We have audited the standalone financial statements of
Pidilite Industries Limited (the “Company”), which comprise
the standalone balance sheet as at 31st March 2026, and
the standalone statement of profit and loss (including
other comprehensive income), standalone statement
of changes in equity and standalone statement of cash
flows for the year then ended 31st March 2026, and notes
to the standalone financial statements, including material
accounting policies, other explanatory information, which
includes financial information of five branches in United
Arab Emirates {upto 13th November 2025}, Egypt, Sri Lanka,
Bangladesh, and Tanzania (hereinafter referred to as
"Standalone Financial Statements").
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013 (“Act”) in the manner
so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the
state of affairs of the Company as at 31st March 2026, and its
profit and other comprehensive loss, changes in equity and
its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those SAs are further described in
the Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are
independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant
to our audit of the standalone financial statements under
the provisions of the Act and the Rules thereunder, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on the
standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements of the current period. These
matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
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Revenue Recognition -
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Variable Considerations
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See Note 30 to the standalone financial statements
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The key audit matter
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How the matter was addressed
in our audit
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Revenue is measured
net of any trade
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Our audit procedures included:
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discounts and schemes
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a) Understanding the process followed
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to customers (“variable
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by the Company to determine the
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consideration”).
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amount of accrual for variable
consideration.
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The variable consideration
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b) Evaluating the design and
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represents the portion of
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implementation and testing the
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discounts and schemes
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operating effectiveness on sample
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which are not directly
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basis, of Company’s general IT
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deducted on the invoice
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controls and key manual controls for
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and involves estimation
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variable consideration computations,
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by the Company
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variable consideration payments/
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in recognition and
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settlements and Company’s
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measurement of such
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examination over the variable
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discounts and schemes.
In addition, the value and
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consideration accruals.
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timing of promotions
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c) Performing substantive testing by
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for products varies from
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selecting samples, using statistical
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period to period, and
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sampling approach, of variable
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the activity can span
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consideration transactions recorded
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beyond the year end.
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during the year and as at period end,
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The unsettled portion of
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to reconcile the parameters used in
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the variable consideration
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the computation with the relevant
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results in discounts
and schemes due to
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source documents.
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customers as at
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d) Examining historical variable
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year end.
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consideration accrual together
with our understanding of current
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Therefore, there is a
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year developments to form
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risk of revenue being
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an expectation of the variable
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overstated due to fraud
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consideration accrual as at year end.
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through estimation of
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Comparing this expectation against
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variable consideration
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the actual variable consideration
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accruals recognised,
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accrual, completing further
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resulting from pressure
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inquiries and obtaining underlying
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the Company may feel
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documentation, on a sample basis.
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to achieve performance
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Further, we have also performed
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targets at the year end.
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retrospective examination to
evaluate the precision with which
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We identified the
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Company makes estimates.
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evaluation of accrual for
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e) Ensuring completeness of variable
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variable consideration
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consideration accrual by checking
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as a key audit matter.
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subsequent settlement (i.e.
payments and credit notes) made
after year end on a sample basis.
f) Checking completeness and
accuracy of the data used by the
Company for accrual of variable
consideration
g) Critically assessing manual journal
entries posted to revenue (variable
consideration), on a sample basis, to
identify unusual items and examined
the underlying documentation.
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Impairment of Investments in subsidiaries
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See Note 7 to the standalone financial statements
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The key audit matter
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How the matter was addressed
in our audit
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The Company has significant
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Our audit procedures included:
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investments in subsidiaries.
The carrying amount of the
investments in subsidiaries
held at cost less impairment
as at 31st March 2026 is
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a)
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Understanding the process followed
by the Company in respect of the
annual impairment analysis for
investments in subsidiaries.
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X 1,082.54 crores, net of
impairment of X 73.11 crores.
The Company has
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b)
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Evaluating the design and
implementation and testing
the operating effectiveness of
key controls placed around the
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investments in subsidiaries
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impairment assessment process of
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which are considered to be
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the recoverability of the investments
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associated with significant
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made, including the estimation
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risk in respect of valuation of
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of future cash flows forecasts,
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such investments. Changes
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the process by which they were
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in business environment
could also have a significant
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c)
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produced and discount rates used.
