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Pearl Global Limited

pg1 · ASX Industrials
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Industry Waste Management
Employees 10,000+
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FY2020 Annual Report · Pearl Global Limited
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(cid:78)(cid:101)(cid:119)(cid:32)(cid:68)(cid:101)(cid:108)(cid:104)(cid:105)(cid:45)(cid:49)(cid:49)(cid:48)(cid:48)(cid:50)(cid:56)

(cid:67)(cid:111)(cid:114)(cid:112)(cid:111)(cid:114)(cid:97)(cid:116)(cid:101)(cid:32)(cid:79)(cid:102)(cid:102)(cid:105)(cid:99)(cid:101)
(cid:34)(cid:80)(cid:101)(cid:97)(cid:114)(cid:108)(cid:32)(cid:84)(cid:111)(cid:119)(cid:101)(cid:114)(cid:34)
(cid:80)(cid:108)(cid:111)(cid:116)(cid:32)(cid:78)(cid:111)(cid:46)(cid:32)(cid:53)(cid:49)(cid:44)(cid:32)(cid:83)(cid:101)(cid:99)(cid:116)(cid:111)(cid:114)(cid:45)(cid:51)(cid:50)
(cid:71)(cid:117)(cid:114)(cid:117)(cid:103)(cid:114)(cid:97)(cid:109)(cid:45)(cid:49)(cid:50)(cid:50)(cid:48)(cid:48)(cid:49)(cid:40)(cid:72)(cid:97)(cid:114)(cid:121)(cid:97)(cid:110)(cid:97)(cid:41)

Pearl Global Industries Limited     Annual Report 2019-20

1

CONTENTS

t & Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttt
t & F
t & F
SSSSStttttaaaaatttttuuuuutttttooooorrrrry Ry Ry Ry Ry Reeeeepppppooooorrrrrt & F
t & F

Notice

Directors’ Report

Corporate Governance

Management Discussion and Analysis

Business Responsibility Report

CoCoCoCoConnnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancialslslslsls

Independent Auditors’ Report

Consolidated Balance Sheet

Consolidated Statement of Profit & Loss

Consolidated Cash Flow Statement

Notes

SSSSStttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancialslslslsls

Independent Auditors’ Report

Balance Sheet

Statement of Profit & Loss

Cash Flow Statement

Notes

02

21

55

70

75

85

94

95

97

99

164

174

175

177

179

2

Pearl Global Industries Limited     Annual Report 2019-20

Notice

PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD
Registered Office: A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi-110028
Corporate Office: Plot No.51, Sector-32, Gurugram-122001(Haryana)
Tel: 0124-4651000, Website: www.pearlglobal.com; e-mail: investor.pgil@pearlglobal.com
CIN: L74899DL1989PLC036849

NNNNNOOOOOTTTTTIIIIICCCCCE TE TE TE TE TO MO MO MO MO MEEEEEMMMMMBBBBBEEEEERRRRRSSSSS
Notice is hereby given that the 31st Annual General Meeting
of the Members of Pearl Global Industries Limited will be
held  on  Thursday,  November  26,  2020  at  11:30  A.M.
through  Video  Conferencing  ("VC")/other  Audio  Visual
Means  ("OAVM")  ("hereinafter  referred  to  as  "electronic
mode") to transact the following businesses:

OOOOORRRRRDDDDDIIIIINNNNNAAAAARRRRRY BY BY BY BY BUUUUUSSSSSIIIIINNNNNEEEEESSSSSSSSSS

1. To  receive,  consider  and  adopt  the  Standalone  and
Consolidated  Audited  Financial  Statements  of  the
Company for the financial year ended March 31, 2020
including  the  Reports  of  the  Board  of  Directors  and
Auditors thereon.

2. To  appoint  a  Director  in  place  of  Mrs.  Shifalli  Seth
(DIN  01388430),  who  retires  by  rotation  and  being
eligible, offers herself for re-appointment.

SSSSSPPPPPECECECECECIIIIIAAAAAL BL BL BL BL BUUUUUSSSSSIIIIINNNNNEEEEESSSSSSSSSS
3.3.3.3.3. TTTTTO  A
O  AO  APPPPP PPPPP OOOOO IIIII NNNNN T   MT   MT   MT   MT   MRRRRR S.  M
O  AO  A
S.  M
S.  M
S.  MAAAAA DDDDD H UH UH UH UH ULLLLL IIIII KKKKK AAAAA
S.  M
BBBBB H UH UH UH UH UPPPPPAAAAATTTTT KKKKK AAAAA R  (DR  (DR  (DR  (DR  (DIIIII N  08712718)  A
N  08712718)  A
N  08712718)  A
N  08712718)  AS   AS   AS   AS   AS   ANNNNN
N  08712718)  A
IIIIINNNNNDDDDDEEEEEPPPPPEEEEENNNNNDDDDDEEEEENNNNNT DT DT DT DT DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR

To consider and if thought fit, to pass with or without
modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy
RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn:::::
"RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED  TD  TD  TD  TD  THHHHHAAAAAT T T T T  pursuant  to  the  provisions  of
Sections  149,  150  and  152  and  other  applicable
provisions,  if  any,  of  the  Companies  Act,  2013  ("the
Act"),  and  the  rules  made  thereunder,  read  with
Schedule IV of the Act and Regulation 16(1)(b) and
17(1)(a)  of  the  SEBI  (Listing  Obligations  and
Disclosure Requirements) Regulations, 2015 ("Listing
Regulations") (including any statutory modification(s)
or  re-enactment  thereof  for  the  time  being  in  force),
Mrs. Madhulika Bhupatkar (DIN 08712718), who was
appointed as an Additional Director of the Company
with effect from March 18, 2020, pursuant to Section
161(1)  of  the  Act  and  Article  86  of  the  Articles  of
Association of the Company and who has submitted
the  declaration  that  she  meets  the  criteria  of
Independence as provided under the Act and the Listing
Regulations and who holds office upto the date of this

Annual General Meeting and in respect of whom the
Company has received a notice in writing under Section
160(1)  of  the  Act  from  a  member  proposing  her
candidature for the office of Director, be and is hereby
appointed as an Independent Director of the Company
to hold office for a term of upto five (5) consecutive
years with effect March 18, 2020 to March 17, 2025,
not liable to retire by rotation.

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R  TR  TR  TR  TR  THHHHH AAAAATTTTT  the  Board  of
Directors be and is hereby authorized to do all such acts,
deeds and things as may be necessary to give effect to
this Resolution."

4.4.4.4.4. TTTTTO   AO   AO   AO   AO   APPPPP PPPPP OOOOO IIIII NNNNN T   MT   MT   MT   MT   MRRRRR .   U.   U.   U.   U.   UMMMMM A   SA   SA   SA   SA   SHHHHH AAAAA NNNNN KKKKK AAAAA RRRRR
KKKKKAAAAAUUUUUSSSSSHHHHHIIIIIK (DK (DK (DK (DK (DIIIIIN 06867819) A
N 06867819) A
N 06867819) A
N 06867819) AS DS DS DS DS DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR
N 06867819) A

To consider and if thought fit, to pass with or without
modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy
RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn:
"RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED  TD  TD  TD  TD  THHHHHAAAAATTTTT  Mr.  Uma  Shankar  Kaushik
(DIN 06867819), who was appointed as an Additional
Director of the Company with effect from July 28, 2020
under Section 161(1) of the Companies Act, 2013 ("the
Act") and Article 86 of the Articles of Association of
the Company by the Board of Directors and who holds
office upto the date of this Annual General Meeting and
who  is  eligible  for  appointment,  be  and  is  hereby
appointed as Director of the Company, liable to retire
by rotation."

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R  TR  TR  TR  TR  THHHHH AAAAATTTTT  the  Board  of
Directors be and is hereby authorized to do all such acts,
deeds and things as may be necessary to give effect to
this Resolution."

5.5.5.5.5. TTTTTO AO AO AO AO APPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRR . S. S. S. S. SHHHHHAAAAAIIIIILLLLLEEEEESSSSSH KH KH KH KH KUUUUUMMMMMAAAAAR (DR (DR (DR (DR (DIIIIINNNNN

08897225) AS DS DS DS DS DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR
08897225) A
08897225) A
08897225) A
08897225) A

To consider and if thought fit, to pass with or without
modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy
RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn:
"RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED  TD  TD  TD  TD  THHHHHAAAAATTTTT  Mr.  Shailesh  Kumar  (DIN
08897225),  who  was  appointed  as  an  Additional
Director of the Company with effect from October 07,
2020 under Section 161(1) of the Companies Act, 2013

Pearl Global Industries Limited     Annual Report 2019-20

3

Notice (contd...)

("the Act") and Article 86 of the Articles of Association
of  the  Company  by  the  Board  of  Directors  and  who
holds  office  upto  the  date  of  this  Annual  General
Meeting and who is eligible for appointment be and is
hereby appointed as Director of the Company, liable to
retire by rotation."

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R  TR  TR  TR  TR  THHHHH AAAAATTTTT  the  Board  of
Directors be and is hereby authorized to do all such acts,
deeds and things as may be necessary to give effect to
this Resolution."

6.6.6.6.6. TTTTTO   AO   AO   AO   AO   APPPPP PPPPP OOOOO IIIII NNNNN T   MT   MT   MT   MT   MRRRRR .   U.   U.   U.   U.   UMMMMM A   SA   SA   SA   SA   SHHHHH AAAAA NNNNN KKKKK AAAAA RRRRR
KKKKKAAAAAUUUUUSSSSSHHHHHIIIIIK  (DK  (DK  (DK  (DK  (DIIIIIN  06867819)  A
N  06867819)  A
N  06867819)  A
N  06867819)  AS  A  WS  A  WS  A  WS  A  WS  A  WHHHHH OOOOOLLLLLEEEEE -----
N  06867819)  A
TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR

To consider and if thought fit, to pass with or without
modification(s) the following resolution as an OOOOOrrrrrdddddiiiiinnnnnaaaaarrrrryyyyy
RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn:
"RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED  TD  TD  TD  TD  THHHHHAAAAAT T T T T  pursuant  to  the  provisions  of
Sections 2(94), 196, 197 and 203 read with Schedule
V  and  other  applicable  provisions,  if  any,  of  the
Companies  Act,  2013  and  the  Companies
(Appointment  and  Remuneration  of  Managerial
Personnel)  Rules  2014  (including  any  statutory
modification(s),  enactment(s)  or  re-enactment(s)
thereof for the time being in force), Mr. Uma Shankar
Kaushik (DIN 06867819) be and is hereby appointed
as Whole-Time Director of the Company for a period
of Three years commencing from July 28, 2020."

RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Uma Shankar
Kaushik will be entitled for the following remuneration
per month as Whole-Time Director of the Company:

(((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````)))))
PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs
1,03,334/-
Basic Pay
51,667/-
House Rent Allowance
30,927/-
Special Allowance
Conveyance
1,600/-
Provident Fund & Gratuity As per Company's policy

He will be provided reimbursement of actual business
expenses  of  Conveyance  including  Driver  and
Entertainment reimbursement.

RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Uma Shankar
Kaushik, Whole-Time Director shall be responsible for
HR & Administration functions of woven division of
the Company and also perform such other duties and
services as shall from time to time be entrusted to him
by the Board of Directors of the Company."

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R  TR  TR  TR  TR  THHHHH AAAAATTTTT  the  Board  of
Directors be and is hereby authorized to do all such acts,
deeds and things as may be necessary to give effect to
this Resolution."

7.7.7.7.7. TTTTTO AO AO AO AO APPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRR . S. S. S. S. SHHHHHAAAAAIIIIILLLLLEEEEESSSSSH KH KH KH KH KUUUUUMMMMMAAAAAR (DR (DR (DR (DR (DIIIIINNNNN
08897225) AS WS WS WS WS WHHHHHOOOOOLLLLLEEEEE-----TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR
08897225) A
08897225) A
08897225) A
08897225) A

To consider and if thought fit, to pass with or without
modification(s) the following resolution as an Ordinary
Resolution:

"RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED  TD  TD  TD  TD  THHHHHAAAAATTTTT  pursuant  to  the  provisions  of
Sections 2(94), 196, 197 and 203 read with Schedule
V  and  other  applicable  provisions,  if  any,  of  the
Companies  Act,  2013  and  the  Companies
(Appointment  and  Remuneration  of  Managerial
Personnel)  Rules  2014  (including  any  statutory
modification(s),  enactment(s)  or  re-enactment(s)
thereof for the time being in force), Mr. Shailesh Kumar
(DIN 08897225) be and is hereby appointed as Whole-
Time Director of the Company for a period of Three
years commencing from October 07, 2020."

RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Shailesh Kumar
will  be  entitled  for  the  following  remuneration  per
month as Whole-Time Director of the Company:

(((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````)))))
PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs
80,000/-
Basic Pay
40,000/-
House Rent Allowance
Special Allowance
30,000/-
Provident Fund & Gratuity As per Company's policy

He will be provided reimbursement of actual business
expenses of conveyance including Driver.

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R   TR   TR   TR   TR   THHHHH AAAAATTTTT  Mr.  Shailesh
Kumar, Whole-Time Director shall be responsible for
HR functions of Knits division of the Company and
also perform such other duties and services as shall from
time  to  time  be  entrusted  to  him  by  the  Board  of
Directors of the Company."

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R  TR  TR  TR  TR  THHHHH AAAAATTTTT  the  Board  of
Directors be and is hereby authorized to do all such acts,
deeds and things as may be necessary to give effect to
this Resolution."

8.8.8.8.8. TTTTTO  
O  
O  
O  
O  

APPPPP PPPPP RRRRRO VO VO VO VO VE 
E 
E 
A
A
E 
E 
A
A

INNNNN
I
I
I
I
RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON  ON  ON  ON  ON  OF  MF  MF  MF  MF  MRRRRR .  V.  V.  V.  V.  VIIIIINNNNNOOOOOD  VD  VD  VD  VD  VAAAAAIIIIISSSSSHHHHH
N 01945795), WHHHHHOOOOOLLLLLEEEEE-----TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR
N 01945795), W
(D(D(D(D(DIIIIIN 01945795), W
N 01945795), W
N 01945795), W

REEEEEVVVVV IIIII SSSSS IIIII OOOOO N 
N 
N 
R
R
N 
N 
R
R

To consider and if thought fit, to pass with or without

4

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

modification(s) the following resolution as an Ordinary
Resolution:

"RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT in partial modification of earlier
Resolution passed by the shareholders at the 30th Annual
General Meeting of the Company held on September
24, 2019 and pursuant to the provisions of Sections 196,
197, and 203 read with Schedule V and other applicable
provisions, if any, of the Companies Act, 2013 and the
Companies  (Appointment  and  Remuneration  of
Managerial  Personnel)  Rules  2014  (including  any
statutory  modification(s),  enactment(s)  or  re-
enactment(s)  thereof  for  the  time  being  in  force),
approval of members of the company be and is hereby
accorded for revision in the monthly remuneration of
Mr. Vinod Vaish, Whole-time Director of the Company
with effect from October 01, 2019 to April 30, 2020,
as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs
Basic Pay
House Rent Allowance
Special Allowance
Provident Fund & Gratuity

(((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````)))))
68,890/-
34,440/-
44,489/-
As per Company's rules

He would be provided a Company maintained Car with
driver and a mobile phone for official purpose, and also
be  entitled  for  reimbursement  of  actual  business
expenses.

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R  TR  TR  TR  TR  THHHHH AAAAATTTTT  the  Board  of
Directors be and is hereby authorized to do all such acts
and  deeds  as  may  be  necessary  to  give  effect  to  this
Resolution."

9.9.9.9.9. TTTTTO  
O  
O  
O  
O  

APPPPP PPPPP RRRRRO VO VO VO VO VE 
E 
E 
A
A
E 
E 
A
A

REEEEE LLLLL AAAAATTTTT EEEEE D 
D 
D 
R
R
PAAAAA RRRRRTTTTT YYYYY
P
P
D 
P
D 
R
R
P
E  FIE  FINNNNNAAAAA NNNNN CCCCC IIIIIAAAAA LLLLL
E  FIE  FI
TTTTT RRRRR AAAAA N SN SN SN SN SAAAAACCCCCTTTTT IIIIIOOOOO NS  FNS  FNS  FNS  FNS  FOOOOO R  TR  TR  TR  TR  THHHHH E  FI
YYYYYEEEEEAAAAAR 2021-2022
R 2021-2022
R 2021-2022
R 2021-2022
R 2021-2022

To consider and if thought fit, to pass with or without
modification(s) the following resolution as an Ordinary
Resolution:

"RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT pursuant to Section 188 and any
other applicable provisions of the Companies Act, 2013
and the rules made there under, Regulation 23 and any
other applicable provisions of SEBI (Listing Obligations
and  Disclosure  Requirements)  Regulations,  2015,
(including  any  statutory  modification(s)  or  re-
enactment  thereof  for  the  time  being  in  force),  and
pursuant to the consent of the Audit Committee and
the Board of Directors, the approval of the members of

the  Company  be  and  is  hereby  accorded  for  entering
into contract or arrangement with the related parties as
defined under the Companies Act, 2013 and the Rules
made  there  under,  namely  Norp  Knit  Industries
Limited,  PT  Pinnacle  Apparels,  Pearl  Global  (HK)
Limited,  Pearl  Global  Fareast  Limited,  DSSP  Global
Limited,  PDS  Multinational  Fashions  Limited,
Norwest  Industries  Limited,  Pearl  Grass  Creations
Limited, Prudent Fashions Limited, Vin Pearl Global
Vietnam  Limited,  Pearl  Global  F.Z.E.,  PGIC
Investment limited, Pearl Global (Chang Zhou) Textile
Technology Co. Limited, and Pearl Global Vietnam Co.
Limited, for the financial year 2021-22, as per details
and terms & conditions as set out under the Explanatory
Statement annexed to this Notice."

RRRRR EEEEE SSSSS OOOOO LLLLLVVVVV EEEEE D  FD  FD  FD  FD  FUUUUU RRRRRTTTTT HHHHH EEEEE R  TR  TR  TR  TR  THHHHH AAAAATTTTT  the  Board  of
Directors be and is hereby authorized to perform and
execute all such acts, deeds, matters and things including
delegate  such  authority,  as  may  be  deemed  necessary,
proper or expedient to give effect to this resolution and
for the matters connected herewith or incidental hereto."

By order of the Board of Directors
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrriesiesiesiesies LLLLLiiiiimmmmmitititititeeeeeddddd
for PPPPPeaeaeaeaearrrrrl Glo
l Glo
l Glo
l Glo

Place: Gurugram
Date: October 07, 2020

(S(S(S(S(Saaaaandendendendendeeeeeep  Sp  Sp  Sp  Sp  Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll)
CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy

NONONONONOTTTTTEEEEESSSSS:::::

1. The  statement  pursuant  to  Section  102  of  the
Companies Act, 2013 (the Act) is annexed hereunder
and  forms  part  of  the  Notice.  As  required  under
Secretarial Standard-2 and regulations 26(4) and 36(3)
of  the  SEBI  (Listing  Obligations  and  Disclosure
Requirements)  Regulations,  2015 
(Listing
Regulations), the relevant information of Directors is
enclosed as Annexure-1.

2. The Register of Members and Share Transfer Books of
the Company will remain closed from Friday, November
20, 2020 to Thursday, November 26, 2020 (both days
inclusive).

3.

In  view  of  the  continuing  Covid-19  pandemic,  the
Ministry  of  Corporate  Affairs  ("MCA")  has  vide  its
Circular No. 20 dated May 5, 2020 read with Circular
No. 14 dated April 8, 2020 and Circular No. 17 dated

Pearl Global Industries Limited     Annual Report 2019-20

5

Notice (contd...)

April 13, 2020 (hereinafter collectively referred to as
"MCA  Circulars")  permitted  the  holding  of  Annual
General Meeting through VC or OAVM without the
physical presence of Members at a common venue. In
compliance with these MCA Circulars and the relevant
provisions of the Companies Act, 2013 and the SEBI
(Listing  Obligations  and  Disclosure  Requirements)
Regulations, 2015, the Annual General Meeting of the
Members of the Company is being held through VC/
OAVM.

4. PPPPPuuuuursrsrsrsrsuuuuuaaaaannnnnt  tt  tt  tt  tt  to  to  to  to  to  the  phe  phe  phe  phe  prrrrrovovovovovisioisioisioisioisionnnnns  of  t
s  of  t
s  of  t
he  Co
he  Co
he  Commmmmpppppaaaaannnnnies  Aies  Aies  Aies  Aies  Act,ct,ct,ct,ct,
s  of  the  Co
s  of  t
he  Co
2013, a M
2013, a M
2013, a Meeeeembmbmbmbmbeeeeer er er er er ennnnntttttitititititleleleleled td td td td to ao ao ao ao atttttttttteeeeend and and and and and vnd vnd vnd vnd vototototote ae ae ae ae at tt tt tt tt thehehehehe
2013, a M
2013, a M
AAAAAnnnnnnnnnnuuuuuaaaaal  Gl  Gl  Gl  Gl  Geeeeenenenenenerrrrraaaaal  Ml  Ml  Ml  Ml  Meeeeeetetetetetiiiiinnnnng  is  e
g  is  e
g  is  e
g  is  ennnnntttttitititititleleleleled  td  td  td  td  to  ao  ao  ao  ao  appppppppppoooooiiiiinnnnnt  at  at  at  at  a
g  is  e
ppppprrrrroooooxxxxxy ty ty ty ty to ao ao ao ao atttttttttteeeeend and and and and and vnd vnd vnd vnd vototototote oe oe oe oe on hn hn hn hn his/he
is/he
is/he
is/her br br br br behehehehehaaaaalllllf af af af af and tnd tnd tnd tnd thehehehehe
is/he
ppppprrrrroooooxxxxxy ney ney ney ney neeeeeed not b
d not b
d not b
d not be a Me a Me a Me a Me a Meeeeembmbmbmbmbeeeeer of t
r of t
r of t
he Co
he Co
he Commmmmpppppaaaaannnnnyyyyy. Si
. Si
. Si
. Sincncncncnceeeee
r of the Co
d not b
r of t
he Co
. Si
ttttthhhhhis  Ais  Ais  Ais  Ais  AGGGGGM  is  bM  is  bM  is  bM  is  bM  is  beieieieieinnnnng  held  pu
g  held  pu
g  held  pu
g  held  pursrsrsrsrsuuuuuaaaaannnnnt  tt  tt  tt  tt  to  to  to  to  to  the  MC
he  MC
he  MC
he  MCAAAAA
g  held  pu
he  MC
CCCCCiiiiirrrrrcucucucuculllllaaaaars trs trs trs trs thhhhhrrrrrououououougggggh VC/O
h VC/O
h VC/O
h VC/OAAAAAVVVVVMMMMM, p, p, p, p, phhhhhysicysicysicysicysicaaaaal al al al al atttttttttteeeeendndndndndaaaaancncncncnceeeee
h VC/O
of Mof Mof Mof Mof Meeeeembmbmbmbmbeeeeers hrs hrs hrs hrs haaaaas bs bs bs bs beeeeeeeeeen dn dn dn dn disisisisispppppeeeeennnnnsesesesesed wd wd wd wd wititititithhhhh. A. A. A. A. Accccccccccooooorrrrrdddddiiiiinnnnnggggglylylylyly,,,,,
ttttthe  fhe  fhe  fhe  fhe  facil
acil
acil
acilititititity  foy  foy  foy  foy  for  ar  ar  ar  ar  appppppppppoooooiiiiinnnnntttttmememememennnnnt  of  p
t  of  p
t  of  p
t  of  prrrrroooooxies  b
xies  b
xies  b
xies  by  ty  ty  ty  ty  thehehehehe
acil
t  of  p
xies  b
MMMMMeeeeembmbmbmbmbeeeeers  wrs  wrs  wrs  wrs  wililililill  not  b
l  not  b
l  not  b
l  not  be  ae  ae  ae  ae  avvvvvaaaaailililililababababable  fo
le  fo
le  fo
le  for  tr  tr  tr  tr  the  Ahe  Ahe  Ahe  Ahe  Annnnnnnnnnuuuuuaaaaalllll
l  not  b
le  fo
GGGGGeeeeenenenenenerrrrraaaaal  Ml  Ml  Ml  Ml  Meeeeeetetetetetiiiiinnnnng  ag  ag  ag  ag  and  he
nd  he
nd  he
nd  hencncncncnce  te  te  te  te  the  Phe  Phe  Phe  Phe  Prrrrroooooxxxxxy  Fy  Fy  Fy  Fy  Fooooorrrrrm  am  am  am  am  andndndndnd
nd  he
AAAAAtttttttttteeeeendndndndndaaaaancncncncnce Sl
e Sl
e Sle Sl
e Sliiiiip ap ap ap ap arrrrre not a
e not a
e not a
e not annnnnnexnexnexnexnexeeeeed td td td td to to to to to the Nhe Nhe Nhe Nhe Notototototicicicicice.e.e.e.e.
e not a

5.

Institutional/Corporate  Shareholders  (i.e.  other  than
individuals/HUF,  NRI,  etc)  are  required  to  send  a
scanned  copy  (PDF/JPEG  Format)  of  its  Board
Resolution  or  governing  body  Resolution/
Authorisation  etc.,  authorising  its  representative  to
attend  the  Annual  General  Meeting  through  VC/
OAVM  on  its  behalf  and  to  vote  through  remote  e-
voting. The said Resolution/Authorization shall be sent
to the Scrutinizer by email through their registered email
address to jayantksood@benchwalklaw.com with copies
marked 
at
the 
sandeep.sabharwal@pearlglobal.com and to its RTA at
enotices@linkintime.co.in.

Company 

to 

t detaaaaailsilsilsilsils:::::
t det
n of emmmmmaaaaail Iil Iil Iil Iil ID aD aD aD aD and Bnd Bnd Bnd Bnd Baaaaannnnnk Ak Ak Ak Ak Accccccccccououououounnnnnt det
t det
n of e
6. RRRRReeeeegggggisisisisistttttrrrrraaaaatttttioioioioion of e
n of e
t det
n of e

In case the shareholder's email ID is already registered
with the Company/its Registrar & Share Transfer Agent
"RTA"/Depositories, log in details for e-voting are being
sent on the registered email address.

In case the shareholder has not registered his/her/their
email  addresses  with  the  Company/its  RTA/
Depositories  and  or  not  updated  the  Bank  Account
mandate  for  receipt  of  dividend,  the  following
instructions to be followed:

(i) Kindly  log  in  to  the  website  of  our  RTA,  Link
Intime  India  Private  Ltd.,  www.linkintime.co.in
under  Investor  Services  >  Email/Bank  detail
Registration-  fill  in  the  details  and  upload  the
required documents and submit. OOOOORRRRR

(ii) In the case of Shares held in Demat mode:

The shareholder may please contact the Depository
Participant ("DP") and register the email address
and bank account details in the demat account as
per the process followed and advised by the DP.

7. The Notice of the Annual General Meeting along with
the  Annual  Report  for  the  financial  year  2019-20  is
being sent only by electronic mode to those Members
whose email addresses are registered with the Company/
Depositories  in  accordance  with  the  aforesaid  MCA
Circulars and Circular issued by SEBI dated May 12,
2020.  Members  may  note  that  the  Notice  of  Annual
General Meeting and Annual Report for the financial
year 2019-20 will also be available on the Company's
website  www.pearlglobal.com;  websites  of  the  Stock
Exchanges  i.e.  National  Stock  Exchange  of  India  Ltd
and  BSE  Limited  at  www.nseindia.com  and
www.bseindia.com  respectively.  Members  can  attend
and participate in the Annual General Meeting through
VC/OAVM facility only.

8.

Since the AGM will be held through VC/OAVM, the
route map is not annexed to this notice.

9. Members attending the meeting through VC/OAVM
shall  be  counted  for  the  purposes  of  reckoning  the
quorum  under  Section  103  of  the  Companies  Act,
2013.

10. Information  in  respect  of  such  unclaimed  dividend
including when due for transfer to the said Fund is given
below:

6

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

FFFFFiiiiinnnnnaaaaancianciancianciancial yea
l yearrrrr
l yea
l yea
l yea
eeeeendendendendendeddddd

31.03.2013
31.03.2014
31.03.2015
31.03.2016
31.03.2016
31.03.2017
31.03.2018
31.03.2019

e of Divideideideideidend Dnd Dnd Dnd Dnd Deeeeeclclclclclaaaaarrrrreeeeeddddd
e of Div
RRRRRaaaaattttte of Div
e of Div
e of Div
ooooon tn tn tn tn the phe phe phe phe paaaaaididididid-----uuuuup ep ep ep ep eqqqqquuuuuititititityyyyy
shshshshshaaaaarrrrre ce ce ce ce caaaaapppppitititititaaaaalllll
10.00% (Final)
20.00% (Final)
22.50% (Final)
25.00% (Interim)
5.00% (Final)
30.00% (Final)
20.00% (Final)
30.00% (Final)

Members  who  have  not  en-cashed  their  dividend
warrant(s) so far, are requested to make their claim to
the  Company  or  to  the  Registrar  and  Share  Transfer
Agent  of  the  Company  at  Link  Intime  India  Pvt.
Limited,  Noble  Heights,  1st  Floor,  Plot  NH-2,  C-1
Block LSC, Near Savitri Market, Janakpuri, New Delhi-
110058.

11. Members  holding  shares  in  dematerialised  mode  are
requested to intimate all changes with respect to their
bank details, mandate, nomination, power of attorney,
change of address, e-mail address, change in name etc.
to their depository participant. These changes will be
automatically reflected in the Company's records which
will help the Company to provide efficient and better
services to the Members.

12. Members holding shares in physical form are requested
to intimate changes with respect to their bank account
(viz. name and address of the branch of the bank, MICR
code of branch, type of account and account number),
mandate,  nomination,  power  of  attorney,  change  of
address, e-mail address, change in name etc. immediately
to the Company.

13. No  Gift(s)  shall  be  distributed  at  the  ensuing  31st

Annual General Meeting of your Company.

14. In  compliance  with  provisions  of  Section  108  of  the
Companies Act, 2013 and Rule 20 of the Companies
(Management  and  Administration)  Rules,  2014,  as
amended  from  time  to  time  and  Regulation  44  of
Securities  and  Exchange  Board  of  India  (Listing
Obligations and Disclosure Requirements) Regulations,
2015, the Company is pleased to provide to its members
facility to exercise their right to vote at the 31st Annual
General Meeting (AGM) by electronic means and the

DDDDDaaaaattttte of
e of
e of
e of
e of
dededededeclclclclclaaaaarrrrraaaaatttttioioioioion ofn ofn ofn ofn of
DivDivDivDivDivideideideideidendndndndnd
27.09.2013
26.09.2014
22.09.2015
11.03.2016
27.09.2016
28.09.2017
24.09.2018
24.09.2019

LaLaLaLaLassssst dt dt dt dt daaaaattttte foe foe foe foe forrrrr
clclclclclaaaaaiiiiimmmmmiiiiinnnnng ug ug ug ug unnnnnpppppaaaaaididididid
DivDivDivDivDivideideideideidendndndndnd
25.10.2020
24.10.2021
20.10.2022
09.04.2023
26.10.2023
27.10.2024
23.10.2025
23.10.2026

DDDDDue due due due due daaaaattttte foe foe foe foe forrrrr
tttttrrrrraaaaannnnnsssssfefefefefer tr tr tr tr tooooo
IIIIIEEEEEP FP FP FP FP Fuuuuundndndndnd
24.11.2020
23.11.2021
19.11.2022
08.05.2023
25.11.2023
26.11.2024
22.11.2025
22.11.2026

business contained herein may be transacted through
e-voting Services provided by Link Intime India Private
Limited.

15. The voting period begins on Monday, November 23,
2020 at 09:00 A.M. and ends on Wednesday, November
25, 2020 at 05:00 P.M. During this period shareholders
of the Company, holding shares either in physical form
or  in  dematerialized  form,  as  on  the  cut-off  date
November 19, 2020 (record date) may cast their vote
electronically.

16. Any person, who acquires shares of the Company and
become Member of the Company after dispatch of the
Notice  and  holding  shares  as  on  the  cut-off  date  i.e
November 19, 2020 may follow the same instructions
as mentioned for e-Voting.

17. Mr.Jayant  Sood,  Practicing  Company  Secretary,
(Membership  No.  FCS  4482)  has  been  appointed  as
the Scrutinizer to scrutinize the e-voting process in a
fair and transparent manner.

18. The Scrutinizer shall, after the conclusion of voting at
the  general  meeting,  unblock  the  votes  cast  through
remote e-voting in the presence of at least two witnesses
not in the employment of the Company and make, not
later  than  three  days  of  conclusion  of  the  meeting,  a
Consolidated Scrutinizer's Report of the total votes cast
in favour or against, if any, to the Chairman or a person
authorised by him in writing who shall countersign the
same.

19. The Results shall be declared on or after the AGM of
the  Company.  The  Results  declared  along  with  the
Scrutinizer's Report shall be placed immediately on the
Company's website wwwwwwwwwwwwwww.....pppppeaeaeaeaearrrrrlllllggggglololololobbbbbaaaaalllll.....cccccooooommmmm and on the
website  of  Link  Intime  India  Private  Limited  and

Pearl Global Industries Limited     Annual Report 2019-20

7

Notice (contd...)

communicated to the BSE Limited and National Stock
Exchange of India Limited simultaneously.

20.20.20.20.20. IIIIINSNSNSNSNSTTTTT RRRRRUUUUUCCCCCTTTTTIIIIIOOOOONS  FNS  FNS  FNS  FNS  FOOOOOR  ER  ER  ER  ER  E-----VOVOVOVOVOTTTTTIIIIINNNNNG  AG  AG  AG  AG  ARRRRRE  AE  AE  AE  AE  ASSSSS

FFFFFOOOOOLLLLLLLLLLOOOOOWWWWWSSSSS:::::
RRRRReeeeemotmotmotmotmote ee ee ee ee e-----VVVVVotototototiiiiinnnnng Ig Ig Ig Ig Innnnnssssstttttrrrrructuctuctuctuctioioioioionnnnns fos fos fos fos for shr shr shr shr shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs:::::

1. Open the internet browser and launch the URL:

https://instavote.linkintime.co.in

Those who are first time users of LIIPL e-voting
platform or holding shares in physical mode have
to  mandatorily  generate  their  own  Password,  as
under:

Click on "SigSigSigSigSign  Un  Un  Un  Un  Uppppp" under 'SSSSSHHHHHAAAAARRRRRE  HE  HE  HE  HE  HOOOOOLLLLLDDDDDEEEEERRRRR'
tab and register with your following details: -

AAAAA..... UUUUUseseseseser Ir Ir Ir Ir IDDDDD::::: Enter your User ID

•

•

•

Shareholders/members holding shares in
CCCCCDDDDDSSSSSL deL deL deL deL demmmmmaaaaat act act act act accccccououououounnnnnt sht sht sht sht shaaaaallllll pl pl pl pl prrrrrovovovovovide 16
ide 16
ide 16
ide 16
ide 16
DigDigDigDigDigit Bit Bit Bit Bit Beeeeeneficia
neficia
neficia
neficiarrrrry Iy Iy Iy Iy IDDDDD
neficia
Shareholders/members holding shares in
NSNSNSNSNSDDDDDL  deL  deL  deL  deL  demmmmmaaaaat  ac
t  act  accccccououououounnnnnt  sht  sht  sht  sht  shaaaaallllll  pl  pl  pl  pl  prrrrrovovovovovide  8
t  act  ac
ide  8
ide  8
ide  8
ide  8
CCCCChhhhhaaaaarrrrractactactactacteeeeer Dr Dr Dr Dr DP IP IP IP IP ID foD foD foD foD follllllololololowwwwweeeeed bd bd bd bd by 8 Dig
y 8 Dig
y 8 Dig
y 8 Digititititit
y 8 Dig
CCCCClllllieieieieiennnnnt It It It It IDDDDD
Shareholders/members holding shares in
ppppphhhhhysicysicysicysicysicaaaaal fol fol fol fol forrrrrm shm shm shm shm shaaaaallllll pl pl pl pl prrrrrovovovovovideideideideide Event No +
Folio  Number  registered  with  the
Company

B.B.B.B.B. PPPPPAAAAANNNNN: Enter your 10-digit Permanent Account
Number  (PAN)  (Members  who  have  not
updated  their  PAN  with  the  Depository
Participant  (DP)  /  Company  shall  use  the
sequence  number  provided  to  you,  if
applicable.

C.C.C.C.C. DDDDDOOOOOB/DB/DB/DB/DB/DOOOOOIIIII: Enter the Date of Birth (DOB)
/ Date of Incorporation (DOI) (As recorded
with  your  DP  /  Company  -  in  DD/MM/
YYYY format)

DDDDD..... BBBBBaaaaannnnnk  Ak  Ak  Ak  Ak  Accccccccccououououounnnnnt  Nt  Nt  Nt  Nt  Nuuuuumbmbmbmbmbeeeeerrrrr:  Enter  your  Bank
Account Number (last four digits), as recorded
with your DP/Company.
•

Shareholders / members holding shares in
CCCCCDDDDDSSSSSL  deL  deL  deL  deL  demmmmmaaaaat  ac
t  accccccououououounnnnnt  sht  sht  sht  sht  shaaaaallllll  pl  pl  pl  pl  prrrrrovovovovovideideideideide
t  ac
t  ac
t  ac
eiteiteiteiteitheheheheher 'Cr 'Cr 'Cr 'Cr 'C' o' o' o' o' or 'D'
r 'D', ab, ab, ab, ab, abovovovovoveeeee
r 'D'
r 'D'
r 'D'
Shareholders / members holding shares in
ide 'D',,,,,
ide 'D'
ide 'D'
NSNSNSNSNSDDDDDL deL deL deL deL demmmmmaaaaat act act act act accccccououououounnnnnt sht sht sht sht shaaaaallllll pl pl pl pl prrrrrovovovovovide 'D'
ide 'D'
abababababovovovovoveeeee
Shareholders / members holding shares in

•

•

ppppphhhhhysicysicysicysicysicaaaaal fol fol fol fol forrrrrmmmmm but have not recorded 'C'
and 'D', shall provide their Folio number
in 'D' above

Set  the  password  of  your  choice  (The  password
should contain minimum 8 characters, at least one
special Character (@!#$&*), at least one numeral,
at least one alphabet and at least one capital letter).

Click "confirm" (Your password is now generated).

NOTE:  If  Shareholders/  members  are  holding
shares in demat form and have registered on to e-
Voting 
https://
of 
instavote.linkintime.co.in,  and/or  voted  on  an
earlier event of any company then they can use their
existing password to login.

LIIPL : 

system 

2. Click on 'Login' under 'SSSSSHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR' tab.

3. Enter  your  User  ID,  Password  and  Image
Verification  (CAPTCHA)  Code  and  click  on
'SSSSSubububububmmmmmititititit'.

4. After successful login, you will be able to see the
notification for e-voting. Select 'VVVVVieieieieiewwwww' icon.

5. E-voting page will appear.

6. Refer the Resolution description and cast your vote
by selecting your desired option 'FFFFFaaaaavvvvvououououour / Ag
r / Ag
r / Ag
r / Agaaaaaiiiiinnnnnsssssttttt'
r / Ag
(If you wish to view the entire Resolution details,
click on the 'VVVVVieieieieiew Rw Rw Rw Rw Resoesoesoesoesollllluuuuutttttioioioioionnnnn' file link).

7. After  selecting  the  desired  option  i.e.  Favour  /
Against, click on 'SSSSSubububububmmmmmititititit'. A confirmation box will
be displayed. If you wish to confirm your vote, click
on 'YYYYYeseseseses', else to change your vote, click on 'No' and
accordingly modify your vote.

8.

Institutional  shareholders  (i.e.  other  than
Individuals, HUF, NRI etc.) and Custodians are
required to log on the e-voting system of LIIPL at
https://instavote.linkintime.co.in  and  register
themselves  as  'CCCCCuuuuussssstttttooooo dddddi ai ai ai ai an  /  Mn  /  Mn  /  Mn  /  Mn  /  Muuuuutttttuuuuuaaaaal  Fl  Fl  Fl  Fl  Fuuuuund  /
nd  /nd  /
nd  /nd  /
CoCoCoCoCorprprprprpooooorrrrraaaaattttte Be Be Be Be Booooodydydydydy'. They are also required to upload
a scanned certified true copy of the board resolution
/authority letter/power of attorney etc. Together
with  attested  specimen  signature  of  the  duly
authorised representative(s) in PDF format in the
'CCCCCuuuuussssstttttooooodddddiaiaiaiaian  /  Mn  /  Mn  /  Mn  /  Mn  /  Muuuuutttttuuuuuaaaaal  Fl  Fl  Fl  Fl  Fuuuuund  /  Co
nd  /  Corprprprprpooooorrrrraaaaattttte  Be  Be  Be  Be  Booooodydydydydy'
nd  /  Co
nd  /  Co
nd  /  Co
login for the Scrutinizer to verify the same.

f you haaaaavvvvve foe foe foe foe forgrgrgrgrgotototototttttteeeeen tn tn tn tn the phe phe phe phe paaaaasssssswswswswswooooorrrrrddddd:::::
IIIIIf you h
f you h
f you h
f you h
o Click on 'LLLLLooooogggggiiiiinnnnn' under 'SSSSSHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR'
tab and further Click 'fofofofoforgrgrgrgrgot pot pot pot pot paaaaasssssswswswswswooooorrrrrddddd?'

8

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

•

•

o

Enter UUUUUseseseseser Ir Ir Ir Ir IDDDDD, select MMMMMooooode de de de de and Enter Image
Verification (CAPTCHA) Code and Click on
'SSSSSubububububmmmmmititititit'.

In case shareholders/ members is having valid email
address, Password will be sent to his / her registered
e-mail address.

Shareholders/ members can set the password of his/
her choice by providing the information about the
particulars of the Security Question and Answer,
PAN,  DOB/DOI,  Bank  Account  Number  (last
four digits) etc. As mentioned above.

• The  password  should  contain  minimum  8
characters, at least one special character (@!#$&*),
at least one numeral, at least one alphabet and at
least one capital letter.

•

It  is  strongly  recommended  not  to  share  your
password with any other person and take utmost
care to keep your password confidential.

For shareholders/ members holding shares in physical
form,  the  details  can  be  used  only  for  voting  on  the
resolutions contained in the Notice.

During the voting period, shareholders/ members can
login any number of time till they have voted on the
resolution(s) for a particular "Event".

Shareholders/ members holding multiple folios/demat
account shall choose the voting process separately for
each of the folios/demat account.

Any person, who acquires shares of the Company and
become Member of the Company after dispatch of the
Notice  and  holding  shares  as  on  the  cut-off  date  i.e
November 19, 2020 may follow the same instructions
as mentioned above for e-Voting.

In  case  shareholders/  members  have  any  queries
regarding  e-voting,  they  may  refer  the  FFFFFrrrrreeeeeqqqqqueueueueuennnnntttttlylylylyly
AskAskAskAskAskeeeeed  Qd  Qd  Qd  Qd  Quesuesuesuesuestttttioioioioionnnnns  ('Fs  ('Fs  ('Fs  ('Fs  ('FAAAAAQQQQQsssss')')')')')  and  IIIIInnnnnssssstttttaaaaaVVVVVototototote  ee  ee  ee  ee  e-----VVVVVotototototiiiiinnnnnggggg
mmmmmaaaaannnnnuuuuuaaaaalllll available at https://instavote.linkintime.co.in,
under  HHHHHe le le le le lppppp  section  or  send  an  email  to
enotices@linkintime.co.in  or  contact  on:  -  Tel:  022-
4918 6000.

21.21.21.21.21. PPPPPRRRRROOOOOCCCCCEEEEESSSSSS AS AS AS AS ANNNNND MD MD MD MD MAAAAANNNNNNNNNNEEEEER FR FR FR FR FOOOOOR AR AR AR AR ATTTTTTTTTTEEEEENNNNNDDDDDIIIIINNNNNGGGGG
TTTTT HHHHH E   AE   AE   AE   AE   ANNNNN NNNNN UUUUUAAAAA L   GL   GL   GL   GL   GEEEEE NNNNN EEEEE RRRRR AAAAA L  ML  ML  ML  ML  MEEEEE EEEEETTTTT IIIII NNNNN GGGGG
TTTTTHHHHHRRRRROOOOOUUUUUGGGGGH IH IH IH IH INSNSNSNSNSTTTTTAAAAAMMMMMEEEEEEEEEET AT AT AT AT ARRRRRE AE AE AE AE AS FS FS FS FS FOOOOOLLLLLLLLLLOOOOOWWWWWSSSSS:::::

1. Open the internet browser and launch the URL:

https://instameet.linkintime.co.in

Select  the  "CoCoCoCoCommmmmpppppaaaaannnnnyyyyy"  and  'EEEEEvvvvveeeeennnnnt  Dt  Dt  Dt  Dt  Daaaaattttteeeee'  and
register with your following details: -

AAAAA..... DDDDDeeeeemmmmmaaaaat At At At At Accccccccccououououounnnnnt Nt Nt Nt Nt Nooooo. o. o. o. o. or Fr Fr Fr Fr Fooooolllllio Nio Nio Nio Nio Nooooo: Enter your
16 digit Demat Account No. or Folio No

•

•

•

Shareholders/  members  holding  shares  in
ide  16
ide  16
t  accccccououououounnnnnt  sht  sht  sht  sht  shaaaaallllll  pl  pl  pl  pl  prrrrrovovovovovide  16
t  ac
CCCCCDDDDDSSSSSL  deL  deL  deL  deL  demmmmmaaaaat  ac
t  ac
ide  16
ide  16
t  ac
neficiarrrrry Iy Iy Iy Iy IDDDDD
neficia
DigDigDigDigDigit Bit Bit Bit Bit Beeeeeneficia
neficia
neficia

Shareholders/  members  holding  shares  in
t  acccccco uo uo uo uo unnnnnt  sht  sht  sht  sht  shaaaaa llllll  pl  pl  pl  pl  prrrrro vo vo vo vo vide  8
N SN SN SN SN SDDDDD L  deL  deL  deL  deL  demmmmmaaaaat  ac
ide  8
ide  8
t  ac
t  ac
ide  8
ide  8
t  ac
CCCCChhhhhaaaaarrrrractactactactacteeeeer  Dr  Dr  Dr  Dr  DP  IP  IP  IP  IP  ID  foD  foD  foD  foD  follllllololololowwwwweeeee d  bd  bd  bd  bd  by  8  Dig
y  8  Digititititit
y  8  Dig
y  8  Dig
y  8  Dig
CCCCClllllieieieieiennnnnt It It It It IDDDDD

Shareholders/  members  holding  shares  in
ppppphhhhhysicysicysicysicysicaaaaal  fol  fol  fol  fol  forrrrrm  shm  shm  shm  shm  shaaaaallllll  pl  pl  pl  pl  prrrrrovovovovovideideideideide  Folio  Number
registered with the Company

B.B.B.B.B. PPPPPAAAAANNNNN:  Enter  your  10-digit  Permanent  Account
Number (PAN) (Members who have not updated
their PAN with the Depository Participant (DP)/
Company shall use the sequence number provided
to you, if applicable).

C.C.C.C.C. MMMMMooooobbbbbile Nile Nile Nile Nile Nooooo.....: Enter your mobile number.
DDDDD..... EEEEEmmmmmaaaaail  Iil  Iil  Iil  Iil  IDDDDD: Enter your email id, as recorded with

your DP/Company.

Click "Go to Meeting" (You are now registered for
InstaMeet and your attendance is marked for the
meeting).

Please refer the instructions (annexure) for the software
requirements and kindly ensure to install the same on
the device which would be used to attend the meeting.
Please read the instructions carefully and participate in
the  meeting.  You  may  also  call  upon  the  InstaMeet
Support Desk for any support on the dedicated number
provided to you in the instruction/ InstaMEET website.

IIIIInnnnnssssstttttrrrrructuctuctuctuctioioioioionnnnns  fos  fos  fos  fos  for  Shr  Shr  Shr  Shr  Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders/  Mrs/  Mrs/  Mrs/  Mrs/  Meeeeembmbmbmbmbeeeeers  t
rs  to  So  So  So  So  Spppppeaeaeaeaeakkkkk
rs  t
rs  t
rs  t
ddddduuuuurrrrriiiiinnnnng  tg  tg  tg  tg  the  Ahe  Ahe  Ahe  Ahe  Annnnnnnnnnuuuuuaaaaal  Gl  Gl  Gl  Gl  Geeeeen en en en en errrrraaaaal  Ml  Ml  Ml  Ml  Meeeee e te te te te tiiiiinnnnng  tg  tg  tg  tg  thhhhhrrrrro uo uo uo uo uggggg hhhhh
IIIIInnnnnssssstttttaaaaaMMMMMeeeeeetetetetet:::::

1.

2.

3.

Shareholders who would like to speak during the
meeting  must  register  their  request  3  days  in
advance  with 
the
investor.pgil@pearlglobal.com.

company 

the 

on 

Shareholders will get confirmation on first cum first
basis depending upon the provision made by the
client.

Shareholders will receive "speaking serial number"
once they mark attendance for the meeting.

Pearl Global Industries Limited     Annual Report 2019-20

9

Notice (contd...)

4. Other  shareholder  may  ask  questions  to  the
panellist, via active chat-board during the meeting.

5. Please remember speaking serial number and start
your conversation with panellist by switching on
video mode and audio of your device.

Shareholders  are  requested  to  speak  only  when
moderator of the meeting/ management will announce
the name and serial number for speaking.

IIIIInnnnnssssstttttrrrrructuctuctuctuctioioioioionnnnns  fos  fos  fos  fos  for  Shr  Shr  Shr  Shr  Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders/  Mrs/  Mrs/  Mrs/  Mrs/  Meeeeembmbmbmbmbeeeeers  t
rs  to  Vo  Vo  Vo  Vo  Votototototeeeee
rs  t
rs  t
rs  t
ddddduuuuurrrrriiiiinnnnng  tg  tg  tg  tg  the  Ahe  Ahe  Ahe  Ahe  Annnnnnnnnnuuuuuaaaaal  Gl  Gl  Gl  Gl  Geeeeen en en en en errrrraaaaal  Ml  Ml  Ml  Ml  Meeeee e te te te te tiiiiinnnnng  tg  tg  tg  tg  thhhhhrrrrro uo uo uo uo uggggg hhhhh
IIIIInnnnnssssstttttaaaaaMMMMMeeeeeetetetetet:::::

Once  the  electronic  voting  is  activated  by  the
scrutinizer/  moderator  during  the  meeting ,
shareholders/  members  who  have  not  exercised  their
vote through the remote e-voting can cast the vote as
under:

1. On  the  Shareholders  VC  page,  click  on  the  link

for e-Voting "Cast your vote"

2. Enter  your  16  digit  Demat  Account  No.  /  Folio
No. and OTP (received on the registered mobile
number/  registered  email  Id)  received  during
registration for InstaMEET and click on 'Submit'.

3. After  successful  login,  you  will  see  "Resolution
Description"  and  against  the  same  the  option
"Favour/ Against" for voting.

4. Cast your vote by selecting appropriate option i.e.
"Favour/Against" as desired. Enter the number of
shares (which represents no. of votes) as on the cut-
off date under 'Favour/Against'.

5. After selecting the appropriate option i.e. Favour/
Against as desired and you have decided to vote,
click  on  "Save".  A  confirmation  box  will  be
displayed. If you wish to confirm your vote, click
on  "Confirm",  else  to  change  your  vote,  click  on
"Back" and accordingly modify your vote.

6. Once you confirm your vote on the resolution, you
will not be allowed to modify or change your vote
subsequently.

Note: Shareholders/ Members, who will be present in
the Annual General Meeting through InstaMeet facility
and  have  not  casted  their  vote  on  the  Resolutions
through remote e-Voting and are otherwise not barred
from doing so, shall be eligible to vote through e-Voting
facility  during  the  meeting.  Shareholders/  Members
who have voted through Remote e-Voting prior to the

Annual  General  Meeting  will  be  eligible  to  attend/
participate  in  the  Annual  General  Meeting  through
InstaMeet. However, they will not be eligible to vote
again during the meeting.

Shareholders/  Members  are  encouraged  to  join  the
Meeting through Tablets/ Laptops connected through
broadband for better experience.

Shareholders/  Members  are  required  to  use  Internet
with  a  good  speed  (preferably  2  MBPS  download
stream) to avoid any disturbance during the meeting.

Please  note  that  Shareholders/Members  connecting
from  Mobile  Devices  or  Tablets  or  through  Laptops
connecting via Mobile Hotspot may experience Audio/
Visual  loss  due  to  fluctuation  in  their  network.  It  is
therefore  recommended  to  use  stable  Wi-FI  or  LAN
connection to mitigate any kind of aforesaid glitches.

In  case  shareholders/  members  have  any  queries
regarding  login/  e-voting,  they  may  send  an  email  to
instameet@linkintime.co.in or contact on: - Tel: 022-
49186175.

EEEEEXXXXXPPPPPLLLLLAAAAANNNNNAAAAATTTTTOOOOORRRRRY SY SY SY SY STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT

As required by Section 102 of the Companies Act, 2013 the
following Explanatory Statement sets out the material facts
relating  to  the  businesses  under  Item  Nos.  3  to  9  of  the
accompanying Notice.

IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 3:
. 3:
. 3:
. 3:
. 3:

The Board of Directors, based on recommendation of the
Nomination and Remuneration Committee, appointed Mrs.
Madhulika  Bhupatkar,  as  an  Additional  Director  in  the
capacity of Independent Women Director of the Company
with effect from March 18, 2020, pursuant to section 161
of the Companies Act, 2013, to comply the requirements of
proviso of Regulation 17(1)(a) of SEBI (Listing Obligation
and  Disclosure  Requirement)  Regulation  2015.  Mrs.
Bhuptakar shall hold office as an additional Director up to
the date of this Annual General Meeting and is eligible to be
appointed as an Independent Director for a term upto five
(5) consecutive years.

The Company has received necessary notice from a member
under  Section  160(1)  of  the  Companies  Act,  2013  ("the
Act") proposing her candidature for appointment as Director
of the Company. Mrs. Bhupatkar is not disqualified from
being appointed as Director in terms of Section 164 of the
Act  and  has  given  her  consent  to  act  as  Director  of  the
Company. The Company has also received declaration from

10

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

Mrs. Bhupatkar that she meets the criteria of Independence
as  prescribed  under  Section  149  of  the  Act  read  with  the
Rules  made  thereunder  and  Regulation  16  of  the  SEBI
(Listing  Obligations  &  Disclosure  Requirements)
Regulations,  2015.  She  also  fulfills  the  requirement  of
Section 150 of the Act, regarding registration as Independent
Director  in  databank  of  Independent  Directors.  In  the
opinion of the Board, she fulfils the conditions as specified
in the Companies Act, 2013 and SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.

Mrs. Bhupatkar, aged about 64 years, having degree in B.Sc.,
Post Graduate Diploma in Dietetics and B.Ed., with over
30  years  of  experience  in  academics  and  held  position  as
Principal  in  various  educational  institutions  and  having
experience in general management.

The Board of Directors in its meeting held on July 28, 2020,
appointed  Mrs.  Bhupatkar  as  Chairperson  of  Corporate
Social  Responsibility  Committee  and  member  in  Audit
Committee of the Company.

Details  of  other  Directorship  /  Committee  Membership
held in other Companies: NNNNNIIIIILLLLL

She will be paid remuneration by way of fee for attending
meetings of the Board or for any other purpose whatsoever
as  may  be  decided  by  the  Board  and  reimbursement  of
expenses for participation in the Board.

Shareholders'  approval  is  sought  for  appointment  of  Mrs.
Madhulika  Bhupatkar  as  an  Independent  Director  of  the
Company.

Copy  of  draft  letter  of  appointment  of  Mrs.  Madhulika
Bhupatkar as an Independent Director setting out the terms
and conditions would be available for electronic inspection
without any fee by the members on the basis of the request
being sent on investor.pgil@pearlglobal.com.

None of the Directors and Key Managerial Personnel of the
Company,  or  their  relatives,  except  Mrs.  Madhulika
Bhupatkar, herself is interested, financially or otherwise, in
this Resolution.

Your Directors recommend the passing of the resolution at
Item no.3 as an Ordinary Resolution.

Additional  information  in  respect  of  Mrs.  Bhupatkar,
pursuant to Regulation 36 of the SEBI (Listing Obligations
and  Disclosure  Requirements)  Regulations,  2015  and
Secretarial Standard 2 is annexed to this Notice.

IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 4 & 6:
. 4 & 6:
. 4 & 6:
. 4 & 6:
. 4 & 6:

The Board of Directors, based on the recommendation of

Nomination  and  Remuneration  Committee,  at  their
meetings held on July 28, 2020, appointed Mr. Uma Shankar
Kaushik (DIN 06867819) as an Additional Director and
Whole-Time Director of the Company, with effect from July
28, 2020.

Before  his  appointment  as  Director,  he  was  working  as
Assistant Vice-President (HR & Admin) of the Company.
After  resignation  of  Mr.  Vinod  Vaish,  from  the  office  of
Director and Whole-Time Director of the Company, who
was  heading  the  HR  &  Administration  functions  of  the
Company, The Nomination and Remuneration Committee
and  the  Board  of  Directors  considered  that  he  is  fit  and
proper  person  to  appoint  as  Director  and  Whole-Time
Director for heading the HR & Administration functions
of the Company. Mr. Kaushik is not disqualified from being
appointed  as  Director  in  terms  of  Section  164  of  the
Companies Act, 2013 and has given his consent to act as
Director and Whole-Time Director of the Company.

Mr.  Uma  Shankar  Kaushik,  aged  about  47  years,  holds
Bachelor  Degree  in  Arts  from  Delhi  University  and
Executive  Post  Graduate  Diploma  in  HR  &  Personnel
Management from IMT Ghaziabad and having more than
21  years  experience  in  the  field  of  the  HR  and
Administration.

Details of other Directorship/Committee Membership held
by him in other Companies are as follows:

Directorship:

He holds Directorship in PKW Associates Private Ltd.

Committee Membership:

He  does  not  hold  any  committee  membership  in  any
Company.

Shareholders'  approval  is  sought  for  appointment  of  Mr.
Uma  Shankar  Kaushik  as  Director  and  Whole-Time
Director  of  the  Company.  The  appointment  and
Remuneration payable to Mr. Kaushik is within the limits
provided  under  Section  196,  197  and  203  read  with
Schedule  V  and  other  applicable  provisions  of  the
Companies Act, 2013.

The  terms  as  set  out  in  the  resolution  and  explanatory
statements may be treated as a written memorandum setting
out  terms  of  appointment  of  Mr.  Uma  Shankar  Kaushik
under Section 190 of the Companies, Act, 2013.

None of the Directors and Key Managerial Personnel of the
Company,  or  their  relatives,  except  Mr.  Uma  Shankar
Kaushik, himself is interested, financially or otherwise, in
this Resolution.

Pearl Global Industries Limited     Annual Report 2019-20

11

Notice (contd...)

Your Directors recommend the passing of the resolution at
Item no.4 & 6 as an Ordinary Resolution.

Additional information in respect of Mr. Kaushik, pursuant
to  Regulation  36  of  the  SEBI  (Listing  Obligations  and
Disclosure Requirements) Regulations, 2015 and Secretarial
Standard 2 is annexed to this Notice.

Statement Pursuant to Section II of Part II of Schedule V of
the Companies Act, 2013, is provided below.

Copy of the resolutions passed by the Board in respect of
the  above  would  be  available  for  electronic  inspection
without any fee by the members on the basis of the request
being sent on investor.pgil@pearlglobal.com.

IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 5 & 7:
. 5 & 7:
. 5 & 7:
. 5 & 7:
. 5 & 7:

The Board of Directors at its meeting held on October 07,
2020,  based  on  the  recommendation  of  Nomination  and
Remuneration Committee at its meeting held on September
24, 2020, appointed Mr. Shailesh Kumar (DIN 08897225)
as an Additional Director and Whole-Time Director of the
Company, with effect from October 07, 2020.

Before  his  appointment  as  Director,  he  was  heading  HR
functions of the Knits division of the Company as DGM
(HR). The Nomination and Remuneration Committee and
the Board of Directors considered that he is fit and proper
person  to  appoint  as  Director  and  Whole-Time  Director
for  heading  the  HR  functions  of  Knits  division  of  the
Company.  Mr.  Shailesh  is  not  disqualified  from  being
appointed  as  Director  in  terms  of  Section  164  of  the
Companies Act, 2013 and has given his consent to act as
Director and Whole-Time Director of the Company.

Mr.  Shailesh  Kumar,  aged  about  51  years,  holds  Bachelor
degree in Science from Magadh University, Post Graduate
Diploma in Personnel Management & Industrial Relations
from  LNMI  Patna  and  Diploma  in  Labour  Laws  with
Administrative Law from Annamalai University and having
more  than  26  years  of  experience  in  the  field  of  HR  and
Personnel Management and Labour Laws Compliances.

Details  of  other  Directorship  /  Committee  Membership
held in other Companies: NNNNNIIIIILLLLL

Shareholders'  approval  is  sought  for  appointment  of  Mr.
Shailesh Kumar as Director and Whole-Time Director of
the Company. The appointment and Remuneration payable
to Mr. Shailesh is within the limits provided under Section
196, 197 and 203 read with Schedule V and other applicable
provisions of the Companies Act, 2013.

The  terms  as  set  out  in  the  resolution  and  explanatory

statements may be treated as a written memorandum setting
out  terms  of  appointment  of  Mr.  Shailesh  Kumar  under
Section 190 of the Companies, Act, 2013.

None of the Directors and Key Managerial Personnel of the
Company,  or  their  relatives,  except  Mr.  Shailesh  Kumar,
himself  is  interested,  financially  or  otherwise,  in  this
Resolution.

Your Directors recommend the passing of the resolution at
Item no.5 & 7 as an Ordinary Resolution.

Additional information in respect of Mr. Shailesh Kumar,
pursuant to Regulation 36 of the SEBI (Listing Obligations
and  Disclosure  Requirements)  Regulations,  2015  and
Secretarial Standard 2 is annexed to this Notice.

Statement Pursuant to Section II of Part II of Schedule V of
the Companies Act, 2013, is provided below.

Copy of the resolutions passed by the Board in respect of
the  above  would  be  available  for  electronic  inspection
without any fee by the members on the basis of the request
being sent on investor.pgil@pearlglobal.com.

IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 8:
. 8:
. 8:
. 8:
. 8:
The members of the Company at their 29th Annual General
Meeting held on September 24, 2018, were re-appointed Mr.
Vinod Vaish as Whole-Time Director of the Company for
a period of Two years with effect from October 19, 2018
upto October 18, 2020.

Further, the members of the Company at their 30th Annual
General Meeting held on September 24, 2019, revised the
remuneration of Mr. Vinod Vaish, as per detail below, with
effect from April 01, 2018:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs
Basic Pay
House Rent Allowance
Special Allowance
Provident Fund & Gratuity

(((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````)))))
68,890/-
34,440/-
33,668/-
As per Company's rules

The  Nomination  and  Remuneration  Committee  and  the
Board of Directors, considering the growth in the business
activities,  increased  volume  of  work,  revised  the
remuneration of Mr. Vinod Vaish with effect from October
01, 2019, at their meetings held on February 13, 2020.

However, Mr. Vinod Vaish has tendered his resignation from
the  office  of  Director  and  Whole-Time  Director  of  the
Company with effect from April 30, 2020.

Since the Board of Directors has revised the remuneration
of Mr. Vinod Vaish with effect from October 01, 2019 and

12

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

has  paid  the  remuneration  till  April  30,  2020  to  him,
shareholders'  approval  is  sought  for  variation  in  terms  of
remuneration  of  Mr.  Vinod  Vaish.  This  remuneration  is
within  the  limits  provided  under  Section  197  read  with
Schedule  V  and  other  applicable  provisions  of  the
Companies Act, 2013.

Further details of Mr. Vaish are as follows:

Mr.  Vinod  Vaish,  aged  about  62  years,  is  a  Bachelor  of
Science and Long Logistics Management. He was Whole-
Time Director of the Company, heading Administration and
HR functions of the Company since 2012 till April 30, 2020.
He had been in the Indian Navy for 28 years at various levels
in various capacities and has achieved in depth knowledge
of all aspects of Administration and Logistics Management.
He  has  been  conferred  President  Gold  Medal  for  overall
outstanding best officer in Naval Academy.

Details of other Directorship/Committee Membership held
by him in other Companies are as follows:

Directorship:

Mr.  Vinod  Vaish  holds  Directorship  in  Pearl  Apparel
Fashions Limited.

Committee Membership:

Since  he  has  resigned  from  the  Board  of  the  Company,
consequently he has ceased to be member in the Committees
of the Board of the Company.

None of the Directors and Key Managerial Personnel of the
Company,  or  their  relatives,  is  interested,  financially  or
otherwise, in this Resolution.

Your Directors recommend the passing of the resolution at
Item no. 8 as an Ordinary Resolution.

Statement Pursuant to Section II of Part II of Schedule V of
the Companies Act, 2013, is provided below:

TTTTTHHHHHE SE SE SE SE STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNT PT PT PT PT PUUUUURRRRRSSSSSUUUUUAAAAANNNNNT TT TT TT TT TO SO SO SO SO SECECECECECTTTTTIIIIIOOOOON IN IN IN IN II OI OI OI OI OF PF PF PF PF PAAAAARRRRRT IT IT IT IT II OI OI OI OI OF SF SF SF SF SCCCCCHHHHHEEEEEDDDDDUUUUULLLLLE V OE V OE V OE V OE V OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNIIIIIEEEEESSSSS
AAAAACCCCCTTTTT, 2013
, 2013
, 2013
, 2013
, 2013
I.I.I.I.I. GGGGGEEEEENNNNNEEEEERRRRRAAAAAL IL IL IL IL INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON:N:N:N:N:

1. Nature of industry

2. Date or expected date of
commencement of
commercial production

3.

date 

In case of new companies,
expected 
of
commencement of activities as
per  project  approved  by
financial 
institutions
appearing in the prospectus

4.

Financial performance based
on given indicators

Pearl  Global  Industries  Limited  is  engaged  in  manufacture  and  exports  of
Readymade Garments. Garment and Textile Industries plays a major role in the
economy of the country. Indian garment and textile industry is the second largest
after  agriculture  in  the  country  in  terms  of  employment  generation.  Indian
industry currently generates employment to more than 45 million people directly
and 60 million people indirectly. The Industry contributes approximately 5% to
India's gross domestic product (GDP) and contributes to nearly 30% of the total
exports.

The Company has large installed capacity for apparel manufacturing with state-
of-the-art machinery and work process for supplying high quality products to
Customers and with the continuous up-gradation of manufacturing facilities,
the Company shall record further increase in Turnover and Profits in future years.

The date of commencement of commercial production (in erstwhile Pearl Global
Limited, since merged with the Company) was 7th December, 1988.

Not Applicable

The gross income of the Company stood at ` 858.72 Crore. The Profit before
Tax for the year is ` 10.90 Crore as against ` 31.85 Crore last year. The Company
managed to have PAT of ` 5.01 Crore.

Notice (contd...)

5.

Foreign investments or
collaborators, if any

Pearl Global Industries Limited     Annual Report 2019-20

13

The Company has no foreign collaboration.
Apart from holding 33,81,473 equity shares of ` 10/- each of your Company by
126 NRI/FPI/ Members/Folios representing approx 15.6088% of the total paid
up Capital of the Company as on 31st March, 2020, there is no other foreign
investment in the Company.

ilesh Kuuuuummmmmaaaaarrrrr
ilesh K
MMMMMrrrrr. Sh. Sh. Sh. Sh. Shaaaaailesh K
ilesh K
ilesh K

MMMMMrrrrr. V. V. V. V. Viiiiinononononod Vd Vd Vd Vd Vaaaaaishishishishish

IIIIII.I.I.I.I.

IIIIINNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON AN AN AN AN ABBBBBOOOOOUUUUUT TT TT TT TT THHHHHE AE AE AE AE APPPPPPPPPPOOOOOIIIIINNNNNTTTTTEEEEEEEEEE:::::

IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioionnnnn

1. Background Details

MMMMMrrrrr. U. U. U. U. Ummmmmaaaaa
ShShShShShaaaaannnnnkakakakakar Ka
r Kauuuuushshshshshikikikikik
r Ka
r Ka
r Ka
Mr.  Uma  Shankar  Kaushik,
aged  about  47  years,  holds
Bachelor  Degree  in  Arts
from  Delhi  University  and
Executive  Post  Graduate
Diploma in HR & Personnel
Management  from  IMT
Ghaziabad and having more
than  21  years  experience  in
the  field  of  the  HR  and
Administration.

2. Past Remuneration

`  1,87,528/-  per  month,  as
Assistant  Vice-President
(HR & Admin)

Mr.  Shailesh  Kumar,  aged
about  51  years,  holds
Bachelor  degree  in  Science
from  Magadh  University,
Post  Graduate  Diploma  in
Personnel  Management  &
Industrial  Relations  from
LNMI  Patna  and  Diploma
in  Labour  Laws  with
Administrative  Law  from
Annamalai  University  and
having more than 26 years of
experience in the field of HR
and Personnel Management
and 
Laws
Labour 
Compliances.

` 1,50,000/- per month, as
DGM (HR)

3. Recognition or Awards

NIL

NIL

4.

Job  Profile  and  their
Suitability

Mr.  Uma  Shankar,  Whole
Time Director shall manage
the  day-to-day  affairs  of
woven  division  of  the
Company and shall also carry
out all duties and functions
subject  to  the  supervision,
control and directions of the
Board  of  Directors  of  the
Company and shall perform
such other duties and services
as shall from time to time be
entrusted  to  him  by  the
Board  of  Directors  of  the
Company."

Mr. Shailesh Kumar, Whole
Time Director shall manage
the day-to-day affairs of the
Knits  division  of  the
Company  and  shall  also
carry  out  all  duties  and
functions  subject  to  the
supervision,  control  and
directions  of  the  Board  of
Directors  of  the  Company
and shall perform such other
duties  and  services  as  shall
from  time  to  time  be
entrusted  to  him  by  the
Board  of  Directors  of  the
Company."

Mr.  Vinod  Vaish,  aged
about 61 years, is a Bachelor
of  Science  and  Long
Logistics Management. He
had  been  in  the  Indian
Navy for 28 years at various
levels  in  various  capacities
and  has  achieved  in  depth
knowledge of all aspects of
Administration 
and
Logistics Management.

` 1,36,998/- Per Month

President  Gold  Medal  for
overall  outstanding  best
officer in Naval Academy.

Mr.  Vinod  Vaish  was
heading  Administration
and  HR  functions  of  the
Company.

14

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

5. Remuneration Proposed

Allowance:

Basic  Pay:  `  80,000/-  Per
Month
House  Rent  Allowance:
` 40,000/- Per Month
Special 
` 30,000/- Per Month
Provident Fund & Gratuity:
As per Company's rules.
Reimbursement  of  actual
of
business 
Conveyance 
including
Driver.

expenses 

Allowance:

Basic  Pay:  `  1,03,334/-  Per
Month
House  Rent  Allowance:
` 51,667/- Per Month
Special 
` 30,927/- Per Month
Conveyance:  `  1,600/-  Per
month
Provident Fund & Gratuity:
As per Company's rules.
Reimbursement  of  actual
of
business 
Conveyance 
including
Driver  and  Entertainment
reimbursement.

expenses 

Allowance:

Basic  Pay:  `  68,890/-  Per
Month
House  Rent  Allowance:
` 34,440/- Per Month
Special 
` 44,489/- Per Month
Provident  Fund 
Gratuity: 
Company's rules
A  Company  maintained
Car with Driver for official
purpose, Mobile Phone and
also 
for
entitled 
reimbursement  of  actual
expenses for business of the
Company.

and
per

As 

6. C o m p a r a t i v e
Remuneration profile with
respect to industry, size of
the  company  profile  of
position and person

7. Pecuniary  relationship
directly or indirectly with
the  company  or  with  the
managerial  personnel,  if
any

Arvind Limited
Period: 2018-19
Turnover: ` 6,539.81 Crore

Kitex Garments Ltd
Period:- 2018-19
Turnover: ` 629.26 Crore

Managerial Personnel:
Whole-Time Director:
Annual 
Managerial
Remuneration: ` 3.64 Crore

Managerial Personnel:
Whole-Time Director
Annual 
Remuneration:
` 17.81 Lakh

Managerial

Pecuniary  Relationship  other  than  Remuneration  proposed  above,  is  NIL.  No
relationship with Managerial Personnel. They do not hold any Share in the Company.

IIIIIIIIIII.I.I.I.I. OOOOOTTTTTHHHHHEEEEER IR IR IR IR INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON:N:N:N:N:

1. Reasons of loss or inadequate

profits
Steps taken or proposed to be
undertaken for improvements

The Readymade Garments Export Industry had yet another tough year where
profitability was low due to withdrawal of Government incentives.
The Company is laying special focus on technological up-gradation, lesser
breakdown  time,  use  labour  saving  devices,  training  of  managers,  supervisors
and operators. Besides, the Company is also outsourcing manufacturing from
low cost destinations. Maintaining quality, reducing cost with better productivity
will help the Company to operate profitably.
Expected increase in productivity The Sales Turnover of your Company during the year 2019-20 was ` 858.72
and profits in measurable terms Crore. The Company's PAT stood at ` 5.01 Crore during 2019-20.

2.

3.

Your Company has since identified and prioritized its targets and has been gearing
up to face the perceived challenges due to and further enhance its presence in the
International Markets.

Pearl Global Industries Limited     Annual Report 2019-20

15

Notice (contd...)

IIIIIVVVVV..... DDDDDIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEESSSSS:::::

Disclosures in the Board of Directors' report under the heading 'Corporate Governance' included in Annual Report
2019-20: The requisite details of remuneration etc. of Directors are included in the Corporate Governance Report,
forming part of the Annual Report of FY 2019-20 of the Company. The Company has no policy for stock option,
pension, and performance linked incentives.

sactioioioioionnnnnsssss:::::
sact
. 9: RRRRRelelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttty ty ty ty ty trrrrraaaaannnnnsact
sact
. 9:
IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 9:
. 9:
sact
. 9:

The Audit Committee and Board of Directors of the Company have, in their meetings held on September 14, 2020,
approved a proposal for entering into the following related party transactions for the financial year 2021-22:

me of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy
me of R
SlSlSlSlSl..... NNNNNaaaaame of R
me of R
me of R
NNNNNooooo.....

e ofe of
e ofe of
NNNNNaaaaatttttuuuuurrrrre of
rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp

1. Norp Knit Industries Limited

Subsidiary

he Dirrrrreeeeectctctctctooooor or or or or orrrrr
he Di
he Di
me of t
NNNNNaaaaame of t
me of t
me of the Di
he Di
me of t
KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel
, if annnnnyyyyy
, if a
, if a
ho is relelelelelaaaaattttteeeeeddddd, if a
ho is r
ho is r
wwwwwho is r
, if a
ho is r
Mr. Deepak Seth
Mr. Pulkit Seth
Mr. Anil Nayar

2. PT Pinnacle Apparels

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth

3. Pear Global (HK) Limited

Wholly owned Mr. Deepak Seth
subsidiary

Mr. Pulkit Seth
Mr. Abhishek Goyal

4. Pearl Global Fareast Limited

Wholly owned Mr. Deepak Seth
subsidiary

Mr. Pulkit Seth

sactioioioioionnnnnsssss
sact
sact
NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact
sact

Purchase of Goods

Sale of Goods

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Other supporting services

Purchase of Goods

Sale of Goods

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Purchase of Goods

Sale of Goods

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Other supporting services

Purchase of Goods

Sale of Goods

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Other supporting services

AAAAAmoumoumoumoumounnnnnttttt
(((((````` i i i i innnnn
CCCCCrrrrrooooorrrrre)e)e)e)e)
300.00

25.00

0.25

12.00

1.00

1.50

15.00

1.00

0.10

2.00

2.00

10.00

250.00

1.50

7.50

30.00

15.00

10.00

60.00

0.50

2.50

1.00

1.50

16

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

SlSlSlSlSl..... NNNNNaaaaame of R
me of R
me of R
me of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy
me of R
NNNNNooooo.....

NNNNNaaaaatttttuuuuurrrrre of
e ofe of
e ofe of
rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp

NNNNNaaaaame of t
me of t
me of t
he Di
he Di
he Dirrrrreeeeectctctctctooooor or or or or orrrrr
me of the Di
me of t
he Di
KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel
wwwwwho is r
ho is r
ho is r
ho is relelelelelaaaaattttteeeeeddddd, if a
, if a
, if a
, if annnnnyyyyy
ho is r
, if a

NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact
sact
sact
sactioioioioionnnnnsssss
sact

5. DSSP Global Limited

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth

6. PDS Multinational Fashions

Limited

7. Norwest Industries Limited

Enterprise over Mr. Deepak Seth
KMP has
significant
influence

Enterprise over Mr. Deepak Seth
KMP has
significant
influence

8. Pearl Grass Creations Limited

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth

Purchase of Goods

Sale of Goods

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Sale of Goods

Sale of Samples

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Purchase of Goods

Sale of Goods

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

SAP Facilities Charges

9. Prudent Fashions Limited

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth

Sale of Goods

Sale of Samples

10. Vin Pearl Global Vietnam

Limited

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Sale of Goods

Sale of Samples

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

AAAAAmoumoumoumoumounnnnnttttt
(((((````` i i i i innnnn
CCCCCrrrrrooooorrrrre)e)e)e)e)
10.00

25.00

0.10

1.00

1.00

1.00

1.00

1.00

1.00

1.00

1.00

6.00

6.00

1.00

1.00

0.25

1.00

1.00

0.10

1.00

1.00

5.00

1.00

0.25

1.00

1.00

Pearl Global Industries Limited     Annual Report 2019-20

17

Notice (contd...)

SlSlSlSlSl..... NNNNNaaaaame of R
me of R
me of R
me of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy
me of R
NNNNNooooo.....

NNNNNaaaaatttttuuuuurrrrre of
e ofe of
e ofe of
rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp

11. Pearl Global F.Z.E

Step down
subsidiary

NNNNNaaaaame of t
me of t
me of t
he Di
he Di
he Dirrrrreeeeectctctctctooooor or or or or orrrrr
me of the Di
me of t
he Di
KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel
wwwwwho is r
ho is r
ho is r
ho is relelelelelaaaaattttteeeeeddddd, if a
, if a
, if a
, if annnnnyyyyy
ho is r
, if a

Mr. Deepak Seth

NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact
sact
sact
sactioioioioionnnnnsssss
sact

Sale of Goods

Sale of Samples

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

12. PGIC Investment Limited

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth

Sale of Goods

Sale of Samples

13. Pearl Global (Chang Zhou)
Textile Technology Co. Ltd.

Step down
subsidiary

-

14. Pearl Global Vietnam Co. Limited Step down
subsidiary

Mr. Pulkit Seth

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Sale of Goods

Sale of Samples

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

Purchase of Goods

Sale of Goods

SAP Facilities Charges

Expenses incurred by them on
our behalf

Expenses paid by us on their
behalf

AAAAAmoumoumoumoumounnnnnttttt
(((((````` i i i i innnnn
CCCCCrrrrrooooorrrrre)e)e)e)e)
1.00

1.00

0.10

1.00

1.00

1.00

1.00

0.10

1.00

1.00

1.00

1.00

0.20

1.00

1.00

10.00

30.00

1.00

1.00

1.00

Mr. Deepak Seth, Chairman, Mr. Pulkit Seth, Managing Director, Mrs. Shifalli Seth, Whole-Time Director, and Mrs.
Payel Seth are relatives.

Mr. Pulkit Seth is member of Norp Knit Industries Limited, PT Pinnacle Apparels and Prudent Fashions Limited.

Mr. Deepak Seth is member of Norp Knit Industries Limited and Prudent Fashions Limited.

Your Directors recommend the passing of the resolution at Item no.9 as an Ordinary Resolution.

None of the Directors or Key Managerial Personnel or their relatives except as disclosed above are interested in this resolution.

Place: Gurugram
Date: October 07, 2020

By order of the Board of Directors
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd
l Glo
for PPPPPeaeaeaeaearrrrrl Glo
l Glo
l Glo

(S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll)))))
CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy

18

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

-1 to to to to to the Nhe Nhe Nhe Nhe Notototototiciciciciceeeee:::::
-1 t
AAAAAnnnnnnexnexnexnexnexuuuuurrrrreeeee-1 t
-1 t
-1 t

DDDDDEEEEETTTTTAAAAAIIIIILLLLLS OS OS OS OS OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRS SS SS SS SS SEEEEEEEEEEKKKKKIIIIINNNNNG AG AG AG AG APPPPPPPPPPOOOOOIIIIINNNNNTTTTTMMMMMEEEEENNNNNT/RT/RT/RT/RT/REEEEE-----AAAAAPPPPPPPPPPOOOOOIIIIINNNNNTTTTTMMMMMEEEEENNNNNT AT AT AT AT AT TT TT TT TT THHHHHEEEEE
FFFFFOOOOORRRRRTTTTTHHHHHCCCCCOOOOOMMMMMIIIIINNNNNG AG AG AG AG ANNNNNNNNNNUUUUUAAAAAL GL GL GL GL GEEEEENNNNNEEEEERRRRRAAAAAL ML ML ML ML MEEEEEEEEEETTTTTIIIIINNNNNGGGGG

[Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard-2]

IIIIIttttteeeeem nom nom nom nom no. 2: M. 2: M. 2: M. 2: M. 2: Mrsrsrsrsrs. Sh. Sh. Sh. Sh. Shifififififaaaaalllllllllli Si Si Si Si Seteteteteth (Dh (Dh (Dh (Dh (DIIIIIN 01388430)
N 01388430)
N 01388430)
N 01388430)
N 01388430)

Age
Qualifications

: 39 Years
: Bachelor of Science in Business Administration from University of Bradford,

Experience (including expertise in
specific functional area) / Brief resume

U.K.

: She has varied exposure in Garments and Textiles Industry. She is whole-
Time  Director  of  the  Company  and  heading  Design  &  Product
Development functions since 2012. She is having International experience
in trading, marketing of readymade garments and knowledge of Southeast
Asia region.

Date of first appointment on the Board : 19th January, 2012
Shareholding in the Company as on
31st March, 2020
Directorships and Committee
memberships held in other companies
as on 31st March, 2020

: 2,01,478 Equity Shares

CoCoCoCoCommmmmpppppaaaaannnnnies/B
ies/B
ies/B
ies/Booooodddddies Co
ies Co
ies Co
ies Corprprprprpooooorrrrraaaaattttte)e)e)e)e)
ies/B
ies Co

: DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip (p (p (p (p (exexexexexclclclclcludududududiiiiinnnnng Fg Fg Fg Fg Fooooorrrrreigeigeigeigeignnnnn MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in Co
n Con Co
n Co
n Commmmmmmmmmitititititttttteeeeeeseseseses

Inter-se relationships between Directors,
Manager and other Key Managerial
Personnel
No. of Board Meetings attended during
the Financial year 2019-20
Terms and conditions of re-appointment
Details of last drawn remuneration and
proposed remuneration

Pearl Global Industries Limited
PS Arts Private Limited
SBUYS E-Commerce Limited

Member of Finance Committee
-
-

: Wife of Mr. Pulkit Seth; and daughter in-Law of Mr. Deepak Seth

: 1 out of 4

: Mrs. Shifalli Seth has been appointed as Director, liable to retire by rotation.
: Last drawn remuneration: ` 6.25 Lakh per month.

Proposed: Nil

Mrs. Shifalli Seth, the retiring Director, being eligible, offers herself for re-appointment. The Board of Directors of your
Company propose to appoint Mrs. Shifalli Seth as a Director, liable to retire by rotation and therefore this Resolution is
recommended for approval of the Shareholders of the Company.

None of the Directors & Key Managerial Personnel, except Mrs. Shifalli Seth, herself, Mr. Deepak Seth, Mr. Pulkit Seth
and Mrs. Payel Seth, being relatives, are interested, whether directly or indirectly, in this Resolution.

Your Directors recommend the passing of the resolution at Item no. 2 as an Ordinary Resolution.

ika Bhhhhhuuuuupppppaaaaatttttkakakakakar (Dr (Dr (Dr (Dr (DIIIIIN 08712718)
N 08712718)
N 08712718)
ika B
IIIIIttttteeeeem nom nom nom nom no.3 : M.3 : M.3 : M.3 : M.3 : Mrsrsrsrsrs. M. M. M. M. Madadadadaduuuuulllllika B
ika B
N 08712718)
N 08712718)
ika B

Age
Qualifications
Experience (including expertise in
specific functional area) / Brief resume

: 64 years
: Degree in B.Sc., Post Graduate Diploma in Dietetics and B.Ed.
: With over 30 years of experience in academics and held position as Principal
in  various  educational  institutions  and  having  experience  in  general
management.

Pearl Global Industries Limited     Annual Report 2019-20

19

Notice (contd...)

Date of first appointment on the Board : 18th March, 2020
Shareholding in the Company as on
31st March, 2020
Directorships and Committee
memberships held in other companies
as on 31st March, 2020

: NIL

: DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip  (p  (p  (p  (p  (exexexexexclclclclcludududududiiiiinnnnnggggg
ies Corprprprprpooooorrrrraaaaattttte)e)e)e)e)
ies Co
BBBBBooooodddddies Co
ies Co
ies Co

n Commmmmmmmmmitititititttttteeeeeeseseseses
n Con Co
n Co
MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in Co

Inter-se relationships between Directors,
Manager and other Key Managerial
Personnel
No. of Board Meetings attended during
the Financial year 2019-20
Terms and conditions of appointment

Details of last drawn remuneration and
proposed remuneration

Pearl Global Industries Limited

Chairperson of CSR Committee, and
Member of Audit Committee

: Not related to any Director/ Key Managerial Personnel.

: Nil

: As per resolution at Item No.3 of the Notice convening this meeting read
with explanatory statement thereto, Mrs. Madhulika Bhupatkar is proposed
to be appointed as an Independent Director.

: Last Drawn Remuneration: NIL

Proposed Remuneration: NIL except sitting fee (presently ` 10,000/- per
meeting of the Board) as may be decided by the Board from time to time.

IIIIIttttteeeeem nom nom nom nom no.4 & 6 M
.4 & 6 M
.4 & 6 M
.4 & 6 Mrrrrr. U. U. U. U. Ummmmma Sha Sha Sha Sha Shaaaaannnnnkakakakakar Ka
r Ka
r Ka
r Kauuuuushshshshshik (Dik (Dik (Dik (Dik (DIIIIIN 06867819)
N 06867819)
N 06867819)
N 06867819)
.4 & 6 M
r Ka
N 06867819)

Age
Qualifications

Experience (including expertise in
specific functional area)/Brief resume

: 47 years
: Bachelor Degree in Arts from Delhi University and Executive Post Graduate

Diploma in HR & Personnel Management from IMT Ghaziabad
: Having more than 21 years experience in the field of the HR and

Administration and currently heading the HR and Administration functions
of the Company.

Date of first appointment on the Board : 28th July, 2020
Shareholding in the Company as on
31st March, 2020
Directorships and Committee
memberships held in other companies
as on 31st March, 2020

: Nil

n Commmmmmmmmmitititititttttteeeeeeseseseses
n Con Co
n Co
: DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip (p (p (p (p (exexexexexclclclclcludududududiiiiinnnnng Fg Fg Fg Fg Fooooorrrrreigeigeigeigeignnnnn MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in Co

ies Corprprprprpooooorrrrraaaaattttte)e)e)e)e)
ies Co
ies/Booooodddddies Co
ies Co
ies/B
CoCoCoCoCommmmmpppppaaaaannnnnies/B
ies/B
ies Co
ies/B

Inter-se relationships between Directors,
Manager and other Key Managerial
Personnel
No. of Board Meetings attended during
the Financial year 2019-20
Terms and conditions of appointment

Details of last drawn remuneration and
proposed remuneration

PKW Associates Private Ltd

NIL

: Not related to any Director/ Key Managerial Personnel.

: Not Applicable

: As per resolution at Item No. 4&5 of the Notice convening this meeting
read  with  explanatory  statement  thereto,  Mr.  Uma  Shankar  Kaushik  is
proposed to be appointed as Director and Whole-Time Director.
: Last drawn remuneration: ` 1,87,528/- per month, as Assistant Vice-

President (HR & Admin)
Proposed remuneration: ` 1,87,528 per month

20

Pearl Global Industries Limited     Annual Report 2019-20

Notice (contd...)

ilesh Kuuuuummmmmaaaaar (Dr (Dr (Dr (Dr (DIIIIIN 08897225)
N 08897225)
N 08897225)
ilesh K
.5 & 7 Mrrrrr. Sh. Sh. Sh. Sh. Shaaaaailesh K
ilesh K
.5 & 7 M
IIIIIttttteeeeem nom nom nom nom no.5 & 7 M
.5 & 7 M
N 08897225)
N 08897225)
ilesh K
.5 & 7 M

Age
Qualifications

Experience (including expertise in
specific functional area)/Brief resume

: 51 years
: Bachelor degree in Science from Magadh University, Post Graduate Diploma
in Personnel Management & Industrial Relations from LNMI Patna and
Diploma  in  Labour  Laws  with  Administrative  Law  from  Annamalai
University.

: Having more than 26 years of experience in the field of HR and Personnel
Management  and  Labour  Laws  Compliances  and  currently  heading  HR
functions of Knits division of the Company.

: Nil

: Nil

Date of first appointment on the Board : 7th October, 2020
Shareholding in the Company as on
31st March, 2020
Directorships and Committee
memberships held in other companies
as on 31st March, 2020
Inter-se relationships between Directors,
Manager and other Key Managerial
Personnel
No. of Board Meetings attended during
the Financial Year 2019-20
Terms and conditions of appointment

: Not Applicable

: Not related to any Director/ Key Managerial Personnel.

: As per resolution at Item No. 5&7 of the Notice convening this meeting
read with explanatory statement thereto, Mr. Shailesh Kumar is proposed
to be appointed as Director and Whole-Time Director.

Details of last drawn remuneration and
proposed remuneration

: Last drawn remuneration: ` 1,50,000/- per month, as DGM-HR (Knits)

Proposed remuneration: ` 1,50,000 per month

Place: Gurugram
Date: October 07, 2020

By order of the Board of Directors
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd
l Glo
for PPPPPeaeaeaeaearrrrrl Glo
l Glo
l Glo

(S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll)))))
CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy

Pearl Global Industries Limited     Annual Report 2019-20

21

Directors’ Report

To the Members,

Your Directors are pleased to present the 31st Annual Report and Audited Financial Statements for the financial year ended
31st March 2020, together with the Auditors’ Report thereon.

WWWWWOOOOORRRRRKKKKKIIIIINNNNNG RG RG RG RG REEEEESSSSSUUUUULLLLLTS OTS OTS OTS OTS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY
PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Income from operations
Other Income
Profit before Tax
Provision for Tax
Profit After Tax
Other comprehensive income
Total comprehensive income

SSSSSTTTTTAAAAATTTTTE OE OE OE OE OF TF TF TF TF THHHHHE AE AE AE AE AFFFFFFFFFFAAAAAIIIIIRRRRRS OS OS OS OS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY

During the year, your Company’s consolidated income from
operations  was  `  1,685.13  as  against  `  1,757.50  Crore  in
the previous year and Net Profit ` 21.72 Crore as against
Net Profit ` 67.11 Crore in the previous year.

The income from operations for the year under review for
the Company on Standalone basis was ` 825.33 Crore as
compared to ` 840.26 Crore in the previous year and Net
Profit ` 5.01 Crore as compared to Net Profit ` 21.50 Crore
in the previous year.

Pearl Global Industries Limited (PGIL) is one of the India’s
largest  listed  garment  exporters,  manufacturing  from
multiple sourcing regions within India and countries within
South Asia. A preferred long-term vendor to most leading
global  brands,  we  are  amongst  the  leading  player  in  our
Industry.  Our  mainstay  business  is  to  create  value  from
competitively  manufacturing  and  exporting  fashion
garments to leading global brands.

Our product range includes knits, woven and bottoms (basic
and  complex  designs)  across  men,  women  and  kids  wear
segments.  We  have  a  well  diversified  and  de-risked
manufacturing base across India, Indonesia, Bangladesh and
Vietnam. We have a total capacity to manufacture around
6.25 million garments per month (75 million garments per
annum  including  own  and  outsourced  facilities).  Our
revenue  structure  is  primarily  export  based,  with  a  major
contribution coming from exports to the United States. We
provide  total  supply  chain  solutions  to  customers-value
retailers and high end fashion brand, retails in the United
States and Europe. Our business model enables us to offer
superior quality products across various countries, catering

(` in Crore)

SSSSStttttaaaaandndndndndaaaaalololololonenenenene

CoCoCoCoConnnnnsososososolllllidididididaaaaattttteeeeeddddd

2019-20
2019-20
2019-20
2019-20
2019-20
825.33
33.38
10.90
5.89
5.01
(5.57)
(0.56)

2018-19
2018-19
2018-19
2018-19
2018-19
840.26
26.30
31.85
10.35
21.50
1.32
22.82

2019-20
2019-20
2019-20
2019-20
2019-20
1,685.13
49.06
31.23
9.51
21.72
21.74
43.46

2018-19
2018-19
2018-19
2018-19
2018-19
1,757.50
33.93
82.94
15.83
67.11
14.73
81.84

to  all  kinds  of  consumers.  Our  esteemed  global  clientele
includes premium retailers in USA and Europe, including
GAP, Banana Republic, Kohl’s, Macy, Joe Fresh, Walmart,
M&S,  Target  Australia,  Zara,  Ralph  Lauren,  Next,  Tom
Tailor, Old Navy, Muji among others.

We strive to be the most preferred vendor to the top global
apparel  brands  and  be  ranked  amongst  the  top  garment
manufacturers  in  the  world,  in  terms  of  quality,  service
standards and ultimately-customers satisfaction, keeping in
line with our broader vision.

We are geographically well positioned to produce from the
most cost effective supply bases in Asia, keeping us highly
competitive  and  relevant  to  our  customers.  We  expect  to
maintain and step up our profitability from superior value
added  products  and  meticulous  management  of  our  costs
and processes.

MMMMMAAAAATTTTTEEEEERRRRRIIIIIAAAAAL  IL  IL  IL  IL  IMMMMMPPPPPAAAAACCCCCT  OT  OT  OT  OT  OF  CF  CF  CF  CF  COVOVOVOVOVIIIIIDDDDD-19  P
-19  PAAAAANNNNNDDDDDEEEEEMMMMMIIIIICCCCC
-19  P
-19  P
-19  P
OOOOON CN CN CN CN COOOOOMMMMMPPPPPAAAAANNNNNYYYYY

The Company’s manufacturing facilities remained shut from
March 23, 2020 due to lockdown and partially re-opened
w.e.f.  May  04,  2020,  which  has  impacted  its  operations
during  April  and  May  2020.  The  Company  has  restarted
operations of factories considering order book and available
workforce, since May 04, 2020, adhering to the safety norms
prescribed by Government of India.

April-June 2020 being lockdown months, the revenues and
profitability  of  the  Company  are  likely  to  be  adversely
impacted.  As  the  business  situation  is  very  dynamic,  the
Company is closely monitoring it. Though we do hope the
business  situation  should  normalise  during  3rd  and  4th
quarter.

22

Pearl Global Industries Limited     Annual Report 2019-20

Directors’ Report (contd...)

The Company’s capital and Banking facilities remain intact.
There is no liquidity concern as we have sufficient unutilised
Banking  limits  available.  Further  Banks  have  offered
additional limits.

With  the  virus  now  also  affecting  and  disrupting  global
supply chains and economy for almost 3 to 6 months now,
the  situation  is  having  a  severe  implication  on  the  Indian
economy as well.

The areas that would face the crises created by COVID-19
pandemic are:
i) Labour force and employment.
ii)

Import  &  Exports  of  raw  material  and  readymade
garments.

iii) Cash flow constraints.
iv) Supply chain disruption.
v) Consumer sentiment.

DDDDDIIIIIVVVVVIIIIIDDDDDEEEEENNNNNDDDDD

The Board of Directors has not recommended any dividend
for the financial year 2019-20.

TTTTTRRRRRAAAAANSNSNSNSNSFEFEFEFEFER TR TR TR TR TO GO GO GO GO GEEEEENNNNNEEEEERRRRRAAAAAL RL RL RL RL REEEEESSSSSEEEEERRRRRVVVVVEEEEESSSSS

The  Board  of  Directors  has  decided  to  retain  the  entire
amount  of  profits  for  the  financial  year  2019-20  in  the
Retained Earnings.

DDDDD IIIII RRRRR E CE CE CE CE CTTTTTOOOOO RRRRR S  A
S  A
S  A
S  ANNNNN D  KD  KD  KD  KD  K EEEEEY  MY  MY  MY  MY  MAAAAA NNNNNAAAAA GGGGG EEEEE RRRRR IIIIIAAAAA LLLLL
S  A
PPPPPEEEEERRRRRSSSSSOOOOONNNNNNNNNNEEEEELLLLL

Mr. Vinod Vaish has tendered his resignation from the Board
of  the  Company  with  effect  from  April  30,  2020,  due  to
personal  reasons.  The  Board  of  Directors  have  taken  on
record  its  appreciation  through  Circular  resolution  dated
May  20,  2020,  on  significant  contributions  made  by  Mr.
Vinod Vaish, during his tenure as Whole-Time Director of
the Company.

In compliance with Regulation 17(1)(a) of the SEBI (Listing
Obligations  and  Disclosure  Requirements)  Regulations,
2015, the Board of Directors have, on the recommendation
of Nomination and Remuneration Committee, appointed
Mrs. Madhulika Bhupatkar, as an additional Director in the
category of Independent Women Director, with effect from
March 18, 2020. Appointment of Mrs. Bhupatkar is subject
to  approval  of  shareholders  in  the  forthcoming  Annual
General Meeting. Necessary Resolution for her appointment
as Independent Women Director is proposed in the Notice
calling  31st  Annual  General  Meeting  for  approval  of  the
Shareholders.

