Pearl Global Limited
Annual Report 2020

Plain-text annual report

(cid:50)(cid:48)(cid:50)(cid:48) (cid:65)(cid:78)(cid:78)(cid:85)(cid:65)(cid:76)(cid:32)(cid:82)(cid:69)(cid:80)(cid:79)(cid:82)(cid:84) (cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:71)(cid:108)(cid:111)(cid:98)(cid:97)(cid:108)(cid:32)(cid:73)(cid:110)(cid:100)(cid:117)(cid:115)(cid:116)(cid:114)(cid:105)(cid:101)(cid:115)(cid:32)(cid:76)(cid:105)(cid:109)(cid:105)(cid:116)(cid:101)(cid:100) (cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:71)(cid:108)(cid:111)(cid:98)(cid:97)(cid:108)(cid:32)(cid:73)(cid:110)(cid:100)(cid:117)(cid:115)(cid:116)(cid:114)(cid:105)(cid:101)(cid:115)(cid:32)(cid:76)(cid:105)(cid:109)(cid:105)(cid:116)(cid:101)(cid:100) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:45) (cid:66)(cid:111)(cid:97)(cid:114)(cid:100)(cid:32)(cid:111)(cid:102)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114)(cid:115) (cid:77)(cid:114)(cid:46)(cid:32)(cid:68)(cid:101)(cid:101)(cid:112)(cid:97)(cid:107)(cid:32)(cid:83)(cid:101)(cid:116)(cid:104) (cid:77)(cid:114)(cid:46)(cid:32)(cid:80)(cid:117)(cid:108)(cid:107)(cid:105)(cid:116)(cid:32)(cid:83)(cid:101)(cid:116)(cid:104) (cid:77)(cid:114)(cid:115)(cid:46)(cid:32)(cid:83)(cid:104)(cid:105)(cid:102)(cid:97)(cid:108)(cid:108)(cid:105)(cid:32)(cid:83)(cid:101)(cid:116)(cid:104) (cid:77)(cid:114)(cid:46)(cid:32)(cid:85)(cid:109)(cid:97)(cid:32)(cid:83)(cid:104)(cid:97)(cid:110)(cid:107)(cid:97)(cid:114)(cid:32)(cid:75)(cid:97)(cid:117)(cid:115)(cid:104)(cid:105)(cid:107) (cid:77)(cid:114)(cid:46)(cid:32)(cid:83)(cid:104)(cid:97)(cid:105)(cid:108)(cid:101)(cid:115)(cid:104)(cid:32)(cid:75)(cid:117)(cid:109)(cid:97)(cid:114) (cid:77)(cid:114)(cid:46)(cid:32)(cid:67)(cid:104)(cid:105)(cid:116)(cid:116)(cid:114)(cid:97)(cid:110)(cid:106)(cid:97)(cid:110)(cid:32)(cid:68)(cid:117)(cid:97) (cid:77)(cid:114)(cid:46)(cid:32)(cid:82)(cid:97)(cid:106)(cid:101)(cid:110)(cid:100)(cid:114)(cid:97)(cid:32)(cid:75)(cid:117)(cid:109)(cid:97)(cid:114)(cid:32)(cid:65)(cid:110)(cid:101)(cid:106)(cid:97) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:110)(cid:105)(cid:108)(cid:32)(cid:78)(cid:97)(cid:121)(cid:97)(cid:114) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:98)(cid:104)(cid:105)(cid:115)(cid:104)(cid:101)(cid:107)(cid:32)(cid:71)(cid:111)(cid:121)(cid:97)(cid:108) (cid:77)(cid:114)(cid:115)(cid:46)(cid:32)(cid:77)(cid:97)(cid:100)(cid:104)(cid:117)(cid:108)(cid:105)(cid:107)(cid:97)(cid:32)(cid:66)(cid:104)(cid:117)(cid:112)(cid:97)(cid:116)(cid:107)(cid:97)(cid:114) (cid:67)(cid:104)(cid:105)(cid:101)(cid:102)(cid:32)(cid:70)(cid:105)(cid:110)(cid:97)(cid:110)(cid:99)(cid:105)(cid:97)(cid:108)(cid:32)(cid:79)(cid:102)(cid:102)(cid:105)(cid:99)(cid:101)(cid:114) (cid:77)(cid:114)(cid:46)(cid:32)(cid:75)(cid:97)(cid:115)(cid:104)(cid:109)(cid:105)(cid:114)(cid:32)(cid:83)(cid:105)(cid:110)(cid:103)(cid:104)(cid:32)(cid:82)(cid:97)(cid:116)(cid:104)(cid:111)(cid:117)(cid:114) (cid:67)(cid:111)(cid:109)(cid:112)(cid:97)(cid:110)(cid:121)(cid:32)(cid:83)(cid:101)(cid:99)(cid:114)(cid:101)(cid:116)(cid:97)(cid:114)(cid:121) (cid:77)(cid:114)(cid:46)(cid:32)(cid:83)(cid:97)(cid:110)(cid:100)(cid:101)(cid:101)(cid:112)(cid:32)(cid:83)(cid:97)(cid:98)(cid:104)(cid:97)(cid:114)(cid:119)(cid:97)(cid:108) (cid:65)(cid:117)(cid:100)(cid:105)(cid:116)(cid:32)(cid:67)(cid:111)(cid:109)(cid:109)(cid:105)(cid:116)(cid:116)(cid:101)(cid:101) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:110)(cid:105)(cid:108)(cid:32)(cid:78)(cid:97)(cid:121)(cid:97)(cid:114) (cid:77)(cid:114)(cid:115)(cid:46)(cid:32)(cid:77)(cid:97)(cid:100)(cid:104)(cid:117)(cid:108)(cid:105)(cid:107)(cid:97)(cid:32)(cid:66)(cid:104)(cid:117)(cid:112)(cid:97)(cid:116)(cid:107)(cid:97)(cid:114) (cid:77)(cid:114)(cid:46)(cid:32)(cid:82)(cid:97)(cid:106)(cid:101)(cid:110)(cid:100)(cid:114)(cid:97)(cid:32)(cid:75)(cid:117)(cid:109)(cid:97)(cid:114)(cid:32)(cid:65)(cid:110)(cid:101)(cid:106)(cid:97) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:98)(cid:104)(cid:105)(cid:115)(cid:104)(cid:101)(cid:107)(cid:32)(cid:71)(cid:111)(cid:121)(cid:97)(cid:108) (cid:78)(cid:111)(cid:109)(cid:105)(cid:110)(cid:97)(cid:116)(cid:105)(cid:111)(cid:110)(cid:32)(cid:97)(cid:110)(cid:100)(cid:32)(cid:82)(cid:101)(cid:109)(cid:117)(cid:110)(cid:101)(cid:114)(cid:97)(cid:116)(cid:105)(cid:111)(cid:110)(cid:32)(cid:67)(cid:111)(cid:109)(cid:109)(cid:105)(cid:116)(cid:116)(cid:101)(cid:101) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:98)(cid:104)(cid:105)(cid:115)(cid:104)(cid:101)(cid:107)(cid:32)(cid:71)(cid:111)(cid:121)(cid:97)(cid:108) (cid:77)(cid:114)(cid:46)(cid:32)(cid:68)(cid:101)(cid:101)(cid:112)(cid:97)(cid:107)(cid:32)(cid:83)(cid:101)(cid:116)(cid:104) (cid:77)(cid:114)(cid:46)(cid:32)(cid:82)(cid:97)(cid:106)(cid:101)(cid:110)(cid:100)(cid:114)(cid:97)(cid:32)(cid:75)(cid:117)(cid:109)(cid:97)(cid:114)(cid:32)(cid:65)(cid:110)(cid:101)(cid:106)(cid:97) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:110)(cid:105)(cid:108)(cid:32)(cid:78)(cid:97)(cid:121)(cid:97)(cid:114) (cid:83)(cid:116)(cid:97)(cid:107)(cid:101)(cid:104)(cid:111)(cid:108)(cid:100)(cid:101)(cid:114)(cid:32)(cid:82)(cid:101)(cid:108)(cid:97)(cid:116)(cid:105)(cid:111)(cid:110)(cid:115)(cid:104)(cid:105)(cid:112)(cid:32)(cid:67)(cid:111)(cid:109)(cid:109)(cid:105)(cid:116)(cid:116)(cid:101)(cid:101) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:110)(cid:105)(cid:108)(cid:32)(cid:78)(cid:97)(cid:121)(cid:97)(cid:114) (cid:77)(cid:114)(cid:46)(cid:32)(cid:80)(cid:117)(cid:108)(cid:107)(cid:105)(cid:116)(cid:32)(cid:83)(cid:101)(cid:116)(cid:104) (cid:77)(cid:114)(cid:46)(cid:32)(cid:82)(cid:97)(cid:106)(cid:101)(cid:110)(cid:100)(cid:114)(cid:97)(cid:32)(cid:75)(cid:117)(cid:109)(cid:97)(cid:114)(cid:32)(cid:65)(cid:110)(cid:101)(cid:106)(cid:97) (cid:67)(cid:111)(cid:114)(cid:112)(cid:111)(cid:114)(cid:97)(cid:116)(cid:101)(cid:32)(cid:83)(cid:111)(cid:99)(cid:105)(cid:97)(cid:108)(cid:32)(cid:82)(cid:101)(cid:115)(cid:112)(cid:111)(cid:110)(cid:115)(cid:105)(cid:98)(cid:105)(cid:108)(cid:105)(cid:116)(cid:121)(cid:32)(cid:67)(cid:111)(cid:109)(cid:109)(cid:105)(cid:116)(cid:116)(cid:101)(cid:101) (cid:77)(cid:114)(cid:115)(cid:46)(cid:32)(cid:77)(cid:97)(cid:100)(cid:104)(cid:117)(cid:108)(cid:105)(cid:107)(cid:97)(cid:32)(cid:66)(cid:104)(cid:117)(cid:112)(cid:97)(cid:116)(cid:107)(cid:97)(cid:114) (cid:77)(cid:114)(cid:46)(cid:32)(cid:80)(cid:117)(cid:108)(cid:107)(cid:105)(cid:116)(cid:32)(cid:83)(cid:101)(cid:116)(cid:104) (cid:77)(cid:114)(cid:46)(cid:32)(cid:65)(cid:110)(cid:105)(cid:108)(cid:32)(cid:78)(cid:97)(cid:121)(cid:97)(cid:114) (cid:65)(cid:117)(cid:100)(cid:105)(cid:116)(cid:111)(cid:114)(cid:115) (cid:77)(cid:47)(cid:115)(cid:32)(cid:66)(cid:46)(cid:82)(cid:46)(cid:32)(cid:71)(cid:117)(cid:112)(cid:116)(cid:97)(cid:32)(cid:38)(cid:32)(cid:67)(cid:111)(cid:46) (cid:67)(cid:104)(cid:97)(cid:114)(cid:116)(cid:101)(cid:114)(cid:101)(cid:100)(cid:32)(cid:65)(cid:99)(cid:99)(cid:111)(cid:117)(cid:110)(cid:116)(cid:97)(cid:110)(cid:116)(cid:115) (cid:75)(cid:45)(cid:53)(cid:53)(cid:44)(cid:32)(cid:67)(cid:111)(cid:110)(cid:110)(cid:97)(cid:117)(cid:103)(cid:104)(cid:116)(cid:32)(cid:67)(cid:105)(cid:114)(cid:99)(cid:117)(cid:115) (cid:78)(cid:101)(cid:119)(cid:32)(cid:68)(cid:101)(cid:108)(cid:104)(cid:105)(cid:45)(cid:49)(cid:49)(cid:48)(cid:48)(cid:48)(cid:49) (cid:66)(cid:97)(cid:110)(cid:107)(cid:101)(cid:114)(cid:115) (cid:80)(cid:117)(cid:110)(cid:106)(cid:97)(cid:98)(cid:32)(cid:78)(cid:97)(cid:116)(cid:105)(cid:111)(cid:110)(cid:97)(cid:108)(cid:32)(cid:66)(cid:97)(cid:110)(cid:107) (cid:83)(cid:116)(cid:97)(cid:110)(cid:100)(cid:97)(cid:114)(cid:100)(cid:32)(cid:67)(cid:104)(cid:97)(cid:114)(cid:116)(cid:101)(cid:114)(cid:101)(cid:100)(cid:32)(cid:66)(cid:97)(cid:110)(cid:107) (cid:85)(cid:67)(cid:79)(cid:32)(cid:66)(cid:97)(cid:110)(cid:107) (cid:83)(cid:116)(cid:97)(cid:116)(cid:101)(cid:32)(cid:66)(cid:97)(cid:110)(cid:107)(cid:32)(cid:111)(cid:102)(cid:32)(cid:73)(cid:110)(cid:100)(cid:105)(cid:97) (cid:82)(cid:66)(cid:76)(cid:32)(cid:66)(cid:97)(cid:110)(cid:107)(cid:32)(cid:76)(cid:105)(cid:109)(cid:105)(cid:116)(cid:101)(cid:100) (cid:72)(cid:68)(cid:70)(cid:67)(cid:32)(cid:66)(cid:97)(cid:110)(cid:107)(cid:32)(cid:76)(cid:105)(cid:109)(cid:105)(cid:116)(cid:101)(cid:100) (cid:67)(cid:104)(cid:97)(cid:105)(cid:114)(cid:109)(cid:97)(cid:110) (cid:86)(cid:105)(cid:99)(cid:101)(cid:45)(cid:67)(cid:104)(cid:97)(cid:105)(cid:114)(cid:109)(cid:97)(cid:110)(cid:32)(cid:38)(cid:32)(cid:77)(cid:97)(cid:110)(cid:97)(cid:103)(cid:105)(cid:110)(cid:103)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:87)(cid:104)(cid:111)(cid:108)(cid:101)(cid:45)(cid:84)(cid:105)(cid:109)(cid:101)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:87)(cid:104)(cid:111)(cid:108)(cid:101)(cid:45)(cid:84)(cid:105)(cid:109)(cid:101)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:87)(cid:104)(cid:111)(cid:108)(cid:101)(cid:45)(cid:84)(cid:105)(cid:109)(cid:101)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:78)(cid:111)(cid:110)(cid:45)(cid:101)(cid:120)(cid:101)(cid:99)(cid:117)(cid:116)(cid:105)(cid:118)(cid:101)(cid:32)(cid:73)(cid:110)(cid:100)(cid:101)(cid:112)(cid:101)(cid:110)(cid:100)(cid:101)(cid:110)(cid:116)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:78)(cid:111)(cid:110)(cid:45)(cid:101)(cid:120)(cid:101)(cid:99)(cid:117)(cid:116)(cid:105)(cid:118)(cid:101)(cid:32)(cid:73)(cid:110)(cid:100)(cid:101)(cid:112)(cid:101)(cid:110)(cid:100)(cid:101)(cid:110)(cid:116)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:78)(cid:111)(cid:110)(cid:45)(cid:101)(cid:120)(cid:101)(cid:99)(cid:117)(cid:116)(cid:105)(cid:118)(cid:101)(cid:32)(cid:73)(cid:110)(cid:100)(cid:101)(cid:112)(cid:101)(cid:110)(cid:100)(cid:101)(cid:110)(cid:116)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:78)(cid:111)(cid:110)(cid:45)(cid:101)(cid:120)(cid:101)(cid:99)(cid:117)(cid:116)(cid:105)(cid:118)(cid:101)(cid:32)(cid:73)(cid:110)(cid:100)(cid:101)(cid:112)(cid:101)(cid:110)(cid:100)(cid:101)(cid:110)(cid:116)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:78)(cid:111)(cid:110)(cid:45)(cid:101)(cid:120)(cid:101)(cid:99)(cid:117)(cid:116)(cid:105)(cid:118)(cid:101)(cid:32)(cid:73)(cid:110)(cid:100)(cid:101)(cid:112)(cid:101)(cid:110)(cid:100)(cid:101)(cid:110)(cid:116)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:67)(cid:104)(cid:97)(cid:105)(cid:114)(cid:109)(cid:97)(cid:110) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:67)(cid:104)(cid:97)(cid:105)(cid:114)(cid:109)(cid:97)(cid:110) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:67)(cid:104)(cid:97)(cid:105)(cid:114)(cid:109)(cid:97)(cid:110) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:67)(cid:104)(cid:97)(cid:105)(cid:114)(cid:112)(cid:101)(cid:114)(cid:115)(cid:111)(cid:110) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:77)(cid:101)(cid:109)(cid:98)(cid:101)(cid:114)(cid:32)(cid:68)(cid:105)(cid:114)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114) (cid:82)(cid:101)(cid:103)(cid:105)(cid:115)(cid:116)(cid:101)(cid:114)(cid:101)(cid:100)(cid:32)(cid:79)(cid:102)(cid:102)(cid:105)(cid:99)(cid:101) (cid:34)(cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:72)(cid:111)(cid:117)(cid:115)(cid:101)(cid:34) (cid:65)(cid:45)(cid:51)(cid:44)(cid:32)(cid:67)(cid:111)(cid:109)(cid:109)(cid:117)(cid:110)(cid:105)(cid:116)(cid:121)(cid:32)(cid:67)(cid:101)(cid:110)(cid:116)(cid:114)(cid:101) (cid:78)(cid:97)(cid:114)(cid:97)(cid:105)(cid:110)(cid:97)(cid:32)(cid:73)(cid:110)(cid:100)(cid:117)(cid:115)(cid:116)(cid:114)(cid:105)(cid:97)(cid:108)(cid:32)(cid:65)(cid:114)(cid:101)(cid:97)(cid:44)(cid:32)(cid:80)(cid:104)(cid:97)(cid:115)(cid:101)(cid:45)(cid:73)(cid:73) (cid:78)(cid:101)(cid:119)(cid:32)(cid:68)(cid:101)(cid:108)(cid:104)(cid:105)(cid:45)(cid:49)(cid:49)(cid:48)(cid:48)(cid:50)(cid:56) (cid:67)(cid:111)(cid:114)(cid:112)(cid:111)(cid:114)(cid:97)(cid:116)(cid:101)(cid:32)(cid:79)(cid:102)(cid:102)(cid:105)(cid:99)(cid:101) (cid:34)(cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:84)(cid:111)(cid:119)(cid:101)(cid:114)(cid:34) (cid:80)(cid:108)(cid:111)(cid:116)(cid:32)(cid:78)(cid:111)(cid:46)(cid:32)(cid:53)(cid:49)(cid:44)(cid:32)(cid:83)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114)(cid:45)(cid:51)(cid:50) (cid:71)(cid:117)(cid:114)(cid:117)(cid:103)(cid:114)(cid:97)(cid:109)(cid:45)(cid:49)(cid:50)(cid:50)(cid:48)(cid:48)(cid:49)(cid:40)(cid:72)(cid:97)(cid:114)(cid:121)(cid:97)(cid:110)(cid:97)(cid:41) Pearl Global Industries Limited Annual Report 2019-20 1 CONTENTS t & Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttt t & F t & F SSSSStttttaaaaatttttuuuuutttttooooorrrrry Ry Ry Ry Ry Reeeeepppppooooorrrrrt & F t & F Notice Directors’ Report Corporate Governance Management Discussion and Analysis Business Responsibility Report CoCoCoCoConnnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancialslslslsls Independent Auditors’ Report Consolidated Balance Sheet Consolidated Statement of Profit & Loss Consolidated Cash Flow Statement Notes SSSSStttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancialslslslsls Independent Auditors’ Report Balance Sheet Statement of Profit & Loss Cash Flow Statement Notes 02 21 55 70 75 85 94 95 97 99 164 174 175 177 179 2 Pearl Global Industries Limited Annual Report 2019-20 Notice PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD Registered Office: A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028 Corporate Office: Plot No.51, Sector-32, Gurugram-122001(Haryana) Tel: 0124-4651000, Website: www.pearlglobal.com; e-mail: investor.pgil@pearlglobal.com CIN: L74899DL1989PLC036849 NNNNNOOOOOTTTTTIIIIICCCCCE TE TE TE TE TO MO MO MO MO MEEEEEMMMMMBBBBBEEEEERRRRRSSSSS Notice is hereby given that the 31st Annual General Meeting of the Members of Pearl Global Industries Limited will be held on Thursday, November 26, 2020 at 11:30 A.M. through Video Conferencing ("VC")/other Audio Visual Means ("OAVM") ("hereinafter referred to as "electronic mode") to transact the following businesses: OOOOORRRRRDDDDDIIIIINNNNNAAAAARRRRRY BY BY BY BY BUUUUUSSSSSIIIIINNNNNEEEEESSSSSSSSSS 1. To receive, consider and adopt the Standalone and Consolidated Audited Financial Statements of the Company for the financial year ended March 31, 2020 including the Reports of the Board of Directors and Auditors thereon. 2. To appoint a Director in place of Mrs. Shifalli Seth (DIN 01388430), who retires by rotation and being eligible, offers herself for re-appointment. SSSSSPPPPPECECECECECIIIIIAAAAAL BL BL BL BL BUUUUUSSSSSIIIIINNNNNEEEEESSSSSSSSSS 3.3.3.3.3. TTTTTO A O AO APPPPP PPPPP OOOOO IIIII NNNNN T MT MT MT MT MRRRRR S. M O AO A S. M S. M S. MAAAAA DDDDD H UH UH UH UH ULLLLL IIIII KKKKK AAAAA S. M BBBBB H UH UH UH UH UPPPPPAAAAATTTTT KKKKK AAAAA R (DR (DR (DR (DR (DIIIII N 08712718) A N 08712718) A N 08712718) A N 08712718) AS AS AS AS AS ANNNNN N 08712718) A IIIIINNNNNDDDDDEEEEEPPPPPEEEEENNNNNDDDDDEEEEENNNNNT DT DT DT DT DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR To consider and if thought fit, to pass with or without modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAAT T T T T pursuant to the provisions of Sections 149, 150 and 152 and other applicable provisions, if any, of the Companies Act, 2013 ("the Act"), and the rules made thereunder, read with Schedule IV of the Act and Regulation 16(1)(b) and 17(1)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") (including any statutory modification(s) or re-enactment thereof for the time being in force), Mrs. Madhulika Bhupatkar (DIN 08712718), who was appointed as an Additional Director of the Company with effect from March 18, 2020, pursuant to Section 161(1) of the Act and Article 86 of the Articles of Association of the Company and who has submitted the declaration that she meets the criteria of Independence as provided under the Act and the Listing Regulations and who holds office upto the date of this Annual General Meeting and in respect of whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing her candidature for the office of Director, be and is hereby appointed as an Independent Director of the Company to hold office for a term of upto five (5) consecutive years with effect March 18, 2020 to March 17, 2025, not liable to retire by rotation. RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT the Board of Directors be and is hereby authorized to do all such acts, deeds and things as may be necessary to give effect to this Resolution." 4.4.4.4.4. TTTTTO AO AO AO AO APPPPP PPPPP OOOOO IIIII NNNNN T MT MT MT MT MRRRRR . U. U. U. U. UMMMMM A SA SA SA SA SHHHHH AAAAA NNNNN KKKKK AAAAA RRRRR KKKKKAAAAAUUUUUSSSSSHHHHHIIIIIK (DK (DK (DK (DK (DIIIIIN 06867819) A N 06867819) A N 06867819) A N 06867819) AS DS DS DS DS DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR N 06867819) A To consider and if thought fit, to pass with or without modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT Mr. Uma Shankar Kaushik (DIN 06867819), who was appointed as an Additional Director of the Company with effect from July 28, 2020 under Section 161(1) of the Companies Act, 2013 ("the Act") and Article 86 of the Articles of Association of the Company by the Board of Directors and who holds office upto the date of this Annual General Meeting and who is eligible for appointment, be and is hereby appointed as Director of the Company, liable to retire by rotation." RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT the Board of Directors be and is hereby authorized to do all such acts, deeds and things as may be necessary to give effect to this Resolution." 5.5.5.5.5. TTTTTO AO AO AO AO APPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRR . S. S. S. S. SHHHHHAAAAAIIIIILLLLLEEEEESSSSSH KH KH KH KH KUUUUUMMMMMAAAAAR (DR (DR (DR (DR (DIIIIINNNNN 08897225) AS DS DS DS DS DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR 08897225) A 08897225) A 08897225) A 08897225) A To consider and if thought fit, to pass with or without modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT Mr. Shailesh Kumar (DIN 08897225), who was appointed as an Additional Director of the Company with effect from October 07, 2020 under Section 161(1) of the Companies Act, 2013 Pearl Global Industries Limited Annual Report 2019-20 3 Notice (contd...) ("the Act") and Article 86 of the Articles of Association of the Company by the Board of Directors and who holds office upto the date of this Annual General Meeting and who is eligible for appointment be and is hereby appointed as Director of the Company, liable to retire by rotation." RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT the Board of Directors be and is hereby authorized to do all such acts, deeds and things as may be necessary to give effect to this Resolution." 6.6.6.6.6. TTTTTO AO AO AO AO APPPPP PPPPP OOOOO IIIII NNNNN T MT MT MT MT MRRRRR . U. U. U. U. UMMMMM A SA SA SA SA SHHHHH AAAAA NNNNN KKKKK AAAAA RRRRR KKKKKAAAAAUUUUUSSSSSHHHHHIIIIIK (DK (DK (DK (DK (DIIIIIN 06867819) A N 06867819) A N 06867819) A N 06867819) AS A WS A WS A WS A WS A WHHHHH OOOOOLLLLLEEEEE ----- N 06867819) A TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR To consider and if thought fit, to pass with or without modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAAT T T T T pursuant to the provisions of Sections 2(94), 196, 197 and 203 read with Schedule V and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 (including any statutory modification(s), enactment(s) or re-enactment(s) thereof for the time being in force), Mr. Uma Shankar Kaushik (DIN 06867819) be and is hereby appointed as Whole-Time Director of the Company for a period of Three years commencing from July 28, 2020." RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Uma Shankar Kaushik will be entitled for the following remuneration per month as Whole-Time Director of the Company: (((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````))))) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs 1,03,334/- Basic Pay 51,667/- House Rent Allowance 30,927/- Special Allowance Conveyance 1,600/- Provident Fund & Gratuity As per Company's policy He will be provided reimbursement of actual business expenses of Conveyance including Driver and Entertainment reimbursement. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Uma Shankar Kaushik, Whole-Time Director shall be responsible for HR & Administration functions of woven division of the Company and also perform such other duties and services as shall from time to time be entrusted to him by the Board of Directors of the Company." RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT the Board of Directors be and is hereby authorized to do all such acts, deeds and things as may be necessary to give effect to this Resolution." 7.7.7.7.7. TTTTTO AO AO AO AO APPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRR . S. S. S. S. SHHHHHAAAAAIIIIILLLLLEEEEESSSSSH KH KH KH KH KUUUUUMMMMMAAAAAR (DR (DR (DR (DR (DIIIIINNNNN 08897225) AS WS WS WS WS WHHHHHOOOOOLLLLLEEEEE-----TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR 08897225) A 08897225) A 08897225) A 08897225) A To consider and if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT pursuant to the provisions of Sections 2(94), 196, 197 and 203 read with Schedule V and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 (including any statutory modification(s), enactment(s) or re-enactment(s) thereof for the time being in force), Mr. Shailesh Kumar (DIN 08897225) be and is hereby appointed as Whole- Time Director of the Company for a period of Three years commencing from October 07, 2020." RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Shailesh Kumar will be entitled for the following remuneration per month as Whole-Time Director of the Company: (((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````))))) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs 80,000/- Basic Pay 40,000/- House Rent Allowance Special Allowance 30,000/- Provident Fund & Gratuity As per Company's policy He will be provided reimbursement of actual business expenses of conveyance including Driver. RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT Mr. Shailesh Kumar, Whole-Time Director shall be responsible for HR functions of Knits division of the Company and also perform such other duties and services as shall from time to time be entrusted to him by the Board of Directors of the Company." RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT the Board of Directors be and is hereby authorized to do all such acts, deeds and things as may be necessary to give effect to this Resolution." 8.8.8.8.8. TTTTTO O O O O APPPPP PPPPP RRRRRO VO VO VO VO VE E E A A E E A A INNNNN I I I I RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON ON ON ON ON OF MF MF MF MF MRRRRR . V. V. V. V. VIIIIINNNNNOOOOOD VD VD VD VD VAAAAAIIIIISSSSSHHHHH N 01945795), WHHHHHOOOOOLLLLLEEEEE-----TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR N 01945795), W (D(D(D(D(DIIIIIN 01945795), W N 01945795), W N 01945795), W REEEEEVVVVV IIIII SSSSS IIIII OOOOO N N N R R N N R R To consider and if thought fit, to pass with or without 4 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) modification(s) the following resolution as an Ordinary Resolution: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT in partial modification of earlier Resolution passed by the shareholders at the 30th Annual General Meeting of the Company held on September 24, 2019 and pursuant to the provisions of Sections 196, 197, and 203 read with Schedule V and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 (including any statutory modification(s), enactment(s) or re- enactment(s) thereof for the time being in force), approval of members of the company be and is hereby accorded for revision in the monthly remuneration of Mr. Vinod Vaish, Whole-time Director of the Company with effect from October 01, 2019 to April 30, 2020, as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Basic Pay House Rent Allowance Special Allowance Provident Fund & Gratuity (((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````))))) 68,890/- 34,440/- 44,489/- As per Company's rules He would be provided a Company maintained Car with driver and a mobile phone for official purpose, and also be entitled for reimbursement of actual business expenses. RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT the Board of Directors be and is hereby authorized to do all such acts and deeds as may be necessary to give effect to this Resolution." 9.9.9.9.9. TTTTTO O O O O APPPPP PPPPP RRRRRO VO VO VO VO VE E E A A E E A A REEEEE LLLLL AAAAATTTTT EEEEE D D D R R PAAAAA RRRRRTTTTT YYYYY P P D P D R R P E FIE FINNNNNAAAAA NNNNN CCCCC IIIIIAAAAA LLLLL E FIE FI TTTTT RRRRR AAAAA N SN SN SN SN SAAAAACCCCCTTTTT IIIIIOOOOO NS FNS FNS FNS FNS FOOOOO R TR TR TR TR THHHHH E FI YYYYYEEEEEAAAAAR 2021-2022 R 2021-2022 R 2021-2022 R 2021-2022 R 2021-2022 To consider and if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT pursuant to Section 188 and any other applicable provisions of the Companies Act, 2013 and the rules made there under, Regulation 23 and any other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (including any statutory modification(s) or re- enactment thereof for the time being in force), and pursuant to the consent of the Audit Committee and the Board of Directors, the approval of the members of the Company be and is hereby accorded for entering into contract or arrangement with the related parties as defined under the Companies Act, 2013 and the Rules made there under, namely Norp Knit Industries Limited, PT Pinnacle Apparels, Pearl Global (HK) Limited, Pearl Global Fareast Limited, DSSP Global Limited, PDS Multinational Fashions Limited, Norwest Industries Limited, Pearl Grass Creations Limited, Prudent Fashions Limited, Vin Pearl Global Vietnam Limited, Pearl Global F.Z.E., PGIC Investment limited, Pearl Global (Chang Zhou) Textile Technology Co. Limited, and Pearl Global Vietnam Co. Limited, for the financial year 2021-22, as per details and terms & conditions as set out under the Explanatory Statement annexed to this Notice." RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D FD FD FD FD FUUUUU RRRRRTTTTT HHHHH EEEEE R TR TR TR TR THHHHH AAAAATTTTT the Board of Directors be and is hereby authorized to perform and execute all such acts, deeds, matters and things including delegate such authority, as may be deemed necessary, proper or expedient to give effect to this resolution and for the matters connected herewith or incidental hereto." By order of the Board of Directors l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrriesiesiesiesies LLLLLiiiiimmmmmitititititeeeeeddddd for PPPPPeaeaeaeaearrrrrl Glo l Glo l Glo l Glo Place: Gurugram Date: October 07, 2020 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll) CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy NONONONONOTTTTTEEEEESSSSS::::: 1. The statement pursuant to Section 102 of the Companies Act, 2013 (the Act) is annexed hereunder and forms part of the Notice. As required under Secretarial Standard-2 and regulations 26(4) and 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the relevant information of Directors is enclosed as Annexure-1. 2. The Register of Members and Share Transfer Books of the Company will remain closed from Friday, November 20, 2020 to Thursday, November 26, 2020 (both days inclusive). 3. In view of the continuing Covid-19 pandemic, the Ministry of Corporate Affairs ("MCA") has vide its Circular No. 20 dated May 5, 2020 read with Circular No. 14 dated April 8, 2020 and Circular No. 17 dated Pearl Global Industries Limited Annual Report 2019-20 5 Notice (contd...) April 13, 2020 (hereinafter collectively referred to as "MCA Circulars") permitted the holding of Annual General Meeting through VC or OAVM without the physical presence of Members at a common venue. In compliance with these MCA Circulars and the relevant provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Annual General Meeting of the Members of the Company is being held through VC/ OAVM. 4. PPPPPuuuuursrsrsrsrsuuuuuaaaaannnnnt tt tt tt tt to to to to to the phe phe phe phe prrrrrovovovovovisioisioisioisioisionnnnns of t s of t s of t he Co he Co he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act,ct,ct,ct,ct, s of the Co s of t he Co 2013, a M 2013, a M 2013, a Meeeeembmbmbmbmbeeeeer er er er er ennnnntttttitititititleleleleled td td td td to ao ao ao ao atttttttttteeeeend and and and and and vnd vnd vnd vnd vototototote ae ae ae ae at tt tt tt tt thehehehehe 2013, a M 2013, a M AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnng is e g is e g is e g is ennnnntttttitititititleleleleled td td td td to ao ao ao ao appppppppppoooooiiiiinnnnnt at at at at a g is e ppppprrrrroooooxxxxxy ty ty ty ty to ao ao ao ao atttttttttteeeeend and and and and and vnd vnd vnd vnd vototototote oe oe oe oe on hn hn hn hn his/he is/he is/he is/her br br br br behehehehehaaaaalllllf af af af af and tnd tnd tnd tnd thehehehehe is/he ppppprrrrroooooxxxxxy ney ney ney ney neeeeeed not b d not b d not b d not be a Me a Me a Me a Me a Meeeeembmbmbmbmbeeeeer of t r of t r of t he Co he Co he Commmmmpppppaaaaannnnnyyyyy. Si . Si . Si . Sincncncncnceeeee r of the Co d not b r of t he Co . Si ttttthhhhhis Ais Ais Ais Ais AGGGGGM is bM is bM is bM is bM is beieieieieinnnnng held pu g held pu g held pu g held pursrsrsrsrsuuuuuaaaaannnnnt tt tt tt tt to to to to to the MC he MC he MC he MCAAAAA g held pu he MC CCCCCiiiiirrrrrcucucucuculllllaaaaars trs trs trs trs thhhhhrrrrrououououougggggh VC/O h VC/O h VC/O h VC/OAAAAAVVVVVMMMMM, p, p, p, p, phhhhhysicysicysicysicysicaaaaal al al al al atttttttttteeeeendndndndndaaaaancncncncnceeeee h VC/O of Mof Mof Mof Mof Meeeeembmbmbmbmbeeeeers hrs hrs hrs hrs haaaaas bs bs bs bs beeeeeeeeeen dn dn dn dn disisisisispppppeeeeennnnnsesesesesed wd wd wd wd wititititithhhhh. A. A. A. A. Accccccccccooooorrrrrdddddiiiiinnnnnggggglylylylyly,,,,, ttttthe fhe fhe fhe fhe facil acil acil acilititititity foy foy foy foy for ar ar ar ar appppppppppoooooiiiiinnnnntttttmememememennnnnt of p t of p t of p t of prrrrroooooxies b xies b xies b xies by ty ty ty ty thehehehehe acil t of p xies b MMMMMeeeeembmbmbmbmbeeeeers wrs wrs wrs wrs wililililill not b l not b l not b l not be ae ae ae ae avvvvvaaaaailililililababababable fo le fo le fo le for tr tr tr tr the Ahe Ahe Ahe Ahe Annnnnnnnnnuuuuuaaaaalllll l not b le fo GGGGGeeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnng ag ag ag ag and he nd he nd he nd hencncncncnce te te te te the Phe Phe Phe Phe Prrrrroooooxxxxxy Fy Fy Fy Fy Fooooorrrrrm am am am am andndndndnd nd he AAAAAtttttttttteeeeendndndndndaaaaancncncncnce Sl e Sl e Sle Sl e Sliiiiip ap ap ap ap arrrrre not a e not a e not a e not annnnnnexnexnexnexnexeeeeed td td td td to to to to to the Nhe Nhe Nhe Nhe Notototototicicicicice.e.e.e.e. e not a 5. Institutional/Corporate Shareholders (i.e. other than individuals/HUF, NRI, etc) are required to send a scanned copy (PDF/JPEG Format) of its Board Resolution or governing body Resolution/ Authorisation etc., authorising its representative to attend the Annual General Meeting through VC/ OAVM on its behalf and to vote through remote e- voting. The said Resolution/Authorization shall be sent to the Scrutinizer by email through their registered email address to jayantksood@benchwalklaw.com with copies marked at the sandeep.sabharwal@pearlglobal.com and to its RTA at enotices@linkintime.co.in. Company to t detaaaaailsilsilsilsils::::: t det n of emmmmmaaaaail Iil Iil Iil Iil ID aD aD aD aD and Bnd Bnd Bnd Bnd Baaaaannnnnk Ak Ak Ak Ak Accccccccccououououounnnnnt det t det n of e 6. RRRRReeeeegggggisisisisistttttrrrrraaaaatttttioioioioion of e n of e t det n of e In case the shareholder's email ID is already registered with the Company/its Registrar & Share Transfer Agent "RTA"/Depositories, log in details for e-voting are being sent on the registered email address. In case the shareholder has not registered his/her/their email addresses with the Company/its RTA/ Depositories and or not updated the Bank Account mandate for receipt of dividend, the following instructions to be followed: (i) Kindly log in to the website of our RTA, Link Intime India Private Ltd., www.linkintime.co.in under Investor Services > Email/Bank detail Registration- fill in the details and upload the required documents and submit. OOOOORRRRR (ii) In the case of Shares held in Demat mode: The shareholder may please contact the Depository Participant ("DP") and register the email address and bank account details in the demat account as per the process followed and advised by the DP. 7. The Notice of the Annual General Meeting along with the Annual Report for the financial year 2019-20 is being sent only by electronic mode to those Members whose email addresses are registered with the Company/ Depositories in accordance with the aforesaid MCA Circulars and Circular issued by SEBI dated May 12, 2020. Members may note that the Notice of Annual General Meeting and Annual Report for the financial year 2019-20 will also be available on the Company's website www.pearlglobal.com; websites of the Stock Exchanges i.e. National Stock Exchange of India Ltd and BSE Limited at www.nseindia.com and www.bseindia.com respectively. Members can attend and participate in the Annual General Meeting through VC/OAVM facility only. 8. Since the AGM will be held through VC/OAVM, the route map is not annexed to this notice. 9. Members attending the meeting through VC/OAVM shall be counted for the purposes of reckoning the quorum under Section 103 of the Companies Act, 2013. 10. Information in respect of such unclaimed dividend including when due for transfer to the said Fund is given below: 6 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) FFFFFiiiiinnnnnaaaaancianciancianciancial yea l yearrrrr l yea l yea l yea eeeeendendendendendeddddd 31.03.2013 31.03.2014 31.03.2015 31.03.2016 31.03.2016 31.03.2017 31.03.2018 31.03.2019 e of Divideideideideidend Dnd Dnd Dnd Dnd Deeeeeclclclclclaaaaarrrrreeeeeddddd e of Div RRRRRaaaaattttte of Div e of Div e of Div ooooon tn tn tn tn the phe phe phe phe paaaaaididididid-----uuuuup ep ep ep ep eqqqqquuuuuititititityyyyy shshshshshaaaaarrrrre ce ce ce ce caaaaapppppitititititaaaaalllll 10.00% (Final) 20.00% (Final) 22.50% (Final) 25.00% (Interim) 5.00% (Final) 30.00% (Final) 20.00% (Final) 30.00% (Final) Members who have not en-cashed their dividend warrant(s) so far, are requested to make their claim to the Company or to the Registrar and Share Transfer Agent of the Company at Link Intime India Pvt. Limited, Noble Heights, 1st Floor, Plot NH-2, C-1 Block LSC, Near Savitri Market, Janakpuri, New Delhi- 110058. 11. Members holding shares in dematerialised mode are requested to intimate all changes with respect to their bank details, mandate, nomination, power of attorney, change of address, e-mail address, change in name etc. to their depository participant. These changes will be automatically reflected in the Company's records which will help the Company to provide efficient and better services to the Members. 12. Members holding shares in physical form are requested to intimate changes with respect to their bank account (viz. name and address of the branch of the bank, MICR code of branch, type of account and account number), mandate, nomination, power of attorney, change of address, e-mail address, change in name etc. immediately to the Company. 13. No Gift(s) shall be distributed at the ensuing 31st Annual General Meeting of your Company. 14. In compliance with provisions of Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended from time to time and Regulation 44 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is pleased to provide to its members facility to exercise their right to vote at the 31st Annual General Meeting (AGM) by electronic means and the DDDDDaaaaattttte of e of e of e of e of dededededeclclclclclaaaaarrrrraaaaatttttioioioioion ofn ofn ofn ofn of DivDivDivDivDivideideideideidendndndndnd 27.09.2013 26.09.2014 22.09.2015 11.03.2016 27.09.2016 28.09.2017 24.09.2018 24.09.2019 LaLaLaLaLassssst dt dt dt dt daaaaattttte foe foe foe foe forrrrr clclclclclaaaaaiiiiimmmmmiiiiinnnnng ug ug ug ug unnnnnpppppaaaaaididididid DivDivDivDivDivideideideideidendndndndnd 25.10.2020 24.10.2021 20.10.2022 09.04.2023 26.10.2023 27.10.2024 23.10.2025 23.10.2026 DDDDDue due due due due daaaaattttte foe foe foe foe forrrrr tttttrrrrraaaaannnnnsssssfefefefefer tr tr tr tr tooooo IIIIIEEEEEP FP FP FP FP Fuuuuundndndndnd 24.11.2020 23.11.2021 19.11.2022 08.05.2023 25.11.2023 26.11.2024 22.11.2025 22.11.2026 business contained herein may be transacted through e-voting Services provided by Link Intime India Private Limited. 15. The voting period begins on Monday, November 23, 2020 at 09:00 A.M. and ends on Wednesday, November 25, 2020 at 05:00 P.M. During this period shareholders of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date November 19, 2020 (record date) may cast their vote electronically. 16. Any person, who acquires shares of the Company and become Member of the Company after dispatch of the Notice and holding shares as on the cut-off date i.e November 19, 2020 may follow the same instructions as mentioned for e-Voting. 17. Mr.Jayant Sood, Practicing Company Secretary, (Membership No. FCS 4482) has been appointed as the Scrutinizer to scrutinize the e-voting process in a fair and transparent manner. 18. The Scrutinizer shall, after the conclusion of voting at the general meeting, unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the employment of the Company and make, not later than three days of conclusion of the meeting, a Consolidated Scrutinizer's Report of the total votes cast in favour or against, if any, to the Chairman or a person authorised by him in writing who shall countersign the same. 19. The Results shall be declared on or after the AGM of the Company. The Results declared along with the Scrutinizer's Report shall be placed immediately on the Company's website wwwwwwwwwwwwwww.....pppppeaeaeaeaearrrrrlllllggggglololololobbbbbaaaaalllll.....cccccooooommmmm and on the website of Link Intime India Private Limited and Pearl Global Industries Limited Annual Report 2019-20 7 Notice (contd...) communicated to the BSE Limited and National Stock Exchange of India Limited simultaneously. 20.20.20.20.20. IIIIINSNSNSNSNSTTTTT RRRRRUUUUUCCCCCTTTTTIIIIIOOOOONS FNS FNS FNS FNS FOOOOOR ER ER ER ER E-----VOVOVOVOVOTTTTTIIIIINNNNNG AG AG AG AG ARRRRRE AE AE AE AE ASSSSS FFFFFOOOOOLLLLLLLLLLOOOOOWWWWWSSSSS::::: RRRRReeeeemotmotmotmotmote ee ee ee ee e-----VVVVVotototototiiiiinnnnng Ig Ig Ig Ig Innnnnssssstttttrrrrructuctuctuctuctioioioioionnnnns fos fos fos fos for shr shr shr shr shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs::::: 1. Open the internet browser and launch the URL: https://instavote.linkintime.co.in Those who are first time users of LIIPL e-voting platform or holding shares in physical mode have to mandatorily generate their own Password, as under: Click on "SigSigSigSigSign Un Un Un Un Uppppp" under 'SSSSSHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR' tab and register with your following details: - AAAAA..... UUUUUseseseseser Ir Ir Ir Ir IDDDDD::::: Enter your User ID • • • Shareholders/members holding shares in CCCCCDDDDDSSSSSL deL deL deL deL demmmmmaaaaat act act act act accccccououououounnnnnt sht sht sht sht shaaaaallllll pl pl pl pl prrrrrovovovovovide 16 ide 16 ide 16 ide 16 ide 16 DigDigDigDigDigit Bit Bit Bit Bit Beeeeeneficia neficia neficia neficiarrrrry Iy Iy Iy Iy IDDDDD neficia Shareholders/members holding shares in NSNSNSNSNSDDDDDL deL deL deL deL demmmmmaaaaat ac t act accccccououououounnnnnt sht sht sht sht shaaaaallllll pl pl pl pl prrrrrovovovovovide 8 t act ac ide 8 ide 8 ide 8 ide 8 CCCCChhhhhaaaaarrrrractactactactacteeeeer Dr Dr Dr Dr DP IP IP IP IP ID foD foD foD foD follllllololololowwwwweeeeed bd bd bd bd by 8 Dig y 8 Dig y 8 Dig y 8 Digititititit y 8 Dig CCCCClllllieieieieiennnnnt It It It It IDDDDD Shareholders/members holding shares in ppppphhhhhysicysicysicysicysicaaaaal fol fol fol fol forrrrrm shm shm shm shm shaaaaallllll pl pl pl pl prrrrrovovovovovideideideideide Event No + Folio Number registered with the Company B.B.B.B.B. PPPPPAAAAANNNNN: Enter your 10-digit Permanent Account Number (PAN) (Members who have not updated their PAN with the Depository Participant (DP) / Company shall use the sequence number provided to you, if applicable. C.C.C.C.C. DDDDDOOOOOB/DB/DB/DB/DB/DOOOOOIIIII: Enter the Date of Birth (DOB) / Date of Incorporation (DOI) (As recorded with your DP / Company - in DD/MM/ YYYY format) DDDDD..... BBBBBaaaaannnnnk Ak Ak Ak Ak Accccccccccououououounnnnnt Nt Nt Nt Nt Nuuuuumbmbmbmbmbeeeeerrrrr: Enter your Bank Account Number (last four digits), as recorded with your DP/Company. • Shareholders / members holding shares in CCCCCDDDDDSSSSSL deL deL deL deL demmmmmaaaaat ac t accccccououououounnnnnt sht sht sht sht shaaaaallllll pl pl pl pl prrrrrovovovovovideideideideide t ac t ac t ac eiteiteiteiteitheheheheher 'Cr 'Cr 'Cr 'Cr 'C' o' o' o' o' or 'D' r 'D', ab, ab, ab, ab, abovovovovoveeeee r 'D' r 'D' r 'D' Shareholders / members holding shares in ide 'D',,,,, ide 'D' ide 'D' NSNSNSNSNSDDDDDL deL deL deL deL demmmmmaaaaat act act act act accccccououououounnnnnt sht sht sht sht shaaaaallllll pl pl pl pl prrrrrovovovovovide 'D' ide 'D' abababababovovovovoveeeee Shareholders / members holding shares in • • ppppphhhhhysicysicysicysicysicaaaaal fol fol fol fol forrrrrmmmmm but have not recorded 'C' and 'D', shall provide their Folio number in 'D' above Set the password of your choice (The password should contain minimum 8 characters, at least one special Character (@!#$&*), at least one numeral, at least one alphabet and at least one capital letter). Click "confirm" (Your password is now generated). NOTE: If Shareholders/ members are holding shares in demat form and have registered on to e- Voting https:// of instavote.linkintime.co.in, and/or voted on an earlier event of any company then they can use their existing password to login. LIIPL : system 2. Click on 'Login' under 'SSSSSHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR' tab. 3. Enter your User ID, Password and Image Verification (CAPTCHA) Code and click on 'SSSSSubububububmmmmmititititit'. 4. After successful login, you will be able to see the notification for e-voting. Select 'VVVVVieieieieiewwwww' icon. 5. E-voting page will appear. 6. Refer the Resolution description and cast your vote by selecting your desired option 'FFFFFaaaaavvvvvououououour / Ag r / Ag r / Ag r / Agaaaaaiiiiinnnnnsssssttttt' r / Ag (If you wish to view the entire Resolution details, click on the 'VVVVVieieieieiew Rw Rw Rw Rw Resoesoesoesoesollllluuuuutttttioioioioionnnnn' file link). 7. After selecting the desired option i.e. Favour / Against, click on 'SSSSSubububububmmmmmititititit'. A confirmation box will be displayed. If you wish to confirm your vote, click on 'YYYYYeseseseses', else to change your vote, click on 'No' and accordingly modify your vote. 8. Institutional shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on the e-voting system of LIIPL at https://instavote.linkintime.co.in and register themselves as 'CCCCCuuuuussssstttttooooo dddddi ai ai ai ai an / Mn / Mn / Mn / Mn / Muuuuutttttuuuuuaaaaal Fl Fl Fl Fl Fuuuuund / nd /nd / nd /nd / CoCoCoCoCorprprprprpooooorrrrraaaaattttte Be Be Be Be Booooodydydydydy'. They are also required to upload a scanned certified true copy of the board resolution /authority letter/power of attorney etc. Together with attested specimen signature of the duly authorised representative(s) in PDF format in the 'CCCCCuuuuussssstttttooooodddddiaiaiaiaian / Mn / Mn / Mn / Mn / Muuuuutttttuuuuuaaaaal Fl Fl Fl Fl Fuuuuund / Co nd / Corprprprprpooooorrrrraaaaattttte Be Be Be Be Booooodydydydydy' nd / Co nd / Co nd / Co login for the Scrutinizer to verify the same. f you haaaaavvvvve foe foe foe foe forgrgrgrgrgotototototttttteeeeen tn tn tn tn the phe phe phe phe paaaaasssssswswswswswooooorrrrrddddd::::: IIIIIf you h f you h f you h f you h o Click on 'LLLLLooooogggggiiiiinnnnn' under 'SSSSSHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR' tab and further Click 'fofofofoforgrgrgrgrgot pot pot pot pot paaaaasssssswswswswswooooorrrrrddddd?' 8 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) • • o Enter UUUUUseseseseser Ir Ir Ir Ir IDDDDD, select MMMMMooooode de de de de and Enter Image Verification (CAPTCHA) Code and Click on 'SSSSSubububububmmmmmititititit'. In case shareholders/ members is having valid email address, Password will be sent to his / her registered e-mail address. Shareholders/ members can set the password of his/ her choice by providing the information about the particulars of the Security Question and Answer, PAN, DOB/DOI, Bank Account Number (last four digits) etc. As mentioned above. • The password should contain minimum 8 characters, at least one special character (@!#$&*), at least one numeral, at least one alphabet and at least one capital letter. • It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. For shareholders/ members holding shares in physical form, the details can be used only for voting on the resolutions contained in the Notice. During the voting period, shareholders/ members can login any number of time till they have voted on the resolution(s) for a particular "Event". Shareholders/ members holding multiple folios/demat account shall choose the voting process separately for each of the folios/demat account. Any person, who acquires shares of the Company and become Member of the Company after dispatch of the Notice and holding shares as on the cut-off date i.e November 19, 2020 may follow the same instructions as mentioned above for e-Voting. In case shareholders/ members have any queries regarding e-voting, they may refer the FFFFFrrrrreeeeeqqqqqueueueueuennnnntttttlylylylyly AskAskAskAskAskeeeeed Qd Qd Qd Qd Quesuesuesuesuestttttioioioioionnnnns ('Fs ('Fs ('Fs ('Fs ('FAAAAAQQQQQsssss')')')')') and IIIIInnnnnssssstttttaaaaaVVVVVototototote ee ee ee ee e-----VVVVVotototototiiiiinnnnnggggg mmmmmaaaaannnnnuuuuuaaaaalllll available at https://instavote.linkintime.co.in, under HHHHHe le le le le lppppp section or send an email to enotices@linkintime.co.in or contact on: - Tel: 022- 4918 6000. 21.21.21.21.21. PPPPPRRRRROOOOOCCCCCEEEEESSSSSS AS AS AS AS ANNNNND MD MD MD MD MAAAAANNNNNNNNNNEEEEER FR FR FR FR FOOOOOR AR AR AR AR ATTTTTTTTTTEEEEENNNNNDDDDDIIIIINNNNNGGGGG TTTTT HHHHH E AE AE AE AE ANNNNN NNNNN UUUUUAAAAA L GL GL GL GL GEEEEE NNNNN EEEEE RRRRR AAAAA L ML ML ML ML MEEEEE EEEEETTTTT IIIII NNNNN GGGGG TTTTTHHHHHRRRRROOOOOUUUUUGGGGGH IH IH IH IH INSNSNSNSNSTTTTTAAAAAMMMMMEEEEEEEEEET AT AT AT AT ARRRRRE AE AE AE AE AS FS FS FS FS FOOOOOLLLLLLLLLLOOOOOWWWWWSSSSS::::: 1. Open the internet browser and launch the URL: https://instameet.linkintime.co.in Select the "CoCoCoCoCommmmmpppppaaaaannnnnyyyyy" and 'EEEEEvvvvveeeeennnnnt Dt Dt Dt Dt Daaaaattttteeeee' and register with your following details: - AAAAA..... DDDDDeeeeemmmmmaaaaat At At At At Accccccccccououououounnnnnt Nt Nt Nt Nt Nooooo. o. o. o. o. or Fr Fr Fr Fr Fooooolllllio Nio Nio Nio Nio Nooooo: Enter your 16 digit Demat Account No. or Folio No • • • Shareholders/ members holding shares in ide 16 ide 16 t accccccououououounnnnnt sht sht sht sht shaaaaallllll pl pl pl pl prrrrrovovovovovide 16 t ac CCCCCDDDDDSSSSSL deL deL deL deL demmmmmaaaaat ac t ac ide 16 ide 16 t ac neficiarrrrry Iy Iy Iy Iy IDDDDD neficia DigDigDigDigDigit Bit Bit Bit Bit Beeeeeneficia neficia neficia Shareholders/ members holding shares in t acccccco uo uo uo uo unnnnnt sht sht sht sht shaaaaa llllll pl pl pl pl prrrrro vo vo vo vo vide 8 N SN SN SN SN SDDDDD L deL deL deL deL demmmmmaaaaat ac ide 8 ide 8 t ac t ac ide 8 ide 8 t ac CCCCChhhhhaaaaarrrrractactactactacteeeeer Dr Dr Dr Dr DP IP IP IP IP ID foD foD foD foD follllllololololowwwwweeeee d bd bd bd bd by 8 Dig y 8 Digititititit y 8 Dig y 8 Dig y 8 Dig CCCCClllllieieieieiennnnnt It It It It IDDDDD Shareholders/ members holding shares in ppppphhhhhysicysicysicysicysicaaaaal fol fol fol fol forrrrrm shm shm shm shm shaaaaallllll pl pl pl pl prrrrrovovovovovideideideideide Folio Number registered with the Company B.B.B.B.B. PPPPPAAAAANNNNN: Enter your 10-digit Permanent Account Number (PAN) (Members who have not updated their PAN with the Depository Participant (DP)/ Company shall use the sequence number provided to you, if applicable). C.C.C.C.C. MMMMMooooobbbbbile Nile Nile Nile Nile Nooooo.....: Enter your mobile number. DDDDD..... EEEEEmmmmmaaaaail Iil Iil Iil Iil IDDDDD: Enter your email id, as recorded with your DP/Company. Click "Go to Meeting" (You are now registered for InstaMeet and your attendance is marked for the meeting). Please refer the instructions (annexure) for the software requirements and kindly ensure to install the same on the device which would be used to attend the meeting. Please read the instructions carefully and participate in the meeting. You may also call upon the InstaMeet Support Desk for any support on the dedicated number provided to you in the instruction/ InstaMEET website. IIIIInnnnnssssstttttrrrrructuctuctuctuctioioioioionnnnns fos fos fos fos for Shr Shr Shr Shr Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders/ Mrs/ Mrs/ Mrs/ Mrs/ Meeeeembmbmbmbmbeeeeers t rs to So So So So Spppppeaeaeaeaeakkkkk rs t rs t rs t ddddduuuuurrrrriiiiinnnnng tg tg tg tg the Ahe Ahe Ahe Ahe Annnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeen en en en en errrrraaaaal Ml Ml Ml Ml Meeeee e te te te te tiiiiinnnnng tg tg tg tg thhhhhrrrrro uo uo uo uo uggggg hhhhh IIIIInnnnnssssstttttaaaaaMMMMMeeeeeetetetetet::::: 1. 2. 3. Shareholders who would like to speak during the meeting must register their request 3 days in advance with the investor.pgil@pearlglobal.com. company the on Shareholders will get confirmation on first cum first basis depending upon the provision made by the client. Shareholders will receive "speaking serial number" once they mark attendance for the meeting. Pearl Global Industries Limited Annual Report 2019-20 9 Notice (contd...) 4. Other shareholder may ask questions to the panellist, via active chat-board during the meeting. 5. Please remember speaking serial number and start your conversation with panellist by switching on video mode and audio of your device. Shareholders are requested to speak only when moderator of the meeting/ management will announce the name and serial number for speaking. IIIIInnnnnssssstttttrrrrructuctuctuctuctioioioioionnnnns fos fos fos fos for Shr Shr Shr Shr Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders/ Mrs/ Mrs/ Mrs/ Mrs/ Meeeeembmbmbmbmbeeeeers t rs to Vo Vo Vo Vo Votototototeeeee rs t rs t rs t ddddduuuuurrrrriiiiinnnnng tg tg tg tg the Ahe Ahe Ahe Ahe Annnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeen en en en en errrrraaaaal Ml Ml Ml Ml Meeeee e te te te te tiiiiinnnnng tg tg tg tg thhhhhrrrrro uo uo uo uo uggggg hhhhh IIIIInnnnnssssstttttaaaaaMMMMMeeeeeetetetetet::::: Once the electronic voting is activated by the scrutinizer/ moderator during the meeting , shareholders/ members who have not exercised their vote through the remote e-voting can cast the vote as under: 1. On the Shareholders VC page, click on the link for e-Voting "Cast your vote" 2. Enter your 16 digit Demat Account No. / Folio No. and OTP (received on the registered mobile number/ registered email Id) received during registration for InstaMEET and click on 'Submit'. 3. After successful login, you will see "Resolution Description" and against the same the option "Favour/ Against" for voting. 4. Cast your vote by selecting appropriate option i.e. "Favour/Against" as desired. Enter the number of shares (which represents no. of votes) as on the cut- off date under 'Favour/Against'. 5. After selecting the appropriate option i.e. Favour/ Against as desired and you have decided to vote, click on "Save". A confirmation box will be displayed. If you wish to confirm your vote, click on "Confirm", else to change your vote, click on "Back" and accordingly modify your vote. 6. Once you confirm your vote on the resolution, you will not be allowed to modify or change your vote subsequently. Note: Shareholders/ Members, who will be present in the Annual General Meeting through InstaMeet facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting facility during the meeting. Shareholders/ Members who have voted through Remote e-Voting prior to the Annual General Meeting will be eligible to attend/ participate in the Annual General Meeting through InstaMeet. However, they will not be eligible to vote again during the meeting. Shareholders/ Members are encouraged to join the Meeting through Tablets/ Laptops connected through broadband for better experience. Shareholders/ Members are required to use Internet with a good speed (preferably 2 MBPS download stream) to avoid any disturbance during the meeting. Please note that Shareholders/Members connecting from Mobile Devices or Tablets or through Laptops connecting via Mobile Hotspot may experience Audio/ Visual loss due to fluctuation in their network. It is therefore recommended to use stable Wi-FI or LAN connection to mitigate any kind of aforesaid glitches. In case shareholders/ members have any queries regarding login/ e-voting, they may send an email to instameet@linkintime.co.in or contact on: - Tel: 022- 49186175. EEEEEXXXXXPPPPPLLLLLAAAAANNNNNAAAAATTTTTOOOOORRRRRY SY SY SY SY STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT As required by Section 102 of the Companies Act, 2013 the following Explanatory Statement sets out the material facts relating to the businesses under Item Nos. 3 to 9 of the accompanying Notice. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 3: . 3: . 3: . 3: . 3: The Board of Directors, based on recommendation of the Nomination and Remuneration Committee, appointed Mrs. Madhulika Bhupatkar, as an Additional Director in the capacity of Independent Women Director of the Company with effect from March 18, 2020, pursuant to section 161 of the Companies Act, 2013, to comply the requirements of proviso of Regulation 17(1)(a) of SEBI (Listing Obligation and Disclosure Requirement) Regulation 2015. Mrs. Bhuptakar shall hold office as an additional Director up to the date of this Annual General Meeting and is eligible to be appointed as an Independent Director for a term upto five (5) consecutive years. The Company has received necessary notice from a member under Section 160(1) of the Companies Act, 2013 ("the Act") proposing her candidature for appointment as Director of the Company. Mrs. Bhupatkar is not disqualified from being appointed as Director in terms of Section 164 of the Act and has given her consent to act as Director of the Company. The Company has also received declaration from 10 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) Mrs. Bhupatkar that she meets the criteria of Independence as prescribed under Section 149 of the Act read with the Rules made thereunder and Regulation 16 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. She also fulfills the requirement of Section 150 of the Act, regarding registration as Independent Director in databank of Independent Directors. In the opinion of the Board, she fulfils the conditions as specified in the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mrs. Bhupatkar, aged about 64 years, having degree in B.Sc., Post Graduate Diploma in Dietetics and B.Ed., with over 30 years of experience in academics and held position as Principal in various educational institutions and having experience in general management. The Board of Directors in its meeting held on July 28, 2020, appointed Mrs. Bhupatkar as Chairperson of Corporate Social Responsibility Committee and member in Audit Committee of the Company. Details of other Directorship / Committee Membership held in other Companies: NNNNNIIIIILLLLL She will be paid remuneration by way of fee for attending meetings of the Board or for any other purpose whatsoever as may be decided by the Board and reimbursement of expenses for participation in the Board. Shareholders' approval is sought for appointment of Mrs. Madhulika Bhupatkar as an Independent Director of the Company. Copy of draft letter of appointment of Mrs. Madhulika Bhupatkar as an Independent Director setting out the terms and conditions would be available for electronic inspection without any fee by the members on the basis of the request being sent on investor.pgil@pearlglobal.com. None of the Directors and Key Managerial Personnel of the Company, or their relatives, except Mrs. Madhulika Bhupatkar, herself is interested, financially or otherwise, in this Resolution. Your Directors recommend the passing of the resolution at Item no.3 as an Ordinary Resolution. Additional information in respect of Mrs. Bhupatkar, pursuant to Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard 2 is annexed to this Notice. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 4 & 6: . 4 & 6: . 4 & 6: . 4 & 6: . 4 & 6: The Board of Directors, based on the recommendation of Nomination and Remuneration Committee, at their meetings held on July 28, 2020, appointed Mr. Uma Shankar Kaushik (DIN 06867819) as an Additional Director and Whole-Time Director of the Company, with effect from July 28, 2020. Before his appointment as Director, he was working as Assistant Vice-President (HR & Admin) of the Company. After resignation of Mr. Vinod Vaish, from the office of Director and Whole-Time Director of the Company, who was heading the HR & Administration functions of the Company, The Nomination and Remuneration Committee and the Board of Directors considered that he is fit and proper person to appoint as Director and Whole-Time Director for heading the HR & Administration functions of the Company. Mr. Kaushik is not disqualified from being appointed as Director in terms of Section 164 of the Companies Act, 2013 and has given his consent to act as Director and Whole-Time Director of the Company. Mr. Uma Shankar Kaushik, aged about 47 years, holds Bachelor Degree in Arts from Delhi University and Executive Post Graduate Diploma in HR & Personnel Management from IMT Ghaziabad and having more than 21 years experience in the field of the HR and Administration. Details of other Directorship/Committee Membership held by him in other Companies are as follows: Directorship: He holds Directorship in PKW Associates Private Ltd. Committee Membership: He does not hold any committee membership in any Company. Shareholders' approval is sought for appointment of Mr. Uma Shankar Kaushik as Director and Whole-Time Director of the Company. The appointment and Remuneration payable to Mr. Kaushik is within the limits provided under Section 196, 197 and 203 read with Schedule V and other applicable provisions of the Companies Act, 2013. The terms as set out in the resolution and explanatory statements may be treated as a written memorandum setting out terms of appointment of Mr. Uma Shankar Kaushik under Section 190 of the Companies, Act, 2013. None of the Directors and Key Managerial Personnel of the Company, or their relatives, except Mr. Uma Shankar Kaushik, himself is interested, financially or otherwise, in this Resolution. Pearl Global Industries Limited Annual Report 2019-20 11 Notice (contd...) Your Directors recommend the passing of the resolution at Item no.4 & 6 as an Ordinary Resolution. Additional information in respect of Mr. Kaushik, pursuant to Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard 2 is annexed to this Notice. Statement Pursuant to Section II of Part II of Schedule V of the Companies Act, 2013, is provided below. Copy of the resolutions passed by the Board in respect of the above would be available for electronic inspection without any fee by the members on the basis of the request being sent on investor.pgil@pearlglobal.com. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 5 & 7: . 5 & 7: . 5 & 7: . 5 & 7: . 5 & 7: The Board of Directors at its meeting held on October 07, 2020, based on the recommendation of Nomination and Remuneration Committee at its meeting held on September 24, 2020, appointed Mr. Shailesh Kumar (DIN 08897225) as an Additional Director and Whole-Time Director of the Company, with effect from October 07, 2020. Before his appointment as Director, he was heading HR functions of the Knits division of the Company as DGM (HR). The Nomination and Remuneration Committee and the Board of Directors considered that he is fit and proper person to appoint as Director and Whole-Time Director for heading the HR functions of Knits division of the Company. Mr. Shailesh is not disqualified from being appointed as Director in terms of Section 164 of the Companies Act, 2013 and has given his consent to act as Director and Whole-Time Director of the Company. Mr. Shailesh Kumar, aged about 51 years, holds Bachelor degree in Science from Magadh University, Post Graduate Diploma in Personnel Management & Industrial Relations from LNMI Patna and Diploma in Labour Laws with Administrative Law from Annamalai University and having more than 26 years of experience in the field of HR and Personnel Management and Labour Laws Compliances. Details of other Directorship / Committee Membership held in other Companies: NNNNNIIIIILLLLL Shareholders' approval is sought for appointment of Mr. Shailesh Kumar as Director and Whole-Time Director of the Company. The appointment and Remuneration payable to Mr. Shailesh is within the limits provided under Section 196, 197 and 203 read with Schedule V and other applicable provisions of the Companies Act, 2013. The terms as set out in the resolution and explanatory statements may be treated as a written memorandum setting out terms of appointment of Mr. Shailesh Kumar under Section 190 of the Companies, Act, 2013. None of the Directors and Key Managerial Personnel of the Company, or their relatives, except Mr. Shailesh Kumar, himself is interested, financially or otherwise, in this Resolution. Your Directors recommend the passing of the resolution at Item no.5 & 7 as an Ordinary Resolution. Additional information in respect of Mr. Shailesh Kumar, pursuant to Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard 2 is annexed to this Notice. Statement Pursuant to Section II of Part II of Schedule V of the Companies Act, 2013, is provided below. Copy of the resolutions passed by the Board in respect of the above would be available for electronic inspection without any fee by the members on the basis of the request being sent on investor.pgil@pearlglobal.com. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 8: . 8: . 8: . 8: . 8: The members of the Company at their 29th Annual General Meeting held on September 24, 2018, were re-appointed Mr. Vinod Vaish as Whole-Time Director of the Company for a period of Two years with effect from October 19, 2018 upto October 18, 2020. Further, the members of the Company at their 30th Annual General Meeting held on September 24, 2019, revised the remuneration of Mr. Vinod Vaish, as per detail below, with effect from April 01, 2018: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Basic Pay House Rent Allowance Special Allowance Provident Fund & Gratuity (((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````))))) 68,890/- 34,440/- 33,668/- As per Company's rules The Nomination and Remuneration Committee and the Board of Directors, considering the growth in the business activities, increased volume of work, revised the remuneration of Mr. Vinod Vaish with effect from October 01, 2019, at their meetings held on February 13, 2020. However, Mr. Vinod Vaish has tendered his resignation from the office of Director and Whole-Time Director of the Company with effect from April 30, 2020. Since the Board of Directors has revised the remuneration of Mr. Vinod Vaish with effect from October 01, 2019 and 12 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) has paid the remuneration till April 30, 2020 to him, shareholders' approval is sought for variation in terms of remuneration of Mr. Vinod Vaish. This remuneration is within the limits provided under Section 197 read with Schedule V and other applicable provisions of the Companies Act, 2013. Further details of Mr. Vaish are as follows: Mr. Vinod Vaish, aged about 62 years, is a Bachelor of Science and Long Logistics Management. He was Whole- Time Director of the Company, heading Administration and HR functions of the Company since 2012 till April 30, 2020. He had been in the Indian Navy for 28 years at various levels in various capacities and has achieved in depth knowledge of all aspects of Administration and Logistics Management. He has been conferred President Gold Medal for overall outstanding best officer in Naval Academy. Details of other Directorship/Committee Membership held by him in other Companies are as follows: Directorship: Mr. Vinod Vaish holds Directorship in Pearl Apparel Fashions Limited. Committee Membership: Since he has resigned from the Board of the Company, consequently he has ceased to be member in the Committees of the Board of the Company. None of the Directors and Key Managerial Personnel of the Company, or their relatives, is interested, financially or otherwise, in this Resolution. Your Directors recommend the passing of the resolution at Item no. 8 as an Ordinary Resolution. Statement Pursuant to Section II of Part II of Schedule V of the Companies Act, 2013, is provided below: TTTTTHHHHHE SE SE SE SE STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNT PT PT PT PT PUUUUURRRRRSSSSSUUUUUAAAAANNNNNT TT TT TT TT TO SO SO SO SO SECECECECECTTTTTIIIIIOOOOON IN IN IN IN II OI OI OI OI OF PF PF PF PF PAAAAARRRRRT IT IT IT IT II OI OI OI OI OF SF SF SF SF SCCCCCHHHHHEEEEEDDDDDUUUUULLLLLE V OE V OE V OE V OE V OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNIIIIIEEEEESSSSS AAAAACCCCCTTTTT, 2013 , 2013 , 2013 , 2013 , 2013 I.I.I.I.I. GGGGGEEEEENNNNNEEEEERRRRRAAAAAL IL IL IL IL INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON:N:N:N:N: 1. Nature of industry 2. Date or expected date of commencement of commercial production 3. date In case of new companies, expected of commencement of activities as per project approved by financial institutions appearing in the prospectus 4. Financial performance based on given indicators Pearl Global Industries Limited is engaged in manufacture and exports of Readymade Garments. Garment and Textile Industries plays a major role in the economy of the country. Indian garment and textile industry is the second largest after agriculture in the country in terms of employment generation. Indian industry currently generates employment to more than 45 million people directly and 60 million people indirectly. The Industry contributes approximately 5% to India's gross domestic product (GDP) and contributes to nearly 30% of the total exports. The Company has large installed capacity for apparel manufacturing with state- of-the-art machinery and work process for supplying high quality products to Customers and with the continuous up-gradation of manufacturing facilities, the Company shall record further increase in Turnover and Profits in future years. The date of commencement of commercial production (in erstwhile Pearl Global Limited, since merged with the Company) was 7th December, 1988. Not Applicable The gross income of the Company stood at ` 858.72 Crore. The Profit before Tax for the year is ` 10.90 Crore as against ` 31.85 Crore last year. The Company managed to have PAT of ` 5.01 Crore. Notice (contd...) 5. Foreign investments or collaborators, if any Pearl Global Industries Limited Annual Report 2019-20 13 The Company has no foreign collaboration. Apart from holding 33,81,473 equity shares of ` 10/- each of your Company by 126 NRI/FPI/ Members/Folios representing approx 15.6088% of the total paid up Capital of the Company as on 31st March, 2020, there is no other foreign investment in the Company. ilesh Kuuuuummmmmaaaaarrrrr ilesh K MMMMMrrrrr. Sh. Sh. Sh. Sh. Shaaaaailesh K ilesh K ilesh K MMMMMrrrrr. V. V. V. V. Viiiiinononononod Vd Vd Vd Vd Vaaaaaishishishishish IIIIII.I.I.I.I. IIIIINNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON AN AN AN AN ABBBBBOOOOOUUUUUT TT TT TT TT THHHHHE AE AE AE AE APPPPPPPPPPOOOOOIIIIINNNNNTTTTTEEEEEEEEEE::::: IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioionnnnn 1. Background Details MMMMMrrrrr. U. U. U. U. Ummmmmaaaaa ShShShShShaaaaannnnnkakakakakar Ka r Kauuuuushshshshshikikikikik r Ka r Ka r Ka Mr. Uma Shankar Kaushik, aged about 47 years, holds Bachelor Degree in Arts from Delhi University and Executive Post Graduate Diploma in HR & Personnel Management from IMT Ghaziabad and having more than 21 years experience in the field of the HR and Administration. 2. Past Remuneration ` 1,87,528/- per month, as Assistant Vice-President (HR & Admin) Mr. Shailesh Kumar, aged about 51 years, holds Bachelor degree in Science from Magadh University, Post Graduate Diploma in Personnel Management & Industrial Relations from LNMI Patna and Diploma in Labour Laws with Administrative Law from Annamalai University and having more than 26 years of experience in the field of HR and Personnel Management and Laws Labour Compliances. ` 1,50,000/- per month, as DGM (HR) 3. Recognition or Awards NIL NIL 4. Job Profile and their Suitability Mr. Uma Shankar, Whole Time Director shall manage the day-to-day affairs of woven division of the Company and shall also carry out all duties and functions subject to the supervision, control and directions of the Board of Directors of the Company and shall perform such other duties and services as shall from time to time be entrusted to him by the Board of Directors of the Company." Mr. Shailesh Kumar, Whole Time Director shall manage the day-to-day affairs of the Knits division of the Company and shall also carry out all duties and functions subject to the supervision, control and directions of the Board of Directors of the Company and shall perform such other duties and services as shall from time to time be entrusted to him by the Board of Directors of the Company." Mr. Vinod Vaish, aged about 61 years, is a Bachelor of Science and Long Logistics Management. He had been in the Indian Navy for 28 years at various levels in various capacities and has achieved in depth knowledge of all aspects of Administration and Logistics Management. ` 1,36,998/- Per Month President Gold Medal for overall outstanding best officer in Naval Academy. Mr. Vinod Vaish was heading Administration and HR functions of the Company. 14 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) 5. Remuneration Proposed Allowance: Basic Pay: ` 80,000/- Per Month House Rent Allowance: ` 40,000/- Per Month Special ` 30,000/- Per Month Provident Fund & Gratuity: As per Company's rules. Reimbursement of actual of business Conveyance including Driver. expenses Allowance: Basic Pay: ` 1,03,334/- Per Month House Rent Allowance: ` 51,667/- Per Month Special ` 30,927/- Per Month Conveyance: ` 1,600/- Per month Provident Fund & Gratuity: As per Company's rules. Reimbursement of actual of business Conveyance including Driver and Entertainment reimbursement. expenses Allowance: Basic Pay: ` 68,890/- Per Month House Rent Allowance: ` 34,440/- Per Month Special ` 44,489/- Per Month Provident Fund Gratuity: Company's rules A Company maintained Car with Driver for official purpose, Mobile Phone and also for entitled reimbursement of actual expenses for business of the Company. and per As 6. C o m p a r a t i v e Remuneration profile with respect to industry, size of the company profile of position and person 7. Pecuniary relationship directly or indirectly with the company or with the managerial personnel, if any Arvind Limited Period: 2018-19 Turnover: ` 6,539.81 Crore Kitex Garments Ltd Period:- 2018-19 Turnover: ` 629.26 Crore Managerial Personnel: Whole-Time Director: Annual Managerial Remuneration: ` 3.64 Crore Managerial Personnel: Whole-Time Director Annual Remuneration: ` 17.81 Lakh Managerial Pecuniary Relationship other than Remuneration proposed above, is NIL. No relationship with Managerial Personnel. They do not hold any Share in the Company. IIIIIIIIIII.I.I.I.I. OOOOOTTTTTHHHHHEEEEER IR IR IR IR INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON:N:N:N:N: 1. Reasons of loss or inadequate profits Steps taken or proposed to be undertaken for improvements The Readymade Garments Export Industry had yet another tough year where profitability was low due to withdrawal of Government incentives. The Company is laying special focus on technological up-gradation, lesser breakdown time, use labour saving devices, training of managers, supervisors and operators. Besides, the Company is also outsourcing manufacturing from low cost destinations. Maintaining quality, reducing cost with better productivity will help the Company to operate profitably. Expected increase in productivity The Sales Turnover of your Company during the year 2019-20 was ` 858.72 and profits in measurable terms Crore. The Company's PAT stood at ` 5.01 Crore during 2019-20. 2. 3. Your Company has since identified and prioritized its targets and has been gearing up to face the perceived challenges due to and further enhance its presence in the International Markets. Pearl Global Industries Limited Annual Report 2019-20 15 Notice (contd...) IIIIIVVVVV..... DDDDDIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEESSSSS::::: Disclosures in the Board of Directors' report under the heading 'Corporate Governance' included in Annual Report 2019-20: The requisite details of remuneration etc. of Directors are included in the Corporate Governance Report, forming part of the Annual Report of FY 2019-20 of the Company. The Company has no policy for stock option, pension, and performance linked incentives. sactioioioioionnnnnsssss::::: sact . 9: RRRRRelelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttty ty ty ty ty trrrrraaaaannnnnsact sact . 9: IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 9: . 9: sact . 9: The Audit Committee and Board of Directors of the Company have, in their meetings held on September 14, 2020, approved a proposal for entering into the following related party transactions for the financial year 2021-22: me of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy me of R SlSlSlSlSl..... NNNNNaaaaame of R me of R me of R NNNNNooooo..... e ofe of e ofe of NNNNNaaaaatttttuuuuurrrrre of rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp 1. Norp Knit Industries Limited Subsidiary he Dirrrrreeeeectctctctctooooor or or or or orrrrr he Di he Di me of t NNNNNaaaaame of t me of t me of the Di he Di me of t KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel , if annnnnyyyyy , if a , if a ho is relelelelelaaaaattttteeeeeddddd, if a ho is r ho is r wwwwwho is r , if a ho is r Mr. Deepak Seth Mr. Pulkit Seth Mr. Anil Nayar 2. PT Pinnacle Apparels Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth 3. Pear Global (HK) Limited Wholly owned Mr. Deepak Seth subsidiary Mr. Pulkit Seth Mr. Abhishek Goyal 4. Pearl Global Fareast Limited Wholly owned Mr. Deepak Seth subsidiary Mr. Pulkit Seth sactioioioioionnnnnsssss sact sact NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact sact Purchase of Goods Sale of Goods SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Other supporting services Purchase of Goods Sale of Goods SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Purchase of Goods Sale of Goods SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Other supporting services Purchase of Goods Sale of Goods SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Other supporting services AAAAAmoumoumoumoumounnnnnttttt (((((````` i i i i innnnn CCCCCrrrrrooooorrrrre)e)e)e)e) 300.00 25.00 0.25 12.00 1.00 1.50 15.00 1.00 0.10 2.00 2.00 10.00 250.00 1.50 7.50 30.00 15.00 10.00 60.00 0.50 2.50 1.00 1.50 16 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) SlSlSlSlSl..... NNNNNaaaaame of R me of R me of R me of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy me of R NNNNNooooo..... NNNNNaaaaatttttuuuuurrrrre of e ofe of e ofe of rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp NNNNNaaaaame of t me of t me of t he Di he Di he Dirrrrreeeeectctctctctooooor or or or or orrrrr me of the Di me of t he Di KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel wwwwwho is r ho is r ho is r ho is relelelelelaaaaattttteeeeeddddd, if a , if a , if a , if annnnnyyyyy ho is r , if a NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact sact sact sactioioioioionnnnnsssss sact 5. DSSP Global Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth 6. PDS Multinational Fashions Limited 7. Norwest Industries Limited Enterprise over Mr. Deepak Seth KMP has significant influence Enterprise over Mr. Deepak Seth KMP has significant influence 8. Pearl Grass Creations Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth Mrs. Shifalli Seth Purchase of Goods Sale of Goods SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Expenses incurred by them on our behalf Expenses paid by us on their behalf Sale of Goods Sale of Samples Expenses incurred by them on our behalf Expenses paid by us on their behalf Purchase of Goods Sale of Goods Expenses incurred by them on our behalf Expenses paid by us on their behalf SAP Facilities Charges 9. Prudent Fashions Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth Sale of Goods Sale of Samples 10. Vin Pearl Global Vietnam Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Sale of Goods Sale of Samples SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf AAAAAmoumoumoumoumounnnnnttttt (((((````` i i i i innnnn CCCCCrrrrrooooorrrrre)e)e)e)e) 10.00 25.00 0.10 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 6.00 6.00 1.00 1.00 0.25 1.00 1.00 0.10 1.00 1.00 5.00 1.00 0.25 1.00 1.00 Pearl Global Industries Limited Annual Report 2019-20 17 Notice (contd...) SlSlSlSlSl..... NNNNNaaaaame of R me of R me of R me of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy me of R NNNNNooooo..... NNNNNaaaaatttttuuuuurrrrre of e ofe of e ofe of rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp 11. Pearl Global F.Z.E Step down subsidiary NNNNNaaaaame of t me of t me of t he Di he Di he Dirrrrreeeeectctctctctooooor or or or or orrrrr me of the Di me of t he Di KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel wwwwwho is r ho is r ho is r ho is relelelelelaaaaattttteeeeeddddd, if a , if a , if a , if annnnnyyyyy ho is r , if a Mr. Deepak Seth NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact sact sact sactioioioioionnnnnsssss sact Sale of Goods Sale of Samples SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf 12. PGIC Investment Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth Sale of Goods Sale of Samples 13. Pearl Global (Chang Zhou) Textile Technology Co. Ltd. Step down subsidiary - 14. Pearl Global Vietnam Co. Limited Step down subsidiary Mr. Pulkit Seth SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Sale of Goods Sale of Samples SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Purchase of Goods Sale of Goods SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf AAAAAmoumoumoumoumounnnnnttttt (((((````` i i i i innnnn CCCCCrrrrrooooorrrrre)e)e)e)e) 1.00 1.00 0.10 1.00 1.00 1.00 1.00 0.10 1.00 1.00 1.00 1.00 0.20 1.00 1.00 10.00 30.00 1.00 1.00 1.00 Mr. Deepak Seth, Chairman, Mr. Pulkit Seth, Managing Director, Mrs. Shifalli Seth, Whole-Time Director, and Mrs. Payel Seth are relatives. Mr. Pulkit Seth is member of Norp Knit Industries Limited, PT Pinnacle Apparels and Prudent Fashions Limited. Mr. Deepak Seth is member of Norp Knit Industries Limited and Prudent Fashions Limited. Your Directors recommend the passing of the resolution at Item no.9 as an Ordinary Resolution. None of the Directors or Key Managerial Personnel or their relatives except as disclosed above are interested in this resolution. Place: Gurugram Date: October 07, 2020 By order of the Board of Directors l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo for PPPPPeaeaeaeaearrrrrl Glo l Glo l Glo (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy 18 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) -1 to to to to to the Nhe Nhe Nhe Nhe Notototototiciciciciceeeee::::: -1 t AAAAAnnnnnnexnexnexnexnexuuuuurrrrreeeee-1 t -1 t -1 t DDDDDEEEEETTTTTAAAAAIIIIILLLLLS OS OS OS OS OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRS SS SS SS SS SEEEEEEEEEEKKKKKIIIIINNNNNG AG AG AG AG APPPPPPPPPPOOOOOIIIIINNNNNTTTTTMMMMMEEEEENNNNNT/RT/RT/RT/RT/REEEEE-----AAAAAPPPPPPPPPPOOOOOIIIIINNNNNTTTTTMMMMMEEEEENNNNNT AT AT AT AT AT TT TT TT TT THHHHHEEEEE FFFFFOOOOORRRRRTTTTTHHHHHCCCCCOOOOOMMMMMIIIIINNNNNG AG AG AG AG ANNNNNNNNNNUUUUUAAAAAL GL GL GL GL GEEEEENNNNNEEEEERRRRRAAAAAL ML ML ML ML MEEEEEEEEEETTTTTIIIIINNNNNGGGGG [Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard-2] IIIIIttttteeeeem nom nom nom nom no. 2: M. 2: M. 2: M. 2: M. 2: Mrsrsrsrsrs. Sh. Sh. Sh. Sh. Shifififififaaaaalllllllllli Si Si Si Si Seteteteteth (Dh (Dh (Dh (Dh (DIIIIIN 01388430) N 01388430) N 01388430) N 01388430) N 01388430) Age Qualifications : 39 Years : Bachelor of Science in Business Administration from University of Bradford, Experience (including expertise in specific functional area) / Brief resume U.K. : She has varied exposure in Garments and Textiles Industry. She is whole- Time Director of the Company and heading Design & Product Development functions since 2012. She is having International experience in trading, marketing of readymade garments and knowledge of Southeast Asia region. Date of first appointment on the Board : 19th January, 2012 Shareholding in the Company as on 31st March, 2020 Directorships and Committee memberships held in other companies as on 31st March, 2020 : 2,01,478 Equity Shares CoCoCoCoCommmmmpppppaaaaannnnnies/B ies/B ies/B ies/Booooodddddies Co ies Co ies Co ies Corprprprprpooooorrrrraaaaattttte)e)e)e)e) ies/B ies Co : DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip (p (p (p (p (exexexexexclclclclcludududududiiiiinnnnng Fg Fg Fg Fg Fooooorrrrreigeigeigeigeignnnnn MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in Co n Con Co n Co n Commmmmmmmmmitititititttttteeeeeeseseseses Inter-se relationships between Directors, Manager and other Key Managerial Personnel No. of Board Meetings attended during the Financial year 2019-20 Terms and conditions of re-appointment Details of last drawn remuneration and proposed remuneration Pearl Global Industries Limited PS Arts Private Limited SBUYS E-Commerce Limited Member of Finance Committee - - : Wife of Mr. Pulkit Seth; and daughter in-Law of Mr. Deepak Seth : 1 out of 4 : Mrs. Shifalli Seth has been appointed as Director, liable to retire by rotation. : Last drawn remuneration: ` 6.25 Lakh per month. Proposed: Nil Mrs. Shifalli Seth, the retiring Director, being eligible, offers herself for re-appointment. The Board of Directors of your Company propose to appoint Mrs. Shifalli Seth as a Director, liable to retire by rotation and therefore this Resolution is recommended for approval of the Shareholders of the Company. None of the Directors & Key Managerial Personnel, except Mrs. Shifalli Seth, herself, Mr. Deepak Seth, Mr. Pulkit Seth and Mrs. Payel Seth, being relatives, are interested, whether directly or indirectly, in this Resolution. Your Directors recommend the passing of the resolution at Item no. 2 as an Ordinary Resolution. ika Bhhhhhuuuuupppppaaaaatttttkakakakakar (Dr (Dr (Dr (Dr (DIIIIIN 08712718) N 08712718) N 08712718) ika B IIIIIttttteeeeem nom nom nom nom no.3 : M.3 : M.3 : M.3 : M.3 : Mrsrsrsrsrs. M. M. M. M. Madadadadaduuuuulllllika B ika B N 08712718) N 08712718) ika B Age Qualifications Experience (including expertise in specific functional area) / Brief resume : 64 years : Degree in B.Sc., Post Graduate Diploma in Dietetics and B.Ed. : With over 30 years of experience in academics and held position as Principal in various educational institutions and having experience in general management. Pearl Global Industries Limited Annual Report 2019-20 19 Notice (contd...) Date of first appointment on the Board : 18th March, 2020 Shareholding in the Company as on 31st March, 2020 Directorships and Committee memberships held in other companies as on 31st March, 2020 : NIL : DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip (p (p (p (p (exexexexexclclclclcludududududiiiiinnnnnggggg ies Corprprprprpooooorrrrraaaaattttte)e)e)e)e) ies Co BBBBBooooodddddies Co ies Co ies Co n Commmmmmmmmmitititititttttteeeeeeseseseses n Con Co n Co MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in Co Inter-se relationships between Directors, Manager and other Key Managerial Personnel No. of Board Meetings attended during the Financial year 2019-20 Terms and conditions of appointment Details of last drawn remuneration and proposed remuneration Pearl Global Industries Limited Chairperson of CSR Committee, and Member of Audit Committee : Not related to any Director/ Key Managerial Personnel. : Nil : As per resolution at Item No.3 of the Notice convening this meeting read with explanatory statement thereto, Mrs. Madhulika Bhupatkar is proposed to be appointed as an Independent Director. : Last Drawn Remuneration: NIL Proposed Remuneration: NIL except sitting fee (presently ` 10,000/- per meeting of the Board) as may be decided by the Board from time to time. IIIIIttttteeeeem nom nom nom nom no.4 & 6 M .4 & 6 M .4 & 6 M .4 & 6 Mrrrrr. U. U. U. U. Ummmmma Sha Sha Sha Sha Shaaaaannnnnkakakakakar Ka r Ka r Ka r Kauuuuushshshshshik (Dik (Dik (Dik (Dik (DIIIIIN 06867819) N 06867819) N 06867819) N 06867819) .4 & 6 M r Ka N 06867819) Age Qualifications Experience (including expertise in specific functional area)/Brief resume : 47 years : Bachelor Degree in Arts from Delhi University and Executive Post Graduate Diploma in HR & Personnel Management from IMT Ghaziabad : Having more than 21 years experience in the field of the HR and Administration and currently heading the HR and Administration functions of the Company. Date of first appointment on the Board : 28th July, 2020 Shareholding in the Company as on 31st March, 2020 Directorships and Committee memberships held in other companies as on 31st March, 2020 : Nil n Commmmmmmmmmitititititttttteeeeeeseseseses n Con Co n Co : DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip (p (p (p (p (exexexexexclclclclcludududududiiiiinnnnng Fg Fg Fg Fg Fooooorrrrreigeigeigeigeignnnnn MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in Co ies Corprprprprpooooorrrrraaaaattttte)e)e)e)e) ies Co ies/Booooodddddies Co ies Co ies/B CoCoCoCoCommmmmpppppaaaaannnnnies/B ies/B ies Co ies/B Inter-se relationships between Directors, Manager and other Key Managerial Personnel No. of Board Meetings attended during the Financial year 2019-20 Terms and conditions of appointment Details of last drawn remuneration and proposed remuneration PKW Associates Private Ltd NIL : Not related to any Director/ Key Managerial Personnel. : Not Applicable : As per resolution at Item No. 4&5 of the Notice convening this meeting read with explanatory statement thereto, Mr. Uma Shankar Kaushik is proposed to be appointed as Director and Whole-Time Director. : Last drawn remuneration: ` 1,87,528/- per month, as Assistant Vice- President (HR & Admin) Proposed remuneration: ` 1,87,528 per month 20 Pearl Global Industries Limited Annual Report 2019-20 Notice (contd...) ilesh Kuuuuummmmmaaaaar (Dr (Dr (Dr (Dr (DIIIIIN 08897225) N 08897225) N 08897225) ilesh K .5 & 7 Mrrrrr. Sh. Sh. Sh. Sh. Shaaaaailesh K ilesh K .5 & 7 M IIIIIttttteeeeem nom nom nom nom no.5 & 7 M .5 & 7 M N 08897225) N 08897225) ilesh K .5 & 7 M Age Qualifications Experience (including expertise in specific functional area)/Brief resume : 51 years : Bachelor degree in Science from Magadh University, Post Graduate Diploma in Personnel Management & Industrial Relations from LNMI Patna and Diploma in Labour Laws with Administrative Law from Annamalai University. : Having more than 26 years of experience in the field of HR and Personnel Management and Labour Laws Compliances and currently heading HR functions of Knits division of the Company. : Nil : Nil Date of first appointment on the Board : 7th October, 2020 Shareholding in the Company as on 31st March, 2020 Directorships and Committee memberships held in other companies as on 31st March, 2020 Inter-se relationships between Directors, Manager and other Key Managerial Personnel No. of Board Meetings attended during the Financial Year 2019-20 Terms and conditions of appointment : Not Applicable : Not related to any Director/ Key Managerial Personnel. : As per resolution at Item No. 5&7 of the Notice convening this meeting read with explanatory statement thereto, Mr. Shailesh Kumar is proposed to be appointed as Director and Whole-Time Director. Details of last drawn remuneration and proposed remuneration : Last drawn remuneration: ` 1,50,000/- per month, as DGM-HR (Knits) Proposed remuneration: ` 1,50,000 per month Place: Gurugram Date: October 07, 2020 By order of the Board of Directors l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo for PPPPPeaeaeaeaearrrrrl Glo l Glo l Glo (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy Pearl Global Industries Limited Annual Report 2019-20 21 Directors’ Report To the Members, Your Directors are pleased to present the 31st Annual Report and Audited Financial Statements for the financial year ended 31st March 2020, together with the Auditors’ Report thereon. WWWWWOOOOORRRRRKKKKKIIIIINNNNNG RG RG RG RG REEEEESSSSSUUUUULLLLLTS OTS OTS OTS OTS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Income from operations Other Income Profit before Tax Provision for Tax Profit After Tax Other comprehensive income Total comprehensive income SSSSSTTTTTAAAAATTTTTE OE OE OE OE OF TF TF TF TF THHHHHE AE AE AE AE AFFFFFFFFFFAAAAAIIIIIRRRRRS OS OS OS OS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY During the year, your Company’s consolidated income from operations was ` 1,685.13 as against ` 1,757.50 Crore in the previous year and Net Profit ` 21.72 Crore as against Net Profit ` 67.11 Crore in the previous year. The income from operations for the year under review for the Company on Standalone basis was ` 825.33 Crore as compared to ` 840.26 Crore in the previous year and Net Profit ` 5.01 Crore as compared to Net Profit ` 21.50 Crore in the previous year. Pearl Global Industries Limited (PGIL) is one of the India’s largest listed garment exporters, manufacturing from multiple sourcing regions within India and countries within South Asia. A preferred long-term vendor to most leading global brands, we are amongst the leading player in our Industry. Our mainstay business is to create value from competitively manufacturing and exporting fashion garments to leading global brands. Our product range includes knits, woven and bottoms (basic and complex designs) across men, women and kids wear segments. We have a well diversified and de-risked manufacturing base across India, Indonesia, Bangladesh and Vietnam. We have a total capacity to manufacture around 6.25 million garments per month (75 million garments per annum including own and outsourced facilities). Our revenue structure is primarily export based, with a major contribution coming from exports to the United States. We provide total supply chain solutions to customers-value retailers and high end fashion brand, retails in the United States and Europe. Our business model enables us to offer superior quality products across various countries, catering (` in Crore) SSSSStttttaaaaandndndndndaaaaalololololonenenenene CoCoCoCoConnnnnsososososolllllidididididaaaaattttteeeeeddddd 2019-20 2019-20 2019-20 2019-20 2019-20 825.33 33.38 10.90 5.89 5.01 (5.57) (0.56) 2018-19 2018-19 2018-19 2018-19 2018-19 840.26 26.30 31.85 10.35 21.50 1.32 22.82 2019-20 2019-20 2019-20 2019-20 2019-20 1,685.13 49.06 31.23 9.51 21.72 21.74 43.46 2018-19 2018-19 2018-19 2018-19 2018-19 1,757.50 33.93 82.94 15.83 67.11 14.73 81.84 to all kinds of consumers. Our esteemed global clientele includes premium retailers in USA and Europe, including GAP, Banana Republic, Kohl’s, Macy, Joe Fresh, Walmart, M&S, Target Australia, Zara, Ralph Lauren, Next, Tom Tailor, Old Navy, Muji among others. We strive to be the most preferred vendor to the top global apparel brands and be ranked amongst the top garment manufacturers in the world, in terms of quality, service standards and ultimately-customers satisfaction, keeping in line with our broader vision. We are geographically well positioned to produce from the most cost effective supply bases in Asia, keeping us highly competitive and relevant to our customers. We expect to maintain and step up our profitability from superior value added products and meticulous management of our costs and processes. MMMMMAAAAATTTTTEEEEERRRRRIIIIIAAAAAL IL IL IL IL IMMMMMPPPPPAAAAACCCCCT OT OT OT OT OF CF CF CF CF COVOVOVOVOVIIIIIDDDDD-19 P -19 PAAAAANNNNNDDDDDEEEEEMMMMMIIIIICCCCC -19 P -19 P -19 P OOOOON CN CN CN CN COOOOOMMMMMPPPPPAAAAANNNNNYYYYY The Company’s manufacturing facilities remained shut from March 23, 2020 due to lockdown and partially re-opened w.e.f. May 04, 2020, which has impacted its operations during April and May 2020. The Company has restarted operations of factories considering order book and available workforce, since May 04, 2020, adhering to the safety norms prescribed by Government of India. April-June 2020 being lockdown months, the revenues and profitability of the Company are likely to be adversely impacted. As the business situation is very dynamic, the Company is closely monitoring it. Though we do hope the business situation should normalise during 3rd and 4th quarter. 22 Pearl Global Industries Limited Annual Report 2019-20 Directors’ Report (contd...) The Company’s capital and Banking facilities remain intact. There is no liquidity concern as we have sufficient unutilised Banking limits available. Further Banks have offered additional limits. With the virus now also affecting and disrupting global supply chains and economy for almost 3 to 6 months now, the situation is having a severe implication on the Indian economy as well. The areas that would face the crises created by COVID-19 pandemic are: i) Labour force and employment. ii) Import & Exports of raw material and readymade garments. iii) Cash flow constraints. iv) Supply chain disruption. v) Consumer sentiment. DDDDDIIIIIVVVVVIIIIIDDDDDEEEEENNNNNDDDDD The Board of Directors has not recommended any dividend for the financial year 2019-20. TTTTTRRRRRAAAAANSNSNSNSNSFEFEFEFEFER TR TR TR TR TO GO GO GO GO GEEEEENNNNNEEEEERRRRRAAAAAL RL RL RL RL REEEEESSSSSEEEEERRRRRVVVVVEEEEESSSSS The Board of Directors has decided to retain the entire amount of profits for the financial year 2019-20 in the Retained Earnings. DDDDD IIIII RRRRR E CE CE CE CE CTTTTTOOOOO RRRRR S A S A S A S ANNNNN D KD KD KD KD K EEEEEY MY MY MY MY MAAAAA NNNNNAAAAA GGGGG EEEEE RRRRR IIIIIAAAAA LLLLL S A PPPPPEEEEERRRRRSSSSSOOOOONNNNNNNNNNEEEEELLLLL Mr. Vinod Vaish has tendered his resignation from the Board of the Company with effect from April 30, 2020, due to personal reasons. The Board of Directors have taken on record its appreciation through Circular resolution dated May 20, 2020, on significant contributions made by Mr. Vinod Vaish, during his tenure as Whole-Time Director of the Company. In compliance with Regulation 17(1)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors have, on the recommendation of Nomination and Remuneration Committee, appointed Mrs. Madhulika Bhupatkar, as an additional Director in the category of Independent Women Director, with effect from March 18, 2020. Appointment of Mrs. Bhupatkar is subject to approval of shareholders in the forthcoming Annual General Meeting. Necessary Resolution for her appointment as Independent Women Director is proposed in the Notice calling 31st Annual General Meeting for approval of the Shareholders. The Company has received necessary declaration from each Independent Director of the Company that the Independent Directors meet with the criteria of their Independence as laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of your Company, Mrs Shifalli Seth, Director, would retire by rotation at the ensuing Annual General Meeting and being eligible, offer herself for re-appointment. The Board of Directors of your Company met four times on May 28, 2019, August 13, 2019, November 14, 2019, and February 13, 2020 during the financial year 2019-20. DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS' I' I' I' I' IDDDDDEEEEENNNNNTTTTTIIIIIFIFIFIFIFICCCCCAAAAATTTTTIIIIIOOOOON NN NN NN NN NUUUUUMMMMMBBBBBEEEEER (DR (DR (DR (DR (DIIIIIN)N)N)N)N) The following are the Directors Identification Number (DIN) of your Directors: NNNNNaaaaam em em em em e Mr. Deepak Seth Mr. Pulkit Seth Mrs. Shifalli Seth Mr. Anil Nayar DDDDDIIIIINNNNN NNNNNaaaaam em em em em e DDDDDIIIIINNNNN - 00036080 - 00003021 Mr. Chittranjan Dua - 00003044 Mr. Abhishek Goyal - 01928855 - 01388430 Mr. Rajendra Kumar Aneja - 00731956 - 01390190 Mr. Vinod Vaish - 01945795 (Till 30.04.2020) Mrs. Madhulika Bhupatkar - 08712718 Mr. Uma Shankar Kaushik - 06867819 (From 28.07.2020) Mr. Shailesh Kumar (From 07.10.2020) - 08897225 The Board of Directors has, on the recommendation of Nomination and Remuneration Committee, at its meeting held on July 28, 2020, appointed Mr. Uma Shankar Kaushik, as Additional Director and Whole-Time Director of the Company with effect from July 28, 2020. Appointment of Mr. Kaushik is subject to approval of shareholders in the forthcoming Annual General Meeting. Necessary Resolution for his appointment as Director and Whole-Time Director is proposed in the Notice calling 31st Annual General Meeting for approval of the Shareholders. The Nomination and Remuneration Committee at its meeting held on September 24, 2020, considered and recommended the candidature of Mr. Shailesh Kumar to appoint him as Director and Whole-Time Director of the Company. The Board of Directors has, on the recommendation of the Nomination and Remuneration Committee, appointed Mr. Shailesh Kumar as Additional Director and Whole-Time Director of the Company with effect from October 07, 2020, at its meeting held on October 07, 2020. Appointment of Mr. Shailesh Kumar is subject to Pearl Global Industries Limited Annual Report 2019-20 23 Directors’ Report (contd...) approval of shareholders in the forthcoming Annual General Meeting. Necessary Resolution for his appointment as Director and Whole-Time Director is proposed in the Notice calling 31st Annual General Meeting for approval of the Shareholders. Mr. Raghav Garg, Chief Financial Officer (CFO) of the Company, has tendered his resignation from the office of CFO with effect from June 30, 2020, due to personal reasons. The Board of Directors have taken on record its appreciation on the contributions made by him during his tenure as CFO of the Company. The Board of Directors has, on the recommendation of Nomination and Remuneration Committee, appointed Mr. Kashmir Singh Rathour as Chief Financial Officer of the Company in place of Mr. Raghav Garg, with effect from July 28, 2020. Mr. Rathour, aged about 49 years, holds Bachelor degree in Science and MBA (Finance) from H.P. University, Shimla and having more than 20 years experience in Finance & Accounts as well as Commercial Operations and General Administration, Taxation, Corporate Affairs, Strategic & Business Planning, Financial Planning, Budgeting, Working Capital Management, designing internal control systems, etc. BBBBBOOOOOAAAAARRRRRD ED ED ED ED EVVVVVAAAAALLLLLUUUUUAAAAATTTTTIIIIIOOOOONNNNN The Board of Directors has carried out an annual evaluation of its own performance, committees and individual Directors pursuant to the provisions of the Companies Act, 2013 and Rules made there under. The performance of the Board was evaluated by the Board after seeking inputs from all the Directors on the basis of the criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning, etc. The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of the criteria such as the composition of committees, effectiveness of committee meetings, etc. The Board and the Nomination and Remuneration Committee reviewed the performance of the individual Directors on the basis of the criteria such as the contribution of the individual Director to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the Chairman was also evaluated on the key aspects of his role. In a separate meeting of independent Directors, performance of non-independent Directors, performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views of Executive Directors and Non-Executive Directors. The same was discussed in the Board meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its committees and individual Directors was also discussed. NNNNNOOOOOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND RD RD RD RD REEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON PN PN PN PN POOOOOLLLLLIIIIICCCCCYYYYY The Nomination and Remuneration Policy of the Company is annexed herewith as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIII with this report and also available on the website of the Company at http:// pearlglobal.com/investors/policy IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL FIL FIL FIL FIL FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL CL CL CL CL COOOOONNNNNTTTTTRRRRROOOOOLLLLLSSSSS The Company has in place adequate internal control system commensurate with the size, scale and complexity of operations. During the year, such controls were tested and no reportable material weakness in the design or operation was observed. AAAAAUUUUUDDDDDIIIIIT CT CT CT CT COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE The Board of Directors in its meeting held on July 28, 2020, have re-constituted the Audit Committee, consequent upon resignation of Mr. Vinod Vaish, from the Board of the Company and inducted Mrs. Madhulika Bhupatkar as member of the Committee. The current composition of the Committee comprises four Non-executive Independent Directors, namely Mr. Anil Nayar, Chairman, Mr. Abhishek Goyal, Mr. Rajendra Kumar Aneja and Mrs. Madhulika Bhupatkar, as Members of the Committee. All the recommendations made by the Audit Committee were accepted by the Board. VVVVVIIIIIGGGGGIIIIIL ML ML ML ML MECECECECECHHHHHAAAAANNNNNIIIIISSSSSMMMMM The Company has set up a Vigil Mechanism, which also incorporates a whistle blower policy in terms of Listing Agreement/Regulations made by the SEBI. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone no. or a letter through to the Vigilance Officer or to the Chairman of the Audit Committee. The policy on vigil mechanism and whistle blower policy may be accessed on the Company’s website at the link: http://pearlglobal.com/investors/policy CCCCCOOOOORRRRRPPPPPOOOOORRRRRAAAAATTTTTE SE SE SE SE SOOOOOCCCCCIIIIIAAAAAL RL RL RL RL REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTYYYYY The Corporate Social Responsibility Committee of the Company has formulated a Corporate Social Responsibility 24 Pearl Global Industries Limited Annual Report 2019-20 Directors’ Report (contd...) Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board. The CSR Policy may be accessed on the Company’s website at http://pearlglobal.com/investors/policy Your Company has identified an area of education and health care activities for the financial year 2019-20. The prescribed CSR amount for the financial year 2019-20 was ` 22.15 Lakh and which has been fully utilised. The Annual Report on CSR activities is annexed herewith as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIIIIII. SSSSSUUUUUBBBBBSSSSSIIIIIDDDDDIIIIIAAAAARRRRRY CY CY CY CY COOOOOMMMMMPPPPPAAAAANNNNNIIIIIEEEEESSSSS During the year under review, M/s SBUYS E-Commerce Limited has become wholly owned subsidiary of the Company. Pursuant to Section 129(3) of the Companies Act, 2013, a statement containing the salient features of the financial statements of the subsidiary companies is attached to the Financial Statements in Form AOC-1. The Company will make available the said financial statements and related detailed information of the subsidiary companies upon the request by any member of the Company. These financial statements will also be kept open for inspection by any member at the Registered Office of the Company. The financial statements of the Company, consolidated financial statements along with the relevant documents and separate audited accounts in respect of subsidiaries, are available on the website of the Company. The Policy of determining material subsidiaries as approved may be accessed on the Company’s website at http:// pearlglobal.com/investors/policy SSSSSTTTTTAAAAATTTTTUUUUUTTTTTOOOOORRRRRY AY AY AY AY AUUUUUDDDDDIIIIITTTTTOOOOORRRRRSSSSS Pursuant to the provisions of Section 139 of the Companies Act, 2013, M/s B.R. Gupta & Co. Chartered Accountants, New Delhi (Regn. No. 008352N) were appointed as Statutory Auditors of the Company, by the members of the Company in their 28th Annual General Meeting held on 28th September, 2017, for a period of five years, with effect from financial year 2017-18. SSSSSTTTTTAAAAATTTTTUUUUUTTTTTOOOOORRRRRY AY AY AY AY AUUUUUDDDDDIIIIITTTTTOOOOORRRRRSSSSS’ R’ R’ R’ R’ REEEEEPPPPPOOOOORRRRRTTTTT The Auditors’ has given qualified opinion in the Report of Consolidated Financial Statements for the financial year ended 31st March, 2020. The details of qualified opinion with explanation are given below: AAAAAudududududitititititooooorsrsrsrsrs’ Co ’ Co ’ Co ’ Commmmmmememememennnnnt ot ot ot ot onnnnn ’ Co ExExExExExppppplllllaaaaannnnnaaaaatttttioioioioionnnnn Based on the Management Representation given above and the Limited Review report of the subsequent period ended June 30, 2020 by the Component Auditor, it appears that there may not be any material adjustment in the carrying value of Inventory in the consolidated financial statements as at March 31, 2020. AAAAAudududududitititititooooorsrsrsrsrs’ q’ q’ q’ q’ quuuuuaaaaalllllifieifieifieifieified od od od od opppppiiiiinnnnnioioioioionnnnn ExExExExExppppplllllaaaaannnnnaaaaatttttioioioioion bn bn bn bn by ty ty ty ty the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd The inventories are carried in the consolidated balance sheet at ` 26,387.33 Lakh (As at March 31, 2019: ` 23,632.17 Lakh). In one of the subsidiary of the Holding Company, the component auditor of its subsidiary has reported that no physical counting against inventories as at March 31, 2020 was conducted by them due to the lockdown in Jakarta during the outbreak of COVID-19 and no other alternative procedures were performed. In consequence they were unable to carry out auditing procedures necessary to obtain adequate assurance regarding the quantities and condition of inventories of ` 2,542.30 Lakh (Equivalent US$ 3,372,199), appearing in the consolidated balance sheet. There were no other satisfactory auditing procedures that they could adopt to obtain sufficient evidence regarding the existence and valuation of such inventories. Management estimates that impact of Audit qualification is NIL, as management has performed complete inventory verification and sufficient checks and controls were performed while valuing the inventory at 31st March, 2020. Further, post re-opening of lockdown, Component Auditor have performed limited review and also performed all necessary checks as on 30th June, 2020. Component Auditor after satisfying themselves, have shared interim financial statements as on 30th June, 2020 without making any adjustment on account of above qualification. Also Component Auditor has given a clean review report stating that “nothing has come to our attention that causes us to believe that the interim financial statements do not fairly presents in all material respects, the interim financial position as at 30.6.20”. In view of above management believe no adjustment is required on account of above qualification. Pearl Global Industries Limited Annual Report 2019-20 25 Directors’ Report (contd...) Further, the Auditor’s Report for the Standalone Financial Statements do not contain any qualification, reservation or adverse remark. The Auditors’ Reports are enclosed with the financial statements in this Annual Report. SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRIIIIIAAAAAL AL AL AL AL AUUUUUDDDDDIIIIITTTTTOOOOORRRRR The Board has appointed Mr. Jayant Sood, Practising Company Secretary, proprietor of M/s. Jayant Sood & Associates., to conduct Secretarial Audit for the financial year 2019-20. The Secretarial Audit Report for the financial year 2019-20 is annexed herewith as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIIIIIIIIIII. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark. IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL AL AL AL AL AUUUUUDDDDDIIIIITTTTTOOOOORRRRR The Board has appointed M/s. S. S. Kothari Mehta & Company, Chartered Accountants, New Delhi (FRN. 000756N), as Internal Auditor for the financial year 2019- 20. CCCCCOOOOOSSSSST AT AT AT AT AUUUUUDDDDDIIIIITTTTTOOOOORRRRR Maintainance of cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013 is not applicable to your Company. EEEEEXXXXXTTTTTRRRRRAAAAACCCCCTS OTS OTS OTS OTS OF AF AF AF AF ANNNNNNNNNNUUUUUAAAAAL RL RL RL RL REEEEETTTTTUUUUURRRRRNNNNN Pursuant to the provisions of Section 92(3) of the Companies Act, 2013, and ruled made there under, as amended, an Extract of Annual Return of the Company is annexed herewith as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIVVVVV to this Report and also available on the Company's website at http:// www.pearlglobal.com/investors/annual-return. EEEEEXXXXXTTTTTEEEEENSNSNSNSNSIIIIIOOOOON ON ON ON ON OF AF AF AF AF AGGGGGMMMMM The Registrar of Companies, NCT of Delhi and Haryana, vide its Order dated 07th September, 2020 has granted extension of Two (2) months for holding Annual General Meeting of the Company for the financial year ended 31st March, 2020. RRRRREEEEELLLLLAAAAATTTTTEEEEED PD PD PD PD PAAAAARRRRRTTTTTY TY TY TY TY TRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOONSNSNSNSNS All related party transactions entered during the financial year were in ordinary course of the business and on arm’s length basis. No material related party transaction entered during the financial year by the Company. Members may refer to Note no.47 to the standalone financial statements which sets out related party disclosures pursuant to Ind AS-24. A disclosure on related party, as required under Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 is annexed as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-VVVVV. PPPPPAAAAARRRRRTTTTTIIIIICUCUCUCUCULLLLLAAAAARRRRRS OS OS OS OS OF LF LF LF LF LOOOOOAAAAANSNSNSNSNS, G, G, G, G, GUUUUUAAAAARRRRRAAAAANNNNNTTTTTEEEEEEEEEES AS AS AS AS ANNNNNDDDDD IIIIINNNNNVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTSTSTSTSTS Particulars of Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 is annexed as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-VIVIVIVIVI. FIFIFIFIFIXXXXXEEEEED DD DD DD DD DEEEEEPPPPPOOOOOSSSSSIIIIITSTSTSTSTS Your Company has not accepted any Fixed Deposits from Public or Shareholders during the year, nor has any unclaimed or unpaid deposits at the end of the financial year. RRRRRIIIIISSSSSK MK MK MK MK MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT The Company has implemented procedures and policies in place for risk management including identifying risk which may threaten the existence/operations of the Company. DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS’ R’ R’ R’ R’ REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY SY SY SY SY STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT Pursuant to the requirement under Section 134(5) of the Companies Act, 2013, with respect to Directors Responsibility Statement, your Directors state that: a) b) c) d) e) in the preparation of the annual accounts for the financial year ended 31st March 2020, the applicable accounting standards have been followed along with proper explanation relating to material departures. There are no material departures from the same; the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 31st March, 2020 and of the profit and loss of the Company for that period; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; the Directors have prepared the annual accounts on a ‘going concern’ basis; the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and 26 Pearl Global Industries Limited Annual Report 2019-20 Directors’ Report (contd...) f ) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively. LLLLLIIIIISSSSSTTTTTIIIIINNNNNGGGGG The shares of your Company are listed at BSE Limited and National Stock Exchange of India Limited, Mumbai. The listing fees to the Stock Exchanges for the year 2019-20 have been paid. RRRRREGEGEGEGEGIIIIISSSSSTTTTTRRRRRAAAAAR AR AR AR AR ANNNNND SD SD SD SD SHHHHHAAAAARRRRRE TE TE TE TE TRRRRRAAAAANSNSNSNSNSFEFEFEFEFERRRRR AAAAAGGGGGEEEEENNNNNTTTTT Link Intime India Pvt. Ltd is Company’s Registrars and Share Transfer Agent (RTA) as common agency both for physical and demat shares, as required under Securities Contract (Regulation) Act, 1956. The detail of RTA forms part of the Corporate Governance Report. CCCCCOOOOORRRRRPPPPPOOOOORRRRRAAAAATTTTTE GE GE GE GE GOVOVOVOVOVEEEEERRRRRNNNNNAAAAANNNNNCCCCCEEEEE Report on Corporate Governance along with the certificate of the Auditors, confirming compliance of conditions of Corporate Governance as stipulated under Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of the Annual report. MMMMMAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT DT DT DT DT DIIIIISSSSSCUCUCUCUCUSSSSSSSSSSIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD ANNNNNAAAAALLLLLYSYSYSYSYSIIIIISSSSS A detailed review of operations, performance and future outlook of the Company is given separately under the head “Management Discussion and Analysis”. BBBBBUUUUUSSSSSIIIIINNNNNEEEEESSSSSS RS RS RS RS REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY RY RY RY RY REEEEEPPPPPOOOOORRRRRTTTTT As per Regulation 34(2)(f ) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Business Responsibility Report is attached and forms part of this Annual Report. PPPPPAAAAARRRRRTTTTTIIIIICUCUCUCUCULLLLLAAAAARRRRRS OS OS OS OS OF EF EF EF EF EMMMMMPPPPPLLLLLOOOOOYYYYYEEEEEEEEEES AS AS AS AS ANNNNND RD RD RD RD REEEEELLLLLAAAAATTTTTEEEEEDDDDD DDDDDIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEESSSSS The details as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended from time to time, is annexed as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-VIIVIIVIIVIIVII to this report. Particulars of employees as required under Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended from time e- VIII to time, is annexed as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre- VIII e- VIII e- VIII to this report. e- VIII CCCCCOOOOONSNSNSNSNSEEEEERRRRRVVVVVAAAAATTTTTIIIIIOOOOON ON ON ON ON OF EF EF EF EF ENNNNNEEEEERRRRRGGGGGYYYYY, T, T, T, T, TECECECECECHHHHHNNNNNOOOOOLLLLLOOOOOGGGGGYYYYY AAAAA BBBBB SSSSS OOOOO RRRRR PPPPP TTTTT IIIII OOOOO N AN AN AN AN ANNNNN D FD FD FD FD FOOOOO RRRRR EEEEE IIIII GGGGG N EN EN EN EN E XXXXXCCCCC HHHHH AAAAA NNNNN GGGGG EEEEE EEEEEAAAAARRRRRNNNNNIIIIINNNNNGGGGGS AS AS AS AS ANNNNND OD OD OD OD OUUUUUTTTTTGGGGGOOOOO The particulars relating to conser vation of energ y, technology absorption, foreign exchange earnings and outgo, as required under Section 134(3)(m) is annexed as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIXXXXX to this report. DDDDDEEEEETTTTTAAAAAIIIIILLLLL S OS OS OS OS OF SF SF SF SF SIIIIIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT AT AT AT AT ANNNNND MD MD MD MD MAAAAATTTTTEEEEERRRRRIIIIIAAAAALLLLL OOOOORRRRRDDDDDEEEEERRRRR S PS PS PS PS PAAAAA SSSSSSSSSSEEEEED BD BD BD BD BY TY TY TY TY THHHHHE RE RE RE RE REGEGEGEGEGUUUUULLLLLAAAAATTTTTOOOOORRRRR S OS OS OS OS ORRRRR CCCCCOOOOO UUUUURRRRRTS OTS OTS OTS OTS OR TR TR TR TR TRRRRRIIIIIBBBBBUUUUUNNNNNAAAAALLLLL S IS IS IS IS IMMMMMPPPPPAAAAACCCCCTTTTT IIIIINNNNNG TG TG TG TG THHHHHEEEEE GGGGGOOOOOIIIIINNNNNG CG CG CG CG COOOOONNNNNCCCCCEEEEERRRRRN SN SN SN SN STTTTTAAAAATTTTTUUUUUS AS AS AS AS ANNNNND CD CD CD CD COOOOOMMMMMPPPPPAAAAANNNNNYYYYY ’’’’’SSSSS OOOOOPPPPPEEEEERRRRRAAAAATTTTTIIIIIOOOOONS INS INS INS INS IN FN FN FN FN FUUUUUTTTTTUUUUURRRRREEEEE No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and Company’s operations in future. RRRRR EEEEE PPPPP OOOOO RRRRRT OT OT OT OT ON IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL CL CL CL CL COOOOOMMMMMPPPPPLLLLLAAAAAIIIIINNNNNTS CTS CTS CTS CTS COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE SEEEEE XXXXXUUUUUAAAAA L HL HL HL HL HAAAAA RRRRR AAAAA SSSSS SSSSS MMMMM EEEEE NNNNN TTTTT----- SN SN SN SN Pursuant to the provisions of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013, Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the financial year 2019-20 one complaint received and resolved. SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRIIIIIAAAAAL SL SL SL SL STTTTTAAAAANNNNNDDDDDAAAAARRRRRDDDDDSSSSS The Company has complied with applicable Secretarial Standards issued by the Institute of the Company Secretaries of India. AAAAACCCCCKKKKKNNNNNOOOOOWWWWWLLLLLEEEEEDDDDDGGGGGEEEEEMMMMMEEEEENNNNNTTTTT The Directors of your Company are thankful to Bankers, Business Associates, Customers, Members, Government Bodies & Regulators for the continuous support received from them and place on record their appreciation for the sincere services rendered by the employees at all level. for and on behalf of the Board for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD Place: Gurugram Date: October 07, 2020 (D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H) CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN DIN 00003021 Pearl Global Industries Limited Annual Report 2019-20 27 Annexure-I to the Directors’ Report NONONONONOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND RED RED RED RED REMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON PON PON PON PON POLLLLLIIIIICCCCCYYYYY 1.1.1.1.1. OOOOOBBBBBJJJJJECECECECECTTTTTIIIIIVVVVVEEEEE The Nomination and Remuneration Committee and this Policy shall be in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Key Objectives of the Committee would be: 1.1.1.1.1.1.1.1.1.1. To guide the Board in relation to appointment and removal of Directors, Key Managerial Personnel and Senior Management. 1.2.1.2.1.2.1.2.1.2. To evaluate the performance of the members of the Board and provide necessary report to the Board for further evaluation of the Board. 1.3.1.3.1.3.1.3.1.3. To recommend to the Board on Remuneration payable to the Directors, Key Managerial Personnel and Senior Management. 1.4.1.4.1.4.1.4.1.4. To provide to Key Managerial Personnel and Senior Management reward linked directly to their effort, performance, dedication and achievement relating to the Company’s operations. 1.5.1.5.1.5.1.5.1.5. To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage. 1.6.1.6.1.6.1.6.1.6. To devise a policy on Board diversity 1.7.1.7.1.7.1.7.1.7. To develop a succession plan for the Board and to regularly review the plan; 2.2.2.2.2. DDDDDEEEEEFIFIFIFIFINNNNNIIIIITTTTTIIIIIOOOOONSNSNSNSNS 2.1.2.1.2.1.2.1.2.1. AAAAActctctctct means the Companies Act, 2013 and Rules framed thereunder, as amended from time to time. 2.2.2.2.2.2.2.2.2.2. BBBBB oooooaaaaarrrrrddddd means Board of Directors of the Company. 2.3.2.3.2.3.2.3.2.3. DiDiDiDiDirrrrreeeeectctctctctooooorsrsrsrsrs mean Directors of the Company. 2.4.2.4.2.4.2.4.2.4. KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel means 2.4.1. 2.4.1. 2.4.1. Chief Executive Officer or the 2.4.1. 2.4.1. Managing Director or the Manager; 2.4.2. 2.4.2. 2.4.2. Whole-time director; 2.4.2. 2.4.2. 2.4.3. 2.4.3. 2.4.3. Chief Financial Officer; 2.4.3. 2.4.3. 2.5.2.5.2.5.2.5.2.5. 2.4.4. 2.4.4. 2.4.4. Company Secretary; and 2.4.4. 2.4.4. 2.4.5. 2.4.5. 2.4.5. such other officer as may be prescribed. 2.4.5. 2.4.5. SSSSS eeeeennnnn i oi oi oi oi or Mr Mr Mr Mr Maaaaannnnnaaaaa ggggg eeeee m em em em em ennnnnttttt means Senior Management means personnel of the company who are members of its core management team excluding the Board of Directors. 3.3.3.3.3. PPPPPooooolllllicicicicicy foy foy foy foy for ar ar ar ar appppppppppoooooiiiiinnnnntttttmememememennnnnt at at at at and rnd rnd rnd rnd reeeeemovmovmovmovmovaaaaal of Di l of Dirrrrreeeeectctctctctooooorrrrr,,,,, l of Di l of Di l of Di KKKKKMMMMMP aP aP aP aP and Snd Snd Snd Snd Seeeeennnnnioioioioior Mr Mr Mr Mr Maaaaannnnnaaaaagggggeeeeemememememennnnnttttt 3.1.3.1.3.1.3.1.3.1. AAAAAppppppppppoooooiiiiinnnnntttttmememememennnnnt ct ct ct ct crrrrritititititeeeeerrrrria aia aia aia aia and qnd qnd qnd qnd quuuuuaaaaalllllificificificificificaaaaatttttioioioioionnnnnsssss::::: a)a)a)a)a) bbbbb))))) ccccc))))) The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as Director, KMP or at Senior Management level and recommend to the Board his / her appointment. A person should possess adequate qualification, expertise and experience for the position he / she is considered for appointment. The Committee has to decide whether discretion qualification, expertise and experience possessed by a person is sufficient / satisfactory for the concerned position. The Company shall not appoint or continue the employment of any person as Whole-time Director who has attained the age of seventy years. Provided that the term of the person holding this position may be extended beyond the age of seventy years with the approval of shareholders by passing a special resolution based on the explanatory statement annexed to the notice for such motion indicating the extension of for justification appointment beyond seventy years. 3.2.3.2.3.2.3.2.3.2. TTTTTeeeeerrrrrm / Tm / Tm / Tm / Tm / Teeeeennnnnuuuuurrrrreeeee a)a)a)a)a) Managing Director/Whole-time Director: The Company shall appoint or re- appoint any person as its Executive Chairman, Managing Director or Executive Director for a term not 28 Pearl Global Industries Limited Annual Report 2019-20 Annexure-I to the Directors’ Report bbbbb))))) - - - exceeding five years at a time. No re- appointment shall be made earlier than one year before the expiry of term. Independent Director: An Independent Director shall hold office for a term up to five consecutive years on the Board of the Company and will be eligible for re-appointment on passing of a special resolution by the Company and disclosure of such appointment in the Board’s report. No Independent Director shall hold office for more than two consecutive terms, but such Independent Director shall be eligible for appointment after expiry of three years of ceasing to become an Independent Director. Provided that an Independent Director shall not, during the said period of three years, be appointed in or be associated with the Company in any other capacity, either directly or indirectly. However, if a person who has already served as an Independent Director for 5 years or more in the Company as on October 1, 2014 or such other date as may be determined by the Committee as per regulatory requirement; he / she shall be eligible for appointment for one more term of 5 years only. At the time of appointment of Independent Director it should be ensured that number of Boards on which such Independent Director serves is restricted to seven listed companies as an Independent Director and three listed companies as an Independent Director in case such person is serving as a Whole-time Director of a listed company or such other number as may be prescribed under the Act. 4.4.4.4.4. 3.3.3.3.3.3.3.3.3.3. EEEEEvvvvvaaaaallllluuuuuaaaaatttttioioioioionnnnn The Committee shall carry out evaluation of performance of every Director, KMP and Senior Management Personnel at regular interval (yearly). 3.4.3.4.3.4.3.4.3.4. RRRRReeeeemovmovmovmovmovaaaaalllll Due to reasons for any disqualification mentioned in the Act or under any other applicable Act, rules and regulations thereunder, the Committee may recommend, to the Board with reasons recorded in writing, removal of a Director, KMP or Senior Management Personnel subject to the provisions and compliance of the said Act, rules and regulations. 3.5.3.5.3.5.3.5.3.5. RRRRRetetetetetiiiiirrrrreeeeemememememennnnnttttt The KMP and Senior Management Personnel shall retire as per the applicable provisions of the Act and the prevailing policy of the Company. The Board will have the discretion to retain the Director, KMP, Senior Management Personnel in the same position/ remuneration or otherwise even after attaining the retirement age, for the benefit of the Company. PPPPPooooolllllicicicicicy ry ry ry ry relelelelelaaaaatttttiiiiinnnnng tg tg tg tg to to to to to the Rhe Rhe Rhe Rhe Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion fon fon fon fon for tr tr tr tr thehehehehe W h oW h oW h oW h oW h ol el el el el e-----tttttiiiiime Di nd Seeeeennnnn i oi oi oi oi orrrrr nd S me Dirrrrreeeee c tc tc tc tc tooooorrrrr, K, K, K, K, KMMMMM P aP aP aP aP and S nd S me Di me Di nd S me Di MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel 4.1.4.1.4.1.4.1.4.1. GGGGGeeeeenenenenenerrrrraaaaalllll::::: a)a)a)a)a) and The remuneration / compensation / commission etc. to the Whole-time Director, KMP Senior Management Personnel will be determined by the Committee or as per policies framed by the committee. The remuneration / compensation / commission etc. shall be subject to the prior/post approval of the shareholders of the Company and Central Government, wherever required. bbbbb))))) to the existing Increments remuneration/ compensation structure may be recommended by the Committee to the Board which should be within the slabs approved by the Shareholders in the case of Whole-time Director. ccccc))))) Where any insurance is taken by the Company on behalf of its Whole-time Director, Chief Executive Officer, Pearl Global Industries Limited Annual Report 2019-20 29 Annexure-I to the Directors’ Report Chief Financial Officer, the Company Secretary and any other employees for indemnifying them against any liability, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel. Provided that if such person is proved to be guilty, the premium paid on such insurance shall be treated as part of the remuneration. o Wholelelelele-----tttttiiiiime / Ex 4.2.4.2.4.2.4.2.4.2. RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to Who me / Exeeeeecucucucucutttttiviviviviveeeee me / Ex me / Ex o Who o Who me / Ex o Who / M/ M/ M/ M/ Maaaaannnnnaaaaagggggiiiiinnnnng Di g Dirrrrreeeeectctctctctooooorrrrr, K, K, K, K, KMMMMMP aP aP aP aP and Snd Snd Snd Snd Seeeeennnnnioioioioiorrrrr g Di g Di g Di MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel::::: a)a)a)a)a) FFFFFixixixixixeeeeed pd pd pd pd paaaaayyyyy ::::: The Whole-time Director/ KMP and Senior Management Personnel shall be eligible for a monthly remuneration as may be approved by the Board on the recommendation of the Committee. The breakup of the pay scale and quantum of perquisites including, employer’s contribution to P.F, pension scheme, medical expenses, club fees etc. shall be decided and approved by the Board/ the Person authorized by the Board or the Committee. 5.5.5.5.5. bbbbb))))) MMMMMiiiiinnnnniiiiimmmmmuuuuum Rm Rm Rm Rm Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn::::: If, in any financial year, the Company has no profits or its profits are inadequate, the Company shall pay remuneration to its Whole-time Director in accordance with the provisions of Schedule V of the Act and if it is not able to comply with such provisions, with the previous approval of the Central Government. ccccc))))) PPPPPrrrrrovovovovovisioisioisioisioisionnnnns fos fos fos fos for exr exr exr exr excccccesesesesess rs rs rs rs reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn::::: If any Whole-time Director draws or receives, directly or indirectly by way of remuneration any such sums in excess of the limits prescribed under the Act or without the prior sanction of the Central Government, where required, he / she shall refund such sums to the Company and until such sum is refunded, hold it in trust for the Company. The Company shall not waive recovery of such sum refundable to it unless permitted by the Central Government. - Exeeeee c uc uc uc uc uttttti vi vi vi vi ve /e /e /e /e / - Ex 4.3.4.3.4.3.4.3.4.3. RRRRR eeeeemmmmmuuuuun en en en en errrrraaaaattttti oi oi oi oi on tn tn tn tn to No No No No Nooooonnnnn- Ex - Ex - Ex IIIIIndendendendendepppppeeeeendendendendendennnnnt Di t Dirrrrreeeeectctctctctooooorrrrr::::: t Di t Di t Di a)a)a)a)a) SitSitSitSitSittttttiiiiinnnnng Fg Fg Fg Fg Feeeeeeseseseses::::: The Non- Executive / Independent Director may receive remuneration by way of fees for attending meetings of Board or Committee thereof. Provided that the amount of such fees shall not exceed ` One Lac per meeting of the Board or Committee or such amount as may be prescribed by the Central Government from time to time. bbbbb))))) Stock Options: An Independent Director shall not be entitled to any stock option of the Company. MMMMMEEEEEMMMMMBBBBBEEEEERRRRRSSSSSHHHHHIIIIIPPPPP 5.15.15.15.15.1 The Committee shall consist of a minimum 3 non-executive directors, majority of them being independent. 5.25.25.25.25.2 Minimum two (2) members shall constitute a quorum for the Committee meeting. 5.35.35.35.35.3 Membership of the Committee shall be disclosed in the Annual Report. 5.45.45.45.45.4 Term of the Committee shall be continued unless terminated by the Board of Directors. 6.6.6.6.6. CCCCCHHHHHAAAAAIIIIIRRRRRPPPPPEEEEERRRRRSSSSSOOOOONNNNN 6.16.16.16.16.1 Chairperson of the Committee shall be an Independent Director. 6.26.26.26.26.2 Chairperson of the Board may be appointed as a member of the Committee but shall not be a Chairman of the Committee. 6.36.36.36.36.3 In the absence of the Chairperson, the members of the Committee present at the meeting shall choose one amongst them to act as Chairperson. 6.46.46.46.46.4 Chairman of the Nomination and 30 Pearl Global Industries Limited Annual Report 2019-20 Annexure-I to the Directors’ Report Remuneration Committee meeting could be present at the Annual General Meeting or may nominate some other member to answer the shareholders’ queries. 7.7.7.7.7. FRFRFRFRFREQEQEQEQEQUUUUUEEEEENNNNNCCCCCY OY OY OY OY OF MF MF MF MF MEEEEEEEEEETTTTTIIIIINNNNNGGGGGSSSSS 8.8.8.8.8. The meeting of the Committee shall be held at such regular intervals as may be required. CCCCCOOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEE ME ME ME ME MEEEEEMMMMMBBBBBEEEEERRRRRSSSSS’ I’ I’ I’ I’ INNNNNTTTTTEEEEERRRRREEEEESSSSSTSTSTSTSTS 8.18.18.18.18.1 A member of the Committee is not entitled to be present when his or her own remuneration is discussed at a meeting or when his or her performance is being evaluated. 8.28.28.28.28.2 The Committee may invite such executives, as it considers appropriate, to be present at the meetings of the Committee. 9.9.9.9.9. SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRYYYYY 10.10.10.10.10. The Company Secretary of the Company shall act as Secretary of the Committee. VOVOVOVOVOTTTTTIIIIINNNNNGGGGG 10.110.110.110.110.1 Matters arising for determination at Committee meetings shall be decided by a majority of votes of Members present and voting and any such decision shall for all purposes be deemed a decision of the Committee. 10.210.210.210.210.2 In the case of equality of votes, the Chairman of the meeting will have a casting vote. 11.11.11.11.11. NNNNNOOOOOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON DN DN DN DN DUUUUUTTTTTIIIIIEEEEESSSSS The duties of the Committee in relation to nomination matters include: 11.111.111.111.111.1 Ensuring that there is an appropriate induction in place for new Directors and members of Senior Management and reviewing its effectiveness; 11.211.211.211.211.2 Ensuring that on appointment to the Board, Non-Executive Directors receive a formal letter of appointment in accordance with the Guidelines provided under the Act; 11.311.311.311.311.3 Identifying and recommending Directors who are to be put forward for retirement by rotation. 11.411.411.411.411.4 Determining the appropriate size, diversity and composition of the Board; 11.511.511.511.511.5 Setting a formal and transparent procedure for selecting new Directors for appointment to the Board; 11.611.611.611.611.6 Evaluating the performance of the Board members and Senior Management in the context of the Company’s performance from business and compliance perspective; 11.711.711.711.711.7 Delegating any of its powers to one or more of its members or the Secretary of the Committee; and 11.811.811.811.811.8 Considering any other matters, as may be requested by the Board. 12.12.12.12.12. RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON DN DN DN DN DUUUUUTTTTTIIIIIEEEEESSSSS The duties of the Committee in relation to remuneration matters include: 12.112.112.112.112.1 to consider and determine the Remuneration Policy, based on the performance and also bearing in mind that the remuneration is reasonable and sufficient to attract retain and motivate members of the Board and such other factors as the Committee shall deem appropriate all elements of the remuneration of the members of the Board. 12.212.212.212.212.2 to approve the remuneration of the Senior Management including key managerial personnel of the Company maintaining a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the Company. 12.312.312.312.312.3 to delegate any of its powers to one or more of its members or the Secretary of the Committee. 12.412.412.412.412.4 to consider any other matters as may be requested by the Board. 12.512.512.512.512.5 Professional indemnity and liability insurance for Directors and senior management. Pearl Global Industries Limited Annual Report 2019-20 31 Annexure-II Annual Report on CSR activities 1. Over the year, we have been focusing on sustainable business practices encompassing economic, environmental and social imperatives that not only cover our business, but also that of communities around us. We had set up a Society namely Arpan Educational Society For Underprivileged Children in the year 2006. This was done to provide the free education to underprivileged children. Visit http://www.arpaneducation.com/index.html for more details and the activities of the Society. 2. Mr. Vinod Vaish has tendered his resignation from the Board of the Company with effect from April 30, 2020. Consequently, he has ceased to be as Chairman of the CSR Committee. The Board of Directors has in its meeting held on July 28, 2020 appointed Mrs. Madhulika Bhupatkar, Independent Women Director as Chairperson of the CSR Committee. The current composition of the CSR Committee comprises Mrs. Madhulika Bhupatkar, Chairperson, Mr. Pulkit Seth, and Mr. Anil Nayar as Members. 3. Average net profit of the Company for last three financial years: ````` 1,106.75 La 1,106.75 La 1,106.75 La 1,106.75 Lakkkkkhhhhh 1,106.75 La 4. Prescribed CSR expenditure (two percent of the amount mentioned in item 3 above): ````` 22.13 La 22.13 La 22.13 La 22.13 Lakkkkkhhhhh 22.13 La The Company has earmarked ` 22.15 Lakh for CSR expenditure for the financial year 2019-20. 5. Details of CSR spent during the financial year: (a) Total amount to be spent for the financial year: ` 22.15 Lakh (b) Amount unspent, if any: NIL (c) Manner in which the amount spent during the financial year is detailed below: (` in Lakh) SSSSSrrrrr..... CCCCCSSSSSR PR PR PR PR Prrrrrojojojojojeeeeectctctctct r activivivivivititititityyyyy r act r act NNNNNooooo..... ooooor act r act iiiiindendendendendennnnntttttifieifieifieifieifieddddd SSSSSeeeeectctctctctooooor ir ir ir ir in wn wn wn wn whhhhhichichichichich ct is ct is ttttthe Phe Phe Phe Phe Prrrrrojojojojojeeeeect is ct is ct is cccccovovovovoveeeeerrrrreeeeeddddd PPPPPrrrrrojojojojojeeeeectctctctcts os os os os or pr pr pr pr prrrrrooooogggggrrrrraaaaammmmmmesmesmesmesmes r otheheheheherrrrr r ot r ot (1) Looooocccccaaaaal Al Al Al Al Arrrrrea oea oea oea oea or ot (1) L (1) L r ot (1) L (1) L (2) Spppppeeeeecifcifcifcifcify ty ty ty ty the She She She She Stttttaaaaattttte ae ae ae ae andndndndnd (2) S (2) S (2) S (2) S disisisisistttttrrrrrict wict wict wict wict wheheheheherrrrre pe pe pe pe prrrrrojojojojojeeeeectctctctctsssss d d d d or pr pr pr pr prrrrrooooogggggrrrrraaaaammmmms ws ws ws ws waaaaasssss o o o o undendendendenderrrrrtttttaaaaakkkkkeeeeennnnn u u u u AAAAAmoumoumoumoumounnnnnt St St St St Spppppeeeeennnnnt ot ot ot ot on tn tn tn tn thehehehehe t out outttttlllllaaaaayyyyy t out ou AAAAAmoumoumoumoumounnnnnt ou et) Prrrrrojojojojojeeeeectctctctct PPPPPrrrrrojojojojojeeeeectctctctcts os os os os or Pr Pr Pr Pr Prrrrrooooogggggrrrrraaaaammmmmsssss et) P et) P (B(B(B(B(Budududududggggget) P et) P ub heads::::: ub heads ub heads SSSSSub heads ooooor Pr Pr Pr Pr Prrrrrooooogggggrrrrraaaaam wm wm wm wm wiseiseiseiseise ub heads ct expppppeeeeendndndndndititititituuuuurrrrreeeee ct ex ct ex (1) Dirrrrreeeeect ex (1) Di (1) Di ct ex (1) Di (1) Di on pn pn pn pn prrrrrojojojojojeeeeectctctctcts os os os os or pr pr pr pr prrrrrooooogggggrrrrraaaaammmmm pppppeeeeerrrrrioioioioioddddd o o o o heads heads (2) O(2) O(2) O(2) O(2) Ovvvvveeeeerrrrrheads heads heads CCCCCuuuuummmmmuuuuulllllaaaaatttttiviviviviveeeee AAAAAmoumoumoumoumounnnnnt st st st st spppppeeeeennnnnttttt::::: exexexexexpppppeeeeendndndndndititititituuuuurrrrreeeee DiDiDiDiDirrrrreeeeect oct oct oct oct or tr tr tr tr thhhhhrrrrrouououououggggghhhhh uuuuuptptptptpto to to to to to to to to to thehehehehe rrrrreeeeepppppooooorrrrrtttttiiiiinnnnnggggg iiiiimmmmmppppplelelelelemememememennnnntttttiiiiinnnnng ag ag ag ag agggggeeeeencncncncncyyyyy 1. 2. 3. Education and Promoting other initiatives Education Promoting Education and other initiatives Education Education and Promoting other initiatives Education 4. Health care activities TTTTTotototototaaaaalllll Promoting preventing Health care activities NCT of Delhi 15.65 15.65 15.65 Through Arpan NCT of Delhi NCT of Delhi NCT of Delhi 0.50 3.50 2.50 0.50 3.50 2.50 Educational Society For Underprivileged Children 0.50 Through Etasha Society 3.50 Through Sasakawa India Leprosy Foundation 2.50 Through Cancer Awareness Prevention and Early Detection Trust 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 22.15 6. Reasons for not spending the amount: Not applicable; as the Company has spent more than the minimum prescribed amount for CSR activities. 7. RRRRREEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY SY SY SY SY STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTSTSTSTSTS The Responsibility Statement of the CSR Committee of the Board of Directors of the Company is reproduced below: “The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR objectives and policy of the Company.” Place: Gurugram Date: October 07, 2020 (Pulkit Seth) Managing Director (Madhulika Bhupatkar) Chairman of CSR Committee 32 Pearl Global Industries Limited Annual Report 2019-20 Annexure-III to the Directors’ Report SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRIIIIIAAAAAL AL AL AL AL AUUUUUDDDDDIIIIIT RT RT RT RT REEEEEPPPPPOOOOORRRRRTTTTT l year er er er er endendendendended 31d 31d 31d 31d 31ssssst t t t t MMMMMaaaaarrrrrch, 2020 ch, 2020 ch, 2020 l yea he finnnnnaaaaancianciancianciancial yea l yea he fi FFFFFooooor tr tr tr tr the fi he fihe fi ch, 2020 ch, 2020 l yea [Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014] TTTTTo,o,o,o,o, TTTTThe Mhe Mhe Mhe Mhe Meeeeembmbmbmbmbeeeeersrsrsrsrs PPPPPeaeaeaeaearrrrrl Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo l Glo l Glo CCCCCIIIIIN: L74899D L1989PLLLLLC036849 C036849 C036849 L1989P L1989P N: L74899D N: L74899D C036849 N: L74899DL1989P L1989P C036849 N: L74899D A-3, Co A-3, Co A-3, Commmmmmmmmmuuuuunnnnnititititity Ce y Ce y Ce y Cennnnntttttrrrrre, Ne, Ne, Ne, Ne, Naaaaarrrrraaaaaiiiiinnnnna Ia Ia Ia Ia Indndndndnduuuuussssstttttrrrrriaiaiaiaial Al Al Al Al Arrrrreaeaeaeaea A-3, Co A-3, Co y Ce PPPPPhhhhhaaaaasesesesese-----IIIIII, NI, NI, NI, NI, Neeeeew Dw Dw Dw Dw Delelelelelhhhhhi-110028 i-110028 i-110028 i-110028 i-110028 We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Pearl Global Industries Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon. We report that: a) Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit. b) We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed, provide a reasonable basis for our opinion. c) We have not verified the correctness and appropriateness of the financial statements of the Company. d) Wherever required, we have obtained the Management representation about the compliances of laws, rules and regulations and happening of events etc. e) The compliance of the provisions of the corporate and other applicable laws, rules, regulations, standards is the responsibility of the management. Our examination was limited to the verification of procedures on test basis. f ) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client; g) h) *The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; *The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 and Securities and Exchange Board of India (Buy-back of Securities) regulations, 2018; and i) The Securities and Exchange Board of India (Listing obligations and Disclosures requirements) Regulations, 2015; *No event took place under these regulations during the audit period. We have also examined compliance with the applicable clauses of the Secretarial Standard on Meetings of the Board of Directors and on General Meetings issued by The Institute of Company Secretaries of India, with which the company has generally complied with. During the Audit Period, the Company has complied with the provisions of the Act, Rules, Regulations and Guidelines to the extent applicable. Based on our verification of PPPPPeaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrriesiesiesiesies l Glo LLLLLiiiiimmmmmitititititeeeeeddddd’’’’’s s s s s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives, during the conduct of Secretarial Audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March, 2020 complied with the statutory provisions listed hereunder and also that the Company has ses and cccccooooommmmmpppppllllliaiaiaiaiancncncncnce me ppppprrrrrooooopppppeeeeer Br Br Br Br Boooooaaaaarrrrrddddd- p- p- p- p- prrrrrooooocccccesesesesesses e me e me e mechchchchchaaaaannnnnisisisisism m m m m in ses ses e me ses place to the extent, in the manner and subject to the reporting made hereinafter: We have examined the books, papers, minute books, forms and returns filed and there records maintained by PPPPPeaeaeaeaearrrrrlllll GloGloGloGloGlobbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries L ies Liiiiimmmmmitititititeeeeed d d d d (“the Company”) for the ies L ies L ies L financial year ended on 31st March, 2020, according to the provisions of (hereinafter to be referred as “Act” collectively) (Many of the Records were examined online due to Covid 19): WWWWWe e e e e have also examined compliance with the applicable Clauses / Regulations of the following: i.i.i.i.i. SSSSSeeeeecccccrrrrretetetetetaaaaarrrrriaiaiaiaial Sl Sl Sl Sl Stttttaaaaandndndndndaaaaarrrrrds is ds issssssueueueueued bd bd bd bd by Ty Ty Ty Ty The Ihe Ihe Ihe Ihe Innnnnssssstttttititititituuuuuttttte of e of e of ds is ds is e of e of ds is ies of Indndndndndiaiaiaiaia..... ies of I ies of I CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrries of I ies of I g Agrrrrreeeee eeeeem em em em em ennnnnttttts es es es es ennnnnttttteeeeerrrrreeeee d id id id id innnnnttttto bo bo bo bo by ty ty ty ty th eh eh eh eh e g Ag ii.ii.ii.ii.ii. TTTTThe Lhe Lhe Lhe Lhe Li si si si si stttttiiiiinnnnng Ag g Ag g Ag ck Exchchchchchaaaaannnnnggggge(s). e(s). e(s). ck Ex nd NSE SE SE SE SE Stttttooooock Ex ck Ex nd NS CoCoCoCoCommmmmpppppaaaaannnnny wy wy wy wy wititititith Bh Bh Bh Bh BSSSSSE aE aE aE aE and NS nd NS e(s). e(s). ck Ex nd NS d of Indndndndndia (Lia (Lia (Lia (Lia (Lisisisisistttttiiiiinnnnnggggg d of I nd Exchchchchchaaaaannnnnggggge Be Be Be Be Boooooaaaaarrrrrd of I d of I nd Ex nd Ex ies a iii. TTTTThe She She She She Seeeeecucucucucurrrrrititititities a ies a iii. iii. ies and Ex d of I nd Ex ies a iii. iii. Pearl Global Industries Limited Annual Report 2019-20 33 Annexure-III to the Directors’ Report O bO bO bO bO blllll i gi gi gi gi g aaaaattttti oi oi oi oi onnnnns as as as as and Disclos nd Disclosuuuuurrrrre Re Re Re Re Reeeee qqqqquuuuuiiiii rrrrreeeee m em em em em ennnnnttttts )s )s )s )s ) nd Disclos nd Disclos nd Disclos s, 2015. s, 2015. RRRRReeeeeggggguuuuulllllaaaaatttttioioioioionnnnns, 2015. s, 2015. s, 2015. During the period under review we found that the Company has complied with the various provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above are as follows: • Company has received the disclosure under Regulation 30(1) and 30(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and intimated to Stock Exchanges also. • Company has received declaration under Section 149(6) of the Companies Act, 2013 from all the Independent directors. • Company has adopted a conflict of interest policy, a code of business conduct setting out the Company’s requirements and process to report and deal with non compliance. • Company has made responsible the Compliance officer for oversight and management of these policies and procedures. • Company has established various policies as per the Companies Act, 2013 and listing agreement / SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, like, • CSR policy, Vigil Mechanism policy, Related Party Transaction Policy, Whistle Blower Policy and Directors appointment and remuneration policy. • Company has composite various committee(s) are as under: it Commmmmmmmmmitititititttttteeeeeeeeee::::: it Co 1.1.1.1.1. AAAAAudududududit Co it Co it Co Mr. Anil Nayar Mr. Rajendra K. Aneja - Member Director - Member Director Mr. Abhishek Goyal - Member Director Mr. Vinod Vaish - Chairman n Con Commmmmmmmmmitititititttttteeeeeeeeee::::: n Con Co 2.2.2.2.2. NNNNNooooommmmmiiiiinnnnnaaaaatttttioioioioion an an an an and Rnd Rnd Rnd Rnd Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion Co - Chairman Mr. Abhishek Goyal Mr. Rajendra K. Aneja - Member Director - Member Director Mr. Anil Nayar - Member Director Mr. Deepak Seth 3.3.3.3.3. SSSSStttttaaaaakkkkkehoehoehoehoeholdeldeldeldelders Rrs Rrs Rrs Rrs Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiip Co p Commmmmmmmmmitititititttttteeeeeeeeee::::: p Co p Co p Co Mr. Anil Nayar Mr. Pulkit Seth - Chairman - Member Director Mr. Vinod Vaish - Member Director Mr. Rajendra K. Aneja - Member Director 4.4.4.4.4. CCCCCSSSSSR CoR CoR CoR CoR Commmmmmmmmmitititititttttteeeeeeeeee::::: Mr. Vinod Vaish Mr. Pulkit Seth Mr. Anil Nayar e Commmmmmmmmmitititititttttteeeeeeeeee e Co 5.5.5.5.5. FFFFFiiiiinnnnnaaaaancncncncnce Co e Co e Co - Chairman - Member Director - Member Director Mr. Pulkit Seth Mrs. Shifalli Seth Mr. Vinod Vaish - Chairman - Member Director - Member Director 6.6.6.6.6. CoCoCoCoCommmmmpppppllllliaiaiaiaiancncncncnce Offic e Offic e Offic e Officeeeeerrrrr::::: e Offic Mr. Sandeep Sabharwal • The Company’s shares are in compulsory demat segment and are available for trading in the depository system of both NSDL and CDSL. As on 31st March 19368523 19368523 2020 the company has 19368523 19368523 shares in NSDL A/ 19368523 2154834 2154834 140580 140580 c, 2154834 2154834 shares in CDSL A/c and balance of 140580 140580 2154834 140580 are in physical mode. The Company’s shares in physical form are processed by the Registrar and Share Transfer Agent LLLLLiiiiinnnnnk Ik Ik Ik Ik Innnnntttttiiiiimememememe g office ae ae ae ae at Nt Nt Nt Nt Nooooobbbbble Hle Hle Hle Hle Heigeigeigeigeighhhhhttttts, 1s, 1s, 1s, 1s, 1sssssttttt IIIIIndndndndndia Pia Pia Pia Pia Pvvvvvt Lt Lt Lt Lt Ltttttd hd hd hd hd haaaaavvvvviiiiinnnnng offic g offic g offic g offic FFFFFlololololoooooorrrrr, N, N, N, N, NH 2 CH 2 CH 2 CH 2 CH 2 C-1 L-1 L-1 L-1 L-1 LSSSSSCCCCC, N, N, N, N, Neaeaeaeaear Sh r Shr Shaaaaavvvvvitititititrrrrri Mi Mi Mi Mi Maaaaarrrrrkkkkket,et,et,et,et, r Shr Sh JJJJJaaaaannnnnaaaaakkkkkpupupupupurrrrri, Ni, Ni, Ni, Ni, Neeeeew Dw Dw Dw Dw Delelelelelhhhhhi – 110 058, i – 110 058, i – 110 058, i – 110 058, and approved by i – 110 058, the Stakeholders Relationship Committee. Share transfer process also reviewed by the Board. • Investor’s Grievance Report during the Financial year: No. of Grievances Received - 3 No. of Grievances Attended - 3 No. of Grievances Pending - 0 • As informed to us there is no change in general character or nature of business / disruption of operations due to natural calamity/ dispute with a material impact during year. • The Company has published quarterly results during the year in time. s Commmmmmmmmmi ti ti ti ti tttttt eeeee e me VVVVVaaaaarrrrriouiouiouiouious Co nd mee te te te te tiiiii nnnnng of g of g of nd me s as and me nd me s as a e mee te te te te tiiiiinnnnnggggg s a e me e me s Co s Co g of g of nd me e me s Co t Dirrrrreeeeectctctctctooooorsrsrsrsrs::::: t Di IIIIIndendendendendepppppeeeeendendendendendennnnnt Di t Di t Di AAAAAudududududit Co it Commmmmmmmmmitititititttttteeeeeeeeee : : : : : During the Financial Year 2019-20 it Co it Co it Co Audit Committee met on 28.05.2019, 13.08.2019, 14.11.2019 and 13.02.2020 The Company has also maintained the proper record of the minutes of the meetings. 34 Pearl Global Industries Limited Annual Report 2019-20 Annexure-III to the Directors’ Report SSSSStttttaaaaakkkkkehoehoehoehoeholdeldeldeldelders Rrs Rrs Rrs Rrs Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiip Co p Commmmmmmmmmitititititttttteeeee eeeee : : : : : During the p Co p Co p Co Financial Year 2019-20 the committee met on 24/04/2019, 6/11/2019, 10/01/2020 and 06/03/2020. The Company has also maintained the proper record of the minutes of the meetings. e meetetetetetiiiiinnnnnggggg ::::: e me n Con Commmmmmmmmmitititititttttteeeeee me e me n Con Co NNNNNooooommmmmiiiiinnnnnaaaaatttttioioioioion an an an an and Rnd Rnd Rnd Rnd Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion Co e me The Committee met on 28/05/2019 and 13/02/2020 during the Financial Year 2019-20. e Commmmmmmmmmitititititttttteeeeeeeeee::::: e Co FFFFFiiiiinnnnnaaaaancncncncnce Co e Co e Co The Committee met on 30/04/2019, 20/05/2019, 08/07/ 2019, 03/08/2019, 16/09/2019, 24/10/2019, 14/11/2019, 06/12/2019, 18/12/2019 17/01/2020, 11/02/2020, 26/ 02/2020 during the Financial Year 2019-20. ’ meetetetetetiiiiinnnnnggggg ::::: ’ me t Dirrrrreeeeectctctctctooooorsrsrsrsrs’ me ’ me t Di IIIIIndendendendendepppppeeeeendendendendendennnnnt Di t Di ’ me t Di During the Financial Year 2019-20 the Independent Directors met on 02/03/2020. CCCCCSSSSSR CoR CoR CoR CoR Commmmmmmmmmitititititttttteeeeeeeeee::::: WWWWWe e e e e further report that: The Committee met on 28/05/2019 during the Financial Year 2019-20. The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. CoCoCoCoCommmmmpppppositositositositositioioioioion of t n of t n of t n of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd::::: n of t LLLLLIIIIISSSSST OT OT OT OT OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRS AS AS AS AS AS OS OS OS OS ON 31.03.2020 N 31.03.2020 N 31.03.2020 N 31.03.2020 N 31.03.2020 S. NS. NS. NS. NS. NOOOOO..... NNNNNAAAAAMMMMME AE AE AE AE ANNNNND FD FD FD FD FAAAAATTTTTHHHHHEEEEERRRRR’’’’’S NS NS NS NS NAAAAAMMMMME OE OE OE OE OF TF TF TF TF THHHHHE DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS 1 2 3 4 5 6 7 8 Mr. Deepak Seth S/o Late Shri Madan Lal Seth Mr. Pulkit Seth S/o Shri Deepak Seth Mrs. Shefali Seth D/o Shri Sunil Pal Seth Mr. Rajendra Kumar Aneja S/o Late Shri Hari Chand Aneja Mr. Chittranjan Dua S/o Late Shri Inder Dev Dua Mr. Anil Nayar S/o Late Shri Prakash Chand Nayar Mr. Vinod Vaish S/o Shri Motilal Vaish (R(R(R(R(Resigesigesigesigesignenenenened od od od od on 30n 30n 30n 30n 30ttttth h h h h AAAAAppppprrrrril 2020) il 2020) il 2020) il 2020) il 2020) Mr. Abhishek Goyal S/o Lt. Shri Berjesh Kumar Goyal 9. Mrs. Madhulika Bhupatkar D/o Dattatreya Ranganath Deo DDDDDIIIIINNNNN 00003021 00003044 01388430 00731956 00036080 01390190 01945795 01928855 08712718 Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. ils of Boooooaaaaarrrrrd Md Md Md Md Meeeeeetetetetetiiiiinnnnnggggg ::::: ils of B DDDDDetetetetetaaaaails of B ils of B ils of B Board has met four times during the financial year on: e of meetetetetetiiiiinnnnnggggg e of me S. NS. NS. NS. NS. Nooooo..... DDDDDaaaaattttte of me e of me e of me 1. 2. 3. 4. 28.05.2019 13.08.2019 14.11.2019 13.02.2020 DDDDDaaaaattttte of Ne of Ne of Ne of Ne of Notototototiciciciciceeeee 13.05.2019 29.07.2019 01.11.2019 29.01.2020 The Company has also maintained the proper record of the minutes of the meetings. Majority decision are carried through the Board (means unanimously) and there is no dissenting members’ views are captured and recorded as part of the minutes. Pearl Global Industries Limited Annual Report 2019-20 35 Annexure-III to the Directors’ Report AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg ::::: 1. The Air (Prevention and Control of Pollution) Act, During the Financial Year 2019-20 the Company has called 30th Annual General Meeting for the Financial Year 2018- 19 on 2424242424ttttth h h h h SSSSSeeeeeptptptptpteeeeembmbmbmbmbeeeeer 2019 r 2019 r 2019 r 2019 at Sri Sathya Sai International r 2019 Centre, Pragati Vihar (Near Pragati Vihar Hostel), Lodhi Road, New Delhi-110 003 The Company has kept the date of book Closure on 18th September 2019 to 24th September 2019 (both days inclusive). e of Stttttaaaaatttttuuuuutttttooooorrrrry Ry Ry Ry Ry Reeeeegggggisisisisisttttteeeeersrsrsrsrs::::: e of S MMMMMaaaaaiiiiinnnnnttttteeeeennnnnaaaaancncncncnce of S e of S e of S The Company has maintained the following Statutory Registers required under the Companies Act 2013. 1. Register of Members 2. Register of Directors and Key Managerial personnel 3. Register of Security held by the Director 4. Register of Loans, Investment and Guarantee 5. Register of Charge 6. Register of Contracts or Arrangements 7. Register of Transfer and Transmission. 8. Register of Renewal and Duplicate Shares Certificate DDDDDeeeeeclclclclclaaaaarrrrraaaaatttttioioioioion an an an an and Pnd Pnd Pnd Pnd Paaaaayyyyymememememennnnnt of Div t of Div t of Div t of Divideideideideidendndndndnd::::: t of Div The Dividend declared for the financial year ending 31st March 2019 is paid in prescribed time. The Board of Directors have declared final dividend ` 3/- per Equity Share of ` 10/- each for the financial year 2018-19. WWWWWe fe fe fe fe fuuuuurrrrrtttttheheheheher rr rr rr rr reeeeepppppooooorrrrrt tt tt tt tt thhhhhaaaaat t t t t there are adeadeadeadeadeqqqqquuuuuaaaaattttte se se se se sysysysysysttttteeeeemmmmms as as as as andndndndnd ppppprrrrrooooocccccesesesesesses ses ses ses in the Company commensurate with the size and ses o monnnnnitititititooooor ar ar ar ar and e operations of the Company ttttto mo nd end ennnnnsssssuuuuurrrrreeeee nd end e o mo o mo o mo cccccooooommmmmpppppllllliaiaiaiaiancncncncnce we we we we wititititith ah ah ah ah apppppppppplllllicicicicicababababable l le laaaaawswswswsws, rules, regulations and le l le l le l guidelines. s of s of he bus is is is is in e sn e sn e sn e sn e ss of he bu ies on tn tn tn tn the bu he bu ies o y cy caaaaarrrrrrrrrries o ies o y cy c he Commmmmppppp aaaaannnnny c he Co As tAs tAs tAs tAs the Co he Co s of s of he bu ies o he Co mmmmmaaaaannnnnuuuuufffff a c ta c ta c ta c ta c tuuuuurrrrriiiiinnnnnggggg , Ex t tt trrrrrade of ade of ade of t tt t , Exppppp ooooorrrrr t at at at at and Mnd Mnd Mnd Mnd Meeeeerrrrrc hc hc hc hc haaaaannnnnt t , Ex , Ex ade of ade of , Ex . As innnnnfofofofoforrrrrmememememed bd bd bd bd by ty ty ty ty the mhe mhe mhe mhe maaaaannnnnaaaaagggggeeeeemememememennnnnt,t,t,t,t, rrrrready . As i eadymmmmmade Gade Gade Gade Gade Gaaaaarrrrrmememememennnnntttttsssss. As i . As i eady eady . As i eady ttttthe fo cificaaaaallllllylylylyly cific cific laaaaaws, sws, sws, sws, sws, spppppeeeeecific cific cific l he follllllololololowwwwwiiiiinnnnng lg lg lg lg laaaaaws aws aws aws aws arrrrre te te te te the she she she she spppppeeeeecific l cific l he fo he fo cific cific l he fo he Commmmmpppppaaaaannnnnyyyyy;;;;; he Co le to to to to to the Co he Co le t aaaaapppppppppplllllicicicicicababababable t le t he Co le t 1981. 2. The Indian Boilers Act, 1923. 3. The Child Labour (Prohibition and Regulation) Act, 1986. 4. The Contract Labour (Regulation and Abolition) Act, 1970. 5. The Factories Act, 1948. 6. The Fatal Accidents Act, 1855. 7. The Industrial Disputes Act, 1947. 8. The Industrial Employment (Standing Orders) Act, 1946. 9. The Industries (Development and Regulation) Act, 1951. CoCoCoCoCommmmmpppppaaaaannnnny hy hy hy hy haaaaas es s es s es s estttttababababablllllishe ishe ishe ished vd vd vd vd vaaaaarrrrriouiouiouiouious ps ps ps ps pooooolllllicicicicicy ay ay ay ay and snd snd snd snd sysysysysysttttteeeeemmmmms as as as as asssss s es ishe pppppeeeeer tr tr tr tr the ab he ab he ab he abovovovovove ae ae ae ae apppppppppplllllicicicicicababababable Ale Ale Ale Ale Actctctctcts fos fos fos fos for ar ar ar ar allllll ul ul ul ul unnnnnititititits as as as as and wnd wnd wnd wnd wooooorrrrrkkkkk he ab PPPPPlllllacacacacaceseseseses..... We have Examined the records available and provided to us during our visit to 3 (three) units/ Plants (A) 446 Udyog Vihar Phase-V, Gurugram, Haryana (B) 16-17 Udyog Vihar Phase VI, Khandsa Gurugram Haryana (C) 274 Udyog Vihar Phase-II, Gurugram Haryana. For JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooood ad ad ad ad and As nd As nd As nd Assososososociaciaciaciaciattttteseseseses nd As Company Secretaries (C(C(C(C(CS JS JS JS JS Jaaaaayyyyyaaaaannnnnt K S t K Sooooooooooddddd))))) t K S t K S t K S Proprietor FCS: 4482, CP No. 22410 Place: Gurugram Date: 13th July 2020 F004482B000444121 F004482B000444121 F004482B000444121 UDIN: F004482B000444121 F004482B000444121 36 Pearl Global Industries Limited Annual Report 2019-20 Annexure-IV to the Directors’ Report FFFFFOOOOORRRRRM NM NM NM NM NOOOOO. MGT 9 . MGT 9 . MGT 9 . MGT 9 . MGT 9 EEEEEXXXXXTTTTTRRRRRAAAAACCCCCT OT OT OT OT OF AF AF AF AF ANNNNNNNNNNUUUUUAAAAAL RL RL RL RL REEEEETTTTTUUUUURRRRRNNNNN l year er er er er endendendendended od od od od on 31.03.2020 n 31.03.2020 n 31.03.2020 l yea As oAs oAs oAs oAs on fin fin fin fin finnnnnaaaaancianciancianciancial yea l yea n 31.03.2020 n 31.03.2020 l yea ct, 2013 and rnd rnd rnd rnd ruuuuule 12(1) of t he Commmmmpppppaaaaannnnnyyyyy he Co he Co le 12(1) of t le 12(1) of t ct, 2013 a he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act, 2013 a ct, 2013 a he Co he Co n 92 (3) of t PPPPPuuuuursrsrsrsrsuuuuuaaaaannnnnt tt tt tt tt to So So So So Seeeeectctctctctioioioioion 92 (3) of t n 92 (3) of t le 12(1) of the Co n 92 (3) of the Co he Co le 12(1) of t ct, 2013 a he Co n 92 (3) of t les, 2014. les, 2014. (M(M(M(M(Maaaaannnnnaaaaagggggeeeeemememememennnnnt & At & At & At & At & Admdmdmdmdmiiiiinnnnnisisisisistttttrrrrraaaaatttttioioioioionnnnn) Ru) Ru) Ru) Ru) Rules, 2014. les, 2014. les, 2014. I.I.I.I.I. RRRRREGEGEGEGEGIIIIISSSSSTTTTTRRRRRAAAAATTTTTIIIIIOOOOON & ON & ON & ON & ON & OTTTTTHHHHHEEEEER DR DR DR DR DEEEEETTTTTAAAAAIIIIILLLLLSSSSS::::: 1 CIN 2 Registration Date 3 Name of the Company 4 Category/Sub-category of the Company 5 Address of the Registered office & contact details 6 Whether listed company 7 Name, Address & contact details of the Registrar & Transfer Agent, if any. L74899DL1989PLC036849 05.07.1989 Pearl Global Industries Limited Public Limited Company / Limited by Shares A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028 Yes Link Intime India Private Limited, Noble Heights, 1st Floor, NH 2 C-1 Block LSC, Near Shavitri Market, Janakpuri, New Delhi – 110 058 Tel: 011-41410592 IIIIII.I.I.I.I. PPPPPRRRRRIIIIINNNNNCCCCCIIIIIPPPPPAAAAAL BL BL BL BL BUUUUUSSSSSIIIIINNNNNEEEEESSSSSS AS AS AS AS ACCCCCTTTTTIIIIIVVVVVIIIIITTTTTIIIIIEEEEES OS OS OS OS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY (All the business activities contributing 10 % or more of the total turnover of the company shall be stated) S.S.S.S.S. NNNNNaaaaame ame ame ame ame and Dnd Dnd Dnd Dnd Descescescescescrrrrriiiiiptptptptptioioioioion ofn ofn ofn ofn of s / serrrrrvvvvviciciciciceseseseses s / se s / se NNNNNooooo..... mmmmmaaaaaiiiiin pn pn pn pn prrrrroooooddddductuctuctuctucts / se s / se de of thehehehehe de of t de of t NNNNNIIIIIC CoC CoC CoC CoC Code of t de of t uct/serrrrrvvvvviciciciciceeeee uct/se uct/se PPPPPrrrrroooooddddduct/se uct/se % t% t% t% t% to to to to to totototototaaaaal tl tl tl tl tuuuuurrrrrnovnovnovnovnoveeeeerrrrr of tof tof tof tof the che che che che cooooommmmmpppppaaaaannnnnyyyyy 1 Manufacturing & Exporting of Readymade Gargments 141 100 IIIIIIIIIII.I.I.I.I. PPPPPAAAAARRRRRTTTTTIIIIICUCUCUCUCULLLLLAAAAARRRRRS OS OS OS OS OF HF HF HF HF HOOOOOLLLLLDDDDDIIIIINNNNNG, SG, SG, SG, SG, SUUUUUBBBBBSSSSSIIIIIDDDDDIIIIIAAAAARRRRRY AY AY AY AY ANNNNND AD AD AD AD ASSSSSSSSSSOOOOOCCCCCIIIIIAAAAATTTTTE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNIIIIIEEEEESSSSS he Commmmmpppppaaaaannnnnyyyyy he Co he Co s of t s of t nd addresesesesess of t nd addr nd addr S.S.S.S.S. NNNNNaaaaame ame ame ame ame and addr s of the Co he Co s of t nd addr NNNNNooooo..... CCCCCIIIIIN/GN/GN/GN/GN/GLLLLLN/FN/FN/FN/FN/FCCCCCRRRRRNNNNN HHHHHoooooldldldldldiiiiinnnnng/g/g/g/g/ ubsidiaiaiaiaiarrrrry/y/y/y/y/ ubsid ubsid SSSSSubsid ubsid AsAsAsAsAssososososociaciaciaciaciattttteeeee % of% of% of% of% of AAAAApppppppppplllllicicicicicababababablelelelele SSSSSeeeeectctctctctioioioioionnnnn shshshshshaaaaarrrrreseseseses heldheldheldheldheld 1 2 3 PPPPPeaeaeaeaearrrrrl Al Al Al Al Appppppppppaaaaarrrrrel Fel Fel Fel Fel Faaaaashshshshshioioioioionnnnns Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd (Formerly Lerros Fashions India Limited) A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028 PPPPPeaeaeaeaearrrrrl Glo l Kauuuuushshshshshaaaaal Vl Vl Vl Vl Vikaikaikaikaikas Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd l Ka l Globbbbbaaaaal Ka l Ka l Glo l Glo l Ka l Glo (Formerly Pixel Industries Limited))))) No.1/31, Thirukazhukundram Road, Karunguzhi, Maduranthagam Taluk, Kancheepuram, Tamil Nadu-603303 SSSSSBBBBBUUUUUYS EYS EYS EYS EYS E-----CoCoCoCoCommmmmmememememerrrrrccccce Le Le Le Le Liiiiimmmmmitititititeeeeeddddd A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028 U74900DL2007PLC161396 Subsidiary 100 2(87)(ii) U74110TN2014PLC096204 Subsidiary 100 2(87)(ii) U52100DL2019PLC355345 Subsidiary 100 2(87)(ii) 4 NNNNNooooorp Krp Krp Krp Krp Knnnnnit Iit Iit Iit Iit Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd C-52664(2959)/2004 Subsidiary 99.99 2(87)(ii) Vill: North Khailpur, P.O. National University, Gazipur, Bangladesh Pearl Global Industries Limited Annual Report 2019-20 37 Annexure-IV to the Directors’ Report S.S.S.S.S. NNNNNaaaaame ame ame ame ame and addr he Commmmmpppppaaaaannnnnyyyyy he Co he Co s of t nd addresesesesess of t s of t nd addr nd addr s of the Co he Co s of t nd addr NNNNNooooo..... CCCCCIIIIIN/GN/GN/GN/GN/GLLLLLN/FN/FN/FN/FN/FCCCCCRRRRRNNNNN 5 6 7 8 9 PPPPPeaeaeaeaearrrrrl Glo l Globbbbbaaaaal Fl Fl Fl Fl Faaaaarrrrreaeaeaeaeassssst Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd l Glo l Glo l Glo Unit: 801-3, 8/F, 9 Wing Hong Kong Street Cheung Sha Wan, Kowloon, Hong Kong PPPPPeaeaeaeaearrrrrl Glo l Globbbbbaaaaal (Hl (Hl (Hl (Hl (HK) LK) LK) LK) LK) Liiiiimmmmmitititititeeeeeddddd l Glo l Glo l Glo Unit: 801-3, 8/F, 9 Wing Hong Kong Street Cheung Sha Wan, Kowloon, Hong Kong PPPPPGGGGGIIIIIC IC IC IC IC Innnnnvvvvvesesesesestttttmememememennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd Unit: 801-3, 8/F, 9 Wing Hong Kong Street Cheung Sha Wan, Kowloon, Hong Kong l Globbbbbaaaaal Fl Fl Fl Fl F.....ZZZZZ.E.E.E.E.E l Glo l Glo PPPPPeaeaeaeaearrrrrl Glo l Glo SM-Office-E1-4013H, Ajman Free Zone, Ajman, UAE PPPPPrrrrrudeudeudeudeudennnnnt Ft Ft Ft Ft Faaaaashshshshshioioioioionnnnns Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd 29, Gareeb-E-Newaz Avenue,(4th Floor), Sector-11, Uttara , Dhaka, Bangladesh 10 g Zhou) T) T) T) T) Texexexexextttttileileileileile g Zhou g Zhou l Globbbbbaaaaal (Cl (Cl (Cl (Cl (Chhhhhaaaaannnnng Zhou l Glo l Glo PPPPPeaeaeaeaearrrrrl Glo g Zhou l Glo y Co., L., L., L., L., Ltttttddddd..... y Co y Co TTTTTeeeeechchchchchnononononololololologgggg y Co y Co Changzhou City, Jiangsu Province, China l Globbbbbaaaaal Vl Vl Vl Vl Vietietietietietnnnnnaaaaam Lm Lm Lm Lm Liiiiimmmmmitititititeeeeeddddd l Glo l Glo 11 VVVVViiiiin Pn Pn Pn Pn Peaeaeaeaearrrrrl Glo l Glo Unit: 801-3, 8/F, 9 Wing Hong Kong Street Cheung Sha Wan, Kowloon, Hong Kong 12 13 l Globbbbbaaaaal Vl Vl Vl Vl Vietietietietietnnnnnaaaaam Com Com Com Com Commmmmpppppaaaaannnnnyyyyy l Glo l Glo PPPPPeaeaeaeaearrrrrl Glo l Glo LLLLLiiiiimmmmmitititititeeeeeddddd Dinh Tri Commune, Bae Giang City, Bae Giang Province, Vietnam PPPPPeaeaeaeaearrrrrl Gr l Graaaaassssss Cs Cs Cs Cs Crrrrreaeaeaeaeatttttioioioioionnnnns Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd l Gr l Gr l Gr Unit: 801-3, 8/F, 9 Wing Hong Kong Street Cheung Sha Wan, Kowloon, Hong Kong A&B Innnnnvvvvvesesesesestttttmememememennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd A&B I A&B I 14 A&B I A&B I Po Box 60869, Dubai, UAE 15 DDDDDSSSSSSSSSSP Glo P Glo P Glo P Globbbbbaaaaal Ll Ll Ll Ll Liiiiimmmmmitititititeeeeeddddd P Glo Unit: 801-3, 8/F, 9 Wing Hong Kong Street Cheung Sha Wan, Kowloon, Hong Kong 16 PPPPPT PT PT PT PT Piiiiinnnnnnnnnnacle A acle Aacle A acle A acle Appppppppppaaaaarrrrrelselselselsels Graha Kirana Lt.1, Suite 103, JI. Yos Sudarso Kav. 88, Menara Kelapa Gading Kondominium Tower E605, Kelapa Gading-Jakarta Utara, Indonesia NA NA NA NA NA NA NA NA NA NA NA NA HHHHHoooooldldldldldiiiiinnnnng/g/g/g/g/ ubsidiaiaiaiaiarrrrry/y/y/y/y/ ubsid ubsid SSSSSubsid ubsid AsAsAsAsAssososososociaciaciaciaciattttteeeee % of% of% of% of% of AAAAApppppppppplllllicicicicicababababablelelelele SSSSSeeeeectctctctctioioioioionnnnn shshshshshaaaaarrrrreseseseses heldheldheldheldheld Subsidiary 100 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 99.95 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 80 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 100 2(87)(ii) Subsidiary 69.91 2(87)(ii) 38 Pearl Global Industries Limited Annual Report 2019-20 Annexure-IV to the Directors’ Report IIIIIVVVVV..... SSSSSHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDIIIIINNNNNG PG PG PG PG PAAAAATTTTTTTTTTEEEEERRRRRNNNNN (Equity share capital breakup as percentage of total equity) ise Shaaaaarrrrre He He He He Hoooooldldldldldiiiiinnnnnggggg ise Sh (((((iiiii))))) CCCCCaaaaattttteeeeegggggooooorrrrryyyyy-----wwwwwise Sh ise Sh ise Sh CCCCCaaaaattttteeeeegggggooooorrrrry of y of y of y of y of S hS hS hS hS haaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs Individual/ HUF AAAAA..... PPPPPrrrrrooooomotmotmotmotmoteeeeersrsrsrsrs (1) IIIIIndndndndndiaiaiaiaiannnnn a) b) Central Govt State Govt(s) c) d) Bodies Corp. e) Banks / FI f ) Any other ) (1) ) (1) SSSSSub Tub Tub Tub Tub Totototototaaaaal (l (l (l (l (AAAAA) (1) ) (1) ) (1) (2) FFFFFooooorrrrreigeigeigeigeignnnnn a) NRI Individuals b) Other Individuals c) Bodies Corp. d) Banks/FI e) Any other ) (2) ) (2) SSSSSub Tub Tub Tub Tub Totototototaaaaal (l (l (l (l (AAAAA) (2) ) (2) ) (2) TTTTTOOOOOTTTTTAAAAAL (L (L (L (L (AAAAA))))) ic Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg ic Sh ic Sh B.B.B.B.B. PPPPPububububublllllic Sh ic Sh 1.1.1.1.1. IIIIInsnsnsnsnstttttiiiiitttttutututututioioioioionsnsnsnsns a) Mutual Funds b) Banks / FI c) Central Govt d) State Govt(s) e) Venture Capital Funds f ) Alternate Investment Funds g) Insurance Companies h) FIIs i) j) Others (specify) SSSSSububububub-----tttttotototototaaaaal (B)(1):- l (B)(1):- l (B)(1):- l (B)(1):- l (B)(1):- Foreign Venture Capital Funds 2.2.2.2.2. NNNNNooooonnnnn-----IIIIInsnsnsnsnstttttiiiiitttttutututututioioioioionsnsnsnsns a) Bodies Corp. i) Indian es held at tt tt tt tt thehehehehe es held a . of Shaaaaarrrrres held a es held a . of Sh NNNNNooooo. of Sh . of Sh es held a . of Sh he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t DDDDDeeeeemmmmmaaaaattttt PPPPPhhhhhysicysicysicysicysicaaaaalllll TTTTTotototototaaaaalllll % of% of% of% of% of TTTTTotototototaaaaalllll ShShShShShaaaaarrrrreseseseses . of Shaaaaarrrrres held a NNNNNooooo. of Sh es held attttt es held a es held a . of Sh . of Sh es held a . of Sh he yearrrrr he yea he yea nd of t ttttthe ehe ehe ehe ehe end of t nd of t nd of the yea he yea nd of t DDDDDeeeeemmmmmaaaaattttt PPPPPhhhhhysicysicysicysicysicaaaaalllll TTTTTotototototaaaaalllll 11,562,734 - - 30 - - 11,562,764 2,862,145 - - - - 2,862,145 14,424,909 - 505,532 - - - 52,627 - 1,301,678 - - 1,859,837 - 11,562,734 - - - - 30 - - - - - - 11,562,764 2,862,145 - - - - - - - - - - 2,862,145 - 14,424,909 53.37% 11,562,734 - 0.00% - 0.00% 30 0.00% - 0.00% - 0.00% 53.37% 11,562,764 13.21% 2,862,145 - 0.00% - 0.00% 0.00% - 0.00% 13.21% 2,862,145 66.58% 14,424,909 - 66 - - - - - - - - 66 - 505,598 - - - 52,627 - 1,301,678 - - 1,859,903 - 0.00% 491,585 2.33% - 0.00% - 0.00% - 0.00% - 0.24% 0.00% - 6.01% 1,384,147 - 0.00% 0.00% - 8.59% 1,875,732 - - - - - - - - - - - - - - 66 - - - - - - - - 66 11,562,734 - - 30 - - 11,562,764 2,862,145 - - - - 2,862,145 14,424,909 - 491,651 - - - - - 1,384,147 - - 1,875,798 %%%%% CCCCChhhhhaaaaannnnngggggeeeee ddddduuuuurrrrriiiiinnnnnggggg he yearrrrr ttttthe yea he yea he yea he yea % of% of% of% of% of TTTTTotototototaaaaalllll ShShShShShaaaaarrrrreseseseses 53.37% 0.00% 0.00% 0.00% 0.00% 0.00% 53.37% 13.21% 0.00% 0.00% 0.00% 0.00% 13.21% 66.58% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -2.76% 2.27% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -100.00% 0.00% 0.00% 6.34% 6.39% 0.00% 0.00% 0.00% 0.00% 0.85% 8.66% 528,842 863 529,705 2.45% 512868 863 513,731 2.37% -3.02% Pearl Global Industries Limited Annual Report 2019-20 39 Annexure-IV to the Directors’ Report CCCCCaaaaattttteeeeegggggooooorrrrry of y of y of y of y of S hS hS hS hS haaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs b) ii) Overseas Individuals i) Individual shareholders holding nominal share capital upto ` 1 lakh ii) Individual shareholders holding nominal share capital in excess of ` 1 lakh c) NBFCs Registered with RBI c) Others (specify) Non Resident Indians(Non Repat) Non Resident Indians (Repat) Overseas Corporate Bodies Foreign Nationals Clearing Members Trusts Hindu Undivided Family Foreign Bodies - D R l (B)(2):- l (B)(2):- SSSSSububububub-----tttttotototototaaaaal (B)(2):- l (B)(2):- l (B)(2):- ic (B) ic (B) TTTTTotototototaaaaal Pl Pl Pl Pl Pububububublllllic (B) ic (B) ic (B) es held by Cy Cy Cy Cy Cuuuuussssstttttooooodddddiaiaiaiaiannnnn es held b es held b C.C.C.C.C. ShShShShShaaaaarrrrres held b es held b s & ADDDDDRRRRRsssss s & A s & A fofofofofor Gr Gr Gr Gr GDDDDDRRRRRs & A s & A GrGrGrGrGraaaaand Tnd Tnd Tnd Tnd Totototototaaaaal (l (l (l (l (A+B+C) A+B+C) A+B+C) A+B+C) A+B+C) g of Prrrrrooooomotmotmotmotmoteeeeerrrrr g of P (((((iiiiiiiiii))))) ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of P g of P g of P ShShShShShaaaaarrrrrehoehoehoehoeholdeldeldeldelderrrrr’’’’’s Ns Ns Ns Ns Naaaaamememememe S.S.S.S.S. NNNNNooooo..... es held at tt tt tt tt thehehehehe es held a . of Shaaaaarrrrres held a es held a . of Sh NNNNNooooo. of Sh . of Sh es held a . of Sh he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t DDDDDeeeeemmmmmaaaaattttt PPPPPhhhhhysicysicysicysicysicaaaaalllll TTTTTotototototaaaaalllll - - - % of% of% of% of% of TTTTTotototototaaaaalllll ShShShShShaaaaarrrrreseseseses 0.00% . of Shaaaaarrrrres held a NNNNNooooo. of Sh es held attttt es held a es held a . of Sh . of Sh es held a . of Sh he yearrrrr he yea he yea nd of t ttttthe ehe ehe ehe ehe end of t nd of t nd of the yea he yea nd of t DDDDDeeeeemmmmmaaaaattttt PPPPPhhhhhysicysicysicysicysicaaaaalllll TTTTTotototototaaaaalllll - - - %%%%% CCCCChhhhhaaaaannnnngggggeeeee ddddduuuuurrrrriiiiinnnnnggggg he yearrrrr ttttthe yea he yea he yea he yea 0.00% % of% of% of% of% of TTTTTotototototaaaaalllll ShShShShShaaaaarrrrreseseseses 0.00% 1,614,746 120,234 1,734,980 8.01% 1,482,191 117,439 1,599,630 7.38% -7.80% 2,276,887 100 49,165 195,207 - - 58,324 260 512,285 - 5,235,816 7,095,653 ----- - - - 22,212 - - - - - - 143,309 143,375 - 2,276,887 10.51% 2,527,265 100 0.00% - 49,165 217,419 - - 58,324 260 512,285 - 5,379,125 7,239,028 ----- 48,085 0.23% 179,674 1.00% - 0.00% - 0.00% 1,869 0.27% 260 0.00% 470,504 2.36% 0.00% - 24.83% 5,222,716 33.42% 7,098,448 - 0.00% - - - 22,212 - - - - - - 140,514 140,580 - 2,527,265 11.67% 11.00% - 0.00% -100.00% 48,085 201,886 - - 1,869 260 470,504 - 5,363,230 7,239,028 - -2.20% 0.22% -7.14% 0.93% 0.00% 0.00% 0.00% 0.00% 0.01% -96.80% 0.00% 0.00% -8.16% 2.17% 0.00% 0.00% -0.30% 24.76% 0.00% 33.42% 0.00% 0.00% 21,520,562 21,520,562 21,520,562 21,520,562 21,520,562 21,523,357 21,523,357 100.00% 100.00% 21,663,937 21,663,937 143,375 143,375 21,523,357 100.00% 21,523,357 21,663,937 100.00% 143,375 21,663,937 21,523,357 100.00% 21,663,937 143,375 143,375 100.00% 100.00% 21,663,937 21,663,937 140,580 140,580 100.00% 21,663,937 100.00% 140,580 21,663,937 100.00% 21,663,937 140,580 140,580 0.00% 0.00% 0.00% 0.00% 0.00% ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of t g of the yea he yea g of t ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea eeeeend of t nd of t nd of t nd of the yea he yea nd of t NNNNNooooo. of . of . of . of . of ShShShShShaaaaarrrrreseseseses % of% of% of% of% of tttttotototototaaaaalllll ShShShShShaaaaarrrrreseseseses of tof tof tof tof thehehehehe cccccooooommmmmpppppaaaaannnnnyyyyy % of% of% of% of% of ShShShShShaaaaarrrrreseseseses PPPPPleleleleledddddgggggeeeeed/d/d/d/d/ eeeeencuncuncuncuncum bm bm bm bm beeeeerrrrreeeeeddddd ttttto to to to to totototototaaaaalllll shshshshshaaaaarrrrreseseseses NNNNNooooo. of . of . of . of . of ShShShShShaaaaarrrrreseseseses % of% of% of% of% of tttttotototototaaaaalllll ShShShShShaaaaarrrrreseseseses of tof tof tof tof thehehehehe cccccooooommmmmpppppaaaaannnnnyyyyy % of% of% of% of% of ShShShShShaaaaarrrrreseseseses PPPPPleleleleledddddgggggeeeeed/d/d/d/d/ eeeeencuncuncuncuncum bm bm bm bm beeeeerrrrreeeeeddddd ttttto to to to to totototototaaaaalllll shshshshshaaaaarrrrreseseseses 1 Mr. Pulkit Seth 2 Mrs. Payel Seth 6,947,621 32.07% 4,413,635 20.37% 3 Mr. Deepak Seth (NRI) 2,862,145 13.21% 4 Mrs. Shifalli Seth 5 M/s NIM International Commerce LLP 201,478 30 0.93% 0.00% NIL NIL NIL NIL NIL 6,947,621 32.07% 4,413,635 20.37% 2,862,145 13.21% 201,478 30 0.93% 0.00% NIL NIL NIL NIL NIL % ch% ch% ch% ch% chaaaaannnnngggggeeeee iiiiin shn shn shn shn shaaaaarrrrreeeee hohohohoholdldldldldiiiiinnnnnggggg ddddduuuuurrrrriiiiinnnnnggggg he yearrrrr ttttthe yea he yea he yea he yea 0.00% 0.00% 0.00% 0.00% 0.00% 40 Pearl Global Industries Limited Annual Report 2019-20 Annexure-IV to the Directors’ Report e is no chaaaaannnnnggggge)e)e)e)e) e is no ch , if theheheheherrrrre is no ch e is no ch , if t se spppppeeeeecifcifcifcifcifyyyyy, if t , if t se s (((((iiiiiiiiiiiiiii) C) C) C) C) Chhhhhaaaaannnnnggggge ie ie ie ie in Pn Pn Pn Pn Prrrrrooooomotmotmotmotmoteeeeersrsrsrsrs’ Sh’ Sh’ Sh’ Sh’ Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng (g (g (g (g (ppppplealealealealease s se s e is no ch , if t se s PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs S.S.S.S.S. NNNNNooooo..... ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of t g of the yea he yea g of t CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg he yearrrrr ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yea At the beginning of the year Date wise increase/decrease in promoters shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/ transfer/bonus/sweat equity etc. NNNNNooooo. of . of . of . of . of shshshshshaaaaarrrrreseseseses 14,424,909 No Change duting the year % of t% of t% of t% of t% of totototototaaaaalllll shshshshshaaaaarrrrreseseseses NNNNNooooo. of . of . of . of . of shshshshshaaaaarrrrreseseseses 66.58% 14,424,909 % of t% of t% of t% of t% of totototototaaaaalllll shshshshshaaaaarrrrreseseseses 66.58% No Change No Change No Change At the end of the year 14,424,909 66.58% 14,424,909 66.58% rs of GDDDDDRRRRRs as as as as and And And And And ADDDDDRRRRRs):s):s):s):s): rs of G rs of G n Din Dirrrrreeeeectctctctctooooors, Prs, Prs, Prs, Prs, Prrrrrooooomotmotmotmotmoteeeeers ars ars ars ars and Hnd Hnd Hnd Hnd Hoooooldeldeldeldelders of G n Din Di n of tooooop tp tp tp tp teeeeen Shn Shn Shn Shn Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders (Ors (Ors (Ors (Ors (Otttttheheheheher tr tr tr tr thhhhhaaaaan Di n of t n of t (((((iv)iv)iv)iv)iv) ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng Pg Pg Pg Pg Paaaaatttttttttteeeeerrrrrn of t rs of G n of t NNNNNot Aot Aot Aot Aot Apppppppppplllllicicicicicababababablelelelele r each of thehehehehe r each of t r each of t FFFFFooooor each of t S.S.S.S.S. r each of t p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs p 10 sh p 10 sh NNNNNooooo..... TTTTTooooop 10 sh p 10 sh 11111 eshbeshbhhhhhaaaaai Shi Shi Shi Shi Shaaaaahhhhh eshbeshb jiv Dhiiiiirrrrreshb jiv Dh jiv Dh SSSSSaaaaannnnnjiv Dh jiv Dh DDDDDaaaaattttteeeee RRRRReaeaeaeaeasososososonnnnn ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg he yearrrrr he yea he yea ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea . of % of t% of t% of t% of t% of totototototaaaaalllll . of . of NNNNNooooo. of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses . of % of t% of t% of t% of t% of totototototaaaaalllll . of . of NNNNNooooo. of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses At the beginning of the year 01.04.2019 - 1,449,320 6.69% 1,449,320 Changes during the year 05.04.2019 Transfer 26,954 12.04.2019 Transfer 26.04.2019 Transfer 03.05.2019 Transfer 10.05.2019 Transfer 17.05.2019 Transfer 24.05.2019 Transfer 31.05.2019 Transfer 07.06.2019 Transfer 14.06.2019 Transfer 21.06.2019 Transfer 29.06.2019 Transfer 05.07.2019 Transfer 12.07.2019 Transfer 19.07.2019 Transfer 26.07.2019 Transfer 02.08.2019 Transfer 09.08.2019 Transfer 16.08.2019 Transfer 3,592 3,191 1,084 3,911 1,338 1,617 966 1,455 8,990 11,004 3,280 440 983 9,349 2,249 4,450 8,054 206 23.08.2019 Transfer 25,017 1,476,274 1,479,866 1,483,057 1,484,141 1,488,052 1,489,390 1,491,007 1,491,973 1,493,428 1,502,418 1,513,422 1,516,702 1,517,142 1,518,125 1,527,474 1,529,723 1,534,173 1,542,227 1,542,433 1,567,450 6.69% 6.81% 6.83% 6.85% 6.85% 6.87% 6.87% 6.88% 6.89% 6.89% 6.94% 6.99% 7.00% 7.00% 7.01% 7.05% 7.06% 7.08% 7.12% 7.12% 7.24% Pearl Global Industries Limited Annual Report 2019-20 41 Annexure-IV to the Directors’ Report FFFFFooooor each of t S.S.S.S.S. r each of thehehehehe r each of t r each of t r each of t p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs p 10 sh p 10 sh NNNNNooooo..... TTTTTooooop 10 sh p 10 sh DDDDDaaaaattttteeeee RRRRReaeaeaeaeasososososonnnnn ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg he yearrrrr ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yea . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses 06.09.2019 Transfer 13.09.2019 Transfer 20.09.2019 Transfer 27.09.2019 Transfer 16 50 210 30 08.11.2019 Transfer -49,402 06.12.2019 Transfer 10.01.2020 Transfer 17.01.2020 Transfer 14.02.2020 Transfer 21.02.2020 Transfer 06.03.2020 Transfer 20.03.2020 Transfer 9,679 910 6,953 7,719 7,226 2,400 33 At the end of the year 31.03.2020 22222 PPPPPrrrrreeeeemmmmmieieieieier Ir Ir Ir Ir Innnnnvvvvvesesesesestttttmememememennnnnt Ft Ft Ft Ft Fuuuuund Lnd Lnd Lnd Lnd Liiiiimmmmmitititititeeeeeddddd At the beginning of the year 01.04.2019 Changes during the year - At the end of the year 31.03.2020 33333 LLLLLTS ITS ITS ITS ITS Innnnnvvvvvesesesesestttttmememememennnnnt Ft Ft Ft Ft Fuuuuund Lnd Lnd Lnd Lnd Liiiiimmmmmitititititeeeeeddddd At the beginning of the year 01.04.2019 - - - - Changes during the year 12.04.2019 Transfer 19.04.2019 Transfer 26.04.2019 Transfer 03.05.2019 Transfer 10.05.2019 Transfer 17.05.2019 Transfer 24.05.2019 Transfer 31.05.2019 Transfer 07.06.2019 Transfer 14.06.2019 Transfer 21.06.2019 Transfer 29.06.2019 Transfer 05.07.2019 Transfer 12.07.2019 Transfer 19.07.2019 Transfer 1,051,231 - 4.85% 0.00% 250,447 1.16% 3,000 666 3,879 3,700 5,986 6,781 1,108 1,191 3,183 1,552 3,595 4,000 2,161 4,000 3,811 1,567,466 1,567,516 1,567,726 1,567,756 1,518,354 1,528,033 1,528,943 1,535,896 1,543,615 1,550,841 1,553,241 1,553,274 1,553,274 1,051,231 - 1,051,231 250,447 253,447 254,113 257,992 261,692 267,678 274,459 275,567 276,758 279,941 281,493 285,088 289,088 291,249 295,249 299,060 7.24% 7.24% 7.24% 7.24% 7.01% 7.05% 7.06% 7.09% 7.13% 7.16% 7.17% 7.17% 7.17% 4.85% 0.00% 4.85% 1.16% 1.17% 1.17% 1.19% 1.21% 1.24% 1.27% 1.27% 1.28% 1.29% 1.30% 1.32% 1.33% 1.34% 1.36% 1.38% 42 Pearl Global Industries Limited Annual Report 2019-20 Annexure-IV to the Directors’ Report FFFFFooooor each of t S.S.S.S.S. r each of thehehehehe r each of t r each of t r each of t p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs p 10 sh p 10 sh NNNNNooooo..... TTTTTooooop 10 sh p 10 sh DDDDDaaaaattttteeeee RRRRReaeaeaeaeasososososonnnnn ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg he yearrrrr ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yea . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses 26.07.2019 Transfer 02.08.2019 Transfer 09.08.2019 Transfer 16.08.2019 Transfer 23.08.2019 Transfer 30.08.2019 Transfer 06.09.2019 Transfer 20.09.2019 Transfer 27.09.2019 Transfer 08.11.2019 Transfer 06.12.2019 Transfer 5,813 5,216 5,921 1,220 4,867 2,892 1,456 3,100 1,371 1,000 1,000 304,873 310,089 316,010 317,230 322,097 324,989 326,445 329,545 330,916 331,916 332,916 332,916 256,666 - 256,666 1.41% 1.43% 1.46% 1.46% 1.49% 1.50% 1.51% 1.52% 1.53% 1.53% 1.54% 1.54% 1.18% 0.00% 1.18% 199,981 200,281 200,281 - 175,470 115,389 115,404 115,804 127,101 127,101 0.92% 0.92% 0.92% 0.81% 0.00% 0.81% 0.53% 0.53% 0.53% 0.59% 0.59% 256,666 - 1.18% 0.00% 227,292 1.05% 227,292 1.05% - - - - 227,292 1.05% 175,470 0.81% 175,470 - 115,389 0.53% 15 400 Changes during the year 01.11.2019 Transfer 300 199,981 0.92% At the end of the year 31.03.2020 n of Indndndndndiaiaiaiaia n of I n of I e Corprprprprpooooorrrrraaaaatttttioioioioion of I e Co e Co 44444 GGGGGeeeeenenenenenerrrrraaaaal Il Il Il Il Innnnnsssssuuuuurrrrraaaaancncncncnce Co n of I e Co At the beginning of the year 01.04.2019 Changes during the year - At the end of the year 31.03.2020 55555 n of Indndndndndiaiaiaiaia n of I n of I e Corprprprprpooooorrrrraaaaatttttioioioioion of I e Co e Co ife Innnnnsssssuuuuurrrrraaaaancncncncnce Co ife I ife I LLLLLife I n of I e Co ife I At the beginning of the year 01.04.2019 Changes during the year - At the end of the year 31.03.2020 66666 eshbeshbhhhhhaaaaaiiiii eshbeshb i Dhiiiiirrrrreshb i Dhi Dh i Dh ShShShShShaaaaah Sh Sh Sh Sh Saaaaannnnnjivbjivbjivbjivbjivbhhhhhaaaaai Dh At the beginning of the year 01.04.2019 - - - - - - - At the end of the year 31.03.2020 77777 VVVVViiiiirrrrraaaaat St St St St Seeeeerrrrrvvvvvicicicicices Les Les Les Les LLLLLLPPPPP At the beginning of the year 01.04.2019 Changes during the year - At the end of the year 31.03.2020 88888 ShShShShShaaaaah Kh Kh Kh Kh Krrrrriiiiinnnnnabababababeeeeen Sn Sn Sn Sn Saaaaannnnnjivbjivbjivbjivbjivbhhhhhaaaaaiiiii At the beginning of the year 01.04.2019 - - - Changes during the year 06.12.2019 Transfer 13.12.2019 Transfer At the end of the year 31.03.2020 20.12.2019 Transfer 11,297 Pearl Global Industries Limited Annual Report 2019-20 43 Annexure-IV to the Directors’ Report FFFFFooooor each of t S.S.S.S.S. r each of thehehehehe r each of t r each of t r each of t p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs p 10 sh p 10 sh NNNNNooooo..... TTTTTooooop 10 sh p 10 sh DDDDDaaaaattttteeeee RRRRReaeaeaeaeasososososonnnnn ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg he yearrrrr ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yea . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses 99999 NNNNNiiiiirrrrrmmmmmaaaaal Hl Hl Hl Hl Hiiiiirrrrroooooo Bo Bo Bo Bo Bhhhhhaaaaarrrrrwwwwwaaaaannnnniiiii At the beginning of the year 01.04.2019 Changes during the year - At the end of the year 31.03.2020 1010101010 VVVVVishishishishishaaaaal Rl Rl Rl Rl Raaaaameshbmeshbmeshbmeshbmeshbhhhhhaaaaai Pi Pi Pi Pi Paaaaatttttelelelelel At the beginning of the year 01.04.2019 - - - Changes during the year 15.11.2019 Transfer 13.12.2019 Transfer At the end of the year 31.03.2020 n Globbbbbaaaaal Sl Sl Sl Sl Seeeeecucucucucurrrrritititititiesiesiesiesies n Glo n Glo 1111111111 RRRRRajaajaajaajaajasssssttttthhhhhaaaaan Glo n Glo PPPPPrrrrrivivivivivaaaaattttte Le Le Le Le Liiiiimmmmmitititititeeeeeddddd 110,000 0.51% 110,000 - - 91,013 1,974 0.00% 0.42% - 110,000 - 91,013 92,987 92,987 At the beginning of the year 01.04.2019 - 100,008 0.46% 100,008 Changes during the year 12.04.2019 Transfer 10.05.2019 Transfer 24.05.2019 Transfer 31.05.2019 Transfer 09.08.2019 Transfer 29.11.2019 Transfer 20.12.2019 Transfer 27.12.2019 Transfer 31.01.2020 Transfer At the end of the year 31.03.2020 g of Dirrrrreeeeectctctctctooooors ars ars ars ars and Knd Knd Knd Knd Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel::::: g of Di (v)(v)(v)(v)(v) ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of Di g of Di g of Di -100 -2,544 -200 -5,639 -1,282 -6,515 -14,013 -2,314 1,863 99,908 97,364 97,164 91,525 90,243 83,728 69,715 67,401 69,264 69,264 0.51% 0.00% 0.51% 0.00% 0.42% 0.43% 0.43% 0.46% 0.46% 0.45% 0.45% 0.42% 0.42% 0.39% 0.32% 0.31% 0.32% 0.32% S.S.S.S.S. NNNNNooooo..... ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of each Di g of each Dirrrrreeeeectctctctctooooorsrsrsrsrs g of each Di g of each Di g of each Di nd each Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaialllll nd each K nd each K aaaaand each K nd each K DDDDDaaaaattttteeeee RRRRReaeaeaeaeasososososonnnnn ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg he yearrrrr ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yea PPPPPeeeeersorsorsorsorsonnnnnnelnelnelnelnel 11111 MMMMMrrrrr. D. D. D. D. Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Seteteteteth, Ch, Ch, Ch, Ch, Chhhhhaaaaaiiiiirrrrrmmmmmaaaaannnnn . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses At the beginning of the year 01.04.2019 - 2,862,145 13.21% 2,862,145 13.21% Changes during the year No Change At the end of the year 31.03.2020 22222 MMMMMrrrrr. P. P. P. P. Puuuuulllllkkkkkit Sit Sit Sit Sit Seteteteteth, Mh, Mh, Mh, Mh, Maaaaannnnnaaaaagggggiiiiinnnnng Di g Di g Di g Dirrrrreeeeectctctctctooooorrrrr g Di 2,862,145 13.21% At the beginning of the year 01.04.2019 6,947,621 32.07% 6,947,621 32.07% Changes during the year At the end of the year 31.03.2020 6,947,621 32.07% No Change 44 Pearl Global Industries Limited Annual Report 2019-20 Annexure-IV to the Directors’ Report S.S.S.S.S. NNNNNooooo..... ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of each Di g of each Dirrrrreeeeectctctctctooooorsrsrsrsrs g of each Di g of each Di g of each Di nd each Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaialllll nd each K nd each K aaaaand each K nd each K DDDDDaaaaattttteeeee RRRRReaeaeaeaeasososososonnnnn ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe he yearrrrr he yea he yea g of t g of t bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg he yearrrrr ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yea PPPPPeeeeersorsorsorsorsonnnnnnelnelnelnelnel h, Wholelelelele-----TTTTTiiiiime Dime Dime Dime Dime Dirrrrreeeeectctctctctooooorrrrr h, Who 33333 MMMMMrsrsrsrsrs. Sh. Sh. Sh. Sh. Shifififififaaaaalllllllllli Si Si Si Si Seteteteteth, Who h, Who h, Who . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses . of % of t% of t% of t% of t% of totototototaaaaalllll NNNNNooooo. of . of . of . of shshshshshaaaaarrrrreseseseses shshshshshaaaaarrrrreseseseses At the beginning of the year 01.04.2019 201,478 0.93% 201,478 0.93% Changes during the year At the end of the year 31.03.2020 201,478 0.93% No Change ish, Wholelelelele-----TTTTTiiiiime Dime Dime Dime Dime Dirrrrreeeeectctctctctooooorrrrr ish, Who 44444 MMMMMrrrrr. V. V. V. V. Viiiiinononononod Vd Vd Vd Vd Vaaaaaish, Who ish, Who ish, Who At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 t Dirrrrreeeeectctctctctooooorrrrr t Di t Di 55555 MMMMMrrrrr. C. C. C. C. Chhhhhititititittttttrrrrraaaaannnnnjajajajajan Dn Dn Dn Dn Duuuuuaaaaa, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di t Di At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 t Dirrrrreeeeectctctctctooooorrrrr t Di t Di 66666 MMMMMrrrrr. A. A. A. A. Annnnnil Nil Nil Nil Nil Naaaaayyyyyaaaaarrrrr, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di t Di At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 t Dirrrrreeeeectctctctctooooorrrrr t Di t Di 77777 MMMMMrrrrr. R. R. R. R. Rajajajajajeeeeendrndrndrndrndra Ka Ka Ka Ka Kuuuuummmmmaaaaar Ar Ar Ar Ar Anejanejanejanejaneja, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di t Di At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 t Dirrrrreeeeectctctctctooooorrrrr t Di t Di ishek Goooooyyyyyaaaaalllll, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di ishek G ishek G 88888 MMMMMrrrrr. A. A. A. A. Abbbbbhhhhhishek G t Di ishek G At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 t Dirrrrreeeeectctctctctooooorrrrr t Di ika Bika Bhhhhhuuuuupppppaaaaatttttkakakakakarrrrr, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di t Di ika Bika B 99999 MMMMMrsrsrsrsrs. M. M. M. M. Madadadadadhhhhhuuuuulllllika B t Di At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 l Officeeeeerrrrr l Offic 1010101010 MMMMMrrrrr. R. R. R. R. Raaaaaggggghhhhhaaaaav Gv Gv Gv Gv Gaaaaargrgrgrgrg, C, C, C, C, Chhhhhief Fief Fief Fief Fief Fiiiiinnnnnaaaaancianciancianciancial Offic l Offic l Offic At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 1111111111 MMMMMrrrrr. S. S. S. S. Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll, Co , Co , Co , Commmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy , Co At the beginning of the year 01.04.2019 Changes during the year At the end of the year 31.03.2020 - 0.00% No Change - - No Change - - No Change - - No Change - - No Change - - No Change - - No Change - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% No Change - 0.00% - - - - - - - - - - - - - - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Pearl Global Industries Limited Annual Report 2019-20 45 Annexure-IV to the Directors’ Report VVVVV..... IIIIINNNNNDDDDDEEEEEBBBBBTTTTTEEEEEDDDDDNNNNNEEEEESSSSSSSSSS Indebtedness of the Company including interest outstanding/accrued but not due for payment. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs SSSSSeeeeecucucucucurrrrreeeeed Ld Ld Ld Ld Loooooaaaaannnnnsssss g depppppositositositositositsssss g de g de exexexexexclclclclcludududududiiiiinnnnng de g de UUUUUnnnnnsesesesesec uc uc uc uc urrrrreeeeeddddd LLLLLoooooaaaaannnnnsssss DDDDDeeeeepppppositositositositositsssss (Amount. in `) TTTTTotototototaaaaalllll dnessssss dnes dnes ndebteeeeednes IIIIIndebt ndebt ndebt dnes ndebt l yearrrrr he finnnnnaaaaancianciancianciancial yea l yea l yea he fi he fi g of t dness as as as as at tt tt tt tt the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of t dnes ndebteeeeednes dnes IIIIIndebt ndebt ndebt g of the fi l yea he fi g of t dnes ndebt i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due i+ii+iii))))) TTTTTotototototaaaaal (l (l (l (l (i+ii+iii i+ii+iii i+ii+iii i+ii+iii l yearrrrr l yea l yea he finnnnnaaaaancianciancianciancial yea he fi he fi dness ds ds ds ds duuuuurrrrriiiiinnnnng tg tg tg tg the fi dnes dnes ndebteeeeednes ndebt ndebt CCCCChhhhhaaaaannnnnggggge ie ie ie ie in In In In In Indebt l yea he fi dnes ndebt * Addition * Reduction Net Change l yearrrrr l yea l yea he finnnnnaaaaancianciancianciancial yea he fi he fi nd of t nd of t dness as as as as at tt tt tt tt the ehe ehe ehe ehe end of t dnes dnes ndebteeeeednes ndebt ndebt IIIIIndebt nd of the fi l yea he fi nd of t dnes ndebt i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due Total (i+ii+iii) 2,025,459,287 - 2,467,226 2,027,926,513 15,435,254,586 15,239,080,081 196,174,505 2,221,633,792 - 3,748,058 2,225,381,850 - - - - - - - - - - - VVVVVI.I.I.I.I. RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON ON ON ON ON OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRS AS AS AS AS ANNNNND KD KD KD KD KEEEEEY MY MY MY MY MAAAAANNNNNAAAAAGGGGGEEEEERRRRRIIIIIAAAAAL PL PL PL PL PEEEEERRRRRSSSSSOOOOONNNNNNNNNNEEEEELLLLL nd/ond/or Mr Mr Mr Mr Maaaaannnnnaaaaagggggeeeeerrrrr::::: nd/ond/o , Wholelelelele-----tttttiiiiime Dime Dime Dime Dime Dirrrrreeeeectctctctctooooors ars ars ars ars and/o , Who , Who g Dirrrrreeeeectctctctctooooorrrrr, Who g Di g Di AAAAA..... RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to Mo Mo Mo Mo Maaaaannnnnaaaaagggggiiiiinnnnng Di , Who g Di rs of Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn rs of R rs of R PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of R rs of R S.S.S.S.S. NNNNNooooo..... me of MD/WD/WD/WD/WD/WTTTTTD/ MD/ MD/ MD/ MD/ Maaaaannnnnaaaaagggggeeeeerrrrr me of M me of M NNNNNaaaaame of M me of M - - - - 2,025,459,287 - 2,467,226 2,027,926,513 - 15,435,254,586 - 15,239,080,081 - - - - - 196,174,505 2,221,633,792 - 3,748,058 2,225,381,850 TTTTTotototototaaaaalllll AAAAAmoumoumoumoumounnnnnttttt i i i i in n n n n ` Name Designation 1 Gross salary MMMMMrrrrr. P. P. P. P. Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh MMMMMrsrsrsrsrs. Sh. Sh. Sh. Sh. Shifififififaaaaalllllllllli Si Si Si Si Setetetetethhhhh MMMMMrrrrr. V. V. V. V. Viiiiinononononod Vd Vd Vd Vd Vaaaaaishishishishish Managing Director Whole-Time Director Whole-Time Director (a) Salary as per provisions contained in section 17(1) 15,500,000 6,875,000 1,684,322 24,059,322 of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 28,800 28,800 43,542 101,142 (c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 2 3 4 Stock Option Sweat Equity Commission - - as % of profit others, specify - - - - - - - - - - - - - - - - - - - - - - - - 5 Others, please specify (Provident Fund) Total (A) Ceiling as per the Act 19,800 15,548,600 19,800 6,923,600 21,600 61,200 1,749,464 24,221,664 As per Schedule-V of the Companies Act, 2013 46 Pearl Global Industries Limited Annual Report 2019-20 Annexure-IV to the Directors’ Report r Dirrrrreeeeectctctctctooooorsrsrsrsrs r Di B.B.B.B.B. RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to oto oto oto oto otheheheheher Di r Di r Di rs of Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn rs of R PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of R rs of R rs of R S.S.S.S.S. NNNNNooooo..... 1 Independent Directors me of Dirrrrreeeeectctctctctooooorsrsrsrsrs me of Di NNNNNaaaaame of Di me of Di me of Di ishek MMMMMrsrsrsrsrs. M. M. M. M. Madadadadadhhhhhuuuuulllllikaikaikaikaika MMMMMrrrrr. C. C. C. C. Chhhhhititititittttttrrrrraaaaannnnnjajajajajannnnn MMMMMrrrrr. A. A. A. A. Annnnnil Nil Nil Nil Nil Naaaaayyyyyaaaaarrrrr MMMMMrrrrr. R. R. R. R. Rajajajajajeeeeendrndrndrndrndraaaaa MMMMMrrrrr. A. A. A. A. Abbbbbhhhhhishek ishek ishek ishek BBBBBhhhhhuuuuupppppaaaaatttttkakakakakarrrrr GGGGGoooooyyyyyaaaaalllll KKKKKuuuuummmmmaaaaar Ar Ar Ar Ar Anejanejanejanejaneja DDDDDuuuuuaaaaa Fee for attending board meetings Commission Others, please specify ( for attending Independent Directors Meeting) Total (1) 20,000 - 10,000 40,000 - 10,000 10,000 - - 40,000 - 10,000 30,000 50,000 10,000 50,000 2 Other Non-Executive Directors MMMMMrrrrr. D. D. D. D. Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh Fee for attending board committee meetings 20,000 Commission Others, please specify Total (2) Total (B)=(1+2) Total Managerial Remuneration Overall Ceiling as per the Act - - 20,000 50,000 - - - - - - - - - - - - 50,000 10,000 50,000 As per Schedule-V of Companies Act, 2013 nel otheheheheher tr tr tr tr thhhhhaaaaan Mn Mn Mn Mn MD/MD/MD/MD/MD/Maaaaannnnnaaaaagggggeeeeer/Wr/Wr/Wr/Wr/WTTTTTDDDDD nel ot nel ot C.C.C.C.C. RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to Ko Ko Ko Ko Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnel ot nel ot rs of Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn rs of R rs of R PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of R rs of R me of Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel me of K me of K NNNNNaaaaame of K me of K S.S.S.S.S. NNNNNooooo..... - - - - - - - - - TTTTTotototototaaaaalllll AAAAAmoumoumoumoumounnnnnttttt i i i i in n n n n ` 110,000 - 30,000 140,000 20,000 - - 20,000 160,000 24,381,664 TTTTTotototototaaaaalllll AAAAAmoumoumoumoumounnnnnttttt i i i i in n n n n ````` NNNNNaaaaam em em em em e DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn 1 Gross salary MMMMMrrrrr. R. R. R. R. Raaaaaggggghhhhhaaaaav Gv Gv Gv Gv Gaaaaargrgrgrgrg MMMMMrrrrr. S. S. S. S. Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll l Officeeeeerrrrr l Offic l Offic ief Fiiiiinnnnnaaaaancianciancianciancial Offic ief F ief F CCCCChhhhhief F l Offic ief F C oC oC oC oC ommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy (a) Salary as per provisions contained in section 17(1) 3,443,755 1,683,482 5,127,237 of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 2 3 Stock Option Sweat Equity 4 Commission - - as % of profit others, specify 5 Others, please specify Total - - - - - - - - 32,359 32,359 - - - - - - - - - - - - 3,443,755 1,715,841 5,159,596 Pearl Global Industries Limited Annual Report 2019-20 47 Annexure-IV to the Directors’ Report VVVVVIIIIII. PI. PI. PI. PI. PEEEEENNNNNAAAAALLLLLTTTTTIIIIIEEEEES / PS / PS / PS / PS / PUUUUUNNNNNIIIIISSSSSHHHHHMMMMMEEEEENNNNNT/ CT/ CT/ CT/ CT/ COOOOOMMMMMPPPPPOOOOOUUUUUNNNNNDDDDDIIIIINNNNNG OG OG OG OG OF OF OF OF OF OFFEFFEFFEFFEFFENNNNNCCCCCEEEEESSSSS::::: TTTTTypypypypypeeeee n of thehehehehe n of t SSSSSeeeeectctctctctioioioioion of t n of t n of t CoCoCoCoCommmmmpppppaaaaannnnnies Aies Aies Aies Aies Actctctctct BBBBBrrrrriefiefiefiefief DDDDDescescescescescrrrrriiiiiptptptptptioioioioionnnnn ils of Peeeeennnnnaaaaalllllttttty/y/y/y/y/ ils of P DDDDDetetetetetaaaaails of P ils of P ils of P PPPPPuuuuunnnnnishishishishishmememememennnnnt/t/t/t/t/ CoCoCoCoCommmmmpppppouououououndndndndndiiiiinnnnnggggg fefefefefees ies ies ies ies immmmmppppposeoseoseoseoseddddd AAAAAuuuuuttttthohohohohorrrrrititititity [Ry [Ry [Ry [Ry [RD /D /D /D /D / AAAAAppppppppppeaeaeaeaeal ml ml ml ml made, ade, ade, ade, ade, if aif aif aif aif annnnny (y (y (y (y (gggggiviviviviveeeee NNNNNCCCCCLLLLLT/CT/CT/CT/CT/COOOOOUUUUURRRRRTTTTT ]]]]] ils)ils) DDDDDetetetetetaaaaails) ils)ils) AAAAA..... CCCCCOOOOOMMMMMPPPPPAAAAANNNNNYYYYY Penalty Punishment Compounding B.B.B.B.B. DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS Penalty Punishment Compounding Nil Nil Nil Nil Nil Nil C.C.C.C.C. OOOOOTTTTTHHHHHEEEEER OR OR OR OR OFFIFFIFFIFFIFFICCCCCEEEEERRRRRS IS IS IS IS IN DN DN DN DN DEEEEEFFFFFAAAAAUUUUULLLLLTTTTT Penalty Punishment Compounding Nil Nil Nil NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL NNNNNIIIIILLLLL Annexure-V to the Directors’ Report RRRRRelelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttty dy dy dy dy disclos isclos isclos isclosuuuuurrrrre ue ue ue ue undendendendender rr rr rr rr reeeeeggggguuuuulllllaaaaatttttioioioioion 34 of l n 34 of l n 34 of l n 34 of lisisisisistttttiiiiinnnnng rg rg rg rg reeeeeggggguuuuulllllaaaaatttttioioioioionnnnnsssss isclos n 34 of l N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A N.A LLLLLoooooaaaaan / An / An / An / An / Adddddvvvvvaaaaancncncncnceseseseses NNNNNaaaaame of P me of P me of P me of Paaaaarrrrrtttttyyyyy me of P PDS Multinational Limited India Pearl Global Fareast Limited s (Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrres)es)es)es)es) s (Eq IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts (Eq s (Eq s (Eq me of Paaaaarrrrrtttttyyyyy me of P NNNNNaaaaame of P me of P me of P Pearl Global Fareast Limited Norp Knit Industries Ltd Pearl Apparel Fashions Limited Pearl Apparel Fashions Limited (Preference Shares) Pearl Global (HK) Limited Pearl Global Kaushal Vikas Limited (Formerly Pixel Industries Ltd.) SBUYS E-Commerce Limited SSSSStttttaaaaatttttuuuuusssss Associates Subsidiary SSSSStttttaaaaatttttuuuuusssss Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (` in Lakh) BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as os os os os onnnnn 31.03.2020 31.03.2020 31.03.2020 31.03.2020 31.03.2020 MMMMMaaaaaxixixixiximmmmmuuuuummmmm he yearrrrr ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yea 300.00 497.57 300.00 497.57 (` in Lakh) BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as os os os os onnnnn 31.03.2020 31.03.2020 31.03.2020 31.03.2020 31.03.2020 MMMMMaaaaaxixixixiximmmmmuuuuummmmm he yearrrrr he yea he yea ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea 2,797.29 2,468.53 1,648.35 300.00 6,152.32 5.00 1.00 2,797.29 2,468.53 1,648.35 300.00 6,152.32 5.00 1.00 48 Pearl Global Industries Limited Annual Report 2019-20 Annexure-VI to the Directors’ Report he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act, 2013 ct, 2013 ct, 2013 he Co he Co n 186 of t rs of loaaaaannnnns, gs, gs, gs, gs, guuuuuaaaaarrrrraaaaannnnnttttteeeeees oes oes oes oes or ir ir ir ir innnnnvvvvvesesesesestttttmememememennnnnttttts us us us us undendendendender Sr Sr Sr Sr Seeeeectctctctctioioioioion 186 of t n 186 of t rs of lo PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of lo rs of lo ct, 2013 n 186 of the Co ct, 2013 he Co n 186 of t rs of lo [Pursuant to Section 134 (3)(g) of the Companies Act, 2013] SlSlSlSlSl..... NNNNNaaaaame of t he Commmmmpppppaaaaannnnnyyyyy he Co he Co me of t me of t me of the Co he Co me of t NNNNNooooo..... 1 2 3 Pearl Global (HK) Limited PDS Multinational Fashions Limited Pearl Global Fareast Limited 4 Norp Knit Industries Limited Pearl Apparel Fashions Limited Pearl Apparel Fashions Limited (Preference Shares) Pearl Global Kaushal Vikas Limited (Formerly Pixel Industries Limited) SBUYS E-Commerce Limited 5 6 7 8 NNNNNotototototeeeee::::: LLLLLoooooaaaaannnnnsssss GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeseseseses IIIIInnnnnvvvvvesesesesestttttmememememennnnntttttsssss (((((````` i i i i in Lan Lan Lan Lan Lakkkkkhhhhh))))) - 24,124.80 6,152.32 300.00 497.57 - - - - - - - 7,967.43 - - - - 5.00 2,797.29 2,468.53 1,648.35 300.00 5.00 1.00 1. Investment are in equity shares, unless otherwise mentioned 2. Guarantees are issued to Banks to secure the facilities extended to these Companies Place: Gurugram Date: October 07, 2020 For and on behalf of the Board for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD (D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H) CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN DIN 00003021 Pearl Global Industries Limited Annual Report 2019-20 49 Annexure-VII to the Directors’ Report [Pursuant to Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] SlSlSlSlSl..... NNNNNooooo..... I II PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Disclosuuuuurrrrreseseseses Disclos Disclos Disclos Disclos The ratio of the remuneration of each Director to the median remuneration Mr. Pulkit Seth (VC&MD) Mrs. Shifalli Seth (WTD) of the employees for the financial year Mr. Vinod Vaish (WTD) The percentage increase in remuneration of each Director, CFO, CS in the Mr. Pulkit Seth (VC&MD) Mrs. Shifalli Seth (WTD) financial year Mr. Vinod Vaish (WTD) Chief Financial Officer Company Secretary 61.62x 25.67x 6.07x 50% 0% 7.90% 0% 6.47% III The percentage increase in the median remuneration of employees in the financial year The median remuneration of the employees in the financial year was increased by 5%. IV The number of permanent employees on the rolls of the Company There were approx 6,840 permanent employees as on 31st March, 2020 V Average percentile increase already made in the salaries of employees other Average percentile increase in the salary of employees other than managerial than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification Average percentile increase in the salary of Managerial personnel in the last thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration; personnel in the last financial year was 5%. financial year was 21.45%. VI Affirmation that the remuneration is as per the remuneration The remuneration paid to Directors/employees is as per remuneration policy. policy of the Company Place: Gurugram Date: October 07, 2020 For and on behalf of the Board for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD (D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H) CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN DIN 00003021 50 Pearl Global Industries Limited Annual Report 2019-20 Annexure-VIII to the Directors’ Report [Pursuant to Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended List of top ten employee in terms of remuneration drawn SlSlSlSlSl..... NNNNNaaaaame ofme ofme ofme ofme of NNNNNooooo..... EEEEEmmmmmppppplololololoyeyeyeyeyeeeeee DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn EdEdEdEdEducucucucucaaaaatttttioioioioionnnnnaaaaalllll qqqqquuuuuaaaaalllllific ificificaaaaatttttioioioioionnnnn ificific AgAgAgAgAgeeeee ExExExExExpppppeeeeerrrrrieieieieiencncncncnceeeee (((((iiiiin yea n yea n yea n years)rs)rs)rs)rs) n yea DDDDDaaaaattttte of e of e of e of e of JJJJJoooooiiiiinnnnniiiiinnnnnggggg RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn PPPPPrrrrreeeeevvvvviouiouiouiouiousssss id (`))))) eeeeemmmmmppppplololololoyyyyymememememennnnnttttt pppppaaaaaid ( id ( id ( id ( PPPPPeeeeerrrrrccccceeeeennnnntttttaaaaagggggeeeee WhetWhetWhetWhetWhetheheheheherrrrr of eof eof eof eof eqqqqquuuuuititititityyyyy eeeeemmmmmppppplololololoyeyeyeyeyeeeeee shshshshshaaaaarrrrre held e held e held is r is r is relelelelelaaaaatttttiviviviviveeeee e held e held is r is r of aof aof aof aof annnnnyyyyy DiDiDiDiDirrrrreeeeectctctctctooooorrrrr ooooor Mr Mr Mr Mr Maaaaannnnnaaaaagggggeeeeerrrrr 1 Mr. Pallab Banerjee Group President B.Sc. (Hons) and Post Graduate in Apparel Merchandising & Marketing from NIFT 2 Mr. Pankaj Bhasin CEO-Sampling & Merchandising B.Com and Apparel Production Management 3 Mr. Amit Mohan 4 Mr. Manish Sareen Group CFO Senior Vice President (Marketing & Operations) B.Com (Hons), CA, CPA, ISA MBA 5 Mr. Sundeep COO-Knits B.A. Chatrath Division (India) 6 Mr. Raghav Garg Chief Financial Officer B.Com (Hons), CA 7 Mr. Praveen Choudhary Financial Controller B.Com, CA 8 Mr. Ashutosh Assistant Vice PGDBA-HR, LLB Sharma President (Human Resource) 9 Mr. Sumit Kumar Executive Assistant- Chairman B.E. (M.E.), PGDMA, CFA-II 10 Mr. Anand Bhatia Vice-President (Production) B.Sc., MBA Note: Nature of employment is non contructual 52 28 01.06.2019 8,311,136 VP-Global Sourcing NIL No (Wovens) - GAP, MD- Global International Sourcing India Pvt. Ltd. 15.07.1995 6,258,091 NIL 02.11.2015 6,136,128 CFO, Vishvaraj Infrastructure, Nagpur 01.11.2017 4,758,504 Founder & CEO- J&M Fashions 01.06.2017 4,566,294 Head-Merchandising, Gupta Exim, Faridabad 21.01.2019 3,443,755 Vice Presidnet - F&A - Trident Ltd. 21.01.2019 2,891,855 GM-Finance - Poly Medicure Ltd. 15.03.2018 2,585,641 Head & GM-Paras Group (Real Estate & Education Business) NIL NIL NIL NIL NIL NIL NIL 25 31 26 32 13 18 19 13 08.02.2017 2,328,955 AGM, Punj Lloyd NIL 28 09.08.2011 2,365,643 Factory Manager, NIL Texport Fashion Ltd 47 54 49 53 37 41 41 38 51 No No No No No No No No No Pearl Global Industries Limited Annual Report 2019-20 51 Annexure-VIII to the Directors’ Report e Dirrrrreeeeectctctctctooooorsrsrsrsrs e Di n of Exeeeeecucucucucutttttivivivivive Di e Di n of Ex RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion of Ex n of Ex e Di n of Ex SlSlSlSlSl..... NNNNNaaaaame ofme ofme ofme ofme of NNNNNooooo..... EEEEEmmmmmppppplololololoyeyeyeyeyeeeeee DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn EdEdEdEdEducucucucucaaaaatttttioioioioionnnnnaaaaalllll qqqqquuuuuaaaaalllllific ificificaaaaatttttioioioioionnnnn ificific AgAgAgAgAgeeeee ExExExExExpppppeeeeerrrrrieieieieiencncncncnceeeee (((((iiiiin yea n yea n yea n years)rs)rs)rs)rs) n yea DDDDDaaaaattttte of e of e of e of e of JJJJJoooooiiiiinnnnniiiiinnnnnggggg RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn PPPPPrrrrreeeeevvvvviouiouiouiouiousssss pppppaaaaaididididid eeeeemmmmmppppplololololoyyyyymememememennnnnttttt 1 Mr. Pulkit Seth Managing Director Bachelor of Business Management 2 Mrs. Shifalli Whole-Time Seth Director Bachelor degree in Business Administration 3 Mr. Vinod Whole-Time B.Sc. Vaish* Director 40 39 62 16 15 30 11/1/2004 15,528,800 NIL 5/1/2005 6,903,800 Pearl Global Ltd. 6/8/2009 1,727,864 Director, Uttranchal Biodiesel Ltd Note: Nature of employment is contructual * Mr. Vinod Vaish has resigned from the Board of the Company with effect from April 30, 2020 PPPPPeeeeerrrrrccccceeeeennnnntttttaaaaagggggeeeee WhetWhetWhetWhetWhetheheheheherrrrr of eof eof eof eof eqqqqquuuuuititititityyyyy eeeeemmmmmppppplololololoyeyeyeyeyeeeeee shshshshshaaaaarrrrre held e held e held is r is r is relelelelelaaaaatttttiviviviviveeeee e held e held is r is r of aof aof aof aof annnnnyyyyy DiDiDiDiDirrrrreeeeectctctctctooooorrrrr ooooor Mr Mr Mr Mr Maaaaannnnnaaaaagggggeeeeerrrrr 32.07 0.93 NIL Yes Yes No Place: Gurugram Date: October 07, 2020 For and on behalf of the Board for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD (D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H) CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN DIN 00003021 52 Pearl Global Industries Limited Annual Report 2019-20 Annexure IX to the Director’s Report Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo required under the Companies (Accounts) Rules, 2014. AAAAA..... CCCCCOOOOONSNSNSNSNSEEEEERRRRRVVVVVAAAAATTTTTIIIIIOOOOON ON ON ON ON OF EF EF EF EF ENNNNNEEEEERRRRRGGGGGYYYYY n of enenenenenergrgrgrgrgyyyyy::::: n of e (((((iiiii))))) SSSSSttttteeeeeps tps tps tps tps taaaaakkkkkeeeeen fon fon fon fon for cr cr cr cr cooooonnnnnseseseseserrrrrvvvvvaaaaatttttioioioioion of e n of e n of e - - Installed Steam boilers in place of electrical boilers Replaced old office electrical items like Air Conditions, fans with energy efficient ones. - Other measures like placing focused lighting systems and reducing lights wherever not needed. - Effective utilization of work station for energy conservation (((((iiiiiiiiii))))) SSSSSttttteeeeeps tps tps tps tps taaaaakkkkkeeeeen bn bn bn bn by ty ty ty ty the Co he Co he Co he Commmmmpppppaaaaannnnny foy foy foy foy for ur ur ur ur utttttilililililiziziziziziiiiinnnnng ag ag ag ag alllllttttteeeeerrrrrnnnnnaaaaattttte sou e sou e sou e sourrrrrccccces of e es of e es of e es of enenenenenergrgrgrgrgyyyyy ::::: he Co e sou es of e The Company being into garment manufacturing does not consume heavy electricity. However, the Company has installed 200 KW capacity of solar energy plant at its factory located at Chennai. (((((iiiiiiiiiiiiiii))))) TTTTThe Che Che Che Che Caaaaapppppitititititaaaaal il il il il innnnnvvvvvesesesesestttttmememememennnnnt ot ot ot ot on en en en en enenenenenergrgrgrgrgy cy cy cy cy cooooonnnnnvvvvveeeeersarsarsarsarsatttttioioioioion en en en en eqqqqquuuuuiiiiipppppmememememennnnnttttt::::: The Company has invested approx ` 1.07 Crore for installation of solar energy plant. B.B.B.B.B. TTTTTECECECECECHHHHHNNNNNOOOOOLLLLLOOOOOGGGGGY AY AY AY AY ABBBBBSSSSSOOOOORRRRRPPPPPTTTTTIIIIIOOOOON :N :N :N :N : (((((iiiii))))) EEEEEffoffoffoffofforrrrrttttts ms ms ms ms made t ade t ade t ade tooooowwwwwaaaaarrrrrds tds tds tds tds teeeeechchchchchnononononololololologgggg y abso y abso y abso y absorptrptrptrptrptioioioioionnnnn::::: ade t y abso Nil (((((iiiiiiiiii))))) BBBBBeeeeenefit nefit nefit s des derrrrriviviviviveeeeed ld ld ld ld likikikikike pe pe pe pe prrrrroooooddddduct i s des de uct i uct i uct immmmmppppprrrrrovovovovoveeeeemememememennnnnt, ct, ct, ct, ct, cososososost rt rt rt rt reeeeeddddductuctuctuctuctioioioioion, pn, pn, pn, pn, prrrrroooooddddduct de uct de uct de uct devvvvveloeloeloeloelopppppmememememennnnnt ot ot ot ot or ir ir ir ir immmmmpppppooooorrrrrt st st st st subsubsubsubsubstttttititititituuuuutttttioioioioionnnnn::::: nefits de nefit uct i uct de Not Applicable (((((iiiiiiiiiiiiiii))))) IIIIIn cn cn cn cn caaaaase of i se of i se of i se of immmmmpppppooooorrrrrttttteeeeed td td td td teeeeechchchchchnononononololololologgggg y (y (y (y (y (iiiiimmmmmpppppooooorrrrrttttteeeeed dd dd dd dd duuuuurrrrriiiiinnnnng tg tg tg tg the lhe lhe lhe lhe laaaaassssst tt tt tt tt thhhhhrrrrreeeeee yea e yea e yea e years rrs rrs rrs rrs reeeeeckckckckckooooonenenenened frd frd frd frd frooooom tm tm tm tm the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of t g of t g of thehehehehe se of i e yea g of t fififififinnnnnaaaaancianciancianciancial yea l yea l yea l year):r):r):r):r): l yea a Technology Imported b Year of Import C Has technology been fully absorbed? d If not fully absorbed, areas where this has not taken place, and the reasons. ch & Deeeeevvvvveloeloeloeloelopppppmememememennnnnttttt::::: ch & D esearrrrrch & D ch & D esea he expppppeeeeendndndndndititititituuuuurrrrre ie ie ie ie incuncuncuncuncurrrrrrrrrreeeeed od od od od on Rn Rn Rn Rn Resea esea he ex (((((iv)iv)iv)iv)iv) TTTTThe ex he ex ch & D esea he ex ExExExExExpppppeeeeendndndndndititititituuuuurrrrre oe oe oe oe on R & D n R & D n R & D n R & D n R & D a) Capital b) Recurring TTTTTotototototaaaaalllll C.C.C.C.C. FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Ee Ee Ee Ee Eaaaaarrrrrnnnnniiiiinnnnngggggs as as as as and Ond Ond Ond Ond Ouuuuutgtgtgtgtgooooo FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Ee Ee Ee Ee Eaaaaarrrrrnnnnniiiiinnnnngggggsssss PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Export of Goods - FOB basis Interest Income IT/SAP Income TTTTTotototototaaaaalllll : Not Applicable : N.A. N.A. N.A. 2019-20 2019-20 2019-20 2019-20 2019-20 NIL 783.95 783.95 783.95 783.95 783.95 783.95 2019-20 2019-20 2019-20 2019-20 2019-20 74,130.24 30.11 98.11 (`/Lakh) 2018-19 2018-19 2018-19 2018-19 2018-19 NIL 596.89 596.89 596.89 596.89 596.89 596.89 (`/Lakh) 2018-19 2018-19 2018-19 2018-19 2018-19 77,985.01 29.68 81.68 74,258.46 74,258.46 74,258.46 74,258.46 74,258.46 78,096.37 78,096.37 78,096.37 78,096.37 78,096.37 Pearl Global Industries Limited Annual Report 2019-20 53 Annexure IX to the Director’s Report FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Oe Oe Oe Oe Ouuuuutgtgtgtgtgooooo PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Imports Foreign Travelling EDI Expenses Others TTTTTotototototaaaaalllll Place: Gurugram Date: October 07, 2020 2019-20 2019-20 2019-20 2019-20 2019-20 12,730.23 68.73 63.07 59.41 (`/Lakh) 2018-19 2018-19 2018-19 2018-19 2018-19 2,889.52 69.47 37.09 85.18 12,921.44 12,921.44 12,921.44 12,921.44 12,921.44 3,081.26 3,081.26 3,081.26 3,081.26 3,081.26 for and on behalf of the Board for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD (D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H) CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN DIN 00003021 54 Pearl Global Industries Limited Annual Report 2019-20 Statement containing salient features of the financial statement of subsidiary companies [ Pursuant to first proviso to Sub-Section (3) of Section 129 of the Companies Act, 2013, read with Rule 5 of the Companies (Accounts) Rules, 2014-AOC-1] (((((````` i i i i in Lan Lan Lan Lan Lakkkkkhhhhh))))) ubsidiaiaiaiaiarrrrryyyyy ubsid ubsid me of S me of S Sl.Sl.Sl.Sl.Sl. NNNNNaaaaame of S me of Subsid ubsid me of S N N N N Nooooo..... e of RRRRReeeeepppppooooorrrrrtttttiiiiinnnnnggggg RRRRReeeeepppppooooorrrrrtttttiiiiinnnnnggggg ExExExExExchchchchchaaaaannnnngggggeeeee e of e of DDDDDaaaaattttte of e of rrrrraaaaattttteeeee isitioioioioionnnnn isit isit AAAAAcccccqqqqquuuuuisit isit CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy PPPPPeeeeerrrrrioioioioioddddd RRRRReseeseeseeseeserrrrrvvvvveseseseses EqEqEqEqEquuuuuititititityyyyy ShShShShShaaaaarrrrreeeee & s& s& s& s& suuuuurprprprprpllllluuuuusssss TTTTTotototototaaaaalllll TTTTTotototototaaaaalllll aaaaassssssetsetsetsetsetsssss LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies IIIIInnnnnvvvvvesesesesestttttmememememennnnntttttsssss TTTTTuuuuurrrrrnovnovnovnovnoveeeeerrrrr CCCCCaaaaapppppitititititaaaaalllll ofit/ PPPPPrrrrrovovovovovisioisioisioisioisionnnnn ofit/ ofit/ PPPPPrrrrrofit/ ofit/ for forfor LLLLLososososossssss for for tttttaaaaaxaxaxaxaxatttttioioioioionnnnn bbbbbefoefoefoefoeforrrrreeeee tttttaaaaaxaxaxaxaxatttttioioioioionnnnn % of% of% of% of% of dddddivivivivivideideideideidendndndndnd shshshshshaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg ofit / PPPPPrrrrroooooppppposeoseoseoseoseddddd ofit / ofit / PPPPPrrrrrofit / ofit / LLLLLososososossssss afafafafafttttteeeeerrrrr tttttaaaaaxaxaxaxaxatttttioioioioionnnnn OOOOOtttttheheheheherrrrr TTTTTotototototaaaaalllll cccccooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee iiiiincncncncncooooome fome fome fome fome forrrrr ttttthe Yhe Yhe Yhe Yhe Yeaeaeaeaearrrrr ses) ses) (Ex(Ex(Ex(Ex(Expppppeeeeennnnnses) ses) ses) I I I I Incncncncncooooomememememe 1 2 3 Pearl Apparel Fashions Limited Pearl Global Kaushal Vikas Limited SBUYS E-Commerce Limited 3/30/2007 31-Mar-20 6/18/2014 31-Mar-20 9/20/2019 31-Mar-20 INR INR INR NA 2763.91 -2760.00 304.20 300.29 0.00 14.96 -18.77 4.96 -23.73 NA NA 5.00 1.00 -4.25 -0.24 1.83 1.00 1.08 0.24 0.00 0.00 0.00 -0.57 0.00 -0.57 0.00 -0.24 0.00 -0.24 4 Norp Knit Industries 3/22/2006 31-Mar-20 USD 75.39 3631.18 10503.53 31553.86 17419.15 1009.73 58812.90 1545.87 301.33 1244.54 Limited Pearl Global Fareast Limited Peal Global (HK) Limited PGIC Investment Limited Pearl Grass Creations Limited 5 6 7 8 9 Vin Pearl Global Vietnam Limited 3/16/2009 31-Mar-20 USD 75.39 3268.16 3932.54 11258.95 4058.25 0.00 22716.24 575.91 0.00 575.91 12/22/2009 31-Mar-20 USD 75.39 6830.33 4511.89 47349.62 36007.39 14976.15 94844.99 599.19 71.27 527.92 16.08.2016 31-Mar-20 USD 75.39 0.0 -271.15 4322.99 4594.14 0.00 0.45 -226.90 0.00 -226.90 11.07.2016 31-Mar-20 USD 75.39 301.56 -1480.81 2580.16 3759.42 0.00 3453.47 -157.44 0.00 -157.44 11.07.2016 31-Mar-20 USD 75.39 9.05 -1506.02 7985.18 9482.15 3109.31 12213.96 18.64 0.00 18.64 10 Pearl Global Vietnam 01.05.2017 31-Mar-20 VND 0.00 2294.65 -1884.91 6477.78 6068.04 0.00 11999.70 25.62 0.00 25.62 Co. Limited 11 Prudent Fashions 02.03.2017 31-Mar-20 BDT 0.87 383.60 -124.04 3185.03 2925.47 0.00 0.00 -88.57 0.07 -88.64 Limited 12 DSSP Global Limited 11/8/2012 31-Mar-20 13 PT Pinnacle Apparels 3/30/2006 31-Mar-20 USD USD 75.39 75.39 1134.71 1133.84 4662.00 12099.32 4368.93 9336.31 6302.61 3833.55 791.58 25496.29 0.00 18612.19 135.19 237.17 71.20 71.20 63.99 165.97 NNNNNotototototeeeee::::: - - - - - - - - - - - - - 100 100 100 99.99 100 100 100 80 100 100 99.95 100 69.91 - - - - - (23.73) (0.57) (0.24) 1,244.54 575.91 42.36 570.28 - - (11.66) - - 69.84 69.84 (226.90) (157.44) 6.98 25.62 (88.64) 133.83 235.80 In addition to above the Company has invested in 3000000 Preference Shares of ` 10/- each aggregating ` 3,00,00,000/- of Pearl Apparel Fashions Limited For and on behalf of Board l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo for P P P P Peaeaeaeaearrrrrl Glo l Glo l Glo (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si (Ka(Kashshshshshmmmmmiiiiir Si r Si (Ka(Ka (Ka r Si Chief Financial Officer (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 Place: Gurugram Date: July 28, 2020 Pearl Global Industries Limited Annual Report 2019-20 55 Corporate Governance 1.1.1.1.1. CCCCCOOOOOMMMMMPPPPPAAAAANNNNNYYYYY ’’’’’S PS PS PS PS PHHHHHIIIIILLLLLOOOOOSSSSSOOOOOPPPPPHHHHHYYYYY Corporate Governance is based on the principles of integrity, fairness, equity, transparency, accountability and commitment to Values, good governance practices stem from culture and mindset of the organization. The Company has an unwavering commitment to uphold sound corporate governance standards and highest business conduct. Being a value driven organization, Pearl Global Industries Limited has always worked towards building trust with stakeholders based on the principles of corporate governance. Pearl Global Industries Limited strives to foster a corporate culture in which high standard of ethical behavior, individual accountability and transparent disclosure are ingrained in all its business dealing and shared by its Board of Directors, Management and employees. Over the years governance process and systems have been strengthened at Pearl Global Industries. In addition to complying with the statutory requirements, effective governance system and practices towards improving transparency, disclosures, internal controls and promotion of ethics at work place. Over the years governance processes and systems have been strengthened at Pearl Global Industries Limited. Your Company is committed to best Corporate Governance and has fully complied with the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). The Company in its endeavor towards the best Corporate Governance and to provide transparency initiated various measures. This report along with the chapters on Management Discussion and Analysis reports company’s compliance with SEBI Listing Regulations. 