The recoverable amount of this CGU for impairment testing is determined based on vaiue-in-use calculations which uses cash flow projections based on financial budgets approved by management covering a five-year period (Previous year - five year), as the Company believes this to be the most appropriate timescale for reviewing and considering annual performance before applying a fixed terminal value multiple to the final cash flows.

As at 31^st March, 2024 and 31^st March, 2023, goodwill in respect of Bath Fittings Business was not impaired.

(B) Impairment assessment of Brand with indefinite useful life

During the year, the Company has purchased brand of "Weatherseal" and the Management believes that the brand has indefinite useful life. Accordingly, it has been tested for impairment.

The recoverable amount of brand is arrived at using 'value in use' as per the projections based on financial budget of Weatherseal Fenestration Private Limited. The brand is not impaired as at 31^st March 2024.

Management believes that any reasonable possible change in any of these assumptions would not cause the carrying amount to exceed its recoverable amount.

Discount rates - Management estimates discount rates using pre-tax rates that reflect current market assessment of the risks specific to the CGU, taking into consideration the time value of money and individual risks of the underlying assets that

have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segments and is derived from its weighted average cost of capital.

Growth rates - The growth rates are based on industry growth forecasts. Management determines the budgeted growth rates based on past performance and its expectations on demand condition. The weighted average growth rates used are consistent with industry reports.

b) Terms/rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a face value of T 1 per share. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Proposed dividend for FY 2023-24 is ? 28.15 per equity share of face value of ? 1 each amounting to ? 2700.14 crores

(Previous year - T 21.25 per equity share of face value of T 1 each), subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability. If approved, the total dividend (interim and final dividend) for the financial year 2023-24 will be ? 33.30 (Rupees Thirty Three and paise thirty only) per equity share

of the face value of T 1 each (T 25.65 per equity share of the face value of T 1 each was paid as total dividend for the previous year).

As per the Companies Act 2013, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. However no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the

shareholders.

Description of nature and purpose of each reserve :Capital Reserve -

a. Capital reserve of ? 5000/- was created on merger of ' Pentasia Chemicals Ltd ' with the Company, pursuant to scheme of Rehabilitation-cum-Merger sanctioned by Board of Industrial and Financial Reconstruction in the financial year 1995-96.

b. Capital Reserve of ? 44.38 crores was created on merger of Asian Paints (International) Limited, Mauritius, wholly owned subsidiary of the Company, with the Company as per the order passed by the National Company Law Tribunal.

Capital Redemption Reserve - This reserve was created for redemption of preference shares in the financial year 1989-90. The preference shares were redeemed in the financial year 1990-91.

General Reserve - General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Remeasurement of defined benefit plans - This represents the cumulative gains and losses arising on the remeasurement of defined benefit plans in accordance with Ind AS 19 that have been recognised in other comprehensive income.

Share based payment reserve - This represents the fair value of the stock options granted by the Company under the 2021 Plan accumulated over the vesting period. The reserve will be utilized on exercise of the options.

Treasury shares - This represents cost incurred by the Company to purchase its own equity shares from secondary market through the Company's ESOP trust for issuing the shares to the eligible employees on exercise of stock options granted

under the 2021 Plan.

Trust Reserve - This represents net income of the ESOP trust.

Debt instruments through OCI - This represents the cumulative gains and losses arising on the revaluation of debt instruments measured at FVTOCI that have been recognised in other comprehensive income, net of amounts reclassified to profit or loss when such assets are disposed off and impairment losses on such instruments.

Equity instruments through OCI - This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at FVTOCI, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

Retained earnings - This represents surplus of profit and loss account.

These provisions represent estimates made for probable claims arising out of litigations/disputes pending with authorities under excise duty and sales tax. The probability and the timing of the outflow with regard to these matters depend on the final outcome of the litigations/disputes. Hence, the Company is not able to reasonably ascertain the timing of the outflow. The Company does not expect any reimbursements in respect of these provisions.

