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232
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DISCLOSURES WITH RESPECT TO EMPLOYEES STOCK OPTION SCHEME PURSUANT
TO REGULATION 14 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (SHARE
BASED EMPLOYEE BENEFITS) REGULATIONS, 2014 AS ON MARCH 31, 2018:
7KHUHZHUHQRPDWHULDOFKDQJHLQWKH(6236FKHPHV7KH(6236FKHPHVDUHLQFRPSOLDQFHZLWKWKHUHJXODWLRQV
A) Relevant disclosures in terms of Indian Accounting Standard (Ind AS – 102) under Section 133 of the Companies
Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015.
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B) Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed
in accordance with 'Ind AS – 33' – Earnings per Share under Section 133 of the Companies Act, 2013 read with
the Companies (Indian Accounting Standards) Rules, 2015.
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Sl. No. Name and Address of the Company CIN/GLN
Associate Shares held Section
1 U.K. Paints (India) Private Limited
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IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
No. of Shares (face value of `1/-) held at the No. of Shares ( face value of `1/-) held at %
Category beginning of the year (01.04.2017) the end of the year (31.03.2018) Change
of during
% of % of the
Share holders Demat Physical Total Total Demat Physical Total Total Year
Shares Shares
A. Promoters
(1) Indian
D,QGLYLGXDO+8) 0 0
E&HQWUDO*RYWV
F6WDWH*RYWV
G%RGLHV&RUSRUDWH 0 0
H%DQNV)LQDQFLDO
,QVWLWXWLRQV
(f) Others
Sub-total (A)(1) 587487919 0 587487919 60.50 587487919 0 587487919 60.50 (-)0.01
(2) Foreign
D15,V,QGLYLGXDOV
E2WKHU±,QGLYLGXDOV
F%RGLHV&RUSRUDWH 0 0
G%DQNV),
H$Q\RWKHUV
Sub-total (A)(2) 140656782 0 140656782 14.49 140656782 0 140656782 14.49 0.00
Total Shareholding of
3URPRWHU 3URPRWHU
728144701 0 728144701 74.99 728144701 0 728144701 74.99 (-) 0.01
Group
(A) = (A)(1) + (A)(2)
33
FWG
No. of Shares (face value of `1/-) held at the No. of Shares ( face value of `1/-) held at %
Category beginning of the year (01.04.2017) the end of the year (31.03.2018) Change
of % of % of during
Share holders Demat Physical Total Total Demat Physical Total Total the
Shares Shares Year
B. Public Shareholding
1. Institutions
D0XWXDO)XQGV 11409093 4410 11413503 4410
E%DQNV)LQDQFLDO
277939
,QVWLWXWLRQV
F&HQWUDO*RYWV
G6WDWH*RYWV
H9HQWXUH&DSLWDO
)XQGV
I,QVXUDQFH
0 0
&RPSDQLHV
J)RUHLJQ,QVWL
WXWLRQDO,QYHVWRUV 0 0
),,
K)RUHLJQ9HQWXUH
&DSLWDO)XQGV
L)RUHLJQ3RUWIROLR
0 0
,QYHVWRUV
M$OWHUQDWLYH
0 0 0 0 0
,QYHVWPHQW)XQG
Sub-total (B) (1) 136990270 19798 137010068 14.11 138333821 19798 138353619 14.24 (+) 0.13
B 2. Non- Institutions
D%RGLHV&RUSRUDWH
L,QGLDQ
LL2YHUVHDV
E,QGLYLGXDOV
L,QGLYLGXDOVKDUH
KROGHUVKROGLQJ
70497999
QRPLQDOVKDUH
FDSLWDOXSWR`ODNK
LL,QGLYLGXDO
VKDUHKROGHUV
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VKDUHFDSLWDOLQ
H[FHVVRI`ODNK
F2WKHUVVSHFLI\
15, 1740270 322939
&OHDULQJ0HPEHU 0 0
34
FWG
No. of Shares (face value of `1/-) held at the No. of Shares ( face value of `1/-) held at %
Category beginning of the year (01.04.2017) the end of the year (31.03.2018) Change
of % of % of during
Share holders Demat Physical Total Total Demat Physical Total Total the
Shares Shares Year
2&%
7UXVW 504315
)RUHLJQ1DWLRQDO
,(3)$& 0 0 0 0 0
8QFODLPHG
0 1241435 0 1241435
6XVSHQVH$&
Sub-total (B)(2) 91310334 14521544 105831878 10.90 92871700 11661408 104533108 10.77 (-) 0.12
B. Total Public
Shareholding 228300604 14541342 242841946 25.01 231205521 11681206 242886727 25.01 (+) 0.01
(B) = (B)(1) + (B)(2)
TOTAL (A) + (B) 956445305 14541342 970986647 100.00 959350222 11681206 971031428 100.00 0.00
C. Shares held by
Custodian for GDRs
$'5V
Grand Total
956445305 14541342 970986647 100.00 959350222 11681206 971031428 100.00 0.00
(A) + (B) +(C)
Shareholding at the beginning of the year Shareholding at the end of the year
% of Shares % of Shares
Sl. % of total % of total
No. of Pledged No. of Pledged
No. Shareholder’s Shares
Shares
encumbered
Share holder’s
Shares
Shares
encumbered
Name of the Name of the
(F.V. ` 1/-) to total (F.V. `1/-) to total
Company Company
Shares Shares
8.3DLQWV 8.3DLQWV
,QGLD 0 ,QGLD3ULYDWH 0
3ULYDWH/LPLWHG /LPLWHG
-HQVRQ -HQVRQ
1LFKROVRQ$VLD 0 1LFKROVRQ$VLD 0
/LPLWHG8.
/LPLWHG8.
&LWODQG&RP &LWODQG&RP
PHUFLDO&UHGLWV 0 PHUFLDO&UHGLWV 0
/LPLWHG /LPLWHG
:DQJ,QYHVWPHQW :DQJ,QYHVWPHQW
)LQDQFH3ULYDWH 0 )LQDQFH3ULYDWH 0
/LPLWHG /LPLWHG
%LJJ,QYHVWPHQW %LJJ,QYHVWPHQW
)LQDQFH3ULYDWH 7952420 0 )LQDQFH 7952420 0
/LPLWHG 3ULYDWH/LPLWHG
35
FWG
Shareholding at the beginning of the year Shareholding at the end of the year
% of Shares % of Shares
Sl. % of total % of total
No. of Pledged No. of Pledged
No. Shareholder’s Shares
Shares
encumbered
Share holder’s
Shares
Shares
encumbered
Name of the Name of the
(F.V. ` 1/-) to total (F.V. `1/-) to total
Company Company
Shares Shares
0HHWD'KLQJUD 999999 0 0HHWD'KLQJUD 999999 0
9LQX'KLQJUD 0 9LQX'KLQJUD 0
*XUEDFKDQ6LQJK *XUEDFKDQ6LQJK
0 0
'KLQJUD 'KLQJUD
.XOGLS6LQJK .XOGLS6LQJK
0 0
'KLQJUD 'KLQJUD
<XYUDQL5LVKPD <XYUDQL5LVKPD
0 0
.DXU .DXU
-HVVLPD.XPDU 0 -HVVLPD.XPDU 0
'LSWL'KLQJUD 131712 0 'LSWL'KLQJUD 131712 0
6XQDLQD.RKOL 107520 0 6XQDLQD.RKOL 0
$QVKQD6DZKQH\ 107520 0 $QVKQD6DZKQH\ 0
.DQZDUGLS6LQJK .DQZDUGLS6LQJK
0 0
'KLQJUD 'KLQJUD
.6')DPLO\
.6')DPLO\7UXVW 0 0
7UXVW
*%6'KLQJUD *%6'KLQJUD
0 0
)DPLO\7UXVW )DPLO\7UXVW
Total 728144701 74.99 0 728144701 74.99 0
FWG
Shareholding at the Cumulative Shareholding
Sl. beginning of the year during the year
Shareholder’s Name
No. No. of Shares % of total Shares No. of Shares % of total Shares
(F.V. `1/-) of the Company (F.V. `1/-) of the Company
<XYUDQL5LVKPD.DXU
-HVVLPD.XPDU
'LSWL'KLQJUD 131712 131712
6XQDLQD.RKOL 107520
$QVKQD6DZKQH\ 107520
.DQZDUGLS6LQJK'KLQJUD
.6')DPLO\7UXVW
*%6'KLQJUD)DPLO\7UXVW
(iv) Share holding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs) :
37
FWG
Shareholding at the Cumulative Shareholding
beginning of the year during the year
Sl. For each of the Top
No. 10 Shareholders % of total % of total
No. of Shares Shares of the No. of Shares Shares of the
Company Company
4. LIFE INSURANCE
CORPORATION OF INDIA
3 *6)81'
D$WWKHEHJLQQLQJRIWKH\HDU
E&KDQJHVGXULQJWKH\HDU Date Reason
6DOH 192527 5525751
6DOH
6DOH
6DOH
F$WWKHHQGRIWKH\HDU
5. MONDRIAN EMERGING
MARKETS SMALL CAP
EQUITY FUND, L.P.
D$WWKHEHJLQQLQJRIWKH\HDU 4245994 4245994
E&KDQJHVGXULQJWKH\HDU Date Reason
6DOH 240000 4005994
6DOH 240000
6DOH 120000
15/09/2017 6DOH
29/09/2017 6DOH 200000
24/11/2017 6DOH 114910
F$WWKHHQGRIWKH\HDU
6. GENERAL INSURANCE
CORPORATION OF INDIA
D$WWKHEHJLQQLQJRIWKH\HDU
E&KDQJHVGXULQJWKH\HDU Date Reason
07/04/2017 %X\ 100000 3740000
12/05/2017 %X\ 10000 3750000
19/05/2017 %X\ 50000
%X\ 40000
%X\ 3900000
%X\ 50000 3950000
6DOH 50000 3900000
F$WWKHHQGRIWKH\HDU 3900000
FWG
Shareholding at the Cumulative Shareholding
beginning of the year during the year
Sl. For each of the Top
No. 10 Shareholders % of total % of total
No. of Shares Shares of the No. of Shares Shares of the
Company Company
7. SPAN HOLDINGS PRIVATE
LIMITED
D$WWKHEHJLQQLQJRIWKH\HDU
E&KDQJHVGXULQJWKH\HDU 1LO 1LO 1LO 1LO
F$WWKHHQGRIWKH\HDU
8. FRANKLIN INDIA
SMALLER COMPANIES
FUND
D$WWKHEHJLQQLQJRIWKH\HDU
E&KDQJHVGXULQJWKH\HDU Date Reason
%X\ 100000
%X\
%X\
F$WWKHHQGRIWKH\HDU
39
FWG
Shareholding at the Cumulative Shareholding
beginning of the year during the year
Sl. For each of the Top
No. 10 Shareholders % of total % of total
No. of Shares Shares of the No. of Shares Shares of the
Company Company
10. VANGUARD TOTAL
INTERNATIONAL STOCK
INDEX FUND
D$WWKHEHJLQQLQJRIWKH\HDU
E&KDQJHVGXULQJWKH\HDU Date Reason
07/04/2017 %X\ 22740
14/04/2017 %X\
24/11/2017 %X\ 2947131
%X\
%X\ 3145432
F$WWKHHQGRIWKH\HDU 3145432
(v) Share holding of Directors and Key Managerial Personnel as on 31st March, 2018) :
40
FWG
Shareholding at the Cumulative Shareholding
beginning of the year during the year
Sl. For each of the
No. Directors and KMP % of total % of total
No. of Shares Shares of the No. of Shares Shares of the
Company Company
4. Mr. Srijit Dasgupta
D$WWKHEHJLQQLQJRIWKH\HDU
E&KDQJHVGXULQJWKH\HDU Date Reason
07/12/2017 (623 923
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41
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Shareholding at the Cumulative Shareholding
beginning of the year during the year
Sl. For each of the
No. Directors and KMP % of total % of total
No. of Shares Shares of the No. of Shares Shares of the
Company Company
11. Mr. Kanwardip Singh Dhingra
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E&KDQJHVGXULQJWKH\HDU Date Reason
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14/07/2017
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Deposits
H[FOXGLQJGHSRVLWV Loans Indebtedness
Indebtedness at the beginning of the
Financial Year i.e. on 01.04.2017
L3ULQFLSDO$PRXQW ± ±
LL,QWHUHVWGXHEXWQRWSDLG ± ± ± ±
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Total (i+ii+iii) 119.79 – – 119.79
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Total (i+ii+iii) 143.27 – – 143.27
42
(vi) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
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43
B. REMUNERATION TO OTHER DIRECTORS:
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Particulars of
Name of Directors
Remuneration
Total
Mr. Pulak Mr. Mr. Gopal Amount
1. Independent Mr. Kamal Mr. Naresh
Chandan Dhirendra Krishna
Directors Ranjan Das Gujral
Prasad Swarup Pillai
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2. Other
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Total (2) 10,14,000 10,24,000 20,38,000
Total (B) = (1+2) 10,14,000 10,24,000 3,22,000 – 7,40,000 7,36,000 7,24,000 45,60,000
Total
Managerial 10,14,000 10,24,000 3,22,000 – 7,40,000 7,36,000 7,24,000 45,60,000
Remuneration
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44
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD:
LQ`)
Sl.
Particulars of Remuneration Key Managerial Personnel
No.