The Company has received necessary declaration from each
Independent Director of the Company that the Independent
Directors meet with  the criteria  of  their  Independence  as
laid down in Section 149(6) of the Companies Act, 2013
and  Regulation  25(8)  of  SEBI  (Listing  Obligations  and
Disclosure Requirements) Regulations, 2015.

In accordance with the provisions of the Companies Act,
2013 and the Articles of Association of your Company, Mrs
Shifalli Seth, Director, would retire by rotation at the ensuing
Annual General Meeting and being eligible, offer herself for
re-appointment.

The Board of Directors of your Company met four times
on  May  28,  2019,  August  13,  2019,  November  14,  2019,
and February 13, 2020 during the financial year 2019-20.

DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS' I' I' I' I' IDDDDDEEEEENNNNNTTTTTIIIIIFIFIFIFIFICCCCCAAAAATTTTTIIIIIOOOOON NN NN NN NN NUUUUUMMMMMBBBBBEEEEER (DR (DR (DR (DR (DIIIIIN)N)N)N)N)

The  following  are  the  Directors  Identification  Number
(DIN) of your Directors:

NNNNNaaaaam em em em em e

Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth
Mr. Anil Nayar

DDDDDIIIIINNNNN NNNNNaaaaam em em em em e

DDDDDIIIIINNNNN

- 00036080
- 00003021 Mr. Chittranjan Dua
- 00003044 Mr. Abhishek Goyal
- 01928855
- 01388430 Mr. Rajendra Kumar Aneja - 00731956
- 01390190 Mr. Vinod Vaish
- 01945795
(Till 30.04.2020)

Mrs. Madhulika Bhupatkar - 08712718 Mr. Uma Shankar Kaushik - 06867819

(From 28.07.2020)

Mr. Shailesh Kumar
(From 07.10.2020)

- 08897225

The  Board  of  Directors  has,  on  the  recommendation  of
Nomination and Remuneration Committee, at its meeting
held on July 28, 2020, appointed Mr. Uma Shankar Kaushik,
as  Additional  Director  and  Whole-Time  Director  of  the
Company with effect from July 28, 2020. Appointment of
Mr.  Kaushik  is  subject  to  approval  of  shareholders  in  the
forthcoming Annual General Meeting. Necessary Resolution
for his appointment as Director and Whole-Time Director
is  proposed  in  the  Notice  calling  31st  Annual  General
Meeting for approval of the Shareholders.

The  Nomination  and  Remuneration  Committee  at  its
meeting  held  on  September  24,  2020,  considered  and
recommended  the  candidature  of  Mr.  Shailesh  Kumar  to
appoint him as Director and Whole-Time Director of the
Company.  The  Board  of  Directors  has,  on  the
recommendation  of  the  Nomination  and  Remuneration
Committee, appointed Mr. Shailesh Kumar as Additional
Director and Whole-Time Director of the Company with
effect from October 07, 2020, at its meeting held on October
07, 2020. Appointment of Mr. Shailesh Kumar is subject to

Pearl Global Industries Limited     Annual Report 2019-20

23

Directors’ Report (contd...)

approval of shareholders in the forthcoming Annual General
Meeting.  Necessary  Resolution  for  his  appointment  as
Director  and  Whole-Time  Director  is  proposed  in  the
Notice calling 31st Annual General Meeting for approval of
the Shareholders.

Mr.  Raghav  Garg,  Chief  Financial  Officer  (CFO)  of  the
Company, has tendered his resignation from the office of
CFO  with  effect  from  June  30,  2020,  due  to  personal
reasons.  The  Board  of  Directors  have  taken  on  record  its
appreciation on the contributions made by him during his
tenure as CFO of the Company.

The  Board  of  Directors  has,  on  the  recommendation  of
Nomination and Remuneration Committee, appointed Mr.
Kashmir Singh Rathour as Chief Financial Officer of the
Company  in  place  of  Mr.  Raghav  Garg,  with  effect  from
July 28, 2020.

Mr. Rathour, aged about 49 years, holds Bachelor degree in
Science and MBA (Finance) from H.P. University, Shimla
and  having  more  than  20  years  experience  in  Finance  &
Accounts  as  well  as  Commercial  Operations  and  General
Administration,  Taxation,  Corporate  Affairs,  Strategic  &
Business Planning, Financial Planning, Budgeting,  Working
Capital Management, designing internal control systems, etc.

BBBBBOOOOOAAAAARRRRRD ED ED ED ED EVVVVVAAAAALLLLLUUUUUAAAAATTTTTIIIIIOOOOONNNNN

The Board of Directors has carried out an annual evaluation
of its own performance, committees and individual Directors
pursuant to the provisions of the Companies Act, 2013 and
Rules made there under.

The performance of the Board was evaluated by the Board
after seeking inputs from all the Directors on the basis of
the  criteria  such  as  the  Board  composition  and  structure,
effectiveness  of  Board  processes,  information  and
functioning, etc.

The performance of the committees was evaluated by the
Board after seeking inputs from the committee members on
the  basis  of  the  criteria  such  as  the  composition  of
committees, effectiveness of committee meetings, etc.

The  Board  and  the  Nomination  and  Remuneration
Committee  reviewed  the  performance  of  the  individual
Directors on the basis of the criteria such as the contribution
of  the  individual  Director  to  the  Board  and  committee
meetings  like  preparedness  on  the  issues  to  be  discussed,
meaningful  and  constructive  contribution  and  inputs  in
meetings, etc. In addition, the Chairman was also evaluated
on the key aspects of his role.

In a separate meeting of independent Directors, performance
of non-independent Directors, performance of the Board as
a whole and performance of the Chairman was evaluated,
taking  into  account  the  views  of  Executive  Directors  and
Non-Executive  Directors.  The  same  was  discussed  in  the
Board meeting that followed the meeting of the Independent
Directors,  at  which  the  performance  of  the  Board,  its
committees and individual Directors was also discussed.

NNNNNOOOOOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND RD RD RD RD REEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON PN PN PN PN POOOOOLLLLLIIIIICCCCCYYYYY

The Nomination and Remuneration Policy of the Company
is annexed herewith as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIII with this report and also
available  on  the  website  of  the  Company  at  http://
pearlglobal.com/investors/policy

IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL FIL FIL FIL FIL FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL CL CL CL CL COOOOONNNNNTTTTTRRRRROOOOOLLLLLSSSSS

The Company has in place adequate internal control system
commensurate  with  the  size,  scale  and  complexity  of
operations. During the year, such controls were tested and
no reportable material weakness in the design or operation
was observed.

AAAAAUUUUUDDDDDIIIIIT CT CT CT CT COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE

The Board of Directors in its meeting held on July 28, 2020,
have re-constituted the Audit Committee, consequent upon
resignation  of  Mr.  Vinod  Vaish,  from  the  Board  of  the
Company  and  inducted  Mrs.  Madhulika  Bhupatkar  as
member of the Committee. The current composition of the
Committee  comprises  four  Non-executive  Independent
Directors, namely Mr. Anil Nayar, Chairman, Mr. Abhishek
Goyal,  Mr.  Rajendra  Kumar  Aneja  and  Mrs.  Madhulika
Bhupatkar,  as  Members  of  the  Committee.  All  the
recommendations  made  by  the  Audit  Committee  were
accepted by the Board.

VVVVVIIIIIGGGGGIIIIIL ML ML ML ML MECECECECECHHHHHAAAAANNNNNIIIIISSSSSMMMMM

The  Company  has  set  up  a  Vigil  Mechanism,  which  also
incorporates  a  whistle  blower  policy  in  terms  of  Listing
Agreement/Regulations  made  by  the  SEBI.  Protected
disclosures  can  be  made  by  a  whistle  blower  through  an
e-mail, or dedicated telephone no. or a letter through to the
Vigilance  Officer  or  to  the  Chairman  of  the  Audit
Committee.  The  policy  on  vigil  mechanism  and  whistle
blower policy may be accessed on the Company’s website at
the link: http://pearlglobal.com/investors/policy

CCCCCOOOOORRRRRPPPPPOOOOORRRRRAAAAATTTTTE SE SE SE SE SOOOOOCCCCCIIIIIAAAAAL RL RL RL RL REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTYYYYY

The  Corporate  Social  Responsibility  Committee  of  the
Company has formulated a Corporate Social Responsibility

24

Pearl Global Industries Limited     Annual Report 2019-20

Directors’ Report (contd...)

Policy  (CSR  Policy)  indicating  the  activities  to  be
undertaken by the Company, which has been approved by
the Board.
The CSR Policy may be accessed on the Company’s website
at http://pearlglobal.com/investors/policy
Your Company has identified an area of education and health
care activities for the financial year 2019-20. The prescribed
CSR  amount  for  the  financial  year  2019-20  was  `  22.15
Lakh and which has been fully utilised.
The Annual Report on CSR activities is annexed herewith
as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIIIIII.

SSSSSUUUUUBBBBBSSSSSIIIIIDDDDDIIIIIAAAAARRRRRY CY CY CY CY COOOOOMMMMMPPPPPAAAAANNNNNIIIIIEEEEESSSSS
During the year under review, M/s SBUYS E-Commerce
Limited  has  become  wholly  owned  subsidiary  of  the
Company.
Pursuant to Section 129(3) of the Companies Act, 2013, a
statement  containing  the  salient  features  of  the  financial
statements  of  the  subsidiary  companies  is  attached  to  the
Financial Statements in Form AOC-1. The Company will
make  available  the  said  financial  statements  and  related
detailed information of the subsidiary companies upon the
request  by  any  member  of  the  Company.  These  financial

statements  will  also  be  kept  open  for  inspection  by  any
member at the Registered Office of the Company.
The  financial  statements  of  the  Company,  consolidated
financial statements along with the relevant documents and
separate  audited  accounts  in  respect  of  subsidiaries,  are
available on the website of the Company.
The Policy of determining material subsidiaries as approved
may  be  accessed  on  the  Company’s  website  at http://
pearlglobal.com/investors/policy

SSSSSTTTTTAAAAATTTTTUUUUUTTTTTOOOOORRRRRY AY AY AY AY AUUUUUDDDDDIIIIITTTTTOOOOORRRRRSSSSS
Pursuant to the provisions of Section 139 of the Companies
Act, 2013, M/s B.R. Gupta & Co. Chartered Accountants,
New  Delhi  (Regn.  No.  008352N)  were  appointed  as
Statutory Auditors of the Company, by the members of the
Company in their 28th Annual General Meeting held on 28th
September, 2017, for a period of five years, with effect from
financial year 2017-18.

SSSSSTTTTTAAAAATTTTTUUUUUTTTTTOOOOORRRRRY AY AY AY AY AUUUUUDDDDDIIIIITTTTTOOOOORRRRRSSSSS’ R’ R’ R’ R’ REEEEEPPPPPOOOOORRRRRTTTTT
The Auditors’ has given qualified opinion in the Report of
Consolidated  Financial  Statements  for  the  financial  year
ended  31st  March,  2020.  The  details  of  qualified  opinion
with explanation are given below:

AAAAAudududududitititititooooorsrsrsrsrs’ Co
’ Co
’ Co
’ Commmmmmememememennnnnt ot ot ot ot onnnnn
’ Co
ExExExExExppppplllllaaaaannnnnaaaaatttttioioioioionnnnn

Based  on  the  Management
Representation  given  above
and  the  Limited  Review
report  of  the  subsequent
period ended June 30, 2020 by
the  Component  Auditor,  it
appears that there may not be
any material adjustment in the
carrying value of Inventory in
the  consolidated  financial
statements  as  at  March  31,
2020.

AAAAAudududududitititititooooorsrsrsrsrs’ q’ q’ q’ q’ quuuuuaaaaalllllifieifieifieifieified od od od od opppppiiiiinnnnnioioioioionnnnn

ExExExExExppppplllllaaaaannnnnaaaaatttttioioioioion bn bn bn bn by ty ty ty ty the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd

The  inventories  are  carried  in  the
consolidated balance sheet at ` 26,387.33
Lakh (As at March 31, 2019: ` 23,632.17
Lakh).  In  one  of  the  subsidiary  of  the
Holding Company, the component auditor
of  its  subsidiary  has  reported  that  no
physical counting against inventories as at
March  31,  2020  was  conducted  by  them
due to the lockdown in Jakarta during the
outbreak  of  COVID-19  and  no  other
alternative procedures were performed. In
consequence they were unable to carry out
auditing  procedures  necessary  to  obtain
adequate assurance regarding the quantities
and condition of inventories of ` 2,542.30
Lakh  (Equivalent  US$  3,372,199),
appearing  in  the  consolidated  balance
sheet.  There  were  no  other  satisfactory
auditing procedures that they could adopt
to obtain sufficient evidence regarding the
existence and valuation of such inventories.

Management estimates that impact of Audit
qualification  is  NIL,  as  management  has
performed  complete  inventory  verification
and  sufficient  checks  and  controls  were
performed while valuing the inventory at 31st
March,  2020.  Further,  post  re-opening  of
lockdown,  Component  Auditor  have
performed limited review and also performed
all  necessary  checks  as  on  30th  June,  2020.
Component  Auditor  after  satisfying
themselves,  have  shared  interim  financial
statements  as  on  30th  June,  2020  without
making any adjustment on account of above
qualification. Also Component Auditor has
given  a  clean  review  report  stating  that
“nothing  has  come  to  our  attention  that
causes us to believe that the interim financial
statements  do  not  fairly  presents  in  all
material  respects,  the  interim  financial
position  as  at  30.6.20”.  In  view  of  above
management  believe  no  adjustment  is
required on account of above qualification.

Pearl Global Industries Limited     Annual Report 2019-20

25

Directors’ Report (contd...)

Further, the Auditor’s Report for the Standalone Financial
Statements do not contain any qualification, reservation or
adverse remark.

The  Auditors’  Reports  are  enclosed  with  the  financial
statements in this Annual Report.

SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRIIIIIAAAAAL AL AL AL AL AUUUUUDDDDDIIIIITTTTTOOOOORRRRR

The  Board  has  appointed  Mr.  Jayant  Sood,  Practising
Company  Secretary,  proprietor  of  M/s.  Jayant  Sood  &
Associates.,  to  conduct  Secretarial  Audit  for  the  financial
year 2019-20. The Secretarial Audit Report for the financial
year  2019-20  is  annexed  herewith  as  AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIIIIIIIIIII.  The
Secretarial Audit Report does not contain any qualification,
reservation or adverse remark.

IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL AL AL AL AL AUUUUUDDDDDIIIIITTTTTOOOOORRRRR

The  Board  has  appointed  M/s.  S.  S.  Kothari  Mehta  &
Company,  Chartered  Accountants,  New  Delhi  (FRN.
000756N), as Internal Auditor for the financial year 2019-
20.

CCCCCOOOOOSSSSST AT AT AT AT AUUUUUDDDDDIIIIITTTTTOOOOORRRRR

Maintainance  of  cost  records  as  specified  by  the  Central
Government under section 148(1) of the Companies Act,
2013 is not applicable to your Company.

EEEEEXXXXXTTTTTRRRRRAAAAACCCCCTS OTS OTS OTS OTS OF AF AF AF AF ANNNNNNNNNNUUUUUAAAAAL RL RL RL RL REEEEETTTTTUUUUURRRRRNNNNN

Pursuant  to  the  provisions  of  Section  92(3)  of  the
Companies  Act,  2013,  and  ruled  made  there  under,  as
amended, an Extract of Annual Return of the Company is
annexed herewith as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIVVVVV to this Report and also
available  on  the  Company's  website  at  http://
www.pearlglobal.com/investors/annual-return.

EEEEEXXXXXTTTTTEEEEENSNSNSNSNSIIIIIOOOOON ON ON ON ON OF AF AF AF AF AGGGGGMMMMM

The Registrar of Companies, NCT of Delhi and Haryana,
vide  its  Order  dated  07th  September,  2020  has  granted
extension of Two (2) months for holding Annual General
Meeting of the Company for the financial year ended 31st
March, 2020.

RRRRREEEEELLLLLAAAAATTTTTEEEEED PD PD PD PD PAAAAARRRRRTTTTTY TY TY TY TY TRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOONSNSNSNSNS

All related party transactions entered during the financial
year were in ordinary course of the business and on arm’s
length basis. No material related party transaction entered
during the financial year by the Company.

Members may refer to Note no.47 to the standalone financial
statements which sets out related party disclosures pursuant
to Ind AS-24.

A disclosure on related party, as required under Regulation
34(3) read with Schedule V of SEBI (Listing Obligations
and Disclosures Requirements) Regulations, 2015 is annexed
as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-VVVVV.

PPPPPAAAAARRRRRTTTTTIIIIICUCUCUCUCULLLLLAAAAARRRRRS OS OS OS OS OF LF LF LF LF LOOOOOAAAAANSNSNSNSNS, G, G, G, G, GUUUUUAAAAARRRRRAAAAANNNNNTTTTTEEEEEEEEEES AS AS AS AS ANNNNNDDDDD
IIIIINNNNNVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTSTSTSTSTS

Particulars  of  Loans,  guarantees  and  investments  covered
under Section 186 of the Companies Act, 2013 is annexed
as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-VIVIVIVIVI.

FIFIFIFIFIXXXXXEEEEED DD DD DD DD DEEEEEPPPPPOOOOOSSSSSIIIIITSTSTSTSTS

Your Company has not accepted any Fixed Deposits from
Public  or  Shareholders  during  the  year,  nor  has  any
unclaimed or unpaid deposits at the end of the financial year.

RRRRRIIIIISSSSSK MK MK MK MK MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT

The Company has implemented procedures and policies in
place for risk management including identifying risk which
may threaten the existence/operations of the Company.

DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS’ R’ R’ R’ R’ REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY SY SY SY SY STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT

Pursuant to the requirement under Section 134(5) of the
Companies  Act,  2013,  with  respect  to  Directors
Responsibility Statement, your Directors state that:

a)

b)

c)

d)

e)

in  the  preparation  of  the  annual  accounts  for  the
financial  year  ended  31st  March  2020,  the  applicable
accounting  standards  have  been  followed  along  with
proper  explanation  relating  to  material  departures.
There are no material departures from the same;

the Directors have selected such accounting policies and
applied  them  consistently  and  made  judgments  and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company
at the end of the financial year 31st March, 2020 and of
the profit and loss of the Company for that period;

the Directors have taken proper and sufficient care for
the  maintenance  of  adequate  accounting  records  in
accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and
for  preventing  and  detecting  fraud  and  other
irregularities;

the Directors have prepared the annual accounts on a
‘going concern’ basis;

the Directors have laid down internal financial controls
to be followed by the Company and that such internal
financial    controls  are  adequate  and  are  operating
effectively; and

26

Pearl Global Industries Limited     Annual Report 2019-20

Directors’ Report (contd...)

f )

the  Directors  have  devised  proper  systems  to  ensure
compliance with the provisions of all applicable  laws
and  that  such  systems  are  adequate  and  operating
effectively.

LLLLLIIIIISSSSSTTTTTIIIIINNNNNGGGGG

The shares of your Company are listed at BSE Limited and
National Stock Exchange of India Limited, Mumbai. The
listing fees to the Stock Exchanges for the year 2019-20 have
been paid.

RRRRREGEGEGEGEGIIIIISSSSSTTTTTRRRRRAAAAAR AR AR AR AR ANNNNND SD SD SD SD SHHHHHAAAAARRRRRE TE TE TE TE TRRRRRAAAAANSNSNSNSNSFEFEFEFEFERRRRR AAAAAGGGGGEEEEENNNNNTTTTT

Link  Intime  India  Pvt.  Ltd  is  Company’s  Registrars  and
Share  Transfer  Agent  (RTA)  as  common  agency  both  for
physical  and  demat  shares,  as  required  under  Securities
Contract (Regulation) Act, 1956. The detail of RTA forms
part of the Corporate Governance Report.

CCCCCOOOOORRRRRPPPPPOOOOORRRRRAAAAATTTTTE GE GE GE GE GOVOVOVOVOVEEEEERRRRRNNNNNAAAAANNNNNCCCCCEEEEE

Report on Corporate Governance along with the certificate
of  the  Auditors,  confirming  compliance  of  conditions  of
Corporate Governance as stipulated under Schedule V of
the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, forms part of the Annual report.

MMMMMAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT DT DT DT DT DIIIIISSSSSCUCUCUCUCUSSSSSSSSSSIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD ANNNNNAAAAALLLLLYSYSYSYSYSIIIIISSSSS

A  detailed  review  of  operations,  performance  and  future
outlook of the Company is given separately under the head
“Management Discussion and Analysis”.

BBBBBUUUUUSSSSSIIIIINNNNNEEEEESSSSSS RS RS RS RS REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY RY RY RY RY REEEEEPPPPPOOOOORRRRRTTTTT

As  per  Regulation  34(2)(f )  of  SEBI  (Listing  Obligations
and Disclosure Requirements) Regulations, 2015, a Business
Responsibility  Report  is  attached  and  forms  part  of  this
Annual Report.

PPPPPAAAAARRRRRTTTTTIIIIICUCUCUCUCULLLLLAAAAARRRRRS OS OS OS OS OF EF EF EF EF EMMMMMPPPPPLLLLLOOOOOYYYYYEEEEEEEEEES AS AS AS AS ANNNNND RD RD RD RD REEEEELLLLLAAAAATTTTTEEEEEDDDDD
DDDDDIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEESSSSS

The  details  as  required  under  Section  197(12)  of  the
Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, as amended from time to time, is annexed as
AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-VIIVIIVIIVIIVII to this report.

Particulars  of  employees  as  required  under  Rule  5(2)  and
(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, as amended from time
e- VIII
to time, is annexed as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre- VIII
e- VIII
e- VIII to this report.
e- VIII

CCCCCOOOOONSNSNSNSNSEEEEERRRRRVVVVVAAAAATTTTTIIIIIOOOOON  ON  ON  ON  ON  OF  EF  EF  EF  EF  ENNNNNEEEEERRRRRGGGGGYYYYY,  T,  T,  T,  T,  TECECECECECHHHHHNNNNNOOOOOLLLLLOOOOOGGGGGYYYYY
AAAAA BBBBB SSSSS OOOOO RRRRR PPPPP TTTTT IIIII OOOOO N   AN   AN   AN   AN   ANNNNN D  FD  FD  FD  FD  FOOOOO RRRRR EEEEE IIIII GGGGG N   EN   EN   EN   EN   E XXXXXCCCCC HHHHH AAAAA NNNNN GGGGG EEEEE
EEEEEAAAAARRRRRNNNNNIIIIINNNNNGGGGGS AS AS AS AS ANNNNND OD OD OD OD OUUUUUTTTTTGGGGGOOOOO

The  particulars  relating  to  conser vation  of  energ y,
technology absorption, foreign exchange earnings and outgo,
as  required  under  Section  134(3)(m)  is  annexed  as
AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIXXXXX to this report.

DDDDDEEEEETTTTTAAAAAIIIIILLLLL S  OS  OS  OS  OS  OF  SF  SF  SF  SF  SIIIIIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT  AT  AT  AT  AT  ANNNNND  MD  MD  MD  MD  MAAAAATTTTTEEEEERRRRRIIIIIAAAAALLLLL
OOOOORRRRRDDDDDEEEEERRRRR S  PS  PS  PS  PS  PAAAAA SSSSSSSSSSEEEEED  BD  BD  BD  BD  BY  TY  TY  TY  TY  THHHHHE  RE  RE  RE  RE  REGEGEGEGEGUUUUULLLLLAAAAATTTTTOOOOORRRRR S  OS  OS  OS  OS  ORRRRR
CCCCCOOOOO UUUUURRRRRTS  OTS  OTS  OTS  OTS  OR  TR  TR  TR  TR  TRRRRRIIIIIBBBBBUUUUUNNNNNAAAAALLLLL S  IS  IS  IS  IS  IMMMMMPPPPPAAAAACCCCCTTTTT IIIIINNNNNG  TG  TG  TG  TG  THHHHHEEEEE
GGGGGOOOOOIIIIINNNNNG  CG  CG  CG  CG  COOOOONNNNNCCCCCEEEEERRRRRN  SN  SN  SN  SN  STTTTTAAAAATTTTTUUUUUS  AS  AS  AS  AS  ANNNNND  CD  CD  CD  CD  COOOOOMMMMMPPPPPAAAAANNNNNYYYYY ’’’’’SSSSS
OOOOOPPPPPEEEEERRRRRAAAAATTTTTIIIIIOOOOONS INS INS INS INS IN FN FN FN FN FUUUUUTTTTTUUUUURRRRREEEEE

No  significant  and  material  orders  were  passed  by  the
regulators or courts or tribunals impacting the going concern
status and Company’s operations in future.

RRRRR EEEEE PPPPP OOOOO RRRRRT  OT  OT  OT  OT  ON 
IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL CL CL CL CL COOOOOMMMMMPPPPPLLLLLAAAAAIIIIINNNNNTS CTS CTS CTS CTS COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE

SEEEEE XXXXXUUUUUAAAAA L   HL   HL   HL   HL   HAAAAA RRRRR AAAAA SSSSS SSSSS MMMMM EEEEE NNNNN TTTTT-----

SN 
SN 
SN 
SN 

Pursuant  to  the  provisions  of  The  Sexual  Harassment  of
Women  at  the  Workplace  (Prevention,  Prohibition  and
Redressal) Act, 2013, Internal Complaints Committee has
been set up to redress complaints received regarding sexual
harassment.  All  employees  (permanent,  contractual,
temporary, trainees) are covered under this policy. During
the  financial  year  2019-20  one  complaint  received  and
resolved.

SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRIIIIIAAAAAL SL SL SL SL STTTTTAAAAANNNNNDDDDDAAAAARRRRRDDDDDSSSSS

The  Company  has  complied  with  applicable  Secretarial
Standards issued by the Institute of the Company Secretaries
of India.

AAAAACCCCCKKKKKNNNNNOOOOOWWWWWLLLLLEEEEEDDDDDGGGGGEEEEEMMMMMEEEEENNNNNTTTTT

The Directors of your Company are thankful to Bankers,
Business  Associates,  Customers,  Members,  Government
Bodies & Regulators for the continuous support received
from them and place on record their appreciation for the
sincere services rendered by the employees at all level.

for and on behalf of the Board
for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD

Place: Gurugram
Date:  October 07, 2020

(D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H)
CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN
DIN 00003021

Pearl Global Industries Limited     Annual Report 2019-20

27

Annexure-I to the Directors’ Report

NONONONONOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND RED RED RED RED REMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON PON PON PON PON POLLLLLIIIIICCCCCYYYYY
1.1.1.1.1.

OOOOOBBBBBJJJJJECECECECECTTTTTIIIIIVVVVVEEEEE

The Nomination and Remuneration Committee and
this Policy shall be in compliance with Section 178
of  the  Companies  Act,  2013  read  along  with  the
applicable rules thereto and requirements of Securities
and  Exchange  Board  of  India  (Listing  Obligations
and  Disclosure  Requirements)  Regulations,  2015.
The Key Objectives of the Committee would be:

1.1.1.1.1.1.1.1.1.1. To guide the Board in relation to appointment
and  removal  of  Directors,  Key  Managerial
Personnel and Senior Management.

1.2.1.2.1.2.1.2.1.2. To evaluate the performance of the members
of the Board and provide necessary report to
the Board for further evaluation of the Board.

1.3.1.3.1.3.1.3.1.3. To recommend to the Board on Remuneration
payable  to  the  Directors,  Key  Managerial
Personnel and Senior Management.

1.4.1.4.1.4.1.4.1.4. To provide to Key Managerial Personnel and
Senior Management reward linked directly to
their  effort,  performance,  dedication  and
achievement  relating  to  the  Company’s
operations.

1.5.1.5.1.5.1.5.1.5. To retain, motivate and promote talent and to
ensure  long  term  sustainability  of  talented
managerial  persons  and  create  competitive
advantage.

1.6.1.6.1.6.1.6.1.6. To devise a policy on Board diversity
1.7.1.7.1.7.1.7.1.7. To develop a succession plan for the Board and

to regularly review the plan;

2.2.2.2.2.

DDDDDEEEEEFIFIFIFIFINNNNNIIIIITTTTTIIIIIOOOOONSNSNSNSNS
2.1.2.1.2.1.2.1.2.1. AAAAActctctctct      means  the  Companies  Act,  2013  and
Rules  framed  thereunder,  as  amended  from
time to time.

2.2.2.2.2.2.2.2.2.2. BBBBB oooooaaaaarrrrrddddd      means  Board  of  Directors  of  the

Company.

2.3.2.3.2.3.2.3.2.3. DiDiDiDiDirrrrreeeeectctctctctooooorsrsrsrsrs     mean Directors of the Company.
2.4.2.4.2.4.2.4.2.4. KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel     means

2.4.1. 
2.4.1. 
2.4.1.  Chief  Executive  Officer  or  the
2.4.1. 
2.4.1. 

Managing Director or the Manager;

2.4.2. 
2.4.2. 
2.4.2. Whole-time director;
2.4.2. 
2.4.2. 

2.4.3. 
2.4.3. 
2.4.3. Chief Financial Officer;
2.4.3. 
2.4.3. 

2.5.2.5.2.5.2.5.2.5.

2.4.4. 
2.4.4. 
2.4.4. Company Secretary; and
2.4.4. 
2.4.4. 

2.4.5.
2.4.5.
2.4.5. such other officer as may be prescribed.
2.4.5.
2.4.5.
SSSSS eeeeennnnn i oi oi oi oi or  Mr  Mr  Mr  Mr  Maaaaannnnnaaaaa ggggg eeeee m em em em em ennnnnttttt       means  Senior
Management means personnel of the company
who are members of its core management team
excluding the Board of Directors.

3.3.3.3.3.

PPPPPooooolllllicicicicicy foy foy foy foy for ar ar ar ar appppppppppoooooiiiiinnnnntttttmememememennnnnt at at at at and rnd rnd rnd rnd reeeeemovmovmovmovmovaaaaal of Di
l of Dirrrrreeeeectctctctctooooorrrrr,,,,,
l of Di
l of Di
l of Di
KKKKKMMMMMP aP aP aP aP and Snd Snd Snd Snd Seeeeennnnnioioioioior Mr Mr Mr Mr Maaaaannnnnaaaaagggggeeeeemememememennnnnttttt
3.1.3.1.3.1.3.1.3.1. AAAAAppppppppppoooooiiiiinnnnntttttmememememennnnnt ct ct ct ct crrrrritititititeeeeerrrrria aia aia aia aia and qnd qnd qnd qnd quuuuuaaaaalllllificificificificificaaaaatttttioioioioionnnnnsssss:::::

a)a)a)a)a)

bbbbb)))))

ccccc)))))

The  Committee  shall  identify  and
ascertain  the  integrity,  qualification,
expertise and experience of the person
for appointment as Director, KMP or
at  Senior  Management  level  and
recommend  to  the  Board  his  /  her
appointment.

A  person  should  possess  adequate
qualification, expertise and experience
for the position he / she is considered
for appointment. The Committee has
to  decide  whether
discretion 
qualification, expertise and experience
possessed  by  a  person  is  sufficient  /
satisfactory for the concerned position.

The  Company  shall  not  appoint  or
continue the employment of any person
as  Whole-time  Director  who  has
attained  the  age  of  seventy  years.
Provided  that  the  term  of  the  person
holding this position may be extended
beyond the age of seventy years with the
approval  of  shareholders  by  passing  a
special  resolution  based  on  the
explanatory statement annexed to the
notice for such motion indicating the
extension  of
for 
justification 
appointment beyond seventy years.

3.2.3.2.3.2.3.2.3.2. TTTTTeeeeerrrrrm / Tm / Tm / Tm / Tm / Teeeeennnnnuuuuurrrrreeeee

a)a)a)a)a) Managing  Director/Whole-time

Director:

The  Company  shall  appoint  or  re-
appoint  any  person  as  its  Executive
Chairman,  Managing  Director  or
Executive  Director  for  a  term  not

28

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-I to the Directors’ Report

bbbbb)))))

-

-

-

exceeding  five  years  at  a  time.  No  re-
appointment shall be made earlier than
one year before the expiry of term.

Independent Director:

An  Independent  Director  shall  hold
office for a term up to five consecutive
years on the Board of the Company and
will be eligible for re-appointment on
passing  of  a  special  resolution  by  the
Company  and  disclosure  of  such
appointment in the Board’s report.

No  Independent  Director  shall  hold
office  for  more  than  two  consecutive
terms, but such Independent Director
shall be eligible for appointment after
expiry  of  three  years  of  ceasing  to
become  an  Independent  Director.
Provided that an Independent Director
shall not, during the said period of three
years, be appointed in or be associated
with  the  Company  in  any  other
capacity,  either  directly  or  indirectly.
However,  if  a  person  who  has  already
served as an Independent Director for 5
years  or  more  in  the  Company  as  on
October  1,  2014  or  such  other  date  as
may be determined by the Committee as
per regulatory requirement; he / she shall
be eligible for appointment for one more
term of 5 years only.

At  the  time  of  appointment  of
Independent  Director  it  should  be
ensured  that  number  of  Boards  on
which  such  Independent  Director
serves  is  restricted  to  seven  listed
companies as an Independent Director
and  three  listed  companies  as  an
Independent  Director  in  case  such
person  is  serving  as  a  Whole-time
Director  of  a  listed  company  or  such
other  number  as  may  be  prescribed
under the Act.

4.4.4.4.4.

3.3.3.3.3.3.3.3.3.3. EEEEEvvvvvaaaaallllluuuuuaaaaatttttioioioioionnnnn

The Committee shall carry out evaluation of
performance  of  every  Director,  KMP  and
Senior  Management  Personnel  at  regular
interval (yearly).

3.4.3.4.3.4.3.4.3.4. RRRRReeeeemovmovmovmovmovaaaaalllll

Due  to  reasons  for  any  disqualification
mentioned  in  the  Act  or  under  any  other
applicable  Act,  rules  and  regulations
thereunder, the Committee may recommend,
to the Board with reasons recorded in writing,
removal  of  a  Director,  KMP  or  Senior
Management  Personnel  subject  to  the
provisions  and  compliance  of  the  said  Act,
rules and regulations.

3.5.3.5.3.5.3.5.3.5. RRRRRetetetetetiiiiirrrrreeeeemememememennnnnttttt

The KMP and Senior Management Personnel
shall retire as per the applicable provisions of
the  Act  and  the  prevailing  policy  of  the
Company. The Board will have the discretion
to  retain  the  Director,  KMP,  Senior
Management Personnel in the same position/
remuneration or otherwise even after attaining
the  retirement  age,  for  the  benefit  of  the
Company.

PPPPPooooolllllicicicicicy  ry  ry  ry  ry  relelelelelaaaaatttttiiiiinnnnng  tg  tg  tg  tg  to  to  to  to  to  the  Rhe  Rhe  Rhe  Rhe  Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion  fon  fon  fon  fon  for  tr  tr  tr  tr  thehehehehe
W h oW h oW h oW h oW h ol el el el el e-----tttttiiiiime  Di
nd  Seeeeennnnn i oi oi oi oi orrrrr
nd  S
me  Dirrrrreeeee c tc tc tc tc tooooorrrrr,  K,  K,  K,  K,  KMMMMM P  aP  aP  aP  aP  and  S
nd  S
me  Di
me  Di
nd  S
me  Di
MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel
4.1.4.1.4.1.4.1.4.1. GGGGGeeeeenenenenenerrrrraaaaalllll:::::
a)a)a)a)a)

and 

The  remuneration  /  compensation  /
commission  etc.  to  the  Whole-time
Director,  KMP 
Senior
Management  Personnel  will  be
determined by the Committee or as per
policies framed by the committee. The
remuneration  /  compensation  /
commission etc. shall be subject to the
prior/post approval of the shareholders
of  the  Company  and  Central
Government, wherever required.

bbbbb)))))

to 

the 

existing
Increments 
remuneration/ compensation structure
may  be  recommended  by 
the
Committee to the Board which should
be  within  the  slabs  approved  by  the
Shareholders in the case of Whole-time
Director.

ccccc))))) Where  any  insurance  is  taken  by  the
Company on behalf of its Whole-time
Director,  Chief  Executive  Officer,

Pearl Global Industries Limited     Annual Report 2019-20

29

Annexure-I to the Directors’ Report

Chief Financial Officer, the Company
Secretary and any other employees for
indemnifying them against any liability,
the  premium  paid  on  such  insurance
shall  not  be  treated  as  part  of  the
remuneration  payable  to  any  such
personnel. Provided that if such person
is proved to be guilty, the premium paid
on  such  insurance  shall  be  treated  as
part of the remuneration.

o Wholelelelele-----tttttiiiiime / Ex
4.2.4.2.4.2.4.2.4.2. RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion  tn  tn  tn  tn  to Who
me / Exeeeeecucucucucutttttiviviviviveeeee
me / Ex
me / Ex
o Who
o Who
me / Ex
o Who
/  M/  M/  M/  M/  Maaaaannnnnaaaaagggggiiiiinnnnng  Di
g  Dirrrrreeeeectctctctctooooorrrrr,  K,  K,  K,  K,  KMMMMMP  aP  aP  aP  aP  and  Snd  Snd  Snd  Snd  Seeeeennnnnioioioioiorrrrr
g  Di
g  Di
g  Di
MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel:::::
a)a)a)a)a)
FFFFFixixixixixeeeeed pd pd pd pd paaaaayyyyy :::::

The Whole-time Director/ KMP and
Senior Management Personnel shall be
eligible for a monthly remuneration as
may be approved by the Board on the
recommendation  of  the  Committee.
The  breakup  of  the  pay  scale  and
quantum  of  perquisites  including,
employer’s contribution to P.F, pension
scheme, medical expenses, club fees etc.
shall  be  decided  and  approved  by  the
Board/  the  Person  authorized  by  the
Board or the Committee.

5.5.5.5.5.

bbbbb))))) MMMMMiiiiinnnnniiiiimmmmmuuuuum Rm Rm Rm Rm Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn:::::

If, in any financial year, the Company
has  no  profits  or  its  profits  are
inadequate,  the  Company  shall  pay
remuneration  to  its  Whole-time
Director  in  accordance  with  the
provisions of Schedule V of the Act and
if  it  is  not  able  to  comply  with  such
provisions, with the previous approval
of the Central Government.

ccccc)))))

PPPPPrrrrrovovovovovisioisioisioisioisionnnnns fos fos fos fos for exr exr exr exr excccccesesesesess rs rs rs rs reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn:::::

If  any  Whole-time  Director  draws  or
receives, directly or indirectly by way of
remuneration any such sums in excess
of the limits prescribed under the Act
or  without  the  prior  sanction  of  the
Central Government, where required,
he / she shall refund such sums to the
Company  and  until  such  sum  is

refunded,  hold  it  in  trust  for  the
Company.  The  Company  shall  not
waive recovery of such sum refundable
to  it  unless  permitted  by  the  Central
Government.

-  Exeeeee c uc uc uc uc uttttti vi vi vi vi ve  /e  /e  /e  /e  /
-  Ex
4.3.4.3.4.3.4.3.4.3. RRRRR eeeeemmmmmuuuuun en en en en errrrraaaaattttti oi oi oi oi on  tn  tn  tn  tn  to   No   No   No   No   Nooooonnnnn-  Ex
-  Ex
-  Ex

IIIIIndendendendendepppppeeeeendendendendendennnnnt Di
t Dirrrrreeeeectctctctctooooorrrrr:::::
t Di
t Di
t Di
a)a)a)a)a)

SitSitSitSitSittttttiiiiinnnnng Fg Fg Fg Fg Feeeeeeseseseses:::::

The  Non-  Executive  /  Independent
Director may receive remuneration by
way  of  fees  for  attending  meetings  of
Board or Committee thereof. Provided
that the amount of such fees shall not
exceed  `  One  Lac  per  meeting  of  the
Board or Committee or such amount
as  may  be  prescribed  by  the  Central
Government from time to time.

bbbbb)))))

Stock Options:

An Independent Director shall not be
entitled  to  any  stock  option  of  the
Company.

MMMMMEEEEEMMMMMBBBBBEEEEERRRRRSSSSSHHHHHIIIIIPPPPP
5.15.15.15.15.1 The Committee shall consist of a minimum 3
non-executive  directors,  majority  of  them
being independent.

5.25.25.25.25.2 Minimum two (2) members shall constitute a
quorum for the Committee meeting.

5.35.35.35.35.3 Membership  of  the  Committee  shall  be

disclosed in the Annual Report.

5.45.45.45.45.4 Term  of  the  Committee  shall  be  continued
unless terminated by the Board of Directors.

6.6.6.6.6.

CCCCCHHHHHAAAAAIIIIIRRRRRPPPPPEEEEERRRRRSSSSSOOOOONNNNN
6.16.16.16.16.1 Chairperson  of  the  Committee  shall  be  an

Independent Director.

6.26.26.26.26.2 Chairperson of the Board may be appointed
as a member of the Committee but shall not
be a Chairman of the Committee.

6.36.36.36.36.3

In  the  absence  of  the  Chairperson,  the
members  of  the  Committee  present  at  the
meeting shall choose one amongst them to act
as Chairperson.

6.46.46.46.46.4 Chairman  of 

the  Nomination  and

30

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-I to the Directors’ Report

Remuneration Committee meeting could be
present at the Annual General Meeting or may
nominate some other member to answer the
shareholders’ queries.

7.7.7.7.7.

FRFRFRFRFREQEQEQEQEQUUUUUEEEEENNNNNCCCCCY OY OY OY OY OF MF MF MF MF MEEEEEEEEEETTTTTIIIIINNNNNGGGGGSSSSS

8.8.8.8.8.

The meeting of the Committee shall be held at such
regular intervals as may be required.

CCCCCOOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEE ME ME ME ME MEEEEEMMMMMBBBBBEEEEERRRRRSSSSS’ I’ I’ I’ I’ INNNNNTTTTTEEEEERRRRREEEEESSSSSTSTSTSTSTS
8.18.18.18.18.1 A member of the Committee is not entitled
to  be  present  when  his  or  her  own
remuneration is discussed at a meeting or when
his or her performance is being evaluated.

8.28.28.28.28.2 The Committee may invite such executives, as
it considers appropriate, to be present at the
meetings of the Committee.

9.9.9.9.9.

SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRYYYYY

10.10.10.10.10.

The Company Secretary of the Company shall act as
Secretary of the Committee.

VOVOVOVOVOTTTTTIIIIINNNNNGGGGG
10.110.110.110.110.1 Matters  arising  for  determination  at
Committee  meetings  shall  be  decided  by  a
majority  of  votes  of  Members  present  and
voting  and  any  such  decision  shall  for  all
purposes  be  deemed  a  decision  of  the
Committee.

10.210.210.210.210.2 In the case of equality of votes, the Chairman
of the meeting will have a casting vote.

11.11.11.11.11. NNNNNOOOOOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON DN DN DN DN DUUUUUTTTTTIIIIIEEEEESSSSS

The  duties  of  the  Committee  in  relation  to
nomination matters include:

11.111.111.111.111.1 Ensuring that there is an appropriate induction
in  place  for  new  Directors  and  members  of
Senior  Management  and  reviewing  its
effectiveness;

11.211.211.211.211.2 Ensuring that on appointment to the Board,
Non-Executive  Directors  receive  a  formal
letter of appointment in accordance with the
Guidelines provided under the Act;

11.311.311.311.311.3 Identifying and recommending Directors who

are  to  be  put  forward  for  retirement  by
rotation.

11.411.411.411.411.4 Determining  the  appropriate  size,  diversity

and composition of the Board;

11.511.511.511.511.5 Setting a formal and transparent procedure for
selecting new Directors for appointment to the
Board;

11.611.611.611.611.6 Evaluating  the  performance  of  the  Board
members  and  Senior  Management  in  the
context of the Company’s performance from
business and compliance perspective;

11.711.711.711.711.7 Delegating any of its powers to one or more of
its  members  or  the  Secretary  of  the
Committee; and

11.811.811.811.811.8 Considering  any  other  matters,  as  may  be

requested by the Board.

12.12.12.12.12.

RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON DN DN DN DN DUUUUUTTTTTIIIIIEEEEESSSSS

The  duties  of  the  Committee  in  relation  to
remuneration matters include:

12.112.112.112.112.1 to consider and determine the Remuneration
Policy,  based  on  the  performance  and  also
bearing  in  mind  that  the  remuneration  is
reasonable and sufficient to attract retain and
motivate members of the Board and such other
factors  as  the  Committee  shall  deem
appropriate all elements of the remuneration
of the members of the Board.

12.212.212.212.212.2 to  approve  the  remuneration  of  the  Senior
Management  including  key  managerial
personnel  of  the  Company  maintaining  a
balance  between  fixed  and  incentive  pay
reflecting  short  and  long  term  performance
objectives  appropriate  to  the  working  of  the
Company.

12.312.312.312.312.3 to delegate any of its powers to one or more of
its  members  or  the  Secretary  of  the
Committee.

12.412.412.412.412.4 to  consider  any  other  matters  as  may  be

requested by the Board.

12.512.512.512.512.5 Professional indemnity and liability insurance
for Directors and senior management.

Pearl Global Industries Limited     Annual Report 2019-20

31

Annexure-II Annual Report on CSR activities

1. Over the year, we have been focusing on sustainable business practices encompassing economic, environmental and

social imperatives that not only cover our business, but also that of communities around us.

We had set up a Society namely Arpan Educational Society For Underprivileged Children in the year 2006. This was
done to provide the free education to underprivileged children. Visit http://www.arpaneducation.com/index.html for
more details and the activities of the Society.

2. Mr.  Vinod  Vaish  has  tendered  his  resignation  from  the  Board  of  the  Company  with  effect  from  April  30,  2020.
Consequently, he has ceased to be as Chairman of the CSR Committee. The Board of Directors has in its meeting
held on July 28, 2020 appointed Mrs. Madhulika Bhupatkar, Independent Women Director as Chairperson of the
CSR Committee.

The current composition of the CSR Committee comprises Mrs. Madhulika Bhupatkar, Chairperson, Mr. Pulkit
Seth, and Mr. Anil Nayar as Members.

3. Average net profit of the Company for last three financial years: ````` 1,106.75 La
 1,106.75 La
 1,106.75 La
 1,106.75 Lakkkkkhhhhh
 1,106.75 La
4. Prescribed CSR expenditure (two percent of the amount mentioned in item 3 above): ````` 22.13 La
 22.13 La
 22.13 La
 22.13 Lakkkkkhhhhh
 22.13 La

The Company has earmarked ` 22.15 Lakh for CSR expenditure for the financial year 2019-20.

5. Details of CSR spent during the financial year:

(a) Total amount to be spent for the financial year: ` 22.15 Lakh

(b) Amount unspent, if any: NIL

(c) Manner in which the amount spent during the financial year is detailed below:

(` in Lakh)

SSSSSrrrrr..... CCCCCSSSSSR  PR  PR  PR  PR  Prrrrrojojojojojeeeeectctctctct
r  activivivivivititititityyyyy
r  act
r  act
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r  act
iiiiindendendendendennnnntttttifieifieifieifieifieddddd

SSSSSeeeeectctctctctooooor ir ir ir ir in wn wn wn wn whhhhhichichichichich
ct is
ct is
ttttthe Phe Phe Phe Phe Prrrrrojojojojojeeeeect is
ct is
ct is
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PPPPPrrrrrojojojojojeeeeectctctctcts  os  os  os  os  or  pr  pr  pr  pr  prrrrrooooogggggrrrrraaaaammmmmmesmesmesmesmes
r otheheheheherrrrr
r ot
r ot
(1) Looooocccccaaaaal Al Al Al Al Arrrrrea oea oea oea oea or ot
(1) L
(1) L
r ot
(1) L
(1) L
(2) Spppppeeeeecifcifcifcifcify ty ty ty ty the She She She She Stttttaaaaattttte ae ae ae ae andndndndnd
(2) S
(2) S
(2) S
(2) S
       disisisisistttttrrrrrict wict wict wict wict wheheheheherrrrre pe pe pe pe prrrrrojojojojojeeeeectctctctctsssss
       d
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       o
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       u
       u
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       u

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t  out  outttttlllllaaaaayyyyy
t  out  ou
AAAAAmoumoumoumoumounnnnnt  ou
et)  Prrrrrojojojojojeeeeectctctctct PPPPPrrrrrojojojojojeeeeectctctctcts  os  os  os  os  or  Pr  Pr  Pr  Pr  Prrrrrooooogggggrrrrraaaaammmmmsssss
et)  P
et)  P
(B(B(B(B(Budududududggggget)  P
et)  P
ub  heads:::::
ub  heads
ub  heads
SSSSSub  heads
ooooor Pr Pr Pr Pr Prrrrrooooogggggrrrrraaaaam  wm  wm  wm  wm  wiseiseiseiseise
ub  heads
ct  expppppeeeeendndndndndititititituuuuurrrrreeeee
ct  ex
ct  ex
(1)  Dirrrrreeeeect  ex
(1)  Di
(1)  Di
ct  ex
(1)  Di
(1)  Di
       on pn pn pn pn prrrrrojojojojojeeeeectctctctcts os os os os or pr pr pr pr prrrrrooooogggggrrrrraaaaammmmm pppppeeeeerrrrrioioioioioddddd
       o
       o
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heads
heads
(2)  O(2)  O(2)  O(2)  O(2)  Ovvvvveeeeerrrrrheads
heads
heads

CCCCCuuuuummmmmuuuuulllllaaaaatttttiviviviviveeeee AAAAAmoumoumoumoumounnnnnt  st  st  st  st  spppppeeeeennnnnttttt:::::
exexexexexpppppeeeeendndndndndititititituuuuurrrrreeeee DiDiDiDiDirrrrreeeeect oct oct oct oct or tr tr tr tr thhhhhrrrrrouououououggggghhhhh
uuuuuptptptptpto to to to to to to to to to thehehehehe
rrrrreeeeepppppooooorrrrrtttttiiiiinnnnnggggg

iiiiimmmmmppppplelelelelemememememennnnntttttiiiiinnnnng  ag  ag  ag  ag  agggggeeeeencncncncncyyyyy

1.

2.

3.

Education and
Promoting
other initiatives Education

Promoting
Education and
other initiatives Education

Education and
Promoting
other initiatives Education

4. Health care
activities

TTTTTotototototaaaaalllll

Promoting
preventing Health
care activities

NCT of Delhi

15.65

15.65

15.65 Through Arpan

NCT of Delhi

NCT of Delhi

NCT of Delhi

0.50

3.50

2.50

0.50

3.50

2.50

Educational Society For
Underprivileged Children

0.50 Through Etasha Society

3.50 Through Sasakawa India
Leprosy Foundation

2.50 Through Cancer

Awareness Prevention and
Early Detection Trust

22.15
22.15
22.15
22.15
22.15

22.15
22.15
22.15
22.15
22.15

22.15
22.15
22.15
22.15
22.15

6. Reasons for not spending the amount: Not applicable; as the Company has spent more than the minimum prescribed

amount for CSR activities.

7. RRRRREEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY SY SY SY SY STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTSTSTSTSTS

The Responsibility Statement of the CSR Committee of the Board of Directors of the Company is reproduced below:

“The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR
objectives and policy of the Company.”

Place: Gurugram
Date: October 07, 2020

(Pulkit Seth)
Managing Director

(Madhulika Bhupatkar)
Chairman of CSR Committee

32

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-III to the Directors’ Report

SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRIIIIIAAAAAL AL AL AL AL AUUUUUDDDDDIIIIIT RT RT RT RT REEEEEPPPPPOOOOORRRRRTTTTT
l year er er er er endendendendended 31d 31d 31d 31d 31ssssst t t t t MMMMMaaaaarrrrrch, 2020
ch, 2020
ch, 2020
l yea
he finnnnnaaaaancianciancianciancial yea
l yea
he fi
FFFFFooooor tr tr tr tr the fi
he fihe fi
ch, 2020
ch, 2020
l yea

[Pursuant to section 204(1) of the Companies Act, 2013
and rule No. 9 of the Companies (Appointment and
Remuneration Personnel) Rules, 2014]

TTTTTo,o,o,o,o,
TTTTThe Mhe Mhe Mhe Mhe Meeeeembmbmbmbmbeeeeersrsrsrsrs
PPPPPeaeaeaeaearrrrrl Glo
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd
l Glo
l Glo
l Glo
CCCCCIIIIIN: L74899D
L1989PLLLLLC036849
C036849
C036849
L1989P
L1989P
N: L74899D
N: L74899D
C036849
N: L74899DL1989P
L1989P
C036849
N: L74899D
A-3, Co
A-3, Co
A-3, Commmmmmmmmmuuuuunnnnnititititity Ce
y Ce
y Ce
y Cennnnntttttrrrrre, Ne, Ne, Ne, Ne, Naaaaarrrrraaaaaiiiiinnnnna Ia Ia Ia Ia Indndndndnduuuuussssstttttrrrrriaiaiaiaial Al Al Al Al Arrrrreaeaeaeaea
A-3, Co
A-3, Co
y Ce
PPPPPhhhhhaaaaasesesesese-----IIIIII, NI, NI, NI, NI, Neeeeew Dw Dw Dw Dw Delelelelelhhhhhi-110028
i-110028
i-110028
i-110028
i-110028

We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to good
corporate  practices  by  Pearl  Global  Industries  Limited
(hereinafter  called  the  Company).  Secretarial  Audit  was
conducted in a manner that provided us a reasonable basis
for evaluating the corporate conducts/statutory compliances
and expressing our opinion thereon.

We report that:

a) Maintenance of secretarial records is the responsibility
of the management of the Company. Our responsibility
is to express an opinion on these secretarial records based
on our audit.

b) We have followed the audit practices and processes as
were appropriate to obtain reasonable assurance about
the correctness of the contents of the secretarial records.
The verification was done on test basis to ensure that
correct  facts  are  reflected  in  secretarial  records.  We
believe  that  the  processes  and  practices,  we  followed,
provide a reasonable basis for our opinion.

c) We have not verified the correctness and appropriateness

of the financial statements of the Company.

d) Wherever required, we have obtained the Management
representation about the compliances of laws, rules and
regulations and happening of events etc.

e) The compliance of the provisions of the corporate and
other applicable laws, rules, regulations, standards is the
responsibility of the management. Our examination was
limited to the verification of procedures on test basis.

f ) The Securities and Exchange Board of India (Registrars
to  an  Issue  and  Share  Transfer  Agents)  Regulations,
1993 regarding the Companies Act and dealing with
client;

g)

h)

*The Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2009;

*The Securities and Exchange Board of India (Buyback
of  Securities)  Regulations,  1998  and  Securities  and
Exchange  Board  of  India  (Buy-back  of  Securities)
regulations, 2018; and

i) The  Securities  and  Exchange  Board  of  India  (Listing
obligations and Disclosures requirements) Regulations,
2015;

*No  event  took  place  under  these  regulations  during  the
audit period.

We  have  also  examined  compliance  with  the  applicable
clauses of the Secretarial Standard on Meetings of the Board
of Directors and on General Meetings issued by The Institute
of Company Secretaries of India, with which the company
has generally complied with.

During the Audit Period, the Company has complied with
the provisions of the Act, Rules, Regulations and Guidelines
to the extent applicable.

Based  on  our  verification  of  PPPPPeaeaeaeaearrrrrl  Glo
l  Glo
l  Glo
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l  Glo
LLLLLiiiiimmmmmitititititeeeeeddddd’’’’’s s s s s books, papers, minute books, forms and returns
filed and other records maintained by the Company and also
the information provided by the Company, its officers, agents
and  authorized  representatives,  during  the  conduct  of
Secretarial Audit, we hereby report that in our opinion, the
Company has, during the audit period covering the financial
year ended on 31st March, 2020 complied with the statutory
provisions listed hereunder and also that the Company has
ses and cccccooooommmmmpppppllllliaiaiaiaiancncncncnce me
ppppprrrrrooooopppppeeeeer Br Br Br Br Boooooaaaaarrrrrddddd- p- p- p- p- prrrrrooooocccccesesesesesses 
e me
e me
e mechchchchchaaaaannnnnisisisisism m m m m in
ses 
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ses 
place to the extent, in the manner and subject to the reporting
made hereinafter:

We have examined the books, papers, minute books, forms
and  returns  filed  and  there  records  maintained  by  PPPPPeaeaeaeaearrrrrlllll
GloGloGloGloGlobbbbbaaaaal  Il  Il  Il  Il  Indndndndnduuuuussssstttttrrrrries  L
ies  Liiiiimmmmmitititititeeeeed d d d d  (“the  Company”)  for  the
ies  L
ies  L
ies  L
financial year ended on 31st March, 2020, according to the
provisions of (hereinafter to be referred as “Act” collectively)
(Many of the Records were examined online due to Covid
19):

WWWWWe e e e e  have  also  examined  compliance  with  the  applicable
Clauses / Regulations of the following:

i.i.i.i.i.

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e  of
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ds  is
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ds  is
ies of Indndndndndiaiaiaiaia.....
ies of I
ies of I
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ies of I

g  Agrrrrreeeee eeeeem em em em em ennnnnttttts  es  es  es  es  ennnnnttttteeeeerrrrreeeee d  id  id  id  id  innnnnttttto  bo  bo  bo  bo  by  ty  ty  ty  ty  th eh eh eh eh e
g  Ag
ii.ii.ii.ii.ii. TTTTThe  Lhe  Lhe  Lhe  Lhe  Li si si si si stttttiiiiinnnnng  Ag
g  Ag
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ck Exchchchchchaaaaannnnnggggge(s).
e(s).
e(s).
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nd NSE SE SE SE SE Stttttooooock Ex
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nd NS
CoCoCoCoCommmmmpppppaaaaannnnny wy wy wy wy wititititith Bh Bh Bh Bh BSSSSSE aE aE aE aE and NS
nd NS
e(s).
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ck Ex
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d of Indndndndndia (Lia (Lia (Lia (Lia (Lisisisisistttttiiiiinnnnnggggg
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nd Exchchchchchaaaaannnnnggggge Be Be Be Be Boooooaaaaarrrrrd of I
d of I
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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
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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
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t Di
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t Di
t Di
AAAAAudududududit  Co
it  Commmmmmmmmmitititititttttteeeeeeeeee : : : : :  During  the  Financial  Year  2019-20
it  Co
it  Co
it  Co
Audit  Committee  met  on  28.05.2019,  13.08.2019,
14.11.2019  and  13.02.2020  The  Company  has  also
maintained the proper record of the minutes of the meetings.

34

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-III to the Directors’ Report

SSSSStttttaaaaakkkkkehoehoehoehoeholdeldeldeldelders  Rrs  Rrs  Rrs  Rrs  Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiip  Co
p  Commmmmmmmmmitititititttttteeeee eeeee : : : : :  During  the
p  Co
p  Co
p  Co
Financial Year 2019-20 the committee met on 24/04/2019,
6/11/2019, 10/01/2020 and 06/03/2020. The Company
has also maintained the proper record of the minutes of the
meetings.

e meetetetetetiiiiinnnnnggggg :::::
e me
n Con Commmmmmmmmmitititititttttteeeeee me
e me
n Con Co
NNNNNooooommmmmiiiiinnnnnaaaaatttttioioioioion an an an an and Rnd Rnd Rnd Rnd Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion Co
e me

The  Committee  met  on  28/05/2019  and  13/02/2020
during the Financial Year 2019-20.

e Commmmmmmmmmitititititttttteeeeeeeeee:::::
e Co
FFFFFiiiiinnnnnaaaaancncncncnce Co
e Co
e Co

The Committee met on 30/04/2019, 20/05/2019, 08/07/
2019, 03/08/2019, 16/09/2019, 24/10/2019, 14/11/2019,
06/12/2019,  18/12/2019  17/01/2020,  11/02/2020,  26/
02/2020 during the Financial Year 2019-20.

’ meetetetetetiiiiinnnnnggggg :::::
’ me
t Dirrrrreeeeectctctctctooooorsrsrsrsrs’ me
’ me
t Di
IIIIIndendendendendepppppeeeeendendendendendennnnnt Di
t Di
’ me
t Di

During  the  Financial  Year  2019-20  the  Independent
Directors met on 02/03/2020.

CCCCCSSSSSR CoR CoR CoR CoR Commmmmmmmmmitititititttttteeeeeeeeee:::::

WWWWWe e e e e further report that:

The Committee met on 28/05/2019 during the Financial
Year 2019-20.

The Board of Directors of the Company is duly constituted
with proper balance of Executive Directors, Non-Executive
Directors and Independent Directors.

CoCoCoCoCommmmmpppppositositositositositioioioioion of t
n of t
n of t
n of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd:::::
n of t

LLLLLIIIIISSSSST OT OT OT OT OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRS AS AS AS AS AS OS OS OS OS ON 31.03.2020
N 31.03.2020
N 31.03.2020
N 31.03.2020
N 31.03.2020

S. NS. NS. NS. NS. NOOOOO..... NNNNNAAAAAMMMMME AE AE AE AE ANNNNND FD FD FD FD FAAAAATTTTTHHHHHEEEEERRRRR’’’’’S NS NS NS NS NAAAAAMMMMME OE OE OE OE OF TF TF TF TF THHHHHE DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS

1

2

3

4

5

6

7

8

Mr. Deepak Seth S/o Late Shri Madan Lal Seth

Mr. Pulkit Seth S/o Shri Deepak Seth

Mrs. Shefali Seth D/o Shri Sunil Pal Seth

Mr. Rajendra Kumar Aneja S/o Late Shri Hari Chand Aneja

Mr. Chittranjan Dua S/o Late Shri Inder Dev Dua

Mr. Anil Nayar S/o Late Shri Prakash Chand Nayar
Mr. Vinod Vaish S/o Shri Motilal Vaish (R(R(R(R(Resigesigesigesigesignenenenened od od od od on 30n 30n 30n 30n 30ttttth h h h h AAAAAppppprrrrril 2020)
il 2020)
il 2020)
il 2020)
il 2020)
Mr. Abhishek Goyal S/o Lt. Shri Berjesh Kumar Goyal

9.

Mrs. Madhulika Bhupatkar D/o Dattatreya Ranganath Deo

DDDDDIIIIINNNNN

00003021

00003044

01388430

00731956

00036080

01390190

01945795

01928855

08712718

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the
agenda items before the meeting and for meaningful participation at the meeting.

ils of Boooooaaaaarrrrrd Md Md Md Md Meeeeeetetetetetiiiiinnnnnggggg :::::
ils of B
DDDDDetetetetetaaaaails of B
ils of B
ils of B

Board has met four times during the financial year on:

e of meetetetetetiiiiinnnnnggggg
e of me
S. NS. NS. NS. NS. Nooooo..... DDDDDaaaaattttte of me
e of me
e of me

1.

2.

3.

4.

28.05.2019

13.08.2019

14.11.2019

13.02.2020

DDDDDaaaaattttte of Ne of Ne of Ne of Ne of Notototototiciciciciceeeee

13.05.2019

29.07.2019

01.11.2019

29.01.2020

The Company has also maintained the proper record of the minutes of the meetings.

Majority decision are carried through the Board (means unanimously) and there is no dissenting members’ views are captured
and recorded as part of the minutes.

Pearl Global Industries Limited     Annual Report 2019-20

35

Annexure-III to the Directors’ Report

AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg :::::

1. The  Air  (Prevention  and  Control  of  Pollution)  Act,

During the Financial Year 2019-20 the Company has called
30th Annual General Meeting for the Financial Year 2018-
19 on 2424242424ttttth h h h h SSSSSeeeeeptptptptpteeeeembmbmbmbmbeeeeer 2019 
r 2019 
r 2019 
r 2019 at Sri Sathya Sai International
r 2019 
Centre, Pragati Vihar (Near Pragati Vihar Hostel), Lodhi
Road, New Delhi-110 003 The Company has kept the date
of book Closure on 18th September 2019 to 24th September
2019 (both days inclusive).

e of Stttttaaaaatttttuuuuutttttooooorrrrry Ry Ry Ry Ry Reeeeegggggisisisisisttttteeeeersrsrsrsrs:::::
e of S
MMMMMaaaaaiiiiinnnnnttttteeeeennnnnaaaaancncncncnce of S
e of S
e of S

The  Company  has  maintained  the  following  Statutory
Registers required under the Companies Act 2013.

1. Register of Members

2. Register of Directors and Key Managerial personnel

3. Register of Security held by the Director

4. Register of Loans, Investment and Guarantee

5. Register of Charge

6. Register of Contracts or Arrangements

7. Register of Transfer and Transmission.

8. Register of Renewal and Duplicate Shares Certificate

DDDDDeeeeeclclclclclaaaaarrrrraaaaatttttioioioioion an an an an and Pnd Pnd Pnd Pnd Paaaaayyyyymememememennnnnt of Div
t of Div
t of Div
t of Divideideideideidendndndndnd:::::
t of Div

The  Dividend  declared  for  the  financial  year  ending
31st March 2019 is paid in prescribed time. The Board of
Directors have declared final dividend ` 3/- per Equity Share
of ` 10/- each for the financial year 2018-19.

WWWWWe  fe  fe  fe  fe  fuuuuurrrrrtttttheheheheher  rr  rr  rr  rr  reeeeepppppooooorrrrrt  tt  tt  tt  tt  thhhhhaaaaat t t t t  there are  adeadeadeadeadeqqqqquuuuuaaaaattttte  se  se  se  se  sysysysysysttttteeeeemmmmms  as  as  as  as  andndndndnd
ppppprrrrrooooocccccesesesesesses 
ses 
ses 
ses in the Company commensurate with the size and
ses 
o  monnnnnitititititooooor  ar  ar  ar  ar  and  e
operations  of  the  Company  ttttto  mo
nd  end  ennnnnsssssuuuuurrrrreeeee
nd  end  e
o  mo
o  mo
o  mo
cccccooooommmmmpppppllllliaiaiaiaiancncncncnce  we  we  we  we  wititititith  ah  ah  ah  ah  apppppppppplllllicicicicicababababable  l
le  laaaaawswswswsws,  rules,  regulations  and
le  l
le  l
le  l
guidelines.

s  of
s  of
he  bus is is is is in e sn e sn e sn e sn e ss  of
he  bu
ies  on   tn   tn   tn   tn   the  bu
he  bu
ies  o
y   cy   caaaaarrrrrrrrrries  o
ies  o
y   cy   c
he  Commmmmppppp aaaaannnnny   c
he  Co
As  tAs  tAs  tAs  tAs  the  Co
he  Co
s  of
s  of
he  bu
ies  o
he  Co
mmmmmaaaaannnnnuuuuufffff a c ta c ta c ta c ta c tuuuuurrrrriiiiinnnnnggggg ,  Ex
t  tt  trrrrrade  of
ade  of
ade  of
t  tt  t
,  Exppppp ooooorrrrr t  at  at  at  at  and  Mnd  Mnd  Mnd  Mnd  Meeeeerrrrrc hc hc hc hc haaaaannnnnt  t
,  Ex
,  Ex
ade  of
ade  of
,  Ex
. As innnnnfofofofoforrrrrmememememed bd bd bd bd by ty ty ty ty the mhe mhe mhe mhe maaaaannnnnaaaaagggggeeeeemememememennnnnt,t,t,t,t,
rrrrready
. As i
eadymmmmmade Gade Gade Gade Gade Gaaaaarrrrrmememememennnnntttttsssss. As i
. As i
eady
eady
. As i
eady
ttttthe  fo
cificaaaaallllllylylylyly
cific
cific  laaaaaws,  sws,  sws,  sws,  sws,  spppppeeeeecific
cific
cific  l
he  follllllololololowwwwwiiiiinnnnng  lg  lg  lg  lg  laaaaaws  aws  aws  aws  aws  arrrrre  te  te  te  te  the  she  she  she  she  spppppeeeeecific  l
cific  l
he  fo
he  fo
cific
cific  l
he  fo
he Commmmmpppppaaaaannnnnyyyyy;;;;;
he Co
le to to to to to the Co
he Co
le t
aaaaapppppppppplllllicicicicicababababable t
le t
he Co
le t

1981.

2. The Indian Boilers Act, 1923.

3. The Child Labour (Prohibition and Regulation) Act,

1986.

4. The Contract Labour (Regulation and Abolition) Act,

1970.

5. The Factories Act, 1948.

6. The Fatal Accidents Act, 1855.

7. The Industrial Disputes Act, 1947.

8. The  Industrial  Employment  (Standing  Orders)  Act,

1946.

9. The  Industries  (Development  and  Regulation)  Act,

1951.

CoCoCoCoCommmmmpppppaaaaannnnny hy hy hy hy haaaaas es
s es
s es
s estttttababababablllllishe
ishe
ishe
ished vd vd vd vd vaaaaarrrrriouiouiouiouious ps ps ps ps pooooolllllicicicicicy ay ay ay ay and snd snd snd snd sysysysysysttttteeeeemmmmms as as as as asssss
s es
ishe
pppppeeeeer  tr  tr  tr  tr  the  ab
he  ab
he  ab
he  abovovovovove  ae  ae  ae  ae  apppppppppplllllicicicicicababababable  Ale  Ale  Ale  Ale  Actctctctcts  fos  fos  fos  fos  for  ar  ar  ar  ar  allllll  ul  ul  ul  ul  unnnnnititititits  as  as  as  as  and  wnd  wnd  wnd  wnd  wooooorrrrrkkkkk
he  ab
PPPPPlllllacacacacaceseseseses.....

We have Examined the records available and provided to us
during our visit to 3 (three) units/ Plants (A) 446 Udyog
Vihar Phase-V, Gurugram, Haryana (B) 16-17 Udyog Vihar
Phase  VI,  Khandsa  Gurugram  Haryana  (C)  274  Udyog
Vihar Phase-II, Gurugram Haryana.

For JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooood ad ad ad ad and As
nd As
nd As
nd Assososososociaciaciaciaciattttteseseseses
nd As
Company Secretaries

(C(C(C(C(CS JS JS JS JS Jaaaaayyyyyaaaaannnnnt K S
t K Sooooooooooddddd)))))
t K S
t K S
t K S
Proprietor
FCS: 4482, CP No. 22410

Place: Gurugram
Date: 13th July 2020
F004482B000444121
F004482B000444121
F004482B000444121
UDIN: F004482B000444121
F004482B000444121

36

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-IV to the Directors’ Report

FFFFFOOOOORRRRRM NM NM NM NM NOOOOO. MGT 9
. MGT 9
. MGT 9
. MGT 9
. MGT 9
EEEEEXXXXXTTTTTRRRRRAAAAACCCCCT OT OT OT OT OF AF AF AF AF ANNNNNNNNNNUUUUUAAAAAL RL RL RL RL REEEEETTTTTUUUUURRRRRNNNNN

l year er er er er endendendendended od od od od on 31.03.2020
n 31.03.2020
n 31.03.2020
l yea
As oAs oAs oAs oAs on fin fin fin fin finnnnnaaaaancianciancianciancial yea
l yea
n 31.03.2020
n 31.03.2020
l yea
ct, 2013 and rnd rnd rnd rnd ruuuuule 12(1) of t
he Commmmmpppppaaaaannnnnyyyyy
he Co
he Co
le 12(1) of t
le 12(1) of t
ct, 2013 a
he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act, 2013 a
ct, 2013 a
he Co
he Co
n 92 (3) of t
PPPPPuuuuursrsrsrsrsuuuuuaaaaannnnnt tt tt tt tt to So So So So Seeeeectctctctctioioioioion 92 (3) of t
n 92 (3) of t
le 12(1) of the Co
n 92 (3) of the Co
he Co
le 12(1) of t
ct, 2013 a
he Co
n 92 (3) of t
les, 2014.
les, 2014.
(M(M(M(M(Maaaaannnnnaaaaagggggeeeeemememememennnnnt & At & At & At & At & Admdmdmdmdmiiiiinnnnnisisisisistttttrrrrraaaaatttttioioioioionnnnn) Ru) Ru) Ru) Ru) Rules, 2014.
les, 2014.
les, 2014.

I.I.I.I.I. RRRRREGEGEGEGEGIIIIISSSSSTTTTTRRRRRAAAAATTTTTIIIIIOOOOON & ON & ON & ON & ON & OTTTTTHHHHHEEEEER DR DR DR DR DEEEEETTTTTAAAAAIIIIILLLLLSSSSS:::::

1 CIN
2 Registration Date
3 Name of the Company
4 Category/Sub-category of the Company
5 Address of the Registered office & contact details

6 Whether listed company
7 Name, Address & contact details of the Registrar

& Transfer Agent, if any.

L74899DL1989PLC036849
05.07.1989
Pearl Global Industries Limited
Public Limited Company / Limited by Shares
A-3, Community Centre, Naraina Industrial Area,
Phase-II, New Delhi-110028
Yes
Link Intime India Private Limited,
Noble Heights, 1st Floor, NH 2 C-1 Block LSC,
Near Shavitri Market, Janakpuri, New Delhi – 110 058
Tel: 011-41410592

IIIIII.I.I.I.I. PPPPPRRRRRIIIIINNNNNCCCCCIIIIIPPPPPAAAAAL BL BL BL BL BUUUUUSSSSSIIIIINNNNNEEEEESSSSSS AS AS AS AS ACCCCCTTTTTIIIIIVVVVVIIIIITTTTTIIIIIEEEEES OS OS OS OS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY

(All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

S.S.S.S.S. NNNNNaaaaame ame ame ame ame and Dnd Dnd Dnd Dnd Descescescescescrrrrriiiiiptptptptptioioioioion ofn ofn ofn ofn of
s / serrrrrvvvvviciciciciceseseseses
s / se
s / se
NNNNNooooo..... mmmmmaaaaaiiiiin pn pn pn pn prrrrroooooddddductuctuctuctucts / se
s / se

de of thehehehehe
de of t
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NNNNNIIIIIC CoC CoC CoC CoC Code of t
de of t
uct/serrrrrvvvvviciciciciceeeee
uct/se
uct/se
PPPPPrrrrroooooddddduct/se
uct/se

% t% t% t% t% to to to to to totototototaaaaal tl tl tl tl tuuuuurrrrrnovnovnovnovnoveeeeerrrrr
of tof tof tof tof the che che che che cooooommmmmpppppaaaaannnnnyyyyy

1 Manufacturing & Exporting of Readymade Gargments

141

100

IIIIIIIIIII.I.I.I.I. PPPPPAAAAARRRRRTTTTTIIIIICUCUCUCUCULLLLLAAAAARRRRRS OS OS OS OS OF HF HF HF HF HOOOOOLLLLLDDDDDIIIIINNNNNG, SG, SG, SG, SG, SUUUUUBBBBBSSSSSIIIIIDDDDDIIIIIAAAAARRRRRY AY AY AY AY ANNNNND AD AD AD AD ASSSSSSSSSSOOOOOCCCCCIIIIIAAAAATTTTTE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNIIIIIEEEEESSSSS

he Commmmmpppppaaaaannnnnyyyyy
he Co
he Co
s of t
s of t
nd addresesesesess of t
nd addr
nd addr
S.S.S.S.S. NNNNNaaaaame ame ame ame ame and addr
s of the Co
he Co
s of t
nd addr
NNNNNooooo.....

CCCCCIIIIIN/GN/GN/GN/GN/GLLLLLN/FN/FN/FN/FN/FCCCCCRRRRRNNNNN

HHHHHoooooldldldldldiiiiinnnnng/g/g/g/g/
ubsidiaiaiaiaiarrrrry/y/y/y/y/
ubsid
ubsid
SSSSSubsid
ubsid
AsAsAsAsAssososososociaciaciaciaciattttteeeee

% of% of% of% of% of AAAAApppppppppplllllicicicicicababababablelelelele
SSSSSeeeeectctctctctioioioioionnnnn

shshshshshaaaaarrrrreseseseses
heldheldheldheldheld

1

2

3

PPPPPeaeaeaeaearrrrrl Al Al Al Al Appppppppppaaaaarrrrrel Fel Fel Fel Fel Faaaaashshshshshioioioioionnnnns Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd
(Formerly Lerros Fashions India Limited)
A-3, Community Centre,
Naraina Industrial Area, Phase-II,
New Delhi-110028

PPPPPeaeaeaeaearrrrrl Glo
l Kauuuuushshshshshaaaaal Vl Vl Vl Vl Vikaikaikaikaikas Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd
l Ka
l Globbbbbaaaaal Ka
l Ka
l Glo
l Glo
l Ka
l Glo
(Formerly Pixel Industries Limited)))))
No.1/31, Thirukazhukundram Road,
Karunguzhi, Maduranthagam Taluk,
Kancheepuram, Tamil Nadu-603303

SSSSSBBBBBUUUUUYS EYS EYS EYS EYS E-----CoCoCoCoCommmmmmememememerrrrrccccce Le Le Le Le Liiiiimmmmmitititititeeeeeddddd
A-3, Community Centre,
Naraina Industrial Area,
Phase-II, New Delhi-110028

U74900DL2007PLC161396

Subsidiary

100

2(87)(ii)

U74110TN2014PLC096204

Subsidiary

100

2(87)(ii)

U52100DL2019PLC355345

Subsidiary

100

2(87)(ii)

4 NNNNNooooorp Krp Krp Krp Krp Knnnnnit Iit Iit Iit Iit Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd

C-52664(2959)/2004

Subsidiary

99.99

2(87)(ii)

Vill: North Khailpur, P.O. National
University, Gazipur, Bangladesh

Pearl Global Industries Limited     Annual Report 2019-20

37

Annexure-IV to the Directors’ Report

S.S.S.S.S. NNNNNaaaaame ame ame ame ame and addr
he Commmmmpppppaaaaannnnnyyyyy
he Co
he Co
s of t
nd addresesesesess of t
s of t
nd addr
nd addr
s of the Co
he Co
s of t
nd addr
NNNNNooooo.....

CCCCCIIIIIN/GN/GN/GN/GN/GLLLLLN/FN/FN/FN/FN/FCCCCCRRRRRNNNNN

5

6

7

8

9

PPPPPeaeaeaeaearrrrrl Glo
l Globbbbbaaaaal Fl Fl Fl Fl Faaaaarrrrreaeaeaeaeassssst Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd
l Glo
l Glo
l Glo
Unit: 801-3, 8/F, 9 Wing Hong Kong
Street Cheung Sha Wan, Kowloon,
Hong Kong

PPPPPeaeaeaeaearrrrrl Glo
l Globbbbbaaaaal (Hl (Hl (Hl (Hl (HK) LK) LK) LK) LK) Liiiiimmmmmitititititeeeeeddddd
l Glo
l Glo
l Glo
Unit: 801-3, 8/F, 9 Wing Hong Kong
Street Cheung Sha Wan, Kowloon,
Hong Kong

PPPPPGGGGGIIIIIC IC IC IC IC Innnnnvvvvvesesesesestttttmememememennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd
Unit: 801-3, 8/F, 9 Wing Hong Kong
Street Cheung Sha Wan, Kowloon,
Hong Kong

l Globbbbbaaaaal Fl Fl Fl Fl F.....ZZZZZ.E.E.E.E.E
l Glo
l Glo
PPPPPeaeaeaeaearrrrrl Glo
l Glo
SM-Office-E1-4013H,
Ajman Free Zone, Ajman, UAE

PPPPPrrrrrudeudeudeudeudennnnnt Ft Ft Ft Ft Faaaaashshshshshioioioioionnnnns Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd
29, Gareeb-E-Newaz Avenue,(4th Floor),
Sector-11, Uttara , Dhaka, Bangladesh

10

g Zhou) T) T) T) T) Texexexexextttttileileileileile
g Zhou
g Zhou
l Globbbbbaaaaal (Cl (Cl (Cl (Cl (Chhhhhaaaaannnnng Zhou
l Glo
l Glo
PPPPPeaeaeaeaearrrrrl Glo
g Zhou
l Glo
y Co., L., L., L., L., Ltttttddddd.....
y Co
y Co
TTTTTeeeeechchchchchnononononololololologgggg y Co
y Co
Changzhou City, Jiangsu Province, China

l Globbbbbaaaaal Vl Vl Vl Vl Vietietietietietnnnnnaaaaam Lm Lm Lm Lm Liiiiimmmmmitititititeeeeeddddd
l Glo
l Glo
11 VVVVViiiiin Pn Pn Pn Pn Peaeaeaeaearrrrrl Glo
l Glo
Unit: 801-3, 8/F, 9 Wing Hong Kong
Street Cheung Sha Wan, Kowloon,
Hong Kong

12

13

l Globbbbbaaaaal Vl Vl Vl Vl Vietietietietietnnnnnaaaaam Com Com Com Com Commmmmpppppaaaaannnnnyyyyy
l Glo
l Glo
PPPPPeaeaeaeaearrrrrl Glo
l Glo
LLLLLiiiiimmmmmitititititeeeeeddddd
Dinh Tri Commune, Bae Giang City,
Bae Giang Province, Vietnam

PPPPPeaeaeaeaearrrrrl Gr
l Graaaaassssss Cs Cs Cs Cs Crrrrreaeaeaeaeatttttioioioioionnnnns Ls Ls Ls Ls Liiiiimmmmmitititititeeeeeddddd
l Gr
l Gr
l Gr
Unit: 801-3, 8/F, 9 Wing Hong Kong
Street Cheung Sha Wan, Kowloon,
Hong Kong

A&B Innnnnvvvvvesesesesestttttmememememennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd
A&B I
A&B I
14 A&B I
A&B I
Po Box 60869, Dubai, UAE

15 DDDDDSSSSSSSSSSP Glo
P Glo
P Glo
P Globbbbbaaaaal Ll Ll Ll Ll Liiiiimmmmmitititititeeeeeddddd
P Glo

Unit: 801-3, 8/F, 9 Wing Hong Kong Street
Cheung Sha Wan, Kowloon, Hong Kong

16

PPPPPT PT PT PT PT Piiiiinnnnnnnnnnacle A
acle Aacle A
acle A
acle Appppppppppaaaaarrrrrelselselselsels
Graha Kirana Lt.1, Suite 103, JI. Yos
Sudarso Kav. 88, Menara Kelapa
Gading Kondominium Tower E605,
Kelapa Gading-Jakarta Utara, Indonesia

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

HHHHHoooooldldldldldiiiiinnnnng/g/g/g/g/
ubsidiaiaiaiaiarrrrry/y/y/y/y/
ubsid
ubsid
SSSSSubsid
ubsid
AsAsAsAsAssososososociaciaciaciaciattttteeeee

% of% of% of% of% of AAAAApppppppppplllllicicicicicababababablelelelele
SSSSSeeeeectctctctctioioioioionnnnn

shshshshshaaaaarrrrreseseseses
heldheldheldheldheld

Subsidiary

100

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

99.95

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

80

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

100

2(87)(ii)

Subsidiary

69.91

2(87)(ii)

38

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-IV to the Directors’ Report

IIIIIVVVVV..... SSSSSHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDIIIIINNNNNG PG PG PG PG PAAAAATTTTTTTTTTEEEEERRRRRNNNNN

(Equity share capital breakup as percentage of total equity)

ise Shaaaaarrrrre He He He He Hoooooldldldldldiiiiinnnnnggggg
ise Sh
(((((iiiii))))) CCCCCaaaaattttteeeeegggggooooorrrrryyyyy-----wwwwwise Sh
ise Sh
ise Sh

CCCCCaaaaattttteeeeegggggooooorrrrry  of
y  of
y  of
y  of
y  of
S hS hS hS hS haaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs

Individual/ HUF

AAAAA..... PPPPPrrrrrooooomotmotmotmotmoteeeeersrsrsrsrs
(1) IIIIIndndndndndiaiaiaiaiannnnn
a)
b) Central Govt
State Govt(s)
c)
d) Bodies Corp.
e) Banks / FI
f ) Any other
) (1)
) (1)
SSSSSub Tub Tub Tub Tub Totototototaaaaal (l (l (l (l (AAAAA) (1)
) (1)
) (1)

(2) FFFFFooooorrrrreigeigeigeigeignnnnn

a) NRI Individuals
b) Other Individuals
c) Bodies Corp.
d) Banks/FI
e) Any other
) (2)
) (2)
SSSSSub Tub Tub Tub Tub Totototototaaaaal (l (l (l (l (AAAAA) (2)
) (2)
) (2)
TTTTTOOOOOTTTTTAAAAAL (L (L (L (L (AAAAA)))))
ic  Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
ic  Sh
ic  Sh
B.B.B.B.B. PPPPPububububublllllic  Sh
ic  Sh
1.1.1.1.1. IIIIInsnsnsnsnstttttiiiiitttttutututututioioioioionsnsnsnsns

a) Mutual Funds
b) Banks / FI
c) Central Govt
d) State Govt(s)
e) Venture Capital Funds
f ) Alternate Investment Funds
g)
Insurance Companies
h) FIIs
i)
j) Others (specify)
SSSSSububububub-----tttttotototototaaaaal  (B)(1):-
l  (B)(1):-
l  (B)(1):-
l  (B)(1):-
l  (B)(1):-

Foreign Venture Capital Funds

2.2.2.2.2. NNNNNooooonnnnn-----IIIIInsnsnsnsnstttttiiiiitttttutututututioioioioionsnsnsnsns
a) Bodies Corp.
i) Indian

es held at tt tt tt tt thehehehehe
es held a
. of Shaaaaarrrrres held a
es held a
. of Sh
NNNNNooooo. of Sh
. of Sh
es held a
. of Sh
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

DDDDDeeeeemmmmmaaaaattttt

PPPPPhhhhhysicysicysicysicysicaaaaalllll

TTTTTotototototaaaaalllll

% of% of% of% of% of
TTTTTotototototaaaaalllll
ShShShShShaaaaarrrrreseseseses

. of Shaaaaarrrrres held a
NNNNNooooo. of Sh
es held attttt
es held a
es held a
. of Sh
. of Sh
es held a
. of Sh
he yearrrrr
he yea
he yea
nd of t
ttttthe ehe ehe ehe ehe end of t
nd of t
nd of the yea
he yea
nd of t

DDDDDeeeeemmmmmaaaaattttt

PPPPPhhhhhysicysicysicysicysicaaaaalllll

TTTTTotototototaaaaalllll

11,562,734
-
-
30
-
-
11,562,764

2,862,145
-
-
-
-
2,862,145
14,424,909

-
505,532
-
-
-
52,627
-
1,301,678
-
-
1,859,837

- 11,562,734
-
-
-
-
30
-
-
-
-
-
- 11,562,764

2,862,145
-
-
-
-
-
-
-
-
-
-
2,862,145
- 14,424,909

53.37% 11,562,734
-
0.00%
-
0.00%
30
0.00%
-
0.00%
-
0.00%
53.37% 11,562,764

13.21% 2,862,145
-
0.00%
-
0.00%
0.00%
-
0.00%
13.21% 2,862,145
66.58% 14,424,909

-
66
-
-
-
-
-
-
-
-
66

-
505,598
-
-
-
52,627
-
1,301,678
-
-
1,859,903

-
0.00%
491,585
2.33%
-
0.00%
-
0.00%
-
0.00%
-
0.24%
0.00%
-
6.01% 1,384,147
-
0.00%
0.00%
-
8.59% 1,875,732

-
-
-
-
-
-
-

-
-
-
-

-
-

-
66
-
-
-
-
-
-
-
-
66

11,562,734
-
-
30
-
-
11,562,764

2,862,145
-
-
-
-
2,862,145
14,424,909

-
491,651
-
-
-
-
-
1,384,147
-
-
1,875,798

%%%%%
CCCCChhhhhaaaaannnnngggggeeeee
ddddduuuuurrrrriiiiinnnnnggggg
he yearrrrr
ttttthe yea
he yea
he yea
he yea

% of% of% of% of% of
TTTTTotototototaaaaalllll
ShShShShShaaaaarrrrreseseseses

53.37%
0.00%
0.00%
0.00%
0.00%
0.00%
53.37%

13.21%
0.00%
0.00%
0.00%
0.00%
13.21%
66.58%

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
-2.76%
2.27%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00% -100.00%
0.00%
0.00%
6.34%
6.39%
0.00%
0.00%
0.00%
0.00%
0.85%
8.66%

528,842

863

529,705

2.45%

512868

863

513,731

2.37%

-3.02%

Pearl Global Industries Limited     Annual Report 2019-20

39

Annexure-IV to the Directors’ Report

CCCCCaaaaattttteeeeegggggooooorrrrry  of
y  of
y  of
y  of
y  of
S hS hS hS hS haaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs

b)

ii) Overseas
Individuals
i) Individual shareholders holding
nominal share capital upto
` 1 lakh

ii) Individual shareholders holding
nominal share capital in excess
of ` 1 lakh

c) NBFCs Registered with RBI
c) Others (specify)

Non Resident Indians(Non Repat)
Non Resident Indians (Repat)
Overseas Corporate Bodies
Foreign Nationals
Clearing Members
Trusts
Hindu Undivided Family
Foreign Bodies - D R
l  (B)(2):-
l  (B)(2):-
SSSSSububububub-----tttttotototototaaaaal  (B)(2):-
l  (B)(2):-
l  (B)(2):-
ic (B)
ic (B)
TTTTTotototototaaaaal  Pl  Pl  Pl  Pl  Pububububublllllic (B)
ic (B)
ic (B)
es held by  Cy  Cy  Cy  Cy  Cuuuuussssstttttooooodddddiaiaiaiaiannnnn
es held b
es held b
C.C.C.C.C. ShShShShShaaaaarrrrres held b
es held b
s & ADDDDDRRRRRsssss
s & A
s & A
fofofofofor Gr Gr Gr Gr GDDDDDRRRRRs & A
s & A
GrGrGrGrGraaaaand  Tnd  Tnd  Tnd  Tnd  Totototototaaaaal  (l  (l  (l  (l  (A+B+C)
A+B+C)
A+B+C)
A+B+C)
A+B+C)

g of Prrrrrooooomotmotmotmotmoteeeeerrrrr
g of P
(((((iiiiiiiiii))))) ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of P
g of P
g of P

ShShShShShaaaaarrrrrehoehoehoehoeholdeldeldeldelderrrrr’’’’’s  Ns  Ns  Ns  Ns  Naaaaamememememe

S.S.S.S.S.
NNNNNooooo.....

es held at tt tt tt tt thehehehehe
es held a
. of Shaaaaarrrrres held a
es held a
. of Sh
NNNNNooooo. of Sh
. of Sh
es held a
. of Sh
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

DDDDDeeeeemmmmmaaaaattttt

PPPPPhhhhhysicysicysicysicysicaaaaalllll

TTTTTotototototaaaaalllll

-

-

-

% of% of% of% of% of
TTTTTotototototaaaaalllll
ShShShShShaaaaarrrrreseseseses
0.00%

. of Shaaaaarrrrres held a
NNNNNooooo. of Sh
es held attttt
es held a
es held a
. of Sh
. of Sh
es held a
. of Sh
he yearrrrr
he yea
he yea
nd of t
ttttthe ehe ehe ehe ehe end of t
nd of t
nd of the yea
he yea
nd of t

DDDDDeeeeemmmmmaaaaattttt

PPPPPhhhhhysicysicysicysicysicaaaaalllll

TTTTTotototototaaaaalllll

-

-

-

%%%%%
CCCCChhhhhaaaaannnnngggggeeeee
ddddduuuuurrrrriiiiinnnnnggggg
he yearrrrr
ttttthe yea
he yea
he yea
he yea

0.00%

% of% of% of% of% of
TTTTTotototototaaaaalllll
ShShShShShaaaaarrrrreseseseses
0.00%

1,614,746

120,234

1,734,980

8.01% 1,482,191

117,439

1,599,630

7.38%

-7.80%

2,276,887

100

49,165
195,207
-
-
58,324
260
512,285
-
5,235,816
7,095,653
-----

-

-

-
22,212
-
-
-
-
-
-
143,309
143,375
-

2,276,887

10.51% 2,527,265

100

0.00%

-

49,165
217,419
-
-
58,324
260
512,285
-
5,379,125
7,239,028
-----

48,085
0.23%
179,674
1.00%
-
0.00%
-
0.00%
1,869
0.27%
260
0.00%
470,504
2.36%
0.00%
-
24.83% 5,222,716
33.42% 7,098,448
-
0.00%

-

-

-
22,212
-
-
-
-
-
-
140,514
140,580
-

2,527,265

11.67%

11.00%

-

0.00% -100.00%

48,085
201,886
-
-
1,869
260
470,504
-
5,363,230
7,239,028
-

-2.20%
0.22%
-7.14%
0.93%
0.00%
0.00%
0.00%
0.00%
0.01% -96.80%
0.00%
0.00%
-8.16%
2.17%
0.00%
0.00%
-0.30%
24.76%
0.00%
33.42%
0.00%
0.00%

21,520,562
21,520,562
21,520,562
21,520,562
21,520,562

21,523,357
21,523,357
100.00%
100.00%
21,663,937
21,663,937
143,375
143,375
21,523,357
100.00% 21,523,357
21,663,937 100.00%
143,375 21,663,937
21,523,357
100.00%
21,663,937
143,375
143,375

100.00%
100.00%
21,663,937
21,663,937
140,580
140,580
100.00%
21,663,937 100.00%
140,580 21,663,937
100.00%
21,663,937
140,580
140,580

0.00%
0.00%
0.00%
0.00%
0.00%

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng  ag  ag  ag  ag  at  tt  tt  tt  tt  thehehehehe
he yearrrrr
he yea
he yea
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of t
g of the yea
he yea
g of t

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng  ag  ag  ag  ag  at  tt  tt  tt  tt  thehehehehe
he yearrrrr
he yea
he yea
eeeeend of t
nd of t
nd of t
nd of the yea
he yea
nd of t

NNNNNooooo. of
. of
. of
. of
. of
ShShShShShaaaaarrrrreseseseses

% of% of% of% of% of
tttttotototototaaaaalllll
ShShShShShaaaaarrrrreseseseses
of tof tof tof tof thehehehehe
cccccooooommmmmpppppaaaaannnnnyyyyy

% of% of% of% of% of
ShShShShShaaaaarrrrreseseseses
PPPPPleleleleledddddgggggeeeeed/d/d/d/d/
eeeeencuncuncuncuncum bm bm bm bm beeeeerrrrreeeeeddddd
ttttto to to to to totototototaaaaalllll
shshshshshaaaaarrrrreseseseses

NNNNNooooo. of
. of
. of
. of
. of
ShShShShShaaaaarrrrreseseseses

% of% of% of% of% of
tttttotototototaaaaalllll
ShShShShShaaaaarrrrreseseseses
of tof tof tof tof thehehehehe
cccccooooommmmmpppppaaaaannnnnyyyyy

% of% of% of% of% of
ShShShShShaaaaarrrrreseseseses
PPPPPleleleleledddddgggggeeeeed/d/d/d/d/
eeeeencuncuncuncuncum bm bm bm bm beeeeerrrrreeeeeddddd
ttttto to to to to totototototaaaaalllll
shshshshshaaaaarrrrreseseseses

1 Mr. Pulkit Seth

2 Mrs. Payel Seth

6,947,621

32.07%

4,413,635

20.37%

3 Mr. Deepak Seth (NRI)

2,862,145

13.21%

4 Mrs. Shifalli Seth

5 M/s NIM International

Commerce LLP

201,478

30

0.93%

0.00%

NIL

NIL

NIL

NIL

NIL

6,947,621

32.07%

4,413,635

20.37%

2,862,145

13.21%

201,478

30

0.93%

0.00%

NIL

NIL

NIL

NIL

NIL

% ch% ch% ch% ch% chaaaaannnnngggggeeeee
iiiiin shn shn shn shn shaaaaarrrrreeeee
hohohohoholdldldldldiiiiinnnnnggggg
ddddduuuuurrrrriiiiinnnnnggggg
he yearrrrr
ttttthe yea
he yea
he yea
he yea

0.00%

0.00%

0.00%

0.00%

0.00%

40

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-IV to the Directors’ Report

e is no chaaaaannnnnggggge)e)e)e)e)
e is no ch
, if theheheheherrrrre is no ch
e is no ch
, if t
se spppppeeeeecifcifcifcifcifyyyyy, if t
, if t
se s
(((((iiiiiiiiiiiiiii) C) C) C) C) Chhhhhaaaaannnnnggggge ie ie ie ie in Pn Pn Pn Pn Prrrrrooooomotmotmotmotmoteeeeersrsrsrsrs’ Sh’ Sh’ Sh’ Sh’ Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng (g (g (g (g (ppppplealealealealease s
se s
e is no ch
, if t
se s

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

S.S.S.S.S.
NNNNNooooo.....

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe
he yearrrrr
he yea
he yea
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of t
g of the yea
he yea
g of t

CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
he yearrrrr
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea
he yea

At the beginning of the year

Date wise increase/decrease in promoters
shareholding during the year specifying the
reasons for increase/decrease (e.g. allotment/
transfer/bonus/sweat equity etc.

