a) Terms / rights attached to equity shares :
Share Capital comprises only equity shares of Rs 2/- each only.
The equity shares rank pari passu in all respects including right to
dividend, issue of new shares and voting rights.
b) Shares reserved for issue under options Refer Note 45 for details.
* Refer Note 47
a. Cash Credit are secured by hypothecation of stock-in-trade and book
debts and repayable on demand.
1. CONTINGENT LIABILITIES As at As at
2012 31st March,
Rs Mn Rs Mn
a) Claims against the Company not
acknowledged as debts :
The Sales Tax, Excise & Service Tax, Income Tax and Provident Fund
Authorities have made certain claims totalling Rs 333 (2010-11: Rs 263),
Rs 344 (2010-11: Rs 394), Rs 151 (2010-11: Rs 30) and Rs 1 (2010-11: Rs 1)
respectively in respect of earlier years. The Company has been advised
by its lawyers that none of the claims are tenable and is therefore
contesting the same. The future cash flows on account of the above
cannot be determined unless the judgement/decisions are received from
the ultimate judicial forums.
b) Corporate guarantees issued by the
Company to certain banks for loans
taken by some of its subsidiaries and
amount outstanding as at 31st March 2,069 1,759
c) Some of the fixed assets of the Company have been mortgaged by
deposit of title deeds in favour of Standard Chartered Bank towards
loan extended to its subsidiary, M/s Lusako Trading Limited.
Notes : a) The disclosures included above are limited to the extent
provided by the actuary.
b) The amounts for Other Defined Benefit Plans are below the
rounding off norm adopted by the Company (refer note 47) and hence the
disclosures as required under AS - 15 Employee Benefits have not
ii) During the year, the Company has recognised the following amounts
in the Statement of Profit and Loss for defined contribution plans :
- Provident and Family Pension Fund (applicable for certain eligible
employees whose provident fund accounts are maintained with the
Regional Provident Fund Commissioner - Rs 9 (2010-11: Rs 9)
- Superannuation Fund - Rs 20 (2010-11: Rs 19).
iii) Provident Fund for certain eligible employees is administered by
the Company through the Trust Berger Paints Provident Fund
(Covered) as per the provisions of the Employees'' Provident Funds
and Miscellaneous Provisions Act, 1952. The Rules for such a Trust
provide that in a provident fund set up by the employer, being exempt
under Section 17(1) of the said Act, any shortfall in the rate of
interest on contributions as compared to the rate approved by the
government for the Employees'' Provident Fund administered by the
Regional Provident Fund Commissioner is to be met by the employer. Such
a provident fund would in effect be a defined benefit plan in
accordance with the requirement of AS 15, Employee Benefits (Revised
The actuarial valuation conducted (as per the Guidance Note issued by
the Actuarial Society of India during the year) indicate that there is
no shortfall as on 31st March, 2012 based on the following assumptions:
2. SEGMENT INFORMATION
The Company has only one business segment, namely Paints with almost
the entire sales being made in the domestic market.
The Company''s leasing arrangement are in the nature of operating
leases which are not non cancellable. These are usually renewed
periodically by mutual consent. The rentals payable against these
arrangements appear under the head Rent in Note 28 to the Statement of
Profit and Loss - Rs 0 (2010-11: Rs 0)*.
* Refer Note 47
4. PREVIOUS YEAR COMPARATIVES
The financial statements for the year 31st March, 2011 had been
prepared as per pre-revised Schedule VI to the Companies Act, 1956
applicable for the year. The financial statements for year ended 31st
March, 2012, however, have been prepared as per Revised Schedule VI
notified under the Companies Act, 1956 applicable for financial
statements prepared for the financial year commencing April 1, 2011.
Accordingly, the previous year''s figures have been regrouped and
reclassified to confirm to current year''s classification.
5. All figures are in Rs Million. Figures marked with asterisks (*)
are below the rounding off norm adopted by the Company.