S S HOTHNH M€HTN & COMPNNV S.C.O. 19, 15t f loor,Scctor I l,PanchkLrla-1 14 111Plrone : Ol72,506682t)E'mail : chd@sskrrin.com

s:kchrl@gma il.< onr

CHARTERED ACCOUNTANTS

Independent Auditor's Report

To the Members of 5BL Specialty Coatings Private Limited(Formerly known as Saboo Coatings Private Limitedl

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of SBL Specialty Coatings Private Limited(Formerly known as Saboo Coatings Private timited) ("the Company") which comprise the Balance Sheet

as at March 3L,2020, the Statement of Profit and Loss (including Other Comprehensive Income), thestatement of Cash flows and the Statement of Changes in Equity for the year then ended, and notes tothe financial statements, including a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, theaforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in

the manner so required and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (lndian Accounting Standards) Rules,

2015, as amended, ("lnd AS") and other accounting principles generally accepted in India, of the state ofaffairs of the Company as at March 31, 2020, its net profit a nd other com prehensive income, its cash flowsand changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section

1a3(10) of the Act. Our responsibilities under those Standards are further described in rhe Auditor'sResponsibilities for the Audit of the Finonciol Stotements section of our re po rt. We a re independent of theCompany in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India

ilCAl) together with the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical

responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emohasis of Matter

We draw attention to Note 41 to the financial statements, which describes the uncertainties and the

impact of Covid-19 pandemic on the Company's operations and results as assessed by the management.

Further, our attendance at the physical Inventory verification done by the management was impracticable

under the current lock-down restrictions imposed by the government and we have therefore, relled on

the related alternative audit procedures to obtain comfort over the existence and condition of inventory

at the year end. Our opinion is not modified in respect of this matter.

s. s. KofHnBt MCHfn & co PnNv

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the other information. The otherinformation comprises in the Board's Report including Annexures to the Board's Report, andShareholder's Information, but does not include the financial statements and our auditor's reportthereon.

Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation ldentified above when its becomes available and, in doing so, consider whether the otherinformation is materially inconsistent with the financial statements or our knowledge obtained in theaudit, or otherwise appears to be materially misstated.

Responsibility of Management for Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act withrespect to the preparation of these financial statements that give a true and fair view of the financialposition, financial performance, total comprehensive income, changes in equity and cash flows of theCompany in accordance with the lnd AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudenU and design, implementation and maintenanceof adequate internal financial controls, that were operating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement, whether due to fraudor error.

In preparing the financial statements, management is responsible for assessing the Company's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting un less ma nagement either intends to liquidate the Com pa ny or to cea se

operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

\*

s. s. t{ofHnnt MCHfn & coMPnNv

audit conducted in accordance with SAs will always detect a materlal misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs, we exercise professionaljudgment and maintain professional

skepticism throughout the audit. We also:

o ldentify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain a uditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, m isrepresentations, or the overrideof internal control.

. Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are

also responsible for expressing our opinion on whether the Company has adequate internalfinancial controls system in place and the operating effectiveness of such controls.

o Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company's ability to continue as a

going concern. lf we conclude that a material uncertainty exists, we are required to d raw attentionin our auditor's report to the related disclosures in the financial statements or, if such disclosures

are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtainedup to the date of our auditor's report. However, future events or conditions may cause theCompany to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and

events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in

aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of thefinancial statements may be influenced. We consider quantitative materiality and qualitative factors in (i)planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate theeffect of anv identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned

scope a nd timing of the a udit a nd significa nt aud it find ings, includ ing any significant deficie ncies in interna I

control that we identify during our audit.

s. s. HofHnnt MeHfn & coMPnNv

We also provide those charged with governance with a statement that we have complied with relevantethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2016 (the Order") issued by the CentralGovernment of India in terms of Section 143(11) of the Act, we give in "Annexure A" a statement onthe matters specified in paragraphs 3 and 4 of the Order.

As required by Section 143(3) of the Act, based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so faras it apoears from our examination of those books.

c) The Balance sheet, the Statement of Profit and Loss, the statement of changes in equity and Cash

Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the lnd A5 specified under Section133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on March 31, 2020 takenon record by the Board of Directors, none of the directors is disqualified as on March 31, 2020 frombeing appointed as a director in terms of section 164(2) of the Act.

f) Reporting with respect to the adequacy ofthe internalfinancialcontrols with reference to financialstatements of the Company and the operating effectiveness of such controls, refer to our separatereport in "An nexure 8".

g) With respect to the other matters to be included in the Auditor's Report in accordance with rnerequirements of the section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanation given to us, theCompany is private company, therefore section 197 of the Act is not applicable.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules, 20L4, in our opinion and to the best of ourinformation and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financial position in its financialstatement- Refer Note No. 36 to the financial statements

2.

s. s. KofHnnt MeHfn & <oMPnNy

(ii)

(iii)

The Company did not have any long-term contracts including derivative contracts for which there

were any material foreseeable losses;

There were no amount which were required to be transferred, to the lnvestor Education and

Protection Fund by the Company.

For S. S. Kothari Mehta & CompanyChartered Accountants

Firm registrationI)um ber: 022150N

Place: Delhi

Date: 16June-2020UDIN : 20098336AAAAAY2513

t. s. KotHail MCHn & COMPSNV

ANNEXURE .!f TO THE INDEPENOENT AUDITOR,S REPORT

The Annexure as referred to in paragraph (1).Report on other Legal & Regulatory Requirements' of our

lndependent Auditors neport to it einembers of 5eL specialty coatings Private Limited (Formerly known

as saboo coatings Private Litit";i;;;nancLl statements for the year ended March 31' 2020' we report

th at:

i. (a) The Company nas maintained proper records showing full particulars' including quantitative

' i-.tuitr.na situation of property' plants and equipment'

(b) The fixed assets have been physically verified bythemanagement according to the programme

of periodicarveritication,in pr'""a 'i".""..^i11111f::',r"i::iil.HIi'I'J;]l"ij',i:l::"fr';reasonable having regard to the size of the ComPanY anorne:::::;";';,;;*

iftu u"ul.

the program, fixed "'"t' nut'u *i physically verified by the management during the yeal '

(c) According to the information and explanations given to us and on the basis of our examination

of records, the company does not have any immovable property'

ii.Wehavebeenexp|ainedbythemanagem.entthatlh.einventory(eXceptmateriaIintransit,whichmateriaIreceived)hasbeenphysica||yverifiedat,"a,on"b|eintervaIandtheprocedureofphysicaIverification or tne inventorv iotto'"'j uv tt'' T:111':::jffi"ii:T:Jil";",i:*l$ffi: :lthe company and nature of its business' The discrepancl

inventorv as compared 1;;;;;;;";t were properlv dealt within books of accounts However'

due to covrD 19 p."d";;;;r'.,,"n0.n." ., tir" pnyri.ut Inventory verification done bY the

management *" 'to"tiittU'e under the current lock-down restrictions imposed by the

governmenttnO*"n"u"1i"'efore'reliedontherelatedalternativeauditprocedurestoobtarncomfort over the exlstence and condition of inventory at the year eno'

iii. The Company has not granted any loans' secured or unsecured to companies' firms' Limited Liability

Partnershipsorotherpti"""u""AintheRegistermaintainedundersectionlS9oftheCompanies Act n*"'oiiclY'ih" ;'*i'Ln' ot tftu" 3 (iii) (a) to (c) of the order are not applicable

to the ComPanY

iv. According to the information and explanations given to us' the Company has not made any loans

and invesrments u""";i;:;;;il'oir..ian trs .no 186 of the Act during the vear' Accordinslv'

proulrion of clause r(iv) of the order is not applicable to the Company'

v. The Company has nor accepted deposits during the y€ar and does not have any unclaimed deposits

as at March 31, 20ro .;;;;;;;;;;;. proviions of the clause 3(v) of the order are not applicable

to the comPanY'

vi. According to the information and explanations given to us' the Companies Act' 2013 has not

prescribed nlu,na"n, n." Ji.ost records under section 148(1) of the Act in respect of the prod ucti0 n

carriedoutbytnecompany.Therefore,provisionotttrectause3(vi)oftheorderisnotapp|icab|eto the comPanY'

5. S. t{OfHAnt MeHfn & coMPnNv

vii. (a) According to the information and explanations given to us and on the basis of examination ofthe records of the Company, the Company is generally regular in depositing undisputed statutorydues including Provident Fund, Employees'State Insurance, Income Tax, Goods and Service Tax,

Cess and any other material statutory dues with the appropriate authorities to the extentapplica ble.According to the information and explanation given to us, no undisputed amounts payable in

respect of above in arrears as at March 3L, 2OZO for a period of more than six months from the

date they became paya ble.

(b) According to the information and explanations given to us, there are no dues of Income Tax,

Provident Fund, Employees'State Insurance, Goods and Service Tax which have not been deposited

on account of any dispute, except as given below:

Name of thestatute

Nature ofdues

Period towhich amount

relates

Amount involved (Rs.

In Lakhs )*

Forum wheredispute is pending

lncome Tax

Act, 1961

Income Tax 1995-96 2.3t Pu nja b & Haryana

High Court

* Net of Payment

viii. In our opinion, on the basis of audit procedures and according to the information and explanationsgiven to us, the Company has not defaulted in repayment of borrowing to banks as at Balance Sheetd ate.

ix. According to the information and explanations given to us, the Company has not raised money byway of initial public offer or further public offer (including debt instruments) during the year. Thecompany has not taken any term loan during the financial year.

According to the information and explanations given to us, no instance of fraud by the Company oron the Company by its officers or employees has been noticed or reported during the year.

xi. According to the information and explanations given to us and based on our examination of therecords of the com pa ny, the provision of section 1.97 of the act related to manageria I remunerationis not applicable to the Company.

In our opinion and according to the information and explanations given to us, the Company is nota Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.

According to the information and explanations given to us and based on our examination of therecord ofthe Company, transactions with the related parties are in compliance with section 1.88 ofthe Act where applica ble a nd details of such transactions have been disclosed in the Ind AS financialstatements as required by the applicable Accounting standards.

x .

x t,

S. S. KO|HNBI MCH|N & COMPNNY

The provisions of the section u7 of the Act is not applicable to the com pa ny. Accordingly, provision

of the clause 3(xi) of the Order in so far as it relates to section 777 of the act is not applicable tothe company.

xiv. Based upon the audit procedures performed and the information and explanations given to us, theCompany has not made any preferential allotment of shares during the year under review.