NNNNNooooo. of
. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses

14,424,909

No Change
duting
the year

% of t% of t% of t% of t% of totototototaaaaalllll
shshshshshaaaaarrrrreseseseses

NNNNNooooo. of
. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses

66.58% 14,424,909

% of t% of t% of t% of t% of totototototaaaaalllll
shshshshshaaaaarrrrreseseseses

66.58%

No Change No Change

No Change

At the end of the year

14,424,909

66.58% 14,424,909

66.58%

rs of GDDDDDRRRRRs as as as as and And And And And ADDDDDRRRRRs):s):s):s):s):
rs of G
rs of G
n Din Dirrrrreeeeectctctctctooooors, Prs, Prs, Prs, Prs, Prrrrrooooomotmotmotmotmoteeeeers ars ars ars ars and Hnd Hnd Hnd Hnd Hoooooldeldeldeldelders of G
n Din Di
n of tooooop tp tp tp tp teeeeen Shn Shn Shn Shn Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders (Ors (Ors (Ors (Ors (Otttttheheheheher tr tr tr tr thhhhhaaaaan Di
n of t
n of t
(((((iv)iv)iv)iv)iv) ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng Pg Pg Pg Pg Paaaaatttttttttteeeeerrrrrn of t
rs of G
n of t

NNNNNot Aot Aot Aot Aot Apppppppppplllllicicicicicababababablelelelele

r each of thehehehehe
r each of t
r each of t
FFFFFooooor each of t
S.S.S.S.S.
r each of t
p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs
p 10 sh
p 10 sh
NNNNNooooo..... TTTTTooooop 10 sh
p 10 sh

11111

eshbeshbhhhhhaaaaai Shi Shi Shi Shi Shaaaaahhhhh
eshbeshb
jiv Dhiiiiirrrrreshb
jiv Dh
jiv Dh
SSSSSaaaaannnnnjiv Dh
jiv Dh

DDDDDaaaaattttteeeee

RRRRReaeaeaeaeasososososonnnnn

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
he yearrrrr
he yea
he yea
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea

. of % of t% of t% of t% of t% of totototototaaaaalllll
. of
. of
NNNNNooooo. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

. of % of t% of t% of t% of t% of totototototaaaaalllll
. of
. of
NNNNNooooo. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

At the beginning of the year

01.04.2019

-

1,449,320

6.69%

1,449,320

Changes during the year

05.04.2019 Transfer

26,954

12.04.2019 Transfer

26.04.2019 Transfer

03.05.2019 Transfer

10.05.2019 Transfer

17.05.2019 Transfer

24.05.2019 Transfer

31.05.2019 Transfer

07.06.2019 Transfer

14.06.2019 Transfer

21.06.2019 Transfer

29.06.2019 Transfer

05.07.2019 Transfer

12.07.2019 Transfer

19.07.2019 Transfer

26.07.2019 Transfer

02.08.2019 Transfer

09.08.2019 Transfer

16.08.2019 Transfer

3,592

3,191

1,084

3,911

1,338

1,617

966

1,455

8,990

11,004

3,280

440

983

9,349

2,249

4,450

8,054

206

23.08.2019 Transfer

25,017

1,476,274

1,479,866

1,483,057

1,484,141

1,488,052

1,489,390

1,491,007

1,491,973

1,493,428

1,502,418

1,513,422

1,516,702

1,517,142

1,518,125

1,527,474

1,529,723

1,534,173

1,542,227

1,542,433

1,567,450

6.69%

6.81%

6.83%

6.85%

6.85%

6.87%

6.87%

6.88%

6.89%

6.89%

6.94%

6.99%

7.00%

7.00%

7.01%

7.05%

7.06%

7.08%

7.12%

7.12%

7.24%

Pearl Global Industries Limited     Annual Report 2019-20

41

Annexure-IV to the Directors’ Report

FFFFFooooor each of t
S.S.S.S.S.
r each of thehehehehe
r each of t
r each of t
r each of t
p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs
p 10 sh
p 10 sh
NNNNNooooo..... TTTTTooooop 10 sh
p 10 sh

DDDDDaaaaattttteeeee

RRRRReaeaeaeaeasososososonnnnn

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
he yearrrrr
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea
he yea

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

06.09.2019 Transfer

13.09.2019 Transfer

20.09.2019 Transfer

27.09.2019 Transfer

16

50

210

30

08.11.2019 Transfer

-49,402

06.12.2019 Transfer

10.01.2020 Transfer

17.01.2020 Transfer

14.02.2020 Transfer

21.02.2020 Transfer

06.03.2020 Transfer

20.03.2020 Transfer

9,679

910

6,953

7,719

7,226

2,400

33

At the end of the year

31.03.2020

22222

PPPPPrrrrreeeeemmmmmieieieieier Ir Ir Ir Ir Innnnnvvvvvesesesesestttttmememememennnnnt Ft Ft Ft Ft Fuuuuund Lnd Lnd Lnd Lnd Liiiiimmmmmitititititeeeeeddddd

At the beginning of the year

01.04.2019

Changes during the year

-

At the end of the year

31.03.2020

33333

LLLLLTS ITS ITS ITS ITS Innnnnvvvvvesesesesestttttmememememennnnnt Ft Ft Ft Ft Fuuuuund Lnd Lnd Lnd Lnd Liiiiimmmmmitititititeeeeeddddd

At the beginning of the year

01.04.2019

-

-

-

-

Changes during the year

12.04.2019 Transfer

19.04.2019 Transfer

26.04.2019 Transfer

03.05.2019 Transfer

10.05.2019 Transfer

17.05.2019 Transfer

24.05.2019 Transfer

31.05.2019 Transfer

07.06.2019 Transfer

14.06.2019 Transfer

21.06.2019 Transfer

29.06.2019 Transfer

05.07.2019 Transfer

12.07.2019 Transfer

19.07.2019 Transfer

1,051,231

-

4.85%

0.00%

250,447

1.16%

3,000

666

3,879

3,700

5,986

6,781

1,108

1,191

3,183

1,552

3,595

4,000

2,161

4,000

3,811

1,567,466

1,567,516

1,567,726

1,567,756

1,518,354

1,528,033

1,528,943

1,535,896

1,543,615

1,550,841

1,553,241

1,553,274

1,553,274

1,051,231

-

1,051,231

250,447

253,447

254,113

257,992

261,692

267,678

274,459

275,567

276,758

279,941

281,493

285,088

289,088

291,249

295,249

299,060

7.24%

7.24%

7.24%

7.24%

7.01%

7.05%

7.06%

7.09%

7.13%

7.16%

7.17%

7.17%

7.17%

4.85%

0.00%

4.85%

1.16%

1.17%

1.17%

1.19%

1.21%

1.24%

1.27%

1.27%

1.28%

1.29%

1.30%

1.32%

1.33%

1.34%

1.36%

1.38%

42

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-IV to the Directors’ Report

FFFFFooooor each of t
S.S.S.S.S.
r each of thehehehehe
r each of t
r each of t
r each of t
p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs
p 10 sh
p 10 sh
NNNNNooooo..... TTTTTooooop 10 sh
p 10 sh

DDDDDaaaaattttteeeee

RRRRReaeaeaeaeasososososonnnnn

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
he yearrrrr
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea
he yea

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

26.07.2019 Transfer

02.08.2019 Transfer

09.08.2019 Transfer

16.08.2019 Transfer

23.08.2019 Transfer

30.08.2019 Transfer

06.09.2019 Transfer

20.09.2019 Transfer

27.09.2019 Transfer

08.11.2019 Transfer

06.12.2019 Transfer

5,813

5,216

5,921

1,220

4,867

2,892

1,456

3,100

1,371

1,000

1,000

304,873

310,089

316,010

317,230

322,097

324,989

326,445

329,545

330,916

331,916

332,916

332,916

256,666

-

256,666

1.41%

1.43%

1.46%

1.46%

1.49%

1.50%

1.51%

1.52%

1.53%

1.53%

1.54%

1.54%

1.18%

0.00%

1.18%

199,981

200,281

200,281

-

175,470

115,389

115,404

115,804

127,101

127,101

0.92%

0.92%

0.92%

0.81%

0.00%

0.81%

0.53%

0.53%

0.53%

0.59%

0.59%

256,666

-

1.18%

0.00%

227,292

1.05%

227,292

1.05%

-

-

-

-

227,292

1.05%

175,470

0.81%

175,470

-

115,389

0.53%

15

400

Changes during the year

01.11.2019 Transfer

300

199,981

0.92%

At the end of the year

31.03.2020

n of Indndndndndiaiaiaiaia
n of I
n of I
e Corprprprprpooooorrrrraaaaatttttioioioioion of I
e Co
e Co
44444 GGGGGeeeeenenenenenerrrrraaaaal Il Il Il Il Innnnnsssssuuuuurrrrraaaaancncncncnce Co
n of I
e Co

At the beginning of the year

01.04.2019

Changes during the year

-

At the end of the year

31.03.2020

55555

n of Indndndndndiaiaiaiaia
n of I
n of I
e Corprprprprpooooorrrrraaaaatttttioioioioion of I
e Co
e Co
ife Innnnnsssssuuuuurrrrraaaaancncncncnce Co
ife I
ife I
LLLLLife I
n of I
e Co
ife I

At the beginning of the year

01.04.2019

Changes during the year

-

At the end of the year

31.03.2020

66666

eshbeshbhhhhhaaaaaiiiii
eshbeshb
i Dhiiiiirrrrreshb
i Dhi Dh
i Dh
ShShShShShaaaaah Sh Sh Sh Sh Saaaaannnnnjivbjivbjivbjivbjivbhhhhhaaaaai Dh

At the beginning of the year

01.04.2019

-

-

-

-

-

-

-

At the end of the year

31.03.2020

77777

VVVVViiiiirrrrraaaaat St St St St Seeeeerrrrrvvvvvicicicicices Les Les Les Les LLLLLLPPPPP

At the beginning of the year

01.04.2019

Changes during the year

-

At the end of the year

31.03.2020

88888

ShShShShShaaaaah Kh Kh Kh Kh Krrrrriiiiinnnnnabababababeeeeen Sn Sn Sn Sn Saaaaannnnnjivbjivbjivbjivbjivbhhhhhaaaaaiiiii

At the beginning of the year

01.04.2019

-

-

-

Changes during the year

06.12.2019 Transfer

13.12.2019 Transfer

At the end of the year

31.03.2020

20.12.2019 Transfer

11,297

Pearl Global Industries Limited     Annual Report 2019-20

43

Annexure-IV to the Directors’ Report

FFFFFooooor each of t
S.S.S.S.S.
r each of thehehehehe
r each of t
r each of t
r each of t
p 10 shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs
p 10 sh
p 10 sh
NNNNNooooo..... TTTTTooooop 10 sh
p 10 sh

DDDDDaaaaattttteeeee

RRRRReaeaeaeaeasososososonnnnn

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
he yearrrrr
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea
he yea

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

99999 NNNNNiiiiirrrrrmmmmmaaaaal Hl Hl Hl Hl Hiiiiirrrrroooooo Bo Bo Bo Bo Bhhhhhaaaaarrrrrwwwwwaaaaannnnniiiii

At the beginning of the year

01.04.2019

Changes during the year

-

At the end of the year

31.03.2020

1010101010 VVVVVishishishishishaaaaal Rl Rl Rl Rl Raaaaameshbmeshbmeshbmeshbmeshbhhhhhaaaaai Pi Pi Pi Pi Paaaaatttttelelelelel

At the beginning of the year

01.04.2019

-

-

-

Changes during the year

15.11.2019 Transfer

13.12.2019 Transfer

At the end of the year

31.03.2020

n Globbbbbaaaaal Sl Sl Sl Sl Seeeeecucucucucurrrrritititititiesiesiesiesies
n Glo
n Glo
1111111111 RRRRRajaajaajaajaajasssssttttthhhhhaaaaan Glo
n Glo
PPPPPrrrrrivivivivivaaaaattttte Le Le Le Le Liiiiimmmmmitititititeeeeeddddd

110,000

0.51%

110,000

-

-

91,013

1,974

0.00%

0.42%

-

110,000

-

91,013

92,987

92,987

At the beginning of the year

01.04.2019

-

100,008

0.46%

100,008

Changes during the year

12.04.2019 Transfer

10.05.2019 Transfer

24.05.2019 Transfer

31.05.2019 Transfer

09.08.2019 Transfer

29.11.2019 Transfer

20.12.2019 Transfer

27.12.2019 Transfer

31.01.2020 Transfer

At the end of the year

31.03.2020

g of Dirrrrreeeeectctctctctooooors ars ars ars ars and Knd Knd Knd Knd Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel:::::
g of Di
(v)(v)(v)(v)(v) ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of Di
g of Di
g of Di

-100

-2,544

-200

-5,639

-1,282

-6,515

-14,013

-2,314

1,863

99,908

97,364

97,164

91,525

90,243

83,728

69,715

67,401

69,264

69,264

0.51%

0.00%

0.51%

0.00%

0.42%

0.43%

0.43%

0.46%

0.46%

0.45%

0.45%

0.42%

0.42%

0.39%

0.32%

0.31%

0.32%

0.32%

S.S.S.S.S.
NNNNNooooo.....

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of each Di
g of each Dirrrrreeeeectctctctctooooorsrsrsrsrs
g of each Di
g of each Di
g of each Di
nd each Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaialllll
nd each K
nd each K
aaaaand each K
nd each K

DDDDDaaaaattttteeeee

RRRRReaeaeaeaeasososososonnnnn

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
he yearrrrr
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea
he yea

PPPPPeeeeersorsorsorsorsonnnnnnelnelnelnelnel

11111 MMMMMrrrrr. D. D. D. D. Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Seteteteteth, Ch, Ch, Ch, Ch, Chhhhhaaaaaiiiiirrrrrmmmmmaaaaannnnn

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

At the beginning of the year

01.04.2019

-

2,862,145

13.21%

2,862,145

13.21%

Changes during the year

No Change

At the end of the year

31.03.2020

22222 MMMMMrrrrr. P. P. P. P. Puuuuulllllkkkkkit Sit Sit Sit Sit Seteteteteth, Mh, Mh, Mh, Mh, Maaaaannnnnaaaaagggggiiiiinnnnng Di
g Di
g Di
g Dirrrrreeeeectctctctctooooorrrrr
g Di

2,862,145

13.21%

At the beginning of the year

01.04.2019

6,947,621

32.07%

6,947,621

32.07%

Changes during the year

At the end of the year

31.03.2020

6,947,621

32.07%

No Change

44

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-IV to the Directors’ Report

S.S.S.S.S.
NNNNNooooo.....

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of each Di
g of each Dirrrrreeeeectctctctctooooorsrsrsrsrs
g of each Di
g of each Di
g of each Di
nd each Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaialllll
nd each K
nd each K
aaaaand each K
nd each K

DDDDDaaaaattttteeeee

RRRRReaeaeaeaeasososososonnnnn

ShShShShShaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng ag ag ag ag at tt tt tt tt thehehehehe
he yearrrrr
he yea
he yea
g of t
g of t
bbbbbeeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t

CCCCCuuuuummmmmuuuuulllllaaaaatttttivivivivive She She She She Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg
he yearrrrr
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea
he yea

PPPPPeeeeersorsorsorsorsonnnnnnelnelnelnelnel

h, Wholelelelele-----TTTTTiiiiime Dime Dime Dime Dime Dirrrrreeeeectctctctctooooorrrrr
h, Who
33333 MMMMMrsrsrsrsrs. Sh. Sh. Sh. Sh. Shifififififaaaaalllllllllli Si Si Si Si Seteteteteth, Who
h, Who
h, Who

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

. of % of t% of t% of t% of t% of totototototaaaaalllll
NNNNNooooo. of
. of
. of
. of
shshshshshaaaaarrrrreseseseses
shshshshshaaaaarrrrreseseseses

At the beginning of the year

01.04.2019

201,478

0.93%

201,478

0.93%

Changes during the year

At the end of the year

31.03.2020

201,478

0.93%

No Change

ish, Wholelelelele-----TTTTTiiiiime Dime Dime Dime Dime Dirrrrreeeeectctctctctooooorrrrr
ish, Who
44444 MMMMMrrrrr. V. V. V. V. Viiiiinononononod Vd Vd Vd Vd Vaaaaaish, Who
ish, Who
ish, Who

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

t Dirrrrreeeeectctctctctooooorrrrr
t Di
t Di
55555 MMMMMrrrrr. C. C. C. C. Chhhhhititititittttttrrrrraaaaannnnnjajajajajan Dn Dn Dn Dn Duuuuuaaaaa, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di
t Di

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

t Dirrrrreeeeectctctctctooooorrrrr
t Di
t Di
66666 MMMMMrrrrr. A. A. A. A. Annnnnil Nil Nil Nil Nil Naaaaayyyyyaaaaarrrrr, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di
t Di

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

t Dirrrrreeeeectctctctctooooorrrrr
t Di
t Di
77777 MMMMMrrrrr. R. R. R. R. Rajajajajajeeeeendrndrndrndrndra Ka Ka Ka Ka Kuuuuummmmmaaaaar Ar Ar Ar Ar Anejanejanejanejaneja, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di
t Di

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

t Dirrrrreeeeectctctctctooooorrrrr
t Di
t Di
ishek Goooooyyyyyaaaaalllll, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di
ishek G
ishek G
88888 MMMMMrrrrr. A. A. A. A. Abbbbbhhhhhishek G
t Di
ishek G

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

t Dirrrrreeeeectctctctctooooorrrrr
t Di
ika Bika Bhhhhhuuuuupppppaaaaatttttkakakakakarrrrr, N, N, N, N, Nooooonnnnn-----ExExExExExeeeeecucucucucutttttivivivivive Ie Ie Ie Ie Indendendendendepppppeeeeendendendendendennnnnt Di
t Di
ika Bika B
99999 MMMMMrsrsrsrsrs. M. M. M. M. Madadadadadhhhhhuuuuulllllika B
t Di

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

l Officeeeeerrrrr
l Offic
1010101010 MMMMMrrrrr. R. R. R. R. Raaaaaggggghhhhhaaaaav Gv Gv Gv Gv Gaaaaargrgrgrgrg, C, C, C, C, Chhhhhief Fief Fief Fief Fief Fiiiiinnnnnaaaaancianciancianciancial Offic
l Offic
l Offic

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

1111111111 MMMMMrrrrr. S. S. S. S. Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll, Co
, Co
, Co
, Commmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy
, Co

At the beginning of the year

01.04.2019

Changes during the year

At the end of the year

31.03.2020

-

0.00%

No Change

-

-

No Change

-

-

No Change

-

-

No Change

-

-

No Change

-

-

No Change

-

-

No Change

-

-

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

No Change

-

0.00%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Pearl Global Industries Limited     Annual Report 2019-20

45

Annexure-IV to the Directors’ Report

VVVVV.....

IIIIINNNNNDDDDDEEEEEBBBBBTTTTTEEEEEDDDDDNNNNNEEEEESSSSSSSSSS

Indebtedness of the Company including interest outstanding/accrued but not due for payment.

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

SSSSSeeeeecucucucucurrrrreeeeed Ld Ld Ld Ld Loooooaaaaannnnnsssss
g depppppositositositositositsssss
g de
g de
exexexexexclclclclcludududududiiiiinnnnng de
g de

UUUUUnnnnnsesesesesec uc uc uc uc urrrrreeeeeddddd
LLLLLoooooaaaaannnnnsssss

DDDDDeeeeepppppositositositositositsssss

(Amount. in `)

TTTTTotototototaaaaalllll
dnessssss
dnes
dnes
ndebteeeeednes
IIIIIndebt
ndebt
ndebt
dnes
ndebt

l yearrrrr
he finnnnnaaaaancianciancianciancial yea
l yea
l yea
he fi
he fi
g of t
dness as as as as at tt tt tt tt the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of t
dnes
ndebteeeeednes
dnes
IIIIIndebt
ndebt
ndebt
g of the fi
l yea
he fi
g of t
dnes
ndebt

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

i+ii+iii)))))
TTTTTotototototaaaaal (l (l (l (l (i+ii+iii
i+ii+iii
i+ii+iii
i+ii+iii

l yearrrrr
l yea
l yea
he finnnnnaaaaancianciancianciancial yea
he fi
he fi
dness ds ds ds ds duuuuurrrrriiiiinnnnng tg tg tg tg the fi
dnes
dnes
ndebteeeeednes
ndebt
ndebt
CCCCChhhhhaaaaannnnnggggge ie ie ie ie in In In In In Indebt
l yea
he fi
dnes
ndebt

* Addition

* Reduction

Net Change

l yearrrrr
l yea
l yea
he finnnnnaaaaancianciancianciancial yea
he fi
he fi
nd of t
nd of t
dness as as as as at tt tt tt tt the ehe ehe ehe ehe end of t
dnes
dnes
ndebteeeeednes
ndebt
ndebt
IIIIIndebt
nd of the fi
l yea
he fi
nd of t
dnes
ndebt

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i+ii+iii)

2,025,459,287

-

2,467,226

2,027,926,513

15,435,254,586

15,239,080,081

196,174,505

2,221,633,792

-

3,748,058

2,225,381,850

-

-

-

-

-

-

-

-

-

-

-

VVVVVI.I.I.I.I. RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON ON ON ON ON OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRS AS AS AS AS ANNNNND KD KD KD KD KEEEEEY MY MY MY MY MAAAAANNNNNAAAAAGGGGGEEEEERRRRRIIIIIAAAAAL PL PL PL PL PEEEEERRRRRSSSSSOOOOONNNNNNNNNNEEEEELLLLL

nd/ond/or Mr Mr Mr Mr Maaaaannnnnaaaaagggggeeeeerrrrr:::::
nd/ond/o
, Wholelelelele-----tttttiiiiime Dime Dime Dime Dime Dirrrrreeeeectctctctctooooors ars ars ars ars and/o
, Who
, Who
g Dirrrrreeeeectctctctctooooorrrrr, Who
g Di
g Di
AAAAA..... RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to Mo Mo Mo Mo Maaaaannnnnaaaaagggggiiiiinnnnng Di
, Who
g Di

rs  of  Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn
rs  of  R
rs  of  R
PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars  of  R
rs  of  R

S.S.S.S.S.
NNNNNooooo.....

me of MD/WD/WD/WD/WD/WTTTTTD/  MD/  MD/  MD/  MD/  Maaaaannnnnaaaaagggggeeeeerrrrr
me of M
me of M
NNNNNaaaaame of M
me of M

-

-

-

-

2,025,459,287

-

2,467,226

2,027,926,513

- 15,435,254,586

- 15,239,080,081

-

-

-

-

-

196,174,505

2,221,633,792

-

3,748,058

2,225,381,850

TTTTTotototototaaaaalllll
AAAAAmoumoumoumoumounnnnnttttt
 i i i i in n n n n `

Name

Designation

1

Gross salary

MMMMMrrrrr. P. P. P. P. Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh

MMMMMrsrsrsrsrs.  Sh.  Sh.  Sh.  Sh.  Shifififififaaaaalllllllllli  Si  Si  Si  Si  Setetetetethhhhh

MMMMMrrrrr.  V.  V.  V.  V.  Viiiiinononononod  Vd  Vd  Vd  Vd  Vaaaaaishishishishish

Managing Director Whole-Time Director Whole-Time Director

(a) Salary as per provisions contained in section 17(1)

15,500,000

6,875,000

1,684,322

24,059,322

of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

28,800

28,800

43,542

101,142

(c) Profits in lieu of salary under section 17(3)

Income- tax Act, 1961

2

3

4

Stock Option

Sweat Equity

Commission

-

-

as % of profit

others, specify

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5 Others, please specify (Provident Fund)

Total (A)

Ceiling as per the Act

19,800

15,548,600

19,800

6,923,600

21,600

61,200

1,749,464

24,221,664

As per Schedule-V of the Companies Act, 2013

46

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-IV to the Directors’ Report

r Dirrrrreeeeectctctctctooooorsrsrsrsrs
r Di
B.B.B.B.B. RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to oto oto oto oto otheheheheher Di
r Di
r Di

rs  of  Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn
rs  of  R
PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars  of  R
rs  of  R
rs  of  R

S.S.S.S.S.
NNNNNooooo.....

1

Independent Directors

me  of  Dirrrrreeeeectctctctctooooorsrsrsrsrs
me  of  Di
NNNNNaaaaame  of  Di
me  of  Di
me  of  Di

ishek MMMMMrsrsrsrsrs.  M.  M.  M.  M.  Madadadadadhhhhhuuuuulllllikaikaikaikaika
MMMMMrrrrr.  C.  C.  C.  C.  Chhhhhititititittttttrrrrraaaaannnnnjajajajajannnnn MMMMMrrrrr.  A.  A.  A.  A.  Annnnnil  Nil  Nil  Nil  Nil  Naaaaayyyyyaaaaarrrrr MMMMMrrrrr.  R.  R.  R.  R.  Rajajajajajeeeeendrndrndrndrndraaaaa MMMMMrrrrr.  A.  A.  A.  A.  Abbbbbhhhhhishek
ishek
ishek
ishek
BBBBBhhhhhuuuuupppppaaaaatttttkakakakakarrrrr
GGGGGoooooyyyyyaaaaalllll

KKKKKuuuuummmmmaaaaar  Ar  Ar  Ar  Ar  Anejanejanejanejaneja

DDDDDuuuuuaaaaa

Fee for attending board meetings

Commission

Others, please specify ( for attending
Independent Directors Meeting)

Total (1)

20,000

-

10,000

40,000

-

10,000

10,000

-

-

40,000

-

10,000

30,000

50,000

10,000

50,000

2

Other Non-Executive Directors

MMMMMrrrrr.  D.  D.  D.  D.  Deeeeeeeeeepppppaaaaak  Sk  Sk  Sk  Sk  Setetetetethhhhh

Fee for attending board committee meetings

20,000

Commission

Others, please specify

Total (2)

Total (B)=(1+2)

Total Managerial Remuneration

Overall Ceiling as per the Act

-

-

20,000

50,000

-

-

-

-

-

-

-

-

-

-

-

-

50,000

10,000

50,000

As per Schedule-V of Companies Act, 2013

nel otheheheheher tr tr tr tr thhhhhaaaaan Mn Mn Mn Mn MD/MD/MD/MD/MD/Maaaaannnnnaaaaagggggeeeeer/Wr/Wr/Wr/Wr/WTTTTTDDDDD
nel ot
nel ot
C.C.C.C.C. RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to Ko Ko Ko Ko Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnel ot
nel ot

rs of Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn
rs of R
rs of R
PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of R
rs of R

me of Keeeeey My My My My Maaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel
me of K
me of K
NNNNNaaaaame of K
me of K

S.S.S.S.S.
NNNNNooooo.....

-

-

-

-

-

-

-

-

-

TTTTTotototototaaaaalllll
AAAAAmoumoumoumoumounnnnnttttt
 i i i i in n n n n `

110,000

-

30,000

140,000

20,000

-

-

20,000

160,000

24,381,664

TTTTTotototototaaaaalllll
AAAAAmoumoumoumoumounnnnnttttt
 i i i i in n n n n `````

NNNNNaaaaam em em em em e

DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn

1 Gross salary

MMMMMrrrrr. R. R. R. R. Raaaaaggggghhhhhaaaaav Gv Gv Gv Gv Gaaaaargrgrgrgrg MMMMMrrrrr. S. S. S. S. Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll

l Officeeeeerrrrr
l Offic
l Offic
ief Fiiiiinnnnnaaaaancianciancianciancial Offic
ief F
ief F
CCCCChhhhhief F
l Offic
ief F

C oC oC oC oC ommmmmpppppaaaaannnnny  Sy  Sy  Sy  Sy  Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy

(a) Salary as per provisions contained in section 17(1)

3,443,755

1,683,482

5,127,237

of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

(c) Profits in lieu of salary under section 17(3)

Income- tax Act, 1961

2

3

Stock Option

Sweat Equity

4 Commission

-

-

as % of profit

others, specify

5 Others, please specify

Total

-

-

-

-

-

-

-

-

32,359

32,359

-

-

-

-

-

-

-

-

-

-

-

-

3,443,755

1,715,841

5,159,596

Pearl Global Industries Limited     Annual Report 2019-20

47

Annexure-IV to the Directors’ Report

VVVVVIIIIII. PI. PI. PI. PI. PEEEEENNNNNAAAAALLLLLTTTTTIIIIIEEEEES / PS / PS / PS / PS / PUUUUUNNNNNIIIIISSSSSHHHHHMMMMMEEEEENNNNNT/ CT/ CT/ CT/ CT/ COOOOOMMMMMPPPPPOOOOOUUUUUNNNNNDDDDDIIIIINNNNNG OG OG OG OG OF OF OF OF OF OFFEFFEFFEFFEFFENNNNNCCCCCEEEEESSSSS:::::

TTTTTypypypypypeeeee

n of thehehehehe
n of t
SSSSSeeeeectctctctctioioioioion of t
n of t
n of t
CoCoCoCoCommmmmpppppaaaaannnnnies Aies Aies Aies Aies Actctctctct

BBBBBrrrrriefiefiefiefief
DDDDDescescescescescrrrrriiiiiptptptptptioioioioionnnnn

ils of Peeeeennnnnaaaaalllllttttty/y/y/y/y/
ils of P
DDDDDetetetetetaaaaails of P
ils of P
ils of P
PPPPPuuuuunnnnnishishishishishmememememennnnnt/t/t/t/t/
CoCoCoCoCommmmmpppppouououououndndndndndiiiiinnnnnggggg
fefefefefees ies ies ies ies immmmmppppposeoseoseoseoseddddd

AAAAAuuuuuttttthohohohohorrrrrititititity [Ry [Ry [Ry [Ry [RD /D /D /D /D / AAAAAppppppppppeaeaeaeaeal ml ml ml ml made,
ade,
ade,
ade,
ade,
if aif aif aif aif annnnny (y (y (y (y (gggggiviviviviveeeee
NNNNNCCCCCLLLLLT/CT/CT/CT/CT/COOOOOUUUUURRRRRTTTTT ]]]]]
ils)ils)
DDDDDetetetetetaaaaails)
ils)ils)

AAAAA..... CCCCCOOOOOMMMMMPPPPPAAAAANNNNNYYYYY

Penalty

Punishment

Compounding

B.B.B.B.B. DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS

Penalty

Punishment

Compounding

Nil

Nil

Nil

Nil

Nil

Nil

C.C.C.C.C. OOOOOTTTTTHHHHHEEEEER OR OR OR OR OFFIFFIFFIFFIFFICCCCCEEEEERRRRRS IS IS IS IS IN DN DN DN DN DEEEEEFFFFFAAAAAUUUUULLLLLTTTTT

Penalty

Punishment

Compounding

Nil

Nil

Nil

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

NNNNNIIIIILLLLL

Annexure-V to the Directors’ Report

RRRRRelelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttty dy dy dy dy disclos
isclos
isclos
isclosuuuuurrrrre ue ue ue ue undendendendender rr rr rr rr reeeeeggggguuuuulllllaaaaatttttioioioioion 34 of l
n 34 of l
n 34 of l
n 34 of lisisisisistttttiiiiinnnnng rg rg rg rg reeeeeggggguuuuulllllaaaaatttttioioioioionnnnnsssss
isclos
n 34 of l

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

N.A

LLLLLoooooaaaaan / An / An / An / An / Adddddvvvvvaaaaancncncncnceseseseses

NNNNNaaaaame of P
me of P
me of P
me of Paaaaarrrrrtttttyyyyy
me of P

PDS Multinational Limited India

Pearl Global Fareast Limited

s (Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrres)es)es)es)es)
s (Eq
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts (Eq
s (Eq
s (Eq

me of Paaaaarrrrrtttttyyyyy
me of P
NNNNNaaaaame of P
me of P
me of P

Pearl Global Fareast Limited

Norp Knit Industries Ltd

Pearl Apparel Fashions Limited

Pearl Apparel Fashions Limited (Preference Shares)

Pearl Global (HK) Limited

Pearl Global Kaushal Vikas Limited
(Formerly Pixel Industries Ltd.)

SBUYS E-Commerce Limited

SSSSStttttaaaaatttttuuuuusssss

Associates

Subsidiary

SSSSStttttaaaaatttttuuuuusssss

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

(` in Lakh)

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as os os os os onnnnn
31.03.2020
31.03.2020
31.03.2020
31.03.2020
31.03.2020

MMMMMaaaaaxixixixiximmmmmuuuuummmmm
he yearrrrr
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea
he yea

300.00

497.57

300.00

497.57

(` in Lakh)

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as os os os os onnnnn
31.03.2020
31.03.2020
31.03.2020
31.03.2020
31.03.2020

MMMMMaaaaaxixixixiximmmmmuuuuummmmm
he yearrrrr
he yea
he yea
ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea

2,797.29

2,468.53

1,648.35

300.00

6,152.32

5.00

1.00

2,797.29

2,468.53

1,648.35

300.00

6,152.32

5.00

1.00

48

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-VI to the Directors’ Report

he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act, 2013
ct, 2013
ct, 2013
he Co
he Co
n 186 of t
rs of loaaaaannnnns, gs, gs, gs, gs, guuuuuaaaaarrrrraaaaannnnnttttteeeeees oes oes oes oes or ir ir ir ir innnnnvvvvvesesesesestttttmememememennnnnttttts us us us us undendendendender Sr Sr Sr Sr Seeeeectctctctctioioioioion 186 of t
n 186 of t
rs of lo
PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of lo
rs of lo
ct, 2013
n 186 of the Co
ct, 2013
he Co
n 186 of t
rs of lo

[Pursuant to Section 134 (3)(g) of the Companies Act, 2013]

SlSlSlSlSl..... NNNNNaaaaame of t
he Commmmmpppppaaaaannnnnyyyyy
he Co
he Co
me of t
me of t
me of the Co
he Co
me of t
NNNNNooooo.....

1

2

3

Pearl Global (HK) Limited

PDS Multinational Fashions Limited

Pearl Global Fareast Limited

4 Norp Knit Industries Limited

Pearl Apparel Fashions Limited

Pearl Apparel Fashions Limited (Preference Shares)

Pearl Global Kaushal Vikas Limited
(Formerly Pixel Industries Limited)

SBUYS E-Commerce Limited

5

6

7

8

NNNNNotototototeeeee:::::

LLLLLoooooaaaaannnnnsssss

GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeseseseses

IIIIInnnnnvvvvvesesesesestttttmememememennnnntttttsssss

(((((````` i i i i in Lan Lan Lan Lan Lakkkkkhhhhh)))))

-

24,124.80

6,152.32

300.00

497.57

-

-

-

-

-

-

-

7,967.43

-

-

-

-

5.00

2,797.29

2,468.53

1,648.35

300.00

5.00

1.00

1.

Investment are in equity shares, unless otherwise mentioned

2. Guarantees are issued to Banks to secure the facilities extended to these Companies

Place: Gurugram
Date: October 07, 2020

For and on behalf of the Board
for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD

(D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H)
CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN
DIN 00003021

Pearl Global Industries Limited     Annual Report 2019-20

49

Annexure-VII to the Directors’ Report

[Pursuant to Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

SlSlSlSlSl.....
NNNNNooooo.....

I

II

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Disclosuuuuurrrrreseseseses
Disclos
Disclos
Disclos
Disclos

The ratio of the remuneration of each Director to the median remuneration Mr. Pulkit Seth (VC&MD)
Mrs. Shifalli Seth (WTD)
of the employees for the financial year
Mr. Vinod Vaish (WTD)

The percentage increase in remuneration of each Director, CFO, CS in the Mr. Pulkit Seth (VC&MD)
Mrs. Shifalli Seth (WTD)
financial year
Mr. Vinod Vaish (WTD)
Chief Financial Officer
Company Secretary

61.62x
25.67x
6.07x

50%
0%
7.90%
0%
6.47%

III The percentage increase in the median remuneration of employees in the

 financial year

The median remuneration of the employees in the financial year was
 increased by 5%.

IV The number of permanent employees on the rolls of the Company

There were approx 6,840 permanent employees as on 31st March, 2020

V

Average percentile increase already made in the salaries of employees other Average percentile increase in the salary of employees other than managerial
than the managerial personnel in the last financial year and its comparison
with the percentile increase in the managerial remuneration and justification Average percentile increase in the salary of Managerial personnel in the last
thereof and point out if there are any exceptional circumstances for
increase in the managerial remuneration;

personnel in the last financial year was 5%.

financial year was 21.45%.

VI Affirmation that the remuneration is as per the remuneration

The remuneration paid to Directors/employees is as per remuneration policy.

policy of the Company

Place: Gurugram
Date: October 07, 2020

For and on behalf of the Board
for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD

(D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H)
CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN
DIN 00003021

50

Pearl Global Industries Limited     Annual Report 2019-20

Annexure-VIII to the Directors’ Report

[Pursuant to Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as
amended

List of top ten employee in terms of remuneration drawn

SlSlSlSlSl..... NNNNNaaaaame  ofme  ofme  ofme  ofme  of
NNNNNooooo..... EEEEEmmmmmppppplololololoyeyeyeyeyeeeeee

DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn

EdEdEdEdEducucucucucaaaaatttttioioioioionnnnnaaaaalllll
qqqqquuuuuaaaaalllllific
ificificaaaaatttttioioioioionnnnn
ificific

AgAgAgAgAgeeeee

ExExExExExpppppeeeeerrrrrieieieieiencncncncnceeeee
(((((iiiiin yea
n yea
n yea
n years)rs)rs)rs)rs)
n yea

DDDDDaaaaattttte  of
e  of
e  of
e  of
e  of
JJJJJoooooiiiiinnnnniiiiinnnnnggggg

RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn PPPPPrrrrreeeeevvvvviouiouiouiouiousssss
id (`))))) eeeeemmmmmppppplololololoyyyyymememememennnnnttttt
pppppaaaaaid (
id (
id (
id (

PPPPPeeeeerrrrrccccceeeeennnnntttttaaaaagggggeeeee WhetWhetWhetWhetWhetheheheheherrrrr
of  eof  eof  eof  eof  eqqqqquuuuuititititityyyyy
eeeeemmmmmppppplololololoyeyeyeyeyeeeeee
shshshshshaaaaarrrrre held
e held
e held
is r
is r
is relelelelelaaaaatttttiviviviviveeeee
e held
e held
is r
is r
of  aof  aof  aof  aof  annnnnyyyyy
DiDiDiDiDirrrrreeeeectctctctctooooorrrrr
ooooor  Mr  Mr  Mr  Mr  Maaaaannnnnaaaaagggggeeeeerrrrr

1 Mr. Pallab
Banerjee

Group President

B.Sc. (Hons) and Post
Graduate in Apparel
Merchandising &
Marketing from NIFT

2 Mr. Pankaj
Bhasin

CEO-Sampling
& Merchandising

B.Com and Apparel
Production Management

3 Mr. Amit
Mohan

4 Mr. Manish
Sareen

Group CFO

Senior Vice
President
(Marketing &
Operations)

B.Com (Hons),
CA, CPA, ISA

MBA

5 Mr. Sundeep COO-Knits

B.A.

Chatrath

Division (India)

6 Mr. Raghav
Garg

Chief Financial
Officer

B.Com (Hons), CA

7 Mr. Praveen
Choudhary

Financial
Controller

B.Com, CA

8 Mr. Ashutosh Assistant Vice

PGDBA-HR, LLB

Sharma

President (Human
Resource)

9 Mr. Sumit
Kumar

Executive
Assistant-
Chairman

B.E. (M.E.), PGDMA,
CFA-II

10 Mr. Anand
Bhatia

Vice-President
(Production)

B.Sc., MBA

Note: Nature of employment is non contructual

52

28

01.06.2019

8,311,136 VP-Global Sourcing

NIL

No

(Wovens) - GAP, MD-
Global International
Sourcing India Pvt. Ltd.

15.07.1995

6,258,091 NIL

02.11.2015

6,136,128 CFO, Vishvaraj

Infrastructure, Nagpur

01.11.2017

4,758,504 Founder & CEO-

J&M Fashions

01.06.2017

4,566,294 Head-Merchandising,
Gupta Exim, Faridabad

21.01.2019

3,443,755 Vice Presidnet -

F&A - Trident Ltd.

21.01.2019

2,891,855 GM-Finance -

Poly Medicure Ltd.

15.03.2018

2,585,641 Head & GM-Paras

Group (Real Estate &
Education Business)

NIL

NIL

NIL

NIL

NIL

NIL

NIL

25

31

26

32

13

18

19

13

08.02.2017

2,328,955 AGM, Punj Lloyd

NIL

28

09.08.2011

2,365,643 Factory Manager,

NIL

Texport Fashion Ltd

47

54

49

53

37

41

41

38

51

No

No

No

No

No

No

No

No

No

Pearl Global Industries Limited     Annual Report 2019-20

51

Annexure-VIII to the Directors’ Report

e Dirrrrreeeeectctctctctooooorsrsrsrsrs
e Di
n of Exeeeeecucucucucutttttivivivivive Di
e Di
n of Ex
RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion of Ex
n of Ex
e Di
n of Ex

SlSlSlSlSl..... NNNNNaaaaame  ofme  ofme  ofme  ofme  of
NNNNNooooo..... EEEEEmmmmmppppplololololoyeyeyeyeyeeeeee

DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn

EdEdEdEdEducucucucucaaaaatttttioioioioionnnnnaaaaalllll
qqqqquuuuuaaaaalllllific
ificificaaaaatttttioioioioionnnnn
ificific

AgAgAgAgAgeeeee

ExExExExExpppppeeeeerrrrrieieieieiencncncncnceeeee
(((((iiiiin yea
n yea
n yea
n years)rs)rs)rs)rs)
n yea

DDDDDaaaaattttte  of
e  of
e  of
e  of
e  of
JJJJJoooooiiiiinnnnniiiiinnnnnggggg

RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioionnnnn PPPPPrrrrreeeeevvvvviouiouiouiouiousssss

pppppaaaaaididididid eeeeemmmmmppppplololololoyyyyymememememennnnnttttt

1 Mr. Pulkit
Seth

Managing Director Bachelor of Business

Management

2 Mrs. Shifalli Whole-Time

Seth

Director

Bachelor degree in
Business Administration

3 Mr. Vinod Whole-Time

B.Sc.

Vaish*

Director

40

39

62

16

15

30

11/1/2004

15,528,800 NIL

5/1/2005

6,903,800 Pearl Global Ltd.

6/8/2009

1,727,864 Director, Uttranchal

Biodiesel Ltd

Note: Nature of employment is contructual

* Mr. Vinod Vaish has resigned from the Board of the Company with effect from April 30, 2020

PPPPPeeeeerrrrrccccceeeeennnnntttttaaaaagggggeeeee WhetWhetWhetWhetWhetheheheheherrrrr
of  eof  eof  eof  eof  eqqqqquuuuuititititityyyyy
eeeeemmmmmppppplololololoyeyeyeyeyeeeeee
shshshshshaaaaarrrrre held
e held
e held
is r
is r
is relelelelelaaaaatttttiviviviviveeeee
e held
e held
is r
is r
of  aof  aof  aof  aof  annnnnyyyyy
DiDiDiDiDirrrrreeeeectctctctctooooorrrrr
ooooor  Mr  Mr  Mr  Mr  Maaaaannnnnaaaaagggggeeeeerrrrr

32.07

0.93

NIL

Yes

Yes

No

Place: Gurugram
Date: October 07, 2020

For and on behalf of the Board
for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD

(D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H)
CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN
DIN 00003021

52

Pearl Global Industries Limited     Annual Report 2019-20

Annexure IX to the Director’s Report

Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo required under
the Companies (Accounts) Rules, 2014.

AAAAA..... CCCCCOOOOONSNSNSNSNSEEEEERRRRRVVVVVAAAAATTTTTIIIIIOOOOON ON ON ON ON OF EF EF EF EF ENNNNNEEEEERRRRRGGGGGYYYYY

n of enenenenenergrgrgrgrgyyyyy:::::
n of e
(((((iiiii))))) SSSSSttttteeeeeps tps tps tps tps taaaaakkkkkeeeeen fon fon fon fon for cr cr cr cr cooooonnnnnseseseseserrrrrvvvvvaaaaatttttioioioioion of e
n of e
n of e

-

-

Installed Steam boilers in place of electrical boilers

Replaced old office electrical items like Air Conditions, fans with energy efficient ones.

- Other measures like placing focused lighting systems and reducing lights wherever not needed.

-

Effective utilization of work station for energy conservation

(((((iiiiiiiiii))))) SSSSSttttteeeeeps tps tps tps tps taaaaakkkkkeeeeen bn bn bn bn by ty ty ty ty the Co
he Co
he Co
he Commmmmpppppaaaaannnnny foy foy foy foy for ur ur ur ur utttttilililililiziziziziziiiiinnnnng ag ag ag ag alllllttttteeeeerrrrrnnnnnaaaaattttte sou
e sou
e sou
e sourrrrrccccces of e
es of e
es of e
es of enenenenenergrgrgrgrgyyyyy :::::
he Co
e sou
es of e

The Company being into garment manufacturing does not consume heavy electricity. However, the Company
has installed 200 KW capacity of solar energy plant at its factory located at Chennai.

(((((iiiiiiiiiiiiiii))))) TTTTThe Che Che Che Che Caaaaapppppitititititaaaaal il il il il innnnnvvvvvesesesesestttttmememememennnnnt ot ot ot ot on en en en en enenenenenergrgrgrgrgy cy cy cy cy cooooonnnnnvvvvveeeeersarsarsarsarsatttttioioioioion en en en en eqqqqquuuuuiiiiipppppmememememennnnnttttt:::::

The Company has invested approx ` 1.07 Crore for installation of solar energy plant.

B.B.B.B.B. TTTTTECECECECECHHHHHNNNNNOOOOOLLLLLOOOOOGGGGGY AY AY AY AY ABBBBBSSSSSOOOOORRRRRPPPPPTTTTTIIIIIOOOOON :N :N :N :N :
(((((iiiii))))) EEEEEffoffoffoffofforrrrrttttts ms ms ms ms made t
ade t
ade t
ade tooooowwwwwaaaaarrrrrds tds tds tds tds teeeeechchchchchnononononololololologgggg y abso
y abso
y abso
y absorptrptrptrptrptioioioioionnnnn:::::
ade t
y abso

Nil

(((((iiiiiiiiii))))) BBBBBeeeeenefit
nefit
nefit
s des derrrrriviviviviveeeeed ld ld ld ld likikikikike pe pe pe pe prrrrroooooddddduct i
s des de
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uct immmmmppppprrrrrovovovovoveeeeemememememennnnnt, ct, ct, ct, ct, cososososost rt rt rt rt reeeeeddddductuctuctuctuctioioioioion, pn, pn, pn, pn, prrrrroooooddddduct de
uct de
uct de
uct devvvvveloeloeloeloelopppppmememememennnnnt ot ot ot ot or ir ir ir ir immmmmpppppooooorrrrrt st st st st subsubsubsubsubstttttititititituuuuutttttioioioioionnnnn:::::
nefits de
nefit
uct i
uct de

Not Applicable

(((((iiiiiiiiiiiiiii))))) IIIIIn cn cn cn cn caaaaase of i
se of i
se of i
se of immmmmpppppooooorrrrrttttteeeeed td td td td teeeeechchchchchnononononololololologgggg y (y (y (y (y (iiiiimmmmmpppppooooorrrrrttttteeeeed dd dd dd dd duuuuurrrrriiiiinnnnng tg tg tg tg the lhe lhe lhe lhe laaaaassssst tt tt tt tt thhhhhrrrrreeeeee yea
e yea
e yea
e years rrs rrs rrs rrs reeeeeckckckckckooooonenenenened frd frd frd frd frooooom tm tm tm tm the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of t
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fififififinnnnnaaaaancianciancianciancial yea
l yea
l yea
l year):r):r):r):r):
l yea
a Technology Imported
b Year of Import
C Has technology been fully absorbed?
d

If not fully absorbed, areas where this has not taken place, and the reasons.

ch & Deeeeevvvvveloeloeloeloelopppppmememememennnnnttttt:::::
ch & D
esearrrrrch & D
ch & D
esea
he expppppeeeeendndndndndititititituuuuurrrrre ie ie ie ie incuncuncuncuncurrrrrrrrrreeeeed od od od od on Rn Rn Rn Rn Resea
esea
he ex
(((((iv)iv)iv)iv)iv) TTTTThe ex
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ch & D
esea
he ex
ExExExExExpppppeeeeendndndndndititititituuuuurrrrre oe oe oe oe on R & D
n R & D
n R & D
n R & D
n R & D

a) Capital

b) Recurring

TTTTTotototototaaaaalllll

C.C.C.C.C. FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Ee Ee Ee Ee Eaaaaarrrrrnnnnniiiiinnnnngggggs as as as as and Ond Ond Ond Ond Ouuuuutgtgtgtgtgooooo

FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Ee Ee Ee Ee Eaaaaarrrrrnnnnniiiiinnnnngggggsssss

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Export of Goods - FOB basis

Interest Income

IT/SAP Income

TTTTTotototototaaaaalllll

: Not Applicable
: N.A.
N.A.
N.A.

2019-20
2019-20
2019-20
2019-20
2019-20

NIL

783.95

783.95
783.95
783.95
783.95
783.95

2019-20
2019-20
2019-20
2019-20
2019-20

74,130.24

30.11

98.11

(`/Lakh)

2018-19
2018-19
2018-19
2018-19
2018-19

NIL

596.89

596.89
596.89
596.89
596.89
596.89

(`/Lakh)

2018-19
2018-19
2018-19
2018-19
2018-19

77,985.01

29.68

81.68

74,258.46
74,258.46
74,258.46
74,258.46
74,258.46

78,096.37
78,096.37
78,096.37
78,096.37
78,096.37

Pearl Global Industries Limited     Annual Report 2019-20

53

Annexure IX to the Director’s Report

FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Oe Oe Oe Oe Ouuuuutgtgtgtgtgooooo

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Imports

Foreign Travelling

EDI Expenses

Others

TTTTTotototototaaaaalllll

Place: Gurugram
Date: October 07, 2020

2019-20
2019-20
2019-20
2019-20
2019-20

12,730.23

68.73

63.07

59.41

(`/Lakh)

2018-19
2018-19
2018-19
2018-19
2018-19

2,889.52

69.47

37.09

85.18

12,921.44
12,921.44
12,921.44
12,921.44
12,921.44

3,081.26
3,081.26
3,081.26
3,081.26
3,081.26

for and on behalf of the Board
for PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD

(D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H)
CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN
DIN 00003021

54

Pearl Global Industries Limited     Annual Report 2019-20

Statement containing salient features
of the financial statement of subsidiary companies
[ Pursuant to first proviso to Sub-Section (3) of Section 129 of the Companies Act, 2013, read with Rule 5 of the
Companies (Accounts) Rules, 2014-AOC-1]

(((((````` i i i i in Lan Lan Lan Lan Lakkkkkhhhhh)))))

ubsidiaiaiaiaiarrrrryyyyy
ubsid
ubsid
me  of  S
me  of  S
Sl.Sl.Sl.Sl.Sl. NNNNNaaaaame  of  S
me  of  Subsid
ubsid
me  of  S
 N N N N Nooooo.....

e  of RRRRReeeeepppppooooorrrrrtttttiiiiinnnnnggggg RRRRReeeeepppppooooorrrrrtttttiiiiinnnnnggggg ExExExExExchchchchchaaaaannnnngggggeeeee
e  of
e  of
DDDDDaaaaattttte  of
e  of
rrrrraaaaattttteeeee
isitioioioioionnnnn
isit
isit
AAAAAcccccqqqqquuuuuisit
isit

CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy

PPPPPeeeeerrrrrioioioioioddddd

RRRRReseeseeseeseeserrrrrvvvvveseseseses
EqEqEqEqEquuuuuititititityyyyy
ShShShShShaaaaarrrrreeeee &  s&  s&  s&  s&  suuuuurprprprprpllllluuuuusssss

TTTTTotototototaaaaalllll
TTTTTotototototaaaaalllll
aaaaassssssetsetsetsetsetsssss LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies

IIIIInnnnnvvvvvesesesesestttttmememememennnnntttttsssss TTTTTuuuuurrrrrnovnovnovnovnoveeeeerrrrr

CCCCCaaaaapppppitititititaaaaalllll

ofit/ PPPPPrrrrrovovovovovisioisioisioisioisionnnnn
ofit/
ofit/
PPPPPrrrrrofit/
ofit/
for
forfor
LLLLLososososossssss
for
for
tttttaaaaaxaxaxaxaxatttttioioioioionnnnn
bbbbbefoefoefoefoeforrrrreeeee
tttttaaaaaxaxaxaxaxatttttioioioioionnnnn

% of% of% of% of% of
dddddivivivivivideideideideidendndndndnd shshshshshaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnnggggg

ofit  / PPPPPrrrrroooooppppposeoseoseoseoseddddd
ofit  /
ofit  /
PPPPPrrrrrofit  /
ofit  /
LLLLLososososossssss
afafafafafttttteeeeerrrrr
tttttaaaaaxaxaxaxaxatttttioioioioionnnnn

OOOOOtttttheheheheherrrrr

TTTTTotototototaaaaalllll
cccccooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee
iiiiincncncncncooooome  fome  fome  fome  fome  forrrrr
ttttthe Yhe Yhe Yhe Yhe Yeaeaeaeaearrrrr

ses)
ses)
(Ex(Ex(Ex(Ex(Expppppeeeeennnnnses)
ses)
ses)
 I I I I Incncncncncooooomememememe

1

2

3

Pearl Apparel
Fashions Limited

Pearl Global Kaushal
Vikas Limited

SBUYS E-Commerce
Limited

3/30/2007

31-Mar-20

6/18/2014

31-Mar-20

9/20/2019

31-Mar-20

INR

INR

INR

NA 2763.91

-2760.00

304.20

300.29

0.00

14.96

-18.77

4.96

-23.73

NA

NA

5.00

1.00

-4.25

-0.24

1.83

1.00

1.08

0.24

0.00

0.00

0.00

-0.57

0.00

-0.57

0.00

-0.24

0.00

-0.24

4 Norp Knit Industries

3/22/2006

31-Mar-20

USD

75.39

3631.18

10503.53

31553.86

17419.15

1009.73

58812.90

1545.87

301.33

1244.54

Limited

Pearl Global Fareast
Limited

Peal Global (HK)
Limited

PGIC Investment
Limited

Pearl Grass Creations
Limited

5

6

7

8

9 Vin Pearl Global
Vietnam Limited

3/16/2009

31-Mar-20

USD

75.39

3268.16

3932.54

11258.95

4058.25

0.00

22716.24

575.91

0.00

575.91

12/22/2009

31-Mar-20

USD

75.39

6830.33

4511.89

47349.62

36007.39

14976.15

94844.99

599.19

71.27

527.92

16.08.2016

31-Mar-20

USD

75.39

0.0

-271.15

4322.99

4594.14

0.00

0.45

-226.90

0.00

-226.90

11.07.2016

31-Mar-20

USD

75.39

301.56

-1480.81

2580.16

3759.42

0.00

3453.47

-157.44

0.00

-157.44

11.07.2016

31-Mar-20

USD

75.39

9.05

-1506.02

7985.18

9482.15

3109.31

12213.96

18.64

0.00

18.64

10 Pearl Global Vietnam

01.05.2017

31-Mar-20

VND

0.00

2294.65

-1884.91

6477.78

6068.04

0.00

11999.70

25.62

0.00

25.62

Co. Limited

11 Prudent Fashions

02.03.2017

31-Mar-20

BDT

0.87

383.60

-124.04

3185.03

2925.47

0.00

0.00

-88.57

0.07

-88.64

Limited

12 DSSP Global Limited

11/8/2012

31-Mar-20

13 PT Pinnacle Apparels

3/30/2006

31-Mar-20

USD

USD

75.39

75.39

1134.71

1133.84

4662.00

12099.32

4368.93

9336.31

6302.61

3833.55

791.58

25496.29

0.00

18612.19

135.19

237.17

71.20

71.20

63.99

165.97

NNNNNotototototeeeee:::::

-

-

-

-

-

-

-

-

-

-

-

-

-

100

100

100

99.99

100

100

100

80

100

100

99.95

100

69.91

-

-

-

-

-

(23.73)

(0.57)

(0.24)

1,244.54

575.91

42.36

570.28

-

-

(11.66)

-

-

69.84

69.84

(226.90)

(157.44)

6.98

25.62

(88.64)

133.83

235.80

In addition to above the Company has invested in 3000000 Preference Shares of ` 10/- each aggregating ` 3,00,00,000/-
of Pearl Apparel Fashions Limited

For and on behalf of Board
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd
l Glo
for P P P P Peaeaeaeaearrrrrl Glo
l Glo
l Glo

(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
Managing Director
DIN 00003044

r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r)
r Si
(Ka(Kashshshshshmmmmmiiiiir Si
r Si
(Ka(Ka
(Ka
r Si
Chief Financial Officer

(D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh)))))
Chairman
DIN 00003021

(S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll)))))
Company Secretary
M. No. ACS - 8370

Place: Gurugram
Date: July 28, 2020

Pearl Global Industries Limited     Annual Report 2019-20

55

Corporate Governance

1.1.1.1.1. CCCCCOOOOOMMMMMPPPPPAAAAANNNNNYYYYY ’’’’’S PS PS PS PS PHHHHHIIIIILLLLLOOOOOSSSSSOOOOOPPPPPHHHHHYYYYY

Corporate  Governance  is  based  on  the  principles  of  integrity,  fairness,  equity,  transparency,  accountability  and
commitment to Values, good governance practices stem from culture and mindset of the organization.

The Company has an unwavering commitment to uphold sound corporate governance standards and highest business
conduct. Being a value driven organization, Pearl Global Industries Limited has always worked towards building trust
with stakeholders based on the principles of corporate governance.

Pearl Global Industries Limited strives to foster a corporate culture in which high standard of ethical behavior, individual
accountability and transparent disclosure are ingrained in all its business dealing and shared by its Board of Directors,
Management and employees. Over the years governance process and systems have been strengthened at Pearl Global
Industries. In addition to complying with the statutory requirements, effective governance system and practices towards
improving transparency, disclosures, internal controls and promotion of ethics at work place.

Over the years governance processes and systems have been strengthened at Pearl Global Industries Limited.

Your Company is committed to best Corporate Governance and has fully complied with the requirements of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). The Company in its
endeavor towards the best Corporate Governance and to provide transparency initiated various measures.

This report along with the chapters on Management Discussion and Analysis reports company’s compliance with
SEBI Listing Regulations.

2.2.2.2.2. BBBBBOOOOOAAAAARRRRRD OD OD OD OD OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS

As on 31st March 2020, the Company’s Board of Directors consists of 9 (Nine) members. The Chairman of the Board
is non-executive Promoter Director. The Board comprises of three executive Directors of whom one women Director
and six non-executive Directors, of whom five are Independent Directors including one women Independent Director.
The composition of the Board is in conformity with the requirement of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. All non-executive independent Directors are persons of eminence and bring a wide
range of expertise and experience to the Board.

CoCoCoCoCommmmmpppppositositositositositioioioioion  an  an  an  an  and  Cnd  Cnd  Cnd  Cnd  Caaaaattttteeeeegggggooooorrrrry  of  t
n  31.03.2020  and  tnd  tnd  tnd  tnd  theiheiheiheiheir  ar  ar  ar  ar  atttttttttteeeeendndndndndaaaaancncncncnce  ie  ie  ie  ie  in  tn  tn  tn  tn  the  Bhe  Bhe  Bhe  Bhe  Boooooaaaaarrrrrd  ad  ad  ad  ad  and  And  And  And  And  Annnnnnnnnnuuuuuaaaaalllll
n  31.03.2020  a
y  of  the  Bhe  Bhe  Bhe  Bhe  Boooooaaaaarrrrrd  ad  ad  ad  ad  as  os  os  os  os  on  31.03.2020  a
n  31.03.2020  a
y  of  t
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n  31.03.2020  a
s herrrrreueueueueundendendendenderrrrr:::::
s he
GGGGGeeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnngggggs as as as as arrrrre ae ae ae ae as he
s he
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me of Dirrrrreeeeectctctctctooooorrrrr
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DiDiDiDiDirrrrreeeeectctctctctooooorrrrr----- MMMMMeeeeembmbmbmbmbeeeeerrrrr CCCCChhhhhaaaaaiiiiirrrrrmmmmmaaaaannnnn BBBBBoooooaaaaarrrrrddddd AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaalllll

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CCCCCaaaaattttteeeeegggggooooorrrrryyyyy

shshshshshiiiiips*ps*ps*ps*ps*

MMMMMeeeeeetetetetetiiiiinnnnngggggsssss

MMMMMeeeeeetetetetetiiiiinnnnnggggg

1 Mr. Deepak Seth

Promoter, Non-Executive

2 Mr. Pulkit Seth

Promoter, Executive

3 Mrs. Shifalli Seth

Promoter, Executive

4 Mr. Vinod Vaish

Executive

5 Mr. Chittranjan Dua

Independent, Non-executive

6 Mr. Rajendra Kumar

Aneja

Independent
Non-executive

7 Mr. Anil Nayar

Independent, Non-executive

8 Mr. Abhishek Goyal

Independent, Non-executive

9 Mrs. Madhulika
Bhupatkar

Independent, Non-executive

3

2

2

1

5

-

-

2

-

1

2

—

3

4

3

4

2

-

—

—

—

1

1

—

2

1

-

2

2

1

4

2

1

4

4

-

Yes

Yes

No

No

Yes

No

Yes

Yes

Not Applicable

*Foreign Companies, Bodies Corporate, Private Companies and Companies under Section 8 of the Companies Act, 2013
are excluded for the above purpose.

56

Pearl Global Industries Limited     Annual Report 2019-20

Corporate Governance (contd...)

y of Dirrrrreeeeectctctctctooooorshrshrshrshrshiiiiippppp:::::
y of Di
y is Dirrrrreeeeectctctctctooooors ars ars ars ars and cnd cnd cnd cnd caaaaattttteeeeegggggooooorrrrry of Di
y of Di
y is Di
he Commmmmpppppaaaaannnnny is Di
y is Di
he Co
he Co
rs of t
e Dirrrrreeeeectctctctctooooors of t
rs of t
e Di
me of otheheheheher lr lr lr lr lisisisisisttttteeeeed ed ed ed ed ennnnntttttititititities wies wies wies wies wheheheheherrrrre Di
e Di
me of ot
NNNNNaaaaame of ot
me of ot
rs of the Co
y of Di
y is Di
he Co
rs of t
e Di
me of ot

DDDDDIIIIINNNNN

y of Dirrrrreeeeectctctctctooooorshrshrshrshrshiiiiippppp
y of Di
ich thehehehehe CCCCCaaaaattttteeeeegggggooooorrrrry of Di
y of Di
ich t
ies in wn wn wn wn whhhhhich t
ich t
ies i
me of lisisisisisttttteeeeed ed ed ed ed ennnnntttttititititities i
ies i
me of l
NNNNNaaaaame of l
me of l
y of Di
ich t
ies i
me of l
r is a Dirrrrreeeeectctctctctooooorrrrr
r is a Di
d Dirrrrreeeeectctctctctooooor is a Di
r is a Di
d Di
cccccoooooncncncncnceeeeerrrrrnenenenened Di
d Di
r is a Di
d Di
00003021 PDS Multinational Fashions Limited

me of Dirrrrreeeeectctctctctooooorrrrr
me of Di
NNNNNaaaaame of Di
me of Di
me of Di

Mr. Deepak Seth

Mr. Pulkit Seth
Mrs. Shifalli Seth
Mr. Vinod Vaish
Mr. Chittranjan Dua

00003044 NIL
01388430 NIL
01945795 NIL
00036080 TVS Motor Company Limited

Gillette India Limited

Promoter, Non-Executive
Director
NIL
NIL
NIL
Independent Non-Executive
Director
Independent Non-Executive
Director
NIL
NIL
NIL
NIL

Mr. Rajendra Kumar Aneja 00731956 NIL
01390190 NIL
Mr. Anil Nayar
Mr. Abhishek Goyal
01928855 NIL
Mrs. Madhulika Bhupatkar 08712718 NIL

Mr. Deepak Seth, Chairman, Mr. Pulkit Seth, Vice Chairman & Managing Director and Mrs. Shifalli Seth, Whole-
Time Director are relatives. Mrs. Shifalli Seth is wife of Mr. Pulkit Seth, Mr. Pulkit Seth is Son of Mr. Deepak Seth.

The Board of Directors has through circular resolution dated March 18, 2020, appointed Mrs. Madhulika Bhupatkar
as Women Independent Director of the Company in compliance with the proviso of Regulation 17(1)(a) of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015.

There is no Nominee or Institutional Directors on the Board of the Company.

During  the  financial  year  2019-20,  four  (4)  Board  Meetings  were  held  on  28th  May  2019,  13th  August  2019,
14th November 2019, and 13th February, 2020.

Mr. Deepak Seth, Chairman holds 28,62,145 equity shares (13.21%), Mr. Pulkit Seth, Vice Chairman & Managing
Director holds 69,47,621 equity shares (32.07%) and Mrs. Shifalli Seth, Whole Time Director holds 2,01,478 equity
shares (0.93%) of the Company. No other Director holds any equity share in the Company.

Details of familiarisation programmes imparted to Independent Directors are disclosed at Company’s website at http:/
/www.pearlglobal.com/investors/policy

d of Dirrrrreeeeectctctctctooooorsrsrsrsrs
d of Di
e of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrd of Di
d of Di
e of t
ise/Commmmmpppppeteteteteteeeeencncncncnce of t
e of t
ise/Co
ls/Expppppeeeeerrrrrtttttise/Co
ise/Co
ls/Ex
SkSkSkSkSkililililills/Ex
ls/Ex
d of Di
e of t
ise/Co
ls/Ex

The Board comprises qualified members who bring the required skill, competence and expertise that allow them to
make effective contribution to the Board.

The following is the list of core skills/expertise/competencies identified by the Board of Directors as required in the
context of the business of the Company for it to function effectively and those actually available the Board:

SkSkSkSkSkililililill al al al al arrrrreaeaeaeaea

DDDDDescescescescescrrrrriiiiiptptptptptioioioioionnnnn

Product design,
Manufacturing, Sales
and Marketing
Finance

• Experience in design and manufacturing of products and
developing strategies to increase sales and market share.

• Qualification and experience in accounting and finance

6

and ability to understand key financial statements, strategic
financial planning and budgets.

NNNNNuuuuumbmbmbmbmbeeeeer of Di
r of Dirrrrreeeeectctctctctooooorsrsrsrsrs
r of Di
r of Di
r of Di
hhhhhaaaaavvvvviiiiinnnnng pg pg pg pg paaaaarrrrrttttticuicuicuicuiculllllaaaaar skr skr skr skr skililililillslslslsls
3

Pearl Global Industries Limited     Annual Report 2019-20

57

Corporate Governance (contd...)

SkSkSkSkSkililililill al al al al arrrrreaeaeaeaea

DDDDDescescescescescrrrrriiiiiptptptptptioioioioionnnnn

NNNNNuuuuumbmbmbmbmbeeeeer of Di
r of Dirrrrreeeeectctctctctooooorsrsrsrsrs
r of Di
r of Di
r of Di
hhhhhaaaaavvvvviiiiinnnnng pg pg pg pg paaaaarrrrrttttticuicuicuicuiculllllaaaaar skr skr skr skr skililililillslslslsls

Global Business

Leadership and
Strategic Planning

Technology and
Innovation
Legal and
Governance

• Experience in driving business in markets around the world.
• Understanding of diverse business environments, economic

conditions, cultures and regulatory frameworks.

• Ability to understand organization, processes, strategic

planning and risk management.

• Experience in developing talent, succession planning and

driving change and long term growth.

• Knowledge of technological trends in apparel industry.

• Ability to protect shareholders’ interest and observe

appropriate governance practices.

• Monitor risk and compliance management system

including legal framework.
Human Resource and • Ability to understand Labour Laws and other related
Administration

applicable Laws including administration functions
of the Company.

The Board members possess the skills identified; their area of core expertise is given below:

3

5

3

5
4

NNNNNaaaaame of Di
me of Di
me of Di
me of Dirrrrreeeeectctctctctooooorrrrr
me of Di
Mr. Deepak Seth

Mr. Pulkit Seth

Mrs. Shifalli Seth

Mr. Vinod Vaish

Mr. Anil Nayar

AAAAArrrrrea of Ex
ea of Ex
ea of Ex
ea of Expppppeeeeerrrrrtttttiseiseiseiseise
ea of Ex
Product design, Manufacturing, Sales and Marketing
Global Business
Leadership and Strategic Planning
Finance
Legal and Governance
Technology and Innovation
Product design, Manufacturing, Sales and Marketing
Global Business
Leadership and Strategic Planning
Finance
Technology and Innovation
Product design, Manufacturing, Sales and Marketing
Global Business
Technology and Innovation
Human Resource and Administration
Legal and Governance
Finance
Finance
Leadership and Strategic Planning
Legal and Governance
Human Resource and Administration

58

Pearl Global Industries Limited     Annual Report 2019-20

Corporate Governance (contd...)

NNNNNaaaaame of Di
me of Dirrrrreeeeectctctctctooooorrrrr
me of Di
me of Di
me of Di
Mr. Chittranjan Dua

AAAAArrrrrea of Ex
ea of Expppppeeeeerrrrrtttttiseiseiseiseise
ea of Ex
ea of Ex
ea of Ex
Finance
Leadership and Strategic Planning
Legal and Governance
Finance
Legal and Governance
Human Resource and Administration
Mrs. Madhulika Bhupatkar Human Resource and Administration

Mr. Abhishek Goyal

Leadership and Strategic Planning

Mr. Vinod Vaish has tendered his resignation from the Board of the Company with effect from April 30, 2020, due to
personal reasons.

In the opinion of the Board, all Independent Directors fulfill the conditions specified in the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and are independent of the management.

During the year, no Independent Director has resigned before the expiry of his tenure.

IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioion sn sn sn sn suuuuupppppppppplllllieieieieied td td td td to to to to to the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd

The Board has complete access to all information with the company. Inter alia, the following information are provided
to the Board and the agenda papers for the meetings are circulated in advance of each meeting or are tabled.

• Annual Operating plans and budgets, Capital budgets, updates;

• Quarterly results for the company and its operating divisions or business segments;

• Minutes of meetings of Audit Committee and other committees of the board;

•

Information on recruitment and remuneration of senior officers just below the board level including appointment
or removal of Chief Financial Officer and Company Secretary;

• Materially important show cause, demand, prosecution and penalty notices;

•

Fatal or serious accidents or dangerous occurrences;

• Any materially significant effluent or pollution problems;

• Any materially relevant default in financial obligations to and by the Company, or substantial non-payment for

goods sold by the Company;

• Any issue, which involves possible public or product liability claims of a substantial nature;

• Details of any joint venture or collaboration agreement;

• Transactions that involve substantial payment towards goodwill, brand equity or intellectual property;

•

Significant labour problems and their proposed solutions;

• Any significant development in the human resources and industrial relations fronts;

•

Sale of material nature, of investments, subsidiaries, assets, which is not in the normal course of business;

• Quarterly details of foreign exchange exposure and the steps taken by management to limit the risks of adverse

exchange rate movement, and

• Non-compliance of any regulatory, statutory nature or listing requirements and shareholder services such as non-

payment of dividend and/or delay in share transfer.

Pearl Global Industries Limited     Annual Report 2019-20

59

Corporate Governance (contd...)

3.3.3.3.3. AAAAAUUUUUDDDDDIIIIIT CT CT CT CT COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE

The Audit Committee has been constituted as per Section 177 of the Companies Act, 2013 and the guidelines set out
in Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The terms of reference
includes:-

• Overseeing financial reporting processes.

•

Reviewing periodic financial results, financial statements and adequacy of internal control systems.

• Discussion and review of periodic audit reports and

• Discussions with external auditors about the scope of audit including the observations of the auditors.

•

Recommending the appointment, remuneration and removal of statutory auditors.

• Discussing with internal auditors any significant findings and follow up there on.

•

•

•

•

•

•

Reviewing the adequacy of internal control systems with management, external and internal auditors and reviewing
the Company’s risk management policies / systems.

Reviewing the financial statements and quarterly financial results.

Reviewing Management discussion and analysis of financial condition and result of operations.

Reviewing statement of significant related party transactions.

Review and monitor the auditor’s independence and performance, and effectiveness of audit process.

Scrutiny of inter-corporate loans and investments.

All the members of Audit Committee are Non-Executive Directors except Mr. Vinod Vaish and the Chairman of the
Committee is Non-Executive Independent Director. All the members of the committee possess financial/accounting
expertise.

Mr. Sandeep Sabharwal, Company Secretary acts as Secretary of the Audit Committee.

During the year, the Audit Committee, met four times and discharged its responsibilities in accordance with Section
177 of the Companies Act, 2013 and SEBI Listing Regulations. The meetings of the Audit Committee were held on
28th May 2019, 13th August 2019, 14th November 2019 and 13th February 2020 during the financial year 2019-20.
The maximum gap between any two meetings was less than one hundred twenty days.

During the year 2019-20, the members of the Audit Committee and their attendance are as under:

it Commmmmmmmmmitititititttttteeeeeeeeee
it Co
AAAAAudududududit Co
it Co
it Co

Composition

Mr. Anil Nayar
Mr. Vinod Vaish
Mr. Abhishek Goyal
Mr. Rajendra K Aneja

– Chairman
– Member Director
– Member Director
– Member Director

No. of Meetings attended
4
4
4
1

4.4.4.4.4. NNNNNOOOOOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND RD RD RD RD REEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON CN CN CN CN COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE

Terms of Reference of the Nomination and Remuneration Committee include:

• To guide the Board in relation to appointment and removal of Directors, Key Managerial Personnel and Senior

Management.

• To evaluate the performance of the members of the Board and provide necessary report to the Board for further

evaluation of the Board.

60

Pearl Global Industries Limited     Annual Report 2019-20

Corporate Governance (contd...)

• To recommend to the Board on Remuneration payable to the Directors, Key Managerial Personnel and Senior

Management.

• To  provide  to  Key  Managerial  Personnel  and  Senior  Management  reward  linked  directly  to  their  effort,

performance, dedication and achievement relating to the Company’s operations.

• To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and

create competitive advantage.

• To devise a policy on Board diversity

• To develop a succession plan for the Board and to regularly review the plan;

All the members of the Nomination and Remuneration Committee are Non Executive Directors.

Three meetings of the Nomination and Remuneration Committee were held on 28th May, 2019, and 13th February,
2020,  during  the  financial  year  2019-20.  Details  of  meeting  of  the  members  of  Nomination  and  Remuneration
Committee and their attendance are as under:

n Con Commmmmmmmmmitititititttttteeeeeeeeee
n Con Co
NNNNNooooommmmmiiiiinnnnnaaaaatttttioioioioion an an an an and Rnd Rnd Rnd Rnd Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion Co

Composition

Mr. Abhishek Goyal
Mr. Deepak Seth
Mr. Anil Nayar
Mr. Rajendra Kumar Aneja

- Chairman
- Member Director
- Member Director
- Member Director

No. of Meetings attended
2
1
2
1

The Nomination and Remuneration Committee has laid down the criteria for evaluation of performance of Independent
Directors and the Board.

• Attendance and contribution at Board and Committee meetings

• Knowledge on specific matters like finance, legal, marketing, internal controls, risk management, and business

operations.

•

Pro-active and positive approach with regard to Board and Senior Management particularly the arrangement for
management of risk and the steps needed to meet challenges from the competition.

• Openness to ideas, perspectives and opinions and ability to challenge old practices and throwing up new ideas for

discussion.

• Capacity to effectively examine financial and other information on operations of the Company and the ability to

make positive contribution thereon.

5.5.5.5.5. RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON ON ON ON ON OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS

Details of remuneration paid to all the Directors for the year 2019-20 are as under:

(Amount in `)

me of th eh eh eh eh e
NNNNNaaaaame of t
me of t
me of t
me of t
r(s)
r(s)
D iD iD iD iD irrrrreeeeectctctctctooooor(s)
r(s)
r(s)

Designation

MMMMMrrrrr.....
DDDDDeeeeeeeeeepppppaaaaakkkkk
SSSSSetetetetethhhhh
Chairman

Salary
Benefits
HRA
SPECIAL Allowance

—
—
—
—

MMMMMrrrrr.....
PPPPPuuuuulllllkkkkkititititit
SSSSSetetetetethhhhh
Managing
Director

1,55,00,000
—
—
—

MMMMMrrrrr.....
AAAAAnnnnnililililil
NNNNNaaaaayyyyyaaaaarrrrr
Director

MMMMMrrrrr.....
C RC RC RC RC R
DDDDDuuuuuaaaaa
Director

MMMMMrrrrr.....
RRRRRajajajajajeeeeendrndrndrndrndraaaaa
K  AK  AK  AK  AK  Anejanejanejanejaneja
Director

MMMMMrrrrr.....

MMMMMrrrrr.....
ishek MMMMMadadadadadhhhhhuuuuulllllikaikaikaikaika
AAAAAbbbbbhhhhhishek
ishek
ishek
ishek
GGGGGoooooyyyyyaaaaalllll
BBBBBhhhhhuuuuupppppaaaaatttttkakakakakarrrrr
Director

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

MMMMMrrrrr.....
S hS hS hS hS hifififififaaaaalllllllllliiiii
SSSSSetetetetethhhhh
Whole
Time
Director

68,75,000
—
—
—

MMMMMrrrrr.....
VVVVV iiiiin on on on on oddddd
VVVVVaaaaaishishishishish
Whole
Time
Director

8,06,680
—
4,03,281
4,45,205

Pearl Global Industries Limited     Annual Report 2019-20

61

Corporate Governance (contd...)

NNNNNaaaaame of t
me of t
me of t
me of th eh eh eh eh e
me of t
D iD iD iD iD irrrrreeeeectctctctctooooor(s)
r(s)
r(s)
r(s)
r(s)

Medical
Bonus

Commission
Pension
Provident Fund
Perquisites

Break up of fixed
components and
Performance linked
incentives with
performance criteria
Performance Incentive
Service Contract
Notice Period,
Severance fees

Stock Options details
(if any): Whether issued
at discount. Period over
which it is accrued and is
exercisable
Sitting Fees
TTTTTotototototaaaaalllll

MMMMMrrrrr.....
DDDDDeeeeeeeeeepppppaaaaakkkkk
SSSSSetetetetethhhhh
—
—

—
—
—
—

—

—
—
Nil

Nil

MMMMMrrrrr.....
PPPPPuuuuulllllkkkkkititititit
SSSSSetetetetethhhhh
—
—

—
—
19,800
28,800

—

—
3 years
Nil

Nil

MMMMMrrrrr.....
AAAAAnnnnnililililil
NNNNNaaaaayyyyyaaaaarrrrr
—
—

—
—
—
—

—

—
—
Nil

Nil

MMMMMrrrrr.....
C RC RC RC RC R
DDDDDuuuuuaaaaa
—
—

—
—
—
—

—

—
—
Nil

Nil

MMMMMrrrrr.....
RRRRRajajajajajeeeeendrndrndrndrndraaaaa
K  AK  AK  AK  AK  Anejanejanejanejaneja
—
—

MMMMMrrrrr.....

MMMMMrrrrr.....
AAAAAbbbbbhhhhhishek
ishek
ishek
ishek MMMMMadadadadadhhhhhuuuuulllllikaikaikaikaika
ishek
GGGGGoooooyyyyyaaaaalllll
BBBBBhhhhhuuuuupppppaaaaatttttkakakakakarrrrr
—
—
—
—

—
—
—
—

—

—
—
Nil

Nil

—
—
—
—

—

—
—
Nil

Nil

—
—
—
—

—

—
—
Nil

Nil

MMMMMrrrrr.....
S hS hS hS hS hifififififaaaaalllllllllliiiii
SSSSSetetetetethhhhh
—
—

—
—
19,800
28,800

—

—
3 years
Nil

Nil

MMMMMrrrrr.....
VVVVV iiiiin on on on on oddddd
VVVVVaaaaaishishishishish
—
29,156

 —
 —
 21,600
43,542

—

—
—
Nil

Nil

20,000
20,000
20,000
20,000
20,000
20,000

—
1,55,48,600
1,55,48,600
1,55,48,600
1,55,48,600
1,55,48,600

50,000
50,000
50,000
50,000
50,000
50,000

30,000
30,000
30,000
30,000
30,000
30,000

10,000
10,000
10,000
10,000
10,000
10,000

50,000
50,000
50,000
50,000
50,000
50,000

—
—————

—
—
17,49,464
17,49,464
69,23,600
69,23,600
17,49,464
69,23,600 17,49,464
17,49,464
69,23,600
69,23,600

A sitting fee of ` 10,000/- is payable to Independent Directors for attending meeting of Independent Directors. Besides
above, the Company does not pay any other commission or remuneration to its Directors and there is no performance
linked incentives except the fixed component as stated above.

The Company has no policy of stock option, pension or severance fee for its Directors. Notice period of executive
directors are as per Company policy, i.e. 3 months. The Company does not have any separate service contract with
executive directors apart from Resolution of Board/shareholders.

6.6.6.6.6.

SSSSSTTTTTAAAAAKKKKKEEEEEHHHHHOOOOOLLLLLDDDDDEEEEER RR RR RR RR REEEEELLLLLAAAAATTTTTIIIIIOOOOONSNSNSNSNSHHHHHIIIIIP CP CP CP CP COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE
As on 31st March, 2020,

The Stakeholder Relationship Committee comprises of:

Mr. Anil Nayar

Mr. Pulkit Seth

Mr. Vinod Vaish

- Chairman

- Member

- Member

Mr. Rajendra K Aneja

- Member

The Chairman of the Committee is Non- Executive Independent Director.

Mr. Sandeep Sabharwal, Company Secretary is Compliance Officer of the Company.

The Secretary of the Company acts as Secretary of the Committee.
The  meetings  of  the  Stakeholder  Relationship  Committee  were  held  on  24th  April,  2019,  6th  November,  2019,
10th January, 2020 and 6th March, 2020, during the financial year 2019-20.

62

Pearl Global Industries Limited     Annual Report 2019-20

Corporate Governance (contd...)

r 2019-20
r 2019-20
he yea
rs Commmmmppppplllllaaaaaiiiiinnnnnttttts ds ds ds ds duuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
rs Co
s of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders Co
rs Co
s of Sh
SSSSStttttaaaaatttttuuuuus of Sh
s of Sh
r 2019-20
he year 2019-20
r 2019-20
he yea
rs Co
s of Sh

Complaints at the
beginning of the year.
Nil

Complaints received
during the year.
3

Complaints settled
during the year.
3

Complaints pending at
the ending of the year
Nil

7.7.7.7.7. CCCCCOOOOORRRRRPPPPPOOOOORRRRRAAAAATTTTTE SE SE SE SE SOOOOOCCCCCIIIIIAAAAAL RL RL RL RL REEEEEPPPPPOOOOOSSSSSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY CY CY CY CY COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE

As on 31st March, 2020,

The Corporate Social Responsibility Committee comprises of:

Mr. Vinod Vaish

- Chairman

Mr. Pulkit Seth

Mr. Anil Nayar

- Member

- Member

The Chairman of the Committee is Executive Director.

The Secretary of the Company acts as Secretary of the Committee.
One meeting held on 28th May, 2019, during the financial year 2019-20.

8.8.8.8.8. FIFIFIFIFINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE
As on 31st March, 2020,

The Finance Committee comprises of:

Mr. Pulkit Seth

- Chairman

Mrs. Shifalli Seth

Mr. Vinod Vaish

- Member

- Member

The Chairman of the Committee is Executive Director.

The Secretary of the Company acts as Secretary of the Committee.

The meetings of Finance Committee were held on 30.04.2019, 20.05.2019, 08.07.2019, 03.08.2019, 16.09.2019,
24.10.2019, 14.11.2019, 06.12.2019, 18.12.2019, 17.01.2020, 11.02.2020 and 26.02.2020, during the financial year
2019-20.

9.9.9.9.9. GGGGGEEEEENNNNNEEEEERRRRRAAAAAL BL BL BL BL BOOOOODDDDDY MY MY MY MY MEEEEEEEEEETTTTTIIIIINNNNNGGGGGSSSSS

Location and time where last 3 Annual General Meetings were held:

YYYYYeaeaeaeaearrrrr
2016-17

AAAAAGGGGGMMMMM LLLLLooooocccccaaaaatttttioioioioionnnnn
28th

2017-18

29th

2018-19

30th

Sri Sathya Sai International Centre, Pragati Vihar
(Near Pragati Vihar Hostel) Lodhi Road, New Delhi-110 003
Air Force Auditorium, Near R&R HospitalSubroto Park,
New Delhi-110 010
Sri Sathya Sai International Centre, Pragati Vihar
(Near Pragati Vihar Hostel) Lodhi Road, New Delhi-110 003

DDDDDaaaaattttteeeee
28.09.2017

TTTTTiiiiimememememe
03.30 P.M.

24.09.2018

10.30 A.M.

24.09.2019

10.30 A.M.

il of Spppppeeeeeciaciaciaciacial Rl Rl Rl Rl Resoesoesoesoesollllluuuuutttttioioioioionnnnns Ps Ps Ps Ps Paaaaassssssesesesesed Dd Dd Dd Dd Duuuuurrrrriiiiinnnnng lg lg lg lg laaaaassssst tt tt tt tt thhhhhrrrrreeeeee Ae Ae Ae Ae Annnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnngggggsssss:::::
il of S
DDDDDetetetetetaaaaail of S
il of S
il of S

SlSlSlSlSl..... PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of S
rs of Spppppeeeeeciaciaciaciacial Rl Rl Rl Rl Resoesoesoesoesollllluuuuutttttioioioioionnnnn
rs of S
rs of S
rs of S
NNNNNooooo.....

DDDDDaaaaattttteeeee

FFFFFiiiiinnnnnaaaaancianciancianciancialllll
YYYYYeaeaeaeaearrrrr

1 Re-appointment of Mr. Pulkit Seth as Managing Director of the

24th September, 2019 2018-19

Company.

Pearl Global Industries Limited     Annual Report 2019-20

63

Corporate Governance (contd...)

SlSlSlSlSl..... PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of S
rs of Spppppeeeeeciaciaciaciacial Rl Rl Rl Rl Resoesoesoesoesollllluuuuutttttioioioioionnnnn
rs of S
rs of S
rs of S
NNNNNooooo.....

Re-appointment of Mr. Anil Nayar as an Independent Director of the
Company.
Re-appointment of Mr. Chittranjan Dua as an Independent Director
of the Company.
Re-appointment of Mr. Rajendra Kumar Aneja as an Independent
Director of the Company.

DDDDDaaaaattttteeeee

FFFFFiiiiinnnnnaaaaancianciancianciancialllll
YYYYYeaeaeaeaearrrrr

24th September, 2019 2018-19

24th September, 2019 2018-19

24th September, 2019 2018-19

2 Re-appointment of Mrs. Shifalli Seth as Whole-Time Director of

24th September, 2018 2017-18

the Company.
To approve remuneration of Mr. Pulkit Seth as Managing Director
of the Company.
To Increase the Investment Limit by Non Resident Indian (NRI) or
Overseas Citizen of Indian (OCI) in the Company.
Alteration of Memorandum of Association of the Company for
commencement of New Business.

24th September, 2018 2017-18

24th September, 2018 2017-18

24th September, 2018 2017-18

3

 NIL

28th September, 2017 2016-17

During  the  year,  no  Special  Resolution  was  passed  through  Postal  Ballot.  No  special  resolution  is  proposed  to  be
conducted through postal ballot.

10.10.10.10.10. MMMMMEEEEEAAAAANS ONS ONS ONS ONS OF CF CF CF CF COOOOOMMMMMMMMMMUUUUUNNNNNIIIIICCCCCAAAAATTTTTIIIIIOOOOONNNNN

(i) The quarterly results of the Company are published in leading and widely circulated English/Hindi National/
Regional Newspapers as per the requirements of the Listing Regulations with the Stock Exchanges. The results
are also submits to the BSE Limited and National Stock Exchange of India Limited, through their online portal.

(ii) The results normally published in Business Standard (English) and Naya India (Hindi).

(iii) The Company’s Financial Results, Shareholding Pattern and official news releases, if any, are displayed on the
Company’s  website  wwwwwwwwwwwwwww.....pppppeaeaeaeaearrrrrlllllggggglololololobbbbbaaaaalllll.....cccccooooommmmm,  besides  the  website  of  BSE  Limited  at      wwwwwwwwwwwwwww.bsei
.bseindndndndndiaiaiaiaia.....cccccooooommmmm      and
.bsei
.bsei
.bsei
National Stock Exchange of India Limited at     wwwwwwwwwwwwwww.n.n.n.n.nseiseiseiseiseindndndndndiaiaiaiaia.....cccccooooommmmm.....

(iv) The  Company  updates  the  media,  analysts,  institutional  investors,  etc.,  through  a  formal  presentation  on  its

financials as well as other business developments.

11.11.11.11.11. GGGGGEEEEENNNNNEEEEERRRRRAAAAAL SL SL SL SL SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEER IR IR IR IR INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN

(((((iiiii))))) AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg

31st Annual General Meeting is scheduled as under:-

Day
Thursday

Date
26-11-2020

Time
11:30 a.m.

Venue
through Video Conferencing (VC) or
Other Audio Visual Means (OAVM)

l yearrrrr
(((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial yea
l yea
l yea
l yea

: The financial year covers the period 1st April to 31st March.

FFFFFiiiiinnnnnaaaaancianciancianciancial Cl Cl Cl Cl Caaaaalelelelelendndndndndaaaaarrrrr, 2020-21
, 2020-21
, 2020-21
, 2020-21
, 2020-21
First Quarter Results
Second Quarter & Half Yearly Results
Third Quarter Results
Fourth Quarter & Annual Results

: Second week of September, 2020
: Second week of November, 2020
: Second week of February, 2021
: Last week of May, 2021

64

Pearl Global Industries Limited     Annual Report 2019-20

Corporate Governance (contd...)

(((((iiiiiiiiiiiiiii))))) DivDivDivDivDivideideideideidend pnd pnd pnd pnd paaaaayyyyymememememennnnnt dt dt dt dt daaaaattttteeeee

Not Applicable

e of Booooooooook Ck Ck Ck Ck Closloslosloslosuuuuurrrrreeeee
e of B
(((((iv)iv)iv)iv)iv) DDDDDaaaaattttte of B
e of B
e of B

: 20th November, 2020 to 26th November, 2020

(both days inclusive)

ck Codedededede
ck Co
ck Exchchchchchaaaaannnnnggggges aes aes aes aes and tnd tnd tnd tnd theiheiheiheiheir Sr Sr Sr Sr Stttttooooock Co
ck Co
ck Ex
(v)(v)(v)(v)(v) LLLLLisisisisistttttiiiiinnnnng og og og og on Sn Sn Sn Sn Stttttooooock Ex
ck Ex
ck Co
ck Ex

Name of the Stock Exchanges, wherein shares of the Company are currently listed and their Script Code:

SSSSStttttooooock Ex
ck Exchchchchchaaaaannnnngggggeeeee
ck Ex
ck Ex
ck Ex
BBBBBSSSSSE LE LE LE LE LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD
1ST FLOOR, NEW TRADING RING
ROTUNDA BUILDING, P. J. TOWERS
DALAL STREET, FORT,
MUMBAI – 400 001Mumbai
NNNNNAAAAATTTTTIIIIIOOOOONNNNNAAAAAL SL SL SL SL STTTTTOOOOOCCCCCK EK EK EK EK EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGE OE OE OE OE OF IF IF IF IF INNNNNDDDDDIIIIIA LA LA LA LA LTTTTTDDDDD.....
“EXCHANGE PLAZA”, PLOT NO. C- 1, G- BLOCK,
BANDRA - KURLA COMPLEX,
BANDRA (E), MUMBAI - 400 051

SSSSScccccrrrrriiiiipt Co
pt Codedededede
pt Co
pt Co
pt Co
532808
532808
532808
532808
532808

PPPPPGGGGGIIIIILLLLL

The Annual Listing Fee for the financial year 2019-2020 has been paid to the Stock Exchanges within stipulated
time.

The ISIN No. of the equity shares of your Company is IIIIINNNNNE940H01014
E940H01014
E940H01014
E940H01014.
E940H01014

(v(v(v(v(viiiii))))) MMMMMaaaaarrrrrkkkkket Pet Pet Pet Pet Prrrrricicicicice De De De De Daaaaatttttaaaaa: H: H: H: H: Higigigigigh, Lh, Lh, Lh, Lh, Looooow dw dw dw dw duuuuurrrrriiiiinnnnng each mo
g each mo
g each mo
g each monnnnnttttth ih ih ih ih in fin fin fin fin finnnnnaaaaancianciancianciancial yea
l yea
l yea
r 2019-20:
r 2019-20:
l year 2019-20:
r 2019-20:
g each mo
l yea
r 2019-20:

MOMOMOMOMONNNNNTTTTTH(S)H(S)H(S)H(S)H(S)

BBBBBOOOOOMMMMMBBBBBAAAAAY SY SY SY SY STTTTTOOOOOCCCCCK EK EK EK EK EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGEEEEE NNNNNAAAAATTTTTIIIIIOOOOONNNNNAAAAAL SL SL SL SL STTTTTOOOOOCCCCCK EK EK EK EK EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGEEEEE

Company Code: 532808

Company Code: PGIL

April 2019

May 2019

June 2019

July 2019

August 2019

September 2019

October 2019

November 2019

December 2019

January 2020

February 2020

March 2020

HHHHHIIIIIGGGGGHHHHH

181.00

198.00

175.00

174.55

164.70

172.50

178.00

202.00

165.00

172.00

153.45

132.10

LLLLLOOOOOWWWWW

158.55

139.60

155.15

145.25

120.00

130.00

146.05

151.20

149.60

147.90

128.05

82.50

HHHHHIIIIIGGGGGHHHHH

184.90

197.90

176.00

173.95

155.00

172.40

179.00

202.80

169.90

174.00

155.00

134.90

LLLLLOOOOOWWWWW

160.05

141.70

155.65

145.00

115.00

131.00

144.05

150.00

145.60

147.70

128.10

82.05

Pearl Global Industries Limited     Annual Report 2019-20

65

Corporate Governance (contd...)

nd NSE NE NE NE NE Nifififififtttttyyyyy :::::
nd NS
nd NS
sex a
(v(v(v(v(viiiiiiiiii)Sh)Sh)Sh)Sh)Shaaaaarrrrre pe pe pe pe prrrrricicicicice pe pe pe pe peeeeerforforforforforrrrrmmmmmaaaaancncncncnce ie ie ie ie in cn cn cn cn cooooommmmmpppppaaaaarrrrrisoisoisoisoison tn tn tn tn to Bo Bo Bo Bo BSSSSSE SE SE SE SE Seeeeennnnnsex a
sex a
sex and NS
nd NS
sex a

MOMOMOMOMONNNNNTTTTTH(S)H(S)H(S)H(S)H(S)
nd of laaaaassssst tt tt tt tt trrrrradadadadadiiiiinnnnnggggg
(((((As oAs oAs oAs oAs on en en en en end of l
nd of l
nd of l
nd of l
he monnnnnttttthhhhh)))))
he mo
he mo
y of t
y of t
dddddaaaaay of t
y of the mo
he mo
y of t

SSSSSHHHHHAAAAARRRRRE PE PE PE PE PRRRRRIIIIICCCCCEEEEES CS CS CS CS COOOOOMMMMMPPPPPAAAAARRRRRIIIIISSSSSIIIIIOOOOONNNNN

BBBBBSSSSSEEEEE

NSNSNSNSNSEEEEE

April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020

PPPPPGGGGGIIIIILLLLL
163.00
172.80
168.55
150.00
134.00
170.00
155.25
164.40
157.20
152.45
132.05
110.10

SSSSSeeeeennnnnsexsexsexsexsex
39,031.55
39,714.20
39,394.64
37,481.12
37,332.79
38,667.33
40,129.05
40,793.81
41,253.74
40,723.49
38,297.29
29,468.49

PPPPPGGGGGIIIIILLLLL
163.10
172.15
168.75
150.50
135.00
168.55
153.90
166.95
156.05
151.30
132.00
110.15

NNNNNifififififtttttyyyyy
11,748.15
11,922.80
11,788.85
11,118.00
11,023.25
11,474.45
11,877.45
12,056.05
12,168.45
11,962.10
11,201.75
8,597.75

(v(v(v(v(viiiiiiiiiiiiiii))))) RRRRReeeeegggggisisisisistttttrrrrraaaaar ar ar ar ar and Sh
nd Sh
nd Sh
nd Shaaaaarrrrre Te Te Te Te Trrrrraaaaannnnnsssssfefefefefer Ag
r Ag
r Ag
r Ageeeeennnnnttttt
nd Sh
r Ag
Link Intime India Pvt. Limited
Nobel Heights, 1st Floor, Plot No.NH-2, C-1 Block
LSC Near Savitri Market, Janakpuri, New Delhi - 110 058.
Tel. No. : 011 - 41410592 - 94, Fax No. : 011 – 41410591,
E-mail: delhi@linkintime.co.in

(((((ix)ix)ix)ix)ix) ShShShShShaaaaarrrrre Te Te Te Te Trrrrraaaaannnnnsssssfefefefefer Sr Sr Sr Sr Sysysysysysttttteeeeemmmmm

The Company’s shares being in compulsory demat form are transferable through the depository system. The
Shares in physical form are processed by the Registrar and Transfer Agents and approved by the Stakeholder
Relationship Committee. Share transfer process reviewed by the Board.

(x)(x)(x)(x)(x) DisDisDisDisDistttttrrrrribuibuibuibuibutttttioioioioion  Sn  Sn  Sn  Sn  Schechechechecheddddduuuuulelelelele
he Commmmmpppppaaaaannnnny ay ay ay ay as os os os os on 31n 31n 31n 31n 31sssssttttt M M M M Maaaaarrrrrch 2020
ch 2020
ch 2020
he Co
he Co
g of t
n of Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of t
g of t
n of Eq
n of Eq
(a)(a)(a)(a)(a) DisDisDisDisDistttttrrrrribuibuibuibuibutttttioioioioion of Eq
ch 2020
g of the Co
ch 2020
he Co
g of t
n of Eq

r of Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrres * held
es * held
es * held
r of Eq
NNNNNuuuuumbmbmbmbmbeeeeer of Eq
r of Eq
es * held
es * held
r of Eq

 Sh Sh Sh Sh Shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs

1 - 500
501 - 1000
1001 - 2000
2001 - 3000
3001 - 4000
4001 - 5000
 5001 – 10000
10001 and above
TTTTTotototototaaaaalllll

NNNNNuuuuumbmbmbmbmbeeeeersrsrsrsrs
15,799
229
105
39
21
18
34
67
16,312
16,312
16,312
16,312
16,312

% t% t% t% t% to to to to to totototototaaaaalllll
96.86
1.40
0.64
0.24
0.13
0.11
0.21
0.41
100.00
100.00
100.00
100.00
100.00

 Eq Eq Eq Eq Equuuuuititititity shy shy shy shy shaaaaarrrrres held
es held
es held
es held
es held
NNNNNuuuuumbmbmbmbmbeeeeersrsrsrsrs
10,60,361
1,70,270
1,61,606
97,935
73,038
84,425
2,52,877
1,97,63,425
2,16,63,937
2,16,63,937
2,16,63,937
2,16,63,937
2,16,63,937

% t% t% t% t% to to to to to totototototaaaaalllll
4.89
0.79
0.75
0.45
0.33
0.39
1.17
91.23
100.00
100.00
100.00
100.00
100.00

66

Pearl Global Industries Limited     Annual Report 2019-20

Corporate Governance (contd...)

ies of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ars ars ars ars as os os os os on 31n 31n 31n 31n 31sssssttttt M M M M Maaaaarrrrrch 2020
ch 2020
ch 2020
ies of Sh
(((((bbbbb))))) CCCCCaaaaattttteeeeegggggooooorrrrries of Sh
ies of Sh
ch 2020
ch 2020
ies of Sh

PPPPPRRRRROOOOOMOMOMOMOMOTTTTTEEEEERRRRRSSSSS
Indian
NRI
TTTTTOOOOOTTTTTAAAAAL (L (L (L (L (AAAAA)))))
Mutual Funds/Foreign Portfolio Investors
Financial Institutions/Banks
NRI’s / Foreign Companies
Bodies Corporate
Clearing Members
Individual
Hindu Undivided Family
Trusts
TTTTTOOOOOTTTTTAAAAAL (B)
L (B)
L (B)
L (B)
L (B)
TTTTTOOOOOTTTTTAAAAAL [(L [(L [(L [(L [(AAAAA) + (B)]
) + (B)]
) + (B)]
) + (B)]
) + (B)]

* Equity Share of the face value of ` 10/- each.