Mr. Aniruddha Sen
Mr. Srijit Dasgupta
(Senior Vice President
( Director-Finance, Total
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Details of Penalty/
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Type
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fees imposed
A. COMPANY
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45
ANNEXURE 2
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Manner in which the amount was spent during the Financial Year is detailed below:
1 2 3 4 5 7
CSR project Sector in which Projects/ Amount Amount spent on Cumulative Amount
or activity the Project is Programmes outlay the projects or ([SHQGLWXUH spent: direct
LGHQWL¿HG covered 1. Local area or (budget) programmes upto the or through
other project or sub-heads: reporting period implementing
2. State and program wise 1. Direct agency
district where ([SHQGLWXUH
projects or on projects or
programmes programmes
were undertaken 2. Overheads
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Name Nature of (whether 4XDOL¿FDWLRQ Age employment/
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52
ANNEXURE 5
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ANNEXURE 6
INTRODUCTION
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Section B: Financial Details of the Company
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57
Section E: Principle-Wise Performance
Principle 1
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MARKET PRICE (HIGH / LOW) AT BSE DURING EACH MONTH FOR THE FINANCIAL YEAR 2017-18:
37,000.00
310.00
Berger Close Price
BSE Sensex
30,000.00
210.00 23,000.00
16,000.00
110.00
9,000.00
10.00 2,000.00
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Aug-17
Sep-17
Nov-17
Dec-17
Feb-18
Mar-18
Apr-17
Jun-17
Jan-18
Oct-17
Jul-17
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DIVIDEND HISTORY
PLANT LOCATION
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95
BALANCE SHEET AS AT MARCH 31, 2018
in Crores
Notes As at March 31, 2018 As at March 31, 2017
ASSETS
Non-current assets
Property, plant and equipment 4 911.04 882.87
Capital work-in-progress 4 87.27 56.23
Intangible assets 4 4.29 6.07
Financial assets
(a) Investments 5a 303.18 210.35
(b) Loans 5b 19.99 13.71
(c) Other financial assets 5c 2.53 0.51
Income tax assets (net) 6 46.14 14.76
Other non-current assets 7 31.05 32.83
1,405.49 1,217.33
Current assets
Inventories 8 939.36 894.30
Financial assets
(a) Investments 9a 227.59 367.27
(b) Trade receivables 9b 598.01 509.45
(c) Cash and cash equivalents 9c 64.18 30.88
(d) Bank balances other than (c) above 9d 56.39 4.86
(e) Loans 5b 1.96 5.40
(f) Other financial assets 5c 2.89 2.02
Other current assets 7 208.83 55.83
2,099.21 1,870.01
Total assets 3,504.70 3,087.34
EQUITY AND LIABILITIES
Equity
Equity Share Capital 10 97.10 97.10
Other Equity 11 2,046.51 1,815.67
Total Equity 2,143.61 1,912.77
Liabilities
Non-current liabilities
Financial liabilities
(a) Deposits 12 3.54 2.86
Provisions 13 2.92 2.71
Deferred tax liabilities (net) 14a 58.60 60.09
Other non- current liabilities 15 1.72 0.87
66.78 66.53
Current liabilities
Financial liabilities
(a) Borrowings 16a 143.27 119.68
(b) Trade payables 16b 932.57 750.32
(c) Other financial liabilities 12 113.95 139.72
Other current liabilities 15 85.00 82.02
Provisions 13 15.98 16.30
Current tax liabilities (net) 14c 3.54 -
1,294.31 1,108.04
Total liabilities 1,361.09 1,174.57
Total equity and liablities 3,504.70 3,087.34
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005 Kuldip Singh Dhingra- Chairman
Chartered Accountants
Gurbachan Singh Dhingra-Vice-Chairman
per Bhaswar Sarkar
Partner Abhijit Roy - Managing Director & CEO
Membership Number : 055596 Srijit Dasgupta-Director -Finance & CFO
Place: Kolkata Aniruddha Sen-Sr. VP & Company Secretary
Dated: May 30, 2018
96
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Notes Year Ended Year Ended
March 31, 2018 March 31, 2017
Expenses
Cost of materials consumed 21 2,470.43 2,150.56
Purchases of traded goods 405.57 411.79
(Increase)/decrease in inventories of finished goods,
work-in-process and traded goods 22 (87.66) (120.26)
Excise duty on sale of goods (Refer note 19) 115.58 498.20
Employee benefits expense 23 269.84 244.51
Finance costs 24 16.20 7.76
Depreciation and amortisation expense 25 111.92 98.00
Other expenses 26 922.21 876.60
Total expense 4,224.09 4,167.16
Tax expense
Current tax 232.08 204.91
Deferred tax 14a (2.11) 14.34
229.97 219.25
Total comprehensive income for the year, net of tax (I + II) 433.00 442.65
97
Statement of Changes in Equity for the year ended March 31, 2018
Equity shares of 1 each issued, subscribed and fully paid No. of shares in Crores
*Refer Note 42
b. Other equity
98
Statement of Changes in Equity for the year ended March 31, 2018
For the year ended March 31, 2017
in Crores
Reserves & Surplus
Securities Share based Retained Capital General Capital
Particulars Premium Payment Reserve Earnings Reserve Reserve Redemption Total Equity
Account Reserve
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005
Chartered Accountants Kuldip Singh Dhingra-Chairman
per Bhaswar Sarkar Gurbachan Singh Dhingra-Vice-Chairman
Partner Abhijit Roy-Managing Director & CEO
Membership Number : 055596 Srijit Dasgupta-Director -Finance & CFO
Place: Kolkata Aniruddha Sen-Sr. VP & Company Secretary
Dated: May 30, 2018
99
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2018 in Crores
A. CASH FLOW FROM OPERATING ACTIVITIES: 2017-18 2016-17
Net Profit before tax 661.81 663.34
Adjustment to reconcile profit before tax to net cash flows:
Depreciation and amortization expense 111.92 98.00
(Profit) / Loss on sale/discard of Property, plant and equipment and intangible assets (0.05) 0.34
Employee stock option cost 2.36 1.60
Profit on transfer of Company's paint division relating to 4 wheeler passenger cars and
SUVs, 3 wheelers and related ancillaries (refer Note 27) - (86.67)
Impairment in subsidiary (refer Note 27) - 28.00
Guarantee income (0.92) (2.13)
Unrealized foreign exchange loss 2.10 0.04
Net gain realised on sale of mutual fund investments (18.11) (26.99)
Fair value gain on mutual fund investments held at year end (4.41) (2.97)
Dividend income (6.47) -
Finance costs 16.20 7.76
Interest income (0.87) (2.40)
Operating profit before working capital changes 763.56 677.91
Adjustments for :
Increase in trade payables 180.82 96.61
Increase / (decrease) in other financial liabilities (8.10) 3.79
Increase in other liabilities 3.83 10.06
Increase in provisions 1.67 0.74
Increase / (decrease) in loans, deposits and other financial assets (2.93) 1.66
Decrease in other assets (145.88) (19.41)
Decrease in trade receivables (88.56) (17.60)
Decrease in inventories (45.06) (198.80)
Cash generated from operations 659.35 554.98
Direct taxes paid (net of refunds) (259.92) (212.18)
Net cash flow from operating activities (A) 399.43 342.80
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible assets including capital work
in progress (193.33) (248.83)
Proceeds from sale of property, plant and equipment and intangible assets 1.33 0.86
Purchase of current investments (1,988.27) (4,093.86)
Proceeds from sale of current investments 2,150.47 4,056.46
Investment in joint venture and subsidiaries (94.87) (106.57)
Proceeds from transfer of Company's paint division relating to 4 wheeler passenger
cars and SUVs, 3 wheelers and related ancillaries (refer note 27) - 90.00
Proceeds from Maturity of Fixed Deposits with Banks 0.02 32.88
Investment in Fixed Deposits with Banks (50.85) -
Dividend received 6.47 -
Interest received 0.11 3.79
Net cash flow used in investing activities (B) (168.92) (265.27)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issuance of equity share capital 0.00 0.01
Net movement in cash credit and buyer’s credit 25.09 (106.40)
Short term borrowings taken 2,577.81 995.00
Repayment of short term borrowings (2,577.81) (995.00)
Interest paid (16.31) (8.50)
Dividend Paid (including dividend distribution tax) (203.82) (116.24)
Net cash flow used in financing activities (C) (195.04) (231.12)
Net increase in cash and cash equivalents (A + B + C) 35.47 4.44
Cash & cash equivalents as at the beginning of the year ( also refer note 36) 25.69 21.25
Cash & cash equivalents as at the end of the year 61.16 25.69
Refer Note 9c for Components of Cash and cash equivalents
Summary of significant accounting policies 3
The accompanying notes are an integral part of the financial statements.
As per our report of even date.
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005 Kuldip Singh Dhingra-Chairman
Chartered Accountants Gurbachan Singh Dhingra-Vice-Chairman
per Bhaswar Sarkar Abhijit Roy -Managing Director & CEO
Partner Srijit Dasgupta-Director -Finance & CFO
Membership Number : 055596 Aniruddha Sen-Sr. VP & Company Secretary
Place: Kolkata
Dated: May 30, 2018
100
NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
1. Corporate Information
Berger Paints India Limited (‘BPIL’ or ‘the Company’) is a public limited company domiciled in India and is incorporated under
the provisions of the Companies Act applicable in India. Its shares are listed on three stock exchanges in India. The Company is
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Company is located at Berger House, 129 Park Street, Kolkata-700 017.
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2. Basis of Preparation
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Accounting Standards) Rules, 2015, as amended from time to time.
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currencies are translated at the functional currency spot rates of exchange at the reporting date.
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rates at the dates of the initial transactions. Non-monetary items that are measured at fair value in a foreign currency are
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101
NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
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nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
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for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a
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exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or
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NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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appropriate valuation model is used.
3.9. Inventories
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constitutes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.
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5DZ PDWHULDOV FRPSRQHQWV VWRUHV DQG VSDUHV DUH YDOXHG DW ORZHU RI FRVW DQG HVWLPDWHG QHW UHDOLVDEOH YDOXH &RVW LV
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above cost.
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7UDGHGJRRGVDUHYDOXHGDWORZHURIFRVWDQGQHWUHDOL]DEOHYDOXH&RVWLQFOXGHVFRVWRISXUFKDVHDQGRWKHUFRVWVLQFXUUHGLQ
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Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
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FRQVLGHUDWLRQUHFHLYHGRUUHFHLYDEOHWDNLQJLQWRDFFRXQWFRQWUDFWXDOO\GH¿QHGWHUPVRISD\PHQWDQGH[FOXGLQJWD[HVRUGXWLHV
collected on behalf of the government. The Company has concluded that it is principal in all of its revenue arrangements
since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and
credit risks.
([FLVHGXW\LVDOLDELOLW\RIWKHPDQXIDFWXUHULUUHVSHFWLYHRIZKHWKHUWKHJRRGVDUHVROGRUQRW+HQFHWKHUHFRYHU\RIH[FLVH
GXW\ÀRZVWRWKH&RPSDQ\RQLWVRZQDFFRXQWDQGDFFRUGLQJO\UHYHQXHLQFOXGHVH[FLVHGXW\5HIHUQRWHWRWKH¿QDQFLDO
statements.
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account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly,
it is excluded from revenue.
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Sale of goods
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the buyer, on delivery of the goods or as per buyer’s instruction. Revenue from the sale of goods is measured at the fair value
RIWKHFRQVLGHUDWLRQUHFHLYHGRUUHFHLYDEOHQHWRIUHWXUQVDQGDOORZDQFHVWUDGHGLVFRXQWVDQGUHEDWHV
104
NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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rendered.
Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the applicable
LQWHUHVWUDWH,QWHUHVWLQFRPHLVLQFOXGHGXQGHUWKHKHDGµ2WKHU,QFRPH¶LQWKH6WDWHPHQWRI3UR¿WDQG/RVV
Dividend Income
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EHQH¿WVDVVRFLDWHGZLWKWKHGLYLGHQGZLOOÀRZWRWKH&RPSDQ\DQGWKHDPRXQWRI the dividend can be measured reliably.
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*RYHUQPHQWJUDQWVDQGVXEVLGLHVDUHUHFRJQLVHGZKHQWKHUHLVUHDVRQDEOHDVVXUDQFHWKDWWKH&RPSDQ\ZLOOFRPSO\ZLWKWKH
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When the grant or subsidy from the Government relates to revenue, it is deducted from the related expense on a systematic
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intended to compensate. Where the grant or subsidy from the Government relates to revenue and is not relatable to the
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income in equal amounts over the expected useful life of the related asset.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and
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The loan or assistance is initially recognised and measured at fair value of the proceeds received. The loan is subsequently
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a. Superannuation
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b. Provident Fund
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are made to the Fund administered by the Regional Provident Fund Commissioner as per the provisions of
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contribution payable to the Regional Provident fund.
105
NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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a. Gratuity
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of The Payment of Gratuity Act, 1972. Retirement Gratuity for employees, is funded through a scheme of
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RFFXU5HPHDVXUHPHQWVDUHQRWUHFODVVL¿HGWRSUR¿WDQGORVVLQVXEVHTXHQWSHULRGV7KHH[FHVV VKRUWIDOOLQ
the fair value of the plan assets over the present value of the obligation calculated as per actuarial methods as
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this calculation is limited to the past service cost plus the present value of available refunds and reduction in
future contributions.
b. Provident Fund
In respect of the employees covered by the Company’s Employee Provident Fund Trust in Point I b above,
contributions to the Company’s Employees Provident Fund Trust (administered by the Company as per the
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determined based on an actuarial valuation as at the balance sheet date, as an expense.
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for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation
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the extent it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where
Company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months,
the same is presented as non-current liability.
3.13. Leases
As a lessee
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Finance leases are capitalised at the commencement of the lease at the inception date at the fair value of the leased property
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and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.
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106
NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
TXDOLI\LQJDVVHWVLQZKLFKFDVHWKH\DUHFDSLWDOL]HGLQDFFRUGDQFHZLWKWKH&RPSDQ\¶VJHQHUDOSROLF\RQWKHERUURZLQJ
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the asset and the lease term.
As a lessor
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relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised
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¿QDQFLDOOLDELOLWLHVZKHQWKHIDLUYDOXHLVQHJDWLYH&KDQJHVLQWKHIDLUYDOXHRIIRUZDUGFRQWUDFWVDUHUHFRJQL]HGLQWKH
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or substantially improved materials, devices, products, processes, systems or services before the start of commercial
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(b) the Company intends to complete the intangible asset and use or sell it.
(c) the Company has ability to use or sell the intangible asset.
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use or sell the intangible asset.
(f) the Company has ability to measure reliably the expenditure attributable to the intangible asset during its
development.
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107
NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the
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Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that
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Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become
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asset and settle the liability simultaneously.
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comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
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during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates
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recognition of deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may
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108
NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
The Company records a provision for decommissioning costs for its certain manufacturing facilities. Decommissioning
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and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted
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occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
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portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the
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currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
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for annual periods beginning on or after April 1, 2018.
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may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance
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recovery of some assets for more than their carrying amount.
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the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of
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applying this relief must disclose that fact.
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income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration,
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arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the
transaction date for each payment or receipt of advance consideration.
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Committee performs the function of allotment of resources and assessment of performance of the Company. Considering the
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for the purposes of approving the annual operating plan is on a consolidated basis for various products of the Company. As
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the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business
combination and the control is not transitory. Business combinations involving entities under common control are accounted
for using the pooling of interests method. The assets and liabilities of the acquired entity are recognised at their carrying
amounts on the date of the acquisition subject to necessary adjustments required to harmonise accounting policies. The
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or shortfall of the consideration paid over the share capital of acquired entity is recognized as capital reserve under equity.
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114
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 4(a) - Property, plant and equipment
in Crores
Gross Block at Cost Depreciation / Amortisation Net Block
On Deletions
Particulars As at Additions Deletions As at As at For the (accumulated As at As at As at
April 1, March 31, April 1, Year upto the date March 31, March 31, March 31,
2017 2018 2017 of sale) 2018 2018 2017
Land
Freehold 10.07 - - 10.07 - - - - 10.07 10.07
Leasehold 8.27 0.45 - 8.72 0.19 0.22 - 0.41 8.31 8.08
Buildings
Freehold # 361.92 12.65 - 374.57 21.92 14.46 - 36.38 338.19 340.00
Leasehold 12.96 - - 12.96 0.61 0.34 - 0.95 12.01 12.35
Plant &
Equipment ## 577.56 102.79 (0.46) 679.89 121.88 76.69 (0.20) 198.37 481.52 455.68
Furniture and
Fixtures 21.79 5.56 (0.03) 27.32 5.62 3.63 (0.02) 9.23 18.09 16.17
Computer ## 36.43 10.73 (0.14) 47.02 10.20 9.32 (0.13) 19.39 27.63 26.23
Office
Equipment 8.47 2.13 (0.03) 10.57 2.32 1.85 (0.01) 4.16 6.41 6.15
Vehicles 9.18 3.79 (2.26) 10.71 1.04 2.14 (1.28) 1.90 8.81 8.14
Total 1,046.65 138.10 (2.92) 1,181.83 163.78 108.65 (1.64) 270.79 911.04 882.87
Note 4(a)(i)
Title deeds of immovable properties set out in Note 4(a) above, are in the name of the Company except those mentioned below which were transferred to and
vested in the Company pursuant to the respective Schemes of Arrangement in earlier years.
in Crores
Gross Carrying Amount Net Carrying Amount
Particulars No. of As at As at As at As at Held in
title deeds March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 the name of
Leasehold land at Taloja, Maharashtra 1 1.13 1.13 0.98 1.00 Brushworks Paints Limited
Freehold land at Rishra, West Bengal 1 1.36 1.36 1.36 1.36 Berger Auto & Industrial
Coatings Limited
Leasehold land at Sikandrabad, Uttar Pradesh 1 0.27 0.27 0.15 0.15 Rajdoot Paints Private
Limited
Leasehold land at Chandigarh 1 0.05 0.05 0.03 0.03 Rajdoot Paints Private
Limited
Note 4(b) - Intangible assets
in Crores
Gross Block at Cost Depreciation / Amortisation Net Block
On Deletions
Particulars As at Additions Deletions As at As at For the (accumulated As at As at As at
April 1, March 31, April 1, Year upto the date March 31, March 31, March 31,
2017 2018 2017 of sale) 2018 2018 2017
Computer 11.68 1.49 - 13.17 5.61 3.27 - 8.88 4.29 6.07
Software
Total 11.68 1.49 - 13.17 5.61 3.27 - 8.88 4.29 6.07
115
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
## (i) Includes following assets ( Color Bank ) given under operating lease arrangements in Crores
Gross Block at Cost Depreciation / Amortisation Net Block
On Deletions
Particulars As at Additions Deletions As at As at For the (accumulated As at As at As at
April 1, March 31, April 1, Year upto the date March 31, March 31, March 31,
2017 2018 2017 of sale) 2018 2018 2017
Plant & 171.41 42.50 - 213.91 69.13 39.40 - 108.53 105.38 102.28
Equipment
Computer 19.21 3.93 - 23.14 7.80 4.31 - 12.11 11.03 11.41
Total 190.62 46.43 - 237.05 76.93 43.71 - 120.64 116.41 113.69
(ii) Also refer note 33
Note 4(c) - Capital work in progress in Crores
Gross Block at Cost
Particulars As at As at
April 1, 2017 Additions Capitalisation March 31, 2018
Buildings 10.10 6.86 (12.65) 4.31
Plant & Equipment 45.65 154.43 (117.14) 82.94
Other assets 0.48 7.85 (8.31) 0.02
Total 56.23 169.14 (138.10) 87.27
Buildings
Freehold # 284.22 77.70 - 361.92 10.46 11.46 - 21.92 340.00
Leasehold 9.80 3.16 - 12.96 0.29 0.32 - 0.61 12.35
Plant & 409.69 170.55 (2.68) 577.56 58.54 65.66 (2.32) 121.88 455.68
Equipment ##
Furniture and 18.19 3.67 (0.07) 21.79 2.33 3.35 (0.06) 5.62 16.17
Fixtures
Computer ## 25.22 16.48 (5.27) 36.43 6.08 9.15 (5.03) 10.20 26.23
Office 6.62 2.00 (0.15) 8.47 0.84 1.63 (0.15) 2.32 6.15
Equipment
Vehicles 8.15 2.65 (1.62) 9.18 0.17 1.99 (1.12) 1.04 8.14
Total 779.24 277.20 (9.79) 1,046.65 78.80 93.66 (8.68) 163.78 882.87
Also Refer Note 4(a)(i)
@ Also Refer Note 36
# Partly on leasehold land
116
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
## (i) Includes following assets ( Color Bank ) given under operating lease arrangements in Crores
Gross Block at Cost Depreciation / Amortisation Net Block
On Deletions
Particulars As at Additions Deletions As at As at For the (accumulated As at As at
April 1, March 31, April 1, Year upto the date March 31, Marchin31,
Crores
2016@ 2017 2016@ of sale) 2017 2017
Plant & 123.68 47.73 - 171.41 33.18 35.95 - 69.13 102.28
Equipment
Computer 14.52 4.69 - 19.21 3.76 4.04 - 7.80 11.41
Total 138.20 52.42 - 190.62 36.94 39.99 - 76.93 113.69
@ Also Refer Note 36
(ii) Also refer note 33
in Crores
Gross Block at Cost
117
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
At deemed cost:
118
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
119
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
As at As at
March 31, 2018 March 31, 2017
in Crores
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
# Excise duty disclosed in Statement of Profit and Loss for the three months period ended June 30, 2017 is net of excise duty benefit of 8.16 crores (Year ended
March 31, 2017: 27.65 crores). Subsequent to the implementation of GST w.e.f July 1, 2017, the Company has claimed subsidy available under "Scheme of
Budgetary Support under GST Regime to the eligible units" located in specified States amounting to 28.38 crores (March 31, 2017: Nil).
