FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

            [x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
                   For the Fiscal Year ended November 30, 1995

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

                          Commission File Number 0-6953

                             LILLY INDUSTRIES, INC.
         (Exact name of Registrant as specified in its charter)

                  INDIANA                            35-0471010
(State or other jurisdiction of                 (I.R.S. Employer
incorporation or organization)                  Identification No.)

                              733 South West Street
                           Indianapolis, Indiana 46225
               (Address of principal executive offices) (Zip Code)

               Registrant's telephone number, including area code:
                                  317-687-6700

Securities  registered  pursuant to Section 12(b) of the Act:    
                                    None

       Securities registered pursuant to Section 12(g) of the Act:
                        Class A Stock, without par value
                                (Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

                            Page 1 of Pages
                         Exhibit Index on Page





                                       1
<PAGE>


The  aggregate  market value of the voting stock held by  non-affiliates  of the
Registrant as of February 16, 1996 was $271,000,000.

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of February 16, 1996.

         22,166,360 shares of Class A Common Stock, without par value 
            392,264 shares of Class B Common Stock, without par value


                       DOCUMENTS INCORPORATED BY REFERENCE

Part II: Items 5                   Annual Report to Shareholders for Fiscal
 through 8                         Year Ended November 30, 1995

Part III: Items 10                   Proxy Statement for Annual Meeting of
 through 13                         Shareholders to be held April 18, 1996



                                       2
<PAGE>




                                     PART I
Item 1.  Business.

                              Business Description

         Lilly Industries, Inc. (referred to herein as "Lilly" or the "Company")
was incorporated under the laws of the State of Indiana on December 5, 1888. The
Company's  business  is the  formulation,  manufacture  and  sale of  industrial
coatings.  The Company's  products  include liquid and powder coatings used by a
variety of manufacturers to coat wood, metal, plastics and glass substrates.  No
one class of similar  products (other than  protective and decorative  coatings)
accounted for 10% or more of consolidated  revenues of the Company in any of the
last three  fiscal  years,  and the  Company  has only one  reportable  industry
segment.

         On May 7, 1993 Lilly  acquired  assets of ICI  Paints'  North  American
wood,  coil and general  liquid  industrial  coatings  business  (the  "Acquired
Business") in exchange for  $37,500,000 in cash and Lilly's  packaging  coatings
business. The acquired assets included inventory,  certain laboratory equipment,
patents,  trademarks and other related  intellectual  property rights  (together
with a  non-compete  covenant  from ICI).  Lilly did not  purchase  any plant or
equipment (other than the immaterial laboratory equipment referenced above). The
acquired business was integrated into the Company's existing facilities.

          The Company's  principal  products  are: wood coatings for  furniture,
building   products,  and  cabinets;   coil  coatings  for  residential  siding
components,  appliances,   and  metal  buildings;   specialty  coatings  for  a
variety  of  metal   products  and  fiberglass  reinforced   products;   powder
coatings for a variety of metal products; and glass coatings for mirrors.

         The  Company  manufactures  its  products  from a  variety  of  resins,
pigments,  solvents and other  chemicals,  the bulk of which are  obtained  from
petrochemical  feed  stocks.  In  addition,  the Company uses silver and copper.
Under normal  conditions,  all of these raw  materials are available on the open
market, although prices and availability are subject to fluctuation from time to
time.

         Most of the Company's products are sold into industrial markets through
a technical sales force of approximately  280 people.  The Company sold products
to  approximately  3,500 different  industrial  customers  during 1995(1).  Some
products  are also sold  through  retail  outlets  or through  distributors.  No
material part
------------------------
         (1) References in this Form 10-K are references to the Company's fiscal
years ended November 30, 1993, 1994 and 1995.


                                       3
<PAGE>



of the business is dependent on any single customer or a few customers, the loss
of which would have a material adverse effect on the Company.

         The Company has no significant  backlog of orders.  No material part of
the business is subject to  renegotiation  of profit or termination of contracts
or subcontracts at the election of the Government.  Historically,  first quarter
operating results are below operating  results for the second,  third and fourth
quarters due to lower demand for the Company's products during this time period.

