Asian Paints Limited

Independent Auditor’s Report

To the Members of Asian Paints Limited
The Key Audit Matter How was the matter addressed in
REPORT ON THE AUDIT OF THE STANDALONE our audit
FINANCIAL STATEMENTS Revenue recognition (Refer note 1.3 (f) and 22 of the
Opinion Standalone Financial Statements)
We have audited the accompanying Standalone Financial
Statements of Asian Paints Limited (“the Company”), which
comprise the Balance Sheet as at 31st March 2021, and the

income), Cash Flow Statement and Statement of Changes in

accounting policies and other explanatory information.

In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the
Companies Act, 2013 (“the Act”) in the manner so required
and give a true and fair view in conformity with the Indian Information Other than the Financial Statements
Accounting Standards prescribed under section 133 of the and Auditor’s Report Thereon
Act read with the Companies (Indian Accounting Standards) The Company’s Board of Directors is responsible for the
Rules, 2015, as amended (“Ind AS”), and other accounting other information. The other information comprises Board’s
Report, Report on Corporate governance and Business
of the Company as at 31st Responsibility report but does not include the Consolidated
Financial Statements, Standalone Financial Statements and
equity for the year ended on that date. our auditor’s report thereon.

Basis for Opinion not cover the other information and we do not express any
We conducted our audit of the Standalone Financial form of assurance conclusion thereon.
Statements in accordance with the Standards on Auditing
In connection with our audit of the Standalone Financial
responsibilities under those Standards are further described Statements, our responsibility is to read the other information
in the Auditor’s Responsibility for the Audit of the Standalone and, in doing so, consider whether the other information
Financial Statements section of our report. We are is materially inconsistent with the Standalone Financial
independent of the Company in accordance with the Code Statements or our knowledge obtained during the course of
of Ethics issued by the Institute of Chartered Accountants our audit or otherwise appears to be materially misstated.
of India (ICAI) together with the ethical requirements If, based on the work we have performed, we conclude that
that are relevant to our audit of the Standalone Financial there is a material misstatement of this other information,
Statements under the provisions of the Act and the Rules we are required to report that fact. We have nothing to
report in this regard.
responsibilities in accordance with these requirements
and the ICAI’s Code of Ethics. We believe that the audit Management’s Responsibility for the Standalone
Financial Statements
provide a basis for our audit opinion on the Standalone The Company’s Board of Directors is responsible for the
Financial Statements.
the preparation of these Standalone Financial Statements
Key Audit Matter
Key audit matters are those matters that, in our professional

Standalone Financial Statements of the current period. accordance with the Ind AS and other accounting principles
These matters were addressed in the context of our audit generally accepted in India. This responsibility also includes
of the Standalone Financial Statements as a whole, and maintenance of adequate accounting records in accordance
in forming our opinion thereon, and we do not provide a with the provisions of the Act for safeguarding the assets of
separate opinion on these matters. We have determined the Company and for preventing and detecting frauds and
the matter described below to be the key audit matter to be other irregularities; selection and application of appropriate
communicated in our report. accounting policies; making judgments and estimates that

186 Annual Report 2020-21

 Financial Statements

are reasonable and prudent; and design, implementation

used and the reasonableness of accounting estimates
and related disclosures made by the management.
and completeness of the accounting records, relevant to the
preparation and presentation of the Standalone Financial
of the going concern basis of accounting and, based
Statements that give a true and fair view and are free from
on the audit evidence obtained, whether a material
material misstatement, whether due to fraud or error.
uncertainty exists related to events or conditions
In preparing the Standalone Financial Statements,
management is responsible for assessing the Company’s ability to continue as a going concern. If we conclude
ability to continue as a going concern, disclosing, as that a material uncertainty exists, we are required to
applicable, matters related to going concern and using the draw attention in our auditor’s report to the related
going concern basis of accounting unless management either disclosures in the Standalone Financial Statements or, if
intends to liquidate the Company or to cease operations, or such disclosures are inadequate, to modify our opinion.
has no realistic alternative but to do so.
obtained up to the date of our auditor’s report. However,
Those Board of Directors are also responsible for overseeing
future events or conditions may cause the Company to
cease to continue as a going concern.
Auditor’s Responsibility for the Audit of the
Standalone Financial Statements of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial
whether the Standalone Financial Statements as a whole Statements represent the underlying transactions and
are free from material misstatement, whether due to fraud events in a manner that achieves fair presentation.
or error, and to issue an auditor’s report that includes our
Materiality is the magnitude of misstatements in the
opinion. Reasonable assurance is a high level of assurance,
Standalone Financial Statements that, individually or in
but is not a guarantee that an audit conducted in accordance
aggregate, makes it probable that the economic decisions of
with SAs will always detect a material misstatement when it
a reasonably knowledgeable user of the Standalone Financial
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
decisions of users taken on the basis of these Standalone
Financial Statements.
the Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise
We communicate with those charged with governance
professional judgment and maintain professional skepticism
regarding, among other matters, the planned scope and
throughout the audit. We also:

of the Standalone Financial Statements, whether due during our audit.

to fraud or error, design and perform audit procedures
We also provide those charged with governance with a
responsive to those risks, and obtain audit evidence
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
for our opinion. The risk of not detecting a material
with them all relationships and other matters that may
misstatement resulting from fraud is higher than for
reasonably be thought to bear on our independence, and
one resulting from error, as fraud may involve collusion,
where applicable, related safeguards.
forgery, intentional omissions, misrepresentations, or
the override of internal control. From the matters communicated with those charged with
governance, we determine those matters that were of
relevant to the audit in order to design audit procedures
Statements of the current period and are therefore the key
that are appropriate in the circumstances. Under
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
expressing our opinion on whether the Company has
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public

Standalone 187
Asian Paints Limited

Independent Auditor’s Report (Contd.)

Report on Other Legal and Regulatory In our opinion and to the best of our information
Requirements and according to the explanations given to us, the
remuneration paid by the Company to its directors
audit, we report that: during the year is in accordance with the provisions of
section 197 of the Act.
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and h) With respect to the other matters to be included in
belief were necessary for the purposes of our audit. the Auditor’s Report in accordance with Rule 11 of the
b) In our opinion, proper books of account as required by
in our opinion and to the best of our information and
law have been kept by the Company so far as it appears
according to the explanations given to us:
from our examination of those books.
i. The Company has disclosed the impact of pending
including other comprehensive income, the Cash Flow
Financial Statements.
Statement and the Statement of Changes in Equity dealt
with by this Report are in agreement with the relevant ii. The Company did not have any long-term contracts
books of account. including derivative contracts for which there were
any material foreseeable losses.
d) In our opinion, the aforesaid Standalone Financial
iii. There has been no delay in transferring amounts
Section 133 of the Act. required to be transferred to the Investor
Education and Protection Fund by the Company.
from the directors as on 31st March, 2021 taken on
record by the Board of Directors, none of the directors is
st
March, 2021 from being appointed

For Deloitte Haskins & Sells LLP

Chartered Accountants
Firm’s Registration No: 117366W/W-100018
Abhijit A. Damle
Partner
g) With respect to the other matters to be included in the
Mumbai Membership No 102912
Auditor’s Report in accordance with the requirements
of section 197(16) of the Act, as amended,

188 Annual Report 2020-21

 Financial Statements

Annexure “A” to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other We believe that the audit evidence we have obtained is
Legal and Regulatory Requirements’ section of our
report of even date)
Report on the Internal Financial Controls Over
Financial Reporting under Clause (i) of Sub-section Meaning of Internal Financial Controls Over
3 of Section 143 of the Companies Act, 2013 (“the Financial Reporting
Act”)
is a process designed to provide reasonable assurance

as of 31st March, 2021 in conjunction with our audit of the preparation of Financial Statements for external purposes in
Standalone Financial Statements of the Company for the accordance with generally accepted accounting principles. A
year ended on that date.
includes those policies and procedures that (1) pertain to the
Management’s Responsibility for Internal Financial maintenance of records that, in reasonable detail, accurately
Controls
The Company’s management is responsible for establishing assets of the Company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit
preparation of Financial Statements in accordance with
by the Company considering the essential components of generally accepted accounting principles, and that receipts
and expenditures of the Company are being made only in
Internal Financial Controls over Financial Reporting issued accordance with authorisations of management and directors
by the Institute of Chartered Accountants of India (“ICAI”). of the Company; and (3) provide reasonable assurance
These responsibilities include the design, implementation regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the Company’s assets that

to Company’s policies, the safeguarding of its assets, the Inherent Limitations of Internal Financial Controls
prevention and detection of frauds and errors, the accuracy Over Financial Reporting
and completeness of the accounting records, and the timely

under the Companies Act, 2013. of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and
Auditor’s Responsibility not be detected. Also, projections of any evaluation of the

Company based on our audit. We conducted our audit in

because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Note”) issued by the Institute of Chartered Accountants of
India and the Standards on Auditing prescribed under Section Opinion
In our opinion, to the best of our information and according
to the explanations given to us, the Company has, in all

requirements and plan and perform the audit to obtain

reasonable assurance about whether adequate internal
as at 31st March, 2021, based on the criteria for internal

all material respects. Company considering the essential components of internal

Institute of Chartered Accountants of India.

For Deloitte Haskins & Sells LLP
Chartered Accountants
Firm’s Registration No: 117366W/W-100018
the risk that a material weakness exists, and testing and
Abhijit A. Damle
internal control based on the assessed risk. The procedures Partner
selected depend on the auditor’s judgement, including the Mumbai Membership No 102912
assessment of the risks of material misstatement of the
Financial Statements, whether due to fraud or error.

Standalone 189
Asian Paints Limited

Annexure B to Independent Auditors’ Report

(Referred to in paragraph 2 under ‘Report on Other (b) The schedule of repayment of principal and
Legal and Regulatory Requirements’ section of our payment of interest has been stipulated and
report of even date) repayments or receipts of principal amounts and
interest have been regular as per stipulations.
i. (a) The Company has maintained proper records
showing full particulars, including quantitative (c) There is no overdue amount remaining outstanding
as at the year-end.
(b) The Company has a regular programme of physical iv. In our opinion and according to information and
explanations given to us, the Company has complied
with provisions of Section 185 and 186 of the Act in
of three years. In our opinion, this periodicity of respect of grant of loans, making investments and
providing guarantees and securities, as applicable.
to the size of the Company and the nature of its
v. In our opinion and according to the information and
explanations given to us, the Company has not accepted
any deposit from the public in accordance with the
during the year. According to the information and
provisions of Sections 73 to 76 or any other relevant
explanations given to us, no material discrepancies
provisions of the Act and the rules framed there

(c) According to the information and explanations applicable to the Company.

given to us and the records examined by us including
vi. We have broadly reviewed the cost records maintained
registered title deeds, we report that, the title
by the Company pursuant to the Companies (Cost
deeds, comprising all the immovable properties of
land and buildings which are freehold, are held in
the name of the Company as at the Balance Sheet
date. In respect of immovable properties of land
opinion that, prima facie, the prescribed cost records
that have been taken on lease and disclosed as
have been made and maintained.
Right of Use Assets in the Financial Statements, the
lease agreements are in the name of the Company, vii. According to the information and explanations given to
where the Company is the lessee in the agreement. us, in respect of statutory dues:
ii. The inventory, except goods-in-transit and stocks (a) The Company has generally been regular in
depositing undisputed statutory dues, including
by the management during the year. In our opinion, Provident Fund, Employees’ State Insurance,

stocks lying with third parties at the year end, written cess and other material statutory dues applicable
to it to the appropriate authorities.
(b) There were no undisputed amounts payable in
the book records were not material and have been dealt
respect of Provident Fund, Employees’ State
with in books of account.
iii. According to the information and explanations given to Service Tax, cess and other material statutory
us, the Company has granted loans, unsecured, to one dues in arrears as at 31st March, 2021 for a period
of its wholly owned subsidiary Company, covered in the of more than six months from the date they
register maintained under section 189 of the Companies became payable.
Act, 2013, in respect of which:
(c) Details of dues of Income Tax, Sales Tax, Service
(a) The terms and conditions of the grant of such loans Tax, Excise Duty, and Value Added Tax which have
are, in our opinion, prima facie, not prejudicial to not been deposited as on 31st March, 2021 on
the Company’s interest. account of disputes are given below:

190 Annual Report 2020-21

 Financial Statements

Name of Statute Nature of Dues Forum where Period to which the Amount Amount under Amount Unpaid
dispute is pending Relates involved ( In crores)
( in crores)
Income Tax IT Matters under CIT (A) A.Y. 2017-18 77.18 37.96
dispute
CIT (A) A.Y. 2016-17 51.23
Tribunal / CIT (A) A.Y. 2015-16 13.92 6.05
Tribunal / CIT (A) 9.72 -
Tribunal / CIT (A) 2.61 -
Tribunal / CIT (A) A.Y. 2012-13 2.92 -
A.Y. 2006-07 0.82 -
High Court A.Y. 2007-08 0.09 0.09
A.Y. 2009-10 0.11 0.11
Tribunal A.Y. 2010-11 0.13 0.13
CIT (A) A.Y. 2011-12 0.32
Tribunal A.Y. 2011-12 0.31 0.31
Total A 175.61 96.20
Sales tax Assessment Dues Assessing Authority F.Y. 1997-98 79.76 77.95
F.Y. 2000-01 to F.Y. 2002-03

F.Y. 2016-17 to F.Y. 2017-18

First Appellate level F.Y. 1997-98 to F.Y. 1998-99 30.51 25.00
F.Y. 2000-01 to F.Y. 2016-17
Second Appellate 0.01 -
level F.Y. 2017-18
Tribunal F.Y. 1991-92 16.51

F.Y. 1996-97 to F.Y. 1999-00

F.Y. 2000-01 to F.Y. 2011-12

F.Y. 2016-17
High Court 1.25 0.61
F.Y. 2000-01 to F.Y. 2005-06
F.Y. 2007-08
Supreme Court F.Y. 1992-93 0.16 0.16

Total B 128.20 114.18

Central Excise Act, Assessment Dues Adjudicating F.Y. 2020-21 0.33 -
Authority

Act, 1962
First Appellate F.Y. 1986-87 2.28 1.87
F.Y. 1996-97
F.Y. 2005-06 to F.Y. 2011-12

F.Y. 2018-19 to F.Y. 2020-21

Tribunal F.Y. 2005-06 to F.Y. 2016-17 5.18
F.Y. 2018-19
Total C 9.45 7.05
Total (A+B+C) 313.26 217.43

Standalone 191
Asian Paints Limited

Annexure B to Independent Auditors’ Report (Contd.)

viii. In our opinion and according to the information xiii. According to the information and explanations given
and explanations given to us, the Company has not to us, all transactions with the related parties are in
defaulted during the year in repayment of dues to compliance with Section 177 and 188 of Act, where
bankers and government. The Company did not have applicable and the details have been disclosed in the
Financial Statements as required by the applicable
debenture holders during the year. Indian Accounting Standards.
ix. The Company did not have any term loans outstanding xiv. During the year, the Company has not made any
during the year. The Company has not raised moneys preferential allotment or private placement of shares
or fully or partly convertible debentures and hence
(including debt instruments) or term loans and hence
to the Company.
x. To the best of our knowledge and according to the xv. According to the information and explanations given
information and explanations given to us, no fraud by to us and based on our examination of the records of
the Company and no material fraud on the Company by the Company, the Company has not entered into non-
cash transactions with directors or persons connected
during the year. with him and hence provisions of section 192 of the
Companies Act, 2013 are not applicable.
xi. According to the information and explanations given
to us, managerial remuneration has been paid or xvi. According to information and explanations given to us,
provided in accordance with the requisite approvals the Company is not required to be registered under
mandated by the provisions of Section 197 read with
Schedule V to the Act.
xii. According to the information and explanations given to
For Deloitte Haskins & Sells LLP
us, the Company is not a Nidhi Company as prescribed
Chartered Accountants
Firm’s Registration No: 117366W/W-100018
to the Company. Abhijit A. Damle
Partner
Mumbai Membership No 102912

192 Annual Report 2020-21

 Financial Statements

Balance
as at 31 March, 2021
st
Sheet
( in Crores)