120
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
121
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
* Refer note 42
Trade receivables are non-interest bearing and generally has credit period from 30 to 90 days
For terms and conditions relating to related party receivables, refer Note 35.
122
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
# Deposits at Banks earn interest between 7.50% to 7.55% and are made for periods between 61 and 92 days
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following: in Crores
As at As at
March 31, 2018 March 31, 2017
# In accordance with the Scheme of Amalgamation referred in Note 36 , the authorized share capital of BJN India has merged into and combined with the
Authorised Share capital of the Company.
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
c) Equity shares held by the holding company and/or the subsidiaries/associates of holding company
As at As at
March 31, 2018 March 31, 2017
d) Details of Shareholders holding more than 5 percent of Equity Shares in the Company
As at As at
March 31, 2018 March 31, 2017
No. of Shares % holding No. of Shares % holding
U K Paints (India) Private Limited (Holding Company) 48,65,45,399 50.11% 48,65,45,399 50.11%
Jenson & Nicholson (Asia) Limited, UK 14,06,56,782 14.49% 14,06,56,782 14.49%
Nalanda India Fund Limited 4,67,19,295 4.81% 5,07,49,406 5.23%
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest,
the above shareholding represents both legal and beneficial ownership of shares as declared under the relevant provisions of the Companies Act,2013
e) Shares reserved for issue under Employee Stock Options:
For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company, refer Note 32.
f) Fully paid up equity shares allotted by way of bonus shares
27,73,91,165 bonus shares were issued and allotted during the previous year by the Company to eligible members holding ordinary shares of 1 each (ratio
2:5) by capitalizing 27.74 Crores out of the sum standing to the credit of Company’s Securities Premium Account.
124
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Notes:
Securities Premium Account- Premium received on equity shares issued including those under Employee Stock Option Plan are recognised in the securities
premium account net of utilization for bonus shares issued etc.
Retained Earnings - Retained earnings includes surplus in the Statement of Profit and Loss, Ind-AS related adjustments as on the date of transition, remeasu-
ment gains/ losses on defined benefit plans and Revaluation Reserve aggregating to Nil (March 31, 2017: 0.83 crores ) that had arisen from revaluation of
Leasehold Land, Freehold Land and Freehold Buildings of the Company in 1989, 1985 and 1993 done by approved valuers. The aforementioned revaluation
reserve is not a free reserve as per the Companies Act, 2013 and hence is not available for distribution as dividend.
General Reserve - Under the erstwhile Indian Companies Act 1956, a general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations, to ensure that if a dividend distribution in a given year is more than 10% of the paid capital of the
Company for that year, the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act
2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.
Share based payment reserve - The Company has two Employee Stock Option Plan (ESOP) under which options to subscribe for the Company’s shares have
been granted to specific employees.
The Share based payment reserve is used to recognise the value of equity-settled share-based payments to employees as part of their remuneration. The year
end balance is net off options exercised by the concerned employees Refer to Note 32 for further details of these plans.
Capital redemption reserve - Represents amount equal to the face value of equity shares transferred at the time of buy-back of shares
125
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Non-Current Current
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Provision for decommissioning has been recognised towards decommissioning/dismantling obligations associated with the Company's
126
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 14: Income Taxes
Note 14a. Deferred tax assets & liabilities (net)
in Crores
As at As at Statement of Profit & Loss
and other comprehensive income
Nature - (liability) / asset March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Arising out of temporary differences in depreciable assets 63.05 54.91 (8.14) (10.86)
Expenses allowable on payment / actual basis for tax purposes 5.53 3.75 (1.78) (2.69)
Financial Assets at fair value through profit and loss (1.54) (1.03) 0.51 0.91
in Crores
Reconciliation of deferred tax liabilities(net) As at As at
Tax income/(expense) during the period recognised in Statement of Profit and Loss 2.11 (14.34)
During the year ended March 31, 2018 and March 31, 2017, the Company has paid dividend to its shareholders. This has resulted in payment of Dividend
Distribution Tax (DDT) to the taxation authorities. The Company believes that DDT represents additional payment to taxation authority on behalf of the
shareholders.
127
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
14(b) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for March 31, 2018 and March 31, 2017:
Income tax on the Company's taxable profit differs from the theoretical amount that would have arisen had the enacted rate of corporate tax
Profit before income tax multiplied by standard rate of corporate tax in India of 229.04 230.39
Effects of:
Additional deduction allowed in respect of R&D activities carried out by the company (2.22) (4.61)
Difference in tax on exceptional item (sale of business) (refer Note 27) - (10.00)
Utilisation of unrecognised tax losses of BJN India on amalgamation (Refer note 36) (0.80) -
230.59 218.61
128
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Others
Secured
From Banks
Bank overdraft 3.02 5.19
Cash credit 140.25 30.20
Buyers' Credit (in foreign currency) - 84.29
Total 143.27 119.68
Bank overdraft are repayable on demand and carry interest rate of MIBOR+ 130 bps (March 31, 2017: MIBOR + 130 bps)
Cash Credits from banks are secured by way of first charge on book debts and other current assets ranking pari passu between the lenders (first pari passu charge
over entire current assets). Cash Credit is repayable on demand and carries interest at 7.30 % - 11.75% per annum (March 31, 2017: 8%-10% per annum).
The buyers' credit is repayable in six months and carries interest at Nil (March 31, 2017: LIBOR +0.25%) and is secured by hypothecation of stocks and book
debts, both present and future.
Amendments to Ind AS 7 Statement of Cash Flows:
The amendments to Ind AS 7 require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising
from cash flows and non-cash changes (such as foreign exchange gains or losses). The Company has provided the information for both the current and the
comparative period as under
Particulars April 1, 2017 Cash flows Exchange difference March 31, 2018
Current Borrowings
Bank overdraft 5.19 (2.17) - 3.02
Cash credit 30.20 110.05 - 140.25
Buyers' Credit 84.29 (84.96) 0.67 -
129
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at As at
March 31, 2018 March 31, 2017
Acceptances 137.08 111.93
Other than acceptances
- Total outstanding dues of Micro, Small & Medium Enterprises (See Note below) 17.84 11.25
- Total outstanding dues of creditors other than Micro, Small & Medium Enterprises
[includes 45.94 Crores (March 31, 2017: 37.70 Crores)] payable to related parties 777.65 627.14
` in Crores
As at As at
March 31, 2018 March 31, 2017
Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 are
provided as under to the extent the Company has received intimation from the suppliers
regarding their status under the Act.
Principal amount remaining unpaid at the end of the year 16.33 10.17
Interest due thereon remaining unpaid at the end of the year 1.51 1.08
17.84 11.25
Delayed payment of Principal amount paid beyond appointed date during the entire financial year 27.00 16.48
Interest actually paid under Section 16 of the Act during the entire accounting year - -
Amount of Interest due and payable for the period of delay in making the payment (which have 0.33 -
been paid but beyond the appointed day during the year) but without adding interest specified
under this Act.
Amount of Interest due and payable for the period (where principal has been paid but interest
under the MSMED Act not paid) 0.06 0.17
Interest accrued and remaining unpaid at the end of the year 0.43 0.18
The amount of further interest remaining due and payable even in succeeding years, until such
date when the interest dues as above are actually paid to the Micro and Small Enterprises for the
purpose of disallowances as deductible expenditure under Section 23 of this Act 1.51 1.08
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
As at As at
March 31, 2018 March 31, 2017
At Amortised Cost
22.52 14.22
At Amortised cost
As at As at
March 31, 2018 March 31, 2017
At Amortised Cost
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
As at As at
March 31, 2018 March 31, 2017
At Amortised Cost
Unpaid Dividends (to be credited to Investor Education and Protection Fund as and when due) 5.54 4.84
Others
* Refer Note 42
As at March 31, 2018, proposed dividend on equity shares are subject to approval in the ensuing Annual General Meeting. Pending such approval proposed
dividend and dividend distribution tax thereon have not been recognised in these financial statements
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Sale of products (including excise duty) [refer note below] 4,792.67 4,708.73
Revenue from operations for period up to June 30, 2017 includes excise duty. From July 1,2017 onwards excise duty and most indirect taxes in India have been
replaced by Goods and Service Tax (GST). The Company collects GST from its customers on behalf of the Government and hence, GST is not included in
Revenue from operations.Sale of products includes excise duty collected from customers of 115.58 crores (March 31, 2017: 498.20 crores). Sale of products
net of excise duty is 4,677.09 crores (March 31, 2017 4,210.53 crores). In view of the aforesaid change in indirect taxes, Revenue from operations for year
ended March 31, 2018 is not comparable with the amount reported for the year ended March 31, 2017
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 22. (Increase)/decrease in inventories of finished goods, work-in-process and traded goods
in Crores
* Includes reversal of excise duty on Inventory as at March 31, 2017. Due to implementation of GST in the current year, there is no excise duty element on
the inventory as at March 31, 2018
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
# Bad debts written off 8.38 crores ( March 31, 2017 7.88 crores)
As Auditor:
Audit fees 0.47 0.33
Tax audit fee 0.04 0.05
Miscellaneous certificates and other matters 0.08 0.18
Reimbursement of expenses 0.02 0.03
Total 0.61 0.59
a) Gross amount required to be spent by the Company during the year 10.34 8.45
Corporate Social Responsibility expensed 10.43 Crores (2016-17: 8.18 Crores) includes Company’s own programme for promoting employment
enhancing vocational skill named 'iTrain'.
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Profit on transfer of Company's paint division relating to 4 wheeler passenger cars and SUVs,
3 wheelers and related ancillaries - 86.67
Total - 58.67
1. During the previous year, the Company's paint division ("the Business") relating to 4 wheeler passenger cars and SUVs, 3 Wheelers and related ancillaries
was transferred to Berger Nippon Paint Automotive Coatings Private Limited or BNPAC (Formerly known as BNB Coatings India Private Limited), an
existing joint venture between Berger Paints India Limited and Nippon Paints Automotive Coatings Co. Ltd., Japan after the close of business hours of 30th
June, 2016 on a slump sale basis at a consideration of 90 crores, paid in cash. By virtue of being a joint venture where Berger Paints India Limited holds
49% of the paid up share capital, BNPAC may be deemed to be a related party and the transaction was done at an Arm's length basis. The exceptional item
for the year ended March 31, 2017 represents the profit on the transfer of the Business, being 86.67 crores, which is subject to tax.
2. The Company had provided for impairment in the carrying value of its investment in its wholly owned subsidiary, Berger Paints Cyprus Limied (BPCL ) on
account of losses sustained by the ultimate wholly owned subsidiary Berger Paints Overseas Limited (BPOL ) due to downturn in Russian economy which
were reflected in the consolidated financial position of the Company. The Company had made an assessment of the fair value of the investments in Berger
Paints Overseas Limited taking into account past business performance, prevailing business conditions and revised expectations about future performance.
Based on the above factors and as matter of prudence provision of 28 crores towards impairment of such investment had been recognised in the accounts.
The recoverable amount of the investment was determined at 37.12 crores, which was based on its value in use. This value in use calculation was carried
out taking into account the discount rate of 14% per annum.The Company is in the process of reorgansing its business operation in that country and based on
such plan no further impairment has been considered necessary.
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity
shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares
outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into
equity shares.
The following reflects the income and share data used in the basic and diluted EPS computations:
Net Profit for calculation of Basic and Diluted Earnings Per Share ( in crores) (I) 431.84 444.09
Weighted average number of shares (II)
- Basic 97,10,00,633 97,09,18,392
- Diluted (refer note below) 97,12,47,574 97,10,59,627
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Effect of dilution:
Weighted average number of equity shares in calculating Basic Earnings Per Share 97,10,00,633 97,09,18,392
Weighted average number of equity shares in calculating diluted EPS 97,12,47,574 97,10,59,627
The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets & liabilities affected in future periods.
The key assumptions concerning the future and other key sources of estimation, uncertainty at the reporting date, that have a significant risk of causing a materi-
al adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when
they occur. In the process of applying the Company’s accounting policies, management has made the following judgements, estimates and assumptions, which
have the most significant effect on the amounts recognised in the Financial Statements.
The cost and the present value of the defined benefit gratuity plan and other post-employment leave encashment benefit are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These include the determination of
appropriate discount rate, estimating future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. For further details refer Note 31.
When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their
fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 37 for further disclosures.
Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of
company's assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are
based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
Decommissioning Liability
Decommissioning Liability has been recognised for items of property plant and equipment built or installed on specified leasehold land the terms of which said
leases include decommissioning of such assets on expiry of the lease prior to handing over to the lessor. The decommissioning costs as at the end of the lease
period have been estimated based on current costs by the Company's own technical experts and have been escalated to the end of the leasehold period using
suitable inflation factors. The said escalated cost as at the end of the lease period is now discounted to the present value of such liability by applying Company's
weighted average cost of capital.
Impairment of Investment
Based on indication that the carrying value of investment in a stepdown subsidiary may be lower than the fair value, an impairment assessment has been carried
out. Market related information and estimates are used to determine the recoverable value of the investment. Key assumptions on which management has based
its determination of recoverable amount include estimated long term growth rates, weighted average cost of capital and estimated operating margins. Cash flow
projections take into account past expereince and represent management's best estimate about future developements.
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
in Crores
Particulars 2017 - 2018 2016 - 2017
Expense recognised in the Statement of Profit & Loss:
Cost of current service and plan ammendments 3.93 1.65
Net Interest Cost/(Income) 0.07 (0.15)
Net Cost Recognised in the Statement of Profit & Loss 4.00 1.50
140
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
(ii) The principal assumptions used in determining gratuity obligations for the Company's plans are shown below
Significant Actuarial Assumptions March 31, 2018 March 31, 2017
Discount Rate 7.65% 7.30%
Employee turnover Age wise 0.10%-0.50% Age wise 0.10%-0.50%
Mortality Rate Indian Assured Lives Indian Assured Lives
(Mortality 2006-08 modified) Ult (Mortality 2006-08 modified) Ult
The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as
supply and demand in the employment market
Assumptions regarding future mortality experience are set in accordance with the published statistics by the Life Insurance Corporation of India
The discount rate is based on the government securities yield
The Company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards.
(iii) Major category of Plan Assets of the fair value of the total plan assets are as follows:-
March 31, 2018 March 31, 2017
Assets under scheme of insurance 100% 100%
(iv) A quantitative sensitivity analysis for significant assumption as at March 31, 2018 is as shown below
in Crores
March 31, 2018 March 31, 2017
Assumptions Discount rate Discount rate
Sensitivity Level 1% increase 1% decrease 1% increase 1% decrease
Impact on defined benefit obligation (2.72) 3.18 (2.59) 3.05
in Crores
March 31, 2018 March 31, 2017
Assumptions Future Salary increase Future Salary increase
Sensitivity Level 1% increase 1% decrease 1% increase 1% decrease
Impact on defined benefit obligation 3.17 (2.77) 2.56 (2.38)
141
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Within the next 12 months (next annual reporting period) 0.55 0.69
Between 2 and 5 years 10.99 9.25
Between 5 and 10 years 17.11 13.23
(b) Provident Fund
Provident Fund for certain eligible employees is administered by the Company through "Berger Paints Provident Fund (Covered)" as per the provisions of the
Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The Rules for such a trust provide that in a provident fund set up by the employer, any
shortfall in the rate of interest on member contributions as compared to the relevant rate of interest declared by the Goverment of India for this purpose will
have to be met by the employer. Such provident fund would in effect be a defined benefit plan in accordance with the requirement of Ind AS 19 - Employee
Benefits.
Based on valuation of related defined benefit obligation and plan assets at the year end carried out by an independent actuary no provision has been
considered necessary in this regard in these financial statements Key actuarial assumptions are as follows
2017-18 2016-17
Discount rate 7.65% 7.30%
Expected rate of return on Plan Assets 8.55% 8.65%
` in Crores
2017-18 2016-17
Provident and Family Pension Fund (applicable for eligible employees whose provident fund accounts 1.80 1.88
are maintained with the Regional Provident Fund Commissioner)
Superannuation Fund 1.99 1.95
142
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 32. Employee Stock Option Plan
The Berger Paints India Limited – Employee Stock Option Plan [‘the Plan’] was approved at the Annual General Meeting of the Company held on 29th July,
2010. The objective of the plan is to:
The Berger Paints India Limited – Employee Stock Option Plan 2016 [‘the Plan’] was approved at the Annual General Meeting of the Company held on 3rd
August, 2016. The objective of the plan is to:
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
e) The Exercise Price of an Option shall be the face value of 1/- per share
f) Cashless exercise of the Options are not permitted under the Plan. Participants to pay full Aggregate Exercise Price upon the Exercise of the Vested
Options.
g) Subject to Participant’s continued employment as defined in Clause 14 of the Plan the Unvested Options shall vest with the Participant automatically
in accordance with the following schedule : a) 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the first anni
versary of the Grant Date; b) further 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the second anniversary
of the Grant Date and c) balance 34% of the total Options granted, rounded up to the whole number such that the total number of Options vested shall
add up to 100%, shall vest on the third anniversary of the Grant Date.
h) The Date of grant of options : 9th November, 2016.
