ii. Buildings include those constructed on leasehold land.
iii. Title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease arrangements are duly executed in favour of the lessee) are held in the name of the Company.
iv. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
v. The Capital work in progress (CWIP) consists of construction of building and expenditure towards plant and machinery at its manufacturing facilities.
vi. Refer note 30 for disclosure of contractual commitments towards acquisition of Property, plant and equipment and intangible assets.
As at March 31, 2026, the carrying amount of goodwill is H 3,055.20 Lakhs (March 31, 2025: H 3,055.20 Lakhs) (deemed cost as at April 01, 2019). Such goodwill arose as part of the business purchase and merger of Hi-Build Coating Private Limited (HBC) pursuant to the composite scheme of amalgamation approved by National Company Law Tribunal (""NCLT"") vide its order dated March 02, 2017 (Appointed date: April 01, 2016). For the purpose of impairment testing of Goodwill, as per the business plan of purchase, the entire business of the Company is considered as single Cash Generating Unit (CGU), as post business combination the entire operations of the Company have been integrated for synergies, includes aligning of manufacturing facilities, logistics management, technology exchange, etc.
The Company performs impairment testing annually. The recoverable amount of the CGU has been determined based on a value in use calculation using cash flow projections from financial budgets approved by the management covering a five year period. The pre-tax discount rate applied to cash flow projections for impairment testing during March 31, 2026: 10% (March 31, 2025: 10%). Based on the cash flow projections, discount rate and other assumptions including gross margin, sales discount, market share, volume growth, etc it was concluded that the value in use exceeds the carrying value of goodwill and overall CGU. As at March 31, 2026, there were no indicators of impairment noted by management. The management believes that any reasonable change in the key assumptions would not cause the carrying amount to exceed the recoverable amount of the overall CGU.
The Company constantly monitors the latest government legislation in relation to climate-related matters. At the current time, no legislation has been passed that will impact the Company. The Company will adjust the key assumptions used in value-in-use calculations and sensitivity to changes in assumptions should a change be required.
No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade receivables due from firms or private companies respectively in which any director is a partner, a director or a member.
Trade receivables are non interest bearing and generally on terms of 30 to 90 days.
Refer note 38(b)(i) for movement of expected credit loss.
The trade receivables include H 1.00 Lakhs (March 31, 2025 : H 0.11 Lakhs) receivable from related party, refer note 28.
There are no unbilled receivables as at March 31, 2026 and March 31, 2025.
The Company has only one class of equity shares having a par value of H 10 per share (March 31, 2025: H 10 per share). Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of the preferential amounts. The distribution of the remaining assets of the Company will be in proportion to the number of equity shares held by the shareholders.
The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting (refer note 12).
Promoters' and 'Promoter Group' for the purpose of this disclosure means promoters as defined under Section 2(69) of Companies Act, 2013.
i. The Company has not issued any bonus shares nor has it allotted shares without payment being received in cash in last 5 years immediately preceding year ended March 31, 2026 and March 31, 2025.
ii. There are no shares bought back by the Company in the last 5 years immediately preceding year ended March 31, 2026 and March 31, 2025.
iii. Shares reserved for issue under options:
For information relating to Employees Stock Options Scheme, 2019 and Employees Stock Options Scheme, 2024 including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, refer note 29.
iv. All other notes mandated by Schedule III are not applicable to the Company.
Securities premium account - This represents the amount received in excess of par value of equity shares.
General reserve - Represents amounts transferred from retained earnings in earlier years as per the requirements of the erstwhile Companies Act 1956.
Share based payment reserve - The share based payment reserve is used to recognise the grant date fair value of options issued to employees under Employee stock option plan.
Retained earnings - Retained earnings are the profits/(loss) that the company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement gain/(loss) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.
Effective 21 November 2025, The Government of India has consolidated multiple existing labour legislations into a unified framework comprising of four Labour Codes collectively referred to as the 'New Labour Codes'. Under Ind AS 19, changes to employee benefit plans arising from legislative amendments constitute a plan amendment, requiring recognition of past service cost immediately in the Statement of Profit and Loss.
