3.20 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed,
for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision is presented in the Standalone Statement of Profit and Loss, net of any
reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current
best estimate.

3.21 Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration
or is due from the customer. If a customer pays consideration before the Company transfers goods or services to the customer,
a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are
recognised as revenue when the Company performs under the contract.

3.22 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is
not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured
reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements.
Contingent assets are only disclosed when it is probable that the economic benefits will flow to the entity.

3.23 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2025, MCA has notified Ind AS
- 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. 1 April 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its standalone financial statements.

3.24 Standards notified but not yet effective

MCA vide notification dated 7 May 2025 notified the Companies (Indian Accounting Standards) Amendment Rules 2025,
which amended Ind AS 21, The Effects of Changes in Foreign Exchange Rates, with respect to lack of exchangeability. The
same shall be applicable for reporting periods beginning on or after 1 April 2025.

4. Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company’s standalone financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities at the date of the standalone financial statements. Estimates and assumptions are

continuously evaluated and are based on management’s experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. In
particular, the Company has identified the following areas where significant judgements, estimates and assumptions are
required. Further information on each of these areas and how they impact the various accounting policies are described below
and also in the relevant notes to the standalone financial statements. Changes in estimates are accounted for prospectively.

i. Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the standalone financial statements:

a. Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company,
including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only when
one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum,
of contingencies inherently involves the exercise of significant judgments and the use of estimates regarding the
outcome of future events.

b. Provisions

At each balance sheet date basis the management judgement, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future
outcome may be different from this judgement.

c. Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future
taxable income will be available against which the deductible temporary differences and tax loss carry-forward can
be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or
uncertainties in various tax jurisdictions.

ii. Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its assumptions and estimates on parameters available when
the standalone financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market change or circumstances arising beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

a. Useful lives of tangible/intangible assets

The Company reviews its estimate of the useful lives of tangible/intangible assets at each reporting date, based on
the expected utility of the assets.

b. Defined benefit obligation

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate, future salary increases,
mortality rates and future pension increases. In view of the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed
at each reporting date.

c. Share based payment

Estimating fair value for share-based payment requires determination of the most appropriate valuation model. The
estimate also requires determination of the most appropriate inputs to the valuation model including the expected life
of the option, volatility and dividend yield and making assumptions about them.

d. Leases - determination of the appropriate discount rate to measure lease liabilities

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate to measure lease liabilities. The incremental borrowing rate is the rate of interest that the Company would have
to pay to borrow over similar terms which requires estimations when no observable rates are available.

e. inventories

The Company estimates the net realisable values of inventories, taking into account the most reliable evidence
available at each reporting date. The future realisation of these inventories may be affected by future technology or
other market-driven changes that may reduce future selling prices. Further, the management identifies old, slow-
moving, damaged, and expired inventory to ascertain whether an allowance is required to be made in the financial
statements for any obsolete and slow-moving items.

f. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Standalone Balance Sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including
the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported
fair value of financial instruments.

g. Allowance for expected credit loss

The Company applies Expected Credit Losses (“ECL”) model for measurement and recognition of loss allowance on
trade receivables. In accordance with Ind AS 109 - Financial Instruments, the Company applies ECL model for
measurement and recognition of impairment loss on the trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are within the scope of Ind AS 115 ‘Revenue from Contracts
with Customers’.

For this purpose, the Company follows ‘simplified approach’ for recognition of impairment loss allowance on the trade
receivable balances. The application of simplified approach does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition. As a practical expedient, the Company uses a provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates
over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date,
the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

Notes:

(i) For trade receivables from related parties, refer note 46.

(ii) Trade receivables are non interest bearing and credit period generally falls in the range of 0 to 120 days.

(iii) Refer note 19 and note 23 for information on trade receivables pledged as security by the Company.

(iv) There are no unbilled receivables, hence the same is not disclosed in the ageing schedule.

(v) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other
person. The amount receivable from companies, where any director of the Company is a director, is Rs. 1.46 crore (31 March
2024: Rs. 2.28 crore).

(vi) Trade receivables are initially recognised at transaction price as they do not contain a significant financing component. This
implies that the effective interest rate for these receivables is zero. Subsequently, the Company applies lifetime expected
credit loss model for measurement of trade receivables.