As at As at
March 31, 2018 March 31, 2017
a. Number of Stock Options outstanding (ESOP Plan 2010: Grant I) - -
Number of Stock Options outstanding (ESOP Plan 2010: Grant II) - -
Number of Stock Options outstanding (ESOP Plan 2010: Grant III) 1,390 1,390
Number of Stock Options outstanding (ESOP Plan 2010: Grant IV) 1,172 1,172
Total Number of Options in force (Additional grant Options 1,025 1,025
vested in lieu of bonus issues from ESOP 2010 balances
on 21.11.2016)
Number of Stock Options outstanding (ESOP Plan 2016: Grant I) 88,022 1,38,270
Number of Stock Options outstanding (ESOP Plan 2016: Grant II) 1,56,384 -
2,47,993 1,41,857
b. Option granted during the year
ESOP Plan 2016: Grant II 1,61,184 -
ESOP Plan 2016: Grant I : 1,40,811; (34,653 Additional Grant on 21.11.2016 in lieu of bonus - 1,75,464
issue from ESOP 2010 balance shares)
c Number of Options vested (ESOP Plan 2010: Grant I) - -
Number of Options vested (ESOP Plan 2010: Grant II) - -
Number of Options vested (ESOP Plan 2010: Grant III) - -
Number of Options vested (ESOP Plan 2010: Grant IV) - 84,280
Number of Options vested (ESOP Plan 2016: Grant I) 45,397 -
Number of Options vested (ESOP Plan 2016: Grant II) - -
Number of Additional grant Options vested in
lieu of bonus issues from ESOP 2010 balances on 21.11.2016 - 34,653
45,397 1,18,933
d. Number of Options exercised (ESOP Plan 2010: Grant I) - -
Number of Options exercised (ESOP Plan 2010: Grant II) - -
Number of Options exercised (ESOP Plan 2010: Grant III) (834 options exercised during 2016-17
were vested during the year 2015-16) - 834
Number of Options exercised (ESOP Plan 2010: Grant IV) - 83,108
144
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at As at
March 31, 2018 March 31, 2017
Numberof
Number ofOptions
Optionsexercised
exercised(ESOP
(ESOPGrant
Plan 2010: Grant
III) (834 I) exercised during 2016-17 were vested
options - 44,781 834 -
Number
during theofyear
Additional grant Options exercised in lieu of bonus issues from
2015-16)
ESOP 2010
Number balances
of Options on 21.11.2016
exercised (ESOP Grant IV) - - 33,628
83,108
Number of Options exercised (ESOP Plan 2016) 44,781
44,781 1,17,570
-
Number of Additional grant Options exercised in lieu of bonus issues from ESOP 2010 - 33,628
e. Number of Shares arising on exercise (ESOP Plan 2010: Grant I) - -
Number of Shares arising on exercise (ESOP Plan 2010: Grant II) - -
Number of Shares arising on exercise (ESOP Plan 2010: Grant III) - 834
Number of Shares arising on exercise (ESOP Plan 2010: Grant IV) - 83,108
Number of Shares arising on exercise (ESOP Plan 2016: Grant I) 44,781 -
Number of Additional shares arising as result on exercise from ESOP 2010 balances on 21.11.2016 - 33,628
44,781 1,17,570
f. Number of Options lapsed (ESOP Plan 2010: Grant I) - -
Number of Options lapsed (ESOP Plan 2010: Grant II) - -
Number of Options lapsed (ESOP Plan 2010: Grant III) - -
Number of Options lapsed (ESOP Plan 2010: Grant IV) - 1,172
Number of Options lapsed (ESOP Plan 2016: Grant I) 5,467 2,541
Number of Options lapsed (ESOP Plan 2016: Grant II) 4,800 -
10,267 3,713
g. Variation of terms of Option None during the None during the
period period
145
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at As at
March 31, 2018 March 31, 2017
Exercised during the year 1 1
Expired during the year 1 1
Outstanding at the end of the year 1 1
Exercisable at the end of the period 1 1
j. Weighted Average share price of options exercised during the year on the date of exercise 1 1
k. Weighted Average fair value of the Options granted during the year
i. ESOP Plan 2016 Grant I (Fair value as on 31.03.2018) NA 236.35
ii. ESOP Plan 2016 Grant II (Fair value as on 31.03.2018) 250.74 NA
iii. Additional grant in lieu of bonus issues from ESOP Plan 2010 balances of Grant III and IV (Fair
value as on 31.03.2017) NA 238.99
l. A description of the method and significant assumptions used during the year to estimate the fair value of
Options granted, including the following weighted average information:-
The Black Scholes Option Pricing Model for dividend paying stock has been used to compute the fair
value of the Options. The significant assumptions are:
i. Date of grant
a. ESOP Plan 2016 09.11.2016 09.11.2016
b. Additional grant in lieu of bonus issues from ESOP Plan 2010 balances 21.11.2016 21.11.2016
ii. Weighted average share price 256.70 242.10
iii. Exercise Price 1 1
iv. Risk Free Interest rate 7.40% 6.69%
v. Expected Life:
a. For options vested on 01.08.2015 0.33 years 1.33 years
b. For options vested on 01.08.2016 1.33 years 2.33 years
c. For options vested on 09.11.2017 2.61 years from 3 years from
the vesting day the vesting day
d. For options yet to be vested 3 years from the 3 years from the
vesting day vesting day
146
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at As at
March 31, 2018 March 31, 2017
ix. The price of the underlying share in the market at the time of option grant:
a. ESOP Plan 2010: Grant-III- 31.07.2012 138.70 138.70
b. ESOP Plan 2010: Grant IV- 31.07.2013 205.45 205.45
c. ESOP Plan 2016- 08.11.2016 234.85 234.85
d. Additional grant on 21.11.2016 in lieu of bonus issues from ESOP Plan 2010 balances- 187.10 187.10
18.11.2016
e. ESOP Plan 2016 (Grant II)- 09.11.2017 253.70 NA
x.Time to maturity
a. For options vested on 01.08.2015 (Grant III) 0.33 years 1.33 years
b. For options vested on 01.08.2016 (Grant IV) 1.33 years 2.33 years
c. Additional grants vested on 21.11.2016 0.33 years and 1.33 years and
1.33 years 2.33 years
d. ESOP 2016 (Grant I) vested on 08.11.2017 2.61 NA
e. For options yet to be vested 3 years from the 3 years from the
vesting day vesting day
Expected volatility during the expected term of the ESOP is based on historical volatility of the observed market prices of the Company's publicly traded
equity shares during a period equivalent to the expected term of the ESOP.
The fair values of our ESOP are based on the market value of our stock on the date of grant.
m. The following table summarizes information about Share Options outstanding as at year end:-
As at
Range of exercise prices March 31, 2018
per option ( ) No. of options outstanding Weighted average remaining Weighted average exercise price
contractual life ( )
1 1,946 0.33 years 1
1 1,641 1.33 years 1
1 88,022 2.61 years 1
1 1,56,384 Yet to be vested 1
As at
Range of exercise prices March 31, 2017
per option ( ) No. of options outstanding Weighted average remaining Weighted average exercise price
contractual life ( )
1 1,946 1.33 years 1
1 1,641 2.33 years 1
1 1,38,270 Yet to be vested 1
147
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 33.Leases
Operating lease — Company as lessee
The Company's leasing arrangements for various depots, offices etc are in the nature of operating leases which are cancellable at the option of the Company.
These leases have a life between 1 year to 20 years ( March 31, 2017 - 1 year to 20 year ) which is renewable by mutual consent of concerned parties. No
contingent rent is payable by the Company in respect of the above leases. Some of the lease agreements have price escalation clauses. Related lease rentals have
been disclosed under the head "Rent" in Note 26 of Statement of Profit and Loss. There are no restrictions placed upon the Company by such leases.
Operating lease — Company as lessor
The Company has given Color bank (tinting machines) on operating lease to its dealers. The Company enters into 3- 5 years cancellable lease agreements.
However the corresponding lease rentals may be receivable for a shorter period or may be waived off/refunded on acheivement of certain sales targets by the
concerned dealers.The minimum aggregate lease payments to be received in future is considered as Nil. Accordingly the disclosure of the minimum lease
payments receivable at the Balance sheet date is not made. The amounts received from customers pending to be refunded back are recognised as liabilities and
are included in "Deposits" under "Other financial liabilities" in Note 12. Also refer note 4.
34. Commitment and Contingencies
a. Commitments in Crores
As at As at
March 31, 2018 March 31, 2017
a)Estimated amount of contracts remaining to be executed on capital expenditure and 38.55 37.42
not provided for (net of advances)
b. Contingent Liabilities
(i) Claims against the Company not acknowledged as debts: in Crores
As at As at
March 31, 2018 March 31, 2017
Income Tax - 15.83
Sales Tax 28.45 27.33
Excise Duty, Service Tax, Customs 25.79 27.28
54.24 70.44
The Company has been advised by its lawyers that none of the claims are tenable and is therefore contesting the same and hence has not been provided for in the
books. The future cash flows on account of the above cannot be determined unless the judgements/decisions are received from the ultimate judicial forums. No
reimbursements are expected to arise to the Company in repect of above cases. in Crores
As at As at
March 31, 2018 March 31, 2017
a) Immovable assets aggregating 236.40 crores ( March 31, 2017: 232.95 crores) have been mortgaged by deposit of title deeds in favour of BNP
Paribas & Standard Chartered towards loan extended to its subsidiary, M/s Lusako Trading Limited a Subsidiary of the Company
b) The loan is utilised by the said subsidiary for its business pruposes. Also refer note 12 and 35
148
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
II. Other related parties with whom transactions have taken place during the year:
149
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 35(b)
A. During the year the following transactions were carried out with the related parties in the ordinary course of business:
in Crores
Transaction Related Party 2017-18 2016-17
Sale of Goods Berger Becker Coatings Private Limited 1.57 1.09
Berger Jenson & Nicholson (Nepal) Private Limited 9.54 6.00
Berger Nippon Paint Automotive Coatings Private Limited 18.67 15.94
Wazir Estates Private Limited 0.04 0.07
Berger Paints (Bangaladesh) Limited 0.70 0.48
Berger Paints Overseas Limited 1.10 0.39
U K Paints (India) Private Limited 0.40 0.40
Saboo Coatings Private Limited 1.75 -
Mr. K S Dhingra * 0.03 0.00
Mr. G S Dhingra * 0.00 0.00
Seaward Packaging Private Limited * 0.00 0.00
Bolix S.A. - 0.07
150
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Transaction Related Party 2017-18 2016-17
Royalty Income Berger Jenson & Nicholson (Nepal) Private Limited 1.85 1.93
Berger Paints (Bangaladesh) Limited 0.29 0.10
Interest Income Saboo Coatings Private Limited 0.09 -
Purchase of Goods U K Paints (India) Private Limited 68.15 62.24
Berger Becker Coatings Private Limited - 0.16
Saboo Coatings Private Limited * 0.00 -
Seaward Packaging Private Limited 37.88 31.20
Berger Nippon Paint Automotive Coatings Private Limited 0.71 0.07
Processing Charges U K Paints (India) Private Limited 18.57 15.75
Beepee Coatings Private Limited 24.45 24.89
Seaward Packaging Private Limited - 0.04
Rent Expenses U K Paints (India) Private Limited 3.94 3.84
Flex Properties Private Limited 0.18 0.16
Beepee Coatings Private Limited 0.06 0.07
Kanwar Properties Private Limited 0.38 -
Mr. K S Dhingra 0.24 0.19
Mr. G S Dhingra 0.24 0.19
Security Deposit Given U K Paints (India) Private Limited - 0.05
Security Deposit Refunded U K Paints (India) Private Limited 0.11 -
Processing Income Berger Nippon Paint Automotive Coatings Private Limited 2.22 1.38
Rendering of Manpower Services U K Paints (India) Private Limited 0.02 -
Berger Becker Coatings Private Limited 0.16 0.20
Machinery Rental Income Beepee Coatings Private Limited 0.39 0.43
Business Transfer in relation Berger Nippon Paint Automotive Coatings Private Limited - 90.00
to the 4 wheelers passenger
cars and SUV, 3 wheelers
and related ancillaries
(Refer Note No 26)
Contribution to Provident Fund Berger Paints Provident Fund (Covered) 13.26 12.70
Contribution to Gratuity Fund BAICL Employees Gratuity Fund 0.05 0.11
Contribution to Superannuation Fund Berger Paints Officers (Non-Management Category) Superannuation Fund 0.58 0.64
Berger Paints Management Staff Superannuation Fund 1.28 1.34
BAICL Employees Superannuation Fund 0.08 0.06
Directors Commission & Fees Mr. K S Dhingra 0.10 0.10
Mr. G S Dhingra 0.10 0.10
Mr. Kamal Ranjan Das 0.03 0.03
Mr. Naresh Gujral 0.07 0.07
Mr. Dhirendra Swarup 0.07 0.07
151
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
152
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Transaction Related Party 2017-18 2016-17
Berger Paints (Bangaladesh) Limited 0.67 0.84
Berger Paints (Cyprus) Limited 2.44 0.08
Lusako Trading Limited - 0.32
Berger Paints Overseas Limited 1.10 -
Corporate Guarantee Lusako Trading Limited 248.47 247.68
outstanding (Also Refer Note
34 for details of security given) Others 10.46 5.50
in Crores
C. Details of remuneration to Key Managerial Personnel is given below
Particulars 2017-18 2016-17
- Short-term employee benefits 4.80 4.32
- Post employment benefits 0.51 0.36
- Share based payment 0.07 0.21
5.38 4.89
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel. No share
options have been granted to the non-executive members of the Board of Directors under this scheme. Refer to Note 31 for further details of the scheme.
* Refer Note 42
Notes:
Terms and conditions of transactions with related parties:
The transactions with related parties are made on terms equivalent to those that prevail in Arm’s length transactions. Outstanding balances at the year-end are
unsecured and interest free and settlement occurs in cash except unless otherwise mentioned.
Note 36
During the year, National Company Law Tribunal has approved the scheme of amalgamation (‘Scheme’) between the Company and BJN Paints India Limited
(‘BJN’), India, a wholly owned step down subsidiary of the Company from the Appointed Date of April 1, 2017. The Scheme became effective from March 29,
2018 after completion of all related regulatory formalities. In accordance with the above Scheme and the accounting treatment prescribed for merger of entities
under common control in IND AS 103 – Business Combination (pooling of interests method), the financial statements of the Company for the previous year have
been restated with effect from 1st April 2016, being the earliest period presented. Consequently, for the previous year, revenue of 114.99 crores and loss before
tax of 2.35 crores appearing in the books of BJN has been included in the revenue and profit before tax of the Company in the above financial statements for
that year. In respect of the Balance Sheet, all assets and liabilities and differential value of equity have been recognised by the Company.
Summary of the assets/ liabilities merged is as under-
in Crores
Particulars As at As at
April 1, 2016 March 31, 2017
Property, Plant and Equipment 5.29 5.82
Other Non-Current Assets 0.25 0.11
Net Current Assets # (11.64) (14.63)
Non-Current Liabilities 0.67 0.67
Equity 6.77 9.37
# included cash and cash equivalents of 3.47 Crores as at April 1, 2016 and 3.69 Crores as at March 31, 2017
In accordance with the Scheme of Amalgamation referred in Note 36 above, the authorized share capital of BJN India has merged into and combined with the
Authorised Share capital of the Company.
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
a) Financial assets and liabilities measured at fair value through profit and loss at March 31, 2018
in Crores
Level 1 Level 2 Level 3 Total
Financial Assets
Investment in Mutual Funds - 227.59 - 227.59
Investment in unquoted equity instruments* - - 0.00 0.00
Financial Liabilities
Financial Guarantee Contracts - - 2.02 2.02
Financial assets and liabilities measured at fair value through profit and loss at March 31, 2017
in Crores
Level 1 Level 2 Level 3 Total
Financial Assets
Investment in Mutual Funds 367.27 - 367.27
Investment in unquoted equity instruments* - - 0.00 0.00
Financial Liabilities
Financial Guarantee Contracts - - 2.94 2.94
Derivatives not designated as hedges - 4.11 - 4.11
*Refer note 42
154
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market factors. Market risk comprises
three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk , liquidity risk and commodity risk. Financial instruments affected
by market risk include loans and borrowings, deposits, FVTOCI investments and financial derivative.
The sensitivity analyses in the following sections relate to the position as at March 31, 2018 and March 31, 2017.
The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the
proportion of financial instruments in foreign currencies are all constant at March 31, 2018.
The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations.
The following assumptions have been made in calculating the sensitivity analyses:
Ź7KHVHQVLWLYLW\RIWKHUHOHYDQWSURILWRUORVVLWHPLVWKHHIIHFWRIWKHDVVXPHGFKDQJHVLQUHVSHFWLYHPDUNHWULVNV7KLVLVEDVHGRQWKHILQDQFLDODVVHWVDQG
financial liabilities held at March 31, 2018 and March 31, 2017
Ź7KHVHQVLWLYLW\RIHTXLW\LVFDOFXODWHGDVDW0DUFKIRUWKHHIIHFWVRIWKHDVVXPHGFKDQJHVRIWKHXQGHUO\LQJULVN
The Company has incurred short term debt to finance its working capital , which exposes it to interest rate risk. Borrowings issued at variable rates expose the
Company to interest rate risk. Borrowing issued at fixed rates expose the Company to fair value interest rate risk. The Company's interest rate risk management
policy includes achieving the lowest possible cost of debt financing, while managing volatility of interest rates, applying a prudent mix of fixed and floating debt
through evaluation of various bank loans and money market instruments .
