2.13 Provisions and Contingencies
A provision is recognised when as a result of past event, the Company has a present legal or constructive obligation
which can be reliably estimated and it is probable that an outflow of resources will be required to settle the obligation.
Provisions (excluding retirement benefits) are determined based on the best estimate required to settle the obligation
at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. These are
reviewed at each balance sheet date and adjusted to reflect the current best estimates.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation
cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood
of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
2.14 Financial Instruments
2.14.1 Initial Recognition and Measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instruments.
All financial assets and financial liabilities are initially measured at fair value, except for trade receivables without a
significant financing component which are initially measured at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the value of the financial assets
or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at Fair Value Through Profit or Loss (FVTPL) are recognised in the Statement of
Profit and Loss.
2.14.2 Subsequent measurement of Financial Assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.
Debt instruments that meet conditions based on purpose of holding assets and contractual terms of instrument are
subsequently measured at amortised cost using effective interest method.
All other financial assets are measured at fair value.
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as
Fair Value Through Profit or Loss. Interest income is recognised in profit or loss and is included in the "Other income”
line item.
Investments in Subsidiaries and Associates are carried at cost less accumulated impairment losses, if any.
The company has adopted accounting policy choice to adjust any change in contingent consideration subsequent
to initial purchase price allocation against the cost of Investment. Where an indication of impairment exists, the
carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal
of investments in subsidiaries, associates and joint venture, the difference between net disposal proceeds and the
carrying amounts are recognised in the standalone statement of profit and loss.
2.14.3 Impairment of Financial Assets
The Company recognises loss allowance using expected credit loss model for financial assets which are not
measured at Fair Value Through Profit or Loss. Expected credit losses are weighted average of credit 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 flows that the Company expects to
receive, discounted at original effective rate of interest.
For Trade receivables, the Company measures loss allowance at an amount equal to lifetime expected credit losses.
The Company computes expected credit loss allowance based on a provision matrix which takes into account
historical credit loss experience and adjusted for forward-looking information.
2.14.4 Financial Liabilities and equity instruments
2.14.4.1 Classification of debt or equity
Debt or equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of financial liability and
equity instrument.
2.14.4.2 Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct
issue costs.
2.14.4.3 Financial Liabilities
All financial liabilities (other than derivative financial instruments) are measured at amortised cost using effective
interest method at the end of reporting period.
2.14.5 Derecognition of Financial Assets and Liabilities
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or when the Company transfers the contractual rights to receive the cash flows of the financial asset in which
substantially all the risks and rewards of ownership of the financial asset are transferred, or in which the Company
neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and does not
retain control of the financial asset.
The Company derecognises a financial liability (or a part of financial liability) when the contractual obligation is
discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised
and the consideration paid is recognised in the Statement of Profit and Loss.
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis or
to realise the asset and settle the liability simultaneously.
2.14.6 Derivative Financial Instruments
The Company holds derivative financial instruments such as foreign exchange forward contracts to manage its
exposure to foreign currency exchange rate risks.
Derivatives are initially recognised at fair value at the date the contracts are entered into. Subsequent to initial
recognition, these contracts are measured at fair value at the end of each reporting period and changes are recognised
in Statement of Profit and Loss.
2.15 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / loss before 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 financing activities of the Company are segregated.
Cash and Cash Equivalents for the purpose of Cash Flow Statement comprise of cash at bank, cash in hand and short¬
term deposits with an original maturity of three months or less, as reduced by bank overdrafts.
2.16 Segment Reporting
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 for which separate financial
information is available and for which operating profit / loss amounts are evaluated regularly by the Chief Operating
Decision Maker (CODM) in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets and segment liabilities have been 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 liabilities which relate to the Company as a whole and are
not allocable to segments on reasonable basis have been included under "unallocated revenue/expenses/assets/
liabilities” respectively.
2.17 Employee Benefits
Employee benefits include Provident Fund, Superannuation Fund, Employee State Insurance Scheme, Gratuity Fund,
Compensated Absences, Anniversary Awards, Premature Death Pension Scheme,Total Disability Pension Scheme and
Long Service Ex Gratia.
2.17.1 Defined Contribution Plans
The Company’s contribution to Provident Fund, Superannuation Fund, National Pension Scheme and Employee State
Insurance Scheme are considered as defined contribution plans and are charged as an expense based on the amount
of contribution required to be made and when services are rendered by the employees.
