Shalimar Paints Ltd. — Capital/Financing Update 2020

Jun 30, 2020

	SHALIMARPAINTS
	2020June30,
SecretaryThe	DepartmentListing
LimitedBSE	ExchangeNationalStockIndiaofLtd.
DepartmentCorporateRelationship	Exchange5"Plaza,Floor,
JeejeebhoyTowersPhiroze	G-BlockPlotNo.,C/1,
25thStreetFloor,Dalal	Complex,BandraBandraKurla
Mumbai-400001	Mumbai-400051

Reference Scrip Code- NSE-SHALPAINTS, BSE-509874

Subject- Submission of Report of Monitoring Agency

Dear Sir/Madam,

Please find enclosed report of Monitoring Agency given by State Bank of India, Industrial Finance Branch 102 Natraj, 194, Sir, M.V Road, W.E Highway- Metro Junction, Andheri (E) Mumbai-400069, along with the Board Comments on the same.

We request you to kindly take the same on records and acknowledgement receipt.

This is for your information and records.

Thanking you For Shalimar Paints Limited

Ashish Kumar Bagri Chief Financial Officer gE not"

| Shalimar Paints Ltd.

Shalimar Paints Limited, Stainless Steel Centre, 4th floor, Plot No -50, Sector 32, Gurgaon -122 001

SBI/IFB AND/AGM&RM/AMT-IV/2012-2 1/45 Date: 09.06.2020

Dear Sir,

SHALIMAR PAINTS LIMITED REPORT OF THE MONITORING AGENCY.

With reference to above please find enclosed report of the monitoring agency as on 31.03.2020 for the Rights Issue proceeds in the prescribed format.

Yours faithfully,

Leiden

AGM & Relationship Manager

bank.sbi . a, +01 22 2681 9700 athatites fare yma, attri, aieifiren fare eran, aftrdt, Industrial Finance Branch, Andheri, +91 22 2682 3370 / 2682 1310 102, TEAM, 194, Ae Hae. aT, 102, ACT, 194, We Og, ATF, 102, Matra Teas iMAVaRoad, Gel +91 22 2683 3004 / 2683 1648 Wg. ATT-Aet stares, afer (qd), Wy. aTE-aa stews, ater (Be), W.E. Highway-Metro Junction,

Andheri (E), Mumbai - 400 069. sbi.04732@sbi.co.in Trad - 400 069, sad - 400 069

SCHEDULE XI - FORMAT OF REPORT TO BE SUBMITTED BY THE MONITORING AGENCY [See regulation 82(2) and 82(3)|

Report of the Monitoring Agency Name of the issuer: Shalimar Paints Limited

For quarter ended: 31** March 2020.

Name of the Monitoring Agency: State Bank of India, Industrial Financial Branch, Andheri East, Mumbai- 400069

(a) Deviation from the objects: Due to lower Subscription of 92.28% in the Rights Issue, the proceeds from the Rights Issue amounted to Rs. 20,087.24 Lakhs instead of Rs. 21,767.15 Lakhs as per the Letter of Offer. Accordingly, the amount allocated in some of the Objects has been modified. In view of additional Working Capital requirement, there is increase in the allocation of funds towards Long Term Working Capital Requirement — The major Object of the Issue. Further, the same is adjusted through reduction in estimated | cost of Setting up of Paints manufacturing plant at Nashik including Regional Distribution Centre (RDC) at | Nashik.

(b) Range of Deviation*: The Company received Rs. 20,087.24 Lakhs from the proceeds of the Rights Issue in view of lower subscription instead of Rs. 21,767.15 Lakhs. Accordingly, the amount allocated in some of the Objects was modified. Further, in view of additional Working Capital requirements and reduction in estimated cost of Setting up of Paints manufacturing plant at Nashik including Regional Distribution Centre (RDC) at Nashik, the utilisation for Long Term Working Capital has increased by 3.21%.

Declaration:

We declare that this report is based on the format prescribed by the SEBI (ICDR) Regulations, 2018, We further declare that this report provides a true and fair view of the utilization of the issue proceeds.

We declare that we do not have any direct/indirect interest in or relationship with the issuer/promoters/ directors/management and also confirm that we do not perceive any conflict of interest in such relationshipéinterest while monitoring and reporting the utilization of the issue proceeds by the issuer. However, we are one of \he Bankers to the Company and have extended Credit Facilities to it. ete | ae / pe anda

Name and designation of the Authorized Signatory: Mr Satyendra Kumar 1G CA» Designation of Authorized person/Signing Authgrity: AGM & RM sen ee Gon.

