Pidilite Annual Report 19-20 PDF

BUILDING
BONDS
ANNUAL REPORT
2019-20
IN NEW
“
In the past few months of lock-down,
we have focused our energy on finding
new ways of working based on our
core philosophy of building bonds.
Our partners, employees, and loyal
community of users including carpenters,
masons, plumbers are now connected
virtually and are working enthusiastically
to adopt to new ways of working.
We dedicate this Report to our

PIDILITE PARIVAAR that has
bonded together so strongly
“
in these trying times.
M B Parekh
Chairman
NEW STAYING CONNECTED
WAYS
ALWAYS
During times of physical
distancing, communication
is the key. Our partners are a
part of our `Parivaar’ and
enquiring after their health
and health of their families is
a natural extension of our
culture. Our teams have been
communicating on COVID
precautions and safety
measures that need to be
followed at shops and places
of work.
Adapting to new ways of working HELPING HANDS FOR

REASSURANCE
has been a challenging yet inspiring
journey, thanks to the collaborative Health and Safety are of
utmost importance in current
efforts of our partners. They times. We created guidelines
for our masons, carpenters
continue to rise above their roles and dealers to help them
operate safely. Providing
to meet the new normal and learn them with personal
from every hit and miss. As both protection kits and health
insurance has helped build
employees and stakeholders realise their confidence to restart
work safely.
the power of virtual collaboration,
everyone seems to be engaging
better, with every passing day.
Change is continuous. It teaches us
to be agile and flexible.
OF
‘‘I work as an assistant DIGITALLY UPSKILLING
plumber in Vizag.
My daily livelihood was lost OUR PARTNERS
because of the lockdown
and I was worried about As everyone adapts to new
supporting my family amid way of working, it’s also the
best time to upgrade our
this crisis. I did not expect
knowledge. We used digital
that any Company will come
platforms to empower our
to the plumber community’s users and partners with
rescue in this pandemic. training modules on basic
While no other company has and advanced waterproofing
interacted personally with us techniques, online product
during the lockdown, Pidilite demos and COVID-19 safety
officials have been in touch guidelines. This helped our
with us since the first week partners feel better equipped
of lockdown to remain to restart work.
apprised of our well-being.
Pidilite officials did not just
interact with us over call,
they also met us and
distributed essential grocery
items to help us make ends
meet. I am thankful to
Pidilite for thinking about
us during this crisis.”
Mr. Ravi Kumar

Plumber
Building Bonds…
from a Distance!
The Delhi A team successfully put up a unique Fevicol display
drive that garnered a lot of appreciation from all. Huge drums
of Fevicol were used to create a ‘social distancing’ wall at the
shop entrance, encouraging customers to maintain required
distance. The drive titled ‘Fevicol ka Border Mazboot Hai’
ensured strong brand equity and a big shout out of the
availability of stock everywhere.
CREATIVITY Learning from SCM
DOES Superheroes
Creativity is the best A motivated Supply Chain
antidote to crisis. To keep Management (SCM) team of
our consumers engaged superheroes faced their
while staying at home, challenges by tracking daily
we launched ‘Fevicreate updates of drivers/
Crafting Memories’ – a transporters and monitored
campaign in association their safety by distributing
with an online digital thermoguns and sanitisers.
community Momspresso.
This craft- centred campaign Our safety and hygiene
generated a reach of 12 million protocols at warehouses gave
consumers during the workers the confidence to
lockdown. We have engaged resume work. In the absence
with crafts teachers across of public transportation, the
the country by providing warehouse staff displayed
content for conducting high level of commitment by
online ‘summer camps.’ using their own bicycles/
bikes to reach work.
NOT TRULY INSPIRING : COVID

STOP CHAMPIONS & WARRIORS
So many of our Pidilite
employees, along with
their loved ones, walked the
extra mile to help those in
need during the lockdown.
From helping out contractor’s
families to distributing food
packets, they lead by example.
Our Champions & Warriors

received widespread
appreciation for their
proactive efforts.
EMBRACING Upskill and Upgrade
The Learning Management
System on HRKwik enabled
We moved towards a model of working that and delivered value-creating
has truly adapted to the social, economic and learning programmes for
employees during lockdown.
technological influences of the current need of The focus was on re-skilling
at the division level as well LEARNING AND
our times. These new ways of working have made as upskilling through new DISCOVERING
modules to develop additional
us adapt positively in how we innovate and skills. These modules reached
Various employee
communicate. We are embracing digital an average adoption
percentage of over 90% and
engagement programmes
were conducted online, to
transformation, not just to survive but to thrive effectiveness score of over
70%. This has depicted that
help employees stay active
and creative while at home.
and collaborate effectively, which has led to greater we are willing to learn during
Creative sessions on hobbies,
these VUCA (volatile,
ownership and thrust to better ourselves every day. uncertain, complex,
photography, food, movies,
kitchen gardening etc.
ambiguous) times.
helped employees discover
new passions. Holistic
well-being sessions on
nutrition and fitness as well
as mental health were helpful
for all. These online
workshops received excellent
response and participation
from far and wide.
I joined Pidilite in August 2019 as a TSI. In my 6-year

career across three organisations, Pidilite has been the
best in terms of culture and employee centricity.
Here everyone is treated with respect and is given a
stable and healthy environment to work. Seniors have
constantly motivated me to learn and achieve targets.
A NEW
Even in times of crisis like the COVID-19 pandemic,
Pidilite has gone ahead and released all our incentives
and salaries on time. Precautionary instructions and
constant health updates taken by seniors make
me feel like I am part of one caring family.
Vijaydurga Prasad
TSI
TABLE OF
CONTENTS
11
PIDILITE ANNUAL REPORT 2019-20

BOARD OF DIRECTORS
M B Parekh A N Parekh Uday Khanna

Executive Chairman Whole-Time Director Director
N K Parekh Debabrata Gupta Meera Shankar

Vice Chairman Whole-Time Director Director
(w.e.f 01.03.2020)
11 Company Information
Bharat Puri Vinod Dasari
12 Marketing Initiatives Managing Director B S Mehta Director
Director
22 Key Performance Indicators
A B Parekh Piyush Pandey
26 Management Discussion and Analysis Whole-Time Director Sanjeev Aga Director
Director
34 10 years' Financial Performance
36 Directors' Report
44 Social & Community Services Initiatives

CORPORATE OFFICE REGISTRAR & AUDITORS
Ramkrishna Mandir Road TRANSFER AGENT Deloitte Haskins & Sells LLP
Off Mathuradas Vasanji Road TSR Darashaw Consultants
58 Annexure to Directors' Report Andheri (E), Mumbai 400 059 Private Limited SOLICITORS &
6-10, Haji Moosa Patrawala ADVOCATES
86 Business Responsibility Report REGISTERED OFFICE Ind. Estate 20, Dr. E Moses Road Wadia Ghandy & Co
Regent Chambers Mahalaxmi, Mumbai 400 011
92 Auditor's Report 7th Floor, Jamnalal Bajaj Marg BANKERS
208, Nariman Point COMPANY SECRETARY Indian Overseas Bank
100 Standalone Financial Statements Mumbai 400 021 Puneet Bansal Corporation Bank
ICICI Bank
160 Corporate Governance Report CHIEF FINANCIAL OFFICER HDFC Bank
& Compliance Certificates Pradip Menon Citibank N A
(w.e.f 18.11.2019) Standard Chartered Bank PLC.
170 Information for Shareholders
INTERNAL AUDITORS
173 Consolidated Financial Statements Mahajan & Aibara
10
COMPANY
UNDER- marketing initiatives
STANDING
13

Multimedia
campaigns
Many new multimedia brand

campaigns were rolled out for
Fevicol, Fevikwik, Dr. Fixit,
Roff that won hearts of our
customers, won accolades
and had a positive impact on
business. Digital marketing
initiatives, in the form of social
media, digital videos and
performance marketing
campaigns, aimed to increase
brand engagement with
millennials, were further
scaled up with campaigns
for Fevicol, Dr. Fixit, Fevistik
and Roff. The end user A multimedia campaign
FEVICOL
engagement programmes, Brand Campaign
commemorating 60 years
of Fevicol was launched.
such as Fevicol Champions of the Year The creative showcased the
journey of a sofa created with
Club, Fevicryl ‘Humsafar’ and Fevicol that withstood the test
of time while transitioning
brand activations for ‘Fevicreate’ through multiple households
and generations. It was a
continued to reach a wider much-lauded creative reaching
over 10.5 crore views on

audience with participation in TV and over 11 crore views
on digital.
key industry events.
12
marketing initiatives 15

Multimedia
campaigns
The Dr. Fixit ‘Water creatures’
Dr. fixit campaign featuring ROFF Roff launched a multi-media
campaign in Karnataka with
Water creatures Mr. Amitabh Bachchan, Kyunki Roff mein hain the route of ‘Fix Tiles with
communicated the magar ki jakad Roff, not with cement’,
importance of right supported by the tagline,
waterproofing for homes. ‘Kyunki Roff mein hain
magar ki jakad.’
Fevikwik launched a new Pidilite Specialty Chemicals

FEVIKWIK multimedia campaign DR. FIXIT Bangladesh Private Limited
Phenko Nahi Jodo ‘Phenko Nahi Jodo’ that leak-free homes (PSCBL) launched a holistic
drove home the culture of campaign featuring
repairing instead of Bangladesh cricketer,
discarding, showcasing Mr. Mustafa Mortaza to
‘smart people’ who repair. improve adoption of
The campaign was launched Dr. Fixit Jodi (LW & URP)
with two television films for leak-free homes in
featuring iconic characters – new construction.
‘Kabaadiwalli’ and ‘Gappuji’.
14

Digital NEW PRODUCTS
Communication LAUNCH
& Initiatives
FEVICOL The year saw
Fevicol has an active online
us introducing
presence that continues to
leverage our signature brand
several new
humour to promote powerful products each
social media campaigns on
topical subjects throughout addressing
the year. This includes
spreading awareness on basic a distinct
protocols to follow during
the pandemic, takes on end-user need.
international affairs, and
so on.
Roff Powerflex is a high

strength tile adhesive for
Dr. Fixit website external cladding and large
size tiles and stones that was
To keep up with the ever introduced in the Indian
evolving technology market to a positive response.
platforms, Dr. Fixit relaunched
its website making it more
consumer friendly by having
elements like a chat bot,
GPS-enabled dealer and
contractor locators and an
expert sub-application to help
find the right product for the
various leakage problems – all
this within a couple of clicks.
FEVISTIK KIDS
A digital campaign was done
to promote ‘Fevistik Kids’, a
variant that provides precise
application of glue on paper
by way of being a coloured

adhesive. The message was
delivered through humorous New Fevicol Marine is an Sealants category saw the
videos, introducing the brand industry-first in India, offering launch of two variants of
idea to consumers. superior water resistance Neutral Silicon Sealants -
and Aqua Repel Technology Feviseal Neutral and Feviseal
in white adhesives. Weatherproof and Acrylic
The improved formulation Sealants – Feviseal
offers 40% more water Multipurpose and Feviseal
16 resistance than before. Doors and Windows.

NEW PRODUCTS AWARDS
LAUNCH
Awards are never our goal, but they encourage our
teams and partners to do great work that creates
business impact.
India Business Leader EFFIES DOD (Drivers of Digital)

Fevicryl Premium Fabric Chemifix Kids Glue, Awards (IBLA) Awards
Glue is a quality fabric an acquired white adhesive Sammie's (Social Samosa)
adhesive that dries 20% faster brand in Sri Lanka, was Awards
than regular ones through relaunched with a new look.
better bond strength. This year a variant, Chemifix Fevicol 60-year Fevikwik ‘Phenko Nahi Jodo’ Fevicryl and its digital agency
Kids Glue for students was also commemorative campaign campaign was recognised partner, Schbang won two
introduced and supported by a was conferred with the ‘Brand across platforms, bagging awards for the Best Digital
school connect programme, Campaign of the Year’ award 2 Silver and 1 Bronze medal in Campaign for Kalastar, a 360o
reaching out to 15,000+ at the CNBC-TV18 India EFFIES 2020. It also won the take to help enthusiasts
students. This helped Business Leader Awards Marketing Campaign of understand fabric colours
strengthen Pidilite’s Art (IBLA) 2020. It also won the the Year in ABP 2019 and better. The response was
Material and Stationary Marketing Campaign of the Primetime Gold Award overwhelming, with 16,278
range in Sri Lanka. Year at the ABP Awards and in the Best Television entries into the contest.
Corporate Image Gold at the Advertisement category.
Primetime Awards.
M Seal PV Seal Solvents Fevicol Elephant, the Fevicol Microprotect the new
unveiled the new age cyclic new product in the Epoxy product launched in Middle
polymer CoEx packs this year. Adhesive category in East, helps in maintaining
They offer first in market Sri Lanka, is popular in indoor air quality by
benefits, such as an furniture workshops, preventing anti-microbial
easy-to-open, pilfer-proof cap, by way of offering a fast activity on internal surfaces
3-years shelf life, among setting proposition of of HVAC ducts.
others. The solvents are ASTM 2 hours.
certified and low on VOC.
PIDILITE RECEIVING THE IBLA AWARD

18

BRAND Innovative on-ground activations
ACTIVATIONS are important for us to connect
with our consumers and end-users
to strengthen brand loyalty.
Fevicreate 1 lakh
Chandrayaans – Around
the same time that the
Chandrayaan-2 mission
was in progress, Fevicreate
conceived Chandrayaan-2
crafting sheets, gratuitously
circulated across schools.
The initiative helped over
1 lakh children make
their own version of
Chandrayaan-2.
Fevicryl Humsafar our first Fevicreate participated in

barcode-enabled loyalty Kala Ghoda Art Festival
programme for end-users, where a 10-feet horse was
Zardozi karigars and installed on Rampart Row.
middlemen was launched. This was the festival’s
It offers perks like gifts showstopper and was

through points redemptions, co-created by children and
chance to participate in citizens of Mumbai. They
designer tie-up initiatives, stuck embellishments on the
health camps and so on. installation during the nine
A total of 19,000 users days of the festival.
enrolled themselves in
the programme.
20
PERFORMING key performance indicators (standalone) 23

PROFIT AND LOSS METRICS BALANCE SHEET METRICS
Net Sales (` in crores) EBITDA (` in crores) Net Current Assets (` in crores) Reserves (` in crores)
6,290 | 4.0% 1,485 | 14.4% 1,847 | (5.8)% 4,414 | 6.7%

F Y 2019-20 6,290 FY2019-20 1,485 FY2019-20 1,847 FY2019-20 4,414
F Y 2018 -19 6,047 FY2018-19 1,298 FY2018-19 1,960 FY2018-19 4,136
F Y 2017-18 5,309 FY2017-18 1,294 FY2017-18 1,775 FY2017-18 3,513
F Y 2016 -17 4,837 FY2016-17 1,229 FY2016-17 1,880 FY2016-17 3,348
F Y 2015 -16 4,703 FY2015-16 1,121 FY2015-16 1,046 FY2015-16 2,599
Profit After Tax (` in crores) Earnings Per Share (EPS) (`) Return on Average Net Worth (%) Return on Average Capital Employed (%)
(excluding exceptional items)
1,161 | 18.5% 22.8 | 18.1% 26.8 | 156 bps 34.2 | (58 bps)
F Y201 9 - 20 1,161 FY2019-20 22.8 FY2019-20 26.8 FY2019-20 34.2
F Y201 8- 1 9 979 FY2018-19 19.3 FY2018-19 25.3 FY2018-19 34.7
F Y201 7- 1 8 955 FY2017-18 18.8 FY2017-18 27.4 FY2017-18 37.4
F Y201 6 - 1 7 868 FY2016-17 16.9 FY2016-17 28.7 FY2016-17 41.1
F Y201 5 - 1 6 774 FY2015-16 15.1 FY2015-16 31.0 FY2015-16 44.0
Book Value Per Share (`) Dividend Per Share (DPS) (`)
Distribution of Material Cost 46.4%
87.9 | 6.7% 7.00* | 7.7% Revenue 2019-20 Operating Cost 18.5%
F Y201 9 - 20 87.9 FY2019-20 7.00*
Employee Cost 11.6%
F Y201 8- 1 9 82.4 FY2018-19 6.50
F Y201 7- 1 8 70.2 FY2017-18 6.00
Interest & Foreign Exchange
F Y201 6 - 1 7 66.3 FY2016-17 4.75 Fluctuation Expense 0.2%
F Y201 5 - 1 6 51.7 FY2015-16 4.15 Depreciation 2.0%
*interim dividend considered as final dividend for FY 2019-20 Current Tax 5.8%
Deferred Tax (0.5%)
Dividend 13.1%
Retained Earning 2.9%
Y-O-Y Growth/Degrowth
22
key performance indicators (standalone) 25

CURRENT RATIO 2.6 Debt Equity Ratio Value Addition to Business
3,026
19-20 through Reserves
1,179
3.0
0 51
2,929
18-19 19-20 4,465 19-20 4,414
970
0 51
3.0 18-19 4,136
18-19 4,187
2,664
17-18 51
0
889 17-18 3,513
17-18 3,564
3.4
2,666 0 51
16-17 16-17 3,348
16-17 3,399
786
2.5 0 51
1,763 15-16 1 2,650 15-16 2,599
15-16
717
Current Assets (` in crores) Total Debt (` in crores) Share Capital (` in crores)
Current Liabilities (` in crores) Net Worth (` in crores) (Equity + Reserves) Reserves (` in crores)
Current Ratio Debt Equity Ratio
PBIT & Interest Cover PBT & PBT as % to Net Sales Growth in Market 31-3-20
1.16 2.27
Capitalisation of Company
205.1 23.8
and BSE sensex since 31-3-19
1.53 2.08
19-20 1,501 19-20 1,496 31st March 2016

1.30 1.54
193.8 22.8 31-3-18
18-19 1,384 18-19 1,376
1.17 1.18
220.7 25.1 31-3-17
17-18 1,337 17-18 1,331
1 1
219.1 25.6 31-3-16
16-17 1,245 16-17 1,239
188.8 23.3 Base Value : 31st March 2016 =1

15-16 1,102 15-16 1,096 Market Capitalisation of Company (Times)
BSE Sensex (Times)

PBIT* (` in crores) PBT* (` in crores)
Interest Cover (Times) PBT as % to Net Sales
24 * PBIT excludes exceptional items * PBT excludes exceptional items

management discussion and analysis 27

FINANCIAL Consolidated Financials On a constant currency basis,
the overseas subsidiaries
FINANCIAL Standalone Financials For the year, sales volume and
mix grew by
REVIEW Consolidated Net Sales reported sales growth of REVIEW As a result of the nation-wide
grew by
9.6%
lockdown declared in March
2020, the standalone net sales 1.7%
3.1% EBITDA grew by
in the last ten days of the
quarter, and of the year, and EBITDA, excluding
non-operating income
were lower than the same
“EBITDA” (earnings before period last year by around improved by
Interest, Taxes, Depreciation,
Exceptional items and foreign 107.9% ` 150 crores. This is equivalent
to around 11 % of Q4 net
14.4%
exchange differences) before sales last year.
non-operating income, due to higher sales and better
increased by gross margin due to softer
Lower sales in the last ten
input cost.
days of the quarter and the
14.8%
Profit Before Tax (PBT) and
year resulted in last quarter’s exceptional items grew by
standalone net sales growth
Domestic subsidiaries sales
declined by
reducing from around 9.6%
as on 21 st March 2020 to
(4.3%)* as on quarter end.
8.7%
Profit Before Tax (PBT) grew by
8.2%
The year’s standalone net sales Excluding exceptional items+
9.5%
growth reduced from around in current year and income
7.1% as on 21 st March 2020 to from inter-company transfer of
EBITDA de-grew by intangible assets and dividend
4.0%* as on year end.
PBT - excluding exceptional income from subsidiaries, in
The consequent impact on
items* grew by
8.3% standalone EBITDA growth
last year, PBT grew by
12.7%
is estimated at a reduction
12.2% on account of lower sales and
hence higher absorption of
of 29.0% for last quarter and
6.0% for the year.
fixed cost.
* Audited numbers, all other
Profit After Tax (PAT) grew by numbers are not reviewed/ Profit After Tax (PAT) grew by
audited by auditors.
20.8% 12.5%
PAT - excluding exceptional Excluding exceptional items+
items* grew by in current year and income
from inter-company transfer of
24.4% intangible assets and dividend

income from subsidiaries and
effect of tax thereon, in last
year, PAT grew by
* Exceptional item represents

impairment loss on plant and 23.3%
machinery at Dahej Elastomer
Project amounting to ` 55 crores in

current period and impairment in
value of investments amounting to + Exceptional item represents
` 18 crores in previous period. impairment loss on plant
and machinery at Dahej
Elastomer Project amounting
to ` 55 crores and impairment
in value of investments of
a subsidiary amounting to
` 4 crores.
26

Performance by The Company operates
under two major business
Resins, Construction Chemicals
(Projects), Organic Pigments,
BUSINESS TO BUSINESS Business to Business
segment contributed
Industrial Resins, Construction
Chemicals (Projects) etc.
Industry Segment segments i.e. Branded Pigment Preparations, etc. and contributed
(Standalone) Consumer & Bazaar and
Business to Business.
caters to various industries like
packaging, joineries, textiles, 18.7% 6.4%
paints, printing inks, paper,
Products, such as Adhesives, leather, etc. of the sales of the Company
Sealants, Art & Craft Materials and grew by of the sales of the Company
and Others, Construction and and grew by
4.9%
In both the above business
Paint Chemicals are covered
0.2%
segments, there are a few
under Branded Consumer & medium to large companies
Bazaar segment. These with national presence and a with volume and mix
products are widely used by large number of small growing by
carpenters, painters, plumbers, companies which are active
3.9%
mechanics, households, regionally. Multinational
students, offices etc. companies are also present Pigments and Preparations
in many of the product contributed
Business to Business segment categories in which the
6.2%
covers products, such as Company operates.
Industrial Adhesives, Industrial
Industrial Adhesives includes
adhesives used in packaging, of the sales of the Company
footwear, cigarette, and grew by
automotive industry and
CONSUMER & BAZAAR Branded Consumer & Bazaar Construction and Paint
joinery. This category
contributed 15.6%
6.1%
segment contributed Chemicals contributed
79.9% 19.2% of sales of the Company and

of the sales of the Company of the sales of the Company grew by
0.5%
and grew by and grew by
5.4% 12.1%
with volume and mix
growing by
1.9% Art & Craft Materials etc.

contributed OTHERS The ‘Others’ segment largely
comprises of manufacture and
8.1% sale of Speciality Acetates, raw

materials etc.
Adhesives & Sealants category of the sales of the Company

includes adhesives, sealants and declined by
and tapes. This category

contributed
1.0%
52.6%
of the sales of the Company
and grew by
28 4.1%

BUSINESS SEGMENT/ HUMAN RESOURCES The year under review
witnessed significant progress
The Human Resource
Management System Workline
PRODUCT CATEGORY % in people practices, policies has been strengthened with
and processes, enabling the the implementation of multiple
Company on its journey of paperless processes across
6.1% ‘Growing to Greatness’. employee, self service areas of
Industrial communication and relocation
Adhesives The Company’s ‘Happy and reimbursements, manage
Healthy’ (HAH) movement personal compensation and
6.2% saw unique participation tax and personal profile
Pigment & levels of 65%, a rise of more updates. Additionally, to help
Preparation than 20% over the last year. digitise our hiring process, the
New categories were integration of the Application
6.4% introduced to engage Tracking System (ATS) has
Industrial Resins & employees more inclined been a key step in garnering
Construction Chemicals towards mental or indoor pre- and post-hiring
(Project) etc. activities like carrom, quiz intelligence.
8.1% 1.4% and badminton.
Art & Craft Safety of our employees is of
Others
Materials etc. To further strengthen the paramount importance and
Learning and Development this was reflected both during
programmes, PACE, the the onset and living through
signature programme for R&D the COVID-19 pandemic.
managers was added to the The Company has reset the
existing bouquet of signature ways of working keeping a
programmes for Sales and long-term view in mind and is
Marketing. Capstone, moving swiftly to a digitally
our programme for middle enabled workforce which has
19.2% management saw its second learning, safety and agility as
Construction batch successfully complete the cornerstones of recasting
& Paint the course. the way we work.
Chemicals
To strengthen the assessment The total number of
process, the Company employees as on 31 st March
introduced a multi-rater 2020 is 6,064.
stakeholder feedback process
with the intention to bring
in greater transparency
52.6% and accountability in
Adhesives our managers.
& Sealants
79.9%
Consumer &
Bazaar Products
segment
18.7%
Business to Business
Products segment
1.4%
30 Others
management discussion and analysis economic value added (EVA) 33

OUTLOOK Current Year Outlook sales and market share in
Bangladesh and Sri Lanka.
COMPUTATION OF EVA
During the first half of The US subsidiary plans to
FY 2020-21, economic activity maintain its focus on Retail
EVA = Net Operating Profit After Tax (NOPAT) - Weighted average cost of capital employed.
may remain subdued due to a and E-Commerce. The Brazil
number of factors, such as subsidiary is taking initiatives
social distancing, subdued for continued growth in sales NOPAT = Net profit after tax + post tax interest cost at actual.
demand and labour shortage. and margins. The business
Recovery in economic activity environment in these countries
is expected to begin in second remain subdued as they Weighted average cost of = (Cost of equity x average shareholder funds) + (cost of debt x average debt).
half of FY 2020-21 depending all face the ongoing impact capital employed
on how effectively the country of the pandemic and
is able to contain the virus. consequent lockdown. Cost of equity = Risk-free return equivalent to yield on long term Government of India (GOI) securities
Overall there remains (taken @ 7.54%) + market risk premium (assumed @ 6.01%) x beta variant for the Company
(taken at 0.75), where the beta is a relative measure of risk associated with
significant uncertainty about Outlook on Opportunities,
the Company’s shares as against the stock market as a whole.
the duration of the pandemic Threats, Risks and Concerns
and the consequent downside
Cost of debt = Effective interest applicable to Pidilite based on an appropriate mix of short,
risks to domestic growth. The Indian economy provides medium and long term debt, net of taxes.
a large opportunity to the
Continued slowdown in Company to market its
the construction industry differentiated products.
and economic growth can Item 2015-16 2016-17 2017-18 2018-19 2019-20
negatively impact sales Slower growth of the Indian
growth for current year. economy and stress in sectors, 1. Risk Free Return on Long Term GOI Securities 7.5% 6.5% 7.2% 7.3% 7.5%
such as construction could
While major subsidiaries in impact the performance of 2. Cost of Equity 12.9% 9.2% 11.4% 13.1% 12.0%
India are taking initiatives to the Company.
improve margins and achieve 3. Cost of Debt (Post Tax) 0.0% 0.0% 0.0% 0.0% 0.0%
consistent sales growth in Overseas subsidiaries, by 4. Effective Weighted Average Cost of Capital 12.8% 9.2% 11.4% 13.1% 12.0%
their respective businesses, virtue of their relatively
the impact of the economic smaller size, remain vulnerable Economic Value Added (` in crores)
growth environment does to the political and economic
pose a risk to these plans. uncertainties of their 5. Average Debt 3 1 0 0 0
respective countries.
The Company’s major 6. Average Equity (Shareholder Funds) 2,500 3,025 3,482 3,875 4,326
international subsidiaries are COVID-19 related slowdown
in Bangladesh, Sri Lanka, 7. Average Capital Employed (Debt + Equity) 2,503 3,026 3,482 3,875 4,326
may impact the performance
USA, Brazil, Thailand, Egypt of the Company and its 8. Profit After Tax (as per P&L account) 774 #$ 868 #$ 955 $ 979 $ 1161 #$
and Dubai. Various initiatives subsidiaries.
are being taken to increase 9. Interest (as per P&L account, net of Income Tax) 4 4 4 5 10
10. Net Operating Profit After Tax (NOPAT) 778 872 959 984 1171
MISCELLANEOUS OTHER MATTERS CAUTIONARY STATEMENT 11. Weighted Average Cost of Capital (4x7) 322 278 397 509 521
12. Economic Value Added (10-11) 456 594 563 475 650
The Company’s Net Worth The following matters are Statements in this
(Equity capital + Reserves) has elaborated in the Directors’ Management Discussion and 13. EVA as a % of Average Capital Employed (12 ÷ 7) 18.2% 19.6% 16.2% 12.3% 15.0%
grown from ` 2,650 crores as Report Analysis Report describing

on 31 st March 2016 to ` 4,465 the Company’s objectives, # Profit After Tax excludes exceptional items.
crores as on 31 st March 2020, . Risks and concerns projections, estimates and $ Profit is after tax but before Other Comprehensive Income.
giving a Compounded Annual expectations may be ‘forward
Growth Rate (CAGR) of 13.93%. . Internal control systems looking statements’ within the
and their adequacy meaning of applicable laws
The market capitalisation of the and regulations. Actual results
Company on 31 st March 2020 might differ.
was ` 68,935 crores and has
grown at a CAGR of 30.36 %
32 since the IPO in 1993.
35

(` in crores) (` in crores)
I GAAP IND AS I GAAP IND AS
Highlights 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 CAGR % Highlights 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Operating Results Funds Flow
Sales and Other Income 2,530 3,017 3,615 4,169 4,724 5,134 5,409 5,627 6,285*** 6,484 11.0% Sources
Manufacturing & Other Expenses 2,036 2,483 2,939 3,448 3,918 3,942 4,070 4,197 4,796 4,847 10.1% Internal Generation 373 400 < 511 < 546 638 886 967 1,066 1,091 1,259
Operating Profit 494 534 676 721 806 1,192 1,339 1,430 1,490 1,637 14.2% Increase in Capital & Reserve on - 15 50 - - - - - - -
conversion of FCCB
Interest (Net) 27 21 8 10 10 6 6 6 7 13 (7.4%)
Increase in Equity Share Capital - - - - - -~ -~ -~ -~ -~
Depreciation 44 48 53 69 108 88 90 91 100 126 12.3%
Increase in Loans - - - 8 - - - - - -
Profit from Ordinary Activities 423 465 615 642 688 1,098 1,243 1,333 1,383 1,498 15.1%
Decrease in Investment-Others 99 73 - 35 - - - 283 - 102
Exceptional Item 25 13 (6) 6 18 27 94 - - 59 10.1%
Decrease in Working Capital - - 141 - 23 *** 329 - - - -
Foreign Exchange Difference -
1 8 1 5 2 1 4 2 6 2 9.3%
Expense/(Income) Total 472 488 702 589 661 *** 1,215 967 1,349 1,091 1,361
Profit-Before Tax 397 444 620 631 668 1,070 1,145 1,331 1,376 1,437 15.4% Applications
Current Tax 94 105 156 160 156 299 363 403 438 369 16.4%
Repayment of Loans 135 23 204 60 2 5 1 - - -
Deferred Tax (1) 4 3 2 11 24 8 19 11 (33) 57.2%
Capital Expenditure (Net) > 124 141 128 169 353 134 88 125 159 393
Profit-After Tax for the year 304 335 461 469 501 747 774 909 927 1102 15.4%
Investments in
13 19 26 55 26 14 10 34 26 19
- Overseas Subsidiaries
Add: Prior Year's Tax Provision
- - - - - - - 46 53 - -
written back - Domestic Subsidiaries - - - 7 -~ 68 80 117 35 127
Profit-After Tax 304 335 461 469 501 747 $ 774 $ 955$ 979$ 1,102$ 15.4%
- Others - - 188 - 101 *** 590 695 - 255 -
Dividend on Equity Shares 103 * 112 * 156 * 162 * 179 * 404 **** 31 **** 293**** 364**** 827**** 26.1%
Buyback of Equity Shares - - - - - - - 500 - -
Retained Earning 201 223 305 307 322 343 743 662 615 275 3.5%
Dividend 103 * 112 * 156 * 162 * 179 * 404 **** 31 **** 293 **** 364 **** 827 ****
Financial Position
Increase in Working Capital 97 193 - 136 - - 62 280 252 (5)
Capital-Equity 51 51 51 51 51 51 51 51 51 51 0.0%
Total 472 488 702 589 661 *** 1,215 967 1,349 1,091 1,361
Reserve (Less Revaluation 1,088 1,327 1,682 1,988 2,298 2,599 3,348 3,513 4,136 4,414 16.8%
Reserve & Misc. Expenditure) Ratios
Return on Average Net Worth % (RONW) 31.7 27.6 29.3 25.2 23.7 31.0 28.7 27.4 25.3 26.8 @
Net Worth 1,139 1,378 1,733 2,039 2,349 2,650 3,399 3,564 4,187 4,465 16.4%
(PAT divided by Average Net Worth) ##
Borrowings 287 264 60 8 6 1 - - - - - Return on Average Capital Employed % (ROCE) 32.3 31.2 36.2 33.7 31.6 44.0 41.1 37.4 34.7 34.2
(PBIT divided by Average
Deferred Tax Liability (Net) 41 45 48 51 55 75 84 103 113 76 7.1% Funds Employed**)##
Funds Employed 1,467 1,687 1,841 2,098 2,410 2,726 3,483 3,667 4,300 4,541 13.4% Long-term Debt/Cash Flow 0.8 0.6 0.1 - - - - - - -
Fixed Assets ** Gross Gearing % 20.1 16.1 3.4 0.4 0.2 - - - - -

(Debt as a percentage of Debt plus Equity)
Gross Block 1,205 1,343 1,469 1,637 2,005 1,775 1,856 1,975 2,110 2,538 8.6%
Current Ratio 1.6 1.8 1.6 1.8 1.7 2.5 3.4 3.0 3.0 2.6
Depreciation 431 476 527 594 716 707 790 871 930 1041 10.3% Assets Turnover (times) 1.7 1.8 1.9 2.0 1.9 1.8 1.5 1.5 1.4 1.4
(Gross Sales divided by Total Assets)
Net Block 774 867 942 1,043 1,288 1,068 1,066 1,104 1,180 1,497 7.6%
Debtors Turnover 9.5 9.7 10.2 10.0 9.6 9.5 9.1 8.4 8.3 8.0
Investments in (Gross Sales divided by Debtors)
- Overseas Subsidiaries 233 # 239 # 260 # 315 # 341 # 355 # 270 # 303# 330# 327# 3.9%
Inventory Turnover
4.1 4.2 4.3 4.5 4.7 4.4 4.3 4.3 4.5 4.0
- Others 167 94 287 259 360 *** 748 1,523 1,483 1,860 1,496 27.6% (Cost of Goods Sold divided by Inventories)
Net Current Assets 293 487 352 481 421 *** 555 624 777 930 1,220 17.2% Operating Profit Margin (%) ## 19.9 19.2 20.5 18.7 18.4 25.3 27.7 26.9 24.6 26.0
Net Profit Margin (%) ## 16.9 16.3 18.5 16.5 15.7 23.3 25.6 25.1 22.8 23.8
Total Assets 1,467 # 1,687 1,841 2,098 2,410 2,726 3,483 3,667 4,300 4,541 13.4%
The Company transitioned into Ind AS from 1st April 2015 ~ Less than ` 1 crore
The Company transitioned into Ind AS from 1st April 2015 ~ Less than ` 1 crore > Includes Cost of Brands, Patents Trademarks and Businesses Acquired *** Previous years’ figures regrouped
* Includes Tax on Dividend *** Previous years’ figures regrouped * Includes Tax on Dividend. **** Paid dividend (including tax) as per IND AS
** Including Capital Work-In-Progress and excluding Revalued Assets **** Paid dividend (including tax) as per IND AS ** Excluding Deferred Tax Liability (Net)
and Depreciation thereon @ As compared to FY 2018-19, FY 2019-20 RONW is higher by
$ Profit is after tax but before Other Comprehensive Income < Includes security premium received on FCCB conversion by 6.2% mainly due to 11.6% growth in average net worth
34 # After deducting provision for diminution. against 18.5% growth in PAT
## PAT, PBT and PBIT are excluding exceptional items
directors’ report 37

To PBT, PAT & 8.7
1,496
The Members Growth (YOY) 19-20
1,161
Your Directors take pleasure in presenting the Fifty First Annual Report 18.5
together with Audited Financial Statements for the year ended 3.4
31st March 2020. 1,376
18-19
979
Financial Results (Standalone) 2.5
7.4
1,331
(` in crores ) 17-18
955
2019-20 2018-19
10.0 13.0
Sales 6,290.43 6,047.40 1,239
16-17
Operating Profit 1,637.28 1,489.74 868
12.2
Finance Costs (13.40) (7.14)
59.8
1,096
Depreciation, Amortisation and 15-16
(125.79) (99.83)
Impairment Expense 774
Net Foreign Exchange Loss (1.86) (6.32) 49.0
Profit Before Exceptional Items and Tax 1,496.23 1,376.45 Excludes exceptional items
Exceptional Items 59.28 - PBT (` in crores) PBT (Growth %)

Profit Before Tax 1,436.95 1,376.45 PAT (` in crores) PAT (Growth %)
Current Year’s Tax (368.65) (385.56)
Profit After Current Year’s Tax 1,068.30 990.89
Deferred Tax 33.32 (11.45)
Profit After Tax 1,101.62 979.44
Profit Brought Forward 2,779.09 2,166.95

Equity Dividend Payout & % 36.9
7.00 2.7 19-20 429
of STANDALONE Net Profit
Other Comprehensive Income included
Financial Performance
in retained earnings (Net of tax)
(11.20) (2.98) (excluding exceptional items) 40.6
Comments on Financial 6.50 2.5 18-19 398
Performance are included in Profit available for appropriation 3,869.50 3,143.41
Management Discussion and 38.1
Analysis Report.
Appropriations 6.00 2.6 17-18 364
Dividend Dividend paid (330.18) * (304.69) # 33.8

4.75 3.0 16-17 293
Your Directors recommend that the Interim Dividend paid (355.61) -
interim dividend of ` 7/- per equity 33.1
share of ` 1/- each amounting to Tax on Dividend (140.97) (59.63) #
4.15 3.0 15-16 256
` 355.61 crores, which was declared
Total (826.76) (364.32) #

and paid during the Financial Year,
be considered as the final dividend Closing balance of Retained Earnings 3,042.74 2,779.09 Dividend per Share (`)
out of the current year’s profit,
on equity capital of ` 50.81 crores Dividend Cover (Times) Payout
* Pertaining to dividend for FY 2018-19
(previous year ` 6.50 per equity
Dividend Payout including tax on dividend
share of ` 1/- each aggregating to # Pertaining to dividend for FY 2017-18
(net of foreign tax credit) (` in crores)
` 330.18 crores on equity capital
of ` 50.80 crores). The dividend Dividend % To Net Profit
payout amount has grown at a The dividend payout is in accordance with the Dividend Distribution
CAGR of 13.8% during the last Policy which is given as an annexure and the same is also available on the
36 five years. website of the Company www.pidilite.com.
39

Transfer to Reserves on 13th January 2020 to carry on the business Performance of Major Domestic and Overseas Subsidiaries
(` in crores)
of manufacturing, processing and distribution
The Company does not propose to transfer amounts of technical mortars and other materials used in Name of Subsidiary Sales Sales % Growth EBITDA EBITDA % Growth
to the general reserve. construction. The Company holds 50% of the 2019-20 2018-19 2019-20 2018-19
Term Finance paid up share capital and has management

control of PGPML. Nina Percept Pvt Ltd 267.76 304.80 (12.2%) 11.50 34.08 (66.3%)
The Company has no outstanding term loans
(previous year NIL). c. Nina Percept Private Limited (NPPL), subsidiary ICA Pidilite Pvt Ltd 185.83 168.33 10.4% 24.13 1.56 1450.1%
of the Company along with Pidilite Speciality
Capital Expenditure Chemicals Pvt Ltd (PSCB), a step down subsidiary CIPY Poly Urethanes Pvt Ltd 121.38 155.43 (21.9%) 15.38 20.93 (26.5%)
The total capital expenditure during the year was of the Company, has incorporated a company on
29th January 2020, in Bangladesh namely “Nina Pidilite Speciality Chemicals 119.19 99.14 20.2% 18.38 17.14 7.2%
` 369.03 crores (previous year ` 186.23 crores)
Percept (Bangladesh) Pvt Ltd.” to carry on the Bangladesh Pvt Ltd
primarily spent on fixed assets for various
manufacturing units, offices, laboratories, warehouses business of roofing and waterproofing services in
Pidilite Lanka (Pvt) Ltd 41.46 35.04 18.3% 2.91 (0.60) 584.7%
and on information technology. Bangladesh. NPPL holds 99% of the paid up share
capital of Nina Percept (Bangladesh) Pvt. Ltd and
Deposits Pidilite USA Inc 113.72 104.97 8.3% (0.42) 1.36 (131.3%)
the balance 1% is held by PSCB.
The Company has not accepted any deposits covered d. The Company alongwith Chetana Expotential Pulvitec do Brasil Industria e 88.12 81.80 7.7% 1.98 0.32 511.0%
under Chapter V of the Companies Act, 2013 during Comercio de Colas e Adesivos Ltda
Technologies Pvt Ltd, Bangalore has incorporated
the financial year 2019-20 (previous year NIL). a joint venture company in the name of “Pidilite Pidilite Industries Egypt SAE 35.03 31.64 10.7% (0.07) (1.92) 96.1%
C-Techos Walling Limited” (PCWL) on 5th March includes PIL Trading (Egypt)
Subsidiaries
2020, to carry on the business of construction Company
Investment in Subsidiaries of building works or any other structural or Pidilite Bamco Ltd includes Bamco 60.69 63.07 (3.8%) 5.14 4.02 27.9%
architectural work of any kind using C-Techos wall Supply and Services Ltd (Thailand)
During the year, investment of ` 146.18 crores
technology, manufacturing of ACC panels and
(previous year ` 61.04 crores) was made in
other ancillary products. The Company holds 60% Pidilite MEA Chemicals LLC (UAE) 109.55 100.78 8.7% (4.14) (7.55) 45.2%
subsidiaries. Of this, ` 127.08 crores was invested in
of the paid up share capital and has management Overseas subsidiaries figures are at constant currency.
domestic subsidiaries and ` 19.10 crores in overseas
control of PCWL.
subsidiaries.
e. The Company has, for operational convenience Nina Percept saw a decline in sales and decrease in decline in sales due to market conditions. EBITDA in
The investments in domestic subsidiaries were in profitability due to a slowdown in the real estate sector. these subsidiaries improved due to benefit of softer
and synergies, entered into a business transfer
Madhumala Ventures Pvt. Ltd. (formerly known input cost and controlled spends.
agreement for acquiring the business of wholly ICA Pidilite reported higher sales and improved
as Madhumala Traders Pvt. Ltd.) amounting to
owned entity, M/s. Nitin Enterprise (a partnership profitability on account of scaled up local The subsidiary in UAE reported reduction in EBITDA
` 126.47 crores and in newly incorporated subsidiaries
firm having two partners, both of which are manufacturing. losses due to higher sales, margin improvement and
namely Pidilite Litokol Pvt Ltd (` 0.60 crores) and
wholly owned subsidiaries of the Company) on cost saving initiatives.
Pidilite Grupo Puma Manufacturing Ltd (` 0.01 crores).
a slump sale basis for a cash consideration of an Cipy witnessed lower sales and decline in profitability
The investments in overseas subsidiaries were amount not exceeding ` 18.50 crores subject to on account of a slowdown in the Auto and Consolidated Financial Statements
in Pidilite International Pte Ltd., Singapore necessary approvals. The acquisition process is Engineering segment.
In accordance with the provisions of the Companies
(` 18.03 crores), Pidilite Chemical PLC, Ethiopia likely to be completed during the financial
The subsidiary in Bangladesh reported good sales Act, 2013 (hereinafter referred to as ‘the Act’),
(` 0.75 Crores) and Pidilite Industries Egypt SAE year 2020-21.
growth with healthy profitability. The second Regulation 33 of the Securities and Exchange
(` 0.32 crores). Board of India (Listing Obligations and Disclosure
f. Madhumala Ventures Pvt Ltd (formerly known manufacturing plant at Bhaluka was commissioned
During the year as Madhumala Traders Pvt Ltd), a wholly owned during the year. Requirements) Regulations, 2015 (hereinafter referred
subsidiary of the Company, has made three to as ’Listing Regulations’) and applicable Accounting
a. The Company along with Litokol S.p.A, Italy strategic investments in relevant start-ups in the Pidilite Lanka continued to grow in the current year, Standards, the Audited Consolidated Financial
has incorporated a joint venture subsidiary in domain of home décor, furnishings, painting and and reported positive EBITDA due to lower material Statements of the Company for the financial year
the name of “Pidilite Litokol Private Limited” waterproofing aggregating to ` 122.48 crores. cost and benefit of local manufacturing. 2019-20, together with the Auditors’ Report, form
(PLPL) on 7th October 2019 to carry on the With these investments, the Company intends to part of this Annual Report. A statement containing
Pidilite USA sales grew due to higher sales of Tempera,
business of chemicals epoxy grouts, chemical the salient features of the Company’s subsidiaries,
support and collaborate with these start ups for Pencil and Acrylic colours, however it reported
based products etc. The Company holds 60% of mutual benefits. associate and joint venture company in the prescribed
a negative EBITDA due to one off tax expenses
the paid up share capital and has management Form AOC- 1, are set out in Note No. 59 to the
g. Pursuant to a share purchase agreement executed pertaining to the past period.
control of PLPL. Consolidated Financial Statements.
with Tenax S.p.A, Italy, the Company acquired Pulvitec do Brasil reported moderate sales growth and
b. The Company alongwith Corporacion Empresarial 70% of the share capital of Tenax India Stone The Consolidated Financial Statements have been
higher EBITDA on account of margin improvement
Grupo Puma S.L., Spain has incorporated a Products Pvt. Ltd. for a cash consideration of prepared on the basis of audited financial statements
and cost saving initiatives.
joint venture subsidiary in the name of “Pidilite approx. ` 80 crores. The acquisiton process was of the Company, its subsidiaries, associate company
Grupo Puma Manufacturing Limited” (PGPML) completed on 28th May 2020. The subsidiaries in Egypt reported moderate sales and joint venture, as approved by their respective
growth. The subsidiaries in Thailand saw marginal Board of Directors except Pulvitec do Brasil Industria e
38
41

Comercio de Colas e Adesivos Ltda which has to the Directors is as per the terms laid out in the Number of Meetings of Board of Directors Policy) Rules, 2014 is attached as Annexure 1 to this
been approved by the local administrator and Plus said policy. Report. The details of CSR Initiatives forms part of
Six meetings of the Board of Directors of the Company
Call Technical Services LLC, Dubai for which the Social & Community Services Initiatives section of
Directors’ Responsibility Statement were held during the year. For further details, please
financial statements has been approved by the this Annual Report. CSR Policy can be accessed on
refer to the Report on Corporate Governance, which
management. There has been no transaction in Your Directors confirm that: website of the Company www.pidilite.com
forms a part of this Annual Report.
Pidilite C-Techos Private Limited and Pidilite Grupo
• in the preparation of the annual accounts, the Vigil Mechanism / Whistle Blower Policy
Puma Private Limited from the respective dates of Statement of Declaration on Independence given by
applicable accounting standards have been
their incorporation till 31st March 2020. Independent Directors The Company has established a Vigil Mechanism and
followed along with proper explanation relating
Whistle Blower Policy for its Directors and employees.
The accounts of the subsidiaries are also uploaded on to material departures; All the Independent Directors of the Company have The said policy has been communicated to the
the website of the Company, www.pidilite.com. • the directors have selected such accounting given declarations that: Directors and employees of the Company and is also
policies and applied them consistently and made posted on the website of the Company. For further
Directors and Key Managerial Personnel a. they meet the criteria of independence as laid
judgments and estimates that are reasonable and details, please refer to the Report on Corporate
down under the Act and the Listing Regulations
The Board of Directors, on the recommendation prudent so as to give a true and fair view of the Governance, which forms a part of this Annual Report.
and
of Nomination and Remuneration Committee, has state of affairs of the Company at the end of the
recommended to the Members (a) the re-appointment financial year ended 31st March 2020 and of the b. they have registered their names in the Policy relating to Prevention of Sexual Harassment
of Shri Bharat Puri as the Managing Director of the profit of the Company for that period; Independent Directors’ Databank. The Company has formulated a Prevention of Sexual
Company for a further period of 5 years with effect • the directors have taken proper and sufficient Harassment Policy and has formed Internal Complaints
from 10th April 2020 (b) the re-appointment of Corporate Governance
care for the maintenance of adequate accounting Committees, as per statutory requirements. For
Shri A N Parekh as the Whole-time Director of the records in accordance with the provisions of the The Company is committed to good corporate further details, please refer to the Report on Corporate
Company for a further period of 5 years with effect Companies Act, 2013 for safeguarding the assets governance practices. The Report on Corporate Governance, which forms a part of this Annual Report.
from 1st July 2020 and (c) the re-appointment of of the Company and for preventing and detecting Governance, as stipulated under Listing Regulations,
Shri Sanjeev Aga as an Independent Director of the Statutory Auditors
fraud and other irregularities; forms an integral part of this Annual Report. The
Company for a second consecutive term of 5 years, requiste certificate from M/s M. M. Sheth & Co.,
• the directors have prepared the annual accounts In accordance with the provisions of the Act,
commencing from the conclusion of the 51stAGM. Practising Company Secretaries, is attached to the
on a going concern basis; M/s Deloitte Haskins & Sells LLP, Chartered
Shri Sabyaschi Patnaik, Whole-time Director, Report on Corporate Governance. Accountants (Firm Registration No 117366W/W-
• the Board has laid down internal financial controls
designated as Director-Operations of the Company, 100018) have been appointed as the Statutory
to be followed by the Company and that such Management Discussion and Analysis Report
resigned from the end of business hours of Auditors of the Company, for a period of five years
internal financial controls are adequate and are
29th February 2020. The Directors place on record The Management Discussion and Analysis Report for i.e. up to the conclusion of 54th AGM to be held for
operating effectively; and
their sincere appreciation for the valuable services the year under review, as stipulated under the Listing the adoption of accounts for the year ending
• the directors have devised proper systems Regulations, is presented in a section forming part of 31st March 2023. Auditors have confirmed that they
rendered by him during his tenure as the Whole-time
to ensure compliance with the provisions of this Annual Report. For the sake of brevity the items are not disqualified from continuing as Auditors of
Director of the Company.
all applicable laws and that such systems are covered in Board’s Report are not repeated in the the Company.
Shri Debabrata Gupta was appointed as an Additional adequate and operating effectively. Management Discussion and Analysis Report.
Director of the Company by the Board on the There is no qualification or adverse remark in Auditors’
Annual Evaluation by the Board of its own Committees of the Board Report. There is no incident of fraud requiring
recommendation of Nomination and Remuneration
performance, its Committees and individual Directors reporting by the Auditors under Section 143(12) of
Committee with effect from 1st March 2020. Members’
The Board has put in place a mechanism for evaluation The following are the statutory Committees
approval is sought for his appointment as a Director the Act.
of its own performance and performance of its constituted by the Board and they function according
and also Whole-time Director designated as Directors-
to their respective roles and defined scope: Cost Auditor
Operations of the Company for a period of three years Committees and individual Directors. The evaluation
with effect from 1st March 2020. of the Board, Committees, Directors and Chairman • Audit Committee The Company has maintained cost records as
of the Board was conducted based on the evaluation specified by Central Government u/s 148(1) of
In accordance with the Act and the Articles of parameters, such as Board composition and structure, • Nomination and Remuneration Committee the Act. M/s. V J Talati & Co., Cost Accountants, were
Association of the Company, Shri A B Parekh and effectiveness of the Board, participation at meetings, appointed as the Cost Auditor for the financial year
• Corporate Social Responsibility Committee
Shri N K Parekh, Directors of the Company, retire by domain knowledge, awareness and observance of 2019-20 to conduct the audit of the cost records of
rotation and being eligible, offers themselves for governance, etc. For further details, please refer to the • Stakeholders Relationship Committee the Company and they have been reappointed as the
re-appointment. Report on Corporate Governance, which forms a part Cost Auditor for the financial year 2020-21. In terms
• Risk Management Committee
of this Annual Report. of the provisions of Section 148(3) of the Act, read
In terms of Section 203 of the Act and applicable
Details of composition, terms of reference and number with the Companies (Audit and Auditors) Rules, 2014,
provision of Listing Regulations, the Board of Directors Familiarisation Programme of meetings held for respective Committees are given as amended, the remuneration payable to the Cost
have appointed Shri Pradip Menon as the Chief
The Company has put in place an induction and in the Report on Corporate Governance, which forms Auditors has to be ratified by the Members of the
Financial Officer (Key Managerial Personnel) of the
familiarisation programme for all its Directors a part of this Annual Report. Further, during the year Company. Accordingly, at the ensuing AGM, the Board
Company with effect from 18th November 2019.
including the Independent Directors. under review, all the recommendations made by the seeks ratification of the remuneration payable to the
Policy on Directors’ Remuneration Audit Committee have been accepted by the Board. Cost Auditors for the financial year 2020-21.
The familiarisation programme for Independent
The policy on Directors’ remuneration is given as an Directors in terms of provisions of Regulation 46(2)(i) Corporate Social Responsibility (CSR) Report Secretarial Auditor and Secretarial Audit Report
annexure and is also available on the website of the of the Listing Regulations, is uploaded on the website and Policy
Company, www.pidilite.com. The remuneration paid of the Company. Pursuant to the provisions of Section 204 of the Act
The CSR Report as per Section 135 of the Act read and the Companies (Appointment and Remuneration
with Companies (Corporate Social Responsibility of Managerial Personnel) Rules, 2014, the Company
40
43

has appointed M/s M. M. Sheth & Co., Practising Disclosure of related party transactions with the Particulars of Employees and related disclosures The Company has complied with Secretarial Standards
Company Secretaries to undertake the Secretarial promoter(s)/promoter(s) group, which individually issued by the Institute of Company Secretaries of
Disclosure pertaining to remuneration as per Section
Audit of the Company for the financial year 2019-20. hold 10% or more share holding of the Company, as India on Meetings of the Board of Directors and
197(12) of the Act, read with Rule 5 of the Companies
The Report of the Secretarial Auditor is attached as per the Indian Accounting Standards, are set out in General Meetings.
(Appointment and Remuneration of Managerial
Annexure 2 to this Report. There is no qualification or Note No. 44 of the Standalone Financial Statements of
Personnel) Rules, 2014 is attached as Annexure 6 to Appreciation
adverse remark in their Report. the Company.
this Report.
Your Directors wish to place on record their
Conservation of Energy, Technology Absorption and Particulars of Loans, Guarantees or Investments
Details of employee remuneration as required under appreciation of the contribution made by the
Foreign Exchange Earnings and Outgo
Details of loans, guarantees or investments covered provisions of Section 197 of the Act and Rule 5(2) employees at all levels to the continued growth and
The particulars under Section 134 of the Act, read with under the provisions of Section 186 of the Act, are of Companies (Appointment and Remuneration of prosperity of your Company. Your Directors also
the Companies (Accounts) Rules, 2014 are attached as given in the Notes to the Financial Statements. Managerial Personnel) Rules, 2014 (including any wish to place on record their appreciation to the
Annexure 3 to this Report. modifications, thereof) are available at the Registered shareholders, dealers, distributors, consumers,
Employees Stock Option Scheme
Office of the Company during working hours and shall banks and other financial institutions for their
Risk Management be made available to any shareholder on request. continued support.
The Employees Stock Option Scheme (Scheme)
In compliance with Regulation 21 of the Listing is in line with SEBI (Share Based Employee Benefits)
General
Regulations, a Risk Management Committee has Regulations, 2014 (SBEB Regulations). The certificate
been constituted by the Board. The Risk Management of Auditors regarding implementation of the The Company has neither issued equity shares with
FOR AND ON BEHALF OF THE BOARD
Committee, also known as Risk Management Oversight Scheme is available for inspection of Members differential rights nor any sweat equity shares.
Committee, is entrusted with roles and powers which in electronic mode.
includes (a) Review and approval of risk management There have been no material changes and
The applicable disclosure, as stipulated under the
plan (b) Review progress on the risk management commitments affecting the financial position of the
SBEB Regulations, as on 31st March 2020 with regard
plan (c) Propose methodology on risk classification Company between the end of financial year and the Mumbai M B Parekh
to the Scheme, is provided in Annexure 4 to
and measurement. date of this Report. Date : 17th June 2020 Executive Chairman
this Report.
The Company has laid out a risk management plan for Extract of Annual Return
identification and mitigation of risks. The Company Extract of Annual Return of the Company is attached
has also constituted a Management Risk Committee as Annexure 5 to this Report. It is also available on the
which is chaired by the Managing Director and has website: www.pidilite.com.
Senior Leadership of the Company as members of
the Committee. The Management Risk Committee Business Responsibility Report
identifies the key risks for the Company, develops A Business Responsibility Report as per Regulation
and implements the risk mitigation plan, reviews and 34 of the Listing Regulations, detailing the various
monitors the risks and corresponding mitigation plans initiatives taken by the Company on the environmental,
on a regular basis and prioritises the risks, if required social and governance front, forms an integral part of
depending upon the effect on the business/reputation. this Report.
The other details in this regard are provided in the Internal Control Systems and their Adequacy
Report on Corporate Governance, which forms a part
of this Annual Report. The Company has adequate internal financial control
procedures commensurate with its size and nature
Contracts and Arrangements with Related Parties of business.
All contracts/arrangements entered into by the The Company has appointed Internal Auditors who
Company during the financial year with related parties periodically audit the adequacy and effectiveness of
(as defined in the Act and Listing Regulations) were the internal controls laid down by the management
in the ordinary course of business and on an arm’s and suggest improvements.
length basis. During the year, the Company did not The Audit Committee of the Board of Directors
enter into any contract/arrangement/transaction with approves the annual internal audit plan and
related parties which could be considered as material periodically reviews the progress of audits as per
in accordance with the policy of the Company on approved audit plans along with critical internal audit
materiality of related party transactions or which is findings presented by internal auditors, status of
required to be reported in Form No. AOC-2 in terms of implementation of audit recommendations, if any, and
Section 134(3)(h) read with Section 188 of the Act and adequacy of internal controls.
Rule 8(2) of the Companies (Accounts) Rules, 2014. Significant/Material orders passed by the Regulators
The Policy on materiality of related party transactions There are no significant/material orders passed by the
and dealing with related party transactions, as Regulators or Courts or Tribunals impacting the going
approved by the Board, is available on the website: concern status of the Company and its operations
www.pidilite.com. in future.
42
SOCIAL social & community services initiatives 45

Agriculture &
The Company has always believed Horticulture
in contributing for the betterment The Company has been The major breakthrough has 40-50 years if maintained
supporting the partner been achieved by farmers properly. On the other hand,
of society where it operates and with organisations for agriculture opting for bio-based fertilizer the shade net will yield an
this objective, it has been engaging and horticulture crops
through collaboration with
instead of chemical fertilizer.
While 2,071 farmers have
additional income of ` 10,000
to ` 15,000 per year on
in and supporting various social and subject-matter experts and
relevant national institutes.
significantly decreased usage
by 30% of chemical fertilizer,
an average.
community service initiatives for the During the year, the Company
assisted in the formation of 108
another 520 farmers have
begun organic farming
For enhancing the skill of
farmers, Agro ITI courses have
past several years, long before the new Farmer Clubs (covering by widely using Jivamrut been initiated at Agriculture
additional 1,500 farmers) in and Bijamrut. Research Station, Mahuva,
concept of corporate social Bhavnagar and Amreli Districts in collaboration with Junagadh
(for cotton, groundnut, onion, With respect to horticulture, Agriculture University (JAU)
responsibility came into being. and other relevant crops). With we have developed 6 wadis along with the successful
these additions, now there are (one-acre orchard) along with implementation of two
448 Farmer Clubs covering 5 shade nets for replication of batches. We also completed
over 13,000 farmers. vegetable and fruit crops. two batches of Agriculture
These orchards will increase courses at ITI Jafrabad.
Such initiatives are undertaken Data of 10,500 farmers have the income of farmers and
directly by the Company and been geo-tagged with area yield continuous income for
through various organisations, mapping on a digital portal.
such as Trivenikalyan This helps in enhanced analysis
Foundation (TKF), Gram for adoption of best practices,
Nirman Samaj (GNS), Shree such as soil management,
Gram Daxinamurti - Manar, intercropping, drip irrigation,
Hanumant Hospital (managed etc. Geo-tagging has
by Shree Hanumant Seva facilitated provision of
Medicare Trust), Shree Mahuva specific initiatives for farmers
Education Trust, The Balvant concerning improvement of
Parekh Centre for General yield and reduction in the cost
Semantics and Other Human of cultivation. About 65%
Sciences, Gram Daxinamurti, of the farmers actively used
Bhavnagar, Shri N N Mehta these recommendations which
Memorial Education Trust, resulted in a 12% decrease
Lokbharti Gram Vidyapeeth in the cost of cultivation for
Trust, Shri Balvant Parekh cotton and groundnut crops.
Science City and Gram Seva We have launched knowledge
Kendra Khadasli. As of now, series of booklets on various
most of these initiatives are crops and agricultural
centred on the villages of practices (cotton, groundnut,
Gujarat. However, seeing the onion, intercropping, animal
encouraging impact of these husbandry, soil and water
initiatives, the Company plans management and composting)
to conduct similar initiatives which has benefitted
in the surrounding areas of Farmer Clubs.
COMMITMENT
DEMONSTRATING LOW-COST AGRICULTURE TECHNOLOGY FOR FARMERS

its factories.
44
social & community services initiatives 47

Farmer Producer
Organisation (FPO)
The Company has supported
the farmers for registering and
operating the Farmer Producer
Organisation as per the
provisions of Companies
Act, 2013.
The FPO has started collective

procurement of groundnut,
which will help farmers fetch
higher prices than the local
market. The FPO helped
farmers to sell groundnut
worth ` 40 lakhs in the first
year itself, which were sold for
processing (salted, roasted,
coated and flavored) peanuts
to other parties. The FPO has
collaborated with Government
of Gujarat for the set-up of
Custom Hiring Centre (CHC) FIRST AGM OF FARMER PRODUCER ORGANISATION, MAHUVA
for farm equipment at Mota
Khutavda village. The CHC is
equipped with major
agricultural implements, which
are provided to marginal
farmers at nominal rates
for use in their fields
whenever needed. FIRST FEMALE CALF BORN VIA SEXED SEMEN TECHNOLOGY
Centre for under drip irrigation.

Agriculture-Horticulture The farmers are trained to
grow aromatic crops like
Development at Gram citronella, lemongrass, palma Milk and Animal Health
Daxina Murti, Manar rosa, vetiver, etc. as intercrops
with main agriculture crops. The Company has continued feed has shown encouraging
A steam distillation unit has its support to Milk and Animal results in terms of health
The Centre has successfully Health Initiative in Mahuva improvement of cattle,
demonstrated agriculture, been commissioned for value
addition of these aromatic Taluka. The farmers are trained increase in milk yield and
horticulture, aromatic, fruit, on best animal husbandry reduction in feeding cost.
and medicinal crops. crops, which will yield them
additional income. practices like animal feeding, The innovative practice of
Farmers from 35 adjoining breeding, health and cattle sexed insemination has been
villages have received training We have collaborated with management. introduced at farmers' cow
at the Centre, to learn the best the State Government for sheds which ensures delivery
package of practices. replication of citronella in 100 Best-of-the-best (BoB) villages of female calves. Currently,
acres of farmers’ land, which is and farmers are identified, out of the 40 gestating cows,
Low-cost technologies/ under implementation for their best practices are studied 30 have delivered female
methods like one farmer one expansion of aromatic crop and replicated with other calves and the rest will deliver
cow biogas model, shade net, cultivation. farmers. We observed average during August-September
fruit fly trap, inter cropping, increase in milk yield by 2020. Therefore, as of now we
Integrated Pest and Nutrient An in-house training centre 19% per animal. have achieved 100% success
Management (IPNM), mulching, for farmers is being provided, rate. The Company has also
border plantation, organic which will help in the transfer Our team of veterinary doctors
formulated special recipes conducted 3,800 artificial
farming, no-tillage farming, of knowledge from experts, inseminations last year with
etc. have been demonstrated scientists and universities for cattle feed. As per the
SHRI M B PAREKH REVIEWING THE
feedback of farmers, the cattle a 55% success rate.
46 along with 100% coverage to farmers. CENTRE'S PROGRESS AT MANAR

Model Village
Development
Under the Company’s unique
initiative ‘Model Village: Kushal
Gram’ at Kalsar, Gujarat, 1,197
additional villagers were skilled
in various areas, taking the
total tally to over 9,697
villagers.
As a part of the cleanliness

drive, more than 1,800
INAUGURATION OF
AKHEGADH CHECK DAM households were helped to
create sanitation facilities
Water Resource within their dwelling units.
Management The villagers were trained to
paint their houses (Project
The Company has continued to Amreli district to accomplish Rangeen Kalsar) and during
undertake water management the task of creation of the year, an additional 168
activities (check dams, farm watershed structures. such houses were painted
ponds, etc.) in cooperation The five operational centres in the same colour taking
with the Department of are (a) Otha (b) Mahuva the cumulative number to
Narmada, Water Resources, (c) Manar (d) Sanosara and 1,568 houses.
Water Supply and Kalpsar (e) Khadasli. The centres are
Department of Government equipped with all the required
of Gujarat. In FY 2019-20, machinery and work is done
37 check dams, 14 pond under the supervision of
deepening and 121 farm experienced civil engineers.
ponds were completed.
Total rainwater harvested
Cumulatively, 96 check dams, is 232 million litres during
54 pond deepening, and 369 FY 2019-20 through the
farm ponds have been construction of new check
completed to date with the dams, along with desilting and
assistance of the Company. deepening of existing check
dams/ponds.
The Company has also initiated

the development of 79 water During the year, 1,300 hectares
structures (51 check dams and of additional farmland were
28 ponds) for the current year converted into drip irrigation
and additional water structure and more than 283 additional
restorations are under wells spanning over 30 villages
discussion with the state were recharged, for improving
government for the next year. the quality of groundwater.
Cumulatively, it translated into
The Company has continued 2,800 hectares of farmland BEAUTIFICATION OF KHAREDI
48 its support for five watershed and 1,007 wells in 100 villages. SCHOOL USING SPECIAL PAINT
centres in Bhavnagar and

Swachtha Initiative Healthcare
The Company has collaborated During the year, Hanumant Hospital in Mahuva treated over
with Swachh Bharat Mission 63,505 outpatients, performed over 3,179 surgeries and
(Urban) for conducting successfully handled 5,287 emergency cases. Four educational
cleaniness drives starting from training programmes were conducted for medical fraternity.
Mahuva city. The initiative was Seven speciality medical camps were conducted in-house and
launched on 2nd October 2019, in the surrounding areas under the Doctor Connect Programme.
commemorating the 150 th RENOVATION OF COMMUNITY
Birth Anniversary of TOILETS IN MAHUVA In collaboration with the Government Health Department,
Mahatma Gandhi. pediatricians from Hanumant Hospital conducted OPDs two days
Sanitation a week at various Primary Health Centres (PHCs) and Community
Major activities like regular Health Centres (CHCs) ensuring that the best healthcare reaches
cleaning of roads, allocation The Company supported in the most remote locations of Mahuva, Gujarat. Audiometry, squint
of dustbins to households, building 2,340 new toilets surgery, cleft lip and palate surgery, pediatric orthopedic surgery
training safai karamcharis, (taking total to over 13,340 till and physiotherapy are given free of charge to detected children
provision of fogging date) in Mahuva Taluka. It has with special need.
machine, repair and continued to work closely with
renovation of community the Government and provides Hanumant Hospital is enrolled under Balsakha-3 scheme,
toilets were initiated. support to the households to through which we have provided free treatment to 107 critical
achieve the vision of open newborn babies during the year. Hanumant Hospital is enrolled
A massive drive for launch defecation-free status for under Ayushman Bharat scheme of the Government. Under this,
of this initiative in Mahuva city the villages of Mahuva we provided cashless treatment to 432 beneficiaries this year.
was undertaken with Prabhat Taluka, Gujarat.
Pheri, oath taking, city cleaning Hanumant Hospital is the only hospital in Bhavnagar district
by Regional Commissioner of Through the relentless with an enrollment of Mukhyamantri Amrutum Yojana under the
Municipalities, DDO Bhavnagar efforts of the Company urology cluster. A total of 1,157 patients received cashless dialysis
and various MLAs, dignitaries in collaboration with the service under this scheme, whereas cumulatively 3,700
and over 1,000 citizens Government, the district beneficiaries availed benefit of cashless service.
in participation. of Bhavnagar has been
declared Open Defecation- Hanumant Hospital has conducted free eye and pediatric
Free by Government. checkup camps through mobile ophthalmic van in 46 villages
of Mahuva and surrounding area, screened 4,250 patients
CITY CLEANING UNDER ‘SWACHTHA DRIVE’ LAUNCHED IN MAHUVA and conducted 127 free cataract surgeries with Introcular
lenses at Hanumant Hospital in collaboration with Vision
Foundation, Mumbai.
Hanumant Hospital runs three schemes, namely, Chitrakutdham

Arogya Scheme, Jaswant Mehta Arogya Scheme and Arogya
Sanjivani Scheme and has provided free treatment to 10,590
beneficiaries. Hanumant Hospital is having Arogya Fund Scheme
to coordinate and help economically backward class of patients
for treatment through donors. This year 435 patients were
provided help amounting to ` 6.20 lakhs.
In collaboration with the Health Department of Bhavnagar,

a survey of malnourished children was undertaken. Children in
the age group of 0-5 years were assessed from 351 Aanganwadis
to address the malnutrition problem in the district.
50
social & community services initiatives Education 53

The Company continues to education, the Company through the use of games,
improve the basic learning supported the installation of storytelling, songs, etc. as an
abilities of children in rural 35 new learning software in effective mode of learning.
areas. Taking forward the primary schools, which took The project has been initiated
concept of ‘WAGALE’ the total tally to 335 softwares in collaboration with 20
(Wanchan-Ganan-Lekhan) with 245 LED TVs. In secondary Government Aanganwadis.
is now operational in total schools, 26 new software
of 153 schools. WAGALE were installed and 13 LED TVs The Company provides a
helps students with slow were distributed. platform to encourage children
learning abilities by providing to develop their creative ability.
them training sessions Shri Sanjay Prasad, IAS (Hon. As a part of this, a drawing
through practical methods, State Election Commissioner competition was held this year
visual presentations and of Gujarat and Former among more than 19,600
interactions with academically Additional Chief Secretary students across 140 schools.
fast-learning students. Agriculture) along with other Of all the pictures, more than
IAS Officers inaugurated our 600 were selected, framed and
More than 5,200 children newly constructed Triveni placed in schools to provide
are enrolled under Kalyan Education Trust (TKET) motivation and inspiration to
‘WAGALE’ initiative. Boys and Girls hostel. the students.
A baseline assessment for
Gujarati and Mathematics The Company has also Shri N N Mehta Memorial
subjects was conducted at the supported beautification of Education Trust provided
start of the year. Assessment 97 schools in FY 2019-20, scholarship amounting to
results indicated that 17% of which were painted by ` 41 lakhs to 244 deserving
the students assessed were a special weatherproof paint students for higher education.
in the low-scoring category made as per Government Prizes amounting to ` 1.84 lakhs,
(obtained 0-10 marks out of specifications. were given to 126 students for
40). However, after the sports and cultural activities.
midline assessment, only A pre-primary education The increase in number of
7% of students fell in the centre based on Giju bhai's students getting scholarship
low-scoring category. methodology (110 years old) or prizes is an indication of
COMMUNITY HEALTH CHECKUP CAMP BY HANUMANT HOSPITAL DOCTORS
The endline assessment has has been initiated to develop improvement in the standard
been postponed due to the learning ability of children of education in the area.
B. K. Parekh and physiotherapy students at
Bhavnagar celebrated WPD at
lockdown and shall be
implemented after June 2020.
below the age of 5 years.
It focuses on the idea of the
Parkinson’s Disease & an old age home. The centres To improve the level of ‘doing and learning’ system
Movement also found ways to keep
members active and fit.
Disorder Society Anand SG hosted a Sports Day
in December 2019, which saw INAUGURATION OF TKET BOYS HOSTEL BY SHRI SANJAY PRASAD
B. K. Parekh Parkinson’s whole-hearted participation by
Disease and Movement Pwps. The Vadodara members
Disorder Society (BKPPDMDS) also participated in a marathon.
works for rehabilitation of
persons with Parkinson’s Sessions on healthy living and
(Pwps) to improve quality of aging were held for senior
life. There are 10 centres in citizens at senior citizen forums
Gujarat and 2 in Pune, which and associations. Mahuva and
conduct activities like speech, Pune centres also launched a
occupational, physiotherapy Healthy Aging programme.
and psychological services. On the busy streets of

Additionally, diet and nutrition Ahmedabad, Pwps, caregivers
tips, yoga sessions, expert and volunteers conducted a
talks, festive celebrations Rally and Roadshow to raise
and picnics are also arranged. awareness on Parkinson’s.
The Society has been working
The 2019 World Parkinson’s closely with college students
Day (WPD) was celebrated through volunteering initiatives.
across centres, with 200+ Educational trainings were also
people attending the held for students in homeopa-
52 Ahmedabad celebration. Pwps thy and physiotherapy streams.

