loan Interest paid Rent Deposit Sale of Investments Repayment of loan Remuneration Commission to Non-executive Directors Sitting fees paid to Nonexecutive Directors Dividend paid Other services Retainership fee and other reimbursements Fixed Deposits accepted Fixed Deposits repaid Donation Dividend received Contribution during the year Outstanding as on 31.81 0.07) (1.26 0.05: Loans Deposits Others (14.14 0.21 --0.84) (0.63 3.20 0.00 50.41 1.45 163.67 274.25 3. Asian Paints (India) Ltd.57 169.34 0.67 --2003-04 106.40 0.08) (22.03) * Under the employment of the parent company pursuant to the necessary approval from the shareholders and the Central Govt. Information on related party transactions as required by Accounting Standard (AS 18) for the year ended 31st March.58 62.25 204.83 --0.89 0.15) (54.59 0.10) 8.20) 1.36 14.03.00 13.33 6.84 --14.15 56.20 15.15 0.07 2003-04 2003-04 --- 1.91 0.Consolidated Financial Statements Schedules forming part of the accounts 19. annual report 2004-2005 107 .50 ----- 1.10) 3.28 --- 7.26 2.06 6.20 2.20) (0.71 (0.22 0. 2005: (Rs.76 28.12 1.90 ----(12.10) (236. 314 of the Companies Act.50 1. in millions) Particulars Key Management Personnel Relatives of Key Management Personnel(*) 2004-05 2003-04 Companies Controlled by Directors / Relatives / Associates 2004-05 138. u/s.30 (0.

Satyadharma Investments & Trading Co. Sudhanva Investments and Trading Co. Dani Trading and Investments Ltd. promoters and affiliates of subsidiary companies/joint venture: 4. A refundable security deposit is collected at the time of signing the agreement. Vikatmev Containers Ltd. Ltd. Ltd.K. The initial direct cost relating to acquisition of tinting system is capitalised. S. Jaiswal and Amitav Sur. Jalaj Trading and Investments Pvt. Dani Securities Ltd. Pvt. Ricinash Oil Mill Ltd. Relatives of Key management personnel: Mahendra C. Urvashi Holding Pvt. Nehal Trading and Investments Pvt. Pvt. Centaurus Trading and Investments Pvt. b) c) 108 . 2005) Directors/Key management personnel of subsidiaries/Joint venture: V. Managing Director and K. Ltd. Suprasad Investments & Trading Co. J. Ltd. Dani Finlease Ltd. Chairman. Non-Executive Director. Abhay A. Shahani. Ashwin Holdings Pvt. Coatings Specialities (India) Ltd.N.Schedules forming part of the accounts 1. Vice Chairman & Managing Director. Vakil. Dani Finance and Investments Co. Ltd. Inc. Initial direct costs are recognised as expenses in the Profit and Loss Account. Others: Asian Paints Charitable Trust. Rita Choksi Holdings Pvt.Ltd. Vakil. Ltd. Ltd. Suptaswar Investments and Trading Co. Unnati Trading and Investments Pvt. Ltd. Dani. Ltd. Certain subsidiaries provide tinting systems to their dealers on an operating lease basis. Tru Trading and Investments Pvt. Non-Executive Director. Ltd. the following information is given: I. Geetanjali Trading & Investments Ltd. Ltd. I. Ltd. Pvt. Ltd. The lease normally ranges for a 5 year period. Asteroids Trading and Investments Pvt. Pragati Chemicals Ltd. Castle Investments and Industries Pvt. Ltd. Dani. Ltd. A security deposit is collected at the time of signing the agreement. Co. 20. the Joint Venture has given certain ‘mixing racks’ on non-cancellable operating lease to its dealers. Choksi. Doli Trading and Investments Pvt. In addition. AP Vanuatu Shareholders Employee Benefit Plans and other entities where control exists : Asian Paints Office Provident Fund. The lease rentals are payable monthly. Asian Paints Management Cadres’ Superannuation Scheme and Asian Paints (India) Limited Employees’ Gratuity Fund. Ltd. Port Vila Hardwares Rene Ah Pow ABM Santo Ariza Holdings Ltd. Ltd. Pursuant to the Accounting Standard (AS 19) . (a) Companies over which the Directors have significant influence or control: Gujarat Organics Ltd. Omega Properties Pvt. Ltd. AR Intertect Design Pvt. Ltd. Solomon Islands Al . Dani Enterprises Pvt.Leases issued by the Institute of Chartered Accountants