Asian Paints Limited announced a significant change in its statutory auditing arrangements, with the Board of Directors approving the appointment of S R B C & Co. LLP as the company's new statutory auditors for the next five-year term.

Board Decision and Timeline

During the board meeting held on March 26, 2026, directors approved the appointment based on the Audit Committee's recommendation. The new auditing arrangement will commence from the conclusion of the 80th Annual General Meeting for financial year 2025-26 and continue until the conclusion of the 85th AGM for financial year 2030-31.

Auditor Transition Details

The appointment represents a transition from the current statutory auditors, Deloitte Haskins & Sells LLP, who will complete their second consecutive five-year term upon the conclusion of the upcoming 80th AGM. This change aligns with regulatory requirements and corporate governance practices.

New Auditor Profile

S R B C & Co. LLP brings substantial experience to the role as Asian Paints' statutory auditor. The firm is a limited liability partnership incorporated in India and registered with the Institute of Chartered Accountants of India. Established in 2002, SRBC maintains its registered office in Kolkata with offices across key cities in India.

The firm holds a valid peer review certificate no. 023917, which remains valid until February 28, 2029. As part of the S. R. Batliboi & Associates network, SRBC specializes in providing comprehensive financial services including:

• Audit and assurance services
• Tax consultancy
• Financial accounting advisory services

The network firms serve diverse market segments, auditing both listed and private companies across various industries.

Regulatory Compliance

The appointment follows all applicable provisions of the Companies Act, 2013, along with rules issued thereunder and SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Asian Paints has received the necessary documentation from SRBC, including consent for appointment, certificate of eligibility, and confirmation of non-disqualification under Sections 139, 141 and other applicable provisions of the Companies Act.

The company has fulfilled its disclosure obligations under Regulation 30 of the Listing Regulations, providing comprehensive information about the auditor change to stock exchanges. The appointment requires final approval from shareholders at the upcoming 80th Annual General Meeting before taking effect.

Asian Paints ' subsidiaries Harind Chemicals and Pharmaceuticals Private Limited and Nova Surface-Care Centre Private Limited have received board approval for their amalgamation scheme on March 24, 2026. The boards of both subsidiary companies approved the Scheme of Amalgamation with Nova as the Transferor Company and Harind as the Transferee Company, subject to regulatory approvals.

Board Approval and Regulatory Framework

The amalgamation was formally approved at the respective board meetings held on March 24, 2026. Asian Paints has informed stock exchanges BSE and NSE under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company emphasized that this scheme will not have any material impact on its financials.

Company Structure and Financial Details

Nova Surface-Care Centre is a wholly-owned subsidiary of Harind Chemicals, while Asian Paints holds a 51% stake in Harind. Nova was incorporated on September 7, 2011, and Harind on June 6, 1995. The financial performance as of March 31, 2025, shows significant size differences between the entities.

Business Operations and Strategic Rationale

Nova operates in testing services for paints and related chemicals, while Harind manufactures and deals in chemical products related to paints. The amalgamation rationale centers on operational efficiency, as Nova's laboratory capacity is exclusively used by Harind with minimal third-party commercial engagements.

The company stated that operating Nova as a separate entity is no longer strategically necessary. The amalgamation will streamline operations, reduce regulatory compliance multiplicity, generate administrative cost economies, and facilitate consolidated management.

Transaction Structure

The amalgamation involves no cash consideration as Harind holds Nova's entire share capital through itself and nominees. Upon scheme effectiveness, all Nova equity shares will be cancelled and extinguished. The transaction qualifies as a related party transaction conducted at arm's length in ordinary business course, with requisite Audit Committee approvals obtained.

Source: Company/INE021A01026/6892fa43-e94c-4cd6-b1af-4a0d8d15d8c0.pdf