2.17.2 Defined Benefit Plans
For Defined Benefit Plans in the form of Gratuity Fund, the cost of providing benefits is determined using the Projected
Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Remeasurement, comprising
actuarial gains and losses and the return on plan assets (excluding net interest) is reflected immediately in the
Balance Sheet with a charge or credit recognised 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 profit or loss. Past service cost is recognised immediately for both vested and the non-vested portion.
The liability recognised in the Balance Sheet represents the present value of the defined benefit obligation, as reduced
by the fair value of scheme assets. Any asset resulting from this calculation is limited taking into account the present
value of available refunds and reductions in future contributions to the schemes.
2.17.3 Short-Term and Other Long-Term Employee Benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave 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 Company determines the liability for such accumulated leaves using the Projected
Accrued Benefit method with actuarial valuations being carried out at each Balance Sheet date.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the
benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the
estimated future cash outflows expected to be made by the Company in respect of services provided by employees up
to the reporting date.
The Company presents the above liability/(asset) as current and noncurrent in the Balance Sheet as per actuarial
valuation by the independent actuary; however, the entire liability towards gratuity is considered as current as the
Company will contribute this amount to the gratuity fund within the next twelve months.
2.18 Earnings per share
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 weighted average number of
equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable
to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive
potential ordinary shares, which includes all stock options granted to employees.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all 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.
2.19 Assets held for sale
Sale of business is classified as held for sale, if their carrying amount is intended to be recovered principally through
sale rather than through continuing use. The condition for classification as held for sale is met when disposal business
is available for immediate sale and the same is highly probable of being completed within one year from
the date of classification as held for sale.
2.20 Discontinued operations
A discontinued operation is a component of the Company’s business that represents a separate line of business that
has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a
discontinued operation occurs upon the earlier of disposal or when the operation meets the criteria to be classified as
held for sale.
2.21 Non-current assets and disposal groups held for sale
Assets of disposal groups that is available for immediate sale and where the sale is highly probable of being
completed within one year from the date of classification are considered and classified as assets 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 j Significant Accounting Judgements and key sources of Estimation Uncertainty
The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies, reported amounts of assets, liabilities, income and expenses, and
accompanying disclosures, and the disclosure of contingent liabilities. The estimates and associated assumptions
are based on historical experience and other 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.
3.1 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:
3.1.1 Impairment of investments in Subsidiaries and Associates
Investment in subsidiaries and associates is measured at cost and tested for impairment annually. For impairment
testing, management determines recoverable amount, using cash flow projections which take into account past
experience and represent management’s best estimate about future developments. 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. Management obtains fair value of investments
from independent valuation experts for certain subsidiaries wherever needed.
3.1.2 Impairment of Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets (i.e. trademarks 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, as certified by independent valuer. 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.
3.1.3 Employee related provisions
The costs of long term and short term employee benefits are estimated using assumptions by the management. These
assumptions include rate of increase in compensation levels, discount rates, expected rate of return on assets and
attrition rates (disclosed in Note 45)
3.1.4 Income taxes
Significant judgements are involved in recognition of deferred tax assets: availability of future taxable profit against
which deductible temporary differences and tax losses carried forward can be utilised and uncertain tax treatments
(disclosed in Note 48).
3.1.5 Property, Plant and Equipment and Other Intangible Assets
The useful lives and residual values of Company’s assets are determined by the management at the time the asset
is acquired. These estimates are reviewed annually by the management. The lives are based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or
commercial obsolescence arising from changes or improvements in production or from a change in market demand of
the product or service output of the asset.
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.
3.1.6 Leases
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term
(including anticipated renewals) and the applicable discount rate.
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 Company makes an
assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably
certain that any options to extend or terminate the contract will be 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 importance of the underlying asset to operations taking into account the location
of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to
ensure that the lease term reflects the current economic circumstances.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or
for a portfolio of leases with similar characteristics.
3.2 Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable
w.e.f. 1st April 2015. The Company has reviewed the amendment and based on its evaluation has determined that it
does not have any significant impact in its financial statements.
In August 2025, MCA notified the following amendments to:
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The ammendment relates to
classification of liabilities as current or non-current and non-current liabilities with covenants. In the context of
classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least
12 months after the reporting date and instead requires that the said right should exist on the reporting date and
have substance. The amendment also introduces guidance on classification of liabilities with covenants. The
Company has no impact of these amendments in its classification criteria of current and non-current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. 1st April
2026 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier
finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range
of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may
cause concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has
determined that it does not have any impact in its financial statements.