Initiatives for Women Skill Initiatives
The Company helped to form, force for self-development unit, aloe vera unit, khakhara The Company has continued exercise, sample survey was
nurture and develop 190 new of each SHG woman member. units, pickle unit, masala unit, its collaboration with undertaken of 3,000
Self Help Groups (SHGs) - In addition to this saving and bio phenyl unit, jute and cloth Directorate of Employment apprentices and
Mahila Mandals in Bhavnagar credit initiative, SHG women bags unit, bio-pesticide unit, and Training (under Labour 200 establishments along
and Amreli districts of Gujarat. were encouraged and plant nursery, Gram Haat, etc. and Employment Department), with a secondary literature
More than 2,200 additional provided with different types Government of Gujarat for the review. The narrative report
women became members of of livelihood training, which A massive event with sixth year, to strengthen the with the findings and
these SHGs. With this, the total further translated into different participation of over 1,000 skill ecosystem in the State. suggestions was appreciated
number of SHGs reached 440 mini businesses like khakhra women was undertaken on During the current year, a total by the Government.
of 13,000 trainees from 185
with 4,900 women members’. production, honeybee farming, the occasion of Womens’ Day,
ITIs were benefitted from The Company has also
These SHGs serve as a pickle making, seaweed with Collector of Bhavnagar,
carpentry, plumbing, electrician, continued its collaboration
platform for the women to gain banana pseudostem Shri Gaurang Makwana and construction technician with Kaushal Vardhan Kendras
financial freedom, to have a processing and bio-pesticide and DDO Bhavnagar courses supported by (KVKs), providing skill training
source of credit that can be a production. Cumulatively, Shri Varunkumar Barnwal the Company. mainly in 10 sectors covering
stimulus for their income SHGs now run and manage as Chief Guests. 75 courses. Major sectors are
generation activity and a sanitary pad unit, wooden toys Under Public Private garment, beauty and wellness,
buffer to absorb various Partnership (PPP) scheme of agriculture, electrical, IT, life
household financial needs. the Government, the Company skills and soft skills. Since
has been Industry Partner in inception, more than 18 lakh
To make these SHGs 4 ITIs for the past 4 years, trainees have benefitted from
self-sustainable, institution where efforts are focused on these KVKs of which about
creation was necessary. Hence strengthening training 10 lakh are women trainees.
the Company helped to create delivery, both in scale and During the year 2019-20,
one cluster federation with quality. This year also, we have more than 17,000 trainees
12 village organizations. been selected by the have availed of skill training
Government of Gujarat as so far out of which 13,000
An ecosystem has been industry partner in five ITIs are women.
developed in which basic under World Bank funded
SHGs, village organization project Skills Strengthening for The Company, based on past
(VO) and federation work in Industrial Value Enhancement performance, has also been
(STRIVE), which aims at assigned the role of Third
harmony to create a positive
integrating and enhancing Party Inspection Agency for
1,000+ SHG WOMEN AT WOMEN’S DAY EVENT delivery quality of ITIs. The KVKs for the financial year
Company is providing support 2019-20. Special KVKs have
as an industry partner in been started to cater to the
Gujarat World Skill skill needs of jail inmates.
Competition 2021 in cabinet A total of 10 such KVKs are
making, joinery and plumbing operational in Gujarat. New
and heating trades. The initiatives have been taken
support is provided in terms of to start KVKs in State Armed
mobilising candidates, Police campuses to benefit the
screening them and facilitating families of police personnel by
their assessment at Zonal and bringing them under the ambit
State levels. of skill training.
During the year, on request On 19 th September 2019, the

from Directorate of Company was awarded an

Employment and Training, Appreciation Letter from
Government of Gujarat, an Hon’ble Chief Minister of
assessment study to identify Gujarat, Shri Vijay Rupani,
various enabling and hindering for its several initiatives and
factors for effective performance as a knowledge
implementation of the partner in enhancing skills and
Mukhyamantri Apprenticeship strengthening skill ecosystem
Scheme was undertaken by in Gujarat.
the Company. Under the
TRAIN THE TRAINER PROGRAMME
54 ORGANISED BY SKILL TEAM

Khadi Initiative
The Company continued
its association with Mahuva
Khadi Bhandar. As a part
of collaboration with Khadi
Gramodyog Sangha-Samanvay,
Rajkot, 25 solar charkhas and
6 solar looms were provided
to the spinners and weavers
for training and product
development leading,
thereby to self-employment
opportunities and livelihood
promotion. Apart from it,
5 other khadi udyog units
are being provided with
25 solar charkhas and
5 solar looms each.
The initiative focuses on

addressing the need for
modernization, value addition,
weaving, spinning and dyeing,
etc. along with training and LECTURE BY PROF. LEWIS R. GORDON (UNIVERSITY OF CONNECTICUT)
testing to make the khadi
weaving process profitable
for the community.
General Semantics
This year witnessed the Mr. Rajesh Kochhar, Honorary
10 th anniversary of Balvant Professor, Punjab University,
SOLAR-POWERED CHARKHAS AND POWER LOOM AT RAJKOT KHADI CENTER
Parekh Centre for General Chandigarh in October, 2019;
Semantics and Other Human ‘The Role of Intellectuals in
Sciences and was celebrated the Age of Conformity’ by
with a series of lectures Mr. Ramin Jahanbegloo,
conducted throughout the Executive Director of the
year along with its regular Mahatma Gandhi Centre
programmes like national for Non-violence and Peace
seminars, symposiums, Studies and the Vice-Dean
lectures, workshops and of the School of Law at
a cultural programme in Jindal Global University,
March 2020. Delhi, in November 2019 and
‘A Philosophical Look at Black
The Balvant Parekh Music and its recent Afro-Indo
Distinguished Lecture on Mixtures’ by Professor Lewis
‘Fostering Humaneness: R. Gordon, University of
Some Reflections’ was Connecticut in December, 2019.

delivered by Dr. Sudhir Kakar,
a noted psychoanalyst The Centre hosted its
and author in March 2020 13 th national workshop on
in Baroda. ‘General Semantics and
Western Philosophical Thought:
Under the ongoing Balvant A Comparative Approach’
Parekh Distinguished Lecture conducted by various
Series, several lectures were prominent speakers in
conducted namely ‘Modern January-February, 2020.
56 Hinduism in India’ by
Annexure 1 to the Directors’ Report 59

REPORT ON CORPORATE SOCIAL RESPONSIBILITY
1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be 5. Details of CSR spent during the financial year:
undertaken and a reference to the web-link to the CSR policy and projects or programs:
(a) Total amount to be spent for the financial year- 24.81 crores
(a) Focus areas: (b) Amount unspent, if any – Nil
The Company supports various bodies in carrying out activities in the areas of rural development, (c) Manner in which the amount spent during the financial year is detailed below:
education, health care, general semantics etc.
( in crores)
(b) CSR Objectives: Sr. CSR project or activities Sector in Location Amount Amount spent Cumulative Amount spent:
No. identified which the where outlay on the projects expenditure
To attain its CSR objectives in a professional manner and integrated manner, the main objectives are: projects are projects are (budget) or programs: upto the Direct or
covered undertaken projects reporting through
(1) To promote, carry out, support activities relating to: Education and Training including in Science (Direct and implementing
(state/ or period
and Technology, Humanities etc; Healthcare; Welfare of Children, Women, Senior Citizens and district) program Overhead agencies*
Differently Abled Persons; Employment enhancing Vocational skills; Sanitation; Water management; wise expenditure
on projects or
Agriculture; Horticulture; Milk and Animal Health; promotion of Farmer Producer Organisation; programs)
Swachtha Initiative; promotion of Culture; Art & Craft; Conservation of Natural Resources;
Promotion and development of traditional Arts & Handicrafts, Khadi and Handloom; Employment 1. Access to higher Promoting Gujarat/ 4.36 4.36 4.36 Direct and
education; programmes education Maharashtra through
Generation and Government Scheme System; Environment Sustainability; Science & Technology; for high school and implementing
Rural Development; Animal Welfare; welfare and development measures towards reducing secondary school teacher; agencies
inequalities faced by Socially and Economically Backward groups and such activities may include providing professional,
vocational courses for rural
establishing, supporting and / or granting aid to institutions engaged in any of the activities students; school & college
referred to above. with hostel only for girls
and women supporting
(2) To conduct and support studies & research; publish and support literature, publications & poor students for higher
promotion material; conduct and support discussions, lectures, workshops & seminars in any of the education etc.
areas covered above. 2. Assistance to Cancer Promoting Gujarat/ 5.68 5.68 5.68 Direct and
patients; supporting health care Maharashtra through
(3) To promote, carry out, support any activities covered in Schedule VII to the Companies Act, 2013, various activities of implementing
as amended from time to time. Hanumant hospital; agencies
diagnosis and treatment
In the financial year 2019-20, the Company has undertaken activities relating to promoting Education, of parkinson’s disease etc.
Healthcare, Rural Development and Sanitation.
3. Water resource Rural Gujarat 15.47 15.47 15.47 Direct and
management; development through
(c) Web-Link to the CSR Policy: infrastructure implementing
http://www.pidilite.com/corporate-governance/ (under the head “Policies & Codes”) development for agencies
agriculture; etc.
2. The Composition of the CSR Committee as on 31st March 2020 is as follows: 4. Miscellaneous Contribution Promoting Gujarat 0.79 0.79 0.79 Direct and
towards construction Sanitation through
(a) Shri Sanjeev Aga of toilets and Swachh implementing
Bharat Abhiyan agencies
(b) Shri N K Parekh
Total expenditure towards CSR 26.30 26.30 26.30
(c) Shri A B Parekh
*Implementing agencies: Balwant Parekh Centre for General Semantics and other Human Sciences; Triveni Kalyan
(d) Smt. Meera Shankar Education Trust; Gram Nirman Samaj Gram Vikas Yojna; Hanumant Seva Medicare Trust; Lokbharti Gram Vidyapeeth Trust;
Trivenikalyan Foundation; Rotary Charitable Trust, Vapi; Ravi Krupa Trust; B K Parekh Parkinson’s Disease & Movement
(e) *Shri Debabrata Gupta Disorder Society; Monghiben Balvihar Trust; Gram Daxina Murti; Indian Cancer Society; Gram Seva Kelavani Mandal Trust;
Dakshinamurty Vidyarthi Bhavan; Sadbhavna Trust; Hiralal Parekh Parivar Charitable Trust; Parkinson’s Disease & Movement
* With effect from 1st March 2020
Disorder Society; Inner Wheel Club of Bombay; Helping Hand Charitable Trust; Rotary Foundation For Education & Learning;
N. N. Mehta Memorial Education Trust; DDO Bhavnagar.
3. Average net profit of the Company (calculated as per Section 198 of the Companies Act, 2013)
for last three financial years:
6. In case the Company has failed to spend the two per cent of the average net profit of the last three
( in crores) financial years or any part thereof, the Company shall provide the reasons for not spending the amount
Sr. in its Board Report –

Financial Year Amount
No.
Not Applicable
1 2018-19 1,292.61
7. Responsibility statement:
2 2017-18 1,252.58
The CSR Committee confirms that the implementation and monitoring of CSR Policy, is in compliance with
3 2016-17 1,176.41 CSR objectives and Policy of the Company.
Average Net profit 1,240.53
4. Prescribed CSR Expenditure (2% of the amount as in item 3 above): Place: Mumbai BHARAT PURI MEERA SHANKAR
58 24.81 crores Date: 17th June 2020 Managing Director Chairperson CSR Committee

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2020 Annexure-A
[Pursuant to Section 204(1) of the Companies (Not applicable to the Company during the provisions of Section 173 of the Act and a system The Members,
Act, 2013 and Rule No. 9 of the Companies Audit Period); exists for seeking and obtaining further information Pidilite Industries Limited,
(Appointment and Remuneration of Managerial (d) The Securities and Exchange Board of and clarifications on the agenda items before the Regent Chambers, 7th Floor,
Personnel) Rules, 2014] India (Share Based Employee Benefits) meeting and for meaningful participation at 208, Nariman Point,
Regulations, 2014 the meeting. Mumbai-400 021.
(e) The Securities and Exchange Board of All decisions at board meetings and committee Our report of even date is to be read along with
To,
India (Issue and Listing of Debt Securities) meetings were carried out unanimously as recorded in this letter.
The Members,
Regulations, 2008 (Not applicable to the the minutes of meetings of the Board of Directors or 1) Maintenance of secretarial record is the
Pidilite Industries Limited,
Company during the Audit Period); Committees of the Board, as the case may be. responsibility of the management of the
Regent Chambers, 7th Floor,
(f) The Securities and Exchange Board of India I further report that there are adequate systems and Company. Our responsibility is to express an
208, Nariman Point,
(Registrars to an Issue and Share Transfer processes in the Company commensurate with the size opinion on these secretarial records based on
Mumbai-400 021.
Agents) Regulations, 1993 regarding the and operations of the Company to monitor and ensure our audit.
I have conducted the secretarial audit of the compliance with applicable laws, rules, regulations
Companies Act and dealing with client; 2) We have followed the audit practices and
compliance of applicable statutory provisions and and guidelines.
the adherence to good corporate practices by Pidilite (g) The Securities and Exchange Board of India processes as were appropriate to obtain
(Delisting of Equity Shares) Regulations, I further report that during the audit period the reasonable assurance about the correctness
Industries Limited (hereinafter called the Company).
2009 (Not applicable to the Company Company has following specific events/ actions having of the contents of the Secretarial records.
Secretarial Audit was conducted in a manner that
during the Audit Period); a major bearing on the Company’s affairs in pursuance The verification was done on test basis to ensure
provided me a reasonable basis for evaluating the
(h) The Securities and Exchange Board of India of the above referred laws, rules, regulations, that correct facts are reflected in secretarial
corporate conducts/statutory compliances and
(Buyback of Securities) Regulations, 2018 guidelines, standards, etc. records. We believe that the processes and
expressing my opinion thereon.
(Not applicable to the Company during the - Special Resolution passed by the Members practices, we followed provide a reasonable basis
Based on my verification of the Company’s books,
Audit Period); and at the 50th AGM held on 6th August 2019 for for our opinion.
papers, minute books, forms and returns filed and
(i) The Securities and Exchange Board of re-appointment of Shri N. K. Parekh as Non- 3) We have not verified the correctness and
other records maintained by the Company and also
India (Listing Obligations and Disclosure Executive Director as required under regulation appropriateness of financial records and Books
the information provided by the Company, its officers,
Requirements) Regulations, 2015; 17(1A) of LODR Regulations, 2015
agents and authorised representatives during the of Accounts of the Company.
(vi) I further report that, having regard to the - Special Resolution passed by the Members
conduct of secretarial audit and considering practical 4) Where ever required, we have obtained
compliance system prevailing in the Company at the 50th AGM held on 6th August 2019
difficulties caused by lockdown imposed by state the Management representation about the
and on examination of the relevant documents for re-appointment of Shri B S Mehta as an
government due to Covid-19 pandemic, I hereby compliance of laws, rules and regulations and
and records in pursuance thereof, on test check Independent Director for a second consecutive
report that in my opinion, the Company has during happening of events, etc.
basis, the Company has complied with the term of five years upto 31st March 2024.
the audit period covering the financial year ended 5) The compliance of the provisions of Corporate
on 31st March 2020 (Audit Period) complied with following laws applicable specifically to - Special Resolution passed by the Members
at the 50th AGM held on 6th August 2019 for and other applicable laws, rules, regulations,
the statutory provisions listed hereunder and also the Company:
re-appointment of Shri Uday Khanna as an standards is the responsibility of management.
that the Company has proper Board-processes and (a) The Environment (Protection) Act, 1986 Our examination was limited to the verification of
Independent Director for a second consecutive
compliance-mechanism in place to the extent, in the (b) Hazardous Waste (Management & Handling) procedures on test basis.
term of five years upto 2nd April 2024.
manner and subject to the reporting made hereinafter: Rules 1989
- Special Resolution passed by the Members 6) The Secretarial audit report is neither an
I have examined the books, papers, minute books, (c) The Manufacture, Storage and Import of assurance as to the future viability of the
at the 50th AGM held on 6th August 2019 for
forms and returns filed and other records maintained Hazardous Chemicals Rules, 1989 Company nor of the efficacy or effectiveness
re-appointment of Smt. Meera Shankar as an
by the Company for the financial year ended on I have also examined compliance with the with which the management has conducted the
31st March 2020 according to the provisions of: applicable clauses of the following: affairs of the Company.
term of five years upto 29th July 2024.
(i) The Companies Act, 2013 (`the Act’) and the (i) Secretarial Standards (i.e SS-1 relating to
- Company has entered into Joint Venture
rules made thereunder Board Meetings & SS-2 relating to General
agreement with Litokol S.p.A, Italy, Corporacion
(ii) The Securities Contracts (Regulation) Act, 1956 Meetings) issued by the Institute of Company
Empresarial Grupo Puma S.L., Spain and Chetana
(‘SCRA’) and the rules made thereunder; Secretaries of India.
Exponential Technologies Pvt. Ltd., India.
(iii) The Depositories Act, 1996 and the Regulations (ii) The Listing Agreements entered into by the
- Company has acquired 70% of share capital
and Bye-laws framed thereunder; Company with the Stock Exchanges.
of Tenax India Stone Products Pvt. Ltd., group
(iv) Foreign Exchange Management Act, 1999 and During the period under review, the Company has company of Tenax S.p.A, Italy.
the rules and regulations made thereunder to the complied with the provisions of the Act, Rules,
extent of Overseas Direct Investment Regulations, Guidelines, Standards, etc.
mentioned above. For M. M. SHETH & CO. For M. M. SHETH & CO.
(v) The following Regulations and Guidelines (Company Secretaries)

I further report that the Board of Directors of the (Company Secretaries)
prescribed under the Securities and Exchange
Company is duly constituted with proper balance M. M. SHETH M. M. SHETH
Board of India Act, 1992 (‘SEBI Act’):-
of Executive Directors, Non-Executive Directors (Prop.) (Prop.)
(a) The Securities and Exchange Board of
and Independent Directors. The changes in the FCS No. 1455 FCS No. 1455
India (Substantial Acquisition of Shares and
composition of the Board of Directors that took place CP No. 729 CP No. 729
Takeovers) Regulations, 2011;
during the period under review were carried out in Place: Mumbai Place: Mumbai
(b) The Securities and Exchange Board of
compliance with the provisions of the Act. Date: 17th June 2020 Date: 17th June 2020
India (Prohibition of Insider Trading)
Regulations, 2015; Adequate notice is given to all directors to schedule UDIN: F001455B000351222 UDIN: F001455B000351222
the Board Meetings, agenda and detailed notes on
(c) The Securities and Exchange Board of This report is to be read with our letter of even date
agenda were sent at least seven days in advance
India (Issue of Capital and Disclosure which is annexed as Annexure-A and forms an
60
except when Board meetings were called by giving
Requirements) Regulations, 2018 integral part of this report.
less than seven days notice in accordance with the

Statement containing particulars pursuant to Section 134(3)(m) of the Companies Act, 2013 read with 2. Benefits derived like product improvement, cost reduction, product development or import substitution:
Rule 8(3) of the Companies (Accounts) Rules, 2014.
R&D innovations have contributed in improved sales, product performance efficiencies, process efficiencies,
Your Company undertook various measures for conservation of energy and use of alternate sources of energy capacity debottlenecking, addressing market needs for new applications, product cost reduction and
which resulted in total savings of 20.5 crores during the year. Savings accrued during the last 3 years (2017-20) improved environment compliance.
is 52.9 crores.
3. In case of imported technology (imported during the last 3 years reckoned from the beginning of the
A) CONSERVATION OF ENERGY/ALTERNATE SOURCE OF ENERGY financial year):
The details of technology imported, the year of import, whether the technology been fully absorbed, if not
1. Steps taken or impact on conservation of energy:
fully absorbed, areas where absorption has not taken place, and the reasons thereof:
The manufacturing units of the Company have continued their efforts to reduce energy consumption.
The technology for manufacture of Hot melt received by the Company during the year 2018-19, pursuant to
Various steps taken by your Company are given below:
a technology agreement signed in the previous year, shall be fully absorbed on installation of the proposed
1) Replacement of conventional lights with LED. Hot melt adhesive plant by the Company. There was no import of technology during the year 2019-20.
2) Condensate recovery in boiler. 4. Expenditure incurred on Research and Development:
3) Replacement of low efficiency motor with high efficiency motor. ( in crores)
4) Installation of VFD on motors.
Year ended Year ended
5) Installation of Heat pump for generation of hot & chilled water. 31st March 2020 31st March 2019
6) Installation of energy efficient EC fans in AHU. i) Capital 1.85 0.45
7) Installation of thyristor controller for heaters. ii) Recurring 69.37 64.09
TOTAL 71.22 64.54

2. Steps taken by the Company for utilizing alternate sources of energy:
Various initiatives and steps taken by your Company are given below: C] FOREIGN EXCHANGE EARNINGS AND OUTGO
a. Green Fuel: The foreign exchange earned in terms of actual inflows during the year and the foreign exchange outgo
during the year in terms of actual outflows.
Large Boilers and Thermic Fluid Heaters are being operated with green fuel (Biomass) in place of
fossil fuels. During the year, by use of green fuels, your Company has saved 14.1 crores and ( in crores)
reduced 28,100 Tons of Eq. Co2 emission compared to use of conventional fuels. Year ended Year ended
31st March 2020 31st March 2019
b. Wind Energy:
i) Foreign exchange earned 601 543
Power generated through wind farm projects at Gujarat and Maharashtra is utilized in the
manufacturing units and corporate office in Mumbai. This use of power from windmills of ii) Foreign exchange used 911 972
49 Lakh KWH has resulted in saving of 4.2 Crores in the year.
c. Solar Energy:
During this year, the solar projects installed in 10 units have resulted in savings of 1.5 crores.
To further increase the use of renewable power, your Company has installed a solar on ground For and on behalf of the Board of Directors
project with a capacity of 1.8 MW which will be operational in due course. This is expected to result in
annual savings of 2.5 crores and raise the Company’s renewable power consumption from current
67 Lakh KWH to 99 Lakh KWH. Place: Mumbai M B Parekh
Date: 17th June 2020 Executive Chairman
3. The Capital Investment on Energy Conservation Equipments:
Capital Investment in energy conservation equipment was 2.95 crores during the year.
B) Technology absorption
1. Efforts made towards technology absorption:

a. On R&D front, our focus continues to be advancing development work on various types of products
in adhesives, sealants, waterproofing products, synthetic resins, pigments, pigment dispersions,
intermediates, thickeners, dispersants, coatings and construction chemicals.
b. We work on regular basis with various technology experts and research institutes for developing
new technologies.
c. R&D reinforced the strategic initiative and action plan on safe and sustainable products and
product systems.
62

Disclosure regarding Employee Stock Option of the Company for the year ended 31st March 2020 Sr. No. Particulars Employee Stock Option Scheme-2012 Employee Stock Option Plan-2016
A. Relevant disclosures in terms of the ‘Guidance note on accounting for employee share-based payments’ (ii) Method used to account Fair value method* Fair value method*
issued by ICAI or any other relevant accounting standards as prescribed from time to time. Members may for ESOS
refer to the audited financial statement prepared as per Indian Accounting Standard (Ind-AS) for the
(iii) (a) Difference between N.A N.A
year 2019-20.
the employee
B. Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed compensation cost
in accordance with ‘Accounting Standard 20 - Earnings Per Share’ issued by ICAI or any other relevant computed as per
intrinsic value method
accounting standards as prescribed from time to time. Diluted EPS for the year ended 31st March 2020 is
and the employee
21.68 calculated in accordance with Ind-AS 33 (Earnings per Share). compensation cost as
per the fair value of the
C. Details related to Employees’ Stock option of the Company for the year ended 31st March 2020:
options
(i) (b) The impact of this N.A N.A
difference on profits
Sr. No. Particulars Employee Stock Option Scheme-2012 Employee Stock Option Plan-2016 and on EPS of the
Company
(a) Date of shareholders’ 24.07.2012 02.04.2016
*NOTE: Under IND AS, Fair value method is used for accounting.
approval
(b) Total number of options 3,00,000 45,00,000 (iv) Option movement during the year - Employee Stock Option Scheme-2012 (ESOS-2012) and Employee Stock Option
approved under ESOS Plan 2016 (ESOP – 2016)
(c) Vesting requirements (a) On completion of 50% of the Options granted under the Plan shall vest Particulars ESOS – 2012 ESOP – 2016
12 months from the options not earlier than One year but not later than a
date of Grant maximum of Six years from the date of grant Number of options outstanding at the beginning of the period Nil 3,15,750
(b) On completion of Balance 50% of of such Options. Number of options granted during the year Nil 12,500
24 months from the the options
In the case of Eligible Employee who has Number of options forfeited / lapsed during the year Nil 11,900
date of Grant
not completed 3 years of employment as
In the case of employees who have not on date of the grant of Options then the Number of options vested during the year Nil 1,55,850
completed 3 years of employment as on Options which are due for Vesting before
Number of options exercised during the year Nil 1,45,500
date of the grant then all options which are completion of 3 years as above, shall vest as
due for Vesting shall vest as per (a) and on the completion of 3 years of employment Number of shares arising as a result of exercise of options Nil 1,45,500
(b) above OR on the completion of 3 years in the Company by the Employee concerned
Money realized by exercise of options (INR) Nil 1,45,500
of employment in the Company by the or as may be approved by the Compensation
employee concerned whichever is later. Committee. Loan repaid by the Trust during the year from exercise price received N.A. N.A.
The Compensation Committee in its Number of options outstanding as on 31 March 2020

st
Nil 1,70,850
absolute discretion shall have the right to
pre-pone the date of vesting. However the Number of options exercisable as on 31st March 2020 Nil 9,650
gap between the date of Grant and date
(v) Weighted-average exercise prices and weighted-average fair values of options
of Vesting shall not be less than minimum
period prescribed by the Securities and Particulars Weighted average exercise Weighted average fair
Exchange Board of India. price per option ( ) value per option ( )
(d) Exercise price or As approved by the Shareholders in As approved by the Shareholders through
Options granted on 27.07.2015 – ESOS 2012 1 521.11
pricing formula the Annual General Meeting held on Postal Ballot which was declared on 2nd April
24th July 2012, the exercise price shall be 2016, the exercise price shall be 1/- per Options granted on 29.01.2016 – ESOS 2012 1 532.20/525.01
1/- per option. The exercise price of the option.
Options granted on 29.07.2016 – ESOS 2012 1 722.31
options granted till date is 1/- per option. The exercise price of the options granted till
date is 1/- per option. Options granted on 29.07.2016 – ESOP 2016 1 730.61
(e) Maximum term of All the options granted have been vested Out of the options granted, the last date Options granted on 09.11.2016 – ESOS 2012 1 661.86
options granted and have been exercised. No options have of vesting is 23rd January 2024. The vested
been granted in the year 2019-20. options need to be exercised within a Options granted on 08.11.2017 – ESOS 2016 1 734.15
maximum period of three years from the Options granted on 11.04.2018 – ESOP 2016 1 976.94
date of vesting of such options.
Options granted on 30.10.2018 – ESOP 2016 1 931.19/924.50
(f) Source of shares Primary Primary
(primary, secondary or Options granted on 23.01.2019 – ESOP 2016 1 1,112.48/1,127.85
combination)
Options granted on 13.05.2019 – ESOP 2016 1 1,124.69
(g) Variation in terms Not Applicable Not Applicable
of options Options granted on 23.01.2020 – ESOP 2016 1 1,449.90/1,444.56/1,433.92
64

Extract of Annual Return as on 31st March 2020 - Form no. Mgt-9
(vi) Options granted during the year (excluding lapsed options):
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014]
a) Senior managerial personnel:
I. REGISTRATION AND OTHER DETAILS:
Sr. Number of options
Name of Employee Designation i CIN L24100MH1969PLC014336
No. granted in 2019-2020
ii Registration Date 28/07/1969
1. Shri Pravin Chaudhari CEO - Special Project 4,000 iii Name of the Company Pidilite Industries Limited
2. Shri Pradip Menon Chief Financial Officer 5,000 iv Category/ Sub-Category of the Company Public Company/ Limited by Shares
v Address of the Registered office and Contact details Regent Chambers, 7th Floor, 208 Nariman Point, Mumbai 400 021.
3. Shri Hardeep Singh CEO – CC Retail 1,000 Maharashtra. Tel : 022-2835 7000 Fax: 022-2821 6007
vi Whether listed Company Yes
4. Shri Giridhar Seetharam President - Sales & Marketing – Fevicol 2,500
vii Name, Address and Contact details of Registrar and TSR Darashaw Consultants Private Limited
b) any other employee who receives a grant in any one year of option amounting to 5% or more of option granted Transfer Agent, if any 6-10, Haji Moosa Patrawala Ind. Estate, 20, Dr. E. Moses Road,
during the year 2019-2020 -Nil Mahalaxmi, Mumbai-400 011, Maharashtra.
c) identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued Tel : 022-6656 8484 Fax: 022-6656 8494
capital (excluding outstanding warrants and conversions) of the Company at the time of grant-Nil
II. Principal Business activities of the Company
(vii) A description of the method and significant assumptions used during the year to estimate the fair value of options,
All the business activities contributing 10% or more of the total turnover of the Company shall be stated
the weighted-average values of share price, the method used and the assumptions made to incorporate the effects
of expected early exercise, how expected volatility was determined, including an explanation of the extent to which Sr.
Name and Description of main products/services NIC Code of the Product/ service % to total turnover of the Company
No.
expected volatility was based on historical volatility; and whether and how any other features of the option grant
were incorporated into the measurement of fair value, such as a market condition. 1 Manufacture of Adhesives and Glues, 20295 62.57
including Rubber based Glues and Adhesives
The fair value of the option has been determined using the Black Scholes Model. The assumptions used in this
model for calculating fair value are as below: III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Please refer to “Notes to the Financial Statements – Note 46”. Sr. Name of the Company Address of the Company CIN/GLN Holding/ % of Applicable
No. Subsidiary/ Shares Section
Associate held*
1 Fevicol Company Ltd 7th Floor, Regent Chambers, U24295MH1979PLC021508 Subsidiary 100 2(87)(ii)
Jamnalal Bajaj Marg, 208
Nariman Point, Mumbai - 400 021
2 Madhumala Ventures 7th Floor, Regent Chambers, U24114MH1989PTC052007 Subsidiary 100 2(87)(ii)
Pvt Ltd (Formerly known Jamnalal Bajaj Marg, 208
as Madhumala Traders Nariman Point, Mumbai - 400 021
Pvt Ltd)
3 Bhimad Commercial 7th Floor, Regent Chambers, U24221MH1989PTC051999 Subsidiary 100 2(87)(ii)
Company Pvt Ltd Jamnalal Bajaj Marg, 208
4 Pagel Concrete 7th Floor, Regent Chambers, U26933MH1994PTC083342 Subsidiary 80 2(87)(ii)
Technologies Pvt Ltd Jamnalal Bajaj Marg, 208
5 Building Envelope 7th Floor, Regent Chambers, U24233MH2012PLC235431 Subsidiary 60 2(87)(ii)
Systems India Ltd Jamnalal Bajaj Marg, 208
6 Nina Percept Pvt Ltd # Office No. 401, A Wing, U74120MH2014PTC259216 Subsidiary 71.53 2(87)(ii)
4th Floor, Naman Midtown,
Senapati Bapat Marg, Elphinston
West, Mumbai-400 013
7 ICA Pidilite Pvt Ltd 403, 404, Satellite Silver, Andheri U24233MH2015PTC270308 Subsidiary 50 2(87)(i)
Kurla Road, Marol, Andheri East,
Mumbai-400 059
8 Cipy Poly Urethanes T-127, MIDC Industrial Area, U24219PN1994PTC083328 Subsidiary 70 2(87)(ii)
Pvt Ltd Bhosari Pune-411 026
9 Pidilite Litokol Pvt Ltd 7th Floor, Regent Chambers, U24293MH2019PTC331375 Subsidiary 60 2(87)(ii)
Jamnalal Bajaj Marg, 208
10 Pidilite C-Techos 7th Floor, Regent Chambers, U74999MH2019PTC330714 Subsidiary 60 2(87)(ii)
Pvt Ltd Jamnalal Bajaj Marg, 208

11 Pidilite Grupo Puma 7th Floor, Regent Chambers, U24299MH2019PTC330574 Subsidiary 100 2(87)(ii)
Pvt Ltd Jamnalal Bajaj Marg, 208
12 Pidilite Grupo Puma 7th Floor, Regent Chambers, U24110MH2020PLC335898 Subsidiary 50 2(87)(i)
Manufacturing Ltd Jamnalal Bajaj Marg, 208
13 Pidilite C-Techos 7th Floor, Regent Chambers, U36990MH2020PLC338594 Subsidiary 60 2(87)(ii)
Walling Ltd Jamnalal Bajaj Marg, 208
14 Nina Percept Bangladesh House No. B-101 (North), Road C-159036/2020 Subsidiary ** 2(87)(ii)
Pvt Ltd No. 07, Mohakhali, New DOHS,
Dhaka 1206, Bangladesh
66
69

Sr. Name of the Company Address of the Company CIN/GLN Holding/ % of Applicable IV. SHAREHOLDING PATTERN (Equity share capital breakup as percentage of total Equity)
No. Subsidiary/ Shares Section
i) Category-wise Share Holding
Associate held*
15 Pidilite International 9, Raffles Place, #27-00 Republic 200416836H Subsidiary 100 2(87)(ii) Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year %
(As on 01.04.2019) (As on 31.03.2020) Change
Pte Ltd Plaza, Singapore 048619 during
Demat Physical Total % of Demat Physical Total % of Total
16 Pidilite Middle East Ltd LOB16, Suit# 309, Jebel Ali Free O.F 1264 Subsidiary 100 2(87)(ii) the
Total Shares
Zone, P.O. Box 262794, Dubai, year
Shares
UAE A. Promoters
17 Pidilite MEA P. O. Box 120657, Dubai, UAE 74874 Subsidiary 49 2(87)(i)
(1) Indian
Chemicals LLC
(a) Individuals / Hindu 25,58,21,434 - 25,58,21,434 50.36 25,18,56,032 - 25,18,56,032 49.57 (0.79)
18 Pidilite Speciality House No. B-101 (North), C-60121(2129)/05 Subsidiary 100 2(87)(ii) Undivided Family
Chemicals Bangladesh Road No. 07, Mohakhali, New
(b) Central Government - - - - - - - - -
Pvt Ltd DOHS, Dhaka 1206, Bangladesh
19 Pidilite Bamco Ltd 699, Modern Form Tower, O105535098263 Subsidiary 100 2(87)(ii) (c) State Governments(s) - - - - - - - - -
15th Floor, Srinakarin Road, (d) Bodies Corporate 8,74,08,932 - 8,74,08,932 17.21 8,76,28,932 - 8,76,28,932 17.25 0.04
Pattanakam Sub-District, Suan (e) Financial Institutions / Banks - - - - - - - - -
Luang District, Bangkok 10250
(f) Any Other (Trust) 1,10,94,217 - 1,10,94,217 2.18 1,58,17,717 - 1,58,17,717 3.11 0.93
Thailand 0105535098263
Sub-Total (A) (1) 35,43,24,583 - 35,43,24,583 69.75 35,53,02,681 - 35,53,02,681 69.92 0.17
20 PT Pidilite Indonesia JL. Boulevard Artha Gading 09.01.1.24.21859 Subsidiary 100 2(87)(ii)
Komp. Artha Gading Niaga Blok (2) Foreign - - - - -
H No. 16, Kel. Kelapa Gading (a) NRI- Individuals - - - - - - - - -
Barat , KEC. Kelapa Gading, (b) Other Individuals - - - - - - - - -
Jakarta Utara 14240
(c) Bodies Corporate - - - - - - - - -
21 Pidilite USA Inc 160, Greentree Drive, Suite 101, 20-4856128 Subsidiary 100 2(87)(ii)
Dover, Kent County,Delaware (d) Bank/FI - - - - - - - - -
19904 (e) Any Other - - - - - - - - -
22 Pidilite Innovation 61 Science Park Road, 03 -11/12 200619063N Subsidiary 100 2(87)(ii) Sub-Total (A) (2) - - - - - - - - -
Centre Pte Ltd The Galen, 117525 Singapore
Total Shareholding of Promoter 35,43,24,583 - 35,43,24,583 69.75 35,53,02,681 - 35,53,02,681 69.92 0.17
23 Pidilite Industries Building No. 2002 ground 30178 Subsidiary 100 2(87)(ii) and Promoter Group (A) = (A)
Egypt SAE floor,the second neighboring in (1)+(A)(2)
Meraage City- next to Emarat- B. Public Shareholding
Misr Gas Station and Carrefour 1 Institutions
Centre in Maadi- Cairo
(a) Mutual Funds 2,32,48,673 50 2,32,48,723 4.58 1,72,32,048 50 1,72,32,098 3.39 (1.19)
24 Pulvitec do Brasil Industria City of São Paulo, State of São 08.814.961/0001-41 Subsidiary 100 2(87)(ii)
e Comercio de Colas e Paulo, Avenida Presidente Altino, (b) Financial Institutions / Banks 99,641 - 99,641 0.02 2,59,939 - 2,59,939 0.05 0.03
Adesivos Ltda No. 2468 and 2600, Jaguaré, (c) Central Government 3,15,995 - 3,15,995 0.06 2,73,247 - 2,73,247 0.05 (0.01)
Brasil, Zip Code 05323-903
(d) State Government(s) - - - - - - - - -
25 Bamco Supply and 699, Modern Form Tower, O105551044555 Subsidiary 49 2(87)(i)
(e) Venture Capital Funds - - - - - - - - -
Services Ltd 15th Floor, Srinakarin Road,
Pattanakam Sub-District, Suan (f) Insurance Companies 1,47,62,772 - 1,47,62,772 2.91 2,08,51,963 - 2,08,51,963 4.10 1.20
Luang District, Bangkok 10250 (g) Foreign Institutional Investors 58,739 - 58,739 0.01 45,332 - 45,332 0.01 -
Thailand
(h) Foreign Venture Capital - - - - - - - - -
26 PIL Trading (Egypt) Building No. 2002 ground floor, 40376 Subsidiary 99.99 2(87)(ii) Investors
Company the second neighboring in (i) Any Other
Meraage City- next to Emarat-
i Foreign Portfolio Investors 5,94,14,555 - 5,94,14,555 11.70 5,83,78,844 - 5,83,78,844 11.49 (0.21)
Misr Gas Station and Carrefour
(Corporate)
Centre in Maadi- Cairo
ii Alternate Investment Fund 10,74,184 - 10,74,184 0.21 17,88,175 - 17,88,175 0.35 0.14
27 Pidilite Industries Trading 1105, no. 8 Dong An Road, Xu Hui 91310000564784808W Subsidiary 100 2(87)(ii)
(Shanghai) Co Ltd District, Shanghai, China Sub-Total (B) (1) 9,89,74,559 50 9,89,74,609 19.48 9,88,29,548 50 9,88,29,598 19.45 (0.03)
28 Pidilite Chemical PLC Kirkos S/city, Woreda 03, H. No. EIA-IP/023369/07 Subsidiary 100 2(87)(ii) (2) Non-Institutions
269, Addis Ababa, Ethiopia (a) Bodies Corporate
29 Pidilite Lanka 74, 1/1, Orient Building, Dawson PV 106454 Subsidiary 76 2(87)(ii) i Indian 68,88,679 1,298 68,89,977 1.36 45,98,823 1,190 46,00,013 0.91 (0.45)
(Private) Limited Street, Colombo – 02
ii Overseas - - - - - - - - -
30 Nebula East Africa 1st Floor, Paresia centre, LR NO CPR/2015/205413 Subsidiary 100 2(87)(ii)
Pvt Ltd 1/548, Ngong Road.P. O. BOX (b) Individuals
6574-00100,NAIROBI i Individual shareholders 3,85,55,033 18,13,413 4,03,68,446 7.95 4,23,06,782 14,08,095 4,37,14,877 8.60 0.66
31 Nina Lanka Construction No. 116/10, Rosmead Place, PV 120223 Subsidiary *** 2(87)(ii) holding nominal share
Technologies (Pvt) Ltd Colombo 07 capital upto
1 lakh
32 Pidilite Ventures LLC 3500 S DuPont Hwy, Dover, 6915230 Subsidiary 100 2(87)(ii)
ii Individual shareholders 71,70,119 - 71,70,119 1.41 53,41,595 - 53,41,595 1.05 (0.36)
19901, USA holding nominal share
33 Pidilite East Africa Ltd Odyssey Building, Muthithi PVT-9XUL3LM Subsidiary 55 2(87)(ii) capital in excess
Road, P.O. Box 18092-00500- of 1 lakh
Enterprise Road (c) Any Other
34 Vinyl Chemicals 7th Floor, Regent Chambers, L24100MH1986PLC039837 Associate 40.64 2(6) i Trust 2,50,546 - 2,50,546 0.05 3,35,016 - 3,35,016 0.07 0.02
(India) Ltd Jamnalal Bajaj Marg, 208
Sub-Total (B) (2) 5,28,64,377 18,14,711 5,46,79,088 10.76 5,25,82,216 14,09,285 5,39,91,501 10.63 (0.14)
Total Public Shareholding (B) = (B) 15,18,38,936 18,14,761 15,36,53,697 30.25 15,14,11,764 14,09,335 15,28,21,099 30.08 (0.17)
* % of Shares held is either directly or indirectly through subsidiary(ies) of the Company (1)+(B)(2)
# Refer to Note no. 56 (c) of the consolidated financial statements C. Shares held by Custodians for - - - - - - - - -
** 99% holding by Nina Percept Pvt Ltd and 1% holding by Bangladesh Speciality Chemicals Pvt. Ltd GDRs & ADRs
*** 25.2% holding by Pidilite Lanka (Private) Limited and 74.8% holding by Nina Percept Private Limited. Grand Total (A)+(B)+(C) 50,61,63,519 18,14,761 50,79,78,280 100.00 50,67,14,445 14,09,335 50,81,23,780 100.00
68
71

(ii) Shareholding of Promoters (iii) Change In Promoters’ Shareholding
Sr. Shareholder’s Name Shareholding at the beginning of the Shareholding at the end of the % Sr. Date Reason Shareholding as on 01.04.2019 Cumulative Shareholding during 2019-20
No. year (As on 01.04.2019) year (As on 31.03.2020) change No. No. of shares % of total Shares of No. of shares % of total Shares of the
in share-
No. of % of total % of Shares No. of Shares % of total % of Shares holding the Company Company
Shares Shares Pledged/ Shares Pledged/ during At the beginning of the year 35,43,24,583 69.75
of the encumbered of the encumbered the year
Company to total Company to total 1 22.05.2019 Inter se (1,20,000) (0.02) 35,42,04,583 69.73
shares shares transfer
1 MADHUKAR BALVANTRAY PAREKH 5,27,62,286 10.39 0.00 5,20,51,286 10.24 0.00 (0.15) 2 22.05.2019 Inter se 1,20,000 0.02 35,43,24,583 69.75
2 NARENDRAKUMAR KALYANJI PAREKH 5,42,73,688 10.69 0.00 5,42,73,688 10.68 0.00 (0.01) transfer
3 AJAY BALVANTRAY PAREKH 4,74,33,489 9.34 0.00 4,74,33,489 9.34 0.00 0.00 3 27.05.2019 Inter se (1,00,000) (0.02) 35,42,24,583 69.73
4 SUSHILKUMAR KALYANJI PAREKH 4,18,17,646 8.23 0.00 4,13,97,646 8.15 0.00 (0.08) transfer
5 DEVKALYAN SALES PRIVATE LTD 2,62,24,280 5.16 0.00 2,62,24,280 5.16 0.00 0.00 4 27.05.2019 Inter se 1,00,000 0.02 35,43,24,583 69.75
transfer
6 ISHIJAS CHEMICALS PRIVATE LIMITED 2,48,62,038 4.89 0.00 2,48,62,038 4.89 0.00 0.00
7 MALA MADHUKAR PAREKH 95,98,618 1.89 0.00 95,98,618 1.89 0.00 0.00 5 27.06.2019 Gift of shares (7,11,000) (0.14) 35,36,13,583 69.61
8 HARTON PRIVATE LIMITED 1,23,57,634 2.43 0.00 1,23,57,634 2.43 0.00 0.00 6 27.06.2019 Gift of shares 7,11,000 0.14 35,43,24,583 69.75
THE VACUUM FORMING
9 1,14,62,186 2.26 0.00 1,14,62,186 2.26 0.00 0.00 7 27.06.2019 Gift of shares (40,00,000) (0.79) 35,03,24,583 68.95
COMPANY PVT LTD
10 BHARATI NARENDRAKUMAR PAREKH 57,72,323 1.14 0.00 17,72,323 0.35 0.00 (0.79) 8 27.06.2019 Gift of shares 40,00,000 0.79 35,43,24,583 69.74
11 PIDICHEM PVT LTD 83,63,916 1.65 0.00 85,83,916 1.69 0.00 0.04
9 26.07.2019 Gift of shares (500) 0.00 35,43,24,083 69.74
12 KALPANA APURVA PAREKH 99,43,079 1.96 0.00 85,77,079 1.69 0.00 (0.27)
10 26.09.2019 Market Sale (2,00,000) (0.04) 35,41,24,083 69.70
13 DARSHANA BIMAL MODY 57,41,535 1.13 0.00 57,41,535 1.13 0.00 0.00
14 AMI AJAY PAREKH 55,50,120 1.09 0.00 55,50,120 1.09 0.00 0.00 11 29.11.2019 Gift of shares (13,66,000) (0.27) 35,27,58,083 69.42
15 HIMATLAL KALYANJI PAREKH 166 0.00 0.00 0 0.00 0.00 0.00
12 29.11.2019 Gift of shares 13,66,000 0.27 35,41,24,083 69.69
16 JASNA RAOUL THACKERSEY 35,76,765 0.70 0.00 35,76,765 0.70 0.00 0.00
13 29.11.2019 ** 13,93,598 0.27 35,55,17,681 69.96
17 APURVA NARENDRAKUMAR PAREKH 30,76,918 0.61 0.00 30,76,918 0.61 0.00 0.00
18 MRUDULA SUSHILKUMAR PAREKH 15,47,527 0.30 0.00 15,47,527 0.30 0.00 0.00 14 27.12.2019 Gift of shares (1,84,500) (0.04) 35,53,33,181 69.93
19 MAITHILI PAREKH* 0 0.00 0.00 27,59,598 0.54 0.00 0.54 15 27.12.2019 Gift of shares 1,84,500 0.04 35,55,17,681 69.96
20 RASHMIKANT HIMATLAL PAREKH 37,16,904 0.73 0.00 34,32,570 0.68 0.00 (0.05)
16 05.02.2020 Market Sale (1,00,000) (0.02) 35,54,17,681 69.95
21 HARISH HIMATLAL PAREKH 34,38,443 0.68 0.00 33,38,443 0.66 0.00 (0.02)
22 AMRITA AJAY PAREKH 19,47,130 0.38 0.00 19,47,130 0.38 0.00 0.00 17 05.02.2020 Market Sale (1,00,000) (0.02) 35,53,17,681 69.93
KALVA MARKETING AND 18 12.02.2020 Market Sale (15,000) 0.00 35,53,02,681 69.92
23 13,82,628 0.27 0.00 13,82,628 0.27 0.00 0.00
SERVICES LTD
24 PARKEM DYES & CHEMICALS PVT LTD 14,36,510 0.28 0.00 14,36,510 0.28 0.00 0.00 19 26.02.2020 Gift of shares (1,00,000) (0.02) 35,52,02,681 69.90
25 PARUL HARISH PAREKH 14,45,074 0.28 0.00 14,45,074 0.28 0.00 0.00 20 26.02.2020 Gift of shares 1,00,000 0.02 35,53,02,681 69.92
26 KAMALINI RASHMIKANT PAREKH 10,56,055 0.21 0.00 11,06,055 0.22 0.00 0.01
At the end of the year 35,53,02,681 69.92
27 PURVEE APURVA PAREKH 7,93,299 0.16 0.00 7,93,299 0.16 0.00 0.00
28 PAREKH MARKETING LIMITED 8,56,700 0.17 0.00 8,56,700 0.17 0.00 0.00 **Ms. Maithili Parekh was added to the promoter group as she received 13,66,000 shares by way of gift from Ms. Kalpana Parekh (Promoter Group).
29 TRIVENIKALYAN TRADING PVT LTD 4,63,040 0.09 0.00 4,63,040 0.09 0.00 0.00 13,93,598 shares were already held by Ms. Maithili Parekh before transfer of shares by way of Gift.
30 ANUJA ANKUR SHAH 1,87,670 0.04 0.00 2,48,670 0.05 0.00 0.01
31 MALAY RASHMIKANT PAREKH 4,01,286 0.08 0.00 4,51,286 0.09 0.00 0.01
32 PAREET D SANGHAVI 0 0.00 0.00 0 0.00 0.00 0.00
33 JIMEET D SANGHAVI 0 0.00 0.00 1,00,000 0.02 0.00 0.02
34 PANNA DEEPAK SANGHAVI 8,54,891 0.17 0.00 7,39,891 0.15 0.00 (0.02)
35 HARSHADA HARVADAN VAKIL 8,04,929 0.16 0.00 8,04,929 0.16 0.00 0.00
36 HARVADAN 41,930 0.01 0.00 41,430 0.01 0.00 0.00
37 URVI MALAY PAREKH 39,663 0.01 0.00 50,663 0.01 0.00 0.00
PRAKASH SHAH TRUSTEE OF SANMP
38 82,00,000 1.61 0.00 82,00,000 1.61 0.00 0.00

PRIVATE BENEFICIARY TRUST
PRAKASH DHARSHIBHAI SHAH
39 28,69,217 0.56 0.00 35,80,217 0.70 0.00 0.14
TRUSTEE OF I M FAMILY TRUST
MALAY RASHMIKANT PAREKH
40 12,500 0.00 0.00 12,500 0.00 0.00 0.00
TRUSTEE OF MALAY FAMILY TRUST
MALAY RASHMIKANT PAREKH
41 12,500 0.00 0.00 25,000 0.00 0.00 0.00
TRUSTEE OF ANUJA FAMILY TRUST
APURVA PAREKH –
42 0 0.00 0.00 40,00,000 0.79 0.00 0.79
TRUSTEE OF NKP FAMILY TRUST
35,43,24,583 69.75 0.00 35,53,02,681 69.92 0.00 0.17
*Ms. Maithili Parekh was added to the promoter group as she received 13,66,000 shares by way of gift from Ms. Kalpana Parekh (Promoter Group).
70 13,93,598 shares were already held by Ms. Maithili Parekh before transfer of shares by way of Gift.
73

(iv) Shareholding Pattern of top 10 shareholders Sr. Shareholder’s Name No. of shares at % of total Date Increase/ Reason Cumulative % of total
(Other than Directors, Promoters and Holders of GDRs and ADRs) No. the beginning shares (Decrease) in Shares shares of the
of the year of the shareholding during the Company
Sr. Shareholder’s Name No. of shares at % of total Date Increase/ Reason Cumulative % of total
(01.04.2019)/ Company year during
No. the beginning shares (Decrease) in Shares shares of the
end of the year the year
of the year of the shareholding during the Company
(31.03.2020)
(01.04.2019)/ Company year during
end of the year the year 2 Axis Mutual Fund 1,70,86,499 2.69 01.04.2019
(31.03.2020) Trustee Limited 05.04.2019 (59,428) Transfer 1,70,27,071 3.35
1 Life Insurance 1,25,23,859 2.47 01.04.2019 19.04.2019 (1,20,000) Transfer 1,69,07,071 3.33
Corporation of India
24.05.2019 24,954 Transfer 1,25,48,813 2.47 26.04.2019 (3,35,500) Transfer 1,65,71,571 3.26
03.05.2019 (3,59,585) Transfer 1,62,11,986 3.19
31.05.2019 3,85,295 Transfer 1,29,34,108 2.55
10.05.2019 (90,199) Transfer 1,61,21,787 3.17
14.06.2019 1,47,000 Transfer 1,30,81,108 2.57
17.05.2019 59,838 Transfer 1,61,81,625 3.19
21.06.2019 13,47,721 Transfer 1,44,28,829 2.84 24.05.2019 11 Transfer 1,61,81,636 3.19
28.06.2019 5,50,515 Transfer 1,49,79,344 2.95 31.05.2019 1,73,959 Transfer 1,63,55,595 3.22
28.06.2019 (63,756) Transfer 1,65,91,839 3.27
12.07.2019 85,424 Transfer 1,56,01,205 3.07
05.07.2019 (2,50,000) Transfer 1,63,41,839 3.22
19.07.2019 1,67,656 Transfer 1,57,68,861 3.10
12.07.2019 (4,34,000) Transfer 1,59,07,839 3.13
26.07.2019 4,02,522 Transfer 1,61,71,383 3.18 19.07.2019 (47,500) Transfer 1,58,60,339 3.12
06.08.2019 53,000 Transfer 1,61,95,347 3.19
06.08.2019 1,48,861 Transfer 1,66,41,316 3.28
09.08.2019 3,28,888 Transfer 1,65,24,235 3.25
09.08.2019 1,900 Transfer 1,66,43,216 3.28
23.08.2019 1,27,819 Transfer 1,66,52,054 3.28
06.12.2019 66,931 Transfer 1,67,10,147 3.29 30.08.2019 22,000 Transfer 1,66,74,054 3.28
20.12.2019 84,230 Transfer 1,69,22,077 3.33 13.09.2019 (3,176) Transfer 1,66,43,572 3.28
20.09.2019 (5,955) Transfer 1,66,37,617 3.28
31.12.2019 94,934 Transfer 1,70,17,011 3.35
27.09.2019 3,15,740 Transfer 1,69,53,357 3.34
03.01.2020 1,52,945 Transfer 1,71,69,956 3.38
11.10.2019 (6,64,512) Transfer 1,62,88,845 3.21
10.01.2020 3,15,996 Transfer 1,74,85,952 3.44 18.10.2019 (8,75,115) Transfer 1,54,13,730 3.03
17.01.2020 94,261 Transfer 1,75,80,213 3.46 25.10.2019 (10,93,105) Transfer 1,43,20,625 2.82
24.01.2020 2,13,025 Transfer 1,77,93,238 3.50 01.11.2019 (6,48,213) Transfer 1,36,72,412 2.69
08.11.2019 (1,48,858) Transfer 1,35,23,554 2.66
31.01.2020 14,361 Transfer 1,78,07,599 3.50
15.11.2019 (2,55,553) Transfer 1,32,68,001 2.61
14.02.2020 (1,05,777) Transfer 1,77,01,822 3.48 22.11.2019 (81,281) Transfer 1,31,86,720 2.60
21.02.2020 (2,45,714) Transfer 1,74,56,108 3.44 29.11.2019 (88,652) Transfer 1,30,98,068 2.58
28.02.2020 (3,35,890) Transfer 1,71,20,218 3.37 06.12.2019 (1,26,131) Transfer 1,29,71,937 2.55
13.12.2019 (425) Transfer 1,29,71,512 2.55
1,71,20,218 3.37 31.03.2020
20.12.2019 (1,00,373) Transfer 1,28,71,139 2.53
27.12.2019 (50) Transfer 1,28,71,089 2.53
03.01.2020 (14,721) Transfer 1,28,56,368 2.53
10.01.2020 (4,000) Transfer 1,28,52,368 2.53
17.01.2020 (114) Transfer 1,28,52,254 2.53
24.01.2020 1,99,899 Transfer 1,30,52,153 2.57
31.01.2020 3,88,026 Transfer 1,34,40,179 2.65
07.02.2020 60,990 Transfer 1,35,01,169 2.66

14.02.2020 49,153 Transfer 1,35,50,322 2.67
21.02.2020 79,728 Transfer 1,36,30,050 2.68
28.02.2020 (4,000) Transfer 1,36,26,050 2.68
06.03.2020 (5,15,537) Transfer 1,31,10,513 2.58
13.03.2020 (5,09,467) Transfer 1,26,01,046 2.48
16.03.2020 (10,00,000) Transfer 1,16,01,046 2.28
20.03.2020 64,801 Transfer 1,16,65,847 2.30
27.03.2020 1,00,444 Transfer 1,17,66,291 2.32
31.03.2020 178 Transfer 1,17,66,469 2.32
72 1,17,66,469 2.32 31.03.2020

75

Sr. Shareholder’s Name No. of shares at % of total Date Increase/ Reason Cumulative % of total Sr. Shareholder’s Name No. of shares at % of total Date Increase/ Reason Cumulative % of total
No. the beginning shares (Decrease) in Shares shares of the No. the beginning shares (Decrease) in Shares shares of the
of the year of the shareholding during the Company of the year of the shareholding during the Company
(01.04.2019)/ Company year during (01.04.2019)/ Company year during
end of the year the year end of the year the year
(31.03.2020) (31.03.2020)
3 First State Investments - - 01.04.2019 6 Uti-Unit Linked 19,41,736 0.38 01.04.2019
Icvc- Stewart Investors Insurance Plan 05.04.2019 29 Transfer 1941765 0.38
Asia Pacific Leaders 27.12.2019 5,97,543 Transfer 5,97,543 0.12
12.04.2019 (7,534) Transfer 19,34,231 0.38
Fund 31.12.2019 1,63,469 Transfer 7,61,012 0.15 19.04.2019 979 Transfer 19,35,210 0.38
26.04.2019 2,659 Transfer 19,37,869 0.38
10.01.2020 3,81,747 Transfer 11,42,759 0.22
03.05.2019 252 Transfer 19,38,121 0.38
06.03.2020 4,34,104 Transfer 15,76,863 0.31 10.05.2019 (15,572) Transfer 19,22,549 0.38
13.03.2020 23,386 Transfer 16,00,249 0.31 17.05.2019 3,813 Transfer 19,26,362 0.38
24.05.2019 4,680 Transfer 19,31,042 0.38
20.03.2020 22,37,233 Transfer 38,37,482 0.76 31.05.2019 2,451 Transfer 19,33,493 0.38
38,37,482 0.76 31.03.2020 07.06.2019 5,572 Transfer 19,39,065 0.38
4 Government Pension 14.06.2019 4,082 Transfer 19,43,147 0.38
49,76,332 0.87 01.04.2019
Fund Global 21.06.2019 4,903 Transfer 19,48,050 0.38
12.07.2019 24,842 Transfer 19,81,650 0.39
07.06.2019 (4,00,000) Transfer 46,82,918 0.92 26.07.2019 10,096 Transfer 19,93,702 0.39
30.07.2019 1,562 Transfer 19,95,264 0.39
14.06.2019 (4,97,914) Transfer 41,85,004 0.82
02.08.2019 1,348 Transfer 19,96,612 0.39
19.07.2019 (25,904) Transfer 40,57,014 0.80 09.08.2019 3,701 Transfer 20,01,979 0.39
16.08.2019 (1,689) Transfer 20,00,290 0.39
35,82,918 0.71 31.03.2020 30.08.2019 4,856 Transfer 20,11,321 0.40
06.09.2019 10,293 Transfer 20,21,614 0.40
5 Vanguard Total 19,03,010 0.37 01.04.2019
International Stock 13.09.2019 2,335 Transfer 20,23,949 0.40
Index Fund 26.04.2019 (39,605) Transfer 18,63,405 0.37 20.09.2019 2,679 Transfer 20,26,628 0.40
27.09.2019 14,960 Transfer 20,41,588 0.40
03.05.2019 13,240 Transfer 18,76,645 0.37
30.09.2019 2,898 Transfer 20,44,486 0.40
05.07.2019 37,492 Transfer 19,58,319 0.39 11.10.2019 1,12,168 Transfer 21,58,430 0.42
18.10.2019 947 Transfer 21,59,377 0.43
23.08.2019 68,358 Transfer 20,26,677 0.40 25.10.2019 447 Transfer 21,59,824 0.43
08.11.2019 (8,597) Transfer 21,60,993 0.43
10.01.2020 34,647 Transfer 20,01,053 0.39
15.11.2019 (66,799) Transfer 20,94,194 0.41
14.02.2020 20,994 Transfer 20,22,047 0.40 22.11.2019 (24,186) Transfer 20,70,008 0.41
06.12.2019 962 Transfer 20,86,964 0.41
13.03.2020 17,841 Transfer 20,81,720 0.41 20.12.2019 (23,924) Transfer 20,64,021 0.41
27.12.2019 (5,363) Transfer 20,58,658 0.41
16.03.2020 18,076 Transfer 20,99,796 0.41
31.12.2019 (270) Transfer 20,58,388 0.41
10.01.2020 (11,908) Transfer 20,46,822 0.40
27.03.2020 36,308 Transfer 21,73,546 0.43
17.01.2020 35,392 Transfer 20,82,214 0.41
21,73,546 0.43 31.03.2020
24.01.2020 684 Transfer 20,82,898 0.41

31.01.2020 (20,454) Transfer 20,62,444 0.41
07.02.2020 48,300 Transfer 21,10,744 0.42
14.02.2020 285 Transfer 21,11,029 0.42
21.02.2020 399 Transfer 21,11,428 0.42
28.02.2020 1,261 Transfer 21,12,689 0.42
06.03.2020 1,909 Transfer 21,14,598 0.42
13.03.2020 4,030 Transfer 21,18,628 0.42
16.03.2020 955 Transfer 21,19,583 0.42
20.03.2020 3,205 Transfer 21,22,788 0.42
27.03.2020 16,434 Transfer 21,39,222 0.42
31.03.2020 495 Transfer 21,39,717 0.42
74 21,39,717 0.42 31.03.2020
77

Sr. Shareholder’s Name No. of shares at % of total Date Increase/ Reason Cumulative % of total Sr. Shareholder’s Name No. of shares at % of total Date Increase/ Reason Cumulative % of total
No. the beginning shares (Decrease) in Shares shares of the No. the beginning shares (Decrease) in Shares shares of the
of the year of the shareholding during the Company of the year of the shareholding during the Company
(01.04.2019)/ Company year during (01.04.2019)/ Company year during
end of the year the year end of the year the year
(31.03.2020) (31.03.2020)
7 The Genesis Group 30,42,373 0.60 01.04.2019 9 Government Of 17,30,940 0.34 01.04.2019
Trust For Employee Singapore 05.04.2019 21,247 Transfer 17,52,187 0.34
Benefit Plans 05.04.2019 33,791 Transfer 30,76,164 0.61
12.04.2019 (49) Transfer 17,52,138 0.34
24.05.2019 (1,19,681) Transfer 29,56,483 0.58
03.05.2019 (8,441) Transfer 17,43,697 0.34
31.05.2019 (1,79,441) Transfer 27,77,042 0.55 10.05.2019 (24,357) Transfer 17,19,340 0.34
19.07.2019 (56,948) Transfer 27,20,094 0.54 17.05.2019 (1,698) Transfer 17,17,642 0.34
24.05.2019 12,588 Transfer 17,30,230 0.34
26.07.2019 (24,273) Transfer 26,95,821 0.53
31.05.2019 (21,140) Transfer 17,09,090 0.34
13.09.2019 (38,260) Transfer 26,57,561 0.52
07.06.2019 1,69,900 Transfer 18,78,990 0.37
05.07.2019 6,690 Transfer 19,26,863 0.38
04.10.2019 (1,09,633) Transfer 23,92,005 0.47
12.07.2019 (115) Transfer 19,26,748 0.38
01.11.2019 (29,676) Transfer 23,62,329 0.46
19.07.2019 (4,283) Transfer 19,22,465 0.38
09.08.2019 (13,678) Transfer 18,93,905 0.37
06.12.2019 (3,803) Transfer 23,30,650 0.46
16.08.2019 (5,438) Transfer 18,88,467 0.37
10.01.2020 (50,235) Transfer 22,80,415 0.45
23.08.2019 (9,535) Transfer 18,78,932 0.37
24.01.2020 (72,600) Transfer 21,40,583 0.42 06.09.2019 (71) Transfer 18,67,079 0.37
13.09.2019 3,762 Transfer 18,70,841 0.37
31.01.2020 (71,857) Transfer 20,68,726 0.41
20.09.2019 3,697 Transfer 18,74,538 0.37
06.03.2020 (4,526) Transfer 20,64,200 0.41
30.09.2019 (1,033) Transfer 18,73,505 0.37
20,64,200 0.41 31.03.2020 04.10.2019 16,984 Transfer 18,90,489 0.37
8 Vanguard Emerging 20,18,449 0.40 01.04.2019 11.10.2019 (840) Transfer 18,89,649 0.37
Markets Stock Index 18.10.2019 6,050 Transfer 18,95,699 0.37
Fund, A Series Of 12.04.2019 4,347 Transfer 20,22,796 0.40
25.10.2019 (8,146) Transfer 18,87,553 0.37
Vanguard International 10.05.2019 4,536 Transfer 20,27,332 0.40
Equity Index Funds 01.11.2019 73 Transfer 18,87,626 0.37
22.11.2019 15,108 Transfer 19,06,873 0.38
27.09.2019 (47,811) Transfer 19,09,883 0.38
29.11.2019 1,03,601 Transfer 20,10,474 0.40
27.12.2019 (68,005) Transfer 18,41,878 0.36
06.12.2019 (88,879) Transfer 19,21,595 0.38
27.03.2020 (5,090) Transfer 18,36,788 0.36 13.12.2019 (558) Transfer 19,21,037 0.38
18,36,788 0.36 31.03.2020 20.12.2019 12,185 Transfer 19,33,222 0.38
31.12.2019 (4,143) Transfer 19,29,079 0.38
03.01.2020 (20,262) Transfer 19,08,817 0.38
10.01.2020 (13,732) Transfer 18,95,085 0.37
17.01.2020 (17,194) Transfer 18,77,891 0.37
24.01.2020 (15,121) Transfer 18,62,770 0.37
31.01.2020 (8,780) Transfer 18,53,990 0.36
07.02.2020 (61,153) Transfer 17,92,837 0.35

14.02.2020 (603) Transfer 17,92,234 0.35
21.02.2020 (1,041) Transfer 17,91,193 0.35
28.02.2020 (1,253) Transfer 17,89,940 0.35
06.03.2020 21,928 Transfer 18,11,868 0.36
13.03.2020 (10,513) Transfer 18,01,355 0.35
16.03.2020 (1,185) Transfer 18,00,170 0.35
20.03.2020 (5,347) Transfer 17,94,823 0.35
27.03.2020 (1,56,341) Transfer 16,38,482 0.32
31.03.2020 (10,246) Transfer 16,28,236 0.32
16,28,236 0.32 31.03.2020
76
79

Sr. Shareholder’s Name No. of shares at % of total Date Increase/ Reason Cumulative % of total (v) Shareholding of Directors and Key Managerial Personnel:
No. the beginning shares (Decrease) in Shares shares of the
Sr. Name Shareholding Date Increase/ Reason Cumulative
of the year of the shareholding during the Company No. (Decrease) in Shareholding during
(01.04.2019)/ Company year during shareholding the year
end of the year the year (01.04.2019 to
31.03.2020)
(31.03.2020)
No. of Shares at % of total No. of shares % of total
10 Stichting Depositary 18,16,595 0.36 01.04.2019 the beginning Shares Shares
Apg Emerging Markets of the year of the of the
Equity Pool 24.05.209 (81,632) Transfer 17,34,963 0.34 (01.04.2019). Company Company
end of the year
31.05.2019 (1,22,395) Transfer 16,12,568 0.32 (31.03.2020)
12.07.2019 5,845 Transfer 16,18,413 0.32 Shareholding of Directors:
19.07.2019 (14,566) Transfer 16,03,847 0.32 1 M B Parekh 5,27,62,286 10.39 01.04.2019 5,27,62,286 10.39
(7,11,000)# 5,20,51,286 10.25
26.07.2019 (13,739) Transfer 15,90,108 0.31
5,20,51,286 10.39 31.03.2020
30.07.2019 (45,466) Transfer 15,44,642 0.30
2 N K Parekh 5,42,73,688 10.69 01.04.2019 NIL movement during the year 5,42,73,688 10.69
02.08.2019 (23,515) Transfer 15,21,127 0.30
5,42,73,688 10.69 31.03.2020
30.08.2019 921 Transfer 15,22,048 0.30
3 A B Parekh 4,74,33,489 9.34 01.04.2019 NIL movement during the year 4,74,33,489 9.34
13.09.2019 (21,188) Transfer 15,00,860 0.30
4,74,33,489 9.34 31.03.2020
20.09.2019 (30,243) Transfer 14,70,617 0.29
4 B S Mehta 24,716 0 01.04.2019 NIL movement during the year 24,716 0.00
27.09.2019 (56,103) Transfer 14,14,514 0.28 24,716 0 31.03.2020
01.11.2019 (40,779) Transfer 13,73,735 0.27 5 A N Parekh 30,76,918 0.61 01.04.2019 NIL movement during the year 30,76,918 0.61
08.11.2019 47,825 Transfer 14,21,560 0.28 30,76,918 0.61 31.03.2020
13.12.2019 (41,028) Transfer 13,80,532 0.27 6 Bharat Puri 2,00,000 0.04 01.04.2019 2,00,000 0.04
(also Key Managerial
20.12.2019 1,05,519 Transfer 14,86,051 0.29 Personnel) 19.03.2020 1,10,000* 3,10,000
3,10,000 0.06 31.03.2020
27.12.2019 24,076 Transfer 15,10,127 0.30
7 Sanjeev Aga 798 0 01.04.2019 NIL movement during the year 798 0
10.01.2020 (48,385) Transfer 14,61,742 0.29
798 0 31.03.2020
17.01.2020 (39,196) Transfer 14,22,546 0.28
8 Uday Khanna 5,000 0 01.04.2019 NIL movement during the year 5,000 0
24.01.2020 (50,332) Transfer 13,72,214 0.27
5,000 0 31.03.2020
31.01.2020 (81,746) Transfer 12,90,468 0.25
9 Meera Shankar 0 0 01.04.2019 NIL movement during the year 0 0
06.03.2020 63,393 Transfer 13,53,861 0.27
0 0 31.03.2020
13.03.2020 38,003 Transfer 13,91,864 0.27 10 Sabyaschi Patnaik 5,100 0 01.04.2019 5,100 0
(upto 29.02.2020)
31.03.2020 15,051 Transfer 14,06,915 0.28 19.03.2020 2,650* 7,750
14,06,915 0.28 31.03.2020 7,750 0 31.03.2020
11 Vinod Kumar Dasari 0 0 01.04.2019 NIL movement during the year 0 0
0 0 31.03.2020
12 Piyush Pandey 0 0 01.04.2019 NIL movement during the year 0 0
0 0 31.03.2020
13 Debabrata Gupta 0 0 01.03.2020 NIL movement during the period 0 0
(w.e.f. 01.03.2020)
0 0 31.03.2020
Shareholding of Key Managerial Personnel :
1 Puneet Bansal 100 0 01.04.2019 NIL movement during the year 100 0
100 0 31.03.2020
2 Pradip Menon 0 0 18.11.2019 NIL movement during the period 100 0

(w.e.f. 18.11.2019)
0 0 31.03.2020
3 P Ganesh 50 0 01.04.2019 NIL movement during the period 50 0
(upto 24.05.2019)
50 0 24.05.2019
#Gift of Shares
*Shares alloted during the year under ESOP-2016
78
81

(Amount in )
( in crores) VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-
A. Remuneration to Managing Director, Whole Time Directors and/or Manager:

V. Indebtedness
Sr. Particulars of Remuneration Name of MD/WTD/ Manager Total
Indebtedness of the Company including interest outstanding /accrued but not due for payment No.
M B Parekh Bharat Puri A B Parekh A N Parekh Sabyaschi Debabrata
(Executive (Managing (Whole Time (Whole Time Patnaik ^ Gupta $
Particulars Secured Loans Unsecured Loans Deposits Total Chairman) Director) Director) Director) (Whole Time (Whole Time
(Excluding deposits) Indebtedness Director) Director)
1 Gross salary
Indebtedness at the beginning of the financial year
(a) Salary as per provisions 2,99,63,746 10,04,74,114 1,39,43,000 1,13,14,927 2,12,14,857 15,26,750 17,84,37,394
(as on 01.04.2019) contained in Section 17(1) of the
Income-tax Act, 1961
i. Principal Amount - - - -
(b) Value of perquisites u/s 17(2) 83,40,023 6,12,456 25,29,856 23,76,160 - - 1,38,58,495
ii. Interest due but not paid - - - - of the Income-tax Act, 1961
(c) Profits in lieu of salary under - - - - 1,53,462 - 1,53,462
iii. Interest accrued but not due - - - - Section 17(3) of the Income-tax
Act, 1961
Total (i+ii+iii) - - - - 2 Stock option* - 16,65,45,500 - - 40,37,805 - 17,05,83,305
Change in Indebtedness during the financial year 3 Sweat Equity - - - - - - -
4 Commission #
Addition - - - - - as % of profit - 3,47,50,000 4,86,50,000 4,17,00,000 - - 12,51,00,000
- others - - - - - - -
Reduction - - - -
5 Others: Employer contribution to 31,73,181 1,67,17,740 15,09,933 13,35,269 14,64,862 3,13,395 2,45,14,380
(Repayment) provident and other funds
Net Change - - - - Total (A) 4,14,76,950 31,90,99,810 6,66,32,789 5,67,26,356 2,68,70,986 18,40,145 51,26,47,036
Indebtedness at the end of the financial year ( as on Ceiling as per the Act Remuneration paid is within the ceiling limits calculated as per Section 198 of the Companies Act 2013
31.03.2020) * Represents options which have vested and exercised
# Commission for the financial year 2018-19 paid in 2019-20
i. Principal Amount - - - -
^ Ceased to be a Director w.e.f. end of business hours of 29th February 2020
ii. Interest due but not paid - - - - $ Appointed w.e.f. 1st March 2020 (Amount in )
B. Remuneration to other Directors:
iii. Interest accrued but not due - - - -
1 Independent Directors:
Total (i+ii+iii) - - - - Name of Director Fee for attending Commission# Others Total
Board/Committee
meetings
Shri B S Mehta 3,90,000 20,00,000 - 23,90,000
Shri Sanjeev Aga 5,22,000 20,00,000 - 25,22,000
Shri Uday Khanna 3,60,000 20,00,000 - 23,60,000
Smt. Meera Shankar 2,10,000 20,00,000 - 22,10,000
Shri Vinod Kumar Dasari 2,10,000 20,00,000 - 22,10,000
Shri Piyush Pandey 1,80,000 20,00,000 - 21,80,000
Total (1) 1,38,72,000
2 Non-Executive/Promoter Director:
Shri N K Parekh 7,50,000 20,00,000 - 27,50,000
(Non Executive Vice Chairman)
Total (2) - 27,50,000
Total (B) (1+2) 1,66,22,000
# Commission for the financial year 2018-19 paid in 2019-20

(Amount in )
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD:
Sr. Particulars of Remuneration Key Managerial Personnel Total
No. P Ganesh* Pradip Menon**
Puneet Bansal
Chief Financial Chief Financial
Company Secretary
Officer Officer
1 Gross salary
(a) Salary as per provisions contained in Section 17(1)
23,48,665 94,81,250 1,04,46,499 2,22,76,414
of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961 - - - -
(c) Profits in lieu of salary under Section 17(3) of the

- - - -
Income- tax Act, 1961
2 Stock option - *** *** -
3 Sweat Equity - - - -
4 Commission - - - -
- as % of profit
- others
5 Others: Employer contribution to provident and
4,25,932 6,96,583 8,00,600 19,23,115
other funds
Total (C) 27,74,597 1,01,77,833 1,12,47,099 2,41,99,529
*upto 24.05.2019 ** w.e.f. 18.11.2019 ***Options granted have not yet vested
VII. Penalties / Punishment / Compounding of Offences
80 There were no penalties, punishment, compounding of offences for the year ending 31st March 2020.
Annexure 6 to the Directors’ Report Dividend Distribution Policy 83

Information required under Section 197 of the Companies Act, 2013 read with Companies (Appointment and 1. Applicability and Objective:
Remuneration of Managerial Personnel) Rules, 2014
The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Regulations”) require the
A. Ratio of remuneration paid to each Director to the median remuneration of the employees of the top 500 listed companies (by market capitalisation) to disclose a Dividend Distribution Policy (“the Policy”)
Company and percentage increase in remuneration for the financial year 2019-20 is as follows: in the annual report and on their website.
Sr. Name of Director Designation Ratio of remuneration % increase The Board of Directors (“Board”) of Pidilite Industries Limited has adopted this Dividend Distribution Policy
No. of Director to the to comply with these Regulations.
Median remuneration
The objective of the Policy is to lay down the parameters that are required to be considered by the Board of
1 Shri M B Parekh Executive Chairman 74.07 4.12% the Company for declaration of Dividend from time to time.
2 Shri N K Parekh Vice Chairman 4.91 (3.17%)
2. Scope:
3 Shri Bharat Puri Managing Director 569.82 23.30%
4 Shri A B Parekh Whole time Director 118.99 3.73% The Company currently has only one class of shares i.e. equity, for which the Policy is applicable. The Policy
is subject to review if and when the Company issues different classes of shares.
5 Shri A N Parekh Whole time Director 101.30 4.46%
6 Shri B S Mehta Director 4.27 (5.91%) 3. Dividend:
7 Shri Sanjeev Aga Director 4.50 2.44% Dividend represents the profit of the Company, which is distributed to the shareholders in proportion to the
8 Shri Uday Khanna Director 4.21 (2.48%) amount paid-up on the equity shares held by them. The term ‘Dividend’ includes Interim Dividend.
9 Smt Meera Shankar Director 3.95 (1.34%)
4. Parameters and factors for declaration of dividend:
10 Shri Sabyaschi Patnaik * Whole time Director 47.98 3.11%
The Company shall ensure compliance of the provisions of Companies Act, 2013 (“the Act”) read with the
11 Shri Vinod Kumar Dasari Director 3.95 1.38% Rules and the following financial parameters and internal and external factors shall also be considered:-
12 Shri Piyush Pandey Director 3.89 2.84%
Financial Parameters and Internal Factors:
13 Shri Debabrata Gupta Whole time Director - ~
i. Distributable Surplus available as per relevant statutory regulations
B. Percentage increase in remuneration of Company Secretary and Chief Financial Officer for the financial
year 2019-20 is as follows: ii. Past dividend payout trends of the Company
Sr. Name Designation % increase

iii. Working capital requirements
No. iv. Business expansion and growth
1 Shri P. Ganesh Chief Financial Officer ^
v. Company’s liquidity position and future cash flow requirements
2 Shri Pradip Menon Chief Financial Officer ^
vi. Additional investments in subsidiaries and associates of the Company
3 Shri Puneet Bansal Company Secretary #
Notes:
vii. Current year’s profits and future outlook in light of the development of internal and external
1. The aforesaid details are calculated on the basis of remuneration paid during the financial year 2019-20. environment
2. The remuneration to Non Executive Directors comprises of sitting fees and commission paid to them during the financial year 2019-20.
viii. Prevailing Taxation Policy or any amendments expected thereof, with respect to Dividend distribution
3. The median remuneration is 5,60,004/- for the financial year 2019-20.
4. * Shri Sabyaschi Patnaik was the Whole Time Director of the Company upto 29th February 2020. ix. Operating cash flows and treasury position keeping in view the total debt to equity ratio
5. ~ % increase in remuneration is not given as Shri Debabrata Gupta was appointed as the Whole Time Director of the Company
w.e.f. 1st March 2020. x. Possibilities of alternate usage of cash, e.g. capital expenditure etc., with potential to create greater
6. ^ % increase in remuneration is not given as the payment for the financial year 2019-20 was only for part of the year. value for shareholders
7. # % increase in remuneration is not given as the payment for financial year 2018-19 was only for part of the year.
xi. Providing for unforeseen events and contingencies with financial implications
8. The remuneration to Directors is within the overall limits approved by the shareholders.
xii. Such other factors and/ or material events which the Company’s Board may consider
C. Percentage increase in the median remuneration of employee in the financial year 2019-20: 7.60%
External Factors:
D. Number of permanent employees on the rolls of the Company as on 31st March 2020: 6,064
i. Economic environment
E. Average percentage increase already made in the salaries of employees other than the managerial
personnel in the last financial year and its comparison with the percentage increase in the managerial ii. Capital markets
remuneration and justification thereof and point out if there are any exceptional circumstances for iii. Inorganic growth plans
increase in the managerial remuneration:
iv. Statutory provisions and guidelines
Increase in remuneration is based on Remuneration Policy of the Company.
v. Dividend pay-out ratios across industries
Average increase in salary of all employees in 2019-20 compared to 2018-19: 11.38%
5. Circumstances under which the shareholders of the Company may or may not expect dividend:
F. Affirmation:
The Board will assess the Company’s financial requirements, including present and future organic and
Pursuant to Rule 5(1)(xii) of the Companies (Appointment and Remuneration of Managerial Personnel) inorganic growth opportunities and other relevant factors (as mentioned in this policy) and declare
Rules, 2014, it is affirmed that the remuneration paid to the Directors, Key Managerial Personnel and senior Dividend in any financial year.
82 Management is as per the Remuneration Policy of the Company.
Remuneration Policy 85

The Board may not recommend any dividend if the Board is of the considered opinion that it is prudent to A. Remuneration Policy for Executive Directors
conserve capital based on the factors outlined above or other exigencies.
a) The remuneration paid to the Executive Directors of the Company is approved by the Board of
6. Utilization of retained earnings: Directors on the recommendations of the Nomination and Remuneration Committee.
b) Remuneration of the Executive Chairman, Managing Director and Executive Directors consist of a fixed
The Company would utilize the retained earnings in a manner which is beneficial to the interest of the
component and commission based on the net profits of each financial year. The commission amount
Company and its stakeholders, including, but not limited to meeting the Company’s future business
is linked to the Net profit of each year. The increase in fixed salary is recommended by the Nomination
growth/ expansion and strategic plans or such other purpose the Board may deem fit from time to time.
and Remuneration Committee based on the general industry practice and the increase given to other
7. Conflict in Policy: managers in the Company.
In the event of a conflict between this policy and the statutory provisions, the statutory provisions B. Remuneration Policy for Non-Executive Directors
shall prevail. Non-Executive Directors of a Company’s Board of Directors add substantial value to the Company through their
contribution to the Management of the Company. In addition they also play an appropriate control role. For best
8. Modification of the Policy:
utilizing the Non-Executive Directors, the Company has constituted certain Committees of the Board.
The Board is authorised to change or amend this policy from time to time at its sole discretion and/or Remuneration payable:
in pursuance of any amendments made in the Act, the Regulations, or any other applicable law.
Sr.
The modifications, if any, made to the policy shall be disclosed on the website and in the Annual Report. No.
Particulars Remuneration* Remarks
9. Review of the Policy: 1 Commission 20,00,000 per annum a) On the basis of Company’s Performance and
per Director at a rate not exceeding 1% per annum of the
The Board may review the Dividend Distribution Policy of the Company as appropriate. profits of the Company distributed uniformly
among the Directors.
10. Disclosure of Policy:
b) Approval - Shareholders
This Policy shall be disclosed in the Annual Report of the Company and placed on the Company’s website, 2 Sitting Fees: 30,000 per meeting a) Within the limits prescribed by the
www.pidilite.com For Board Meetings Companies Act.
b) Approval – Board
3 a) For Committee Meetings 30,000 per meeting for a) Within the limits prescribed by the
Nomination and Remuneration Companies Act.
Committee, Audit Committee, b) Approval – Board
Corporate Social Responsibility
(An Independent Director shall not be
Committee and Risk
entitled to any stock option.)
Management Committee
b) For Finance Committee, 12,000 per meeting
Share Transfer Committee,
Stakeholders Relationship
Committee and other
Committee meetings
* as on 31st March 2020
C. Remuneration Policy for Senior Managers including Key Managerial Personnel

