MIRA INFORM REPORT

Report Date :

15.06.2011

IDENTIFICATION DETAILS

Name :	PIDILITE INDUSTRIES LIMITED

Registered Office :	7^TH Floor, Regent Chambers, Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai – 400021, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	28.07.1969

Com. Reg. No.:	11-014336

Capital Investment / Paid-up Capital :	Rs.506.134 Millions

CIN No.: [Company Identification No.]	L24100MH1969PLC014336

TAN No.: [Tax Deduction & Collection Account No.]	MUMP06924B

Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges

Line of Business :	Manufacturing of adhesives, sealants, art material and construction paint and chemical products.

No. of Employees :	1000 in Head Office [Approximately]

RATING & COMMENTS

MIRA’s Rating :

A (68)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 37500000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payment are reported to be reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Ms. Rashmi
Designation :	Account Department
Date :	14.06.2011

LOCATIONS

Registered Office :	7^th Floor, Regent Chambers, Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22822708 / 28367085 / 7089
Fax No.:	91-22-22043969
E-Mail :	anp@pidilite.com info@pidilite.com pcpatel@pidilite.com pil@pidilite.com
Website :	www.pidilite.com www.doctor-fixit.com

Administrative Office:	6^th Floor, Vikas Deep, Laxmi Nagar, District Centre, Vikas Marg, New Delhi – 110 092, India (Only for Dr. Fixit Division)

Corporate Office / Head office:	Ramkrishna Mandir Road, Office Mathuradas Vasanji Road, Andheri (East), Mumbai – 4000059
Tel. No.:	91-22-28357000 / 3083 1000
Fax No.:	91-22-28357008 / 2835 7700
E-Mail :	drfixit@pidilite.com

Factory :	v Plot No. A-22, M. I. D. C. Mahad - 402309, Dist. Raigad, Maharashtra Tel. No. 91-2145-232043/44/45/46 Fax. No. 91-2145-232054/232048 v Plot No. 78-79, G. I. D. C. Industrial Estate, Vapi - 396 195, Dist. Valsad, Gujarat Tel. No. 91-2638-230215/230521 Fax. No. 91-2638-230199 v Plot No. 23, G. I. D. C. Industrial Estate, Vapi 396 195, Dist. Valsad, Gujarat Tel. No. 91-2638-230520/231517 Fax. No. 91-2638-231085 v Plot No. 25,26,39,40 Jawahar Co-operative Industrial Estate, Kamothe, Panvel - 410206, Dist. Raigad, Maharashtra Tel. No. 91-22-27421021/27421856 Fax. No. 91-22-2742332 v Plot No. 19, Taloja Industrial Estate, Taloja, Dist. Raigad, Maharashtra Tel. No. 91-22-27410376/77 Fax. No. 91-22-27410376 v Daman, Union Territory

Branches :	Ahmedabad “Paritosh”, 4thFloor, Near Darpan Academy, Usmanpura, Ahmedabad - 380018. Phone No.: 91-790-30014700 Fax No.: 91-790-27550927 Bangalore H.V.S. Apartments, Edward Road, Bangaluru - 560052. Phone No.: 91-80-22263975 Fax No.: 91-80-22281579 Chandigarh Plot No. 72, Industrial Area, Phase II, Chandigarh. Phone No.: 91-172-2642845 Fax No.: 91-172-2642846 Chennai 306 (Old No.:244), Lloyds Road, Gopalapuram, Chennai - 600086. Phone No.: 91-44-39114000 Fax No.: 91-44-28351626 Delhi 6TH Floor Vikas Deep, Laxmi Nagar District Centre, Vikas Marg, Delhi - 110092. Phone No.: 91-11-45529000 Fax No.: 91-11-22422916 Kanpur 57-A, Co-operative Industrial Estate, Dada Nagar, (Udyog Nagar), Kanpur - 208022. Phone No.: 91-512-2240008 Fax No.: 91-512-2297504 Kolkata Everest House, 10th Floor, 46/C, Chowringhee Road, Kolkata - 700071. Phone No.: 91-33-30514100 Fax No.: 91-33-30514202 Nagpur Plot No. 23/24, Sahu Layout, Khadgaon Road, Wadi, Nagpur - 440023. Phone No.: 91-7104-221094 Fax No.: 91-7104-221081 Kochi Hyderabad

DIRECTORS

As on 11.08.2010

Name :	Mr. B. K. Parekh
Designation :	Chairman

Name :	Mr. S. K. Parekh
Designation :	Vice Chairman

Name :	Mr. M. B. Parekh
Designation :	Managing Director

Name :	Mr. N. K. Parekh
Designation :	Joint Managing Director

Name :	Mr. R. M. Gandhi
Designation :	Director

Name :	Mr. N. J. Jhaveri
Designation :	Director

Name :	Mr. Bansi S. Mehta
Designation :	Director

Name :	Mr. Ranjan Kapur
Designation :	Director

Name :	Mr. Yash Mahajan
Designation :	Director

Name :	Mr. A. B. Parekh
Designation :	Whole Time Director

Name :	Mr. A N Parekh
Designation :	Whole Time Director

Name :	Mr. Bharat puri
Designation :	Director
Date of Appointment :	28.05.2008

Name :	Mr. D. Bhattacharya
Designation :	Director

Name :	V.S. Vasan
Designation :	Whole Time Director [up to 21.10.2009]