Consequently, provisions of clause (xiv) of the order are not applicable.

According to the information and explanations Siven to us and based on our examination of the

records of the Company, the Company has not entered into non-cash transactions with directors

or persons connected with him. Accordingly, provisions of clause 3(xv) of the Order is not

applicable.

XV I. The Company is not required to be registered under Section 45-lA of the Reserve Bank of India Act,

1934. Accordingly, provisions of clause 3(xvi) of the Order is not a pplica ble.

For 5, S, Kothari Mehta & CompanyChartered Accountants

Firm registration Rumbfl': 022150N

Place: DelhiDate: 16-J une-2020

Harish GuptaPartner

s. s. ffofHnnt M€Hfn & comPnNY

"Annexure B" to the Independent Auditor's Report

Reoort on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the

companies Act, zo13 (,,the Act,,) as referred to in paragraph 2(f) of'Report on other Legal and

Regulatory Requirements' section

We have audited the internal financial controls with reference to financial statements of SBL SPecialty

Coatings Private limited (Formerly known as Saboo Coatings Private Limited) ("the Company") as of

March 31, 2O2O in conjunction with our audit of the financial statements of the Company for the year

e nded on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaining internal financial

controls based on the internal control with reference to financial statements criteria established by the

Company considering the essential components of internal control stated in the Guidance Note on Audit

of lnternal FinancialControts over Financial Reporting issued by the Institute of Chartered Accountants of

India (lCAl). These respo nsibilities include the design, implementation and maintenance of adequate

internal financial controls that were operating effectively for ensuring the orderly and efficient conduct

of its business, including adherence to company's policies, the safeguarding of its assets, the prevention

and detection of frauds and errors, the accuracy and completeness of the accounting records, and the

timely preparatlon of reliable financial information, as required under the Companies Act, 2013'

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls wlth reference to

the financial statements of the company based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls

Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India

and the standards on Auditing prescribed under section 143(10) of the Act, to the extent applicable to an

audit of internalfinancial controls. Those standards and the Guidance Note require that we comply with

ethical requirements and plan and perform the audit to obtain reasonable assurance about whether

adeouate internal financial controls with reference to financial statements was established and

maintained and if such controls operated effectively in all material respects'

our audit involves performing procedures to obtain audit evidence about the adequacy of the internal

financial controls system with reference to financial statements and their operating effectiveness our

audit of internal financial controls with reference to financial statements included obtaining an

understanding of internal financial controls with reference to financial statements, assessing the risk that

a material weakness exists, and testing and evaluating the design and operating effectiveness of internal

control based on the assessed risk. The procedures selected depend on the auditor's judgement, including

the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to

fra ud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion on the company's internal financial controls system with reference to financial

statements of the company.

s. s. xofHnnt MCHfn & coMPnNv

Meaning of Internal Financial Controls with reference to financial statements

A Comoanv's internal financial control with reference to financial statements is a process designed to

provide reasona ble assurance rega rd ing the reliability of financia I reporting a nd the preparation of Ind As

financial statements for external purposes in accordance with generally accepted accounting principles.

A Company's internal financial control with reference to financial statements includes those policies and

procedures that (1.) pertain to the maintenance of records that, in reasonable detail, accurately and fairly

reflect the transactions and disposltions of the assets of the Company; (2) provide reasonable assurance

that transactions are recorded as necessary to permit preparation of Ind AS financial statements in

accordance with generally accepted accounting principles, and that receipts and expenditures of the

Company are being made only in accordance with authorisations of management and dlrectors of the

Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised

acquisition, use, or disposition of the Company's assets that could have a material effect on the Ind AS

financialstatements.

lnherent Limitarions of Internal Financial Controls with reference to financial statements

Because of the inherent limitations of internal financial controls with reference to financial statements,

including the possibility of collusion or improper management override of controls, material

misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation

of the internal financial controls with reference to financial statements to future periods are subject to

the risk that the internal financial control with reference to financial statements may become inadequate

because of changes in conditions, or that the degree of compliance with the policies or procedures may

deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company

has, in all material respects, an adequate internal financial controls system with reference to financial

statements and such internal financial controls with reference to financial statements were operating

effectively as at March 37, ZO2O, based on the internal control with reference to financial statements

criteria established by the Company considering the essential components of internal control stated in

the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute

of Chartered Accountants of India.

For S. S. Kothari Mehta & Company

Place: Delhi

Date: 16-.J une-2020

Cha rtered Accounta nts

Firm registration Iumber: 022150N

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SBL SPECIALTY €OATINGS PRTVATE LIMITED(forrnclvl(r|oB-o .! S.boo Cordngr priverc Limircd)NO'TES TO FINANCIAL STAIEMENTS AS iT AND FOR THE PERIOD ENDEDIT'ARCH 3L at20

l Cotpo.etclofofitrerioo

The nemc of thc companv suods chaogeri from_..Satroo C<ntinl{s l,n|atc lrmir.rd .to ..SBt_ Sprcr:lln.Co3x,rgs P;r?rc Limircd". nrc chang. oi oam" of*".o-p"ni. il" t,".r..,,r,_r_*,.A ,r,' t'c rcgrsrrrr

;::::-.:.T.ll:.-l:ndrgarh, through rts lrtrcr darcd 06.0s.201e. .Irc ."_r;;; *",, rocorF,mrrJ r\ :,

lT:"::.,3::i :'ilTi,".&1, fi". rous,onr of rhe compenics .{cr. rei6 on ?7d, scp,c;nber. r{),).,.,n. ,.omprn! l5 cnFrg.d In rbe \t)nuf1(runo* ,,f spec|.dh c,,zrrngs. l,rcqucn rnd rhrnner. thcConrpiov's nunuf".tuEn* f.crti$ is k,c"tcd

"t O.nt "."i r,"riU. . ir-,"",q_;,;"; .ftice artdrcss .f rheconrpinr l. k*1tcd ar SCI: l2l Cabur no 5 lrirsr tl(x,r, lU.If Co,n,n..cr.i r;,_pl.* l\flrunratn_ | 6l) Ir).(-hrntlgath. fhe finencial sr.rqicnrs of thc Comp:ny for tlrc vcar .rA"J-i," .Uarch, :{,1t, rrcnrrhonzed for issuc in rccorrlancc rvirh I tesolutioo c,ithc Directors.,r tC*r ;,rnc: :O:0.

2. Basb of P.ep..rtion of6rrancial saaac|nalts

2.1. Baeis of Pr.p.tetion ..od Stareoenr ofcompliaocc

fhc irnancial ,ruremcnc of rhc Companv frrr rhc pcriul cn<lcd lIrrch 31, 1020 havc bero prcpxr(d rrrrcc.,rrl:rncc $i& acc,,unting pnrrcrplcs generd| acceprrd in India, rncludrng rLe In,.l _\S specrfie<l un.l"rscct. 'n I l1 ,,f rbc .\cr reud u',rh rhc (tompinics (Iodirn Accounting Stanaaidg nrrt.", :Ot.S, :rs amcnclcrlfronr rimc to rrme.

Thr frnrnciel st.tcmcnts havc bccn pteparcd oo a historicar cosr basis. cxccDi tirr ccnzro finaricrarsinstnrmcnts rnd defincd benc6t plens *'luch hrre bcrn m<zswcd ar fru *rlurs or amoruscd cosr ir rhecod of each rcporung pcriod (refct arcounting poLcits tcg.arding financrll uNtrunrenrs). .l.he Ind _\Slinrncid siatements arc prcscnred I. INR md all vrlucs a-tc roundtcl nr nra*st hk}s rn INR. oxcrr,r\\'hcr (,thcnr'ls€ radqrcd-

-lcc,runcing policics har.e becn consistcndr applicd cxcept *,herc a ncslv issued accounrins shnd:rrd isrnttrallr adoptcd or a rcsisioq !o an c\rsring accounting sundald requircs a change rn thr accounungpolo hitheno in usc.

2,2. Uec of Eeriorrce

Thc prcprr:tion of financul stetcmcnrs in confotmin u.irh tnd.\S rtqufes the menegemror r,r nralcjudgnrents, cstimates and assurnpuons that affcct thc rcponcd arnounrs of n:r'cnucs. erpcnscr, assrrs anrJhrlnLdcs md tic disclosue of c<nrirrgcnr lizbilitics rluhg and ar the rrul of rhc reg>rring pcnod..\l ough rhese cstirnetcs ere bascd on thc managemcnis bcst knotlcrlgc ,rf curcnr c.r.enrs xnd rctr(ns.unccneinty about thesc .ssumptions and cstirnetcs could result ro thc (,utcomcs rcqurnng a nrarcnrladlustmcnt to thc ot4.rng rmounrs ('fasscts or Labihries in future pcnods.

3. Sigaificart Accouatiog Policics for thc p..iod crdcd Ma.ch 31,2020

3.L Cuctot end Non-Currcnt classification

-\ll :ssets rnd lizliliries hrre becn classrfcd :|5 cuncnt or tton,currcnr as pcr thc Compaor.'s normrlopcrzring cvclc rod othcr cnreria sct oul in rhe Schcdulc III to t}rc Comoanrcs .\cr. 2Ot3.-\n :tsscr is rridiog ar curtcnt s.hen ir is:

or intcndcd to b€ sold or consumcd rn nonnel opcrerrng clctc

SBL SPECIALTY COATINGS PRTVATE LIMITED(Formcrly koo*o er Saboo Cn ting! privarc Lieitcd)NOTES TO FIN.ANCTAL STATEI\'ENTS AS AT AND FOR THE PERTOD ENDEDMARCH ]l. 2020

Held primanly for tle purposc of tndrng' t.lptcted ro be tcaliscd uir]ftr tu clvc rnontls efrct drc reporrrng pcnrxl rrr

Crsh or cash cqtltelcots unless rtsaicrd ftom bcmg crchanged or urcd r0 scnlc 1 lirbdrn tbr irleast t'r'rlrc months aftcr thc rrponing pcn<xi

All othcr asscts rtc clzssificrl rs non-currcnt.