of India.Hassan Group. UAE Dutch Boy Philippines Incorporated PPG Industries. Jagdish Acharya. Sanjivani Chemicals Ltd. a) The parent company has provided tinting systems to its dealers on an operating lease basis. Key management personnel: Directors of parent Company : Ashwin C. Dani Capital and Investments Pvt. Sapan Investments Pvt. Dani Holdings & Trading Co. Sadavani Investments and Trading Co. Navbharat Packaging Industries Ltd. Rajagopalachari. Multitech Plast Containers Ltd. Asian Paints Factory Employees’ Provident Fund.C. Oman Sultan Bin Sulayem. Resins and Plastics Ltd. S. Manish Choksi. Jalaj Dani. Nehal Vakil. 2. The equipment shall be used only to tint the products of the lessor. Hasit A. Amar A. Pvt. 3. Ltd. Non-Executive Director. Ltd. Rupen Investments and Industries Pvt. Amrita Vakil. a relative of parent Company’s Vice Chairman & Managing Director is also a Director on most of the subsidiary companies. Pvt. Elcid Investments Ltd. Murahar Investments and Trading Co. Hitech Plast Ltd. Jalaj Dani*. Ltd. 5. Kalica Paper Industries Pvt. Rangmeet Investments Ltd. Rupen Choksi and Malav Dani. Choksi. LKP Hardware. ELF Trading and Chemical Mfg. Jaldhar Investments and Trading Co. * Mr. Ltd. The lease period varies between nine and ten years. Non-Executive Director (till 14th March. Clear Plastic Ltd. Pvt. Lambodar Investments & Trading Co. (b) Associates. Ltd. Jatayu Investments Ltd. Ram. Ltd. Ltd. Ashwin S. Ltd. Ltd. Dani Research Foundation Ltd. Himanshu Holdings Pvt. Ltd. Ltd. Lyon Investments and Industries Pvt.

on an operating lease basis for a period of 48 months.00 184. Future minimum lease rentals payable as at 31. in Millions) 2004-2005 Minimum lease payments Finance charge allocated to future periods 1. e) f) II. annual report 2004-2005 109 . in Millions) 2004-2005 i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years 81..89 0.18 Present Value i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years 7.Rs.2005 as per the lease agreements: (Rs.69 2003-2004 138.20 22.Rs.2005 as per the lease agreements: (Rs.10 d) e) a) b) (Rs. NIL (Previous year .11 2.NIL).82 --29. Total amount of contingent rents recognised as expense .00 c) III.82 Asian Paints (India) Ltd. The lease rentals are payable on a monthly/quarterly basis by the parent company.2005 as per the lease agreements: 2004-2005 i) ii) iii) Not later than one year Later than one year and not later than five years Later than five years 33. computers etc.49 246. in Millions) 2003-2004 52.58 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.82 11. 33.03. the Joint Venture does not have an option to purchase the assets.37 --73.50 11.30 110.32 million). The lease rentals are reviewed periodically taking into account prevailing market conditions.32 13.50 106.50 13.46 37. The Joint Venture has entered into an arrangement to obtain computer equipments. Operating Lease payments recognised in the Profit and Loss Account for the period is Rs.32 --4.23 Present Value Minimum lease payments 2003-2004 Finance charge allocated to future periods 2.73 39.NIL).54 94. a) b) Total amount of contingent rents recognised as income . Certain overseas subsidiaries have taken property. The information on gross amount of leased assets and depreciation is given in Schedule ‘D’ to the Balance Sheet.15 million (Previous year Rs. mixing racks etc.03. plant and equipment on finance lease which effectively transferred to the respective subsidiaries substantially all of the risks and benefits incidental to the ownership. As per the lease agreement.50 28.59 1. Future minimum lease rentals payable as at 31. NIL (Previous year .69 13.32 2. on noncancellable operating lease for thirty six months.Consolidated Financial Statements Schedules forming part of the accounts d) Future minimum lease rentals receivable as at 31.92 6.09 19. 33.40 1.50 --24.28 1.58 15. The parent company has taken certain assets like cars.80 1.48 0.03.