Some of the Company's borrowings are index linked, that is their cost is linked to changes in the London inter-bank offer rate (Libor) .
Although the Company has significant variable rate interest bearing liabilities at March 31, 2018, there would not be any material impact on pre-tax profit and
pre-tax equity of the Company on account of any anticipated fluctuations in interest
The Company has a policy of entering into foreign exchange forward contracts to manage risk of foreign exchange fluctuations on borrowings and payables.
These contracts are not designated in hedge relationships and are measured at fair value through profit or loss. Foreign currency risk is the risk that the fair value
or future cash flows of an exposure will fluctuate because of changes in exchange rates of any currency. The Company’s exposure to the risk of changes in foreign
exchange rates relates primarily to the Company’s operating activities by way of direct imports or financing of imports through foreign currency instruments.
155
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
The Company proactively hedged its currency exposures in case of a significant movement in exchange rates for imports and in case the hedged cost of foreign
currency instrument is lower than the domestic cost of borrowing in case of short term import financing .
As at March 31, 2018, the Company hedged 2% (March 31, 2017: 58%) for 6 months , of its expected foreign currency payables.This foreign currency risk on
payables is hedged by using foreign currency forward contracts.
The Company does not have any investments in listed securities or in Equity Mutual Funds and thereby is not exposed to any Equity price risk.
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company
is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial
institutions, and other financial instruments.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with
this assessment. Outstanding customer receivables are regularly monitored by BPRMC and corrective actions taken.
Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy.
Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are
reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Company’s Finance
156
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make
payments.
The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31, 2017 is the carrying amounts as
illustrated in Note 12 except for financial guarantees. The Company’s maximum exposure relating to financial guarantees and financial derivative instruments is
noted in note 37 and the liquidity table below.
Liquidity risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and
buyers' credit facilities. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access
to a sufficient variety of sources of funding and debt.
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.
in Crores
On demand Less than 3
months 3 to 12 months 1 to 5 years > 5 years Total
Year ended March 31, 2018
Borrowings 143.27 - - - - 143.27
Financial Liabilities -
Other financial liabilities 5.54 68.55 37.84 3.54 - 115.47
Financial Gurantee 258.93 - - - - 258.93
Trade payables 1.51 931.06 - - - 932.57
409.25 999.61 37.84 3.54 - 1,450.24
Year ended March 31, 2017
Borrowings 34.58 85.10 - - - 119.68
Other financial liabilities 4.84 96.29 35.65 2.86 139.64
Financial Gurantee 253.18 - - - - 253.18
Trade payables 1.08 749.24 - - - 750.32
293.68 930.63 35.65 2.86 - 1,262.82
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the
equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.
The Company only avails short term borrowings to bridge its working capital gap and finances its capital expenditure through internal generation of funds.
157
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit
the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.
a. Details of Research & Development expenses incurred during the year, debited under various heads of Statement of Profit & Loss is given below
in Crores
March 31, 2018 March 31, 2017
14.55 13.00
b. Details of Capital expenditure incurred for Research & Development are given below
1.40 3.51
Above includes allowable expenditure under section 35(2AB) of the Income Tax Act
Capital expenditure 0.51 crores ( March 31, 2017 1.10 crores)
Revenue expenditure 9.54 crores ( March 31, 2017 8.72 crores)
The Company has a research & development unit situated in Howrah, Kolkata which focuses on reasearch on new and existing paint products, reformulation
The Company is engaged in the business of manufacturing and selling of paints. Based on the nature of products, production process , regulatory environment,
customers and distribution methods there are no reportable segment(s) other than "Paints".
158
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 42
All figures are in Rupees Crores. Figures marked with (*) are below the rounding off norm adopted by the Company.
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005
Kuldip Singh Dhingra, Chairman
Chartered Accountants
Gurbachan Singh Dhingra, Vice-Chairman
per Bhaswar Sarkar Abhijit Roy, Managing Director & CEO
Partner Srijit Dasgupta, Director-Finance & CFO
Membership Number : 055596
Aniruddha Sen, Sr. VP & Company Secretary
Place: Kolkata
Dated: May 30, 2018
159
FINANCIAL SUMMARY OF BERGER PAINTS INDIA LIMITED
(STANDALONE) – FIVE YEARS AT A GLANCE
` Crores
Shareholders’ Funds:
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160
FORM AOC-1
[Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014]
STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES
Part "A" : Subsidiaries
in Crores
Sl. Berger Beepee Saboo Berger Lusako Berger Paints Bolix S.A Build Bolix Soltherm Soltherm Surefire
No. Jenson & Coatings Coatings Paints Trading Overseas Trade BIS UKRAINA External Insulations Management
Name of subsidiary Nicholson Private Private (Cyprus) Limited Limited sp. z.o.o OOO Insulations Thermique Services
(Nepal) Limited Limited Limited Limited Exterieure Limited
Limited SAS
Private
1. Reporting Period 14/03/2018 31/03/2018 31/03/2018 31/12/2017 31/12/2017 31/12/2017 31/12/2017 31/12/2017 31/12/2017 31/12/2017 31/12/2017 31/12/2017
2. Reporting Currency Nepalese INR INR USD USD Russian Polish Polish Ukranian GBP EUR GBP
Rupees Ruble Zloty Zloty hryvnia
3. Exchange Rate as on
last date of relevant
Financial Year in case
of foreign subsidiaries 0.62 1.00 1.00 63.93 63.93 1.11 18.36 18.36 2.26 86.36 76.74 86.36
161
4. Share Capital 2.16 2.50 2.96 81.28 81.65 1.54 18.36 0.09 0.18 0.26 0.04 0.00
5. Reserves & surplus 132.29 9.94 18.84 (6.40) (71.97) (29.13) 182.82 0.02 (1.49) 0.27 0.05 -
6. Total assets 184.61 17.33 41.74 74.90 254.84 47.44 291.32 0.11 0.64 3.52 0.35 0.00
7. Total liabilities 50.16 4.89 19.94 0.02 245.16 75.03 90.14 0.00 1.95 2.99 0.26 -
8. Investments - 0.00 - - 252.70 - 1.06 0.01 - - - -
9. Turnover 170.82 24.44 71.51 - - 7.93 199.18 - 1.86 9.43 0.96 -
10. Profit before taxation 45.19 3.19 4.93 (3.78) (7.34) (4.16) 8.20 (0.01) (0.25) 0.30 0.05 -
11. Provision for taxation 9.25 0.80 1.74 - - - 2.02 - - 0.12 0.01 -
12. Profit after taxation 35.94 2.39 3.19 (3.78) (7.34) (4.16) 6.18 (0.01) (0.25) 0.18 0.04 -
13. Proposed Dividend Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
14. % of shareholding 100% 100% 100% 100% 100% 100% 100% 100% 99% 100% 100% 75%
Notes : The following information shall be furnished at the end of the statement :
1. Names of subsidiaries which are yet to commence operations - Not Applicable.
2. Names of subsidiaries which have been liquidated or sold during the year - Not Applicable.
Part "B": Associates and Joint Ventures
STATEMENT PURSUANT TO SECTION 129(3) OF THE COMPANIES ACT, 2013 RELATED TO ASSOCIATE COMPANIES AND JOINT VENTURES
in Crores
162
5. Net worth attributable to shareholding as per
latest audited Balance Sheet 50.28 97.98
Notes : The following information shall be furnished at the end of the statement :
1. Names of associates or joint ventures which are yet to commence operations -Not Applicable.
2. Names of associates or joint ventures which have been liquidated or sold during the year -Not Applicable.
For and on behalf of Board of Directors
Kuldip Singh Dhingra - Chairman
Gurbachan Singh Dhingra-Vice-Chairman
Place: Kolkata Abhijit Roy - Managing Director & CEO
Dated: May 30, 2018 Srijit Dasgupta -Director -Finance & CFO
Aniruddha Sen- Sr. Vice President & Company Secretary
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF BERGER PAINTS INDIA LIMITED
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Rules, 2015, as amended. The respective Board of Directors of the companies included in the Group and of its joint ventures are
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to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance
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statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement
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the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s
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evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in sub-paragraph
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Opinion
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Other Matter
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other auditors under generally accepted auditing standards applicable in their respective countries. The Company’s management
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in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments
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outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Company
and audited by us.
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report, to the extent applicable, that:
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ANNEXURE 1 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE
CONSOLIDATED FINANCIAL STATEMENTS OF BERGER PAINTS INDIA LIMITED
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criteria established by the Holding Company considering the essential components of internal control stated in the Guidance Note on Audit
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and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement,
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or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the
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statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or
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Opinion
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Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
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Other Matters
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subsidiary and joint venture incorporated in India.
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Partner
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167
CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 in Crores
Notes As at March 31, 2018 As at March 31, 2017
ASSETS
Non-current assets
Property plant and equipment 4 997.83 950.20
Capital work-in-progress 4 97.16 62.21
Goodwill 4 264.57 178.90
Other intangible assets 4 4.77 6.86
Investments in joint ventures 5 105.54 104.86
Financial assets
(a) Investments 5a 0.00 0.00
(b) Loans 5b 20.43 13.71
(c) Other financial assets 5c 2.53 3.99
Deferred tax assets (net) 13b 0.74 0.76
Income tax assets (net) 13c 46.53 14.76
Other non-current assets 6 35.07 36.28
1,575.17 1,372.53
Foreign currency monetary item translation
difference account 8.91 10.08
Current Assets
Inventories 7 1,007.34 935.47
Financial assets
(a) Investments 8a 227.59 367.27
(b) Trade receivables 8b 692.40 578.14
(c) Cash and cash equivalents 8c 83.59 45.25
(d) Bank balances other than (c) above 8d 121.38 57.20
(e) Loans 5b 1.96 11.33
(f) Other financial assets 5c 3.81 4.66
Other current assets 6 221.24 58.40
2,359.31 2,057.72
TOTAL ASSETS 3,943.39 3,440.33
EQUITY AND LIABILITIES
Equity
Equity Share Capital 9 97.10 97.10
Other equity 10 2,097.41 1,804.46
Total Equity 2,194.51 1,901.56
Liabilities
Non-Current Liabilities
Financial liabilities
(a) Borrowings 14a 249.47 262.08
(b) Other financial liabilities 11 7.27 5.59
Provisions 12 4.56 4.17
Deferred tax liabilities (net) 13a 83.20 81.45
Other non- current liabilities 15 1.72 1.24
Income tax Liabilities(net) 13d(1) - 4.75
346.22 359.28
Current Liabilities
Financial liabilities
(a) Borrowings 14a 172.70 144.13
(b) Trade payables 14b 955.25 761.20
(c) Other financial liabilities 11 144.70 154.62
Other current liabilities 15 93.88 89.82
Provisions 12 30.88 29.72
Current tax liabilities (net) 13d 5.25 -
1,402.66 1,179.49
Total Liabilities 1,748.88 1,538.77
TOTAL EQUITY AND LIABLITIES 3,943.39 3,440.33
Significant accounting policies 3
The accompanying notes are an integral part of the financial statements.
As per our report on even date
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005 Kuldip Singh Dhingra-Chairman
Chartered Accountants
Gurbachan Singh Dhingra-Vice-Chairman
per Bhaswar Sarkar Abhijit Roy-Managing Director & CEO
Partner Srijit Dasgupta-Director -Finance & CFO
Membership Number : 055596 Aniruddha Sen-Sr. VP & Company Secretary
Place: Kolkata
Dated: May 30, 2018
168
STATEMENT OF CONSOLIDATED PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Notes Year Ended Year Ended
March 31, 2018 March 31, 2017
Profit Before share of joint ventures, exceptional Items and tax 704.10 648.83
Share in profit of joint ventures 5 0.64 10.05
Profit Before exceptional Items and tax 704.74 658.88
Exceptional items 26 - 44.20
Profit before tax 704.74 703.08
Tax Expense/(credit)
Current tax 245.64 214.83
Deferred tax (1.73) 14.59
243.91 229.42
Profit for the year (I) 460.83 473.66
Other Comprehensive Income:
Other comprehensive income not to be reclassified to profit and loss in subsequent periods:
Re-measurement gains and (losses) on defined benefit obligations (net) 1.73 (2.42)
Income tax effect thereof (0.60) 0.75
Share of other comprehensive income in Joint Venture (net of tax) 0.05 (0.02)
Other comprehensive income not to be reclassified to profit and loss in subsequent periods:
Exchange differences on translation of foreign operations 33.26 (17.25)
Other comprehensive income/(loss) for the year, net of tax (II) 34.44 (18.94)
Total comprehensive income for the year, net of tax (I + II) 495.27 454.72
Earnings per Equity Share of 1 each 27
Basic 4.75 4.88
Diluted 4.74 4.88
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005
Kuldip Singh Dhingra- Chairman
Chartered Accountants
Gurbachan Singh Dhingra-Vice-Chairman
per Bhaswar Sarkar Abhijit Roy- Managing Director & CEO
Partner Srijit Dasgupta-Director-Finance & CFO
Membership Number : 055596 Aniruddha Sen-Sr. VP & Company Secretary
Place: Kolkata
Dated: May 30, 2018
169
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2018
Equity shares of Re 1 each issued, subscribed and fully paid No. of shares in Crores
Add: Issue of Shares on exercise of Stock Options (Note 31)* 44,781 0.00
*refer note 41
b. Other equity
As at April 1, 2017 111.31 0.87 1,420.40 0.19 302.87 0.04 (31.22) 1,804.46
170
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2018
As at April 1 , 2016 137.50 0.83 1,065.28 0.19 302.87 0.04 (13.97) 1,492.74
Total Comprehensive
Income for the year - - 471.97 - - - (17.25) 454.72
As at March 31, 2017 111.31 0.87 1,420.40 0.19 302.87 0.04 (31.22) 1,804.46
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005
Kuldip Singh Dhingra-Chairman
Chartered Accountants
Gurbachan Singh Dhingra-Vice - Chairman
Abhijit Roy-Managing Director & CEO
per Bhaswar Sarkar
Srijit Dasgupta-Director-Finance & CFO
Partner Aniruddha Sen-Sr. VP & Company Secretary
Membership Number : 055596
Place: Kolkata
Dated: May 30, 2018
171
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Particulars 2017-18 2016-17
For S.R. BATLIBOI & CO. LLP For and on behalf of Board of Directors
Firm Registration Number 301003E/E300005
Chartered Accountants Kuldip Singh Dhingra-Chairman
Gurbachan Singh Dhingra- Vice-Chairman
per Bhaswar Sarkar
Abhijit Roy-Managing Director & CEO
Partner
Srijit Dasgupta-Director -Finance & CFO
Membership Number : 055596
Aniruddha Sen-Sr. VP & Company Secretary
Place: Kolkata
Dated: May 30, 2018
172
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
1. Corporate Information
Berger Paints India Limited (‘BPIL’ or ‘the Holding Company’ or ‘the Company’) is a public limited company domiciled in India
and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on three stock exchanges
in India. The Holding Company is engaged in the manufacturing and selling of paints. The Company caters primarily to domestic
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174
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175
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CGU and then to other assets of the CGU pro-rata based on the carrying amount of each asset in the CGU. Any impairment
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in subsequent periods.
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,PSDLUPHQWRIQRQ¿QDQFLDODVVHWV
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exists, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-
generating unit’s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset,
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Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
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176
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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WKDWUHÀHFWVFXUUHQWPDUNHWDVVHVVPHQWVRIWKHWLPHYDOXHRIPRQH\DQGWKHULVNVVSHFL¿FWRWKHDVVHW,QGHWHUPLQLQJQHW
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appropriate valuation model is used.
3.10. Inventories
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constitutes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.
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DUHQRWZULWWHQGRZQEHORZFRVWLIWKH¿QLVKHGSURGXFWVLQZKLFKWKH\ZLOOEHLQFRUSRUDWHGDUHH[SHFWHGWREHVROGDUHDWRU
above cost.
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7UDGHGJRRGVDUHYDOXHGDWORZHURIFRVWDQGQHWUHDOL]DEOHYDOXH&RVWLQFOXGHVFRVWRISXUFKDVHDQGRWKHUFRVWVLQFXUUHGLQ
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Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
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on behalf of the government. The Group has concluded that it is principal in all of its revenue arrangements since it is the
primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.
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GXW\ÀRZVWRWKH*URXSRQLWVRZQDFFRXQWDQGDFFRUGLQJO\UHYHQXHLQFOXGHVH[FLVHGXW\5HIHUQRWHWRWKH¿QDQFLDO
statements.
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Sale of goods
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the buyer, on delivery of the goods or as per buyer’s instruction. Revenue from the sale of goods is measured at the fair value
RIWKHFRQVLGHUDWLRQUHFHLYHGRUUHFHLYDEOHQHWRIUHWXUQVDQGDOORZDQFHVWUDGHGLVFRXQWVDQGYROXPHUHEDWHV
177
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the applicable
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Dividend Income
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EHQH¿WVDVVRFLDWHGZLWKWKHGLYLGHQGZLOOÀRZWRWKH*URXSDQGWKHDPRXQWRIWKHGLYLGHQGFDQEHPHDVXUHGUHOLDEO\
*RYHUQPHQW*UDQWV6XEVLGLHVDQG([SRUW%HQH¿WV
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When the grant or subsidy from the Government relates to revenue, it is deducted from the related expense on a systematic
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intended to compensate.Where the grant or subsidy from the Government relates to revenue and is not relatable to the
corresponding costs, it has been disclosed as other operating income. When the grants relates to an asset, it is recognised as
income in equal amounts over the expected useful life of the related asset.