(xi(xi(xi(xi(xi))))) DDDDDeeeeemmmmmaaaaattttteeeeerrrrriaiaiaiaialllllisaisaisaisaisatttttioioioioion of Sh
n of Sh
n of Sh
n of Shaaaaarrrrres aes aes aes aes and lnd lnd lnd lnd liqiqiqiqiquuuuuidididididititititityyyyy
n of Sh

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% t% t% t% t% to to to to to totototototaaaaalllll

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eld*
eld*
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% t% t% t% t% to to to to to totototototaaaaalllll
ShShShShShaaaaarrrrreseseseses

4
1
55555
2
7
187
124
17
14,703
608
2
15,650
15,650
15,650
15,650
15,650
15,655
15,655
15,655
15,655
15,655

0.03
0.00
0.030.030.030.030.03
0.01
0.04
1.20
0.79
0.11
93.92
3.89
0.01
99.97
99.97
99.97
99.97
99.97
100.00
100.00
100.00
100.00
100.00

1,15,62,764
28,62,145
1,44,24,909
1,44,24,909
1,44,24,909
1,44,24,909
1,44,24,909
13,84,147
4,91,651
2,49,971
5,13,731
1,869
41,26,895
4,70,504
260
72,39,028
72,39,028
72,39,028
72,39,028
72,39,028
2,16,63,937
2,16,63,937
2,16,63,937
2,16,63,937
2,16,63,937

53.37
13.21
66.58
66.58
66.58
66.58
66.58
6.39
2.27
1.15
2.37
0.00
19.06
2.17
0.00
33.42
33.42
33.42
33.42
33.42
100.00
100.00
100.00
100.00
100.00

The shares of the Company are in compulsory demat segment and are available for trading in the depository
systems of both NSDL and CDSL. As on 31st March 2020,     2,15,23,357     equity shares of the Company forming
99.35% of the Share Capital of the Company stand dematerialized.

(xii
(xii
(xii))))) OOOOOuuuuutttttssssstttttaaaaandndndndndiiiiinnnnng Gg Gg Gg Gg GDDDDDRRRRRs/As/As/As/As/ADDDDDRRRRRs/Ws/Ws/Ws/Ws/Waaaaarrrrrrrrrraaaaannnnnttttts os os os os or ar ar ar ar annnnny Co
y Coy Co
y Co
y Connnnnvvvvveeeeerrrrrtttttibibibibible i
le i
le i
le innnnnssssstttttrrrrruuuuumememememennnnnttttts, cs, cs, cs, cs, cooooonnnnnvvvvveeeeersiorsiorsiorsiorsion dn dn dn dn daaaaattttte ae ae ae ae and lnd lnd lnd lnd likikikikikely i
ely i
ely i
ely immmmmpppppactactactactact
(xii
(xii
le i
ely i

ooooon en en en en eqqqqquuuuuititititityyyyy:::::

The Company has not issued any GDRs/ADRs/Warrants etc. till date.

g activivivivivitititititiesiesiesiesies
g act
nd hedddddgggggiiiiinnnnng act
g act
nd he
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isk a
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(xiii
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nd he
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(xiii
(xiii

The Company is into the business of exporting garments and may face foreign exchange fluctuation risk.

Till March 31, 2019, the Company used derivative financial instruments, such as forward currency contracts, to
hedge its foreign currency risks. Such derivative financial instruments were initially recognized at fair value on
the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives
are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is
negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement
of profit and loss.

(xiv) PPPPPlllllaaaaannnnnt lot lot lot lot locccccaaaaatttttioioioioionnnnnsssss:::::
(xiv)
(xiv)
(xiv)
(xiv)

The Company have following plants at various locations in India, Bangladesh, Indonesia and Vietnam, as follows:
i)
ii)
iii)
iv)
v)

446, Udyog Vihar, Phase-V, Gurgaon - 122 016 (Haryana)
Plot No.73, Udyog Vihar, Phase-I, Gurgaon-122016
Plot No. 274, Udyog Vihar, Phase-II, Gurgaon-122016
16-17, Udyog Vihar, Phase VI, Khandsa, Gurgaon - 122 004 (Haryana)
751, Pace City II, Sector 37, Khandsa, Gurgaon - 122 004 (Haryana)

Pearl Global Industries Limited     Annual Report 2019-20

67

Corporate Governance (contd...)

Plot at Khasra No 15//19 & 22, Village Begumpur Khatola, Gurugram, Haryana – 122001

vi)
vii) NH-8, Narsinghpur Village, District, Gurgaon (Haryana)
viii) No.64, Janakiraman Nagar, Puthagaram, Cuddapa Road, Kilattur, Chennai-600009
ix) NH-45 Chettipunniam Village near Chengalpattu, Kanchipuram District, Chennai-603204
x)

2/31/, Thirukahukundram Road, Melavalam Village, Madhuranthagam, Taluk,
Kancheepuram District-603303
Plot No. 19A, NTTF Road, Peenya Industrial Area, Bengaluru-560058

xi)
xii) Norp Knit Industries Ltd, North Khailkur, P.O. National University, Gazipur-1704 Bangladesh.
xiii) Norp Knit Industries Ltd- 93, Islampur, Kodda, Nandun, Gazipur-1700, Bangladesh
xiv) Prudent Fashions Ltd. Kaichabari Road, Bypail, Ashulia, Savar, Bangladesh
xv)

PT Pinnacle Apparels, JL Coaster No. 8, Blok A-15-15, a TEPZ, Kawasan Berikat Lamicitra
Tanjung Emas Export Processing Zone, Semarang-50174, Indonesia

xvi) PT Pinnacle Apparels, JL Coaster No. 8, Blok B-15, Kawasan Berikat Lamicitra Tanjung Emas Export

Processing Zone, Semarang-50174, Indonesia

xvii) PT Pinnacle Apparels, JL.Soekarno-Hatta No.55 Km 30.5, Blok KL Dusan Kutan, Rt 04 Rw 02 Kel.

Randugunting, Kec. Bergas, Kabupaten Semarang, Jawa Tengah-50552, Indonesia
xviii) Pearl Global Vietnam Company Limited, Dinh Tri Commune, Bae Giang City, Bae Giang

Province, Vietnam

(xv)
(xv)
(xv) RRRRReeeeegggggisisisisisttttteeeeerrrrreeeeed Offic
d Offic
d Offic
e of t
e of t
he Co
he Co
he Commmmmpppppaaaaannnnnyyyyy :::::
d Office of t
e of the Co
(xv)
(xv)
d Offic
e of t
he Co

A-3, Community Centre, Naraina Industrial Area,
Phase-II, New Delhi - 110 028

CoCoCoCoCorprprprprpooooorrrrraaaaattttte Offic
e Offic
e Offic
e & Ae & Addrddrddrddrddresesesesess fos fos fos fos for Co
e & Ae & A
r Co
r Co
r Corrrrrrrrrresesesesespppppooooondendendendendencncncncnceeeee:::::
e Office & A
e Offic
r Co

Pearl Tower, Plot No.51, Sector-32
Gurugram - 122 001, Haryana (India)

IIIIIn cn cn cn cn caaaaase of a
se of a
se of a
se of annnnny Co
y Co
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act Co
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e Offic
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e Officeeeeerrrrr:::::
se of a
y Co
act Co
e Offic

Mr. Sandeep Sabharwal
Company Secretary
Pearl Global Industries Limited
Pearl Tower, Plot No.51, Sector-32
Gurugram - 122 001, Haryana (India)
Tel. No.
Fax No.

: 91 - 124 - 4651714
: 91 - 124 - 4651173

(xv(xv(xv(xv(xviiiii))))) CCCCCrrrrreeeeedddddit Rit Rit Rit Rit Raaaaatttttiiiiinnnnngggggsssss

The Company has obtained credit ratings from ICRA Limited. Credit ratings of the Company as at the end of
the financial year 2019-20 are given below:

g Ageeeeencncncncncyyyyy CCCCCrrrrreeeeedddddit Rit Rit Rit Rit Raaaaatttttiiiiinnnnnggggg
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RRRRRaaaaatttttiiiiinnnnng Ag
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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
TTTTTotototototaaaaalllll

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he fi
he fi
he finnnnnaaaaancianciancianciancial yea
l yea
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he fi
l yea
eeeeendendendendended Md Md Md Md Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
15.89
10.00
3.03
28.92
28.92
28.92
28.92
28.92

(((((`````/La/La/La/La/Lakkkkkhhhhh)))))
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he fi
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he finnnnnaaaaancianciancianciancial yea
l yea
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eeeeendendendendended Md Md Md Md Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
12.62
6.05
2.65
21.32
21.32
21.32
21.32
21.32

l)

There was one case filed and resolved during the financial year 2019-20, pursuant to the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

13.13.13.13.13. The Company has fully complied with all the requirements of the Corporate Governance including the applicable
requirements specified in Regulation 17 to 27 and clause (b) to (i) of sub-regulation (20) of Regulation 46. There has
been no instance of non-compliance of any requirement of the Corporate Governance Report.

I of the She She She She SEEEEEBBBBBI LI LI LI LI Lisisisisistttttiiiiinnnnng Rg Rg Rg Rg Reeeeeggggguuuuulllllaaaaatttttioioioioionnnnnsssss
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t E of S
cifie
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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.

rs  Righhhhhtttttsssss
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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
C. MMMMMooooodddddifieifieifieifieified od od od od opppppiiiiinnnnnioioioioion(s) i
n(s) i
n(s) i
Audior has given qualified opinion in consolidated financial statements. Details of the same are mentioned in
the Directors’ Report.

Pearl Global Industries Limited     Annual Report 2019-20

69

Corporate Governance (contd...)

D.

e officeeeeerrrrr
e offic
ief exeeeeecucucucucutttttivivivivive offic
e offic
ief ex
ief ex
nd ch
s of chaaaaaiiiiirprprprprpeeeeersorsorsorsorson an an an an and ch
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s of ch
nd chief ex
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nd ch
s of ch

Presently, the Company has separate post of Non-executive Chairman and Managing Director.

E.

g of innnnnttttteeeeerrrrrnnnnnaaaaal al al al al audududududitititititooooorrrrr-The internal auditor reports to Audit Committee as and when required.
g of i
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de of Condndndndnductuctuctuctuct
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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
n Con Co
n Co

A certificate from Auditors of the Company regarding compliance of conditions of Corporate Governance is annexed
with this Annual Report.

CCCCCEO/CEO/CEO/CEO/CEO/CFFFFFO CO CO CO CO CEEEEERRRRRTTTTTIIIIIFIFIFIFIFICCCCCAAAAATTTTTIIIIIOOOOONNNNN

The Managing Director and Chief financial Officer have certified to the Board, inter alia, the accuracy of financial statements
and adequacy of Internal Controls for the financial reporting purpose as required under Regulation 17(8) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, for the year ended 31st March 2020.

Disclos
Disclos
Disclosuuuuurrrrre we we we we wititititith rh rh rh rh resesesesespppppeeeeect tct tct tct tct to deo deo deo deo demmmmmaaaaat st st st st suuuuussssspppppeeeeennnnnse ac
se ac
se ac
se accccccououououounnnnnt / u
t / ut / unclnclnclnclnclaaaaaiiiiimememememed sd sd sd sd suuuuussssspppppeeeeennnnnse ac
t / ut / u
se ac
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se accccccououououounnnnnttttt:::::
Disclos
Disclos
se ac
se ac

Total shares outstanding at the beginning of Financial Year are 420 & total number of shareholders is 20.

In regards, shares remains unclaimed and lying in the IPO escrow A/c of the company for the financial year 2019-20,
information is as follows:
-
- Number of shareholders approached the company for transfer of shares: Nil
- No. of shareholders to whom shares transferred from escrow a/c: Nil
-
-

Aggregate number of shareholders & shares at the close of the year are 20 and 420 respectively.
Voting rights of these shares shall remain frozen till claim made against their shares.

EEEEElelelelelectctctctctrrrrrooooonnnnnic Cic Cic Cic Cic Clealealealealearrrrriiiiinnnnng Sg Sg Sg Sg Seeeeerrrrrvvvvvicicicicice (ECe (ECe (ECe (ECe (ECS)S)S)S)S)

SEBI  had  vide  its  Circular  No.  DCC/FITTCIR-3/2001  dated  October  15,  2001  advised  that  all  companies  should
mandatorily use ECS facility wherever available. In the absence of ECS facility, companies may use warrants for distributing
the dividends and vide its Circular No. D&CC/FITTCIR-04/2001 dated November 13, 2001 had advised companies to
mandatorily print the Bank Account details furnished by the Depositories, on the dividend warrants. This ensures that the
dividend warrants, even if lost or stolen, cannot be used for any purpose other than for depositing the money in the accounts
specified on the dividend warrants and ensures safety for the investors. However, members who wish to receive dividend in
an account other than the one specified while opening the Depository account, may notify their DPs about any change in
the Bank Account details.

DDDDDeeeeepppppositositositositositooooorrrrry  Sy  Sy  Sy  Sy  Seeeeerrrrrvvvvviciciciciceseseseses

For guidance on depository services, shareholders may write to the Company or to the respective Depositories:

NNNNNaaaaatttttioioioioionnnnnaaaaal Sl Sl Sl Sl Seeeeecucucucucurrrrrititititities Dies Dies Dies Dies Deeeeepppppositositositositositooooorrrrry Ly Ly Ly Ly Ltttttddddd.....
Trade World, 4th Floor, Kamala Mills Compound
Senapati Bapat Marg, Lower Parel, Mumbai-400013
Telephone : 022-24994200
Facsimile : 022-24972993
E-Mail : info@nsdl.co.in
Website : www.nsdl.co.in

CeCeCeCeCennnnntttttrrrrraaaaal Dl Dl Dl Dl Deeeeepppppositositositositositooooorrrrry Sy Sy Sy Sy Seeeeerrrrrvvvvvicicicicices (I
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ia) Lia) L
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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.

1.1.1.1.1. OOOOOuuuuur mr mr mr mr maaaaannnnnuuuuufffffactactactactactuuuuurrrrriiiiinnnnng fg fg fg fg facilacilacilacilacilitititititiesiesiesiesies

CouCouCouCouCounnnnntttttrrrrryyyyy
India
Bangladesh
Bangladesh
Indonesia
Vietnam
TTTTTotototototaaaaalllll

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Pearl Global
Norp knit
Prudent Fashions
PT Pinnacle
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.

bbbbb))))) DDDDDesigesigesigesigesign an an an an as ks ks ks ks keeeeey sy sy sy sy stttttrrrrreeeeennnnngggggttttthhhhh

Our Company has 4 (four) design office in USA, UK,
Spain and HongKong and dedicated in house design
team of 75+ designers. The design teams continuously
observe the trend in all markets across the world and
visit  almost  all  the  globally  renowned  fashion  and
textile fairs to refresh their inspiration for new design
ideas. As a result they are well equipped to serve the
global  brands  from  concept  boards  to  ready  new
samples.  New  design  ideas  also  emerge  from  our
various  marketing  teams,  who  are  close  to  and  in
continuous  conversations  with  buyers  located  in
Hongkong, London, USA and Germany. There is an
increased  focus  being  placed  on  creating  brand-
specific  product  designs  to  generate  and  accelerate
business opportunities for global brands and retailers.

Our Company has product co-creation and visibility
of  global  fashion  industry  and  latest  trends.  Apart
from  these  readiness  using  3D  optitex  &  Clo
platform- Gap Inc,Ann Taylor & others

ccccc)))))

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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
OOOOOUUUUUTTTTTLLLLLOOOOOOOOOOKKKKK

The company has achieved a gross income of ` 858.72 Crore
compared to ` 866.56 Crore in last financial year and Net Profit
` 5.01 Crore as compared to Net Profit ` 21.50 Crore in the
previous year on the standalone basis and consolidated income
of ` 1734.18 Crore compared to ` 1,791.42 in the last financial
year and net profit ` 21.72 Crore as compared to net profit
` 67.10 crore in the previous financial year.

Going forward, as the expanded capacity in Vietnam become
fully  operational,  the  share  of  overseas  manufacturing  will
increase leading to improvement in overall margins.

In  the  last  year  as  the  expanded  capacities  in  Bangalore  and
Chennai fully operational, the share of in house manufacturing
already increased leading to improvement in overall margins.

GGGGGOVOVOVOVOVEEEEERRRRRNNNNNMMMMMEEEEENNNNNT IT IT IT IT INNNNNIIIIITTTTTIIIIIAAAAATTTTTIIIIIVVVVVEEEEE

The Apparel Export Promotion Council (AEPC) had appealed
to  Union  Finance  Minister  to  instruct  banks  to  restructure
stressed loans of Apparel manufacturers so that the units can
continue  operations.  In  a  Memorandum  to  the  Finance
Minister, AEPC said that banks are announcing stressed loans

as non-performing assets (NPA) and do not want to restructure
the loans. Several units will be able to continue operations if
the  loans  are  restructured  with  additional  working  capital.
Apparel  Export  is  time  sensitive  sector  that  needs  timely
sanction of loans.

The government has entered into 16 MoU’s with various textile
companies to set up manufacturing facilities at Kakatiya Mega
Textile Park in Warangal. Industries minister KT Rama Rao
said the process of land allotment to interested companies and
investors is being done. The government is establishing textile
parks, handlooms parks and apparel parks to promote the textile
industry with the concept of “farm to fashion” in the state.

The Government plans to extend the two year moratorium for
debt repayments by textile units as units are already struggling
caused by the goods and services tax (GST) refund delay. We
are strong enough and do not plan to restructure our loan. The
sources said the finance ministry is set to approve the textiles
ministry’s recommendation on the moratorium. The two years
of  moratorium  on  debts  repayments  to  banks  would  help
improve liquidity for textile units.

Following  are  various  incentive  Schemes  announced  &
implemented by the Government :

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d of Ex

UUUUUptptptptpto  o  o  o  o                 06.03.2019

07.03.2019 to  31.12.2019

01.01.2020 to  31.03.2021

From 01.04.2020 onwards

me of Schechechechechemesmesmesmesmes
me of S
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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.

MMMMMooooorrrrre se se se se spppppeeeeecific
cific
cific
cificaaaaallllllylylylyly, t, t, t, t, the mea
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L)  no
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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.

LLLLLeeeeevvvvveeeeerrrrraaaaaggggge te te te te teeeeechchchchchnononononololololologgggg y ty ty ty ty to ro ro ro ro reeeeeddddducucucucuce te te te te tiiiiime tme tme tme tme to exo exo exo exo expppppooooorrrrrt ot ot ot ot or tr tr tr tr tuuuuurrrrrnnnnnaaaaarrrrrouououououndndndndnd
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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.

SSSSSpppppeeeeeciaciaciaciacial Fl Fl Fl Fl FTTTTTA uA uA uA uA utttttilililililizaizaizaizaizatttttioioioioion mn mn mn mn misisisisissiosiosiosiosionnnnn

i)

FTA  utilization  mission,  headed  by  a  senior  officer  in
Department of commerce will be set up

ii) To work exclusive with FIEO and export houses to utilize

concessional tariffs in each FTA

iii) Enhance  awareness  of  preferential  duty  benefits  among
MSME,  disseminate  and  facilitate  compliance
requirements (Rules of origin/certificate of origin) under
FTAs for importers and exporters

iv) Set goals for FTA utilization and put in place an effective

FTA monitoring system.

OOOOOPPPPPPPPPPOOOOORRRRRTTTTTUUUUUNNNNNIIIIITTTTTIIIIIEEEEES & TS & TS & TS & TS & THHHHHRRRRREEEEEAAAAATTTTT

Besides Civid-19, rising cost of labour in China and marginal
price difference in fabrics prices in India and China are helping
India. Since costs are rising in China, the media to long term
business will move to other countries which can better or match
china’ cost and delivery capabilities. Since buyers are looking at
alternate markets for sourcing, India has greater chance, being
economically and socially stable country. Besides, large garment
industry in India is getting more organized for higher demands.

Across the entire industry, shops are closed, brands and retailers
actually right now have an oversupply situation with whatever
orders they have placed. They fear that they may not be able to
sell it, so they actually cancelling orders or delaying shipments
of orders.

Asia is key for garments manufacturing and many jobs in the
region  will  be  at  risk,  potentially  causing  social  problems  in
countries  like  Bangladesh,  Combodia  and  China  that  are
dependent on the export economy. A lot of factories in Asia
they  are  seeing  orders  dry  up  in  few  weeks.  Bangladesh  for
example has seen USD 2.6 billion worth of orders in its garment
sector withdrawn, with fresh cancellations coming up. It‘s been
very hard dealing with all the emergencies because we have been
facing cancellations every day on almost a minute-to-minute
basis. Worry is, what is going on to happen to so many people
are engaged in the garment sector and we are not being able to
take care of them properly. We want the workers to be paid, we
want to be safe and for that we need the brands to react and
respond at this point in time.

RRRRRIIIIISSSSSKKKKKS MS MS MS MS MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT & CT & CT & CT & CT & COOOOONNNNNCCCCCEEEEERRRRRNSNSNSNSNS

The overseas buyers are reducing not only their orders but also
their prices due to serious liquidity problems being faced by
them.

Garment manufacturing is totally a labour intensive and even
after  greater  automation  it  will  remain  so.  The  obsolete  and
antiquated labour legislation has hindered the growth of the
extremely  labour  intensive  garment  manufacturing.  The
restrictive  industrial  and  labour  laws  restrain  management’s
capability to respond professionally, effectively and speedily to
the  fast  changing  dynamic  international  textile  scenario  and
request for labour reforms with flexible labour laws to increase
productivity.

There is an urgent need for flexible labour norms specific to
garment manufacturers and exporters to enable them to meet
the increasing international competition especially with regard
to employment of casual labour and overtime hours of work
during high season which are necessitated by the requirement
of meeting tight delivery schedules required for export.

The Company has established factories and operating in the
region for long time continuous efforts for betterment of labour
has been conducted to improve the condition both at work and
home  for  labour  company  till  now  haven’t  faced  any  labour
issues in terms of strike etc.

The  Company  is  undertaking  various  measures  like  lean
manufacturing at ground level to increase the productivity and
further reduce rejection to improve margin.

IIIIINNNNNTTTTTEEEEERRRRRNNNNNAAAAAL CL CL CL CL COOOOONNNNNTTTTTRRRRROOOOOL SL SL SL SL SYSYSYSYSYSTTTTTEEEEEMMMMM

The Company’s internal control system has been designed to
provide for:

i) Accurate  recording  of  transactions  with  internal  checks

and prompt reporting through SAP

ii) Adhere to applicable Accounting standards and policies.

iii) Review of capital investments and long term business plans.

iv) Periodic  review  meetings  to  manage  effectively

implementation of system.

v) Compliance  with  applicable  statutes,  policies,  listing

requirements and operating guidelines

vi) Effective use of resources and safeguarding of assets.

vii) IT  systems  with  in  built controls  to  facilitate  all  of  the

above.

74

Pearl Global Industries Limited     Annual Report 2019-20

Management Discussion
and Analysis (contd...)

The  Company  has  adequate  systems  of  internal  controls  to
ensure that transactions are properly recorded, authorized and
reported apart from safeguarding its assets. Your company has
successfully implemented SAP for its manufacturing units and
will continue upgrading the same.

The  Company  has  its  own  Corporate  Internal  Audit  set  up
which  carries  out  periodic  audits  at  all  locations  and  all
functions  and  brings  out  deviations  to  internal  control
procedures.  The  obser vations  arising  out  of  audit  are
periodically  reviewed  and  compliance  ensured.  It  has
successfully implemented SAP for its manufacturing units and
will continue upgrading the same.

HUHUHUHUHUMMMMMAAAAAN RN RN RN RN REEEEESSSSSOOOOOUUUUURRRRRCCCCCE ME ME ME ME MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT

The  Pearl  Global  Industries  Limited,  forward-thinking  and
employee  centric  human  resource  department  is  devoted  to
providing  effective  policies,  procedures,  people-friendly
guidelines and support governance with the organization. Our
HR philosophy revolves around right people for the right job,
maintaining a safe, hygienic, and sustainable work environment
across geographies, capability building at all level with program
such  as  iLEAD  [Leadership  Development  Program],  SEED
[Operational Development Program];

innovate  with  technolog y  with  our  Human  Resource
Management  System,  Pay  for  Performance  [Achieve:  Pearl’s
Performance  Management  System].  There  by  building  a
PearlONE culture, with  employee  engagement being centric
of  all  our  HR  initiatives.  Presently  Company  employs  ………
work force.

FFFFFooooor Co
r Commmmmpppppaaaaannnnnyyyyy’’’’’s Ps Ps Ps Ps Prrrrrooooogggggrrrrraaaaammmmmsssss;;;;;
r Co
r Commmmmmmmmmuuuuunnnnnititititity ouy ouy ouy ouy our Co
r Co
r Co
r Co
r Co
r Co
a) HHHHHeaeaeaeaealllllttttthhhhh:  M:  M:  M:  M:  Meeeeedddddicicicicicaaaaalllll:::::  Health  Camps  for  workers  across  all

our facilities, every quarter.

b) EdEdEdEdEducucucucucaaaaatttttioioioioionnnnn::::: Scholarship funding education for more than

200 primary & middle school children.

c) WWWWWooooomememememen En En En En Emmmmmpppppooooowwwwweeeeerrrrrmememememennnnnttttt:::::
i)

Personal Advancement and career enhancement (P.A.C.E.)
empowering  women  in  their    professional  and  personal
lives.

ii) Training on menstrual hygiene & sanitary napkins vending

machine.

iii) HER health programme to raise health related awareness.
iv) Gender equality project, in partnership with M&S British

High Commission.

d) MMMMMy Vy Vy Vy Vy Voooooiciciciciceeeee::::: Third party ethics helpline for whistle blowing
of unethical practices, POSH issues  and violation of code
of conducts at workplace

F 25% OR MOR MOR MOR MOR MORRRRRE) IE) IE) IE) IE) IN KN KN KN KN KEEEEEY FIY FIY FIY FIY FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL RL RL RL RL RAAAAATTTTTIIIIIOOOOOSSSSS
F 25% O
S (I.E. C. C. C. C. CHHHHHAAAAANNNNNGGGGGE OE OE OE OE OF 25% O
F 25% O
S (I.E
DDDDDEEEEETTTTTAAAAAIIIIILLLLLS OS OS OS OS OF SF SF SF SF SIIIIIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT CT CT CT CT CHHHHHAAAAANNNNNGGGGGEEEEES (I.E
S (I.E
F 25% O
S (I.E
Details of changes ins Key Financial Ratios are given below:

S.NS.NS.NS.NS.Nooooo..... PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Debtors Turnover (days)
Inventory Turnover (days)

Y 2019-20
Y 2019-20
FFFFFY 2019-20
Y 2019-20
Y 2019-20
43.08
135.11

Y 2018-19 CoCoCoCoCommmmmpppppaaaaarrrrrisioisioisioisioisionnnnn ExExExExExppppplllllaaaaannnnntttttioioioioion  fon  fon  fon  fon  for chr chr chr chr chaaaaannnnnggggge ie ie ie ie in  Rn  Rn  Rn  Rn  Raaaaatttttioioioioio
Y 2018-19
Y 2018-19
FFFFFY 2018-19
Y 2018-19
48.37
118.25

-10.94% Better recovery policy follow up with buyers & buyers mix of with lower payment terms.
14.25% Due to COVID-19, few of buyers had postponed delivery schedules, so inventories

increased at year end.

Interest Coverage Ratio

2.53

3.54

-28.39% Profitability reduced due to withdrawal of Government incentives during the year. Sales

marginally down due to COVID-19, likely to improve going forward.

Current Ratio
Debt Equity Ratio
Operating Profit Margin

1.19
0.23
11.77%

1.15
0.13
14.45%

3.61% Better Management of Working capital.
76.81% Decrease in Net Equity due to INDAS 116 and Hedge Accounting impact.
-18.55% Partially due to GOVID-19 impact and marginally reduced margins, likely to improve in

coming years.

Net Profit Margin
Net Worth

0.58%
29,866.97

2.48%
30,897.52

-76.49% Due to withdrawal of Government incentives during the year.
-3.34% Decrease in Net Equity due to INDAS 116 and Hedge Accounting impact, despite net profits.

11111
22222

33333

44444
55555
66666

77777
88888

CCCCCAAAAAUUUUUTTTTTIIIIIOOOOON SN SN SN SN STTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT
Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe,
estimate, intend, will, expect and other similar expressions are intended to identify such forward looking statements. The Company
assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments,
information or events. Besides the Company cannot guarantee that these assumptions and expectations are accurate or will be
realized and actual results, performance or achievements could thus differ materially from those projected in any such forward
looking statements.

Pearl Global Industries Limited     Annual Report 2019-20

75

Business Responsibility Report (2019-20)

SSSSSECECECECECTTTTTIIIIIOOOOON AN AN AN AN A: G: G: G: G: GEEEEENNNNNEEEEERRRRRAAAAAL IL IL IL IL INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOON AN AN AN AN ABBBBBOOOOOUUUUUT TT TT TT TT THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY

1. Corporate Identity Number (CIN) of the Company L74899DL1989PLC036849

2. Name of the Company

3. Registered address

4. Website

5. E-mail id

Pearl Global Industries Limited

A-3, Community Centre, Naraina Industrial Area,
Phase-II, New Delhi-110028

www.pearlglobal.com

sandeep.sabharwal@pearlglobal.com

6. Financial Year reported

31st March 2020

7. Sector(s) that the Company is engaged in

(industrial activity code-wise)

NIC Code: 141
Manufacturing of wearing apparels

8. List three key products/services that the Company Manufacturing of wearing apparels

manufactures/provides (as in balance sheet)

9. Total number of locations where business activity

is undertaken by the Company

(a) Number of International Locations

(b) Number of National Locations

18

7

11

10. Markets served by the Company -Local/State/

International

National/International

SSSSSECECECECECTTTTTIIIIIOOOOON BN BN BN BN B: FI
: FI
: FI
: FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL DL DL DL DL DEEEEETTTTTAAAAAIIIIILLLLLS OS OS OS OS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY
: FI

1. Paid up Capital (INR)

2. Total Turnover (INR)

3. Total profit after taxes (INR)

21,66,39,370

` 825.33 Crore

` 5.01 Crore

4. Total Spending on Corporate Social Responsibility

1.03% (` 22.15 Lakh) of PAT of FY 2018-19

(CSR) as percentage of profit after tax (%)

5. List of activities in which expenditure in 4 above

has been incurred:-

(a) Education and other activities
(b) Health care activities

SSSSSECECECECECTTTTTIIIIIOOOOON CN CN CN CN C: O: O: O: O: OTTTTTHHHHHEEEEER DR DR DR DR DEEEEETTTTTAAAAAIIIIILLLLLSSSSS

1. Does the Company have any Subsidiary Company/

Companies?

The Company has following subsidiaries:
i. Pearl Apparel Fashions Limited
ii. Pearl Global Kaushal Vikas Limited
iii. SBUYS E-Commerce Limited
iv. Norp Knit Industries Limited
v. Pearl Global Fareast Limited
vi. Pearl Global (HK) Limited
vii. Vin Pearl Global Vietnam Limited
viii. Pearl Global Vietnam Company Limited
ix. Pearl Grass Creations Limited
x. A&B Investment Limited
xi. Prudent Fashions Limited
xii. DSSP Global Limited

76

Pearl Global Industries Limited     Annual Report 2019-20

Business Responsibility Report (2019-20) (contd...)

xiii. PT Pinnacle Apparels
xiv. Pearl Global(Chang Zhou) Textile Technology Co., Ltd.
xv. Pearl Global F.Z.E
xvi. PGIC Investment Limited

2. Do the Subsidiary Company/Companies participate No
in the BR Initiatives of the parent company? If yes,
then  indicate  the  number  of  such  subsidiary
company(s):

3. Do any other entity/entities(e.g. suppliers, distributors No
etc.) that the Company does business with, participate
in  the  BR  initiatives  of  the  Company?  If  yes,  then
indicate the percentage of such entity/entities? [Less
than 30%, 30-60%, More than 60%]

SSSSSECECECECECTTTTTIIIIIOOOOON DN DN DN DN D: B: B: B: B: BR IR IR IR IR INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN

1. Details of Director/Directors responsible for BR

(a) Details of the Director/Director responsible for implementation of the BR policy/policies

1. DIN Number

:

00003044

2. Name

: Mr. Pulkit Seth

3. Designation

: Managing Director

(b) Details of the BR head

No. Particulars

1 DIN Number (if applicable)

2 Name

3 Designation

4

5

Telephone number

e-mail id

Details

00003044

Mr. Pulkit Seth

Managing Director

0124-4651000

Investor.pgil@pearlglobal.com

2. Principle-wise (as per NVGs) BR Policy/policies

(a) Details of compliance (Reply in Y/N)

NNNNNooooo..... QQQQQuesuesuesuesuestttttioioioioionnnnnsssss

1. Do you have a policy/ policies for the principle?

2. Has the policy being formulated in consultation with the relevant

stakeholders?

3. Does the policy conform to any national / international standards?

If yes, specify? (50 words)

4. Has the policy being approved by the Board? Is yes, has it been
signed by MD/ owner/ CEO/ appropriate Board Director?

5. Does the company have a specified committee of the Board/Director/

Official to oversee the implementation of the policy?

P 1P 1P 1P 1P 1

P 2P 2P 2P 2P 2

P 3P 3P 3P 3P 3

P 4P 4P 4P 4P 4

P 5P 5P 5P 5P 5

P 6P 6P 6P 6P 6

P 7P 7P 7P 7P 7

P 8P 8P 8P 8P 8

P 9P 9P 9P 9P 9

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

6.

Indicate the link for the policy to be viewed online?

http://www.pearlglobal.com/investors/policy/

Pearl Global Industries Limited     Annual Report 2019-20

77

Business Responsibility Report (2019-20) (contd...)

NNNNNooooo..... QQQQQuesuesuesuesuestttttioioioioionnnnnsssss

7. Has the policy been formally communicated to all relevant internal

and external stakeholders?

8. Does the company have in-house structure to implement the policy/

policies?

9. Does the Company have a grievance redressal mechanism related to
the policy/ policies to address stakeholders' grievances related to the
policy/ policies?

 10. Has the company carried out independent audit/ evaluation of the

working of this policy by an internal or external agency?

P 1P 1P 1P 1P 1

P 2P 2P 2P 2P 2

P 3P 3P 3P 3P 3

P 4P 4P 4P 4P 4

P 5P 5P 5P 5P 5

P 6P 6P 6P 6P 6

P 7P 7P 7P 7P 7

P 8P 8P 8P 8P 8

P 9P 9P 9P 9P 9

The Policy is available on the website of  the Company and
is expected to be adhered by all the stakeholders.

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

The Company is working on developing and improving its
system for evaluating the implementation of the policies.
The policies are evaluated internally from time to time and
updated whenever required.

(b) If answer to the question at serial number 1 against any principle, is 'No', please explain why: (Tick up to 2 options)

NNNNNooooo..... QQQQQuesuesuesuesuestttttioioioioionnnnnsssss

P 1P 1P 1P 1P 1

P 2P 2P 2P 2P 2

P 3P 3P 3P 3P 3

P 4P 4P 4P 4P 4

P 5P 5P 5P 5P 5

P 6P 6P 6P 6P 6

P 7P 7P 7P 7P 7

P 8P 8P 8P 8P 8

P 9P 9P 9P 9P 9

1 The company has not understood the Principles

2 The company is not at a stage where it finds itself in a position to

formulate and implement the policies on specified principles

3 The company does not have financial or manpower resources available

Not Applicable

for the task

4

5

It is planned to be done within next 6 months

It is planned to be done within the next 1 year

6 Any other reason (please specify)

3. Governance related to BR

(a)

Indicate the frequency with which the Board of Directors,
Committee  of  the  Board  or  CEO  to  assess  the  BR
performance of the Company. Within 3 months, 3-6 months,
Annually, More than 1 year

The  BR  performance  would  be  assessed  yearly.
However,  there  is  no  fixed  term.  The  Board  may
review the BR initiatives and other related policies
on regular intervals.

(b) Does the Company publish a BR or a Sustainability Report?
What is the hyperlink for viewing this report? How frequently
it is published?

The  Business  Responsibility  Report  would  be
published annually on the website of Company at
www.pearlglobal.com

SSSSSECECECECECTTTTTIIIIIOOOOON EN EN EN EN E: P: P: P: P: PRRRRRIIIIINNNNNCCCCCIIIIIPPPPPLLLLLEEEEE-----WWWWWIIIIISSSSSE PE PE PE PE PEEEEERRRRRFFFFFOOOOORRRRRMMMMMAAAAANNNNNCCCCCEEEEE

ics, Tics, Trrrrraaaaannnnnssssspppppaaaaarrrrreeeeencncncncncy ay ay ay ay and And And And And Accccccccccououououounnnnntttttabababababilililililititititityyyyy
ics, Tics, T
uct and gnd gnd gnd gnd govovovovoveeeeerrrrrn tn tn tn tn thehehehehemmmmmselselselselselvvvvves wes wes wes wes wititititith Eh Eh Eh Eh Ettttthhhhhics, T
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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
e safe and cnd cnd cnd cnd cooooonnnnntttttrrrrribuibuibuibuibuttttte te te te te to so so so so suuuuussssstttttaaaaaiiiiinnnnnabababababilililililititititity ty ty ty ty thhhhhrrrrrouououououggggghouhouhouhouhouttttt
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nd serrrrrvvvvvicicicicices tes tes tes tes thhhhhaaaaat at at at at arrrrre safe a
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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)

g of allllll el el el el emmmmmppppplololololoyeyeyeyeyeeseseseses
g of a
ses should pld pld pld pld prrrrrooooomotmotmotmotmote te te te te the whe whe whe whe welelelelellllllbbbbbeieieieieinnnnng of a
g of a
ses shou
le 3: Buuuuusisisisisinesnesnesnesnesses shou
ses shou
le 3: B
PPPPPrrrrriiiiincincincincincippppple 3: B
le 3: B
g of a
ses shou
le 3: B

1. Please indicate the Total number of employees.

2. Please  indicate  the  Total  number  of  employees  hired  on

temporary / contractual / casual basis.

6840

7360

3. Please indicate the Number of permanent women employees.

3341

4. Please  indicate  the  Number  of  permanent  employees  with

NA

disabilities

5. Do you have an employee association that is recognized by

NA

management

Pearl Global Industries Limited     Annual Report 2019-20

79

Business Responsibility Report (2019-20) (contd...)

6. What percentage of your permanent employees is members

NA

of this recognized employee association?

7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment

in the last financial year and pending, as on the end of the financial year.

No. Category

1.

2.

Child labour / forced labour / involuntary labour

Sexual harassment

3. Discriminatory employment

No of complaints filed
during the financial year

No of complaints
pending as on end
of the financial year

NIL

1

NIL

N.A.

NIL

N.A.

8. What percentage of your under mentioned employees were given safety & skill up- gradation training in the last

year?

(a) Permanent Employees

(b) Permanent Women Employees

(c) Casual/Temporary/Contractual Employees

(d) Employees with Disabilities

100%

100%

100%

100%

PPPPPrrrrriiiiincincincincincippppple  4:  B
le  4:  B
le  4:  B
le  4:  Buuuuusisisisisinesnesnesnesnesses  shou
ses  shou
ses  shou
ld  r
ld  r
ld  resesesesespppppeeeeect  tct  tct  tct  tct  the  ihe  ihe  ihe  ihe  innnnnttttteeeeerrrrresesesesesttttts  of
s  of
s  of
s  of,  a,  a,  a,  a,  and  bnd  bnd  bnd  bnd  be  re  re  re  re  resesesesespppppooooonnnnnsivsivsivsivsive  te  te  te  te  tooooowwwwwaaaaarrrrrds  ads  ads  ads  ads  allllll  sl  sl  sl  sl  stttttaaaaakkkkkehoehoehoehoeholdeldeldeldelders,  es
rs,  es
rs,  es
rs,  espppppeeeeeciaciaciaciaciallllllylylylyly
ses  should  r
le  4:  B
ses  shou
ld  r
s  of
rs,  es
ttttthose w
hose w
hose w
hose who aho aho aho aho arrrrre de de de de disadisadisadisadisadvvvvvaaaaannnnntttttaaaaagggggeeeeeddddd, v, v, v, v, vuuuuulnelnelnelnelnerrrrrababababable ale ale ale ale and mnd mnd mnd mnd maaaaargrgrgrgrgiiiiinnnnnaaaaalllllizeizeizeizeizeddddd
hose w

1. Has  the  company  mapped  its  internal  and  external

Yes

stakeholders? Yes/No

2. Out  of  the  above,  has  the  company  identified  the
disadvantaged, vulnerable & marginalized stakeholders.

Yes

3. Are  there  any  special  initiatives  taken  by  the  company  to
engage with the disadvantaged, vulnerable and marginalized
stakeholders. If so, provide details thereof, in about 50 words
or so.

We adhere to preference on payment and orders for
such stakeholders.

ld resesesesespppppeeeeect act act act act and pnd pnd pnd pnd prrrrrooooomotmotmotmotmote he he he he huuuuummmmmaaaaan rn rn rn rn rigigigigighhhhhtttttsssss
ld r
ld r
ses shou
le 5: Buuuuusisisisisinesnesnesnesnesses shou
ses shou
le 5: B
PPPPPrrrrriiiiincincincincincippppple 5: B
le 5: B
ses should r
ld r
ses shou
le 5: B

1. Does the policy of the company on human rights cover only
the  company  or  extend  to  the  Group  /  Joint  Ventures  /
Suppliers / Contractors /NGOs / Others?

2. How many stakeholder complaints have been received in the
past financial year and what percent was satisfactorily resolved
by the management?

Yes. The policy is expected to be adhered by the other
stakeholders.

No complaints relating to human rights were received
during the financial year.

e efforrrrrttttts ts ts ts ts to ro ro ro ro resesesesestttttooooorrrrre te te te te the ehe ehe ehe ehe ennnnnvvvvviiiiirrrrrooooonnnnnmememememennnnnttttt
e effo
ct, and mnd mnd mnd mnd maaaaakkkkke effo
e effo
ct, a
ld resesesesespppppeeeeect, pct, pct, pct, pct, prrrrrotototototeeeeect, a
ct, a
ld r
ld r
s shou
le 6: Buuuuusisisisisinesnesnesnesness shou
s shou
le 6: B
PPPPPrrrrriiiiincincincincincippppple 6: B
le 6: B
s should r
e effo
ct, a
ld r
s shou
le 6: B

1. Does the policy related to Principle 6 cover only the company
or  extends  to  the  Group/Joint  Ventures/  Suppliers  /
Contractors / NGOs / others

Yes, the Company's policy is extended to the entire
group and its subsidiaries/joint ventures follow and
adopt  the  practices/policies  of  the  Company.  The
Company ensures that it is implemented at all these
levels  and  the  Suppliers/  Contractors  /  NGOs
dealing  with  the  Company  are  also  encouraged  to
maintain ethical standards in all their practices.

80

Pearl Global Industries Limited     Annual Report 2019-20

Business Responsibility Report (2019-20) (contd...)

2. Does the company have strategies/ initiatives to address global
environmental issues such as climate change, global warming,
etc? Y/N. If yes, please give hyperlink for webpage etc.

3. Does the company identify and assess potential environmental

risks? Y/N

4. Does  the  company  have  any  project  related  to  Clean
Development Mechanism? If so, provide details thereof, in
about 50 words or so. Also, if Yes, whether any environmental
compliance report is filed?

5. Has the company undertaken any other initiatives on - clean
technology, energy efficiency, renewable energy, etc. Y/N. If
yes, please give hyperlink for web page etc.

Yes,  the  Company  has  come  up  with  various
strategies/ initiatives to address global environmental
issues.  The  Company  has  worked  extensively  to
address  such  issues  by  striking  a  balance  between
economic  growth  and  preservation  of  the
environment.

In  line  with  the  Company's  commitment  towards
conservation  of  energy,  all  its  units  continue  with
their  efforts  to  reduce  wastage,  optimise
consumption and also to improve energy efficiency
through innovative measures.

Identification and assessment of environmental risk
are under process.

Project related to clean development mechanism are
under planning stage.

The Company has taken various initiatives in energy
efficiency  like  waste  heat  recovery,  replacement  of
Tube light with LED and high efficiency motor. The
Company has also installed solar energy plant at its
manufacturing plant located at Chennai.

6. Are the Emissions/Waste generated by the company within
the permissible limits given by CPCB/SPCB for the financial
year being reported?

Yes, the emissions/waste generated by the Company
is  within  the  permissible  limits  given  by  CPCB/
SPCB.

7. Number of show cause/ legal notices received from CPCB /
SPCB which are pending (i.e. not resolved to satisfaction) as
on end of Financial Year.

Nil

PPPPPrrrrriiiiincincincincincippppple 7: B
ld do so in a rn a rn a rn a rn a resesesesespppppooooonnnnnsibsibsibsibsiblelelelele
ld do so i
ld do so i
, shou
g publllllic aic aic aic aic and rnd rnd rnd rnd reeeeeggggguuuuulllllaaaaatttttooooorrrrry py py py py pooooolllllicicicicicyyyyy, shou
, shou
g pub
ses, wses, whehehehehen en en en en ennnnngggggaaaaagggggeeeeed id id id id in in in in in innnnnflflflflflueueueueuencincincincincinnnnng pub
g pub
ses, wses, w
le 7: Buuuuusisisisisinesnesnesnesnesses, w
le 7: B
le 7: B
, should do so i
ld do so i
, shou
g pub
le 7: B
mmmmmaaaaannnnnnenenenenerrrrr

1.

Is  your  company  a  member  of  any  trade  and  chamber  or
association?  If  Yes,  Name  only  those  major  ones  that  your
business deals with:

Yes
(a) Apparel Export Promotion Council
(b) Gurgaon Chamber of Commerce
(c) Federation of Indian Export Organizations

2. Have you advocated/lobbied through above associations for
the advancement or improvement of public good? Yes/No; if
yes  specify  the  broad  areas  (  drop  box:  Governance  and
Administration, Economic Reforms, Inclusive Development
Policies, Energy security, Water, Food Security, Sustainable
Business Principles, Others)

No

Pearl Global Industries Limited     Annual Report 2019-20

81

Business Responsibility Report (2019-20) (contd...)

le devvvvveloeloeloeloelopppppmememememennnnnttttt
le de
ld suuuuuppppppppppooooorrrrrt it it it it inclnclnclnclncluuuuusivsivsivsivsive ge ge ge ge grrrrrooooowtwtwtwtwth ah ah ah ah and end end end end eqqqqquuuuuitititititababababable de
le de
ld s
ld s
ses shou
le 8: Buuuuusisisisisinesnesnesnesnesses shou
ses shou
le 8: B
PPPPPrrrrriiiiincincincincincippppple 8: B
le 8: B
ses should s
le de
ld s
ses shou
le 8: B

1. Does the company have specified programmes / initiatives/
projects in pursuit of the policy related to Principle 8? If yes
details thereof.

2. Are the programmes/projects undertaken through in-house
team  /  own  foundation  /external  NGO/government
structures/any other organization?

Principle  8  states  that  businesses  should  support
inclusive  growth  and  equitable  development.  The
Company  endeavours  to  achieve  inclusive  growth
through  its  various  skill  development  programmes
to ensure that benefits accrued by the organization
are available even to the marginalised sections of the
society.

Skill  development  programmes  are  conducted
through in-house team.

3. Have you done any impact assessment of your initiative?

Assessment initiatives are done frequently.

4. What is your company's direct contribution to community
development projects- Amount in INR and the details of the
projects undertaken.

The Company has spent ` 22.15 Lakh towards its
share of CSR obligations during the financial year
2019-20.

5. Have  you  taken  steps  to  ensure  that  this  community
development  initiative  is  successfully  adopted  by  the
community? Please explain in 50 words, or so.

Yes. The Company has a dedicated team of employees
to monitor the CSR activities. Also various activities
such  as  internal  tracking ,  periodical  reports,
telephonic  and  e-mail  communications  are  carried
out by the Company on regular basis to monitor the
successful implementation of the initiative.

PPPPPrrrrriiiiincincincincincippppple 9: B
le 9: B
le 9: B
le 9: Buuuuusisisisisinesnesnesnesnesses shou
ses shou
ses shou
ld eld e
ld e
ld ennnnngggggaaaaaggggge we we we we wititititith ah ah ah ah and pnd pnd pnd pnd prrrrrovovovovovide v
ide v
ide v
ide vaaaaalllllue tue tue tue tue to to to to to theiheiheiheiheir cur cur cur cur cussssstttttooooomememememers ars ars ars ars and cnd cnd cnd cnd cooooonnnnnsssssuuuuumememememers irs irs irs irs in a rn a rn a rn a rn a resesesesespppppooooonnnnnsibsibsibsibsiblelelelele
ses should e
le 9: B
ses shou
ide v
mmmmmaaaaannnnnnenenenenerrrrr

1. What percentage of customer complaints / consumer cases

are pending as on the end of financial year.

2. Does  the  company  display  product  information  on  the
product label, over and above what is mandated as per local
laws? Yes / No / N.A. / Remarks (additional information)

3.

Is there any case filed by any stakeholder against the company
regarding unfair trade practices, irresponsible advertising and/
or anti-competitive behaviour during the last five years and
pending  as  on  end  of  financial  year.  If  so,  provide  details
thereof, in about 50 words or so.

4. Did your company carry out any consumer survey/ consumer

satisfaction trends?

A well-established system is in place for dealing with
customer feedback and complaints. Customers are
provided  multiple  options  to  connect  with  the
Company through e-mail, telephone, website, social
media,  feedback  forms,  etc.  All  complaints  are
appropriately addressed and all efforts are taken to
resolve the same.

Yes,  the  Company  displays  necessary  product
information on the products label.

No  complaints  or  case  is  pending  against  the
Company  for  unfair  trade  practices,  irresponsible
advertising and anti-competitive behaviour.

Our buyers are reputed Retail Chains and we do get
their  feedback  on  consumer  fashion  trends  and
feedback.

82

Pearl Global Industries Limited     Annual Report 2019-20

Corporate Governance Certificate

To

The Members of Pearl Global Industries Limited

1.1.1.1.1. We, Jayant Sood and Associates, Company Secretaries have examined the compliance of conditions of Corporate
Governance by the Company PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEED D D D D (“the Company”), for the year ended
on 31st March 2020, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and paras C and D
of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (“SEBI
Listing Regulations”).

MMMMMAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT’’’’’S RS RS RS RS REEEEESSSSSPPPPPOOOOONSNSNSNSNSIIIIIBBBBBIIIIILLLLLIIIIITTTTTYYYYY

2.2.2.2.2. The compliance of conditions of Corporate Governance is the responsibility of the Management, This responsibility
includes the design, implementation and maintenance of internal control and procedures to ensure compliance with
the conditions of the Corporate Governance stipulated in the SEBI Listing Regulations.

3.3.3.3.3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for
ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of
opinion on the financial statements of the Company.

4.4.4.4.4. We have examined relevant records and documents maintained by the Company for the purposes of providing reasonable

assurance on the compliance with Corporate Governance requirements by the Company.

5.5.5.5.5. We rate carried our examination in accordance with the Guidance Note on Certification of Corporate Governance
issued by the Institute of Company Secretaries of India and was limited to procedures and implementation thereof,
adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an
audit nor an expression of opinion on the financial statements of the Company.

OOOOOPPPPPIIIIINNNNNIIIIIOOOOONNNNN

6.6.6.6.6. Based on our examination of the relevant records and according to the information and explanations provided to us
and the representations provided by the Management, we certify that the Company has complied with the conditions
of Corporate Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and paras C
and D of Schedule V of the Listing Regulations during the year ended 31 March 2020.

7.7.7.7.7. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or

effectiveness with which the Management has conducted the affairs of the Company.

For JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooood ad ad ad ad and As
nd Assososososociaciaciaciaciattttteseseseses
nd As
nd As
nd As
Company Secretaries

((((( JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooooddddd)))))
(FCS: 4482)
(COP: 22410)

UUUUUDDDDDIIIIIN: F004482B000881501
N: F004482B000881501
N: F004482B000881501
N: F004482B000881501
N: F004482B000881501

Place: Gurugram
Date: 07.10.2020

Pearl Global Industries Limited     Annual Report 2019-20

83

Declaration of Compliance with Code of Conduct of Board
of Directors and Senior Management

This is to certify that as per the provisions of Regulation 26 and Schedule V of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board Members and the Senior Management
personnel have affirmed compliance with the Code of Conduct for the financial year ended 31st March, 2020.

Place: Gurugram
Date : July28, 2020

l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd
l Glo
FFFFFooooor Pr Pr Pr Pr Peaeaeaeaearrrrrl Glo
l Glo
l Glo

PPPPPuuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh
Managing Director
DIN 00003044

Certification by Managing Director and Chief Financial
Officer of Pearl Global Industries Limited

We, Pulkit Seth, Managing Director and Kashmir Singh Rathour Chief Financial Officer of Pearl Global Industries Limited
to the best of your knowledge and belief certify that:

A. We have reviewed that financial statements and the Cash Flow Statement for the year ended 31st March, 2020 and to

best of our knowledge and belief:

1)

2)

these statement do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading.

these statement together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.

B. We also certify that to the best of our knowledge and belief, there are no transactions entered into by Pearl Global
Industries Limited during the year, which are fraudulent, illegal or violate of the Company’s Code of Conduct.

C. We are responsible for establishing and maintaining internal controls for financial reporting and have evaluated the
effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the
Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which
we are aware and the steps we have taken or propose to take to rectify these deficiencies.

D. We have indicated to the Auditors and the Audit Committee:

1) Significant changes, if any. in internal control over financial reporting during the year.

2) Significant changes, if any, in accounting policies during the year and that the same have been disclosed in the

notes to the financial statement; and

3)

Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the company’s internal control system over financial reporting.

Place: Gurugram
Date : July 28, 2020

(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
g Dirrrrreeeeectctctctctooooorrrrr
g Di
MMMMMaaaaannnnnaaaaagggggiiiiinnnnng Di
g Di
g Di

r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r)
(Ka(Kashshshshshmmmmmiiiiir Si
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r Si
(Ka(Ka
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(Ka
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l Offic
ief Fief Fiiiiinnnnnaaaaancianciancianciancial Offic
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ief Fief F
CCCCChhhhhief F
l Offic

84

Pearl Global Industries Limited     Annual Report 2019-20

Certificate of Non-disqualification of Directors

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015)

To,
The Members of
Pearl Global Industries Limited A-3, Community Centre,
Naraina Industrial Area, Phase-II, New Delhi-110028

We have examined the relevant register, records, forms, returns and disclosures received from the Directors of PPPPPeaeaeaeaearrrrrl Glo
l Globbbbbaaaaalllll
l Glo
l Glo
l Glo
IIIIIndndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd, having CIN L74899DL1989PLC036849 and having registered office at A-3, Community Centre,
Naraina Industrial Area, Phase-II, New Delhi-110028, (hereinafter referred to as “the Company”), produced before us by
the Company for the purpose of the issuing this Certificate, in accordance with the Regulation 34(3) read with Schedule
V Para-C clause 10(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Director Identification
Number  (DIN)  status  at  the  portal  www.mca.gov.in)  as  considered  necessary and  explanations  furnished  to  us  by  the
Company and respective Directors, we hereby certify that none of the Directors on the Board of the Company as stated
below for the Financial Year ending on 31st March, 2020 have been debarred or disqualified from being appointed or
continuing as Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or
any such other Statutory Authority.

S. NS. NS. NS. NS. Nooooo..... DDDDDIIIIINNNNN

NNNNNaaaaame of Di
me of Di
me of Di
me of Dirrrrreeeeectctctctctooooorrrrr
me of Di

DDDDDaaaaattttte of a
e of a
e of a
e of appppppppppoooooiiiiinnnnntttttmememememennnnnt it it it it in Co
n Con Commmmmpppppaaaaannnnny (Dy (Dy (Dy (Dy (DDDDDD-----MMMMMMMMMM-----YYYYYYYYYYYYYYYYYYYY)))))
n Con Co
e of a

1

2

3

4

5

6

7

8

9

00003021

00003044

01388430

01945795

00036080

01390190

00731956

01928855

08712718

Mr. Deepak Seth

Mr. Pulkit Seth

Mrs. Shifalli Seth
Mr. Vinod Vaish#
Mr. Chittranjan Dua

Mr. Anil Nayar

Mr. Rajendra Kumar Aneja

Mr. Abhishek Goyal

Mrs. Madhulika Bhupatkar

22.03.1994

01.11.2004

19.01.2012

19.01.2012

12.09.2006

19.01.2012

12.09.2006

26.05.2017

18.03.2020

# Mr. Vinod Vaish has resigned from the Board of the Company with effect from April 30, 2020.
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate
is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the
management has conducted the affairs of the Company.

For JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooood & As
d & Assososososociaciaciaciaciattttteseseseses
d & As
d & As
d & As
Company Secretaries

t K Sooooooooooddddd)))))
t K S
(C(C(C(C(CS JS JS JS JS Jaaaaayyyyyaaaaannnnnt K S
t K S
t K S
Proprietor
FCS: 4482, CP No. 22410

Place: Gurugram
Date: 28th July, 2020
F004482B000512814
F004482B000512814
F004482B000512814
UDIN: F004482B000512814
F004482B000512814

Pearl Global Industries Limited     Annual Report 2019-20

85

Independent Auditor’s Report
To The Members of Pearl Global Industries Limited

he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss
he Co
he Co
it of t
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it of t
it of the Co
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it of t
QQQQQuuuuuaaaaalllllifieifieifieifieified Op
d Opiiiiinnnnnioioioioionnnnn
d Op
d Op
d Op
l  Globbbbbaaaaal  Il  Il  Il  Il  Indndndndnduuuuussssstttttrrrrriesiesiesiesies LLLLLiiiiimmmmmitititititeeeeeddddd (((((hereinafter
We have audited the accompanying consolidated financial statements of PPPPPeaeaeaeaearrrrrl  Glo
l  Glo
l  Glo
l  Glo
referred to as “the Holding Company”) ) ) ) ) and its Subsidiaries ( the Holding Company and its subsidiaries together referred
as “the Group”), which comprise the Consolidated Balance Sheet as at March 31, 2020, and the consolidated statement of
profit and loss, consolidated statement of changes in equity and consolidated statement of cash flows for the year then
ended, and notes to the consolidated financial statement, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as “the consolidated financial statements).

In our opinion and to the best of our information and according to the explanations given to us, except for the possible
effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid consolidated financial
statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and a true and
fair view in conformity with Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in
India, of the consolidated state of affairs of the Group as at March 31, 2020, consolidated profit, consolidated changes in
equity and consolidated cash flows for the year then ended.

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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.

S.S.S.S.S. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs
NNNNNooooo.....

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it addr

11111 AAAAAdededededeqqqqquuuuuacacacacacy ay ay ay ay and cnd cnd cnd cnd cooooommmmmpppppletletletletleteeeeenesnesnesnesness of d
s of d
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es of R
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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.

-

OOOOOuuuuur  pr  pr  pr  pr  prrrrroooooccccceeeeeddddduuuuurrrrres  ies  ies  ies  ies  inclnclnclnclncludeudeudeudeudeddddd,  bu,  bu,  bu,  bu,  but  wt  wt  wt  wt  weeeeerrrrre  not  l
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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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it addr
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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.

OOOOOuuuuur  pr  pr  pr  pr  prrrrroooooccccceeeeeddddduuuuurrrrres  ies  ies  ies  ies  inclnclnclnclncludeudeudeudeudeddddd,  bu,  bu,  bu,  bu,  but  wt  wt  wt  wt  weeeeerrrrre  not  l
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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

he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss
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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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a & Co
a & Co
a & Co.....
a & Co
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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t of e
t of P
he Co
t of e
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he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act,ct,ct,ct,ct,
he Co
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n 143 of t
n 3 of Seeeeectctctctctioioioioion 143 of t
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) of Sububububub-se-se-se-se-sectctctctctioioioioion 3 of S
n 3 of S
) of S
se (se (iiiii) of S
) of S
se (se (
l Connnnntttttrrrrroooools uls uls uls uls undendendendender Cr Cr Cr Cr Clllllaaaaauuuuuse (
l Co
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n 143 of the Co
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n 3 of S
) of S
l Co
2013 (“ttttthe Ahe Ahe Ahe Ahe Act”)
ct”)
ct”)ct”)
2013 (“
2013 (“
ct”)
2013 (“
2013 (“

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March
31, 2020, we have audited the internal financial controls with reference to financial statements of Pearl Global Industries
Limited (the “Holding Company”) and its Subsidiaries, which are companies incorporated in India, as of that date.

MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt’t’t’t’t’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititity foy foy foy foy for Ir Ir Ir Ir Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co
l Co
l Co
l Connnnntttttrrrrrooooolslslslsls
l Co

The respective Board of Directors of the Holding Company and its subsidiaries, which are companies incorporated in
India, are responsible for establishing and maintaining internal financial controls based on the internal control with reference
to financial statements criteria established by the respective Companies considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute
of Chartered Accountants of India (“ICAI’). These responsibilities include the design, implementation and maintenance
of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.

AAAAAudududududitititititooooorsrsrsrsrs’  R’  R’  R’  R’  Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititityyyyy

Our responsibility is to express an opinion on the internal financial controls with reference to these consolidated financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to
be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls with reference to these consolidated financial statements was established and maintained
and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system with reference to these consolidated financial statements and their operating effectiveness. Our audit of internal
financial controls with reference to financial statements included obtaining an understanding of internal financial controls
with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit
opinion on the Parent’s internal financial controls with reference to these consolidated financial statements.

hese cooooonnnnnsososososolllllidididididaaaaattttteeeeed fid fid fid fid finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss
hese c
l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to to to to to these c
hese c
l Co
g of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co
l Co
g of I
MMMMMeaeaeaeaeannnnniiiiinnnnng of I
g of I
hese c
l Co
g of I

A company’s internal financial control with reference to these consolidated financial statements is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with
reference to financial statements includes those policies and procedures that

Pearl Global Industries Limited     Annual Report 2019-20

93

Annexure ‘A’ to the Independent Auditors’ Report (contd...)

(1) pertain  to  the  maintenance  of  records  that,  in  reasonable  detail,  accurately  and  fairly  reflect  the  transactions  and

dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition

of the company’s assets that could have a material effect on the financial statements.

IIIIInnnnnheheheheherrrrreeeeennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititaaaaatttttioioioioionnnnns of I
s of I
s of I
s of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co
l Co
l Co
l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to fio fio fio fio finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss
s of I
l Co

Because of the inherent limitations of internal financial controls with reference to these consolidated financial statements,
including the possibility of collusion or improper management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to
these consolidated financial statements to future periods are subject to the risk that the internal financial control with
reference to these consolidated financial statements may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.

OpOpOpOpOpiiiiinnnnnioioioioionnnnn

In our opinion to the best of our information and according to the explanation given to us and based on consideration of
the reports of the other auditors referred to in Other Matter paragraph below, the Holding and its Subsidiaries companies,
which are companies incorporated in India, have, maintained in all material respects, an adequate internal financial controls
system with reference to these consolidated financial statements and such internal financial controls with reference to these
consolidated financial statements were operating effectively as at March 31, 2020, based on the internal control criteria
established by the respective companies considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants
of India.

OOOOOtttttheheheheher Mr Mr Mr Mr Maaaaatttttttttteeeeersrsrsrsrs

Our aforesaid report under Section 143 (3) (i) of the Act on the adequacy and operating effectiveness of the internal
financial controls, in so far as it relates to three subsidiary companies, which are incorporated in India and where such
reporting  under  Section  143(3)  of  the  companies  Act  2013,  is  applicable  is  based  on  the  corresponding  report  of  the
auditor of such subsidiary incorporated in India. Our opinion is not modified in respect of the above matters.

FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co
a & Co.....
a & Co
a & Co
a & Co
Chartered Accountants,
Firm Registration Number 008352N

(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Agaaaaarrrrrwwwwwaaaaalllll)))))
k Ag
k Ag
k Ag
Partner
Membership Number 073696
N:20073696AAAAAAAAAAAAAAAABBBBBN7839
N7839
N7839
N:20073696A
UUUUUDDDDDIIIIIN:20073696A
N:20073696A
N7839
N7839
N:20073696A

Place of Signature: New Delhi
Date: July 28, 2020

94

Pearl Global Industries Limited     Annual Report 2019-20

Consolidated Balance Sheet
as at March 31, 2020

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

I.I.I.I.I.

AsAsAsAsAssetsetsetsetsetsssss
1.1.1.1.1.

2.2.2.2.2.

Property, plant and equipment

NNNNNooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss
(a)
(b) Capital work in progress
Right to use asset
(c)
Investment properties
(d)
(e)
Goodwill
(f ) Other Intangible assets
Financial assets
(g)
(i)
(ii)
(iii) Other financial assets

Investment
Loans

Non current tax assets (net)

(h) Deferred tax assets
(i)
(j) Other non current assets
TTTTTotototototaaaaal Nl Nl Nl Nl Nooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss

CCCCCuuuuurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss
(a)
(b)

Inventories
Financial assets
Investments
(i)
(ii) Trade receivables
(iii) Cash and cash equivalents
(iv) Bank balances other than cash and cash equivalents
(v)
(vi) Other financial assets

Loans

(c) Other current assets
TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss
TTTTTotototototaaaaal As
l As
l As
l Assetsetsetsetsetsssss
l As

IIIIII.I.I.I.I.

EqEqEqEqEquuuuuititititity Ay Ay Ay Ay And Lnd Lnd Lnd Lnd Liabiabiabiabiabilililililitititititiesiesiesiesies
1.1.1.1.1.

Equity share capital

EqEqEqEqEquuuuuititititityyyyy
(a)
(b) Other equity
EqEqEqEqEquuuuuititititity ay ay ay ay attttttttttrrrrribuibuibuibuibutttttababababable t
le t
le t
le to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs
le t
Non - controlling interest
TTTTTotototototaaaaal el el el el eqqqqquuuuuititititityyyyy

2.2.2.2.2.

LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies
NNNNNooooonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies
Financial liabilities
(a)
Borrowings
(i)
(ii)
Lease Liabilities
(ii) Others financial liabilities
Provisions

(b)
(b) Deferred tax liabilities
(c) Other non current liabilities

TTTTTotototototaaaaal nol nol nol nol nonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies

CCCCCuuuuurrrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies
(a)

Financial liabilities
Borrowings
(i)
(ii)
Lease Liabilities
(iii) Trade payables

Total outstanding due of micro enterprises
and small enterprises
Total outstanding due of creditors other
than micro enterprises and small enterprises

(iv) Other financial liabilities

(b) Other current liabilities
(c)
(d) Current tax liabilities (net)

Provisions

TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies
TTTTTotototototaaaaal el el el el eqqqqquuuuuititititity ay ay ay ay and lnd lnd lnd lnd liabiabiabiabiabilililililitititititiesiesiesiesies

Summary of Significant Accounting Policies

NNNNNotototototeeeee
NNNNNooooo.....

4
5
49
6
7
8

9
10
11
12
13
14

15

9
16
17
18
10
11
14

19
20

21
49
22
23
12
24

21A
49
25

22
24
23
26

3

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

22,189.06
3,610.29
10,725.98
7,393.26
1,792.66
84.76

3,084.37
2,445.25
1,363.86
87.61
763.99
772.82
--------------------------------------------
54,313.90
54,313.90
54,313.90
54,313.90
54,313.90
--------------------------------------------

26,387.33

692.68
22,042.47
8,808.89
2,168.83
1,731.24
114.99
8,970.37
--------------------------------------------
70,916.80
70,916.80
70,916.80
70,916.80
70,916.80
--------------------------------------------
125,230.70
125,230.70
125,230.70
125,230.70
125,230.70
===================

2,166.39
47,891.00
--------------------------------------------
50,057.39
50,057.39
50,057.39
50,057.39
50,057.39
1,296.44
--------------------------------------------
51,353.83
51,353.83
51,353.83
51,353.83
51,353.83
--------------------------------------------

9,983.68
6,987.43
246.97
2,079.72
248.31
2,997.91
--------------------------------------------
22,544.02
22,544.02
22,544.02
22,544.02
22,544.02
--------------------------------------------

25,715.32
810.25

331.05

17,775.62

5,717.63
857.35
68.40
57.23
--------------------------------------------
51,332.85
51,332.85
51,332.85
51,332.85
51,332.85
--------------------------------------------
125,230.70
125,230.70
125,230.70
125,230.70
125,230.70
===================

24,355.89
778.62
-
7,429.89
1,897.56
114.94

3,276.16
2,293.60
1,402.45
104.00
452.22
1,354.45
--------------------------------------------
43,459.78
43,459.78
43,459.78
43,459.78
43,459.78
--------------------------------------------

23,632.17

-
22,177.86
9,434.12
1,707.71
1,664.72
1,687.43
6,389.55
--------------------------------------------
66,693.56
66,693.56
66,693.56
66,693.56
66,693.56
--------------------------------------------
110,153.34
110,153.34
110,153.34
110,153.34
110,153.34
===================

2,166.39
44,820.35
--------------------------------------------
46,986.73
46,986.73
46,986.73
46,986.73
46,986.73
1,153.26
--------------------------------------------
48,140.00
48,140.00
48,140.00
48,140.00
48,140.00
--------------------------------------------

8,106.76
-
222.00
2,112.60
340.46
3,309.63
--------------------------------------------
14,091.45
14,091.45
14,091.45
14,091.45
14,091.45
--------------------------------------------

23,486.07
-

63.70

18,042.77

5,156.89
866.66
81.67
224.13
--------------------------------------------
47,921.89
47,921.89
47,921.89
47,921.89
47,921.89
--------------------------------------------
110,153.34
110,153.34
110,153.34
110,153.34
110,153.34
===================

FFFFFooooor & o
r & o
r & o
r & on bn bn bn bn behehehehehaaaaalllllf of B
f of B
f of B
f of Boooooaaaaarrrrrd of Di
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r & o
f of B
d of Di
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l Glo

(D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh)))))
Chairman
DIN 00003021
(S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll)))))
Company Secretary
M. No. ACS - 8370

The accompanying notes form an integral part of these consolidated financial statements
As per our Report of even date attached
FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co
a & Co
a & Co
a & Co.....
a & Co
CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss
Firm’s Registration Number 008352N
(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Agk Agaaaaarrrrrwwwwwaaaaalllll)))))
k Agk Ag
 Partner
Membership Number 073696

Place of Signature: New Delhi
Date: July 28, 2020

(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
Managing Director
DIN 00003044
r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r)
r Si
r Si
(Ka(Kashshshshshmmmmmiiiiir Si
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r 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

IIIIIncncncncncooooomememememe
Revenue from operations
Other income
me (I+II)I)I)I)I)
me (I+I
TTTTTotototototaaaaal il il il il incncncncncooooome (I+I
me (I+I
me (I+I

ExExExExExpppppeeeeennnnnsessessessesses
(a) Cost of materials consumed
(b) Purchases of stock-in-trade
(c) Changes in inventories of finished goods,
work in progress and stock in trade

Finance costs

(d) Employee benefits expense
(e)
(f ) Depreciation and amortization expense
(g) Other expenses
TTTTTotototototaaaaal exl exl exl exl expppppeeeeennnnnsessessessesses

IIIIIIIIIIIIIII
ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmms as as as as and tnd tnd tnd tnd taaaaax (Ix (Ix (Ix (Ix (IIIIIIIIIII-----IIIIIVVVVV )))))
ofit/ (
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ofit/ (
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VVVVV
ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre te te te te taaaaax (x (x (x (x (VVVVV-----VVVVVI)I)I)I)I)
ofit/ (
ofit/ (
PPPPPrrrrrofit/ (
ofit/ (
VVVVVIIIII TTTTTaaaaax exx exx exx exx expppppeeeeennnnnsesesesese:::::

(a) Current tax
(b) Deferred tax
(c) Adjustment of tax relating to earlier years

he year (r (r (r (r (VVVVVIIIIIIIIII-----VVVVVIIIIIIIIIII)I)I)I)I)
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s) for tr tr tr tr the yea
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ofit/(loslosloslosloss) fo
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ofit/(
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ofit/(
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ofit/(

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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
OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea
, net of taaaaaxxxxx
, net of t
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IIIIIXXXXX TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea
, net of t
he yea

PPPPPrrrrrofit Aofit Aofit Aofit Aofit Attttttttttrrrrribibibibibititititituuuuuababababable t
le tooooo:::::
le t
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Equity shareholders
Non-controlling interests
OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome ame ame ame ame attttttttttrrrrribuibuibuibuibutttttababababable t
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TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome ame ame ame ame attttttttttrrrrribuibuibuibuibutttttababababable t
le t
le t
Equity shareholders
Non-controlling interests
EEEEEaaaaarrrrrnnnnniiiiinnnnngggggs ps ps ps ps peeeeer shr shr shr shr shaaaaarrrrreeeee: (F: (F: (F: (F: (Facacacacace ve ve ve ve vaaaaalllllue ue ue ue ue ````` 10 p
 10 peeeeer shr shr shr shr shaaaaarrrrre)e)e)e)e)
 10 p
 10 p
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1)
2) Diluted (amount in `)

Basic (amount in `)

XXXXX

NNNNNotototototeeeee
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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 year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
he yea
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2019
ch 31, 2020
ch 31, 2019
ch 31, 2020

27
28

29
30
31

32
33
34
35

36

12

37

38

168,512.58
4,905.49
----------------------------------------------------------
173,418.07
173,418.07
173,418.07
173,418.07
173,418.07
----------------------------------------------------------

76,203.44
5,210.29
(582.80)

39,325.57
4,201.04
4,204.40
41,664.00
----------------------------------------------------------
170,225.94
170,225.94
170,225.94
170,225.94
170,225.94
----------------------------------------------------------
3,192.13
3,192.13
3,192.13
3,192.13
3,192.13
68.72
----------------------------------------------------------
3,123.41
3,123.41
3,123.41
3,123.41
3,123.41

774.67
144.15
31.76
----------------------------------------------------------
2,172.83
2,172.83
2,172.83
2,172.83
2,172.83
----------------------------------------------------------

340.22
(69.11)

2,586.30
(38.29)
(991.80)
346.57
----------------------------------------------------------
2,173.90
2,173.90
2,173.90
2,173.90
2,173.90
----------------------------------------------------------
4,346.73
4,346.73
4,346.73
4,346.73
4,346.73
----------------------------------------------------------

2,156.44
16.39

2,047.10
126.80

4,203.55
4,203.55
4,203.55
4,203.55
4,203.55
143.18
143.18
143.18
143.18
143.18

9.95
9.95

175,749.78
3,392.82
----------------------------------------------------------
179,142.60
179,142.60
179,142.60
179,142.60
179,142.60
----------------------------------------------------------

76,220.57
12,954.77
(1,841.00)

36,000.15
3,037.30
2,589.48
43,609.52
----------------------------------------------------------
172,570.78
172,570.78
172,570.78
172,570.78
172,570.78
----------------------------------------------------------
6,571.82
6,571.82
6,571.82
6,571.82
6,571.82
(1,722.12)
----------------------------------------------------------
8,293.94
8,293.94
8,293.94
8,293.94
8,293.94

1,278.10
111.90
193.01
----------------------------------------------------------
6,710.93
6,710.93
6,710.93
6,710.93
6,710.93
----------------------------------------------------------

222.67
(71.93)

1,334.88
(12.67)
-
-
----------------------------------------------------------
1,472.95
1,472.95
1,472.95
1,472.95
1,472.95
----------------------------------------------------------
8,183.88
8,183.88
8,183.88
8,183.88
8,183.88
----------------------------------------------------------

6,728.02
(17.10)

1,372.02
100.94

8,100.04
8,100.04
8,100.04
8,100.04
8,100.04
83.84
83.84
83.84
83.84
83.84

31.06
31.06

Summary of Significant Accounting Policies
The accompanying notes form an integral part of these consolidated financial statements
As per our Report of even date attached
FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co
a & Co.....
a & Co
a & Co
a & Co
CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss
Firm’s Registration Number 008352N
(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Ag
k Ag
k Agaaaaarrrrrwwwwwaaaaalllll)))))
k Ag
Partner
Membership Number 073696

3

Place of Signature: New Delhi
Date: July 28, 2020

(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
Managing Director
DIN 00003044
(Ka(Kashshshshshmmmmmiiiiir Si
(Ka(Ka
r Si
r Si
r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r)
(Ka
r Si
Chief Financial Officer

Place of Signature: Gurugram
Date: July 28, 2020

FFFFFooooor & o
r & on bn bn bn bn behehehehehaaaaalllllf of B
r & o
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f of B
f of B
f of Boooooaaaaarrrrrd of Di
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r & o
f of B
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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

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
FFFFFooooor tr tr tr tr the yea
he yea
he year er er er er endendendendendeddddd
he yea
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he yea
he yea
he yea
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2019
ch 31, 2020
ch 31, 2019
ch 31, 2020

CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Opm Opm Opm Opm Opeeeeerrrrraaaaatttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies
PPPPPrrrrrofit b
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ofit b
ofit b
ofit b
AAAAAdjdjdjdjdjuuuuussssstttttmememememennnnnttttts fos fos fos fos forrrrr:::::
Depreciation and amortization
Interest Paid and other borrowing cost
Unwinding of discount on security deposit
Sundry balances Written back
Grant Amortised during the year
Provision for Doubtful Debt Written Back
Amortisation of deferred Rental Income
Unwinding of discount on security deposits
Profit on sale of current investment - Mutual Fund
Rental Income
Interest Income
Fair value loss (gain) on financial assets measured at fair value through profit and loss
Amortisation of deferred asset - security deposit paid
Fair value loss (gain) on financial assets measured at fair value through OCI
Re-measurement gains/ (losses) on defined benefit plans
Foreign exchange translation reserve
Loss / (Profit) on mark to market forward contracts
Allowance for bad and doubtful debts
Bad debts written off

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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.)

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(Amount in ` Lakh, unless otherwise stated)
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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

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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 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)

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( C )
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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
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

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(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
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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
E 1: CO
NONONONONOTTTTTE 1: CO
E 1: CO
E 1: CO

Pearl  Global  Industries  Limited  is  a  public  limited  Group
domiciled in India and incorporated under the provisions of
the Companies Act,1956. The Group along with its subsidiaries
(collectively referred to as “the Group”), is primarily engaged
in manufacturing, sourcing, distribution and export of ready
to wear apparels through its domestic and global facilities and

operations. The shares of the Group are listed on BSE Limited
and National Stock Exchange of India Limited in India.

The Consolidated financial statements were authorised for issue
in accordance with a resolution of the Board of Directors on
July 28, 2020.

The Group, its subsidiaries (jointly referred to as the ‘Group’
herein  under)  considered  in  these  consolidated  financial
statements are:

me of Grouououououppppp
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me of Gr

CouCouCouCouCounnnnntttttrrrrry ofy ofy ofy ofy of
iiiiincncncncncooooorprprprprpooooorrrrraaaaatttttioioioioionnnnn

l activivivivivitititititiesiesiesiesies
l act
l act
PPPPPrrrrriiiiincincincincincipppppaaaaal act
l act

n (%) of eqqqqquuuuuititititity iy iy iy iy innnnnttttteeeeerrrrresesesesesttttt
n (%) of e
n (%) of e
PPPPPooooorprprprprpooooorrrrrtttttioioioioion (%) of e
n (%) of e
As AAs AAs AAs AAs Attttt
As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
ch 31, 2020 MMMMMaaaaarrrrrch 31, 2019
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2019
ch 31, 2019
ch 31, 2020

ubsidiaiaiaiaiarrrrriesiesiesiesies
ubsid
ubsid
SSSSSubsid
ubsid
Pearl Apparel Fashions Limited
India
Pearl Global Kausal Vikas Limited India
(Formally known as
Pixel Industries Ltd)
SBUYS E-Commerce Limited
Pearl Global Far East Limited
Pearl Global (HK) Limited
Norp Knit Industries Limited

India
Hong Kong
Hong Kong
Bangladesh

Trading of garments
Skill development

Online Trading of garments
Trading of garments
Trading of garments
Manufacturing and
trading of garments

100.00
100.00

100.00
100.00
100.00
99.99

100.00
100.00

-
100.00
100.00
99.99

E  2:  BASSSSS IIIII S  OS   OS  OS   OS  OF   PF   PF   PF   PF   PRRRRR EEEEE PPPPPAAAAA RRRRR AAAAATTTTT IIIII OOOOO N  AN  AN  AN  AN  ANNNNN DDDDD
E  2:  BA
E  2:  BA
N ON ON ON ON OTTTTT E  2:  BA
E  2:  BA
MMMMMEEEEEAAAAASSSSSUUUUURRRRREEEEEMMMMMEEEEENNNNNTTTTT

for the purpose of current non-current classification of assets
and liabilities.

t  of  Commmmmpppppllllliaiaiaiaiancncncncnceeeee : : : : :  The  Financial  Statements  are
t  of  Co
t  of  Co
SSSSStttttaaaaattttteeeeemememememennnnnt  of  Co
t  of  Co
prepared on an accrual basis under historical cost Convention
except for certain financial instruments which are measured at
fair  value.  These  financial  statements  have  been  prepared  in
accordance with the Indian Accounting Standards (Ind AS) as
prescribed under Section 133 of the Companies Act, 2013 read
with  the  Companies  (Indian  Accounting  Standards)  Rules,
2015  as  amended  and  other  relevant  provisions  of  the
Companies  Act,  2013,  as  applicable.The  accounting  policies
are  applied  consistently  to  all  the  periods  presented  in  the
financial statements.

Basis of Preparation and presentation: The financial statements
are  prepared  under  the  historical  cost  convention  except  for
certain  financial  assets  and  liabilities  (including  derivative
financial  instruments)  that  are  measured  at  fair  value  or
amortised cost.All assets and liabilities have been classified as
current or noncurrent according to the Group’s operating cycle
and other criteria set out in the Act. Based on the nature of
products  and  the  time  between  the  acquisition  of  assets  for
processing and their realisation in cash and cash equivalents,
the Group has ascertained its operating cycle as twelve months

Functional and Presentation Currency

The financial statements are presented in ` and all values are
rounded  to  the  nearest  lakh  upto  two  decimal  places  except
otherwise stated.

Going Concern

The board of directors have considered the financial position
of the Group at 31st March 2020 and the projected cash flows
and  financial  performance  of  the  Group  for  at  least  twelve
months from the date of approval of these financial statements
as  well  as  planned  cost  and  cash  improvement  actions,  and
believe  that  the  plan  for  sustained  profitability  remains  on
course.

The  board  of  directors  have  taken  actions  to  ensure  that
appropriate long-term cash resources are in place at the date of
signing the accounts to fund the Group’s operations.

Basis  of  Consolidation:-  The  Consolidated  Financial
Statements have been prepared on the following basis:-

i) The consolidation financial statements of the Group and
its subsidiary companies have been prepared in accordance
with the Ind AS 110 “Consolidated financial statements”,

100

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

on a line-by-line basis by adding together the book values
of like items of assets, liabilities, income, and expenses, after
eliminating  intra-group  balances  and  intra-group
transactions  resulting  in  unrealized  profits  or  losses.
Accounting  policies  of  subsidiaries  have  been  changed
where  necessary  to  ensure  consistency  with  the  policies
adopted  by  the  group.(including  considering  the
materiality impact)

Subsidiaries  are  all  entities  over  which  the  group  has
control. The group controls an entity when the group is
exposed  to,  or  has  rights  to,  variable  returns  from  its
involvement with the entity and has the ability to affect
those  returns  through  its  power  to  direct  the  relevant
activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the group.
They  are  deconsolidated  from  the  date  when  control
ceases.

ii) The difference of the cost to the Group of its investment
in subsidiaries over its share in the equity of the investee
Group as at the date of acquisition of stake is recognized
in financial statements as Goodwill or Capital Reserve, as
the case may be.

iii) Non-controlling interests in the net assets of consolidated
subsidiaries is identified and presented in the consolidated
Balance  Sheet  separately  within  equity  of  the  Group’s
shareholders.

Non-controlling interests in the net assets of consolidated
subsidiaries consists of:

-

-

The amount of equity attributable to Non-controlling
interests  at  the  date  on  which  investment  in  a
subsidiary is made; and

The Non-controlling interests share of movements in
equity since the date parent subsidiary relationship
came  into  exitence.  The  profit  and  other
comprehensive  income  attributable  to  Non-
controlling  interestsof  subsidiaries  are  shown
separately in the consolidated statement of profit and
loss, consolidated statement of changes in equity and
balance sheet respectively

iv) The Consolidated Financial Statements are presented, to
the extent possible, in the same format as adopted by the
parent Group for its individual financial statements.

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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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iiiiiiiiii))))) FFFFFooooorrrrreigeigeigeigeign Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncy Ty Ty Ty Ty Trrrrraaaaannnnnsact
sact

-

-

Except in case of the parent Group, the sales made in
foreign  currencies  are  translated  on  exchange  rate
prevailing on the date of transaction. In case of the
parent Group, the sales made in foreign currency are
translated at an average monthly exchange rate which
approximates the transaction date rate.

Gain/Loss arising out of fluctuation in the exchange
rate on settlement of the transaction is recognized in
the Statement of Profit and Loss.

- Other transactions in foreign currency are recognized
on initial recognition at the exchange rate prevailing
at the time of transaction.

-

Foreign Currency monetary items are reported using
the closing rate as on balance sheet date. The resultant
exchange gain/loss is dealt with in the Statement of
Profit & Loss.

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n of Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss
n of F
IIIIInd And And And And AS 1 PS 1 PS 1 PS 1 PS 1 Prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioion of F
n of F
n of F

The term “Material” has been defined as: Information is
material  if  omitting,  misstating  or  obscuring  it  could
reasonably  be  expected  to  influence  decisions  that  the
primary users of general purpose financial statements make
on the basis of those financial statements, which provide
financial  information  about  a  specific  reporting  entity.
Materiality  depends  on  the  nature  or  magnitude  of
information,  or  both.  An  entity  assesses  whether

Pearl Global Industries Limited     Annual Report 2019-20

101

Notes
to consolidated financial statements for the year ended March 31, 2020

information, either individually or in combination with
other information, is material in the context of its financial
statements  taken  as  a  whole.  Assessing  whether
information  could  reasonably  be  expected  to  influence
decisions made by the primary users of a specific reporting
entity‘s general purpose financial statements requires an
entity to consider the characteristics of those users while
also considering the entity‘s own circumstances.

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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 – 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  –  P
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S  37  –  P
t Assetsetsetsetsetsssss
t As
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CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt As
t As

A  management  or  board  decision  to  restructure  taken
before the end of the reporting period does not give rise
to  a  constructive  obligation  at  the  end  of  the  reporting
period. If an entity starts to implement a restructuring plan,
or announces its main features to those affected, only after
the reporting period, disclosure is required under Ind AS
10 Events after the Reporting Period, if the restructuring
is  material  and  non-disclosure  could  reasonably  be
expected to influence decisions that the primary users of
general purpose financial statements make on the basis of
those  financial  statements,  which  provide  financial
information about a specific reporting entity.

e)e)e)e)e)

S 116 – Leaeaeaeaeasessessessesses
S 116 – L
IIIIInd And And And And AS 116 – L
S 116 – L
S 116 – L

Practical Expedient has been issued which permits lessees
not to account for COVID related concessions as a lease
modification.  The  practical  expedient  has  been  made
applicable from accounting period starting from April 1,
2020.

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s Combmbmbmbmbiiiiinnnnnaaaaatttttioioioioionnnnnsssss
s Co
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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a)a)a)a)a)

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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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nd es
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nd es

Information  about  assumptions  and  estimation
uncertainties that have a significant risk of resulting in a
material adjustment included in the following notes:

• measurement  of  defined  benefit  obligations  and

planned assets: key actuarial assumptions.

•

•

•

•

•

recognition of deferred tax assets: availability of future
taxable profit against which carry-forward tax losses
can be used.

impairment of financial assets.

recognition  and  measurement  of  provisions  and
contingencies: key assumptions about the likelihood
and magnitude of an outflow of resources.

impairment  test  of  non-financial  assets:  key
assumptions used in estimating recoverable cash flows.

fair value measurement of financial instruments.

sificaaaaatttttioioioioionnnnn
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sific

The  Group  presents  assets  and  liabilities  in  the  balance
sheet based on current/ non-current classification.

AsAsAsAsAssetsetsetsetsetsssss:::::

An asset is treated as current when it is:

a) Expected  to  be  realised  or  intended  to  be  sold  or

consumed in normal operating cycle.

b) Held primarily for the purpose of trading

c) Expected to be realised within twelve months after

the reporting period, or

d) Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies:::::

A liability is current when:

(a)

It is expected to be settled in normal operating cycle

(b) It is held primarily for the purpose of trading

(c)

It is due to be settled within twelve months after the
reporting period, or

(d) There  is  no  unconditional  right  to  defer  the
settlement of the liability for at least twelve months
after the reporting period

All other liabilities are classified as non-current.

Deferred  tax  assets  and  liabilities  are  classified  as  non-
current assets and liabilities.

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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.

s  : 
s  : 
g  Costtttts  : 
g  Cos
g  Cos
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s  :  The  present  value  of  the
s  : 
g  Cos
expected cost for the decommissioning of an asset, if any,
after its use is included in the cost of the respective asset if
the  recognition  criteria  for  a  provision  are  met.      (as
applicable)

CCCCCaaaaapppppitititititaaaaal  wl  wl  wl  wl  wooooorrrrrk  ik  ik  ik  ik  in  pn  pn  pn  pn  prrrrrooooogggggrrrrresesesesessssss: : : : :  Capital  work  in  progress
comprises  the  cost  of  fixed  assets  that  are  not  ready  for
their intended use at the reporting date.

Cost  comprises  of  purchase  cost,  related  acquisition
expenses, borrowing costs and other direct expenditure.

Depreciation is provided on a pro-rata basis on the straight-
line  basis  on  the  estimated  useful  life  prescribed  under
Schedule II to Companies Act , 2013 with the following
exception :

Fixed  asset  costing  upto  `  5000  has  been  fully
depreciated during the financial year

Leasehold  land  has  been  amortised  over  the  lease
term.

-

-

-

ddddd)))))

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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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nd measssssuuuuurrrrreeeeemememememennnnnttttt
nd mea
nd mea
RRRRReeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea
nd mea

Intangible  assets  that  are  acquired  by  the  Group  are
measured  initially  at  cost.  Intangible  assets  with  finite
useful  lives  are  measured  at  cost  less  accumulated
amortisation and accumulated impairment losses, if any.
All  expenditures,  qualifying  as  Intangible  Assets  are
amortized over estimated useful life. Specialized softwares
are  amortized  over  a  period  of  3  years  or  license  period
whichever is earlier.

Freehold Land is not depreciated.

TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS

Useful life considered for calculation of depreciation for
various assets class are as follows:-
AsAsAsAsAsset Cset Cset Cset Cset Clllllaaaaassssssssss

UUUUUsefsefsefsefsefuuuuul Ll Ll Ll Ll Lifeifeifeifeife

Factory Building
Non- Factory Building
Plant and Equipment’s
Furniture and Fixtures
Office Equipment
Vehicles
Computer Equipment
Computer Software

30 Years
60 Years
5 - 15 Years
3 - 10 Years
3 - 5 Years
5 - 8 Years
3 Years
5 Years

Depreciation Method, useful lives and residual values are
reviewed  at  each  financial  year  end  and  adjusted,  if
appropriate.

On transition to Ind AS, the Group has elected to continue
with the carrying value of all its intangible assets recognized
as at April 01, 2016, measured as per the previous GAAP,
and  use  that  carrying  value  as  the  deemed  cost  of  such
intangible assets.

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t  Expppppeeeeendndndndndititititituuuuurrrrreeeee : : : : :  Subsequent  expenditure  is
t  Ex
ubseubseqqqqqueueueueuennnnnt  Ex
t  Ex
ubseubse
t  Ex
capitalised  only  when  it  increases  the  future  economic
benefits embodied in the specific asset to which it relates.
All other expenditure is recognized in Statement of Profit
and Loss as incurred.

Amortisation and useful lives: Intangible assets with finite
lives  are  amortised  over  the  useful  life  and  assessed  for
impairment  whenever  there  is  an  indication  that  the
intangible asset may be impaired. The amortisation period
and the amortisation method for an intangible asset with
a finite useful life are reviewed at least at the end of each

104

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

reporting period. Changes in the expected useful life or
the expected pattern of consumption of future economic
benefits embodied in the asset are considered to modify
the amortisation period or method, as appropriate, and are
treated  as  changes  in  accounting  estimates.  The
amortisation expense on intangible assets with finite lives
is recognised in the statement of profit and loss unless such
expenditure forms part of carrying value of another asset.
The amortisation method, residual value and the useful
lives of intangible assets are reviewed annually and adjusted
as necessary.

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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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sact
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sact
sact

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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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sact
sact
sactioioioioionnnnns as as as as and bnd bnd bnd bnd baaaaalllllaaaaancncncncnceseseseses
sact

Transactions in foreign currencies are translated into the
functional currency of the Group at the exchange rates at
the date the transactions or an average rate if the average
rate  approximates  the  actual  rate  at  the  date  of  the
transaction.

Monetary  assets  and  liabilities  denominated  in  foreign

currencies are translated into the functional currency at
the  exchange  rate  at  the  reporting  date.Non-monetary
assets  and  liabilities  that  are  measured  at  fair  value  in  a
foreign  currencies  are  translated  into  the  functional
currency  at  the  exchange  rate  when  the  fair  value  was
determined.  Non-monetary  assets  and  iabilities  that  are
measured in terms of historical cost are not retranslated.

Exchange  differences  on monetary  items  are  recognised
in profit or loss in the period in which they arise except
for exchange differences on foreign currency borrowings
relating to assets under construction for future productive
use, which are included in the cost of those assets when
they  are  regarded  as  an  adjustment  to  interest  costs  on
those foreign currency borrowings.

Advaces received or paid in foreign currency are recognised
at  exchange  rate  on  the  date  of  transaction  and  not  re-
translated.

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p Cop Co
GrGrGrGrGrouououououp Co

The  results  and  financial  position  of  foreign  operations
that  have  a  functional  currency  different  from  the
presentation currency are translated into the presentation
currency as follows:

•

•

assets and liabilities are translated at the closing rate
at the date of that balance sheet

income  and  expenses  are  translated  at  average
exchange  rates  (unless  this  is  not  a  reasonable
approximation of the cumulative effect of the rates
prevailing  on  the  transaction  dates,  in  which  case
income and expenses are translated at the dates of the
transactions),  On  Consolidation,  all  resulting
exchange differences on translation are recognised in
other comprehensive income, that will be reclassified
subsequently to statement of profit and loss.

hhhhh))))) RRRRReeeeevvvvveeeeennnnnue Rue Rue Rue Rue Reeeeecccccooooogggggnnnnnitititititioioioioionnnnn

The  Group  derives  revenue  primarily  from  export  of
manufactured and traded goods.

Effective 01 April 2018, the Group  has adopted Indian
Accounting Standard 115 (Ind AS 115) -’Revenue from
contracts with customers’ The effect on adoption of Ind-
AS 115 was insignificant.

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ue frue frooooom cm cm cm cm cooooonnnnntttttrrrrract wact wact wact wact wititititith cuh cuh cuh cuh cussssstttttooooomememememersrsrsrsrs
ue frue fr

Revenue from contract with customers is recognised when
control  of  the  goods  or  services  are  transferred  to  the
customer at an amount that reflects the consideration to
which the Group expects to be entitled in exchange for

Pearl Global Industries Limited     Annual Report 2019-20

105

Notes
to consolidated financial statements for the year ended March 31, 2020

transferring  distinct  goods  or  services  to  a  customer  as
specified in the contract, excluding the amount collected
on  behalf  of  third  parties(for  example,  taxes  and  duties
collected on behalf of government) and net of returns &
discounts. The Group has concluded that it is acting as
principal in its revenue arrangements.

The Group considers whether there are other promises in
the contract that are separate performance obligations to
which  a  protion  of  the  transaction  price  needs  to  be
allocated. In determining the transaction price for the sale
of  products,  the  Group  considers  the  effect  of  variable
consideration,  the  existence  of  significant  financing
component,  non-cash  consideration,  and  consideration
payable to the customer (if any).

The  Group  assesses  its  revenue  arrangements  against
specific recognition criterior like exposure to significant
risks  &  rewards  associated  with  the  sale  of  goods  or
services.  When  deciding  the  most  appropriate  basis  for
presenting revenue or costs of revenue, both the legal form
and substance of the agreement between the Group and
its  Customers  are  reviewed  to  determine  each  party’s
respective role in the transaction.

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cific r
cific r
SSSSSpppppeeeeecific r
cific r

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le of p
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(((((iiiii))))) SSSSSaaaaale of p
le of p

Revenue  from  sale  of  products  is  recognised  at  the
point in time when control of product is transferred
to  the  customer.  In  case  of  Export  sale  it  is  on  the
basis of date of airway bill/bill of lading.

