Siddhika Coatings Limited reports 100% utilisation of its CSR obligation, with the full amount directed towards eligible social welfare activities in Delhi NCR
NEW DELHI (India CSR): Siddhika Coatings Limited spent Rs. 14.36 lakh on Corporate Social Responsibility (CSR) activities during the financial year 2025-26, meeting its full statutory obligation under Section 135 of the Companies Act, 2013. The company reported that the entire prescribed CSR amount of Rs. 14,36,994 was spent on eligible CSR activities in accordance with its CSR Policy and the provisions of the Companies Act.
The CSR spending of Siddhika Coatings Limited during FY 2025-26 was focused on Education and Women Empowerment. The company implemented the CSR activities in Delhi NCR through an implementing agency. The company also reported that there was no unspent CSR amount for the year, no administrative overhead expenditure, no impact assessment expenditure, and no creation or acquisition of capital assets from CSR funds.
CSR Applicability and Legal Framework
Siddhika Coatings Limited came under the ambit of CSR provisions for FY 2025-26. Under Section 135 of the Companies Act, 2013, eligible companies are required to spend at least two percent of their average net profits of the immediately preceding three financial years on CSR activities listed under Schedule VII of the Act.
For Siddhika Coatings Limited, the average net profit calculated under Section 135(5) stood at Rs. 7,18,49,706. Based on this figure, the company’s CSR obligation for the financial year was Rs. 14,36,994. The company reported that it spent the full amount. This reflects complete compliance with the CSR spending requirement for the year.
The company’s CSR Policy aims to contribute towards sustainable development and social welfare through projects and programmes covered under Schedule VII of the Companies Act, 2013. This policy orientation places the company’s CSR programme within the larger national framework of corporate participation in inclusive development.
Key CSR Spending Data for FY 2025-26
The CSR disclosures of Siddhika Coatings Limited present a clear and simple picture of compliance. The total amount required to be spent was Rs. 14,36,994. The company spent Rs. 14,36,994. The unspent amount was Nil. The amount available for set-off from preceding financial years was Nil. Surplus arising from CSR projects of previous years was also Nil.
The full CSR amount was spent against projects classified as “other than ongoing projects.” The selected Schedule VII area was Education and Women Empowerment. The geographical location of implementation was Delhi NCR. The mode of implementation was through an implementing agency.
This means that the company did not carry forward any CSR liability for FY 2025-26. It also did not report any excess amount available for set-off. The CSR programme, therefore, remained a fully utilised and closed compliance cycle for the year.
Education and Women Empowerment as CSR Priorities
The company’s choice of Education and Women Empowerment is significant. Both areas are central to inclusive growth and social mobility. Education creates long-term capability. It improves knowledge, skills, confidence, and access to opportunity. Women empowerment strengthens families, communities, and local economies. Together, these two themes represent a meaningful social investment.
Although the annual report does not provide project-level details such as beneficiary count, implementing agency name, activity description, or outcome indicators, the selected areas fall within the recognised CSR framework under Schedule VII. The focus on Delhi NCR also indicates that the company directed its CSR resources towards a defined geography, which can help in localised monitoring and implementation.
For a company with a CSR obligation below Rs. 15 lakh, focused spending can be more effective than fragmented donations. By choosing Education and Women Empowerment, Siddhika Coatings appears to have directed its limited CSR pool towards themes that can create long-term human development value.
No CSR Committee Required
Siddhika Coatings Limited was not required to constitute a CSR Committee for FY 2025-26 because its CSR obligation did not exceed ₹50 lakh. Under Section 135(9) of the Companies Act, 2013, where the CSR amount to be spent does not exceed ₹50 lakh, the requirement of constituting a CSR Committee is not applicable. In such cases, the functions of the CSR Committee are discharged by the Board of Directors.
The company has disclosed that the Board discharged the CSR functions during the year. This is important from a governance perspective. It shows that the CSR responsibility remained under the supervision of the Board even though a separate CSR Committee was not required.
