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(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.
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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.
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MMMMMrrrrr. Sh. Sh. Sh. Sh. Shaaaaailesh K
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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
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r Ka
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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:::::
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. 9:
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. 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:
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1. Norp Knit Industries Limited
Subsidiary
he Dirrrrreeeeectctctctctooooor or or or or orrrrr
he Di
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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
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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
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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...)
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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
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10.00
25.00
0.10
1.00
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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...)
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me of R
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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
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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)
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(B(B(B(B(Budududududggggget) P
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ub heads:::::
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on pn pn pn pn prrrrrojojojojojeeeeectctctctcts os os os os or pr pr pr pr prrrrrooooogggggrrrrraaaaammmmm pppppeeeeerrrrrioioioioioddddd
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heads
heads
(2) O(2) O(2) O(2) O(2) Ovvvvveeeeerrrrrheads
heads
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CCCCCuuuuummmmmuuuuulllllaaaaatttttiviviviviveeeee AAAAAmoumoumoumoumounnnnnt st st st st spppppeeeeennnnnttttt:::::
exexexexexpppppeeeeendndndndndititititituuuuurrrrreeeee DiDiDiDiDirrrrreeeeect oct oct oct oct or tr tr tr tr thhhhhrrrrrouououououggggghhhhh
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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
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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,
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CCCCCIIIIIN: L74899D
L1989PLLLLLC036849
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N: L74899D
N: L74899D
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N: L74899DL1989P
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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
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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
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place to the extent, in the manner and subject to the reporting
made hereinafter:
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and returns filed and there records maintained by PPPPPeaeaeaeaearrrrrlllll
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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:
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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
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e mee te te te te tiiiiinnnnnggggg s a
e me
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s Co
s Co
g of
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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
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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
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ies o
he Co
mmmmmaaaaannnnnuuuuufffff a c ta c ta c ta c ta c tuuuuurrrrriiiiinnnnnggggg , Ex
t tt trrrrrade of
ade of
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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
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. As i
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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
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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
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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
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S.S.S.S.S. NNNNNaaaaame ame ame ame ame and addr
s of the Co
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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
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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
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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
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g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of t
g of the yea
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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
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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
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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
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EdEdEdEdEducucucucucaaaaatttttioioioioionnnnnaaaaalllll
qqqqquuuuuaaaaalllllific
ificificaaaaatttttioioioioionnnnn
ificific
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n yea
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n yea
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RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn PPPPPrrrrreeeeevvvvviouiouiouiouiousssss
id (`))))) eeeeemmmmmppppplololololoyyyyymememememennnnnttttt
pppppaaaaaid (
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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
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n of Ex
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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
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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
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he Commmmmpppppaaaaannnnny foy foy foy foy for ur ur ur ur utttttilililililiziziziziziiiiinnnnng ag ag ag ag alllllttttteeeeerrrrrnnnnnaaaaattttte sou
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he Co
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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 :
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Not Applicable
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a Technology Imported
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C Has technology been fully absorbed?
d
If not fully absorbed, areas where this has not taken place, and the reasons.
ch & Deeeeevvvvveloeloeloeloelopppppmememememennnnnttttt:::::
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b) Recurring
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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
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me of Subsid
ubsid
me of S
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e of RRRRReeeeepppppooooorrrrrtttttiiiiinnnnnggggg RRRRReeeeepppppooooorrrrrtttttiiiiinnnnnggggg ExExExExExchchchchchaaaaannnnngggggeeeee
e of
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rrrrraaaaattttteeeee
isitioioioioionnnnn
isit
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PPPPPeeeeerrrrrioioioioioddddd
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EqEqEqEqEquuuuuititititityyyyy
ShShShShShaaaaarrrrreeeee & s& s& s& s& suuuuurprprprprpllllluuuuusssss
TTTTTotototototaaaaalllll
TTTTTotototototaaaaalllll
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LLLLLososososossssss
for
for
tttttaaaaaxaxaxaxaxatttttioioioioionnnnn
bbbbbefoefoefoefoeforrrrreeeee
tttttaaaaaxaxaxaxaxatttttioioioioionnnnn
% of% of% of% of% of
dddddivivivivivideideideideidendndndndnd shshshshshaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
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ofit /
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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
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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
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n 31.03.2020 a
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n 31.03.2020 a
s herrrrreueueueueundendendendenderrrrr:::::
s he
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s he
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me of Di
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side
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side
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. of
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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
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y is Di
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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
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rs of t
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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
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ies i
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ies i
me of l
NNNNNaaaaame of l
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y of Di
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r is a Dirrrrreeeeectctctctctooooorrrrr
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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
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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.