Name :	J.L. Shah
Designation :	Whole Time Director [up to 21.10.2009]

KEY EXECUTIVES

Name :	Mr. P. C. Patel
Designation :	Senior Vice President and Company Secretary

Name :	Ms. Rashmi
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	269159342	53.18
Bodies Corporate	85907932	16.97

(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	2901606	0.57

(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	30281327	5.98
Financial Institutions / Banks	42450	0.01
Insurance Companies	8316129	1.64
Foreign Institutional Investors	53846284	10.64
Sub Total	92486190	18.27
(2) Non-Institutions
Bodies Corporate	4798522	0.95

Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	40582662	8.02
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	10298358	2.03

Total Public Shareholding [B]	148165732	29.27

Total [A] + {B]	506134612	100.00

Total	506134612	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and selling of branded consumer products like adhesives, sealants, art material and construction paint and chemicals.

Products :	· Waterproofing Products · Waterproofing Experts · Repair Products · Repairs Experts · Tiling Products · Flooring Products · Sealants Products · Exterior Coatings Item Code No. Product Description 3506 Adhesives 3905 + 3906 Synthetic Resins 3204 Organic Pigments and Preparations based on Organic Pigments

Purchasing Terms :	Depend

PRODUCTION STATUS

(As on 31.03.2010) :-

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production

Dyestuffs
	MT	3900	3144	20949^C
	KL	----	----	6615^D

Chemicals	MT	335265	244085	140076^E
	KL	37780	28860	35159^f

Others Nos. Lac		----	----	2336^G

Notes:-

* This being technical matter, is as certified by the Management and relied upon by Auditors.

A Class of Goods is based on main classification given in the Industries (Development and Regulation) Act, 1951.

B Excluding Resale of Raw Materials / Packing Materials Rs 210.410 million (Rs 101.840 million)

C Includes 17721 Tonnes (16621 Tonnes) produced in the factory of third party.

D Includes 5315 KL (3775 KL) produced in the factory of third party.

E Includes 38423 Tonnes (34723 Tonnes) produced in the factory of third party.

F Includes 5380 KL (4243 KL) produced in the factory of the third party.

G Includes 2332 Nos Lac (2219 Nos Lac) produced in the factory of the third party.

GENERAL INFORMATION

Customers :

· Wholesalers

· End Users

· OEM's

· Ahluwalia Contracts (I) Limited

· Airport Authority of India (AAI)

· Andhra Pradesh State Highway Project

· Archaeological Survey of India Science Branch

· Assam Tourism Development Corporation Limited .

· Associated Cement Companies Limited (ACC)

· B.G.Shirke

· Banaras Hindu University

· Bharat Diamond Bourse

· Bharat Heavy Electricals Limited (BHEL)

· Bharat Petroleum Corporation Limited . (BPCL)

· Bharat Sanchar Nigam Limited . (BSNL)

· Bhushan Steel and Strips Limited

· Birla Ready Mix

· BRG Steel P Limited .

· Bridge And Roof Company (India) Limited

· CDET Explosive Industries Private Limited

· CES (India) Private Limited and BECA Intl

· Cochin Shipyard Limited

· CPWD

· Delhi Metro Rail Corporation Limited

· Department of Atomic Energy

· Gammon India limited

· Gannon Dunkerley and Company

· Government of Gujarat Roads and Bldg Dept

· Govt of India /Ministry of Commerce

· H and R Johnson (I) Limited

· Haryana Police Housing Corporation Limited

· Haryana Power Generation Corporation

· Hindalco Industries Limited

· Hindustan Aeronautics Limited (HAL)

· Hindustan Construction Company Limited (HCC)

· Indian Farmers Fertilisers Co-op Limited

· Indian Oil Corporation Limited (IOCL)

· Indian Railways

· IRCON

No. of Employees :

1000 in Head Office [Approximately]

Bankers :

· Indian Overseas Bank, Fort Branch, Mumbai, Maharashtra, India

· Corporation Bank, Mumbai

· HDFC Bank, Mumbai

· ICICI Bank

· The Royal Bank of Scotland N.V.