(((((iiiiiiiiii))))) JJJJJooooob wb wb wb wb wooooorrrrrk ik ik ik ik incncncncncooooomememememe

Revenue from job work on the product is recognised
at  the  point  in  time  when  control  of  services  is
transferred to the customer, generally on the delivery
of the product after completion of job work.

(((((iiiiiiiiiiiiiii))))) ExExExExExpppppooooorrrrrt It It It It Incncncncnceeeeennnnntttttiviviviviveseseseses

Export  Incentives  under  various  schemes  are
accounted in the year of export.

(((((iv)iv)iv)iv)iv) OOOOOtttttheheheheher Ir Ir Ir Ir Incncncncncooooomesmesmesmesmes

a)

Sale of software/ SAP income is recognized at
the  delivery  of  complete  module  &  patches
group
(through 
companies).

reimbursement 

from 

b) Rental Income is recognized on accrual basis as

per the terms of agreement.

c)

In  respect  of  interest  income,  revenue  is

recognised on the time proportion basis, taking
into  account  the  amount  outstanding  and  the
rate of interest applicable.

d) Dividend Income is recognized when the right

to receive is established.

Variable Consideration

If  the  consideration  in  a  contract  includes  a  variable
amount, the Group estimates the amount of consideration
to  which  it  will  be  entitled  in  exchange  for  transferring
the goods to the customer. The variable consideration is
estimated at contract inception and constrained until it is
highly probable that a significant revenue reversal in the
amount  of  revenue  recognised  will  not  occur  when  the
associated uncertainty with the variable consideration is
subsequently resolved.

g Commmmmpppppooooonenenenenennnnnttttt
g Cog Co
g Co
SigSigSigSigSignnnnnificificificificificaaaaannnnnt Ft Ft Ft Ft Fiiiiinnnnnaaaaancincincincincinnnnng Co

Generally, the Group does not receive short term or long
term  advances  from  its  customers  except  in  certain
scenarios. Using the practical expedient in Ind AS 115, the
Group  does  not  adjust  the  promised  amount  of
consideration  for  the  effects  of  a  significant  financing
component  if  it  expects,  at  contract  inception,  that  the
period between the transfer of promised good or service
to the customer and when the customer pays for good or
service will be one year or less. The Group does not expect
to have any contracts where the period between the transfer
of  promised  goods  and  services  to  the  customer  and
payment  by  the  customer  exceeds  one  year.  As  a
consequence,  it  does  not  adjust  any  of  the  transaction
prices for the time value of money.

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act b
CoCoCoCoConnnnntttttrrrrract b
act b
act b

act assssssetsetsetsetsetsssss
act a
CoCoCoCoConnnnntttttrrrrract a
act a
act a

A contract asset is the right to consideration in exchange
for  goods  or  services  transferred  to  the  customer.  If  the
Group  performs  by  transferring  goods  or  services  to  a
customer before the customer pays consideration or before
payment is due, a contract asset is recognised for the earned
consideration that is conditional.

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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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LLLLLeaeaeaeaeasessessessesses

A contract liability is the obligation to transfer goods or
services to a customer for which the Group has received
consideration (or an amount of consideration is due) from
the customer. If a customer pays consideration before the
Group  transfers  goods  or  services  to  the  customer,  a
contract liability is recognised when the payment is made
or  the  payment  is  due  (whichever  is  earlier).  Contract
liabilities  are  recognised  as  revenue  when  the  Group
performs under the contract.

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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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t of no
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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).

ubsidiaiaiaiaiarrrrriesiesiesiesies
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IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid
ubsid
ubsid

Investment in subsidiaries

There is an option to measure investments in subsidiaries
at cost in accordance with Ind AS 27 at either:

(a) Fair value on date of transition; or

(b) Previous GAAP carrying values

The Group has decided to use the previous GAAP carrying
values to value its investments in its subsidiaries as on the
date of transition, April 01, 2016.

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sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss
sh esh e
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sh ash and cnd cnd cnd cnd caaaaash e
sh ash a

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an  original  maturity  of  three  months  or  less,  which  are
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and
cash  equivalents  consist  of  cash  balance  on  hand,  cash
balance at banks and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are considered
an integral part of the Group’s cash management.

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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.

t)t)t)t)t) GGGGGovovovovoveeeeerrrrrnnnnnmememememennnnnt gt gt gt gt grrrrraaaaannnnntttttsssss

Grants from the government are recognised at their fair
value where there is reasonable assurance that the grant
will  be  received  and  the  Group  will  comply  with  all
attached conditions.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to Profit and Loss on
a straight - line basis over the expected lives of related assets
and presented within other income.

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ies and cnd cnd cnd cnd cooooonnnnntttttiiiiinnnnngggggeeeeennnnnt at at at at assssssetsetsetsetsetsssss
ies a
ies a
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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.

v)v)v)v)v) RRRRResea
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ch & de
esearrrrrch & de
ch & de
esea
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ch & de
esea

Research  and  development  costs  that  are  in  nature  of
tangible assets and are expected to generate probable future
economic  benefits  are  capitalised  as  tangible  assets.
Revenue  expenditure  on  research  and  development  is

Pearl Global Industries Limited     Annual Report 2019-20

113

Notes
to consolidated financial statements for the year ended March 31, 2020

charged to the statement of profit and loss in the year in
which it is incurred.

w)w)w)w)w) ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss

When items of income and expense within statement of

profit  and  loss  from  ordinary  activities  are  of  such  size,
nature  or  incidence  that  their  disclosure  is  relevant  to
explain the performance of the Group for the period, the
nature  and  amount  of  such  material  items  are  disclosed
seperately as exceptional items.

114

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

E 4 : PROOOOOPPPPPEEEEERRRRRTTTTTYYYYY, P, P, P, P, PLLLLLAAAAANNNNNTTTTT
E 4 : PR
NONONONONOTTTTTE 4 : PR
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E 4 : PR
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LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss
seholdldldldld
seho
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lealealealealeaseho
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LLLLLeaeaeaeaeaseho
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seho
seho
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FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee VVVVVehehehehehicles
icles
icles
icles
icles
nd  Fnd  Fixixixixixuuuuurrrrreseseseses
nd  Fnd  F
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TTTTTotototototaaaaalllll

(Amount in ` Lakh, unless otherwise stated)

GrGrGrGrGrosososososs  cs  cs  cs  cs  caaaaarrrrrrrrrryiyiyiyiyinnnnng  ag  ag  ag  ag  amoumoumoumoumounnnnnttttt
(((((AAAAAt  Dt  Dt  Dt  Dt  Deeeeeeeeeemememememed  cd  cd  cd  cd  cososososost)t)t)t)t)
As  aAs  aAs  aAs  aAs  at  At  At  At  At  Appppprrrrril  1,  2018
il  1,  2018
il  1,  2018
il  1,  2018
il  1,  2018
Add: Additions made during the year
Less: Disposals/adjustments during the year
Reclassification to other assets
Add: Exchange realignment
Add: Currency transalation reserve
ch  31,  2019
ch  31,  2019
As  aAs  aAs  aAs  aAs  at  Mt  Mt  Mt  Mt  Maaaaarrrrrch  31,  2019
ch  31,  2019
ch  31,  2019
Add: Additions made during the year
Less: Reclassification on account
of adoption of INDAS 116
Less: Disposals/adjustments during the year
Reclassification to other assets
Add: Exchange realignment
Add: Currency transalation reserve
ch  31,  2020
ch  31,  2020
As  aAs  aAs  aAs  aAs  at  Mt  Mt  Mt  Mt  Maaaaarrrrrch  31,  2020
ch  31,  2020
ch  31,  2020
d  deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn
d  de
d  de
AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed  de
d  de
il  1,  2018
il  1,  2018
As  aAs  aAs  aAs  aAs  at  At  At  At  At  Appppprrrrril  1,  2018
il  1,  2018
il  1,  2018
Add: Depreciation charge for the year
Less: Disposals/adjustments during the year
Reclassification to other assets
Add: Exchange realignment
Add: Currency transalation reserve
As  aAs  aAs  aAs  aAs  at  Mt  Mt  Mt  Mt  Maaaaarrrrrch  31,  2019
ch  31,  2019
ch  31,  2019
ch  31,  2019
ch  31,  2019
Add: Depreciation charge for the year
Less: Reclassification on account of adoption of Ind AS 116
Less: Disposals/adjustments during the year
Reclassification to other assets
Add: Exchange realignment
Add: Currency transalation reserve
As  aAs  aAs  aAs  aAs  at  Mt  Mt  Mt  Mt  Maaaaarrrrrch  31,  2020
ch  31,  2020
ch  31,  2020
ch  31,  2020
ch  31,  2020
NNNNNet  Cet  Cet  Cet  Cet  Caaaaarrrrrrrrrryiyiyiyiyinnnnng  Ag  Ag  Ag  Ag  Amoumoumoumoumounnnnnttttt
As  aAs  aAs  aAs  aAs  at  Mt  Mt  Mt  Mt  Maaaaarrrrrch  31,  2020
ch  31,  2020
ch  31,  2020
ch  31,  2020
ch  31,  2020
As  aAs  aAs  aAs  aAs  at  Mt  Mt  Mt  Mt  Maaaaarrrrrch  31,  2019
ch  31,  2019
ch  31,  2019
ch  31,  2019
ch  31,  2019

1,647.34
1,647.34
1,647.34
1,647.34
1,647.34
41.43
76.47
-
-
-
1,612.30
1,612.30
1,612.30
1,612.30
1,612.30
221.95
-

4.53
-
-
-
1,829.72
1,829.72
1,829.72
1,829.72
1,829.72

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

94.45
94.45
94.45
94.45
94.45
2,764.85
-
-
(0.98)
(65.99)
2,792.31
2,792.31
2,792.31
2,792.31
2,792.31
-
(2,812.42)

-
-
-
67.85
47.74
47.74
47.74
47.74
47.74

18.21
18.21
18.21
18.21
18.21
19.67
-
-
(0.49)
0.64
38.03
38.03
38.03
38.03
38.03
0.34
(37.92)
-
-
-
0.91
1.371.37
1.371.37
1.37

5,022.63
5,022.63
5,022.63
5,022.63
5,022.63
1,647.76
-
-
-
32.84
6,703.23
6,703.23
6,703.23
6,703.23
6,703.23
38.17
-

26.95
-
-
250.60
6,965.06
6,965.06
6,965.06
6,965.06
6,965.06

649.03
649.03
649.03
649.03
649.03
217.62
-
-
-
23.55
890.20
890.20
890.20
890.20
890.20
272.23
-
-
-
-
51.18
1,213.61
1,213.61
1,213.61
1,213.61
1,213.61

469.84
469.84
469.84
469.84
469.84
252.20
-
(95.04)
(18.14)
(1.41)
607.45
607.45
607.45
607.45
607.45
191.20
-

-
-
(8.53)
18.95
809.06
809.06
809.06
809.06
809.06

80.94
80.94
80.94
80.94
80.94
135.71
-
(19.87)
(8.20)
0.62
189.20
189.20
189.20
189.20
189.20
152.36
-

-
(4.03)
11.31
348.85
348.85
348.85
348.85
348.85

12,903.37
12,903.37
12,903.37
12,903.37
12,903.37
3,796.54
155.76
95.04
(28.78)
316.74
16,927.14
16,927.14
16,927.14
16,927.14
16,927.14
1,700.23
(91.56)

125.99
-
(13.32)
823.03
19,219.53
19,219.53
19,219.53
19,219.53
19,219.53

3,109.09
3,109.09
3,109.09
3,109.09
3,109.09
1,739.10
50.03
19.87
(17.63)
89.67
4,890.06
4,890.06
4,890.06
4,890.06
4,890.06
1,962.45
(31.77)
73.71
-
(7.93)
328.45
7,067.56
7,067.56
7,067.56
7,067.56
7,067.56

22,296.84
22,296.84
1,129.38
1,129.38
1,029.83
1,029.83
1,129.38 22,296.84
1,029.83 1,129.38
22,296.84
1,029.83
22,296.84
1,129.38
1,029.83
8,930.08
220.39
206.91
263.36
26.80
4.33
-
-
-
(49.84)
(1.94)
-
17.52
18.04
317.74
31,231.46
31,231.46
1,338.54
1,338.54
1,250.46
1,250.46
31,231.46
1,338.54 31,231.46
1,250.46 1,338.54
31,231.46
1,338.54
1,250.46
1,250.46
304.50
345.54
2,801.59
(2,903.98)
-
-

0.02
184.11
341.60
-
-
-
-
(0.84)
(22.69)
48.01
32.84
1,241.28
32,006.06
32,006.06
1,490.92
1,490.92
1,644.00
1,644.00
32,006.06
1,490.92 32,006.06
1,644.00 1,490.92
32,006.06
1,490.92
1,644.00
1,644.00

281.19
281.19
281.19
281.19
281.19
152.94
1.75
-
-
4.81
437.19
437.19
437.19
437.19
437.19
182.60
-
-
-
-
20.37
640.16
640.16
640.16
640.16
640.16

256.44
256.44
256.44
256.44
256.44
191.16
17.56
-
(0.42)
1.27
430.89
430.89
430.89
430.89
430.89
197.51
-
95.26
-
(0.27)
12.57
545.45
545.45
545.45
545.45
545.45

4,394.90
4,394.90
4,394.90
4,394.90
4,394.90
2,456.19
69.33
-
(26.74)
120.56
6,875.58
6,875.58
6,875.58
6,875.58
6,875.58
2,767.50
(69.68)
168.96
-
(12.24)
424.80
9,817.00
9,817.00
9,817.00
9,817.00
9,817.00

1,829.72
1,612.30

46.37
2,754.28

5,751.44
5,813.04

460.21
418.26

12,151.98
12,037.08

1,003.84
813.26

22,189.06
22,189.06
945.47 22,189.06
22,189.06
22,189.06
24,355.89
24,355.89
907.66 24,355.89
24,355.89
24,355.89

a) The above assets includes Gross block of land of ` 78.55 lakh (March 31, 2019: ` 83.08 lakh) situated at Narshingpur, Tehsil
District Gurgaon(Haryana). Out of this Gross block of land of ` 42.50 lakh (March 31, 2019: ` 47.03 lakh) represents the
amount for which the Holding Company has executed a construction project agreement with DLF Retail Developers Limited
on November 30, 2007. However, as certified by the Management, the work has not started during the financial year 2019-
20 due to pending receipt of license from the concerned authority.

Pearl Global Industries Limited     Annual Report 2019-20

115

Notes
to consolidated financial statements for the year ended March 31, 2020

b)

In case of, Pearl Global (HK)Limited, as at March 31, 2020, Land titles represent building usage rights of Taman Pasadena
Apartment at Jakarta (“Hak Milik atas Satuan Rumah Susun”) for a maximum period of 20 years and could be extended.

c)

For Information on property, plant and equipment pledged as security by the Group refer Note 21.

d) The above property, plant and equipment includes assets given on lease, the details of which are as under:

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
Gross carrying amount
Accumulated depreciation

NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
Gross carrying amount
Accumulated depreciation

NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt

E 5 : CAPPPPPIIIIITTTTTAAAAAL WL WL WL WL WOOOOORRRRRK IK IK IK IK IN PN PN PN PN PRRRRROOOOOGGGGGRRRRREEEEESSSSSSSSSS
E 5 : CA
E 5 : CA
NONONONONOTTTTTE 5 : CA
E 5 : CA

Capital work in progress

a) Breakup of capital work in progress is as follows:

Building
Plant and Machinery
Furniture and Fittings
Lease Hold Improvement
Other Expenses

PPPPPlllllaaaaannnnnt at at at at andndndndnd
EqEqEqEqEquuuuuiiiiipppppmememememennnnnttttt

FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee
aaaaand Fnd Fnd Fnd Fnd Fixixixixixuuuuurrrrreseseseses

TTTTTotototototaaaaalllll

27.77
16.59
----------------------------------------------------------
11.18
11.18
11.18
11.18
11.18
----------------------------------------------------------

21.22
12.21
----------------------------------------------------------
9.019.019.019.019.01
----------------------------------------------------------

48.99
28.80
----------------------------------------------------------
20.19
20.19
20.19
20.19
20.19
----------------------------------------------------------

27.77
13.59
----------------------------------------------------------
14.17
14.17
14.17
14.17
14.17
----------------------------------------------------------

21.22
9.16
----------------------------------------------------------
12.06
12.06
12.06
12.06
12.06
----------------------------------------------------------

48.99
22.75
----------------------------------------------------------
26.23
26.23
26.23
26.23
26.23
----------------------------------------------------------

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

3,610.29
---------------------------------------------------------
3,610.29
3,610.29
3,610.29
3,610.29
3,610.29
========================

778.62
---------------------------------------------------------
778.62
778.62
778.62
778.62
778.62
========================

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

2,542.43
1,011.41
-
-
56.45
----------------------------------------------------------
3,610.29
3,610.29
3,610.29
3,610.29
3,610.29
----------------------------------------------------------

632.56
38.38
46.59
54.98
6.11
----------------------------------------------------------
778.62
778.62
778.62
778.62
778.62
----------------------------------------------------------

116

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

E 6 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNT PT PT PT PT PRRRRROOOOOPPPPPEEEEERRRRRTTTTTIIIIIEEEEESSSSS
E 6 : IN
NONONONONOTTTTTE 6 : IN
E 6 : IN
E 6 : IN

GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt
d Cost)t)t)t)t)
d Cos
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(((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed Cos
d Cos
As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018
Add: Additions made during the year
Less: Disposals/adjustments during the year

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

Add: Additions made during the year
Less: Disposals/adjustments during the year

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed ded ded ded ded deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn
il 01, 2018
il 01, 2018
As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018
il 01, 2018
il 01, 2018

Add: Depreciation charge for the year
Less: Disposals/adjustments during the year

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

Add: Depreciation charge for the year
Less: Disposals/adjustments during the year

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt
ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

(Amount in ` Lakh, unless otherwise stated)

LaLaLaLaLandndndndnd
frfrfrfrfreeeeeehoehoehoehoeholdldldldld

LaLaLaLaLandndndndnd
seholdldldldld
seho
lealealealealeaseho
seho
seho

BBBBBuuuuuildildildildildiiiiinnnnnggggg

TTTTTotototototaaaaalllll

3,085.50
1.29
-----
----------------------------------------------------------
3,086.79
----------------------------------------------------------
49.14
-
----------------------------------------------------------
3,135.93
----------------------------------------------------------

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

10.36
-

4,580.71
-

7,676.57
7,676.57
7,676.57
7,676.57
7,676.57
1.291.291.291.291.29

----------------------------------------------------------
10.36
----------------------------------------------------------
-
-
----------------------------------------------------------
10.36
----------------------------------------------------------

----------------------------------------------------------
4,580.71
----------------------------------------------------------
-
-
----------------------------------------------------------
4,580.71
----------------------------------------------------------

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

162.22
162.22
162.22
162.22
162.22
----------------------------------------------------------
85.76
-
----------------------------------------------------------
247.98
247.98
247.98
247.98
247.98
----------------------------------------------------------
85.76
-
----------------------------------------------------------
333.74
333.74
333.74
333.74
333.74
----------------------------------------------------------

----------------------------------------------------------
7,677.86
7,677.86
7,677.86
7,677.86
7,677.86
----------------------------------------------------------
49.14
49.14
49.14
49.14
49.14
-----
----------------------------------------------------------
7,727.00
7,727.00
7,727.00
7,727.00
7,727.00
----------------------------------------------------------

162.22
162.22
162.22
162.22
162.22
----------------------------------------------------------
85.76
85.76
85.76
85.76
85.76
-----
----------------------------------------------------------
247.98
247.98
247.98
247.98
247.98
----------------------------------------------------------
85.76
85.76
85.76
85.76
85.76
-----
----------------------------------------------------------
333.74
333.74
333.74
333.74
333.74
----------------------------------------------------------

3,135.93
3,086.79

10.36
10.36

4,246.97
4,332.73

7,393.26
7,429.89

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

(a)(a)(a)(a)(a) AAAAAmoumoumoumoumounnnnnttttts rs rs rs rs reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in sn sn sn sn stttttaaaaattttteeeeemememememennnnnt of
t of
t of
t of
t of

ppppprrrrrofit a
nd loss fos fos fos fos for ir ir ir ir innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies
nd los
nd los
ofit a
ofit a
ofit and los
nd los
ofit a
Rental Income
Direct operating expenses of property that generated rental income
Direct operating expenses of property that did not generated rental income
IIIIIncncncncncooooome ame ame ame ame arrrrrisiisiisiisiisinnnnng frg frg frg frg frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties b
ies befoefoefoefoeforrrrre che che che che chaaaaargrgrgrgrgiiiiinnnnng deg deg deg deg deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn
ies b
ies b
ies b
Depreciation

IIIIIncncncncncooooome frme frme frme frme frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties (net)
ies (net)
ies (net)
ies (net)
ies (net)

(((((bbbbb))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of i
ue of i
ue of i
ue of innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies
ue of i

EEEEEssssstttttiiiiimmmmmaaaaatttttioioioioion of f
n of f
n of f
n of faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
n of f

980.53
65.88
14.23
900.42
900.42
900.42
900.42
900.42
85.76
---------------------------------------------------------
814.66
814.66
814.66
814.66
814.66
---------------------------------------------------------
10,793.94
10,793.94
10,793.94
10,793.94
10,793.94
---------------------------------------------------------

814.53
53.62
77.46
683.45
683.45
683.45
683.45
683.45
85.76
---------------------------------------------------------
597.69
597.69
597.69
597.69
597.69
---------------------------------------------------------
11,378.15
11,378.15
11,378.15
11,378.15
11,378.15
---------------------------------------------------------

The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum,
area, location, demand, restrictive entry to the complex,age of building and trend of fair market rent.This valuation is based

Pearl Global Industries Limited     Annual Report 2019-20

117

Notes
to consolidated financial statements for the year ended March 31, 2020

on valuations performed by an accredited independent valuer. Fair valuation is based on replacement cost method. The fair
value measurement is categorised in level 2 fair value hierarchy.

(((((ccccc)))))

In the earlier years, the Group had initiated the process of converting its leasehold land (situated at Plot A-3, Naraina, New
Delhi) into freehold land. However, the deed is yet to be transferred in the name of the Company as at March 31, 2020.

E 7 : GOOOOOODDDDDWWWWWIIIIILLLLLLLLLL
E 7 : GO
NONONONONOTTTTTE 7 : GO
E 7 : GO
E 7 : GO

Goodwill on acquisition of subsidiaries
Add: Foreign Exchange Fluctuation
Less: Impairment of Goodwill

E 8 : OTHHHHHEEEEER IR IR IR IR INNNNNTTTTTAAAAANNNNNGGGGGIIIIIBBBBBLLLLLE AE AE AE AE ASSSSSSSSSSEEEEETSTSTSTSTS
E 8 : OT
E 8 : OT
NONONONONOTTTTTE 8 : OT
E 8 : OT

GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt
d Cost)t)t)t)t)
d Cos
d Cos
(((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed Cos
d Cos
il 1, 2018
il 1, 2018
As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2018
il 1, 2018
il 1, 2018
Add: Additions during the year
Less: Disposals / adjustments during the year

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
Add: Additions during the year
Less: Disposals / adjustments during the year

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

AAAAAmomomomomorrrrrtttttisaisaisaisaisatttttioioioioion an an an an and ind ind ind ind immmmmpppppaaaaaiiiiirrrrrmememememennnnnttttt
As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2018
il 1, 2018
il 1, 2018
il 1, 2018
il 1, 2018
Add: Amortisation charge for the year
Less: On disposals / adjustments during the year

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Add: Amortisation charge for the year
Less: On disposals / adjustments during the year

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

1,897.56
120.22
(225.12)
---------------------------------------------------------
1,792.66
1,792.66
1,792.66
1,792.66
1,792.66
========================

1,897.56
-
-
---------------------------------------------------------
1,897.56
1,897.56
1,897.56
1,897.56
1,897.56
========================

(Amount in ` Lakh, unless otherwise stated)

CoCoCoCoCommmmmpupupupuputtttteeeeerrrrr
SSSSSofofofofoftttttwwwwwaaaaarrrrreeeee

219.88
219.88
219.88
219.88
219.88
27.65
-
---------------------------------------------------------
247.53
247.53
247.53
247.53
247.53
17.58
-
---------------------------------------------------------
265.11
265.11
265.11
265.11
265.11
---------------------------------------------------------

85.06
85.06
85.06
85.06
85.06
47.54
-
---------------------------------------------------------
132.60
132.60
132.60
132.60
132.60
---------------------------------------------------------
47.75
-
---------------------------------------------------------
180.35
180.35
180.35
180.35
180.35
---------------------------------------------------------

84.76
114.94

TTTTTotototototaaaaalllll

219.88
219.88
219.88
219.88
219.88
27.65

---------------------------------------------------------
247.53
247.53
247.53
247.53
247.53
17.58
-
---------------------------------------------------------
265.11
265.11
265.11
265.11
265.11
---------------------------------------------------------

85.06
85.06
85.06
85.06
85.06
47.54
-
---------------------------------------------------------
132.60
132.60
132.60
132.60
132.60
---------------------------------------------------------
47.75
-
---------------------------------------------------------
180.35
180.35
180.35
180.35
180.35
---------------------------------------------------------

84.76
84.76
84.76
84.76
84.76
114.94
114.94
114.94
114.94
114.94

118

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

E 9 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTSTSTSTSTS
E 9 : IN
NONONONONOTTTTTE 9 : IN
E 9 : IN
E 9 : IN

(I)(I)(I)(I)(I) NNNNNooooon Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeennnnnttttt

AAAAA..... EqEqEqEqEquuuuuititititity Iy Iy Iy Iy Innnnnssssstttttrrrrruuuuumememememennnnntttttsssss

FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a
nd lossssss
nd los
nd los
ofit a
ofit a
ofit and los
nd los
ofit a
(Q(Q(Q(Q(Quotuotuotuotuoteeeeeddddd)))))
PDS Multinational fashions Limited, India 50,000
(March 31, 2019: 50,000) Equity Shares of ` 10 each fully paid up

B.B.B.B.B.

C.C.C.C.C.

nds - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd)))))
nds - (
nds - (
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in mn mn mn mn muuuuutttttuuuuuaaaaal fl fl fl fl fuuuuunds - (
nds - (
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe
Investments in mutual funds

ies - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd)))))
ies - (
ies - (
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in Gn Gn Gn Gn Govovovovoveeeeerrrrrnnnnnmememememennnnnt set set set set secucucucucurrrrrititititities - (
ies - (
AAAAAt at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
Investments in key man insurance policy (Refer ‘b’ below)
Investments in Government securities
-

Gold Sovereign Bond- 37 units of 2 gram each
issued by Reserve Bank of India

A + B + C)
A + B + C)
TTTTTotototototaaaaal (l (l (l (l (A + B + C)
A + B + C)
A + B + C)

(I(I(I(I(II)I)I)I)I) CCCCCuuuuurrrrrrrrrreeeeennnnnttttt
AAAAA.....

nds - (Quotuotuotuotuoteeeeeddddd)))))
nds - (Q
nds - (Q
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in mn mn mn mn muuuuutttttuuuuuaaaaal fl fl fl fl fuuuuunds - (Q
nds - (Q
nd lossssss
nd los
nd los
ofit a
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a
ofit a
ofit and los
nd los
ofit a
ICICI Prudential Short Term Fund DP Growth
536,068.057 units of Face Value of ` 10 per unit(March 31, 2019: Nil units)
L&T Banking and PSU debt fund direct plan - growth
1,223,214.385 units of Face Value of ` 10 per unit(March 31, 2019: Nil units)
IDFC Banking and PSU debt fund direct plan - growth
1,267,806.925 units of Face Value of ` 10 per unit(March 31, 2019: Nil units)

a) Aggregate book value of quoted investments

Aggregate market value of quoted investments
Aggregate value of unquoted investments
Aggregate amount of impairment in value of unquoted investments
Aggregate value of unquoted investments (net of impairment)

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

141.00

133.50

---------------------------------------------------------
141.00
141.00
141.00
141.00
141.00
---------------------------------------------------------

---------------------------------------------------------
133.50
133.50
133.50
133.50
133.50
---------------------------------------------------------

948.97
---------------------------------------------------------
948.97
948.97
948.97
948.97
948.97
---------------------------------------------------------

1,312.68
---------------------------------------------------------
1,312.68
1,312.68
1,312.68
1,312.68
1,312.68
---------------------------------------------------------

1,992.77

1,828.35

1.63

1.63

---------------------------------------------------------
1,994.40
1,994.40
1,994.40
1,994.40
1,994.40
---------------------------------------------------------
3,084.37
3,084.37
3,084.37
3,084.37
3,084.37
========================

---------------------------------------------------------
1,829.98
1,829.98
1,829.98
1,829.98
1,829.98
---------------------------------------------------------
3,276.16
3,276.16
3,276.16
3,276.16
3,276.16
========================

237.83

227.10

227.75

---------------------------------------------------------
692.68
692.68
692.68
692.68
692.68
========================
833.68
833.68
2,943.37
-
2,943.37

-

-

-

---------------------------------------------------------
-----
========================
133.50
133.50
3,142.66
-
3,142.66

b) The amount invested in key man insurance policy by Pearl Global (HK) Limited has been pledged to bank to

secure banking facilities by the said subsidiary.

Pearl Global Industries Limited     Annual Report 2019-20

119

Notes
to consolidated financial statements for the year ended March 31, 2020

E10 : LOAAAAANSNSNSNSNS
E10 : LO
NONONONONOTTTTTE10 : LO
E10 : LO
E10 : LO

(Unsecured, considered good unless otherwise stated)
Loans to employees
Loans to related parties (Refer note no. 47)
Loans to others

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

7.63
-
2,437.62
----------------------------------------------------------
2,445.25
2,445.25
2,445.25
2,445.25
2,445.25
========================

18.10
-
2,275.50
----------------------------------------------------------
2,293.60
2,293.60
2,293.60
2,293.60
2,293.60
========================

25.78
300.00
1,405.46
----------------------------------------------------------
1,731.24
1,731.24
1,731.24
1,731.24
1,731.24
========================

49.63
300.00
1,315.09
----------------------------------------------------------
1,664.72
1,664.72
1,664.72
1,664.72
1,664.72
========================

a) Loans to others bear interest rate of 2%-2.5% per annum, and are receivable on or before December 31, 2022 and March 31,

2023.

b) The Group has no loans which have significant increase in credit risk and loans which are credit impaired. (Refer Note No.

44)

E 11 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL AL AL AL AL ASSSSSSSSSSEEEEETSTSTSTSTS
E 11 : OT
E 11 : OT
NONONONONOTTTTTE 11 : OT
E 11 : OT

Term deposits
Loan to related parties

(Unsecured, considered good unless otherwise stated)
Security deposits (Refer ‘a’ below)
Interest accrued but not due on
-
-
Deposits with original maturity of more
than 12 months (Refer note 18)
Mark to market forward contracts
Other receivable

TTTTTotototototaaaaal (l (l (l (l (AAAAA)))))

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

1,069.32

948.10

78.38

176.71

28.27
-
265.11

0.80
-
452.48

28.16
8.45
-

40.17
12.14
761.27

-
1.16
----------------------------------------------------------
1,363.86
1,363.86
1,363.86
1,363.86
1,363.86
========================

-
1.07
----------------------------------------------------------
1,402.45
1,402.45
1,402.45
1,402.45
1,402.45
========================

-
-
----------------------------------------------------------
114.99
114.99
114.99
114.99
114.99
========================

462.80
234.34
----------------------------------------------------------
1,687.43
1,687.43
1,687.43
1,687.43
1,687.43
========================

a)

Security deposits are not in the nature of loans hence classified as part of other financial assets.

E 12 : INCCCCCOOOOOMMMMME TAE TAE TAE TAE TAXXXXX
E 12 : IN
NONONONONOTTTTTE 12 : IN
E 12 : IN
E 12 : IN

The major components of income tax expense for the years
ended March 31, 2020 and March 31, 2019 are:
SSSSStttttaaaaattttteeeeemememememennnnnt of p
t of p
t of p
t of prrrrrofit a
ofit a
ofit a
nd los
nd los
nd lossssss:::::
ofit and los
t of p
ofit a
nd los
PPPPPrrrrrofit o
ofit o
ofit o
r los
r los
r loss ses ses ses ses sectctctctctioioioioionnnnn
ofit or los
ofit o
r los
TTTTTaaaaax Ex
x Exx Expppppeeeeennnnnsesesesese:::::
x Exx Ex
a) Current tax
b) Adjustments in respect of current income tax of previous year
c) Deferred tax

r lossssss
r los
r los
ofit o
t of prrrrrofit o
ofit o
t of p
se rse reeeeepppppooooorrrrrttttteeeeed id id id id in tn tn tn tn the she she she she stttttaaaaattttteeeeemememememennnnnt of p
t of p
se rse r
IIIIIncncncncncooooome tme tme tme tme taaaaax exx exx exx exx expppppeeeeennnnnse r
ofit or los
r los
ofit o
t of p

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

774.67
31.76
144.15
---------------------------------------------------------
950.58
950.58
950.58
950.58
950.58
========================

1,278.10
193.01
111.90
---------------------------------------------------------
1,583.01
1,583.01
1,583.01
1,583.01
1,583.01
========================

120

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

OOOOOCCCCCI seI seI seI seI sectctctctctioioioioionnnnn
he yearrrrr:::::
he yea
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI dI dI dI dI duuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea

Net loss/(gain) on remeasurements of defined benefit plans
Income tax on items that will be reclassified subsequently
to statement of profit and loss

IIIIIncncncncncooooome tme tme tme tme taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo OCCCCCIIIII

OOOOOtttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititity Sy Sy Sy Sy Seeeeectctctctctioioioioionnnnn
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in Rn Rn Rn Rn Retetetetetaaaaaiiiiinenenenened Ed Ed Ed Ed Eaaaaarrrrrnnnnniiiiinnnnngggggsssss:::::

Implementation of Ind AS 116: Leases

NNNNNet aet aet aet aet amoumoumoumoumounnnnnt cht cht cht cht chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo Otttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititityyyyy

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

(69.11)
346.57

---------------------------------------------------------
277.46
277.46
277.46
277.46
277.46
========================

(71.93)
-

---------------------------------------------------------
(71.93)
(71.93)
(71.93)
(71.93)
(71.93)
========================

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

102.38
---------------------------------------------------------
102.38
102.38
102.38
102.38
102.38
========================

-
---------------------------------------------------------
-----
========================

ch 31, 2020
ch 31, 2020
ic taaaaax rx rx rx rx raaaaattttte foe foe foe foe for Mr Mr Mr Mr Maaaaarrrrrch 31, 2020
ic t
ic t
he accccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit mofit mofit mofit mofit muuuuullllltttttiiiiippppplllllieieieieied bd bd bd bd by Iy Iy Iy Iy Indndndndndiaiaiaiaia’’’’’s dos dos dos dos domesmesmesmesmestttttic t
he ac
he ac
n of taaaaax exx exx exx exx expppppeeeeennnnnse ase ase ase ase and tnd tnd tnd tnd the ac
n of t
n of t
(a)(a)(a)(a)(a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of t
ch 31, 2020
ch 31, 2020
ic t
he ac
n of t

ch 31, 2019.
ch 31, 2019.
aaaaand Mnd Mnd Mnd Mnd Maaaaarrrrrch 31, 2019.
ch 31, 2019.
ch 31, 2019.

Accounting profit before tax from continuing operations

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

3,123.41
---------------------------------------------------------

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

8,293.94
---------------------------------------------------------

ofit befoefoefoefoeforrrrre ie ie ie ie incncncncncooooome tme tme tme tme taaaaaxxxxx
ofit b
ofit b
AAAAAccccccccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit b
ofit b
At India’s statutory income tax rate of 34.944% (March 31, 2019: 34.944%)
Adjustments in respect of current income tax of previous years
TTTTTaaaaax effe
le) for tr tr tr tr taaaaax pux pux pux pux purprprprprposesosesosesosesoses:::::
le) fo
le/(tttttaaaaaxabxabxabxabxable) fo
le) fo
le/(
ich arrrrre Ne Ne Ne Ne Nooooonnnnn-----dedededededdddductuctuctuctuctibibibibible/(
le/(
ich a
ct of the ahe ahe ahe ahe amoumoumoumoumounnnnnttttts ws ws ws ws whhhhhich a
ich a
ct of t
ct of t
x effe
x effe
x effect of t
le) fo
le/(
ich a
ct of t
x effe
Expenses not deducted for tax purposes
Income exempted from Income taxes
Impact of tax at different tax rate and Others

At the income tax rate of 34.944% (March 31, 2019: 34.944 %)
Income tax expense reported in the statement of profit and loss

Variance

1,091.44
31.76

284.07
(143.83)
(312.85)
---------------------------------------------------------
950.58
950.58
---------------------------------------------------------
-

2,898.24
193.01

591.58
(684.86)
(1,414.78)
---------------------------------------------------------
1,583.19
1,583.01
---------------------------------------------------------
-

Pearl Global Industries Limited     Annual Report 2019-20

121

Notes
to consolidated financial statements for the year ended March 31, 2020

bbbbb))))) DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx:::::

DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
he fohe follllllololololowwwwwiiiiinnnnnggggg :::::
he fohe fo
Provision for employee benefits
Expenses allowed in the year of payment
Unaborsbed Losses
Lease Liability
Mark to Market Forward Contract
Others

he fohe follllllololololowwwwwiiiiinnnnnggggg :::::
he fohe fo
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
Property, plant and equipment
Right to use assets
Fair valuation of mutual fund
Borrowing (EIR)
Others

MAT Credit Entitlement

(A)

(B)

(C)

ies) (Net)et)et)et)et)
ies) (N
ies) (N
l deferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets/(s/(s/(s/(s/(llllliabiabiabiabiabilililililititititities) (N
l defe
l defe
TTTTTotototototaaaaal defe
ies) (N
l defe

(A-B+C)

Recognised Net Deferred Tax Assets
Recognised Net Deferred Tax Liabilities

se/incncncncncooooomememememe:::::
se/i
se/i
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax exx exx exx exx expppppeeeeennnnnse/i
se/i

he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g :
he fohe fo
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
Provision for employee benefits
Expenses allowed in the year of payment
Unaborsbed Losses
Lease Liability
Mark to Market Forward Contract
Others

(Amount in ` Lakh, unless otherwise stated)

e sheetetetetet
e she
BBBBBaaaaalllllaaaaancncncncnce she
e she
e she

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

535.44
197.90
17.07
1,065.71
346.57
137.91
---------------------------------------------------------
2,300.60
2,300.60
2,300.60
2,300.60
2,300.60
---------------------------------------------------------

1,439.94
913.56
7.93
8.46
197.55
---------------------------------------------------------
2,567.44
2,567.44
2,567.44
2,567.44
2,567.44
---------------------------------------------------------
106.14
---------------------------------------------------------
(160.70)
(160.70)
(160.70)
(160.70)
(160.70)
========================
87.61
87.61
87.61
87.61
87.61
(248.31)
(248.31)
(248.31)
(248.31)
(248.31)

489.60
134.25
543.17
-
-
79.02
---------------------------------------------------------
1,246.04
1,246.04
1,246.04
1,246.04
1,246.04
---------------------------------------------------------

1,424.05
-
-
9.23
315.29
---------------------------------------------------------
1,748.57
1,748.57
1,748.57
1,748.57
1,748.57
---------------------------------------------------------
266.07
---------------------------------------------------------
(236.46)
(236.46)
(236.46)
(236.46)
(236.46)
========================
104.00
104.00
104.00
104.00
104.00
(340.46)
(340.46)
(340.46)
(340.46)
(340.46)

(Amount in ` Lakh, unless otherwise stated)

SSSSStttttaaaaattttteeeeemememememennnnnt of p
nd lossssss
nd los
nd los
ofit a
t of prrrrrofit a
ofit a
t of p
t of p
ofit and los
nd los
ofit a
t of p
As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

45.84
63.65
(526.10)
1,065.71
346.57
58.89
---------------------------------------------------------
1,054.56

14.44
119.34
(199.40)
-
-
113.21
---------------------------------------------------------
47.59

122

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

se/incncncncncooooomememememe: : : : : (((((CCCCCooooonnnnntttttddddd.).).).).)
se/i
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax exx exx exx exx expppppeeeeennnnnse/i
se/i
se/i

DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g :
he fohe fo
Property, plant and equipment
Right of use assets
Fair valuation of mutual fund
Fair valuation of investment in ES
Borrowing (EIR)

et deferrrrrrrrrreeeeed td td td td taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeee
et defe
et defe
NNNNNet defe
et defe

Recognised in statement of profit and loss
Recognised in other comprehensive income
Recognised in Retained Earning - Implementation of Ind AS 116: Leases

(Amount in ` Lakh, unless otherwise stated)

SSSSStttttaaaaattttteeeeemememememennnnnt of p
nd lossssss
nd los
nd los
ofit a
t of prrrrrofit a
ofit a
t of p
t of p
ofit and los
nd los
ofit a
t of p
As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

15.89
913.56
7.93
(0.77)
(117.74)
---------------------------------------------------------
818.87
818.87
818.87
818.87
818.87
---------------------------------------------------------
(235.69)
(235.69)
(235.69)
(235.69)
(235.69)
========================
144.15
(277.46)
(102.38)

64.09
-
(33.84)
(2.57)
203.74
---------------------------------------------------------
231.42
231.42
231.42
231.42
231.42
---------------------------------------------------------
183.83
183.83
183.83
183.83
183.83
========================
111.90
71.93
-

c) The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority.

d) MAT paid can be carried forward for a period of 15 years and can be set off against the future tax liabilities. MAT is recognised
as a deferred tax asset only when the asset can be measured reliably and it is probable that the future economic benefit
associated with the asset will be realised.

E 13 : NON CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX AX AX AX AX ASSSSSSSSSSEEEEETTTTT
E 13 : NO
E 13 : NO
NONONONONOTTTTTE 13 : NO
E 13 : NO

Advance income tax
(Net of provision of ` 1,288.03 lakh (March 31, 2019 : ` 1,032.42 lakh)

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

763.99

452.22

---------------------------------------------------------
763.99
763.99
763.99
763.99
763.99
========================

---------------------------------------------------------
452.22
452.22
452.22
452.22
452.22
========================

E 14 : OTHHHHHEEEEER AR AR AR AR ASSSSSSSSSSEEEEETSTSTSTSTS
E 14 : OT
NONONONONOTTTTTE 14 : OT
E 14 : OT
E 14 : OT

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

(Unsecured, considered good, unless otherwise stated)
Capital advances(Refer note no. 46(b) for capital commitments)
Balance with government authorities
Balance with government authorities - considered doubtful
Less: Loss allowance
Prepaid expenses
Export incentive receivable
Advances to related parties (Refer note no. 47)
Advances to suppliers
Other receivables

TTTTTotototototaaaaal (l (l (l (l (AAAAA)))))

255.20
91.80
22.74
(22.74)
425.82
-
-
-
-
----------------------------------------------------------
772.82
772.82
772.82
772.82
772.82
========================

204.44
128.86
22.74
(22.74)
985.26
-
-
-
35.89
----------------------------------------------------------
1,354.45
1,354.45
1,354.45
1,354.45
1,354.45
========================

-
1,736.80
-
-
903.92
2,413.44
-
1,423.09
2,493.12
----------------------------------------------------------
8,970.37
8,970.37
8,970.37
8,970.37
8,970.37
========================

-
1,593.89
-
-
767.10
1,817.61
4.29
1,109.86
1,096.80
----------------------------------------------------------
6,389.55
6,389.55
6,389.55
6,389.55
6,389.55
========================

Pearl Global Industries Limited     Annual Report 2019-20

123

Notes
to consolidated financial statements for the year ended March 31, 2020

E 15 : INVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEESSSSS
E 15 : IN
NONONONONOTTTTTE 15 : IN
E 15 : IN
E 15 : IN

Raw materials
Good in transit- raw material
Work in progress
Finished goods
Scrap Stock
Stores spares & others

Less: Writedown of inventories

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
12,245.71
54.44
12,212.16
1,635.43
33.21
230.72
---------------------------------------------------------
26,411.67
26,411.67
26,411.67
26,411.67
26,411.67
(24.34)
---------------------------------------------------------
26,387.33
26,387.33
26,387.33
26,387.33
26,387.33
========================

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
10,669.98
39.91
10,652.01
2,124.30
111.08
34.89
---------------------------------------------------------
23,632.17
23,632.17
23,632.17
23,632.17
23,632.17
-
---------------------------------------------------------
23,632.17
23,632.17
23,632.17
23,632.17
23,632.17
========================

(a) For information on inventories pledged as security by the group (refer note 21).

(b) Inventories amounting to ` 1,507.80 (March 2019: ` 1,391.00) are used as collateral for part of the bank facilities. - In case

of Pearl Global HK Limited.

E 16 : TRAAAAADDDDDE RE RE RE RE RECECECECECEEEEEIIIIIVVVVVAAAAABBBBBLLLLLEEEEESSSSS
E 16 : TR
E 16 : TR
NONONONONOTTTTTE 16 : TR
E 16 : TR

Considered good - secured
Considered good - unsecured
Trade receivables which have significant increase in credit risk
Trade receivables - credit impaired
Less: Loss allowance

TTTTTotototototaaaaalllll

s is as fos fos fos fos follllllololololowswswswsws:::::
s is a
s is a
l debt
l debt
nd doubtfffffuuuuul debt
nd doubt
nd doubt
ad aad a
ad a
he moveeeeemememememennnnnt it it it it in an an an an allllllololololowwwwwaaaaancncncncnce foe foe foe foe for br br br br bad a
he mov
he mov
a)a)a)a)a) TTTTThe mov
l debts is a
ad and doubt
s is a
l debt
nd doubt
he mov

he yearrrrr
he yea
he yea
g of t
g of t
BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at bt bt bt bt beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t
Loss Allowance during the year
Trade receivables written off / written back during the year

he yearrrrr
he yea
he yea
nd of t
BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at tt tt tt tt the ehe ehe ehe ehe end of t
nd of t
nd of the yea
he yea
nd of t

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

-
22,042.47
-
377.33
(377.33)
---------------------------------------------------------
22,042.47
22,042.47
22,042.47
22,042.47
22,042.47
---------------------------------------------------------

374.33
2.99
-
---------------------------------------------------------
377.33
========================

-
22,177.86
-
374.33
(374.33)
---------------------------------------------------------
22,177.86
22,177.86
22,177.86
22,177.86
22,177.86
---------------------------------------------------------

5.15
369.18
-
---------------------------------------------------------
374.33
========================

b) Trade receivables are non-interest bearing and are generally on terms of 45 - 60 days.

c) The Group exposure to credit and currency risk, and loss allowances related to trade receivables are disclosed in note 44.

E 17 : CASSSSSH AH AH AH AH ANNNNND CD CD CD CD CAAAAASSSSSH EQH EQH EQH EQH EQUUUUUIIIIIVVVVVAAAAALLLLLEEEEENNNNNTSTSTSTSTS
E 17 : CA
NONONONONOTTTTTE 17 : CA
E 17 : CA
E 17 : CA

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Balances with banks:
Current account
-
- Deposits with original maturity of less than 3 months (refer note (a))
Cash on hand
Cheque/drafts on hand

8,062.59
139.70
47.04
559.56
---------------------------------------------------------
8,808.89
8,808.89
8,808.89
8,808.89
8,808.89
========================
For the purpose of the statement of cash flow, the cash and cash equivalent are same given above.

a)

7,156.93
949.52
85.39
1,242.28
---------------------------------------------------------
9,434.12
9,434.12
9,434.12
9,434.12
9,434.12
========================

124

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

E 18 : OTHHHHHEEEEER BR BR BR BR BAAAAANNNNNK BK BK BK BK BAAAAALLLLLAAAAANNNNNCCCCCEEEEESSSSS
E 18 : OT
NONONONONOTTTTTE 18 : OT
E 18 : OT
E 18 : OT

Earmarked balances with banks
Unpaid dividend account
Deposits with original maturity of more
than 3 months but less than 12 months

Deposits with original maturity of more than 12 months
Balance with bank (Considered doubtful)
Less: Loss allowance

Less: Amount disclosed under “other financial assets”
(Refer Note No. 11)

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

-
-

-
-

31.85
2,136.98

26.83
1,680.88

265.11
-
-
----------------------------------------------------------
265.11
265.11
265.11
265.11
265.11
265.11

452.48
-
-
----------------------------------------------------------
452.48
452.48
452.48
452.48
452.48
452.48

-
0.03
(0.03)
----------------------------------------------------------
2,168.83
2,168.83
2,168.83
2,168.83
2,168.83
-

761.27
0.03
(0.03)
----------------------------------------------------------
2,468.98
2,468.98
2,468.98
2,468.98
2,468.98
761.27

----------------------------------------------------------
-
========================

----------------------------------------------------------
-
========================

----------------------------------------------------------
2,168.83
========================

----------------------------------------------------------
1,707.71
========================

a) Out of the total Fixed Deposits, the fixed deposit with carrying value of ` 1,041.21 lakh (March 31, 2019 ` 2,994.13 lakh)

are pledged as security with various banks.

E 19 : SHAAAAARRRRRE CAE CAE CAE CAE CAPPPPPIIIIITTTTTAAAAALLLLL
E 19 : SH
E 19 : SH
NONONONONOTTTTTE 19 : SH
E 19 : SH

AAAAAuuuuuttttthohohohohorrrrriseiseiseiseiseddddd
51,440,000* (March 31, 2019: 51,440,000) equity shares of ` 10 each
10,000* (March 31, 2019: 10,000) 4% Non Cumulative Redeemable
Preference Shares of ` 10 each
3,256,000* (March 31, 2019: 3,256,000) 10.5% Non Cumulative
Redeemable Preference Shares of ` 100 each

IIIIIssssssssssueueueueueddddd, s, s, s, s, subscubscubscubscubscrrrrribibibibibeeeeed ad ad ad ad and pnd pnd pnd pnd paaaaaid uid uid uid uid uppppp
21,663,937* (March 31, 2019: 21,663,937) Equity Shares
of ` 10 each fully paid up

* Number of Shares are given in absolute numbers.

n of issssssueueueueued ad ad ad ad and snd snd snd snd subscubscubscubscubscrrrrribibibibibeeeeed shd shd shd shd shaaaaarrrrre ce ce ce ce caaaaapppppitititititaaaaal al al al al as as as as as at yea
a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of is
t year er er er er end :nd :nd :nd :nd :
t yea
t yea
n of is
n of is
t yea
n of is
e of ````` 10 each is
 10 each issssssueueueueueddddd, S, S, S, S, Subscubscubscubscubscrrrrribibibibibeeeeed ad ad ad ad and fnd fnd fnd fnd fuuuuulllllly ply ply ply ply paaaaaididididid
 10 each is
 10 each is
EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre of 
e of 
e of 
 10 each is
e of 

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 1, 2018
il 1, 2018
il 1, 2018
il 1, 2018
il 1, 2018
Changes during the year

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Changes during the year

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

5,144.00
1.00

3,256.00

5,144.00
1.00

3,256.00

---------------------------------------------------------
8,401.00
8,401.00
8,401.00
8,401.00
8,401.00
---------------------------------------------------------

---------------------------------------------------------
8,401.00
8,401.00
8,401.00
8,401.00
8,401.00
---------------------------------------------------------

2,166.39

2,166.39

---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
========================

. of shaaaaarrrrreseseseses
. of sh
NNNNNooooo. of sh
. of sh
. of sh
(((((iiiiin ‘n ‘n ‘n ‘n ‘lllllaaaaakkkkkhhhhh’)’)’)’)’)
---------------------------------------------------------
216.639
-
---------------------------------------------------------
216.639
216.639
216.639
216.639
216.639
---------------------------------------------------------
-
---------------------------------------------------------
216.639
216.639
216.639
216.639
216.639
---------------------------------------------------------

---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
========================

AAAAAmoumoumoumoumounnnnnttttt
 ( ( ( ( (````` i i i i in ln ln ln ln laaaaakkkkkhhhhh)))))
---------------------------------------------------------
2,166.39
-
---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
---------------------------------------------------------
-
---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
---------------------------------------------------------

Pearl Global Industries Limited     Annual Report 2019-20

125

Notes
to consolidated financial statements for the year ended March 31, 2020

ached td td td td to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses:::::
ache
s/ rigigigigighhhhhttttts as as as as attttttttttache
ache
s/ rs/ r
s/ r
bbbbb))))) TTTTTeeeeerrrrrmmmmms/ r
ache

The Group has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to
one vote per share. The Group declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the
Group, the holders of equity shares will be entitled to receive remaining assets of the Group, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. For the year ended
March 31, 2020, the Board of Directors has not proposed any dividend for distribution to shareholders. For the year ended
March 31, 2019, the amount of per share dividend proposed as distribution to equity shareholders was ` 3.00 per share.

n 5% shaaaaarrrrreseseseses
n 5% sh
n 5% sh
g morrrrre te te te te thhhhhaaaaan 5% sh
g mo
rs holdldldldldiiiiinnnnng mo
g mo
rs ho
ils of shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ho
rs ho
ils of sh
ils of sh
ccccc))))) DDDDDetetetetetaaaaails of sh
n 5% sh
g mo
rs ho
ils of sh

me of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelderrrrr
me of Sh
me of Sh
NNNNNaaaaame of Sh
me of Sh

Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mr. Sanjiv Dhireshbhai shah

TTTTTotototototaaaaalllll

E 20 : OTHHHHHEEEEER EQR EQR EQR EQR EQUUUUUIIIIITTTTTYYYYY
E 20 : OT
E 20 : OT
NONONONONOTTTTTE 20 : OT
E 20 : OT

General Reserve
Securities Premium
Capital Redemption Reserve
Amalgamation Reserve
Foreign Currency Translation Reserve
Change in investment through other comprehensive income
Retained Earnings
Cash Flow Hedge Reserve

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
. of shaaaaarrrrreseseseses
. of sh
. of sh
NNNNNooooo. of sh
. of sh

. of shaaaaarrrrreseseseses
. of sh
. of sh
HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % NNNNNooooo. of sh
. of sh

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

4,413,635
2,862,145
6,947,621
1,553,274
----------------------------------------------------------
15,776,675
15,776,675
15,776,675
15,776,675
15,776,675
========================

20.37
13.21
32.07
7.17
----------------------------------------------------------
72.82
72.82
72.82
72.82
72.82
========================

4,413,635
2,862,145
6,947,621
-
----------------------------------------------------------
14,223,401
14,223,401
14,223,401
14,223,401
14,223,401
========================

HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g %

20.37
13.21
32.07
-
----------------------------------------------------------
65.65
65.65
65.65
65.65
65.65
========================

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

4,204.36
17,103.90
95.00
625.95
4,623.26
(105.34)
21,989.10
(645.23)
---------------------------------------------------------
47,891.00
47,891.00
47,891.00
47,891.00
47,891.00
========================

4,204.36
17,103.90
95.00
625.95
2,036.96
(67.05)
20,821.23
-
---------------------------------------------------------
44,820.35
44,820.35
44,820.35
44,820.35
44,820.35
========================

I.

For Movement during the period in Other Equity, refer “Statement of Changes in Equity”.

ose of reseeseeseeseeserrrrrvvvvveseseseses
ose of r
nd purprprprprpose of r
ose of r
nd pu
IIIIII.I.I.I.I. NNNNNaaaaatttttuuuuurrrrre ae ae ae ae and pu
nd pu
ose of r
nd pu

a)a)a)a)a) GGGGGeeeeenenenenenerrrrraaaaal rl rl rl rl reseeseeseeseeserrrrrvvvvveeeee

The Group has transferred a portion of the net profit of the Group before declaring dividend to general reserve pursuant
to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the
Companies Act, 2013.

bbbbb)))))

SSSSSeeeeecucucucucurrrrrititititities p
ies prrrrreeeeemmmmmiuiuiuiuiummmmm
ies pies p
ies p
The amount received in excess of face value of the equity shares is recognised in securities premium. The reserve will be
utilised in accordance with the provisions of the Companies Act, 2013.

ccccc))))) CCCCCaaaaapppppitititititaaaaal rl rl rl rl reeeeedededededemmmmmptptptptptioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee

This Reserve has been created at the time of merger of other companies in earlier years in accordance with the provisions
of the Companies Act, 2013.

ddddd))))) AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee

This Reserve has been created at the time of merger of other companies in earlier years in accordance with the provisions
of the Companies Act, 2013.

126

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

e)e)e)e)e) FFFFFooooorrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy ty ty ty ty trrrrraaaaannnnnslslslslslaaaaatttttioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee

Foreign currency translation reserve is created on translation of financial statements of non integral foreign operation
at the reporting date.

fffff ))))) RRRRRetetetetetaaaaaiiiiinenenenened ead ead ead ead earrrrrnnnnniiiiinnnnngggggsssss

Retained earnings are the profits that the Group has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders. Out of the above, reserve on account of revaluation of assets of ` 398.64 lakh
(March 31, 2019 ` 396.76 lakh) is not available for distribution.

ggggg ))))) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee

This reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated
portion of hedging instruments entered into for cash flow hedges. This reserve will be reclassified to statement of profit
and loss only when the hedged transaction affects the profit or loss.

E 21 : LONNNNNG TEG TEG TEG TEG TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS
E 21 : LO
E 21 : LO
NONONONONOTTTTTE 21 : LO
E 21 : LO

From Banks (Secured)
Corporate Loan [Refer Note a(i), a(ii), a(iii), a(iv) & a(v)]
-
-
Vehicle Loans [Refer Note a(vi)]
From Financials Institutional (Secured)
-
Vehicle Loans [Refer Note a(vi)]
From others - unsecured

Less: Amount disclosed under other financial liabilities as
‘Current maturities of long-term borrowings’(refer note 22)

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

9,695.14
93.22

7,819.91
48.93

2,639.35
91.00

1,560.70
81.29

112.39
82.93
----------------------------------------------------------
9,983.68
9,983.68
9,983.68
9,983.68
9,983.68
-

106.50
131.42
----------------------------------------------------------
8,106.76
8,106.76
8,106.76
8,106.76
8,106.76
-

38.85
-
----------------------------------------------------------
2,769.20
2,769.20
2,769.20
2,769.20
2,769.20
2,769.20

38.90
-
----------------------------------------------------------
1,680.89
1,680.89
1,680.89
1,680.89
1,680.89
1,680.89

----------------------------------------------------------
9,983.68
9,983.68
9,983.68
9,983.68
9,983.68
========================

----------------------------------------------------------
8,106.76
8,106.76
8,106.76
8,106.76
8,106.76
========================

----------------------------------------------------------
-----
========================

----------------------------------------------------------
-----
========================

e of Seeeeecucucucucurrrrrititititity foy foy foy foy for Sr Sr Sr Sr Seeeeecucucucucurrrrreeeeed Ld Ld Ld Ld Loooooaaaaannnnns as as as as arrrrre :e :e :e :e :
e of S
a)a)a)a)a) TTTTThe nhe nhe nhe nhe naaaaatttttuuuuurrrrre of S
e of S
e of S

i) Corporate Term Loan (Kotak Bank) is secured by charge first and exclusive charge over fixed assets and plant and

machinery.

ii) Corporate  Term  Loan  (Andhra  Bank)  is  secured  by  first  and  exclusive  charge  on  the  entire  fixed  assets  including
machineries, land and building at Chennai and Bangalore Plant of the Company. In addition, Equitable Mortgage of
Land & Building located at Survey No- 262A in Aryapakkam Village at Kancheepuram measuring 4.8053 acre in
Company’s name.

iii) Corporate Term Loan (HDFC Bank) is secured by exclusive charge over movable fixed aseets of the Company, both
present and future. The loan is also secured by personal guarantee of one of the Promoter Director of the Company and
exclusive charge by way of equitable mortagage on industrial plot no.446, Udyog Vihar, Phase- V, Gurugram, Haryana.
iv) Corporate Term Loan (IndusInd Bank) is secured by exclusive charge over movable fixed aseets of the Company, both
present and future. The loan is secured by exclusive charge by way of equitable mortagage on industrial Plot no.51,
Sector-32, Gurugram, Haryana.

v) Corporate Term Loan (RBL Bank) is secured by exclusive charge over movable fixed aseets of the Company, both
present and future. The loan is secured by exclusive charge by way of equitable mortagage on Industrial Plot no.751,
Pace City,  Sector-37, Gurugram, Haryana.

vi) BDT Term Loan from HSBC in case of Norp Knit Industries Limited) are secured by first charge over Company’s
plant & machinery, stocks of raw material, wip, finished goods, book debts & receivables, charge over deposits & stand
by letter of credit from Holding Company.

Pearl Global Industries Limited     Annual Report 2019-20

127

Notes
to consolidated financial statements for the year ended March 31, 2020

vii) The loan facilities (in case Pearl Global (HK) Limited) are secured by the Group’s leasehold land & buildings, machineries

and equipment, inventories, trade receivables together with director’s personal guarantee.

viii) Vehicle loans are secured against hypothecation of respective vehicles.

ofileofile
bbbbb))))) MMMMMaaaaatttttuuuuurrrrrititititity Py Py Py Py Prrrrrofile
ofileofile

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of se
ofile of secucucucucurrrrreeeeed td td td td teeeeerrrrrm lom lom lom lom loaaaaannnnnsssss
ofile of se
ofile of se
ofile of se
s set out bt bt bt bt beloeloeloeloelow :w :w :w :w :
s set ou
s set ou
is ais ais ais ais as set ou
s set ou
Term loan from Banks and Financial Institution are
repayable in monthly/quarterly/yearly installments
Vehicle loans from banks and financial institutions
are repayable in monthly installments

2020-21
2020-21
2020-21
2020-21
2020-21

2021-22
2021-22
2021-22
2021-22
2021-22

2022-23
2022-23
2022-23
2022-23
2022-23

BBBBBeeeeeyoyoyoyoyondndndndnd
2023-24
2023-24
2023-24
2023-24
2023-24

2,639.35

2,965.91

2,364.78

4,364.45

129.85

64.75

77.35

63.52

c) The term loan(s) carries rate of interest ranging between 9.75% to 12.00% per annum.

E 21A : SHOOOOORRRRRT TET TET TET TET TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS
E 21A : SH
E 21A : SH
NONONONONOTTTTTE 21A : SH
E 21A : SH

Working capital loan from banks(secured)
Rupee loan [refer note (a) above]
-

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

25,715.32
---------------------------------------------------------
25,715.32
25,715.32
25,715.32
25,715.32
25,715.32
========================

23,486.07
---------------------------------------------------------
23,486.07
23,486.07
23,486.07
23,486.07
23,486.07
========================

a) The nature of Security for short term borrowings are as under:

-

First pari-passu charge on movable fixed assets and whole of current assets including stocks of raw material, semi finished
goods, finished goods, book debts, consumable stores and spares.

- Mortgage of the properties situated at Plot No. H -597-603, RICCO Industrial Area, Bhiwadi, Distt. Alwar, Rajasthan

and Plot No 16-17, Phase VI, Udyog Vihar,Gurgoan (Haryana).

-

-

Fixed Deposit of ` 58 lakh (March 31, 2019: ` 58 lakh)

Personal Guarantee by the promoter director of the Company.

(Amount in ` Lakh, unless otherwise stated)

E 22 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL LL LL LL LL LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS
E 22 : OT
NONONONONOTTTTTE 22 : OT
E 22 : OT
E 22 : OT

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

Security deposit
Book overdraft
Current maturities of long-term borrowings (refer no. 21)
Interest accrued but not due on borrowings
Unpaid dividends (Refer Note b)
Creditors for capital goods
Financial Liabilites at Fair Value through OCI-Cash Flow Hedge
Others

246.97
-
-
-
-
-
-
-
----------------------------------------------------------
246.97
246.97
246.97
246.97
246.97
========================

222.00
-
-
-
-
-
-
-
----------------------------------------------------------
222.00
222.00
222.00
222.00
222.00
========================

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

-
26.87
2,769.20
37.48
31.85
30.21
991.80
1,830.22
----------------------------------------------------------
5,717.63
5,717.63
5,717.63
5,717.63
5,717.63
========================

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

-
150.48
1,680.89
24.67
26.83
849.25
-
2,424.77
----------------------------------------------------------
5,156.89
5,156.89
5,156.89
5,156.89
5,156.89
========================

128

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

NNNNNotototototeseseseses:::::

a) The Group’s exposure to market and liquidity risk related to other financial liabilities is disclosed in note 44.

b) There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of the Companies

Act, 2013 as at the year end.

E 23 : PROVOVOVOVOVIIIIISSSSSIIIIIOOOOONSNSNSNSNS
E 23 : PR
NONONONONOTTTTTE 23 : PR
E 23 : PR
E 23 : PR

nefitsssss
nefit
nefit
PPPPPrrrrrovovovovovisioisioisioisioision fon fon fon fon for er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit
nefit
Provision for compensated absenses (refer to note 39)
Provision for gratuity (refer to note 39)
Other employee benefits

E 24 : OTHHHHHEEEEER LR LR LR LR LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS
E 24 : OT
E 24 : OT
NONONONONOTTTTTE 24 : OT
E 24 : OT

Advance received against sale of land
Deferred government grant
Deferred rental income
Statutory dues
Others

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

554.06
1,456.54
69.12
----------------------------------------------------------
2,079.72
2,079.72
2,079.72
2,079.72
2,079.72
========================

717.04
1,345.94
49.62
----------------------------------------------------------
2,112.60
2,112.60
2,112.60
2,112.60
2,112.60
========================

23.96
44.44
-
----------------------------------------------------------
68.40
68.40
68.40
68.40
68.40
========================

23.02
58.65
-
----------------------------------------------------------
81.67
81.67
81.67
81.67
81.67
========================

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

2,963.62
8.58
25.71
-
-
----------------------------------------------------------
2,997.91
2,997.91
2,997.91
2,997.91
2,997.91
========================

3,010.49
9.58
56.89
-
232.67
----------------------------------------------------------
3,309.63
3,309.63
3,309.63
3,309.63
3,309.63
========================

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

-
145.61
31.92
632.95
46.87
----------------------------------------------------------
857.35
857.35
857.35
857.35
857.35
========================

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

-
145.61
32.57
678.55
9.93
----------------------------------------------------------
866.66
866.66
866.66
866.66
866.66
========================

E 25 : TRAAAAADDDDDE PE PE PE PE PAAAAAYYYYYAAAAABBBBBLLLLLEEEEE
E 25 : TR
NONONONONOTTTTTE 25 : TR
E 25 : TR
E 25 : TR

Total outstanding dues of micro and small enterprises
Total outstanding dues of creditors other than micro and small enterprises

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

331.05
17,775.62
---------------------------------------------------------
18,106.67
18,106.67
18,106.67
18,106.67
18,106.67
========================

63.70
18,042.77
---------------------------------------------------------
18,106.47
18,106.47
18,106.47
18,106.47
18,106.47
========================

a) Trade payable are generally on a credit of not more than 90 days except in case of Micro & Small Enterprises which are

settled within 45 days.

b) This amount includes amount due to related parties is ` 0.92 lakh (March 31, 2019: ` 16.85 lakh) (refer note 47)

c) As per Schedule III of the Companies Act, 2013 and notification number GSR 719 (E) dated November 16, 2007 & as
certified  by  the  Management,  the  amount  due  to  Micro  &  Small  Enterprises  as  defined  in  Micro,  Small  and  Medium
Enterprises Development Act, 2006 is as under :

Pearl Global Industries Limited     Annual Report 2019-20

129

Notes
to consolidated financial statements for the year ended March 31, 2020

ct,  2006  arrrrre  ie  ie  ie  ie  inclnclnclnclncludeudeudeudeuded  id  id  id  id  in  tn  tn  tn  tn  the  the  the  the  the  trrrrradeadeadeadeade
ct,  2006  a
s  definenenenened  ud  ud  ud  ud  undendendendender  Mr  Mr  Mr  Mr  MSSSSSMMMMMEEEEED  AD  AD  AD  AD  Act,  2006  a
ct,  2006  a
s  defi
s  defi
ises  a
ues  to  Mo  Mo  Mo  Mo  Micicicicicrrrrro  ao  ao  ao  ao  and  Snd  Snd  Snd  Snd  Smmmmmaaaaallllll  El  El  El  El  Ennnnnttttteeeeerprprprprprrrrrises  a
ises  a
ues  t
ues  t
ils  of  d
DDDDDetetetetetaaaaails  of  d
ils  of  d
ises  as  defi
ils  of  dues  t
ct,  2006  a
s  defi
ises  a
ues  t
ils  of  d
t Grouououououp abp abp abp abp abovovovovoveeeee:::::
t Gr
pppppaaaaayyyyyababababable ale ale ale ale at Gr
t Gr
t Gr

(i) The amount due thereon remaining unpaid to any supplier at the end of each accounting year

-
-

Principal
Interest

(ii) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and
Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the
payment made to the supplier beyond the appointed day during each accounting year.
(iii) The amount of interest due and payable for the period of delay in making payment (which
has been paid but beyond the appointed day during the year) but without adding the
interest specified under the Micro, Small and Medium Enterprises Development Act, 2006.

(iv) The amount of interest accrued and remaining unpaid at the end of each accounting year
(v) The amount of further interest remaining due and payable even in the succeeding year, until
such date when the interest dues as above are actually paid to the small enterprise for the
purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act 2006

331.05
-
-

-

-
-

63.70
-
-

-

-
-

d) Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is
based on the information available with the Group regarding the status of registration of such vendors under the said Act
and as per the intimation received from them on requests made by the Group. There are no overdue principal amounts /
interest payable amounts for delayed payments to such vendors at the Balance Sheet date except disclosed above.

e) The Group’s exposure to market and liquidity risk related to trade payables is disclosed in note 44.

E 26 : LIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES FS FS FS FS FOOOOOR CUR CUR CUR CUR CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX (NX (NX (NX (NX (NEEEEETTTTT)))))
E 26 : LI
E 26 : LI
NONONONONOTTTTTE 26 : LI
E 26 : LI

Provision for income tax (Net of advance tax ` 717.45 lakh
(March 31, 2019 ` 1,053.97 lakh))

E 27 : REVVVVVEEEEENNNNNUUUUUE FRE FRE FRE FRE FROOOOOM OM OM OM OM OPPPPPEEEEERRRRRAAAAATTTTTIIIIIOOOOONSNSNSNSNS
E 27 : RE
NONONONONOTTTTTE 27 : RE
E 27 : RE
E 27 : RE

Sale of Product
Job Receipts
Other Operating Revenues

ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss
ue frue fr
RRRRReeeeevvvvveeeeennnnnue fr

a)a)a)a)a) PPPPPeeeeerforforforforforrrrrmmmmmaaaaancncncncnce oe oe oe oe obbbbbllllligigigigigaaaaatttttioioioioionnnnn

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

57.23

224.13

---------------------------------------------------------
57.23
57.23
57.23
57.23
57.23
========================

---------------------------------------------------------
224.13
224.13
224.13
224.13
224.13
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

163,325.79
129.54
5,057.25
---------------------------------------------------------
168,512.58
168,512.58
168,512.58
168,512.58
168,512.58
========================

170,770.02
66.57
4,913.19
---------------------------------------------------------
175,749.78
175,749.78
175,749.78
175,749.78
175,749.78
========================

Revenue is recognised upon transfer of control of products and customers.

During the year, The Group has not entered into long term contracts with Customers and accordingly disclsoure of unsatisfied
or  remaining  performance  obligation  (which  is  affected  by  several  factors  like  changes  in  scope  of  Contracts,  periodic
revalidations, adjustment for revenue that has not been materialized, tax laws etc.) is not applicable to the Group.

130

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

b) Disaggregation of revenue: The table below presents disaggregated revenues from contracts with customers on the basis of
geographical  spread  of  the  operations  of  the  Group.  The  Group  believes  that  this  disaggregation  best  depicts  how  the
nature, amount of revenues and cash flows are affected by market and other economic factors:

RRRRReeeeevvvvveeeeennnnnue bue bue bue bue baaaaasesesesesed od od od od on Gn Gn Gn Gn Geeeeeooooogggggrrrrraaaaappppphhhhhyyyyy

India
Outside India

ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss
ue frue fr
RRRRReeeeevvvvveeeeennnnnue fr

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

8,403.09
160,109.49
---------------------------------------------------------
168,512.58
168,512.58
168,512.58
168,512.58
168,512.58
========================

6,019.11
169,730.67
---------------------------------------------------------
175,749.78
175,749.78
175,749.78
175,749.78
175,749.78
========================

ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnns ws ws ws ws wititititith ch ch ch ch cooooonnnnntttttrrrrractactactactacteeeeed pd pd pd pd prrrrriciciciciceeeee
ue frue fr
n of reeeeevvvvveeeeennnnnue fr
n of r
n of r
ccccc))))) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of r
n of r

(Amount in ` Lakh, unless otherwise stated)

Contracted Price
Less:
Sales Returns
Rebates and discounts

E 28 : OTHHHHHEEEEER IR IR IR IR INNNNNCCCCCOOOOOMMMMMEEEEE
E 28 : OT
E 28 : OT
NONONONONOTTTTTE 28 : OT
E 28 : OT

Interest income
- On Fixed deposits
- On loans and advances
- On income tax refund
Other non-operating income:
Rental income
Foreign exchange fluctuation
Provision for doubtful debt & advances written back
Amortisation of deferred rental income
Profit on sale of current investment - mutual fund
Profit on mark to market forward contracts
Fair value gain on investments measured at
fair value through profit and loss (net)
Miscellaneous income

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

168,557.47

175,759.55

44.89
-
---------------------------------------------------------
168,512.58
168,512.58
168,512.58
168,512.58
168,512.58
========================

9.67
0.10
---------------------------------------------------------
175,749.78
175,749.78
175,749.78
175,749.78
175,749.78
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

967.85
174.64
0.16

980.53
1,700.72
-
32.08
73.79
-
29.41

750.51
156.55
-

814.53
715.64
37.87
31.67
218.20
247.24
-

946.31
---------------------------------------------------------
4,905.49
4,905.49
4,905.49
4,905.49
4,905.49
========================

420.61
---------------------------------------------------------
3,392.82
3,392.82
3,392.82
3,392.82
3,392.82
========================

Pearl Global Industries Limited     Annual Report 2019-20

131

Notes
to consolidated financial statements for the year ended March 31, 2020

E 29 : COSSSSST OT OT OT OT OF RF RF RF RF RAAAAAW MW MW MW MW MAAAAATTTTTEEEEERRRRRIIIIIAAAAAL CL CL CL CL COOOOONSNSNSNSNSUUUUUMMMMMEEEEEDDDDD
E 29 : CO
NONONONONOTTTTTE 29 : CO
E 29 : CO
E 29 : CO

RRRRRaaaaaw Mw Mw Mw Mw Maaaaattttteeeeerrrrriaiaiaiaialllll
Balance at the beginning of the Year
Add:- Purchases during the year
Add: Impact of exchange fluctuation & re-instatement

Less:- Balance at the end of the Year

Total Raw Material Consumption

E 30 : PURRRRRCCCCCHHHHHAAAAASSSSSE OE OE OE OE OF SF SF SF SF STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE
E 30 : PU
E 30 : PU
NONONONONOTTTTTE 30 : PU
E 30 : PU

Purchases during the year

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

10,669.98
77,404.20
374.97
---------------------------------------------------------
88,449.15
12,245.71
---------------------------------------------------------
76,203.44
76,203.44
76,203.44
76,203.44
76,203.44
========================

10,189.10
76,378.27
323.18
---------------------------------------------------------
86,890.55
10,669.98
---------------------------------------------------------
76,220.57
76,220.57
76,220.57
76,220.57
76,220.57
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

5,210.29
---------------------------------------------------------
5,210.29
5,210.29
5,210.29
5,210.29
5,210.29
========================

12,954.77
---------------------------------------------------------
12,954.77
12,954.77
12,954.77
12,954.77
12,954.77
========================

(Amount in ` Lakh, unless otherwise stated)

E 31 :CHCHCHCHCHAAAAANNNNNGGGGGEEEEES IS IS IS IS IN IN IN IN IN INNNNNVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEES OS OS OS OS OF FIF FIF FIF FIF FINNNNNIIIIISSSSSHHHHHEEEEED GD GD GD GD GOOOOOOOOOODDDDDSSSSS,,,,,
E 31 :
E 31 :
NONONONONOTTTTTE 31 :
E 31 :
 W W W W WOOOOORRRRRK IK IK IK IK IN PN PN PN PN PRRRRROOOOOGGGGGRRRRREEEEESSSSSS AS AS AS AS ANNNNND SD SD SD SD STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

he yearrrrr
he yea
he yea
g of t
g of t
ies at tt tt tt tt the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
ies a
ies a
IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a
g of the yea
he yea
g of t
ies a
Work-in-progress
Finished goods
Scrap Stock
Add: Impact of exchange fluctuation & re-instatement(Net)

IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a
he yearrrrr
he yea
he yea
nd of t
ies at tt tt tt tt the ehe ehe ehe ehe end of t
nd of t
ies a
ies a
nd of the yea
he yea
nd of t
ies a
Work-in-progress
Finished goods
Scrap Stock

se in in in in in innnnnvvvvveeeeennnnntttttooooorrrrry (y (y (y (y (A-A-A-A-A-B)B)B)B)B)
se i
se) / decccccrrrrreaeaeaeaease i
se i
se) / de
(I(I(I(I(Incncncncncrrrrreaeaeaeaease) / de
se) / de
se i
se) / de

(((((AAAAA)))))

(B)(B)
(B)(B)
(B)

10,652.01
2,124.30
111.08
386.27
---------------------------------------------------------
13,273.67
13,273.67
13,273.67
13,273.67
13,273.67
---------------------------------------------------------

12,212.17
1,611.09
33.21
---------------------------------------------------------
13,856.47
13,856.47
13,856.47
13,856.47
13,856.47
---------------------------------------------------------
(582.80)
(582.80)
(582.80)
(582.80)
(582.80)
========================

6,299.74
4,002.41
286.67
457.57
---------------------------------------------------------
11,046.39
11,046.39
11,046.39
11,046.39
11,046.39
---------------------------------------------------------

10,652.01
2,124.30
111.08
---------------------------------------------------------
12,887.39
12,887.39
12,887.39
12,887.39
12,887.39
---------------------------------------------------------
(1,841.00)
(1,841.00)
(1,841.00)
(1,841.00)
(1,841.00)
========================

132

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

E 32 : EMPPPPPLLLLLOOOOOYYYYYEEEEEE BE BE BE BE BEEEEENNNNNEEEEEFIFIFIFIFITS ETS ETS ETS ETS EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE
E 32 : EM
NONONONONOTTTTTE 32 : EM
E 32 : EM
E 32 : EM

Salaries, Wages & Bonus
Contribution to Provident and Other fund
Gratuity expense (refer note 39)
Compensated absences (refer note 39)
Staff Training & Welfare Expenses

E 33 : FINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOSSSSSTTTTT
E 33 : FI
E 33 : FI
NONONONONOTTTTTE 33 : FI
E 33 : FI

Interest Expense
- On Term loans,Cash Credit & Working Capital Facilities
- Delayed Payment of Taxes
-
- Others
Unwinding of discount on security deposit
Other borrowing cost

lease liabilities

E 34 : DEPPPPPRRRRRECECECECECIIIIIAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD AMOMOMOMOMORRRRRTTTTTIIIIIZZZZZAAAAATTTTTIIIIIOOOOON EN EN EN EN EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE
E 34 : DE
E 34 : DE
NONONONONOTTTTTE 34 : DE
E 34 : DE

Depreciation of poroperty, plant and equipment (refer note no. 4)
Depreciation & amortisation of Investment Properties (refer note no. 6)
Amortisation of intangible assets (refer note no. 8)
Amortisation of Right-to-use assets (refer note no. 49)

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

36,675.52
923.57
420.86
557.32
748.30
---------------------------------------------------------
39,325.57
39,325.57
39,325.57
39,325.57
39,325.57
========================

33,619.69
810.19
552.14
661.36
356.77
---------------------------------------------------------
36,000.15
36,000.15
36,000.15
36,000.15
36,000.15
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

2,709.71
1.74
810.19
17.34
30.32
631.74
---------------------------------------------------------
4,201.04
4,201.04
4,201.04
4,201.04
4,201.04
========================

2,279.95
15.09
-
118.79
26.39
597.08
---------------------------------------------------------
3,037.30
3,037.30
3,037.30
3,037.30
3,037.30
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

2,767.44
85.75
47.75
1,303.46
---------------------------------------------------------
4,204.40
4,204.40
4,204.40
4,204.40
4,204.40
========================

2,456.18
85.76
47.53
-
---------------------------------------------------------
2,589.48
2,589.48
2,589.48
2,589.48
2,589.48
========================

Pearl Global Industries Limited     Annual Report 2019-20

133

Notes
to consolidated financial statements for the year ended March 31, 2020

E 35 : OTHHHHHEEEEER ER ER ER ER EXXXXXPPPPPEEEEENSNSNSNSNSEEEEESSSSS
E 35 : OT
NONONONONOTTTTTE 35 : OT
E 35 : OT
E 35 : OT

Manufacturing Expense
Consumption of Stores & Spare Parts
Power & fuel
Rent
Rates & Taxes
Travelling & Conveyance
Freight & clearing Charges
Claim to Buyers
Repair & Maintenance
Plant & Machinery
Buildings
Other

Commission
Legal & Professional Expenses
Security Charges
Bank charges
Insurance Expenses
Payment to the Auditors (Refer note ‘a’ below)
Bad debts and doubtful advances written off
Allowance for bad and doubtful debts
Corporate social responsibility
Loss on mark to market forward contracts
Fair value loss on financial assets measured at fair value through profit and loss
Miscellaneous Expenses

TTTTTotototototaaaaalllll

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

16,679.11
1,243.96
2,317.50
805.00
117.26
1,546.44
3,925.85
1,356.27

76.87
9.07
982.83
691.70
6,202.54
467.08
1,051.72
362.56
81.59
26.31
47.92
22.15
462.80
-
3,187.47
---------------------------------------------------------
41,664.00
41,664.00
41,664.00
41,664.00
41,664.00
========================

18,571.61
1,013.26
2,375.82
2,383.03
193.18
1,462.23
4,715.33
1,428.01

100.14
14.77
959.66
596.22
5,048.38
428.24
1,216.69
290.26
58.22
103.78
391.92
22.76
-
133.64
2,102.37
---------------------------------------------------------
43,609.52
43,609.52
43,609.52
43,609.52
43,609.52
========================

rs is as fos fos fos fos follllllololololowswswswsws:::::
rs is a
ade to ao ao ao ao audududududitititititooooors is a
rs is a
ade t
ils of paaaaayyyyymememememennnnnt mt mt mt mt made t
ade t
ils of p
a) DDDDDetetetetetaaaaails of p
ils of p
rs is a
ade t
ils of p

(Amount in ` Lakh, unless otherwise stated)

PPPPPaaaaayyyyymememememennnnnt tt tt tt tt to ao ao ao ao audududududitititititooooorsrsrsrsrs
As aAs aAs aAs aAs audududududitititititooooorrrrr:::::
-
- Other Services
-

Statutory audit fee

Reimbursement of expenses

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

64.04
10.00
7.55
---------------------------------------------------------
81.59
81.59
81.59
81.59
81.59
========================

43.66
7.44
7.12
---------------------------------------------------------
58.22
58.22
58.22
58.22
58.22
========================

b) Miscellaneous expenses includes expense towards purchase of Electroral Bonds amounting to ` 160.00 Lakh ( March 31,
2019:  Nil  )  from  State  Bank  of  India  under  the  Scheme  -  ‘The  Electoral  Bond  Scheme,  2018’  notified  by  the  Central
Government vide Gazette Notification No. 20 dated January 2, 2018 by the Holding Company.

134

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

E 36 : EXCCCCCEEEEEPPPPPTTTTTIIIIIOOOOONNNNNAAAAAL ITL ITL ITL ITL ITEEEEEMMMMMSSSSS
E 36 : EX
NONONONONOTTTTTE 36 : EX
E 36 : EX
E 36 : EX

Profit on Sale of Fixed Assets (Net)
Property, plant and equipment written off
Impairment of Goodwill

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

(156.63)
0.23
225.12
---------------------------------------------------------
68.72
68.72
68.72
68.72
68.72
========================

(1,722.12)

-----
---------------------------------------------------------
(1,722.12)
(1,722.12)
(1,722.12)
(1,722.12)
(1,722.12)
========================

a)

For March 31, 2020, (Profit)/loss on sale of fixed assets includes loss on sale of tangile assets of ` 41.19 lakh (March 31,
2019: ` 36.97 lakh), profit on sale of tangible assets of ` 13.35 lakh and profit on account of compulsory acquisition of land
by the Central Government under National Highway Act, 1956 of ` 184.47 lakh (March 31, 2019: ` 1756.25 lakh).

E 37 : COCOCOCOCOMMMMMPPPPPOOOOONNNNNEEEEENNNNNTS OTS OTS OTS OTS OF OF OF OF OF OTTTTTHHHHHEEEEERRRRR
E 37 :
E 37 :
NONONONONOTTTTTE 37 :
E 37 :
CCCCCOOOOOMMMMMPPPPPRRRRREEEEEHHHHHEEEEENSNSNSNSNSIIIIIVVVVVE IE IE IE IE INNNNNCCCCCOOOOOMMMMMEEEEE

AAAAA (((((iiiii)))))

BBBBB

(((((iiiii)))))

nd lossssss
nd los
nd los
ofit a
ofit a
sified td td td td to po po po po prrrrrofit a
sifie
sifie
l not be re re re re reeeeeclclclclclaaaaassssssifie
l not b
l not b
IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill not b
ofit and los
nd los
ofit a
sifie
l not b
Re-measurement gains/ (losses) on defined benefit plans
Income tax expense

nd lossssss
nd los
nd los
ofit a
ofit a
sified td td td td to po po po po prrrrrofit a
sifie
sifie
IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill bl bl bl bl be re re re re reeeeeclclclclclaaaaassssssifie
ofit and los
nd los
ofit a
sifie
Foreign exchange translation reserve
Fair valuation of investment in mutual fund
Hedging Reserve through OCI
Income tax expense

E 38 : EARRRRRNNNNNIIIIINNNNNGGGGGS PS PS PS PS PEEEEER SR SR SR SR SHHHHHAAAAARRRRRE (EE (EE (EE (EE (EPPPPPS)S)S)S)S)
E 38 : EA
NONONONONOTTTTTE 38 : EA
E 38 : EA
E 38 : EA

Profit attributable to the equity shareholders (A)
Number/Weighted average number of equity shares
outstanding at the end of the year (B)
Nominal value of equity shares
Basic/Diluted earning per share (A/B) (in `)

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

(340.22)
69.11

(2,586.30)
38.29
991.80
(346.57)
---------------------------------------------------------
(2,173.90)
(2,173.90)
(2,173.90)
(2,173.90)
(2,173.90)
========================

222.67
(71.92)

1,334.88
(12.67)
-
-
---------------------------------------------------------
1,472.96
1,472.96
1,472.96
1,472.96
1,472.96
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

2,156.44
21,663,937

` 10
9.95

6,728.02
21,663,937

` 10
31.06

E 39 : GRAAAAATTTTTUUUUUIIIIITTTTTY AY AY AY AY ANNNNND OD OD OD OD OTTTTTHHHHHEEEEER PR PR PR PR POOOOOSSSSSTTTTT-----EEEEEMMMMMPPPPPLLLLLOOOOOYYYYYMMMMMEEEEENNNNNT BT BT BT BT BEEEEENNNNNEEEEEFIFIFIFIFIT PT PT PT PT PLLLLLAAAAANSNSNSNSNS
E 39 : GR
NONONONONOTTTTTE 39 : GR
E 39 : GR
E 39 : GR

a)a)a)a)a) DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnnsssss

The Group makes contribution towards Employees Provident Fund and Employee’s State Insurance scheme. Under the
rules of these schemes, the Group is required to contribute a specified percentage of payroll costs. The Group during the
year recognised the following amount in the Statement of profit and loss account under company’s contribution to defined
contribution plan.

Pearl Global Industries Limited     Annual Report 2019-20

135

Notes
to consolidated financial statements for the year ended March 31, 2020

Employer’s Contribution to Provident Fund/ Pension Fund
Employer’s Contribution to Employee State Insurance
Employer’s Contribution to Employees Deposit Linked Insurance Scheme
Employer’s Contribution to Welfare Fund

TTTTTotototototaaaaalllll

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

638.39
241.31
15.00
28.87
---------------------------------------------------------
923.57
923.57
923.57
923.57
923.57
========================

483.69
268.79
29.53
28.18
---------------------------------------------------------
810.19
810.19
810.19
810.19
810.19
========================

The contribution payable to these schemes by the Group are at the rates specified in the rules of the schemes.

nefit Obllllligigigigigaaaaatttttioioioioionnnnn:-:-:-:-:-
nefit Ob
nefit Ob
bbbbb))))) EEEEEmmmmmppppplololololoyeyeyeyeyee Be Be Be Be Beeeeenefit Ob
nefit Ob

nesia
nesia
ic of Indondondondondonesia
ic of I
ic of I
he Grouououououppppp’’’’’s os os os os opppppeeeeerrrrraaaaatttttioioioioion in in in in in tn tn tn tn the Rhe Rhe Rhe Rhe Reeeeepubpubpubpubpublllllic of I
he Gr
he Gr
PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr
nesia
nesia
ic of I
he Gr

The Group determines its post-employment benefits obligation under the Labor Law of the Republic of Indonesia No. 13/
2003. The cost of providing post-employment benefits is determined using “Projected Unit Credit” method. Actuarial
gains or losses are recognized as income or expense when the net cumulative unrecognized actuarial gains and losses at the
end of the previous reporting year exceeded the higher of 10% of the defined benefit obligation and 10% of the fair value of
plan  assets  at  that  date.  These  gains  or  losses  are  recognised  on  a  straight-line  basis  method  over  the  expected  average
remaining working lives of the employees. Past service cost arising from the introduction of a defined benefit plan or changes
in the benefits obligation of an existing plan are required to be amortized over the period until the benefits concerned
become vested.

ic of Vietietietietietnnnnnaaaaammmmm
ic of V
ic of V
he Grouououououppppp’’’’’s os os os os opppppeeeeerrrrraaaaatttttioioioioion in in in in in tn tn tn tn the She She She She Sooooociaciaciaciacialllllisisisisist Rt Rt Rt Rt Reeeeepubpubpubpubpublllllic of V
he Gr
he Gr
PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr
ic of V
he Gr

The severance allowance for employees is accrued at the end of each reporting period for all employees having worked at the
Group for full 12 months and above. Working time serving as the basis for calculating severance allowance shall be the total
actual working time subtracting the time when the employees have made unemployment insurance contributions as prescribed
by law, and the working time when severance allowance has been paid to the employees. The allowance made for each year of
service equals to a half of an average monthly salary under the Vietnamese Labour Code, Social Insurance Code and relevant
guiding documents. The average monthly salary used for calculation of severance allowance shall be adjusted to be the
average of the 6 consecutive months nearest to the date of the financial statements at the end of each reporting period. The
increase or decrease in the accrued amount shall be recorded in the statement of profit or loss or other comprehensive
income.

ic of Chhhhhiiiiinnnnnaaaaa
ic of C
le’le’s Rs Rs Rs Rs Reeeeepubpubpubpubpublllllic of C
ic of C
le’le’
n of the Phe Phe Phe Phe Peeeeeoooooppppple’
n of t
he Grouououououppppp’’’’’s os os os os opppppeeeeerrrrraaaaatttttioioioioion in in in in in tn tn tn tn the Hhe Hhe Hhe Hhe Hooooonnnnng Kg Kg Kg Kg Kooooonnnnng Sg Sg Sg Sg Spppppeeeeeciaciaciaciacial Al Al Al Al Admdmdmdmdmiiiiinnnnnisisisisistttttrrrrraaaaatttttivivivivive Re Re Re Re Reeeeegggggioioioioion of t
n of t
he Gr
PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr
he Gr
ic of C
n of t
he Gr

The Group participates in Mandatory Provident Fund Scheme (“MPF Scheme”) for its employees in Hong Kong. The
MPF Scheme is registered with the Mandatory Provident Fund Scheme Authority under the Mandatory Provident Fund
Schemes Ordinance. The assets of the MPF Scheme are held separately from those of the Group in funds under the control
of an independent trustee. Pursuant to the rules of the MPF Scheme, each of the employer and employees are required to
make contributions to the scheme at rates specified in the rules. The MPF Scheme is a defined contribution plan and the
Group is only obliged to make the required contributions under the scheme. No forfeited contribution is available to reduce
the contribution payable in the future years. The retirement benefit cost arising from the MPF Scheme charged to the
consolidated statement of profit or loss and other comprehensive income represent contribution payable to the funds by the
Group in accordance with the rules of the MPF Scheme.

ccccc))))) DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p
nefit p
nefit p
nefit plllllaaaaannnnnsssss
nefit p

In accordance with Ind AS 19 “Employee benefits”, an actuarial valuation on the basis of “Projected Unit Credit Method”
was carried out, through which the Group is able to determine the present value of obligations. “Projected Unit Credit
Method” recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures
each unit separately to built up the final obligation.

136

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

y schemememememe
y sche
iiiii))))) GrGrGrGrGraaaaatttttuuuuuititititity sche
y sche
y sche

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five
years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service
and salary at retirement age.

a) Gratuity in case of Gurgaon Division (Funded & maintained by Life Insurance Corporation of India)

b) Gratuity in case of Chennai & Banglore Division (Unfunded)

nefitsssss
iiiiiiiiii))))) OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit
nefit
nefit
nefit

As per the Group policy, eligible leaves can be accumulated by the employees and carried forward to future periods to
either be utilised during the service, or encashed. Encashment can be made during the service, on early retirement, on
withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits is determined
based on the seniority and the respective employee’s salary. The Group records an obligation for such compensated
absences in the period in which the employee renders the services that increase this entitlement. The obligation is
measured on the basis of independent actuarial valuation using the projected unit credit method.

Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive Income
in the statement of profit and loss. All other expenses related to defined benefit plans are recognised in statement of
profit and loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive Income will not
be reclassified to statement of profit and loss hence it is treated as part of retained earnings in the statement of changes
in equity. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment
or settlement occurs. Curtailment gains and losses are accounted for as past service costs.

ddddd))))) The following tables summarize the components of net benefit expense recognised in the Statement of profit and loss and
the funded status and amounts recognised in the balance sheet for the defined benefit plan (viz. gratuity and compensated
absences).Leave encashment include earned leaves and sick leaves. These have been provided on accrual basis, based on year
end actuarial valuation.

nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn
nefit o
nefit o
CCCCChhhhhaaaaannnnnggggge ie ie ie ie in bn bn bn bn beeeeenefit o
nefit o

OpOpOpOpOpeeeeennnnniiiiinnnnng defi
nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn
nefit o
g definenenenened bd bd bd bd beeeeenefit o
nefit o
g defi
g defi
nefit o
g defi
Interest cost
Service cost
Past Service cost
Benefits paid
Foreign currency translation reserve
Actuarial (gain) / loss on obligations
ue of obbbbbllllligigigigigaaaaatttttioioioioionnnnn
ue of o
ue of o
PPPPPrrrrreseeseeseeseesennnnnt vt vt vt vt vaaaaalllllue of o
ue of o
he yearrrrr
he yea
he yea
nd of t
aaaaas as as as as at tt tt tt tt the ehe ehe ehe ehe end of t
nd of t
nd of the yea
he yea
nd of t

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

617.55
48.11
111.96
-
(47.38)
-
(75.64)
654.60
654.60
654.60
654.60
654.60

1,175.43
95.66
287.12
(7.89)
(74.11)
8.90
(275.51)
1,209.60
1,209.60
1,209.60
1,209.60
1,209.60

740.07
24.11
286.93
-
(743.71)
24.33
246.28
578.01
578.01
578.01
578.01
578.01

672.77
51.87
125.98
-
(90.48)
-
(142.59)
617.55
617.55
617.55
617.55
617.55

877.11
77.36
305.04
-
(50.69)
33.09
(66.48)
1,175.43
1,175.43
1,175.43
1,175.43
1,175.43

448.27
13.92
180.16
-
(377.73)
8.17
467.28
740.07
740.07
740.07
740.07
740.07

Pearl Global Industries Limited     Annual Report 2019-20

137

Notes
to consolidated financial statements for the year ended March 31, 2020

e)e)e)e)e) The following tables summarise the components of net benefit expense recognised in the Statement of profit or loss and the

funded status and amounts recognised in the balance sheet for the respective plans:

CosCosCosCosCost fot fot fot fot for tr tr tr tr the yea
he year ir ir ir ir inclnclnclnclncludeudeudeudeudeddddd
he yea
he yea
he yea
uuuuundendendendender er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit
nefit
nefit
nefit
nefit

Current service cost
Past service cost
Interest cost
Expected return on plan assets
Actuarial (gain) / loss
NNNNNet cet cet cet cet cosososososttttt

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

111.96
-
48.11
(26.56)
-
133.51
133.51
133.51
133.51
133.51

287.12
(7.89)
95.66
-
(87.54)
287.35
287.35
287.35
287.35
287.35

286.93
-
24.11
-
246.28
557.32
557.32
557.32
557.32
557.32

125.98
-
51.87
(8.11)
-
169.74
169.74
169.74
169.74
169.74

305.04
-
77.36
-
-
382.40
382.40
382.40
382.40
382.40

180.16
-
13.92
-
467.28
661.36
661.36
661.36
661.36
661.36

ue of the phe phe phe phe plllllaaaaan an an an an assssssetsetsetsetsets as as as as arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws:::::
ue of t
ue of t
fffff ))))) CCCCChhhhhaaaaannnnnggggges ies ies ies ies in tn tn tn tn the fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of t
ue of t

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

Fair value of plan assets
at the beginning
Expected return on plan assets
Contributions
Benefits paid
Actuarial gains / (losses)
on the plan assets
ue of plllllaaaaan an an an an assssssetsetsetsetsets as as as as at tt tt tt tt the ehe ehe ehe ehe en dn dn dn dn d
ue of p
ue of p
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of p
ue of p

388.39

26.26
6.88
(47.38)
(10.93)

363.22
363.22
363.22
363.22
363.22

-

-
-
-
-

-----

-

-
-
-
-

-----

105.16

8.11
352.00
(90.48)
13.60

388.39
388.39
388.39
388.39
388.39

-

-
-
-
-

-----

-

-
-
-
-

-----

I is as fos fos fos fos follllllololololowswswswsws:::::
I is a
I is a
n/loss rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI is a
n/los
n/los
il of actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin/los
il of act
il of act
ggggg ))))) DDDDDetetetetetaaaaail of act
I is a
n/los
il of act

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

Actuarial gain / (loss)
for the year – obligation
Actuarial gain / (loss)
for the year - plan assets
he yearrrrr
s) for tr tr tr tr the yea
he yea
he yea
s) fos) fo
s) fo
TTTTTotototototaaaaal gl gl gl gl gaaaaaiiiiin / (n / (n / (n / (n / (loslosloslosloss) fo
he yea

(75.64)

(275.51)

10.93

-

(64.71)
(64.71)
(64.71)
(64.71)
(64.71)

(275.51)
(275.51)
(275.51)
(275.51)
(275.51)

-

-

-----

142.59

66.48

13.60

-

156.19
156.19
156.19
156.19
156.19

66.48
66.48
66.48
66.48
66.48

-

-

-----

138

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

e sheet det det det det daaaaattttte ae ae ae ae arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws:::::
e she
l actuuuuuaaaaarrrrriaiaiaiaial al al al al assssssssssuuuuummmmmptptptptptioioioioionnnnns as as as as at tt tt tt tt the bhe bhe bhe bhe baaaaalllllaaaaancncncncnce she
e she
l act
hhhhh))))) PPPPPrrrrriiiiincincincincincipppppaaaaal act
l act
e she
l act

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

ic  assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss
ic  a
EcEcEcEcEcooooonononononommmmmic  a
ic  a
ic  a
1.
2.

