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Notes to Accounts of Pidilite Industries Ltd.

Mar 31, 2015

Corporate information

Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and industrial specialty chemicals in India. The equity shares of the Company are listed on BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).

2 Contingent Liabilities and Commitments

As at 31st As at 31st March 2015 March 2014

A) Contingent liabilities not provided for:

1 Claims against the Company not acknowledged as debts comprise of:

a) Income Tax demand against the Company not 133.26 43.57 provided for and relating to issues of deduction and allowances in respect of which the Company is in appeal

b) Excise Duty claims disputed by the Company relating to issues of classifications 25.34 5.57

c) Sales Tax claims disputed by the Company relating to issues of declaration forms and 662.68 238.63 classifications

d) Other Matters (relating to disputed electricity duty, Gram Panchayat Tax, 31.58 25.59 open access charges, etc.)

2 a) Guarantees given by Banks in favour of Government and others 201.43 221.74

b) Guarantees given by Company* Pidilite USA Inc. 375.66 360.30

Pulvitec do Brasil Industria e Comercio de Colase Adesivos Ltda 150.27 144.12

Pidilite Bamco Ltd 97.95 94.00

Jupiter Chemicals (LLC) 90.33 86.33

Pidilite Industries Egypt SAE - 48.04

Bamco Supply and Services Ltd 19.24 18.47

TOTAL 733.45 751.26

Guarantee given for business purpose

B) Commitments:

a) Estimated amount of contracts, net of advances, remaining to be executed on capital account 435.57 351.67 and not provided for

b) Other Commitments - Non Cancellable Operating Leases (Refer Note 48)

33 The net amount of exchange differences (credited)/ debited to Statement of Profit and Loss 24.61 51.26

3 Disclosure as per clause 32 of the listing agreements with the Stock Exchanges

a) Loans and Advances in the nature of loans given to subsidiaries, associates, firms/ companies in which directors are interested:

3 Segment information

Business Segment: The Company has identified business segments as its primary segment and geographical segments as its secondary segment. Business segments are primarily: Consumer & Bazaar Products, Industrial Products and Others. This segmentation is based around customers. Consumer & Bazaar Products consist of mainly Adhesives, Sealants, Art Materials and Construction Chemicals. Industrial Products consist of Organic Pigments, Industrial Resins and Industrial Adhesives. Others largely comprises of Speciality Acetates. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment, manpower efforts, etc. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Geographical segments of the Company are India and Other Countries. Segment revenues are allocated based on the location of the customer.

Related Party Disclosures as required by AS-18, "Related Party Disclosure" are given below:

(i) Relationships:

a. Parekh Marketing Ltd Significant Influence

b. Vinyl Chemicals (India) Ltd Substantial Interest in Voting Power (Associate)

c. Kalva Marketing and Services Ltd Significant Influence

d. Nitin Enterprises Subsidiary

e. Fevicol Company Ltd Subsidiary

f. Bhimad Commercial Company Pvt Ltd Subsidiary

g. Madhumala Traders Pvt Ltd Subsidiary

h. Pagel Concrete Technologies Pvt Ltd Subsidiary

i. Building Envelope Systems India Ltd Subsidiary

j. Percept Waterproofing Services Ltd Subsidiary

k. Hybrid Coatings Subsidiary

l. Nina Waterproofing Systems Private Limited Subsidiary

m. Pidilite International Pte Ltd Subsidiary

n. Pidilite Middle East Ltd Subsidiary

o. Pulvitec do Brasil Industria e Comercio de Colas Subsidiary

e Adesivos Ltda

p. Pidilite USA Inc Subsidiary

q. Jupiter Chemicals (LLC) Subsidiary

r. PT Pidilite Indonesia Subsidiary

s. Pidilite Speciality Chemicals Bangladesh Pvt Ltd Subsidiary

t. Pidilite Innovation Centre Pte Ltd Subsidiary

u. Pidilite Industries Egypt SAE Subsidiary

v. Pidilite Bamco Ltd Subsidiary

w. Bamco Supply and Services Ltd Subsidiary

x. PIL Trading (Egypt) Company Subsidiary

y. Pidilite Industries Trading (Shanghai) Co Ltd Subsidiary

z. Pidilite Chemical PLC Subsidiary

(ii) Key Management Personnel:

a. Shri M B Parekh Executive Chairman and Managing Director*

b. Shri N K Parekh Joint Managing Director**

c. Shri A B Parekh Whole Time Director

d. Shri A N Parekh Whole Time Director

e. Shri R Sreeram (upto 7th November, 2014) Whole Time Director

f. Shri J L Shah (w.e.f. 4th November, 2014 upto 19th May, 2015) Whole Time Director