Facilities :

SECURED LOANS	31.03.2010 (In Millions)	31.03.2009 (In Millions)
Working Capital Loans from Banks (including Working capital Demand Loan) (Note 1)	217.580	296.860
750 (750) 11.9% Secured Redeemable Non Convertible Debentures of Rs. 1.000 million each (Note 2)	750.000	750.000
750 (750) 10.2% Secured Redeemable Non Convertible Debenture of Rs. 1.000 million each (Note 2)	750.000	750.000
Term Loan from Banks (Note 3)	466.920	796.230
Total	2184.500	2593.090

Notes:-

1. Working Capital Loans from Banks are secured by way of first charge on the stock of Raw Materials, Finished Goods, Packing Material, Stock in Process, Bills Receivable and Book Debts and by way of second charge on the entire Plant and Machinery of the. Company including Stores and Spares. Further, these loans are secured by way of an Equitable Mortgage on the Land and Building of the Company’s unit at Kondivita, Mumbai.

2. Secured Redeemable Non Convertible Debentures are secured by way of mortgage and charge (by First pari passu charge) on the immovable property in Gujarat and all movable properties of the Company. 750 Secured Redeemable Non Convertible Debentures with interest @ 11.9% p.a. will be redeemed at par on 5th December 2013. 750 Secured Redeemable Non Convertible Debentures with interest @ 10.2% p.a. will be redeemed at par on 19^th December 2011.

3. Term Loan from Banks is secured by way of hypothecation of all movable Plant and Machinery of the Company

UNSECURED LOANS	31.03.2010 (In Millions)	31.03.2009 (In Millions)
Interest free Sales Tax loan from Government of Maharashtra	350.590	354.320
Foreign Currency Convertible Bonds (US $ 38.9 million (40 millions) Zero Coupon Convertible Bonds due in 2012) (During the year company has bought back bonds of US $1.7 million ($ 1.1 million)	1679.210	1982.730
Commercial Paper and Others	0.000	650.000
Total	2029.800	2987.050

Amount due within one year Rs. 5.860 millions (Rs 653.730 millions)

Banking Relations :

Auditors :

Haribhakti and Company

Chartered Accountants

Wadia Ghandy and Company

Solicitors and Advocates

Associates :

· Parekh Marketing Limited

· Vinyl Chemical (India) Limited

· Kalva Chemicals Limited

Subsidiaries :

· Fevicol Company Limited

· Pagel Concrete Technologies Private Limited

· Pidilite USA, Inc

· Pidilite Innovation Centre Private Limited

· Pidilite Middle East Limited

· Parekh Marketing Limited

· Vinyl Chemicals (India) Limited

· Kalva Marketing and Services Limited

· Nitin Enterprises

· Bhimad Commercial Company Private Limited

· Nebula Trading FZE

· Pidilite Bamco Limited

· Mala Parekh

· Chemson Asia Pte Limited

· P T Pidilite Indonesia

· Jupiter Chemicals (LLc)

· Madhumala Traders Private Limited

· Pidilite international Pte Limited

· Pulvitec Do Brasil Industria E Commercio De Colas E Adesivos Limited

· Pidilite Speciality Chemicals Bangladesh Private Limited

· Pidilite Innovation Centre Pte Limited

· Pidilite Industries Egypt – SAE

* Pidilite South East Asia Limited

* Bamco Supply Services Limited

* PIL Trading Egypt (LLC)

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

700,000,000	Equity Shares	Re. 1/- Each	Rs.700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

506,134,612	Equity Shares	Re. 1/- Each	Rs. 506.134 millions

1. 7475880 Equity Shares of Re 1 each have been issued for consideration other than cash pursuant to various schemes of amalgamation in earlier years.

2. 479481646(226414340) Equity Shares of Re 1 each have been allotted as fully paid-up Bonus Shares by way of capitalization of General Reserve, Securities Premium Account and Capital Redemption Reserve.

3. The equity shares of the face value of Rs 10 each were sub-divided into ten equity shares of the face value of Re 1 each w.e.f. 27th September 2005.

4. Bonus Shares Issue Account transferred to Equity Share Capital on account of dispute for title of 6000 fully paid bonus shares.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		506.130	253.070	281.820
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8879.660	7083.080	6142.990
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9385.790	7336.150	6424.810
LOAN FUNDS
1] Secured Loans		2184.500	2593.090	1904.270
2] Unsecured Loans		2029.800	2987.050	3121.710
TOTAL BORROWING		4214.300	5580.140	5025.980
DEFERRED TAX LIABILITIES		415.360	440.870	422.900

TOTAL		14015.450	13357.160	11873.690

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		4174.720	4345.540	3841.350
Capital work-in-progress		2774.020	2387.470	1629.320

INVESTMENT		5106.640	2407.100	1623.690
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2506.310	2288.930	2655.440
	Sundry Debtors	2387.590	2413.030	2238.430
	Cash & Bank Balances	331.160	1270.760	1485.500
	Other Current Assets	51.510	211.150	32.410
	Loans & Advances	962.190	868.930	860.480
Total Current Assets		6238.760	7052.800	7272.260
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2187.650	1715.450	1226.900
	Sundry Creditors	1114.280	525.710	668.220
	Provisions	976.760	594.590	597.810
Total Current Liabilities		4278.690	2835.750	2492.930
Net Current Assets		1960.070	4217.050	4779.330

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		14015.450	13357.170	11873.690