         Although the Company holds several patents and trademarks and considers
patent and trademark protection to be important from an overall standpoint, none
are  currently  material  (as a  percent  of total  revenues)  to the  Company's
business  as a whole.  The many  patents and  licenses  for glass  coatings  are
material  to those  specific  products  and new patents  are  continually  being
developed to replace older patents as they expire.

         The  Company  maintains  laboratories  at its major  facilities.  These
laboratories have  traditionally  emphasized the development of product finishes
to meet  specific  requirements  of  customers  and the  maintenance  of quality
throughout the manufacturing  process.  They have also, along with the Corporate
Technology  Center,  engaged in research  directed toward the development of new
products  and  new  manufacturing  and  application  techniques.   Research  and
development expenses were $13.2 million (4.0% of net sales), $13.0 million (3.9%
of net  sales),  and $12.3  million  (4.3% of net  sales)  for the  years  ended
November 30, 1995, 1994 and 1993, respectively.  Future research and development
expenses as a percent of net sales are  anticipated  to remain at current levels
with emphasis on new product development.

         The industrial  coatings  industry is very  competitive.  In the United
States  and  Canada  there are more than 750  manufacturers  of  protective  and
decorative  coatings.  No  one  manufacturer  dominates.   Competition  includes
national  and  small  regional  firms.  While  Lilly  is among  the ten  largest
manufacturers of industrial coatings in the United States (based on annual sales
to industrial customers),  some competitors have far greater financial resources
than the Company.  Price  competition is keen.  Among the larger  manufacturers,
competitive  advantages depend upon the  manufacturer's  ability to purchase the
necessary raw materials in economic quantities,  to keep pace with technological
developments (particularly to meet environmental demands), to develop industrial
coatings  meeting  the  specific  (and  changing)  requirements  of a variety of
customers,  to adhere to strict quality control standards in manufacturing those
coatings, and to make deliveries on time.

         Most of the  Company's  customers  are  located  throughout  the United
States and Canada,  with remaining  customers  concentrated  in Europe and Asia.
During 1995, the Company's  operations  outside the United States  accounted for
approximately 15% of its total net sales.  Information  concerning the Company's
net sales,  pre-tax profit and assets in foreign countries and the United States


                                       4
<PAGE>



for the three years ended  November 30, 1995 is set forth in Note 8 in the Notes
to  Consolidated  Financial  Statements in the  Company's  1995 Annual Report to
Shareholders. Note 8 is incorporated herein by reference.

         The Company  undertakes to comply with  applicable  laws regulating the
discharge  of  materials  into the  environment  or  otherwise  relating  to the
protection  of the  environment  and the Company  believes it is in  substantial
compliance with such federal,  state and local provisions.  Capital expenditures
for this purpose were not material in fiscal 1995, and capital  expenditures for
1996 are not anticipated to be material.

         In addition,  like most  companies in the paint and coatings  industry,
the Company has been named as a potentially  responsible  party (a "PRP") by the
United States Environmental  Protection Agency ("EPA") or similar state agencies
with respect to several  inactive waste  processing  and/or disposal sites where
clean-up  costs have been or may be  incurred  under the  Federal  Comprehensive
Environmental  Response,  Compensation  and  Liability  Act  and  similar  state
statutes.  While the  Company is not  usually a major  contributor  of wastes to
these sites,  each  contributor may face agency  assertions of joint and several
liability.  Generally,  however,  a final  allocation  of costs is made based on
relative  contributions  of wastes to the site.  The Company also,  from time to
time,   conducts  or  participates  in  remedial   investigations  and  clean-up
activities at currently and formerly occupied facilities.

         The Company is  continually  assessing  its  environmental  matters and
establishing  reserves  to handle  these  matters as they arise.  The  Company's
experience to date leads it to believe that it will have continuing expenditures
for compliance  with  provisions  regulating  protection of the  environment and
remediation  efforts  at waste  and  manufacturing  sites.  However,  management
believes  that such  expenditures  will not have a  material  adverse  effect on
operating results or the financial condition of the Company as a whole.

         The Company employs approximately 1,150 people.



                                       5
<PAGE>




                        Executive Officers of the Company

         The executive  officers of the Company,  the age of each, the positions
and offices held by each during the last five years, and the period during which
each has served in such positions and offices are as follows:

     Name of
Executive Officer               Age         Positions and Offices Held

Larry H. Dalton                 48          Vice President - Operations
                                            and Manufacturing since July,
                                            1994; General Manager of the
                                            Company's Indianapolis
                                            Division from prior to 1991
                                            to July, 1994.