The Company has assessed and disclosed the incremental impact of the New Labour Codes of H 585.33 Lakhs on standalone financial statements, primarily arising due to change in definition of wages and the recognition of such past service cost. Considering regulatory-driven and non-recurring nature of this impact, the Company has presented such past service cost as ""Exceptional Items"" in the standalone financial statements for the year ended March 31, 2026. Government of India has notified final rules to the New Labour Codes on May 8, 2026 however state rules are yet to be notified. The Company is in process of assessing the impact, if any, of Central Rules notified and continues to monitor the finalisation of State Rules and clarifications from the Government on other aspects of the Labour Codes and would provide appropriate accounting effect on the basis of such developments as needed.
The Company operates a defined benefit gratuity plan for its employees. Under the gratuity plan, every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. For certain class of employees, the gratuity will be paid at 30 days salary (last drawn salary) for each completed year of service post their completion of 20 years of employment. The plan is funded with LIC by the Company.
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.
The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss, the funded status and amounts recognised in balance sheet for the plan.
The above sensitivity analysis is based on a change in assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated with the Projected Unit Credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis didn't change compared to the previous periods.
The average duration of the defined benefit plan obligation at the end of the year is 7.92 years (March 31, 2025: 8.25 years)
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below : Asset volatility:
The Plan liabilities are calculated using a discount rate set with reference to bond yields. If plan assets underperform, this yield will create a deficit. The plan assets are maintained with fund manager LIC of India. They are subject to interest rate risk which is managed by the insurer.
A decrease in bond yields will increase plan liabilities.
All plan assets are maintained in a trust fund managed by a public sector insurer viz; Life Insurance Corporation (LIC) of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.
The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also, interest rate and inflation risk are taken care of.
Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management's discretion may lead to uncertainties in estimating this risk.
Increases in life expectancy of employee will result in an increase in the plan liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.
Outstanding balances at the end of the year are unsecured and interest free and settlement occurs in cash.
The transactions with related parties (excluding relatives of KMPs) includes managerial remuneration which is determined based on market conditions and is approved by Nomination and Remuneration Committee of the Company.
#Share-based payments include the perquisite value of stock incentives exercised during the year, determined in accordance with provisions of Income Tax Act, 1961.
In case of transactions with related parties during the year, the amounts are exclusive of applicable taxes.
The expected life of the share options is based on the historical data and current expectations and is not necessarily indicative of exercise pattern that may occur. The expected volatility reflects the assumptions that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.
Compensation expense arising from equity-settled employee share based payment plans for the year ended March 31, 2026 amounted to H467.23 Lakhs (March 31, 2025: H 601.01 Lakhs). The liability for employee stock options outstanding as at March 31, 2026 is H 1,428.37 Lakhs (March 31, 2025: H 1,730.34 Lakhs).
Compensation expense arising from equity-settled employee share based payment plans for the year ended March 31, 2026 amounted to H 121.38 Lakhs (March 31, 2025: H Nil). The liability for employee stock options outstanding as at March 31, 2026 is H 121.38 Lakhs (March 31, 2025: H Nil).
30 Capital and other commitments
i) The estimated amounts of contracts remaining to be executed on capital account and not provided for are H 1,325.85 Lakhs (net of advances: H 122.86 Lakhs) [March 31, 2025: H 13,428.39 Lakhs (net of advances: H 1,247.89 Lakhs)]
ii) The Company has guaranteed purchase of certain quantities of tinting machine and gyro shakers. In the event the Company is not able to make the purchases, it will be liable to compensate the manufacturer with a fee equivalent to the manufacturer's price towards inventory of components including the customized front panel TAB, keyboard, mouse and USB hub with cabling.
iii) For commitments relating to lease arrangements, refer note 35.