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.3008
	SALES
		Income	19297.450	17611.220	15353.080
		Other Income	271.770	238.920	253.460
		TOTAL (A)	19569.220	17850.140	15606.540

Less	EXPENSES
		Raw Materials	9958.160	10328.350	8430.820
		Other Expenses	5858.470	5417.620	4547.910
		TOTAL (B)	15816.630	15745.970	12978.730

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3752.590	2104.170	2627.810

Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3752.590	2104.170	2627.810

Less/ Add	DEPRECIATION/ AMORTISATION (F)		463.860	472.160	385.050

	PROFIT BEFORE TAX (E-F) (G)		3288.730	1632.010	2242.760

Less	TAX (H)		397.510	168.220	363.220

	PROFIT AFTER TAX (G-H) (I)		2891.220	1463.790	1879.540

	Prior year tax provision written back [net]		43.730	0.000	3.990

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		779.130	720.270	525.160

Less	APPROPRIATIONS
		Dividend on Preference Share	0.000	0.750	0.000
		Proposed Dividend on Equity Shares	759.200	442.870	442.870
		Tax on Dividend	126.100	75.380	75.270
		Transfer to Capital Redemption Reserve	0.000	28.750	0.000
		Transfer to Debenture Redemption Reserve	322.460	257.180	70.280
		Transfer to General Reserve	1500.000	600.000	1100.000
	BALANCE CARRIED TO THE B/S		1006.320	779.130	720.270

	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	1838.460	1819.530	1441.860
		Others	4.010	3.600	0.000
	TOTAL EARNINGS		1842.470	1823.130	1441.860

	IMPORTS
		Raw Materials	1888.760	2181.090	2145.960
		Capital Goods	6.590	36.500	74.790
		Others	448.530	311.930	219.930
	TOTAL IMPORTS		2343.880	2529.520	2440.680

	Earnings Per Share (Rs.)		5.80	2.89	7.14

Particulars			31.03.2011

Sales Turnover [Approximately]			22000.000

Expected Sales ( 2011-2012 ) : Rs.25000.000 millions

The above information has been parted by Ms. Rashmi [Account Department]

QUARTERLY RESULTS

PARTICULARS	30.06.2010 1^st Quarter	30.09.2010 2^nd Quarter	31.12.2010 3^rd Quarter	31.03.2011 4^th Quarter
Net Sales	6314.900	5895.600	5935.700	5639.400
Total Expenditure	4769.700	4671.900	4750.600	4826.000
PBIDT (Excl OI)	1545.200	1223.700	1185.100	813.400
Other Income	12.500	47.400	61.700	48.300
Operating Profit	1557.700	1271.100	1246.800	861.700
Interest	81.900	86.700	51.900	47.700
Exceptional Items	0.000	0.000	0.000	[250.000]
PBDT	1475.800	1184.400	1194.900	564.000
Depreciation	108.300	110.800	110.900	113.900
Profit Before Tax	1367.500	1073.600	1084.000	450.100
Tax	300.200	245.100	233.300	157.600
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	1067.300	828.500	850.700	292.500
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	1067.300	828.500	850.700	292.500

KEY RATIOS

PARTICULARS		13.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	14.77	8.20	12.04

Net Profit Margin (PBT/Sales)	(%)	17.04	9.27	14.61

Return on Total Assets (PBT/Total Assets}	(%)	31.58	14.32	20.18

Return on Investment (ROI) (PBT/Networth)		0.35	0.22	0.35

Debt Equity Ratio (Total Liability/Networth)		0.90	1.15	1.17

Current Ratio (Current Asset/Current Liability)		1.46	2.49	2.92

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

(Rs. in millions)

Particulars	31.03.2010	31.12.2009	31.12.2008
Small and Medium Enterprises	166.020	160.840	54.300
Others	948.260	364.870	613.920
Total	1114.280	525.710	668.220

Contingent Liabilities :

Contingent liabilities not provided for:

(Rs. in millions)

Particulars	31.03.2010	31.12.2009
i. Guarantees given by Banks in favour of Government and others	4.898	5.602
ii. Guarantees given by Company	64.700	56.530
iii. Disputed liabilities in respect of Income Tax, Sales Tax, Central Excise and Customs (under appeal)	32.380	11.225
iv Claims against the company not acknowledged as debts.	8.144	7.607

History

Subject was established as a partnership firm under the name and style of “Parekh Dyechem Industries”, in 1959 by Mr. B. K. Parekh and his two brothers, S. K. Parekh and H. K. Parekh. It was converted into a private limited company in 1969. A group company Kondivita Industries was merged with the company in 1984. Its name was changed to PDI Chemicals Limited in 1988. In 1989, another group company, Subject was merged with PDI Chemicals, and the name of the merged entity was changed to Pidilite Industries. Triveni Chemicals, another group company, was also merged with Pidilite in 1992. While the Fevicol brand, launched in 1959, has been in existence for almost 40 years, the company’s consumer products division was set up in 1984, when the company decided to build up a strong distribution network.