Seal of the Monitoring Agency: Date: [09.06.2020]

Signature: For STATE BANK OF

Ind. Finance Br. Andheri (E). atrahftres Pareer errear, thet (9g), sand st.

1) Issuer Details:

1. Details of the arrangement made to ensure the monitoring of issue proceeds:

Issuer Details:
1)Name of the issuer : Shalimar Paints Limited
Names of the promoter : Mr. Ratan Jindal and Hind
Strategic Investments
whichIndustry/sectorbelongs:toitCoatings	Paint	&
Issue Details2)
Issue Period : December 03, 2018 to December 24,
2018
Type of issue (public/rights) : Rights Issue
Type of specified securities : Equity Shares of theCompany
IPO Grading, if any : Not applicable
Issue size (Rs, fn Lacs) : Rs.21,767.15 Lakhs (Final
Figure of Subscription was Rs, 20,087.24 Lakhs)
madearrangementDetailstheof3)	ensureto	the
monitoring of issue proceeds:
(Give item by item description for all the objects statedin the offer document separately in following format)
Particulars		Reply Comments of the	Comments the
		Monitoring Agency Board of	Directors
Whether all utilization is as per the disclosures in Yes/		Yes#	:
the Offer Document?	No
Whether shareholder approval has been obtained Yes/
in case of material deviations# from expenditures No		No
disclosed in the Offer Document?	Yes/	No
Whether the means of finance for the disclosed	No
objects of the issue has changed?Is there any major deviation observed over the	Yes/	No
earlier monitoring agency reports?	No
Whether all Government/statutory approvals	Yes/	Yes
related to the object(s) have been obtained?	No	Yes
Whether all arrangements pertaining to technical Yes/	No
assistance/collaboration are in operation?Are there any favorable events improving the	Yes/	Yes
viability of these object(s)?	No
Are there any unfavorable events affecting the	Yes/	No
viability of the object(s)?	No	No
Is there any other relevant information that maymaterially affect the decision making of the	Yes/No

However, the utilization in different heads of the Objects of the Issue had to be modified in view of lesser proceeds collected in the Rights Issue due to lower subscription to the extent of 92.28% and as well as slightly changed requirement in various heads.

*Where material deviation may be defined to mean:

(a) Deviation in the objects or purposes for which the funds have been raised

(b) Deviation in the amount of funds actually utilized by more than 10% of the amount projected in the

offer documents.

1. Details of object(s) to be monitored:

(i) Cost of object(s)

(Give Item by Item Description for all the Objects Stated in Offer Document separately in following format)

	Give Item by Item Description for all the Objects Stated			in Offer Document separately in following format)		(Rs. In Lacs)
$\tilde{\mathbf{z}}$si.	Item Head	(as per the OfferOriginal CostDocument)	Revised Cost *	Comments of the Monitoring Agency	Comments of the Board of DirectorsfinancingProposedoptionReason ofrevisioncost	Particulars ofarrangementsmadetirm
l(a)	Reinstatement of paintmanufacturing plant atProject ofNashik	5,152.13	5152.13 Revised to5075.78 Lacs	No significant Change
2(b)	Setting up of RegionalDistribution Centre(RDC) at Nashik	340.00	340 (Revised to40.00)	The revised cost of smaller RDC would be Rs. 40Lacs.
2	Capital RequirementsLong Term Working	13,500.00	12,187.80 (FurtherRevised to12,564.15)	Working Capital Requirements has been increasedIn view of Lower Subscription at 92.28% in theRights Issue, the amount allocated was reducedafter allotment in the Rights Issue. Further, toby Rs.376.35 Lakhs to Rs. 12,564.15 LakhsRequirement, the allocation for Long Termmeet the additional Working Capital
S	General Corporatepurposes	3,782.75	3,415.07	In view of Lower Subscription at 92.28% in theRights Issue, the amount allocated was reducedafter allotment in the Rights Issue
4	Expenses for the issue	92.00	92.00	No Change in Proposed cost
	Total	22,866.88	21,186.99
		* I~al-al-a Da OOO 7 of 2 al-a falam Diate Iaan		reach and D = 1000 72 labba reached on Incurrence alsin for Mark Diam

Including Ks.20087.26 Lakhs from Rights Issue proceeds and Ks. 1099.73 lakhs received as Insurance claim for Nashik Plant.