Transferred trade receivables

The carrying amounts of the trade receivables include receivables which are subject to a factoring arrangement by the Company
where it has retained significant risks and rewards of receivables. Under this arrangement, the Company has sold trade receivables
to the financial institution in exchange for cash proceeds. The Company therefore continues to recognise the transferred assets in
their entirety in its balance sheet. Consequently, the proceeds received from transfer are recorded as loans from financial institutions
and classified under short-term borrowings. The Company considers that the receivables continues to be held as part of ‘held to
collect business model’ and hence continues measuring them at amortised cost. The carrying amount of the associated liabilities
as at the reporting date amounts to Rs. 14.86 crore (31 March 2024: Nil).

i. Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utiilised in accordance with the provisions of
the Act.

ii. Share options outstanding account

The above reserve relates to the share options granted by the Company to its employees under its employee share option plan.
Further information about share-based payments to employees is set out in note 47

iii. General reserve

The above reserve relates to annual transfer of net income at a specified percentage in accordance with the Companies (Transfer
of Profits to Reserve) Rules, 1975. Consequent to introduction of the Companies Act, 2013, there is no such requirement to
mandatorily transfer a specified percentage of the net profit to general reserve.

iv. Retained earnings

Retained earnings are created from the profit/ loss of the Company, as adjusted for distributions to owners, transfers to other
reserves, etc.

v. Revaluation reserve

Revaluation reserve is on account of revaluation of land at various locations and other assets at the time of Ind AS transition.

vi. Capital reserve

The capital reserve has been created through transfer of the equity portion of the optionally convertible debentures, on their
repayment. It is not available for distribution to shareholders as dividend.

vii. Money received against share warrants

Money received against share warrants is the amount received by the Company which is converted into shares at a specified rate.
These warrants were carrying a right to subscribe one equity share per warrant. The price of the warrants were determined in
accordance with the ICDR Regulations. As at the reporting date, money has been received against these warrants.

viii. Equity portion of optionally convertible debentures and capital reserve

During the year ended 31 March 2022, as per debenture subscription agreement dated 18 January 2022, the Company had issued
30,55,556 unlisted, unsecured optionally convertible debentures of the face value of Rs. 180 each aggregating Rs. 55.00 crore by
way of preferential allotment on private placement basis. The said debentures were carrying interest @ 9% p.a. (payable quarterly)
and were optionally convertible into 3,055,556 equity shares at the discretion of debenture holder if the closing listed price of equity
shares breaches the issue price of debenture on or before 23 August 2023. During the previous year, the equity portion of the
debentures, earlier recognised, has been transferred to capital reserve on repayment on 22 August 2023.

Nature of security:

(a) IDFC Term loan

Term loan of Rs. 7.47 crore - repaid during the year

(a) First pari passu charge on movable fixed assets of the Company

(b) Exclusive charge on below immovable properties¬
- Commercial office in sector-32 Gurgaon

- Commercial office in Mumbai

(c) DSRA for one quarter principal plus interest

(b) IDFC Term loan

Term loan of Rs. 17.19 crore (31 March 2024: Rs. 17.21 crore) availed from IDFC First Bank is secured by:

1. Exclusive charge on commercial plot in Gurugram valued at Rs 51 crore,

2. First pari - paasu charge on assets created out of this term loan;

3. Subservient charge on current assets and movable fixed assets;

4. DSRA equivalent to 2 quarter’s principal and interest payment; and

5. Corporate guarantee of Shalimar Adhunik Nirman Limited.

(c) SBI - GECL 2

Working Capital Term loan (WCTL) of Rs. 1.19 crore (31 March 2024: Rs. 3.65 crore) availed from State Bank of India is
secured by:

Primary - extension of Hypothecation 2nd charge on entire current assets of the Company on pari-passu basis with other banks
under consortium banking arrangements.

Collateral

Extension of second charge on fixed assets of the company on pari- passu basis with other consortium members (by way of EM on
Land & Bldg. and hypothecation charge on other fixed assets and plant and machinery situated at the Company’s factory at Gat
No.121 (1,850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt), 133 (20,500 sq mt), 134 (8,000 sq mt) & 141 (7,550
sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District Nashik, in the Registration District and Sub District of Igatpuri,
standing in the name of the Company. (Total Land area: 62,200 sq mt).