The company has been a pioneer and market leader in the field of consumer and speciality chemicals in India, since its inception in 1959. The company’s proactive market – driven approach has given it a strong base between both consumer and industrial segments. The company has a wide range of products, which find application in construction, plastics, textiles, paper, leather, paints, engineering, nurtured over four decades. The company’s brand ‘Fevicol’ is a market leader in the synthetic adhesives market. The company has a diverse product range, a number of established brands and a large distribution network of dealers, retail outlets, offices and sales representatives spread throughout the country. The company has been awarded the status of Export House by the Government of India.

The company acquired the brand “Ranipal” along with the goodwill of the business, other assets and know-how from Indian Dyestuff Industries Limited in August 1999 for a consideration of Rs. 40 millions. Brands “M-Seal” and “Mr. Fixit” along with adhesives and sealants business of Mahindra Engineering and Chemical Products Limited, other assets and know-how were acquired in March 2000 for a consideration of Rs. 320 millions. During the year 1999-2000, the company issued bonus shares in ratio of 1:1.

During the year 2001, the company extended Ranipal brand to products such as stain removers and detergent enhances. The company had also plan to introduce a range of products for waterproofing as well as repairs and maintenance of buildings under the brand Dr. Fixit. The total capital expenditure incurred for modernization and upgradation of its plants were Rs. 299.800 millions. It has acquired the brands of Bullbond and Vitapon at a consideration of Rs. 66.400 millions from Parekh Marketing Limited. From the Kalva Chemicals Limited, the company has acquired Kalvyl, Tracol and Parvyl brands of Adhesives/Resins for a consideration of Rs. 16.900 millions.

MANAGEMENT DISCUSSION AND ANALYSIS

Pidilite Industries Limited on a stand-alone basis achieved 10% growth in net sales. However, excluding the sales from the “Others” segment, net sales growth was 15%. Earnings before depreciation, interest, tax and foreign exchange loss increased by 60%, profit before tax (PBT) increased by 102% and profit after tax (PAT) increased

by 97% on a stand-alone basis.

The profitability of the Company significantly improved in the current year due to lower material costs, strengthening of Indian Rupee, lower duties and control on costs. Sales growth picked up in the second half of the year, due to improvement in economic conditions. The Company’s sales have grown at a CAGR of 18% over the last five years.

On a consolidated basis, Pidilite net sales grew by 10%, PBT increased by 144% and PAT increased by 144%. Overseas Subsidiaries reduced losses in the current year due to reduction in costs and improved economic conditions.

New Products

In the adhesives category the Company has started expanding its range of products by introducing new products for the joinery segment. These products are used in mechanized joinery and modular furniture units.

During the year the Company acquired the retail wood working brand of Henkel, i.e. Woodlok. Products under this brand were relaunched in select markets in the second half of the year.

The Company has started expanding its range of Dr. Fixit Flooring Solutions for use in industrial and commercial flooring. Superior grades of Tile Fixing Products were introduced under Roff brand during the year.

The Company has introduced the SMARTCARE range of products for healthcare and hospitality segments.

M Seal Super, a versatile epoxy putty meant for DIY applications which can be used in both wet and dry conditions, was introduced during the year.

In the Arts & Stationary range several innovative products/modifications were introduced to serve consumers better.

Fevistik Blue and Fevistik Purple are new introductions. Unlike regular white glue, these coloured sticks, when applied, appear coloured but the colour disappears after a few seconds enabling young children to see and control the application of glue.

New products launched during 2009-10 in the Industrial Products segment range include Binders for water based links and overprint varnishes.

A high performance binder was introduced for decorative texture paints.

In the leather product range an important addition was made in the form of high performance upgradation compound.

Customer Relations :

Pidilite and Fevicol celebrated their Golden Jubilee Year in 2009-10. There were many initiatives linked with the Golden Jubilee celebration involving dealers, carpenters and trade partners.

A special Golden Jubilee Furniture Book was launched and was well appreciated with a print of over 30,000 copies.

Dr. Fixit Institute (DFI) of Structural, Protection and Rehabilitation continued the successful Healthy Construction Lecture Series to increase awareness of the Global Best Practices in this field. 3R’s – A publication for leading experts on Repair, Restoration, Renewal of built environment was initiated to position DFI and the Dr. Fixit brand as an expert in Construction Chemicals.

A campaign for free health check up, for terrace waterproofing, was successfully carried out in key markets as an on ground activation programme. This was supported by TV advertising. The response has been overwhelming and the same concept is being extended to other products.

The annual International Art and Craft Contest attracted participation from 2250 schools in India and from 5 international locations with an overall participation of 7 lakh students. The theme this year was “My mother, my world”. The finals were held in Goa where the Honorable Chief Minister of Goa was the chief guest.

Two of our mass consumer contact initiatives entered the Limca Book of Records for maximum participation. On one occasion 2500 students participated in glass painting and on the other occasion 3500 students participated in pot painting with Crackle medium. Both events were covered extensively in print and electronic media.