Sales tax/Value added tax/ Income tax/ Excise and service tax /Goods and services tax/ Building tax dues comprise of demand from Indian tax authorities for payment of additional tax in relation to various tax matters. The Company is contesting the demands and the management, including its tax advisors, believe its position will likely be upheld in appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management based on its assessment, believes that the outcome of these contingencies will be favourable, but not probable, and accordingly no provision for liability has been recognized in the financial statements.
*excludes interest and penalty (if any), thereon.
The Company has issued bank guarantee in FY 2023-24 of H 1,800 Lakhs in favour of the bankers of subsidiary, for credit facilities availed by the subsidiary Apple Chemie India Private Limited which is outstanding as on March 31, 2026 (March 31, 2025: H 1,800 Lakhs).
Amount due to Micro enterprises and small enterprises are disclosed on the basis of information available with the Company regarding status of Micro enterprises and small enterprises.
33 Segment reporting
The Board of Directors of the Company performs the function of allotment of resources and assessment of performance of the Company. Considering the level of activities performed, frequency of their meetings and level of finality of their decisions, the Company has identified that Chief Operating Decision Maker function is being performed by the Managing Director. The financial information presented to the Board and Managing Director in the context of results and for the purposes of approving the annual operating plan is on a consolidated basis for various products of the Company. As the Company's business activity falls within a single business segment viz. 'Paints' and the sales substantially being in the domestic market, the financial statements are reflective of the information required by Ind AS 108 "Operating Segments”.
For details on geographical distribution of revenue, refer note 18.
All non-current assets of the Company are located within India.
34 Operating leases
The Company has given tinting machines and gyro shakers on operating lease to its dealers. The Company enters into 5 years cancellable lease agreements. The minimum aggregate lease payments to be received in future is considered as H Nil. Accordingly, the disclosure of minimum lease payments receivable at the Balance sheet date is not made. The amount received from the dealers in nature of nonrefundable deposits (representing lease income received in advance) is deferred and amortised over the period of lease. The initial direct cost relating to acquisition of tinting machines and gyro shakers is capitalised. The information on gross amount of leased asset, depreciation and impairment is given in note 3.1(i).
35 Leases
The Company has lease contracts mainly for land and buildings (godowns and depots) used for factory operations and storage of goods. Leases of such depots /godowns generally have lease terms between 3 and 10 years. The Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets.
Leasehold land has lease term between 83 to 99 years.
For details on Right-of-use assets, refer note 3.2
The Company had total cash outflows for leases of H 919.68 Lakhs in March 31, 2026 (H 882.09 Lakhs in March 31, 2025). The Company also had non-cash additions to right-of-use assets and lease liabilities of H 658.05 Lakhs in March 31, 2026 (H 990.44 Lakhs in March 31, 2025). The future cash outflows relating to leases are disclosed in note 38.
The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company's business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised.
There are no variable lease payment terms.
The total lease payment for the leasehold land rights for the lease period has already been made. Therefore the Company is not required to create any corresponding liabilities.
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
There has been no transfer among Level 1, Level 2 and Level 3 during the year.
The fairvalue ofthe financial assets and liabilities is included at the amount atwhich the instrument could be exchanged in a currenttransaction between willing parties, otherthan ina forcedor liquidation sale. Thefollowing methodsand assumptionswere usedtoestimatethe fairvalues: The fair values of the quoted mutual funds are based on NAV obtained from asset management companies at the reporting date.
The finance department of the Company includes a team that oversees the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values.
External valuers are involved for valuation of significant assets, such as unquoted financials assets. Involvement of external valuers is decided by the finance team. Selection criteria includes market knowledge, reputation, independence and whether professional standards are maintained. The Finance team decides, after discussions with the Company's external valuers, which valuation techniques and inputs to use for each case.
Changes in level 3 fair values are analysed at the end of each reporting period during the valuation discussion between the valuation team and external valuer. As part of this discussion the team presents a report that explains the reason for the fair value movements.