Provision for Statutory Liabilities includes :

*Excise provisions made towards matters disputed at various appellate levels.

**Sales tax provisions made towards non receipt of C Forms and other matters disputed at various appellate levels..

(ii) Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the Financial Statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

(iii) Invesments in debentures for bonds measured at FVTOCI

The debentures or bonds are fair valued using various market observable inputs.

(iv) Gross obligation towards Earnout

The gross obligation is valued using agreed financial milestones of Obgenix Software Private Limited for the previous

year 2022-23 as per the share purchase agreement. The value is not exposed to any variability.

a) Interest Rate Risk

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. Since the Company has insignificant interest bearing borrowings, the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.

NOTE 29(C) : FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES

The Company's financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, trade receivables and other receivables and financial liabilities comprise mainly of borrowings, trade payables and other payables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors ('Board') oversee the

management of these financial risks through its Risk Management Committee. The Risk Management Policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Company's approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company's management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company's financial performance. The Board has taken all necessary actions to mitigate the risks identified basis the information and situation present.

The following disclosures summarize the Company's exposure to financial risks and information regarding use of derivatives

employed to manage exposures to such risks. Quantitative sensitivity analyses have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.

1) Market Risk

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 risks: interest rate risk, currency risk and other price risk.

Financial instruments affected by market risk include borrowings, investments, trade payables, trade receivables and derivative financial instruments.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to

changes in foreign exchange rates. The Company enters into forward exchange contracts with average maturity of less than one month to hedge against its foreign currency exposures relating to the recognised underlying liabilities and firm commitments. The Company's policy is to hedge its exposures above from recognised liabilities

and firm commitments that fall due in 90 days. The Company does not enter into any derivative instruments for trading or speculative purposes.

c) Other Price Risk

i) Equity / Investment Risk

Equity / Investment risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Equity / Investment risk arises from financial assets such as investments in equity instruments and bonds. The Company is exposed to Equity risk arising mainly from investments in equity instruments recognised at FVTOCI. As at 31^st March, 2024, the carrying value of such equity instruments recognised at FVTOCI amounts to ? 594.08 crores (Previous year - ? 586.32 crores). The details of such investments in equity instruments are given in Note 5(II)(A)(b).

The Company is also exposed to Investment risk arising from investments in bonds and debentures

recognised at FVTOCI. As at 31^st March, 2024, the carrying value of such instruments recognised at FVTOCI amounts to ? 420.80 crores (Previous year - ? 243.23 crores). These being debt instruments, the exposure to

risk of changes in market rates is minimal. The details of such investments in bonds and debentures are given in Note 5(I)(C) & 5(II)(A).

The Company is mainly exposed to change in market rates of its investments in equity investments

recognised at FVTOCI. A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below :

If the equity prices had been higher/lower by 10% from the market prices existing as at 31^st March, 2024,

Other Comprehensive Income for the year ended 31^st March, 2024 would increase by ? 52.61 crores (Previous year - ? 51.80 crores) and decrease by ? 52.61 crores (Previous year - ? 51.80 crores) respectively with a corresponding increase/decrease in Total Equity of the Company as at 31^st March, 2024. 10% represents management's assessment of reasonably possible change in equity prices.

(ii) Commodity rate risk

Material cost is the largest cost component for the Company, thus exposing it to the risk of price Auctions

based on the supply and demand conditions of those materials. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. The Company has put in place a mix of long-term and short-term mitigation plans. The long-term price view consisted of identifying single vendor dependency and finding alternate materials or vendors for the same. The Company also has a robust process of estimating the prices at a quarterly frequency, analysing deviations, if any, and taking short-term corrective measures in addition to altering the outlook for the long-term, if required. The Company also leverages its financial resources to modify the inventory levels as required keeping in mind the price outlook in the near term. Similarly, the Company modifies the contract period in negotiations with the vendors to either lock in prices or to keep them open based on the expected price movements. During the year ended 31^st March 2024 and 31^st March 2023, the Company had not entered into any derivative contracts to hedge exposure to fluctuations in commodity prices.

2) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks and other receivables. The Company's exposure to credit risk is disclosed in note 5 (except equity shares, bonds and debentures) 6, 10,11A and 11B.

The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company's exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.

Credit risk arising from investment in mutual funds, derivative financial instruments, term deposits and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

The average credit period ranges from 30 to 45 days on sales of products. Credit risk arising from trade receivables is managed in accordance with the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified. 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.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision

- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met;

- Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows;

- Maintaining diversified credit lines.

The table below analyses financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

3) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments

associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company's exposure to liquidity risk arises

primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

The Company believes that its liquidity position (? 5.077.83 crores as at 31^st March, 2024 (Previous Year? 4,269.98 Crores)), anticipated future internally generated funds from operations, and its fully available revolving undrawn credit facility will enable it to meet its future known obligations in the ordinary course of business.

However, if liquidity needs were to arise, the Company believes it has access to financing arrangements, value of unencumbered assets, which should enable it to meet its ongoing capital, operating, and other liquidity requirements.

The liquidity position of the Company mentioned above, includes :

i) Cash and cash equivalents as disclosed in the Statement of Cash Flows

ii) Current/ Non-Current term deposits as disclosed in Other Financial Assets and Other Balances with Banks

iii) Investments in debentures or bonds (including interest accrued on the same)

The Company's liquidity management process as monitored by management, includes :

NOTE 29(D) : CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

As at 31^st March, 2024 and 31^st March, 2023, the Company has only one class of equity shares and has low debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans.

*Towards custom duty and IGST for capital goods imported under Manufacturing & Other operation in Warehouse Regulation (MOOWR) scheme against which the Company has executed a bond which is three times of the custom duty calculated at the time of import. The amount and timing of liability towards such custom duty and IGST will crystalize at the time of filing of ex-bond bill of entry at the time of removal of goods from the bonded warehouse.

The above claims are pending before various Appellate Authorities. The management, including its advisors, expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company's financial statements.

It is not practicable for the Comapny to estimate the timings of cash outflows, if any, in respect of the pending resolution of the respective proceedings as it is determinable only on receipt of judgements/ decisions pending with various forums/ authorities. The Company does not expect any reimbursements in respect of the contingent liabilities.

NOTE 34 : EMPLOYEE BENEFITS (1) Post-employment benefits* :(a) Defined benefit gratuity plan (Funded)

The Company has defined benefit gratuity plan for its employees, which requires contribution to be made to a separately administered fund. It is governed by the Payment of Gratuity Act, 1972. Under the Act, all employees who have completed five years of service are entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age. There is no separate contribution by the employee in the fund. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees is responsible for the administration of the plan assets including investment of the funds in accordance with the norms prescribed by the Government of India.

Each year, the Board of T rustees and the Company review the level of funding in the T rust. Such a review includes the asset-liability matching strategy and assessment of the investment risk. The Company (employer) contributes

to the fund based on the results of this annual review and ensures that the trust is adequately funded. Generally, it aims to have a portfolio mix of sovereign debt instruments, debt instruments of Corporates and equity

instruments. The Company aims to keep annual contributions relatively stable at a level such that no significant plan deficits (based on valuation performed) will arise.

Every two years an Asset-Liability-Matching study is performed in which the consequences of the investments are

analysed in terms of risk and return profiles. The Board of Trustees, based on the study, take appropriate decisions on the duration of instruments in which investments are done. As per the latest study, there is no Asset-Liability-

Mismatch. There has been no change in the process used by the Company to manage its risks from prior periods.

As the plan assets include significant investments in quoted debt and equity instruments, the Company is exposed

to the risk of impacts arising from fluctuation in interest rates and risks associated with equity market.

Fair value of the Company's own transferable financial instruments held as plan assets : NIL.