CSR Governance and Monitoring
The Board of Directors confirmed that the implementation and monitoring of the CSR Policy were in compliance with the CSR objectives and policy of the company. This responsibility statement is a key part of CSR governance. It places accountability on the Board for ensuring that CSR funds are spent in line with the law and the company’s policy framework.
The company also disclosed that impact assessment was not applicable. This is in line with the scale of its CSR spending. Impact assessment requirements generally apply to larger CSR projects meeting prescribed thresholds. Since Siddhika Coatings’ CSR obligation was relatively modest, the non-applicability of impact assessment is understandable.
The company further reported Nil administrative overheads. This indicates that the entire CSR amount was reported as programme expenditure. No part of the CSR obligation was consumed by administrative costs.
Financial Context of CSR Spending
Siddhika Coatings Limited reported strong financial performance during FY 2025-26. On a standalone basis, the company’s sales and other income stood at about Rs. 56.19 crore, while profit after tax was about Rs. 9.86 crore. On a consolidated basis, sales and other income stood at about ₹59.27 crore, and profit after tax was about Rs. 10.39 crore.
The CSR obligation of Rs. 14.36 lakh was based on the company’s average net profit under Section 135(5), not on current-year profit. As a share of the company’s standalone profit after tax for FY 2025-26, the CSR spending represents roughly 1.46%. As a share of standalone sales and other income, it represents around 0.26%. These figures provide useful context, though the legally relevant benchmark remains two percent of average net profit as defined under the Companies Act.
The company’s financial strength, including record performance mentioned by the management, provides a supportive base for CSR continuity. As profitability grows, future CSR obligations may also increase, giving the company an opportunity to develop deeper and more measurable social programmes.
Implementation Through Agency
The CSR spending was routed through an implementing agency. This model is common among companies that prefer to use specialised partners for grassroots implementation. Implementing agencies can bring field experience, beneficiary networks, operational capabilities, and monitoring systems.
However, the annual report does not name the implementing agency. It also does not provide details about the specific education or women empowerment programme. For stronger transparency in future reports, the company may consider disclosing the name of the implementing agency, project title, number of beneficiaries, district-wise location, activity design, measurable outputs, and outcomes achieved.
Such disclosures would improve stakeholder understanding. They would also help investors, communities, and CSR observers assess the quality and impact of the company’s social investment.
| Particulars | Details |
|---|---|
| Company Name | Siddhika Coatings Limited |
| Financial Year | FY 2025-26 |
| CSR Applicability | Applicable under Section 135 of the Companies Act, 2013 |
| Average Net Profit | ₹7,18,49,706 |
| Prescribed CSR Obligation | ₹14,36,994 |
| Total CSR Amount Spent | ₹14,36,994 |
| CSR Utilisation | 100% |
| Unspent CSR Amount | Nil |
| Excess CSR Amount for Set-off | Nil |
| CSR Committee Requirement | Not required, as CSR obligation did not exceed ₹50 lakh |
| CSR Function Discharged By | Board of Directors |
| CSR Project Type | Other than ongoing project |
| Focus Areas | Education and Women Empowerment |
| Project Location | Delhi NCR |
| Mode of Implementation | Through implementing agency |
| Administrative Overheads | Nil |
| Impact Assessment Expenditure | Not Applicable / Nil |
| Capital Asset Created | No |
| Key CSR Message | Full CSR obligation utilised for eligible social welfare activities |
No Unspent Amount and No Capital Asset
The company reported Nil unspent CSR amount for FY 2025-26. This is an important compliance indicator. It means there was no requirement to transfer unspent funds to a special account or fund under the applicable CSR provisions.
The company also stated that there was no creation or acquisition of capital assets through CSR spending. This suggests that the CSR expenditure was likely directed towards programme-based activities rather than physical asset creation. In education and women empowerment, this may include support programmes, training, learning assistance, awareness activities, or other eligible interventions, though the annual report does not specify the exact nature of activities.
CSR Policy Orientation
The CSR Policy of Siddhika Coatings Limited aims to support sustainable development and social welfare. This broad objective aligns with the spirit of CSR in India, where companies are expected to participate in social development beyond business operations.
