2.12 Provisions and contingent liabilty

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. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.
If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects
the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable
estimate of the amount cannot be made.

2.13 Income taxes

Tax expense for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of profit and
loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never
taxable or deductible. The Company's liability for current tax is calculated using tax rates and tax laws enacted in the country. It is recognised
in the Statement of Profit and Loss except to the extent it relates to an item which is recognised directly in equity or in other comprehensive
income.

Interest expenses and penalties, if any, related to income tax are included in finance cost and other expenses respectively. Interest Income, if
any, related to Income tax is included in Other Income.

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting
purposes and the corresponding amounts used for taxation purposes.

A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets are recognised only
to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets
are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is
an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.

2.14 Leases

Company has adopted Ind AS 116 “Leases” Starting April 01, 2019, with initial date of application being April 01, 2019.
Accounting policy upto March 31, 2019:

The Company determines whether an arrangement contains a lease by assessing whether the fulfillment of a transaction is dependent on the use
of a specific asset and whether the transaction conveys the right to use that asset to the Company in return for payment. Where this occurs, the
arrangement is deemed to include a lease and is accounted for either as finance or operating lease. Leases are classified as finance leases where
the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Rentals payable under operating leases are charged to the statement of profit and loss on a straight line basis over the term of the relevant lease
unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Accounting policy w.e.f. April 01,2019

The Company applied Ind AS 16 using the modified retrospective approach with a date of initial application of 1 January 2019 and accordingly
the comparative figures have not been restated. Moreover, there was no impact of initial application on the balance of retained earnings as of
April 01,2019. As a result, the Company has changed its accounting policy for lease contracts as detailed below.

The Company as a lessee

At inception of a contract the Company assess whether a contract is, or contain a lease. A contract is, or contains, a lease if contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognises a right of use asset and a lease liability at the lease commencement date. The right of use asset is initially measured
at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date,
plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset
or the site on which it is located, less any lease incentives received.

The right of use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the
useful life of the right of use asset or the end of the lease term. The estimated useful lives of right of use assets are determined on the same
basis as those of property, plant and equipment.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally,
the Company uses its incremental borrowing rate as the discount rate. The lease liability is measured at amortised cost using the effective
interest method.

The Company as a lessor

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each
lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership
of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the
Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

2.15 Non-current assets held for sale and discontinued operations

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying value and fair
value less costs to sell. Assets and disposal groups are classified as held for sale if their carrying value will be recovered
through a sale transaction rather than through continuing use. Non-current assets or disposal groups comprising of assets
and liabilities are classified as ‘held for sale' when all the following criteria are met: (i) decision has been made to sell, (ii) the assets are
available for immediate sale in its present condition, (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to
be concluded within 12 months of the Balance Sheet date.

2.16 Borrowing costs

Borrowing costs consist of interest and other costs that the Company incurred in connection with the borrowing of funds. Borrowing costs
that are directly attributable to the acquisition and/or construction of a qualifying asset, till the time such qualifying asset becomes ready
for its intended use, are capitalized. A qualifying asset is one that necessarily takes a substantial period to get ready for its intended use.
All other borrowing costs are charged to the Statement of Profit and Loss on an accrual basis as per the effective interest
rate method.

2.17 Expenditure

Expenses are accounted on accrual basis except coupon redemption scheme expenses which are e recorded on actual paymen basis.

2.18 Earning per share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company
by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion
of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

Note - 40: Segment Reporting

The Company activity during the year revolves around manufacturing and trading of wood coating products. Considering the nature of Company's
business and operations, as well as based on review of operating results by the chief operating decision maker to make decision about resource
allocation and performance measurement, there is only one reportable business segment viz. “Wood Coating Products” and a single geographical
segment in accordance with the requirement of Ind AS 108 - “Operating Segments”. Accordingly no separate disclosures has been made for
segment reporting under Ind AS 108.

Note - 42: Capital management

The Company's capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure
that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans.