As at As at
Notes
31.03.2021 31.03.2020
ASSETS
Non-Current assets
Property, Plant and Equipment 2A 3,810.94
Right of Use Asset 2B 714.79 726.63
Capital work-in-progress 110.11 108.09
3A 35.36 35.36
3B 41.52 50.27
Investments in Subsidiaries and Associates 1,176.99 1,176.99
Financial Assets
Investments 984.95
Loans 5 57.02
6 522.17
Current Tax Assets (Net) 7 132.84
8 39.44 32.87
7,626.13 7,761.92
Current assets
Inventories 9 3,124.61
Financial Assets
Investments 3,178.81
Trade Receivables 10 1,809.75 1,109.22
Cash and Cash Equivalents 11A 113.27 336.96
11B 21.64 39.10
Loans 5 24.55 21.31
6 1,237.50
8 446.41 212.33
9,956.54 5,825.70
Total Assets 17,582.67 13,587.62
EQUITY AND LIABILITIES
Equity
Equity Share Capital 12 95.92 95.92
13 11,995.18 9,357.37
12,091.10 9,453.29
Liabilities
Non-Current Liabilities
Financial Liabilities
Borrowings 14.31 18.50
Lease Liabilities 15 468.73
16 1.09
Provisions 17 163.51 136.78
Deferred Tax Liabilities (Net) 18C 265.19 282.68
19 3.41
916.24 939.28
Current Liabilities
Financial Liabilities
Lease Liabilities 15 157.22
Trade Payables
20 53.55
20 2,760.75
16 1,284.48 1,118.89
19 173.73 80.92
Provisions 17 57.91
Current Tax Liabilities (Net) 21 87.69
4,575.33 3,195.05
Total Equity and Liabilities 17,582.67 13,587.62
1
See accompanying notes to the Financial Statements
As per our report of even date attached For and on behalf of the Board of Directors of Asian Paints Limited

For Deloitte Haskins & Sells LLP Ashwin Dani Amit Syngle
Chartered Accountants Chairman
F.R.N: 117366W/W-100018 DIN: 00009126 DIN:07232566
Abhijit A. Damle M.K. Sharma R.J. Jeyamurugan
Partner Chairman of Audit Committee
Membership No: 102912
Mumbai Mumbai
12th May, 2021 12th May, 2021

Standalone 193
Asian Paints Limited

for the year ended 31st March, 2021

( in Crores)

Year Year
Particulars Notes
2020-21 2019-20

REVENUE FROM OPERATIONS

Revenue from Sale of Products 22A 18,252.46 17,025.26
Revenue from Sale of Services 22A 27.60 0.35
22A 236.80
23 366.32
Total Income (I) 18,883.18 17,551.63
EXPENSES
Cost of Materials Consumed 8,524.17
Purchases of Stock-in-Trade 1,649.06 1,283.88
(90.70) (210.21)
25 1,128.66
26 2,812.48
Total (II) 14,023.67 13,337.05
EARNING BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) (I-II) 4,859.51
Finance Costs 27 71.66 78.38
Depreciation and Amortisation Expense 28 697.47 689.97
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 4,090.38 3,446.23
Exceptional Items - 33.20
PROFIT BEFORE TAX 4,090.38 3,413.03
Tax Expense 18
(1) Current Tax 1,052.72 871.15
(2) Short tax provision for earlier years 6.46 5.66
(3) Deferred Tax (21.31) (117.73)
Total tax expense 1,037.87 759.08
PROFIT AFTER TAX 3,052.51 2,653.95
OTHER COMPREHENSIVE INCOME (OCI)

(5.32) (10.83)
1.34 1.01
57.26
(ii) Income tax expense on net fair value gain on investments in equity instruments (4.88) (8.71)

2.41 2.81
(ii) Income tax expense on net fair value gain on investments in debt instruments (0.28) (0.32)

Total Other Comprehensive Income (A+B) 50.53 50.40

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 3,103.04 2,704.35
Earnings per equity share (Face value of 1 each)
(1) Basic (in ) 31.82 27.67
(2) Diluted (in ) 31.82 27.67
1
See accompanying notes to the Financial Statements

As per our report of even date attached For and on behalf of the Board of Directors of Asian Paints Limited

For Deloitte Haskins & Sells LLP Ashwin Dani Amit Syngle
Chartered Accountants Chairman
F.R.N: 117366W/W-100018 DIN: 00009126 DIN:07232566
Abhijit A. Damle M.K. Sharma R.J. Jeyamurugan
Partner Chairman of Audit Committee
Membership No: 102912
Mumbai Mumbai
12th May, 2021 12th May, 2021

194 Annual Report 2020-21

 Financial Statements

Statement of Changes in Equity

for the year ended 31 March, 2021
st

( in Crores)
As at As at
31.03.2021 31.03.2020
Balance at the beginning of the reporting year 95.92 95.92
Changes in Equity Share capital during the year - -
Balance at the end of the reporting year 95.92 95.92

( in Crores)
Reserves and Surplus
Debt Equity
Capital Capital General Retained instruments instruments Total
Reserve Redemption Reserve earnings through OCI through OCI
Reserve
Balance as at 1st April, 2019 (A) 44.38 0.50 4,166.74 4,424.53 (0.01) 110.90 8,747.04
Additions during the year :
- - - 2,653.95 - - 2,653.95

- - - (9.82) - - (9.82)
Net fair value gain on investments in equity - - - - - 57.73 57.73

Net fair value gain on investments in debt - - - - -

Total Comprehensive Income for the year 2019-20 (B) - - - 2,644.13 2.49 57.73 2,704.35
Reductions during the year :
Dividends (Refer note 30) - - - - -
Income tax on dividend (Refer note 30) - - - (353.07) - - (353.07)
Total (C) - - - (2,094.02) - - (2,094.02)
Balance as at 31st March, 2020 (D) = (A+B+C) 44.38 0.50 4,166.74 4,974.64 2.48 168.63 9,357.37
Additions during the year :
- - - 3,052.51 - - 3,052.51
-
- - - (3.98) - - (3.98)
Net fair value gain on investments in equity - - - - - 52.38 52.38

Net fair value gain on investments in debt - - - - 2.13 - 2.13

Total Comprehensive Income for the year 2020-21 (E) - - - 3,048.53 2.13 52.38 3,103.04
Reductions during the year :
Dividends (Refer note 30) - - - (465.23) - - (465.23)
Total (F) - - - (465.23) - - (465.23)
Balance as at 31st March, 2021 (D+E+F) 44.38 0.50 4,166.74 7,557.94 4.61 221.01 11,995.18
(Refer note 1)
See accompanying notes to the Financial Statements

As per our report of even date attached For and on behalf of the Board of Directors of Asian Paints Limited

For Deloitte Haskins & Sells LLP Ashwin Dani Amit Syngle
Chartered Accountants Chairman
F.R.N: 117366W/W-100018 DIN: 00009126 DIN:07232566
Abhijit A. Damle M.K. Sharma R.J. Jeyamurugan
Partner Chairman of Audit Committee
Membership No: 102912
Mumbai Mumbai
12th May, 2021 12th May, 2021

Standalone 195
Asian Paints Limited

Cash Flow Statement

for the year ended 31 March, 2021
st

( in Crores)
Year Year
2020-21 2019-20
(A) CASH FLOW FROM OPERATING ACTIVITIES
4,090.38
Adjustments for:
Depreciation and amortisation expense 697.47 689.97
Interest income (41.20)
Dividend income (16.45)
Finance costs 71.66 78.38
Allowance for doubtful debts and advances 27.90 15.27
0.56 6.18
Deferred income arising from government grant (2.28)
Net unrealised foreign exchange (gain)/ loss (16.73)
(18.37) (10.50)
(1.72) (0.96)

loss (FVTPL) (92.28) (75.26)

Impairment loss on non-current investments - subsidiaries - 33.20
- 8.01
4,698.94 4,116.02
Adjustments for :
(Increase)/Decrease in trade receivables (724.39) 116.12
(242.73) 18.85
(Increase) in inventories (297.14)
(Increase)/Decrease in other assets (234.99) 95.82
Increase/(Decrease) in trade and other payables 1,234.30 (368.18)
Increase in provisions 40.50 10.16
Cash generated from Operating activities 4,474.49 3,746.42
Income Tax paid (net of refund) (1,014.99) (933.35)
Net Cash generated from Operating activities 3,459.50 2,813.07

(B) CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Property, plant and equipment (210.56)
Sale of Property, plant and equipment (including advances) 25.56 26.35
Payment for acquiring right of use assets (7.14) (9.79)
Loan given to subsidiary (1.85) (6.25)
Purchase of non-current investments - Subsidiaries -
Purchase of non-current investments - others (0.50)
Sale of non-current investments 272.32 85.50
Purchase of term deposits (897.11)
Proceeds from maturity of term deposits 458.01 222.53
Sale of current investments (net) (139.34) 31.26
Interest received 47.21
Dividend received from subsidiaries 8.64 8.13
Dividend received from others 7.81 26.60
Net Cash (used in) Investing activities (436.95) (774.65)

196 Annual Report 2020-21

 Financial Statements

Cash Flow Statement (Contd.)

for the year ended 31st March, 2021

( in Crores)
Year Year
2020-21 2019-20
(C) CASH FLOW FROM FINANCING ACTIVITIES
(Repayment) of non-current borrowings (5.90) -
Proceeds from non-current borrowings 1.96 17.86
Acceptances (net) 115.17 (202.80)
Repayment of lease liabilities (158.71)
Finance costs paid (69.36) (76.78)
Dividend and Dividend tax paid (466.06)
Net Cash (used in) Financing activities (582.90) (2,500.85)

(D) 2,439.65

Add: Cash and cash equivalents as at 1st April 693.93 1,156.36

Cash and cash equivalents as at 31st March 3,133.58 693.93

Notes:
(a) The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in the Indian Accounting Standard
(Ind AS 7) - Statement of Cash Flow.
(b) In the presentation of the Cash Flow Statement for the year ended 31 st

(i.e. year ended 31st

on any other line item in the Financial Statements.
( in Crores)
As at As at
31.03.2021 31.03.2020
(c) Cash and Cash Equivalents comprises of
Cash on hand 0.02
Balances with Banks:
- Current Accounts 81.62 131.32
- Cash Credit Account 12.27 205.60
Cheques, draft on hand 19.36 -
Cash and cash equivalents (Refer note 11A) 113.27 336.96
3,020.31 356.97
Cash and cash equivalents in Cash Flow Statement 3,133.58 693.93

(Refer note 1)
See accompanying notes to the Financial Statements

As per our report of even date attached For and on behalf of the Board of Directors of Asian Paints Limited

For Deloitte Haskins & Sells LLP Ashwin Dani Amit Syngle
Chartered Accountants Chairman
F.R.N: 117366W/W-100018 DIN: 00009126 DIN:07232566
Abhijit A. Damle M.K. Sharma R.J. Jeyamurugan
Partner Chairman of Audit Committee
Membership No: 102912
Mumbai Mumbai
12th May, 2021 12th May, 2021

Standalone 197
Asian Paints Limited

Notes to the Financial Statements

for the year ended 31 March, 2021
st

COMPANY BACKGROUND
Asian Paints Limited (the ‘Company’) is a public limited assets and liabilities, the Company has ascertained its
Company domiciled and incorporated in India under the Indian normal operating cycle as twelve months. This is based
on the nature of services and the time between the
is located at 6A, Shantinagar, Santacruz East, Mumbai, India. acquisition of assets or inventories for processing and
their realization in cash and cash equivalents.
The Company is engaged in the business of manufacturing,
selling and distribution of paints, coatings, products related

a) Business combinations
1. SIGNIFICANT ACCOUNTING POLICIES AND KEY Business combinations are accounted for using
ACCOUNTING ESTIMATES AND JUDGEMENTS the acquisition method. At the acquisition date,

are measured at fair value. For this purpose, the

1.1. Basis of preparation of Financial Statements liabilities assumed include contingent liabilities
These Financial Statements are the separate Financial
representing present obligation and they are
Statements of the Company (also called Standalone
measured at their acquisition date fair values
Financial Statements) prepared in accordance with

section 133 of the Companies Act, 2013, read together

consideration transferred is measured at fair value
with the Companies (Indian Accounting Standards)
at acquisition date and includes the fair value of
Rules, 2015 (as amended).
any contingent consideration. However, deferred
These Financial Statements have been prepared and tax asset or liability and any liability or asset
presented under the historical cost convention, on the
from a business combination are measured and
recognized in accordance with the requirements of
values at the end of each reporting period, as stated in Ind AS 12, Income Taxes and Ind AS 19, Employee
the accounting policies set out below. The accounting
policies have been applied consistently over all the
Where the consideration transferred exceeds the
periods presented in these Financial Statements.
and liabilities assumed, the excess is recorded as
goodwill. Alternatively, in case of a bargain purchase
wherein the consideration transferred is lower
any of the following conditions:
i. the asset/liability is expected to be realized/settled acquired and liabilities assumed, the Company
in the Company’s normal operating cycle;
ii. the asset is intended for sale or consumption;
comprehensive income and accumulate the gain in
iii. the asset/liability is held primarily for the equity as capital reserve. The costs of acquisition
purpose of trading; excluding those relating to issue of equity or debt
iv. the asset/liability is expected to be realized/settled
and Loss in the period in which they are incurred.
within twelve months after the reporting period;
In case of business combinations involving entities
v. the asset is cash or cash equivalent unless it is
under common control, the above policy does not
restricted from being exchanged or used to settle
apply. Business combinations involving entities
a liability for at least twelve months after the
under common control are accounted for using
reporting date;
the pooling of interests method. The net assets
vi. in the case of a liability, the Company does not of the transferor entity or business are accounted
have an unconditional right to defer settlement at their carrying amounts on the date of the
of the liability for at least twelve months after the acquisition subject to necessary adjustments
reporting date. required to harmonise accounting policies. Any
excess or shortfall of the consideration paid over
the share capital of transferor entity or business is
as non-current.
recognised as capital reserve under equity.

198 Annual Report 2020-21

 Financial Statements

b) Goodwill c) Property, plant and equipment

Measurement at recognition:
An item of property, plant and equipment
acquired in a business combination that are not
recognition at cost. Following initial recognition,
items of property, plant and equipment are carried
excess of the consideration transferred over the at its cost less accumulated depreciation and
accumulated impairment losses.
assumed, measured in accordance with Ind AS 103,
‘Business Combinations’.
part of an item of property, plant and equipment

life and hence is not subject to amortization but to the total cost of that item of property, plant and
tested for impairment at least annually. After initial equipment and has useful life that is materially
recognition, goodwill is measured at cost less any
accumulated impairment losses.
The cost of an item of property, plant and equipment
For the purpose of impairment testing, goodwill comprises of its purchase price including import
acquired in a business combination, is from duties and other non-refundable purchase taxes
the acquisition date, allocated to each of the or levies, directly attributable cost of bringing
the asset to its working condition for its intended
use and the initial estimate of decommissioning,
restoration and similar liabilities, if any. Any trade
discounts and rebates are deducted in arriving at
the purchase price. Cost includes cost of replacing
a part of a plant and equipment if the recognition
criteria are met. Expenses directly attributable to
the lowest level at which goodwill is monitored for new manufacturing facility during its construction
internal management purpose and it is not larger period are capitalized if the recognition criteria
than an operating segment of the Company. are met. Expenditure related to plans, designs and
drawings of buildings or plant and machinery is
capitalized under relevant heads of property, plant
for impairment annually, and whenever there
and equipment if the recognition criteria are met.
Items such as spare parts, stand-by equipment
including the goodwill, with the recoverable
of property, plant and equipment are capitalized
at cost and depreciated over their useful life.
Costs in nature of repairs and maintenance are
regarded as not impaired. If the carrying amount
and when incurred.
The Company had elected to consider the carrying
value of all its property, plant and equipment
appearing in the Financial Statements prepared

under the section 133 of the Companies Act

loss on goodwill is recognized in the Statement of
2013, read together with Rule 7 of the Companies
goodwill is not reversed in subsequent periods.
deemed cost in the opening Ind AS Balance sheet
prepared on 1st April, 2015.
Capital work in progress and Capital advances:
Cost of assets not ready for intended use, as on
determining the gain or loss on disposal.
the Balance Sheet date, is shown as capital work
in progress. Advances given towards acquisition

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Asian Paints Limited

Notes to the Financial Statements (Contd.)

years, which is higher than the life prescribed

Depreciation:
in Schedule II.
Depreciation on each part of an item of property,
plant and equipment is provided using the Straight The useful lives, residual values of each part
Line Method based on the useful life of the asset of an item of property, plant and equipment
as estimated by the management and is charged and the depreciation methods are reviewed at

requirement of Schedule II of the Companies

Act, 2013. The estimate of the useful life of the such change is accounted for as a change in an
assets has been assessed based on technical accounting estimate.
advice which considers the nature of the asset,
Derecognition:
the usage of the asset, expected physical wear
The carrying amount of an item of property, plant
and tear, the operating conditions of the asset,
and equipment is derecognised on disposal or when
anticipated technological changes, manufacturers
warranties and maintenance support, etc. The
use or disposal. The gain or loss arising from the
estimated useful life of items of property, plant
derecognition of an item of property, plant and
and equipment is mentioned below:
the net disposal proceeds and the carrying amount
Years
of the item and is recognized in the Statement of
Factory Buildings 30
Buildings (other than factory buildings) 60
Plant and Equipment (including continuous 10-20 d) Intangible assets
process plants) Measurement at recognition:
8 Intangible assets acquired separately are measured
Furniture and Fixtures 8 on initial recognition at cost. Intangible assets
arising on acquisition of business are measured
5
at fair value as at date of acquisition. Internally
Information Technology Hardware
generated intangibles including research cost
Freehold land is not depreciated. Leasehold are not capitalized and the related expenditure is
improvements are amortized over the
period of the lease. the period in which the expenditure is incurred.
Following initial recognition, intangible assets are
The Company, based on technical assessment
carried at cost less accumulated amortization and
made by technical expert and management
accumulated impairment loss, if any.
estimate, depreciates certain items of property,
plant and equipment (as mentioned below) over The Company had elected to consider the carrying
value of all its intangible assets appearing in the
the useful lives prescribed under Schedule II to the Financial Statements prepared in accordance with
Companies Act, 2013. The management believes
that these estimated useful lives are realistic and 133 of the Companies Act, 2013, read together with

the assets are likely to be used. and used the same as deemed cost in the opening
Ind AS Balance sheet prepared on 1st April, 2015.
are estimated in the range of 10-20 years. Amortization:

in Schedule II. on a Straight Line basis over the estimated useful

economic life. The amortization expense on
over the estimated useful life of 8 years, which
is higher than the life prescribed in Schedule II.
useful life of intangible assets is mentioned below:

useful life of 5 years, which is lower than the

life prescribed in Schedule II.

