Pearl Global Limited
Annual Report 2021

Plain-text annual report

ANNUAL REPORT 2021 OR I V N E N ENM T I M P A C T GNIV AS E M I T ERZ O W A S T E GNIVAS T S O C QUIC K A D O P T A T IO N Pearl Global Industries Limited GLOBAL DESIGN & 3D DESIGN Board of Directors Mr. Deepak Seth Mr. Pulkit Seth Mrs. Shifalli Seth Mr. Uma Shankar Kaushik Mr. Shailesh Kumar Mr. Chittranjan Dua Mr. Rajendra Kumar Aneja Mr. Anil Nayar Mr. Abhishek Goyal Mrs. Madhulika Bhupatkar Ms. Neha Khanna Chief Financial Officer Mr. Narendra Kumar Somani Company Secretary Mr. Mayank Jain Audit Committee Mr. Anil Nayar Mrs. Madhulika Bhupatkar Mr. Rajendra Kumar Aneja Mr. Abhishek Goyal - - - - - - - - - - - - - - - Nomination and Remuneration Committee Mr. Abhishek Goyal Mr. Deepak Seth Mr. Rajendra Kumar Aneja Mr. Anil Nayar - - - - Stakeholder Relationship Committee Mr. Anil Nayar Mr. Pulkit Seth Mr. Rajendra Kumar Aneja Risk Management Committee Mr. Pulkit Seth Mr. Abhishek Goyal Ms. Neha Khanna - - - - - - Corporate Social Responsibility Committee Mrs. Madhulika Bhupatkar Mr. Pulkit Seth Mr. Anil Nayar - - - Auditors M/s B.R. Gupta & Co. Chartered Accountants K-55, Connaught Circus, New Delhi-110001 Bankers Punjab National Bank Standard Chartered Bank UCO Bank State Bank of India RBL Bank Limited HDFC Bank Limited Chairman Vice-Chairman & Managing Director Whole-Time Director Whole-Time Director Whole-Time Director Non-executive Independent Director Non-executive Independent Director Non-executive Independent Director Non-executive Independent Director Non-executive Independent Director Non-executive Independent Director Chairman Member Director Member Director Member Director Chairman Member Director Member Director Member Director Chairman Member Director Member Director Chairman Member Director Member Director Chairperson Member Director Member Director Registered Office C-17/1, Paschimi Marg, Vasant Vihar, New Delhi-110057 Corporate Office "Pearl Tower" Plot No. 51, Sector-32 Gurugram-122001(Haryana) Pearl Global Industries Limited Annual Report 2020-21 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 27 51 67 74 84 92 93 95 97 157 168 169 171 173 2 Pearl Global Industries Limited Annual Report 2020-21 Notice PPPPPEEEEEAAAAARRRRRL GL GL GL GL GLLLLLOOOOOBBBBBAAAAAL IL IL IL IL INNNNNDDDDDUUUUUSSSSSTTTTTRRRRRIIIIIEEEEES LS LS LS LS LIIIIIMMMMMIIIIITTTTTEEEEEDDDDD Registered Office: C-17/1, Paschimi Marg, Vasant Vihar, New Delhi-110 057 Corporate Office: Plot No.51, Sector-32, Gurugram-122001 (Haryana) Tel: 011-46012471,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 32nd Annual General Meeting of the Members of Pearl Global Industries Limited will be held on Friday, September 24, 2021 at 5:00 P.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 1.1.1.1.1. To receive, consider and adopt the Standalone and Consolidated Audited Financial Statements of the Company for the financial year ended March 31, 2021 including the Reports of the Board of Directors and Auditors thereon. 2.2.2.2.2. To appoint a Director in place of Mr. Deepak Seth (DIN 00003021), who retires by rotation and being eligible, offers himself for re-appointment. 3.3.3.3.3. To appoint a Director in place of Mr. Pulkit Seth (DIN 00003044), who retires by rotation and being eligible, offers himself for re-appointment. SSSSSPPPPPECECECECECIIIIIAAAAAL BL BL BL BL BUUUUUSSSSSIIIIINNNNNEEEEESSSSSSSSSS 4.4.4.4.4. TTTTTO AO AO AO AO APPPPPPPPPP OOOOOIIIIINNNNN T MT MT MT MT MS. NS. NS. NS. NS. NEEEEEHHHHHA KA KA KA KA KHHHHHAAAAANNNNNNNNNNA (DA (DA (DA (DA (DIIIIINNNNN 03477800) A 03477800) A 03477800) AS AS AS AS AS AN IN IN IN IN INNNNNDDDDDEEEEEPPPPPEEEEENNNNNDDDDDEEEEENNNNNT DT DT DT DT DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR 03477800) A 03477800) A To consider and if thought fit, to pass with or without modification(s) the following resolution as a S S S S Spppppeeeeeciaciaciaciacialllll RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: “RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT 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), and recommendation of the Nomination & Remuneration Committee, Ms. Neha Khanna (DIN 03477800), who was appointed as an Additional Director of the Company with effect from June 21, 2021, 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 a Non-Executive Independent Director of the Company to hold office for a term of upto five (5) consecutive years commencing from June 21, 2021, not liable to retire by rotation. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT the Board or any Committee thereof, be and is hereby authorized to do all such things, deeds, matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.” 5.5.5.5.5. TTTTTO RO RO RO RO REEEEE-----AAAAAPPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRR . A. A. A. A. ABBBBBHHHHHIIIIISSSSSHHHHHEEEEEK GK GK GK GK GOOOOOYYYYYAAAAALLLLL N: 01928855) AS AS AS AS AS AN IN IN IN IN INNNNN DDDDD EEEEE PPPPP EEEEE NNNNN DDDDD EEEEE NNNNN TTTTT ( D( D( D( D( DIIIII N: 01928855) A N: 01928855) A N: 01928855) A N: 01928855) A DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRR To consider and if thought fit, to pass with or without modification(s) the following resolution as SSSSSpppppeeeeeciaciaciaciacialllll RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: “R“R“R“R“REEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Companies Act, 2013(“the Act”) read with Schedule IV to the Act (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force) and the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended from time to time and the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), and pursuant to the recommendation of the Nomination & Remuneration Committee and the Board of Directors, Mr. Abhishek Goyal (DIN 01928855), who holds office of Independent Director up to May 25, 2022 and who has submitted a declaration that he meets the criteria for independence as provided under Section 149(6) of the Act and Regulation 16(1) (b) of the Securities Exchange Pearl Global Industries Limited Annual Report 2020-21 3 Notice (contd...) Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015 and in respect of whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing his candidature for the office of Director, be and is hereby re-appointed as an Independent Director of the Company for a second term of five (5) consecutive years commencing from May 26, 2022, not liable to retire by rotation. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT the Board or any Committee thereof, be and is hereby authorized to do all such things, deeds, matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.” RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mrs. Shifalli Seth, Whole-time Director shall be responsible for affairs of the Company with special focus on Design and Development of Products of the Company and also perform such other duties and services as shall from time to time be entrusted to her by the Board of Directors of the Company. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT the Board or any Committee thereof, be and is hereby authorized to do all such things, deeds, matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.” 7.7.7.7.7. TTTTTO AO AO AO AO APPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRR . P. P. P. P. PAAAAALLLLLLLLLLAAAAAB BB BB BB BB BAAAAANNNNNEEEEERRRRRJJJJJEEEEEE (DE (DE (DE (DE (DIIIIINNNNN 07193749) AS DS DS DS DS DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR 07193749) A 07193749) A 07193749) A 07193749) A 6.6.6.6.6. TTTTTO RO RO RO RO REEEEE-----AAAAAPPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRRS. SS. SS. SS. SS. SHHHHHIIIIIFFFFFAAAAALLLLLLLLLLI SI SI SI SI SEEEEETTTTTH (DH (DH (DH (DH (DIIIIIN:N:N:N:N: 01388430) AS WS WS WS WS WHHHHHOOOOOLLLLLEEEEE-----TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRR 01388430) A 01388430) A 01388430) A 01388430) A To consider and if thought fit, to pass with or without modification(s) the following resolution as SSSSSpppppeeeeeciaciaciaciacialllll RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: “R“R“R“R“REEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT pursuant to the provisions of Sections 196, 197, 203 read with Schedule V and other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification(s), enactment(s) or re-enactment(s) thereof for the time being in force) and Regulation 17(6)(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), the approval of the members of the Company be and is hereby accorded for re-appointment and payment of remuneration to Mrs. Shifalli Seth as Whole-Time Director of the Company for a further period of three years, commencing from January 19, 2021, with liberty to the Board of Directors to alter and vary the terms and conditions and / or remuneration. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mrs. Shifalli Seth will be entitled for the following remuneration as Whole-Time Director of the Company: (((((AAAAAmoumoumoumoumounnnnnt it it it it in n n n n `````))))) ` 6.25 Lakh per month. A Company maintained car PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Salary Car for official purpose. Mobile / Telephone A mobile for official purpose. As per Company’s rules. Provident Fund & Gratuity To consider and if thought fit, to pass with or without modification(s) the following resolution as an O O O O Orrrrrdddddiiiiinnnnnaaaaarrrrryyyyy RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: "RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAAT T T T T pursuant to the provisions of the Section 152 of the Companies Act, 2013 and other applicable provisions (including any modification or re- enactment thereof ) if any, of the Companies Act, 2013 ("the Act") and based on the recommendation of Nomination and Remuneration Committee and Board of Directors, Mr. Pallab Banerjee (DIN 07193749) who qualifies for appointment as Director, and in respect of whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing his candidature for the office of Director, be and is hereby appointed as a Director of the Company with effect from October 1, 2021, liable to retire by rotation. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT the Board or any Committee thereof, be and is hereby authorized to do all such things, deeds, matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.” 8.8.8.8.8. TTTTTO AO AO AO AO APPPPPPPPPPOOOOOIIIIINNNNNT MT MT MT MT MRRRRR . P. P. P. P. PAAAAALLLLLLLLLLAAAAAB BB BB BB BB BAAAAANNNNNEEEEERRRRRJJJJJEEEEEE (DE (DE (DE (DE (DIIIIINNNNN 07193749) AS WS WS WS WS WHHHHHOOOOOLLLLLEEEEE-----TTTTTIIIIIMMMMME DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOOR TR TR TR TR TOOOOO 07193749) A 07193749) A 07193749) A 07193749) A BBBBBE DE DE DE DE DEEEEE SSSSSIIIIIGGGGG NNNNNAAAAATTTTT EEEEED AD AD AD AD AS JS JS JS JS JOOOOOIIIIINNNNN T MT MT MT MT MAAAAANNNNNAAAAAGGGGG IIIIINNNNN GGGGG DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRR To consider and if thought fit, to pass with or without modification(s) the following resolution as SSSSSpppppeeeeeciaciaciaciacialllll RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: “RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT pursuant to the provisions of Sections 196, 197, 203 read with Schedule V and other applicable provisions, if any, of the Companies Act, 4 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) 2013 (including any statutory modification(s), enactment(s) or re-enactment(s) thereof for the time being in force) and Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and Article of Association of the Company and as per recommendation of Nomination and Remuneration Committee, approval of the members of the Company be and is hereby accorded for appointment and payment of remuneration to Mr. Pallab Banerjee as Whole-Time Director to be designated as Joint Managing Director of the Company for a period of Three years, with effect from October 1, 2021, with liberty to the Board of Directors to alter and vary the terms and conditions and / or remuneration.” RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Pallab Banerjee will be entitled for annual remuneration upto ` 2.75 Crore including incentive. He will be provided reimbursement of actual business expenses of accommodation, Conveyance including Driver and Entertainment reimbursement, Provident Fund & Gratuity and other benefits as per Company’s rules. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT Mr. Pallab Banerjee, Joint Managing Director shall perform such duties and exercise such powers as may be entrusted to him from time to time by the Board of Directors except such matters which are specifically to be done by the Board of Directors under the Articles of Association of the Company or under the Companies Act, 2013 and the rules thereunder or under SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT the Board or any Committee thereof, be and is hereby authorized to do all such things, deeds, matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.” 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 PAAAAA RRRRRTTTTT YYYYY P P REEEEE LLLLL AAAAATTTTT EEEEE D D D R R D P P D R R TTTTTRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOON WN WN WN WN WIIIIITTTTTH MH MH MH MH MRRRRR . P. P. P. P. PUUUUULLLLLKKKKKIIIIIT ST ST ST ST SEEEEETTTTTH,H,H,H,H, MMMMMAAAAANNNNNAAAAAGGGGGIIIIINNNNNG DG DG DG DG DIIIIIRRRRRECECECECECTTTTTOOOOOR OR OR OR OR OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY FFFFF OOOOO R HR HR HR HR HOOOOO LLLLL DDDDD IIIII NNNNN G OG OG OG OG OFFIFFIFFIFFIFFICCCCC E OE OE OE OE OR PR PR PR PR PLLLLL AAAAACCCCC E OE OE OE OE OFFFFF PPPPPRRRRROOOOOFIFIFIFIFIT IT IT IT IT IN TN TN TN TN THHHHHE BE BE BE BE BRRRRRAAAAANNNNNCCCCCH OH OH OH OH OFFIFFIFFIFFIFFICCCCCE OE OE OE OE OF TF TF TF TF THHHHHEEEEE CCCCCOOOOOMMMMMPPPPPAAAAANNNNNY AY AY AY AY AS CS CS CS CS CHHHHHIIIIIEEEEEF EF EF EF EF EXXXXXECUECUECUECUECUTTTTTIIIIIVVVVVE OE OE OE OE OFFIFFIFFIFFIFFICCCCCEEEEERRRRR To consider and if thought fit, to pass with or without modification(s) the following resolution as a S S S S Spppppeeeeeciaciaciaciacialllll RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: “R“R“R“R“REEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT pursuant to the provisions of Section 188(1)(f ) of the Companies Act, 2013, read with Companies (Meetings of Board and its powers) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013 (Act), including any statutory modification(s) or re-enactment thereof for the time being in force and as may be enacted from time to time, the consent of the members be and is hereby accorded to the appointment of Mr. Pulkit Seth, Managing Director of the Company (son of Mr. Deepak Seth, Chairman and Non-Executive Director of the Company and husband of Mrs. Shifalli Seth, Whole-Time Director of the Company), holding office or place of profit, as Chief Executive officer of branch office of the Company in United State of America with effect from October 1, 2021 at a remuneration for an amount not exceeding ` 3.75 Crore per annum or its equivalent in foreign currency. RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED FD FD FD FD FUUUUURRRRRTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAATTTTT the consent of the members be and is hereby accorded to the Nomination & Remuneration Committee/Board of Directors of the Company, to finalise and decide the change in designation/revisions in the remuneration payable to Mr. Pulkit Seth from time to time in accordance with the Company’s policy on performance measurement and such other applicable/relevant policies and to perform and execute all such acts, deeds, matters and things (including delegating 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.” O 10.10.10.10.10. TTTTTO 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 TTTTT RRRRR AAAAA N SN SN SN SN SAAAAACCCCCTTTTT IIIII OOOOO NS FNS FNS FNS FNS FOOOOO R TR TR TR TR THHHHH E FI E FIE FINNNNNAAAAA NNNNN CCCCC IIIIIAAAAA LLLLL E FIE 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 O O O O Orrrrrdddddiiiiinnnnnaaaaarrrrryyyyy RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: “RRRRREEEEESSSSSOOOOOLLLLLVVVVVEEEEED TD TD TD TD THHHHHAAAAATTTTT in partial modification of the Resolution passed by the members in their 31st Annual General Meeting held on November 26, 2020, for entering into related party transactions for FY 2021- 22, and 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- Pearl Global Industries Limited Annual Report 2020-21 5 Notice (contd...) 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 Pearl Global (HK) Limited, a wholly owned subsidiary of the Company for the financial year 2021-22, as per following revised terms & conditions. e ofe of NNNNNaaaaatttttuuuuurrrrre of NNNNNaaaaame ofme ofme ofme ofme of e ofe of sactioioioioionnnnnsssss sact sact RRRRRelelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy TTTTTrrrrraaaaannnnnsact sact Pearl Global Sale of Goods (HK) Limited AAAAAmoumoumoumoumounnnnnttttt (((((````` i i i i in Cn Cn Cn Cn Crrrrrooooorrrrre)e)e)e)e) 375.00 Purchase of Goods SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf Other supporting services 10.00 1.50 7.50 30.00 15.00 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.” 11.11.11.11.11. TTTTTO O O O O APPPPP PPPPP RRRRRO VO VO VO VO VE E E A A E E A A R R REEEEE LLLLL AAAAATTTTT EEEEE D D D P P PAAAAA RRRRRTTTTT YYYYY D R R P D P E FIE FINNNNNAAAAA NNNNN CCCCC IIIIIAAAAA LLLLL E FIE FI TTTTT RRRRR AAAAA N SN SN SN SN SAAAAACCCCCTTTTT IIIII OOOOO NS FNS FNS FNS FNS FOOOOO R TR TR TR TR THHHHH E FI YYYYYEEEEEAAAAAR 2022-2023 R 2022-2023 R 2022-2023 R 2022-2023 R 2022-2023 To consider and if thought fit, to pass with or without modification(s) the following resolution as an O O O O Orrrrrdddddiiiiinnnnnaaaaarrrrryyyyy RRRRResoesoesoesoesollllluuuuutttttioioioioionnnnn::::: “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, Pearl Grass Creations Limited, Prudent Fashions Limited, Vin Pearl Global Vietnam Limited, Pearl Global F.Z.E., PGIC Investment limited, and Pearl Global Vietnam Co. Limited, for the financial year 2022-23, 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: August 14, 2021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn) CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy NNNNNOOOOOTTTTTEEEEESSSSS::::: 1. In view of the outbreak of the COVID-19 pandemic, social distancing is a norm to be followed and the Ministry of Corporate Affairs (“MCMCMCMCMCAAAAA”) has vide its General Circular nos. 14/2020 dated April 8, 2020; 17/ 2020 dated April 13, 2020; 22/2020 dated June 15, 2020; 02/2021 dated January 13, 2021 issued by MCA (hereinafter referred as “MCA Circulars”) read with Circular number SEBI/HO/CFD/CMD1/CIR/P/ 2020/79 dated May 12, 2020 and Circular No. SEBI/ HO/CFD/CMD2/CIR/P/2021/11 dated January 15, 2021 issued by the Securities and Exchange Board of India (“SEBI Circular”) and in compliance with the provisions of the Companies Act, 2013 (“the Act”) and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), the 32nd Annual General Meeting (AGM) of the Company is being conducted through VC/OAVM Facility, which does not require physical presence of Members at a common venue. The Registered Office of the Company shall be deemed as venue for the 32nd AGM. 6 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) 2. Since the AGM will be held through VC / OAVM, the Route Map is not annexed in this Notice. 3. The Explanatory Statement pursuant to Section 102 of the Act setting out the material facts concerning the business under Item No. 4 to 11 of the accompanying Notice is annexed hereto. The Board of Directors considers that the special businesses under Item No. 4 to 11, is unavoidable, and needs to be transacted at the 32nd AGM of the Company. 