The year saw release of four new commercials.

“Moochwali” an advertisement for Fevicol, was released as part of the Golden Jubilee Year celebrations.

“Moochwali” won three Abby awards at the last Goafest, the annual advertising awards event of Advertising Club, Bombay and Advertising Agencies’ Association of India.

There were two new commercials for Fevikwik with the theme “Paanch Rupiya Nikal” and one of these won an ABBY at the abovementioned Goafest.

The fourth new advertisement was for Dr. Fixit Newcoat – “No Breaking News”.

Financial Performance

The Operating Profit and Net Profit, for the year at Rs. 4132 million and Rs 2891 million increased by 60% and 97% respectively. Income Tax for the current year at Rs 423 million is higher than Rs 150 million (including Rs 28 million for Fringe Benefit Tax) in the previous year.

In the last year’s report, the Company had highlighted the impact of the economic slowdown in India and abroad and its impact on the overall economic growth rate and on particular segments in which the Company operates.

The difficult economic conditions continued in the first six months of current year and improvement in growth rates was witnessed in the second half of the year.

However, there was substantial reduction in the input costs due to softening of prices of commodity chemicals and this together with the strengthening of the Indian Rupee, lower duties and cost control measures taken by the Company have helped in improving the year’s performance.

During the year, foreign exchange gain attributable to loans taken for depreciable assets was Rs 123.6 million and the same has been credited to the value of fixed assets. Out of total unamortized foreign exchange loss of Rs 164 million as on 31st March 2009, an amount of Rs 145 million has been reversed during the year due to foreign exchange gains. Further an amount of Rs 10 million has been amortized in the current year. The balance unamortized foreign exchange loss as on 31st March 2010 is Rs 9 million.

Investment in Subsidiaries

During the year, investment of Rs 251 million was made in overseas subsidiaries.

Synthetic Elastomer Project

As mentioned last year, all equipments have arrived at the project site at Dahej (SEZ). Detailed engineering design of the Monomer and Polymer plant has been completed. Using this facility, small quantity of finished products have been manufactured.

Currently work is under way to set up a pilot plant which will enable the Company to streamline key process parameters and to make trial quantities of various grades of elastomers. The total amount spent till 31st March 2010 on this project is Rs 2648 million.

Manufacturing Plants

The adhesives manufacturing capacities at Kalamb in Himachal Pradesh and Daman were expanded during the year.

A drive for TPM, aimed at improving performance through greater involvement and participation of employees, was initiated during the year at the manufacturing units.

80% of the manufacturing units are now certified under ISO 14000/OHSAS 18000 and the balance units are likely to undergo the certification process during the next year.

Foreign Currency Convertible Bonds (FCCB)

During the financial year 2007-2008, the Company had raised US $ 40 million through issue of zero coupon Foreign Currency Convertible Bonds.

As mentioned in last year’s report, the Company has repurchased bonds of face value of US $ 2.8 million which

were cancelled and extinguished.

The FCCB holders are entitled to a right to convert their holdings into equity shares of the Company on or after

16th January 2008. Those FCCB holders who exercised this right till the Record Date i.e. 17th March 2010 were

eligible to receive the bonus shares on par with the other shareholders. Furthermore, those FCCB holders who opt for conversion after the Record Date are, under the terms on which the FCCBs were offered, entitled to a proportionately higher number of equity shares as if the conversion had taken place prior to the Record Date.

Subsidiaries - Overseas Subsidiaries

The Company has 13 overseas subsidiaries (4 direct and 9 step-down) including those having significant manufacturing and selling operations in USA, Brazil, Thailand, Singapore, Dubai, Egypt and Bangladesh.

Pulvitec, the Brazilian subsidiary reported impressive results with 28% growth in sales. This, together with lower

material costs and control on costs helped the Company post cash profits for the year.

Operations in USA significantly reduced costs and improved margins. While overall sales remained flat, losses reduced by 38%.

The operations in Thailand posted cash profits on the back of 26% growth in sales.

Pidilite International Pte. Ltd. (PIPL), a wholly owned subsidiary of the Company acquired the remaining 25% equity shares of Pidilite Bamco Ltd. (PBL) from other shareholders at a cost of US $ 526,675. With this acquisition, all the shares (except 2 shares) of PBL are held by PIPL.

During the year, Pidilite Industries Egypt, SAE and Pidilite Specialty Chemicals Bangladesh Pvt Ltd commenced

manufacturing operations in Egypt and Bangladesh, respectively.

PIL Trading Egypt (LLC), a subsidiary of the Company’s step down subsidiary (namely Pidilite Industries Egypt

SAE), was incorporated during the year for the purpose of carrying on trading activities in Egypt, North Africa

and COMESA countries.

The subsidiary in Bangladesh recorded profits in its first year of operations on the back of robust sales and good margins.

Performance of the subsidiary in Dubai was impacted by poor trading conditions, resulting in losses.