2.2.2.2.2. BBBBBOOOOOAAAAARRRRRD OD OD OD OD OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS As on 31st March 2020, the Company’s Board of Directors consists of 9 (Nine) members. The Chairman of the Board is non-executive Promoter Director. The Board comprises of three executive Directors of whom one women Director and six non-executive Directors, of whom five are Independent Directors including one women Independent Director. The composition of the Board is in conformity with the requirement of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All non-executive independent Directors are persons of eminence and bring a wide range of expertise and experience to the Board. CoCoCoCoCommmmmpppppositositositositositioioioioion an an an an and Cnd Cnd Cnd Cnd Caaaaattttteeeeegggggooooorrrrry of t n 31.03.2020 and tnd tnd tnd tnd theiheiheiheiheir ar ar ar ar atttttttttteeeeendndndndndaaaaancncncncnce ie ie ie ie in tn tn tn tn the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrd ad ad ad ad and And And And And Annnnnnnnnnuuuuuaaaaalllll n 31.03.2020 a y of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrd ad ad ad ad as os os os os on 31.03.2020 a n 31.03.2020 a y of t y of t y of t n 31.03.2020 a s herrrrreueueueueundendendendenderrrrr::::: s he GGGGGeeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnngggggs as as as as arrrrre ae ae ae ae as he s he s he me of Dirrrrreeeeectctctctctooooorrrrr me of Di me of Di S.S.S.S.S. NNNNNaaaaame of Di me of Di NNNNNooooo..... . of . of NNNNNooooo. of . of . of ouououououtttttside side side side side DiDiDiDiDirrrrreeeeectctctctctooooorrrrr----- MMMMMeeeeembmbmbmbmbeeeeerrrrr CCCCChhhhhaaaaaiiiiirrrrrmmmmmaaaaannnnn BBBBBoooooaaaaarrrrrddddd AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaalllll . of . of NNNNNooooo. of . of . of CoCoCoCoCommmmmmmmmmitititititttttteeeeeeeeee AAAAAtttttttttteeeeendndndndndaaaaancncncncnceeeee CCCCCaaaaattttteeeeegggggooooorrrrryyyyy shshshshshiiiiips*ps*ps*ps*ps* MMMMMeeeeeetetetetetiiiiinnnnngggggsssss MMMMMeeeeeetetetetetiiiiinnnnnggggg 1 Mr. Deepak Seth Promoter, Non-Executive 2 Mr. Pulkit Seth Promoter, Executive 3 Mrs. Shifalli Seth Promoter, Executive 4 Mr. Vinod Vaish Executive 5 Mr. Chittranjan Dua Independent, Non-executive 6 Mr. Rajendra Kumar Aneja Independent Non-executive 7 Mr. Anil Nayar Independent, Non-executive 8 Mr. Abhishek Goyal Independent, Non-executive 9 Mrs. Madhulika Bhupatkar Independent, Non-executive 3 2 2 1 5 - - 2 - 1 2 — 3 4 3 4 2 - — — — 1 1 — 2 1 - 2 2 1 4 2 1 4 4 - Yes Yes No No Yes No Yes Yes Not Applicable *Foreign Companies, Bodies Corporate, Private Companies and Companies under Section 8 of the Companies Act, 2013 are excluded for the above purpose. 56 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance (contd...) y of Dirrrrreeeeectctctctctooooorshrshrshrshrshiiiiippppp::::: y of Di y is Dirrrrreeeeectctctctctooooors ars ars ars ars and cnd cnd cnd cnd caaaaattttteeeeegggggooooorrrrry of Di y of Di y is Di he Commmmmpppppaaaaannnnny is Di y is Di he Co he Co rs of t e Dirrrrreeeeectctctctctooooors of t rs of t e Di me of otheheheheher lr lr lr lr lisisisisisttttteeeeed ed ed ed ed ennnnntttttititititities wies wies wies wies wheheheheherrrrre Di e Di me of ot NNNNNaaaaame of ot me of ot rs of the Co y of Di y is Di he Co rs of t e Di me of ot DDDDDIIIIINNNNN y of Dirrrrreeeeectctctctctooooorshrshrshrshrshiiiiippppp y of Di ich thehehehehe CCCCCaaaaattttteeeeegggggooooorrrrry of Di y of Di ich t ies in wn wn wn wn whhhhhich t ich t ies i me of lisisisisisttttteeeeed ed ed ed ed ennnnntttttititititities i ies i me of l NNNNNaaaaame of l me of l y of Di ich t ies i me of l r is a Dirrrrreeeeectctctctctooooorrrrr r is a Di d Dirrrrreeeeectctctctctooooor is a Di r is a Di d Di cccccoooooncncncncnceeeeerrrrrnenenenened Di d Di r is a Di d Di 00003021 PDS Multinational Fashions Limited me of Dirrrrreeeeectctctctctooooorrrrr me of Di NNNNNaaaaame of Di me of Di me of Di Mr. Deepak Seth Mr. Pulkit Seth Mrs. Shifalli Seth Mr. Vinod Vaish Mr. Chittranjan Dua 00003044 NIL 01388430 NIL 01945795 NIL 00036080 TVS Motor Company Limited Gillette India Limited Promoter, Non-Executive Director NIL NIL NIL Independent Non-Executive Director Independent Non-Executive Director NIL NIL NIL NIL Mr. Rajendra Kumar Aneja 00731956 NIL 01390190 NIL Mr. Anil Nayar Mr. Abhishek Goyal 01928855 NIL Mrs. Madhulika Bhupatkar 08712718 NIL Mr. Deepak Seth, Chairman, Mr. Pulkit Seth, Vice Chairman & Managing Director and Mrs. Shifalli Seth, Whole- Time Director are relatives. Mrs. Shifalli Seth is wife of Mr. Pulkit Seth, Mr. Pulkit Seth is Son of Mr. Deepak Seth. The Board of Directors has through circular resolution dated March 18, 2020, appointed Mrs. Madhulika Bhupatkar as Women Independent Director of the Company in compliance with the proviso of Regulation 17(1)(a) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There is no Nominee or Institutional Directors on the Board of the Company. During the financial year 2019-20, four (4) Board Meetings were held on 28th May 2019, 13th August 2019, 14th November 2019, and 13th February, 2020. Mr. Deepak Seth, Chairman holds 28,62,145 equity shares (13.21%), Mr. Pulkit Seth, Vice Chairman & Managing Director holds 69,47,621 equity shares (32.07%) and Mrs. Shifalli Seth, Whole Time Director holds 2,01,478 equity shares (0.93%) of the Company. No other Director holds any equity share in the Company. Details of familiarisation programmes imparted to Independent Directors are disclosed at Company’s website at http:/ /www.pearlglobal.com/investors/policy d of Dirrrrreeeeectctctctctooooorsrsrsrsrs d of Di e of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrd of Di d of Di e of t ise/Commmmmpppppeteteteteteeeeencncncncnce of t e of t ise/Co ls/Expppppeeeeerrrrrtttttise/Co ise/Co ls/Ex SkSkSkSkSkililililills/Ex ls/Ex d of Di e of t ise/Co ls/Ex The Board comprises qualified members who bring the required skill, competence and expertise that allow them to make effective contribution to the Board. The following is the list of core skills/expertise/competencies identified by the Board of Directors as required in the context of the business of the Company for it to function effectively and those actually available the Board: SkSkSkSkSkililililill al al al al arrrrreaeaeaeaea DDDDDescescescescescrrrrriiiiiptptptptptioioioioionnnnn Product design, Manufacturing, Sales and Marketing Finance • Experience in design and manufacturing of products and developing strategies to increase sales and market share. • Qualification and experience in accounting and finance 6 and ability to understand key financial statements, strategic financial planning and budgets. NNNNNuuuuumbmbmbmbmbeeeeer of Di r of Dirrrrreeeeectctctctctooooorsrsrsrsrs r of Di r of Di r of Di hhhhhaaaaavvvvviiiiinnnnng pg pg pg pg paaaaarrrrrttttticuicuicuicuiculllllaaaaar skr skr skr skr skililililillslslslsls 3 Pearl Global Industries Limited Annual Report 2019-20 57 Corporate Governance (contd...) SkSkSkSkSkililililill al al al al arrrrreaeaeaeaea DDDDDescescescescescrrrrriiiiiptptptptptioioioioionnnnn NNNNNuuuuumbmbmbmbmbeeeeer of Di r of Dirrrrreeeeectctctctctooooorsrsrsrsrs r of Di r of Di r of Di hhhhhaaaaavvvvviiiiinnnnng pg pg pg pg paaaaarrrrrttttticuicuicuicuiculllllaaaaar skr skr skr skr skililililillslslslsls Global Business Leadership and Strategic Planning Technology and Innovation Legal and Governance • Experience in driving business in markets around the world. • Understanding of diverse business environments, economic conditions, cultures and regulatory frameworks. • Ability to understand organization, processes, strategic planning and risk management. • Experience in developing talent, succession planning and driving change and long term growth. • Knowledge of technological trends in apparel industry. • Ability to protect shareholders’ interest and observe appropriate governance practices. • Monitor risk and compliance management system including legal framework. Human Resource and • Ability to understand Labour Laws and other related Administration applicable Laws including administration functions of the Company. The Board members possess the skills identified; their area of core expertise is given below: 3 5 3 5 4 NNNNNaaaaame of Di me of Di me of Di me of Dirrrrreeeeectctctctctooooorrrrr me of Di Mr. Deepak Seth Mr. Pulkit Seth Mrs. Shifalli Seth Mr. Vinod Vaish Mr. Anil Nayar AAAAArrrrrea of Ex ea of Ex ea of Ex ea of Expppppeeeeerrrrrtttttiseiseiseiseise ea of Ex Product design, Manufacturing, Sales and Marketing Global Business Leadership and Strategic Planning Finance Legal and Governance Technology and Innovation Product design, Manufacturing, Sales and Marketing Global Business Leadership and Strategic Planning Finance Technology and Innovation Product design, Manufacturing, Sales and Marketing Global Business Technology and Innovation Human Resource and Administration Legal and Governance Finance Finance Leadership and Strategic Planning Legal and Governance Human Resource and Administration 58 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance (contd...) NNNNNaaaaame of Di me of Dirrrrreeeeectctctctctooooorrrrr me of Di me of Di me of Di Mr. Chittranjan Dua AAAAArrrrrea of Ex ea of Expppppeeeeerrrrrtttttiseiseiseiseise ea of Ex ea of Ex ea of Ex Finance Leadership and Strategic Planning Legal and Governance Finance Legal and Governance Human Resource and Administration Mrs. Madhulika Bhupatkar Human Resource and Administration Mr. Abhishek Goyal Leadership and Strategic Planning Mr. Vinod Vaish has tendered his resignation from the Board of the Company with effect from April 30, 2020, due to personal reasons. In the opinion of the Board, all Independent Directors fulfill the conditions specified in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and are independent of the management. During the year, no Independent Director has resigned before the expiry of his tenure. IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioion sn sn sn sn suuuuupppppppppplllllieieieieied td td td td to to to to to the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd The Board has complete access to all information with the company. Inter alia, the following information are provided to the Board and the agenda papers for the meetings are circulated in advance of each meeting or are tabled. • Annual Operating plans and budgets, Capital budgets, updates; • Quarterly results for the company and its operating divisions or business segments; • Minutes of meetings of Audit Committee and other committees of the board; • Information on recruitment and remuneration of senior officers just below the board level including appointment or removal of Chief Financial Officer and Company Secretary; • Materially important show cause, demand, prosecution and penalty notices; • Fatal or serious accidents or dangerous occurrences; • Any materially significant effluent or pollution problems; • Any materially relevant default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company; • Any issue, which involves possible public or product liability claims of a substantial nature; • Details of any joint venture or collaboration agreement; • Transactions that involve substantial payment towards goodwill, brand equity or intellectual property; • Significant labour problems and their proposed solutions; • Any significant development in the human resources and industrial relations fronts; • Sale of material nature, of investments, subsidiaries, assets, which is not in the normal course of business; • Quarterly details of foreign exchange exposure and the steps taken by management to limit the risks of adverse exchange rate movement, and • Non-compliance of any regulatory, statutory nature or listing requirements and shareholder services such as non- payment of dividend and/or delay in share transfer. Pearl Global Industries Limited Annual Report 2019-20 59 Corporate Governance (contd...) 3.3.3.3.3. AAAAAUUUUUDDDDDIIIIIT CT CT CT CT COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE The Audit Committee has been constituted as per Section 177 of the Companies Act, 2013 and the guidelines set out in Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The terms of reference includes:- • Overseeing financial reporting processes. • Reviewing periodic financial results, financial statements and adequacy of internal control systems. • Discussion and review of periodic audit reports and • Discussions with external auditors about the scope of audit including the observations of the auditors. • Recommending the appointment, remuneration and removal of statutory auditors. • Discussing with internal auditors any significant findings and follow up there on. • • • • • • Reviewing the adequacy of internal control systems with management, external and internal auditors and reviewing the Company’s risk management policies / systems. Reviewing the financial statements and quarterly financial results. Reviewing Management discussion and analysis of financial condition and result of operations. Reviewing statement of significant related party transactions. Review and monitor the auditor’s independence and performance, and effectiveness of audit process. Scrutiny of inter-corporate loans and investments. All the members of Audit Committee are Non-Executive Directors except Mr. Vinod Vaish and the Chairman of the Committee is Non-Executive Independent Director. All the members of the committee possess financial/accounting expertise. Mr. Sandeep Sabharwal, Company Secretary acts as Secretary of the Audit Committee. During the year, the Audit Committee, met four times and discharged its responsibilities in accordance with Section 177 of the Companies Act, 2013 and SEBI Listing Regulations. The meetings of the Audit Committee were held on 28th May 2019, 13th August 2019, 14th November 2019 and 13th February 2020 during the financial year 2019-20. The maximum gap between any two meetings was less than one hundred twenty days. During the year 2019-20, the members of the Audit Committee and their attendance are as under: it Commmmmmmmmmitititititttttteeeeeeeeee it Co AAAAAudududududit Co it Co it Co Composition Mr. Anil Nayar Mr. Vinod Vaish Mr. Abhishek Goyal Mr. Rajendra K Aneja – Chairman – Member Director – Member Director – Member Director No. of Meetings attended 4 4 4 1 4.4.4.4.4. NNNNNOOOOOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND RD RD RD RD REEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON CN CN CN CN COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE Terms of Reference of the Nomination and Remuneration Committee include: • To guide the Board in relation to appointment and removal of Directors, Key Managerial Personnel and Senior Management. • To evaluate the performance of the members of the Board and provide necessary report to the Board for further evaluation of the Board. 60 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance (contd...) • To recommend to the Board on Remuneration payable to the Directors, Key Managerial Personnel and Senior Management. • To provide to Key Managerial Personnel and Senior Management reward linked directly to their effort, performance, dedication and achievement relating to the Company’s operations. • To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage. • To devise a policy on Board diversity • To develop a succession plan for the Board and to regularly review the plan; All the members of the Nomination and Remuneration Committee are Non Executive Directors. Three meetings of the Nomination and Remuneration Committee were held on 28th May, 2019, and 13th February, 2020, during the financial year 2019-20. Details of meeting of the members of Nomination and Remuneration Committee and their attendance are as under: n Con Commmmmmmmmmitititititttttteeeeeeeeee n Con Co NNNNNooooommmmmiiiiinnnnnaaaaatttttioioioioion an an an an and Rnd Rnd Rnd Rnd Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion Co Composition Mr. Abhishek Goyal Mr. Deepak Seth Mr. Anil Nayar Mr. Rajendra Kumar Aneja - Chairman - Member Director - Member Director - Member Director No. of Meetings attended 2 1 2 1 The Nomination and Remuneration Committee has laid down the criteria for evaluation of performance of Independent Directors and the Board. • Attendance and contribution at Board and Committee meetings • Knowledge on specific matters like finance, legal, marketing, internal controls, risk management, and business operations. • Pro-active and positive approach with regard to Board and Senior Management particularly the arrangement for management of risk and the steps needed to meet challenges from the competition. • Openness to ideas, perspectives and opinions and ability to challenge old practices and throwing up new ideas for discussion. • Capacity to effectively examine financial and other information on operations of the Company and the ability to make positive contribution thereon. 5.5.5.5.5. RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON ON ON ON ON OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS Details of remuneration paid to all the Directors for the year 2019-20 are as under: (Amount in `) me of th eh eh eh eh e NNNNNaaaaame of t me of t me of t me of t r(s) r(s) D iD iD iD iD irrrrreeeeectctctctctooooor(s) r(s) r(s) Designation MMMMMrrrrr..... DDDDDeeeeeeeeeepppppaaaaakkkkk SSSSSetetetetethhhhh Chairman Salary Benefits HRA SPECIAL Allowance — — — — MMMMMrrrrr..... PPPPPuuuuulllllkkkkkititititit SSSSSetetetetethhhhh Managing Director 1,55,00,000 — — — MMMMMrrrrr..... AAAAAnnnnnililililil NNNNNaaaaayyyyyaaaaarrrrr Director MMMMMrrrrr..... C RC RC RC RC R DDDDDuuuuuaaaaa Director MMMMMrrrrr..... RRRRRajajajajajeeeeendrndrndrndrndraaaaa K AK AK AK AK Anejanejanejanejaneja Director MMMMMrrrrr..... MMMMMrrrrr..... ishek MMMMMadadadadadhhhhhuuuuulllllikaikaikaikaika AAAAAbbbbbhhhhhishek ishek ishek ishek GGGGGoooooyyyyyaaaaalllll BBBBBhhhhhuuuuupppppaaaaatttttkakakakakarrrrr Director — — — — — — — — — — — — — — — — — — — — MMMMMrrrrr..... S hS hS hS hS hifififififaaaaalllllllllliiiii SSSSSetetetetethhhhh Whole Time Director 68,75,000 — — — MMMMMrrrrr..... VVVVV iiiiin on on on on oddddd VVVVVaaaaaishishishishish Whole Time Director 8,06,680 — 4,03,281 4,45,205 Pearl Global Industries Limited Annual Report 2019-20 61 Corporate Governance (contd...) NNNNNaaaaame of t me of t me of t me of th eh eh eh eh e me of t D iD iD iD iD irrrrreeeeectctctctctooooor(s) r(s) r(s) r(s) r(s) Medical Bonus Commission Pension Provident Fund Perquisites Break up of fixed components and Performance linked incentives with performance criteria Performance Incentive Service Contract Notice Period, Severance fees Stock Options details (if any): Whether issued at discount. Period over which it is accrued and is exercisable Sitting Fees TTTTTotototototaaaaalllll MMMMMrrrrr..... DDDDDeeeeeeeeeepppppaaaaakkkkk SSSSSetetetetethhhhh — — — — — — — — — Nil Nil MMMMMrrrrr..... PPPPPuuuuulllllkkkkkititititit SSSSSetetetetethhhhh — — — — 19,800 28,800 — — 3 years Nil Nil MMMMMrrrrr..... AAAAAnnnnnililililil NNNNNaaaaayyyyyaaaaarrrrr — — — — — — — — — Nil Nil MMMMMrrrrr..... C RC RC RC RC R DDDDDuuuuuaaaaa — — — — — — — — — Nil Nil MMMMMrrrrr..... RRRRRajajajajajeeeeendrndrndrndrndraaaaa K AK AK AK AK Anejanejanejanejaneja — — MMMMMrrrrr..... MMMMMrrrrr..... AAAAAbbbbbhhhhhishek ishek ishek ishek MMMMMadadadadadhhhhhuuuuulllllikaikaikaikaika ishek GGGGGoooooyyyyyaaaaalllll BBBBBhhhhhuuuuupppppaaaaatttttkakakakakarrrrr — — — — — — — — — — — Nil Nil — — — — — — — Nil Nil — — — — — — — Nil Nil MMMMMrrrrr..... S hS hS hS hS hifififififaaaaalllllllllliiiii SSSSSetetetetethhhhh — — — — 19,800 28,800 — — 3 years Nil Nil MMMMMrrrrr..... VVVVV iiiiin on on on on oddddd VVVVVaaaaaishishishishish — 29,156 — — 21,600 43,542 — — — Nil Nil 20,000 20,000 20,000 20,000 20,000 20,000 — 1,55,48,600 1,55,48,600 1,55,48,600 1,55,48,600 1,55,48,600 50,000 50,000 50,000 50,000 50,000 50,000 30,000 30,000 30,000 30,000 30,000 30,000 10,000 10,000 10,000 10,000 10,000 10,000 50,000 50,000 50,000 50,000 50,000 50,000 — ————— — — 17,49,464 17,49,464 69,23,600 69,23,600 17,49,464 69,23,600 17,49,464 17,49,464 69,23,600 69,23,600 A sitting fee of ` 10,000/- is payable to Independent Directors for attending meeting of Independent Directors. Besides above, the Company does not pay any other commission or remuneration to its Directors and there is no performance linked incentives except the fixed component as stated above. The Company has no policy of stock option, pension or severance fee for its Directors. Notice period of executive directors are as per Company policy, i.e. 3 months. The Company does not have any separate service contract with executive directors apart from Resolution of Board/shareholders. 6.6.6.6.6. SSSSSTTTTTAAAAAKKKKKEEEEEHHHHHOOOOOLLLLLDDDDDEEEEER RR RR RR RR REEEEELLLLLAAAAATTTTTIIIIIOOOOONSNSNSNSNSHHHHHIIIIIP CP CP CP CP COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE As on 31st March, 2020, The Stakeholder Relationship Committee comprises of: Mr. Anil Nayar Mr. Pulkit Seth Mr. Vinod Vaish - Chairman - Member - Member Mr. Rajendra K Aneja - Member The Chairman of the Committee is Non- Executive Independent Director. Mr. Sandeep Sabharwal, Company Secretary is Compliance Officer of the Company. The Secretary of the Company acts as Secretary of the Committee. The meetings of the Stakeholder Relationship Committee were held on 24th April, 2019, 6th November, 2019, 10th January, 2020 and 6th March, 2020, during the financial year 2019-20. 62 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance (contd...) r 2019-20 r 2019-20 he yea rs Commmmmppppplllllaaaaaiiiiinnnnnttttts ds ds ds ds duuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea rs Co s of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders Co rs Co s of Sh SSSSStttttaaaaatttttuuuuus of Sh s of Sh r 2019-20 he year 2019-20 r 2019-20 he yea rs Co s of Sh Complaints at the beginning of the year. Nil Complaints received during the year. 3 Complaints settled during the year. 3 Complaints pending at the ending of the year Nil 7.7.7.7.7. CCCCCOOOOORRRRRPPPPPOOOOORRRRRAAAAATTTTTE SE SE SE SE SOOOOOCCCCCIIIIIAAAAAL RL RL RL RL REEEEEPPPPPOOOOOSSSSSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY CY CY CY CY COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE As on 31st March, 2020, The Corporate Social Responsibility Committee comprises of: Mr. Vinod Vaish - Chairman Mr. Pulkit Seth Mr. Anil Nayar - Member - Member The Chairman of the Committee is Executive Director. The Secretary of the Company acts as Secretary of the Committee. One meeting held on 28th May, 2019, during the financial year 2019-20. 8.8.8.8.8. FIFIFIFIFINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE As on 31st March, 2020, The Finance Committee comprises of: Mr. Pulkit Seth - Chairman Mrs. Shifalli Seth Mr. Vinod Vaish - Member - Member The Chairman of the Committee is Executive Director. The Secretary of the Company acts as Secretary of the Committee. The meetings of Finance Committee were held on 30.04.2019, 20.05.2019, 08.07.2019, 03.08.2019, 16.09.2019, 24.10.2019, 14.11.2019, 06.12.2019, 18.12.2019, 17.01.2020, 11.02.2020 and 26.02.2020, during the financial year 2019-20. 9.9.9.9.9. GGGGGEEEEENNNNNEEEEERRRRRAAAAAL BL BL BL BL BOOOOODDDDDY MY MY MY MY MEEEEEEEEEETTTTTIIIIINNNNNGGGGGSSSSS Location and time where last 3 Annual General Meetings were held: YYYYYeaeaeaeaearrrrr 2016-17 AAAAAGGGGGMMMMM LLLLLooooocccccaaaaatttttioioioioionnnnn 28th 2017-18 29th 2018-19 30th Sri Sathya Sai International Centre, Pragati Vihar (Near Pragati Vihar Hostel) Lodhi Road, New Delhi-110 003 Air Force Auditorium, Near R&R HospitalSubroto Park, New Delhi-110 010 Sri Sathya Sai International Centre, Pragati Vihar (Near Pragati Vihar Hostel) Lodhi Road, New Delhi-110 003 DDDDDaaaaattttteeeee 28.09.2017 TTTTTiiiiimememememe 03.30 P.M. 24.09.2018 10.30 A.M. 24.09.2019 10.30 A.M. il of Spppppeeeeeciaciaciaciacial Rl Rl Rl Rl Resoesoesoesoesollllluuuuutttttioioioioionnnnns Ps Ps Ps Ps Paaaaassssssesesesesed Dd Dd Dd Dd Duuuuurrrrriiiiinnnnng lg lg lg lg laaaaassssst tt tt tt tt thhhhhrrrrreeeeee Ae Ae Ae Ae Annnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnngggggsssss::::: il of S DDDDDetetetetetaaaaail of S il of S il of S SlSlSlSlSl..... PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of S rs of Spppppeeeeeciaciaciaciacial Rl Rl Rl Rl Resoesoesoesoesollllluuuuutttttioioioioionnnnn rs of S rs of S rs of S NNNNNooooo..... DDDDDaaaaattttteeeee FFFFFiiiiinnnnnaaaaancianciancianciancialllll YYYYYeaeaeaeaearrrrr 1 Re-appointment of Mr. Pulkit Seth as Managing Director of the 24th September, 2019 2018-19 Company. Pearl Global Industries Limited Annual Report 2019-20 63 Corporate Governance (contd...) SlSlSlSlSl..... PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of S rs of Spppppeeeeeciaciaciaciacial Rl Rl Rl Rl Resoesoesoesoesollllluuuuutttttioioioioionnnnn rs of S rs of S rs of S NNNNNooooo..... Re-appointment of Mr. Anil Nayar as an Independent Director of the Company. Re-appointment of Mr. Chittranjan Dua as an Independent Director of the Company. Re-appointment of Mr. Rajendra Kumar Aneja as an Independent Director of the Company. DDDDDaaaaattttteeeee FFFFFiiiiinnnnnaaaaancianciancianciancialllll YYYYYeaeaeaeaearrrrr 24th September, 2019 2018-19 24th September, 2019 2018-19 24th September, 2019 2018-19 2 Re-appointment of Mrs. Shifalli Seth as Whole-Time Director of 24th September, 2018 2017-18 the Company. To approve remuneration of Mr. Pulkit Seth as Managing Director of the Company. To Increase the Investment Limit by Non Resident Indian (NRI) or Overseas Citizen of Indian (OCI) in the Company. Alteration of Memorandum of Association of the Company for commencement of New Business. 24th September, 2018 2017-18 24th September, 2018 2017-18 24th September, 2018 2017-18 3 NIL 28th September, 2017 2016-17 During the year, no Special Resolution was passed through Postal Ballot. No special resolution is proposed to be conducted through postal ballot. 10.10.10.10.10. MMMMMEEEEEAAAAANS ONS ONS ONS ONS OF CF CF CF CF COOOOOMMMMMMMMMMUUUUUNNNNNIIIIICCCCCAAAAATTTTTIIIIIOOOOONNNNN (i) The quarterly results of the Company are published in leading and widely circulated English/Hindi National/ Regional Newspapers as per the requirements of the Listing Regulations with the Stock Exchanges. The results are also submits to the BSE Limited and National Stock Exchange of India Limited, through their online portal. (ii) The results normally published in Business Standard (English) and Naya India (Hindi). (iii) The Company’s Financial Results, Shareholding Pattern and official news releases, if any, are displayed on the Company’s website wwwwwwwwwwwwwww.....pppppeaeaeaeaearrrrrlllllggggglololololobbbbbaaaaalllll.....cccccooooommmmm, besides the website of BSE Limited at wwwwwwwwwwwwwww.bsei .bseindndndndndiaiaiaiaia.....cccccooooommmmm and .bsei .bsei .bsei National Stock Exchange of India Limited at wwwwwwwwwwwwwww.n.n.n.n.nseiseiseiseiseindndndndndiaiaiaiaia.....cccccooooommmmm..... (iv) The Company updates the media, analysts, institutional investors, etc., through a formal presentation on its financials as well as other business developments. 11.11.11.11.11. GGGGGEEEEENNNNNEEEEERRRRRAAAAAL SL SL SL SL SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEER IR IR IR IR INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN (((((iiiii))))) AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg 31st Annual General Meeting is scheduled as under:- Day Thursday Date 26-11-2020 Time 11:30 a.m. Venue through Video Conferencing (VC) or Other Audio Visual Means (OAVM) l yearrrrr (((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial yea l yea l yea l yea : The financial year covers the period 1st April to 31st March. FFFFFiiiiinnnnnaaaaancianciancianciancial Cl Cl Cl Cl Caaaaalelelelelendndndndndaaaaarrrrr, 2020-21 , 2020-21 , 2020-21 , 2020-21 , 2020-21 First Quarter Results Second Quarter & Half Yearly Results Third Quarter Results Fourth Quarter & Annual Results : Second week of September, 2020 : Second week of November, 2020 : Second week of February, 2021 : Last week of May, 2021 64 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance (contd...) (((((iiiiiiiiiiiiiii))))) DivDivDivDivDivideideideideidend pnd pnd pnd pnd paaaaayyyyymememememennnnnt dt dt dt dt daaaaattttteeeee Not Applicable e of Booooooooook Ck Ck Ck Ck Closloslosloslosuuuuurrrrreeeee e of B (((((iv)iv)iv)iv)iv) DDDDDaaaaattttte of B e of B e of B : 20th November, 2020 to 26th November, 2020 (both days inclusive) ck Codedededede ck Co ck Exchchchchchaaaaannnnnggggges aes aes aes aes and tnd tnd tnd tnd theiheiheiheiheir Sr Sr Sr Sr Stttttooooock Co ck Co ck Ex (v)(v)(v)(v)(v) LLLLLisisisisistttttiiiiinnnnng og og og og on Sn Sn Sn Sn Stttttooooock Ex ck Ex ck Co ck Ex Name of the Stock Exchanges, wherein shares of the Company are currently listed and their Script Code: SSSSStttttooooock Ex ck Exchchchchchaaaaannnnngggggeeeee ck Ex ck Ex ck Ex BBBBBSSSSSE LE LE LE LE LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD 1ST FLOOR, NEW TRADING RING ROTUNDA BUILDING, P. J. TOWERS DALAL STREET, FORT, MUMBAI – 400 001Mumbai NNNNNAAAAATTTTTIIIIIOOOOONNNNNAAAAAL SL SL SL SL STTTTTOOOOOCCCCCK EK EK EK EK EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGE OE OE OE OE OF IF IF IF IF INNNNNDDDDDIIIIIA LA LA LA LA LTTTTTDDDDD..... “EXCHANGE PLAZA”, PLOT NO. C- 1, G- BLOCK, BANDRA - KURLA COMPLEX, BANDRA (E), MUMBAI - 400 051 SSSSScccccrrrrriiiiipt Co pt Codedededede pt Co pt Co pt Co 532808 532808 532808 532808 532808 PPPPPGGGGGIIIIILLLLL The Annual Listing Fee for the financial year 2019-2020 has been paid to the Stock Exchanges within stipulated time. The ISIN No. of the equity shares of your Company is IIIIINNNNNE940H01014 E940H01014 E940H01014 E940H01014. E940H01014 (v(v(v(v(viiiii))))) MMMMMaaaaarrrrrkkkkket Pet Pet Pet Pet Prrrrricicicicice De De De De Daaaaatttttaaaaa: H: H: H: H: Higigigigigh, Lh, Lh, Lh, Lh, Looooow dw dw dw dw duuuuurrrrriiiiinnnnng each mo g each mo g each mo g each monnnnnttttth ih ih ih ih in fin fin fin fin finnnnnaaaaancianciancianciancial yea l yea l yea r 2019-20: r 2019-20: l year 2019-20: r 2019-20: g each mo l yea r 2019-20: MOMOMOMOMONNNNNTTTTTH(S)H(S)H(S)H(S)H(S) BBBBBOOOOOMMMMMBBBBBAAAAAY SY SY SY SY STTTTTOOOOOCCCCCK EK EK EK EK EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGEEEEE NNNNNAAAAATTTTTIIIIIOOOOONNNNNAAAAAL SL SL SL SL STTTTTOOOOOCCCCCK EK EK EK EK EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGEEEEE Company Code: 532808 Company Code: PGIL April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 HHHHHIIIIIGGGGGHHHHH 181.00 198.00 175.00 174.55 164.70 172.50 178.00 202.00 165.00 172.00 153.45 132.10 LLLLLOOOOOWWWWW 158.55 139.60 155.15 145.25 120.00 130.00 146.05 151.20 149.60 147.90 128.05 82.50 HHHHHIIIIIGGGGGHHHHH 184.90 197.90 176.00 173.95 155.00 172.40 179.00 202.80 169.90 174.00 155.00 134.90 LLLLLOOOOOWWWWW 160.05 141.70 155.65 145.00 115.00 131.00 144.05 150.00 145.60 147.70 128.10 82.05 Pearl Global Industries Limited Annual Report 2019-20 65 Corporate Governance (contd...) nd NSE NE NE NE NE Nifififififtttttyyyyy ::::: nd NS nd NS sex a (v(v(v(v(viiiiiiiiii)Sh)Sh)Sh)Sh)Shaaaaarrrrre pe pe pe pe prrrrricicicicice pe pe pe pe peeeeerforforforforforrrrrmmmmmaaaaancncncncnce ie ie ie ie in cn cn cn cn cooooommmmmpppppaaaaarrrrrisoisoisoisoison tn tn tn tn to Bo Bo Bo Bo BSSSSSE SE SE SE SE Seeeeennnnnsex a sex a sex and NS nd NS sex a MOMOMOMOMONNNNNTTTTTH(S)H(S)H(S)H(S)H(S) nd of laaaaassssst tt tt tt tt trrrrradadadadadiiiiinnnnnggggg (((((As oAs oAs oAs oAs on en en en en end of l nd of l nd of l nd of l he monnnnnttttthhhhh))))) he mo he mo y of t y of t dddddaaaaay of t y of the mo he mo y of t SSSSSHHHHHAAAAARRRRRE PE PE PE PE PRRRRRIIIIICCCCCEEEEES CS CS CS CS COOOOOMMMMMPPPPPAAAAARRRRRIIIIISSSSSIIIIIOOOOONNNNN BBBBBSSSSSEEEEE NSNSNSNSNSEEEEE April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 PPPPPGGGGGIIIIILLLLL 163.00 172.80 168.55 150.00 134.00 170.00 155.25 164.40 157.20 152.45 132.05 110.10 SSSSSeeeeennnnnsexsexsexsexsex 39,031.55 39,714.20 39,394.64 37,481.12 37,332.79 38,667.33 40,129.05 40,793.81 41,253.74 40,723.49 38,297.29 29,468.49 PPPPPGGGGGIIIIILLLLL 163.10 172.15 168.75 150.50 135.00 168.55 153.90 166.95 156.05 151.30 132.00 110.15 NNNNNifififififtttttyyyyy 11,748.15 11,922.80 11,788.85 11,118.00 11,023.25 11,474.45 11,877.45 12,056.05 12,168.45 11,962.10 11,201.75 8,597.75 (v(v(v(v(viiiiiiiiiiiiiii))))) RRRRReeeeegggggisisisisistttttrrrrraaaaar ar ar ar ar and Sh nd Sh nd Sh nd Shaaaaarrrrre Te Te Te Te Trrrrraaaaannnnnsssssfefefefefer Ag r Ag r Ag r Ageeeeennnnnttttt nd Sh r Ag Link Intime India Pvt. Limited Nobel Heights, 1st Floor, Plot No.NH-2, C-1 Block LSC Near Savitri Market, Janakpuri, New Delhi - 110 058. Tel. No. : 011 - 41410592 - 94, Fax No. : 011 – 41410591, E-mail: delhi@linkintime.co.in (((((ix)ix)ix)ix)ix) ShShShShShaaaaarrrrre Te Te Te Te Trrrrraaaaannnnnsssssfefefefefer Sr Sr Sr Sr Sysysysysysttttteeeeemmmmm The Company’s shares being in compulsory demat form are transferable through the depository system. The Shares in physical form are processed by the Registrar and Transfer Agents and approved by the Stakeholder Relationship Committee. Share transfer process reviewed by the Board. (x)(x)(x)(x)(x) DisDisDisDisDistttttrrrrribuibuibuibuibutttttioioioioion Sn Sn Sn Sn Schechechechecheddddduuuuulelelelele he Commmmmpppppaaaaannnnny ay ay ay ay as os os os os on 31n 31n 31n 31n 31sssssttttt M M M M Maaaaarrrrrch 2020 ch 2020 ch 2020 he Co he Co g of t n of Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of t g of t n of Eq n of Eq (a)(a)(a)(a)(a) DisDisDisDisDistttttrrrrribuibuibuibuibutttttioioioioion of Eq ch 2020 g of the Co ch 2020 he Co g of t n of Eq r of Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrres * held es * held es * held r of Eq NNNNNuuuuumbmbmbmbmbeeeeer of Eq r of Eq es * held es * held r of Eq Sh Sh Sh Sh Shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs 1 - 500 501 - 1000 1001 - 2000 2001 - 3000 3001 - 4000 4001 - 5000 5001 – 10000 10001 and above TTTTTotototototaaaaalllll NNNNNuuuuumbmbmbmbmbeeeeersrsrsrsrs 15,799 229 105 39 21 18 34 67 16,312 16,312 16,312 16,312 16,312 % t% t% t% t% to to to to to totototototaaaaalllll 96.86 1.40 0.64 0.24 0.13 0.11 0.21 0.41 100.00 100.00 100.00 100.00 100.00 Eq Eq Eq Eq Equuuuuititititity shy shy shy shy shaaaaarrrrres held es held es held es held es held NNNNNuuuuumbmbmbmbmbeeeeersrsrsrsrs 10,60,361 1,70,270 1,61,606 97,935 73,038 84,425 2,52,877 1,97,63,425 2,16,63,937 2,16,63,937 2,16,63,937 2,16,63,937 2,16,63,937 % t% t% t% t% to to to to to totototototaaaaalllll 4.89 0.79 0.75 0.45 0.33 0.39 1.17 91.23 100.00 100.00 100.00 100.00 100.00 66 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance (contd...) ies of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ars ars ars ars as os os os os on 31n 31n 31n 31n 31sssssttttt M M M M Maaaaarrrrrch 2020 ch 2020 ch 2020 ies of Sh (((((bbbbb))))) CCCCCaaaaattttteeeeegggggooooorrrrries of Sh ies of Sh ch 2020 ch 2020 ies of Sh PPPPPRRRRROOOOOMOMOMOMOMOTTTTTEEEEERRRRRSSSSS Indian NRI TTTTTOOOOOTTTTTAAAAAL (L (L (L (L (AAAAA))))) Mutual Funds/Foreign Portfolio Investors Financial Institutions/Banks NRI’s / Foreign Companies Bodies Corporate Clearing Members Individual Hindu Undivided Family Trusts TTTTTOOOOOTTTTTAAAAAL (B) L (B) L (B) L (B) L (B) TTTTTOOOOOTTTTTAAAAAL [(L [(L [(L [(L [(AAAAA) + (B)] ) + (B)] ) + (B)] ) + (B)] ) + (B)] * Equity Share of the face value of ` 10/- each. (xi(xi(xi(xi(xi))))) DDDDDeeeeemmmmmaaaaattttteeeeerrrrriaiaiaiaialllllisaisaisaisaisatttttioioioioion of Sh n of Sh n of Sh n of Shaaaaarrrrres aes aes aes aes and lnd lnd lnd lnd liqiqiqiqiquuuuuidididididititititityyyyy n of Sh NNNNNooooo. of . of . of . of . of FFFFFooooolllllioioioioio’’’’’sssss % t% t% t% t% to to to to to totototototaaaaalllll NNNNNooooo. of . of . of . of . of FFFFFooooollllliosiosiosiosios ShShShShShaaaaarrrrres Hes Hes Hes Hes Held* eld* eld* eld* eld* % t% t% t% t% to to to to to totototototaaaaalllll ShShShShShaaaaarrrrreseseseses 4 1 55555 2 7 187 124 17 14,703 608 2 15,650 15,650 15,650 15,650 15,650 15,655 15,655 15,655 15,655 15,655 0.03 0.00 0.030.030.030.030.03 0.01 0.04 1.20 0.79 0.11 93.92 3.89 0.01 99.97 99.97 99.97 99.97 99.97 100.00 100.00 100.00 100.00 100.00 1,15,62,764 28,62,145 1,44,24,909 1,44,24,909 1,44,24,909 1,44,24,909 1,44,24,909 13,84,147 4,91,651 2,49,971 5,13,731 1,869 41,26,895 4,70,504 260 72,39,028 72,39,028 72,39,028 72,39,028 72,39,028 2,16,63,937 2,16,63,937 2,16,63,937 2,16,63,937 2,16,63,937 53.37 13.21 66.58 66.58 66.58 66.58 66.58 6.39 2.27 1.15 2.37 0.00 19.06 2.17 0.00 33.42 33.42 33.42 33.42 33.42 100.00 100.00 100.00 100.00 100.00 The shares of the Company are in compulsory demat segment and are available for trading in the depository systems of both NSDL and CDSL. As on 31st March 2020, 2,15,23,357 equity shares of the Company forming 99.35% of the Share Capital of the Company stand dematerialized. (xii (xii (xii))))) OOOOOuuuuutttttssssstttttaaaaandndndndndiiiiinnnnng Gg Gg Gg Gg GDDDDDRRRRRs/As/As/As/As/ADDDDDRRRRRs/Ws/Ws/Ws/Ws/Waaaaarrrrrrrrrraaaaannnnnttttts os os os os or ar ar ar ar annnnny Co y Coy Co y Co y Connnnnvvvvveeeeerrrrrtttttibibibibible i le i le i le innnnnssssstttttrrrrruuuuumememememennnnnttttts, cs, cs, cs, cs, cooooonnnnnvvvvveeeeersiorsiorsiorsiorsion dn dn dn dn daaaaattttte ae ae ae ae and lnd lnd lnd lnd likikikikikely i ely i ely i ely immmmmpppppactactactactact (xii (xii le i ely i ooooon en en en en eqqqqquuuuuititititityyyyy::::: The Company has not issued any GDRs/ADRs/Warrants etc. till date. g activivivivivitititititiesiesiesiesies g act nd hedddddgggggiiiiinnnnng act g act nd he nd he isk a isk or for for for for forrrrreigeigeigeigeign exn exn exn exn exchchchchchaaaaannnnnggggge re re re re risk a isk a isk o (xiii))))) CoCoCoCoCommmmmmomomomomodddddititititity py py py py prrrrricicicicice re re re re risk o isk o (xiii (xiii isk and he g act nd he isk a isk o (xiii (xiii The Company is into the business of exporting garments and may face foreign exchange fluctuation risk. Till March 31, 2019, the Company used derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instruments were initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss. (xiv) PPPPPlllllaaaaannnnnt lot lot lot lot locccccaaaaatttttioioioioionnnnnsssss::::: (xiv) (xiv) (xiv) (xiv) The Company have following plants at various locations in India, Bangladesh, Indonesia and Vietnam, as follows: i) ii) iii) iv) v) 446, Udyog Vihar, Phase-V, Gurgaon - 122 016 (Haryana) Plot No.73, Udyog Vihar, Phase-I, Gurgaon-122016 Plot No. 274, Udyog Vihar, Phase-II, Gurgaon-122016 16-17, Udyog Vihar, Phase VI, Khandsa, Gurgaon - 122 004 (Haryana) 751, Pace City II, Sector 37, Khandsa, Gurgaon - 122 004 (Haryana) Pearl Global Industries Limited Annual Report 2019-20 67 Corporate Governance (contd...) Plot at Khasra No 15//19 & 22, Village Begumpur Khatola, Gurugram, Haryana – 122001 vi) vii) NH-8, Narsinghpur Village, District, Gurgaon (Haryana) viii) No.64, Janakiraman Nagar, Puthagaram, Cuddapa Road, Kilattur, Chennai-600009 ix) NH-45 Chettipunniam Village near Chengalpattu, Kanchipuram District, Chennai-603204 x) 2/31/, Thirukahukundram Road, Melavalam Village, Madhuranthagam, Taluk, Kancheepuram District-603303 Plot No. 19A, NTTF Road, Peenya Industrial Area, Bengaluru-560058 xi) xii) Norp Knit Industries Ltd, North Khailkur, P.O. National University, Gazipur-1704 Bangladesh. xiii) Norp Knit Industries Ltd- 93, Islampur, Kodda, Nandun, Gazipur-1700, Bangladesh xiv) Prudent Fashions Ltd. Kaichabari Road, Bypail, Ashulia, Savar, Bangladesh xv) PT Pinnacle Apparels, JL Coaster No. 8, Blok A-15-15, a TEPZ, Kawasan Berikat Lamicitra Tanjung Emas Export Processing Zone, Semarang-50174, Indonesia xvi) PT Pinnacle Apparels, JL Coaster No. 8, Blok B-15, Kawasan Berikat Lamicitra Tanjung Emas Export Processing Zone, Semarang-50174, Indonesia xvii) PT Pinnacle Apparels, JL.Soekarno-Hatta No.55 Km 30.5, Blok KL Dusan Kutan, Rt 04 Rw 02 Kel. Randugunting, Kec. Bergas, Kabupaten Semarang, Jawa Tengah-50552, Indonesia xviii) Pearl Global Vietnam Company Limited, Dinh Tri Commune, Bae Giang City, Bae Giang Province, Vietnam (xv) (xv) (xv) RRRRReeeeegggggisisisisisttttteeeeerrrrreeeeed Offic d Offic d Offic e of t e of t he Co he Co he Commmmmpppppaaaaannnnnyyyyy ::::: d Office of t e of the Co (xv) (xv) d Offic e of t he Co A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi - 110 028 CoCoCoCoCorprprprprpooooorrrrraaaaattttte Offic e Offic e Offic e & Ae & Addrddrddrddrddresesesesess fos fos fos fos for Co e & Ae & A r Co r Co r Corrrrrrrrrresesesesespppppooooondendendendendencncncncnceeeee::::: e Office & A e Offic r Co Pearl Tower, Plot No.51, Sector-32 Gurugram - 122 001, Haryana (India) IIIIIn cn cn cn cn caaaaase of a se of a se of a se of annnnny Co y Co y Co y Commmmmppppplllllaaaaaiiiiinnnnnt, It, It, It, It, Innnnnvvvvvesesesesestttttooooors crs crs crs crs caaaaan cn cn cn cn cooooonnnnntttttact Co act Co act Co act Commmmmpppppllllliaiaiaiaiancncncncnce Offic e Offic e Offic e Officeeeeerrrrr::::: se of a y Co act Co e Offic Mr. Sandeep Sabharwal Company Secretary Pearl Global Industries Limited Pearl Tower, Plot No.51, Sector-32 Gurugram - 122 001, Haryana (India) Tel. No. Fax No. : 91 - 124 - 4651714 : 91 - 124 - 4651173 (xv(xv(xv(xv(xviiiii))))) CCCCCrrrrreeeeedddddit Rit Rit Rit Rit Raaaaatttttiiiiinnnnngggggsssss The Company has obtained credit ratings from ICRA Limited. Credit ratings of the Company as at the end of the financial year 2019-20 are given below: g Ageeeeencncncncncyyyyy CCCCCrrrrreeeeedddddit Rit Rit Rit Rit Raaaaatttttiiiiinnnnnggggg g Ag RRRRRaaaaatttttiiiiinnnnng Ag g Ag g Ag ICRA Limited Long term rating : [ICRA] BBB (Stable)Short term rating : [ICRA] A3+ 12.12.12.12.12. OOOOOTTTTTHHHHHEEEEER DR DR DR DR DIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEESSSSS a) b) There had been no materially significant related party transaction that might have potential conflict with the interests of the Company at large. Transactions with related parties are disclosed in Note 47 of Notes to Financial Statement in the Annual Report. There has been no non-compliance, penalties/strictures imposed on the company by Stock Exchange(s) or SEBI or any other Statutory Authority, on any matter related to capital markets, during the last three years. 68 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance (contd...) c) d) e) f ) g) h) i) j) k) The Company has a Whistle Blower Policy and Vigil Mechanism. No personnel of the Company have been denied access to the Audit Committee. The Company has complied with all the mandatory requirements including Regulations 17 to 27 and 46 (2) (b) to (i) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As regard the non- mandatory requirements, the extent of compliance has been stated in this report against each of them. Policy for determining ‘material’ subsidiaries is disclosed at Company’s website at http://www.pearlglobal.com/ investors/policy Policy on dealing with related party transactions is disclosed at Company’s website at http://www.pearlglobal.com/ investors/policy Details of commodity price risks and commodity hedging activities are given at Note No. - 41 of Audited Standalone Financial Statements. During the financial year 2019-20, the Company has not raised funds through preferential allotment or qualified institutional placement. A Certificate from a Company Secretary in practice that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as Directors of the Company by the Board/Ministry of Corporate Affairs or any such statutory authority is annexed with this report. The Board had accepted all recommendations of Committees of the Board which is mandatorily required, in the financial year 2019-20. The details of total fees for all services paid by the Company and its subsidiaries, on consolidated basis, to the statutory auditors and all entities in the network firm/network entity of which statutory auditors is a part, are as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Audit Fee Other Services Reimbursement of Expenses TTTTTotototototaaaaalllll FFFFFooooor tr tr tr tr the fi he fi he fi he finnnnnaaaaancianciancianciancial yea l yea l yea l yearrrrr he fi l yea eeeeendendendendended Md Md Md Md Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 15.89 10.00 3.03 28.92 28.92 28.92 28.92 28.92 (((((`````/La/La/La/La/Lakkkkkhhhhh))))) FFFFFooooor tr tr tr tr the fi he fi he fi he finnnnnaaaaancianciancianciancial yea l yea l yea l yearrrrr he fi l yea eeeeendendendendended Md Md Md Md Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 12.62 6.05 2.65 21.32 21.32 21.32 21.32 21.32 l) There was one case filed and resolved during the financial year 2019-20, pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. 13.13.13.13.13. The Company has fully complied with all the requirements of the Corporate Governance including the applicable requirements specified in Regulation 17 to 27 and clause (b) to (i) of sub-regulation (20) of Regulation 46. There has been no instance of non-compliance of any requirement of the Corporate Governance Report. I of the She She She She SEEEEEBBBBBI LI LI LI LI Lisisisisistttttiiiiinnnnng Rg Rg Rg Rg Reeeeeggggguuuuulllllaaaaatttttioioioioionnnnnsssss I of t I of t le I t E of Schechechechecheddddduuuuule I le I t E of S cified id id id id in Pn Pn Pn Pn Paaaaarrrrrt E of S t E of S cifie 14.14.14.14.14. NNNNNooooonnnnn-----MMMMMaaaaandndndndndaaaaatttttooooorrrrry Ry Ry Ry Ry Reeeeeqqqqquuuuuiiiiirrrrreeeeemememememennnnnttttts as as as as as ss ss ss ss spppppeeeeecifie cifie le II of t I of t le I t E of S cifie Discretionary requirements are as follows:- A. TTTTThe Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd Presently, the Company is maintaining office of the Non-Executive Chairman. B. rs Righhhhhtttttsssss rs Rig ShShShShShaaaaarrrrrehoehoehoehoeholdeldeldeldelders Rig rs Rig rs Rig The Company’s Financial Results, Shareholding Pattern and official news releases are displayed on the Company’s website www.pearlglobal.com. n(s) in an an an an audududududit rit rit rit rit reeeeepppppooooorrrrrttttt – there is no modified opinion in the audit report. However, the Statutory n(s) i C. MMMMMooooodddddifieifieifieifieified od od od od opppppiiiiinnnnnioioioioion(s) i n(s) i n(s) i Audior has given qualified opinion in consolidated financial statements. Details of the same are mentioned in the Directors’ Report. Pearl Global Industries Limited Annual Report 2019-20 69 Corporate Governance (contd...) D. e officeeeeerrrrr e offic ief exeeeeecucucucucutttttivivivivive offic e offic ief ex ief ex nd ch s of chaaaaaiiiiirprprprprpeeeeersorsorsorsorson an an an an and ch nd ch s of ch SSSSSeeeeepppppaaaaarrrrraaaaattttte Pe Pe Pe Pe Posososososttttts of ch s of ch nd chief ex e offic ief ex nd ch s of ch Presently, the Company has separate post of Non-executive Chairman and Managing Director. E. g of innnnnttttteeeeerrrrrnnnnnaaaaal al al al al audududududitititititooooorrrrr-The internal auditor reports to Audit Committee as and when required. g of i RRRRReeeeepppppooooorrrrrtttttiiiiinnnnng of i g of i g of i de of Condndndndnductuctuctuctuct de of Co de of Co he Co CoCoCoCoCommmmmpppppllllliaiaiaiaiancncncncnce we we we we wititititith th th th th the Co he Co he Code of Co de of Co he Co The Company has adopted a “Code of Conduct for the Directors and Senior Management”. The Code is available on the official website of the Company www.pearlglobal.com. The declaration from the Managing Director regarding compliance with the code by all the Directors and Senior Management forms part of the Report. CoCoCoCoCommmmmpppppllllliaiaiaiaiancncncncnce ce ce ce ce ceeeeerrrrrtttttificificificificificaaaaattttte oe oe oe oe on Co n Corprprprprpooooorrrrraaaaattttte Ge Ge Ge Ge Govovovovoveeeeerrrrrnnnnnaaaaancncncncnceeeee n Con Co n Co A certificate from Auditors of the Company regarding compliance of conditions of Corporate Governance is annexed with this Annual Report. CCCCCEO/CEO/CEO/CEO/CEO/CFFFFFO CO CO CO CO CEEEEERRRRRTTTTTIIIIIFIFIFIFIFICCCCCAAAAATTTTTIIIIIOOOOONNNNN The Managing Director and Chief financial Officer have certified to the Board, inter alia, the accuracy of financial statements and adequacy of Internal Controls for the financial reporting purpose as required under Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the year ended 31st March 2020. Disclos Disclos Disclosuuuuurrrrre we we we we wititititith rh rh rh rh resesesesespppppeeeeect tct tct tct tct to deo deo deo deo demmmmmaaaaat st st st st suuuuussssspppppeeeeennnnnse ac se ac se ac se accccccououououounnnnnt / u t / ut / unclnclnclnclnclaaaaaiiiiimememememed sd sd sd sd suuuuussssspppppeeeeennnnnse ac t / ut / u se ac se ac se accccccououououounnnnnttttt::::: Disclos Disclos se ac se ac Total shares outstanding at the beginning of Financial Year are 420 & total number of shareholders is 20. In regards, shares remains unclaimed and lying in the IPO escrow A/c of the company for the financial year 2019-20, information is as follows: - - Number of shareholders approached the company for transfer of shares: Nil - No. of shareholders to whom shares transferred from escrow a/c: Nil - - Aggregate number of shareholders & shares at the close of the year are 20 and 420 respectively. Voting rights of these shares shall remain frozen till claim made against their shares. EEEEElelelelelectctctctctrrrrrooooonnnnnic Cic Cic Cic Cic Clealealealealearrrrriiiiinnnnng Sg Sg Sg Sg Seeeeerrrrrvvvvvicicicicice (ECe (ECe (ECe (ECe (ECS)S)S)S)S) SEBI had vide its Circular No. DCC/FITTCIR-3/2001 dated October 15, 2001 advised that all companies should mandatorily use ECS facility wherever available. In the absence of ECS facility, companies may use warrants for distributing the dividends and vide its Circular No. D&CC/FITTCIR-04/2001 dated November 13, 2001 had advised companies to mandatorily print the Bank Account details furnished by the Depositories, on the dividend warrants. This ensures that the dividend warrants, even if lost or stolen, cannot be used for any purpose other than for depositing the money in the accounts specified on the dividend warrants and ensures safety for the investors. However, members who wish to receive dividend in an account other than the one specified while opening the Depository account, may notify their DPs about any change in the Bank Account details. DDDDDeeeeepppppositositositositositooooorrrrry Sy Sy Sy Sy Seeeeerrrrrvvvvviciciciciceseseseses For guidance on depository services, shareholders may write to the Company or to the respective Depositories: NNNNNaaaaatttttioioioioionnnnnaaaaal Sl Sl Sl Sl Seeeeecucucucucurrrrrititititities Dies Dies Dies Dies Deeeeepppppositositositositositooooorrrrry Ly Ly Ly Ly Ltttttddddd..... Trade World, 4th Floor, Kamala Mills Compound Senapati Bapat Marg, Lower Parel, Mumbai-400013 Telephone : 022-24994200 Facsimile : 022-24972993 E-Mail : info@nsdl.co.in Website : www.nsdl.co.in CeCeCeCeCennnnntttttrrrrraaaaal Dl Dl Dl Dl Deeeeepppppositositositositositooooorrrrry Sy Sy Sy Sy Seeeeerrrrrvvvvvicicicicices (I ia) Lia) Ltttttddddd..... ia) Lia) L es (Indndndndndia) L es (I es (I es (I Phiroze Jeejeebhoy Towers 28th Floor, Dalal Street, Mumbai-400023 Telephone : 022-22723333/3224 Facsimile : 022-22723199 E-Mail : investors@cdslindia.com Website : www.cdslindia.com 70 Pearl Global Industries Limited Annual Report 2019-20 Management Discussion and Analysis IIIIINNNNNDDDDDUUUUUSSSSSTTTTTRRRRRY OVY OVY OVY OVY OVEEEEERRRRRVVVVVIIIIIEEEEEWWWWW CCCCCOOOOOMMMMMPPPPPAAAAANNNNNY OVY OVY OVY OVY OVEEEEERRRRRVVVVVIIIIIEEEEEWWWWW A new kind of Coronavirus discovered late last year in Central China has now spread with ruthless speed to every continents on earth except Antartica. It has killed lakhs of peoples, distrupted daily life ways that would have seemed unthinkable at the start of the new year and now poses a dire threat to the health of the world economy. The Indian economy has been hit hard by COVID-19.Due to the Countrywide lockdown various transport facilities including trains and flights are suspended which is expected to hurt domestic operations in India. Indian Textiles and Apparels ( T&A) industry accounts for approximately 4% of the global T&A market. The T&A industry is one of the largest and most important sector for the Indian economy in terms of output, foreign exchange earnings and employment. The industry contribute approximately 7% to industrial output in value terms,2% to the GDP and 15% to the country’s export earnings. With the virus now also affecting and disrupting global supply chains and economy for almost 3 to 6 months now, the situation is having a severe implication on the Indian economy as well. The areas that would face the crises created by COVID-19 pandemic are: i) ii) Labour force and employment. Import & Exports of raw material and readymade garments. iii) Cash flow constraints. iv) Supply chain disruption. v) Consumer sentiment. Last few months have been catastrophic for apparel exports industry of India. One after the other the Industry was struggling with one or other challenge. While global competition is one aspect the challenges within the country at the moment is being regarded as the biggest deterrent to the slow situation of the industry. The Country’s Readymade Garments export to the world during the financial year 2019-20 was to the tune of USD 15,488.70 Million, which has declined by 4.03% compared to the USD 16,138.29 Million in previous financial year. In rupee terms Readymade Garments export during the financial year 2019-20 was ` 1,09,694.78 Crore, which has declined by 2.67% compared to the ` 1,12,701.30 Crore in previous financial year. Pearl Global Industries Limited (PGIL) is one of India’s largest listed garment exporters, manufacturing from multiple sourcing regions within India and countries within South Asia. A preferred long-term vendor to most leading global brands, we are amongst the leading player in our Industry. Our mainstay business is to create value from competitively manufacturing and exporting fashion garments to leading global brands.. Our product rang includes knits, woven and bottoms (basic and complex designs) across men, women and kids wear segments. We have a well diversified and de-risked manufacturing base across India, Indonesia, Bangladesh and Vietnam. We have a total capacity to manufacture around 75 Million garments per year (including own and outsourced facilities). Our revenue structure is primarily export based, with a major contribution coming from exports to the United States. We provide total supply chain solutions to customers-value retailers and high end fashion brand, retails in the United States and Europe, including GAP, Banana Republic, Kohl’s, Macy, Joe Fresh, Walmart, M&S, Target Australia, Zara, Ralph Lauren, Next, Tom Tailor, Old Navy, Muji among others. Our business model enables us to offer superior quality products across various countries, catering to all kinds of consumers. Our esteemed global clientele includes premium retailers in USA and Europe, including GAP, Banana Republic, KOHL’S, Macy, Ralph, Lauren, Tom Tailor and NEXT among others. We strive to be the most preferred vendor to the top global apparel brands and be ranked amongst the top garment manufacturers in the world, in terms of quality, service standards and ultimately-customers satisfaction, keeping in line with our broader vision. 1.1.1.1.1. OOOOOuuuuur mr mr mr mr maaaaannnnnuuuuufffffactactactactactuuuuurrrrriiiiinnnnng fg fg fg fg facilacilacilacilacilitititititiesiesiesiesies CouCouCouCouCounnnnntttttrrrrryyyyy India Bangladesh Bangladesh Indonesia Vietnam TTTTTotototototaaaaalllll NNNNNaaaaame of t he Commmmmpppppaaaaannnnnyyyyy he Co he Co me of t me of t me of the Co he Co me of t Pearl Global Norp knit Prudent Fashions PT Pinnacle Pearl Global Vietnam FFFFFactactactactactooooorrrrriesiesiesiesies 11 2 1 3 1 1818181818 rs of Stttttrrrrreeeeennnnngggggttttthhhhhsssss rs of S 2.2.2.2.2. OOOOOuuuuur Pr Pr Pr Pr Pililililillllllaaaaars of S rs of S rs of S a)a)a)a)a) A MA MA MA MA Muuuuulllllttttti Li Li Li Li Looooocccccaaaaatttttioioioioion Mn Mn Mn Mn Maaaaannnnnuuuuufffffactactactactactuuuuurrrrriiiiinnnnng cg cg cg cg caaaaapppppabababababilililililititititityyyyy Global apparels sourcing market is witnessing a shift from China to other low-cost Asian countries, Pearl Global Industries Limited Annual Report 2019-20 71 Management Discussion and Analysis (contd...) primarily Bangladesh, India and Indonesia. Our Company already has a strong manufacturing presence in leading sourcing nations such as India, Bangladesh, Indonesia and Vietnam. Each of these countries exhibits certain core advantages. bbbbb))))) DDDDDesigesigesigesigesign an an an an as ks ks ks ks keeeeey sy sy sy sy stttttrrrrreeeeennnnngggggttttthhhhh Our Company has 4 (four) design office in USA, UK, Spain and HongKong and dedicated in house design team of 75+ designers. The design teams continuously observe the trend in all markets across the world and visit almost all the globally renowned fashion and textile fairs to refresh their inspiration for new design ideas. As a result they are well equipped to serve the global brands from concept boards to ready new samples. New design ideas also emerge from our various marketing teams, who are close to and in continuous conversations with buyers located in Hongkong, London, USA and Germany. There is an increased focus being placed on creating brand- specific product designs to generate and accelerate business opportunities for global brands and retailers. Our Company has product co-creation and visibility of global fashion industry and latest trends. Apart from these readiness using 3D optitex & Clo platform- Gap Inc,Ann Taylor & others ccccc))))) g Commmmmpppppllllliaiaiaiaiancncncncnce ace ace ace ace acrrrrrosososososs as as as as allllll Fl Fl Fl Fl Factactactactactooooorrrrriesiesiesiesies::::: g Co g Co SSSSStttttrrrrrooooonnnnng Co g Co Compliances in all our facilities are directly linked to the corporate office, which drives all strategy of social compliance, new initiatives and sustainability directly from the top. The corporate compliance acts as a communication hub and control tower for all our customers, providing them with a single point of contact. Strong compliances are established and maintained in all our facilities in line with international standards and several channels are available in each facility to address any concerns. es efficiencncncncncyyyyy::::: es efficie s drivivivivives efficie es efficie s dr ddddd))))) SSSSStttttrrrrrooooonnnnng fog fog fog fog focucucucucus os os os os on on on on on opppppeeeeerrrrraaaaatttttioioioioionnnnns dr s dr es efficie s dr Strong Analytics to drive effective fact based decision making. i) ii) Shift from tactical to strategic approach e.g. Strategic relationship with key clients. iii) Cultural change : Driving a lead mindset; First iv) Time Right. Infrastructure: Reducing Man-Machine Ratio by investment in in-line machinery upgradation; capacity expansion to drive economies of scale. v) Waste Reduction: Across all departments. e)e)e)e)e) SSSSSuuuuussssstttttaaaaaiiiiinnnnnabababababilililililititititity Fy Fy Fy Fy Fooooocucucucucusssss::::: i) Ultra Filtration Plant; To facilitate re-use of discharged water from laundry in toilets, gardening, fire pumps etc; ii) Ozone Machine for green laundry. iii) Enabling low water/chemical consumption by using spray system. iv) Laser Machine: Eco friendly approach compact v) machine jeanologia. Sustainable Fabric: Sourcing BCI cotton, FSC/ Canopy certified Rayon/Tencel/Ecovera, Recycled poly. vi) ETP &STP: All facilities equipped with effluent Treatment Plants (ETP) and Sewage Treatment Plants(STPs) to treat waste water before releasing it into the environment. vii) Solar Powered: 769 solar plates installed in Chennai facility, covering an area of 8120sq. mtrs./220KW. viii) LEED Platinum Certified Facility in Chennai. We drive our social responsibility initiatives with a focus on environmental sustainability, gender equality, health and capacity building, in line with our Chairman’s vision of a better world and the United Nation’s Sustainable Development Goals. -19 PAAAAANNNNNDDDDDEEEEEMMMMMIIIIIC OC OC OC OC ONNNNN -19 P -19 P MMMMMAAAAATTTTTEEEEERRRRRIIIIIAAAAAL IL IL IL IL IMMMMMPPPPPAAAAACCCCCT OT OT OT OT OF CF CF CF CF COVOVOVOVOVIIIIIDDDDD-19 P -19 P CCCCCOOOOOMMMMMPPPPPAAAAANNNNNYYYYY The Company’s manufacturing facilities remained shut from March 23, 2020 due to lockdown and partially re-opened w.e.f. May 04, 2020, which has impacted its operations during April and May 2020. The Company has restarted operations of factories considering order book and available workforce, since May 04, 2020, adhering to the safety norms prescribed by government of India. April-June 2020 being lockdown months, the revenues and profitability of the Company are likely to be adversely impacted. As the business situation is very dynamic, the Company is closely monitoring it. Though we do hope the business situation should normalise during 3rd and 4th quarter. The Company’s capital and banking facilities remain intact. There is no liquidity concern as we have sufficient unutilised Banking limits available. Further Banks have offered additional limits. 72 Pearl Global Industries Limited Annual Report 2019-20 Management Discussion and Analysis (contd...) CCCCCOOOOOMMMMMPPPPPAAAAANNNNNY PY PY PY PY PEEEEERRRRRFFFFFOOOOORRRRRMMMMMAAAAANNNNNCCCCCE AE AE AE AE ANNNNND MD MD MD MD MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT OOOOOUUUUUTTTTTLLLLLOOOOOOOOOOKKKKK The company has achieved a gross income of ` 858.72 Crore compared to ` 866.56 Crore in last financial year and Net Profit ` 5.01 Crore as compared to Net Profit ` 21.50 Crore in the previous year on the standalone basis and consolidated income of ` 1734.18 Crore compared to ` 1,791.42 in the last financial year and net profit ` 21.72 Crore as compared to net profit ` 67.10 crore in the previous financial year. Going forward, as the expanded capacity in Vietnam become fully operational, the share of overseas manufacturing will increase leading to improvement in overall margins. In the last year as the expanded capacities in Bangalore and Chennai fully operational, the share of in house manufacturing already increased leading to improvement in overall margins. GGGGGOVOVOVOVOVEEEEERRRRRNNNNNMMMMMEEEEENNNNNT IT IT IT IT INNNNNIIIIITTTTTIIIIIAAAAATTTTTIIIIIVVVVVEEEEE The Apparel Export Promotion Council (AEPC) had appealed to Union Finance Minister to instruct banks to restructure stressed loans of Apparel manufacturers so that the units can continue operations. In a Memorandum to the Finance Minister, AEPC said that banks are announcing stressed loans as non-performing assets (NPA) and do not want to restructure the loans. Several units will be able to continue operations if the loans are restructured with additional working capital. Apparel Export is time sensitive sector that needs timely sanction of loans. The government has entered into 16 MoU’s with various textile companies to set up manufacturing facilities at Kakatiya Mega Textile Park in Warangal. Industries minister KT Rama Rao said the process of land allotment to interested companies and investors is being done. The government is establishing textile parks, handlooms parks and apparel parks to promote the textile industry with the concept of “farm to fashion” in the state. The Government plans to extend the two year moratorium for debt repayments by textile units as units are already struggling caused by the goods and services tax (GST) refund delay. We are strong enough and do not plan to restructure our loan. The sources said the finance ministry is set to approve the textiles ministry’s recommendation on the moratorium. The two years of moratorium on debts repayments to banks would help improve liquidity for textile units. Following are various incentive Schemes announced & implemented by the Government : d of Expppppooooorrrrrttttts (Ls (Ls (Ls (Ls (LEEEEED)D)D)D)D) d of Ex d of Ex PPPPPeeeeerrrrrioioioioiod of Ex d of Ex UUUUUptptptptpto o o o o 06.03.2019 07.03.2019 to 31.12.2019 01.01.2020 to 31.03.2021 From 01.04.2020 onwards me of Schechechechechemesmesmesmesmes me of S me of S NNNNNaaaaame of S me of S MEIS + RoSL RRRRReeeeemmmmmaaaaarrrrrkkkkksssss RoSTL + Adhoc 1% Replacing (MEIS + RoSL) RoSCTL RoDTEP - Announced but Yet to implement LED – Let Export Date (Shipment Date) MEIS – Merchandise Exports from India Scheme (4%) ROSL – Rebate of State Levies (1.6%) RoDTEP — Remission of Duties and Taxes on Export Products Remission of duties or taxes on Export products (RoDTEP), a new scheme announced by Finance Minister is supposed to replace all previous schemes for exports from 1st April, 2020, but yet to be implemented. In effect, RoDTEP will more than adequately incentive exporters than existing scheme put together. MMMMMooooorrrrre se se se se spppppeeeeecific cific cific cificaaaaallllllylylylyly, t, t, t, t, the mea he mea he mea he measssssuuuuurrrrres aes aes aes aes arrrrreeeee;;;;; cific he mea L) norrrrrmmmmms fos fos fos fos for exr exr exr exr expppppooooorrrrrttttt L) no RRRRReeeeevvvvviseiseiseiseised Pd Pd Pd Pd Prrrrrioioioioiorrrrrititititity sey sey sey sey sectctctctctooooor Lr Lr Lr Lr Leeeeendndndndndiiiiinnnnng (Pg (Pg (Pg (Pg (PSSSSSL) no L) no L) no cccccrrrrreeeeedddddititititit i) Priority Sector Lending (PSL) norms for export credit have been examined and enabling guidelines are under consideration of RBI. ii) This will release an additional INR 36,000 Crore to INR 68,000 Crore as export credit. LLLLLeeeeevvvvveeeeerrrrraaaaaggggge te te te te teeeeechchchchchnononononololololologgggg y ty ty ty ty to ro ro ro ro reeeeeddddducucucucuce te te te te tiiiiime tme tme tme tme to exo exo exo exo expppppooooorrrrrt ot ot ot ot or tr tr tr tr tuuuuurrrrrnnnnnaaaaarrrrrouououououndndndndnd tttttiiiiimememememe i) Technology will be further leveraged by timely completion of ongoing initiatives to further reduce time to export- through seamless process digitization of all export clearances(port/airport/customs etc) and elimination of offline/manual services. ii) An action plan to reduce time to export/turnaround time in airports and ports benchmarked to international standards will be implemented by Dec 2019. iii) Actual turnaround times will be published in real-time for Pearl Global Industries Limited Annual Report 2019-20 73 Management Discussion and Analysis (contd...) each port and airport to push them to improve performance iv) An inter-ministerial group will be made accountable for this. SSSSSpppppeeeeeciaciaciaciacial Fl Fl Fl Fl FTTTTTA uA uA uA uA utttttilililililizaizaizaizaizatttttioioioioion mn mn mn mn misisisisissiosiosiosiosionnnnn i) FTA utilization mission, headed by a senior officer in Department of commerce will be set up ii) To work exclusive with FIEO and export houses to utilize concessional tariffs in each FTA iii) Enhance awareness of preferential duty benefits among MSME, disseminate and facilitate compliance requirements (Rules of origin/certificate of origin) under FTAs for importers and exporters iv) Set goals for FTA utilization and put in place an effective FTA monitoring system. OOOOOPPPPPPPPPPOOOOORRRRRTTTTTUUUUUNNNNNIIIIITTTTTIIIIIEEEEES & TS & TS & TS & TS & THHHHHRRRRREEEEEAAAAATTTTT Besides Civid-19, rising cost of labour in China and marginal price difference in fabrics prices in India and China are helping India. Since costs are rising in China, the media to long term business will move to other countries which can better or match china’ cost and delivery capabilities. Since buyers are looking at alternate markets for sourcing, India has greater chance, being economically and socially stable country. Besides, large garment industry in India is getting more organized for higher demands. Across the entire industry, shops are closed, brands and retailers actually right now have an oversupply situation with whatever orders they have placed. They fear that they may not be able to sell it, so they actually cancelling orders or delaying shipments of orders. Asia is key for garments manufacturing and many jobs in the region will be at risk, potentially causing social problems in countries like Bangladesh, Combodia and China that are dependent on the export economy. A lot of factories in Asia they are seeing orders dry up in few weeks. Bangladesh for example has seen USD 2.6 billion worth of orders in its garment sector withdrawn, with fresh cancellations coming up. It‘s been very hard dealing with all the emergencies because we have been facing cancellations every day on almost a minute-to-minute basis. Worry is, what is going on to happen to so many people are engaged in the garment sector and we are not being able to take care of them properly. We want the workers to be paid, we want to be safe and for that we need the brands to react and respond at this point in time. RRRRRIIIIISSSSSKKKKKS MS MS MS MS MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT & CT & CT & CT & CT & COOOOONNNNNCCCCCEEEEERRRRRNSNSNSNSNS The overseas buyers are reducing not only their orders but also their prices due to serious liquidity problems being faced by them. Garment manufacturing is totally a labour intensive and even after greater automation it will remain so. The obsolete and antiquated labour legislation has hindered the growth of the extremely labour intensive garment manufacturing. The restrictive industrial and labour laws restrain management’s capability to respond professionally, effectively and speedily to the fast changing dynamic international textile scenario and request for labour reforms with flexible labour laws to increase productivity. There is an urgent need for flexible labour norms specific to garment manufacturers and exporters to enable them to meet the increasing international competition especially with regard to employment of casual labour and overtime hours of work during high season which are necessitated by the requirement of meeting tight delivery schedules required for export. The Company has established factories and operating in the region for long time continuous efforts for betterment of labour has been conducted to improve the condition both at work and home for labour company till now haven’t faced any labour issues in terms of strike etc. The Company is undertaking various measures like lean manufacturing at ground level to increase the productivity and further reduce rejection to improve margin. IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL CL CL CL CL COOOOONNNNNTTTTTRRRRROOOOOL SL SL SL SL SYSYSYSYSYSTTTTTEEEEEMMMMM The Company’s internal control system has been designed to provide for: i) Accurate recording of transactions with internal checks and prompt reporting through SAP ii) Adhere to applicable Accounting standards and policies. iii) Review of capital investments and long term business plans. iv) Periodic review meetings to manage effectively implementation of system. v) Compliance with applicable statutes, policies, listing requirements and operating guidelines vi) Effective use of resources and safeguarding of assets. vii) IT systems with in built controls to facilitate all of the above. 74 Pearl Global Industries Limited Annual Report 2019-20 Management Discussion and Analysis (contd...) The Company has adequate systems of internal controls to ensure that transactions are properly recorded, authorized and reported apart from safeguarding its assets. Your company has successfully implemented SAP for its manufacturing units and will continue upgrading the same. The Company has its own Corporate Internal Audit set up which carries out periodic audits at all locations and all functions and brings out deviations to internal control procedures. The obser vations arising out of audit are periodically reviewed and compliance ensured. It has successfully implemented SAP for its manufacturing units and will continue upgrading the same. HUHUHUHUHUMMMMMAAAAAN RN RN RN RN REEEEESSSSSOOOOOUUUUURRRRRCCCCCE ME ME ME ME MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT The Pearl Global Industries Limited, forward-thinking and employee centric human resource department is devoted to providing effective policies, procedures, people-friendly guidelines and support governance with the organization. Our HR philosophy revolves around right people for the right job, maintaining a safe, hygienic, and sustainable work environment across geographies, capability building at all level with program such as iLEAD [Leadership Development Program], SEED [Operational Development Program]; innovate with technolog y with our Human Resource Management System, Pay for Performance [Achieve: Pearl’s Performance Management System]. There by building a PearlONE culture, with employee engagement being centric of all our HR initiatives. Presently Company employs ……… work force. FFFFFooooor Co r Commmmmpppppaaaaannnnnyyyyy’’’’’s Ps Ps Ps Ps Prrrrrooooogggggrrrrraaaaammmmmsssss;;;;; r Co r Commmmmmmmmmuuuuunnnnnititititity ouy ouy ouy ouy our Co r Co r Co r Co r Co r Co a) HHHHHeaeaeaeaealllllttttthhhhh: M: M: M: M: Meeeeedddddicicicicicaaaaalllll::::: Health Camps for workers across all our facilities, every quarter. b) EdEdEdEdEducucucucucaaaaatttttioioioioionnnnn::::: Scholarship funding education for more than 200 primary & middle school children. c) WWWWWooooomememememen En En En En Emmmmmpppppooooowwwwweeeeerrrrrmememememennnnnttttt::::: i) Personal Advancement and career enhancement (P.A.C.E.) empowering women in their professional and personal lives. ii) Training on menstrual hygiene & sanitary napkins vending machine. iii) HER health programme to raise health related awareness. iv) Gender equality project, in partnership with M&S British High Commission. d) MMMMMy Vy Vy Vy Vy Voooooiciciciciceeeee::::: Third party ethics helpline for whistle blowing of unethical practices, POSH issues and violation of code of conducts at workplace F 25% OR MOR MOR MOR MOR MORRRRRE) IE) IE) IE) IE) IN KN KN KN KN KEEEEEY FIY FIY FIY FIY FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL RL RL RL RL RAAAAATTTTTIIIIIOOOOOSSSSS F 25% O S (I.E. C. C. C. C. CHHHHHAAAAANNNNNGGGGGE OE OE OE OE OF 25% O F 25% O S (I.E DDDDDEEEEETTTTTAAAAAIIIIILLLLLS OS OS OS OS OF SF SF SF SF SIIIIIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT CT CT CT CT CHHHHHAAAAANNNNNGGGGGEEEEES (I.E S (I.E F 25% O S (I.E Details of changes ins Key Financial Ratios are given below: S.NS.NS.NS.NS.Nooooo..... PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Debtors Turnover (days) Inventory Turnover (days) Y 2019-20 Y 2019-20 FFFFFY 2019-20 Y 2019-20 Y 2019-20 43.08 135.11 Y 2018-19 CoCoCoCoCommmmmpppppaaaaarrrrrisioisioisioisioisionnnnn ExExExExExppppplllllaaaaannnnntttttioioioioion fon fon fon fon for chr chr chr chr chaaaaannnnnggggge ie ie ie ie in Rn Rn Rn Rn Raaaaatttttioioioioio Y 2018-19 Y 2018-19 FFFFFY 2018-19 Y 2018-19 48.37 118.25 -10.94% Better recovery policy follow up with buyers & buyers mix of with lower payment terms. 14.25% Due to COVID-19, few of buyers had postponed delivery schedules, so inventories increased at year end. Interest Coverage Ratio 2.53 3.54 -28.39% Profitability reduced due to withdrawal of Government incentives during the year. Sales marginally down due to COVID-19, likely to improve going forward. Current Ratio Debt Equity Ratio Operating Profit Margin 1.19 0.23 11.77% 1.15 0.13 14.45% 3.61% Better Management of Working capital. 76.81% Decrease in Net Equity due to INDAS 116 and Hedge Accounting impact. -18.55% Partially due to GOVID-19 impact and marginally reduced margins, likely to improve in coming years. Net Profit Margin Net Worth 0.58% 29,866.97 2.48% 30,897.52 -76.49% Due to withdrawal of Government incentives during the year. -3.34% Decrease in Net Equity due to INDAS 116 and Hedge Accounting impact, despite net profits. 11111 22222 33333 44444 55555 66666 77777 88888 CCCCCAAAAAUUUUUTTTTTIIIIIOOOOON SN SN SN SN STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate, intend, will, expect and other similar expressions are intended to identify such forward looking statements. The Company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Besides the Company cannot guarantee that these assumptions and expectations are accurate or will be realized and actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. Pearl Global Industries Limited Annual Report 2019-20 75 Business Responsibility Report (2019-20) SSSSSECECECECECTTTTTIIIIIOOOOON AN AN AN AN A: G: G: G: G: GEEEEENNNNNEEEEERRRRRAAAAAL IL IL IL IL INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON AN AN AN AN ABBBBBOOOOOUUUUUT TT TT TT TT THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY 1. Corporate Identity Number (CIN) of the Company L74899DL1989PLC036849 2. Name of the Company 3. Registered address 4. Website 5. E-mail id Pearl Global Industries Limited A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028 www.pearlglobal.com sandeep.sabharwal@pearlglobal.com 6. Financial Year reported 31st March 2020 7. Sector(s) that the Company is engaged in (industrial activity code-wise) NIC Code: 141 Manufacturing of wearing apparels 8. List three key products/services that the Company Manufacturing of wearing apparels manufactures/provides (as in balance sheet) 9. Total number of locations where business activity is undertaken by the Company (a) Number of International Locations (b) Number of National Locations 18 7 11 10. Markets served by the Company -Local/State/ International National/International SSSSSECECECECECTTTTTIIIIIOOOOON BN BN BN BN B: FI : FI : FI : FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL DL DL DL DL DEEEEETTTTTAAAAAIIIIILLLLLS OS OS OS OS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY : FI 1. Paid up Capital (INR) 2. Total Turnover (INR) 3. Total profit after taxes (INR) 21,66,39,370 ` 825.33 Crore ` 5.01 Crore 4. Total Spending on Corporate Social Responsibility 1.03% (` 22.15 Lakh) of PAT of FY 2018-19 (CSR) as percentage of profit after tax (%) 5. List of activities in which expenditure in 4 above has been incurred:- (a) Education and other activities (b) Health care activities SSSSSECECECECECTTTTTIIIIIOOOOON CN CN CN CN C: O: O: O: O: OTTTTTHHHHHEEEEER DR DR DR DR DEEEEETTTTTAAAAAIIIIILLLLLSSSSS 1. Does the Company have any Subsidiary Company/ Companies? The Company has following subsidiaries: i. Pearl Apparel Fashions Limited ii. Pearl Global Kaushal Vikas Limited iii. SBUYS E-Commerce Limited iv. Norp Knit Industries Limited v. Pearl Global Fareast Limited vi. Pearl Global (HK) Limited vii. Vin Pearl Global Vietnam Limited viii. Pearl Global Vietnam Company Limited ix. Pearl Grass Creations Limited x. A&B Investment Limited xi. Prudent Fashions Limited xii. DSSP Global Limited 76 Pearl Global Industries Limited Annual Report 2019-20 Business Responsibility Report (2019-20) (contd...) xiii. PT Pinnacle Apparels xiv. Pearl Global(Chang Zhou) Textile Technology Co., Ltd. xv. Pearl Global F.Z.E xvi. PGIC Investment Limited 2. Do the Subsidiary Company/Companies participate No in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s): 3. Do any other entity/entities(e.g. suppliers, distributors No etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%] SSSSSECECECECECTTTTTIIIIIOOOOON DN DN DN DN D: B: B: B: B: BR IR IR IR IR INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN 1. Details of Director/Directors responsible for BR (a) Details of the Director/Director responsible for implementation of the BR policy/policies 1. DIN Number : 00003044 2. Name : Mr. Pulkit Seth 3. Designation : Managing Director (b) Details of the BR head No. Particulars 1 DIN Number (if applicable) 2 Name 3 Designation 4 5 Telephone number e-mail id Details 00003044 Mr. Pulkit Seth Managing Director 0124-4651000 Investor.pgil@pearlglobal.com 2. Principle-wise (as per NVGs) BR Policy/policies (a) Details of compliance (Reply in Y/N) NNNNNooooo..... QQQQQuesuesuesuesuestttttioioioioionnnnnsssss 1. Do you have a policy/ policies for the principle? 2. Has the policy being formulated in consultation with the relevant stakeholders? 3. Does the policy conform to any national / international standards? If yes, specify? (50 words) 4. Has the policy being approved by the Board? Is yes, has it been signed by MD/ owner/ CEO/ appropriate Board Director? 5. Does the company have a specified committee of the Board/Director/ Official to oversee the implementation of the policy? P 1P 1P 1P 1P 1 P 2P 2P 2P 2P 2 P 3P 3P 3P 3P 3 P 4P 4P 4P 4P 4 P 5P 5P 5P 5P 5 P 6P 6P 6P 6P 6 P 7P 7P 7P 7P 7 P 8P 8P 8P 8P 8 P 9P 9P 9P 9P 9 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y 6. Indicate the link for the policy to be viewed online? http://www.pearlglobal.com/investors/policy/ Pearl Global Industries Limited Annual Report 2019-20 77 Business Responsibility Report (2019-20) (contd...) NNNNNooooo..... QQQQQuesuesuesuesuestttttioioioioionnnnnsssss 7. Has the policy been formally communicated to all relevant internal and external stakeholders? 8. Does the company have in-house structure to implement the policy/ policies? 9. Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders' grievances related to the policy/ policies? 10. Has the company carried out independent audit/ evaluation of the working of this policy by an internal or external agency? P 1P 1P 1P 1P 1 P 2P 2P 2P 2P 2 P 3P 3P 3P 3P 3 P 4P 4P 4P 4P 4 P 5P 5P 5P 5P 5 P 6P 6P 6P 6P 6 P 7P 7P 7P 7P 7 P 8P 8P 8P 8P 8 P 9P 9P 9P 9P 9 The Policy is available on the website of the Company and is expected to be adhered by all the stakeholders. Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y The Company is working on developing and improving its system for evaluating the implementation of the policies. The policies are evaluated internally from time to time and updated whenever required. (b) If answer to the question at serial number 1 against any principle, is 'No', please explain why: (Tick up to 2 options) NNNNNooooo..... QQQQQuesuesuesuesuestttttioioioioionnnnnsssss P 1P 1P 1P 1P 1 P 2P 2P 2P 2P 2 P 3P 3P 3P 3P 3 P 4P 4P 4P 4P 4 P 5P 5P 5P 5P 5 P 6P 6P 6P 6P 6 P 7P 7P 7P 7P 7 P 8P 8P 8P 8P 8 P 9P 9P 9P 9P 9 1 The company has not understood the Principles 2 The company is not at a stage where it finds itself in a position to formulate and implement the policies on specified principles 3 The company does not have financial or manpower resources available Not Applicable for the task 4 5 It is planned to be done within next 6 months It is planned to be done within the next 1 year 6 Any other reason (please specify) 3. Governance related to BR (a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year The BR performance would be assessed yearly. However, there is no fixed term. The Board may review the BR initiatives and other related policies on regular intervals. (b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published? The Business Responsibility Report would be published annually on the website of Company at www.pearlglobal.com SSSSSECECECECECTTTTTIIIIIOOOOON EN EN EN EN E: P: P: P: P: PRRRRRIIIIINNNNNCCCCCIIIIIPPPPPLLLLLEEEEE-----WWWWWIIIIISSSSSE PE PE PE PE PEEEEERRRRRFFFFFOOOOORRRRRMMMMMAAAAANNNNNCCCCCEEEEE ics, Tics, Trrrrraaaaannnnnssssspppppaaaaarrrrreeeeencncncncncy ay ay ay ay and And And And And Accccccccccououououounnnnntttttabababababilililililititititityyyyy ics, Tics, T uct and gnd gnd gnd gnd govovovovoveeeeerrrrrn tn tn tn tn thehehehehemmmmmselselselselselvvvvves wes wes wes wes wititititith Eh Eh Eh Eh Ettttthhhhhics, T uct a ld cooooondndndndnduct a uct a ld c ld c ses shou le 1: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 1: B PPPPPrrrrriiiiincincincincincippppple 1: B le 1: B ses should c uct a ld c ses shou le 1: B 1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures / Suppliers / Contractors / NGOs /Others? 2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so. No The policy is expected to be adhered by the other stakeholders. During the financial year 2019-20, the Company has received three complaints and all three complaints have been resolved satisfactorily. 78 Pearl Global Industries Limited Annual Report 2019-20 Business Responsibility Report (2019-20) (contd...) PPPPPrrrrriiiiincincincincincippppple 2: B e safe and cnd cnd cnd cnd cooooonnnnntttttrrrrribuibuibuibuibuttttte te te te te to so so so so suuuuussssstttttaaaaaiiiiinnnnnabababababilililililititititity ty ty ty ty thhhhhrrrrrouououououggggghouhouhouhouhouttttt e safe a nd serrrrrvvvvvicicicicices tes tes tes tes thhhhhaaaaat at at at at arrrrre safe a e safe a nd se ide goooooooooods ads ads ads ads and se nd se ide g ses should pld pld pld pld prrrrrovovovovovide g ide g ses shou le 2: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 2: B le 2: B le 2: B e safe a nd se ide g ses shou ife cycleycleycleycleycle ife c ife c tttttheiheiheiheiheir lr lr lr lr life c ife c 1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities. 2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product(optional): (a) Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain? (b) Reduction during usage by consumers (energy, water) has been achieved since the previous year? 3. Does the company have procedures in place for sustainable sourcing (including transportation)? (a) If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so. 4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? (a) If yes, what steps have been taken to improve their capacity and capability of local and small vendors? 5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so. The Company is in the business of manufacturing of wearing apparel and all the applicable laws relating to the manufacturing of wearing apparels including environmental laws are duly complied. The Company is committed to environment sustainably. The Company works towards reduction and optimal utilization of energy, water, raw material, etc. by incorporating new techniques and innovative ideas. The Company's products do not have any broad based impact on energy and water consumption by consumers. However, the Company on continuous basis takes several measures to conserve the consumption of energy and water. The Company is committed to reduction of waste, conservation of raw material and pursuing zero pollution through various initiatives, technological upgradation and improvement projects. The Company is in process of setting procedures for sustainable sourcing. The Company prefers local & small producers for various inputs. The Product and waste are scraped (being non recyclable) g of allllll el el el el emmmmmppppplololololoyeyeyeyeyeeseseseses g of a ses should pld pld pld pld prrrrrooooomotmotmotmotmote te te te te the whe whe whe whe welelelelellllllbbbbbeieieieieinnnnng of a g of a ses shou le 3: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 3: B PPPPPrrrrriiiiincincincincincippppple 3: B le 3: B g of a ses shou le 3: B 1. Please indicate the Total number of employees. 2. Please indicate the Total number of employees hired on temporary / contractual / casual basis. 6840 7360 3. Please indicate the Number of permanent women employees. 3341 4. Please indicate the Number of permanent employees with NA disabilities 5. Do you have an employee association that is recognized by NA management Pearl Global Industries Limited Annual Report 2019-20 79 Business Responsibility Report (2019-20) (contd...) 6. What percentage of your permanent employees is members NA of this recognized employee association? 7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year. No. Category 1. 2. Child labour / forced labour / involuntary labour Sexual harassment 3. Discriminatory employment No of complaints filed during the financial year No of complaints pending as on end of the financial year NIL 1 NIL N.A. NIL N.A. 8. What percentage of your under mentioned employees were given safety & skill up- gradation training in the last year? (a) Permanent Employees (b) Permanent Women Employees (c) Casual/Temporary/Contractual Employees (d) Employees with Disabilities 100% 100% 100% 100% PPPPPrrrrriiiiincincincincincippppple 4: B le 4: B le 4: B le 4: Buuuuusisisisisinesnesnesnesnesses shou ses shou ses shou ld r ld r ld resesesesespppppeeeeect tct tct tct tct the ihe ihe ihe ihe innnnnttttteeeeerrrrresesesesesttttts of s of s of s of, a, a, a, a, and bnd bnd bnd bnd be re re re re resesesesespppppooooonnnnnsivsivsivsivsive te te te te tooooowwwwwaaaaarrrrrds ads ads ads ads allllll sl sl sl sl stttttaaaaakkkkkehoehoehoehoeholdeldeldeldelders, es rs, es rs, es rs, espppppeeeeeciaciaciaciaciallllllylylylyly ses should r le 4: B ses shou ld r s of rs, es ttttthose w hose w hose w hose who aho aho aho aho arrrrre de de de de disadisadisadisadisadvvvvvaaaaannnnntttttaaaaagggggeeeeeddddd, v, v, v, v, vuuuuulnelnelnelnelnerrrrrababababable ale ale ale ale and mnd mnd mnd mnd maaaaargrgrgrgrgiiiiinnnnnaaaaalllllizeizeizeizeizeddddd hose w 1. Has the company mapped its internal and external Yes stakeholders? Yes/No 2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders. Yes 3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so, provide details thereof, in about 50 words or so. We adhere to preference on payment and orders for such stakeholders. ld resesesesespppppeeeeect act act act act and pnd pnd pnd pnd prrrrrooooomotmotmotmotmote he he he he huuuuummmmmaaaaan rn rn rn rn rigigigigighhhhhtttttsssss ld r ld r ses shou le 5: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 5: B PPPPPrrrrriiiiincincincincincippppple 5: B le 5: B ses should r ld r ses shou le 5: B 1. Does the policy of the company on human rights cover only the company or extend to the Group / Joint Ventures / Suppliers / Contractors /NGOs / Others? 2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management? Yes. The policy is expected to be adhered by the other stakeholders. No complaints relating to human rights were received during the financial year. e efforrrrrttttts ts ts ts ts to ro ro ro ro resesesesestttttooooorrrrre te te te te the ehe ehe ehe ehe ennnnnvvvvviiiiirrrrrooooonnnnnmememememennnnnttttt e effo ct, and mnd mnd mnd mnd maaaaakkkkke effo e effo ct, a ld resesesesespppppeeeeect, pct, pct, pct, pct, prrrrrotototototeeeeect, a ct, a ld r ld r s shou le 6: Buuuuusisisisisinesnesnesnesness shou s shou le 6: B PPPPPrrrrriiiiincincincincincippppple 6: B le 6: B s should r e effo ct, a ld r s shou le 6: B 1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/ Suppliers / Contractors / NGOs / others Yes, the Company's policy is extended to the entire group and its subsidiaries/joint ventures follow and adopt the practices/policies of the Company. The Company ensures that it is implemented at all these levels and the Suppliers/ Contractors / NGOs dealing with the Company are also encouraged to maintain ethical standards in all their practices. 80 Pearl Global Industries Limited Annual Report 2019-20 Business Responsibility Report (2019-20) (contd...) 2. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If yes, please give hyperlink for webpage etc. 3. Does the company identify and assess potential environmental risks? Y/N 4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed? 5. Has the company undertaken any other initiatives on - clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please give hyperlink for web page etc. Yes, the Company has come up with various strategies/ initiatives to address global environmental issues. The Company has worked extensively to address such issues by striking a balance between economic growth and preservation of the environment. In line with the Company's commitment towards conservation of energy, all its units continue with their efforts to reduce wastage, optimise consumption and also to improve energy efficiency through innovative measures. Identification and assessment of environmental risk are under process. Project related to clean development mechanism are under planning stage. The Company has taken various initiatives in energy efficiency like waste heat recovery, replacement of Tube light with LED and high efficiency motor. The Company has also installed solar energy plant at its manufacturing plant located at Chennai. 6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported? Yes, the emissions/waste generated by the Company is within the permissible limits given by CPCB/ SPCB. 7. Number of show cause/ legal notices received from CPCB / SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year. Nil PPPPPrrrrriiiiincincincincincippppple 7: B ld do so in a rn a rn a rn a rn a resesesesespppppooooonnnnnsibsibsibsibsiblelelelele ld do so i ld do so i , shou g publllllic aic aic aic aic and rnd rnd rnd rnd reeeeeggggguuuuulllllaaaaatttttooooorrrrry py py py py pooooolllllicicicicicyyyyy, shou , shou g pub ses, wses, whehehehehen en en en en ennnnngggggaaaaagggggeeeeed id id id id in in in in in innnnnflflflflflueueueueuencincincincincinnnnng pub g pub ses, wses, w le 7: Buuuuusisisisisinesnesnesnesnesses, w le 7: B le 7: B , should do so i ld do so i , shou g pub le 7: B mmmmmaaaaannnnnnenenenenerrrrr 1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with: Yes (a) Apparel Export Promotion Council (b) Gurgaon Chamber of Commerce (c) Federation of Indian Export Organizations 2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas ( drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others) No Pearl Global Industries Limited Annual Report 2019-20 81 Business Responsibility Report (2019-20) (contd...) le devvvvveloeloeloeloelopppppmememememennnnnttttt le de ld suuuuuppppppppppooooorrrrrt it it it it inclnclnclnclncluuuuusivsivsivsivsive ge ge ge ge grrrrrooooowtwtwtwtwth ah ah ah ah and end end end end eqqqqquuuuuitititititababababable de le de ld s ld s ses shou le 8: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 8: B PPPPPrrrrriiiiincincincincincippppple 8: B le 8: B ses should s le de ld s ses shou le 8: B 1. Does the company have specified programmes / initiatives/ projects in pursuit of the policy related to Principle 8? If yes details thereof. 2. Are the programmes/projects undertaken through in-house team / own foundation /external NGO/government structures/any other organization? Principle 8 states that businesses should support inclusive growth and equitable development. The Company endeavours to achieve inclusive growth through its various skill development programmes to ensure that benefits accrued by the organization are available even to the marginalised sections of the society. Skill development programmes are conducted through in-house team. 3. Have you done any impact assessment of your initiative? Assessment initiatives are done frequently. 4. What is your company's direct contribution to community development projects- Amount in INR and the details of the projects undertaken. The Company has spent ` 22.15 Lakh towards its share of CSR obligations during the financial year 2019-20. 5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so. Yes. The Company has a dedicated team of employees to monitor the CSR activities. Also various activities such as internal tracking , periodical reports, telephonic and e-mail communications are carried out by the Company on regular basis to monitor the successful implementation of the initiative. PPPPPrrrrriiiiincincincincincippppple 9: B le 9: B le 9: B le 9: Buuuuusisisisisinesnesnesnesnesses shou ses shou ses shou ld eld e ld e ld ennnnngggggaaaaaggggge we we we we wititititith ah ah ah ah and pnd pnd pnd pnd prrrrrovovovovovide v ide v ide v ide vaaaaalllllue tue tue tue tue to to to to to theiheiheiheiheir cur cur cur cur cussssstttttooooomememememers ars ars ars ars and cnd cnd cnd cnd cooooonnnnnsssssuuuuumememememers irs irs irs irs in a rn a rn a rn a rn a resesesesespppppooooonnnnnsibsibsibsibsiblelelelele ses should e le 9: B ses shou ide v mmmmmaaaaannnnnnenenenenerrrrr 1. What percentage of customer complaints / consumer cases are pending as on the end of financial year. 2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes / No / N.A. / Remarks (additional information) 3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/ or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so. 4. Did your company carry out any consumer survey/ consumer satisfaction trends? A well-established system is in place for dealing with customer feedback and complaints. Customers are provided multiple options to connect with the Company through e-mail, telephone, website, social media, feedback forms, etc. All complaints are appropriately addressed and all efforts are taken to resolve the same. Yes, the Company displays necessary product information on the products label. No complaints or case is pending against the Company for unfair trade practices, irresponsible advertising and anti-competitive behaviour. Our buyers are reputed Retail Chains and we do get their feedback on consumer fashion trends and feedback. 82 Pearl Global Industries Limited Annual Report 2019-20 Corporate Governance Certificate To The Members of Pearl Global Industries Limited 1.1.1.1.1. We, Jayant Sood and Associates, Company Secretaries have examined the compliance of conditions of Corporate Governance by the Company PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEED D D D D (“the Company”), for the year ended on 31st March 2020, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and paras C and D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (“SEBI Listing Regulations”). MMMMMAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT’’’’’S RS RS RS RS REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTYYYYY 2.2.2.2.2. The compliance of conditions of Corporate Governance is the responsibility of the Management, This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure compliance with the conditions of the Corporate Governance stipulated in the SEBI Listing Regulations. 3.3.3.3.3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. 4.4.4.4.4. We have examined relevant records and documents maintained by the Company for the purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company. 5.5.5.5.5. We rate carried our examination in accordance with the Guidance Note on Certification of Corporate Governance issued by the Institute of Company Secretaries of India and was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. OOOOOPPPPPIIIIINNNNNIIIIIOOOOONNNNN 6.6.6.6.6. Based on our examination of the relevant records and according to the information and explanations provided to us and the representations provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and paras C and D of Schedule V of the Listing Regulations during the year ended 31 March 2020. 7.7.7.7.7. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company. For JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooood ad ad ad ad and As nd Assososososociaciaciaciaciattttteseseseses nd As nd As nd As Company Secretaries ((((( JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooooddddd))))) (FCS: 4482) (COP: 22410) UUUUUDDDDDIIIIIN: F004482B000881501 N: F004482B000881501 N: F004482B000881501 N: F004482B000881501 N: F004482B000881501 Place: Gurugram Date: 07.10.2020 Pearl Global Industries Limited Annual Report 2019-20 83 Declaration of Compliance with Code of Conduct of Board of Directors and Senior Management This is to certify that as per the provisions of Regulation 26 and Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board Members and the Senior Management personnel have affirmed compliance with the Code of Conduct for the financial year ended 31st March, 2020. Place: Gurugram Date : July28, 2020 l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo FFFFFooooor Pr Pr Pr Pr Peaeaeaeaearrrrrl Glo l Glo l Glo PPPPPuuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh Managing Director DIN 00003044 Certification by Managing Director and Chief Financial Officer of Pearl Global Industries Limited We, Pulkit Seth, Managing Director and Kashmir Singh Rathour Chief Financial Officer of Pearl Global Industries Limited to the best of your knowledge and belief certify that: A. We have reviewed that financial statements and the Cash Flow Statement for the year ended 31st March, 2020 and to best of our knowledge and belief: 1) 2) these statement do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. these statement together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations. B. We also certify that to the best of our knowledge and belief, there are no transactions entered into by Pearl Global Industries Limited during the year, which are fraudulent, illegal or violate of the Company’s Code of Conduct. C. We are responsible for establishing and maintaining internal controls for financial reporting and have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies. D. We have indicated to the Auditors and the Audit Committee: 1) Significant changes, if any. in internal control over financial reporting during the year. 2) Significant changes, if any, in accounting policies during the year and that the same have been disclosed in the notes to the financial statement; and 3) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the company’s internal control system over financial reporting. Place: Gurugram Date : July 28, 2020 (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) g Dirrrrreeeeectctctctctooooorrrrr g Di MMMMMaaaaannnnnaaaaagggggiiiiinnnnng Di g Di g Di r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) (Ka(Kashshshshshmmmmmiiiiir Si r Si r Si (Ka(Ka r Si (Ka l Officeeeeerrrrr l Offic ief Fief Fiiiiinnnnnaaaaancianciancianciancial Offic l Offic ief Fief F CCCCChhhhhief F l Offic 84 Pearl Global Industries Limited Annual Report 2019-20 Certificate of Non-disqualification of Directors (Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015) To, The Members of Pearl Global Industries Limited A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028 We have examined the relevant register, records, forms, returns and disclosures received from the Directors of PPPPPeaeaeaeaearrrrrl Glo l Globbbbbaaaaalllll l Glo l Glo l Glo IIIIIndndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd, having CIN L74899DL1989PLC036849 and having registered office at A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028, (hereinafter referred to as “the Company”), produced before us by the Company for the purpose of the issuing this Certificate, in accordance with the Regulation 34(3) read with Schedule V Para-C clause 10(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In our opinion and to the best of our information and according to the verifications (including Director Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company and respective Directors, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2020 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority. S. NS. NS. NS. NS. Nooooo..... DDDDDIIIIINNNNN NNNNNaaaaame of Di me of Di me of Di me of Dirrrrreeeeectctctctctooooorrrrr me of Di DDDDDaaaaattttte of a e of a e of a e of appppppppppoooooiiiiinnnnntttttmememememennnnnt it it it it in Co n Con Commmmmpppppaaaaannnnny (Dy (Dy (Dy (Dy (DDDDDD-----MMMMMMMMMM-----YYYYYYYYYYYYYYYYYYYY))))) n Con Co e of a 1 2 3 4 5 6 7 8 9 00003021 00003044 01388430 01945795 00036080 01390190 00731956 01928855 08712718 Mr. Deepak Seth Mr. Pulkit Seth Mrs. Shifalli Seth Mr. Vinod Vaish# Mr. Chittranjan Dua Mr. Anil Nayar Mr. Rajendra Kumar Aneja Mr. Abhishek Goyal Mrs. Madhulika Bhupatkar 22.03.1994 01.11.2004 19.01.2012 19.01.2012 12.09.2006 19.01.2012 12.09.2006 26.05.2017 18.03.2020 # Mr. Vinod Vaish has resigned from the Board of the Company with effect from April 30, 2020. Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company. For JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooood & As d & Assososososociaciaciaciaciattttteseseseses d & As d & As d & As Company Secretaries t K Sooooooooooddddd))))) t K S (C(C(C(C(CS JS JS JS JS Jaaaaayyyyyaaaaannnnnt K S t K S t K S Proprietor FCS: 4482, CP No. 22410 Place: Gurugram Date: 28th July, 2020 F004482B000512814 F004482B000512814 F004482B000512814 UDIN: F004482B000512814 F004482B000512814 Pearl Global Industries Limited Annual Report 2019-20 85 Independent Auditor’s Report To The Members of Pearl Global Industries Limited he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss he Co he Co it of t RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ahe Ahe Ahe Ahe Audududududit of t it of t it of the Co he Co it of t QQQQQuuuuuaaaaalllllifieifieifieifieified Op d Opiiiiinnnnnioioioioionnnnn d Op d Op d Op l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrriesiesiesiesies LLLLLiiiiimmmmmitititititeeeeeddddd (((((hereinafter We have audited the accompanying consolidated financial statements of PPPPPeaeaeaeaearrrrrl Glo l Glo l Glo l Glo referred to as “the Holding Company”) ) ) ) ) and its Subsidiaries ( the Holding Company and its subsidiaries together referred as “the Group”), which comprise the Consolidated Balance Sheet as at March 31, 2020, and the consolidated statement of profit and loss, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statement, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements). In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and a true and fair view in conformity with Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2020, consolidated profit, consolidated changes in equity and consolidated cash flows for the year then ended. BBBBBaaaaasis fo sis fo sis fo sis for Qr Qr Qr Qr Quuuuuaaaaalllllifieifieifieifieified Op d Op d Op d Opiiiiinnnnnioioioioionnnnn sis fo d Op The inventories are carried in the consolidated balance sheet at ` 26,387.33 Lakh as at March31, 2020. In one of the subsidiary of the Holding Company, the component auditor of its subsidiary has reported that due to the outbreak of COVID-19 & consequential lockdown in Jakarta, no physical counting against inventories of ` 2,542.30 lakh as at March 31, 2020 was conducted by them and also no other alternative procedures were performed. In consequence they were unable to carry out auditing procedures necessary to obtain adequate assurance regarding the quantities and condition of such inventory. There were no other satisfactory auditing procedures that we could adopt to obtain sufficient evidence regarding the existence and valuation of such inventories. Consequently, we were unable to determine whether any adjustments to these amounts is necessary in the consolidated financial statement. We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in India in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Act and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in other matter paragraph below is sufficient and appropriate to provide a basis for our qualified opinion. n Con Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttts as as as as and And And And And Audududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Reeeeepppppooooorrrrrttttts ts ts ts ts theheheheherrrrreeeeeooooonnnnn n Con Co IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioion otn otn otn otn otheheheheher tr tr tr tr thhhhhaaaaan Co The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements and our auditor’s report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we 86 Pearl Global Industries Limited Annual Report 2019-20 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited are required to report that fact. As described in the Basis for Qualified Opinion section above, we were unable to determine whether any adjustments to the carrying amount of Inventory as at March 31, 2020 were necessary. Accordingly, we are unable to conclude whether or not the other information is materially misstated with respect to this matter. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year ended March 31, 2020. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Basis for Qualified Opinion section, we have determined the matters described below to be the key audit matters to be communicated in our report. For each key audit matter below, our description of how our audit addressed the matter is provided in that context. We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the ‘Auditor’s responsibilities for the audit of the consolidated financial statements’ section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements. S.S.S.S.S. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs NNNNNooooo..... HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr 11111 AAAAAdededededeqqqqquuuuuacacacacacy ay ay ay ay and cnd cnd cnd cnd cooooommmmmpppppletletletletleteeeeenesnesnesnesness of d s of d s of d isclos isclos isclosuuuuurrrrres of R es of R es of R es of Relelelelelaaaaattttteeeeeddddd s of disclos s of d isclos es of R PPPPPaaaaarrrrrttttty Ty Ty Ty Ty Trrrrraaaaannnnnsact sact sact sactioioioioionnnnnsssss sact (Refer Note 47 to the accompanying standalone financial statements as at March 31, 2020, forming integral part of the standalone financial statements) The Company has related party transactions which include among others, sale/purchase of goods to its subsidiaries and other related parties. This area was significant to our audit because of: - the significance of transactions with related parties during the year ended March 31, 2020, and Related party transactions are subject to compliance requirement under the Companies Act, 2013 and SEBI (Listing and Obligation Disclosure Requirements) 2015. - OOOOOuuuuur pr pr pr pr prrrrroooooccccceeeeeddddduuuuurrrrres ies ies ies ies inclnclnclnclncludeudeudeudeudeddddd, bu, bu, bu, bu, but wt wt wt wt weeeeerrrrre not l e not l e not l e not liiiiimmmmmitititititeeeeed td td td td tooooo e not l ttttthe fo he fo he fo he follllllololololowwwwwiiiiinnnnnggggg ::::: he fo • Obtaining an understanding of the Company’s policies and procedures in respect of identification of related parties and transactions with them, performed a walkthrough and evaluated the designs of control. We also traced the related parties from declaration given by directors, wherever applicable. Read the minutes of the meetings of Shareholders, Board of Directors and Audit Committee. Read relevant agreements on sample basis and approval process by audit committee and board of directors. • • • Tested material trade payables, trade receivables, loans outstanding (to evaluate existence of related party relationship and transactions) with the underlying contracts, confirmation letters and other supporting documents. • Assessed whether the transactions were recorded appropriately and ensured adequacy of the disclosures in the standalone Ind AS financial statements (including assessment of Management evaluation of compliance with Companies Act, 2013 and SEBI (LODR), 2015). • Wherever appropriate, our substantive work was Pearl Global Industries Limited Annual Report 2019-20 87 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited S.S.S.S.S. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs NNNNNooooo..... 22222 EEEEEvvvvvaaaaallllluuuuuaaaaatttttioioioioion of u n of u n of u n of uncncncncnceeeeerrrrrtttttaaaaaiiiiin tn tn tn tn taaaaax px px px px positositositositositioioioioionnnnns, ls, ls, ls, ls, litititititigigigigigaaaaatttttioioioioionnnnns as as as as andndndndnd n of u rrrrreeeee ccccc o vo vo vo vo veeeeerrrrra ba ba ba ba bi li li li li li ti ti ti ti ty of a y of a y of a y of amoumoumoumoumounnnnnt ou t ou t ou t outttttssssstttttaaaaandndndndndiiiiinnnnng wg wg wg wg wi ti ti ti ti th th th th th taaaaa xxxxx y of a t ou aaaaauuuuuttttthohohohohorrrrritititititiesiesiesiesies (Refer Note 13, Note 26 & Note 46 to the accompanying standalone financial statements as at March 31, 2020, forming integral part of the standalone financial statements) The Company has certain direct and indirect tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes and the status of amount recoverable. The eventual outcome of litigations is uncertain, and the positions taken by the Management of the Company are based on the application of significant judgement and estimation. The review of these matters requires application and interpretation of tax laws and reference to applicable judicial pronouncements. Given the uncertainty and application of significant judgment in this area in terms of the eventual outcome of litigations, we determined this to be a key audit matter. it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr supplemented by controls testing work which encompassed understanding, evaluating and testing key controls in respect of Related Party Transactions. Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of accounting , presentation and disclosure of Related Party Transactions. OOOOOuuuuur pr pr pr pr prrrrroooooccccceeeeeddddduuuuurrrrres ies ies ies ies inclnclnclnclncludeudeudeudeudeddddd, bu, bu, bu, bu, but wt wt wt wt weeeeerrrrre not l e not l e not l e not liiiiimmmmmitititititeeeeed td td td td tooooo e not l ttttthe fo he fo he fo he follllllololololowwwwwiiiiinnnnnggggg ::::: he fo • Obtained details of tax assessments of earlier years and demands as on March 31, 2020 from Management of the Company. • Conducted assessment of the Managements underlying assumptions in estimating the tax position, likelihood of outflow of economic resources being probable, possible or remote in respect of the litigations. • Conducted discussions with in-house tax/ legal counsel. Evaluated the independent confirmations taken by the Management from the consultants representing the Company before the various authorities. • Verifying demand notices received from various tax forums and evaluating the Company’s written responses to those matters (including follow up for the amounts recoverable); and • Assessing the adequacy of the Company’s disclosures. • Understanding and evaluating process and controls designed and implemented by the Management including for identification and monitoring of significant developments in relation to the litigations thereof. Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of accounting , presentation and disclosure of uncertain tax positions, litigations and recoverability of amount outstanding with tax authorities. 88 Pearl Global Industries Limited Annual Report 2019-20 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss he Co hose Chhhhhaaaaargrgrgrgrgeeeeed wd wd wd wd wititititith Gh Gh Gh Gh Govovovovoveeeeerrrrrnnnnnaaaaancncncncnce foe foe foe foe for tr tr tr tr the Co he Co hose C ies of Maaaaannnnnaaaaagggggeeeeemememememennnnnt at at at at and Tnd Tnd Tnd Tnd Those C hose C ies of M RRRRResesesesespppppooooonnnnnsibsibsibsibsibilililililititititities of M ies of M he Co hose C ies of M The Holding Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated total comprehensive income, consolidated changes in equity and consolidated cash flows of the Group in accordance with the Ind AS and other accounting principles generally accepted in India, including the Ind AS specified under Section 133 of the Act. The respective Board of Directors of the companies included in the Group are responsible for maintenance of the adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the directors of the Holding Company, as aforesaid. In preparing the consolidated financial statements, the respective Board of Directors of the Companies included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the Group respective companies or to cease operations, or has no realistic alternative but to do so. The respective Board of Directors of the companies included in the Group are responsible for overseeing their financial reporting process of the Group. AAAAAudududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititities fo ies fo ies fo ies for tr tr tr tr the Ahe Ahe Ahe Ahe Audududududit of t it of t it of t he Co he Co he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss it of the Co ies fo it of t he Co Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company and Subsidiaries which are incorporated in India has adequate internal financial controls with reference to the financial statements in place and the operating effectiveness of such controls. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we Pearl Global Industries Limited Annual Report 2019-20 89 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to which we are independent auditors to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the consolidated financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the entities consolidated in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the financial year ended March 31, 2020 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. OOOOOtttttheheheheher Mr Mr Mr Mr Maaaaatttttttttteeeeersrsrsrsrs (a) We did not audit the financial statements / financial information of four subsidiaries included in the consolidated financial results, whose financial statements reflect total assets (before eliminating of inter-company transaction of ` 19,993.02 lakh) of ` 87,815.02 lakh, total revenues (before eliminating of inter-company transaction of ` 22,860.55 lakh & ` 65,834.69 lakh) of ` 55,922 lakh & ` 1,65,923.68 lakh, total net profit after tax (before eliminating of inter- company transaction of (` 1.82) lakh & ` 1.26 lakh) of ` 277.28 lakh & ` 1,895.07 lakh and total comprehensive income (before eliminating of inter-company transaction of (` 1.82) lakh & ` 1.26 lakh) of ` 2,074.43 lakh & ` 4,626.27 lakh for the quarter & year ended March 31, 2020 respectively, as considered in the consolidated financial statements. These financial statements and other information have been audited by other auditors whose reports have been furnished to us by the Management and our conclusion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, and our report in terms of Regulation read with the Circulars, in so far as it relates to the aforesaid subsidiaries, are based on the reports of the other auditors and the procedures performed by us as stated in paragraph below. (b) Further, of these subsidiaries, three subsidiaries are located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective 90 Pearl Global Industries Limited Annual Report 2019-20 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited countries. The Holding Company’s Management has converted the financial statements of such subsidiaries from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. Independent firm of Chartered Accountant have audited these conversion adjustments made by the Holding Company Management in India. Our opinion in so far as it relates to the balances and affairs of such subsidiary companies located outside India are based on the report of other auditor in their respective countries and conversion adjustments prepared by the Management and audited by Independent firm of Chartered Accountants of India. Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matter with respect to our reliance on the work done and the reports of the other auditors and the financial statements / financial information certified by the Management. (c) Due to the outbreak of COVID-19 pandemic and the consequent nationwide lockdown commencing from March 23, 2020 onwards, we could not visit and carry out the audit processes physically at the Company’s premises. Further, the advisory on “Specific Considerations while conducting Distance Audit/ Remote Audit under current Covid-19 situation” issued by the Auditing and Assurance Standards Board of ICAI, give guidelines for the statutory audit via making arrangements to provide requisite documents/information through electronic medium and minimal physical movement. The entire audit has been carried considering these guidelines and alternative audit procedures as per SAs prescribed by the ICAI. Our opinion is not modified in respect of this matter. RRRRReeeeepppppooooorrrrrt ot ot ot ot on On On On On Otttttheheheheher Lr Lr Lr Lr Leeeeegggggaaaaal al al al al and Rnd Rnd Rnd Rnd Reeeeeggggguuuuulllllaaaaatttttooooorrrrry Ry Ry Ry Ry Reeeeeqqqqquuuuuiiiiirrrrreeeeemememememennnnntttttsssss 1. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the auditor on a separate financial statement and the other information of the subsidiaries, as noted in the other matter paragraph, we report to the extent applicable that: a) We/ the other auditors whose reports we have relied upon have sought and, except for the possible effect of the matter described in Basis for Qualified Opinion above, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the aforesaid consolidated financial statements. b) In our opinion, except for the possible effect of the matter described in Basis for Qualified Opinion above proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and reports of the other auditors. c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including (including Other Comprehensive Income), Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements. d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2020 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of the subsidiaries companies incorporated in India, none of the directors of the Group companies incorporated in India is disqualified as on March 31, 2020 from being appointed as a director in terms of Section 164 (2) of the Act. f ) With respect to the adequacy and the operating effectiveness of the internal financial controls with reference to these consolidated financial statements of the Holding Company and its subsidiaries incorporated in India, refer to our separate report in AAAAAnnnnnnexnexnexnexnexuuuuurrrrre – Ae – Ae – Ae – Ae – A..... g) With respect to the other matters to be included in the Auditor’s report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and Pearl Global Industries Limited Annual Report 2019-20 91 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited according to the explanation given to us and based on the consideration of the report of other auditors on separate financial statements of the subsidiaries, as noted in the “Other Matters” paragraph: i. The consolidated financial statements disclose impact of pending litigations on the consolidated financial position of the Group. - Refer Note 46 to the consolidated Ind AS financial statements ii. The Group did not have any material foreseeable losses in long-term contracts including derivative contracts during the year ended March 31, 2020. iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding company and its subsidiaries companies incorporated in India for the year ended March 31, 2020. 2. With respect to the matter to be included in the Auditors’ report under Section 197(16): In our opinion and based on the consideration of reports of other statutory auditors of the subsidiaries, the managerial remuneration for the year ended March 31, 2020 has been paid/ provided by holding Company and its subsidiaries incorporated in India to their directors in accordance with the provisions of Section 197 read with Schedule V of the Act. FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co Chartered Accountants, Firm Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Ag k Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) k Ag Partner Membership Number 073696 UUUUUDDDDDIIIIIN:20073696A N:20073696A N:20073696A N:20073696AAAAAAAAAAAAAAAABBBBBN7839 N7839 N7839 N7839 N:20073696A N7839 Place of Signature: New Delhi Date: July 28, 2020 92 Pearl Global Industries Limited Annual Report 2019-20 Annexure ‘A’ to the Independent Auditors’ Report t of Peaeaeaeaearrrrrlllll t of P he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnt of P t of P he Co t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the Co he Co t of e AAAAAnnnnnnexnexnexnexnexuuuuurrrrre ‘e ‘e ‘e ‘e ‘AAAAA’ t’ t’ t’ t’ to to to to to the Ihe Ihe Ihe Ihe Indendendendendepppppeeeeendendendendendennnnnt At At At At Audududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Reeeeepppppooooorrrrrt of e t of e t of P he Co t of e GloGloGloGloGlobbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ihe Ihe Ihe Ihe Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act,ct,ct,ct,ct, he Co he Co n 143 of t n 3 of Seeeeectctctctctioioioioion 143 of t n 143 of t n 3 of S ) of Sububububub-se-se-se-se-sectctctctctioioioioion 3 of S n 3 of S ) of S se (se (iiiii) of S ) of S se (se ( l Connnnntttttrrrrroooools uls uls uls uls undendendendender Cr Cr Cr Cr Clllllaaaaauuuuuse ( l Co l Co n 143 of the Co he Co n 143 of t n 3 of S ) of S l Co 2013 (“ttttthe Ahe Ahe Ahe Ahe Act”) ct”) ct”)ct”) 2013 (“ 2013 (“ ct”) 2013 (“ 2013 (“ In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2020, we have audited the internal financial controls with reference to financial statements of Pearl Global Industries Limited (the “Holding Company”) and its Subsidiaries, which are companies incorporated in India, as of that date. MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt’t’t’t’t’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititity foy foy foy foy for Ir Ir Ir Ir Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co l Co l Connnnntttttrrrrrooooolslslslsls l Co The respective Board of Directors of the Holding Company and its subsidiaries, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the respective Companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. AAAAAudududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititityyyyy Our responsibility is to express an opinion on the internal financial controls with reference to these consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to these consolidated financial statements was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to these consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Parent’s internal financial controls with reference to these consolidated financial statements. hese cooooonnnnnsososososolllllidididididaaaaattttteeeeed fid fid fid fid finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss hese c l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to to to to to these c hese c l Co g of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co g of I MMMMMeaeaeaeaeannnnniiiiinnnnng of I g of I hese c l Co g of I A company’s internal financial control with reference to these consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference to financial statements includes those policies and procedures that Pearl Global Industries Limited Annual Report 2019-20 93 Annexure ‘A’ to the Independent Auditors’ Report (contd...) (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. IIIIInnnnnheheheheherrrrreeeeennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititaaaaatttttioioioioionnnnns of I s of I s of I s of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co l Co l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to fio fio fio fio finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss s of I l Co Because of the inherent limitations of internal financial controls with reference to these consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to these consolidated financial statements to future periods are subject to the risk that the internal financial control with reference to these consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. OpOpOpOpOpiiiiinnnnnioioioioionnnnn In our opinion to the best of our information and according to the explanation given to us and based on consideration of the reports of the other auditors referred to in Other Matter paragraph below, the Holding and its Subsidiaries companies, which are companies incorporated in India, have, maintained in all material respects, an adequate internal financial controls system with reference to these consolidated financial statements and such internal financial controls with reference to these consolidated financial statements were operating effectively as at March 31, 2020, based on the internal control criteria established by the respective companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. OOOOOtttttheheheheher Mr Mr Mr Mr Maaaaatttttttttteeeeersrsrsrsrs Our aforesaid report under Section 143 (3) (i) of the Act on the adequacy and operating effectiveness of the internal financial controls, in so far as it relates to three subsidiary companies, which are incorporated in India and where such reporting under Section 143(3) of the companies Act 2013, is applicable is based on the corresponding report of the auditor of such subsidiary incorporated in India. Our opinion is not modified in respect of the above matters. FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co..... a & Co a & Co a & Co Chartered Accountants, Firm Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) k Ag k Ag k Ag Partner Membership Number 073696 N:20073696AAAAAAAAAAAAAAAABBBBBN7839 N7839 N7839 N:20073696A UUUUUDDDDDIIIIIN:20073696A N:20073696A N7839 N7839 N:20073696A Place of Signature: New Delhi Date: July 28, 2020 94 Pearl Global Industries Limited Annual Report 2019-20 Consolidated Balance Sheet as at March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs I.I.I.I.I. AsAsAsAsAssetsetsetsetsetsssss 1.1.1.1.1. 2.2.2.2.2. Property, plant and equipment NNNNNooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss (a) (b) Capital work in progress Right to use asset (c) Investment properties (d) (e) Goodwill (f ) Other Intangible assets Financial assets (g) (i) (ii) (iii) Other financial assets Investment Loans Non current tax assets (net) (h) Deferred tax assets (i) (j) Other non current assets TTTTTotototototaaaaal Nl Nl Nl Nl Nooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss CCCCCuuuuurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss (a) (b) Inventories Financial assets Investments (i) (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than cash and cash equivalents (v) (vi) Other financial assets Loans (c) Other current assets TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss TTTTTotototototaaaaal As l As l As l Assetsetsetsetsetsssss l As IIIIII.I.I.I.I. EqEqEqEqEquuuuuititititity Ay Ay Ay Ay And Lnd Lnd Lnd Lnd Liabiabiabiabiabilililililitititititiesiesiesiesies 1.1.1.1.1. Equity share capital EqEqEqEqEquuuuuititititityyyyy (a) (b) Other equity EqEqEqEqEquuuuuititititity ay ay ay ay attttttttttrrrrribuibuibuibuibutttttababababable t le t le t le to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs le t Non - controlling interest TTTTTotototototaaaaal el el el el eqqqqquuuuuititititityyyyy 2.2.2.2.2. LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies NNNNNooooonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies Financial liabilities (a) Borrowings (i) (ii) Lease Liabilities (ii) Others financial liabilities Provisions (b) (b) Deferred tax liabilities (c) Other non current liabilities TTTTTotototototaaaaal nol nol nol nol nonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies CCCCCuuuuurrrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies (a) Financial liabilities Borrowings (i) (ii) Lease Liabilities (iii) Trade payables Total outstanding due of micro enterprises and small enterprises Total outstanding due of creditors other than micro enterprises and small enterprises (iv) Other financial liabilities (b) Other current liabilities (c) (d) Current tax liabilities (net) Provisions TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies TTTTTotototototaaaaal el el el el eqqqqquuuuuititititity ay ay ay ay and lnd lnd lnd lnd liabiabiabiabiabilililililitititititiesiesiesiesies Summary of Significant Accounting Policies NNNNNotototototeeeee NNNNNooooo..... 4 5 49 6 7 8 9 10 11 12 13 14 15 9 16 17 18 10 11 14 19 20 21 49 22 23 12 24 21A 49 25 22 24 23 26 3 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 22,189.06 3,610.29 10,725.98 7,393.26 1,792.66 84.76 3,084.37 2,445.25 1,363.86 87.61 763.99 772.82 -------------------------------------------- 54,313.90 54,313.90 54,313.90 54,313.90 54,313.90 -------------------------------------------- 26,387.33 692.68 22,042.47 8,808.89 2,168.83 1,731.24 114.99 8,970.37 -------------------------------------------- 70,916.80 70,916.80 70,916.80 70,916.80 70,916.80 -------------------------------------------- 125,230.70 125,230.70 125,230.70 125,230.70 125,230.70 =================== 2,166.39 47,891.00 -------------------------------------------- 50,057.39 50,057.39 50,057.39 50,057.39 50,057.39 1,296.44 -------------------------------------------- 51,353.83 51,353.83 51,353.83 51,353.83 51,353.83 -------------------------------------------- 9,983.68 6,987.43 246.97 2,079.72 248.31 2,997.91 -------------------------------------------- 22,544.02 22,544.02 22,544.02 22,544.02 22,544.02 -------------------------------------------- 25,715.32 810.25 331.05 17,775.62 5,717.63 857.35 68.40 57.23 -------------------------------------------- 51,332.85 51,332.85 51,332.85 51,332.85 51,332.85 -------------------------------------------- 125,230.70 125,230.70 125,230.70 125,230.70 125,230.70 =================== 24,355.89 778.62 - 7,429.89 1,897.56 114.94 3,276.16 2,293.60 1,402.45 104.00 452.22 1,354.45 -------------------------------------------- 43,459.78 43,459.78 43,459.78 43,459.78 43,459.78 -------------------------------------------- 23,632.17 - 22,177.86 9,434.12 1,707.71 1,664.72 1,687.43 6,389.55 -------------------------------------------- 66,693.56 66,693.56 66,693.56 66,693.56 66,693.56 -------------------------------------------- 110,153.34 110,153.34 110,153.34 110,153.34 110,153.34 =================== 2,166.39 44,820.35 -------------------------------------------- 46,986.73 46,986.73 46,986.73 46,986.73 46,986.73 1,153.26 -------------------------------------------- 48,140.00 48,140.00 48,140.00 48,140.00 48,140.00 -------------------------------------------- 8,106.76 - 222.00 2,112.60 340.46 3,309.63 -------------------------------------------- 14,091.45 14,091.45 14,091.45 14,091.45 14,091.45 -------------------------------------------- 23,486.07 - 63.70 18,042.77 5,156.89 866.66 81.67 224.13 -------------------------------------------- 47,921.89 47,921.89 47,921.89 47,921.89 47,921.89 -------------------------------------------- 110,153.34 110,153.34 110,153.34 110,153.34 110,153.34 =================== FFFFFooooor & o r & o r & o r & on bn bn bn bn behehehehehaaaaalllllf of B f of B f of B f of Boooooaaaaarrrrrd of Di d of Di d of Di d of Dirrrrreeeeectctctctctooooors of P rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd r & o f of B d of Di rs of P l Glo (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 The accompanying notes form an integral part of these consolidated financial statements As per our Report of even date attached FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss Firm’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Agaaaaarrrrrwwwwwaaaaalllll))))) k Agk Ag Partner Membership Number 073696 Place of Signature: New Delhi Date: July 28, 2020 (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si r Si (Ka(Kashshshshshmmmmmiiiiir Si (Ka(Ka r Si (Ka Chief Financial Officer Place of Signature: Gurugram Date: July 28, 2020 Pearl Global Industries Limited Annual Report 2019-20 95 Consolidated Statement of Profit and Loss for the year ended March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs IIIII IIIIIIIIII IIIIIncncncncncooooomememememe Revenue from operations Other income me (I+II)I)I)I)I) me (I+I TTTTTotototototaaaaal il il il il incncncncncooooome (I+I me (I+I me (I+I ExExExExExpppppeeeeennnnnsessessessesses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, work in progress and stock in trade Finance costs (d) Employee benefits expense (e) (f ) Depreciation and amortization expense (g) Other expenses TTTTTotototototaaaaal exl exl exl exl expppppeeeeennnnnsessessessesses IIIIIIIIIIIIIII ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmms as as as as and tnd tnd tnd tnd taaaaax (Ix (Ix (Ix (Ix (IIIIIIIIIII-----IIIIIVVVVV ))))) ofit/ ( PPPPPrrrrrofit/ ( ofit/ ( ofit/ ( IIIIIVVVVV ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal Il Il Il Il Ittttteeeeemmmmmsssss VVVVV ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre te te te te taaaaax (x (x (x (x (VVVVV-----VVVVVI)I)I)I)I) ofit/ ( ofit/ ( PPPPPrrrrrofit/ ( ofit/ ( VVVVVIIIII TTTTTaaaaax exx exx exx exx expppppeeeeennnnnsesesesese::::: (a) Current tax (b) Deferred tax (c) Adjustment of tax relating to earlier years he year (r (r (r (r (VVVVVIIIIIIIIII-----VVVVVIIIIIIIIIII)I)I)I)I) he yea s) for tr tr tr tr the yea he yea s) fo ofit/(loslosloslosloss) fo s) fo ofit/( VVVVVIIIIIIIIII PPPPPrrrrrofit/( ofit/( he yea s) fo ofit/( VVVVVIIIIIIIIIIIIIII OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe (((((AAAAA))))) (i) (ii) (i) (B) (B)(B) (B) (B) Items that will not be reclassified to profit and loss (a) Re-measurement gains/ (losses) on defined benefit plans Income tax on items that will not be reclassified to profit and loss Items that will be reclassified to profit and loss (a) Foreign Exchange Translation Reserve (b) Fair Valuation of Investment in Mutual fund (c) Net movement in effective portion of cash flow hedge reserve Income tax on items that will be reclassified to profit and loss (ii) he yearrrrr, net of t OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea , net of taaaaaxxxxx , net of t , net of t he yea he yea he yea , net of t , net of taaaaaxxxxx , net of t , net of t he yearrrrr, net of t he yea he yea IIIIIXXXXX TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea , net of t he yea PPPPPrrrrrofit Aofit Aofit Aofit Aofit Attttttttttrrrrribibibibibititititituuuuuababababable t le tooooo::::: le t le t le t Equity shareholders Non-controlling interests OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome ame ame ame ame attttttttttrrrrribuibuibuibuibutttttababababable t le tooooo::::: le t le t le t Equity shareholders Non-controlling interests le tooooo::::: le t TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome ame ame ame ame attttttttttrrrrribuibuibuibuibutttttababababable t le t le t Equity shareholders Non-controlling interests EEEEEaaaaarrrrrnnnnniiiiinnnnngggggs ps ps ps ps peeeeer shr shr shr shr shaaaaarrrrreeeee: (F: (F: (F: (F: (Facacacacace ve ve ve ve vaaaaalllllue ue ue ue ue ````` 10 p 10 peeeeer shr shr shr shr shaaaaarrrrre)e)e)e)e) 10 p 10 p 10 p 1) 2) Diluted (amount in `) Basic (amount in `) XXXXX NNNNNotototototeeeee NNNNNooooo..... (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2020 ch 31, 2019 ch 31, 2020 27 28 29 30 31 32 33 34 35 36 12 37 38 168,512.58 4,905.49 ---------------------------------------------------------- 173,418.07 173,418.07 173,418.07 173,418.07 173,418.07 ---------------------------------------------------------- 76,203.44 5,210.29 (582.80) 39,325.57 4,201.04 4,204.40 41,664.00 ---------------------------------------------------------- 170,225.94 170,225.94 170,225.94 170,225.94 170,225.94 ---------------------------------------------------------- 3,192.13 3,192.13 3,192.13 3,192.13 3,192.13 68.72 ---------------------------------------------------------- 3,123.41 3,123.41 3,123.41 3,123.41 3,123.41 774.67 144.15 31.76 ---------------------------------------------------------- 2,172.83 2,172.83 2,172.83 2,172.83 2,172.83 ---------------------------------------------------------- 340.22 (69.11) 2,586.30 (38.29) (991.80) 346.57 ---------------------------------------------------------- 2,173.90 2,173.90 2,173.90 2,173.90 2,173.90 ---------------------------------------------------------- 4,346.73 4,346.73 4,346.73 4,346.73 4,346.73 ---------------------------------------------------------- 2,156.44 16.39 2,047.10 126.80 4,203.55 4,203.55 4,203.55 4,203.55 4,203.55 143.18 143.18 143.18 143.18 143.18 9.95 9.95 175,749.78 3,392.82 ---------------------------------------------------------- 179,142.60 179,142.60 179,142.60 179,142.60 179,142.60 ---------------------------------------------------------- 76,220.57 12,954.77 (1,841.00) 36,000.15 3,037.30 2,589.48 43,609.52 ---------------------------------------------------------- 172,570.78 172,570.78 172,570.78 172,570.78 172,570.78 ---------------------------------------------------------- 6,571.82 6,571.82 6,571.82 6,571.82 6,571.82 (1,722.12) ---------------------------------------------------------- 8,293.94 8,293.94 8,293.94 8,293.94 8,293.94 1,278.10 111.90 193.01 ---------------------------------------------------------- 6,710.93 6,710.93 6,710.93 6,710.93 6,710.93 ---------------------------------------------------------- 222.67 (71.93) 1,334.88 (12.67) - - ---------------------------------------------------------- 1,472.95 1,472.95 1,472.95 1,472.95 1,472.95 ---------------------------------------------------------- 8,183.88 8,183.88 8,183.88 8,183.88 8,183.88 ---------------------------------------------------------- 6,728.02 (17.10) 1,372.02 100.94 8,100.04 8,100.04 8,100.04 8,100.04 8,100.04 83.84 83.84 83.84 83.84 83.84 31.06 31.06 Summary of Significant Accounting Policies The accompanying notes form an integral part of these consolidated financial statements As per our Report of even date attached FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co..... a & Co a & Co a & Co CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss Firm’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Ag k Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) k Ag Partner Membership Number 073696 3 Place of Signature: New Delhi Date: July 28, 2020 (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (Ka(Kashshshshshmmmmmiiiiir Si (Ka(Ka r Si r Si r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) (Ka r Si Chief Financial Officer Place of Signature: Gurugram Date: July 28, 2020 FFFFFooooor & o r & on bn bn bn bn behehehehehaaaaalllllf of B r & o r & o f of B f of B f of Boooooaaaaarrrrrd of Di d of Di d of Di d of Dirrrrreeeeectctctctctooooors of P rs of Peaeaeaeaearrrrrl Glo rs of P rs of P l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd r & o f of B d of Di rs of P l Glo (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 96 Pearl Global Industries Limited Annual Report 2019-20 Consolidated Statement of changes in equity for the year ended March 31, 2020 . . . . . 9 9 9 9 9 3 3 3 3 3 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 2 2 2 2 2 , , , , , - . . . . . 9 9 9 9 9 3 3 3 3 3 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 2 2 2 2 2 , , , , , - . . . . . 9 9 9 9 9 3 3 3 3 3 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 2 2 2 2 2 , , , , , ) d e t a t s e s i w r e h t o s s e l n u , h k a L ` n i t n u o m A ( lllll aaaaa t t t t t o o o o o TTTTT yyyyy t t t t t i i i i i uuuuu q q q q q E E E E E ggggg nnnnn iiiii lllll lllll ooooo rrrrr ttttt nnnnn ooooo ccccc yyyyy t t t t t i i i i i uuuuu q q q q q E E E E E nnnnn o o o o o i i i i i ttttt aaaaa lllll a a a a a s s s s s nnnnn aaaaa rrrrr TTTTT h h h h h s s s s s aaaaa C C C C C f f f f f o o o o o n n n n n o o o o o i i i i i ttttt rrrrr ooooo PPPPP rrrrr e e e e e h h h h h t t t t t o o o o o h h h h h ggggg u u u u u o o o o o rrrrr hhhhh ttttt ----- nnnnn ooooo NNNNN rrrrr e e e e e h h h h h ttttt O O O O O l l l l l aaaaa t t t t t o o o o o TTTTT yyyyy c c c c c n n n n n eeeee rrrrr rrrrr uuuuu CCCCC eeeee v v v v v i i i i i t t t t t c c c c c e e e e e f f f f f f f f f f EEEEE ttttt nnnnn e e e e e m m m m m ttttt s s s s s e e e e e vvvvv nnnnn i i i i i n n n n n i i i i i e e e e e ggggg nnnnn aaaaa hhhhh CCCCC ddddd e e e e e n n n n n iiiii aaaaa t t t t t e e e e e RRRRR sssss ggggg nnnnn iiiii nnnnn rrrrr aaaaa EEEEE nnnnn o o o o o i i i i i ttttt aaaaa mmmmm aaaaa ggggg lllll aaaaa mmmmm AAAAA lllll aaaaa t t t t t i i i i i ppppp aaaaa CCCCC eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR nnnnn o o o o o i i i i i t t t t t p p p p p mmmmm e e e e e d d d d d eeeee RRRRR yyyyy t t t t t i i i i i rrrrr u u u u u c c c c c eeeee SSSSS mmmmm u u u u u i i i i i mmmmm eeeee rrrrr PPPPP lllll aaaaa rrrrr e e e e e n n n n n eeeee GGGGG eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR e e e e e m m m m m ooooo c c c c c n n n n n i i i i i e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm ooooo c c c c c f f f f f o o o o o r r r r r e e e e e h h h h h t t t t t o o o o o f f f f f o o o o o s s s s s mmmmm eeeee ttttt IIIII sssss uuuuu lllll p p p p p r r r r r uuuuu S S S S S & & & & & e e e e e vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR r a e y e h t g n i r u d s e g n a h C 9 9 9 9 9 1 1 1 1 1 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s A A A A A r a e y e h t g n i r u d s e g n a h C 0 0 0 0 0 2 2 2 2 2 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s A A A A A 8 8 8 8 8 1 1 1 1 1 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 0 0 0 0 0 l l l l l i i i i i rrrrr ppppp A A A A A t t t t t a a a a a s s s s s A A A A A lllll aaaaa t t t t t i i i i i ppppp aaaaa C C C C C e e e e e rrrrr aaaaa h h h h h S S S S S y y y y y t t t t t i i i i i uuuuu q q q q q E E E E E ..... AAAAA yyyyy t t t t t i i i i i uuuuu q q q q q E E E E E r r r r r e e e e e h h h h h ttttt OOOOO . . . . . B B B B B s s s s s r r r r r aaaaa lllll u u u u u c c c c c i i i i i ttttt rrrrr aaaaa PPPPP eeeee ggggg ddddd eeeee H H H H H w w w w w o o o o o l l l l l FFFFF e e e e e m m m m m ooooo c c c c c n n n n n i i i i i e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm ooooo ccccc ) ) ) ) ) 8 8 8 8 8 3 3 3 3 3 . . . . . 4 4 4 4 4 5 5 5 5 5 ( ( ( ( ( 2 2 2 2 2 1 1 1 1 1 . . . . . 0 0 0 0 0 7 7 7 7 7 5 5 5 5 5 , , , , , 4 4 4 4 4 1 1 1 1 1 5 5 5 5 5 9 9 9 9 9 . . . . . 5 5 5 5 5 2 2 2 2 2 6 6 6 6 6 0 0 0 0 0 9 9 9 9 9 . . . . . 3 3 3 3 3 0 0 0 0 0 1 1 1 1 1 , , , , , 7 7 7 7 7 1 1 1 1 1 6 6 6 6 6 3 3 3 3 3 . . . . . 4 4 4 4 4 0 0 0 0 0 2 2 2 2 2 , , , , , 4 4 4 4 4 8 8 8 8 8 1 1 1 1 1 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s a a a a a e e e e e c c c c c n n n n n aaaaa lllll aaaaa BBBBB ttttt s s s s s e e e e e rrrrr eeeee ttttt nnnnn iiiii 8 8 8 8 8 0 0 0 0 0 . . . . . 2 2 2 2 2 1 1 1 1 1 3 3 3 3 3 , , , , , 8 8 8 8 8 3 3 3 3 3 0 0 0 0 0 1 1 1 1 1 . . . . . 5 5 5 5 5 6 6 6 6 6 9 9 9 9 9 7 7 7 7 7 9 9 9 9 9 . . . . . 6 6 6 6 6 4 4 4 4 4 3 3 3 3 3 , , , , , 7 7 7 7 7 3 3 3 3 3 ----- 6 6 6 6 6 7 7 7 7 7 . . . . . 9 9 9 9 9 4 4 4 4 4 1 1 1 1 1 2 2 2 2 2 9 9 9 9 9 . . . . . 0 0 0 0 0 1 1 1 1 1 7 7 7 7 7 , , , , , 6 6 6 6 6 0 0 0 0 0 2 2 2 2 2 . . . . . 3 3 3 3 3 2 2 2 2 2 3 3 3 3 3 , , , , , 1 1 1 1 1 8 8 8 8 8 8 8 8 8 8 . . . . . 3 3 3 3 3 8 8 8 8 8 1 1 1 1 1 , , , , , 8 8 8 8 8 ) ) ) ) ) 8 8 8 8 8 2 2 2 2 2 . . . . . 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 ( ( ( ( ( ) ) ) ) ) 6 6 6 6 6 0 0 0 0 0 . . . . . 9 9 9 9 9 8 8 8 8 8 ( ( ( ( ( 2 2 2 2 2 3 3 3 3 3 . . . . . 4 4 4 4 4 0 0 0 0 0 1 1 1 1 1 ) ) ) ) ) 0 0 0 0 0 1 1 1 1 1 . . . . . 7 7 7 7 7 1 1 1 1 1 ( ( ( ( ( ----- 4 4 4 4 4 9 9 9 9 9 . . . . . 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 6 6 6 6 6 1 1 1 1 1 . . . . . 8 8 8 8 8 8 8 8 8 8 1 1 1 1 1 - ----- ) 2 3 . 4 0 1 ( 2 2 2 2 2 0 0 0 0 0 . . . . . 8 8 8 8 8 2 2 2 2 2 7 7 7 7 7 , , , , , 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 . . . . . 9 9 9 9 9 4 4 4 4 4 1 1 1 1 1 6 6 6 6 6 2 2 2 2 2 . . . . . 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , 1 1 1 1 1 2 2 2 2 2 7 7 7 7 7 . . . . . 5 5 5 5 5 9 9 9 9 9 9 9 9 9 9 , , , , , 7 7 7 7 7 ) ) ) ) ) 8 8 8 8 8 2 2 2 2 2 . . . . . 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 ( ( ( ( ( ) ) ) ) ) 6 6 6 6 6 0 0 0 0 0 . . . . . 9 9 9 9 9 8 8 8 8 8 ( ( ( ( ( - - - eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR 4 4 4 4 4 0 0 0 0 0 . . . . . 2 2 2 2 2 0 0 0 0 0 8 8 8 8 8 ----- ----- 3 9 . 4 3 2 , 1 3 3 3 3 3 9 9 9 9 9 . . . . . 4 4 4 4 4 3 3 3 3 3 2 2 2 2 2 , , , , , 1 1 1 1 1 1 1 1 1 1 6 6 6 6 6 . . . . . 3 3 3 3 3 7 7 7 7 7 9 9 9 9 9 , , , , , 5 5 5 5 5 4 4 4 4 4 6 6 6 6 6 2 2 2 2 2 . . . . . 3 3 3 3 3 5 5 5 5 5 1 1 1 1 1 , , , , , 1 1 1 1 1 5 5 5 5 5 3 3 3 3 3 . . . . . 0 0 0 0 0 2 2 2 2 2 8 8 8 8 8 , , , , , 4 4 4 4 4 4 4 4 4 4 6 6 6 6 6 9 9 9 9 9 . . . . . 6 6 6 6 6 3 3 3 3 3 0 0 0 0 0 , , , , , 2 2 2 2 2 2 2 2 2 2 8 8 8 8 8 . . . . . 2 2 2 2 2 7 7 7 7 7 1 1 1 1 1 , , , , , 2 2 2 2 2 ) ) ) ) ) 6 6 6 6 6 3 3 3 3 3 . . . . . 9 9 9 9 9 4 4 4 4 4 3 3 3 3 3 ( ( ( ( ( 1 1 1 1 1 3 3 3 3 3 . . . . . 4 4 4 4 4 4 4 4 4 4 1 1 1 1 1 9 9 9 9 9 5 5 5 5 5 . . . . . 9 9 9 9 9 2 2 2 2 2 0 0 0 0 0 , , , , , 2 2 2 2 2 7 7 7 7 7 3 3 3 3 3 . . . . . 7 7 7 7 7 9 9 9 9 9 9 9 9 9 9 , , , , , 3 3 3 3 3 ) ) ) ) ) 2 2 2 2 2 9 9 9 9 9 ) ) ) ) ) 9 9 9 9 9 5 5 5 5 5 . . . . . . . . . . 9 9 9 9 9 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 ( ( ( ( ( ----- ----- 9 9 9 9 9 3 3 3 3 3 . . . . . 6 6 6 6 6 1 1 1 1 1 0 0 0 0 0 8 8 8 8 8 . . . . . 6 6 6 6 6 2 2 2 2 2 1 1 1 1 1 8 8 8 8 8 1 1 1 1 1 . . . . . 3 3 3 3 3 4 4 4 4 4 1 1 1 1 1 - - 4 4 4 4 4 4 4 4 4 4 . . . . . 6 6 6 6 6 5 5 5 5 5 1 1 1 1 1 , , , , , 2 2 2 2 2 ) ) ) ) ) 6 6 6 6 6 3 3 3 3 3 . . . . . 9 9 9 9 9 4 4 4 4 4 3 3 3 3 3 ( ( ( ( ( 1 1 1 1 1 3 3 3 3 3 . . . . . 4 4 4 4 4 4 4 4 4 4 1 1 1 1 1 9 9 9 9 9 7 7 7 7 7 . . . . . 2 2 2 2 2 0 0 0 0 0 9 9 9 9 9 , , , , , 1 1 1 1 1 8 8 8 8 8 1 1 1 1 1 . . . . . 4 4 4 4 4 5 5 5 5 5 8 8 8 8 8 , , , , , 3 3 3 3 3 ) ) ) ) ) 2 2 2 2 2 9 9 9 9 9 ) ) ) ) ) 9 9 9 9 9 5 5 5 5 5 . . . . . . . . . . 9 9 9 9 9 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 ( ( ( ( ( - - - - - - - 1 3 . 6 8 5 , 2 1 1 1 1 1 3 3 3 3 3 . . . . . 6 6 6 6 6 8 8 8 8 8 5 5 5 5 5 , , , , , 2 2 2 2 2 ) 3 2 . 5 4 6 ( ) ) ) ) ) 3 3 3 3 3 2 2 2 2 2 . . . . . 5 5 5 5 5 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( ----- - - - - ----- - - ----- - - - - - - - ) 7 6 . 2 1 ( ) ) ) ) ) 7 7 7 7 7 6 6 6 6 6 . . . . . 2 2 2 2 2 1 1 1 1 1 ( ( ( ( ( ) ) ) ) ) 5 5 5 5 5 0 0 0 0 0 . . . . . 7 7 7 7 7 6 6 6 6 6 ( ( ( ( ( - - - - - ) 9 2 . 8 3 ( ) ) ) ) ) 9 9 9 9 9 2 2 2 2 2 . . . . . 8 8 8 8 8 3 3 3 3 3 ( ( ( ( ( ) 2 3 . 4 0 1 ( 2 0 . 8 2 7 , 6 6 7 . 9 4 1 6 6 6 6 6 4 4 4 4 4 . . . . . 3 3 3 3 3 7 7 7 7 7 7 7 7 7 7 , , , , , 6 6 6 6 6 ) ) ) ) ) 8 8 8 8 8 2 2 2 2 2 . . . . . 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 ( ( ( ( ( ) ) ) ) ) 6 6 6 6 6 0 0 0 0 0 . . . . . 9 9 9 9 9 8 8 8 8 8 ( ( ( ( ( - - - - ----- - - - - - - ----- - - 0 0 0 0 0 0 0 0 0 0 . . . . . 5 5 5 5 5 9 9 9 9 9 eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR - - - - ----- - - - - - - ----- - - - 4 4 . 6 5 1 , 2 ) 6 3 . 9 4 3 ( 1 3 . 4 4 1 9 9 9 9 9 3 3 3 3 3 . . . . . 1 1 1 1 1 5 5 5 5 5 9 9 9 9 9 , , , , , 1 1 1 1 1 ) 2 9 . 9 4 6 ( ) 9 5 . 3 3 1 ( - - - - ----- - - - - - - ----- - - - - - - ----- - - - - - - ----- - - 3 3 3 3 3 2 2 2 2 2 . . . . . 1 1 1 1 1 2 2 2 2 2 8 8 8 8 8 , , , , , 0 0 0 0 0 2 2 2 2 2 5 5 5 5 5 9 9 9 9 9 . . . . . 5 5 5 5 5 2 2 2 2 2 6 6 6 6 6 0 0 0 0 0 0 0 0 0 0 . . . . . 5 5 5 5 5 9 9 9 9 9 0 0 0 0 0 9 9 9 9 9 . . . . . 3 3 3 3 3 0 0 0 0 0 1 1 1 1 1 , , , , , 7 7 7 7 7 1 1 1 1 1 6 6 6 6 6 3 3 3 3 3 . . . . . 4 4 4 4 4 0 0 0 0 0 2 2 2 2 2 , , , , , 4 4 4 4 4 7 7 7 7 7 4 4 4 4 4 . . . . . 7 7 7 7 7 8 8 8 8 8 1 1 1 1 1 , , , , , 9 9 9 9 9 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 . . . . . 6 6 6 6 6 9 9 9 9 9 2 2 2 2 2 , , , , , 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 . . . . . 1 1 1 1 1 9 9 9 9 9 8 8 8 8 8 , , , , , 7 7 7 7 7 4 4 4 4 4 8 8 8 8 8 2 2 2 2 2 . . . . . 3 3 3 3 3 2 2 2 2 2 6 6 6 6 6 , , , , , 4 4 4 4 4 ) ) ) ) ) 3 3 3 3 3 2 2 2 2 2 . . . . . 5 5 5 5 5 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( ) ) ) ) ) 4 4 4 4 4 3 3 3 3 3 . . . . . 5 5 5 5 5 0 0 0 0 0 1 1 1 1 1 ( ( ( ( ( 0 0 0 0 0 1 1 1 1 1 . . . . . 9 9 9 9 9 8 8 8 8 8 9 9 9 9 9 , , , , , 1 1 1 1 1 2 2 2 2 2 5 5 5 5 5 9 9 9 9 9 . . . . . 5 5 5 5 5 2 2 2 2 2 6 6 6 6 6 0 0 0 0 0 0 0 0 0 0 . . . . . 5 5 5 5 5 9 9 9 9 9 0 0 0 0 0 9 9 9 9 9 . . . . . 3 3 3 3 3 0 0 0 0 0 1 1 1 1 1 , , , , , 7 7 7 7 7 1 1 1 1 1 6 6 6 6 6 3 3 3 3 3 . . . . . 4 4 4 4 4 0 0 0 0 0 2 2 2 2 2 , , , , , 4 4 4 4 4 t c e f f e x a t f o t e n , n a l p t i f e n e b e h t f o t n e m e r u s a e m e R t s e r e t n i g n i l l o r t n o c - n o n a y b n o i t c e j n i l a t i p a C r a e y e h t r o f ) s s o l ( / t i f o r P e m o c n I e v i s n e h e r p m o C r e h t O rrrrr a a a a a e e e e e y y y y y e e e e e h h h h h t t t t t r r r r r o o o o o f f f f f e e e e e m m m m m ooooo c c c c c n n n n n I I I I I e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm o o o o o C C C C C l l l l l aaaaa t t t t t o o o o o TTTTT s e s a e L : 6 1 1 S A d n I f o n o i t a t n e m e l p m I r a e y e h t r o f ) s s o l ( / t i f o r P 9 9 9 9 9 1 1 1 1 1 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s a a a a a e e e e e c c c c c n n n n n aaaaa lllll aaaaa BBBBB x a T n o i t u b i r t s i D d n e d i v i D d n e d i v i D t c e f f e x a t f o t e n , n a l p t i f e n e b e h t f o t n e m e r u s a e m e R e m o c n I e v i s n e h e r p m o C r e h t O rrrrr a a a a a e e e e e y y y y y e e e e e h h h h h t t t t t r r r r r o o o o o f f f f f e e e e e m m m m m ooooo c c c c c n n n n n I I I I I e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm o o o o o C C C C C l l l l l aaaaa t t t t t o o o o o TTTTT 0 0 0 0 0 2 2 2 2 2 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s a a a a a e e e e e c c c c c n n n n n aaaaa lllll aaaaa BBBBB x a T n o i t u b i r t s i D d n e d i v i D d n e d i v i D ddddd eeeee t t t t t i i i i i mmmmm iiiii L L L L L s s s s s e e e e e i i i i i rrrrr ttttt sssss uuuuu d d d d d n n n n n I I I I I l l l l l aaaaa bbbbb o o o o o l l l l l G G G G G l l l l l rrrrr a a a a a e e e e e P P P P P f f f f f o o o o o s s s s s r r r r r ooooo t t t t t c c c c c eeeee rrrrr i i i i i D D D D D f f f f f o o o o o d d d d d rrrrr aaaaa ooooo B B B B B f f f f f o o o o o f f f f f lllll aaaaa h h h h h e e e e e b b b b b n n n n n o o o o o & & & & & r r r r r ooooo FFFFF n a m r i a h C ))))) hhhhh t t t t t e e e e e S S S S S k k k k k aaaaa ppppp eeeee eeeee D D D D D ( ( ( ( ( 1 2 0 3 0 0 0 0 N D I y r a t e r c e S y n a p m o C 0 7 3 8 - S C A . o N . M ))))) lllll aaaaa wwwww rrrrr aaaaa hhhhh b b b b b a a a a a S S S S S p p p p p eeeee e e e e e d d d d d n n n n n aaaaa S S S S S ( ( ( ( ( ) ) ) ) ) r r r r r u u u u u o o o o o h h h h h ttttt aaaaa R R R R R h h h h h ggggg nnnnn i i i i i S S S S S r r r r r iiiii mmmmm h h h h h s s s s s a a a a a K K K K K ( ( ( ( ( r e c i f f O l a i c n a n F f e i i h C r o t c e r i D g n i g a n a M 4 4 0 3 0 0 0 0 N D I ))))) hhhhh t t t t t e e e e e S S S S S t t t t t i i i i i kkkkk lllll uuuuu P P P P P ( ( ( ( ( m a r g u r u G : e r u t a n g i S f o e c a l P 0 2 0 2 , 8 2 y l u J : e t a D d e h c a t t a e t a d n e v e f o t r o p e R r u o r e p s A sssss ttttt nnnnn aaaaa ttttt nnnnn u u u u u o o o o o ccccc ccccc A A A A A d d d d d eeeee rrrrr eeeee ttttt rrrrr aaaaa hhhhh CCCCC ..... o o o o o C C C C C & & & & & a a a a a t t t t t p p p p p uuuuu G G G G G . . . . . . . . . . R R R R R B B B B B r r r r r ooooo FFFFF N 2 5 3 8 0 0 r e b m u N n o i t a r t s i g e R s ’ m r i F 6 9 6 3 7 0 r e b m u N p i h s r e b m e M ))))) lllll aaaaa wwwww rrrrr aaaaa g g g g g A A A A A k k k k k aaaaa ppppp eeeee eeeee D D D D D ( ( ( ( ( r e n t r a P i h l e D w e N : e r u t a n g i S f o e c a l P 0 2 0 2 , 8 2 y l u J : e t a D s t n e m e t a t s l a i c n a n i f d e t a d i l o s n o c e s e h t f o t r a p l a r g e t n i n a m r o f s e t o n g n i y n a p m o c c a e h T s e i c i l o P g n i t n u o c c A t n a c i f i n g i S f o y r a m m u S Pearl Global Industries Limited Annual Report 2019-20 97 Consolidated Statement of Cash Flow for the year ended March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2020 ch 31, 2019 ch 31, 2020 CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Opm Opm Opm Opm Opeeeeerrrrraaaaatttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies PPPPPrrrrrofit b ofit befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmms as as as as and tnd tnd tnd tnd taaaaaxxxxx ofit b ofit b ofit b AAAAAdjdjdjdjdjuuuuussssstttttmememememennnnnttttts fos fos fos fos forrrrr::::: Depreciation and amortization Interest Paid and other borrowing cost Unwinding of discount on security deposit Sundry balances Written back Grant Amortised during the year Provision for Doubtful Debt Written Back Amortisation of deferred Rental Income Unwinding of discount on security deposits Profit on sale of current investment - Mutual Fund Rental Income Interest Income Fair value loss (gain) on financial assets measured at fair value through profit and loss Amortisation of deferred asset - security deposit paid Fair value loss (gain) on financial assets measured at fair value through OCI Re-measurement gains/ (losses) on defined benefit plans Foreign exchange translation reserve Loss / (Profit) on mark to market forward contracts Allowance for bad and doubtful debts Bad debts written off ofit Befoefoefoefoeforrrrre We We We We Wooooorrrrrkkkkkiiiiinnnnng Cg Cg Cg Cg Caaaaapppppitititititaaaaal Cl Cl Cl Cl Chhhhhaaaaannnnngggggeseseseses ofit B ofit B OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng Pg Pg Pg Pg Prrrrrofit B ofit B MMMMMovovovovoveeeeemememememennnnnt It It It It In Wn Wn Wn Wn Wooooorrrrrkkkkkiiiiinnnnng Cg Cg Cg Cg Caaaaapppppitititititaaaaalllll::::: (Increase)/Decrease in Trade Receivables (Increase)/Decrease in other non-current financial assets (Increase)/Decrease in other current financial assets (Increase)/Decrease in other non-current assets (Increase)/Decrease in other current assets (Increase)/Decrease in Inventories Increase/(Decrease) in Trade Payables Increase/(Decrease) in other non-current financial liabilities Increase/(Decrease) in other current financial liabilities Increase/(Decrease) in non-current provisions Increase/(Decrease) in current provisions Increase/(Decrease) in other non-current liabilities Increase/(Decrease) in other current liabilities CCCCCaaaaash Gsh Gsh Gsh Gsh Geeeeenenenenenerrrrraaaaattttteeeeed Fd Fd Fd Fd Frrrrrooooom Opm Opm Opm Opm Opeeeeerrrrraaaaatttttioioioioionnnnnsssss Tax paid on dividend Direct Tax paid (Net of Refunds) CCCCCaaaaash flo sh flo sh flo sh flow bw bw bw bw befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss sh flo Exceptional items ) Opeeeeerrrrraaaaatttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies ) Op sh Innnnnflofloflofloflow Fw Fw Fw Fw Frrrrrooooom/(m/(m/(m/(m/(UUUUUsesesesesed Id Id Id Id Innnnn) Op ) Op sh I NNNNNet Cet Cet Cet Cet Caaaaash I sh I ) Op sh I ( A ) ( A ) ( A ) ( A ) ( A ) 3,123.41 8,293.93 4,204.40 2,727.05 30.32 (37.34) (1.00) - (32.08) 157.32 (73.79) (980.53) (1,142.49) (29.41) (154.15) 38.29 340.22 3,740.59 462.80 47.92 26.31 ---------------------------------------------------------- 12,447.84 12,447.84 12,447.84 12,447.84 12,447.84 61.16 (278.63) 332.68 786.53 (2,594.06) (2,755.16) 37.54 57.05 268.62 (32.87) (13.27) (310.72) 3.94 ---------------------------------------------------------- 8,010.64 8,010.64 8,010.64 8,010.64 8,010.64 (133.59) (1,574.14) ---------------------------------------------------------- 6,302.92 6,302.92 6,302.92 6,302.92 6,302.92 68.72 ---------------------------------------------------------- 6,371.64 6,371.64 6,371.64 6,371.64 6,371.64 ---------------------------------------------------------- 2,589.48 2,845.56 26.39 (55.17) (1.00) (37.87) (31.67) (39.87) (218.20) (814.53) (907.06) 133.64 42.22 (12.67) 222.67 1,160.80 (247.24) 391.92 103.78 ---------------------------------------------------------- 13,445.12 13,445.12 13,445.12 13,445.12 13,445.12 (8,439.11) 876.74 (384.94) 1,210.31 683.72 (2,628.26) 7,236.34 37.07 (49.27) 232.85 20.58 (275.54) 103.46 ---------------------------------------------------------- 12,069.06 12,069.06 12,069.06 12,069.06 12,069.06 (89.06) (2,779.47) ---------------------------------------------------------- 9,200.53 9,200.53 9,200.53 9,200.53 9,200.53 (1,722.12) ---------------------------------------------------------- 7,478.41 7,478.41 7,478.41 7,478.41 7,478.41 ---------------------------------------------------------- 98 Pearl Global Industries Limited Annual Report 2019-20 Consolidated Statement of Cash Flow for the year ended March 31, 2020 (Contd.) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2020 ch 31, 2019 ch 31, 2020 CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Im Im Im Im Innnnnvvvvvesesesesestttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies Purchase of property, plant and equipment(including ROU, net of Lease Liabilities) Sale proceeds of property, plant and equipment (Increase)/Decrease in Capital work in progress Purchase of Investment Properties Purchase of Intangible assets Purchase of goodwill (Increase)/decrease in capital advances Increase/(decrease) in capital creditor (Increase)/Decrease in non-current Investments (Increase)/Decrease in current Investments (Increase)/Decrease in non-current Loans (Increase)/Decrease in current Loans (Increase)/Decrease in bank deposit Interest Income Rental Income NNNNNet Cet Cet Cet Cet Caaaaash Fsh Fsh Fsh Fsh Frrrrrooooom/ (m/ (m/ (m/ (m/ (UUUUUsesesesesed Id Id Id Id Innnnn) I) I) I) I) Innnnnvvvvvesesesesestttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies ( B ) ( B ) ( B ) ( B ) ( B ) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Fm Fm Fm Fm Fiiiiinnnnnaaaaancincincincincinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies Increase/ (Decrease) in Long Term Borrowings Increase/ (Decrease) in Non Cash INDAS Impact Borrowings Government grant received Increase/ (Decrease) in Short Term Borrowings Increase/ (Decrease) in unpaid dividend account Dividend Paid Interest paid (net) sh innnnnflofloflofloflow frw frw frw frw frooooom/(m/(m/(m/(m/(uuuuusesesesesed id id id id innnnn) F) F) F) F) Fiiiiinnnnnaaaaancincincincincinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies sh i sh i NNNNNet cet cet cet cet caaaaash i sh i ( C ) ( C ) ( C ) ( C ) ( C ) sh Equuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C) A+B+C) A+B+C) sh Eq sh Eq se) In Cn Cn Cn Cn Caaaaash Ash Ash Ash Ash And Cnd Cnd Cnd Cnd Caaaaash Eq se) I se) I NNNNNet Iet Iet Iet Iet Incncncncncrrrrreaeaeaeaease (Dse (Dse (Dse (Dse (Deeeeecccccrrrrreaeaeaeaease) I A+B+C) A+B+C) sh Eq se) I Opening Balance of Cash and Cash Equivalents sh Equuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote Ne Ne Ne Ne Nooooo. 17) . 17) . 17) sh Eq TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaash Ash Ash Ash Ash And Cnd Cnd Cnd Cnd Caaaaash Eq sh Eq . 17) . 17) sh Eq sh Equuuuuivivivivivaaaaalelelelelennnnntttttsssss sh Eq s Of Caaaaash Ash Ash Ash Ash And Cnd Cnd Cnd Cnd Caaaaash Eq sh Eq s Of C CoCoCoCoCommmmmpppppooooonenenenenennnnnttttts Of C s Of C sh Eq s Of C Cash on hand With banks - on current account and deposits with banks - on unpaid dividend account sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote Ne Ne Ne Ne Nooooo. 17) . 17) . 17) sh esh e sh e sh and Cnd Cnd Cnd Cnd Caaaaash e sh ash a sh a TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaash a . 17) . 17) Summary of Significant Accounting Policies The accompanying notes form an integral part of these consolidated financial statements (7,013.59) 341.33 (2,831.68) (49.12) (17.57) - (50.76) (819.04) 191.79 (589.48) (151.65) (66.52) 492.53 1,130.72 980.53 ---------------------------------------------------------- (8,452.51) (8,452.51) (8,452.51) (8,452.51) (8,452.51) ---------------------------------------------------------- 2,965.24 (349.37) - 2,229.26 (30.32) (644.90) (2,714.25) ---------------------------------------------------------- 1,455.64 1,455.64 1,455.64 1,455.64 1,455.64 ---------------------------------------------------------- (625.23) (625.23) (625.23) (625.23) (625.23) 9,434.12 ---------------------------------------------------------- 8,808.89 8,808.89 8,808.89 8,808.89 8,808.89 ---------------------------------------------------------- 606.60 8,062.59 139.70 ---------------------------------------------------------- 8,808.89 8,808.89 8,808.89 8,808.89 8,808.89 ---------------------------------------------------------- 3 (8,930.08) 1,916.16 61.80 (1.29) (27.65) (79.82) (21.20) 800.73 (166.39) 717.18 (189.57) (1,329.73) (346.99) 923.00 814.53 ---------------------------------------------------------- (5,859.32) (5,859.32) (5,859.32) (5,859.32) (5,859.32) ---------------------------------------------------------- (381.97) (17.49) 144.61 2,131.64 - (430.97) (2,856.62) ---------------------------------------------------------- (1,410.79) (1,410.79) (1,410.79) (1,410.79) (1,410.79) ---------------------------------------------------------- 208.28 208.28 208.28 208.28 208.28 9,225.83 ---------------------------------------------------------- 9,434.13 9,434.13 9,434.13 9,434.13 9,434.13 ---------------------------------------------------------- 1,327.67 7,156.93 949.52 ---------------------------------------------------------- 9,434.13 9,434.13 9,434.13 9,434.13 9,434.13 ---------------------------------------------------------- As per our Report of even date attached FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss Firm’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Agaaaaarrrrrwwwwwaaaaalllll))))) k Agk Ag Partner Membership Number 073696 Place of Signature: New Delhi Date: July 28, 2020 FFFFFooooor & o r & o r & o r & on bn bn bn bn behehehehehaaaaalllllf of B f of B f of B f of Boooooaaaaarrrrrd of Di d of Di d of Di d of Dirrrrreeeeectctctctctooooors of P rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd r & o f of B d of Di rs of P l Glo (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si (Ka(Kashshshshshmmmmmiiiiir Si r Si (Ka(Ka r Si (Ka Chief Financial Officer Place of Signature: Gurugram Date: July 28, 2020 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 Pearl Global Industries Limited Annual Report 2019-20 99 Notes to consolidated financial statements for the year ended March 31, 2020 E 1: CORRRRRPPPPPOOOOORRRRRAAAAATTTTTE INE INE INE INE INFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN E 1: CO NONONONONOTTTTTE 1: CO E 1: CO E 1: CO Pearl Global Industries Limited is a public limited Group domiciled in India and incorporated under the provisions of the Companies Act,1956. The Group along with its subsidiaries (collectively referred to as “the Group”), is primarily engaged in manufacturing, sourcing, distribution and export of ready to wear apparels through its domestic and global facilities and operations. The shares of the Group are listed on BSE Limited and National Stock Exchange of India Limited in India. The Consolidated financial statements were authorised for issue in accordance with a resolution of the Board of Directors on July 28, 2020. The Group, its subsidiaries (jointly referred to as the ‘Group’ herein under) considered in these consolidated financial statements are: me of Grouououououppppp me of Gr me of Gr NNNNNaaaaame of Gr me of Gr CouCouCouCouCounnnnntttttrrrrry ofy ofy ofy ofy of iiiiincncncncncooooorprprprprpooooorrrrraaaaatttttioioioioionnnnn l activivivivivitititititiesiesiesiesies l act l act PPPPPrrrrriiiiincincincincincipppppaaaaal act l act n (%) of eqqqqquuuuuititititity iy iy iy iy innnnnttttteeeeerrrrresesesesesttttt n (%) of e n (%) of e PPPPPooooorprprprprpooooorrrrrtttttioioioioion (%) of e n (%) of e As AAs AAs AAs AAs Attttt As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2019 ch 31, 2019 ch 31, 2020 ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid ubsid SSSSSubsid ubsid Pearl Apparel Fashions Limited India Pearl Global Kausal Vikas Limited India (Formally known as Pixel Industries Ltd) SBUYS E-Commerce Limited Pearl Global Far East Limited Pearl Global (HK) Limited Norp Knit Industries Limited India Hong Kong Hong Kong Bangladesh Trading of garments Skill development Online Trading of garments Trading of garments Trading of garments Manufacturing and trading of garments 100.00 100.00 100.00 100.00 100.00 99.99 100.00 100.00 - 100.00 100.00 99.99 E 2: BASSSSS IIIII S OS OS OS OS OF PF PF PF PF PRRRRR EEEEE PPPPPAAAAA RRRRR AAAAATTTTT IIIII OOOOO N AN AN AN AN ANNNNN DDDDD E 2: BA E 2: BA N ON ON ON ON OTTTTT E 2: BA E 2: BA MMMMMEEEEEAAAAASSSSSUUUUURRRRREEEEEMMMMMEEEEENNNNNTTTTT for the purpose of current non-current classification of assets and liabilities. t of Commmmmpppppllllliaiaiaiaiancncncncnceeeee : : : : : The Financial Statements are t of Co t of Co SSSSStttttaaaaattttteeeeemememememennnnnt of Co t of Co prepared on an accrual basis under historical cost Convention except for certain financial instruments which are measured at fair value. These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Companies Act, 2013, as applicable.The accounting policies are applied consistently to all the periods presented in the financial statements. Basis of Preparation and presentation: The financial statements are prepared under the historical cost convention except for certain financial assets and liabilities (including derivative financial instruments) that are measured at fair value or amortised cost.All assets and liabilities have been classified as current or noncurrent according to the Group’s operating cycle and other criteria set out in the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as twelve months Functional and Presentation Currency The financial statements are presented in ` and all values are rounded to the nearest lakh upto two decimal places except otherwise stated. Going Concern The board of directors have considered the financial position of the Group at 31st March 2020 and the projected cash flows and financial performance of the Group for at least twelve months from the date of approval of these financial statements as well as planned cost and cash improvement actions, and believe that the plan for sustained profitability remains on course. The board of directors have taken actions to ensure that appropriate long-term cash resources are in place at the date of signing the accounts to fund the Group’s operations. Basis of Consolidation:- The Consolidated Financial Statements have been prepared on the following basis:- i) The consolidation financial statements of the Group and its subsidiary companies have been prepared in accordance with the Ind AS 110 “Consolidated financial statements”, 100 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 on a line-by-line basis by adding together the book values of like items of assets, liabilities, income, and expenses, after eliminating intra-group balances and intra-group transactions resulting in unrealized profits or losses. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.(including considering the materiality impact) Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date when control ceases. ii) The difference of the cost to the Group of its investment in subsidiaries over its share in the equity of the investee Group as at the date of acquisition of stake is recognized in financial statements as Goodwill or Capital Reserve, as the case may be. iii) Non-controlling interests in the net assets of consolidated subsidiaries is identified and presented in the consolidated Balance Sheet separately within equity of the Group’s shareholders. Non-controlling interests in the net assets of consolidated subsidiaries consists of: - - The amount of equity attributable to Non-controlling interests at the date on which investment in a subsidiary is made; and The Non-controlling interests share of movements in equity since the date parent subsidiary relationship came into exitence. The profit and other comprehensive income attributable to Non- controlling interestsof subsidiaries are shown separately in the consolidated statement of profit and loss, consolidated statement of changes in equity and balance sheet respectively iv) The Consolidated Financial Statements are presented, to the extent possible, in the same format as adopted by the parent Group for its individual financial statements. TTTTThe effe he effe he effe ct of C ct of C ct of Chhhhhaaaaannnnnggggges ies ies ies ies in Fn Fn Fn Fn Fooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Re Re Re Re Raaaaattttteseseseses he effect of C he effe ct of C s of Fooooorrrrreigeigeigeigeignnnnn s of F n of Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeem em em em em ennnnnttttts of F s of F n of F iiiii))))) TTTTTrrrrraaaaannnnns ls ls ls ls laaaaattttti oi oi oi oi on of F n of F s of F n of F OpOpOpOpOpeeeeerrrrraaaaatttttioioioioionnnnnsssss - In view of Ind As-“21” ‘The effects of Changes in - - Foreign Exchange Rates’, the operations of all the foreign subsidiaries are identified as non integral operations of the Group in the current year and translated into Indian Rupee. The Assets and Liabilities of Foreign operations, including Goodwill/Capital Reserve arising on consolidation, are translated in Indian Rupee (INR) at foreign exchange rate at closing rate ruling as at the balance sheet date and the revenue and expenses of foreign operations are translated in Indian Rupee (INR) at yearly average currency exchange rate, of the respective years. Foreign exchange differences arising on translation of “Non-integral Foreign Operations” are recognized as, ‘foreign exchange translation reserve’ in balance sheet under the head items of other comprehensive income as items that will be reclassified subsequently to statement of profit and loss. sactioioioioionnnnnsssss sact sact iiiiiiiiii))))) FFFFFooooorrrrreigeigeigeigeign Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncy Ty Ty Ty Ty Trrrrraaaaannnnnsact sact - - Except in case of the parent Group, the sales made in foreign currencies are translated on exchange rate prevailing on the date of transaction. In case of the parent Group, the sales made in foreign currency are translated at an average monthly exchange rate which approximates the transaction date rate. Gain/Loss arising out of fluctuation in the exchange rate on settlement of the transaction is recognized in the Statement of Profit and Loss. - Other transactions in foreign currency are recognized on initial recognition at the exchange rate prevailing at the time of transaction. - Foreign Currency monetary items are reported using the closing rate as on balance sheet date. The resultant exchange gain/loss is dealt with in the Statement of Profit & Loss. t accccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrooooonounounounounouncncncncnceeeeemememememennnnnttttts ds ds ds ds daaaaattttteeeeed Jd Jd Jd Jd Juuuuuly 24, 2020 ly 24, 2020 ly 24, 2020 t ac RRRRReeeeeccccceeeeennnnnt ac t ac ly 24, 2020 ly 24, 2020 t ac y of Corprprprprpooooorrrrraaaaattttte Ae Ae Ae Ae Affffffffffaaaaaiiiiirs ars ars ars ars arrrrre ae ae ae ae as us us us us undendendendenderrrrr:-:-:-:-:- y of Co notnotnotnotnotifieifieifieifieified bd bd bd bd by My My My My Miiiiinnnnnisisisisistttttrrrrry of Co y of Co y of Co a)a)a)a)a) n of Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss n of F IIIIInd And And And And AS 1 PS 1 PS 1 PS 1 PS 1 Prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioion of F n of F n of F The term “Material” has been defined as: Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. Materiality depends on the nature or magnitude of information, or both. An entity assesses whether Pearl Global Industries Limited Annual Report 2019-20 101 Notes to consolidated financial statements for the year ended March 31, 2020 information, either individually or in combination with other information, is material in the context of its financial statements taken as a whole. Assessing whether information could reasonably be expected to influence decisions made by the primary users of a specific reporting entity‘s general purpose financial statements requires an entity to consider the characteristics of those users while also considering the entity‘s own circumstances. bbbbb))))) icies, Chhhhhaaaaannnnnggggges ies ies ies ies in An An An An Accccccccccououououounnnnntttttiiiiinnnnnggggg icies, C icies, C IIIIInd And And And And AS 8, AS 8, AS 8, AS 8, AS 8, Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg Pooooolllllicies, C icies, C EEEEEssssstttttiiiiimmmmmaaaaatttttes aes aes aes aes and End End End End Errrrrrrrrrooooorsrsrsrsrs The term Material”, used in this Standard shall have the same meaning as assigned to it in paragraph 7 of Ind AS 1. ccccc))))) s afttttteeeeer tr tr tr tr the Rhe Rhe Rhe Rhe Reeeeepppppooooorrrrrtttttiiiiinnnnng Pg Pg Pg Pg Peeeeerrrrrioioioioioddddd s af s af S 10 – Evvvvveeeeennnnnttttts af S 10 – E S 10 – E IIIIInd And And And And AS 10 – E s af S 10 – E If non-adjusting events after the reporting period are material, non-disclosure could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. Accordingly, an entity shall disclose the nature of the event and an estimate of its financial effect, or a statement that such an estimate cannot be made for each material category of non-adjusting event after the reporting period. ddddd))))) ies andndndndnd ies a ies a s, Connnnntttttiiiiinnnnngggggeeeeennnnnt Lt Lt Lt Lt Liabiabiabiabiabilililililititititities a s, Co s, Co S 37 – Prrrrrovovovovovisioisioisioisioisionnnnns, Co S 37 – P S 37 – P IIIIInd And And And And AS 37 – P ies a s, Co S 37 – P t Assetsetsetsetsetsssss t As t As CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt As t As A management or board decision to restructure taken before the end of the reporting period does not give rise to a constructive obligation at the end of the reporting period. If an entity starts to implement a restructuring plan, or announces its main features to those affected, only after the reporting period, disclosure is required under Ind AS 10 Events after the Reporting Period, if the restructuring is material and non-disclosure could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. e)e)e)e)e) S 116 – Leaeaeaeaeasessessessesses S 116 – L IIIIInd And And And And AS 116 – L S 116 – L S 116 – L Practical Expedient has been issued which permits lessees not to account for COVID related concessions as a lease modification. The practical expedient has been made applicable from accounting period starting from April 1, 2020. fffff ))))) s Combmbmbmbmbiiiiinnnnnaaaaatttttioioioioionnnnnsssss s Co S 103 – Buuuuusisisisisinesnesnesnesness Co s Co S 103 – B IIIIInd And And And And AS 103 – B S 103 – B s Co S 103 – B An entity shall determine whether a transaction or other event is a business combination by applying the definition in this Ind AS, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, the reporting entity shall account for the transaction or other event as an asset acquisition. Paragraphs B5–B12D provide guidance on identifying a business combination and the definition of a business. Certain other changes include definition of Business and three elements of business such as Input, Process, Output and changes in the Appendix to the IND AS 103. ggggg ))))) Certain other changes in IND AS 107 & 109 with respect to Hedge Accounting Disclosures, temporary exceptions from applying specific hedge accounting requirements and Transition for hedge accounting. Application of New Accounting Pronouncements The following Ind As pronouncements were applied by the Group during the year: a) b) Ind AS 116 Leases w.e.f April 1, 2019. Ind AS 12 Appendix C - Uncertainity over Income tax treatments c) Amendments to Ind AS 19 - Plan Amendment curtainment & settlement w.e.f April 1, 2019. E 3: SIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT AT AT AT AT ACCCCCCCCCCOOOOOUUUUUNNNNNTTTTTIIIIINNNNNG PG PG PG PG POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS E 3: SI E 3: SI NONONONONOTTTTTE 3: SI E 3: SI a)a)a)a)a) SigSigSigSigSignnnnnificificificificificaaaaannnnnt ac es andndndndnd es a s, estttttiiiiimmmmmaaaaatttttes a es a s, es t accccccououououounnnnntttttiiiiinnnnng jg jg jg jg judududududggggg eeeeemememememennnnnttttts, es s, es t ac t ac es a s, es t ac aaaaassssssssssuuuuummmmmptptptptptioioioioionnnnnsssss In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively. JJJJJudududududgggggeeeeemememememennnnntttttsssss Information about the judgements made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements as given below: • In respect of lease payments, determination whether arrangements contain a lease and determination of cancellable and non-cancellable tenure of leases (IND AS 116) 102 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 • Classification of financial assets: assessment of business model within which the assets are held and assessment of whether the contractual terms of the financial asset are solely payments of principal and interest on the principal amount outstanding • Useful lives of Property, plant and equipment and Intangible Assets Employee benefit plans Amortization of Government Grant • • • Determination of Provision of income taxes vis-à-vis anticipated tax issues and final tax outcomes of pending matters. nd estttttiiiiimmmmmaaaaatttttioioioioion un un un un uncncncncnceeeeerrrrrtttttaaaaaiiiiinnnnntttttiesiesiesiesies nd es nd es AsAsAsAsAssssssuuuuummmmmptptptptptioioioioionnnnns as as as as and es nd es Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment included in the following notes: • measurement of defined benefit obligations and planned assets: key actuarial assumptions. • • • • • recognition of deferred tax assets: availability of future taxable profit against which carry-forward tax losses can be used. impairment of financial assets. recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources. impairment test of non-financial assets: key assumptions used in estimating recoverable cash flows. fair value measurement of financial instruments. sificaaaaatttttioioioioionnnnn sific t clt claaaaassssssific sific t clt cl bbbbb))))) CCCCCuuuuurrrrrrrrrreeeeennnnnt vt vt vt vt veeeeersrsrsrsrsuuuuus nos nos nos nos nonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt cl sific The Group presents assets and liabilities in the balance sheet based on current/ non-current classification. AsAsAsAsAssetsetsetsetsetsssss::::: An asset is treated as current when it is: a) Expected to be realised or intended to be sold or consumed in normal operating cycle. b) Held primarily for the purpose of trading c) Expected to be realised within twelve months after the reporting period, or d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies::::: A liability is current when: (a) It is expected to be settled in normal operating cycle (b) It is held primarily for the purpose of trading (c) It is due to be settled within twelve months after the reporting period, or (d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non- current assets and liabilities. ycle is the the the the the tiiiiimememememe ycle is t ycle is t ycleycle: T: T: T: T: The ohe ohe ohe ohe opppppeeeeerrrrraaaaatttttiiiiinnnnng cg cg cg cg cycle is t ycleycle OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng cg cg cg cg cycle ycle is t n of assssssetsetsetsetsets fos fos fos fos for pr pr pr pr prrrrrooooocccccesesesesessisisisisinnnnng ag ag ag ag andndndndnd n of a n of a isitioioioioion of a isit isit he acqqqqquuuuuisit he ac he ac bbbbbetetetetetwwwwweeeeeeeeeen tn tn tn tn the ac n of a isit he ac sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss. T. T. T. T. Thehehehehe sh e sh e sh and cnd cnd cnd cnd caaaaash e sh a sh a tttttheiheiheiheiheir rr rr rr rr reaeaeaeaealllllisaisaisaisaisatttttioioioioion in in in in in cn cn cn cn caaaaash a sh e sh a s its its os os os os opppppeeeeerrrrraaaaatttttiiiiinnnnnggggg s its it e monnnnnttttthhhhhs as as as as as it e mo e mo s idennnnntttttifieifieifieifieified td td td td twwwwwelelelelelvvvvve mo s ide s ide GrGrGrGrGrouououououp hp hp hp hp haaaaas ide e mo s ide ycle. ycle. cccccycle. ycle. ycle. ccccc))))) PPPPPrrrrrooooo ppppp eeeeerrrrr ttttt yyyyy, P, P, P, P, Plllllaaaaannnnnt a E) an dn dn dn dn d E) a t (PPPPPP E) a E) a t (P nd Equuuuu iiiiipppppm em em em em ennnnnt (P t (P nd Eq nd Eq t a t a t and Eq E) a t (P nd Eq t a DDDDDeeeeeppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn Property, plant and equipment and capital work in progress are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Such cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct services, any other costs directly attributable to bringing the assets to its working condition for their intended use and cost of replacing part of the plant and equipment and borrowing costs for long- term construction projects if the recognition criteria are met. When parts of an item of PPE having significant costs have different useful lives, then they are accounted for as separate items (major components) of property, plant & equipment. An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS::::: On transition to Ind AS, the Group has elected to continue with the carrying value of all its property, plant and equipment as at 1 April 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such property, plant and equipment. Pearl Global Industries Limited Annual Report 2019-20 103 Notes to consolidated financial statements for the year ended March 31, 2020 SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt ct ct ct ct cososososostttttsssss: : : : : The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item of property, plant and equipment, if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably with the carrying amount of the replaced part getting derecognised. The cost for day-to-day servicing of property, plant and equipment are recognised in statement of profit and loss as and when incurred. s : s : g Costtttts : g Cos g Cos DDDDDeeeeecccccooooommmmmmmmmmisisisisissiosiosiosiosionnnnniiiiinnnnng Cos s : The present value of the s : g Cos expected cost for the decommissioning of an asset, if any, after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. (as applicable) CCCCCaaaaapppppitititititaaaaal wl wl wl wl wooooorrrrrk ik ik ik ik in pn pn pn pn prrrrrooooogggggrrrrresesesesessssss: : : : : Capital work in progress comprises the cost of fixed assets that are not ready for their intended use at the reporting date. Cost comprises of purchase cost, related acquisition expenses, borrowing costs and other direct expenditure. Depreciation is provided on a pro-rata basis on the straight- line basis on the estimated useful life prescribed under Schedule II to Companies Act , 2013 with the following exception : Fixed asset costing upto ` 5000 has been fully depreciated during the financial year Leasehold land has been amortised over the lease term. - - - ddddd))))) IIIIInnnnnvvvvvesesesesestttttmememememennnnnt Pt Pt Pt Pt Prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies Property that is held for rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any. The Group, based on technical assessment made by management, depreciates the building over estimated useful life of 60 years. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS: : : : : On transition to Ind AS, the Group has elected to continue with the carrying value of all its investment properties as at 1 April 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such investment properties. e)e)e)e)e) OOOOOtttttheheheheher Ir Ir Ir Ir Innnnntttttaaaaannnnngggggibibibibible ale ale ale ale assssssetsetsetsetsetsssss nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea nd mea RRRRReeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea Intangible assets that are acquired by the Group are measured initially at cost. Intangible assets with finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses, if any. All expenditures, qualifying as Intangible Assets are amortized over estimated useful life. Specialized softwares are amortized over a period of 3 years or license period whichever is earlier. Freehold Land is not depreciated. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS Useful life considered for calculation of depreciation for various assets class are as follows:- AsAsAsAsAsset Cset Cset Cset Cset Clllllaaaaassssssssss UUUUUsefsefsefsefsefuuuuul Ll Ll Ll Ll Lifeifeifeifeife Factory Building Non- Factory Building Plant and Equipment’s Furniture and Fixtures Office Equipment Vehicles Computer Equipment Computer Software 30 Years 60 Years 5 - 15 Years 3 - 10 Years 3 - 5 Years 5 - 8 Years 3 Years 5 Years Depreciation Method, useful lives and residual values are reviewed at each financial year end and adjusted, if appropriate. On transition to Ind AS, the Group has elected to continue with the carrying value of all its intangible assets recognized as at April 01, 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such intangible assets. SSSSSubse t Expppppeeeeendndndndndititititituuuuurrrrreeeee : : : : : Subsequent expenditure is t Ex ubseubseqqqqqueueueueuennnnnt Ex t Ex ubseubse t Ex capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognized in Statement of Profit and Loss as incurred. Amortisation and useful lives: Intangible assets with finite lives are amortised over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each 104 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. The amortisation method, residual value and the useful lives of intangible assets are reviewed annually and adjusted as necessary. fffff ))))) BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnng cg cg cg cg cososososostttttsssss Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use. sactioioioioionnnnns as as as as and Tnd Tnd Tnd Tnd Trrrrraaaaannnnnslslslslslaaaaatttttioioioioionnnnnsssss sact ggggg ))))) FFFFFooooorrrrreigeigeigeigeign Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncy Ty Ty Ty Ty Trrrrraaaaannnnnsact sact sact FFFFFuuuuunctnctnctnctnctioioioioionnnnnaaaaal al al al al and pnd pnd pnd pnd prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioionnnnnaaaaal cul cul cul cul currrrrrrrrreeeeencncncncncyyyyy The Consolidated financial statements are presented in Indian Rupees (`). Items included in the Consolidated Financial statements of the Group are recorded using the currency of the primary economic environment in which the Group operates (the ‘functional currency’). All the financial information presented in ‘ except where otherwise stated. TTTTTrrrrraaaaannnnnsact sact sact sactioioioioionnnnns as as as as and bnd bnd bnd bnd baaaaalllllaaaaancncncncnceseseseses sact Transactions in foreign currencies are translated into the functional currency of the Group at the exchange rates at the date the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date.Non-monetary assets and liabilities that are measured at fair value in a foreign currencies are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and iabilities that are measured in terms of historical cost are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings. Advaces received or paid in foreign currency are recognised at exchange rate on the date of transaction and not re- translated. p Cop Commmmmpppppaaaaannnnniesiesiesiesies p Cop Co GrGrGrGrGrouououououp Co The results and financial position of foreign operations that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • • assets and liabilities are translated at the closing rate at the date of that balance sheet income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), On Consolidation, all resulting exchange differences on translation are recognised in other comprehensive income, that will be reclassified subsequently to statement of profit and loss. hhhhh))))) RRRRReeeeevvvvveeeeennnnnue Rue Rue Rue Rue Reeeeecccccooooogggggnnnnnitititititioioioioionnnnn The Group derives revenue primarily from export of manufactured and traded goods. Effective 01 April 2018, the Group has adopted Indian Accounting Standard 115 (Ind AS 115) -’Revenue from contracts with customers’ The effect on adoption of Ind- AS 115 was insignificant. RRRRReeeeevvvvveeeeennnnnue fr ue frue frooooom cm cm cm cm cooooonnnnntttttrrrrract wact wact wact wact wititititith cuh cuh cuh cuh cussssstttttooooomememememersrsrsrsrs ue frue fr Revenue from contract with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for Pearl Global Industries Limited Annual Report 2019-20 105 Notes to consolidated financial statements for the year ended March 31, 2020 transferring distinct goods or services to a customer as specified in the contract, excluding the amount collected on behalf of third parties(for example, taxes and duties collected on behalf of government) and net of returns & discounts. The Group has concluded that it is acting as principal in its revenue arrangements. The Group considers whether there are other promises in the contract that are separate performance obligations to which a protion of the transaction price needs to be allocated. In determining the transaction price for the sale of products, the Group considers the effect of variable consideration, the existence of significant financing component, non-cash consideration, and consideration payable to the customer (if any). The Group assesses its revenue arrangements against specific recognition criterior like exposure to significant risks & rewards associated with the sale of goods or services. When deciding the most appropriate basis for presenting revenue or costs of revenue, both the legal form and substance of the agreement between the Group and its Customers are reviewed to determine each party’s respective role in the transaction. cific reeeeevvvvveeeeennnnnue rue rue rue rue reeeeecccccooooogggggnnnnnitititititioioioioion cn cn cn cn crrrrritititititeeeeerrrrriaiaiaiaia::::: cific r cific r SSSSSpppppeeeeecific r cific r le of prrrrroooooddddductuctuctuctuctsssss le of p le of p (((((iiiii))))) SSSSSaaaaale of p le of p Revenue from sale of products is recognised at the point in time when control of product is transferred to the customer. In case of Export sale it is on the basis of date of airway bill/bill of lading. (((((iiiiiiiiii))))) JJJJJooooob wb wb wb wb wooooorrrrrk ik ik ik ik incncncncncooooomememememe Revenue from job work on the product is recognised at the point in time when control of services is transferred to the customer, generally on the delivery of the product after completion of job work. (((((iiiiiiiiiiiiiii))))) ExExExExExpppppooooorrrrrt It It It It Incncncncnceeeeennnnntttttiviviviviveseseseses Export Incentives under various schemes are accounted in the year of export. (((((iv)iv)iv)iv)iv) OOOOOtttttheheheheher Ir Ir Ir Ir Incncncncncooooomesmesmesmesmes a) Sale of software/ SAP income is recognized at the delivery of complete module & patches group (through companies). reimbursement from b) Rental Income is recognized on accrual basis as per the terms of agreement. c) In respect of interest income, revenue is recognised on the time proportion basis, taking into account the amount outstanding and the rate of interest applicable. d) Dividend Income is recognized when the right to receive is established. Variable Consideration If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. g Commmmmpppppooooonenenenenennnnnttttt g Cog Co g Co SigSigSigSigSignnnnnificificificificificaaaaannnnnt Ft Ft Ft Ft Fiiiiinnnnnaaaaancincincincincinnnnng Co Generally, the Group does not receive short term or long term advances from its customers except in certain scenarios. Using the practical expedient in Ind AS 115, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of promised good or service to the customer and when the customer pays for good or service will be one year or less. The Group does not expect to have any contracts where the period between the transfer of promised goods and services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money. act baaaaalllllaaaaancncncncnceseseseses act b CoCoCoCoConnnnntttttrrrrract b act b act b act assssssetsetsetsetsetsssss act a CoCoCoCoConnnnntttttrrrrract a act a act a A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. TTTTTrrrrrade r ade reeeeeccccceiveiveiveiveivababababableslesleslesles ade r ade r ade r A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section Financial instruments – initial recognition and subsequent measurement. 106 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 act liabiabiabiabiabilililililitititititiesiesiesiesies act l CoCoCoCoConnnnntttttrrrrract l act l act l jjjjj))))) LLLLLeaeaeaeaeasessessessesses A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract. CosCosCosCosCost tt tt tt tt to oo oo oo oo obtbtbtbtbtaaaaaiiiiin a cn a cn a cn a cn a cooooonnnnntttttrrrrractactactactact The Group does not capitalise costs to obtain a contract because majorly the contracts have terms that do not extend beyond one year. iiiii))))) IIIIInnnnnvvvvveeeeennnnntttttooooorrrrriesiesiesiesies i) ii) iii) Inventories of finished goods manufactured by the Group are valued style-wise and at lower of cost and estimated net realizable value. Cost includes material cost on weighted average basis and appropriate share of overheads incurred in bringing them to their present location and condition. In the case of manufactured inventories and work-in-progress, cost includes an appropriate share of fixed production overheads based on normal operating capacity. Inventories of finished goods (traded) are valued at lower of procurement cost (FIFO method) or estimated net realizable value. Inventories of raw material, work in progress, accessories & consumables are valued at cost (weighted average method) or at estimated net realizable value whichever is lower. WIP cost includes appropriate portion of allocable overheads. Raw materials and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realisable value. iv) Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on a item by item basis. Obsolete or slow moving inventories are identified from time to time and a provision is made for such inventories as appropriate on periodic basis. The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Group as a lessee The Group lease asset classes primarily comprise of lease for land and building. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Group has the right to direct the use of the asset. The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. For these short-term and low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets as below: i) Right-of-use assets The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the underlying assets (i.e. 30 and 60 years) If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. ii) Lease Liabilities At the commencement date of the lease, the Group Pearl Global Industries Limited Annual Report 2019-20 107 Notes to consolidated financial statements for the year ended March 31, 2020 recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Group’s lease liabilities are included in other current and non-current financial liabilities. (iii) Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term. “Lease liability” and “Right of Use” asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. Group as a lessor Leases for which the Group is a lessor is classified as finance or operating lease. Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. nefitsssss k)k)k)k)k) EEEEEmmmmmppppplololololoyeyeyeyeyee’e’e’e’e’s bs bs bs bs beeeeenefit nefit nefit nefit nefitsssss: All employee benefits nefit nefit ShoShoShoShoShorrrrrt tt tt tt tt teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit expected to be settled wholly within twelve months of rendering the service are classified as short-term employee benefits. When an employee has rendered service to the Group during an accounting period, the Group recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense unless another Ind AS requires or permits the inclusion of the benefits in the cost of an asset. Benefits such as salaries, wages and short-term compensated absences, bonus and ex-gratia etc. are recognised in statement of profit and loss in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid after deducting any amount already paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. If the amount already paid exceeds the undiscounted amount of the benefits, the Group recognises that excess as an asset / prepaid expense to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund. DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnn A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a statutory authority and will have no legal or constructive obligation to pay further amounts. Retirement benefits in the form of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund Scheme are defined contribution plans. The contributions paid/payable to government administered respective funds are recognised as an expense in the Statement of Profit and loss during the period in which the employee renders the related service. 108 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 nefit plllllaaaaannnnn nefit p DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p nefit p nefit p A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee’s salary and the tenure of employment. Vesting occurs upon completion of five years of service. The Group accounts for the liability for gratuity benefits payable in future based on an independent actuarial valuation report using the projected unit credit method as at the year end. The obligations are measured at the present value of the estimated future cash flows. The discount rate is generally based upon the market yields available on Government bonds at the reporting date with a term that matches that of the liabilities. Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive Income in the statement of profit and loss. All other expenses related to defined benefit plans are recognised in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive Income will not be reclassified to statement of profit and loss hence it is treated as part of retained earnings in the statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as past service costs. nefitsssss OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefit As per the Group’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilised during the service, or encashed. Encashment can be made during the service, on early retirement, on withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits is determined based on the seniority and the respective employee’s salary. The Group records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. lllll))))) PPPPPrrrrrovovovovovisioisioisioisioisionnnnnsssss GGGGGeeeeenenenenenerrrrraaaaalllll Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. The unwinding of discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed. mmmmm))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss A financial instrument is a contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments. (((((iiiii) F) F) F) F) Fiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea nd mea A financial asset is initially recognised at fair value. In case of financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and loss. In other cases, the transaction cost are attributed to the acquisition value of the financial asset. SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t mea t mea t measssssuuuuurrrrreeeeemememememennnnnttttt t mea For purposes of subsequent measurement, financial assets are classified in three categories: - Financial Asset carried at amortised cost Pearl Global Industries Limited Annual Report 2019-20 109 Notes to consolidated financial statements for the year ended March 31, 2020 Financial Asset at fair value through other comprehensive income (FVTOCI) as financial liabilities at fair value through profit or loss. - - Financial Asset at fair value through profit and loss (FVTPL) set caaaaarrrrrrrrrrieieieieied ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt set c FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset c set c set c A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. h oth eh eh eh eh errrrr h ot h ot u e thhhhhrrrrro uo uo uo uo uggggg h ot u e t u e t t faaaaa iiiii r vr vr vr vr vaaaaa lllllu e t t f t f set a set a l al asssssset a l al a FFFFFiiiiinnnnnaaaaancianciancianciancial a set at f h ot u e t t f set a cccccooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome (Fme (Fme (Fme (Fme (FVVVVVTTTTTOOOOOCCCCCI)I)I)I)I) A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. nd lossssss nd los nd los ofit a ofit a set at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a set a set a FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset a ofit and los nd los ofit a set a (F(F(F(F(FVVVVVTTTTTPPPPPL)L)L)L)L) A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the Consolidated Balance Sheet) when: (i) The contractual rights to receive cash flows from the asset has expired, or (ii) The Group has transferred its contractual rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. (((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea nd mea Financial liabilities are classified, at initial recognition, All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group financial liabilities include borrowings, trade and other payables, security deposits received etc. t measssssuuuuurrrrreeeeemememememennnnnttttt t mea t mea SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t mea For purposes of subsequent measurement, financial liabilities are classified in two categories: - - Financial liabilities at amortised cost Financial liabilities at fair value through profit and loss (FVTPL) A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such as initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the Statement of Profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense is recognised in the Statement of Profit and loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de- recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. g of finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss g of fi (((((iiiiiiiiiiiiiii))))) OffOffOffOffOffsetsetsetsetsettttttiiiiinnnnng of fi g of fi g of fi 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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously (((((iv)iv)iv)iv)iv) DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss Till March 31, 2019, the Group uses derivative 110 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss. (v)(v)(v)(v)(v) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg With effect from April 2019, the Group adopted Hedge Accounting.The derivatives that are designated as hedging instrument under Ind AS 109 to mitigate risk arising out of foreign currency transactions are accounted for as cash flow hedges. The Group enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Group. The hedge instruments are designated and documented as hedges at the inception of the contract. The effectiveness of hedge instruments is assessed and measured at inception and on an ongoing basis. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in OCI, e.g., cash flow hedging reserve and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the statement of profit and loss. The amount accumulated is retained in cash flow hedge reserve and reclassified to profit or loss in the same period or periods during which the hedged item affects the statement of profit and loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument is terminated or exercised prior to its maturity/ contractual term, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is reclassified to the Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified immediately in the statement of profit and loss. nnnnn))))) t of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of fi IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of fi t of fi t of fi The Group measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increases in credit risk. Expected credit loss is the weighted average of the difference between all contractual cash flows that are due to the Group in accordance with the contracts and all the cash flows that the Group expects to receive, discounted at original effective interest rate with the respective risk of defaults occuring as the weights. ooooo))))) t of nonnnnn-fi-fi-fi-fi-finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of no IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of no t of no t of no The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit (‘CGU’) is the greater of its value in use or its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing , assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (‘CGU’). An impairment loss is recognized, if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount and is recognised in statement of profit and loss. Impairment losses recognised in prior periods are assessed at end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying Pearl Global Industries Limited Annual Report 2019-20 111 Notes to consolidated financial statements for the year ended March 31, 2020 amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. ue measssssuuuuurrrrreeeeemememememennnnnttttt ue mea ppppp))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea ue mea Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (a) In the principal market for the asset or liability, or (b) In the absence of a principal market, in the most advantageous market for the asset or liability A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. qqqqq))))) TTTTTaaaaaxxxxxeseseseses CCCCCuuuuurrrrrrrrrreeeeennnnnt it it it it incncncncncooooome tme tme tme tme taaaaaxxxxx Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income (OCI) or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Current tax assets are offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously. DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Tax relating to items recognized directly in equity/other comprehensive income is recognized in respective head and not in the statement of profit & loss. The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate 112 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 to the same taxable entity and the same taxation authority. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Minimum Alternate Tax Minimum Alternate Tax (MAT) paid in the year is charged to the Statement of Profit and Loss as current tax.The Group recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Group will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which Group recognises MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as “MAT Credit Entitlement”. The Group reviews the “MAT Credit Entitlement” asset at each reporting date and writes down the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the specified period.In accordance with Ind AS 12 Group is grouping MAT credit entitlement with Deferred Tax Assets/ Liabilities (Net). ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid ubsid ubsid Investment in subsidiaries There is an option to measure investments in subsidiaries at cost in accordance with Ind AS 27 at either: (a) Fair value on date of transition; or (b) Previous GAAP carrying values The Group has decided to use the previous GAAP carrying values to value its investments in its subsidiaries as on the date of transition, April 01, 2016. r)r)r)r)r) CCCCCaaaaash a sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss sh esh e sh e sh ash and cnd cnd cnd cnd caaaaash e sh ash a Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash balance on hand, cash balance at banks and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management. s)s)s)s)s) EEEEEaaaaarrrrrnnnnniiiiinnnnngggggs ps ps ps ps peeeeer shr shr shr shr shaaaaarrrrre (Ee (Ee (Ee (Ee (EPPPPPS)S)S)S)S) In determining earnings per share, the Group considers the net profit after tax and includes the post tax effect of any extraordinary items. Basic EPS amounts are calculated by dividing the profit for the year attributable to the shareholders of the Group by the weighted average number of equity shares outstanding as at the end of reporting period. Diluted EPS amounts are calculated by dividing the profit attributable to the shareholders of the Group by the weighted average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. A transaction is considered to be antidilutive if its effect is to increase the amount of EPS, either by lowering the share count or increase the earnings. t)t)t)t)t) GGGGGovovovovoveeeeerrrrrnnnnnmememememennnnnt gt gt gt gt grrrrraaaaannnnntttttsssss Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to Profit and Loss on a straight - line basis over the expected lives of related assets and presented within other income. uuuuu))))) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities a ies and cnd cnd cnd cnd cooooonnnnntttttiiiiinnnnngggggeeeeennnnnt at at at at assssssetsetsetsetsetsssss ies a ies a ies a A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. v)v)v)v)v) RRRRResea ch & devvvvveloeloeloeloelopppppmememememennnnnt ct ct ct ct cososososostttttsssss ch & de esearrrrrch & de ch & de esea esea ch & de esea Research and development costs that are in nature of tangible assets and are expected to generate probable future economic benefits are capitalised as tangible assets. Revenue expenditure on research and development is Pearl Global Industries Limited Annual Report 2019-20 113 Notes to consolidated financial statements for the year ended March 31, 2020 charged to the statement of profit and loss in the year in which it is incurred. w)w)w)w)w) ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss When items of income and expense within statement of profit and loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Group for the period, the nature and amount of such material items are disclosed seperately as exceptional items. 