* W.e.f. 10th April, 2015, Shri Bharat Puri is appointed as the Managing Director of the Company and Shri M B Parekh ceased to be the Managing Director of the Company but continues as a Whole Time Director and as the Executive Chairman of the Company.

** W.e.f. 1st April, 2015, Shri N K Parekh cease to be the Joint Managing Director of the Company. He has been appointed as Non-Executive Vice Chairman of the Company effective 1st April, 2015.

Employee Benefits

The Company has classified various employee benefits as under:

(A) Defined Contribution Plans

(a) Provident Fund

(b) Superannuation Fund

(c) State Defined Contribution Plans

- Employers' Contribution to Employees' State Insurance

- Employers' Contribution to Employees' Pension Scheme 1995

The Provident Fund and the State Defined Contribution Plans are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the LIC of India as applicable for all eligible employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

The Company has recognised the following amounts in the Statement of Profit and Loss:

(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 and other relevant factors.

Employee Stock Option Scheme

a) In the Annual General Meeting of the Company held on 24th July, 2012, the shareholders approved the issue of 5,076,486 equity shares under the Scheme titled "Employee Stock Option Scheme - 2012" (ESOS 2012). At the meeting of the Board of Directors of the Company held on 28th May, 2013, the Board approved Employees Stock Option Scheme covering 300,000 Stock Options, in terms of the regulations of the Securities and Exchange Board of India.

The ESOS-2012 allows the issue of options to employees of the Company. Each option comprises one underlying equity share. The HR & Remuneration Committee of the Company at its meeting held on 29th October, 2013 has granted 49,000 Stock Options pursuant to ESOS-2012 to the eligible employees of the Company. The exercise price of each option shall be Rs. 1/- per equity share. The options are granted, vesting in two equal installments over a period of two years from the date of the grant in a manner as specified in the Scheme. Options may be exercised within 5 years from the date of vesting.

The difference between the fair price of the share underlying the options granted on the date of grant of option and the exercise price of the option (being the intrinsic value of the option) representing Stock compensation expense is expensed over the vesting period.

Operating Lease

a) Operating lease payment recognised in Statement of Profit and Loss under the head 'Rent' in Other Expenses amounting to 247.47 million ( 205.91 million) (Refer Note 30)

b) General description of the leasing arrangement:

i) Leased Assets: Godowns, Company Flat, Office space, etc.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice in writing.

The Company has entered into operating lease arrangements for certain facilities. The lease is non-cancellable for a period of 11 months to 5 years and may be renewed for a further period based on mutual agreement of the parties.

4 As per the requirement of the provisions of Schedule II of the Companies Act, 2013 (the "Act"), the Management has decided to adopt the useful lives as suggested in Part C of Schedule II of the Act with effect from 1st April, 2014 for all its fixed assets. Further, assets individually costing X 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets. The details of previously applied and revised useful life are as follows:

Pursuant to the transition provisions prescribed in Schedule II of the Companies Act, 2013, the Company has fully depreciated the carrying value of assets net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of X 133.93 million (net of deferred tax of X 69.17 million) against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

The depreciation expense in the Statement of Profit and Loss for the year is higher by X 199 million consequent to the change in the useful life of the assets.

5 In the opinion of the Management, all assets other than Fixed Assets and Non- Current investments have a realisable value in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

6 In respect of Corporate Social Responsibility activities, gross amount required to be spent by the Company during the year was X 113.25 million and the Company has paid / spent Rs. 114.39 million.