The funding requirements are met mostly through internal accruals and some short-term borrowings. The Company monitors the capital structure on
the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.In all the financial years presented in these financial
statements Company has negative net debts and has met its capital requirements through internal accruals. For the purpose of capital management,
capital includes issued equity capital, securities premium and all other reserves. Net debt includes short-term borrowings as reduced by cash and cash
equivalents, fixed deposits held with bank and margin money held with banks.

Note - 43: Financial Instruments

This note gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items
that contain financial instruments. The significant accounting policy in relation to financial instruments is contained in Note 2.9.
a) Financial assets and liabilities

The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at March 31,2025, & March 31,
2024.

* The fair value of all other financial asset and liability carried at amortize cost is equal to their carrying value
(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1
to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices in
active markets for identical assets or liabilities. Company does not hold any asset/liability that fall into this category.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other
than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from
prices). This level of hierarchy includes Company's over-the-counter (OTC) derivative contracts.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured
using inputs that are not based on observable market data (unobservable inputs). Company does not hold any asset/liability that fall into this category.

d) Financial risk management

The Company's activities are primarily exposed to a credit risk and market risk arising from movement in
foreign exchange rates i.e. foreign exchange risk.

(i) Market risk - Foreign currency exchange rate risk:

The Company make significant amount of purchases in foreign currency which exposes the Company
to the risk of fluctuation in foreign currency exchange rates which may have a potential impact on the
statement of profit and loss and equity.

In order to protect itself from foreign currency movements, Company often enters into forward exchange
contracts from scheduled bank for its anticipated receipts. The exposure is such contract is disclosed in
Note 43(c) above.

(ii) Credit risk

The credit risk exposure of the Company primarily arises from Cash and cash equivalents, trade
receivables, derivative financial instruments, financial assets measured at amortised cost. Credit risk
arises from the possibility that the counter party may not be able to settle their obligations. To manage trade
receivable, the Company periodically assesses the financial reliability of customers, taking into account
the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables.

None of the financial instruments of the Company results in material concentration of credit risks.

Note 44: Employee benefit Plan
(A) Defined benefit Plan

The defined benefit plan operated by the Company is as below:

Retiring gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for
a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount
equivalent to 26 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The
Company has taken a gratuity plan from Life Insurance Corporation (LIC) and annual contributions are made to this plan . The Company
accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The defined benefit plans expose the Company to a number of actuarial risks as below:

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan's liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants. An increase in the life expectancy of the plan participants will increase the plan's liability.

(B) Defined Contribution Plan
Provident fund and pension

In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are
entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make
monthly contributions at a specified percentage of the covered employees' salary.The contributions, as specified under the law, are made
to the employee provident fund organization (EPFO).

The total expenses recognised in the statement of profit and loss during the year on account of defined contribution plans amounted to
Rs.77.99 Lakhs (PY: Rs. 58.27 Lakhs)

NOTE 45 DIVIDEND ON EQUITY SHARE

The Board of Directors of the Company have proposed final dividend of Rs 1.50 (Rupees one and fifty paisa only) per equity share of
the face value of Rs 10 each for the financial year ended 31 March 2025 which is further subject to the approval of the members at the
ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration
of dividend. The Board of Directors have made payment of final dividend of Rs 1.50 (Rupees one and fifty paisa only) per equity share of
the face value of Rs 10 each for the financial year ended 31 March 2024.

The accompanying notes are integral part of the Financial Statements For and On Behalf of the Board of Directors

In terms of our report of even date SIRCA PAINTS INDIA LIMITED

For and on behalf of

Sd/- Sd/-

For Rajesh Kukreja & Associates Sanjay Agarwal Apoorv Agarwal

Chartered Accountants Chairman Cum Managing Director Joint Managing Director

FRN:- 0004254N DIN: 01302479 DIN: 01302537

^Sd/- Sd/- Sd/-

Sudarsh^{an Lal Ma}rw^ah Shallu Hira Kumar

⁽.^a Chief Financial Officer Company Secretary

^mter^pNo.-⁰⁰⁷⁶⁰⁴ p_AN;- DCDPS8801K PAN:-AZOPK3543K

Place:-New Delhi
Date:- 22/05/2025