1. The Company while deciding the remuneration package of the senior management members takes into
consideration the employment scenario and remuneration package of the managerial talent of other
comparable industries.
2. The remuneration to Senior Management employees comprises of two broad terms – Fixed
Remuneration and Variable remuneration in the form of performance incentive.
3. Remuneration of Senior Management members and other employees in the management cadre largely
consists of basic remuneration, perquisites, allowances and performance incentives. The components
of remuneration vary for different employee grades and are governed by industry patterns,
qualifications and experience of the employee, responsibilities handled his/her individual performance
etc. The annual variable pay of senior managers is linked to the Company’s performance, the
performance of the respective divisions/functions they are attached to and their individual
performance for the relevant year is measured against specific major performance areas which are
closely aligned to the Company’s objectives.
4. The performance incentive is based on internally developed detailed performance related matrix which
is verified by the HR department.
5. Annual increase in fixed remuneration is reviewed and then approved by the Nomination and
Remuneration Committee.
84
Business Responsibility Report 87

Introduction B] FINANCIAL DETAILS OF THE COMPANY
Inclusive and sustained growth has been a fundamental element of Pidilite’s strategy. In today’s changing ( in crores)
business dynamics, the long-term sustainability of an organisation depends on its ability to meet evolving
stakeholders’ expectations and create value. Stakeholders today are more aware than ever and expect 1. Paid up Capital : 50.81
businesses to operate in a fair and equitable manner. 2. Total Turnover : 6,290.43
Over the years, the Company has made progressive advancement across all three dimensions of sustainability. 3. Total profit after taxes : 1,101.62
On the economic front, through an appropriate product mix and a good understanding of customer
requirements, the Company has been consistently growing its market presence, revenues and profitability. 4. Total spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%): 2.39%*
On the environment front, initiatives are focused towards resource optimisation, reduction of waste, energy and
*CSR expense is 26.30 crores and current year PAT is 1,101.62 crores. The Company has spent more than
emissions across operations. Across the social dimension, the Company undertakes CSR initiatives, under various
2% of the average net profit for the last 3 years on CSR expenses.
thematic areas such as education, healthcare, agriculture and horticulture, milk and animal health, women
empowerment and rural development for local communities to name a few. In order to further enhance its 5. Few activities in which expenditure in 4 above has been incurred
sustainability performance, the Company endeavours to improve practices across its operations.
The Company has been supporting Education, Healthcare, Agriculture and Horticulture, Milk and Animal
The Company has initiated efforts towards development of a sustainability roadmap. This will drive integration Health Initiative, Rural Development, Water Resources management, Sanitation Initiatives for Women,
of sustainability considerations into core business systems and decision-making. The Company has published its Farmer Producer Organisation, Skill Development, Swachtha Initiative, Khadi Initiatives etc.
first sustainability report in accordance with GRI Standards for financial year 2018-19.
For further details please refer to Social and Community Service Initiatives report.
This report conforms to the Business Responsibility Reporting (BRR) requirement of the Securities & Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’) and the C] OTHER DETAILS
National Voluntary Guidelines (NVG) on Social, Environmental and Economic Responsibilities of Business
The Company has 33 subsidiaries, both direct and indirect, as on 31st March 2020. 13 of these subsidiaries
released by the Ministry of Corporate Affairs, India.
are in India and 20 of them are located abroad.
A] GENERAL INFORMATION ABOUT THE COMPANY
The Business Responsibility (BR) policies of the subsidiaries are in line with the local requirements.
1. Corporate Identity Number (CIN) of the Company: L24100MH1969PLC014336 Currently, the subsidiary companies and other entities (suppliers/ distributors, etc.) do not participate in BR
initiatives of the Company.
2. Name of the Company: Pidilite Industries Limited
3. Registered address: Regent Chambers, 7th Floor, Jamnalal Bajaj Marg, 208, Nariman Point, D] BR INFORMATION
Mumbai 400 021, Maharashtra
(1) Details of the Director/Directors responsible for BR
4. Website: www.pidilite.com
(a) Details of the Director/Directors responsible for implementation of the BR policy/policies:
5. E-mail Id: [email protected]
Sr.
6. Financial Year reported: 2019-20 Particulars Details
No.
7. Sector(s) that the Company is engaged in (industrial activity code-wise):
Manufacture of Adhesives and Glues including Rubber based Glues and Adhesives (20295) 1 DIN Number 00035317
8. List three key products/services that the Company manufactures/provides (as in balance sheet) 2 Name Shri A B Parekh
(i) Adhesives & Sealants
3 Designation Whole Time Director
(ii) Construction Chemicals/ Paint Chemicals
(iii) Art & Craft Materials (b) Details of the BR head:
For additional information on segment wise products/services, please refer to “Notes to the Financial
Sr.
Statements- Note 42. Particulars Details
No.
9. Total number of locations where business activity is undertaken by the Company:
1 DIN Number 07183784 - Shri Sabyaschi Patnaik
(a) Number of International Locations: 6 Branches and Representative offices (On Standalone basis)
01500784 - Shri Debabrata Gupta
(b) Number of National Locations:
2 Name Shri Sabyaschi Patnaik
(upto 29.02.2020)
Manufacturing locations (States / Union 9
Territories) Shri Debabrata Gupta
(w.e.f 01.03.2020)
Regional offices 8
3 Designation Director – Operations
10. Markets served by the Company – The Company’s products have a pan India presence and the products are
4 Telephone number 022- 2835 7313
also marketed in several countries like UAE, USA, Nigeria, Bangladesh, Sri Lanka, Nepal, Singapore, China,
Indonesia, Thailand, Egypt, Brazil, Bahrain, Qatar, Oman, Myanmar, Ethiopia, Kenya, France, Germany, Italy, 5 e-mail id [email protected]
Saudi Arabia, Tanzania, Hongkong, UK, Kuwait, Australia etc.
86
89

(2) Principle-wise [as per National Voluntary Guidelines (NVGs)] BR Policy/policies: (3) Governance related to BR
These Principles are as follows: Business Responsibility performance is reviewed, at-least annually, by the Board. The BR Report is part
Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and of Annual Report and is published annually. The Annual Report is available on the Company’s website
Accountability (P1). www.pidilite.com.
Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability (E] PRINCIPLE-WISE PERFORMANCE
throughout their life cycle (P2).
Principle 1: Businesses should conduct and govern themselves with ethics, transparency
Principle 3: Businesses should promote the wellbeing of all employees (P3). and accountability:
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders,
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of
especially those who are disadvantaged, vulnerable and marginalised (P4).
business operations both for internal and external stakeholders. The Company, in order to maintain these
Principle 5: Businesses should respect and promote human rights (P5). standards has adopted the ‘Code of Conduct’, which lays down the principles and standards that should
Principle 6: Businesses should respect, protect and make efforts to restore the environment (P6). govern the actions of the employees in the course of conduct of its business. Any actual or potential
violation of the Code, howsoever insignificant or perceived as such, would be a matter of serious concern
Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a for the Company. There is a Code for each of the Company’s subsidiaries in line with the local requirements
responsible manner (P7). prevailing in the country of operation.
Principle 8: Businesses should support inclusive growth and equitable development (P8).
The Company has a ‘Whistle Blower policy’, which covers serious concerns that could have impact on the
Principle 9: Businesses should engage with and provide value to their customers and consumers in a operations and performance of the Company.
responsible manner (P9).
There were no complaints from shareholders pending at the beginning of the year. The Company received
(a) Details of compliance (Reply in Y/N) 9 complaints from shareholders during the year, which were resolved expeditiously. There were no pending
complaints at the end of the year.
Sr. P P P P P P P P P
Questions
No. 1 2 3 4 5 6 7 8 9 Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability
throughout their life cycle:
1. Do you have a policy/policies for ……. Y Y Y Y Y Y Y Y Y
The products developed and provided in market are safe for use and meet the standards as per applicable
2. Has the policy been formulated in consultation Yes
with the relevant stakeholders? statutory requirements. The products exported internationally are in compliance with applicable regulations
of the relevant countries.
3. Does the policy conform to any national/ Yes
international standards? If yes, specify? Some of the products offered by us contribute to sustainability such as: -
Policies confirm to applicable Statutory Requirements as well
(50 words)
as OHSAS 18001 and ISO 14001 Standards. a. Waterproofing products which save structures from deterioration and improve the overall life of such
structures.
4. Has the policy been approved by the Board? Yes
b. We provide products for walls and roofs which improve thermal insulation and save energy.
If yes, has it been signed by MD/ owner/ CEO/ The policies have been signed by the Director - Operations of
appropriate Board Director? the Board of Director of the Company c. We provide high quality adhesives for making furniture, footwear, etc. which prolong the life of such
products.
5. Does the Company have a specified committee The implementation and adherence to the Code of
of the Board/ Director/ Official to oversee the Conduct for employees is overseen by the Human Resource d. We provide repair and maintenance products which allows such articles to be repaired and reused
implementation of the policy? Department. The Corporate Social Responsibility Policy is rather than being thrown away.
administered by the CSR Committee in line with requirements
of the Companies Act, 2013. The Director - Operations is In addition to the above, the Company has mechanisms in place to recycle the following wastes:
responsible for the implementation of Environment Health
1. Waste generated out of packaging plastic is recycled through authorized recyclers.
and Safety (EHS) policy/policies.
2. Ash generated from boilers is used for brick manufacture/ agricultural land.
6. Indicate the link for the policy to be Policies which are internal to the Company are available on
viewed online? the intranet of the Company. Other policies are available on 3. Most spent solvents are redistilled and recycled.
the website of the Company: www.pidilite.com
4. Hazardous waste is co-processed and used as a fuel in the cement industry, wherever permitted
7. Has the policy been formally communicated to Yes by regulations.
all relevant internal and external stakeholders?
5. Through authorised recyclers of Multi Layered Plastic (MLP) packing material used for our products,
8. Does the Company have in-house structure to Yes

we recycled back 71% of such MLP packing material.
implement the policy/ policies?
Principle 3: Businesses should promote the well-being of all employees:
9. Does the Company have a grievance redressal Yes
mechanism related to the policy/policies to The Company is focused towards building progressive and best-in-class people policies on work life
address stakeholders’ grievances related to the balance, career progression, development and employee engagement. The Company’s ‘Happy and Healthy’
policy/ policies? (HAH) movement saw great participation with over 65% of the employees engaging in HAH activities.
10. Has the Company carried out independent audit/ An external firm was engaged to review the policies and
As on 31st March 2020, the total number of permanent employees on the payroll of the Company
evaluation of the working of this policy by an based on their recommendations the policies have been
was 6,064 and the total number of employees hired on temporary /contractual/casual basis was 2,900.
internal or external agency? revised appropriately.
The permanent women employees were 339 and permanent employees with disabilities were 16. There is
88
91

no employee association that is recognised by the management. The details of complaints filed during the During the financial year 2019-20 the emissions/ waste generated by the Company were within the
financial year are as under: permissible limits prescribed by the State and Central Pollution Control Board.
There were no pending show cause notices relating to environment issues as on 31st March 2020.
Sr. Category No. of complaints No. of complaints
No. filed during the pending as on end of Principle 7: Business when engaged in influencing Public and Regulatory Policy, should do so in a
financial year the financial year responsible manner:
1. Child labour / forced labour / Nil Nil The Company has its representation in several business and industrial association and is a member of the
involuntary labour following trade / chamber / association:
2. Sexual harassment 1 1 • Federation of Indian Chambers of Commerce and Industry
3. Discriminatory employment Nil Nil • Indian Speciality Chemical Manufacturers Association

• Bombay Chamber of Commerce and Industry
Safety and skill upgradation programmes are provided from time to time to the employees and over a
period of time most of the employees are covered under such programmes. Employees are encouraged to The Company, through its employees and representatives, actively participates in the deliberations at these
participate in safety programmes and be acquainted with the safety measures. trade/ chamber/ associations relating to environment, sustainability, trade and economic reforms etc. and
making representations to the relevant regulatory bodies during the framing of legislations/ guidelines/
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, policies.
especially those who are disadvantaged, vulnerable and marginalised:
Principle 8: Businesses should support inclusive growth and equitable development:
The Company has identified its internal and external stakeholders and endeavours to maintain healthy
engagement with these stakeholders which allows active participation and collaboration wherever possible. The Company has been actively supporting several initiatives including self-help groups of women aimed at
With an objective to be responsive towards stakeholders who are disadvantaged, vulnerable or improving their economic standing and supporting farmers in ways to improve yield of the farm lands.
marginalised, the Company continues to build on its unique initiative ‘WAGALE’ (Wanchan-Ganan-Lekhan) These initiatives are implemented by the Company mainly through the implementing agencies as given in
which has helped students with lesser learning abilities through training sessions incorporating practical the Social and Community Service Initiatives report and Annexure to the Directors’ Report.
methods, visual representations and interactions with the academically better students. The Company also
facilitates scholarships to deserving and qualified students, having limited financial means for pursuing Principle 9: Businesses should engage with and provide value to their customers and consumers in a
higher education. responsible manner:
An art-workshop is organised every fortnight titled “rang rang Vadalia” for children with learning disabilities The Company provides all relevant information regarding a product for the user through product labelling,
at Spandan: A school for the intellectually challenged. product literature, our website and our apps. We take great care to connect with our users and provide
For further details please refer to the Social and Community Service Initiatives report, which forms part of them information about how to use the products in a safe and effective manner.
this Annual Report. Our sales force remains in regular touch with the customers and collects relevant feedback from them
Principle 5: Businesses should respect and promote human rights: relating to their concerns, their expectations or complaints. Customer feedback or complaints received
from all sources is adequately addressed in a time bound manner. As at the end of financial year, there were
The Code of Conduct is applicable to all the employees of the Company and its subsidiaries, joint ventures nine consumer cases pending which majorly relate to perceived deficiency in waterproofing done by third
and associate entities. party applicators.
It is the Company’s policy to ensure that there is no discrimination based on caste, gender, religion etc. The We take care to ensure that our businesses do not indulge in any unfair trade practices or anti-competitive
Company also takes care to ensure that no person below the age of 18 years is employed anywhere in the practices.
Company or in the units undertaking job work activities for the Company. It is also the Company’s policy
that key vendors supplying goods/services to the Company should not employ any child labour.
There have been no complaints received in the year under review, relating to any human rights issue.
Principle 6: Businesses should respect, protect and make efforts to restore the environment:
In Bhavnagar district, in cooperation with Gujarat Government, the Company has undertaken large scale
watershed development work. This involves building of check dams, ponds, recharging of wells as well as
desilting of existing water structures. This has resulted in recharging of ground water in several parts of the
district. Additionally, regular tree plantation drives have been undertaken through farmer clubs, schools and
other local organisations.
Large boilers and thermic fluid heaters are being operated with green fuel (Biomass) in place of fossil fuels.
The Company generates renewable energy through windmill and solar power units. Additional solar power
units are being installed at various manufacturing unit locations.
90
INDEPENDENT AUDITOR’S REPORT 93

To The Members of Pidilite Industries Limited
Report on the Audit of the Standalone Financial Key Audit Matter Principal audit procedures Key Audit Matter Principal audit procedures
Information Other than the Financial Statements and
Statements performed performed Auditor’s Report Thereon
Opinion We performed the following The Company’s Board of Directors is responsible for
Existence and condition Impairment of Investment To evaluate impairment of
of Inventories of raw and alternate audit procedures to the other information. The other information comprises
We have audited the accompanying standalone in certain subsidiaries investment in these two
Packing Material, Work-in- audit the existence and (Refer Note 7 of the subsidiaries, our procedures the information included in the Management Discussion
financial statements of Pidilite Industries Limited
progress, finished goods condition of inventories as Standalone Financial included: and Analysis, Directors’ Report including Annexures
(“the Company”), which comprise the Balance Sheet
and stock In trade (Refer per the guidance provided Statements) to Directors’ Report, Business Responsibility Report,
as at 31st March 2020, and the Statement of Profit
note 16 to the standalone in SA 501 “Audit Evidence – Corporate Governance and Information for Shareholder
and Loss (including Other Comprehensive Income), Specific Considerations for
financial statements) The standalone financial a. Evaluated the design and but does not include the consolidated financial
the Statement of Cash Flows and the Statement of Selected Items”, as at the statements of the Company implementation of the statements, standalone financial statements and our
Changes in Equity for the year then ended, and a year-end, since we were not includes investment in controls over identification auditor’s report thereon.
summary of significant accounting policies and other able to physically observe two subsidiaries, located of impairment indicators
explanatory information. the physical verification of at Brazil and Middle East, and review of the • Our opinion on the standalone financial statements
inventories: does not cover the other information and we do not
In our opinion and to the best of our information and aggregating to 138.62 impairment assessment of
according to the explanations given to us, the aforesaid The Company has a policy Evaluated the design and crores (as at 31st March investment in subsidiaries express any form of assurance conclusion thereon.
standalone financial statements give the information of performing physical implementation of the 2020) which is measured and tested the operating
at cost less impairment and effectiveness of these • In connection with our audit of the standalone
required by the Companies Act, 2013 (“the Act”) in verification of inventories, controls over physical
is tested for impairment controls. financial statements, our responsibility is to read the
the manner so required and give a true and fair view with the assistance of verification of inventory
annually. other information and, in doing so, consider whether
in conformity with the Indian Accounting Standards appointed independent third and tested the operating
parties, on a cyclical basis, as effectiveness of these the other information is materially inconsistent with
prescribed under section 133 of the Act read with the Due to material accumulated b. Assessed the
per plan, for all its locations, controls throughout the standalone financial statements or our knowledge
Companies (Indian Accounting Standards) Rules, 2015, losses being incurred by appropriateness and
throughout the year. the year. obtained during the course of our audit or otherwise
as amended, (“Ind AS”) and other accounting principles these subsidiaries, the reasonableness of the appears to be materially misstated.
generally accepted in India, of the state of affairs of In accordance with such Due to the COVID-19 related Company’s management forecast cash flows
the Company as at 31st March 2020, and its profit total cyclical plan, physical lock-down we were not able has tested these within the budgeted • If, based on the work we have performed, we
comprehensive income, its cash flows and the changes verification of inventories for to participate in the physical investments for impairment period based on the conclude that there is a material misstatement of this
in equity for the year ended on that date. certain locations which was verification of inventory in accordance with Ind AS understanding of the other information, we are required to report that fact.
planned to be performed as that was carried out by the business and after
36. For impairment testing, We have nothing to report in this regard.
Basis for Opinion at year-end, was performed management subsequent
management determines considering the possible
by the management to the year-end at certain Management’s Responsibility for the Standalone
We conducted our audit of the standalone financial recoverable amount, using impact due to Covid-19.
subsequent to the year-end, locations. Consequently, we Financial Statements
statements in accordance with the Standards on cash flow projections, which
which we were unable to have performed the following c. Considered historical
Auditing specified under section 143(10) of the Act represent management’s The Company’s Board of Directors is responsible
physically observe, due to alternate procedures to audit forecasting accuracy, by
(SAs). Our responsibilities under those Standards are the restrictions imposed on the existence and condition of best estimate about future
comparing previously for the matters stated in section 134(5) of the Act
further described in the Auditor’s Responsibility for the account of COVID-19. inventory: developments and takes into
forecasted cash flows to with respect to the preparation of these standalone
Audit of the Standalone Financial Statements section account past experience.
The total value of inventory actual results achieved. financial statements that give a true and fair view of
a. Observed the physical
of our report. We are independent of the Company as at 31st March 2020 is Key assumptions on the financial position, financial performance including
verification of inventories
in accordance with the Code of Ethics issued by the 730.49 crores. which management has d. Compared the assumptions other comprehensive income, cash flows and changes
carried out by the Manag-
Institute of Chartered Accountants of India (ICAI) ement at the selected
based its determination of made by the management in equity of the Company in accordance with the Ind
together with the ethical requirements that are relevant recoverable amount include of the Company with
locations subsequent to AS and other accounting principles generally accepted
to our audit of the standalone financial statements year-end through virtual estimated long-term growth comparable benchmarks in
in India. This responsibility also includes maintenance
under the provisions of the Act and the Rules made mediums, to determine rates, weighted average cost relation to key inputs such
of adequate accounting records in accordance with
thereunder, and we have fulfilled our other ethical existence and condition of of capital, Sales growth rate as long-term growth rates
and estimated operating and discount rates with the
the provisions of the Act for safeguarding the assets of
responsibilities in accordance with these requirements inventory and on a sample
margins. Management assistance of our fair value the Company and for preventing and detecting frauds
and the ICAI’s Code of Ethics. We believe that the audit basis performed roll back
procedures to arrive at the has obtained fair value specialists. and other irregularities; selection and application of
evidence obtained by us is sufficient and appropriate to
quantities at the balance of investments from appropriate accounting policies; making judgments
provide a basis for our audit opinion on the standalone
sheet date. independent valuation e. Performed sensitivity and estimates that are reasonable and prudent; and
financial statements.
experts for investments in analysis on the key design, implementation and maintenance of adequate
b. For stocks held at third assumptions such as
Key Audit Matters the said two subsidiaries. internal financial controls, that were operating effectively
party locations, obtained long-term growth rates and

direct confirmation of the Determination of for ensuring the accuracy and completeness of the
Key audit matters are those matters that, in our discount rates, to ascertain
inventory held by them as recoverable amount involves accounting records, relevant to the preparation and
professional judgment, were of most significance in the extent of change in
at the year-end. significant judgements, as presentation of the standalone financial statement that
our audit of the standalone financial statements of those assumptions that
the current period. These matters were addressed in c. Performed additional regards to reasonableness give a true and fair view and are free from material
would be required for
the context of our audit of the standalone financial alternate procedures which of assumptions involved in the investment in these
misstatement, whether due to fraud or error.
statements as a whole, and in forming our opinion included inspection of estimating future cash flows subsidiaries to be impaired In preparing the standalone financial statements,
thereon, and we do not provide a separate opinion supporting documentation of these subsidiaries and in further.
determining the discount
management is responsible for assessing the Company’s
on these matters. We have determined the matters relating to purchases, sales
and production records rate to be used. ability to continue as a going concern, disclosing,
described below to be the key audit matters to be as applicable, matters related to going concern and
relating to inventory as at
communicated in our report.
92 year-end.
95

using the going concern basis of accounting unless conditions that may cast significant doubt on the Report on Other Legal and Regulatory Requirements h) With respect to the other matters to be
management either intends to liquidate the Company Company’s ability to continue as a going concern. included in the Auditor’s Report in accordance
1. As required by Section 143(3) of the Act, based
or to cease operations, or has no realistic alternative If we conclude that a material uncertainty exists, with Rule 11 of the Companies (Audit and
on our audit we report, that:
but to do so. we are required to draw attention in our auditor’s Auditors) Rules, 2014, as amended in our
report to the related disclosures in the standalone a) We have sought and obtained all the opinion and to the best of our information and
Those Board of Directors are also responsible for
overseeing the Company’s financial reporting process. financial statements or, if such disclosures are information and explanations which to the according to the explanations given to us:
inadequate, to modify our opinion. Our conclusions best of our knowledge and belief were
Auditor’s Responsibility for the Audit of the i. The Company has disclosed the impact of
are based on the audit evidence obtained up to the necessary for the purposes of our audit.
Standalone Financial Statements date of our auditor’s report. However, future events pending litigations on its financial position
b) In our opinion, proper books of account in its standalone financial statements.
Our objectives are to obtain reasonable assurance or conditions may cause the Company to cease to
as required by law have been kept by the
about whether the standalone financial statements as continue as a going concern. ii. The Company did not have any long-term
Company so far as it appears from our
a whole are free from material misstatement, whether contracts including derivative contracts
• Evaluate the overall presentation, structure and examination of those books.
due to fraud or error, and to issue an auditor’s report for which there were any material
content of the standalone financial statements,
that includes our opinion. Reasonable assurance c) The Balance Sheet, the Statement of Profit foreseeable losses.
including the disclosures, and whether the
is a high level of assurance, but is not a guarantee and Loss including Other Comprehensive
standalone financial statements represent the iii. There has been no delay in transferring
that an audit conducted in accordance with SAs will Income, the Statement of Cash Flows and
underlying transactions and events in a manner amounts, required to be transferred, to the
always detect a material misstatement when it exists. Statement of Changes in Equity dealt with by
that achieves fair presentation. Investor Education and Protection Fund by
Misstatements can arise from fraud or error and are this Report are in agreement with the books
considered material if, individually or in the aggregate, Materiality is the magnitude of misstatements in the of account. the Company.
they could reasonably be expected to influence the standalone financial statements that, individually or
d) In our opinion, the aforesaid standalone 2. As required by the Companies (Auditor’s Report)
economic decisions of users taken on the basis of in aggregate, makes it probable that the economic
financial statements comply with the Ind AS Order, 2016 (“the Order”) issued by the Central
these standalone financial statements. decisions of a reasonably knowledgeable user of the
specified under Section 133 of the Act. Government in terms of Section 143(11) of the
As part of an audit in accordance with SAs, we standalone financial statements may be influenced.
Act, we give in “Annexure B” a statement on the
exercise professional judgment and maintain We consider quantitative materiality and qualitative e) On the basis of the written representations
matters specified in paragraphs 3 and 4 of the
professional skepticism throughout the audit. We also: factors in (i) planning the scope of our audit work received from the directors as on 31st March
Order.
and in evaluating the results of our work; and (ii) to 2020 taken on record by the Board of
• Identify and assess the risks of material evaluate the effect of any identified misstatements in Directors, none of the directors is disqualified
misstatement of the standalone financial For DELOITTE HASKINS & SELLS LLP
the standalone financial statements. as on 31st March 2020 from being appointed
statements, whether due to fraud or error, design Chartered Accountants
as a director in terms of Section 164(2) of
and perform audit procedures responsive to those We communicate with those charged with (Firm’s Registration No. 117366W/W-100018)
the Act.
risks, and obtain audit evidence that is sufficient governance regarding, among other matters, the
N. K. Jain
and appropriate to provide a basis for our opinion. planned scope and timing of the audit and significant f) With respect to the adequacy of the internal
Partner
The risk of not detecting a material misstatement audit findings, including any significant deficiencies in financial controls over financial reporting of
(Membership No. 045474)
resulting from fraud is higher than for one resulting internal control that we identify during our audit. the Company and the operating effectiveness
UDIN: 20045474AAAABF7632
from error, as fraud may involve collusion, forgery, of such controls, refer to our separate Report
We also provide those charged with governance with
intentional omissions, misrepresentations, or the in “Annexure A”. Our report expresses an Place: Mumbai
a statement that we have complied with relevant
override of internal control. unmodified opinion on the adequacy and Date: 17th June 2020
ethical requirements regarding independence, and
• Obtain an understanding of internal financial to communicate with them all relationships and other operating effectiveness of the Company’s
control relevant to the audit in order to design matters that may reasonably be thought to bear on internal financial controls over financial
audit procedures that are appropriate in the our independence, and where applicable, related reporting
circumstances. Under section 143(3)(i) of the Act, safeguards. g) With respect to the other matters to
we are also responsible for expressing our opinion
From the matters communicated with those charged be included in the Auditor’s Report in
on whether the Company has adequate internal
with governance, we determine those matters accordance with the requirements of section
financial controls system in place and the operating
that were of most significance in the audit of the 197(16) of the Act, as amended, In our opinion
effectiveness of such controls.
and to the best of our information and
standalone financial statements of the current period

• Evaluate the appropriateness of accounting and are therefore the key audit matters. We describe according to the explanations given to us,
policies used and the reasonableness of accounting these matters in our auditor’s report unless law or the remuneration paid by the Company to its
estimates and related disclosures made by the regulation precludes public disclosure about the directors during the year is in accordance with
management. the provisions of section 197 of the Act.
matter or when, in extremely rare circumstances, we
• Conclude on the appropriateness of management’s determine that a matter should not be communicated
use of the going concern basis of accounting and, in our report because the adverse consequences of
based on the audit evidence obtained, whether doing so would reasonably be expected to outweigh
a material uncertainty exists related to events or the public interest benefits of such communication.
94
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT 97

To The Members of Pidilite Industries Limited for the year ended 31st March 2020 To The Members of Pidilite Industries Limited for the year ended 31st March 2020
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date) (Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Meaning of Internal Financial Controls Over Financial i) a) The Company has maintained proper v) According to the information and explanations
Reporting under Clause (i) of Sub-section 3 of Section Reporting records showing full particulars, including given to us, the Company has not accepted any
143 of the Companies Act, 2013 (“the Act”) A company’s internal financial control over financial quantitative details and situation of fixed deposit during the year. In respect of unclaimed
We have audited the internal financial controls over reporting is a process designed to provide reasonable assets. deposits, the Company has complied with the
financial reporting of Pidilite Industries Limited (“the assurance regarding the reliability of financial reporting
Company”) as of 31st March 2020 in conjunction with our and the preparation of financial statements for external provisions of Sections 73 to 76 or any other
b) The fixed assets were physically verified relevant provisions of the Companies Act, 2013.
audit of the standalone Ind AS financial statements of purposes in accordance with generally accepted
the Company for the year ended on that date. accounting principles. A company’s internal financial during the year by the Management in
Management’s Responsibility for Internal control over financial reporting includes those policies accordance with a regular programme of vi) The maintenance of cost records has been
and procedures that verification which, in our opinion, provides specified by the Central Government under
Financial Controls
(1) pertain to the maintenance of records that, in for physical verification of all the fixed assets section 148(1) of the Companies Act, 2013.
The Company’s management is responsible for
reasonable detail, accurately and fairly reflect the
establishing and maintaining internal financial controls at reasonable intervals. According to the We have broadly reviewed the cost records
transactions and dispositions of the assets of the
based on the internal control over financial reporting information and explanation given to us, no maintained by the Company pursuant to the
company;
criteria established by the Company considering the
essential components of internal control stated in the (2) provide reasonable assurance that transactions are material discrepancies were noticed on Companies (Cost Records and Audit) Rules,
Guidance Note on Audit of Internal Financial Controls recorded as necessary to permit preparation of such verification. 2014, as amended prescribed by the Central
Over Financial Reporting issued by the Institute of financial statements in accordance with generally
Government under sub-section (1) of Section
Chartered Accountants of India. These responsibilities accepted accounting principles, and that receipts c) According to the information and
and expenditures of the company are being 148 of the Companies Act, 2013, and are of the
include the design, implementation and maintenance of explanations given to us and the records
adequate internal financial controls that were operating made only in accordance with authorisations of opinion that, prima facie, the prescribed cost
management and directors of the company; and examined by us and based on the records have been made and maintained. We
effectively for ensuring the orderly and efficient conduct
of its business, including adherence to company’s (3) provide reasonable assurance regarding prevention examination of the registered sale deed/ have, however, not made a detailed examination
policies, the safeguarding of its assets, the prevention or timely detection of unauthorised acquisition, use, transfer deed/ conveyance deed provided to of the cost records with a view to determine
and detection of frauds and errors, the accuracy and or disposition of the company’s assets that could us, we report that, the title deeds, comprising
completeness of the accounting records, and the timely have a material effect on the financial statements. whether they are accurate or complete.
all the immovable properties of land and
preparation of reliable financial information, as required Inherent Limitations of Internal Financial Controls Over
under the Companies Act, 2013. buildings which are freehold, are held in the vii) According to the information and explanations
Financial Reporting
Auditor’s Responsibility name of the Company as at the balance sheet given to us, in respect of statutory dues:
Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility date. In respect of immovable properties
Our responsibility is to express an opinion on the a) The Company has generally been regular
Company’s internal financial controls over financial of collusion or improper management override of of land and buildings that have been taken
reporting of the Company based on our audit. We controls, material misstatements due to error or fraud on lease and disclosed as fixed asset in the in depositing undisputed statutory dues,
conducted our audit in accordance with the Guidance may occur and not be detected. Also, projections of any including Provident Fund, Employees’ State
financial statements, the lease agreements
Note on Audit of Internal Financial Controls Over evaluation of the internal financial controls over financial Insurance, Income-tax, Goods and Service
reporting to future periods are subject to the risk that are in the name of the Company, where the
Financial Reporting (the “Guidance Note”) issued by Tax, Customs Duty, Cess and other material
the Institute of Chartered Accountants of India and the the internal financial control over financial reporting may Company is the lessee in the agreement.
become inadequate because of changes in conditions, statutory dues applicable to it to the
Standards on Auditing prescribed under Section 143(10)
of the Companies Act, 2013, to the extent applicable to or that the degree of compliance with the policies or ii) As explained to us, the inventories were appropriate authorities.
an audit of internal financial controls. Those Standards procedures may deteriorate. physically verified during the year by the
and the Guidance Note require that we comply with Opinion Management at reasonable intervals and no b) There were no undisputed amounts payable
ethical requirements and plan and perform the audit to In our opinion, to the best of our information and in respect of Provident Fund, Employees’
material discrepancies were noticed on physical
obtain reasonable assurance about whether adequate according to the explanations given to us, the Company State Insurance, Income-tax, Goods and
internal financial controls over financial reporting verification.
has, in all material respects, an adequate internal financial Service Tax, Customs Duty, Cess and other
was established and maintained and if such controls controls system over financial reporting and such internal
operated effectively in all material respects. iii) The Company has not granted any loans, secured material statutory dues in arrears as at
financial controls over financial reporting were operating
Our audit involves performing procedures to obtain effectively as at 31st March 2020, based on the criteria or unsecured, to companies, firms, Limited 31st March 2020 for a period of more than
audit evidence about the adequacy of the internal for internal financial control over financial reporting Liability Partnerships or other parties covered in six months from the date they became
financial controls system over financial reporting and established by the Company considering the essential the register maintained under section 189 of the payable.
their operating effectiveness. Our audit of internal components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Companies Act, 2013.
financial controls over financial reporting included
obtaining an understanding of internal financial controls Financial Reporting issued by the Institute of Chartered
Accountants of India. iv) In our opinion and according to the information
over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the and explanations given to us, the Company has
For DELOITTE HASKINS & SELLS LLP complied with the provisions of Sections 185 and
design and operating effectiveness of internal control
Chartered Accountants
based on the assessed risk. The procedures selected 186 of the Companies Act, 2013 in respect of
(Firm’s Registration No. 117366W/W-100018)
depend on the auditor’s judgement, including the
grant of loans, making investments and providing
assessment of the risks of material misstatement of the N. K. Jain
financial statements, whether due to fraud or error. Partner guarantees and securities, as applicable.
We believe that the audit evidence we have obtained (Membership No. 045474)
is sufficient and appropriate to provide a basis for UDIN: 20045474AAAABF7632
our audit opinion on the Company’s internal financial Place: Mumbai
96 controls system over financial reporting. Date: 17th June 2020
99

(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax viii) In our opinion and according to the information xiv) During the year the Company has not made any
which have not been deposited as on 31st March 2020 on account of disputes are given below: and explanations given to us, the Company preferential allotment or private placement of
has not defaulted in the repayment of loans or shares or fully or partly convertible debentures
Name of Statute Nature of Dues Forum where Dispute is Period to which the Amount Relates Amount
Pending ( in crores) borrowings to banks. The Company has not and hence reporting under clause (xiv) of CARO
taken any loans or borrowings from financial 2016 is not applicable to the Company.
Income Tax Act, Income Tax Commissioner (Appeals) AY 2007-08, AY 2010-11 to AY 2014-15 0.11 institutions and government and has not issued
1961 xv) In our opinion and according to the information
any debentures.
and explanations given to us, during the year
Income Tax TDS Commissioner (Appeals) AY 2014-15 to 2019-20 37.00
ix) The Company has not raised moneys by way the Company has not entered into any non-
Income Tax Act, 1961 - Total 37.11 * of initial public offer or further public offer cash transactions with its directors or directors
Goods and Service Goods and Additional Commissioner 2017-18 0.05 (including debt instruments) or term loans and of its holding, subsidiary or associate company
tax Act, 2017 Service tax hence reporting under clause (ix) of the CARO or persons connected with them and hence
2016 Order is not applicable. provisions of section 192 of the Companies Act,
Goods and Service tax Act, 2017 - Total 0.05 **
2013 are not applicable.
x) To the best of our knowledge and according to
Finance Act, 1994 Service Tax The Customs, Excise & 2006-07 to 2011-12, 2013-14 11.42
Service Tax Appellate the information and explanations given to us, no xvi) The Company is not required to be registered
Tribunal (CESTAT) fraud by the Company and no material fraud on under section 45-I of the Reserve Bank of India
the Company by its officers or employees has Act, 1934.
Finance Act, 1994 – Total 11.42 @
been noticed or reported during the year.
Central Excise Act, Excise Duty in Commissioner of Central 2008-09, 2009-10 0.38 For DELOITTE HASKINS & SELLS LLP
1944 Various States Excise (Appeals) xi) In our opinion and according to the information Chartered Accountants
and explanations given to us, the Company (Firm’s Registration No. 117366W/W-100018)
Excise Duty in The Customs, Excise & 2007-08 to 2009-10 0.02
has paid/ provided managerial remuneration
Various States Service Tax Appellate
in accordance with the requisite approvals N. K. Jain
Tribunal (CESTAT)
mandated by the provisions of section 197 read Partner
Central Excise Act, 1944 – Total 0.40 # (Membership No. 045474)
with Schedule V to the Companies Act, 2013.
UDIN: 20045474AAAABF7632
Sales Tax Act Sales Tax in Assessing officer 1998-99, 2005-06, 2008-09 to 2015-16 8.12
xii) The Company is not a Nidhi Company and hence
Various States Place: Mumbai
reporting under clause (xii) of the CARO 2016
Sales Tax in Commissioner of Sales Tax 2008-09 0.25 Order is not applicable. Date: 17th June 2020
Various States
xiii) In our opinion and according to the information
Sales Tax in Additional Commissioner 2002-03, 2008-09 to 2010-11, 2012-13 to 15.77
Various States 2016-17
and explanations given to us the Company is
in compliance with Section 177 and 188 of the
Sales Tax in Deputy Commissioner of 1994-95, 2005-06 to 2016-17 2.28 Companies Act, 2013, where applicable, for all
Various States Sales Tax
transactions with the related parties and the
Sales Tax in Joint Commissioner of 1998-99, 1999-00, 2002-03, 2004-05, 63.40 details of related party transactions have been
Various States Sales Tax 2008-09 to 2017-18 disclosed in the financial statements etc. as
Sales Tax in Revision Board 2004-05 0.59 required by the applicable accounting standards.
West Bengal
Sales Tax in Sales Tax Tribunal 1999-00 to 2000-01, 2002-03, 2004-05 to 36.80
Various States 2016-17
Sales Tax in High Court 2003-04 0.02

Various States
Sales Tax Act – Total 127.23^
* Net of 29.87 crores paid under protest # Net of 0.03 crores paid under protest
** Net of 0.17 crores paid under protest ^ Net of 29.36 crores paid under protest
@ Net of 0.33 crores paid under protest
There are no dues of Customs Duty which have not been deposited as on 31st March 2020 on account of disputes
98
Statement of Balance Sheet Statement of Profit and Loss 101

as at 31 March 2020
st
( in crores) for the year ended 31 March 2020
st
( in crores)
Particulars Note No. As at 31 March 2020
st
As at 31 March 2019
st
Particulars Note No. For the year ended For the year ended
ASSETS 31st March 2020 31st March 2019
1 Non-Current Assets
INCOME
(a) Property, Plant and Equipment 4 861.24 667.62
(b) Right of Use Assets 5 109.15 - Revenue from Operations 30 6,332.59 6,093.88
(c) Capital Work-In-Progress 4 247.64 229.08
(d) Goodwill 6 86.11 86.11 Other Income 31 151.86 191.51
(e) Other Intangible Assets 6 192.99 196.93
Total Income 6,484.45 6,285.39
(f) Financial Assets
(i) Investments 7 1,108.34 1,038.49 Expenses
(ii) Loans 10 4.04 2.94
(iii) Other Financial Assets 12 13.12 18.51 Cost of Materials Consumed 32 2,520.70 2,763.65
(g) Income Tax Assets (net) 17 105.80 98.53
Purchases of Stock-in-Trade 387.71 374.58
(h) Other Non-Current Assets 18 64.57 82.45
Total Non-Current Assets 2,793.00 2,420.66 Changes in inventories of Finished Goods, 33 27.98 (73.81)
2 Current Assets Work-in-Progress and Stock-in-Trade
(a) Inventories 16 730.49 734.30 Employee Benefits Expense 34 736.89 663.54
(b) Financial Assets
(i) Investments 8 715.18 1,151.39 Finance Costs 35 13.40 7.14
(ii) Trade Receivables 9 806.63 774.98
Depreciation, Amortisation and Impairment Expense 36 125.79 99.83
(iii) Cash and Cash Equivalents 14 564.17 60.24
(iv) Bank balances other than (iii) above 15 4.67 56.94 Other Expenses 37 1,175.75 1,074.01
(v) Loans 11 25.38 15.38
(vi) Other Financial Assets 13 8.23 9.25 Total Expenses 4,988.22 4,908.94
(c) Other Current Assets 19 171.31 126.87
Profit before Exceptional Items and Tax 1,496.23 1,376.45
Total Current Assets 3,026.06 2,929.35
TOTAL ASSETS 5,819.06 5,350.01 Exceptional Items 38 59.28 -
EQUITY AND LIABILITIES
EQUITY Profit before Tax 1,436.95 1,376.45
(a) Equity Share Capital 20 50.81 50.80
Tax Expense
(b) Other Equity 21 4,414.01 4,135.92
Total Equity 4,464.82 4,186.72 Current Tax 48 368.65 385.56
LIABILITIES
1 Non-Current Liabilities Deferred Tax 48 (33.32) 11.45
(a) Financial Liabilities
Net Tax Expense 335.33 397.01
(i) Lease Liabilities 51 51.30 -
(ii) Other Financial Liabilities 23 7.26 46.01 Profit for the year 1,101.62 979.44
(b) Provisions 25 40.89 34.55
(c) Deferred Tax Liabilities (net) 27 75.97 112.97 Other Comprehensive Income
Total Non-Current Liabilities 175.42 193.53
Items that will not be reclassified to profit or loss
2 Current Liabilities
(a) Financial Liabilities Remeasurement of Defined Benefit Plan 45 (14.88) (4.37)
(i) Trade Payables 22
- Total Outstanding Dues of Micro Enterprise 9.30 20.96 Income tax relating to items that will not be 48 3.68 1.39
and Small Enterprises reclassified to profit or loss
- Total Outstanding Dues of Creditors other 485.51 428.19
Total Other Comprehensive (Loss)/ Income (11.20) (2.98)
than Micro Enterprise and Small Enterprises
(ii) Lease Liabilities 51 22.04 - Total Comprehensive Income for the year 1,090.42 976.46
(iii) Other Financial Liabilities 24 552.42 440.85
(b) Other Current Liabilities 28 90.03 57.42 Earnings Per Equity Share: 43
(c) Provisions 26 11.78 14.60 Basic ( ) 21.69 19.28
(d) Current Tax Liabilities (net) 29 7.74 7.74
Total Current Liabilities 1,178.82 969.76 Diluted ( ) 21.68 19.27
Total Liabilities 1,354.24 1,163.29

See accompanying notes to the financial statements 1 to 55
TOTAL EQUITY AND LIABILITIES 5,819.06 5,350.01
See accompanying notes to the financial statements 1 to 55
In terms of our report attached In terms of our report attached
For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Chartered Accountants Chartered Accountants
N. K. JAIN BHARAT PURI M B PAREKH N. K. JAIN BHARAT PURI M B PAREKH
Partner Managing Director Executive Chairman Partner Managing Director Executive Chairman
DIN: 02173566 DIN: 00180955 DIN: 02173566 DIN: 00180955
PRADIP KUMAR MENON PUNEET BANSAL PRADIP KUMAR MENON PUNEET BANSAL
Chief Financial Officer Company Secretary Chief Financial Officer Company Secretary
100 Place: Mumbai Place: Mumbai Place: Mumbai Place: Mumbai
Date: 17th June 2020 Date: 17th June 2020 Date: 17th June 2020 Date: 17th June 2020
Statement of changes in Equity Statement of Cash Flows 103

for the year ended 31 March 2020
st
st
( in crores)
( in crores)
a. Equity Share Capital
For the year ended For the year ended
Amount 31st March 2020 31st March 2019
Balance as at 1st April 2018 50.78 A Cash Flows From Operating Activities
Changes in equity share capital during the year Profit before tax for the year 1,436.95 1,376.45
Issue of equity shares under Employee Stock Option Scheme - 2012 (refer Note 46) 0.01
Adjustments for:
Issue of equity shares under Employee Stock Option Plan - 2016* (refer Note 46) 0.00
Finance costs recognised in Statement of Profit and Loss 13.40 7.14
Balance as at 31st March 2019 50.80
Interest income recognised in Statement of Profit and Loss (5.93) (16.31)
Changes in equity share capital during the year
Issue of equity shares under Employee Stock Option Plan - 2016 (refer Note 46) 0.01 Dividend income recognised in Statement of Profit and Loss (13.38) (26.92)
Balance as at 31 March 2020

st
50.81 (Profit)/ Loss on disposal of Property, Plant and Equipment (2.67) 2.18
*Issue of equity shares under Employee Stock Option Plan - 2016 amounts to 48,550 during the year 2018-19. Profit on Sale of Intangible Asset - (33.41)
( in crores) Net gain arising on Financial Assets designated at FVTPL (110.39) (87.64)
b. Other Equity Allowance for Doubtful Debts - 4.18

Reserves and Surplus Total
Allowance for Doubtful Debts Written Back (5.80) -
Capital Securities Capital Cash Share General Retained
Reserve Premium Redem- Subsidy Options Reserve Earnings Exceptional Item - Impairment in value of Assets and Investments 59.28 -
Reserve ption Reserve Outstanding
Reserve Account Depreciation, Amortisation and Impairment Expense 125.79 99.83
Balance as at 1st April 2018 0.34 - 0.50 0.95 9.03 1,335.38 2,166.95 3,513.15 Unrealised foreign exchange (gain)/ loss (net) (0.15) 6.26
Profit for the year - - - - - - 979.44 979.44
Provision for Employee Benefits (11.36) 5.23
Other Comprehensive Income for the - - - - - - (2.98) (2.98)
year, net of income tax Expense recognised in respect of Equity-Settled 14.31 10.45
Payment of dividends - - - - - - (364.32) (364.32) Share-Based Payments
(including tax thereon)
Operating profits before Working Capital changes 1,500.05 1,347.44
Recognition of share-based payments - 10.01 - - 0.62 - - 10.63
(refer Note 46) Movements in Working Capital:
Transferred to Securities Premium on - 10.01 - - (10.01) - - -
Options exercised during the year (Increase)/ Decrease in Operating Assets
Exercised during the year - - - - 1.64 - - 1.64 Trade Receivables (17.94) (92.71)
Amortised during the year - - - - 9.51 - - 9.51
Inventories 3.81 (103.36)
Lapsed during the year - - - - (0.52) - - (0.52)
Non-Current Loans (1.10) 0.38
Balance as at 31st March 2019 0.34 10.01 0.50 0.95 9.65 1,335.38 2,779.09 4,135.92
Current Loans (10.00) (2.16)
Profit for the year - - - - - - 1,101.62 1,101.62
Other Comprehensive Income for the - - - - - - (11.20) (11.20) Other Non-Current Financial Assets 5.39 (6.82)
year, net of income tax
Other Current Financial Assets 1.02 (0.66)
Payment of dividends - - - - - - (826.76) (826.76)
(including tax thereon)
Other Non-Current Non Financial Assets 2.83 (2.70)
Recognition of share-based payments - 13.20 - - 1.24 - - 14.44
(refer Note 46) Other Current Non Financial Assets (25.70) 20.90
Transferred to Securities Premium on - 13.20 - - (13.20) - - -
Options exercised during the year Increase/ (Decrease) in Operating Liabilities
Amortised and exercised during the year - - - - 14.84 - - 14.84 Trade Payables 37.89 18.55
Lapsed during the year - - - - (0.40) - - (0.40)
Other Current Financial Liabilities 112.78 43.90

Balance as at 31st March 2020 0.34 23.21 0.50 0.95 10.89 1,335.38 3,042.74 4,414.01
Other Non-Current Financial Liabilities (38.75) 8.37
In terms of our report attached Other Current Non Financial Liabilities 32.60 7.96
For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Cash generated from Operations 1,602.88 1,239.09
N. K. JAIN BHARAT PURI M B PAREKH Taxes paid (net of refunds) (375.92) (385.94)
Partner Managing Director Executive Chairman
DIN: 02173566 DIN: 00180955 Net Cash generated from Operating Activities [A] 1,226.96 853.15
PRADIP KUMAR MENON PUNEET BANSAL
Chief Financial Officer Company Secretary
102 Place: Mumbai Place: Mumbai
Date: 17th June 2020 Date: 17th June 2020
Statement of Cash Flows Notes forming part of the 105
financial statements

st
( in crores)
1 Corporate information
For the year ended For the year ended
31st March 2020 31st March 2019 Pidilite Industries Limited, together with its subsidiaries are pioneers in consumer and industrial speciality
B Cash Flows from Investing Activities
chemicals in India. The equity shares of the Company are listed on BSE Ltd (BSE) and National Stock Exchange
of India Ltd (NSE).
Payments for purchase of Property, Plant and Equipment, (413.61) (201.40)
The address of its registered office is Regent Chambers, 7th Floor, Jamnalal Bajaj Marg, 208, Nariman Point,
Other Intangible Assets & Capital Work-In-Progress
Mumbai 400 021. The address of principal place of business is Ramkrishna Mandir Road, Off Mathuradas Vasanji
Proceeds from disposal of Property, Plant and Equipment & 20.98 42.19 Road, Andheri (E), Mumbai 400 059.
Other Intangible Assets
2 Significant Accounting Policies
Net Cash outflow on acquisition/ Investment in Subsidiaries (127.44) (61.04)
2.1 Basis of accounting and preparation of financial statements
Payments to purchase Investments (1,305.53) (2,333.38)
The standalone financial statements of the Company have been prepared in accordance with the Indian
Proceeds on sale of Investments 1,907.30 2,078.81 Accounting Standards (“Ind AS”) prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read
with Companies (Indian Accounting Standards) Rules, 2015, as amended.
Payment towards Share Application Money (18.74) -
The financial statements have been prepared under the historical cost convention except for the
Decrease/ (Increase) in Bank Deposits 53.67 (51.19) following items –
(Increase)/ Decrease in Other Bank Balances (1.40) 5.89 a. Certain Financial Assets/ Liabilities (including derivative instruments) – at Fair value
Interest received 5.93 5.05 b. Employee Stock Options - at Fair value

The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest
Dividend received 13.38 26.92
crores, except otherwise indicated.
Net cash generated/ (used) in Investing Activities [B] 134.54 (488.15) 2.2 Business Combination
C Cash Flows from Financing Activities Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred
in a business combination is measured at fair value, which is calculated as the sum of the acquisition-
Proceeds from issue of Equity shares of the Company 0.01 0.01 date fair values of the assets transferred by the Company, liabilities incurred by the Company to the
former owners of the acquiree and the equity interest issued by the Company in exchange of control of
Payment of Lease Liabilities (25.05) -
acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
Dividends paid on Equity Shares (including tax thereon) (825.36) (363.47) When the consideration transferred by the Company in a business combination includes assets or
liabilities resulting from a contingent consideration arrangement, the contingent consideration is
Interest paid (7.32) (7.14)
measured at its acquisition-date fair value and included as a part of the consideration transferred
Net cash used in Financing Activities [C] (857.72) (370.60) in a business combination. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding changes against
Net increase/ (decrease) in Cash and Cash Equivalents [A+B+C] 503.78 (5.60) goodwill or capital reserve, as the case maybe. Measurement period adjustments are adjustments that
arise from additional information obtained during the ‘measurement period’ (which cannot exceed
Cash and Cash Equivalents at the beginning of the year 60.24 66.12 one year from the acquisition date) about facts and circumstances that existed at the acquisition
Bank unrealised gain 0.33 0.05 date. Contingent consideration that is classified as an asset or a liability is subsequently (after the
measurement period) remeasured at subsequent reporting dates with the corresponding gain or loss
Cash and Cash Equivalents at the beginning of the year 60.57 66.17 being recognised in Statement of Profit and Loss.
Cash and Cash Equivalents at the end of the year (refer Note 14) 564.17 60.24 In case of business combinations involving entities under common control, the above policy does
not apply. Business combinations involving entities under common control are accounted for using
Bank unrealised gain 0.18 0.33 the pooling of interests method. The net assets of the transferor entity or business are accounted
at their carrying amounts on the date of the acquisition subject to necessary adjustments required
Cash and Cash Equivalents at the end of the year 564.35 60.57 to harmonise accounting policies. Retained earnings appearing in the financial statements of the
transferor is aggregated with the corresponding balance appearing in the financial statements of the
Net (decrease)/ increase in Cash and Cash Equivalents 503.78 (5.60)
transferee. Identity of the reserves appearing in the financial statements of the transferor is preserved
Notes: and appears in the financial statements of the transferee in the same form. Any excess or shortfall of the
consideration paid over the share capital of transferor entity or business is recognised as capital reserve
The above Cash Flow Statement has been prepared under the ‘Indirect Method’ as set out in the Indian Accounting Standard under equity.
(Ind AS 7) - Statement of Cash Flow.
2.3 Goodwill
In terms of our report attached Goodwill is measured as the excess of the sum of the consideration transferred over the net of
acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Goodwill arising
For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS on an acquisition of a business is carried at cost as established at the date of acquisition of the business
Chartered Accountants less accumulated impairment losses, if any.
N. K. JAIN BHARAT PURI M B PAREKH For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating
Partner Managing Director Executive Chairman units (or groups of cash-generating units) that is expected to benefit from the synergies of the
DIN: 02173566 DIN: 00180955 combination. A cash-generating unit to which goodwill has been allocated is tested for impairment
PUNEET BANSAL annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable
PRADIP KUMAR MENON
Company Secretary amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first
Chief Financial Officer
to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the
Place: Mumbai Place: Mumbai
Date: 17th June 2020 Date: 17th June 2020 unit pro-rata based on the carrying amount of each assets in the unit. Any impairment loss for goodwill
104 is recognised directly in Statement of Profit and Loss. An impairment loss recognised for goodwill is not
reversed in subsequent periods.
Notes forming part of the financial statements Notes forming part of the financial statements 107

2.4 Revenue Recognition
The Company recognises revenue from sale of goods, based on the terms of contract and as per the Right-of-use assets are depreciated from the commencement date on a straight-line basis over the
business practise; the Company determines transaction price considering the amount it expects to shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for
be entitled in exchange of transferring promised goods to the customer. Revenue is recognised when recoverability whenever events or changes in circumstances indicate that their carrying amounts may
it is realized or is realizable and has been earned after the deduction of variable components such as not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the
discounts, rebates, incentives, promotional couponing and schemes. The company estimates the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset
amount of variable components based on historical, current and forecast information available and does not generate cashflows that are largely independent of those from other assets. In such cases, the
either expected value method or most likely method, as appropriate and records a corresponding recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
liability in other payables; the actual amounts may be different from such estimates. These differences, The lease liability is initially measured at amortized cost at the present value of the future lease
which have historically not been significant, are recognised as a change in management estimate in a payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily
subsequent period. determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease
2.4.1 Sale of Goods liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination option.
Revenue is recognised when control of the products being sold has been transferred to a customer and
when there are no longer any unfulfilled obligations to the customer. This is generally on delivery to Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments
the customer but depending on individual customer terms, this can be at the time of dispatch, delivery have been classified as financing cash flows.
or upon formal customer acceptance. This is considered the appropriate point where the performance 2.5.2 Company as Lessor
obligations in our contracts are satisfied and the Company no longer has control over the inventory.
Sales are net of GST. Rental income from leases is recognised on a straight- line basis over the term of the relevant lease. Where
the rentals are structured solely to increase in line with expected general inflation to compensate for the
Advance received from customer before transfer of control of goods to the customer is recognised as Company’s expected inflationary cost increase, such increases are recognised in the year in which such
contract liability. benefits accrue.
2.4.2 Dividend, Interest income and Royalty Amounts due from lessees under finance leases are recognised as receivables at the amount of the
Dividend income from investments is recognised when the Company’s right to receive dividend is Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to
established. Interest income from a financial asset is recognised on a time basis, by reference to the reflect constant periodic rate of return of the Company’s net investment outstanding in respect of
principal outstanding using the effective interest method provided it is probable that the economic the leases.
benefits associated with the interest will flow to the Company and the amount of interest can be Transition
measured reliably. The effective interest rate is the rate that exactly discounts estimated future
Effective 1st April 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease
cash receipts through the expected life of the financial asset to the gross carrying amount of that
contracts existing on 1st April 2019 using the modified retrospective method and has taken the cumulative
financial asset.
adjustment to retained earnings, on the date of initial application. Consequently, the Company recorded
Royalty revenue is recognised on an accrual basis in accordance with the substance of the relevant the lease liability at the present value of the lease payments discounted at the incremental borrowing
agreement or underlying arrangement in case of sales provided that it is probable that the economic rate and the right of use asset at its carrying amount as if the standard had been applied since the
benefits associated with the royalty shall flow to the Company and the amount of royalty can be commencement date of the lease, but discounted at the Company’s incremental borrowing rate at the
measured reliably. date of initial application. Comparatives as at and for the year ended 31st March 2019 have not been
Claims/ Insurance Claim etc. are accounted for when no significant uncertainties are attached to their retrospectively adjusted and therefore will continue to be reported under the accounting policies included
eventual receipt. as part of our Annual Report for year ended 31st March 2019.
The Company’s policy for recognition of revenue (rental income) from leases is described in note 2.5.2. The Company has used the following practical expedients when applying the modified retrospective
approach to leases previously classified as operating leases applying Ind AS 17:
2.5 Leasing
i. Applied single discount rate to a portfolio of leases with reasonably similar characteristics.
The Company, at the inception of a contract, assesses whether the contract is a lease or not lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset ii. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12
for a time in exchange for a consideration. This policy has been applied to contracts existing and entered months of lease term on the date of initial application.
into on or after 1st April 2019. iii. Excluded initial direct costs for the measurement of the right-of-use asset at the date of initial
2.5.1 Company as Lessee application, and
The Company’s lease asset classes primarily consist of leases for land and buildings. The Company iv. Applied the practical expedient to grandfather the assessment of which transactions are leases.
assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases
if the contract conveys the right to control the use of an identified asset for a period of time in exchange under Ind AS 17.
for consideration. To assess whether a contract conveys the right to control the use of an identified asset, v. Using hindsight in determining the lease term where the contract contains options to extend or
the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company terminate the lease.
has substantially all of the economic benefits from use of the asset through the period of the lease and
The difference between the lease obligation recorded as of 31st March 2019 under Ind AS 17 disclosed
(iii) the Company has the right to direct the use of the asset.
under annual standalone financial statements forming part of 2019 Annual Report and the value of the
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a
lease liability as of 1st April 2019 is primarily on account of inclusion of extension and termination options
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term reasonably certain to be exercised, in measuring the lease liability in accordance with Ind AS 116 and
of twelve months or less (short-term leases) and low value leases. For these short-term and low value discounting the lease liabilities to the present value under Ind AS 116.
leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over
The incremental borrowing rate applied to lease liabilities as at 1st April 2019 is in range of 8.9% to 10%
the term of the lease.
depending on the tenure of lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the
2.6 Foreign Currencies
lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they
will be exercised. The functional currency of the Company is the Indian Rupee.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease At the end of each reporting period, monetary items (including financial assets and liabilities)
liability adjusted for any lease payments made at or prior to the commencement date of the lease plus denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary
any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated items that are measured in terms of historical cost in a foreign currency are not retranslated. Gains or
106 depreciation and impairment losses. losses arising from these translations are recognised in the Statement of Profit and Loss.

In respect of the foreign offices/ branches, which are integral foreign operations, all revenues and For certain items of Property, Plant and Equipment, the Company depreciates over estimated useful life
expenses during the month are reported at monthly average rates. Outstanding balances in respect which are different from the useful lives prescribed under Schedule II to the Companies Act, 2013 which is
of monetary assets and liabilities are restated at the year end exchange rates. Outstanding balances based upon technical assessment made by technical expert and management estimate. The management
in respect of non-monetary assets and liabilities are stated at the rates prevailing on the date of the believes that these estimated useful lives are realistic and reflect fair approximation of the period over
transaction. Net gain/ loss on foreign currency translation are recognised in the Statement of Profit which the assets are likely to be used. The estimated useful lives, residual values and depreciation method
and Loss. are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted
for on a prospective basis.
2.7 Share-based payment transactions of the Company
The estimated useful lives are as mentioned below:
Equity-settled share-based payments to employees providing similar services are measured at the fair
value of the equity instruments at the grant date.
Type of Asset Useful Life
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will Buildings 30 - 60 years
eventually vest, with a corresponding increase in equity. Plant and Machinery 6 - 25 years
2.8 Taxation Vehicles 8 - 10 years
Income tax expense represents the sum of the tax currently payable and deferred tax. Furniture and Fixtures 10 years
2.8.1 Current Tax
Office Equipment 3 - 6 years
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before
tax’ as reported in the Statement of Profit and Loss because of items of income or expense that are taxable 2.10 Intangible Assets
or deductible in other years and items that are never taxable or deductible. The Company’s current tax is 2.10.1 Intangible assets acquired separately
calculated using applicable tax rates that have been enacted or substantively enacted by the end of the
reporting period and the provisions of the Income Tax Act, 1961 and other tax laws, as applicable. Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over
2.8.2 Deferred Tax their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities each reporting period, with the effect of any changes in estimate being accounted for on a prospective
in the financial statements and the corresponding tax bases used in the computation of taxable profit. basis.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets Intangible assets with indefinite useful lives that are acquired separately are carried at cost less
are generally recognised for all deductible temporary differences to the extent that it is probable that accumulated impairment losses.
taxable profits will be available against which those deductible temporary differences can be utilised.
2.10.2 Intangible assets acquired in a business combination
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of Intangible assets acquired in a business combination and recognised separately from goodwill are initially
the asset to be recovered. recognised at their fair value at the acquisition date (which is regarded as their cost).
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in Subsequent to initial recognition, intangible assets acquired in a business combination are reported at
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible
or substantively enacted by the end of the reporting period. assets that are acquired separately.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow 2.10.3 Internally generated Intangible Assets – Research and Development Expenditure
from the manner in which the Company expects, at the end of the reporting period, to recover or settle the Expenditure on research activities is recognised in Statement of Profit and Loss in the period in which it
carrying amount of its assets and liabilities. is incurred.
2.8.3 Current and Deferred Tax for the year An internally generated intangible asset arising from development is recognised if and only if it meets the
Current and deferred tax are recognised in Statement of Profit and Loss, except when they relate to items recognition criteria of intangible assets. The amount initially recognised is the sum total of expenditure
that are recognised in other Comprehensive Income or directly in equity, in which case, the current and incurred from the date when the intangible asset first meets the recognition criteria. Where no intangible
deferred tax are also recognised in Other Comprehensive Income or directly in equity respectively. asset can be recognised, development expenditure is recognised in Statement of Profit and Loss in the
period in which it is incurred.
2.9 Property, Plant and Equipment
Subsequent to initial recognition, internally generated intangible assets are reported at cost less
2.9.1 Property, Plant and Equipment acquired separately accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets
Freehold land is stated at cost and not depreciated. Buildings, plant and machinery, vehicles, furniture and acquired separately.
office equipments are stated at cost less accumulated depreciation and accumulated impairment losses. 2.10.4 Useful lives of Intangible Assets
An item of Property, Plant and Equipment is derecognised upon disposal or when no future economic Estimated useful lives of the Intangible Assets are as follows:
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of Property, Plant and Equipment is determined as the difference between the Type of Asset Useful Life
sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss.
Computer Software 6 years
2.9.2 Capital Work-in-Progress

Technical Knowhow 10 years
Properties in the course of construction for production, supply or administrative purposes are carried
at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, Non-Compete Fees 7-10 years
borrowing costs capitalised in accordance with the Company’s accounting policy. Such properties are
Copyrights Indefinite Life
classified and capitalised to the appropriate categories of Property, Plant and Equipment when completed
and ready for intended use. Depreciation of these assets, on the same basis as other property assets, Trademark Indefinite Life
commences when the assets are ready for their intended use.
2.9.3 Depreciation 2.11 Impairment of Tangible and Intangible Assets other than Goodwill
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and
Depreciation is recognised so as to write off the cost of assets (other than Freehold Land and Capital
intangible assets to determine whether there is any indication that those assets have suffered an
Work-in-Progress) less their residual values over their useful lives, using the straight-line method as per the
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
108 useful life prescribed in Schedule II to the Companies Act, 2013.
determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable

amount of an individual asset, the Company estimates the recoverable amount of the cash-generating 2.14.4 Financial Liabilities and equity instruments
unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified,
2.14.4.1 Classification of debt or equity
corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated
to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can Debt or equity instruments issued by the Company are classified as either financial liabilities or as equity
be identified. in accordance with the substance of the contractual arrangements and the definitions of financial liability
and equity instrument.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested
for impairment at least annually, and whenever there is an indication that the asset may be impaired. 2.14.4.2 Equity Instruments
Intangible assets with indefinite useful lives are tested for impairment annually at the cash-generating An equity instrument is any contract that evidences a residual interest in the assets of an entity after
unit level. The assessment of indefinite useful life is reviewed annually to determine whether the deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made received, net of direct issue costs.
on a prospective basis.
2.14.4.3 Financial Liabilities
Recoverable amount is the higher of fair value less costs of disposal and value in use. If the recoverable
amount of the asset (or cash-generating unit) is estimated to be less than its carrying amount, the All financial liabilities (other than derivative financial instruments) are measured at amortised cost using
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An effective interest method at the end of reporting periods.
impairment loss is recognised in Statement of Profit and Loss. 2.14.5 Derecognition of Financial Assets and Liabilities
2.12 Inventories The Company derecognises a financial asset when the contractual rights to the cash flows from the
Inventories are valued at lower of cost and net realisable value. Cost of inventories is determined on financial asset expire, or when the Company transfers the contractual rights to receive the cash flows of
weighted average. Cost for this purpose includes cost of direct materials, direct labour and appropriate the financial asset in which substantially all the risks and rewards of ownership of the financial asset are
share of overheads. Net realisable value represents the estimated selling price in the ordinary course transferred, or in which the Company neither transfers nor retains substantially all the risks and rewards
of business less all estimated costs of completion and estimated costs necessary to make the sale. of ownership of the financial asset and does not retain control of the financial asset.
Obsolete, defective, unserviceable and slow/ non-moving stocks are duly provided for and valued at net The Company derecognises a financial liability (or a part of financial liability) when the contractual
realisable value. obligation is discharged, cancelled or expired.
2.13 Provisions (other than Employee Benefits) 2.14.6 Derivative Financial Instruments
A provision is recognised when as a result of past event, the Company has a present legal or constructive The Company holds derivative financial instruments such as foreign exchange forward contracts to
obligation which can be reliably estimated and it is probable that an outflow of economic benefit will be manage its exposure to foreign currency exchange rate risks. Also, the Company has an option to
required to settle the obligation. purchase and the seller has an option to sell balance stake in equity share capital of certain partly owned
Provisions (excluding retirement benefits) are determined based on the best estimate required to settle subsidiary(ies).
the obligation at the balance sheet date, taking into account the risks and uncertainties surrounding Derivatives are initially recognised at fair value at the date the contracts are entered into. Subsequent
the obligation. These are reviewed at each balance sheet date and adjusted to reflect the current best to initial recognition, these contracts are measured at fair value at the end of each reporting period and
estimates. changes are recognised in Statement of Profit and Loss.
Contingent Liabilities are not recognised but disclosed in the Notes to the financial statements. 2.15 Cash Flow Statement
2.14 Financial Instruments Cash flows are reported using the indirect method, whereby profit/ loss before extraordinary items
2.14.1 Initial Recognition and Measurement and tax for the period is adjusted for the effects of transactions of non-cash nature, any deferrals or
accruals of past or future operating cash receipts or payments. Cash Flows from operating, investing and
Financial assets and financial liabilities are recognised when the Company becomes a party to the
financing activities of the Company are segregated.
contractual provisions of the instruments. At initial recognition, financial assets and financial liabilities
are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or Cash and Cash Equivalents for the purpose of Cash Flow Statement comprise of cash at bank, cash in
issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair hand and short- term deposits with an original maturity of three months or less, as reduced by bank
value through profit or loss) are added to or deducted from the value of the financial assets or financial overdrafts.
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition 2.16 Segment Reporting
of financial assets or financial liabilities at Fair Value Through Profit or Loss are recognised in the
Statement of Profit and Loss. The Company identifies primary segments based on the dominant source, nature of risks and returns
and the internal organisation and management structure. The operating segments are the segments
2.14.2 Subsequent measurement of Financial Assets for which separate financial information is available and for which operating profit/ loss amounts are
All recognised financial assets are subsequently measured in their entirety at either amortised cost or evaluated regularly by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources
fair value, depending on the classification of the financial assets. Debt instruments that meet conditions and in assessing performance.
based on purpose of holding assets and contractual terms of instrument are subsequently measured at The accounting policies adopted for segment reporting are in line with the accounting policies of the
amortised cost using effective interest method. Company. Segment revenue, segment expenses, segment assets and segment liabilities have been
All other financial assets are measured at a fair value. identified to segments on the basis of their relationship to the operating activities of the segment.
Inter-segment revenue is accounted on the basis of cost plus margins. Revenue, expenses, assets and
Income is recognised on an effective interest basis for debt instruments other than those financial assets
liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis
classified as Fair Value Through Profit or Loss. Interest income is recognised in profit or loss and is
have been included under “unallocated revenue/expenses/assets/liabilities” respectively.
included in the “Other income” line item.
2.17 Employee Benefits
2.14.3 Impairment of Financial Assets
Employee benefits include Provident Fund, Superannuation Fund, Employee State Insurance Scheme,
The Company recognises loss allowance using expected credit loss model for financial assets which are
Gratuity Fund, Compensated Absences, Anniversary Awards, Premature Death Pension Scheme and
not measured at Fair Value Through Profit or Loss. Expected credit losses are weighted average of credit
Total Disability Pension Scheme.
losses with the respective risks of default occurring as the weights. Credit loss is the difference between
all contractual cash flows that are due to the Company in accordance with the contract and all the cash 2.17.1 Defined Contribution Plans
flows that the Company expects to receive, discounted at original effective rate of interest. The Company’s contribution to Provident Fund, Superannuation Fund, National Pension Scheme and
For Trade receivables, the Company measures loss allowance at an amount equal to lifetime expected Employee State Insurance Scheme are considered as defined contribution plans and are charged as an
credit losses. The Company computes expected credit loss allowance based on a provision matrix which expense based on the amount of contribution required to be made and when services are rendered by
110 takes into account historical credit loss experience and adjusted for forward-looking information. the employees.