.\ Lrbrhq rs currcnt l,hen:

- lt is expcctcd to bc scttlcd ia normel opcratirg cvclr- h is hcld ptinurilv for thc purposc of tnding- It is duc to bc settled m rr ithin t\r'elre monrhs aftcr thr repordng pcnrxl, rx- l'hcre is no uocondrtional righr ro dcfcr thc scnlcmcot of [abrlin for at lcrrst teclvc m()nthr aft(rthr reportmg pcriftl.

.\ll{)lhcr hrbilid$ rre classi6ed rs non-currnt-

Dcti'rt€d hr assets.nd liebilitics are classrEcd es oon-curtnr asscrs and liabtlities.

Besed on rhe nerurc of products and rhr rirru brNocn th. .cquisitioo of r:iscts for prrrcrsrng .rnd thcrrrerlisrtion in ca$h rnd c.-{h c<lurvalents, fte (}mpa.ny bas.sccmincd irs opcratrtl8 crcl( as 12 rnoorhiii)r rh( puqrlse ofcurreoG noncu!€nt cLrssificidon of.sseis.nd !abihti(r

3,2. Forcign CurrcociesItrms rncludcd m ihe financiAl st tcmcnis of thc (;omPrnt ert mc:asurcd using thc currcncl of tlrc

pnmrn cc(,nomrc cnvironment in shich thc (iompanr opcratcs (thc functional currcoc!') nrt linarcrrlsrrt(mcnts nre prcsentcd in Indren Rupcc (INR), *hicb is thc Conrpanr''s futctr{,nal md prcscni:n()n

1-ransactrons in frrregn curencrcr erc tnrtiallv .€cordcd in b1 thc Conrprn\ rl sPot rrtcs it rhc funcuonal

cu.rcnq $pot rrrc (i.€ INR) rt dlc dare thc tnnsaction 6rst qualifics fo! rcc()gnin )n. l\lonetff! atscLs rtrdliabrhucs dcnominatcd rn for.rgn cuircncre. atc tr.nshted at thc functiood currcncv sPot rates rifgichangc rr thc rrpoltrdg dztc.

lirreigtr cxchengc gains ,nd losscs tcsulting f.om the setd(mcnr of tnnsicions in foftiF'.! currcncres rntlfronr tlrc tnoslztion of moo.iri asscts rnd liebilitir:s dclominated in f(,relgn currencics it lrzr errd

cxcheoge ntes ar gcnerellv rccogniscd rn pro6r ot kxs.

Non-monctan' ircms that etc mssuaerl rn tcrtns of hrstorical cost r,r r f.re4gr currcllcl- arc lrtoshtcdusing ttrc cxcLanlp rrtcs et thc &tes of the rrritzl mnslctions. Non-moncten itcms th:l ire mc$uied at

far valuc in a forcign currencv are tmnslatcd using thc cxchenge ntcs rt thc date whcn the far value lasdctcrmrncd. Thc gril or loss tisrng on tr2oslxuon of non-monetxn itcnrs mcasurerl rt farr veluc lrtrcgred in lioe witb thc recognition of thc giin ot loss on thc changt rn far valuc <,f t}c itcm (i.t,trenslauon diffcreoces on items $hosc far rrluc gaio or l,xs is recc,g'ni.cd rn ()ther comprchenrrtcrnc('me ((X;I) or pro6t or losr are also rccogoiscd in OCI or profit or loss, rcspccr,velr).

{t-3 L

ll

SBL SPECIALTY COATINGS PRIVATE IIMTTED(Fomcrly kaof,r.r S.boo Coetings priv.r. Lidircd)NOTES TO FTNANCTAL STATEMENTS AS AT AND FOR THE PERIOD ENDEDMARCH 31. 2020

3.3. Fair Valuc Mcasurcrncrtl-ar valuc is the pric€ thet would bc rcceived to scl a!.sret or pdd to eaosfet a liebilio io ao ordcrr'transecdon bctwccn nrz*et pa.icipe[c zr rhc tac2sulcmcnr dltc. the fzir lzruc meeswemenr is bascdon thc prcsurnption thet thc crnsaction to sell thc rssct or tansfcr the liabilitv takes place either:a) Io thc poncipal mtker for the rssct or liebility, orb) ln thc :bsence of e principd market, io the most advantegcous markct for the asscr or liabilin,

Thc principrl or the most advantageous marker must ba acccssiblc by the Company.

'lhe fair value .fao assct or a liabiriq G mcrsurcd usrng thc rswnpuons thar market participmts woulduse $'hen pricmg rhc assct o! tiebilin, assuming th.t ,nerkct participants act in tbeir bcst ..onomr.mrcrest.

-1 feir raluc mcasuremcnr of a non-Enrnciar essct trkcs into account a marret panicipanfs abilin tcrgenetete ecooomic

.trcncEts bl usiag thc rssct ia its highcat and bcst usc or bi seriag rt to rnothcrmarter patticipznt that would usc tbc alset in irs highcst.nd besr use.

Th-c Conrprny uscs valuetioo rccboiqucs rhzr ete applopriatc in thc cfucumslanccs and for rvhich\ulhcrent da.. rre rveileble to mezsurc {air vdue, merirnising thc usc of rcre*ant obscr'eble iopurs andninlnisrng thc usc of uoobscrr-able inputs.

r\ll assets and liabilities for *hich fair valuc ic dreasulcd or disclosed in the bnancial statcmcnts rrccategorised withio the fair vdue hieu.tchy, dcsctibcd as follows, bascd on the lowest level inout that issigniEcent to t[e fai valuc mcasurement as r wholc:

a) Level I - Quotcl (unedjusted) ma*ct prices h zctive matkets for identical esscts or liabilitiesb). l-cvel 2 - Vdu.tion techruqucs for u,hich thc lo\rcst lcvcl inpur $at is signifceot to the feir

value mcasurcocot is ditccdy or indirccdy obscn eblcd. bvcl 3 - Vrlurtioa tccLniques for q.hicb thc lowcst lcvcl inpur tlut is signiEcant to thc fzirselue oeasucoeot is uaobsen able

l'or asqets eod li.bfitics thlt l-te rccognis€d in thc fioancid sr.tcmeots on a recurring besis, thc Companydetcrmin.s vhcthcl trrnsfers havc occurred betwcco ler.els io the hicrarchv by re_zsiesstog ca,.gu.rooon(based oo the lowcstler'el input that is signiEcenr to thc fair vrlur mqs,rcmcot es a whore) er the eod ofeacn lqtortrog pelrod.

For the purpos€ of frir valuc disclosu.cs, the compmr hes detcrmincd crass., of dsets aqd tatlirrtics oorhc basis of rh. nan'c, cberectcristics and risks of trrc asset or ri.birity and the levcl of thc fair varuehrenrchy rs cxplaincd abovc.

3.4 Cerb rod Cetb Equivdents

Cash and cash cquiralcnt h thc t|almce sheet comprisc cash at ban*s asd on hend and shon_termdeposits with. an origind meturity of three mooths oi lcsq shicb arc subjcct ro 2n iosigoficant risk c,fchaoqcs m value.

ItJ.5

\-,,-

.!d e*7" I

yo'dl

SBL SPECIALTY COATINGS PRTVATE IJMITED(Formerly Lnown rr Seboo Coetingr priverc Limited)NOTES TO FINANCIAL STAiEMENTS AS iT AND FOR THE PERIOD ENDEDMARCH 3t 20m

Pr,,Jxrt1, phnt and cquipment anrl caprtal worl in pnrgrrss arc camed ar cost of:cqusrrron. on cuffcnrcosr Dists tcss rccumutarrrl deprccrauon .nd accunrulat!.d impairmcnt, ii anr. (ixt compnscs puchascpncc rnd d'ecth ettribuablc cosr of bringing thc

""".r r. ,r, , .,,rL,ng .on,lr.i,n f,,, thc rntcnded usc..\nl tr.rdc drscounts .nd rcbrtes *r" d.arit.J ra ern\rng rr r-he p*.fl.. p"... S""f, cost rncludes rhe..'s of rcphcing p"'t of rhc phnr and cquiprnenr "nj b,rr-,i.ing .o.,J i,,. t,u.,g,,..rn constnrcuon

prr4ccrs if the tecognitioq cfltcr' arc rnct. triachrnco spar"s o,hrch .ao bc uscd .rntr rn corrncction *.uhrn ttcm of frtcd asset and $hore u* is cxlccre,t r" Lc L..grrtr, .t. capiuhscrl eod dcprccrarcd orcr rhcuscful lifc of the ptincrpel itcm ofrhc rclc'anr asser". \\.trcn srgruficanJpans offhnr and cquipment arcrc<Irircd t. be replaced rr inrcn s. thc Compenr' ,rcprcc,tcs- thcm sryaratcrv'bnca on thc* spcci'cusr:frrl livc,s..likewisc, whcn a miior inspccti<rn rs perfurmcrl, irs cosi i" r..r,gns.,f trl rhe caln,ingamounr of the plaot end crlurpmcnt as r icplec.mcni if thc rccogrurion cflreria .rc srnsficd. _{ll orhcrrepr'' .no nrlatc.r.rcc cosrs aro rccogn'.d in pm6t oi kxs rs incurrcd. .Itc

pres€nr |aluc of rIe:y..t.:3::1"j,9" dccommsu,rnrng of en assei rfter its usc s included ur rhc iosr of rhc respccnvcrL\ct lt th6 recogruoon corcril for r prorsron are mcr.

