Page 106 - Annual Report 2019-20

STATEMENT OF CASH FLOWS NOTES FORMING PART OF THE 105
for the year ended 31 March 2020 FINANCIAL STATEMENTS
st
( in crores)
1 Corporate information
For the year ended For the year ended
st
st
31 March 2020 31 March 2019 Pidilite Industries Limited, together with its subsidiaries are pioneers in consumer and industrial speciality
B Cash Flows from Investing Activities chemicals in India. The equity shares of the Company are listed on BSE Ltd (BSE) and national Stock Exchange PIDILITE ANNUAL REPORT 2019-20
of India Ltd (nSE).
Payments for purchase of Property, Plant and Equipment, (413.61) (201.40) The address of its registered office is Regent Chambers, 7 Floor, Jamnalal Bajaj Marg, 208, nariman Point,
th
Other Intangible Assets & Capital Work-In-Progress
Mumbai 400 021. The address of principal place of business is Ramkrishna Mandir Road, Off Mathuradas Vasanji
Proceeds from disposal of Property, Plant and Equipment & 20.98 42.19 Road, Andheri (E), Mumbai 400 059.
Other Intangible Assets
2 Significant Accounting Policies
net Cash outflow on acquisition/ Investment in Subsidiaries (127.44) (61.04)
2.1 Basis of accounting and preparation of financial statements
Payments to purchase Investments (1,305.53) (2,333.38)
The standalone financial statements of the Company have been prepared in accordance with the Indian
Proceeds on sale of Investments 1,907.30 2,078.81 Accounting Standards (“Ind AS”) prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read
with Companies (Indian Accounting Standards) Rules, 2015, as amended.
Payment towards Share Application Money (18.74) -
The financial statements have been prepared under the historical cost convention except for the
Decrease/ (Increase) in Bank Deposits 53.67 (51.19) following items –
(Increase)/ Decrease in Other Bank Balances (1.40) 5.89 a. Certain Financial Assets/ Liabilities (including derivative instruments) – at Fair value
Interest received 5.93 5.05 b. Employee Stock Options - at Fair value
The financial statements are presented in Indian Rupees (InR) and all values are rounded to the nearest
Dividend received 13.38 26.92 crores, except otherwise indicated.
Net cash generated/ (used) in Investing Activities [B] 134.54 (488.15) 2.2 Business Combination

C Cash Flows from Financing Activities Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred
in a business combination is measured at fair value, which is calculated as the sum of the acquisition-
Proceeds from issue of Equity shares of the Company 0.01 0.01 date fair values of the assets transferred by the Company, liabilities incurred by the Company to the
former owners of the acquiree and the equity interest issued by the Company in exchange of control of
Payment of Lease Liabilities (25.05) - acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
Dividends paid on Equity Shares (including tax thereon) (825.36) (363.47) When the consideration transferred by the Company in a business combination includes assets or
liabilities resulting from a contingent consideration arrangement, the contingent consideration is
Interest paid (7.32) (7.14)
measured at its acquisition-date fair value and included as a part of the consideration transferred
Net cash used in Financing Activities [C] (857.72) (370.60) in a business combination. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding changes against
Net increase/ (decrease) in Cash and Cash Equivalents [A+B+C] 503.78 (5.60) goodwill or capital reserve, as the case maybe. Measurement period adjustments are adjustments that
arise from additional information obtained during the ‘measurement period’ (which cannot exceed
Cash and Cash Equivalents at the beginning of the year 60.24 66.12 one year from the acquisition date) about facts and circumstances that existed at the acquisition
date. Contingent consideration that is classified as an asset or a liability is subsequently (after the
Bank unrealised gain 0.33 0.05
measurement period) remeasured at subsequent reporting dates with the corresponding gain or loss
Cash and Cash Equivalents at the beginning of the year 60.57 66.17 being recognised in Statement of Profit and Loss.
In case of business combinations involving entities under common control, the above policy does
Cash and Cash Equivalents at the end of the year (refer note 14) 564.17 60.24
not apply. Business combinations involving entities under common control are accounted for using
Bank unrealised gain 0.18 0.33 the pooling of interests method. The net assets of the transferor entity or business are accounted
at their carrying amounts on the date of the acquisition subject to necessary adjustments required
Cash and Cash Equivalents at the end of the year 564.35 60.57 to harmonise accounting policies. Retained earnings appearing in the financial statements of the
transferor is aggregated with the corresponding balance appearing in the financial statements of the
Net (decrease)/ increase in Cash and Cash Equivalents 503.78 (5.60) transferee. Identity of the reserves appearing in the financial statements of the transferor is preserved
notes: and appears in the financial statements of the transferee in the same form. Any excess or shortfall of the
consideration paid over the share capital of transferor entity or business is recognised as capital reserve
The above Cash Flow Statement has been prepared under the ‘Indirect Method’ as set out in the Indian Accounting Standard under equity.
(Ind AS 7) - Statement of Cash Flow.
2.3 Goodwill
PIDILITE ANNUAL REPORT 2019-20 For DELOITTE HASKINS & SELLS LLP PRADIP KUMAR MENON Executive Chairman on an acquisition of a business is carried at cost as established at the date of acquisition of the business

Goodwill is measured as the excess of the sum of the consideration transferred over the net of
In terms of our report attached
acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Goodwill arising
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
less accumulated impairment losses, if any.
Chartered Accountants
For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating
N. K. JAIN
BHARAT PURI
M B PAREKH
units (or groups of cash-generating units) that is expected to benefit from the synergies of the
Managing Director
Partner
combination. A cash-generating unit to which goodwill has been allocated is tested for impairment
DIn: 00180955

DIn: 02173566
annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable
PUNEET BANSAL
to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the
Place: Mumbai
Place: Mumbai
unit pro-rata based on the carrying amount of each assets in the unit. Any impairment loss for goodwill
Date: 17 June 2020
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th
Date: 17 June 2020 Chief Financial Officer Company Secretary amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first
104 is recognised directly in Statement of Profit and Loss. An impairment loss recognised for goodwill is not
reversed in subsequent periods.