2.17.2 Defined Benefit Plans 3.1 Key accounting judgements, assumptions and estimates
For Defined Benefit Plans in the form of Gratuity Fund, the cost of providing benefits is determined The key assumptions concerning the future and other key sources of estimation uncertainty at the
using the Projected Unit Credit method, with actuarial valuations being carried out at each balance reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
sheet date. Remeasurement, comprising actuarial gains and losses and the return on plan assets assets and liabilities within the next financial year, are described below:
(excluding net interest) is reflected immediately in the Balance Sheet with a charge or credit recognised 3.1.1 Impairment of investments in subsidiaries
in Other Comprehensive Income in the period in which they occur. Remeasurement recognised in
Other Comprehensive Income is reflected immediately in retained earnings and is not reclassified to Investment in subsidiaries is measured at cost and tested for impairment annually. For impairment
profit or loss. Past service cost is recognised immediately for both vested and the non-vested portion. testing, management determines recoverable amount, using cash flow projections which take into
The retirement benefit obligation recognised in the Balance Sheet represents the present value of the account past experience and represent management’s best estimate about future developments.
defined benefit obligation, as reduced by the fair value of scheme assets. Any asset resulting from this Key assumptions on which management has based its determination of recoverable amount include
calculation is limited taking into account the present value of available refunds and reductions in future estimated long term growth rates, weighted average cost of capital and estimated operating margins.
contributions to the schemes. Management obtains fair value of investments from independent valuation experts.
2.17.3 Short-Term and Other Long-Term Employee Benefits 3.1.2 Impairment of Goodwill and Other Intangible Assets
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave Goodwill and Other Intangible Assets (i.e. trademarks and copyrights) are tested for impairment on an
and sick leave in the period the related service is rendered at the undiscounted amount of the benefits annual basis. Recoverable amount of cash-generating units is determined based on higher of value-in-
expected to be paid in exchange for that service. use and fair value less cost to sell. The impairment test is performed at the level of the cash-generating
unit or groups of cash-generating units which are benefitting from the synergies of the acquisition
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted and which represents the lowest level at which the intangibles are monitored for internal management
amount of the benefits expected to be paid in exchange for the related service. purposes.
Liabilities recognised in respect of other long-term employee benefits are measured at the present Market related information and estimates are used to determine the recoverable amount. Key
value of the estimated future cash outflows expected to be made by the Company in respect of services assumptions on which management has based its determination of recoverable amount include
provided by employees up to the reporting date. estimated long term growth rates, weighted average cost of capital and estimated operating margins.
2.18 Earnings per share Cash flow projections take into account past experience and represent management’s best estimate
about future developments.
The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS
is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the 3.1.3 Employee related provisions
weighted average number of equity shares outstanding during the period. Diluted EPS is determined The costs of long term and short term employee benefits are estimated using assumptions by the
by adjusting the profit or loss attributable to equity shareholders and the weighted average number of management. These assumptions include rate of increase in compensation levels, discount rates,
equity shares outstanding for the effects of all dilutive potential ordinary shares, which includes all stock expected rate of return on assets and attrition rates. (disclosed in Note 45).
options granted to employees.
3.1.4 Income taxes
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
Significant judgements are involved in estimating budgeted profits for the calculation of advance tax
periods presented for any share splits and bonus shares issues including for changes effected prior to
and deferred tax, and determining provision for income taxes and uncertain tax positions (disclosed in
the approval of the financial statements by the Board of Directors.
Note 48).
2.19 Assets held for sale
3.1.5 Property, Plant and Equipment and Other Intangible Assets
Sale of business is classified as held for sale, if their carrying amount is intended to be recovered
The useful lives and residual values of Company’s assets are determined by the management at the time
principally through sale rather than through continuing use. The condition for classification as held for
the asset is acquired. These estimates are reviewed annually by the management. The lives are based on
sale is met when disposal business is available for immediate sale and the same is highly probable of historical experience with similar assets as well as anticipation of future events, which may impact their
being completed within one year from the date of classification as held for sale. life, such as changes in technical or commercial obsolescence arising from changes or improvements in
2.20 Discontinued operations production or from a change in market demand of the product or service output of the asset.
A discontinued operation is a component of the Company’s business that represents a separate line of 3.1.6 Leases
business that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS
to resale. Classification as a discontinued operation occurs upon the earlier of disposal or when the 116. Identification of a lease requires significant judgment. The Company uses significant judgement in
operation meets the criteria to be classified as held for sale. assessing the lease term (including anticipated renewals) and the applicable discount rate.
2.21 Non-current assets and disposal groups held for sale Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted
Assets of disposal groups that is available for immediate sale and where the sale is highly probable of with any option to extend or terminate the lease, if the use of such option is reasonably certain.The
being completed within one year from the date of classification are considered and classified as assets Company makes an assessment on the expected lease term on a lease-by-lease basis and there by
held for sale. Non-current assets and disposal groups held for sale are measured at the lower of carrying assesses whether it is reasonably certain that any options to extend or terminate the contract will be
amount and fair value less costs to sell. exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold
improvements undertaken over the lease term, costs relating to the termination of the lease and the
3 Critical Accounting Judgements and key sources of Estimation Uncertainty importance of the underlying asset to operations taking into account the location of the underlying asset
The preparation of the Company’s financial statements requires management to make judgements, and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that
estimates and assumptions that affect the application of accounting policies, reported amounts of the lease term reflects the current economic circumstances.
assets, liabilities, income and expenses, and accompanying disclosures, and the disclosure of contingent The discount rate is generally based on the incremental borrowing rate specific to the lease being
liabilities. The estimates and associated assumptions are based on historical experience and other evaluated or for a portfolio of leases with similar characteristics.
factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both current and
future periods.
112

( in crores)
Notes:
4 Property, Plant and Equipment and Capital Work-In-Progress ( in crores)
As at As at a) Assets given under lease included in Note 4 above are as under:
31st March 31st March
2020 2019 As at As at
Carrying Amounts 2020 2019
Freehold Land 84.40 53.30
Carrying Amounts
Buildings 260.20 182.60
Plant and Machinery 453.15 371.41
Buildings 22.29 21.27
Vehicles 5.06 5.62
Furniture and Fixtures 26.42 25.44 TOTAL 36.08 35.06
Office Equipment 32.01 29.25

Freehold Buildings Total
861.24 667.62
Land
Capital Work-In-Progress* 247.64 229.08
Gross Carrying Amount
TOTAL 1,108.88 896.70
Balance as at 1st April 2018 13.79 26.12 39.91
*Net of Impairment 55.19 crores ( 5.92 crores as at 31st March 2019) (refer Note 38)
Additions - 1.29 1.29
Free- Buildings Plant and Vehicles Furniture Office TOTAL
hold Machinery and Equipment Disposals/ Adjustments - 0.79 0.79
Land Fixtures
Balance as at 31st March 2019 13.79 28.20 41.99
Balance as at 1st April 2018 53.27 250.35 974.27 19.18 72.35 101.85 1,471.27
Disposals/ Adjustments - - -
Additions 0.03 12.19 77.24 0.65 2.88 14.45 107.44
Disposals/ Adjustments - (0.66) (37.67) (1.15) (0.64) (5.34) (45.46) Balance as at 31 March 2020
st
13.79 31.32 45.11

st
53.30 261.88 1,013.84 18.68 74.59 110.96 1,533.25
Additions 31.10 88.40 152.46 0.66 5.21 12.82 290.65 Accumulated Depreciation and Impairment
Disposals/ Adjustments - (2.74) (13.96) (0.20) (0.09) (0.06) (17.05) Balance as at 1st April 2018 - (5.87) (5.87)
st
84.40 347.54 1,152.34 19.14 79.71 123.72 1,806.85 Disposals/ Adjustments - (0.10) (0.10)
Depreciation expense - (0.96) (0.96)

Accumulated Depreciation and Impairment
Balance as at 1st April 2018 - (71.68) (606.74) (12.99) (45.41) (77.83) (814.65) Balance as at 31 March 2019
st
- (6.93) (6.93)
Eliminated on disposal of assets - 0.04 28.10 1.08 0.51 4.78 34.51 Disposals/ Adjustments - - -
Depreciation expense - (7.64) (63.79) (1.15) (4.25) (8.66) (85.49) Depreciation expense - (2.10) (2.10)
Balance as at 31st March 2019 - (79.28) (642.43) (13.06) (49.15) (81.71) (865.63) Balance as at 31 March 2020
st
- (9.03) (9.03)
Eliminated on disposal of assets - 1.63 12.33 0.08 0.04 0.02 14.10
Depreciation expense - (9.69) (69.09) (1.10) (4.18) (10.02) (94.08) Net Carrying Amount
st
- (87.34) (699.19) (14.08) (53.29) (91.71) (945.61)
Net Carrying Amount Additions - 1.29 1.29
Balance as at 1st April 2018 53.27 178.67 367.53 6.19 26.94 24.02 656.62 Disposals/ Adjustments - 0.79 0.79
Additions 0.03 12.19 77.24 0.65 2.88 14.45 107.44 Depreciation expense - (0.96) (0.96)
Disposals/ Adjustments - (0.66) (37.67) (1.15) (0.64) (5.34) (45.46)
Depreciation eliminated on disposal of assets - (0.10) (0.10)
Depreciation expense - (7.64) (63.79) (1.15) (4.25) (8.66) (85.49)

Depreciation Eliminated on - 0.04 28.10 1.08 0.51 4.78 34.51
disposal of assets Additions - 3.12 3.12
Balance as at 31st March 2019 53.30 182.60 371.41 5.62 25.44 29.25 667.62 Disposals/ Adjustments - - -
Additions 31.10 88.40 152.46 0.66 5.21 12.82 290.65
Depreciation eliminated on disposal of assets - - -
st
13.79 22.29 36.08
disposal of assets b) Buildings includes shares of co-operative societies of 0.01 crores ( 0.01 crores as at 31 March 2019)
st
114 Balance as at 31st March 2020 84.40 260.20 453.15 5.06 26.42 32.01 861.24


( in crores) ( in crores)
5 Right of Use Assets (refer Note 51) 6 Goodwill and Other Intangible Assets
As at As at As at As at
31st March 31st March 31st March 31st March
2020 2019 2020 2019
Carrying Amounts
Carrying Amounts
Goodwill 86.11 86.11
Leasehold Land 39.65 - Total Goodwill (A) 86.11 86.11
Leasehold Buildings 69.50 - Other Intangible Assets
Trademark 157.67 157.91
TOTAL 109.15 -
Computer Software 12.84 12.90
Copyrights 4.48 4.72
Leasehold Leasehold TOTAL Technical Knowhow Fees 17.63 20.55
Land Buildings
Non Compete Fees 0.37 0.85
Total Other Intangible Assets (B) 192.99 196.93
Recognised on adoption of Ind AS 116 as at 1st April 2019 (refer Note 51) 41.03 69.85 110.88 Total Intangible Assets (A)+(B) 279.10 283.04
Additions - 22.46 22.46 Goodwill Trademark Computer Copyrights Technical Non Total
Software Knowhow Compete
Disposals/ Adjustments - - -
Fees Fees
Balance as at 31st March 2020 41.03 92.31 133.34 Gross Carrying Amount
Balance as at 1st April 2018 86.11 157.91 46.39 4.72 39.84 4.56 339.53
Additions - - 6.64 - 1.28 - 7.92
Disposals/ Adjustments - - 0.07 - - - 0.07
Recognised on adoption of Ind AS 116 as at 1st April 2019 (refer Note 51) - - - Balance as at 31st March 2019 86.11 157.91 53.10 4.72 41.12 4.56 347.52
Depreciation expense (1.38) (22.81) (24.19) Additions - - 4.19 - - - 4.19
Disposals/ Adjustments - (0.24) - (0.24) (0.76) (0.02) (1.26)
Balance as at 31st March 2020 (1.38) (22.81) (24.19)
Balance as at 31st March 2020 86.11 157.67 57.29 4.48 40.36 4.54 350.45
Accumulated Amortisation and Impairment

Net Carrying Amount
Balance as at 1st April 2018 - - (35.11) - (17.74) (3.23) (56.08)
Recognised on adoption of Ind AS 116 as at 1st April 2019 (refer Note 51) 41.03 69.85 110.88
Amortisation expense - - (5.11) - (2.83) (0.48) (8.42)
Additions - 22.46 22.46 Eliminated on disposal of assets - - 0.02 - - - 0.02
Disposals/ Adjustments - - - Balance as at 31st March 2019 - - (40.20) - (20.57) (3.71) (64.48)
Depreciation expense (1.38) (22.81) (24.19)
Eliminated on disposal of assets - - (0.05) - 0.68 0.02 0.65
Balance as at 31st March 2020 39.65 69.50 109.15 Balance as at 31st March 2020 - - (44.45) - (22.73) (4.17) (71.35)
Net Carrying Amount

Balance as at 1st April 2018 86.11 157.91 11.28 4.72 22.10 1.33 283.45
Additions - - 6.64 - 1.28 - 7.92
Disposals/ Adjustments - - 0.07 - - - 0.07
Amortisation Eliminated on - - 0.02 - - - 0.02

disposal of assets
Additions - - 4.19 - - - 4.19
Disposals/ Adjustments - (0.24) - (0.24) (0.76) (0.02) (1.26)
Amortisation Eliminated on - - (0.05) - 0.68 0.02 0.65
disposal of assets
The Company has estimated the useful life for its copyrights and trademark as indefinite on the basis of renewal of legal
rights and the management’s intention to keep it perpetually
116

Goodwill, Copyrights and Trademark 7 Investments - Non-Current
As at 31stMarch 2020 As at 31st March 2019
Goodwill, copyrights and trademark in the books of the Company pertain to Consumer and Bazaar business
Qty in crores Qty in crores
of the Company.
Non-Current Investments
At the end of each reporting period, the Company reviews carrying amount of goodwill, copyrights and A] Investment in Equity Instruments
trademark to determine whether there is any indication that goodwill, copyrights and trademark has
i) Quoted:
suffered any impairment loss. Accordingly, recoverable amount of goodwill, copyrights and trademark is
Investment in Associates (fully paid up) (at cost)
arrived basis projected cashflows from Consumer and Bazaar business.
Equity Shares of 1 each of Vinyl Chemicals (India) Ltd 74,51,540 1.18 74,51,540 1.18
Recoverable amount of goodwill, copyrights and trademark exceeds the carrying amount of goodwill,
TOTAL Quoted (i) 1.18 1.18
copyrights and trademark in the books as on 31st March 2020. Further there are no external indications of
impairment of goodwill, copyrights and trademark. As a result, no impairment loss on goodwill, copyrights ii) Unquoted:
and trademark is required to be recognised. (a) Investment in Subsidiaries (fully paid up) (at cost unless otherwise
stated)
Projected cashflows from Consumer and Bazaar business Equity Shares of USD 1 each of Pidilite International Pte Ltd 2,35,92,766 115.81 2,35,92,766 115.81
Equity Shares of AED 1 each of Pidilite Middle East Ltd 9,11,63,000 139.70 9,11,63,000 139.70
[Impairment in value of investments 65.92 crores
The recoverable amount of this cash-generating unit is determined based on a value in use calculation
( 65.92 crores as at 31st March 2019)]
which uses cash flow projections based on financial budgets approved by the management for next year,
Equity Shares of BRL 1 each of Pulvitec do Brasil Industria e 7,43,02,867 175.04 7,43,02,867 175.04
estimates prepared for the next 4 years thereafter and a discount rate of 12.0% per annum (13.1% per Comercio de Colas e Adesivos Ltda
annum as at 31st March 2019). [Impairment in value of investments 110.20 crores
( 110.20 crores as at 31st March 2019)]
Cash flow projections during the budget period are based on the same expected gross margins and raw Equity Shares of USD 1 each of Pidilite USA Inc 1,47,80,000 64.77 1,47,80,000 64.77
materials price inflation throughout the budget period. The cash flows beyond that five-year period have
Equity Shares of EGP 100 each of Pidilite Industries Egypt SAE 7,396 0.54 7,396 0.54
been extrapolated using a steady 8% per annum (8% per annum as at 31st March 2019) growth rate. The
Equity Shares of BIRR 100 each of Pidilite Chemical PLC 1,38,525 3.70 1,24,076 3.34
management believes that any reasonably possible change in the key assumptions on which recoverable [refer Note 38] [Impairment in value of investments 3.70 crores
amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable ( Nil as at 31st March 2019)]
amount of the cash-generating unit. Equity Shares of 10 each of Fevicol Company Ltd 2,69,260 2.24 2,69,260 2.24
Equity Shares of 10 each of Pagel Concrete Technologies Pvt Ltd 80,000 0.84 80,000 0.84
The key assumptions used in the value in use calculations for Consumer and Bazaar cash-generating unit are [Impairment in value of investments 0.84 crores ( 0.84 crores
as follows: as at 31st March 2019)]
Equity Shares of 10 each of Bhimad Commercial Company Pvt Ltd 10,000 0.02 10,000 0.02
Budgeted sales growth Sales growth is assumed at 17.5% (CAGR) (14.5% as at 31st March 2019) in line Equity Shares of 10 each of Madhumala Ventures Pvt Ltd 1,62,395 126.49 10,000 0.02
with current year projections. The values assigned to the assumption reflect (formerly known as Madhumala Traders Pvt Ltd)
past experience and current market scenario considering COVID-19 impact [refer Note 53 (a)]
and are consistent with the managements’ plans for focusing operations in Equity Shares of 10 each of Building Envelope Systems India Ltd 50,10,000 8.88 50,10,000 8.88
these markets. The management believes that the planned sales growth per Equity Shares of 10 each of Nina Percept Pvt Ltd
8,43,999 66.17 8,43,999 66.17
[(refer Note 53 (c)]
year for the next five years is reasonably achievable.
Equity Shares of 10 each of ICA Pidilite Pvt Ltd 28,33,964 125.96 28,33,964 125.96
Equity Shares of 10 each of Cipy Polyurethanes Pvt Ltd 65,816 139.01 65,816 139.01
Raw materials price Forecast for Material cost growth CAGR higher by 0.2% (1% as at 31st March
inflation 2019) vs. sales growth, considering impact of commodity cost inflation. Equity contribution towards 100% Membership Interest in Pidilite 1 7.41 1 7.41
Ventures LLC
Equity Shares of 10 each of Pidilite Litokol Pvt Ltd 6,00,000 0.60 - -
Other budgeted costs Commercial spends (schemes and A&SP) have been continued at current [refer Note 53 (d)]
year’s % to sales. Other fixed costs are in line with the current year’s growth. Equity Shares of 10 each of Pidilite Grupo Puma Manufacturing 5,000 0.01 - -
Ltd [refer Note 53 (e)]
Less : Impairment in value of Investments (180.66) (176.96)

TOTAL (a) 796.53 672.79
(b) Investment in other entity (fully paid up) (at FVTPL)
Equity Shares of 10 each of Pal Peugeot Ltd 1,21,300 0.12 1,21,300 0.12
Less : Impairment in value of Investment (0.12) (0.12)
TOTAL (b) - -
TOTAL Unquoted [(a)+(b)] (ii) 796.53 672.79
Total Investment in Equity Instruments [(i)+(ii)] [A] 797.71 673.97
118

As at 31st March 2020 As at 31st March 2019 8 Investments - Current
Qty in crores Qty in crores As at 31st March 2020 As at 31st March 2019
B] Investment in Preference Shares (at FVTPL) (Quoted) Qty in crores Qty in crores
Non-Cumulative Perpetual Preference shares of Kotak Mahindra 3,00,00,000 15.20 3,00,00,000 15.00 Current Investments
Bank Ltd
A] Investment in Debentures, Bonds & Market Instruments (at FVTPL)
Total [B] 15.20 15.00 (Quoted)
C] Investment in Debentures, Bonds & Market Instruments Tax-free bonds of Housing and Urban Development 2,00,000 21.27 2,00,000 21.04
(at FVTPL) (Quoted) Corporation Ltd
Units of Bharat Bond ETFs 2,50,000 25.55 - - Tax-free bonds of National Housing Bank 10,000 5.59 10,000 5.48
Total [C] 25.55 - Tax-free bonds of Indian Railway Finance Corporation 12 Feb 22 70,000 7.57 70,000 7.56
Tax-free bonds of Indian Railway Finance Corporation 11 Jan 26 1,000 10.40 1,000 10.39
D] Investment in Alternative Investment Fund (at FVTPL) (Unquoted)
Secured, redeemable, non-convertible debentures of Citicorp - - 2,500 26.59
Units of Fireside Ventures Investment Fund II 50,000 4.13 - -
Finance (India) Ltd
Total [D] 4.13 - Secured, redeemable non-convertible debentures of HDB - - 250 30.38
Financial services
E] Investment in Mutual Funds (at FVTPL) (Unquoted)
TOTAL [A] 44.83 101.44
Units of Aditya Birla Sun Life FTP-Series PJ (1135 days) - Direct 1,00,00,000 11.81 1,00,00,000 10.82
Growth B] Investment in Mutual Funds (at FVTPL) (Unquoted)
Units of Aditya Birla Sun Life FTP-Series PK (1132 days) - Direct 2,00,00,000 23.55 2,00,00,000 21.59 Units of HDFC Overnight Fund - Direct Growth 6,79,896 201.88 1,68,854 47.66
Growth
Units of SBI Overnight Fund - Direct Plan Growth 6,46,655 210.40 1,60,785 49.72
Units of DSP BlackRock FMP S223-39M - Direct Growth 1,50,00,000 17.76 1,50,00,000 16.27
Units of Aditya Birla Sun Life Overnight Fund - Direct Growth 9,22,816 99.70 - -
Units of DSP BlackRock FMP S224-39M - Direct Growth 1,50,00,000 17.67 1,50,00,000 16.21
Units of ICICI Overnight Fund - Direct Growth 1,46,98,077 158.37 - -
Units of HDFC FMP 1143D March 2018 (1) - Direct Growth - S39 1,00,00,000 11.81 1,00,00,000 10.82
Units of IDFC Corporate Bond Fund - Direct Plan - Growth - - 4,81,11,596 61.87
Units of IDFC FTP Series 140 Direct Plan - Growth (1145 days) 1,50,00,000 17.73 1,50,00,000 16.25 Units of Reliance Banking & PSU Debit Fund - Direct Growth Plan - - 5,52,03,331 75.05
Units of Kotak FMP Series 219 - Direct Growth 1,50,00,000 17.77 1,50,00,000 16.29 Units of SBI Short Term Debt Fund - Direct Plan - Growth - - 2,67,44,404 58.92
Units of ICICI FMP Series 83 1105 D Plan F - Direct Growth 50,00,000 5.91 50,00,000 5.42 Units of ICICI Prudential Equity Arbitrage Fund - Direct Plan - - 6,02,48,585 87.31
Dividend - DR
Units of Reliance FMP XXXVII Series 12 - Direct Growth 1,00,00,000 11.83 1,00,00,000 10.83
Units of Kotak Equity Arbitrage Fund - Direct Plan - - 3,92,78,155 92.46
Units of Kotak FMP Series 251 - 1265 days Direct Plan Growth 2,00,00,000 23.12 2,00,00,000 21.01 Fortnightly Dividend
Units of SBI FMP Series C33 1216 days - Direct Growth 2,00,00,000 22.69 2,00,00,000 20.66 Units of Kotak Savings Fund - Direct Plan Growth - - 3,63,21,092 110.97
Units of SBI Debt Fund Series C49 1178 days - Direct Plan Growth 2,00,00,000 22.06 2,00,00,000 20.08 Units of Aditya Birla Sun Life Banking & PSU Debt Fund - - - 15,28,949 36.99
Direct Growth
Units of HDFC FMP 1182D Jan 2019 (1) - Direct Growth 2,00,00,000 22.57 2,00,00,000 20.54
Units of Aditya Birla Sun Life Corporate Bond Fund - Direct - - 64,44,650 46.49
Units of HDFC FMP 1126D Mar 2019 (1) - Direct Growth 2,00,00,000 22.21 2,00,00,000 20.20 Plan Growth
Units of IDFC FTP Series 149 (1424 days) - Direct Growth 1,50,00,000 17.26 1,50,00,000 16.17 Units of Aditya Birla Sun Life Equity Arbitrage Fund - Direct - - 7,90,33,020 87.13
Dvd reinvst
Units of ICICI Prudential Short Term Fund - Growth - - 1,12,15,155 45.25
Units of Reliance Arbitrage Fund - Direct Dvd reinvst - - 6,98,70,243 90.08
Units of Axis Banking & PSU Debt fund - Direct Plan Growth - - 1,16,058 20.54
Units of HDFC Short Term Debt Fund - Direct Plan Growth - - 1,77,04,254 36.88
Units of IDFC Banking and PSU Debt Fund - Direct Plan Growth - - 1,23,89,578 20.10 Units of HDFC Corporate Bond Fund - Direct Plan Growth - - 2,31,55,787 48.48
Units of SBI Banking & PSU Debt Fund - Direct Plan Growth - - 95,378 20.47 Units of ICICI Prudential Bond Fund - Direct Plan Growth - - 1,31,84,101 34.82
Total [E] 265.75 349.52 Units of ICICI Prudential Corporate Bond Fund - Direct - - 4,33,00,226 85.12
Plan Growth
TOTAL [A+B+C+D+E] 1,108.34 1,038.49
TOTAL [B] 670.35 1,049.95
Aggregate carrying value of quoted investments 41.93 16.18
TOTAL [A]+[B] 715.18 1,151.39
Aggregate market value of quoted investments 71.90 75.10
Aggregate carrying value of unquoted investments 1,066.41 1,022.31
Aggregate amount of Impairment in value of investments 180.78 177.08
Aggregate carrying value of unquoted investments 670.35 1,049.95
120

9 Trade Receivables 11 Loans - Current

2020 2019 2020 2019
Secured, Considered good 104.97 87.67 Loans and Advances to Related Parties* (refer Note 44)
Unsecured, Considered good 701.66 687.31 Unsecured, Considered good 9.31 4.71
Unsecured, Considered doubtful 31.02 36.82 Considered doubtful 0.33 0.33
Unsecured which have Significant Increase in Credit Risk - - 9.64 5.04
Unsecured, Credit Impaired - - Less: Allowance for doubtful balances (0.33) (0.33)
837.65 811.80 9.31 4.71
Less: Allowance for expected credit loss (31.02) (36.82) Loans and Advances to Employees & Others* 16.07 10.67
TOTAL 806.63 774.98 TOTAL 25.38 15.38
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables *Loans given for business purpose.
based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for
forward-looking information. The expected credit loss allowance is based on the ageing of the receivable days and the
rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows: 12 Other Financial Assets - Non-Current
As at As at
Ageing Expected Credit Loss 31st March 31st March
2020 2019
As at As at
31st March 31st March Security Deposit 13.12 10.90
2020 2019
Derivative Asset towards call option to buy subsidiary shares - 7.61
Within the credit period (in days)
Other Receivables
01-90 1.0% 1.2%
Unsecured, Considered good - -
91-180 73.2% 72.5%
Considered doubtful 1.74 1.74
181-360 60.3% 64.4%
1.74 1.74
>360 81.1% 81.9%
Less: Allowance for doubtful balances (1.74) (1.74)
Movement in expected credit loss allowance - -
For the year For the year TOTAL 13.12 18.51

ended ended
2020 2019 13 Other Financial Assets - Current
Balance at the beginning of the year 36.82 32.64 As at As at
Movement in expected credit loss allowance on trade receivables calculated at lifetime (5.80) 4.18
2020 2019
expected credit losses
Security Deposit
Balance at the end of the year 31.02 36.82
Unsecured, Considered good 5.82 5.58
A formal credit policy has been framed and credit facilities are given to dealers within the framework of the credit policy.
As per credit risk management mechanism, a policy for doubtful debt has been formulated and risk exposure related to Considered doubtful 0.55 0.45
receivables are identified based on criteria mentioned in the policy and provided for credit loss allowance.
6.37 6.03
Trade receivables includes receivables from Companies/firms where directors are directors/ members/ partners
(refer Note 44). Less: Allowance for doubtful balances (0.55) (0.45)
5.82 5.58
10 Loans - Non-Current
Derivative assets towards Foreign Exchange Forward Contracts 1.70 0.03
As at As at
31 March
st
31 March
st
Derivative Asset towards call option to buy subsidiary shares 0.24 -
2020 2019
Other Receivables* 0.47 3.64
Unsecured, Considered good
TOTAL 8.23 9.25
Loans and Advances to Employees & Others* 4.04 2.94
*Includes Windmill income
TOTAL 4.04 2.94
*Loans given for business purpose.
122

14 Cash and Cash Equivalents 17 Income Tax Asset (net) - Non-Current

2020 2019 2020 2019
Cash and Cash Equivalents Advance Payment of Taxes (net of provisions 1,881.72 crores) 105.80 98.53
Cash on Hand 0.08 0.13 (net of provisions 1,471.78 crores as at 31st March 2019)
Cheques on Hand 0.85 27.81 TOTAL 105.80 98.53
Balance with banks

18 Other Non-Current Assets
In Current Account 52.12 12.55
As at As at
In EEFC Account 11.12 19.75
In Fixed Deposit Accounts with original maturity of 3 months or less 500.00 - 2020 2019
TOTAL 564.17 60.24 Unsecured, Considered good
Cash and Cash Equivalents (as per Statement of Cash Flows) 564.17 60.24 Capital Advances 45.39 19.41
Prepaid Expenses 0.24 40.29
15 Bank Balances other than Cash and Cash Equivalents above Balance with Government Authorities* 18.94 22.75
As at As at TOTAL 64.57 82.45
2020 2019 * Includes amounts paid under protest against Sales Tax claims disputed by the Company (shown under contingent liabilities),
Excise Duty rebates, GST receivable, etc.
Other Bank Balance
In Fixed Deposit Accounts with original maturity of more than 12 months (refer Note a) - 0.06 19 Other Current Assets
In Fixed Deposit Accounts with original maturity of more than 3 months but upto 1.42 55.03 As at As at
12 months (refer Note a) 31st March 31st March
Earmarked Account 2020 2019
Dividend Payment Bank Account 3.25 1.85 Export Benefits receivable
TOTAL 4.67 56.94 Unsecured, Considered good 11.05 11.58
a. Includes Fixed Deposit under lien 0.99 2.55 Considered doubtful - 0.20
11.05 11.78
16 Inventories (at lower of cost and net realisable value) Less: Allowance for doubtful balances - (0.20)
As at As at 11.05 11.58
2020 2019 Balances with Government Authorities*
Raw Material and Packing Material 315.89 292.03 Unsecured, Considered good 96.51 84.92
Work-in-Progress 71.51 78.20 Considered doubtful 0.08 0.07
Finished Goods 269.00 287.50 96.59 84.99
Stock-in-Trade (acquired for trading) 67.91 70.70 Less: Allowance for doubtful balances (0.08) (0.07)
Stores and Spares 6.18 5.87 96.51 84.92
TOTAL 730.49 734.30 Advances to vendors
Goods-in-Transit included above Unsecured, Considered good 37.13 22.89
Raw Material and Packing Material 32.94 30.21 Considered doubtful 0.01 0.01
Work-in-Progress 1.58 1.80 37.14 22.90

Finished Goods 22.06 39.41

Stock-in-Trade (acquired for trading) 9.18 8.40 37.13 22.89
TOTAL 65.76 79.82 Prepaid Expenses 8.02 7.23
a. The cost of inventories recognised as an expense during the year in respect of continuing operations was 2,936.39 Others** 18.99 0.25
crores ( 3,064.22 crores for the year ended 31st March 2019) Less : Impairment in Share Application Money - Pidilite Chemical PLC (refer Note 38) (0.39) -
b. The cost of inventories recognised as an expense includes 0.37 crores in respect of write-downs of inventory to net 18.60 0.25
realisable value ( 0.27 crores for the year ended 31st March 2019)
TOTAL 171.31 126.87
c. The mode of valuation of inventories has been stated in Note 2.12.
* Includes input tax credit, VAT/ GST receivable, etc.
** Mainly consists of Share Application Money
124

( in crores)
20 Equity Share Capital

As at As at d. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back
31st March 31st March during the period of five years, immediately preceding the reporting date:
2020 2019
As at As at
Authorised Capital: 31st March 31st March
2020 2019
70,00,00,000 Equity Shares of 1 each 70.00 70.00
Number of Number of
(70,00,00,000 Equity Shares of 1 each as at 31 March 2019)
st Shares Shares
TOTAL 70.00 70.00 Equity Shares
Issued, Subscribed and Paid up Capital:

Buy-back of Shares 50,00,000 50,00,000
50,81,23,780 Equity Shares of 1 each, fully paid up 50.81 50.80
(50,79,78,280 Equity Shares of 1 each as at 31st March 2019)

e. Equity Shares reserved for issuance under Employee Stock Option Scheme/Plan:
TOTAL 50.81 50.80
As at As at
2020 2019
a. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period
Number of Number of
Number of in crores Shares Shares
Shares
Equity Shares of 1 each under Employee Stock Option Scheme - 2012 34,200 34,200
Balance as at 1st April 2018 50,78,10,330 50.78
Shares issued during the year on exercise of options under Employee Stock Option 1,19,400 0.01 Equity Shares of 1 each under Employee Stock Option Plan - 2016 41,13,500 41,14,100
Scheme - 2012

Shares issued during the year on exercise of options under Employee Stock Option 48,550 0.00
Plan - 2016*
Balance as at 31st March 2019 50,79,78,280 50.80
Shares issued during the year on exercise of options under Employee Stock Option - -
Scheme - 2012
Shares issued during the year on exercise of options under Employee Stock Option 1,45,500 0.01
Plan - 2016
* Issue of equity shares under Employee Stock Option Plan - 2016 amounts to 48,550 during the year 2018-19.
b. Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of 1 per share. Each holder of equity shares is entitled to one
vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of
all preferential amounts, in the proportion of their shareholding.
During the year ended 31st March 2020, the Company had paid Final Dividend of 6.50 per equity share of 1 each for the financial
year 2018-19 and Interim Dividend of 7.00 per equity share of 1 each for the financial year 2019-20.
During the year ended 31st March 2019, the Company had paid Final Dividend of 6.00 per equity share of 1 each for the financial
year 2017-18.
c. Details of shareholders holding more than 5% shares in the Company:

As at As at
Number of % of Number of % of
Shares held Holding Shares held Holding
Shri Madhukar Balvantray Parekh 5,20,51,286 10.24 5,27,62,286 10.39
Shri Narendrakumar Kalyanji Parekh 5,42,73,688 10.68 5,42,73,688 10.69
Shri Ajay Balvantray Parekh 4,74,33,489 9.34 4,74,33,489 9.34
Shri Sushilkumar Kalyanji Parekh 4,13,97,646 8.15 4,18,17,646 8.23
126 Devkalyan Sales Pvt Ltd 2,62,24,280 5.16 2,62,24,280 5.16


21 Other Equity 21.4 Cash Subsidy Reserve
2020 2019 2020 2019
Capital Reserve 0.34 0.34 Balance at the beginning of the year 0.95 0.95
Add/ (Less): Additions/ (Deductions) during the year - -
Securities Premium Reserve 23.21 10.01
Closing Balance 0.95 0.95
Capital Redemption Reserve 0.50 0.50
Cash Subsidy Reserve represents subsidies received from state government. It is not available for distribution as dividend to
Cash Subsidy Reserve 0.95 0.95 shareholders.
Share Options Outstanding Account 10.89 9.65 21.5 Share Options Outstanding Account
General Reserve 1,335.38 1,335.38 As at As at

Retained Earnings 3,042.74 2,779.09 2020 2019
Employees Stock Options Outstanding Balance at the beginning of the year 29.38 12.54
TOTAL 4,414.01 4,135.92
Add : Options granted during the year 1.72 27.87
Less : Transferred to Securities Premium on Options exercised during the year (13.20) (10.01)
21.1 Capital Reserve
Less : Lapsed during the year (0.95) (1.02)
As at As at
31st March 31st March Closing Balance (A) 16.95 29.38
2020 2019 Deferred Employees Stock Options Cost Balance at the beginning of the year (19.73) (3.51)
Balance at the beginning of the year 0.34 0.34 Less : Options granted during the year (1.72) (27.87)
Add/ (Less): Additions/ (Deductions) during the year - - Add : Amortised and exercised during the year 14.84 11.15
Add : Lapsed during the year 0.55 0.50
Closing Balance (B) (6.06) (19.73)
Capital Reserve represents excess of net assets acquired in past amalgamation. It is not available for the distribution to
shareholders as dividend. Closing Balance (A+B) 10.89 9.65
The above reserve relates to share options granted by the Company to its employees under its employee share option plan.
Further information about share-based payments to employees is set out in Note 46.
21.2 Securities Premium Reserve
21.6 General Reserve
As at As at
31st March 31st March As at As at
2020 2019 31st March 31st March
2020 2019
Balance at the beginning of the year 10.01 -
Balance at the beginning of the year 1,335.38 1,335.38
Add: Premium on Shares issued against ESOP 13.20 10.01
Add/ (Less) : Additions/ (Deductions) during the year - -
Closing Balance 23.21 10.01 Closing Balance 1,335.38 1,335.38
Security Premium Account is created when shares are issued at premium. The Company may issue fully paid-up bonus General Reserve is created by a transfer from one component of equity to another and is not an item of Other Comprehensive
shares to its members out of the Securities Premium Reserve Account, and Company can use this reserve for buy-back Income. The same can be utilised by the Company in accordance with the provisions of the Companies Act, 2013.
of shares. This reserve is utilised in accordance with the provisions of the Companies Act, 2013.
21.7 Retained Earnings
21.3 Capital Redemption Reserve As at As at

As at As at 2020 2019
2020 2019 Balance at the beginning of the year 2,779.09 2,166.95
Balance at the beginning of the year 0.50 0.50 Add : Profit for the year 1,101.62 979.44
Less : Payment of Final Dividend (330.18) (304.69)
Add/ (Less): Additions/ (Deductions) during the year - -
Payment of Interim Dividend for the year 2019-20 (355.61) -
Tax on Dividend paid (140.97) (59.63)
The Company has recognised Capital Redemption Reserve on buy-back of equity shares from its General Reserve.
Other Comprehensive Income for the year, net of income tax (11.20) (2.98)
The amount in Capital Redemption Reserve is equal to the nominal amount of equity shares bought back. The reserve
can be utilised in accordance with the provisions of the Companies Act, 2013. Closing Balance 3,042.74 2,779.09
This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations.
This Reserve can be utilised in accordance with the provisions of the Companies Act, 2013.
128

22 Trade Payables 26 Provisions - Current

2020 2019 2020 2019
Trade Payables Provision for Employee Benefits

Total outstanding dues of micro enterprises and small enterprises (refer Note 50) 9.30 20.96 Gratuity (net) (refer Note 45) 1.83 4.39
Total outstanding dues of creditors other than micro enterprises and small enterprises 485.51 428.19 Compensated Absences 9.73 9.98
TOTAL 494.81 449.15 Anniversary Awards 0.16 0.18
Premature Death Pension Scheme 0.01 0.01

23 Other Financial Liabilities - Non-Current
Total Disability Pension Scheme 0.05 0.04
As at As at
31 March
st
31 March
st
TOTAL 11.78 14.60
2020 2019
Employee related liabilities 0.47 0.82

27 Deferred Tax Liabilities (net)
Derivative liability towards put option to buy subsidiary shares - 42.20
As at As at
Others* 6.79 2.99 31st March 31st March
2020 2019
TOTAL 7.26 46.01
Tax effect of items constituting Deferred Tax Assets (refer Note 48) (38.60) (28.26)
* Includes retention payable on capital goods
Tax effect of items constituting Deferred Tax Liabilities (refer Note 48) 114.57 141.23
24 Other Financial Liabilities- Current TOTAL 75.97 112.97

As at As at
2020 2019 28 Other Current Liabilities
Unclaimed Dividend 3.25 1.85 As at As at
Payables on purchase of assets 6.35 6.55 2020 2019
Trade/ Security Deposit received 123.86 109.89 Statutory remittances 63.57 43.72
Liabilities for expenses 349.78 289.51 Advance from customers 24.64 9.77
Employee related liabilities 18.43 22.20 Other Liabilities 1.82 3.93
Derivative liabilities towards Foreign Exchange Forward Contracts 0.42 0.96 TOTAL 90.03 57.42
Derivative liability towards put option to buy subsidiary shares 34.83 -
Others* 15.50 9.89 29 Current Tax Liabilities (net)

TOTAL 552.42 440.85 As at As at
* Includes retention payable on capital goods
2020 2019
Provision for Tax (net of Advance Tax 678.22 crores) 7.74 7.74
25 Provisions - Non-Current
(net of Advance Tax 678.22 crores as at 31st March 2019)
As at As at
TOTAL 7.74 7.74

2020 2019
Provision for Employee Benefits
Compensated Absences 38.20 31.91
Anniversary Awards 0.82 1.03
Total Disability Pension Scheme 0.32 0.27
TOTAL 40.89 34.55

130

30 Revenue from Operations 31 Other Income

For the For the For the For the
year ended year ended year ended year ended
2020 2019 2020 2019
Revenue From Operations* Interest on:
Sale of Products 6,290.43 6,047.40 Bank Deposit (at amortised cost) 2.48 2.02
TOTAL (A) 6,290.43 6,047.40 Overdue Trade Receivables 0.05 0.56
Other Operating Revenue Tax Free Bonds (at FVTPL) 3.26 2.03
Scrap Sales 11.37 12.93 Income Tax Refund - 11.26
Export Incentives 19.07 15.61 Others 0.14 0.44
Dividend on:
GST/ Excise Refund 3.40 8.60
Investments in Mutual Funds and Others (at FVTPL) 11.59 10.02
Others 8.32 9.34
Long-term Investments in Associate (at cost) 1.79 2.16
TOTAL (B) 42.16 46.48
Long-term Investments in Subsidiaries (at cost) - 14.74
Revenue from operations (A+B) 6,332.59 6,093.88
Other Non-Operating Income:
*The Company disaggregated revenues from contracts with customers by customer type and by geography. The Company
believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows Windmill Income 3.21 1.44
are affected by industry, market and other economic factors. For georgaphywise and customerwise breakup of revenue,
refer Note 42. Profit on Sale/Transfer of Assets (refer Note 44) 2.67 33.41
Further, the Company derives its revenue from the transfer of goods at a point in time for its major service lines. This is Allowance for Doubtful Debts written back 5.80 -
consistent with the revenue information that is disclosed for each reportable segment under Ind AS 108 ‘Operating Segment’.
Royalty & Technical Knowhow Income 4.17 3.51
Reconciliation of revenue recognised with the contracted price is as follows:
Insurance claim received 0.46 0.59
For the For the
year ended year ended Liabilities no longer required written back 0.81 16.21
2020 2019 Rental Income from Operating Leases 1.38 2.22
Contracted Price 6,893.41 6,569.37 Net gain arising on financial assets designated as at FVTPL 109.52 87.64
Reduction towards variable consideration components (602.98) (521.97) Miscellaneous Income 4.53 3.26
Revenue Recognised 6,290.43 6,047.40 TOTAL 151.86 191.51
The reduction towards variable consideration includes discounts, rebates, incentives, promotional couponing and schemes.
32 Cost of Materials Consumed
For the For the
year ended year ended
2020 2019
Inventory at the beginning of the year 292.03 264.59
Add : Purchases 2,544.56 2,791.09

2,836.59 3,055.68
Less : Inventory at the end of the year (315.89) (292.03)
TOTAL 2,520.70 2,763.65
132

33 Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade 37 Other Expenses

31st March 31st March 31st March 2020 31st March 2019
2020 2019 Consumption of Stores and Spares 35.45 27.71
Inventories at the end of the year Clearing and Forwarding Charges 272.30 254.71
Power and Fuel 57.94 58.60
Stock-in-Trade 67.91 70.70
Contract Labour 66.12 51.24
Work-in-Progress 71.51 78.20
Water Charges 3.84 3.13
Finished Goods 269.00 287.50 Rent (refer Note 51) 11.96 34.28
(A) 408.42 436.40 Rates and Taxes 2.71 4.34
Inventories at the beginning of the year Insurance 7.42 3.39
License fees 0.77 0.75
Repairs :
Buildings 8.90 9.13
Finished Goods 287.50 262.30 18.10
Machinery 16.49
(B) 436.40 362.59 Others 7.89 8.94
TOTAL (B-A) 27.98 (73.81) 34.89 34.56
Directors' Fees 0.27 0.29
34 Employee Benefits Expense Advertisement and Publicity 266.42 215.67
Legal, Professional and Consultancy fees 47.46 38.80
For the For the
year ended year ended Communication Expenses 6.71 13.53
31st March 31st March Printing and Stationery 4.87 5.90
2020 2019
Travelling and Conveyance Expenses 105.25 97.32
Salaries and Wages 667.83 605.92 Bad Debts 3.49 4.02
Contribution to Provident and Other Funds (refer Note 45) 36.85 29.92 Allowance for Doubtful Debts - 4.18
Share based payments to employees (net of recovery from subsidiaries) (refer Note 46) 14.31 10.45 Processing and Packing Charges 72.69 71.60
Sales Commission 3.95 4.08
Staff Welfare Expenses 17.90 17.25
Payments to Auditor (refer note a) 1.35 1.16
TOTAL 736.89 663.54
Donations 0.11 0.85
Corporate Social Responsibility Expenses (refer Note 52) 26.30 23.50
35 Finance Costs
Loss on disposal of Property, Plant and Equipment - 2.18
For the For the Net Loss on Foreign Currency Transactions and Translation (refer Note 40) 1.86 6.32
Miscellaneous Expenses 141.62 111.90
2020 2019 TOTAL 1,175.75 1,074.01
Interest expense on:

a. Details of Payments to Auditor (net of GST)
Bank Cash Credit Account - 0.08
For the For the
Lease Liability (refer Note 51) 6.08 - year ended year ended
Dealer Deposits & others 7.32 7.06
a) Auditors 1.04 0.90
TOTAL 13.40 7.14 b) Tax Matters 0.19 0.16
c) Other Services 0.10 0.09
36 Depreciation, Amortisation and Impairment Expense
d) Reimbursement of Expenses 0.02 0.01

For the For the TOTAL 1.35 1.16
2020 2019 38 Exceptional Items
For the For the
Depreciation on Property, Plant and Equipment (refer Note 4) 94.08 85.49
Depreciation on Right of Use of Assets (refer Note 5 and 51) 24.19 - 31st March 2020 31st March 2019
Impairment in value of Asset Held for Sale [refer Note 53(h)] 55.19 -
Amortisation of Other Intangible Assets (refer Note 6) 7.52 8.42
Impairment in value of Investment in a subsidiary [refer Note 7 (A)(ii) (a) and Note 19] 4.09 -
Impairment in value of Capital Work-in-Progress (refer Note 4) - 5.92
TOTAL 59.28 -
134 TOTAL 125.79 99.83

42 Segment information
( in crores)
Business Segment: The Company operates in two business segments namely Consumer & Bazaar (C&B) and Business to Business
39 Contingent Liabilities and Commitments (B2B). Consumer & Bazaar segment covers sale of products mainly to end consumers which are retail users such as carpenters,
painters, plumbers, mechanics, households, students, offices, etc. Sale consists of mainly Adhesives, Sealants, Art and craft
As at As at Materials and Construction and paint Chemicals. B2B covers sale of products to end customers which are mainly large business
31st March 31st March users. This includes Industrial Products (IP) such as adhesives, synthetic resins, organic pigments, pigment preparations,
2020 2019 construction chemicals (projects), surfactants, etc. and caters to various industries like packaging, textiles, paints, joineries,
printing inks, paper, leather, etc. Others includes sale of speciality acetates, raw materials etc.
A) Contingent liabilities not provided for: During the year, the Company has re-organised its internal reporting, whereby the Chief Operating Decision Maker (CODM)
evaluates the business activities and operating results of IP segments and certain business units which was until previous year
1. Claims against the Company not acknowledged as debts comprise: shown under C&B segment, are now reclassified under new B2B segment, based on customer type. Therefore, in accordance
a) Income Tax demand against the Company not provided for and relating to issues of 58.50 30.57 with ‘Ind AS 108 – Operating Segments’, the segment information for C&B and IP segments pertaining to these business units in
respect of previous year reported have been regrouped, respectively to C&B and B2B segments. Operating Segment disclosures
deduction and allowances in respect of which the Company is in appeal
are consistent with the information provided to and reviewed by the Managing Director (Chief Operating Decision Maker)
b) Excise Duty and Service Tax claims disputed by the Company relating to issues of 22.13 12.18 ( in crores)
classifications
c) Sales Tax (VAT, CST, Entry Tax and GST) claims disputed by the Company relating to 165.92 176.25 Business Segments Year 2019-20 Year 2018-19
issues of declaration forms and classifications Consumer Business Others Total Consumer Business Others Total
& Bazaar to & Bazaar to
d) Other Matters (relating to disputed Electricity Duty, Gram Panchayat Tax, Open Access 3.14 3.22
Business Business
Charges, etc.)
Revenue
2. a) Guarantees given by Banks on behalf of Government and others* 47.86 48.86
Segment Revenue 4,999.82 1,377.87 76.45 6,454.14 4,817.85 1,309.52 89.86 6,217.23
b) Guarantees given by Company on behalf of the Subsidiaries to Banks*
Less: Inter Segment Revenue (7.05) (113.58) (0.92) (121.55) (6.28) (115.40) (1.67) (123.35)
Pulvitec do Brasil Industria e Comercio de Colas e Adesivos Ltda 25.64 16.60 (at cost plus fixed margin)
Net Revenue 4,992.77 1,264.29 75.53 6,332.59 4,811.57 1,194.12 88.19 6,093.88
Pidilite Bamco Ltd 3.24 2.97
Revenue based on geography
Pidilite MEA Chemicals LLC (Previously known as Jupiter Chemicals LLC) 41.07 37.67
India 5,638.05 5,487.10
Pidilite Lanka Private Limited 33.15 30.40
Outside India 694.54 606.78
Bamco Supply & Services Ltd 1.09 1.00
Segment Result 1,531.40 257.42 (4.55) 1,784.27 1,416.91 186.31 (7.99) 1,595.23
* Guarantees given are for business purpose. Unallocable Expenses (529.68) (362.62)
Note: The Company, being the holding/ultimate holding company, will extend financial support to Unallocable Income 117.17 107.76
its subsidiaries as and when required.
Operating Income 1,371.76 1,340.37
B) Commitments: Finance Cost (13.40) (7.14)
Interest/ Dividend Income 19.31 43.22
a) Estimated amount of contracts, net of advances, remaining to be executed for the 204.00 68.20
acquisition of Property, Plant and Equipment, investments and not provided for Exceptional Items 59.28 -
b) For other commitments, refer Note 47(E)(ii) for financial instruments, Note 51 for leases Profit Before Tax 1,436.95 1,376.45
and Note 53 (a)(i) & Note 54 for committed investment in subsidiaries.
Tax Expense (335.33) (397.01)
c) The Supreme Court in a earlier judgement has held that provident fund contributions are
Profit for the year 1,101.62 979.44
payable on basic wage, dearness allowances and all other monthly allowances, which
are universally, necessarily and ordinarily paid to all the employees in the establishment Other Comprehensive Income (11.20) (2.98)
across the board. There are numerous interpretative issues relating to the judgement. As Total Comprehensive Income 1,090.42 976.46
such, the Company has, based on legal advice and as a matter of caution, made provision
for an estimated amount on a prospective basis. The above includes:
Depreciation, Amortisation and 49.52 23.62 3.87 77.01 43.92 19.84 2.81 66.57
The net amount of exchange differences debited to Statement of Profit and Loss is 1.86 crores ( 6.32 crores for the year Impairment (allocable)
40 ended 31st March 2019)
Depreciation, Amortisation and 48.78 33.26
Impairment (unallocable)
41 Disclosure as per Regulation 34(3) read with Schedule 5 of Listing Regulations with the Stock Exchanges Capital Expenditure (including Capital 232.47 101.66 6.14 340.27 80.25 54.57 11.49 146.31
Work-in-Progress) (allocable)
a) Loans and Advances in the nature of loans given to subsidiaries, associates, firms/ companies in which directors
Capital Expenditure (unallocable) 31.88 39.92
are interested:
There is no transaction with single external customer which amounts to 10% or more of the Company’s revenue
Name of the Company As at 31st March 2020 As at 31st March 2019
Segment Assets & Liabilities 31st March 2020 31st March 2019
Relationship Amount Maximum Amount Maximum
Outstanding Balance Outstanding Balance Consumer Business Others Total Consumer Business Others Total
Outstanding Outstanding & Bazaar to & Bazaar to
during during Business Business

the year the year Segment Assets 2,256.02 786.05 76.36 3,118.43 1,851.65 683.62 79.24 2,614.51
Unallocable Assets 2,700.63 2,735.50
Pagel Concrete Technologies Pvt Ltd Subsidiary 0.33 0.33 0.33 0.33 Total Assets 5,819.06 5,350.01
India 5,656.43 5,217.92
Notes:
a) Loans and Advances shown above, fall under the category of ‘Loans & Advances’ in the nature of loans where there
is no repayment schedule and re-payable on demand. Segment Liabilities 905.78 289.00 4.77 1,199.55 705.15 252.84 10.99 968.98
Unallocable Liabilities 154.69 194.31
b) Loans and Advances referred above are not bearing any interest and are fully provided.
Total Liabilities 1,354.24 1,163.29
Other Information
136 Capital Employed 4,464.82 4,186.72
All the Non-Current Assets of the Company are located in India

44 Related Party Disclosures
43 Earnings Per Share (EPS) Related Party Disclosures as required by Ind-AS 24, “Related Party Disclosure” are given below:
The following reflects the Profit and Share data used in the Basic and Diluted EPS computations: (i) Relationships:
a. Nitin Enterprises Subsidiary
For the year For the year
ended ended b. Fevicol Company Ltd Subsidiary
31st March 31st March c. Bhimad Commercial Company Pvt Ltd Subsidiary
2020 2019
d. Madhumala Ventures Pvt Ltd Subsidiary
Basic: (Formerly known as Madhumala Traders Pvt Ltd)
e. Pagel Concrete Technologies Pvt Ltd Subsidiary
Total Operations for the year
f. Building Envelope Systems India Ltd Subsidiary
Profit for the year ( in crores) 1,101.62 979.44 g. Nina Percept Private Limited (Formerly known as Subsidiary
Nina Waterproofing Systems Private Limited) (refer Note 53 (b))
h. Hybrid Coatings Subsidiary
i. Pidilite International Pte Ltd Subsidiary
Weighted average number of equity shares in calculating basic EPS 50,79,93,224 50,78,95,621
j. Pidilite Middle East Ltd Subsidiary
Par value per share ( ) 1.00 1.00 k. Pidilite USA Inc Subsidiary
l. PIL Trading (Egypt) Company Subsidiary
Earning per share (Basic) ( ) 21.69 19.28
m. PT Pidilite Indonesia Subsidiary
n. Pidilite Speciality Chemicals Bangladesh Pvt Ltd Subsidiary
o. Pidilite Innovation Centre Pte Ltd Subsidiary
Diluted:
p. Pidilite Industries Egypt - SAE Subsidiary
Profit for the year ( in crores) 1,101.62 979.44 q. Pidilite Bamco Ltd Subsidiary
r. Bamco Supply and Services Ltd Subsidiary
s. Pulvitec do Brasil Industria e Comercio de Colas e Adesivos Ltda Subsidiary
Weighted average number of equity shares in calculating basic EPS 50,79,93,224 50,78,95,621 t. Pidilite MEA Chemicals LLC Subsidiary
Add: Effect of Employee Stock Options 1,70,850 3,18,250 u. Pidilite Industries Trading (Shanghai) Co. Ltd Subsidiary
v. Pidilite Chemical PLC Subsidiary
Weighted average number of equity shares in calculating diluted EPS 50,81,64,074 50,82,13,871 w. Pidilite Lanka (Pvt) Ltd Subsidiary
x. ICA Pidilite Pvt Ltd Subsidiary
y. Nebula East Africa Pvt Ltd Subsidiary
Par value per share ( ) 1.00 1.00 z. Nina Lanka Construction Technologies (Pvt) Ltd Subsidiary
Earning per share (Diluted) ( ) 21.68 19.27 aa. Cipy Polyurethanes Pvt Ltd Subsidiary
ab. Pidilite Ventures LLC Subsidiary
ac. Pidilite East Africa Limited Subsidiary
ad. Pidilite Grupo Puma Pvt Ltd ( w.e.f. 16th September 2019) Subsidiary
ae. Pidilite C-Techos Pvt Ltd ( w.e.f. 18th September 2019) Subsidiary
af. Pidilite Litokol Pvt Ltd ( w.e.f. 7th October 2019) Subsidiary
ag. Pidilite Grupo Puma Manufacturing Ltd (w.e.f. 13th January 2020) Subsidiary
ah. Nina Percept (Bangladesh) Pvt Ltd ( w.e.f. 29th January 2020) Subsidiary
ai. Pidilite C-Techos Walling Ltd ( w.e.f. 5th March 2020) Subsidiary
aj. Vinyl Chemicals (India) Ltd Associate
ak. Plus Call Technical Services LLC Substantial Interest in Voting Power (Joint Venture)
al. Parekh Marketing Ltd Significant Influence of KMP
am. Pargro Investment Pvt Ltd Significant Influence of KMP
an. Kalva Marketing and Services Ltd Significant Influence of KMP

(ii) Key Management Personnel (KMP):
a. Shri M B Parekh Executive Chairman
b. Shri Bharat Puri Managing Director
c. Shri A B Parekh Whole Time Director
d. Shri A N Parekh Whole Time Director
e. Shri Sabyasachi Patnaik (upto 31 March 2020)
st
Whole Time Director
f. Shri Debabrata Gupta (from 1st March 2020) Whole Time Director
(iii) Close member of Key Management Personnel:
138 a. Smt Mala M Parekh Wife of Executive Chairman

( in crores)
44 (iv) Transactions with Related Parties for the year ended 31st March 2020 are as follows:
Nature of Transaction For the year ended 31st March 2020 For the year ended 31st March 2019
( in crores) Subsidiary Associate KMP/ Total Subsidiary Associate KMP/ Total
Nature of Transaction For the year ended 31 March 2020
st
For the year ended 31 March 2019
st Significant Significant
Influence of Influence of
Subsidiary Associate KMP/ Total Subsidiary Associate KMP/ Total KMP/Close KMP/Close
Significant Significant member of member of
Influence of Influence of KMP KMP
KMP/Close KMP/Close
member of member of e. Purchase of Goods
KMP KMP Vinyl Chemicals (India) Ltd - 320.83 - 320.83 - 552.41 - 552.41
a. Sales and Related Income Nitin Enterprises 39.51 - - 39.51 55.96 - - 55.96
ICA Pidilite Pvt Ltd 47.23 - - 47.23 45.58 - - 45.58
Parekh Marketing Ltd - - 73.97 73.97 - - 98.70 98.70
Cipy Polyurathanes Pvt Ltd 3.22 - - 3.22 - - - -
Pidilite MEA Chemicals LLC 55.35 - - 55.35 47.86 - - 47.86 Hybrid Coatings 2.72 - - 2.72 2.35 - - 2.35
Nina Percept Private Limited 13.36 - - 13.36 32.62 - - 32.62 Building Envelope Systems India Ltd 2.02 - - 2.02 2.07 - - 2.07
Pidilite Speciality Chemicals 26.44 - - 26.44 19.01 - - 19.01 Sub-Total (e) 94.70 320.83 - 415.53 105.96 552.41 - 658.37
Bangladesh Pvt Ltd f. Royalty Paid
Pidilite Lanka (Pvt) Ltd 9.81 - - 9.81 10.72 - - 10.72 Pidilite Innovation Centre Pte Ltd 2.54 - - 2.54 2.37 - - 2.37
Pidilite Industries Egypt - SAE 8.40 - - 8.40 5.52 - - 5.52 Sub-Total (f) 2.54 - - 2.54 2.37 - - 2.37
Pidilite USA Inc 5.02 - - 5.02 4.92 - - 4.92 g. Expense for services received
Pidilite USA Inc 14.28 - - 14.28 15.44 - - 15.44
Pidilite Innovation Centre Pte Ltd 3.92 - - 3.92 4.16 - - 4.16
Cipy Polyurathanes Pvt Ltd 0.05 - - 0.05 - - - -
PT Pidilite Indonesia 0.71 - - 0.71 0.71 - - 0.71
PIL Trading (Egypt) Company 0.66 - - 0.66 1.53 - - 1.53 Pidilite Industries Trading (Shanghai) 0.72 - - 0.72 0.63 - - 0.63
Pidilite Bamco Ltd 0.24 - - 0.24 0.80 - - 0.80 Co. Ltd
Pidilite Chemical PLC 0.14 - - 0.14 0.14 - - 0.14
Sub-Total (g) 19.77 - - 19.77 21.08 - - 21.08
Sub-Total (a) 120.28 - 73.97 194.25 125.47 - 98.70 224.17
h. Investment in Share Capital
b. Royalty and Technical Knowhow Received
ICA Pidilite Pvt Ltd - - - - 26.64 - - 26.64
Pidilite Speciality Chemicals 2.21 - - 2.21 1.83 - - 1.83 Pulvitec do Brasil Industria e - - - - 9.35 - - 9.35
Bangladesh Pvt Ltd Comercio de Colas e Adesivos Ltda
Pidilite MEA Chemicals LLC 0.88 - - 0.88 0.83 - - 0.83 Pidilite Ventures LLC - - - - 7.41 - - 7.41
Pidilite Industries Egypt - SAE 0.75 - - 0.75 0.58 - - 0.58 Pidilite Middle East Ltd - - - - 5.31 - - 5.31
Pidilite International Pte Ltd 18.03 - - 18.03 4.16 - - 4.16
Pidilite Bamco Ltd 0.17 - - 0.17 0.16 - - 0.16
Madhumala Ventures Pvt Ltd 126.49 - - 126.49 - - - -
Bamco Supply and Services Ltd 0.11 - - 0.11 0.08 - - 0.08
Pidilite Litokol Pvt Ltd 0.60 - - 0.60 - - - -
Nebula East Africa Pvt.Ltd. 0.05 - - 0.05 0.04 - - 0.04 Pidilite Industries Egypt - SAE 0.32 - - 0.32 - - - -
Sub-Total (b) 4.17 - - 4.17 3.52 - - 3.52 Pidilite Grupo Puma Mfg Ltd 0.01 - - 0.01 - - - -
c. Income from Services Rendered Pidilite Chemical PLC 0.74 - - 0.74 - - - -
Nina Percept Private Limited 3.17 - - 3.17 3.68 - - 3.68 Cipy Polyurethanes Pvt Ltd - - - - 8.16 - - 8.16
ICA Pidilite Pvt Ltd 0.14 - - 0.14 0.96 - - 0.96 Sub-Total (h) 146.19 - - 146.19 61.03 - - 61.03
i. Profit on Sale/Transfer of Intangible Assets
Pidilite Lanka (Pvt) Ltd 0.25 - - 0.25 0.25 - - 0.25
ICA Pidilite Pvt Ltd - - - - 33.41 - - 33.41
Pidilite MEA Chemicals LLC 0.23 - - 0.23 0.23 - - 0.23
Sub-Total (i) - - - - 33.41 - - 33.41
Pidilite Speciality Chemicals 0.32 - - 0.32 0.21 - - 0.21 j. Sale of Fixed Asset
Bangladesh Pvt Ltd Parekh Marketing Ltd - - 0.32 0.32 - - - -
Pidilite Bamco Ltd 0.14 - - 0.14 0.16 - - 0.16 Sub-Total (j) - - 0.32 0.32 - - - -
Pidilite Industries Egypt - SAE 0.07 - - 0.07 0.07 - - 0.07 k. Rent Paid/ (Received)
Hybrid Coatings 0.06 - - 0.06 0.07 - - 0.07 Smt. Mala Parekh - - 0.71 0.71 - - 0.78 0.78
Building Envelope Systems India Ltd 0.06 - - 0.06 0.07 - - 0.07 Parekh Marketing Ltd - - 0.08 0.08 - - 0.07 0.07
ICA Pidilite Pvt Ltd 0.03 - - 0.03 - - - -
Nitin Enterprises - - - - 0.04 - - 0.04

Pargro Investment Pvt Ltd - - (0.08) (0.08) - - (0.06) (0.06)
Sub-Total (k) 0.03 - 0.71 0.74 - - 0.79 0.79
Pidilite East Africa Ltd. 0.14 0.14 - - - - l. Reimbursement of expenses made
Bamco Supply and Services Ltd* 0.00 - - 0.00 0.00 - - 0.00 Pidilite MEA Chemicals LLC 6.11 - - 6.11 8.03 - - 8.03
Sub-Total (c) 4.60 - - 4.60 5.76 - - 5.76 Parekh Marketing Ltd - - 0.03 0.03 - - - -
d. Dividend Received Pidilite Speciality Chemicals 0.16 - - 0.16 0.13 - - 0.13
Bangladesh Pvt Ltd
Vinyl Chemicals (India) Ltd - 1.79 - 1.79 - 2.16 - 2.16 PIL Trading (Egypt) Company 0.09 - - 0.09 0.06 - - 0.06
Pidilite International Pte Ltd - - - - 9.77 - - 9.77 Pidilite Innovation Centre Pte Ltd 0.10 - - 0.10 0.04 - - 0.04
Pidilite USA Inc - - - - 4.97 - - 4.97 ICA Pidilite Pvt Ltd 0.38 - - 0.38 0.02 - - 0.02
Sub-Total (d) - 1.79 - 1.79 14.74 2.16 - 16.90 Pidilite Lanka (Pvt) Ltd 0.21 - - 0.21 - - - -
140
Sub-Total (l) 7.05 - 0.03 7.08 8.28 - - 8.28

Nature of Transaction For the year ended 31st March 2020 For the year ended 31st March 2019 Nature of Transaction For the year ended 31st March 2020 For the year ended 31st March 2019
Subsidiary Associate KMP/ Total Subsidiary Associate KMP/ Total Subsidiary Associate KMP/ Total Subsidiary Associate KMP/ Total
Significant Significant Significant Significant
Influence of Influence of Influence of Influence of
KMP/Close KMP/Close KMP/Close KMP/Close
member of member of member of member of
KMP KMP KMP KMP
m. Reimbursement of expenses received ii Loans and advances
Pidilite USA Inc - - - - 0.51 - - 0.51 Pidilite Speciality Chemicals 4.22 - - 4.22 1.92 - - 1.92
Bangladesh Pvt Ltd
Pidilite MEA Chemicals LLC 0.34 - - 0.34 0.50 - - 0.50 Pidilite MEA Chemicals LLC 2.68 - - 2.68 1.53 - - 1.53
ICA Pidilite Pvt Ltd 0.11 - - 0.11 0.19 - - 0.19 Pidilite Industries Egypt - SAE 0.45 - - 0.45 0.45 - - 0.45
Pidilite Bamco Ltd 0.04 - - 0.04 0.05 - - 0.05 Pidilite Lanka (Pvt) Ltd 0.54 - - 0.54 0.37 - - 0.37
Pidilite Litokol Pvt Ltd 0.04 - - 0.04 - - - - Pagel Concrete Technologies 0.33 - - 0.33 0.33 - - 0.33
Pvt Ltd
Pidilite Grupo Puma Mfg Ltd 0.03 - - 0.03 - - - - ICA Pidilite Pvt Ltd 0.56 - - 0.56 0.29 - - 0.29
Pidilite C-Techos Walling Ltd 0.04 - - 0.04 - - - - Pidilite Bamco Ltd 0.08 - - 0.08 0.09 - - 0.09
Cipy Polyurethanes Pvt Ltd 1.07 - - 1.07 - - - - Pidilite Innovation Centre Pte Ltd 0.01 - - 0.01 - - -
Sub-Total (m) 1.67 - - 1.67 1.25 - - 1.25 Nebula East Africa Pvt Ltd 0.05 - - 0.05 0.04 - - 0.04
Bamco Supply and Services Ltd 0.03 - - 0.03 0.02 - - 0.02
n. Compensation of Key Management Personnel of the Company:
Pidilite East Africa Ltd 0.14 - - 0.14 - - - -
Remuneration/ Commission to Directors:
Pidilite Litokol Pvt Ltd 0.04 - - 0.04 - - - -
(Short Term Employee benefits)
Pidilite Grupo Puma Mfg Ltd 0.03 - - 0.03 - - - -
- Shri M B Parekh - - 4.15 4.15 - - 3.98 3.98 Pidilite C-Techos Walling Ltd 0.04 - - 0.04 - - - -
- Shri Bharat Puri - - 13.96 13.96 - - 15.42 15.42 Cipy Polyurethanes Pvt Ltd 0.43 - - 0.43 - - - -
- Shri A B Parekh - - 1.80 1.80 - - 6.58 6.58 Sub-Total 9.63 - - 9.63 5.04 - - 5.04
iii Trade Payables (net)
- Shri A N Parekh - - 5.84 5.84 - - 5.57 5.57
Vinyl Chemicals (India) Ltd - 23.07 - 23.07 - 49.95 - 49.95
- Shri Sabyasachi Patnaik - - 2.01 2.01 - - 2.45 2.45
- Shri Debabrata Gupta - - 0.29 0.29 - -
Nitin Enterprises 0.16 - - 0.16 1.50 - - 1.50
Sub-Total - - 28.05 28.05 - - 34.00 34.00 Pidilite Industries Trading 0.72 - - 0.72 1.03 - - 1.03
Share-based payments (Shanghai) Co. Ltd
Pidilite MEA Chemicals LLC 0.04 - - 0.04 - - - -
- Shri Bharat Puri - - 16.65 16.65 - - 11.03 11.03
Pidilite USA Inc 1.85 - - 1.85 - - - -
- Shri Sabyasachi Patnaik - - 0.40 0.40 - - 0.37 0.37
Pidilite Innovation Centre Pte Ltd - - - - 0.29 - - 0.29
Sub-Total - - 17.05 17.05 - - 11.40 11.40 Hybrid Coatings 0.02 - - 0.02 0.39 - - 0.39
o. Dividend Paid - - 158.25 158.25 - - 68.26 68.26 Building Envelope Systems 0.49 - - 0.49 0.21 - - 0.21
India Ltd
p. Outstanding Balances: PIL Trading (Egypt) Company 0.23 - - 0.23 0.04 - - 0.04
PT Pidilite Indonesia 0.07 - - 0.07 0.15 - - 0.15
i Trade Receivables (net)
Pidilite Chemical PLC 0.02 - - 0.02 0.03 - - 0.03
Parekh Marketing Ltd - - 12.39 12.39 - - 19.05 19.05
Parekh Marketing Ltd - - 0.01 0.01 - - - -
Pidilite MEA Chemicals LLC 22.63 - - 22.63 17.00 - - 17.00
Sub-Total 7.17 23.07 0.01 30.25 10.15 49.95 - 60.10
Nina Percept Private Limited 24.76 - - 24.76 18.71 - - 18.71 q. Corporate guarantee given to bank on behalf of
Pidilite Industries Egypt - SAE 10.60 - - 10.60 3.58 - - 3.58 Pulvitec do Brasil Industria e 25.64 - - 25.64 16.60 - - 16.60
Comercio de Colas e Adesivos Ltda

Pidilite Speciality Chemicals 2.85 - - 2.85 1.99 - - 1.99
Bangladesh Pvt Ltd Pidilite Bamco Ltd 3.24 - - 3.24 2.97 - - 2.97
Pidilite USA Inc 1.93 - - 1.93 0.94 - - 0.94 Pidilite MEA Chemicals LLC 41.07 - - 41.07 37.67 - - 37.67
(Previously known as Jupiter
Pidilite Lanka (Pvt) Ltd 3.23 - - 3.23 1.53 - - 1.53 Chemicals LLC)
Pidilite Bamco Ltd - - - - 0.26 - - 0.26 Pidilite Lanka (Pvt) Ltd 33.15 - - 33.15 30.40 - - 30.40
Pidilite Innovation Centre Pte Ltd 0.32 - - 0.32 - - - - Bamco Supply & Services Ltd 1.09 - - 1.09 1.00 - - 1.00
Sub-Total (q) 104.19 - - 104.19 88.64 - - 88.64
PIL Trading (Egypt) Company 0.44 - - 0.44 - - - -
* Amount is 41,485 ( 40,623 for the year ended 31st March 2019)
Sub-Total 66.76 - 12.39 79.15 44.01 - 19.05 63.06
142 All figures above are inclusive of GST(wherever applicable)

Valuations in respect of above have been carried out by independent actuary, as at the balance sheet date, based on the
following assumptions:
45 Employee Benefits Valuations as at
31 March 2020
st
31st March 2019
The Company has classified various employee benefits as under:
(i) Discount Rate (per annum) 6.65% 7.40%
(A) Defined Contribution Plans (ii) Rate of increase in Compensation levels (per annum) 1st yr-4%, 1st 2 yrs - 8.50%,
thereafter 6.50% thereafter 6.50%
(a) Provident Fund
(iii) Expected Rate of Return on Assets 6.65% 7.40%
(b) Superannuation Fund (iv) Attrition Rate upto 5 yrs - 13%, upto 5 yrs - 14%,
5 - 10 yrs - 5%, 5 - 10 yrs - 8%,
(c) State Defined Contribution Plans
Above 10 yrs - 5% Above 10 yrs - 5%
- Employers' Contribution to Employees' State Insurance (v) Retirement Age 60 years 60 years
- Employers' Contribution to Employees' Pension Scheme 1995 (vi) The expected rate of return on plan assets is determined after considering several applicable factors such as the
composition of the plan assets, investment/ strategy, market scenario, etc. In order to protect the capital and
- Labour Welfare Fund optimise returns within acceptable risk parameters, the plan assets are well diversified.
(vii) The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet
(d) National Pension Scheme date for the estimated term of the obligations.
(viii) The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments
and other relevant factors.
The Company has recognised the following amounts in the Statement of Profit and Loss: Gratuity fund asset is managed by Life Insurance Corporation of India and the Company has funding ratio of about
( in crores) 94% (i.e. asset over liability ratio of 94%) in the current year, and hence, there is no material risk that the Company
For the For the would be unable to meet its Gratuity liability. Also as the fund is set up as a trust, the monies as a part of the trust
year ended year ended will not flow back into the Company until the last employee of the trust is paid.
2020 2019 Note on other risks:
(i) Contribution to Provident Fund 17.56 14.23 1 Investment Risk – The funds are invested by LIC and they provide returns basis the prevalent bond yields, LIC on
an annual basis requests for contributions to the fund, while the contribution requested may not be on the same
interest rate as the bond yields provided, basis the past experience it is low risk.
(ii) Contribution to Employees’ Superannuation Fund 0.87 0.84
2 Interest Risk – LIC does not provide market value of assets, rather maintains a running statement with interest rates
(iii) Contribution to Employees’ State Insurance Scheme 0.20 0.25 declared annually – The fall in interest rate is not therefore offset by increase in value of Bonds, hence may pose
a risk.
(iv) Contribution to Employees’ Pension Scheme 1995 8.65 7.31 3 Longevity Risk – Since the gratuity payment happens at the retirement age of 60, longevity impact is very low at this
age, hence this is a non-risk.
(v) Contribution to National Pension Scheme 2.80 1.88
4 Salary Risk – The liability is calculated taking into account the salary increase, basis past experience of the
TOTAL 30.08 24.51 Company’s actual salary increases with the assumptions used, they are in line, hence this risk is low risk.
( in crores)
(B) Defined Benefit Plans
31 March 2020
st
31 March 2019
st
Gratuity Gratuity Gratuity

Funded Funded
(C) Other Long-Term Benefits (i) Changes in Present value of Obligation
(a) Compensated Absences 1 Present value of defined benefit obligation at the beginning of the year 74.28 62.72
2 Current Service Cost 6.98 5.52
(b) Anniversary Awards
3 Interest Cost 4.97 4.64
(c) Premature Death Pension Scheme 4 Actuarial (Gains)/Loss
Actuarial (gains)/ losses arising from changes in demographic assumption (0.04) 0.40
(d) Total Disability Pension Scheme
Actuarial (gains)/ losses arising from changes in financial assumption 1.28 2.33
Actuarial (gains)/ losses arising from changes in experience adjustment 13.42 1.81
5 Past Service cost - -
6 Benefits Paid (13.32) (3.14)

7 Present value of defined benefit obligation at the end of the year 87.57 74.28
(ii) Changes in Fair value of Plan Assets
1 Fair value of plan assets at the beginning of the year 69.89 64.12
2 Expected Return on Plan Assets 5.17 4.74
3 Actuarial Gain/(Loss) (0.21) 0.17
4 Employer's Contributions 16.40 4.00
5 Benefits Paid (5.51) (3.14)
6 Fair value of plan assets at the end of the year 85.74 69.89
144

( in crores)
31st March 2020 31st March 2019 46 Employee Stock Option Scheme
Gratuity Gratuity
Funded Funded a) Details of Employee Share Options
In the Annual General Meeting of the Company held on 24th July 2012, the shareholders approved the issue of 50,76,486
(iii) Net Benefit (Asset)/ Liability
equity shares under the Scheme titled “Employee Stock Option Scheme 2012” (ESOS 2012). The Board approved Employees
1 Defined benefit obligation 87.57 74.28 Stock Option Scheme covering 3,00,000 Stock options, in terms of the regulations of the Securities and Exchange Board
of India.
2 Fair value of plan assets 85.74 69.89
The ESOS 2012 allows the issue of options to Eligible employees of the Company. Each option comprises one underlying
3 Net Benefit (Asset)/ Liability (refer Note 26) 1.83 4.39 equity share. The exercise price of each option shall be 1/- per equity share. The options vest in the manner as specified in
(iv) Expenses recognised in the Statement of Profit and Loss ESOS 2012. Options may be exercised within 5 years from the date of vesting.
ESOP 2016 covering grant of 45,00,000 options (including 2,50,000 Options to be granted to Eligible Employees/
1 Current Service Cost 6.98 5.52
Directors of the subsidiary Companies) was approved by the shareholders through Postal Ballot on 2nd April 2016. Each
2 Interest cost on benefit obligation (net) (0.21) (0.11) option comprises one underlying equity share. The exercise price shall be 1/- per option or such other higher price as may
be fixed by the Board or Committee. Options to be granted under the Plan shall vest not earlier than one year but not later
3 Total Expenses recognised in the Statement of Profit and Loss 6.77 5.41
than a maximum of six years from the date of grant of such options. In the case of Eligible Employee who has not completed
(v) Remeasurement Effects Recognised in Other Comprehensive Income 3 years of employment as on date of the grant of Options then the Options which are due for vesting before completion of 3
for the year years as above, shall vest as on the completion of 3 years of employment in the Company by the Employee concerned or as
1 Actuarial (gains)/ losses arising from changes in demographic assumption (0.04) 0.40 may be approved by the Nomination and Remuneration Committee. Vested Options will have to be exercised within 3 years
from the date of respective vesting.
2 Actuarial (gains)/ losses arising from changes in financial assumption 1.28 2.33
The following share based payment arrangements were in existence during the current & prior years:
3 Actuarial (gains)/ losses arising from changes in experience adjustment 13.42 1.81
Option Series Number Grant date Vesting date Exercise Fair value
4 Return on plan asset 0.21 (0.16) price ( ) ( )
5 Recognised in Other Comprehensive Income 14.88 4.37 1 Granted on 27th July 2015-ESOS 2012 1,00,000 27.07.2015 10.04.2017 1.00 521.11
(vi) Actual return on plan assets 4.96 4.91 1,00,000 27.07.2015 10.04.2018 1.00 521.11
2 Granted on 29th January 2016-ESOS 2012 14,400 29.01.2016 29.01.2017 1.00 532.20
For the For the 14,400 29.01.2016 29.01.2018 1.00 532.20

year ended year ended 2,500 29.01.2016 29.01.2018 1.00 525.01
31st March 2020 31st March 2019 2,500 29.01.2016 29.01.2019 1.00 525.01
(vii) Sensitivity Analysis 3 Granted on 29th July 2016-ESOS 2012 6,000 29.07.2016 29.07.2017 1.00 722.31
Defined Benefit Obligation 9,000 29.07.2016 29.07.2018 1.00 722.31
Discount Rate 4 Granted on 29th July 2016-ESOP 2016 23,600 29.07.2016 29.07.2017 1.00 730.61
a Discount Rate - 100 basis points 93.28 79.42 23,600 29.07.2016 29.07.2018 1.00 730.61
5 Granted on 9 November 2016-ESOS 2012
th
1,500 09.11.2016 09.11.2017 1.00 661.86
b Discount Rate + 100 basis points 82.55 69.78
1,500 09.11.2016 09.11.2018 1.00 661.86
Salary Increase Rate
6 Granted on 8th November 2017-ESOP 2016 28,750 08.11.2017 08.11.2018 1.00 734.15
a Rate - 100 basis points 82.47 69.72
28,750 08.11.2017 08.11.2019 1.00 734.15
b Rate + 100 basis points 93.27 79.39 7 Granted on 11th April 2018-ESOP 2016 4,150 11.04.2018 11.04.2019 1.00 976.94
Note on Sensitivity Analysis 4,150 11.04.2018 11.04.2020 1.00 976.94
1 Sensitivity analysis for each significant actuarial assumptions of the Company which are discount rate and salary 8 Granted on 30th October 2018-ESOP 2016 1,33,200 30.10.2018 30.10.2019 1.00 931.19
assumptions as of the end of the reporting period, showing how the defined benefit obligation would have been 1,33,200 30.10.2018 30.10.2020 1.00 931.19
affected by changes is called out in the table above.
1,500 30.10.2018 30.10.2019 1.00 924.50
2 The method used to calculate the liability in these scenarios is by keeping all the other parameters and the data
same as in the base liability calculation except for the parameters to be stressed. 1,500 30.10.2018 30.10.2020 1.00 924.50
2,000 30.10.2018 30.10.2021 1.00 924.50
3 There is no change in the method from the previous period and the points/ percentage by which the assumptions
are stressed are same to that in the previous year. 9 Granted on 23rd January 2019-ESOP 2016 3,000 23.01.2019 23.01.2022 1.00 1112.48
3,000 23.01.2019 23.01.2023 1.00 1112.48
For the For the
4,000 23.01.2019 23.01.2024 1.00 1112.48
31st March 2020 31st March 2019 1,500 23.01.2019 29.01.2021 1.00 1127.85
(viii) Expected Future Cashflows 1,500 23.01.2019 29.01.2022 1.00 1127.85
Year 1 13.89 14.36 1,500 23.01.2019 01.02.2021 1.00 1127.85

1,500 23.01.2019 01.02.2022 1.00 1127.85
Year 2 8.35 6.08
10 Granted on 13th May 2019-ESOP 2016 2,500 13.05.2019 13.05.2020 1.00 1,124.69
Year 3 8.81 7.45
11 Granted on 29th January 2020-ESOP 2016 4,000 29.01.2020 31.01.2021 1.00 1449.90
Year 4 7.91 8.02
500 29.01.2020 31.01.2021 1.00 1444.56
Year 5 7.05 7.08 500 29.01.2020 31.01.2021 1.00 1444.56
Year 6 to 10 35.71 31.89 2,500 29.01.2020 18.11.2022 1.00 1433.92
2,500 29.01.2020 18.11.2023 1.00 1433.92
146 (ix) Average Expected Future Working Life (yrs) 11.09 10.24

b) Fair value of share options granted Inputs into the model Granted Granted on 29th January
The fair value of the stock options has been estimated using Black-Scholes model which takes into account as of grant date on 13th May 2020-ESOP 2016
the exercise price and expected life of the option, the current market price of underlying stock and its expected volatility, 2019-ESOP
expected dividends on stock and the risk free interest rate for the expected term of the option. 2016
Share price (on the date previous to grant date) 1,154.45 1,461.60 1,461.60 1,461.60
Inputs into the model Granted on Granted on Granted on Granted on Granted on Granted on
27th July 29th January 29th July 29th July 9th November 8th November Exercise price 1.00 1.00 1.00 1.00
2015-ESOS 2016-ESOS 2016-ESOS 2016-ESOP 2016-ESOS 2017-ESOP Date of vesting (1) 13.05.2020 31.01.2021 18.11.2022 31.01.2021
2012 2012 2012 2016 2012 2016
Dividend yield (%) 0.84 0.74 0.74 0.74
Share price (on the date previous to 544.95 556.80 751.60 751.60 691.40 758.55
grant date) Option life (no. of years) 2.50 4.01 5.80 4.01
Exercise price 1.00 1.00 1.00 1.00 1.00 1.00 Risk free interest rate (%) 7.03 6.15 6.39 6.15
Date of vesting (1) 10.04.2017 29.01.2017 29.07.2017 29.07.2017 09.11.2017 08.11.2018 Expected volatility (%) 23.06 23.69 24.49 23.69
Dividend yield (%) 0.91 0.93 0.79 0.74 0.89 0.85 Date of vesting (2) - - 18.11.2023 31.01.2022
Dividend yield (%) - - 0.74 0.74
Option life (no. of years) 3.50 3.50 3.50 2.50 3.50 2.50
Option life (no. of years) - - 6.80 5.01
Risk free interest rate (%) 8.07 7.80 7.39 7.28 6.73 6.69
Risk free interest rate (%) - - 6.43 6.39
Expected volatility (%) 52.17 54.46 21.51 17.70 20.94 22.12
Expected volatility (%) - - 24.56 23.76
Date of vesting (2) 10.04.2018 29.01.2018 29.07.2018 29.07.2018 09.11.2018 08.11.2019
Dividend yield (%) 0.97 1.21 0.85 0.79 0.96 0.91 c) Movements in Share Options during the year
Option life (no. of years) 4.50 4.50 4.50 3.50 4.50 3.50 Particulars During the year ended During the year ended
Options Weighted Options Weighted
Expected volatility (%) 52.17 54.46 24.25 21.51 23.94 24.01 (No.s) average (No.s) average
Date of vesting (3) - 29.01.2019 - - - - exercise exercise
price per price per
Dividend yield (%) - 1.27 - - - - option option
Option life (no. of years) - 5.50 - - - - Option outstanding at the beginning of the year
Risk free interest rate (%) - 7.80 - - - - - ESOS 2012 - 1 1,19,400 1
Expected volatility (%) - 54.46 - - - - - ESOP 2016 3,15,750 1 79,000 1
Granted during the year
Inputs into the model Granted on Granted Granted on 23rd January 2019-ESOP 2016 - ESOP 2016* 12,500 1 2,95,700 1
11th April on 30th Vested during the year - ESOS 2012 - 1 1,10,500 1
2018-ESOP October
2016 2018-ESOP Vested during the year - ESOP 2016** 1,55,850 1 47,200 1
2016 Exercised during the year - ESOS 2012 - 1 1,19,400 1
Share price (on the date previous to grant date) 1,000.15 961.55 1,152.80 1,152.80 1,152.80
Exercised during the year - ESOP 2016*** 1,45,500 1 48,550 1
Exercise price 1.00 1.00 1.00 1.00 1.00 Lapsed during the year****
Date of vesting (1) 11.04.2019 30.10.2019 23.01.2022 29.01.2021 01.02.2021 - ESOP 2016 (granted on 29th July 2016) - 1 1,000 1
Dividend yield (%) 0.62 2.54 0.84 0.84 0.84 - ESOP 2016 (granted on 8th November 2017) 2,400 1 3,500 1
Option life (no. of years) 2.50 2.50 6.00 5.02 5.02 - ESOP 2016 (granted on 11 April 2018)
th
- 1 5,000 1
Risk free interest rate (%) 7.09 8.01 7.56 7.49 7.49 - ESOP 2016 (granted on 30th October 2018) 9,500 1 900 1
Expected volatility (%) 21.65 23.20 24.34 23.87 23.86 Options outstanding at the end of the year
Date of vesting (2) 11.04.2020 30.10.2020 23.01.2023 29.01.2022 01.02.2022 - ESOP 2016 1,70,850 1 3,15,750 1
Dividend yield (%) 0.66 3.62 0.84 0.84 0.84 Options available for grant
Option life (no. of years) 3.50 3.50 7.00 6.02 6.03 - ESOS 2012 34,200 1 34,200 1
Risk free interest rate (%) 7.28 8.02 7.58 7.56 7.56 - ESOP 2016 41,13,500 1 41,14,100 1
The weighted average share price at the date of exercise for 1331.62 1239.18
Expected volatility (%) 23.59 23.24 24.37 24.32 24.30
stock options exercised during the year
Date of vesting (3) - 30.10.2021 23.01.2024 - -
Range of exercise price for options outstanding at the end of the year 1 1
Dividend yield (%) - 4.82 0.84 - -
Option life (no. of years) - 4.50 8.00 - - * Includes 1,000 options (Previous year 2,200) granted to Eligible Employees of the Subsidiary Companies.
Risk free interest rate (%) - 8.15 7.65 - - ** Includes 1100 options (Previous year 1,950) vested by Eligible Employees of the Subsidiary Companies
Expected volatility (%) - 24.34 24.40 - - *** Includes 400 options (Previous year 1,950) exercised by Eligible Employees of the Subsidiary Companies
**** Lapsed due to termination of employment with the Company.
The Company has allotted 3,300 equity shares on 10th June 2020 of face value of 1/- each under Employee Stock Option Plan -
148
2016 to the employees of the Company and its subsidiaries to whom the options were granted.