William C. Dorris               53          Director since 1989; Vice
                                            President - Corporate
                                            Development since July, 1994;
                                            General Manager of the Company's
                                            High Point Division from prior to
                                            1991 to July, 1994; of the
                                            Company's Templeton Division
                                            from 1991 to July, 1994; and of
                                            the Company's Dallas Division
                                            from 1993 to July, 1994.

Douglas W. Huemme                54         Director since 1990; Chairman,
                                            President and Chief Executive
                                            Officer of the Company since
                                            July, 1991; President and Chief
                                            Operating Officer of the
                                            Company from prior to 1991 to
                                            July, 1991.

Roman J. Klusas                  49         Director since 1988; Vice
                                            President and Chief Financial
                                            Officer, and Secretary of the
                                            Company since prior to 1991.

Kenneth L. Mills                 47         Assistant Secretary since prior
                                            to 1991; Treasurer from prior
                                            to 1991 until October, 1993;
                                            Director of Corporate
                                            Accounting since October, 1993.

         Each executive officer will serve as such until his successor is chosen
and  qualified.  No family  relationships  exist among the  Company's  executive
officers.


                                       6
<PAGE>


Item 2.  Properties.

         The Company has 20 principal  manufacturing  facilities.  The locations
and approximate square footage at those facilities are as follows:

         Location                                  Square Feet

         Indianapolis, Indiana (2 locations)       296,000
         High Point, North Carolina                236,000
         North Kansas City, Missouri               106,000
         London, Ontario, Canada                   103,000
         Bowling Green, Kentucky                    94,000
         Jamestown, New York                        85,000
         Kaohsiung Hsien, Taiwan, R.O.C.            64,000
         Montebello, California                     58,000
         Gardena, California                        52,000
         Paulsboro, New Jersey                      47,000
         Dothan, Alabama                            42,000
         Dallas, Texas                              36,000
         Tampa, Florida                             29,000
         Elkhart, Indiana                           25,000
         Guangdon, China                            25,000
         Selangor, Malaysia                         20,000
         Davie, Florida                             14,000
         Woodbridge, Connecticut                    13,000
         Wallenfels, West Germany                    9,000


All of these principal  facilities  noted above are owned directly or indirectly
by the Company,  except for the  facilities  in Gardena,  California,  Selangor,
Malaysia,  and Guangdon,  China which are leased.  The facilities are of varying
ages, and are well  maintained  and adequate for their present uses.  Additional
productive capacity at these facilities is generally available by increasing the
number of shifts worked.  The Company also owns the Corporate  Technology Center
and office facilities in Indianapolis which contain  approximately 37,000 square
feet.

Item 3.  Legal Proceedings.

         The Company is involved in various  litigation  and other  asserted and
unasserted claims arising in the ordinary course of business, primarily relating
to  product  warranty  and  clean-up  costs  at  independently   operated  waste
treatment/disposal  sites  previously used by the Company or the predecessors of
businesses  purchased  by the  Company.  While the  results of lawsuits or other
proceedings  against the Company cannot be predicted with certainty,  management
believes  that  uninsured  and  unreserved  losses,  if any,  arising from these
proceedings  will  not  have  a  material  adverse  effect  on the  business  or
consolidated financial position of the Company.



                                       7
<PAGE>



Item 4.  Submission of Matters to a Vote of Security Holders.

         No matter was submitted  during the fourth quarter of 1995 to a vote of
security holders through the solicitation of proxies or otherwise.


                                     PART II

Item 5.           Market for Company's Common Equity and Related
                  Stockholder Matters.

         The  information  required by this item is  incorporated  by  reference
herein  from  the  information  included  under  caption  "Dividend Information
and Common Stock Prices" in the Company's 1995 Annual Report to Shareholders and
is included in Exhibit 13. There is no  established  public  trading market for
the Company's Class B Common Stock.

Item 6.           Selected Financial Data.

         The  information  required by this item is  incorporated  by  reference
herein from the information included under the caption "Selected Financial Data"
in  the  Company's  1995  Annual  Report  to  Shareholders  and  is included in
Exhibit 13.