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and
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The loan or assistance is initially recognised and measured at fair value of the proceeds received. The loan is subsequently
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a. Superannuation
Contribution made to Superannuation Fund for certain employees of the Holding Company are recognised in
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QROLDELOLW\IRUIXWXUH6XSHUDQQXDWLRQ)XQGEHQH¿WVRWKHUWKDQLWVFRQWULEXWLRQ
b. Provident Fund
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Employees Provident Fund Trust and in respect of other employees of the Group, are made to the Fund
administered by the Regional Provident Fund Commissioner as per the provisions of Employees’ Provident
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services are rendered by employees. The Group has no obligation other than the contribution payable to the
Regional Provident fund.
178
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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a. Gratuity
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of The Payment of Gratuity Act, 1972. Retirement Gratuity for employees of the Holding Company, is funded
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are determined on the basis of actuarial valuation using the projected unit credit method at each year-end.
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LQ WKH SHULRG LQ ZKLFK WKH\ RFFXU 5HPHDVXUHPHQWV DUH QRW UHFODVVL¿HG WR SUR¿W DQG ORVV LQ VXEVHTXHQW
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value of available refunds and reduction in future contributions.
b. Provident Fund
In respect of the employees covered by the Holding Company’s Employee Provident Fund Trust in Point
I b above, contributions to the Holding Company’s Employees Provident Fund Trust (administered by the
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In the case of contribution to the Trust, the Holding Company has an obligation to make good the shortfall,
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obligation, if any, determined based on an actuarial valuation as at the balance sheet date, as an expense.
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measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation
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extent it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where
the Group has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months,
the same is presented as non-current liability.
3.14. Leases
As a lessee
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179
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
Finance leases are capitalised at the commencement of the lease at the inception date at the fair value of the leased property
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and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.
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the asset and the lease term.
As a lessor
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as operating leases. Rental income from operating lease is recognised on a straight line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the
leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as
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or substantially improved materials, devices, products, processes, systems or services before the start of commercial
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(b) the Company intends to complete the intangible asset and use or sell it.
(c) the Company has ability to use or sell the intangible asset.
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intangible asset.
180
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
(f) the Company has ability to measure reliably the expenditure attributable to the intangible asset during its development.
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for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the
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Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that
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Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become
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asset and settle the liability simultaneously.
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comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
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during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates
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181
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The Group records a provision for decommissioning costs for its certain manufacturing facilities. Decommissioning costs
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appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost
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application is required for annual periods beginning on or after 1 April 2018.
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may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance
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the recovery of some assets for more than their carrying amount.
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in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another
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of equity. Entities applying this relief must disclose that fact.
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income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration,
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arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine
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for the purposes of approving the annual operating plan is on a consolidated basis for various products of the Company. As
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of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the
business combination and the control is not transitory. Business combinations involving entities under common control are
accounted for using the pooling of interests method. The assets and liabilities of the acquired entity are recognised at their
carrying amounts on the date of the acquisition subject to necessary adjustments required to harmonise accounting policies.
187
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2018
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or shortfall of the consideration paid over the share capital of acquired entity is recognized as capital reserve under equity.
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Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules,
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L 7KH¿QDQFLDOVWDWHPHQWVRIWKH+ROGLQJ&RPSDQ\DQGLWVVXEVLGLDULHVKDYHEHHQFRPELQHGRQDOLQHE\OLQHEDVLVE\DGGLQJ
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events in similar circumstances and are presented to the extent required and possible, in the same manner as the Holding
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iii. The translation of the functional currencies into Indian Rupees (functional and presentation currency) of foreign subsidiaries
is performed for assets and liabilities using closing exchange rates at the Balance Sheet date, for revenues, costs, and
expenses using average rates prevailing during the period. The resultant exchange difference arising out of such transactions
LVUHFRJQL]HGDVSDUWRI2WKHU&RPSUHKHQVLYH,QFRPHDV)RUHLJQ&XUUHQF\7UDQVODWLRQ5HVHUYHE\WKH+ROGLQJ&RPSDQ\
until the disposal of Investment.
iv. The excess of cost to the Holding Company of its investment in the subsidiaries over the Holding’s portion of equity of the
VXEVLGLDULHVDWWKHGDWHVWKH\EHFDPHVXEVLGLDULHVLVUHFRJQL]HGLQWKH¿QDQFLDOVWDWHPHQWVDV*RRGZLOO
Y -RLQW9HQWXUHVDUHHQWLWLHVRYHUZKLFKWKH*URXSKDVMRLQWFRQWURODORQJZLWKWKLUGSDUWLHV,QYHVWPHQWVLQ-RLQW9HQWXUHVDUH
accounted for using the equity method of accounting. The investment is initially recognised at cost, and the carrying amount
LVLQFUHDVHGRUGHFUHDVHGWRUHFRJQLVHWKHLQYHVWRU¶VVKDUHRISUR¿WRUORVVRIWKHLQYHVWHHDIWHUWKHDFTXLVLWLRQGDWH
188
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 4(a) - Property, plant and equipment in Crores
Particulars Gross Block at Cost Depreciation / Amortisation Net Block
On
As at Additions Deletions Translation As at As at Acquisition** For Deletions Translation As at As at As at
April 1 , Difference March 31, April 1, the Year (Accumu Difference March 31, March 31, March 31,
2017 2018 2017 lated upto 2018 2018 2017
the date of
sale)
Land
Freehold 12.57 0.46 - 0.32 13.35 - - - - - 13.35 12.57
Leasehold 8.54 0.45 - - 8.99 0.19 0.22 - - 0.41 8.58 8.35
Buildings
Freehold # 378.18 17.03 (0.34) 2.89 397.76 23.89 16.36 - 1.94 42.19 355.57 354.29
Leasehold 27.22 0.87 - - 28.09 2.11 0.02 1.05 - - 3.18 24.91 25.11
Plant &
Machinery ## 607.17 118.60 (3.03) 6.32 729.06 122.68 0.38 81.44 (2.05) 5.00 207.45 521.61 484.49
Furniture and
Fixtures 26.48 9.97 (0.90) 1.36 36.91 7.15 0.07 5.69 (0.88) 1.16 13.19 23.72 19.33
Computer ## 36.43 10.91 (0.14) - 47.20 10.19 0.06 9.37 (0.13) - 19.49 27.71 26.24
Office
Equipment 8.89 2.32 (0.07) - 11.14 2.53 0.01 1.97 (0.01) - 4.50 6.64 6.36
Vehicles 13.99 8.19 (4.63) 1.24 18.79 0.53 0.15 4.35 (2.77) 0.79 3.05 15.74 13.46
TOTAL 1,119.47 168.80 (9.11) 12.13 1,291.29 169.27 0.69 120.45 (5.84) 8.89 293.46 997.83 950.20
Brushwork
Leasehold land at Taloja, Maharashtra 1 1.13 1.13 0.98 1.00 Paints Limited
Berger Auto & Indutsrial
Freehold land at Rishra, West Bengal 1 1.36 1.36 1.36 1.36 Coatings Limited
Leasehold land at Sikandrabad, Uttar Pradesh Rajdoot Paints Private
1 0.27 0.27 0.15 0.15 Limited
Leasehold land at Chandigarh 1 0.05 0.05 0.03 0.03 Rajdoot Paints Private
Limited
189
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
* Includes Goodwill on consolidation 65.24 crores (2016-17 1.06 crores). Goodwill of 64.18 crores is on account of acquisition of Saboo Coatings Private
Limited during the year.
TOTAL 11.96 1.73 (0.29) 2.21 15.61 5.10 0.07 3.76 (0.27) 2.18 10.84 4.77 6.86
** Indicates accumulated depreciation on assets acquired from Saboo Coating Private Limited during the year as at the June 5, 2018
190
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
## (i) Includes following assets ( color bank ) given under operating lease in Crores
Particulars Gross Block at Cost Depreciation / Amortisation Net Block
Plant & Equipment 172.85 46.09 - - 218.94 67.28 - 40.10 - - 107.38 111.56 105.57
Computer 19.20 6.46 (1.04) - 24.62 7.79 - 5.31 (0.69) - 12.41 12.21 11.41
Total 192.05 52.55 (1.04) - 243.56 75.07 - 45.41 (0.69) - 119.79 123.77 116.98
(ii) Also refer note 32
As at Additions Capitalisation As at
April 1, March 31,
2017 2018
Buildings
Freehold # 300.57 78.46 (1.36) 0.51 378.18 11.08 13.16 - (0.35) 23.89 354.29 289.49
Particulars
Leasehold 23.97 Gross
3.25 Block at- Cost - 27.22 1.08 Depreciation
1.03 / Amortisation
- - 2.11 Net Block
25.11 22.89
TOTAL 847.84 290.15 (17.65) (0.87) 1,119.47 81.36 103.08 (12.55) (2.62) 169.27 950.20 766.48
191
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Computer Software 14.06 1.94 (3.28) (0.76) 11.96 4.08 4.97 (3.19) (0.76) 5.10 6.86 9.98
TOTAL 14.06 1.94 (3.28) (0.76) 11.96 4.08 4.97 (3.19) (0.76) 5.10 6.86 9.98
## (i) Includes following assets ( color bank ) given under operating lease
in Crores
Particulars Gross Block at Cost Depreciation / Amortisation Net Block
Plant & Equipment 125.95 48.41 (1.51) - 172.85 31.82 36.43 (0.97) - 67.28 105.57 94.13
Computer 14.51 4.69 - - 19.20 3.75 4.04 - - 7.79 11.41 10.76
Total 140.46 53.10 (1.51) - 192.05 35.57 40.47 (0.97) - 75.07 116.98 104.89
192
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at Additions Capitalisation As at
April 1, 2016 March 31, 2017
The Group has a 48.98% and 49% interest in Berger Becker Coatings Private Limited and Berger Nippon Paint Automotive Coatings Private Limited respec-
tively (Company's Joint Venture with , which are involved in the manufacture and selling of paints). These joint ventures are private limited companies that
are not listed on any public exchange. The Group’s interest in joint ventures are accounted for using the equity method in the consolidated financial
statements. Both the joint ventures are individually immaterial to the reporting entity. Summarised financial information of the joint venture, based on its Ind
AS financial statements are set out below in Crores
As at As at
March 31, 2018 March 31, 2017
Carrying amount of interest in joint ventures 105.54 104.86
in Crores
Consolidated notes to financial statements for the year ended March 31, 2018
Note 5a. Financial assets - Investments
in Crores
Number of shares in crores
Nominal Value per unit Currency As at March 31, 2018 As at March 31, 2017 As at March 31, 2018 As at March 31, 2017
Investments at fair value through profit and loss (fully paid) reflect investment in unquoted equity securities. Refer note 36 for determination of their fair value.
* Refer Note 41
Non-Current Current
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Security Deposits 20.42 13.71 1.96 8.22
Other Loans 0.01 - - 3.11
Total loans and deposits 20.43 13.71 1.96 11.33
Non-Current Current
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Bank Deposits with original maturity more than twelve months 0.09 0.11 0.07 0.05
Security Deposits - - 0.02 0.97
Advances to related parties - towards Share Application money
pending allotment ## 2.44 2.45 - -
Interest accrued on deposits - - 1.77 0.66
Other receivables* 0.00 1.43 1.95 2.98
Total Other financial assets 2.53 3.99 3.81 4.66
##
Berger Paints (Cyprus) Limited 2.44 2.13
194
Consolidated notes to financial statements for the year ended March 31, 2018
Note 6. Other Assets
(Unsecured, considered good unless otherwise stated) in Crores
Non-Current Current
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Capital advances 16.50 10.13 0.28 -
Advances other than capital advances
# Excise duty disclosed in Statement of Profit and Loss for the three months period ended June 30, 2017 is net off excise duty benefit of 8.16 crores (Year ended
March 31, 2017: 27.65 crores). Subsequent to the implementation of GST w.e.f July 1, 2017, the Company has claimed subsidy available under "Scheme of
Budgetary Support under GST Regime to the eligible units" located in specified States amounting to 28.38 crores (March 31, 2017: Nil).
Note 7. Inventories
(at the lower of cost and net realisable value)
in Crores
As at As at
March 31, 2018 March 31, 2017
Raw materials [ Including in-transit 56 crores (March 31, 2017 - 58 crores)] 304.34 247.01
Packing material (Containers)[ Including in-transit 0.09 crores (March 31, 2017 - Nil)] 23.30 18.45
Traded goods [ Including in-transit 2 crores (March 31, 2017 - 2 crores)] 76.87 67.45
195
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 8a. Financial assets - Current Investments
Nominal Value As at As at As at As at
per unit March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Investments at Fair Value
Through Profit and Loss
(FVTPL):
196
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Non-Current Current
As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
* Includes debts due from private limited cmpanies in which directors of the
Company are directors
Berger Becker Coatings Private Limited 1.52 0.20
Berger Nippon Paint Automotive Coatings Private Ltd. (Formerly
BNB Coatings India Private Limited/BNB Coatings India Limited ) 5.40 1.89
Wazir Estates Private Limited # - 0.02
Trade receivables are non-interest bearing and generally has credit period from 30 to 90 days
For terms and conditions relating to related party receivables, refer Note 34
# Refer Note 41
197
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 8c. Financial Assets-Cash and Cash Equivalents
in Crores
As at As at
March 31, 2018 March 31, 2017
# Deposits at Banks earn interest between 7.50 % to 11% and are made for periods between 61 and 275 days
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following in Crores
As at As at
March 31, 2018 March 31, 2017
Balances with banks:
– On current accounts 23.47 30.62
– Deposits with original maturity of less than three months 48.99 0.15
Cheques/drafts on hand 10.30 13.79
Cash on hand 0.83 0.69
Total Cash and Cash Equivalents 83.59 45.25
Less- Bank Overdraft (Refer Note 14a) (3.02) (5.19)
80.57 40.07
Issued Capital
97,11,22,908 Equity Shares of 1 each fully paid up (March 31, 2017: 971,078,127 Equity Shares of 1 each fully paid up) 97.11 97.11
97.11 97.11
Subscribed and Paid-up Capital
97,10,31,428 Equity Shares of 1 each fully paid up (March 31, 2017: 970,986,647 Equity Shares of 1 each fully paid up) 97.10 97.10
97.10 97.10
# In accordance with the Scheme of Amalgamation referred in note 34 (c), the authorized share capital of BJN India has merged into and combined with the
Authorised Share capital of the Company.
198
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
* Refer note 41
b) Terms/Rights attached to class of shares
The Holding Company has only one class of Equity Shares having a par value of 1 each. Holder of each Equity Share is entitled to one vote per share. The
Holding Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the sharehold-
ers in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Holding Company, the holders of equity shares
will be entitled to receive remaining assets of the Holding Company, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.
c) Equity Shares held by the Holding Company and/or the subsidiaries/associates of Holding Company
As at As at
March 31, 2018 March 31, 2017
d) Details of Shareholders holding more than 5 percent of Equity Shares in the Holding Company
U K Paints (India) Private Limited (Ultimate Holding Company) 48,65,45,399 50.11% 48,65,45,399 50.11%
As per records of the Holding Company, including its register of shareholders/members and other declarations received from shareholders regarding
beneficial interest, the above shareholding represents both legal and beneficial ownership of shares as declared under the relevant provisions of the Compa-
nies Act , 2013
For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Holding Company, refer Note 31.
199
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
f) Fully paid up equity shares allotted by way of bonus shares
27,73,91,165 bonus shares were issued and allotted during the year by the Company to the eligible members of the Company holding ordinary shares of
1 each (ratio 2:5) by capitalizing 27.74 Crores out of the sum standing to the credit of Company’s Securities Premium Account.
in Crores
As at As at
March 31, 2018 March 31, 2017
Reserves & Surplus
Securities Premium Account (refer Note 31) 112.34 111.31
Retained earnings 1,677.73 1,420.40
General Reserve 302.87 302.87
Other reserves
Share based payment reserve 2.20 0.87
Capital reserve 0.19 0.19
Capital redemption reserve 0.04 0.04
Items of OCI
Foreign Currency Translation Reserve 2.04 (31.22)
Total other equity 2,097.41 1,804.46
Notes:
Securities Premium Account - Premium received on equity shares issued including those under employee stock option plan are recognised in the securities
premium account net of utilization for bonus shares issued etc.
Retained Earnings - Retained earnings includes surplus in the Statement of Profit and Loss, Ind-AS related adjustments as on the date of transition,
remeasurement gains/ losses on defined benefit plans and Revaluation reserve aggregating to Nil (March 31, 2017: 0.83 crores ) created on revaluation
of Leasehold Land, Freehold Land and Freehold Buildings of the Holding Company in 1989, 1985 and 1993 done by approved valuers. The aforementioned
revaluation reserve is not a free reserve as per the Companies Act, 2013 and hence is not available for distribution as dividend.
General Reserve - Under the erstwhile Indian Companies Act 1956, a general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations, to ensure that if a dividend distribution in a given year is more than 10% of the paid capital of the compa-
ny for that year, the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the
requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.