114 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 E 4 : PROOOOOPPPPPEEEEERRRRRTTTTTYYYYY, P, P, P, P, PLLLLLAAAAANNNNNTTTTT E 4 : PR NONONONONOTTTTTE 4 : PR E 4 : PR E 4 : PR AAAAANNNNND EQD EQD EQD EQD EQUUUUUIIIIIPMPMPMPMPMEEEEENNNNNTTTTT LaLaLaLaLandndndndnd----- frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss seholdldldldld seho seho lealealealealeaseho seho LLLLLeaeaeaeaeaseho seholdldldldld seho seho seho iiiiimmmmmppppprrrrrovovovovoveeeeemememememennnnntttttsssss PPPPPlllllaaaaannnnnt at at at at andndndndnd E qE qE qE qE quuuuuiiiiipppppm em em em em ennnnnttttt FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee VVVVVehehehehehicles icles icles icles icles nd Fnd Fixixixixixuuuuurrrrreseseseses nd Fnd F aaaaand F TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed cd cd cd cd cososososost)t)t)t)t) As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 Add: Additions made during the year Less: Disposals/adjustments during the year Reclassification to other assets Add: Exchange realignment Add: Currency transalation reserve ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Additions made during the year Less: Reclassification on account of adoption of INDAS 116 Less: Disposals/adjustments during the year Reclassification to other assets Add: Exchange realignment Add: Currency transalation reserve ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn d de d de AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed de d de il 1, 2018 il 1, 2018 As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2018 il 1, 2018 il 1, 2018 Add: Depreciation charge for the year Less: Disposals/adjustments during the year Reclassification to other assets Add: Exchange realignment Add: Currency transalation reserve As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Depreciation charge for the year Less: Reclassification on account of adoption of Ind AS 116 Less: Disposals/adjustments during the year Reclassification to other assets Add: Exchange realignment Add: Currency transalation reserve As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 1,647.34 1,647.34 1,647.34 1,647.34 1,647.34 41.43 76.47 - - - 1,612.30 1,612.30 1,612.30 1,612.30 1,612.30 221.95 - 4.53 - - - 1,829.72 1,829.72 1,829.72 1,829.72 1,829.72 ----- - - - - - ----- - - - - - - ----- 94.45 94.45 94.45 94.45 94.45 2,764.85 - - (0.98) (65.99) 2,792.31 2,792.31 2,792.31 2,792.31 2,792.31 - (2,812.42) - - - 67.85 47.74 47.74 47.74 47.74 47.74 18.21 18.21 18.21 18.21 18.21 19.67 - - (0.49) 0.64 38.03 38.03 38.03 38.03 38.03 0.34 (37.92) - - - 0.91 1.371.37 1.371.37 1.37 5,022.63 5,022.63 5,022.63 5,022.63 5,022.63 1,647.76 - - - 32.84 6,703.23 6,703.23 6,703.23 6,703.23 6,703.23 38.17 - 26.95 - - 250.60 6,965.06 6,965.06 6,965.06 6,965.06 6,965.06 649.03 649.03 649.03 649.03 649.03 217.62 - - - 23.55 890.20 890.20 890.20 890.20 890.20 272.23 - - - - 51.18 1,213.61 1,213.61 1,213.61 1,213.61 1,213.61 469.84 469.84 469.84 469.84 469.84 252.20 - (95.04) (18.14) (1.41) 607.45 607.45 607.45 607.45 607.45 191.20 - - - (8.53) 18.95 809.06 809.06 809.06 809.06 809.06 80.94 80.94 80.94 80.94 80.94 135.71 - (19.87) (8.20) 0.62 189.20 189.20 189.20 189.20 189.20 152.36 - - (4.03) 11.31 348.85 348.85 348.85 348.85 348.85 12,903.37 12,903.37 12,903.37 12,903.37 12,903.37 3,796.54 155.76 95.04 (28.78) 316.74 16,927.14 16,927.14 16,927.14 16,927.14 16,927.14 1,700.23 (91.56) 125.99 - (13.32) 823.03 19,219.53 19,219.53 19,219.53 19,219.53 19,219.53 3,109.09 3,109.09 3,109.09 3,109.09 3,109.09 1,739.10 50.03 19.87 (17.63) 89.67 4,890.06 4,890.06 4,890.06 4,890.06 4,890.06 1,962.45 (31.77) 73.71 - (7.93) 328.45 7,067.56 7,067.56 7,067.56 7,067.56 7,067.56 22,296.84 22,296.84 1,129.38 1,129.38 1,029.83 1,029.83 1,129.38 22,296.84 1,029.83 1,129.38 22,296.84 1,029.83 22,296.84 1,129.38 1,029.83 8,930.08 220.39 206.91 263.36 26.80 4.33 - - - (49.84) (1.94) - 17.52 18.04 317.74 31,231.46 31,231.46 1,338.54 1,338.54 1,250.46 1,250.46 31,231.46 1,338.54 31,231.46 1,250.46 1,338.54 31,231.46 1,338.54 1,250.46 1,250.46 304.50 345.54 2,801.59 (2,903.98) - - 0.02 184.11 341.60 - - - - (0.84) (22.69) 48.01 32.84 1,241.28 32,006.06 32,006.06 1,490.92 1,490.92 1,644.00 1,644.00 32,006.06 1,490.92 32,006.06 1,644.00 1,490.92 32,006.06 1,490.92 1,644.00 1,644.00 281.19 281.19 281.19 281.19 281.19 152.94 1.75 - - 4.81 437.19 437.19 437.19 437.19 437.19 182.60 - - - - 20.37 640.16 640.16 640.16 640.16 640.16 256.44 256.44 256.44 256.44 256.44 191.16 17.56 - (0.42) 1.27 430.89 430.89 430.89 430.89 430.89 197.51 - 95.26 - (0.27) 12.57 545.45 545.45 545.45 545.45 545.45 4,394.90 4,394.90 4,394.90 4,394.90 4,394.90 2,456.19 69.33 - (26.74) 120.56 6,875.58 6,875.58 6,875.58 6,875.58 6,875.58 2,767.50 (69.68) 168.96 - (12.24) 424.80 9,817.00 9,817.00 9,817.00 9,817.00 9,817.00 1,829.72 1,612.30 46.37 2,754.28 5,751.44 5,813.04 460.21 418.26 12,151.98 12,037.08 1,003.84 813.26 22,189.06 22,189.06 945.47 22,189.06 22,189.06 22,189.06 24,355.89 24,355.89 907.66 24,355.89 24,355.89 24,355.89 a) The above assets includes Gross block of land of ` 78.55 lakh (March 31, 2019: ` 83.08 lakh) situated at Narshingpur, Tehsil District Gurgaon(Haryana). Out of this Gross block of land of ` 42.50 lakh (March 31, 2019: ` 47.03 lakh) represents the amount for which the Holding Company has executed a construction project agreement with DLF Retail Developers Limited on November 30, 2007. However, as certified by the Management, the work has not started during the financial year 2019- 20 due to pending receipt of license from the concerned authority. Pearl Global Industries Limited Annual Report 2019-20 115 Notes to consolidated financial statements for the year ended March 31, 2020 b) In case of, Pearl Global (HK)Limited, as at March 31, 2020, Land titles represent building usage rights of Taman Pasadena Apartment at Jakarta (“Hak Milik atas Satuan Rumah Susun”) for a maximum period of 20 years and could be extended. c) For Information on property, plant and equipment pledged as security by the Group refer Note 21. d) The above property, plant and equipment includes assets given on lease, the details of which are as under: As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 Gross carrying amount Accumulated depreciation NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Gross carrying amount Accumulated depreciation NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt E 5 : CAPPPPPIIIIITTTTTAAAAAL WL WL WL WL WOOOOORRRRRK IK IK IK IK IN PN PN PN PN PRRRRROOOOOGGGGGRRRRREEEEESSSSSSSSSS E 5 : CA E 5 : CA NONONONONOTTTTTE 5 : CA E 5 : CA Capital work in progress a) Breakup of capital work in progress is as follows: Building Plant and Machinery Furniture and Fittings Lease Hold Improvement Other Expenses PPPPPlllllaaaaannnnnt at at at at andndndndnd EqEqEqEqEquuuuuiiiiipppppmememememennnnnttttt FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee aaaaand Fnd Fnd Fnd Fnd Fixixixixixuuuuurrrrreseseseses TTTTTotototototaaaaalllll 27.77 16.59 ---------------------------------------------------------- 11.18 11.18 11.18 11.18 11.18 ---------------------------------------------------------- 21.22 12.21 ---------------------------------------------------------- 9.019.019.019.019.01 ---------------------------------------------------------- 48.99 28.80 ---------------------------------------------------------- 20.19 20.19 20.19 20.19 20.19 ---------------------------------------------------------- 27.77 13.59 ---------------------------------------------------------- 14.17 14.17 14.17 14.17 14.17 ---------------------------------------------------------- 21.22 9.16 ---------------------------------------------------------- 12.06 12.06 12.06 12.06 12.06 ---------------------------------------------------------- 48.99 22.75 ---------------------------------------------------------- 26.23 26.23 26.23 26.23 26.23 ---------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 3,610.29 --------------------------------------------------------- 3,610.29 3,610.29 3,610.29 3,610.29 3,610.29 ======================== 778.62 --------------------------------------------------------- 778.62 778.62 778.62 778.62 778.62 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 2,542.43 1,011.41 - - 56.45 ---------------------------------------------------------- 3,610.29 3,610.29 3,610.29 3,610.29 3,610.29 ---------------------------------------------------------- 632.56 38.38 46.59 54.98 6.11 ---------------------------------------------------------- 778.62 778.62 778.62 778.62 778.62 ---------------------------------------------------------- 116 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 E 6 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNT PT PT PT PT PRRRRROOOOOPPPPPEEEEERRRRRTTTTTIIIIIEEEEESSSSS E 6 : IN NONONONONOTTTTTE 6 : IN E 6 : IN E 6 : IN GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt d Cost)t)t)t)t) d Cos d Cos (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed Cos d Cos As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 Add: Additions made during the year Less: Disposals/adjustments during the year ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Additions made during the year Less: Disposals/adjustments during the year ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed ded ded ded ded deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn il 01, 2018 il 01, 2018 As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 Add: Depreciation charge for the year Less: Disposals/adjustments during the year ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Depreciation charge for the year Less: Disposals/adjustments during the year ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) LaLaLaLaLandndndndnd frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd seholdldldldld seho lealealealealeaseho seho seho BBBBBuuuuuildildildildildiiiiinnnnnggggg TTTTTotototototaaaaalllll 3,085.50 1.29 ----- ---------------------------------------------------------- 3,086.79 ---------------------------------------------------------- 49.14 - ---------------------------------------------------------- 3,135.93 ---------------------------------------------------------- ----- ---------------------------------------------------------- ----- - ---------------------------------------------------------- ----- ---------------------------------------------------------- ----- - ---------------------------------------------------------- ----- ---------------------------------------------------------- 10.36 - 4,580.71 - 7,676.57 7,676.57 7,676.57 7,676.57 7,676.57 1.291.291.291.291.29 ---------------------------------------------------------- 10.36 ---------------------------------------------------------- - - ---------------------------------------------------------- 10.36 ---------------------------------------------------------- ---------------------------------------------------------- 4,580.71 ---------------------------------------------------------- - - ---------------------------------------------------------- 4,580.71 ---------------------------------------------------------- ----- ---------------------------------------------------------- - - ---------------------------------------------------------- ----- ---------------------------------------------------------- - - ---------------------------------------------------------- ----- ---------------------------------------------------------- 162.22 162.22 162.22 162.22 162.22 ---------------------------------------------------------- 85.76 - ---------------------------------------------------------- 247.98 247.98 247.98 247.98 247.98 ---------------------------------------------------------- 85.76 - ---------------------------------------------------------- 333.74 333.74 333.74 333.74 333.74 ---------------------------------------------------------- ---------------------------------------------------------- 7,677.86 7,677.86 7,677.86 7,677.86 7,677.86 ---------------------------------------------------------- 49.14 49.14 49.14 49.14 49.14 ----- ---------------------------------------------------------- 7,727.00 7,727.00 7,727.00 7,727.00 7,727.00 ---------------------------------------------------------- 162.22 162.22 162.22 162.22 162.22 ---------------------------------------------------------- 85.76 85.76 85.76 85.76 85.76 ----- ---------------------------------------------------------- 247.98 247.98 247.98 247.98 247.98 ---------------------------------------------------------- 85.76 85.76 85.76 85.76 85.76 ----- ---------------------------------------------------------- 333.74 333.74 333.74 333.74 333.74 ---------------------------------------------------------- 3,135.93 3,086.79 10.36 10.36 4,246.97 4,332.73 7,393.26 7,429.89 (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 (a)(a)(a)(a)(a) AAAAAmoumoumoumoumounnnnnttttts rs rs rs rs reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in sn sn sn sn stttttaaaaattttteeeeemememememennnnnt of t of t of t of t of ppppprrrrrofit a nd loss fos fos fos fos for ir ir ir ir innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies nd los nd los ofit a ofit a ofit and los nd los ofit a Rental Income Direct operating expenses of property that generated rental income Direct operating expenses of property that did not generated rental income IIIIIncncncncncooooome ame ame ame ame arrrrrisiisiisiisiisinnnnng frg frg frg frg frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties b ies befoefoefoefoeforrrrre che che che che chaaaaargrgrgrgrgiiiiinnnnng deg deg deg deg deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn ies b ies b ies b Depreciation IIIIIncncncncncooooome frme frme frme frme frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties (net) ies (net) ies (net) ies (net) ies (net) (((((bbbbb))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of i ue of i ue of i ue of innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies ue of i EEEEEssssstttttiiiiimmmmmaaaaatttttioioioioion of f n of f n of f n of faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue n of f 980.53 65.88 14.23 900.42 900.42 900.42 900.42 900.42 85.76 --------------------------------------------------------- 814.66 814.66 814.66 814.66 814.66 --------------------------------------------------------- 10,793.94 10,793.94 10,793.94 10,793.94 10,793.94 --------------------------------------------------------- 814.53 53.62 77.46 683.45 683.45 683.45 683.45 683.45 85.76 --------------------------------------------------------- 597.69 597.69 597.69 597.69 597.69 --------------------------------------------------------- 11,378.15 11,378.15 11,378.15 11,378.15 11,378.15 --------------------------------------------------------- The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex,age of building and trend of fair market rent.This valuation is based Pearl Global Industries Limited Annual Report 2019-20 117 Notes to consolidated financial statements for the year ended March 31, 2020 on valuations performed by an accredited independent valuer. Fair valuation is based on replacement cost method. The fair value measurement is categorised in level 2 fair value hierarchy. (((((ccccc))))) In the earlier years, the Group had initiated the process of converting its leasehold land (situated at Plot A-3, Naraina, New Delhi) into freehold land. However, the deed is yet to be transferred in the name of the Company as at March 31, 2020. E 7 : GOOOOOODDDDDWWWWWIIIIILLLLLLLLLL E 7 : GO NONONONONOTTTTTE 7 : GO E 7 : GO E 7 : GO Goodwill on acquisition of subsidiaries Add: Foreign Exchange Fluctuation Less: Impairment of Goodwill E 8 : OTHHHHHEEEEER IR IR IR IR INNNNNTTTTTAAAAANNNNNGGGGGIIIIIBBBBBLLLLLE AE AE AE AE ASSSSSSSSSSEEEEETSTSTSTSTS E 8 : OT E 8 : OT NONONONONOTTTTTE 8 : OT E 8 : OT GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt d Cost)t)t)t)t) d Cos d Cos (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed Cos d Cos il 1, 2018 il 1, 2018 As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2018 il 1, 2018 il 1, 2018 Add: Additions during the year Less: Disposals / adjustments during the year ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Additions during the year Less: Disposals / adjustments during the year ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 AAAAAmomomomomorrrrrtttttisaisaisaisaisatttttioioioioion an an an an and ind ind ind ind immmmmpppppaaaaaiiiiirrrrrmememememennnnnttttt As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 Add: Amortisation charge for the year Less: On disposals / adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Amortisation charge for the year Less: On disposals / adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 1,897.56 120.22 (225.12) --------------------------------------------------------- 1,792.66 1,792.66 1,792.66 1,792.66 1,792.66 ======================== 1,897.56 - - --------------------------------------------------------- 1,897.56 1,897.56 1,897.56 1,897.56 1,897.56 ======================== (Amount in ` Lakh, unless otherwise stated) CoCoCoCoCommmmmpupupupuputtttteeeeerrrrr SSSSSofofofofoftttttwwwwwaaaaarrrrreeeee 219.88 219.88 219.88 219.88 219.88 27.65 - --------------------------------------------------------- 247.53 247.53 247.53 247.53 247.53 17.58 - --------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 --------------------------------------------------------- 85.06 85.06 85.06 85.06 85.06 47.54 - --------------------------------------------------------- 132.60 132.60 132.60 132.60 132.60 --------------------------------------------------------- 47.75 - --------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 --------------------------------------------------------- 84.76 114.94 TTTTTotototototaaaaalllll 219.88 219.88 219.88 219.88 219.88 27.65 --------------------------------------------------------- 247.53 247.53 247.53 247.53 247.53 17.58 - --------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 --------------------------------------------------------- 85.06 85.06 85.06 85.06 85.06 47.54 - --------------------------------------------------------- 132.60 132.60 132.60 132.60 132.60 --------------------------------------------------------- 47.75 - --------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 --------------------------------------------------------- 84.76 84.76 84.76 84.76 84.76 114.94 114.94 114.94 114.94 114.94 118 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 E 9 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTSTSTSTSTS E 9 : IN NONONONONOTTTTTE 9 : IN E 9 : IN E 9 : IN (I)(I)(I)(I)(I) NNNNNooooon Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeennnnnttttt AAAAA..... EqEqEqEqEquuuuuititititity Iy Iy Iy Iy Innnnnssssstttttrrrrruuuuumememememennnnntttttsssss FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a nd lossssss nd los nd los ofit a ofit a ofit and los nd los ofit a (Q(Q(Q(Q(Quotuotuotuotuoteeeeeddddd))))) PDS Multinational fashions Limited, India 50,000 (March 31, 2019: 50,000) Equity Shares of ` 10 each fully paid up B.B.B.B.B. C.C.C.C.C. nds - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd))))) nds - ( nds - ( IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in mn mn mn mn muuuuutttttuuuuuaaaaal fl fl fl fl fuuuuunds - ( nds - ( FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe Investments in mutual funds ies - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd))))) ies - ( ies - ( IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in Gn Gn Gn Gn Govovovovoveeeeerrrrrnnnnnmememememennnnnt set set set set secucucucucurrrrrititititities - ( ies - ( AAAAAt at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt Investments in key man insurance policy (Refer ‘b’ below) Investments in Government securities - Gold Sovereign Bond- 37 units of 2 gram each issued by Reserve Bank of India A + B + C) A + B + C) TTTTTotototototaaaaal (l (l (l (l (A + B + C) A + B + C) A + B + C) (I(I(I(I(II)I)I)I)I) CCCCCuuuuurrrrrrrrrreeeeennnnnttttt AAAAA..... nds - (Quotuotuotuotuoteeeeeddddd))))) nds - (Q nds - (Q IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in mn mn mn mn muuuuutttttuuuuuaaaaal fl fl fl fl fuuuuunds - (Q nds - (Q nd lossssss nd los nd los ofit a FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a ofit a ofit and los nd los ofit a ICICI Prudential Short Term Fund DP Growth 536,068.057 units of Face Value of ` 10 per unit(March 31, 2019: Nil units) L&T Banking and PSU debt fund direct plan - growth 1,223,214.385 units of Face Value of ` 10 per unit(March 31, 2019: Nil units) IDFC Banking and PSU debt fund direct plan - growth 1,267,806.925 units of Face Value of ` 10 per unit(March 31, 2019: Nil units) a) Aggregate book value of quoted investments Aggregate market value of quoted investments Aggregate value of unquoted investments Aggregate amount of impairment in value of unquoted investments Aggregate value of unquoted investments (net of impairment) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 141.00 133.50 --------------------------------------------------------- 141.00 141.00 141.00 141.00 141.00 --------------------------------------------------------- --------------------------------------------------------- 133.50 133.50 133.50 133.50 133.50 --------------------------------------------------------- 948.97 --------------------------------------------------------- 948.97 948.97 948.97 948.97 948.97 --------------------------------------------------------- 1,312.68 --------------------------------------------------------- 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 --------------------------------------------------------- 1,992.77 1,828.35 1.63 1.63 --------------------------------------------------------- 1,994.40 1,994.40 1,994.40 1,994.40 1,994.40 --------------------------------------------------------- 3,084.37 3,084.37 3,084.37 3,084.37 3,084.37 ======================== --------------------------------------------------------- 1,829.98 1,829.98 1,829.98 1,829.98 1,829.98 --------------------------------------------------------- 3,276.16 3,276.16 3,276.16 3,276.16 3,276.16 ======================== 237.83 227.10 227.75 --------------------------------------------------------- 692.68 692.68 692.68 692.68 692.68 ======================== 833.68 833.68 2,943.37 - 2,943.37 - - - --------------------------------------------------------- ----- ======================== 133.50 133.50 3,142.66 - 3,142.66 b) The amount invested in key man insurance policy by Pearl Global (HK) Limited has been pledged to bank to secure banking facilities by the said subsidiary. Pearl Global Industries Limited Annual Report 2019-20 119 Notes to consolidated financial statements for the year ended March 31, 2020 E10 : LOAAAAANSNSNSNSNS E10 : LO NONONONONOTTTTTE10 : LO E10 : LO E10 : LO (Unsecured, considered good unless otherwise stated) Loans to employees Loans to related parties (Refer note no. 47) Loans to others (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 7.63 - 2,437.62 ---------------------------------------------------------- 2,445.25 2,445.25 2,445.25 2,445.25 2,445.25 ======================== 18.10 - 2,275.50 ---------------------------------------------------------- 2,293.60 2,293.60 2,293.60 2,293.60 2,293.60 ======================== 25.78 300.00 1,405.46 ---------------------------------------------------------- 1,731.24 1,731.24 1,731.24 1,731.24 1,731.24 ======================== 49.63 300.00 1,315.09 ---------------------------------------------------------- 1,664.72 1,664.72 1,664.72 1,664.72 1,664.72 ======================== a) Loans to others bear interest rate of 2%-2.5% per annum, and are receivable on or before December 31, 2022 and March 31, 2023. b) The Group has no loans which have significant increase in credit risk and loans which are credit impaired. (Refer Note No. 44) E 11 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL AL AL AL AL ASSSSSSSSSSEEEEETSTSTSTSTS E 11 : OT E 11 : OT NONONONONOTTTTTE 11 : OT E 11 : OT Term deposits Loan to related parties (Unsecured, considered good unless otherwise stated) Security deposits (Refer ‘a’ below) Interest accrued but not due on - - Deposits with original maturity of more than 12 months (Refer note 18) Mark to market forward contracts Other receivable TTTTTotototototaaaaal (l (l (l (l (AAAAA))))) (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 1,069.32 948.10 78.38 176.71 28.27 - 265.11 0.80 - 452.48 28.16 8.45 - 40.17 12.14 761.27 - 1.16 ---------------------------------------------------------- 1,363.86 1,363.86 1,363.86 1,363.86 1,363.86 ======================== - 1.07 ---------------------------------------------------------- 1,402.45 1,402.45 1,402.45 1,402.45 1,402.45 ======================== - - ---------------------------------------------------------- 114.99 114.99 114.99 114.99 114.99 ======================== 462.80 234.34 ---------------------------------------------------------- 1,687.43 1,687.43 1,687.43 1,687.43 1,687.43 ======================== a) Security deposits are not in the nature of loans hence classified as part of other financial assets. E 12 : INCCCCCOOOOOMMMMME TAE TAE TAE TAE TAXXXXX E 12 : IN NONONONONOTTTTTE 12 : IN E 12 : IN E 12 : IN The major components of income tax expense for the years ended March 31, 2020 and March 31, 2019 are: SSSSStttttaaaaattttteeeeemememememennnnnt of p t of p t of p t of prrrrrofit a ofit a ofit a nd los nd los nd lossssss::::: ofit and los t of p ofit a nd los PPPPPrrrrrofit o ofit o ofit o r los r los r loss ses ses ses ses sectctctctctioioioioionnnnn ofit or los ofit o r los TTTTTaaaaax Ex x Exx Expppppeeeeennnnnsesesesese::::: x Exx Ex a) Current tax b) Adjustments in respect of current income tax of previous year c) Deferred tax r lossssss r los r los ofit o t of prrrrrofit o ofit o t of p se rse reeeeepppppooooorrrrrttttteeeeed id id id id in tn tn tn tn the she she she she stttttaaaaattttteeeeemememememennnnnt of p t of p se rse r IIIIIncncncncncooooome tme tme tme tme taaaaax exx exx exx exx expppppeeeeennnnnse r ofit or los r los ofit o t of p (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 774.67 31.76 144.15 --------------------------------------------------------- 950.58 950.58 950.58 950.58 950.58 ======================== 1,278.10 193.01 111.90 --------------------------------------------------------- 1,583.01 1,583.01 1,583.01 1,583.01 1,583.01 ======================== 120 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 OOOOOCCCCCI seI seI seI seI sectctctctctioioioioionnnnn he yearrrrr::::: he yea DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI dI dI dI dI duuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea Net loss/(gain) on remeasurements of defined benefit plans Income tax on items that will be reclassified subsequently to statement of profit and loss IIIIIncncncncncooooome tme tme tme tme taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo OCCCCCIIIII OOOOOtttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititity Sy Sy Sy Sy Seeeeectctctctctioioioioionnnnn DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in Rn Rn Rn Rn Retetetetetaaaaaiiiiinenenenened Ed Ed Ed Ed Eaaaaarrrrrnnnnniiiiinnnnngggggsssss::::: Implementation of Ind AS 116: Leases NNNNNet aet aet aet aet amoumoumoumoumounnnnnt cht cht cht cht chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo Otttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititityyyyy (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 (69.11) 346.57 --------------------------------------------------------- 277.46 277.46 277.46 277.46 277.46 ======================== (71.93) - --------------------------------------------------------- (71.93) (71.93) (71.93) (71.93) (71.93) ======================== As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 102.38 --------------------------------------------------------- 102.38 102.38 102.38 102.38 102.38 ======================== - --------------------------------------------------------- ----- ======================== ch 31, 2020 ch 31, 2020 ic taaaaax rx rx rx rx raaaaattttte foe foe foe foe for Mr Mr Mr Mr Maaaaarrrrrch 31, 2020 ic t ic t he accccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit mofit mofit mofit mofit muuuuullllltttttiiiiippppplllllieieieieied bd bd bd bd by Iy Iy Iy Iy Indndndndndiaiaiaiaia’’’’’s dos dos dos dos domesmesmesmesmestttttic t he ac he ac n of taaaaax exx exx exx exx expppppeeeeennnnnse ase ase ase ase and tnd tnd tnd tnd the ac n of t n of t (a)(a)(a)(a)(a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of t ch 31, 2020 ch 31, 2020 ic t he ac n of t ch 31, 2019. ch 31, 2019. aaaaand Mnd Mnd Mnd Mnd Maaaaarrrrrch 31, 2019. ch 31, 2019. ch 31, 2019. Accounting profit before tax from continuing operations (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 3,123.41 --------------------------------------------------------- As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 8,293.94 --------------------------------------------------------- ofit befoefoefoefoeforrrrre ie ie ie ie incncncncncooooome tme tme tme tme taaaaaxxxxx ofit b ofit b AAAAAccccccccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit b ofit b At India’s statutory income tax rate of 34.944% (March 31, 2019: 34.944%) Adjustments in respect of current income tax of previous years TTTTTaaaaax effe le) for tr tr tr tr taaaaax pux pux pux pux purprprprprposesosesosesosesoses::::: le) fo le/(tttttaaaaaxabxabxabxabxable) fo le) fo le/( ich arrrrre Ne Ne Ne Ne Nooooonnnnn-----dedededededdddductuctuctuctuctibibibibible/( le/( ich a ct of the ahe ahe ahe ahe amoumoumoumoumounnnnnttttts ws ws ws ws whhhhhich a ich a ct of t ct of t x effe x effe x effect of t le) fo le/( ich a ct of t x effe Expenses not deducted for tax purposes Income exempted from Income taxes Impact of tax at different tax rate and Others At the income tax rate of 34.944% (March 31, 2019: 34.944 %) Income tax expense reported in the statement of profit and loss Variance 1,091.44 31.76 284.07 (143.83) (312.85) --------------------------------------------------------- 950.58 950.58 --------------------------------------------------------- - 2,898.24 193.01 591.58 (684.86) (1,414.78) --------------------------------------------------------- 1,583.19 1,583.01 --------------------------------------------------------- - Pearl Global Industries Limited Annual Report 2019-20 121 Notes to consolidated financial statements for the year ended March 31, 2020 bbbbb))))) DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx::::: DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo he fohe follllllololololowwwwwiiiiinnnnnggggg ::::: he fohe fo Provision for employee benefits Expenses allowed in the year of payment Unaborsbed Losses Lease Liability Mark to Market Forward Contract Others he fohe follllllololololowwwwwiiiiinnnnnggggg ::::: he fohe fo DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo Property, plant and equipment Right to use assets Fair valuation of mutual fund Borrowing (EIR) Others MAT Credit Entitlement (A) (B) (C) ies) (Net)et)et)et)et) ies) (N ies) (N l deferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets/(s/(s/(s/(s/(llllliabiabiabiabiabilililililititititities) (N l defe l defe TTTTTotototototaaaaal defe ies) (N l defe (A-B+C) Recognised Net Deferred Tax Assets Recognised Net Deferred Tax Liabilities se/incncncncncooooomememememe::::: se/i se/i DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax exx exx exx exx expppppeeeeennnnnse/i se/i he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g : he fohe fo DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo Provision for employee benefits Expenses allowed in the year of payment Unaborsbed Losses Lease Liability Mark to Market Forward Contract Others (Amount in ` Lakh, unless otherwise stated) e sheetetetetet e she BBBBBaaaaalllllaaaaancncncncnce she e she e she As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 535.44 197.90 17.07 1,065.71 346.57 137.91 --------------------------------------------------------- 2,300.60 2,300.60 2,300.60 2,300.60 2,300.60 --------------------------------------------------------- 1,439.94 913.56 7.93 8.46 197.55 --------------------------------------------------------- 2,567.44 2,567.44 2,567.44 2,567.44 2,567.44 --------------------------------------------------------- 106.14 --------------------------------------------------------- (160.70) (160.70) (160.70) (160.70) (160.70) ======================== 87.61 87.61 87.61 87.61 87.61 (248.31) (248.31) (248.31) (248.31) (248.31) 489.60 134.25 543.17 - - 79.02 --------------------------------------------------------- 1,246.04 1,246.04 1,246.04 1,246.04 1,246.04 --------------------------------------------------------- 1,424.05 - - 9.23 315.29 --------------------------------------------------------- 1,748.57 1,748.57 1,748.57 1,748.57 1,748.57 --------------------------------------------------------- 266.07 --------------------------------------------------------- (236.46) (236.46) (236.46) (236.46) (236.46) ======================== 104.00 104.00 104.00 104.00 104.00 (340.46) (340.46) (340.46) (340.46) (340.46) (Amount in ` Lakh, unless otherwise stated) SSSSStttttaaaaattttteeeeemememememennnnnt of p nd lossssss nd los nd los ofit a t of prrrrrofit a ofit a t of p t of p ofit and los nd los ofit a t of p As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 45.84 63.65 (526.10) 1,065.71 346.57 58.89 --------------------------------------------------------- 1,054.56 14.44 119.34 (199.40) - - 113.21 --------------------------------------------------------- 47.59 122 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 se/incncncncncooooomememememe: : : : : (((((CCCCCooooonnnnntttttddddd.).).).).) se/i DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax exx exx exx exx expppppeeeeennnnnse/i se/i se/i DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g : he fohe fo Property, plant and equipment Right of use assets Fair valuation of mutual fund Fair valuation of investment in ES Borrowing (EIR) et deferrrrrrrrrreeeeed td td td td taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeee et defe et defe NNNNNet defe et defe Recognised in statement of profit and loss Recognised in other comprehensive income Recognised in Retained Earning - Implementation of Ind AS 116: Leases (Amount in ` Lakh, unless otherwise stated) SSSSStttttaaaaattttteeeeemememememennnnnt of p nd lossssss nd los nd los ofit a t of prrrrrofit a ofit a t of p t of p ofit and los nd los ofit a t of p As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 15.89 913.56 7.93 (0.77) (117.74) --------------------------------------------------------- 818.87 818.87 818.87 818.87 818.87 --------------------------------------------------------- (235.69) (235.69) (235.69) (235.69) (235.69) ======================== 144.15 (277.46) (102.38) 64.09 - (33.84) (2.57) 203.74 --------------------------------------------------------- 231.42 231.42 231.42 231.42 231.42 --------------------------------------------------------- 183.83 183.83 183.83 183.83 183.83 ======================== 111.90 71.93 - c) The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. d) MAT paid can be carried forward for a period of 15 years and can be set off against the future tax liabilities. MAT is recognised as a deferred tax asset only when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised. E 13 : NON CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX AX AX AX AX ASSSSSSSSSSEEEEETTTTT E 13 : NO E 13 : NO NONONONONOTTTTTE 13 : NO E 13 : NO Advance income tax (Net of provision of ` 1,288.03 lakh (March 31, 2019 : ` 1,032.42 lakh) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 763.99 452.22 --------------------------------------------------------- 763.99 763.99 763.99 763.99 763.99 ======================== --------------------------------------------------------- 452.22 452.22 452.22 452.22 452.22 ======================== E 14 : OTHHHHHEEEEER AR AR AR AR ASSSSSSSSSSEEEEETSTSTSTSTS E 14 : OT NONONONONOTTTTTE 14 : OT E 14 : OT E 14 : OT (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 (Unsecured, considered good, unless otherwise stated) Capital advances(Refer note no. 46(b) for capital commitments) Balance with government authorities Balance with government authorities - considered doubtful Less: Loss allowance Prepaid expenses Export incentive receivable Advances to related parties (Refer note no. 47) Advances to suppliers Other receivables TTTTTotototototaaaaal (l (l (l (l (AAAAA))))) 255.20 91.80 22.74 (22.74) 425.82 - - - - ---------------------------------------------------------- 772.82 772.82 772.82 772.82 772.82 ======================== 204.44 128.86 22.74 (22.74) 985.26 - - - 35.89 ---------------------------------------------------------- 1,354.45 1,354.45 1,354.45 1,354.45 1,354.45 ======================== - 1,736.80 - - 903.92 2,413.44 - 1,423.09 2,493.12 ---------------------------------------------------------- 8,970.37 8,970.37 8,970.37 8,970.37 8,970.37 ======================== - 1,593.89 - - 767.10 1,817.61 4.29 1,109.86 1,096.80 ---------------------------------------------------------- 6,389.55 6,389.55 6,389.55 6,389.55 6,389.55 ======================== Pearl Global Industries Limited Annual Report 2019-20 123 Notes to consolidated financial statements for the year ended March 31, 2020 E 15 : INVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEESSSSS E 15 : IN NONONONONOTTTTTE 15 : IN E 15 : IN E 15 : IN Raw materials Good in transit- raw material Work in progress Finished goods Scrap Stock Stores spares & others Less: Writedown of inventories (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 12,245.71 54.44 12,212.16 1,635.43 33.21 230.72 --------------------------------------------------------- 26,411.67 26,411.67 26,411.67 26,411.67 26,411.67 (24.34) --------------------------------------------------------- 26,387.33 26,387.33 26,387.33 26,387.33 26,387.33 ======================== As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 10,669.98 39.91 10,652.01 2,124.30 111.08 34.89 --------------------------------------------------------- 23,632.17 23,632.17 23,632.17 23,632.17 23,632.17 - --------------------------------------------------------- 23,632.17 23,632.17 23,632.17 23,632.17 23,632.17 ======================== (a) For information on inventories pledged as security by the group (refer note 21). (b) Inventories amounting to ` 1,507.80 (March 2019: ` 1,391.00) are used as collateral for part of the bank facilities. - In case of Pearl Global HK Limited. E 16 : TRAAAAADDDDDE RE RE RE RE RECECECECECEEEEEIIIIIVVVVVAAAAABBBBBLLLLLEEEEESSSSS E 16 : TR E 16 : TR NONONONONOTTTTTE 16 : TR E 16 : TR Considered good - secured Considered good - unsecured Trade receivables which have significant increase in credit risk Trade receivables - credit impaired Less: Loss allowance TTTTTotototototaaaaalllll s is as fos fos fos fos follllllololololowswswswsws::::: s is a s is a l debt l debt nd doubtfffffuuuuul debt nd doubt nd doubt ad aad a ad a he moveeeeemememememennnnnt it it it it in an an an an allllllololololowwwwwaaaaancncncncnce foe foe foe foe for br br br br bad a he mov he mov a)a)a)a)a) TTTTThe mov l debts is a ad and doubt s is a l debt nd doubt he mov he yearrrrr he yea he yea g of t g of t BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at bt bt bt bt beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t Loss Allowance during the year Trade receivables written off / written back during the year he yearrrrr he yea he yea nd of t BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at tt tt tt tt the ehe ehe ehe ehe end of t nd of t nd of the yea he yea nd of t (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 22,042.47 - 377.33 (377.33) --------------------------------------------------------- 22,042.47 22,042.47 22,042.47 22,042.47 22,042.47 --------------------------------------------------------- 374.33 2.99 - --------------------------------------------------------- 377.33 ======================== - 22,177.86 - 374.33 (374.33) --------------------------------------------------------- 22,177.86 22,177.86 22,177.86 22,177.86 22,177.86 --------------------------------------------------------- 5.15 369.18 - --------------------------------------------------------- 374.33 ======================== b) Trade receivables are non-interest bearing and are generally on terms of 45 - 60 days. c) The Group exposure to credit and currency risk, and loss allowances related to trade receivables are disclosed in note 44. E 17 : CASSSSSH AH AH AH AH ANNNNND CD CD CD CD CAAAAASSSSSH EQH EQH EQH EQH EQUUUUUIIIIIVVVVVAAAAALLLLLEEEEENNNNNTSTSTSTSTS E 17 : CA NONONONONOTTTTTE 17 : CA E 17 : CA E 17 : CA (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Balances with banks: Current account - - Deposits with original maturity of less than 3 months (refer note (a)) Cash on hand Cheque/drafts on hand 8,062.59 139.70 47.04 559.56 --------------------------------------------------------- 8,808.89 8,808.89 8,808.89 8,808.89 8,808.89 ======================== For the purpose of the statement of cash flow, the cash and cash equivalent are same given above. a) 7,156.93 949.52 85.39 1,242.28 --------------------------------------------------------- 9,434.12 9,434.12 9,434.12 9,434.12 9,434.12 ======================== 124 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 E 18 : OTHHHHHEEEEER BR BR BR BR BAAAAANNNNNK BK BK BK BK BAAAAALLLLLAAAAANNNNNCCCCCEEEEESSSSS E 18 : OT NONONONONOTTTTTE 18 : OT E 18 : OT E 18 : OT Earmarked balances with banks Unpaid dividend account Deposits with original maturity of more than 3 months but less than 12 months Deposits with original maturity of more than 12 months Balance with bank (Considered doubtful) Less: Loss allowance Less: Amount disclosed under “other financial assets” (Refer Note No. 11) (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 - - - - 31.85 2,136.98 26.83 1,680.88 265.11 - - ---------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 265.11 452.48 - - ---------------------------------------------------------- 452.48 452.48 452.48 452.48 452.48 452.48 - 0.03 (0.03) ---------------------------------------------------------- 2,168.83 2,168.83 2,168.83 2,168.83 2,168.83 - 761.27 0.03 (0.03) ---------------------------------------------------------- 2,468.98 2,468.98 2,468.98 2,468.98 2,468.98 761.27 ---------------------------------------------------------- - ======================== ---------------------------------------------------------- - ======================== ---------------------------------------------------------- 2,168.83 ======================== ---------------------------------------------------------- 1,707.71 ======================== a) Out of the total Fixed Deposits, the fixed deposit with carrying value of ` 1,041.21 lakh (March 31, 2019 ` 2,994.13 lakh) are pledged as security with various banks. E 19 : SHAAAAARRRRRE CAE CAE CAE CAE CAPPPPPIIIIITTTTTAAAAALLLLL E 19 : SH E 19 : SH NONONONONOTTTTTE 19 : SH E 19 : SH AAAAAuuuuuttttthohohohohorrrrriseiseiseiseiseddddd 51,440,000* (March 31, 2019: 51,440,000) equity shares of ` 10 each 10,000* (March 31, 2019: 10,000) 4% Non Cumulative Redeemable Preference Shares of ` 10 each 3,256,000* (March 31, 2019: 3,256,000) 10.5% Non Cumulative Redeemable Preference Shares of ` 100 each IIIIIssssssssssueueueueueddddd, s, s, s, s, subscubscubscubscubscrrrrribibibibibeeeeed ad ad ad ad and pnd pnd pnd pnd paaaaaid uid uid uid uid uppppp 21,663,937* (March 31, 2019: 21,663,937) Equity Shares of ` 10 each fully paid up * Number of Shares are given in absolute numbers. n of issssssueueueueued ad ad ad ad and snd snd snd snd subscubscubscubscubscrrrrribibibibibeeeeed shd shd shd shd shaaaaarrrrre ce ce ce ce caaaaapppppitititititaaaaal al al al al as as as as as at yea a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of is t year er er er er end :nd :nd :nd :nd : t yea t yea n of is n of is t yea n of is e of ````` 10 each is 10 each issssssueueueueueddddd, S, S, S, S, Subscubscubscubscubscrrrrribibibibibeeeeed ad ad ad ad and fnd fnd fnd fnd fuuuuulllllly ply ply ply ply paaaaaididididid 10 each is 10 each is EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre of e of e of 10 each is e of BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 Changes during the year BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Changes during the year BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 5,144.00 1.00 3,256.00 5,144.00 1.00 3,256.00 --------------------------------------------------------- 8,401.00 8,401.00 8,401.00 8,401.00 8,401.00 --------------------------------------------------------- --------------------------------------------------------- 8,401.00 8,401.00 8,401.00 8,401.00 8,401.00 --------------------------------------------------------- 2,166.39 2,166.39 --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 ======================== . of shaaaaarrrrreseseseses . of sh NNNNNooooo. of sh . of sh . of sh (((((iiiiin ‘n ‘n ‘n ‘n ‘lllllaaaaakkkkkhhhhh’)’)’)’)’) --------------------------------------------------------- 216.639 - --------------------------------------------------------- 216.639 216.639 216.639 216.639 216.639 --------------------------------------------------------- - --------------------------------------------------------- 216.639 216.639 216.639 216.639 216.639 --------------------------------------------------------- --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 ======================== AAAAAmoumoumoumoumounnnnnttttt ( ( ( ( (````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) --------------------------------------------------------- 2,166.39 - --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 --------------------------------------------------------- - --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 --------------------------------------------------------- Pearl Global Industries Limited Annual Report 2019-20 125 Notes to consolidated financial statements for the year ended March 31, 2020 ached td td td td to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses::::: ache s/ rigigigigighhhhhttttts as as as as attttttttttache ache s/ rs/ r s/ r bbbbb))))) TTTTTeeeeerrrrrmmmmms/ r ache The Group has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share. The Group declares and pays dividends in Indian rupees. The 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 of the Group, the holders of equity shares will be entitled to receive remaining assets of the Group, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. For the year ended March 31, 2020, the Board of Directors has not proposed any dividend for distribution to shareholders. For the year ended March 31, 2019, the amount of per share dividend proposed as distribution to equity shareholders was ` 3.00 per share. n 5% shaaaaarrrrreseseseses n 5% sh n 5% sh g morrrrre te te te te thhhhhaaaaan 5% sh g mo rs holdldldldldiiiiinnnnng mo g mo rs ho ils of shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ho rs ho ils of sh ils of sh ccccc))))) DDDDDetetetetetaaaaails of sh n 5% sh g mo rs ho ils of sh me of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelderrrrr me of Sh me of Sh NNNNNaaaaame of Sh me of Sh Mrs. Payel Seth Mr. Deepak Seth Mr. Pulkit Seth Mr. Sanjiv Dhireshbhai shah TTTTTotototototaaaaalllll E 20 : OTHHHHHEEEEER EQR EQR EQR EQR EQUUUUUIIIIITTTTTYYYYY E 20 : OT E 20 : OT NONONONONOTTTTTE 20 : OT E 20 : OT General Reserve Securities Premium Capital Redemption Reserve Amalgamation Reserve Foreign Currency Translation Reserve Change in investment through other comprehensive income Retained Earnings Cash Flow Hedge Reserve ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 . of shaaaaarrrrreseseseses . of sh . of sh NNNNNooooo. of sh . of sh . of shaaaaarrrrreseseseses . of sh . of sh HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % NNNNNooooo. of sh . of sh ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 4,413,635 2,862,145 6,947,621 1,553,274 ---------------------------------------------------------- 15,776,675 15,776,675 15,776,675 15,776,675 15,776,675 ======================== 20.37 13.21 32.07 7.17 ---------------------------------------------------------- 72.82 72.82 72.82 72.82 72.82 ======================== 4,413,635 2,862,145 6,947,621 - ---------------------------------------------------------- 14,223,401 14,223,401 14,223,401 14,223,401 14,223,401 ======================== HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % 20.37 13.21 32.07 - ---------------------------------------------------------- 65.65 65.65 65.65 65.65 65.65 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 4,204.36 17,103.90 95.00 625.95 4,623.26 (105.34) 21,989.10 (645.23) --------------------------------------------------------- 47,891.00 47,891.00 47,891.00 47,891.00 47,891.00 ======================== 4,204.36 17,103.90 95.00 625.95 2,036.96 (67.05) 20,821.23 - --------------------------------------------------------- 44,820.35 44,820.35 44,820.35 44,820.35 44,820.35 ======================== I. For Movement during the period in Other Equity, refer “Statement of Changes in Equity”. ose of reseeseeseeseeserrrrrvvvvveseseseses ose of r nd purprprprprpose of r ose of r nd pu IIIIII.I.I.I.I. NNNNNaaaaatttttuuuuurrrrre ae ae ae ae and pu nd pu ose of r nd pu a)a)a)a)a) GGGGGeeeeenenenenenerrrrraaaaal rl rl rl rl reseeseeseeseeserrrrrvvvvveeeee The Group has transferred a portion of the net profit of the Group before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013. bbbbb))))) SSSSSeeeeecucucucucurrrrrititititities p ies prrrrreeeeemmmmmiuiuiuiuiummmmm ies pies p ies p The amount received in excess of face value of the equity shares is recognised in securities premium. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013. ccccc))))) CCCCCaaaaapppppitititititaaaaal rl rl rl rl reeeeedededededemmmmmptptptptptioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee This Reserve has been created at the time of merger of other companies in earlier years in accordance with the provisions of the Companies Act, 2013. ddddd))))) AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee This Reserve has been created at the time of merger of other companies in earlier years in accordance with the provisions of the Companies Act, 2013. 126 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 e)e)e)e)e) FFFFFooooorrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy ty ty ty ty trrrrraaaaannnnnslslslslslaaaaatttttioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee Foreign currency translation reserve is created on translation of financial statements of non integral foreign operation at the reporting date. fffff ))))) RRRRRetetetetetaaaaaiiiiinenenenened ead ead ead ead earrrrrnnnnniiiiinnnnngggggsssss Retained earnings are the profits that the Group has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Out of the above, reserve on account of revaluation of assets of ` 398.64 lakh (March 31, 2019 ` 396.76 lakh) is not available for distribution. ggggg ))))) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee This reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. This reserve will be reclassified to statement of profit and loss only when the hedged transaction affects the profit or loss. E 21 : LONNNNNG TEG TEG TEG TEG TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS E 21 : LO E 21 : LO NONONONONOTTTTTE 21 : LO E 21 : LO From Banks (Secured) Corporate Loan [Refer Note a(i), a(ii), a(iii), a(iv) & a(v)] - - Vehicle Loans [Refer Note a(vi)] From Financials Institutional (Secured) - Vehicle Loans [Refer Note a(vi)] From others - unsecured Less: Amount disclosed under other financial liabilities as ‘Current maturities of long-term borrowings’(refer note 22) (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 9,695.14 93.22 7,819.91 48.93 2,639.35 91.00 1,560.70 81.29 112.39 82.93 ---------------------------------------------------------- 9,983.68 9,983.68 9,983.68 9,983.68 9,983.68 - 106.50 131.42 ---------------------------------------------------------- 8,106.76 8,106.76 8,106.76 8,106.76 8,106.76 - 38.85 - ---------------------------------------------------------- 2,769.20 2,769.20 2,769.20 2,769.20 2,769.20 2,769.20 38.90 - ---------------------------------------------------------- 1,680.89 1,680.89 1,680.89 1,680.89 1,680.89 1,680.89 ---------------------------------------------------------- 9,983.68 9,983.68 9,983.68 9,983.68 9,983.68 ======================== ---------------------------------------------------------- 8,106.76 8,106.76 8,106.76 8,106.76 8,106.76 ======================== ---------------------------------------------------------- ----- ======================== ---------------------------------------------------------- ----- ======================== e of Seeeeecucucucucurrrrrititititity foy foy foy foy for Sr Sr Sr Sr Seeeeecucucucucurrrrreeeeed Ld Ld Ld Ld Loooooaaaaannnnns as as as as arrrrre :e :e :e :e : e of S a)a)a)a)a) TTTTThe nhe nhe nhe nhe naaaaatttttuuuuurrrrre of S e of S e of S i) Corporate Term Loan (Kotak Bank) is secured by charge first and exclusive charge over fixed assets and plant and machinery. ii) Corporate Term Loan (Andhra Bank) is secured by first and exclusive charge on the entire fixed assets including machineries, land and building at Chennai and Bangalore Plant of the Company. In addition, Equitable Mortgage of Land & Building located at Survey No- 262A in Aryapakkam Village at Kancheepuram measuring 4.8053 acre in Company’s name. iii) Corporate Term Loan (HDFC Bank) is secured by exclusive charge over movable fixed aseets of the Company, both present and future. The loan is also secured by personal guarantee of one of the Promoter Director of the Company and exclusive charge by way of equitable mortagage on industrial plot no.446, Udyog Vihar, Phase- V, Gurugram, Haryana. iv) Corporate Term Loan (IndusInd Bank) is secured by exclusive charge over movable fixed aseets of the Company, both present and future. The loan is secured by exclusive charge by way of equitable mortagage on industrial Plot no.51, Sector-32, Gurugram, Haryana. v) Corporate Term Loan (RBL Bank) is secured by exclusive charge over movable fixed aseets of the Company, both present and future. The loan is secured by exclusive charge by way of equitable mortagage on Industrial Plot no.751, Pace City, Sector-37, Gurugram, Haryana. vi) BDT Term Loan from HSBC in case of Norp Knit Industries Limited) are secured by first charge over Company’s plant & machinery, stocks of raw material, wip, finished goods, book debts & receivables, charge over deposits & stand by letter of credit from Holding Company. Pearl Global Industries Limited Annual Report 2019-20 127 Notes to consolidated financial statements for the year ended March 31, 2020 vii) The loan facilities (in case Pearl Global (HK) Limited) are secured by the Group’s leasehold land & buildings, machineries and equipment, inventories, trade receivables together with director’s personal guarantee. viii) Vehicle loans are secured against hypothecation of respective vehicles. ofileofile bbbbb))))) MMMMMaaaaatttttuuuuurrrrrititititity Py Py Py Py Prrrrrofile ofileofile PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of se ofile of secucucucucurrrrreeeeed td td td td teeeeerrrrrm lom lom lom lom loaaaaannnnnsssss ofile of se ofile of se ofile of se s set out bt bt bt bt beloeloeloeloelow :w :w :w :w : s set ou s set ou is ais ais ais ais as set ou s set ou Term loan from Banks and Financial Institution are repayable in monthly/quarterly/yearly installments Vehicle loans from banks and financial institutions are repayable in monthly installments 2020-21 2020-21 2020-21 2020-21 2020-21 2021-22 2021-22 2021-22 2021-22 2021-22 2022-23 2022-23 2022-23 2022-23 2022-23 BBBBBeeeeeyoyoyoyoyondndndndnd 2023-24 2023-24 2023-24 2023-24 2023-24 2,639.35 2,965.91 2,364.78 4,364.45 129.85 64.75 77.35 63.52 c) The term loan(s) carries rate of interest ranging between 9.75% to 12.00% per annum. E 21A : SHOOOOORRRRRT TET TET TET TET TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS E 21A : SH E 21A : SH NONONONONOTTTTTE 21A : SH E 21A : SH Working capital loan from banks(secured) Rupee loan [refer note (a) above] - (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 25,715.32 --------------------------------------------------------- 25,715.32 25,715.32 25,715.32 25,715.32 25,715.32 ======================== 23,486.07 --------------------------------------------------------- 23,486.07 23,486.07 23,486.07 23,486.07 23,486.07 ======================== a) The nature of Security for short term borrowings are as under: - First pari-passu charge on movable fixed assets and whole of current assets including stocks of raw material, semi finished goods, finished goods, book debts, consumable stores and spares. - Mortgage of the properties situated at Plot No. H -597-603, RICCO Industrial Area, Bhiwadi, Distt. Alwar, Rajasthan and Plot No 16-17, Phase VI, Udyog Vihar,Gurgoan (Haryana). - - Fixed Deposit of ` 58 lakh (March 31, 2019: ` 58 lakh) Personal Guarantee by the promoter director of the Company. (Amount in ` Lakh, unless otherwise stated) E 22 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL LL LL LL LL LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS E 22 : OT NONONONONOTTTTTE 22 : OT E 22 : OT E 22 : OT NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 Security deposit Book overdraft Current maturities of long-term borrowings (refer no. 21) Interest accrued but not due on borrowings Unpaid dividends (Refer Note b) Creditors for capital goods Financial Liabilites at Fair Value through OCI-Cash Flow Hedge Others 246.97 - - - - - - - ---------------------------------------------------------- 246.97 246.97 246.97 246.97 246.97 ======================== 222.00 - - - - - - - ---------------------------------------------------------- 222.00 222.00 222.00 222.00 222.00 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 - 26.87 2,769.20 37.48 31.85 30.21 991.80 1,830.22 ---------------------------------------------------------- 5,717.63 5,717.63 5,717.63 5,717.63 5,717.63 ======================== MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 - 150.48 1,680.89 24.67 26.83 849.25 - 2,424.77 ---------------------------------------------------------- 5,156.89 5,156.89 5,156.89 5,156.89 5,156.89 ======================== 128 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 NNNNNotototototeseseseses::::: a) The Group’s exposure to market and liquidity risk related to other financial liabilities is disclosed in note 44. b) There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at the year end. E 23 : PROVOVOVOVOVIIIIISSSSSIIIIIOOOOONSNSNSNSNS E 23 : PR NONONONONOTTTTTE 23 : PR E 23 : PR E 23 : PR nefitsssss nefit nefit PPPPPrrrrrovovovovovisioisioisioisioision fon fon fon fon for er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit Provision for compensated absenses (refer to note 39) Provision for gratuity (refer to note 39) Other employee benefits E 24 : OTHHHHHEEEEER LR LR LR LR LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS E 24 : OT E 24 : OT NONONONONOTTTTTE 24 : OT E 24 : OT Advance received against sale of land Deferred government grant Deferred rental income Statutory dues Others (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 554.06 1,456.54 69.12 ---------------------------------------------------------- 2,079.72 2,079.72 2,079.72 2,079.72 2,079.72 ======================== 717.04 1,345.94 49.62 ---------------------------------------------------------- 2,112.60 2,112.60 2,112.60 2,112.60 2,112.60 ======================== 23.96 44.44 - ---------------------------------------------------------- 68.40 68.40 68.40 68.40 68.40 ======================== 23.02 58.65 - ---------------------------------------------------------- 81.67 81.67 81.67 81.67 81.67 ======================== (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 2,963.62 8.58 25.71 - - ---------------------------------------------------------- 2,997.91 2,997.91 2,997.91 2,997.91 2,997.91 ======================== 3,010.49 9.58 56.89 - 232.67 ---------------------------------------------------------- 3,309.63 3,309.63 3,309.63 3,309.63 3,309.63 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 - 145.61 31.92 632.95 46.87 ---------------------------------------------------------- 857.35 857.35 857.35 857.35 857.35 ======================== ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 - 145.61 32.57 678.55 9.93 ---------------------------------------------------------- 866.66 866.66 866.66 866.66 866.66 ======================== E 25 : TRAAAAADDDDDE PE PE PE PE PAAAAAYYYYYAAAAABBBBBLLLLLEEEEE E 25 : TR NONONONONOTTTTTE 25 : TR E 25 : TR E 25 : TR Total outstanding dues of micro and small enterprises Total outstanding dues of creditors other than micro and small enterprises (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 331.05 17,775.62 --------------------------------------------------------- 18,106.67 18,106.67 18,106.67 18,106.67 18,106.67 ======================== 63.70 18,042.77 --------------------------------------------------------- 18,106.47 18,106.47 18,106.47 18,106.47 18,106.47 ======================== a) Trade payable are generally on a credit of not more than 90 days except in case of Micro & Small Enterprises which are settled within 45 days. b) This amount includes amount due to related parties is ` 0.92 lakh (March 31, 2019: ` 16.85 lakh) (refer note 47) c) As per Schedule III of the Companies Act, 2013 and notification number GSR 719 (E) dated November 16, 2007 & as certified by the Management, the amount due to Micro & Small Enterprises as defined in Micro, Small and Medium Enterprises Development Act, 2006 is as under : Pearl Global Industries Limited Annual Report 2019-20 129 Notes to consolidated financial statements for the year ended March 31, 2020 ct, 2006 arrrrre ie ie ie ie inclnclnclnclncludeudeudeudeuded id id id id in tn tn tn tn the the the the the trrrrradeadeadeadeade ct, 2006 a s definenenenened ud ud ud ud undendendendender Mr Mr Mr Mr MSSSSSMMMMMEEEEED AD AD AD AD Act, 2006 a ct, 2006 a s defi s defi ises a ues to Mo Mo Mo Mo Micicicicicrrrrro ao ao ao ao and Snd Snd Snd Snd Smmmmmaaaaallllll El El El El Ennnnnttttteeeeerprprprprprrrrrises a ises a ues t ues t ils of d DDDDDetetetetetaaaaails of d ils of d ises as defi ils of dues t ct, 2006 a s defi ises a ues t ils of d t Grouououououp abp abp abp abp abovovovovoveeeee::::: t Gr pppppaaaaayyyyyababababable ale ale ale ale at Gr t Gr t Gr (i) The amount due thereon remaining unpaid to any supplier at the end of each accounting year - - Principal Interest (ii) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during each accounting year. (iii) The amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006. (iv) The amount of interest accrued and remaining unpaid at the end of each accounting year (v) The amount of further interest remaining due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act 2006 331.05 - - - - - 63.70 - - - - - d) Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Group regarding the status of registration of such vendors under the said Act and as per the intimation received from them on requests made by the Group. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date except disclosed above. e) The Group’s exposure to market and liquidity risk related to trade payables is disclosed in note 44. E 26 : LIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES FS FS FS FS FOOOOOR CUR CUR CUR CUR CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX (NX (NX (NX (NX (NEEEEETTTTT))))) E 26 : LI E 26 : LI NONONONONOTTTTTE 26 : LI E 26 : LI Provision for income tax (Net of advance tax ` 717.45 lakh (March 31, 2019 ` 1,053.97 lakh)) E 27 : REVVVVVEEEEENNNNNUUUUUE FRE FRE FRE FRE FROOOOOM OM OM OM OM OPPPPPEEEEERRRRRAAAAATTTTTIIIIIOOOOONSNSNSNSNS E 27 : RE NONONONONOTTTTTE 27 : RE E 27 : RE E 27 : RE Sale of Product Job Receipts Other Operating Revenues ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss ue frue fr RRRRReeeeevvvvveeeeennnnnue fr a)a)a)a)a) PPPPPeeeeerforforforforforrrrrmmmmmaaaaancncncncnce oe oe oe oe obbbbbllllligigigigigaaaaatttttioioioioionnnnn (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 57.23 224.13 --------------------------------------------------------- 57.23 57.23 57.23 57.23 57.23 ======================== --------------------------------------------------------- 224.13 224.13 224.13 224.13 224.13 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 163,325.79 129.54 5,057.25 --------------------------------------------------------- 168,512.58 168,512.58 168,512.58 168,512.58 168,512.58 ======================== 170,770.02 66.57 4,913.19 --------------------------------------------------------- 175,749.78 175,749.78 175,749.78 175,749.78 175,749.78 ======================== Revenue is recognised upon transfer of control of products and customers. During the year, The Group has not entered into long term contracts with Customers and accordingly disclsoure of unsatisfied or remaining performance obligation (which is affected by several factors like changes in scope of Contracts, periodic revalidations, adjustment for revenue that has not been materialized, tax laws etc.) is not applicable to the Group. 130 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 b) Disaggregation of revenue: The table below presents disaggregated revenues from contracts with customers on the basis of geographical spread of the operations of the Group. The Group believes that this disaggregation best depicts how the nature, amount of revenues and cash flows are affected by market and other economic factors: RRRRReeeeevvvvveeeeennnnnue bue bue bue bue baaaaasesesesesed od od od od on Gn Gn Gn Gn Geeeeeooooogggggrrrrraaaaappppphhhhhyyyyy India Outside India ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss ue frue fr RRRRReeeeevvvvveeeeennnnnue fr (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 8,403.09 160,109.49 --------------------------------------------------------- 168,512.58 168,512.58 168,512.58 168,512.58 168,512.58 ======================== 6,019.11 169,730.67 --------------------------------------------------------- 175,749.78 175,749.78 175,749.78 175,749.78 175,749.78 ======================== ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnns ws ws ws ws wititititith ch ch ch ch cooooonnnnntttttrrrrractactactactacteeeeed pd pd pd pd prrrrriciciciciceeeee ue frue fr n of reeeeevvvvveeeeennnnnue fr n of r n of r ccccc))))) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of r n of r (Amount in ` Lakh, unless otherwise stated) Contracted Price Less: Sales Returns Rebates and discounts E 28 : OTHHHHHEEEEER IR IR IR IR INNNNNCCCCCOOOOOMMMMMEEEEE E 28 : OT E 28 : OT NONONONONOTTTTTE 28 : OT E 28 : OT Interest income - On Fixed deposits - On loans and advances - On income tax refund Other non-operating income: Rental income Foreign exchange fluctuation Provision for doubtful debt & advances written back Amortisation of deferred rental income Profit on sale of current investment - mutual fund Profit on mark to market forward contracts Fair value gain on investments measured at fair value through profit and loss (net) Miscellaneous income he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 168,557.47 175,759.55 44.89 - --------------------------------------------------------- 168,512.58 168,512.58 168,512.58 168,512.58 168,512.58 ======================== 9.67 0.10 --------------------------------------------------------- 175,749.78 175,749.78 175,749.78 175,749.78 175,749.78 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 967.85 174.64 0.16 980.53 1,700.72 - 32.08 73.79 - 29.41 750.51 156.55 - 814.53 715.64 37.87 31.67 218.20 247.24 - 946.31 --------------------------------------------------------- 4,905.49 4,905.49 4,905.49 4,905.49 4,905.49 ======================== 420.61 --------------------------------------------------------- 3,392.82 3,392.82 3,392.82 3,392.82 3,392.82 ======================== Pearl Global Industries Limited Annual Report 2019-20 131 Notes to consolidated financial statements for the year ended March 31, 2020 E 29 : COSSSSST OT OT OT OT OF RF RF RF RF RAAAAAW MW MW MW MW MAAAAATTTTTEEEEERRRRRIIIIIAAAAAL CL CL CL CL COOOOONSNSNSNSNSUUUUUMMMMMEEEEEDDDDD E 29 : CO NONONONONOTTTTTE 29 : CO E 29 : CO E 29 : CO RRRRRaaaaaw Mw Mw Mw Mw Maaaaattttteeeeerrrrriaiaiaiaialllll Balance at the beginning of the Year Add:- Purchases during the year Add: Impact of exchange fluctuation & re-instatement Less:- Balance at the end of the Year Total Raw Material Consumption E 30 : PURRRRRCCCCCHHHHHAAAAASSSSSE OE OE OE OE OF SF SF SF SF STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE E 30 : PU E 30 : PU NONONONONOTTTTTE 30 : PU E 30 : PU Purchases during the year (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 10,669.98 77,404.20 374.97 --------------------------------------------------------- 88,449.15 12,245.71 --------------------------------------------------------- 76,203.44 76,203.44 76,203.44 76,203.44 76,203.44 ======================== 10,189.10 76,378.27 323.18 --------------------------------------------------------- 86,890.55 10,669.98 --------------------------------------------------------- 76,220.57 76,220.57 76,220.57 76,220.57 76,220.57 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 5,210.29 --------------------------------------------------------- 5,210.29 5,210.29 5,210.29 5,210.29 5,210.29 ======================== 12,954.77 --------------------------------------------------------- 12,954.77 12,954.77 12,954.77 12,954.77 12,954.77 ======================== (Amount in ` Lakh, unless otherwise stated) E 31 :CHCHCHCHCHAAAAANNNNNGGGGGEEEEES IS IS IS IS IN IN IN IN IN INNNNNVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEES OS OS OS OS OF FIF FIF FIF FIF FINNNNNIIIIISSSSSHHHHHEEEEED GD GD GD GD GOOOOOOOOOODDDDDSSSSS,,,,, E 31 : E 31 : NONONONONOTTTTTE 31 : E 31 : W W W W WOOOOORRRRRK IK IK IK IK IN PN PN PN PN PRRRRROOOOOGGGGGRRRRREEEEESSSSSS AS AS AS AS ANNNNND SD SD SD SD STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 he yearrrrr he yea he yea g of t g of t ies at tt tt tt tt the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t ies a ies a IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a g of the yea he yea g of t ies a Work-in-progress Finished goods Scrap Stock Add: Impact of exchange fluctuation & re-instatement(Net) IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a he yearrrrr he yea he yea nd of t ies at tt tt tt tt the ehe ehe ehe ehe end of t nd of t ies a ies a nd of the yea he yea nd of t ies a Work-in-progress Finished goods Scrap Stock se in in in in in innnnnvvvvveeeeennnnntttttooooorrrrry (y (y (y (y (A-A-A-A-A-B)B)B)B)B) se i se) / decccccrrrrreaeaeaeaease i se i se) / de (I(I(I(I(Incncncncncrrrrreaeaeaeaease) / de se) / de se i se) / de (((((AAAAA))))) (B)(B) (B)(B) (B) 10,652.01 2,124.30 111.08 386.27 --------------------------------------------------------- 13,273.67 13,273.67 13,273.67 13,273.67 13,273.67 --------------------------------------------------------- 12,212.17 1,611.09 33.21 --------------------------------------------------------- 13,856.47 13,856.47 13,856.47 13,856.47 13,856.47 --------------------------------------------------------- (582.80) (582.80) (582.80) (582.80) (582.80) ======================== 6,299.74 4,002.41 286.67 457.57 --------------------------------------------------------- 11,046.39 11,046.39 11,046.39 11,046.39 11,046.39 --------------------------------------------------------- 10,652.01 2,124.30 111.08 --------------------------------------------------------- 12,887.39 12,887.39 12,887.39 12,887.39 12,887.39 --------------------------------------------------------- (1,841.00) (1,841.00) (1,841.00) (1,841.00) (1,841.00) ======================== 132 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 E 32 : EMPPPPPLLLLLOOOOOYYYYYEEEEEE BE BE BE BE BEEEEENNNNNEEEEEFIFIFIFIFITS ETS ETS ETS ETS EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE E 32 : EM NONONONONOTTTTTE 32 : EM E 32 : EM E 32 : EM Salaries, Wages & Bonus Contribution to Provident and Other fund Gratuity expense (refer note 39) Compensated absences (refer note 39) Staff Training & Welfare Expenses E 33 : FINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOSSSSSTTTTT E 33 : FI E 33 : FI NONONONONOTTTTTE 33 : FI E 33 : FI Interest Expense - On Term loans,Cash Credit & Working Capital Facilities - Delayed Payment of Taxes - - Others Unwinding of discount on security deposit Other borrowing cost lease liabilities E 34 : DEPPPPPRRRRRECECECECECIIIIIAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD AMOMOMOMOMORRRRRTTTTTIIIIIZZZZZAAAAATTTTTIIIIIOOOOON EN EN EN EN EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE E 34 : DE E 34 : DE NONONONONOTTTTTE 34 : DE E 34 : DE Depreciation of poroperty, plant and equipment (refer note no. 4) Depreciation & amortisation of Investment Properties (refer note no. 6) Amortisation of intangible assets (refer note no. 8) Amortisation of Right-to-use assets (refer note no. 49) (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 36,675.52 923.57 420.86 557.32 748.30 --------------------------------------------------------- 39,325.57 39,325.57 39,325.57 39,325.57 39,325.57 ======================== 33,619.69 810.19 552.14 661.36 356.77 --------------------------------------------------------- 36,000.15 36,000.15 36,000.15 36,000.15 36,000.15 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 2,709.71 1.74 810.19 17.34 30.32 631.74 --------------------------------------------------------- 4,201.04 4,201.04 4,201.04 4,201.04 4,201.04 ======================== 2,279.95 15.09 - 118.79 26.39 597.08 --------------------------------------------------------- 3,037.30 3,037.30 3,037.30 3,037.30 3,037.30 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 2,767.44 85.75 47.75 1,303.46 --------------------------------------------------------- 4,204.40 4,204.40 4,204.40 4,204.40 4,204.40 ======================== 2,456.18 85.76 47.53 - --------------------------------------------------------- 2,589.48 2,589.48 2,589.48 2,589.48 2,589.48 ======================== Pearl Global Industries Limited Annual Report 2019-20 133 Notes to consolidated financial statements for the year ended March 31, 2020 E 35 : OTHHHHHEEEEER ER ER ER ER EXXXXXPPPPPEEEEENSNSNSNSNSEEEEESSSSS E 35 : OT NONONONONOTTTTTE 35 : OT E 35 : OT E 35 : OT Manufacturing Expense Consumption of Stores & Spare Parts Power & fuel Rent Rates & Taxes Travelling & Conveyance Freight & clearing Charges Claim to Buyers Repair & Maintenance Plant & Machinery Buildings Other Commission Legal & Professional Expenses Security Charges Bank charges Insurance Expenses Payment to the Auditors (Refer note ‘a’ below) Bad debts and doubtful advances written off Allowance for bad and doubtful debts Corporate social responsibility Loss on mark to market forward contracts Fair value loss on financial assets measured at fair value through profit and loss Miscellaneous Expenses TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 16,679.11 1,243.96 2,317.50 805.00 117.26 1,546.44 3,925.85 1,356.27 76.87 9.07 982.83 691.70 6,202.54 467.08 1,051.72 362.56 81.59 26.31 47.92 22.15 462.80 - 3,187.47 --------------------------------------------------------- 41,664.00 41,664.00 41,664.00 41,664.00 41,664.00 ======================== 18,571.61 1,013.26 2,375.82 2,383.03 193.18 1,462.23 4,715.33 1,428.01 100.14 14.77 959.66 596.22 5,048.38 428.24 1,216.69 290.26 58.22 103.78 391.92 22.76 - 133.64 2,102.37 --------------------------------------------------------- 43,609.52 43,609.52 43,609.52 43,609.52 43,609.52 ======================== rs is as fos fos fos fos follllllololololowswswswsws::::: rs is a ade to ao ao ao ao audududududitititititooooors is a rs is a ade t ils of paaaaayyyyymememememennnnnt mt mt mt mt made t ade t ils of p a) DDDDDetetetetetaaaaails of p ils of p rs is a ade t ils of p (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaayyyyymememememennnnnt tt tt tt tt to ao ao ao ao audududududitititititooooorsrsrsrsrs As aAs aAs aAs aAs audududududitititititooooorrrrr::::: - - Other Services - Statutory audit fee Reimbursement of expenses he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 64.04 10.00 7.55 --------------------------------------------------------- 81.59 81.59 81.59 81.59 81.59 ======================== 43.66 7.44 7.12 --------------------------------------------------------- 58.22 58.22 58.22 58.22 58.22 ======================== b) Miscellaneous expenses includes expense towards purchase of Electroral Bonds amounting to ` 160.00 Lakh ( March 31, 2019: Nil ) from State Bank of India under the Scheme - ‘The Electoral Bond Scheme, 2018’ notified by the Central Government vide Gazette Notification No. 20 dated January 2, 2018 by the Holding Company. 134 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 E 36 : EXCCCCCEEEEEPPPPPTTTTTIIIIIOOOOONNNNNAAAAAL ITL ITL ITL ITL ITEEEEEMMMMMSSSSS E 36 : EX NONONONONOTTTTTE 36 : EX E 36 : EX E 36 : EX Profit on Sale of Fixed Assets (Net) Property, plant and equipment written off Impairment of Goodwill (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 (156.63) 0.23 225.12 --------------------------------------------------------- 68.72 68.72 68.72 68.72 68.72 ======================== (1,722.12) ----- --------------------------------------------------------- (1,722.12) (1,722.12) (1,722.12) (1,722.12) (1,722.12) ======================== a) For March 31, 2020, (Profit)/loss on sale of fixed assets includes loss on sale of tangile assets of ` 41.19 lakh (March 31, 2019: ` 36.97 lakh), profit on sale of tangible assets of ` 13.35 lakh and profit on account of compulsory acquisition of land by the Central Government under National Highway Act, 1956 of ` 184.47 lakh (March 31, 2019: ` 1756.25 lakh). E 37 : COCOCOCOCOMMMMMPPPPPOOOOONNNNNEEEEENNNNNTS OTS OTS OTS OTS OF OF OF OF OF OTTTTTHHHHHEEEEERRRRR E 37 : E 37 : NONONONONOTTTTTE 37 : E 37 : CCCCCOOOOOMMMMMPPPPPRRRRREEEEEHHHHHEEEEENSNSNSNSNSIIIIIVVVVVE IE IE IE IE INNNNNCCCCCOOOOOMMMMMEEEEE AAAAA (((((iiiii))))) BBBBB (((((iiiii))))) nd lossssss nd los nd los ofit a ofit a sified td td td td to po po po po prrrrrofit a sifie sifie l not be re re re re reeeeeclclclclclaaaaassssssifie l not b l not b IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill not b ofit and los nd los ofit a sifie l not b Re-measurement gains/ (losses) on defined benefit plans Income tax expense nd lossssss nd los nd los ofit a ofit a sified td td td td to po po po po prrrrrofit a sifie sifie IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill bl bl bl bl be re re re re reeeeeclclclclclaaaaassssssifie ofit and los nd los ofit a sifie Foreign exchange translation reserve Fair valuation of investment in mutual fund Hedging Reserve through OCI Income tax expense E 38 : EARRRRRNNNNNIIIIINNNNNGGGGGS PS PS PS PS PEEEEER SR SR SR SR SHHHHHAAAAARRRRRE (EE (EE (EE (EE (EPPPPPS)S)S)S)S) E 38 : EA NONONONONOTTTTTE 38 : EA E 38 : EA E 38 : EA Profit attributable to the equity shareholders (A) Number/Weighted average number of equity shares outstanding at the end of the year (B) Nominal value of equity shares Basic/Diluted earning per share (A/B) (in `) (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 (340.22) 69.11 (2,586.30) 38.29 991.80 (346.57) --------------------------------------------------------- (2,173.90) (2,173.90) (2,173.90) (2,173.90) (2,173.90) ======================== 222.67 (71.92) 1,334.88 (12.67) - - --------------------------------------------------------- 1,472.96 1,472.96 1,472.96 1,472.96 1,472.96 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 2,156.44 21,663,937 ` 10 9.95 6,728.02 21,663,937 ` 10 31.06 E 39 : GRAAAAATTTTTUUUUUIIIIITTTTTY AY AY AY AY ANNNNND OD OD OD OD OTTTTTHHHHHEEEEER PR PR PR PR POOOOOSSSSSTTTTT-----EEEEEMMMMMPPPPPLLLLLOOOOOYYYYYMMMMMEEEEENNNNNT BT BT BT BT BEEEEENNNNNEEEEEFIFIFIFIFIT PT PT PT PT PLLLLLAAAAANSNSNSNSNS E 39 : GR NONONONONOTTTTTE 39 : GR E 39 : GR E 39 : GR a)a)a)a)a) DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnnsssss The Group makes contribution towards Employees Provident Fund and Employee’s State Insurance scheme. Under the rules of these schemes, the Group is required to contribute a specified percentage of payroll costs. The Group during the year recognised the following amount in the Statement of profit and loss account under company’s contribution to defined contribution plan. Pearl Global Industries Limited Annual Report 2019-20 135 Notes to consolidated financial statements for the year ended March 31, 2020 Employer’s Contribution to Provident Fund/ Pension Fund Employer’s Contribution to Employee State Insurance Employer’s Contribution to Employees Deposit Linked Insurance Scheme Employer’s Contribution to Welfare Fund TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 638.39 241.31 15.00 28.87 --------------------------------------------------------- 923.57 923.57 923.57 923.57 923.57 ======================== 483.69 268.79 29.53 28.18 --------------------------------------------------------- 810.19 810.19 810.19 810.19 810.19 ======================== The contribution payable to these schemes by the Group are at the rates specified in the rules of the schemes. nefit Obllllligigigigigaaaaatttttioioioioionnnnn:-:-:-:-:- nefit Ob nefit Ob bbbbb))))) EEEEEmmmmmppppplololololoyeyeyeyeyee Be Be Be Be Beeeeenefit Ob nefit Ob nesia nesia ic of Indondondondondonesia ic of I ic of I he Grouououououppppp’’’’’s os os os os opppppeeeeerrrrraaaaatttttioioioioion in in in in in tn tn tn tn the Rhe Rhe Rhe Rhe Reeeeepubpubpubpubpublllllic of I he Gr he Gr PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr nesia nesia ic of I he Gr The Group determines its post-employment benefits obligation under the Labor Law of the Republic of Indonesia No. 13/ 2003. The cost of providing post-employment benefits is determined using “Projected Unit Credit” method. Actuarial gains or losses are recognized as income or expense when the net cumulative unrecognized actuarial gains and losses at the end of the previous reporting year exceeded the higher of 10% of the defined benefit obligation and 10% of the fair value of plan assets at that date. These gains or losses are recognised on a straight-line basis method over the expected average remaining working lives of the employees. Past service cost arising from the introduction of a defined benefit plan or changes in the benefits obligation of an existing plan are required to be amortized over the period until the benefits concerned become vested. ic of Vietietietietietnnnnnaaaaammmmm ic of V ic of V he Grouououououppppp’’’’’s os os os os opppppeeeeerrrrraaaaatttttioioioioion in in in in in tn tn tn tn the She She She She Sooooociaciaciaciacialllllisisisisist Rt Rt Rt Rt Reeeeepubpubpubpubpublllllic of V he Gr he Gr PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr ic of V he Gr The severance allowance for employees is accrued at the end of each reporting period for all employees having worked at the Group for full 12 months and above. Working time serving as the basis for calculating severance allowance shall be the total actual working time subtracting the time when the employees have made unemployment insurance contributions as prescribed by law, and the working time when severance allowance has been paid to the employees. The allowance made for each year of service equals to a half of an average monthly salary under the Vietnamese Labour Code, Social Insurance Code and relevant guiding documents. The average monthly salary used for calculation of severance allowance shall be adjusted to be the average of the 6 consecutive months nearest to the date of the financial statements at the end of each reporting period. The increase or decrease in the accrued amount shall be recorded in the statement of profit or loss or other comprehensive income. ic of Chhhhhiiiiinnnnnaaaaa ic of C le’le’s Rs Rs Rs Rs Reeeeepubpubpubpubpublllllic of C ic of C le’le’ n of the Phe Phe Phe Phe Peeeeeoooooppppple’ n of t he Grouououououppppp’’’’’s os os os os opppppeeeeerrrrraaaaatttttioioioioion in in in in in tn tn tn tn the Hhe Hhe Hhe Hhe Hooooonnnnng Kg Kg Kg Kg Kooooonnnnng Sg Sg Sg Sg Spppppeeeeeciaciaciaciacial Al Al Al Al Admdmdmdmdmiiiiinnnnnisisisisistttttrrrrraaaaatttttivivivivive Re Re Re Re Reeeeegggggioioioioion of t n of t he Gr PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr he Gr ic of C n of t he Gr The Group participates in Mandatory Provident Fund Scheme (“MPF Scheme”) for its employees in Hong Kong. The MPF Scheme is registered with the Mandatory Provident Fund Scheme Authority under the Mandatory Provident Fund Schemes Ordinance. The assets of the MPF Scheme are held separately from those of the Group in funds under the control of an independent trustee. Pursuant to the rules of the MPF Scheme, each of the employer and employees are required to make contributions to the scheme at rates specified in the rules. The MPF Scheme is a defined contribution plan and the Group is only obliged to make the required contributions under the scheme. No forfeited contribution is available to reduce the contribution payable in the future years. The retirement benefit cost arising from the MPF Scheme charged to the consolidated statement of profit or loss and other comprehensive income represent contribution payable to the funds by the Group in accordance with the rules of the MPF Scheme. ccccc))))) DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p nefit p nefit p nefit plllllaaaaannnnnsssss nefit p In accordance with Ind AS 19 “Employee benefits”, an actuarial valuation on the basis of “Projected Unit Credit Method” was carried out, through which the Group is able to determine the present value of obligations. “Projected Unit Credit Method” recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. 136 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 y schemememememe y sche iiiii))))) GrGrGrGrGraaaaatttttuuuuuititititity sche y sche y sche The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. a) Gratuity in case of Gurgaon Division (Funded & maintained by Life Insurance Corporation of India) b) Gratuity in case of Chennai & Banglore Division (Unfunded) nefitsssss iiiiiiiiii))))) OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefit As per the Group policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilised during the service, or encashed. Encashment can be made during the service, on early retirement, on withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits is determined based on the seniority and the respective employee’s salary. The Group records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive Income in the statement of profit and loss. All other expenses related to defined benefit plans are recognised in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive Income will not be reclassified to statement of profit and loss hence it is treated as part of retained earnings in the statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as past service costs. ddddd))))) The following tables summarize the components of net benefit expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the balance sheet for the defined benefit plan (viz. gratuity and compensated absences).Leave encashment include earned leaves and sick leaves. These have been provided on accrual basis, based on year end actuarial valuation. nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn nefit o nefit o CCCCChhhhhaaaaannnnnggggge ie ie ie ie in bn bn bn bn beeeeenefit o nefit o OpOpOpOpOpeeeeennnnniiiiinnnnng defi nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn nefit o g definenenenened bd bd bd bd beeeeenefit o nefit o g defi g defi nefit o g defi Interest cost Service cost Past Service cost Benefits paid Foreign currency translation reserve Actuarial (gain) / loss on obligations ue of obbbbbllllligigigigigaaaaatttttioioioioionnnnn ue of o ue of o PPPPPrrrrreseeseeseeseesennnnnt vt vt vt vt vaaaaalllllue of o ue of o he yearrrrr he yea he yea nd of t aaaaas as as as as at tt tt tt tt the ehe ehe ehe ehe end of t nd of t nd of the yea he yea nd of t ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) 617.55 48.11 111.96 - (47.38) - (75.64) 654.60 654.60 654.60 654.60 654.60 1,175.43 95.66 287.12 (7.89) (74.11) 8.90 (275.51) 1,209.60 1,209.60 1,209.60 1,209.60 1,209.60 740.07 24.11 286.93 - (743.71) 24.33 246.28 578.01 578.01 578.01 578.01 578.01 672.77 51.87 125.98 - (90.48) - (142.59) 617.55 617.55 617.55 617.55 617.55 877.11 77.36 305.04 - (50.69) 33.09 (66.48) 1,175.43 1,175.43 1,175.43 1,175.43 1,175.43 448.27 13.92 180.16 - (377.73) 8.17 467.28 740.07 740.07 740.07 740.07 740.07 Pearl Global Industries Limited Annual Report 2019-20 137 Notes to consolidated financial statements for the year ended March 31, 2020 e)e)e)e)e) The following tables summarise the components of net benefit expense recognised in the Statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans: CosCosCosCosCost fot fot fot fot for tr tr tr tr the yea he year ir ir ir ir inclnclnclnclncludeudeudeudeudeddddd he yea he yea he yea uuuuundendendendender er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefit nefit Current service cost Past service cost Interest cost Expected return on plan assets Actuarial (gain) / loss NNNNNet cet cet cet cet cosososososttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) 111.96 - 48.11 (26.56) - 133.51 133.51 133.51 133.51 133.51 287.12 (7.89) 95.66 - (87.54) 287.35 287.35 287.35 287.35 287.35 286.93 - 24.11 - 246.28 557.32 557.32 557.32 557.32 557.32 125.98 - 51.87 (8.11) - 169.74 169.74 169.74 169.74 169.74 305.04 - 77.36 - - 382.40 382.40 382.40 382.40 382.40 180.16 - 13.92 - 467.28 661.36 661.36 661.36 661.36 661.36 ue of the phe phe phe phe plllllaaaaan an an an an assssssetsetsetsetsets as as as as arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws::::: ue of t ue of t fffff ))))) CCCCChhhhhaaaaannnnnggggges ies ies ies ies in tn tn tn tn the fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of t ue of t ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) Fair value of plan assets at the beginning Expected return on plan assets Contributions Benefits paid Actuarial gains / (losses) on the plan assets ue of plllllaaaaan an an an an assssssetsetsetsetsets as as as as at tt tt tt tt the ehe ehe ehe ehe en dn dn dn dn d ue of p ue of p FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of p ue of p 388.39 26.26 6.88 (47.38) (10.93) 363.22 363.22 363.22 363.22 363.22 - - - - - ----- - - - - - ----- 105.16 8.11 352.00 (90.48) 13.60 388.39 388.39 388.39 388.39 388.39 - - - - - ----- - - - - - ----- I is as fos fos fos fos follllllololololowswswswsws::::: I is a I is a n/loss rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI is a n/los n/los il of actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin/los il of act il of act ggggg ))))) DDDDDetetetetetaaaaail of act I is a n/los il of act ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) Actuarial gain / (loss) for the year – obligation Actuarial gain / (loss) for the year - plan assets he yearrrrr s) for tr tr tr tr the yea he yea he yea s) fos) fo s) fo TTTTTotototototaaaaal gl gl gl gl gaaaaaiiiiin / (n / (n / (n / (n / (loslosloslosloss) fo he yea (75.64) (275.51) 10.93 - (64.71) (64.71) (64.71) (64.71) (64.71) (275.51) (275.51) (275.51) (275.51) (275.51) - - ----- 142.59 66.48 13.60 - 156.19 156.19 156.19 156.19 156.19 66.48 66.48 66.48 66.48 66.48 - - ----- 138 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 e sheet det det det det daaaaattttte ae ae ae ae arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws::::: e she l actuuuuuaaaaarrrrriaiaiaiaial al al al al assssssssssuuuuummmmmptptptptptioioioioionnnnns as as as as at tt tt tt tt the bhe bhe bhe bhe baaaaalllllaaaaancncncncnce she e she l act hhhhh))))) PPPPPrrrrriiiiincincincincincipppppaaaaal act l act e she l act As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) ic assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss ic a EcEcEcEcEcooooonononononommmmmic a ic a ic a 1. 2. Discount rate Rate of increase in compensation levels ic assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss ic a DDDDDeeeeemomomomomogggggrrrrraaaaappppphhhhhic a ic a ic a Expected average remaining 1. working lives of employees(years) Retirement Age (years) 2. 3. Mortality Rate 6.76% 6.72% to 8.70% 6.73% to 8.47% 5.00% 3.00% to 6.00% 5.00% to 6.00% 8.00% 7.60% to 8.70% 7.60% to 8.00% 6.00% 6.00% 3.00% to 6.00% 20.41 28.12 55-60 58.00 Indian Assured Lives Mortality (2012-14) (modified) ultimate 26.16 58-60 0.05 0.04 0.04 20.19 26.02 55-60 58.00 Indian Assured Lives Mortality (2006-08) (modified) ultimate 0.03 0.02 0.01 0.04 0.04 0.03 24.29 58-60 0.04 0.03 0.03 se of unnnnnfffffuuuuundendendendendeddddd))))) se of u se of u WitWitWitWitWithdrhdrhdrhdrhdraaaaawwwwwaaaaal Rl Rl Rl Rl Raaaaattttte(e(e(e(e(AAAAAvvvvveeeeerrrrraaaaaggggge ie ie ie ie in cn cn cn cn caaaaase of u se of u 1. 2. 3. Ages up to 30 Years Ages from 30-44 Above 44 years 0.03 0.02 0.01 0.06 0.06 0.06 The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. s) forrrrr s) fo s) fo n actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin / (n / (n / (n / (n / (loslosloslosloss) fo n act n act e adjuuuuussssstttttmememememennnnnttttts os os os os on act e adj e adj nd expppppeeeeerrrrrieieieieiencncncncnce adj nd ex nd ex e Sheet aet aet aet aet and ex e She e She ies reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in tn tn tn tn the Bhe Bhe Bhe Bhe Baaaaalllllaaaaancncncncnce She ies r ies r s) / liabiabiabiabiabilililililititititities r s) / l s) / l et (assssssetsetsetsetsets) / l et (a et (a iiiii))))) NNNNNet (a s) fo n act e adj nd ex e She ies r s) / l et (a nefit obbbbbllllligigigigigaaaaatttttioioioioion an an an an and pnd pnd pnd pnd plllllaaaaan an an an an assssssetsetsetsetsetsssss..... nefit o nefit o bbbbbeeeeenefit o nefit o PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) Present value of obligation Less: Fair value of plan assets s /( liabiabiabiabiabilililililititititity)y)y)y)y) s /( l s /( l NNNNNet aet aet aet aet assssssetsetsetsetsets /( l s /( l 654.60 363.22 (291.38) (291.38) (291.38) (291.38) (291.38) 1,209.60 - (1,209.60) (1,209.60) (1,209.60) (1,209.60) (1,209.60) 578.01 - (578.01) (578.01) (578.01) (578.01) (578.01) 617.55 388.39 (229.16) (229.16) (229.16) (229.16) (229.16) 1,175.43 - (1,175.43) (1,175.43) (1,175.43) (1,175.43) (1,175.43) 740.07 - (740.07) (740.07) (740.07) (740.07) (740.07) s showwwwwn bn bn bn bn beloeloeloeloelowwwww ::::: s sho s sho s is a r signnnnnificificificificificaaaaannnnnt at at at at assssssssssuuuuummmmmptptptptptioioioioionnnnns is a s is a r sig r sig lysis fo jjjjj))))) A qA qA qA qA quuuuuaaaaannnnntttttitititititaaaaatttttivivivivive see see see see sennnnnsitsitsitsitsitivivivivivititititity ay ay ay ay annnnnaaaaalysis fo lysis fo s is as sho lysis for sig s sho s is a r sig lysis fo As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) AAAAA..... DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttteeeee As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) B.B.B.B.B. 72.58 157.65 590.80 (59.83) (61.88) Effect on DBO due to 0.5% increase in Discount Rate Effect on DBO due to 0.5% decrease in Discount Rate SSSSSaaaaalllllaaaaarrrrry esc y escaaaaalllllaaaaatttttioioioioion rn rn rn rn raaaaattttteeeee y esc y esc y esc Effect on DBO due to 0.5% increase in Salary Escalation Rate Effect on DBO due to 0.5% decrease in Salary Escalation Rate Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated. (510.52) (510.28) (63.40) (61.30) 282.94 787.35 786.16 283.57 619.47 490.18 588.74 156.36 73.15 70.80 70.24 (425.20) (425.58) 431.66 523.59 C.C.C.C.C. SSSSSeeeeennnnnsitsitsitsitsitivivivivivititititities dies dies dies dies due tue tue tue tue to mo hese not caaaaalculculculculculllllaaaaattttteeeeeddddd hese not c act of chaaaaannnnnggggge de de de de due tue tue tue tue to to to to to these not c hese not c act of ch l & hencncncncnce ie ie ie ie immmmmpppppact of ch act of ch l & he e not maaaaattttteeeeerrrrriaiaiaiaial & he l & he e not m o morrrrrtttttaaaaalllllititititity & wy & wy & wy & wy & wititititithdrhdrhdrhdrhdraaaaawwwwwaaaaals als als als als arrrrre not m e not m o moo mo o mo hese not c act of ch l & he e not m le.le. le.le. fofofofofor gr gr gr gr grrrrrouououououp ap ap ap ap as a ws a ws a ws a ws a whohohohohole. Pearl Global Industries Limited Annual Report 2019-20 139 Notes to consolidated financial statements for the year ended March 31, 2020 k)k)k)k)k) RiskRiskRiskRiskRisk Discount Rate Salary Increases Withdrawals Morality and disability Reduction in discount rate in subsequent valuations can increase the liability. Actual salary increases will increase the defined benefit liability. Increase in salary increase rate assumption in future valuations which inturn also increase the liability. Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawals rates at subsequent valuations can impact defined benefit liability. Actual details and disability cases proving lower or higher than assumed in the valuation can impact the liabilities. n is as fos fos fos fos follllllololololowswswswsws::::: n is a n is a nefit obbbbbllllligigigigigaaaaatttttioioioioion is a nefit o nefit o ofile of definenenenened bd bd bd bd beeeeenefit o ofile of defi ofile of defi lllll))))) MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of defi n is a nefit o ofile of defi 0 to 1 years 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years from 5 years onwards ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 55.88 45.58 50.45 36.42 59.87 771.60 33.40 28.07 60.96 82.29 154.55 4,148.36 50.20 29.80 52.70 58.90 52.40 822.30 9.60 12.00 18.30 30.00 52.80 3,534.90 E 40 : CAPPPPPIIIIITTTTTAAAAAL ML ML ML ML MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT E 40 : CA E 40 : CA NONONONONOTTTTTE 40 : CA E 40 : CA For the purpose of capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the capital management is to maximise the shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may return capital to shareholders or issue new shares. The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, interest bearing borrowings, trade and other payables, less cash and cash equivalents. Borrowings (Refer to note 21 and 21A) Current maturity of long term loans (Refer to note 22) Trade payables (Refer to note 25) Other payables Less: cash and cash equivalents (Refer to note 17) NNNNNet debt ( et debt ( et debt ( et debt (AAAAA))))) et debt ( Equity share capital (Refer to note 19) Other equity (Refer to note 20) TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaapppppitititititaaaaal (B) l (B) l (B) l (B) l (B) A+B=C) A+B=C) nd net debt ( CCCCCaaaaapppppitititititaaaaal al al al al and net debt ( nd net debt ( A+B=C) nd net debt (A+B=C) A+B=C) nd net debt ( io (A/C)A/C)A/C)A/C)A/C) io ( GGGGGeaeaeaeaearrrrriiiiinnnnng rg rg rg rg raaaaatttttio ( io ( io ( (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 35,699.01 2,769.20 18,106.67 7,050.65 (8,808.89) --------------------------------------------------------- 54,816.65 54,816.65 54,816.65 54,816.65 54,816.65 --------------------------------------------------------- 2,166.39 47,891.00 --------------------------------------------------------- 50,057.40 50,057.40 50,057.40 50,057.40 50,057.40 --------------------------------------------------------- 104,874.04 104,874.04 104,874.04 104,874.04 104,874.04 --------------------------------------------------------- 52.27% 52.27% 52.27% 52.27% 52.27% --------------------------------------------------------- As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 31,592.83 1,680.89 18,106.47 7,874.29 (9,434.12) --------------------------------------------------------- 49,820.36 49,820.36 49,820.36 49,820.36 49,820.36 --------------------------------------------------------- 2,166.39 44,820.35 --------------------------------------------------------- 46,986.74 46,986.74 46,986.74 46,986.74 46,986.74 --------------------------------------------------------- 96,807.11 96,807.11 96,807.11 96,807.11 96,807.11 --------------------------------------------------------- 51.46% 51.46% 51.46% 51.46% 51.46% --------------------------------------------------------- 140 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2020 and March 31, 2019. In order to achieve this overall objective, the capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. E 41 : DERRRRRIIIIIVVVVVAAAAATTTTTIIIIIVVVVVE IE IE IE IE INSNSNSNSNSTTTTTRRRRRUUUUUMMMMMEEEEENNNNNTS ATS ATS ATS ATS ANNNNND UD UD UD UD UNNNNNHHHHHEEEEEDDDDDGGGGGEEEEED FD FD FD FD FOOOOORRRRREEEEEIIIIIGGGGGN CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNCCCCCY EY EY EY EY EXXXXXPPPPPOOOOOSSSSSUUUUURRRRREEEEE E 41 : DE NONONONONOTTTTTE 41 : DE E 41 : DE E 41 : DE I)I)I)I)I) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss s hes he es not designnnnnaaaaattttteeeeed ad ad ad ad as he es not desig es not desig DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives not desig es not desig The Group uses forward currency contracts to hedge its foreign currency risks. Derivative contracts not designated by management as hedging instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions. s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss s hes he es designnnnnaaaaattttteeeeed ad ad ad ad as he es desig es desig DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives desig es desig The Group enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Group. The Group has decided to apply hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered post April 01, 2019. Hedging strategies are decided and monitored periodically by the Risk Management Committee of the Board. CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddgggggeseseseses Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items in US dollar. These forecast transactions are highly probable. The foreign exchange forward contract balances vary with the level of expected foreign currency sales and changes in foreign exchange forward rates. s is as fos fos fos fos follllllololololowswswswsws::::: s is a s is a ue of derrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts is a ue of de ue of de TTTTThe fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of de s is a ue of de PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Fair value of foreign currency forward exchange contract designated as hedging instruments LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 AsAsAsAsAssetsetsetsetsetsssss ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 991.80 ----- The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale transactions. As a result, no hedge effectiveness arises requiring recognition through profit or loss. The cash flow hedges of the forecasted sale transactions for the year ended March 31, 2020 were assessed to be highly effective and unrealised loss of ` 991.80 lakh, with a deferred tax assets of ` 346.57 lakh relating to the hedging instruments, is included in OCI. The following table includes the maturity profile of the foreign exchange forward contracts: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2020 (INR) Foreign exchange forward contracts (highly probable forecast sales) USD Notional amount (in USD) Average forward rate(USD/INR) LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 1 monnnnnttttthhhhh 1 mo 1 mo 1 mo 1 mo 3,118.99 70.00 1 t1 t1 t1 t1 to 3o 3o 3o 3o 3 momomomomonnnnnttttthhhhhsssss 5,617.99 120.00 3 t3 t3 t3 t3 to 6o 6o 6o 6o 6 momomomomonnnnnttttthhhhhsssss 6,316.02 180.00 6 t6 t6 t6 t6 to 9o 9o 9o 9o 9 momomomomonnnnnttttthhhhhsssss 4,313.64 190.00 9 t9 t9 t9 t9 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss 4,625.57 240.00 TTTTTotototototaaaaalllll 23,992.21 800.00 43.00 72.53 77.00 72.96 85.92 73.51 58.00 74.37 61.00 75.83 324.92 73.84 Pearl Global Industries Limited Annual Report 2019-20 141 Notes to consolidated financial statements for the year ended March 31, 2020 The impact of the hedging instruments on the balance sheet is as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Foreign currency risk forward contract- As at March 31, 2020 (((((UUUUUSSSSSD)D)D)D)D) (I(I(I(I(INNNNNR iR iR iR iR in ln ln ln ln laaaaakkkkkhhhhh))))) NNNNNotototototioioioioionnnnnaaaaal al al al al amoumoumoumoumounnnnnttttt CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt LLLLLiiiiine itne itne itne itne iteeeeem im im im im in Bn Bn Bn Bn BSSSSSTTTTT CCCCChhhhhaaaaannnnnggggges ies ies ies ies in Fn Fn Fn Fn Faaaaaiiiiirrrrr vvvvvaaaaalllllue uue uue uue uue usesesesesed fod fod fod fod forrrrr meameameameameasssssuuuuurrrrriiiiinnnnnggggg neffectctctctctiviviviviveeeeenesnesnesnesnessssss neffe iiiiineffe neffe neffe fofofofofor tr tr tr tr the yea he yearrrrr he yea he yea he yea (991.80) w w w w wheheheheherrrrre He He He He Heeeeedddddgggggeeeee iiiiinnnnnssssstttttrrrrruuuuumememememennnnnt ist ist ist ist is iscloseddddd isclose dddddisclose isclose isclose (991.80) 324.92 Other financial Liabilities The impact of hedged items on the statement of financial position is, as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Highly probable forecast sales ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 CCCCChhhhhaaaaannnnnggggge ie ie ie ie in fn fn fn fn faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue r measssssuuuuurrrrriiiiinnnnnggggg r mea r mea uuuuusesesesesed fod fod fod fod for mea r mea neffectctctctctiviviviviveeeeenesnesnesnesnessssss neffe neffe iiiiineffe neffe (991.80) sh flowwwww sh flo sh flo CCCCCaaaaash flo sh flo HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee (991.80) The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows: ofit and Lnd Lnd Lnd Lnd Losososososs)s)s)s)s) ofit a ofit a t of Prrrrrofit a t of P t of P s of hedddddggggge ace ace ace ace accccccououououounnnnntttttiiiiinnnnng og og og og on Fn Fn Fn Fn Fiiiiinnnnnaaaaancianciancianciancial Pl Pl Pl Pl Positositositositositioioioioion (Sn (Sn (Sn (Sn (Stttttaaaaattttteeeeemememememennnnnt of P s of he s of he e of effectctctctcts of he e of effe e of effe Disclosuuuuurrrrre of effe Disclos Disclos ofit a t of P s of he e of effe Disclos Disclos PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2020 Highly probable forecast sales l hedddddgggggiiiiinnnnnggggg l hel he l he TTTTTotototototaaaaal he gggggaaaaaiiiiin/(n/(n/(n/(n/(loslosloslosloss)s)s)s)s) rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn OOOOOCCCCCIIIII neffectctctctctiviviviviveeeeenesnesnesnesnessssss LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn neffe neffe IIIIIneffe neffe t of t of rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of t of t of r lossssss r los r los ofit o ofit o ppppprrrrrofit o ofit or los r los ofit o LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn AAAAAmoumoumoumoumounnnnnttttt t of t of SSSSStttttaaaaattttteeeeemememememennnnnt of sifieddddd sifie sifie rrrrreeeeeclclclclclaaaaassssssifie t of t of sifie nd lossssss nd los nd los ofit a ofit a ofit andndndndnd frfrfrfrfrooooom Om Om Om Om OCCCCCI tI tI tI tI tooooo ppppprrrrrofit a ofit a ofit a ppppprrrrrofit a ofit and los nd los ofit a ofit a r lossssss r los r los ofit o ofit o losloslosloslossssss ppppprrrrrofit o ofit or los r los ofit o (1,030.22) - - (38.42) Revenue from Operations act of hedddddgggggiiiiinnnnng og og og og on en en en en eqqqqquuuuuititititityyyyy act of he act of he IIIIImmmmmpppppact of he act of he Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2020 Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts Amount reclassified to profit & loss Tax effect VVVVVaaaaallllluuuuuaaaaatttttioioioioion Tn Tn Tn Tn Teeeeechchchchchnnnnniqiqiqiqiqueueueueue CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololowwwww HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee (991.80) (1,030.22) 38.42 346.57 The Group enters into derivative financial instruments which are valued using valuation techniques which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using present value calculations. Where quoted market prices are not available, fair values are based on Management best estimates, which are arrived at by the reference to market prices. 142 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 rs of Unnnnnhehehehehedddddgggggeeeeed fod fod fod fod forrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy exy exy exy exy exppppposososososuuuuurrrrreseseseses::::: rs of U IIIIII)I)I)I)I) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of U rs of U rs of U PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Foreign currency receivable Foreign currency payable FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy iiiiin ln ln ln ln laaaaakkkkkhhhhh 5.63 HKD 56,295.50 IDR 0.00 EUR 0.16 GBP SGD 0.00 VND 50,120.31 CNY 0.15 77.12 USD 22.40 HKD 2.40 IDR VND 7.28 27.31 USD (((((````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) 54.75 HKD 259.93 IDR 0.04 EUR 15.31 GBP 0.01 SGD FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy iiiiin ln ln ln ln laaaaakkkkkhhhhh 25.37 36,333.72 4.25 0.00 0.00 161.30 VND 25,430.25 0.54 1.54 CNY - 5,813.75 USD 181.63 1,688.69 HKD - 180.71 IDR 546.85 VND 122,327.45 68.75 2,058.88 USD (((((````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) 223.51 176.79 330.46 0.10 0.01 75.83 5.52 - 1,600.42 - 364.74 4,755.72 III) In respect of the derivative contracts entered into by the Group. The Management asessess no material foreseeable losses as at the reporting date. E 42 : FAIIIIIR VR VR VR VR VAAAAALLLLLUUUUUEEEEESSSSS E 42 : FA E 42 : FA NONONONONOTTTTTE 42 : FA E 42 : FA Set out below, is a comparison by class of the carrying amounts and fair value of the financial instruments, other than those with carrying amounts that are reasonable approximations of fair values: a) ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss::::: ue of fi ue of fi FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi ue of fi (Amount in ` Lakh, unless otherwise stated) s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiirrrrr FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s mea s mea s mea vvvvvaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o r lossssss r los r los ofit o ofit o ofit or los r los ofit o Investment in equity instruments Investment in mutual fund Mark to market forward contracts (((((AAAAA))))) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s mea s mea s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s mea ttttthhhhhrrrrrououououougggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe Investment in mutual fund (B)(B) (B)(B) (B) CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 141.00 692.68 - 833.68 833.68 833.68 833.68 833.68 133.50 - 462.80 596.30 596.30 596.30 596.30 596.30 141.00 692.68 - 833.68 833.68 833.68 833.68 833.68 133.50 - 462.80 596.30 596.30 596.30 596.30 596.30 948.97 948.97 948.97 948.97 948.97 948.97 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 948.97 948.97 948.97 948.97 948.97 948.97 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 Pearl Global Industries Limited Annual Report 2019-20 143 Notes to consolidated financial statements for the year ended March 31, 2020 a) ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss: : : : : (((((CCCCCooooonnnnntttttddddd.).).).).) ue of fi FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi ue of fi ue of fi (Amount in ` Lakh, unless otherwise stated) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt s mea s mea s mea Investment in government securities Security deposits Interest accrued on fixed deposits Deposits with original maturity of more than 12 months Loans from related parties Loans from others parties Interest accrued on loan to related parties Others Trade receivable Cash and cash equivalents Other bank balances (C) (C) (C) (C) (C) A+B+C) A+B+C) TTTTTotototototaaaaal (l (l (l (l (A+B+C) A+B+C) A+B+C) CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 1,994.40 1,147.70 56.42 265.11 300.00 3,876.49 8.45 1.16 22,042.47 8,808.89 2,168.83 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 42,452.57 42,452.57 42,452.57 42,452.57 42,452.57 1,829.98 1,124.81 40.97 1,213.74 300.00 3,658.32 12.14 235.41 22,177.86 9,434.12 1,707.71 41,735.06 41,735.06 41,735.06 41,735.06 41,735.06 43,644.04 43,644.04 43,644.04 43,644.04 43,644.04 1,994.40 1,147.70 56.42 265.11 300.00 3,876.49 8.45 1.16 22,042.47 8,808.89 2,168.83 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 42,452.57 42,452.57 42,452.57 42,452.57 42,452.57 1,829.98 1,124.81 40.97 1,213.74 300.00 3,658.32 12.14 235.41 22,177.86 9,434.12 1,707.71 41,735.06 41,735.06 41,735.06 41,735.06 41,735.06 43,644.04 43,644.04 43,644.04 43,644.04 43,644.04 b) ue of finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies::::: ue of fi ue of fi FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi ue of fi (Amount in ` Lakh, unless otherwise stated) s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s mea s mea FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s mea ttttthhhhhrrrrrououououougggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe Derivative Financial Instruments (((((AAAAA))))) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt ies mea ies mea ies mea Borrowings Lease Liabilities Security Deposit Book Overdraft Unpaid Dividend Current Maturity of long term loans Trade payables Interest accrued but not due on borrowings Creditors for capital expenditure Others (B)(B) (B)(B) (B) A+B)A+B) TTTTTotototototaaaaal(l(l(l(l(A+B) A+B)A+B) CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 991.8 991.8 991.8 991.8 991.8 991.8 35,699.01 7,797.67 246.97 26.87 31.85 2,769.20 18,106.67 37.48 30.21 1,830.22 66,576.15 66,576.15 66,576.15 66,576.15 66,576.15 67,567.95 67,567.95 67,567.95 67,567.95 67,567.95 - ----- 991.8 991.8 991.8 991.8 991.8 991.8 - ----- 31,592.83 - 222.00 150.48 26.83 1,680.89 18,106.47 24.67 849.25 2,424.77 55,078.19 55,078.19 55,078.19 55,078.19 55,078.19 55,078.19 55,078.19 55,078.19 55,078.19 55,078.19 35,723.90 7,797.67 246.97 26.87 31.85 2,769.20 18,106.67 37.48 30.21 1,830.22 66,601.04 66,601.04 66,601.04 66,601.04 66,601.04 67,592.83 67,592.83 67,592.83 67,592.83 67,592.83 31,601.74 - 222.00 150.48 26.83 1,680.89 18,106.47 24.67 849.25 2,424.77 55,087.10 55,087.10 55,087.10 55,087.10 55,087.10 55,087.10 55,087.10 55,087.10 55,087.10 55,087.10 144 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to the short-term maturities of these instruments. Long-term borrowing includes vehicle loan and corporate loans obtained from banks and Financial institutions . Management determines vehicle loan and corporate loan to be at the market rate of interest as at the reporting date, accordingly, the carrying value of such long-term borrowing approximates fair value. n deteeeeerrrrrmmmmmiiiiinnnnniiiiinnnnng fg fg fg fg faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue n det ccccc))))) DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttte ue ue ue ue usesesesesed id id id id in det n det n det The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing rate of borrower which in case of financial liabilities is average market cost of borrowings and in case of financial asset is the average market rate of similar credit rated instrument. The Group maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. d) The following methods and assumptions were used to estimate the fair values: i) Fair values of the interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the rate as at the end of the reporting period. ii) Fair value for security deposits paid & received (other than perpetual security deposits) has been presented based on the discounting factor as at the reporting date. iii) Fair value for all other non-current assets and liabilities is equivalent to the amortised cost, interest rate on them is equivalent to the market rate of interest. iv) For other financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values. v) Specific valuation techniques used to value financial instruments include: - - - The fair values of investments In mutual fund units is based on The net asset value (‘NAV’) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which The issuer will issue further units of mutual fund and The price at which issuers will redeem such units from the investors. Investment in quoted equity instruments of entities other than subsidiaries has been determined on the basis of quoted rates available from securities markets in India. The fair value of derivative financial instruments (forward exchange contract) has been determined on the basis of mark to market valuation. E 43 : FAIIIIIR HR HR HR HR HIIIIIEEEEERRRRRAAAAARRRRRCCCCCHHHHHYYYYY E 43 : FA NONONONONOTTTTTE 43 : FA E 43 : FA E 43 : FA All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either directly or indirectly. Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on observable market data. The following table provides the fair value measurement hierarchy of the assets and liabilities Pearl Global Industries Limited Annual Report 2019-20 145 Notes to consolidated financial statements for the year ended March 31, 2020 ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020: ch 31, 2020: ch 31, 2020: ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea isclos a)a)a)a)a) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos isclos ch 31, 2020: ch 31, 2020: ue mea isclos As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiirrrrr FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s mea s mea s mea vvvvvaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o r lossssss r los r los ofit o ofit o ofit or los r los ofit o Investment in equity instruments Investment in mutual fund TTTTTotototototaaaaal Al Al Al Al A FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s mea s mea s mea ttttthhhhhrrrrro uo uo uo uo ugggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe Investment in mutual fund TTTTTotototototaaaaal Bl Bl Bl Bl B FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt s mea s mea s mea Investment in government securities Security deposits Interest accrued on fixed deposits Deposits with original maturity of more than 12 months Loans from related parties Loans from others parties Interest accrued on loan to related parties Other Trade receivable* Cash and cash equivalents* Other bank balances* TTTTTotototototaaaaal Cl Cl Cl Cl C TTTTTotototototaaaaal (l (l (l (l (A+B+C) A+B+C) A+B+C) A+B+C) A+B+C) 141.00 692.68 833.68 833.68 833.68 833.68 833.68 948.97 948.97 948.97 948.97 948.97 948.97 1,994.40 1,147.70 56.42 265.11 300.00 3,876.49 8.45 1.16 22,042.47 8,808.89 2,168.83 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 42,452.57 42,452.57 42,452.57 42,452.57 42,452.57 - - - ----- 1,994.40 1,147.70 56.42 265.11 300.00 3,876.49 8.45 1.16 22,042.47 8,808.89 2,168.83 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) 141.00 692.68 833.68 833.68 833.68 833.68 833.68 948.97 948.97 948.97 948.97 948.97 948.97 - - - - - - - - - - - ----- 1,782.65 1,782.65 1,782.65 1,782.65 1,782.65 FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) el 3) el 3) - - ----- ----- - - - - - - - - - - - ----- ----- - - ----- - ----- - - - - - - - - - - - ----- ----- ch 31, 2020: ch 31, 2020: ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020: ies a ies a ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a ue mea ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea isclos isclos bbbbb))))) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos ch 31, 2020: ch 31, 2020: ies a ue mea isclos As AAs AAs AAs AAs Attttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 2) el 2) (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 3) el 3) (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) TTTTTotototototaaaaalllll 141.00 692.68 833.68 833.68 833.68 833.68 833.68 948.97 948.97 948.97 948.97 948.97 948.97 1,994.40 1,147.70 56.42 265.11 300.00 3,876.49 8.45 1.16 22,042.47 8,808.89 2,168.83 40,669.92 40,669.92 40,669.92 40,669.92 40,669.92 42,452.57 42,452.57 42,452.57 42,452.57 42,452.57 TTTTTotototototaaaaalllll s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s mea s mea FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s mea ttttthhhhhrrrrro uo uo uo uo ugggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe Derivative Financial Instruments (((((AAAAA))))) ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt ies mea ies mea FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies mea Borrowings Lease Liabilities Security deposit Book overdraft Unpaid dividend Trade payables* Interest accrued but not due on borrowings* Creditors for capital expenditure* Others (B) (B) (B) (B) (B) A+B) A+B) TTTTTotototototaaaaal(l(l(l(l(A+B) A+B) A+B) 991.80 991.80 991.80 991.80 991.80 991.80 35,699.01 7,797.67 246.97 26.87 31.85 18,106.67 37.48 30.21 1,830.22 63,806.95 63,806.95 63,806.95 63,806.95 63,806.95 64,798.74 64,798.74 64,798.74 64,798.74 64,798.74 - ----- - 7,797.67 246.97 26.87 31.85 18,106.67 37.48 30.21 1,830.22 28,107.94 28,107.94 28,107.94 28,107.94 28,107.94 28,107.94 28,107.94 28,107.94 28,107.94 28,107.94 - ----- - - - - - - - - - ----- ----- 991.80 991.80 991.80 991.80 991.80 991.80 - - - - - - - - - ----- 991.80 991.80 991.80 991.80 991.80 - ----- 991.80 991.80 991.80 991.80 991.80 991.80 35,723.90 - - - - - - - - 35,723.90 35,723.90 35,723.90 35,723.90 35,723.90 35,723.90 35,723.90 35,723.90 35,723.90 35,723.90 35,723.90 7,797.67 246.97 26.87 31.85 18,106.67 37.48 30.21 1,830.22 63,831.84 63,831.84 63,831.84 63,831.84 63,831.84 64,823.64 64,823.64 64,823.64 64,823.64 64,823.64 146 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019: ch 31, 2019: ch 31, 2019: ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea isclos ccccc))))) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos isclos ch 31, 2019: ch 31, 2019: ue mea isclos As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) el 3) el 3) AsAsAsAsAssetsetsetsetsets mea r lossssss r los r los ofit o s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrro uo uo uo uo ugggggh ph ph ph ph prrrrrofit o ofit o s mea s mea ofit or los r los ofit o s mea Investment in equity instruments Mark to market forward contracts (((((AAAAA))))) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s mea s mea s mea ttttthhhhhrrrrro uo uo uo uo ugggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe Investment in mutual fund (B) (B) (B) (B) (B) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt s mea s mea s mea Investment in government securities Security deposits Interest accrued on fixed deposits Deposits with original maturity of more than 12 months Loans from related parties Loans from others parties Interest accrued on loan to related parties Others Trade receivable* Cash and cash equivalents* Other bank balances* (C) (C) (C) (C) (C) TTTTTotototototaaaaal (l (l (l (l (A+B+C) A+B+C) A+B+C) A+B+C) A+B+C) 133.50 462.80 596.30 596.30 596.30 596.30 596.30 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 1,829.98 1,124.81 40.97 1,213.74 300.00 3,658.32 12.14 235.41 22,177.86 9,434.12 1,707.71 41,735.06 41,735.06 41,735.06 41,735.06 41,735.06 43,644.04 43,644.04 43,644.04 43,644.04 43,644.04 QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) 133.50 - 133.50 133.50 133.50 133.50 133.50 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 - - - - - - - - - - ----- - - ----- - ----- 1,829.98 1,124.81 40.97 1,213.74 300.00 3,658.32 12.14 235.41 22,177.86 9,434.12 1,707.71 41,735.06 41,735.06 41,735.06 41,735.06 41,735.06 - 462.80 462.80 462.80 462.80 462.80 462.80 ----- - - - - - - - - - - ----- ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019: ch 31, 2019: ch 31, 2019: ies a ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a ies a ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea isclos ddddd))))) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos isclos ch 31, 2019: ch 31, 2019: ies a ue mea isclos 41,735.06 41,735.06 41,735.06 41,735.06 41,735.06 1,446.18 1,446.18 1,446.18 1,446.18 1,446.18 462.80 462.80 462.80 462.80 462.80 ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt ies mea ies mea FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies mea Borrowings Security deposit Book overdraft Unpaid dividend Trade payables* Interest accrued but not due on borrowings* Creditors for capital expenditure* Others As AAs AAs AAs AAs Attttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt 31,592.83 222.00 150.48 26.83 18,106.47 24.67 849.25 2,424.77 - 222.00 150.48 26.83 18,106.47 24.67 849.25 2,424.77 53,397.30 53,397.30 53,397.30 53,397.30 53,397.30 21,804.47 21,804.47 21,804.47 21,804.47 21,804.47 FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 2) el 2) (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 3) el 3) (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) - - - - - - - - ----- - - - - - - - - ----- 31,601.74 - - - - - - - 31,601.74 222.00 150.48 26.83 18,106.47 24.67 849.25 2,424.77 31,601.74 31,601.74 31,601.74 31,601.74 31,601.74 53,406.21 53,406.21 53,406.21 53,406.21 53,406.21 TTTTTotototototaaaaalllll 133.50 462.80 596.30 596.30 596.30 596.30 596.30 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 1,312.68 1,829.98 1,124.81 40.97 1,213.74 300.00 3,658.32 12.14 235.41 22,177.86 9,434.12 1,707.71 41,735.06 41,735.06 41,735.06 41,735.06 41,735.06 43,644.04 43,644.04 43,644.04 43,644.04 43,644.04 TTTTTotototototaaaaalllll - - ----- - ----- - - - - - - - - - - ----- ----- Pearl Global Industries Limited Annual Report 2019-20 147 Notes to consolidated financial statements for the year ended March 31, 2020 * Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to the short-term maturities of these instruments. There have been no transfers between Level 1 and Level 2 during the period. Specific valuation techniques used to value financial instruments. (refer note 42) E 44 : FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL RL RL RL RL RIIIIISSSSSK MK MK MK MK MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT OT OT OT OT OBBBBBJJJJJECECECECECTTTTTIIIIIVVVVVEEEEES AS AS AS AS ANNNNND PD PD PD PD POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS E 44 : FI NONONONONOTTTTTE 44 : FI E 44 : FI E 44 : FI The Group’s risk management policies are established to identify and analyse the risks faced by the group, to set appropriate risk limits and controls and to monitor risks & adherence to limits. Risk management policies and systems are reviewed by the Risk management Committee annually to reflect changes in market condition and operations of Companies included in the Group. The Group principal financial liabilities comprises of trade and other payables, borrowings, current maturity of borrowings, interest accrued and capital creditors. The main purpose of these financial liabilities is to finance the operations and to provide guarantees to support its operations. The Group principal financial assets includes Investment in mutual funds, loans to related parties, security deposits, trade receivables, cash and cash equivalents, deposits with bank, interest accrued in deposits, receivables from related and other parties and interest accrued thereon. The Group is exposed to credit risk, liquidity risk and market risk. The senior level management oversees the management of these risks and is supported by Treasury department that advises on the appropriate financial risk governance framework. AAAAA..... MMMMMaaaaarrrrrkkkkket ret ret ret ret riskiskiskiskisk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk are borrowings, short term deposits and derivative financial instruments. The sensitivity analyses in the following sections relate to the position as at March 31, 2020 and March 31, 2019. iiiii))))) IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte re re re re riskiskiskiskisk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group exposure to the risk of changes in market interest rates relates primarily to the long-term debt obligations with floating interest rates. The Group main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to interest rate risk. The Group manages its net exposure to interest rate risk related to borrowings, by balancing a proportion of fixed rate and floating rate borrowing in its total borrowing portfolio. Currently, the Group’s borrowings are within acceptable risk levels, as determined by the management, hence the Group has not taken any swaps to hedge the interest rate risk. IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte see see see see sennnnnsitsitsitsitsitivivivivivititititityyyyy The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the portion of borrowings affected. With all other variables held constant, the Group profit before tax is affected through the impact on floating rate borrowings, as follows: MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se) r der de se/( r der decccccrrrrreaeaeaeaeasesesesese DDDDDeeeeecccccrrrrreaeaeaeaease/( se/( IIIIIncncncncncrrrrreaeaeaeaease ose ose ose ose or de se/( iiiiin bn bn bn bn baaaaasis psis psis psis psis poooooiiiiinnnnntttttsssss iiiiin pn pn pn pn prrrrrofitofitofitofitofit +50 5.64 (5.64) -50 +50 16.20 (16.20) -50 The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years. 148 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 iiiiiiiiii))))) FFFFFooooorrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy ry ry ry ry riskiskiskiskisk Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in exchange rates. Foreign currency risk senstivity is the impact on the profit before tax is due to changes in the fair value of monetary assets and liabilities on unhedged exposures. The following tables demonstrate the sensitivity to a reasonably possible change in applicable currency exchange rates, with all other variables held constant. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 B.B.B.B.B. CCCCCrrrrreeeeedddddit rit rit rit rit riskiskiskiskisk CCCCChhhhhaaaaannnnnggggges ies ies ies ies innnnn DDDDDeeeeecccccrrrrreaeaeaeaease/( se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se) se/( se/( se/( ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx ofit b ofit b i i i i in pn pn pn pn prrrrrofit b ofit b (91.57) 91.57 295.00 (295.00) exexexexexchchchchchaaaaannnnnggggge re re re re raaaaattttteeeee +5% -5% +5% -5% Credit risk is the risk that counterparty will default on its contrctual obligations resulting in finance loss to the Company. Credit risk arise from Cash and cash equivalents, deposit with banks, trade receivables and other financial assets measure at amortised cost. The Group continuosly monitors defaults of customers and other counterparties and incorporate this information into its credit risk control. The carrying amount of financial assets represents the maximum credit exposure. ade reeeeeccccceiveiveiveiveivababababableslesleslesles ade r ade r iiiii))))) TTTTTrrrrrade r ade r The ageing analysis of trade receivables as of the reporting date is as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Trade receivables as of March 31, 2020 Trade receivables as of March 31, 2019 NNNNNeiteiteiteiteitheheheheher pr pr pr pr paaaaasssssttttt ue norrrrr ue no ue no dddddue no ue no iiiiimmmmmpppppaaaaaiiiiirrrrreeeeeddddd 17,559.04 LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 30 d30 d30 d30 d30 daaaaaysysysysys 30 t30 t30 t30 t30 to 90o 90o 90o 90o 90 dddddaaaaaysysysysys o 180 MMMMMooooorrrrre te te te te thhhhhaaaaannnnn o 180 o 180 90 t90 t90 t90 t90 to 180 o 180 180 daaaaaysysysysys 180 d 180 d dddddaaaaaysysysysys 180 d 180 d TTTTTotototototaaaaalllll 2,680.10 1,567.65 201.07 34.61 22,042.47 6,865.15 7,576.27 7,571.51 13.97 150.96 22,177.86 iiiiiiiiii))))) Exposure to Risk, in respect of the guarantees given by the Group: The disclosure in respect of credit risk exposures which are not credit impaired or where there has not been a significant increase in credit risk since initial recognition are as under: ofileofile ----- QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de daaaaattttta aba aba aba aba abououououout ext ext ext ext exppppposososososuuuuurrrrre ae ae ae ae and mnd mnd mnd mnd maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile ofileofile e Giveeeeen tn tn tn tn tooooo e Giv GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeee Giv e Giv e Giv Standard Chartered Bank, Hongkong Branch DDDDDetetetetetaaaaails of ils of ils of ils of ils of ubsidiaiaiaiaiarrrrryyyyy ubsid ubsid SSSSSubsid ubsid Pearl Global (HK) Limited PPPPPuuuuurprprprprpose of ose of ose of ose of ose of GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee Securing Credit Facilities AAAAAmoumoumoumoumounnnnnt at at at at as as as as as attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 USD 120.00 lakh equivalent to ` 9,046.80 lakh GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee VVVVVaaaaalllllid Uid Uid Uid Uid Uptptptptptooooo February 05, 2021 Standard Chartered Bank, Hongkong Branch Pearl Global (HK) Limited Standard Chartered Bank, Bangladesh Branch Norp Knit Industries Limited Securing Credit Facilities USD 200.00 lakh November 10, 2021 equivalent to ` 15,078.00 lakh Securing Credit BDT 9,000.00 lakh equivalent to ` 7,967.43 lakh Facilities October 11, 2021 Pearl Global Industries Limited Annual Report 2019-20 149 Notes to consolidated financial statements for the year ended March 31, 2020 - PPPPPooooolllllicicicicicy of my of my of my of my of maaaaannnnnaaaaagggggiiiiinnnnng rg rg rg rg riskiskiskiskisk::::: The Group considers the probability of default upon initial recognition and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Group compares the risk of default as at the reporting date with the risk of default as at the date of initial recognition. The Group considers reasonable and supportive forward- looking information such as significant changes in the value of guarantee or in the quality of exposure or credit enhancements. sh depppppositositositositositsssss sh de iiiiiiiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts as as as as and cnd cnd cnd cnd caaaaash de sh de sh de Credit risk from balances with banks and financial institutions is managed by the treasury department in accordance with the policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the finance committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments. C.C.C.C.C. LLLLLiqiqiqiqiquuuuuidididididititititity ry ry ry ry riskiskiskiskisk Liquidity risk is the risk that the Group may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The objective is to, maintain optimum levels of liquidity to meet its cash and collateral requirements both under normal & stressed conditions. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of fund through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. These facilities and limits varry at Company level (forming part of Group) and taks into account, future cash flows and the liquidity in which the entity operates. ies baaaaasesesesesed od od od od on cn cn cn cn cooooonnnnntttttrrrrractactactactactuuuuuaaaaal ul ul ul ul undndndndndiscisciscisciscououououounnnnnttttteeeeeddddd ies b ies b he finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities b he fi he fi ofile of t ofile of t ises the mhe mhe mhe mhe maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of t ises t ises t TTTTThe the the the the tababababable ble ble ble ble beloeloeloeloelow sw sw sw sw suuuuummmmmmmmmmaaaaarrrrrises t ofile of the fi ies b he fi ofile of t ises t pppppaaaaayyyyymememememennnnntttttsssss..... ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 Borrowings Lease Liabilities Current Maturities of long term borrowings Trade payables Other financial liabilities TTTTTotototototaaaaalllll As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Borrowings Current Maturities of long term borrowings Trade payables Other financial liabilities TTTTTotototototaaaaalllll LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 25,715.32 188.20 692.30 18,106.67 1,956.63 46,659.12 46,659.12 46,659.12 46,659.12 46,659.12 LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 23,486.07 420.22 18,106.47 3,476.00 45,488.76 45,488.76 45,488.76 45,488.76 45,488.76 3 t3 t3 t3 t3 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss 97.39 621.99 2,076.90 - 991.80 3,788.08 3,788.08 3,788.08 3,788.08 3,788.08 3 t3 t3 t3 t3 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss - 1,260.67 - - 1,260.67 1,260.67 1,260.67 1,260.67 1,260.67 1 t1 t1 t1 t1 to 5o 5o 5o 5o 5 yeayeayeayeayearsrsrsrsrs 9,886.29 2,901.45 - - 179.90 12,967.64 12,967.64 12,967.64 12,967.64 12,967.64 1 t1 t1 t1 t1 to 5o 5o 5o 5o 5 yeayeayeayeayearsrsrsrsrs 8,106.76 - - 154.93 8,261.69 8,261.69 8,261.69 8,261.69 8,261.69 > 5 yearsrsrsrsrs > 5 yea > 5 yea > 5 yea > 5 yea TTTTTotototototaaaaalllll - 4,086.02 - - 67.07 4,153.09 4,153.09 4,153.09 4,153.09 4,153.09 35,699.00 7,797.66 2,769.20 18,106.67 3,195.40 67,567.93 67,567.93 67,567.93 67,567.93 67,567.93 > 5 yearsrsrsrsrs > 5 yea > 5 yea > 5 yea > 5 yea TTTTTotototototaaaaalllll - - - 67.07 67.07 67.07 67.07 67.07 67.07 31,592.83 1,680.89 18,106.47 3,698.00 55,078.19 55,078.19 55,078.19 55,078.19 55,078.19 150 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 E 45 : SEGMMMMMEEEEENNNNNT IT IT IT IT INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN E 45 : SEG NONONONONOTTTTTE 45 : SEG E 45 : SEG E 45 : SEG a)a)a)a)a) The operating segments are established on the basis of those components of the group that are evaluated regularly by the Executive Committee (the ‘Chief Operating Decision Maker’ as defined in Ind AS 108 - ‘Operating Segments’), in deciding how to allocate resources and in assessing performance. The Group has presented segment information on geographical basis in the consolidated financial statements. Summary of segment Information as at and for the year ended March 31, 2020 and March 31, 2019 is as follows: BBBBBaaaaannnnngggggllllladesh adesh adesh adesh adesh HHHHHooooonnnnng Kg Kg Kg Kg Kooooonnnnnggggg IIIIIndndndndndiaiaiaiaia OOOOOttttthehehehehersrsrsrsrs UUUUUnnnnn-----aaaaallllllololololocccccababababablelelelele TTTTTotototototaaaaalllll EEEEEllllliiiiimmmmmiiiiinnnnnaaaaatttttioioioioionnnnn TTTTTotototototaaaaalllll PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Segment Sales Inter Segment Sales 9,094.54 71,554.08 70,365.19 17,498.77 (9,853.87) (70,457.38) (79,676.26) (15,762.27) 45,567.81 20,266.87 12,168.14 (49,897.16) (17,748.70) (4,401.20) - - TTTTTotototototaaaaal Sl Sl Sl Sl Seeeeegggggmememememennnnnt St St St St Saaaaaleslesleslesles 54,662.35 54,662.35 54,662.35 54,662.35 54,662.35 91,820.95 91,820.95 91,820.95 91,820.95 91,820.95 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 17,498.77 17,498.77 17,498.77 17,498.77 17,498.77 Other Income (59,751.02) (59,751.02) (59,751.02) (59,751.02) (59,751.02) (88,206.09) (88,206.09) (88,206.09) (88,206.09) (88,206.09) (84,077.46) (84,077.46) (84,077.46) (84,077.46) (84,077.46) (15,762.27) (15,762.27) (15,762.27) (15,762.27) (15,762.27) 764.38 (560.74) 1,177.23 (462.16) 3,353.73 (2,683.87) - - TTTTTotototototaaaaal Sl Sl Sl Sl Seeeeegggggmememememennnnnt Rt Rt Rt Rt Reeeeevvvvveeeeennnnnueueueueue 55,426.73 55,426.73 55,426.73 55,426.73 55,426.73 92,998.18 92,998.18 92,998.18 92,998.18 92,998.18 85,887.06 85,887.06 85,887.06 85,887.06 85,887.06 17,498.77 17,498.77 17,498.77 17,498.77 17,498.77 Total Revenue of each segment as a percentage of total revenue of all segment Total Segment Operative Profit Depreciation Total Segment Result before Interest & Taxes Total EBIT of each segment as a percentage of total EBIT of all segment Net Financing Cost Income Tax Expenses ofit for tr tr tr tr the Yhe Yhe Yhe Yhe Yeaeaeaeaearrrrr ofit fo ofit fo PPPPPrrrrrofit fo ofit fo (60,311.77) (60,311.77) (60,311.77) (60,311.77) (60,311.77) (88,668.24) (88,668.24) (88,668.24) (88,668.24) (88,668.24) (86,761.33) (86,761.33) (86,761.33) (86,761.33) (86,761.33) (15,762.27) (15,762.27) (15,762.27) (15,762.27) (15,762.27) 22.01 36.93 34.11 6.95 (23.98) 3,369.98 (35.26) 1,937.98 (34.50) 5,308.26 (6.26) 913.63 (3,524.76) (1,286.83) (7,905.74) (1,038.03) 1,506.88 (896.66) 1,863.10 590.53 (114.56) 1,347.44 1,761.66 (1,290.15) 3,546.59 (2,628.10) (1,172.27) (6,615.59) 25.43 18.39 48.41 345.33 (288.12) 568.31 (749.91) 7.77 (23.54) (10.50) (59.26) (6.72) - - - - - - - - - - - - - - - - - - - - - - - - SSSSSeeeeegggggmememememennnnnt As t As t As t Assetsetsetsetsetsssss t As 22,027.81 35,508.37 55,691.95 5,504.42 6,498.15 125,230.70 Segment Assets as a percentage of Total assets of all segments (17,903.18) (23,791.26) (54,032.10) (8,933.31) (5,480.25) (110,140.10) 17.59 28.35 44.47 4.40 5.19 100.00 (16.25) (21.60) (49.06) (8.11) (4.98) (100.00) 168,512.58 (175,749.78) - - 168,512.58 (175,749.78) 78,002.82 78,002.82 (72,047.06) (72,047.06) - - 246,515.40 246,515.40 246,515.40 246,515.40 246,515.40 78,002.82 78,002.82 78,002.82 78,002.82 78,002.82 168,512.58 168,512.58 168,512.58 168,512.58 168,512.58 (247,796.84) (247,796.84) (247,796.84) (247,796.84) (247,796.84) (72,047.06) (72,047.06) (72,047.06) (72,047.06) (72,047.06) (175,749.78) (175,749.78) (175,749.78) (175,749.78) (175,749.78) 5,295.34 (3,706.77) 389.85 4,905.49 (313.95) (3,392.82) 251,810.74 251,810.74 251,810.74 251,810.74 251,810.74 78,392.67 78,392.67 78,392.67 78,392.67 78,392.67 173,418.07 173,418.07 173,418.07 173,418.07 173,418.07 (251,503.61) (251,503.61) (251,503.61) (251,503.61) (251,503.61) (72,361.00) (72,361.00) (72,361.00) (72,361.00) (72,361.00) (179,142.61) (179,142.61) (179,142.61) (179,142.61) (179,142.61) - - - - - - - - - - - - - - - - - - - - - - - - - - 100.00 (100.00) 11,529.85 (13,755.36) 4,204.40 (2,589.48) 7,325.45 (11,165.87) 100.00 (100.00) - - - - - - - - 11,529.85 (13,755.36) 4,204.40 (2,589.48) 7,325.45 (11,165.87) - - 4,201.04 (2,871.95) 950.58 (1,583.01) 2,172.83 2,172.83 2,172.83 2,172.83 2,172.83 (6,710.92) (6,710.92) (6,710.92) (6,710.92) (6,710.92) 125,230.70 (110,140.10) - - - - - - - - - - - - - - - - - - - - Pearl Global Industries Limited Annual Report 2019-20 151 Notes to consolidated financial statements for the year ended March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs SSSSSeeeeegggggmememememennnnnt Lt Lt Lt Lt Liabiabiabiabiabilililililitititititiesiesiesiesies Segment Liabilities as a percentage of Total Liabilities of all segments SSSSSeeeeegggggmememememennnnnt Ct Ct Ct Ct Caaaaapppppitititititaaaaal El El El El Emmmmmppppplololololoyeyeyeyeyeddddd Segment Capital Employed as a percentage of Total capital employed of all segments l Expppppeeeeendndndndndititititituuuuurrrrreeeee l Ex CCCCCaaaaapppppitititititaaaaal Ex l Ex l Ex Segment Capital Expenditure as a percentage of Total capital expenditure of all segments DDDDDeeeeeppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn BBBBBaaaaannnnngggggllllladesh adesh adesh adesh adesh HHHHHooooonnnnng Kg Kg Kg Kg Kooooonnnnnggggg IIIIIndndndndndiaiaiaiaia OOOOOttttthehehehehersrsrsrsrs UUUUUnnnnn-----aaaaallllllololololocccccababababablelelelele TTTTTotototototaaaaalllll EEEEEllllliiiiimmmmmiiiiinnnnnaaaaatttttioioioioionnnnn TTTTTotototototaaaaalllll 12,479.10 3,973.85 17,536.66 1,449.43 38,437.83 73,876.87 (11,120.43) (1,707.93) (13,762.46) (1,584.21) (33,734.30) (61,909.33) 16.89 5.38 23.74 1.96 52.03 100.00 (17.96) 9,548.71 (2.76) (22.23) (2.56) (54.49) (100.00) 31,534.52 38,155.29 4,054.99 (31,939.68) 51,353.83 (6,782.75) (22,083.33) (40,269.65) (7,349.11) 28,344.84 (48,140.00) 18.59 61.41 74.30 7.90 (62.20) 100.00 (14.09) 1,896.23 (45.87) 1,970.88 (83.65) 1,564.37 (15.27) 248.53 (1,244.68) (4,694.66) (2,042.59) (915.28) 33.38 34.70 27.54 4.38 (13.99) 1,506.88 (896.66) (52.77) 590.53 (22.96) 1,761.66 (10.28) 345.33 (114.56) (1,290.15) (288.13) 58.88 - - - - - - (100.00) 5,680.01 (8,897.21) 100.00 (100.00) 4,204.40 (2,589.50) - - - - - - - - - - - - - - 73,876.87 (61,909.33) - - 51,353.83 (48,140.00) - - 5,680.01 (8,897.21) - - 4,204.40 (2,589.50) bbbbb))))) The Group revenue from sale of garments to external customer are as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Local Customers Foreign Customers (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 8,403.09 154,922.70 6,019.11 164,750.91 ccccc))))) Non- current assets are located within India and outside India: (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs t Assetsetsetsetsetsssss t As NNNNNooooon Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeennnnnt As t As t As within India - outside India - As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 24,818.27 29,495.63 22,484.64 20,975.14 ddddd))))) Revenue from major customer: During the year the Group generates 90% of its external revenues from thirteen customers. E 46 : CONNNNNTTTTTIIIIINNNNNGGGGGEEEEENNNNNT LT LT LT LT LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND CD CD CD CD COOOOOMMMMMMMMMMIIIIITTTTTMMMMMEEEEENNNNNTSTSTSTSTS E 46 : CO NONONONONOTTTTTE 46 : CO E 46 : CO E 46 : CO a)a)a)a)a) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities ( ies ( ies ( ies (TTTTTo to to to to the ex he ex he ex he exttttteeeeennnnnt not p t not p t not p t not prrrrrovovovovovideideideideided fod fod fod fod for)r)r)r)r) ies ( he ex t not p I The Group has reviewed all its pending claims, litigations and other proceedings and has adequately provided for wherever required. However, wherever it is difficult to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgement/decisions pending with various forums/authorities, the Group has disclosed the same as Contingent Liabilities (pending resolution of the respective proceedings). The Group does not expect the outcome of these proceedings to have a material or adverse effect on financial position of the Group. Also, the Group does not expect any reimbursements in respect of the below contingent liabilities. 152 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 - - (i) Claims against the Group not acknowleged as debts corresponding to : Tax Demand as per Sec 143(1) of Income Tax Act , 1961 (with respect to Assessment Year 2014-15) Tax Demand as per Sec 143(1) of Income Tax Act , 1961 (with respect to Assessment Year 2015-16) Tax Demand as per Sec 143(3) of Income Tax Act , 1961 (with respect to Assessment Year 2016-17) - Rectification application has been filled with A.O Tax Demand as per Sec 143(3) of Income Tax Act , 1961 (with respect to Assessment Year 2017-18) - Demand as per TDS (TRACES) portal - CPC - - (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 - 8.30 38.83 16.61 16.52 1.25 98.01 38.83 - 18.43 (ii) Several Legal Cases of labour pending at labour Court, Civil Court and High Court. The Group has assesed and believe that none of these cases, either individually or in aggregate, are expected to have any material adverse effect on its financial statements. However, Since it is difficult to estimate the timings of the cash outflows, if any, no further provision or seperate disclosure is made in books of accounts. (iii) As per the order dated July 13, 2016 issued by Hon’ble Madras High Court, minimum wages shall be paid to the employees retrospectively from December 2014 to June 2016. However, the management is of the view that the wages have to be paid only to the employees working presently in the Group and also no PF & ESI is required to be deducted. Accordingly, the minimum wages, ESI and PF of past employees of ` 288.51 lakh, ` 8.06 lakh and ` 69.25 lakh respectively has not been recorded in books of account. Further, Holding Company has also not accounted for the PF contribution of ` 65.33 lakh and ESI contribution of ` 12.88 lakh due on the wage arrears paid to the present employees during the year ended March 31, 2017. The status of this contingent liability remain unchanged as at reporting date i.e. March 31, 2020. II Irrevocable letter of credit (net of margin) outstanding with banks III Bank Guarantee given to government authorities IV Counter Guarantees given by the Group to the Sales Tax Department over which Key Managerial Personnel have Significant influence - - For enterprise For others 5,862.96 224.29 1.00 0.50 11,569.88 147.06 1.00 0.50 V The Group has given the corporate guarantees to banks on behalf of its foreign subsidiaries (Refer Note No. 44) VI The Group is in the process of evaluating the impact of the recent Supreme Court Judgment in case of “Vivekananda Vidyamandir and Others Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular No. C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of “basic wages” of the relevant employees for the purposes of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. Since there are numerous interpretative issues relating to the judgement, the management has concluded to update provision in books of accounts on receiving further clarity on the subject. Pearl Global Industries Limited Annual Report 2019-20 153 Notes to consolidated financial statements for the year ended March 31, 2020 bbbbb))))) CoCoCoCoCommmmmmmmmmitititititmememememennnnntttttsssss Capital Commitment: Estimated amount of contracts remaining to be executed on the capital account (net of capital advances) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 198.72 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 99.44 The Group does not have any other long term Commitments or material non cancellable contractual commitments, which may have a material impact on the standalone financial statement. E 47 : RELLLLLAAAAATTTTTEEEEED PD PD PD PD PAAAAARRRRRTTTTTY TY TY TY TY TRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOONSNSNSNSNS E 47 : RE E 47 : RE NONONONONOTTTTTE 47 : RE E 47 : RE t of relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies t of r t of r AAAAA..... LLLLLisisisisist of r t of r me of the Rhe Rhe Rhe Rhe Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy me of t me of t NNNNNaaaaame of t e of Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp e of R e of R NNNNNaaaaatttttuuuuurrrrre of R me of t e of R DDDDDooooomesmesmesmesmesttttticicicicic ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich Keeeeeyyyyy ise ov ise ov EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov MMMMMaaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Creative Arts Education Society cise Signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee Little People Education Society cise Sig cise Sig exexexexexeeeeerrrrrcise Sig cise Sig Nim International Commerce LLP PDS Multinational Fashions Limited Pearl Wears PS Arts Private Limited PSS Estates LLP Vau Apparels LLP rseasssss rsea rsearsea OOOOOvvvvveeeeersea 360 Notch Ltd (Formely known as Poeticgem Australia Ltd) Blueprint Design Limited Casa Forma Limited Clover Collection Limited Formerly DS Manufacturing Limited; Designed and Sourced Limited) Clover Collections FZCO (w.e.f. 20.02.2020) Design Arc Asia Limited [(Formerly Design Arc. Limited) ( Design Arc. Limited Formerly Nor France Manufacturing Company Ltd)] Design Arc Europe Limited (Formerly Nor Europe Manufacturing Limited Design Arc FZCO (W.e.f 17.01.2019) Design Arc UK Limited Digital Ecom Techno Private Limited Digital Internet Technologies Limited Fabric & Trims Limited Fareast Vogue Limited Funky Brands Company Limited (Formerly Fullhouse Manufacturing Limited; Nor Delhi Manufacturing Limited FX Import Company Limited FX Import Hongkong Limited Global Textiles Group Limited 154 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 Green Apparel Industries Ltd Green Smart Shirts Limited Grupo Extremo SUR S.A Grupo Sourcing Limited (Bangladesh) Grupo Sourcing Limited (Hongkong) Jcraft Array Limited (w.e.f. 12.04.2018) JJ Star Industrial Limited JSM Trading (FZE.) KIK Service Unit Limited (w.e.f. 22.10.2019) Kindred Brands Ltd (Formerly NW Far-east Limited) Kindred Fashion Limited (w.e.f. 23.10.2018) Kleider Sourcing FZCO (w.e.f 17.01.2019) Kleider Sourcing Hongkong Limited Kleider Sourcing Limited Krayon Sourcing Limited (Formerly Souring Solutions HK Limited) Lilly and Sid Ltd (w.e.f. 10.03.2020) Multinational OSG Services Bangladesh Limited Multinational Textile Group Limited MultiTech Venture Ltd(Mauritius) Nor Europe SPA Nor India Manufacturing Company Limited Nor Lanka Manufacturing Colombo Limited Nor Lanka Manufacturing Limited Norlanka Progress Pvt.Ltd Norwest Industries Limited Pacific Logistics Limited Parc Designs Pvt. Limited (Closed on 30.09.2019) PDS Far-east Limited PDS Asia Star Corporation Limited PDS Far East USA Inc. PDS Global Investments Limited PDS Trading (Shanghai) Company Limited PDS Ventures Limited (w.e.f. 03.07.2018) PG Group Limited PG Home Group Limited PG Home Group SPA (Formerly Pearl GES Home Group SPA) PG Shanghai Mfg Company Limited Poetic Brands Limited Poetic Knitwear Limited Poeticgem International Limited Poeticgem Limited Pearl Global Industries Limited Annual Report 2019-20 155 Notes to consolidated financial statements for the year ended March 31, 2020 Progress Apparels(Bangladesh) Ltd Progress Manufacturing Group Ltd Razamtazz Limited Recovered Clothing Limited (w.e.f 24.07.2018) Redwood Internet Ventures Limited Rising Asia Star Hongkong Limited (Formerly Techno Manufacturing Limited) SACB Holdings Limited Simple Approach (Canada) Limited Simple Approach Limited Smart Notch Industrial Limited Smart Notch Limited (w.e.f. 20.04.2018) Sourcing East West Limited Sourcing Solutions Limited Sourcing Solutions Limited Spring Near East FZCO (w.e.f. 17.01.2019) Spring Near East Manufacturing Company Limited Styleberry Limited Superb Mind Holdings Limited Techno Design Gmbh Techno Design HK Limited (Formerly DPOD Manufacturing Limited Technocian Fashion Private Limited (w.e.f. 20.03.2019) Transnational Textile Group Limited Twin Asia FZCO (w.e.f. 17.01.2019) Twin Asia Limited Zamira Denim Lab Limited Zamira Fashion Limited Zamira Fashion Limited Zhongshan KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Mr. Deepak Seth P) & theiheiheiheiheir rr rr rr rr relelelelelaaaaatttttiviviviviveeeee P) & t (K(K(K(K(KMMMMMP) & t P) & t P) & t Chariman Vice Chairman & Managing Director Mr. Pulkit Seth Whole-Time Director Mrs. Shifalli Seth Mr. Vinod Vaish (till 30.04.2020) Whole-Time Director Mr. Kashmir Singh Rathour(from 28.07.2020) Chief Financial Officer Chief Financial Officer Mr. Raghav Garg (till 30.06.2020) Company Secretary Mr. Sandeep Sabharwal Independent Director Mr. Chittranjan Dua Independent Director Mr. Rajendra Kumar Aneja Independent Director Mr. Anil Nayar Mr. Abhishek Goyal Independent Director Mrs. Madhulika Bhupatkar (from 18-03-2020) Independent Director 156 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 sactioioioioionnnnnsssss::::: sact e of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttties Ties Ties Ties Ties Trrrrraaaaannnnnsact sact e of R Disclosuuuuurrrrre of R e of R Disclos B.B.B.B.B. Disclos Disclos sact e of R Disclos s Signnnnnificificificificificaaaaannnnnt It It It It Innnnnflflflflflueueueueuencncncncnceeeee s Sig ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich KMMMMMP hP hP hP hP haaaaas Sig s Sig ise ov (i) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov s Sig ise ov (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Expenses paid by the Group on their behalf Expenses paid by them on behalf of the Group Interest income losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi losi CCCCClosi losi Amount receivable Loan & advances receivable (inc. interest) (ii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnel (Knel (Knel (Knel (Knel (KMMMMMP)P)P)P)P) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Remuneration paid EPF paid Expenses incurred by him on behalf of the Group Directors sitting fees losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi losi CCCCClosi losi Trade Payable - Payable to KMP he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 3.00 30.00 0.61 4.37 30.00 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 306.71 4.29 306.66 (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 301.51 1.06 30.09 1.60 277.89 1.11 69.78 1.50 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 0.92 16.85 C. Disclosure of Material Transactions: Related Parties having more than 10% interest in each transaction in the ordinary course of business s signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee s sig ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich KMMMMMP hP hP hP hP haaaaas sig s sig ise ov (i) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov s sig ise ov (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ExExExExExpppppeeeeennnnnses p he Grouououououp op op op op on tn tn tn tn theiheiheiheiheir br br br br behehehehehaaaaalllllfffff he Gr ses paaaaaid bid bid bid bid by ty ty ty ty the Gr he Gr ses p ses p he Gr ses p Norwest Industries Limited ExExExExExpppppeeeeennnnnses p he Grouououououppppp he Gr he Gr f of t ses paaaaaid bid bid bid bid by ty ty ty ty thehehehehem om om om om on bn bn bn bn behehehehehaaaaalllllf of t f of t ses p ses p f of the Gr he Gr f of t ses p PDS Multinational Fashion Limited IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe PDS Multinational Fashion Limited he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 3.00 30.00 0.61 4.37 30.00 Pearl Global Industries Limited Annual Report 2019-20 157 Notes to consolidated financial statements for the year ended March 31, 2020 (ii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion pn pn pn pn paaaaaididididid Mr.Pulkit Seth Mrs. Shifalli Seth Mr. Rajkumar Chawla Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg EEEEEPPPPPF pF pF pF pF paaaaaididididid Mr.Pulkit Seth Mrs. Shifalli Seth Mr. Rajkumar Chawla Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg he Grouououououppppp he Gr he Gr f of t f of t ses incuncuncuncuncurrrrrrrrrreeeeed bd bd bd bd by hy hy hy hy hiiiiim om om om om on bn bn bn bn behehehehehaaaaalllllf of t ses i ses i ExExExExExpppppeeeeennnnnses i f of the Gr he Gr f of t ses i Mr. Raj Kumar Chawla Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg rs sittttttiiiiinnnnng Fg Fg Fg Fg Feeeeeeseseseses::::: rs sit rs sit DiDiDiDiDirrrrreeeeectctctctctooooors sit rs sit Mr. Deepak Seth Mr. Anil Nayar Mr. Chittranjan Dua Mr. Abhishek Goyal Mr. Rajendra Aneja 165.00 68.75 - 16.44 16.04 35.28 0.20 0.20 - 0.22 0.22 0.22 - 16.38 4.46 9.25 0.20 0.50 0.30 0.50 0.10 120.00 75.00 44.88 16.44 15.63 5.94 0.22 0.22 0.18 0.22 0.22 0.05 50.07 12.34 6.35 1.02 0.10 0.40 0.40 0.50 0.10 sactioioioioionnnnns ws ws ws ws wititititith rh rh rh rh relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies sact s of trrrrraaaaannnnnsact sact s of t (iii) TTTTTeeeeerrrrrmmmmms as as as as and cnd cnd cnd cnd cooooondndndndnditititititioioioioionnnnns of t s of t sact s of t All the transaction with the related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year end are unsecured and interest free except the interest bearing loan and settlement occurs in cash. (iv) The remuneration of Key managerial Personnel does not include amount in repect of gratuity and leave encashment payable as the same are not determinable as individual basis for the KMP. The liabilities of gratuity and leave encashment are provided for Group as whole on the basis of acturial valuation. (v) Corporate Guarantee given by the Holding Company ••••• ••••• To Standard Chartered Bank, Hongkong Branch for securing credit facilities to its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong for USD 120.00 lakh equivalent to ` 9,046.80 lakh (March 31, 2019 USD 120.00 lakh equivalent to ` 7,800.04 lakh) To Standard Chartered Bank, Hongkong Branch for securing credit facilities to its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong for USD 200.00 lakh equivalent to ` 15,078.00 lakh (March 31, 2019: Nil) 158 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 ••••• To Standard Chartered Bank, Bangladesh Branch for securing credit facilities to its subsidiary Norp Knit Industries Limited, Bangladesh for BDT 9,000.00 lakh equivalent to ` 7,967.43 lakh (March 31, 2019 : BDT 9,000 lakh equivalent to ` 7,389.08 lakh). Above Corporate Guarantees have been given for business purpose. NONONONONOTTTTTE 48 : FO T 2013, BY WY WY WY WY WAAAAAY OY OY OY OY OFFFFF T 2013, B E 48 : FOR DIR DIR DIR DIR DISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEES MS MS MS MS MAAAAANNNNNDDDDDAAAAATTTTTEEEEED BD BD BD BD BY SCY SCY SCY SCY SCHHHHHEEEEEDDDDDUUUUULLLLLE IE IE IE IE IIIIIII OI OI OI OI OF COF COF COF COF COMMMMMPPPPPAAAAANNNNNIIIIIEEEEES ACS ACS ACS ACS ACT 2013, B T 2013, B E 48 : FO E 48 : FO T 2013, B E 48 : FO AAAAADDDDDDDDDDIIIIITTTTTIIIIIOOOOONNNNNAAAAAL IL IL IL IL INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN, R, R, R, R, REEEEEFEFEFEFEFER BR BR BR BR BEEEEELLLLLOOOOOWWWWW::::: (Amount in ` Lakh, unless otherwise stated) . 2018-19 . 2018-19 FFFFF.....YYYYY. 2018-19 . 2018-19 . 2018-19 losloss)s)s)s)s) loslos ofit/( ofit/( ShShShShShaaaaarrrrre ie ie ie ie in pn pn pn pn prrrrrofit/( ofit/(los ofit/( s i.e.e.e.e.e. s i. s i. et Assetsetsetsetsets i. et As et As NNNNNet As s i. et As tttttotototototaaaaal al al al al assssssetsetsetsetsets ms ms ms ms miiiiinnnnnuuuuusssss tttttotototototaaaaal ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies ShShShShShaaaaarrrrre ie ie ie ie in otn otn otn otn otheheheheherrrrr CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe ShShShShShaaaaarrrrre ie ie ie ie in tn tn tn tn totototototaaaaalllll CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd net assssssetsetsetsetsetsssss net a net a net a net a AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt 67.29 31,618.47 32.04 2,150.19 8.95 131.87 27.88 2,282.06 0.00 0.06 24.66 12.97 18.15 1.32 27.64 (0.01) (4.61) (0.68) (309.34) 11,587.79 6,095.14 8,528.04 57,858.40 57,858.40 57,858.40 57,858.40 57,858.40 27.85 14.49 5.83 1,868.69 972.68 391.03 5,072.57 5,072.57 5,072.57 5,072.57 5,072.57 - - 36.96 19.22 34.87 - - (0.01) (3.78) (0.68) (309.34) 544.43 283.03 513.62 1,472.95 1,472.95 1,472.95 1,472.95 1,472.95 29.49 15.34 11.05 2,413.12 1,255.71 904.65 6,545.52 6,545.52 6,545.52 6,545.52 6,545.52 (23.14) (10,871.66) 24.41 1,638.35 - - 20.02 1,638.35 46,986.74 46,986.74 46,986.74 46,986.74 46,986.74 1,153.26 48,140.00 48,140.00 48,140.00 48,140.00 48,140.00 6,710.92 6,710.92 6,710.92 6,710.92 6,710.92 17.10 6,728.02 6,728.02 6,728.02 6,728.02 6,728.02 1,472.95 1,472.95 1,472.95 1,472.95 1,472.95 (100.94) 1,372.01 1,372.01 1,372.01 1,372.01 1,372.01 8,183.87 8,183.87 8,183.87 8,183.87 8,183.87 (83.84) 8,100.03 8,100.03 8,100.03 8,100.03 8,100.03 me of the Ehe Ehe Ehe Ehe Ennnnntttttitititititiesiesiesiesies me of t me of t NNNNNaaaaame of t me of t PPPPPaaaaarrrrreeeeennnnnttttt::::: Pearl Global Industries Limited ubsidiaiaiaiaiarrrrryyyyy::::: ubsid ubsid SSSSSubsid ubsid Indian - Pearl Global Kausal Vikas Limited Pearl Apparel Fashions Limited - Norp Knit Industries Limited Pearl Global Far East Limited Pearl Global (HK) Limited Foreign SSSSSubtubtubtubtubtotototototaaaaalllll Intercompany Elimination & Consolidation Adjustments TTTTTotototototaaaaalllll Non Controlling Interest in subsidiaries GrGrGrGrGraaaaand Tnd Tnd Tnd Tnd Totototototaaaaalllll Pearl Global Industries Limited Annual Report 2019-20 159 Notes to consolidated financial statements for the year ended March 31, 2020 (Amount in ` Lakh, unless otherwise stated) FFFFF.....YYYYY. 2019-20 . 2019-20 . 2019-20 . 2019-20 . 2019-20 losloss)s)s)s)s) loslos ofit/( ShShShShShaaaaarrrrre ie ie ie ie in pn pn pn pn prrrrrofit/( ofit/( ofit/(los ofit/( s i.e.e.e.e.e. et Assetsetsetsetsets i. s i. s i. et As NNNNNet As et As s i. et As tttttotototototaaaaal al al al al assssssetsetsetsetsets ms ms ms ms miiiiinnnnnuuuuusssss tttttotototototaaaaal ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies ShShShShShaaaaarrrrre ie ie ie ie in otn otn otn otn otheheheheherrrrr CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe ShShShShShaaaaarrrrre ie ie ie ie in tn tn tn tn totototototaaaaalllll CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd net assssssetsetsetsetsetsssss net a net a net a net a AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt 61.11 30,587.92 23.05 500.89 (25.64) (557.30) (1.30) (56.43) 0.00 0.01 0.00 26.99 14.38 21.68 0.75 3.91 0.76 13,509.45 7,200.70 10,851.98 62,155.47 62,155.47 62,155.47 62,155.47 62,155.47 (0.03) (1.09) (0.01) 40.17 24.12 22.96 (0.57) (23.73) (0.24) 872.73 524.12 498.80 2,371.97 2,371.97 2,371.97 2,371.97 2,371.97 - - - - - - 52.43 26.75 46.46 1,139.83 581.44 1,009.92 2,173.89 2,173.89 2,173.89 2,173.89 2,173.89 (0.01) (0.55) (0.01) 46.30 25.43 34.71 (0.57) (23.73) (0.24) 2,012.56 1,105.56 1,508.72 4,545.87 4,545.87 4,545.87 4,545.87 4,545.87 (24.17) (12,098.07) (9.16) (199.14) - - (4.58) (199.14) 50,057.40 50,057.40 50,057.40 50,057.40 50,057.40 1,296.44 51,353.84 51,353.84 51,353.84 51,353.84 51,353.84 2,172.83 2,172.83 2,172.83 2,172.83 2,172.83 (16.39) 2,156.44 2,156.44 2,156.44 2,156.44 2,156.44 2,173.89 2,173.89 2,173.89 2,173.89 2,173.89 (126.80) 2,047.09 2,047.09 2,047.09 2,047.09 2,047.09 4,346.73 4,346.73 4,346.73 4,346.73 4,346.73 (143.19) 4,203.54 4,203.54 4,203.54 4,203.54 4,203.54 me of the Ehe Ehe Ehe Ehe Ennnnntttttitititititiesiesiesiesies me of t NNNNNaaaaame of t me of t me of t PPPPPaaaaarrrrreeeeennnnnttttt::::: Pearl Global Industries Limited ubsidiaiaiaiaiarrrrryyyyy::::: ubsid ubsid SSSSSubsid ubsid Indian - Pearl Global Kausal Vikas Limited Pearl Apparel Fashions Limited SBUYS E-Commerce Limited - Norp Knit Industries Limited Pearl Global Far East Limited Pearl Global (HK) Limited Foreign SSSSSubtubtubtubtubtotototototaaaaalllll Intercompany Elimination & Consolidation Adjustments TTTTTotototototaaaaalllll Non Controlling Interest in subsidiaries GrGrGrGrGraaaaand Tnd Tnd Tnd Tnd Totototototaaaaalllll E 49 : LEAAAAASSSSSEEEEESSSSS E 49 : LE NONONONONOTTTTTE 49 : LE E 49 : LE E 49 : LE Until March 31, 2019, the Group recognized leases in accordance with Ind AS 17. A lease was defined as an agreement whereby the lessor conveys to the lessee in return for a series of payments the right to use an asset for an agreed period of time. The lessor and lessee accounted for the lease on the basis of the distribution of the risks and rewards associated with the leased asset. Insofar as all the substantial risks and rewards were transferred to the Group as lessee, the respective leased assets were capitalized at fair value or the lower present value of the minimum lease payments and depreciated using the straight-line method on the basis of the useful life of the underlying asset or the lease term, if this was shorter. The payment obligations resulting from future lease payments were discounted and recognized as a liability. Where the Group was the lessee in operating leases, in other words, if not all material risks and rewards were transferred, the lease or rental payments were recognized directly as expenses in the statement of Profit and Loss. Since April 1, 2019, the Group has recognized leases in accordance with Ind AS 116. This defines a lease as a contract, or part of a contract, whereby the lessor conveys to the lessee the right to use an asset for an agreed period of time in exchange for consideration. se of prrrrractactactactacticicicicicaaaaal exl exl exl exl expppppeeeeedddddieieieieiennnnntttttsssss se of p ach and und und und und use of p se of p ach a TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion an an an an apppppppppprrrrroooooach a ach a se of p ach a Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing 160 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees. The Group has adopted Ind AS 116, effective annual reporting period beginning April 1, 2019 and has applied the standard to its leases, retrospectively, with the cumulative effect of initially applying the standard, recognised on the date of initial application (April 1, 2019). Accordingly, the Group has not restated comparative information, instead, the cumulative effect of initially applying this standard has been recognised as an adjustment to the opening balance of retained earnings as on April 1, 2019. GrGrGrGrGrouououououp ap ap ap ap as a les s a lesseseseseseeeeee s a les s a les s a les On transition, the Group recognised a lease liability measured at the present value of the remaining lease payments. The right-of- use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but discounted using the lessee’s incremental borrowing rate as at April 1, 2019. Accordingly, a right-of-use asset of ` 8,275.87 lakh and a corresponding lease liability of ` 7,877.03 lakh has been recognized. The cumulative effect on transition in retained earnings is ` 349.36 lakh (net of deferred tax of ` 102.38 lakh, Lease equilisation reserve of ` 242.61 lakh, Prepaid Rent of ` 1,093.20 lakh) (for detail please refer note below). The principal portion of the lease payments have been disclosed under cash flow from financing activities. The lease payments for operating leases as per Ind AS 17 Leases, were earlier reported under cash flow from operating activities. The weighted average incremental borrowing rate vary from Company to Company in the Group and has been applied accordingly to lease liabilities recognised in the balance sheet at the date of initial application. On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-of-use asset, and finance cost for interest accrued on lease liability. Some practical expedients permitted by the standard are used, notably: • To not reassess upon transition whether an existing contract contains a lease. The definition of a lease under Ind AS 116 has been applied only to contracts entered into or changed on or after April 01, 2019. For transition, the Group has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of transition by class of asset The recognition exemptions for short-term leases and leases of low-value assets. To apply Ind AS 37 for onerous leases instead of performing an impairment review. • • Presentational changes: As a result of implementing Ind AS 116, the Group has made a some presentational changes in 2019- 2020, notably to present ‘Right-of-use assets’ as a separate line item in the balance sheet and to include lease liabilities in other current and non-current liabilities. • e sheetetetetet e she n Grn Grouououououppppp’’’’’s bs bs bs bs baaaaalllllaaaaancncncncnce she e she n Grn Gr S 116 o act of Ind And And And And AS 116 o S 116 o act of I TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion in in in in immmmmpppppact of I act of I S 116 on Gr e she S 116 o act of I PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Right-of-use assets Other Non Current Assets Current Assets TTTTTotototototaaaaal As l Assetsetsetsetsetsssss l As l As l As Equity Share Capital Other Equity NCI Deferred Tax Liabilities (Net) Lease Liabilities Other Non Current Liabilities Other Current Liabilities TTTTTotototototaaaaal Eql Eql Eql Eql Equuuuuititititity ay ay ay ay and Lnd Lnd Lnd Lnd Liabiabiabiabiabilililililitititititiesiesiesiesies As aAs aAs aAs aAs attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 AAAAApppppppppplllllicicicicicaaaaatttttioioioioionnnnn of Iof Iof Iof Iof Ind And And And And AS 116 S 116 S 116 S 116 S 116 d As Attttt RRRRReeeeevvvvviseiseiseiseised As A d As A d As A d As A AAAAAppppprrrrril 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 - 43,459.78 66,693.56 110,153.34 110,153.34 110,153.34 110,153.34 110,153.34 2,166.39 44,820.35 1,153.26 340.46 - 13,750.99 47,921.89 110,153.34 110,153.34 110,153.34 110,153.34 110,153.34 8,275.88 (784.98) (308.22) 7,182.68 7,182.68 7,182.68 7,182.68 7,182.68 - (349.36) - (102.38) 7,877.03 (242.61) - 7,182.68 7,182.68 7,182.68 7,182.68 7,182.68 8,275.88 42,674.80 66,385.34 117,336.02 117,336.02 117,336.02 117,336.02 117,336.02 2,166.39 44,470.99 1,153.26 238.08 7,877.03 13,508.38 47,921.89 117,336.02 117,336.02 117,336.02 117,336.02 117,336.02 Pearl Global Industries Limited Annual Report 2019-20 161 Notes to consolidated financial statements for the year ended March 31, 2020 The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported as at March 31, 2019 compared to the lease liability as accounted as at April 1, 2019 is primarily due to inclusion of present value of the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per the requirement of Ind AS 116 and exclusion of the commitments for the leases to which the Group has chosen to apply the practical expedient as per the standard. ue of assssssetsetsetsetsetsssss ue of a : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of a ue of a : mov RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss: mov : mov ue of a : mov ld Assetsetsetsetsetsssss ld As ld As seho LLLLLeaeaeaeaeaseho seho sehold As ld As seho GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a ck ack as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ck ack a ch 31, 2019 ch 31, 2019 Cumulative catch-up for previously reported operating leases on implementation of IND AS 116 il 01, 2019 il 01, 2019 ck ack as as as as as at At At At At Appppprrrrril 01, 2019 ck ack a GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a il 01, 2019 il 01, 2019 Add: Additions during the year Add: Reclassified from PPE on account of adoption of Ind AS 116 Less: Disposals / adjustments during the year Add: Exchange Realignment Add: Currency Translation Reserve ch 31, 2020 ch 31, 2020 ck As at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ck As a ck As a GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock As a ch 31, 2020 ch 31, 2020 ck As a iciaiciatttttioioioioion :n :n :n :n : iciaicia AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed Dd Dd Dd Dd Deeeeeppppprrrrricia il 01, 2019 il 01, 2019 As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 2019 Add: Depreciation charge for the year Add: Reclassified from PPE on account of adoption of Ind AS 116 Less: Disposals/adjustments during the year Add: Exchange Realignment Add: Currency Translation Reserve ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ck :ck : ck :ck : NNNNNet Bet Bet Bet Bet Blololololock : ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ----- 8,275.88 8,275.88 352.96 2,903.98 (51.44) (0.42) 678.56 12,159.53 12,159.53 12,159.53 12,159.53 12,159.53 - 1,303.46 69.68 - (0.22) 60.61 1,433.53 1,433.53 1,433.53 1,433.53 1,433.53 10,725.98 10,725.98 10,725.98 10,725.98 10,725.98 In 2019-20, there were no impairment charges recorded for right-of-use assets. ue of reeeeecccccooooogggggnnnnniseiseiseiseised ld ld ld ld liabiabiabiabiabilililililitititititiesiesiesiesies ue of r : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of r ue of r : mov LLLLLeaeaeaeaeasessessessesses: mov : mov ue of r : mov As AAs AAs AAs AAs At Mt Mt Mt Mt Maaaaarrrrrch 31,2020 ch 31,2020 ch 31,2020 ch 31,2020 ch 31,2020 As At April 01, 2019 Cumulative catch-up for previously reported operating leases on implementation of Ind AS 116 As AAs AAs AAs AAs At At At At At Appppprrrrril 01, 2019 (R il 01, 2019 (Reeeeevvvvviseiseiseiseiseddddd))))) il 01, 2019 (R il 01, 2019 (R il 01, 2019 (R Add: Additions during the year Add: Interest exepnse on lease liabilities Less: Repayment of lease liabilities Add: Currency Translation Reserve As AAs AAs AAs AAs At Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 Non-current lease liabilities Current lease liabilities TTTTTotototototaaaaal lea l lea l lea se l se l se liabiabiabiabiabilililililitititititiesiesiesiesies l lease l l lea se l The maturity analysis of lease liabilities is given in Note 44 in the ‘Liquidity risk’ section. LLLLLeaeaeaeaeasessessessesses: C: C: C: C: Caaaaash Fsh Fsh Fsh Fsh Flololololowswswswsws - 7,877.03 7,877.03 7,877.03 7,877.03 7,877.03 7,877.03 313.78 313.78 313.78 313.78 313.78 810.19 (1,603.40) 400.08 7,797.68 7,797.68 7,797.68 7,797.68 7,797.68 6,987.43 810.25 7,797.68 7,797.68 7,797.68 7,797.68 7,797.68 Cash flows from operating activities include cash flows from short-term lease and leases of low-value assets. Cash flows from financing activities include the payment of interest and the principal portion of lease liabilities . 162 Pearl Global Industries Limited Annual Report 2019-20 Notes to consolidated financial statements for the year ended March 31, 2020 Leases committed and not yet commenced: There are no leases commited which have not yet commenced as on reporting date. GrGrGrGrGrouououououp ap ap ap ap as a Ls a Ls a Ls a Ls a Lesesesesessososososorrrrr The Group is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a lessor. The Company accounted for its leases in accordance with Ind AS 116 from the date of initial application. The Group does not have any significant impact on account of sub-lease on the application of this standard. The Group has given its building space, lying under property, plant and equipments, on operating lease through operating lease arrangements. Income from operating leases is recognised as revenue on a straight-line basis over the lease term. Lease income of ` 980.53 lakh (March 31, 2019: ` 814.53 lakh) has been recognised and included under other Income (Refer Note No. 28) E 50 : EVEEEEENNNNNT OT OT OT OT OCCCCCCCCCCOOOOOUUUUURRRRRRRRRRIIIIINNNNNG AG AG AG AG AFFFFFTTTTTEEEEER BR BR BR BR BAAAAALLLLLAAAAANNNNNCCCCCE SE SE SE SE SHHHHHEEEEEEEEEET DT DT DT DT DAAAAATTTTTEEEEE E 50 : EV E 50 : EV NONONONONOTTTTTE 50 : EV E 50 : EV id aid and pnd pnd pnd pnd prrrrroooooppppposeoseoseoseoseddddd::::: id aid a a)a)a)a)a) DivDivDivDivDivideideideideidend pnd pnd pnd pnd paaaaaid a PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs he yearrrrr::::: he yea he yea i.i.i.i.i. DDDDDeeeeeclclclclclaaaaarrrrreeeeed ad ad ad ad and pnd pnd pnd pnd paaaaaid did did did did duuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea Final dividend for the financial year 2018-19: ` 3.00 per share (2017-18: ` 2.00 per share) Including dividend distribution tax of ` 133.68 lakh for the financial year 2018-19 ( ` 89.06 lakh for the financial year 2017-18) ii.ii.ii.ii.ii. PPPPPrrrrroooooppppposeoseoseoseosed fod fod fod fod for ar ar ar ar apppppppppprrrrrovovovovovaaaaal al al al al at tt tt tt tt the Ahe Ahe Ahe Ahe Annnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg s a liabiabiabiabiabilililililititititity)y)y)y)y) s a l s a l (not reeeeecccccooooogggggnnnnniseiseiseiseised ad ad ad ad as a l (not r (not r s a l (not r (not r Final Dividend for financial year 2019-20: Nil per share (2018-19: ` 3.00 per share) Dividend distribution tax (Amount in ` Lakh, unless otherwise stated) FFFFFooooor tr tr tr tr the Yhe Yhe Yhe Yhe Yeaeaeaeaear er er er er endendendendendeddddd ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 FFFFFooooor tr tr tr tr the Yhe Yhe Yhe Yhe Yeaeaeaeaear er er er er endendendendendeddddd ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 783.56 522.34 - - 649.88 133.68 bbbbb))))) In March 2020, the World Health Organisation declared COVID 19 to be a pandemic. Consequent to this, Government of India declared a national lockdown on 25 March 2020, which has impacted the business activities of the Industry and accordingly the Group has also assessed the impact that may result from this pandemic on its liquidity position, carrying amounts of receivables, tangible and intangible assets and other assets / liabilities. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Group has considered internal and external information available till the date of approval of these financial statements and has assessed its situation. In that context and based on the current estimates, the Group believes that COVID 19 is not likely to have any material impact on its financial statements, liquidity or ability to service its debt or other obligations. However, the overall economic environment, being uncertain due to COVID 19, may affect the underlying assumptions and estimates in future, which may differ from those considered as at the date of approval of these financial statements. The Group would closely monitor such developments in future economic conditions and consider their impact on the financial statements of the relevant periods. ccccc))))) No other material events have occurred between the balance sheet date to the date of issue of these financial statements that could affect the values stated in the financial statements. NONONONONOTTTTTE 51 : E 51 : E 51 : E 51 : E 51 : Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Group is required to use specified methods for computing arm’s length price in relation to specified international transactions with its associated enterprises. Further, the Group is required to maintain prescribed information and documents in relation to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and Pearl Global Industries Limited Annual Report 2019-20 163 Notes to consolidated financial statements for the year ended March 31, 2020 other factors, which have been prescribed.The Group is in the process of updating its transfer pricing documentation for the current financial year. Based on the preliminary assessment, the management is of the view that the update would not have a material impact on the tax expense recorded in these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any. NONONONONOTTTTTE 52 : E 52 : E 52 : E 52 : E 52 : The balances of trade receivables, trade payables, financials assets and other assets given are subject to reconciliation and confirmation as on March 31, 2020 and have realisation in ordinary course of business atleast equal to amount at which they are stated in the financial statements. E 53 : E 53 : NONONONONOTTTTTE 53 : E 53 : E 53 : Figures have been rounded off to the nearest lakh upto two decimal places except otherwise stated. l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo l Glo rs of Peaeaeaeaearrrrrl Glo rs of P rs of P d of Dirrrrreeeeectctctctctooooors of P d of Di d of Di f of Boooooaaaaarrrrrd of Di f of B f of B r & on bn bn bn bn behehehehehaaaaalllllf of B r & o r & o FFFFFooooor & o l Glo rs of P d of Di f of B r & o (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si r Si (Ka(Kashshshshshmmmmmiiiiir Si (Ka(Ka r Si (Ka Chief Financial Officer (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 Place of Signature: Gurugram Date: July 28, 2020 164 Pearl Global Industries Limited Annual Report 2019-20 Independent Auditor’s Report To The Members of Pearl Global Industries Limited it of the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss it of t RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ahe Ahe Ahe Ahe Audududududit of t it of t it of t OpOpOpOpOpiiiiinnnnnioioioioionnnnn We have audited the accompanying standalone financial statements of PPPPPeaeaeaeaearrrrrl Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd (“the Company”), l Glo l Glo l Glo which comprise the balance sheet as at March 31, 2020, and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”). In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2020, the Loss (financial performance including other comprehensive income), changes in equity and its cash flows for the year ended on that date. BBBBBaaaaasis fo sis fo sis fo r Op r Op r Opiiiiinnnnnioioioioionnnnn sis for Op sis fo r Op We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report w.r.t the Company: S.S.S.S.S. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs NNNNNooooo..... 1. Adequacy and completeness of disclosures of Related Party Transactions (Refer Note 47 to the accompanying standalone financial statements as at March 31, 2020, forming integral part of the standalone financial statements) The Company has related party transactions which include among others, sale/purchase of goods to its subsidiaries and other related parties. This area was significant to our audit because of: - the significance of transactions with related parties during the year ended March 31, 2020, and it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr OOOOOuuuuur pr pr pr pr prrrrroooooccccceeeeeddddduuuuurrrrres ies ies ies ies inclnclnclnclncludeudeudeudeudeddddd, bu, bu, bu, bu, but wt wt wt wt weeeeerrrrre not l e not liiiiimmmmmitititititeeeeed td td td td tooooo e not l e not l e not l ttttthe fo he follllllololololowwwwwiiiiinnnnnggggg ::::: he fo he fo he fo • Obtaining an understanding of the Company’s policies and procedures in respect of identification of related parties and transactions with them, performed a walkthrough and evaluated the designs of control. We also traced the related parties from declaration given by directors, wherever applicable. Read the minutes of the meetings of Shareholders, Board of Directors and Audit Committee. Read relevant agreements on sample basis and approval process by audit committee and board of directors. • • Pearl Global Industries Limited Annual Report 2019-20 165 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited S.S.S.S.S. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs NNNNNooooo..... - Related party transactions are subject to compliance requirement under the Companies Act, 2013 and SEBI (Listing and Obligation Disclosure Requirements) 2015. 22222 EEEEEvvvvvaaaaallllluuuuuaaaaatttttioioioioion of u n of u n of u n of uncncncncnceeeeerrrrrtttttaaaaaiiiiin tn tn tn tn taaaaax px px px px positositositositositioioioioionnnnns, ls, ls, ls, ls, litititititigigigigigaaaaatttttioioioioionnnnns as as as as andndndndnd n of u rrrrreeeee ccccc o vo vo vo vo veeeeerrrrra ba ba ba ba bi li li li li li ti ti ti ti ty of a y of a y of a y of amoumoumoumoumounnnnnt ou t ou t ou t outttttssssstttttaaaaandndndndndiiiiinnnnng wg wg wg wg wi ti ti ti ti th th th th th taaaaa xxxxx y of a t ou aaaaauuuuuttttthohohohohorrrrritititititiesiesiesiesies (Refer Note 13, Note 26 & Note 46 to the accompanying standalone financial statements as at March 31, 2020, forming integral part of the standalone financial statements) The Company has certain direct and indirect tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes and the status of amount recoverable. The eventual outcome of litigations is uncertain, and the positions taken by the Management of the Company are based on the application of significant judgement and estimation. The review of these matters requires application and interpretation of tax laws and reference to applicable judicial pronouncements. Given the uncertainty and application of significant judgment in this area in terms of the eventual outcome of litigations, we determined this to be a key audit matter. it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr • Tested material trade payables, trade receivables, loans outstanding (to evaluate existence of related party relationship and transactions) with the underlying contracts, confirmation letters and other supporting documents. • Assessed whether the transactions were recorded appropriately and ensured adequacy of the disclosures in the standalone Ind AS financial statements (including assessment of Management evaluation of compliance with Companies Act, 2013 and SEBI (LODR), 2015). • Wherever appropriate, our substantive work was supplemented by controls testing work which encompassed understanding, evaluating and testing key controls in respect of Related Party Transactions. Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of accounting , presentation and disclosure of Related Party Transactions. OOOOOuuuuur pr pr pr pr prrrrroooooccccceeeeeddddduuuuurrrrres ies ies ies ies inclnclnclnclncludeudeudeudeudeddddd, bu, bu, bu, bu, but wt wt wt wt weeeeerrrrre not l e not l e not l e not liiiiimmmmmitititititeeeeed td td td td tooooo e not l ttttthe fo he fo he fo he follllllololololowwwwwiiiiinnnnnggggg ::::: he fo • Obtained details of tax assessments of earlier years and demands as on March 31, 2020 from Management of the Company. • Conducted assessment of the Managements underlying assumptions in estimating the tax position, likelihood of outflow of economic resources being probable, possible or remote in respect of the litigations. • Conducted discussions with in-house tax/ legal counsel. Evaluated the independent confirmations taken by the Management from the consultants representing the Company before the various authorities. • Verifying demand notices received from various tax forums and evaluating the Company’s written responses to those matters (including follow up for the amounts recoverable); and • Assessing the adequacy of the Company’s disclosures. 166 Pearl Global Industries Limited Annual Report 2019-20 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited S.S.S.S.S. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs NNNNNooooo..... it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr This area was significant to our audit because of: - the significance of transactions with related parties during the year ended March 31, 2020, and Related party transactions are subject to compliance requirement under the Companies Act, 2013 and SEBI (Listing and Obligation Disclosure Requirements) 2015. - • Understanding and evaluating process and controls designed and implemented by the Management including for identification and monitoring of significant developments in relation to the litigations thereof. Read the minutes of the meetings of Shareholders, Board of Directors and Audit Committee. Read relevant agreements on sample basis and approval process by audit committee and board of directors. • • • Tested material trade payables, trade receivables, loans outstanding (to evaluate existence of related party relationship and transactions) with the underlying contracts, confirmation letters and other supporting documents. • Assessed whether the transactions were recorded appropriately and ensured adequacy of the disclosures in the standalone Ind AS financial statements (including assessment of Management evaluation of compliance with Companies Act, 2013 and SEBI (LODR), 2015). • Wherever appropriate, our substantive work was supplemented by controls testing work which encompassed understanding, evaluating and testing key controls in respect of Related Party Transactions. Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of accounting , presentation and disclosure of Related Party Transactions. Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of accounting , presentation and disclosure of uncertain tax positions, litigations and recoverability of amount outstanding with tax authorities. IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioion On On On On Otttttheheheheher tr tr tr tr thhhhhaaaaan tn tn tn tn the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttts as as as as and And And And And Audududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Reeeeepppppooooorrrrrt Tt Tt Tt Tt Theheheheherrrrreeeeeooooonnnnn The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the standalone financial statements and our auditor’s report thereon. Pearl Global Industries Limited Annual Report 2019-20 167 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. RRRRResesesesespppppooooonnnnnsibsibsibsibsibilililililititititity of My of My of My of My of Maaaaannnnnaaaaagggggeeeeemememememennnnnt at at at at and Tnd Tnd Tnd Tnd Those C hose C hose C hose Chhhhhaaaaargrgrgrgrgeeeeed wd wd wd wd wititititith Gh Gh Gh Gh Govovovovoveeeeerrrrrnnnnnaaaaancncncncnce foe foe foe foe for tr tr tr tr the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss hose C The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company’s financial reporting process. AAAAAudududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititities fo ies fo ies fo ies for tr tr tr tr the Ahe Ahe Ahe Ahe Audududududit of t it of t it of t it of the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss ies fo it of t Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. 168 Pearl Global Industries Limited Annual Report 2019-20 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. OOOOOtttttheheheheher Mr Mr Mr Mr Maaaaatttttttttteeeeerrrrr Due to the outbreak of COVID-19 pandemic, the consequent nationwide lockdown commencing from March 23, 2020 onwards, we could not visit and carry out the audit processes physically at the Company’s premises. Further, the advisory on “Specific Considerations while conducting Distance Audit/ Remote Audit under current Covid-19 situation” issued by the Auditing and Assurance Standards Board of ICAI, give guidelines for the statutory audit via making arrangements to provide requisite documents/information through electronic medium and minimal physical movement. The entire audit has been carried considering these guidelines and alternative audit procedures as per SAs prescribed by the ICAI. Moreover, our attendance at the physical verification of inventory done by the management was impracticable under these lockdown restrictions imposed by the government and we have therefore, relied on the related alternate audit procedures to obtain comfort over the existence and condition of inventory at year end. Our opinion is not modified in respect of this matter. RRRRReeeeepppppooooorrrrrt ot ot ot ot on On On On On Otttttheheheheher Lr Lr Lr Lr Leeeeegggggaaaaal al al al al and Rnd Rnd Rnd Rnd Reeeeeggggguuuuulllllaaaaatttttooooorrrrry Ry Ry Ry Ry Reeeeeqqqqquuuuuiiiiirrrrreeeeemememememennnnntttttsssss 1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in “““““AAAAAnnnnnnexnexnexnexnexuuuuurrrrre Ae Ae Ae Ae A””””” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 2. As required by Section 143(3) of the Act, based on our audit we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. Pearl Global Industries Limited Annual Report 2019-20 169 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Change in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. d) e) On the basis of the written representations received from the directors as on March 31, 2020 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2020 from being appointed as a director in terms of Section 164 (2) of the Act. f ) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “““““AAAAAnnnnnnexnexnexnexnexuuuuurrrrre Be Be Be Be B”””””..... g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. – Refer Note No. 46 to the standalone financial statements. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. - Refer Note No. 41 to the standalone financial statements. iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. 3. With respect to the matter to be included in the Auditors’ report under Section 197(16): In our opinion and according to the information and explanation given to us, the Company has paid remuneration to its directors during the year is in accordance with the provisions of and limit laid down under section 197 read with Schedule V of the Act. FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co..... a & Co a & Co a & Co Chartered Accountants, Firm Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) k Ag k Ag k Ag Partner Membership Number 073696 L6574 L6574 N:20073696AAAAAAAAAAAAAAAABBBBBL6574 N:20073696A N:20073696A UUUUUDDDDDIIIIIN:20073696A L6574 L6574 N:20073696A Place of Signature: New Delhi Date: July 28, 2020 170 Pearl Global Industries Limited Annual Report 2019-20 Annexure ‘A’ to the Independent Auditors’ Report l Globbbbbaaaaalllll l Glo s of Peaeaeaeaearrrrrl Glo l Glo s of P t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the she she she she stttttaaaaandndndndndaaaaalololololone fine fine fine fine finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnnttttts of P s of P t of e AAAAAnnnnnnexnexnexnexnexuuuuurrrrre ‘e ‘e ‘e ‘e ‘AAAAA’ t’ t’ t’ t’ to to to to to the Ihe Ihe Ihe Ihe Indendendendendepppppeeeeendendendendendennnnnt At At At At Audududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Reeeeepppppooooorrrrrt of e t of e l Glo s of P t of e IIIIIndndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd The Annexure referred to in independent Auditors’ Report to the members of the Company on the standalone financial statements for the year ended March 31, 2020; we report that: i) In respect of fixed assets comprising property, plant and equipment: a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b) The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification. c) According to the information and explanations given to us and the records examined by us, the title deeds of immovable properties (which are included under the head ‘property, plant and equipment’) held in the name of the Company are mortgaged with the banks for securing the long term and short term borrowings raised by the Company. ii) The inventories, except goods in transit, has been physically verified by the Management during the year. In our opinion, the frequency of physical verification followed by the Management is reasonable. No material discrepancies were noticed on verification between the physical stocks and the book records. iii) a) According to the information and explanation given to us during the year, the Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii) (a) of the Order are not applicable. b) & c) In respect of loans granted in earlier financial years, the schedule of repayment of principal and interest is stipulated and there is no overdue amount as at year end. The terms and conditions of grant of such loans are not prejudicial to the interest of the Company In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act in respect of the loans, investments, guarantees provided by it. However, the Company has not granted any security to the parties covered under Section 185 and 186 of the Act. In our opinion and according to the information and explanation given to us, the Company has not accepted any deposits from the public within the meaning of the directives issued by the Reserve Bank of India, provisions of Section 73 to 76 of the Act, any other relevant provisions of the Act and the relevant rules framed thereunder. iv) v) vi) On the basis of available information and explanation provided to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Amendment Rules, 2016 dated July 14, 2016 to the current operations carried out by the Company. Accordingly, the provisions of paragraph 3(vi) of the Companies (Auditor’s Report) Order, 2016 are not applicable to the Company. vii) In respect of Statutory Dues: a) The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income Tax, Goods and Service Tax, Cess and any other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income Tax, Goods and Service Tax, Cess and any other material statutory dues in arrears as at March 31, 2020 for a period of more than six months from the date they became payable. b) According to the records of the Company examined by us and the information and explanations given to us, there were no dues of Income-tax or Sales tax or Service tax or Goods and Services tax or duty of Customs or duty of Excise or Value added tax which have not been deposited by the Company on account of disputes, except for the following: Pearl Global Industries Limited Annual Report 2019-20 171 Annexure ‘A’ to the Independent Auditors’ Report S.S.S.S.S. NNNNNaaaaame ofme ofme ofme ofme of NNNNNooooo..... 1 ttttthe She She She She Stttttaaaaatttttuuuuuttttteeeee Income Tax Act, 1961 NNNNNaaaaatttttuuuuurrrrre of De of De of De of De of Duesuesuesuesues Income Tax Demand AAAAAmoumoumoumoumounnnnnttttt PPPPPeeeeerrrrrioioioioiod td td td td to wo wo wo wo whhhhhichichichichich iiiiin n n n n ` l l l l laaaaakkkkkhhhhh aaaaamoumoumoumoumounnnnnt rt rt rt rt relelelelelaaaaattttteseseseses 8.26 A.Y 2015-16 Income Tax Act, 1961 Income Tax Demand 0.036 A.Y 2015-16 Income Tax Act, 1961 Income Tax Demand 38.83 A.Y 2016-17 Income Tax Act, 1961 Income Tax Demand 16.61 A.Y 2017-18 FFFFFooooorrrrruuuuum wm wm wm wm wh eh eh eh eh errrrreeeee dddddisisisisisp up up up up uttttte is p e is peeeeen dn dn dn dn diiiiinnnnnggggg e is p e is p e is p Rectification U/s 154 - Assessing Officer Commissioner of Income Tax (Appeals) Commissioner of Income Tax (Appeals) Demand U/s 143(1)(a) - Assessing Officer 2 3 4 5 Income Tax Act, 1961 Income Tax Demand 16.52 Upto A.Y. 2019-20 Demand as per traces Portal. viii) On the basis of information and explanation provided to us, the Company has not defaulted in repayment of loans and borrowings to financial institution and bank. The Company has not taken any loan from Government or has not issued any debentures. ix) During the year, the Company did not raise any money by the way of initial public or further public offer (including debt instruments). The term loan taken during the year were applied for the purpose for which the same has been taken. x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year. xi) The Company has paid/provided managerial remuneration in accordance with provisions of Section 197 read with Schedule V to the Companies Act, 2013 as applicable to the Company. xii) The Company is not a Nidhi Company and hence, the provisions of paragraph 3(xii) of the Order are not applicable to the Company. xiii) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of the Company, all transactions with the related parties are in compliance with Section 177 and 188 of the Act, where applicable, and the details have been disclosed in the financial statements, as required by the applicable accounting standards. xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of paragraph 3(xiv) of the Companies (Auditor’s Report) Order, 2016 are not applicable to the Company. xv) The Company has not entered into any non-cash transactions with directors or persons connected with him and hence provisions of Section 192 of the Companies Act, 2013 are not applicable. Accordingly, provisions of clause 3 (xv) of the order are not applicable. xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of paragraph 3(xvi) of the Order are not applicable to the Company. a & Co..... a & Co a & Co FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co Chartered Accountants, Firm Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Ag k Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) Partner Membership Number 073696 N:20073696AAAAAAAAAAAAAAAABBBBBL6574 L6574 L6574 N:20073696A UUUUUDDDDDIIIIIN:20073696A N:20073696A L6574 L6574 N:20073696A Place of Signature: New Delhi Date: July 28, 2020 172 Pearl Global Industries Limited Annual Report 2019-20 Annexure ‘B’ to the Independent Auditors’ Report s of Peaeaeaeaearrrrrlllll s of P t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttts of P s of P t of e AAAAAnnnnnnexnexnexnexnexuuuuurrrrre ‘Be ‘Be ‘Be ‘Be ‘B’ t’ t’ t’ t’ to to to to to the Ihe Ihe Ihe Ihe Indendendendendepppppeeeeendendendendendennnnnt At At At At Audududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Reeeeepppppooooorrrrrt of e t of e s of P t of e GloGloGloGloGlobbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ihe Ihe Ihe Ihe Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act,ct,ct,ct,ct, he Co he Co n 143 of t n 3 of Seeeeectctctctctioioioioion 143 of t n 143 of t n 3 of S ) of Sububububub-se-se-se-se-sectctctctctioioioioion 3 of S n 3 of S ) of S se (se (iiiii) of S ) of S se (se ( l Connnnntttttrrrrroooools uls uls uls uls undendendendender Cr Cr Cr Cr Clllllaaaaauuuuuse ( l Co l Co n 143 of the Co he Co n 143 of t n 3 of S ) of S l Co 2013 (“ttttthe Ahe Ahe Ahe Ahe Act”) ct”) ct”)ct”) 2013 (“ 2013 (“ ct”) 2013 (“ 2013 (“ We have audited the internal financial controls with reference to financial statements of Pearl Global Industries Limited (“(“(“(“(“ttttthe Co he Commmmmpppppaaaaannnnnyyyyy”)”)”)”)”) as of March 31, 2020 in conjunction with our audit of the standalone financial statements of the Company he Co he Co he Co for the year ended on that date. MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt’t’t’t’t’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititity foy foy foy foy for Ir Ir Ir Ir Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co l Co l Connnnntttttrrrrrooooolslslslsls l Co The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act. AAAAAudududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititityyyyy Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system with reference to financial statements. l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to fio fio fio fio finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss l Co g of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co g of I MMMMMeaeaeaeaeannnnniiiiinnnnng of I g of I l Co g of I A company’s internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention Pearl Global Industries Limited Annual Report 2019-20 173 Annexure ‘B’ to the Independent Auditors’ Report (contd...) or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone financial statements. l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to fio fio fio fio finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss l Co s of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co s of I IIIIInnnnnheheheheherrrrreeeeennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititaaaaatttttioioioioionnnnns of I s of I l Co s of I Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. OpOpOpOpOpiiiiinnnnnioioioioionnnnn In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2020, based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co Chartered Accountants, Firm Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Ag k Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) k Ag Partner Membership Number 073696 UUUUUDDDDDIIIIIN:20073696A N:20073696A N:20073696A N:20073696AAAAAAAAAAAAAAAABBBBBL6574 L6574 L6574 L6574 N:20073696A L6574 Place of Signature: New Delhi Date: July 28, 2020 174 Pearl Global Industries Limited Annual Report 2019-20 Balance Sheet as at March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs AsAsAsAsAssetsetsetsetsetsssss I. Investment in subsidiaries Investment - others Property, plant and equipment NNNNNooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss (a) (b) Capital work in progress Right to use assets (c) Investment properties (d) (e) Other Intangible assets Financial assets (f ) (i) (ii) (iii) Loans (iv) Other financial assets (g) Non current tax assets (net) (h) Other non current assets TTTTTotototototaaaaal Nl Nl Nl Nl Nooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss CCCCCuuuuurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss (a) (b) II. Equity share capital (c) Other current assets TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss TTTTTotototototaaaaal al al al al assssssetsetsetsetsetsssss EqEqEqEqEquuuuuititititity ay ay ay ay and lnd lnd lnd lnd liabiabiabiabiabilililililitititititiesiesiesiesies EqEqEqEqEquuuuuititititityyyyy (a) (b) Other equity TTTTTotototototaaaaal el el el el eqqqqquuuuuititititityyyyy LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies NNNNNooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies Financial liabilities (a) Borrowings (i) (ii) Lease Liabilities (iii) Others financial liabilities Provisions (b) (c) Deferred tax liabilities (net) (d) Other non current liabilities TTTTTotototototaaaaal nol nol nol nol nonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies CCCCCuuuuurrrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies (a) Financial liabilities Borrowings Lease Liabilities (i) (ii) (iii) Trade payables Inventories Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than cash and cash equivalents (v) (vi) Other financial assets Loans - Total outstanding due of micro enterprises and small enterprises - Total outstanding due of creditors other than micro enterprises and small enterprises (iv) Other financial liabilities Provisions (b) Other current liabilities (c) (d) Current tax liabilities (net) TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies TTTTTotototototaaaaal el el el el eqqqqquuuuuititititity ay ay ay ay and lnd lnd lnd lnd liabiabiabiabiabilililililitititititiesiesiesiesies Summary of Significant Accounting Policies The accompanying notes form an integral part of these financial statements As per our Report of even date attached FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss Firm’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Agaaaaarrrrrwwwwwaaaaalllll))))) k Agk Ag Partner Membership Number 073696 Place of Signature: New Delhi Date: July 28, 2020 NNNNNotototototeeeee NNNNNooooo..... 4 5 50 6 7 8 9 10 11 13 14 15 9 16 17 18 10 11 14 19 20 21 50 22 23 12 24 21A 50 25 22 24 23 26 3 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 13,173.38 232.50 2,614.35 7,393.26 84.76 11,728.05 142.63 505.20 936.66 469.39 499.40 ---------------------------------------------- 37,779.57 37,779.57 37,779.57 37,779.57 37,779.57 ---------------------------------------------- 14,792.54 692.68 9,740.45 2,059.77 931.61 325.78 87.17 4,989.11 ---------------------------------------------- 33,619.11 33,619.11 33,619.11 33,619.11 33,619.11 ---------------------------------------------- 71,398.68 71,398.68 71,398.68 71,398.68 71,398.68 =================== 2,166.39 28,421.53 ---------------------------------------------- 30,587.92 30,587.92 30,587.92 30,587.92 30,587.92 ---------------------------------------------- 5,384.23 2,813.35 246.97 881.14 248.31 2,997.91 ---------------------------------------------- 12,571.91 12,571.91 12,571.91 12,571.91 12,571.91 ---------------------------------------------- 15,251.01 236.41 331.05 8,800.36 2,747.50 815.18 57.35 - ---------------------------------------------- 28,238.85 28,238.85 28,238.85 28,238.85 28,238.85 ---------------------------------------------- 71,398.68 71,398.68 71,398.68 71,398.68 71,398.68 =================== 13,146.90 159.72 - 7,429.89 114.94 11,726.14 135.13 474.62 844.06 303.15 385.80 ---------------------------------------------- 34,720.35 34,720.35 34,720.35 34,720.35 34,720.35 ---------------------------------------------- 13,513.04 - 11,134.77 2,234.64 1,454.01 349.63 1,566.59 3,912.78 ---------------------------------------------- 34,165.46 34,165.46 34,165.46 34,165.46 34,165.46 ---------------------------------------------- 68,885.81 68,885.81 68,885.81 68,885.81 68,885.81 =================== 2,166.39 29,452.08 ---------------------------------------------- 31,618.47 31,618.47 31,618.47 31,618.47 31,618.47 ---------------------------------------------- 3,185.15 - 222.00 710.08 340.46 3,076.96 ---------------------------------------------- 7,534.65 7,534.65 7,534.65 7,534.65 7,534.65 ---------------------------------------------- 16,182.41 - 63.70 10,450.22 1,938.27 837.89 70.04 190.16 ---------------------------------------------- 29,732.69 29,732.69 29,732.69 29,732.69 29,732.69 ---------------------------------------------- 68,885.81 68,885.81 68,885.81 68,885.81 68,885.81 =================== FFFFFooooor & o r & o r & o r & on bn bn bn bn behehehehehaaaaalllllf of B f of B f of B f of Boooooaaaaarrrrrd of Di d of Di d of Di d of Dirrrrreeeeectctctctctooooors of P rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd r & o f of B d of Di rs of P l Glo (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si (Ka(Kashshshshshmmmmmiiiiir Si r Si (Ka(Ka r Si (Ka Chief Financial Officer Place of Signature: Gurugram Date: July 28, 2020 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 Pearl Global Industries Limited Annual Report 2019-20 175 Statement of Profit and Loss for year ended March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Revenue from operations I II Other income me (I+II)I)I)I)I) me (I+I III TTTTTotototototaaaaal il il il il incncncncncooooome (I+I me (I+I me (I+I IV ExExExExExpppppeeeeennnnnsessessessesses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, work in progress and stock in trade (d) Employee benefits expense (e) Finance costs (f ) Depreciation and amortisation expense (g) Other expenses TTTTTotototototaaaaal exl exl exl exl expppppeeeeennnnnsessessessesses ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmms as as as as and tnd tnd tnd tnd taaaaax (Ix (Ix (Ix (Ix (IIIIIIIIIII-----IIIIIVVVVV ))))) ofit/ ( PPPPPrrrrrofit/ ( ofit/ ( V ofit/ ( VI Exceptional Items VII PPPPPrrrrrofit/ ( ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre te te te te taaaaax (x (x (x (x (VVVVV-----VVVVVI)I)I)I)I) ofit/ ( ofit/ ( ofit/ ( VIII Tax expense: (a) Current tax (b) Deferred tax (c) Adjustment of tax relating to earlier years he year (r (r (r (r (VVVVVIIIIIIIIII-----VVVVVIIIIIIIIIII)I)I)I)I) he yea s) for tr tr tr tr the yea he yea s) fo ofit/(loslosloslosloss) fo s) fo ofit/( IX PPPPPrrrrrofit/( ofit/( he yea s) fo ofit/( X OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe (A) (i) Items that will not be reclassified to profit and loss (a) Re-measurement gains/ (losses) on defined benefit plans (ii) (B) (i) Income tax on items that will not be reclassified to profit and loss Items that will be reclassified to of profit and loss (a) Net movement in effective portion of cash flow hedge reserve (ii) Income tax on items that will be reclassified to profit and loss , net of taaaaaxxxxx , net of t , net of t he yearrrrr, net of t he yea he yea OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea , net of t he yea , net of taaaaaxxxxx , net of t , net of t he yearrrrr, net of t he yea he yea XI TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea , net of t he yea XII Earnings per share: (face value ` 10 p 10 peeeeer shr shr shr shr shaaaaarrrrre)e)e)e)e) 10 p 10 p 10 p 1) Basic (amount in `) 2) Diluted (amount in `) icies icies y of Signnnnnificificificificificaaaaannnnnt At At At At Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg Pooooolllllicies y of Sig y of Sig SSSSSuuuuummmmmmmmmmaaaaarrrrry of Sig icies icies y of Sig The accompanying notes form an integral part of these financial statements As per our Report of even date attached FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss Firm’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Agaaaaarrrrr wwwwwaaaaalllll))))) k Agk Ag Partner Membership Number 073696 Place of Signature: New Delhi Date: July 28, 2020 NNNNNotototototeeeee NNNNNooooo..... (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2020 ch 31, 2019 ch 31, 2020 27 28 29 30 31 32 33 34 35 36 12 37 38 33333 82,533.33 3,338.77 ---------------------------------------------------------- 85,872.10 85,872.10 85,872.10 85,872.10 85,872.10 ---------------------------------------------------------- 28,543.04 11,981.44 (562.59) 15,017.30 2,448.45 1,761.66 25,708.34 ---------------------------------------------------------- 84,897.64 84,897.64 84,897.64 84,897.64 84,897.64 ---------------------------------------------------------- 974.46 (116.05) ---------------------------------------------------------- 1,090.51 1,090.51 1,090.51 1,090.51 1,090.51 421.00 141.83 26.79 ---------------------------------------------------------- 500.89 500.89 500.89 500.89 500.89 ---------------------------------------------------------- 135.15 (47.23) (991.80) 346.57 ---------------------------------------------------------- (557.31) (557.31) (557.31) (557.31) (557.31) ---------------------------------------------------------- (56.42) (56.42) (56.42) (56.42) (56.42) ---------------------------------------------------------- 2.31 2.31 84,025.72 2,630.62 ---------------------------------------------------------- 86,656.34 86,656.34 86,656.34 86,656.34 86,656.34 ---------------------------------------------------------- 26,069.98 16,506.39 (867.40) 13,190.64 2,154.44 1,289.07 25,408.48 ---------------------------------------------------------- 83,751.61 83,751.61 83,751.61 83,751.61 83,751.61 ---------------------------------------------------------- 2,904.73 (280.92) ---------------------------------------------------------- 3,185.65 3,185.65 3,185.65 3,185.65 3,185.65 825.78 16.67 193.01 ---------------------------------------------------------- 2,150.19 2,150.19 2,150.19 2,150.19 2,150.19 ---------------------------------------------------------- 202.70 (70.83) - - ---------------------------------------------------------- 131.87 131.87 131.87 131.87 131.87 ---------------------------------------------------------- 2,282.06 2,282.06 2,282.06 2,282.06 2,282.06 ---------------------------------------------------------- 9.93 9.93 FFFFFooooor & o r & o r & o r & on bn bn bn bn behehehehehaaaaalllllf of B f of B f of B f of Boooooaaaaarrrrrd of Di d of Di d of Di d of Dirrrrreeeeectctctctctooooors of P rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd r & o f of B d of Di rs of P l Glo (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si (Ka(Kashshshshshmmmmmiiiiir Si r Si (Ka(Ka r Si (Ka Chief Financial Officer Place of Signature: Gurugram Date: July 28, 2020 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 176 Pearl Global Industries Limited Annual Report 2019-20 Statement of changes in equity for the year ended March 31, 2020 (Amount in ` Lakh, unless otherwise stated) AAAAA..... EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre Ce Ce Ce Ce Caaaaapppppitititititaaaaalllll As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 Changes during the year ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Changes during the year ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 B.B.B.B.B. OOOOOtttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititityyyyy PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs GGGGGeeeeenenenenenerrrrraaaaalllll RRRRReseeseeseeseeserrrrr vvvvveeeee RRRRReseeseeseeseeserrrrrvvvvves aes aes aes aes and Snd Snd Snd Snd Suuuuurprprprprpllllluuuuusssss SSSSSeeeeecucucucucurrrrrititititityyyyy PPPPPrrrrreeeeemmmmmiuiuiuiuiummmmm RRRRReeeeedededededemmmmmptptptptptioioioioionnnnn RRRRReseeseeseeseeserrrrrvvvvveeeee CCCCCaaaaapppppitititititaaaaalllll AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioionnnnn RRRRRetetetetetaaaaaiiiiineneneneneddddd EEEEEaaaaarrrrrnnnnniiiiinnnnngggggsssss RRRRReseeseeseeseeserrrrr vvvvveeeee BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 4,204.36 17,103.90 95.00 625.95 5,663.16 Profit/(loss) for the year Remeasurement of the benefit plan, net of tax effect he yearrrrr l Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooome fome fome fome fome for tr tr tr tr the yea he yea he yea l Co TTTTTotototototaaaaal Co l Co he yea l Co Dividend paid on Equity Shares Dividend Distribution Tax on Equity Shares - - - - - - - - - - - - - - - - - - - - 2,150.19 131.87 2,282.06 2,282.06 2,282.06 2,282.06 2,282.06 (433.28) (89.06) BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 17,103.90 17,103.90 4,204.36 4,204.36 17,103.90 4,204.36 17,103.90 17,103.90 4,204.36 4,204.36 95.00 95.00 95.00 95.00 95.00 625.95 625.95 625.95 625.95 625.95 7,422.88 7,422.88 7,422.88 7,422.88 7,422.88 Implementation of Ind AS 116: Leases (Refer Note No. 50) Profit/(loss) for the year Net movement in effective portion of cash flow hedge reserve, net of tax effect Remeasurement of the benefit plan, net of tax effect he yearrrrr he yea he yea l Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooome fome fome fome fome for tr tr tr tr the yea l Co l Co TTTTTotototototaaaaal Co he yea l Co Dividend paid on Equity Shares Dividend Distribution Tax on Equity Shares - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (190.61) 500.89 - 87.92 588.81 588.81 588.81 588.81 588.81 (649.88) (133.68) 2,166.39 - 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 - 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 OOOOOtttttheheheheherrrrr TTTTTotototototaaaaal Ol Ol Ol Ol Otttttheheheheherrrrr E qE qE qE qE quuuuuititititityyyyy C oC oC oC oC ommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooom em em em em e EEEEEffeffeffeffeffectctctctctivivivivive Pe Pe Pe Pe Pooooorrrrrtttttioioioioionnnnn of Cof Cof Cof Cof Caaaaash Fsh Fsh Fsh Fsh Flololololowwwww HHHHHeeeeedddddgggggeeeee - - - - - - - - - - - - - - - - - 27,692.37 27,692.37 27,692.37 27,692.37 27,692.37 2,150.19 2,150.19 2,150.19 2,150.19 2,150.19 131.87 131.87 131.87 131.87 131.87 2,282.06 2,282.06 2,282.06 2,282.06 2,282.06 (433.28) (433.28) (433.28) (433.28) (433.28) (89.06) (89.06) (89.06) (89.06) (89.06) 29,452.09 29,452.09 29,452.09 29,452.09 29,452.09 (190.61) (190.61) (190.61) (190.61) (190.61) 500.89 500.89 500.89 500.89 500.89 (645.22) (645.22) (645.22) (645.22) (645.22) (645.22) - 87.92 87.92 87.92 87.92 87.92 (645.22) (645.22) (645.22) (645.22) (645.22) (56.41) (56.41) (56.41) (56.41) (56.41) - - (649.88) (649.88) (649.88) (649.88) (649.88) (133.68) (133.68) (133.68) (133.68) (133.68) ch 31, 2020 ch 31, 2020 BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 17,103.90 17,103.90 4,204.36 4,204.36 17,103.90 4,204.36 17,103.90 17,103.90 4,204.36 4,204.36 95.00 95.00 95.00 95.00 95.00 625.95 625.95 625.95 625.95 625.95 7,037.53 7,037.53 7,037.53 7,037.53 7,037.53 (645.22) (645.22) (645.22) (645.22) (645.22) 28,421.53 28,421.53 28,421.53 28,421.53 28,421.53 Summary of Significant Accounting Policies (Note No. 3) The accompanying notes form an integral part of these financial statements As per our Report of even date attached FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co..... a & Co a & Co a & Co CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss Firm’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Agaaaaarrrrrwwwwwaaaaalllll))))) k Agk Ag Partner Membership Number 073696 Place of Signature: New Delhi Date: July 28, 2020 FFFFFooooor & o r & on bn bn bn bn behehehehehaaaaalllllf of B r & o r & o f of B f of B f of Boooooaaaaarrrrrd of Di d of Di d of Di d of Dirrrrreeeeectctctctctooooors of P rs of Peaeaeaeaearrrrrl Glo rs of P rs of P l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd r & o f of B d of Di rs of P l Glo (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (Ka(Kashshshshshmmmmmiiiiir Si (Ka(Ka r Si r Si r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) (Ka r Si Chief Financial Officer Place of Signature: Gurugram Date: July 28, 2020 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 Pearl Global Industries Limited Annual Report 2019-20 177 Statement of Cash Flow for the year ended March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2020 ch 31, 2019 ch 31, 2020 CCCCCaaaaash flo g activivivivivitititititiesiesiesiesies g act sh flows frws frws frws frws frooooom om om om om opppppeeeeerrrrraaaaatttttiiiiinnnnng act g act sh flo sh flo sh flo g act PPPPPrrrrrofit b ofit befoefoefoefoeforrrrre ae ae ae ae and tnd tnd tnd tnd taaaaaxxxxx ofit b ofit b ofit b AAAAAdjdjdjdjdjuuuuussssstttttmememememennnnnttttts fos fos fos fos forrrrr::::: Depreciation and amortization Interest paid and other borrowing cost Sundry balances written back Grant amortised during the year Amortisation of investment in preference shares Amortisation of deferred rental income Unwinding of discount on security deposits Profit on sale of current investment - mutual Fund Rental income Interest income Fair value loss (gain) on financial assets measured at fair value through profit and loss Income on corporate guarantee Mark to market (gain) / loss on forward contract Amortisation of deferred asset - security deposit paid Loss Allowance for doubtful debts Bad debts written off Others ofit befoefoefoefoeforrrrre we we we we wooooorrrrrkkkkkiiiiinnnnng cg cg cg cg caaaaapppppitititititaaaaal chl chl chl chl chaaaaannnnngggggeseseseses ofit b ofit b OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng pg pg pg pg prrrrrofit b ofit b MMMMMovovovovoveeeeemememememennnnnt it it it it in wn wn wn wn wooooorrrrrkkkkkiiiiinnnnng cg cg cg cg caaaaapppppitititititaaaaalllll::::: (Increase)/decrease in trade receivables (Increase)/decrease in other non-current financial assets (Increase)/decrease in other current financial assets (Increase)/decrease in other non-current assets (Increase)/decrease in other current assets (Increase)/decrease in inventories Increase/(decrease) in trade payables Increase/(decrease) in other non-current financial liabilities Increase/(decrease) in other current financial liabilities Increase/(decrease) in non-current provisions Increase/(decrease) in current provisions Increase/(decrease) in other non-current liabilities Increase/(decrease) in other current liabilities CCCCCaaaaash gsh gsh gsh gsh geeeeenenenenenerrrrraaaaattttteeeeed frd frd frd frd frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss Tax paid on dividend Direct tax paid (net of refunds) CCCCCaaaaash flo sh flo sh flo sh flow bw bw bw bw befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss sh flo ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss::::: (Profit)/loss on sale of fixed assets Impairment of investment in subsidiaries g activivivivivitititititiesiesiesiesies g act sh innnnnflofloflofloflow frw frw frw frw frooooom/(m/(m/(m/(m/(uuuuusesesesesed id id id id innnnn) o) o) o) o) opppppeeeeerrrrraaaaatttttiiiiinnnnng act g act sh i NNNNNet cet cet cet cet caaaaash i sh i g act sh i ( A ) ( A ) ( A ) ( A ) ( A ) 1,090.51 3,185.65 1,761.66 2,448.45 37.34 (1.00) - (32.08) 157.41 (73.79) (980.53) (249.62) (29.42) (138.40) 462.80 (154.26) 47.92 - 116.91 ---------------------------------------------------------- 4,463.90 4,463.90 4,463.90 4,463.90 4,463.90 1,346.40 (208.67) (289.34) (74.80) (1,091.78) (1,279.50) (1,380.19) (4.35) 453.58 306.21 (12.70) (46.98) (9.46) ---------------------------------------------------------- 2,172.36 2,172.36 2,172.36 2,172.36 2,172.36 (133.59) (738.87) ---------------------------------------------------------- 1,299.90 1,299.90 1,299.90 1,299.90 1,299.90 (143.29) 27.24 ---------------------------------------------------------- 1,183.86 1,183.86 1,183.86 1,183.86 1,183.86 ---------------------------------------------------------- 1,289.07 1,961.06 (55.16) (1.00) (12.98) (31.67) (13.48) (218.20) (814.53) (211.93) 133.64 (161.31) (247.24) 42.22 391.92 1.41 - ---------------------------------------------------------- 5,237.47 5,237.47 5,237.47 5,237.47 5,237.47 (2,779.71) (325.54) (266.41) (88.95) (46.43) (1,514.18) 3,472.93 68.74 131.24 53.63 15.15 (529.15) 258.64 ---------------------------------------------------------- 3,687.43 3,687.43 3,687.43 3,687.43 3,687.43 (89.06) (650.10) ---------------------------------------------------------- 2,948.27 2,948.27 2,948.27 2,948.27 2,948.27 (1,719.28) 1,438.36 ---------------------------------------------------------- 2,667.35 2,667.35 2,667.35 2,667.35 2,667.35 ---------------------------------------------------------- 178 Pearl Global Industries Limited Annual Report 2019-20 Statement of Cash Flow for the year ended March 31, 2020 (Contd.) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2020 ch 31, 2019 ch 31, 2020 CCCCCaaaaash flo g activivivivivitititititiesiesiesiesies g act sh flows frws frws frws frws frooooom im im im im innnnnvvvvvesesesesestttttiiiiinnnnng act g act sh flo sh flo g act sh flo Purchase of property, plant and equipment(Including ROU, net with lease liabilities) Sale proceeds of property, plant and equipment (Increase)/decrease in capital work in progress Sale/(Purchase) of investment properties Purchase of Intangible assets (Increase)/decrease in capital advances Increase/(decrease) in capital creditor (Increase)/decrease in Investment in subsidiaries (Increase)/decrease in non-current investment - Others (Increase)/decrease in current investment - Others (Increase)/decrease in non-current Loans (Increase)/decrease in current Loans (Increase)/decrease in bank deposit Interest received Rent received NNNNNet Cet Cet Cet Cet Caaaaash Fsh Fsh Fsh Fsh Frrrrrooooom/ (m/ (m/ (m/ (m/ (UUUUUsesesesesed Id Id Id Id Innnnn) I) I) I) I) Innnnnvvvvvesesesesestttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies ( B ) ( B ) ( B ) ( B ) ( B ) g activivivivivitititititiesiesiesiesies g act g act sh flows frws frws frws frws frooooom fim fim fim fim finnnnnaaaaancincincincincinnnnng act sh flo sh flo CCCCCaaaaash flo g act sh flo Increase/ (decrease) in long term borrowings Government grant received Increase/ (decrease) in short term borrowings Increase in Lease Liabilities Dividend paid (Net of Tax) Other borrowing cost Interest paid g activivivivivitititititiesiesiesiesies g act g act sh innnnnflofloflofloflow frw frw frw frw frooooom/(m/(m/(m/(m/(uuuuusesesesesed id id id id innnnn) fi) fi) fi) fi) finnnnnaaaaancincincincincinnnnng act sh i sh i NNNNNet cet cet cet cet caaaaash i g act sh i ( C ) ( C ) ( C ) ( C ) ( C ) sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C) A+B+C) A+B+C) sh esh e sh e sh and cnd cnd cnd cnd caaaaash e sh a se) In cn cn cn cn caaaaash a sh ash a se) I se) I se (se (dededededecccccrrrrreaeaeaeaease) I se (se ( NNNNNet Iet Iet Iet Iet Incncncncncrrrrreaeaeaeaease ( A+B+C) A+B+C) se) I Opening balance of cash and cash equivalents sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote noe noe noe noe no. 17) . 17) . 17) sh esh e sh e sh and cnd cnd cnd cnd caaaaash e sh ash a sh a TTTTTotototototaaaaal cl cl cl cl caaaaash a . 17) . 17) sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss sh esh e sh e sh ash and cnd cnd cnd cnd caaaaash e sh ash a s of caaaaash a s of c CoCoCoCoCommmmmpppppooooonenenenenennnnnttttts of c s of c s of c Cash, Cheque/drafts on hand With banks - Current account With banks - Deposit account sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote noe noe noe noe no. 17) . 17) . 17) sh esh e sh e sh and cnd cnd cnd cnd caaaaash e sh ash a sh a TTTTTotototototaaaaal cl cl cl cl caaaaash a . 17) . 17) Summary of Significant Accounting Policies The accompanying notes form an integral part of these financial statements (4,564.85) 264.20 (72.78) 36.61 (17.57) (38.80) (819.17) 109.25 (7.50) (589.47) (30.58) 23.85 1,288.69 223.99 980.53 ---------------------------------------------------------- (3,213.61) (3,213.61) (3,213.61) (3,213.61) (3,213.61) ---------------------------------------------------------- 2,763.29 - (801.55) 2,948.32 (649.88) (256.88) (2,148.44) ---------------------------------------------------------- 1,854.86 1,854.86 1,854.86 1,854.86 1,854.86 ---------------------------------------------------------- (174.89) (174.89) (174.89) (174.89) (174.89) 2,234.64 ---------------------------------------------------------- 2,059.77 2,059.77 2,059.77 2,059.77 2,059.77 ---------------------------------------------------------- 148.92 1,806.62 104.23 ---------------------------------------------------------- 2,059.77 2,059.77 2,059.77 2,059.77 2,059.77 ---------------------------------------------------------- 3 (1,908.09) 1,884.63 (105.55) (1.29) (27.65) (14.54) 800.73 - 9.54 717.18 (22.93) (14.64) (53.43) 184.02 814.53 ---------------------------------------------------------- 2,262.51 2,262.51 2,262.51 2,262.51 2,262.51 ---------------------------------------------------------- (747.59) 144.61 (2,104.14) - (430.98) 350.72 (1,966.57) ---------------------------------------------------------- (4,753.96) (4,753.96) (4,753.96) (4,753.96) (4,753.96) ---------------------------------------------------------- 175.90 175.90 175.90 175.90 175.90 2,058.74 ---------------------------------------------------------- 2,234.64 2,234.64 2,234.64 2,234.64 2,234.64 ---------------------------------------------------------- 247.51 1,987.13 - ---------------------------------------------------------- 2,234.64 2,234.64 2,234.64 2,234.64 2,234.64 ---------------------------------------------------------- As per our Report of even date attached FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss Firm’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Agaaaaarrrrrwwwwwaaaaalllll))))) k Agk Ag Partner Membership Number 073696 Place of Signature: New Delhi Date: July 28, 2020 FFFFFooooor & o r & o r & o r & on bn bn bn bn behehehehehaaaaalllllf of B f of B f of B f of Boooooaaaaarrrrrd of Di d of Di d of Di d of Dirrrrreeeeectctctctctooooors of P rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd r & o f of B d of Di rs of P l Glo (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si (Ka(Kashshshshshmmmmmiiiiir Si r Si (Ka(Ka r Si (Ka Chief Financial Officer Place of Signature: Gurugram Date: July 28, 2020 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 Pearl Global Industries Limited Annual Report 2019-20 179 Notes to standalone financial statements for the year ended March 31, 2020 E 1: CORRRRRPPPPPOOOOORRRRRAAAAATTTTTE INE INE INE INE INFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN E 1: CO NONONONONOTTTTTE 1: CO E 1: CO E 1: CO Pearl Global Industries Limited is a public limited Company domiciled in India and has its registered office at A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028. The company is primarily engaged in manufacturing, sourcing and export of ready to wear apparels through its facilities and operations in India and overseas. The Company has its primary listings on Bombay Stock Exchange and National Stock Exchange in India. The financial statements were authorised for issue in accordance with a resolution of the board of directors on July 28, 2020. E 2: BASSSSS IIIII S OS OS OS OS OF PF PF PF PF PRRRRR EEEEE PPPPPAAAAA RRRRR AAAAATTTTT IIIII OOOOO N AN AN AN AN ANNNNN DDDDD E 2: BA E 2: BA N ON ON ON ON OTTTTT E 2: BA E 2: BA MMMMMEEEEEAAAAASSSSSUUUUURRRRREEEEEMMMMMEEEEENNNNNTTTTT t of Commmmmpppppllllliaiaiaiaiancncncncnceeeee : : : : : The Financial Statements are t of Co t of Co SSSSStttttaaaaattttteeeeemememememennnnnt of Co t of Co prepared on an accrual basis under historical cost Convention except for certain financial instruments which are measured at fair value. These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Companies Act, 2013, as applicable. The accounting policies are applied consistently to all the periods presented in the financial statements. nd pnd prrrrreseeseeseeseesennnnntttttaaaaattttti oi oi oi oi onnnnn : : : : : The financial nd pnd p sis of Prrrrreeeeepppppaaaaarrrrraaaaattttti oi oi oi oi on an an an an and p sis of P sis of P BBBBBaaaaasis of P sis of P statements are prepared under the historical cost convention except for certain financial assets and liabilities (including derivative financial instruments) that are measured at fair value or amortised cost. All assets and liabilities have been classified as current or noncurrent according to the Company’s operating cycle and other criteria set out in the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current non-current classification of assets and liabilities. FFFFFuuuuunctnctnctnctnctioioioioionnnnnaaaaal al al al al and Pnd Pnd Pnd Pnd Prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioion Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncyyyyy The financial statements are presented in ` and all values are rounded to the nearest lakhs upto two decimal places except otherwise stated. GGGGGoooooiiiiinnnnng Co g Cog Co g Co g Concncncncnceeeeerrrrrnnnnn The Board of Directors have considered the financial position of the Company at 31st March 2020 and the projected cash flows and financial performance of the Company for at least twelve months from the date of approval of these financial statements as well as planned cost and cash improvement actions, and believe that the plan for sustained profitability remains on course. The Board of Directors have taken actions to ensure that appropriate long-term cash resources are in place at the date of signing the accounts to fund the Company’s operations. ly 24, 2020 ly 24, 2020 t accccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrooooonounounounounouncncncncnceeeeemememememennnnnttttts ds ds ds ds daaaaattttteeeeed Jd Jd Jd Jd Juuuuuly 24, 2020 t ac t ac RRRRReeeeeccccceeeeennnnnt ac ly 24, 2020 ly 24, 2020 t ac y of Corprprprprpooooorrrrraaaaattttte Ae Ae Ae Ae Affffffffffaaaaaiiiiirs ars ars ars ars arrrrre ae ae ae ae as us us us us undendendendenderrrrr:-:-:-:-:- y of Co y of Co notnotnotnotnotifieifieifieifieified bd bd bd bd by My My My My Miiiiinnnnnisisisisistttttrrrrry of Co y of Co a)a)a)a)a) n of Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss n of F n of F IIIIInd And And And And AS 1 PS 1 PS 1 PS 1 PS 1 Prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioion of F n of F The term “Material” has been defined as: Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. Materiality depends on the nature or magnitude of information, or both. An entity assesses whether information, either individually or in combination with other information, is material in the context of its financial statements taken as a whole. Assessing whether information could reasonably be expected to influence decisions made by the primary users of a specific reporting entity ‘s general purpose financial statements requires an entity to consider the characteristics of those users while also considering the entity ‘s own circumstances bbbbb))))) icies, Chhhhhaaaaannnnnggggges ies ies ies ies in An An An An Accccccccccououououounnnnntttttiiiiinnnnnggggg icies, C icies, C IIIIInd And And And And AS 8, AS 8, AS 8, AS 8, AS 8, Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg Pooooolllllicies, C icies, C EEEEEssssstttttiiiiimmmmmaaaaatttttes aes aes aes aes and End End End End Errrrrrrrrrooooorsrsrsrsrs The term-Material, used in this Standard shall have the same meaning as assigned to it in paragraph 7 of Ind AS 1 ccccc))))) s afttttteeeeer tr tr tr tr the Rhe Rhe Rhe Rhe Reeeeepppppooooorrrrrtttttiiiiinnnnng Pg Pg Pg Pg Peeeeerrrrrioioioioioddddd s af S 10 – Evvvvveeeeennnnnttttts af s af S 10 – E IIIIInd And And And And AS 10 – E S 10 – E s af S 10 – E If non-adjusting events after the reporting period are material, non-disclosure could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. Accordingly, an entity shall disclose the nature of the event and an estimate of its financial effect, or a statement that such an estimate cannot be made for each material category of non-adjusting event after the reporting period ddddd))))) IIIIInd And And And And AS 37 – P S 37 – P S 37 – P S 37 – Prrrrrovovovovovisioisioisioisioisionnnnns, Co s, Co s, Co s, Connnnntttttiiiiinnnnngggggeeeeennnnnt Lt Lt Lt Lt Liabiabiabiabiabilililililititititities a ies a ies a ies andndndndnd S 37 – P s, Co ies a t Assetsetsetsetsetsssss t As t As CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt As t As A management or Board decision to restructure taken 180 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 before the end of the reporting period does not give rise to a constructive obligation at the end of the reporting period. If an entity starts to implement a restructuring plan, or announces its main features to those affected, only after the reporting period, disclosure is required under Ind AS 10 Events after the Reporting Period, if the restructuring is material and non-disclosure could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity e)e)e)e)e) S 116 – Leaeaeaeaeasessessessesses S 116 – L S 116 – L IIIIInd And And And And AS 116 – L S 116 – L Practical Expedient has been issued which permits lessees not to account for COVID related concessions as a lease modification. The practical expedient has been made applicable from accounting period starting from April 1, 2020. fffff ))))) s Combmbmbmbmbiiiiinnnnnaaaaatttttioioioioionnnnnsssss s Co s Co S 103 – Buuuuusisisisisinesnesnesnesness Co S 103 – B S 103 – B IIIIInd And And And And AS 103 – B s Co S 103 – B An entity shall determine whether a transaction or other event is a business combination by applying the definition in this Ind AS, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, the reporting entity shall account for the transaction or other event as an asset acquisition. Paragraphs B5–B12D provide guidance on identifying a business combination and the definition of a business. Certain other changes include definition of Business and three elements of business such as Input, Process, Output and changes in the Appendix to the IND AS 103. ggggg ))))) Certain other changes in IND AS 107 & 109 with respect to Hedge Accounting Disclosures, temporary exceptions from applying specific hedge accounting requirements and Transition for hedge accounting The Company is evaluating the requirements of these pronouncements and its affects on the financial statement. AAAAApppppppppplllllicicicicicaaaaatttttioioioioion of Nn of Nn of Nn of Nn of Neeeeew Aw Aw Aw Aw Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg Prrrrrooooonounounounounouncncncncnceeeeemememememennnnntttttsssss The following Ind As pronouncements were applied by the Company during the year: a) b) Ind AS 116 Leases w.e.f April 1, 2019. Ind AS 12 Appendix C - Uncertainity over Income tax treatments c) Amendments to Ind AS 19 - Plan Amendment curtainment & settlement w.e.f April 1, 2019. E 3: SIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT AT AT AT AT ACCCCCCCCCCOOOOOUUUUUNNNNNTTTTTIIIIINNNNNG PG PG PG PG POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS E 3: SI NONONONONOTTTTTE 3: SI E 3: SI E 3: SI a)a)a)a)a) SigSigSigSigSignnnnnificificificificificaaaaannnnnt ac es andndndndnd es a s, estttttiiiiimmmmmaaaaatttttes a es a s, es t accccccououououounnnnntttttiiiiinnnnng jg jg jg jg judududududgggggeeeeemememememennnnnttttts, es s, es t ac t ac es a s, es t ac aaaaassssssssssuuuuummmmmptptptptptioioioioionnnnnsssss In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the company’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively. JJJJJudududududgggggeeeeemememememennnnntttttsssss Information about the judgements made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements as given below: • In respect of lease payments, determination whether arrangements contain a lease and determination of cancellable and non-cancellable tenure of leases (IND AS 116) • Classification of financial assets: assessment of business model within which the assets are held and assessment of whether the contractual terms of the financial asset are solely payments of principal and interest on the principal amount outstanding • Useful lives of Property, plant and equipment and Intangible Assets Employee benefit plans Amortization of Government Grant • • • Determination of Provision of income taxes vis-à-vis anticipated tax issues and final tax outcomes of pending matters. nd estttttiiiiimmmmmaaaaatttttioioioioion un un un un uncncncncnceeeeerrrrrtttttaaaaaiiiiinnnnntttttiesiesiesiesies nd es AsAsAsAsAssssssuuuuummmmmptptptptptioioioioionnnnns as as as as and es nd es nd es Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment included in the following notes: • measurement of defined benefit obligations and planned assets: key actuarial assumptions. • • recognition of deferred tax assets: availability of future taxable profit against which carry-forward tax losses can be used. impairment of financial assets. Pearl Global Industries Limited Annual Report 2019-20 181 Notes to standalone financial statements for the year ended March 31, 2020 • • • recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources. impairment test of non-financial assets: key assumptions used in estimating recoverable cash flows. fair value measurement of financial instruments. sificaaaaatttttioioioioionnnnn sific t clt claaaaassssssific sific t clt cl bbbbb))))) CCCCCuuuuurrrrrrrrrreeeeennnnnt vt vt vt vt veeeeersrsrsrsrsuuuuus nos nos nos nos nonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt cl sific The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. AsAsAsAsAssetsetsetsetsetsssss::::: An asset is treated as current when it is: a) Expected to be realised or intended to be sold or consumed in normal operating cycle. b) Held primarily for the purpose of trading c) Expected to be realised within twelve months after the reporting period, or d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies::::: A liability is current when: (a) It is expected to be settled in normal operating cycle (b) It is held primarily for the purpose of trading (c) It is due to be settled within twelve months after the reporting period, or (d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non- current assets and liabilities. OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng cg cg cg cg cycleycleycleycleycle: : : : : The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle. E) an dn dn dn dn d E) a t (PPPPPP E) a E) a t (P nd Equuuuu iiiiipppppm em em em em ennnnnt (P t (P nd Eq nd Eq t a ccccc))))) PPPPPrrrrroooooppppp eeeeerrrrr ttttt yyyyy, P, P, P, P, Plllllaaaaannnnnt a t a t and Eq E) a t (P nd Eq t a DDDDDeeeeeppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn Property, plant and equipment and capital work in progress are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Such cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct services, any other costs directly attributable to bringing the assets to its working condition for their intended use and cost of replacing part of the plant and equipment and borrowing costs for long- term construction projects if the recognition criteria are met. When parts of an item of PPE having significant costs have different useful lives, then they are accounted for as separate items (major components) of property, plant & equipment. An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS::::: On transition to Ind AS, the Company has elected to continue with the carrying value of all its property, plant and equipment as at 1 April 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such property, plant and equipment. SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt ct ct ct ct cososososostttttsssss: : : : : The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item of property, plant and equipment, if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably with the carrying amount of the replaced part getting derecognised. The cost for day-to-day servicing of property, plant and equipment are recognised in statement of profit and loss as and when incurred. DDDDDeeeeecccccooooommmmmmmmmmisisisisissiosiosiosiosionnnnniiiiinnnnng Cos s : g Costtttts : s : g Cos g Cos s : The present value of the s : g Cos expected cost for the decommissioning of an asset, if any, after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. (as applicable) CCCCCaaaaapppppitititititaaaaal wl wl wl wl wooooorrrrrk ik ik ik ik in pn pn pn pn prrrrrooooogggggrrrrresesesesessssss : : : : : Capital work in progress comprises the cost of fixed assets that are not ready for their intended use at the reporting date. Cost comprises of purchase cost, related acquisition expenses, borrowing costs and other direct expenditure. Depreciation is provided on a pro-rata basis on the straight- line basis on the estimated useful life prescribed under Schedule II to Companies Act , 2013 with the following exception : 182 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 - - - Fixed asset costing upto ` 5000 has been fully depreciated during the financial year Leasehold land has been amortised over the lease term. Freehold Land is not depreciated. Depreciation Method, useful lives and residual values are reviewed at each financial year end and adjusted, if appropriate. ddddd))))) IIIIInnnnnvvvvvesesesesestttttmememememennnnnt Pt Pt Pt Pt Prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies Property that is held for rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any. The Company, based on technical assessment made by management, depreciates the building over estimated useful life of 60 years. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS: : : : : On transition to Ind AS, the Company has elected to continue with the carrying value of all its investment properties as at 1 April 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such investment properties. e)e)e)e)e) OOOOOtttttheheheheher Ir Ir Ir Ir Innnnntttttaaaaannnnngggggibibibibible ale ale ale ale assssssetsetsetsetsetsssss nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea RRRRReeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea nd mea Intangible assets that are acquired by the Company are measured initially at cost. Intangible assets with finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses, if any. All expenditures, qualifying as Intangible Assets are amortized over estimated useful life. Specialized softwares are amortized over a period of 3 years or license period whichever is earlier. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS On transition to Ind AS, the Company has elected to continue with the carrying value of all its intangible assets recognized as at April 01, 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such intangible assets. t Expppppeeeeendndndndndititititituuuuurrrrreeeee : : : : : Subsequent expenditure is t Ex ubseubseqqqqqueueueueuennnnnt Ex t Ex ubseubse SSSSSubse t Ex capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognized in Statement of Profit and Loss as incurred. AAAAAmomomomomorrrrrtttttisaisaisaisaisatttttioioioioion an an an an and und und und und usefsefsefsefsefuuuuul ll ll ll ll liviviviviveseseseses::::: Intangible assets with finite lives are amortised over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. The amortisation method, residual value and the useful lives of intangible assets are reviewed annually and adjusted as necessary. fffff ))))) BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnng cg cg cg cg cososososostttttsssss Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use. ggggg ))))) FFFFFooooorrrrreigeigeigeigeign Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncy Ty Ty Ty Ty Trrrrraaaaannnnnsact sactioioioioionnnnns as as as as and Tnd Tnd Tnd Tnd Trrrrraaaaannnnnslslslslslaaaaatttttioioioioionnnnnsssss sact sact sact FFFFFuuuuunctnctnctnctnctioioioioionnnnnaaaaal al al al al and pnd pnd pnd pnd prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioionnnnnaaaaal cul cul cul cul currrrrrrrrreeeeencncncncncyyyyy The Company’s financial statements are presented in Indian Rupees (`) which is also the Company’s functional currency. Functional currency is the currency of the primary economic environment in which a Company operates and is normally the currency in which the Pearl Global Industries Limited Annual Report 2019-20 183 Notes to standalone financial statements for the year ended March 31, 2020 Company primarily generates and expends cash. All the financial information presented in ‘ except where otherwise stated. sactioioioioionnnnns as as as as and bnd bnd bnd bnd baaaaalllllaaaaancncncncnceseseseses sact TTTTTrrrrraaaaannnnnsact sact sact Transactions in foreign currencies are translated into the functional currency of the Company at the exchange rates at the date the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date.Non-monetary assets and liabilities that are measured at fair value in a foreign currencies are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and iabilities that are measured in terms of historical cost are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings. Advaces received or paid in foreign currency are recognised at exchange rate on the date of transaction and not re- translated. hhhhh))))) RRRRReeeeevvvvveeeeennnnnue Rue Rue Rue Rue Reeeeecccccooooogggggnnnnnitititititioioioioionnnnn The Company derives revenue primarily from export of manufactured and traded goods. Effective 01 April 2018, the Company has adopted Indian Accounting Standard 115 (Ind AS 115) -’Revenue from contracts with customers’ The effect on adoption of Ind- AS 115 was insignificant. ue frue frooooom cm cm cm cm cooooonnnnntttttrrrrract wact wact wact wact wititititith cuh cuh cuh cuh cussssstttttooooomememememersrsrsrsrs ue frue fr RRRRReeeeevvvvveeeeennnnnue fr Revenue from contract with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring distinct goods or services to a customer as specified in the contract, excluding the amount collected on behalf of third parties(for example, taxes and duties collected on behalf of government) and net of returns & discounts. The company has concluded that it is acting as principal in its revenue arrangements. The Company considers whether there are other promises in the contract that are separate performance obligations to which a protion of the transaction price needs to be allocated. In determining the transaction price for the sale of products, the Company considers the effect of variable consideration, the existence of significant financing component, non-cash consideration, and consideration payable to the customer (if any). The Company assesses its revenue arrangements against specific recognition criterior like exposure to significant risks & rewards associated with the sale of goods or services. When deciding the most appropriate basis for presenting revenue or costs of revenue, both the legal form and substance of the agreement between the Company and its Customers are reviewed to determine each party’s respective role in the transaction. cific reeeeevvvvveeeeennnnnue rue rue rue rue reeeeecccccooooogggggnnnnnitititititioioioioion cn cn cn cn crrrrritititititeeeeerrrrriaiaiaiaia::::: cific r cific r SSSSSpppppeeeeecific r cific r le of prrrrroooooddddductuctuctuctuctsssss le of p le of p (((((iiiii))))) SSSSSaaaaale of p le of p Revenue from sale of products is recognised at the point in time when control of product is transferred to the customer. In case of Export sale it is on the basis of date of airway bill/bill of lading (((((iiiiiiiiii) J) J) J) J) Jooooob wb wb wb wb wooooorrrrrk ik ik ik ik incncncncncooooomememememe Revenue from job work on the product is recognised at the point in time when control of services is transferred to the customer, generally on the delivery of the product after completion of job work. ) Ex) Expppppooooorrrrrt It It It It Incncncncnceeeeennnnntttttiviviviviveseseseses ) Ex) Ex (((((iiiiiiiiiiiiiii) Ex Export Incentives under various schemes are accounted in the year of export. (((((iv) Oiv) Oiv) Oiv) Oiv) Otttttheheheheher Ir Ir Ir Ir Incncncncncooooomesmesmesmesmes a) Sale of software/ SAP income is recognized at the delivery of complete module & patches (through group companies). reimbursement from b) Rental Income is recognized on accrual basis as per the terms of agreement. c) In respect of interest income, revenue is recognised on the time proportion basis, taking into account the amount outstanding and the rate of interest applicable. d) Dividend Income is recognized when the right to receive is established. 184 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 siderrrrraaaaatttttioioioioionnnnn side le Connnnnside side le Co VVVVVaaaaarrrrriabiabiabiabiable Co le Co side le Co If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. g Commmmmpppppooooonenenenenennnnnttttt g Cog Co g Co SigSigSigSigSignnnnnificificificificificaaaaannnnnt Ft Ft Ft Ft Fiiiiinnnnnaaaaancincincincincinnnnng Co Generally, the Company does not receive short term or long term advances from its customers except in certain scenarios. Using the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of promised good or service to the customer and when the customer pays for good or service will be one year or less. The company does not expect to have any contracts where the period between the transfer of promised goods and services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money. act baaaaalllllaaaaancncncncnceseseseses act b act b CoCoCoCoConnnnntttttrrrrract b act b Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. Trade receivables A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section Financial instruments – initial recognition and subsequent measurement. Contract liabilities A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract. Cost to obtain a contract The Company does not capitalise costs to obtain a contract because majorly the contracts have terms that do not extend beyond one year. The Company does not have a significant amount of capitalized costs related to fulfilment. iiiii))))) IIIIInnnnnvvvvveeeeennnnntttttooooorrrrriesiesiesiesies i) ii) iii) Inventories of finished goods manufactured by the company are valued style-wise and at lower of cost and estimated net realizable value. Cost includes material cost on weighted average basis and appropriate share of overheads incurred in bringing them to their present location and condition. In the case of manufactured inventories and work-in- progress, cost includes an appropriate share of fixed production overheads based on normal operating capacity.. Inventories of finished goods (traded) are valued at lower of procurement cost (FIFO method) or estimated net realizable value. Inventories of raw material, work in progress, accessories & consumables are valued at cost (weighted average method) or at estimated net realizable value whichever is lower. WIP cost includes appropriate portion of allocable overheads. Raw materials and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realisable value. iv) Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on a item by item basis. Obsolete or slow moving inventories are identified from time to time and a provision is made for such inventories as appropriate on periodic basis. jjjjj))))) LLLLLeaeaeaeaeasessessessesses The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract Pearl Global Industries Limited Annual Report 2019-20 185 Notes to standalone financial statements for the year ended March 31, 2020 conveys the right to control the use of an identified asset for a period of time in exchange for consideration. s a lesseseseseseeeeee s a les CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les s a les s a les The Company’s lease asset classes primarily comprise of lease for land and building. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset. The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets as below: iiiii))))) RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the underlying assets (i.e. 30 and 60 years) If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. iiiiiiiiii))))) LLLLLeaeaeaeaease Lse Lse Lse Lse Liabiabiabiabiabilililililitititititiesiesiesiesies The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Company’s lease liabilities are included in other current and non- current financial liabilities. ses of lowwwww-----vvvvvaaaaalllllue aue aue aue aue assssssetsetsetsetsetsssss ses of lo ses of lo nd lea nd lea ses a ) Shorrrrrttttt-----ttttteeeeerrrrrm leam leam leam leam leases a ses a ) Sho (((((iiiiiiiiiiiiiii) Sho ) Sho nd leases of lo ses and lea ses of lo nd lea ses a ) Sho The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low- value assets recognition exemption to leases that are considered to be low value. Lease payments on short- term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term. “Lease liability” and “Right of Use” asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les s a les s a les s a lessososososorrrrr s a les Leases for which the Company is a lessor is classified as finance or operating lease. Leases in which the Company 186 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. nefitsssss k)k)k)k)k) EEEEEmmmmmppppplololololoyeyeyeyeyee’e’e’e’e’s bs bs bs bs beeeeenefit nefit nefit nefit nefitsssss: All employee benefits nefit nefit ShoShoShoShoShorrrrrt tt tt tt tt teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit expected to be settled wholly within twelve months of rendering the service are classified as short-term employee benefits. When an employee has rendered service to the Company during an accounting period, the Company recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense unless another Ind AS requires or permits the inclusion of the benefits in the cost of an asset. Benefits such as salaries, wages and short-term compensated absences, bonus and ex-gratia etc. are recognised in statement of profit and loss in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid after deducting any amount already paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. If the amount already paid exceeds the undiscounted amount of the benefits, the Company recognises that excess as an asset / prepaid expense to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund. DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnn A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a statutory authority and will have no legal or constructive obligation to pay further amounts. Retirement benefits in the form of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund Scheme are defined contribution plans. The contributions paid/payable to government administered respective funds are recognised as an expense in the Statement of Profit and loss during the period in which the employee renders the related service. nefit plllllaaaaannnnn nefit p DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p nefit p nefit p A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee’s salary and the tenure of employment. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable in future based on an independent actuarial valuation report using the projected unit credit method as at the year end. The obligations are measured at the present value of the estimated future cash flows. The discount rate is generally based upon the market yields available on Government bonds at the reporting date with a term that matches that of the liabilities. Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive Income in the statement of profit and loss. All other expenses related to defined benefit plans are recognised in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive Income will not be reclassified to statement of profit and loss hence it is treated as part of retained earnings in the statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as past service costs. nefitsssss OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefit As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilised during the service, or encashed. Encashment can be made during the service, on early retirement, on withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits is determined based on the seniority and the respective employee’s salary. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of Pearl Global Industries Limited Annual Report 2019-20 187 Notes to standalone financial statements for the year ended March 31, 2020 independent actuarial valuation using the projected unit credit method. - Financial Asset at fair value through profit and loss (FVTPL) lllll))))) PPPPPrrrrrovovovovovisioisioisioisioisionnnnnsssss GGGGGeeeeenenenenenerrrrraaaaalllll Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. The unwinding of discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed. mmmmm))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss A financial instrument is a contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. (((((iiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea nd mea A financial asset is initially recognised at fair value. In case of financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and loss. In other cases, the transaction cost are attributed to the acquisition value of the financial asset. SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t mea t mea t measssssuuuuurrrrreeeeemememememennnnnttttt t mea For purposes of subsequent measurement, financial assets are classified in three categories: - - Financial Asset carried at amortised cost Financial Asset at fair value through other comprehensive income (FVTOCI) set caaaaarrrrrrrrrrieieieieied ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt set c FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset c set c set c A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. h oth eh eh eh eh errrrr h ot h ot ue tue thhhhhrrrrro uo uo uo uo uggggg h ot ue tue t set at ft ft ft ft faaaaa iiiiir vr vr vr vr vaaaaa lllllue t set a set a FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset a h ot set a cccccooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome (Fme (Fme (Fme (Fme (FVVVVVTTTTTOOOOOCCCCCI)I)I)I)I) A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. nd lossssss nd los nd los ofit a ofit a set at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a set a set a FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset a ofit and los nd los ofit a set a (F(F(F(F(FVVVVVTTTTTPPPPPL)L)L)L)L) A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the Company’s Balance Sheet) when: (i) The contractual rights to receive cash flows from the asset has expired, or (ii) The Company has transferred its contractual rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. (((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea nd mea Financial liabilities are classified, at initial recognition, 188 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 as financial liabilities at fair value through profit or loss. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include borrowings, trade and other payables, security deposits received etc. t measssssuuuuurrrrreeeeemememememennnnnttttt t mea t mea SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t mea For purposes of subsequent measurement, financial liabilities are classified in two categories: - - Financial liabilities at amortised cost Financial liabilities at fair value through profit and loss (FVTPL) A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such as initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the Statement of Profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense is recognised in the Statement of Profit and loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de- recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. g of finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss g of fi (((((iiiiiiiiiiiiiii))))) OffOffOffOffOffsetsetsetsetsettttttiiiiinnnnng of fi g of fi g of fi 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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously (((((iv)iv)iv)iv)iv) DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss Till March 31, 2019, the Company used derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instruments were initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss. (v)(v)(v)(v)(v) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg With effect from April 2019, the Company adopted Hedge Accounting. The derivatives that are designated as hedging instrument under Ind AS 109 to mitigate risk arising out of foreign currency transactions are accounted for as cash flow hedges. The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company. The hedge instruments are designated and documented as hedges at the inception of the contract. The effectiveness of hedge instruments is assessed and measured at inception and on an ongoing basis. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in OCI, e.g., cash flow hedging reserve and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the statement of profit and loss. The amount accumulated is retained in cash flow hedge reserve and reclassified to profit or loss in the same period or periods during which the hedged item affects the statement of profit and loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument is terminated or exercised prior to its maturity/ contractual term, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss Pearl Global Industries Limited Annual Report 2019-20 189 Notes to standalone financial statements for the year ended March 31, 2020 previously recognized in the cash flow hedging reserve is reclassified to the Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified immediately in the statement of profit and loss. nnnnn))))) t of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of fi IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of fi t of fi t of fi The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increases in credit risk. Expected credit loss is the weighted average of the difference between all contractual cash flows that are due to the Company in accordance with the contracts and all the cash flows that the Company expects to receive, discounted at original effective interest rate with the respective risk of defaults occuring as the weights. ooooo))))) t of nonnnnn-fi-fi-fi-fi-finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of no IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of no t of no t of no The carrying amounts of the Company’s non-financial assets, other than deferred tax assets, are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.The recoverable amount of an asset or cash-generating unit (‘CGU’) is the greater of its value in use or its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing , assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (‘CGU’). An impairment loss is recognized, if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount and is recognised in statement of profit and loss. Impairment losses recognised in prior periods are assessed at end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. ue measssssuuuuurrrrreeeeemememememennnnnttttt ue mea ppppp))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea ue mea Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (a) In the principal market for the asset or liability, or (b) In the absence of a principal market, in the most advantageous market for the asset or liability A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. 190 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 qqqqq))))) TTTTTaaaaaxxxxxeseseseses CCCCCuuuuurrrrrrrrrreeeeennnnnt it it it it incncncncncooooome tme tme tme tme taaaaaxxxxx Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income (OCI) or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Current tax assets are offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously. DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Tax relating to items recognized directly in equity/other comprehensive income is recognized in respective head and not in the statement of profit & loss. The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). MMMMMiiiiinnnnniiiiimmmmmuuuuum Am Am Am Am Alllllttttteeeeerrrrrnnnnnaaaaattttte Te Te Te Te Taaaaaxxxxx Minimum Alternate Tax (MAT) paid in the year is charged to the Statement of Profit and Loss as current tax.The Company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which Company recognises MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as “MAT Credit Entitlement”. The Company reviews the “MAT Credit Entitlement” asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period. In accordance with Ind AS 12 Company is grouping MAT credit entitlement with Deferred Tax Assets/Liabilities (Net). r)r)r)r)r) ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid ubsid ubsid Investment in subsidiaries There is an option to measure investments in subsidiaries at cost in accordance with Ind AS 27 at either: (a) Fair value on date of transition; or (b) Previous GAAP carrying values The Company had decided to use the previous GAAP carrying values to value its investments in its subsidiaries as on the date of transition, April 01, 2016. s)s)s)s)s) CCCCCaaaaash a sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss sh esh e sh e sh ash and cnd cnd cnd cnd caaaaash e sh ash a Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash balance on hand, cash Pearl Global Industries Limited Annual Report 2019-20 191 Notes to standalone financial statements for the year ended March 31, 2020 balance at banks and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management. as deferred income and are credited to Profit and Loss on a straight - line basis over the expected lives of related assets and presented within other income. t)t)t)t)t) EEEEEaaaaarrrrrnnnnniiiiinnnnngggggs ps ps ps ps peeeeer shr shr shr shr shaaaaarrrrre (Ee (Ee (Ee (Ee (EPPPPPS)S)S)S)S) ies and cnd cnd cnd cnd cooooonnnnntttttiiiiinnnnngggggeeeeennnnnt at at at at assssssetsetsetsetsetsssss ies a v)v)v)v)v) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities a ies a ies a In determining earnings per share, the Company considers the net profit after tax and includes the post tax effect of any extraordinary items. Basic EPS amounts are calculated by dividing the profit for the year attributable to the shareholders of the Company by the weighted average number of equity shares outstanding as at the end of reporting period. Diluted EPS amounts are calculated by dividing the profit attributable to the shareholders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. A transaction is considered to be antidilutive if its effect is to increase the amount of EPS, either by lowering the share count or increase the earnings. uuuuu))))) GGGGGovovovovoveeeeerrrrrnnnnnmememememennnnnt gt gt gt gt grrrrraaaaannnnntttttsssss Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will be received and the Company will comply with all attached conditions. Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. ch & devvvvveloeloeloeloelopppppmememememennnnnt ct ct ct ct cososososostttttsssss ch & de esearrrrrch & de ch & de esea w)w)w)w)w) RRRRResea esea ch & de esea Research and development costs that are in nature of tangible assets and are expected to generate probable future economic benefits are capitalised as tangible assets. Revenue expenditure on research and development is charged to the statement of profit and loss in the year in which it is incurred. x)x)x)x)x) ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss When items of income and expense within statement of profit and loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the period, the nature and amount of such material items are disclosed seperately as exceptional items. 192 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 E 4 : PROOOOOPPPPPEEEEERRRRRTTTTTYYYYY, P, P, P, P, PLLLLLAAAAANNNNNTTTTT E 4 : PR NONONONONOTTTTTE 4 : PR E 4 : PR E 4 : PR AAAAANNNNND EQD EQD EQD EQD EQUUUUUIIIIIPMPMPMPMPMEEEEENNNNNTTTTT LaLaLaLaLandndndndnd----- frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss seholdldldldld seho seho lealealealealeaseho seho LLLLLeaeaeaeaeaseho seholdldldldld seho seho seho iiiiimmmmmppppprrrrrovovovovoveeeeemememememennnnntttttsssss PPPPPlllllaaaaannnnnt at at at at andndndndnd E qE qE qE qE quuuuuiiiiipppppm em em em em ennnnnttttt FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee VVVVVehehehehehicles icles icles icles icles nd Fnd Fixixixixixuuuuurrrrreseseseses nd Fnd F aaaaand F TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed cd cd cd cd cososososost)t)t)t)t) As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 Add: Additions made during the year Less: Disposals/adjustments during the year ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Additions made during the year Less: Disposals/adjustments during the year ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d deppppprrrrreeeeeciaciaciaciaciatttttioioioioion/an/an/an/an/am om om om om orrrrrtttttizaizaizaizaizatttttioioioioionnnnn d de d de AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed de d de il 01, 2018 il 01, 2018 As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 Add: Depreciation/amortization for the year Less: Disposals/adjustments during the year ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Depreciation charge for the year Less: Disposals/adjustments during the year ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 et caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt et c et c NNNNNet c et c ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 1,647.34 41.43 76.47 1,612.30 1,612.30 1,612.30 1,612.30 1,612.30 221.95 4.53 1,829.72 1,829.72 1,829.72 1,829.72 1,829.72 ----- - - ----- - - ----- 47.74 - - 47.74 47.74 47.74 47.74 47.74 - - 47.74 47.74 47.74 47.74 47.74 0.680.68 0.680.68 0.68 0.34 - 1.021.02 1.021.02 1.02 0.34 - 1.361.36 1.361.36 1.36 3,872.82 37.62 - 3,910.44 3,910.44 3,910.44 3,910.44 3,910.44 19.61 - 3,930.05 3,930.05 3,930.05 3,930.05 3,930.05 252.24 252.24 252.24 252.24 252.24 151.64 - 403.88 403.88 403.88 403.88 403.88 155.11 - 558.99 558.99 558.99 558.99 558.99 440.58 7.99 - 448.57 448.57 448.57 448.57 448.57 109.41 - 557.98 557.98 557.98 557.98 557.98 53.26 53.26 53.26 53.26 53.26 62.02 - 115.28 115.28 115.28 115.28 115.28 75.07 - 190.35 190.35 190.35 190.35 190.35 7,015.29 1,550.57 108.56 8,457.30 8,457.30 8,457.30 8,457.30 8,457.30 587.01 82.67 8,961.64 8,961.64 8,961.64 8,961.64 8,961.64 1,305.73 1,305.73 1,305.73 1,305.73 1,305.73 731.46 31.00 2,006.19 2,006.19 2,006.19 2,006.19 2,006.19 816.93 54.45 2,768.67 2,768.67 2,768.67 2,768.67 2,768.67 836.57 14,563.46 703.12 168.52 1,908.09 101.96 20.04 208.02 2.95 16,263.53 16,263.53 985.05 985.05 802.13 802.13 16,263.53 985.05 16,263.53 802.13 16,263.53 985.05 985.05 802.13 802.13 1,424.90 262.39 224.53 159.38 246.58 - 17,441.85 17,441.85 1,088.06 1,088.06 1,026.66 1,026.66 17,441.85 1,088.06 17,441.85 1,026.66 1,088.06 17,441.85 1,088.06 1,026.66 1,026.66 180.04 180.04 180.04 180.04 180.04 89.58 0.77 268.85 268.85 268.85 268.85 268.85 100.10 - 368.95 368.95 368.95 368.95 368.95 211.58 211.58 211.58 211.58 211.58 120.73 10.90 321.41 321.41 321.41 321.41 321.41 129.96 71.21 380.16 380.16 380.16 380.16 380.16 2,003.53 2,003.53 2,003.53 2,003.53 2,003.53 1,155.77 42.67 3,116.63 3,116.63 3,116.63 3,116.63 3,116.63 1,277.51 125.66 4,268.48 4,268.48 4,268.48 4,268.48 4,268.48 1,829.72 1,612.30 46.38 46.71 3,371.06 3,506.57 367.63 333.29 6,192.97 6,451.10 657.71 533.28 13,173.38 13,173.38 13,173.38 707.90 13,173.38 13,173.38 13,146.90 13,146.90 13,146.90 663.64 13,146.90 13,146.90 a) The above assets includes Gross block of land of ` 78.55 lakh (March 31, 2019: ` 83.08 lakh) situated at Narshingpur, Tehsil District Gurgaon(Haryana). Out of this Gross block of land of ` 42.50 lakh (March 31, 2019: ` 47.03 lakh) represents the amount for which the company has executed a construction project agreement with DLF Retail Developers Limited on November 30, 2007. However, as certified by the Management, the work has not started during the financial year 2019-20 due to pending receipt of license from the concerned authority. b) For Information on Property, plant and equipment pledged as security by the company refer Note 21 c) The above property, plant and equipment includes assets given on lease given in the below table: As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 Gross carrying amount Accumulated depreciation NNNNNet c et c et c et caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt et c As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Gross carrying amount Accumulated depreciation et caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt et c NNNNNet c et c et c LaLaLaLaLandndndndnd----- frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss seholdldldldld seho seho lealealealealeaseho seho LLLLLeaeaeaeaeaseho seholdldldldld seho seho seho iiiiimmmmmppppprrrrrovovovovoveeeeemememememennnnntttttsssss PPPPPlllllaaaaannnnnt at at at at andndndndnd E qE qE qE qE quuuuuiiiiipppppm em em em em ennnnnttttt FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee VVVVVehehehehehicles icles icles icles icles nd Fnd Fixixixixixuuuuurrrrreseseseses nd Fnd F aaaaand F - - ----- - - ----- - - ----- - - ----- - - ----- - - ----- - - ----- - - ----- 27.77 16.59 11.18 11.18 11.18 11.18 11.18 27.77 13.59 14.18 14.18 14.18 14.18 14.18 21.22 12.21 9.019.01 9.019.01 9.01 21.22 9.16 12.06 12.06 12.06 12.06 12.06 - - ----- - - ----- TTTTTotototototaaaaalllll 48.99 28.80 20.19 20.19 20.19 20.19 20.19 48.99 22.75 26.24 26.24 26.24 26.24 26.24 Pearl Global Industries Limited Annual Report 2019-20 193 Notes to standalone financial statements for the year ended March 31, 2020 E 5 : CAPPPPPIIIIITTTTTAAAAAL WL WL WL WL WOOOOORRRRRK IK IK IK IK IN PN PN PN PN PRRRRROOOOOGGGGGRRRRREEEEESSSSSSSSSS E 5 : CA NONONONONOTTTTTE 5 : CA E 5 : CA E 5 : CA Capital work in progress a) Breakup of capital work in progress is as follows: Building Plant and machinery Furniture and fittings Other expenses E 6 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNT PT PT PT PT PRRRRROOOOOPPPPPEEEEERRRRRTTTTTIIIIIEEEEESSSSS E 6 : IN E 6 : IN NONONONONOTTTTTE 6 : IN E 6 : IN GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed cd cd cd cd cososososost)t)t)t)t) il 01, 2018 il 01, 2018 As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 Add: Additions made during the year Less: Disposals/adjustments during the year ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Additions made during the year Less: Disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed ded ded ded ded deppppprrrrreeeeeciaciaciaciaciatttttioioioioion an an an an and and and and and amomomomomorrrrrtttttisaisaisaisaisatttttioioioioionnnnn As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 Add: Depreciation & amortisation charge for the year Less: Disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Depreciation & amortisation charge for the year Less: Disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 232.50 --------------------------------------------------------- 232.50 232.50 232.50 232.50 232.50 ======================== As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 159.72 --------------------------------------------------------- 159.72 159.72 159.72 159.72 159.72 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 176.05 - - 56.45 ---------------------------------------------------------- 232.50 232.50 232.50 232.50 232.50 ---------------------------------------------------------- 109.02 8.60 28.05 14.05 ---------------------------------------------------------- 159.72 159.72 159.72 159.72 159.72 ---------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) LaLaLaLaLandndndndnd frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd seholdldldldld seho seho lealealealealeaseho seho BBBBBuuuuuildildildildildiiiiinnnnnggggg TTTTTotototototaaaaalllll 3,085.51 1.29 - ---------------------------------------------------------- 3,086.80 3,086.80 3,086.80 3,086.80 3,086.80 49.12 - ---------------------------------------------------------- 3,135.92 3,135.92 3,135.92 3,135.92 3,135.92 ---------------------------------------------------------- - - - ---------------------------------------------------------- ----- ----- - ---------------------------------------------------------- ----- ---------------------------------------------------------- 10.36 - - ---------------------------------------------------------- 10.36 10.36 10.36 10.36 10.36 - - ---------------------------------------------------------- 10.36 10.36 10.36 10.36 10.36 ---------------------------------------------------------- - - - ---------------------------------------------------------- ----- - - ---------------------------------------------------------- ----- ---------------------------------------------------------- 4,580.71 - - ---------------------------------------------------------- 4,580.71 4,580.71 4,580.71 4,580.71 4,580.71 - - ---------------------------------------------------------- 4,580.71 4,580.71 4,580.71 4,580.71 4,580.71 ---------------------------------------------------------- 162.22 85.76 - ---------------------------------------------------------- 247.98 247.98 247.98 247.98 247.98 85.75 - ---------------------------------------------------------- 333.73 333.73 333.73 333.73 333.73 ---------------------------------------------------------- 7,676.58 7,676.58 7,676.58 7,676.58 7,676.58 1.291.291.291.291.29 ----- ---------------------------------------------------------- 7,677.87 7,677.87 7,677.87 7,677.87 7,677.87 49.12 49.12 49.12 49.12 49.12 ----- ---------------------------------------------------------- 7,726.99 7,726.99 7,726.99 7,726.99 7,726.99 ---------------------------------------------------------- 162.22 162.22 162.22 162.22 162.22 85.76 85.76 85.76 85.76 85.76 ----- ---------------------------------------------------------- 247.98 247.98 247.98 247.98 247.98 85.75 85.75 85.75 85.75 85.75 ----- ---------------------------------------------------------- 333.73 333.73 333.73 333.73 333.73 ---------------------------------------------------------- 3,135.92 3,086.80 10.36 10.36 4,246.99 4,332.74 7,393.26 7,393.26 7,393.26 7,393.26 7,393.26 7,429.89 7,429.89 7,429.89 7,429.89 7,429.89 194 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (a) AAAAAmoumoumoumoumounnnnnttttts rs rs rs rs reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in Sn Sn Sn Sn Stttttaaaaattttteeeeemememememennnnnt of t of t of t of t of ofit and Lnd Lnd Lnd Lnd Losososososs fos fos fos fos for ir ir ir ir innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies ofit a PPPPPrrrrrofit a ofit a ofit a Rental Income Direct operating expenses of property that generated rental income Direct operating expenses of property that did not generated rental income ies befoefoefoefoeforrrrre che che che che chaaaaargrgrgrgrgiiiiinnnnng deg deg deg deg deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn ies b ies b IIIIIncncncncncooooome ame ame ame ame arrrrrisiisiisiisiisinnnnng frg frg frg frg frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties b ies b Depreciation & amortisation ies (net) ies (net) IIIIIncncncncncooooome frme frme frme frme frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties (net) ies (net) ies (net) ue of innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies ue of i ue of i (b) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of i ue of i n of faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue n of f n of f EEEEEssssstttttiiiiimmmmmaaaaatttttioioioioion of f n of f (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 980.53 65.88 14.23 900.42 900.42 900.42 900.42 900.42 85.75 --------------------------------------------------------- 814.67 814.67 814.67 814.67 814.67 --------------------------------------------------------- 10,793.94 10,793.94 10,793.94 10,793.94 10,793.94 --------------------------------------------------------- 814.53 53.62 77.46 683.45 683.45 683.45 683.45 683.45 85.76 --------------------------------------------------------- 597.69 597.69 597.69 597.69 597.69 --------------------------------------------------------- 11,378.15 11,378.15 11,378.15 11,378.15 11,378.15 --------------------------------------------------------- The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex,age of building and trend of fair market rent.This valuation is based on valuations performed by an accredited independent valuer. Fair valuation is based on replacement cost method. The fair value measurement is categorised in level 2 fair value hierarchy. (c) In the earlier years, the Company had initiated the process of converting its leasehold land (situated at Plot A-3, Naraina, New Delhi) into freehold land. However, the deed is yet to be transferred in the name of the Company as at March 31, 2020. (Amount in ` Lakh, unless otherwise stated) E 7 : OTHHHHHEEEEER IR IR IR IR INNNNNTTTTTAAAAANNNNNGGGGGIIIIIBBBBBLLLLLE AE AE AE AE ASSSSSSSSSSEEEEETSTSTSTSTS E 7 : OT E 7 : OT NONONONONOTTTTTE 7 : OT E 7 : OT AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed cd cd cd cd cosososososttttt GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt il 01, 2018 il 01, 2018 As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 Add: Additions during the year Less: Disposals / adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Additions during the year Less: Disposals / adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed ad ad ad ad amomomomomorrrrrtttttisaisaisaisaisatttttioioioioionnnnn As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 il 01, 2018 Add: Amortisation charge for the year Less: On disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Add: Amortisation charge for the year Less: On disposals / adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 CoCoCoCoCommmmmpupupupuputtttteeeeerrrrr SSSSSofofofofoftttttwwwwwaaaaarrrrreeeee 219.89 27.65 - --------------------------------------------------------- 247.54 247.54 247.54 247.54 247.54 17.57 - --------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 --------------------------------------------------------- 85.06 47.54 - --------------------------------------------------------- 132.60 132.60 132.60 132.60 132.60 47.75 - --------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 --------------------------------------------------------- 84.76 84.76 84.76 84.76 84.76 114.94 114.94 114.94 114.94 114.94 TTTTTotototototaaaaalllll 219.89 27.65 - --------------------------------------------------------- 247.54 247.54 247.54 247.54 247.54 17.57 - --------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 --------------------------------------------------------- 85.06 47.54 - --------------------------------------------------------- 132.60 132.60 132.60 132.60 132.60 47.75 --------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 --------------------------------------------------------- 84.76 84.76 84.76 84.76 84.76 114.94 114.94 114.94 114.94 114.94 Pearl Global Industries Limited Annual Report 2019-20 195 Notes to standalone financial statements for the year ended March 31, 2020 E 8 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNT IT IT IT IT IN SN SN SN SN SUUUUUBBBBBSSSSSIIIIIDDDDDIIIIIAAAAARRRRRIIIIIEEEEESSSSS E 8 : IN NONONONONOTTTTTE 8 : IN E 8 : IN E 8 : IN NNNNNooooonnnnn- C- C- C- C- Cuuuuurrrrrrrrrreeeeennnnnttttt ies - (uuuuunqnqnqnqnquotuotuotuotuoteeeeeddddd))))) ies - ( ubsidiaiaiaiaiarrrrries - ( ies - ( ubsid ubsid es of S IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in en en en en eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrres of S es of S es of Subsid ies - ( ubsid es of S (((((AAAAAt Cos t Cost)t)t)t)t) t Cos t Cos t Cos Pearl Global Far East Limited, Hong Kong 535,000 (March 31, 2019: 5,35,000) Equity Shares of USD 1 Each fully paid up Pearl Apparel Fashions Limited, India 27,639,145 (March 31, 2019 27,639,145) Equity Shares of ` 10 each fully paid up Less: Provision for diminution in value of Investments Pearl Global (HK) Limited, Hong Kong 1,610,000 (March 31, 2019: 16,10,000) Equity Shares of USD 1 each fully paid up Pearl Global Kausal Vikas Limited 50,000 (March 31, 2019: 50,000) Equity Shares of ` 10 each fully paid up Norp Knit Industries Limited, Bangladesh 3,381,211 (March 31, 2019: 3,381,211) Equity Shares of Taka 100 Each fully paid up SBUYS E-Commerce Limited 10,000 (March 31, 2019: Nil) Equity Shares of ` 10 Each fully paid up y - (y - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd))))) y - (y - ( ubsidiaiaiaiaiarrrrry - ( ubsid ubsid e of S e of S IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in Pn Pn Pn Pn Prrrrrefeefeefeefeeferrrrreeeeencncncncnce She She She She Shaaaaarrrrre of S e of Subsid ubsid e of S d Cost)t)t)t)t) d Cos d Cos (((((AAAAAt At At At At Amomomomomorrrrrtttttiseiseiseiseised Cos d Cos Pearl Apparel Fashions Limited, India 3,000,000 (March 31, 2019: 3,000,000) Preference Shares of ` 10 each fully paid up a) Aggregate value of unquoted investments b) Aggregate amount of impairment in value of unquoted investments c) Aggregate value of unquoted investments (net of impairment) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 2,797.29 2,797.29 1,648.35 1,648.35 (1,644.44) --------------------------------------------------------- 3.91 (1,617.20) --------------------------------------------------------- 31.15 6,152.32 5.00 2,468.53 1.00 300.00 --------------------------------------------------------- 11,728.05 11,728.05 11,728.05 11,728.05 11,728.05 ======================== 13,372.49 1,644.44 11,728.05 6,173.19 5.00 2,419.51 - 300.00 --------------------------------------------------------- 11,726.14 11,726.14 11,726.14 11,726.14 11,726.14 ======================== 13,343.34 1,617.20 11,726.14 196 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 (b) Information about subsidiaries me of Commmmmpppppaaaaannnnnyyyyy me of Co NNNNNaaaaame of Co me of Co me of Co CouCouCouCouCounnnnntttttrrrrry ofy ofy ofy ofy of iiiiincncncncncooooorprprprprpooooorrrrraaaaatttttioioioioionnnnn l activivivivivitititititiesiesiesiesies l act PPPPPrrrrriiiiincincincincincipppppaaaaal act l act l act (Amount in ` Lakh, unless otherwise stated) n (%) of eqqqqquuuuuititititity iy iy iy iy innnnnttttteeeeerrrrresesesesesttttt n (%) of e PPPPPooooorprprprprpooooorrrrrtttttioioioioion (%) of e n (%) of e n (%) of e As AAs AAs AAs AAs Attttt As AAs AAs AAs AAs Attttt ch 31, 2020 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 ch 31, 2020 SSSSSubsid ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid ubsid ubsid Pearl Apparel Fashions Limited Pearl Global Kaushal Vikas Limited (Formally known as Pixel Industries Limited) Pearl Global Far East Limited Pearl Global (HK) Limited Hong Kong Hong Kong Norp Knit Industries Limited Bangladesh SBUYS E-Commerce Limiited India India India Trading of garments Skill Development Trading of garments Manufacturing and trading of garments Manufacturing and trading of garments Online Trading of garments 100.00 100.00 100.00 100.00 99.99 100.00 100.00 100.00 100.00 100.00 99.99 - c) Investment in equity shares of subsidiary includes Income from Corporate Guarantee for the following Companies:- he Commmmmpppppaaaaannnnnyyyyy he Co he Co me of t me of t NNNNNaaaaame of t me of the Co he Co me of t Pearl Global (HK) Limited, Hong Kong Norp Knit Industries Limited, Bangladesh TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 220.12 266.89 --------------------------------------------------------- 487.01 487.01 487.01 487.01 487.01 ======================== 240.98 217.87 --------------------------------------------------------- 458.85 458.85 458.85 458.85 458.85 ======================== d) As at March 31, 2019, the net worth of the Pearl Apparel Fashions Limited, a subsidiary Company is substantially eroded. Management decision to cease its existing business and erosion of its net worth indicates a possible impairment in the carrying value of investment, Accordingly, the management with the help of a valuation specialist, has carried out an impairment assessment and estimated a provision of ` 1,617.20 lakh as a diminution in the carrying value of its investment. The management has estimated the recoverable amount of its investment in the subsidiary by adjusted net asset method using the pre-tax discount rate. Further, during the year ended March 31, 2020, the Management of the aforesaid subsidiary Company, by resolution dated March 20, 2020 has decided to apply for voluntary liquidation. In effect of above resolution, the Company further impaired its investments in such subsidiary by ` 27.24 lakh and recognised the same at its recoverable amount. Hence the total impairment as at March 31, 2020 in the value of investment in the said subsidiary is ` 1,644.44 lakh. Pearl Global Industries Limited Annual Report 2019-20 197 Notes to standalone financial statements for the year ended March 31, 2020 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 TS OTHHHHHEEEEERRRRRSSSSS TS OT E 9 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTS OT TS OT E 9 : IN NONONONONOTTTTTE 9 : IN E 9 : IN TS OT E 9 : IN NNNNNooooonnnnn- C- C- C- C- Cuuuuurrrrrrrrrreeeeennnnnttttt AAAAA..... EqEqEqEqEquuuuuititititity Iy Iy Iy Iy Innnnnssssstttttrrrrruuuuumememememennnnnttttts- Qs- Qs- Qs- Qs- Quotuotuotuotuoteeeeeddddd (((((AAAAAt Ft Ft Ft Ft Faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a nd loss)s)s)s)s) nd los nd los ofit a ofit a ofit and los nd los ofit a PDS Multinational fashions Limited, India 50,000 (March 31, 2019: 50,000) Equity Shares of ` 10 each fully paid up B.B.B.B.B. ies -UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd ies - ies - IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in Gn Gn Gn Gn Govovovovoveeeeerrrrrnnnnnmememememennnnnt set set set set secucucucucurrrrrititititities - ies - (((((AAAAAt At At At At Amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cososososost)t)t)t)t) Investments in Government securities - Gold Sovereign Bond- 37 units of 2 gram each issued by Reserve Bank of India A + B) A + B) TTTTTotototototaaaaal (l (l (l (l (A + B) A + B) A + B) CCCCCuuuuurrrrrrrrrreeeeennnnnttttt C.C.C.C.C. nds - (Quotuotuotuotuoteeeeeddddd))))) nds - (Q nds - (Q IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in mn mn mn mn muuuuutttttuuuuuaaaaal fl fl fl fl fuuuuunds - (Q nds - (Q nd lossssss nd los nd los ofit a ofit a IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts cs cs cs cs caaaaarrrrrrrrrrieieieieied ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a ofit and los nd los ofit a ICICI Prudential Short Term Fund DP Growth 536,068.057 units of Face Value of ` 10 per unit (March 31, 2019: Nil units) L&T Banking and PSU debt fund direct plan - growth 1,223,214.3850 units of Face Value of ` 10 per unit (March 31, 2019: Nil units) IDFC Banking and PSU debt fund direct plan - growth 1,267,806.9250 units of Face Value of ` 10 per unit (March 31, 2019: Nil units) a) Aggregate book value of quoted investments Aggregate market value of quoted investments Aggregate value of unquoted investments Aggregate amount of impairment in value of unquoted investments Aggregate value of unquoted investments (net of impairment) 141.00 --------------------------------------------------------- 141.00 141.00 141.00 141.00 141.00 --------------------------------------------------------- 133.50 --------------------------------------------------------- 133.50 133.50 133.50 133.50 133.50 --------------------------------------------------------- 1.63 1.63 --------------------------------------------------------- 1.631.631.631.631.63 --------------------------------------------------------- 142.63 142.63 142.63 142.63 142.63 ======================== --------------------------------------------------------- 1.631.631.631.631.63 --------------------------------------------------------- 135.13 135.13 135.13 135.13 135.13 ======================== 237.83 227.10 227.75 --------------------------------------------------------- 692.68 692.68 692.68 692.68 692.68 ======================== 833.68 833.68 1.63 - 1.63 - - --------------------------------------------------------- ----- ======================== 133.50 133.50 1.63 - 1.63 E10 : LOAAAAANSNSNSNSNS E10 : LO NONONONONOTTTTTE10 : LO E10 : LO E10 : LO (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 (Unsecured, considered good unless otherwise stated) Loans to employees Loans to related parties (Refer Note No. 47) 49.63 300.00 ---------------------------------------------------------- 349.63 349.63 349.63 349.63 349.63 ======================== a) The Company has no loans which have significant increase in credit risk and loans which are credit impaired. (Refer Note 18.10 456.52 ---------------------------------------------------------- 474.62 474.62 474.62 474.62 474.62 ======================== 7.63 497.57 ---------------------------------------------------------- 505.20 505.20 505.20 505.20 505.20 ======================== 25.78 300.00 ---------------------------------------------------------- 325.78 325.78 325.78 325.78 325.78 ======================== No. 44) 198 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 E 11 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL AL AL AL AL ASSSSSSSSSSEEEEETSTSTSTSTS E 11 : OT NONONONONOTTTTTE 11 : OT E 11 : OT E 11 : OT Term deposits and others Loan to related parties (Unsecured, considered good unless otherwise stated) Security deposits (Refer ‘a’ below) Interest accrued but not due on - - Deposits with original maturity of more than 12 months (Refer note 18) Mark to market forward contracts Other receivable (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 750.21 744.64 0.16 140.75 45.54 - 99.42 - 50.57 29.89 6.71 - 55.86 45.66 6.66 761.26 ---------------------------------------------------------- 936.66 936.66 936.66 936.66 936.66 ======================== ---------------------------------------------------------- 844.06 844.06 844.06 844.06 844.06 ======================== - - ---------------------------------------------------------- 87.17 87.17 87.17 87.17 87.17 ======================== 462.80 234.35 ---------------------------------------------------------- 1,566.59 1,566.59 1,566.59 1,566.59 1,566.59 ======================== a) Security deposits are not in the nature of loans hence classified as part of other financial assets. E 12 : INCCCCCOOOOOMMMMME TAE TAE TAE TAE TAXXXXX E 12 : IN E 12 : IN NONONONONOTTTTTE 12 : IN E 12 : IN The major components of income tax expense for the years ended March 31, 2020 and March 31, 2019 are: nd lossssss::::: nd los nd los ofit a ofit a t of prrrrrofit a t of p t of p SSSSStttttaaaaattttteeeeemememememennnnnt of p ofit and los nd los ofit a t of p r loss ses ses ses ses sectctctctctioioioioionnnnn r los r los ofit o ofit o PPPPPrrrrrofit o ofit or los r los ofit o x Exx Expppppeeeeennnnnsesesesese::::: x Exx Ex TTTTTaaaaax Ex a) Current tax b) Adjustments in respect of relating to earlier years c) Deferred tax r lossssss r los r los ofit o t of prrrrrofit o ofit o t of p se rse reeeeepppppooooorrrrrttttteeeeed id id id id in tn tn tn tn the she she she she stttttaaaaattttteeeeemememememennnnnt of p t of p se rse r IIIIIncncncncncooooome tme tme tme tme taaaaax exx exx exx exx expppppeeeeennnnnse r ofit or los r los ofit o t of p OOOOOCCCCCI seI seI seI seI sectctctctctioioioioionnnnn he yearrrrr::::: he yea DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI dI dI dI dI duuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea Net loss/(gain) on remeasurements of defined benefit plans Income tax on items that will be reclassified subsequently to statement of profit and loss IIIIIncncncncncooooome tme tme tme tme taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo OCCCCCIIIII (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 421.00 26.79 141.83 --------------------------------------------------------- 589.62 589.62 589.62 589.62 589.62 ======================== 825.78 193.01 16.66 --------------------------------------------------------- 1,035.45 1,035.45 1,035.45 1,035.45 1,035.45 ======================== As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 (47.23) 346.57 --------------------------------------------------------- 299.34 299.34 299.34 299.34 299.34 ======================== (70.83) - --------------------------------------------------------- (70.83) (70.83) (70.83) (70.83) (70.83) ======================== Pearl Global Industries Limited Annual Report 2019-20 199 Notes to standalone financial statements for the year ended March 31, 2020 OOOOOtttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititity Sy Sy Sy Sy Seeeeectctctctctioioioioionnnnn DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in Rn Rn Rn Rn Retetetetetaaaaaiiiiinenenenened Ed Ed Ed Ed Eaaaaarrrrrnnnnniiiiinnnnngggggsssss::::: Implementation of Ind AS 116: Leases NNNNNet aet aet aet aet amoumoumoumoumounnnnnt cht cht cht cht chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo Otttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititityyyyy (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 102.38 --------------------------------------------------------- 102.38 102.38 102.38 102.38 102.38 ======================== - --------------------------------------------------------- ----- ======================== ch 31, 2020 ch 31, 2020 ic taaaaax rx rx rx rx raaaaattttte foe foe foe foe for Mr Mr Mr Mr Maaaaarrrrrch 31, 2020 ic t ic t he accccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit mofit mofit mofit mofit muuuuullllltttttiiiiippppplllllieieieieied bd bd bd bd by Iy Iy Iy Iy Indndndndndiaiaiaiaia’’’’’s dos dos dos dos domesmesmesmesmestttttic t he ac he ac n of taaaaax exx exx exx exx expppppeeeeennnnnse ase ase ase ase and tnd tnd tnd tnd the ac n of t n of t a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of t ch 31, 2020 ch 31, 2020 ic t he ac n of t ch 31, 2019. ch 31, 2019. aaaaand Mnd Mnd Mnd Mnd Maaaaarrrrrch 31, 2019. ch 31, 2019. ch 31, 2019. Accounting profit before tax from continuing operations ofit befoefoefoefoeforrrrre ie ie ie ie incncncncncooooome tme tme tme tme taaaaaxxxxx ofit b ofit b AAAAAccccccccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit b ofit b At India’s statutory income tax rate of 34.944% (March 31, 2019: 34.944%) Adjustments in respect of current income tax of previous years ich arrrrreeeee ich a ich a ct of the ahe ahe ahe ahe amoumoumoumoumounnnnnttttts ws ws ws ws whhhhhich a ct of t ct of t x effe x effe TTTTTaaaaax effe x effect of t ich a ct of t x effe le) for tr tr tr tr taaaaax pux pux pux pux purprprprprposesosesosesosesoses::::: le) fo le) fo le/(tttttaaaaaxabxabxabxabxable) fo le/( le/( NNNNNooooonnnnn-----dedededededdddductuctuctuctuctibibibibible/( le) fo le/( Expenses not deducted for tax purposes Income exempted from income tax Impact of tax at different tax rate and Others At the income tax rate of 34.944% (March 31, 2019: 34.944 %) Income tax expense reported in the statement of profit and loss bbbbb))))) DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx::::: DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo he fohe follllllololololowwwwwiiiiinnnnnggggg ::::: he fohe fo Provision for employee benefits Expenses allowed in the year of payment Unaborsbed Losses Lease Liabilities Mark to Mark Forward Contracts - Cash Flow Hedge Others (A) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 1,090.51 --------------------------------------------------------- As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 3,185.65 --------------------------------------------------------- 381.07 26.79 1,113.19 193.01 223.61 (137.34) 95.50 --------------------------------------------------------- 589.63 589.62 --------------------------------------------------------- 576.44 (676.97) (170.21) --------------------------------------------------------- 1,035.46 1,035.45 --------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) e sheetetetetet e she BBBBBaaaaalllllaaaaancncncncnce she e she e she As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 442.25 197.89 17.07 1,065.71 346.57 167.20 --------------------------------------------------------- 2,236.69 2,236.69 2,236.69 2,236.69 2,236.69 --------------------------------------------------------- 386.77 134.25 543.17 - 100.50 --------------------------------------------------------- 1,164.69 1,164.69 1,164.69 1,164.69 1,164.69 --------------------------------------------------------- 200 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 bbbbb))))) DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx : : : : : (((((CCCCCooooonnnnntttttddddd.).).).).) DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo he fohe follllllololololowwwwwiiiiinnnnnggggg ::::: he fohe fo Property, plant and equipment Right to use assets Fair valuation of mutual fund Borrowing (EIR) Others MAT Credit Entitlement (B) (C) ies) (Net)et)et)et)et) ies) (N ies) (N l deferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets/(s/(s/(s/(s/(llllliabiabiabiabiabiitiitiitiitiities) (N l defe l defe TTTTTotototototaaaaal defe ies) (N l defe (A-B+C) se/incncncncncooooomememememe::::: se/i se/i DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax exx exx exx exx expppppeeeeennnnnse/i se/i he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g : he fohe fo DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo Provision for employee benefits Expenses allowed in the year of payment Unaborsbed losses Lease Liabilities Mark to Mark Forward Contracts - Cash Flow Hedge Others he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g : he fohe fo DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo Property, plant and equipment Right to use assets Fair valuation of mutual fund Borrowing (EIR) MAT Credit Entitlement Others et deferrrrrrrrrreeeeed td td td td taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeee et defe NNNNNet defe et defe et defe The above net deferred tax change is represented by amounts: Recognised in statement of profit and loss Recognised in other comprehensive income Recongnised in Retained Earning - Implementation of Ind AS 116: Leases (Amount in ` Lakh, unless otherwise stated) e sheetetetetet e she BBBBBaaaaalllllaaaaancncncncnce she e she e she As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 1,434.36 913.56 7.93 8.46 197.55 --------------------------------------------------------- 2,561.86 2,561.86 2,561.86 2,561.86 2,561.86 --------------------------------------------------------- 76.85 --------------------------------------------------------- (248.31) (248.31) (248.31) (248.31) (248.31) --------------------------------------------------------- 1,425.22 - - 9.23 315.29 --------------------------------------------------------- 1,749.74 1,749.74 1,749.74 1,749.74 1,749.74 --------------------------------------------------------- 244.59 --------------------------------------------------------- (340.46) (340.46) (340.46) (340.46) (340.46) --------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) nd lossssss nd los nd los ofit a ofit a t of prrrrrofit a t of p t of p SSSSStttttaaaaattttteeeeemememememennnnnt of p ofit and los nd los ofit a t of p As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 55.48 63.64 (526.10) 1,065.71 346.57 66.70 --------------------------------------------------------- 1,072.00 1,072.00 1,072.00 1,072.00 1,072.00 9.14 913.56 7.93 (0.77) - (117.74) --------------------------------------------------------- 812.12 812.12 812.12 812.12 812.12 --------------------------------------------------------- (259.89) (259.89) (259.89) (259.89) (259.89) ======================== 141.83 (299.35) (102.38) (12.33) 129.18 (56.29) - - (30.84) --------------------------------------------------------- 29.72 29.72 29.72 29.72 29.72 52.96 - (33.84) (2.57) (103.08) 203.75 --------------------------------------------------------- 117.22 117.22 117.22 117.22 117.22 --------------------------------------------------------- 87.50 87.50 87.50 87.50 87.50 ======================== 16.67 70.83 - c) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. d) MAT paid can be carried forward for a period of 15 years and can be set off against the future tax liabilities. MAT is recognised as a deferred tax asset only when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised. Pearl Global Industries Limited Annual Report 2019-20 201 Notes to standalone financial statements for the year ended March 31, 2020 E 13 : NON CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX AX AX AX AX ASSSSSSSSSSEEEEETTTTT E 13 : NO NONONONONOTTTTTE 13 : NO E 13 : NO E 13 : NO Advance income tax (Net of provision of ` 1,288.03 Lakh (March 31, 2019 : ` 1,032.42 Lakh) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 469.39 303.15 --------------------------------------------------------- 469.39 469.39 469.39 469.39 469.39 ======================== --------------------------------------------------------- 303.15 303.15 303.15 303.15 303.15 ======================== E 14 : OTHHHHHEEEEER AR AR AR AR ASSSSSSSSSSEEEEETSTSTSTSTS E 14 : OT E 14 : OT NONONONONOTTTTTE 14 : OT E 14 : OT (Unsecured, considered good, unless otherwise stated) Capital advances (Refer Note No. 46b) Balance with government authorities Balance with government authorities - considered doubtful Less: Loss Allowance Deferred Assets - Security Deposit Prepaid expenses Export incentive receivable Advances to related parties (Refer note no. 47) Advances to suppliers Other receivables E 15 : INVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEESSSSS E 15 : IN NONONONONOTTTTTE 15 : IN E 15 : IN E 15 : IN Raw materials Good in transit- raw material Work in progress Finished goods Scrap Stock Stores spares & others (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 95.46 91.80 22.74 (22.74) 299.10 13.04 - - - - ---------------------------------------------------------- 499.40 499.40 499.40 499.40 499.40 ======================== 56.66 128.86 22.74 (22.74) 172.09 28.19 - - - - ---------------------------------------------------------- 385.80 385.80 385.80 385.80 385.80 ======================== - 1,736.80 - - 43.80 338.02 2,062.72 92.93 692.35 22.49 ---------------------------------------------------------- 4,989.11 4,989.11 4,989.11 4,989.11 4,989.11 ======================== - 1,593.71 - - 18.21 140.16 1,817.61 95.64 180.52 66.93 ---------------------------------------------------------- 3,912.78 3,912.78 3,912.78 3,912.78 3,912.78 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 6,485.70 54.45 7,086.13 1,072.32 33.21 60.73 --------------------------------------------------------- 14,792.54 14,792.54 14,792.54 14,792.54 14,792.54 ======================== 5,831.14 16.81 6,234.86 1,283.14 111.08 36.01 --------------------------------------------------------- 13,513.04 13,513.04 13,513.04 13,513.04 13,513.04 ======================== 202 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 E 16 : TRAAAAADDDDDE RE RE RE RE RECECECECECEEEEEIIIIIVVVVVAAAAABBBBBLLLLLEEEEESSSSS E 16 : TR NONONONONOTTTTTE 16 : TR E 16 : TR E 16 : TR Trade receivables considered good - secured Trade receivables considered good - unsecured Trade receivables which have significant increase in credit risk Trade receivables - credit impaired Less: Allowance for Expected Credit Loss e is as fos fos fos fos follllllololololowswswswsws::::: e is a e is a n loss as as as as allllllololololowwwwwaaaaancncncncnce is a n losn los n los he moveeeeemememememennnnnt it it it it in los he mov he mov a)a)a)a)a) TTTTThe mov e is a he mov he yearrrrr he yea he yea g of t g of t BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at bt bt bt bt beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of the yea he yea g of t Loss allowances during the year Trade receivables written off / written back during the year he yearrrrr he yea he yea nd of t nd of t BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at tt tt tt tt the ehe ehe ehe ehe end of t nd of the yea he yea nd of t b) Trade receivables are generally on terms of 45- 60 days. (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 - 9,740.45 - 377.32 (377.32) --------------------------------------------------------- 9,740.45 9,740.45 9,740.45 9,740.45 9,740.45 --------------------------------------------------------- 374.33 374.33 374.33 374.33 374.33 2.99 - --------------------------------------------------------- 377.32 377.32 377.32 377.32 377.32 ======================== ----- 11,134.77 - 374.33 (374.33) --------------------------------------------------------- 11,134.77 11,134.77 11,134.77 11,134.77 11,134.77 --------------------------------------------------------- 5.155.155.155.155.15 369.18 - --------------------------------------------------------- 374.33 374.33 374.33 374.33 374.33 ======================== c) The company’s exposure to credit and currency risk, and loss allowances related to trade receivables are disclosed in note 44. d) Due from related parties is ` 2,125.58 lakh (March 31, 2019: ` 2,673.53 lakh) (Refer note no. 47). e) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other persons. E 17 : CASSSSSH AH AH AH AH ANNNNND CD CD CD CD CAAAAASSSSSH EQH EQH EQH EQH EQUUUUUIIIIIVVVVVAAAAALLLLLEEEEENNNNNTSTSTSTSTS E 17 : CA E 17 : CA NONONONONOTTTTTE 17 : CA E 17 : CA (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Balances with banks: Current account - - Deposits with original maturity of less than 3 months Cash on hand Cheque/drafts on hand 1,806.62 104.23 13.54 135.38 --------------------------------------------------------- 2,059.77 2,059.77 2,059.77 2,059.77 2,059.77 ======================== For the purpose of the statement of cash flow, the cash and cash equivalent are same given above. a) 1,937.13 50.00 7.95 239.56 --------------------------------------------------------- 2,234.64 2,234.64 2,234.64 2,234.64 2,234.64 ======================== Pearl Global Industries Limited Annual Report 2019-20 203 Notes to standalone financial statements for the year ended March 31, 2020 E 18 : OTHHHHHEEEEER BR BR BR BR BAAAAANNNNNK BK BK BK BK BAAAAALLLLLAAAAANNNNNCCCCCEEEEE E 18 : OT NONONONONOTTTTTE 18 : OT E 18 : OT E 18 : OT Earmarked balances with banks (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Unpaid dividend account Deposits with original maturity of more than 3 months but less than 12 months Deposits with original maturity of more than 12 months Balance with bank (Considered doubtful) Less: Loss Allowance 26.83 1,427.18 761.26 0.03 (0.03) --------------------------------------------------------- 2,215.28 2,215.28 2,215.28 2,215.28 2,215.28 761.26 761.26 761.26 761.26 761.26 --------------------------------------------------------- 1,454.01 1,454.01 1,454.01 1,454.01 1,454.01 ======================== a) Out of the total Fixed Deposits, the deposit with carrying value of `134.03 lakh (March 31, 2019 ` 1,853.28 lakh) are 31.85 899.76 45.54 0.03 (0.03) --------------------------------------------------------- 977.15 977.15 977.15 977.15 977.15 45.54 45.54 45.54 45.54 45.54 --------------------------------------------------------- 931.61 931.61 931.61 931.61 931.61 ======================== Less: Amount disclosed under “Other Financial Assets” (Refer Note No.11) pledged as security with various banks. E 19 : SHAAAAARRRRRE CAE CAE CAE CAE CAPPPPPIIIIITTTTTAAAAALLLLL E 19 : SH E 19 : SH NONONONONOTTTTTE 19 : SH E 19 : SH AAAAAuuuuuttttthohohohohorrrrriseiseiseiseiseddddd 51,440,000* (March 31, 2019: 51,440,000) equity shares of ` 10 each 10,000* (March 31, 2019: 10,000) 4% Non Cumulative Redeemable Preference Shares of ` 10 each 3,256,000* (March 31, 2019: 3,256,000) 10.5% Non Cumulative Redeemable Preference Shares of ` 100 each IIIIIssssssssssueueueueueddddd, s, s, s, s, subscubscubscubscubscrrrrribibibibibeeeeed ad ad ad ad and pnd pnd pnd pnd paaaaaid uid uid uid uid uppppp 21,663,937* (March 31, 2019: 21,663,937) Equity Shares of ` 10 each fully paid up * Number of Shares are given in absolute numbers. a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of is n of issssssueueueueued ad ad ad ad and snd snd snd snd subscubscubscubscubscrrrrribibibibibeeeeed shd shd shd shd shaaaaarrrrre ce ce ce ce caaaaapppppitititititaaaaalllll::::: n of is n of is n of is e of ````` 10 each e of EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre of e of 10 each 10 each 10 each e of 10 each BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 il 1, 2018 Changes during the year BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Changes during the year BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 5,144.00 1.00 3,256.00 5,144.00 1.00 3,256.00 --------------------------------------------------------- 8,401.00 8,401.00 8,401.00 8,401.00 8,401.00 --------------------------------------------------------- --------------------------------------------------------- 8,401.00 8,401.00 8,401.00 8,401.00 8,401.00 --------------------------------------------------------- 2,166.39 2,166.39 --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 ======================== --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 ======================== . of shaaaaarrrrreseseseses . of sh NNNNNooooo. of sh . of sh . of sh n ‘Lakkkkkhhhhh’)’)’)’)’) n ‘La (((((iiiiin ‘La n ‘La n ‘La --------------------------------------------------------- 216.639 - --------------------------------------------------------- 216.639 216.639 216.639 216.639 216.639 --------------------------------------------------------- - --------------------------------------------------------- 216.639 216.639 216.639 216.639 216.639 --------------------------------------------------------- AAAAAmoumoumoumoumounnnnnttttt --------------------------------------------------------- 2,166.39 - --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 --------------------------------------------------------- - --------------------------------------------------------- 2,166.39 2,166.39 2,166.39 2,166.39 2,166.39 --------------------------------------------------------- 204 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 ached td td td td to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses::::: ache s/ rigigigigighhhhhttttts as as as as attttttttttache ache s/ rs/ r s/ r bbbbb))))) TTTTTeeeeerrrrrmmmmms/ r ache The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The 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 of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. For the year ended March 31, 2020, the Board of Directors has not proposed any dividend for distribution to shareholders. For the year ended March 31, 2019, the amount of per share dividend proposed as distribution to equity shareholders was ‘ 3.00 per share. he Commmmmpppppaaaaannnnnyyyyy he Co he Co n 5% shaaaaarrrrres ies ies ies ies in tn tn tn tn the Co n 5% sh n 5% sh g morrrrre te te te te thhhhhaaaaan 5% sh g mo g mo rs holdldldldldiiiiinnnnng mo rs ho rs ho ils of shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ho ils of sh ils of sh ccccc))))) DDDDDetetetetetaaaaails of sh he Co n 5% sh g mo rs ho ils of sh me of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelderrrrr me of Sh me of Sh NNNNNaaaaame of Sh me of Sh Mrs. Payel Seth Mr. Deepak Seth Mr. Pulkit Seth Mr. Sanjiv Dhireshbhai Shah TTTTTotototototaaaaalllll E 20 : OTHHHHHEEEEER EQR EQR EQR EQR EQUUUUUIIIIITTTTTYYYYY E 20 : OT E 20 : OT NONONONONOTTTTTE 20 : OT E 20 : OT General reserve Securities premium Capital redemption reserve Amalgamation reserve Retained earnings Other Comprehensive Income - Cash Flow Hedge Reserve (net of tax) ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 . of shaaaaarrrrreseseseses . of sh . of sh NNNNNooooo. of sh . of sh . of shaaaaarrrrreseseseses . of sh . of sh HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % NNNNNooooo. of sh . of sh ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 4,413,635 2,862,145 6,947,621 1,553,274 ---------------------------------------------------------- 15,776,675 15,776,675 15,776,675 15,776,675 15,776,675 ======================== 20.37 13.21 32.07 7.17 ---------------------------------------------------------- 72.82 72.82 72.82 72.82 72.82 ======================== 4,413,635 2,862,145 6,947,621 - ---------------------------------------------------------- 14,223,401 14,223,401 14,223,401 14,223,401 14,223,401 ======================== HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % 20.37 13.21 32.07 - ---------------------------------------------------------- 65.65 65.65 65.65 65.65 65.65 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 4,204.36 17,103.90 95.00 625.95 7,037.53 (645.22) --------------------------------------------------------- 28,421.53 28,421.53 28,421.53 28,421.53 28,421.53 ======================== 4,204.36 17,103.90 95.00 625.95 7,422.88 - --------------------------------------------------------- 29,452.08 29,452.08 29,452.08 29,452.08 29,452.08 ======================== For Movement during the period in Other Equity, refer “Statement of Changes in Equity”. I.I.I.I.I. ose of reseeseeseeseeserrrrrvvvvveseseseses ose of r nd purprprprprpose of r ose of r nd pu IIIIII.I.I.I.I. NNNNNaaaaatttttuuuuurrrrre ae ae ae ae and pu nd pu ose of r nd pu a)a)a)a)a) GGGGGeeeeenenenenenerrrrraaaaal rl rl rl rl reseeseeseeseeserrrrrvvvvveeeee The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013. SSSSSeeeeecucucucucurrrrrititititities Pies Pies Pies Pies Prrrrreeeeemmmmmiuiuiuiuiummmmm The amount received in excess of face value of the equity shares is recognised in securities premium. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013. bbbbb))))) ccccc))))) CCCCCaaaaapppppitititititaaaaal Rl Rl Rl Rl Reeeeedededededemmmmmptptptptptioioioioion Rn Rn Rn Rn Reseeseeseeseeserrrrrvvvvveeeee This Reserve has been created at the time of merger of other companies in earlier years in accordance with the provisions of the Companies Act, 2013. Pearl Global Industries Limited Annual Report 2019-20 205 Notes to standalone financial statements for the year ended March 31, 2020 ddddd))))) AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioion Rn Rn Rn Rn Reseeseeseeseeserrrrrvvvvveeeee This Reserve has been created at the time of amalgamation of other companies in earlier years in accordance with the provisions of the Companies Act, 2013. e)e)e)e)e) RRRRRetetetetetaaaaaiiiiinenenenened Ed Ed Ed Ed Eaaaaarrrrrnnnnniiiiinnnnngggggsssss Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Out of the above, reserve on account of revaluation of assets of ` 398.64 lakh (March 31, 2019 396.76 lakh) is not avaliable for distribution. fffff ))))) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee This reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. This reserve will be reclassified to statement of profit and loss only when the hedged transaction affects the profit or loss. E 21 : LONNNNNG TEG TEG TEG TEG TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS E 21 : LO E 21 : LO NONONONONOTTTTTE 21 : LO E 21 : LO Corporate loan [refer note a(i), a(ii) & a(iii) below] Vehicle loans [refer note a(iv) below] From banks (secured) - - From financials institutional (secured) - Vehicle loans [refer note a(iv) below] Less: Amount disclosed under other financial liabilities as ‘Current maturities of long-term borrowings’ (refer note 22) e of secucucucucurrrrrititititity foy foy foy foy for ser ser ser ser secucucucucurrrrreeeeed lod lod lod lod loaaaaannnnns as as as as arrrrre :e :e :e :e : e of se e of se a)a)a)a)a) TTTTThe nhe nhe nhe nhe naaaaatttttuuuuurrrrre of se e of se (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 5,178.62 93.22 3,029.72 48.93 1,451.25 91.00 766.84 81.29 112.39 ---------------------------------------------------------- 5,384.23 5,384.23 5,384.23 5,384.23 5,384.23 - 106.50 ---------------------------------------------------------- 3,185.15 3,185.15 3,185.15 3,185.15 3,185.15 - 38.85 ---------------------------------------------------------- 1,581.10 1,581.10 1,581.10 1,581.10 1,581.10 1,581.10 38.91 ---------------------------------------------------------- 887.04 887.04 887.04 887.04 887.04 887.04 ---------------------------------------------------------- 5,384.23 5,384.23 5,384.23 5,384.23 5,384.23 ======================== ---------------------------------------------------------- 3,185.15 3,185.15 3,185.15 3,185.15 3,185.15 ======================== ---------------------------------------------------------- ----- ======================== ---------------------------------------------------------- ----- ======================== (i) Corporate Term Loan (Kotak Bank) is secured by charge first and exclusive charge over fixed assets and plant and machinery. (ii) Corporate Term Loan (Andhra Bank) is secured by first and exclusive charge on the entire fixed assets including machineries, land and building at Chennai and Bangalore Plant of the Company. In addition, Equitable Mortgage of Land & Building located at Survey No- 262A in Aryapakkam Village at Kancheepuram measuring 4.8053 acre in Company’s name. (iii) Corporate Term Loan (HDFC Bank) is secured by exclusive charge over movable fixed aseets of the Company, both present and future. The loan is also secured by personal guarantee of one of the Promoter Director of the Company and exclusive charge by way of equitable mortagage on Industrial Plot no.446, Udyog Vihar, Phase- V, Gurugram, Haryana. (iv) Corporate Term Loan (IndusInd Bank) is secured by exclusive charge over movable fixed aseets of the Company, both present and future. The loan is secured by exclusive charge by way of equitable mortagage on Industrial Plot no.51, Sector-32, Gurugram, Haryana. (v) Corporate Term Loan (RBL Bank) is secured by exclusive charge over movable fixed aseets of the Company, both present and future. The loan is secured by exclusive charge by way of equitable mortagage on Industrial Plot no.751, Pace City, Sector-37, Gurugram, Haryana. (vi) Vehicle loans are secured against hypothecation of respective vehicles. 206 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 ofileofile- se- se- se- se- secucucucucurrrrreeeeed lod lod lod lod loaaaaannnnnsssss ofileofile bbbbb))))) MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of se ofile of secucucucucurrrrreeeeed td td td td teeeeerrrrrm lom lom lom lom loaaaaannnnnsssss ofile of se ofile of se ofile of se s set out bt bt bt bt beloeloeloeloelow :w :w :w :w : s set ou is ais ais ais ais as set ou s set ou s set ou Term loan from banks are repayable in monthly/quarterly/yearly installments Vehicle loans from banks and financial institutions are repayable in monthly installments 2020-21 2020-21 2020-21 2020-21 2020-21 2021-22 2021-22 2021-22 2021-22 2021-22 2022-23 2022-23 2022-23 2022-23 2022-23 1,451.25 1,424.16 1,577.20 BBBBBeeeeeyoyoyoyoyondndndndnd 2023-24 2023-24 2023-24 2023-24 2023-24 2,177.25 129.85 64.75 77.35 63.51 c) The term loan(s) carries rate of interest ranging between 9.75% to 12.00% per annum. E 21A : SHOOOOORRRRRT TET TET TET TET TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS E 21A : SH E 21A : SH NONONONONOTTTTTE 21A : SH E 21A : SH Working capital loan from banks(secured) Rupee loan [refer note (a) below] - (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 15,251.01 --------------------------------------------------------- 15,251.01 15,251.01 15,251.01 15,251.01 15,251.01 ======================== 16,182.41 --------------------------------------------------------- 16,182.41 16,182.41 16,182.41 16,182.41 16,182.41 ======================== a) The nature of Security for short term borrowings are as under: - First pari-passu charge on movable fixed assets and whole of current assets including stocks of raw material, semi finished goods, finished goods, book debts, consumable stores and spares. - Mortgage of the properties situated at Plot No. H -597-603, RICCO Industrial Area, Bhiwadi, Distt. Alwar, Rajasthan and Plot No 16-17, Phase VI, Udyog Vihar,Gurgoan (Haryana). Fixed Deposit of ` 58 lakhs (March 31, 2019: ` 58 lakhs) Personal Guarantee by the promoter director of the Company - - (Amount in ` Lakh, unless otherwise stated) E 22 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL LL LL LL LL LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS E 22 : OT E 22 : OT NONONONONOTTTTTE 22 : OT E 22 : OT NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 Security deposit Book overdraft Current maturities of long-term borrowings (refer no. 21) Interest accrued but not due on borrowings Unpaid dividends Financial Liabilites at Fair Value through OCI-Cash Flow Hedge Creditors for capital goods Others 246.97 - - - - - - - ---------------------------------------------------------- 246.97 246.97 246.97 246.97 246.97 ======================== 222.00 - - - - - - - ---------------------------------------------------------- 222.00 222.00 222.00 222.00 222.00 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 - 26.87 1,581.10 37.48 31.85 991.80 30.21 48.19 ---------------------------------------------------------- 2,747.50 2,747.50 2,747.50 2,747.50 2,747.50 ======================== ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 - 150.48 887.04 24.67 26.83 - 849.25 - ---------------------------------------------------------- 1,938.27 1,938.27 1,938.27 1,938.27 1,938.27 ======================== NNNNNotototototeseseseses::::: a) The company’s exposure to currency and liquidity risk related to trade payables is disclosed in note 44. b) There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at the year end. c) Refer Note No. 21 for the terms and conditions, nature of security and maturity profile of the current maturities of long- term borrowings (forming part of long term borrowings of the Company). Pearl Global Industries Limited Annual Report 2019-20 207 Notes to standalone financial statements for the year ended March 31, 2020 E 23 : PROVOVOVOVOVIIIIISSSSSIIIIIOOOOONSNSNSNSNS E 23 : PR NONONONONOTTTTTE 23 : PR E 23 : PR E 23 : PR PPPPPrrrrrovovovovovisioisioisioisioision fon fon fon fon for er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefitsssss nefit nefit nefit Provision for compensated absenses (Refer note 39) Provision for gratuity (Refer note 39) E 24 : OTHHHHHEEEEER LR LR LR LR LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS E 24 : OT E 24 : OT NONONONONOTTTTTE 24 : OT E 24 : OT Advance received against sale of land Deferred government grant Deferred rental income Statutory dues Others E 25 : TRAAAAADDDDDE PE PE PE PE PAAAAAYYYYYAAAAABBBBBLLLLLEEEEE E 25 : TR E 25 : TR NONONONONOTTTTTE 25 : TR E 25 : TR (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 324.96 556.18 ---------------------------------------------------------- 881.14 881.14 881.14 881.14 881.14 ======================== 292.34 417.74 ---------------------------------------------------------- 710.08 710.08 710.08 710.08 710.08 ======================== 23.96 33.39 ---------------------------------------------------------- 57.35 57.35 57.35 57.35 57.35 ======================== 17.59 52.45 ---------------------------------------------------------- 70.04 70.04 70.04 70.04 70.04 ======================== (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 2,963.62 8.58 25.71 - - ---------------------------------------------------------- 2,997.91 2,997.91 2,997.91 2,997.91 2,997.91 ======================== 3,010.49 9.58 56.89 - - ---------------------------------------------------------- 3,076.96 3,076.96 3,076.96 3,076.96 3,076.96 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 - 145.61 31.91 590.78 46.88 ---------------------------------------------------------- 815.18 815.18 815.18 815.18 815.18 ======================== ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 - 145.61 32.56 659.72 - ---------------------------------------------------------- 837.89 837.89 837.89 837.89 837.89 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Total Outstanding dues of Micro and Small enterprises Total Outstanding dues of Creditors other than Micro and Small enterprises 63.70 10,450.22 --------------------------------------------------------- 10,513.92 10,513.92 10,513.92 10,513.92 10,513.92 ======================== a) Trade payable are generally on a credit period of not more than 90 days except in case of Micro & Small Enterprises which 331.05 8,800.36 --------------------------------------------------------- 9,131.41 9,131.41 9,131.41 9,131.41 9,131.41 ======================== are setlled within 45 days. b) This amount includes amount due to related parties amounting to ` 1,038.81 lakh (March 31, 2019: ` 2,736.01 lakh) (Refer Note No. 47) c) As per Schedule III of the Companies Act, 2013 and notification number GSR 719 (E) dated November 16, 2007 & as certified by the Management, the amount due to Micro & Small Enterprises as defined in Micro, Small and Medium Enterprises Development Act, 2006 is as under : DDDDDetetetetetaaaaails of d s definenenenened ud ud ud ud undendendendender Mr Mr Mr Mr MSSSSSMMMMMEEEEED AD AD AD AD Act, 2006 ct, 2006 ct, 2006 s defi s defi ises a ues to Mo Mo Mo Mo Micicicicicrrrrro ao ao ao ao and Snd Snd Snd Snd Smmmmmaaaaallllll El El El El Ennnnnttttteeeeerprprprprprrrrrises a ises a ues t ues t ils of d ils of d ct, 2006 ises as defi ils of dues t ct, 2006 s defi ises a ues t ils of d (i) The amount due thereon remaining unpaid to any supplier at the end of each accounting year - - Principal Interest (ii) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during each accounting year. (iii) The amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006. 