In February 2010, Chemson Asia Pte Ltd merged with Pidilite Innovation Centre Pte. Ltd. (both wholly owned subsidiaries of PIPL).

Overall there was significant improvement in the performance of the overseas subsidiaries with substantial reduction in losses due to measures taken to improve sales and reduce costs.

Total revenue from overseas subsidiaries for the year was Rs 2695 million, up by 16% over the previous year. The total investment in overseas subsidiaries as on 31st March 2010 stands at Rs 2448 million.

A statement pursuant to Section 212 of the Companies Act, 1956, relating to subsidiaries in India and abroad, is attached hereto.

Current Year Outlook

During the current year sales growth is expected to improve. However, margins will be under pressure due to significant increase in input costs.

The Company’s major subsidiaries are in USA, Brazil, UAE, Thailand, Egypt and Bangladesh. The units in Brazil, Thailand, Bangladesh and Egypt are expected to show improved performance. However, the economic scenario in USA & UAE remains uncertain.

Milestones

Year Achievements

1959 Plants commissioned for Acron brand of pigment emulsion

1965 FEVICOL, established as carpenter’s preferred choice of synthetic adhesive

1973 First company in India to start production of violet pigment

1984 Consumer Products Division is born. Plans to set up a nation-wide distribution chain

1989 Fevicryl acrylic colours transform fabric and multi-surface painting market

1993 Pidilite makes a maiden public offering of equity shares

1995 Plants in Mumbai and Vapi acquire ISO 9001; plant at Mahad acquires ISO 9002 certification

1997 Fevicol ranked among the Top 15 Indian brands (by FE Brandwagon Year Book, 1997)

1999 "Ranipal", leading brand of optical whitener, acquired

2000 "M-Seal", leading brand of epoxy compounds, acquired

2000 Fevikwik “fish” commercial wins Golden ABBY for the best TV Commercial of the Century in India

2000 Fevicol campaign wins Silver ABBY for the Campaign of the Century in India

2001 Dr. Fixit range of Construction Chemicals launched

2002 "Steelgrip", leading brand of PVC insulation tape in India, acquired

2002 At the 2002 Cannes Awards, considered to be the Oscar of the advertising world, Fevicol 'Bus' TV commercial wins a Silver in the category for Household Maintenance Products

Awards

· The Company won the Special Gold Award for the Best Continuing Campaign.

· The Fevicol “Pretender” TV Commercial won ABBY Silver in the Homes/Décor/Leisure Category.

AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011

Particulars	Quarter ended 31.03.2011	Year Ended 31.03.2011
Income
a) Net Sales / Income from Operations	5546.700	23537.500
b) Other Operating Income	92.700	268.900
Total Operating Income	5639.400	23806.400
Expenditure
(a) (Increase)/decrease in Stock in Trade	[525.700]	[585.500]
(b) Consumption of Raw Materials	2434.400	8982.400
(c) Purchase of Traded Goods	281.600	1201.700
(d) Employees Cost	595.200	2264.600
(e) Depreciation	113.900	443.900
(f) Other Expenditure Packing Material Consumption Others	750.300 1290.200	2873.800 4273.400
Total Expenditure	4939.900	19454.300
Profit / (Loss) From Operations before other Income, interest and Exceptional Items	699.500	4352.100
Other Income	34.400	149.600
Profit/(Loss) before Interest and Exceptional items	733.900	4501.700
Interest	47.700	268.200
Profit / (Loss) after interest before Exceptional items	686.200	4233.500
Exceptional Items Diminution in value of Investment of Subsidiary	250.000	250.000
Profit / (Loss) From Ordinary activities before Foreign Exchange Different Expenses / (Income)	436.200	3983.500
Foreign Exchange Difference – Expenses / Income	[13.900]	8.400
Profit / (Loss) From Ordinary activities before Tax	450.100	3975.100
Tax Enpenses (Add) / Less: Provision for current Taxation # (Add) / Less: Provision for Differed Tax	142.300 15.300	941.900 [5.700]
Profit / (Loss) From Ordinary activities after Tax	292.500	3038.900
Prior Years Tax Provision Written Back	--	--
Minority Interest	--	--
Share of Profit / (Loss) in Associate Company	--	--
Net Profit/(Loss) for the period	292.500	3038.900
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	506.100	506.100
Reserves (Excluding Revaluation Reserves)	0.000	10889.100
Earning Per Shares (EPS) in Rs. a) Basic EPS b) Diluted EPS	0.58 0.56	6.13 5.96
Public Shareholding - Number of Shares	148165732	148165732
- Percentage of shareholding	29.27	29.27
Promoters and Promoter group share holding

	Pledged / Encumbered	Non Encumbered
- Number of Shares	Nil	357968880
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	Nil	100%
- Percentage of shares(as a % of the total share capital of the company)	Nil	70.73