91 36.24 13.13 2.15) 10.57 (Rs.45 550.26 ------- Others include the parent company’s business units manufacturing Phthalic Anhydride and Pentaerythritol.476.381.957.695.08 458.179.605.42 62.82) 1.88) 38. 2005: i) Primary segment information: Business Segment: 2004-2005 Paints Revenue External Sales (Net) Inter-Segment Sales (Net) Other Income Total Revenue Result Segment result Unallocated Corporate expenses Operating Profit Interest Expenses Interest Income Dividends Exchange Difference Profit/(Loss) on sale of investments Profit/(Loss) on sale of fixed assets Profit/(Loss) on sale of subsidiaries Miscellaneous income Income taxes Net Profit before prior period items Other Information Segment assets Unallocated corporate assets Total assets (after impairment loss) Segment liabilities Unallocated corporate liabilities Total liabilities Capital Expenditure Unallocated corporate capital expenditure Total Depreciation Unallocated corporate depreciation Total Unallocated corporate non-cash expense other than depreciation Total Impairment loss on segment assets as on 1st April.65 613. in Millions) 2003-2004 Total 22.10 386.71 5.542.855.35 3.28 159.364.67 444.35 121.240.179.21 2.564.52 24.69 24.62 5.88 10.13 9.27 (108.62 3.87 585.50) 1.07 458.72 325.85 336.805.50 13.35 78.56 1.34 1.16 170.98 454.635. Segment Information for the year ended 31st March.70 Others* 749.91 24.00 2.113.79 934.13 11.89 245.90 26.97 3.05 49.60 (940.98 10.808.95 54.475.57 42.72 22.70 (1.83 4.47 26.85 34.60 77.52 12.644.37 349.26 78.51 29.16 17.475.30 522.05 (152.236.822.94 12.73 691.37 51.983.96 907.38 2.69 Others* 637.22 600.994.47 67. 2004 Total * 384.324.060.144.57 Total 25.78 628.939.95 (1.50 8.009.760.51 600.625.62 4.Schedules forming part of the accounts 21.94 22.18 4.17 2.28 31.12 21.66 ----37. 2004 Impairment loss on unallocated corporate assets as on 1st April.10 77.068.39 553.03) 46.71 127.855.82 1.42 2.99 Paints 21.04 885.760.266.817.29 15.01 153.18 2. 110 .01 7.69 558.26 380.

62 72.87 Previous year’s figures have been regrouped.81 25.939. Vakil Managing Director Tarjani Vakil Director Mumbai 11th May.34 15. 8152 For and on behalf of the Board Ashwin C. Signatures to Schedules A to M As per our report of even date For Shah & Co. N. Dani Vice Chairman & Managing Director Abhay A.236. Chartered Accountants H.69 4.82 22. in Millions) 5. 2005 Asian Paints (India) Ltd.37 763.324. Choksi Chairman Jayesh Merchant Vice President Corporate Finance & Company Secretary Mumbai 11th May.112.912.442. Shah Partner Membership No.96 International Operations Total Domestic Operations 18.63 3. wherever necessary. annual report 2004-2005 111 .329.92 13.70 277.71 170.996.81 9.903.942.62 2003-2004 International Operations Total (Rs.91 4.Consolidated Financial Statements Schedules forming part of the accounts ii) Secondary segment information: Geographical Segment: 2004-2005 Domestic Operations Segment Revenue Carrying cost of segment assets Additions to Fixed assets and intangible assets 22.928.10 10.025.73 934.25 349. 20. 2005 Ashwin S.