7 During the year, the Company has acquired, on a slump sale basis, the adhesive business of Bluecoat Private Limited. Also, with its wholly owned subsidiary Pidilite International Pte Ltd., the Company has incorporated a subsidiary named "Pidilite Chemical PLC" in Ethiopia for manufacture of adhesives, mastics, paints, varnishes or similar coatings, printing, writing and painting inks, etc.

The Company has also acquired a subsidiary named "Nina Waterproofing Systems Private Limited" having 70% holding in its Share Capital. The said subsidiary company is engaged in the business of supply and installation of waterproofing systems, including but not limited to waterproofing products or thermal insulation systems for construction projects, infrastructure projects.

8 Figures in brackets indicate previous year's figures.

9 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/ disclosure.

Notes:

1. The above Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Accounting Standard 3 (AS-3), "Cash Flow Statement".

2. Cash and Cash Equivalents comprise cash on hand, cheques on hand, Current Accounts and EEFC Accounts with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition) that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

3. Balance with banks in Current Account includes the balances having restriction on repatriation amounting to Rs. 6.06 million (7 6.86 million).

4. In respect of Corporate Social Responsibility activities, the Company has paid / spent Rs. 114.39 million.

5. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/ disclosure.


Mar 31, 2014

1 Corporate information

Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and industrial specialty chemicals in India. The equity shares of the Company are listed on BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).

(Rs. in million)

2 Contingent Liabilities and Commitments

As at As at 31st March 31st March 2014 2013

A) Contingent liabilities not provided for:

1 Claims against the Company not acknowledged as debts comprise of:

a) Income Tax demand against the Company not provided for and relating to issues of deduction 43.57 36.94 and allowances in respect of which the Company is in appeal

b) Excise Duty claims disputed by the Company relating to issues of classifications 5.57 2.64

c) Sales Tax claims disputed by the Company relating to issues of declaration forms and 238.63 359.95 classifications

d) Other Matters (relating to disputed electricity duty, Gram Panchayat Tax, 25.59 5.26 open access charges, etc.)

2 a) Guarantees given by Banks in favour of Government and others 221.74 278.52

b) Guarantees given by Company 751.26 1,004.21

B) Commitments:

a) Estimated amount of contracts, net of advances, remaining to be executed on capital account 351.67 374.76 and not provided for

b) Other Commitments - Non Cancellable Operating Leases (Refer Note 49)

33 The net amount of exchange differences (credited) / debited to Statement of Profit and Loss 51.26 4.60

4 Pursuant to the notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs amending the Accounting Standard 11, the Company has exercised the option as per Para 46A inserted in the Standard for all long term monetary assets and liabilities. Consequently, an amount ofRs. 55.52 million (without considering future tax benefit of Rs. 18.01 million) was carried forward in the Foreign Exchange Monetary Item Translation Difference Account as on 31st March, 2012. This amount has been amortised over the period of the monetary liabilities i.e. up to 7th December, 2012. Further it has credited the gain off 8 million to the carrying cost of the fixed assets for above referred period.

5 Segment information

Business Segment: The Company has identified business segments as its primary segment and geographical segments as its secondary segment. Business segments are primarily: Consumer & Bazaar Products, Industrial Products and Others. This segmentation is based around customers. Consumer & Bazaar Products consist of mainly Adhesives, Sealants, Art Materials and Construction Chemicals. Industrial Products consists of Organic Pigments, Industrial Resins and Industrial Adhesives. Others consist of VAM manufacturing unit of Vinyl Chemicals (India) Ltd demerged into the Company wef 1st April, 2007. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment, manpower efforts, etc. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Geographical segments of the Company are India and Other Countries. Segment revenues are allocated based on the location of the customer.

6 Employee Benefits

The Company has classified various employee benefits as under: (A) Defined Contribution Plans

(a) Provident Fund

(b) Superannuation Fund

(c) State Defined Contribution Plans

- Employers'' Contribution to Employees'' State Insurance

- Employers'' Contribution to Employees'' Pension Scheme 1995

The Provident Fund and the State Defined Contribution Plans are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the LIC of India as applicable for all eligible employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

7 Employee Stock Option Scheme

a) In the Annual General Meeting of the Company held on 24th July, 2012, the shareholders approved the issue of 5,076,486 equity shares under the Scheme titled "Employee Stock Option Scheme-2012 " (ESOS 2012). At the meeting of the Board of Directors of the Company held on 28th May, 2013, the Board approved Employees Stock Option Scheme covering 300,000 stock options, in terms of the regulations of the Securities and Exchange Board of India.