4. The relevant details, pursuant 36(3) of the SEBI Listing Regulations and Secretarial Standard on General Meetings issued by the Institute of Company Secretaries of India, in respect of Director seeking re-appointment at this AGM is annexed as AAAAAnnnnnnexnexnexnexnexuuuuurrrrreeeee-----IIIII. 5. Pursuant to the provisions of the Act, a member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his/her behalf and the proxy need not be a Member of the Company. Since this AGM is being held pursuant to the MCA & SEBI Circulars through VC / OAVM, physical attendance of Members has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will not be available for the AGM and hence the Proxy Form and Attendance Slip are not annexed to this Notice. 6. Corporate members intending to send their authorized representatives to attend the AGM pursuant to Section 113 of the Act, are requested to send to the Company, a certified copy (in PDF/ JPG Format) of the relevant Board Resolution/ Authority letter etc. authorizing its representatives to attend the AGM through VC / OAVM on their behalf and to vote through remote e- voting, by e-mail to investor.pgil@pearlglobal.com 7. The Members may join the 32nd AGM through VC/ OAVM Facility by following the procedure mentioned herein below in the Notice which shall be kept open for the Members from 04:30 P.M. IST i.e. 30 (thirty) minutes before the time scheduled to start the 32nd AGM and the Company may close the window for joining the VC/OAVM Facility 30 (Thirty) minutes after the scheduled time to start the 32nd AGM. Members may note that the VC/ OAVM Facility, allows participation of at least 1,000 Members on a ‘first come first served’ basis. The large Shareholders (i.e. shareholders holding 2% or more), promoters, institutional investors, directors, key managerial personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, auditors etc. can attend the 32nd AGM without any restriction on account of ‘first come first served’ basis. 8. The attendance of the Members participating in the 32nd AGM through VC/ OAVM Facility shall be counted for the purpose of reckoning the quorum under Section 103 of the Act. 9. Voting rights shall be reckoned on the paid-up value of shares registered in the name of member/beneficial owners (in case of electronic shareholding) as on the cut-off date i.e. Friday, September 17, 2021. 10. In view of the outbreak of the COVID-19 pandemic, resultant difficulties involved in dispatching of physical copies of the Annual Report and in line with the MCA Circulars and SEBI Circulars, the Annual Report for the year 2020-21 including Notice of the 32nd AGM of the Company, inter alia, indicating the process and manner of e-voting is being sent only by Email, to all the Members whose Email IDs are registered with the Company/ Registrar and Share Transfer Agent or with the respective Depository Participant(s) for communication purposes to the Members and to all other persons so entitled. the website 11. Further, in terms of the applicable provisions of the Act, SEBI Listing Regulations read with the MCA Circulars and SEBI Circular, the Annual Report including Notice of the 32nd AGM of the Company will also be available on at of www.pearlglobal.com. The same can also be accessed from the websites of the Stock Exchanges i.e. BSE Limited at www.bseindia.com and National Stock Exchange of India Limited at www.nseindia.com and on the website of Link Intime India Private Limited (“LLLLLiiiiinnnnnk Ik Ik Ik Ik Innnnntttttiiiiimememememe”) at https://instavote.linkintime.co.in. the Company 12. Pursuant to Section 91 of the Act, the Register of Members of the Company will remain closed from Saturday, September 18, 2021 to Friday, September 24, 2021 (both the days inclusive). 13. Members holding shares in electronic form are requested to intimate immediately any change in their address or bank mandates to their Depository Participants with whom they are maintaining their demat accounts. Members holding shares in physical Pearl Global Industries Limited Annual Report 2020-21 7 Notice (contd...) form are requested to advise any change of address immediately to the Company’s Registrar and Share Transfer Agent, LinkIntime at their address – Noble Heights, 1st floor, Plot No. NH 2, LSC, C-1 Block, Near Savitri Market, Janakpuri, New Delhi – 110058; Email – delhi@linkintime.co.in. 14. Members must quote their Folio No. /Demat Account No. and contact details such as e-mail address, contact no. etc. in all their correspondence with the Company’s Registrar and Share Transfer Agent, LinkIntime. 15. The Securities and Exchange Board of India (“SEBI”) has mandated the submission of Permanent Account Number (“PAN”) by every participant in securities market. Members holding shares in electronic form are, therefore, requested to submit PAN to their Depository Participants with whom they are maintaining their demat accounts. Members holding shares in physical form can submit their PAN details to the Company/ Registrar and Share Transfer Agent. 16. The Registers maintained under Section 170 & 189 of the Act and all relevant documents as referred in the Notice calling the AGM and the Explanatory Statement will be available electronically for inspection by the Members upto the date of AGM. Members seeking to inspect such documents can send an email to investor.pgil@pearlglobal.com. 17. In terms of the SEBI Listing Regulations, securities of listed companies can only be transferred in dematerialized form with effect from April 01, 2019. In view of the above, Members are advised to dematerialize shares held by them in physical form. 18. Members are requested to note that in terms of Section 124 and 125 of the Companies Act, 2013, dividend remaining unclaimed for a period of seven years from the date of transfer to the Company’s unpaid dividend Account shall be transferred to the Investor Education and Protection Fund (“IIIIIEEEEEPPPPPFFFFF”) and all shares on which dividend has not been paid or claimed for seven consecutive years or more shall also be transferred to IEPF Authority as notified by the Ministry of Corporate Affairs. The Company has been transferring the unpaid or unclaimed dividends from time to time on due dates to the Investor Education and Protection Fund (“IEPF”). Information in respect of unclaimed dividend including when due for transfer to the Investor Education and Protection Fund is given below: FFFFFiiiiinnnnnaaaaancianciancianciancial yea l yea l yea l yearrrrr l yea eeeeendendendendendeddddd shshshshshaaaaarrrrre ce ce ce ce caaaaapppppitititititaaaaalllll 31.03.2014 31.03.2015 31.03.2016 31.03.2016 31.03.2017 31.03.2018 31.03.2019 RRRRRaaaaattttte of Div e of Div e of Div e of Divideideideideidend Dnd Dnd Dnd Dnd Deeeeeclclclclclaaaaarrrrreeeeeddddd e of Div ooooon tn tn tn tn the phe phe phe phe paaaaaididididid-----uuuuup ep ep ep ep eqqqqquuuuuititititityyyyy DivDivDivDivDivideideideideidendndndndnd 20.00% (Final) 22.50% (Final) 25.00% (Interim) 5.00% (Final) 30.00% (Final) 20.00% (Final) 30.00% (Final) DDDDDaaaaattttte of e of e of e of e of dededededeclclclclclaaaaarrrrraaaaatttttioioioioion ofn ofn ofn ofn of DivDivDivDivDivideideideideidendndndndnd 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 IIIIIEEEEEP FP FP FP FP Fuuuuundndndndnd 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 23.11.2021 19.11.2022 08.05.2023 25.11.2023 26.11.2024 22.11.2025 22.11.2026 Members who have not claimed their dividend 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. 19. Members who wish to obtain any information about the Company or view the financial statements for the financial year ended March 31, 2021 send their queries at investor.pgil@pearlglobal.com at least 7 (Seven) days before the date of 32nd AGM. The same will be replied by/ on behalf of the Company suitably. 20. Members who have not registered their E-mail address so far are requested to register their e-mail for receiving all communications including Annual Report, Notices and Circulars etc. from the Company electronically. Members can do this by updating their email addresses with their depository participants. 8 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) 21. In case of joint holders attending the 32nd AGM, the Member whose name appears as the first holder in the order of names as per the Register of Members of the Company will be entitled to vote. 22.22.22.22.22. EEEEE-----VOVOVOVOVOTTTTTIIIIINNNNNGGGGG In compliance with provisions of Section 108 of the Act read with Rule 20 of the Companies (Management and Administration) Rules, 2014 (as amended), Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company Secretaries of India (“ICSI”) and Regulation 44 of the SEBI Listing Regulations, the Company is pleased to provide its Members the facility to cast their votes either for or against each resolutions set forth in the Notice of the 32nd AGM using electronic voting system (‘remote e-voting’) and e-voting (during the 32nd AGM), provided by Link Intime and the businesses may be transacted through such voting. Only those Members who will be present in the 32nd AGM through VC / OAVM facility and have not cast 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 system during the 32nd AGM. The voting period begins on Tuesday, September 21, 2021 (9.00 AM IST) and ends on Thursday, September 23, 2021 (5.00 PM IST). During this period, Members holding shares either in physical or dematerialized form, as on cut-off date, i.e. as on Friday, September 17, 2021 may cast their votes electronically. Any person, who acquires shares of the Company and becomes a Member of the Company after dispatch of the Notice of 32nd AGM and holds shares as of the cut-off date, may obtain the login ID and password by sending a request at investor.pgil@pearlglobal.com or delhi@linkintime.co.in (RTA email id). However, if a member is already registered with Link Intime for e- voting , then he/she can use existing user id and password/PIN for casting the vote. FOOOOO RRRRR F F S ANNNNN D MD MD MD MD MAAAAA NNNNN NNNNN EEEEE R R R S A AAAAA..... PPPPP RRRRROOOOO CCCCC EEEEE SSSSS S A S A R F F R S A AAAAATTTTTTTTTTEEEEENNNNNDDDDDIIIIINNNNNG TG TG TG TG THHHHHE AE AE AE AE ANNNNNNNNNNUUUUUAAAAAL GL GL GL GL GEEEEENNNNNEEEEERRRRRAAAAALLLLL MMMMMEEEEEEEEEETTTTTIIIIINNNNNG TG TG TG TG THHHHHRRRRROOOOOUUUUUGGGGGH IH IH IH IH INSNSNSNSNSTTTTTAAAAAMMMMMEEEEEEEEEETTTTT::::: Open the internet browser and launch the URL: https://instameet.linkintime.co.in. Select the “““““CoCoCoCoCommmmmpppppaaaaannnnnyyyyy” ” ” ” ” and ‘E‘E‘E‘E‘Evvvvveeeeennnnnt Dt Dt Dt Dt Daaaaattttte’ e’ e’ e’ e’ and register with your following details: - A. 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 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 neficiarrrrry Iy Iy Iy Iy IDDDDD neficia DigDigDigDigDigit Bit Bit Bit Bit Beeeeeneficia neficia 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 ppppp hhhhhysic ysic ysic ysicaaaaa l fol fol fol fol forrrrrm shm shm shm shm shaaaaa lllll l pl pl pl pl prrrrro vo vo vo vo vide ide ide ide Folio ysic ide Number registered with the Company B. PPPPPAAAAAN: N: N: N: N: 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. MMMMMooooobbbbbile Nile Nile Nile Nile Nooooo.: .: .: .: .: Enter your mobile number D. 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). B.B.B.B.B. IIIIINSNSNSNSNSTTTTTRRRRRUUUUUCCCCCTTTTTIIIIIOOOOONS FNS FNS FNS FNS FOOOOOR SR SR SR SR SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRS/S/S/S/S/ MMMMM EEEEE MMMMM BBBBB EEEEE RRRRR S TS TS TS TS TO SO SO SO SO SPPPPP EEEEE AAAAA K DK DK DK DK DUUUUU RRRRR IIIII NNNNN G TG TG TG TG THHHHH EEEEE AAAAA NNNNN NNNNN UUUUUAAAAA L L MEEEEE EEEEETTTTT IIIII NNNNN GGGGG L M GEEEEE NNNNN EEEEE RRRRR AAAAA L M L M G G L L L L M G G L TTTTTHHHHHRRRRROOOOOUUUUUGGGGGH IH IH IH IH INSNSNSNSNSTTTTTAAAAAMMMMMEEEEEEEEEETTTTT::::: 1. 2. 3. Shareholders who would like to speak during the meeting must register their request 4(Four) days in advance i.e. on or before September 20, 2021, with the company on the specific email id i.e. investor.pgil@pearl global.com. Shareholders will get confirmation on first cum first basis. Shareholders will receive “speaking serial number” once they mark attendance for the meeting. Pearl Global Industries Limited Annual Report 2020-21 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 panelist 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. C.C.C.C.C. IIIIINSNSNSNSNSTTTTTRRRRRUUUUUCCCCCTTTTTIIIIIOOOOONS FNS FNS FNS FNS FOOOOOR SR SR SR SR SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRS/S/S/S/S/ MMMMM EEEEE MMMMM BBBBB EEEEE RRRRR S TS TS TS TS TO VOO VOO VOO VOO VOTTTTT E DE DE DE DE DUUUUU RRRRR IIIII NNNNN G TG TG TG TG THHHHH EEEEE AAAAA NNNNN NNNNN UUUUUAAAAA L G G L L GEEEEE NNNNN EEEEE RRRRR AAAAA L M L M L M L MEEEEE EEEEETTTTT IIIII NNNNN GGGGG L G G L L M TTTTTHHHHHRRRRROOOOOUUUUUGGGGGH IH IH IH IH INSNSNSNSNSTTTTTAAAAAMMMMMEEEEEEEEEETTTTT 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 NNNNNotototototeeeee::::: • • • • • 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- facility during the meeting. Voting 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 10 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) DDDDD..... RRRRREEEEEMOMOMOMOMOTTTTTE EE EE EE EE E-----VOVOVOVOVOTTTTTIIIIINNNNNG IG IG IG IG INSNSNSNSNSTTTTTRRRRRUUUUUCCCCCTTTTTIIIIIOOOOONS FNS FNS FNS FNS FOOOOOR SR SR SR SR SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRSSSSS::::: Pursuant to SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in demat mode can vote through their demat account maintained with Depositories and Depository Participants only post June 9, 2021. Shareholders are advised to update their mobile number and email Id in their demat accounts to access e-Voting facility. LLLLLOOOOOGGGGGIIIIIN MN MN MN MN MEEEEETTTTTHHHHHOOOOOD FD FD FD FD FOOOOOR IR IR IR IR INNNNNDDDDDIIIIIVVVVVIIIIIDDDDDUUUUUAAAAAL SL SL SL SL SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRSSSSS e of shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs e of sh TTTTTypypypypype of sh e of sh e of sh LLLLLooooogggggiiiiin Mn Mn Mn Mn Metetetetethohohohohoddddd IIIIIndndndndndivivivivividididididuuuuuaaaaal Shl Shl Shl Shl Shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs ies i ies i ies innnnn hohohohoholdldldldldiiiiinnnnng seg seg seg seg secucucucucurrrrrititititities i ies i dededededemmmmmaaaaat mo t mo t mo t mode wde wde wde wde wititititith NS h NS h NS h NSDDDDDLLLLL t mo h NS • If you are already registered for NSDL IDeAS facility, please visit the e- Services website of NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com either on a Personal Computer or on a mobile. Once the home page of e-Services is launched, click on the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’ section. A new screen will open. You will have to enter your User ID and Password. • After successful authentication, you will be able to see e-Voting services. Click on “Access to e-Voting” under e-Voting services and you will be able to see e- Voting page. Click on company name or e-Voting service provider name and you will be re-directed to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. • If the user is not registered for IDeAS e-Services, option to register is available at https://eservices.nsdl.com. Select “Register Online for IDeAS “Portal or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp • Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/ Member’ section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number hold with NSDL), Password/OTP and a Verification Code as shown on the screen. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. IIIIIndndndndndivivivivividididididuuuuuaaaaal Shl Shl Shl Shl Shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs hohohohoholdldldldldiiiiinnnnng seg seg seg seg secucucucucurrrrrititititities i ies innnnn ies i ies i ies i t mode wde wde wde wde wititititith Ch Ch Ch Ch CDDDDDSSSSSLLLLL t mo dededededemmmmmaaaaat mo t mo t mo • Existing user of who have opted for Easi / Easiest, they can login through their user id and password. Option will be made available to reach e-Voting page without any further authentication. The URL for users to login to Easi /Easiest are https://web.cdslindia.com/myeasi/home/login or www.cdslindia.com and click on New System Myeasi. • After successful login of Easi / Easiest the user will be also able to see the E Voting Menu. The Menu will have links of e-Voting service provider i.e. NSDL, KARVY, LINK NTIME, CDSL. Click on e-Voting service provider name to cast your vote. Pearl Global Industries Limited Annual Report 2020-21 11 Notice (contd...) IIIIIndndndndndivivivivividididididuuuuuaaaaal Shl Shl Shl Shl Shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs (((((hohohohoholdldldldldiiiiinnnnng seg seg seg seg secucucucucurrrrrititititities i ies innnnn ies i ies i ies i dededededemmmmmaaaaat mo t mo t mo de) & lo de) & lo de) & logggggiiiiinnnnn t mode) & lo t mo de) & lo r depppppositositositositositooooorrrrryyyyy ttttthhhhhrrrrrououououougggggh th th th th theiheiheiheiheir de r de r de r de pppppaaaaarrrrrtttttici iciicipppppaaaaannnnntttttsssss iciici IIIIIndndndndndivivivivividididididuuuuuaaaaal Shl Shl Shl Shl Shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs hohohohoholdldldldldiiiiinnnnng seg seg seg seg secucucucucurrrrrititititities i ies i ies i ies innnnn ies i PPPPPhhhhhysicysicysicysicysicaaaaal mo l mo l mo de & e de & e de & evvvvvotototototiiiiinnnnnggggg l mode & e l mo de & e seseseseserrrrrvvvvvicicicicice Pe Pe Pe Pe Prrrrrovovovovovideideideideider isr isr isr isr is LLLLLIIIIINNNNNKKKKKIIIIINNNNNTTTTTIIIIIMMMMMEEEEE..... • If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.com/myeasi./Registration/EasiRegistration Alternatively, the user can directly access e-Voting page by providing demat Account Number and PAN No. from a link in www.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the demat Account. After successful authentication, user will be provided links for the respective ESP where the E Voting is in progress. • You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e-Voting facility. • Once login, you will be able to see e-Voting option. Once you click on e- Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. 1. Open the internet browser and launch the URL: https://instavote.linkin time.co.in “Sig“Sign Un Un Un Un Uppppp” ” ” ” ” under ‘S‘S‘S‘S‘SHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR’ ’ ’ ’ ’ tab and register with “Sig“Sig Click on “Sig your following details: - AAAAA..... UUUUUseseseseser Ir Ir Ir Ir IDDDDD: : : : : Shareholders/ members holding shares in ppppphhhhhysicysicysicysicysicaaaaal fol fol fol fol forrrrrmmmmm shshshshshaaaaallllll pl pl pl pl prrrrrovovovovovide ide ide ide Event No + Folio Number registered with the Company. ide B.B.B.B.B. PPPPPAAAAA N: N: N: N: N: 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 ppppphhhhhysicysicysicysicysicaaaaal fol fol fol fol forrrrrm m m m m 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). 2. Click on ‘Login’ under ‘S‘S‘S‘S‘SHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR’ ’ ’ ’ ’ tab. 3. Enter your User ID, Password and Image Verification (CAPTCHA) Code and click on ‘S‘S‘S‘S‘Subububububmmmmmit’it’it’it’it’..... 4. After successful login, you will be able to see the notification for e-voting. Select ‘‘‘‘‘VVVVVieieieieiewwwww’ ’ ’ ’ ’ icon..... 5. E-voting page will appear. 