00 0.48 0.70 6.62 33.50 -0.00 2.00 0.03 0.45 221. Sales.99 1.11 0.93 519.31 3.97 9.46 0.00 0.28 0.40 55. BHD Jan to Dec Berger Paints Barbados Ltd Barbados $ Jan to Dec Berger Paints Emirates Ltd AED Jan to Dec Berger Paints Jamaica Ltd Jamaican $ Jan to Dec Berger Paints Manufacturing Ltd Kyat Jan to Dec Berger Paints Singapore Pte Ltd SG$ Jan to Dec Berger Paints Trinidad Ltd Trinidad $ Jan to Dec Enterprise Paints Ltd GBP Jan to Dec Lewis Berger (Overseas Holdings) Ltd GBP Jan to Dec Nirvana Investments Ltd GBP Jan to Dec Samoa Paints Ltd WST $ (Samoa) Jan to Dec SCIB Chemicals S.00 0.63 13.98 1083.64 61.82 236.04 50.99 26.90 4.04 505.00 0.46 171.65 7.78 21.44 5.48 0.67 227.00 12.12 1.03 2.05 9.77 11.39 13.45 350.47 3.44 41.38 2.51 202.00 0.00 8.86 0. Profit after tax and dividend have been translated at average rates prevailing during the respective financial years.26 157.90 189.61 -0.37 1106.31 0.21 19.30 22.50 -0.86 3.70 282.98 91.44 0.27 0.00 0.40 90.14 5.00 27.90 16.00 1.24 103.70 8.14 371.04 31.75 146.61 -61.64 0.) Ltd SI $ Jan to Dec Asian Paints (South Pacific) Fiji Ltd Fiji $ Jan to Dec Asian Paints (Tonga) Ltd $ Top Jan to Dec Asian Paints (Vanuatu) Ltd Vatu Jan to Dec Asian Paints Industrial Coatings Ltd INR Apr to Mar Asian Paints Lanka Ltd SL Rs Jan to Dec Asian Paints South Pacific Holdings Ltd US $ Jan to Dec Berger Building Services (Singapore) Pte Ltd SG$ Jan to Dec Berger Contractor (Singapore) Pte Ltd SG$ Jan to Dec Berger International Ltd SG$ Jan to Dec Berger International Sdn.13 0.14 318.99 0.00 1.36 37.44 132. 3.00 0. MYR (Malaysia) Jan to Dec Berger Paints (Hong Kong) Ltd HK $ Jan to Dec Berger Paints (Ningbo) Co.99 0.02 0.00 0.13 108.45 8.01 0.83 697. 2004 SUMMARY OF FINANCIAL STATEMENTS OF SUBSIDIARY COMPANIES.44 -168.31 2.15 0.78 11.95 0.00 0.00 1.00 -5.26 -0.60 10.00 0.44 0.00 0.76 36.12 0.49 6. Other Income.00 196.48 -31.00 0.00 0.80 90.71 120.112 All figures in INR millions Capital Reserves Total Liabilities Total Assets Sales Other Income Profit before Tax Tax provision Profit after Tax Current period -40.31 -88.52 40.00 -0.00 0.14 70.19 -9.45 224.03 57.19 3.71 162.00 4.90 52.63 -0.04 286.65 21.62 165.00 139.51 0.63 111.05 -37.19 1.86 58.00 Previous period -43.17 1.32 119.00 0.26 0.13 11.34 49.30 155.00 0.71 178.78 16.70 81.98 817.53 224. Ltd CNY Jan to Dec Berger Paints (Thailand) Ltd THB Jan to Dec Berger Paints Bahrain W.00 93.88 0.46 372.60 6.00 0.32 149.30 -0.20 0.99 1.28 367.66 1.72 134.16 -121.16 77.37 1.72 26.95 116.40 73.00 25.86 33.69 -10.50 2.04 211.00 5.28 15.16 0.43 43.45 0.06 31.00 -0.00 35.09 120.07 0.00 0.52 12.82 10.47 43.72 9.47 81.46 -271.95 23.21 0.00 Period — — — — — Under voluntary Liquidation Disposed on 12th May 2004 Liquidated on 23rd February 2004 Disposed on 30th March 2005 Acquired on 25th October.00 0.70 -121.23 21.08 3.37 7.00 30.86 0.43 0.11 -9.57 0.11 -0.74 10.33 0.00 0.75 8.35 -237.99 4.00 95.13 1837.00 105.00 0.00 0.58 0.26 0.24 -294.62 3.66 6.00 171.57 Current period 111.94 61.69 -71.60 0.77 -3.26 128.00 0.00 0.00 9.52 217.69 4.73 0.86 125.08 12.40 188.23 -89.88 226.07 1.34 77.73 0.44 0.00 10.00 50.00 -1.35 -229.93 2.12 315.95 211.77 11.00 0.47 -5.57 -9.53 0.16 2.48 0.18 149.00 1.16 -120.56 0.56 7.26 1.21 1.13 63.00 0.59 Current period Previous period 156.71 -11.65 0.48 4.35 26.28 0.00 Current period Previous period 151.23 1.L.72 307.26 174.58 130.68 175.17 309.76 342.86 -1.58 978.49 3.61 -6.33 0.00 204.55 0.85 107.02 23.00 4.28 0.13 0.00 -0.30 -0.61 209.39 133.11 -0.09 162.94 257.98 6.42 0.46 68.50 35.63 99.11 -7.00 0.24 1.18 9.42 5.02 0.54 2.Total assets and Total liabilities have been translated at the rates prevailing at the end of