The ESOS-2012 allows the issue of options to employees of the Company. Each option comprise one underlying equity share. The HR & Remuneration Committee of the Company at its meeting held on 29th October, 2013 has granted 49,000 Stock Options pursuant to ESOS-2012 to the eligible employees of the Company. The exercise price of each option shall be Rs. 1/- per equity share. The options granted vesting in two equal installments over a period of two years from the date of the grant in a manner as specified in the Scheme. Options may be exercised within 5 years from the date of vesting.

The difference between the fair price of the share underlying the options granted on the date of grant of option and the exercise price of the option (being the intrinsic value of the option) representing Stock compensation expense is expensed over the vesting period.

8 Operating Lease

a) Operating lease payment recognised in Statement of Profit and Loss amounting to f 205.91 million (Rs. 186.30 million)

b) General description of the leasing arrangement:

i) Leased Assets: Godowns, Company Flat, Office Space, etc.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice in writing.

The Company has entered into operating lease arrangements for certain facilities. The lease is non-cancellable for a period of 11 months to 5 years and may be renewed for a further period based on mutual agreement of the parties.

9 In the opinion of the Management, all assets other than Fixed Assets and Non- Current investments have a realisable value in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

10 During the year, the Company has incorporated a Subsidiary Company named "Percept Waterproofing Services Limited" for the purpose of carrying on business of waterproofing application and consultancy services.

11 During the year the Company has declared Voluntary Retirement Scheme for its employees at Panvel, Kamothe & Ta loja units .

12 Figures in brackets indicate previous year''s figures.

13 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2013

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements are prepared under the historical cost convention, on the basis of a going concern and as per applicable Indian Accounting Standards. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis (except as otherwise stated).

1 Pursuant to the notification dated 29th December 2011 issued by the Ministry of Corporate Affairs amending the Accounting Standard 11, the Company has exercised the option as per Para 46A inserted in the Standard for all long term monetary assets and liabilities. Consequently, an amount of Rs. 55.52 million (without considering future tax benefit of 18.01 million) is carried forward in the Foreign Exchange Monetary Item Translation Difference Account as on 31st March 2012. This amount has been amortized over the period of the monetary liabilities i.e. up to 7th December 2012. Further it has credited the gain of Rs. 8 million to the carrying cost of the fixed assets for above referred period.

1a) Segment information

Business Segment: The Company is operating into three business segments: Consumer & Bazaar Products, Industrial Products and Others. This segmentation is based around customers. Consumer & Bazaar Products consist of mainly Adhesives, Sealants, Art Mate- rials and Construction Chemicals. Industrial Products consists of Organic Pigments, Industrial Resins and Industrial Adhesives. Others consist of VAM manufacturing unit of Vinyl Chemicals (India) Ltd demerged into the Company wef 1st April 2007.

2 Earnings Per Share (EPS)

The following reflects the Profit and Share data used in the Basic and Diluted EPS computations:

3 Employee Benefits

The Company has classified various employee benefits as under:

(A) Defined Contribution Plans

(a) Provident Fund

(b) Superannuation Fund

(c) State Defined Contribution Plans

- Employers'' Contribution to Employees'' State Insurance

- Employers'' Contribution to Employees'' Pension Scheme 1995

The Provident Fund and the State Defined Contribution Plans are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

4 Operating Lease

a) Operating lease payment recognised in Statement of Profit & Loss amounting to Rs. 186.30 million ( Rs. 150.10 million)

b) General description of the leasing arrangement:

i) Leased Assets: Godowns, Company Flat, Office space, etc.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice in writing.

5 In the opinion of the Management, all assets other than Fixed Assets and Non-Current investments have a realisable value in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet Working Capital Loan from Banks (Cash Credit Accounts) are secured by way of first charge on the stock of Raw Materials, Finished Goods, Packing Material, Stock in Process, Bills Receivable and Book Debts and by way of second charge on the entire Plant and Machinery of the Company including Stores and Spares. Further, these loans are secured by way of an Equitable Mortgage on the Land and Building of the Company''s unit at Kondivita, Mumbai.