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r of Di
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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
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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
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n of Eq
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(a)(a)(a)(a)(a) DisDisDisDisDistttttrrrrribuibuibuibuibutttttioioioioion of Eq
ch 2020
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r of Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrres * held
es * held
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r of Eq
NNNNNuuuuumbmbmbmbmbeeeeer of Eq
r of Eq
es * held
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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
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ies of Sh
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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
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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
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ely i
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The Company has not issued any GDRs/ADRs/Warrants etc. till date.
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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)
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A-3, Community Centre, Naraina Industrial Area,
Phase-II, New Delhi - 110 028
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Pearl Tower, Plot No.51, Sector-32
Gurugram - 122 001, Haryana (India)
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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
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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:
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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
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15.89
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28.92
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28.92
28.92
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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
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Discretionary requirements are as follows:-
A.
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Presently, the Company is maintaining office of the Non-Executive Chairman.
B.
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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
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n(s) i
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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.
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E.
g of innnnnttttteeeeerrrrrnnnnnaaaaal al al al al audududududitititititooooorrrrr-The internal auditor reports to Audit Committee as and when required.
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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
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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
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se ac
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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
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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.
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India
Bangladesh
Bangladesh
Indonesia
Vietnam
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Pearl Global Vietnam
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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.
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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
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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.
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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.
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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
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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)
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07.03.2019 to 31.12.2019
01.01.2020 to 31.03.2021
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MEIS + RoSL
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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.
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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.
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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.
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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.
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r Commmmmpppppaaaaannnnnyyyyy’’’’’s Ps Ps Ps Ps Prrrrrooooogggggrrrrraaaaammmmmsssss;;;;;
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r Commmmmmmmmmuuuuunnnnnititititity ouy ouy ouy ouy our Co
r Co
r Co
r Co
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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
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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
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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
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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)
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g of a
ses shou
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ses shou
le 3: B
PPPPPrrrrriiiiincincincincincippppple 3: B
le 3: B
g of a
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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
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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.
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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.
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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
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ld do so i
ld do so i
, shou
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, shou
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le 7: Buuuuusisisisisinesnesnesnesnesses, w
le 7: B
le 7: B
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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
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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
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ses should e
le 9: B
ses shou
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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
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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
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(Ka(Kashshshshshmmmmmiiiiir Si
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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
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n Con Commmmmpppppaaaaannnnny (Dy (Dy (Dy (Dy (DDDDDD-----MMMMMMMMMM-----YYYYYYYYYYYYYYYYYYYY)))))
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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
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We have audited the accompanying consolidated financial statements of PPPPPeaeaeaeaearrrrrl Glo
l Glo
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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.
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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.
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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.
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(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.
-
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• 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.....
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n of u
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(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.
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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.
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• 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
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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.
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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.
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(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.
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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.
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Chartered Accountants,
Firm Registration Number 008352N
(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
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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
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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.
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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.