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impact on the valuation of
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Assessing the indicators for
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these investments. These
investments are carried at
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impairment of investments in
subsidiaries and understanding
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cost less any accumulated
impairment losses.The
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the Company’s assessment of
those indicators.
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investments are examined for
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d)
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Focussing on the sensitivity in the
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impairment at each reporting
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difference between the estimated
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date. These investments
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recoverable value and book values
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are unquoted and hence it
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of the subsidiaries, where change
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is difficult to measure the
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in assumptions could cause the
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realisable amount of these
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carrying amount to exceed its
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investments.
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estimated recoverable value.
Further, we have:
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The Company performs,
at each reporting date, an
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- Compared the carrying amount
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assessment of it investments
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of investments with the relevant
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in subsidiaries to identify any
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subsidiaries balance sheet to
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indicators of impairment.
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identify their net assets, being an
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The recoverable amount of
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approximation of their minimum
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these investments which is
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recoverable amount.
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based on the higher of the
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- For the investments where the
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value in use or fair value
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carrying amount exceeded
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less costs to sell, has been
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the net asset value, compared
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derived from Discounted
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the carrying amount of the
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Cashflow models.
These models use several
key assumptions, concerning
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e)
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investments with the estimated
recoverable value based on
discounted cash flow analysis.
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estimates of revenue growth,
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Challenging and assessing the
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near and long-term growth
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work performed by management’s
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rate, operating margins and
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external valuation expert, including
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the discount rate.
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the valuation methodology and
the key assumptions used such as
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The Company’s assessment
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estimated revenue growth, near and
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of the remaining 'value in use’
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long-term growth rate, and operating
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is judgmental because it is
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margins. We also assessed the
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based on forecast results and
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competence, capabilities and
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uncertain outcomes. Further,
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objectivity of the expert used by
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determining these estimates
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the management in the process of
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may be subject to a degree of
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evaluating impairment models.
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management bias.
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f)
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Testing data used to develop the
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In view of the significance
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estimate for completeness and
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of these investments, we
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accuracy.
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consider impairment of
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g)
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Involving valuation specialist,
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investments in subsidiaries
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where appropriate, to evaluate the
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to be a key audit matter.
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reasonability of the methodology,
approach and assumptions
used in the valuation carried out
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for determining the estimated
recoverable value of investments.
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h)
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Evaluating the adequacy of the
Company’s disclosures in the
standalone financial statements in
respect of impairment testing of
investments in subsidiaries.
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Other Information
The Company’s Management and Board of Directors
are responsible for the other information. The other
information comprises the information included in
the annual report, but does not include the financial
statements and auditor’s report thereon. The annual report
is expected to be made available to us after the date of
this auditor’s report.
Our opinion on the standalone financial statements does
not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
When we read the annual report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged with
governance and take necessary actions, as applicable
under the relevant laws and regulations.
Management's and Board of Directors' Responsibilities for
the Standalone Financial Statements
The Company’s Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the
Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the
state of affairs, profit/ loss and other comprehensive
income, changes in equity and cash flows of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards (Ind AS) specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the standalone financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the
Management and Board of Directors are responsible for
assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the Board of Directors either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing
the Company’s financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under Section
143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the company has adequate internal
financial controls with reference to financial statements in
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the Management and
Board of Directors.
• Conclude on the appropriateness of the Management
and Board of Directors use of the going concern basis
of accounting in preparation of standalone financial
statements and, based on the audit evidence obtained,
whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related
disclosures in the standalone financial statements or,
if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order,
2020 ("the Order”) issued by the Central Government of
India in terms of Section 143(11) of the Act, we give in
the "Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2 A. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books except for the matters stated in the
paragraph 2B(f) below on reporting under Rule
11(g) of the Companies (Audit and Auditors)
Rules, 2014.
c. The standalone balance sheet, the standalone
statement of profit and loss (including other
comprehensive income), the standalone
statement of changes in equity and the
standalone statement of cash flows dealt with
by this Report are in agreement with the books
of account.