12 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) 6. Refer the Resolution description and cast your vote by selecting your desired option ‘F‘F‘F‘F‘Faaaaavvvvvououououour / Ag r / Agaaaaaiiiiinnnnnssssst’ t’ t’ t’ t’ (If you wish to view the entire Resolution details, r / Ag r / Ag r / Ag click on the ‘‘‘‘‘VVVVVieieieieiew Rw Rw Rw Rw Resoesoesoesoesollllluuuuutttttioioioioionnnnn’ ’ ’ ’ ’ file link). 7. After selecting the desired option i.e. Favour / Against, click on ‘S‘S‘S‘S‘Subububububmmmmmit’it’it’it’it’. . . . . 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. FFFFFOOOOOR IR IR IR IR INSNSNSNSNSTTTTTIIIIITTTTTUUUUUTTTTTIIIIIOOOOONNNNNAAAAAL SL SL SL SL SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRSSSSS::::: 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 ‘‘‘‘‘CCCCCuuuuussssstttttooooodddddi 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 / Co nd / Co nd / Corprprprprpooooorrrrraaaaattttteeeee nd / Co BBBBBooooodydydydydy’ ’ ’ ’ ’ login for the Scrutinizer to verify the same. IIIII NNNNN DDDDD IIIII VVVVV IIIII DDDDD UUUUUAAAAA L SL SL SL SL SHHHHH AAAAA RRRRR EEEEE HHHHH OOOOO LLLLL DDDDD EEEEE RRRRR S HS HS HS HS HOOOOO LLLLL DDDDD IIIII NNNNN GGGGG SSSSSECUECUECUECUECURRRRRIIIIITTTTTIIIIIEEEEES IS IS IS IS IN PN PN PN PN PHHHHHYSYSYSYSYSIIIIICCCCCAAAAAL MOL MOL MOL MOL MODDDDDE & E E & E E & E E & EVOVOVOVOVOTTTTTIIIIINNNNNGGGGG E & E SSSSSEEEEERRRRRVVVVVIIIIICCCCCE PE PE PE PE PRRRRROVOVOVOVOVIIIIIDDDDDEEEEER IR IR IR IR IS LS LS LS LS LIIIIINNNNNKKKKK IIIIINNNNN TTTTTIIIIIMMMMMEEEEE , H, H, H, H, HAAAAAVVVVVEEEEE FFFFFOOOOORRRRRGGGGGOOOOOTTTTTTTTTTEEEEEN TN TN TN TN THHHHHE PE PE PE PE PAAAAASSSSSSWSWSWSWSWOOOOORRRRRDDDDD::::: Click on ‘L‘L‘L‘L‘Looooogggggiiiiinnnnn’ ’ ’ ’ ’ under ‘S‘S‘S‘S‘SHHHHHAAAAARRRRRE HE HE HE HE HOOOOOLLLLLDDDDDEEEEERRRRR’ ’ ’ ’ ’ tab and further Click ‘‘‘‘‘fofofofoforgrgrgrgrgot pot pot pot pot paaaaasssssswswswswswooooorrrrrddddd?’?’?’?’?’ Enter UUUUUs es es es es er Ir Ir Ir Ir IDDDDD, , , , , select MMMMMooooo d e d e d e d e d e and Enter Image Verification (CAPTCHA) Code and Click on ‘S‘S‘S‘S‘Subububububmmmmmit’it’it’it’it’..... • • 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. LLLLLooooogggggiiiiin tn tn tn tn typypypypypeeeee desk detaaaaailsilsilsilsils desk det HHHHHelelelelelpppppdesk det desk det desk det • 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. IIIII NNNNN DDDDD IIIII VVVVV IIIII DDDDD UUUUUAAAAA L SL SL SL SL SHHHHH AAAAA RRRRR EEEEE HHHHH OOOOO LLLLL DDDDD EEEEE RRRRR S HS HS HS HS HOOOOO LLLLL DDDDD IIIII NNNNN GGGGG SSSSSECUECUECUECUECURRRRRIIIIITTTTTIIIIIEEEEES IS IS IS IS IN DN DN DN DN DEEEEEMMMMMAAAAAT MOT MOT MOT MOT MODDDDDE WE WE WE WE WIIIIITTTTTH NSH NSH NSH NSH NSDDDDDL/L/L/L/L/ CCCCCDDDDDSSSSSL HL HL HL HL HAAAAAVVVVVE FE FE FE FE FOOOOORRRRRGGGGGOOOOOTTTTTTTTTTEEEEEN TN TN TN TN THHHHHE PE PE PE PE PAAAAASSSSSSWSWSWSWSWOOOOORRRRRDDDDD::::: Shareholders/ members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned depository/ depository participants website. • • 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 this 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”. HHHHHEEEEELLLLLPPPPPDDDDDEEEEESSSSSK FK FK FK FK FOOOOOR IR IR IR IR INNNNNDDDDDIIIIIVVVVVIIIIIDDDDDUUUUUAAAAAL SL SL SL SL SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRSSSSS HHHHHOOOOOLLLLLDDDDDIIIIINNNNNG SG SG SG SG SECUECUECUECUECURRRRRIIIIITTTTTIIIIIEEEEES IS IS IS IS IN DN DN DN DN DEEEEEMMMMMAAAAAT MOT MOT MOT MOT MODDDDDEEEEE::::: In case shareholders/ members holding securities in demat mode have any technical issues related to login through Depository i.e. NSDL/ CDSL, they may contact the respective helpdesk given below: Individual Shareholders holding Members facing any technical issue in login can contact NSDL helpdesk by securities in demat mode with NSDL sending a request at evoting@nsdl.co.in or call at toll free no.: 1800 1020 990 and 1800 22 44 30 Individual Shareholders holding Members facing any technical issue in login can contact CDSL helpdesk by securities in demat mode with CDSL sending a request at helpdesk.evoting@cdslindia.com or contact at 022- 23058738 or 22-23058542-43. Pearl Global Industries Limited Annual Report 2020-21 13 Notice (contd...) HHHHHEEEEELLLLLPPPPPDDDDDEEEEESSSSSK FK FK FK FK FOOOOOR IR IR IR IR INNNNNDDDDDIIIIIVVVVVIIIIIDDDDDUUUUUAAAAAL SL SL SL SL SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRSSSSS HHHHHOOOOOLLLLLDDDDDIIIIINNNNNG SG SG SG SG SECUECUECUECUECURRRRRIIIIITTTTTIIIIIEEEEES IS IS IS IS IN PN PN PN PN PHHHHHYSYSYSYSYSIIIIICCCCCAAAAAL MOL MOL MOL MOL MODDDDDE/E/E/E/E/ S & EVOVOVOVOVOTTTTTIIIIINNNNNGGGGG S & E IIIIINSNSNSNSNSTTTTTIIIIITTTTTUUUUUTTTTTIIIIIOOOOONNNNNAAAAAL SL SL SL SL SHHHHHAAAAARRRRREEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRS & E S & E S & E SSSSSEEEEERRRRRVVVVVIIIIICCCCCE PE PE PE PE PRRRRROVOVOVOVOVIIIIIDDDDDEEEEER IR IR IR IR IS LS LS LS LS LIIIIINNNNNKKKKKIIIIINNNNNTTTTTIIIIIMMMMMEEEEE::::: In case shareholders/ members holding securities in physical mode/ Institutional shareholders have any queries regarding e-voting, they may refer the FFFFFrrrrreeeeeqqqqqueueueueuennnnntttttly Ask ly Askeeeeed Qd Qd Qd Qd Quesuesuesuesuestttttioioioioionnnnnsssss ly Ask ly Ask ly Ask ’) and IIIIInnnnnssssstttttaaaaaVVVVVototototote ee ee ee ee e-----VVVVVotototototiiiiinnnnng mg mg mg mg maaaaannnnnuuuuuaaaaal l l l l available at ’) ’) (‘F(‘F(‘F(‘F(‘FAAAAAQQQQQsssss’) ’) https://instavote.linkintime.co.in, under HHHHHelelelelelp p p p p section or send an email to enotices@linkintime.co.in or contact on: - Tel: 022 –4918 6000. 23. CS Jayant Sood (C.P. No. 22410) proprietor of M/s Jayant Sood and Associates (Company Secretaries) has been appointed as the Scrutinizer to scrutinize the remote e-voting process and voting during 32nd AGM in a fair and transparent manner. 24. The Scrutinizer shall, immediately after the conclusion of voting at the general meeting, first count the votes cast at the meeting, thereafter 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. 25. 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 communicated to the BSE Limited and National Stock Exchange of India Limited simultaneously. 26. Section 72 of the Act provides for Nomination by the Members of the Company in the prescribed Form No. SH-13 for shares held in physical form. Blank forms will be supplied by Link Intime on request. Members holding shares in dematerialized form may contact their respective Depository Participants for recording of nomination. 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. 4 to 11 of the accompanying Notice. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 4: . 4: . 4: . 4: . 4: The Board of Directors, based on recommendation of the Nomination and Remuneration Committee, appointed Ms. Neha Khanna, as an Additional Director in the capacity of Independent Director of the Company with effect from June 21, 2021, pursuant to section 161 of the Companies Act, 2013. Ms. Neha Khanna 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. Ms. Neha Khanna 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 Ms. Neha Khanna 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. Ms. Neha Khanna, aged about 33 years, possesses experience in the field of investment banking, financial advisory, internal audit and risk management. She trained with PwC India in the audit vertical, prior to joining ANG Group. At ANG, Neha advises early stage companies and SMEs on fundraising via ValPro, the investment banking and financial advisory firm of ANG. She co-founded Enablers, an extension of ValPro focussing on startup fund raising and financial advisory services. She is committed to building an eco-system for accelerating the growth of start-ups and SMEs in India. Her experience in end-to-end transaction execution enables her to understand different perspectives of clients’ needs and helps her in concluding transactions for funding across stages, cheque sizes and sectors. She also manages the group’s proprietary investments as well as client portfolios under a PM. Asset classes include varied listed equities, unlisted equities and bonds. 14 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) After completing her B.Com at Shri Ram College of Commerce & Chartered Accountancy, Neha pursued an MBA from Saïd Business School, University of Oxford. Goyal (DIN 01928855) as Non-Executive Independent Director of the Company in the second term of five consecutive years, with effect from May 26, 2022. The Board of Directors in its meeting held on June 21, 2021, appointed Ms. Neha Khanna as member of Risk Management Committee of the Company. Details of other Directorship held in other Companies: Art People Pvt. Ltd, Nehar Enterprises Pvt.Ltd, Blue Moon Real Estate Ventures Pvt.Ltd, Shobha Printers Pvt. Ltd, Kalyani Kala Mandir for Proliferation of Arts and Cultural Sciences, Valpro Corporate Advisory Pvt.Ltd, Isht Consultants Pvt. Ltd, Hopp Worldwide Excursions Limited, Cutting Edge Infrastructure Pvt. Ltd, ANG Corporate Services Pvt. Ltd, Pearl Mineral Tamilnadu Pvt. Ltd, Value Prolific Consulting Services Pvt. Ltd, N.S. Exports Pvt. Ltd, Pearl Mineral Retail Pvt. Ltd, Value Prolific Investments and Consulting Pvt. Ltd, Pearl Mineral Pvt.Ltd, ANG Wealth LLP. Anita and Gadia. She will be paid remuneration by way of sitting 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 meeting of Board of Directors. Additional information in respect to Ms. Neha Khanna, pursuant to Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Secretarial Standard 2 is annexed as Annexue-1 to this Notice. Shareholders’ approval is sought for appointment of Ms. Neha Khanna as an Independent Director of the Company. None of the Directors and Key Managerial Personnel of the Company, or their relatives, except Ms. Neha Khanna, herself is interested, financially or otherwise, in this Resolution. Your Directors recommend the passing of the resolution at Item no.4 as a Special Resolution. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 5: . 5: . 5: . 5: . 5: Mr. Abhishek Goyal was appointed as Non-Executive Independent Director of the Company in the first term of five consecutive years, with effect from May 26, 2017 by the members in their 28th Annual General Meeting held on September 28, 2017. The first term of Mr. Abhishek Goyal is valid upto May 25, 2022. The Board of Directors in its meeting held on August 14, 2021, on the recommendation of Nomination and Remuneration Committee, have re-appointed Mr. Abhishek Mr. Abhishek Goyal is not disqualified from being appointed as Director in terms of Section 164 of the Act and has given his consent to act as Independent Director of the Company in the second term. The Company has also received declaration from Mr. Abhishek Goyal that he 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. He 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, he fulfils the conditions as specified in the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Abhishek Goyal, aged about 40 years, is graduated in Finance and Economics from The University of Virginia in 2002. He worked with Andor Capital Management ($11B AUM Long/Short Equity Fund) in Manhattan (between 2002- 2008), as Senior Analyst, covering technology companies with a focus on hardware and software. He then moved to Hong Kong (2008 - 2009) to start Andor’s office there and invest in Asian companies. In 2009, he joined White Elm Capital, as Senior Analyst and managed a $80M India-focused portfolio. In 2013, he co-founded OnCourse Vantage Pvt Ltd. OnCourse is India’s foremost creative and alternate education company. The mission of the company is to bridge the gap between formal classroom education and real-world skills, by offering a plethora of institutional and non- institutional programs to help develop life-skills along with assisting students who are looking for a world-class education abroad. Details of other Directorship held by him in other Companies (excluding foreign companies and bodies corporate) are as follows: Indo Nippon Foods Private Limited, Harki Properties and Investments Private Limited, Kolar Food Specialties Private Limited, Indicon Westfalia Limited, House of Grains (India) Private Limited, Decimal Wealth Partners Pvt Ltd., On-Course Vantage Pvt Ltd., Lakshmi Milk Products Pvt Ltd. Pearl Global Industries Limited Annual Report 2020-21 15 Notice (contd...) Mr. Abhishek Goyal is Chairman of Nomination and Remuneration Committee and Member of Audit Committee and Risk Management Committee of the Company. The Board considers that his association would be of immense benefit to the Company, and it is desirable to avail services of Mr. Abhishek Goyal as Non-Executive Independent Director in the second term of five consecutive years. Accordingly, the Board recommends the resolution in relation to appointment of Mr. Abhishek Goyal as Non- Executive Independent Director in the second term of five consecutive years with effect from May 26, 2022, for the approval by the members of the Company. Additional information in respect to Mr. Abhishek Goyal, pursuant to Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Secretarial Standard 2 is annexed as Annexue-1 to this Notice. None of the Directors and Key Managerial Personnel of the Company, or their relatives, except Mr. Abhishek Goyal, himself is interested, financially or otherwise, in this Resolution. Your Directors recommend the passing of the resolution at Item no.5 as a Special Resolution. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 6: . 6: . 6: . 6: . 6: Mrs. Shifalli Seth was re-appointed as Whole-Time Director of the Company for a period of three years, commencing from January 19, 2018 to January 18, 2021, by the members in their 29th Annual General Meeting held on September 24, 2018. The Board of Directors on the recommendation of Nomination and Remuneration Committee, at their meetings held on November 12, 2020, has approved the re- appointment of Mrs. Shifalli Seth as Whole-Time Director for a further period of three years and payment of remuneration, commencing from January 19, 2021. The Nomination and Remuneration Committee and the Board of Directors of the Company are of the opinion that she is fit and proper person to hold the said office and her re- appointment will be in the interest of the Company. Mrs. Shifalli Seth aged about 40 years, is a Bachelor of Science in Business Administration from University of Bradford, U.K., has varied exposure in Garments and Textiles Industry. She is heading Design & Product Development functions of the Company. She is having international experience in trading, marketing of Readymade Garments and knowledge of Southeast Asia region. She is wife of Mr. Pulkit Seth, Vice-Chairman and Managing Director of your Company. She holds membership in finance committee of the Company. Details of other directorship held by her in other Companies are as follows: Directorship (excluding foreign companies) (i) Pearl Global Kaushal Vikas Limited (ii) PS Arts Private Limited (iii) SBUYS E-Commerce Limited She is Designated Partner in PSS Estates LLP. Shareholders’ approval is sought for re- appointment of Mrs. Shifalli Seth as Whole-Time Director of the Company. The re-appointment and Remuneration payable to Mrs. Shifalli Seth 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 statement may be treated as a written memorandum setting out terms of re-appointment of Mrs. Shifalli Seth under Section 190 of the Companies Act, 2013. Additional information in respect to Mrs. Shifalli Seth, pursuant to Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Secretarial Standard 2 is annexed as Annexue-1 to this Notice. None of the Directors and Key Managerial Personnel, except Mrs. Shifalli Seth, herself, Mr. Deepak Seth, and Mr. Pulkit Seth being relatives, are interested, financially or otherwise, in this Resolution. Your Directors recommend the passing of the resolution at Item no. 6 as a Special Resolution. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 7 & 8: . 7 & 8: . 7 & 8: . 7 & 8: . 7 & 8: The Board of Directors on the recommendation of Nomination and Remuneration Committee, at their meetings held on August 14, 2021, has approved, and recommended for appointment of Mr. Pallab Banerjee as Director and Whole-Time Director to be designated as Joint Managing Director and payment of remuneration for a period of three years, commencing from October 1, 2021. Mr. Pallab Banerjee, aged about 53 years, holds B. Sc (Hons) degree and Post Graduate in Apparel Manufacturing and Marketing from NIFT and Financial Management from eCornell and having more than 29 years of experience in the field of apparel manufacturing and marketing. 16 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) He has been associated with the Company as Group President. Before joining the Company, he was Vice President- Global Sourcing (Wovens) in GAP and Managing Director in GAP International Sourcing (India) Private Limited. Pallab Banerjee as Director and Whole-Time Director of the Company. The appointment and Remuneration payable to Mr. Pallab Banerjee is within the limits provided under Section 196, 197 and 203 read with Schedule V and other applicable provisions of the Companies Act, 2013. He does not hold any directorship and membership in any other Company. The Company has received necessary notice from a member under Section 160(1) of the Companies Act, 2013, proposing his candidature for appointment as Director of the Company. Mr. Pallab Banerjee fulfills the criteria to appoint as Director and Whole-Time Director as prescribed under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.The Nomination and Remuneration Committee and the Board of Directors of the Company are of the opinion that he is fit and proper person to hold the said office and his appointment will be in the interest of the Company. Shareholders’ approval is sought for appointment of Mr. The terms as set out in the resolution and explanatory statement may be treated as a written memorandum setting out terms of appointment of Mr. Pallab Banerjee under Section 190 of the Companies Act, 2013. Additional information in respect to Mr. Pallab Banerjee, pursuant to Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Secretarial Standard 2 is annexed as Annexue-1 to this Notice. Your Directors recommend the passing of the resolution at Item no. 7 as an Ordinary Resolution and Item no. 8 as a Special Resolution. None of the Directors and Key Managerial Personnel are interested, financially or otherwise, in this Resolution. 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. In case of new companies, expected date 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. 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, 1987. Not Applicable The gross income of the Company stood at ` 795.48 Crore as on March 31, 2021. The Loss before Tax for the year 2020-21 is ` 9.19 Crore as against profit of ` 10.90 Crore for the year 2019-20. The Company’s PAT stood at ` 0.77 Crore during the year 2020-21. Notice (contd...) 5. Foreign investments or collaborators, if any Pearl Global Industries Limited Annual Report 2020-21 17 Apart from holding 33,56,112 equity shares of ` 10/- each of your Company by 77 NRI/FPI/ Members/Folios representing approx 15.49% of the total paid up Capital of the Company as on 31st March, 2021, there is no other foreign investment in the Company. 