the respective financial years.10 0. Asian Paints Distributors (Pvt.00 -4.38 70.20 693.77 1090.46 68.61 12.42 -10.78 -41.00 0.00 1.13 28.66 65.00 0.77 37.55 -34.25 8.71 0.01 0.23 30.91 390.00 0.42 3.31 2.95 23.07 232.37 15.54 1.94 -89.36 6.61 0.95 101.41 0.83 72.00 -28.83 -3.85 190.90 Current period Previous period -42.21 293.71 67.66 114.46 43.89 22.00 99.00 0.52 4.69 0.04 211.96 1.71 1.14 0.28 67.00 0.75 -122.21 1.90 -88.22 21.96 44.35 187.97 42.79 67.17 176.00 0.00 1.57 0.28 -292.25 33.40 81.00 -99. Profit before tax .01 4.00 Previous period 0.58 0.95 -3.52 -54.95 -28.17 6.94 -1.19 Previous period Current period Previous period 0.74 0.88 175.90 11.00 4.93 185.94 5.00 54.00 12.71 223.92 65.66 58.67 1.00 Current period Previous period -0.00 0.63 -0.19 20.39 51. Provision for tax .64 1.00 9.14 0.30 442.48 266.85 211.62 0.47 0.60 161.43 18.00 21.13 44.43 4.00 12.68 66.42 0.29 3.00 0.00 204.00 -3.63 3.62 3.28 103.24 0.06 190.74 0.78 1.04 44.33 48.) Limited Berger Paints (Malta) Ltd.01 10.00 5.25 0.04 0.00 -71.00 0.89 841.00 -3.56 266.02 -0.00 4.00 Current period Previous period 55.A.82 84.91 -3.00 1.27 0.91 76.56 10.00 -8.L.49 16.43 -6.27 -8.38 70.00 23.39 1.89 -0.34 0.72 5.02 121.77 -321.19 5.00 4.02 50.77 158.22 1.31 19.77 -100.52 973.49 489.48 630.00 1452.78 -220.14 0.60 0.24 5.70 51.00 0.56 498.00 1.13 0.02 0.61 -6.21 0.84 276.39 285.85 120.26 12.04 112.92 30.04 0.21 0.93 -29.00 1.83 46.45 1.47 0.00 0.89 144.18 2.81 148.67 117.79 -189.63 -2.75 0.73 12.39 121.09 -8.00 112.87 388.32 -6.68 -4.07 332.33 3.12 0.50 36.43 -44.93 -9. Egpt pound Jan to Dec Taubmans Paints Fiji Ltd Fiji $ Jan to Dec Technical Instrument Manufacturers INR Apr to Mar Universal Paints Ltd Surya Powder Coating Limited GBP INR Jan to Dec Apr to Mar Notes : 1.49 0.00 77.03 -29.01 52.83 0.26 -115.00 -35.07 54.78 -0.15 11.01 0.37 4.00 3.09 1054.05 6.81 49.39 32.00 5.97 34.00 0.06 33.00 -3.42 84.88 152.22 1.27 0.09 Current period Previous period -60.10 197.39 0.15 0.42 80.48 41.46 0.00 0.95 226.00 33.74 13.00 0.00 0.00 0.00 3.35 21.90 1.76 13.00 0.48 222.98 0.31 0.78 3.63 -115.33 0.21 6.23 0.00 3.21 -40. Berger Paints (Shanghai) Ltd.78 0.70 3.44 0.I.17 6.25 522.00 0.35 0.86 57.18 0.75 11.66 320.94 4.44 25.48 0.00 0.26 495.01 14.01 258.83 71.00 3.57 0.75 3.06 -31.86 70.41 1.82 0.39 -34.00 0.00 -2.E.78 163.41 14.49 3.26 11.26 234.77 45.76 237.51 57.20 63.00 30. Subsidiary Name Currency Accounting Asian Paints (Bangladesh) Ltd Taka Jan to Dec Asian Paints (International) Ltd US $ Jan to Dec Asian Paints (Middle East) LLC Oman OR Jan to Dec Asian Paints (Nepal) Pvt Ltd Nepal Rs 15th Jan to 14th Jan Asian Paints (Queensland) Pty Ltd Aus $ Jan to Dec Asian Paints (S.00 -0. Capital.79 0.66 2.46 -44.22 147.58 0.82 0.13 4.48 280. Bhd.34 13.00 -2.04 412.13 191.77 83.00 0.00 5.59 50.00 0.19 -8.00 1.72 143.61 222.Reserves.43 47.00 0.70 9.22 0.37 0.02 0.95 -28.61 -27.54 52.58 271.00 21.49 41.49 6.67 163.84 97.74 15.90 1.25 28.81 13.44 204.29 -46.56 0.50 Dividend Current period 0.00 -3.55 11.00 47.95 48.00 141.27 57. .63 4.63 0.00 45.00 7.44 1.66 418.37 -1.68 10.00 0.00 0. Asian Paints (Mauritius) Limited Surya Powder Coatings Limited 2.64 33.00 28.46 -3.38 0.42 84.69 25.39 0.61 -27.00 0.84 -4.35 0.59 3.83 13.56 -9..17 0.00 -3.00 0.00 3.53 0.09 6.48 89.72 12.78 254.98 54.76 -37.29 83.86 13.64 0.

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