37 Capital management
The Company's objective for capital management is to maximise shareholders value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirements based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. No changes were made in the objectives, policies or processes during the year ended March 31, 2026. Capital represents equity attributable to equity holders of the Company. The Company monitors capital using a gearing ratio, which is net debt/obligation divided by total equity. The Company's policy is to keep the gearing ratio optimum.
38 Financial risk management objectives and policies
The Company's principal financial liabilities comprise lease liabilities and trade payables and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade receivables and other receivables, and cash and cash equivalents that are derived directly from its operations. The Company also holds investments in mutual funds.
The Company is exposed to market risk, credit risk, price risk, liquidity risk and interest risk. The Company's senior management oversees the management of these risks. The Company's senior management ensures that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. The Managing Director and the Board of Directors review and agree policies for managing each of these risks, which are summarised below.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include deposits and investments.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the interest rate risk as there are no floating interest rates on financial assets and no debt obligations.
The Company invests its surplus funds in mutual funds which are linked to equity/debt markets. The Company is exposed to price risk for investments that are classified as fair value through profit and loss. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification and investment in the portfolio is done in accordance with Company's investment policy approved by the Board of Directors.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Generally, the Company's exposure to the risk of changes in the market interest rates primarily relate to the Company's debt obligations with the floating interest rates. The Company does not have any borrowings in the current year as well as previous year.
The company is engaged in international trade and thereby exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company's functional currency (H). The Company's exposure to foreign currency arises from short term receivables and payables where fluctuations in the foreign exchange rates are generally not significant and consequently limiting the Company's exposure.
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments, deposits with banks and financial institutions and other financial instruments.
Customer credit risk is managed by the Company's established policies, procedures and controls relating to customer credit risk management. Credit quality of a customer is assessed based on an individual credit limits and are defined in accordance with management's assessment of the customer. Outstanding customer receivables are regularly monitored. The concentration of credit risk is limited due to the fact that the customer base is large. There is no customer representing more than 5% of the total balance of trade receivables.
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.
The ageing of trade receivable as on balance sheet date is given below. The age analysis has been considered from the date when the invoices were due for payment.
Credit risk from balances with banks, mutual funds is managed by the management in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties based on limits defined by the management. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments. The Company's maximum exposure to credit risk for financial instruments (mutual funds), bank balances and deposits as at March 31, 2026 and March 31, 2025 is the carrying amounts as mentioned in note 4 and 8.
Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset. The Company closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows from its current operations, which in addition to the available cash and cash equivalents, will provide liquidity.
The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The carrying amounts are assumed to be reasonable approximation of fair value.
The Ministry of Corporate Affairs vide notification dated 7 May 2025 and 13 August 2025 notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 and Companies (Indian Accounting Standards) Second Amendment Rules, 2025, respectively, which amended certain accounting standards (see below), and are effective for annual reporting periods beginning on or after 1 April 2025:
(a) Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants.
(b) Supplier Finance Arrangements.
(c) International Tax Reform - Pillar Two Model Rules.
(d) Lack of Exchangeability.
These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to Ind AS 1.
(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) (formally the Benami Transaction (Prohibition) Act, 1988 (45 of 1988)) and Rules made there under.
(ii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the current or previous financial year.
(v) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall:
(a) d irectly 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
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries:
(vi) The Company has not received any funds from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) d irectly 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
41 Other statutory information: (Contd..)
(vii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
(viii) There were no payments made by the Company to political parties during current or previous year.
(ix) The Company does not have any borrowings from banks or financial institutions or government or government authorities or any other lender.
(x) There are no loans and advances in the nature of loans granted to promoters, directors, key managerial personnel and related parties as at March 31, 2026 and March 31, 2025.
(xi) The Company does not have any such transaction which is not recorded in the books of account 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.
(xii) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
(xiii) The Company has no borrowings from bank or financial institutions or government or government authorities or any lender on the basis of securities of current assets during the current or previous financial year.
(xiv) The Company has complied with the number of layers prescribed under the Companies Act, 2013 read with the Companies (Restrictions on number of layers) Rules, 2017.
42 Transactions with companies struck off:
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.