47 Financial Instruments (E) Foreign currency risk management
The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of
(A) Capital Management the reporting period are as follows:
The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while Foreign Currency Exposure Foreign Currency Exposure
maximising the return to stakeholders through the optimum utilisation of the equity balance. The capital structure of the (in FC) ( in crores)
Company consists of only equity of the Company. The Company is not subject to any externally imposed capital requirements. 31st March 31st March 31st March 31st March
2020 2019 2020 2019
(B) Categories of financial instruments
( in crores) Amounts recoverable/ (advance) in foreign currency on account of the following:
EUR 7,99,474.10 14,88,215.92 6.65 11.56
As at As at
31 March
st
31 March
st USD 1,18,56,074.29 1,49,08,116.35 89.42 103.13
2020 2019
AUD 38,745.00 - 0.18 -
Financial Assets Amounts (payable)/ advance in foreign currency on account of the following:
Measured at fair value through profit or loss (FVTPL) AED 2,36,491.04 41,460.00 0.49 0.08
Investments in Mutual funds, Preference Shares, Debentures and Bonds 1,025.81 1,515.91 AUD 1,820.00 1,820.00 0.01 0.01
Derivative assets towards Foreign Exchange Forward Contracts 1.70 0.03 BDT* 50,000.00 50,000.00 0.00 0.00
Derivative Asset towards call option to buy subsidiary shares 0.24 7.61 CHF (5,212.31) 27,261.36 (0.04) 0.19
Measured at amortised cost EUR (2,86,454.95) 3,70,602.70 (2.38) 2.88
Trade Receivables 806.63 774.98 GBP (1,65,553.39) (4,75,406.00) (1.54) (4.30)

JPY (75,78,800.00) (60,58,500.00) (0.53) (0.38)
Cash and Cash Equivalents 564.17 60.24
SGD - (89,517.00) - (0.46)
Other Bank balances 4.67 56.94
USD (1,42,44,907.61) (1,27,67,358.70) (107.44) (88.32)
Loans 29.42 18.32
ZAR 64,255.58 83,679.60 0.03 0.04
Other Financial Assets 19.41 20.12
* BDT exposure is 44,400 as at 31 March 2020 ( 41,110 as at 31 March 2019).
st st
Total Financial Assets 2,452.05 2,454.15

(i) Foreign currency sensitivity analysis
Financial Liabilities
The Company is mainly exposed to the USD, EUR and JPY. The following table demonstrates the sensitivity to a 2%
Measured at fair value through profit or loss (FVTPL) increase or decrease in the USD, EUR and JPY against INR with all other variables held constant. The sensitivity analysis is
prepared on the net unhedged exposure of the Company as at the reporting date. 2% represents management assessment
Derivative liabilities towards Foreign Exchange Forward Contracts 0.42 0.96 of reasonably possible changes in foreign exchange rates.
Derivative liability towards put option to buy subsidiary shares 34.83 42.20 ( in crores)
Measured at amortised cost (including trade payables) USD impact

Trade Payables 494.81 449.15 For the For the
Lease Liabilities 73.34 - 31 March 2020
st
31 March 2019
st
Other Financial Liabilities 524.42 443.70 Impact on profit or loss for the year (a) (0.36) 0.30
Total Financial Liabilities 1,127.82 936.01
EUR impact
(C) Financial risk management objectives
For the For the
The Company’s Corporate Treasury function provides services to the business, co-ordinates access to domestic and year ended year ended
international financial markets, monitors and manages the financial risks relating to the operations of the Company through 31st March 2020 31st March 2019
internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk, credit risk
and liquidity risk. The Company undertakes transactions denominated in foreign currencies; consequently, exposures to Impact on profit or loss for the year (b) 0.09 0.06
exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising foreign
exchange forward contracts. Compliance with policies and exposure limits is a part of Internal Financial Controls. The
Company does not enter into or trade in financial instruments, including derivative financial instruments, for speculative JPY impact
purposes. The Corporate Treasury function reports quarterly to the Company’s risk management committee, an independent For the For the
body that monitors risks and policies implemented to mitigate risk exposures. year ended year ended
(D) Market risk 31st March 2020 31st March 2019
The Company’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates (see note E Impact on profit or loss for the year (c) (0.01) (0.01)
below). The Company enters into foreign exchange forward contracts to manage its exposure to foreign currency risk of
net imports. (a) This is mainly attributable to the exposure of outstanding USD receivables and payables at the end of the
reporting period.
(b) This is mainly attributable to the exposure of outstanding EUR receivables and payables at the end of the
reporting period.
(c) This is mainly attributable to the exposure of outstanding JPY payables at the end of the reporting period.
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure
150 at the end of the reporting period does not reflect the exposure during the year.

(ii) Foreign exchange forward contracts The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted
amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest
It is the policy of the Company to enter into foreign exchange forward contracts to cover foreign currency payments (net date on which the Company will be liable to pay.
of receipts) in USD and EUR. The Company enters in to contracts with terms upto 90 days. The Company’s philosophy ( in crores)
does not permit any speculative calls on the currency. It is driven by conservatism which guides that we follow conventional
wisdom by use of Forward contracts in respect of Trade transactions. Less than 1-5 years More than 5 Total Carrying
1 year years Amount
Regulatory Requirements: The Company does alter its hedge strategy in relation to the prevailing regulatory framework
and guidelines that may be issued by RBI, FEDAI or ISDA or other regulatory bodies from time to time.
As at 31st March 2020
Mode of taking Cover: Based on the outstanding details of import payable and export receivable (in weekly baskets) the
net trade import exposure is arrived at (i.e. Imports – Exports = Net trade exposures). The net trade import exposure Non-interest bearing
arrived at is netted off with the outstanding forward cover as on date and with the surplus foreign currency balance - Trade Payables 494.81 - - 494.81 494.81
available in EEFC A/Cs. Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is - Other Financial Liabilities 393.31 7.26 - 400.57 400.57
booked. The forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity
888.12 7.26 - 895.38 895.38
are by actual delivery of the hedged currency for settling the underline hedged trade transaction.
- Lease Liabilities (undiscounted) 27.86 53.38 7.54 88.78 73.34
The following table details the foreign exchange forward contracts outstanding at the end of the reporting period Fixed interest rate instruments
Outstanding contracts Average exchange rates ( ) Foreign Currency - Trade/ Security Deposit received 123.86 - - 123.86 123.86
31st March 31st March 31st March 31st March Derviative liabilities towards foreign 0.42 - - 0.42 0.42
2020 2019 2020 2019 exchange forward contracts
Derviative liability towards put option to 34.83 - - 34.83 34.83
USD - Buy 72.30 67.18 55,78,888.40 1,03,54,128.00
buy subsidiary shares
EUR - Sell - 78.98 - 1,84,546.50 Financial guarantee contracts 104.19 - - 104.19 -
As at 31st March 2019
EUR - Buy 80.43 - 72,00,000.00 - Non-interest bearing
Outstanding contracts Nominal Amounts Fair value assets/ (liabilities) - Trade Payables 449.15 - - 449.15 449.15
( in crores) ( in crores) - Other Financial Liabilities 330.00 3.81 - 333.81 333.81
31st March 31st March 31st March 31st March 779.15 3.81 - 782.96 782.96
2020 2019 2020 2019
Fixed interest rate instruments
USD - Buy 40.61 73.09 1.70 (0.93) - Trade/ Security Deposit received 109.89 - - 109.89 109.89
Derviative liabilities towards foreign 0.96 - - 0.96 0.96
EUR - Sell* - 1.44 - (0.00)
exchange forward contracts
EUR - Buy 60.22 - (0.42) - Derviative liability towards put option to - 42.20 - 42.20 42.20
buy subsidiary shares
TOTAL 1.28 (0.93) Financial guarantee contracts 88.64 - - 88.64 -
*Fair Value Liability of EUR Sell is 25,849 as at 31 March 2019.

st (H) Fair value measurements
This note provides information about how the Company determines fair values of various financial assets and financial liabilities.
The line-items in the financial statements that include the above hedging instruments are “Other Financial Assets” of 1.70
crores ( 0.03 crores as at 31st March 2019) and “Other Financial Liabilities” of 0.42 crores ( 0.96 crores as at 31st March 2019) (i) Fair value of the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis
(refer Note 13 and 24 respectively). Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of each reporting period.
The following table gives information about how the fair values of these financial assets and financial liabilities are determined
At 31 March 2020, the aggregate amount of gain under foreign exchange forward contracts recognised in the Statement of
st
(in particular, the valuation technique(s) and inputs used).
Profit and Loss is 2.42 crores (loss of 0.93 crores as at 31st March 2019).
Financial Assets/ Financial Liabilities Fair value Fair value Valuation
(F) Credit risk management hierarchy technique(s)
As at As at and key
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. 31st March 31st March input(s)
Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial 2020 2019
instruments, other balances with banks, loans and other receivables.
1 Investment in Mutual/Alternate Various Various Level 1 Quoted bid
The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company’s
Investment Funds, Preference Shares, listed funds - listed funds - prices in active
exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is
Debentures and Bonds aggregate fair aggregate fair market
reasonably spread amongst the counterparties.
value of value of
Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited 1025.81 1,515.91
and there is no collateral held against these because the counterparties are banks and recognised financial institutions with crores crores
high credit ratings assigned by the international credit rating agencies.
2 Derivative assets and liabilities Assets - 1.70 Assets - 0.03 Level 2 Mark to market
(G) Liquidity risk management towards foreign currency forward crores crores; and values acquired
contracts Liabilities- Liabilities - from banks, with

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with 0.42 crores 0.96 crores whom the Com-
financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability pany contracts.
to sell a financial asset quickly at close to its fair value.
3 Derivative asset and liability towards Assets - 0.24 Assets - 7.61 Level 2 Fair values of
The Company has an established liquidity risk management framework for managing its short term, medium term and call and put option to buy subsidiary crores; and crores; and options using
long term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from shares Liabilities- Liabilities - black scholes
mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining 34.83 crores 42.2 crores valuation model
adequate funds in Cash and Cash Equivalents. The Company also has adequate credit facilities agreed with banks to ensure based on
that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner. Independent
(i) Liquidity risk tables Valuer's report
The following tables detail the Company’s remaining contractual maturity for its non-derivative and derivative financial (ii) Financial instruments measured at amortised cost
liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are
liabilities based on the earliest date on which the Company will be liable to pay. a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be
152
significantly different from the values that would eventually be received or settled.


48 Taxes 2 Income Taxes relating to continuing operations
1 Deferred Tax a Income Tax recognised in profit or loss
2020 2019 2020 2019
Current Tax
Deferred Tax Assets (38.60) (28.26)
In respect of the current year 368.65 438.43
Deferred Tax Liabilities 114.57 141.23
In respect of prior years - (52.87)
TOTAL 75.97 112.97
TOTAL 368.65 385.56
a 2019- 2020 Deferred Tax
Deferred Tax (Assets)/ Liabilities in relation to : In respect of the current year (33.32) 11.45
Opening Recognised in Recognised Closing TOTAL (33.32) 11.45

Balance Profit or loss in Other balance Total Income Tax expense recognised in the current year relating to continuing operations 335.33 397.01
Comprehen-
sive Income
Property, Plant and Equipment 51.95 (33.87) - 18.08 b The Income Tax expense for the year can be reconciled to the accounting profit as follows:
As at As at
Intangible Assets 72.08 0.99 - 73.07
2020 2019
FVTPL Financial Assets 17.07 (12.84) - 4.23
Profit Before Tax 1,436.95 1,376.45
Provisions for VRS 0.12 (0.12) - -
Income Tax Rate (%) 25.17 34.94
Allowance for doubtful debts (12.86) 5.05 - (7.81)
Income Tax expense 361.65 480.99
Provision for Employee Benefits (14.99) 6.34 (3.68) (12.33) Effect of income that is exempt from taxation (4.19) (6.49)
Share issue and buy-back costs (0.40) 1.88 - 1.48 Effect of expenses that are not deductible in determining taxable profit 21.93 4.59
Effect of concessions (research and development and backward area deductions) (3.46) (17.05)
Others - (0.75) - (0.75)
Effect of lower rate of tax (48.22) (17.72)
TOTAL 112.97 (33.32) (3.68) 75.97
Others 7.62 5.56
b 2018- 2019
TOTAL 335.33 449.88
Deferred Tax (Assets)/ Liabilities in relation to: Adjustments recognised in the current year in relation to the current tax for - (52.87)
prior years
Property, Plant and Equipment 52.59 (0.64) - 51.95
Income tax expense recognised in profit or loss 335.33 397.01
Intangible Assets 63.80 8.28 - 72.08
* The Tax rate used for the above reconciliation is the corporate tax rate of 25.168% (34.944% for the year ended 31 March 2019)
st
payable by corporate entities in India on taxable profits under Indian Tax Law.
FVTPL Financial Assets 16.68 0.39 - 17.07
Provisions for VRS (2.49) 2.61 - 0.12

Income Tax recognised in Other Comprehensive Income
Allowance for doubtful debts (11.41) (1.46) - (12.86) As at As at
Provision for Employee Benefits (13.10) (0.50) (1.39) (14.99) 2019 2018
Share issue and buy-back costs (3.17) 2.77 - (0.40) Tax arising on income and expenses recognised in Other Comprehensive Income:
Total 102.90 11.45 (1.39) 112.97 Re-measurement of Defined Benefit Obligation 3.68 1.39
Total Income Tax recognised in Other Comprehensive Income 3.68 1.39
154

( in crores) 51 Lease
49 Research & Development Expenditure On transition, the adoption of the new standard resulted in recognition of 'Right of Use' asset of 110.88 crores and a
corresponding lease liability of 69.85 crores and transfer from asset amounting to 41.03 crores. The effect of this
For the For the
adoption is insignificant on the profit before tax, profit for the period and earnings per share. Ind AS 116 will result in an
increase in cash inflows from operating activities and an increase in cashoutflows from financing activities on account of
31 March
st
31 March
st
lease payments.
2020 2019
Capital expenditure included in Property, Plant and Equipment Refer Note 47 for contractual maturities of lease liabilities.
1.85 0.45
Revenue expenditure charged to Statement of Profit and Loss Reconciliation of operating lease commitments as at 31st March 2019 with the lease liabilities recognised in the Balance
69.37 64.09
Sheet as at 1st April 2019:
TOTAL 71.22 64.54 Particulars
Operating lease commitments disclosed as at 31st March 2019 34.28
Discounted using incremental borrowing rate of at 1st April 2019 46.51
50 Disclosures required under Section 22 of Micro, Small and Medium Enterprise Development Act, 2006
Add : finance lease liabilities recognised as at 31 March 2019
st
-
As at As at
(Less) : short-term leases not recognised as a liability (10.94)
2020 2019 (Less) : low-value leases not recognised as a liability -
(i) Principal amount remaining unpaid to any SME supplier as at the end of the 9.30 20.96 Lease liability recognised as at 1 April 2019
st
69.85
accounting year
Of which are:
(ii) Interest due thereon remaining unpaid to any supplier as at the end of the - 0.00 Current lease liabilities 16.49
accounting year*
Non-current lease liabilities 53.36
(iii) The amount of interest paid along with the amounts of the payment made to the - -
supplier beyond the appointed day ( in crores)
Impact of adoption of Ind AS 116 on the statement of profit and loss:
(iv) The amount of interest due and payable for the year - -
Particulars For the
(v) The amount of interest accrued and remaining unpaid at the end of the - - year ended
accounting year 31st March
2020
(vi) The amount of further interest due and payable even in the succeeding year, until - -
Interest on lease liabilities (refer Note 35) 6.08
such date when the interest dues as above are actually paid
Depreciation of Right-of-use assets (refer Note 36) 24.19
TOTAL 9.30 20.96
Deferred tax (credit) (0.97)
The above information regarding dues to Micro and Small Enterprises has been determined to the extent such parties have been Impact on the statement of profit and loss for the period 29.30
identified on the basis of information collected with the Company. This has been relied upon by the auditors.
* Amount is Nil ( 45,519 for the year ended 31st March 2019). Expenses related to short term lease incurred during the year 11.96
52 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture,
healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.
A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and
utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.
(a) Gross amount required to be spent by the Company during the year is 24.81 crores ( 23.12 crores for the year ended
31st March 2019)
(b) Amount spent during the year on:
( in crores)
Sr. Particulars In cash Yet to be paid Total
No. in cash
(i) Construction/acquisition of any asset - - -
(-) (-) (-)
(ii) On purposes other than (i) above 26.30 - 26.30
(23.50) (-) (23.50)
Figures in brackets() represent previous year
156

53 Other Information
a) During the year, Madhumala Ventures Pvt Ltd (Formerly known as Madhumala Traders Pvt Ltd) h) During current year, the Company decided to sell plant and machinery pertaining to Synthetic Elastomer
(Madhumala), a wholly owned subsidiary of the Company: project located at Dahej having a carrying value of 60.52 crores as on 1st April 2019 (included in capital
work in progress). Accordingly, reclassified these assets as “Assets held for sale” at fair market value of
(i) invested an amount of 2.00 crores in the Aapkapainter Solutions Pvt Ltd (Aapkapainter). 38.28 crores and an impairment loss amounting to 22.24 crores was provided in September 2019.
Madhumala has agreed to make an investment of 5.00 crores in Aapkapainter, a company engaged The Company has undertaken its best efforts to find buyers for these assets. In absence of buyer, as at
in providing painting and waterproofing solutions to retail consumer. 31st March 2020, these assets were fair valued at estimated realizable scrap value in accordance with Ind
AS 113 “Fair Value Measurement”, being asset categorized as Level 3, whereby fair value is determined
(ii) invested an amount of 71.47 crores in the Trendsutra Platform Services Pvt Ltd (Pepperfry) by based on the inputs to the valuation technique.
subscription to Compulsory Convertible Non-Cumulative Preference Shares. Pepperfry is an online
furniture chain in India. Out of these assets, Company has identified certain plant & machinery amounting to 5.33 crores for its
internal use and remaining plant & machinery amounting to 32.95 crores have been further impaired.
(iii) invested an amount of 49.00 crores in the Homevista Décor & Furnishings Pvt Ltd (HomeLane) by Hence, an impairment loss aggregating to 55.19 crores is disclosed as an exceptional item in the
subscription to Compulsory Convertible Cumulative Preference Shares. HomeLane is a fast growing financial statements.
home interiors company backed by strong tech-stack and presence in 7 cities with 16 experience
i) During the year, the Company had paid Interim Dividend of 7.00 per equity share of 1 each for the
centers in India.
financial year 2019-20.
b) During previous year, Percept Waterproofing Services Limited (Percept) (80% Subsidiary of the
Company) was merged with Nina Waterproofing Systems Pvt Ltd (Nina) (70% Subsidiary of the j) In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The operation of
Company), pursuant to the Hon’ble National Company Law Tribunal, Mumbai Bench, order dated the Company were disrupted since mid of March 20. As on date, The Company has already restarted the
operations albeit in a phased manner after obtaining necessary permissions as required. The Company
11th January 2019, w.e.f. the Appointed date i.e. 1st April 2017 and consequently, Percept stands dissolved
has adopted measures to curb the spread of infection in order to protect the health of its employees
without winding up. Further, post the said merger, w.e.f 27th March 2019, Nina is known as AEKAM
and ensure business continuity with minimal disruption including remote working, maintaining social
Construction Specialties Private Limited (AEKAM) and w.e.f 15th April 2019, AEKAM is known as Nina
distancing, sanitization of work spaces etc.
Percept Private Limited. Accordingly, the company’s investment in Percept are merged with Nina Percept
Private Limited and the Company holds 71.53% stake in the merged entity. The Company has evaluated the impact of COVID-19 on the operations of the Company, order booking
and revenue, cash flow, assets and liabilities and factored in the impact of it upto the date of approval of
c) During the year, Nina Percept Private Limited (NPPL), subsidiary of the Company along with Pidilite these financial statements on the carrying value of its assets and liabilities.
Speciality Chemicals Bangladesh Pvt Ltd (PSCB), step-down subsidiary of the Company, has
incorporated a subsidiary in Bangladesh namely ‘Nina Percept (Bangladesh) Pvt Ltd’ to carry on the Even though, it is very difficult to predict the duration of the disruption and severity of its impact, on the
business of roofing and waterproofing services. NPPL shall hold 99% of the paid up share capital of Nina basis of evaluation of overall economic environment, outstanding order book, liquidity position, debt
Percept (Bangladesh) Pvt Ltd and the balance 1% shall be held by PSCB. free status, recoverability of receivables, the Company expects to recover the carrying amount of these
assets and currently does not anticipate any further impairment of it. In assessing the recoverability,
d) During the year, the Company has incorporated a subsidiary in the name of ‘Pidilite Litokol Private the Company has considered internal and external information upto the date of approval of these Ind
Limited’ (PLPL). This subsidiary is incorporated to carry on the business of chemicals epoxy grouts, AS financial statements and has concluded that there are no material impact on the operations and the
chemical based products, etc. In terms of Shareholder’s agreement, the Company shall hold 60% of the financial position of the Company.
paid-up share capital and balance capital held by Litokol SPA, Italy.
Given the uncertainties, the impact of COVID-19 maybe different from that estimated as at the date of
e) During the year, The Company has incorporated a subsidiary in the name of ‘Pidilite Grupo Puma approval of these standalone financial statements, and the Company will continue to closely monitor the
Manufacturing Limited’ (PGPML) to carry on the business of manufacturing, processing, trading or developments.
dealing in technical mortars, building materials, high quality C2 tile adhesives, other materials used in
construction etc. The Company shall hold 50% of the paid-up share capital and balance capital held by 54 Events after reporting period
Corporacion Empresarial Grupo Puma S.L. (Grupo Puma).
The Company has entered into a definitive agreement with Tenax SPA Italy (Tenax Italy) for acquiring 70% of
f) The Board of Directors at its meeting held on 29th January 2020 have approved a restructuring proposal the share capital of Tenax India Stone Products Pvt Ltd (Tenax India) for cash consideration of approximately
whereby the Company shall, for operational convenience and synergies, acquire the business of wholly 80.00 crores (depending upon the actual cash and working capital at the time of closing), subject to
owned entity, M/s Nitin Enterprise (a partnership firm having two partners which are wholly owned certain preconditions being met prior to closing of the transaction. Tenax Italy is the leading manufacturer
subsidiaries of the Company) on a slump sale basis for a cash consideration of an amount not exceeding of adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone industry.
18.50 crores. The Company has applied and awaiting for necessary approvals. Tenax India is a subsidiary of Tenax Italy engaged in the sales and distribution of Tenax Italy products for the
g) During the year, the Company has incorporated a Subsidiary Company in the name of “Pidilite C-Techos retail market in India.
Walling Limited” (PCWL) to carry on the business of construction of building works or any other
structural or architectural work of any kind using C-Techos wall technology, manufacturing of ACC panels 55 Approval of the financial statements
and other ancillary products. The Company shall hold 60% of the paid-up share capital and balance
capital held by Chetana Exponential Technologies Pvt Ltd. The financial statements are approved for issue by the Audit Committee and by the Board of Directors at
their respective meetings held on 17th June 2020.
158
Corporate Governance Report 161

In compliance with Regulation 34(3) and Schedule V of the Securities and Exchange Board of India (SEBI) - ED– Executive Director, ED (P) – Executive Director, Promoter, NED (P) – Non-Executive Director, Promoter, NED (I) –
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) the Company Non-Executive Director, Independent.
submits the following report: The Company provides teleconference/Video Conference facilities to Directors to participate in the meetings.
1. Company’s Philosophy on Code of Governance Based on intimations/disclosures received from the Directors periodically, none of the Directors of the Company
The Company is committed to complying with the best practices in Corporate Governance and aspires to reach hold Memberships/Chairmanships more than the prescribed limits.
higher standards while emphasising on the principles of integrity, transparency, customer orientation thereby Names of listed entity wherein Directors are holding position of Director & the category of Directorship as on
creating a sustainable culture and long term value for all its stakeholders. 31st March 2020:
The Company has complied in all material respects with all applicable mandatory requirements of the Name of Director Name of the Listed company Category of Directorship
Listing Regulations.
Shri M B Parekh Vinyl Chemicals (India) Limited Managing Director and Chairperson
2. Board of Directors
Excel Industries Limited Non-Executive - Independent Director
During the financial year 2019-20, six Board Meetings were held on 14th May 2019, 6th August 2019,
13th November 2019, 18th November 2019, 29th January 2020 and 5th March 2020#. Shri N K Parekh Vinyl Chemicals (India) Limited Non-Executive – Non Independent Director
The Directors of the Company are in a fiduciary position, empowered to oversee the management functions Shri Bharat Puri Tata Consumer Products Limited Non-Executive - Independent Director
with a view to ensuring its effectiveness and enhancement of shareholders value. The Board also reviews and (formerly known as Tata Global
approves management’s strategic plan & business objectives and monitors the Company’s strategic direction. Beverages Ltd)
Shri A B Parekh Vinyl Chemicals (India) Limited Non-Executive – Non Independent Director
The composition of the Board is in conformity with Regulation 17 of the Listing Regulations as well as the
Companies Act, 2013 read with the Rules issued thereunder. The Independent Directors constitute 50% of Shri A N Parekh - -
the Board’s strength. The details of composition of the Board, category, attendance of Directors at the Board Shri B S Mehta Procter & Gamble Hygiene Non-Executive - Independent Director
Meetings and previous Annual General Meeting (50th AGM), number of other Directorships and Committee and Health Care Limited
positions as on 31st March 2020 are given below:
Century Enka Limited Non-Executive - Independent Director
Sr. Name DIN Category No. of Attendance No. of No. of Committee Gillette India Limited Non-Executive - Independent Director - Chairperson
No. Board at 50th AGM Directorships positions held in
Meetings held in other other companies **** Atul Limited Non-Executive - Independent Director
attended companies(***) Member Chairman-
@ Shri Sanjeev Aga UFO Moviez India Limited Non-Executive - Independent Director-Chairperson
-ships ships
1. Shri M B Parekh 00180955 ED (P) 6 Yes 9 1 - Mahindra Holidays & Resorts India Limited Non-Executive - Independent Director
(Executive Chairman) Larsen & Toubro Infotech Limited Non-Executive - Independent Director
2. Shri N K Parekh 00111518 NED (P) 6 Yes 10 1 - Larsen And Toubro Limited Non-Executive - Independent Director
(Vice Chairman)
Shri Uday Khanna Castrol India Limited Non-Executive - Independent Director
3. Shri Bharat Puri 02173566 ED 6 Yes 4 1 -
(Managing Director) Pfizer Limited Non-Executive - Independent Director
4. Shri A B Parekh 00035317 ED (P) 3 No 14 - - Kotak Mahindra Bank Limited Non-Executive - Independent Director
(Whole Time Director)
Smt Meera Shankar ITC Limited Non-Executive - Independent Director
5. Shri A N Parekh 00111366 ED (P) 6 Yes 6 1 -
(Whole Time Director) Adani Transmission Limited Non-Executive - Independent Director
6. Shri Sabyaschi Patnaik 07183784 ED 5 Yes - - - Hexaware Technologies Limited Non-Executive - Independent Director
(Whole Time Director)*
JK Tyre & Industries Ltd. Non-Executive - Independent Director
7. Shri B S Mehta 00035019 NED (I) 4 Yes 5 4 -
Shri Vinod Kumar Dasari Eicher Motors Ltd Executive Director
8. Shri Sanjeev Aga 00022065 NED (I) 6 Yes 6 2 1
Shri Piyush Pandey D. B. Corp Limited Non-Executive - Independent Director
9. Shri Uday Khanna 00079129 NED (I) 6 Yes 5 1 3
Zee Entertainment Enterprises Limited Non-Executive - Independent Director
10. Smt Meera Shankar 06374957 NED (I) 5 Yes 4 2 -
Shri Sabyaschi Patnaik - -
11. Shri Vinod Kumar Dasari 00345657 NED (I) 4 Yes 4 - -
(Upto 29th February, 2020)
12. Shri Piyush Pandey 00114673 NED (I) 6 Yes 6 3 - Shri Debabrata Gupta - -
13. Shri Debabrata Gupta 01500784 ED 1 - - - - (w.e.f. 1st March 2020)
(Whole Time Director)**
Shri M B Parekh and Shri A B Parekh are related to each other. Shri A N Parekh and Shri N K Parekh are related
Notes: to each other. The Chairman is not related to the Managing Director, as per the definition of ‘relative’ defined
# The meeting was held on 5th March 2020 and continued till 8th March 2020 under the Companies Act, 2013. The Chairman of the Company is a Promoter Director and has been serving as a
@ Including participation by Video conference. Director of the Company since 1972. He has guided the Company through decades of diversification and growth.
* Ceased to be a Director on the Board of the Company from the close of business hours of 29th February 2020 due to He is primarily responsible for ensuring that the Board provides effective governance to the Company.
his resignation.
The Managing Director of the Company is responsible for executing all corporate strategy and planning in
** Appointed as an Additional Director w.e.f. 1st March 2020. He is also appointed as a Whole Time Director designated as
Director-Operations for 3 years w.e.f. 1st March 2020 at the Board meeting held on 29th January 2020. consultation with the Board and other matters of the management.
*** Including directorships held in private limited companies, section 8 companies (as per Companies Act, 2013), Alternate The number of shares held by Non-Executive Directors as on 31st March 2020:
directorships and directorships in entities incorporated outside India.
**** Position in Audit Committee and Stakeholders Relationship Committee only (excluding private limited company, foreign
Shri B S Mehta – 24,716, Shri Sanjeev Aga – 798, Shri Uday Khanna – 5,000, Smt Meera Shankar – Nil; Shri Vinod
company and section 8 company) as provided in Regulation 26(1) of Listing Regulations. Kumar Dasari – Nil, Shri Piyush Pandey - Nil and Shri N K Parekh (Promoter) – 5,42,73,688.
160
163

The familiarization programme for Independent Directors in terms of provisions of Listing Regulations is The Company Secretary is the Secretary of the Audit Committee. The Chief Financial Officer, Vice President
uploaded on the website of the Company: www.pidilite.com. The Independent Directors were updated with the – Domestic Accounts, Statutory Auditors and Internal Auditors are invited to attend the meetings. The Cost
strategic and operational details of the respective divisions of the Company. Auditor is invited as and when required.
Skills/expertise/competencies identified by the Board of Directors (as on 31st March 2020) The Chairman of the Audit Committee was present at the 50th AGM held on 6th August 2019.
The core skills/expertise/competencies available with the Board and taken into consideration while nominating 4. Nomination and Remuneration Committee (NRC)
any candidate to serve on the Board are: NRC also functions as Compensation Committee as per SEBI (Share Based Employee Benefits)
Regulations, 2014.
Name of Directors Sales and Business Leadership & Legal & Finance, Relevant
Marketing & Senior Governance Regulatory Accounts Technologies The terms of reference of NRC consists of making recommendation to the Board for all remuneration payable
Management Matters & Risk to Directors and Senior Management and making policy relating thereto, review of performance-based
Management remuneration with reference to corporate goals and objectives, frame policy and review the process of
Executive Directors succession planning at key levels in the Company and other related matters.
√ √ √ √ √ √ During the financial year 2019-20, five meetings of the NRC were held on 13th May 2019, 13th November 2019,
Shri M B Parekh
16th December 2019, 29th January 2020 and 5th March 2020.
Shri N K Parekh √ √ √ √ √ √
Details of composition of the NRC and attendance of the members at the meetings are given below:
Shri Bharat Puri √ √ √ √ √ √
Sr. No. Name Designation Category No. of meetings attended
Shri A B Parekh √ √ √ √ √ √
1 Shri B S Mehta Chairman NED (I) 4
Shri A N Parekh √ √ √ √ √ √
2 Shri N K Parekh Member NED (P) 5
Shri Debabrata Gupta √ √ √ √
3 Shri Sanjeev Aga Member NED (I) 5
Independent Directors
4 Shri Vinod Dasari* Member NED (I) 3
Shri B S Mehta √ √ √ √
*Shri Vinod Dasari was appointed as member of NRC at the Board Meeting held on 13th November 2019.
Shri Sanjeev Aga √ √ √ √ √
Shri Rahul Kumar Sinha, Chief Human Resource Officer, acts as the Secretary of the NRC.
Shri Uday Khanna √ √ √ √ √
The Committee’s constitution and terms of reference are in compliance with the provisions of Section 178 of
Smt Meera Shankar √ √ √
the Companies Act, 2013, Regulation 19 and Part D of Schedule II of Listing Regulations and SEBI (Share Based
Shri Vinod Dasari √ √ √ √ √ Employee Benefits) Regulations, 2014, as amended from time to time.
Shri Piyush Pandey √ √ √ √ √ The Committee has formulated Remuneration Policy for Directors, Key Managerial Personnel and Senior
Independent Directors’ Meeting Management Personnel and is available on the Company’s website viz. www.pidilite.com. The Remuneration
Policy is directed towards time commitment and responsibilities of the Directors and senior management,
In accordance with the provisions of Schedule IV (Code for Independent Directors) of the Companies Act, 2013
desirability of performance-based remuneration and salaries paid by comparable companies.
and Regulation 25(3) of Listing Regulations, meetings of the Independent Directors of the Company were held
on 13th November 2019 and 5th March 2020. The criteria for performance evaluation of Directors, Board etc. cover the areas relevant to the functioning of
This is to confirm that in the opinion of the Board, the Independent Directors fulfill the conditions specified in Independent Directors such as preparation, participation, conduct and effectiveness. The Board evaluation for
Listing Regulations and are independent of the management. financial year 2019-20 was completed and summary of findings and recommendations were discussed by
the Directors.
3. Audit Committee
A. Remuneration of Directors
The composition of the Audit Committee, its powers and terms of reference are in alignment with provisions of
Details of Executive Directors’ remuneration for the financial year 2019-20 are given below:
Section 177 of the Companies Act, 2013 read with the Rules issued thereunder and Regulation 18 of the Listing
Regulations. The members of the Audit Committee are financially literate and have experience in financial ( in crores)
management. All the recommendations made by the Audit Committee during the year under review were Sr. Name Salary * Commission Variable Pay Perquisites Total Tenure
accepted by the Board. No. Payable (Provision) and other (No. of years)
allowances
During the financial year 2019-20, five meetings of the Audit Committee were held on 13th May 2019,
1 Shri M B Parekh 1.85 0 0 1.98 3.83 5 years from
5th August 2019, 12th November 2019, 28th January 2020 and 5th March 2020 (in respect of all the aforesaid
(Executive Chairman) 01.08.2018
meetings except the meeting held on 5th March 2020 certain business items were transacted and then meeting
2 Shri Bharat Puri 5.74 3.61 1.37 18.73 29.45 5 years from
were adjourned to the next consecutive day for discussion on financial results and other related matters)
(Managing Director) 10.04.2020@
Details of composition of the Audit Committee and attendance of the members at the meetings are given below: 3 Shri A B Parekh 0.79 0 0 0.85 1.64 5 years from
(Whole Time Director) 01.08.2018
Sr. No. Name Designation Category No. of Meetings attended
4 Shri A N Parekh 0.69 4.34 0 0.68 5.71 5 years from

1 Shri B S Mehta Chairman NED (I) 4 (Whole Time Director) 01.07.2020@
2 Shri M B Parekh Member ED (P) 5 5 Shri Sabyaschi Patnaik 0.58 0 0 1.73 2.31 3 years from
(Whole Time Director)** 19.05.2018
3 Shri Uday Khanna Member NED (I) 5 6 Shri Debabrata Gupta # 0.09 0 0.11 0.08 0.28 3 years from
01.03.2020
4 Shri Sanjeev Aga Member NED (I) 5*
* Includes House Rent Allowance
* Shri Sanjeev Aga was not able to attend the meeting held on 28th January 2020. However, he attended the adjourned
** Resigned as a Director from the close of business hours of 29 th February 2020.
Audit committee meeting held on 29th January 2020.
# Appointed as a Director w.e.f 1st March 2020.
Shri Bharat Puri, Managing Director is a permanent invitee, ex-officio.
@ Subject to approval of Shareholders, Board has re-appointed Shri Bharat Puri as Managing Director and Shri A N Parekh
162 as Whole-time Director.
165

The above figures are exclusive of Company’s contribution to Provident Fund, Superannuation, Gratuity and Details of composition of the Stakeholders Relationship Committee are given below:
encashment of leave at the end of tenure as per the rules of the Company. Sr.
Name Designation Category
Details of Stock options: No.
Sr. 1 Shri Sanjeev Aga Chairman NED (I)

Name of the Director Vesting date No. of options# Exercise period
No.
2 Shri N K Parekh Member NED (P)
1 Shri Bharat Puri 30.10.2019 1,10,000* Within 3 years from the
date of vesting 3 Shri A B Parekh Member ED (P)
30.10.2020 1,10,000 Within 3 years from the The Committee is empowered to look into redressal of shareholders’/investors’ grievance such as complaints
date of vesting relating to transfer/transmission of shares, non-receipt of declared dividends, non-receipt of Annual Reports,
2 Shri Sabyaschi Patnaik 30.10.2019 1,150* Within 3 years from the effective exercise of voting rights by shareholder, service standards for Registrar and Share Transfer Agent,
date of vesting reducing quantum of unclaimed dividend, etc.
08.11.2019 1,500*
The status of investor grievances and share transfers is reported to the Board on periodic basis.
30.10.2020 1,150**
Shri Puneet Bansal, Company Secretary and Smt. Manisha Shetty, Additional Company Secretary, are the
# The stock options are issued at the face value. Compliance Officers for complying with the requirements of the Securities Laws and Listing Regulations.
* Vested and exercised. Barring certain cases pending in Courts/Consumer Forums, mainly relating to disputes over the title to shares, in
** Options lapsed due to resignation. which the Company has been made a party, the Company and TSR Darashaw Consultants Pvt Ltd, have attended
B. Service contracts, notice period, severance fees to all the shareholders’/investors’ grievances/correspondences generally within a period of 15 days from the date
of receipt.
Notice period for the Executive Directors is as applicable to the senior employees of the Company except
for Shri Bharat Puri where the notice period is of 365 days (as per agreement). No severance fee is payable The total number of letters received from the shareholders were 808 of which only 9 were in the nature of
to the Executive Directors on termination of employment. complaints. All the complaints were resolved to the satisfaction of shareholders. 1 request for transfer of shares
was pending as on 31st March 2020. This pending request lodged in the last week of March 2020 has been
C. Details of sitting fees and commission to Non-Executive Directors
subsequently processed and completed.
The details of sitting fees paid for attending the Board/ Committee meetings and commission due to the
Non-Executive Directors for the year ended 31st March 2020 are as under: As per SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations) the Company has adopted
a Code of Conduct for Prevention of Insider Trading (Code). All the Directors, employees and other persons
Sr.
Name Sitting fees ( ) Commission Payable ( ) Total ( ) specified therein are governed by this Code.
No.
1 Shri B S Mehta 3,90,000 20,00,000 23,90,000 The Company appointed Shri A N Parekh, Whole Time Director, Shri Puneet Bansal, Company Secretary and
Smt. Manisha Shetty, Additional Company Secretary as the Compliance Officers under PIT Regulations.
2 Shri Sanjeev Aga 5,22,000 20,00,000 25,22,000 6. Risk Management Committee
3 Shri Uday Khanna 3,60,000 20,00,000 23,60,000 In compliance with the provisions of the Companies Act, 2013 and Regulation 21 of Listing Regulations, the Risk
Management Committee has been constituted under Chairmanship of Shri B S Mehta and Shri Uday Khanna,
4 Smt. Meera Shankar 2,10,000 20,00,000 22,10,000 Shri A N Parekh, Shri Sabyaschi Patnaik (upto 29th February 2020), Shri Debabrata Gupta (with effect from
1st March, 2020), Shri A. D. Ubhaykar, Shri Sanjay Bahadur and Shri Pankaj Bhargava (with effect from 1st March
5 Shri Vinod Kumar Dasari 2,10,000 20,00,000 22,10,000
2020) as members. During the year, one meeting of the Committee was held on 12th November 2019.
6 Shri N K Parekh 7,50,000 20,00,000 27,50,000 The Company also has a Management Risk Committee, also known as the Risk Identification and Mitigation
Committee (RIMC). 2 meetings of the RIMC were held during the financial year 2019-20.
7 Shri Piyush Pandey 1,80,000 20,00,000 21,80,000
7. Corporate Social Responsibility (CSR) Committee
The Non-Executive Directors did not have pecuniary relationships or transactions vis-à-vis the Company.
The composition of the CSR Committee is in alignment with provisions of Section 135 of the Companies
The Company regularly obtains services from Ogilvy and Mather Pvt. Ltd., in which Shri Piyush Pandey,
Act, 2013.
Independent Director of the Company, is a Whole-time Director. The Company has not granted any Stock option
to any of its Non-Executive Directors. The Committee met two times during the financial year 2019-20 i.e. on 14th May 2019 and 28th January 2020.
In terms of Special Resolution passed by the Members at Annual General Meeting held on 30 August 2018, th The constitution of the CSR Committee along with the details of the meetings attended during the financial year
the aggregate commission paid to the Non-Executive Directors does not exceed 1% per annum of the net 2019-20 is detailed below:
profit of the Company computed in accordance with Section 198 of the Companies Act, 2013. The commission
Sr. Name Designation Category No. of meetings
is determined by the Board of Directors considering the time spent in attending Board meetings, Committee No. attended
meetings and advice given to the Company as experienced/expert persons, whenever approached.
1 Shri N K Parekh Member NED (P) 2
5. Stakeholders Relationship Committee
2 Shri Sanjeev Aga Member NED (I) 1
The composition of the Stakeholders Relationship Committee is in compliance with the provisions of Section 178
of the Companies Act, 2013 read with the Rules issued thereunder and Regulation 20 of the Listing Regulations. 3 Shri A B Parekh Member ED (P) 2
During the financial year 2019-20, fourteen meetings of the Share Transfer Committee were held and
4 Shri Sabyaschi Patnaik# Member ED 2
one meeting of Stakeholders Relationship Committee was held on 29th January 2020 which was attended by all
the members of the Committee. 5 Smt. Meera Shankar Member NED (I) 2
6 Shri Debabrata Gupta* Member ED -

# Shri Sabyaschi Patnaik ceased to be a member of CSR Committee w.e.f. 01.03.2020 due to his resignation.
* Shri Debabrata Gupta was appointed as a member of CSR Committee w.e.f. 01.03.2020
164
167

Members elect Chairperson of the Committee at each meeting. The Company Secretary acts as Secretary to Stock Exchanges or any other statutory authority on any matter relating to capital markets during the
the Committee. last 3 years.
The CSR Committee is empowered, pursuant to its terms of reference, inter alia, to: • The Company has complied with all the requirements of corporate governance as specified in Regulations
17 to 27 and clauses (b) to (i) of sub-regulation (2) of Regulation 46 of the Listing Regulations.
a) Formulate and recommend to the Board a Corporate Social Responsibility Policy indicating the activities
to be undertaken by the Company. • The Company has a Vigil Mechanism and Whistle Blower Policy for Directors and Employees to report
violations of applicable laws and regulations and the Code of Conduct. During the year under review, no
b) Recommend the amount of expenditure to be incurred.
employee was denied access to the Audit Committee Chairman.
c) Monitor the implementation of Corporate Social Responsibility Policy. • The Company has no material subsidiary. The Policy for determining ‘material’ subsidiary is uploaded on
The details of the CSR initiatives of the Company form part of the Social & Community Services Initiatives the website of the Company: www.pidilite.com
Report and Annexure to the Directors’ Report. The CSR Policy has been placed on the website of the Company: • Company’s Policy on Related Party Transactions is uploaded on the website of the Company:
www.pidilite.com www.pidilite.com
8. General Body Meetings • The Company has not made preferential allotment or qualified institutional placement.
Details of location, date and time of the Annual General Meetings held during the last three years are • There were no instances, wherein the Board had not accepted recommendations made by any
given below: committee of the Board.
Financial Venue Date & Time Details of special resolution passed at the AGM • Total fees of 1.52 crores for financial year 2019-20, for all services, was paid by the Company and its
Year subsidiaries, on a consolidated basis to the Statutory Auditor of the Company and all entities in the
2018-19 Kamalnayan Bajaj Hall, Bajaj 6th August 2019 • Re-appointment of Shri N K Parekh as a network firm/network entity of which the Statutory Auditor is a part.
Bhavan, Jamnalal Bajaj Marg, at 3.00 p.m. Non-Executive Director, who retired by rotation.
12. Equity shares in Unclaimed Suspense Account under Regulation 39 and Schedule VI of Listing Regulations
Nariman Point, Mumbai-400 021. • Re-appointment of Shri B S Mehta as an
Independent Director for a second consecutive The details of Equity shares in Unclaimed Suspense Account under Regulation 39 and Schedule VI of Listing
term of 5 years Regulations are as follows:
• Re-appointment of Shri Uday Khanna as an
Independent Director for a second consecutive Description No. of Records No. of Equity Shares
term of 5 years of 1/- each
• Re-appointment of Smt. Meera Shankar as an No. of shareholders and outstanding shares at the beginning of the year 48 43,619
term of 5 years No. of shareholder’s request received for transfer of shares during the year 0 0
2017-18 Kamalnayan Bajaj Hall, Bajaj 30th August 2018 • Re-appointment of Shri M B Parekh as the
No. of shareholders to whom shares transferred during the year 0 0
Bhavan, Jamnalal Bajaj Marg, at 11.00 a.m. Whole Time Director designated as
Nariman Point, Mumbai-400 021. Executive Chairman for a period of 5 years No. of shareholders and shares transferred to IEPF A/C 5 4,833
2016-17 Kamalnayan Bajaj Hall, Bajaj 31st August 2017 • Adoption of new Articles of Association of
Bhavan, Jamnalal Bajaj Marg, at 11.00 a.m. the Company. No. of shareholders and outstanding shares at the end of the year 43 38,786
Nariman Point, Mumbai-400 021.
The voting rights on the above shares shall remain frozen till the rightful owner of such shares claims the shares.
The above mentioned Special Resolutions were passed with requisite majority. 13. Compliance of discretionary requirements under Regulation 27 of Listing Regulations
Postal Ballot a. The Chairman of the Company, Shri M B Parekh, is the Executive Chairman.
No postal ballot was conducted during the financial year 2019-20. There is no immediate proposal for passing b. As the financial results are published in the newspapers and also posted on Company’s website, the
any resolution through postal ballot. same are not being sent to the shareholders.
9. Means of Communication c. The Company’s financial statements for the financial year ended 31st March 2020 do not contain any
• The extract of standalone and consolidated results are normally published in The Economic Times and modified audit opinion.
Maharashtra Times and are displayed on the website of the Company: www.pidilite.com d. Shri Bharat Puri is the Managing Director and Chief Executive Officer of the Company. He is not related
• Official news releases and presentations made to Institutional Investors or to Analysts and transcripts of to any Director, Key Managerial Personnel or their relatives of the Company.
meeting with the Analysts are posted on the Company’s website. e. The Internal Auditor reports directly to the Audit Committee.
• The Company makes timely disclosures of necessary information to BSE Limited and the National Stock 14. Information relating to Directors
Exchange of India Limited in terms of the Listing Regulations and other regulations issued by the SEBI. Information relating to Directors seeking appointment/reappointment as required under Regulation 36(3) of
• The Annual Report with Audited Financial Statements of the Company and its subsidiaries are available Listing Regulations is given in the Notice of the ensuing 51st Annual General Meeting.
in downloadable formats on the website of the Company www.pidilite.com. The Annual Report and 15. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition
Audited Financial Statements of the Company are also available on the websites of the Stock Exchanges. and Redressal) Act, 2013 during the financial year 2019-20
10. General Information for Shareholders a. Number of complaints filed during the financial year: 1
Detailed information in this regard is provided in the “Information for Shareholders” section, appearing in the b. Number of complaints disposed of during the financial year: Nil
Annual Report. c. Number of complaints pending as on end of the financial year: 1
11. Disclosures 16. Certificate from Company Secretary in Practice:
During the financial year 2019-20: A certificate from Shri M M Sheth of M/s. M M Sheth & Co., Company Secretary in Practice has been attached with
• There were no materially significant related party transactions which have potential conflict with the this Report stating that none of the Directors on the Board of the Company have been debarred or disqualified
interest of the Company at large. The details of related party transactions are set out in the Notes to from being appointed or continuing as directors of companies by SEBI/Ministry of Corporate Affairs or any such
Financial Statements forming part of this Annual Report. statutory authority.
• The Company has complied with all requirements of the Listing Regulations and guidelines of SEBI. 17. Declaration by the Managing Director under Schedule V (D) of Listing Regulations:
Consequently, no penalties were imposed or strictures passed against the Company by SEBI, ‘Pursuant to Schedule V (D) of Listing Regulations, I hereby declare that all the Board Members and Senior
Management personnel of the Company have affirmed compliance with the Code of Conduct of Board of
166 Directors and Senior Management for the year ended 31st March 2020.’
Corporate Governance Compliance Certificate Certificate OF NON-DISQUALIFICATION OF DIRECTORS 169

To [pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
The Members of CIN: L24100MH1969PLC014336
M/s. Pidilite Industries Limited Nominal Capital: 70 crores
To
We have examined relevant records of M/s Pidilite Industries Ltd. (the Company) for the purpose of certifying The Members of
compliance of the conditions of Corporate Governance for the financial year ended 31st March 2020 as per M/s. Pidilite Industries Limited,
the provisions of Regulations 17 to 27, clauses (b) to (i) of Regulation 46(2) and para C and D of Schedule V of Regent Chambers, 7th Floor,
208, Nariman Point, Mumbai – 400021.
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“Listing Regulations”). We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of certification. I have examined the relevant registers, records, forms, returns and disclosures received from the Directors
of Pidilite Industries Limited having CIN: L24100MH1969PLC014336 and having registered office at
The compliance of the conditions of Corporate Governance is the responsibility of the Management. Regent Chambers, 7th Floor, 208, Nariman Point, Mumbai – 400021, Maharashtra, India (hereinafter referred
Our examination was limited to the review of procedure and implementation thereof. It is neither an audit to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate, in
nor an expression of opinion on the financial statements of the Company. accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
On the basis of our examination of the records produced, explanations and information furnished, we certify
In my opinion and to the best of my information and according to the verifications (including Directors
that the Company has complied with the conditions of Corporate Governance for the financial year ended Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations
31st March 2020 as stipulated in the Listing Regulations. furnished to me by the Company & its officers, I hereby certify that none of the Directors on the Board of the
Company as stated below for the Financial Year ending on 31st March, 2020 have been debarred or disqualified
This certificate is neither an assurance as to the future viability of the Company nor the efficacy or effectiveness
from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India,
with which the Management has conducted the affairs of the Company.
Ministry of Corporate Affairs or any such other Statutory Authority.
Sr. No. Name of Director DIN Original Date of

Place: Mumbai For M M SHETH & CO. Appointment in Company
Date: 17th June 2020 (Company Secretaries) 1 Narendrakumar Kalyanji Parekh 00111518 28/07/1969
2 Madhukar Balvantray Parekh 00180955 31/08/1972
3 Ajay Balvantray Parekh 00035317 26/06/1985

M M SHETH
(Prop) 4 Bansidhar Sunderlal Mehta 00035019 25/07/2000
FCS No. 1455, CP No. 729
5 Apurva Narendrakumar Parekh 00111366 01/07/2005
UDIN: F001455B000351244
6 Bharat Tilakraj Puri 02173566 28/05/2008
7 Uday Chander Khanna 00079129 03/04/2014
8 Meera Shankar 06374957 30/07/2014
9 Sabyaschi Patnaik* 07183784 19/05/2015
10 Sanjeev Aga 00022065 29/07/2011
11 Vinod Kumar Dasari 00345657 01/09/2015
12 Piyush Indernarayan Pandey 00114673 11/04/2018
13 Debabrata Sujit Gupta 01500784 01/03/2020

*Resigned from the close of business hours of 29/02/2020
Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of
the management of the Company. My responsibility is to express an opinion on these based on my verification.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
Place: Mumbai For M M SHETH & CO.

Date: 17th June 2020 (Company Secretaries)
M M SHETH
(Prop)
FCS No. 1455, CP No. 729
168 UDIN: F001455B000351244
Information for Shareholders 171

Annual General Meeting Registrar & Share Transfer Agent in the dematerialised form. The shares are available
Month Share Price ( )
for dematerialisation under ISIN - INE318A01026.
Day, Date and Time: TSR Darashaw Consultants Private Limited
Thursday, 10th September 2020 at 3.00 p.m. High Low (formerly known as TSR Darashaw Limited), Requests for dematerialisation of shares are
Unit: Pidilite Industries Limited processed and generally confirmed within 15 days
Venue: December 2019 1,409.40 1,290.00
6-10, Haji Moosa Patrawala Ind. Estate, 20, of receipt.
The Company is conducting AGM through Video Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011
January 2020 1,545.00 1,381.95 Transfer of unclaimed dividend & shares to the
Conferencing/Other Audio Visual Means as permitted Tel : 022 - 66568484 Investor Education and Protection Fund
under the various circulars issued by Ministry of February 2020 1,607.00 1,475.00 Fax : 022 - 66568494
Corporate Affairs. E-mail : [email protected] Pursuant to applicable provisions of the Companies
March 2020 1,709.90 1,185.55 Website : www.tsrdarashaw.com Act, 2013 read with the Investor Education and
Financial Year: 1 April 2019 to 31 March 2020
st st
Protection Fund Authority (Accounting, Audit,
Share prices during the financial year 2019-20 at BSE
Date of Book Closure: Share Transfer System Transfer and Refund) Rules, 2016 (Rules), all unpaid
for one equity share of 1/- each were as under: or unclaimed dividends and shares in respect of
Friday, 4th September 2020 to Thursday, The Company has delegated the authority to approve
10th September 2020 shares received for transfer in physical form to TSR which dividend has not been paid or claimed by the
Month Share Price ( ) shareholders for seven consecutive years or more
Darashaw Consultants Private Limited, Registrar &
(both days inclusive-only in case of shares held in Share Transfer Agent and Share Transfer Committee have been transferred by the Company to the Investor
High Low
physical form). comprising of the Directors viz, Sarva Shri N K Parekh, Education and Protection Fund (IEPF) Authority. The
Dividend April 2019 1,311.00 1,197.05 A B Parekh and A N Parekh. said requirement does not apply to shares in respect
of which there is a specific Order of Court, Tribunal or
An interim dividend of 7/- per equity share of May 2019 1,296.20 1,090.00 Presently the share transfers documents are Statutory Authority, restraining transfer of the shares.
1/- each amounting to 355.61 crores, which was processed and the share certificates duly transferred
June 2019 1,305.00 1,209.65 are returned generally within a period of 15 days from During the year under review, the Company had
declared and paid during the financial year, will be
the date of receipt, subject to the documents being sent individual notices and also advertised in the
considered as the final dividend.
July 2019 1,253.00 1,168.80
valid and complete in all respects. newspapers seeking action from the shareholders
Listing of Shares on Stock Exchanges: who have not claimed their dividends for seven
The equity shares of the Company are listed on BSE
August 2019 1,399.80 1,187.05 Distribution of Shareholding as on 31st March 2020 consecutive years or more. Accordingly, the Company
Limited (BSE) and National Stock Exchange of India No. of Equity No. of No. of
has transferred to IEPF following unpaid or unclaimed
September 2019 1,494.90 1,288.50
Limited (NSE).The Annual Listing fee for the financial % % dividends and corresponding shares as under:
Shares held Shareholders Shares
year 2019-20 has been paid to BSE and NSE. October 2019 1,466.90 1,287.25
Upto 5000 1,83,206 98.64 2,57,43,246 5.07 Particulars Amount of No. of shares
Stock Codes November 2019 1,424.30 1,278.70 dividend ( )
5001-10000 1,520 0.82 1,13,36,618 2.23 Final Dividend for the 11,38,340 35,987
Name and address of the Stock Exchange Stock Code December 2019 1,409.00 1,291.10 Financial Year 2011-12
10001-20000 431 0.23 61,64,493 1.21
BSE Limited 500331 January 2020 1,544.00 1,382.25 The Company has uploaded the above mentioned
Phiroze Jeejeebhoy Towers, details on its website: www.pidilite.com and also on
February 2020 1,609.00 1,477.00 20001-30000 122 0.06 30,22,869 0.60
Dalal Street, Mumbai - 400 001. the website of the IEPF Authority (www.iepf.gov.in).
National Stock Exchange of India Limited PIDILITIND March 2020 1,709.85 1,186.05 30001-40000 70 0.04 24,40,280 0.48 The voting rights on the shares transferred to IEPF
Exchange Plaza, C-1, Block G, Bandra Kurla Authority shall remain frozen till the rightful owner
Complex, Bandra (E), Mumbai - 400 051. 40001-50000 47 0.02 21,00,601 0.41
Stock Performance claims the shares from the IEPF Authority.
Market Price Data Base is considered to be 100 as on 1st April 2019. 50001-100000 127 0.07 89,77,754 1.77 Shareholders/claimants whose shares, unclaimed
Share prices during the financial year 2019-20 at NSE dividend, have been transferred to the IEPF Demat
The performance of the Company’s shares in 100001 and
215 0.12 44,83,37,919 88.23 Account or the Fund, as the case may be, need to
for one equity share of 1/- each were as under: comparison to BSE sensex is given in the chart below: above
apply to the IEPF Authority by making an application
Total 1,85,738 100.00 50,81,23,780 100.00 in Form IEPF-5 (available on http://www.iepf.gov.in).
Month Share Price ( )
Company has appointed Shri Puneet Bansal as
150 No. of 877 0.47 14,09,335 0.28
High Low Nodal Officer and Smt Manisha Shetty, as Deputy
140 Shareholders
& shares in
Nodal Officer.
April 2019 1,312.60 1,195.00 130
physical mode Plant Locations
120
Major Plant locations-Mahad, Taloja, Karad
May 2019 1,301.40 1,095.00 No. of beneficial 1,84,861 99.53 50,67,14,445 99.72
110
owners & shares (Maharashtra); Vapi, Surat, Dahej (Gujarat); Daman
June 2019 1,304.80 1,209.10 100 in electronic (Union Territory of India); Kala Amb, Baddi, Nalagarh
90 mode (Himachal Pradesh); Secunderabad (Telangana);
July 2019 1,254.00 1,168.10 80 Guwahati (Assam), Vizag (Andhra Pradesh).
Total 1,85,738 100.00 50,81,23,780 100.00
Percent
70 Credit Ratings
August 2019 1400.00 1,186.10 Dematerialisation of shares and liquidity
60
September 2019 1,493.50 1,288.00 As on 31 March 2020, 99.72% of total equity shares
st The Company has not issued any debt instruments and
does not have any fixed deposit programme or any
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
of the Company were held in dematerialised form with

October 2019 1,467.25 1,321.00 National Securities Depository Limited and Central scheme or proposal involving mobilization of funds in
Depository Services (India) Limited. The Company’s India or abroad during the financial year ended
November 2019 1,424.45 1,278.00 Pidilite (BSE) BSE Sensex equity shares are required to be compulsorily traded 31st March 2020. The ratings given by CRISIL for
170
CONSOLIDATED
173

short-term borrowings and long-term borrowings of Address for Correspondence
the Company are A1+ and AAA respectively. There was Registered Office:
no revision in the said ratings during the year
Regent Chambers, 7th Floor, Jamnalal Bajaj Marg,
under review.
208, Nariman Point, Mumbai - 400 021
Commodity price risk / Foreign Exchange Risk and Tel No: 022-2282 2708
Hedging Activities CIN: L24100MH1969PLC014336
Certain key raw materials and packing materials Corporate Office:
used by the Company are derivatives of commodities
Ramkrishna Mandir Road,
such as crude oil, paper, aluminium etc. Any material
Off. Mathuradas Vasanji Road,
price fluctuation in such commodities can impact
Andheri (E), Mumbai - 400 059
the margins of the Company till the impact is
Tel No : 022-28357000/7949
appropriately factored in the pricing of Company’s
Fax No : 022-28216007
products. The Company does not undertake
E-mail : [email protected]
commodity hedging activities.
Website : www.pidilite.com
The Company has managed the foreign exchange Corporate Secretarial/Investors’ Assistance
risk with appropriate hedging activities in accordance Department
with the policies of the Company.
The Company’s Secretarial Department headed by
Exposure to commodity and commodity risks faced Shri Puneet Bansal, Company Secretary, is situated at
by the Company throughout the year is Nil. the Corporate Office mentioned above. Shareholders/
Investors may contact Shri. Puneet Bansal or
Shareholding Pattern as on 31st March 2020 Smt. Manisha Shetty at the Corporate Office in
Mumbai for any assistance they may need.
UTI, Mutual Funds, Outstanding GDRs/ADRs/Warrants
Banks, Insurance
Companies & Alternate The Company has no outstanding GDRs/ADRs/
Investment Funds 7.9 % Warrants as on 31st March 2020.
Employee Stock Options
The information with regard to the Employee
Stock Options are set out under Annexure to
FII’s & FPI’s
11.5 % Directors’ Report.
Bodies
Corporate & Indian
Public 10.68 %
Promoters
69.92 %
172
FINANCIAL
INDEPENDENT AUDITOR’S REPORT 175

To The Members of Pidilite Industries Limited
Report on the Audit of the Consolidated Financial Statements
Opinion the current period. These matters were addressed in Information Other than the Financial Statements and from material misstatement, whether due to fraud
the context of our audit of the consolidated financial Auditor’s Report Thereon or error, which have been used for the purpose of
We have audited the accompanying consolidated statements as a whole, and in forming our opinion preparation of the consolidated financial statements by
financial statements of Pidilite Industries Limited • The Parent’s Board of Directors is responsible the Directors of the Parent Company, as aforesaid.
thereon, and we do not provide a separate opinion for the other information. The other information
(”the Parent”) and its subsidiaries, (the Parent and on these matters. We have determined the matters
its subsidiaries together referred to as “the Group”) comprises the information included in the In preparing the consolidated financial statements,
described below to be the key audit matters to be Management Discussion and Analysis, Directors’ the respective Board of Directors of the companies
which includes the Group’s share of profit in its communicated in our report.
associate and share of loss in its joint venture, which Report including Annexures to Directors’ Report, included in the Group and of its associate and joint
comprise the Consolidated Balance Sheet as at Business Responsibility Report, Corporate venture are responsible for assessing the ability
Key Audit Matter Auditor’s Response Governance and Information for Shareholder, of the respective entities to continue as a going
31st March 2020, and the Consolidated Statement
of Profit and Loss (including Other Comprehensive Existence and condition We performed the following but does not include the consolidated financial concern, disclosing, as applicable, matters related to
Income), the Consolidated Statement of Cash Flows of Inventories of raw and alternate audit procedures to statements, standalone financial statements and going concern and using the going concern basis of
and the Consolidated Statement of Changes in Equity Packing Material, Work-in- audit the existence and condi- our auditor’s report thereon. accounting unless the respective Boards of Directors
for the year then ended, and a summary of significant progress, finished goods tion of inventories of Parent either intends to liquidate their respective entities or to
and stock in trade (Refer Company in India, as per the • Our opinion on the consolidated financial cease operations, or has no realistic alternative but to
accounting policies and other explanatory information. statements does not cover the other information
note 17 to the consolidated guidance provided in SA 501 do so.
In our opinion and to the best of our information and financial statements) “Audit Evidence – Specific and we do not express any form of assurance
according to the explanations given to us, and based Considerations for Selected conclusion thereon. The respective Boards of Directors of the companies
Items”, as at the year-end, since included in the Group and of its associate and joint
on the consideration of reports of the other auditors In connection with our audit of the consolidated
we were not able to physically venture are also responsible for overseeing the financial
on separate financial statements/ financial information observe the physical verification financial statements, our responsibility is to read
of the subsidiaries and an associate referred to reporting process of the Group and of its associate and
of inventories: the other information, compare with the financial
in the Other Matters section below, the aforesaid joint venture.
The Parent Company Evaluated the design and statements of the subsidiaries, and an associate
consolidated financial statements give the information audited by the other auditors, to the extent it relates Auditor’s Responsibility for the Audit of the
required by the Companies Act, 2013 (“the Act”) in in India has a policy of implementation of the controls
performing physical over physical verification of to these entities and, in doing so, place reliance on the Consolidated Financial Statements
the manner so required and give a true and fair view work of the other auditors and consider whether the
verification of inventories, inventory on a cyclical basis
in conformity with the Indian Accounting Standards with the assistance of and tested the operating other information is materially inconsistent with the Our objectives are to obtain reasonable assurance
prescribed under section 133 of the Act read with the appointed independent effectiveness of these controls consolidated financial statements or our knowledge about whether the consolidated financial statements as
Companies (Indian Accounting Standards) Rules, 2015, third parties, on a planned throughout the year. obtained during the course of our audit or otherwise a whole are free from material misstatement, whether
as amended (‘Ind AS’), and other accounting principles cyclical basis, for all its appears to be materially misstated. Other information due to fraud or error and to issue an auditor’s report
Due to the COVID-19 related
generally accepted in India, of the consolidated state locations, throughout the
lock-down we were not able so far as it relates to the subsidiaries and an associate, that includes our opinion. Reasonable assurance
of affairs of the Group as at 31st March 2020, and year. is a high level of assurance but is not a guarantee
to participate in the physical is traced from their financial statements audited by the
their consolidated profit, their consolidated total In accordance with such verification of inventory branch auditors and other auditors. that an audit conducted in accordance with SAs will
comprehensive income, their consolidated cash flows cyclical plan, physical that was carried out by the always detect a material misstatement when it exists.
and their consolidated changes in equity for the year verification of inventories management subsequent If based on the work we have performed, we conclude Misstatements can arise from fraud or error and are
ended on that date. at certain locations of to the year end at certain that there is a material misstatement of this other considered material if, individually or in the aggregate,
Parent Company in India, locations. Consequently, we information, we are required to report that fact. We they could reasonably be expected to influence the
Basis for Opinion which was planned to be have performed the following have nothing to report in this regard. economic decisions of users taken on the basis of these
performed as at year-end, alternate procedures to audit
We conducted our audit of the consolidated financial consolidated financial statements.
was performed by the the existence and condition of Management’s Responsibility for the Consolidated
statements in accordance with the Standards on management subsequent inventory: As part of an audit in accordance with SAs, we exercise
Financial Statements
Auditing specified under section 143 (10) of the Act to the year-end, which we professional judgment and maintain professional
a. Observed the physical
(SAs). Our responsibilities under those Standards are were unable to physically The Parent’s Company’s Board of Directors is skepticism throughout the audit. We also:
observe, due to the verification of inventories
further described in the Auditor’s Responsibility for carried out by the responsible for the matters stated in section 134(5)
the Audit of the Consolidated Financial Statements restrictions imposed on of the Act with respect to the preparation of these • Identify and assess the risks of material
account of COVID-19. Management at the selected
section of our report. We are independent of the locations subsequent to consolidated financial statements that give a true misstatement of the consolidated financial
Group, its associate and joint venture in accordance The total value of year-end through virtual and fair view of the consolidated financial position, statements, whether due to fraud or error, design
with the Code of Ethics issued by the Institute of inventory as at mediums, to determine consolidated financial performance including and perform audit procedures responsive to those
Chartered Accountants of India (ICAI) together with 31st March 2020 is 929.47 existence and condition of other comprehensive income, consolidated cash risks, and obtain audit evidence that is sufficient
the ethical requirements that are relevant to our audit crores. inventory and on a sample flows and consolidated changes in equity of the and appropriate to provide a basis for our opinion.
of the consolidated financial statements under the basis performed roll back Group including its associate and joint ventures in The risk of not detecting a material misstatement
procedures to arrive at the resulting from fraud is higher than for one resulting
provisions of the Act and the Rules made thereunder, accordance with the Ind AS and other accounting
quantities at the balance
and we have fulfilled our other ethical responsibilities principles generally accepted in India. The respective from error, as fraud may involve collusion, forgery,
sheet date.
in accordance with these requirements and the ICAI’s Board of Directors of the companies included in intentional omissions, misrepresentations, or the
Code of Ethics. We believe that the audit evidence b. For stocks held at third party the Group and of its associate and joint venture are override of internal control.
obtained by us and the audit evidence obtained by locations, obtained direct responsible for maintenance of adequate accounting
confirmation of the inventory • Obtain an understanding of internal financial
the other auditors in terms of their reports referred to records in accordance with the provisions of the
held by them as at the control relevant to the audit in order to design
in the sub-paragraph (a) of the Other Matters section Act for safeguarding the assets of the Group and its
year end. audit procedures that are appropriate in the
below, is sufficient and appropriate to provide a basis associate and its joint venture and for preventing and
c. Performed additional
circumstances. Under section 143(3)(i) of the Act,
for our audit opinion on the consolidated financial detecting frauds and other irregularities; selection and
alternate procedures which we are also responsible for expressing our opinion
statements. application of appropriate accounting policies; making
included inspection of on whether the Parent has adequate internal
judgments and estimates that are reasonable and
Key Audit Matters supporting documentation financial controls system in place and the operating
prudent; and design, implementation and maintenance
relating to purchases, sales effectiveness of such controls.
Key audit matters are those matters that, in our and production records of adequate internal financial controls, that were
professional judgment, were of most significance in relating to inventory as at operating effectively for ensuring the accuracy and • Evaluate the appropriateness of accounting
our audit of the consolidated financial statements of year end. completeness of the accounting records, relevant policies used and the reasonableness of accounting
174 to the preparation and presentation of the financial estimates and related disclosures made by the
statements that give a true and fair view and are free management.
177

• Conclude on the appropriateness of management’s From the matters communicated with those charged Our opinion on the consolidated financial f) With respect to the adequacy of the internal
use of the going concern basis of accounting and, with governance, we determine those matters statements above and our report on Other Legal financial controls over financial reporting and the
based on the audit evidence obtained, whether that were of most significance in the audit of the and Regulatory Requirements below, is not operating effectiveness of such controls, refer
a material uncertainty exists related to events or consolidated financial statements of the current modified in respect of the above matters with to our separate Report in “Annexure A” which
conditions that may cast significant doubt on the period and are therefore the key audit matters. We respect to our reliance on the work done and the is based on the auditors’ reports of the Parent,
ability of the Group and its associate and joint describe these matters in our auditor’s report unless reports of the other auditors and the financial subsidiary companies and associate company
venture to continue as a going concern. If we information certified by the Management. incorporated in India. Our report expresses
law or regulation precludes public disclosure about the
conclude that a material uncertainty exists, we are an unmodified opinion on the adequacy and
matter or when, in extremely rare circumstances, we Report on Other Legal and Regulatory
required to draw attention in our auditor’s report to operating effectiveness of internal financial
the related disclosures in the consolidated financial determine that a matter should not be communicated Requirements controls over financial reporting of those
statements or, if such disclosures are inadequate, in our report because the adverse consequences of companies.
As required by Section 143(3) of the Act, based on
to modify our opinion. Our conclusions are based doing so would reasonably be expected to outweigh
our audit and on the consideration of the reports g) With respect to the other matters to be included
on the audit evidence obtained up to the date of the public interest benefits of such communication.
of the other auditors on the separate financial in the Auditor’s Report in accordance with the
our auditor’s report. However, future events or statements/ financial information of the subsidiaries
Other Matters requirements of section 197(16) of the Act, as
conditions may cause the Group and its associate and an associate referred to in the Other Matters amended, In our opinion and to the best of our
and joint venture to cease to continue as a going (a) We did not audit the financial statements/ section above we report, to the extent applicable information and according to the explanations
concern. financial information of 32 subsidiaries, whose that: given to us, the remuneration paid by the Parent to
• Evaluate the overall presentation, structure and financial statements/ financial information reflect its directors during the year is in accordance with
a) We have sought and obtained all the information
content of the consolidated financial statements, total assets of 1,552.94 crores as at 31st March the provisions of section 197 of the Act.
and explanations which to the best of our
including the disclosures, and whether the 2020, total revenues of 945.53 crores and net knowledge and belief were necessary for h) With respect to the other matters to be included
consolidated financial statements represent the cash inflows (net) amounting to 60.34 crores the purposes of our audit of the aforesaid in the Auditor’s Report in accordance with Rule
underlying transactions and events in a manner that for the year ended on that date, as considered consolidated financial statements. 11 of the Companies (Audit and Auditors) Rules,
achieves fair presentation. in the consolidated financial statements. The
b) In our opinion, proper books of account as 2014, as amended in our opinion and to the best of
• Obtain sufficient appropriate audit evidence consolidated financial statements also include the our information and according to the explanations
required by law relating to preparation of the
regarding the financial information of the entities Group’s share of net profit of 3.03 crores for the given to us:
aforesaid consolidated financial statements
or business activities within the Group and its year ended 31st March 2020, as considered in the
have been kept so far as it appears from our i. The consolidated financial statements disclose
associate and joint venture to express an opinion consolidated financial statements, in respect of examination of those books and the reports of the impact of pending litigations on the
on the consolidated financial statements. We are an associate, whose financial statements have not the other auditors. consolidated financial position of the Group
responsible for the direction, supervision and been audited by us. These financial statements/
c) The Consolidated Balance Sheet, the and its associate
performance of the audit of the financial statements financial information have been audited by other
of such entities or business activities included in auditors whose reports have been furnished to Consolidated Statement of Profit and Loss ii. The Group and its associate did not have
the consolidated financial statements of which we including Other Comprehensive Income, the any material foreseeable losses on long-term
us by the Management and our opinion on the
are the independent auditors. For the other entities Consolidated Statement of Cash Flows and the contracts including derivative contracts.
consolidated financial statements, in so far as it
or business activities included in the consolidated Consolidated Statement of Changes in Equity
relates to the amounts and disclosures included dealt with by this Report are in agreement with iii. There has been no delay in transferring
financial statements, which have been audited
by the other auditors, such other auditors remain in respect of these subsidiaries and associate, the relevant books of account maintained for amounts, required to be transferred, to the
responsible for the direction, supervision and and our report in terms of subsection (3) of the purpose of preparation of the consolidated Investor Education and Protection Fund by the
performance of the audits carried out by them. We Section 143 of the Act, in so far as it relates to the financial statements Parent, its subsidiary companies and associate
remain solely responsible for our audit opinion. aforesaid subsidiaries and associate is based solely company incorporated in India.
d) In our opinion, the aforesaid consolidated
on the reports of the other auditors.
Materiality is the magnitude of misstatements in the financial statements comply with the Ind AS
consolidated financial statements that, individually (b) We did not audit the financial information of 2 specified under Section 133 of the Act.
For DELOITTE HASKINS & SELLS LLP
or in aggregate, makes it probable that the economic subsidiaries, whose financial information reflect e) On the basis of the written representations Chartered Accountants
decisions of a reasonably knowledgeable user of the total assets of NIL as at 31st March 2020, received from the directors of the Parent as on (Firm’s Registration No. 117366W/W-100018)
consolidated financial statements may be influenced. total revenues of NIL and net cash inflows/
We consider quantitative materiality and qualitative (outflows) amounting to NIL for the year ended 31st March 2020 taken on record by the Board of N. K. Jain
factors in (i) planning the scope of our audit work and on that date, as considered in the consolidated Directors of the Company and the reports of the Partner
in evaluating the results of our work; and (ii) to evaluate statutory auditors of its subsidiary companies
financial statements. The consolidated financial (Membership No. 045474)
the effect of any identified misstatements in the and associate company incorporated in India,
statements also include the Group’s share of UDIN 20045474AAAABG3573
consolidated financial statements. none of the directors of the Group companies
net loss of NIL for the year ended 31st March
and its associate company incorporated in India Place: Mumbai
We communicate with those charged with governance 2020, as considered in the consolidated financial is disqualified as on 31st March 2020 from Date: 17th June 2020
of the Parent and such other entities included in the statements, in respect of a joint venture, whose being appointed as a director in terms of
consolidated financial statements of which we are financial information have not been audited by Section 164 (2) of the Act.
the independent auditors regarding, among other us. These financial information are unaudited and
matters, the planned scope and timing of the audit
have been furnished to us by the Management
and significant audit findings, including any significant
and our opinion on the consolidated financial
deficiencies in internal control that we identify during
our audit. statements, in so far as it relates to the amounts
and disclosures included in respect of these
We also provide those charged with governance with subsidiaries and joint venture, is based solely
a statement that we have complied with relevant on such unaudited financial information. In our
ethical requirements regarding independence, and opinion and according to the information and
to communicate with them all relationships and other
explanations given to us by the Management,
matters that may reasonably be thought to bear on
these financial information are not material to
our independence, and where applicable, related
safeguards. the Group.
176
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT 179