3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide
a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied the
relief. The Company has reviewed the amendment and based on its evaluation has determined that it does not have
any impact in its financial statements.
3.3 Standards issued but not yet effective
Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year, the MCA has issued
an amendment for removal of carve-out under Ind AS 1, Presentation of financial statements relating to classification
of liabilities subject to covenants breach which is applicable with effect from 1st April 2026. The Company has reviewed
the new pronouncements and based on its evaluation has determined that it does not have any impact in its
financial statements.
Goodwill, Copyrights and Trademark
Goodwill, copyrights and trademark in the books of the Company pertain to Consumer & Bazaar and Business to
Business of the Company.
At the end of each reporting period, the Company reviews carrying amount of goodwill, copyrights and trademark
to determine whether there is any indication that goodwill, copyrights and trademark has suffered any impairment
loss. Accordingly, recoverable amount of goodwill, copyrights and trademark is arrived basis projected cashflows
from Consumer & Bazaar business and Business to Business.
Recoverable amount of goodwill, copyrights and trademark exceeds the carrying amount of goodwill, copyrights
and trademark in the books as on 31st March 2026 and as on 31st March 2025. Further there are no external
indications of impairment of goodwill, copyrights and trademark. As a result, no impairment loss on goodwill,
copyrights and trademark is required to be recognised.
Projected cashflows from Consumer & Bazaar business and Business to Business
The recoverable amount of this cash-generating unit is determined based on a value in use calculation which uses
cash flow projections based on financial budgets approved by the management for next year, estimates prepared
for the next 4 years thereafter and a discount rate of 13.4% per annum (13.5% per annum as at 31st March 2025).
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 extrapolated using a
steady 7% per annum (7% per annum as at 31st March 2025) growth rate. The management believes that any reasonably
possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying
amount to exceed the aaareaate recoverable amount of the cash-aeneratina unit.
b. Terms/ Rights attached to equity shares
The Company has a single 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.
The Board of Directors at its meeting held on 7th May 2026 declared a final dividend of 11.50 per equity share of 1 each amounting to
1,170.43 crores subject to approval of the shareholders at the ensuing Annual General Meeting.
During the year ended 31st March 2026, the Company has paid final dividend of ? 20.00 per equity share of ? 1 each (pre-bonus) for the
financial year 2024-25 as approved by the Members of the Company at the Annual General Meeting held on 6th August 2025.
Further the Company has paid special interim dividend of ? 10.00 per equity share of ? 1 each (pre-bonus) for the financial year 2025-26
as approved by the Board of Directors at its meeting held on 6th August 2025.
c. Bonus shares issued during the current financial year
On 24th September 2025, the Company allotted 50,88,57,016 bonus equity shares of 1/- each as fully paid up in the proportion of 1:1 [i.e.,
1 (One) new fully paid-up bonus equity share 01 1/- (Rupee One only) each for every 1 (One) existing fully paid-up equity share of
1/- (Rupee One only) each], to the eligible members of the Company whose name appeared in the Register of Members/Register of the
Beneficial Owners, as on 23rd September 2025, ('Record Date') in accordance with approval received from the Members by way of postal
ballot, result of which was declared on 11th September 2026.The said bonus equity shares rank pari passu in all respects with the
existing equity shares of the Company. The paid up capital on account of bonus issue of 50,88,57,016/- has been apportioned from
securities premium.
21.1 Capital Reserve on Business Combination
Capital Reserve represents excess/short of net assets acquired in business combination. It is not available for the distribution to
shareholders as dividend.
21.2 Securities Premium
Security Premium is created when shares are issued at premium. The Company may issue fully paid-up bonus shares to its members
out of the Securities Premium, and Company can use this reserve for buy-back of shares. This reserve is utilised in accordance with the
provisions of the Companies Act, 2013.
21.3 Capital Redemption Reserve
The Company has recognised Capital Redemption Reserve on buy-back of equity shares from its General Reserve. 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.
21.4 Cash Subsidy Reserve
Cash Subsidy Reserve represents subsidies received from state government. It is not available for distribution as dividend to shareholders.
21.5 Share Options Outstanding Account
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.
21.6 General Reserve
General Reserve is created by a transfer from one component of equity to another and is not an item of Other Comprehensive Income.
The same can be utilised by the Company in accordance with the provisions of the Companies Act, 2013.
