BALANCE SHEET STATEMENT OF PROFIT AND LOSS

as at 31st March 2022 ( in crores) for the year ended 31st March 2022 ( in crores)
Particulars Note No. As at 31 March 2022
st
As at 31st March 2021 Particulars Note No. For the year ended For the year ended
ASSETS 31st March 2022 31st March 2021
1 Non-Current Assets
(a) Property, Plant and Equipment 4 1,290.01 1,023.38 INCOME
(b) Right of Use Assets 5 166.52 118.67
Revenue from Operations 30 8,340.17 6,216.33
(c) Capital Work-In-Progress 4 207.34 281.50
(d) Goodwill 6 86.34 86.34 Other Income 31 230.37 73.49
(e) Other Intangible Assets 6 189.43 194.17
(f) Financial Assets Total Income 8,570.54 6,289.82
(i) Investments 7 3,298.70 3,312.26
EXPENSES
(ii) Loans 10 5.02 4.82
(iii) Other Financial Assets 12 18.74 15.15 Cost of Materials Consumed 32 4,174.20 2,469.53
(g) Income Tax Assets (net) 16 125.18 86.98
(h) Other Non-Current Assets 17 41.65 79.37 Purchases of Stock-in-Trade 637.16 453.99
Total Non-Current Assets 5,428.93 5,202.64
Changes in inventories of Finished Goods, 33 (214.02) (89.77)
2 Current Assets Work-in-Progress and Stock-in-Trade
(a) Inventories 15 1,372.70 975.94
(b) Financial Assets Employee Benefits Expense 34 905.19 787.75
(i) Investments 8 147.31 169.35
Finance Costs 35 26.42 16.99
(ii) Trade Receivables 9 1,157.61 999.09
(iii) Cash and Cash Equivalents 14A 116.49 109.81 Depreciation, Amortisation and Impairment Expense 36 175.12 147.10
(iv) Bank balances other than (iii) above 14B 2.82 2.56
(v) Loans 11 17.66 16.25 Other Expenses 37 1,238.98 1,047.15
(vi) Other Financial Assets 13 10.17 7.34
Total Expenses 6,943.05 4,832.74
(c) Other Current Assets 18 170.22 140.43
Total Current Assets 2,994.98 2,420.77 Profit before Exceptional Items and Tax 1,627.49 1,457.08
TOTAL ASSETS 8,423.91 7,623.41
EQUITY AND LIABILITIES Exceptional Items 38 - 0.45
EQUITY
Profit before Tax 1,627.49 1,456.63
(a) Equity Share Capital 19 50.83 50.82
(b) Other Equity 20 6,366.12 5,510.40 Tax Expense
Total Equity 6,416.95 5,561.22
LIABILITIES Current Tax 48 360.95 375.05
1 Non-Current Liabilities
Deferred Tax 48 (2.08) 0.12
(a) Financial Liabilities
(i) Lease Liabilities 63.72 48.79 Net Tax Expense 358.87 375.17
(ii) Other Financial Liabilities 23 19.94 13.63
(b) Provisions 25 54.69 45.02 Profit for the year 1,268.62 1,081.46
(c) Deferred Tax Liabilities (net) 27 70.73 75.86
Other Comprehensive Income
Total Non-Current Liabilities 209.08 183.30
2 Current Liabilities Items that will not be reclassified to profit or loss
(a) Financial Liabilities
(i) Borrowings 21 105.00 55.00 Remeasurement of Defined Benefit Plan 45 (12.12) (0.95)
(ii) Trade Payables 22
Income tax relating to items that will not be 48 3.05 0.24
- Total Outstanding Dues of Micro Enterprises and 58.88 67.04
reclassified to profit or loss
Small Enterprises
- Total Outstanding Dues of Creditors other than 791.88 726.78 Total Other Comprehensive Loss (9.07) (0.71)
Micro Enterprises and Small Enterprises
(iii) Lease Liabilities 25.55 18.54 Total Comprehensive Income for the year 1,259.55 1,080.75
(iv) Other Financial Liabilities 24 694.44 900.44
(b) Other Current Liabilities 28 80.32 72.66 Earnings Per Equity Share: 43
(c) Provisions 26 33.89 16.48
Basic ( ) 24.96 21.28
(d) Current Tax Liabilities (net) 29 7.92 21.95
Total Current Liabilities 1,797.88 1,878.89 Diluted ( ) 24.95 21.27