To The Members of Pidilite Industries Limited for the year ended 31ST March 2020
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our
report of even date)
Report on the Internal Financial Controls Over ethical requirements and plan and perform the audit to generally accepted accounting principles, and Our aforesaid report under Section 143(3)(i) of the
Financial Reporting under Clause (i) of Sub-section 3 obtain reasonable assurance about whether adequate that receipts and expenditures of the company are Act on the adequacy and operating effectiveness of
of Section 143 of the Companies Act, 2013 (“the Act”) internal financial controls over financial reporting being made only in accordance with authorisations the internal financial controls over financial reporting
was established and maintained and if such controls of management and directors of the company; and insofar as it relates to 10 subsidiary companies and an
In conjunction with our audit of the consolidated Ind
operated effectively in all material respects. associate company, which are companies incorporated
AS financial statements of the Company as of and for (3) provide reasonable assurance regarding
in India, is based solely on the corresponding reports
the year ended 31st March 2020, we have audited the Our audit involves performing procedures to obtain prevention or timely detection of unauthorised
of the auditors of such companies incorporated
internal financial controls over financial reporting of audit evidence about the adequacy of the internal acquisition, use, or disposition of the company’s
in India.
Pidilite Industries Limited (hereinafter referred to as financial controls system over financial reporting and assets that could have a material effect on the
“Parent”) and its subsidiary companies, its associate their operating effectiveness. Our audit of internal financial statements Our opinion is not modified in respect of the above
company, which are companies incorporated in India, financial controls over financial reporting included matters.
obtaining an understanding of internal financial Inherent Limitations of Internal Financial Controls
as of that date.
Over Financial Reporting For DELOITTE HASKINS & SELLS LLP
controls over financial reporting, assessing the risk
Management’s Responsibility for Internal Financial Chartered Accountants
that a material weakness exists, and testing and Because of the inherent limitations of internal (Firm’s Registration No. 117366W/W-100018)
Controls evaluating the design and operating effectiveness financial controls over financial reporting, including
of internal control based on the assessed risk. N. K. Jain
The respective Board of Directors of the Parent, its the possibility of collusion or improper management Partner
subsidiary companies and its associate companies, The procedures selected depend on the auditor’s override of controls, material misstatements due to (Membership No. 045474)
which are companies incorporated in India, are judgement, including the assessment of the risks of error or fraud may occur and not be detected. Also, UDIN 20045474AAAABG3573
responsible for establishing and maintaining internal material misstatement of the financial statements, projections of any evaluation of the internal financial
whether due to fraud or error. Place: Mumbai
financial controls based on the internal control controls over financial reporting to future periods are
Date: 17th June 2020
over financial reporting criteria established by the We believe that the audit evidence we have obtained subject to the risk that the internal financial control
respective Companies considering the essential and the audit evidence obtained by other auditors over financial reporting may become inadequate
components of internal control stated in the of the subsidiary companies and associate company, because of changes in conditions, or that the degree
Guidance Note on Audit of Internal Financial Controls which are companies incorporated in India, in terms of compliance with the policies or procedures may
Over Financial Reporting issued by the Institute of their reports referred to in the Other Matters deteriorate.
of Chartered Accountants of India (ICAI). These paragraph below, is sufficient and appropriate to
Opinion
responsibilities include the design, implementation provide a basis for our audit opinion on the internal
and maintenance of adequate internal financial financial controls system over financial reporting of In our opinion to the best of our information and
controls that were operating effectively for ensuring the Parent, its subsidiary companies and its associate according to the explanations given to us and based
the orderly and efficient conduct of its business, company, which are companies incorporated in India on the consideration of the reports of the branch
including adherence to the respective company’s where such reporting under Section 143(3) of the auditors and other auditors referred to in the Other
policies, the safeguarding of its assets, the prevention Companies Act, 2013 is applicable. Matters paragraph below, the Parent, its subsidiary
and detection of frauds and errors, the accuracy and companies and its associate company, which are
completeness of the accounting records, and the Meaning of Internal Financial Controls Over Financial
companies incorporated in India, have, in all material
timely preparation of reliable financial information, as Reporting
respects, an adequate internal financial controls
required under the Companies Act, 2013. A company’s internal financial control over financial system over financial reporting and such internal
reporting is a process designed to provide reasonable financial controls over financial reporting were
Auditor’s Responsibility
assurance regarding the reliability of financial operating effectively as at 31st March 2020, based on
Our responsibility is to express an opinion on the reporting and the preparation of financial statements the criteria for internal financial control over financial
internal financial controls over financial reporting of for external purposes in accordance with generally reporting established by the respective companies
the Parent, its subsidiary companies and its associate accepted accounting principles. A company’s internal considering the essential components of internal
company, which are companies incorporated in financial control over financial reporting includes those control stated in the Guidance Note on Audit of
India, based on our audit. We conducted our audit policies and procedures that Internal Financial Controls Over Financial Reporting
in accordance with the Guidance Note on Audit of issued by the Institute of Chartered Accountants
Internal Financial Controls Over Financial Reporting (1) pertain to the maintenance of records that, in of India.
(the “Guidance Note”) issued by the Institute of reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the
Chartered Accountants of India and the Standards
company;
on Auditing, prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an (2) provide reasonable assurance that transactions
audit of internal financial controls. Those Standards are recorded as necessary to permit preparation
and the Guidance Note require that we comply with of financial statements in accordance with
178
consolidated statement of balance sheet consolidated statement of profit and loss 181
as at 31 st March 2020 for the year ended 31 st March 2020 ( in crores)
( in crores)

Particulars Note No. As at 31st March 2020 As at 31st March 2019 Particulars Note No. For the year ended For the year ended
ASSETS 31st March 2020 31st March 2019
1 Non-Current Assets INCOME
(a) Property, Plant and Equipment 4 1,141.95 913.32
(b) Right of Use Assets 5 147.00 - Revenue from Operations 33 7,294.47 7,077.96
(c) Capital Work-In-Progress 4 259.33 242.13 Other Income 34 149.43 146.64
(d) Goodwill 6 184.03 184.99 Total Income 7,443.90 7,224.60
(e) Other Intangible Assets 6 333.73 349.30
Expenses
(f) Investments accounted for using equity method 7 25.30 24.43
(g) Financial Assets Cost of Materials Consumed 35 2,997.71 3,265.51
(i) Investments 8 441.16 371.87 Purchases of Stock-in-Trade 383.57 396.28
(ii) Loans 11 4.09 3.06 Changes in inventories of Finished Goods, Work-in-Progress 36 21.22 (75.21)
(iii) Other Financial Assets 13 42.85 41.74 and Stock-in-Trade
(h) Income Tax Assets (net) 18 109.53 102.06
Employee Benefits Expense 37 927.22 836.66
(i) Deferred Tax Assets (net) 53 13.00 10.72
(j) Other Non-Current Assets 20 72.78 88.89 Finance Costs 38 33.60 26.07
Total Non-Current Assets 2,774.75 2,332.51 Depreciation, Amortisation and Impairment Expense 39 169.92 132.74
2 Current Assets Other Expenses 40 1,388.73 1,286.51
(a) Inventories 17 929.47 934.45
(b) Financial Assets Total Expenses 5,921.97 5,868.56
(i) Investments 9 719.73 1,151.40 Profit before Share of profit/ (loss) of Associate and 1,521.93 1,356.04
(ii) Trade Receivables 10 1,088.50 1,056.01 Joint venture, Exceptional Items and Tax
(iii) Cash and Cash Equivalents 15 692.23 128.12 Share of Profit in Associate (net of tax) 42(a) 3.03 3.60
(iv) Bank balances other than (iii) above 16 11.02 62.31
Total Share of profit/ (loss) of Associate and Joint Venture 3.03 3.60
(v) Loans 12 17.38 12.12
(vi) Other Financial Assets 14 103.18 71.61 Profit before Exceptional Items and Tax 1,524.96 1,359.64
(c) Current Tax Assets (net) 19 1.93 2.62 Exceptional Items 41 55.19 18.02
(d) Other Current Assets 21 197.51 163.36 Profit before Tax 1,469.77 1,341.62
Total Current Assets 3,760.95 3,582.00
Tax Expense
TOTAL ASSETS 6,535.70 5,914.51
EQUITY AND LIABILITIES Current Tax 53 383.99 406.58
EQUITY Deferred Tax 53 (36.27) 6.65
(a) Equity Share Capital 22 50.81 50.80 Net Tax Expense 347.72 413.23
(b) Other Equity 23 4,404.80 4,097.29
Equity attributable to owners of the Company 4,455.61 4,148.09 Profit for the year 1,122.05 928.39
Non-Controlling Interests 42(b) 215.65 207.15 Attributable to:
Total Equity 4,671.26 4,355.24 Shareholders of the Company 1,116.42 924.91
LIABILITIES
Non-Controlling Interest 42(b) 5.63 3.48
1 Non-Current Liabilities
(a) Financial Liabilities Other Comprehensive Income
(i) Borrowings 24 25.13 8.51 Items that will not be reclassified to profit or loss
(ii) Lease Liabilities 54 83.08 - Remeasurement of Defined Benefit Plan (14.63) (6.29)
(iii) Other Financial Liabilities 27 7.26 85.98
(b) Provisions 29 51.95 43.93 Income tax relating to items that will not be reclassified to 3.58 1.83
profit or loss
(c) Deferred Tax Liabilities (net) 53 82.29 120.14
Total Non-Current Liabilities 249.71 258.56 Items that will be reclassified to profit or loss
2 Current Liabilities Exchange difference on translation of foreign operation 14.59 7.23
(a) Financial Liabilities Total Other Comprehensive (Loss)/ Income 3.54 2.77
(i) Borrowings 25 143.99 102.54
(ii) Trade Payables 26 Attributable to:
- Total Outstanding Dues of Micro Enterprise 23.13 31.55 Shareholders of the Company 3.42 2.82
and Small Enterprises Non-Controlling Interest 42(b) 0.12 (0.05)
- Total Outstanding Dues of Creditors other 597.88 549.09
than Micro Enterprise and Small Enterprises Total Comprehensive Income for the year 1,125.59 931.16
(ii) Lease Liabilities 54 28.39 - Attributable to:
(iii) Other Financial Liabilities 28 668.74 497.22 Shareholders of the Company 1,119.84 927.73
(b) Other Current Liabilities 31 122.34 89.55
Non-Controlling Interest 5.75 3.43
(c) Provisions 30 21.59 19.79
(d) Current Tax Liabilities (net) 32 8.67 10.97 Earnings Per Equity Share: 46
Total Current Liabilities 1,614.73 1,300.71 Basic ( ) 21.98 18.21

Total Liabilities 1,864.44 1,559.27 Diluted ( ) 21.97 18.20
TOTAL EQUITY AND LIABILITIES 6,535.70 5,914.51
See accompanying notes to the consolidated financial statements 1 to 59 See accompanying notes to the consolidated financial statements 1 to 59
In terms of our report attached In terms of our report attached
For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Chartered Accountants Chartered Accountants
N. K. JAIN BHARAT PURI M B PAREKH N. K. JAIN BHARAT PURI M B PAREKH
Partner Managing Director Executive Chairman Partner Managing Director Executive Chairman
DIN: 02173566 DIN: 00180955 DIN: 02173566 DIN: 00180955
PRADIP KUMAR MENON PUNEET BANSAL PRADIP KUMAR MENON PUNEET BANSAL
Chief Financial Officer Company Secretary Chief Financial Officer Company Secretary
180 Place: Mumbai Place: Mumbai
Date: 17th June 2020 Place: Mumbai Date: 17th June 2020 Place: Mumbai
Statement of changes in equity 183

st
a. Equity Share Capital b. Other Equity
Amount Reserves and Surplus Equity at- Non- Total
Balance as at 1 April 2018
st
50.78 tributable Controlling Equity
Capital Securities Capital Cash Legal State Share Foreign General Retained to owners interest
Reserve Premium Redem- Subsidy Reserve Invest- Options Currency Reserve Earnings of the
Reserve ption Reserve ment Out- Trans- Company
Issue of equity shares under Employee Stock Option Scheme - 2012 (refer Note 49) 0.01 Reserve Reserve standing lation
Account Reserve
Issue of equity shares under Employee Stock Option Plan - 2016* (refer Note 49) 0.00
Profit for the year - - - - - - - - - 1,116.42 1,116.42 5.63 1,122.05
Balance as at 31st March 2019 50.80
Addition during - - - - 0.01 - - 14.47 - - 14.48 0.11 14.59
the year
Issue of equity shares under Employee Stock Option Plan - 2016 (refer Note 49) 0.01
Other Comprehen- - - - - - - - - - (11.06) (11.06) 0.01 (11.05)
Balance as at 31st March 2020 50.81 sive Income for
* Issue of equity shares under Employee Stock Option Plan - 2016 amounts to 48,550 during the year 2018-19. the year, net of
income tax
( in crores) Payment of dividends - - - - - - - - - (826.77) (826.77) - (826.77)
(including tax
b. Other Equity
thereon)
Reserves and Surplus Equity at- Non- Total
tributable Controlling Equity Payment of - - - - - - - - - - - (0.39) (0.39)
Capital Securities Capital Cash Legal State Share Foreign General Retained to owners interest dividends to Non-
Reserve Premium Redem- Subsidy Reserve Invest- Options Currency Reserve Earnings of the Controlling interest
Reserve ption Reserve ment Out- Trans- Company
Reserve Reserve standing lation Non-Controlling - - - - - - - - - - - 3.14 3.14
Account Reserve interest on acquisi-
tion of subsidiary/
Balance as at 0.34 - 0.50 0.95 0.24 0.15 9.03 7.31 1,335.38 2,169.36 3,523.26 175.01 3,698.27
Issue of share capital
1st April 2018
in subsidiaries
Profit for the year - - - - - - - - - 924.91 924.91 3.48 928.39
Recognition of share- - 13.20 - - - - 1.24 - - - 14.44 - 14.44
Addition of Foreign - - - - - - - 7.05 - - 7.05 0.18 7.23 based payments
Currency Translation (refer Note 49)
Reserve during the
year Transferred to - 13.20 - - - - (13.20) - - - - - -
Securities Premium
Other - - - - - - - - - (4.24) (4.24) (0.23) (4.47)
on Options exercised
Comprehensive
during the year
Income for the year,
net of
Amortised and Exer- - - - - - - 14.84 - - - 14.84 - 14.84
income tax
cised during the year
Payment of - - - - - - - - - (364.32) (364.32) - (364.32)
dividends (including Lapsed during - - - - - - (0.40) - - - (0.40) - (0.40)
tax thereon) the year
Non controlling - - - - - - - - - - - 28.71 28.71 Balance as at 0.34 23.21 0.50 0.95 0.25 0.15 10.89 28.83 1,335.38 3,004.30 4,404.80 215.65 4,620.45
interest on 31st March 2020
acquisition of
subsidiary/ Issue
of share capital in In terms of our report attached
subsidiaries
For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Recognition of - 10.01 - - - - 0.62 - - - 10.63 - 10.63
share-based
payments (refer N. K. JAIN BHARAT PURI M B PAREKH
Note 49)
Partner Managing Director Executive Chairman
Transferred to - 10.01 - - - - (10.01) - - - - - - DIN: 02173566 DIN: 00180955
Securities Premium
on Options exercised PRADIP KUMAR MENON PUNEET BANSAL

during the year Chief Financial Officer Company Secretary
Exercised during - - - - - - 1.64 - - - 1.64 - 1.64 Place: Mumbai Place: Mumbai
the year Date: 17th June 2020 Date: 17th June 2020
Amortised during - - - - - - 9.51 - - - 9.51 - 9.51
the year
Lapsed during - - - - - - (0.52) - - - (0.52) - (0.52)
the year
Balance as at 0.34 10.01 0.50 0.95 0.24 0.15 9.65 14.36 1,335.38 2,725.71 4,097.29 207.15 4,304.44
31st March 2019
182
consolidated statement of cash flows consolidated statement of cash flows 185

st
st
For the year ended For the year ended For the year ended For the year ended
31st March 2020 31st March 2019 31st March 2020 31st March 2019
A Cash Flows From Operating Activities C Cash Flows from Financing Activities
Profit before tax 1,469.77 1,341.62 Proceeds from issue of Equity Instruments of the Company 0.01 0.01
Adjustments for: Payment of Lease Liabilities (34.02) -
Share of profit from Associate (3.03) (3.60) Net increase/ (decrease) in Current Borrowings 10.77 (10.22)
Finance costs recognised in Statement of Profit and Loss 33.60 26.07 Net increase in Non-Current Borrowings 22.03 1.07
Interest income recognised in Statement of Profit and Loss (12.46) (20.60)
Proceeds from Share Capital issued to Minority 2.75 28.71
Dividend income recognised in Statement of Profit and Loss (11.59) (10.02)
Dividend paid on Equity Shares (including tax thereon) (825.36) (363.45)
Dividend from Associate 2.16 2.43
Interest paid (25.39) (16.68)
Exceptional Item - Impairment in value of Assets and 55.19 18.02
Investments Net cash used in Financing Activities [C] (849.21) (360.56)
(Profit)/ Loss on disposal of Property, Plant and Equipment (2.67) 1.71 Net increase/ (decrease) in Cash and Cash Equivalents 533.28 (28.92)
[A+B+C]
Net gain arising on financial assets designated at FVTPL (109.79) (88.09)
Cash and Cash Equivalents at the beginning of the year 72.94 102.14
Allowance for Doubtful Debts 8.45 9.78 (refer Note 15)
Depreciation, Amortisation and Impairment Expense 169.92 132.74 Bank unrealised gain 0.33 0.05
Unrealised Foreign Exchange loss (Net) 6.90 6.26 Cash and Cash Equivalents at the beginning of the year 73.27 102.19
Provision for Employee Benefits (10.12) 5.91 Cash and Cash Equivalents at the end of the year 606.37 72.94
Provision/ Write back of Warranties and Others 5.31 0.28 (refer Note 15)
Expense recognised in respect of Equity-Settled 14.44 10.64 Bank Unrealised Gain 0.18 0.33
Share-Based Payments Cash and Cash Equivalents at the end of the year 606.55 73.27
Operating Profits before Working Capital changes 1,616.08 1,433.15
Net increase/ (decrease) in Cash and Cash Equivalents 533.28 (28.92)
Movements in Working Capital:
Notes:
(Increase)/ Decrease in Operating Assets
a) The above Cash Flow Statement has been prepared under the ‘Indirect Method’ as set out in the Indian Accounting
Trade Receivables (37.58) (127.02) Standard (Ind AS 7) - Statement of Cash Flows.
Inventories 0.02 (135.56) b) Reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from
financing activities:
Non-Current Loans (1.03) 2.85
Current Loans (5.26) (0.27) ( in crores)
Non-Current Financial Assets (1.34) (3.94) Particulars As at Cash Non-Cash As at
Other Current Financial Assets (32.57) (6.05) 31st March Flows Changes 31st March
2019 2020
Other Non-Current Non Financial Assets 2.65 (3.02) Current/
Other Current Non Financial Assets (34.15) 12.13 Non-Current
Classification
(Decrease)/ Increase in Operating Liabilities
Borrowings - Non-Current 8.51 16.62 - 25.13
Trade Payables 41.70 30.70
(7.11) (1.40) (-) (8.51)
Other Current Financial Liabilities 166.92 50.07
Borrowings - Current 47.37 10.77 - 58.14
Other Non-Current Financial Liabilities (75.61) (9.45)
(57.59) ((10.22)) (-) (47.37)
Other Current Non Financial Liabilities 32.79 10.46
Cash generated from Operations 1,672.62 1,254.05 Other Financial Liabilities
- Current portion of Non-Current Borrowings 1.69 5.41 - 7.10
Taxes paid (net of refunds) (393.07) (409.27)
Net Cash generated from Operating Activities [A] 1,279.55 844.78 (2.02) ((0.33)) (-) (1.69)
B Cash Flows from Investing Activities

In terms of our report attached
Payments for purchase of Property, Plant and Equipment, (467.13) (262.52)

Other Intangible Assets & Capital Work-In-Progress For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Proceeds from disposal of Property, Plant and Equipment & 23.20 8.77
Other Intangible Assets N. K. JAIN BHARAT PURI M B PAREKH
Payments to purchase Investments (1,438.73) (2,310.50) Partner Managing Director Executive Chairman
Proceeds on sale of Investments 1,910.03 2,078.81 DIN: 02173566 DIN: 00180955
Decrease/ (Increase) in Bank Deposits 53.03 (53.14) PRADIP KUMAR MENON PUNEET BANSAL
Chief Financial Officer Company Secretary
(Increase)/ Decrease in Other Bank Balances (1.51) 6.08
Place: Mumbai Place: Mumbai
Interest received 12.46 9.34
Dividend received 11.59 10.02
184 Net cash generated from/ (used in) Investing Activities [B] 102.94 (513.14)
notes forming part of the consolidated Notes forming part of the consolidated financial statements 187
financial statements

The financial statements of all entities used for the purpose of consolidation are drawn up to same
1 Corporate information
reporting date as that of the Parent, i.e., year ended on 31st March 2020.
Pidilite Industries Limited (the Company/ Parent), together with its subsidiaries are pioneers in consumer and The consolidated financial statements have been prepared on the following basis:
industrial speciality chemicals in India. The equity shares of the Company are listed on BSE Ltd. (BSE) and
a) The financial statements of the Parent and its subsidiaries have been consolidated on a line-by-line
National Stock Exchange of India Ltd. (NSE).
basis by adding together like items of assets, liabilities, income and expenses after eliminating
The address of its registered office is Regent Chambers, 7th Floor, Jamnalal Bajaj Marg, 208, Nariman Point, intra-group balances, intra-group transactions and resulting unrealised profits or losses in accordance
Mumbai 400 021. The address of principal place of business is Ramkrishna Mandir Road, Off Mathuradas Vasanji with Ind AS 110 “Consolidated Financial Statements”. Further, the carrying amount of the Parent’s
Road, Andheri (E), Mumbai 400 059. investments in each subsidiary and the Parent’s portion of equity of each subsidiary are eliminated
on consolidation.
2 Significant Accounting Policies b) The consolidated financial statements include the share of profit/ loss of an Associate Company and
Joint Venture which have been accounted for using equity method as per Ind AS 28 “Investment
2.1 Basis of accounting and preparation of financial statements in Associates and Joint Ventures”. The investment is initially recognised at cost, and the carrying
The consolidated financial statements of the Group have been prepared in accordance with the Indian amount is increased or decreased to recognise the investor’s share of the profit or loss (the loss being
Accounting Standards (“Ind AS”) prescribed under Section 133 of the Companies Act, 2013(‘Act’) read restricted to the cost of investment) of the investee after the acquisition date.
with Companies (Indian Accounting Standards) Rules, 2015 as amended. c) Profit or loss and each component of Other Comprehensive Income (the ‘OCI’) are attributed to
The financial statements have been prepared under the historical cost convention except for the the equity holders of the Group and to the non-controlling interests, even if this results in the non-
following items – controlling interests having a deficit balance.
a. Certain Financial Assets/ Liabilities (including derivative instruments) – at Fair value d) The excess of cost to the Group of its investments in the subsidiary companies, Joint Venture and
Associate Company over its share of equity of the subsidiary companies, at the dates on which the
b. Employee Stock Options - at Fair value investments in the subsidiary companies were made, is recognised as ‘Goodwill’ being an asset in the
The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest consolidated financial statements and is tested for impairment on annual basis. On the other hand,
crores, except otherwise indicated. where the share of equity in the subsidiaries, Joint Venture and Associate Company as on the date of
investment is in excess of cost of investments of the Group, it is recognised as ‘Capital Reserve’ and
2.2 Basis of consolidation shown under the head ‘Reserves & Surplus’, in the consolidated financial statements.
The consolidated financial statements comprise the financial statements of Pidilite Industries Limited (the e) Minority Interest in the net assets of the consolidated subsidiaries consist of the amount of equity
“Parent”) and its subsidiaries (together referred to as “Group”) and Group’s share of profit/ loss in its attributable to the minority shareholders at the date on which investments in the subsidiary companies
Associate and Joint Venture as at 31st March 2020. Control exists when the Group has: were made and further movements in their share in the equity, subsequent to the dates of investments.
• power over the investee; Net profit/ loss for the year and each component of Other Comprehensive Income of the subsidiaries
attributable to minority interest is identified and adjusted against the profit after tax of the Group in
• exposure or rights, to variable returns from its involvement with the investee; and order to arrive at the income attributable to shareholders of the Company.
• ability to use its power over the investee to affect its returns. f) The difference between the cost of investments in the associate and the share of net assets at the
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there time of acquisition of shares in the associate is identified in the consolidated financial statements as
are changes to one or more of the three elements of control listed above. Goodwill or Capital Reserve as the case may be.
Generally, there is a presumption that a majority of voting rights result in control. When the Group has less g) Goodwill arising on consolidation is not amortised but tested for impairment.
than a majority of the voting rights of an investee, it has power over the investee when the voting rights 2.3 Business Combination
are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred
Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights
in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date
in an investee are sufficient to give it power, including:
fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of
• the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the the acquiree and the equity interest issued by the Group in exchange of control of acquiree. Acquisition-
other vote holders; related costs are recognised in Consolidated Statement of Profit and Loss as incurred.
• potential voting rights held by the Group, other vote holders or other parties; Where the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured
• rights arising from other contractual arrangements; and
at its acquisition-date fair value and included as a part of the consideration transferred in a business
• any additional facts and circumstances that indicate that the Group has, or does not have, the current combination. Changes in the fair value of the contingent consideration that qualify as measurement
ability to direct the relevant activities at the time that decisions need to be made, including voting period adjustments are adjusted retrospectively, with corresponding changes against goodwill or
patterns at previous shareholders meetings. capital reserve, as the case maybe. Measurement period adjustments are adjustments that arise from
additional information obtained during the ‘measurement period’ (which cannot exceed one year from
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when
the acquisition date) about facts and circumstances that existed at the acquisition date. Contingent
the Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or
consideration that is classified as an asset or a liability is subsequently (after the measurement period)
disposed off during the year are included in the Consolidated Statement of Profit and Loss from the date remeasured at subsequent reporting dates with the corresponding gain or loss being recognised in
the Company gains control until the date when the Group ceases to control the subsidiary. Consolidated Statement of Profit and Loss.
If the Group losses control over a subsidiary, it derecognises the related assets (including goodwill), In case of business combinations involving entities under common control, the above policy does
liabilities, non-controlling interest and other components of equity. Any investment retained is measured not apply. Business combinations involving entities under common control are accounted for using
at fair value. Any resultant gain or loss is recognised in the Consolidated Statement of Profit and Loss. the pooling of interests method. The net assets of the transferor entity or business are accounted at
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity their carrying amounts on the date of the acquisition subject to necessary adjustments required to
transaction. harmonise accounting policies. Retained earnings appearing in the financial statements of the transferor
is aggregated with the corresponding balance appearing in the financial statements of the transferee.
The consolidated financial statements are prepared using uniform accounting policies for like transactions Identity of the reserves appearing in the financial statements of the transferor is preserved and appears
and other events in similar circumstances. When necessary, adjustments are made to the financial in the financial statements of the transferee in the same form. Any excess or shortfall of the consideration
statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. paid over the share capital of transferor entity or business is recognised as capital reserve under equity.
186
Notes forming part of the consolidated financial statements Notes forming part of the consolidated financial statements 189

2.4 Goodwill 2.6 Revenue Recognition
Goodwill is measured as the excess of the consideration transferred over the net of acquisition-date The Group recognises revenue from sale of goods and services, based on the terms of contract and as
amounts of the identifiable assets acquired and the liabilities assumed. per the business practise; the Group determines transaction price considering the amount it expects
to be entitled in exchange of transferring promised goods or services to the customer. Revenue is
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition
recognised when it is realized or is realizable and has been earned after the deduction of variable
of the business less accumulated impairment losses, if any.
components such as discounts, rebates, incentives, promotional couponing and schemes. The Group
For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units estimates the amount of variable components based on historical, current and forecast information
(or groups of cash-generating units) that is expected to benefit from the synergies of the combination. available and either expected value method or most likely method, as appropriate and records a
corresponding liability in other payables; the actual amounts may be different from such estimates.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
These differences, which have historically not been significant, are recognised as a change in
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the
management estimate in a subsequent period.
cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata 2.6.1.a Sale of goods
based on the carrying amount of each assets in the unit. Any impairment loss for goodwill is recognised Revenue is recognised when control of the products being sold has been transferred to a customer and
directly in Consolidated Statement of Profit and Loss. An impairment loss recognised for goodwill is not when there are no longer any unfulfilled obligations to the customer. This is generally on delivery to
reversed in subsequent periods. the customer but depending on individual customer terms, this can be at the time of dispatch, delivery
The Group’s policy for goodwill arising on business combination or acquisition of an associate and a Joint or upon formal customer acceptance. This is considered the appropriate point where the performance
Venture is described at Note 2.5. obligations in our contracts are satisfied and the Group no longer has control over the inventory. Sales
are net of GST.
2.5 Investments in Associates and Joint Ventures
Advance received from customer before transfer of control of goods to the customer is recognised as
An associate is an entity over which the Group has significant influence. Significant influence is the power contract liability.
to participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. 2.6.1.b Sale of Services
Revenue from sale of services includes fixed price contracts and time and material contracts and is
A Joint Venture is a joint arrangement whereby the parties that have joint control of the arrangement
recognised as sale, as and when the related services are performed and certified by the client. Services
have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing
performed and not certified by the client, are recognised as sales and are recorded as uncertified revenue
of control of an arrangement, which exists only when decisions about the relevant activities require
and unbilled revenue. Incomplete services are recorded at cost as work-in-progress.
unanimous consent of the parties sharing control.
The Group accounts for provision of warranty in accordance with Ind AS 37 “Provisions, Contingent
An investment in an associate or a Joint Venture is accounted for using the equity method from the date
Liabilities and Contingent Assets”.
on which the investee becomes an associate or a Joint Venture.
2.6.2 Dividend, Interest income and Royalty
Under the equity method, an investment in an associate or a Joint Venture is initially recognised in the
Consolidated Balance Sheet at cost and adjusted thereafter to recognise the Group’s share of the profit Dividend income from investments is recognised when the Group’s right to receive dividend is established.
or loss and Other Comprehensive Income of the associate or Joint Venture. Distributions received from Interest income from a financial asset is recognised on a time basis, by reference to the principal
an associate or a Joint Venture reduce the carrying amount of the investment. When the Group’s share of outstanding using the effective interest method provided it is probable that the economic benefits
losses of an associate or a Joint Venture exceeds the Group’s interest in that associate or Joint Venture associated with the interest will flow to the Group and the amount of interest can be measured reliably.
(which includes any long-term interests that, in substance, form part of the Group’s net investment in The effective interest rate is the rate that exactly discounts estimated future cash receipts through the
the associate or Joint Venture); the Group discontinues recognising its share of further losses. Additional expected life of the financial asset to the gross carrying amount of that financial asset.
losses are recognised only to the extent that the Group has incurred legal or constructive obligations or
Royalty revenue is recognised on an accrual basis in accordance with the substance of the relevant
made payments on behalf of the associate or Joint Venture.
agreement or underlying arrangement in case of sales provided that it is probable that the economic
On acquisition of the investment in an associate or a Joint Venture, any excess of the cost of the benefits associated with the royalty shall flow to the Group and the amount of royalty can be
investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the measured reliably.
investee is recognised as goodwill, which is included within the carrying amount of the investment. Any Claims/ Insurance Claim etc. are accounted for when no significant uncertainties are attached to their
excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of eventual receipt.
the investment, after reassessment, is recognised directly in equity as capital reserve.
The Group’s policy for recognition of revenue (rental income) from leases is described in Note 2.7.1.
After application of the equity method of accounting, the Group determines whether there is any
objective evidence of the impairment as a result of one or more events that occurred after the initial 2.7 Leasing
recognition of the net investment in an associate or Joint Venture and that event (or events) has an The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. A
impact on the estimated future cash flows from the net investment that can be reliably estimated. If there contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset
exists such an objective evidence of impairment, then it is necessary to recognise impairment loss with for a time in exchange for a consideration. This policy has been applied to contracts existing and entered
respect to the Group’s investment in an associate or Joint Venture. into on or after 1st April 2019.
When necessary, the entire carrying amount of the investment (including goodwill) is tested for 2.7.1 Group as Lessor
impairment in accordance with Ind AS 36 Impairment of Assets as a single asset by comparing its Rental income from leases is recognised on a straight-line basis over the term of the relevant lease.
recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Where the rentals are structured solely to increase in line with expected general inflation to compensate
Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that for the Group’s expected inflationary cost increase, such increases are recognised in the year in which
impairment loss is recognised in accordance with Ind AS 36 to the extent that the recoverable amount of such benefits accrue.
the investment subsequently increases.
Amounts due under finance leases are recognised as receivables at the amount of the Group’s net
When a group entity transacts with an associate or a Joint Venture of the Group, profits and losses investment in the leases.
resulting from the transactions with the associate or Joint Venture are recognised in the Group’s
Finance lease income is allocated over accounting periods so as to reflect constant periodic rate of return
consolidated financial statements only to the extent of interests in the associate or Joint Venture that are
of the Group’s net investment outstanding in respect of the leases.
not related to the Group.
188

2.7.2 Group as Lessee reasonably certain to be exercised, in measuring the lease liability in accordance with Ind AS 116 and
discounting the lease liabilities to the present value under Ind AS 116.
The Group’s lease asset classes primarily consist of leases for land and buildings. The Group assesses
whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the The Group has applied the incremental borrowing rate to derive lease liabilities as at 1st April 2019.
contract conveys the right to control the use of an identified asset for a period of time in exchange for 2.8 Foreign Currencies
consideration. To assess whether a contract conveys the right to control the use of an identified asset,
the Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has The functional currency of the Parent and its Indian Subsidiaries is the Indian Rupee, whereas the
substantially all of the economic benefits from use of the asset through the period of the lease and functional currency of Foreign Subsidiaries is the currency of their countries of domicile. In preparing
(iii) the Group has the right to direct the use of the asset. the financial statements of each individual Group entity, transactions in currencies other than the
entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the
At the date of commencement of the lease, the Group recognizes a right-of-use asset (“ROU”) and a dates of the transactions. At the end of each reporting period, monetary items (including financial assets
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a and liabilities) denominated in foreign currencies are retranslated at the rates prevailing at that date.
term of twelve months or less (short - term leases) and low value leases. For these short-term and low Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated
value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis at the rates prevailing at the date when the fair value was determined. Non-monetary items that are
over the term of the lease. measured in terms of historical cost in a foreign currency are not retranslated. Gains or losses arising
Certain lease arrangements includes the options to extend or terminate the lease before the end of the from these translations are recognised in the Consolidated Statement of Profit and Loss. For the purposes
lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they of presenting these consolidated financial statements, the assets and liabilities of the Group’s foreign
will be exercised. operations are translated into Indian Rupees using exchange rates prevailing at the end of each reporting
period. Income and expense items are translated at the average exchange rates for the period.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease plus 2.9 Share-based payment transactions of the Group
any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated Equity-settled share-based payments to employees providing similar services are measured at the fair
depreciation and impairment losses. value of the equity instruments at the grant date.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will
recoverability whenever events or changes in circumstances indicate that their carrying amounts may eventually vest, with a corresponding increase in equity.
not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the
2.10 Taxation
fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset
does not generate cashflows that are largely independent of those from other assets. In such cases, the Income tax expense represents the sum of the tax currently payable and deferred tax. .
recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. 2.10.1 Current Tax
The lease liability is initially measured at amortized cost at the present value of the future lease The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before
payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily tax’ as reported in the Consolidated Statement of Profit and Loss because of items of income or expense
determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s
liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Group current tax is calculated using applicable tax rates that have been enacted or substantively enacted by
changes its assessment if whether it will exercise an extension or a termination option. the end of the reporting period and the provisions of the Income Tax Act, 1961 and other tax laws, as
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments applicable.
have been classified as financing cash flows. 2.10.2 Deferred Tax
Transition Deferred tax is recognised on temporary differences between the carrying amounts of assets and
Effective 1st April 2019, the Group adopted Ind AS 116 “Leases” and applied the standard to all lease liabilities in the consolidated financial statements and the corresponding tax bases used in the
contracts existing on 1st April 2019 using the modified retrospective method and has taken the cumulative computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary
adjustment to retained earnings, on the date of initial application. Consequently, the Group recorded the differences. Deferred tax assets are generally recognised for all deductible temporary differences to the
lease liability at the present value of the lease payments discounted at the incremental borrowing rate and extent that it is probable that taxable profits will be available against which those deductible temporary
the right of use asset at its carrying amount as if the standard had been applied since the commencement differences can be utilised.
date of the lease, but discounted at the Group’s incremental borrowing rate at the date of initial The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
application. Comparatives as at and for the year ended 31st March 2019 have not been retrospectively to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part
adjusted and therefore will continue to be reported under the accounting policies included as part of our of the asset to be recovered.
Annual Report for year ended 31st March 2019.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
The Group has used the following practical expedients when applying the modified retrospective which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted
approach to leases previously classified as operating leases applying Ind AS 17: or substantively enacted by the end of the reporting period.
i) Applied single discount rate to a portfolio of leases with reasonably similar characteristics. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
ii) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than from the manner in which the Group expects, at the end of the reporting period, to recover or settle the
12 months of lease term on the date of initial application. carrying amount of its assets and liabilities.
iii) Excluded initial direct costs for the measurement of the right-of-use asset at the date of initial 2.10.3 Current and Deferred Tax for the year
application, and Current and deferred tax are recognised in the Consolidated Statement of Profit and Loss, except when
they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which
iv) Applied the practical expedient to grandfather the assessment of which transactions are leases.
case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in
Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under
equity respectively.
Ind AS 17.
2.11 Property, Plant and Equipment
v) using hindsight in determining the lease term where the contract contains options to extend or
terminate the lease. 2.11.1 Property, Plant and Equipment acquired separately
The difference between the lease obligation recorded as of 31st March 2019 under Ind AS 17 disclosed Freehold Land is stated at cost and not depreciated.
under annual consolidated financial statements forming part of 2019 Annual Report and the value of the Buildings, plant and machinery, vehicles, furniture and office equipments are stated at cost less
lease liability as of 1st April 2019 is primarily on account of inclusion of extension and termination options accumulated depreciation and accumulated impairment losses.
190

An item of Property, Plant and Equipment is derecognised upon disposal or when no future economic no intangible asset can be recognised, development expenditure is recognised in Consolidated
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the Statement of Profit and Loss in the period in which it is incurred.
disposal or retirement of an item of Property, Plant and Equipment is determined as the difference
Subsequent to initial recognition, internally generated intangible assets are reported at cost less
between the sales proceeds and the carrying amount of the asset and is recognised in Consolidated
Statement of Profit and Loss. accumulated amortization and accumulated impairment losses, on the same basis as intangible
assets acquired separately.
2.11.2 Capital Work-In-Progress
2.12.4 Useful lives of Intangible Assets
Properties in the course of construction for production, supply or administrative purposes are carried
Estimated useful lives of the Intangible Assets are as follows:
at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying
assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Such properties Type of Asset Useful Life
are classified and capitalised to the appropriate categories of Property, Plant and Equipment when
completed and ready for intended use. Depreciation of these assets, on the same basis as other property Computer Software 5-10 years
assets, commences when the assets are ready for their intended use. Technical Knowhow 10-15 years
2.11.3 Depreciation Non-Compete Fees 10-15 years
Depreciation is recognised so as to write off the cost of assets (other than Freehold Land and Capital Copyrights Indefinite Life
Work-In-Progress) less their residual values over their useful lives, using the straight-line method as per Trademark 10 years-Indefinite Life
the useful life prescribed in Schedule II to the Companies Act, 2013.
For certain items of Property, Plant and Equipment, the Group depreciates over estimated useful life 2.13 Impairment of Tangible and Intangible Assets other than Goodwill
which are different from the useful lives prescribed under Schedule II to the Companies Act, 2013 At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible
which is based upon technical assessment made by technical expert and management estimate. The assets to determine whether there is any indication that those assets have suffered an impairment loss.
management believes that these estimated useful lives are realistic and reflect fair approximation of If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
the period over which the assets are likely to be used. The estimated useful lives, residual values and extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an
depreciation method are reviewed at the end of each reporting period, with the effect of any changes in individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the
estimate accounted for on a prospective basis. asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets
are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest
Estimated useful lives of the assets are as follows: group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Type of Asset Useful Life Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested
for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Buildings 20-60 years Intangible assets with indefinite useful lives are tested for impairment annually at the cash-generating
unit level. The assessment of indefinite useful life is reviewed annually to determine whether the indefinite
Leasehold Improvements 5-20 years life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a
Plant and Machinery 1-25 years prospective basis.
Recoverable amount is the higher of fair value less costs of disposal and value in use.
Vehicles 1-10 years
If the recoverable amount of the asset (or cash-generating unit) is estimated to be less than its carrying
Furniture and Fixtures 3-15 years amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.
An impairment loss is recognised in Consolidated Statement of Profit and Loss.
Office Equipment 1-20 years
2.14 Inventories
2.12 Intangible Assets Inventories are valued at lower of cost and net realisable value.
2.12.1 Intangible assets acquired separately Cost of inventories is determined on weighted average. Cost for this purpose includes cost of direct
materials, direct labour and appropriate share of overheads. Net realisable value represents the estimated
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
selling price in the ordinary course of business less all estimated costs of completion and estimated costs
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis
necessary to make the sale.
over their estimated useful lives. The estimated useful life and amortisation method are reviewed at
the end of each reporting period, with the effect of any changes in estimate being accounted for on a Obsolete, defective, unserviceable and slow/ non-moving stocks are duly provided for and valued at net
prospective basis. realisable value.
Intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses. 2.15 Provisions (other than Employee Benefits)
2.12.2 Intangible assets acquired in a business combination A provision is recognised when as a result of past event, the Group has a present legal or constructive
obligation that can be reliably estimated, and, it is probable that an outflow of economic benefit will be
Intangible assets other than goodwill acquired in a business combination are initially recognised at their required to settle the obligation.
fair value at the acquisition date (which is regarded as their cost).
Provisions (excluding retirement benefits) are determined based on the best estimate required to settle
Subsequent to initial recognition, such intangible assets acquired in a business combination are reported the obligation at the balance sheet date, taking into account the risks and uncertainties surrounding
at cost less accumulated amortisation and accumulated impairment losses, on the same basis as the obligation. These are reviewed at each Balance Sheet date and adjusted to reflect the current best
intangible assets that are acquired separately. estimates.
2.12.3 Internally generated Intangible Assets – Research and Development Expenditure Contingent liabilities are not recognised but disclosed in the Notes to the consolidated financial
statements.
Expenditure on research activities is recognised in Consolidated Statement of Profit and Loss in the
period in which it is incurred. 2.16 Financial Instruments
An internally generated intangible asset arising from development is recognised if and only if it 2.16.1 Initial Recognition and Measurement
meets the recognition criteria of intangible assets. The amount initially recognised is the sum total of Financial assets and financial liabilities are recognised when a Group entity becomes a party to the
expenditure incurred from the date when the intangible asset first meets the recognition criteria. Where contractual provisions of the instruments.
192

At initial recognition, financial assets and financial liabilities are initially measured at fair value. Transaction 2.18 Segment Reporting
costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
The Group identifies primary segments based on the dominant source, nature of risks and returns
(other than financial assets and financial liabilities at Fair Value Through Profit and Loss) are added to or and the internal organisation and management structure. The operating segments are the segments
deducted from the value of the financial assets or financial liabilities, as appropriate, on initial recognition. for which separate financial information is available and for which operating profit/ loss amounts are
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at Fair evaluated regularly by the Chief Operating Decision Maker (CODM) in deciding allocation of resources
Value Through Profit and Loss are recognised in Consolidated Statement of Profit and Loss. and in assessing performance.
2.16.2
Subsequent measurement of Financial Assets The accounting policies adopted for segment reporting are in line with the accounting policies of
All recognised financial assets are subsequently measured in their entirety at either amortised cost or the Group. Segment revenue, segment expenses, segment assets and segment liabilities have been
fair value, depending on the classification of the financial assets. Debt instruments that meet conditions identified to segments on the basis of their relationship to the operating activities of the segment.
based on purpose of holding assets and contractual terms of instrument are subsequently measured
Inter-segment revenue is accounted on the basis of cost plus margins. Revenue, expenses, assets and
at amortised cost using effective interest method. All other financial assets are measured at fair value.
liabilities which relate to the Group as a whole and are not allocable to segments on reasonable basis
Income is recognised on an effective interest basis for debt instruments other than those financial
have been included under “unallocated revenue/ expenses/ assets/ liabilities respectively”.
assets classified as at Fair Value Through Profit and Loss. Interest income is recognised in Consolidated
Statement of Profit and Loss and is included in the “Other income” line item. 2.19 Employee Benefits
2.16.3
Impairment of Financial Assets Employee benefits include Provident Fund, Superannuation Fund, Employee State Insurance Scheme,
Gratuity Fund, Compensated Absences, Anniversary Awards, Premature Death Pension Scheme and
The Group recognises loss allowance using expected credit loss model financial assets which are not
measured at Fair Value Through Profit and Loss. Expected credit losses are weighted average of credit Total Disability Pension Scheme.
losses with the respective risks of default occurring as the weights. Credit loss is the difference between 2.19.1
Defined Contribution Plans
all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows
The Group’s contribution to Provident Fund, Superannuation Fund, National Pension Scheme and
that the Group expects to receive, discounted at original effective rate of interest.
Employee State Insurance Scheme are considered as defined contribution plans and are charged as an
For Trade receivables, the Group measures loss allowance at an amount equal to lifetime expected credit expense based on the amount of contribution required to be made and when services are rendered by
losses. The Group computes expected credit loss allowance based on a provision matrix which takes into the employees.
account historical credit loss experience and adjusted for forward-looking information.
2.19.2 Defined Benefit Plans
2.16.4 Financial Liabilities and Equity Instruments
For defined benefit plans in the form of Gratuity Fund, the cost of providing benefits is determined using
2.16.4.1 Classification of debt or equity the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet
Debt or equity instruments issued by the Group are classified as either financial liabilities or as equity in date. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding
accordance with the substance of the contractual arrangements and the definitions of financial liability net interest) is reflected in the Consolidated Balance Sheet with a charge or credit recognised in
and equity instrument. Other Comprehensive Income in the period in which they occur. Remeasurement recognised in Other
Comprehensive Income is reflected in retained earnings and is not reclassified to profit or loss. Past
2.16.4.2
Equity Instruments
service cost is recognised immediately for both vested and the non-vested portion. The retirement
An equity instrument is any contract that evidences a residual interest in the assets of an entity after benefit obligation recognised in the Consolidated Balance Sheet represents the present value of the
deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds, defined benefit obligation, as reduced by the fair value of scheme assets. Any asset resulting from this
net of direct issue costs. calculation is limited taking into account the present value of available refunds and reductions in future
2.16.4.3 Financial Liabilities contributions to the schemes.
All financial liabilities (other than derivative financial instruments) are measured at amortised cost using 2.19.3 Short-Term and Other Long-Term Employee Benefits
effective interest method. A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave
2.16.5 Derecognition of Financial Assets and Liabilities and sick leave in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service.
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or when the Group transfers the contractual rights to receive the cash flows of the financial Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted
asset in which substantially all the risks and rewards of ownership of the financial asset are transferred, or amount of the benefits expected to be paid in exchange for the related service.
in which the Group neither transfers nor retains substantially all the risks and rewards of ownership of the
Liabilities recognised in respect of other long-term employee benefits are measured at the present value
financial asset and does not retain control of the financial asset.
of the estimated future cash outflows expected to be made by the Group in respect of services provided
The Group derecognises a financial liability (or a part of financial liability) when the contractual obligation by employees up to the reporting date.
is discharged, cancelled or expires.
2.20 Earnings per share
2.16.6 Derivative Financial Instruments
The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS
The Group holds derivative financial instruments such as foreign exchange forward contracts to hedge its is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the
exposure to foreign currency exchange rate risks. weighted average number of equity shares outstanding during the period. Diluted EPS is determined
Derivatives are initially recognised at fair value at the date the contracts are entered into. Subsequent by adjusting the profit or loss attributable to equity shareholders and the weighted average number of
to initial recognition, these contracts are measured at their fair value and changes at the end of each equity shares outstanding for the effects of all dilutive potential ordinary shares, which includes all stock
reporting period. The resulting gain or loss is recognised in Consolidated Statement of Profit and Loss options granted to employees.
immediately. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
2.17 Cash Flow Statement periods presented for any share splits and bonus shares issues including for changes effected prior to
the approval of the financial statements by the Board of Directors.
Cash flows are reported using the indirect method, whereby profit/ loss before exceptional items and tax
for the period is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of 2.21 Assets held for sale
past or future operating cash receipts or payments. Cash flows from operating, investing and financing
Sale of business is classified as held for sale, if their carrying amount is intended to be recovered
activities of the Group are segregated.
principally through sale rather than through continuing use. The condition for classification as held for
Cash and Cash Equivalents for the purpose of cash flow statement comprise of cash at bank, cash in hand sale is met when disposal business is available for immediate sale and the same is highly probable of
194 and short-term deposits with an original maturity of three months or less, as reduced by bank overdrafts. being completed within one year from the date of classification as held for sale.

2.22 Discontinued operations 3.2.3
Employee related provisions
A discontinued operation is a component of the Group’s business that represents a separate line of The costs of long-term and short-term employee benefits are estimated using assumptions by the
business that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view management. These assumptions include rate of increase in compensation levels, discount rates,
to resale. Classification as a discontinued operation occurs upon the earlier of disposal or when the expected rate of return on assets and attrition rates (disclosed in Note 51).
operation meets the criteria to be classified as held for sale.
3.2.4 Income taxes
2.23 Non-current assets and disposal groups held for sale
Significant judgements are involved in estimating budgeted profits for the calculation of advance tax
Assets of disposal groups that is available for immediate sale and where the sale is highly probable of and deferred tax and determining provision for income taxes and uncertain tax positions (disclosed
being completed within one year from the date of classification are considered and classified as assets in Note 53).
held for sale. Non-current assets and disposal groups held for sale are measured at the lower of carrying
amount and fair value less costs to sell. 3.2.5 Property, Plant and Equipment and Other Intangible Assets
3. Critical Accounting Judgements and key sources of Estimation Uncertainty The useful lives and residual values of Group’s assets are determined by the management at the time
The preparation of the Group’s financial statements requires management to make judgements, the asset is acquired. These estimates are reviewed annually by the management. The lives are based on
estimates and assumptions that affect the application of accounting policies, reported amounts of historical experience with similar assets as well as anticipation of future events, which may impact their
assets, liabilities, income and expenses, and accompanying disclosures, and the disclosure of contingent life, such as changes in technical or commercial obsolescence arising from changes or improvements in
liabilities. The estimates and associated assumptions are based on historical experience and other production or from a change in market demand of the product or service output of the asset.
factors that are considered to be relevant. Actual results may differ from these estimates.
3.2.6
Leases
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
The Group evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both current and ‘Leases’. Identification of a lease requires significant judgment. The Group uses significant judgement in
future periods. assessing the lease term (including anticipated renewals) and the applicable discount rate.
3.1 Critical Judgments Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted
with any option to extend or terminate the lease, if the use of such option is reasonably certain. The
3.1.1 Classification of Plus Call Technical Services LLC as a Joint Venture
Group makes an assessment on the expected lease term on a lease-by-lease basis and there by assesses
Plus Call Technical Services LLC is a limited liability company whose legal form confers separation whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In
between the parties to the joint arrangement and the LLC itself. Furthermore, there is no contractual evaluating the lease term, the Group considers factors such as any significant leasehold improvements
arrangement or any other facts and circumstances that indicate that the parties to the joint arrangement
undertaken over the lease term, costs relating to the termination of the lease and the importance of
have rights to the assets and obligations for the liabilities of the joint arrangement. Accordingly, Plus Call
the underlying asset to operations taking into account the location of the underlying asset and the
Technical Services LLC is classified as Joint Venture of the Group.
availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease
3.1.2 Classification of entities as Subsidiaries wherein Group has ownership interest and voting rights of term reflects the current economic circumstances.
50% or less
The discount rate is generally based on the incremental borrowing rate specific to the lease being
Pidilite MEA Chemicals LLC, Bamco Supply and Services Ltd and ICA Pidilite Pvt Ltd are subsidiaries
evaluated or for a portfolio of leases with similar characteristics.
of the Group even though the Group has ownership interest and voting rights of 50% or less in the
subsidiaries respectively. However, based on the relevant facts and circumstances, control and
management of these entities lie with the Group. The Group has the power to direct the relevant
activities of these entities and therefore controls these entities.
3.2 Key accounting, judgements, assumptions and estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below:
3.2.1 Impairment of Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets (i.e. trademark and copyrights) are tested for impairment on
an annual basis. Recoverable amount of cash-generating units is determined based on higher of
value-in-use and fair value less cost to sell. The impairment test is performed at the level of the cash-
generating unit or groups of cash-generating units which are benefitting from the synergies of the
acquisition and which represents the lowest level at which the intangibles are monitored for internal
management purposes.
Market related information and estimates are used to determine the recoverable amount. Key
assumptions on which management has based its determination of recoverable amount include
estimated long term growth rates, weighted average cost of capital and estimated operating margins.
Cash flow projections take into account past experience and represent management’s best estimate
about future developments.
3.2.2 Business Combinations and Intangible Assets
Business combinations are accounted for using Ind AS 103, ‘Business Combinations’. Ind AS 103 requires
the identifiable intangible assets and contingent consideration to be fair valued in order to ascertain
the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Significant
estimates are required to be made in determining the value of contingent consideration and intangible
assets. These valuations are conducted by independent valuation experts.
196

( in crores)
Notes:
4 Property, Plant and Equipment and Capital Work-In-Progress
( in crores)
As at As at
31st March 31st March a) Assets given under lease included in Note 4 above are as under:
2020 2019
As at As at
Carrying Amounts
Freehold Land 123.33 85.28 2020 2019
Buildings 381.68 289.55 Carrying Amounts
Plant and Machinery 552.22 467.01
Vehicles 7.17 7.83
Buildings 22.29 21.27
Furniture and Fixtures 34.54 31.71
Office Equipment 43.01 31.94 TOTAL 36.08 35.06
1,141.95 913.32
Capital Work-In-Progress* 259.33 242.13 Freehold Buildings Total
TOTAL 1,401.28 1,155.45 Land
* Net of Impairment 55.19 crores ( 5.92 crores as at 31st March 2019) (refer Note 41) Gross Carrying Amount
Freehold Buildings Plant and Vehicles Furniture Office TOTAL Balance as at 1st April 2018 13.79 26.12 39.91
Land Machinery and Fixtures Equipment
Disposals/ Adjustments - 0.79 0.79
Balance as at 1st April 2018 84.39 321.34 1,089.68 25.06 84.47 110.25 1,715.19
Additions 0.03 67.96 134.03 1.02 5.12 16.15 224.31 Balance as at 31st March 2019 13.79 28.20 41.99
Disposals/ Adjustments - (0.68) (38.40) (1.39) (1.01) (5.66) (47.14) Additions - 3.12 3.12
Foreign Currency Translation 0.86 2.77 1.97 0.17 0.43 (0.70) 5.50 Balance as at 31 March 2020
st
13.79 31.32 45.11
Balance as at 31st March 2019 85.28 391.39 1,187.28 24.86 89.01 120.04 1,897.86
Additions 36.73 103.95 170.62 1.14 9.57 21.91 343.92
Disposals/ Adjustments - (3.39) (16.15) (0.41) (0.19) 0.64 (19.50)
Foreign Currency Translation 1.32 6.86 4.01 0.29 1.05 0.43 13.96 Balance as at 1st April 2018 - (5.87) (5.87)
Balance as at 31st March 2020 123.33 498.81 1,345.76 25.88 99.44 143.02 2,236.24 Eliminated on disposal of assets - (0.10) (0.10)
Accumulated Depreciation and Impairment Depreciation expense - (0.96) (0.96)
Balance as at 1st April 2018 - (89.02) (672.02) (16.30) (52.01) (83.25) (912.60)
st
- (6.93) (6.93)
Eliminated on disposal of assets - 0.06 28.75 1.32 0.66 5.08 35.87
Foreign Currency Translation - (0.77) (0.69) (0.11) (0.26) (0.19) (2.02) Balance as at 31st March 2020 - (9.03) (9.03)
st
- (101.84) (720.27) (17.03) (57.30) (88.10) (984.54)
Eliminated on disposal of assets - 1.63 13.21 0.28 (1.09) (0.13) 13.90
Net Carrying Amount
Foreign Currency Translation - (1.89) (2.37) (0.21) (0.67) (0.05) (5.19)
Balance as at 31st March 2020 - (117.13) (793.54) (18.71) (64.90) (100.01) (1,094.29) Additions - 1.29 1.29
Net Carrying Amount Disposals/ Adjustments - 0.79 0.79

Balance as at 1st April 2018 84.39 232.32 417.66 8.76 32.46 27.00 802.59 Depreciation expense - (0.96) (0.96)
Additions 0.03 67.96 134.03 1.02 5.12 16.15 224.31
Depreciation Eliminated on disposal of assets - (0.10) (0.10)
st
13.79 21.27 35.06

disposal of assets
Foreign Currency Translation 0.86 2.00 1.28 0.06 0.17 (0.89) 3.48
Additions 36.73 103.95 170.62 1.14 9.57 21.91 343.92 b) Buildings include shares of co-operative societies of 0.01 crores ( 0.01 crores as at 31st March 2019)
Disposals/ Adjustments - (3.39) (16.15) (0.41) (0.19) 0.64 (19.50)


Depreciation Eliminated on - 1.63 13.21 0.28 (1.09) (0.13) 13.90
disposal of assets
Foreign Currency Translation 1.32 4.97 1.64 0.08 0.38 0.38 8.77
198 Balance as at 31 March 2020
st
123.33 381.68 552.22 7.17 34.54 43.01 1,141.95


5 Right of Use Assets Goodwill Trade- Com- Copy- Technical Com- Non Intangible Total
mark puter rights Knowhow mercial Compete assets
As at As at Software Fees Knowhow Fees under
31st March 31st March Fees develop-
2020 2019 ment
Carrying Amounts Gross Carrying Amount
Leasehold Land 67.34 -
Balance as at 1st April 2018 177.42 251.52 50.37 4.72 74.13 59.95 6.51 - 624.62
Leasehold Buildings 79.25 -
Additions 8.58 0.02 7.29 - 1.33 0.02 - - 17.24
Plant and Machinery 0.41 -
Disposals/ Adjustments - - 0.10 - - - - - 0.10
TOTAL 147.00 -
Foreign Currency Translation (1.01) (0.67) (0.08) - (0.18) - (1.10) - (3.04)
Leasehold Leasehold Plant and TOTAL Balance as at 31 March 2019
st
184.99 250.87 57.68 4.72 75.28 59.97 5.41 - 638.92
Land Buildings Machinery
Additions - - 4.39 - - - - - 4.39
Disposals/ Adjustments - (0.24) 0.23 (0.24) (0.76) - (0.02) - (1.03)
Recognised on adoption of Ind AS 116 as at 1st April 2019 (refer Note 54) 66.25 82.36 0.55 149.16
Additions 3.53 24.79 - 28.32 Foreign Currency Translation (0.96) 0.91 (0.10) - 0.06 - 0.03 - (0.06)
Foreign Currency Translation 1.34 (0.50) - 0.84 Balance as at 31st March 2020 184.03 251.54 62.20 4.48 74.58 59.97 5.42 - 642.22
Balance as at 31st March 2020 71.12 106.65 0.55 178.32

Accumulated Amortisation
and Impairment
Recognised on adoption of Ind AS 116 as at 1st April 2019 (refer Note 54) - - - - Balance as at 1st April 2018 - (8.41) (36.23) - (24.43) (11.50) (4.45) - (85.02)
Depreciation expense (3.66) (27.63) (0.14) (31.43) Eliminated on disposal - - (0.01) - - - - - (0.01)
of assets
Foreign Currency Translation (0.12) 0.23 - 0.11
Amortisation expense - (0.01) (5.78) - (6.26) (8.45) (0.53) - (21.03)
Balance as at 31st March 2020 (3.78) (27.40) (0.14) (31.32)
Foreign Currency Translation - 0.21 0.05 - 0.05 - 1.12 - 1.43
Net Carrying Amount Balance as at 31 March 2019
st
- (8.21) (41.97) - (30.64) (19.95) (3.86) - (104.63)
Recognised on adoption of Ind AS 116 as at 1st April 2019 (refer Note 54) 66.25 82.36 0.55 149.16 Eliminated on disposal - - (0.12) - 0.68 - 0.02 - 0.58
Additions 3.53 24.79 - 28.32 of assets
Depreciation expense (3.66) (27.63) (0.14) (31.43) Amortisation expense - (2.45) (4.87) - (6.31) (5.99) (0.53) - (20.15)
Foreign Currency Translation 1.22 (0.27) - 0.95 Foreign Currency Translation - (0.29) - - 0.03 - - - (0.26)
st
67.34 79.25 0.41 147.00 Balance as at 31 March 2020
st
- (10.95) (46.96) - (36.24) (25.94) (4.37) - (124.46)

Net Carrying Amount
6 Goodwill and Other Intangible Assets
As at As at Balance as at 1st April 2018 177.42 243.11 14.14 4.72 49.70 48.45 2.06 - 539.60
31 March 31st March
st
Additions 8.58 0.02 7.29 - 1.33 0.02 - - 17.24
2020 2019
Disposals/ Adjustments - - 0.10 - - - - - 0.10
Carrying Amounts
Goodwill on Consolidation 81.78 81.10
Amortisation Eliminated on - - (0.01) - - - - - (0.01)
Goodwill (acquired separately) 102.25 103.89 disposal of assets
Total Goodwill (A) 184.03 184.99 Foreign Currency (1.01) (0.46) (0.03) - (0.13) - 0.02 - (1.61)
Translation
Other Intangible Assets
Balance as at 31st March 2019 184.99 242.66 15.71 4.72 44.64 40.02 1.55 - 534.29
Trademark 240.59 242.66
Additions - - 4.39 - - - - - 4.39

Computer Software 15.24 15.71
Disposals/ Adjustments - (0.24) 0.23 (0.24) (0.76) - (0.02) - (1.03)
Copyrights 4.48 4.72
Technical Knowhow Fees 38.34 44.64
Amortisation Eliminated on - - (0.12) - 0.68 - 0.02 - 0.58
Commercial Knowhow Fees 34.03 40.02 disposal of assets
Non Compete Fees 1.05 1.55 Foreign Currency (0.96) 0.62 (0.10) - 0.09 - 0.03 - (0.32)
Translation
Total Other Intangible Assets (B) 333.73 349.30
Balance as at 31st March 2020 184.03 240.59 15.24 4.48 38.34 34.03 1.05 - 517.76
Total Intangible Assets (A+B) 517.76 534.29
The Group has estimated the useful life for some of its Copyrights & Trademark as indefinite on the basis of renewal of legal rights
200
and the management’s intention to keep it perpetually.


( in crores)
As at As at 7 Investments accounted for using equity method
Goodwill on Consolidation
Qty in crores Qty in crores
Cipy Polyurethanes Pvt Ltd (CIPY) 57.62 57.62 Carrying amount determined using the Equity method of accounting
Pidilite Bamco Ltd (Bamco) 22.27 21.57 A] Investment in Equity Instruments (Quoted)
Bhimad Commercial Co Pvt Ltd (Bhimad) 0.01 0.01 Investment in Associates (fully paid up)
Madhumala Traders Pvt Ltd (Madhumala) 0.01 0.01 Equity Shares of 1 each of Vinyl Chemicals (India) Ltd 74,51,540 1.18 74,51,540 1.18
Pidilite Industries Egypt SAE (PIE) 1.87 1.89 Add: Share in accumulated Profits/ Reserves 24.12 23.25
Total [A] 25.30 24.43
Total (A) 81.78 81.10
B] Investment in Joint Venture (fully paid up) (Unquoted)
Goodwill acquired separately*
Equity Shares of AED 1000 each of Plus Call Technical 57 0.21 57 0.21
Pidilite Industries Limited 86.11 86.11 Services LLC
Nitin Enterprises (Nitin) 0.23 0.23 Add: Share in accumulated Profits/ Reserves 1.56 1.56
Building Envelope Systems India Ltd (BESI) 0.55 0.55 1.77 1.77
Less: Impairment in value of Investments* (1.77) (1.77)
Nina Percept Pvt Ltd (Nina Percept) 5.13 5.13
Total [B] - -
ICA Pidilite Pvt Ltd (ICA) 2.08 2.08
TOTAL [(A)+(B)] 25.30 24.43
Pulvitec do Brasil Industria e Commercio de Colas e Adesivos Ltda (Pulvitec) 7.63 9.30 *During the year, Group has recognised impairment amounting to Nil crores ( 1.77 crores for the year ended 31st March 2019) for
Pidilite USA Inc (PUSA) 0.52 0.49 investment made in Joint Venture and Nil crores ( 4.36 crores for the year ended 31st March 2019) for the loan given to Joint
Venture (refer Note 41).
Total (B) 102.25 103.89
Total Goodwill (A+B) 184.03 184.99
*Goodwill acquired in business combination is allocated, at acquisition date, to the cash-generating units that are expected to benefit
from that business combination. Aggregate carrying value of unquoted investments - -
Goodwill, Copyrights and Trademark
Goodwill, copyrights and trademark in the books of the Group pertains mainly to Consumer and Bazaar 8 Investments - Non-Current
business (majorly consists of Consumer and Bazaar business of Parent). At the end of each reporting period,
the Group reviews carrying amount of goodwill, copyrights and trademark to determine whether there is any As at 31stMarch 2020 As at 31st March 2019
indication that goodwill, copyrights and trademark has suffered any impairment loss. Accordingly, recoverable Qty in crores Qty in crores
amount of goodwill, copyrights and trademark is arrived basis projected cashflows from Consumer and Bazaar A] Investment in Equity Instruments (fully paid up) (at FVTPL)
business. Recoverable amount of goodwill, copyrights and trademark exceeds the carrying amount of goodwill, (Unquoted)
copyrights and trademark in the books as on 31st March 2020. Further there are no external indications of Equity Shares of 10 each of Pal Peugeot Ltd 1,21,300 0.12 1,21,300 0.12
impairment of goodwill, copyrights and trademark. As a result, no impairment loss on goodwill, copyrights and
Less: Impairment in value of Investments (0.12) (0.12)
trademark is required to be recognised.
Total [A] - -
Projected cashflows from Consumer and Bazaar business (relates to Parent which represents
B] Investment in Preference Shares (at FVTPL) (Quoted)
significant portion of goodwill)
Non-Cumulative Perpetual Preference Shares of Kotak Mahindra 3,00,00,000 15.20 3,00,00,000 15.00
The recoverable amount of this cash-generating unit is determined based on a value in use calculation Bank Ltd
which uses cash flow projections based on financial budgets approved by the management approved by the
Total [B] 15.20 15.00
management for next year, estimates prepared for the next 4 years thereafter and a discount rate of 12% per
C] Investment in Debentures, Bonds & Market Instruments (at FVTPL) (Quoted)
annum (13.1% per annum as at 31st March 2019).
Units of Bharat Bond ETFs 2,50,000 25.55 - -
Cash flow projections during the budget period are based on the same expected gross margins and raw
materials price inflation throughout the budget period. The cash flows beyond that five-year period have been Total [C] 25.55 -
extrapolated using a steady 8% per annum (8% per annum as at 31st March 2019) growth rate. The management D] Investment in Alternative Investment Fund (at FVTPL) (Unquoted)
believes that any reasonably possible change in the key assumptions on which recoverable amount is based Units of Fireside Ventures Investment Fund II 50,000 4.13 - -
would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-
Total [D] 4.13 -
generating unit.
E] Investment in Promissory Note (at FVTPL) (Unquoted)
The key assumptions used in the value in use calculations for Consumer and Bazaar cash-generating unit
Convertible Promissory Note of Clare Inc [refer Note 56 (a)] 1 3.77 1 3.46
are as follows:
Total [E] 3.77 3.46
Budgeted sales growth Sales growth is assumed at 17.5% (CAGR) (14.5% as at 31st March 2019) in line F] Investments in Preference Shares (at FVTPL) (Unquoted)
with current year projections. The values assigned to the assumption reflect [refer Note 56 (b)]
past experience and current market scenario considering COVID-19 impact Compulsory Convertible Cumulative Preference Shares of 17,52,734 49.00 - -
and are consistent with the managements’ plans for focusing operations in Homevista Décor & Furnishings Pvt Ltd
these markets. The management believes that the planned sales growth per
Compulsory Convertible Non-Cumulative Preference Shares of 1,47,80,200 71.48 - -
year for the next five years is reasonably achievable. Trendsutra Platform Services Pvt Ltd
Raw materials price inflation Forecast for material cost growth CAGR higher by 0.2% (1% as at 31st March Compulsory Convertible Cumulative Preference Shares of 1,625 2.00 - -
2019) vs. sales growth, considering impact of commodity cost inflation. Aapkapainter Solutions Pvt Ltd
Other budgeted costs Commercial spends (schemes and A&SP) have been continued at current Total [F] 122.48 -
202 year’s % to sales. Other fixed costs are in line with the current year’s growth.

9 Investments - Current
Qty in crores Qty in crores As at 31stMarch 2020 As at 31st March 2019
G] Investment in Promissory Note (at amortised cost) (Unquoted) Qty in crores Qty in crores
1 5.65 1 5.20 A] Investment in Debentures, Bonds & Market Instruments

Convertible Promissory Note of Optmed Inc**
(at FVTPL) (Quoted)
Less : Impairment in value of Investments (1.41) (1.31) Tax-free bonds of Housing and Urban Development 2,00,000 21.27 2,00,000 21.04
Total [G] 4.24 3.89 Corporation Ltd
Tax-free bonds of National Housing Bank 10,000 5.59 10,000 5.48
H] Investment in Mutual Funds (at FVTPL) (Unquoted)
Tax-free bonds of Indian Railway Finance Corporation 12 Feb 22 70,000 7.57 70,000 7.56
Units of Aditya Birla Sun Life FTP-Series PJ (1135 days) - Direct 1,00,00,000 11.81 1,00,00,000 10.82
Growth Tax-free bonds of Indian Railway Finance Corporation 11 Jan 26 1,000 10.40 1,000 10.39
Units of Aditya Birla Sun Life FTP-Series PK (1132 days) - Direct 2,00,00,000 23.55 2,00,00,000 21.59 Secured, redeemable, non-convertible debentures of Citicorp - - 2,500 26.59
Growth Finance (India) Ltd
Units of DSP BlackRock FMP S223-39M - Direct Growth 1,50,00,000 17.76 1,50,00,000 16.27 Secured, redeemable, non-convertible debentures of HDB - - 250 30.38
Financial services
Units of DSP BlackRock FMP S224-39M - Direct Growth 1,50,00,000 17.67 1,50,00,000 16.21 Total [A] 44.83 101.44
Units of HDFC FMP 1143D March 2018 (1) - Direct Growth - S39 1,00,00,000 11.81 1,00,00,000 10.82 B] Investment in Mutual Funds (at FVTPL) (Unquoted)
Units of IDFC FTP Series 140 Direct Plan - Growth (1145 days) 1,50,00,000 17.73 1,50,00,000 16.25 Units of HDFC Overnight Fund - Direct Growth 6,79,896 201.88 1,68,854 47.66
Units of Kotak FMP Series 219 - Direct Growth 1,50,00,000 17.77 1,50,00,000 16.29 Units of SBI Overnight Fund - Direct Plan Growth 6,46,655 210.40 1,60,785 49.72
Units of Aditya Birla Sun Life Overnight Fund - Direct Growth 9,22,816 99.70 - -
Units of ICICI FMP Series 83 1105 D Plan F - Direct Growth 50,00,000 5.91 50,00,000 5.42
Units of ICICI Overnight Fund - Direct Growth 1,51,16,609 162.92 - -
Units of Reliance FMP XXXVII Series 12 - Direct Growth 1,00,00,000 11.83 1,00,00,000 10.83
Units of IDFC Corporate Bond Fund - Direct Plan - Growth - - 4,81,11,596 61.87
Units of Kotak FMP Series 251 - 1265 days Direct Plan Growth 2,00,00,000 23.12 2,00,00,000 21.01
Units of Reliance Banking & PSU Debt Fund - Direct
- - 5,52,03,331 75.04
Units of SBI FMP Series C33 1216 days - Direct Growth 2,00,00,000 22.69 2,00,00,000 20.66 Growth Plan
Units of SBI Debt Fund Series C49 1178 days - Direct 2,00,00,000 22.06 2,00,00,000 20.08 Units of SBI Short Term Debt Fund - Direct Plan - Growth - - 2,67,44,404 58.92
Plan Growth Units of ICICI Prudential Liquid Plan- Direct Growth - - 657 0.02
Units of HDFC FMP 1182D Jan 2019 (1) - Direct Growth 2,00,00,000 22.57 2,00,00,000 20.54 Units of ICICI Prudential Equity Arbitrage Fund - Direct Plan - - 6,02,48,585 87.31
Units of HDFC FMP 1126D Mar 2019 (1) - Direct Growth 2,00,00,000 22.21 2,00,00,000 20.20 Dividend - DR
Units of Kotak Equity Arbitrage Fund - Direct Plan Fortnightly - - 3,92,78,155 92.46
Units of IDFC FTP Series 149- Direct Plan Growth 1,50,00,000 17.26 1,50,00,000 16.17 Dividend
Units of IDFC Money Manager Fund 9,191 0.04 - - Units of Kotak Savings Fund - Direct Plan Growth - - 3,63,21,092 110.97
Units of ICICI Prudential Short Term Fund - Growth - - 1,12,15,155 45.25 Units of Aditya Birla Sun Life Banking & PSU Debt Fund - - - 15,28,949 36.99
Direct Growth
Units of Axis Banking & PSU Debt fund - Direct Plan Growth - - 1,16,058 20.54
Units of Aditya Birla Sun Life Corporate Bond Fund - Direct - - 64,44,650 46.49
Units of IDFC Banking and PSU Debt Fund - Direct - - 1,23,89,578 20.10 Plan Growth
Plan Growth Units of Aditya Birla Sun Life Equity Arbitrage Fund - Direct - - 7,90,33,020 87.13
Units of SBI Banking & PSU Debt Fund - Direct Plan Growth - - 95,378 20.47 Dvd reinvst
Units of Reliance Arbitrage Fund - Direct Dvd reinvst - - 6,98,70,243 90.08
Total [H] 265.79 349.52
Units of HDFC Short Term Debt Fund - Direct Plan Growth - - 1,77,04,254 36.88
Total [A+B+C+D+E+F+G+H] 441.16 371.87
Units of HDFC Corporate Bond Fund - Direct Plan Growth - - 2,31,55,787 48.48
Units of ICICI Prudential Bond Fund - Direct Plan Growth - - 1,31,84,101 34.82
Units of ICICI Prudential Corporate Bond Fund - Direct - - 4,33,00,226 85.12
Aggregate carrying value of unquoted investments 400.41 356.87 Plan Growth
Total [B] 674.90 1,049.96
C] Other Investments
**The Group invested in convertible promissory note of Optimed Inc., the conversion of which is subject to various covenants and an Deposits (at amortised cost)
option to convert at the sole discretion of the Group upon certain future event. Management has considered and valued this invest-
IL & FS Financial Services Limited 1.55 1.55
ment as a ‘debt instrument’ and believes that the valuation of the option can be done only after the occurrence of the specific future
event. During the year, Group has recognised impairment amounting to Nil crores ( 1.31 crores for the year ended 31st March 2019) Infrastructure Leasing & Financial Services Limited 7.25 7.25
(refer Note 41) and has written off the accrued interest receivable on the promissory notes amounting to Nil crores ( 1.10 crores for 8.80 8.80
the year ended 31st March 2019).
Less: Impairment in value of Investments* (8.80) (8.80)
Total [C] - -
TOTAL [A+B+C] 719.73 1,151.40
Aggregate carrying value of unquoted investments 674.90 1,049.96
*During the year, Group has recognised impairment amounting to Nil ( 8.80 crores for the year ended 31 March 2019) and has
st
204 written off the accrued interest receivable on the deposits amounting to Nil crores ( 1.78 crores for the year ended 31st March 2019)
(refer Note 41)

10 Trade Receivables 13 Other Financial Assets - Non-Current

2020 2019 2020 2019
Secured, Considered good 105.20 87.67 Security Deposit 19.52 16.74
Unsecured, Considered good 983.30 968.34 Fixed Deposits with Banks with original maturity of more than 12 months 3.29 3.52
Retention Money Receivable 19.99 21.47
Unsecured, Considered doubtful 77.52 68.44
Other Receivables
Unsecured which have Significant Increase in Credit Risk - -
Unsecured, Credit Impaired - -
1,166.02 1,124.45
1.79 1.75
Less: Allowance for expected credit loss (77.52) (68.44)
TOTAL 1,088.50 1,056.01 0.05 0.01
The Group has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a TOTAL 42.85 41.74
provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking
information. The expected credit loss allowance is based on the ageing of the receivables days and the rates vary with the
business of Parent and each Subsidiary. 14 Other Financial Assets - Current
Trade receivables includes receivables from Companies/firms where directors are directors/members/partners As at As at
(refer Note 47). 31st March 31st March
2020 2019
Movement in expected credit loss allowance
Security Deposit
For the For the
31st March 31st March Considered doubtful 0.55 0.45
2020 2019
9.06 8.64
Balance at the beginning of the year 68.44 58.66
Movement in expected credit loss allowance on trade receivables calculated at lifetime expected 9.08 9.78
8.51 8.19
credit losses
Derivative assets towards foreign exchange forward contracts 1.81 0.03
Balance at the end of the year 77.52 68.44
A formal credit policy has been framed and credit facilities are given to dealers within framework of credit policy. As per Retention Money Receivable
credit risk management mechanism, a policy for doubtful debt has been formulated and risk exposure related to receivable Unsecured, Considered good 17.58 13.64
are identified based on criteria mentioned in policy and provided for credit loss allowance.
11 Loans - Non-Current 19.09 14.15
As at As at Less: Allowance for doubtful balances (1.51) (0.51)

31st March 31st March 17.58 13.64
2020 2019
Uncertified Revenue from Works Contract 70.60 45.03
Other Receivables* 4.68 4.72
TOTAL 103.18 71.61
Loans to Joint Venture* 4.97 4.36 * Includes Windmill income and Insurance claim receivable.
Less: Impairment in value of loan** (4.97) (4.36)
15 Cash and Cash Equivalents
- -
As at As at
TOTAL 4.09 3.06
* Loans given for business purpose. 2020 2019
** During the year, Group has recognised impairment amounting to Nil crores ( 4.36 crores for the year ended 31st March 2019) Cash and Cash Equivalents
for the loan given to Joint Venture and Nil crores ( 1.77 crores for the year ended 31st March 2019) for investment made in Joint
Cash on Hand 0.39 0.29
Venture (refer Note 41).