200 Annual Report 2020-21

 Financial Statements

arm’s length transaction between knowledgeable,

Years
willing parties, less the cost of disposal.
Purchase cost, user license fees and
consultancy fees for Computer Software Impairment losses, if any, are recognized in

research) in depreciation and amortization expense.

Acquired Trademark 5
Impairment losses, on assets other than goodwill

The amortization period and the amortization only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would
have been determined if no impairment loss had
previously been recognized.
estimates, such change is accounted for as a
change in an accounting estimate. f) Revenue
Derecognition: Revenue from contracts with customers is
The carrying amount of an intangible asset is recognized on transfer of control of promised
derecognised on disposal or when no future goods or services to a customer at an amount that

or disposal. The gain or loss arising from the expected to be entitled to in exchange for those
derecognition of an intangible asset is measured as goods or services.
Revenue towards satisfaction of a performance
and the carrying amount of the intangible asset obligation is measured at the amount of transaction
price (net of variable consideration) allocated
Loss when the asset is derecognised.
price of goods sold and services rendered is net
e) Impairment of variable consideration on account of various

example goodwill, are not subject to amortization as part of the contract. This variable consideration
and are tested for impairment annually and is estimated based on the expected value of
whenever there is an indication that the asset
may be impaired. is recognized only to the extent that it is highly
Assets that are subject to depreciation and probable that the amount will not be subject to
amortization and assets representing investments
in subsidiary and associate companies are reviewed recognition is resolved.
for impairment, whenever events or changes in Sale of products:
circumstances indicate that carrying amount may Revenue from sale of products is recognized when
not be recoverable. Such circumstances include, the control on the goods have been transferred to
the customer. The performance obligation in case
decline in revenues or earnings and material
adverse changes in the economic environment. when the material is shipped to the customer or
An impairment loss is recognized whenever the
carrying amount of an asset or its cash generating in the contract.
Rendering of services:
recoverable amount of an asset is the greater of Revenue from services is recognized over time
its fair value less cost to sell and value in use. To by measuring progress towards satisfaction
calculate value in use, the estimated future cash of performance obligation for the services
rendered. The Company uses output method for
measurement of revenue from décor services /
painting and related services and royalty income as
that does not generate largely independent cash it is based on milestone reached or units delivered.
Input method is used for measurement of revenue
from processing and other service as it is directly
value less cost to sell is the best estimate of the linked to the expense incurred by the Company.
amount obtainable from the sale of an asset in an

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Asian Paints Limited

Notes to the Financial Statements (Contd.)

Advance from customers is recognized under other In determining the cost of raw materials,
liabilities and released to revenue on satisfaction packing materials, stock-in-trade, stores, spares,
of performance obligation. components and consumables, weighted average
cost method is used. Cost of inventory comprises all
g) Government grants and subsidies costs of purchase, duties, taxes (other than those
Recognition and Measurement: subsequently recoverable from tax authorities) and
The Company is entitled to subsidies from all other costs incurred in bringing the inventory to
government in respect of manufacturing units their present location and condition.

are measured at amounts receivable from the

includes the cost of raw materials, packing
government which are non-refundable and are
recognized as income when there is a reasonable
variable production overheads, excise duty as
assurance that the Company will comply with all
applicable and other costs incurred in bringing the
necessary conditions attached to them. Income
inventories to their present location and condition.
from subsidies is recognized on a systematic basis
Fixed production overheads are allocated on the
over the periods in which the related costs that
basis of normal capacity of production facilities.
are intended to be compensated by such subsidies
are recognized.
i) Financial Instruments
The Company has received refundable government
loans at below-market rate of interest which are
accounted in accordance with the recognition and liability or equity instrument of another entity.
measurement principles of Ind AS 109, Financial
Financial assets
Initial recognition and measurement:
the initial carrying value of loan determined in
Balance Sheet when it becomes party to the
accordance with Ind AS 109 and the proceeds
contractual provisions of the instrument. All
received. It is recognized as income when there
is a reasonable assurance that the Company will
comply with all necessary conditions attached to
costs that are attributable to the acquisition of the
on a systematic basis over the period in which the
related costs that are intended to be compensated
by such grants are recognized
Presentation:
Income from the above grants and subsidies are
transaction price is recognized as a gain or loss in the

if the fair value is determined through a quoted

h) Inventory
market price in an active market for an identical
asset (i.e. level 1 input) or through a valuation
packing materials, stores, spares, components,
technique that uses data from observable markets
consumables and stock-in-trade are carried
(i.e. level 2 input).
at the lower of cost and net realizable value.
However, materials and other items held for In case the fair value is not determined using a
use in production of inventories are not written level 1 or level 2 input as mentioned above, the

they will be incorporated are expected to be sold price is deferred appropriately and recognized as a
at or above cost. The comparison of cost and net
realizable value is made on an item-by item basis. to the extent that such gain or loss arises due to a
Net realizable value is the estimated selling price change in factor that market participants take into
in the ordinary course of business less estimated
cost of completion and estimated costs necessary
However, trade receivables that do not contain a
to make the sale.
transaction price.

202 Annual Report 2020-21

 Financial Statements

Subsequent measurement: ii. Financial assets measured at FVTOCI:

For subsequent measurement, the Company
the following conditions are met:
below criteria:
a) The Company’s business model objective
i. The Company’s business model for managing

are solely payments of principal and interest

on the principal amount outstanding.
i. Financial assets measured at amortized cost
This category applies to certain investments in debt
ii. Financial assets measured at fair value through instruments (Refer note 29 for further details).

fair value at each reporting date. Fair value changes

iii. Financial assets measured at fair value

i. Financial assets measured at amortized cost: income and impairment losses and its reversals in

if both the following conditions are met:

a) The Company’s business model objective cumulative gain or loss previously recognized in

Further, the Company, through an irrevocable

election at initial recognition, has measured certain

are solely payments of principal and interest note 29 for further details). The Company has made
on the principal amount outstanding. such election on an instrument by instrument
basis. These equity instruments are neither held
This category applies to cash and bank balances,
for trading nor are contingent consideration
recognized under a business combination.
of the Company (Refer note 29 for further details).
Pursuant to such irrevocable election, subsequent
changes in the fair value of such equity instruments

recognizes dividend income from such instruments

cash receipts are exactly discounted to the initial
to receive payment is established, it is probable that

and the amount can be measured reliably.

the initial recognition amount and the maturity
amount is added to the initial recognition value
cumulative gain or loss previously recognized in

to arrive at the amortized cost at each reporting

transfer such cumulative gain or loss into retained
earnings within equity.
interest income over the relevant period of the iii. Financial assets measured at FVTPL:

explained above. This is a residual category applied

to all other investments of the Company excluding
adjusted for loss allowance, if any.
investments in subsidiary and associate companies

Standalone 203
Asian Paints Limited

Notes to the Financial Statements (Contd.)

iii. Financial assets measured at fair value through

assets are subsequently measured at fair value
at each reporting date. Fair value changes are
In case of trade receivables and lease receivables,

Derecognition: an amount equal to lifetime ECL is measured and

recognized as loss allowance.
In case of other assets (listed as ii and iii above), the
the Company’s Balance Sheet) when any of the
following occurs:
initial recognition. If the credit risk of such assets

12-month ECL is measured and recognized as loss

allowance. However, if credit risk has increased
ii. The Company transfers its contractual rights
measured and recognized as loss allowance.
has substantially transferred all the risks and

asset improves such that there is no longer a

iii. The Company retains the contractual rights to
recognition, the Company reverts to recognizing
impairment loss allowance based on 12-month ECL.
material delay to one or more recipients
under a ‘pass-through’ arrangement (thereby
substantially transferring all the risks and

entity expects to receive (i.e., all cash shortfalls),

iv. The Company neither transfers nor retains
substantially all risk and rewards of ownership
and does not retain control over the Lifetime ECL are the expected credit losses
resulting from all possible default events over the
In cases where Company has neither transferred
are a portion of the lifetime ECL which result from
nor retained substantially all of the risks and
default events that are possible within 12 months
from the reporting date.

unbiased and probability weighted amounts

asset. In that case, the Company also recognizes determined by a range of outcomes, taking into
account the time value of money and other
the associated liability are measured on a basis reasonable information available as a result of past
events, current conditions and forecasts of future
Company has retained. economic conditions.
As a practical expedient, the Company uses a
provision matrix to measure lifetime ECL on its
portfolio of trade receivables. The provision matrix
carrying amount and the consideration received is is prepared based on historically observed default
rates over the expected life of trade receivables
and is adjusted for forward-looking estimates.
At each reporting date, the historically observed
The Company applies expected credit losses (ECL)
default rates and changes in the forward-looking
model for measurement and recognition of loss
estimates are updated.
allowance on the following:
ECL impairment loss allowance (or reversal)
i. Trade receivables and lease receivables
recognized during the period is recognized as
ii. Financial assets measured at amortized
cost (other than trade receivables and
lease receivables)

204 Annual Report 2020-21

 Financial Statements

Financial Liabilities
Initial recognition and measurement:

its Balance Sheet when it becomes party to the the Derecognition of the original liability and
contractual provisions of the instrument. All

liability derecognised and the consideration paid is

(FVTPL), transaction costs that are attributable to

accounting

contracts in the nature of forward currency

contracts with external parties to hedge its
transaction price is recognized as a gain or loss in the
foreign currency risks relating to foreign currency
if the fair value is determined through a quoted
amortized cost. The Company formally establishes a
market price in an active market for an identical
hedge relationship between such forward currency
asset (i.e. level 1 input) or through a valuation
contracts (‘hedging instrument’) and recognized
technique that uses data from observable markets
(i.e. level 2 input).
formal documentation at the inception of the
In case the fair value is not determined using a hedge relationship in line with the Company’s risk
level 1 or level 2 input as mentioned above, the management objective and strategy.
The hedge relationship so designated is accounted
price is deferred appropriately and recognized as a
for in accordance with the accounting principles
prescribed for a fair value hedge under Ind AS 109,
to the extent that such gain or loss arises due to a
Financial Instruments.
change in factor that market participants take into
Recognition and measurement of fair value
hedge:
Subsequent measurement:
Hedging instrument is initially recognized at fair
value on the date on which a derivative contract
subsequently measured at amortized cost using
is entered into and is subsequently measured
further details).
arising from changes in the fair value of hedging
instrument is recognized in the Statement of
cash payments are exactly discounted to the initial

value as at reporting date is positive as compared

initial recognition amount and the maturity amount value as at reporting date is negative as compared
is added to the initial recognition value (net of to carrying value.

recognized at fair value on the date of entering

to arrive at the amortized cost at each reporting
into contractual obligation and is subsequently
measured at amortized cost. The hedging gain or
loss on the hedged item is adjusted to the carrying
as interest expense over the relevant period of

Derecognition:
Derecognition:
obligation under the liability is discharged or
unamortized fair value of the hedging instrument
adjusted to the hedged item, is recognized in the
liability is replaced by another from the same lender

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Asian Paints Limited

Notes to the Financial Statements (Contd.)

k) Fair Value currencies entered into by the Company are

recorded in the functional currency (i.e. Indian
at fair value in accordance with the accounting Rupees), by applying to the foreign currency
policies mentioned above. Fair value is the price amount, the spot exchange rate between the
that would be received to sell an asset or paid functional currency and the foreign currency at
to transfer a liability in an orderly transaction
between market participants at the measurement arising on foreign exchange transactions settled
date. The fair value measurement is based on the during the year are recognized in the Statement of
presumption that the transaction to sell the asset
or transfer the liability takes place either:
Measurement of foreign currency items at
reporting date:
or liability, or Foreign currency monetary items of the Company
are translated at the closing exchange rates. Non-
monetary items that are measured at historical
the most advantageous market for the
cost in a foreign currency, are translated using the
asset or liability.
exchange rate at the date of the transaction. Non-
All assets and liabilities for which fair value is monetary items that are measured at fair value in a
measured or disclosed in the Financial Statements foreign currency, are translated using the exchange
are categorized within the fair value hierarchy rates at the date when the fair value is measured.
that categorizes into three levels, described as
follows, the inputs to valuation techniques used to
translations are recognized in the Statement of
measure value. The fair value hierarchy gives the
highest priority to quoted prices in active markets
for identical assets or liabilities (Level 1 inputs)
n) Income Taxes
and the lowest priority to unobservable inputs
Tax expense is the aggregate amount included in
(Level 3 inputs).
Level 1 — quoted (unadjusted) market prices in respect of current tax and deferred tax.
active markets for identical assets or liabilities
Current tax:
Level 2 — inputs other than quoted prices included Current tax is the amount of income taxes payable
within Level 1 that are observable for the asset or
liability, either directly or indirectly
Level 3 — inputs that are unobservable for the
of income or expense that are taxable or deductible
asset or liability.
in other years and items that are never taxable or
For assets and liabilities that are recognized in the deductible under the Income Tax Act, 1961.
Financial Statements at fair value on a recurring
Current tax is measured using tax rates that have
basis, the Company determines whether transfers
been enacted by the end of reporting period for
have occurred between levels in the hierarchy by
the amounts expected to be recovered from or
re-assessing categorization at the end of each
paid to the taxation authorities.
reporting period and discloses the same.
Deferred tax:
l) Investment in subsidiary and associate Deferred tax is recognized on temporary
Companies
The Company has elected to recognize its and liabilities in the Financial Statements and the
investments in subsidiary and associate companies corresponding tax bases used in the computation
at cost in accordance with the option available
in Ind AS 27, ‘Separate Financial Statements’. The
Deferred tax liabilities are generally recognized for
Impairment policy applicable on such investments
is explained in note 1.3(e) above.
recognition of assets or liabilities in a transaction
m) Foreign Currency Translation
Initial Recognition:

206 Annual Report 2020-21

 Financial Statements

arise from initial recognition of goodwill, deferred provisions are discounted using a current pre-
tax liabilities are not recognized.
Deferred tax assets are generally recognized for
the increase in the provision due to the passage of

against which those deductible temporary A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation

assets or liabilities in a transaction (other than

amount of such obligation cannot be measured
reliably. When there is a possible obligation or a
tax assets are not recognized. present obligation in respect of which likelihood of
The carrying amount of deferred tax assets is
is remote, no provision or disclosure is made.
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
p) Measurement of EBITDA
The Company has opted to present earnings
tax assets to be utilized.
and amortization (EBITDA) as a separate line item
Deferred tax assets and liabilities are measured
at the tax rates that have been enacted or the period. The Company measures EBITDA based
substantively enacted by the Balance Sheet date
and are expected to apply to taxable income in
q) Cash and Cash Equivalents
expected to be recovered or settled. Cash and cash equivalents for the purpose of Cash
Flow Statement comprise cash and cheques in
Presentation of current and deferred tax:
hand, bank balances, demand deposits with banks
Current and deferred tax are recognized as income
where the original maturity is three months or less
and other short term highly liquid investments net
except when they relate to items that are recognized
of bank overdrafts which are repayable on demand
as these form an integral part of the Company’s
the current and deferred tax income/expense are
cash management.

tax liabilities, where it has a legally enforceable

it intends either to settle on a net basis, or to realize

the asset and settle the liability simultaneously.
In case of deferred tax assets and deferred tax recognized in the period in which the employee
renders the related service. The Company
recognizes the undiscounted amount of short term
current tax assets against current tax liabilities and
the deferred tax assets and deferred tax liabilities for services rendered as a liability (accrued expense)
relate to income taxes levied by the same tax after deducting any amount already paid.
authority on the Company.

o) Provisions and Contingencies

The Company recognizes provisions when a present
obligation (legal or constructive) as a result of a
administered pension fund scheme for all
applicable employees and superannuation
required to settle such obligation and the amount scheme for eligible employees.
of such obligation can be reliably estimated.
contribution plans:

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Asian Paints Limited

Notes to the Financial Statements (Contd.)