,)j.:..1::llt,il.ilfhnr.ald <lurpmmr end rnr significenr parr uritialtt rccoxn,ir.il N ticrecogruscrJrrPi,n drrfxrsrt or trhcn no furure c-conomrc

.trcnefir re cxpc.ctcd ftom rts usc or drsp{rsd. ,{oI gaul (,rl<';ss arisi'g on demcogaidon ofthc assci (calcuratcrr n rhc differcncc trctwec'n rhe neidisposet priccedsr*l the cetrying amo,nt ofrhe ass*) is included in thc hcomt statem.ntu'hcn rhr {sr* rs derecogniscd.I)eprccratroo is prorrdcd on Stnight lnc mcrhod orrr rhc useful lics of propem, plant aod equrlmcnras cstrMtcd br managrmcnr. purtu.rnr ro Nori6crti'n of Schcdulc It'ofitc <;irmpanlcs ,,icr, :ittfdePrccudnn rr-Floqd€d prorrre barrs on srnrghr lnc mdhod .r rhc riics d€r€rminrd brscd.n rstimateclu\crur urr) :l p-l]ryq\.._ pl2nr rnd cquipmenr rrhcrc epplieblc, prescribcd under Schcdule ll to dre( omp2rucs rcr zu-r J rr1dr rhc cxccpnon of thc foloriog itcm for *luch uscfur rircs ar csnmeted br themrnalErment b:o'cd oo technicel eraluedon arc diffctcnt from thosc spccificd ,'r efo.c"d schc.t,rle ii.. Phnr 2nd nuchinca: 15 r.cats to !10 rcarsr- lrarchold Buildhg is emortizcd on a streighr linc ovcr rhe tcnr:rc of rcsDcctive leases.lht reridual vducs. useful lir.es end mcthrxls of d.preci"uon of prop€rn, pLnr rnd c.1urp^cot

"."rc.rcucd ar cach 6nancrd ycer rnrl anrl adlusrcd prosp.circtv, ifapprupriar..

3,6 Inutrgiblc Arsc6

lntrngrblc -\sscts rrc rccogoizcd onh uhcn 6rnte c<onooc bcncErs arising (,ut of thc escrs flou' io rh(.cnrcrpnsc.nd r.:unornsed (,!c. rhcir'scful Lfc rengrng from J ro 6 rean. In'.ngrhtc ar:cts rcqurrcJ

::lj*j"ll "* T-rrd on rniriai rcc,rynition at cost. l.olowing rnitial ,.""grr""", urr.nt4rblc rrs€rs artcar.,cd rr co6t ress .ccu'ulzr(d zmortization

.aod erc,'m.bt€d irnpairmcor rossrs, if enr. lntemalrr.

gcnctrlcd 'teogibk-""scts,

.xcluding capitalizcd dcvclopment costs, are nor capitdircd tnd ,r. .frrg;ito S.arcr$cnr ofPro6t .nd Loss for rhe rcat dudng vhicl such cxptnrlirue is iniurrc,r.

3.? lnrpeiorcar of non-Iinencill zlscrs

l}r( (l,rnp2nr ,6srsscs _.r ezch ftporung dlc whcrhcr tietc b an irdic.oon rhlr rn esser nrzr beurnrrco. |l an' Edrcaoon cr8ts. thc Compan).cst'n 1c" thc assct.s rccovcraLrle 2mount, .\n a;scr\rccorr:rable amr:unr is rhe hrghct of an es*t1 or crsh-gcaenting uni/s (CGU) n< srltrng pncc and i$

'ahrc r' usc' 'lle rccorerabrc rmount is dercrmined rJr - inaiuiauot

":".,, ;,J;" rhc asscr docs not

I:_::.ij.:T!_-fl:T Pr rrc tz*1f_ i:dceeodeot of thosc ftom orhcr assets or groups of rsscts. \lteredr( crrn n{i rilct o. (l(;t'€xcccds its rccovenble emount, the assct is considcrcd unpeircrJ

and rs u'rincn rmouot,

lvi.'llt1

SBL SPECIALTY COATINGS PRIVATE I.IMTTED(Form..tt k or.tr .3 S.b@ Coatings privarc Limircd)NOTES TO FINANCIAL STAiEMENTS AS iT AND FOR THE PERIOD ENDEDMARCH 3L ay20

In asscssing vdue m use' *re cstimzted fururc czsh tlo*'s arc di:cr:untcd r'rheir prcscnr !!,u€ usrng apre_tex discount ratc rhet rcllccrs curcnt merlct asscssocnts of ahc timc valuc olnronct and thc nsksspecific to rhc .ssct. In dctetmining nct selling plicq reclot markct transactions ete rakcn rnr,, rccounr, rf,r-dable. lf no such rrinsacmrns crn be idcnufied, en zpprcpriarc valuatron mrxlel rs usrtl_

3.t Iavcatoricr

Finishcd g<xxls md worl-in-proccss ale statcd rt the lower nf cost and cstimarci nci rerlisable valuc.Cost of ia'cnr<rtics constitutcs dirco mltcflals rod lebour and a proJxrtion .f manrrfactun'g o'erhurlsbascd on notmel openrirg ceprcin.

Raw matcrrals, compoocnh, srotes and sparcs erc rrluci ar los'er o{ cost and estimated ncr reabsable\'.luc. Cost is dctcrmi[€d on wcrghtrd arcngc besis. tlowcr.er, m:tcnals and othcr lcms heltl for u,rt rnthe ptoducuon of urvcorolics atc n('i $'nnen rbwn bclo*. cost if thc finished producrs in \thich tho wrllbe rncorporrtcd erc expcctcd ro be s, rll are rr or ebovc cosr.

Prolisroa is recogniscd fot &meged, defectilc or obsolcte stocks whcre necr:ssan'. Cost of allinrentones i:r dctcrmrncd using wcrghtcd ercrege mcthod of taluation.

\et rc.alizzblc lduc is the esurnattd srlling pnce in rhc ordinen' cousc of buiincsr. l.ss csumltcd c1r:rsof completion end cstimetcd costs n€cessan to rn:le th€ sde.

3.9 Rcvcauc eod Orher Inconrc

Restrrue from contricts \!'irh cuitomcts is recognizcd when c(tnirol of lhc go<xls or scnrccs atc

transfcrrcd to the custom.r lt r.o rmount thet te0ects the considcmuon to $hch ihc ComPrnI c)iPcc!\

to bc rnudrd in cxchdga for thosc gorxls ot scrviccs Palments from c$tohers f()r lhe 8(x s

naosfrncd lrc doitnallr rccciled rithio 30-60 dl\'s.

Thc (iompanl cetn-s revmuc from lhc coDtmct with cu5bnrcrs in ihc followinli cltcpt'dcr:

Srlc of goodtRe'cn'Jfrom thc selc of goods is rccognizcd, when all thc srgoificant risks and rcwrrds ofrwnership ofthc grxrds havc passcd to thc bul'tt, the ComParrl-o€' longcr has cftcctivc c'ntrol over thc goodr s.'ld.

thc :rnrount of ielcnrr end cost! .sso.ialcd *itlr fic trroszcrion can bc measured rclub\' and no

slpificaor unccneinry exisa regeding the rmount ofcoosjdctarion thet v{l l)c dcrir.r.d frorn th€ sal(s ofi xxls. Rcr.cnue from thc selc of gxxts is mcasucd :t th feu vehre of r6e conrirlcnnon recctt cd t,r

receivable, ncl of Etums lnd dlowrnccs, tradc discouots .nd volume rebrtc:' Thc sdes crcludc'd the

grxrds end scn'iccs rex.

lntcacet iaconclntcrtst incomc is recognizcd on tirnc Profl ioo bests tzking ioto ac'ounl thc amount oulrlandinS and

rhc rpptrcable intcrcrt retc lntcrcst rncotne r.\ rncludcd wtder thc he'd 'Oihct Incom(' rn thc Strtcm€tlt

of I'rofit and bss.

Dividead IocotocDrt cnd ncome is wheo thc nght to t!'ceivc Prtmcn. is cstlblishcd. r'hich is gcncrrllt' *hen

shrtcholdcrs

U^r-it,iil,lw4L' I

sBL SpECrAtTy coaTtNcs pRtvATE LJMTTED(Formcf koo*'a || Scboo Cor.irgs privatc LiDircd)NOTES TO FTNANCTAL STAiEMENTS AS iT AND FOR THE PERIOD ENDEDIUARCH 3t,2(n0

Expo.t loc.ativcsRer uruc accruing oo rixpon urccnovc

' rhc form of t)uo l)ra*.brck 2nd :or- (,rns ..hemc r!rec<4ruzcrl in t}te stercnrenr ofprofit and loss on rcccipr basrs.

Insuteocc & othcr Clzims'l1rc rc'rnuc m rcspcct ,f cl-rins is rec.gnizcrr when no signifcrnr unccrtrilw exrsb $.*h rrgrrd ..) rh(amount to bc realizccl / ecovcrcd aml rhe ultr.rrutc rr..liad.n rhatu.,f

3.10 Govc.oh.ot G.'rntr aod Subeidics

(iovcrnmcnt grents end subsirlit's art recogmined whcn thcrc is ttasoneble assurrnce rhir rhc (j.)mrrxnr

'r'ilJ complr nith rhc com.litions rrtachcd to thcm rnd rhe grents/subsidr u.rll be rtccircrl.

\\'h(n Ih( grant or subsrdr firrn tie (;ovcmmcor rclarcs ro ter.cnue, rt rs dcducted iiom rlre relarcrlexpetrse ofl a ststcrn2ic basis m the Snemcnt of Irro6r rnd Inss over rhe pcriod neccssa4. t, marchthcm 'niih ihc rchtcd costs, wtuch tiriv lre irrcn&d ro compenserc. \ttrcn the grena rcurcs ro rn as\1,rr rs rccognrscd as urcomr rn ctlual amounts or:cr dre cxpcctcd uscful life of the rclatcd rssct.

\\'h.n th{ (lompaor rrcci.cs grants rf non,monctan rsscrs, t}rc assg xnd lhc Rrrnr arc rcco.lerl at farr{alur amorrnts and rclcescd to pro6t or loss or.cr thc expcctcd uscful Lfc rn z pancrn ofconsurnpoon oftic bcncfit of thc un&rlring rssct, ic. bv c<1ul annuel insrelrneors. \Vhcn lcnns or simihr assisrrnce arcprosided br govcduncnts or rclercd insritutioos, nirh 2n intercrt rrtc belos' the currenr .ppLcablcnr:rrkct mtc, the cffcct of this fevounble inrerest is tqqenlcd .s a l4or.cmmcni gtanr. 'l]le loao orasststancc ls iaiuall! rccogniscd end measurcd 2r flir rduc of thc pr()cecds received, llrc loan is

subscr.lucntlv mcesued es per thc accoun.ing polic1 applicrblc to inancnl lrab rrres.