6 Figures in bracket indicate previous year''s figures.

7 Previous year''s figures have been regrouped / rearranged wherever necessary.


Mar 31, 2012

(Rs. in million)

1 Contingent Liabilities

As at As at 31st March 31st March 2012 2011

Contingent liabilities not provided for:

Guarantees given by Banks in favour of Government and others 75.79 53.93

i. Guarantees given by Company 899.20 596.65

ii. Disputed liabilities in respect of Income Tax, Sales Tax, Central Excise and Customs (under appeal) 363.53 542.50

iv Claims against the Company not acknowledged as debts. 62.68 82.17

2 Pursuant to the notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs amending the Accounting Standard 11, the Company has exercised the option as per Para 46A inserted in the Standard for all long term monetary assets and liabilities. Consequently, an amount of X 55.52 million (without considering future tax benefit of X 18.01 million) is carried forward in the Foreign Exchange Monetary Item Translation Difference Account as on 31st March 2012. This amount is to be amortized over the period of the monetary liabilities i.e. up to 7th December 2012.

Further it has debited the loss of Rs. 74.04 million to the carrying cost of the depreciable asset for the period ending 31st March 2012.

3 Segment information

Business Segment:

The Company is operating into three business segments: Consumer & Bazaar Products, Industrial Products and Others. This segmentation is based around customers.

Consumer & Bazaar Products consist of mainly Adhesives, Sealants, Art Materials and Construction Chemicals.

Industrial Products consists of Organic Pigments, Industrial Resins and Industrial Adhesives.

Others consist of VAM manufacturing unit of Vinyl Chemicals (India) Ltd demerged into the Company wef 1st April 2007.

Operating Lease

a) Operating lease payment recognised in Statement of Profit & Loss Account amounting to Rs. 150.10 million (Rs. 135.93 million)

b) General description of the leasing arrangement:

) Leased Assets : Godowns, Company Flat, Office space, etc.

i) Future lease rentals are determined on the basis of agreed terms.

ii) At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice in writing.

4 Figures in bracket indicate previous year's figures.

5 Previous year's figures have been regrouped / rearranged wherever necessary.


Mar 31, 2011

1. The Company did not have at any time during the year amount due to small and medium enterprises (SME) which is outstanding for more than 45 days. Further no interest is paid / payable to such SME creditors. The above information and that given in Schedule 8 "Current Liabilities and Provisions"regarding small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

(Rs in million)

As at As at

31st March 31st March

2011 2010

2. Contingent liabilities not provided for:

i. Guarantees given by Banks in favour of Government and others 53.93 48.98

ii. Guarantees given by Company 596.65 647.00

iii Disputed liabilities in respect of Income Tax, Sales Tax, Central 542.50 323.80 Excise and Customs (under appeal)

iv Claims against the company not acknowledged as debts. 82.17 81.44

3. The Company had, in March 2009, exercised the option permitted by the Central Government under Notification No G.S.R 225 ( E) to treat foreign exchange difference relating to assets as adjustments in the carrying value of such depreciable assets and amortise other differences of a specified nature over the term of the relative item. Accordingly for the period ended 31st March 2011, the Company has credited the gam of Rs 1.99 million to the carrying cost of the depreciable assets and credited Rs 8,05 million to Foreign Currency Monetary Item Translation Account. Out of the said Foreign Currency Monetary Item Translation Account Rs 1.07 million has been amortised in the current year ended 31- March 2011.

Notes:

SEGMENT INFORMATION Business Segment

The Company is operating into three business segments: Consumer & Bazaar Products, Industrial Products and Others. This segmentation is based around customers.

Consumer & Bazaar Products consist of mainly Adhesives, Sealants, Art Materials and Construction Chemicals.

Industrial Products consists of Organic Pigments, Industrial Resins and Industrial Adhesives.

Others consist of VAM manufacturing unit of Vinyl Chemicals (India) Ltd demerged into the Company wef 1st April 2007.