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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
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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
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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
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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
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(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
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(Ka(Kashshshshshmmmmmiiiiir Si
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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
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(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
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ofit/ (
ofit/ (
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VVVVVIIIII TTTTTaaaaax exx exx exx exx expppppeeeeennnnnsesesesese:::::
(a) Current tax
(b) Deferred tax
(c) Adjustment of tax relating to earlier years
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(((((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
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(Amount in ` Lakh, unless otherwise stated)
he year er er er er endendendendendeddddd
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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
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Chief Financial Officer
Place of Signature: Gurugram
Date: July 28, 2020
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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
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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
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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
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ofit b
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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
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(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
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Tax paid on dividend
Direct Tax paid (Net of Refunds)
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Exceptional items
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( 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
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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
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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
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sh Equuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C)
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Opening Balance of Cash and Cash Equivalents
sh Equuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote Ne Ne Ne Ne Nooooo. 17)
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Cash on hand
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-
on unpaid dividend account
sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote Ne Ne Ne Ne Nooooo. 17)
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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
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CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss
Firm’s Registration Number 008352N
(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
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Partner
Membership Number 073696
Place of Signature: New Delhi
Date: July 28, 2020
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Managing Director
DIN 00003044
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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
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NONONONONOTTTTTE 1: CO
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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:
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iiiiincncncncncooooorprprprprpooooorrrrraaaaatttttioioioioionnnnn
l activivivivivitititititiesiesiesiesies
l act
l act
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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
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E 2: BA
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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
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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
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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
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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.
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icies, C
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The term Material”, used in this Standard shall have the
same meaning as assigned to it in paragraph 7 of Ind AS 1.
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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.
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S 37 – Prrrrrovovovovovisioisioisioisioisionnnnns, Co
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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.
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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.
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S 103 – Buuuuusisisisisinesnesnesnesness Co
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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.
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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.
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AsAsAsAsAssssssuuuuummmmmptptptptptioioioioionnnnns as as as as and es
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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.
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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.
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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.
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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.
-
-
-
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Export Incentives under various schemes are
accounted in the year of export.
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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.
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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.
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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.
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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
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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.
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The Group does not capitalise costs to obtain a contract
because majorly the contracts have terms that do not
extend beyond one year.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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)
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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.
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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.
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A financial asset which is not classified in any of the above
categories are subsequently fair valued through profit or
loss.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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).
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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
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lealealealealeaseho
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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
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ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
he year er er er er endendendendendeddddd
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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
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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
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ies b
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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
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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)
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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
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(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)))))
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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)
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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
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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.
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a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of is
t year er er er er end :nd :nd :nd :nd :
t yea
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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
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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
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g morrrrre te te te te thhhhhaaaaan 5% sh
g mo
rs holdldldldldiiiiinnnnng mo
g mo
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ils of shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ho
rs ho
ils of sh
ils of sh
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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
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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
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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
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IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill not b
ofit and los
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Re-measurement gains/ (losses) on defined benefit plans
Income tax expense
nd lossssss
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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.
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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.
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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.
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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.
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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
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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)
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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.
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Interest cost
Service cost
Past Service cost
Benefits paid
Foreign currency translation reserve
Actuarial (gain) / loss on obligations
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ch 31, 2020
ch 31, 2020
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ch 31, 2020
ch 31, 2020
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ch 31, 2019
ch 31, 2019
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ch 31, 2019
ch 31, 2019
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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
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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
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2020
2020
2020
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Investment in equity instruments
Investment in mutual fund
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s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
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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
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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
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el 3)
el 3)
el 3)
-
-
-----
-----
-
-
-
-
-
-
-
-
-
-
-
-----
-----
-
-
-----
-
-----
-
-
-
-
-
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MMMMMaaaaarrrrrch 31,
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2020
2020
2020
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CosCosCosCosCosttttt
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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
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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)))))
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FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
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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
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2019
2019
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Investment in equity instruments
Mark to market forward contracts
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Investment in mutual fund
(B)
(B)
(B)
(B)
(B)
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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
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mmmmmaaaaarrrrrkkkkketetetetetsssss
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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
-----
-
-
-
-
-
-
-
-
-
-
-----
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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
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Borrowings
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Book overdraft
Unpaid dividend
Trade payables*
Interest accrued but not due on borrowings*
Creditors for capital expenditure*
Others
As AAs AAs AAs AAs Attttt
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ch 31,
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ch 31,
2019
2019
2019
2019
2019
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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
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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
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me of the Rhe Rhe Rhe Rhe Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy
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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
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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
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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
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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
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ses paaaaaid bid bid bid bid by ty ty ty ty the Gr
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Norwest Industries Limited
ExExExExExpppppeeeeennnnnses p
he Grouououououppppp
he Gr
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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
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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
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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
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ses incuncuncuncuncurrrrrrrrrreeeeed bd bd bd bd by hy hy hy hy hiiiiim om om om om on bn bn bn bn behehehehehaaaaalllllf of t
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Mr. Raj Kumar Chawla
Mr. Vinod Vaish
Mr. Sandeep Sabharwal
Mr. Raghav Garg
rs sittttttiiiiinnnnng Fg Fg Fg Fg Feeeeeeseseseses:::::
rs sit
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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
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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.