Share based payment reserve - The Company has two employee stock option plan (ESOP) under which options to subscribe for the Company’s shares have
been granted to specific employees. The Share based payment reserve is used to recognise the value of equity-settled share-based payments to employees as
part of their remuneration. The year end balance is net off options exercised by the concerned employees. Refer to Note 32 for further details of these plans.
Capital redemption reserve - Represents the amount equal to the face value of equity shares transferred at the time of buy-back of shares.
Foreign Currency Translation Reserve- Represents exchange difference on translation of financial statements of foreign subsidiaries .
200
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at As at As at As at
Particulars March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
in Crores
Non-Current Current
Particulars As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Provision for housing fund cost has been recognised in compliance with Sec 41 of Nepal Labour Act, 2048
201
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Non-Current Current
Particulars As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Nature - (Liability) / Asset March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
202
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
During the year ended 31 March, 2018 and 31 March, 2017, the Holding Company has paid dividend to its shareholders. This has resulted in payment of
Dividend Distribution Tax (DDT) to the taxation authorities. The Holding Company believes that DDT represents additional payment to taxation
authority on behalf of the shareholders.
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 13(e) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for March 31, 2018 and March 31, 2017:
The tax on the Company's profit before tax differs from the theoretical amount that would arise using the standard rate of corporate tax in India (34.608%)
as follows:
in Crores
Income tax expense reported in the Statement of Profit and Loss 243.91 229.42
Income tax expense reported in Other Comprehensive Income 0.60 (0.75)
244.51 228.67
The Subsidiaries have unused tax losses which arose on incurrence of business losses and unabsorbed depreciation under the respective tax loss for which
no deferred tax asset has been recognised in the Balance Sheet. Refer table below:
in Crores
Financial Year Particulars March 31, 2018 Expiry Date March 31, 2017 Expiry Date
At the end of the reporting period, the aggregate amount of temporary differences associated with undistributed earnings of the subsidiaries for which deferred
tax liabilities have not been recognised is 161.07 crores (2016-17: 110.51 crores). No liability has been recognised in respect of these differences because
management controls the distributions of the earnings of the subsidiaries to the holding company and it has no intention to distribute the earnings of the subsid-
iaries.
204
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Particulars As at As at As at As at
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Secured
Term Loan
From Banks (secured) 244.20 259.59 - -
Loans repayable on demand
From Banks
Bank Overdraft - - 3.02 5.19
Cash credit - - 140.71 30.51
Buyers' Credit (in foreign currency) - - - 84.29
Long term maturity of finance lease obligations 5.27 2.49 - -
Other Loans - - 28.97 24.14
249.47 262.08 172.70 144.13
Term Loan from banks are secured by a charge by way of mortgage on some specific fixed assets
Term loan of 132.33 crores (2016-17: 140.67crores) is repayable by June 7, 2019 and carries interest of 3 month LIBOR +140 Basis points. Term
loan of 111.87 crores (2016-17: 118.92 crores) is repayable by April 14, 2019 and carries interest of 6 month LIBOR+ 140 Basis points
Bank overdraft are repayable on demand and carry interest rate of MIBOR+ 130 bps (March 31, 2017: MIBOR+ 130 bps)
Cash Credits from banks are secured by way of first charge on book debts and current assets ranking pari passu between the lenders (first pari passu
charge over entire current assets). Cash Credit is repayable on demand and carries interest at 7.3 % - 11.75% per annum (March 31, 2017: 8%-10% per
annum)
The buyers' credit is repayable in six months and carries interest at Nil (March 31, 2017: LIBOR +0.25%) and is secured by hypothecation of stocks
and book debts, both present and future.
Amendments to Ind AS 7 Statement of Cash Flows:
The amendments to Ind AS 7 require entities to provide disclosure of changes in their liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). The Company has provided the information for both
the current and the comparative period as under
in Crores
Particulars April 1, 2017 Cash flows Exchange March 31,
difference 2018
Non Current Borrowings
Term Loan 259.59 - (15.39) 244.20
205
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
206
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
As at As at
March 31, 2018 March 31, 2017
Acceptances 137.08 111.93
Other than Acceptances
- Total outstanding dues of Micro, Small & Medium Enterprises (See note below) 17.84 11.25
- Total outstanding dues of creditors other than Micro, Small & Medium Enterprises 800.33 638.02
955.25 761.20
As at As at
March 31, 2018 March 31, 2017
Disclosure under the Micro, Small and Medium enterprises Development Act,
2006 are provided as under to the extent the Company has received intimation
from the suppliers regarding their status under the Act.
Principal amount remaining unpaid at the end of the year 16.33 10.17
Interest due thereon remaining unpaid at the end of the year 1.51 1.08
17.84 11.25
Delayed payment of Principal amount paid beyond appointed date during the entire
financial year 27.00 16.48
Interest actually paid under Section 16 of the Act during the entire accounting year - -
Amount of Interest due and payable for the period of delay in making the payment
(which have been paid but beyond the appointed day during the year) but without
adding interest specified under this Act. 0.33 -
Amount of Interest due and payable for the period (where principal has been paid but interest
under the MSMED Act not paid) 0.06 0.17
Interest accrued and remaining unpaid at the end of the year 0.43 0.18
The amount of further interest remaining due and payable even in succeeding years,
until such date when the interest dues as above are actually paid to the Micro and
Small Enterprises for the purpose of disallowances as deductible expenditure under
Section 23 of this Act 1.51 1.08
207
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
At Amortised Cost
(a) Loans and Deposits 20.43 13.71
(b)Other Financial Assets 2.53 3.99
22.96 17.70
At Amortised Cost
(a) Loans and Deposits 1.96 11.33
(b) Cash and Cash Equivalents 83.59 45.25
(c) Bank balances other than (b) above 121.38 57.20
(b) Trade receivables 692.40 578.14
(e) Other financial assets 3.81 4.66
208
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 16b. Financial Liabilities
in Crores
As at As at
March 31, 2018 March 31, 2017
Financial Liabilities - Non Current
At Amortised Cost
(a) Borrowings 249.47 262.08
(b) Other Financial Liabilities 7.27 5.59
At Amortised Cost
(a) Borrowings 172.70 144.13
(b) Trade Payables 955.25 761.20
(c) Other financial liabilities
Interest accrued but not due on borrowings 0.89 0.91
Unpaid Dividends (to be credited to Investor Education and Protection Fund as and when due) 5.54 4.84
Others
Deposits 37.85 37.31
Capital Creditors 33.51 50.06
Accrued Employee Liabilities 46.52 35.07
Other Payables 20.39 22.32
204.52 116.85
Proposed dividends on equity shares:
Final dividend for March 31, 2018- 1.80 per share (March 31, 2017 - 1.75 per share) 174.78 169.93
DDT on proposed dividend 35.93 34.59
210.71 204.52
As at March 31 2018, proposed dividend on equity shares are subject to approval in the ensuing Annual General Meeting. Pending such approval
proposed dividend and dividend distribution tax thereon have not been recognised in these financial statements
209
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
March 31, 2018 March 31, 2017
Raw Materials Consumed
Opening Stocks 247.01 191.30
Add: Purchases 2,356.17 1,998.03
Less: Closing stock (304.34) (247.01)
2,298.84 1,942.32
Packing Material Consumed
Opening Stocks 18.45 12.92
Add: Purchases 384.15 346.81
Less: Closing stock (23.30) (18.45)
379.30 341.28
210
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 21. (Increase)/Decrease in inventories of finished goods, work-in-process and stock - in - trade
in Crores
March 31, 2018 March 31, 2017
Opening Stock
Work-in-Process 58.42 49.58
Finished Goods 531.95 407.42
Traded goods 67.45 62.89
657.82 519.89
Closing Stock
Work-in-Process 68.54 58.42
Finished Goods 517.78 531.95
Traded goods 76.87 67.45
663.19 657.82
Others - (3.00)
(Increase)/Decrease in Excise Duty on Stock of Finished Goods (94.60)* 15.84
(Increase)/decrease in inventories of finished goods, work-in-process and traded goods (99.97) (125.09)
* Includes reversal of excise duty on Inventory as at March 31, 2017. Due to implementation of GST in the current year, there is no excise duty element on
the inventory as at March 31, 2018
211
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
# Bad debts written off 8.43 crores ( 31 March 2017 8.21 crores)
Corporate Social Responsibility expensed 10.43 Crores (2016-17: 8.18 Crores) includes Company’s own programme for promoting employment
enhancing vocational skill named 'iTrain'
212
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
During the previous year In the consolidated statement, as per the IND AS, the realized gain on slump sale to Berger Nippon Paint Automotive Coatings
Private Limited (previously known as BNB Coatings India Private Limited) , an existing Joint Venture between Berger Paints India Limited and Nippon Paints
Automotive Coatings Co. Limited , Japan to the extent of 51% being borne by a third party investor has been recognised under the equity method in the share
of the consolidated profit for the quarter, with a corresponding reduction of 49 % in the carrying amount of the investment in the consolidated balance sheet
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Holding Company by the weighted average number
of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Holding Company by the weighted average number of equity
shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity
shares into equity shares.
The following reflects the income and share data used in the basic and diluted EPS computations:
Net Profit after tax for calculation of Basic and Diluted Earnings Per Share ( in crores) (I) 460.83 473.67
Weighted average number of shares (II)
- Basic 97,10,00,633 97,09,18,392
- Diluted (refer note below) 97,12,47,574 97,10,59,627
Effect of dilution:
Weighted average number of equity shares in calculating Basic Earnings Per Share 97,10,00,633 97,09,18,392
Dilution - Stock options granted under ESOP 246,941 141,235
Weighted average number of equity shares in calculating diluted EPS 97,12,47,574 97,10,59,627
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 28. Significant accounting judgements, estimates and assumptions
The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and
estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, howev-
er, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when
they occur. In the process of applying the Group’s accounting policies, management has made the following judgements, estimates and assumptions, which
have the most significant effect on the amounts recognised in the Financial Statements.
The cost and the present value of the defined benefit gratuity plan and other post-employment leave encashment benefit are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These include the determination
of appropriate discount rate, estimating future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. For further details refer
Note 30.
When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets,
their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 36
for further disclosures.
Property, plant and equipment represent a significant proportion of the asset base of the Group. The charge in respect of periodic depreciation is derived after
determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of group's
assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on
historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
Decommissioning Liability
Decommissioning Liability has been recognised for items of property plant and equipment built or installed on specified leasehold land the terms of which
said leases include decommissioning of such assets on expiry of the lease prior to handing over to the lessor. The decommissioning costs as at the end of the
lease period have been estimated based on current costs by the Holding Company's own technical experts and have been escalated to the end of the leasehold
period using suitable inflation factors. The said esclated cost as at the end of the lease period is now discounted to the present value of such liability by
applying holding company's weighted average cost of capital.
214
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 29. Information related to subsidiaries and joint ventures
The subsidiaries considered in the consolidated financial statements are as follows:
Bolix S.A. (100% Subsidiary of Lusako Trading Limited) Poland 100% 100% 1st January - 31st
December
Build-Trade BIS sp. z.o.o. (100% Subsidiary of Bolix S.A.) Poland 100% 100% 1st January - 31st
December
Bolix UKRAINA OOO (99% Subsidiary of Bolix S.A.) Ukraine 99% 99% 1st January - 31st
December
Soltherm External Insulations Limited (100% Subsidiary of United Kingdom 100% 100% 1st January - 31st
Bolix S.A.) December
Soltherm Insolations Thermique Exterieure SAS (100% France 100% 100% 1st January - 31st
Subsidiary of Bolix S.A.) December
Surefire Management Services Ltd (“SMS”). United Kingdom 75% NA 1st January - 31st
December
Joint Ventures
Berger Becker Coatings Private Limited India 48.98% 48.98% 1st April - 31st
March
Berger Nippon Paint Automotive Coatings Private Limited India 49.00% 49.00% 1st April - 31st
(Formerly known as BNB Coatings Private Limited) March
There are no material transactions/events that have occurred between December 31/March 14 and March 31 which might have a material impact on the
profitability or financial position on these consolidated financial statements.
215
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 30. Gratuity and other post employment benefit plans
(I) Defined benefit plans
(a) Gratuity
(i)The following table summarizes the components of net defined benefit expense toward gratuity recognised in the Statement of Profit and loss and OCI
and the funded status and amounts recognised in the Balance Sheet.
in Crores
Particulars March 31, 2018 March 31, 2017
in Crores
Particulars 2017 - 2018 2016 - 2017
Expense recognised in the statement of profit and loss:
Current service cost 6.28 1.82
Net interest cost/(income) (1.10) 0.00
Net cost recognised in the statement of profit and loss 5.18 1.82
216
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as
supply and demand in the employment market
Assumptions regarding future mortality experience are set in accordance with the published statistics by the Life Insurance Corporation of India
The discount rate is based on the government securities yield
The Group assesses these assumptions with its projected long-term plans of growth and prevalent industry standards.
(iii) Major category of Plan Assets of the fair value of the total plan assets are as follows:-
(iv) A quantitative sensitivity analysis for significant assumptions are as shown below
in Crores
March 31, 2018 March 31, 2017
Assumptions Discount rate Discount rate
Sensitivity Level 1% increase 1% decrease 1% increase 1% decrease
Impact on defined benefit obligation (4.20) 4.92 (3.05) 3.58
Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by
one percentage, keeping all other actuarial assumptions constant. The methods and types of assumptions used in preparing the sensitivity analysis did not
change compared to the prior period.
217
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
(vii) Maturity profile of the defined benefit obligation
in Crores
March 31, 2018 March 31, 2017
Weighted Average duration of the defined benefit obligation 9-12 Years 9-12 Years
Within the next 12 months (next annual reporting period) 1.04 0.95
Between 2 and 5 years 13.16 10.59
Between 5 and 10 years 21.67 15.44
in Crores
218
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
The Berger Paints India Limited – Employee Stock Option Plan 2016 [‘the Plan’] was approved at the Annual General Meeting of the Company held on 3rd
August, 2016. The objective of the plan is to:
1) Attract, retain and motivate Employees,
2) Create and share wealth with the Employees,
3) Recognise and reward employee performance with shares and
4) Encourage employees to align individual performance with the objective of the Company. The terms and conditions of the Plan is reproduced below:
a) “Vesting Date” means the date on and from which the Option vests with the Participant and thereby becomes exercisable.
b) “Exercise Date” means the date on which the Participant exercises his Vested Options and in case of partial exercise shall mean each date on which the
Participant exercises part of his Vested Options.
c) “Vesting Period” means the period during which the Vesting of the Option granted to the Participant in pursuance of the Plan takes place.
d) “Exercise Period” means a period of 3 years from the Vesting Date as defined above of the Plan within which the Vested Options can be exercised in
pursuance of the Plan.
e) The Exercise Price of an Option shall be the face value of 1/- per Share
f) Cashless exercise of the Options are not permitted under the Plan. Participants to pay full Aggregate Exercise Price upon the Exercise of the
Vested Options.
g) Subject to Participant’s continued employment as defined in Clause 14 of the Plan the Unvested Options shall vest with the Participant automatically in
accordance with the following schedule : i) 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the first anniversary of
the Grant Date; ii) further 33% of the total Options granted, rounded up to the nearest whole number, shall vest on the second anniversary of the Grant Date
and iii) balance 34% of the total Options granted, rounded up to the whole number such that the total number of Options vested shall add up to 100%, shall vest
219
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
on the third anniversary of the Grant Date.
h) The Date of grant of options : 9th November, 2016.
As at As at
March 31, 2018 March 31, 2017
220
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
g. Variation of terms of Option None during the period None during the period
h. Total Number of Options in force (ESOP Plan 2010: Grant I) Nil Nil
Total Number of Options in force (ESOP Plan 2010: Grant II) Nil Nil
Total Number of Options in force (ESOP Plan 2010: Grant III) 1,390 1,390
Total Number of Options in force (ESOP Plan 2010: Grant IV) 1,172 1,172
Total Number of Options in force (Additional grant Options vested in lieu of bonus
issues from ESOP Plan 2010 balances on 21.11.2016) 1,025 1,025
Total Number of Options in force (ESOP Plan 2016: Grant I) 88,022 1,38,270
Total Number of Options in force (ESOP Plan 2016: Grant II) 1,56,384 -
2,47,993 1,41,857
i. Weighted Average exercise price of the Share Options
Outstanding at the beginning of the year 1 1
Granted during the year 1 1
Forfeited during the year - -
Exercised during the year 1 1
Expired during the year 1 1
Outstanding at the end of the year 1 1
Exercisable at the end of the period 1 1
j. Weighted Average share price of options exercised during the year on the date of
exercise 1 1
k. Weighted Average fair value of the Options granted during the year
i. ESOP Plan 2016 Grant I (Fair value as on 31.03.2018) NA 236.35
ii. ESOP Plan 2016 Grant II (Fair value as on 31.03.2018) 250.74 NA
iii. Additional grant in lieu of bonus issues from ESOP Plan 2010 balances of Grant III
and IV (Fair value as on 31.03.2017) NA 238.99
l. A description of the method and significant assumptions used during the year to estimate the fair value of Options granted, including the
following weighted average information:-
The Black Scholes Option Pricing Model for dividend paying stock has been used to compute the fair value of the Options. The significant
assumptions are:
i. Date of grant
a. ESOP Plan 2016 09.11.2016 09.11.2016
b. Additional grant in lieu of bonus issues from ESOP Plan 2010 balances 21.11.2016 21.11.2016
ii. Weighted average share price 256.70 242.10
iii. Exercise Price 1 1
iv. Risk Free Interest rate 7.40% 6.69%
v. Expected Life:
a. For options vested on 01.08.2015 0.33 years 1.33 years
b. For options vested on 01.08.2016 1.33 years 2.33 years
c. For options vested on 09.11.2017 2.61 years 3 years from the vesting day
d. For options yet to be vested 3 years from the vesting day 3 years from the vesting day
221
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
e. ESOP Plan 2016 (Grant II)- 09.11.2017 253.70 NA
x. Time to maturity
a. For options vested on 01.08.2015 (Grant III) 0.33 years 1.33 years
b. For options vested on 01.08.2016 (Grant IV) 1.33 years 2.33 years
c. Additional grants vested on 21.11.2016 0.33 years and 1.33 years 1.33 years and 2.33 years
d. ESOP Plan 2016 (Grant I) vested on 08.11.2017 2.61 years NA
e. For options yet to be vested 3 years from the vesting day 3 years from the vesting day
Expected volatility during the expected term of the ESOP is based on historical volatility of the observed market prices of the Company's publicly traded
equity shares during a period equivalent to the expected term of the ESOP.