Geographical Segment

For the purpose of geographical segment the sales are divided into two segments: Sales within India and Sales to other countries.

ii Key Management Personnel:

Sarva Shri M B Parekh - Managing Director,

N K Parekh - Jr Managing Director,

A B Parekh and A N Parekh - Whole Time Directors,

Shri J L Shah - Whole Time Director.

iii Other Directors:

Sarva Shri B K Parekh and S K Parekh

4. Research & development Expenditure

2010-11 2009-10

Capital expenditure included in fixed assets 4.54 5.34

Revenue expenditure charged to Profit & Loss account 105.96 91.64

Total 110.50 96.98

[Refer Notes 1(v) of Schedule 12]

5. Figures in bracket indicate previous years figures.

6. Previous years figures have been regrouped / rearranged wherever necessary.


Mar 31, 2010

(Rs in million)

As at As at 31st March 31st March 2010 2009

1. Contingent liabilities not provided for:

Guarantees given by Banks in favour of Government and others 48.98 56.02

i. Guarantees given by Company 647.00 565.30

ii. Disputed liabilities in respect of Income Tax, Sales Tax, 323.80 112.25 Central Excise and Customs (under appeal)

v Claims against the company not acknowledged as debts. 81.44 76.07

2. Related Party Disclosures

Related Party Disclosures as required by AS-18, “Related Party Disclosures”, are given below:

i Relationships:

a. Parekh Marketing Ltd. Significant Influence

b. Vinyl Chemicals (India) Ltd. Substantial Interest in Voting Power (Associate)

c. Kalva Marketing and Services Ltd. Significant Influence

d. Nitin Enterprises Controlling Interest

e. Fevicol Company Ltd. 100% Subsidiary

f. Bhimad Commercial Co Pvt. Ltd. 100% Subsidiary

g. Madhumala Traders Pvt. Ltd. 100% Subsidiary

h. Pagel Concrete Technologies Pvt. Ltd. 75% Subsidiary

Pidilite International Pte Ltd. 100% Subsidiary

j. Pidilite Middle East Ltd. 100% Subsidiary

k. Pulvitec do Brasil Industria e Comercio de Colas e

Adesivos Ltda 100% Subsidiary

Pidilite USA Inc. 100% Subsidiary

m. Jupiter Chemicals (LLC) 100% Subsidiary of wholly owned subsidiary

n. P.T. Pidilite Indonesia 100% Subsidiary of wholly owned subsidiary

o. Pidilite Speciality Chemicals Bangladesh Pvt. Ltd. 100% Subsidiary of wholly owned subsidiary

p. Pidilite Innovation Centre Pte Ltd. 100% Subsidiary of wholly owned subsidiary

q. Pidilite Industries Egypt - SAE 100% Subsidiary of wholly owned subsidiary

Pidilite Bamco Ltd. 100% Subsidiary of wholly owned subsidiary

s. Pidilite South East Asia Ltd. 100% Subsidiary of wholly owned subsidiary

t. Bamco Supply Services Ltd. 49% Subsidiary of wholly owned subsidiary and having significant influence

u. PIL Trading Egypt (LLC) 100% Subsidiary of wholly owned subsidiary

ii Key Management Personnel :

Sarva Shri M B Parekh - Managing Director, N K Parekh - Jt Managing Director, A B Parekh and A N Parekh - Wholetime Directors, Shri V S Vasan - Wholetime Director (for the period 1st April 2009 till 21st October 2009). Shri J L Shah - Wholetime Director (From 21 st October 2009)

iii Other Directors :

Sarva Shri B K Parekh, S K Parekh, R M Gandhi, N J Jhaveri, B S Mehta, R Kapoor , Y Mahajan, B Puri and D. Bhattacharya

3. The Company has classified various employee benefits as under :

(A) Defined Contribution Plans

(a) Provident Fund

(b) Superannuation Fund

(c) State Defined Contribution Plans

- Employers Contribution to Employees State Insurance

- Employers Contribution to Employees Pension Scheme 1995

The Provident Fund and the State Defined Contribution Plans are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the Life Insurance Corporation of India. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

4. Figures in bracket indicate previous year’s figures.

5. Previous year’s figures have been regrouped / rearranged wherever necessary.