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 2. Past Remuneration 3. Recognition or Awards Job Profile and their 4. Suitability 5. Remuneration Proposed 6. Comparative 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 MMMMMrsrsrsrsrs. Sh. Sh. Sh. Sh. Shifififififaaaaalllllllllli Si Si Si Si Setetetetethhhhh MMMMMrrrrr. P. P. P. P. Paaaaallllllllllab Bab Bab Bab Bab Baaaaanenenenenerrrrrjjjjjeeeeeeeeee Mrs. Shifalli Seth aged about 40 years, a Bachelor of in Business Science Administration from University of Bradford, U. K., 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. Mr. Pallab Banerjee, aged about 53 years, holds B.Sc (Hons) degree and Post Graduate in Apparel Manufacturing and Marketing from NIFT and Financial Management from eCornell and having more than 29 years of experience in the field of apparel manufacturing and marketing. He was Vice President- Global Sourcing (Wovens) in GAP and Managing Director in GAP International Sourcing (India) Private Limited. ` 6.25 Lakh Per Month N.A. N.A. N.A. Mrs. Shifalli Seth, Whole-Time Director shall be responsible for product design and development functions of the Company and also perform such other duties and services as shall from time to time be entrusted to her by the Board of Directors of the Company. Mr. Pallab Banerjee shall perform such duties and services as shall from time to time be entrusted to her by the Board of Directors of the Company. Details of proposed remuneration is provided in the AGM Notice. Considering the turnover of the Company and the experience and responsibilities of Mrs. Shifalli Seth the remuneration being proposed to be paid to her is reasonable and in line with remuneration levels in the industry. Considering the turnover of the Company and the experience and responsibilities of Mr. Pallab Banerjee the remuneration being proposed to be paid to him is reasonable and in line with remuneration levels in the industry. NIL Relating to Pecuniary Relationship, information provided under Past and proposed Remuneration hereinabove. Mrs. Shifalli Seth is related to Mr. Deepak Seth, and Mr. Pulkit Seth. She holds 2,01,478 Equity Shares of the Company 18 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) 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 Covid 19 pandemic. 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 2020-21 was ` 795.48 and profits in measurable terms Crore. The Company‘s PAT stood at ` 0.77 Crore during 2020-21. 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. IIIIIVVVVV..... DDDDDIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEESSSSS::::: Disclosures in the Board of Directors’ report under the heading ‘Corporate Governance’ included in Annual Report 2020-21: The requisite details of remuneration etc. of Directors are included in the Corporate Governance Report, forming part of the Annual Report of FY 2020-21 of the Company. The Company has no policy for stock option, pension, and performance linked incentives. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 9: . 9: . 9: . 9: . 9: The provisions of section 188(1)(f ) of the Companies Act, 2013, that govern the related party transactions require a Company to obtain prior approval of the Audit Committee, Board of Directors and shareholders for the related party’s appointment to any office or place of profit. The Board of Directors of the Company on the recommendation of the Audit Committee, at their meetings held on August 14, 2021, has approved the appointment of Mr. Pulkit Seth as Chief Executive Officer of branch office of the Company in USA, subject to approval of the Shareholders by way of an Ordinary Resolution. The details of the remuneration payable to Mr. Pulkit Seth is given in the resolution no. 9. As per section 188(1)(f ) of the Companies Act, 2013. None of the Directors and Key Managerial Personnel, except Mr. Pulkit Seth, himself, Mr. Deepak Seth and Mrs. Shifalli Seth, being relatives, are interested, financially or otherwise, in this Resolution Your Directors recommend the passing of the resolution at Item no.9 as a Special Resolution. IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 10: . 10: . 10: . 10: . 10: The Members of the Company at their 31st Annual General Meeting held on November 26, 2020, were approved related party transactions for the financial year 2021-22. The Board of Directors considered that the value of transaction to be entered with Pearl Global (HK) Limited, wholly owned subsidiary of the Company may exceed the maximum value as approved by the members for the financial year 2021-22. Hence, the Audit Committee and Board of Directors of the Company have, in their meetings held on August 14, 2021, approved a proposal with revised value of transactions with Pearl Global (HK) Limited as mentioned in the resolution, for the financial year 2021-22. None of the Directors and Key Managerial Personnel, except Mr. Pulkit Seth, Managing Director, Mr. Deepak Seth, Chairman and Mrs. Shifalli Seth, Whole-Time Director, are interested, financially or otherwise, in this Resolution..... Your Directors recommend the passing of the resolution at Item no.10 as an Ordinary Resolution. Pearl Global Industries Limited Annual Report 2020-21 19 Notice (contd...) IIIIIttttteeeeem Nm Nm Nm Nm Nooooo. 11: . 11: . 11: . 11: . 11: The Audit Committee and Board of Directors of the Company have, in their meetings held on August 14, 2021, approved a proposal for entering into the following related party transactions for the financial year 2022-23: 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 1. Norp Knit Industries Limited 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 ho is relelelelelaaaaattttteeeeeddddd, if a , if a , if a , if annnnnyyyyy wwwwwho is r ho is r ho 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 5. DSSP Global Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact sact sact sactioioioioionnnnnsssss 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 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) 100.00 25.00 0.25 12.00 1.00 3.00 15.00 1.00 0.10 2.00 2.00 10.00 400.00 1.50 7.50 30.00 15.00 10.00 60.00 0.50 2.50 1.00 1.50 10.00 10.00 0.10 1.00 1.00 20 Pearl Global Industries Limited Annual Report 2020-21 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 sactioioioioionnnnnsssss NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact sact sact sact 6. PDS Multinational Fashions Limited 7. Pearl Grass Creations Limited Enterprise over Mr. Deepak Seth KMP has significant influence Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth Mrs. Shifalli Seth 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 8. Prudent Fashions Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth Sale of Goods Sale of Samples 9. 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 10. Pearl Global F.Z.E Step down subsidiary Mr. Deepak Seth Sale of Goods Sale of Samples SAP Facilities Charges Expenses incurred by them on our behalf Expenses paid by us on their behalf 11. PGIC Investment Limited Step down subsidiary Mr. Deepak Seth Mr. Pulkit Seth 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) 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 1.00 1.00 0.10 1.00 1.00 1.00 1.00 0.10 1.00 1.00 Pearl Global Industries Limited Annual Report 2020-21 21 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 sactioioioioionnnnnsssss NNNNNaaaaatttttuuuuurrrrre of Te of Te of Te of Te of Trrrrraaaaannnnnsact sact sact sact 12. Pearl Global Vietnam Co. Limited Step down subsidiary Mr. Pulkit Seth 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) 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.11 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: August 14, 2021 By order of the Board of Directors for PPPPPeaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy 22 Pearl Global Industries Limited Annual Report 2020-21 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 RG RG RG RG 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: Mrrrrr. D. D. D. D. Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Seteteteteth (Dh (Dh (Dh (Dh (DIIIIIN: 00003021) N: 00003021) N: 00003021) N: 00003021) N: 00003021) Age Qualifications Experience (including expertise in specific functional area)/Brief resume : 70 Years : Master of Business Administration (MBA) and B.A. (Economics) : Mr. Deepak Seth is an active member of the Apparel Export Promotion Council of India (“AEPC”) and has held the post of “Vice Chairman” of the Eastern Region of AEPC for 2 years. He is also an executive member of the Apparel Exporters & Manufacturers Association (AEMA) and was awarded the “Udyog Ratna” Award by the Haryana Govt. in 2006 for his entrepreneurial skills. His knowledge of the business environment and vast experience in general management has been an asset to the Company. Date of first appointment on the Board : 22-03-1994 Shareholding in the Company as on 31st March, 2021 Directorships and Committee memberships held in other companies as on 31st March, 2021 : 28,62,145 Equity Shares : DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip (p (p (p (p (exexexexexclclclclcludududududiiiiinnnnng Fg Fg Fg Fg Fooooorrrrreigeigeigeigeignnnnn MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in cn cn cn cn cooooommmmmmmmmmitititititttttteeeeeeseseseses ies/Booooodddddies Co ies Co ies Co ies Corprprprprpooooorrrrraaaaattttte)e)e)e)e) CoCoCoCoCommmmmpppppaaaaannnnnies/B ies/B ies/B ies Co ies/B Member of Audit Committee and Stakeholders Relationship Committee in PDS Multinational Fashions Limited PDS Multinational Fashions Limited SBUYS E-Commerce Limited PS Arts Private Limited Pearl Global Kaushal Vikas Limited Digital Ecom Techno Private Limited Technocian Fashions Private Limited : Father of Mr. Pulkit Seth; and Father in-Law of Mrs. Shifalli Seth : 5 : All terms and conditions of appointment as per applicable polices of the Company. As a Director he is liable to retire by rotation. : Not Applicable Inter-se relationships between Directors, Manager and other Key Managerial Personnel No. of Board Meetings attended during the Financial year 2020-21 Terms and conditions of re-appointment Details of last drawn remuneration and proposed remuneration IIIIIttttteeeeem nom nom nom nom no. 3: M. 3: M. 3: M. 3: M. 3: Mrrrrr. P. P. P. P. Puuuuulllllkkkkkit Sit Sit Sit Sit Seteteteteth (Dh (Dh (Dh (Dh (DIIIIIN: 00003044) N: 00003044) N: 00003044) N: 00003044) N: 00003044) Age Qualifications : 41 Years : Bachelor of Business Management degree from Leonard N. Stern School of Business, University of New York, USA Pearl Global Industries Limited Annual Report 2020-21 23 Notice (contd...) Experience (including expertise in specific functional area) / Brief resume : He has over seventeen years of experience in the Apparel Industry. He has been overseeing the domestic & overseas operations of the Group and has played an important role in streamlining business processes and enhancing our relationship with leading retailers in the U.S. Date of first appointment on the Board : 01-11-2004 Shareholding in the Company as on 31st March, 2021 Directorships and Committee memberships held in other companies as on 31st March, 2021 : 69,47,621 Equity Shares : DiDiDiDiDirrrrreeeeectctctctctooooorshrshrshrshrshiiiiip (p (p (p (p (exexexexexclclclclcludududududiiiiinnnnng Fg Fg Fg Fg Fooooorrrrreigeigeigeigeignnnnn MMMMMeeeeembmbmbmbmbeeeeershrshrshrshrshiiiiip ip ip ip ip in cn cn cn cn cooooommmmmmmmmmitititititttttteeeeeeseseseses 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 2020-21 Terms and conditions of re-appointment Details of last drawn remuneration and proposed remuneration SBUYS E-Commerce Limited PS Arts Private Limited Pearl Global Kaushal Vikas Limited : Son of Mr. Deepak Seth, Chairman; and NIL Husband of Mrs. Shifalli Seth, Whole-Time Director : 5 : All terms and conditions of appointment as per applicable polices of the Company. As a Director he is liable to retire by rotation. : He is getting remuneration of ` 15 Lakh per month in the capacity of Managing Director. Mr. Deepak Seth and Mr. Pulkit Seth, the retiring Director, being eligible, offers themselves for re-appointment. The Board of Directors of your Company propose to appoint Mr. Deepak Seth and Mr. Pulkit 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 Mr. Deepak Seth, Mr. Pulkit Seth, themselves and Mrs. Shifalli Seth, being relative, are interested, financially or otherwise, in this Resolution. Your Directors recommend the passing of the resolutions at Item no. 2 and 3 as an Ordinary Resolution. IIIIIttttteeeeem nom nom nom nom no. 4: M. 4: M. 4: M. 4: M. 4: Msssss. N. N. N. N. Neheheheheha Kh a Kha Khaaaaannnnnnnnnna (Da (Da (Da (Da (DIIIIIN: 03477800) N: 03477800) N: 03477800) a Kha Kh N: 03477800) N: 03477800) Age Qualifications Experience (including expertise in specific functional area) / Brief resume Date of first appointment on the Board : 21-06-2021 Shareholding in the Company as on 31st March, 2021 Directorships and Committee memberships held in other companies as on 31st March, 2021 Inter-se relationships between Directors, Manager and other Key Managerial Personnel : None : NIL : 33 Years : B.Com, CA and MBA : Ms. Neha Khanna possesses experience in the field of investment banking, financial advisory, internal audit and risk management. : Same as disclosed in explanatory statements. 24 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) No. of Board Meetings attended during the financial year 2020-21 Terms and conditions of appointment Details of last drawn remuneration and proposed remuneration : Not applicable : Ms. Neha Khanna will be appointed as Non-Executive Independent Director for a period of five consecutive years. : No remuneration except sitting fee for attending meeting of the Board, will be paid to Ms. Neha Khanna, as may be decided by the Board of Directors from time to time. ishek Goooooyyyyyaaaaal (Dl (Dl (Dl (Dl (DIIIIIN: 01928855) IIIIIttttteeeeem nom nom nom nom no. 5: M. 5: M. 5: M. 5: M. 5: Mrrrrr. A. A. A. A. Abbbbbhhhhhishek G N: 01928855) N: 01928855) ishek G ishek G N: 01928855) N: 01928855) ishek G : 40 Years Age Qualifications : Graduate in Finance and Economics from The University of Virginia. Experience (including expertise in specific functional area)/Brief resume Mr. Abhishek Goyal worked with Andor Capital Management ($11B AUM : Long/Short Equity Fund) in Manhattan (between 2002-2008), as Senior Analyst, covering technology companies with a focus on hardware and software. He then moved to Hong Kong (2008 - 2009) to start Andor’s office there and invest in Asian companies. In 2009, he joined White Elm Capital, as Senior Analyst and managed a $80M India-focused portfolio. In 2013, he co-founded OnCourse Vantage Pvt Ltd. OnCourse is India’s foremost creative and alternate education company. The mission of the company is to bridge the gap between formal classroom education and real- world skills, by offering a plethora of institutional and non-institutional programs to help develop life-skills along with assisting students who are looking for a world-class education abroad. : NIL : Same as disclosed in explanatory statements. Date of first appointment on the Board : 26-05-2017 Shareholding in the Company as on 31st March, 2021 Directorships and Committee memberships held in other companies as on 31st March, 2021 Inter-se relationships between Directors, Manager and other Key Managerial Personnel No. of Board Meetings attended during the Financial year 2020-21 Terms and conditions of re-appointment : Mr. Abhishek Goyal will be re-appointed as Non-Executive Independent : None : 5 Details of last drawn remuneration and proposed remuneration : No remuneration except sitting fee for attending meeting of the Board, is being paid and will be paid to Mr. Abhishek Goyal, as may be decided by the Board of Directors from time to time. Director for a period of five consecutive years. Pearl Global Industries Limited Annual Report 2020-21 25 Notice (contd...) IIIIIttttteeeeem nom nom nom nom no. 6: M. 6: M. 6: M. 6: M. 6: 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 : 40 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 heading Design & Product Development functions of the Company. She is having international experience in trading, marketing of Readymade Garments and knowledge of Southeast Asia region. : 201478 equity shares : She does not hold directorship in any other listed entity. Details of other directorship and membership held is disclosed in explanatory statements. Date of first appointment on the Board : 19-01-2012 Shareholding in the Company as on 31st March, 2021 Directorships and Committee memberships held in other companies as on 31st March, 2021 Inter-se relationships between Directors, Manager and other Key Managerial Personnel No. of Board Meetings attended during the Financial year 2020-21 Terms and conditions of re-appointment : As per resolution no.6 of the Notice convening this meeting read with explanatory statements thereto, Mrs. Shifalli Seth is proposed to be re- appointed as Whole-Time Director for a period of Three (3) years w.e.f. January 19, 2021. : She is wife of Mr. Pulkit Seth, Vice-Chairman and Managing Director of your Company. : 2 Details of last drawn remuneration and proposed remuneration : Last drawn remuneration: ` 6.25 Lakh per month. Proposed remuneration: ` 6.25 Lakh per month. IIIIIttttteeeeem nom nom nom nom no. 7 & 8: M . 7 & 8: M . 7 & 8: M . 7 & 8: Mrrrrr. P. P. P. P. Paaaaallllllllllab Bab Bab Bab Bab Baaaaanenenenenerrrrrjjjjjeeeeee (De (De (De (De (DIIIIIN: 01388430) N: 01388430) N: 01388430) N: 01388430) . 7 & 8: M N: 01388430) Age Qualifications Experience (including expertise in specific functional area)/Brief resume : 53 Years : B.Sc (Hons), Post Graduate in Apparel Manufacturing and Marketing from NIFT and Financial Management from eCornell. : He has more than 29 years of experience in the field of apparel manufacturing and marketing. He was Vice President-Global Sourcing (Wovens) in GAP and Managing Director in GAP International Sourcing (India) Private Limited. : 400 Equity Shares Date of first appointment on the Board : Not Applicable Shareholding in the Company as on 31st March, 2021 Directorships and Committee memberships held in other companies as on 31st March, 2021 Inter-se relationships between Directors, Manager and other Key Managerial Personnel : None : He does not hold directorship in any other Company. 