The Company recognizes contribution Recognition and measurement of

when the employees render services to the

determined using the Projected Unit Credit
Company during the reporting period. If the
method with actuarial valuations being
contributions payable for services received
carried out at each reporting date. The
from employees before the reporting date
exceeds the contributions already paid, the
Balance Sheet represent the present value of
deducting the contribution already paid. If
by the fair value of plan assets, if applicable.
the contribution already paid exceeds the
contribution due for services received before
the reporting date, the excess is recognized
calculation) is recognized representing
as an asset to the extent that the prepayment
the present value of available refunds and
will lead to, for example, a reduction in future
reductions in future contributions to the plan.
payments or a cash refund.
All expenses represented by current service
cost, past service cost, if any, and net interest
i) Provident fund scheme:

contributions towards Employee

liability (asset) comprising actuarial gains
Provident Fund scheme to a separate
and losses and the return on the plan assets
trust administered by the Company. The
(excluding amounts included in net interest
minimum interest payable by the trust to

has an obligation to make good the

shortfall, if any, between the return
subsequent periods.
on investments of the trust and the
The Company presents the above liability/
(asset) as current and non-current in the
Balance Sheet as per actuarial valuation
by the independent actuary; however, the
entire liability towards gratuity is considered
The Company contributes to a separate as current as the Company will contribute
entity (a fund), towards meeting the this amount to the gratuity fund within the
next twelve months.
iii) Pension Scheme:
Entitlements to annual leave and sick
leave are recognized when they accrue to
employees. Sick leave can only be availed
employees and is payable upon the
while annual leave can either be availed
employee satisfying certain conditions,
or encashed subject to a restriction on the
as approved by the Board of Directors.
maximum number of accumulation of leave.
The Company determines the liability for
such accumulated leaves using the Projected

valuations being carried out at each Balance

Sheet date. Expenses related to other long
payable upon the employee satisfying
certain conditions.
actuarial gain and loss).

208 Annual Report 2020-21

 Financial Statements

s) Lease accounting payments that depend on an index or a rate known

Assets taken on lease: at the commencement date; and extension option
The Company mainly has lease arrangements for payments or purchase options payment which the
Company is reasonable certain to exercise.
and retail stores and vehicles.
Variable lease payments that do not depend on an
The Company assesses whether a contract is or index or rate are not included in the measurement
contains a lease, at inception of a contract. The
assessment involves the exercise of judgement payments are recognised as an expense in the
about whether (i) the contract involves the period in which the event or condition that triggers
those payments occurs and are included in the line

use of the asset through the period of the lease,

After the commencement date, the amount of
and (iii) the Company has the right to direct the
use of the asset.
of interest and reduced for the lease payments
The Company recognises a right-of-use asset made and remeasured (with a corresponding

is a change in future lease payments in case of

is initially recognised at cost, which comprises renegotiation, changes of an index or rate or in
the initial amount of the lease liability adjusted case of reassessment of options.
for any lease payments made at or before the
Short-term leases and leases of low-value
commencement date, plus any initial direct costs
assets
incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
assets and lease liabilities for short term leases
underlying asset or the site on which it is located,
as well as low value assets and recognizes the
less any lease incentives. They are subsequently
lease payments associated with these leases as an
measured at cost less accumulated depreciation
expense on a straight-line basis over the lease term.
and impairment losses.
t) Research and Development
line method from the commencement date to Expenditure on research is recognized as an
the earlier of, the end of the useful life of the expense when it is incurred. Expenditure on
development which does not meet the criteria for
transfers ownership of the underlying asset or the recognition as an intangible asset is recognized as
an expense when it is incurred.
expects to exercise a purchase option, the related
Items of property, plant and equipment and
acquired intangible assets utilized for research and
the underlying asset. The estimated useful lives
development are capitalized and depreciated in
accordance with the policies stated for Property,
as those of property and equipment. In addition,
plant and equipment and Intangible Assets.
the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain
u) Borrowing Cost
re-measurements of the lease liability.
Borrowing cost includes interest, amortization
The lease liability is initially measured at the of ancillary costs incurred in connection with
present value of the lease payments that are not the arrangement of borrowings and exchange
paid at the commencement date, discounted using
the interest rate implicit in the lease or, if that borrowings to the extent they are regarded as an
rate cannot be readily determined, the Company adjustment to the interest cost.
Borrowing costs, if any, directly attributable to
the Company, term and currency of the contract.
the acquisition, construction or production of an
asset that necessarily takes a substantial period of
borrowing rate as the discount rate.
time to get ready for its intended use or sale are
Lease payments included in the measurement of the capitalized, if any. All other borrowing costs are
expensed in the period in which they occur.

Standalone 209
Asian Paints Limited

Notes to the Financial Statements (Contd.)

v) Segment Reporting including amount expected to be paid/recovered

for uncertain tax positions (Refer note 18).
consistent with the internal reporting provided to
b) Business combinations and intangible assets
Business combinations are accounted for using
IND AS 103, Business Combinations. IND AS 103
resources and assessing performance of the
operating segments of the Company.
contingent consideration to be fair valued in order
w) Events after reporting date
liabilities and contingent liabilities of the acquiree.
Where events occurring after the Balance Sheet
date provide evidence of conditions that existed at
determining the value of contingent consideration
the end of the reporting period, the impact of such
and intangible assets. These valuations are
events is adjusted within the Financial Statements.
conducted by independent valuation experts.
material size or nature are only disclosed. c) Property, plant and equipment
Property, plant and equipment represent a
x) Non-current Assets held for sale
Company. The charge in respect of periodic
for sale if their carrying amounts will be recovered depreciation is derived after determining an
principally through a sale rather than through estimate of an asset’s expected useful life and the
continuing use of the assets and actions required expected residual value at the end of its life. The
to complete such sale indicate that it is unlikely useful lives and residual values of Company’s assets
are determined by the management at the time
made or that the decision to sell will be withdrawn. the asset is acquired and reviewed periodically,

if the management expects to complete the sale based on historical experience with similar assets
as well as anticipation of future events, which may
impact their life, such as changes in technical or
commercial obsolescence arising from changes
measured at the lower of their carrying amount
or improvements in production or from a change
and the fair value less cost to sell. Non-current
in market demand of the product or service
assets are not depreciated or amortized.
output of the asset.
1.4. Key accounting estimates and judgements
d) Impairment of Goodwill
The preparation of the Company’s Financial Statements
requires the management to make judgements, basis and whenever there is an indication that the
recoverable amount of a cash generating unit is
amounts of revenues, expenses, assets and liabilities, less than its carrying amount based on a number
and the accompanying disclosures, and the disclosure of factors including operating results, business
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes The recoverable amount of cash generating
that require a material adjustment to the carrying units is determined based on higher of value-in-
use and fair value less cost to sell. The goodwill
impairment test is performed at the level of the
Critical accounting estimates and assumptions
cash-generating unit or groups of cash-generating
The key assumptions concerning the future and
other key sources of estimation uncertainty at the the acquisition and which represents the lowest
level at which goodwill is monitored for internal
a material adjustment to the carrying amounts of management purposes.
Market related information and estimates are
described below:
used to determine the recoverable amount. Key
a) Income taxes assumptions on which management has based
its determination of recoverable amount include
judgements are involved in estimating budgeted estimated long term growth rates, weighted
average cost of capital and estimated operating
determining the provision for income taxes,

210 Annual Report 2020-21

 Financial Statements

past experience and represent management’s best valuation techniques, including the discounted
estimate about future developments.
and assumptions.
The costs of providing pensions and other g) Right-of-use assets and lease liability
The Company has exercised judgement in
determining the lease term as the non-cancellable
term of the lease, together with the impact of
options to extend or terminate the lease if it is
employees’ services. The costs are assessed on the reasonably certain to be exercised.
basis of assumptions selected by the management.
Where the rate implicit in the lease is not readily
These assumptions include salary escalation rate,
available, an incremental borrowing rate is applied.
discount rates, expected rate of return on assets
and mortality rates. The same is disclosed in Note
of interest that the lessee would have to pay to
borrow over a similar term, with a similar security,
the funds necessary to obtain an asset of a similar
nature and value to the right-of-use asset in a similar
economic environment. Determination of the
cannot be measured based on quoted prices in incremental borrowing rate requires estimation.
active markets, their fair value is measured using

Standalone 211
 NOTE 2A : PROPERTY, PLANT AND EQUIPMENT

212
( in Crores)
Net carrying
Gross carrying value Depreciation/Amortisation
value
Additions Additions
As at Deductions / As at As at Deductions / As at As at
during the during the
01.04.2020 Adjustments 31.03.2021 01.04.2020 Adjustments 31.03.2021 31.03.2021
year year
Asian Paints Limited

Freehold Land 180.13 0.20 - 180.33 - - - - 180.33

Buildings 2.51 1,360.71 160.67 62.83 1.16 222.34 1,138.37
Plant and Equipment 128.55 3.25 3,867.73 1,191.10 2.61 1,565.95 2,301.78

Annual Report 2020-21

Buildings 71.28 - - 71.28 9.56 - 12.30 58.98
Equipment 69.93 1.60 71.39 32.28 8.27 40.41 30.98
Leasehold Improvements 0.27 - - 0.27 0.02 0.03 - 0.05 0.22
Furniture and Fixtures 66.99 0.19 72.25 32.62 8.59 0.16 41.05 31.20
Vehicles 2.96 0.08 - 3.04 1.10 - 1.64 1.40
67.62 5.82 2.57 70.87 46.47 24.40
Leasehold improvements 8.92 - - 8.92 6.86 - 8.31 0.61
Information Technology Hardware 169.66 11.11 5.86 174.91 112.68 25.37 5.81 132.24 42.67
Total 5,733.93 162.29 14.52 5,881.70 1,585.33 497.77 12.34 2,070.76 3,810.94

( in Crores)
Net carrying
Gross carrying value Depreciation/Amortisation
value
Notes to the Financial Statements (Contd.)

Additions Additions
As at Deductions / As at As at Deductions / As at As at
during the during the
01.04.2019 Adjustments 31.03.2020 01.04.2019 Adjustments 31.03.2020 31.03.2020
year year
Freehold Land 171.70 - 180.13 - - - - 180.13
Buildings 1,333.73 21.71 1.70 112.96 0.27 160.67 1,193.07
Plant and Equipment 3,599.20 15.61 3.38 1,191.10 2,551.33

Buildings 71.28 - - 71.28 6.83 2.73 - 9.56 61.72

Equipment 66.12 3.82 0.01 69.93 23.86 0.01 32.28 37.65
Leasehold Improvements - 0.27 - 0.27 - 0.02 - 0.02 0.25
Furniture and Fixtures 62.71 0.36 66.99 0.27 32.62
Vehicles 1.61 1.35 - 2.96 0.71 0.39 - 1.10 1.86
55.03 13.23 67.62 29.12 9.86 29.18
Leasehold improvements 9.37 - 8.92 5.39 1.92 6.86 2.06
Information Technology Hardware 8.68 0.50 169.66 82.69 112.68 56.98
Total 5,532.23 220.97 19.27 5,733.93 1,101.61 489.12 5.40 1,585.33 4,148.60

The amount of contractual commitments for the acquisition of property, plant and equipment is disclosed in Note 31 (b).
 NOTE 2B : RIGHT OF USE ASSETS
( in Crores)
Movement in net carrying amount 2020-21 2019-20
Leasehold Building Vehicles Total Leasehold Building Vehicles Total
Land Land
Net Carrying Amount
Balance at 1st April 726.63 2.70 700.61
Additions - 185.16 0.19 229.19 1.15 230.53
Depreciation 1.79 0.86 175.89 1.79 169.81 173.03
Deletions - 20.68 21.11 - 31.30 0.18
Balance at 31st March 146.56 566.87 1.36 714.79 148.35 576.04 2.24 726.63

Standalone
Financial Statements

213
214
( in Crores)
Net carrying
Gross carrying value Amortisation
value
Additions Additions
As at Deductions / As at As at Deductions / As at As at
during the during the
01.04.2020 Adjustments 31.03.2021 01.04.2020 Adjustments 31.03.2021 31.03.2021
year year
Asian Paints Limited

A. GOODWILL
35.36 - - 35.36 - - - - 35.36
Total (A) 35.36 - - 35.36 - - - - 35.36

Annual Report 2020-21

B. OTHER INTANGIBLE ASSETS
Trademark - 1.39 0.02 - 0.96 0.43
Computer Software 0.08 129.21 23.78 0.07 152.92 41.08

Computer Software 0.16 0.01 - 0.17 0.15 0.01 - 0.16 0.01

Total (B) 180.57 15.07 0.08 195.56 130.30 23.81 0.07 154.04 41.52

Total (A+B) 215.93 15.07 0.08 230.92 130.30 23.81 0.07 154.04 76.88

( in Crores)
Net carrying
Gross carrying value Amortisation
value
As at Additions Deductions / As at As at Additions Deductions / As at As at
01.04.2019 during the Adjustments 31.03.2020 01.04.2019 during the Adjustments 31.03.2020 31.03.2020
Notes to the Financial Statements (Contd.)

year year
A. GOODWILL
35.36 - - 35.36 - - - - 35.36
Total (A) 35.36 - - 35.36 - - - - 35.36

B. OTHER INTANGIBLE ASSETS

Trademark - - 0.76 0.18 - -
Computer Software 156.00 - 101.59 27.62 - 129.21 50.26

Computer Software 0.15 0.01 - 0.16 0.13 0.02 - 0.15 0.01

Total (B) 157.09 23.48 - 180.57 102.48 27.82 - 130.30 50.27

Total (A+B) 192.45 23.48 - 215.93 102.48 27.82 - 130.30 85.63

The amount of contractual commitments for the acquisition of intangible assets is disclosed in Note 31 (b).
 Financial Statements

Contd.)
Note:
Allocation of Goodwill to cash generating units

( in Crores)
As at As at
31.03.2021 31.03.2020
Bath Fittings Business 35.36 35.36

as the Company believes this to be the most appropriate timescale for reviewing and considering annual performance before

As at 31st March 2021 and 31st March 2020, goodwill in respect of Bath Fittings Business was not impaired.
Key Assumptions used for value in use calculations are as follows:

As at As at
31.03.2021 31.03.2020
25% 26%
4%

Discount rate 12.25% 12.25%

Discount rates -

Company and its operating segments and is derived from its weighted average cost of capital (WACC).
Growth rates - The growth rates are based on industry growth forecasts. Management determines the budgeted growth
rates based on past performance and its expectations on market development. The weighted average growth rates used were
consistent with industry reports.

Standalone 215
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 4 : INVESTMENTS
( in Crores)

Face Non-Current Current

Nos. value As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020

A. Investments in Equity Instruments

(a) Unquoted equity shares
(i) Subsidiaries (measured at cost, Refer note 1.3(i))
(a) Asian Paints Industrial Coatings Limited 10 30.45 - -
(b) Asian Paints International Private Limited 706.44 - -
(c) Asian Paints (Nepal) Private Limited NPR 10 0.12 0.12 - -
(d) Maxbhumi Developers Limited 10 15.55 15.55 - -
(3.50) (3.50) - -
12.05 12.05
(e) Sleek International Private Limited 10 249.61 - -
(95.00) (95.00) - -
154.61 154.61 - -
10 30.47 - -
(g) Reno Chemicals Pharmaceuticals And 100 161.42 - -
Cosmetics Private Limited
1,095.56 1,095.56 - -
(ii) Associate (measured at cost, Refer note 1.3(i))
2,85,18,112 10 81.43 - -
81.43 81.43 - -
Investments in subsidiaries and associate (i + ii) 1,176.99 1,176.99 - -
(iii) Other equity shares measured at FVTPL 1.07 1.07 - -
Total Unquoted equity shares 1,178.06 1,178.06 - -
(b) Quoted equity shares measured at FVTOCI
Akzo Nobel India Limited 20,10,626 10 461.65 - -
Housing Development Finance Corporation Limited 2 116.16 - -
Apcotex Industries Limited 2 0.61 0.26 - -
Total Quoted equity shares 578.42 521.16 - -
Total Investments in Equity Instruments other than A 579.49 522.23 - -
Investments in subsidiaries and associate (a(iii) + b)
B. Investments in Unquoted Government securities B * * - -
measured at amortised cost
*’[ 39,500/- (As at 31st March, 2020 -
C. Investments in Quoted Debentures or Bonds 81.35 106.77 28.33 0.50
measured at FVTOCI
Amount included under the head “ Current Investments “ - - (28.33) (0.50)
Total Investments in Debentures or Bonds - Quoted C 81.35 106.77 - -
D. Investments in Quoted Mutual Funds measured at FVTPL 324.11 130.17
Amount included under the head “Current Investments“ - - (130.17)
Total Investments in Mutual Funds - Quoted D 324.11 419.59 - -
Total Non-Current Investments (A+B+C+D) 984.95 1,048.59 - -
(other than Investments in subsidiaries and associate)
Aggregate amount of quoted investments - At cost 375.70 506.82 - -
Aggregate amount of quoted investments - At market value 983.88 1,047.52 - -
Aggregate amount of unquoted investments 1,178.06 1,178.06 - -
Aggregate amount of impairment in value of investments 98.50 98.50 - -

216 Annual Report 2020-21

 Financial Statements

Contd.)
( in Crores)
Face Non-Current Current
Nos. value As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
II. CURRENT INVESTMENTS
A. Investments in Quoted Debentures or Bonds
measured at FVTOCI
Current Portion of Long Term Investments (Refer A - - 28.33 0.50

B. Investments in Quoted Mutual Funds measured at FVTPL

i. Current Portion of Long Term Investments - - 130.17

ii. Investments in Liquid Mutual Funds - - 3,020.31 356.97

Total Investments in Mutual Funds - Quoted (i+ii) B - - 3,150.48 431.85
Total Current Investments (A+B) - - 3,178.81 432.35
Aggregate amount of quoted investments - At cost - - 3,119.32 380.69
Aggregate amount of quoted investments - At market value - - 3,178.81 432.35

NOTE 5 : LOANS
( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
UNSECURED AND CONSIDERED GOOD
(a) Sundry deposits 57.02 14.77 13.38
(b) Loan to a related party
Loan to Reno Chemicals Pharmaceuticals and Cosmetics - - 9.78 7.93
Private Limited (‘Reno’) (wholly owned subsidiary) (Refer

Total 57.02 64.11 24.55 21.31

NOTE 6 : OTHER FINANCIAL ASSETS

( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
- - 62.98 59.30
Less: Allowance for doubtful debts and advances - - (4.13) -
58.85 59.30
- - 21.04 15.80
Less: Allowance for doubtful debts and advances - - (2.75) (1.27)
- - 18.29 14.53
- - 0.79 2.10
Subsidy receivable from state government 521.56 232.39 18.08
Term deposits held as margin money against bank guarantee 0.07 0.08 - -
and other commitments
Bank deposits with more than 12 months of original maturity - - 913.85
Interest accrued on investments in debentures or bonds - - 3.99

Quantity discount receivable - - 221.14

Forward exchange contract (net) - - 0.88 -
Retention monies receivable from Customers 0.54 - 1.63 -
Total 522.17 232.47 1,237.50 846.96

Standalone 217
Asian Paints Limited

Notes to the Financial Statements (Contd.)

( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
Advance payment of income tax (net) 132.84 - -
Total 132.84 137.94 - -

NOTE 8 : OTHER ASSETS

( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
(a) Capital advances 13.91 8.26 - -
(b) Advances other than capital advances
i) Advances/claims recoverable in cash or in kind 25.53 93.31 111.03
ii) Balances with government authorities - - 342.47 91.97
iii) Advances to employees - - 3.08
iv) Duty credit entitlement - - 1.05 1.26
- - 6.50
Total 39.44 32.87 446.41 212.33

( in Crores)
As at As at
31.03.2021 31.03.2020
(a) Raw materials 812.62
Raw materials-in-transit 225.46
1,038.08 864.26
(b) Packing materials 68.86
Packing materials-in-transit - 0.09
68.86 46.89
(c) Work-in-progress 120.57 81.67
(d) Finished goods 1,406.75
Finished goods-in-transit 0.71 2.78
1,407.46 1,345.36
(e) Stock-in-trade (acquired for trading) 318.98 333.88
Stock-in-trade (acquired for trading) in-transit 41.12 36.52
360.10 370.40
(f) Stores, spares and consumables 129.00 118.67
Stores, spares and consumables-in-transit 0.54 0.22
129.54 118.89
Total 3,124.61 2,827.47

The cost of inventories recognised as an expense includes 30.90 crores) in respect of write down
of inventory to net realisable value. There has been no reversal of such write down in current and previous years.

218 Annual Report 2020-21

 Financial Statements

NOTE 10 : TRADE RECEIVABLES

( in Crores)
Current
As at As at
31.03.2021 31.03.2020
Trade receivables
(a) Unsecured, considered good 1,809.75 1,109.22
(b) Unsecured, considered doubtful 58.19 35.90
1,867.94 1,145.12
Less: Allowance for unsecured doubtful debts (58.19) (35.90)
Total 1,809.75 1,109.22

NOTE 11 : CASH AND BANK BALANCES

( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020

(a) Balances with Banks

(i) Current Accounts - - 81.62 131.32
(ii) Cash Credit Account ## - - 12.27 205.60
(b) Cheques, drafts on hand - - 19.36 -
(c) Cash on hand - - 0.02
Total - - 113.27 336.96

(i) Term deposits with original maturity for more than - - - 16.63
3 months but less than 12 months
(ii) Unpaid dividend and sales proceeds of Fractional - - 21.64
Bonus Shares account *
(iii) Term deposits held as margin money against bank 0.07 0.08 - -
guarantee and other commitments
0.07 0.08 21.64 39.10
(0.07) (0.08) - -
Total - - 21.64 39.10

##
Secured by hypothecation of inventories and trade receivables and carries interest rate @ 7.05% p.a (as at 31 st March, 2020 the rate was 8.10% p.a.)

* The Company can utilise these balances only towards settlement of unclaimed dividend and fractional bonus shares.

Standalone 219
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 12 : EQUITY SHARE CAPITAL

( in Crores)
As at As at
31.03.2021 31.03.2020
Authorised
99,50,00,000 Equity Shares of 1 each 99.50 99.50
50,000 11% Redeemable Cumulative Preference shares of 100 each 0.50 0.50
100.00 100.00
Issued, Subscribed and Paid up capital
95,91,97,790 Equity Shares of 1 each fully paid 95.92 95.92
95.92 95.92

a) Reconciliation of shares outstanding at the beginning and at the end of the year

As at 31.03.2021 As at 31.03.2020
Fully paid Equity Shares
No. of Shares No. of Shares
At the beginning of the year 95,91,97,790 95.92 95,91,97,790 95.92
Add: Issued during the year - - - -
At the end of the year 95,91,97,790 95.92 95,91,97,790 95.92
b) Terms/rights attached to equity shares
The Company has only one class of shares referred to as equity shares having a par value of 1 per share. Each holder
of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Payment

c) Details of Shareholders holding more than 5% equity shares in the Company @

As at 31.03.2021 As at 31.03.2020
Name of the Shareholders No of Equity Percentage No of Equity Percentage
Shares holding Shares holding
Fully paid Equity Shares of 1 each held by:
1. Sattva Holding and Trading Private Limited 5,63,88,682 5.88 5,63,88,682 5.88
2. Smiti Holding and Trading Company Private Limited 5,53,39,068 5.77 5.72
@
As per the records of the Company, including its register of members.

As per the Companies Act, 2013, the holders of equity shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts in the event of liquidation of the Company. However no such preferential
amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
The Board of Directors, at their meetings held on 22nd
th

st
March 2021. If approved, the total dividend (interim

previous year).

220 Annual Report 2020-21

 Financial Statements

NOTE 13 : OTHER EQUITY

( in Crores)
Reserves and Surplus
Debt Equity
Capital instruments instruments Total
Capital General Retained
Redemption through OCI through OCI
Reserve Reserve earnings
Reserve
Balance as at 1st April, 2019 (A) 44.38 0.50 4,166.74 4,424.53 (0.01) 110.90 8,747.04
Additions during the year;
- - - 2,653.95 - - 2,653.95

- - - (9.82) - - (9.82)
Net fair value gain on investments in equity instruments - - - - - 57.73 57.73

Net fair value gain on investments in debt instruments - - - - -

Total Comprehensive Income for the year 2019-20 (B) - - - 2,644.13 2.49 57.73 2,704.35
Reductions during the year;
Dividends (Refer note 30) - - - - -
Income tax on dividend (Refer note 30) - - - (353.07) - - (353.07)
Total (C) - - - (2,094.02) - - (2,094.02)
Balance as at 31st March, 2020 (D) = (A+B+C) 44.38 0.50 4,166.74 4,974.64 2.48 168.63 9,357.37
Additions during the year:
- - - 3,052.51 - - 3,052.51

- - - (3.98) - - (3.98)
Net fair value gain on investments in equity instruments - - - - - 52.38 52.38

Net fair value gain on investments in debt instruments - - - - 2.13 - 2.13

Total Comprehensive Income for the year 2020-21 (E) - - - 3,048.53 2.13 52.38 3,103.04
Reductions during the year:
Dividends (Refer note 30) - - - (465.23) - - (465.23)
Total (F) - - - (465.23) - - (465.23)
Balance as at 31st March, 2021 (D+E+F) 44.38 0.50 4,166.74 7,557.94 4.61 221.01 11,995.18

Description of nature and purpose of each reserve

General Reserve

of other comprehensive income.

Capital Reserve -

subsidiary of the Company, with the Company as per the order passed by the National Company Law Tribunal.
Capital Redemption Reserve

Debt instruments through other comprehensive income - This represents the cumulative gains and losses arising on the
revaluation of debt instruments measured at fair value through other comprehensive income that have been recognized in

losses on such instruments.

Equity instruments through other comprehensive income - This represents the cumulative gains and losses arising on the
revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option,

Standalone 221
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 14 : BORROWINGS*
( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
Secured
Deferred payment liabilities :
Loan from State of Haryana ## 14.31 18.50 7.89 5.90
- - (7.89) (5.90)
(Refer note 16)
Total 14.31 18.50 - -

Notes:
##
The Company is eligible to avail interest free loan in respect of 50% of VAT paid within Haryana on the sale of goods produced at Rohtak plant for a

free loan and is recognised as deferred income (Refer note 19).

This loan is secured by way of a bank guarantee issued by the Company and is repayable after a period of 5 years from the date of receipt of interest free
loan. For the year ended 31st March, 2016 and 31st
st

* Default in terms of repayment of principal and interest - NIL.

NOTE 15 : LEASE LIABILITIES

( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
Lease liabilities 468.73 157.22
Total 468.73 496.22 157.22 142.43

The maturity analysis of lease liabilities is disclosed in Note 29(C)(3).

NOTE 16 : OTHER FINANCIAL LIABILITIES

( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
(a) Current maturities of Long-term debt - - 7.89 5.90
(b) Investor Education and Protection Fund #
Unpaid/Unclaimed dividend - - 21.64
(c) Others
Retention monies relating to capital expenditure 1.09 19.08
Payable towards capital expenditure - - 34.92
Payable towards services received - - 421.23 222.65
Payable towards stores, spares and consumables - - 15.69 13.33
Payable to employees - - 195.56 153.07

31st
Payable towards other expenses - - 568.47 621.15

(as at 31st
Forward exchange contract (Net) - - - 0.15
1.09 0.46 1,254.95 1,090.52
Total 1.09 0.46 1,284.48 1,118.89
#
Investor Education and Protection Fund (‘IEPF’) - As at 31st March, 2021, there is no amount due and outstanding to be transferred to the IEPF by the
Company. Unclaimed Dividend, if any, shall be transferred to IEPF as and when they become due.

222 Annual Report 2020-21

 Financial Statements

NOTE 17 : PROVISIONS
( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
(Refer note 37)
Provision for Compensated absences 156.23 131.96 19.22 15.59
- - 21.98 10.37
Provision for Pension 1.29 1.23 0.34 0.35
5.99 3.59 1.65 1.18
163.51 136.78 43.19 27.49
(b) Others (Refer note 32)
Provision for Excise - - 2.24
Provision for Central Sales Tax / VAT - - 12.48
- - 14.72 16.65
Total 163.51 136.78 57.91 44.14

NOTE 18 : INCOME TAXES

( in Crores)
Year Year
2020-21 2019-20
A. THE MAJOR COMPONENTS OF INCOME TAX EXPENSE FOR THE YEAR ARE AS UNDER :

Current tax:
In respect of current year 1,052.72 871.15
Adjustments in respect of previous year 6.46 5.66
Deferred tax:
In respect of current year (21.31) (117.73)
1,037.87 759.08
(ii) Income tax expense recognised in OCI
Deferred tax:
Deferred tax (expense) on net fair value gain on investments in debt instruments through (0.28) (0.32)

1.34 1.01
Deferred tax (expense) on net fair value gain on investments in equity instruments (4.88) (8.71)

Income tax (expense) recognised in OCI (3.82) (8.02)

B. RECONCILIATION OF TAX EXPENSE AND THE ACCOUNTING PROFIT FOR THE YEAR IS AS
UNDER :
4,090.38
Income tax expense calculated at 25.168% 1,029.47 858.99
19.80 25.19
(7.51)
(5.46) (8.01)
- (109.31)
(4.89) (3.99)
Total 1,031.41 753.42
Adjustments in respect of current income tax of previous year 6.46 5.66
1,037.87 759.08

Indian tax law.

Standalone 223
Asian Paints Limited

Notes to the Financial Statements (Contd.)

FOLLOWS:

As at 31st March, 2021 ( in Crores)

Balance Sheet OCI Balance Sheet
01.04.2020 2020-21 2020-21 31.03.2021
(316.33) 19.30 - (297.03)

Provision for expense allowed for tax purpose on payment basis (Net) 5.18 - 35.82
Allowance for doubtful debts and advances 0.27 (0.27) - -
Voluntary Retirement Scheme (VRS) expenditure (allowed in Income (0.43) - -
Tax Act, 1961 over 5 years)
(0.62) - (0.28) (0.90)

- 1.34 8.48
(17.19) (5.28) - (22.47)
FVTPL
(8.71) - (4.88) (13.59)
21.69 2.81 - 24.50
21.31 (3.82)
Net Deferred tax liabilities (282.68) (265.19)

As at 31st March, 2020 ( in Crores)

Balance Sheet OCI Balance Sheet
01.04.2019 2019-20 2019-20 31.03.2020
135.13 - (316.33)

Provision for expense allowed for tax purpose on payment basis (Net) (13.97) -
Allowance for doubtful debts and advances 0.38 (0.11) - 0.27
Voluntary Retirement Scheme (VRS) expenditure (allowed in Income 1.63 (1.20) -
Tax Act, 1961 over 5 years)
(0.30) - (0.32) (0.62)

6.13 - 1.01
0.15 - (17.19)
FVTPL
- - (8.71) (8.71)
23.96 (2.27) - 21.69
117.73 (8.02)
Net Deferred tax liabilities (392.39) (282.68)

The Company does not have any unused tax losses under the Income Tax Act, 1961, for which no deferred tax asset has been
recognised in the Balance Sheet.

224 Annual Report 2020-21

 Financial Statements

NOTE 19 : OTHER LIABILITIES

( in Crores)
Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
(a) Revenue received in advance
Advance received from customers - - 16.00 6.00
(b) Others
Statutory dues payable - - 140.39 62.67
Deferred income arising from government grant 3.41 1.76 2.25

Deferred revenue arising from sale of services - - 0.58 -

- - 15.00 10.00
3.41 4.64 157.73 74.92
Total 3.41 4.64 173.73 80.92

NOTE 20 : TRADE PAYABLES

( in Crores)
Current
As at As at
31.03.2021 31.03.2020
Trade Payables (including Acceptances)*
53.55
2,760.75
Total 2,814.30 1,760.08
*Acceptances include arrangements where operational suppliers of goods and services are initially paid by banks while the Company continues to

( in Crores)
Current
As at As at
31.03.2021 31.03.2020
Provision for Income Tax (net) 87.69
Total 87.69 48.59

NOTE 22A : REVENUE FROM OPERATIONS

( in Crores)
Year Year
2020-21 2019-20
Revenue from sale of products 18,252.46 17,025.26
Revenue from sale of services 27.60 0.35
236.80
Total 18,516.86 17,194.09

operating revenue” on accrual basis.

Standalone 225
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 22B : REVENUE FROM CONTRACTS WITH CUSTOMERS

( in Crores)
Year Year
2020-21 2019-20
A. REVENUE FROM CONTRACTS WITH CUSTOMERS DISAGGREGATED BASED ON NATURE
OF PRODUCT OR SERVICES
Revenue from sale of products
Paints and allied products 18,009.26 16,810.51
Bath Fittings and allied products 243.20
Revenue from sale of services
Decor & related services 27.60 0.35
Other operating revenues
Processing and service income 33.53 32.99
Scrap sales 20.83
Other Income (Refer note 23(c)(ii))
Royalty received
From subsidiaries and associate 62.07 59.88
- 0.01
Total 18,396.49 17,137.33

B. REVENUE FROM CONTRACTS WITH CUSTOMERS DISAGGREGATED BASED ON

GEOGRAPHY
Home market 18,277.74 17,008.83
Exports 118.75 128.50
Total 18,396.49 17,137.33

The Company has recognized revenue of st

March 2020: 2.61 crores) from the amounts included under advance
received from customers at the beginning of the year.

NOTE 22C : RECONCILIATION OF GROSS REVENUE WITH THE REVENUE FROM CONTRACTS WITH CUSTOMERS
( in Crores)
Year Year
2020-21 2019-20
21,520.03
Less: Discounts 3,123.54
Net Revenue recognised from Contracts with Customers 18,396.49 17,137.33

The amounts receivable from customers become due after expiry of credit period which on an average ranges around from 30

The Company provides agreed upon performance warranty for selected range of products and services. The amount of liability
towards such warranty is immaterial.
The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter
duration and sale of service contracts are measured as per output method.