3.11 Eoployce Bcn.6ts

I. Dcined Cooribution Phn

e. Provid€nt Fund(i)ntnbuiions in rcspcct of !.mplolccs ere m.d€ to thc l;und edminisrcrcd bl thc Rcaiooal I'rorirlcntFund Commrssiond .s pcr the prcv:-rtons of tinplofcs' I'mlidcnt Fund and \tiscellaneous I'rogisiorts:\ct, 1953 aod :rt chergcd to Stricmcot of Profu rnd lass as end \r'hen n'trices are tcndcrcd br

emplovees. Tbc Corrlpanr has no obli$uon othcl thrn thc contribuuofl pal eble to rhc Regronall)rovidcnt fund.

ll. Dc6ocd Bcncfir Plln

Gr.tuityIilen cmplorec who hes complercd 6re reets or morc of scnicc is cntided ro (ireruin as pcr rheprovisions of Thc Pevmcot of (ireturn -\ct, 1972. Rctircmcnr cnlurn for empkryers, is funrlcd rhrcughr schcmc of Lifc Insucroce CorJrorrrion of lndi:. 'Ilre costs of providing bc|cfits under rhis phn rrcdcterminrd on thc besrs of ectuariai valuation ushg rhe p.ojected urut credii mrihod 3t erch tcar-cod..\cruerial gains/locscs air irntnedirtcll rccognised in rct.incd eemings through Othcr ComprcbcnrivcIncomc m the prnod in wtuch thcr rrccur. Rc-mr:surcmetrts .!c nor rc-classrticd ro plotir or ldss !nsubrcqucnt pcriods. -ltc cxccss / shonfdl in thc fdr uluc of thc plan ass€G over tic plcscot valuc ofthc obliSruon .ctu.ti.l mclhod$ ar et belence shcct datcs is nc<gnrscd as r gain / losr

I!

SBL SPECI.ALTY COATTNCS PRIVATE IJMITED{f:T:9_91- S"boo Corria5 priv.rc Lisircd)NOTES TO FINANCIAI. STAiEMENTS AS iT AND FOR THT, PERIOD ENDEDIt{ARCt{ JL 2020

m rhc Statcmcnt of Pmft rnd Lxs_ .\ nr rsscr ensing out of thrs calculrtrorr r.s irruted to rhe prst scn_iccc.sr pl's rhe prescnt vdr,rc of avarlablc rctunds and J<tucrion in futu.., ;r;;r;,,"".b. Providcar Furd(lortributroos to I'rorident end liernitr

'ension l.'und is nud€ m acc{,rdancc ,n-rh rh€ pr.risr.rrs.f rheI'r(r'idcnt l.'und _\cr. 1952 anJ is rc.t.d:s rrr.enuc cr;ro<liture.

lII. Loog Tcrm Compcn arcd Absenccg

'lhc Conrpanr.rtzts rccurnulatcrl ,cavc ro thc cxtcnt such lcave arc camcrl fors,rnl as krng,rcmremptor.tt beoc6t f<'mcesurcment purgxcs. Such krng_t ._ .r,rnperr."r.J-;;""".r.", ,.. pn,vidcd forbascd on thc actuzrid laluation using thc projecrcd unit crcdrt mcth,rl ar thc yclr cnd_ ,\crurnalgrnrs/losscs arc imrncr'tiaerv akcn r,, rrrc rt2rcment of pr"fr, ;"; l;:.-";; arc not tiefcrrcd. r.hc(.ompanl prcscnN thc lcavc as I curtcnt liabiln tn lhc balancc shect, ,o,t...*,.n, |r docs n()t hzr. anuocr)ndrnonel nghr ro dcfer rrs s(rrlenrorr,fi,. |] monr]rs efrcr r]re ^.p""r;;,.. \\,hcrc Companr hasthe u'crndioonal lcgal and cooftr*ual nghr ro rlcfer rhe scnlern*, f.lr . p.li *f **md tt m(,nrh\. rhcsanrr is prcscntcd es non-currcnt [ablhn..

3.12 Taxcs on Incooc

Tar cxpcnsc compriscs currcnr.nd de{crr€d t x.

Cura€ot Incomc Tex(lurrfnr Income-t:x rs nrezsurcd ar tbe arnount crpccrcd r(, bc prid 1,, rhc t2-\ rurh(,nti.s jn aecorrlanct*ith the lncome-rax:\cr, lg6l cmcicd in Intlie anrlrex lzws prJr."rfr,rg _,frl."g*,"= rex iunsdicrr,rrrss'hcrc thc Cornpaoy ofrcrates. lhc tax rarcs and tex ir,*." .,*"j to .o-irurs rhc amouni arc rhosr rhii rrccnrctcd ot substearirely cnaocd, at the reponiag rlete.

rhnagcnrcor periodiellv cvaruetes rhc posrtrons ."kcn u, rhc ."x rclums \r'rrh rcspe. ro rh€ srnrat )rN nwhich rppliceblc rax rcguhtions rrr sublcct to intcrprctruon and .sobliihes ptovisions shrrcrPProPtrzte.

Deferrcd Tex

3:*j I : p',,*:d..::rg tlT lirb,tifv nrethod, on rcmporarr drffercnccs ansrng bct*.eerr thc rax

'escs ot rsscts end liebilities enrl their carrving .hounts io the Ind ,,\S fin:rn.,xl srlrcmenrs 1r rhcreg'ning detc Dcfcrrcd income tax is not accouotcd for ifrt anscs fr.m nrtrai rccogn'ron or in as,.r orliib ia in q trrosect'oo othcr t'a,' a busincss comblnltion thrr

", ,t

" i" ,i *" rransacuon alt.-r..incuhcr eccounting pro6t nor uxablc pro6t (rex loss).

l)efcned incomc ux $ dctcrmincd usint t2-\ riles aod h*: thar havc bceo cnactcd or substanrrallttn:rctcd Lrr t'c.cnd of rhc rc.porung ptriJ rnrl erc expccnrt to a.pf,:*i., J" ,"f.,"a a.rcrrcct nc,,rnciax rsset $ re.lised or thc defrned incorne tat Labilin, ir setrlcd.

for all deducrible rcmpoots differcnces anrl unuscd tax losscs onlr. ifam<uts grll bc rvedrblc to uuL.c th,rc rcmponry clffrnnrcs.inrJ

rflll \N.t A"P

SBL SPECIALTY COATINGS PRIVATE LIMITED(Forocrly loowl er Saboo Coetiogr ptivnc Lioircd)NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE PERIOD ENDEDMARCH 3r" 202()

Thc carrying emouot of dcfcrrcd tax asscts ts rcviewed et cach rcpornng date aod reduced to the cxtcntthat it is ro longcr p:obeblc thet sufficient ra.lable p!o[t will bc evailablc ro allow .ll or par of thedcferred tex asset to be utilised. Unrccogruscd dcfcrcd tax asscrs arc rc-ussessed at each rcporting drtcaad ue tecogoiscd to the cxtent that it h.s becomc probable thst turulc tzxable pro6ts .r.ill allou, thedefetred tzx rsset to be recovered.

Defencd tzx :od lirbilitics erc measured et the ux retcs th.et are cxpcctcd ro apply in the rezr *,hsn asscts rcraliscd ot drc habilitr is sctdcd, brscd on t2x rlrtes and tax l.\r's rhat have beeo eoacred orsubstzntivelv cnacred et tlre leporting &tc.

Defertcd tax assets aad liebilitics alc offsct *,hco drcrc is r lcgdly coforceablc light to offsct cu!rcnr ta_xrsscts orl liabilities aod whcn the deferrcd tar baldccs rehte to lhc samc texation euiboriry. Cu$eor raxasscts and tex lbbilities are offsct wbere the entity has a legallv cnforccable ighr to offset and inrcndseithcr to settlc on 4 nct basis, or to rcalisc the assct end sctdc thc liabilin simultancously.

Currcnt end dcferred tax is rccogoiscd rn profit or lcss, except to the extent thrt it relet€s ro iremsrecogruscd rn othcr coopr€hcnsn. mcorre or dir€cdy in €qutty. In ths case, thc tr-.. is also recognis€d rnorhcr comprchcnsivc income or direcdy in equiw, respectivcly.

Dcferrcd incomc taxes ref,ect the impact of timing differeoces betwecn taxable income and eccountingmcome origrneting dutiog thc cuccnt ycar and rcversal of ri-i.g diffcrcoccs for tle earlier tcars.f)cfercd tex is measured using the tex lares erld thc Er hws cnactcd or substandreh cnectcd rr rhcreportrng detc.

Minitnum Afteautt Tax

lrlinrmum Altcmate Tex credit is rcc nized, as an esset only whco end to the cxtcot therc is convincingevidencc that thc group will pav oormrl ncome rex dudng the specificd pcriod. In rhc rcar in which thcN{A'f crcdit bccomcs cligiblc ao bc r€cognicd as .n zssct in accordancc wirh thc rccommcndrtionscontzrned rn guidrnce nore issued by rhc Institurc of Cturtscd .Accountaar of Indie, thc said assct iscteeted by uzy of a ctedit to thc Starement of Pto6t :od Loss aod shown as lt_{'l' Credir Entitlcmeotundcr l,oans & Advances, Thc group rcvicws thc szmc at cach brbncc shcct datc rnd *:ritcs dorvo thccar4'rng rmount of IIAT Crcdit Entidement to thc eniear thele is no longcr coor-incine etidcnce to rheeffccr rhrt group will pav oonnel Income Tax during thc specr6ed pcriod.

3.u Proviriiooa aod Cootingcncics

i ptorision is rcognized vhco an coterprisc has a preseot obligarion (egal or consftucti,r.e) es r result ofpast ctcnt; it is protreble dret en outllow of rcsoutccs cmbodyiog cconomic bcncGts wilt be requiretJ tosctdc thc obligetioo tnd I rcliable estimatc cen bc mede of thc emounr of thc obligeoon_ Th. .xpcns"relaung to e provirioo is plescrrcd in rhc steremcft ofproir and loss.

If thc cffcct of th. timc velue of mon. is materizl provisioos are discounted using r currcnr ptc-rr-r rarerhrr tcflccts, whco appropdate, thc risks spccifc to the liebility. Vhen discounting is used, thc incro". inthe provision du€ to the prssege of tirnc is rcogaised es a iaance cost.