Item 7.           Management's Discussion and Analysis of Results of
                  Operations and Financial Condition.

         The  information  required by this item is  incorporated  by  reference
herein from the information included under the caption "Management's  Discussion
and Analysis of Results of Operations and Financial  Condition" in the Company's
1995 Annual Report to Shareholders and is included in Exhibit 13.

Item 8.           Financial Statements and Supplementary Data.

         The consolidated  financial  statements of the Company are incorporated
by reference  from the  Company's  1995 Annual  Report to  Shareholders  and are
included in Exhibit 13.

Item 9.           Changes in and Disagreements with Accountants on
                  Accounting and Financial Disclosure.

         No  information  is  required to be  disclosed  under this item of this
report pursuant to Instruction 1 to Item 304.




                                       8
<PAGE>




                                    PART III

Item 10.          Directors and Executive Officers of the Company.

         The information  required by this item with respect to directors of the
Company is incorporated  herein by reference from the section entitled "Proposal
I, Election of Directors" of the Company's  definitive Proxy Statement  relating
to its Annual Meeting of Shareholders to be held April 18, 1996. See Part I, for
a list of the  Company's  executive  officers,  and their  ages,  positions  and
offices.

Item 11.          Executive Compensation.

         The  information  required  by this  item  is  incorporated  herein  by
reference from the sections entitled "Cash  Compensation of Executive  Officers"
and  "Non-Cash  Compensation  Arrangements"  of the Company's  definitive  Proxy
Statement  relating  to   its  Annual  Meeting  of  Shareholders  to  be  held 
April 18, 1996.

Item 12.          Security Ownership of Certain Beneficial Owners and
                  Management.

         The  information  required  by this  item  is  incorporated  herein  by
reference from the sections entitled  "Outstanding Shares and Voting Rights" and
"Proposal I, Election of Directors" of the Company's  definitive Proxy Statement
relating to its Annual Meeting of Shareholders to be held April 18, 1996.

Item 13.          Certain Relationships and Related Transactions.

         The information  required by this item, if any, is incorporated  herein
by reference  from the section  entitled  "Proposal I, Election of Directors" of
the  Company's  definitive  Proxy  statement  relating to its Annual  Meeting of
Shareholders to be held April 18, 1996.



                                       9
<PAGE>

                                    PART IV

Item 14.          Exhibits, Financial Statement Schedules, and Reports on
                  Form 8-K.

(a)-1             The following  items,  included in the  Company's  1995 Annual
                  Report to Shareholders,  are incorporated  herein by reference
                  and are included herein in Exhibit 13.

         Report of Independent Auditors

         Consolidated Balance Sheets --
         November 30, 1995 and 1994

         Consolidated  Statements of Income 
         and Retained Earnings -- Years ended
         November 30, 1995, 1994 and 1993

         Consolidated Statements of Cash
         Flows -- Years ended November 30, 1995,
         1994 and 1993

         Notes to Consolidated Financial
         Statements -- November 30, 1995


(a)-2             The following financial statement schedule is filed as a
                  part of this report.


 Schedule

         Valuation and Qualifying Accounts


All other  schedules for which  provision is made in the  applicable  accounting
regulation of the Securities and Exchange  Commission are not required under the
related instructions or are inapplicable, and therefore have been omitted.


                                       10
<PAGE>




(a)-3             Exhibits.

         Exhibits Incorporated by Reference

         2                 Agreement  of Sale and  Purchase  Between The Glidden
                           Company and Lilly  Industries,  Inc.  dated March 25,
                           1993 and  amended  by  Amendment  No. 1 dated  May 7,
                           1993.  This document is  incorporated by reference to
                           Exhibit 2 to the  Company's  Form 8-K Current  Report
                           dated May 7,  1993 and filed  with the SEC on May 20,
                           1993.

         3(a)              The Company's Amended and Restated Articles of
                           Incorporation.  This exhibit is incorporated by 
                           reference to Exhibit 3(a) to the Company's Form 10-K 
                           Annual Report for the fiscal year ended November 
                           30, 1993.

         3(b)              The Company's Code of By-Laws, as amended.  This 
                           exhibit is incorporated by reference to Exhibit 3(b)
                           to the Company's Form 10-K Annual Report for the 
                           fiscal year ended November 30, 1993.