226 Annual Report 2020-21

 Financial Statements

NOTE 23 : OTHER INCOME

( in Crores)
Year Year
2020-21 2019-20
(a) Interest Income
7.96
33.24
41.20 41.67

(b) Dividend Income

7.81 5.66
8.64 8.13
Dividends from mutual fund investments measured at FVTPL -
16.45 34.73
(c) Other non-operating income
(i) Insurance claims received 8.65 0.19
(ii) Royalty received
- From subsidiaries and associate 62.07 59.88
- 0.01
62.07 59.89
#
92.28 75.26
107.15
270.15 266.81
(d) Other gains and losses
Net foreign exchange gain 18.43 2.87
Net gain on sale of property, plant and equipment 18.37 10.50
1.72 0.96
38.52 14.33
Total 366.32 357.54

* Relates to investments held at the end of reporting period

#
1.89 crores (Previous year - 1.25 crores).

Standalone 227
Asian Paints Limited

Notes to the Financial Statements (Contd.)

( in Crores)
Year Year
2020-21 2019-20
Raw Materials Consumed
864.26 870.28
Add : Purchases 7,208.71 7,032.58
8,072.97 7,902.86
Less: Closing Stock 1,038.08
7,034.89 7,038.60

Packing Materials Consumed

46.89 38.33
Add : Purchases 1,511.25
1,558.14 1,440.80
Less : Closing Stock 68.86
1,489.28 1,393.91
Total Cost of Materials Consumed 8,524.17 8,432.51

1,649.06 1,283.88

Stock at the beginning of the year

1,345.36 1,219.38
Work-in-Progress 81.67 105.72
Stock-in-trade- acquired for trading (including goods in transit) 370.40 262.12
Total 1,797.43 1,587.22
Stock at the end of the year
1,407.46
Work-in-Progress 120.57 81.67
Stock-in-trade- acquired for trading (including goods in transit) 360.10
Total 1,888.13 1,797.43
Changes in Inventories of Finished Goods, Stock-in-trade and Work-in-progress (90.70) (210.21)

NOTE 25 : EMPLOYEE BENEFITS EXPENSE

( in Crores)
Year Year
2020-21 2019-20
Salaries and wages 988.40 855.86
Contribution to provident and other funds (Refer note 37) 60.13
80.13 80.77
Total 1,128.66 985.43

228 Annual Report 2020-21

 Financial Statements

NOTE 26 : OTHER EXPENSES

( in Crores)
Year Year
2020-21 2019-20
Consumption of stores, spares and consumables 52.28 53.79
Power and fuel 74.71 83.30
Processing charges* 122.76 117.60
Repairs and maintenance:
Buildings 17.50
Machinery 40.11
33.17 39.59
90.78 95.00
Rates and taxes 12.00
62.98
Commission to Non Executive Directors 4.70 3.53
Directors’ sitting fees 0.80 0.56
Auditor’s Remuneration (Refer note 33) 1.67
Freight and handling charges 1,222.27 1,088.33
Advertisement expenses 691.85 782.53
0.56 6.18
Allowance for doubtful debts and advances (net) 27.90 15.27
Insurance 21.65
Travelling expenses 36.98
Miscellaneous expenses^ 388.59 386.02
Total 2,812.48 2,845.44

*Represents variable lease payments.

NOTE 27 : FINANCE COSTS

( in Crores)
Year Year
2020-21 2019-20

(a) Interest on bank borrowings 0.03 0.08

(b) Interest on bill discounting 10.67 18.93
(c) Interest on loan from State of Haryana 2.32 1.59
(d) Interest on lease liabilities 49.47 55.70
0.84 2.08
63.33 78.38
Interest on income tax 8.33 -
Total 71.66 78.38

NOTE 28 : DEPRECIATION AND AMORTISATION EXPENSE

( in Crores)
Year Year
2020-21 2019-20
Depreciation of Property, Plant and Equipment (Refer note 2A) 497.77
175.89 173.03
23.81 27.82
Total 697.47 689.97

Standalone 229
Asian Paints Limited

Notes to the Financial Statements (Contd.)

( in Crores)
Refer note Non-Current Current
As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020

(FVTPL)
Investments in quoted mutual funds 324.11 3,150.48
Investments in unquoted equity shares 1.07 1.07 - -
Forward exchange contract (net) 6 - - 0.88 -
325.18 420.66 3,151.36 431.85
Financial assets measured at fair value through other
comprehensive income (FVTOCI)
Investments in quoted equity shares # 578.42 521.16 - -
Investments in quoted debentures or bonds 81.35 106.77 28.33 0.50
659.77 627.93 28.33 0.50
Financial assets measured at amortised cost
Investments in unquoted government securities * * - -
Sundry deposits 5 57.02 14.77 13.38
Loan to related party 5 - - 9.78 7.93
Royalty receivable 6 - - 58.85 59.30
Due from subsidiary companies 6 - - 18.29
Due from associate Company 6 - - 0.79 2.10
Subsidy receivable from state government 6 521.56 232.39 18.08
Term deposits held as margin money against bank guarantee 6 0.07 0.08 - -
and other commitments
Bank deposits with more than 12 months original maturity 6 - - 913.85
Interest accrued on investments in debentures or bonds 6 - - 3.99

Quantity discount receivable 6 - - 221.14

Retention monies receivable from Customers 6 0.54 1.63
Trade receivables 10 - - 1,809.75 1,109.22
Cash and Cash Equivalents 11A - - 113.27 336.96
11B - - 21.64 39.10
579.19 296.58 3,205.83 2,353.55

Forward exchange contract (net) 16 - - - 0.15

- - - 0.15
Financial liabilities measured at amortised cost
Loan from State of Haryana 14.31 18.50 7.89 5.90
Lease Liabilities 15 468.73 157.22
Unpaid/Unclaimed dividend 16 - - 21.64
Retention monies relating to capital expenditure 16 1.09 19.08
Payable towards capital expenditure 16 - - 34.92
Payable towards services received 16 - - 421.23 222.65
Payable towards stores, spares and consumables 16 - - 15.69 13.33
Payable to employees 16 - - 195.56 153.07
Payable towards other expenses 16 - - 568.47 621.15
Trade payables (including Acceptances) 20 - - 2,814.30 1,760.08
484.13 515.18 4,256.00 3,021.25
#
Investments in these equity instruments are not held for trading. Upon the application of Ind AS 109 - Financial Instruments, the Company has chosen to

* 39,500/-

230 Annual Report 2020-21

 Financial Statements

As at 31st March, 2021 ( in Crores)

Fair value Fair value hierarchy
Quoted prices
As at in active observable unobservable
31.03.2021 markets inputs inputs
(Level 1) (Level 2) (Level 3)
Financial assets measured at fair value through other comprehensive
income
578.42 578.42 - -
109.68 109.68 - -

3,474.59 3,474.59 - -
1.07 - - 1.07

Forward exchange contract (net) (Refer note 6) 0.88 0.88 - -

As at 31st March, 2020 ( in Crores)

Fair value Fair value hierarchy
As at Quoted prices
31.03.2020 in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Financial assets measured at fair value through other comprehensive
income
521.16 521.16 - -
107.27 107.27 - -

- -
1.07 - - 1.07

Forward exchange contract (net) (Refer note 16) 0.15 0.15 - -

(ii) Financial Instrument measured at Amortised Cost

a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (‘Board’) oversee the management

by the Risk Management Committee and approved by the Board, states the Company’s approach to address uncertainties
in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company’s
management, the structure for managing risks and the framework for risk management. The framework seeks to identify,

Standalone 231
Asian Paints Limited

Notes to the Financial Statements (Contd.)

1) Market Risk

in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial

a) Interest Rate Risk

changes in market interest rates is minimal. The Company has not used any interest rate derivatives.
b) Foreign Currency Risk

exchange rates. The Company enters into forward exchange contracts with average maturity of less than one month to

that fall due in 20-30 days. The Company does not enter into any derivative instruments for trading or speculative purposes.
The carrying amounts of the Company’s foreign currency denominated monetary items are as follows:
( in crores)
Liabilities Assets
Currency As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020
USD 645.61 129.25 122.79
EUR 80.81 85.57 4.27 9.11
0.40 0.15 0.11 0.29
5.03 0.07 0.19
SEK 0.04 - -
JPY 0.49 0.63 - -
2.43 1.16 0.68 1.06
Total 734.81 508.40 134.38 133.44
The above table represents total exposure of the Company towards foreign exchange denominated liabilities (net). The
details of exposures hedged using forward exchange contracts are given as a part of Note 35(a) and the details of unhedged
exposures are given as part of Note 35(b).
The Company is mainly exposed to changes in USD. The below table demonstrates the sensitivity to a 5% increase or
decrease in the USD against INR, with all other variables held constant. The sensitivity analysis is prepared on the net
unhedged exposure of the Company as at the reporting date. 5% represents management’s assessment of reasonably
possible change in foreign exchange rate.
( in Crores)

Change in USD Rate Year Year Year Year

2020-21 2019-20 2020-21 2019-20
+5% (11.24) (10.11) (11.24) (10.11)
-5% 11.24 10.11 11.24 10.11
c) Other Price Risk

st
March, 2021, the carrying

232 Annual Report 2020-21

 Financial Statements

1) Market Risk (Contd.)

c) Other Price Risk (Contd)

31st

A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as
at the reporting date is given below:
If the equity prices had been higher/lower by 10% from the market prices existing as at 31st
Comprehensive Income for the year ended 31st

in Total Equity of the Company as at 31st March, 2021. 10% represents management’s assessment of reasonably possible
change in equity prices.
2) Credit Risk

Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of
transactions is reasonably spread amongst the counterparties.

with high credit ratings assigned by the international credit rating agencies.

managed in accordance with the Company’s established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly

base is large. There is no customer representing more than 5% of the total balance of trade receivables.
For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix.
The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables
and is adjusted for forward-looking estimates. The provision matrix at the end of the reporting period is given below.

% Collection to gross outstanding in

Net Outstanding > 365 days Credit loss allowance
current year
Yes < 25% Yes, to the extent of lifetime expected credit losses
outstanding as at reporting date.
Yes > 25% Yes, to the extent of lifetime expected credit losses pertaining
to balances outstanding for more than one year.
( in Crores)
Movement in expected credit loss allowance on trade receivables 31.03.2021 31.03.2020
Balance at the beginning of the year 35.90
Loss allowance measured at lifetime expected credit losses 22.29
Balance at the end of the year 58.19 35.90

Standalone 233
Asian Paints Limited

Notes to the Financial Statements (Contd.)

3) Liquidity Risk

The Company has an established liquidity risk management framework for managing its short term, medium term and
long term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from

adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure

based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the

( in Crores)
Less than 1 year Between 1 to 5 Over 5 years Total Carrying Value
years
At 31st March, 2021
- 19.82 - 19.82 14.31
Trade Payables (Refer note 20) 2,814.30 - - 2,814.30 2,814.30
Lease Liabilities (Refer note 15) 198.27 456.23 90.45 744.95 625.95
1,284.48 1.09 - 1,285.57 1,285.57
At 31st March, 2020
- 31.66 - 31.66 18.50
Trade Payables (Refer note 20) 1,760.08 - - 1,760.08 1,760.08
Lease Liabilities (Refer note 15) 118.32 789.02 638.65
1,118.89 - 1,119.35 1,119.35
4) Risk due to outbreak of COVID 19 pandemic

various elements of its Financial Statements, including recoverability of its assets.

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable
to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its
ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.
As at 31st March, 2021, the Company has only one class of equity shares and has low debt. Consequent to such capital structure,
there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company

NOTE 30 : DIVIDEND
( in Crores )
Year Year
2020-21 2019-20
Dividend on equity shares paid during the year
Final dividend for the FY 2019-20 [ 1.50 (Previous year - 7.65) per equity share of 143.88 733.79
-
Interim dividend for the FY 2020-21 [ 3.35 (Previous year - 10.50) per equity share of 321.35 1,007.16
Dividend distribution tax on interim dividend -
465.23 2,094.02

Proposed Dividend:
The Board of Directors at its meeting held on 12 th
st
March, 2021. The same
amounts to

234 Annual Report 2020-21

 Financial Statements

NOTE 31 : CONTINGENT LIABILITIES AND COMMITMENTS

a. Contingent Liabilities
( in Crores)
As at As at
31.03.2021 31.03.2020
1. Letters of comfort issued to banks on behalf of one of its indirect subsidiary. - 6.50
2. Claims against the Company not acknowledged as debts
i. Tax matters in dispute under appeal 298.77 239.93
57.17

b. Commitments
( in Crores)
As at As at
31.03.2021 31.03.2020
1. Estimated amount of contracts remaining to be executed on capital account and not provided for
i. Towards Property, Plant and Equipment 87.05
ii. Towards Intangible Assets 14.45
101.50 98.92
2. Letters of Credit and Bank guarantees issued by bankers towards procurement of goods and 58.92 2.03
services and outstanding as at year end
3. For derivative contract related commitments, Refer note 35 (a)

ASSETS’, THE DISCLOSURE RELATING TO PROVISIONS MADE IN THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH, 2021 IS AS FOLLOWS:
( in Crores)
Provision for Excise * Provision for Sales tax **
31.03.2021 31.03.2020 31.03.2021 31.03.2020
2.24 0.62 20.01
Additions/Adjustments - 2.17 1.09 2.18
Utilizations - - - -
Reversals - (0.55) (3.02) (7.78)
Closing Balance 2.24 2.24 12.48 14.41
These provisions represent estimates made mainly for probable claims arising out of litigations/disputes pending with

* Excise provisions made towards matters disputed at various appellate levels.

** Sales tax provisions made towards non receipt of C Forms and towards matters disputed at various appellate levels.

( in Crores)
Year Year
2020-21 2019-20
Statutory audit fee 1.22 1.22
Taxation Matters 0.13 0.12
0.30 0.30
For reimbursement of expenses 0.02 0.10
Total 1.67 1.74

Standalone 235
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 34 : DISCLOSURE UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT,

INTIMATION FROM THE “SUPPLIERS” REGARDING THEIR STATUS UNDER THE ACT
( in Crores)
As at As at
31.03.2021 31.03.2020
(i) Principal amount and the interest due thereon remaining unpaid to each supplier at the end of
each accounting year.
Principal amount due to micro and small enterprise 78.52* 62.09*
Interest due on above - -
(ii) Interest paid by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises - -
Development Act, 2006, along-with the amount of the payment made to the supplier beyond
the appointed day during the period
(iii) Interest due and payable for the period of delay in making payment (which have been paid but - -

Micro, Small and Medium Enterprises Act, 2006

(iv) The amount of interest accrued and remaining unpaid at the end of each accounting year - -
(v) Interest remaining due and payable even in the succeeding years, until such date when the - -
interest dues as above are actually paid to the small enterprises
*Includes

information collected by the Management. This has been relied upon by the auditors.

NOTE 35 : DETAILS OF HEDGED AND UNHEDGED EXPOSURE IN FOREIGN CURRENCY DENOMINATED

MONETARY ITEMS
a) Exposure in foreign currency - Hedged
The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the

or speculative purposes.
The forward exchange contracts used for hedging foreign Currency exposure and outstanding as at reporting
date are as under:

Buy Indian Rupee

Number of
Amount Equivalent
Contracts
(USD in mn.) ( in Crores)

Forward contract to buy USD - As at 31.03.2021 37.00 29.44 215.24

Forward contract to buy USD - As at 31.03.2020 5.00 32.27

b) Exposure in foreign currency - Unhedged

The foreign currency exposure not hedged as at 31st March, 2021 are as under:

Payable (In millions FC) Receivable (In millions FC)

Currency As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020

USD 58.86 50.67 17.68 16.25

EUR 9.42 10.29 0.50 1.10
0.07 0.03 0.02 0.06
0.50 0.61 0.01 0.02
SEK 0.05 0.06 - 0.00
JPY 7.35 9.09 - -
1.77 0.75 0.13 0.19

236 Annual Report 2020-21

 Financial Statements

NOTE 35 : DETAILS OF HEDGED AND UNHEDGED EXPOSURE IN FOREIGN CURRENCY DENOMINATED

b) Exposure in foreign currency - Unhedged (Contd.)

Payable ( in Crores) Receivable ( in Crores)

Currency As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020

USD 430.37 129.25 122.79

EUR 80.81 85.57 4.27 9.11
0.40 0.15 0.11 0.29
5.03 0.07 0.19
SEK 0.04 - 0.00
JPY 0.49 0.63 - -
2.43 1.16 0.68 1.06
519.57 476.13 134.38 133.44

Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company
by such parties:
( in Crores)
Maximum balance Maximum balance
Amount Amount
outstanding outstanding
Name of the party Relationship outstanding as at outstanding as at
during the year during the year
31.03.2021 31.03.2020
31.03.2021 31.03.2020
Reno Chemicals Pharmaceuticals and 9.78 7.93 9.78 7.93
Cosmetics Private Limited Subsidiary

The details of loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies

(ii) Details of loans given by the Company are as follows:

( in Crores)
Amount as at Amount as at
Relationship
31.03.2021 31.03.2020
Reno Chemicals Pharmaceuticals and Cosmetics Private Limited 9.78 7.93
Subsidiary Company
(iii) There are no guarantees issued by the Company in accordance with section 186 of the Companies Act, 2013 read with rules
issued thereunder.