SBL SPECIALTY COATINGS PRJVATE LIMTTED(Formedy loown ee Seloo Co.rings priv.rc Linitcd)NOTES TO FINANCIAL STATEMENTS AS AT AND FOR TItE PERIOD ENDEDr#RcH 31, 2(n0

estirnetcd cash flovs and arc tecogniscd as pen of the cost of the panicuhr assct. Thc cash flows arediscounted rt e curreot pre-t r .^tc thar reflecrc thc risks specific to rhe dccornmissiooiog li2bilitv. rhctunn'inding of rhc discouot is cxpqrscd a3 incured end rccogaiscd in thc statcmcot ofpro6-t and loss as rhnance cost fie esti'eted tu.'ft .osts of decommiseioniag arc rcviocd ennu.[t ard rdjustc<r asappropriatc. Chznges ur the estimatcd furure cosrs or in drc discount rare .pplied arc adrlcd ro ordeducred from thc cost ofthc rsscr.

A contingcnt liebilitv is a possiblc obligation rhat rdscs ftom pzsr er.enrs uhosc cxistence *ill becon6nned by the occurencc or non-occualcnc! of onc or morc unccttarn 6,rture cr'cnts bc'oad thecontol ofdrc compeov or i present obli$tion thet is not recognizcd becaure it rs not prouuL ttrrr

"noutflow of. rcsolrces will bc rcquired to scttlc thc obligation. 1tc Company rro€s nor recog z€ acontrngeot ll2bility bur discloscs its cxistence in thc 6n nci2l st temcnts.

3.14 Boaowing Coste

Ro*owing costs iodude intctcst, irDortisrtion of:ncilhq. costs incurcd and cxchange differcnccsansmg from fo.cigo currency borrouiogs ro rhc exreat thcy rre tegardcd as en adjuitrnent to thcborrowing costs. Discouor oo Cornmercial pepos is mottiscd o.,c. thc teno. ol the undcrlyrngmstrumeot. Borrowing Costs, dloc2ted to and utiliscd for quali$,ing esscts, peneining to rhe pcriod ftoricotnncncchcnt of.ctivities rel^tirg to coostruction / dwclopmcnt of the qurlifiing zsset up to the datethe asset is ready for is inteodcd use is addcd to thc cost of thc asscts. capitalisatiori of Bonowing costsis suspcnded md chargcd to thc Strtcmcnt of pro6r rnd l-oss duting extcn&d pedods whci actilederelopmcnt aciivily oD ihe qudiftirrg $scts B intlrrupted. All other lorrorvmg cosrs are expensed rnthe period they occur.

3.15 Erroi|rg8 pe. She.c

Basic Ezmings pcr sh.rc is calorletcd by dividing thc rct pro6t or loss for the pcdod attibual.:lc rocquio sbrchold.i.-s bv lhc wcrghtcd avcegc nurnber of eguity shetcs outstanding juring thc pciod. Ibrthc purpose of cdc'letiog diluted eamiogs per shre, rhc oct pro6t o! loss for the peri.d znritrutable to.'qurn sha_rcholdcrc znd thc wcighred ercngc nurnbcr ofshrrcs ousanding during rhe pctiod s adjustcdfor the effects ofdl dilutive poteotial equin shates.

1he wcightcd -everage,

numbcr of cquiw shres outsranding duriog the period aad for alt pcriodspresenEd rs edjusted fot cvcnts, such as bonus shatcs, orhcr rh.o rhc conscrsion of porenouf egurtt.shercs that hrva changcd thc oumbcr of cquirF shrcs outstrnding, without a coresponding change i.

3.16 Fio.nci.lllst.umcars

A.6n.ncid instr,,'rcnt is eny contrrct thet givcs risc ro . 6n2ociir ass..r of onc cntiry and a finenciarLabihn or cquin iostruDcnt of eaothcr cntin..

.qq Fin ncial.rsctsi. Initid rccogaitioa od ocagurcmcnt

SBL SPECIALTY COATINGS PRTVATE LIMITED(Fornrcrly loo*n er $too CoatinA, priwrtc LiDited)NOTES TO FINANCIAL STAfEMENTS AS iT AND FOR THE PERIOD ENDEDNTARCHl|,2@

ii. Subscqucol tDcrrruremcstl'r purp- <rscs o f subscqueot mcesutcmcnt, financier essets arc crassified rrr rwtl carcgones:a. l)cbt instnrmcnts at amonrscd cosrb. l.:quity rtsuumcnts meesuted et feit teluc rluough othc, comprchcrrsive rncomc Fl-l.OCl

Debt ioslrumcnts at allortiscd cosl .1h.a lhan dcrivetiw cootracrs.1 d(br inshrnent'is ineasured ar thr amorrisrd cost if both tfrc folo$ rng condroons arc mct:r 'Ihc rsscr is bcrd x'ithrn z busincss modcr r'hosc obiccorc i. t,, h('rd asscrs for c,,llcctrngconractu:l cash flou.s, and. Contractull telrls of the esso grr.c nsc on specificd drtcs ro cash flows r}|t rrc solcl! pavmcnrsof pnncipal and intcrest (Sppl) on rhc pnncipd emo'rnt orrcstending.

-\fttr initld rnezsurerneor, sucb fnancial rs.ers erc subscqucatlv mcasurcrl {:rftoiDscd cosr usrng rhceffccuve intctcst tete (EIR) rrcthod. ;\nromscd cost i: cdcllal€d bI rrldng rnro accounr anv dlrcounr .rfr.mrum on rcquGitioo aod fecs or costs thar ere an iotcgrrl p"n.rf rl"illi. .l}e EIR amonisauon srncludcd in finance rncome in the profir ot Io"". ffr. b..csirisiirg fr,,tn rnrp"Ju.n,

"r" ,..ognr."a ,n ,h"prolu (). k)ss. I his c.tcgon gencallr. appbcs to tra& and other rtcitabl..l

i ii. De-rccogairion\ f'rar.al asser

,(ot' whcre appricabrc' e pert of r

'neocizr asset ot prn .f a Companr of simirar rrnrncralssus1 rs pnmarilr dcrccogniscd s.hcn:

o 1}re nghrs ro reccive cash fl<rws ftom the 2sset haie cxDired. ot. rhc Comprny hes Eeosfettcrl subcrrnnrlJy aU thc ddc rnd tewerrts ofrht asrcr

iv. ftlrpairElart offila[cial asscbIn accordaocc wirh lad-is 109, thc (.orrDrnrmcasurtmcnt rnd rccogaiuon uf wrpeurnenr'loss

. I.in.ncial a$s€G that rre drbr rnstnrrncnts, 1nd rc mcesuerl at anrr,nisrd cost e.g., Iorns, dcbr\(cund6, dcposits, tlrdc rcccirzbles aotl blnt batancc

Thc Comprnv follors 'simph6cd rpproech' for rccognitioo of irnpaumcnt loss alloryancc on .I_radercccn ebls.

,11: ^t't']-t." of sirnplified rpproach rlocs rrot_tcquire thc Company rrr track chenges in cedit risk.Karhcr. 't

rccogoilc3 rmpeirmcnt luss 1ll(a,..c. based on lifcdmJ I<:t^. "i.o.i r.pomng a",., ;gtr,tKrrII tls rudal rccoenidotr.

l;1.:.ji]:*-t:*tcd^cterlrr.rrxss-rcsutting &om :ll possiblc rJcfautr crcnts oycr the cxp(rcdItfc of r finencrel insmrmcnt. ECL rs rhc differcn." b.*..n .,'"on,rr.J'.*i n"*" ,fr.,.* a* . ,lr.Conrpanv in rccotdencc uith rl.rc conrreo and ell thc cesh florvs thlt ,h" "r,,io

.*p".,. ,., ,"..n.",<it-scounrcd ar rhe otiginel Ell- Wheo csnmating the cash 0ows, rn enitr i. .".1r;.J .., .,rn.ru"r,

.ppltcs €+ccrcd crcdit krss (ECL) modct n,roo thc folloning financial assers and credrt nsk

,1ll coot rcnul terms of rhc financizl itnsrumeat (including prcpalmcn! extension, cell and...,*: :ti"") over the expc*cd life of rhc 6nenc'l -,L"'.",-r,'.*'..;., ;;:;l;;::i,T::::,l,tj""jrkgTalinsrrumrnr cronot bc csrimatcd rcliably, tr,"n tr,"

"nrn t, ,.qui."a

thc term of rhe financral insrumcnt

, lt ;.,ri'l r

SBL SPECIAITY COATINGS PRTVATE UMITED(Forg|crly loora 8 Scbo Coeringi privarc LiEircd)NOTES TO PINANCIAL STATEMENTS TS AT AND FOR T}IE PERIOD ENDEDl\tARcH 3t, 2020

. Cesh flows from thc sah of collrrc.al hcld ot otlrct crcdl cnhanccmenrs thet :re inteqr.rl to thtconrracnr:l tcrms

-\s e pcrcocd expcdicot, thc Companr uscs a pronsion mltrix to derclm$c rmplimror l()ss allo*:rncr,rn portfolio of its tradc tccciyablcs. llc provitron mtnir is bzscd on ta:i hisrolcell\' obscn'crl dcfaultrrlc\ ovet Ihe cxpectcd life of the i,"rdr rcccilrbles and is adlustcd for foru.rrdJooking cstrmatc.. ,\rLrr(- rcpoftrag drtc, thc hisrodcal obscn cd &fiult mtcs atc updeted end changcs in thc fo$'ardJookingcslnratcs arc enrlvscd.

Ii(ll. lmp2irmeot loss zllovenct (or r€r'crsrl) &\cogruz.d durilg rhc pcnod t. ftcog[itrd as mcomcl€xpcnsc ltr lbc strlem.nt of pro6t end loss @&L). Thts 2mount $ rcflcctcd uodcr tbc hrtd l)dr(rr\pcoscs'ur rhe P&L lhc belancc sheet Piescntltiod for veri rus finenci:l instnlnents ts dcscnbtd

. lirnAnclel .sscg mcaru.cd rt amort -\cd cosc F-Cl, is Prcscnt.d ns ^n

alk'*':rnce. Le'. es an mte8t:

DirI of thc rnclsurcmcnt of those essers in the balance sbect. 'llte allo$ ance reduccs tht net carn m8

:,m,,unr Lntil lh€ rssct mccls rxrirc off cntctie, thc compaoy drrcs not rcduce unPrirmcoi rllowen(c

frorn thc gross carn ing amount.