PIDILITE ANNUAL REPORT 2021-22

TOTAL LIABILITIES 2,006.96 2,062.19
TOTAL EQUITY AND LIABILITIES 8,423.91 7,623.41 See accompanying notes to the financial statements 1 to 57
See accompanying notes to the financial statements 1 to 57
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
MANISHA SHETTY MANISHA SHETTY
Company Secretary Company Secretary
Place: Mumbai Place: Mumbai Place: Mumbai Place: Mumbai 101
Date: 18th May 2022 Date: 18th May 2022 Date: 18th May 2022 Date: 18th May 2022
STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS
for the year ended 31st March 2022 for the year ended 31st March 2022
( in crores) ( in crores)
a. Equity Share Capital For the year ended For the year ended
31st March 2022 31st March 2021
Amount
A Cash Flows From Operating Activities
Balance as at 1 April 2020
st
50.81
Profit before tax 1,627.49 1,456.63
Changes in equity share capital during the year
Adjustments for:
Issue of equity shares under Employee Stock Option Plan 2016 0.01

Balance as at 31st March 2021 50.82 Finance costs 26.42 16.99

Interest income (0.58) (12.78)

Changes in equity share capital during the year
Dividend income (196.41) (2.78)
Issue of equity shares under Employee Stock Option Plan 2016 0.01
Loss on disposal of Property, Plant and Equipment 8.19 5.85
Balance as at 31st March 2022 50.83
Net gain arising on financial assets designated at FVTPL (11.19) (39.99)

b. Other Equity Allowance for Doubtful Debts and Advances (net) 0.40 3.73
Reserves and Surplus TOTAL Exceptional Item - Impairment in value of Investments - 0.45
Capital Securities Capital Cash Share General Retained
Reserve on Premium Redemption Subsidy Options Reserve Earnings Depreciation, Amortisation and Impairment Expense 175.12 147.10
Business Reserve Reserve Outstanding
Combination Account Unrealised foreign exchange loss / (gain) (net) 3.90 (1.88)

Balance as at 1st April 2020 0.34 23.21 0.50 0.95 10.89 1,335.38 3,042.74 4,414.01 Provision for Employee Benefits 14.96 7.89
Profit for the year - - - - - - 1,081.46 1,081.46
Profit on buyback of shares by subsidiary (1.11) -
Other Comprehensive Income for the year, net - - - - - - (0.71) (0.71)
of income tax Expense recognised in respect of Equity-Settled Share-Based Payments 28.09 17.28

Recognition of share-based payments - 2.83 - - 14.53 - - 17.36 Operating profits before Working Capital changes 1,675.28 1,598.49
Transferred to Securities Premium on Options - 2.83 - - (2.83) - - -
exercised during the year Movements in Working Capital:

Amortised and exercised during the year - - - - 17.40 - - 17.40 (Increase) / Decrease in Operating Assets
Lapsed during the year - - - - (0.04) - - (0.04) Trade Receivables (160.41) (200.06)
Due to Business combination (refer Note 56) (1.72) - - - - - - (1.72)
Inventories (396.76) (240.47)
Balance as at 31st March 2021 (1.38) 26.04 0.50 0.95 25.42 1,335.38 4,123.49 5,510.40
Non-Current Loans (0.20) (0.78)
Profit for the year - - - - - - 1,268.62 1,268.62
Other Comprehensive Income for the year, net - - - - - - (9.07) (9.07) Current Loans (1.41) (7.87)
of income tax
Other Non-Current Financial Assets (3.59) 0.02
Payment of dividends - - - - - - (431.93) (431.93)
Recognition of share-based payments - 20.47 - - 7.63 - - 28.10 Other Current Financial Assets (2.83) 0.89

Transferred to Securities Premium on Options - 20.47 - - (20.47) - - - Other Non-Current Non Financial Assets (20.87) (27.80)
exercised during the year
Other Current Non Financial Assets (29.79) 13.39
Amortised and exercised during the year - - - - 28.55 - - 28.55
Lapsed during the year - - - - (0.45) - - (0.45) Increase / (Decrease) in Operating Liabilities

Balance as at 31st March 2022 (1.38) 46.51 0.50 0.95 33.05 1,335.38 4,951.11 6,366.12 Trade Payables 54.91 296.34

In terms of our report attached
Other Current Financial Liabilities 49.27 121.42

PIDILITE ANNUAL REPORT 2021-22

For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Chartered Accountants Other Non-Current Financial Liabilities 6.31 6.37
N. K. JAIN BHARAT PURI M B PAREKH Other Current Non Financial Liabilities 8.90 (17.40)
Partner Managing Director Executive Chairman
DIN: 02173566 DIN: 00180955 Cash generated from Operations 1,178.81 1,542.54
MANISHA SHETTY
Company Secretary Taxes paid (net of refunds) (413.18) (342.02)
Place: Mumbai Place: Mumbai
Net Cash generated from Operating Activities [A] 765.63 1,200.52
Date: 18th May 2022 Date: 18th May 2022