Standalone 237
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 37 : EMPLOYEE BENEFITS

length of service and salary at retirement age. The fund has the form of a trust and it is governed by the Board of
Trustees. The Board of Trustees is responsible for the administration of the plan assets including investment of the

Each year, the Board of Trustees and the Company review the level of funding in the India gratuity plan. Such a
review includes the asset-liability matching strategy and assessment of the investment risk. The Company decides its

instruments, debt instruments of Corporates and equity instruments. The Company aims to keep annual contributions

Every two years an Asset-Liability-Matching study is performed in which the consequences of the investments are

on the duration of instruments in which investments are done. As per the latest study, there is no Asset-Liability-
Mismatch. There has been no change in the process used by the Company to manage its risks from prior periods.

employee satisfying certain conditions, as approved by the board of directors.

upon the employee satisfying certain conditions.

interest rate risk, longevity risk and salary risk.

Investment Risk
bonds. The valuation of which is inversely proportionate to the interest rate movements. There is risk of

Interest Risk

will increase the fund liabilities and vice-versa

Longevity Risk
mortality of plan participants both during and after their employment. An increase in the life expectancy of
the plan participants will increase the plan’s liability.
Salary Risk
participants. As such, an increase in salary of the plan participants will increase the plan’s liability.

as at 31st
related current service cost were measured using the projected unit credit method.

238 Annual Report 2020-21

 Financial Statements

( in Crores)
Gratuity Pension Post-Retirement Medical
(Funded Plan) (Unfunded Plan) (Unfunded Plan)
As at As at As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020 31.03.2021 31.03.2020
(i) 191.14 170.28 1.58 1.34 1.79 1.59
(ii) Current service cost 13.94 0.20 - 0.07 0.07
(iii) Interest cost 12.72 0.09 0.09 0.12 0.12
(iv) Past Service Cost 9.23 - - - - -
(v) 35.89 25.31 0.29 0.09 0.19 0.19
and Loss(ii+iii+iv)
(vi) (1.09) (0.01) 0.08 (0.05) 0.17
assumptions
(vii) Actuarial gain from changes in demographic - - - - - -
assumptions
(viii) Experience adjustment 13.23 2.68 0.13 0.36 0.11 (0.11)
(ix) Sub-total included in Other Comprehensive 12.14 16.32 0.12 0.44 0.06 0.06
Income(vi+vii+viii)
(x) Inter-Company Transfer (0.01) (0.02) - - - -
(xi) (18.08) (20.75) (0.36) (0.29) (0.05) (0.05)
(xii) 221.08 191.14 1.63 1.58 1.99 1.79
obligation(i+v+ix+x+xi)
(xiii) Opening fair value of plan assets 180.77 156.38 - - - -
(xiv) Expected return on plan assets 12.06 - - - -
(xv) 12.06 11.84 - - - -
and Loss(xiv)
(xvi) Actuarial loss 7.00 7.30 - - - -
(xvii) Sub-total included in Other Comprehensive 7.00 7.30 - - - -
Income(xvi)
(xviii) Contributions by employer 17.35 26.00 - - - -
(xix) (18.08) (20.75) - - - -
(xx) Closing fair value of plan 199.10 180.77 - - - -
assets(xiii+xv+xvii+xviii+xix)
(xxi) Net Liability (xii-xx) 21.98 10.37 1.63 1.58 1.99 1.79
Expense recognised in:
(xxii) 23.83 0.29 0.09 0.19 0.19
(xxiii) Statement of Other Comprehensive 5.14 9.02 0.12 0.06 0.06
Income(ix-xvi)
The major categories of plan assets of the fair value of the total plan assets are as follows:
( in Crores)
Gratuity Gratuity
(Funded Plan) (Funded Plan)
As at 31.03.2021 As at 31.03.2020
105.27
High quality corporate bonds (including Public Sector Bonds) 79.73 75.87
Equity shares, Equity mutual funds and ETF 9.39 5.39
Cash (including liquid mutual funds) 0.40 0.75
4.31 5.29

Standalone 239
Asian Paints Limited

Notes to the Financial Statements (Contd.)

the Company’s plans are shown below:

Gratuity Pension Post-Retirement Medical

(Funded Plan) (Unfunded Plan) (Unfunded Plan)
As at As at As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020 31.03.2021 31.03.2020
Discount Rate 6.87% 6.67% 6.87% 6.67% 6.87% 6.67%
Salary Escalation Rate All Grades- - - - -
10% for
2 years
9% for 8%
second thereafter
year 8%
thereafter

salary increase. The sensitivity analyses below have been determined based on reasonably possible changes of the
respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
( in Crores)
Gratuity Pension Post-Retirement Medical
(Funded Plan) (Unfunded Plan) (Unfunded Plan)
As at As at As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020 31.03.2021 31.03.2020
(16.86) (15.53) (0.09) (0.09) (0.23) (0.21)
points
18.38 16.59 0.10 0.09 0.24 0.22
points
17.74 15.33 - - - -
100 basis points
(16.98) - - - -
100 basis points

obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the

the Balance Sheet.

year -10.59 years).

The Company expects to make a contribution of

d) Provident Fund

Employees Provident Fund’ in line with The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

the employer and employee together with the interest accumulated thereon are payable to employees at the time

of the services by the employee. In terms of the guidance note issued by the Institute of Actuaries of India for
measurement of provident fund liabilities, the actuary has provided a valuation of provident fund liability and based
on the assumptions provided below, there is no shortfall as at 31 st March 2021.

240 Annual Report 2020-21

 Financial Statements

d) Provident Fund (Contd.)

The Company contributed 15.35 crores (Previous Year -
during the year ended 31st March 2021. The Company contributed 9.65 crores (Previous Year - 9.56 crores) towards
Asian Paints Factory Employees Provident Fund during the year ended 31 st March, 2021.
st
March, 2021 is given below:
( in Crores)
As at As at
Particulars
31.03.2021 31.03.2020
370.84
Plan assets at period end, at fair value, restricted to 370.84
Asset recognized in Balance Sheet - -
The details of the Asian Paints Factory Employees Provident Fund and plan assets position as at 31 March, 2021
st

are given below:

( in Crores)
As at As at
Particulars
31.03.2021 31.03.2020
290.18 256.50
Plan assets at period end, at fair value, restricted to 290.18 256.50
Asset recognized in Balance Sheet - -
Assumptions used in determining the present value obligation of the interest rate guarantee under the Projected
Unit Credit Method (PUCM):

As at As at
Particulars
31.03.2021 31.03.2020
Discounting Rate 6.87% 6.67%
8.50%* 8.50%

valuation purpose.

Annual Leave and Sick Leave assumptions

The liability towards compensated absences (annual leave and sick leave) for the year ended 31 st March, 2021 based on
27.90 crores.
(Previous Year- increased by 19.70 crores)

(a) Financial Assumptions

As at As at
Particulars
31.03.2021 31.03.2020
Discount Rate 6.87% 6.67%
All Grades-

9% for second year 8% thereafter

8% thereafter

Standalone 241
Asian Paints Limited

Notes to the Financial Statements (Contd.)

(b) Demographic Assumptions

As at As at
Particulars
31.03.2021 31.03.2020
Mortality
Ultimate Ultimate
Employee Turnover Upto 34yrs - 10.30%,
35-44 yrs - 4.90%,
Above 44yrs-1.80%
Leave Availment Ratio 5% 5%

NOTE 38 :
the Company to be hindering its entry in the decorative paints market by virtue of unfair use of the Company’s position of
th
January 2020, the CCI passed a prima facie

NOTE 39 : The Board of Directors of the Company and of Reno Chemicals Pharmaceuticals and Cosmetics Private Limited
(‘Reno’), a wholly owned subsidiary of the Company at their meetings held on 22 nd January 2020 and 20th January 2020
respectively, had approved the Scheme of Amalgamation of Reno with the Company, subject to necessary statutory and
regulatory approvals, including approval of the National Company Law Tribunal (NCLT) under Sections 230 to 232 and other

in the Financial Statements.

NOTE 40 : EARNINGS PER SHARE

Particulars 2020-2021 2019-2020

1 per share)* (In ) 31.82 27.67

in crores) 3,052.51 2,653.95
c) Weighted average number of equity shares outstanding during the year 95,91,97,790 95,91,97,790

outstanding during the year.

PARTY DISCLOSURES’ FOR THE YEAR ENDED 31 ST MARCH, 2021

a) Associates:

a) Revocoat India Private Limited

* The Company has ceased its business operations during the year.

242 Annual Report 2020-21

 Financial Statements

PARTY DISCLOSURES’ FOR THE YEAR ENDED 31ST

b) Subsidiaries : (where control exists)
Direct Subsidiaries:
Country of % of Holding % of Holding
Name of the Company
Incorporation as at 31.03.2021 as at 31.03.2020
Asian Paints (Nepal) Private Limited Nepal 52.71 52.71
Asian Paints Industrial Coatings Limited India 100.00 100.00
Asian Paints International Private Limited Singapore 100.00 100.00
Reno Chemicals Pharmaceuticals & Cosmetics Private Limited India 100.00 100.00
(Refer note 39)
Maxbhumi Developers Limited India 100.00 100.00
Sleek International Private Limited India 100.00 100.00
India 50.00 50.00

Indirect Subsidiaries:
i) Subsidiaries of Asian Paints International Private Limited, Singapore:
Country of % of Holding % of Holding
Name of the Company
Incorporation as at 31.03.2021 as at 31.03.2020
Enterprise Paints Limited Isle of Man, U.K. 100.00 100.00
Universal Paints Limited Isle of Man, U.K. 100.00 100.00
Kadisco Paint and Adhesive Industry Share Company Ethiopia 51.00 51.00
PT Asian Paints Indonesia Indonesia 100.00 100.00
PT Asian Paints Color Indonesia Indonesia 100.00 100.00
Asian Paints (Tonga) Limited** Kingdom of Tonga - 100.00
Fiji Islands 54.07
Asian Paints (S.I.) Limited Solomon Islands 75.00 75.00
Asian Paints (Bangladesh) Limited Bangladesh 89.78 89.78
Asian Paints (Middle East) LLC 49.00
SCIB Chemicals S.A.E. Egypt 60.00 60.00
Samoa Paints Limited Samoa 80.00 80.00
Asian Paints (Vanuatu) Limited Republic of Vanuatu 60.00 60.00
Asian Paints (Lanka) Limited Sri Lanka 99.18 99.18
Causeway Paints Lanka (Pvt) Ltd Sri Lanka 100.00 100.00
Berger Paints Singapore Pte Limited# Singapore - -
** Asian Paints (Tonga) Limited has ceased its business operations w.e.f. 10th December, 2020 and liquidated all its assets & liabilities.
th
January, 2021.
# th
September, 2019, Asian Paints International Private Limited, Singapore (‘APIPL’), subsidiary of the Company entered into a Share

Limited, Singapore (‘BPS’). The said transaction was concluded on 17 th September, 2019.

ii) Subsidiary of Enterprise Paints Limited:

Country of % of Holding % of Holding
Name of the Company
Incorporation as at 31.03.2021 as at 31.03.2020
Nirvana Investments Limited Isle of Man, U.K. 100.00 100.00

iii) Subsidiary of Nirvana Investments Limited:

Country of % of Holding % of Holding
Name of the Company
Incorporation as at 31.03.2021 as at 31.03.2020
Berger Paints Emirates LLC U.A.E. 100.00 100.00

iv) Subsidiary of Universal Paints Limited:

Country of % of Holding % of Holding
Name of the Company
Incorporation as at 31.03.2021 as at 31.03.2020
Berger Paints Bahrain W.L.L. Bahrain 100.00 100.00

Standalone 243
Asian Paints Limited

Notes to the Financial Statements (Contd.)

PARTY DISCLOSURES’ FOR THE YEAR ENDED 31 ST

c) Key Managerial Personnel:
Name Designation

Shri Amit Syngle st

April, 2020)
Shri R J Jeyamurugan th
November, 2019)
Shri K. B. S. Anand st
March, 2020)
Shri Jayesh Merchant th
November, 2019)
Non-Executive Directors
Shri. Ashwin Dani Shri. M.K. Sharma
Shri. Abhay Vakil Mrs. Vibha Paul Rishi
Shri. Malav Dani Shri. R Seshasayee
Ms. Amrita Vakil Shri Jigish Choksi
Shri. Manish Choksi Shri. Suresh Narayanan
Shri. Deepak Satwalekar
Dr. S. Sivaram

d) Close family members of Key Managerial Personnel who are under the employment of the Company:
Shri. Varun Vakil

Addverb Technologies Pvt Ltd Hitech Corporation Ltd. Rayirth Holding And Trading Company Pvt. Ltd.
Ankleshwar Industrial Development Society* Hitech Specialities Solutions Ltd. Resins and Plastics Ltd.
Ashwin Suryakant Dani (HUF) Jalaj Trading And Investment Company Pvt. Ltd.
Asteroids Trading And Investments Pvt Ltd Jaldhar Investments And Trading Company Pvt. Ltd Rupen Investment and Industries Pvt. Ltd.
Castle Investment & Industries Pvt. Ltd. Lambodar Investments And Trading Company Ltd. Sattva Holding and Trading Pvt. Ltd.
Centaurus Trading And Investments Pvt. Ltd. Lyon Investment and Industries Pvt. Ltd. Satyadharma Investments And Trading Company Pvt Ltd.
Dani Charitable Foundation Murahar Investments And Trading Company Ltd. Shardul Amarchand Mangaldas & Co.^
Dani Finlease Ltd. Navbharat Packaging Industries Ltd. Stackpack Ltd.^^
Doli Trading and Investments Pvt. Ltd. Nehal Trading and Investments Pvt. Ltd. Smiti Holding And Trading Company Pvt. Ltd.
Elcid Investments Ltd. Paladin Paints And Chemicals Pvt. Ltd. Sudhanva Investments And Trading Company Pvt. Ltd.
ELF Trading And Chemicals Mfg. Ltd. Parekh Plast India Ltd.** Suptaswar Investments And Trading Company Ltd.
Piramal Swasthya Management and Research Institute Tru Trading And Investments Pvt. Ltd.
Pragati Chemicals Ltd.# Unnati Trading And Investments Pvt. Ltd.
Hiren Holdings Pvt. Ltd. Pratham Education Foundation ## Vikatmev Containers Ltd.
* w.e.f. 22 nd

** till 31st December, 2020

#
merged with Resins and Plastics Ltd from 1st August, 2020
##
w.e.f. 18th September, 2019
^ w.e.f. 21st January, 2020
^^ w.e.f. 20th January, 2021

ii) Other :

244 Annual Report 2020-21

 THE YEAR ENDED 31ST
g) Details of related party transactions during the year ended 31st March, 2021:
( in Crores)
Entities Controlled/
Close Family
Other Entities
Key Managerial Members of
Associates Subsidiaries
Particulars Personnel Key Managerial Directors/Close
Personnel Family Members of
Directors
2020-21 2019-20 2020-21 2019-20 2020-21 2019-20 2020-21 2019-20 2020-21 2019-20 2020-21 2019-20
Revenue from sale of products 6.07 10.97 37.13 - 0.00 * 0.00^^ - - - - -
Processing Income 12.98 24.67 21.63 - - - - - - - -
Interest Income - - 0.31 0.23 - - - - - - - -
Royalty Income 3.17 3.61 60.34 57.72 - - - - - - - -
8.94 11.29 20.38 19.71 - - - - - - - -
Sitting Fees Received (from subsidiaries for - - 0.61 0.58 - - - - - - - -
nominee directors)
Processing Charges 0.15 - - - - - - - - - - -
- - 3.41 2.39 - - - - 1.96 1.67 - -
Reimbursement of Expenses - received 0.27 0.15 17.62 23.02 - - - - - - - -
Dividend received - - 8.64 8.13 - - - - - - - -
Purchase of goods 0.03 0.03 28.04 - - - - 494.82 535.18 - -
Remuneration - - - - 13.00 22.76** 0.64 - - - -
- - - - 0.14 10.68 - - - - - -
Remuneration to Non Executive Directors - - - - 5.50 - - - - - -
Reimbursement of Expenses - paid 0.34 - 1.46 - - - - - - - -
Dividend paid - - - - 19.74 73.99 29.62 110.83 196.25 - -
Contributions during the year (includes - - - - - - - - - - 89.39 92.87
Employees' share and contribution)
Investment made - - - - - - - - - - -
Loan given - - 1.85 6.25 - - - - - - - -
Sale of Assets - 0.00 ^ - - - - - - - - -
Corporate Social Responsibility Expenses - - - - - - - - 2.60 1.98 - -
Outstanding as at 31st March
Advances - - 0.08 - - - - - - - - -
Loan given - - 9.78 7.93 - - - - - - - -
Trade and other receivables 3.15 90.75 79.31 - - - - - # - -
Trade and other payables 0.14 0.02 12.57 2.27 9.28 10.32 - - 7.27 1.58 6.35 5.37
^ Sale of assets for current year -
^^ Revenue from sale of goods to Close Family Members of Key Managerial Personnel - Current year 3,270/- (Previous year - NIL).
* Revenue from sale of goods to Key Managerial personnel - Current year - NIL (Previous year -
#
20,827/-).