Cheques on Hand 0.85 27.82
12 Loans - Current Balance with banks
As at As at In Current Account 169.22 71.70
2020 2019 In EEFC Account 12.89 20.00
Unsecured, Considered good In Fixed Deposit Accounts with original maturity of 3 months or less 508.88 8.31
TOTAL 692.23 128.12
Cash and Cash Equivalents (as above) 692.23 128.12
TOTAL 17.38 12.12
Cash Credits and Bank Overdrafts (refer Note 25) (85.86) (55.18)
*Loans given for business purpose.
206 Cash and Cash equivalents (as per Statement of Cash Flows) 606.37 72.94

16 Bank Balances other than Cash and Cash Equivalents above 19 Current Tax Assets (net)
2020 2019 2020 2019
Balance with banks Advance Payment of Taxes (net of provisions) 1.93 2.62
In Escrow Account 0.14 0.04 TOTAL 1.93 2.62
Other Bank Balance
In Fixed Deposit Accounts with original maturity of more than 12 months (refer Note a) - 0.29 20 Other Non-Current Assets
In Fixed Deposit Accounts with original maturity of more than 3 months but upto 7.62 60.13 As at As at
12 months (refer Note a) 31st March 31st March
Earmarked Account 2020 2019
Dividend Payment Bank Account 3.26 1.85
Capital Advances 47.50 19.93
TOTAL 11.02 62.31
Prepaid Expenses 0.27 41.53
a. Includes Fixed Deposit under lien 0.99 2.57
Balance with Government Authorities* 25.01 27.43
TOTAL 72.78 88.89

17 Inventories (at lower of cost and net realisable value)
* Includes amounts paid under protest against Sales Tax claims disputed by the Company (shown under contingent liabilities), Excise
As at As at Duty rebates, GST receivable, etc.
2020 2019
Raw Material and Packing Material 420.44 404.72 21 Other Current Assets
Work-in-Progress 78.75 84.02 As at As at
Finished Goods 312.62 321.24 2020 2019
Stock-in-Trade (acquired for trading) 111.30 118.63 Export Benefits receivable
Stores and Spares 6.36 5.84 Unsecured, Considered good 11.14 11.63
TOTAL 929.47 934.45 Considered doubtful - 0.20
Included above Goods-in-Transit 11.14 11.83
Raw Material and Packing Material 41.79 43.99 Less: Allowance for doubtful balances - (0.20)
Work-in-Progress 1.87 1.80 11.14 11.63
Finished Goods 41.15 43.90 Balance with Government Authorities*
Stock-in-Trade (acquired for trading) 8.69 6.28 Unsecured, Considered good 126.88 111.77
TOTAL 93.50 95.97 Considered doubtful 0.08 0.07
a. The cost of inventories recognised as an expense during the year in respect of continuing operations was 3,402.50 126.96 111.84
crores ( 3,586.58 crores for the year ended 31st March 2019). Less: Allowance for doubtful balances (0.08) (0.07)
b. The cost of inventories recognised as an expense includes 0.37 crores in respect of write-downs of inventory to net
realisable value ( 0.27 crores for the year ended 31st March 2019). 126.88 111.77
c. The mode of valuation of inventories has been stated in Note 2.14 Advances to Vendors

18 Income Tax Assets (net) - Non-Current Considered doubtful 0.01 0.10

As at As at 45.17 26.96
2020 2019 Less: Allowance for doubtful balances (0.01) (0.10)
Advance Payment of Taxes (net of provisions) 109.53 102.06 45.16 26.86
TOTAL 109.53 102.06 Prepaid Expenses 14.33 13.10
TOTAL 197.51 163.36

* Includes input tax credit, VAT, Service Tax/ GST receivable,etc.
208

( in crores)
As at As at c. Details of shareholders holding more than 5% shares in the Company:

2020 2019 As at As at
22 Equity Share Capital
Number of % of Number of % of
Authorised Capital: Shares held Holding Shares held Holding
70,00,00,000 Equity Shares of 1 each 70.00 70.00 Shri Madhukar Balvantray Parekh 5,20,51,286 10.24 5,27,62,286 10.39

st
Shri Narendrakumar Kalyanji Parekh 5,42,73,688 10.68 5,42,73,688 10.69
TOTAL 70.00 70.00 Shri Ajay Balvantray Parekh 4,74,33,489 9.34 4,74,33,489 9.34
Issued, Subscribed and Paid-up Capital: Shri Sushilkumar Kalyanji Parekh 4,13,97,646 8.15 4,18,17,646 8.23
50,81,23,780 Equity Shares of 1 each, fully paid up 50.81 50.80
Devkalyan Sales Pvt Ltd 2,62,24,280 5.16 2,62,24,280 5.16
st
TOTAL 50.81 50.80

d. Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back
during the period of five years, immediately preceding the reporting date:
As at As at
a. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period 2020 2019
Number of in crores Number of Number of
Shares Shares Shares
Balance as at 1st April 2018 50,78,10,330 50.78
Equity Shares
Shares issued during the year on exercise of options under Employee Stock Option Scheme - 2012 1,19,400 0.01
Buy-back of Shares 50,00,000 50,00,000
Shares issued during the year on exercise of options under Employee Stock Option Plan - 2016* 48,550 0.00

e. Equity Shares reserved for issuance under Employee Stock Option Scheme/Plan:
Shares issued during the year on exercise of options under Employee Stock Option Plan - 2016 1,45,500 0.01
As at As at
Balance as at 31st March 2020 50,81,23,780 50.81 31st March 31st March
2020 2019
* Issue of equity shares under Employee Stock Option Plan-2016 amounts to 48,550 during the year 2018-19.
Number of Number of
b. Terms/ Rights attached to equity shares Shares Shares
The Company has only one class of equity shares having a par value of 1 per share. Each holder of equity shares is entitled Equity Shares of 1 each under Employee Stock Option Scheme-2012 34,200 34,200
to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Equity Shares of 1 each under Employee Stock Option Plan-2016 41,13,500 41,14,100
In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in the proportion of their shareholding.
During the year ended 31st March 2020, the Company had paid Final Dividend of 6.50 per equity share of 1 each for the
financial year 2018-19 and Interim Dividend of 7.00 per equity share of 1 each for the financial year 2019-20.
During the year ended 31st March 2019, the Company had paid Final Dividend of 6.00 per equity share of 1 each for the
210

23 Other Equity 23.4 Cash Subsidy Reserve
2020 2019 2020 2019
Capital Reserve 0.34 0.34 Balance at the beginning of the year 0.95 0.95
Securities Premium Reserve 23.21 10.01 Add/ (Less): Additions/ (Deductions) during the year - -
Capital Redemption Reserve 0.50 0.50 Closing Balance 0.95 0.95

Cash Subsidy Reserve represents subsidies received from state governments. It is not available for the distribution to
Cash Subsidy Reserve 0.95 0.95
shareholders as dividend.
Legal Reserve 0.25 0.24
23.5 Legal Reserve
State Investment Reserve 0.15 0.15
As at As at
Share Options Outstanding Account 10.89 9.65 31st March 31st March
2020 2019
Foreign Currency Translation Reserve 28.83 14.36
General Reserve 1,335.38 1,335.38 Add/ (Less) : Additions/ (Deductions) during the year 0.01 -
Retained Earnings 3,004.30 2,725.71 Closing Balance 0.25 0.24
TOTAL 4,404.80 4,097.29 According to Thai Civil and Commercial Code, the Company is required to set aside to a statutory reserve an amount
equal to at least five percent of its net profit each time the Company pays out a dividend, until such reserve reaches
ten percent of its registered share capital. The statutory reserve cannot be used for dividend payment. At present, the
statutory reserve has fully been set aside.
23.1 Capital Reserve
As at As at 23.6 State Investment Reserve
2020 2019 As at As at
Balance at the beginning of the year 0.34 0.34 2020 2019
Add/ (Less): Additions/ (Deductions) during the year - - Balance at the beginning of the year 0.15 0.15
Closing Balance 0.34 0.34 Add/ (Less): Additions/ (Deductions) during the year - -
Capital Reserve represents excess of net assets acquired in past amalgamation. It is not available for the distribution to Closing Balance 0.15 0.15
shareholders as dividend. State Investment Reserve represents subsidies received by Hybrid Coatings from state government for capital
investment. It is not available for the distribution to shareholders as dividend.
23.2 Securities Premium Reserve
As at As at 23.7 Share Options Outstanding Account
As at As at
2020 2019
Balance at the beginning of the year 10.01 - 2020 2019
Add : Premium on Shares issued against ESOP 13.20 10.01 Employees Stock Options Outstanding
Security Premium Account is created when shares are issued at premium. The Group may issue fully paid-up bonus Add : Options granted during the year 1.72 27.87
shares to its members out of the Securities Premium Reserve Account, and Group can use this reserve for Less : Transferred to Securities Premium on Options exercised during the year (13.20) (10.01)
buy-back of shares.
Less : Lapsed during the year (0.95) (1.02)
23.3 Capital Redemption Reserve Closing Balance (A) 16.95 29.38
As at As at Deferred Employees Stock Options Cost
2020 2019 Balance at the beginning of the year (19.73) (3.51)
Balance at the beginning of the year 0.50 0.50 Less : Options granted during the year (1.72) (27.87)
Add : Transferred from General Reserve on Buy-back of Shares - - Add : Amortised and exercised during the year 14.84 11.15
Closing Balance 0.50 0.50 Add : Lapsed during the year 0.55 0.50
The Group has recognised Capital Redemption Reserve on buy-back of equity shares from its General Reserve. The Closing Balance (B) (6.06) (19.73)
amount in Capital Redemption Reserve is equal to the nominal amount of equity shares bought back. The reserve can be Closing Balance (A+B) 10.89 9.65
utilised in accordance with the provisions of the Companies Act, 2013.
The above reserve relates to share options granted by the Company to its employees under its employee share option
plan. Further information about share-based payments to employees is set out in Note 49.
212

23.8 Foreign Currency Translation Reserve 25 Borrowings - Current

2020 2019 2020 2019
Balance at the beginning of the year 14.36 7.31 Secured - at amortised cost
Add : Exchange difference arising on translatory foreign operations 14.47 7.05 1) Loans repayable on demand from banks
i) Working Capital Demand Loan 39.63 27.44
ii) Cash Credit - 4.42
Foreign Currency Translation Reserve arises as a result of translating the financial statement items from the functional
currency into the Group’s presentational currency i.e. Indian Rupee. iii) Bank Overdraft 50.34 18.93
2) Amount due on Factoring 7.32 10.43
Unsecured - at amortised cost
23.9 General Reserve
Loans repayable on demand from banks
As at As at
31st March 31st March i) Working Capital Demand Loan 11.18 9.49
2020 2019 ii) Bank Overdraft 35.52 31.83
Balance at the beginning of the year 1,335.38 1,335.38 TOTAL 143.99 102.54
Add : Transferred from Statement of Profit & Loss - - Secured
Closing Balance 1,335.38 1,335.38 1) i) Secured working capital demand loan for domestic subsidiaries carries interest rate of 8.5% p.a. (9.10% - 9.35% p.a.
as at 31st March 2019) and for international subsidiaries at 11.50% - 12.43%, LIBOR + 2.7% p.a.(4.44% p.a. as at
General Reserve is created by a transfer from one component of equity to another and is not an item of Other
31st March 2019). The group working capital demand loan is secured by receivables, inventories, outstanding monies
Comprehensive Income. The same can be utilised by the Group in accordance with the provisions of the
Companies Act, 2013. and other assets.
ii) Secured cash credit facility interest rate for domestic subsidiaries is NIL (9.65% p.a. as at 31st March 2019) and
secured against hypothecation of inventory and receivables.
As at As at
iii) Secured bank overdraft for domestic subsidiaries carries interest rate of 8.90% p.a. (9.60% to 9.80% p.a. as at
2020 2019 31st March 2019) and for international subsidiaries at AWPLR + 0.35% p.a. (AWPLR + 0.35% p.a. as at 31st March 2019).
It is secured by way of charge on receivables and inventory.
23.10 Retained Earnings
2) Secured amount due on factoring for domestic subsidiaries carries interest rate (including factoring cost) of 11.00% to
Balance at the beginning of the year 2,725.71 2,169.36 11.75% p.a. (11.00% to 11.75% p.a. as at 31st March 2019). It is secured by a charge against certain trade receivables.
Add : Profit for the year 1,116.42 924.91 Unsecured

Less : Payment of Final Dividend (330.19) - 1) i) Unsecured working capital demand loan of international subsidiaries carries interest rate of 9.50% p.a. (9.94% p.a. as
at 31st March 2019).
Payment of Interim Dividend for the year 2019-20 (355.61) (304.69)
ii) Unsecured bank overdraft for international subsidiaries carries interest rate of EIBOR + 1.55% p.a.(EIBOR+ 1.85% p.a.
Tax on Dividend paid (140.97) (59.63) as at 31st March 2019).
Other Comprehensive Income for the year, net of income tax (11.06) (4.24) ( in crores)
Closing Balance 3,004.30 2,725.71 26 Trade Payables

The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the As at As at
separate financial statements of the Company and also considering requirements of the Companies Act, 2013. 31st March 31st March
2020 2019
Trade Payables
24 Borrowings - Non-Current
Total outstanding dues of micro enterprise and small enterprises 23.13 31.55
As at As at Total outstanding dues of creditors other than micro enterprise and small enterprises 597.88 549.09
2020 2019 TOTAL 621.01 580.64
Secured- Term Loan from Bank 18.60 -
27 Other Financial Liabilities - Non-Current

Unsecured- Term Loan from Bank 6.53 8.51
As at As at
TOTAL 25.13 8.51 31st March 31st March
2020 2019
i) Secured term loan for international subsidiaries at 9% - 11.97% is secured by hypothecation of plant and machineries, land
and building. BTA payable (refer Note 45 a) - 2.89
ii) Unsecured term loan from bank for an international subsidiary carries an interest rate of AWPLR - 0.50% p.a. (SLIBOR Payable on purchase of assets - 3.11
+ 0.80% p.a., AWPLR - 0.50% p.a. as at 31st March 2019). The maturity date for international subsidiaries varies from
January 2024 to October 2024 which is repayable in monthly, quarterly instalments. Gross obligation towards acquisition (refer Note 45 b) - 76.17
Retention money payable 6.79 2.99
Employees related liabilities 0.47 0.82
214 TOTAL 7.26 85.98

28 Other Financial Liabilities - Current 31 Other Current Liabilities

2020 2019 2020 2019
Unclaimed Dividend 3.25 1.85 Statutory remittances 79.40 57.10
BTA payable (refer Note 45 a) 3.12 0.46
Advance from customers 41.10 27.69
Contingent consideration payable - 7.81
Other liabilities 1.84 4.76
Payable on purchase of assets 7.39 9.60
TOTAL 122.34 89.55
Trade/ Security Deposit received 123.93 109.96
Liabilities for expenses 392.84 320.01

32 Current Tax Liabilities (net)
Gross obligation towards acquisition (refer Note 45 b) 81.23 -
As at As at
Derivative liabilities towards foreign exchange forward contracts 0.42 1.27 31st March 31st March
2020 2019
Current portion of non-current borrowings (refer Note 24) 7.10 1.69
Provision for Tax (net of Advance Tax) 8.67 10.97
Retention money payable 17.14 11.41
Employees related liabilities 32.32 33.16 TOTAL 8.67 10.97
TOTAL 668.74 497.22

33 Revenue from Operations
29 Provisions - Non-Current For the For the
As at As at 31st March 31st March
31st March 31st March 2020 2019
2020 2019
Revenue from Operations*
Sale of Products 6,985.44 6,713.40
Gratuity (net) (refer Note 51) 4.21 3.70
Sale of Services 268.72 320.62
TOTAL (A) 7,254.16 7,034.02
Anniversary Awards 0.82 1.03 Other Operating Revenue
Premature Death Pension Scheme 1.55 1.34 Scrap Sales 12.18 13.65
Total Disability Pension Scheme 0.32 0.27 Export Incentives 19.11 15.67
Other Retirement Benefits 5.29 3.91 GST Refund 3.40 8.60
Others (refer Note 55) 0.79 0.97 Others 5.62 6.02

TOTAL (B) 40.31 43.94
TOTAL 51.95 43.93
TOTAL (A+B) 7,294.47 7,077.96
* The Group disaggregated revenues from contracts with customers by customer type and by geography. The Group believes
30 Provisions - Current that this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected
by industry, market and other economic factors. For geographywise and customerwise breakup of revenue, refer Note 48.
As at As at
2020 2019 Further, the Group derives its revenue from the transfer of goods at a point in time for its major service lines. This is consistent
with the revenue information that is disclosed for each reportable segment under Ind AS 108 ‘Operating Segment’.
Gratuity (net) (refer Note 51) 2.50 4.79 Reconciliation of revenue recognised with the contracted price is as follows:
For the For the

Anniversary Awards 0.16 0.18 31 March
st
31 March
st
2020 2019
Contracted Price 7,941.25 7,635.97
Total Disability Pension Scheme 0.05 0.04 Reduction towards variable consideration components (687.09) (601.95)
Other Retirement Benefits 1.85 1.23 Revenue Recognised 7,254.16 7,034.02
Provision for warranty expenses (refer Note 55) 4.76 1.27 The reduction towards variable consideration includes discounts, rebates, incentives, promotional couponing and schemes.
TOTAL 21.59 19.79
216

34 Other Income 37 Employee Benefits Expense

2020 2019 2020 2019
Interest on: Salaries and Wages 833.74 758.34
Bank Deposit (at amortised cost) 3.34 2.75
Contribution to Provident and Other Funds (refer Note 51) 50.83 42.46
Overdue Trade Receivables 0.05 0.56
Share-based Payments to Employees (refer Note 49) 14.44 10.65
Tax Free Bonds (at FVTPL) 3.26 2.03
Staff Welfare Expenses 28.21 25.21
Income Tax Refund - 11.26
Others 5.81 4.00 TOTAL 927.22 836.66
Dividend on:
Investments in Mutual Funds and Others (at FVTPL) 11.59 10.02
38 Finance Costs
Other Non-Operating Income:
For the For the
Windmill Income 3.21 1.44 year ended year ended
Insurance claim received 0.46 0.59 2020 2019
Liabilities no longer required written back 1.59 16.21 Interest expense on:
Rental Income from Operating Leases 1.38 2.25
Borrowings 9.38 7.50
Net gain arising on financial assets designated as at FVTPL 109.79 88.09
Lease Liability (refer Note 54) 8.21 -
Profit on Sale of Assets (net) 2.67 0.72
Miscellaneous Income 6.28 6.72 Unwinding of Liabilities (refer Note 45) 8.26 11.04
TOTAL 149.43 146.64 Dealer Deposits & others 7.75 7.53
35 Cost of Materials Consumed TOTAL 33.60 26.07
For the For the

31st March 31st March 39 Depreciation, Amortisation and Impairment Expense
2020 2019 For the For the
Inventory at the beginning of the year 404.72 351.63 year ended year ended
Add: Purchases 3,013.43 3,318.60 2020 2019
3,418.15 3,670.23
Depreciation on Property, Plant and Equipment (refer Note 4) 118.46 105.79
Less: Inventory at the end of the year 420.44 404.72
Depreciation on Right of Use of Assets (refer Note 5) 31.31 -
TOTAL 2,997.71 3,265.51
Amortisation of Other Intangible Assets (refer Note 6) 20.15 21.03
36 Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade
Impairment in value of Capital Work-in-Progress (refer Note 4) - 5.92
For the For the
year ended year ended TOTAL 169.92 132.74
2020 2019
Inventories at the end of the year

Total (A) 502.67 523.89
Inventories at the beginning of the year
Total (B) 523.89 448.68
TOTAL (B-A) 21.22 (75.21)
218

( in crores)
40 Other Expenses 42 a) Associates and Joint Ventures

For the For the A. (i) Details of Associate
31st March 31st March Name of Associate Principal Place of Proportion of ownership
2020 2019 activity incorporation interest/ voting rights
and principal held by the Group
Consumption of Stores and Spares 37.58 29.63
place of As at As at
Clearing, Forwarding and Octroi Duty 297.45 279.61 business 31st March 31st March
Power and Fuel 63.07 63.06 2020 2019
Contract Labour 75.47 53.72 Vinyl Chemicals (India) Ltd Trading in 40.64% 40.64%
chemicals
Water Charges 4.12 3.37
Rent (refer Note 54) 20.35 48.95 ( in crores)
Rates and Taxes 4.80 5.72
(ii) Financial information in respect of Associate
Insurance 10.58 6.01
Particulars For the For the
License Fees 1.12 0.99 year ended year ended
Repairs : 31st March 31st March
2020 2019
Buildings 9.63 9.55
Group's share of profit 3.03 3.60
Machinery 21.27 19.77
9.32 Group's share of Other Comprehensive Income - -
Others 10.30
40.22 39.62 Group's share of Total Comprehensive Income 3.03 3.60
Directors' Fees 0.44 0.47

Advertisement and Publicity 284.64 229.89 (iii) Reconciliation with carrying amount of investment
Legal, Professional and Consultancy Fees 57.27 46.89 Particulars As at As at
Communication Expenses 31st March 31st March
9.84 16.57
2020 2019
Printing and Stationery 7.25 8.65
Net assets of the Associate excluding dividend adjustment 59.31 57.20
Travelling and Conveyance Expenses 122.13 111.64
Share in accumulated Profits/Reserves (%) 40.64% 40.64%
Bad Debts 3.88 5.01
Share in accumulated Profits/Reserves 24.12 23.25
Provision for Doubtful Debts 8.45 9.78
Processing and Packing Charges 76.80 77.51 Investment in Equity Share Capital 1.18 1.18
Sales Commission 10.34 11.28 Total Investment 25.30 24.43
Payments to Auditor (refer Note a) 2.57 2.19

Donations 0.17 0.91 B. (i) Details of Joint Venture
Corporate Social Responsibility Expenses 27.12 24.14 Name of Joint Venture Principal Place of Proportion of ownership
Loss on Fixed Assets Sold/ Discarded (net) - 2.43 activity incorporation interest/ voting rights
and principal held by the Group
Net Loss on Foreign Currency Transactions and Translation 4.13 7.96 place of As at As at
Miscellaneous Expenses 218.94 200.51 business 31st March 31st March
TOTAL 2020 2019
1,388.73 1,286.51
Plus Call Technical Services LLC Flooring, United Arab 40.00% 40.00%
a. Details of Payments to Auditors of Parent and Subsidiaries (net of taxes) (refer Note 7B) tiling, painting, Emirates
a) Auditor 2.01 1.75 concrete work
and related
b) Tax Matters 0.21 0.16
contracting
c) Other Services 0.33 0.27 activities
d) Reimbursement of Expenses
0.02 0.01
TOTAL ( in crores)
2.57 2.19
(ii) Financial information in respect of Joint Venture
41 Exceptional Items Particulars For the For the
For the For the 31st March 31st March
year ended year ended 2020 2019
31 March
st
31 March
st
2020 2019 Group's share of profit/ (loss) - -

Impairment in value of Asset held for Sale [refer Note 56(i)] 55.19 - Group's share of Other Comprehensive Income - -
Provision for Diminution/ Impairment in value of Investment - 18.02 Group's share of Total Comprehensive Income - -
(including loan given to Joint venture)
220 TOTAL 55.19 18.02

42 b) Non-Controlling Interest 43 Contingent Liabilities and Commitments

2020 2019 2020 2019
Balance at the beginning of the year 207.15 175.01 A) Contingent liabilities not provided for:
Share of Profit for the year 5.63 3.48
1. Claims against the Group not acknowledged as debts comprises of:
Share of Other Comprehensive Income for the year 0.12 (0.05)
a) Income Tax demand against the Group not provided for and relating to issues of deduction 59.96 31.37
Non-Controlling Interests arising on the acquisition of: and allowances in respect of which the Group is in appeal
Pidilite East Africa Ltd 2.11 - b) Excise Duty and Service Tax claims disputed by the Group relating to issues of 51.12 31.13
Pidilite Litokol Pvt Ltd 0.40 - classifications
c) Sales Tax (VAT, CST, Entry Tax and GST) claims disputed by the Group relating to issues of 167.08 182.14
Nina Lanka Construction Technologies (Private) Limited 0.18 -
declaration forms and classifications
Nina Percept (Bangladesh) Pvt Ltd 0.10 - d) Other Matters (relating to disputed Electricity Duty, Gram Panchayat Tax, open access 6.64 5.49
Additional non-controlling interests arising on increase in capital of : charges, etc.)
Pidilite Lanka (Pvt) Ltd 0.35 2.11 2. Guarantees given by Banks in favour of Government and others * 57.60 62.72
ICA Pidilite Pvt Ltd - 26.60
* Guarantees given are for business purpose.
Dividend paid to Non-Controlling interests
B) Commitments:
Bamco Supply and Services Ltd (0.39) -
Total 215.65 207.15 a) Estimated amount of contracts, net of advances, remaining to be executed on Property, 206.10 71.06
Plant and Equipment, investments and not provided for
b) For other commitments, refer Note 50(E)(ii) Financial instruments, 45 Business
Non-wholly owned subsidiaries of the Group that have material non-controlling interests: Combinations, 54 Lease and Note 56(b)(iii) & Note 57 for committed investment in
other entities
Name of subsidiaries Place of Proportion of ownership
C) The Supreme Court in a judgement has held that provident fund contributions are payable on basic wage, dearness
incorporation interests and voting
allowances and all other monthly allowances, which are universally, necessarily and ordinarily paid to all the employees
and principal rights held by
in the establishment across the board. There are numerous interpretative issues relating to the judgement. As such,
place of non-controlling interests
the Company has, based on legal advice and as a matter of caution, made provision for an estimated amount on a
business
As at As at prospective basis.
( in crores)
2020 2019
Nina Percept Pvt Ltd [refer Note 56(c)] India 28% 28% 44 Research & Development Expenditure
ICA Pidilite Pvt Ltd India 50% 50% For the For the
Cipy Polyurethanes Pvt Ltd India 30% 30% year ended year ended
Building Envelope Systems India Pvt Ltd India 40% 40% 2020 2019
Pidilite Lanka (Pvt) Ltd Srilanka 24% 24% Capital expenditure included in Property, Plant and Equipment 2.52 1.27
Bamco Supply and Services Ltd Thailand 49% 49%
Revenue expenditure charged to Statement of Profit and Loss 70.20 64.89
TOTAL 72.72 66.16

( in crores)
Name of subsidiaries Profit/ (Loss) allocated to Other Comprehensive Accumulated
non-controlling interests Income non-controlling interest 45 (a) During the financial year 2015-16, pursuant to a Business Transfer Agreement (BTA) entered into by the Company
As at As at As at As at As at As at with Nina Concrete Systems Private Limited (NCSPL), the Company acquired the waterproofing Business (the
31st March 31st March 31st March 31st March 31st March 31st March “Business”), including all its assumed assets and assumed liabilities, of NCSPL, a private limited company based in
2020 2019 2020 2019 2020 2019 India (the “Seller”), as a going concern and on a slump sale basis for a lump-sum consideration, with effect from
17th April 2015.
Nina Percept Pvt Ltd 0.86 2.88 0.03 (0.11) 42.03 41.14
The terms and conditions of the BTA included a total purchase consideration of 82.02 crores, out of which 78.90
[Refer Note 56(c)]
crores was paid by the Company to the Seller as of 31st March 2020. A balance amount of 3.12 crores (refer Note 28)
ICA Pidilite Pvt Ltd 0.77 (4.35) 0.07 (0.03) 122.09 121.25 including Holdback Amount will be payable by the Company to the Seller by 31st October 2020 (The original terms of
BTA agreement is extended till 15th April 2020) and the settlement of which is to be completed by 31st October 2020,
Cipy Polyurethanes Pvt Ltd 3.35 4.41 (0.11) (0.11) 27.99 24.75
post verification of books of account.
Building Envelope Systems India 0.84 0.52 0.01 - 9.51 8.66 An amount of Net Working Capital, i.e. Receivables, Inventories, Retention Monies receivables, etc which would not
Pvt Ltd have been fully realised by 15th April 2020, the settlement of which is to be completed by 31st October 2020, post
Bamco Supply and Services Ltd 0.37 0.75 (0.17) 0.08 3.59 3.78 verification of books of account), shall be deducted by the Company from the Holdback amount payable to seller or
will be recoverable from the seller.
Pidilite Lanka (Pvt) Ltd (0.29) (0.72) 0.05 0.12 7.60 7.49
(b) During the financial year 2017-18, 70% shareholding in CIPY Polyurathanes Pvt Ltd (CIPY) was acquired by entering
Individually immaterial subsidiaries (0.27) (0.01) 0.24 - 2.84 0.08 into a share purchase agreement for cash consideration of 96.40 crores.
with non-controlling interests
Pursuant to share purchase agreement, the Company has an option to purchase and the seller has an option to sell
Total 5.63 3.48 0.12 (0.05) 215.65 207.15 balance 30% of equity share capital of CIPY on or after expiry of 3 years from acquisition date i.e. on or after
8th February 2021. Accordingly, a gross liability towards acquisition (refer Note 28) has been recognised in this
222 financial statement based on a valuation report obtained from an independent valuer.

46 Earnings Per Share (EPS) 47 (iv) Transactions with Related Parties for the year ended 31st March 2020 are as follows:
The following reflects the Profit and Share data used in the Basic and Diluted EPS computations: Nature of Transaction For the year ended 31st March 2020 For the year ended 31st March 2019
For the year For the year Associate KMP/ Total Associate KMP/ Total
ended ended and Joint Significant and Joint Significant
31st March 31st March Venture Influence of Venture Influence of
2020 2019 KMP/Close KMP/Close
member of KMP member of KMP
Basic:
a. Sales and Related Income
Profit attributable to shareholders of the Company ( in crores) 1,116.42 924.91
Parekh Marketing Ltd - 73.97 73.97 - 98.70 98.70
Sub-Total (a) - 73.97 73.97 - 98.70 98.70
b. Dividend Received
Vinyl Chemicals (India) Ltd 1.79 - 1.79 2.16 - 2.16
Par value per share ( ) 1.00 1.00
Sub-Total (b) 1.79 - 1.79 2.16 - 2.16
Earning per share (Basic) ( ) 21.98 18.21 c. Purchase of Goods
Sub-Total (c) 320.83 - 320.83 552.41 - 552.41
Diluted:
d. Sale of Fixed Asset
Profit attributable to shareholders of the Company ( in crores) 1,116.42 924.91 Parekh Marketing Ltd - 0.32 0.32 - - -
Sub-Total (d) - 0.32 0.32 - - -
e. Rent Paid/ (Received)
Smt Mala Parekh - 0.71 0.71 - 0.78 0.78
Add: Effect of Employee Stock Option Scheme/Plan 1,70,850 3,18,250 Parekh Marketing Ltd - 0.08 0.08 - 0.07 0.07
Weighted average number of equity shares in calculating diluted EPS 50,81,64,074 50,82,13,871 Pargro Investment Pvt Ltd - (0.08) (0.08) - (0.06) (0.06)
Sub-Total (e) - 0.71 0.71 - 0.79 0.79
f. Reimbursement of expenses made
Par value per share ( ) 1.00 1.00
Parekh Marketing Ltd - 0.03 0.03 - - -
Earning per share (Diluted) ( ) 21.97 18.20 Sub-Total (f) - 0.03 0.03 - - -
g. Compensation of Key Management Personnel of the Company:
Remuneration/ Commission to Directors:
47 Related Party Disclosures (Short Term Employee benefits)
Related Party Disclosures as required by Ind-AS 24, ‘Related Party Disclosures’ are given below: - Shri M B Parekh - 4.15 4.15 - 3.98 3.98
- Shri Bharat Puri - 13.96 13.96 - 15.42 15.42
(i) Relationships:
- Shri A B Parekh - 1.80 1.80 - 6.58 6.58
a. Vinyl Chemicals (India) Ltd Associate - Shri A N Parekh - 5.84 5.84 - 5.57 5.57
b. Plus Call Technical Services LLC Joint Venture - Shri Sabyasachi Patnaik - 2.01 2.01 2.45 2.45
- Shri Debabrata Gupta - 0.29 0.29 - - -
c. Parekh Marketing Ltd Significant Influence of KMP
Sub-Total (g) - 28.05 28.05 - 34.00 34.00
d. Pargro Investment Pvt Ltd Significant Influence of KMP
Share-based payments
e. Kalva Marketing and Services Ltd Significant Influence of KMP Shri Bharat Puri - 16.65 16.65 - 11.03 11.03
(ii) Key Management Personnel (KMP): Shri Sabyasachi Patnaik - 0.40 0.40 - 0.37 0.37
Sub-Total - 17.05 17.05 - 11.40 11.40
a. Shri M B Parekh Executive Chairman
h. Dividend Paid - 158.25 158.25 - 68.26 68.26

b. Shri Bharat Puri Managing Director i. Outstanding Balances:
c. Shri A B Parekh Whole Time Director - Trade Receivables (net)

Parekh Marketing Ltd - 12.39 12.39 - 19.05 19.05
d. Shri A N Parekh Whole Time Director
Pargro Investment Pvt Ltd - - - - - -
e. Shri Sabyasachi Patnaik (upto 31st March 2020) Whole Time Director Sub-Total - 12.39 12.39 - 19.05 19.05
f. Shri Debabrata Gupta (from 1st March 2020) Whole Time Director - Trade Payables (net)
(iii) Close member of Key Management Personnel:
Parekh Marketing Ltd - 0.01 0.01 - - -
224 a. Smt Mala M Parekh Wife of Executive Chairman
Sub-Total (i) 23.07 0.01 23.08 49.95 - 49.95

48 Segment information
49 Employee Stock Option Scheme
Business Segment: The Company operates in two business segments namely Consumer & Bazaar (C&B) and Business to Business
(B2B). C&B segment covers sale of products mainly to end consumers which are retail users such as carpenters, painters, plumbers,
a) Details of Employee Share Options
mechanics, households, students, offices, etc. Sale consists of mainly Adhesives, Sealants, Art and craft Materials and Construction
and paint Chemicals. B2B covers sale of products to end customers which are mainly large business users. This includes Industrial In the Annual General Meeting of the Company held on 24th July 2012, the shareholders approved the issue of 50,76,486
Products (IP) such as adhesives, synthetic resins, organic pigments, pigment preparations, construction chemicals (projects),
equity shares under the Scheme titled “Employee Stock Option Scheme 2012” (ESOS 2012). The Board approved
surfactants, etc. and caters to various industries like packaging, textiles, paints, joineries, printing inks, paper, leather, etc. Others
includes sale of speciality acetates, raw materials etc. Employees Stock Option Scheme covering 3,00,000 Stock options, in terms of the regulations of the Securities and
During the year, the Company has re-organised its internal reporting, whereby the Chief Operating Decision Maker (CODM) evaluates Exchange Board of India.
the business activities and operating results of IP segments and certain business units which was until previous year shown under The ESOS 2012 allows the issue of options to Eligible employees of the Company. Each option comprises one underlying
C&B segment, are now reclassified under new B2B segment, based on customer type. Therefore, in accordance with ‘Ind AS 108 – equity share. The exercise price of each option shall be 1/- per equity share. The options vest in the manner as specified
Operating Segments’, the segment information for C&B and IP segments pertaining to these business units in respect of previous in ESOS 2012. Options may be exercised within 5 years from the date of vesting.
year reported have been regrouped, respectively to C&B and B2B segments. Operating Segment disclosures are consistent with the
information provided to and reviewed by the Managing Director (Chief Operating Decision Maker). ESOP 2016 covering grant of 45,00,000 options (including 2,50,000 Options to be granted to Eligible Employees/
( in crores) Directors of the subsidiary Companies) was approved by the shareholders through Postal Ballot on 2nd April 2016. Each
Business Segments Year 2019-20 Year 2018-19 option comprises one underlying equity share. The exercise price shall be 1/- per option or such other higher price as
Consumer Business Others Total Consumer Business Others Total may be fixed by the Board or Committee. Options to be granted under the Plan shall vest not earlier than one year but
& Bazaar to & Bazaar to not later than a maximum of six years from the date of grant of such options. In the case of Eligible Employee who has
Business Business not completed 3 years of employment as on date of the grant of Options then the Options which are due for vesting
Revenue before completion of 3 years as above, shall vest as on the completion of 3 years of employment in the Company by the
Employee concerned or as may be approved by the Nomination and Remuneration Committee. Vested Options will have
Segment Revenue 5,573.85 1,796.81 76.45 7,447.11 5,419.18 1,730.22 89.86 7,239.26
to be exercised within 3 years from the date of respective vesting
Less: Inter Segment Revenue (24.19) (127.53) (0.92) (152.64) (36.84) (122.80) (1.66) (161.30)
(at cost plus fixed margin) The following share based payment arrangements were in existence during the current & prior years:
Net Revenue 5,549.66 1,669.28 75.53 7,294.47 5,382.34 1,607.42 88.20 7,077.96
Option Series Number Grant date Vesting date Exercise Fair value at
Revenue based on geography
price ( ) grant date
India 6,132.03 6,040.46 ( )
Outside India 1,162.44 1,037.50
1 Granted on 27th July 2015-ESOS 2012 1,00,000 27.07.2015 10.04.2017 1.00 521.11
Segment Result 1,547.26 271.00 (4.55) 1,813.71 1,386.65 216.02 (7.99) 1,594.68
1,00,000 27.07.2015 10.04.2018 1.00 521.11
Unallocable Expenses (391.45) (345.40)
Unallocable Income 109.21 102.21 2 Granted on 29 January 2016-ESOS 2012
th
14,400 29.01.2016 29.01.2017 1.00 532.20
Operating Income 1,531.47 1,351.49 14,400 29.01.2016 29.01.2018 1.00 532.20
Finance Cost (33.60) (26.07) 2,500 29.01.2016 29.01.2018 1.00 525.01
Interest/ Dividend Income 24.05 30.62
2,500 29.01.2016 29.01.2019 1.00 525.01
Share of Profit of Associates/ Joint 3.03 3.60
Ventures 3 Granted on 29th July 2016-ESOS 2012 6,000 29.07.2016 29.07.2017 1.00 722.31
Profit Before Tax and Exceptional items 1,524.95 1,359.64 9,000 29.07.2016 29.07.2018 1.00 722.31
Exceptional items 55.19 18.02
4 Granted on 29th July 2016-ESOP 2016 23,600 29.07.2016 29.07.2017 1.00 730.61
Profit Before Tax 1,469.76 1,341.62
23,600 29.07.2016 29.07.2018 1.00 730.61
Tax Expense 347.72 413.23
5 Granted on 9th November 2016-ESOS 2012 1,500 09.11.2016 09.11.2017 1.00 661.86
Profit for the year 1,122.04 928.39
Other Comprehensive Income 3.54 2.77 1,500 09.11.2016 09.11.2018 1.00 661.86
Total Comprehensive Income 1,125.58 931.16 6 Granted on 8 November 2017-ESOP 2016
th
28,750 08.11.2017 08.11.2018 1.00 734.15
Non-Controlling Interest 5.75 3.43 28,750 08.11.2017 08.11.2019 1.00 734.15
Total Comprehensive Income attributable 1,119.83 927.73
to shareholders 7 Granted on 11th April 2018-ESOP 2016 4,150 11.04.2018 11.04.2019 1.00 976.94
The above includes: 4,150 11.04.2018 11.04.2020 1.00 976.94
Depreciation, Amortisation and Impairment 84.02 33.26 3.86 121.14 72.45 24.21 2.82 99.48
8 Granted on 30th October 2018-ESOP 2016 1,33,200 30.10.2018 30.10.2019 1.00 931.19
(allocable)
Depreciation, Amortisation and Impairment 48.78 33.26 1,33,200 30.10.2018 30.10.2020 1.00 931.19
(unallocable)
1,500 30.10.2018 30.10.2019 1.00 924.50
Capital Expenditure (including Capital 265.95 115.78 6.14 387.87 158.19 52.35 11.49 222.03
Work-In-Progress) (allocable) 1,500 30.10.2018 30.10.2020 1.00 924.50
Capital Expenditure (unallocable) 31.88 39.92 2,000 30.10.2018 30.10.2021 1.00 924.50
Capital Expenditure 419.75 261.95
9 Granted on 23rd January 2019-ESOP 2016 3,000 23.01.2019 23.01.2022 1.00 1,112.48
India 388.08 239.75
3,000 23.01.2019 23.01.2023 1.00 1,112.48
There is no transactions with single external customer which amounts to 10% or more of the Company’s revenue 4,000 23.01.2019 23.01.2024 1.00 1,112.48
Segment Assets & Liabilities As at 31 March 2020

st
As at 31 March 2019
st 1,500 23.01.2019 29.01.2021 1.00 1,127.85
Consumer Business Others Total Consumer Business Others Total 1,500 23.01.2019 29.01.2022 1.00 1,127.85
& Bazaar to & Bazaar to
1,500 23.01.2019 01.02.2021 1.00 1,127.85
Business Business
Segment Assets 3,070.32 1,382.59 76.36 4,529.27 2,608.25 1,173.22 79.24 3,860.71 1,500 23.01.2019 01.02.2022 1.00 1,127.85
Unallocable Assets 2,006.43 2,053.80 10 Granted on 13th May 2019-ESOP 2016 2,500 13.05.2019 13.05.2020 1.00 1,124.69
Total Assets 6,535.70 5,914.51 11 Granted on 29th January 2020-ESOP 2016 4,000 29.01.2020 31.01.2021 1.00 1,449.90
India 5,871.94 5,409.18
500 29.01.2020 31.01.2021 1.00 1,444.56
500 29.01.2020 31.01.2021 1.00 1,444.56
Segment Liabilities 962.11 696.40 4.77 1,663.28 746.08 573.92 10.99 1,330.99
Unallocable Liabilities 201.16 228.28 2,500 29.01.2020 18.11.2022 1.00 1,433.92
Total Liabilities 1,864.44 1,559.27 2,500 29.01.2020 18.11.2023 1.00 1,433.92
226
Capital Employed 4,671.26 4,355.24

Inputs into the model Granted Granted on 29th January
b) Fair value of share options granted
on 13th May 2020-ESOP 2016
The fair value of the stock options has been estimated using Black-Scholes model which takes into account as of grant 2019-ESOP
date the exercise price and expected life of the option, the current market price of underlying stock and its expected 2016
volatility, expected dividends on stock and the risk free interest rate for the expected term of the option. Share price (on the date previous to grant date) 1,154.45 1,461.60 1,461.60 1,461.60
Inputs into the model Granted on Granted on Granted on Granted on Granted on Granted on Exercise price 1.00 1.00 1.00 1.00
27th July 29th January 29th July 29th July 9th Novem- 8th Novem-
2015-ESOS 2016-ESOS 2016-ESOS 2016-ESOP ber 2016- ber 2017- Date of vesting (1) 13.05.2020 31.01.2021 18.11.2022 31.01.2021
2012 2012 2012 2016 ESOS 2012 ESOP 2016 Dividend yield (%) 0.84 0.74 0.74 0.74
Share price 544.95 556.80 751.60 751.60 691.40 758.55
Option life (no. of years) 2.50 4.01 5.80 4.01
(on the date previous to grant date)
Exercise price 1.00 1.00 1.00 1.00 1.00 1.00 Risk free interest rate (%) 7.03 6.15 6.39 6.15
Date of vesting (1) 10.04.2017 29.01.2017 29.07.2017 29.07.2017 09.11.2017 08.11.2018 Expected volatility (%) 23.06 23.69 24.49 23.69
Dividend yield (%) 0.91 0.93 0.79 0.74 0.89 0.85 Date of vesting (2) - - 18.11.2023 31.01.2022
Option life (no. of years) 3.50 3.50 3.50 2.50 3.50 2.50 Dividend yield (%) - - 0.74 0.74
Risk free interest rate (%) 8.07 7.80 7.39 7.28 6.73 6.69 Option life (no. of years) - - 6.80 5.01
Expected volatility (%) 52.17 54.46 21.51 17.70 20.94 22.12 Risk free interest rate (%) - - 6.43 6.39
Date of vesting (2) 10.04.2018 29.01.2018 29.07.2018 29.07.2018 09.11.2018 08.11.2019 Expected volatility (%) - - 24.56 23.76
Dividend yield (%) 0.97 1.21 0.85 0.79 0.96 0.91

c) Movements in Share Options during the year
Option life (no. of years) 4.50 4.50 4.50 3.50 4.50 3.50
Particulars During the year ended During the year ended
Expected volatility (%) 52.17 54.46 24.25 21.51 23.94 24.01 Options Weighted Options Weighted
Date of vesting (3) - 29.01.2019 - - - - (No.s) average (No.s) average
exercise exercise
Dividend yield (%) - 1.27 - - - - price per price per
option option
Option life (no. of years) - 5.50 - - - -
Option outstanding at the beginning of the year
Risk free interest rate (%) - 7.80 - - - -
- ESOS 2012 - 1 1,19,400 1
Expected volatility (%) - 54.46 - - - -
- ESOP 2016 3,15,750 1 79,000 1
Granted during the year
Inputs into the model Granted on Granted on Granted on 23rd January
11th April 30th October 2019-ESOP 2016 - ESOP 2016 12,500 1 2,95,700 1
2018-ESOP 2018-ESOP
2016 2016 Vested during the year - ESOS 2012 - 1 1,10,500 1
Share price (on the date previous to grant date) 1,000.15 961.55 1,152.80 1,152.80 1,152.80 Vested during the year - ESOP 2016 1,55,850 1 47,200 1
Exercise price 1.00 1.00 1.00 1.00 1.00 Exercised during the year - ESOS 2012 - 1 1,19,400 1
Date of vesting (1) 11.04.2019 30.10.2019 23.01.2022 29.01.2021 01.02.2021 Exercised during the year - ESOP 2016 1,45,500 1 48,550 1
Dividend yield (%) 0.62 2.54 0.84 0.84 0.84 Lapsed during the year*
Option life (no. of years) 2.50 2.50 6.00 5.02 5.02 - ESOP 2016 (granted on 29th July 2016) - 1 1,000 1
Risk free interest rate (%) 7.09 8.01 7.56 7.49 7.49 - ESOP 2016 (granted on 8 November 2017)
th
2,400 1 3,500 1
Expected volatility (%) 21.65 23.20 24.34 23.87 23.86 - ESOP 2016 (granted on 11 April 2018)
th
- 1 5,000 1
Date of vesting (2) 11.04.2020 30.10.2020 23.01.2023 29.01.2022 01.02.2022 - ESOP 2016 (granted on 30th October 2018) 9,500 1 900 1
Dividend yield (%) 0.66 3.62 0.84 0.84 0.84 Options outstanding at the end of the year
Option life (no. of years) 3.50 3.50 7.00 6.02 6.03 - ESOP 2016 1,70,850 1 3,15,750 1
Risk free interest rate (%) 7.28 8.02 7.58 7.56 7.56 Options available for grant
Expected volatility (%) 23.59 23.24 24.37 24.32 24.30 - ESOS 2012 34,200 1 34,200 1
Date of vesting (3) - 30.10.2021 23.01.2024 - - - ESOP 2016 41,13,500 1 41,14,100 1
Dividend yield (%) - 4.82 0.84 - - The weighted average share price at the date of exercise for 1,331.62 1,239.18
stock options exercised during the year
Option life (no. of years) - 4.50 8.00 - -
Range of exercise price for options outstanding at the end of the year 1 1
Risk free interest rate (%) - 8.15 7.65 - -
* Lapsed due to termination of employment with the Group.
Expected volatility (%) - 24.34 24.40 - -
The Company has allotted 3,300 equity shares on 10th June 2020 of face value of 1/- each under Employee Stock Option
228
Plan - 2016 to the employees of the Company and its subsidiaries to whom the options were granted.

50 Financial Instruments (E) Foreign currency risk management
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of
(A) Capital Management
the reporting period are as follows.
The Group manages its capital to ensure that the Group will be able to continue as going concern while maximising the return
to stakeholders through the optimum utilisation of the equity balance. The capital structure of the Group consists of equity
and borrowings of the Group. Foreign Currency Exposure Foreign Currency Exposure
(in FC) ( in crores)
(B) Categories of Financial Instruments 31st March 31st March 31st March 31st March
( in crores)
2020 2019 2020 2019
As at As at
Amounts recoverable/ (advance) in foreign currency on account of the following:
2020 2019 EUR 7,99,474.10 14,88,215.92 6.65 11.56
Financial Assets USD 1,81,84,244.20 1,52,41,632.25 137.14 105.44
Measured at fair value through profit or loss (FVTPL) AUD 38,745.00 - 0.18 -
Investments in Mutual funds, Preference Shares, Debentures and Bonds 1,152.88 1,515.92 SGD - 22,268.00 - 0.11
Derivative assets towards foreign exchange forward contracts 1.81 0.03 Amounts (payable)/ advance in foreign currency on account of the following:
Investments in Promissory Notes 3.77 3.46 AED 2,36,491.04 88,540.00 0.49 0.17
Measured at amortised cost AUD 1,820.00 40,820.00 0.01 0.20
BDT 50,000.00 50,000.00 0.00 0.00

Investments in Deposits & Promissory Notes 4.24 3.89
CHF (5,212.31) 27,261.36 (0.04) 0.19
Trade Receivables 1,088.50 1,056.01
EUR 17,44,843.41 35,56,087.70 14.51 27.62
Cash and Cash Equivalents 692.23 128.12
GBP (1,65,553.39) (1,98,406.00) (1.54) (1.79)
Other Bank balances 11.02 62.31
JPY (75,78,800.00) (60,58,500.00) (0.53) (0.38)
Loans 21.47 15.18
SGD 1,628.00 (39,550.00) 0.01 (0.20)
Other Financial Assets 144.22 113.32 USD (1,04,46,059.69) (1,02,73,326.43) (78.80) (71.07)
Total Financial Assets 3,120.14 2,898.24 THB 5,36,113.88 - 0.12 -
Financial Liabilities ZAR 64,255.58 83,679.60 0.03 0.04
Measured at fair value through profit or loss (FVTPL)

(i) Foreign currency sensitivity analysis
Derivative liabilities towards foreign exchange forward contracts 0.42 1.27 The Group is mainly exposed to the USD, EUR and JPY. The following table demonstrates the sensitivity to a 2% increase or
decrease in the USD, EUR and JPY against INR with all other variables held constant. The sensitivity analysis is prepared on
Measured at amortised cost (including trade payables)
the net unhedged exposure of the Group as at the reporting date. 2% represents management assessment of reasonably
possible changes in foreign exchange rates.
Borrowings 176.22 112.75
( in crores)
Trade Payables 621.01 580.64
USD impact
Lease Liabilities 111.47 -
For the For the
Gross obligation towards acquisition 81.23 76.17 year ended year ended
Other Financial Liabilities 587.25 504.07 2020 2019
Total Financial Liabilities 1,577.60 1,274.90 Impact on profit or loss for the year (refer Note a) 1.17 0.69
(C) Financial risk management objectives ( in crores)

The Group’s Treasury functions provide services to the business, co-ordinates access to domestic and international financial EUR impact
markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which
analyse exposures by degree and magnitude of risks. These risks include market risk, credit risk and liquidity risk. The Group For the For the
undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. year ended year ended
Exchange rate exposures are managed within approved policy parameters utilising foreign exchange forward contracts.
2020 2019
Compliance with policies and exposure limits is a part of Internal Financial Controls. The Group does not enter into or trade
in financial instruments, including derivative financial instruments, for speculative purposes. Impact on profit or loss for the year (refer Note b) 0.42 0.78
(D) Market risk

The Group’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates (see Note E
below). The Group enters into foreign exchange forward contracts to manage its exposure to foreign currency risk of
230 net imports.

( in crores)
JPY impact (F) Credit risk management
For the For the Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
year ended year ended Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial
31st March 31st March instruments, other balances with banks, loans and other receivables
2020 2019 The Group has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Group’s
exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is
Impact on profit or loss for the year (refer Note c) (0.01) (0.01)
reasonably spread amongst the counterparties.
(a) This is mainly attributable to the exposure of outstanding USD receivables and payables at the end of the reporting Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited
period. and there is no collateral held against these because the counterparties are banks and recognised financial institutions with
high credit ratings assigned by the international credit rating agencies.
(b) This is mainly attributable to the exposure of outstanding EUR receivables and payables at the end of the reporting
period. (G) Liquidity risk management
(c) This is mainly attributable to the exposure of outstanding JPY payables at the end of the reporting period. Liquidity risk is the risk that the Group will encounter difficulty in raising funds to meet commitments associated with
financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the to sell a financial asset quickly at close to its fair value.
exposure at the end of the reporting period does not reflect the exposure during the year. The Group has an established liquidity risk management framework for managing its short term, medium term and long term
(ii) Foreign exchange forward contracts funding and liquidity management requirements. The Group’s exposure to liquidity risk arises primarily from mismatches of
the maturities of financial assets and liabilities. The Group manages the liquidity risk by maintaining adequate funds in cash
It is the policy of the Group to enter into foreign exchange forward contracts to cover foreign currency payments (net and cash equivalents. The Group also has adequate credit facilities agreed with banks to ensure that there is sufficient cash
of receipts) in USD, EUR, GBP and AUD. The Group enters in to contracts with terms upto 90 days. to meet all its normal operating commitments in a timely and cost-effective manner.
The Group’s philosophy does not permit any speculative calls on the currency. It is driven by conservatism which guides
(i) Liquidity risk tables
that we follow conventional wisdom by use of Forward contracts in respect of Trade transactions.
The following tables detail the Group's remaining contractual maturity for its derivative and non-derivative financial liabilities
Regulatory Requirements: The Group will alter its hedge strategy in relation to the prevailing regulatory framework and
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities
guidelines that may be issued by RBI, FEDAI or ISDA or other regulatory bodies from time to time.
based on the earliest date on which the Group can be required to pay. The tables include both interest and principal cash
Mode of taking Cover: Based on the outstanding details of import payable and exports receivable (in weekly baskets) flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the
the net trade import exposure is arrived at (i.e. Imports – Exports = Net trade exposures). end of the reporting period.
The Net trade import exposure arrived at is netted off with the outstanding forward cover as on date and with the ( in crores)
surplus foreign currency balance available in EEFC A/Cs.
Less than 1 1-5 years More than 5 Total Carrying Amount
Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward year years
cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are by actual As at 31st March 2020
delivery of the hedged currency for settling the underline hedged trade transaction.
Non-interest bearing
The following table details the foreign exchange forward contracts outstanding at the end of the reporting period - Trade Payables 621.01 - - 621.01 621.01
Outstanding contracts Average exchange rates ( ) Foreign Currency (Amount) - Other Financial Liabilities 456.06 7.26 - 463.32 463.32
31st March 31st March 31st March 31st March 1,077.07 7.26 - 1,084.33 1,084.33
2020 2019 2020 2019 - Lease Liabilities (undiscounted) 35.13 66.89 48.93 150.95 111.47
USD - Buy 72.27 67.18 62,48,647.15 1,11,33,891.64 Fixed interest rate instruments
GBP - Buy 91.75 91.09 - 2,77,000.00 - Trade/ Security Deposit received 123.93 - - 123.93 123.93
EUR - Sell 80.40 79.00 - 5,04,189.99 Variable interest rate instruments

- Borrowings 143.99 25.13 - 169.12 169.12
EUR - Buy 80.43 79.02 77,48,100.00 2,59,000.00
- Current Maturity of Term Loan 7.10 - - 7.10 7.10
AUD - Buy 47.80 51.45 - 28,000.00
Derivative liabilities towards foreign 0.42 - - 0.42 0.42
exchange forward contracts
Outstanding contracts Nominal Amounts Fair value assets/ (liabilities)
( in crores) ( in crores) Gross obligation towards acquisition - 81.23 - 81.23 81.23
31 March
st
31 March
st
31 March
st
31 March
st As at 31st March 2019
2020 2019 2020 2019 Non-interest bearing
USD - Buy 45.58 78.63 1.77 (1.06) - Trade Payables 580.64 - - 580.64 580.64
GBP - Buy - 2.61 - (0.10) - Other Financial Liabilities 384.30 9.81 - 394.11 394.11
EUR - Sell* - 1.44 - (0.00) 964.94 9.81 - 974.75 974.75

EUR - Buy 64.82 4.61 (0.44) (0.07) Fixed interest rate instruments
AUD - Buy - 0.14 - (0.01) - Trade/ Security Deposit received 109.96 - - 109.96 109.96
TOTAL 1.33 (1.24) Variable interest rate instruments

- Borrowings 102.54 8.51 - 111.05 111.05
*Fair Value Liability of EUR Sell is 25,849 as at 31 March 2019.
st
The line-items in the balance sheet that include the above hedging instruments are “Other financial assets” of 1.81 crores - Current Maturity of Term Loan 1.69 - - 1.69 1.69
( 0.03 crores as at 31st March 2019) and “Other financial liabilities” 0.42 crores ( 1.27 crores as at 31st March 2019) Derivative liabilities towards foreign 1.27 - 1.27 1.27
(refer Note 14 and 28 respectively). exchange forward contracts
At 31st March 2020, the aggregate amount of gain under foreign exchange forward contracts recognised in profit or loss is Gross obligation towards acquisition - 76.17 - 76.17 76.17
1.33 crores (loss of 1.24 crores as at 31st March 2019).
232

(H) Fair value measurements 51 Employee Benefits
This note provides information about how the Group determines fair values of various financial assets and financial liabilities. The Group has classified various employee benefits as under:
(i) Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis (A) Defined Contribution Plans
Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting (a) Provident Fund
period. The following table gives information about how the fair values of these financial assets and financial liabilities are (b) Superannuation Fund
determined (in particular, the valuation technique(s) and inputs used).
(c) State Defined Contribution Plans
Financial Assets/ Financial Liabilities Fair value Fair value Valuation - Employers' Contribution to Employees' State Insurance
hierarchy Technique(s)
As at As at - Employers' Contribution to Employees' Pension Scheme 1995
and key input(s)
31st March 31st March - Labour Welfare Fund
2020 2019
(d) National Pension Scheme
1 Investment in Mutual/Alternate Various listed Various listed Level 1 Quoted bid
funds - funds - prices in active The Provident Fund and the State Defined Contribution Plans are operated by the Regional Provident Fund
Investment Funds, Preference Commissioner, the Superannuation Fund is administered by the LIC of India and National Pension Fund is administered
aggregate fair aggregate fair market
Shares, Debentures and Bonds by Pension Fund Regulatory and Development Authority (PFRDA), as applicable, for all eligible employees. Under the
value of value of
1,034.49 1,515.92 schemes, the Group is required to contribute a specified percentage of payroll cost to the retirement benefit schemes
crores crores to fund the benefits. These funds are recognised by the Income Tax Authorities.
2 Derivative assets & liabilities Assets - 1.81 Assets - 0.03 Level 2 Mark to market The Group has recognised the following amounts in the Statement of Profit and Loss:
towards foreign currency forward crores; and crores; and values acquired ( in crores)
liabilities - liabilities - from banks, with For the For the
contracts
0.42 crores 1.27 crores whom the Group year ended year ended
contracts. 31st March 31st March
3 Gross obligation towards Liabilities - Liabilities - Level 2 Fair values 2020 2019
acquisition 81.23 crores 76.17 crores of options using (i) Contribution to Provident Fund 19.17 20.43
black scholes
valuation model (ii) Contribution to Employees' Superannuation Fund 0.87 0.84
based on (iii) Contribution to Employees' State Insurance Scheme & Labour Welfare Fund 0.27 0.45
Independent
valuer’s report (iv) Contribution to Employees' Pension Scheme 1995 10.06 7.59
4 Investment in Promissory Notes Aggregate fair value - Level 3 Fair value (v) Contribution to National Pension Scheme 2.80 1.88
of 122.48 crores is derived
vi) Other Funds (International) 9.41 4.88
considering
recent financial TOTAL 42.58 36.07
rounds of
(B) Defined Benefit Plans
investment
Gratuity
5 Investment in Promissory Notes Aggregate fair Aggregate fair Level 3 Fair value
value of 3.77 value of is derived (C) Other Long-Term Benefits
crores 3.46 crores considering (a) Compensated Absences
recent financial
rounds of (b) Anniversary Awards
investment (c) Premature Death Pension Scheme
(d) Total Disability Pension Scheme
(ii) Financial instruments measured at amortised cost
Valuations in respect of above have been carried out by independent actuary, as at the balance sheet date, based on the
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are
following assumptions:
a reasonable approximation of their fair values since the Group does not anticipate that the carrying amounts would be
Valuations as at
significantly different from the values that would eventually be received or settled.
(i) Discount Rate (per annum) 6.25% - 9.46% 7.15% - 7.7%
(ii) Rate of increase in Compensation levels (per annum) 1 2 yrs - 4 - 8.7%, 1 2 yrs - 6.5 - 15%,
st st
thereafter 5 - 10% thereafter 6.5 - 10%

(iii) Expected Rate of Return on Assets 6.25% - 9.46% 7.4% - 7.7%
(iv) Attrition Rate upto upto

5 yrs - 2% - 25%, 5 yrs - 2% - 15%,
5 - 10 yrs -2% to 25%, 5 - 10 yrs - 2 to 15%,
Above Above
10 yrs - 2% to 25% 10 yrs - 2 to 15%
(v) Retirement Age 60 years 58- 60 years
(vi) The expected rate of return on plan assets is determined after considering several applicable factors such as the
composition of the plan assets, investment strategy, market scenario, etc. In order to protect the capital and optimise
returns within acceptable risk parameters, the plan assets are well diversified.
(vii) The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet
date for the estimated term of the obligations.
(viii) The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments
234 and other relevant factors.

( in crores)
Note on other risks: 31st March 2020 31st March 2019

Gratuity Gratuity Gratuity Gratuity
1 Investment Risk - The funds are invested by LIC and they provide returns basis the prevalent bond yields, LIC on an
Funded Unfunded Funded Unfunded
annual basis requests for contributions to the fund, while the contribution requested may not be on the same interest
rate as the bond yields provided, basis the past experience it is low risk. (iv) Expenses recognised in the Statement of Profit and Loss
2 Interest Risk – LIC does not provide market value of assets, rather maintains a running statement with interest rates 1 Current Service Cost 7.65 0.54 5.93 0.39
declared annually – The fall in interest rate is not therefore offset by increase in value of Bonds, hence may pose a risk. 2 Past Service Cost - - - -
3 Longevity Risk – Since the gratuity payment happens at the retirement age of 58-60, longevity impact is very low at 3 Interest cost on benefit obligation (net) (0.17) 0.23 (0.09) 0.16
this age, hence this is a non-risk.
4 Total Expenses recognised in the Statement of 7.48 0.77 5.84 0.55
4 Salary Risk - The liability is calculated taking into account the salary increases, basis past experience of the Group’s Profit and Loss
actual salary increases with the assumptions used, they are in line, hence this risk is low risk.
( in crores)
(v) Remeasurement Effects recognised in Other Comprehensive Income for the year
31 March 2020
st
31 March 2019
st
1 Actuarial (Gains)/ Loss
Gratuity Gratuity Gratuity Gratuity Actuarial (Gains)/ Loss arising from changes in 0.16 (0.04) 0.45 -
Funded Unfunded Funded Unfunded demographic assumption
(i) Changes in Present value of Obligation Actuarial (Gains)/ Loss arising from changes in 0.01 0.18 3.61 0.35
financial assumption
1 Present value of defined benefit obligation at the 78.40 3.36 65.17 2.38
beginning of the year Actuarial (Gains)/ Loss arising from changes in 14.07 0.21 1.51 0.34
experience adjustment
2 Additions during the year - 0.26 - -
Return on plan asset 0.04 - 0.03 -
3 Acquistion through Business Combination - - 0.01 -
2 Recognised in Other Comprehensive Income 14.28 0.35 5.60 0.69
4 Current Service Cost 7.65 0.54 5.93 0.39
5 Interest Cost 5.27 0.23 4.90 0.16 (vi) Actual return on plan assets 5.26 - 4.92 -
6 Actuarial (Gains)/ Loss
Actuarial (gains)/ losses arising from changes in 0.16 - 0.45 - (vii) Sensitivity Analysis
demographic assumption
Defined Benefit Obligation
Actuarial (gains)/ losses arising from changes in 0.01 0.18 3.61 0.35
Discount Rate
financial assumption
a Discount Rate - 100 basis points 98.66 4.86 83.88 3.61
Actuarial (gains)/ losses arising from changes in 14.07 0.21 1.51 0.34
experience adjustment b Discount Rate + 100 basis points 87.06 4.30 73.61 3.19
7 Past Service cost - - - - Salary Increase Rate
8 Benefits Paid (13.34) (0.21) (3.25) (0.26) a Rate - 100 basis points 86.98 4.30 73.56 3.19
9 Foreign Currency Translation 0.25 - 0.07 - b Rate + 100 basis points 98.64 4.85 83.85 3.60
Note on Sensitivity Analysis
10 Present value of defined benefit obligation at the end 92.47 4.57 78.40 3.36
of the year 1 Sensitivity analysis for each significant actuarial assumptions of the Company which are discount rate and salary
assumptions as of the end of the reporting period, showing how the defined benefit obligation would have been
affected by changes is called out in the table above.
(ii) Changes in Fair value of Plan Assets 2 The method used to calculate the liability in these scenarios is by keeping all the other parameters and the data same
as in the base liability calculation except for the parameters to be stressed.
1 Fair value of plan assets at the beginning of the year 73.27 - 66.17 -
3 There is no change in the method from the previous period and the points/ percentage by which the assumptions are
2 Expected Return on Plan Assets 5.43 - 4.99 - stressed are same to that in the previous year.
3 Actuarial Gains/ (Loss) (0.01) - (0.03) - (viii) Expected Future Cashflows

4 Employer's Contributions 16.94 - 5.31 - Year 1 14.61 0.73 14.56 0.46
5 Benefits Paid (5.53) - (3.25) - Year 2 8.52 0.57 6.80 0.50
6 Foreign Currency Translation 0.23 - 0.08 - Year 3 9.07 0.61 7.65 0.38
Year 4 8.11 0.49 8.21 0.43
7 Fair value of plan assets at the end of the year 90.33 - 73.27 -
Year 5 7.24 0.45 7.33 0.34
Year 6 to 10 37.76 1.79 33.44 1.36
(iii) Net Benefit (Asset)/ Liability
1 Defined benefit obligation 92.47 4.57 78.40 3.36

(ix) Average Expected Future Working Life (yrs) 14.76 6.06 13.65 8.49
2 Fair value of plan assets 90.33 - 73.27 -
3 Net Benefit (Asset)/ Liability 2.14 4.57 5.13 3.36

236

( in crores)
52 Subsidiaries 53 Taxes
Details of the Group’s subsidiaries at the end of the reporting period are as follows: 1. Deferred Tax
Name of Subsidiary Place of Proportion of ownership As at As at
incorporation and interest and voting rights 31st March 31st March
operation held by the Group 2020 2019
As at As at
31st March 2020 31st March 2019 Deferred Tax Assets (net) (13.00) (10.72)
a. Fevicol Company Ltd (Fevicol) India 100.00% 100.00% Deferred Tax Liabilities (net) 82.29 120.14
b. Bhimad Commercial Company Pvt Ltd (Bhimad) India 100.00% 100.00%
TOTAL 69.29 109.42
c. Madhumala Ventures Pvt Ltd (Formerly known as Madhumala India 100.00% 100.00%
Traders Pvt Ltd) (Madhumala)
d. Pagel Concrete Technologies Pvt Ltd (PCTPL) India 80.00% 80.00%
a 2019-20
e. Nitin Enterprises (Nitin) India 100.00% 100.00%
f. Building Envelope Systems India Ltd (BESI) India 60.00% 60.00% Deferred tax (assets)/ liabilities in relation to:
g. Nina Percept Pvt Ltd [refer Note 56(c)] India 71.53% 71.53%
Opening Recognised Recognised Foreign Closing
h. Hybrid Coatings (Hybrid) India 60.00% 60.00% Balance in Profit or in Other Currency Balance
i. Pidilite International Pte Ltd (PIPL) Singapore 100.00% 100.00% Loss Comprehen- Translation
sive Income
j. Pidilite Middle East Ltd (PMEL) United Arab Emirates 100.00% 100.00%
k. Pulvitec do Brasil Industria e Comercio de Colas e Adesivos Ltda Brazil 100.00% 100.00% Property, Plant and Equipment 67.78 (29.26) - 0.40 38.92
(Pulvitec)
Intangible Assets 83.38 1.20 - 0.07 84.65
l. Pidilite USA Inc (PUSA) USA 100.00% 100.00%
m. Pidilite MEA Chemicals LLC (Jupiter)* United Arab Emirates 49.00% 49.00% FVTPL financial assets 17.12 (12.84) - - 4.28
n. PT Pidilite Indonesia (PTPI) Indonesia 100.00% 100.00% Other Provisions (5.80) (1.45) - (0.33) (7.58)
o. Pidilite Speciality Chemicals Bangladesh Pvt Ltd (PSCB) Bangladesh 100.00% 100.00%
Allowance for Doubtful Debts (18.74) 2.06 - (0.19) (16.87)
p. Pidilite Innovation Centre Pte Ltd (PICPL) Singapore 100.00% 100.00%
q. Pidilite Industries Egypt SAE (PIE) Egypt 100.00% 100.00% Provision for Employee Benefits (16.72) 6.23 (3.58) (0.01) (14.08)
r. Pidilite Bamco Ltd (Bamco) Thailand 100.00% 100.00% Share issue and buy-back costs (0.40) 1.88 - - 1.48
s. Pidilite Chemical PLC (PCPLC) Ethiopia 100.00% 100.00%
Tax Losses (17.20) (4.09) - (0.22) (21.51)
t. PIL Trading (Egypt) Company (PTC) Egypt 100.00% 100.00%
u. Pidilite Industries Trading (Shanghai) Co Ltd (Pidilite Shanghai) China 100.00% 100.00% Total 109.42 (36.27) (3.58) (0.28) 69.29
v. Bamco Supply and Services Ltd (BSSL)* Thailand 49.00% 49.00%
w. ICA Pidilite Pvt Ltd (ICA) * India 50.00% 50.00%
x. Cipy Polyurethanes Pvt Ltd India 70.00% 70.00% b 2018-19
y. Pidilite Lanka (Pvt) Ltd (PLPL) Sri Lanka 76.00% 76.00% Deferred tax (assets)/ liabilities in relation to:
z. Nebula East Africa Pvt Ltd (Nebula) Kenya 100.00% 100.00%
Opening Recognised Recognised Foreign Closing
aa. Nina Lanka Construction Technologies (Pvt) Ltd Sri Lanka 72.70% 72.70% Balance in Profit or in Other Currency Balance
(Nina Lanka)** Loss Comprehen- Translation
ab. Pidilite Ventures LLC (w.e.f. 8th August 2018) USA 100.00% 100.00% sive Income
ac. Pidilite East Africa Limited (w.e.f. 12th February 2019) Kenya 55.00% 55.00% Property, Plant and Equipment 62.06 5.57 - 0.15 67.78
ad. Pidilite Grupo Puma Pvt Ltd (PGPPL) * India 50.00% -
Intangible Assets 73.69 9.78 - (0.09) 83.38
(w.e.f. 16th September, 2019)
ae. Pidilite C-Techos Pvt Ltd (w.e.f. 18th September 2019) India 60.00% - FVTPL financial assets 16.78 0.34 - - 17.12
af. Pidilite Litokol Pvt Ltd (w.e.f. 7 October 2019)
th
India 60.00% -
[refer Note 56(e)] Other Provisions (6.19) 0.70 - (0.31) (5.80)
ag. Pidilite Grupo Puma Manufacturing Ltd (PGPML)* India 50.00% - Allowance for Doubtful Debts (16.16) (2.50) - (0.08) (18.74)
(w.e.f. 13th January 2020) [refer Note 56(f)]
ah. Nina Percept (Bangladesh) Pvt Ltd*** Bangladesh 71.81% - Provision for Employee Benefits (14.80) (0.09) (1.83) 0.01 (16.72)
(w.e.f. 29th January 2020) [refer Note 56(d)]
Share issue and buy-back costs (3.17) 2.77 - - (0.40)
ai. Pidilite C-Techos Walling Ltd India 60.00% -
(w.e.f. 5th March 2020) [refer Note 56(h)] Tax Losses (7.39) (9.92) - 0.11 (17.20)
* Pidilite MEA Chemicals LLC, BSSL. ICA and PGPML are subsidiaries of the Group even though the Group has 49%, 49%, 50%
and 50% ownership interest and voting rights in the subsidiaries respectively. However, based on the relevant facts and circum- Total 104.80 6.65 (1.83) (0.21) 109.42
stances, control and management of these entities lie with the Group. The Group has the power to direct the relevant activities of
these entities and therefore controls these entities.
** Nina Lanka Construction Technologies (Pvt) Ltd (Nina Lanka) is a 100% subsidiary of Nina Percept Private Limited and Pidilite
Lanka (Pvt) Ltd.
238 *** Nina Percept (Bangladesh) Pvt Ltd (Nina Bangladesh) is a 100% subsidiary of Nina Percept Private Limited and Pidilite Speciality
Chemicals Bangladesh Pvt Ltd (PSCB)

( in crores)
2. Income Taxes relating to Continuing Operations 54 Lease

a Income Tax recognised in Profit or Loss On transition, the adoption of the new standard resulted in recognition of ‘Right of Use’ asset of 152.46 crores and a
corresponding lease liability of 109.73 crores and balance on account of transfer from asset. The effect of this adoption
Particulars As at As at is insignificant on the profit before tax, profit for the period and earnings per share. Ind AS 116 will result in an increase
31st March 31st March in cash inflows from operating activities and an increase in cash outflows from financing activities on account of lease
2020 2019 payments. Refer Note 50 for contractual maturities of lease liabilities.
Current Tax Reconciliation of operating lease commitments as at 31st March 2019 with the lease liabilities recognised in the
Balance Sheet as at 1st April 2019:
In respect of the current year 384.00 459.45
( in crores)
In respect of prior years (0.01) (52.87) Particulars
TOTAL 383.99 406.58 Operating lease commitments disclosed as at 31st March 2019 48.95
Discounted using incremental borrowing rate of at 1st April 2019 75.71
Deferred Tax
Add : Finance lease liabilities recognised as at 31 March 2019
st
3.33
In respect of the current year (36.27) 6.65
(Less) : Short-term leases not recognised as a liability (17.98)
Total income tax expense recognised in the current year relating to continuing operations 347.72 413.23 (Less) : Low-value leases not recognised as a liability -
Translation Difference (0.28)
b The Income Tax expense for the year can be reconciled to the accounting profit as follows: Lease liability recognised as at 1st April 2019 109.73
Of which are:
As at As at
31st March 31st March Current lease liabilities 21.83
2020 2019 Non-current lease liabilities 87.90
Profit before tax from continuing operations (after exceptional items) 1,466.74 1,338.02
Impact of adoption of Ind AS 116 on the statement of profit and loss:
Income Tax Rate (%) 25.17% 34.94%
Particulars For the year
Income Tax expense 369.15 467.56 ended
31st March
Effect of income that is exempt from taxation (5.03) (5.84) 2020
Interest on lease liabilities (refer Note 38) 8.21
Effect of expenses that are not deductible in determining taxable profit and deductions 22.55 5.98
Depreciation of Right-of-use assets (refer Note 39) 31.31
Effect of concessions (research and development and backward area deductions) (3.46) (16.76)
Deferred tax (credit) (1.08)
Effect of lower rate of tax (48.21) (17.71) Impact on the statement of profit and loss for the period 38.44
Effect of previously unrecognised and unused tax losses and deductible temporary - 0.25 Expenses related to short term lease incurred during the year 20.35
differences now recognised as deferred tax assets
Effect of previously unrecognised and unused tax losses and deductible temporary - - 55 Details of provisions
differences now recognised as deferred tax liabilities
The Group has made provision for various contractual obligations and disputed liabilities based on its assessment of the
Effect of the Company being taxed at lower tax rate (minimum alternate tax) as the (0.17) (0.03) amount it estimates to incur to meet such obligations, details of which are given below:
profits under tax laws are lower than the book profits
( in crores)
Effect of subsidiary companies taxed at a different rate than the holding company 5.83 31.15
Particulars As at Additions Utilisation Foreign As at
Others 7.07 1.50 1st April Currency 31st March
2019 Translation 2020
TOTAL 347.73 466.10 0.30 - (0.15) (0.03) 0.12
Provision for Employee related claims
Adjustments recognised in the current year in relation to the current tax of prior years (0.01) (52.87) (1.78) (0.31) ((1.67)) ((0.12)) (0.30)
Income tax expense recognised in profit or loss (relating to continuing operations) 347.72 413.23 Provision for other contingencies (regulatory tax 0.67 0.14 - (0.14) 0.67
related claims)
(0.74) - - ((0.07)) (0.67)