103
STATEMENT OF CASH FLOWS Notes Forming Part of The Financial Statements
for the year ended 31st March 2022
( in crores)
For the year ended For the year ended 1 Corporate information
31st March 2022 31st March 2021
Pidilite Industries Limited, together with its subsidiaries are pioneers in consumer and industrial speciality chemicals in India. The
B Cash Flows from Investing Activities
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, (315.25) (323.97)
Other Intangible Assets & Capital Work-In-Progress The address of its registered office is Regent Chambers, 7th Floor, Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai 400 021.
The address of principal place of business is Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai 400 059.
Proceeds from disposal of Property, Plant and Equipment & 0.77 1.76
Other Intangible Assets
2 Significant Accounting Policies
Net Cash outflow on acquisition / Investment in Subsidiaries (359.95) (2,109.95)
2.1 Basis of accounting and preparation of financial statements
Proceeds from buyback of shares from subsidiary 11.28 -
The standalone financial statements of the Company have been prepared in accordance with the Indian Accounting
Payments to purchase Investments (30.00) (2,898.47) Standards ("Ind AS") prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Companies (Indian
Proceeds on sale of Investments 170.24 3,634.27 Accounting Standards) Rules, 2015, as amended.

(Increase) / Decrease in Bank Deposits (0.18) 1.42 The financial statements have been prepared under the historical cost convention except for the following items :
a. Certain Financial Assets / Liabilities (including derivative instruments) – at Fair value
(Increase) / Decrease in Other Bank Balances (0.08) 0.69
b. Employee Stock Options - at Fair value
Interest received 0.58 12.78
The financial statements are presented in Indian Rupees ( ) and all values are rounded to the nearest crores, except
Dividend received 196.41 2.78 otherwise indicated.
Net cash used in Investing Activities [B] (326.18) (1,678.69) 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
Net increase in Current Borrowings 50.00 55.00 combination is measured at fair value, which is calculated as the sum of the acquisition-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
Proceeds from issue of Equity shares of the Company 0.01 0.01
interest issued by the Company in exchange of control of acquiree. Acquisition-related costs are recognised in statement
Payment of Lease Liabilities (31.26) (24.08) of profit and loss as incurred.

Dividends paid on Equity Shares (431.85) (0.69) 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 measured at its acquisition-date fair value and
Interest paid (19.67) (11.53)
included as a part of the consideration transferred in a business combination. Changes in the fair value of the contingent
Net cash (used in) / generated from Financing Activities [C] (432.77) 18.71 consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding changes
against goodwill or capital reserve, as the case maybe. Measurement period adjustments are adjustments that arise from
Net increase / (decrease) in Cash and Cash Equivalents [A+B+C] 6.68 (459.46)
additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition
Cash and Cash Equivalents at the beginning of the year 109.81 564.17 date) about facts and circumstances that existed at the acquisition date. Contingent consideration that is classified as
Unrealised loss/gain on foreign currency cash and cash equivalents (0.05) 0.18 an asset or a liability is subsequently (after the measurement period) remeasured at subsequent reporting dates with the
corresponding gain or loss being recognised in Statement of Profit and Loss.
Cash and Cash Equivalents at the beginning of the year 109.76 564.35
In case of business combinations involving entities under common control, the above policy does not apply. Business
Cash and Cash Equivalents at the end of the year (refer Note 14A) 116.49 109.81 combinations involving entities under common control are accounted for using the pooling of interests method. The
Unrealised loss on foreign currency cash and cash equivalents (0.05) (0.05) 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 to harmonise accounting policies. Retained earnings appearing in the financial
Acquisition under Business Combination (refer Note 56) - (4.87)
statements of the transferor is aggregated with the corresponding balance appearing in the financial statements of the
Cash and Cash Equivalents at the end of the year 116.44 104.89 transferee. Identity of the reserves appearing in the financial statements of the transferor is preserved and appears in the
financial statements of the transferee in the same form. Any excess or shortfall of consideration paid over share capital and
Net increase / (decrease) in Cash and Cash Equivalents 6.68 (459.46)
reserves of transferor entity is recognised as capital reserve under equity.
Notes:
2.3 Goodwill
The above Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Indian Accounting Standard (Ind AS 7) -
Statement of Cash Flows. 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 on an acquisition of a business is carried at

PIDILITE ANNUAL REPORT 2021-22

In terms of our report attached cost as established at the date of acquisition of the business less accumulated impairment losses, if any.
For DELOITTE HASKINS & SELLS LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating units (or groups of
Chartered Accountants cash-generating units) that is expected to benefit from the synergies of the combination. A cash-generating unit to which
N. K. JAIN BHARAT PURI M B PAREKH goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit
Partner Managing Director Executive Chairman may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment
DIN: 02173566 DIN: 00180955
loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of
MANISHA SHETTY
Company Secretary
the unit pro-rata based on the carrying amount of each assets in the unit. Any impairment loss for goodwill is recognised
Place: Mumbai Place: Mumbai
directly in Statement of Profit and Loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
Date: 18th May 2022 Date: 18th May 2022
105