21.7 Retained Earnings
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.
Notes:
a) Loans to Pagel Concrete Technologies Pvt Ltd does not have any repayment schedule and is re-payable on demand. It is not bearing
any interest and is fully provided.
b) Loan to subsidiary NBFC Pargro Investments Pvt Ltd is interest bearing @ RBI Repo rate 200 bps per annum and is repayable as
per agreed schedule.
c) Loan to subsidiary Nina Percept Private Limited is interest bearing @ Government security yield 50 bps per annum and is repayable
as per agreed schedule.
d) Loan to Associate, bearing interest @ 9% per annum, and fully provided for, has been converted into Optionally Convertible
Redeemable Debentures, repayable/ convertible as per agreed terms.
e) For investments in subsidiaries, refer Note 7 and Note 44; and for guarantees given to subsidiaries, refer Note 44.
In line with Circular No 04/2015 issued by Ministry of Corporate Affairs dated 10/03/2015, loans given to employees as per the Company's
policy are not considered for the purposes of disclosure under Section 186(4) of the Companies Act, 2013
Figures in brackets () represents previous year
42 Segment information
Operating Segment:
The Company operates in two segments namely Consumer & Bazaar (C&B) and Business to Business (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 materials and construction and paint chemicals. B2B covers
sale of products to end customers which are mainly large business users. This includes Industrial Products (IP) such as adhesives, synthetic
resins, organic pigments, pigment preparations, construction chemicals (projects), surfactants, etc. and caters to various industries like
packaging, textiles, paints, joineries, printing inks, paper, leather, etc. Others includes sale of raw materials.
Operating Segment disclosures are consistent with the information provided to and reviewed by the Managing Director (Chief Operating
Decision Maker).
46| Employee Stock Option Scheme
a) Details of Employee Share Options
ESOP 2016 covering grant of 45,00,000 options (pre-bonus) [including 2,50,000 options (pre-bonus) to be granted to Eligible Employees/
Directors of the subsidiary Companies] was approved by the shareholders through Postal Ballot on 2nd April 2016. Each 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 than a maximum of six years from
the date of grant of such options. In the case of Eligible Employee who has not completed 3 years of employment as on date of the grant
of Options then the Options which are due for vesting 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 to be exercised within 3 years from the date of respective vesting.
47| Financial Instruments
(A) Capital Management
The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximising the
return to stakeholders through the optimum utilisation of the equity balance. The capital structure of the Company consists of only equity
of the Company. The Company is not subject to any externally imposed capital requirements. Refer note 56 for information on ratios.
(C) Financial risk management objectives
The Company's Corporate Treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations of the Company through 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 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 purposes. The Corporate Treasury function reports quarterly to the Company's risk
management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.
(D) Market risk
The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates (see note E below). The
Company enters into foreign exchange forward contracts to manage its exposure to foreign currency risk of net imports.
Interest risk: The Company is mainly exposed to the interest rate risk due to its investment in mutual funds. The interest rate risk arises
due to uncertainties about the future market interest rate on these investments. The Company has laid policies and guidelines including
tenure of investment made to minimise impact of interest rate risk.
Price risk: The Company is mainly exposed to the price risk due to its investment in mutual funds, bonds and alternate investment funds.
The changes in the prices will not have material impact on financial statements.
(ii) Foreign exchange forward contracts
It is the policy of the Company to enter into foreign exchange forward contracts to cover foreign currency payments (net of receipts).
The Company enters into contracts with terms upto 90 days. The Company's philosophy 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.
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.
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 arrived at is netted off
with the outstanding forward cover as on date and with the surplus foreign currency balance available in EEFC A/Cs.
Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward cover deals
are all backed by actual trade underlines and settlement of these contracts on maturity are by actual delivery of the hedged currency
for settling the underline hedged trade transaction.
The maturity of above outstanding Buy forward contracts is less than 6 months.
The line-items in the financial statements that include the above hedging instruments are “Other Financial Assets" of 3.39 crores
( NIL crores as at 31st March 2025) and “Other Financial Liabilities" of NIL ( 0.78 crores as at 31st March 2025) on a net basis
(refer Note: 13 and 24 respectively).
The aggregate amount of Loss under foreign exchange forward contracts recognised in the Statement of Profit and Loss is 4.20 crores
(Loss of 0.83 crores as at 31st March 2025).