$\omega$

Item Head	proposed in theAmount as	As at beginning ofthe quarter (	Amount utilized till March 31, 2020		Total	Comments of the		Board of DirectorsComments of the(Rs. In Lacs)
	Revised)*DocumentOffer	IncludingInsurance claimproceeds)	During thequarter	At the end ofthe quarter	unutilizedamount	Monitoring Agency	Reasonsfor idlefunds	course ofProposedaction
Reinstatement of	5075.78 LacsRevised to5152.13	4,676.93	152.45	4,829.38	246.40	disclosed in LetterUtilisation asof Offer #
	340 (Revisedto 40.00)	18.55	21.45	40.00		cost given Cost ofAs per the revisedObject(S)#
Working Capital	Revised to12,187.8012,564.15)(Further	12,564.15		12,564.15	$\blacksquare$	Rs. 13,500.00 LakhsModification fromto Rs. 12,187.8012564.15 LakhsLakhs*. Furtherrevised to Rs.
General Corporate	3,415.07	3,415.07		3,415.07		Rs. 3,782.75 LakhsModification fromto Rs. 3,415.07Lakhs.
Expenses for the	92.00	92.00		92.00		disclosed in LetterUtilisation asof Offer
	21,186.99	20,766.69	173.90	20,940.59	246.40

(ii) Progress in the object(s) -

4

* In view of Lower Subscription in the Rights Issue, the amount allocated to the Objects were reduced.

#As on March 31, 2020, Rs. 246.40 Lakhs are outstanding which are being paid to vendors of Project.SProvide following details under Item Head:

(a) Name of the object(s):

(b) Brief description of the object(s):(c) Location of the object(s) (if applicahle):(iii) Deployment of untilised PDO monocole

	(iii) Deployment of unutilised IPO proceeds:					(Rs, In Lacs)
ż	Type of instrument and name of the entitynvested in	ivestedAmount	Aaturitdate	Laming	Return on Investment(96)	Market Value as at the end of$\mu$ arter $*$
	Balance with Bank	246.40		∕Z		246.40
	Total Available balance	246.40				246.40

* Where the market value is not feasible, provide NAV/NRV/Book Value of the same (iv) Delay in implementation of the object(e)

$\overline{a}$

		course of actionProposed
KS. In Lacs)	Comments of the Board of Directors	Reason of delay
	Delay	months)$rac{\text{or}}{\text{days}}$	2 Month
	Completion Date	Actual*	Completed in May 2019commercial productionstarted in August 2019	Completed in March 2020 12 Month	Completed	Completed	Completed
		As per the OfferDocument	31-03-2019	31-03-2019	31-03-2019	31-03-2019	31-03-2019
IV) Delay in umplementation of the object(s)		Object(s)	Project of Reinstatement of paintmanufacturing plant at Nashik	Setting up of Regional DistributionCentre (RDC) at Nashik	Long Term Working CapitalRequirements	General Corporate purposes	Expenses for the issue

* In case of continuing object(s), please specify latest/revised estimate of the completion date.

LO.

Details of the arrangement made to ensure the monitoring of issue proceeds:

(Give item by item description for all the objects stated in the offer document separately in following format)

	SHALIMAR
	PAINTS
Details of the arrangement made to ensure the monitoring of issue proceeds:
(Give item by item description for all the objects stated in the offer document separately in following
format)
Particulars	Reply	Comments of the	Comments the
		Monitoring Agency	Board of Directors
Whether all utilization is as per the disclosures inthe Yes/		Yes#	Yes#
Offer Document?Whether shareholder approval has been obtained in	NoYes/		No
case of material deviations# from expenditures	No	No
disclosed in the Offer Document?
Whether the means of finance for the disclosedobjects of the issue has changed?	Yes/No	No	No.
Is there any major deviation observed over the earlier Yes/		No	No
monitoring agency reports?	No
Whether all Government/statutory approvals relatedto the object(s) have been obtained?	Yes/No	Yes	Yes
Whether all arrangements pertaining to technical	Yes/	Yes	Yes
assistance/collaboration are in operation?	No
Are there any favorable events improving theviability of these object(s)?	Yes/No	Yes	Yes
Are there any unfavorable events affecting the	Yes/	No	No
viability of the object(s)?	No
Is there any other relevant information that maymaterially affect the decision making of the	Yes/No	No	No

However, the utilization in different heads of the Objects of the Issue had to be modified in view of lesser proceeds collected in the Rights Issue due to lower subscription to the extent of 92.28% and as well as slightly changed requirement in various heads.

*Where material deviation may be defined to mean:

(a) Deviation in the objects or purposes for which the funds have been raised

(b) Deviation in the amount of funds actually utilized by more than 10% of the amount projected in the offer documents.