         4                 See Exhibits 10(d), 10(i), 10(j), 10(k) and 10(1).

         *10(a)            Lilly Industries, Inc. Stock Option Plan.  This
                           exhibit is incorporated by reference to Exhibit
                           10(a) to the Company's Form 10-K Annual Report for
                           the fiscal year ended November 30, 1988.

         *10(b)            Lilly   Industries,    Inc.   Unfunded   Supplemental
                           Retirement  Plan (as in effect  November  29,  1990).
                           This exhibit is  incorporated by reference to Exhibit
                           10(b) to the  Company's  Form 10-K Annual  Report for
                           the fiscal year ended November 30, 1990.

         *10(c)            Lilly Industries, Inc. Unfunded Excess Benefit
                           Plan.  This exhibit is  incorporated  by reference to
                           Exhibit  10(c)  to the  Company's  Form  10-K  Annual
                           Report for the fiscal year ended November 30, 1989.

         10(d)             Credit Agreement dated as of November 9, 1992, by and
                           between Lilly Industries,  Inc. and INB National Bank
                           completely  restating the Second Amended and Restated
                           Revolving  Loan  Agreement  dated  May 31,  1991,  as
                           amended.  This document is  incorporated by reference
                           to Exhibit 10(d) to the  Company's  Annual Report for
                           the fiscal year ended November 30, 1992.


                                       11
<PAGE>

         *10(e)            Lilly Industries, Inc. Second Unfunded Supplemental
                           Retirement Plan effective June 4, 1990.  This
                           exhibit is incorporated by reference to Exhibit
                           10(f) to the Company's Form 10-K Annual Report for
                           the fiscal year ended November 30, 1990.

         *10(f)            Lilly Industries, Inc. Termination Benefits Agreement
                           (form of agreement  applicable  to 3 officers).  This
                           exhibit is incorporated by reference to Exhibit 10(g)
                           to the  Company's  Form 10-K  Annual  Report  for the
                           fiscal year ended November 30, 1990.

         *10(g)            Lilly Industries, Inc. 1991 Director Stock Option
                           Plan. This exhibit is incorporated by reference to
                           Exhibit 10(i) to the Company's Form 10-K Annual
                           Report for the fiscal year ended November 30, 1991.

         *10(h)            Lilly Industries, Inc. 1992 Stock Option Plan.
                           This exhibit is  incorporated by reference to Exhibit
                           10(j) to the  Company's  Form 10-K Annual  Report for
                           the fiscal year ended November 30, 1991.

         10(i)             Note Agreement among the Company and Principal
                           Mutual Life Insurance Company and Principal
                           National Life Insurance Company dated as of
                           December 22, 1993.  This exhibit is incorporated by
                           reference to Exhibit 10(k) to the Company's 10-K
                           Annual Report for the fiscal year ended November
                           30, 1993.

         10(j)             Revolving Credit Agreement [1995] between the
                           Company and National City Bank, Indiana dated as of
                           January 27, 1995.  This exhibit is incorporated by
                           reference to Exhibit 10(j) to the Company's 10-K
                           Annual Report for the fiscal year ended November 30,
                           1994.

         10(k)             Revolving Credit Agreement [1995] between the
                           Company and NBD Bank, N.A. dated as of January 27,
                           1995.  This exhibit is incorporated by
                           reference to Exhibit 10(k) to the Company's 10-K
                           Annual Report for the fiscal year ended November 30,
                           1994.

         10(l)             Amended and Restated Revolving Credit Agreement
                           [1995] between the Company and Society National
                           Bank, Indiana  dated as of January 27, 1995.  This 
                           exhibit is incorporated by reference to Exhibit  
                           10(l) to the Company's 10-K Annual Report for the  
                           fiscal year ended November 30, 1994.


         -------------------

         *                 Management contracts and compensatory reports
                           required to be filed pursuant to Item 14(c) of Form
                           10-K.



                                       12
<PAGE>

         Exhibits Filed Herewith:



         10(m)             First Amendment to Revolving Credit Agreement [1995] 
                           between the Company and National City Bank, Indiana 
                           dated as of January 27, 1995.

         10(n)             First Amendment to Revolving Credit Agreement [1995] 
                           between the Company and NBD Bank, N.A. dated as of 
                           January 27, 1995.