Discount rate
Rate of increase in compensation levels

ic  assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss
ic  a
DDDDDeeeeemomomomomogggggrrrrraaaaappppphhhhhic  a
ic  a
ic  a
Expected average remaining
1.
working lives of employees(years)
Retirement Age (years)

2.
3. Mortality Rate

6.76% 6.72% to 8.70% 6.73% to 8.47%
5.00% 3.00% to 6.00% 5.00% to 6.00%

8.00% 7.60% to 8.70% 7.60% to 8.00%
6.00%
6.00% 3.00% to 6.00%

20.41

28.12

55-60

58.00
Indian Assured Lives Mortality
(2012-14) (modified) ultimate

26.16

58-60

0.05
0.04
0.04

20.19

26.02

55-60

58.00
Indian Assured Lives Mortality
(2006-08) (modified) ultimate

0.03
0.02
0.01

0.04
0.04
0.03

24.29

58-60

0.04
0.03
0.03

se of unnnnnfffffuuuuundendendendendeddddd)))))
se of u
se of u
WitWitWitWitWithdrhdrhdrhdrhdraaaaawwwwwaaaaal  Rl  Rl  Rl  Rl  Raaaaattttte(e(e(e(e(AAAAAvvvvveeeeerrrrraaaaaggggge  ie  ie  ie  ie  in  cn  cn  cn  cn  caaaaase of u
se of u
1.
2.
3.

Ages up to 30 Years
Ages from 30-44
Above 44 years

0.03
0.02
0.01

0.06
0.06
0.06

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.

s) forrrrr
s) fo
s) fo
n actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin / (n / (n / (n / (n / (loslosloslosloss) fo
n act
n act
e adjuuuuussssstttttmememememennnnnttttts os os os os on act
e adj
e adj
nd expppppeeeeerrrrrieieieieiencncncncnce adj
nd ex
nd ex
e Sheet aet aet aet aet and ex
e She
e She
ies reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in tn tn tn tn the Bhe Bhe Bhe Bhe Baaaaalllllaaaaancncncncnce She
ies r
ies r
s) / liabiabiabiabiabilililililititititities r
s) / l
s) / l
et (assssssetsetsetsetsets) / l
et (a
et (a
iiiii))))) NNNNNet (a
s) fo
n act
e adj
nd ex
e She
ies r
s) / l
et (a
nefit obbbbbllllligigigigigaaaaatttttioioioioion an an an an and pnd pnd pnd pnd plllllaaaaan an an an an assssssetsetsetsetsetsssss.....
nefit o
nefit o
bbbbbeeeeenefit o
nefit o

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

Present value of obligation
Less: Fair value of plan assets
s /( liabiabiabiabiabilililililititititity)y)y)y)y)
s /( l
s /( l
NNNNNet aet aet aet aet assssssetsetsetsetsets /( l
s /( l

654.60
363.22
(291.38)
(291.38)
(291.38)
(291.38)
(291.38)

1,209.60
-
(1,209.60)
(1,209.60)
(1,209.60)
(1,209.60)
(1,209.60)

578.01
-
(578.01)
(578.01)
(578.01)
(578.01)
(578.01)

617.55
388.39
(229.16)
(229.16)
(229.16)
(229.16)
(229.16)

1,175.43
-
(1,175.43)
(1,175.43)
(1,175.43)
(1,175.43)
(1,175.43)

740.07
-
(740.07)
(740.07)
(740.07)
(740.07)
(740.07)

s showwwwwn bn bn bn bn beloeloeloeloelowwwww :::::
s sho
s sho
s is a
r signnnnnificificificificificaaaaannnnnt at at at at assssssssssuuuuummmmmptptptptptioioioioionnnnns is a
s is a
r sig
r sig
lysis fo
jjjjj))))) A qA qA qA qA quuuuuaaaaannnnntttttitititititaaaaatttttivivivivive see see see see sennnnnsitsitsitsitsitivivivivivititititity ay ay ay ay annnnnaaaaalysis fo
lysis fo
s is as sho
lysis for sig
s sho
s is a
r sig
lysis fo

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

AAAAA..... DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttteeeee

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

B.B.B.B.B.

72.58

157.65

590.80

(59.83)

(61.88)

Effect on DBO due to 0.5%
increase in Discount Rate
Effect on DBO due to 0.5%
decrease in Discount Rate
SSSSSaaaaalllllaaaaarrrrry esc
y escaaaaalllllaaaaatttttioioioioion rn rn rn rn raaaaattttteeeee
y esc
y esc
y esc
Effect on DBO due to 0.5%
increase in Salary Escalation Rate
Effect on DBO due to 0.5%
decrease in Salary Escalation Rate
Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated.

(510.52)

(510.28)

(63.40)

(61.30)

282.94

787.35

786.16

283.57

619.47

490.18

588.74

156.36

73.15

70.80

70.24

(425.20)

(425.58)

431.66

523.59

C.C.C.C.C. SSSSSeeeeennnnnsitsitsitsitsitivivivivivititititities dies dies dies dies due tue tue tue tue to mo
hese not caaaaalculculculculculllllaaaaattttteeeeeddddd
hese not c
act of chaaaaannnnnggggge de de de de due tue tue tue tue to to to to to these not c
hese not c
act of ch
l & hencncncncnce ie ie ie ie immmmmpppppact of ch
act of ch
l & he
e not maaaaattttteeeeerrrrriaiaiaiaial & he
l & he
e not m
o morrrrrtttttaaaaalllllititititity & wy & wy & wy & wy & wititititithdrhdrhdrhdrhdraaaaawwwwwaaaaals als als als als arrrrre not m
e not m
o moo mo
o mo
hese not c
act of ch
l & he
e not m
le.le.
le.le.
fofofofofor gr gr gr gr grrrrrouououououp ap ap ap ap as a ws a ws a ws a ws a whohohohohole.

Pearl Global Industries Limited     Annual Report 2019-20

139

Notes
to consolidated financial statements for the year ended March 31, 2020

k)k)k)k)k) RiskRiskRiskRiskRisk

Discount Rate
Salary Increases

Withdrawals

Morality and disability

Reduction in discount rate in subsequent valuations can increase the liability.
Actual salary increases will increase the defined benefit liability. Increase in salary increase rate
assumption in future valuations which inturn also increase the liability.
Actual  withdrawals  proving  higher  or  lower  than  assumed  withdrawals  and  change  of
withdrawals rates at subsequent valuations can impact defined benefit liability.
Actual details and disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.

n is as fos fos fos fos follllllololololowswswswsws:::::
n is a
n is a
nefit obbbbbllllligigigigigaaaaatttttioioioioion is a
nefit o
nefit o
ofile of definenenenened bd bd bd bd beeeeenefit o
ofile of defi
ofile of defi
lllll))))) MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of defi
n is a
nefit o
ofile of defi

0 to 1 years
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
from 5 years onwards

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

55.88
45.58
50.45
36.42
59.87
771.60

33.40
28.07
60.96
82.29
154.55
4,148.36

50.20
29.80
52.70
58.90
52.40
822.30

9.60
12.00
18.30
30.00
52.80
3,534.90

E 40 : CAPPPPPIIIIITTTTTAAAAAL ML ML ML ML MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT
E 40 : CA
E 40 : CA
NONONONONOTTTTTE 40 : CA
E 40 : CA

For  the  purpose  of  capital  management,  capital  includes  issued  equity  capital,  share  premium  and  all  other  equity  reserves
attributable to the equity holders of the parent. The primary objective of the capital management is to maximise the shareholder
value.

The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Group may return capital to shareholders or issue new
shares. The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group
includes within net debt, interest bearing borrowings, trade and other payables, less cash and cash equivalents.

Borrowings (Refer to note 21 and 21A)
Current maturity of long term loans (Refer to note 22)
Trade payables (Refer to note 25)
Other payables
Less: cash and cash equivalents (Refer to note 17)

NNNNNet debt (
et debt (
et debt (
et debt (AAAAA)))))
et debt (

Equity share capital (Refer to note 19)
Other equity (Refer to note 20)

TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaapppppitititititaaaaal (B)
l (B)
l (B)
l (B)
l (B)

A+B=C)
A+B=C)
nd net debt (
CCCCCaaaaapppppitititititaaaaal al al al al and net debt (
nd net debt (
A+B=C)
nd net debt (A+B=C)
A+B=C)
nd net debt (

io (A/C)A/C)A/C)A/C)A/C)
io (
GGGGGeaeaeaeaearrrrriiiiinnnnng rg rg rg rg raaaaatttttio (
io (
io (

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
35,699.01
2,769.20
18,106.67
7,050.65
(8,808.89)
---------------------------------------------------------
54,816.65
54,816.65
54,816.65
54,816.65
54,816.65
---------------------------------------------------------
2,166.39
47,891.00
---------------------------------------------------------
50,057.40
50,057.40
50,057.40
50,057.40
50,057.40
---------------------------------------------------------
104,874.04
104,874.04
104,874.04
104,874.04
104,874.04
---------------------------------------------------------
52.27%
52.27%
52.27%
52.27%
52.27%
---------------------------------------------------------

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
31,592.83
1,680.89
18,106.47
7,874.29
(9,434.12)
---------------------------------------------------------
49,820.36
49,820.36
49,820.36
49,820.36
49,820.36
---------------------------------------------------------
2,166.39
44,820.35
---------------------------------------------------------
46,986.74
46,986.74
46,986.74
46,986.74
46,986.74
---------------------------------------------------------
96,807.11
96,807.11
96,807.11
96,807.11
96,807.11
---------------------------------------------------------
51.46%
51.46%
51.46%
51.46%
51.46%
---------------------------------------------------------

140

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2020 and
March 31, 2019.

In order to achieve this overall objective, the capital management, amongst other things, aims to ensure that it meets financial
covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

E 41 : DERRRRRIIIIIVVVVVAAAAATTTTTIIIIIVVVVVE IE IE IE IE INSNSNSNSNSTTTTTRRRRRUUUUUMMMMMEEEEENNNNNTS ATS ATS ATS ATS ANNNNND UD UD UD UD UNNNNNHHHHHEEEEEDDDDDGGGGGEEEEED FD FD FD FD FOOOOORRRRREEEEEIIIIIGGGGGN CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNCCCCCY EY EY EY EY EXXXXXPPPPPOOOOOSSSSSUUUUURRRRREEEEE
E 41 : DE
NONONONONOTTTTTE 41 : DE
E 41 : DE
E 41 : DE

I)I)I)I)I) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg

s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss
s hes he
es not designnnnnaaaaattttteeeeed ad ad ad ad as he
es not desig
es not desig
DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives not desig
es not desig

The  Group  uses  forward  currency  contracts  to  hedge  its  foreign  currency  risks.  Derivative  contracts  not  designated  by
management  as  hedging  instruments  are  initially  recognized  at  fair  value  on  the  date  on  which  a  derivative  contract  is
entered  into and are subsequently re-measured  at fair  value on each reporting date. Such contracts are entered into for
periods consistent with exposure of the underlying transactions.

s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss
s hes he
es designnnnnaaaaattttteeeeed ad ad ad ad as he
es desig
es desig
DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives desig
es desig

The Group enters into hedging instruments in accordance with policies as approved by the Board of Directors with written
principles which is consistent with the risk management strategy of the Group. The Group has decided to apply hedge
accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered post April 01,
2019. Hedging strategies are decided and monitored periodically by the Risk Management Committee of the Board.

CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddgggggeseseseses

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items
in US dollar. These forecast transactions are highly probable. The foreign exchange forward contract balances vary with the
level of expected foreign currency sales and changes in foreign exchange forward rates.

s is as fos fos fos fos follllllololololowswswswsws:::::
s is a
s is a
ue of derrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts is a
ue of de
ue of de
TTTTThe fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of de
s is a
ue of de

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Fair value of foreign currency forward exchange
contract designated as hedging instruments

LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

AsAsAsAsAssetsetsetsetsetsssss
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

991.80

-----

The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale
transactions. As a result, no hedge effectiveness arises requiring recognition through profit or loss.

The cash flow hedges of the forecasted sale transactions for the year ended March 31, 2020 were assessed to be highly
effective and unrealised loss of ` 991.80 lakh, with a deferred tax assets of ` 346.57 lakh relating to the hedging instruments,
is included in OCI.

The following table includes the maturity profile of the foreign exchange forward contracts:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As at March 31, 2020 (INR)
Foreign exchange forward
contracts (highly probable
forecast sales) USD
Notional amount (in USD)
Average forward rate(USD/INR)

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
1 monnnnnttttthhhhh
1 mo
1 mo
1 mo
1 mo
3,118.99
70.00

1 t1 t1 t1 t1 to 3o 3o 3o 3o 3
momomomomonnnnnttttthhhhhsssss
5,617.99
120.00

3 t3 t3 t3 t3 to 6o 6o 6o 6o 6
momomomomonnnnnttttthhhhhsssss
6,316.02
180.00

6 t6 t6 t6 t6 to 9o 9o 9o 9o 9
momomomomonnnnnttttthhhhhsssss
4,313.64
190.00

9 t9 t9 t9 t9 to 12o 12o 12o 12o 12
momomomomonnnnnttttthhhhhsssss
4,625.57
240.00

TTTTTotototototaaaaalllll

23,992.21
800.00

43.00
72.53

77.00
72.96

85.92
73.51

58.00
74.37

61.00
75.83

324.92
73.84

Pearl Global Industries Limited     Annual Report 2019-20

141

Notes
to consolidated financial statements for the year ended March 31, 2020

The impact of the hedging instruments on the balance sheet is as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Foreign currency risk forward
contract- As at March 31, 2020

(((((UUUUUSSSSSD)D)D)D)D)

(I(I(I(I(INNNNNR iR iR iR iR in ln ln ln ln laaaaakkkkkhhhhh)))))

NNNNNotototototioioioioionnnnnaaaaal al al al al amoumoumoumoumounnnnnttttt CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt LLLLLiiiiine itne itne itne itne iteeeeem im im im im in Bn Bn Bn Bn BSSSSSTTTTT CCCCChhhhhaaaaannnnnggggges ies ies ies ies in Fn Fn Fn Fn Faaaaaiiiiirrrrr
vvvvvaaaaalllllue uue uue uue uue usesesesesed fod fod fod fod forrrrr
meameameameameasssssuuuuurrrrriiiiinnnnnggggg
neffectctctctctiviviviviveeeeenesnesnesnesnessssss
neffe
iiiiineffe
neffe
neffe
fofofofofor tr tr tr tr the yea
he yearrrrr
he yea
he yea
he yea
(991.80)

 w w w w wheheheheherrrrre He He He He Heeeeedddddgggggeeeee
iiiiinnnnnssssstttttrrrrruuuuumememememennnnnt ist ist ist ist is
iscloseddddd
isclose
dddddisclose
isclose
isclose

(991.80)

324.92

Other financial
Liabilities

The impact of hedged items on the statement of financial position is, as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Highly probable forecast sales

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

CCCCChhhhhaaaaannnnnggggge ie ie ie ie in fn fn fn fn faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
r measssssuuuuurrrrriiiiinnnnnggggg
r mea
r mea
uuuuusesesesesed fod fod fod fod for mea
r mea
neffectctctctctiviviviviveeeeenesnesnesnesnessssss
neffe
neffe
iiiiineffe
neffe
(991.80)

sh flowwwww
sh flo
sh flo
CCCCCaaaaash flo
sh flo
HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee

(991.80)

The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows:
ofit and Lnd Lnd Lnd Lnd Losososososs)s)s)s)s)
ofit a
ofit a
t of Prrrrrofit a
t of P
t of P
s of hedddddggggge ace ace ace ace accccccououououounnnnntttttiiiiinnnnng og og og og on Fn Fn Fn Fn Fiiiiinnnnnaaaaancianciancianciancial Pl Pl Pl Pl Positositositositositioioioioion (Sn (Sn (Sn (Sn (Stttttaaaaattttteeeeemememememennnnnt of P
s of he
s of he
e of effectctctctcts of he
e of effe
e of effe
Disclosuuuuurrrrre of effe
Disclos
Disclos
ofit a
t of P
s of he
e of effe
Disclos
Disclos

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As at March 31, 2020
Highly probable forecast sales

l hedddddgggggiiiiinnnnnggggg
l hel he
l he
TTTTTotototototaaaaal he
gggggaaaaaiiiiin/(n/(n/(n/(n/(loslosloslosloss)s)s)s)s)
rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn
OOOOOCCCCCIIIII

neffectctctctctiviviviviveeeeenesnesnesnesnessssss LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn
neffe
neffe
IIIIIneffe
neffe
t of
t of
rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of
t of
t of
r lossssss
r los
r los
ofit o
ofit o
ppppprrrrrofit o
ofit or los
r los
ofit o

LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn
AAAAAmoumoumoumoumounnnnnttttt
t of
t of
SSSSStttttaaaaattttteeeeemememememennnnnt of
sifieddddd
sifie
sifie
rrrrreeeeeclclclclclaaaaassssssifie
t of
t of
sifie
nd lossssss
nd los
nd los
ofit a
ofit a
ofit andndndndnd frfrfrfrfrooooom Om Om Om Om OCCCCCI tI tI tI tI tooooo ppppprrrrrofit a
ofit a
ofit a
ppppprrrrrofit a
ofit and los
nd los
ofit a
ofit a
r lossssss
r los
r los
ofit o
ofit o
losloslosloslossssss ppppprrrrrofit o
ofit or los
r los
ofit o

(1,030.22)

-

-

(38.42) Revenue from
Operations

act of hedddddgggggiiiiinnnnng og og og og on en en en en eqqqqquuuuuititititityyyyy
act of he
act of he
IIIIImmmmmpppppact of he
act of he
Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As at March 31, 2020
Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts
Amount reclassified to profit & loss
Tax effect

VVVVVaaaaallllluuuuuaaaaatttttioioioioion Tn Tn Tn Tn Teeeeechchchchchnnnnniqiqiqiqiqueueueueue

CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololowwwww
HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee
(991.80)
(1,030.22)
38.42
346.57

The Group enters into derivative financial instruments which are valued using valuation techniques which employs the use
of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using present
value calculations. Where quoted market prices are not available, fair values are based on Management best estimates, which
are arrived at by the reference to market prices.

142

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

rs of Unnnnnhehehehehedddddgggggeeeeed fod fod fod fod forrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy exy exy exy exy exppppposososososuuuuurrrrreseseseses:::::
rs of U
IIIIII)I)I)I)I) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of U
rs of U
rs of U

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Foreign currency receivable

Foreign currency payable

FFFFFooooorrrrreigeigeigeigeignnnnn
CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy
iiiiin ln ln ln ln laaaaakkkkkhhhhh
5.63
HKD
56,295.50
IDR
0.00
EUR
0.16
GBP
SGD
0.00
VND 50,120.31
CNY
0.15
77.12
USD
22.40
HKD
2.40
IDR
VND
7.28
27.31
USD

(((((````` i i i i in ln ln ln ln laaaaakkkkkhhhhh)))))

54.75 HKD
259.93 IDR
0.04 EUR
15.31 GBP
0.01 SGD

FFFFFooooorrrrreigeigeigeigeignnnnn
CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy
iiiiin ln ln ln ln laaaaakkkkkhhhhh
25.37
36,333.72
4.25
0.00
0.00
161.30 VND 25,430.25
0.54
1.54 CNY
-
5,813.75 USD
181.63
1,688.69 HKD
-
180.71 IDR
546.85 VND 122,327.45
68.75

2,058.88 USD

(((((````` i i i i in ln ln ln ln laaaaakkkkkhhhhh)))))

223.51
176.79
330.46
0.10
0.01
75.83
5.52
-
1,600.42
-
364.74
4,755.72

III) In respect of the derivative contracts entered into by the Group. The Management asessess no material foreseeable losses as

at the reporting date.

E 42 : FAIIIIIR VR VR VR VR VAAAAALLLLLUUUUUEEEEESSSSS
E 42 : FA
E 42 : FA
NONONONONOTTTTTE 42 : FA
E 42 : FA

Set out below, is a comparison by class of the carrying amounts and fair value of the financial instruments, other than those with
carrying amounts that are reasonable approximations of fair values:

a)

ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss:::::
ue of fi
ue of fi
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi
ue of fi

(Amount in ` Lakh, unless otherwise stated)

s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiirrrrr
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s mea
s mea
s mea
vvvvvaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o
r lossssss
r los
r los
ofit o
ofit o
ofit or los
r los
ofit o
Investment in equity instruments
Investment in mutual fund
Mark to market forward contracts
(((((AAAAA)))))
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s mea
s mea
s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
s mea
ttttthhhhhrrrrrououououougggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe
Investment in mutual fund
(B)(B)
(B)(B)
(B)

CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues
As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

141.00
692.68
-
833.68
833.68
833.68
833.68
833.68

133.50
-
462.80
596.30
596.30
596.30
596.30
596.30

141.00
692.68
-
833.68
833.68
833.68
833.68
833.68

133.50
-
462.80
596.30
596.30
596.30
596.30
596.30

948.97
948.97
948.97
948.97
948.97
948.97

1,312.68
1,312.68
1,312.68
1,312.68
1,312.68
1,312.68

948.97
948.97
948.97
948.97
948.97
948.97

1,312.68
1,312.68
1,312.68
1,312.68
1,312.68
1,312.68

Pearl Global Industries Limited     Annual Report 2019-20

143

Notes
to consolidated financial statements for the year ended March 31, 2020

a)

ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss: : : : : (((((CCCCCooooonnnnntttttddddd.).).).).)
ue of fi
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi
ue of fi
ue of fi

(Amount in ` Lakh, unless otherwise stated)

FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
s mea
s mea
s mea
Investment in government securities
Security deposits
Interest accrued on fixed deposits
Deposits with original maturity of more than 12 months
Loans from related parties
Loans from others parties
Interest accrued on loan to related parties
Others
Trade receivable
Cash and cash equivalents
Other bank balances
(C)
(C)
(C)
(C)
(C)
A+B+C)
A+B+C)
TTTTTotototototaaaaal (l (l (l (l (A+B+C)
A+B+C)
A+B+C)

CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues
As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

1,994.40
1,147.70
56.42
265.11
300.00
3,876.49
8.45
1.16
22,042.47
8,808.89
2,168.83
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
42,452.57
42,452.57
42,452.57
42,452.57
42,452.57

1,829.98
1,124.81
40.97
1,213.74
300.00
3,658.32
12.14
235.41
22,177.86
9,434.12
1,707.71
41,735.06
41,735.06
41,735.06
41,735.06
41,735.06
43,644.04
43,644.04
43,644.04
43,644.04
43,644.04

1,994.40
1,147.70
56.42
265.11
300.00
3,876.49
8.45
1.16
22,042.47
8,808.89
2,168.83
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
42,452.57
42,452.57
42,452.57
42,452.57
42,452.57

1,829.98
1,124.81
40.97
1,213.74
300.00
3,658.32
12.14
235.41
22,177.86
9,434.12
1,707.71
41,735.06
41,735.06
41,735.06
41,735.06
41,735.06
43,644.04
43,644.04
43,644.04
43,644.04
43,644.04

b)

ue of finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies:::::
ue of fi
ue of fi
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi
ue of fi

(Amount in ` Lakh, unless otherwise stated)

s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
s mea
s mea
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s mea
ttttthhhhhrrrrrououououougggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe
Derivative Financial Instruments
(((((AAAAA)))))

FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
ies mea
ies mea
ies mea
Borrowings
Lease Liabilities
Security Deposit
Book Overdraft
Unpaid Dividend
Current Maturity of long term loans
Trade payables
Interest accrued but not due on borrowings
Creditors for capital expenditure
Others
(B)(B)
(B)(B)
(B)
A+B)A+B)
TTTTTotototototaaaaal(l(l(l(l(A+B)
A+B)A+B)

CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues

As AAs AAs AAs AAs Attttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues
As AAs AAs AAs AAs Attttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

991.8
991.8
991.8
991.8
991.8
991.8

35,699.01
7,797.67
246.97
26.87
31.85
2,769.20
18,106.67
37.48
30.21
1,830.22
66,576.15
66,576.15
66,576.15
66,576.15
66,576.15
67,567.95
67,567.95
67,567.95
67,567.95
67,567.95

-
-----

991.8
991.8
991.8
991.8
991.8
991.8

-
-----

31,592.83
-
222.00
150.48
26.83
1,680.89
18,106.47
24.67
849.25
2,424.77
55,078.19
55,078.19
55,078.19
55,078.19
55,078.19
55,078.19
55,078.19
55,078.19
55,078.19
55,078.19

35,723.90
7,797.67
246.97
26.87
31.85
2,769.20
18,106.67
37.48
30.21
1,830.22
66,601.04
66,601.04
66,601.04
66,601.04
66,601.04
67,592.83
67,592.83
67,592.83
67,592.83
67,592.83

31,601.74
-
222.00
150.48
26.83
1,680.89
18,106.47
24.67
849.25
2,424.77
55,087.10
55,087.10
55,087.10
55,087.10
55,087.10
55,087.10
55,087.10
55,087.10
55,087.10
55,087.10

144

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest
accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to
the short-term maturities of these instruments.

Long-term borrowing includes vehicle loan and corporate loans obtained from banks and Financial institutions . Management
determines vehicle loan and corporate loan to be at the market rate of interest as at the reporting date, accordingly, the
carrying value of such long-term borrowing approximates fair value.

n deteeeeerrrrrmmmmmiiiiinnnnniiiiinnnnng fg fg fg fg faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
n det
ccccc))))) DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttte ue ue ue ue usesesesesed id id id id in det
n det
n det

The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing
rate of borrower which in case of financial liabilities is average market cost of borrowings and in case of financial asset is the
average market rate of similar credit rated instrument. The Group maintains policies and procedures to value financial assets
or financial liabilities using the best and most relevant data available.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.

d) The following methods and assumptions were used to estimate the fair values:

i)

Fair values of the interest-bearing borrowings and loans are determined by using DCF method using discount rate that
reflects the rate as at the end of the reporting period.

ii) Fair value for security deposits paid & received (other than perpetual security deposits) has been presented based on

the discounting factor as at the reporting date.

iii) Fair value for all other non-current assets and liabilities is equivalent to the amortised cost, interest rate on them is

equivalent to the market rate of interest.

iv) For other financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

v)

Specific valuation techniques used to value financial instruments include:

-

-

-

The fair values of investments In mutual fund units is based on The net asset value (‘NAV’) as stated by the issuers
of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which
The issuer will issue further units of mutual fund and The price at which issuers will redeem such units from the
investors.

Investment in quoted equity instruments of entities other than subsidiaries has been determined on the basis of
quoted rates available from securities markets in India.

The fair value of derivative financial instruments (forward exchange contract) has been determined on the basis of
mark to market valuation.

E 43 : FAIIIIIR HR HR HR HR HIIIIIEEEEERRRRRAAAAARRRRRCCCCCHHHHHYYYYY
E 43 : FA
NONONONONOTTTTTE 43 : FA
E 43 : FA
E 43 : FA

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are
observable, either directly or indirectly.

Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not
based on observable market data.

The following table provides the fair value measurement hierarchy of the assets and liabilities

Pearl Global Industries Limited     Annual Report 2019-20

145

Notes
to consolidated financial statements for the year ended March 31, 2020

ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020:
ch 31, 2020:
ch 31, 2020:
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
ue mea
isclos
a)a)a)a)a) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
isclos
ch 31, 2020:
ch 31, 2020:
ue mea
isclos

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiirrrrr
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s mea
s mea
s mea
vvvvvaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o
r lossssss
r los
r los
ofit o
ofit o
ofit or los
r los
ofit o
Investment in equity instruments
Investment in mutual fund
TTTTTotototototaaaaal Al Al Al Al A
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
s mea
s mea
s mea
ttttthhhhhrrrrro uo uo uo uo ugggggh oth oth oth oth otheheheheher  cr  cr  cr  cr  cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive  ie  ie  ie  ie  incncncncncooooomememememe
Investment in mutual fund
TTTTTotototototaaaaal Bl Bl Bl Bl B
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
s mea
s mea
s mea
Investment in government securities
Security deposits
Interest accrued on fixed deposits
Deposits with original maturity of more than 12 months
Loans from related parties
Loans from others parties
Interest accrued on loan to related parties
Other
Trade receivable*
Cash and cash equivalents*
Other bank balances*
TTTTTotototototaaaaal Cl Cl Cl Cl C
TTTTTotototototaaaaal  (l  (l  (l  (l  (A+B+C)
A+B+C)
A+B+C)
A+B+C)
A+B+C)

141.00
692.68
833.68
833.68
833.68
833.68
833.68

948.97
948.97
948.97
948.97
948.97
948.97

1,994.40
1,147.70
56.42
265.11
300.00
3,876.49
8.45
1.16
22,042.47
8,808.89
2,168.83
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
42,452.57
42,452.57
42,452.57
42,452.57
42,452.57

-
-

-
-----

1,994.40
1,147.70
56.42
265.11
300.00
3,876.49
8.45
1.16
22,042.47
8,808.89
2,168.83
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

141.00
692.68
833.68
833.68
833.68
833.68
833.68

948.97
948.97
948.97
948.97
948.97
948.97

-
-
-
-
-
-
-
-
-
-
-
-----
1,782.65
1,782.65
1,782.65
1,782.65
1,782.65

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)
el 3)
el 3)

-
-
-----

-----

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

-
-
-----

-
-----

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

ch 31, 2020:
ch 31, 2020:
ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020:
ies a
ies a
ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a
ue mea
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
isclos
isclos
bbbbb))))) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
ch 31, 2020:
ch 31, 2020:
ies a
ue mea
isclos

As AAs AAs AAs AAs Attttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 2)
el 2)
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 3)
el 3)
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

TTTTTotototototaaaaalllll

141.00
692.68
833.68
833.68
833.68
833.68
833.68

948.97
948.97
948.97
948.97
948.97
948.97

1,994.40
1,147.70
56.42
265.11
300.00
3,876.49
8.45
1.16
22,042.47
8,808.89
2,168.83
40,669.92
40,669.92
40,669.92
40,669.92
40,669.92
42,452.57
42,452.57
42,452.57
42,452.57
42,452.57

TTTTTotototototaaaaalllll

s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
s mea
s mea
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s mea
ttttthhhhhrrrrro uo uo uo uo ugggggh oth oth oth oth otheheheheher  cr  cr  cr  cr  cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive  ie  ie  ie  ie  incncncncncooooomememememe
Derivative Financial Instruments
(((((AAAAA)))))

ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
ies mea
ies mea
FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies mea
Borrowings
Lease Liabilities
Security deposit
Book overdraft
Unpaid dividend
Trade payables*
Interest accrued but not due on borrowings*
Creditors for capital expenditure*
Others
(B)
(B)
(B)
(B)
(B)
A+B)
A+B)
TTTTTotototototaaaaal(l(l(l(l(A+B)
A+B)
A+B)

991.80
991.80
991.80
991.80
991.80
991.80

35,699.01
7,797.67
246.97
26.87
31.85
18,106.67
37.48
30.21
1,830.22
63,806.95
63,806.95
63,806.95
63,806.95
63,806.95
64,798.74
64,798.74
64,798.74
64,798.74
64,798.74

-
-----

-
7,797.67
246.97
26.87
31.85
18,106.67
37.48
30.21
1,830.22
28,107.94
28,107.94
28,107.94
28,107.94
28,107.94
28,107.94
28,107.94
28,107.94
28,107.94
28,107.94

-
-----

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

991.80
991.80
991.80
991.80
991.80
991.80

-
-
-
-
-
-
-
-
-
-----
991.80
991.80
991.80
991.80
991.80

-
-----

991.80
991.80
991.80
991.80
991.80
991.80

35,723.90
-
-
-
-
-
-
-
-
35,723.90
35,723.90
35,723.90
35,723.90
35,723.90
35,723.90
35,723.90
35,723.90
35,723.90
35,723.90

35,723.90
7,797.67
246.97
26.87
31.85
18,106.67
37.48
30.21
1,830.22
63,831.84
63,831.84
63,831.84
63,831.84
63,831.84
64,823.64
64,823.64
64,823.64
64,823.64
64,823.64

146

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019:
ch 31, 2019:
ch 31, 2019:
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
ue mea
isclos
ccccc))))) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
isclos
ch 31, 2019:
ch 31, 2019:
ue mea
isclos

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)
el 3)
el 3)

AsAsAsAsAssetsetsetsetsets mea
r lossssss
r los
r los
ofit o
s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrro uo uo uo uo ugggggh ph ph ph ph prrrrrofit o
ofit o
s mea
s mea
ofit or los
r los
ofit o
s mea
Investment in equity instruments
Mark to market forward contracts

(((((AAAAA)))))

FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
s mea
s mea
s mea
ttttthhhhhrrrrro uo uo uo uo ugggggh oth oth oth oth otheheheheher  cr  cr  cr  cr  cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive  ie  ie  ie  ie  incncncncncooooomememememe
Investment in mutual fund

(B)
(B)
(B)
(B)
(B)

FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
s mea
s mea
s mea
Investment in government securities
Security deposits
Interest accrued on fixed deposits
Deposits with original maturity of more than 12 months
Loans from related parties
Loans from others parties
Interest accrued on loan to related parties
Others
Trade receivable*
Cash and cash equivalents*
Other bank balances*

(C)
(C)
(C)
(C)
(C)

TTTTTotototototaaaaal  (l  (l  (l  (l  (A+B+C)
A+B+C)
A+B+C)
A+B+C)
A+B+C)

133.50
462.80

596.30
596.30
596.30
596.30
596.30

1,312.68

1,312.68
1,312.68
1,312.68
1,312.68
1,312.68

1,829.98
1,124.81
40.97
1,213.74
300.00
3,658.32
12.14
235.41
22,177.86
9,434.12
1,707.71

41,735.06
41,735.06
41,735.06
41,735.06
41,735.06

43,644.04
43,644.04
43,644.04
43,644.04
43,644.04

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

133.50
-

133.50
133.50
133.50
133.50
133.50

1,312.68

1,312.68
1,312.68
1,312.68
1,312.68
1,312.68

-
-
-
-
-
-
-

-
-
-

-----

-
-

-----

-

-----

1,829.98
1,124.81
40.97
1,213.74
300.00
3,658.32
12.14
235.41
22,177.86
9,434.12
1,707.71

41,735.06
41,735.06
41,735.06
41,735.06
41,735.06

-
462.80

462.80
462.80
462.80
462.80
462.80

-----

-
-
-
-
-
-
-

-
-
-

-----

ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019:
ch 31, 2019:
ch 31, 2019:
ies a
ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a
ies a
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
ue mea
isclos
ddddd))))) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
isclos
ch 31, 2019:
ch 31, 2019:
ies a
ue mea
isclos

41,735.06
41,735.06
41,735.06
41,735.06
41,735.06

1,446.18
1,446.18
1,446.18
1,446.18
1,446.18

462.80
462.80
462.80
462.80
462.80

ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
ies mea
ies mea
FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies mea
Borrowings
Security deposit
Book overdraft
Unpaid dividend
Trade payables*
Interest accrued but not due on borrowings*
Creditors for capital expenditure*
Others

As AAs AAs AAs AAs Attttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

31,592.83
222.00
150.48
26.83
18,106.47
24.67
849.25
2,424.77

-
222.00
150.48
26.83
18,106.47
24.67
849.25
2,424.77

53,397.30
53,397.30
53,397.30
53,397.30
53,397.30

21,804.47
21,804.47
21,804.47
21,804.47
21,804.47

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 2)
el 2)
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 3)
el 3)
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

-
-
-
-
-
-
-
-

-----

-
-
-
-
-
-
-
-

-----

31,601.74
-
-
-
-
-
-
-

31,601.74
222.00
150.48
26.83
18,106.47
24.67
849.25
2,424.77

31,601.74
31,601.74
31,601.74
31,601.74
31,601.74

53,406.21
53,406.21
53,406.21
53,406.21
53,406.21

TTTTTotototototaaaaalllll

133.50
462.80

596.30
596.30
596.30
596.30
596.30

1,312.68

1,312.68
1,312.68
1,312.68
1,312.68
1,312.68

1,829.98
1,124.81
40.97
1,213.74
300.00
3,658.32
12.14
235.41
22,177.86
9,434.12
1,707.71

41,735.06
41,735.06
41,735.06
41,735.06
41,735.06

43,644.04
43,644.04
43,644.04
43,644.04
43,644.04

TTTTTotototototaaaaalllll

-
-

-----

-

-----

-
-
-
-
-
-
-

-
-
-

-----

-----

Pearl Global Industries Limited     Annual Report 2019-20

147

Notes
to consolidated financial statements for the year ended March 31, 2020

* Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest
accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to
the short-term maturities of these instruments.

There have been no transfers between Level 1 and Level 2 during the period.

Specific valuation techniques used to value financial instruments. (refer note 42)

E 44 : FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL RL RL RL RL RIIIIISSSSSK MK MK MK MK MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT OT OT OT OT OBBBBBJJJJJECECECECECTTTTTIIIIIVVVVVEEEEES AS AS AS AS ANNNNND PD PD PD PD POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS
E 44 : FI
NONONONONOTTTTTE 44 : FI
E 44 : FI
E 44 : FI

The Group’s risk management policies are established to identify and analyse the risks faced by the group, to set appropriate risk
limits and controls and to monitor risks & adherence to limits. Risk management policies and systems are reviewed by the Risk
management Committee annually to reflect changes in market condition and operations of Companies included in the Group.
The Group principal financial liabilities comprises of trade and other payables, borrowings, current maturity of borrowings,
interest accrued and capital creditors. The main purpose of these financial liabilities is to finance the operations and to provide
guarantees to support its operations.
The  Group  principal  financial assets  includes  Investment  in  mutual  funds,  loans  to  related  parties,  security  deposits,  trade
receivables, cash and cash equivalents, deposits with bank, interest accrued in deposits, receivables from related and other parties
and interest accrued thereon.
The Group is exposed to credit risk, liquidity risk and market risk. The senior level management oversees the management of
these risks and is supported by Treasury department that advises on the appropriate financial risk governance framework.

AAAAA..... MMMMMaaaaarrrrrkkkkket ret ret ret ret riskiskiskiskisk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market  prices.  Market  risk  comprises  three  types  of  risk:  interest  rate  risk,  currency  risk  and  other  price  risk.  Financial
instruments affected by market risk are borrowings, short term deposits and derivative financial instruments.
The sensitivity analyses in the following sections relate to the position as at March 31, 2020 and March 31, 2019.

iiiii)))))

IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte re re re re riskiskiskiskisk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group exposure to the risk of changes in market interest rates relates primarily to
the long-term debt obligations with floating interest rates.
The Group main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to
interest rate risk. The Group manages its net exposure to interest rate risk related to borrowings, by balancing a proportion
of fixed rate and floating rate borrowing in its total borrowing portfolio. Currently, the Group’s borrowings are within
acceptable risk levels, as determined by the management, hence the Group has not taken any swaps to hedge the interest
rate risk.

IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte see see see see sennnnnsitsitsitsitsitivivivivivititititityyyyy
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the portion of
borrowings affected. With all other variables held constant, the Group profit before tax is affected through the impact
on floating rate borrowings, as follows:

MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se)
r der de
se/(
r der decccccrrrrreaeaeaeaeasesesesese DDDDDeeeeecccccrrrrreaeaeaeaease/(
se/(
IIIIIncncncncncrrrrreaeaeaeaease ose ose ose ose or de
se/(
iiiiin bn bn bn bn baaaaasis psis psis psis psis poooooiiiiinnnnntttttsssss
iiiiin pn pn pn pn prrrrrofitofitofitofitofit
+50
5.64
(5.64)
-50
+50
16.20
(16.20)
-50

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment, showing a significantly higher volatility than in prior years.

148

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

iiiiiiiiii))))) FFFFFooooorrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy ry ry ry ry riskiskiskiskisk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes
in exchange rates. Foreign currency risk senstivity is the impact on the profit before tax is due to changes in the fair
value of monetary assets and liabilities on unhedged exposures. The following tables demonstrate the sensitivity to a
reasonably possible change in applicable currency exchange rates, with all other variables held constant.

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

B.B.B.B.B. CCCCCrrrrreeeeedddddit rit rit rit rit riskiskiskiskisk

CCCCChhhhhaaaaannnnnggggges ies ies ies ies innnnn DDDDDeeeeecccccrrrrreaeaeaeaease/(
se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se)
se/(
se/(
se/(
ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx
ofit b
ofit b
 i i i i in pn pn pn pn prrrrrofit b
ofit b
(91.57)
91.57
295.00
(295.00)

exexexexexchchchchchaaaaannnnnggggge re re re re raaaaattttteeeee
+5%
-5%
+5%
-5%

Credit risk is the risk that counterparty will default on its contrctual obligations resulting in finance loss to the Company.
Credit risk arise from Cash and cash equivalents, deposit with banks, trade receivables and other financial assets measure at
amortised  cost.  The  Group  continuosly  monitors  defaults  of  customers  and  other  counterparties  and  incorporate  this
information into its credit risk control. The carrying amount of financial assets represents the maximum credit exposure.

ade reeeeeccccceiveiveiveiveivababababableslesleslesles
ade r
ade r
iiiii))))) TTTTTrrrrrade r
ade r

The ageing analysis of trade receivables as of the reporting date is as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Trade receivables as
of March 31, 2020
Trade receivables as
of March 31, 2019

NNNNNeiteiteiteiteitheheheheher pr pr pr pr paaaaasssssttttt
ue norrrrr
ue no
ue no
dddddue no
ue no
iiiiimmmmmpppppaaaaaiiiiirrrrreeeeeddddd
17,559.04

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
30 d30 d30 d30 d30 daaaaaysysysysys

30 t30 t30 t30 t30 to 90o 90o 90o 90o 90
dddddaaaaaysysysysys

o 180 MMMMMooooorrrrre te te te te thhhhhaaaaannnnn
o 180
o 180
90 t90 t90 t90 t90 to 180
o 180
180 daaaaaysysysysys
180 d
180 d
dddddaaaaaysysysysys
180 d
180 d

TTTTTotototototaaaaalllll

2,680.10

1,567.65

201.07

34.61

22,042.47

6,865.15

7,576.27

7,571.51

13.97

150.96

22,177.86

iiiiiiiiii))))) Exposure to Risk, in respect of the guarantees given by the Group: The disclosure in respect of credit risk exposures
which are not credit impaired or where there has not been a significant increase in credit risk since initial recognition
are as under:

ofileofile
----- QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de daaaaattttta aba aba aba aba abououououout ext ext ext ext exppppposososososuuuuurrrrre ae ae ae ae and mnd mnd mnd mnd maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile
ofileofile

e Giveeeeen tn tn tn tn tooooo
e Giv
GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeee Giv
e Giv
e Giv

Standard Chartered Bank,
Hongkong Branch

DDDDDetetetetetaaaaails of
ils of
ils of
ils of
ils of
ubsidiaiaiaiaiarrrrryyyyy
ubsid
ubsid
SSSSSubsid
ubsid
Pearl Global
(HK) Limited

PPPPPuuuuurprprprprpose of
ose of
ose of
ose of
ose of
GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee
Securing Credit
Facilities

AAAAAmoumoumoumoumounnnnnt at at at at as as as as as attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
USD 120.00 lakh
equivalent to
` 9,046.80 lakh

GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee
VVVVVaaaaalllllid Uid Uid Uid Uid Uptptptptptooooo
February 05,
2021

Standard Chartered Bank,
Hongkong Branch

Pearl Global
(HK) Limited

Standard Chartered Bank,
Bangladesh Branch

Norp Knit
Industries Limited

Securing Credit
Facilities

USD 200.00 lakh November 10,
2021

equivalent to
` 15,078.00 lakh
Securing Credit BDT 9,000.00 lakh
equivalent to
` 7,967.43 lakh

Facilities

October 11,
2021

Pearl Global Industries Limited     Annual Report 2019-20

149

Notes
to consolidated financial statements for the year ended March 31, 2020

-

PPPPPooooolllllicicicicicy of my of my of my of my of maaaaannnnnaaaaagggggiiiiinnnnng rg rg rg rg riskiskiskiskisk::::: The Group considers the probability of default upon initial recognition and whether
there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess
whether there is a significant increase in credit risk the Group compares the risk of default as at the reporting date
with the risk of default as at the date of initial recognition. The Group considers reasonable and supportive forward-
looking information such as significant changes in the value of guarantee or in the quality of exposure or credit
enhancements.

sh depppppositositositositositsssss
sh de
iiiiiiiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts as as as as and cnd cnd cnd cnd caaaaash de
sh de
sh de

Credit risk from balances with banks and financial institutions is managed by the treasury department in accordance
with the policy. Investments of surplus funds are made only with approved counterparties and within credit limits
assigned to each counterparty. Counterparty credit limits are reviewed by the Board of Directors on an annual basis,
and may be updated throughout the year subject to approval of the finance committee. The limits are set to minimise
the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

C.C.C.C.C. LLLLLiqiqiqiqiquuuuuidididididititititity ry ry ry ry riskiskiskiskisk

Liquidity risk is the risk that the Group may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.

The objective is to, maintain optimum levels of liquidity to meet its cash and collateral requirements both under normal &
stressed conditions.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of fund
through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

These facilities and limits varry at Company level (forming part of Group) and taks into account, future cash flows and the
liquidity in which the entity operates.

ies  baaaaasesesesesed  od  od  od  od  on  cn  cn  cn  cn  cooooonnnnntttttrrrrractactactactactuuuuuaaaaal  ul  ul  ul  ul  undndndndndiscisciscisciscououououounnnnnttttteeeeeddddd
ies  b
ies  b
he  finnnnnaaaaancianciancianciancial  ll  ll  ll  ll  liabiabiabiabiabilililililititititities  b
he  fi
he  fi
ofile  of  t
ofile  of  t
ises  the  mhe  mhe  mhe  mhe  maaaaatttttuuuuurrrrrititititity  py  py  py  py  prrrrrofile  of  t
ises  t
ises  t
TTTTThe  the  the  the  the  tababababable  ble  ble  ble  ble  beloeloeloeloelow  sw  sw  sw  sw  suuuuummmmmmmmmmaaaaarrrrrises  t
ofile  of  the  fi
ies  b
he  fi
ofile  of  t
ises  t
pppppaaaaayyyyymememememennnnntttttsssss.....

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

Borrowings
Lease Liabilities
Current Maturities of long term borrowings
Trade payables
Other financial liabilities
TTTTTotototototaaaaalllll

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Borrowings
Current Maturities of long term borrowings
Trade payables
Other financial liabilities
TTTTTotototototaaaaalllll

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
3 monnnnnttttthhhhhsssss
3 mo
3 mo
3 mo
3 mo
25,715.32
188.20
692.30
18,106.67
1,956.63
46,659.12
46,659.12
46,659.12
46,659.12
46,659.12

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
3 monnnnnttttthhhhhsssss
3 mo
3 mo
3 mo
3 mo
23,486.07
420.22
18,106.47
3,476.00
45,488.76
45,488.76
45,488.76
45,488.76
45,488.76

3 t3 t3 t3 t3 to 12o 12o 12o 12o 12
momomomomonnnnnttttthhhhhsssss
97.39
621.99
2,076.90
-
991.80
3,788.08
3,788.08
3,788.08
3,788.08
3,788.08

3 t3 t3 t3 t3 to 12o 12o 12o 12o 12
momomomomonnnnnttttthhhhhsssss
-
1,260.67
-
-
1,260.67
1,260.67
1,260.67
1,260.67
1,260.67

1 t1 t1 t1 t1 to 5o 5o 5o 5o 5
yeayeayeayeayearsrsrsrsrs
9,886.29
2,901.45
-
-
179.90
12,967.64
12,967.64
12,967.64
12,967.64
12,967.64

1 t1 t1 t1 t1 to 5o 5o 5o 5o 5
yeayeayeayeayearsrsrsrsrs
8,106.76
-
-
154.93
8,261.69
8,261.69
8,261.69
8,261.69
8,261.69

> 5 yearsrsrsrsrs
> 5 yea
> 5 yea
> 5 yea
> 5 yea

TTTTTotototototaaaaalllll

-
4,086.02
-
-
67.07
4,153.09
4,153.09
4,153.09
4,153.09
4,153.09

35,699.00
7,797.66
2,769.20
18,106.67
3,195.40
67,567.93
67,567.93
67,567.93
67,567.93
67,567.93

> 5 yearsrsrsrsrs
> 5 yea
> 5 yea
> 5 yea
> 5 yea

TTTTTotototototaaaaalllll

-
-
-
67.07
67.07
67.07
67.07
67.07
67.07

31,592.83
1,680.89
18,106.47
3,698.00
55,078.19
55,078.19
55,078.19
55,078.19
55,078.19

150

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

E 45 : SEGMMMMMEEEEENNNNNT IT IT IT IT INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN
E 45 : SEG
NONONONONOTTTTTE 45 : SEG
E 45 : SEG
E 45 : SEG

a)a)a)a)a) The operating segments are established on the basis of those components of the group that are evaluated regularly by the
Executive Committee (the ‘Chief Operating Decision Maker’ as defined in Ind AS 108 - ‘Operating Segments’), in deciding
how to allocate resources and in assessing performance. The Group has presented segment information on geographical
basis in the consolidated financial statements.

Summary of segment Information as at and for the year ended March 31, 2020 and March 31, 2019 is as follows:

BBBBBaaaaannnnngggggllllladesh
adesh
adesh
adesh
adesh

HHHHHooooonnnnng Kg Kg Kg Kg Kooooonnnnnggggg

IIIIIndndndndndiaiaiaiaia

OOOOOttttthehehehehersrsrsrsrs UUUUUnnnnn-----aaaaallllllololololocccccababababablelelelele

TTTTTotototototaaaaalllll

EEEEEllllliiiiimmmmmiiiiinnnnnaaaaatttttioioioioionnnnn

TTTTTotototototaaaaalllll

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Segment Sales

Inter Segment Sales

9,094.54

71,554.08

70,365.19

17,498.77

(9,853.87)

(70,457.38)

(79,676.26)

(15,762.27)

45,567.81

20,266.87

12,168.14

(49,897.16)

(17,748.70)

(4,401.20)

-

-

TTTTTotototototaaaaal Sl Sl Sl Sl Seeeeegggggmememememennnnnt St St St St Saaaaaleslesleslesles

54,662.35
54,662.35
54,662.35
54,662.35
54,662.35

91,820.95
91,820.95
91,820.95
91,820.95
91,820.95

82,533.33
82,533.33
82,533.33
82,533.33
82,533.33

17,498.77
17,498.77
17,498.77
17,498.77
17,498.77

Other Income

(59,751.02)
(59,751.02)
(59,751.02)
(59,751.02)
(59,751.02)

(88,206.09)
(88,206.09)
(88,206.09)
(88,206.09)
(88,206.09)

(84,077.46)
(84,077.46)
(84,077.46)
(84,077.46)
(84,077.46)

(15,762.27)
(15,762.27)
(15,762.27)
(15,762.27)
(15,762.27)

764.38

(560.74)

1,177.23

(462.16)

3,353.73

(2,683.87)

-

-

TTTTTotototototaaaaal Sl Sl Sl Sl Seeeeegggggmememememennnnnt Rt Rt Rt Rt Reeeeevvvvveeeeennnnnueueueueue

55,426.73
55,426.73
55,426.73
55,426.73
55,426.73

92,998.18
92,998.18
92,998.18
92,998.18
92,998.18

85,887.06
85,887.06
85,887.06
85,887.06
85,887.06

17,498.77
17,498.77
17,498.77
17,498.77
17,498.77

Total Revenue of each segment as a
percentage of total revenue of all segment

Total Segment Operative Profit

Depreciation

Total Segment Result before Interest & Taxes

Total EBIT of each segment as a percentage
of total EBIT of all segment

Net Financing Cost

Income Tax Expenses

ofit for tr tr tr tr the Yhe Yhe Yhe Yhe Yeaeaeaeaearrrrr
ofit fo
ofit fo
PPPPPrrrrrofit fo
ofit fo

(60,311.77)
(60,311.77)
(60,311.77)
(60,311.77)
(60,311.77)

(88,668.24)
(88,668.24)
(88,668.24)
(88,668.24)
(88,668.24)

(86,761.33)
(86,761.33)
(86,761.33)
(86,761.33)
(86,761.33)

(15,762.27)
(15,762.27)
(15,762.27)
(15,762.27)
(15,762.27)

22.01

36.93

34.11

6.95

(23.98)

3,369.98

(35.26)

1,937.98

(34.50)

5,308.26

(6.26)

913.63

(3,524.76)

(1,286.83)

(7,905.74)

(1,038.03)

1,506.88

(896.66)

1,863.10

590.53

(114.56)

1,347.44

1,761.66

(1,290.15)

3,546.59

(2,628.10)

(1,172.27)

(6,615.59)

25.43

18.39

48.41

345.33

(288.12)

568.31

(749.91)

7.77

(23.54)

(10.50)

(59.26)

(6.72)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

SSSSSeeeeegggggmememememennnnnt As
t As
t As
t Assetsetsetsetsetsssss
t As

22,027.81

35,508.37

55,691.95

5,504.42

6,498.15

125,230.70

Segment Assets as a percentage
of Total assets of all segments

(17,903.18)

(23,791.26)

(54,032.10)

(8,933.31)

(5,480.25)

(110,140.10)

17.59

28.35

44.47

4.40

5.19

100.00

(16.25)

(21.60)

(49.06)

(8.11)

(4.98)

(100.00)

168,512.58

(175,749.78)

-

-

168,512.58

(175,749.78)

78,002.82

78,002.82

(72,047.06)

(72,047.06)

-

-

246,515.40
246,515.40
246,515.40
246,515.40
246,515.40

78,002.82
78,002.82
78,002.82
78,002.82
78,002.82

168,512.58
168,512.58
168,512.58
168,512.58
168,512.58

(247,796.84)
(247,796.84)
(247,796.84)
(247,796.84)
(247,796.84)

(72,047.06)
(72,047.06)
(72,047.06)
(72,047.06)
(72,047.06)

(175,749.78)
(175,749.78)
(175,749.78)
(175,749.78)
(175,749.78)

5,295.34

(3,706.77)

389.85

4,905.49

(313.95)

(3,392.82)

251,810.74
251,810.74
251,810.74
251,810.74
251,810.74

78,392.67
78,392.67
78,392.67
78,392.67
78,392.67

173,418.07
173,418.07
173,418.07
173,418.07
173,418.07

(251,503.61)
(251,503.61)
(251,503.61)
(251,503.61)
(251,503.61)

(72,361.00)
(72,361.00)
(72,361.00)
(72,361.00)
(72,361.00)

(179,142.61)
(179,142.61)
(179,142.61)
(179,142.61)
(179,142.61)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100.00

(100.00)

11,529.85

(13,755.36)

4,204.40

(2,589.48)

7,325.45

(11,165.87)

100.00

(100.00)

-

-

-

-

-

-

-

-

11,529.85

(13,755.36)

4,204.40

(2,589.48)

7,325.45

(11,165.87)

-

-

4,201.04

(2,871.95)

950.58

(1,583.01)

2,172.83
2,172.83
2,172.83
2,172.83
2,172.83

(6,710.92)
(6,710.92)
(6,710.92)
(6,710.92)
(6,710.92)

125,230.70

(110,140.10)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Pearl Global Industries Limited     Annual Report 2019-20

151

Notes
to consolidated financial statements for the year ended March 31, 2020

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

SSSSSeeeeegggggmememememennnnnt Lt Lt Lt Lt Liabiabiabiabiabilililililitititititiesiesiesiesies

Segment Liabilities as a percentage
of Total Liabilities of all segments

SSSSSeeeeegggggmememememennnnnt Ct Ct Ct Ct Caaaaapppppitititititaaaaal El El El El Emmmmmppppplololololoyeyeyeyeyeddddd

Segment Capital Employed as a percentage
of Total capital employed of all segments

l  Expppppeeeeendndndndndititititituuuuurrrrreeeee
l  Ex
CCCCCaaaaapppppitititititaaaaal  Ex
l  Ex
l  Ex

Segment Capital Expenditure as a percentage
of Total capital expenditure of all segments

DDDDDeeeeeppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn

BBBBBaaaaannnnngggggllllladesh
adesh
adesh
adesh
adesh

HHHHHooooonnnnng Kg Kg Kg Kg Kooooonnnnnggggg

IIIIIndndndndndiaiaiaiaia

OOOOOttttthehehehehersrsrsrsrs UUUUUnnnnn-----aaaaallllllololololocccccababababablelelelele

TTTTTotototototaaaaalllll

EEEEEllllliiiiimmmmmiiiiinnnnnaaaaatttttioioioioionnnnn

TTTTTotototototaaaaalllll

12,479.10

3,973.85

17,536.66

1,449.43

38,437.83

73,876.87

(11,120.43)

(1,707.93)

(13,762.46)

(1,584.21)

(33,734.30)

(61,909.33)

16.89

5.38

23.74

1.96

52.03

100.00

(17.96)

9,548.71

(2.76)

(22.23)

(2.56)

(54.49)

(100.00)

31,534.52

38,155.29

4,054.99

(31,939.68)

51,353.83

(6,782.75)

(22,083.33)

(40,269.65)

(7,349.11)

28,344.84

(48,140.00)

18.59

61.41

74.30

7.90

(62.20)

100.00

(14.09)

1,896.23

(45.87)

1,970.88

(83.65)

1,564.37

(15.27)

248.53

(1,244.68)

(4,694.66)

(2,042.59)

(915.28)

33.38

34.70

27.54

4.38

(13.99)

1,506.88

(896.66)

(52.77)

590.53

(22.96)

1,761.66

(10.28)

345.33

(114.56)

(1,290.15)

(288.13)

58.88

-

-

-

-

-

-

(100.00)

5,680.01

(8,897.21)

100.00

(100.00)

4,204.40

(2,589.50)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

73,876.87

(61,909.33)

-

-

51,353.83

(48,140.00)

-

-

5,680.01

(8,897.21)

-

-

4,204.40

(2,589.50)

bbbbb))))) The Group revenue from sale of garments to external customer are as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Local Customers
Foreign Customers

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

8,403.09
154,922.70

6,019.11
164,750.91

ccccc))))) Non- current assets are located within India and outside India:

 (Amount in ` Lakh, unless otherwise stated)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

t Assetsetsetsetsetsssss
t As
NNNNNooooon Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeennnnnt As
t As
t As
within India
-
outside India
-

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

24,818.27
29,495.63

22,484.64
20,975.14

ddddd))))) Revenue from major customer: During the year the Group generates 90% of its external revenues from thirteen customers.

E 46 : CONNNNNTTTTTIIIIINNNNNGGGGGEEEEENNNNNT LT LT LT LT LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND CD CD CD CD COOOOOMMMMMMMMMMIIIIITTTTTMMMMMEEEEENNNNNTSTSTSTSTS
E 46 : CO
NONONONONOTTTTTE 46 : CO
E 46 : CO
E 46 : CO

a)a)a)a)a) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities (
ies (
ies (
ies (TTTTTo to to to to the ex
he ex
he ex
he exttttteeeeennnnnt not p
t not p
t not p
t not prrrrrovovovovovideideideideided fod fod fod fod for)r)r)r)r)
ies (
he ex
t not p

I

The Group has reviewed all its pending claims, litigations and other proceedings and has adequately provided for wherever
required. However, wherever it is difficult to estimate the timings of cash outflows, if any, in respect of the above as it is
determinable only on receipt of judgement/decisions pending with various forums/authorities, the Group has disclosed the
same as Contingent Liabilities (pending resolution of the respective proceedings). The Group does not expect the outcome
of these proceedings to have a material or adverse effect on financial position of the Group. Also, the Group does not expect
any reimbursements in respect of the below contingent liabilities.

152

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

-

-

(i) Claims against the Group not acknowleged as debts corresponding to :
Tax Demand as per Sec 143(1) of Income Tax Act , 1961
(with respect to Assessment Year 2014-15)
Tax Demand as per Sec 143(1) of Income Tax Act , 1961
(with respect to Assessment Year 2015-16)
Tax Demand as per Sec 143(3) of Income Tax Act , 1961
(with respect to Assessment Year 2016-17) - Rectification
application has been filled with A.O
Tax Demand as per Sec 143(3) of Income Tax Act , 1961
(with respect to Assessment Year 2017-18)
- Demand as per TDS (TRACES) portal - CPC

-

-

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

-

8.30

38.83

16.61

16.52

1.25

98.01

38.83

-

18.43

(ii) Several Legal Cases of labour pending at labour Court,  Civil  Court  and  High  Court.  The  Group  has  assesed  and
believe that none of these cases, either individually or in aggregate, are expected to have any material adverse effect on
its financial statements. However, Since it is difficult to estimate the timings of the cash outflows, if any, no further
provision or seperate disclosure is made in books of accounts.

(iii) As per the order dated July 13, 2016 issued by Hon’ble Madras High Court, minimum wages shall be paid to the
employees retrospectively from December 2014 to June 2016. However, the management is of the view that the wages
have to be paid only to the employees working presently in the Group and also no PF & ESI is required to be deducted.
Accordingly, the minimum wages, ESI and PF of past employees of ` 288.51 lakh, ` 8.06 lakh and ` 69.25 lakh respectively
has not been recorded in books of account. Further, Holding Company has also not accounted for the PF contribution
of ` 65.33 lakh and ESI contribution of ` 12.88 lakh due on the wage arrears paid to the present employees during the
year ended March 31, 2017. The status of this contingent liability remain unchanged as at reporting date i.e. March 31,
2020.

II

Irrevocable letter of credit (net of margin) outstanding with banks

III Bank Guarantee given to government authorities

IV Counter Guarantees given by the Group to the Sales Tax Department
over which Key Managerial Personnel have Significant influence
-
-

For enterprise
For others

5,862.96

224.29

1.00
0.50

11,569.88

147.06

1.00
0.50

V The Group has given the corporate guarantees to banks on behalf of its foreign subsidiaries (Refer Note No. 44)

VI The  Group  is  in  the  process  of  evaluating  the  impact  of  the  recent  Supreme  Court  Judgment  in  case  of  “Vivekananda
Vidyamandir and Others Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular
No. C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund
Organisation in relation to non-exclusion of certain allowances from the definition of “basic wages” of the relevant employees
for the purposes of determining contribution to provident fund under the Employees’ Provident Funds & Miscellaneous
Provisions Act, 1952.

Since there are numerous interpretative issues relating to the judgement, the management has concluded to update provision
in books of accounts on receiving further clarity on the subject.

Pearl Global Industries Limited     Annual Report 2019-20

153

Notes
to consolidated financial statements for the year ended March 31, 2020

bbbbb))))) CoCoCoCoCommmmmmmmmmitititititmememememennnnntttttsssss

Capital Commitment: Estimated amount of contracts remaining
to be executed on the capital account (net of capital advances)

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
198.72

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
99.44

The Group does not have any other long term Commitments or material non cancellable contractual commitments, which
may have a material impact on the standalone financial statement.

E 47 : RELLLLLAAAAATTTTTEEEEED PD PD PD PD PAAAAARRRRRTTTTTY TY TY TY TY TRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOONSNSNSNSNS
E 47 : RE
E 47 : RE
NONONONONOTTTTTE 47 : RE
E 47 : RE

t of relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies
t of r
t of r
AAAAA..... LLLLLisisisisist of r
t of r

me of the Rhe Rhe Rhe Rhe Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy
me of t
me of t
NNNNNaaaaame of t
e of Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp
e of R
e of R
NNNNNaaaaatttttuuuuurrrrre of R
me of t
e of R
DDDDDooooomesmesmesmesmesttttticicicicic
ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich Keeeeeyyyyy
ise ov
ise ov
EEEEEnnnnnttttteeeeerprprprprprrrrrise ov
ise ov
MMMMMaaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel
Creative Arts Education Society
cise Signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee Little People Education Society
cise Sig
cise Sig
exexexexexeeeeerrrrrcise Sig
cise Sig

Nim International Commerce LLP
PDS Multinational Fashions Limited
Pearl Wears
PS Arts Private Limited
PSS Estates LLP
Vau Apparels LLP
rseasssss
rsea
rsearsea
OOOOOvvvvveeeeersea
360 Notch Ltd (Formely known as Poeticgem Australia Ltd)
Blueprint Design Limited
Casa Forma Limited
Clover Collection Limited Formerly DS Manufacturing Limited;
Designed and Sourced Limited)
Clover Collections FZCO (w.e.f. 20.02.2020)
Design Arc Asia Limited [(Formerly Design Arc. Limited)
( Design Arc. Limited Formerly Nor France Manufacturing Company Ltd)]
Design Arc Europe Limited (Formerly Nor Europe Manufacturing Limited
Design Arc FZCO (W.e.f 17.01.2019)
Design Arc UK Limited
Digital Ecom Techno Private Limited
Digital Internet Technologies Limited
Fabric & Trims Limited
Fareast Vogue Limited
Funky Brands Company Limited (Formerly Fullhouse Manufacturing Limited;
Nor Delhi Manufacturing Limited
FX Import Company Limited
FX Import Hongkong Limited
Global Textiles Group Limited

154

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

Green Apparel Industries Ltd
Green Smart Shirts Limited
Grupo Extremo SUR S.A
Grupo Sourcing Limited (Bangladesh)
Grupo Sourcing Limited (Hongkong)
Jcraft Array Limited (w.e.f. 12.04.2018)
JJ Star Industrial Limited
JSM Trading (FZE.)
KIK Service Unit Limited (w.e.f. 22.10.2019)
Kindred Brands Ltd (Formerly NW Far-east Limited)
Kindred Fashion Limited (w.e.f. 23.10.2018)
Kleider Sourcing FZCO (w.e.f 17.01.2019)
Kleider Sourcing Hongkong Limited
Kleider Sourcing Limited
Krayon Sourcing Limited (Formerly Souring Solutions HK Limited)
Lilly and Sid Ltd (w.e.f. 10.03.2020)
Multinational OSG Services Bangladesh Limited
Multinational Textile Group Limited
MultiTech Venture Ltd(Mauritius)
Nor Europe SPA
Nor India Manufacturing Company Limited
Nor Lanka Manufacturing Colombo Limited
Nor Lanka Manufacturing Limited
Norlanka Progress Pvt.Ltd
Norwest Industries Limited
Pacific Logistics Limited
Parc Designs Pvt. Limited (Closed on 30.09.2019)
PDS Far-east Limited
PDS Asia Star Corporation Limited
PDS Far East USA Inc.
PDS Global Investments Limited
PDS Trading (Shanghai) Company Limited
PDS Ventures Limited (w.e.f. 03.07.2018)
PG Group Limited
PG Home Group Limited
PG Home Group SPA (Formerly Pearl GES Home Group SPA)
PG Shanghai Mfg Company Limited
Poetic Brands Limited
Poetic Knitwear Limited
Poeticgem International Limited
Poeticgem Limited

Pearl Global Industries Limited     Annual Report 2019-20

155

Notes
to consolidated financial statements for the year ended March 31, 2020

Progress Apparels(Bangladesh) Ltd
Progress Manufacturing Group Ltd
Razamtazz Limited
Recovered Clothing Limited (w.e.f 24.07.2018)
Redwood Internet Ventures Limited
Rising Asia Star Hongkong Limited (Formerly Techno Manufacturing Limited)
SACB Holdings Limited
Simple Approach (Canada) Limited
Simple Approach Limited
Smart Notch Industrial Limited
Smart Notch Limited (w.e.f. 20.04.2018)
Sourcing East West Limited
Sourcing Solutions Limited
Sourcing Solutions Limited
Spring Near East FZCO (w.e.f. 17.01.2019)
Spring Near East Manufacturing Company Limited
Styleberry Limited
Superb Mind Holdings Limited
Techno Design Gmbh
Techno Design HK Limited (Formerly DPOD Manufacturing Limited
Technocian Fashion Private Limited (w.e.f. 20.03.2019)
Transnational Textile Group Limited
Twin Asia FZCO (w.e.f. 17.01.2019)
Twin Asia Limited
Zamira Denim Lab Limited
Zamira Fashion Limited
Zamira Fashion Limited Zhongshan

KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Mr. Deepak Seth
P) & theiheiheiheiheir rr rr rr rr relelelelelaaaaatttttiviviviviveeeee
P) & t
(K(K(K(K(KMMMMMP) & t
P) & t
P) & t

Chariman
Vice Chairman & Managing Director
Mr. Pulkit Seth
Whole-Time Director
Mrs. Shifalli Seth
Mr. Vinod Vaish (till 30.04.2020)
Whole-Time Director
Mr. Kashmir Singh Rathour(from 28.07.2020) Chief Financial Officer
Chief Financial Officer
Mr. Raghav Garg (till 30.06.2020)
Company Secretary
Mr. Sandeep Sabharwal
Independent Director
Mr. Chittranjan Dua
Independent Director
Mr. Rajendra Kumar Aneja
Independent Director
Mr. Anil Nayar
Mr. Abhishek Goyal
Independent Director
Mrs. Madhulika Bhupatkar (from 18-03-2020) Independent Director

156

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

sactioioioioionnnnnsssss:::::
sact
e of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttties Ties Ties Ties Ties Trrrrraaaaannnnnsact
sact
e of R
Disclosuuuuurrrrre of R
e of R
Disclos
B.B.B.B.B. Disclos
Disclos
sact
e of R
Disclos

s Signnnnnificificificificificaaaaannnnnt It It It It Innnnnflflflflflueueueueuencncncncnceeeee
s Sig
ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich KMMMMMP hP hP hP hP haaaaas Sig
s Sig
ise ov
(i) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov
ise ov
s Sig
ise ov

(Amount in ` Lakh, unless otherwise stated)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Expenses paid by the Group on their behalf
Expenses paid by them on behalf of the Group
Interest income

losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee
losi
losi
CCCCClosi
losi

Amount receivable
Loan & advances receivable (inc. interest)

(ii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnel (Knel (Knel (Knel (Knel (KMMMMMP)P)P)P)P)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Remuneration paid
EPF paid
Expenses incurred by him on behalf of the Group
Directors sitting fees

losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee
losi
losi
CCCCClosi
losi

Trade Payable - Payable to KMP

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

-
3.00
30.00

0.61
4.37
30.00

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

-
306.71

4.29
306.66

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

301.51
1.06
30.09
1.60

277.89
1.11
69.78
1.50

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

0.92

16.85

C. Disclosure of Material Transactions: Related Parties having more than 10% interest in each transaction in the ordinary

course of business

s signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee
s sig
ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich KMMMMMP hP hP hP hP haaaaas sig
s sig
ise ov
(i) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov
ise ov
s sig
ise ov

(Amount in ` Lakh, unless otherwise stated)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

ExExExExExpppppeeeeennnnnses p
he Grouououououp op op op op on tn tn tn tn theiheiheiheiheir br br br br behehehehehaaaaalllllfffff
he Gr
ses paaaaaid bid bid bid bid by ty ty ty ty the Gr
he Gr
ses p
ses p
he Gr
ses p
Norwest Industries Limited

ExExExExExpppppeeeeennnnnses p
he Grouououououppppp
he Gr
he Gr
f of t
ses paaaaaid bid bid bid bid by ty ty ty ty thehehehehem om om om om on bn bn bn bn behehehehehaaaaalllllf of t
f of t
ses p
ses p
f of the Gr
he Gr
f of t
ses p
PDS Multinational Fashion Limited

IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe
PDS Multinational Fashion Limited

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

-

3.00

30.00

0.61

4.37

30.00

Pearl Global Industries Limited     Annual Report 2019-20

157

Notes
to consolidated financial statements for the year ended March 31, 2020

(ii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion pn pn pn pn paaaaaididididid
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Rajkumar Chawla
Mr. Vinod Vaish
Mr. Sandeep Sabharwal
Mr. Raghav Garg

EEEEEPPPPPF pF pF pF pF paaaaaididididid
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Rajkumar Chawla
Mr. Vinod Vaish
Mr. Sandeep Sabharwal
Mr. Raghav Garg

he Grouououououppppp
he Gr
he Gr
f of t
f of t
ses incuncuncuncuncurrrrrrrrrreeeeed bd bd bd bd by hy hy hy hy hiiiiim om om om om on bn bn bn bn behehehehehaaaaalllllf of t
ses i
ses i
ExExExExExpppppeeeeennnnnses i
f of the Gr
he Gr
f of t
ses i
Mr. Raj Kumar Chawla
Mr. Vinod Vaish
Mr. Sandeep Sabharwal
Mr. Raghav Garg

rs sittttttiiiiinnnnng Fg Fg Fg Fg Feeeeeeseseseses:::::
rs sit
rs sit
DiDiDiDiDirrrrreeeeectctctctctooooors sit
rs sit
Mr. Deepak Seth
Mr. Anil Nayar
Mr. Chittranjan Dua
Mr. Abhishek Goyal
Mr. Rajendra Aneja

165.00
68.75
-
16.44
16.04
35.28

0.20
0.20
-
0.22
0.22
0.22

-
16.38
4.46
9.25

0.20
0.50
0.30
0.50
0.10

120.00
75.00
44.88
16.44
15.63
5.94

0.22
0.22
0.18
0.22
0.22
0.05

50.07
12.34
6.35
1.02

0.10
0.40
0.40
0.50
0.10

sactioioioioionnnnns ws ws ws ws wititititith rh rh rh rh relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies
sact
s of trrrrraaaaannnnnsact
sact
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(iii) TTTTTeeeeerrrrrmmmmms as as as as and cnd cnd cnd cnd cooooondndndndnditititititioioioioionnnnns of t
s of t
sact
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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.

NONONONONOTTTTTE 48 : FO
T 2013, BY WY WY WY WY WAAAAAY OY OY OY OY OFFFFF
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E 48 : FOR DIR DIR DIR DIR DISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEES MS MS MS MS MAAAAANNNNNDDDDDAAAAATTTTTEEEEED BD BD BD BD BY SCY SCY SCY SCY SCHHHHHEEEEEDDDDDUUUUULLLLLE IE IE IE IE IIIIIII OI OI OI OI OF COF COF COF COF COMMMMMPPPPPAAAAANNNNNIIIIIEEEEES ACS ACS ACS ACS ACT 2013, B
T 2013, B
E 48 : FO
E 48 : FO
T 2013, B
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AAAAADDDDDDDDDDIIIIITTTTTIIIIIOOOOONNNNNAAAAAL IL IL IL IL INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN, R, R, R, R, REEEEEFEFEFEFEFER BR BR BR BR BEEEEELLLLLOOOOOWWWWW:::::

(Amount in ` Lakh, unless otherwise stated)

.  2018-19
.  2018-19
FFFFF.....YYYYY.  2018-19
.  2018-19
.  2018-19
losloss)s)s)s)s)
loslos
ofit/(
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ShShShShShaaaaarrrrre  ie  ie  ie  ie  in  pn  pn  pn  pn  prrrrrofit/(
ofit/(los
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s i.e.e.e.e.e.
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s i.
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tttttotototototaaaaal  ll  ll  ll  ll  liabiabiabiabiabilililililitititititiesiesiesiesies

ShShShShShaaaaarrrrre ie ie ie ie in otn otn otn otn otheheheheherrrrr
CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee
IIIIIncncncncncooooomememememe

ShShShShShaaaaarrrrre ie ie ie ie in tn tn tn tn totototototaaaaalllll
CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee
IIIIIncncncncncooooomememememe

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
net  assssssetsetsetsetsetsssss
net  a
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AAAAAmoumoumoumoumounnnnnttttt

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
PPPPPrrrrrofitofitofitofitofit

AAAAAmoumoumoumoumounnnnnttttt

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
PPPPPrrrrrofitofitofitofitofit

AAAAAmoumoumoumoumounnnnnttttt

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
PPPPPrrrrrofitofitofitofitofit

AAAAAmoumoumoumoumounnnnnttttt

67.29

31,618.47

32.04

2,150.19

8.95

131.87

27.88

2,282.06

0.00
0.06

24.66
12.97
18.15

1.32
27.64

(0.01)
(4.61)

(0.68)
(309.34)

11,587.79
6,095.14
8,528.04

57,858.40
57,858.40
57,858.40
57,858.40
57,858.40

27.85
14.49
5.83

1,868.69
972.68
391.03

5,072.57
5,072.57
5,072.57
5,072.57
5,072.57

-
-

36.96
19.22
34.87

-
-

(0.01)
(3.78)

(0.68)
(309.34)

544.43
283.03
513.62

1,472.95
1,472.95
1,472.95
1,472.95
1,472.95

29.49
15.34
11.05

2,413.12
1,255.71
904.65

6,545.52
6,545.52
6,545.52
6,545.52
6,545.52

(23.14)

(10,871.66)

24.41

1,638.35

-

-

20.02

1,638.35

46,986.74
46,986.74
46,986.74
46,986.74
46,986.74

1,153.26

48,140.00
48,140.00
48,140.00
48,140.00
48,140.00

6,710.92
6,710.92
6,710.92
6,710.92
6,710.92

17.10

6,728.02
6,728.02
6,728.02
6,728.02
6,728.02

1,472.95
1,472.95
1,472.95
1,472.95
1,472.95

(100.94)

1,372.01
1,372.01
1,372.01
1,372.01
1,372.01

8,183.87
8,183.87
8,183.87
8,183.87
8,183.87

(83.84)

8,100.03
8,100.03
8,100.03
8,100.03
8,100.03

me of the Ehe Ehe Ehe Ehe Ennnnntttttitititititiesiesiesiesies
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Pearl Global Industries Limited

ubsidiaiaiaiaiarrrrryyyyy:::::
ubsid
ubsid
SSSSSubsid
ubsid
Indian
-
Pearl Global Kausal Vikas Limited
Pearl Apparel Fashions Limited
-
Norp Knit Industries Limited
Pearl Global Far East Limited
Pearl Global (HK) Limited

Foreign

SSSSSubtubtubtubtubtotototototaaaaalllll

Intercompany Elimination &
Consolidation Adjustments

TTTTTotototototaaaaalllll

Non Controlling Interest in subsidiaries

GrGrGrGrGraaaaand  Tnd  Tnd  Tnd  Tnd  Totototototaaaaalllll

Pearl Global Industries Limited     Annual Report 2019-20

159

Notes
to consolidated financial statements for the year ended March 31, 2020

(Amount in ` Lakh, unless otherwise stated)

FFFFF.....YYYYY.  2019-20
.  2019-20
.  2019-20
.  2019-20
.  2019-20
losloss)s)s)s)s)
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et Assetsetsetsetsets i.
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NNNNNet As
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s i.
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ShShShShShaaaaarrrrre ie ie ie ie in otn otn otn otn otheheheheherrrrr
CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee
IIIIIncncncncncooooomememememe

ShShShShShaaaaarrrrre ie ie ie ie in tn tn tn tn totototototaaaaalllll
CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee
IIIIIncncncncncooooomememememe

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
net  assssssetsetsetsetsetsssss
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AAAAAmoumoumoumoumounnnnnttttt

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
PPPPPrrrrrofitofitofitofitofit

AAAAAmoumoumoumoumounnnnnttttt

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
PPPPPrrrrrofitofitofitofitofit

AAAAAmoumoumoumoumounnnnnttttt

As a % of
As a % of
As a % of
As a % of
As a % of
cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
PPPPPrrrrrofitofitofitofitofit

AAAAAmoumoumoumoumounnnnnttttt

61.11

30,587.92

23.05

500.89

(25.64)

(557.30)

(1.30)

(56.43)

0.00
0.01
0.00

26.99
14.38
21.68

0.75
3.91
0.76

13,509.45
7,200.70
10,851.98

62,155.47
62,155.47
62,155.47
62,155.47
62,155.47

(0.03)
(1.09)
(0.01)

40.17
24.12
22.96

(0.57)
(23.73)
(0.24)

872.73
524.12
498.80

2,371.97
2,371.97
2,371.97
2,371.97
2,371.97

-
-
-

-
-
-

52.43
26.75
46.46

1,139.83
581.44
1,009.92

2,173.89
2,173.89
2,173.89
2,173.89
2,173.89

(0.01)
(0.55)
(0.01)

46.30
25.43
34.71

(0.57)
(23.73)
(0.24)

2,012.56
1,105.56
1,508.72

4,545.87
4,545.87
4,545.87
4,545.87
4,545.87

(24.17)

(12,098.07)

(9.16)

(199.14)

-

-

(4.58)

(199.14)

50,057.40
50,057.40
50,057.40
50,057.40
50,057.40

1,296.44

51,353.84
51,353.84
51,353.84
51,353.84
51,353.84

2,172.83
2,172.83
2,172.83
2,172.83
2,172.83

(16.39)

2,156.44
2,156.44
2,156.44
2,156.44
2,156.44

2,173.89
2,173.89
2,173.89
2,173.89
2,173.89

(126.80)

2,047.09
2,047.09
2,047.09
2,047.09
2,047.09

4,346.73
4,346.73
4,346.73
4,346.73
4,346.73

(143.19)

4,203.54
4,203.54
4,203.54
4,203.54
4,203.54

me of the Ehe Ehe Ehe Ehe Ennnnntttttitititititiesiesiesiesies
me of t
NNNNNaaaaame of t
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PPPPPaaaaarrrrreeeeennnnnttttt:::::
Pearl Global Industries Limited

ubsidiaiaiaiaiarrrrryyyyy:::::
ubsid
ubsid
SSSSSubsid
ubsid
Indian
-
Pearl Global Kausal Vikas Limited
Pearl Apparel Fashions Limited
SBUYS E-Commerce Limited
-
Norp Knit Industries Limited
Pearl Global Far East Limited
Pearl Global (HK) Limited

Foreign

SSSSSubtubtubtubtubtotototototaaaaalllll

Intercompany Elimination &
Consolidation Adjustments

TTTTTotototototaaaaalllll

Non Controlling Interest in subsidiaries

GrGrGrGrGraaaaand  Tnd  Tnd  Tnd  Tnd  Totototototaaaaalllll

E 49 : LEAAAAASSSSSEEEEESSSSS
E 49 : LE
NONONONONOTTTTTE 49 : LE
E 49 : LE
E 49 : LE

Until March 31, 2019, the Group recognized leases in accordance with Ind AS 17. A lease was defined as an agreement whereby
the lessor conveys to the lessee in return for a series of payments the right to use an asset for an agreed period of time. The lessor
and lessee accounted for the lease on the basis of the distribution of the risks and rewards associated with the leased asset.

Insofar as all the substantial risks and rewards were transferred to the Group as lessee, the respective leased assets were capitalized
at fair value or the lower present value of the minimum lease payments and depreciated using the straight-line method on the
basis of the useful life of the underlying asset or the lease term, if this was shorter. The payment obligations resulting from future
lease payments were discounted and recognized as a liability.

Where the Group was the lessee in operating leases, in other words, if not all material risks and rewards were transferred, the lease
or rental payments were recognized directly as expenses in the statement of Profit and Loss.

Since April 1, 2019, the Group has recognized leases in accordance with Ind AS 116. This defines a lease as a contract, or part of
a  contract,  whereby  the  lessor  conveys  to  the  lessee  the  right  to  use  an  asset  for  an  agreed  period  of  time  in  exchange  for
consideration.

se of prrrrractactactactacticicicicicaaaaal exl exl exl exl expppppeeeeedddddieieieieiennnnntttttsssss
se of p
ach and und und und und use of p
se of p
ach a
TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion an an an an apppppppppprrrrroooooach a
ach a
se of p
ach a

Ministry  of  Corporate  Affairs  (“MCA”)  through  Companies  (Indian  Accounting  Standards)  Amendment  Rules,  2019  and
Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing

160

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to consolidated financial statements for the year ended March 31, 2020

lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement,
presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model
for lessees.
The Group has adopted Ind AS 116, effective annual reporting period beginning April 1, 2019 and has applied the standard to its
leases, retrospectively, with the cumulative effect of initially applying the standard, recognised on the date of initial application
(April 1, 2019). Accordingly, the Group has not restated comparative information, instead, the cumulative effect of initially
applying this standard has been recognised as an adjustment to the opening balance of retained earnings as on April 1, 2019.

GrGrGrGrGrouououououp ap ap ap ap as a les
s a lesseseseseseeeeee
s a les
s a les
s a les
On transition, the Group recognised a lease liability measured at the present value of the remaining lease payments. The right-of-
use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but
discounted using the lessee’s incremental borrowing rate as at April 1, 2019. Accordingly, a right-of-use asset of ` 8,275.87 lakh
and a corresponding lease liability of ` 7,877.03 lakh has been recognized. The cumulative effect on transition in retained earnings
is ` 349.36 lakh (net of deferred tax of ` 102.38 lakh, Lease equilisation reserve of ` 242.61 lakh, Prepaid Rent of ` 1,093.20
lakh) (for detail please refer note below). The principal portion of the lease payments have been disclosed under cash flow from
financing activities. The lease payments for operating leases as per Ind AS 17 Leases, were earlier reported under cash flow from
operating activities. The weighted average incremental borrowing rate vary from Company to Company in the Group and has
been applied accordingly to lease liabilities recognised in the balance sheet at the date of initial application.
On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the
right-of-use asset, and finance cost for interest accrued on lease liability.
Some practical expedients permitted by the standard are used, notably:
•

To not reassess upon transition whether an existing contract contains a lease. The definition of a lease under Ind AS 116 has
been applied only to contracts entered into or changed on or after April 01, 2019.
For transition, the Group has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12
months from the date of transition by class of asset
The recognition exemptions for short-term leases and leases of low-value assets.
To apply Ind AS 37 for onerous leases instead of performing an impairment review.

•
•
Presentational changes: As a result of implementing Ind AS 116, the Group has made a some presentational changes in 2019-
2020, notably to present ‘Right-of-use assets’ as a separate line item in the balance sheet and to include lease liabilities in other
current and non-current liabilities.

•

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PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Right-of-use assets
Other Non Current Assets
Current Assets
TTTTTotototototaaaaal As
l Assetsetsetsetsetsssss
l As
l As
l As
Equity Share Capital
Other Equity
NCI
Deferred Tax Liabilities (Net)
Lease Liabilities
Other Non Current Liabilities
Other Current Liabilities
TTTTTotototototaaaaal Eql Eql Eql Eql Equuuuuititititity ay ay ay ay and Lnd Lnd Lnd Lnd Liabiabiabiabiabilililililitititititiesiesiesiesies

As aAs aAs aAs aAs attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

AAAAApppppppppplllllicicicicicaaaaatttttioioioioionnnnn
of Iof Iof Iof Iof Ind And And And And AS 116
S 116
S 116
S 116
S 116

d As Attttt
RRRRReeeeevvvvviseiseiseiseised As A
d As A
d As A
d As A
AAAAAppppprrrrril 01, 2019
il 01, 2019
il 01, 2019
il 01, 2019
il 01, 2019

-
43,459.78
66,693.56
110,153.34
110,153.34
110,153.34
110,153.34
110,153.34
2,166.39
44,820.35
1,153.26
340.46
-
13,750.99
47,921.89
110,153.34
110,153.34
110,153.34
110,153.34
110,153.34

8,275.88
(784.98)
(308.22)
7,182.68
7,182.68
7,182.68
7,182.68
7,182.68
-
(349.36)
-
(102.38)
7,877.03
(242.61)
-
7,182.68
7,182.68
7,182.68
7,182.68
7,182.68

8,275.88
42,674.80
66,385.34
117,336.02
117,336.02
117,336.02
117,336.02
117,336.02
2,166.39
44,470.99
1,153.26
238.08
7,877.03
13,508.38
47,921.89
117,336.02
117,336.02
117,336.02
117,336.02
117,336.02

Pearl Global Industries Limited     Annual Report 2019-20

161

Notes
to consolidated financial statements for the year ended March 31, 2020

The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported as at
March 31, 2019 compared to the lease liability as accounted as at April 1, 2019 is primarily due to inclusion of present value of
the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per the requirement
of Ind AS 116 and exclusion of the commitments for the leases to which the Group has chosen to apply the practical expedient as
per the standard.

ue of assssssetsetsetsetsetsssss
ue of a
: moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of a
ue of a
: mov
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: mov
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ld Assetsetsetsetsetsssss
ld As
ld As
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ck ack as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ck ack a
ch 31, 2019
ch 31, 2019
Cumulative catch-up for previously reported operating leases on implementation of IND AS 116
il 01, 2019
il 01, 2019
ck ack as as as as as at At At At At Appppprrrrril 01, 2019
ck ack a
GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a
il 01, 2019
il 01, 2019
Add: Additions during the year
Add: Reclassified from PPE on account of adoption of Ind AS 116
Less: Disposals / adjustments during the year
Add: Exchange Realignment
Add: Currency Translation Reserve
ch 31, 2020
ch 31, 2020
ck As at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ck As a
ck As a
GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock As a
ch 31, 2020
ch 31, 2020
ck As a

iciaiciatttttioioioioion :n :n :n :n :
iciaicia
AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed Dd Dd Dd Dd Deeeeeppppprrrrricia
il 01, 2019
il 01, 2019
As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019
il 01, 2019
il 01, 2019
Add: Depreciation charge for the year
Add: Reclassified from PPE on account of adoption of Ind AS 116
Less: Disposals/adjustments during the year
Add: Exchange Realignment
Add: Currency Translation Reserve
ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ck :ck :
ck :ck :
NNNNNet Bet Bet Bet Bet Blololololock :
ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

-----
8,275.88
8,275.88
352.96
2,903.98
(51.44)
(0.42)
678.56
12,159.53
12,159.53
12,159.53
12,159.53
12,159.53

-
1,303.46
69.68
-
(0.22)
60.61
1,433.53
1,433.53
1,433.53
1,433.53
1,433.53

10,725.98
10,725.98
10,725.98
10,725.98
10,725.98

In 2019-20, there were no impairment charges recorded for right-of-use assets.

ue of reeeeecccccooooogggggnnnnniseiseiseiseised ld ld ld ld liabiabiabiabiabilililililitititititiesiesiesiesies
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: moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of r
ue of r
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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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PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

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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)

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ch 31, 2020
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ch 31, 2019
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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.

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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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We have audited the accompanying standalone     financial statements of PPPPPeaeaeaeaearrrrrl 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.

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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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• 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
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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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• 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.....

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it addr
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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
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hose C

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the
preparation  of  these  standalone     financial  statements  that  give  a  true  and  fair  view  of  the  financial  position,  financial
performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind
AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone     financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the standalone     financial statements, the Board of Directors is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

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it of t
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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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t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the she she she she stttttaaaaandndndndndaaaaalololololone fine fine fine fine finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnnttttts of P
s of P
t of e
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t of e
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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

S.S.S.S.S. NNNNNaaaaame ofme ofme ofme ofme of
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1

ttttthe She She She She Stttttaaaaatttttuuuuuttttteeeee
Income Tax Act, 1961

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Income Tax Demand

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iiiiin n n n n ` l l l l laaaaakkkkkhhhhh aaaaamoumoumoumoumounnnnnt rt rt rt rt relelelelelaaaaattttteseseseses
8.26 A.Y 2015-16

Income Tax Act, 1961

Income Tax Demand

0.036 A.Y 2015-16

Income Tax Act, 1961

Income Tax Demand

38.83 A.Y 2016-17

Income Tax Act, 1961

Income Tax Demand

16.61 A.Y 2017-18

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Assessing Officer
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Commissioner of
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- Assessing Officer

2

3

4

5

Income Tax Act, 1961

Income Tax Demand

16.52 Upto A.Y. 2019-20 Demand as per traces Portal.

viii) On the basis of information and explanation provided to us, the Company has not defaulted in repayment of loans and
borrowings to financial institution and bank. The Company has not taken any loan from Government or has not issued
any debentures.

ix) During the year, the Company did not raise any money by the way of initial public or further public offer (including debt
instruments). The term loan taken during the year were applied for the purpose for which the same has been taken.

x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or

employees has been noticed or reported during the year.

xi) The  Company  has  paid/provided  managerial  remuneration  in  accordance  with  provisions  of  Section  197  read  with

Schedule V to the Companies Act, 2013 as applicable to the Company.

xii) The Company is not a Nidhi Company and hence, the provisions of paragraph 3(xii) of the Order are not applicable to

the Company.

xiii) In our opinion and according to the information and explanations given to us and on the basis of our examination of the
records of the Company, all transactions with the related parties are in compliance with Section 177 and 188 of the Act,
where applicable, and the details have been disclosed in the financial statements, as required by the applicable accounting
standards.

xiv) The  Company  has  not  made  any  preferential  allotment  or  private  placement  of  shares  or  fully  or  partly  convertible
debentures during the year under review. Accordingly, the provisions of paragraph 3(xiv) of the Companies (Auditor’s
Report) Order, 2016 are not applicable to the Company.

xv) The Company has not entered into any non-cash transactions with directors or persons connected with him and hence
provisions of Section 192 of the Companies Act, 2013 are not applicable. Accordingly, provisions of clause 3 (xv) of the
order are not applicable.

xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,

the provisions of paragraph 3(xvi) of the Order are not applicable to the Company.

a & Co.....
a & Co
a & Co
FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co
a & Co
Chartered Accountants,
Firm Registration Number 008352N

(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Agk Ag
k Ag
k Agaaaaarrrrrwwwwwaaaaalllll)))))
Partner
Membership Number 073696
N:20073696AAAAAAAAAAAAAAAABBBBBL6574
L6574
L6574
N:20073696A
UUUUUDDDDDIIIIIN:20073696A
N:20073696A
L6574
L6574
N:20073696A

Place of Signature: New Delhi
Date: July 28, 2020

172

Pearl Global Industries Limited     Annual Report 2019-20

Annexure ‘B’ to the Independent Auditors’ Report

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We have audited the internal financial controls with reference to financial statements of Pearl Global Industries Limited
(“(“(“(“(“ttttthe Co
he Commmmmpppppaaaaannnnnyyyyy”)”)”)”)”) as of March 31, 2020 in conjunction with our audit of the standalone financial statements of the Company
he Co
he Co
he Co
for the year ended on that date.

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l Co
l Co
l Connnnntttttrrrrrooooolslslslsls
l Co

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal
control with reference to financial statements criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Act.

AAAAAudududududitititititooooorsrsrsrsrs’  R’  R’  R’  R’  Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititityyyyy

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over  Financial  Reporting  (the  “Guidance  Note”)  and  the  Standards  on  Auditing,  issued  by  ICAI  and  deemed  to  be
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants
of India. Those Standards and the Guidance note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial
statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with
reference to financial statements included obtaining an understanding of internal financial controls with reference to financial
statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the Company’s internal financial controls system with reference to financial statements.

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l Co
g of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co
l Co
g of I
MMMMMeaeaeaeaeannnnniiiiinnnnng of I
g of I
l Co
g of I

A company’s internal financial control with reference to financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal financial control with reference to financial
statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that  transactions  are  recorded  as  necessary  to  permit  preparation  of  financial  statements  in  accordance  with  generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention

Pearl Global Industries Limited     Annual Report 2019-20

173

Annexure ‘B’ to the Independent Auditors’ Report (contd...)

or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect
on the standalone financial statements.

l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to fio fio fio fio finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss
l Co
s of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co
l Co
s of I
IIIIInnnnnheheheheherrrrreeeeennnnnt Lt Lt Lt Lt Liiiiimmmmmitititititaaaaatttttioioioioionnnnns of I
s of I
l Co
s of I

Because  of  the  inherent  limitations  of  internal  financial  controls  with  reference  to  financial  statements,  including  the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial
statements to future periods are subject to the risk that the internal financial control with reference to financial statements
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.

OpOpOpOpOpiiiiinnnnnioioioioionnnnn

In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to
financial statements and such internal financial controls with reference to financial statements were operating effectively as
at March 31, 2020, based on the internal control with reference to financial statements criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered Accountants of India.

FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co
a & Co
a & Co
a & Co.....
a & Co
Chartered Accountants,
Firm Registration Number 008352N

(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Ag
k Ag
k Agaaaaarrrrrwwwwwaaaaalllll)))))
k Ag
Partner
Membership Number 073696
UUUUUDDDDDIIIIIN:20073696A
N:20073696A
N:20073696A
N:20073696AAAAAAAAAAAAAAAABBBBBL6574
L6574
L6574
L6574
N:20073696A
L6574

Place of Signature: New Delhi
Date: July 28, 2020

174

Pearl Global Industries Limited     Annual Report 2019-20

Balance Sheet
as at March 31, 2020

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

AsAsAsAsAssetsetsetsetsetsssss
I.