The selected themes of Education and Women Empowerment also resonate with the company’s brand philosophy of “Invest in Human.” While the annual report uses this phrase in the company’s broader identity and human-resource context, the CSR spending direction also reflects a human development orientation.
Areas for Stronger Future Disclosure
Siddhika Coatings Limited has met its CSR compliance requirement for FY 2025-26. The company has disclosed the key statutory data points: obligation, amount spent, unspent amount, project category, location, implementation mode, overheads, impact assessment, and capital asset status.
However, future CSR reporting can be further strengthened. The company may disclose the project title, implementing partner, beneficiary profile, intervention model, duration of project, monitoring mechanism, and measurable outcomes. It may also consider sharing photographs, case studies, third-party verification, and impact stories.
Since the spending is focused on Education and Women Empowerment, outcome indicators could include number of girls or women supported, number of students assisted, training hours delivered, scholarships provided, livelihood skills imparted, learning materials distributed, or institutional partnerships created.
Such disclosures would move the CSR report from compliance reporting to impact reporting.
About the Compnay: Siddhika Coatings Limited
Siddhika Coatings Limited is a publicly listed company engaged in the paints, coatings and allied contract services business. The company is recognised as India’s largest single brand paint contract company and operates with the brand philosophy “Invest in Human.” The company’s registered office is located at L-9, Lower Ground Floor, Kalkaji, New Delhi – 110019.
The company is listed on the National Stock Exchange of India Limited under the trading symbol SIDDHIKA. Its Corporate Identification Number is L45400DL2010PLC206024. Siddhika Coatings Limited has built its business around painting and coating solutions, paint-related contracts, allied product sales, and contracting services.
The company’s business activities include oil paints, distempers, colours, varnishes, enamels and related coating solutions. During FY 2025-26, there was no change in the company’s core business activities. The company continued to focus on its established area of paint and coating contract services.
Siddhika Coatings Limited has a presence across key Indian business locations. Apart from its registered office in New Delhi, the company has branch offices in Kolkata, Bengaluru, Hyderabad and Mumbai. This multi-city presence supports its service delivery model and helps the company serve customers across different regions.
The company’s leadership is headed by Charitra Maheshwari, Managing Director. The Board also includes Gaurav Agarwal and Manvendra Pratap Singh as Executive Directors. The independent directors include Inderpal Singh, Asha Mittal and Amitabh Agrawal. The finance function is led by Chandan Tiwari as Chief Financial Officer, while Ms. Pooja Agrawal serves as Company Secretary.
Siddhika Coatings Limited has two subsidiary companies: AB Coatings Private Limited and SCL Contracts Private Limited. Both subsidiaries support the company’s broader business structure. The annual report states that consolidated financial statements include these subsidiaries as part of the company’s group reporting.
FY 2025-26 was a strong year for Siddhika Coatings Limited. The company reported growth in sales and profitability. On a standalone basis, sales and other income stood at ₹56.19 crore, while net profit after tax was ₹9.86 crore. On a consolidated basis, sales and other income stood at ₹59.27 crore, while net profit after tax was ₹10.39 crore. The company also recommended a final dividend of ₹4 per equity share for FY 2025-26.
The Managing Director, in his message to shareholders, stated that the company achieved back-to-back record-breaking turnover and profit since inception. He credited customers, frontline teams, internal divisions and dedicated applicators for the company’s performance. He also mentioned that the order flow remained healthy and that the company was exploring expansion through services and wholly owned subsidiaries.
The company has also shown an interest in expanding its business model through own-branded products related to its core business. While the launch timeline was delayed, the management noted that discussions with specialised manufacturers were progressing positively. The company believes its countrywide delivery network and listed entity framework give it a strong business advantage.
From a governance perspective, Siddhika Coatings Limited has an Audit Committee, Nomination and Remuneration Committee and Stakeholders’ Relationship Committee. The company has also established a vigil mechanism and whistle blower policy for directors and employees. It has stated that its internal financial control systems are adequate and that it follows applicable secretarial standards.