1.27 4.10 (0.07) (0.54) 4.76
c. Income Tax recognised in Other Comprehensive Income Provision for Warranty Expenses
(0.74) (0.59) ((0.06)) - (1.27)
As at As at Total 2.24 4.24 (0.22) (0.71) 5.55
2020 2019 (3.26) (0.90) ((1.73)) ((0.19)) (2.24)
Tax arising on income and expenses recognised in Other Comprehensive Income: Of the above, the following amounts are expected to be incurred within a year:
Particulars As at As at
Re-measurement of Defined Benefit Obligation 3.58 1.83 31st March 31st March
2020 2019
Total Income Tax recognised in Other Comprehensive Income 3.58 1.83
Provision for Warranty Expenses 4.76 1.27
240

56 Other Information Out of these assets, Company has identified certain plant & machinery amounting to 5.33 crores for its
internal use and remaining plant & machinery amounting to 32.95 crores have been further impaired.
a) During the previous year, Group has invested in convertible promissory note which contains an embedded Hence, an impairment loss aggregating to Rs 55.19 crores is disclosed as an exceptional item in the financial
derivative in the form of an equity conversion option upon qualifying conditions. Group has elected the statements.
option to measure the hybrid instrument at fair value in its entirety with changes in fair value recognised in
Profit and Loss. j) In March 2020, the World Health Organisation declared COVID-19 to be a pandemic. The operation of the
Company were disrupted since mid of March 20. As on date, The parent company has already restarted
b) During the year, Madhumala Ventures Pvt Ltd (Formerly known as Madhumala Traders Pvt Ltd) the operations albeit in a phased manner after obtaining necessary permissions as required. The Company
(Madhumala), a wholly owned subsidiary of the Company: has adopted measures to curb the spread of infection in order to protect the health of its employees and
(i) invested an amount of 49 crores in the Homevista Décor & Furnishings Pvt Ltd (HomeLane) by ensure business continuity with minimal disruption including remote working, maintaining social distancing,
subscription to Compulsory Convertible Cumulative Preference Shares. HomeLane is a fast growing sanitization of work spaces etc.
home interiors company backed by strong tech-stack and presence in 7 cities with 16 experience The Company has evaluated the impact of COVID-19 on the operations of the Company, order booking and
centers in India. revenue, cash flow, assets and liabilities and factored in the impact of it upto the date of approval of these
(ii) invested an amount of 71.47 crores in the Trendsutra PlatformServices Pvt Ltd (Pepperfry) by financial results on the carrying value of its assets and liabilities.
subscription to Compulsory Convertible Non-Cumulative Preference Shares. Pepperfry is an online Even though, it is very difficult to predict the duration of the disruption and severity of its impact, on the
furniture chain in India. basis of evaluation of overall economic environment, outstanding order book, liquidity position, debt free
(iii) invested an amount of 2.00 crores in the Aapkapainter Solutions Pvt Ltd (Aapkapainter). Madhumala status, recoverability of receivables, the Company expects to recover the carrying amount of these assets
has agreed to make an investment of 5.00 crores in Aapkapainter, a company engaged in providing and currently does not anticipate any further impairment of it. In assessing the recoverability, the Company
painting and waterproofing solutions to retail consumer. has considered internal and external information upto the date of approval of these Ind AS financial results
and has concluded that there are no material impact on the operations and the financial position of
c) During the previous year, Percept Waterproofing Services Limited (Percept) (80% Subsidiary of the the Company.
Company) was merged with Nina Waterproofing Systems Pvt Ltd (Nina) (70% Subsidiary of the Company),
pursuant to the Hon’ble National Company Law Tribunal, Mumbai Bench, order dated Given the uncertainties, the impact of COVID-19 maybe different from that estimated as at the date of
11th January 2019, w.e.f. the appointed date i.e. 1st April 2017 and consequently, Percept stands dissolved approval of these consolidated financial results, and the Company will continue to closely monitor the
without winding up. Further, post the said merger, w.e.f 27th March 2019, Nina is known as AEKAM developments
Construction Specialties Private Limited (AEKAM) and w.e.f 15th April 2019, AEKAM is known as Nina Percept
k) During the year, the Company had paid Interim Dividend of 7.00 per equity share of 1 each for the
Private Limited. Accordingly, the Company’s investment in Percept are merged with Nina Percept Private
Limited and the Company holds 71.53% stake in the merged entity.
d) During the year, Nina Percept Private Limited (NPPL), subsidiary of the Company along with Pidilite 57 Events after reporting period
Speciality Chemicals Pvt. Ltd. (PSCB), step-down subsidiary of the Company, has incorporated a subsidiary
in Bangladesh namely ‘Nina Percept (Bangladesh) Pvt. Ltd.’ to carry on the business of roofing and The Company has entered into a definitive agreement with Tenax SPA Italy (Tenax Italy) for acquiring 70% of
waterproofing services. NPPL shall hold 99% of the paid up share capital of Nina Percept (Bangladesh) the share capital of Tenax India Stone Products Pvt Ltd (Tenax India) for cash consideration of approximately
Pvt Ltd and the balance 1% shall be held by PSCB. 80 crores (depending upon the actual cash and working capital at the time of closing), subject to certain
preconditions being met prior to closing of the transaction. Tenax Italy is the leading manufacturer of adhesives,
e) During the year, the Company has incorporated a subsidiary in the name of ‘Pidilite Litokol Private Limited’
coating, surface treatment chemicals and abrasives for the marble, granite and stone industry. Tenax India is
(PLPL). This subsidiary is incorporated to carry on the business of chemicals epoxy grouts, chemical based
a subsidiary of Tenax Italy engaged in the sales and distribution of Tenax Italy products for the retail market
products, etc. In terms of Shareholder’s agreement, the Company shall hold 60% of the paid-up share capital
in India.
and balance capital held by Litokol SPA, Italy.
f) During the year, The Company has incorporated a subsidiary in the name of ‘Pidilite Grupo Puma 58 Approval of financial statements
Manufacturing Limited’ (PGPML) to carry on the business of manufacturing, processing, trading or dealing
in technical mortars, building materials, high quality C2 tile adhesives, other materials used in construction The consolidated financial statements are approved for issue by the Audit Committee and by the Board of
etc. The Company shall hold 50% of the paid-up share capital and balance capital held by Corporacion Directors at their respective meetings held on 17th June 2020.
Empresarial Grupo Puma S.L. (Grupo Puma).
g) The Board of Directors at its meeting held on 29th January 2020 have approved a restructuring proposal
whereby the Company shall, for operational convenience and synergies, acquire the business of wholly
owned entity, M/s Nitin Enterprise (a partnership firm having two partners which are wholly owned
subsidiaries of the Company) on a slump sale basis for a cash consideration of an amount not exceeding
18.50 crores. The Company has applied for and is awaiting for necessary approvals.
h) During the year, the Company has incorporated a Subsidiary Company in the name of “Pidilite C-Techos
Walling Limited” (PCWL) to carry on the business of construction of building works or any other structural
or architectural work of any kind using C-Techos wall technology, manufacturing of ACC panels and other
ancillary products. The Company shall hold 60% of the paid-up share capital and balance capital held by
Chetana Exponential Technologies Pvt Ltd.
i) During current year, the Company decided to sell plant and machinery pertaining to Synthetic Elastomer
project located at Dahej having a carrying value of 60.52 crores as on 1st April 2019 (included in capital
work in progress). Accordingly, reclassified these assets as “Assets held for sale” at fair market value of
38.28 crores and an impairment loss amounting to 22.24 crores was provided in September 2019.
The Company has undertaken its best efforts to find buyers for these assets. In absence of buyer, as at
31st March 2020, these assets were fair valued at estimated realizable scrap value in accordance with Ind AS
113 “FairValue Measurement”, being asset categorized as Level 3, whereby fair value is determined based on
the inputs to the valuation technique.
242

Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial State-
59 ments to Schedule III to the Companies Act, 2013
INFORMATION ON SUBSIDIARY COMPANIES
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) in Form AOC-1
Name of the entity Net assets, i.e., Total As- Share of Profit and Loss Share in Other Comprehen- Share in Total Comprehen- Particulars
Date of
acquisition/
incorporation of
subsidiary
Reporting
period (FY)
Reporting
Currency
Exchange Rates
as at year end
Share Capital
(includes Share
application Money)
Reserves
& Surplus
Total
Assets
Total
Liabilities
Investments
(except in case of
subsidiaries)
Turnover
Profit/ (Loss)
Before Taxation
Provision
For Tax (including
Deferred Tax)
Profit/ (Loss)
After Taxation
Proposed
Dividend
% of shareholding*
sets - Liabilities sive Income sive Income
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated consolidated consolidated consolidated
net assets Profit and Other Other
Loss Comprehensive Comprehensive
Income Income
Pidilite Industries Limited 76.13 3,555.80 96.93 1,087.64 2,566.81 90.89 104.70 1,178.53
Indian Subsidiaries Pidilite International 29.12.2004 31.03.2020 USD 75.37 203.97 1.24 205.35 0.14 - - 0.44 (0.03) 0.47 - 100.00%
Bhimad Commercial Co Pvt Ltd 0.00 Pte Ltd
0.01 (0.00) (0.00) - - (0.00) (0.00)
(Bhimad) Pidilite Middle East Ltd 18.05.2005 31.03.2020 AED 20.54 187.23 (103.01) 84.33 0.10 - - (0.10) - (0.10) - 100.00%
Building Envelope Systems India Ltd 0.07 3.23 (0.81) (9.05) (0.26) (0.01) (0.81) (9.06) Pidilite MEA Chemicals 28.06.2005 31.03.2020 AED 20.54 0.62 154.36) 125.63 279.37 - 109.62 (9.92) - (9.92) - 49.00%
(BESI) (LLC)
Pidilite Speciality 29.12.2005 31.03.2020 Taka 0.89 31.32 46.47 126.42 48.63 - 118.90 14.45 4.85 9.60 - 100.00%
Fevicol Company Ltd (Fevicol) 0.00 0.04 0.00 0.00 (0.36) (0.01) (0.00) (0.01) Chemicals Bangladesh
Hybrid Coatings (Hybrid) 0.15 7.21 (0.84) (9.46) (0.13) (0.00) (0.84) (9.46) Pvt Ltd
Madhumala Ventures Pvt Ltd 2.71 126.53 (0.01) (0.10) - - (0.01) (0.10) Pidilite Bamco Ltd 27.02.2006 31.03.2020 Baht 2.31 8.07 21.20 37.48 8.21 - 49.82 3.29 0.60 2.69 - 100.00%
(Madhumala) PT Pidilite Indonesia 01.03.2006 31.03.2020 IDR 0.00 5.30 (3.62) 1.93 0.24 - - 0.01 - 0.01 - 100.00%
Nina Percept Private Limited 2.89 135.00 3.91 43.84 (10.04) (0.36) 3.86 43.48 Pidilite USA Inc 12.05.2006 31.03.2020 USD 75.37 111.40 (12.11) 142.53 43.24 4.24 113.72 0.63 (1.34) 1.97 - 100.00%
Nitin Enterprises (Nitin) 0.36 17.00 (3.37) (37.78) - - (3.36) (37.78) Pidilite Innovation 20.12.2006 31.03.2020 SGD 52.98 5.27 (0.02) 8.17 2.92 - 3.84 (0.25) 0.26 (0.51) - 100.00%
Center Pte Ltd
Pagel Concrete Technologies Pvt Ltd 0.00 0.07 (0.00) (0.00) - - (0.00) (0.00)
(PCTPL) Pidilite Industries Egypt 18.10.2007 31.03.2020 EGP 4.79 46.68 (17.62) 61.61 32.55 - 31.57 0.89 (0.14) 1.03 - 100.00%
- SAE
Cipy Polyurethanes Pvt Ltd (CIPY) 2.49 116.31 (0.50) (5.60) 4.97 0.18 (0.48) (5.42)
Pulvitec do Brasil 10.05.2005 31.03.2020 BRL 14.52 107.91 (85.66) 51.83 29.59 - 87.06 (3.57) 0.27 (3.84) - 100.00%
ICA Pidilite Pvt Ltd (ICA) 1.97 92.16 (3.86) (43.26) (1.89) (0.07) (3.85) (43.33) Industria e Comercio de
Pidilite C-Techos Walling Ltd 0.00 0.02 (0.00) (0.02) - - (0.00) (0.02) Colas e Adesivos Ltda
Bamco Supply and 22.04.2008 31.03.2020 Baht 2.31 0.23 7.49 8.46 0.74 - 11.78 0.88 0.15 0.73 - 49.00%
Pidilite Grupo Puma Manufacturing Ltd 0.00 0.02 (0.00) (0.02) - - (0.00) (0.02) Services Limited
Pidilite Litokol Pvt Ltd 0.01 0.62 (0.00) (0.03) - - (0.00) (0.03) PIL Trading (Egypt) LLC 27.07.2009 31.03.2020 EGP 4.79 2.61 (5.32) 5.44 8.15 - 5.26 (0.24) (0.01) (0.23) - 100.00%
Pidilite C-Techos Pvt Ltd - - - - - - - - Pidilite Industries 22.11.2010 31.03.2020 RMB 10.63 1.02 (0.07) 0.98 0.03 - 0.84 (0.15) - (0.15) - 100.00%
Pidilite Grupo Puma Pvt Ltd - - - - - - - - Trading (Shanghai)
Co Ltd
Foreign Subsidiaries Pidilite Chemical PLC 10.12.2014 31.03.2020 Birr 2.27 3.57 (2.26) 4.33 3.02 - - (0.98) - (0.98) - 100.00%
Pidilite Bamco Ltd (Bamco) 1.10 51.34 0.08 0.94 36.92 1.31 0.20 2.25 Pidlite Ventures LLC 08.08.2018 31.03.2020 USD 75.37 7.91 0.33 8.25 0.01 3.77 - 0.24 (0.02) 0.26 - 100.00%
Bamco Supply and Services Ltd 0.08 3.87 0.20 2.20 10.08 0.36 0.23 2.56 Nebula East Africa Ltd 09.09.2015 31.03.2020 KES 0.72 0.36 0.26 2.57 1.95 - 3.11 0.16 0.06 0.10 - 100.00%
(BSSL)
Pidilite Lanka (Pvt) Ltd 07.08.2015 31.03.2020 LKR 0.40 35.05 (3.77) 56.75 25.47 - 41.53 (1.18) 0.03 (1.21) - 76.00%
Pidilite MEA Chemicals LLC (Jupiter) 1.00 46.68 4.24 47.55 (618.82) (21.91) 2.28 25.64
Nina Lanka Construction 20.02.2017 31.03.2020 LKR 0.40 0.63 (0.26) 0.63 0.26 - 0.07 (0.31) - (0.31) - 72.70%
Pidilite Chemical PLC (PCPLC) 0.03 1.28 (0.10) (1.11) 5.63 0.20 (0.08) (0.91) Technologies (Pvt)
Limited
Pidilite Industries Egypt SAE (PIE) 0.85 39.67 0.82 9.20 (192.99) (6.83) 0.21 2.37
Pidilite East Africa 12.02.2019 31.03.2020 KES 0.72 4.68 (0.55) 4.32 0.20 - - (0.53) - (0.53) - 55.00%
Pidilite Industries Trading (Shanghai) 0.00 0.20 (0.08) (0.87) (0.10) (0.00) (0.08) (0.87) Limited
Co Ltd (Pidilite Shanghai)
Nina Percept 29.01.2020 31.03.2020 Taka 0.89 0.39 - 0.39 - - - - - - - 71.81%
Pidilite Innovation Centre Pte Ltd 0.11 5.08 (0.53) (6.00) (2.17) (0.08) (0.54) (6.08) (Bangladesh) Pvt Ltd
(PICPL)
Fevicol Company 28.07.1979 31.03.2020 INR - 0.27 1.96 2.23 - 0.04 - - - - - 100.00%
Pidilite International Pte Ltd (PIPL) 0.10 4.59 (0.04) (0.39) (2,075.22) (73.49) (6.56) (73.88) Limited
Pidilite Lanka (Pvt) Ltd (PLPL) 0.56 26.19 0.83 9.35 (7.74) (0.27) 0.81 9.08 Madhumala Venture 01.06.1989 31.03.2020 INR - 0.16 134.88 135.04 - 122.48 - 1.13 - 1.13 - 100.00%
Pvt Ltd
Pidilite Middle East Ltd (PMEL) 0.01 0.57 (0.01) (0.10) (391.52) (13.87) (1.24) (13.97)
Bhimad Commercial 01.06.1989 31.03.2020 INR - 0.01 8.64 8.65 - - - 1.23 - 1.23 - 100.00%
Pidilite Speciality Chemicals 1.79 83.72 3.55 39.78 88.98 3.15 3.81 42.93 Company Pvt Ltd
Bangladesh Pvt Ltd (PSCB)
Pagel Concrete 24.01.2007 31.03.2020 INR - 0.10 (0.43) - 0.33 - - - - - 80.00%
Pidilite USA Inc (PUSA) 2.13 99.36 (0.62) (6.95) (227.80) (8.07) (1.33) (15.02) Technologies Pvt Ltd
PIL Trading (Egypt) Company (PTC) 0.07 3.31 0.10 1.10 (47.36) (1.68) (0.05) (0.58) Building Envelope 07.09.2012 31.03.2020 INR - 8.35 14.37 23.90 1.18 - 9.07 2.31 0.21 2.10 - 60.00%
Systems India Ltd
PT Pidilite Indonesia (PTPI) 0.03 1.62 (0.06) (0.70) 7.89 0.28 (0.04) (0.42)
Nina Percept Pvt Ltd** 30.03.2015 31.03.2020 INR - 1.18 144.19 319.68 174.31 - 267.76 4.00 0.66 3.34 - 71.53%
Pulvitec do Brasil Industria e Commercio 0.48 22.25 (0.34) (3.84) 953.03 33.75 2.66 29.91
ICA Pidilite Pvt Ltd 20.11.2015 31.03.2020 INR - 7.31 236.85 285.67 41.51 4.51 185.24 2.05 0.52 1.53 - 50.00%
de Colas e Adesivos Ltda (Pulvitec)

Nina Lanka Construction Technologies 0.01 0.27 (0.01) (0.15) (2.21) (0.08) (0.02) (0.23) Cipy Polyurethanes Pvt 29.11.1994 31.03.2020 INR - 0.94 93.01 125.41 31.46 - 120.86 15.42 4.24 11.18 - 70.00%
(Pvt) Ltd (Nina Lanka) Ltd
Pidilite C-Techos Pvt Ltd 18.09.2019 31.03.2020 INR - - - - - - - - - - - 60.00%
Nebula East Africa Pvt Ltd (Nebula) 0.01 0.67 0.01 0.15 0.60 0.02 0.01 0.17
Pidilite Grupo Puma 16.09.2019 31.03.2020 INR - - - - - - - - - - - 100.00%
Pidilite Ventures Ltd (PVL) 0.18 8.24 0.02 0.25 0.88 0.03 0.03 0.28 Pvt Ltd
Pidilite East Africa Limited 0.05 2.40 (0.01) (0.16) (0.57) (0.02) (0.02) (0.18) Pidilite C-Techos Walling 05.03.2020 31.03.2020 INR - 0.01 (0.04) 0.01 0.04 - - (0.04) - (0.04) 60.00%
Nina Percept (Bangladesh) Pvt Ltd 0.01 0.28 (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) Ltd
Non-Controlling Interest 4.62 215.65 0.50 5.63 3.39 0.12 0.51 5.75 Pidilite Litokol Pvt Ltd 07.10.2019 31.03.2020 INR - 1.00 (0.05) 1.00 0.05 (0.05) - (0.05) 60.00%
Pidilite Grupo Puma 13.01.2020 31.03.2020 INR - 0.01 (0.04) 0.01 0.04 - - (0.04) - (0.04) - 50.00%
Vinyl Chemicals (India) Ltd (Associate) - - 0.00 0.01 - - 0.00 0.01
Manufacturing Ltd
Plus Call Technical Services LLC - - - - - - -
(Joint Venture) * % of holding and voting power either directly or indirectly through subsidiary as at 31st March 2020
** refer Note 56(c) of consolidated financial statements
244 TOTAL 100.00 4,671.26 100.00 1,122.05 100.00 3.54 100.00 1,125.59 Name of Subsidiaries which are yet to commence operations: Pidilite C-Techos Pvt Ltd and Pidilite Grupo Puma Pvt Ltd
Name of Subsidiaries which have been liquidated or sold during the year: Not Applicable
247

Information on Associates
(Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies)
( in crores)
Name of Associate Vinyl Chemicals (India) Ltd
1 Latest audited Balance Sheet Date 31st March 2020
2 Share of Associate held by the Company at the year end
Number 74,51,540
Amount of Investment in Associate 1.18
Extent of Holding % 40.64%
3 Description of how there is significant influence Associate
4 Reason why Associate is not consolidated refer Note 2.5
5 Networth attributable to Shareholding as per latest audited Balance Sheet 24.85
6 Profit/ Loss for the year
(i) Considered in Consolidation 3.03
(ii) Not Considered in Consolidation 4.43
Information on Joint Venture

(Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Joint Venture)
( in crores)
Name of Joint Venture Plus Call Technical Services LLC
1 Latest unaudited Balance Sheet Date 31st March 2020
2 Share of Joint Venture held by the Company at the year end
Number 57
Amount of Investment in Joint Venture 0.21
Extent of Holding % 40.00%
3 Description of how there is significant influence Not Applicable
4 Reason why Joint Venture is not consolidated refer Note 2.5
5 Networth attributable to Shareholding as per latest unaudited Balance Sheet -
6 Profit/ Loss for the year
(i) Considered in Consolidation -
(ii) Not Considered in Consolidation -

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
PUNEET BANSAL BHARAT PURI M B PAREKH

Company Secretary Managing Director Executive Chairman
DIN: 02173566 DIN: 00180955
PRADIP KUMAR MENON
Place: Mumbai
Chief Financial Officer
Date: 17th June 2020
246
DESIGN Pidilite Design Studio | PRIN T Parksons Graphics
Pidilite Industries Limited

Registered Office
Regent Chambers, 7th Floor
Jamnalal Bajaj Marg
208 Nariman Point
Mumbai 400 021
www.pidilite.com
Pidilite Industries Limited
Registered Office: Regent Chambers, 7th Floor, Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai 400 021.
Notice
NOTICE is hereby given that the 51st ANNUAL Committee, approval of the members of the
GENERAL MEETING of the Members of the Company Company be and is hereby accorded to the
will be held on Thursday, 10th September 2020 at re-appointment of Shri Bharat Puri (DIN: 02173566)
3.00 p.m. IST through Video Conferencing (“VC”)/ as the Managing Director of the Company, for a
Other Audio Visual Means (“OAVM”), to transact the further period of 5 (five) years with effect from
following business: 10th April 2020, on the terms and conditions
and payment of remuneration as set out in the
ORDINARY BUSINESS: Explanatory Statement attached to
1. To receive, consider and adopt: the Notice.”
a. the audited financial statements of the “RESOLVED FURTHER THAT Shri Bharat Puri,
Company for the financial year ended Managing Director be in charge of the general
31st March 2020 together with the reports management of the Company within the
of Board of Directors and Auditors’ thereon; provisions of Articles of Association but subject
b. the audited consolidated financial statements to superintendence, control and direction of the
of the Company for the financial year ended Board of Directors.”
31st March 2020 together with the report of “RESOLVED FURTHER THAT Shri Bharat Puri will
Auditors’ thereon. be a Key Managerial Personnel of the Company as
2. To confirm the payment of Interim Dividend, as the per the provisions of Section 203(1)(i) of the Act.”
final dividend, on equity shares for the financial “RESOLVED FURTHER THAT Shri Bharat Puri
year 2019-20. will be a non rotational Director and shall not be
3. To appoint a Director in place of Shri A B Parekh liable to retire by rotation during his term as the
(DIN: 00035317), who retires by rotation and Managing Director.”
being eligible, offers himself for re-appointment. “RESOLVED FURTHER THAT the Managing
4. To consider and, if thought fit, to pass, the Director shall be entitled to reimbursement of all
following resolution as a Special Resolution for expenses incurred for the purpose of the business
appointing a Director in place of Shri N K Parekh, of the Company and shall not be entitled to any
who retires by rotation and being eligible, offers sitting fees for attending meeting of the Board of
himself for re-appointment: Directors and Committee(s) thereof.”
“RESOLVED THAT pursuant to the provisions of “RESOLVED FURTHER THAT the Board be and
Section 152 and other applicable provisions of is hereby authorised to alter and vary terms
the Companies Act, 2013 and the Rules framed of appointment and remuneration so as not to
thereunder and Rule 17(1A) of Securities and exceed the limits specified in Schedule V and
Exchange Board of India (Listing Obligations other applicable Sections of the Act or any
and Disclosure Requirements) Regulations, statutory modifications thereof as may be agreed
2015 (including any statutory modification(s) or to by the Board of Directors and Shri Bharat Puri.”
re-enactment thereof for the time being in force) “RESOLVED FURTHER THAT the total
Shri N K Parekh (DIN: 00111518), who retires by remuneration by way of salary, perquisites,
rotation at this meeting and being eligible, offers allowances and commission payable to
himself for re-appointment, be and is hereby Shri Bharat Puri, Managing Director, in any Financial
re-appointed as a Director of the Company, Year shall not exceed 5% of the Net Profit of that
liable to retire by rotation.” Financial Year as per Section 197, Schedule V
SPECIAL BUSINESS: and other applicable provisions of the Act.”
5. To consider and, if thought fit, to pass, the “RESOLVED FURTHER THAT the Board be and
following resolution as an Ordinary Resolution: is hereby authorised to do all such acts, deeds
and things and execute all such documents,
“RESOLVED THAT pursuant to the provisions of instruments and writings as may be required
Sections 196, 197 and 203 read with Schedule V and to delegate all or any of its powers herein
and other applicable provisions, if any, of the conferred to any Committee of Directors.”
Companies Act, 2013 (the Act) and the Companies
(Appointment and Remuneration of Managerial 6. To consider and, if thought fit, to pass, the
Personnel) Rules, 2014 (including any statutory following resolution as an Ordinary Resolution:
modification(s) or re-enactment thereof for “RESOLVED THAT pursuant to the provisions of
the time being in force) and pursuant to the Sections 196, 197, Schedule V and other applicable
recommendation of Nomination and Remuneration provisions, if any, of the Companies Act, 2013 1
(the Act) read with Companies (Appointment 161 of the Act by the Board of Directors with “RESOLVED FURTHER THAT Shri Debabrata 10. To consider and if thought fit, to pass, the
and Remuneration of Managerial Personnel) Rules, effect from 1st March 2020 and holds office upto Gupta, Whole Time Director shall function as following resolution as an Ordinary Resolution:
2014 (including any statutory modification(s) the date of this Annual General Meeting and in “Director-Operations” and apart from other
“RESOLVED THAT pursuant to the provisions of
or re-enactment thereof for the time being in respect of whom the Company has received a duties that are entrusted to him from time to
force) and pursuant to the recommendation of notice in writing from a member under Section time, he shall be in overall charge of all the Section 148 and all other applicable provisions,
Nomination and Remuneration Committee, approval 160 of the Act proposing his candidature for factories of the Company (both existing and if any, of the Companies Act, 2013 and the
of the members of the Company be and is hereby the office of Director of the Company, be which may be set up in future) including factories Companies (Audit and Auditors) Rules, 2014
accorded to the re-appointment of Shri A N Parekh and is hereby appointed as a Director of the situated in the State of Maharashtra, Gujarat, (including any statutory modification(s) or
(DIN: 00111366), as a Whole Time Director of the Company, whose period of office shall be liable Himachal Pradesh, Telangana, Assam, Union re-enactment thereof, for the time being in force),
Company, for a further period of 5 (five) years to determination by retirement of Directors by Territory of Daman or any other State or Union the Cost Auditors M/s. V J Talati & Co., Cost
with effect from 1st July 2020, whose period of rotation.” Territory in India.” Accountants, (Registration No. 00213) appointed
office is liable to determination by retirement of by the Board of Directors of the Company, on the
8. To consider and, if thought fit, to pass, the 9. To consider and, if thought fit, to pass, the
Directors by rotation, on the terms and conditions following resolution as an Ordinary Resolution: recommendation of Audit Committee, to conduct
following resolution as a Special Resolution:
and payment of remuneration as set out in the the audit of the cost records of the Company for
Explanatory Statement attached to the Notice.” “RESOLVED THAT pursuant to the provisions “RESOLVED THAT pursuant to the provisions the financial year ending 31st March 2021, be paid
of Sections 196, 197 and Schedule V and other of Sections 149, 152 read with Schedule IV the remuneration as set out in the explanatory
“RESOLVED FURTHER THAT Shri A N Parekh, applicable provisions, if any, of the Companies and all other applicable provisions, if any,
Whole Time Director shall work under the statement annexed to the Notice convening this
Act, 2013 (the Act) read with the Companies of the Companies Act, 2013 and Companies
superintendence, control and direction of the meeting and the same is hereby ratified and
(Appointment and Remuneration of Managerial (Appointment and Qualification of Directors)
Board of Directors.” approved.”
Personnel) Rules, 2014 (including any statutory Rules, 2014 and the applicable provisions of the
“RESOLVED FURTHER THAT Shri A N Parekh, modification(s) or re-enactment thereof Securities and Exchange Board of India (Listing “RESOLVED FURTHER THAT the Board of
Whole Time Director shall be entitled to for the time being in force) and pursuant Obligations and Disclosure Requirements) Directors of the Company be and is hereby
reimbursement of all expenses incurred for the to the recommendation of Nomination and Regulations, 2015 (including any statutory authorised to do all such acts, deeds, matters
purpose of business of the Company and Remuneration Committee, approval of the modification(s), or re-enactment thereof and things and take all such steps as may be
shall not be entitled to any sitting fees for members of the Company be and is hereby for the time being in force) and pursuant necessary, proper or expedient to give effect
attending meetings of the Board of Directors accorded to the appointment of Shri Debabrata to the recommendation by Nomination and to this resolution.”
and Committee(s) thereof.” Gupta (DIN: 01500784) as a Whole Time Director Remuneration Committee, Shri Sanjeev Aga
of the Company designated as “Director- (DIN: 00022065), who was appointed as an
“RESOLVED FURTHER THAT the Board be and is Operations” of the Company, for a period Independent Director of the Company for five BY ORDER OF THE BOARD OF DIRECTORS
hereby authorised to alter and vary such terms and of 3 (three) years with effect from 1st March consecutive years from 46th Annual General
conditions of re-appointment and remuneration so 2020, whose period of office shall be liable
as to not to exceed the limits specified in Meeting (AGM) upto the conclusion of 51st AGM
to determination by retirement of Directors and being eligible, be and is hereby re-appointed Place : Mumbai PUNEET BANSAL
Schedule V and other applicable sections of the by rotation, on the terms and conditions and
Act or any statutory modifications thereof as as an Independent Director of the Company Date : 17th June 2020 COMPANY SECRETARY
payment of remuneration as set out in the to hold office for a second consecutive term
may be agreed to by the Board of Directors Explanatory Statement attached to the Notice.” Registered Office:
and Shri A N Parekh.” commencing from the conclusion of 51st AGM up
to 31st March 2025 and he shall not be liable to Regent Chambers, 7th floor,
“RESOLVED FURTHER THAT Shri Debabrata Jamnalal Bajaj Marg,
“RESOLVED FURTHER THAT the total remuneration Gupta, Whole Time Director shall work under the retire by rotation.”
by way of salary, perquisites and allowances and 208, Nariman Point,
superintendence, control and direction of the “RESOLVED FURTHER THAT the Board of
commissions payable to Shri A N Parekh, Whole Mumbai 400 021.
Board of Directors.” Directors and/or the Company Secretary be and
Time Director, in any Financial Year shall not exceed Tel : 91 22 2835 7000
5% of the Net Profit of that Financial Year as per “RESOLVED FURTHER THAT the total are hereby authorised to settle any question, Fax : 91 22 2821 6007
Section 197, Schedule V and other applicable remuneration by way of salary, perquisites and difficulty or doubt that may arise in giving effect
E-mail : [email protected]
provisions of the Act.” allowances payable to Shri Debabrata Gupta, to this resolution and to do all such acts, deeds
Website : www.pidilite.com
Whole Time Director, in any Financial Year shall and things as may be necessary, expedient and
“RESOLVED FURTHER THAT the Board be and CIN : L24100MH1969PLC014336
not exceed 5% of the Net Profit of that Financial desirable for the purpose of giving effect to
is hereby authorised to do all such acts, deeds Year as per Section 197, Schedule V and other this resolution.”
and things and execute all such documents, applicable provisions of the Act.”
instruments and writings as may be required
and to delegate all or any of its powers herein “RESOLVED FURTHER THAT the Board be and
conferred to any Committee of Directors.” is hereby authorised to vary and/ or modify the
terms and conditions of appointment including
7. To consider and, if thought fit, to pass, the remuneration and perquisites payable to
following resolution as an Ordinary Resolution: Shri Debabrata Gupta in such manner as
“RESOLVED THAT pursuant to the provisions of may be agreed to between the Board and
Section 152 and all other applicable provisions Shri Debabrata Gupta within and in accordance
if any, of the Companies Act, 2013 (the Act) and with the limits prescribed in Schedule V to the
Companies (Appointment and Qualification of Act or in accordance with the changes that may
Directors) Rules, 2014 (including any statutory be effected in that Schedule.”
modification(s) or re-enactment thereof for “RESOLVED FURTHER THAT the Board be and
the time being in force) Shri Debabrata Gupta is hereby authorised to do all such acts, deeds
(DIN: 01500784) who was appointed as an and things and execute all such documents,
Additional Director of the Company pursuant instruments and writings as may be required
to the recommendation of Nomination and and to delegate all or any of its powers herein
2
Remuneration Committee, in terms of Section conferred to any Committee of Directors.” 3
Notes:
1. In view of the continuing COVID-19 pandemic, with the Company/ Depositories. Members may (i) Company’s R & T Agents in case of shares D. As per Section 124(6) of the Act read with
the Ministry of Corporate Affairs (the MCA) has, note that the Notice and Annual Report 2019-20 held in Physical Form or the IEPF Rules as amended, all the shares
vide its circular dated 5th May 2020 read will also be available on the Company’s website in respect of which dividend has remained
with circulars dated 8th April 2020 and (ii) Depository Participants (DP) in case of
www.pidilite.com, websites of the Stock Exchanges unpaid/unclaimed for seven consecutive years
13th April 2020 (collectively referred to as “MCA shares held in Electronic Form. or more as referred to in the said section read
i.e. BSE Limited and National Stock Exchange
Circulars”) permitted the holding of the annual of India Limited at www.bseindia.com and 16. To prevent fraudulent transactions, Members are with the relevant Rules, have been transferred
general meetings (AGM/ Meeting) through Video www.nseindia.com respectively and on the advised to exercise due diligence and notify the to the IEPF Demat Account.
Conferencing (“VC”) or other Audio Visual Means website of NSDL https://www.evoting.nsdl.com Company of any change in address or demise E. The Company has sent notice to all the
(“OAVM”), without the physical presence of the of any member as soon as possible. Periodic Members whose dividends for the financial
Members at a common venue. In compliance 10. Members attending the AGM through VC/ OAVM
statement of holdings should be obtained from year ending 31st March 2013 are lying unpaid/
with the provisions of the Companies Act, 2013 shall be counted for the purpose of reckoning the
the concerned DP and holdings should be verified. unclaimed against their name. Members are
(“Act”), SEBI (Listing Obligations and Disclosure quorum under Section 103 of the Act.
requested to claim the same. As mentioned
Requirements) Regulations, 2015 (“SEBI Listing 11. In accordance with the provisions of Regulation 17. Members can avail nomination facility in terms of
in the said notice, in case the dividends are
Regulations”) and MCA Circulars, the 51st Annual 36(3) of SEBI Listing Regulations and applicable extant legal provisions in this regard. On request,
not claimed by 14th August 2020, necessary
General Meeting (the AGM) of the Company is provisions of Secretarial Standard-2, a brief profile the necessary Form SH-13 can be obtained from
steps will be initiated by the Company to
being held through VC/ OAVM. The deemed venue of Shri A B Parekh, Shri N K Parekh, Shri Bharat the Company’s R & T Agents. transfer the shares and dividend held by the
for the AGM shall be the Registered Office of the Puri, Shri A N Parekh, Shri Debabrata Gupta and 18. To support the ‘Green Initiative’, Members who concerned Members to IEPF, without further
Company. Shri Sanjeev Aga, nature of their expertise in have not yet registered their email addresses are notice. Please note that no claim shall lie
specific functional areas, names of companies in requested to register the same with their DPs in against the Company in respect of the shares
2. Since this AGM is being held pursuant to the MCA
which they hold directorships and memberships/ case the shares are held by them in electronic so transferred to IEPF.
Circulars through VC/ OAVM, physical attendance
of Members has been dispensed with. Accordingly, chairmanships of committees of directors, their form and with Company’s R & T Agents in case F. In the event of transfer of shares and the
the facility for appointment of proxies by the shareholding and relationships between directors the shares are held by them in physical form. unclaimed dividends to IEPF, Members
Members will not be available for the AGM and inter se and other information, is set out and the are entitled to claim the same from IEPF
same forms part of this Notice. 19. Members are requested to send their queries,
hence the Proxy Form and Attendance Slip are by submitting an online application in the
if any, at least ten days in advance of the
not annexed to this Notice. 12. The Register of Members and Share Transfer prescribed Form IEPF-5 available on the
date of holding AGM through email on website www.iepf.gov.in and sending a
3. Corporate members are requested to send Books of the Company will be closed from Friday, [email protected]. The same will be physical copy of the same duly signed to the
to the Company a scanned copy (PDF/JPG 4th September 2020 to Thursday, 10th September, replied by the Company suitably. Company along with the requisite documents
Format), certified copy of the Board Resolution/ 2020 (both days inclusive) for the purpose of
20. A. Pursuant to Section 205A of the Companies enumerated in the Form IEPF-5.
Authorisation authorizing their representative to the AGM.
Act, 1956 all unclaimed/ unpaid dividend G. The Company has uploaded the details of
attend and vote on their behalf through remote 13. The Securities and Exchange Board of India (SEBI) up to the financial year ended 31st March, unpaid and unclaimed amounts lying with
evoting at [email protected]. The said has mandated the submission of Permanent 1994 have been transferred to the General the Company as on 6th August 2019 (date of
Resolution/Authorisation shall also be sent to the Account Number (PAN) by every participant in Revenue Account of the Central Government. last AGM) on the website of the Company
Scrutinizer by email through its registered email securities market. Members holding shares in (www.pidilite.com) and also on the Ministry of
Those Members who have so far not claimed
address to [email protected] with a copy electronic form are required to submit their PAN as Corporate Affairs website.
their dividends for the said periods may
marked to [email protected] well as bank details to their Depository Participants claim the same by submitting an application Members who have not yet encashed their
4. In case of joint holders attending the AGM, only and Members holding shares in physical form in the prescribed form to the Registrar of Dividend Warrants for the years ended
such joint holder who is higher in the order of shall submit their PAN as well as bank details to Companies, Maharashtra. 31st March 2013 to 31st March 2020 including
names will be entitled to vote. the Company/ TSR Darashaw Consultants Private
B. The Company has transferred unclaimed/ interim dividend declared on 5th March 2020
Limited, the Company’s Registrar & Share Transfer
5. A statement pursuant to Section 102(1) of the Act, unpaid dividend (including the Interim are requested to contact the R & T Agents,
Agents (Company’s R & T Agents). M/s. TSR Darashaw Consultants Private Ltd.,
setting out all material facts relating to item Dividend declared during the Financial
nos. 4 to 10 of the Notice is annexed herewith and 14. As per Regulation 40 of the SEBI Listing Unit: Pidilite Industries Limited, 6-10, Haji Moosa
Year 2001-2002) in respect of Financial Years
Regulations, as amended, securities of Patrawala Indl. Estate, 20, Dr. E. Moses Road,
the same should be taken as part of this Notice. ended 31st March 1995 to 31st March 2012
listed companies can be transferred only in Mahalaxmi, Mumbai 400 011.
6. Notes given in the Notice to the extent applicable to the Investor Education and Protection
dematerialized form w.e.f 1st April 2019, except 21. In March 2008, some of the members of Vinyl
also forms part of the Explanatory Statement. Fund (IEPF).
in case of request received for transmission or Chemicals (India) Limited (VCIL) were allotted
7. Members seeking any information with regard transposition of securities. In view of this and C. Sections 124 and 125 of the Act read with 6% Secured Redeemable Preference Shares of
to the accounts, inspection of documents or to eliminate all risks associated with physical the Investor Education and Protection Fund 10 each (Preference Shares) by the Company
any matter to be placed at the AGM, are shares and for ease of portfolio management, Authority (Accounting, Audit, Transfer and pursuant to the Scheme of Demerger of VAM
requested to write to the Company on or members holding shares in physical form are Refund) Rules, 2016 (‘IEPF Rules’), both of Manufacturing Unit of VCIL into the Company.
before 1st September 2020 through email on requested to consider converting their holdings which were made applicable with effect The said Preference Shares were redeemed
[email protected]. The same to dematerialized form. Members can contact from 7th September 2016, also contain similar on 5th September 2008 and the Company had
will be replied by the Company suitably. the Company or Company’s R & T Agents for provisions for transfer of such amounts to despatched Preference Dividend-cum-Redemption
assistance in this regard. IEPF. Accordingly, all unclaimed/unpaid Warrants to all Preference Shareholders without
8. Since the AGM will be held through VC/ OAVM, the dividend, as well as the principal redemption surrender of the Preference Share Certificates. The
Route Map of the venue of AGM is not annexed in 15. The Members are requested to inform of any
amount of preference shares, as applicable, unclaimed preference shares redemption amount
changes, if any, pertaining to their name, postal and the dividend pertaining to the same has been
this Notice. remaining unclaimed/unpaid for a period of
address, email address, telephone/ mobile transferred to IEPF and hence no claim shall lie in
9. In compliance with the aforesaid MCA Circulars numbers, Permanent Account Number (PAN), seven years from the date they became due
respect thereof against the Company.
and SEBI Circular dated 12th May 2020, Notice of mandates, nominations, power of attorney, bank for payment, in relation to the Company, have
the AGM along with the Annual Report 2019-20 is details viz. name of the bank and branch details, been transferred to the IEPF established by 22. Voting through electronic means/ballot paper
being sent only through electronic mode to those bank account number, MICR code, IFSC, etc., the Central Government. No claim shall be I. In compliance with provisions of Section 108
Members whose email addresses are registered immediately to: entertained against the Company for the of the Act and Rules issued thereunder and
4 5
amounts so transferred. Regulation 44 of SEBI Listing Regulations,
Members are provided with the facility to b) If you are using NSDL e-Voting system ii. After click on Active Voting Cycles, you will THE INSTRUCTIONS FOR MEMBERS FOR E-VOTING
cast their vote by electronic means through for the first time, you will need to be able to see all the companies “EVEN” in ON THE DAY OF THE AGM ARE AS UNDER:-
the remote e-voting platform as well as venue retrieve the ‘initial password’ which was which you are holding shares and whose 1. The procedure for e-Voting on the day of the AGM
e-voting on the date of AGM has been provided communicated to you. Once you retrieve voting cycle is in active status. remains same as the instructions mentioned above
by National Securities Depository Limited your ‘initial password’, you need to enter iii. Select “EVEN” of the Company. for remote e-Voting.
(NSDL) on all resolutions set out in this Notice. the ‘initial password’ and the system will
Resolutions passed by the Members through iv. Now you are ready for e-Voting as the Voting 2. Only those Members/ shareholders, who will be
force you to change your password.
e-voting is/are deemed to have been passed, page opens. present in the AGM through VC/OAVM facility
as if they have been passed at the AGM. c) How to retrieve your ‘initial password’? and have not casted their vote on the Resolutions
v. Cast your vote by selecting appropriate
through remote e-Voting and are otherwise not
II. The Members who have casted their vote by (i) If your email ID is registered in your options i.e. assent or dissent, verify/modify
barred from doing so, shall be eligible to vote
remote e-voting prior to the AGM may also demat account or with the Company, the number of shares for which you wish to
through e-Voting system in the AGM.
attend/ participate in the AGM through VC/ your ‘initial password’ is communicated cast your vote and click on “Submit” and also
OAVM but shall not be entitled to cast their to you on your email ID. Trace the “Confirm” when prompted. 3. The details of the person who may be contacted
vote again. email sent to you from NSDL from your for any grievances connected with the facility for
vi. Upon confirmation, the message “Vote cast
III. The instructions for e-voting are as under: mailbox. Open the email and open successfully” will be displayed. e-Voting on the day of the AGM shall be the same
person mentioned for remote e-Voting.
i. Step 1 - Visit the e-Voting website of NSDL. the attachment i.e. a .pdf file. Open vii. You can also take the printout of the votes
Open web browser by typing the following the .pdf file. The password to open cast by you by clicking on the print option on General Guidelines for shareholders
URL: https://www.evoting.nsdl.com/ either the .pdf file is your 8 digit client ID for the confirmation page. i. Institutional shareholders (i.e. other than
on a Personal Computer or on a mobile. NSDL account, last 8 digits of client ID individuals, HUF, NRI etc.) are required to send
viii. Once you confirm your vote on the resolution,
for CDSL account or folio number for scanned copy (PDF/JPG Format) of the relevant
ii. Once the home page of e-Voting system is you will not be allowed to modify your vote.
shares held in physical form. The .pdf Board Resolution/ Authority letter etc. with
launched, click on the icon “Login” which Process for registration of email id for obtaining
is available under ‘Shareholders’ section. file contains your ‘User ID’ and your attested specimen signature of the duly authorized
‘initial password’. Annual Report and updation of bank account signatory(ies) who are authorized to vote, to the
iii. A new screen will open. You will have to mandate for receipt of dividend: Scrutinizer by e-mail to [email protected]
enter your User ID, your Password and a (ii) If your email ID is not registered,
with a copy marked to [email protected].
Verification Code as shown on the screen. please follow instructions mentioned Physical Holding Send a signed letter to the Company’s
below in this notice. ii. It is strongly recommended not to share your
Alternatively, if you are registered for R & T Agents providing Folio No., name
password with any other person and take utmost
NSDL eservices i.e. IDEAS, you can log-in vi. If you are unable to retrieve or have not of shareholder along with copy of PAN
care to keep your password confidential. Login
at https://eservices.nsdl.com/ with your received the “initial password” or have (self attested) and email-id details for
to the e-voting website will be disabled upon
existing IDEAS login. Once you log-in to forgotten your password: registering email address. five unsuccessful attempts to key in the correct
NSDL eservices after using your log-in password. In such an event, you will need to go
credentials, click on e-Voting and you a) Click on “Forgot User Details/Password?” For updating bank account mandate,
hard copies of the following documents through the “Forgot User Details/Password?” or
can proceed to Step 2 i.e. Cast your vote (If you are holding shares in your demat
are to be sent to R & T Agents: “Physical User Reset Password?” option available
electronically. account with NSDL or CDSL) option
on www.evoting.nsdl.com to reset the password.
available on www.evoting.nsdl.com. a. Signed letter mentioning your Name,
iv. Your User ID details are given below: iii. In case of any queries, you may refer the Frequently
“Physical User Reset Password?”
b) Folio Number, complete address and
following details relating to Bank Asked Questions (FAQs) for Shareholders and
Manner of holding Your User ID is: (If you are holding shares in e-voting user manual for Shareholders available at
shares i.e. Demat physical mode) option available on Account in which the dividend is to
the download section of www.evoting.nsdl.com or
(NSDL or CDSL) www.evoting.nsdl.com. be received:
call on toll free no.: 1800-222-990 or send a request
or Physical i) Name and Branch of Bank and
c) If you are still unable to get the password at [email protected].
a. For Members 8 Character DP ID followed Bank Account type;
by aforesaid two options, you can send a iv. Any person, who acquires shares of the Company
who hold by 8 Digit Client ID ii) Bank Account Number
request at [email protected] mentioning and becomes member of the Company after
shares in For example if your DP ID your demat account number/folio number, allotted by your Bank after dispatch of the notice and holding shares as of the
demat account is IN300*** and Client ID is
your PAN, your name and your registered implementation of Core Banking cut-off date i.e. 3rd September 2020, may obtain
with NSDL. 12****** then your user ID is
address. Solutions and; the login ID and password by sending a request at
IN300***12****** [email protected] or Issuer/RTA.
iii) 11 digit IFSC Code.
b. For Members 16 Digit Beneficiary ID d) Members can also use the one-time
password (OTP) based login for casting b. Cancelled cheque in original bearing v. The remote e-voting period shall commence on
who hold For example if your Sunday, 6th September 2020 at 9.00 a.m. and
shares in Beneficiary ID is the votes on the e-Voting system of NSDL. the name of the Member or first
would end on Wednesday, 9th September 2020 at
demat account holder, in case shares are held jointly;
12************** then your vii. After entering your password, tick on Agree 5.00 p.m. During this period, shareholders of the
with CDSL. c. Self-attested copy of the PAN Card
user ID is 12************** to “Terms and Conditions” by selecting on the Company, holding shares either in physical form or
check box. and; in dematerialized form as on 3rd September 2020
c. For Members EVEN Number followed by
holding shares Folio Number registered d. Self-attested copy of any document (cut-off date) may cast their vote electronically.
viii. Now, you will have to click on “Login” button. The remote e-voting module shall be disabled
in Physical with the company (viz. Aadhar Card, Driving License,
Form. ix. After you click on the “Login” button, Home Election Identity Card, Passport) for by NSDL for voting thereafter. Once the vote
For example if folio number on a resolution is cast by the shareholder, the
page of e-Voting will open. address verification of the Member
is 001*** and EVEN is shareholder shall not be allowed to change/modify
101456 then user ID is Step 2: Cast your vote electronically on NSDL as registered with the Company/
R & T Agents.
it subsequently or cast the vote again.
101456001*** e-Voting system
vi. The voting rights of shareholders shall be in
v. Your password details are given below: i. After successful login at Step 1, you will be Demat Holding Please contact your Depository proportion to the share in the paid up equity share
able to see the Home page of e-Voting. Participant (DP) and register your email capital of the Company as on 3rd September 2020,
a) If you are already registered for e-Voting, address and bank account details in
Click on e-Voting. Then, click on Active the cut off date. Any person who is not a Member
then you can use your existing password your demat account, as per the process
Voting Cycles. as on the cut-off date should treat this Notice for
6 to login and cast your vote. advised by your DP. 7
information purposes only.
EXPLANATORY STATEMENT
INSTRUCTIONS FOR MEMBERS FOR ATTENDING VII. Shri M M Sheth, Practising Company Secretary Pursuant to Section 102 of the Companies Act, 2013
THE AGM THROUGH VC/ OAVM ARE AS UNDER: (Membership No. FCS 1455 CP No. 729) or (the ‘Act’)
1. Members will be able to attend the AGM failing him, Smt. Ami M Sheth (Membership No. Item No. 4 ii. Other Perquisites/ Allowances:
through VC/ OAVM or view the live ACS 24127 CP No. 13976) have been appointed This statement is provided, though strictly not Following Perquisites/ Allowances shall not
webcast of AGM provided by NSDL at as the ‘Scrutinizer’ to scrutinize remote e-voting required as per section 102 of the Act. exceed an amount of 1,20,00,000 (Rupees
https://www.evoting.nsdl.com by using process and also e-voting at the AGM in a fair Shri N K Parekh (Vice-Chairman) (DIN: 00111518), One Crore Twenty Lakhs only) per annum, on a
their remote e-voting login credentials and and transparent manner. is due to retire by rotation and being eligible offers cost to company basis:
selecting the EVEN for Company’s AGM. himself for re-appointment as a Non-Executive
VIII. The Scrutinizer shall immediately after the a. Residential Accommodation:
2. Members who do not have the User ID and Director of the Company.
conclusion of voting at the AGM, first scrutinise The Company shall provide rent free
Password for e-voting or have forgotten the In terms of the Regulation 17(1A) of the SEBI furnished accommodation to Shri Bharat
the votes cast at the AGM, thereafter unlock the (Listing Obligations and Disclosure Requirements)
User ID and Password may retrieve the same Puri or shall give House Rent Allowance of
votes cast through remote e-voting and shall Regulations, 2015, (Listing Regulations) in past,
by following the remote e-voting instructions an amount not exceeding 20% of Salary.
make not later than 48 hours of conclusion of members have approved, by passing Special
mentioned in the Notice. Further Members can Resolution by means of Postal Ballot as well as in the b. Reimbursement of gas, electricity, water.
the Meeting, a consolidated Scrutiniser’s Report
also use the OTP based login for logging into of the total votes cast in favour or against, if any, 50th AGM held on 6th August 2019, continuation of c. Furnishings/ Furnitures/ Equipments and
the e-voting system of NSDL. tenure of directorship of Shri N K Parekh as Home Appliances.
to the Chairman or a person authorised by him
Non-Executive Director. d. Reimbursement of travel and stay
3. Facility of joining the AGM through VC/ in writing who shall countersign the same.
Shri N K Parekh has been serving as a Director of expenses for proceeding on leave once a
OAVM shall open 30 minutes before the time IX. The Results alongwith the Scrutinizer’s Report the Company since 1969 and is a promoter of the year in respect of self and family including
scheduled for the AGM and will be available for shall be placed on the Company’s website Company. It would be in interest of the Company all expenses in connection with the travel
Members on first come first served basis. www.pidilite.com and on the website of NSDL to continue to avail his services as a Non-Executive and stay for self and family.
4. Members are advised to join the Meeting using within 48 hours of conclusion of the 51st AGM of Director of the Company. e. Reimbursement of membership fees/
stable Wi-Fi or LAN Connection to mitigate the Company and communicated to BSE Limited A brief profile of Shri N K Parekh as stipulated under subscription for 2 clubs in India.
Regulation 36(3) of Listing Regulations is given in this f. Medical and Personal Accident Insurance.
any kind of aforesaid glitches and disturbance and National Stock Exchange of India Limited.
Notice.
during the meeting. g. Company’s car/s with driver.
Shri N K Parekh and his relative Shri A N Parekh are
5. Members who need assistance before or interested in this resolution. h. Reimbursement of actual medical
during the AGM, can contact NSDL on expenses incurred in India and/or abroad
Save and except above, none of the other Directors,
including hospitalisation for self and family.
[email protected]/ 1800-222-990 or contact Key Managerial Personnel of the Company and their
Mr. Amit Vishal, Senior Manager – NSDL at relatives are concerned or interested, financially or i. Other Allowances as may be approved by
otherwise, in this resolution. the Board from time to time.
[email protected]/ 022-24994360 or Mr. Sagar
Ghosalkar, Assistant Manager- NSDL at The Board of Directors recommends the Special The Board will decide the increment upto
Resolution for approval by the Members. a ceiling of 15% of the amounts specified in
[email protected]/ 022-24994553.
Item No. 5 Item No. A, B, C and D above. Subsequent
6. Members who would like to express their increment will become due on 1st April every
In accordance with the recommendation of the year and the Board will decide the increment
views or ask questions during the AGM may
Nomination and Remuneration Committee, the upto 15% of the amounts specified in Item
register themselves as a speaker by sending Board of Directors of the Company at their meeting No. A, B, C and D above and drawn in the
their request from their registered email held on 5th March 2020 have, subject to approval immediate previous year.
address mentioning their name, DP ID and of the Members, re-appointed Shri Bharat Puri
(DIN: 02173566) as the Managing Director of the iii. Following perquisites/benefits over and above
Client ID/folio number, PAN, mobile number
Company for a further period of 5 years with effect the ceiling prescribed in (D)(ii) above:
at [email protected] from
from 10th April 2020 on the following terms and a. Telephone and other communication
5th September 2020 (9:00 a.m. IST) to
conditions: facilities at residence.
7th September 2020 (5:00 p.m. IST). Those
A. Salary: b. Encashment of unavailed earned leave as
Members who have registered themselves
Salary of 5,37,00,000/- (Rupees Five Crore per rules of the Company.
as a speaker will only be allowed to express
Thirty Seven Lakhs only) per annum with first iv. In addition to the above remuneration, the
their views/ask questions during the AGM. increment due on 1st April 2021. Company, subject to necessary approvals, shall
The Company reserves the right to restrict the offer the Managing Director stock options.
B. Special Allowance:
number of speakers and number of questions
An amount of 1,55,00,000/- (Rupees One Crore E. Commission:
depending on the availability of time for
Fifty Five Lakhs only) per annum. Shri Bharat Puri shall be entitled to commission
the AGM.
C. Variable Pay: of an amount of 0.25% of the net profits of the
An amount not exceeding 60% of basic salary. Company, to be determined by the Board from time
to time based on the net profits of the Company
D. Perquisites/ Benefits/ Allowances: subject to overall ceiling laid down in Sections 197
i. Contribution to Provident Fund, payment of and 198 of the Companies Act, 2013.
Superannuation/ Gratuity: Shri Puri, aged 59 years, is a graduate in Commerce
a. Contribution to Provident Fund as per and has completed his Post Graduate Diploma
rules of the Company. in Business Administration from the Indian
b. Superannuation benefits as per rules of Institute of Management-Ahmedabad. He has vast
the Company. experience of over 37 years in the field of Sales,
c. Gratuity payment as per rules of the Marketing and General Management in leading
8 FMCG Companies viz. Asian Paints, Cadbury, 9
Company.
Kraft Foods and Mondelez International, both in ii. a. Contribution to Provident Fund as per rules Save and except above, none of the other Directors, ceiling of 15% of the salary. Subsequent increment
India and abroad. Last remuneration drawn by of the Company. Key Managerial Personnel and their relatives are will become due on 1st April every year and the
Shri Puri is as approved by the Members earlier. b. Superannuation benefits as per rules of the concerned or interested (financially or otherwise), in Board will decide increment upto 15% of salary
In accordance with the provisions of Regulation any way, in this resolution. drawn in the immediate previous year.
Company.
36(3) of SEBI (Listing Obligations and Disclosure The Board recommends this resolution for approval by II. Allowances:
Requirements), Regulations, 2015, a brief profile of c. Gratuity payment as per rules of the
the Members. 5,96,750/- (Rupees Five Lakh Ninety Six
Shri Puri is given as an annexure to this Notice and Company.
forms part of this explanatory statement. Item No. 7 Thousand Seven Hundred Fifty Only) per month
iii. Other Perquisites/ Allowances:
The Board of Directors of the Company has appointed, and the increment will be subject to a ceiling of
Shri Puri is a fit and proper person for the post Following Perquisites/ Allowances shall not 15% per annum.
of Managing Director. The terms and conditions pursuant to the provisions of Section 161(1) of the
exceed an amount equivalent to the annual salary: III. Perquisites:
of his re-appointment are fair and reasonable. Act and the Articles of Association of the Company,
It would be in the interest of the Company a. Reimbursement of gas, electricity, water. Shri Debabrata Gupta (DIN: 01500784) as an i. Housing: House Rent Allowance of 3,00,000/-
to continue to avail services of Shri Puri as a b. Furnishings/ Furnitures/ Equipments and Additional Director of the Company with effect per month which may be revised from time to
Managing Director. Home Appliances. from 1st March 2020. time as per rules of the Company as applicable to
The above may be treated as written memorandum In terms of the provisions of Section 161(1) of the Act, senior employees.
c. Reimbursement of travel and stay expenses
setting out the terms of re-appointment of for proceeding on leave once a year in Shri Debabrata Gupta would hold office up to the date ii. Car Allowance (including driver allowance and
Shri Puri u/s 190 of the Act. The Members approval respect of self and family including all of the ensuing Annual General Meeting. fuel allowance) of 1,02,500/- per month which
is required for the above under Schedule V and expenses in connection with the travel and Shri Debabrata Gupta, aged 57 years, has a multi- may be revised from time to time as per rules of
other applicable provisions of the Companies stay for self and family. industry experience of over 30 years with noted the Company.
Act, 2013. corporates like Hindustan Unilever Limited, Coca Cola iii. Employee Stock Option Plan (ESOP) as may be
d. Reimbursement of membership fees/
Except Shri Puri, none of the other Directors subscription for 2 clubs in India. India, Reckitt Benckiser (India) Private Limited, USV granted from time to time.
or Key Managerial Personnel of the Company Private Limited and UPL Limited. Shri Gupta, an alumni
e. Medical and Personal Accident Insurance. IV. Other Benefits:
and their relatives are interested or concerned, of IIT Kharagpur, has had a long and successful career
financially or otherwise, in this resolution. f. Other Allowances as may be approved by the which brings a very rich suite of experience that will Other Benefits shall include use of telephone
Board from time to time. certainly enrich Company’s Manufacturing Operations for the Company’s business at residence (the
The Board of Directors recommends this expenses whereof, excepting personal long
Resolution for approval by the Members. Function. In accordance with the provisions of
iv. Following perquisites/ benefits over and above Regulation 36(3) of SEBI (Listing Obligations and distance calls, would be borne and paid by
Item No. 6 the ceiling prescribed in (D)(iii) above: Disclosure Requirements), Regulations, 2015, a brief the Company), contribution to Provident and
Shri A N Parekh (DIN: 00111366) was appointed as the a. Company’s car/s with driver/s and/or other profile of Shri Gupta is given as an annexure to this Superannuation Funds and all other benefits
Whole Time Director from 1st July 2015 to 30th June suitable conveyance facilities. Notice and forms part of this explanatory statement. as are applicable to senior employees of the
2020. The Board of Directors of the Company, at their Company (including but not limited to gratuity,
b. Telephone and other communication facilities The Company has received a notice in writing from a medical benefits, leave entitlement, encashment
meeting held on 17th June 2020 have, subject to the at residence. member under Section 160 of the Act proposing the
approval of Members, re-appointed Shri A N Parekh of leave) in accordance with the schemes of the
c. Reimbursement of actual medical expenses candidature of Shri Gupta for the office of Director of Company.
as Whole Time Director for a further period of 5 (five) the Company.
years with effect from 1st July 2020 on the following incurred in India and/or abroad including V. Other Perquisites:
terms and conditions, based on the recommendation hospitalisation for self and family. (Family Shri Gupta is not disqualified from being appointed as
shall mean spouse, children and parents). a Director in terms of Section 164 of the Act and has Other Perquisites (including allowances not
of Nomination and Remuneration Committee: covered above) in such form and to such extent as
given his consent to act as a Director.
A. Salary: d. Encashment of unavailed earned leave as per may be decided by the Managing Director subject
rules of the Company. The Nomination and Remuneration Committee has to a ceiling of 7,00,000/- (Rupees Seven Lakh
Salary of 4,44,148 (Rupees Four Lakhs Forty recommended the appointment of Shri Gupta as a
Four Thousand One Hundred and Forty Eight Perquisites shall be evaluated as per Income Tax Rules Only) per annum.
Director.
Only) per month with first increment due on where applicable. The increment will be determined by the Board
1st October 2020 (for the period from 1st October, Keeping in view his vast expertise and knowledge, it of Directors on the recommendation of the
Shri A N Parekh, aged 48 years, is a Chemical will be in the interest of the Company that, Shri Gupta
2020 to 31st March 2021). The Board will decide Engineer with qualification of B.S. Chem Engg (U.S.A) Nomination and Remuneration Committee.
the increment upto a ceiling of 15% of the salary. be appointed as a Director of the Company.
having experience of 26 years. Last remuneration In accordance with the resolution, within the
Subsequent increment will become due on 1st April Except, Shri Debabrata Gupta, none of the other aforesaid limits, the amount of salary and
drawn by Shri A N Parekh is as approved by the
every year and the Board will decide increment Directors, Key Managerial Personnel of the Company perquisites payable to Shri Gupta (including the
Members earlier. In accordance with the provisions
upto 15% of salary drawn in the immediate and their relatives are concerned or interested, types and amount of each type of perquisite) will
of Regulation 36(3) of SEBI (Listing Obligations and
previous year. financially or otherwise in this resolution. be decided by the Managing Director from time to
Disclosure Requirements), Regulations, 2015, a brief
B. Commission: profile of Shri A N Parekh is given as an annexure The Board recommends this Resolution for approval time as he may deem fit in his absolute discretion.
Shri A N Parekh shall be entitled to commission, to this Notice and forms part of this explanatory by the Members. The valuation of perquisites will be as per the
the amount of it shall be determined by the Board statement. Item No. 8 Income-tax Rules, 1962, in cases where the same
from time to time based on the net profits of the Shri A N Parekh is a fit and proper person for the post is otherwise not possible to be evaluated.
Company subject to overall ceiling laid down in The Board of Directors of the Company at their
of Whole Time Director. The terms and conditions of meeting held on 29th January 2020 have, subject to Shri Gupta, aged 57 years, has a multi-industry
Sections 197 and 198 of the Companies Act, 2013. his re-appointment are fair and reasonable. It would experience of over 30 years with noted corporates
the approval of Members, appointed Shri Debabrata
C. Special Allowance: be in the interest of the Company to continue to avail Gupta (DIN: 01500784) as a Whole Time director like Hindustan Unilever Limited, Coca Cola India,
The amount shall be determined by the Board services of Shri A N Parekh as Whole Time Director. of the Company, designated as Director-Operations Reckitt Benckiser (India) Private Limited, USV Private
from time to time but shall not exceed the amount The above may be treated as written memorandum for a period of 3 (three) years from 1st March 2020, Limited and UPL Limited. Shri Gupta, an alumni of
equivalent to annual salary. setting out the terms of re-appointment of on the following terms and conditions based on the IIT Kharagpur, has had a long and successful career
recommendation of Nomination and Remuneration which brings a very rich suite of experience that will
D. Perquisites/Benefits/ Allowances: Shri A N Parekh u/s 190 of the Act. The Members’
Committee. certainly enrich Company’s Manufacturing Operations
approval is required for the above under Schedule V
i. Residential Accommodation: Function. In accordance with the provisions of
and other applicable provisions of the Companies I. Salary:
The Company shall provide rent free furnished Regulation 36(3) of SEBI (Listing Obligations and
Act, 2013. Salary of 6,00,000/- (Rupees Six Lakhs Only) Disclosure Requirements), Regulations, 2015, a brief
accommodation to Shri A N Parekh or shall give
House Rent Allowance equivalent to 30% of the Shri A N Parekh and his relative Shri N K Parekh are per month with first increment due on 1st April profile of Shri Gupta is given as an annexure to this
10 salary or shall provide combination of both. interested in this resolution. 2021. The Board will decide the increment upto a Notice and forms part of this explanatory statement. 11
Shri Gupta is a fit and proper person for the post of
Whole Time Director. The remuneration payable to
for participating in the Board and other meetings and
profit related commission within the limits stipulated
ADDITIONAL INFORMATION ON DIRECTORS SEEKING ELECTION AT THE
him is fair and reasonable. The proposed remuneration under Section 197 of the Act. Copy of draft letter of ANNUAL GENERAL MEETING
payable is within the limits specified in Schedule V appointment of Shri Aga setting out the terms and [under Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]:
of the Companies Act, 2013. The Members’ approval conditions of appointment is available for inspection by
is required for the same under Schedule V and other the Members through electronic mode, on the basis of
applicable provisions of the Companies Act, 2013. request being sent on [email protected]. Resolution/ 3 4 5 6 7&8 9
The above may be treated as written memorandum Shri Aga is interested in this resolution with regard to Item No
setting out the terms of appointment of Shri Gupta his re-appointment. Save and except the above, none Name of Shri A B Parekh Shri N K Parekh Shri Bharat Puri Shri A N Parekh Shri Debabrata Shri Sanjeev Aga
u/s 190 of the Act. of the other Directors, Key Managerial Personnel of the Director Gupta
Except Shri Debabrata Gupta, none of the other Company and their relatives are, in any way, concerned
Directors or Key Managerial Personnel of the Company or interested, financially or otherwise, in this resolution.
Age 62 years 82 years 59 years 48 years 57 years 68 years
and their relatives are interested or concerned, This statement may also be regarded as an appropriate
financially or otherwise, in this resolution. disclosure under the Act and the Listing Regulations. Date of first 26/06/1985 28/07/1969 28/05/2008 01/07/2005 01/03/2020 29/07/2011
appointment
The Board recommends this resolution for approval by The Board recommends the Special Resolution, as set on the Board
the Members. out in Item No. 9 of the Notice, for approval by the
Members. Qualification B.Chem (Engg.), B.Sc., MBA from the B. S. Chem. Alumni of IIT Graduate in
Item No. 9 M.B.A (USA) B.Sc (Tech), Indian Institute Engg. (U.S.A) Kharagpur Physics from
Shri Sanjeev Aga (DIN: 00022065) was appointed as Item No. 10 M.S. Chem. of Management, St. Stephen’s
an Independent Director of the Company and he holds The Board, on the recommendation of Audit Committee Engg. (USA) Ahmedabad College and Post
office as an Independent Director of the Company up has approved the appointment and remuneration of an Graduate from the
to the conclusion of 51st AGM. amount not exceeding 1,73,500/- (Rupees One Lakh Indian Institute of
Seventy Three Thousand Five Hundred Only), Management,
Shri Aga has been associated with the Company Kolkata
since 2011. Considering the expertise and rich plus applicable taxes, for the financial year ending
experience of Shri Aga and his valuable contributions 31st March 2021 payable to the Cost Auditor Experience For details, For details, please refer to the Explanatory statement to the AGM Notice.
to the Company, the Nomination and Remuneration M/s. V J Talati & Co., Cost Accountants to conduct (including please refer to
Committee and the Board, at their meetings held on the audit of the cost records of the Company for expertise the Corporate
17th June 2020, have recommended the re-appointment the aforesaid financial year. In accordance with the in specific Governance
provisions of Section 148 of the Act and the Companies functional Report
of Shri Sanjeev Aga as an Independent Director for
(Audit and Auditors) Rules, 2014, the remuneration area)/ Brief
a second consecutive term from the conclusion of the
payable to the Cost Auditor, as recommended by the Resume
51st AGM upto 31st March 2025.
Audit Committee and approved by the Board, has to Terms and Whole-time Non- Executive Managing Whole-time Whole-time Independent
The Board, based on the performance evaluation be ratified by the Members of the Company. Conditions of Director liable to Director liable to Director not Director liable to Director Director
and as per the recommendation of the Nomination
Accordingly, consent of the Members is sought appointment/ retire by rotation retire by rotation liable to retire retire by rotation designated for second
and Remuneration Committee, considers that, given re-appointment by rotation as Director- consecutive term
his background, experience and contributions made for passing an Ordinary Resolution, as set out in
the Item No. 10 of the Notice, for ratification of the Operations of 5 years up to
by him during his tenure, the continued association liable to retire 31st March 2025
of Shri Aga would be beneficial to the Company and remuneration payable to the Cost Auditor for the
financial year ending 31st March 2021. by rotation
it is desirable to continue to avail his services as an
Independent Director. Accordingly, it is proposed to None of the Directors, Key Managerial Personnel of the Remuneration For details, please refer to the Corporate Governance Report.
re-appoint Shri Aga as an Independent Director of the Company and their relatives are in any way concerned last drawn
Company, not liable to retire by rotation, for a second or interested, financially or otherwise in the resolution. (FY 2019-20)
consecutive term commencing from the conclusion
The Board recommends the resolution for approval
of 51st AGM up to 31st March 2025 on the Board of the
by the Members. Remuneration As approved by As per As per the As per the As per the As per
Company.
proposed to the Members at Remuneration resolution at resolution at resolution at Remuneration
Shri Aga is not disqualified from being appointed be paid the Annual General Policy Item No. 5 of Item No. 6 of Item No. 8 of Policy
as a Director in terms of Section 164 of the Act BY ORDER OF THE BOARD OF DIRECTORS Meeting held on the Notice the Notice the Notice
and has given his consent to act as a Director. The 30th August 2018 convening this convening this convening this
Company has also received declaration from Shri Aga Meeting read Meeting read Meeting read
stating that he meets the criteria of independence as Place : Mumbai PUNEET BANSAL with explanatory with explanatory with explanatory
prescribed both under Section 149(6) of the Act and Date : 17th June 2020 COMPANY SECRETARY statement statement statement
under Regulation 16(1)(b) of the Listing Regulations. Registered Office: thereto thereto thereto
In the opinion of the Board, Shri Aga fulfils the Regent Chambers, 7th floor, Other 1. Vinyl Chemicals 1. Vinyl 1. Tata Consumer 1. Nina Percept None 1. UFO Moviez
conditions for appointment as an Independent Director Jamnalal Bajaj Marg, Companies (India) Ltd. Chemicals Products Ltd. Pvt. Ltd. India Ltd.
as specified in the Act and the Listing Regulations and 208, Nariman Point, in which he (India) Ltd. (formerly (Deemed
2. Fevicol 2. Mahindra
he is independent of the management. Mumbai 400 021. is a Director known as Public
Company Ltd. 2. Fevicol Holidays &
Tel : 91 22 2835 7000 excluding Tata Global Company) Resorts India
Details of Shri Aga are provided in the “Annexure” to 3. Parekh Company Ltd.
Fax : 91 22 2821 6007 Section 8 Beverages Ltd.) Ltd.
the Notice. He shall be paid remuneration by way of E-mail : [email protected] Marketing Ltd. 3. Parekh
companies
fee for attending meetings of the Board or Committees Website : www.pidilite.com 4. Building Marketing Ltd. 2. ICA Pidilite 3. Larsen & Toubro
and Private Pvt. Ltd.
thereof or for any other purpose whatsoever as may Envelope 4. Kalva Infotech Ltd.
CIN : L24100MH1969PLC014336 Companies (Deemed Public
be decided by the Board, reimbursement of expenses Systems India Marketing and 4. Larsen & Toubro
Company)
Ltd. Services Ltd. Ltd.
12 13
Resolution/ 3 4 5 6 7&8 9
Item No
Name of Shri A B Parekh Shri N K Parekh Shri Bharat Puri Shri A N Parekh Shri Debabrata Shri Sanjeev Aga
Director Gupta
Chairperson/ For details, please refer to the Corporate Governance Report.
Membership of
the Statutory
Committee(s)
of Board of
Directors of the
Company
Chairperson/ None 1. Vinyl 1. Tata Consumer 1. Nina Percept None 1. UFO Moviez
Membership Chemicals Products Ltd. Pvt. Ltd. India Ltd.
of the (India) Ltd. (formerly Member of Chairman of
Committee(s) Chairman of known as Committees: Committee:
of Other Committee: Tata Global
Boards Beverages Ltd.) • Audit • Audit Committee
excluding • Corporate Committee Member of
Social Chairman of
Section 8 Committee: • Nomination & Committee:
companies Responsibility Remuneration
Committee • Risk • Nomination and
and Private Committee Remuneration
Companies Member of Management
Committee Committee
Committees:
Member of 2. Mahindra
• Nomination Holidays &
and Committees:
Resorts India Ltd.
Remuneration • Audit
Committee Committee Member of
Committees:
• Stakeholders • Nomination &
Relationship Remuneration • Audit Committee
Committee Committee • Risk
2. Parekh 2. ICA Pidilite Pvt. Management
Marketing Ltd. Ltd. Committee
Chairman of Member of 3. Larsen &

Committee: Committee: Toubro Ltd.
• Corporate • Nomination & Member of

Social Remuneration Committees:
Responsibility Committee • Audit Committee
Committee • Risk
Member of Management
Committee: Committee
• Nomination
and
Remuneration
Committee
Number of For details, please refer to the Corporate Governance Report.
Meetings of the
Board attended
during the year
Shareholding in 4,74,33,489 5,42,73,688 3,10,000 Equity 30,76,918 Equity Nil 798 Equity Shares
the Company Equity Shares Equity Shares Shares Shares
as on 31st March
2020
Relationship Related to Related to None Related to None None
with other Shri M B Parekh, Shri A N Parekh, Shri N K Parekh,
Directors, Executive Whole Time Director of the
Manager or Chairman of the Director of the Company
Key Managerial Company Company
Personnel,
if any
14

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BUILDING

We dedicate this Report to our

Adapting to new ways of working HELPING HANDS FOR

Mr. Ravi Kumar

NOT TRULY INSPIRING : COVID

Our Champions & Warriors

I joined Pidilite in August 2019 as a TSI. In my 6-year

PIDILITE ANNUAL REPORT 2019-20

M B Parekh A N Parekh Uday Khanna

N K Parekh Debabrata Gupta Meera Shankar

44 Social & Community Services Initiatives

PIDILITE ANNUAL REPORT 2019-20

Many new multimedia brand

over 10.5 crore views on

PIDILITE ANNUAL REPORT 2019-20

Fevikwik launched a new Pidilite Specialty Chemicals

‘Kabaadiwalli’ and ‘Gappuji’.

PIDILITE ANNUAL REPORT 2019-20

Roff Powerflex is a high

by way of being a coloured

PIDILITE ANNUAL REPORT 2019-20

India Business Leader EFFIES DOD (Drivers of Digital)

PIDILITE RECEIVING THE IBLA AWARD

PIDILITE ANNUAL REPORT 2019-20

Fevicryl Humsafar our first Fevicreate participated in

It offers perks like gifts showstopper and was

PIDILITE ANNUAL REPORT 2019-20

6,290 | 4.0% 1,485 | 14.4% 1,847 | (5.8)% 4,414 | 6.7%

PIDILITE ANNUAL REPORT 2019-20

Current Assets (` in crores) Total Debt (` in crores) Share Capital (` in crores)

Current Ratio Debt Equity Ratio

19-20 1,501 19-20 1,496 31st March 2016

188.8 23.3 Base Value : 31st March 2016 =1

BSE Sensex (Times)

Interest Cover (Times) PBT as % to Net Sales

24 * PBIT excludes exceptional items * PBT excludes exceptional items

PIDILITE ANNUAL REPORT 2019-20

24.4% intangible assets and dividend

* Exceptional item represents

Project amounting to ` 55 crores in

PIDILITE ANNUAL REPORT 2019-20

79.9% 19.2% of sales of the Company and

1.9% Art & Craft Materials etc.

8.1% sale of Speciality Acetates, raw

Adhesives & Sealants category of the sales of the Company

and tapes. This category

PIDILITE ANNUAL REPORT 2019-20

PIDILITE ANNUAL REPORT 2019-20

grown from ` 2,650 crores as Report Analysis Report describing

PIDILITE ANNUAL REPORT 2019-20

I GAAP IND AS I GAAP IND AS

Operating Results Funds Flow

Fixed Assets ** Gross Gearing % 20.1 16.1 3.4 0.4 0.2 - - - - -

PIDILITE ANNUAL REPORT 2019-20

Exceptional Items 59.28 - PBT (` in crores) PBT (Growth %)

Current Year’s Tax (368.65) (385.56)

Profit After Current Year’s Tax 1,068.30 990.89

Deferred Tax 33.32 (11.45)

Profit After Tax 1,101.62 979.44