d. In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified
under Section 133 of the Act.
e. On the basis of the written representations
received from the directors between 1st April 2026
to 29th April 2026 taken on record by the Board
of Directors, none of the directors is disqualified
as on 31st March 2026 from being appointed
as a director in terms of Section 164(2) of
the Act.
f. The modifications relating to the maintenance of
accounts and other matters connected therewith
are as stated in the paragraph 2(A)(b) above on
reporting under Section 143(3)(b) of the Act and
paragraph 2B(f) below on reporting under Rule
11(g) of the Companies (Audit and Auditors)
Rules, 2014.
g. With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company and the operating
effectiveness of such controls, refer to our
separate Report in "Annexure B”.
B. With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us :
a. The Company has disclosed the impact of
pending litigations as at 31st March 2026 on
its financial position in its standalone financial
statements - refer Note 39 and 40 to the
standalone financial statements.
b. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.
c. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company-
refer Note 24 to the standalone financial
statements.
d (i) The management has represented that, to
the best of its knowledge and belief, other
than as disclosed in the Note 53 (a) and
(b) to the standalone financial statements,
no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources or
kind of funds) by the Company to or in any
other person(s) or entity(ies), including
foreign entities ("Intermediaries”), with the
understanding, whether recorded in writing or
otherwise, that the Intermediary shall directly
or indirectly lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company ("Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.
(ii) The management has represented that, to the
best of its knowledge and belief, as disclosed
in the Note 54 (h) to the standalone financial
statements, no funds have been received
by the Company from any person(s) or
entity(ies), including foreign entities ("Funding
Parties”), with the understanding, whether
recorded in writing or otherwise, that the
Company shall directly or indirectly, lend or
invest in other persons or entities identified in
any manner whatsoever by or on behalf of the
Funding Parties ("Ultimate Beneficiaries”) or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures that have
been considered reasonable and appropriate
in the circumstances, nothing has come
to our notice that has caused us to believe
that the representations under sub-clause
(i) and (ii) of Rule 11(e), as provided under
(i) and (ii) above, contain any material
misstatement.
e. The interim dividend declared and paid by the
Company during the year and until the date of
this audit report is in accordance with Section
123 of the Act.
The final dividend paid by the Company during
the year, in respect of the same declared for the
previous year, is in accordance with Section 123
of the Act to the extent it applies to payment
of dividend.
As stated in Note 20 to the standalone financial
statements, the Board of Directors of the
Company have proposed final dividend for
the year which is subject to the approval of
the members at the ensuing Annual General
Meeting. The dividend declared is in accordance
with Section 123 of the Act to the extent it
applies to declaration of dividend.
f. Based on our examination which included test
checks, the Company has used an accounting
software for maintaining its books of account
which has a feature of recording audit trail
(edit log) facility except that audit trail was not
enabled at the database level for accounting
software relating to scheme master to log any
direct data changes. For accounting software
for which audit trail feature is enabled, the audit
trail facility has been operating throughout the
year for all relevant transactions recorded in
the software and we did not come across any
instance of audit trail feature being tampered
with during the course of our audit. Additionally,
where audit trail (edit log) facility was enabled
and operated in the previous year, the audit
trail has been preserved by the Company as
per the statutory requirements for record
retention except that at the database level for
the accounting software used for general ledger
purposes, logs for any direct changes were not
retained prior to 8th September 2025.
C. With respect to the matter to be included in
the Auditor’s Report under Section 197(16) of
the Act:
In our opinion and according to the information and
explanations given to us, the remuneration paid/
payable by the Company to its directors during the
current year is in accordance with the provisions
of Section 197 of the Act. The remuneration paid/
payable to any director is not in excess of the limit
laid down under Section 197 of the Act. The Ministry
of Corporate Affairs has not prescribed other details
under Section 197(16) of the Act which are required
to be commented upon by us.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No.:101248W/W-100022
Sudhir Soni
Partner
Membership No.: 041870
ICAI UDIN:26041870KNOTCQ5426
Place: Mumbai
Date: 7th May 2026
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