26 Pearl Global Industries Limited Annual Report 2020-21 Notice (contd...) No. of Board Meetings attended during the Financial year 2020-21 Terms and conditions of appointment : Not Applicable : As per the resolution at Item No.7 of the Notice convening this meeting read with explanatory statement thereto, Mr. Pallab Banerjee is proposed to be appointed as Director liable to retire by rotation. Further, as per the resolution at Item No. 8 of the Notice convening this meeting read with explanatory statement thereto, Mr. Pallab Banerjee is proposed to be appointed as Whole-Time Director, to be designated as Joint Managing Director for a period of Three (3) years w.e.f. October 1, 2021. Details of last drawn remuneration and proposed remuneration : Last drawn remuneration: Nil Proposed remuneration: ` 2.75 crore per annum. Place: Gurugram Date: August 14, 2021 By order of the Board of Directors for PPPPPeaeaeaeaearrrrrl Glo l Glo l Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) CoCoCoCoCommmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy Pearl Global Industries Limited Annual Report 2020-21 27 Directors’ Report To the Members, Your Directors are pleased to present the 32nd Annual Report and Audited Financial Statements for the financial year ended 31st March 2021, 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 PPPPPrrrrrofit b ofit b ofit b ofit befoefoefoefoeforrrrre Te Te Te Te Taaaaaxxxxx ofit b Provision for Tax PPPPPrrrrrofit Aofit Aofit Aofit Aofit Afffffttttteeeeer Tr Tr Tr Tr Taaaaaxxxxx Other comprehensive income TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe 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 ` 1,49,092.65 Lakh as against ` 1,68,512.58 Lakh in the previous year and Net Profit of ` 1,748.32 Lakh as against Net Profit of ` 2,172.83 Lakh in the previous year. The income from operations for the year under review for the Company on Standalone basis was ` 77,140.04 Lakh as compared to ` 82,533.33 Lakh in the previous year and Net Profit of ` 77.40 Lakh as compared to Net Profit of ` 500.89 Lakh 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 (` in Lakh) SSSSStttttaaaaandndndndndaaaaalololololonenenenene CoCoCoCoConnnnnsososososolllllidididididaaaaattttteeeeeddddd 2020-21 2020-21 2020-21 2020-21 2020-21 77,140.04 2,408.39 (919.52) (919.52) (919.52) (919.52) (919.52) (996.92) 77.40 77.40 77.40 77.40 77.40 706.70 784.10 784.10 784.10 784.10 784.10 2019-20 2019-20 2020-21 2020-21 2019-20 2019-20 2019-20 2020-21 2019-20 2019-20 2019-20 2019-20 2020-21 2020-21 2019-20 82,533.33 1,49,092.65 1,68,512.58 4,905.49 2,350.49 3,338.77 1,090.51 1,090.51 1,135.56 1,135.56 3,123.41 3,123.41 1,090.51 1,135.56 3,123.41 1,090.51 1,090.51 1,135.56 1,135.56 3,123.41 3,123.41 950.58 (612.76) 589.62 500.89 500.89 1,748.32 1,748.32 2,172.83 2,172.83 500.89 1,748.32 2,172.83 500.89 500.89 1,748.32 1,748.32 2,172.83 2,172.83 2,173.90 (86.91) (557.31) (56.42) (56.42) 1,661.41 1,661.41 4,346.73 4,346.73 (56.42) 1,661.41 4,346.73 (56.42) (56.42) 1,661.41 1,661.41 4,346.73 4,346.73 States and Europe. 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, next, Old Navy, MUJI, Bass Pro Shops, Belk, Ross, ZARA, Bershka, American Eagle Outfitters, Joe Fresh, Walmart Canada, NORDSTROM, Kroger, PVH, TOMMY HILFIGER, Calvin Klein, CHAPS, PRIMARK, Sainsbury’s, MANGO, TALBOTS, TARGET, Kmart, MARKS & SPENCER, LANE BRYANT, LOFT, ANN TAYOR, Brooks Brothers, Quince 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. -19 PAAAAANNNNNDDDDDEEEEEMMMMMIIIIICCCCC -19 P MMMMMAAAAATTTTTEEEEERRRRRIIIIIAAAAAL IL IL IL IL IMMMMMPPPPPAAAAACCCCCT OT OT OT OT OF CF CF CF CF COVOVOVOVOVIIIIIDDDDD-19 P -19 P -19 P OOOOON CN CN CN CN COOOOOMMMMMPPPPPAAAAANNNNNYYYYY Due to the outbreak of COVID-19 Pandemic and subsequent lockdown ordered by the Central and State Government(s) in India, the manufacturing facilities of the Company remained suspended during the period of 28 Pearl Global Industries Limited Annual Report 2020-21 Directors’ Report (contd...) lockdown. The Company in compliance with necessary instructions and guidelines, resumed its operations post lifting of lockdown in a phased manner, while ensuring health and safety of all the stakeholders. This situation resulted in temporary disturbance in the economic activities through interruption in manufacturing processes, supply chain etc. during the year ended March 31, 2021. Further, the recent second wave of COVID-19 has resulted in partial lockdown/ restriction in various states. The impact of the pandemic is dependent on the situations as they evolve and hence may be different from that estimated as at the date of approval of these standalone and consolidated financial results. The Company is closely monitoring the impact of the aforesaid pandemic and believes that there will not be any adverse impact on the long term operations and performance of the Company. DDDDDIIIIIVVVVVIIIIIDDDDDEEEEENNNNNDDDDD The Board of Directors has not recommended any dividend for the financial year 2020-21. TTTTTRRRRRAAAAANSNSNSNSNSFEFEFEFEFER TR TR TR TR TO GO GO GO GO GEEEEENNNNNEEEEERRRRRAAAAAL RL RL RL RL REEEEESSSSSEEEEERRRRRVVVVVEEEEESSSSS The Board of Directors do not propose to transfer any amount to Reserve. DDDDD IIIII RRRRR E CE CE CE CE CTTTTTOOOOO RRRRR S A S ANNNNN D KD KD KD KD K EEEEEY MY MY MY MY MAAAAA NNNNNAAAAA GGGGG EEEEE RRRRR IIIIIAAAAA LLLLL S A S A S A PPPPPEEEEERRRRRSSSSSOOOOONNNNNNNNNNEEEEELLLLL CCCCChhhhhaaaaannnnnggggge ie ie ie ie in Di n Di n Di n Dirrrrreeeeectctctctctooooors drs drs drs drs duuuuurrrrriiiiinnnnng Fg Fg Fg Fg FY 2020-21 Y 2020-21 Y 2020-21 Y 2020-21 n Di Y 2020-21 During the year Mr. Vinod Vaish, Whole-Time Director has resigned from the Board of the Company with effect from April 30, 2020, due to personal reasons. Mr. Uma Shankar Kaushik and Mr. Shailesh Kumar have been appointed as Whole-Time Directors of the Company by the Board of Directors in their meetings held on July 28, 2020 and October 7, 2020, respectively. Their appointment have also been approved by the Shareholders in the 31st Annual General Meeting held on November 26, 2020. MMMMMrsrsrsrsrs. Sh. Sh. Sh. Sh. Shifififififaaaaalllllllllli Si Si Si Si Setetetetethhhhh The Board of Directors in its meeting held on November 12, 2020 have, on the recommendation of Nomination and Remuneration Committee, re-appointed Mrs. Shifalli Seth as Whole-Time Director for a further period of three years with effect from January 19, 2021, subject to approval of the shareholders in the ensuing Annual General Meeting. Resolution for re-appointment of Mrs. Shifalli Seth as Whole-Time Director is proposed in the Notice calling 32nd Annual General Meeting. Mrs. Shifalli Seth aged about 40 years, is a Bachelor of Science in Business Administration from University of Bradford, U.K., has varied exposure in Garments and Textiles Industry. She is heading Design & Product Development functions of the Company. She is having international experience in trading, marketing of Readymade Garments and knowledge of Southeast Asia region. a Kha Khaaaaannnnnnnnnnaaaaa a Kha Kh MMMMMsssss. N. N. N. N. Neheheheheha Kh The Board of Directors have, on the recommendation of Nomination and Remuneration Committee, appointed Ms. Neha Khanna as Additional Director (Non-Executive Independent Director) of the Company with effect from June 21, 2021, subject to approval of the shareholders in the ensuing Annual General Meeting. Resolution for appointment of Ms. Neha Khanna as Independent Director is proposed in the Notice calling 32nd Annual General Meeting. Ms. Neha Khanna is a qualified Chartered Accountant and holds B.Com degree from Shri Ram College of Commerce and MBA from Saïd Business School, University of Oxford. Ms. Neha Khanna possesses experience in the field of investment banking, financial advisory, internal audit and risk management. Presently she is Director in the ANG Group and advises early stage companies and SMEs on fund raising via ValPro, the investment banking and financial advisory firm of ANG. She co-founded Enablers, an extension of ValPro, focusing on startup fund raising and financial advisory services. She is committed to building an eco-system for accelerating the growth of start-ups and SMEs in India. MMMMMrrrrr. P. P. P. P. Paaaaallllllllllab Bab Bab Bab Bab Baaaaanenenenenerrrrrjjjjjeeeeeeeeee The Board of Directors on the recommendation of Nomination and Remuneration Committee, recommended for appointment of Mr. Pallab Banerjee as Director and Whole-Time Director to be designated as Joint Managing Director of the Company for a period of three years with effect from October 01, 2021. Resolution for appointment of Mr. Pallab Banerjee as Director and Joint Managing Director is proposed in the Notice calling 32nd Annual General Meeting. Mr. Pallab Banerjee, aged about 53 years, holds B.Sc (Hons) degree and Post Graduate in Apparel Manufacturing and Marketing from NIFT and Financial Management from eCornell and having more than 29 years of experience in the field of apparel manufacturing and marketing. He has served Pearl Global Industries Limited Annual Report 2020-21 29 Directors’ Report (contd...) as Vice President- Global Sourcing (Woven) in GAP and Managing Director in GAP International Sourcing (India) Private Limited. Before appointment as Joint Managing Director, Mr. Banerjee held the position as Group President in the Company. financial year 2020-21. In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of your Company, Mr. Deepak Seth and Mr. Pulkit Seth, Directors, would retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. ishek Goooooyyyyyaaaaalllll ishek G MMMMMrrrrr. A. A. A. A. Abbbbbhhhhhishek G ishek G ishek G l Officeeeeerrrrr l Offic ief Fief Fiiiiinnnnnaaaaancianciancianciancial Offic l Offic ief Fief F CCCCChhhhhaaaaannnnnggggge ie ie ie ie in Cn Cn Cn Cn Chhhhhief F l Offic The Board of Directors have, on the recommendation of Nomination and Remuneration Committee, re-appointed Mr. Abhishek Goyal as Independent Director of the Company in the second term for a period of five years with effect from May 26, 2022, subject to approval of the shareholders in the ensuing Annual General Meeting. Resolution for Re-appointment of Mr. Abhishek Goyal as Independent Director is proposed in the Notice calling 32nd Annual General Meeting. Mr. Abhishek Goyal, aged about 40 years, is graduated in Finance and Economics from The University of Virginia in 2002. He worked with Andor Capital Management ($11B AUM Long/Short Equity Fund) in Manhattan (between 2002- 2008), as Senior Analyst, covering technology companies with a focus on hardware and software. He then moved to Hong Kong (2008 - 2009) to start Andor’s office there and invest in Asian companies. In 2009, he joined White Elm Capital, as Senior Analyst and managed a $80M India-focused portfolio. In 2013, he co-founded OnCourse Vantage Pvt Ltd. OnCourse is India’s foremost creative and alternate education company. The mission of the company is to bridge the gap between formal classroom education and real-world skills, by offering a plethora of institutional and non- institutional programs to help develop life-skills along with assisting students who are looking for a world-class education abroad. 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. The Board of Directors of your Company met five times on July 28, 2020, September 14, 2020, October 7, 2020, November 12, 2020, and February 12, 2021 during the Mr. Kashmir Singh Rathour was appointed as Chief Financial Officer of the Company by the Board of Directors at its meeting held on July 28, 2020 in place of Mr. Raghav Garg, who resigned from the office of CFO of the Company with effect from June 30, 2020 due to his personal reasons. Mr. Kashmir Singh Rathour has resigned from the office of CFO of the Company with effect from April, 20, 2021 due to his personal reasons. The Board of Directors in its meeting held on June 21, 2021 have on the recommendation of Audit Committee and Nomination and Remuneration Committee appointed Mr. Narendra Kumar Somani as CFO of the Company with effect from June 21, 2021. Mr. Narendra Kumar Somani, aged about 51 years, holds B.Com and Chartered Accountants degree and having more than 26 years of 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. Mr. Somani has worked with Surya Roshni Ltd, SU-KAM Power Systems Ltd, Surya Manufacturing , Intex Technologies and as CFO of Modelama Exports. n Con Commmmmpppppaaaaannnnny Sy Sy Sy Sy Seeeeecccccrrrrretetetetetaaaaarrrrryyyyy n Con Co CCCCChhhhhaaaaannnnnggggge ie ie ie ie in Co Mr. Sandeep Sabharwal, Company Secretary of the Company has resigned from the office Company Secretary and Compliance Officer of the Company with effect from February 15, 2021 due to personal reasons. The Board of Directors in its meeting held on June 21,2021 have, on the recommendation of Nomination and Remuneration Committee appointed Mr. Mayank Jain as Company Secretary and Compliance Officer and Nodal Officer of the Company with effect from June 21,2021. Mr. Mayank Jain, aged about 38 years, having Associate Membership (ACS-26620) of Institute of Company Secretaries of India and B.Com degree from Shivaji College, Delhi University and L.L.B from CCS University. 30 Pearl Global Industries Limited Annual Report 2020-21 Directors’ Report (contd...) He has over 11 years of experience in Corporate Laws and Listing Regulations. As a Company Secretary, he has worked with Fortis Group, DXC Technology Co, CSC, Xchanging Solutions, The Hi-Tech Group, etc. 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 DDDDDIIIIINNNNN NNNNNaaaaam em em em em e DDDDDIIIIINNNNN Mr. Deepak Seth - 00003021 Mr. Chittranjan Dua - 00036080 Mr. Pulkit Seth - 00003044 Mr. Abhishek Goyal - 01928855 Mrs. Shifalli Seth - 01388430 Mr. Rajendra Kumar Aneja - 00731956 Ms. Neha Khanna - 03477800 Mr. Anil Nayar - 01390190 Mr. Uma Shankar Kaushik - 06867819 Mrs. Madhulika Bhupatkar - 08712718 Mr. Shailesh Kumar - 08897225 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 current composition of the Audit 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 a letter 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. During the year, no complaint is received. 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 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 2020-21. The prescribed CSR amount for the financial year 2020-21 was ` 22.26 Lakh. However, the company has spent ` 27.10 Lakh during the financial year 2020-21. Pearl Global Industries Limited Annual Report 2020-21 31 Directors’ Report (contd...) 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, no Company has become or ceased subsidiary, Joint Venture or Associate 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. 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’ Reports (Consolidated & Standalone) for the financial year ended 31st March, 2021 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 (Company Secretaries) to conduct Secretarial Audit for the financial year 2020-21. The Secretarial Audit Report for the financial year 2020-21 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 2020- 21. CCCCCOOOOOSSSSST AT AT AT AT AUUUUUDDDDDIIIIITTTTT Maintaining of cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013 is not applicable to your Company. AAAAANNNNNNNNNNUUUUUAAAAAL RL RL RL RL REEEEETTTTTUUUUURRRRRNNNNN the Companies Pursuant to the Section 92(3) of the Companies Act, 2013, read with (Management and Administration) Rules, 2014, Annual Return of the Company for the financial year 2020-21 in the prescribed Form MGT-7 is available on the website of the Company at http://www.pearlglobal.com/investors/annual-return. 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. Details of material related party transaction entered during the financial year by the Company is annexed in Form AOC-2 as AAAAAnnnnnnnnnneeeeexxxxxuuuuurrrrre-e-e-e-e-IIIIIVVVVV. Members may refer to Note 46 to the standalone financial statement which sets out related party disclosures pursuant to Ind AS-24. 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 forms part of the notes to the standalone financial statements. 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 Pursuant to Regulation 21 and other applicable Regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, the Board of Directors have in its meeting held on June 21, 2021, constituted Risk Management Committee with following members and approved the Risk Management Policy. 32 Pearl Global Industries Limited Annual Report 2020-21 Directors’ Report (contd...) NNNNNaaaaamememememe Mr. Pulkit Seth Mr. Abhishek Goyal Ms. Neha Khanna DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn Chairman Member Member The Risk Management Committee shall periodically review the Risk Management Policy so that the Management controls the risk through properly defined network. The Risk Management Committee shall provide oversight and will report to the Board of Directors. DDDDDIIIIIVVVVVIIIIIDDDDDEEEEENNNNND DD DD DD DD DIIIIISSSSSTTTTTRRRRRIIIIIBBBBBUUUUUTTTTTIIIIIOOOOON PN PN PN PN POOOOOLLLLLIIIIICCCCCYYYYY The Board of Directors have in its meeting held on June 21, 2021, approved the Dividend Distribution Policy as required under Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time. The Dividend Distribution Policy as approved may be accessed on the Company’s website at http://pearlglobal.com/ investors/policy 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) in the preparation of the annual accounts for the financial year ended 31st March 2021, 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, 2021 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; d) the Directors have prepared the annual accounts on a ‘going concern’ basis; to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and 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 2020-21 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 from the Practicing Company Secretary, 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-VVVVV to this report. e) the Directors have laid down internal financial controls Particulars of employees as required under Rule 5(2) and Pearl Global Industries Limited Annual Report 2020-21 33 Directors’ Report (contd...) (3) 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-VIVIVIVIVI to this report. 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. 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-VIIVIIVIIVIIVII to this report. TTTTTRRRRRAAAAANSNSNSNSNSFEFEFEFEFER TR TR TR TR TO IO IO IO IO INNNNNVVVVVEEEEESSSSSTTTTTOOOOOR ER ER ER ER EDDDDDUUUUUCCCCCAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNNDDDDD PPPPPRRRRROOOOOTTTTTECECECECECTTTTTIIIIIOOOOON FN FN FN FN FUUUUUNNNNNDDDDD The Company has transferred ` 1,79,912/- during the Financial Year 2020-21 to Investor Education and Protection Fund (IEPF) established by the Central Government, in compliance with the Companies Act, 2013. The above said amount represents unclaimed dividend for the year 2012- 13 which was lying with the Company for a period of seven years. Further, the Company has transferred 71,944 shares to Investor Education and Protection Fund Authority established by the Central Government, in compliance with the Companies Act, 2013. Any shareholder whose shares or unclaimed dividend have been transferred to the IEPF, may claim the shares under provision to Section 124(6) or apply for refund under Section 125(3) as the case may be, to the Authority by making an application in Web Form IEPF–5 available on website www.iepf.gov.in. DDDDDEEEEETTTTTAAAAAIIIIILLLLLS 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 REGEGEGEGEGUUUUULLLLL AAAAATTTTTOOOOORRRRR S OS OS OS OS ORRRRR CCCCCOOOOO UUUUURRRRRTS OTS OTS OTS OTS OR TR TR TR TR TRRRRR IIIIIBBBBBUUUUUNNNNNAAAAALLLLL 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 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. No complaint received during the financial year 2020-21. 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: August 14, 2021 (D(D(D(D(DEEEEEEEEEEPPPPPAAAAAK SK SK SK SK SEEEEETTTTTH)H)H)H)H) CCCCCHHHHHAAAAAIIIIIRRRRRMMMMMAAAAANNNNN N 00003021 N 00003021 DDDDDIIIIIN 00003021 N 00003021 N 00003021 34 Pearl Global Industries Limited Annual Report 2020-21 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 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. 2.4.4. 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. 2.5. SSSSS eeeeennnnn i oi oi oi oi or Mr Mr Mr Mr Maaaaannnnnaaaaa ggggg eeeeem em em em em ennnnnttttt means Senior 2.5. 2.5. 2.5. 2.5. Management means personnel of the company who are members of its core management team excluding the Board of Directors. 3.3.3.3.3. l of Dirrrrreeeeectctctctctooooorrrrr,,,,, l of Di 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 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 discretion to decide whether 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 justification extension of for 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 exceeding five years at a time. No re- appointment shall be made earlier than Pearl Global Industries Limited Annual Report 2020-21 35 Annexure-I to the Directors’ Report one year before the expiry of term. 3.4.3.4.3.4.3.4.3.4. RRRRReeeeemovmovmovmovmovaaaaalllll bbbbb))))) - - - 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). 