Extension of EM pari passu 2nd charge with consortium members on the entire fixed assets and Land & Building at Survey
Nos.1AIB (3.49 acres), 3/2 (3.32 acres), 3/1 (1.50 acres), 15/1A(0.28 acre), 1511B (0.16 acre), 15/1C (0.14 acre), No.19, Chinnapuliyur
Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu Chinnapuliyur, Thiruvallur, Tamil Nadu, 600040, (Semi Urban),
Admeasuring Total Area : 8.89 acres,

Extension of pari passu 2nd charge with consortium on the Plant & Machinery of the Company at Howrah Factory.

Extension of Mortgage and Pari-passu 2nd charge with the consortium members (1 st charge is with Religare Finvest) on the entire
fixed assets at A1 & A2, UPSIDC Industrial Area, District Bulandsahar, Sikandarabad Land Admeasuring : 41,242 sq mt

(d) UBI

Term loan of Rs. 0.45 crore - repaid during the year

Hypothecation by way of first charge in favour of the bank:-

All the goods, stocks, raw materials, plant, machinery, fixtures, implements, fittings and other installations, furniture, vehicles,
computers and all other articles and things both present and future, whether installed or not, whether lying loose or in cases, at site
or in transit or which may at any time hereafter during the continuance of this security be installed or lying loose or in cases or being
in or upon or about the borrower’s factory premises, warehouses and godowns or wherever else the same may be or be held by
any party anywhere to the order and disposition of the Borrower or in the course of transit to the Borrower (including those goods,
machinery, implements etc. purchased out of the term loan sanctioned by the bank covered under this agreement) described in
general terms hereto.

(e) UBI GECL 2

Term loan of Rs. 1.09 crore (31 March 2024: Rs. 1.83 crore) availed from Union Bank of India and Union Bank of India
(GECL) is secured by:

(i) 2nd charge on the immovable properties of the Company situated at A1, A2 UPSIDC Industrial area, Sikandrabad, Bulandsahar,
UP.

(ii) 2nd charge on entire movable fixed assets of the Company situated at A1, A2 UPSIDC Industrial area, Sikandrabad, Bulandsahar,
UP.

(f) PNB GECL 2

Working Capital Term loan (WCTL) of Rs. 0.57 crore (31 March 2024: Rs. 1.13 crore) availed from Punjab National Bank is
secured by:

Primary - Hypothecation 2nd charge on the security of raw materials, SIP, finished goods stores, spares, receivables and all other
current assets. Our charge would rank pari-passu first charge with other members of the consortium.

Collateral

(i) Pari passu 2nd hypothecation charge on factory land and building of the Company with other consortium members, situated at

the Company’s factory at Gat No.121 (1850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt), 133 (20,500 sq

mt), 134 (8,000 sq mt) & 141 (7,550 sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District Nashik, in the Registration
District and Sub District of Igatpuri, standing in the name of the Company. (total land area: 62,200 sq mt)

(ii) Pari passu 2nd charge with other consortium member banks over plant & machinery at the Nashik Plant.

(iii) Pari passu 2nd hypothecation charge with consortium on the plant and machinery of the Company at Howrah factory.

(iv) Pari passu second hypothecation charge with consortium members on the entire fixed assets and land and building at Survey
Nos.1 A1B (3.49 acres), 3/2 (3.32 acres), 3/1(1.50 acres), 15/1A(0.28 acre), 15/1B (0.16 acre), 15/1C (0.14 acre), No.19,
Chinnapuliyur Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu, Chinnapuliyur, Thiruvallur, Tamil Nadu, 600040,
(Semi Urban), admeasuring total area: 8.89 acres.

(v) Pari passu second hypothecation charge with the consortium members on the entire fixed assets at A1 & A2, UPSIDC Industrial
Area, District Bulandsahar, Sikandrabad Admeasuring: 41,242 sq mt land.

These cash credit and working capital demand loan facilities are secured by:

(1) Primary security

Hypothecation charge on entire current assets of the Company on pari-passu basis with other banks under consortium banking

arrangements

(2) Collateral security:

(i) Pari passu first hypothecation charge on factory land and building of the Company with other consortium members,
situated at the Company’s factory at Gat No.121 (1,850 sq mt), 126 (3,300 sq mt), 127 (16,500 sq mt), 132 (4,500 sq mt),
133 (20,500 sq mt), 134 (8,000 sq mt) & 141 (7,550 sq mt) situated at Village Gonde Dumala, Taluka Igatpuri, District
Nashik, in the Registration District and Sub District of Igatpuri, standing in the name of the Company. (Total Land area:
62,200 sq.mt)

(ii) Pari passu first charge with other consortium member banks over plant & machinery at the Nashik Plant.