         10(o)             First Amendment to Amended and Restated Revolving 
                           Credit Agreement [1995] between the Company and 
                           Society National Bank, Indiana  dated as of 
                           January 27, 1995.

         11                Computation of Earnings Per Share.

         13                Excerpts from the Lilly Industries, Inc. 1995
                           Annual Report.

         21                List of Subsidiaries.

         23                Consent of Ernst & Young LLP.

         27                Financial Data Schedule.

         (b)               No reports on Form 8-K were filed during the fourth
                           quarter of fiscal year 1995.

         (c)               The response to this portion of this item is
                           submitted as a separate section of this report.

         (d)               The response to this portion of this item is
                           submitted as a separate section of this report.



                                       13
<PAGE>



                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange  Act of 1934,  the  Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

Date:             February 23, 1996
                                           LILLY INDUSTRIES, INC.


                                           /s/ Douglas W. Huemme
                                           --------------------------
                                           Douglas W. Huemme,
                                           Chairman, President and
                                           Chief Executive Officer


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
Company and in the capacities and on the dates indicated.

Signature                        Title                      Date

(1)  Principal Executive
     Officer and Director


/s/ Douglas W. Huemme            Chairman, President        February 23, 1996
------------------------         and Chief Executive
Douglas W. Huemme                Officer


(2)  Principal Financial
     Officer and Director


/s/ Roman J. Klusas              Vice President,            February 23, 1996
------------------------         Chief Financial
Roman J. Klusas                  Officer and Secretary


(3)  Director of Corporate
     Accounting and Principal
     Accounting Officer


/s/ Kenneth L. Mills             Director of Cor-           February 23, 1996
------------------------         porate Accounting
Kenneth L. Mills                 and Assistant Secretary



                                       14
<PAGE>




(4)  A majority of the
     Board of Directors


/s/ H. J. Baker
-------------------------
H. J. (Jack) Baker            Director                 February 23, 1996


/s/ William C. Dorris
-------------------------
William C. Dorris             Director                 February 23, 1996


/s/ Robert H. McKinney
-------------------------
Robert H. McKinney            Director                 February 23, 1996


/s/ Harry Morrison, Ph.D.
-------------------------
Harry Morrison, Ph.D.         Director                 February 23, 1996


/s/ John D. Peterson
-------------------------
John D. Peterson              Director                 February 23, 1996



/s/ Thomas E. Reilly, Jr.
--------------------------
Thomas E. Reilly, Jr.         Director                 February 23, 1996



/s/ Van P. Smith
--------------------------
Van P. Smith                  Director                 February 23, 1996



/s/ Richard A. Steele
--------------------------
Richard A. Steele             Director                 February 23, 1996






                                       15
<PAGE>

<TABLE>
<CAPTION>

                                               SCHEDULE II
                                     VALUATION AND QUALIFYING ACCOUNTS
                                   LILLY INDUSTRIES, INC. AND SUBSIDIARIES




COL. A                              COL. B               COL. C                 COL. D          COL. E
                                                        Additions
Description                         Balance at       (1)          (2)           Deductions-     Balance
                                    Beginning    Charged to    Charged to       Describe        at End of
                                    of Period    Costs and     Other Accounts                   Period
                                                 Expenditures  -Describe

<S>                                <C>           <C>           <C>              <C>             <C>   
Year ended  November  30,  1995:
 Reserves and  allowances
 deducted  from asset
 accounts:
   Allowance for doubtful
     accounts receivable            $1,758,769  $   600,717    $      -          $  308,564(A)    $2,050,922
                                    ==========  ===========     ===========       ============    ==========

Year ended  November  30,  1994:
 Reserves and  allowances
 deducted  from asset
 accounts:
   Allowance for doubtful
     accounts receivable            $1,353,042  $790,422      $    -           $384,695 (A)      $1,758,769
                                    ==========  ===========   ==============   ============      ==========

Year ended  November  30,  1993: 
 Reserve  and  allowances
 deducted  from asset
 accounts:
   Allowance for doubtful
     accounts receivable            $1,193,639  $827,912      $    -            $668,509 (A)      $1,353,042
                                    ==========  ===========   ==============    ============      ==========

</TABLE>


Note A - Uncollectible accounts receivable charged off, net of recoveries.


                                       16