Investment in subsidiaries
Investment - others

Property, plant and equipment

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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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CCCCCuuuuurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss
(a)
(b)

II.

Equity share capital

(c) Other current assets
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TTTTTotototototaaaaal  al  al  al  al  assssssetsetsetsetsetsssss
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EqEqEqEqEquuuuuititititityyyyy
(a)
(b) Other equity
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NNNNNooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt  lt  lt  lt  lt  liabiabiabiabiabilililililitititititiesiesiesiesies
Financial liabilities
(a)
Borrowings
(i)
(ii)
Lease Liabilities
(iii) Others financial liabilities
Provisions

(b)
(c) Deferred tax liabilities (net)
(d) Other non current liabilities
TTTTTotototototaaaaal nol nol nol nol nonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies
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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)
TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies
TTTTTotototototaaaaal el el el el eqqqqquuuuuititititity ay ay ay ay and lnd lnd lnd lnd liabiabiabiabiabilililililitititititiesiesiesiesies

Summary of Significant Accounting Policies
The accompanying notes form an integral part of these financial statements

As per our Report of even date attached
FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co
a & Co
a & Co
a & Co.....
a & Co
CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss
Firm’s Registration Number 008352N

(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Agk Agaaaaarrrrrwwwwwaaaaalllll)))))
k Agk Ag
Partner
Membership Number 073696

Place of Signature: New Delhi
Date: July 28, 2020

NNNNNotototototeeeee
NNNNNooooo.....

 4
 5
 50
 6
 7

 8
 9
 10
 11
 13
 14

 15

 9
 16
 17
 18
 10
 11
 14

 19
 20

 21
 50
 22
 23
 12
 24

 21A
 50
 25

 22
 24
 23
 26

3

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

 13,173.38
 232.50
 2,614.35
 7,393.26
 84.76

 11,728.05
 142.63
 505.20
 936.66
 469.39
 499.40
----------------------------------------------
37,779.57
37,779.57
37,779.57
37,779.57
37,779.57
----------------------------------------------

 14,792.54

 692.68
 9,740.45
 2,059.77
 931.61
 325.78
 87.17
 4,989.11
----------------------------------------------
33,619.11
33,619.11
33,619.11
33,619.11
33,619.11
----------------------------------------------
71,398.68
71,398.68
71,398.68
71,398.68
71,398.68
===================

 2,166.39
 28,421.53
----------------------------------------------
30,587.92
30,587.92
30,587.92
30,587.92
30,587.92
----------------------------------------------

 5,384.23
 2,813.35
 246.97
 881.14
 248.31
 2,997.91
----------------------------------------------
12,571.91
12,571.91
12,571.91
12,571.91
12,571.91
----------------------------------------------

 15,251.01
 236.41

331.05

 8,800.36

 2,747.50
 815.18
 57.35
 -
----------------------------------------------
28,238.85
28,238.85
28,238.85
28,238.85
28,238.85
----------------------------------------------
71,398.68
71,398.68
71,398.68
71,398.68
71,398.68
===================

 13,146.90
 159.72
 -
 7,429.89
 114.94

 11,726.14
 135.13
 474.62
 844.06
 303.15
 385.80
----------------------------------------------
 34,720.35
 34,720.35
 34,720.35
 34,720.35
 34,720.35
----------------------------------------------

 13,513.04

 -
 11,134.77
 2,234.64
 1,454.01
 349.63
 1,566.59
 3,912.78
----------------------------------------------
 34,165.46
 34,165.46
 34,165.46
 34,165.46
 34,165.46
----------------------------------------------
 68,885.81
 68,885.81
 68,885.81
 68,885.81
 68,885.81
===================

 2,166.39
 29,452.08
----------------------------------------------
 31,618.47
 31,618.47
 31,618.47
 31,618.47
 31,618.47
----------------------------------------------

 3,185.15
 -
 222.00
 710.08
 340.46
 3,076.96
----------------------------------------------
 7,534.65
 7,534.65
 7,534.65
 7,534.65
 7,534.65
----------------------------------------------

 16,182.41
 -

 63.70

 10,450.22

 1,938.27
 837.89
 70.04
 190.16
----------------------------------------------
 29,732.69
 29,732.69
 29,732.69
 29,732.69
 29,732.69
----------------------------------------------
 68,885.81
 68,885.81
 68,885.81
 68,885.81
 68,885.81
===================

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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
d of Di
d of Di
d of Dirrrrreeeeectctctctctooooors of P
rs of P
rs of P
rs of Peaeaeaeaearrrrrl Glo
l Glo
l Glo
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd
r & o
f of B
d of Di
rs of P
l Glo

(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
Managing Director
DIN 00003044

r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r)
r Si
(Ka(Kashshshshshmmmmmiiiiir Si
r Si
(Ka(Ka
r Si
(Ka
Chief Financial Officer

Place of Signature: Gurugram
Date: July 28, 2020

(D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh)))))
Chairman
DIN 00003021

(S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll)))))
Company Secretary
M. No. ACS - 8370

176

Pearl Global Industries Limited     Annual Report 2019-20

Statement of changes in equity
for the year ended March 31, 2020

(Amount in ` Lakh, unless otherwise stated)

AAAAA..... EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre Ce Ce Ce Ce Caaaaapppppitititititaaaaalllll

As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018
Changes during the year
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
Changes during the year
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

B.B.B.B.B. OOOOOtttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititityyyyy

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

GGGGGeeeeenenenenenerrrrraaaaalllll
RRRRReseeseeseeseeserrrrr vvvvveeeee

RRRRReseeseeseeseeserrrrrvvvvves aes aes aes aes and Snd Snd Snd Snd Suuuuurprprprprpllllluuuuusssss

SSSSSeeeeecucucucucurrrrrititititityyyyy
PPPPPrrrrreeeeemmmmmiuiuiuiuiummmmm RRRRReeeeedededededemmmmmptptptptptioioioioionnnnn
RRRRReseeseeseeseeserrrrrvvvvveeeee

CCCCCaaaaapppppitititititaaaaalllll AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioionnnnn RRRRRetetetetetaaaaaiiiiineneneneneddddd
EEEEEaaaaarrrrrnnnnniiiiinnnnngggggsssss

RRRRReseeseeseeseeserrrrr vvvvveeeee

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018

 4,204.36  17,103.90

 95.00

 625.95

 5,663.16

Profit/(loss) for the year

Remeasurement of the benefit plan,
net of tax effect

he yearrrrr
l Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooome fome fome fome fome for tr tr tr tr the yea
he yea
he yea
l Co
TTTTTotototototaaaaal Co
l Co
he yea
l Co

Dividend paid on Equity Shares

Dividend Distribution Tax on Equity Shares

 -

-

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 2,150.19

 131.87

 2,282.06
 2,282.06
 2,282.06
 2,282.06
 2,282.06

 (433.28)

 (89.06)

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

 17,103.90
 17,103.90
 4,204.36
 4,204.36
 17,103.90
 4,204.36  17,103.90
 17,103.90
 4,204.36
 4,204.36

 95.00
 95.00
 95.00
 95.00
 95.00

 625.95
 625.95
 625.95
 625.95
 625.95

 7,422.88
 7,422.88
 7,422.88
 7,422.88
 7,422.88

Implementation of Ind AS 116:
Leases (Refer Note No. 50)

Profit/(loss) for the year

Net movement in effective portion of
cash flow hedge reserve, net of tax effect

Remeasurement of the benefit plan,
net of tax effect

he yearrrrr
he yea
he yea
l Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooome fome fome fome fome for tr tr tr tr the yea
l Co
l Co
TTTTTotototototaaaaal Co
he yea
l Co

Dividend paid on Equity Shares

Dividend Distribution Tax on Equity Shares

-

 -

-

-

 - - - - -

 -

 -

 -

 -

 -

 -

 - - - - -

 -

 -

 -

 -

 -

 -

 - - - - -

 -

 -

 -

 -

 -

 -

 - - - - -

 -

 -

 (190.61)

 500.89

 -

 87.92

 588.81
 588.81
 588.81
 588.81
 588.81

 (649.88)

 (133.68)

 2,166.39
 -
 2,166.39
 2,166.39
 2,166.39
 2,166.39
 2,166.39
 -
 2,166.39
 2,166.39
 2,166.39
 2,166.39
 2,166.39

OOOOOtttttheheheheherrrrr TTTTTotototototaaaaal Ol Ol Ol Ol Otttttheheheheherrrrr
E qE qE qE qE quuuuuititititityyyyy

C oC oC oC oC ommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee
IIIIIncncncncncooooom em em em em e

EEEEEffeffeffeffeffectctctctctivivivivive  Pe  Pe  Pe  Pe  Pooooorrrrrtttttioioioioionnnnn
of Cof Cof Cof Cof Caaaaash Fsh Fsh Fsh Fsh Flololololowwwww
HHHHHeeeeedddddgggggeeeee

 -

 -

 -

 - - - - -

 -

 -

 - - - - -

 -

 -

 27,692.37
 27,692.37
 27,692.37
 27,692.37
 27,692.37

 2,150.19
 2,150.19
 2,150.19
 2,150.19
 2,150.19

 131.87
 131.87
 131.87
 131.87
 131.87

 2,282.06
 2,282.06
 2,282.06
 2,282.06
 2,282.06

 (433.28)
 (433.28)
 (433.28)
 (433.28)
 (433.28)

 (89.06)
 (89.06)
 (89.06)
 (89.06)
 (89.06)

 29,452.09
 29,452.09
 29,452.09
 29,452.09
 29,452.09

 (190.61)
 (190.61)
 (190.61)
 (190.61)
 (190.61)

 500.89
 500.89
 500.89
 500.89
 500.89

 (645.22)

 (645.22)
 (645.22)
 (645.22)
 (645.22)
 (645.22)

 -

 87.92
 87.92
 87.92
 87.92
 87.92

 (645.22)
 (645.22)
 (645.22)
 (645.22)
 (645.22)

 (56.41)
 (56.41)
 (56.41)
 (56.41)
 (56.41)

 -

 -

 (649.88)
 (649.88)
 (649.88)
 (649.88)
 (649.88)

 (133.68)
 (133.68)
 (133.68)
 (133.68)
 (133.68)

ch 31, 2020
ch 31, 2020
BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

 17,103.90
 17,103.90
 4,204.36
 4,204.36
 17,103.90
 4,204.36  17,103.90
 17,103.90
 4,204.36
 4,204.36

 95.00
 95.00
 95.00
 95.00
 95.00

 625.95
 625.95
 625.95
 625.95
 625.95

 7,037.53
 7,037.53
 7,037.53
 7,037.53
 7,037.53

 (645.22)
 (645.22)
 (645.22)
 (645.22)
 (645.22)

 28,421.53
 28,421.53
 28,421.53
 28,421.53
 28,421.53

Summary of Significant Accounting Policies (Note No. 3)

The accompanying notes form an integral part of these financial statements

As per our Report of even date attached
FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co
a & Co.....
a & Co
a & Co
a & Co
CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss
Firm’s Registration Number 008352N

(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Agk Agaaaaarrrrrwwwwwaaaaalllll)))))
k Agk Ag
Partner
Membership Number 073696

Place of Signature: New Delhi
Date: July 28, 2020

FFFFFooooor & o
r & on bn bn bn bn behehehehehaaaaalllllf of B
r & o
r & o
f of B
f of B
f of Boooooaaaaarrrrrd of Di
d of Di
d of Di
d of Dirrrrreeeeectctctctctooooors of P
rs of Peaeaeaeaearrrrrl Glo
rs of P
rs of P
l Glo
l Glo
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd
r & o
f of B
d of Di
rs of P
l Glo

(P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh)))))
Managing Director
DIN 00003044

(Ka(Kashshshshshmmmmmiiiiir Si
(Ka(Ka
r Si
r Si
r Sinnnnngggggh Rh Rh Rh Rh Raaaaattttthouhouhouhouhour)r)r)r)r)
(Ka
r Si
Chief Financial Officer

Place of Signature: Gurugram
Date: July 28, 2020

(D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh)))))
Chairman
DIN 00003021

(S(S(S(S(Saaaaandendendendendeeeeeep Sp Sp Sp Sp Sabababababhhhhhaaaaarrrrrwwwwwaaaaalllll)))))
Company Secretary
M. No. ACS - 8370

Pearl Global Industries Limited     Annual Report 2019-20

177

Statement of Cash Flow
for the year ended March 31, 2020

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

(Amount in ` Lakh, unless otherwise stated)
he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
he yea
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2019
ch 31, 2020
ch 31, 2019
ch 31, 2020

CCCCCaaaaash flo
g activivivivivitititititiesiesiesiesies
g act
sh flows frws frws frws frws frooooom om om om om opppppeeeeerrrrraaaaatttttiiiiinnnnng act
g act
sh flo
sh flo
sh flo
g act
PPPPPrrrrrofit b
ofit befoefoefoefoeforrrrre ae ae ae ae and tnd tnd tnd tnd taaaaaxxxxx
ofit b
ofit b
ofit b
AAAAAdjdjdjdjdjuuuuussssstttttmememememennnnnttttts fos fos fos fos forrrrr:::::
Depreciation and amortization
Interest paid and other borrowing cost
Sundry balances written back
Grant amortised during the year
Amortisation of investment in preference shares
Amortisation of deferred rental income
Unwinding of discount on security deposits
Profit on sale of current investment - mutual Fund
Rental income
Interest income
Fair value loss (gain) on financial assets measured at fair value through profit and loss
Income on corporate guarantee
Mark to market (gain) / loss on forward contract
Amortisation of deferred asset - security deposit paid
Loss Allowance for doubtful debts
Bad debts written off
Others

ofit befoefoefoefoeforrrrre we we we we wooooorrrrrkkkkkiiiiinnnnng cg cg cg cg caaaaapppppitititititaaaaal chl chl chl chl chaaaaannnnngggggeseseseses
ofit b
ofit b
OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng pg pg pg pg prrrrrofit b
ofit b
MMMMMovovovovoveeeeemememememennnnnt it it it it in wn wn wn wn wooooorrrrrkkkkkiiiiinnnnng cg cg cg cg caaaaapppppitititititaaaaalllll:::::
(Increase)/decrease in trade receivables
(Increase)/decrease in other non-current financial assets
(Increase)/decrease in other current financial assets
(Increase)/decrease in other non-current assets
(Increase)/decrease in other current assets
(Increase)/decrease in inventories
Increase/(decrease) in trade payables
Increase/(decrease) in other non-current financial liabilities
Increase/(decrease) in other current financial liabilities
Increase/(decrease) in non-current provisions
Increase/(decrease) in current provisions
Increase/(decrease) in other non-current liabilities
Increase/(decrease) in other current liabilities

CCCCCaaaaash gsh gsh gsh gsh geeeeenenenenenerrrrraaaaattttteeeeed frd frd frd frd frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss
Tax paid on dividend
Direct tax paid (net of refunds)

CCCCCaaaaash flo
sh flo
sh flo
sh flow bw bw bw bw befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss
sh flo
ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss:::::
(Profit)/loss on sale of fixed assets
Impairment of investment in subsidiaries

g activivivivivitititititiesiesiesiesies
g act
sh innnnnflofloflofloflow frw frw frw frw frooooom/(m/(m/(m/(m/(uuuuusesesesesed id id id id innnnn) o) o) o) o) opppppeeeeerrrrraaaaatttttiiiiinnnnng act
g act
sh i
NNNNNet cet cet cet cet caaaaash i
sh i
g act
sh i

 ( A )
 ( A )
 ( A )
 ( A )
 ( A )

 1,090.51

 3,185.65

 1,761.66
 2,448.45
 37.34
 (1.00)
 -
 (32.08)
 157.41
 (73.79)
 (980.53)
 (249.62)
 (29.42)
 (138.40)
 462.80
 (154.26)
 47.92
 -
 116.91
----------------------------------------------------------
 4,463.90
 4,463.90
 4,463.90
 4,463.90
 4,463.90

 1,346.40
 (208.67)
 (289.34)
 (74.80)
 (1,091.78)
 (1,279.50)
 (1,380.19)
 (4.35)
 453.58
 306.21
 (12.70)
 (46.98)
 (9.46)
----------------------------------------------------------
 2,172.36
 2,172.36
 2,172.36
 2,172.36
 2,172.36
 (133.59)
 (738.87)
----------------------------------------------------------
 1,299.90
 1,299.90
 1,299.90
 1,299.90
 1,299.90

 (143.29)
 27.24
----------------------------------------------------------
 1,183.86
 1,183.86
 1,183.86
 1,183.86
 1,183.86
----------------------------------------------------------

 1,289.07
 1,961.06
 (55.16)
 (1.00)
 (12.98)
 (31.67)
 (13.48)
 (218.20)
 (814.53)
 (211.93)
 133.64
 (161.31)
 (247.24)
 42.22
 391.92
 1.41
 -
----------------------------------------------------------
 5,237.47
 5,237.47
 5,237.47
 5,237.47
 5,237.47

 (2,779.71)
 (325.54)
 (266.41)
 (88.95)
 (46.43)
 (1,514.18)
 3,472.93
 68.74
 131.24
 53.63
 15.15
 (529.15)
 258.64
----------------------------------------------------------
 3,687.43
 3,687.43
 3,687.43
 3,687.43
 3,687.43
 (89.06)
 (650.10)
----------------------------------------------------------
 2,948.27
 2,948.27
 2,948.27
 2,948.27
 2,948.27

 (1,719.28)
 1,438.36
----------------------------------------------------------
 2,667.35
 2,667.35
 2,667.35
 2,667.35
 2,667.35
----------------------------------------------------------

178

Pearl Global Industries Limited     Annual Report 2019-20

Statement of Cash Flow
for the year ended March 31, 2020 (Contd.)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

(Amount in ` Lakh, unless otherwise stated)
he year er er er er endendendendendeddddd
he yea
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he yea
he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
he yea
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2019
ch 31, 2020
ch 31, 2019
ch 31, 2020

CCCCCaaaaash flo
g activivivivivitititititiesiesiesiesies
g act
sh flows frws frws frws frws frooooom im im im im innnnnvvvvvesesesesestttttiiiiinnnnng act
g act
sh flo
sh flo
g act
sh flo
Purchase of property, plant and equipment(Including ROU, net with lease liabilities)
Sale proceeds of property, plant and equipment
(Increase)/decrease in capital work in progress
Sale/(Purchase) of investment properties
Purchase of Intangible assets
(Increase)/decrease in capital advances
Increase/(decrease) in capital creditor
(Increase)/decrease in Investment in subsidiaries
(Increase)/decrease in non-current investment - Others
(Increase)/decrease in current investment - Others
(Increase)/decrease in non-current Loans
(Increase)/decrease in current Loans
(Increase)/decrease in bank deposit
Interest received
Rent received

NNNNNet Cet Cet Cet Cet Caaaaash Fsh Fsh Fsh Fsh Frrrrrooooom/ (m/ (m/ (m/ (m/ (UUUUUsesesesesed Id Id Id Id Innnnn) I) I) I) I) Innnnnvvvvvesesesesestttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies

 ( B )
 ( B )
 ( B )
 ( B )
 ( B )

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g act
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sh flows frws frws frws frws frooooom fim fim fim fim finnnnnaaaaancincincincincinnnnng act
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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

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sh i
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NNNNNet cet cet cet cet caaaaash i
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 ( C )
 ( C )
 ( C )
 ( C )
 ( C )

sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C)
A+B+C)
A+B+C)
sh esh e
sh e
sh and cnd cnd cnd cnd caaaaash e
sh a
se) In cn cn cn cn caaaaash a
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se (se (dededededecccccrrrrreaeaeaeaease) I
se (se (
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Opening balance of cash and cash equivalents

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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
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

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(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
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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
E  2:  BA
E  2:  BA
N ON ON ON ON OTTTTT E  2:  BA
E  2:  BA
MMMMMEEEEEAAAAASSSSSUUUUURRRRREEEEEMMMMMEEEEENNNNNTTTTT

t  of  Commmmmpppppllllliaiaiaiaiancncncncnceeeee : : : : :  The  Financial  Statements  are
t  of  Co
t  of  Co
SSSSStttttaaaaattttteeeeemememememennnnnt  of  Co
t  of  Co
prepared on an accrual basis under historical cost Convention
except for certain financial instruments which are measured at
fair  value.  These  financial  statements  have  been  prepared  in
accordance with the Indian Accounting Standards (Ind AS) as
prescribed under Section 133 of the Companies Act, 2013 read
with  the  Companies  (Indian  Accounting  Standards)  Rules,
2015  as  amended  and  other  relevant  provisions  of  the
Companies Act, 2013, as applicable.

The  accounting  policies  are  applied  consistently  to  all  the
periods presented in the financial statements.

nd  pnd  prrrrreseeseeseeseesennnnntttttaaaaattttti oi oi oi oi onnnnn :  :  :  :  :   The  financial
nd  pnd  p
sis  of  Prrrrreeeeepppppaaaaarrrrraaaaattttti oi oi oi oi on  an  an  an  an  and  p
sis  of  P
sis  of  P
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sis  of  P
statements are prepared under the historical cost convention
except  for  certain  financial  assets  and  liabilities  (including
derivative financial instruments) that are measured at fair value
or amortised cost.

All  assets  and  liabilities  have  been  classified  as  current  or
noncurrent  according  to  the  Company’s  operating  cycle  and
other criteria set out in the Act. Based on the nature of products
and the time between the acquisition of assets for processing
and their realisation in cash and cash equivalents, the Company
has  ascertained  its  operating  cycle  as  twelve  months  for  the
purpose  of  current  non-current  classification  of  assets  and
liabilities.

FFFFFuuuuunctnctnctnctnctioioioioionnnnnaaaaal al al al al and Pnd Pnd Pnd Pnd Prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioion Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncyyyyy

The financial statements are presented in ` and all values are
rounded to the nearest lakhs upto two decimal places except
otherwise stated.

GGGGGoooooiiiiinnnnng Co
g Cog Co
g Co
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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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t  ac
t  ac
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ly  24,  2020
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a)a)a)a)a)

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n of F

The term “Material” has been defined as: Information is
material  if  omitting,  misstating  or  obscuring  it  could
reasonably  be  expected  to  influence  decisions  that  the
primary users of general purpose financial statements make
on the basis of those financial statements, which provide
financial  information  about  a  specific  reporting  entity.
Materiality  depends  on  the  nature  or  magnitude  of
information,  or  both.  An  entity  assesses  whether
information, either individually or in combination with
other information, is material in the context of its financial
statements  taken  as  a  whole.  Assessing  whether
information  could  reasonably  be  expected  to  influence
decisions made by the primary users of a specific reporting
entity ‘s general purpose financial statements requires an
entity to consider the characteristics of those users while
also considering the entity ‘s own circumstances

bbbbb)))))

icies, Chhhhhaaaaannnnnggggges ies ies ies ies in An An An An Accccccccccououououounnnnntttttiiiiinnnnnggggg
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icies, C
EEEEEssssstttttiiiiimmmmmaaaaatttttes aes aes aes aes and End End End End Errrrrrrrrrooooorsrsrsrsrs

The term-Material, used in this Standard shall have the
same meaning as assigned to it in paragraph 7 of Ind AS 1

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S 10 – E
IIIIInd And And And And AS 10 – E
S 10 – E
s af
S 10 – E

If  non-adjusting  events  after  the  reporting  period  are
material, non-disclosure could reasonably be expected to
influence  decisions  that  the  primary  users  of  general
purpose financial statements make on the basis of those
financial statements, which provide financial information
about  a  specific  reporting  entity.  Accordingly,  an  entity
shall disclose the nature of the event and an estimate of its
financial effect, or a statement that such an estimate cannot
be made for each material category of non-adjusting event
after the reporting period

ddddd)))))

IIIIInd  And  And  And  And  AS  37  –  P
S  37  –  P
S  37  –  P
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CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt As
t As

A  management  or  Board  decision  to  restructure  taken

180

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

before the end of the reporting period does not give rise
to  a  constructive  obligation  at  the  end  of  the  reporting
period. If an entity starts to implement a restructuring plan,
or announces its main features to those affected, only after
the reporting period, disclosure is required under Ind AS
10 Events after the Reporting Period, if the restructuring
is  material  and  non-disclosure  could  reasonably  be
expected to influence decisions that the primary users of
general purpose financial statements make on the basis of
those  financial  statements,  which  provide  financial
information about a specific reporting entity

e)e)e)e)e)

S 116 – Leaeaeaeaeasessessessesses
S 116 – L
S 116 – L
IIIIInd And And And And AS 116 – L
S 116 – L

Practical Expedient has been issued which permits lessees
not to account for COVID related concessions as a lease
modification.  The  practical  expedient  has  been  made
applicable from accounting period starting from April 1,
2020.

fffff )))))

s Combmbmbmbmbiiiiinnnnnaaaaatttttioioioioionnnnnsssss
s Co
s Co
S 103 – Buuuuusisisisisinesnesnesnesness Co
S 103 – B
S 103 – B
IIIIInd And And And And AS 103 – B
s Co
S 103 – B

An entity shall determine whether a transaction or other
event is a business combination by applying the definition
in this Ind AS, which requires that the assets acquired and
liabilities  assumed  constitute  a  business.  If  the  assets
acquired  are  not  a  business,  the  reporting  entity  shall
account  for  the  transaction  or  other  event  as  an  asset
acquisition.  Paragraphs  B5–B12D  provide  guidance  on
identifying a business combination and the definition of a
business.  Certain  other  changes  include  definition  of
Business  and  three  elements  of  business  such  as  Input,
Process, Output and changes in the Appendix to the IND
AS 103.

ggggg ))))) Certain other changes in IND AS 107 & 109 with respect
to Hedge Accounting Disclosures, temporary exceptions
from applying specific hedge accounting requirements and
Transition for hedge accounting

The  Company  is  evaluating  the  requirements  of  these
pronouncements and its affects on the financial statement.

AAAAApppppppppplllllicicicicicaaaaatttttioioioioion of Nn of Nn of Nn of Nn of Neeeeew Aw Aw Aw Aw Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg Prrrrrooooonounounounounouncncncncnceeeeemememememennnnntttttsssss

The following Ind As pronouncements were applied by
the Company during the year:

a)

b)

Ind AS 116 Leases w.e.f April 1, 2019.

Ind AS 12 Appendix C - Uncertainity over Income
tax treatments

c) Amendments  to  Ind  AS  19  -  Plan  Amendment
curtainment & settlement w.e.f April 1, 2019.

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E 3: SI
NONONONONOTTTTTE 3: SI
E 3: SI
E 3: SI

a)a)a)a)a)

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es  andndndndnd
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s,  es
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t  ac
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t  ac
aaaaassssssssssuuuuummmmmptptptptptioioioioionnnnnsssss

In preparing these financial statements, management has
made judgements, estimates and assumptions that affect
the application of the company’s accounting policies and
the  reported  amounts  of  assets,  liabilities,  income  and
expenses. Management believes that the estimates used in
the preparation of the financial statements are prudent and
reasonable. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an
ongoing  basis.  Revisions  to  accounting  estimates  are
recognized prospectively.

JJJJJudududududgggggeeeeemememememennnnntttttsssss

Information  about  the  judgements  made  in  applying
accounting policies that have the most significant effects
on the amounts recognized in the financial statements as
given below:

•

In respect of lease payments, determination whether
arrangements  contain  a  lease  and  determination  of
cancellable and non-cancellable tenure of leases (IND
AS 116)

• Classification  of  financial  assets:  assessment  of
business model within which the assets are held and
assessment of whether the contractual terms of the
financial  asset  are  solely  payments  of  principal  and
interest on the principal amount outstanding

• Useful  lives  of  Property,  plant  and  equipment  and

Intangible Assets

Employee benefit plans

Amortization of Government Grant

•

•

• Determination of Provision of income taxes vis-à-vis
anticipated  tax  issues  and  final  tax  outcomes  of
pending matters.

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nd es
AsAsAsAsAssssssuuuuummmmmptptptptptioioioioionnnnns as as as as and es
nd es
nd es

Information  about  assumptions  and  estimation
uncertainties that have a significant risk of resulting in a
material adjustment included in the following notes:

• measurement  of  defined  benefit  obligations  and

planned assets: key actuarial assumptions.

•

•

recognition of deferred tax assets: availability of future
taxable profit against which carry-forward tax losses
can be used.

impairment of financial assets.

Pearl Global Industries Limited     Annual Report 2019-20

181

Notes
to standalone financial statements for the year ended March 31, 2020

•

•

•

recognition  and  measurement  of  provisions  and
contingencies: key assumptions about the likelihood
and magnitude of an outflow of resources.

impairment  test  of  non-financial  assets:  key
assumptions used in estimating recoverable cash flows.

fair value measurement of financial instruments.

sificaaaaatttttioioioioionnnnn
sific
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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.

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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.

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s  : 
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s  :  The  present  value  of  the
s  : 
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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 :

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.

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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.

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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 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.

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t  Ex
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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.

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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.

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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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sactioioioioionnnnns as as as as and Tnd Tnd Tnd Tnd Trrrrraaaaannnnnslslslslslaaaaatttttioioioioionnnnnsssss
sact
sact
sact

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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.

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sact
TTTTTrrrrraaaaannnnnsact
sact
sact

Transactions in foreign currencies are translated into the
functional currency of the Company at the exchange rates
at the date the transactions or an average rate if the average
rate  approximates  the  actual  rate  at  the  date  of  the
transaction.

Monetary  assets  and  liabilities  denominated  in  foreign
currencies are translated into the functional currency at
the  exchange  rate  at  the  reporting  date.Non-monetary
assets  and  liabilities  that  are  measured  at  fair  value  in  a
foreign  currencies  are  translated  into  the  functional
currency  at  the  exchange  rate  when  the  fair  value  was
determined.  Non-monetary  assets  and  iabilities  that  are
measured in terms of historical cost are not retranslated.

Exchange  differences  on monetary  items  are  recognised
in profit or loss in the period in which they arise except
for exchange differences on foreign currency borrowings
relating to assets under construction for future productive
use, which are included in the cost of those assets when
they  are  regarded  as  an  adjustment  to  interest  costs  on
those foreign currency borrowings.

Advaces received or paid in foreign currency are recognised
at  exchange  rate  on  the  date  of  transaction  and  not  re-
translated.

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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.

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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.

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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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(((((iiiiiiiiiiiiiii) Ex

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
(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

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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.

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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.

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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.

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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.

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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:

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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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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.

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Leases for which the Company is a lessor is classified as
finance or operating lease. Leases in which the Company

186

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

does  not  transfer  substantially  all  the  risks  and  rewards
incidental  to  ownership  of  an  asset  are  classified  as
operating  leases.  Rental  income  arising  is  accounted  for
on a straight-line basis over the lease terms. Initial direct
costs incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased asset
and recognised over the lease term on the same basis as
rental income. Contingent rents are recognised as revenue
in the period in which they are earned.

nefitsssss
k)k)k)k)k) EEEEEmmmmmppppplololololoyeyeyeyeyee’e’e’e’e’s bs bs bs bs beeeeenefit
nefit
nefit
nefit

nefitsssss:  All  employee  benefits
nefit
nefit
ShoShoShoShoShorrrrrt  tt  tt  tt  tt  teeeeerrrrrm  em  em  em  em  emmmmmppppplololololoyeyeyeyeyee  be  be  be  be  beeeeenefit
nefit
expected  to  be  settled  wholly  within  twelve  months  of
rendering the service are classified as short-term employee
benefits. When an employee has rendered service to the
Company  during  an  accounting  period,  the  Company
recognises  the  undiscounted  amount  of  short-term
employee benefits expected to be paid in exchange for that
service as an expense unless another Ind AS requires or
permits the inclusion of the benefits in the cost of an asset.
Benefits  such  as  salaries,  wages  and  short-term
compensated  absences,  bonus  and  ex-gratia  etc.  are
recognised in statement of profit and loss in the period in
which the employee renders the related service.

A liability is recognised for the amount expected to be paid
after deducting any amount already paid under short-term
cash bonus or profit-sharing plans if the Company has a
present legal or constructive obligation to pay this amount
as a result of past service provided by the employee, and
the  obligation  can  be  estimated  reliably.  If  the  amount
already  paid  exceeds  the  undiscounted  amount  of  the
benefits, the Company recognises that excess as an asset /
prepaid expense to the extent that the prepayment will lead
to, for example, a reduction in future payments or a cash
refund.

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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.

nefit plllllaaaaannnnn
nefit p
DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p
nefit p
nefit p

A defined benefit plan is a post-employment benefit plan
other than a defined contribution plan.

The Company has an obligation towards gratuity, a defined
benefit retirement plan covering eligible employees. The
plan provides for a lump sum payment to vested employees
at  retirement,  death  while  in  employment  or  on
termination of employment of an amount based on the
respective employee’s salary and the tenure of employment.
Vesting occurs upon completion of five years of service.
The  Company  accounts  for  the  liability  for  gratuity
benefits  payable  in  future  based  on  an  independent
actuarial valuation report using the projected unit credit
method as at the year end.

The obligations are measured at the present value of the
estimated future cash flows.

The discount rate is generally based upon the market yields
available on Government bonds at the reporting date with
a term that matches that of the liabilities.

Re-measurements, comprising actuarial gains and losses,
the effect of the changes to the asset ceiling (if applicable)
and  the  return  on  plan  assets  (excluding  interest  and  if
applicable),  is  reflected  immediately  in  Other
Comprehensive Income in the statement of profit and loss.
All  other  expenses  related  to  defined  benefit  plans  are
recognised  in  statement  of  profit  and  loss  as  employee
benefit expenses. Re-measurements recognised in Other
Comprehensive  Income  will  not  be  reclassified  to
statement of profit and loss hence it is treated as part of
retained earnings in the statement of changes in equity.
Gains  or  losses  on  the  curtailment  or  settlement  of  any
defined benefit plan are recognised when the curtailment
or  settlement  occurs.  Curtailment  gains  and  losses  are
accounted for as past service costs.

nefitsssss
OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit
nefit
nefit
nefit

As  per  the  Company’s  policy,  eligible  leaves  can  be
accumulated  by  the  employees  and  carried  forward  to
future periods to either be utilised during the service, or
encashed. Encashment can be made during the service, on
early retirement, on withdrawal of scheme, at resignation
by  employee  and  upon  death  of  employee.  The  scale  of
benefits  is  determined  based  on  the  seniority  and  the
respective  employee’s  salary.  The  Company  records  an
obligation for such compensated absences in the period in
which the employee renders the services that increase this
entitlement. The obligation is measured on the basis of

Pearl Global Industries Limited     Annual Report 2019-20

187

Notes
to standalone financial statements for the year ended March 31, 2020

independent actuarial valuation using the projected unit
credit method.

-

Financial Asset at fair value through profit and
loss (FVTPL)

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GGGGGeeeeenenenenenerrrrraaaaalllll

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it  is  probable  that  an  outflow  of  resources  embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation. When the Company expects some or all of a
provision  to  be  reimbursed,  the  reimbursement  is
recognised  as  a  separate  asset,  but  only  when  the
reimbursement is virtually certain.

The  expense  relating  to  a  provision  is  presented  in  the
statement of profit and loss, net of any reimbursement. If
the effect of the time value of money is material, provisions
are  discounted  using  a  current  pre-tax  rate  that  reflects,
when appropriate, the risks specific to the liability. The
unwinding of discount is recognised in the statement of
profit and loss as a finance cost.

Provisions are reviewed at the end of each reporting period
and adjusted to reflect the current best estimate. If it is no
longer  probable  that  an  outflow  of  resources  would  be
required to settle the obligation, the provision is reversed.

mmmmm))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss

A  financial  instrument  is  a  contract  that  gives  rise  to  a
financial  asset  for  one  entity and  a  financial  liability  or
equity instrument for another entity.Financial assets and
financial  liabilities  are  recognised  when  the  Company
becomes  a  party  to  the  contractual  provisions  of  the
instruments.

(((((iiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss

nd measssssuuuuurrrrreeeeemememememennnnnttttt
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nd mea
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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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set c
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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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set  a
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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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ofit a
set at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a
set a
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ofit and los
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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.

DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn

A  financial  asset  (or,  where  applicable,  a  part  of  a
financial asset) is primarily derecognised (i.e. removed
from the Company’s Balance Sheet) when:

(i) The contractual rights to receive cash flows from

the asset has expired, or

(ii) The  Company  has  transferred  its  contractual
rights  to  receive  cash  flows  from  the  financial
asset  or  has  assumed  an  obligation  to  pay  the
received cash flows in full without material delay
to  a  third  party  under  a  ‘pass-through’
arrangement;  and  either  (a)  the  Company  has
transferred substantially all the risks and rewards
of  the  asset,  or  (b)  the  Company  has  neither
transferred nor retained substantially all the risks
and  rewards  of  the  asset,  but  has  transferred
control of the asset.

(((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies

nd measssssuuuuurrrrreeeeemememememennnnnttttt
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nd mea
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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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t mea
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t mea

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

-

-

Financial liabilities at amortised cost

Financial liabilities at fair value through profit
and loss (FVTPL)

A financial liability is classified as at FVTPL if it is
classified as held for trading, or it is a derivative or it
is designated as such as initial recognition. Financial
liabilities at FVTPL are measured at fair value and
net gains and losses, including any interest expense,
are  recognised  in  the  Statement  of  Profit  and  loss.
Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest  expense  is  recognised  in  the  Statement  of
Profit and loss.

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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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g of fi
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g of fi
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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 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.

nnnnn)))))

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t of fi
IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of fi
t of fi
t of fi

The Company measures the expected credit loss associated
with its assets based on historical trend, industry practices
and the business environment in which the entity operates
or  any  other  appropriate  basis.  The  impairment
methodology applied depends on whether there has been
a significant increases in credit risk. Expected credit loss is
the  weighted  average  of  the  difference  between  all
contractual  cash  flows  that  are  due  to  the  Company  in
accordance with the contracts and all the cash flows that
the  Company  expects  to  receive,  discounted  at  original
effective interest rate with the respective risk of defaults
occuring as the weights.

ooooo)))))

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t of no
IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of no
t of no
t of no

The  carrying  amounts  of  the  Company’s  non-financial
assets, other than deferred tax assets, are reviewed at the
end of each reporting period to determine whether there
is  any  indication  of  impairment.  If  any  such  indication
exists, then the asset’s recoverable amount is estimated.The
recoverable  amount  of  an  asset  or  cash-generating  unit
(‘CGU’) is the greater of its value in use or its fair value
less costs to sell.  In assessing value in use, the estimated
future cash flows are discounted to their present value using
a  pre-tax  discount  rate  that  reflects  current  market
assessments  of  the  time  value  of  money  and  the  risks
specific  to  the  asset  or  CGU.  For  the  purpose  of
impairment  testing ,  assets  that  cannot  be  tested
individually are grouped together into the smallest group
of assets that generates cash inflows from continuing use
that are largely independent of the cash inflows of other
assets or groups of assets (‘CGU’).

An impairment loss is recognized, if the carrying amount
of an asset or its CGU exceeds its estimated recoverable
amount and is recognised in statement of profit and loss.

Impairment losses recognised in prior periods are assessed
at end of each reporting period for any indications that
the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment

loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortisation,
if no impairment loss had been recognised.

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ue mea
ue mea

Fair value is the price that would be received to sell an asset
or  paid  to  transfer  a  liability  in  an  orderly  transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes
place either:

(a)

In the principal market for the asset or liability, or

(b) In  the  absence  of  a  principal  market,  in  the  most

advantageous market for the asset or liability

A fair value measurement of a non-financial asset takes into
account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.

The  Company  uses  valuation  techniques  that  are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use
of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the
lowest  level  input  that  is  significant  to  the  fair  value
measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether  transfers  have  occurred  between  levels  in  the
hierarchy  by  re-assessing  categorisation  (based  on  the
lowest  level  input  that  is  significant  to  the  fair  value
measurement  as  a  whole)  at  the  end  of  each  reporting
period.

190

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

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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).

MMMMMiiiiinnnnniiiiimmmmmuuuuum Am Am Am Am Alllllttttteeeeerrrrrnnnnnaaaaattttte Te Te Te Te Taaaaaxxxxx

Minimum Alternate Tax (MAT) paid in the year is charged
to  the  Statement  of  Profit  and  Loss  as  current  tax.The
Company recognises MAT credit available as an asset only
to  the  extent  that  there  is  convincing  evidence  that  the
Company will pay normal income tax during the specified
period, i.e., the period for which MAT credit is allowed to
be  carried  forward.  In  the  year  in  which  Company
recognises MAT credit as an asset in accordance with the
Guidance  Note  on  Accounting  for  Credit  Available  in
respect of Minimum Alternate Tax under the Income Tax
Act, 1961, the said asset is created by way of credit to the
Statement of Profit and Loss and shown as “MAT Credit
Entitlement”.  The  Company  reviews  the  “MAT  Credit
Entitlement” asset at each reporting date and writes down
the  asset  to  the  extent  the  Company  does  not  have
convincing evidence that it will pay normal tax during the
specified period.

In accordance with Ind AS 12 Company is grouping MAT
credit  entitlement  with  Deferred  Tax  Assets/Liabilities
(Net).

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ubsid
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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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sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss
sh esh e
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sh ash and cnd cnd cnd cnd caaaaash e
sh ash a

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an  original  maturity  of  three  months  or  less,  which  are
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and
cash  equivalents  consist  of  cash  balance  on  hand,  cash

Pearl Global Industries Limited     Annual Report 2019-20

191

Notes
to standalone financial statements for the year ended March 31, 2020

balance at banks and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are considered
an integral part of the Company’s cash management.

as deferred income and are credited to Profit and Loss on
a straight - line basis over the expected lives of related assets
and presented within other income.

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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.

uuuuu))))) GGGGGovovovovoveeeeerrrrrnnnnnmememememennnnnt gt gt gt gt grrrrraaaaannnnntttttsssss

Grants from the government are recognised at their fair
value where there is reasonable assurance that the grant
will  be  received  and  the  Company  will  comply  with  all
attached conditions.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities

A contingent liability exists when there is a possible but
not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or a
present  obligation  whose  amount  cannot  be  estimated
reliably. Contingent liabilities do not warrant provisions,
but  are  disclosed  unless  the  possibility  of  outflow  of
resources  is  remote.  Contingent  assets  are  neither
recognised  nor  disclosed  in  the  financial  statements.
However, contingent assets are assessed continually and if
it is virtually certain that an inflow of economic benefits
will arise, the asset and related income are recognised in
the period in which the change occurs.

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esea
ch & de
esea

Research  and  development  costs  that  are  in  nature  of
tangible assets and are expected to generate probable future
economic  benefits  are  capitalised  as  tangible  assets.
Revenue  expenditure  on  research  and  development  is
charged to the statement of profit and loss in the year in
which it is incurred.

x)x)x)x)x) ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss

When items of income and expense within statement of
profit  and  loss  from  ordinary  activities  are  of  such  size,
nature  or  incidence  that  their  disclosure  is  relevant  to
explain the performance of the Company for the period,
the nature and amount of such material items are disclosed
seperately as exceptional items.

192

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

E 4 : PROOOOOPPPPPEEEEERRRRRTTTTTYYYYY, P, P, P, P, PLLLLLAAAAANNNNNTTTTT
E 4 : PR
NONONONONOTTTTTE 4 : PR
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E 4 : PR
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LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss
seholdldldldld
seho
seho
lealealealealeaseho
seho

LLLLLeaeaeaeaeaseho
seholdldldldld
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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
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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
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t of
t of

ofit and Lnd Lnd Lnd Lnd Losososososs fos fos fos fos for ir ir ir ir innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies
ofit a
PPPPPrrrrrofit a
ofit a
ofit a
Rental Income
Direct operating expenses of property that generated rental income
Direct operating expenses of property that did not generated rental income
ies befoefoefoefoeforrrrre che che che che chaaaaargrgrgrgrgiiiiinnnnng deg deg deg deg deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn
ies b
ies b
IIIIIncncncncncooooome ame ame ame ame arrrrrisiisiisiisiisinnnnng frg frg frg frg frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties b
ies b
Depreciation & amortisation

ies (net)
ies (net)
IIIIIncncncncncooooome frme frme frme frme frooooom Im Im Im Im Innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrttttties (net)
ies (net)
ies (net)

ue of innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies
ue of i
ue of i
(b) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of i
ue of i

n of faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
n of f
n of f
EEEEEssssstttttiiiiimmmmmaaaaatttttioioioioion of f
n of f

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

980.53
65.88
14.23
900.42
900.42
900.42
900.42
900.42
85.75
---------------------------------------------------------
814.67
814.67
814.67
814.67
814.67
---------------------------------------------------------
10,793.94
10,793.94
10,793.94
10,793.94
10,793.94
---------------------------------------------------------

814.53
53.62
77.46
683.45
683.45
683.45
683.45
683.45
85.76
---------------------------------------------------------
597.69
597.69
597.69
597.69
597.69
---------------------------------------------------------
11,378.15
11,378.15
11,378.15
11,378.15
11,378.15
---------------------------------------------------------

The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum,
area, location, demand, restrictive entry to the complex,age of building and trend of fair market rent.This valuation is based
on valuations performed by an accredited independent valuer. Fair valuation is based on replacement cost method. The fair
value measurement is categorised in level 2 fair value hierarchy.

(c)

In the earlier years, the Company had initiated the process of converting its leasehold land (situated at Plot A-3, Naraina,
New Delhi) into freehold land. However, the deed is yet to be transferred in the name of the Company as at March 31, 2020.

(Amount in ` Lakh, unless otherwise stated)

E 7 : OTHHHHHEEEEER IR IR IR IR INNNNNTTTTTAAAAANNNNNGGGGGIIIIIBBBBBLLLLLE AE AE AE AE ASSSSSSSSSSEEEEETSTSTSTSTS
E 7 : OT
E 7 : OT
NONONONONOTTTTTE 7 : OT
E 7 : OT

AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed cd cd cd cd cosososososttttt
GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt
il 01, 2018
il 01, 2018
As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018
il 01, 2018
il 01, 2018
Add: Additions during the year
Less: Disposals / adjustments during the year

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
Add: Additions during the year
Less: Disposals / adjustments during the year

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed ad ad ad ad amomomomomorrrrrtttttisaisaisaisaisatttttioioioioionnnnn
As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018
il 01, 2018
Add: Amortisation charge for the year
Less: On disposals/adjustments during the year

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
Add: Amortisation charge for the year
Less: On disposals / adjustments during the year

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

CoCoCoCoCommmmmpupupupuputtttteeeeerrrrr
SSSSSofofofofoftttttwwwwwaaaaarrrrreeeee

219.89
27.65
-
---------------------------------------------------------
247.54
247.54
247.54
247.54
247.54
17.57
-
---------------------------------------------------------
265.11
265.11
265.11
265.11
265.11
---------------------------------------------------------

85.06
47.54
-
---------------------------------------------------------
132.60
132.60
132.60
132.60
132.60
47.75
-
---------------------------------------------------------
180.35
180.35
180.35
180.35
180.35
---------------------------------------------------------

84.76
84.76
84.76
84.76
84.76
114.94
114.94
114.94
114.94
114.94

TTTTTotototototaaaaalllll

219.89
27.65
-
---------------------------------------------------------
247.54
247.54
247.54
247.54
247.54
17.57
-
---------------------------------------------------------
265.11
265.11
265.11
265.11
265.11
---------------------------------------------------------

85.06
47.54
-
---------------------------------------------------------
132.60
132.60
132.60
132.60
132.60
47.75

---------------------------------------------------------
180.35
180.35
180.35
180.35
180.35
---------------------------------------------------------

84.76
84.76
84.76
84.76
84.76
114.94
114.94
114.94
114.94
114.94

Pearl Global Industries Limited     Annual Report 2019-20

195

Notes
to standalone financial statements for the year ended March 31, 2020

E 8 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNT IT IT IT IT IN SN SN SN SN SUUUUUBBBBBSSSSSIIIIIDDDDDIIIIIAAAAARRRRRIIIIIEEEEESSSSS
E 8 : IN
NONONONONOTTTTTE 8 : IN
E 8 : IN
E 8 : IN

NNNNNooooonnnnn- C- C- C- C- Cuuuuurrrrrrrrrreeeeennnnnttttt
ies - (uuuuunqnqnqnqnquotuotuotuotuoteeeeeddddd)))))
ies - (
ubsidiaiaiaiaiarrrrries - (
ies - (
ubsid
ubsid
es of S
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in en en en en eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrres of S
es of S
es of Subsid
ies - (
ubsid
es of S
(((((AAAAAt Cos
t Cost)t)t)t)t)
t Cos
t Cos
t Cos
Pearl Global Far East Limited, Hong Kong
535,000 (March 31, 2019: 5,35,000) Equity Shares
of USD 1 Each fully paid up
Pearl Apparel Fashions Limited, India
27,639,145 (March 31, 2019 27,639,145) Equity Shares
of ` 10 each fully paid up
Less: Provision for diminution in value of Investments

Pearl Global (HK) Limited, Hong Kong
1,610,000 (March 31, 2019: 16,10,000) Equity Shares
of USD 1 each fully paid up
Pearl Global Kausal Vikas Limited
50,000 (March 31, 2019: 50,000) Equity Shares
of ` 10 each fully paid up
Norp Knit Industries Limited, Bangladesh
3,381,211 (March 31, 2019: 3,381,211) Equity Shares
of Taka 100 Each fully paid up
SBUYS E-Commerce Limited
10,000 (March 31, 2019: Nil) Equity Shares
of ` 10 Each fully paid up
y - (y - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd)))))
y - (y - (
ubsidiaiaiaiaiarrrrry - (
ubsid
ubsid
e of S
e of S
IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in Pn Pn Pn Pn Prrrrrefeefeefeefeeferrrrreeeeencncncncnce She She She She Shaaaaarrrrre of S
e of Subsid
ubsid
e of S
d Cost)t)t)t)t)
d Cos
d Cos
(((((AAAAAt At At At At Amomomomomorrrrrtttttiseiseiseiseised Cos
d Cos
Pearl Apparel Fashions Limited, India
3,000,000 (March 31, 2019: 3,000,000) Preference Shares
of ` 10 each fully paid up

a) Aggregate value of unquoted investments
b) Aggregate amount of impairment in value of unquoted investments
c) Aggregate value of unquoted investments (net of impairment)

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

2,797.29

2,797.29

1,648.35

1,648.35

(1,644.44)
---------------------------------------------------------

3.91

(1,617.20)
---------------------------------------------------------

31.15

6,152.32

5.00

2,468.53

1.00

300.00

---------------------------------------------------------
11,728.05
11,728.05
11,728.05
11,728.05
11,728.05
========================
13,372.49
1,644.44
11,728.05

6,173.19

5.00

2,419.51

-

300.00

---------------------------------------------------------
11,726.14
11,726.14
11,726.14
11,726.14
11,726.14
========================
13,343.34
1,617.20
11,726.14

196

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

(b)

Information about subsidiaries

me of Commmmmpppppaaaaannnnnyyyyy
me of Co
NNNNNaaaaame of Co
me of Co
me of Co

CouCouCouCouCounnnnntttttrrrrry ofy ofy ofy ofy of
iiiiincncncncncooooorprprprprpooooorrrrraaaaatttttioioioioionnnnn

l activivivivivitititititiesiesiesiesies
l act
PPPPPrrrrriiiiincincincincincipppppaaaaal act
l act
l act

(Amount in ` Lakh, unless otherwise stated)

n (%) of eqqqqquuuuuititititity iy iy iy iy innnnnttttteeeeerrrrresesesesesttttt
n (%) of e
PPPPPooooorprprprprpooooorrrrrtttttioioioioion (%) of e
n (%) of e
n (%) of e
As AAs AAs AAs AAs Attttt
As AAs AAs AAs AAs Attttt
ch 31, 2020 MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2019
ch 31, 2019
ch 31, 2020

SSSSSubsid
ubsidiaiaiaiaiarrrrriesiesiesiesies
ubsid
ubsid
ubsid
Pearl Apparel Fashions Limited
Pearl Global Kaushal Vikas Limited
(Formally known as
Pixel Industries Limited)
Pearl Global Far East Limited
Pearl Global (HK) Limited

Hong Kong
Hong Kong

Norp Knit Industries Limited

Bangladesh

SBUYS E-Commerce Limiited

India

India
India

Trading of garments
Skill Development

Trading of garments
Manufacturing and
trading of garments
Manufacturing and
trading of garments
Online Trading
of garments

100.00
100.00

100.00
100.00

99.99

100.00

100.00
100.00

100.00
100.00

99.99

-

c)

Investment in equity shares of subsidiary includes Income from Corporate Guarantee for the following Companies:-

he Commmmmpppppaaaaannnnnyyyyy
he Co
he Co
me of t
me of t
NNNNNaaaaame of t
me of the Co
he Co
me of t

Pearl Global (HK) Limited, Hong Kong
Norp Knit Industries Limited, Bangladesh

TTTTTotototototaaaaalllll

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

220.12
266.89
---------------------------------------------------------
487.01
487.01
487.01
487.01
487.01
========================

240.98
217.87
---------------------------------------------------------
458.85
458.85
458.85
458.85
458.85
========================

d) As at March 31, 2019, the net worth of the Pearl Apparel Fashions Limited, a subsidiary Company is substantially eroded.
Management  decision  to  cease  its  existing  business  and  erosion of  its  net  worth  indicates  a  possible  impairment  in  the
carrying  value  of  investment,  Accordingly,  the  management  with  the  help  of  a  valuation  specialist,  has  carried  out  an
impairment assessment and estimated a provision of ` 1,617.20 lakh as a diminution in the carrying value of its investment.
The management has estimated the recoverable amount of its investment in the subsidiary by adjusted net asset method
using the pre-tax discount rate. Further, during the year ended March 31, 2020, the Management of the aforesaid subsidiary
Company, by resolution dated March 20, 2020 has decided to apply for voluntary liquidation. In effect of above resolution,
the Company further impaired its investments in such subsidiary by ` 27.24 lakh and recognised the same at its recoverable
amount. Hence the total impairment as at March 31, 2020 in the value of investment in the said subsidiary is ` 1,644.44
lakh.

Pearl Global Industries Limited     Annual Report 2019-20

197

Notes
to standalone financial statements for the year ended March 31, 2020

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

TS OTHHHHHEEEEERRRRRSSSSS
TS OT
E 9 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTS OT
TS OT
E 9 : IN
NONONONONOTTTTTE 9 : IN
E 9 : IN
TS OT
E 9 : IN

NNNNNooooonnnnn- C- C- C- C- Cuuuuurrrrrrrrrreeeeennnnnttttt
AAAAA..... EqEqEqEqEquuuuuititititity Iy Iy Iy Iy Innnnnssssstttttrrrrruuuuumememememennnnnttttts- Qs- Qs- Qs- Qs- Quotuotuotuotuoteeeeeddddd

(((((AAAAAt Ft Ft Ft Ft Faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a
nd loss)s)s)s)s)
nd los
nd los
ofit a
ofit a
ofit and los
nd los
ofit a
PDS Multinational fashions Limited, India 50,000
(March 31, 2019: 50,000) Equity Shares of ` 10 each fully paid up

B.B.B.B.B.

ies -UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd
ies -
ies -
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in Gn Gn Gn Gn Govovovovoveeeeerrrrrnnnnnmememememennnnnt set set set set secucucucucurrrrrititititities -
ies -
(((((AAAAAt At At At At Amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cososososost)t)t)t)t)
Investments in Government securities
-

Gold Sovereign Bond- 37 units of 2 gram each issued
by Reserve Bank of India

A + B)
A + B)
TTTTTotototototaaaaal (l (l (l (l (A + B)
A + B)
A + B)

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt
C.C.C.C.C.

nds - (Quotuotuotuotuoteeeeeddddd)))))
nds - (Q
nds - (Q
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in mn mn mn mn muuuuutttttuuuuuaaaaal fl fl fl fl fuuuuunds - (Q
nds - (Q
nd lossssss
nd los
nd los
ofit a
ofit a
IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts cs cs cs cs caaaaarrrrrrrrrrieieieieied ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a
ofit and los
nd los
ofit a
ICICI Prudential Short Term Fund DP Growth
536,068.057 units of Face Value of ` 10 per unit (March 31, 2019: Nil units)
L&T Banking and PSU debt fund direct plan - growth
1,223,214.3850 units of Face Value of ` 10 per unit (March 31, 2019: Nil units)
IDFC Banking and PSU debt fund direct plan - growth
1,267,806.9250 units of Face Value of ` 10 per unit (March 31, 2019: Nil units)

a) Aggregate book value of quoted investments

Aggregate market value of quoted investments
Aggregate value of unquoted investments
Aggregate amount of impairment in value of unquoted investments
Aggregate value of unquoted investments (net of impairment)

141.00
---------------------------------------------------------
141.00
141.00
141.00
141.00
141.00
---------------------------------------------------------

133.50
---------------------------------------------------------
133.50
133.50
133.50
133.50
133.50
---------------------------------------------------------

1.63

1.63

---------------------------------------------------------
1.631.631.631.631.63
---------------------------------------------------------
142.63
142.63
142.63
142.63
142.63
========================

---------------------------------------------------------
1.631.631.631.631.63
---------------------------------------------------------
135.13
135.13
135.13
135.13
135.13
========================

237.83

227.10

227.75
---------------------------------------------------------
692.68
692.68
692.68
692.68
692.68
========================
833.68
833.68
1.63
-
1.63

-

-

---------------------------------------------------------
-----
========================
133.50
133.50
1.63
-
1.63

E10 : LOAAAAANSNSNSNSNS
E10 : LO
NONONONONOTTTTTE10 : LO
E10 : LO
E10 : LO

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

(Unsecured, considered good unless otherwise stated)
Loans to employees
Loans to related parties (Refer Note No. 47)

49.63
300.00
----------------------------------------------------------
349.63
349.63
349.63
349.63
349.63
========================
a) The Company has no loans which have significant increase in credit risk and loans which are credit impaired. (Refer Note

18.10
456.52
----------------------------------------------------------
474.62
474.62
474.62
474.62
474.62
========================

7.63
497.57
----------------------------------------------------------
505.20
505.20
505.20
505.20
505.20
========================

25.78
300.00
----------------------------------------------------------
325.78
325.78
325.78
325.78
325.78
========================

No. 44)

198

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

E 11 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL AL AL AL AL ASSSSSSSSSSEEEEETSTSTSTSTS
E 11 : OT
NONONONONOTTTTTE 11 : OT
E 11 : OT
E 11 : OT

Term deposits and others
Loan to related parties

(Unsecured, considered good unless otherwise stated)
Security deposits (Refer ‘a’ below)
Interest accrued but not due on
-
-
Deposits with original maturity of more
than 12 months (Refer note 18)
Mark to market forward contracts
Other receivable

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

750.21

744.64

0.16
140.75
45.54

-
99.42
-

50.57

29.89
6.71
-

55.86

45.66
6.66
761.26

----------------------------------------------------------
936.66
936.66
936.66
936.66
936.66
========================

----------------------------------------------------------
844.06
844.06
844.06
844.06
844.06
========================

-
-
----------------------------------------------------------
87.17
87.17
87.17
87.17
87.17
========================

462.80
234.35
----------------------------------------------------------
1,566.59
1,566.59
1,566.59
1,566.59
1,566.59
========================

a)

Security deposits are not in the nature of loans hence classified as part of other financial assets.

E 12 : INCCCCCOOOOOMMMMME TAE TAE TAE TAE TAXXXXX
E 12 : IN
E 12 : IN
NONONONONOTTTTTE 12 : IN
E 12 : IN

The major components of income tax expense for the years
ended March 31, 2020 and March 31, 2019 are:
nd lossssss:::::
nd los
nd los
ofit a
ofit a
t of prrrrrofit a
t of p
t of p
SSSSStttttaaaaattttteeeeemememememennnnnt of p
ofit and los
nd los
ofit a
t of p
r loss ses ses ses ses sectctctctctioioioioionnnnn
r los
r los
ofit o
ofit o
PPPPPrrrrrofit o
ofit or los
r los
ofit o
x Exx Expppppeeeeennnnnsesesesese:::::
x Exx Ex
TTTTTaaaaax Ex
a) Current tax
b) Adjustments in respect of relating to earlier years
c) Deferred tax

r lossssss
r los
r los
ofit o
t of prrrrrofit o
ofit o
t of p
se rse reeeeepppppooooorrrrrttttteeeeed id id id id in tn tn tn tn the she she she she stttttaaaaattttteeeeemememememennnnnt of p
t of p
se rse r
IIIIIncncncncncooooome tme tme tme tme taaaaax exx exx exx exx expppppeeeeennnnnse r
ofit or los
r los
ofit o
t of p

OOOOOCCCCCI seI seI seI seI sectctctctctioioioioionnnnn
he yearrrrr:::::
he yea
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI dI dI dI dI duuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea
he yea

Net loss/(gain) on remeasurements of defined benefit plans
Income tax on items that will be reclassified subsequently
to statement of profit and loss

IIIIIncncncncncooooome tme tme tme tme taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo OCCCCCIIIII

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

421.00
26.79
141.83
---------------------------------------------------------
589.62
589.62
589.62
589.62
589.62
========================

825.78
193.01
16.66
---------------------------------------------------------
1,035.45
1,035.45
1,035.45
1,035.45
1,035.45
========================

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

(47.23)
346.57

---------------------------------------------------------
299.34
299.34
299.34
299.34
299.34
========================

(70.83)
-

---------------------------------------------------------
(70.83)
(70.83)
(70.83)
(70.83)
(70.83)
========================

Pearl Global Industries Limited     Annual Report 2019-20

199

Notes
to standalone financial statements for the year ended March 31, 2020

OOOOOtttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititity Sy Sy Sy Sy Seeeeectctctctctioioioioionnnnn
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax rx rx rx rx relelelelelaaaaattttteeeeed td td td td to ito ito ito ito iteeeeemmmmms rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in Rn Rn Rn Rn Retetetetetaaaaaiiiiinenenenened Ed Ed Ed Ed Eaaaaarrrrrnnnnniiiiinnnnngggggsssss:::::

Implementation of Ind AS 116: Leases

NNNNNet aet aet aet aet amoumoumoumoumounnnnnt cht cht cht cht chaaaaargrgrgrgrgeeeeed td td td td to Oo Oo Oo Oo Otttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititityyyyy

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

102.38
---------------------------------------------------------
102.38
102.38
102.38
102.38
102.38
========================

-
---------------------------------------------------------
-----
========================

ch 31, 2020
ch 31, 2020
ic taaaaax rx rx rx rx raaaaattttte foe foe foe foe for Mr Mr Mr Mr Maaaaarrrrrch 31, 2020
ic t
ic t
he accccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit mofit mofit mofit mofit muuuuullllltttttiiiiippppplllllieieieieied bd bd bd bd by Iy Iy Iy Iy Indndndndndiaiaiaiaia’’’’’s dos dos dos dos domesmesmesmesmestttttic t
he ac
he ac
n of taaaaax exx exx exx exx expppppeeeeennnnnse ase ase ase ase and tnd tnd tnd tnd the ac
n of t
n of t
a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of t
ch 31, 2020
ch 31, 2020
ic t
he ac
n of t

ch 31, 2019.
ch 31, 2019.
aaaaand Mnd Mnd Mnd Mnd Maaaaarrrrrch 31, 2019.
ch 31, 2019.
ch 31, 2019.

Accounting profit before tax from continuing operations

ofit befoefoefoefoeforrrrre ie ie ie ie incncncncncooooome tme tme tme tme taaaaaxxxxx
ofit b
ofit b
AAAAAccccccccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrofit b
ofit b
At India’s statutory income tax rate of 34.944% (March 31, 2019: 34.944%)
Adjustments in respect of current income tax of previous years
ich arrrrreeeee
ich a
ich a
ct of the ahe ahe ahe ahe amoumoumoumoumounnnnnttttts ws ws ws ws whhhhhich a
ct of t
ct of t
x effe
x effe
TTTTTaaaaax effe
x effect of t
ich a
ct of t
x effe
le) for tr tr tr tr taaaaax pux pux pux pux purprprprprposesosesosesosesoses:::::
le) fo
le) fo
le/(tttttaaaaaxabxabxabxabxable) fo
le/(
le/(
NNNNNooooonnnnn-----dedededededdddductuctuctuctuctibibibibible/(
le) fo
le/(
Expenses not deducted for tax purposes
Income exempted from income tax
Impact of tax at different tax rate and Others

At the income tax rate of 34.944% (March 31, 2019: 34.944 %)
Income tax expense reported in the statement of profit and loss

bbbbb))))) DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx:::::

DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
he fohe follllllololololowwwwwiiiiinnnnnggggg :::::
he fohe fo
Provision for employee benefits
Expenses allowed in the year of payment
Unaborsbed Losses
Lease Liabilities
Mark to Mark Forward Contracts - Cash Flow Hedge
Others

(A)

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

1,090.51
---------------------------------------------------------

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

3,185.65
---------------------------------------------------------

381.07
26.79

1,113.19
193.01

223.61
(137.34)
95.50
---------------------------------------------------------
589.63
589.62
---------------------------------------------------------

576.44
(676.97)
(170.21)
---------------------------------------------------------
1,035.46
1,035.45
---------------------------------------------------------

(Amount in ` Lakh, unless otherwise stated)

e sheetetetetet
e she
BBBBBaaaaalllllaaaaancncncncnce she
e she
e she

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

442.25
197.89
17.07
1,065.71
346.57
167.20
---------------------------------------------------------
2,236.69
2,236.69
2,236.69
2,236.69
2,236.69
---------------------------------------------------------

386.77
134.25
543.17
-

100.50
---------------------------------------------------------
1,164.69
1,164.69
1,164.69
1,164.69
1,164.69
---------------------------------------------------------

200

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

bbbbb))))) DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx : : : : : (((((CCCCCooooonnnnntttttddddd.).).).).)

DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
he fohe follllllololololowwwwwiiiiinnnnnggggg :::::
he fohe fo
Property, plant and equipment
Right to use assets
Fair valuation of mutual fund
Borrowing (EIR)
Others

MAT Credit Entitlement

(B)

(C)

ies) (Net)et)et)et)et)
ies) (N
ies) (N
l deferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets/(s/(s/(s/(s/(llllliabiabiabiabiabiitiitiitiitiities) (N
l defe
l defe
TTTTTotototototaaaaal defe
ies) (N
l defe

(A-B+C)

se/incncncncncooooomememememe:::::
se/i
se/i
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax exx exx exx exx expppppeeeeennnnnse/i
se/i

he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g :
he fohe fo
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets rs rs rs rs relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
Provision for employee benefits
Expenses allowed in the year of payment
Unaborsbed losses
Lease Liabilities
Mark to Mark Forward Contracts - Cash Flow Hedge
Others

he fohe follllllololololowwwwwiiiiinnnnng :g :g :g :g :
he fohe fo
DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax lx lx lx lx liabiabiabiabiabilililililititititity ry ry ry ry relelelelelaaaaatttttes tes tes tes tes to to to to to the fo
Property, plant and equipment
Right to use assets
Fair valuation of mutual fund
Borrowing (EIR)
MAT Credit Entitlement
Others

et deferrrrrrrrrreeeeed td td td td taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeee
et defe
NNNNNet defe
et defe
et defe

The above net deferred tax change is represented by amounts:
Recognised in statement of profit and loss
Recognised in other comprehensive income
Recongnised in Retained Earning - Implementation of Ind AS 116: Leases

(Amount in ` Lakh, unless otherwise stated)

e sheetetetetet
e she
BBBBBaaaaalllllaaaaancncncncnce she
e she
e she

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

1,434.36
913.56
7.93
8.46
197.55
---------------------------------------------------------
2,561.86
2,561.86
2,561.86
2,561.86
2,561.86
---------------------------------------------------------
76.85
---------------------------------------------------------
(248.31)
(248.31)
(248.31)
(248.31)
(248.31)
---------------------------------------------------------

1,425.22
-
-
9.23
315.29
---------------------------------------------------------
1,749.74
1,749.74
1,749.74
1,749.74
1,749.74
---------------------------------------------------------
244.59
---------------------------------------------------------
(340.46)
(340.46)
(340.46)
(340.46)
(340.46)
---------------------------------------------------------

(Amount in ` Lakh, unless otherwise stated)

nd lossssss
nd los
nd los
ofit a
ofit a
t of prrrrrofit a
t of p
t of p
SSSSStttttaaaaattttteeeeemememememennnnnt of p
ofit and los
nd los
ofit a
t of p
As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

55.48
63.64
(526.10)
1,065.71
346.57
66.70
---------------------------------------------------------
1,072.00
1,072.00
1,072.00
1,072.00
1,072.00

9.14
913.56
7.93
(0.77)
-
(117.74)
---------------------------------------------------------
812.12
812.12
812.12
812.12
812.12
---------------------------------------------------------
(259.89)
(259.89)
(259.89)
(259.89)
(259.89)
========================

141.83
(299.35)
(102.38)

(12.33)
129.18
(56.29)
-
-
(30.84)
---------------------------------------------------------
29.72
29.72
29.72
29.72
29.72

52.96
-
(33.84)
(2.57)
(103.08)
203.75
---------------------------------------------------------
117.22
117.22
117.22
117.22
117.22
---------------------------------------------------------
87.50
87.50
87.50
87.50
87.50
========================

16.67
70.83
-

c) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

d) MAT paid can be carried forward for a period of 15 years and can be set off against the future tax liabilities. MAT is recognised
as a deferred tax asset only when the asset can be measured reliably and it is probable that the future economic benefit associated
with the asset will be realised.

Pearl Global Industries Limited     Annual Report 2019-20

201

Notes
to standalone financial statements for the year ended March 31, 2020

E 13 : NON CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX AX AX AX AX ASSSSSSSSSSEEEEETTTTT
E 13 : NO
NONONONONOTTTTTE 13 : NO
E 13 : NO
E 13 : NO

Advance income tax
(Net of provision of ` 1,288.03 Lakh (March 31, 2019 : ` 1,032.42 Lakh)

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

469.39

303.15

---------------------------------------------------------
469.39
469.39
469.39
469.39
469.39
========================

---------------------------------------------------------
303.15
303.15
303.15
303.15
303.15
========================

E 14 : OTHHHHHEEEEER AR AR AR AR ASSSSSSSSSSEEEEETSTSTSTSTS
E 14 : OT
E 14 : OT
NONONONONOTTTTTE 14 : OT
E 14 : OT

(Unsecured, considered good, unless otherwise stated)
Capital advances (Refer Note No. 46b)
Balance with government authorities
Balance with government authorities - considered doubtful
Less: Loss Allowance
Deferred Assets - Security Deposit
Prepaid expenses
Export incentive receivable
Advances to related parties (Refer note no. 47)
Advances to suppliers
Other receivables

E 15 : INVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEESSSSS
E 15 : IN
NONONONONOTTTTTE 15 : IN
E 15 : IN
E 15 : IN

Raw materials
Good in transit- raw material
Work in progress
Finished goods
Scrap Stock
Stores spares & others

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

95.46
91.80
22.74
(22.74)
299.10
13.04
-
-
-
-
----------------------------------------------------------
499.40
499.40
499.40
499.40
499.40
========================

56.66
128.86
22.74
(22.74)
172.09
28.19
-
-
-
-
----------------------------------------------------------
385.80
385.80
385.80
385.80
385.80
========================

-
1,736.80
-
-
43.80
338.02
2,062.72
92.93
692.35
22.49
----------------------------------------------------------
4,989.11
4,989.11
4,989.11
4,989.11
4,989.11
========================

-
1,593.71
-
-
18.21
140.16
1,817.61
95.64
180.52
66.93
----------------------------------------------------------
3,912.78
3,912.78
3,912.78
3,912.78
3,912.78
========================

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

6,485.70
54.45
7,086.13
1,072.32
33.21
60.73
---------------------------------------------------------
14,792.54
14,792.54
14,792.54
14,792.54
14,792.54
========================

5,831.14
16.81
6,234.86
1,283.14
111.08
36.01
---------------------------------------------------------
13,513.04
13,513.04
13,513.04
13,513.04
13,513.04
========================

202

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

E 16 : TRAAAAADDDDDE RE RE RE RE RECECECECECEEEEEIIIIIVVVVVAAAAABBBBBLLLLLEEEEESSSSS
E 16 : TR
NONONONONOTTTTTE 16 : TR
E 16 : TR
E 16 : TR

Trade receivables considered good - secured
Trade receivables considered good - unsecured
Trade receivables which have significant increase in credit risk
Trade receivables - credit impaired
Less: Allowance for Expected Credit Loss

e is as fos fos fos fos follllllololololowswswswsws:::::
e is a
e is a
n loss as as as as allllllololololowwwwwaaaaancncncncnce is a
n losn los
n los
he moveeeeemememememennnnnt it it it it in los
he mov
he mov
a)a)a)a)a) TTTTThe mov
e is a
he mov

he yearrrrr
he yea
he yea
g of t
g of t
BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at bt bt bt bt beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of the yea
he yea
g of t
Loss allowances during the year
Trade receivables written off / written back during the year

he yearrrrr
he yea
he yea
nd of t
nd of t
BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at tt tt tt tt the ehe ehe ehe ehe end of t
nd of the yea
he yea
nd of t

b) Trade receivables are generally on terms of 45- 60 days.

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

-
9,740.45
-
377.32
(377.32)
---------------------------------------------------------
9,740.45
9,740.45
9,740.45
9,740.45
9,740.45
---------------------------------------------------------

374.33
374.33
374.33
374.33
374.33
2.99
-
---------------------------------------------------------
377.32
377.32
377.32
377.32
377.32
========================

-----
11,134.77
-
374.33
(374.33)
---------------------------------------------------------
11,134.77
11,134.77
11,134.77
11,134.77
11,134.77
---------------------------------------------------------

5.155.155.155.155.15
369.18
-
---------------------------------------------------------
374.33
374.33
374.33
374.33
374.33
========================

c) The company’s exposure to credit and currency risk, and loss allowances related to trade receivables are disclosed in note 44.

d) Due from related parties is ` 2,125.58 lakh (March 31, 2019: ` 2,673.53 lakh) (Refer note no. 47).

e) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any

other persons.

E 17 : CASSSSSH AH AH AH AH ANNNNND CD CD CD CD CAAAAASSSSSH EQH EQH EQH EQH EQUUUUUIIIIIVVVVVAAAAALLLLLEEEEENNNNNTSTSTSTSTS
E 17 : CA
E 17 : CA
NONONONONOTTTTTE 17 : CA
E 17 : CA

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

Balances with banks:
Current account
-
- Deposits with original maturity of less than 3 months
Cash on hand
Cheque/drafts on hand

1,806.62
104.23
13.54
135.38
---------------------------------------------------------
2,059.77
2,059.77
2,059.77
2,059.77
2,059.77
========================
For the purpose of the statement of cash flow, the cash and cash equivalent are same given above.

a)

1,937.13
50.00
7.95
239.56
---------------------------------------------------------
2,234.64
2,234.64
2,234.64
2,234.64
2,234.64
========================

Pearl Global Industries Limited     Annual Report 2019-20

203

Notes
to standalone financial statements for the year ended March 31, 2020

E 18 : OTHHHHHEEEEER BR BR BR BR BAAAAANNNNNK BK BK BK BK BAAAAALLLLLAAAAANNNNNCCCCCEEEEE
E 18 : OT
NONONONONOTTTTTE 18 : OT
E 18 : OT
E 18 : OT

Earmarked balances with banks

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Unpaid dividend account
Deposits with original maturity of more than 3 months but less than 12 months

Deposits with original maturity of more than 12 months
Balance with bank (Considered doubtful)
Less: Loss Allowance

26.83
1,427.18
761.26
0.03
(0.03)
---------------------------------------------------------
2,215.28
2,215.28
2,215.28
2,215.28
2,215.28
761.26
761.26
761.26
761.26
761.26
---------------------------------------------------------
1,454.01
1,454.01
1,454.01
1,454.01
1,454.01
========================
a) Out of the total Fixed Deposits, the deposit with carrying value of `134.03 lakh (March 31, 2019 ` 1,853.28 lakh) are

31.85
899.76
45.54
0.03
(0.03)
---------------------------------------------------------
977.15
977.15
977.15
977.15
977.15
45.54
45.54
45.54
45.54
45.54
---------------------------------------------------------
931.61
931.61
931.61
931.61
931.61
========================

Less: Amount disclosed under “Other Financial Assets” (Refer Note No.11)

pledged as security with various banks.

E 19 : SHAAAAARRRRRE CAE CAE CAE CAE CAPPPPPIIIIITTTTTAAAAALLLLL
E 19 : SH
E 19 : SH
NONONONONOTTTTTE 19 : SH
E 19 : SH

AAAAAuuuuuttttthohohohohorrrrriseiseiseiseiseddddd
51,440,000* (March 31, 2019: 51,440,000) equity shares of ` 10 each
10,000* (March 31, 2019: 10,000) 4% Non Cumulative Redeemable
Preference Shares of ` 10 each
3,256,000* (March 31, 2019: 3,256,000) 10.5% Non Cumulative
Redeemable Preference Shares of ` 100 each

IIIIIssssssssssueueueueueddddd, s, s, s, s, subscubscubscubscubscrrrrribibibibibeeeeed ad ad ad ad and pnd pnd pnd pnd paaaaaid uid uid uid uid uppppp
21,663,937* (March 31, 2019: 21,663,937) Equity Shares
of ` 10 each fully paid up

* Number of Shares are given in absolute numbers.

a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of is
n of issssssueueueueued ad ad ad ad and snd snd snd snd subscubscubscubscubscrrrrribibibibibeeeeed shd shd shd shd shaaaaarrrrre ce ce ce ce caaaaapppppitititititaaaaalllll:::::
n of is
n of is
n of is
e of ````` 10 each
e of 
EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre of 
e of 
 10 each
 10 each
 10 each
e of 
 10 each

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 1, 2018
il 1, 2018
il 1, 2018
il 1, 2018
il 1, 2018
Changes during the year

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Changes during the year

BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

5,144.00
1.00

3,256.00

5,144.00
1.00

3,256.00

---------------------------------------------------------
8,401.00
8,401.00
8,401.00
8,401.00
8,401.00
---------------------------------------------------------

---------------------------------------------------------
8,401.00
8,401.00
8,401.00
8,401.00
8,401.00
---------------------------------------------------------

2,166.39

2,166.39

---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
========================

---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
========================

. of shaaaaarrrrreseseseses
. of sh
NNNNNooooo. of sh
. of sh
. of sh
n ‘Lakkkkkhhhhh’)’)’)’)’)
n ‘La
(((((iiiiin ‘La
n ‘La
n ‘La
---------------------------------------------------------
216.639
-
---------------------------------------------------------
216.639
216.639
216.639
216.639
216.639
---------------------------------------------------------
-
---------------------------------------------------------
216.639
216.639
216.639
216.639
216.639
---------------------------------------------------------

AAAAAmoumoumoumoumounnnnnttttt

---------------------------------------------------------
2,166.39
-
---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
---------------------------------------------------------
-
---------------------------------------------------------
2,166.39
2,166.39
2,166.39
2,166.39
2,166.39
---------------------------------------------------------

204

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

ached td td td td to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses:::::
ache
s/ rigigigigighhhhhttttts as as as as attttttttttache
ache
s/ rs/ r
s/ r
bbbbb))))) TTTTTeeeeerrrrrmmmmms/ r
ache

The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution
of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
For the year ended March 31, 2020, the Board of Directors has not proposed any dividend for distribution to shareholders.
For the year ended March 31, 2019, the amount of per share dividend proposed as distribution to equity shareholders was ‘
3.00 per share.

he Commmmmpppppaaaaannnnnyyyyy
he Co
he Co
n 5% shaaaaarrrrres ies ies ies ies in tn tn tn tn the Co
n 5% sh
n 5% sh
g morrrrre te te te te thhhhhaaaaan 5% sh
g mo
g mo
rs holdldldldldiiiiinnnnng mo
rs ho
rs ho
ils of shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ho
ils of sh
ils of sh
ccccc))))) DDDDDetetetetetaaaaails of sh
he Co
n 5% sh
g mo
rs ho
ils of sh

me of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelderrrrr
me of Sh
me of Sh
NNNNNaaaaame of Sh
me of Sh

Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mr. Sanjiv Dhireshbhai Shah

TTTTTotototototaaaaalllll

E 20 : OTHHHHHEEEEER EQR EQR EQR EQR EQUUUUUIIIIITTTTTYYYYY
E 20 : OT
E 20 : OT
NONONONONOTTTTTE 20 : OT
E 20 : OT

General reserve
Securities premium
Capital redemption reserve
Amalgamation reserve
Retained earnings
Other Comprehensive Income - Cash Flow Hedge Reserve (net of tax)

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
. of shaaaaarrrrreseseseses
. of sh
. of sh
NNNNNooooo. of sh
. of sh

. of shaaaaarrrrreseseseses
. of sh
. of sh
HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % NNNNNooooo. of sh
. of sh

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

4,413,635
2,862,145
6,947,621
1,553,274
----------------------------------------------------------
15,776,675
15,776,675
15,776,675
15,776,675
15,776,675
========================

20.37
13.21
32.07
7.17
----------------------------------------------------------
72.82
72.82
72.82
72.82
72.82
========================

4,413,635
2,862,145
6,947,621
-
----------------------------------------------------------
14,223,401
14,223,401
14,223,401
14,223,401
14,223,401
========================

HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g %

20.37
13.21
32.07
-
----------------------------------------------------------
65.65
65.65
65.65
65.65
65.65
========================

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

4,204.36
17,103.90
95.00
625.95
7,037.53
(645.22)
---------------------------------------------------------
28,421.53
28,421.53
28,421.53
28,421.53
28,421.53
========================

4,204.36
17,103.90
95.00
625.95
7,422.88
-
---------------------------------------------------------
29,452.08
29,452.08
29,452.08
29,452.08
29,452.08
========================

For Movement during the period in Other Equity, refer “Statement of Changes in Equity”.

I.I.I.I.I.
ose of reseeseeseeseeserrrrrvvvvveseseseses
ose of r
nd purprprprprpose of r
ose of r
nd pu
IIIIII.I.I.I.I. NNNNNaaaaatttttuuuuurrrrre ae ae ae ae and pu
nd pu
ose of r
nd pu

a)a)a)a)a) GGGGGeeeeenenenenenerrrrraaaaal rl rl rl rl reseeseeseeseeserrrrrvvvvveeeee

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve
pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under
the Companies Act, 2013.
SSSSSeeeeecucucucucurrrrrititititities Pies Pies Pies Pies Prrrrreeeeemmmmmiuiuiuiuiummmmm
The amount received in excess of face value of the equity shares is recognised in securities premium. The reserve will be
utilised in accordance with the provisions of the Companies Act, 2013.

bbbbb)))))

ccccc))))) CCCCCaaaaapppppitititititaaaaal Rl Rl Rl Rl Reeeeedededededemmmmmptptptptptioioioioion Rn Rn Rn Rn Reseeseeseeseeserrrrrvvvvveeeee

This Reserve has been created at the time of merger of other companies in earlier years in accordance with the provisions
of the Companies Act, 2013.

Pearl Global Industries Limited     Annual Report 2019-20

205

Notes
to standalone financial statements for the year ended March 31, 2020

ddddd))))) AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioion Rn Rn Rn Rn Reseeseeseeseeserrrrrvvvvveeeee

This Reserve has been created at the time of amalgamation of other companies in earlier years in accordance with the
provisions of the Companies Act, 2013.

e)e)e)e)e) RRRRRetetetetetaaaaaiiiiinenenenened Ed Ed Ed Ed Eaaaaarrrrrnnnnniiiiinnnnngggggsssss

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends
or other distributions paid to shareholders. Out of the above, reserve on account of revaluation of assets of ` 398.64
lakh (March 31, 2019 396.76 lakh) is not avaliable for distribution.

fffff ))))) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee

This reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated
portion of hedging instruments entered into for cash flow hedges. This reserve will be reclassified to statement of profit
and loss only when the hedged transaction affects the profit or loss.

E 21 : LONNNNNG TEG TEG TEG TEG TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS
E 21 : LO
E 21 : LO
NONONONONOTTTTTE 21 : LO
E 21 : LO

Corporate loan [refer note a(i), a(ii) & a(iii) below]
Vehicle loans [refer note a(iv) below]

From banks (secured)
-
-
From financials institutional (secured)
-

Vehicle loans [refer note a(iv) below]

Less: Amount disclosed under other financial liabilities as
‘Current maturities of long-term borrowings’ (refer note 22)

e of secucucucucurrrrrititititity foy foy foy foy for ser ser ser ser secucucucucurrrrreeeeed lod lod lod lod loaaaaannnnns as as as as arrrrre :e :e :e :e :
e of se
e of se
a)a)a)a)a) TTTTThe nhe nhe nhe nhe naaaaatttttuuuuurrrrre of se
e of se

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

5,178.62
93.22

3,029.72
48.93

1,451.25
91.00

766.84
81.29

112.39
----------------------------------------------------------
5,384.23
5,384.23
5,384.23
5,384.23
5,384.23
-

106.50
----------------------------------------------------------
3,185.15
3,185.15
3,185.15
3,185.15
3,185.15
-

38.85
----------------------------------------------------------
1,581.10
1,581.10
1,581.10
1,581.10
1,581.10
1,581.10

38.91
----------------------------------------------------------
887.04
887.04
887.04
887.04
887.04
887.04

----------------------------------------------------------
5,384.23
5,384.23
5,384.23
5,384.23
5,384.23
========================

----------------------------------------------------------
3,185.15
3,185.15
3,185.15
3,185.15
3,185.15
========================

----------------------------------------------------------
-----
========================

----------------------------------------------------------
-----
========================

(i) Corporate Term Loan (Kotak Bank) is secured by charge first and exclusive charge over fixed assets and plant and

machinery.

(ii) Corporate  Term  Loan  (Andhra  Bank)  is  secured  by  first  and  exclusive  charge  on  the  entire  fixed  assets  including
machineries, land and building at Chennai and Bangalore Plant of the Company. In addition, Equitable Mortgage of
Land & Building located at Survey No- 262A in Aryapakkam Village at Kancheepuram measuring 4.8053 acre in
Company’s name.

(iii) Corporate Term Loan (HDFC Bank) is secured by exclusive charge over movable fixed aseets of the Company, both
present and future. The loan is also secured by personal guarantee of one of the Promoter Director of the Company and
exclusive charge by way of equitable mortagage on Industrial Plot no.446, Udyog Vihar, Phase- V, Gurugram, Haryana.

(iv) Corporate Term Loan (IndusInd Bank) is secured by exclusive charge over movable fixed aseets of the Company, both
present and future. The loan is secured by exclusive charge by way of equitable mortagage on Industrial Plot no.51,
Sector-32, Gurugram, Haryana.

(v) Corporate Term Loan (RBL Bank) is secured by exclusive charge over movable fixed aseets of the Company, both
present and future. The loan is secured by exclusive charge by way of equitable mortagage on Industrial Plot no.751,
Pace City,  Sector-37, Gurugram, Haryana.

(vi) Vehicle loans are secured against hypothecation of respective vehicles.

206

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

ofileofile- se- se- se- se- secucucucucurrrrreeeeed lod lod lod lod loaaaaannnnnsssss
ofileofile
bbbbb))))) MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile

MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of se
ofile of secucucucucurrrrreeeeed td td td td teeeeerrrrrm lom lom lom lom loaaaaannnnnsssss
ofile of se
ofile of se
ofile of se
s set out bt bt bt bt beloeloeloeloelow :w :w :w :w :
s set ou
is ais ais ais ais as set ou
s set ou
s set ou

Term loan from banks are repayable in
monthly/quarterly/yearly installments
Vehicle loans from banks and financial
institutions are repayable in monthly installments

2020-21
2020-21
2020-21
2020-21
2020-21

2021-22
2021-22
2021-22
2021-22
2021-22

2022-23
2022-23
2022-23
2022-23
2022-23

1,451.25

1,424.16

1,577.20

BBBBBeeeeeyoyoyoyoyondndndndnd
2023-24
2023-24
2023-24
2023-24
2023-24

2,177.25

129.85

64.75

77.35

63.51

c) The term loan(s) carries rate of interest ranging between 9.75% to 12.00% per annum.

E 21A : SHOOOOORRRRRT TET TET TET TET TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS
E 21A : SH
E 21A : SH
NONONONONOTTTTTE 21A : SH
E 21A : SH

Working capital loan from banks(secured)
Rupee loan [refer note (a) below]
-

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

15,251.01
---------------------------------------------------------
15,251.01
15,251.01
15,251.01
15,251.01
15,251.01
========================

16,182.41
---------------------------------------------------------
16,182.41
16,182.41
16,182.41
16,182.41
16,182.41
========================

a) The nature of Security for short term borrowings are as under:

-

First pari-passu charge on movable fixed assets and whole of current assets including stocks of raw material, semi finished
goods, finished goods, book debts, consumable stores and spares.

- Mortgage of the properties situated at Plot No. H -597-603, RICCO Industrial Area, Bhiwadi, Distt. Alwar, Rajasthan

and Plot No 16-17, Phase VI, Udyog Vihar,Gurgoan (Haryana).
Fixed Deposit of ` 58 lakhs (March 31, 2019: ` 58 lakhs)
Personal Guarantee by the promoter director of the Company

-
-

(Amount in ` Lakh, unless otherwise stated)

E 22 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL LL LL LL LL LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS
E 22 : OT
E 22 : OT
NONONONONOTTTTTE 22 : OT
E 22 : OT

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

Security deposit
Book overdraft
Current maturities of long-term borrowings (refer no. 21)
Interest accrued but not due on borrowings
Unpaid dividends
Financial Liabilites at Fair Value through OCI-Cash Flow Hedge
Creditors for capital goods
Others

246.97
-
-
-
-
-
-
-
----------------------------------------------------------
246.97
246.97
246.97
246.97
246.97
========================

222.00
-
-
-
-
-
-
-
----------------------------------------------------------
222.00
222.00
222.00
222.00
222.00
========================

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

-
26.87
1,581.10
37.48
31.85
991.80
30.21
48.19
----------------------------------------------------------
2,747.50
2,747.50
2,747.50
2,747.50
2,747.50
========================

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

-
150.48
887.04
24.67
26.83
-
849.25
-
----------------------------------------------------------
1,938.27
1,938.27
1,938.27
1,938.27
1,938.27
========================

NNNNNotototototeseseseses:::::
a) The company’s exposure to currency and liquidity risk related to trade payables is disclosed in note 44.
b) There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of the Companies

Act, 2013 as at the year end.

c) Refer Note No. 21 for the terms and conditions, nature of security and maturity profile of the current maturities of long-

term borrowings (forming part of long term borrowings of the Company).

Pearl Global Industries Limited     Annual Report 2019-20

207

Notes
to standalone financial statements for the year ended March 31, 2020

E 23 : PROVOVOVOVOVIIIIISSSSSIIIIIOOOOONSNSNSNSNS
E 23 : PR
NONONONONOTTTTTE 23 : PR
E 23 : PR
E 23 : PR

PPPPPrrrrrovovovovovisioisioisioisioision fon fon fon fon for er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit
nefitsssss
nefit
nefit
nefit
Provision for compensated absenses (Refer note 39)
Provision for gratuity (Refer note 39)

E 24 : OTHHHHHEEEEER LR LR LR LR LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS
E 24 : OT
E 24 : OT
NONONONONOTTTTTE 24 : OT
E 24 : OT

Advance received against sale of land
Deferred government grant
Deferred rental income
Statutory dues
Others

E 25 : TRAAAAADDDDDE PE PE PE PE PAAAAAYYYYYAAAAABBBBBLLLLLEEEEE
E 25 : TR
E 25 : TR
NONONONONOTTTTTE 25 : TR
E 25 : TR

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

324.96
556.18
----------------------------------------------------------
881.14
881.14
881.14
881.14
881.14
========================

292.34
417.74
----------------------------------------------------------
710.08
710.08
710.08
710.08
710.08
========================

23.96
33.39
----------------------------------------------------------
57.35
57.35
57.35
57.35
57.35
========================

17.59
52.45
----------------------------------------------------------
70.04
70.04
70.04
70.04
70.04
========================

(Amount in ` Lakh, unless otherwise stated)

NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

2,963.62
8.58
25.71
-
-
----------------------------------------------------------
2,997.91
2,997.91
2,997.91
2,997.91
2,997.91
========================

3,010.49
9.58
56.89
-
-
----------------------------------------------------------
3,076.96
3,076.96
3,076.96
3,076.96
3,076.96
========================

CCCCCuuuuurrrrrrrrrreeeeennnnnttttt

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

-
145.61
31.91
590.78
46.88
----------------------------------------------------------
815.18
815.18
815.18
815.18
815.18
========================

ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

-
145.61
32.56
659.72
-
----------------------------------------------------------
837.89
837.89
837.89
837.89
837.89
========================

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

Total Outstanding dues of Micro and Small enterprises
Total Outstanding dues of Creditors other than Micro and Small enterprises

63.70
10,450.22
---------------------------------------------------------
10,513.92
10,513.92
10,513.92
10,513.92
10,513.92
========================
a) Trade payable are generally on a credit period of not more than 90 days except in case of Micro & Small Enterprises which

331.05
8,800.36
---------------------------------------------------------
9,131.41
9,131.41
9,131.41
9,131.41
9,131.41
========================

are setlled within 45 days.

b) This amount includes amount due to related parties amounting to ` 1,038.81 lakh (March 31, 2019: ` 2,736.01 lakh) (Refer

Note No. 47)

c) As per Schedule III of the Companies Act, 2013 and notification number GSR 719 (E) dated November 16, 2007 & as
certified  by  the  Management,  the  amount  due  to  Micro  &  Small  Enterprises  as  defined  in  Micro,  Small  and  Medium
Enterprises Development Act, 2006 is as under :

DDDDDetetetetetaaaaails of d
s definenenenened ud ud ud ud undendendendender Mr Mr Mr Mr MSSSSSMMMMMEEEEED AD AD AD AD Act, 2006
ct, 2006
ct, 2006
s defi
s defi
ises a
ues to Mo Mo Mo Mo Micicicicicrrrrro ao ao ao ao and Snd Snd Snd Snd Smmmmmaaaaallllll El El El El Ennnnnttttteeeeerprprprprprrrrrises a
ises a
ues t
ues t
ils of d
ils of d
ct, 2006
ises as defi
ils of dues t
ct, 2006
s defi
ises a
ues t
ils of d
(i) The amount due thereon remaining unpaid to any supplier at the end of each accounting year

-
-

Principal
Interest

(ii) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and
Medium Enterprises Development Act, 2006 (27 of 2006), along with the amount of the
payment made to the supplier beyond the appointed day during each accounting year.
(iii) The amount of interest due and payable for the period of delay in making payment (which
has been paid but beyond the appointed day during the year) but without adding the
interest specified under the Micro, Small and Medium Enterprises Development Act, 2006.

331.05
-
-

-

63.70
-
-

-

208

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

(iv) The amount of interest accrued and remaining unpaid at the end of each accounting year
(v) The amount of further interest remaining due and payable even in the succeeding year,until
such date when the interest dues as above are actually paid to the small enterprise for the
purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act 2006

-
-

-
-

d)

‘Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is
based on the information available with the Company regarding the status of registration of such vendors under the said Act
and as per the intimation received from them on requests made by the Company. There are no overdue principal amounts /
interest payable amounts for delayed payments to such vendors at the Balance Sheet date except disclosed above.

e) The Company’s exposure to market and liquidity risk related to trade payables are disclosed in Note no. 44.

E 26 : CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX LIX LIX LIX LIX LIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES (NS (NS (NS (NS (NEEEEETTTTT)))))
E 26 : CU
E 26 : CU
NONONONONOTTTTTE 26 : CU
E 26 : CU

Provision for income tax(Net of advance tax Nil (March 31, 2019 ` 649.73 Lakh)

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

-
---------------------------------------------------------
-----
========================

190.16
---------------------------------------------------------
190.16
190.16
190.16
190.16
190.16
========================

E 27 : REVVVVVEEEEENNNNNUUUUUE FRE FRE FRE FRE FROOOOOM OM OM OM OM OPPPPPEEEEERRRRRAAAAATTTTTIIIIIOOOOONSNSNSNSNS
E 27 : RE
E 27 : RE
NONONONONOTTTTTE 27 : RE
E 27 : RE

Sale of product
Job receipts
Other operating revenues

ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss
ue frue fr
RRRRReeeeevvvvveeeeennnnnue fr

a)a)a)a)a) PPPPPeeeeerforforforforforrrrrmmmmmaaaaancncncncnce oe oe oe oe obbbbbllllligigigigigaaaaatttttioioioioionnnnn

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

76,327.18
129.54
6,076.61
---------------------------------------------------------
82,533.33
82,533.33
82,533.33
82,533.33
82,533.33
========================

79,045.96
66.57
4,913.19
---------------------------------------------------------
84,025.72
84,025.72
84,025.72
84,025.72
84,025.72
========================

Revenue is recognised upon transfer of control of products.