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 tooooo rrrrr, 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, 36 Pearl Global Industries Limited Annual Report 2020-21 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. 4.2.4.2.4.2.4.2.4.2. RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion tn tn tn tn to Who o Wholelelelele-----tttttiiiiime / Ex 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. 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 Nooooo nnnnn- Ex - Exeeeee c uc uc uc uc uttttti vi vi vi vi ve /e /e /e /e / - Ex - Ex - Ex t Dirrrrreeeeectctctctctooooorrrrr::::: t Di IIIIIndendendendendepppppeeeeendendendendendennnnnt 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 Remuneration Committee meeting could be present at the Annual General Meeting or may Pearl Global Industries Limited Annual Report 2020-21 37 Annexure-I to the Directors’ Report nominate some other member to answer the shareholders’ queries. 11.411.411.411.411.4 Determining the appropriate size, diversity and composition of the Board; 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. 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. 9.9.9.9.9. SSSSSECECECECECRRRRREEEEETTTTTAAAAARRRRRYYYYY 12.12.12.12.12. RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON DN DN DN DN DUUUUUTTTTTIIIIIEEEEESSSSS 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: 11.11.11.11.11.1 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. 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. 38 Pearl Global Industries Limited Annual Report 2020-21 Annexure-II Annual Report on CSR activities he Commmmmpppppaaaaannnnnyyyyy::::: he Co he Co y of t ne of CSSSSSR PR PR PR PR Pooooolllllicicicicicy of t y of t ne of C ief out lt lt lt lt liiiiine of C ne of C ief ou 1.1.1.1.1. BBBBBrrrrrief ou ief ou y of the Co he Co y of t ne of C ief ou Pearl Global Industries Limited recognizes that its business activities have wide impact on the societies in which it operates, and therefore an effective practice is required giving due consideration to the interests of its stakeholders including shareholders, customers, employees, suppliers, business partners, local communities, and other organizations. The company endeavors to make CSR a key business process for sustainable development. 2.2.2.2.2. CoCoCoCoCommmmmpppppositositositositositioioioioion of Cn of Cn of Cn of Cn of CSSSSSR CoR CoR CoR CoR Commmmmmmmmmitititititttttteeeeeeeeee::::: SlSlSlSlSl..... NNNNNaaaaame of Di me of Dirrrrreeeeectctctctctooooorrrrr me of Di me of Di me of Di NNNNNooooo..... DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioion/n/n/n/n/ e of Dirrrrreeeeectctctctctooooorshrshrshrshrshiiiiippppp e of Di e of Di NNNNNaaaaatttttuuuuurrrrre of Di e of Di NNNNNuuuuumbmbmbmbmbeeeeer of r of r of r of r of NNNNNuuuuumbmbmbmbmbeeeeer of r of r of r of r of mememememeetetetetetiiiiinnnnngggggs of Cs of Cs of Cs of Cs of CSSSSSRRRRR mememememeetetetetetiiiiinnnnngggggs of Cs of Cs of Cs of Cs of CSSSSSRRRRR CoCoCoCoCommmmmmmmmmitititititttttteeeeee held e held e held e held e held ddddduuuuurrrrriiiiinnnnng tg tg tg tg the yea he yea he yea he yearrrrr he yea CoCoCoCoCommmmmmmmmmitititititttttteeeeeeeeee aaaaatttttttttteeeeendendendendended dd dd dd dd duuuuurrrrriiiiinnnnnggggg ttttthe yea he yea he yea he yearrrrr he yea 1 Mrs. Madhulika Bhupatkar Chairperson / Independent Director 2 Mr. Pulkit Seth 3 Mr. Anil Nayar Member / Executive Director Member / Independent Director 1 1 1 1 1 1 3.3.3.3.3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the website of the company. 4.4.4.4.4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable. http://www.pearlglobal.com/investors/policy/ Not Applicable 5.5.5.5.5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any FFFFFiiiiinnnnnaaaaancianciancianciancial Yl Yl Yl Yl Yeaeaeaeaearrrrr SlSlSlSlSl..... NNNNNooooo..... AAAAAmoumoumoumoumounnnnnt at at at at avvvvvaaaaailililililababababable fo le fo le fo r set r set r set-----offoffoffoffoff le for set le fo r set frfrfrfrfrooooom pm pm pm pm prrrrreeeeeccccceeeeedddddiiiiinnnnng fig fig fig fig finnnnnaaaaancianciancianciancial yea l yea l yea l yearsrsrsrsrs l yea (((((iiiiin n n n n `````))))) Not Applicable 6.6.6.6.6. Average net profit of the company as per section 135(5). 7.7.7.7.7. (a) Two percent of average net profit of the company as per section 135(5) (b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years. (c) Amount required to be set off or the financial year, if any (d) Total CSR obligation for the financial year (7a+7b-7c). off for tr tr tr tr the fi he fihe fi he fi he finnnnnaaaaancianciancianciancialllll AAAAAmoumoumoumoumounnnnnt rt rt rt rt reeeeeqqqqquuuuuiiiiirrrrreeeeed td td td td to bo bo bo bo be set e set e set off fo off fo e setoff fo e set off fo , if annnnny (y (y (y (y (iiiiin n n n n `````))))) yeayeayeayeayearrrrr, if a , if a , if a , if a ` 1,113.23 Lakh ` 22.26 Lakh Nil Nil ` 22.26 Lakh Pearl Global Industries Limited Annual Report 2020-21 39 Annexure-II Annual Report on CSR activities 8.8.8.8.8. (a) CSR amount spent or unspent for the financial year: AAAAAmoumoumoumoumounnnnnt Ut Ut Ut Ut Unnnnnssssspppppeeeeennnnnt (t (t (t (t (iiiiin n n n n `````/La/La/La/La/Lakkkkkhhhhh))))) TTTTTotototototaaaaal Al Al Al Al Amoumoumoumoumounnnnnt St St St St Spppppeeeeennnnnttttt fofofofofor tr tr tr tr the Fhe Fhe Fhe Fhe Fiiiiinnnnnaaaaancianciancianciancial Yl Yl Yl Yl Yeaeaeaeaearrrrr..... UUUUUnnnnnssssspppppeeeeennnnnt Ct Ct Ct Ct CSSSSSR AR AR AR AR Accccccccccououououounnnnnt at at at at asssss (((((iiiiin n n n n `````/La/La/La/La/Lakkkkkhhhhh))))) TTTTTotototototaaaaal Al Al Al Al Amoumoumoumoumounnnnnt tt tt tt tt trrrrraaaaannnnnsssssfefefefeferrrrrrrrrreeeeed td td td td tooooo pppppeeeeersersersersersectctctctctioioioioion 135(6) n 135(6) n 135(6) n 135(6) n 135(6) AAAAAmoumoumoumoumounnnnnt tt tt tt tt trrrrraaaaannnnnsssssfefefefeferrrrrrrrrreeeeed td td td td to ao ao ao ao annnnny fy fy fy fy fuuuuund snd snd snd snd spppppeeeeecifie cified ud ud ud ud undendendendenderrrrr cifie cifie cifie SSSSSchechechechecheddddduuuuule Vle Vle Vle Vle VIIIIII aI aI aI aI as ps ps ps ps peeeeer ser ser ser ser secccccooooond pnd pnd pnd pnd prrrrrovovovovoviso t iso tooooo iso t iso t iso t sesesesesectctctctctioioioioion 135(5) n 135(5) n 135(5) n 135(5) n 135(5) AAAAAmoumoumoumoumounnnnnttttt e of e of DDDDDaaaaattttte of e of e of tttttrrrrraaaaannnnnsssssfefefefeferrrrr NNNNNaaaaame ofme ofme ofme ofme of ttttthe Fhe Fhe Fhe Fhe Fuuuuundndndndnd AAAAAmoumoumoumoumounnnnnttttt e of e of DDDDDaaaaattttte of e of e of tttttrrrrraaaaannnnnsssssfefefefeferrrrr 27.10 NIL (b) Details of CSR amount spent against ongoing projects for the financial year: (1)(1)(1)(1)(1) SlSlSlSlSl..... NNNNNooooo..... (2)(2)(2)(2)(2) (3)(3)(3)(3)(3) (4)(4)(4)(4)(4) (5)(5)(5)(5)(5) (6)(6)(6)(6)(6) (7)(7)(7)(7)(7) (8)(8)(8)(8)(8) (9)(9)(9)(9)(9) (10) (10) (10) (10) (10) (11) (11) (11) (11) (11) NNNNNaaaaame ofme ofme ofme ofme of ttttthe Phe Phe Phe Phe Prrrrrojojojojojeeeeectctctctct IIIIIttttteeeeem frm frm frm frm frooooommmmm LLLLLooooocccccaaaaal al al al al arrrrreaeaeaeaea ttttthe lhe lhe lhe lhe lisisisisist of t of t of (((((YYYYYes/Nes/Nes/Nes/Nes/Nooooo))))) t of t of ies innnnn ies i ies i actactactactactivivivivivititititities i ies i SSSSSchechechechecheddddduuuuule Vle Vle Vle Vle VIIIIIIIIII ttttto to to to to the Ahe Ahe Ahe Ahe Actctctctct LLLLLooooocccccaaaaatttttioioioioion ofn ofn ofn ofn of ttttthe phe phe phe phe prrrrrojojojojojeeeeectctctctct AAAAAmoumoumoumoumounnnnnttttt tttttrrrrraaaaannnnnsssssfefefefeferrrrrrrrrreeeeeddddd ttttto Uo Uo Uo Uo Unnnnnssssspppppeeeeennnnnttttt CCCCC SSSSSRRRRR PPPPPrrrrrojojojojojeeeeectctctctct AAAAAmoumoumoumoumounnnnnttttt AAAAAmoumoumoumoumounnnnnttttt ssssspppppeeeeennnnnt it it it it innnnn ddddduuuuurrrrraaaaatttttioioioioionnnnn aaaaallllllololololocccccaaaaattttteeeeeddddd ttttth eh eh eh eh e fofofofofor tr tr tr tr th eh eh eh eh e c uc uc uc uc urrrrrrrrrreeeeennnnnttttt ppppprrrrrojojojojojeeeeectctctctct (((((iiiiin n n n n `))))) fififififinnnnnaaaaancianciancianciancialllll AAAAAcccccccccco uo uo uo uo unnnnnt fot fot fot fot forrrrr ttttthe phe phe phe phe prrrrrojojojojojeeeeectctctctct aaaaas ps ps ps ps peeeeerrrrr SSSSSeeeeectctctctctioioioioion 135 n 135 n 135 n 135 n 135 (6) (iiiiin n n n n `))))) (6) ( (6) ( (6) ( (6) ( YYYYYeaeaeaeaearrrrr (((((iiiiin n n n n `))))) SSSSStttttaaaaattttteeeee DisDisDisDisDistttttrrrrrictictictictict Not Applicable MMMMMooooode of de of de of de of de of IIIIImmmmmppppplelelelelem em em em em e----- nnnnntttttaaaaatttttioioioioionnnnn----- D iD iD iD iD irrrrreeeeectctctctct ((((( YYYYYes/Nes/Nes/Nes/Nes/Nooooo))))) MMMMMooooode of de of de of de of de of IIIIImmmmmppppplelelelelem em em em em ennnnntttttaaaaatttttioioioioion -n -n -n -n - TTTTThhhhhrrrrro uo uo uo uo uggggghhhhh IIIIImmmmmppppplelelelelem em em em em ennnnntttttiiiiinnnnnggggg A gA gA gA gA geeeeen cn cn cn cn cyyyyy NNNNNaaaaam em em em em e CCCCC SSSSSRRRRR RRRRReeeeegggggisisisisistttttrrrrraaaaatttttioioioioionnnnn nnnnnuuuuum bm bm bm bm beeeeerrrrr (c) Details of CSR amount spent against otototototheheheheher tr tr tr tr thhhhhaaaaan on on on on onnnnngggggoooooiiiiinnnnng pg pg pg pg prrrrrojojojojojeeeeectctctctcts s s s s for the financial year: (1)(1)(1)(1)(1) SlSlSlSlSl..... NNNNNooooo..... (2)(2)(2)(2)(2) NNNNNaaaaame ofme ofme ofme ofme of ttttthe Phe Phe Phe Phe Prrrrrojojojojojeeeeectctctctct (3)(3)(3)(3)(3) IIIIIttttteeeeem frm frm frm frm frooooom tm tm tm tm the lhe lhe lhe lhe lisisisisisttttt ies innnnn of activivivivivititititities i ies i ies i of act of act of act ies i of act SSSSSchechechechecheddddduuuuule Vle Vle Vle Vle VIIIIII tI tI tI tI tooooo ttttthe Ahe Ahe Ahe Ahe Actctctctct (4)(4)(4)(4)(4) LLLLLooooocccccaaaaalllllaaaaarrrrreaeaeaeaea (((((YYYYYes/Nes/Nes/Nes/Nes/Nooooo))))) (5)(5)(5)(5)(5) LLLLLooooocccccaaaaatttttioioioioion ofn ofn ofn ofn of ttttthe phe phe phe phe prrrrrojojojojojeeeeectctctctct (6)(6)(6)(6)(6) (7)(7)(7)(7)(7) AAAAAmoumoumoumoumounnnnnttttt MMMMMooooode of de of de of de of de of IIIIImmmmmppppplelelelelemememememennnnn----- ssssspppppeeeeennnnnt fot fot fot fot forrrrr tttttaaaaatttttioioioioionnnnn----- ttttthe phe phe phe phe prrrrrojojojojojeeeeectctctctct (((((iiiiin n n n n `///// DiDiDiDiDirrrrreeeeectctctctct (((((YYYYYes/Nes/Nes/Nes/Nes/Nooooo))))) LaLaLaLaLakkkkkhhhhh))))) (8)(8)(8)(8)(8) MMMMMooooode of I de of Immmmmppppplelelelelemememememennnnntttttaaaaatttttioioioioionnnnn----- de of I de of I de of I TTTTThhhhhrrrrrououououougggggh Ih Ih Ih Ih Immmmmppppplelelelelemememememennnnntttttiiiiinnnnnggggg AgAgAgAgAgeeeeencncncncncyyyyy CCCCCSSSSSR rR rR rR rR reeeeegggggisisisisistttttrrrrraaaaatttttioioioioionnnnn nnnnnuuuuum bm bm bm bm beeeeerrrrr CSR00008260 SSSSStttttaaaaattttteeeee DisDisDisDisDistttttrrrrrictictictictict NNNNNaaaaamememememe 1. Education Promoting Education Yes Delhi New Delhi 26.10 No 2. Health Promoting health care No Chand- igarh Chand- igarh 1.00 No (d) Amount spent in Administrative Overheads (e) Amount spent on Impact Assessment, if applicable (f ) Total amount spent for the Financial Year (8b+8c+8d+8e) Nil Nil 27.10 Arpan Educational Society for Underprivileged Children Veeranwali Foundation- Nanhi Jaan 40 Pearl Global Industries Limited Annual Report 2020-21 Annexure-II Annual Report on CSR activities (g) Excess amount for set off, if any PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs SlSlSlSlSl..... NNNNNooooo AAAAAmoumoumoumoumounnnnnttttt (((((iiiiin n n n n `````/La/La/La/La/Lakkkkkhhhhh))))) (i) Two percent of average net profit of the company as persection 135(5) (ii) Total amount spent for the Financial Year (iii) Excess amount spent for the financial year [(ii)-(i)] Not Applicable (iv) Surplus arising out of the CSR projects or programmes oractivities of the previous financial years, if any (v) Amount available for set off in succeeding financial years[(iii)-(iv)] 9.9.9.9.9. (a) Details of Unspent CSR amount for the preceding three financial years: SlSlSlSlSl..... NNNNNooooo..... PPPPPrrrrreeeeeccccceeeeedddddiiiiinnnnnggggg FFFFFiiiiinnnnnaaaaancianciancianciancial Yl Yl Yl Yl Yeaeaeaeaearrrrr AAAAAmoumoumoumoumounnnnnt tt tt tt tt trrrrraaaaannnnnsssssfefefefeferrrrrrrrrreeeeeddddd ttttto Uo Uo Uo Uo Unnnnnssssspppppeeeeennnnnt Ct Ct Ct Ct CSSSSSRRRRR AAAAAcccccccccco uo uo uo uo unnnnnt ut ut ut ut undendendendenderrrrr n 135 (6) n 135 (6) sesesesesectctctctctioioioioion 135 (6) n 135 (6) n 135 (6) (((((iiiiin n n n n `````))))) AAAAAmoumoumoumoumounnnnnttttt ssssspppppeeeeennnnnt it it it it innnnn ttttthe rhe rhe rhe rhe reeeeepppppooooorrrrrtttttiiiiinnnnnggggg FFFFFiiiiinnnnnaaaaancianciancianciancial Yl Yl Yl Yl Yeaeaeaeaearrrrr (((((iiiiin n n n n `````))))) AAAAAmoumoumoumoumounnnnnt tt tt tt tt trrrrraaaaannnnnsssssfefefefeferrrrrrrrrreeeeed td td td td to ao ao ao ao annnnny fy fy fy fy fuuuuundndndndnd cified ud ud ud ud undendendendender Sr Sr Sr Sr Schechechechecheddddduuuuule Vle Vle Vle Vle VIIIIII aI aI aI aI as ps ps ps ps peeeeerrrrr cifie cifie ssssspppppeeeeecifie cifie n 135(6), if annnnnyyyyy n 135(6), if a n 135(6), if a sesesesesectctctctctioioioioion 135(6), if a n 135(6), if a AAAAAmoumoumoumoumounnnnnt rt rt rt rt reeeeemmmmmaaaaaiiiiinnnnniiiiinnnnnggggg ttttto bo bo bo bo be se se se se spppppeeeeennnnnt it it it it innnnn sssssucucucucucccccceeeeeeeeeedddddiiiiinnnnnggggg l yearsrsrsrsrs l yea l yea fififififinnnnnaaaaancianciancianciancial yea l yea (((((iiiiin n n n n `````))))) NNNNNaaaaame ofme ofme ofme ofme of ttttthe Fhe Fhe Fhe Fhe Fuuuuundndndndnd AAAAAmoumoumoumoumounnnnnttttt (((((iiiiin n n n n `````))))) DDDDDaaaaattttte of e of e of e of e of tttttrrrrraaaaannnnnsssssfefefefeferrrrr NIL (b) Details of CSR amount spent in the financial year for ooooonnnnngggggoooooiiiiinnnnng pg pg pg pg prrrrrojojojojojeeeeectctctctcts s s s s of the preceding financial year(s): (9)(9)(9)(9)(9) (1)(1)(1)(1)(1) (6)(6)(6)(6)(6) (7)(7)(7)(7)(7) (8)(8)(8)(8)(8) (5)(5)(5)(5)(5) (2)(2)(2)(2)(2) (4)(4)(4)(4)(4) (3)(3)(3)(3)(3) SlSlSlSlSl..... NNNNNooooo..... PPPPPrrrrrojojojojojeeeeect Ict Ict Ict Ict IDDDDD NNNNNaaaaame ofme ofme ofme ofme of FFFFFiiiiinnnnnaaaaancianciancianciancial Yl Yl Yl Yl Yeaeaeaeaear ir ir ir ir innnnn ttttthe Phe Phe Phe Phe Prrrrrojojojojojeeeeectctctctct wwwwwhhhhhich t ich the phe phe phe phe prrrrrojojojojojeeeeectctctctct ddddduuuuurrrrraaaaatttttioioioioionnnnn ich t ich t ich t wwwwwaaaaas cs cs cs cs cooooommmmmmememememen cn cn cn cn ceeeeeddddd PPPPPrrrrrojojojojojeeeeectctctctct TTTTTotototototaaaaal al al al al amoumoumoumoumounnnnnttttt AAAAAmoumoumoumoumounnnnnt st st st st spppppeeeeennnnnttttt ooooon tn tn tn tn the phe phe phe phe prrrrrojojojojojeeeeectctctctct iiiiin tn tn tn tn the rhe rhe rhe rhe reeeeepppppooooorrrrrtttttiiiiinnnnnggggg FFFFFiiiiinnnnnaaaaancianciancianciancial Yl Yl Yl Yl Yeaeaeaeaearrrrr (((((iiiiin n n n n `````))))) aaaaallllllololololocccccaaaaattttteeeeed fod fod fod fod forrrrr ttttthe phe phe phe phe prrrrrojojojojojeeeeectctctctct (((((iiiiin n n n n `````))))) s of thehehehehe s of t s of t SSSSStttttaaaaatttttuuuuus of t s of t ppppprrrrrojojojojojeeeeectctctctct----- C oC oC oC oC ommmmmpppppletletletletleteeeeed/d/d/d/d/ OOOOOnnnnngggggoooooiiiiinnnnnggggg CCCCCuuuuummmmmuuuuulllllaaaaatttttiviviviviveeeee aaaaamoumoumoumoumounnnnnt st st st st spppppeeeeennnnntttttaaaaattttt nd of nd of ttttthe ehe ehe ehe ehe end of nd of nd of rrrrreeeeepppppooooorrrrrtttttiiiiinnnnnggggg FFFFFiiiiinnnnnaaaaancianciancianciancial Yl Yl Yl Yl Yeaeaeaeaearrrrr (((((iiiiin n n n n `````))))) Not Applicable 10.10.10.10.10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year (asset-wise details) (a) Date of creation or acquisition of the capital asset(s). (b) Amount of CSR spent for creation or acquisition of capital asset. (c) Details of the entity or public authority or beneficiary under whose name Not Applicable such capital asset is registered, their address etc. (d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset). 11.11.11.11.11. Specify the reason(s) if the company has failed to spend two per cent of the average net profit as per section 135(5). Not applicable, as the Company has spent more than the minimum prescribed amount for CSR activities. Place: Gurugram Date: August 14, 2021 (Pulkit Seth) Managing Director (Madhulika Bhupatkar) Chairman of CSR Committee Pearl Global Industries Limited Annual Report 2020-21 41 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, 2021 ch, 2021 ch, 2021 l yea he finnnnnaaaaancianciancianciancial yea l yea he fi FFFFFooooor tr tr tr tr the fi he fihe fi ch, 2021 ch, 2021 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 N: L74899D C036849 L1989P -17/1, Paaaaaschschschschschiiiiimmmmmi Mi Mi Mi Mi Maaaaargrgrgrgrg, V, V, V, V, Vaaaaasasasasasannnnnt Vt Vt Vt Vt Vihihihihihaaaaarrrrr,,,,, CCCCC-17/1, P -17/1, P -17/1, P -17/1, P NNNNNeeeeew Dw Dw Dw Dw Delelelelelhhhhhi - 110 057 i - 110 057 i - 110 057 i - 110 057 i - 110 057 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. dealing with client; (g) *The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (h) *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 Pearl Global Industries Limited’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, 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Board- processes and compliance mechanism in 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 their records maintained by Pearl Global Industries Limited (“the Company”) for the financial year ended on 31st March, 2021, according to the provisions of (hereinafter to be referred as “Act” collectively) (Many of the Records were examined online due to Covid 19): We have also examined compliance with the applicable Clauses / Regulations of the following: (f ) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and i. Secretarial Standards issued by The Institute of Company Secretaries of India. ii. The Listing Agreements entered into by the Company with 42 Pearl Global Industries Limited Annual Report 2020-21 Annexure-III to the Directors’ Report BSE and NSE Stock Exchange(s). 3.3.3.3.3. p Commmmmmmmmmitititititttttteeeeeeeeee::::: p Co SSSSStttttaaaaakkkkkehoehoehoehoeholdeldeldeldelders Rrs Rrs Rrs Rrs Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiip Co p Co p Co iii. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 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 disclosures from promoters as intimated to the Stock Exchanges under Regulation 30(1) and 30(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. • 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 various committee(s) as under: it Commmmmmmmmmitititititttttteeeeeeeeee::::: it Co 1.1.1.1.1. AAAAAudududududit Co it Co it Co Mr. Anil Nayar - Chairman Mr. Rajendra K. Aneja - Member Director Mr. Abhishek Goyal - Member Director Mrs. Madhulika Bhupatkar - Member Director 2.2.2.2.2. NNNNNooooommmmmiiiiinnnnnaaaaatttttioioioioion an an an an and Rnd Rnd Rnd Rnd Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion Con Con Con Con Commmmmmmmmmitititititttttteeeeeeeeee::::: Mr. Abhishek Goyal - Chairman Mr. Rajendra K. Aneja - Member Director Mr. Anil Nayar Mr. Pulkit Seth - Chairman - Member Director Mr. Rajendra K. Aneja - Member Director 4.4.4.4.4. CCCCCSSSSSR CoR CoR CoR CoR Commmmmmmmmmitititititttttteeeeeeeeee::::: Mrs. Madhulika Bhupatkar Mr. Pulkit Seth Mr. Anil Nayar - Chairperson - Member Director - Member Director 5.5.5.5.5. FFFFFiiiiinnnnnaaaaancncncncnce Co e Co e Co e Commmmmmmmmmitititititttttteeeeeeeeee e Co Mr. Pulkit Seth - Chairman Mrs. Shifalli Seth - Member Director Mr. Abhishek Goyal - Member Director 6.6.6.6.6. CoCoCoCoCommmmmpppppllllliaiaiaiaiancncncncnce Offic e Offic e Offic e Officeeeeerrrrr::::: e Offic Mr. Sandeep Sabharwal * *(Resigned from Services of the Company on 15th February 2021) • 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 2021 the Company has 19184893 shares in NSDL A/c, 2404154 shares in CDSL A/c and balance of 74890 are in physical mode. The Company’s shares in physical form are processed by the Registrar and Share Transfer Agent Link Intime India Pvt Ltd having office at Noble Heights, 1st Floor, NH 2 C-1 LSC, Near Shavitri Market, Janakpuri, New Delhi – 110 058, and approved by the Stakeholders Relationship Committee. Share transfer process also reviewed by the Board. Investor’s Grievance Report during the Financial year: No. of Grievances Received - 0 No. of Grievances Attended - 0 No. of Grievances Pending - 0 • As informed to us there is no change in general character or nature of business during year. • The Company has published quarterly results during the Mr. Anil Nayar - Member Director year in time. Mr. Deepak Seth - Member Director Various Committee meetings and meeting of Independent Directors: Audit Committee: Pearl Global Industries Limited Annual Report 2020-21 43 Annexure-III to the Directors’ Report AAAAAudududududit Co it Commmmmmmmmmitititititttttteeeeeeeeee::::: it Co it Co it Co e ofe of MMMMMeeeeeetetetetetiiiiinnnnnggggg e ofe of DDDDDaaaaattttte of DDDDDaaaaattttte of e ofe of e ofe of notnotnotnotnoticiciciciceeeee TTTTTotototototaaaaal Nl Nl Nl Nl Nooooo..... PPPPPlllllacacacacace of e ofe of e ofe of of membmbmbmbmbeeeeersrsrsrsrs of me of me MMMMMeeeeeetetetetetiiiiinnnnng/g/g/g/g/ of me of me e ofe of ooooon dn dn dn dn daaaaattttte of e ofe of VCVCVCVCVC 28.07.2020 14.09.2020 12.11.2020 12.02.2021 17.07.2020 04.09.2020 02.11.2020 01.02.2021 VC VC VC VC 4 4 4 4 LLLLLeaeaeaeaeavvvvve of e ofe of e ofe of AAAAAbsebsebsebsebsencncncncnceeeee GrGrGrGrGraaaaannnnnttttteeeeeddddd mememememeetetetetetiiiiinnnnnggggg nil nil nil nil TTTTTotototototaaaaal Nl Nl Nl Nl Nooooo..... of membmbmbmbmbeeeeersrsrsrsrs of me of me of me of me PPPPPrrrrreseeseeseeseesennnnnttttt CCCCChhhhhaaaaaiiiiirrrrrmmmmmaaaaannnnn of tof tof tof tof thehehehehe MMMMMeeeeeetetetetetiiiiinnnnnggggg 4 4 4 4 Mr. Anil Nayar Mr. Anil Nayar Mr. Anil Nayar Mr. Anil Nayar The Company has also maintained the proper record of the minutes of the meetings. Stakeholders Relationship Committee: During the Financial Year 2020-21 the committee met on 28.10.2020, 09.12.2020, and 21.12.2020. The Company has also maintained the proper record of the minutes of the meetings. FFFFFiiiiinnnnnaaaaancncncncnce Co e Co e Co e Commmmmmmmmmitititititttttteeeeeeeeee::::: e Co The Committee met on 27.04.2020, 30.07.2020, 12.10.2020, 11.12.2020, 22.01.2021, 02.02.2021, 11.02.2021, 01.03.2021, 10.03.2021 and 31.03.2021 during the Financial Year 2020-21. The Company has also maintained the proper record of the minutes of the meetings. NNNNNooooommmmmiiiiinnnnnaaaaatttttioioioioion an an an an and Rnd Rnd Rnd Rnd Reeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion Con Con Con Con Commmmmmmmmmitititititttttteeeeee me e me e me e meetetetetetiiiiinnnnnggggg ::::: e me IIIIIndendendendendepppppeeeeendendendendendennnnnt Di t Di t Di t Dirrrrreeeeectctctctctooooorsrsrsrsrs’ me ’ me ’ me ’ meetetetetetiiiiinnnnnggggg ::::: t Di ’ me The Committee met on 28.07.2020, 24.09.2020 and 12.11.2020 during the Financial Year 2020-21. The Company has also maintained the proper record of the minutes of the meetings. CCCCCSSSSSR CoR CoR CoR CoR Commmmmmmmmmitititititttttteeeeeeeeee::::: The Committee met on 28.07.2020 during the Financial Year 2020-21. The Company has also maintained the proper record of the minutes of the meetings. n of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd::::: n of t CoCoCoCoCommmmmpppppositositositositositioioioioion of t n of t n of t During the Financial Year 2020-21 the Independent Directors met on 26/03/2021. We further report that The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non- Executive Directors and Independent Directors. LLLLLIIIIISSSSST OT OT OT OT OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRS AS AS AS AS AS OS OS OS OS ON 31.03.2021 N 31.03.2021 N 31.03.2021 N 31.03.2021 N 31.03.2021 NNNNNAAAAAMMMMME OE OE OE OE OF TF TF TF TF THHHHHE DE DE DE DE DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS DDDDDEEEEESSSSSIIIIIGGGGGNNNNNAAAAATTTTTIIIIIOOOOONNNNN DDDDDIIIIINNNNN S.S.S.S.S. NNNNNOOOOO..... 1 MR. DEEPAK SETH 2 MR. PULKIT SETH 3 MR. CHITTRANJAN DUA Chairman Managing Director Independent Director 4 MR. RAJENDRA KUMAR ANEJA Independent Director 5 MRS. SHIFALLI SETH 6 MR. ANIL NAYAR 7 MR. ABHISHEK GOYAL Whole-Time Director Independent Director Independent Director 8 MRS. MADHULIKA BHUPATKAR Independent Director 9 MR. UMA SHANKAR KAUSHIK Whole-Time Director 10 MR. SHAILESH KUMAR Whole-Time Director 00003021 00003044 00036080 00731956 01388430 01390190 01928855 08712718 06867819 08897225 DDDDDIIIIIRRRRRECECECECECTTTTTOOOOORRRRR SSSSSIIIIINNNNNCCCCCEEEEE 22.03.1994 01.11.2004 12.09.2006 12.09.2006 19.01.2012 19.01.2012 26.05.2017 18.03.2020 28.07.2020 07.10.2020 44 Pearl Global Industries Limited Annual Report 2020-21 Annexure-III to the Directors’ Report 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 l yea s met fivfivfivfivfive te te te te tiiiiimesmesmesmesmes ddddduuuuurrrrriiiiinnnnnggggg ttttthe fihe fihe fihe fihe finnnnnaaaaancianciancianciancial yea l yea s met BBBBBoooooaaaaarrrrrddddd hhhhhaaaaas met s met l yearrrrr ooooonnnnn::::: l yea s met DDDDDaaaaattttte of e ofe of e ofe of MMMMMeeeeeetetetetetiiiiinnnnnggggg DDDDDaaaaattttte of e ofe of e ofe of seseseseserrrrrvvvvviiiiinnnnng tg tg tg tg thehehehehe notnotnotnotnoticiciciciceeeee MMMMMeeeeeetetetetetiiiiinnnnnggggg HHHHHeldeldeldeldeld PPPPPhhhhhysicysicysicysicysicaaaaalllllly/ly/ly/ly/ly/ VCVCVCVCVC TTTTTotototototaaaaal Nl Nl Nl Nl Nooooo. of . of . of . of . of LLLLLeaeaeaeaeavvvvveeeee ofofofofof TTTTTotototototaaaaal Nl Nl Nl Nl Nooooo..... DiDiDiDiDirrrrreeeeectctctctctooooorsrsrsrsrs ooooonnnnn ttttthehehehehe AAAAAbsebsebsebsebsencncncncnceeeee gggggrrrrraaaaannnnnttttteeeeeddddd ofofofofof DiDiDiDiDirrrrreeeeectctctctctooooorsrsrsrsrs BBBBBoooooaaaaarrrrrddddd ooooonnnnn dddddaaaaattttteeeee o Dirrrrreeeeectctctctctooooorrrrr ttttto Di o Di o Di o Di of meetetetetetiiiiinnnnnggggg of me of me of me of me PPPPPrrrrreseeseeseeseesennnnnttttt CCCCChhhhhaaaaaiiiiirrrrrmmmmmaaaaan ofn ofn ofn ofn of ttttthehehehehe MMMMMeeeeeetetetetetiiiiinnnnnggggg 28.07.2020 17.07.2020 14.09.2020 04.09.2020 07.10.2020 28.09.2020 12.11.2020 02.11.2020 12.02.2021 01.02.2021 VC VC VC VC VC 9 9 10 10 10 — — 1 1 1 9 9 9 9 9 Mr. Deepak Seth Mr. Deepak Seth Mr. Deepak Seth Mr. Deepak Seth Mr. Deepak Seth The Company has also maintained the proper record of the minutes of the meetings. Majority decisions are carried through the Board (means unanimously) and there are no dissenting members’ views are captured and recorded as part of the minutes. AAAAAnnnnnnnnnnuuuuuaaaaal Gl Gl Gl Gl Geeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnnggggg ::::: During the Financial Year 2020-21 the Company has called 31st Annual General Meeting for the Financial Year 2019-20 on 26th November 2020, through Video Conferencing facility The Company has kept the e-voting period from 23rd November 2020 to 25th November 2020 (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. 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 No dividend was declared for the financial year ending 31st March 2020. We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines mentioned above and also laws listed herein below: As the Company carries on the business of manufacturing and Export of readymade Garments. As informed by the management, the following laws are the specific laws, specifically applicable to the Company; 1. The Air (Prevention and Control of Pollution) Act, 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. Register of Renewal and Duplicate Shares Certificate 8. The Industrial Employment (Standing Orders) Act, 1946. Pearl Global Industries Limited Annual Report 2020-21 45 Annexure-III to the Directors’ Report 9. The Industries (Development and Regulation) Act, 1951. The Board of Directors through Circular Resolution on April 20, 2021, have approved for change of Registered office from A-3,Community Centre, Naraina Industrial Area, Phase-II, New Delhi to C-17/1,Paschimi Marg, Vasant Vihar, New Delhi-110057 w.e.f. 1st May, 2021. Due to current Covid Guidelines all the records were examined online without physical visit. Place: Gurugram Date: 14th June, 2021 UDIN: F004482C000456307 Peer Review Certificate No. 1061/2021 nd Assososososociaciaciaciaciattttteseseseses nd As For JJJJJaaaaayyyyyaaaaannnnnt St St St St Sooooooooood ad ad ad ad and As nd As nd 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 Annexure-IV to the Directors’ Report FFFFFooooorrrrrm Nm Nm Nm Nm Nooooo. A. A. A. A. AOOOOOCCCCC-2-2-2-2-2 (Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014) 1. Details of contracts or arrangements or transactions not at arm’s length basis: NNNNNIIIIILLLLL 2. Details of material contracts or arrangement or transactions at arm’s length basis: me of thehehehehe me of t me of t SlSlSlSlSl..... NNNNNaaaaame of t me of t rrrrrelelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttyyyyy NNNNNooooo..... NNNNNaaaaatttttuuuuurrrrreeeee of tof tof tof tof thehehehehe e ofe of e ofe of NNNNNaaaaatttttuuuuurrrrre of CoCoCoCoConnnnntttttrrrrractactactactacts/s/s/s/s/ DDDDDuuuuurrrrraaaaatttttioioioioion ofn ofn ofn ofn of ttttthe che che che che cooooonnnnntttttrrrrractactactactacts/s/s/s/s/ of tof tof tof tof the che che che che cooooonnnnntttttrrrrractactactactactsssss rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp aaaaarrrrrrrrrraaaaannnnngggggeeeeemememememennnnnt/t/t/t/t/ aaaaarrrrrrrrrraaaaannnnngggggeeeeemememememennnnnttttts/s/s/s/s/ ooooor ar ar ar ar arrrrrrrrrraaaaannnnngggggeeeeemememememennnnntttttsssss sactioioioioionnnnnsssss sact sact ooooor tr tr tr tr trrrrraaaaannnnnsact sact SSSSSaaaaalllllieieieieiennnnnt tt tt tt tt teeeeerrrrrmmmmmsssss sactioioioioionnnnnsssss sact sact tttttrrrrraaaaannnnnsact sact sactioioioioionnnnnsssss sact sact tttttrrrrraaaaannnnnsact sact VVVVVaaaaalllllueueueueue (R(R(R(R(Rsssss. i. i. i. i. innnnn LaLaLaLaLakkkkkhhhhh))))) DDDDDaaaaattttte of e ofe of e ofe of l of l of aaaaapppppppppprrrrrovovovovovaaaaal of l of l of ttttthe Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd,,,,, if aif aif aif aif annnnnyyyyy AAAAAmoumoumoumoumounnnnnttttt id asssss id a id a pppppaaaaaid a id a adadadadadvvvvvaaaaancncncncnces,es,es,es,es, if aif aif aif aif annnnnyyyyy 1 Norp Knit Industries Subsidiary Purchase of Limited goods 01.04.2020 to 31.03.2021 - 19,319.41 13.08.2019 Sale of goods Expenses incurred by them on our behalf Income on Corporate guarentee Expenses paid by us on their behalf 77.76 4.13 46.06 8.64 NIL Place: Gurugram Date: August 14, 2021 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 46 Pearl Global Industries Limited Annual Report 2020-21 Annexure-V to the Directors’ Report [Pursuant to Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] SlSlSlSlSl..... NNNNNooooo..... I 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)* Mr. Uma Shankar Kaushik (WTD) Mr. Kumar Shailesh (WTD) II The percentage increase in remuneration of each Director, CFO, CS in the financial year III The percentage increase in the median remuneration of employees in the financial year 60.00x 25.00x 5.91x 7.5x 6.0x NIL NIL IV The number of permanent employees on the rolls of the Company There were approx 5,126 permanent employees as on 31st March, 2021 V Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration; Average percentile increase in the salary of employees other than managerial personnel in the last financial year NIL. Average percentile increase in the salary of Managerial personnel in the last financial year NIL. VI Affirmation that the remuneration is as per the remuneration policy of The remuneration paid to Directors/employees is as per remuneration policy. the Company *Mr. Vinod Vaish has resigned w.e.f. April 30,2020. Place: Gurugram Date: August 14, 2021 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 2020-21 47 Annexure-VI 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 is relelelelelaaaaatttttiviviviviveeeee shshshshshaaaaarrrrre held e held e held is r is r 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. Sanjay Gandhi Group CFO B.Com (Hons), CA 3 Mr. Pankaj Bhasin CEO-Sampling & B.Com and Apparel Merchandising Production Management 4 Mr. Sundeep COO-Knits B.A. Chatrath Division (India) 5 Mr. Anand Bhatia Vice-President (Production) B.Sc., MBA 6 Mr. Sumit Kumar Executive Assistant- Chairman 7 Mr. Hari S COO B.E. (M.E.), PGDMA, CFA-II Post Graduate In Garment Manufacturing Technology , NIFT 8 Mr. Kashmir Chief Financial MBA -Finance Singh Rathore Officer 9 Ms. Ratna Singh Chief Human Resource Officer B.A. 10 Mr. Raghav Garg* Chief Financial Officer B.Com (Hons), CA Note: Nature of employment is non contructual * Mr. Raghav Garg resigned from the Company w.e.f. June 30, 2020. 53 29 01.06.2019 8,655,311 VP-Global Sourcing NIL No (Wovens) - GAP, MD- Global International Sourcing India Pvt. Ltd. 21 26 33 29 14 18.12.2019 5,414,120 CFO-Solutions, Sterlite Power 15.07.1995 3,917,921 NIL 01.06.2017 3,899,292 Head-Merchandising, Gupta Exim, Faridabad 09.08.2011 3,381,311 Factory Manager, Texport Fashion Ltd 08.02.2017 2,956,222 AGM, Punj Lloyd NIL NIL NIL NIL NIL 23 01.10.2019 2,452,420 GM-Operations, NIL JMS Garments 23 01.07.2020 2,034,099 Chief Financial Offier, NIL NorpKnit Industries Ltd 26 14 19.10.2020 1,925,049 Director-HR, Flipkart NIL 21.01.2019 1,310,676 Vice Presidnet - NIL F&A - Trident Ltd. 45 48 54 52 39 48 50 46 38 No No No No No No No No No 48 Pearl Global Industries Limited Annual Report 2020-21 Annexure VII 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 es of enenenenenergrgrgrgrgyyyyy ::::: 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 (((((iiiiiiiiii))))) SSSSSttttteeeeeps tps tps tps tps taaaaakkkkkeeeeen bn bn bn bn by ty ty ty ty the Co he Co he Co e sou es of e he Co 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 : y absorptrptrptrptrptioioioioionnnnn::::: (((((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 ade t y abso Nil uct devvvvveloeloeloeloelopppppmememememennnnnt ot ot ot ot or ir ir ir ir immmmmpppppooooorrrrrt st st st st subsubsubsubsubstttttititititituuuuutttttioioioioionnnnn::::: uct immmmmppppprrrrrovovovovoveeeeemememememennnnnt, ct, ct, ct, ct, cososososost rt rt rt rt reeeeeddddductuctuctuctuctioioioioion, pn, pn, pn, pn, prrrrroooooddddduct de uct de uct de (((((iiiiiiiiii))))) BBBBBeeeeenefit nefit nefit s des derrrrriviviviviveeeeed ld ld ld ld likikikikike pe pe pe pe prrrrroooooddddduct i s des de uct i uct i nefits de uct de nefit uct i Not Applicable e years rrs rrs rrs rrs reeeeeckckckckckooooonenenenened frd frd frd frd frooooom tm tm tm tm the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t 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 (((((iiiiiiiiiiiiiii))))) IIIIIn cn cn cn cn caaaaase of i se of i se of i g of t g of t g of thehehehehe e yea e yea se of i g of t e yea fififififinnnnnaaaaancianciancianciancial yea l yea l yea l year):r):r):r):r): l yea a Technology Imported b Year of Import c Has technology been fully absorbed? d If not fully absorbed, areas where this has not taken place, and the reasons. ch & Deeeeevvvvveloeloeloeloelopppppmememememennnnnttttt::::: ch & D esearrrrrch & D ch & D esea he expppppeeeeendndndndndititititituuuuurrrrre ie ie ie ie incuncuncuncuncurrrrrrrrrreeeeed od od od od on Rn Rn Rn Rn Resea esea he ex (((((iv)iv)iv)iv)iv) TTTTThe ex he ex ch & D esea he ex ExExExExExpppppeeeeendndndndndititititituuuuurrrrre oe oe oe oe on R & D n R & D n R & D n R & D n R & D a) Capital b) Recurring TTTTTotototototaaaaalllll C.C.C.C.C. FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Ee Ee Ee Ee Eaaaaarrrrrnnnnniiiiinnnnngggggs as as as as and Ond Ond Ond Ond Ouuuuutgtgtgtgtgooooo FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Ee Ee Ee Ee Eaaaaarrrrrnnnnniiiiinnnnngggggsssss PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Export of Goods - FOB basis Interest Income IT/SAP Income TTTTTotototototaaaaalllll : Not Applicable : N.A. N.A. : N.A. : 2020-21 2020-21 2020-21 2020-21 2020-21 NIL 517.85 517.85 517.85 517.85 517.85 517.85 2020-21 2020-21 2020-21 2020-21 2020-21 73,525.71 32.21 117.07 (`/Lakh) 2019-20 2019-20 2019-20 2019-20 2019-20 NIL 783.95 783.95 783.95 783.95 783.95 783.95 (`/Lakh) 2019-20 2019-20 2019-20 2019-20 2019-20 74,130.24 30.11 98.11 73,674.99 73,674.99 73,674.99 73,674.99 73,674.99 74,258.46 74,258.46 74,258.46 74,258.46 74,258.46 Pearl Global Industries Limited Annual Report 2020-21 49 Annexure VII to the Director’s Report (contd...) FFFFFooooorrrrreigeigeigeigeign Exn Exn Exn Exn Exchchchchchaaaaannnnnggggge Oe Oe Oe Oe Ouuuuutgtgtgtgtgooooo PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Imports Foreign Travelling EDI Expenses Others TTTTTotototototaaaaalllll Place: Gurugram Date: August 14, 2021 2020-21 2020-21 2020-21 2020-21 2020-21 601.67 43.67 41.12 102.12 788.58 788.58 788.58 788.58 788.58 (`/Lakh) 2019-20 2019-20 2019-20 2019-20 2019-20 12,730.23 68.73 63.07 59.41 12,921.44 12,921.44 12,921.44 12,921.44 12,921.44 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 2020-21 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 AAAAAcccccqqqqquuuuuisit rrrrraaaaattttteeeee isitioioioioionnnnn isit isit isit CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy PPPPPeeeeerrrrrioioioioioddddd EqEqEqEqEquuuuuititititityyyyy RRRRReseeseeseeseeserrrrrvvvvveseseseses ShShShShShaaaaarrrrreeeee & s& s& s& s& suuuuurprprprprpllllluuuuusssss TTTTTotototototaaaaalllll TTTTTotototototaaaaalllll aaaaassssssetsetsetsetsetsssss LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies IIIIInnnnnvvvvvesesesesestttttmememememennnnntttttsssss TTTTTuuuuurrrrrnovnovnovnovnoveeeeerrrrr ofit/ PPPPPrrrrrovovovovovisioisioisioisioisionnnnn ofit/ ofit/ PPPPPrrrrrofit/ ofit/ LLLLLososososossssss for forfor for for bbbbbefoefoefoefoeforrrrreeeee tttttaaaaaxaxaxaxaxatttttioioioioionnnnn 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 -4.90 0.36 0.25 0.00 0.00 -0.65 0.00 -0.65 - -0.26 65.56 64.81 0.00 27.10 -0.01 0.00 -0.01 - 100 100 - (0.65) - (0.01) 1 2 Pearl Global Kaushal Vikas Limited SBUYS E-Commerce Limited 18.06.2014 31-Mar-21 20.09.2019 31-Mar-21 INR INR CCCCCaaaaapppppitititititaaaaalllll NA NA 5.00 1.00 3 Norp Knit Industries 22.03.2006 31-Mar-21 USD 73.50 3540.37 10254.92 35641.72 21846.43 954.73 56037.47 344.73 330.68 14.05 - 99.99 - 14.05 Limited Pearl Global Fareast Limited# Peal Global (HK) Limited# PGIC Investment Limited Pearl Grass Creations Limited 4 5 6 7 8 Vin Pearl Global Vietnam Limited# 9 Pearl Global Vietnam Co. Limited 16.03.2009 31-Mar-21 USD 73.50 3186.43 3943.71 9775.88 2645.74 2148.98 13088.06 116.07 0.00 116.07 - 100 24.12 140.19 22.12.2009 31-Mar-21 USD 73.50 6659.53 6415.68 38256.57 25181.36 12968.08 77390.90 1144.47 49.88 1094.59 - 100 13.56 1,108.15 16.08.2016 31-Mar-21 USD 73.50 0.0 -473.95 4022.23 4496.19 0.00 0.00 -209.58 0.00 -209.58 - 100 - (209.58) 11.07.2016 31-Mar-21 USD 73.50 294.02 -1523.50 1193.08 2422.56 0.00 8945.15 -79.72 0.00 -79.72 - 80 - (79.72) 11.07.2016 31-Mar-21 USD 73.50 8.82 -1136.78 9253.55 10381.51 3031.55 15006.38 122.15 0.00 122.15 - 100 4.13 126.28 01.05.2017 31-Mar-21 VND 0.00 2287.44 -1791.33 7981.97 7485.86 0.00 14926.72 87.64 0.00 87.64 - 100 - 87.64 10 Prudent Fashions 02.03.2017 31-Mar-21 BDT 0.85 1666.07 -341.22 4254.41 2929.56 0.00 0.00 -219.79 0.79 -220.58 - 99.95 - (220.58) Limited 11 DSSP Global Limited# 12 PT Pinnacle Apparels 08.11.2012 31-Mar-21 USD 73.50 1106.33 4560.51 9410.28 3743.44 771.78 18524.34 96.32 49.88 46.44 - 100 (31.35) 15.09 30.03.2006 31-Mar-21 USD 73.50 1105.48 4355.59 6678.75 1217.68 0.00 12316.40 177.15 49.88 127.26 - 69.91 (31.35) 95.92 # Figurers are on consolidated basis. 