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. 2018-19
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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
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Pearl Global Industries Limited
ubsidiaiaiaiaiarrrrryyyyy:::::
ubsid
ubsid
SSSSSubsid
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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
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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
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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
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ubsidiaiaiaiaiarrrrryyyyy:::::
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Pearl Global Kausal Vikas Limited
Pearl Apparel Fashions Limited
SBUYS E-Commerce Limited
-
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Pearl Global Far East Limited
Pearl Global (HK) Limited
Foreign
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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.
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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.
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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.
•
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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.
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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
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: mov
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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)
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E 50 : EV
E 50 : EV
NONONONONOTTTTTE 50 : EV
E 50 : EV
id aid and pnd pnd pnd pnd prrrrroooooppppposeoseoseoseoseddddd:::::
id aid a
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PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs
he yearrrrr:::::
he yea
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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
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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
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rs of P
rs of P
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(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
Managing Director
DIN 00003044
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r Si
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(Ka(Kashshshshshmmmmmiiiiir Si
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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
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it of t
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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
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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
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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
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it addr
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it addr
it addr
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• 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
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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
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(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.
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it addr
HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr
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• 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.
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• 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.
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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.
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hose C
hose C
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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
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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
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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.
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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.
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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.
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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
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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
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8.26 A.Y 2015-16
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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
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Income Tax (Appeals)
Commissioner of
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- Assessing Officer
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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
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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
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We have audited the internal financial controls with reference to financial statements of Pearl Global Industries Limited
(“(“(“(“(“ttttthe Co
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for the year ended on that date.
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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.
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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.
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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.
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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.
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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.
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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
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I.
Investment in subsidiaries
Investment - others
Property, plant and equipment
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(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
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(a)
(b)
II.
Equity share capital
(c) Other current assets
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Financial liabilities
(a)
Borrowings
(i)
(ii)
Lease Liabilities
(iii) Others financial liabilities
Provisions
(b)
(c) Deferred tax liabilities (net)
(d) Other non current liabilities
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(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)
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Summary of Significant Accounting Policies
The accompanying notes form an integral part of these financial statements
As per our Report of even date attached
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a & Co.....
a & Co
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Firm’s Registration Number 008352N
(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
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k Agk Ag
Partner
Membership Number 073696
Place of Signature: New Delhi
Date: July 28, 2020
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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
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d of Di
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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
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r & o
f of B
d of Di
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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
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r & o
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d of Di
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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
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sh flows frws frws frws frws frooooom om om om om opppppeeeeerrrrraaaaatttttiiiiinnnnng act
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sh flo
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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
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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
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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
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sh flo
sh flo
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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
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sh flows frws frws frws frws frooooom fim fim fim fim finnnnnaaaaancincincincincinnnnng act
sh flo
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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
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sh i
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( C )
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( C )
( C )
( C )
sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C)
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Opening balance of cash and cash equivalents
sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote noe noe noe noe no. 17)
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Cash, Cheque/drafts on hand
With banks - Current account
With banks - Deposit account
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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
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a & Co
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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
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Managing Director
DIN 00003044
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r Si
(Ka(Kashshshshshmmmmmiiiiir Si
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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
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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
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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.
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The financial statements are presented in ` and all values are
rounded to the nearest lakhs upto two decimal places except
otherwise stated.
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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
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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
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The term-Material, used in this Standard shall have the
same meaning as assigned to it in paragraph 7 of Ind AS 1
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IIIIInd And And And And AS 10 – E
S 10 – E
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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
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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.
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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.
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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.
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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
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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.
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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)))))
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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.
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nd measssssuuuuurrrrreeeeemememememennnnnttttt
nd mea
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nd mea
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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
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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.