(F) Credit risk management
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit
risk arises primarily from financial assets such as trade receivables (refer Note 9), investment in mutual funds, derivative financial
instruments, other balances with banks, loans and other receivables.
The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company's exposure
and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst
the counterparties.
Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited 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.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding
and liquidity management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of
financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in Cash and Cash Equivalents.
The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating
commitments in a timely and cost-effective manner.
(i) Liquidity risk tables
The following tables detail the Company's remaining contractual maturity for its non-derivative and derivative financial liabilities with
agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Company will be liable to pay.
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.
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.
Nature of CSR activities:
(1) To promote, carry out, support activities relating to: Education and Training including in Science and Technology, Humanities etc;
Healthcare; Welfare of Children, Women, Senior Citizens, and Differently Abled Persons; Employment enhancing Vocational skills;
Sanitation; Water management; Agriculture; Horticulture; Milk and Animal Health; promotion of Farmer Producer Organisation;
Swachtha Initiative; promotion of Culture; Art & Craft; Conservation of Natural Resources; Promotion and development of traditional Arts
& Handicrafts, Khadi and Handloom; Employment Generation and Government Scheme System; Environment Sustainability; Science &
Technology; Rural Development; Animal Welfare; welfare and development measures towards reducing inequalities faced by Socially and
Economically Backward groups; and such activities may include establishing, supporting and / or granting aid to institutions engaged in
any of the activities referred to above.
(2) To conduct and support studies & research; publish and support literature, publications & promotion material; conduct and support
discussions, lectures, workshops & seminars in any of the areas covered above.
(3) To promote, carry out, support any activities covered in Schedule VII to the Companies Act, 2013, as amended from time to time.
53 Other Information
a) During the current year, the Company invested an amount of 20.1 crores, in "Pidilite Ventures Private Limited" (PVPL), a wholly
owned subsidiary of the Company (31st March 2025: 34.89 crores). PVPL has further invested in the following companies -
(i) invested an amount of 33.71 crores on 17th October 2025 ( NIL in previous year) in "Imagimake Play Solutions Pvt Ltd" by
subscription to equity shares. The company is engaged in business of providing toys which cater to art & hobby, educational
toys, puzzles and 3D model sets.
(ii) invested an amount of 3.60 crores on 10th February 2026 ( 8.0 crores in previous year) in "Buildnext Construction Solutions
Private Limited". The company is engaged in providing end to end home construction services.
(iii) invested an amount of ? 5 crores on 4th December 2025 (? NIL crores in previous year) in the Printpanda India Pvt Ltd
(Magic Decor). The company is engaged in providing customized wallpapers.
(iv) invested an amount of NIL in current year ( 5.0 crores in previous year) in "Installco Wify Technology Private Limited".
The company is engaged in home improvement and maintenance services platform.
b) During the current year, the Company invested an amount of 17.10 crores on 13th February 2026 ( 25.35 crores in previous year)
in "Bhimad Commercial Company Pvt Ltd" (Bhimad), a wholly owned subsidiary of the Company, by subscription to equity shares.
Bhimad has further invested in following companies -
(i) invested an amount of 17.10 crores on 18th February 2026 ( 25.35 crores in previous year) in "Pargro Investments Private
Limited" (Pargro). Pargro is a Non Banking Finance Company (NBFC) which provides credit in the form of small value retail
loans to support its domain ecosystem and business growth.
Statement of compliance:
With regard to the investments made during the year ended 31st March 2026 as well as 31st March 2025 the Company has complied
with the relevant regulatory provisions.
c) During the current year, the Company invested an amount of 5.00 crores in "Pidilite Grupo Puma Manufacturing Ltd" by
subscription to equity shares.
d) On 21st November 2025, the Government of India notified four Labour Codes - the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, collectively
referred as the 'New Labour Codes', consolidating 29 existing labour laws. The Ministry of Labour & Employment has published draft
Central Rules and FAQs, to facilitate assessment of the financial impact arising from these regulatory changes. The Company has
considered restructured compensation of its employees and assessed the impact of changes, consistent with the Labour Codes,
draft rules and FAQs. Accordingly, the Company has recognised under 'Employees benefits expense' an amount 37.06 crores and
22.27 crores towards gratuity and compensated absences respectively for the year ended 31st March 2026. Further the Company
has also recognised an amounts of 14.55 crores in 'Other Expenses' towards gratuity liability on contract and outsourced
employees/workers for the year ended 31st March 2026. The Company continues to monitor the finalisation of Central and State
Rules and clarifications from the Government on the New Labour Codes and would provide appropriate accounting effect on the
basis of such developments, as needed.