331.05 - - - 63.70 - - - 208 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 (iv) The amount of interest accrued and remaining unpaid at the end of each accounting year (v) The amount of further interest remaining due and payable even in the succeeding year,until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act 2006 - - - - d) ‘Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act and as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date except disclosed above. e) The Company’s exposure to market and liquidity risk related to trade payables are disclosed in Note no. 44. E 26 : CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX LIX LIX LIX LIX LIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES (NS (NS (NS (NS (NEEEEETTTTT))))) E 26 : CU E 26 : CU NONONONONOTTTTTE 26 : CU E 26 : CU Provision for income tax(Net of advance tax Nil (March 31, 2019 ` 649.73 Lakh) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - --------------------------------------------------------- ----- ======================== 190.16 --------------------------------------------------------- 190.16 190.16 190.16 190.16 190.16 ======================== E 27 : REVVVVVEEEEENNNNNUUUUUE FRE FRE FRE FRE FROOOOOM OM OM OM OM OPPPPPEEEEERRRRRAAAAATTTTTIIIIIOOOOONSNSNSNSNS E 27 : RE E 27 : RE NONONONONOTTTTTE 27 : RE E 27 : RE Sale of product Job receipts Other operating revenues ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss ue frue fr RRRRReeeeevvvvveeeeennnnnue fr a)a)a)a)a) PPPPPeeeeerforforforforforrrrrmmmmmaaaaancncncncnce oe oe oe oe obbbbbllllligigigigigaaaaatttttioioioioionnnnn (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 76,327.18 129.54 6,076.61 --------------------------------------------------------- 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 ======================== 79,045.96 66.57 4,913.19 --------------------------------------------------------- 84,025.72 84,025.72 84,025.72 84,025.72 84,025.72 ======================== Revenue is recognised upon transfer of control of products. During the year, the Company has not entered into long term contracts with Customers and accordingly disclsoure of unsatisfied or remaining performance obligation (which is affected by several factors like changes in scope of Contracts, periodic revalidations, adjustment for revenue that has not been materialized, tax laws etc.) is not applicable to the Company. n of reeeeevvvvveeeeennnnnueueueueue: : : : : The table below presents disaggregated revenues from contracts with customers on the basis of n of r bbbbb))))) DisaDisaDisaDisaDisaggggggggggrrrrreeeeegggggaaaaatttttioioioioion of r n of r n of r geographical spread of the operations of the Company. The Company believes that this disaggregation best depicts how the nature, amount of revenues and cash flows are affected by market and other economic factors: RRRRReeeeevvvvveeeeennnnnue bue bue bue bue baaaaasesesesesed od od od od on Gn Gn Gn Gn Geeeeeooooogggggrrrrraaaaappppphhhhhyyyyy India Outside India ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss ue frue fr RRRRReeeeevvvvveeeeennnnnue fr (Amount in ` Lakh, unless otherwise stated) FFFFFooooor tr tr tr tr the yea he yea he yea he year er er er er endendendendendeddddd he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 FFFFFooooor tr tr tr tr the yea he yea he yea he year er er er er endendendendendeddddd he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 8,403.09 74,130.24 --------------------------------------------------------- 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 ======================== 6,019.12 78,006.61 --------------------------------------------------------- 84,025.73 84,025.73 84,025.73 84,025.73 84,025.73 ======================== Pearl Global Industries Limited Annual Report 2019-20 209 Notes to standalone financial statements for the year ended March 31, 2020 ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnns ws ws ws ws wititititith ch ch ch ch cooooonnnnntttttrrrrractactactactacteeeeed pd pd pd pd prrrrriciciciciceeeee ue frue fr n of reeeeevvvvveeeeennnnnue fr n of r ccccc))))) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of r n of r n of r (Amount in ` Lakh, unless otherwise stated) Contracted Price Less: Sales Returns Rebate and Discounts E 28 : OTHHHHHEEEEER IR IR IR IR INNNNNCCCCCOOOOOMMMMMEEEEE E 28 : OT E 28 : OT NONONONONOTTTTTE 28 : OT E 28 : OT Interest Income - On fixed deposits - On loans and advances - On amortisation of investment in preference shares Other non-operating income: IT/ SAP income Rental income Foreign exchange fluctuation Profit on sale of current investment - mutual fund Fair value gain on investments measured at fair value through profit and loss (net) Miscellaneous income E 29 : COSSSSST OT OT OT OT OF RF RF RF RF RAAAAAW MW MW MW MW MAAAAATTTTTEEEEERRRRRIIIIIAAAAAL CL CL CL CL COOOOONSNSNSNSNSUUUUUMMMMMEEEEEDDDDD E 29 : CO NONONONONOTTTTTE 29 : CO E 29 : CO E 29 : CO RRRRRaaaaaw Mw Mw Mw Mw Maaaaattttteeeeerrrrriaiaiaiaialllll Balance at the beginning of the Year Add:- Purchases during the year Less:- Balance at the end of the Year TTTTTotototototaaaaal rl rl rl rl raaaaaw mw mw mw mw maaaaattttteeeeerrrrriaiaiaiaial cl cl cl cl cooooonnnnnsssssuuuuummmmmptptptptptioioioioionnnnn NONONONONOTTTTTE 30 : PU E 30 : PU E 30 : PU E 30 : PURRRRRCCCCCHHHHHAAAAASSSSSE OE OE OE OE OF SF SF SF SF STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE E 30 : PU Purchases during the year he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 82,578.22 84,035.49 44.89 - --------------------------------------------------------- 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 ======================== 9.67 0.10 --------------------------------------------------------- 84,025.72 84,025.72 84,025.72 84,025.72 84,025.72 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 169.53 80.09 - 98.11 980.53 1,847.44 73.79 29.42 149.14 62.79 12.98 92.02 814.53 989.52 218.20 - 59.86 --------------------------------------------------------- 3,338.77 3,338.77 3,338.77 3,338.77 3,338.77 ======================== 291.44 --------------------------------------------------------- 2,630.62 2,630.62 2,630.62 2,630.62 2,630.62 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 5,831.14 29,197.60 --------------------------------------------------------- 35,028.74 6,485.70 --------------------------------------------------------- 28,543.04 28,543.04 28,543.04 28,543.04 28,543.04 ======================== 5,193.32 26,707.81 --------------------------------------------------------- 31,901.13 5,831.15 --------------------------------------------------------- 26,069.98 26,069.98 26,069.98 26,069.98 26,069.98 ======================== (Amount in ` Lakh, unless otherwise stated) FFFFFooooor tr tr tr tr the yea he yea he yea he year er er er er endendendendendeddddd he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 FFFFFooooor tr tr tr tr the yea he yea he yea he year er er er er endendendendendeddddd he yea MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 11,981.44 --------------------------------------------------------- 11,981.44 11,981.44 11,981.44 11,981.44 11,981.44 ======================== 16,506.39 --------------------------------------------------------- 16,506.39 16,506.39 16,506.39 16,506.39 16,506.39 ======================== 210 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 E 31 :CHCHCHCHCHAAAAANNNNNGGGGGEEEEES IS IS IS IS IN IN IN IN IN INNNNNVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEES OS OS OS OS OF FIF FIF FIF FIF FINNNNNIIIIISSSSSHHHHHEEEEED GD GD GD GD GOOOOOOOOOODDDDDSSSSS,,,,, E 31 : NONONONONOTTTTTE 31 : E 31 : E 31 : W W W W WOOOOORRRRRK IK IK IK IK IN PN PN PN PN PRRRRROOOOOGGGGGRRRRREEEEESSSSSS AS AS AS AS ANNNNND SD SD SD SD STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 (Amount in ` Lakh, unless otherwise stated) IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a he yearrrrr he yea he yea g of t ies at tt tt tt tt the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of t ies a ies a g of the yea he yea g of t ies a Work-in-progress Finished goods Scrap Stock he yearrrrr he yea he yea nd of t nd of t ies at tt tt tt tt the ehe ehe ehe ehe end of t ies a ies a IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a nd of the yea he yea nd of t ies a Work-in-progress Finished goods Scrap Stock se in in in in in innnnnvvvvveeeeennnnntttttooooorrrrry (y (y (y (y (A-A-A-A-A-B)B)B)B)B) se i se i se) / decccccrrrrreaeaeaeaease i se) / de se) / de (I(I(I(I(Incncncncncrrrrreaeaeaeaease) / de se i se) / de (((((AAAAA))))) (B)(B) (B)(B) (B) E 32 : EMPPPPPLLLLLOOOOOYYYYYEEEEEE BE BE BE BE BEEEEENNNNNEEEEEFIFIFIFIFITS ETS ETS ETS ETS EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE E 32 : EM E 32 : EM NONONONONOTTTTTE 32 : EM E 32 : EM Salaries, wages & bonus Contribution to provident and other fund Gratuity expense (refer note 39) Compensated absences (refer note 39) Staff training & welfare expenses E 33 : FINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOSSSSSTTTTT E 33 : FI NONONONONOTTTTTE 33 : FI E 33 : FI E 33 : FI on term loans,cash credit & working capital facilities delayed payment of taxes lease liabilities Interest expense - - - Unwinding of discount on security deposit Other borrowing cost 6,234.86 1,283.14 111.08 --------------------------------------------------------- 7,629.08 7,629.08 7,629.08 7,629.08 7,629.08 --------------------------------------------------------- 7,086.14 1,072.32 33.21 --------------------------------------------------------- 8,191.67 8,191.67 8,191.67 8,191.67 8,191.67 --------------------------------------------------------- (562.59) (562.59) (562.59) (562.59) (562.59) ======================== 3,178.48 3,296.54 286.66 --------------------------------------------------------- 6,761.68 6,761.68 6,761.68 6,761.68 6,761.68 --------------------------------------------------------- 6,234.86 1,283.14 111.08 --------------------------------------------------------- 7,629.08 7,629.08 7,629.08 7,629.08 7,629.08 --------------------------------------------------------- (867.40) (867.40) (867.40) (867.40) (867.40) ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 13,312.81 904.96 286.05 221.61 291.87 --------------------------------------------------------- 15,017.30 15,017.30 15,017.30 15,017.30 15,017.30 ======================== 11,605.86 789.32 307.19 279.91 208.36 --------------------------------------------------------- 13,190.64 13,190.64 13,190.64 13,190.64 13,190.64 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 1,859.50 1.74 300.01 30.32 256.88 --------------------------------------------------------- 2,448.45 2,448.45 2,448.45 2,448.45 2,448.45 ======================== 1,762.85 14.48 - 26.39 350.72 --------------------------------------------------------- 2,154.44 2,154.44 2,154.44 2,154.44 2,154.44 ======================== Pearl Global Industries Limited Annual Report 2019-20 211 Notes to standalone financial statements for the year ended March 31, 2020 E 34 : DEPPPPPRRRRRECECECECECIIIIIAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD AMOMOMOMOMORRRRRTTTTTIIIIISSSSSAAAAATTTTTIIIIIOOOOON EN EN EN EN EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE E 34 : DE NONONONONOTTTTTE 34 : DE E 34 : DE E 34 : DE Depreciation of property, plant and equipment (refer note no. 4) Depreciation & amortisation of Investment Properties (refer note no. 6) Amortisation of intangible assets (refer note no. 7) Amortisation of Right-of-use assets (refer note no. 50) E 35 : OTHHHHHEEEEER ER ER ER ER EXXXXXPPPPPEEEEENSNSNSNSNSEEEEESSSSS E 35 : OT E 35 : OT NONONONONOTTTTTE 35 : OT E 35 : OT Manufacturing expense Consumption of stores & spare parts Power & fuel Rent Rates & taxes Travelling & conveyance Freight & clearing charges Claim to buyers Repair & maintenance Plant & machinery Buildings Others Commission Legal & professional expenses Security charges Bank charges Insurance Expenses Payment to the auditors (refer note ‘a’ below) Bad debts and doubtful advances written off Loss Allowance for doubtful debts and advances Corporate social responsibility (refer note ‘b’ below) Loss on mark to market forward contracts Fair value loss on financial assets measured at fair value through profit and loss Miscellaneous expenses TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 1,277.51 85.75 47.70 350.70 --------------------------------------------------------- 1,761.66 1,761.66 1,761.66 1,761.66 1,761.66 ======================== 1,155.77 85.76 47.54 - --------------------------------------------------------- 1,289.07 1,289.07 1,289.07 1,289.07 1,289.07 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 15,421.92 363.05 1,237.27 526.23 110.11 1,284.84 2,059.74 1,356.27 76.87 9.07 337.00 59.54 666.77 304.43 354.08 89.70 28.53 - 47.92 22.15 462.80 - 890.06 --------------------------------------------------------- 25,708.34 25,708.34 25,708.34 25,708.34 25,708.34 ======================== 14,673.60 305.36 1,272.60 922.24 189.92 1,270.82 2,244.25 1,428.01 100.14 14.77 298.94 28.56 458.88 283.72 416.68 85.18 21.05 1.41 391.92 22.76 - 133.64 844.03 --------------------------------------------------------- 25,408.48 25,408.48 25,408.48 25,408.48 25,408.48 ======================== 212 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 rs is as fos fos fos fos follllllololololowswswswsws::::: rs is a ade to ao ao ao ao audududududitititititooooors is a rs is a ade t ils of paaaaayyyyymememememennnnnt mt mt mt mt made t ade t ils of p a) DDDDDetetetetetaaaaails of p ils of p rs is a ade t ils of p (Amount in ` Lakh, unless otherwise stated) i) Statutory audit fee PPPPPaaaaayyyyymememememennnnnt tt tt tt tt to Ao Ao Ao Ao Audududududitititititooooorrrrr - - Other Services - Reimbursement of Expenses he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 15.50 10.00 3.03 --------------------------------------------------------- 28.53 ======================== 12.40 6.00 2.65 --------------------------------------------------------- 21.05 ======================== e is as fos fos fos fos follllllololololowswswswsws::::: e is a e is a ils of Corprprprprpooooorrrrraaaaattttte Se Se Se Se Sooooociaciaciaciacial Rl Rl Rl Rl Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititity (Cy (Cy (Cy (Cy (CSSSSSR) exR) exR) exR) exR) expppppeeeeendndndndndititititituuuuurrrrre is a ils of Co ils of Co b) DDDDDetetetetetaaaaails of Co e is a ils of Co i) Gross amount required to be spent by the Company during the year(i.e. 2% of Average Net profits of last three years) ii) Amount spent during the year - - Construction/acquisitions of any asset For purpose other than above he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 22.14 - 22.15 16.39 - 22.76 c) Miscellaneous expenses includes expense towards purchase of Electoral Bonds amounting to ` 160.00 Lakh (March 31, 2019: Nil) from State bank of India under the Scheme - ‘The Electoral Bond Scheme, 2018’ notified by the Central Government vide Gazette Notification No. 20 dated January 2, 2018. E 36 : EXCCCCCEEEEEPPPPPTTTTTIIIIIOOOOONNNNNAAAAAL ITL ITL ITL ITL ITEEEEEMMMMMSSSSS E 36 : EX E 36 : EX NONONONONOTTTTTE 36 : EX E 36 : EX (Profit)/loss on sale of fixed assets (Refer Note ‘a’ below) Impairment of investment in subsidiaries (Refer Note ‘b’ below) (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 (143.29) 27.24 --------------------------------------------------------- (116.05) (116.05) (116.05) (116.05) (116.05) ======================== (1,719.28) 1,438.36 --------------------------------------------------------- (280.92) (280.92) (280.92) (280.92) (280.92) ======================== a) For March 31, 2020, (Profit)/loss on sale of fixed assets includes loss on sale of tangile assets of ` 41.19 lakh (March 31, 2019: ` 36.97 lakh) and profit on account of complusory acquisition of land by the Central Government under National Highway Act, 1956 of ` 184.47 lakh (March 31, 2019: ` 1756.25 lakh). b) On March 31,2019, the management of a domestic subsidary company Pearl Apparel Fashion Limited has decided to cease its existing business operations.Thus the Company has impaired its investments in such subsidary and recognised the same at its recoverable amount as at March 31,2019 resulting in a net loss of ` 1,438.36 lakh. (Diminution in value of equity shares: ` 1,617.20 lakh and esclation in value of investment in preference shares: ` 178.84 lakh). Further, during the year ended March 31, 2020, the management of the aforesaid subsidiary Company, by resolution dated March 20, 2020 has decided to apply for voluntary liquidation & in effect of above resolution, the Company further impaired its investments by ` 27.24 lakh in such subsidiary and recognised the same at its recoverable amount as at March 31, 2020. Pearl Global Industries Limited Annual Report 2019-20 213 Notes to standalone financial statements for the year ended March 31, 2020 E 37 : COCOCOCOCOMMMMMPPPPPOOOOONNNNNEEEEENNNNNTS OTS OTS OTS OTS OF OF OF OF OF OTTTTTHHHHHEEEEERRRRR E 37 : NONONONONOTTTTTE 37 : E 37 : E 37 : CCCCCOOOOOMMMMMPPPPPRRRRREEEEEHHHHHEEEEENSNSNSNSNSIIIIIVVVVVE IE IE IE IE INNNNNCCCCCOOOOOMMMMMEEEEE AAAAA (((((iiiii))))) BBBBB (((((iiiii))))) IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill not b nd lossssss nd los nd los ofit a sified td td td td to po po po po prrrrrofit a ofit a sifie l not be re re re re reeeeeclclclclclaaaaassssssifie sifie l not b l not b ofit and los nd los ofit a sifie l not b Re-measurement gains/ (losses) on defined benefit plans Income tax expense IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill bl bl bl bl be re re re re reeeeeclclclclclaaaaassssssifie nd lossssss nd los nd los ofit a sified td td td td to po po po po prrrrrofit a ofit a sifie sifie ofit and los nd los ofit a sifie Cash Flow Hedging reserve on forward contract Income tax expense E 38 : EARRRRRNNNNNIIIIINNNNNGGGGGS PS PS PS PS PEEEEER SR SR SR SR SHHHHHAAAAARRRRRE (EE (EE (EE (EE (EPPPPPS)S)S)S)S) E 38 : EA E 38 : EA NONONONONOTTTTTE 38 : EA E 38 : EA Profit attributable to the equity shareholders ( ( ( ( (AAAAA))))) Number/Weighted average number of equity shares (B) (B) (B) outstanding at the end of the year (B) (B) Nominal value of Equity shares A/B) (iiiiin n n n n `))))) A/B) ( A/B) ( Basic/Diluted Earning per share (((((A/B) ( A/B) ( (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 135.15 (47.23) (991.80) 346.57 --------------------------------------------------------- (557.31) (557.31) (557.31) (557.31) (557.31) ======================== 202.70 (70.83) - - --------------------------------------------------------- 131.87 131.87 131.87 131.87 131.87 ======================== (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 500.89 21,663,937 ` 10 2.31 --------------------------------------------------------- 2.31 --------------------------------------------------------- 2,150.19 21,663,937 ` 10 9.93 --------------------------------------------------------- 9.93 --------------------------------------------------------- E 39 : GRAAAAATTTTTUUUUUIIIIITTTTTY AY AY AY AY ANNNNND OD OD OD OD OTTTTTHHHHHEEEEER PR PR PR PR POOOOOSSSSSTTTTT-----EEEEEMMMMMPPPPPLLLLLOOOOOYYYYYMMMMMEEEEENNNNNT BT BT BT BT BEEEEENNNNNEEEEEFIFIFIFIFIT PT PT PT PT PLLLLLAAAAANSNSNSNSNS E 39 : GR E 39 : GR NONONONONOTTTTTE 39 : GR E 39 : GR a)a)a)a)a) DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnnsssss The Company makes contribution towards Employees Provident Fund, Employee’s State Insurance scheme and other welfare schemes. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The company during the year recognised the following amount in the Statement of profit and loss under company’s contribution to defined contribution plan. Employer’s Contribution to Provident Fund/ Pension Fund Employer’s Contribution to Employee State Insurance Employer’s Contribution to Welfare Fund TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 634.78 241.31 28.88 --------------------------------------------------------- 904.97 904.97 904.97 904.97 904.97 ======================== 492.36 268.79 28.17 --------------------------------------------------------- 789.32 789.32 789.32 789.32 789.32 ======================== The contribution payable to these schemes by the Company are at the rates specified in the rules of the schemes. bbbbb))))) DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p nefit p nefit p nefit plllllaaaaannnnnsssss nefit p In accordance with Ind AS 19 “Employee benefits”, an actuarial valuation on the basis of “Projected Unit Credit Method” was carried out, through which the Company is able to determine the present value of obligations. “Projected Unit Credit Method” recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. y schemememememe y sche iiiii))))) GrGrGrGrGraaaaatttttuuuuuititititity sche y sche y sche The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five 214 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. a) Gratuity in case of Gurgaon Division (Funded & maintained by Life Insurance Corporation of India) b) Gratuity in case of Chennai & Banglore Division (Unfunded) nefitsssss iiiiiiiiii))))) OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefit As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilised during the service, or encashed. Encashment can be made during the service, on early retirement, on withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits is determined based on the seniority and the respective employee’s salary. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive Income in the statement of profit and loss in case of Gratuity. All other expenses related to defined benefit plans are recognised in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive Income will not be reclassified to statement of profit and loss hence it is treated as part of retained earnings in the statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as past service costs. ccccc))))) The following tables summarize the components of net benefit expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the balance sheet for the defined benefit plan and other long term benefits. These have been provided on accrual basis, based on year end actuarial valuation. nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn nefit o nefit o CCCCChhhhhaaaaannnnnggggge ie ie ie ie in bn bn bn bn beeeeenefit o nefit o ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn nefit o nefit o g definenenenened bd bd bd bd beeeeenefit o g defi g defi OpOpOpOpOpeeeeennnnniiiiinnnnng defi nefit o g defi Interest cost Service cost Past Service cost Benefits paid Actuarial (gain) / loss on obligations ue of obbbbbllllligigigigigaaaaatttttioioioioionnnnn ue of o PPPPPrrrrreseeseeseeseesennnnnt vt vt vt vt vaaaaalllllue of o ue of o ue of o he yearrrrr he yea he yea nd of t aaaaas as as as as at tt tt tt tt the ehe ehe ehe ehe end of t nd of t nd of the yea he yea nd of t 617.55 617.55 617.55 617.55 617.55 48.11 111.96 - (47.38) (75.64) 654.60 654.60 654.60 654.60 654.60 241.04 241.04 241.04 241.04 241.04 18.78 133.46 - (24.66) (70.45) 298.17 298.17 298.17 298.17 298.17 309.93 309.93 309.93 309.93 309.93 24.11 143.13 - (182.62) 54.37 348.92 348.92 348.92 348.92 348.92 672.77 672.77 672.77 672.77 672.77 51.87 125.98 - (90.48) (142.59) 617.55 617.55 617.55 617.55 617.55 165.96 165.96 165.96 165.96 165.96 12.80 124.65 - (15.86) (46.51) 241.04 241.04 241.04 241.04 241.04 180.48 180.48 180.48 180.48 180.48 13.92 72.86 - (150.46) 193.13 309.93 309.93 309.93 309.93 309.93 ddddd))))) The following tables summarise the components of net benefit expense recognised in the Statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans: CosCosCosCosCost fot fot fot fot for tr tr tr tr the yea he year ir ir ir ir inclnclnclnclncludeudeudeudeudeddddd he yea he yea he yea uuuuundendendendender er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefit nefit Current service cost Past service cost Interest cost Expected return on plan assets Actuarial (gain) / loss NNNNNet cet cet cet cet cosososososttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) 111.96 - 48.11 (26.26) - 133.81 133.81 133.81 133.81 133.81 133.46 - 18.78 - - 152.24 152.24 152.24 152.24 152.24 143.13 - 24.11 - 54.37 221.61 221.61 221.61 221.61 221.61 125.98 - 51.87 (8.11) - 169.74 169.74 169.74 169.74 169.74 124.65 - 12.80 - - 137.45 137.45 137.45 137.45 137.45 72.86 - 13.92 - 193.13 279.91 279.91 279.91 279.91 279.91 Pearl Global Industries Limited Annual Report 2019-20 215 Notes to standalone financial statements for the year ended March 31, 2020 ue of the phe phe phe phe plllllaaaaan an an an an assssssetsetsetsetsets as as as as arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws::::: ue of t e)e)e)e)e) CCCCChhhhhaaaaannnnnggggges ies ies ies ies in tn tn tn tn the fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of t ue of t ue of t As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) Fair value of plan assets at the beginning Expected return on plan assets Contributions Benefits paid Actuarial gains / (losses) on the plan assets ue of plllllaaaaan an an an an assssssetsetsetsetsets as as as as at tt tt tt tt the ehe ehe ehe ehe en dn dn dn dn d ue of p ue of p FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of p ue of p 388.39 26.26 6.88 (47.38) (10.93) 363.22 363.22 363.22 363.22 363.22 - - - - - ----- I is as fos fos fos fos follllllololololowswswswsws::::: I is a I is a n/loss rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI is a n/los n/los il of actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin/los il of act il of act fffff ))))) DDDDDetetetetetaaaaail of act I is a n/los il of act - - - - - ----- 105.16 8.11 352.00 (90.48) 13.60 388.39 388.39 388.39 388.39 388.39 ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) Actuarial gain / (loss) for the year – obligation Actuarial gain / (loss) for the year - plan assets Unrecognised actuarial gains/(losses) at the end of year 75.64 (10.93) 64.71 64.71 64.71 64.71 64.71 70.45 - 70.45 70.45 70.45 70.45 70.45 142.59 13.60 156.19 156.19 156.19 156.19 156.19 46.51 - 46.51 46.51 46.51 46.51 46.51 e sheet det det det det daaaaattttte ae ae ae ae arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws::::: e she e she l actuuuuuaaaaarrrrriaiaiaiaial al al al al assssssssssuuuuummmmmptptptptptioioioioionnnnns as as as as at tt tt tt tt the bhe bhe bhe bhe baaaaalllllaaaaancncncncnce she l act l act ggggg ))))) PPPPPrrrrriiiiincincincincincipppppaaaaal act e she l act ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) EcEcEcEcEcooooonononononommmmmic aic aic aic aic assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss 1. Discount rate 2. Rate of increase in compensation levels DDDDDeeeeemomomomomogggggrrrrraaaaappppphhhhhic aic aic aic aic assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss 1. Expected average remaining working lives of employees(years) 2. Retirement Age (years) 3. Mortality Rate WitWitWitWitWithdrhdrhdrhdrhdraaaaawwwwwaaaaal Rl Rl Rl Rl Raaaaattttte (e (e (e (e (AAAAAvvvvveeeeerrrrraaaaaggggge ie ie ie ie innnnn cccccaaaaase of u se of u se of u se of unnnnnfffffuuuuundendendendended ad ad ad ad amoumoumoumoumounnnnnttttts)s)s)s)s) se of u 1. Ages from 18 to 30 Years 2. Ages from 30 to 45 Years 3. Ages Above 45 years 0.07 0.05 0.07 0.05 0.07 0.05 0.08 0.06 0.08 0.06 0.08 0.06 20.41 26.28 24.32 20.19 26.02 24.29 58 58 58 58 58 58 Indian Assured Lives Mortality (2012-14) (modified) ultimate Indian Assured Lives Mortality (2006-08) (modified) ultimate 0.03 0.02 0.01 0.06 0.06 0.06 0.05 0.04 0.04 0.03 0.02 0.01 0.04 0.04 0.03 0.04 0.03 0.03 The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. 216 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 s) forrrrr n actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin / (n / (n / (n / (n / (loslosloslosloss) fo s) fo s) fo n act e adjuuuuussssstttttmememememennnnnttttts os os os os on act n act e adj nd expppppeeeeerrrrrieieieieiencncncncnce adj e adj nd ex e Sheet aet aet aet aet and ex nd ex e She ies reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in tn tn tn tn the Bhe Bhe Bhe Bhe Baaaaalllllaaaaancncncncnce She e She ies r s) / liabiabiabiabiabilililililititititities r ies r s) / l et (assssssetsetsetsetsets) / l s) / l et (a hhhhh))))) NNNNNet (a et (a s) fo n act e adj nd ex e She ies r s) / l et (a nefit obbbbbllllligigigigigaaaaatttttioioioioion an an an an and pnd pnd pnd pnd plllllaaaaan an an an an assssssetsetsetsetsetsssss..... nefit o bbbbbeeeeenefit o nefit o nefit o PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) Present value of obligation Less: Fair value of plan assets s /( liabiabiabiabiabilililililititititity)y)y)y)y) s /( l NNNNNet aet aet aet aet assssssetsetsetsetsets /( l s /( l s /( l 654.60 363.22 (291.38) (291.38) (291.38) (291.38) (291.38) 298.17 - (298.17) (298.17) (298.17) (298.17) (298.17) 348.92 - (348.92) (348.92) (348.92) (348.92) (348.92) 617.55 388.39 (229.16) (229.16) (229.16) (229.16) (229.16) 241.04 - (241.04) (241.04) (241.04) (241.04) (241.04) 309.93 - (309.93) (309.93) (309.93) (309.93) (309.93) iiiii))))) Expected contribution for the next year is ` 417.54 Lakh (March 31, 2019: ` 352.13 Lakh) in respect of Gratuity. s showwwwwn bn bn bn bn beloeloeloeloelowwwww ::::: s sho s sho s is a s is a r signnnnnificificificificificaaaaannnnnt at at at at assssssssssuuuuummmmmptptptptptioioioioionnnnns is a r sig r sig lysis fo lysis fo jjjjj))))) A qA qA qA qA quuuuuaaaaannnnntttttitititititaaaaatttttivivivivive see see see see sennnnnsitsitsitsitsitivivivivivititititity ay ay ay ay annnnnaaaaalysis fo s is as sho lysis for sig s sho s is a r sig lysis fo PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs AAAAA..... DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttteeeee B.B.B.B.B. Effect on DBO due to 1%/0.5% increase in Discount Rate Effect on DBO due to 1%/0.5% decrease in Discount Rate y escaaaaalllllaaaaatttttioioioioion rn rn rn rn raaaaattttteeeee y esc y esc SSSSSaaaaalllllaaaaarrrrry esc y esc Effect on DBO due to 1%/0.5% increase in Salary Escalation Rate Effect on DBO due to 1%/0.5% decrease in Salary Escalation Rate ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd ))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd ))))) ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 d leavvvvveeeee d lea d lea GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened lea d lea (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) (61.88) (33.60) (37.00) (59.83) (31.94) (35.10) 72.58 40.04 43.98 70.24 38.86 42.08 73.15 40.33 44.31 70.80 39.38 (63.40) (34.40) (37.90) (61.30) (32.80) 42.50 36.00 hese not caaaaalculculculculculllllaaaaattttteeeeeddddd..... hese not c hese not c act of chaaaaannnnnggggge de de de de due tue tue tue tue to to to to to these not c act of ch act of ch l & hencncncncnce ie ie ie ie immmmmpppppact of ch l & he l & he e not maaaaattttteeeeerrrrriaiaiaiaial & he e not m e not m o morrrrrtttttaaaaalllllititititity & wy & wy & wy & wy & wititititithdrhdrhdrhdrhdraaaaawwwwwaaaaals als als als als arrrrre not m o moo mo o mo C.C.C.C.C. SSSSSeeeeennnnnsitsitsitsitsitivivivivivititititities dies dies dies dies due tue tue tue tue to mo hese not c act of ch l & he e not m k)k)k)k)k) RiskRiskRiskRiskRisk Discount Rate Salary Increases Withdrawals Morality and disability Reduction in discount rate in subsequent valuations can increase the liability. Actual salary increases will increase the defined benefit liability. Increase in salary increase rate assumption in future valuations which inturn also increase the liability. Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawals rates at subsequent valuations can impact defined benefit liability. Actual details and disability cases proving lower or higher than assumed in the valuation can impact the liabilities. n is as fos fos fos fos follllllololololowswswswsws::::: n is a nefit obbbbbllllligigigigigaaaaatttttioioioioion is a n is a nefit o ofile of definenenenened bd bd bd bd beeeeenefit o nefit o ofile of defi lllll))))) MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of defi ofile of defi n is a nefit o ofile of defi 0 to 1 years 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years from 5 years onwards As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 55.88 45.58 50.45 36.42 59.87 771.60 9.02 10.49 20.93 38.66 69.66 599.68 50.15 29.75 52.65 58.90 52.38 822.27 3.06 5.18 11.52 22.56 43.20 518.11 Pearl Global Industries Limited Annual Report 2019-20 217 Notes to standalone financial statements for the year ended March 31, 2020 E 40 : CAPPPPPIIIIITTTTTAAAAAL ML ML ML ML MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT E 40 : CA NONONONONOTTTTTE 40 : CA E 40 : CA E 40 : CA For the purpose of Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing borrowings, trade and other payables, less cash and cash equivalents. (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 et debt (AAAAA))))) et debt ( et debt ( NNNNNet debt ( et debt ( Equity share capital (Refer to note 19) Other equity (Refer to note 20) Borrowings (Refer to note 21 and 21A) Current maturity of long term loans (Refer to note 22) Trade payables (Refer to note 25) Other payables (Refer to note 22 and 24) Less: cash and cash equivalents (Refer to note 17) 19,367.56 887.04 10,513.92 5,188.08 (2,234.64) --------------------------------------------------------- 33,721.96 33,721.96 33,721.96 33,721.96 33,721.96 --------------------------------------------------------- 2,166.39 29,452.08 --------------------------------------------------------- 31,618.48 31,618.48 31,618.48 31,618.48 31,618.48 --------------------------------------------------------- 65,340.44 65,340.44 65,340.44 65,340.44 65,340.44 --------------------------------------------------------- 51.61% 51.61% 51.61% 51.61% 51.61% --------------------------------------------------------- No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2020 and March 31, 2019. In order to achieve overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. 20,635.24 1,581.10 9,131.41 5,226.45 (2,059.77) --------------------------------------------------------- 34,514.43 34,514.43 34,514.43 34,514.43 34,514.43 --------------------------------------------------------- 2,166.39 28,421.53 --------------------------------------------------------- 30,587.92 30,587.92 30,587.92 30,587.92 30,587.92 --------------------------------------------------------- 65,102.35 65,102.35 65,102.35 65,102.35 65,102.35 --------------------------------------------------------- 53.02% 53.02% 53.02% 53.02% 53.02% --------------------------------------------------------- A+B=C) A+B=C) nd net debt ( nd net debt ( CCCCCaaaaapppppitititititaaaaal al al al al and net debt ( A+B=C) nd net debt (A+B=C) A+B=C) nd net debt ( io (A/C)A/C)A/C)A/C)A/C) io ( io ( GGGGGeaeaeaeaearrrrriiiiinnnnng rg rg rg rg raaaaatttttio ( io ( l (B) l (B) TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaapppppitititititaaaaal (B) l (B) l (B) E 41 : DERRRRRIIIIIVVVVVAAAAATTTTTIIIIIVVVVVE IE IE IE IE INSNSNSNSNSTTTTTRRRRRUUUUUMMMMMEEEEENNNNNTS ATS ATS ATS ATS ANNNNND UD UD UD UD UNNNNNHHHHHEEEEEDDDDDGGGGGEEEEED FD FD FD FD FOOOOORRRRREEEEEIIIIIGGGGGN CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNCCCCCY EY EY EY EY EXXXXXPPPPPOOOOOSSSSSUUUUURRRRREEEEE E 41 : DE NONONONONOTTTTTE 41 : DE E 41 : DE E 41 : DE I)I)I)I)I) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss s hes he es not designnnnnaaaaattttteeeeed ad ad ad ad as he es not desig DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives not desig es not desig es not desig The Company uses forward currency contracts to hedge its foreign currency risks. Derivative contracts not designated by management as hedging instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Such contracts are entered into for periods consistent with exposure of the underlying transactions. DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives desig es desig es desig es designnnnnaaaaattttteeeeed ad ad ad ad as he s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss s hes he es desig The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Company. The Company has decided to apply hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered post April 01, 2019. Hedging strategies are decided and monitored periodically by the Risk Management Committee of the Board. 218 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddgggggeseseseses Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items in US dollar. These forecast transactions are highly probable. The foreign exchange forward contract balances vary with the level of expected foreign currency sales and changes in foreign exchange forward rates. s is as fos fos fos fos follllllololololowswswswsws::::: s is a ue of derrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts is a s is a ue of de TTTTThe fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of de ue of de s is a ue of de PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Fair value of foreign currency forward exchange contract designated as hedging instruments LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 AsAsAsAsAssetsetsetsetsetsssss ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 991.80 ----- The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale transactions. As a result, no hedge effectiveness arises requiring recognition through profit or loss. The cash flow hedges of the forecasted sale transactions for the year ended March 31, 2020 were assessed to be highly effective and unrealised loss of ` 991.80 lakh, with a deferred tax assets of ` 346.57 lakh relating to the hedging instruments, is included in OCI. The following table includes the maturity profile of the foreign exchange forward contracts: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2020 (INR) Foreign exchange forward contracts (highly probable forecast sales) USD Notional amount (in USD) Average forward rate(USD/INR) LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 1 monnnnnttttthhhhh 1 mo 1 mo 1 mo 1 mo 3,118.99 70.00 1 t1 t1 t1 t1 to 3o 3o 3o 3o 3 momomomomonnnnnttttthhhhhsssss 5,617.99 120.00 3 t3 t3 t3 t3 to 6o 6o 6o 6o 6 momomomomonnnnnttttthhhhhsssss 6,316.02 180.00 6 t6 t6 t6 t6 to 9o 9o 9o 9o 9 momomomomonnnnnttttthhhhhsssss 4,313.64 190.00 9 t9 t9 t9 t9 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss 4,625.57 240.00 TTTTTotototototaaaaalllll 23,992.21 800.00 43.00 72.53 77.00 72.96 85.92 73.51 58.00 74.37 61.00 75.83 324.92 73.84 The impact of the hedging instruments on the balance sheet is as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Foreign currency risk forward contract- As at March 31, 2020 (((((UUUUUSSSSSD)D)D)D)D) (I(I(I(I(INNNNNR iR iR iR iR in ln ln ln ln laaaaakkkkkhhhhh))))) NNNNNotototototioioioioionnnnnaaaaal al al al al amoumoumoumoumounnnnnttttt CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt LLLLLiiiiine itne itne itne itne iteeeeem im im im im in Bn Bn Bn Bn BSSSSSTTTTT CCCCChhhhhaaaaannnnnggggges ies ies ies ies in Fn Fn Fn Fn Faaaaaiiiiirrrrr vvvvvaaaaalllllue uue uue uue uue usesesesesed fod fod fod fod forrrrr meameameameameasssssuuuuurrrrriiiiinnnnnggggg neffectctctctctiviviviviveeeeenesnesnesnesnessssss neffe iiiiineffe neffe neffe he yearrrrr he yea he yea fofofofofor tr tr tr tr the yea he yea (991.80) w w w w wheheheheherrrrre He He He He Heeeeedddddgggggeeeee iiiiinnnnnssssstttttrrrrruuuuumememememennnnnt ist ist ist ist is iscloseddddd isclose dddddisclose isclose isclose (991.80) 324.92 Other financial Liabilities The impact of hedged items on the statement of financial position is, as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Highly probable forecast sales As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 CCCCChhhhhaaaaannnnnggggge ie ie ie ie in fn fn fn fn faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue uuuuusesesesesed fod fod fod fod for mea r mea r mea r measssssuuuuurrrrriiiiinnnnnggggg r mea iiiiineffe neffe neffe neffectctctctctiviviviviveeeeenesnesnesnesnessssss neffe - CCCCCaaaaash flo sh flo sh flo sh flowwwww sh flo HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee - Pearl Global Industries Limited Annual Report 2019-20 219 Notes to standalone financial statements for the year ended March 31, 2020 The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows: ofit and Lnd Lnd Lnd Lnd Losososososs)s)s)s)s) ofit a t of Prrrrrofit a ofit a t of P s of hedddddggggge ace ace ace ace accccccououououounnnnntttttiiiiinnnnng og og og og on Fn Fn Fn Fn Fiiiiinnnnnaaaaancianciancianciancial Pl Pl Pl Pl Positositositositositioioioioion (Sn (Sn (Sn (Sn (Stttttaaaaattttteeeeemememememennnnnt of P t of P s of he e of effectctctctcts of he s of he e of effe Disclosuuuuurrrrre of effe e of effe Disclos Disclos ofit a t of P s of he e of effe Disclos Disclos PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2020 Highly probable forecast sales act of hedddddgggggiiiiinnnnng og og og og on en en en en eqqqqquuuuuititititityyyyy act of he act of he IIIIImmmmmpppppact of he act of he l hedddddgggggiiiiinnnnnggggg l hel he l he TTTTTotototototaaaaal he gggggaaaaaiiiiin/(n/(n/(n/(n/(loslosloslosloss)s)s)s)s) rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn OOOOOCCCCCIIIII neffectctctctctiviviviviveeeeenesnesnesnesnessssss LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn IIIIIneffe neffe neffe neffe rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of t of t of t of t of r lossssss r los r los ofit o ppppprrrrrofit o ofit o ofit or los r los ofit o AAAAAmoumoumoumoumounnnnnttttt LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of sifieddddd sifie sifie rrrrreeeeeclclclclclaaaaassssssifie t of t of t of sifie t of nd lossssss nd los nd los ofit a ofit a ofit andndndndnd frfrfrfrfrooooom Om Om Om Om OCCCCCI tI tI tI tI tooooo ppppprrrrrofit a ofit a ppppprrrrrofit a ofit a ofit and los nd los ofit a ofit a r lossssss r los r los ofit o losloslosloslossssss ppppprrrrrofit o ofit o ofit or los r los ofit o (38.42) - - (38.42) Revenue from Operations Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2020 Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts Amount reclassified to profit & loss Tax effect CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololowwwww HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee (991.80) (38.42) 38.42 346.57 VVVVVaaaaallllluuuuuaaaaatttttioioioioion Tn Tn Tn Tn Teeeeechchchchchnnnnniqiqiqiqiqueueueueue The Company enters into derivative financial instruments which are valued using valuation techniques which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using present value calculations. Where quoted market prices are not available, fair values are based on Management best estimates, which are arrived at by the reference to market prices. rs of Unnnnnhehehehehedddddgggggeeeeed fod fod fod fod forrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy exy exy exy exy exppppposososososuuuuurrrrreseseseses::::: rs of U rs of U IIIIII)I)I)I)I) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of U rs of U PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2019 ch 31, 2019 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 Foreign currency receivable Foreign currency payable Foreign currency loan receivable FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy $7,711,568 $2,730,970 $846,699 DDDDDooooocucucucucumememememennnnnttttt CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy (((((AAAAAmoumoumoumoumounnnnnttttt ````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) 5,813.75 2,058.88 638.32 FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy - $6,875,405 $803,799 DDDDDooooocucucucucumememememennnnnttttt CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy (((((AAAAAmoumoumoumoumounnnnnttttt ````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) - 4,755.72 555.99 IIIIIIIIIII)I)I)I)I) In respect of the derivative contracts entered into by the Company, the Management asessess no material foreseeable losses as at the reporting date. NONONONONOTTTTTE 42 : FA E 42 : FA E 42 : FA E 42 : FAIIIIIR VR VR VR VR VAAAAALLLLLUUUUUEEEEESSSSS E 42 : FA Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values: 220 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 a) ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss::::: ue of fi FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi ue of fi ue of fi (Amount in ` Lakh, unless otherwise stated) CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 141.00 692.68 - 833.68 833.68 833.68 833.68 833.68 FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea r lossssss r los r los ofit o s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o ofit o s mea s mea ofit or los r los ofit o s mea Investment in equity instruments Investment in mutual fund Mark to Market Forward Contracts (((((AAAAA))))) s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt s mea s mea FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s mea Investment in equity & preference instruments Investment in Government Securities Security deposits Interest accrued on fixed deposits Deposits with original maturity of more than 12 months Loans to related parties Loans to others parties Interest accrued on loan to related parties Other receivables Trade receivable Cash and cash equivalents Other bank balances (B)(B) (B)(B) (B) A+B)A+B) A+B)A+B) TTTTTotototototaaaaal (l (l (l (l (A+B) 11,728.05 1.63 800.77 30.05 45.54 797.57 33.40 147.47 - 9,740.45 2,059.77 931.61 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 27,149.99 27,149.99 27,149.99 27,149.99 27,149.99 133.50 - 462.80 596.30 596.30 596.30 596.30 596.30 11,726.14 1.63 800.52 45.64 761.27 756.52 67.73 106.07 234.35 11,134.77 2,234.64 1,454.01 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,919.59 29,919.59 29,919.59 29,919.59 29,919.59 141.00 692.68 - 833.68 833.68 833.68 833.68 833.68 11,728.05 1.63 800.77 30.05 45.54 797.57 33.40 147.47 - 9,740.45 2,059.77 931.61 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 27,149.99 27,149.99 27,149.99 27,149.99 27,149.99 133.50 - 462.80 596.30 596.30 596.30 596.30 596.30 11,726.14 1.63 800.52 45.64 761.27 756.52 67.73 106.07 234.35 11,134.77 2,234.64 1,454.01 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,919.59 29,919.59 29,919.59 29,919.59 29,919.59 b) ue of finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies::::: ue of fi ue of fi FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi ue of fi (Amount in ` Lakh, unless otherwise stated) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue ies mea ies mea ies mea r Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooomememememe r Cor Co r Co ttttthhhhhrrrrrououououougggggh Oh Oh Oh Oh Otttttheheheheher Co Derivative Financial Instruments (((((AAAAA))))) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt ies mea ies mea ies mea Borrowings Lease Liabilities Security Deposit Book Overdraft Unpaid Dividend Trade payables Interest accrued but not due on borrowings Creditors for capital expenditure Others (B)(B) (B)(B) (B) A+B)A+B) TTTTTotototototaaaaal (l (l (l (l (A+B) A+B)A+B) CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 991.80 991.80 991.80 991.80 991.80 991.80 22,216.34 3,049.77 246.97 26.87 31.85 9,131.41 37.48 30.21 48.19 34,819.09 34,819.09 34,819.09 34,819.09 34,819.09 35,810.89 35,810.89 35,810.89 35,810.89 35,810.89 - ----- 991.80 991.80 991.80 991.80 991.80 991.80 - ----- 20,254.60 - 222.00 150.48 26.83 10,513.92 24.67 849.25 - 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 22,225.25 3,049.77 246.97 26.87 31.85 9,131.41 37.48 30.21 48.19 34,828.00 34,828.00 34,828.00 34,828.00 34,828.00 35,819.80 35,819.80 35,819.80 35,819.80 35,819.80 20,266.02 - 222.00 150.48 26.83 10,513.92 24.67 849.25 - 32,053.17 32,053.17 32,053.17 32,053.17 32,053.17 32,053.17 32,053.17 32,053.17 32,053.17 32,053.17 Pearl Global Industries Limited Annual Report 2019-20 221 Notes to standalone financial statements for the year ended March 31, 2020 Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to the short-term maturities of these instruments. Long-term borrowing includes vehicle loan and corporate loans obtained from banks and Financial institutions. Management determines vehicle loan and corporate loan to be at the market rate of interest as at the reporting date, accordingly, the carrying value of such long-term borrowing approximates fair value. n deteeeeerrrrrmmmmmiiiiinnnnniiiiinnnnng fg fg fg fg faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue n det ccccc))))) DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttte ue ue ue ue usesesesesed id id id id in det n det n det The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing rate of borrower which in case of financial liabilities is average market cost of borrowings of the Company and in case of financial asset is the average market rate of similar credit rated instrument. The company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. d) The following methods and assumptions were used to estimate the fair values: i) Fair values of the Company’s interest-bearing borrowings, loans and investment in preference shares in subsidiary are determined by using DCF method using discount rate that reflects the rate as at the end of the reporting period. ii) Fair value for security deposits paid & received (other than perpetual security deposits) has been presented based on the discounting factor as at the reporting date. iii) Fair value for all other non-current assets and liabilities is equivalent to the amortised cost, interest rate on them is equivalent to the market rate of interest. iv) For other financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values. v) Specific valuation techniques used to value financial instruments include: - - - The fair values of investments In mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors. Investment in quoted equity instruments of entities other than subsidiaries has been determined on the basis of quoted rates available from securities markets in India. The fair value of derivative financial instruments (forward exchange contract) has been determined on the basis of mark to market valuation. E 43 : FAIIIIIR HR HR HR HR HIIIIIEEEEERRRRRAAAAARRRRRCCCCCHHHHHYYYYY E 43 : FA NONONONONOTTTTTE 43 : FA E 43 : FA E 43 : FA All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either directly or indirectly. Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on observable market data. The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities 222 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020: ch 31, 2020: ch 31, 2020: ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea isclos a) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos isclos ch 31, 2020: ch 31, 2020: ue mea isclos As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt AsAsAsAsAssetsetsetsetsets mea r lossssss r los r los ofit o s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o ofit o s mea s mea ofit or los r los ofit o s mea Investment in equity instruments Investment in mutual fund TTTTTotototototaaaaal Al Al Al Al A FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt s mea s mea s mea Investment in equity & preference instruments Investment in Government Securities Security deposits Interest accrued on fixed deposits Deposits with original maturity of more than 12 months Loans to related parties Loans to others parties Interest accrued on loan to related parties Trade receivable* Cash and cash equivalents* Other bank balances* TTTTTotototototaaaaal Al Al Al Al A TTTTTotototototaaaaal (l (l (l (l (A+B) A+B) A+B) A+B) A+B) 141.00 692.68 833.68 833.68 833.68 833.68 833.68 11,728.05 1.63 800.77 30.05 45.54 797.57 33.40 147.47 9,740.45 2,059.77 931.61 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 27,150.00 27,150.00 27,150.00 27,150.00 27,150.00 - - ----- 11,728.05 1.63 800.77 30.05 45.54 797.57 33.40 147.47 9,740.45 2,059.77 931.61 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) 141.00 692.68 833.68 833.68 833.68 833.68 833.68 - - - - - - - - - - - ----- 833.68 833.68 833.68 833.68 833.68 FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) el 3) el 3) - - ----- - - - - - - - - - - - ----- ----- - - ----- - - - - - - - - - - - ----- ----- ch 31, 2020: ch 31, 2020: ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020: ies a ies a ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a ue mea ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea isclos isclos b) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos ch 31, 2020: ch 31, 2020: ies a ue mea isclos As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 2) el 2) (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 3) el 3) (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) TTTTTotototototaaaaalllll 141.00 692.68 833.68 833.68 833.68 833.68 833.68 11,728.05 1.63 800.77 30.05 45.54 797.57 33.40 147.47 9,740.45 2,059.77 931.61 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 27,150.00 27,150.00 27,150.00 27,150.00 27,150.00 TTTTTotototototaaaaalllll ies measssssuuuuurrrrreeeeed ad ad ad ad at Ft Ft Ft Ft Faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue ies mea ies mea FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies mea r Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooomememememe r Co r Co ttttthhhhhrrrrrououououougggggh Oh Oh Oh Oh Otttttheheheheher Co r Co Derivative Financial Instruments (((((AAAAA))))) ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt ies mea ies mea FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies mea Borrowings Lease Liabilities Security Deposit Book Overdraft Unpaid Dividend Trade payables* Interest accrued but not due on borrowings* Creditors for capital expenditure* Others (B) (B) (B) (B) (B) A+B) A+B) TTTTTotototototaaaaal (l (l (l (l (A+B) A+B) A+B) 991.80 991.80 991.80 991.80 991.80 991.80 22,216.34 3,049.77 246.97 26.87 31.85 9,131.41 37.48 30.21 48.19 34,819.09 34,819.09 34,819.09 34,819.09 34,819.09 35,810.88 35,810.88 35,810.88 35,810.88 35,810.88 - ----- - 3,049.77 246.97 26.87 31.85 9,131.41 37.48 30.21 48.19 12,602.75 12,602.75 12,602.75 12,602.75 12,602.75 12,602.75 12,602.75 12,602.75 12,602.75 12,602.75 - ----- - - - - - - - - - ----- ----- 991.80 991.80 991.80 991.80 991.80 991.80 - - - - - - - - - ----- 991.80 991.80 991.80 991.80 991.80 - ----- 991.80 991.80 991.80 991.80 991.80 991.80 22,225.25 - - - - - - - - 22,225.25 22,225.25 22,225.25 22,225.25 22,225.25 22,225.25 22,225.25 22,225.25 22,225.25 22,225.25 22,225.25 3,049.77 246.97 26.87 31.85 9,131.41 37.48 30.21 48.19 34,828.00 34,828.00 34,828.00 34,828.00 34,828.00 35,819.79 35,819.79 35,819.79 35,819.79 35,819.79 Pearl Global Industries Limited Annual Report 2019-20 223 Notes to standalone financial statements for the year ended March 31, 2020 ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019: ch 31, 2019: ch 31, 2019: ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea isclos c) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos isclos ch 31, 2019: ch 31, 2019: ue mea isclos As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) el 3) el 3) QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue AsAsAsAsAssetsetsetsetsets mea s mea s mea s mea r lossssss r los r los ofit o ttttthhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o ofit o ofit or los r los ofit o Investment in equity instruments Mark to Market Forward Contracts TTTTTotototototaaaaal Al Al Al Al A s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt s mea FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea s mea s mea Investment in equity & preference instruments Investment in Government Securities Security deposits Interest accrued on fixed deposits Deposits with original maturity of more than 12 months Loans to related parties Loans to others parties Interest accrued on loan to related parties Other receivables Trade receivable* Cash and cash equivalents* Other bank balances* TTTTTotototototaaaaal Al Al Al Al A TTTTTotototototaaaaal (l (l (l (l (A+B) A+B) A+B) A+B) A+B) 133.50 462.80 596.30 596.30 596.30 596.30 596.30 11,726.14 1.63 800.52 45.64 761.27 756.52 67.73 106.07 234.35 11,134.77 2,234.64 1,454.01 11,726.14 1.63 800.52 45.64 761.27 756.52 67.73 106.07 234.35 11,134.77 2,234.64 1,454.01 - - ----- 133.50 - 133.50 133.50 133.50 133.50 133.50 - 462.80 462.80 462.80 462.80 462.80 462.80 - - - - - - - - - - - - ----- - - - - - - - - - - - - ----- 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,919.59 29,919.59 29,919.59 29,919.59 29,919.59 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 133.50 133.50 133.50 133.50 133.50 462.80 462.80 462.80 462.80 462.80 ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019: ch 31, 2019: ch 31, 2019: ies a ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a ies a ue mea isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea isclos d) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos isclos ch 31, 2019: ch 31, 2019: ies a ue mea isclos As AAs AAs AAs AAs Attttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2019 2019 2019 2019 2019 AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd CosCosCosCosCosttttt FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt ooooobsebsebsebsebserrrrr vvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 2) el 2) (L(L(L(L(Leeeeevvvvvel 2) el 2) el 2) SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele iiiiinnnnnpupupupuputttttsssss el 3) el 3) (L(L(L(L(Leeeeevvvvvel 3) el 3) el 3) QQQQQuotuotuotuotuoteeeeeddddd ppppprrrrricicicicices ies ies ies ies innnnn actactactactactiviviviviveeeee mmmmmaaaaarrrrrkkkkketetetetetsssss el 1) el 1) (L(L(L(L(Leeeeevvvvvel 1) el 1) el 1) ies measssssuuuuurrrrreeeeeddddd ies mea ies mea FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies mea aaaaat at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt Borrowings Security Deposit Book Overdraft Unpaid Dividend Trade payables* Interest accrued but not due on borrowings* Creditors for capital expenditure* 20,254.60 222.00 150.48 26.83 10,513.92 24.67 849.25 - 222.00 150.48 26.83 10,513.92 24.67 849.25 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 11,787.15 11,787.15 11,787.15 11,787.15 11,787.15 - - - - - - - ----- - - - - - - - ----- 20,266.02 - - - - - - 20,266.02 222.00 150.48 26.83 10,513.92 24.67 849.25 20,266.02 20,266.02 20,266.02 20,266.02 20,266.02 32,053.17 32,053.17 32,053.17 32,053.17 32,053.17 TTTTTotototototaaaaalllll 133.50 462.80 596.30 596.30 596.30 596.30 596.30 11,726.14 1.63 800.52 45.64 761.27 756.52 67.73 106.07 234.35 11,134.77 2,234.64 1,454.01 29,323.29 29,323.29 29,323.29 29,323.29 29,323.29 29,919.59 29,919.59 29,919.59 29,919.59 29,919.59 TTTTTotototototaaaaalllll - - ----- - - - - - - - - - - - - ----- ----- 224 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 * Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to the short-term maturities of these instruments. There have been no transfers between Level 1 and Level 2 during the period. Specific valuation techniques used to value financial instruments. (refer note 42) E 44 : FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL RL RL RL RL RIIIIISSSSSK MK MK MK MK MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT OT OT OT OT OBBBBBJJJJJECECECECECTTTTTIIIIIVVVVVEEEEES AS AS AS AS ANNNNND PD PD PD PD POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS E 44 : FI NONONONONOTTTTTE 44 : FI E 44 : FI E 44 : FI The Company’s principal financial liabilities comprises of trade and other payables, borrowings, current maturity of borrowings, interest accrued and capital creditors. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets includes Investment in mutual funds, loans to related parties, security deposits, trade receivables, cash and cash equivalents, deposits with bank, interest accrued in deposits, receivables from related and other parties and interest accrued thereon. The Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior level management oversees the management of these risks and is supported by finance department that advises on the appropriate financial risk governance framework. AAAAA..... MMMMMaaaaarrrrrkkkkket ret ret ret ret riskiskiskiskisk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk borrowings, short term deposits and derivative financial instruments. The sensitivity analysis in the following sections relate to the position as at March 31, 2020 and March 31, 2019. iiiii))))) IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte re re re re riskiskiskiskisk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to interest rate risk. The Company manages its net exposure to interest rate risk related to borrowings, by balancing a proportion of fixed rate and floating rate borrowing in its total borrowing portfolio. IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte see see see see sennnnnsitsitsitsitsitivivivivivititititityyyyy The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the portion of borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs March 31, 2020 March 31, 2019 r der decccccrrrrreaeaeaeaeasesesesese DDDDDeeeeecccccrrrrreaeaeaeaease/( r der de se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se) se/( se/( IIIIIncncncncncrrrrreaeaeaeaease ose ose ose ose or de se/( ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx ofit b ofit b iiiiin pn pn pn pn prrrrrofit b iiiiin bn bn bn bn baaaaasis psis psis psis psis poooooiiiiinnnnntttttsssss ofit b +50 10.62 (10.62) -50 10.84 +50 (10.84) -50 The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years. Pearl Global Industries Limited Annual Report 2019-20 225 Notes to standalone financial statements for the year ended March 31, 2020 iiiiiiiiii))))) FFFFFooooorrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy ry ry ry ry riskiskiskiskisk Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in exchange rates. Foreign currency risk senstivity is the impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities on unhedged exposures. The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs March 31, 2020 March 31, 2019 B.B.B.B.B. CCCCCrrrrreeeeedddddit rit rit rit rit riskiskiskiskisk CCCCChhhhhaaaaannnnnggggges ies ies ies ies innnnn DDDDDeeeeecccccrrrrreaeaeaeaease/( se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se) se/( se/( se/( ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx ofit b ofit b i i i i in pn pn pn pn prrrrrofit b ofit b (71.03) 71.03 209.99 (209.99) exexexexexchchchchchaaaaannnnnggggge re re re re raaaaattttteeeee +5% -5% +5% -5% Credit risk is the risk that counterparty will default on its contractual obligations resulting in finance loss to the Company. Credit risk arise from Cash and cash equivalents, deposit with banks, trade receivables and other financial assets measure at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporate this information into its credit risk control. The Company also uses expected credit loss model to assess the impairement loss in Trade Receivables and makes an allowance of doubtful trade receivables using this model. 1) The ageing anaysis of trade receivables as of the reporting date is as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Trade Receivables as of March 31, 2020 Trade Receivables as of March 31, 2019 NNNNNeiteiteiteiteitheheheheher pr pr pr pr paaaaasssssttttt ue norrrrr ue no ue no dddddue no ue no iiiiimmmmmpppppaaaaaiiiiirrrrreeeeeddddd 5,787.82 LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 30 d30 d30 d30 d30 daaaaaysysysysys 30 t30 t30 t30 t30 to 90o 90o 90o 90o 90 dddddaaaaaysysysysys o 180 MMMMMooooorrrrre te te te te thhhhhaaaaannnnn o 180 o 180 90 t90 t90 t90 t90 to 180 o 180 180 daaaaaysysysysys 180 d 180 d dddddaaaaaysysysysys 180 d 180 d TTTTTotototototaaaaalllll 1,705.85 748.31 249.66 1,248.81 9,740.45 3,712.62 3,250.65 2,324.81 423.30 1,423.39 11,134.77 The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets. 2) Exposure to Risk, in respect of the guarantees given by the Company: The disclosure in respect of credit risk exposures which are not credit imparied or where there has not been a significant increase in credit risk since initial recognition are as under: ofileofile ----- QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de daaaaattttta aba aba aba aba abououououout ext ext ext ext exppppposososososuuuuurrrrre ae ae ae ae and mnd mnd mnd mnd maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile ofileofile e Giveeeeen tn tn tn tn tooooo e Giv GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeee Giv e Giv e Giv Standard Chartered Bank, Hongkong Branch DDDDDetetetetetaaaaails of ils of ils of ils of ils of ubsidiaiaiaiaiarrrrryyyyy SSSSSubsid ubsid ubsid ubsid Pearl Global (HK) Limited PPPPPuuuuurprprprprpose of ose of ose of ose of ose of GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee Securing Credit Facilities AAAAAmoumoumoumoumounnnnnt at at at at as as as as as attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 USD 120.00 lakh equivalent to ` 9,046.80 lakh GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee VVVVVaaaaalllllid Uid Uid Uid Uid Uptptptptptooooo February 05, 2021 HSBC Bank, Hongkong Branch Pearl Global (HK) Limited Standard Chartered Bank, Bangladesh Branch Norp Knit Industries Limited Securing Credit Facilities USD 200.00 lakh November 10, 2021 equivalent to ` 15,078.00 lakh Securing Credit BDT 9,000.00 lakh equivalent to ` 7,967.43 lakh Facilities October 11, 2021 226 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 - PPPPPooooolllllicicicicicy of my of my of my of my of maaaaannnnnaaaaagggggiiiiinnnnng rg rg rg rg riskiskiskiskisk::::: The Company considers the probability of default upon initial recognition and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default as at the reporting date with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward- looking information such as significant changes in the value of guarantee or in the quality of exposure or credit enhancements. sh depppppositositositositositsssss sh de 3)3)3)3)3) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts as as as as and cnd cnd cnd cnd caaaaash de sh de sh de Credit risk from balances with banks, investment in mutual funds and loan to related parties is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Company’s finance committee. C.C.C.C.C. LLLLLiqiqiqiqiquuuuuidididididititititity ry ry ry ry riskiskiskiskisk Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including loans from banks at an optimised cost. ies baaaaasesesesesed od od od od on cn cn cn cn cooooonnnnntttttrrrrractactactactactuuuuuaaaaalllll ies b ies b s finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities b s fi s fi he Commmmmpppppaaaaannnnnyyyyy’’’’’s fi he Co he Co ofile of t ofile of t ises the mhe mhe mhe mhe maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of t ises t ises t TTTTThe the the the the tababababable ble ble ble ble beloeloeloeloelow sw sw sw sw suuuuummmmmmmmmmaaaaarrrrrises t ofile of the Co ies b s fi he Co ofile of t ises t uuuuundndndndndiscisciscisciscououououounnnnnttttteeeeed pd pd pd pd paaaaayyyyymememememennnnntttttsssss..... ch 31, 2020 ch 31, 2020 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 Borrowings Lease Liabilities Current maturities of long-term borrowings Trade payables Other financial liabilities TTTTTotototototaaaaalllll As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 Borrowings Current maturities of long-term borrowings Trade payables Other financial liabilities TTTTTotototototaaaaalllll LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 15,283.48 56.90 349.69 9,131.41 1,375.88 26,197.36 26,197.36 26,197.36 26,197.36 26,197.36 LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 16,182.41 230.90 10,513.92 1,051.23 27,978.46 27,978.46 27,978.46 27,978.46 27,978.46 3 t3 t3 t3 t3 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss 97.39 179.46 1,231.41 - - 1,508.25 1,508.25 1,508.25 1,508.25 1,508.25 3 t3 t3 t3 t3 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss ----- 656.14 - - 656.14 656.14 656.14 656.14 656.14 1 t1 t1 t1 t1 to 5o 5o 5o 5o 5 yeayeayeayeayearsrsrsrsrs 4,708.37 1,208.45 - - 37.48 5,954.30 5,954.30 5,954.30 5,954.30 5,954.30 1 t1 t1 t1 t1 to 5o 5o 5o 5o 5 yeayeayeayeayearsrsrsrsrs 3,185.15 - - 154.93 3,340.08 3,340.08 3,340.08 3,340.08 3,340.08 > 5 yearsrsrsrsrs > 5 yea > 5 yea > 5 yea > 5 yea TTTTTotototototaaaaalllll 546.00 1,604.97 - - - 2,150.97 2,150.97 2,150.97 2,150.97 2,150.97 20,635.24 3,049.78 1,581.10 9,131.41 1,413.36 35,810.89 35,810.89 35,810.89 35,810.89 35,810.89 > 5 yearsrsrsrsrs > 5 yea > 5 yea > 5 yea > 5 yea TTTTTotototototaaaaalllll ----- - - 67.07 67.07 67.07 67.07 67.07 67.07 19,367.56 887.04 10,513.92 1,273.23 32,041.75 32,041.75 32,041.75 32,041.75 32,041.75 NONONONONOTTTTTE 45 : SEG E 45 : SEG E 45 : SEG E 45 : SEGMMMMMEEEEENNNNNT INT INT INT INT INFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN E 45 : SEG a) The Company’s operating segments are established on the basis of those components that are evaluated regularly by the Executive Committee (the ‘Chief Operating Decision Maker’ as defined in Ind AS 108 - ‘Operating Segments’). In light of Para 4 of Ind AS 108- Operating Segments, the Company has presented segment information on geographical basis in its consolidated financial statements. b) Revenue from major customer: During the year, the Company generates 90% of its external revenues from eight (8) customers. Pearl Global Industries Limited Annual Report 2019-20 227 Notes to standalone financial statements for the year ended March 31, 2020 E 46 : CONNNNNTTTTTIIIIINNNNNGGGGGEEEEENNNNNT LT LT LT LT LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND CD CD CD CD COOOOOMMMMMMMMMMIIIIITTTTTMMMMMEEEEENNNNNTSTSTSTSTS E 46 : CO NONONONONOTTTTTE 46 : CO E 46 : CO E 46 : CO t not prrrrrovovovovovideideideideided fod fod fod fod for)r)r)r)r) t not p he exttttteeeeennnnnt not p t not p he ex ies (TTTTTo to to to to the ex he ex ies ( a)a)a)a)a) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities ( ies ( t not p he ex ies ( I The Company has reviewed all its pending claims, litigations and other proceedings and has adequately provided for wherever required. However, wherever it is difficult for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgement/decisions pending with various forums/authorities, the Company has disclosed the same as Contingent Liabilities (pending resolution of the respective proceedings). The Company does not expect the outcome of these proceedings to have a material or adverse effect on financial position of the Company. Also, the Company does not expect any reimbursements in respect of the below contingent liabilities. (i) Claims against the Company not acknowleged as debts corresponding to : (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - - - Tax Demand as per Sec 143(1) of Income Tax Act , 1961 (with respect to Assessment Year 2014-15) Tax Demand as per Sec 143(1) of Income Tax Act , 1961 (with respect to Assessment Year 2015-16) Tax Demand as per Sec 143(3) of Income Tax Act , 1961 (with respect to Assessment Year 2016-17) - Rectification application has been filled with A.O Tax Demand as per Sec 143(3) of Income Tax Act , 1961 (with respect to Assessment Year 2017-18) - Demand as per TDS (TRACES) portal - CPC - - 8.30 38.83 16.61 16.52 1.25 98.01 38.83 - 18.43 (ii) Several Legal Cases of labour pending at labour Court, Civil Court and High Court. The Company has assesed and believe that none of these cases, either individually or in aggregate, are expected to have any material adverse effect on its financial statements. However, Since it is difficult for the Company to estimate the timings of the cash outflows, if any, no further provision or seperate disclosure is made in books of accounts. (iii) As per the order dated July 13, 2016 issued by Hon’ble Madras High Court, minimum wages shall be paid to the employees retrospectively from December 2014 to June 2016. However, the management is of the view that the wages have to be paid only to the employees working presently in the company and also no PF & ESI is required to be deducted . Accordingly, the minimum wages, ESI and PF of past employees of ` 288.51 lakh, ` 8.06 lakh and ` 69.25 lakh respectively has not been recorded in books of account. Further, Company has also not accounted for the PF contribution of ` 65.33 lakh and ESI contribution of ` 12.88 lakh due on the wage arrears paid to the present employees during the year ended March 31, 2017. The status of this contingent liability remain unchanged as at reporting date i.e. March 31, 2020. II Irrevocable letter of credit (net of margin) outstanding with banks III Bank Guarantee given to government authorities IV Counter Guarantees given by the Company to the Sales Tax Department over which Key Managerial Personnel have Significant influence - - For enterprise For others 953.56 38.08 1.00 0.50 5,701.06 34.20 1.00 0.50 V The Company has given the corporate guarantees to banks on behalf of its foreign subsidiaries (Refer Note No. 44 & 47) VI The Company is in the process of evaluating the impact of the recent Supreme Court Judgment in case of “Vivekananda Vidyamandir and Others Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular 228 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 No. C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of “basic wages” of the relevant employees for the purposes of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. Since there are numerous interpretative issues relating to the judgement, the management has concluded to update provision in books of accounts on receiving further clarity on the subject. bbbbb))))) CoCoCoCoCommmmmmmmmmitititititmememememennnnntttttsssss Capital Commitment: Estimated amount of contracts remaining to be executed on the capital account (net of capital advances) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 198.72 99.44 The Company does not have any other long term Commitments or material non cancellable contractual commitments, which may have a material impact on the standalone financial statement. E 47 : RELLLLLAAAAATTTTTEEEEED PD PD PD PD PAAAAARRRRRTTTTTY TY TY TY TY TRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOONSNSNSNSNS E 47 : RE E 47 : RE NONONONONOTTTTTE 47 : RE E 47 : RE t of relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies t of r t of r a)a)a)a)a) LLLLLisisisisist of r t of r e of Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp e of R e of R NNNNNaaaaatttttuuuuurrrrre of R e of R ic (Dirrrrreeeeect)ct)ct)ct)ct) ic (Di ic (Di ct / Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct) DDDDDooooomesmesmesmesmestttttic (Di ct / I ct / I y (Dirrrrreeeeect / I y (Di y (Di ubsidiaiaiaiaiarrrrry (Di ubsid ubsid SSSSSubsid ic (Di ct / I y (Di ubsid me of the Rhe Rhe Rhe Rhe Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy me of t me of t NNNNNaaaaame of t me of t Pearl Apparel Fashions Limited (Formerly known as Lerros Fashions India Limited) Pearl Global Kaushal Vikas Limited (Formerly known as Pixel Industries Limited) SBUYS E-Commerce Limited (w.e.f. 20.09.2019) s (Dirrrrreeeeect)ct)ct)ct)ct) s (Di s (Di rsea rsea OOOOOvvvvveeeeersea rseas (Di s (Di rsea Pearl Global Fareast Limited Pearl Global (HK) Limited Norp Knit Industries Limited rseas (Is (Is (Is (Is (Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct) rsea rsea OOOOOvvvvveeeeersea rsea A & B Investment Limited Pearl Global F.Z.E. DSSP Global Limited Pearl Global Vietnam Company Limited Pearl Global(Chang Zhou) Textile Technology Company Limted Pearl Grass Creations Limited (Formerly known as Pearl Tiger HK Limited) PGIC Investment Limited Prudent Fashions Limited PT Pinnacle Apparels (Formerly known as PT Norwest Industry) Vin Pearl Global Vietnam Limited EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov ise ov ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich Keeeeeyyyyy DDDDDooooomesmesmesmesmesttttticicicicic ise ov MMMMMaaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Creative Arts Education Society exexexexexeeeeerrrrrcise Sig cise Sig cise Sig cise Signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee Little People Education Society cise Sig Nim International Commerce LLP PDS Multinational Fashions Limited Pearl Global Industries Limited Annual Report 2019-20 229 Notes to standalone financial statements for the year ended March 31, 2020 Pearl Wears PS Arts Private Limited PSS Estates LLP Vau Apparels LLP OOOOOvvvvveeeeersea rseasssss rsea rsearsea 360 Notch Ltd (Formely known as Poeticgem Australia Ltd) Blueprint Design Limited Casa Forma Limited Clover Collection Limited Formerly DS Manufacturing Limited; Designed and Sourced Limited) Clover Collections FZCO (w.e.f. 20.02.2020) Design Arc Asia Limited [(Formerly Design Arc. Limited) (Design Arc. Limited Formerly Nor France Manufacturing Company Ltd)] Design Arc Europe Limited (Formerly Nor Europe Manufacturing Limited Design Arc FZCO (W.e.f 17.01.2019) Design Arc UK Limited Digital Ecom Techno Private Limited Digital Internet Technologies Limited Fabric & Trims Limited Fareast Vogue Limited Funky Brands Company Limited (Formerly Fullhouse Manufacturing Limited; Nor Delhi Manufacturing Limited FX Import Company Limited FX Import Hongkong Limited Global Textiles Group Limited Green Apparel Industries Ltd Green Smart Shirts Limited Grupo Extremo SUR S.A Grupo Sourcing Limited (Bangladesh) Grupo Sourcing Limited (Hongkong) Jcraft Array Limited (w.e.f. 12.04.2018) JJ Star Industrial Limited JSM Trading (FZE.) KIK Service Unit Limited (w.e.f. 22.10.2019) Kindred Brands Ltd (Formerly NW Far-east Limited) Kindred Fashion Limited (w.e.f. 23.10.2018) Kleider Sourcing FZCO (w.e.f 17.01.2019) Kleider Sourcing Hongkong Limited Kleider Sourcing Limited Krayon Sourcing Limited (Formerly Souring Solutions HK Limited) Lilly and Sid Ltd (w.e.f. 10.03.2020) 230 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 Multinational OSG Services Bangladesh Limited Multinational Textile Group Limited MultiTech Venture Ltd(Mauritius) Nor Europe SPA Nor India Manufacturing Company Limited Nor Lanka Manufacturing Colombo Limited Nor Lanka Manufacturing Limited Norlanka Progress Pvt.Ltd Norwest Industries Limited Pacific Logistics Limited Parc Designs Pvt. Limited (Closed on 30.09.2019) PDS Far-east Limited PDS Asia Star Corporation Limited PDS Far East USA Inc. PDS Global Investments Limited PDS Trading (Shanghai) Company Limited PDS Ventures Limited (w.e.f. 03.07.2018) PG Group Limited PG Home Group Limited PG Home Group SPA (Formerly Pearl GES Home Group SPA) PG Shanghai Mfg Company Limited Poetic Brands Limited Poetic Knitwear Limited Poeticgem International Limited Poeticgem Limited Progress Apparels(Bangladesh) Ltd Progress Manufacturing Group Ltd Razamtazz Limited Recovered Clothing Limited (w.e.f 24.07.2018) Redwood Internet Ventures Limited Rising Asia Star Hongkong Limited (Formerly Techno Manufacturing Limited) SACB Holdings Limited Simple Approach (Canada) Limited Simple Approach Limited Smart Notch Industrial Limited Smart Notch Limited (w.e.f. 20.04.2018) Sourcing East West Limited Sourcing Solutions Limited Sourcing Solutions Limited Spring Near East FZCO (w.e.f. 17.01.2019) Spring Near East Manufacturing Company Limited Pearl Global Industries Limited Annual Report 2019-20 231 Notes to standalone financial statements for the year ended March 31, 2020 Styleberry Limited Superb Mind Holdings Limited Techno Design Gmbh Techno Design HK Limited (Formerly DPOD Manufacturing Limited Technocian Fashion Private Limited (w.e.f. 20.03.2019) Transnational Textile Group Limited Twin Asia FZCO (w.e.f. 17.01.2019) Twin Asia Limited Zamira Denim Lab Limited Zamira Fashion Limited Zamira Fashion Limited Zhongshan KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Mr. Deepak Seth P) & theiheiheiheiheir rr rr rr rr relelelelelaaaaatttttiviviviviveeeee P) & t P) & t (K(K(K(K(KMMMMMP) & t P) & t Chariman Mr. Pulkit Seth Vice Chairman & Managing Director Mrs. Shifalli Seth Whole-Time Director Whole-Time Director Mr. Vinod Vaish (till 30.04.2020) Mr.Kashmir Singh Rathour (from 28.07.2020) Chief Financial Officer Chief Financial Officer Mr. Raghav Garg (till 30.06.2020) Company Secretary Mr. Sandeep Sabharwal Independent Director Mr. Chittranjan Dua Independent Director Mr. Rajendra Kumar Aneja Independent Director Mr. Anil Nayar Independent Director Mr. Abhishek Goyal Mrs. Madhulika Bhupatkar (from 18-03-2020) Independent Director sactioioioioionnnnnsssss::::: sact sact e of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttties Ties Ties Ties Ties Trrrrraaaaannnnnsact e of R e of R Disclosuuuuurrrrre of R Disclos Disclos B.B.B.B.B. Disclos sact e of R Disclos y Coy Commmmmpppppaaaaannnnniesiesiesiesies y Coy Co ubsidiaiaiaiaiarrrrry Co ubsid (((((iiiii))))) SSSSSubsid ubsid ubsid PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Purchase of goods Sale of goods - raw material Sale of goods – readymade garments Source support income Income on corporate guarantee Expenses paid on behalf of the Company Expenses paid by the Company on other’s behalf SAP income Investment in equity shares Interest income Impairment of investment in subsidiaries (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 11,879.70 644.47 10,504.32 1,019.36 138.40 52.39 47.90 98.11 1.00 30.11 27.24 14,606.50 249.19 4,199.04 - 161.31 1,273.99 1,298.37 92.02 - 29.68 1,438.36 Corporate Guarantee given by the Company (as per Section 186(4) of the Companies Act 2013) ••••• To Standard Chartered Bank, Hongkong Branch for securing credit facilities to its wholly owned subsidiary 232 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 ••••• ••••• Pearl Global (HK) Limited, Hong Kong for USD 120.00 lakh equivalent to ` 9,046.80 lakh (March 31, 2019 USD 120.00 lakh equivalent to ` 7,800.04 lakh) To HSBC Bank, Hongkong Branch for securing credit facilities to its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong for USD 200.00 lakh equivalent to `15,078.00 lakh (March 31, 2019: Nil) To Standard Chartered Bank, Bangladesh Branch for securing credit facilities to its subsidiary Norp Knit Industries Limited, Bangladesh for BDT 9,000.00 lakh equivalent to ` 7,967.43 lakh (March 31, 2019 : BDT 9,000 lakh equivalent to ` 7,389.08 lakh). Above Corporate Guarantees have been given for business purpose. losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi losi CCCCClosi losi PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Loan given to subsidiary (inclusive of interest) Trade Receivable Trade Payable Advance Receivable (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 638.33 2,125.58 1,037.89 92.93 555.94 2,669.24 2,719.16 95.64 s Signnnnnificificificificificaaaaannnnnt It It It It Innnnnflflflflflueueueueuencncncncnceeeee s Sig s Sig ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich KMMMMMP hP hP hP hP haaaaas Sig ise ov ise ov (ii) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov s Sig ise ov (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Expenses paid by the company on their behalf Expenses paid by them on behalf of the Company Interest income losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi losi CCCCClosi losi Amount receivable Loan receivable (including interest) (iii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnel (Knel (Knel (Knel (Knel (KMMMMMP)P)P)P)P) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Remuneration paid EPF paid Expenses incurred on behalf of the Company Directors sitting fees CCCCClosi losi losi losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi Trade Payable - Payable to KMP he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 3.00 30.00 0.61 4.37 30.00 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 306.71 4.29 306.66 (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 301.51 1.06 30.09 1.60 277.89 1.11 42.31 1.50 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 ch 31, 2019 0.92 16.85 Pearl Global Industries Limited Annual Report 2019-20 233 Notes to standalone financial statements for the year ended March 31, 2020 C. Disclosure of Material Transactions: Related Parties having more than 10% interest in each transaction in the ordinary course of business y Coy Commmmmpppppaaaaannnnniesiesiesiesies y Coy Co ubsidiaiaiaiaiarrrrry Co ubsid (i) SSSSSubsid ubsid ubsid PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs PPPPPuuuuurrrrrchchchchchaaaaase of g se of goooooooooodsdsdsdsds se of g se of g se of g Norp Knit Industries Limited Pearl Global Vietnam Co Ltd ds - raaaaaw mw mw mw mw maaaaattttteeeeerrrrriaiaiaiaialllll ds - r ds - r le of goooooooooods - r le of g le of g SSSSSaaaaale of g ds - r le of g Norp Knit Industries Limited Pearl Global Vietnam Co Ltd Pearl Apparel Fashions Limited eadymmmmmaaaaattttte ge ge ge ge gaaaaarrrrrmememememennnnntttttsssss eady eady ds - r ds - r le of goooooooooods - r le of g le of g SSSSSaaaaale of g ds - ready eady ds - r le of g Pearl Global Far East Limited Pearl Global (HK) Limited DSSP Global Limited SSSSSououououourrrrrccccce se se se se suuuuuppppppppppooooorrrrrt it it it it incncncncncooooomememememe Pearl Global (HK) Limited IIIIIncncncncncooooome ome ome ome ome on cn cn cn cn cooooorprprprprpooooorrrrraaaaattttte ge ge ge ge guuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee Norp Knit Industries Limited Pearl Global (HK) Limited he Commmmmpppppaaaaannnnnyyyyy he Co he Co f of t f of t ses paaaaaid bid bid bid bid by ty ty ty ty thehehehehem om om om om on bn bn bn bn behehehehehaaaaalllllf of t ses p ses p ExExExExExpppppeeeeennnnnses p f of the Co he Co f of t ses p Norp Knit Industries Limited Pearl Global (HK) Limited he Commmmmpppppaaaaannnnny oy oy oy oy on tn tn tn tn theiheiheiheiheir br br br br behehehehehaaaaalllllfffff he Co he Co ses paaaaaid bid bid bid bid by ty ty ty ty the Co ses p ses p ExExExExExpppppeeeeennnnnses p he Co ses p Norp Knit Industries Limited Pearl Global (HK) Limited Pearl Grass Creations Ltd IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in en en en en eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses SBUYS E-Commerce Limited SSSSSAAAAAP iP iP iP iP incncncncncooooomememememe Pearl Global Far East Limited Pearl Global (HK) Limited Pearl Grass Creations Ltd Vin Pearl Global Vietnam Limited IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe Pearl Global Far East Limited IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of i t of i t of i t of innnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid ubsid ubsid ubsidiaiaiaiaiarrrrriesiesiesiesies t of i ubsid Pearl Apparel Fashions Limited (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 10,156.16 1,569.98 430.75 213.71 - - 10,108.19 395.28 1,019.36 49.02 89.38 14.22 37.84 15.84 0.14 29.06 1.00 36.33 50.81 10.98 - 30.11 27.24 14,023.75 - 202.16 - 47.03 608.67 2,328.32 1,262.05 - 76.18 85.13 820.44 453.55 27.35 1,184.86 52.08 - 33.10 48.58 1.77 8.57 29.68 1,438.36 234 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 s signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee s sig ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich KMMMMMP hP hP hP hP haaaaas sig s sig ise ov (ii) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov s sig ise ov (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ExExExExExpppppeeeeennnnnses p ses paaaaaid bid bid bid bid by ty ty ty ty the che che che che cooooommmmmpppppaaaaannnnny oy oy oy oy on tn tn tn tn theiheiheiheiheir br br br br behehehehehaaaaalllllfffff ses p ses p ses p Norwest Industries Limited ExExExExExpppppeeeeennnnnses p he Commmmmpppppaaaaannnnnyyyyy he Co he Co f of t ses paaaaaid oid oid oid oid on bn bn bn bn behehehehehaaaaalllllf of t f of t ses p ses p f of the Co he Co f of t ses p PDS Multinational Fashion Limited IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe PDS Multinational Fashion Limited (iii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 3.00 30.00 0.61 4.37 30.00 (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion pn pn pn pn paaaaaididididid Mr.Pulkit Seth Mrs. Shifalli Seth Mr. Rajkumar Chawla Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg EEEEEPPPPPF pF pF pF pF paaaaaididididid Mr.Pulkit Seth Mrs. Shifalli Seth Mr. Rajkumar Chawla Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg ExExExExExpppppeeeeennnnnses i he Commmmmpppppaaaaannnnnyyyyy he Co he Co f of t ses incuncuncuncuncurrrrrrrrrreeeeed od od od od on bn bn bn bn behehehehehaaaaalllllf of t f of t ses i ses i f of the Co he Co f of t ses i Mr. Raj Kumar Chawla Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg rs sittttttiiiiinnnnng Fg Fg Fg Fg Feeeeeeseseseses::::: rs sit DiDiDiDiDirrrrreeeeectctctctctooooors sit rs sit rs sit Mr. Deepak Seth Mr. Anil Nayar Mr. Chittranjan Dua Mr. Abhishek Goyal Mr. Rajendra Aneja 165.00 68.75 - 16.44 16.04 35.28 0.20 0.20 - 0.22 0.22 0.22 - 16.38 4.46 9.25 0.20 0.50 0.30 0.50 0.10 120.00 75.00 44.88 16.44 15.63 5.94 0.22 0.22 0.18 0.22 0.22 0.05 22.60 12.34 6.35 1.02 0.10 0.40 0.40 0.50 0.10 VI) TTTTTeeeeerrrrrmmmmms as as as as and cnd cnd cnd cnd cooooondndndndnditititititioioioioionnnnns of t s of t s of t s of trrrrraaaaannnnnsact sact sact sactioioioioionnnnns ws ws ws ws wititititith rh rh rh rh relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies s of t sact All the transaction with the related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year end are unsecured and interest free except the interest bearing loan and settlement occurs in cash. Pearl Global Industries Limited Annual Report 2019-20 235 Notes to standalone financial statements for the year ended March 31, 2020 VII) The remuneration of Key managerial Personnel does not include amount in repect of gratuity and leave encashment payable as the same are not determinable as individual basis for the KMP. The liabilities of gratuity and leave encashment are provided for Company as whole on the basis of acturial valuation. E 48 : DISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEES PS PS PS PS PUUUUURRRRRSSSSSUUUUUAAAAANNNNNT TT TT TT TT TO SO SO SO SO SECUECUECUECUECURRRRRIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND ED ED ED ED EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGE BE BE BE BE BOOOOOAAAAARRRRRD OD OD OD OD OF IF IF IF IF INNNNNDDDDDIIIIIA (LA (LA (LA (LA (LIIIIISSSSSTTTTTIIIIINNNNNGGGGG E 48 : DI NONONONONOTTTTTE 48 : DI E 48 : DI E 48 : DI OOOOOBBBBBLLLLLIIIIIGGGGGAAAAATTTTTIIIIIOOOOONS ANS ANS ANS ANS ANNNNND DD DD DD DD DIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRRE RE RE RE RE REQEQEQEQEQUUUUUIIIIIRRRRREEEEEMMMMMEEEEENNNNNTS) RTS) RTS) RTS) RTS) REGEGEGEGEGUUUUULLLLLAAAAATTTTTIIIIIOOOOONSNSNSNSNS, 2015 A N 186 OF TF TF TF TF THHHHHEEEEE N 186 O , 2015 ANNNNND SD SD SD SD SECECECECECTTTTTIIIIIOOOOON 186 O N 186 O , 2015 A , 2015 A N 186 O , 2015 A COCOCOCOCOMMMMMPPPPPAAAAANNNNNIIIIIEEEEES ACS ACS ACS ACS ACTTTTT, 2013. , 2013. , 2013. , 2013. , 2013. ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid (a) LLLLLoooooaaaaannnnns ts ts ts ts to so so so so subsid ubsid ubsid l Globbbbbaaaaal Fl Fl Fl Fl Faaaaarrrrreaeaeaeaeassssst Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd l Glo l Glo ubsidiaiaiaiaiarrrrryyyyy: P: P: P: P: Peaeaeaeaearrrrrl Glo ubsid ubsid LLLLLoooooaaaaan tn tn tn tn to wo wo wo wo whohohohoholllllly oly oly oly oly owwwwwnenenenened sd sd sd sd subsid l Glo ubsid Principal Balance as at the year end Maximum amount outstading at any time during the year (Pearl Global Fareast Limited has utilised the loan for meeting operating and working capital requirements. It is repayable after March 31, 2020 and carries an average rate of interest at 6.5% (2018-19: 6.5%) (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 497.57 497.57 456.52 456.52 (b) Investments made are given under the respective heads (Refer Note No. 8) (c) Corporate guarantees given are disclosed in Note 47. 11,728.05 32,092.23 11,726.14 15,189.12 E 49 : EVEEEEENNNNNT OT OT OT OT OCCCCCCUCUCUCUCURRRRRIIIIINNNNNG AG AG AG AG AFFFFFTTTTTEEEEER BR BR BR BR BAAAAALLLLLAAAAANNNNNCCCCCE SE SE SE SE SHHHHHEEEEEEEEEET DT DT DT DT DAAAAATTTTTEEEEE E 49 : EV E 49 : EV NONONONONOTTTTTE 49 : EV E 49 : EV id aid and Pnd Pnd Pnd Pnd Prrrrroooooppppposeoseoseoseoseddddd::::: id aid a (a)(a)(a)(a)(a) DivDivDivDivDivideideideideidend pnd pnd pnd pnd paaaaaid a PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs he yearrrrr::::: he yea he yea (((((iiiii))))) DDDDDeeeeeclclclclclaaaaarrrrreeeeed ad ad ad ad and pnd pnd pnd pnd paaaaaid did did did did duuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea Final dividend for the year 2018-19: ` 3.00 per share (2017-18: ` 2.00 per share) including dividend distribution tax of ` 133.68 lakh for the financial year 2018-19 ( ` 89.06 lakh for the financial year 2017-18) (((((iiiiiiiiii))))) PPPPPrrrrroooooppppposeoseoseoseosed fod fod fod fod for ar ar ar ar apppppppppprrrrrovovovovovaaaaal al al al al at tt tt tt tt the Ahe Ahe Ahe Ahe Annnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg s a liabiabiabiabiabilililililititititity)y)y)y)y) s a l (not reeeeecccccooooogggggnnnnniseiseiseiseised ad ad ad ad as a l s a l (not r (not r s a l (not r (not r Final dividend for the year 2019-20: Nil per share (2018-19: ` 3.00 per share) Dividend Distribution Tax (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 783.56 522.34 - - 649.88 133.68 (((((bbbbb))))) In March 2020, the World Health Organisation declared COVID 19 to be a pandemic. Consequent to this, Government of India declared a national lockdown on 25 March 2020, which has impacted the business activities of the Industry and accordingly the Company has also assessed the impact that may result from this pandemic on its liquidity position, carrying amounts of receivables, tangible and intangible assets and other assets / liabilities. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has considered internal and external information available till the date of approval of these financial statements and has assessed its situation. In that context and based on the current estimates, the Company believes that COVID 19 is not likely to have any material impact on its financial statements, liquidity or ability to service its debt or other obligations. However, the overall economic environment, being uncertain due to COVID 19, may affect the underlying assumptions and estimates in future, which may 236 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 differ from those considered as at the date of approval of these financial statements. The Company would closely monitor such developments in future economic conditions and consider their impact on the financial statements of the relevant periods. (((((ccccc))))) No other material events have occurred between the balance sheet date to the date of issue of these financial statements that could affect the values stated in the financial statements. E 50 : LEAAAAASSSSSEEEEESSSSS E 50 : LE NONONONONOTTTTTE 50 : LE E 50 : LE E 50 : LE Until March 31, 2019, the Company recognized leases in accordance with Ind AS 17. A lease was defined as an agreement whereby the lessor conveys to the lessee in return for a series of payments the right to use an asset for an agreed period of time. The lessor and lessee accounted for the lease on the basis of the distribution of the risks and rewards associated with the leased asset. Insofar as all the substantial risks and rewards were transferred to the Company as lessee, the respective leased assets were capitalized at fair value or the lower present value of the minimum lease payments and depreciated using the straight-line method on the basis of the useful life of the underlying asset or the lease term, if this was shorter. The payment obligations resulting from future lease payments were discounted and recognized as a liability. Where the Company was the lessee in operating leases, in other words, if not all material risks and rewards were transferred, the lease or rental payments were recognized directly as expenses in the statement of Profit and Loss. Since April 1, 2019, the Company has recognized leases in accordance with Ind AS 116. This defines a lease as a contract, or part of a contract, whereby the lessor conveys to the lessee the right to use an asset for an agreed period of time in exchange for consideration. se of prrrrractactactactacticicicicicaaaaal exl exl exl exl expppppeeeeedddddieieieieiennnnntttttsssss se of p ach and und und und und use of p se of p ach a TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion an an an an apppppppppprrrrroooooach a ach a se of p ach a Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees. The Company has adopted Ind AS 116, effective annual reporting period beginning April 1, 2019 and has applied the standard to its leases, retrospectively, with the cumulative effect of initially applying the standard, recognised on the date of initial application (April 1, 2019). Accordingly, the Company has not restated comparative information, instead, the cumulative effect of initially applying this standard has been recognised as an adjustment to the opening balance of retained earnings as on April 1, 2019. s a lesseseseseseeeeee s a les CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les s a les s a les On transition, the Company recognised a lease liability measured at the present value of the remaining lease payments. The right-of-use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but discounted using the lessee’s incremental borrowing rate as at April 1, 2019. Accordingly, a right-of-use asset of ` 2,908.47 lakh and a corresponding lease liability of ` 3,201.46 lakh has been recognized. The cumulative effect on transition in retained earnings is `190.61 lakh (net of deferred tax of `102.38 lakh) (for detail please refer note below). The principal portion of the lease payments have been disclosed under cash flow from financing activities. The lease payments for operating leases as per Ind AS 17 Leases, were earlier reported under cash flow from operating activities. The weighted average incremental borrowing rate has been applied to lease liabilities recognised in the balance sheet at the date of initial application. On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-of-use asset, and finance cost for interest accrued on lease liability. Some practical expedients permitted by the standard are used, notably: • To not reassess upon transition whether an existing contract contains a lease. The definition of a lease under Ind AS 116 has been applied only to contracts entered into or changed on or after April 01, 2019. Pearl Global Industries Limited Annual Report 2019-20 237 Notes to standalone financial statements for the year ended March 31, 2020 • • • For transition, the Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of transition by class of asset The recognition exemptions for short-term leases and leases of low-value assets. To apply Ind AS 37 for onerous leases instead of performing an impairment review. Presentational changes: As a result of implementing Ind AS 116, the Company has made a some presentational changes in 2019- 2020, notably to present ‘Right-of-use assets’ as a separate line item in the balance sheet and to include lease liabilities in other current and non-current liabilities. e sheetetetetet e she e she S 116 on cn cn cn cn cooooommmmmpppppaaaaannnnnyyyyy’’’’’s bs bs bs bs baaaaalllllaaaaancncncncnce she S 116 o S 116 o act of Ind And And And And AS 116 o act of I act of I TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion in in in in immmmmpppppact of I e she S 116 o act of I PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Right-of-use assets Non Current Assets Current Assets l Assetsetsetsetsetsssss l As l As TTTTTotototototaaaaal As l As Equity Share Capital Other Equity Deferred Tax Liabilities (Net) Lease Liabilities Non Current Liabilities Current Liabilities TTTTTotototototaaaaal Eql Eql Eql Eql Equuuuuititititity ay ay ay ay and Lnd Lnd Lnd Lnd Liabiabiabiabiabilililililitititititiesiesiesiesies As aAs aAs aAs aAs attttt ch 31, 2019 ch 31, 2019 MMMMMaaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 - 34,720.35 34,165.46 68,885.81 68,885.81 68,885.81 68,885.81 68,885.81 2,166.39 29,452.08 340.46 - 7,194.19 29,732.69 68,885.81 68,885.81 68,885.81 68,885.81 68,885.81 AAAAApppppppppplllllicicicicicaaaaatttttioioioioionnnnn S 116 S 116 of Iof Iof Iof Iof Ind And And And And AS 116 S 116 S 116 2,908.47 - - 2,908.47 2,908.47 2,908.47 2,908.47 2,908.47 ----- (190.61) (102.38) 3,201.46 - - 2,908.47 2,908.47 2,908.47 2,908.47 2,908.47 d As Attttt d As A d As A RRRRReeeeevvvvviseiseiseiseised As A d As A il 01, 2019 il 01, 2019 AAAAAppppprrrrril 01, 2019 il 01, 2019 il 01, 2019 2,908.47 34,720.35 34,165.46 71,794.28 71,794.28 71,794.28 71,794.28 71,794.28 2,166.39 29,261.47 238.08 3,201.46 7,194.19 29,732.69 71,794.28 71,794.28 71,794.28 71,794.28 71,794.28 The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported as at March 31, 2019 compared to the lease liability as accounted as at April 1, 2019 is primarily due to inclusion of present value of the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per the requirement of Ind AS 116 and exclusion of the commitments for the leases to which the Company has chosen to apply the practical expedient as per the standard. Lease contracts entered by the Company majorly pertains for buildings taken on lease to conduct its business in the ordinary course. The Company does not have any lease restrictions and commitment towards variable rent as per the contract. RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss: mov ue of assssssetsetsetsetsetsssss ue of a : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of a ue of a : mov : mov ue of a : mov ck ack as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019 ch 31, 2019 ch 31, 2019 ck ack a GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a ch 31, 2019 ch 31, 2019 Cumulative catch-up for previously reported operating leases on implementation of IND AS 116 GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a ck ack as as as as as at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 2019 ck ack a il 01, 2019 il 01, 2019 Add: Additions during the year Less: Disposals / adjustments during the year ck As at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock As a ch 31, 2020 ch 31, 2020 ck As a ck As a ch 31, 2020 ch 31, 2020 ck As a AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed Dd Dd Dd Dd Deeeeeppppprrrrricia iciaiciatttttioioioioion :n :n :n :n : iciaicia As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 Add: Depreciation charge for the year Less: Disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ck :ck : ck :ck : NNNNNet Bet Bet Bet Bet Blololololock : As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 In 2019-20, there were no impairment charges recorded for right-of-use assets. BBBBBuuuuuildildildildildiiiiinnnnngggggsssss ----- 2,908.47 2,908.47 56.58 - 2,965.05 2,965.05 2,965.05 2,965.05 2,965.05 - 350.70 - 350.70 350.70 350.70 350.70 350.70 2,614.35 2,614.35 2,614.35 2,614.35 2,614.35 238 Pearl Global Industries Limited Annual Report 2019-20 Notes to standalone financial statements for the year ended March 31, 2020 ue of reeeeecccccooooogggggnnnnniseiseiseiseised ld ld ld ld liabiabiabiabiabilililililitititititiesiesiesiesies ue of r : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of r ue of r : mov LLLLLeaeaeaeaeasessessessesses: mov : mov ue of r : mov As At April 01, 2019 Cumulative catch-up for previously reported operating leases on implementation of Ind AS 116 As AAs AAs AAs AAs At At At At At Appppprrrrril 01, 2019 (R il 01, 2019 (Reeeeevvvvviseiseiseiseiseddddd))))) il 01, 2019 (R il 01, 2019 (R il 01, 2019 (R Add: Additions during the year Interest expense on lease liabilities Repayment of lease liabilities As AAs AAs AAs AAs At Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 Non-current lease liabilities Current lease liabilities se liabiabiabiabiabilililililitititititiesiesiesiesies se l se l l lea l lea TTTTTotototototaaaaal lea l lease l se l l lea - 3,201.46 3,201.46 3,201.46 3,201.46 3,201.46 3,201.46 56.59 300.01 508.28 3,049.77 3,049.77 3,049.77 3,049.77 3,049.77 2,813.37 236.41 3,049.77 3,049.77 3,049.77 3,049.77 3,049.77 The maturity analysis of lease liabilities is given in Note 44 in the ‘Liquidity risk’ section. Cash flows from operating activities includes cash flow from short term lease & leases of low value. Cash flow from financing activities includes the payment of interest and the principal portion of lease liabilities. Leases committed and not yet commenced: There are no leases commited which have not yet commenced as on reporting date. CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a Ls a Ls a Ls a Ls a Lesesesesessososososorrrrr The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a lessor. The Company accounted for its leases in accordance with Ind AS 116 from the date of initial application. The Company does not have any significant impact on account of sub-lease on the application of this standard. The Company has given its building space, lying under property, plant and equipments, on operating lease through operating lease arrangements. Income from operating leases is recognised as revenue on a straight-line basis over the lease term.Lease income of ` 980.53 Lakh (March 31, 2019: ` 814.53 Lakh) has been recognised and included under Other Income. (Refer Note No. 28) E 51 : E 51 : NONONONONOTTTTTE 51 : E 51 : E 51 : Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Company is required to use specified methods for computing arm’s length price in relation to specified international transactions with its associated enterprises. Further, the Company is required to maintain prescribed information and documents in relation to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed.The Company is in the process of updating its transfer pricing documentation for the current financial year. Based on the preliminary assessment, the management is of the view that the update would not have a material impact on the tax expense recorded in these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any. NONONONONOTTTTTE 52 : E 52 : E 52 : E 52 : E 52 : The balances of trade receivables, trade payables, financials assets and other assets given are subject to reconciliation and confirmation as on March 31, 2020 and have realisation in ordinary course of business atleast equal to amount at which they are stated in the financial statements. NONONONONOTTTTTE 53 : E 53 : E 53 : E 53 : E 53 : Figures have been rounded off to the nearest lakhs upto two decimal places except otherwise stated. Place of Signature: Gurugram Date: July 28, 2020 ies Lies Liiiiimmmmmitititititeeeeeddddd ies Lies L l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries L l Glo rs of Peaeaeaeaearrrrrl Glo l Glo rs of P d of Dirrrrreeeeectctctctctooooors of P rs of P d of Di f of Boooooaaaaarrrrrd of Di d of Di f of B r & on bn bn bn bn behehehehehaaaaalllllf of B f of B r & o FFFFFooooor & o r & o l Glo rs of P d of Di f of B r & o (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r) r Si r Si (Ka(Kashshshshshmmmmmiiiiir Si (Ka(Ka r Si (Ka Chief Financial Officer (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll))))) Company Secretary M. No. ACS - 8370 Pearl Global Industries Limited Annual Report 2019-20 239 Notes .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. 240 Pearl Global Industries Limited Annual Report 2019-20 Notes .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. (cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:71)(cid:108)(cid:111)(cid:98)(cid:97)(cid:108)(cid:32)(cid:73)(cid:110)(cid:100)(cid:117)(cid:115)(cid:116)(cid:114)(cid:105)(cid:101)(cid:115)(cid:32)(cid:76)(cid:105)(cid:109)(cid:105)(cid:116)(cid:101)(cid:100) (cid:82)(cid:101)(cid:103)(cid:105)(cid:115)(cid:116)(cid:101)(cid:114)(cid:101)(cid:100)(cid:32)(cid:79)(cid:102)(cid:102)(cid:105)(cid:99)(cid:101) (cid:34)(cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:72)(cid:111)(cid:117)(cid:115)(cid:101)(cid:34) (cid:65)(cid:45)(cid:51)(cid:44)(cid:32)(cid:67)(cid:111)(cid:109)(cid:109)(cid:117)(cid:110)(cid:105)(cid:116)(cid:121)(cid:32)(cid:67)(cid:101)(cid:110)(cid:116)(cid:114)(cid:101) (cid:78)(cid:97)(cid:114)(cid:97)(cid:105)(cid:110)(cid:97)(cid:32)(cid:73)(cid:110)(cid:100)(cid:117)(cid:115)(cid:116)(cid:114)(cid:105)(cid:97)(cid:108)(cid:32)(cid:65)(cid:114)(cid:101)(cid:97)(cid:44)(cid:32)(cid:80)(cid:104)(cid:97)(cid:115)(cid:101)(cid:45)(cid:73)(cid:73) (cid:78)(cid:101)(cid:119)(cid:32)(cid:68)(cid:101)(cid:108)(cid:104)(cid:105)(cid:32)(cid:45)(cid:32)(cid:49)(cid:49)(cid:48)(cid:48)(cid:50)(cid:56) (cid:67)(cid:73)(cid:78)(cid:58)(cid:32)(cid:76)(cid:55)(cid:52)(cid:56)(cid:57)(cid:57)(cid:68)(cid:76)(cid:49)(cid:57)(cid:56)(cid:57)(cid:80)(cid:76)(cid:67)(cid:48)(cid:51)(cid:54)(cid:56)(cid:52)(cid:57) (cid:67)(cid:111)(cid:114)(cid:112)(cid:111)(cid:114)(cid:97)(cid:116)(cid:101)(cid:32)(cid:79)(cid:102)(cid:102)(cid:105)(cid:99)(cid:101) (cid:34)(cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:84)(cid:111)(cid:119)(cid:101)(cid:114)(cid:34) (cid:80)(cid:108)(cid:111)(cid:116)(cid:32)(cid:78)(cid:111)(cid:46)(cid:32)(cid:53)(cid:49)(cid:44)(cid:32)(cid:83)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114)(cid:45)(cid:51)(cid:50)(cid:44) (cid:71)(cid:117)(cid:114)(cid:117)(cid:103)(cid:114)(cid:97)(cid:109)(cid:45)(cid:49)(cid:50)(cid:50)(cid:48)(cid:48)(cid:49) (cid:40)(cid:72)(cid:97)(cid:114)(cid:121)(cid:97)(cid:110)(cid:97)(cid:41) 

Continue reading text version or see original annual report in PDF format above