(iii) Pari passu first hypothecation charge with consortium on the plant and machinery of the Company at Howrah factory.

(iv) Pari passu second hypothecation charge with consortium members on the entire fixed assets and land and building at
Survey Nos.1A1B (3.49 acres), 3/2 (3.32 acres), 3/1(1.50 acres), 15/1A(0.28 acre), 15/1B (0.16 acre), 15/1C (0.14 acre),
No.19, Chinnapuliyur Village, Gummidipoondi Taluka, Thiruvallur District, Tamilnadu, Chinnapuliyur, Thiruvallur, Tamil
Nadu, 600040, (Semi Urban), Admeasuring Total Area: 8.89 acres.

(v) Pari passu second hypothecation charge with the consortium members on the entire fixed assets at A1 & A2, UPSIDC
Industrial Area, District Bulandsahar, Sikandrabad admeasuring: 41,242 sq mt land.

Factored receivables are secured by:

Corporate guarantee given by Holding Company.

Bill discounting:

The Company has availed letter of credit (‘LCs’) facility from State Bank of India Limited and Punjab National Bank Limited for

payment to its vendors, against which the monies were yet to be paid by the banks as at 31 March 2025 and 31 March 2024.

Amount of facilities availed as at 31 March 2025 and 31 March 2024 are:

41 Gratuity and others post employement benefit plans :

a) Defined contribution plans

Contribution to defined contribution plans, recognised as expense for the year is as under:Employer’s contribution to provident and
other funds Rs. 3.47 crore (31 March 2024: Rs. 2.95 crore) (refer note 34)

b) Defined benefit plan (Gratuity)

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit
method made at the end of each year. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who
has completed five years or more of service gets a gratuity on retirement/leaving the organisation at 15 days salary (last drawn
salary) for each completed year of service. The scheme partially funded. Actuarial gains or losses are recognised in other
comprehensive income.

c) Other benefits (Compensated absences)

The employees of the Company are entitled to leaves as per the leave policy of the Company. Compensated absences which are
not expected to occur within twelve months after the end of the period in which the employee renders the related service are
recognised based on actuarial valuation. The expense related to compensated absences are recognised in standalone statement
of profit and loss as employee benefits expense. As the Company does not have an unconditional right to defer settlement for any
of the leave obligations, it has disclosed the amount as current liabilities.

The following tables summarises the components of net benefit expense recognised in the Statement of Profit and Loss and the
funded status and amounts recognised in the balance sheet:

IX Description of risk exposures:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over

time. Thus, the Company is exposed to various risks as follows -

A) Salary Escalation Risk- The present value of the defined benefit plans calculated with the assumptions of salary increase rate
of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase
in salary used to determined the present value of obligation will have a bearing on the plan’s liability.

B) Interest Rate Risk - The plan exposes the Company to the risk of decrease in interest rates. A decrease in interest rate will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the
liability.

C) Liquidity Risk - This is the risk that the Company is not able to meet the short term benefit payout. This may arise due to non¬
availability of enough cash and cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

D) Demographic Risk - The Company has used certain mortality and attrition assumptions in valuation of the liability. The company
is exposed to the risk of actual experience turning out to be worse compared to the assumptions.

E) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to Government Bonds Yield. If plan liability is funded and return on plan assets is below this rate, it will create a plan
deficit.

42 Lease related disclosures as lessee

The Company’s lease asset class primarily consists of leases for land, corporate office, warehouses and equipments. With the
exception of short-term leases, leases of low-value and cancellable long-term leases underlying assets, each lease is reflected on
the balance sheet as a right of use asset and a lease liability.

Lease liabilities are measured at the present value of the remaining lease payments, discounted using the weighted average
borrowing rate ranging 10.70-12.16% (31 March 2024: 9.73%-12.16%).

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another
party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by
incurring a substantive termination fee. Some leases contain an option to extend the lease for a further term. The Company is
prohibited from selling or pledging the underlying leased assets as security against the Company’s other debts and liabilities.

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and
processes for measuring and managing risk.

A Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans
and advances, cash and cash equivalents and deposits with banks.

Trade receivables

The Company primarily sells paints and coatings to customers operating in India and outside India. The Company’s exposure
to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which
customers operate. Considering the nature of trade receivables, and entity’s history of credit with those receivables, entity has
rebutted the presumption of having significant increases in credit risk since initial recognition for financial assets which are
more than 30 days past due.

Cash and cash equivalents and deposits with banks

Cash and cash equivalents of the Company are held with banks which have high external rating. The Company considers that
its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

Loans to employees and security deposits

The Company provides loans to its employees and furnish security deposit to various parties for electricity, communication,
etc. The Company considers that its loans have low credit risk or negligible risk of default as the parties are well established
entities and have strong capacity to meet the obligations.

Investments

The Company has invested in unquoted equity instruments and preference shares of its subsidiaries, and other company. The
management actively monitors the operation of subsidiaries and other company which affect investments. The Company does
not expect the counterparty to fail in meeting its obligations other than those specifically considered as impairment allowance
as per the management’s assessment.

j The Company has registered with Ministry of Corporate Affairs/ Registrar of Companies, all charges or satisfaction within the
statutory time period.

k The Company is compliant in respect of number of layers prescribed under Clause (87) of Section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

l The Company has not entered into any scheme of arrangement in the current and previous year.

m The Company has not advanced or provided loan to or invested funds in entity including foreign entity or to any other person with

the understanding that the intermediary shall(i) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (ultimate beneficiaries) or(ii) provide any guarantee, security or the like to or on
behalf of the ultimate beneficiaries.

n The Company has not received any funds from any person or entity including foreign entity with the understanding that the
company shall(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the funding party (ultimate beneficiaries) or(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

o In view of continued losses, the Company is not covered by Section 135 of the Companies Act, 2013 dealing with CSR activities.

p The Company has not undertaken any transaction which is not recorded in the books of accounts that has been surrendered or

disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961).

55 During the current year, the Company has incurred a net loss after tax of Rs. 80.11 crore and has accumulated losses amounts to
Rs. 482.48 crore as at 31 March 2025. Further, the Company has negative cash flow from operating activities amounting to Rs.
58.63 crore during current year. The above events cast a doubt in going concern, but considering the undrawn credit facilities from
the banks and the expected growth opportunities as per the future business plans and commitment from the Holding Company to
extend financial support to the Company for meeting the obligations expected to arise in the foreseeable future, the accompanying
standalone financial statements have been prepared on a going concern basis and the Company will be able to realize its assets
and discharge its liabilities as recorded in these financial statements, in the normal course of business.

56 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which
uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of
recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with
the date when such changes were made and ensuring that the audit trail cannot be disabled. Except for the matters mentioned
below, the Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit log)
facility and the same was enabled at the application level.

a) The Company used accounting software to maintain its books of account from 1 April 2024 to 31 August 2024, during which
the audit trail (edit log) feature was not enabled at the database level to log any direct data changes.

b) The Company used another accounting software to maintain its books of account from 3 September 2024 to 31 March 2025.
The database of this accounting software is managed by a third-party software provider. The ‘Independent Service Auditor’s
Assurance Report on the Description of Controls, their Design and Operating Effectiveness’ (Type 2 report issued in accordance
with ISAE 3402, Assurance Reports on Controls at a Service Organization) does not provide any information regarding direct
changes made at the database level of the said software for the specified period.

57 Amounts below the rounding off norms adopted by the Company are presented as “0”.

58 Previous year figures have been regrouped/reclassified, wherever considered necessary in order to comply with financial reporting
requirements. The impact of such regrouping/reclassification is not material to these standalone financial statements.

The accompanying notes are an integral part of standalone financial statements.

As per our report of even date attached

For Walker Ohandiok & Co LLP For and on Behalf of the Board of Directors of

Chartered Accountants Shalimar Paints Limited

Firm’s Registration No.: 001076N/N500013

Rakesh R. Agarwal Kuldip Raina O Venugopal

Partner Managing Director & CEO COO & Whole-time Director

Membership No.: 109632 DIN:- 10956069 DIN: 08686707

Sachin Naik Snehal Saboo

Chief Financial Officer Company Secretary

Mem. No:- ACS A49811

Place : Mumbai Place : Mumbai

Date : 26 May 2025 Date : 26 May 2025