REPORTING OF SEGMENT WISE REVENUE. RESULTS AND CAPITAL EMPLOYED

Rs. in millions

Particulars	Quarter ended 31.03.2011	Year Ended 31.03.2011
1 Segment Revenue
a) Consumer and Bazaar Products	4097.500	18134.400
b) Industrial Products	1575.400	5809.200
c) Others	25.600	101.200
Total	5698.500	24044.800
Less : Inter Segment Revenue	151.800	507.300
Net Segment Revenue	5546.700	23537.500
2 Profit before Interest and Tax
a) Consumer and Bazaar Products	790.900	4625.900
b) Industrial Products	272.000	1000.700
c) Others	[37.700]	[140.800]
Total	1025.200	5485.800
Less : i) Interest	47.700	268.200
ii) Other unallocable expenditure - net of unallocable income	527.400	1242.500
Total Profit Before Tax	450.100	3975.100
3 Capital Employed
a) Consumer and Bazaar Products	3614.900	3614.900
b) Industrial Products	1585.400	1585.400
c) Others	436.700	436.700
d) Unallocated	5758.200	5758.200
Total Capital Employed	11395.200	11395.200

AUDITED STATEMENT OF ASSETS AND LIABILITIES AS AT 31.03.2011

Particulars	31.03.2011

Shareholders' Funds
(a) Capital	506.100
(b) Reserves & Surplus	10889.100
Loan Funds	2867.300
Deferred Tax Liability (Net)	409.700
Total	14672.200
Fixed Assets	7740.600
Investments	3997.400
Current Assets, Loans and Advances
(a) Inventories	3544.400
(b) Sundry Debtors	2855.900
(c) Cash and Bank Balances	932.100
(d) Other Current Assets	40.800
(e) Loans and Advances	872.000
Less: Current Liabilities and Provisions
(a) Liabilities	4136.800
(b) Provisions	1184.200
Miscellaneous expenditure (Not written off) or adjusted	0.000
Profit & Loss Account	0.000
Total	14672.200

Notes:

1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their meetings held on 19th May, 2011.

2. The Company has opted to publish Standalone as well as Consolidated financial statements. The Consolidated financial results prepared as per Accounting Standard (AS-21) comprise the results of Pidilite Industries Limited (Holding Company), 18 subsidiary companies and one associate Company.

3. The Company had, in March 2009 exercised the option permitted by the Central Government under Notification No G.S.R 225 ( E) to treat foreign exchange difference relating to assets as adjustments in the carrying value of such depreciable assets and amortize other differences of a specified nature over the term of the relative item. Accordingly, the Company has credited the gain of Rs.2.370 millions in the current quarter to the carrying cost of the depreciable assets and credited Rs.3.850 millions to Foreign Currency Monetary Item Translation Account. Out of the said Foreign Currency Monetary Item Translation Account, Rs.3.270 millions has been reversed in the current quarter.

4. Unallocated Capital Employed as at 31^stMarch 2011 includes

a) Capital Work in Progress of Rs.3106.606 millions (31^st March 2010 Rs.2648.020 millions) of Synthetic Elastomer Project presently under implementation

b) Short term investments in units of mutual funds/ term deposit with banks Rs.2300.360 millions (31^st March 2010 Rs.2633.550 millions).

5. During the year, the Company has repurchased Non-Convertible Debentures (NCD) - Series I of Rs.150.000 millions and has fully repurchased NCD - Series II aggregating Rs.750.000 millions.

6. The Company raised US $ 40 million from issue of Zero Coupon Foreign Currency Convertible Bonds (FCCB) in December 2007. After payment of US $ 0.99 million for certain issue related expenses, the Company has utilised US $ 24.46 million for investment in equity capital of its overseas subsidiaries, US $ 13.32 million for capital equipments, US $ 0.75 million for buyback of FCCB and finance cost of US $ 0.43 million. The balance amount is kept with banks.

7. Exceptional item consists of provision for diminution in the value of investment in Pidilite Middle East Limited, a wholly owned subsidiary of the Company.

8. Subject to the approval of the shareholders at the Annual General Meeting, the Board recommended payment of Dividend of Rs.1.75 per Equity share of Re 1/- each for the financial year 2010-11.

9. In terms of Clause 41 of the Listing Agreement, details of number of investor complaints for the quarter ended 31^st March 2011. beginning -1, received - 3, disposed of - 4 and pending - nil.

10. Previous period's figures are regrouped wherever necessary.

Fixed Assets

Goodwill
Freehold Land
Leasehold Land
Buildings
Plant and Machinery
Trademark
Copyrights
Furniture and Fixtures
Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.77
UK Pound	1	Rs.73.45
Euro	1	Rs.64.55

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		68

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

2506.310

2288.930

2655.440

2387.590

2413.030

2238.430

331.160

1270.760

1485.500

51.510

211.150

32.410

962.190

868.930

860.480

6238.760

7052.800

7272.260

2187.650

1715.450

1226.900

1114.280

525.710

668.220

976.760

594.590

597.810

4278.690

2835.750

2492.930

1960.070

4217.050

4779.330

1114.280

525.710

Awards

Unit