During the year, the Company has not entered into long  term contracts with Customers and accordingly  disclsoure  of
unsatisfied or remaining performance obligation (which is affected by several factors like changes in scope of Contracts,
periodic revalidations, adjustment for revenue that has not been materialized, tax laws etc.) is not applicable to the Company.

n of reeeeevvvvveeeeennnnnueueueueue: : : : : The table below presents disaggregated revenues from contracts with customers on the basis of
n of r
bbbbb))))) DisaDisaDisaDisaDisaggggggggggrrrrreeeeegggggaaaaatttttioioioioion of r
n of r
n of r
geographical spread of the operations of the Company. The Company believes that this disaggregation best depicts how the
nature, amount of revenues and cash flows are affected by market and other economic factors:

RRRRReeeeevvvvveeeeennnnnue bue bue bue bue baaaaasesesesesed od od od od on Gn Gn Gn Gn Geeeeeooooogggggrrrrraaaaappppphhhhhyyyyy

India
Outside India

ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss
ue frue fr
RRRRReeeeevvvvveeeeennnnnue fr

(Amount in ` Lakh, unless otherwise stated)

FFFFFooooor tr tr tr tr the yea
he yea
he yea
he year er er er er endendendendendeddddd
he yea
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

FFFFFooooor tr tr tr tr the yea
he yea
he yea
he year er er er er endendendendendeddddd
he yea
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

8,403.09
74,130.24
---------------------------------------------------------
82,533.33
82,533.33
82,533.33
82,533.33
82,533.33
========================

6,019.12
78,006.61
---------------------------------------------------------
84,025.73
84,025.73
84,025.73
84,025.73
84,025.73
========================

Pearl Global Industries Limited     Annual Report 2019-20

209

Notes
to standalone financial statements for the year ended March 31, 2020

ue frue frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnns ws ws ws ws wititititith ch ch ch ch cooooonnnnntttttrrrrractactactactacteeeeed pd pd pd pd prrrrriciciciciceeeee
ue frue fr
n of reeeeevvvvveeeeennnnnue fr
n of r
ccccc))))) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of r
n of r
n of r

(Amount in ` Lakh, unless otherwise stated)

Contracted Price
Less:
Sales Returns
Rebate and Discounts

E 28 : OTHHHHHEEEEER IR IR IR IR INNNNNCCCCCOOOOOMMMMMEEEEE
E 28 : OT
E 28 : OT
NONONONONOTTTTTE 28 : OT
E 28 : OT

Interest Income
- On fixed deposits
- On loans and advances
- On amortisation of investment in preference shares
Other non-operating income:

IT/ SAP income
Rental income
Foreign exchange fluctuation
Profit on sale of current investment - mutual fund
Fair value gain on investments measured at
fair value through profit and loss (net)
Miscellaneous income

E 29 : COSSSSST OT OT OT OT OF RF RF RF RF RAAAAAW MW MW MW MW MAAAAATTTTTEEEEERRRRRIIIIIAAAAAL CL CL CL CL COOOOONSNSNSNSNSUUUUUMMMMMEEEEEDDDDD
E 29 : CO
NONONONONOTTTTTE 29 : CO
E 29 : CO
E 29 : CO

RRRRRaaaaaw Mw Mw Mw Mw Maaaaattttteeeeerrrrriaiaiaiaialllll
Balance at the beginning of the Year
Add:- Purchases during the year

Less:- Balance at the end of the Year

TTTTTotototototaaaaal rl rl rl rl raaaaaw mw mw mw mw maaaaattttteeeeerrrrriaiaiaiaial cl cl cl cl cooooonnnnnsssssuuuuummmmmptptptptptioioioioionnnnn

NONONONONOTTTTTE 30 : PU
E 30 : PU
E 30 : PU
E 30 : PURRRRRCCCCCHHHHHAAAAASSSSSE OE OE OE OE OF SF SF SF SF STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE
E 30 : PU

Purchases during the year

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

82,578.22

84,035.49

44.89
-
---------------------------------------------------------
82,533.33
82,533.33
82,533.33
82,533.33
82,533.33
========================

9.67
0.10
---------------------------------------------------------
84,025.72
84,025.72
84,025.72
84,025.72
84,025.72
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

169.53
80.09
-

98.11
980.53
1,847.44
73.79
29.42

149.14
62.79
12.98

92.02
814.53
989.52
218.20
-

59.86
---------------------------------------------------------
3,338.77
3,338.77
3,338.77
3,338.77
3,338.77
========================

291.44
---------------------------------------------------------
2,630.62
2,630.62
2,630.62
2,630.62
2,630.62
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

5,831.14
29,197.60
---------------------------------------------------------
35,028.74
6,485.70
---------------------------------------------------------
28,543.04
28,543.04
28,543.04
28,543.04
28,543.04
========================

5,193.32
26,707.81
---------------------------------------------------------
31,901.13
5,831.15
---------------------------------------------------------
26,069.98
26,069.98
26,069.98
26,069.98
26,069.98
========================

(Amount in ` Lakh, unless otherwise stated)

FFFFFooooor tr tr tr tr the yea
he yea
he yea
he year er er er er endendendendendeddddd
he yea
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

FFFFFooooor tr tr tr tr the yea
he yea
he yea
he year er er er er endendendendendeddddd
he yea
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

11,981.44
---------------------------------------------------------
11,981.44
11,981.44
11,981.44
11,981.44
11,981.44
========================

16,506.39
---------------------------------------------------------
16,506.39
16,506.39
16,506.39
16,506.39
16,506.39
========================

210

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

E 31 :CHCHCHCHCHAAAAANNNNNGGGGGEEEEES IS IS IS IS IN IN IN IN IN INNNNNVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEES OS OS OS OS OF FIF FIF FIF FIF FINNNNNIIIIISSSSSHHHHHEEEEED GD GD GD GD GOOOOOOOOOODDDDDSSSSS,,,,,
E 31 :
NONONONONOTTTTTE 31 :
E 31 :
E 31 :
 W W W W WOOOOORRRRRK IK IK IK IK IN PN PN PN PN PRRRRROOOOOGGGGGRRRRREEEEESSSSSS AS AS AS AS ANNNNND SD SD SD SD STTTTTOOOOOCCCCCK IK IK IK IK IN TN TN TN TN TRRRRRAAAAADDDDDEEEEE

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

(Amount in ` Lakh, unless otherwise stated)

IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a
he yearrrrr
he yea
he yea
g of t
ies at tt tt tt tt the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t
g of t
ies a
ies a
g of the yea
he yea
g of t
ies a
Work-in-progress
Finished goods
Scrap Stock

he yearrrrr
he yea
he yea
nd of t
nd of t
ies at tt tt tt tt the ehe ehe ehe ehe end of t
ies a
ies a
IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a
nd of the yea
he yea
nd of t
ies a
Work-in-progress
Finished goods
Scrap Stock

se in in in in in innnnnvvvvveeeeennnnntttttooooorrrrry (y (y (y (y (A-A-A-A-A-B)B)B)B)B)
se i
se i
se) / decccccrrrrreaeaeaeaease i
se) / de
se) / de
(I(I(I(I(Incncncncncrrrrreaeaeaeaease) / de
se i
se) / de

(((((AAAAA)))))

(B)(B)
(B)(B)
(B)

E 32 : EMPPPPPLLLLLOOOOOYYYYYEEEEEE BE BE BE BE BEEEEENNNNNEEEEEFIFIFIFIFITS ETS ETS ETS ETS EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE
E 32 : EM
E 32 : EM
NONONONONOTTTTTE 32 : EM
E 32 : EM

Salaries, wages & bonus
Contribution to provident and other fund
Gratuity expense (refer note 39)
Compensated absences (refer note 39)
Staff training & welfare expenses

E 33 : FINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOSSSSSTTTTT
E 33 : FI
NONONONONOTTTTTE 33 : FI
E 33 : FI
E 33 : FI

on term loans,cash credit & working capital facilities
delayed payment of taxes
lease liabilities

Interest expense
-
-
-
Unwinding of discount on security deposit
Other borrowing cost

6,234.86
1,283.14
111.08
---------------------------------------------------------
7,629.08
7,629.08
7,629.08
7,629.08
7,629.08
---------------------------------------------------------

7,086.14
1,072.32
33.21
---------------------------------------------------------
8,191.67
8,191.67
8,191.67
8,191.67
8,191.67
---------------------------------------------------------
(562.59)
(562.59)
(562.59)
(562.59)
(562.59)
========================

3,178.48
3,296.54
286.66
---------------------------------------------------------
6,761.68
6,761.68
6,761.68
6,761.68
6,761.68
---------------------------------------------------------

6,234.86
1,283.14
111.08
---------------------------------------------------------
7,629.08
7,629.08
7,629.08
7,629.08
7,629.08
---------------------------------------------------------
(867.40)
(867.40)
(867.40)
(867.40)
(867.40)
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

13,312.81
904.96
286.05
221.61
291.87
---------------------------------------------------------
15,017.30
15,017.30
15,017.30
15,017.30
15,017.30
========================

11,605.86
789.32
307.19
279.91
208.36
---------------------------------------------------------
13,190.64
13,190.64
13,190.64
13,190.64
13,190.64
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

1,859.50
1.74
300.01
30.32
256.88
---------------------------------------------------------
2,448.45
2,448.45
2,448.45
2,448.45
2,448.45
========================

1,762.85
14.48
-
26.39
350.72
---------------------------------------------------------
2,154.44
2,154.44
2,154.44
2,154.44
2,154.44
========================

Pearl Global Industries Limited     Annual Report 2019-20

211

Notes
to standalone financial statements for the year ended March 31, 2020

E 34 : DEPPPPPRRRRRECECECECECIIIIIAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD AMOMOMOMOMORRRRRTTTTTIIIIISSSSSAAAAATTTTTIIIIIOOOOON EN EN EN EN EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE
E 34 : DE
NONONONONOTTTTTE 34 : DE
E 34 : DE
E 34 : DE

Depreciation of property, plant and equipment (refer note no. 4)
Depreciation & amortisation of Investment Properties (refer note no. 6)
Amortisation of intangible assets (refer note no. 7)
Amortisation of Right-of-use assets (refer note no. 50)

E 35 : OTHHHHHEEEEER ER ER ER ER EXXXXXPPPPPEEEEENSNSNSNSNSEEEEESSSSS
E 35 : OT
E 35 : OT
NONONONONOTTTTTE 35 : OT
E 35 : OT

Manufacturing expense
Consumption of stores & spare parts
Power & fuel
Rent
Rates & taxes
Travelling & conveyance
Freight & clearing charges
Claim to buyers
Repair & maintenance
Plant & machinery
Buildings
Others
Commission
Legal & professional expenses
Security charges
Bank charges
Insurance Expenses
Payment to the auditors (refer note ‘a’ below)
Bad debts and doubtful advances written off
Loss Allowance for doubtful debts and advances
Corporate social responsibility (refer note ‘b’ below)
Loss on mark to market forward contracts
Fair value loss on financial assets measured at fair value through profit and loss
Miscellaneous expenses

TTTTTotototototaaaaalllll

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

1,277.51
85.75
47.70
350.70
---------------------------------------------------------
1,761.66
1,761.66
1,761.66
1,761.66
1,761.66
========================

1,155.77
85.76
47.54
-
---------------------------------------------------------
1,289.07
1,289.07
1,289.07
1,289.07
1,289.07
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

15,421.92
363.05
1,237.27
526.23
110.11
1,284.84
2,059.74
1,356.27

76.87
9.07
337.00
59.54
666.77
304.43
354.08
89.70
28.53
-
47.92
22.15
462.80
-
890.06
---------------------------------------------------------
25,708.34
25,708.34
25,708.34
25,708.34
25,708.34
========================

14,673.60
305.36
1,272.60
922.24
189.92
1,270.82
2,244.25
1,428.01

100.14
14.77
298.94
28.56
458.88
283.72
416.68
85.18
21.05
1.41
391.92
22.76
-
133.64
844.03
---------------------------------------------------------
25,408.48
25,408.48
25,408.48
25,408.48
25,408.48
========================

212

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

rs is as fos fos fos fos follllllololololowswswswsws:::::
rs is a
ade to ao ao ao ao audududududitititititooooors is a
rs is a
ade t
ils of paaaaayyyyymememememennnnnt mt mt mt mt made t
ade t
ils of p
a) DDDDDetetetetetaaaaails of p
ils of p
rs is a
ade t
ils of p

(Amount in ` Lakh, unless otherwise stated)

i)

Statutory audit fee

PPPPPaaaaayyyyymememememennnnnt tt tt tt tt to Ao Ao Ao Ao Audududududitititititooooorrrrr
-
- Other Services
-

Reimbursement of Expenses

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

15.50
10.00
3.03
---------------------------------------------------------
28.53
========================

12.40
6.00
2.65
---------------------------------------------------------
21.05
========================

e is as fos fos fos fos follllllololololowswswswsws:::::
e is a
e is a
ils of Corprprprprpooooorrrrraaaaattttte Se Se Se Se Sooooociaciaciaciacial Rl Rl Rl Rl Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititity (Cy (Cy (Cy (Cy (CSSSSSR) exR) exR) exR) exR) expppppeeeeendndndndndititititituuuuurrrrre is a
ils of Co
ils of Co
b) DDDDDetetetetetaaaaails of Co
e is a
ils of Co

i) Gross amount required to be spent by the Company during
the year(i.e. 2% of Average Net profits of last three years)

ii) Amount spent during the year

-
-

Construction/acquisitions of any asset
For purpose other than above

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

22.14

-
22.15

16.39

-
22.76

c) Miscellaneous expenses includes expense towards purchase of Electoral Bonds amounting to  ` 160.00 Lakh (March 31,
2019:  Nil)  from  State  bank  of  India  under  the  Scheme  -  ‘The  Electoral  Bond  Scheme,  2018’  notified  by  the  Central
Government vide Gazette Notification No. 20 dated January 2, 2018.

E 36 : EXCCCCCEEEEEPPPPPTTTTTIIIIIOOOOONNNNNAAAAAL ITL ITL ITL ITL ITEEEEEMMMMMSSSSS
E 36 : EX
E 36 : EX
NONONONONOTTTTTE 36 : EX
E 36 : EX

(Profit)/loss on sale of fixed assets (Refer Note ‘a’ below)
Impairment of investment in subsidiaries (Refer Note ‘b’ below)

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

(143.29)
27.24
---------------------------------------------------------
(116.05)
(116.05)
(116.05)
(116.05)
(116.05)
========================

(1,719.28)
1,438.36
---------------------------------------------------------
(280.92)
(280.92)
(280.92)
(280.92)
(280.92)
========================

a)

For March 31, 2020, (Profit)/loss on sale of fixed assets includes loss on sale of tangile assets of ` 41.19 lakh (March 31,
2019: ` 36.97 lakh) and profit on account of complusory acquisition of land by the Central Government under National
Highway Act, 1956 of ` 184.47 lakh (March 31, 2019: ` 1756.25 lakh).

b) On March 31,2019, the management of a domestic subsidary company Pearl Apparel Fashion Limited has decided to cease
its existing business operations.Thus the Company has impaired its investments in such subsidary and recognised the same
at its recoverable amount as at March 31,2019 resulting in a net loss of ` 1,438.36 lakh. (Diminution in value of equity
shares: ` 1,617.20 lakh and esclation in value of investment in preference shares: ` 178.84 lakh). Further, during the year
ended March 31, 2020, the management of the aforesaid subsidiary Company, by resolution dated March 20, 2020 has
decided to apply for voluntary liquidation & in effect of above resolution, the Company further impaired its investments by
` 27.24 lakh in such subsidiary and recognised the same at its recoverable amount as at March 31, 2020.

Pearl Global Industries Limited     Annual Report 2019-20

213

Notes
to standalone financial statements for the year ended March 31, 2020

E 37 : COCOCOCOCOMMMMMPPPPPOOOOONNNNNEEEEENNNNNTS OTS OTS OTS OTS OF OF OF OF OF OTTTTTHHHHHEEEEERRRRR
E 37 :
NONONONONOTTTTTE 37 :
E 37 :
E 37 :
CCCCCOOOOOMMMMMPPPPPRRRRREEEEEHHHHHEEEEENSNSNSNSNSIIIIIVVVVVE IE IE IE IE INNNNNCCCCCOOOOOMMMMMEEEEE

AAAAA (((((iiiii)))))

BBBBB

(((((iiiii)))))

IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill not b
nd lossssss
nd los
nd los
ofit a
sified td td td td to po po po po prrrrrofit a
ofit a
sifie
l not be re re re re reeeeeclclclclclaaaaassssssifie
sifie
l not b
l not b
ofit and los
nd los
ofit a
sifie
l not b
Re-measurement gains/ (losses) on defined benefit plans
Income tax expense
IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill bl bl bl bl be re re re re reeeeeclclclclclaaaaassssssifie
nd lossssss
nd los
nd los
ofit a
sified td td td td to po po po po prrrrrofit a
ofit a
sifie
sifie
ofit and los
nd los
ofit a
sifie
Cash Flow Hedging reserve on forward contract
Income tax expense

E 38 : EARRRRRNNNNNIIIIINNNNNGGGGGS PS PS PS PS PEEEEER SR SR SR SR SHHHHHAAAAARRRRRE (EE (EE (EE (EE (EPPPPPS)S)S)S)S)
E 38 : EA
E 38 : EA
NONONONONOTTTTTE 38 : EA
E 38 : EA

Profit attributable to the equity shareholders ( ( ( ( (AAAAA)))))
Number/Weighted average number of equity shares
 (B)
 (B)
 (B)
outstanding at the end of the year (B)
 (B)
Nominal value of Equity shares
A/B) (iiiiin n n n n `)))))
A/B) (
A/B) (
Basic/Diluted Earning per share (((((A/B) (
A/B) (

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

135.15
(47.23)

(991.80)
346.57
---------------------------------------------------------
(557.31)
(557.31)
(557.31)
(557.31)
(557.31)
========================

202.70
(70.83)

-
-
---------------------------------------------------------
131.87
131.87
131.87
131.87
131.87
========================

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

500.89
21,663,937

` 10
2.31
---------------------------------------------------------
2.31
---------------------------------------------------------

2,150.19
21,663,937

` 10
9.93
---------------------------------------------------------
9.93
---------------------------------------------------------

E 39 : GRAAAAATTTTTUUUUUIIIIITTTTTY AY AY AY AY ANNNNND OD OD OD OD OTTTTTHHHHHEEEEER PR PR PR PR POOOOOSSSSSTTTTT-----EEEEEMMMMMPPPPPLLLLLOOOOOYYYYYMMMMMEEEEENNNNNT BT BT BT BT BEEEEENNNNNEEEEEFIFIFIFIFIT PT PT PT PT PLLLLLAAAAANSNSNSNSNS
E 39 : GR
E 39 : GR
NONONONONOTTTTTE 39 : GR
E 39 : GR

a)a)a)a)a) DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnnsssss

The Company makes contribution towards Employees Provident Fund, Employee’s State Insurance scheme and other welfare
schemes. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs.
The  company  during  the  year  recognised  the  following  amount  in  the  Statement  of  profit  and  loss  under  company’s
contribution to defined contribution plan.

Employer’s Contribution to Provident Fund/ Pension Fund
Employer’s Contribution to Employee State Insurance
Employer’s Contribution to Welfare Fund

TTTTTotototototaaaaalllll

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

634.78
241.31
28.88
---------------------------------------------------------
904.97
904.97
904.97
904.97
904.97
========================

492.36
268.79
28.17
---------------------------------------------------------
789.32
789.32
789.32
789.32
789.32
========================

The contribution payable to these schemes by the Company are at the rates specified in the rules of the schemes.

bbbbb))))) DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p
nefit p
nefit p
nefit plllllaaaaannnnnsssss
nefit p

In accordance with Ind AS 19 “Employee benefits”, an actuarial valuation on the basis of “Projected Unit Credit Method”
was carried out, through which the Company is able to determine the present value of obligations. “Projected Unit Credit
Method” recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures
each unit separately to built up the final obligation.
y schemememememe
y sche
iiiii))))) GrGrGrGrGraaaaatttttuuuuuititititity sche
y sche
y sche

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five

214

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service
and salary at retirement age.
a) Gratuity in case of Gurgaon Division (Funded & maintained by Life Insurance Corporation of India)
b) Gratuity in case of Chennai & Banglore Division (Unfunded)

nefitsssss
iiiiiiiiii))))) OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit
nefit
nefit
nefit

As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods
to either be utilised during the service, or encashed. Encashment can be made during the service, on early retirement, on
withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits is determined
based on the seniority and the respective employee’s salary. The Company records an obligation for such compensated
absences in the period in which the employee renders the services that increase this entitlement. The obligation is
measured on the basis of independent actuarial valuation using the projected unit credit method.

Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive Income
in the statement of profit and loss in case of Gratuity. All other expenses related to defined benefit plans are recognised
in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive
Income will not be reclassified to statement of profit and loss hence it is treated as part of retained earnings in the
statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised
when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as past service costs.

ccccc))))) The following tables summarize the components of net benefit expense recognised in the Statement of profit and loss and
the funded status and amounts recognised in the balance sheet for the defined benefit plan and other long term benefits.
These have been provided on accrual basis, based on year end actuarial valuation.

nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn
nefit o
nefit o
CCCCChhhhhaaaaannnnnggggge ie ie ie ie in bn bn bn bn beeeeenefit o
nefit o

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn
nefit o
nefit o
g definenenenened bd bd bd bd beeeeenefit o
g defi
g defi
OpOpOpOpOpeeeeennnnniiiiinnnnng defi
nefit o
g defi
Interest cost
Service cost
Past Service cost
Benefits paid
Actuarial (gain) / loss on obligations
ue of obbbbbllllligigigigigaaaaatttttioioioioionnnnn
ue of o
PPPPPrrrrreseeseeseeseesennnnnt vt vt vt vt vaaaaalllllue of o
ue of o
ue of o
he yearrrrr
he yea
he yea
nd of t
aaaaas as as as as at tt tt tt tt the ehe ehe ehe ehe end of t
nd of t
nd of the yea
he yea
nd of t

617.55
617.55
617.55
617.55
617.55
48.11
111.96
-
(47.38)
(75.64)
654.60
654.60
654.60
654.60
654.60

241.04
241.04
241.04
241.04
241.04
18.78
133.46
-
(24.66)
(70.45)
298.17
298.17
298.17
298.17
298.17

309.93
309.93
309.93
309.93
309.93
24.11
143.13
-
(182.62)
54.37
348.92
348.92
348.92
348.92
348.92

672.77
672.77
672.77
672.77
672.77
51.87
125.98
-
(90.48)
(142.59)
617.55
617.55
617.55
617.55
617.55

165.96
165.96
165.96
165.96
165.96
12.80
124.65
-
(15.86)
(46.51)
241.04
241.04
241.04
241.04
241.04

180.48
180.48
180.48
180.48
180.48
13.92
72.86
-
(150.46)
193.13
309.93
309.93
309.93
309.93
309.93

ddddd))))) The following tables summarise the components of net benefit expense recognised in the Statement of profit or loss and the

funded status and amounts recognised in the balance sheet for the respective plans:

CosCosCosCosCost fot fot fot fot for tr tr tr tr the yea
he year ir ir ir ir inclnclnclnclncludeudeudeudeudeddddd
he yea
he yea
he yea
uuuuundendendendender er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit
nefit
nefit
nefit
nefit

Current service cost
Past service cost
Interest cost
Expected return on plan assets
Actuarial (gain) / loss
NNNNNet cet cet cet cet cosososososttttt

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

111.96
-
48.11
(26.26)
-
133.81
133.81
133.81
133.81
133.81

133.46
-
18.78
-
-
152.24
152.24
152.24
152.24
152.24

143.13
-
24.11
-
54.37
221.61
221.61
221.61
221.61
221.61

125.98
-
51.87
(8.11)
-
169.74
169.74
169.74
169.74
169.74

124.65
-
12.80
-
-
137.45
137.45
137.45
137.45
137.45

72.86
-
13.92
-
193.13
279.91
279.91
279.91
279.91
279.91

Pearl Global Industries Limited     Annual Report 2019-20

215

Notes
to standalone financial statements for the year ended March 31, 2020

ue of the phe phe phe phe plllllaaaaan an an an an assssssetsetsetsetsets as as as as arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws:::::
ue of t
e)e)e)e)e) CCCCChhhhhaaaaannnnnggggges ies ies ies ies in tn tn tn tn the fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of t
ue of t
ue of t

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

Fair value of plan assets
at the beginning
Expected return on plan assets
Contributions
Benefits paid
Actuarial gains / (losses)
on the plan assets
ue of plllllaaaaan an an an an assssssetsetsetsetsets as as as as at tt tt tt tt the ehe ehe ehe ehe en dn dn dn dn d
ue of p
ue of p
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of p
ue of p

388.39

26.26
6.88
(47.38)
(10.93)

363.22
363.22
363.22
363.22
363.22

-

-
-
-
-

-----

I is as fos fos fos fos follllllololololowswswswsws:::::
I is a
I is a
n/loss rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI is a
n/los
n/los
il of actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin/los
il of act
il of act
fffff ))))) DDDDDetetetetetaaaaail of act
I is a
n/los
il of act

-

-
-
-
-

-----

105.16

8.11
352.00
(90.48)
13.60

388.39
388.39
388.39
388.39
388.39

-----

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

-----

-----

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

-----

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

Actuarial gain / (loss) for the year – obligation
Actuarial gain / (loss) for the year - plan assets
Unrecognised actuarial gains/(losses) at the end of year

75.64
(10.93)
64.71
64.71
64.71
64.71
64.71

70.45
-
70.45
70.45
70.45
70.45
70.45

142.59
13.60
156.19
156.19
156.19
156.19
156.19

46.51
-
46.51
46.51
46.51
46.51
46.51

e sheet det det det det daaaaattttte ae ae ae ae arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws:::::
e she
e she
l actuuuuuaaaaarrrrriaiaiaiaial al al al al assssssssssuuuuummmmmptptptptptioioioioionnnnns as as as as at tt tt tt tt the bhe bhe bhe bhe baaaaalllllaaaaancncncncnce she
l act
l act
ggggg ))))) PPPPPrrrrriiiiincincincincincipppppaaaaal act
e she
l act

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

EcEcEcEcEcooooonononononommmmmic aic aic aic aic assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss
1. Discount rate
2. Rate of increase in

compensation levels

DDDDDeeeeemomomomomogggggrrrrraaaaappppphhhhhic aic aic aic aic assssssssssuuuuummmmmptptptptptioioioioionnnnnsssss
1. Expected average remaining

working lives of employees(years)

2. Retirement Age (years)
3. Mortality Rate

WitWitWitWitWithdrhdrhdrhdrhdraaaaawwwwwaaaaal Rl Rl Rl Rl Raaaaattttte (e (e (e (e (AAAAAvvvvveeeeerrrrraaaaaggggge ie ie ie ie innnnn
cccccaaaaase of u
se of u
se of u
se of unnnnnfffffuuuuundendendendended ad ad ad ad amoumoumoumoumounnnnnttttts)s)s)s)s)
se of u
1. Ages from 18 to 30 Years
2. Ages from 30 to 45 Years
3. Ages Above 45 years

0.07
0.05

0.07
0.05

0.07
0.05

0.08
0.06

0.08
0.06

0.08
0.06

20.41

26.28

24.32

20.19

26.02

24.29

58

58

58

58

58

58

Indian Assured Lives Mortality
(2012-14) (modified) ultimate

Indian Assured Lives Mortality
(2006-08) (modified) ultimate

0.03
0.02
0.01

0.06
0.06
0.06

0.05
0.04
0.04

0.03
0.02
0.01

0.04
0.04
0.03

0.04
0.03
0.03

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.

216

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

s) forrrrr
n actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin / (n / (n / (n / (n / (loslosloslosloss) fo
s) fo
s) fo
n act
e adjuuuuussssstttttmememememennnnnttttts os os os os on act
n act
e adj
nd expppppeeeeerrrrrieieieieiencncncncnce adj
e adj
nd ex
e Sheet aet aet aet aet and ex
nd ex
e She
ies reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in tn tn tn tn the Bhe Bhe Bhe Bhe Baaaaalllllaaaaancncncncnce She
e She
ies r
s) / liabiabiabiabiabilililililititititities r
ies r
s) / l
et (assssssetsetsetsetsets) / l
s) / l
et (a
hhhhh))))) NNNNNet (a
et (a
s) fo
n act
e adj
nd ex
e She
ies r
s) / l
et (a
nefit obbbbbllllligigigigigaaaaatttttioioioioion an an an an and pnd pnd pnd pnd plllllaaaaan an an an an assssssetsetsetsetsetsssss.....
nefit o
bbbbbeeeeenefit o
nefit o
nefit o

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

Present value of obligation
Less: Fair value of plan assets
s /( liabiabiabiabiabilililililititititity)y)y)y)y)
s /( l
NNNNNet aet aet aet aet assssssetsetsetsetsets /( l
s /( l
s /( l

654.60
363.22
(291.38)
(291.38)
(291.38)
(291.38)
(291.38)

298.17
-
(298.17)
(298.17)
(298.17)
(298.17)
(298.17)

348.92
-
(348.92)
(348.92)
(348.92)
(348.92)
(348.92)

617.55
388.39
(229.16)
(229.16)
(229.16)
(229.16)
(229.16)

241.04
-
(241.04)
(241.04)
(241.04)
(241.04)
(241.04)

309.93
-
(309.93)
(309.93)
(309.93)
(309.93)
(309.93)

iiiii)))))

Expected contribution for the next year is ` 417.54 Lakh (March 31, 2019: ` 352.13 Lakh) in respect of Gratuity.

s showwwwwn bn bn bn bn beloeloeloeloelowwwww :::::
s sho
s sho
s is a
s is a
r signnnnnificificificificificaaaaannnnnt at at at at assssssssssuuuuummmmmptptptptptioioioioionnnnns is a
r sig
r sig
lysis fo
lysis fo
jjjjj))))) A qA qA qA qA quuuuuaaaaannnnntttttitititititaaaaatttttivivivivive see see see see sennnnnsitsitsitsitsitivivivivivititititity ay ay ay ay annnnnaaaaalysis fo
s is as sho
lysis for sig
s sho
s is a
r sig
lysis fo

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

AAAAA..... DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttteeeee

B.B.B.B.B.

Effect on DBO due to 1%/0.5%
increase in Discount Rate
Effect on DBO due to 1%/0.5%
decrease in Discount Rate

y escaaaaalllllaaaaatttttioioioioion rn rn rn rn raaaaattttteeeee
y esc
y esc
SSSSSaaaaalllllaaaaarrrrry esc
y esc
Effect on DBO due to 1%/0.5%
increase in Salary Escalation Rate
Effect on DBO due to 1%/0.5%
decrease in Salary Escalation Rate

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd )))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd )))))

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
d  leavvvvveeeee
d  lea
d  lea
GrGrGrGrGraaaaatttttuuuuuititititityyyyy EEEEEaaaaarrrrrnenenenened  lea
d  lea
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

(61.88)

(33.60)

(37.00)

(59.83)

(31.94)

(35.10)

72.58

40.04

43.98

70.24

38.86

42.08

73.15

40.33

44.31

70.80

39.38

(63.40)

(34.40)

(37.90)

(61.30)

(32.80)

42.50

36.00

hese not caaaaalculculculculculllllaaaaattttteeeeeddddd.....
hese not c
hese not c
act of chaaaaannnnnggggge de de de de due tue tue tue tue to to to to to these not c
act of ch
act of ch
l & hencncncncnce ie ie ie ie immmmmpppppact of ch
l & he
l & he
e not maaaaattttteeeeerrrrriaiaiaiaial & he
e not m
e not m
o morrrrrtttttaaaaalllllititititity & wy & wy & wy & wy & wititititithdrhdrhdrhdrhdraaaaawwwwwaaaaals als als als als arrrrre not m
o moo mo
o mo
C.C.C.C.C. SSSSSeeeeennnnnsitsitsitsitsitivivivivivititititities dies dies dies dies due tue tue tue tue to mo
hese not c
act of ch
l & he
e not m

k)k)k)k)k) RiskRiskRiskRiskRisk

Discount Rate
Salary Increases

Withdrawals

Morality and disability

Reduction in discount rate in subsequent valuations can increase the liability.
Actual salary increases will increase the defined benefit liability. Increase in salary increase rate
assumption in future valuations which inturn also increase the liability.
Actual  withdrawals  proving  higher  or  lower  than  assumed  withdrawals  and  change  of
withdrawals rates at subsequent valuations can impact defined benefit liability.
Actual details and disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.

n is as fos fos fos fos follllllololololowswswswsws:::::
n is a
nefit obbbbbllllligigigigigaaaaatttttioioioioion is a
n is a
nefit o
ofile of definenenenened bd bd bd bd beeeeenefit o
nefit o
ofile of defi
lllll))))) MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of defi
ofile of defi
n is a
nefit o
ofile of defi

0 to 1 years
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
from 5 years onwards

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(F(F(F(F(Fuuuuundendendendendeddddd)))))

GrGrGrGrGraaaaatttttuuuuuititititityyyyy
(((((UUUUUnnnnnfffffuuuuundendendendendeddddd)))))

55.88
45.58
50.45
36.42
59.87
771.60

9.02
10.49
20.93
38.66
69.66
599.68

50.15
29.75
52.65
58.90
52.38
822.27

3.06
5.18
11.52
22.56
43.20
518.11

Pearl Global Industries Limited     Annual Report 2019-20

217

Notes
to standalone financial statements for the year ended March 31, 2020

E 40 : CAPPPPPIIIIITTTTTAAAAAL ML ML ML ML MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT
E 40 : CA
NONONONONOTTTTTE 40 : CA
E 40 : CA
E 40 : CA

For the purpose of Company’s capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the
shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders or issue
new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The
Company includes within net debt, interest bearing borrowings, trade and other payables, less cash and cash equivalents.

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

et debt (AAAAA)))))
et debt (
et debt (
NNNNNet debt (
et debt (

Equity share capital (Refer to note 19)
Other equity (Refer to note 20)

Borrowings (Refer to note 21 and 21A)
Current maturity of long term loans (Refer to note 22)
Trade payables (Refer to note 25)
Other payables (Refer to note 22 and 24)
Less: cash and cash equivalents (Refer to note 17)

19,367.56
887.04
10,513.92
5,188.08
(2,234.64)
---------------------------------------------------------
33,721.96
33,721.96
33,721.96
33,721.96
33,721.96
---------------------------------------------------------
2,166.39
29,452.08
---------------------------------------------------------
31,618.48
31,618.48
31,618.48
31,618.48
31,618.48
---------------------------------------------------------
65,340.44
65,340.44
65,340.44
65,340.44
65,340.44
---------------------------------------------------------
51.61%
51.61%
51.61%
51.61%
51.61%
---------------------------------------------------------
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2020 and
March 31, 2019.
In order to achieve overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

20,635.24
1,581.10
9,131.41
5,226.45
(2,059.77)
---------------------------------------------------------
34,514.43
34,514.43
34,514.43
34,514.43
34,514.43
---------------------------------------------------------
2,166.39
28,421.53
---------------------------------------------------------
30,587.92
30,587.92
30,587.92
30,587.92
30,587.92
---------------------------------------------------------
65,102.35
65,102.35
65,102.35
65,102.35
65,102.35
---------------------------------------------------------
53.02%
53.02%
53.02%
53.02%
53.02%
---------------------------------------------------------

A+B=C)
A+B=C)
nd net debt (
nd net debt (
CCCCCaaaaapppppitititititaaaaal al al al al and net debt (
A+B=C)
nd net debt (A+B=C)
A+B=C)
nd net debt (

io (A/C)A/C)A/C)A/C)A/C)
io (
io (
GGGGGeaeaeaeaearrrrriiiiinnnnng rg rg rg rg raaaaatttttio (
io (

l (B)
l (B)
TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaapppppitititititaaaaal (B)
l (B)
l (B)

E 41 : DERRRRRIIIIIVVVVVAAAAATTTTTIIIIIVVVVVE IE IE IE IE INSNSNSNSNSTTTTTRRRRRUUUUUMMMMMEEEEENNNNNTS ATS ATS ATS ATS ANNNNND UD UD UD UD UNNNNNHHHHHEEEEEDDDDDGGGGGEEEEED FD FD FD FD FOOOOORRRRREEEEEIIIIIGGGGGN CUN CUN CUN CUN CURRRRRRRRRREEEEENNNNNCCCCCY EY EY EY EY EXXXXXPPPPPOOOOOSSSSSUUUUURRRRREEEEE
E 41 : DE
NONONONONOTTTTTE 41 : DE
E 41 : DE
E 41 : DE

I)I)I)I)I) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg

s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss
s hes he
es not designnnnnaaaaattttteeeeed ad ad ad ad as he
es not desig
DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives not desig
es not desig
es not desig

The Company uses forward currency contracts to hedge its foreign currency risks. Derivative contracts not designated by
management  as  hedging  instruments  are  initially  recognized  at  fair  value  on  the  date  on  which  a  derivative  contract  is
entered into and are subsequently re-measured at fair value on each reporting date. Such contracts are entered into for
periods consistent with exposure of the underlying transactions.

DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivives desig
es desig
es desig
es designnnnnaaaaattttteeeeed ad ad ad ad as he
s hes hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnntttttsssss
s hes he
es desig

The Company enters into hedging instruments in accordance with policies as approved by the Board of Directors with
written principles which is consistent with the risk management strategy of the Company. The Company has decided to
apply hedge accounting for certain derivative contracts that meets the qualifying criteria of hedging relationship entered
post April 01, 2019. Hedging strategies are decided and monitored periodically by the Risk Management Committee of the
Board.

218

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddgggggeseseseses

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of forecasted hedged items
in US dollar. These forecast transactions are highly probable. The foreign exchange forward contract balances vary with the
level of expected foreign currency sales and changes in foreign exchange forward rates.

s is as fos fos fos fos follllllololololowswswswsws:::::
s is a
ue of derrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts is a
s is a
ue of de
TTTTThe fhe fhe fhe fhe faaaaaiiiiir vr vr vr vr vaaaaalllllue of de
ue of de
s is a
ue of de

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Fair value of foreign currency forward exchange
contract designated as hedging instruments

LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

AsAsAsAsAssetsetsetsetsetsssss
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

991.80

-----

The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale
transactions. As a result, no hedge effectiveness arises requiring recognition through profit or loss.

The cash flow hedges of the forecasted sale transactions for the year ended March 31, 2020 were assessed to be highly
effective and unrealised loss of ` 991.80 lakh, with a deferred tax assets of ` 346.57 lakh relating to the hedging instruments,
is included in OCI.

The following table includes the maturity profile of the foreign exchange forward contracts:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As at March 31, 2020 (INR)
Foreign exchange forward
contracts (highly probable
forecast sales) USD
Notional amount (in USD)
Average forward rate(USD/INR)

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
1 monnnnnttttthhhhh
1 mo
1 mo
1 mo
1 mo
3,118.99
70.00

1 t1 t1 t1 t1 to 3o 3o 3o 3o 3
momomomomonnnnnttttthhhhhsssss
5,617.99
120.00

3 t3 t3 t3 t3 to 6o 6o 6o 6o 6
momomomomonnnnnttttthhhhhsssss
6,316.02
180.00

6 t6 t6 t6 t6 to 9o 9o 9o 9o 9
momomomomonnnnnttttthhhhhsssss
4,313.64
190.00

9 t9 t9 t9 t9 to 12o 12o 12o 12o 12
momomomomonnnnnttttthhhhhsssss
4,625.57
240.00

TTTTTotototototaaaaalllll

23,992.21
800.00

43.00
72.53

77.00
72.96

85.92
73.51

58.00
74.37

61.00
75.83

324.92
73.84

The impact of the hedging instruments on the balance sheet is as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Foreign currency risk forward
contract- As at March 31, 2020

(((((UUUUUSSSSSD)D)D)D)D)

(I(I(I(I(INNNNNR iR iR iR iR in ln ln ln ln laaaaakkkkkhhhhh)))))

NNNNNotototototioioioioionnnnnaaaaal al al al al amoumoumoumoumounnnnnttttt CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt LLLLLiiiiine itne itne itne itne iteeeeem im im im im in Bn Bn Bn Bn BSSSSSTTTTT CCCCChhhhhaaaaannnnnggggges ies ies ies ies in Fn Fn Fn Fn Faaaaaiiiiirrrrr
vvvvvaaaaalllllue uue uue uue uue usesesesesed fod fod fod fod forrrrr
meameameameameasssssuuuuurrrrriiiiinnnnnggggg
neffectctctctctiviviviviveeeeenesnesnesnesnessssss
neffe
iiiiineffe
neffe
neffe
he yearrrrr
he yea
he yea
fofofofofor tr tr tr tr the yea
he yea
(991.80)

 w w w w wheheheheherrrrre He He He He Heeeeedddddgggggeeeee
iiiiinnnnnssssstttttrrrrruuuuumememememennnnnt ist ist ist ist is
iscloseddddd
isclose
dddddisclose
isclose
isclose

(991.80)

324.92

Other financial
Liabilities

The impact of hedged items on the statement of financial position is, as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Highly probable forecast sales

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

CCCCChhhhhaaaaannnnnggggge ie ie ie ie in fn fn fn fn faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
uuuuusesesesesed fod fod fod fod for mea
r mea
r mea
r measssssuuuuurrrrriiiiinnnnnggggg
r mea
iiiiineffe
neffe
neffe
neffectctctctctiviviviviveeeeenesnesnesnesnessssss
neffe
-

CCCCCaaaaash flo
sh flo
sh flo
sh flowwwww
sh flo
HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee

-

Pearl Global Industries Limited     Annual Report 2019-20

219

Notes
to standalone financial statements for the year ended March 31, 2020

The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows:

ofit and Lnd Lnd Lnd Lnd Losososososs)s)s)s)s)
ofit a
t of Prrrrrofit a
ofit a
t of P
s of hedddddggggge ace ace ace ace accccccououououounnnnntttttiiiiinnnnng og og og og on Fn Fn Fn Fn Fiiiiinnnnnaaaaancianciancianciancial Pl Pl Pl Pl Positositositositositioioioioion (Sn (Sn (Sn (Sn (Stttttaaaaattttteeeeemememememennnnnt of P
t of P
s of he
e of effectctctctcts of he
s of he
e of effe
Disclosuuuuurrrrre of effe
e of effe
Disclos
Disclos
ofit a
t of P
s of he
e of effe
Disclos
Disclos

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As at March 31, 2020
Highly probable forecast sales

act of hedddddgggggiiiiinnnnng og og og og on en en en en eqqqqquuuuuititititityyyyy
act of he
act of he
IIIIImmmmmpppppact of he
act of he

l hedddddgggggiiiiinnnnnggggg
l hel he
l he
TTTTTotototototaaaaal he
gggggaaaaaiiiiin/(n/(n/(n/(n/(loslosloslosloss)s)s)s)s)
rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn
OOOOOCCCCCIIIII

neffectctctctctiviviviviveeeeenesnesnesnesnessssss LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn
IIIIIneffe
neffe
neffe
neffe
rrrrreeeeecccccooooogggggnnnnniseiseiseiseised id id id id innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of
t of
t of
t of
t of
r lossssss
r los
r los
ofit o
ppppprrrrrofit o
ofit o
ofit or los
r los
ofit o

AAAAAmoumoumoumoumounnnnnttttt
LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn
SSSSStttttaaaaattttteeeeemememememennnnnt of
sifieddddd
sifie
sifie
rrrrreeeeeclclclclclaaaaassssssifie
t of
t of
t of
sifie
t of
nd lossssss
nd los
nd los
ofit a
ofit a
ofit andndndndnd frfrfrfrfrooooom Om Om Om Om OCCCCCI tI tI tI tI tooooo ppppprrrrrofit a
ofit a
ppppprrrrrofit a
ofit a
ofit and los
nd los
ofit a
ofit a
r lossssss
r los
r los
ofit o
losloslosloslossssss ppppprrrrrofit o
ofit o
ofit or los
r los
ofit o

(38.42)

-

-

(38.42) Revenue from
Operations

Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

As at March 31, 2020
Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts
Amount reclassified to profit & loss
Tax effect

CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololowwwww
HHHHHeeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee
(991.80)
(38.42)
38.42
346.57

VVVVVaaaaallllluuuuuaaaaatttttioioioioion Tn Tn Tn Tn Teeeeechchchchchnnnnniqiqiqiqiqueueueueue

The Company enters into derivative financial instruments which are valued using valuation techniques which employs the
use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using
present value calculations. Where quoted market prices are not available, fair values are based on Management best estimates,
which are arrived at by the reference to market prices.

rs of Unnnnnhehehehehedddddgggggeeeeed fod fod fod fod forrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy exy exy exy exy exppppposososososuuuuurrrrreseseseses:::::
rs of U
rs of U
IIIIII)I)I)I)I) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of U
rs of U

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

ch 31, 2019
ch 31, 2019
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

Foreign currency receivable
Foreign currency payable
Foreign currency loan receivable

FFFFFooooorrrrreigeigeigeigeignnnnn
CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy

$7,711,568
$2,730,970
$846,699

DDDDDooooocucucucucumememememennnnnttttt
CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy
(((((AAAAAmoumoumoumoumounnnnnttttt
````` i i i i in ln ln ln ln laaaaakkkkkhhhhh)))))
5,813.75
2,058.88
638.32

FFFFFooooorrrrreigeigeigeigeignnnnn
CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy

-
$6,875,405
$803,799

DDDDDooooocucucucucumememememennnnnttttt
CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy
(((((AAAAAmoumoumoumoumounnnnnttttt
````` i i i i in ln ln ln ln laaaaakkkkkhhhhh)))))
-
4,755.72
555.99

IIIIIIIIIII)I)I)I)I) In respect of the derivative contracts entered into by the Company, the Management asessess no material foreseeable losses

as at the reporting date.

NONONONONOTTTTTE 42 : FA
E 42 : FA
E 42 : FA
E 42 : FAIIIIIR VR VR VR VR VAAAAALLLLLUUUUUEEEEESSSSS
E 42 : FA

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than
those with carrying amounts that are reasonable approximations of fair values:

220

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

a)

ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss:::::
ue of fi
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi
ue of fi
ue of fi

(Amount in ` Lakh, unless otherwise stated)

CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues
As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

141.00
692.68
-
833.68
833.68
833.68
833.68
833.68

FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
r lossssss
r los
r los
ofit o
s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o
ofit o
s mea
s mea
ofit or los
r los
ofit o
s mea
Investment in equity instruments
Investment in mutual fund
Mark to Market Forward Contracts
(((((AAAAA)))))
s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
s mea
s mea
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s mea
Investment in equity & preference instruments
Investment in Government Securities
Security deposits
Interest accrued on fixed deposits
Deposits with original maturity of more than 12 months
Loans to related parties
Loans to others parties
Interest accrued on loan to related parties
Other receivables
Trade receivable
Cash and cash equivalents
Other bank balances
(B)(B)
(B)(B)
(B)
A+B)A+B)
A+B)A+B)
TTTTTotototototaaaaal (l (l (l (l (A+B)

11,728.05
1.63
800.77
30.05
45.54
797.57
33.40
147.47
-
9,740.45
2,059.77
931.61
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
27,149.99
27,149.99
27,149.99
27,149.99
27,149.99

133.50
-
462.80
596.30
596.30
596.30
596.30
596.30

11,726.14
1.63
800.52
45.64
761.27
756.52
67.73
106.07
234.35
11,134.77
2,234.64
1,454.01
29,323.29
29,323.29
29,323.29
29,323.29
29,323.29
29,919.59
29,919.59
29,919.59
29,919.59
29,919.59

141.00
692.68
-
833.68
833.68
833.68
833.68
833.68

11,728.05
1.63
800.77
30.05
45.54
797.57
33.40
147.47
-
9,740.45
2,059.77
931.61
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
27,149.99
27,149.99
27,149.99
27,149.99
27,149.99

133.50
-
462.80
596.30
596.30
596.30
596.30
596.30

11,726.14
1.63
800.52
45.64
761.27
756.52
67.73
106.07
234.35
11,134.77
2,234.64
1,454.01
29,323.29
29,323.29
29,323.29
29,323.29
29,323.29
29,919.59
29,919.59
29,919.59
29,919.59
29,919.59

b)

ue of finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies:::::
ue of fi
ue of fi
FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi
ue of fi

(Amount in ` Lakh, unless otherwise stated)

FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
ies mea
ies mea
ies mea
r Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooomememememe
r Cor Co
r Co
ttttthhhhhrrrrrououououougggggh Oh Oh Oh Oh Otttttheheheheher Co
Derivative Financial Instruments
(((((AAAAA)))))
FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
ies mea
ies mea
ies mea
Borrowings
Lease Liabilities
Security Deposit
Book Overdraft
Unpaid Dividend
Trade payables
Interest accrued but not due on borrowings
Creditors for capital expenditure
Others
(B)(B)
(B)(B)
(B)
A+B)A+B)
TTTTTotototototaaaaal (l (l (l (l (A+B)
A+B)A+B)

CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaallllluesuesuesuesues

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues
As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

991.80
991.80
991.80
991.80
991.80
991.80

22,216.34
3,049.77
246.97
26.87
31.85
9,131.41
37.48
30.21
48.19
34,819.09
34,819.09
34,819.09
34,819.09
34,819.09
35,810.89
35,810.89
35,810.89
35,810.89
35,810.89

-
-----

991.80
991.80
991.80
991.80
991.80
991.80

-
-----

20,254.60
-
222.00
150.48
26.83
10,513.92
24.67
849.25
-
32,041.75
32,041.75
32,041.75
32,041.75
32,041.75
32,041.75
32,041.75
32,041.75
32,041.75
32,041.75

22,225.25
3,049.77
246.97
26.87
31.85
9,131.41
37.48
30.21
48.19
34,828.00
34,828.00
34,828.00
34,828.00
34,828.00
35,819.80
35,819.80
35,819.80
35,819.80
35,819.80

20,266.02
-
222.00
150.48
26.83
10,513.92
24.67
849.25
-
32,053.17
32,053.17
32,053.17
32,053.17
32,053.17
32,053.17
32,053.17
32,053.17
32,053.17
32,053.17

Pearl Global Industries Limited     Annual Report 2019-20

221

Notes
to standalone financial statements for the year ended March 31, 2020

Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest
accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to
the short-term maturities of these instruments.

Long-term borrowing includes vehicle loan and corporate loans obtained from banks and Financial institutions. Management
determines vehicle loan and corporate loan to be at the market rate of interest as at the reporting date, accordingly, the
carrying value of such long-term borrowing approximates fair value.

n deteeeeerrrrrmmmmmiiiiinnnnniiiiinnnnng fg fg fg fg faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
n det
ccccc))))) DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttte ue ue ue ue usesesesesed id id id id in det
n det
n det

The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing
rate of borrower which in case of financial liabilities is average market cost of borrowings of the Company and in case of
financial asset is the average market rate of similar credit rated instrument. The company maintains policies and procedures
to value financial assets or financial liabilities using the best and most relevant data available.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.

d) The following methods and assumptions were used to estimate the fair values:

i)

Fair values of the Company’s interest-bearing borrowings, loans and investment in preference shares in subsidiary are
determined by using DCF method using discount rate that reflects the rate as at the end of the reporting period.

ii) Fair value for security deposits paid & received (other than perpetual security deposits) has been presented based on

the discounting factor as at the reporting date.

iii) Fair value for all other non-current assets and liabilities is equivalent to the amortised cost, interest rate on them is

equivalent to the market rate of interest.

iv) For other financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

v)

Specific valuation techniques used to value financial instruments include:

-

-

-

The fair values of investments In mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers
of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which
the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the
investors.

Investment in quoted equity instruments of entities other than subsidiaries has been determined on the basis of
quoted rates available from securities markets in India.

The fair value of derivative financial instruments (forward exchange contract) has been determined on the basis of
mark to market valuation.

E 43 : FAIIIIIR HR HR HR HR HIIIIIEEEEERRRRRAAAAARRRRRCCCCCHHHHHYYYYY
E 43 : FA
NONONONONOTTTTTE 43 : FA
E 43 : FA
E 43 : FA

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are
observable, either directly or indirectly.

Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not
based on observable market data.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities

222

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020:
ch 31, 2020:
ch 31, 2020:
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
ue mea
isclos
a) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
isclos
ch 31, 2020:
ch 31, 2020:
ue mea
isclos

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

AsAsAsAsAssetsetsetsetsets mea
r lossssss
r los
r los
ofit o
s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o
ofit o
s mea
s mea
ofit or los
r los
ofit o
s mea
Investment in equity instruments
Investment in mutual fund
TTTTTotototototaaaaal Al Al Al Al A
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
s mea
s mea
s mea
Investment in equity & preference instruments
Investment in Government Securities
Security deposits
Interest accrued on fixed deposits
Deposits with original maturity of more than 12 months
Loans to related parties
Loans to others parties
Interest accrued on loan to related parties
Trade receivable*
Cash and cash equivalents*
Other bank balances*
TTTTTotototototaaaaal Al Al Al Al A
TTTTTotototototaaaaal (l (l (l (l (A+B)
A+B)
A+B)
A+B)
A+B)

141.00
692.68
833.68
833.68
833.68
833.68
833.68

11,728.05
1.63
800.77
30.05
45.54
797.57
33.40
147.47
9,740.45
2,059.77
931.61
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
27,150.00
27,150.00
27,150.00
27,150.00
27,150.00

-
-
-----

11,728.05
1.63
800.77
30.05
45.54
797.57
33.40
147.47
9,740.45
2,059.77
931.61
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

141.00
692.68
833.68
833.68
833.68
833.68
833.68

-
-
-
-
-
-
-
-
-
-
-
-----
833.68
833.68
833.68
833.68
833.68

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)
el 3)
el 3)

-
-
-----

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

-
-
-----

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

ch 31, 2020:
ch 31, 2020:
ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020:
ies a
ies a
ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a
ue mea
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
isclos
isclos
b) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
ch 31, 2020:
ch 31, 2020:
ies a
ue mea
isclos

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2020
2020
2020
2020
2020

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 2)
el 2)
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 3)
el 3)
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

TTTTTotototototaaaaalllll

141.00
692.68
833.68
833.68
833.68
833.68
833.68

11,728.05
1.63
800.77
30.05
45.54
797.57
33.40
147.47
9,740.45
2,059.77
931.61
26,316.31
26,316.31
26,316.31
26,316.31
26,316.31
27,150.00
27,150.00
27,150.00
27,150.00
27,150.00

TTTTTotototototaaaaalllll

ies measssssuuuuurrrrreeeeed ad ad ad ad at Ft Ft Ft Ft Faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
ies mea
ies mea
FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies mea
r Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooomememememe
r Co
r Co
ttttthhhhhrrrrrououououougggggh Oh Oh Oh Oh Otttttheheheheher Co
r Co
Derivative Financial Instruments
(((((AAAAA)))))
ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
ies mea
ies mea
FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies mea
Borrowings
Lease Liabilities
Security Deposit
Book Overdraft
Unpaid Dividend
Trade payables*
Interest accrued but not due on borrowings*
Creditors for capital expenditure*
Others
(B)
(B)
(B)
(B)
(B)
A+B)
A+B)
TTTTTotototototaaaaal (l (l (l (l (A+B)
A+B)
A+B)

991.80
991.80
991.80
991.80
991.80
991.80

22,216.34
3,049.77
246.97
26.87
31.85
9,131.41
37.48
30.21
48.19
34,819.09
34,819.09
34,819.09
34,819.09
34,819.09
35,810.88
35,810.88
35,810.88
35,810.88
35,810.88

-
-----

-
3,049.77
246.97
26.87
31.85
9,131.41
37.48
30.21
48.19
12,602.75
12,602.75
12,602.75
12,602.75
12,602.75
12,602.75
12,602.75
12,602.75
12,602.75
12,602.75

-
-----

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

991.80
991.80
991.80
991.80
991.80
991.80

-
-
-
-
-
-
-
-
-
-----
991.80
991.80
991.80
991.80
991.80

-
-----

991.80
991.80
991.80
991.80
991.80
991.80

22,225.25
-
-
-
-
-
-
-
-
22,225.25
22,225.25
22,225.25
22,225.25
22,225.25
22,225.25
22,225.25
22,225.25
22,225.25
22,225.25

22,225.25
3,049.77
246.97
26.87
31.85
9,131.41
37.48
30.21
48.19
34,828.00
34,828.00
34,828.00
34,828.00
34,828.00
35,819.79
35,819.79
35,819.79
35,819.79
35,819.79

Pearl Global Industries Limited     Annual Report 2019-20

223

Notes
to standalone financial statements for the year ended March 31, 2020

ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for ar ar ar ar assssssetsetsetsetsets as as as as as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019:
ch 31, 2019:
ch 31, 2019:
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
ue mea
isclos
c) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
isclos
ch 31, 2019:
ch 31, 2019:
ue mea
isclos

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)
el 3)
el 3)

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

s measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue
AsAsAsAsAssetsetsetsetsets mea
s mea
s mea
s mea
r lossssss
r los
r los
ofit o
ttttthhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit o
ofit o
ofit or los
r los
ofit o
Investment in equity instruments
Mark to Market Forward Contracts

TTTTTotototototaaaaal Al Al Al Al A
s measssssuuuuurrrrreeeeed ad ad ad ad at at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
s mea
FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets mea
s mea
s mea
Investment in equity & preference instruments
Investment in Government Securities
Security deposits
Interest accrued on fixed deposits
Deposits with original maturity
of more than 12 months
Loans to related parties
Loans to others parties
Interest accrued on loan to related parties
Other receivables
Trade receivable*
Cash and cash equivalents*
Other bank balances*

TTTTTotototototaaaaal Al Al Al Al A

TTTTTotototototaaaaal (l (l (l (l (A+B)
A+B)
A+B)
A+B)
A+B)

133.50
462.80

596.30
596.30
596.30
596.30
596.30

11,726.14
1.63
800.52
45.64
761.27

756.52
67.73
106.07
234.35
11,134.77
2,234.64
1,454.01

11,726.14
1.63
800.52
45.64
761.27

756.52
67.73
106.07
234.35
11,134.77
2,234.64
1,454.01

-
-

-----

133.50
-

133.50
133.50
133.50
133.50
133.50

-
462.80

462.80
462.80
462.80
462.80
462.80

-
-
-
-
-

-
-
-
-
-
-
-

-----

-
-
-
-
-

-
-
-
-
-
-
-

-----

29,323.29
29,323.29
29,323.29
29,323.29
29,323.29

29,323.29
29,323.29
29,323.29
29,323.29
29,323.29

29,919.59
29,919.59
29,919.59
29,919.59
29,919.59

29,323.29
29,323.29
29,323.29
29,323.29
29,323.29

133.50
133.50
133.50
133.50
133.50

462.80
462.80
462.80
462.80
462.80

ies as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019:
ch 31, 2019:
ch 31, 2019:
ies a
ue measssssuuuuurrrrreeeeemememememennnnnt ht ht ht ht hieieieieierrrrraaaaarrrrrchchchchchy foy foy foy foy for lr lr lr lr liabiabiabiabiabilililililititititities a
ies a
ue mea
isclosuuuuurrrrres fes fes fes fes faaaaaiiiiir vr vr vr vr vaaaaalllllue mea
ue mea
isclos
d) QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de disclos
isclos
ch 31, 2019:
ch 31, 2019:
ies a
ue mea
isclos

As AAs AAs AAs AAs Attttt
ch 31,
ch 31,
MMMMMaaaaarrrrrch 31,
ch 31,
ch 31,
2019
2019
2019
2019
2019

AAAAAm om om om om orrrrrtttttiseiseiseiseiseddddd
CosCosCosCosCosttttt

FFFFFaaaaaiiiiir Vr Vr Vr Vr Vaaaaalllllueueueueue

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
ooooobsebsebsebsebserrrrr vvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 2)
el 2)
(L(L(L(L(Leeeeevvvvvel 2)
el 2)
el 2)

SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt
uuuuunononononobsebsebsebsebserrrrrvvvvvababababablelelelele
iiiiinnnnnpupupupuputttttsssss
el 3)
el 3)
(L(L(L(L(Leeeeevvvvvel 3)
el 3)
el 3)

QQQQQuotuotuotuotuoteeeeeddddd
ppppprrrrricicicicices ies ies ies ies innnnn
actactactactactiviviviviveeeee
mmmmmaaaaarrrrrkkkkketetetetetsssss
el 1)
el 1)
(L(L(L(L(Leeeeevvvvvel 1)
el 1)
el 1)

ies measssssuuuuurrrrreeeeeddddd
ies mea
ies mea
FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea
ies mea
aaaaat at at at at am om om om om orrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt
Borrowings
Security Deposit
Book Overdraft
Unpaid Dividend
Trade payables*
Interest accrued but not due on borrowings*
Creditors for capital expenditure*

20,254.60
222.00
150.48
26.83
10,513.92
24.67
849.25

-
222.00
150.48
26.83
10,513.92
24.67
849.25

32,041.75
32,041.75
32,041.75
32,041.75
32,041.75

11,787.15
11,787.15
11,787.15
11,787.15
11,787.15

-
-
-
-
-
-
-

-----

-
-
-
-
-
-
-

-----

20,266.02
-
-
-
-
-
-

20,266.02
222.00
150.48
26.83
10,513.92
24.67
849.25

20,266.02
20,266.02
20,266.02
20,266.02
20,266.02

32,053.17
32,053.17
32,053.17
32,053.17
32,053.17

TTTTTotototototaaaaalllll

133.50
462.80

596.30
596.30
596.30
596.30
596.30

11,726.14
1.63
800.52
45.64
761.27

756.52
67.73
106.07
234.35
11,134.77
2,234.64
1,454.01

29,323.29
29,323.29
29,323.29
29,323.29
29,323.29

29,919.59
29,919.59
29,919.59
29,919.59
29,919.59

TTTTTotototototaaaaalllll

-
-

-----

-
-
-
-
-

-
-
-
-
-
-
-

-----

-----

224

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

* Management has assessed that trade receivables, cash and cash equivalents, other bank balances, trade payables, Interest
accrued on borrowings and current maturities of long term borrowings approximate their carrying amounts largely due to
the short-term maturities of these instruments.

There have been no transfers between Level 1 and Level 2 during the period.

Specific valuation techniques used to value financial instruments. (refer note 42)

E 44 : FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL RL RL RL RL RIIIIISSSSSK MK MK MK MK MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNT OT OT OT OT OBBBBBJJJJJECECECECECTTTTTIIIIIVVVVVEEEEES AS AS AS AS ANNNNND PD PD PD PD POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS
E 44 : FI
NONONONONOTTTTTE 44 : FI
E 44 : FI
E 44 : FI

The Company’s principal financial liabilities comprises of trade and other payables, borrowings, current maturity of borrowings,
interest accrued and capital creditors. The main purpose of these financial liabilities is to finance the Company’s operations and
to provide guarantees to support its operations.

The Company’s principal financial assets includes Investment in mutual funds, loans to related parties, security deposits, trade
receivables, cash and cash equivalents, deposits with bank, interest accrued in deposits, receivables from related and other parties
and interest accrued thereon.

The Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior level management oversees the
management of these risks and is supported by finance department that advises on the appropriate financial risk governance
framework.

AAAAA..... MMMMMaaaaarrrrrkkkkket ret ret ret ret riskiskiskiskisk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk. Financial instruments affected by market risk borrowings, short term deposits and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at March 31, 2020 and March 31, 2019.

iiiii)))))

IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte re re re re riskiskiskiskisk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily
to the Company’s long-term debt obligations with floating interest rates.

The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company
to interest rate risk. The Company manages its net exposure to interest rate risk related to borrowings, by balancing a
proportion of fixed rate and floating rate borrowing in its total borrowing portfolio.

IIIIInnnnnttttteeeeerrrrresesesesest rt rt rt rt raaaaattttte see see see see sennnnnsitsitsitsitsitivivivivivititititityyyyy

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the portion of
borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the
impact on floating rate borrowings, as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

March 31, 2020

March 31, 2019

r der decccccrrrrreaeaeaeaeasesesesese DDDDDeeeeecccccrrrrreaeaeaeaease/(
r der de
se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se)
se/(
se/(
IIIIIncncncncncrrrrreaeaeaeaease ose ose ose ose or de
se/(
ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx
ofit b
ofit b
iiiiin pn pn pn pn prrrrrofit b
iiiiin bn bn bn bn baaaaasis psis psis psis psis poooooiiiiinnnnntttttsssss
ofit b
+50
10.62
(10.62)
-50
10.84
+50
(10.84)
-50

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment, showing a significantly higher volatility than in prior years.

Pearl Global Industries Limited     Annual Report 2019-20

225

Notes
to standalone financial statements for the year ended March 31, 2020

iiiiiiiiii))))) FFFFFooooorrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy ry ry ry ry riskiskiskiskisk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes
in exchange rates. Foreign currency risk senstivity is the impact on the Company’s profit before tax is due to changes in
the fair value of monetary assets and liabilities on unhedged exposures. The following tables demonstrate the sensitivity
to a reasonably possible change in exchange rates, with all other variables held constant.

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

March 31, 2020

March 31, 2019

B.B.B.B.B. CCCCCrrrrreeeeedddddit rit rit rit rit riskiskiskiskisk

CCCCChhhhhaaaaannnnnggggges ies ies ies ies innnnn DDDDDeeeeecccccrrrrreaeaeaeaease/(
se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se)
se/(
se/(
se/(
ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx
ofit b
ofit b
 i i i i in pn pn pn pn prrrrrofit b
ofit b
(71.03)
71.03
209.99
(209.99)

exexexexexchchchchchaaaaannnnnggggge re re re re raaaaattttteeeee
+5%
-5%
+5%
-5%

Credit risk is the risk that counterparty will default on its contractual obligations resulting in finance loss to the Company.
Credit risk arise from Cash and cash equivalents, deposit with banks, trade receivables and other financial assets measure at
amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporate this
information into its credit risk control.

The Company also uses expected credit loss model to assess the impairement loss in Trade Receivables and makes an allowance
of doubtful trade receivables using this model.

1) The ageing anaysis of trade receivables as of the reporting date is as follows:

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Trade Receivables as
of March 31, 2020
Trade Receivables as
of March 31, 2019

NNNNNeiteiteiteiteitheheheheher pr pr pr pr paaaaasssssttttt
ue norrrrr
ue no
ue no
dddddue no
ue no
iiiiimmmmmpppppaaaaaiiiiirrrrreeeeeddddd
5,787.82

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
30 d30 d30 d30 d30 daaaaaysysysysys

30 t30 t30 t30 t30 to 90o 90o 90o 90o 90
dddddaaaaaysysysysys

o 180 MMMMMooooorrrrre te te te te thhhhhaaaaannnnn
o 180
o 180
90 t90 t90 t90 t90 to 180
o 180
180 daaaaaysysysysys
180 d
180 d
dddddaaaaaysysysysys
180 d
180 d

TTTTTotototototaaaaalllll

1,705.85

748.31

249.66

1,248.81

9,740.45

3,712.62

3,250.65

2,324.81

423.30

1,423.39

11,134.77

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in
several jurisdictions and operate in largely independent markets.

2) Exposure to Risk, in respect of the guarantees given by the Company: The disclosure in respect of credit risk exposures
which are not credit imparied or where there has not been a significant increase in credit risk since initial recognition
are as under:

ofileofile
----- QQQQQuuuuuaaaaannnnntttttitititititaaaaatttttivivivivive de de de de daaaaattttta aba aba aba aba abououououout ext ext ext ext exppppposososososuuuuurrrrre ae ae ae ae and mnd mnd mnd mnd maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile
ofileofile

e Giveeeeen tn tn tn tn tooooo
e Giv
GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeee Giv
e Giv
e Giv

Standard Chartered Bank,
Hongkong Branch

DDDDDetetetetetaaaaails of
ils of
ils of
ils of
ils of
ubsidiaiaiaiaiarrrrryyyyy
SSSSSubsid
ubsid
ubsid
ubsid
Pearl Global
(HK) Limited

PPPPPuuuuurprprprprpose of
ose of
ose of
ose of
ose of
GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee
Securing Credit
Facilities

AAAAAmoumoumoumoumounnnnnt at at at at as as as as as attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
USD 120.00 lakh
equivalent to
` 9,046.80 lakh

GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee
VVVVVaaaaalllllid Uid Uid Uid Uid Uptptptptptooooo
February 05,
2021

HSBC Bank, Hongkong Branch

Pearl Global
(HK) Limited

Standard Chartered Bank,
Bangladesh Branch

Norp Knit
Industries Limited

Securing Credit
Facilities

USD 200.00 lakh November 10,
2021

equivalent to
` 15,078.00 lakh
Securing Credit BDT 9,000.00 lakh
equivalent to
` 7,967.43 lakh

Facilities

October 11,
2021

226

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

-

PPPPPooooolllllicicicicicy of my of my of my of my of maaaaannnnnaaaaagggggiiiiinnnnng  rg  rg  rg  rg  riskiskiskiskisk::::: The Company considers the probability of default upon initial recognition and whether
there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess
whether there is a significant increase in credit risk the Company compares the risk of default as at the reporting date
with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward-
looking  information  such  as  significant  changes  in  the  value  of  guarantee  or  in  the  quality  of  exposure  or  credit
enhancements.

sh depppppositositositositositsssss
sh de
3)3)3)3)3) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts as as as as and cnd cnd cnd cnd caaaaash de
sh de
sh de

Credit risk from balances with banks, investment in mutual funds and loan to related parties is managed by the Company’s
treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved
counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the
Company’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the
Company’s finance committee.

C.C.C.C.C. LLLLLiqiqiqiqiquuuuuidididididititititity ry ry ry ry riskiskiskiskisk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.

The  Company’s  objective  is  to,  maintain  optimum  levels  of  liquidity  to  meet  its  cash  and  collateral  requirements.  The
Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources
of financing including loans from banks at an optimised cost.

ies  baaaaasesesesesed  od  od  od  od  on  cn  cn  cn  cn  cooooonnnnntttttrrrrractactactactactuuuuuaaaaalllll
ies  b
ies  b
s  finnnnnaaaaancianciancianciancial  ll  ll  ll  ll  liabiabiabiabiabilililililititititities  b
s  fi
s  fi
he  Commmmmpppppaaaaannnnnyyyyy’’’’’s  fi
he  Co
he  Co
ofile  of  t
ofile  of  t
ises  the  mhe  mhe  mhe  mhe  maaaaatttttuuuuurrrrrititititity  py  py  py  py  prrrrrofile  of  t
ises  t
ises  t
TTTTThe  the  the  the  the  tababababable  ble  ble  ble  ble  beloeloeloeloelow  sw  sw  sw  sw  suuuuummmmmmmmmmaaaaarrrrrises  t
ofile  of  the  Co
ies  b
s  fi
he  Co
ofile  of  t
ises  t
uuuuundndndndndiscisciscisciscououououounnnnnttttteeeeed pd pd pd pd paaaaayyyyymememememennnnntttttsssss.....

ch 31, 2020
ch 31, 2020
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

Borrowings
Lease Liabilities
Current maturities of long-term borrowings
Trade payables
Other financial liabilities
TTTTTotototototaaaaalllll

As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

Borrowings
Current maturities of long-term borrowings
Trade payables
Other financial liabilities
TTTTTotototototaaaaalllll

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
3 monnnnnttttthhhhhsssss
3 mo
3 mo
3 mo
3 mo
15,283.48
56.90
349.69
9,131.41
1,375.88
26,197.36
26,197.36
26,197.36
26,197.36
26,197.36

LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn
3 monnnnnttttthhhhhsssss
3 mo
3 mo
3 mo
3 mo
16,182.41
230.90
10,513.92
1,051.23
27,978.46
27,978.46
27,978.46
27,978.46
27,978.46

3 t3 t3 t3 t3 to 12o 12o 12o 12o 12
momomomomonnnnnttttthhhhhsssss
97.39
179.46
1,231.41
-
-
1,508.25
1,508.25
1,508.25
1,508.25
1,508.25

3 t3 t3 t3 t3 to 12o 12o 12o 12o 12
momomomomonnnnnttttthhhhhsssss
-----
656.14
-
-
656.14
656.14
656.14
656.14
656.14

1 t1 t1 t1 t1 to 5o 5o 5o 5o 5
yeayeayeayeayearsrsrsrsrs
4,708.37
1,208.45
-
-
37.48
5,954.30
5,954.30
5,954.30
5,954.30
5,954.30

1 t1 t1 t1 t1 to 5o 5o 5o 5o 5
yeayeayeayeayearsrsrsrsrs
3,185.15
-
-
154.93
3,340.08
3,340.08
3,340.08
3,340.08
3,340.08

> 5 yearsrsrsrsrs
> 5 yea
> 5 yea
> 5 yea
> 5 yea

TTTTTotototototaaaaalllll

546.00
1,604.97
-
-
-
2,150.97
2,150.97
2,150.97
2,150.97
2,150.97

20,635.24
3,049.78
1,581.10
9,131.41
1,413.36
35,810.89
35,810.89
35,810.89
35,810.89
35,810.89

> 5 yearsrsrsrsrs
> 5 yea
> 5 yea
> 5 yea
> 5 yea

TTTTTotototototaaaaalllll

-----
-
-
67.07
67.07
67.07
67.07
67.07
67.07

19,367.56
887.04
10,513.92
1,273.23
32,041.75
32,041.75
32,041.75
32,041.75
32,041.75

NONONONONOTTTTTE 45 : SEG
E 45 : SEG
E 45 : SEG
E 45 : SEGMMMMMEEEEENNNNNT INT INT INT INT INFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN
E 45 : SEG

a) The Company’s operating segments are established on the basis of those components that are evaluated regularly by the
Executive Committee (the ‘Chief Operating Decision Maker’ as defined in Ind AS 108 - ‘Operating Segments’). In light of
Para 4 of Ind AS 108- Operating Segments, the Company has presented segment information on geographical basis in its
consolidated financial statements.

b) Revenue from major customer: During the year, the Company generates 90% of its external revenues from eight (8) customers.

Pearl Global Industries Limited     Annual Report 2019-20

227

Notes
to standalone financial statements for the year ended March 31, 2020

E 46 : CONNNNNTTTTTIIIIINNNNNGGGGGEEEEENNNNNT LT LT LT LT LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND CD CD CD CD COOOOOMMMMMMMMMMIIIIITTTTTMMMMMEEEEENNNNNTSTSTSTSTS
E 46 : CO
NONONONONOTTTTTE 46 : CO
E 46 : CO
E 46 : CO

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he ex
ies (TTTTTo to to to to the ex
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ies (
a)a)a)a)a) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities (
ies (
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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
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ch 31, 2020

As AAs AAs AAs AAs Attttt
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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
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E 47 : RE

t of relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies
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ic (Di
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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)
s (Di
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Pearl Global Fareast Limited
Pearl Global (HK) Limited
Norp Knit Industries Limited

rseas (Is (Is (Is (Is (Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct)
rsea
rsea
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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

EEEEEnnnnnttttteeeeerprprprprprrrrrise ov
ise ov
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DDDDDooooomesmesmesmesmesttttticicicicic
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MMMMMaaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel
Creative Arts Education Society
exexexexexeeeeerrrrrcise Sig
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Nim International Commerce LLP
PDS Multinational Fashions Limited

Pearl Global Industries Limited     Annual Report 2019-20

229

Notes
to standalone financial statements for the year ended March 31, 2020

Pearl Wears
PS Arts Private Limited
PSS Estates LLP
Vau Apparels LLP

OOOOOvvvvveeeeersea
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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

KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Mr. Deepak Seth
P) & theiheiheiheiheir rr rr rr rr relelelelelaaaaatttttiviviviviveeeee
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(K(K(K(K(KMMMMMP) & t
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Chariman
Mr. Pulkit Seth
Vice Chairman & Managing Director
Mrs. Shifalli Seth
Whole-Time Director
Whole-Time Director
Mr. Vinod Vaish (till 30.04.2020)
Mr.Kashmir Singh Rathour (from 28.07.2020) Chief Financial Officer
Chief Financial Officer
Mr. Raghav Garg (till 30.06.2020)
Company Secretary
Mr. Sandeep Sabharwal
Independent Director
Mr. Chittranjan Dua
Independent Director
Mr. Rajendra Kumar Aneja
Independent Director
Mr. Anil Nayar
Independent Director
Mr. Abhishek Goyal
Mrs. Madhulika Bhupatkar (from 18-03-2020) Independent Director

sactioioioioionnnnnsssss:::::
sact
sact
e of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttties Ties Ties Ties Ties Trrrrraaaaannnnnsact
e of R
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y Coy Commmmmpppppaaaaannnnniesiesiesiesies
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ubsidiaiaiaiaiarrrrry Co
ubsid
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PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Purchase of goods
Sale of goods - raw material
Sale of goods – readymade garments
Source support income
Income on corporate guarantee
Expenses paid on behalf of the Company
Expenses paid by the Company on other’s behalf
SAP income
Investment in equity shares
Interest income
Impairment of investment in subsidiaries

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
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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
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he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

11,879.70
644.47
10,504.32
1,019.36
138.40
52.39
47.90
98.11
1.00
30.11
27.24

14,606.50
249.19
4,199.04
-
161.31
1,273.99
1,298.37
92.02
-
29.68
1,438.36

Corporate Guarantee given by the Company (as per Section 186(4) of the Companies Act 2013)

•••••

To  Standard  Chartered  Bank,  Hongkong  Branch  for  securing  credit  facilities  to  its  wholly  owned  subsidiary

232

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

•••••

•••••

Pearl Global (HK) Limited, Hong Kong for USD 120.00 lakh equivalent to ` 9,046.80 lakh (March 31, 2019
USD 120.00 lakh equivalent to ` 7,800.04 lakh)

To HSBC Bank, Hongkong Branch for securing credit facilities to its wholly owned subsidiary Pearl Global (HK)
Limited, Hong Kong for USD 200.00 lakh equivalent to `15,078.00 lakh (March 31, 2019: Nil)

To Standard Chartered Bank, Bangladesh Branch for securing credit facilities to its subsidiary Norp Knit Industries
Limited, Bangladesh for BDT 9,000.00 lakh equivalent to ` 7,967.43 lakh (March 31, 2019 : BDT 9,000 lakh
equivalent to ` 7,389.08 lakh).

Above Corporate Guarantees have been given for business purpose.

losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee
losi
losi
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PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Loan given to subsidiary (inclusive of interest)
Trade Receivable
Trade Payable
Advance Receivable

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

638.33
2,125.58
1,037.89
92.93

555.94
2,669.24
2,719.16
95.64

s Signnnnnificificificificificaaaaannnnnt It It It It Innnnnflflflflflueueueueuencncncncnceeeee
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(ii) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov
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(Amount in ` Lakh, unless otherwise stated)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Expenses paid by the company on their behalf
Expenses paid by them on behalf of the Company
Interest income

losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee
losi
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losi

Amount receivable
Loan receivable (including interest)

(iii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnel (Knel (Knel (Knel (Knel (KMMMMMP)P)P)P)P)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Remuneration paid
EPF paid
Expenses incurred on behalf of the Company
Directors sitting fees

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Trade Payable - Payable to KMP

he year er er er er endendendendendeddddd
he yea
he yea
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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

-
3.00
30.00

0.61
4.37
30.00

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

-
306.71

4.29
306.66

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

301.51
1.06
30.09
1.60

277.89
1.11
42.31
1.50

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

As AAs AAs AAs AAs Attttt
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019
ch 31, 2019

0.92

16.85

Pearl Global Industries Limited     Annual Report 2019-20

233

Notes
to standalone financial statements for the year ended March 31, 2020

C. Disclosure of Material Transactions: Related Parties having more than 10% interest in each transaction in the ordinary

course of business

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Norp Knit Industries Limited
Pearl Global Vietnam Co Ltd

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Norp Knit Industries Limited
Pearl Global Vietnam Co Ltd
Pearl Apparel Fashions Limited

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Pearl Global Far East Limited
Pearl Global (HK) Limited
DSSP Global Limited

SSSSSououououourrrrrccccce se se se se suuuuuppppppppppooooorrrrrt it it it it incncncncncooooomememememe
Pearl Global (HK) Limited

IIIIIncncncncncooooome ome ome ome ome on cn cn cn cn cooooorprprprprpooooorrrrraaaaattttte ge ge ge ge guuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee
Norp Knit Industries Limited
Pearl Global (HK) Limited

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Norp Knit Industries Limited
Pearl Global (HK) Limited

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Norp Knit Industries Limited
Pearl Global (HK) Limited
Pearl Grass Creations Ltd

IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in en en en en eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses
SBUYS E-Commerce Limited

SSSSSAAAAAP iP iP iP iP incncncncncooooomememememe
Pearl Global Far East Limited
Pearl Global (HK) Limited
Pearl Grass Creations Ltd
Vin Pearl Global Vietnam Limited

IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe
Pearl Global Far East Limited

IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of i
t of i
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t of innnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid
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Pearl Apparel Fashions Limited

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

10,156.16
1,569.98

430.75
213.71
-

-
10,108.19
395.28

1,019.36

49.02
89.38

14.22
37.84

15.84
0.14
29.06

1.00

36.33
50.81
10.98
-

30.11

27.24

14,023.75
-

202.16
-
47.03

608.67
2,328.32
1,262.05

-

76.18
85.13

820.44
453.55

27.35
1,184.86
52.08

-

33.10
48.58
1.77
8.57

29.68

1,438.36

234

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

s signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee
s sig
ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich KMMMMMP hP hP hP hP haaaaas sig
s sig
ise ov
(ii) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov
ise ov
s sig
ise ov

(Amount in ` Lakh, unless otherwise stated)

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

ExExExExExpppppeeeeennnnnses p
ses paaaaaid bid bid bid bid by ty ty ty ty the che che che che cooooommmmmpppppaaaaannnnny oy oy oy oy on tn tn tn tn theiheiheiheiheir br br br br behehehehehaaaaalllllfffff
ses p
ses p
ses p
Norwest Industries Limited

ExExExExExpppppeeeeennnnnses p
he Commmmmpppppaaaaannnnnyyyyy
he Co
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f of t
ses paaaaaid oid oid oid oid on bn bn bn bn behehehehehaaaaalllllf of t
f of t
ses p
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f of the Co
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f of t
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PDS Multinational Fashion Limited

IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe
PDS Multinational Fashion Limited

(iii) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2020
ch 31, 2020
MMMMMaaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

he year er er er er endendendendendeddddd
he yea
FFFFFooooor tr tr tr tr the yea
he yea
he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

-

3.00

30.00

0.61

4.37

30.00

(Amount in ` Lakh, unless otherwise stated)

he year er er er er endendendendendeddddd
he yea
he yea
FFFFFooooor tr tr tr tr the yea
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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

RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion pn pn pn pn paaaaaididididid
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Rajkumar Chawla
Mr. Vinod Vaish
Mr. Sandeep Sabharwal
Mr. Raghav Garg

EEEEEPPPPPF pF pF pF pF paaaaaididididid
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Rajkumar Chawla
Mr. Vinod Vaish
Mr. Sandeep Sabharwal
Mr. Raghav Garg

ExExExExExpppppeeeeennnnnses i
he Commmmmpppppaaaaannnnnyyyyy
he Co
he Co
f of t
ses incuncuncuncuncurrrrrrrrrreeeeed od od od od on bn bn bn bn behehehehehaaaaalllllf of t
f of t
ses i
ses i
f of the Co
he Co
f of t
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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
DiDiDiDiDirrrrreeeeectctctctctooooors sit
rs sit
rs sit
Mr. Deepak Seth
Mr. Anil Nayar
Mr. Chittranjan Dua
Mr. Abhishek Goyal
Mr. Rajendra Aneja

165.00
68.75
-
16.44
16.04
35.28

0.20
0.20
-
0.22
0.22
0.22

-
16.38
4.46
9.25

0.20
0.50
0.30
0.50
0.10

120.00
75.00
44.88
16.44
15.63
5.94

0.22
0.22
0.18
0.22
0.22
0.05

22.60
12.34
6.35
1.02

0.10
0.40
0.40
0.50
0.10

VI) TTTTTeeeeerrrrrmmmmms as as as as and cnd cnd cnd cnd cooooondndndndnditititititioioioioionnnnns of t
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sact

All the transaction with the related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year end are unsecured and interest free except the interest bearing loan and settlement
occurs in cash.

Pearl Global Industries Limited     Annual Report 2019-20

235

Notes
to standalone financial statements for the year ended March 31, 2020

VII) The remuneration of Key managerial Personnel does not include amount in repect of gratuity and leave encashment
payable as the same are not determinable as individual basis for the KMP. The liabilities of gratuity and leave encashment
are provided for Company as whole on the basis of acturial valuation.

E 48 : DISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEES PS PS PS PS PUUUUURRRRRSSSSSUUUUUAAAAANNNNNT TT TT TT TT TO SO SO SO SO SECUECUECUECUECURRRRRIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND ED ED ED ED EXXXXXCCCCCHHHHHAAAAANNNNNGGGGGE BE BE BE BE BOOOOOAAAAARRRRRD OD OD OD OD OF IF IF IF IF INNNNNDDDDDIIIIIA (LA (LA (LA (LA (LIIIIISSSSSTTTTTIIIIINNNNNGGGGG
E 48 : DI
NONONONONOTTTTTE 48 : DI
E 48 : DI
E 48 : DI
OOOOOBBBBBLLLLLIIIIIGGGGGAAAAATTTTTIIIIIOOOOONS ANS ANS ANS ANS ANNNNND DD DD DD DD DIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRRE RE RE RE RE REQEQEQEQEQUUUUUIIIIIRRRRREEEEEMMMMMEEEEENNNNNTS) RTS) RTS) RTS) RTS) REGEGEGEGEGUUUUULLLLLAAAAATTTTTIIIIIOOOOONSNSNSNSNS, 2015 A
N 186 OF TF TF TF TF THHHHHEEEEE
N 186 O
, 2015 ANNNNND SD SD SD SD SECECECECECTTTTTIIIIIOOOOON 186 O
N 186 O
, 2015 A
, 2015 A
N 186 O
, 2015 A
COCOCOCOCOMMMMMPPPPPAAAAANNNNNIIIIIEEEEES ACS ACS ACS ACS ACTTTTT, 2013.
, 2013.
, 2013.
, 2013.
, 2013.

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(a) LLLLLoooooaaaaannnnns ts ts ts ts to so so so so subsid
ubsid
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l Globbbbbaaaaal Fl Fl Fl Fl Faaaaarrrrreaeaeaeaeassssst Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd
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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
(a)(a)(a)(a)(a) DivDivDivDivDivideideideideidend pnd pnd pnd pnd paaaaaid a

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

he yearrrrr:::::
he yea
he yea
(((((iiiii))))) DDDDDeeeeeclclclclclaaaaarrrrreeeeed ad ad ad ad and pnd pnd pnd pnd paaaaaid did did did did duuuuurrrrriiiiinnnnng tg tg tg tg the yea
he yea

Final dividend for the year 2018-19: ` 3.00 per share
(2017-18: ` 2.00 per share) including dividend distribution
tax of ` 133.68 lakh for the financial year 2018-19
( ` 89.06 lakh for the financial year 2017-18)

(((((iiiiiiiiii))))) PPPPPrrrrroooooppppposeoseoseoseosed fod fod fod fod for ar ar ar ar apppppppppprrrrrovovovovovaaaaal al al al al at tt tt tt tt the Ahe Ahe Ahe Ahe Annnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg
s a liabiabiabiabiabilililililititititity)y)y)y)y)
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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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he yea
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019

783.56

522.34

-

-

649.88

133.68

(((((bbbbb))))) In March 2020, the World Health Organisation declared COVID 19 to be a pandemic. Consequent to this, Government of
India declared a national lockdown on 25 March 2020, which has impacted the business activities of the Industry and
accordingly the Company has also assessed the impact that may result from this pandemic on its liquidity position, carrying
amounts of receivables, tangible and intangible assets and other assets / liabilities. In developing the assumptions relating to
the possible future uncertainties in the global economic conditions because of this pandemic, the Company has considered
internal and external information available till the date of approval of these financial statements and has assessed its situation.

In that context and based on the current estimates, the Company believes that COVID 19 is not likely to have any material
impact on its financial statements, liquidity or ability to service its debt or other obligations. However, the overall economic
environment, being uncertain due to COVID 19, may affect the underlying assumptions and estimates in future, which may

236

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

differ from those considered as at the date of approval of these financial statements. The Company would closely monitor
such developments in future economic conditions and consider their impact on the financial statements of the relevant
periods.

(((((ccccc))))) No other material events have occurred between the balance sheet date to the date of issue of these financial statements that

could affect the values stated in the financial statements.

E 50 : LEAAAAASSSSSEEEEESSSSS
E 50 : LE
NONONONONOTTTTTE 50 : LE
E 50 : LE
E 50 : LE

Until March 31, 2019, the Company recognized leases in accordance with Ind AS 17. A lease was defined as an agreement
whereby the lessor conveys to the lessee in return for a series of payments the right to use an asset for an agreed period of time.
The lessor and lessee accounted for the lease on the basis of the distribution of the risks and rewards associated with the leased
asset.

Insofar as all the substantial risks and rewards were transferred to the Company as lessee, the respective leased assets were capitalized
at fair value or the lower present value of the minimum lease payments and depreciated using the straight-line method on the
basis of the useful life of the underlying asset or the lease term, if this was shorter. The payment obligations resulting from future
lease payments were discounted and recognized as a liability.

Where the Company was the lessee in operating leases, in other words, if not all material risks and rewards were transferred, the
lease or rental payments were recognized directly as expenses in the statement of Profit and Loss.

Since April 1, 2019, the Company has recognized leases in accordance with Ind AS 116. This defines a lease as a contract, or part
of a contract, whereby the lessor conveys to the lessee the right to use an asset for an agreed period of time in exchange for
consideration.

se of prrrrractactactactacticicicicicaaaaal exl exl exl exl expppppeeeeedddddieieieieiennnnntttttsssss
se of p
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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
s a les
CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les
s a les
s a les

On transition, the Company recognised a lease liability measured at the present value of the remaining lease payments. The
right-of-use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease,
but discounted using the lessee’s incremental borrowing rate as at April 1, 2019. Accordingly, a right-of-use asset of ` 2,908.47
lakh and a corresponding lease liability of ` 3,201.46 lakh has been recognized. The cumulative effect on transition in retained
earnings is `190.61 lakh (net of deferred tax of `102.38 lakh) (for detail please refer note below). The principal portion of the
lease payments have been disclosed under cash flow from financing activities. The lease payments for operating leases as per Ind
AS 17 Leases, were earlier reported under cash flow from operating activities. The weighted average incremental borrowing rate
has been applied to lease liabilities recognised in the balance sheet at the date of initial application.

On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the
right-of-use asset, and finance cost for interest accrued on lease liability.

Some practical expedients permitted by the standard are used, notably:

•

To not reassess upon transition whether an existing contract contains a lease. The definition of a lease under Ind AS 116 has
been applied only to contracts entered into or changed on or after April 01, 2019.

Pearl Global Industries Limited     Annual Report 2019-20

237

Notes
to standalone financial statements for the year ended March 31, 2020

•

•

•

For transition, the Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12
months from the date of transition by class of asset

The recognition exemptions for short-term leases and leases of low-value assets.

To apply Ind AS 37 for onerous leases instead of performing an impairment review.

Presentational changes: As a result of implementing Ind AS 116, the Company has made a some presentational changes in 2019-
2020, notably to present ‘Right-of-use assets’ as a separate line item in the balance sheet and to include lease liabilities in other
current and non-current liabilities.

e sheetetetetet
e she
e she
S 116 on cn cn cn cn cooooommmmmpppppaaaaannnnnyyyyy’’’’’s bs bs bs bs baaaaalllllaaaaancncncncnce she
S 116 o
S 116 o
act of Ind And And And And AS 116 o
act of I
act of I
TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion in in in in immmmmpppppact of I
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S 116 o
act of I

PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs

Right-of-use assets
Non Current Assets
Current Assets
l Assetsetsetsetsetsssss
l As
l As
TTTTTotototototaaaaal As
l As
Equity Share Capital
Other Equity
Deferred Tax Liabilities (Net)
Lease Liabilities
Non Current Liabilities
Current Liabilities
TTTTTotototototaaaaal Eql Eql Eql Eql Equuuuuititititity ay ay ay ay and Lnd Lnd Lnd Lnd Liabiabiabiabiabilililililitititititiesiesiesiesies

As aAs aAs aAs aAs attttt
ch 31, 2019
ch 31, 2019
MMMMMaaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
-
34,720.35
34,165.46
68,885.81
68,885.81
68,885.81
68,885.81
68,885.81
2,166.39
29,452.08
340.46
-
7,194.19
29,732.69
68,885.81
68,885.81
68,885.81
68,885.81
68,885.81

AAAAApppppppppplllllicicicicicaaaaatttttioioioioionnnnn
S 116
S 116
of Iof Iof Iof Iof Ind And And And And AS 116
S 116
S 116
2,908.47
-
-
2,908.47
2,908.47
2,908.47
2,908.47
2,908.47
-----
(190.61)
(102.38)
3,201.46
-
-
2,908.47
2,908.47
2,908.47
2,908.47
2,908.47

d As Attttt
d As A
d As A
RRRRReeeeevvvvviseiseiseiseised As A
d As A
il 01, 2019
il 01, 2019
AAAAAppppprrrrril 01, 2019
il 01, 2019
il 01, 2019
2,908.47
34,720.35
34,165.46
71,794.28
71,794.28
71,794.28
71,794.28
71,794.28
2,166.39
29,261.47
238.08
3,201.46
7,194.19
29,732.69
71,794.28
71,794.28
71,794.28
71,794.28
71,794.28

The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported as at
March 31, 2019 compared to the lease liability as accounted as at April 1, 2019 is primarily due to inclusion of present value of
the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per the requirement
of Ind AS 116 and exclusion of the commitments for the leases to which the Company has chosen to apply the practical expedient
as per the standard.

Lease contracts entered by the Company majorly pertains for buildings taken on lease to conduct its business in the ordinary
course. The Company does not have any lease restrictions and commitment towards variable rent as per the contract.

RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss: mov
ue of assssssetsetsetsetsetsssss
ue of a
: moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of a
ue of a
: mov
: mov
ue of a
: mov
ck ack as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2019
ch 31, 2019
ch 31, 2019
ck ack a
GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a
ch 31, 2019
ch 31, 2019
Cumulative catch-up for previously reported operating leases on implementation of IND AS 116
GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a
ck ack as as as as as at At At At At Appppprrrrril 01, 2019
il 01, 2019
il 01, 2019
ck ack a
il 01, 2019
il 01, 2019
Add: Additions during the year
Less: Disposals / adjustments during the year
ck As at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock As a
ch 31, 2020
ch 31, 2020
ck As a
ck As a
ch 31, 2020
ch 31, 2020
ck As a
AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed Dd Dd Dd Dd Deeeeeppppprrrrricia
iciaiciatttttioioioioion :n :n :n :n :
iciaicia
As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019
il 01, 2019
il 01, 2019
il 01, 2019
il 01, 2019
Add: Depreciation charge for the year
Less: Disposals/adjustments during the year
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ck :ck :
ck :ck :
NNNNNet Bet Bet Bet Bet Blololololock :
As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020

In 2019-20, there were no impairment charges recorded for right-of-use assets.

BBBBBuuuuuildildildildildiiiiinnnnngggggsssss
-----
2,908.47
2,908.47
56.58
-
2,965.05
2,965.05
2,965.05
2,965.05
2,965.05

-
350.70
-
350.70
350.70
350.70
350.70
350.70

2,614.35
2,614.35
2,614.35
2,614.35
2,614.35

238

Pearl Global Industries Limited     Annual Report 2019-20

Notes
to standalone financial statements for the year ended March 31, 2020

ue of reeeeecccccooooogggggnnnnniseiseiseiseised ld ld ld ld liabiabiabiabiabilililililitititititiesiesiesiesies
ue of r
: moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of r
ue of r
: mov
LLLLLeaeaeaeaeasessessessesses: mov
: mov
ue of r
: mov
As At April 01, 2019
Cumulative catch-up for previously reported operating leases on implementation of Ind AS 116
As AAs AAs AAs AAs At At At At At Appppprrrrril 01, 2019 (R
il 01, 2019 (Reeeeevvvvviseiseiseiseiseddddd)))))
il 01, 2019 (R
il 01, 2019 (R
il 01, 2019 (R
Add: Additions during the year
Interest expense on lease liabilities
Repayment of lease liabilities
As AAs AAs AAs AAs At Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
ch 31, 2020
Non-current lease liabilities
Current lease liabilities
se liabiabiabiabiabilililililitititititiesiesiesiesies
se l
se l
l lea
l lea
TTTTTotototototaaaaal lea
l lease l
se l
l lea

-
3,201.46
3,201.46
3,201.46
3,201.46
3,201.46
3,201.46
56.59
300.01
508.28
3,049.77
3,049.77
3,049.77
3,049.77
3,049.77
2,813.37
236.41
3,049.77
3,049.77
3,049.77
3,049.77
3,049.77

The maturity analysis of lease liabilities is given in Note 44 in the ‘Liquidity risk’ section.
Cash flows from operating activities includes cash flow from short term lease & leases of low value. Cash flow from financing
activities includes the payment of interest and the principal portion of lease liabilities.
Leases committed and not yet commenced: There are no leases commited which have not yet commenced as on reporting date.

CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a Ls a Ls a Ls a Ls a Lesesesesessososososorrrrr
The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a lessor. The
Company accounted for its leases in accordance with Ind AS 116 from the date of initial application. The Company does not
have any significant impact on account of sub-lease on the application of this standard.
The Company has given its building space, lying under property, plant and equipments, on operating lease through operating
lease  arrangements.  Income  from  operating  leases  is  recognised  as  revenue  on  a  straight-line  basis  over  the  lease  term.Lease
income of ` 980.53 Lakh (March 31, 2019: ` 814.53 Lakh) has been recognised and included under Other Income. (Refer Note
No. 28)

E 51 :
E 51 :
NONONONONOTTTTTE 51 :
E 51 :
E 51 :

Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Company is required to use specified methods for
computing arm’s length price in relation to specified international transactions with its associated enterprises. Further, the Company
is required to maintain prescribed information and documents in relation to such transactions. The appropriate method to be
adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and
other factors, which have been prescribed.The Company is in the process of updating its transfer pricing documentation for the
current financial year. Based on the preliminary assessment, the management is of the view that the update would not have a
material impact on the tax expense recorded in these financial statements. Accordingly, these financial statements do not include
any adjustments for the transfer pricing implications, if any.

NONONONONOTTTTTE 52 :
E 52 :
E 52 :
E 52 :
E 52 :

The  balances  of  trade  receivables,  trade  payables,  financials  assets  and  other  assets  given  are  subject  to  reconciliation  and
confirmation as on March 31, 2020 and have realisation in ordinary course of business atleast equal to amount at which they are
stated in the financial statements.

NONONONONOTTTTTE 53 :
E 53 :
E 53 :
E 53 :
E 53 :

Figures have been rounded off to the nearest lakhs upto two decimal places except otherwise stated.

Place of Signature: Gurugram
Date: July 28, 2020

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Managing Director
DIN 00003044

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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

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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)
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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)
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(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)