e) During the current year, the company has recognised profit on buyback of shares from "Pidilite USA Inc" amounting to 1.21 crores
for 18,00,000 equity shares (Investment value of 7.89 crores) recognised under Other Income.
f) During the previous year, the company has recognised profit on buyback of shares from "ICA Pidilite Private Limited" amounting
to 2.14 crores for 2,68,319 equity shares (Investment value of 9.4 crores) recognised under Other Income. The profit earned on
buyback of these equity shares is not taxable in the hands of the Company under section 10(34A) of the Income Tax Act, 1961.
g) During the previous year, the Company invested an amount of 13.86 crores in "Pidilite Middle East Ltd" and 0.67 crores in "Pidilite
Industries Egypt SAE" by subscription to equity shares.
h) During the year ended 31st March 2024, the Company has divested its entire shareholding in its wholly owned subsidiary "Pulvitec
do Brasil Industria e Comercio de Colas e Adesivos Ltda" (hereinafter referred to as "Pulvitec"). During the previous year ended 31st
March 2025, as part of indemnity obligations, Company received tax claims amounting 7.26 crores, which was partially offset
against supervening assets in form of tax credits available with Pulvitec of 2.21 crores resulting in net settlement of 5.05 crores,
which has been provisioned for. The remaining tax credits, after offsetting above referred tax claim, amounting 2.21 crores has
been recognised as other non-current financial assets (refer Note 12). The net amount of 2.84 crores charged to Statement of
Profit and Loss has been recognised under Exceptional Items in the Standalone financial statements (refer Note 38). Consequent to
the same, and after factoring foreign exchange rate fluctuations, the revised indemnity obligations of the Company stands at 13.88
crores, disclosed under Contingent Liabilities and Commitments [refer Note 39A(2c)].
i) The company carries liability towards acquisition amounting to 2.00 crores ( 6.00 crores in previous year) after writing back i.e
adjusted from investment 4.00 crores ( NIL in previous year), in respect of investment made in "Nina Percept Pvt Ltd" in Financial
Year 2023-24 (refer Note 25 & Note 26).
j) During the current year, the Company has impaired loans given to an associate of a subsidiary, "Aapkapainter Solutions Private
Limited" by amount 5.73 crores and 17.32 crores in previous year on assessment of expected Credit Loss upon significant
increase in credit risk of the financial asset, disclosed as Exceptional item in standalone financial statements (refer Note 38).
k) During the current year, the Company has recognised impairment loss amounting to 5.72 crores ( 6.43 crores in previous year)
in respect of certain items of plant and machinery lying in Capital Work In Progress located in Dahej SEZ and Sarigam-Vapi. These
machineries have been assessed as unusable and accordingly recognised as an impairment loss under Depreciation, Amortisation
and Impairment Expense in the Standalone financial Statements based on estimated realizable value.
Additionally in previous year items of plant and equipment (Property Plant and Equipment) located in Mahad and other locations
amounting to 1.60 crores has been assessed as unusable and idle, due to wear and tear and recognised as an impairment
loss under Depreciation, Amortisation and Impairment Expense in the Standalone financial Statements based on estimated
realizable value.
l) During the year ended 31st March 2026, the Company has paid final dividend of ? 20.00 per equity share of ? 1 each (pre-bonus) for
the financial year 2024-25 as approved by the Members of the Company at the Annual General Meeting held on 6th August 2025.
Further the Company has paid special interim dividend of ? 10.00 per equity share of ? 1 each (pre-bonus) for the financial
year 2025-26 as approved by the Board of Directors at its meeting held on 6th August 2025.
m) During the current year, company has impaired its investment in Pidilite C Techos Walling Ltd by 1.82 crores (refer Note 38).
54 Additional Regulatory Information Required By Schedule III to the Companies Act, 2013:
a) The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of Companies Act, 1956 during the current and previous financial year.
b) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
Rules made thereunder.
c) The Company has not been declared willful defaulter by any bank or financial institution or other lender or government or any
government authority.
d) The Company has complied with the requirement with respect to number of layers as prescribed under Section 2(87) of the
Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
e) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961
(such as search or survey), that has not been recorded in the books of account.
f) The Company has not traded or invested in crypto currency or virtual currency.
g) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies
beyond the statutory period.
h) The Company has not received any funds 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 Party (“Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
|