(b) Defined benefit pension plan (Unfunded)

The Company operates a defined benefit pension plan for certain specified employees and is payable upon the employee satisfying certain conditions, as approved by the board of directors.

(c) Defined benefit post-retirement medical benefit plan (Unfunded)

The Company operates a defined post retirement medical benefit plan for certain specified employees and payable upon the employee satisfying certain conditions.

Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment Risk These Plans invest in long term debt instruments such as Government securities and highly rated

corporate bonds. The valuation of such long term debt instrument is inversely proportionate to the interest rate movements. There is risk of volatility in asset values due to market fluctuations and impairment of assets due to credit losses.

Interest Risk The present value of the defined benefit liability is calculated using a discount rate which is

determined by reference to market yields at the end of the reporting period on Government securities. A decrease in yields will increase the fund liabilities and vice-versa.

Longevity Risk The present value of the defined benefit liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary Risk The present value of the defined benefit liability is calculated by reference to the future salaries

of plan participants. As such, an increase in salary of the plan participants will increase the plan's liability.

The most recent actuarial valuation of the plan assets and the present value of defined obligation were carried out as at 31^st March, 2024 by M/s Transvalue Consultants.

* GRI 201-3 - Defined benefit plan obligations and other retirement plans

The sensitivity analyses presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting

period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the Balance Sheet.

The Company expects to make a contribution of ? 22.93 crores (Previous year - ? 26.77 crores) to the defined

benefit plans during the next financial year.

(d) Provident Fund

The Provident Fund assets and liabilities are managed by 'Asian Paints Office Provident Fund' and 'Asian Paints Factory Employees Provident Fund' in line with The Employees' Provident Fund and Miscellaneous Provisions Act,

1952.

The plan guarantees minimum interest at the rate notified by the Provident Fund Authorities. The contribution

by the employer and employee together with the interest accumulated thereon are payable to employees at the time of separation from the Company or retirement, whichever is earlier. The benefit vests immediately on rendering of the services by the employee. In terms of the guidance note issued by the Institute of Actuaries of

India for measurement of provident fund liabilities, the actuary has provided a valuation of provident fund liability and based on the assumptions provided below, there is no shortfall as at 31^st March, 2024.

Participation by all employees in provident funds plans is mandatory. Contribution to Provident Fund is made @

12% of salary (computed in accordance with the prevalent regulations) by the employee. Similarly, the Company also contributes to the Provident Fund specified percentage of salary as per the prevalent regulations. Employees have the option to voluntarily contribute a higher amount.

The Company contributed ? 25.42 crores (Previous Year - ? 21.26 crores) towards Asian Paints Office Provident Fund during the year ended 31^st March 2024. The Company contributed ? 13.82 crores (Previous Year - ? 13.44

crores) towards Asian Paints Factory Employees Provident Fund during the year ended 31^st March, 2024.

shall be determined by the Nomination and Remuneration Committee (Administrator of the 2021 Plan) in consultation

with Managing Director & CEO and based on employee's grade, performance rating and such other criteria as may be considered appropriate. The employees shall be entitled to receive one equity share of the Company on exercise of each stock option, subject to performance of the employees and continuation of employment over the vesting period.

The exercise price for stock options granted are at a discount of 50% to the Reference Share Price (the average of the daily high and low of the volume weighted average prices of the Shares quoted on a recognised stock exchange during the 22 trading days preceding the day on which the grant is made) of the shares of the Company as defined under 2021 Plan.

Further, the 2021 Plan replaced the existing Deferred Incentive Scheme (which provided for deferred cash pay-outs

based on performance of the employees and satisfaction of vesting conditions). Pursuant to launch of 2021 Plan, the eligible employees were given option to convert existing deferred incentive benefit for FY 2020-21 into ESOPs. Accordingly, stock options were granted to those employees opting for ESOPs.

The Administrator approved secondary purchase of shares equivalent to the options granted in August 2021 through Asian Paints Employees Stock Ownership Trust ("ESOP Trust" or "Trust") which is shown as treasury shares in the

Statement of Changes in Equity.