[r,r asscssing mcrcrsc tn crcdrt risk and imPaitnrent loss. thc ComPant combinci 6n'ncid insGumcnts

o lbe brsi; of shetert crcrlit nsk chlr:crcrisric, *,nh thc obicctir.t of fzciruting 2': rn.llsll rhar rs

dcsrgncd to cnablc signilicant incteases in credil nsk to bc idcntificd ()n x ilmch basis'

B. Filancialliebilticri. Initial rccognitroa end mcesurcmcnt,\ll inrncial libiliuis dc ftcogniscd uriiidll at fdr uluc and' in rhc ca$c of lorns rnd bonot'tngs anrJ

pivabl(s, invcsimcnt rt sub.idnrie* antl iourt rcnturcs' nct of diJecdY 'ttnbutlltlc

tnnsacuon cosls'

'ltc (:otnp.nY's furancul liabihocs includc mdc rod othcr prvables' loans and borror{ings including

lrenk r'"erinfts, financnl guN!.nree contncts end dcriretire fineociel instrulncnts

ii. Subsequcoamcalunatllctlt" 1rl. -.".L_l"i "r

finaaciel lgbrluc. rtcp.nds on thcir ctessificetioo, rs describtd lxloq:

Fitr ocirl lirbilitics .l f.i! v.lua rhrough proft oa bsg

Iinalciel liabilitics rt f^t vduc tirougtip'of'r or losr mcludc rlcritrntt:' frnrnciel liatrilitics hcld for

rrr&nu and furrnclt lbb rocs dcsrgnrrcd upon @rtul rccogrution as rt feu valut rhrr'u'lh pr"tir or l':''i ;;;;:;iiliil" ;;bssifi..r ,. i.la ro' Ld'ng ir thcv aic incuncr! ror thc pueosc or rcp'rchasi'g rn

ift" ".*.

,."t fftt" -,cgoq elso urcludcs dear'ltivc furaocrnl insuumens cntcred into br ih( (l'mPrnr'

th,rt ire not dcsigflatci es hcdgrng rnstrumcots rn hcdgc rehtnrnstr'rps as defncd bv Ind r\S l{})'

Scpentcd cmbcdded deritadlcr erc also clessi6ed es hcld for tnding unless thc! rrc dcsg ate'l as

tffective hcdging instrumcnts.t iains or bsscs in lebiliucs hcld for trrdrng rrc recognr'rcd in th' Pto6l or bss'

I rnincrel liab iues &signated uPon ruu2l rcc"gortbn rt frir rduc thr' 'ugh pn'[t or los' rrc dc''Sortcd

rs such at thc initial dric .rf rccognio.n, "nd

,,ni1 rf t}t coretia rn ln'l \S 109 rre s'usficd For Labrliuts

dcsrgrratcd es F\"I"I. fan vrluc g3ios/ losses ettributrblc to.'.Y:*: "'""':::1t.1"I-T"_::::'fl11:rur tiil. 'Ihcsc geins/ los! atc not sub.equcollv tra$fcrrcd to I'&l l-lowfl'cr' lhe Comlanl m'I tranitcr

\.

SBL SPECIALTY COATINGS PRIVATE LIMTTED(Formcrly loor.o er Seboo Coarings priv.rc Limi..d)NOTES TO FINANCIAL STATEMETiTTS AS AT AND FOR THE PERTOD ENDEDlrtARCH 3t 2020

:I :::!"_:. f- :l ','r< wrrhrn cauin.. ;\[ t,rhe! chrnges in faii r.1luc of such liabfin rre recognised rrrrnc sr:rtcmcnt ot tlmhr or l(,\s

l-oeos aad borro*ingr.\ ftrt ilitiel

.tccognioon, inrcrest-bce_dng bans rnd bortowings ere subscqueotlt measurcd at amonrsedc{'sr ushg thc IllR mcrhod. Gains aod rosscs ere rccogniscd in profit .rt loss whcn thc rirbilities arcdcrccognised es u.ell as rhnrugh tle IllR amortisanon p;css_

'\nr:nrcrl cost is cdcuLrcrl bv uling roro rcounr anr discounr or pr.num on rcqutsur.n and rees orc()tts thrr "'( an_ rnrcgnl part of th€ EIR. -llrc EIR amonr-saoon is rncluded as fin'rcr cosrs rn rhcstrtcnrcnt ofpm6t end krss.

Dc-rccognitioa.\ finencral L.bdin rs dcre<o8tused *,hcn rhc oblig2rion under rhc L.b ,r'is di$chlrgcd,,r c*ncdled.),<rptcs. \ltcn rn existing frnancial liabrln rs rcplaced bv rnorhcr fr,,ot ihc s.mc lendcr on subsonuallvdrft<.rent rcrms, or thc rerms of an cxis.ng liabilio are substenrial\ mtxhfed ,uc'

",, ;;;;;;m"difici.on s *eared rr rht'de-recognitit'n ofthe onginar tiabir.rn an,l rhe rccogortion .fr nc.u. liabirrnr n( d[crencc rn rc rcrpccnl c cllfnng llnounlr ls recog s€d m lh( stetcmmt of profit anJ lors

OfTserain& of 6naoci^l insarumcnrsIinancid asses and financi,rr riabirities are.ffsct and thc net.mounr is rcportcd in thc berance shert ifthcrr rs r curcndt cnforccrblc rcger right t.'ffset thc tccogtuse<r am.unts anrr tnerc rs 2n mteno(,n r{)((lllc ,rn i n.t b.srs. li, Galsc thc .ss€rs ind sddc tle liabrlitics suruluncr,ush.

3.11 Cash Floq Sa.rcocot

(l(\h nows rlc rcponcd usrog the iodirtct hcthod, {'herebr profir f<rr rhc period is arijusrcd for trrccffccfs of tr.lszctioo-r of a oon-cesh nrture, eny defetrrJr oi ".c-"f .rf p".l or furu.c ;pcrarng cxshrcccipts or prrtneots rnd ircm of incomc or crpcnses associerc<l uirh invcitiog or financrng cashiloss.'fhc

cesh flons ftom opcrating, investiog rnd finanong rcuylrics of rhc (.ompzll are scgrcg:rred.

3.18 Sigaificanr accooniing JudgemcoB, Estio.ics .od Asslmptioos

1.5-1a:: "t *nlrlrg rhc Compenr,s accounting prlicics, FrrnaScrnciu has marlc the follo*.ing(\Iunircs,.ssutnprrons and ludgEmmis u,hrch havc significant cffect on thc.nrounts rrco6,lizcd in thclrnenqrl stxtchcnr:

A. Iocoonc taxct

ludg'rneot of rhc.l\feorgancnt . rcq'ucd f<x ric calcuhtion of prorisr,n fot rocome rarics and detetrcdtax asses aod liebiiities. 'llrc compzl' re'ieu's et cach brlencc sirc. darc thc catnrng lm.unt

'fdefenedtix :rsscts. The factori rlred in cstimntes mar llffcr from rciurl outcomc rvhich codJ bad to signi6cant.r(lturtmrnr ro rhe rnounrs tcJrcned in rhc srandrlonc finzncnl statcmcnrsB. CoariogcocicgIudRmryri.of thc l\lan gcrncnt is. r.qured f(x csiirnaory ih€ tr)sxbic ouiftolr. of rcsour(cr, if an,, !ntr\frcr ot

-conoqiencrs/chrm/libgao.)lr rgeinsr thc compant as ir rs not possiblc ro pr.drci rt,",,rrrc,,me t,fpendrng nuncn wrth accuracr,

c.

SBL SPECIALTY COATINGS PRTVATE LIMITED(Formcrlsr ko*o rs $boo Coeringr privare LimircdjNOJES TO FINANCTAL STA1EMETffS S iT ANO FOR THE PERIOD ENDEDMARCH 31, 2tt20

I crde rcccrv2blcs do oor clra anr. mrcn'sr and arc itrrcd rr their oormar t;rtuc as reduce, bv appropriatcalosanccs for cstim*d irncorcrablc emounrs. lndiriduel nedc rccerr.rbl.s rr. rrnncn otf $Jr(nnranigcmcnr dechs rhcm noi collecriblc. lmprirment is madc on IlCi- ..,hi"; "* thc prcscnt r.aluc <,frhr cash shorrfall over the cxpecrcrl trfr ofthe financial essrts.

D. Fair Valuc Meegurcmeqt of Fioanci..l lasrrumcots,\\hen rhe feir ratues 'rf

'naocier asscts end firunciar lbbiriries rccordcd in rhc babnc! shccr crnoor bc

:_.i::.d b":d."'.potcd pnccs in activc merkers.,h",' f," ,;il ;.";;surecl usi,rg vrluari''rcchruqu.s hcludmg rhc [)iscountrd Cash floe (lx,l,) nDdel. l}rc .pr;, ;;,-;"". modch rrc rakenfrom obsen rblc merkets when p'ssibtc,trut s.r,"* *"'i, ,.iJ*"ii,]"]l i"gr; lr;"a*_.", i. ,".,"i,"ain cst l'lishing,farr ."t'es. Judgmcnrs inct"de. con"id.nJons ;;;;;; ;r.;";:Iq*dr$ rr\k, crcdu nskand rolao.hn. Changes in essumpuons zbout th.* f".,o.. ..rua "ii[, ,f,Jr"p.,,ii f"i,,"fu. "i,;,o*ia3.19 Cheago io accouatilg policiee

Ind AS 116 krscs. \ ci)otracr r:\, or c()otaios, a lcrsc if the ctn''

" p";J,lii","-;l-I;;'::':-:LT::::tttc)s tbc *ht to controrthc use orrn idcntific'lr asscr

Company rs a lcSsccThc Companv rccounrs for cach lcrsc comgrncnt *irhin the cont rct as a lcase sepererell, frrxn non,tc.sc componcnts of rhe conrrsc end aioceres lh"

".o.id";;; ; ;;-;;"*", !o .ech lcascc()mpoocnr on thc basis of tlrc tclativc stand_alooc pricc of the f.".. ."-iooln, and thc zg3rcgarcsrand doac pnce ofrhe nonJasc componenr.