The fair values of our ESOP are based on the market value of our stock on the date of grant.
m. The following table summarizes information about Share Options outstanding as at year end:-
As at
March 31, 2018
Range of exercise prices No. of options outstanding Weighted average remaining Weighted average exercise price
per option ( ) contractual life ( )
1 1,946 0.33 years 1
1 1,641 1.33 years 1
1 88,022 2.61 years 1
1 1,56,384 Yet to be vested 1
As at
March 31, 2017
Range of exercise prices No. of options outstanding Weighted average remaining Weighted average exercise price
per option ( ) contractual life ( )
The total amount of the minimum lease payments, net of finance charges (interest) is consistent with the level of commitments from the lease agreements
222
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
As at As at
March 31, 2018 March 31, 2017
a. Commitments
i) Estimated amount of contracts remaining to be executed on capital expenditure and not 39.77 37.42
b. Contingent Liabilities
As at As at
ii) Claims against the Company not acknowledged as debts: March 31, 2018 March 31, 2017
Income Tax 3.39 19.20
61.41 77.47
The Group has been advised by its lawyers that none of the claims are tenable and is therefore contesting the same and hence has not been
provided for in the books. The future cash flows on account of the above cannot be determined unless the judgements /decisions are received from
the ultimate judicial forums. No reimbursements is expected to arise to the Group in repect of above cases.
As at As at
March 31, 2018 March 31, 2017
c. i) Outstanding Bank guarantees 9.89 34.24
ii) Corporate bank guarantee 258.93 253.18
Immovable assets aggregating 236.40 crores (March 31, 2017: 232.95 crores) have been mortgaged by deposit of title deeds in favour of BNP Paribas
& Standard Chartered towards loan extended to its subsidiary, M/s Lusako Trading Limited a Subsidiary of the Company. The loan is utilised by the said
subsidiary for its business purposes.
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
II. Other related parties with whom transactions have taken place during the year:
a) Key Management Personnel
Name of related parties Nature of relationship
Mr. K S Dhingra Director
Mr. G S Dhingra Director
Mr. Kanwardip Singh Dhingra Whole time director and relative of Mr G S Dhingra
Mrs. Rishma Kaur Whole time director and relative of Mr K S Dhingra
Mr. Abhijit Roy Managing Director & CEO
Mr. Srijit Dasgupta Director Finance & Chief Financial Officer
Mr. Aniruddha Sen Senior Vice President & Company Secretary
Mr. Kamal Ranjan Das Independent Director
Mr. Naresh Gujral Independent Director
Mr. Dhirendra Swarup Independent Director
Mr. Gopal Krishna Pillai Independent Director
b) Others
Name of related parties Nature of relationship
Berger Becker Coatings Private Limited Joint Venture of the Company
Berger Nippon Paint Automotive Coatings Private Limited Joint Venture of the Company
Jenson & Nicholson (Asia) Limited Fellow Subsidiary
Berger Paints (Bangaladesh) Limited Fellow Subsidiary
Citland Commercial Credits Limited Fellow Subsidiary
Wang Investment Finance Private Limited Fellow Subsidiary
Kanwar Properties Private Limited Fellow Subsidiary
Berger Paints Provident Fund (Covered) Post-employment benefit plan of the Company
Berger Paints Officers (Non-Management Category) Superannuation Fund Post-employment benefit plan of the Company
Berger Paints Management Staff Superannuation Fund Post-employment benefit plan of the Company
BAICL Employees Superannuation Fund Post-employment benefit plan of the Company
BAICL Employees Gratuity Fund Post-employment benefit plan of the Company
Seaward Packaging Private Limited Entity controlled by Key Managerial Personnel
Flex Properties Private Limited Entity controlled by Key Managerial Personnel
Wazir Estates Private Limited Entity controlled by Key Managerial Personnel
Bigg Investment & Finance Private Limited Entity controlled by Key Managerial Personnel
KSD Family Trust Mr K S Dhingra - Settlor Trustee
GBS Dhingra Family Trust Mr G S Dhingra - Settlor Trustee
Mrs. Meeta Dhingra Spouse of Mr K S Dhingra
Mrs. Vinu Dhingra Spouse of Mr G S Dhingra
Mrs. Jessima Kumar Daughter of Mr K S Dhingra
Ms. Dipti Dhingra Daughter of Mr K S Dhingra
Mrs. Sunaina Kohli Daughter of Mr G S Dhingra
Mrs. Anshna Sawhney Daughter of Mr G S Dhingra
Note 34 (b)
A. During the year the following transactions were carried out with the related parties in the ordinary course of business:
in Crores
Transaction Related Party March 31, 2018 March 31, 2017
Sale of Goods Berger Becker Coatings Private Limited 1.57 1.09
Berger Nippon Paint Automotive Coatings Private Limited 18.67 15.94
Wazir Estates Private Limited 0.04 0.07
Berger Paints (Bangaladesh) Limited 0.70 0.48
U K Paints (India) Private Limited 0.40 0.40
Mr. K S Dhingra * 0.03 0.00
Mr. G S Dhingra * 0.00 0.00
Seaward Packaging Private Limited * 0.00 0.00
Royalty Income Berger Paints (Bangaladesh) Limited 0.29 0.10
224
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Purchase of Goods U K Paints (India) Private Limited 68.15 62.24
Berger Becker Coatings Private Limited - 0.16
Seaward Packaging Private Limited 37.88 31.20
Berger Nippon Paint Automotive Coatings Private Limited 0.71 0.07
Processing Charges U K Paints (India) Private Limited 18.57 15.75
Seaward Packaging Private Limited - 0.04
Rent Expenses U K Paints (India) Private Limited 3.94 3.84
Flex Properties Private Limited 0.18 0.16
Kanwar Properties Private Limited 0.38 -
Mr. K S Dhingra 0.24 0.19
Mr. G S Dhingra 0.24 0.19
Security Deposit Given U K Paints (India) Private Limited - 0.05
Security Deposit Refunded U K Paints (India) Private Limited 0.11 -
Processing Income Berger Nippon Paint Automotive Coatings Private Limited 2.22 1.38
Rendering of Manpower Services U K Paints (India) Private Limited 0.02 -
Berger Becker Coatings Private Limited 0.16 0.20
Business Transfer in relation to the 4 Berger Nippon Paint Automotive Coatings Private Limited - 90.00
wheelers passenger cars and SUV,
3 wheelers and related ancillaries
(Refer Note No 26)
Contribution to Provident Fund Berger Paints Provident Fund (Covered) 13.26 12.70
Contribution to Gratuity Fund BAICL Employees Gratuity Fund 0.05 0.11
Contribution to Superannuation Fund Berger Paints Officers (Non-Management Category)
Superannuation Fund 0.58 0.64
Berger Paints Management Staff Superannuation Fund 1.28 1.34
BAICL Employees Superannuation Fund 0.08 0.06
Directors Commission & Fees Mr. K S Dhingra 0.10 0.10
Mr. G S Dhingra 0.10 0.10
Mr. Kamal Ranjan Das 0.03 0.03
Mr. Naresh Gujral 0.07 0.07
Mr. Dhirendra Swarup 0.07 0.07
Mr. Gopal Krishna Pillai 0.07 0.07
Equity Contribution Berger Nippon Paint Automotive Coatings Private Limited - 89.67
Key Management Personnel Mr. Abhijit Roy 2.58 2.20
Compensation Mr. Srijit Dasgupta 1.40 1.29
Mr. Aniruddha Sen 0.94 0.88
Mr. Kanwardip Singh Dhingra 0.23 0.26
Mrs. Rishma Kaur 0.23 0.27
Dividend Payment U K Paints (India) Private Limited 85.15 47.25
Jenson & Nicholson (Asia) Limited 24.61 14.07
Others 17.66 11.52
225
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Receivable Berger Becker Coatings Private Limited 1.52 0.20
Berger Nippon Paint Automotive Coatings Private Limited 5.40 1.89
Berger Paints (Bangaladesh) Limited 0.67 0.84
Corporate guarantee outstanding Berger Becker Coatings Private Limited 10.21 -
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel. No share
options have been granted to the non-executive members of the Board of Directors under this scheme. Refer to Note 31 for further details of the scheme.
* Refer Note 41
Notes:
a) Terms and conditions of transactions with related parties:
The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end
are unsecured and interest free and settlement occurs in cash except unless otherwise mentioned.
Note 34 (c)
During the year, National Company Law Tribunal has approved the Scheme of amalgamation (‘the Scheme’) between the Company and BJN Paints India
Limited (‘BJN’), India, a wholly owned step down subsidiary of the Company. The Scheme came into effect from March 29, 2018 after completion of all
related regulatory formalities.
Note 35(a) Disclosure of additional information pertaining to the Holding Company, Subsidiaries and Joint Ventures
in Crores
As At March 31, 2018 March 31, 2018 March 31, 2018 March 31, 2018
Net assets Share of Profit/Loss OCI TCI
% of % of % of % of
Entity Name consolidated Amount consolidated Amount consolidated Amount consolidated Amount
assets profit and loss OCI TCI
Holding
Berger Paints India Limited 95.34 2,092.24 92.12 424.51 3.37 1.16 85.95 425.67
Indian Subsidiaries
1) Beepee Coatings Private Limited 0.45 9.94 0.52 2.39 0.08 0.03 0.49 2.42
2) Saboo Coatings Private Limited 0.86 18.84 0.69 3.19 (0.17) (0.06) 0.63 3.13
Foreign Subsidiaries
1)Berger Jenson & Nicholson 6.03 132.28 7.80 35.94 - - 7.26 35.94
(Nepal) Private Limited
2)Berger Paints (Cyprus) (1.55) (33.99) (1.02) (4.72) - - (0.95) (4.72)
Limited consolidated with
226
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Berger Paints Overseas Limited
3)Lusako Trading Limited (5.30) (116.35) (0.24) (1.12) - - (0.23) (1.12)
consolidated with Bolix S.A. & Group *
Joint Ventures
1)Berger Becker Coatings Private Limited 0.31 6.85 1.49 6.85 0.09 0.03 1.39 6.88
Note 35(b). Disclosure of additional information pertaining to the Parent Company , Subsidiaries and Joint Ventures (Contd.)
in Crores
As at March 31, 2017 March 31, 2017 March 31, 2017 March 31, 2017
Net assets Share of Profit/Loss OCI TCI
Entity Name
% of Amount % of Amount % of Amount % of Amount
consolidated consolidated consolidated consolidated
assets profit and loss OCI TCI
Holding
Berger Paints India Limited 102.05 1,940.61 90.75 429.87 6.32 (1.20) 94.27 428.67
Indian Subsidiaries
1) Beepee Coatings Private Limited (0.10) (1.90) 0.09 0.43 2.49 (0.47) (0.01) (0.04)
Foreign Subsidiaries
1) Berger Jenson & Nicholson 5.35 101.66 5.88 27.86 - - 6.13 27.86
(Nepal) Private Limited
2) Berger Paints (Cyprus) Limited (1.57) (29.86) 0.64 3.04 - - 0.67 3.04
consolidated with Berger Paints
Overseas Limited
3) Lusako Trading Limited consolidated (8.28) (157.52) 0.51 2.41 - - 0.53 2.41
with Bolix S.A. & Group *
Joint Ventures
227
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
in Crores
Foreign Currency Translation Reserve - - - - 91.10 (17.25) (3.79) (17.25)
* Group includes Build-Trade BIS sp. z.o.o and Bolix UKRAINA OOO
Note: The above figures are after eliminating intra group transactions and intra group balances as on March 31, 2017
The table shown below analyses financial instruments carried at fair value. The different levels have been defined below:-
Level 1: Quoted Prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices)
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
a) Financial assets and liabilities measured at fair value through profit and loss at March 31, 2018
Financial Assets
Investment in Mutual Funds - 227.59 - 227.59
Investment in unquoted equity instruments* - - 0.00 -
Financial Liabilities
Derivatives not designated as hedges - - - -
Financial assets and liabilities measured at fair value through profit and loss at 31 March 2017
Financial Assets
Investment in Mutual Funds - 367.27 - 367.27
Investment in unquoted equity instruments* - - 0.00 -
Financial Liabilities
Derivatives not designated as hedges - 4.11 - 4.11
(c) During the year there has been no transfer from one level to another
228
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 37. Financial risk management objectives and policies
The Group's principal financial liabilities, other than derivatives, comprise borrowings and trade payables. The main purpose of these financial liabilities is to
finance The Group's working capital requirements . The Group has various financial assets such as trade receivables, loans, investments, short-term deposits
and cash & cash equivalents , which arise directly from its operations. The Group also holds 'Fair Value Through Other comprehensive Income' (FVTOCI)
investments and enters into derivative transactions by way of forward exchange contracts to hedge its payables .
The Group is exposed to market risk, credit risk and liquidity risk. The Group’s Board of Directors oversees the management of these risks. The Group’s Board
of Directors is supported by the Business Process and Risk Management Committee (BPRMC) that advises on financial risks and the appropriate financial
risk governance framework for The Group. The BPRMC provides assurance to The Group’s Board of Directors that The Group’s financial risk activities are
governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with The Group’s policies and
risk objectives. All derivative activities for risk management purposes are carried out by personnels that have the appropriate skills, experience and supervi-
sion. It is The Group’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised below.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market factors. Market risk compris-
es three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk , liquidity risk and commodity risk. Financial instruments
affected by market risk include loans and borrowings, deposits, FVTOCI investments and financial derivative.
The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and
the proportion of financial instruments in foreign currencies are all constant at March 31, 2018.
The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations.
The following assumptions have been made in calculating the sensitivity analysis:
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financial liabilities held at March 31, 2018 and March 31, 2017
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229
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Trade receivables
Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with
this assessment. Outstanding customer receivables are regularly monitored by BPRMC and corrective actions taken.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Group’s treasury department in accordance with the Group’s policy.
Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are
reviewed by the Group’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Group’s Finance Commit-
tee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.
The Group’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31, 2017 is the carrying amounts as
illustrated in Note 11.
Liquidity risk
The Group monitors its risk of a shortage of funds using a liquidity planning tool.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and
buyers' credit facilities. The Group assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Group has access to
a sufficient variety of sources of funding and debt.
The table below summarises the maturity profile of The Group’s financial liabilities based on contractual undiscounted payments.
INR in Crores
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached
to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to
immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current
period.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
Note 39 Expenditure on Research & Development
a. Details of Research & Development expenses incurred during the year, debited under various heads of Statement of Profit and Loss is given below
in Crores
March 31, 2018 March 31, 2017
Employee Benefit Expenses 10.05 9.08
Materials and Stores & Spares consumption 0.99 0.97
Power and Fuel 0.39 0.43
Depreciation 1.95 1.75
Others 1.17 0.77
14.55 13.00
b. Details of Capital expenditure incurred for Research & Development are given below
in Crores
Capital Expenditure 1.40 3.51
1.40 3.51
Total 15.95 16.51
Above includes allowable expenditure under section 35 (2AB) of the Income Tax Act
Capital expenditure 0.51 crores (March 31, 2017 1.10 crores)
Revenue expenditure 9.54 crores (March 31, 2017 8.72 crores)
The Holding Company has a research & development unit situated in Howrah, Kolkata which focuses on research on new and existing paint products,
formulation for cost optimization, environment friendly products etc.
Note 41. All figures are in Rupees Crores. Figures marked with (*) are below the rounding off norm adopted by the Holding Company.
FINANCIAL SUMMARY OF BERGER PAINTS INDIA LIMITED
(CONSOLIDATED) – FIVE YEARS AT A GLANCE
` Crores
Shareholders’ Funds:
Share Capital 97.10
Reserves and Surplus 2,097.41
Cash Earnings Per Share (`) 6.02
Earnings Per Share - Basic (`) 4.75
Earnings Per Share - Diluted (`) 4.74
Book Value Per Share (`) 22.59 19.58 16.09 18.96 16.16
Wt Avg No. of Shares 97,12,47,574.26
&DVK3UR¿W 585.04
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BRITISH PAINTS DIVISION
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DEHRADUN 9LMD\DZDGD– 520 007, Andhra Pradesh
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Notes
Notes