Standalone
** Includes remuneration of
6.50
Financial Statements

245
crores) as on 31st March 2021.
Asian Paints Limited

Notes to the Financial Statements (Contd.)

PARTY DISCLOSURES’ FOR THE YEAR ENDED 31 ST

Terms and conditions of transactions with related parties
1. The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length

been no guarantees received or provided for any related party receivables or payables.
2. Trade and other receivables are unsecured, interest free and will be settled in cash. During the year ended 31 st March,
2021, the Company has recorded an amount of 0.17 crores from Asian Paints (Bangladesh) Ltd (Previous year - 0.30
crores) and
st
March, 2021, the provision for doubtful receivables is
crores for Asian Paints (Bangladesh) Ltd (Previous year - 1.27 crores) and
Industry Share Company (Previous year - NIL)
During the year ended 31st
(Previous year - 0.03 crores).

the market and regulatory environment in which related party operate and the accounting policy of the Company.
3. During the year ended 31st March 2021, the Company has provided an additional loan 1.85 crores ( Previous year -
6.25 crores) to its wholly owned subsidiary, Reno Chemicals Pharmaceuticals & Cosmetics Private Limited for its business
activities. The loan is unsecured and repayable within a period of one year. The interest rate is in line with the prevailing

Compensation of key management personnel of the Company:

( in Crores)
Year Year
2020-21 2019-20
18.50 25.55
0.14 10.68
- 1.30
Total compensation paid to key management personnel 18.64 37.53
Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with
related parties during the year:

( in Crores)
Year Year
2020-21 2019-20
Revenue from sale of products
Asian Paints (Nepal) Private Limited 13.53 10.19
Asian Paints (Bangladesh) Limited 6.75 3.76
6.07 10.97
5.22 7.55
Kadisco Paint and Adhesive Industry Share -
11.63
43.20 45.45
Processing Income
24.67 21.63
12.98
37.65 38.11
Interest Income
Reno Chemicals Pharmaceuticals & Cosmetics Private Limited 0.31 0.23
0.31 0.23

246 Annual Report 2020-21

 Financial Statements

PARTY DISCLOSURES’ FOR THE YEAR ENDED 31ST

Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with
related parties during the year (Contd.) ( in Crores)
Year Year
2020-21 2019-20
Royalty Income
SCIB Chemicals S.A.E., Egypt 13.08 11.59
Asian Paints (Bangladesh) Limited 9.51 9.93
9.51 9.12
Asian Paints International Private Limited 7.06 7.06
Asian Paints (Nepal) Private Limited 6.19 6.73
18.16 16.90
63.51 61.33
Other non operating income
8.76 11.13
7.12 7.68
Asian Paints International Private Limited 6.03 5.33
Sleek International Private Limited 6.01
1.40 2.12
29.32 31.00
Sitting Fees Received (from subsidiaries for nominee directors)
Asian Paints International Private Limited 0.61 0.58
0.61 0.58
Processing charges
0.15 -
0.15 -
Other Services - paid
Asian Paints International Private Limited 1.24 1.32
Shardul Amarchand Mangaldas & Co. 1.21 0.29
Berger Paints Emirates LLC 0.99 0.89
Addverb Technologies Pvt Ltd 0.75 1.38
Sleek International Private Limited 0.64 0.18
Causeway Paints Lanka (Pvt.) Ltd. 0.51 -
0.03 -
5.37 4.06
Reimbursement of Expenses - received
Sleek International Private Limited 11.74 10.96
1.77 3.56
Asian Paints International Private Limited 1.13 5.19
3.25
17.89 23.17

Standalone 247
Asian Paints Limited

Notes to the Financial Statements (Contd.)

PARTY DISCLOSURES’ FOR THE YEAR ENDED 31 ST

Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with
related parties during the year (Contd.) ( in Crores)
Year Year
2020-21 2019-20
Dividend received
Asian Paints (Nepal) Private Limited 8.64 8.13
8.64 8.13
Purchase of goods
Hitech Corporation Limited 380.21 350.70
Parekhplast India Limited 69.37 119.68
73.31
522.89 537.62
Remuneration
Shri. Amit Syngle 10.42 ^ -
Shri. R J Jeyamurugan 2.58 ^^ 0.61
Shri. Varun Vakil 0.64
Shri. K.B.S. Anand -
Shri. Jayesh Merchant - 5.99
Shri. Manish Choksi - 1.75
13.64 23.30

Shri. K.B.S. Anand - 6.36

Shri. Jayesh Merchant -
Shri. Ashwin Dani 0.07 0.07
Shri. Abhay Vakil 0.07 0.07
0.14 10.68
Remuneration to Non Executive Directors
5.50
5.50 4.09
Reimbursement of Expenses - Paid
0.34 -
Asian Paints (Bangladesh) Limited 0.27 0.03
Asian Paints (Middle East) LLC 0.26 0.00 *
0.24 0.12
Asian Paints International Private Limited 0.21 0.05
Causeway Paints Lanka (Pvt) Ltd 0.13 0.61
PT Asian Paints Indonesia 0.15 0.28
0.20 0.31
1.80 1.40
Dividend Paid
Sattva Holding and Trading Private Limited 27.35
Smiti Holding And Trading Company Private Limited 26.61 98.87
191.65 721.79
245.61 919.10
^ Remuneration does not include Performance based incentive and Deferred incentive of 1.80 crores paid for previous years.
^^ Remuneration does not include Deferred incentive of 0.15 crores paid for previous years.
* Reimbursement of Expenses - Paid to Asian Paints (Middle East) LLC is 29,135/- for previous year.

248 Annual Report 2020-21

 Financial Statements

PARTY DISCLOSURES’ FOR THE YEAR ENDED 31ST

Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with
related parties during the year (Contd.) ( in Crores)
Year Year
2020-21 2019-20
Contributions during the year (includes Employees' share and contribution)
41.66
Asian Paints Factory Employees Provident Fund 30.32 29.35
Asian Paints Management Cadres Superannuation Scheme 0.06 1.08
17.35 26.00
89.39 92.87
Investment made
Asian Paints International Private Limited. -
Sleek International Private Limited - 80.00
- 379.84
Loan Given
Reno Chemicals Pharmaceuticals & Cosmetics Private Limited. 1.85 6.25
1.85 6.25
Sale of Asset
Asian Paints Industrial Coatings Limited 0.00 ^ -
-
0.00 0.48
Corporate Social Responsibility Expenses
Piramal Swasthya Management and Research Institute 2.30 # 1.55
Ankleshwar Industrial Development Society 0.27 0.21
Pratham Education Foundation 0.03 0.22
2.60 1.98
^ Sale of assets for current year -
# Additionally, an amount of 5.28 crores has been earmarked for ongoing project, for which provision is created during the year.

Standalone 249
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 42 : SEGMENT REPORTING

Basis of Segmentation:
Factors used to identify the reportable segments:

segment disclosures are consistent with the information provided to and reviewed by the chief operating decision maker.

Reportable Segment Products/Services

Paints Manufacturing and Trading of Paints and related services

Home Improvement Manufacturing and Trading of Bath Fitting products and related services

segment transfer.
( in Crores)
Year 2020-21 Year 2019-20
HOME HOME
PAINTS TOTAL PAINTS TOTAL
IMPROVEMENT IMPROVEMENT
A. SEGMENT REVENUE 18,269.74 247.12 18,516.86

B. SEGMENT RESULT 4,270.60 (6.54) 4,264.06 3,660.71 (29.37)

C. SPECIFIED AMOUNTS INCLUDED IN

SEGMENT RESULTS
Depreciation and amortisation 634.56 3.16 637.72 625.36 2.87 628.23
Interest Income 1.07 0.22 1.29 0.56 0.00* 0.56
Finance costs 61.10 0.68 61.78 75.87 0.85 76.72
Dividend Income 8.64 - 8.64 8.13 - 8.13

D. RECONCILIATION OF SEGMENT RESULT

WITH PROFIT AFTER TAX
SEGMENT RESULT 4,270.60 (6.54) 4,264.06 3,660.71 (29.37)
Add/(Less):
Interest Income 39.91
Depreciation and amortisation (59.75)
Net foreign exchange gain 18.43 2.87
Dividend received 7.81 26.60
92.28 75.26
FVTPL
Finance costs (9.88) (1.66)
Income taxes (1,037.87) (759.08)
- (33.20)
(262.48) (267.55)
Income
PROFIT AFTER TAX AS PER STATEMENT OF 3,052.51 2,653.95
PROFIT AND LOSS

250 Annual Report 2020-21

 Financial Statements

( in Crores)
As at 2020-21 As at 2019-20
HOME HOME
PAINTS TOTAL PAINTS TOTAL
IMPROVEMENT IMPROVEMENT
E. OTHER INFORMATION
Segment assets 10,577.45 203.89 10,781.34 172.22 9,653.88
Un-allocable assets 6,801.33
Total assets 17,582.67 13,587.62
Segment liabilities 4,877.76 68.71 4,946.47 3,503.80 66.56 3,570.36
Un-allocable liabilities 545.10 563.97
Total liabilities 5,491.57 4,134.33
Capital expenditure 159.31 0.99 160.30 2.59
Un-allocable capital expenditure 19.03 29.57
Total 179.33 173.41

( in Crores)
Year Year
2020-21 2019-20
F. REVENUE FROM OPERATIONS
India 18,448.37 17,113.68
68.49
Total Revenue 18,516.86 17,194.09

G. RECONCILIATION BETWEEN SEGMENT REVENUE AND REVENUE FROM CONTRACT WITH CUSTOMERS
( in Crores)
Year 2020-21 Year 2019-20
HOME HOME
PAINTS TOTAL PAINTS TOTAL
IMPROVEMENT IMPROVEMENT
Revenue from sale of products 18,009.26 243.20 18,252.46 16,810.51 17,025.26
Revenue from sale of services 27.60 - 27.60 0.35 - 0.35
50.44 3.92 54.36 51.83

Add : Items not included in disaggregated

revenue
Subsidy from state government 182.44 - 182.44 116.65 - 116.65

Total Segment Revenue 18,269.74 247.12 18,516.86 16,974.67 219.42 17,194.09

Add : Items not included in segment revenue

Royalty received
-From Subsidiaries and Associate 62.07 - 62.07 59.88 - 59.88
- - - 0.01 - 0.01

Less : Items not included in disaggregated

revenue
Subsidy from state government 182.44 - 182.44 116.65 - 116.65

Revenue from contract with customers (Note 18,149.37 247.12 18,396.49 16,917.91 219.42 17,137.33
22B)
All non-current assets of the Company are located in India.
There is no transactions with single external customer which amounts to 10% or more of the Company’s revenue.

Standalone 251
Asian Paints Limited

Notes to the Financial Statements (Contd.)

NOTE 43 : EXCEPTIONAL ITEMS

( in Crores)
Year Year
2020-21 2019-20
1. Impairment loss on investment in Sleek International Private Limited (Refer note a.) - 29.70
2. Impairment loss on investment in Maxbhumi Developers Limited (Refer note b.) - 3.50
Total - 33.20
During the previous year ended 31st March, 2020, the Company had made an assessment of the recoverable value of investment
in its subsidiaries taking into account the past business performance, prevailing business conditions and revised expectations
of the future performance.
a. The recoverable value of investment in Sleek International Private Limited was the value in use determined as per

b. Maxbhumi Developers Limited (MBL) is an asset holding Company having land held for sale. It had entered into a
Memorandum of Understanding (MoU) with a buyer for sale of the land. The recoverable value of land from the proposed
sale transaction less estimated incidental expenses is used to determine the value of investment in the subsidiary (Level 2
hierarchy of fair value measurement).

NOTE 44 : CORPORATE SOCIAL RESPONSIBILITY EXPENSES

( in Crores)

62.95 crores (2019-20 - 57.51 crores)

B. Amount spent during the year on:
2020-21 2019-20
Yet to be paid Yet to be paid
In cash* Total In cash* Total
in cash** in cash
i Construction/Acquisition of any - - - - - -
assets
ii Purposes other than (i) above 42.48 20.50 62.98 6.29
42.48 20.50 62.98 68.34 6.29 74.64
C. Related party transactions in relation to 2.60 1.98
Corporate Social Responsibility ^ :
D. Provision movement during the year ^ :
Opening provision 1.35 1.58
Addition during the year 0.39 1.35
Utilised during the year (1.35) (1.58)
Closing provision 0.39 1.35

E. Amount earmarked for ongoing project: ( in Crores)

2020-21 2019-20
In Separate In Separate
With
CSR Total With Company CSR Total
Company***
Unspent A/c Unspent A/c
Opening balance - - - - - -
Amount required to be spent during the year 14.78 - 14.78 - - -
Transfer to Separate CSR Unspent A/c - - - - - -
Amount spent during the year - - - - - -
Closing balance 14.78 - 14.78 - - -

*** Unspent amount pertaining to ongoing projects have been transferred to Separate CSR Unspent Bank A/c on 30 th April, 2021.

252 Annual Report 2020-21

 Financial Statements

( in Crores)

Amount required to be Amount spent during Closing balance

Opening Balance
spent during the year the year**

Details of excess amount spent - 62.95 62.98 0.03

NOTE 45A : ITEMS INCLUDED IN FINANCIAL ACTIVITIES

( in Crores)
Non-cash changes
As at Other Current/ As at
Cash Flows Net Fair value
31.03.2020 Changes Non-current 31.03.2021
additions changes

18.50 1.96 - - 1.75 (7.89) 14.31

5.90 (5.90) - - - 7.89 7.89
6.89 - - - (1.72) - 5.17
Lease Liabilities (Refer note 15) 638.65 (158.71) - - - 625.95
( in Crores)
Non-cash changes
As at Other Current/ As at
Cash Flows Net Fair value
31.03.2019 Changes Non-current 31.03.2020
additions changes

10.89 17.86 - - (5.90) 18.50

- - - - - 5.90 5.90
2.58 - - - - 6.89
- - - - -
Lease Liabilities (Refer note 15) 599.08 - 188.29 - - 638.65

NOTE 45B : 326.07 crores (Previous year - 315.81 crores)

55.70 crores).

NOTE 46 : The Financial Statements are approved for issue by the Audit Committee and the Board of Directors at their
respective meetings conducted on 12th May, 2021.

Standalone 253
Asian Paints Limited

Independent Auditor’s Report

To the Members of Asian Paints Limited
equity for the year ended on that date.
REPORT ON THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS
Basis for Opinion
Opinion We conducted our audit of the Consolidated Financial
We have audited the accompanying Consolidated Financial Statements in accordance with the Standards on Auditing
Statements of Asian Paints Limited (hereinafter referred
to as “the Parent”) and its subsidiaries (the Parent and its responsibilities under those Standards are further
subsidiaries together referred to as “the Group”) which described in the Auditor’s Responsibility for the Audit of the
Consolidated Financial Statements section of our report. We
comprise the Consolidated Balance Sheet as at 31 st are independent of the Group in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants
of India (ICAI) together with the ethical requirements that
Statement and the Consolidated Statement of Changes in are relevant to our audit of the Consolidated Financial
Statements under the provisions of the Act and the rules
accounting policies and other explanatory information.
responsibilities in accordance with these requirements
In our opinion and to the best of our information and
and the ICAI’s Code of Ethics. We believe that the audit
according to the explanations given to us and based
on the consideration of reports of other auditors on
provide a basis for our audit opinion on the Consolidated
separate Financial Statements of the subsidiaries and
Financial Statements.
the aforesaid Consolidated Financial Statements give the
Key Audit Matters
Act”) in the manner so required and give a true and fair
view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Consolidated Financial Statements of the current period.
These matters were addressed in the context of our audit
amended (‘Ind AS’) and other accounting principles generally

the Group as at 31st separate opinion on these matters. We have determined the
matters described below to be the key audit matters to be
communicated in our report.

The Key Audit Matter How was the matter addressed in our audit

Revenue recognition – the Parent (Refer note 1.3(f) and 23A of the Consolidated Financial Statements)
Our audit procedures with regard to revenue recognition included

material misstatement of results for the year.

procedures.
Impairment of goodwill in Consolidated Financial Statements (Refer note 1.3 (e) and Note 3A of the Consolidated Financial
Statements)
Our audit procedures to the extent the goodwill is recognised in the

the approach adopted for testing impairment including the method

emanates from the subsidiaries. Goodwill is required to be tested

subsidiaries have estimated the recoverable amount of the Cash

Generating Unit (CGU) to which the goodwill is allocable based on reasonableness and involving fair value specialists. We challenged the
Value in Use (ViU) and additionally considered fair value less cost assumptions made by the management of the Parent in relation to the
to sell in respect of certain subsidiaries. Determination of ViU and ViU computation. We also reviewed the sensitivity analysis performed
fair values less cost to sell determined by reference to share price by the management of the Parent on the key assumptions.

254 Annual Report 2020-21