NOTE 36 : ACQUISITIONS AND INCORPORATIONS(a) Acquisition of Obgenix Software Private Limited:

In the previous year, the Company acquired 49% of the equity share capital of Obgenix Software Private Limited (popularly known by the brand name of 'White Teak') along with an earn out, payable after a year, subject to achievement of mutually agreed financial milestones. On 31^st March, 2023, fair value of earn out was f 58.97 crores. During the year, on 23^rd June, 2023, the Company has further acquired 11% of equity share capital of White Teak from the existing shareholders of White Teak for a cash consideration of f 53.77 crores. Consequently, White teak has become a subsidiary of the Company. On such date, the fair value of earnout stood at f 59.45 crores which was paid to the promoters of White Teak. Fair valuation loss of f 0.48 crores (Previous year - f 21.26 crores) has been recognised in the Statement of Profit & Loss towards earnout paid.

On 31^st March, 2024, fair value of the derivative asset/ liability (net) is f 35.09 crores (previous year - f 3.85 crores). Fair valuation impact of f 41.21 crores (Previous year - f 5.17 crores) is recognised in the Statement of Profit & Loss for the

year ended 31^st March, 2024 towards derivative contract.

(b) Acquisition of Harind Chemicals and Pharmaceuticals Private Limited:

On 20^th October 2022, the Company had entered into Share Purchase Agreements and other definitive agreements with shareholders of Harind Chemicals and Pharmaceuticals Private Limited ('Harind'), for the acquisition of stake in Harind, in tranches, subject to fulfilment of certain conditions precedent. Harind is a specialty chemicals company engaged in the business of nanotechnology-based research, manufacturing, and sale of a range of additives and specialized coatings.

Upon fulfilment of the conditions precedent for acquisition of first tranche, the Company has acquired 51% of the

equity share capital of Harind for a consideration of f 14.28 crores on 14^th February, 2024. Accordingly, Harind and Nova Surface-Care Centre Private Limited, a wholly owned subsidiary of Harind, have become subsidiaries of the Company. Further, the Company has agreed to acquire 39% further stake in Harind in in tranches, over the next 3 years. On 31^st March, 2024, the fair value of such derivative liability towards the forward contracts is f 11.90 crores.

(c) Equity infusion in Weatherseal Fenestration Private Limited:

In the previous year, the Company subscribed to 51% of the equity share capital of Weatherseal Fenestration Private Limited ("Weatherseal") for a cash consideration of f 18.80 crores on 14^th June, 2022. Accordingly, Weatherseal became a subsidiary of the Company. Further, the Company had agreed to acquire further stake of 23.9% in Weatherseal Fenestration from its promoter shareholders, in a staggered manner. The Company had also entered into a put contract for acquisition of 25.1% stake in Weatherseal.

On 31^st March, 2024, the fair value of such derivative asset / liability (net) towards forward and put contracts is f 6.27 crores (Previous year - f 2.25 crores). Fair valuation impact of f 8.52 crores (Previous year - f 0.39 crores) is recognised

in the Statement of Profit & Loss for the year ended 31^st March, 2024 towards derivative contract.

(d) Equity Infusion in Asian Paints (Polymers) Limited :

On 11^th January, 2023, the Company incorporated a wholly owned subsidiary named Asian Paints (Polymers) Private Limited ('APPPL') and invested f 200 crores in equity share capital of APPPL in the previous year.

On 26^th June, 2023, the Company has further infused f 100 crores as equity share capital into APPL. On 31^st March, 2024, the equity share capital of APPPL is f 300 crores.

(e) Incorporation of Asian White Cement Holding Limited:

On 2^nd May, 2023, an investment holding subsidiary company, namely, Asian White Cement Holding Limited ('AWCHL') was incorporated in Dubai International Financial Centre, United Arab Emirates (UAE), for the purpose of setting up an operating company in Fujairah, UAE. The Company holds 70% of equity share capital in AWCHL and has infused total equity share capital of f 94.73 crores during the year.

