The tangible assets at the Company''s pigment manufacturing unit at
Kavesar and paint manufacturing units at Lower Parel and at Vatwa, have
been retired from active use. Accordingly, the fixed assets (other than
land) at those manufacturing units had been written down to Rs. 2.22
Million on the basis of valuation reports [balance provision for write
down in the value of fixed assets as at the end of the year Rs. 5.89
Million (2011-2012 Rs. 7.00 Million)]. During the year, an amount of
Rs. 1.11 Million (2011-2012 Rs. 1.30 Million) has been written back
consequent to charge on account of depreciation of an equal amount.
The Company has given on lease, Colour Dispenser to its dealers.
Particulars in respect of such leases are as follows:
(a) (i) The gross carrying amount and the accumulated depreciation at
the Balance Sheet date are Rs. 1551.85 Million (2011-2012 Rs. 1518.91
Million) and Rs. 1174.95 Million (2011-2012 Rs. 1266.25 Million)
(ii) Depreciation recognised in the Statement of Profit and Loss is Rs.
124.31 Million (2011-2012 Rs. 141.61 Million).
(b) The lease agreements are generally for a period of three years.
However, the corresponding lease rentals may be receivable for a
shorter period or may be waived off. The minimum aggregate lease
payments to be received in future is considered as Nil. Accordingly,
the disclosure of the present value of minimum lease payments
receivable at the Balance Sheet date is not made.
Figures in the brackets are the corresponding figures in respect of the
* Excludes commission and related contribution to Provident Fund and
Superannuation Fund thereon for the year but includes commission and
such related contribution thereon for the previous year paid in the
current year. Note: No amounts pertaining to related parties have been
provided for as doubtful debts. Also, no amounts have been written off
or written back during the year.
B. Defined Benefit Plan:
(a) Contribution to Provident Fund managed by the Trust set up by the
The Company has contributed Rs. 14.79 Million (2011-2012 Rs. 13.53
Million) to the Provident Fund Trust. In view of the issue of final
guidance note by the Actuarial Society of India for measurement of
provident fund liabilities, the actuary has provided valuation and
other related information for disclosure as required by Accounting
Standard (AS) 15 (Revised) on Employee Benefits notified by the
Companies (Accounting Standards) Rules, 2006 read with the guidance
issued by the Accounting Standard Board of the Institute of Chartered
Accountants of India.
vi. a. The estimates of rate of escalation in salary considered in
actuarial valuation takes into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
b. The discounting rate is considered based on market yield on
government bonds having currency and terms consistent with the currency
and terms of the post-employment benefit obligations.
c. Expected rate of return on assets is determined based on
expectation of the average long term rate of return expected on
investments of the fund during the estimated term of the obligations.
vii. The above information is certified by the actuary.
(c) Compensated Absences:
The decrease in provision for compensated absences for the year is Rs.
2.82 Million (2011-2012 decrease Rs. 0.90 Million)
Note 2: Segment Reporting
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 statement are reflective of the
information required by Accounting Standard 17 Segment Reporting,
notified under Companies (Accounting Standard) Rules, 2006.