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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
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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.
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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
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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
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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
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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.
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) 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
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side
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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
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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.
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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)))))
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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.
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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.
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ses a
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ses a
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nd leases of lo
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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
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nefit
nefit
nefit
nefitsssss: All employee benefits
nefit
nefit
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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.
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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.
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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
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nefit
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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)
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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.
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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.
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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.
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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)
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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.
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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.
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A financial asset which is not classified in any of the
above categories are subsequently fair valued through
profit or loss.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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
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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.
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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).
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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).
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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.
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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.
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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.
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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.
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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.
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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
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NONONONONOTTTTTE 4 : PR
E 4 : PR
E 4 : PR
AAAAANNNNND EQD EQD EQD EQD EQUUUUUIIIIIPMPMPMPMPMEEEEENNNNNTTTTT
LaLaLaLaLandndndndnd-----
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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
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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
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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
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(b) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of i
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EEEEEssssstttttiiiiimmmmmaaaaatttttioioioioion of f
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(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
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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
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(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
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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
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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
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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
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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
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g mo
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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
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ies reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in tn tn tn tn the Bhe Bhe Bhe Bhe Baaaaalllllaaaaancncncncnce She
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ies r
s) / liabiabiabiabiabilililililititititities r
ies r
s) / l
et (assssssetsetsetsetsets) / l
s) / l
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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 :::::
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r sig
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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
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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)
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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
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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
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MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020
AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt
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r lossssss
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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
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Investment in equity instruments
Investment in mutual fund
TTTTTotototototaaaaal Al Al Al Al A
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s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
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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
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actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
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(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
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(L(L(L(L(Leeeeevvvvvel 2)
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SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
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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
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ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a
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SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
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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
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FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies mea
r Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooomememememe
r Co
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Derivative Financial Instruments
(((((AAAAA)))))
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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
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2019
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Investment in equity instruments
Mark to Market Forward Contracts
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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
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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
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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)
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Pearl Global (HK) Limited
Norp Knit Industries Limited
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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
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Creative Arts Education Society
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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
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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
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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
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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)
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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.
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Advance Receivable
(Amount in ` Lakh, unless otherwise stated)
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ch 31, 2020
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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
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Expenses incurred on behalf of the Company
Directors sitting fees
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ch 31, 2020
he year er er er er endendendendendeddddd
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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
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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)
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he yea
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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
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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
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Pearl Global Vietnam Co Ltd
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Pearl Global Far East Limited
Pearl Global (HK) Limited
DSSP Global Limited
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Norp Knit Industries Limited
Pearl Global (HK) Limited
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Pearl Global (HK) Limited
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Pearl Global (HK) Limited
Pearl Grass Creations Ltd
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SBUYS E-Commerce Limited
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Pearl Global Far East Limited
Pearl Global (HK) Limited
Pearl Grass Creations Ltd
Vin Pearl Global Vietnam Limited
IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe
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ch 31, 2019
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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
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3.00
30.00
0.61
4.37
30.00
(Amount in ` Lakh, unless otherwise stated)
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Mrs. Shifalli Seth
Mr. Rajkumar Chawla
Mr. Vinod Vaish
Mr. Sandeep Sabharwal
Mr. Raghav Garg
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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
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0.22
0.22
0.22
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16.38
4.46
9.25
0.20
0.50
0.30
0.50
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120.00
75.00
44.88
16.44
15.63
5.94
0.22
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12.34
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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.
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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
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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
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he yearrrrr:::::
he yea
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(((((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
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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
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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
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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.
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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
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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
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act of Ind And And And And AS 116 o
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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
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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.
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Cumulative catch-up for previously reported operating leases on implementation of IND AS 116
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Add: Additions during the year
Less: Disposals / adjustments during the year
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il 01, 2019
il 01, 2019
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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
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As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
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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
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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
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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
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Non-current lease liabilities
Current lease liabilities
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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
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(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
Managing Director
DIN 00003044
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r Si
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(Ka(Kashshshshshmmmmmiiiiir Si
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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
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240
Pearl Global Industries Limited Annual Report 2019-20
Notes
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(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)