,l]:a-:Tfit .."*ses right-.f-usc ass* rcprcscoting rrs .ghr ro use thc undct\.ing esser fot the lcascr(rrn er rhc tcasc aommenccmcor detc. .lte cost of rhe t{ah1,of,usc a"."r nrc^",.ire.l at urccption shrlicotnprise of thc emounr of rhe iniuel mcrsurencnr of thc Lse hafrli , ,Af*"i-nr. ,n" ,c2sc p.ymcnrsm:rde at or bcfoe thc comrncnceqrcm dxte lcss enr leasc incentir.es r;;.;;, ;il;rr. ,_""t drccr cosr:i

'ncutred end 2rt csu'n:rc of cosrs to r,c ,ncurred br. $".1T.:. ; il;;; and rcmo\.rn8 ,hcundcdvrng esscr.r rstonrp rhe un.rcrrling 2sset or sirc on wruch it rs r.*arcd. rhc'oght-of-use:rsscrs rssubscgucndy mesuted ar clst hss anr ".cL,rUt"a a"p.".,"tion.

".;;;; ;;"r*r"", ,rsses, rf an'and adjusted for env tcmeasurcmcnt .f rhc tcasc Ur,;fi,i.. m. igr,i"i**-;;;";;;r".;,J;.il;;strught-lioc mcthod fmm the cornmencement datc ovcr thc shiner ,:f lcrse tttm nr usctur lif-e .f right-of-use asset. 'fte .stin'red usclirl lives of nght_of-usc asscts ere detc"_".., ".,;l; ._"" r.u\rs rs rlrcse::ll:J::jr.1l11 equipmcnr R,ghr.of_L

""*," ; ;;;;;;;;;;;:;;;."".". rhc,e is anftrorquon tn t ricu qrrn iag emounrs ml nor bc recor.cnble, tmpr,._..n1 [,ss, riror., rs recognrseJ urfic statemcnr ofpro6r and loss

Tlrc compao.v rncas'rcs thc lcerc rrarrilin ar rhe prescnt vrluc ofthe rcas( parrncnis rhar arc nor pard rrthc commencemrnt date of tlre rcasc l'e rerse permcnts ere discounted r.ising thc rntcrrst ratc rmp'citrn rhe t€2st' ir rbrt r2rc can b€ tcadih ao.S"i"d rr,r'", -i.]".",""'f iJ.uv a"t.n,-.a, tl.Comprnr uses mcrmcntd bxrrro*.'r! *re. For lcasts rgit! ;;;;, ._,ll]r cnrr2cretuucs, theC.rnprny, on e lcesc bv lcesc bzsu. mav adop, "ia..,r,.

i"-or.niii".1;_iil" ,0".0. ," ,r. ,.r*or the rocemcatzl borto*rng rate for rhc pomouo as e wholc. The loscur ulc urclelDcorzt Dotto$ug rare for rhc.portfoLo as e wholc. The ls:sc prrments streu ncludc fi_rcd

nffi:ffi$"fr::;:. jlj_T_L_.-"t-"j.sranntccs,.cxercise pi."'oi"-p*.r,.,".,p,i-, *r,"..palmcnrs, vlpi '--"-l;I4]ry;'""$ul'

SDL SPECTALTY COATINGS PRIVATE LIMITED(Formcdy knor.n er Seboo Corrings priv..c Limircd)NOTES TO FINANCIAL STATEMENTS AS AT AND FOR THE PERIOD ENDEDtvlARCH 3L 2(n0

Itasc. ifthc lc'ase term rc0ecrs thc lcsscc cxcrcising en option ro terminatc tie lcesc. l'tre leasc liabrlitl isslbsclucntll rcmcasurcd by incrcrsing the carning amount to rc0cct intcrcst on thc leas€ lr,:lb in,rcrlucing tic carning amount ro tcfloct thc lersc lr:rm.nls rn2d{: ,od rcmesuing th( crr$-'irg rnrr,unr r(,r(tlccr rnri teasscssmcot or lea$ m(xlificaooos or t(, rcll€ct ttrisd m-subsancc fxcd lease prrmrnrr.I hc companl rccogniscs thc amounr of the rc-mc2surchcnt of l..sr liebrlin duc to modifieion es rnrrl;rrsrmcnt to thc ngh.of-usc rssrr lnd satemcot of proit and loss dependrng upon the nrrur( ofnrdifietion. \\'lrerc the crrnrrg imount of rlc nghcof-usc rsscr is reducc(l t. zrrr> and therc is :r

furthcr rcduction in the mcasurcmeot of the lqsc L^bihty, the (lompao) rccogrurrs anr' rcmarung:rnr)unt ofthc re'm€asutrmcnt in statcment ofprofit end loss.

-l hc (irmpanl hes clccred lor to rpllr thc lcguircmcots of lfld -\S I 16 l-eases to short-term lea:n ,.'f all

asscrs th3t hasc I basc tcrm of 12 months or lcs.s .nd lcascs for which the underlllng asset is i,f k,svrluc. Thc lcasc pa)-meots .ss()ci*cd *ith thcsc lcescs ere tccog rzcd rs rn cxptnsc on e streighr lncbNrs ol.€I thc L2{c rcrm.

Compen-v as e lcssor.\t thc inccpooo of thc leasc thc (iompenl classifics cach of its lcascs as either an oper trng lc^r or :r

hruocc leasc. The Oompenr, tccognircs lcase llvmcnts rcccivcd undcr opeiltrng lclse! r. incomc on lsnright-lioe besis ovct the lcase r€rm. In cesc ofe finrncc lcase, finance ioconrc is rrcognisrd olcr rhclcasc tcrm b*cd on a p:ncm rcflccnng a constant pcriodic trtc of rctum on tlrc lcssor's net inv$l|Dcntirl (hc lclse. \\'hcn thc Companv rs ro rntermcdhrc les3or it accounts for its inrcrcsts lt! ihc hc.d l.rscand thc subJee-sc scpentelr'. It *scsse: rhc leasc classiication of a rubJeese urth rtfcrence to rhc right..i-usc asset rnsurg from th€ head lcasc, not *ith refi:rcncc to thc undcdrrng as.tt. lf a hcad lcasc rs rsh{,rt tcrm le^€ ro \rhich thc Company applies the cxcmpoon dcscnbed abo{c, thcn ll chssiEcs the sub-lc:rsc rs an opcnting lezsc.

'lhc Company evaluates if an lrrnng.menl qualifics lo be a lease as pcr the rcquircmcnts (rf Ind .\sI16. ldcouication ofa lease rc'1urs signiEcant jr,rd6'rnent. Thc Oonrpanr- uses $lgrulicant iudgcmcnt rrr

nsscssing th€ le.se term (ucluding entiopatcd rcncw.Ls) znd thc llplrcable discount rrte.

l hc (iompmr dere.rtrlcc: the lcerc tcm :s thc oor-cancclrbld perio<t of a lcesc, togcthct with bothpcno& cotcred by en optioo to exrend thc lc.sc, if thc Comprnr rs .easonabll ccnain to cxcrcrse Ihat('puoo; eod pctiods col'crcd bv .n optioo to remrinate thc lcesc if tic Compaor' rs reesonablr- cenrin notro excrcise thrt option. In rssessing whctbct the Compeor is rcrsonabll' cctain lo (\crcrse.n opDon rocxtcnd a le1sc, or dot to cxcrcirr rn option to terrninatc r lcesc, it considers all relcraot facu eodcrrcumstanccs thrt create ao economic incentrr'c for thc Companl (o excrci-sc thc optioo ro cxrefld (he

lcasc, or oot to cxercisc thc oprirxl to rcrminarc thc lcaic.

-llc Companr rcrircs the leesc tcnrr if thcrc rs r chengt in thc non-canccllable penod of r lersc. l'liL

discouni lzte i5 gcDenllt besed oo thc rncrcomtd bonourng rrte spccific to thc lcasc betrg claluatcd orfor a ponfolo of lcr.ses nith similrr charactensucs.

Tr.rosirioo to hd AS 116

'l-hc l\Loisav of Cogoste .{ffairs has ootiied Indien ,\ccouoting Steadard I 16 (lnd ,{S 116'), I.rrrcs,widr cffcct from Apnl 1,2019.'l-hc Sraudard pdmarilv rcguics the Oompan), as a l(ssce, ro rccognuc, rrth( cornmcnccment of thc lcesc a nght-to-u:e rssu rnd a lcasc lirbility (represcntrng prcsent valuc ofunpard lc,sc deprccutcd and the lssc librLtl

SBL SPECIALTY OOATINGS PRIVATE LIMITED{F::lcdy_knoE '. Sabo Co.ri^gs priva.c Linit.d)NOTES TO FINANCIAL STAiEMENTS AS iT.IND FOR THE PERIOD ENDEDMARCH 31,2(E0

rcj--uced whcn pri4 wirh the inrerert on rhe lcase liabiliry bcing recoga;ed as financc cosi.s, sub,!.ct rocenaln rcdlersu.chcnt .diusarhcnrs. Thc Compaoy tas "te.tca to."pplr rhrs iiroaara to its leascstuospecuvcly ro cech prior rcponing pcnod prcscotcd (ljull Rcuospeitivc rpplicroon). Cons€queni rou'c ru]l Erlospccaivc rpplicruon (a) rhc opeorog talence of cquiw as, rr .fpJT ZOr s r,." becn rcstatcd,accordingll the compeny h* restrtcd co'paati'c infounation and thc curnureovc cffect of rnitiarh

:iijir"ff.;fr9:. "s beco rc.cosnised ai zn

"ai*oo*r to o. op.Jig-iiil..,r,.,",n.a o*;g.

As per oul Eport of eveo date attacfedFor S. S. KOTHARI MEHTA & COMpAtryChrrtered AcctuttrDta

For r|!d otr beL.lf of thc Bo|fd of Dirc$ors of

r50N

Hrrish GuptePartneiMembership

Piace: \.: J f'^Darc: | 6'n Jure, 2020

(Managing Director)DIN' 0q356q35 I,.1 r4llr l;':rl i

Srldcep Clow0a j

(Chief Finahcial Officer)

(Director)DIN:03439076

?ui" Uon&77"xhi6-.ct-- Z,l,:-oJAv'

Specirlty Co.tings privrte LioritedFirm's