Shalimar Paints Ltd. Corporate Office: 1" Floor, Plot No. 28, Sector 32, Gurugram - 122001, Haryana Regd. Office: Stainless Centre, 4" Floor, Plot No. 50, Sector 32, Gurugram - 122001, Haryana. Call: +71 124 461 6600 Fax: +91 124 461 6659 Toll Free: 1800-103-6509: Email Id: askus(@shalimarpaints.com. Website: www.shalimarpaints.com CIN; L24222HR1902PLC065611

	Details of object(s) to be monitored:(i) Cost of object(s)
				(Give Item by Item Description for all the Objects Stated in Offer Document separately in following format)		(Rs. In Lacs)
					Comments of the Board of Directors
$\overline{N}$SI.	Item Head	(as per the OfferOriginal CostDocument)	$Cost *$Revised	Comments of the Monitoring Agency	Reason of cost revision	financingProposedoption	Particulars ofarrangementsmadefirm
1(a)	Reinstatement ofplant at NashikmanufacturingProject ofpaint	5,152.13	Revised78 Lacs5152.13to 5075.	No significant Change	No significant Change	$\overline{M}$	$\frac{1}{2}$
2(b)	Centre (RDC) atSetting up ofDistributionRegionalNashik	340.00	340 (Revised to40.00)	The revised cost of smaller RDC wouldbe Rs. 40 Lacs.	Smaller Regional DistributionCentre (RDC) has been setup.	NA	NA
$\mathbf{C}$	Working CapitalRequirementsLong Term	13,500.00	(Further Revisedto 12,564.15)12,187.80	allocated was reduced after allotment in92.28% in the Rights Issue, the amounthas been increased by Rs.376.35 LakhsTerm Working Capital RequirementsRequirement, the allocation for Longthe Rights Issue. Further, to meet theIn view of Lower Subscription atadditional Working Capitalto Rs. 12,564.15 Lakhs	In view of Lower Subscriptionincreased by Rs.376.35 Lakhsat 92.28% in the Rights Issue,reduced after allotment in theRights Issue. Further, to meetthe amount allocated wasallocation for Long TermCapital Requirement, thethe additional Workingto Rs. 12,564.15 LakhsRequirements has beenWorking Capital	$\mathbb{X}^{\mathsf{A}}$	$\underset{N}{\geq}$
3	General Corporatepurposes	3,782.75	3,415.07	92.28% in the Rights Issue, the amountallocated was reduced after allotment inIn view of Lower Subscription atthe Rights Issue	In view of Lower Subscriptionat 92.28% in the Rights Issue,reduced after allotment in thethe amount allocated wasRights Issue	$\sum_{i=1}^{n}$	NA
$\overline{4}$	Expenses for theissue	92.00	92.00	No Change in Proposed cost	$\tilde{X}$	$\sum_{i=1}^{n}$$\frac{A}{2}$	$\tilde{M}$
	Total	22,866.88	21,186.99
		* Including Rs.20087.26 Lakhs from Rights Issue		proceeds and Rs. 1099.73 lakhs received as Insurance claim for Nashik Plant.			٦

LTD

$VH$

(ii) Progress in the object(s) -

ТD Comments of the Board amount will be paid as respective course of Proposed retention Balance $\sum_{i=1}^{n}$ $\stackrel{\triangle}{\simeq}$ PO and clause. action of Directors per $VL$ COVID19 Rs. In Lacs) FullyUtilised FullyUtilised FullyUtilised supply & structural Reasons for idle delay in Due to Due to funds the Monitoring 12564.15 Lakhs Comments of Lakhs*. Further 3,782.75 Lakhs to Rs. 3,415.07 Letter of Offer given Cost of Utilisation as revised to Rs. Modification Modification disclosed in Lakhs to Rs. Agency revised cost Object(S)# As per the 12,187.80 13,500.00 from Rs. from Rs. Lakhs. $#$ 246.40 (Give item by item description for all the Objects stated in the Offer Document in the following format) unutilized amount Total I. Ä At the end of 12,564.15 40.00 4,829.38 3,415.07 the quarter Amount utilized till March 31, 2020 152.45 21.45 During the quarter ï $\mathbf{r}$ IncludingInsurance claim As at beginning of the quarter 4,676.93 12,564.15 18.55 3,415.07 proceeds) 5075.78 Lacs proposed in Document ( Amount as (Revised to $40.00$ ) Revised)* the Offer Revised to12,564.15) 3,415.07 Revised to 12,187.80 5152.13 Further 340 manufacturing plant at Nashik Reinstatement Item Head Centre (RDC) Requirements RegionalDistribution Setting up of Long TermWorking Project of Corporate at Nashik purposes of paint Capital General $l(a)$ siXo $2(b)$ $\tilde{\mathcal{E}}$ $\mathbf{C}$

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