(f) Amalgamation of Sleek International Private Limited and Maxbhumi Developers Limited:

The Board of Directors at their meeting held on 28^th March 2024 has approved the Scheme of Amalgamation ('the Scheme') of Maxbhumi Developers Limited and Sleek International Private Limited, wholly owned subsidiaries of Asian Paints Limited (the Company) with the Company in accordance with the provisions of the Companies Act, 2013

and other applicable laws with the appointed date of 1^st April 2024. The Scheme is subject to necessary statutory and regulatory approvals, including approval of the Hon'ble National Company Law Tribunal, Mumbai. There is no impact of the Scheme on the Standalone Financial Statements of the Company.

Terms and conditions of transactions with related parties :

1. The Company has been entering into transactions with related parties for its business purposes. The process

followed for entering into transactions with related party is same as followed for unrelated party. Vendors are selected competitively having regard to strict adherence to quality, timely servicing and cost advantage. Further related party vendors provide additional advantages in terms of:

(a) Supplying products primarily to the Company,

(b) Advanced and innovative technology,

(c) Customization of products to suit the Company's specific requirements, and

(d) Enhancement of the Company's purchase cycle and assurance of just in time supply with resultant benefits -notably on working capital.

2 . The purchases from and sales to related parties are made on terms equivalent to and those applicable to all unrelated parties on arm's length transactions. Outstanding balances payable and receivable at the year-end are unsecured, interest free and will be settled in cash.

3. During the year ended 31^st March, 2024, the Company has recognised an amount of ? 0.09 crores due from its subsidiaries and associates (Previous year - ? 0.22 crores) as provision for doubtful receivables in Statement of Profit and Loss. As at 31^st March, 2024, the provision for doubtful receivables from its subsidiaries and associates is ? 6.99 crores (Previous year - ? 7.31 crores). The Company has recovered an amount of ? 0.37 crores out of provision for doubtful receivables provided in earlier years.

During the year ended 31^st March, 2024, the Company has written off an amount of ? 0.04 crores against doubtful receivables (Previous year - NIL).

The assessment of receivables is undertaken in each financial year through examining the financial position of related parties, the market and regulatory environment in which related parties operate and is in accordance with the accounting policy of the Company.

G. Nature of CSR activities undertaken by the Company

The CSR initiatives of the Company aim towards inclusive development of the communities largely around the vicinity

of its plants and registered office and at the same time ensure environmental protection through a range of structured interventions in the areas of :

(i) creating employability & enhancing the dignity of the painter/ carpenter/ plumber community

(ii) focus on water conservation, replenishment and recharge

(iii) enabling access to quality primary health care services

(iv) disaster relief measures.

(ii) The Company does not have any benami property held in its name. No proceedings have been initiated on or are

pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(iv) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(v) Utilisation of borrowed funds and share premium

I The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

II The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding

Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vi) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act,

1961 (such as search or survey), that has not been recorded in the books of account.

(vii) The Company has not traded or invested in crypto currency or virtual currency during the year.

(viii) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

NOTE 41 :

A competitor of the Company had filed a complaint with the Competition Commission of India (CCI) alleging the Company to be hindering its entry in the decorative paints market by virtue of unfair use of the Company's position of dominance

in the market. The CCI had passed a prima facie Order dated 14^th January, 2020 directing the Director General ("DG") to conduct an investigation against the Company under the provisions of the Competition Act, 2002. The DG submitted a

detailed report to the CCI. Based on the findings of the DG's report and after hearing both the parties, the CCI passed a favourable order on 8^th September, 2022 dismissing the allegations relating to abuse of dominance and anti-competitive agreements made by the competitor. The competitor has now filed an appeal against CCI's order before the National Company Law Appellate Tribunal. The said appeal is pending for hearing.

NOTE 42 :

The financial statements are approved for issue by the Audit Committee and the Board of Directors at their respective meetings conducted on 09^th May, 2024.