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 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Financial Officer (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Place: Gurugram Date: June 21, 2021 Pearl Global Industries Limited Annual Report 2020-21 51 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 workplace. 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 2021, the Company’s Board of Directors consists of 10 (Ten) members. The Chairman of the Board is non-executive Promoter Director. The Board comprises of four 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 brings a wide range of expertise and experience to the Board. CoCoCoCoCommmmmpppppositositositositositioioioioion an an an an and Cnd Cnd Cnd Cnd Caaaaattttteeeeegggggooooorrrrry of t n 31.03.2021 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 lnd lnd lnd lnd laaaaassssst At At At At Annnnnnnnnnuuuuuaaaaalllll n 31.03.2021 a y of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrd ad ad ad ad as os os os os on 31.03.2021 a n 31.03.2021 a y of t y of t y of t n 31.03.2021 a s herrrrreueueueueundendendendenderrrrr::::: s he GGGGGeeeeenenenenenerrrrraaaaal Ml Ml Ml Ml Meeeeeetetetetetiiiiinnnnngggggs as as as as arrrrre ae ae ae ae as he s he s he me of Dirrrrreeeeectctctctctooooorrrrr me of Di me of Di S.S.S.S.S. NNNNNaaaaame of Di me of Di NNNNNooooo..... AAAAAtttttttttteeeeendndndndndaaaaan cn cn cn cn ceeeee CCCCCaaaaattttteeeeegggggooooorrrrryyyyy 1 Mr. Deepak Seth 2 Mr. Pulkit Seth 3 Mrs. Shifalli Seth 4 Mr. Uma Shankar Kaushik 5 Mr. Shailesh Kumar 6 Mr. Chittranjan Dua 7 Mr. Rajendra Kumar Aneja 8 Mr. Anil Nayar 9 Mr. Abhishek Goyal 10 Mrs. Madhulika Bhupatkar Promoter, Non-Executive Promoter, Executive Promoter, Executive Executive Executive Non-executive Independent Non-executive Independent Non-executive Independent Non-executive Independent Non-executive Independent BBBBBoooooaaaaarrrrrddddd AAAAAnnnnnnnnnnuuuuuaaaaalllll MMMMMeeeeeetetetetetiiiiinnnnngggggsssss GGGGGeeeeenenenenenerrrrraaaaalllll MMMMMeeeeeetetetetetiiiiinnnnnggggg Yes Yes No Yes Yes Yes Yes Yes Yes Yes 5 5 2 5 3 5 5 5 5 5 r Dirrrrreeeeectctctctctooooorshrshrshrshrshiiiiips,ps,ps,ps,ps, r Di r Di r of otheheheheher Di r of ot r of ot NNNNNuuuuum bm bm bm bm beeeeer of ot r Di r of ot ps/chaaaaaiiiiirrrrrmmmmmaaaaannnnnshshshshshiiiiipspspspsps ps/ch ps/ch e mem bm bm bm bm beeeeershrshrshrshrshiiiiips/ch e me e me cccccooooommmmmmmmmmitititititttttteeeeee me ps/ch e me C C C C Chhhhhaaaaaiiiiirrrrrmmmmmaaaaannnnn----- MMMMMeeeeem bm bm bm bm beeeeerrrrr----- OOOOOtttttheheheheherrrrr D iD iD iD iD irrrrreeeeectctctctctooooorrrrr----- shshshshshiiiiips**ps**ps**ps**ps** shshshshshiiiiips**ps**ps**ps**ps** shshshshshiiiiips*ps*ps*ps*ps* 3 2 2 - - 6 - - 1 - 2 - - - - 5 - - - - - - - - - 2 - - - - * For other Directorships, Foreign Companies, Bodies Corporate, Private Companies and Companies under Section 8 are not included. **For membership and chairmanship in Committees, includes Audit Committee and Stakeholders’ Relationship Committee as per Regulation 26 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for all public limited companies whether listed or not, excluding the memberships and chairmanships in the Company. 52 Pearl Global Industries Limited Annual Report 2020-21 Corporate Governance (contd...) rs of t rs of t NNNNNaaaaame of ot he Co he Co he Commmmmpppppaaaaannnnny is Di me of ot me of ot me of otheheheheher lr lr lr lr lisisisisisttttteeeeed ed ed ed ed ennnnntttttititititities wies wies wies wies wheheheheherrrrre Di y is Di y is Di y is Dirrrrreeeeectctctctctooooors ars ars ars ars and cnd cnd cnd cnd caaaaattttteeeeegggggooooorrrrry of Di e Di e Di e Dirrrrreeeeectctctctctooooors of t y of Di y of Di y of Dirrrrreeeeectctctctctooooorshrshrshrshrshiiiiippppp::::: rs of the Co rs of t he Co me of ot y is Di e Di y of Di me of Dirrrrreeeeectctctctctooooorrrrr me of Di NNNNNaaaaame of Di me of Di me of Di Mr. Deepak Seth 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 Promoter, Non-Executive 00003044 NIL Mr. Pulkit Seth Mrs. Shifalli Seth 01388430 NIL Mr. Uma Shankar Kaushik 06867819 NIL 08897225 NIL Mr. Shailesh Kumar 00036080 TVS Motor Company Limited Mr. Chittranjan Dua Gillette India Limited Director NIL NIL NIL NIL Non-Executive Independent Director Non-Executive Independent Director Mr. Rajendra Kumar Aneja 00731956 NIL 01390190 NIL Mr. Anil Nayar Mr. Abhishek Goyal 01928855 NIL Mrs. Madhulika Bhupatkar 08712718 NIL Procter & Gable Hygiene and Health Chairman of the Board and Non- Care Limited Executive Independent Director NIL NIL NIL 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. There is no Nominee or Institutional Directors on the Board of the Company. During the financial year 2020-21, five (5) Board Meetings were held on 28th July 2020, 14th September 2020, 7th October 2020, 12th November 2020, and 12th February, 2021. 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 d of Di e of the Bhe Bhe Bhe Bhe Boooooaaaaarrrrrd 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 and ability to understand key financial statements, strategic financial planning and budgets. 5 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 5 Pearl Global Industries Limited Annual Report 2020-21 53 Corporate Governance (contd...) SkSkSkSkSkililililill al al al al arrrrreaeaeaeaea DDDDDescescescescescrrrrriiiiiptptptptptioioioioionnnnn Global Business Leadership and Strategic Planning • 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. Technology and Innovation Legal and Governance • Ability to protect shareholders’ interest and observe • Knowledge of technological trends in apparel industry. appropriate governance practices. • Monitor risk and compliance management system including legal framework. Human Resource and • Ability to understand Labour Laws and other related applicable Laws including administration functions of Administration the Company. 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 7 8 3 8 5 The Board members possess the skills identified; their area of core expertise is given below: 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. Shailesh Kumar 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 Human Resource and Administration Technology and Innovation Product design, Manufacturing, Sales and Marketing Global Business Leadership and Strategic Planning Finance Human Resource and Administration Legal and Governance Technology and Innovation Product design, Manufacturing, Sales and Marketing Global Business Leadership and Strategic Planning Technology and Innovation Human Resource and Administration Legal and Governance 54 Pearl Global Industries Limited Annual Report 2020-21 Corporate Governance (contd...) NNNNNaaaaame of Di me of Dirrrrreeeeectctctctctooooorrrrr me of Di me of Di me of Di Mr. Uma Shankar Kaushik Human Resource and Administration ea of Expppppeeeeerrrrrtttttiseiseiseiseise ea of Ex AAAAArrrrrea of Ex ea of Ex ea of Ex Mr. Anil Nayar Mr. Chittranjan Dua Mr. Rajendra Kumar Aneja Mr. Abhishek Goyal Legal and Governance Product design, Manufacturing, Sales and Marketing Finance Global Business Leadership and Strategic Planning Legal and Governance Global Business Leadership and Strategic Planning Legal and Governance Product design, Manufacturing, Sales and Marketing Global Business Finance Legal and Governance Leadership and Strategic Planning Finance Legal and Governance Leadership and Strategic Planning Global Business Mrs. Madhulika Bhupatkar Human Resource and Administration Leadership and Strategic Planning 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; Pearl Global Industries Limited Annual Report 2020-21 55 Corporate Governance (contd...) • 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. 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. • Approval of appointment of Chief Financial Officer. • Reviewing the utilization of loans and/ or advances from/investment by the holding company in the subsidiary. All the members of Audit Committee are Non-Executive Independent Directors. All the members of the committee possess financial/accounting expertise. The Company Secretary of the Company 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 July 2020, 14th September 2020, 12th November 2020 and 12th February 2021 during the financial year 2020-21. The maximum gap between any two meetings was in compliance with as per Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 56 Pearl Global Industries Limited Annual Report 2020-21 Corporate Governance (contd...) During the year 2020-21, the members of the Audit Committee and their attendance are as under: it Commmmmmmmmmitititititttttteeeeeeeeee it Co AAAAAudududududit Co it Co it Co Composition – Chairman Mr. Anil Nayar Mrs. Madhulika Bhupatkar – Member Director Mr. Abhishek Goyal – Member Director Mr. Rajendra Kumar Aneja – Member Director No. of Meetings attended 4 4 4 4 4.4.4.4.4. NNNNNOOOOOMMMMMIIIIINNNNNAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND RD RD RD RD REEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON CN CN CN CN COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE The Nomination and Remuneration Committee has been constituted as per Section 178 of the Companies Act, 2013 and the guidelines set out in Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The terms of reference includes: • • • Identification of the persons who may be appointed in senior management, evaluation of performances of Key Managerial Personnel, monitoring their compensation packages, employment arrangements and remuneration policy; Review and approve succession and emergency preparedness plan for the Key Managerial Personnel and all senior Management personnel; Review of organization structure; • Assist in identifying and finalizing suitable candidates as members of the Board and recommendation of compensations norms; • Devising of remuneration policy and Board diversity policy for the Board Members; • Monitor and Evaluation of Board Evaluation Framework; 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 July, 2020, 24th September, 2020, and 12th November, 2020, during the financial year 2020-21. 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 3 3 3 3 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. Pearl Global Industries Limited Annual Report 2020-21 57 Corporate Governance (contd...) • 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. SSSSSTTTTTAAAAAKKKKKEEEEEHHHHHOOOOOLLLLLDDDDDEEEEERRRRRS RS RS RS RS REEEEELLLLLAAAAATTTTTIIIIIOOOOONSNSNSNSNSHHHHHIIIIIP CP CP CP CP COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE As on 31st March, 2021, the Stakeholders Relationship Committee comprises of: Mr. Anil Nayar Mr. Pulkit Seth Mr. Rajendra K Aneja - Chairman - Member - Member The Chairman of the Committee is Non- Executive Independent Director. The Company Secretary of the Company acts as Secretary of the Committee. The meetings of the Stakeholders Relationship Committee were held on 28th October, 2020, 9th December, 2020 and 21st December, 2020 during the financial year 2020-21. r 2020-21 r 2020-21 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 2020-21 he year 2020-21 r 2020-21 he yea rs Co s of Sh Complaints at the beginning of the year. Nil Complaints received during the year. Nil Complaints settled during the year. Nil Complaints pending at the ending of the year Nil 6.6.6.6.6. CCCCCOOOOORRRRRPPPPPOOOOORRRRRAAAAATTTTTE SE SE SE SE SOOOOOCCCCCIIIIIAAAAAL RL RL RL RL REEEEEPPPPPOOOOOSSSSSIIIIIBBBBBIIIIILLLLLIIIIITTTTTY CY CY CY CY COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE As on 31st March, 2021, the Corporate Social Responsibility Committee comprises of: Mrs. Madhulika Bhupatkar - Chairperson Mr. Pulkit Seth Mr. Anil Nayar - Member - Member The Chairperson of the Committee is Non-Executive Independent Director. The Secretary of the Company acts as Secretary of the Committee. One meeting held on 28th July, 2020, during the financial year 2020-21. 7.7.7.7.7. FIFIFIFIFINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOMMMMMMMMMMIIIIITTTTTTTTTTEEEEEEEEEE As on 31st March, 2021, the Finance Committee comprises of: Mr. Pulkit Seth Mrs. Shifalli Seth Mr. Abhishek Goyal - Chairman - Member - Member The Chairman of the Committee is Executive Director. The Company Secretary of the Company acts as Secretary of the Committee. The meetings of Finance Committee were held on 27th April, 2020, 30th July, 2020, 12th October, 2020, 11th December, 2020, 22nd January, 2021, 2nd February, 2021, 11th February, 2021, 1st March, 2021, 10th March, 2021 and 31st March, 2021 during the financial year 2020-21. 58 Pearl Global Industries Limited Annual Report 2020-21 Corporate Governance (contd...) 8.8.8.8.8. RRRRREEEEEMMMMMUUUUUNNNNNEEEEERRRRRAAAAATTTTTIIIIIOOOOON ON ON ON ON OF DF DF DF DF DIIIIIRRRRRECECECECECTTTTTOOOOORRRRRSSSSS Details of remuneration paid to all the Directors for the year 2020-21 are as under::::: (Amount in `) NNNNNaaaaame of t me of t me of t he Di he Di he Dirrrrreeeeectctctctctooooor(s) r(s) r(s) me of the Di r(s) me of t he Di r(s) Designation Salary HRA Special Allowance Conveyance Allowance 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 MMMMMrrrrr..... DDDDDeeeeeeeeeepppppaaaaakkkkk SSSSSetetetetethhhhh MMMMMrrrrr..... MMMMMrsrsrsrsrs..... PPPPPuuuuulllllkkkkkititititit S hS hS hS hS hifififififaaaaalllllllllliiiii SSSSSetetetetethhhhh SSSSSetetetetethhhhh Chairman Managing Whole Time Director MMMMMrrrrr. U. U. U. U. Ummmmmaaaaa MMMMMrrrrr..... S hS hS hS hS haaaaannnnnkakakakakarrrrr S hS hS hS hS haaaaailesh ilesh ilesh ilesh ilesh K aK aK aK aK auuuuushshshshshikikikikik KKKKKuuuuummmmmaaaaarrrrr Whole Whole Time Time Director Director Director 8.24 4.12 2.46 0.13 — — — — — — — 34.75 — — — — — — — 0.11 — — 4.00 2.00 1.50 — — — — — — — — 83.40 — — — — — — — 0.11 — — — 3 years — Nil — 3 years — Nil — 3 years — Nil — 3 years — Nil — — — — — — — — — — — — — Nil Nil MMMMMrrrrr..... MMMMMrrrrr..... MMMMMrsrsrsrsrs..... MMMMMrrrrr. A. A. A. A. Annnnnililililil MMMMMrrrrr. C R . C R . C R . C R . C R DDDDDuuuuuaaaaa NNNNNaaaaayyyyyaaaaarrrrr RRRRRajajajajajeeeeendrndrndrndrndraaaaa AAAAAbbbbbhhhhhishek ishek ishek ishek MMMMMadadadadadhhhhhuuuuulllllikaikaikaikaika ishek K AK AK AK AK Anejanejanejanejaneja BBBBBhhhhhuuuuupppppaaaaatttttkakakakakarrrrr Director Director Director Director Director GGGGGoooooyyyyyaaaaalllll — — — — — — — — — — — — — Nil Nil — — — — — — — — — — — — — Nil Nil — — — — — — — — — — — — — Nil Nil — — — — — — — — — — — — — Nil Nil — — — — — — — — — — — — — Nil Nil Sitting Fees TTTTTotototototaaaaalllll 0.50 0.50 — — — 83.51 34.86 14.95 — 7.50 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 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. The Company does not have any separate service contract with executive directors apart from Resolution of Board/shareholders. 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 2017-18 AAAAAGGGGGMMMMM LLLLLooooocccccaaaaatttttioioioioionnnnn 29th 2018-19 30th 2019-20 31st 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 Through Video Conferencing (VC) or Other Audio Visual Means (OAVM) DDDDDaaaaattttteeeee 24.09.2018 TTTTTiiiiimememememe 10.30 A.M. 24.09.2019 10.30 A.M. 26.11.2020 11.30 A.M. Pearl Global Industries Limited Annual Report 2020-21 59 Corporate Governance (contd...) 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 rs of Spppppeeeeeciaciaciaciacial Rl Rl Rl Rl Resoesoesoesoesollllluuuuutttttioioioioionnnnn rs of S SlSlSlSlSl..... PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of S rs of S rs of S NNNNNooooo..... 1 2 Re-appointment of Mr. Pulkit Seth as Managing Director of the NIL DDDDDaaaaattttteeeee FFFFFiiiiinnnnnaaaaancianciancianciancialllll YYYYYeaeaeaeaearrrrr 26th November, 2020 2019-20 24th September, 2019 2018-19 Company. 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. 3 Re-appointment of Mrs. Shifalli Seth as Whole-Time Director of the 24th September, 2018 2017-18 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. 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 Business Standard (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 regularly 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 32nd Annual General Meeting will be held on or before September 30, 2021 (subject to change). l yearrrrr (((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial yea l yea l yea l yea : The financial year covers the period 1st April to 31st March. , 2021-22 (TTTTTeeeeennnnntttttaaaaatttttivivivivive)e)e)e)e) , 2021-22 ( FFFFFiiiiinnnnnaaaaancianciancianciancial Cl Cl Cl Cl Caaaaalelelelelendndndndndaaaaarrrrr, 2021-22 ( , 2021-22 ( , 2021-22 ( First Quarter Results : Second week of August, 2021 Second Quarter & Half Yearly Results : Second week of November, 2021 60 Pearl Global Industries Limited Annual Report 2020-21 Corporate Governance (contd...) Third Quarter Results : Second week of February, 2022 Fourth Quarter & Annual Results : Last week of May, 2022 (((((iiiiiiiiiiiiiii))))) DivDivDivDivDivideideideideidend pnd pnd pnd pnd paaaaayyyyymememememennnnnt dt dt dt dt daaaaattttteeeee: : : : : Not Applicable. (((((iv)iv)iv)iv)iv) LLLLLisisisisistttttiiiiinnnnng og og og og on Sn Sn Sn Sn Stttttooooock Ex 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 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 – 400 001 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 2021-2022 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)(v) 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 monnnnnttttth ih ih ih ih in fin fin fin fin finnnnnaaaaancianciancianciancial yea l yea l yea r 2020-21: r 2020-21: g each mo g each mo l year 2020-21: r 2020-21: l yea r 2020-21: g each mo 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 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 HHHHHIIIIIGGGGGHHHHH 116.00 108.00 127.30 115.00 175.00 157.00 177.45 190.00 204.80 200.05 183.75 185.00 LLLLLOOOOOWWWWW 95.00 91.00 97.00 99.05 110.95 136.45 143.00 151.00 165.00 177.00 157.90 163.00 HHHHHIIIIIGGGGGHHHHH 113.00 108.00 141.00 116.55 157.40 167.50 178.95 178.00 204.85 200.55 185.00 183.80 LLLLLOOOOOWWWWW 93.50 89.55 92.00 99.25 110.05 136.00 133.95 159.00 164.70 174.00 155.30 162.40 Pearl Global Industries Limited Annual Report 2020-21 61 Corporate Governance (contd...) nd NSE NE NE NE NE Nifififififtttttyyyyy::::: nd NS nd NS sex a (v(v(v(v(viiiii))))) ShShShShShaaaaarrrrre 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 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 PPPPPGGGGGIIIIILLLLL 106.00 98.00 103.30 114.75 144.00 147.00 163.15 167.70 200.50 180.80 165.75 168.65 SSSSSeeeeennnnnsexsexsexsexsex 33,717.62 32,424.10 34,915.80 37,606.89 38,628.29 38,067.93 39,614.07 44,149.72 47,751.33 46,285.77 49,099.99 49,509.15 PPPPPGGGGGIIIIILLLLL 102.50 98.00 103.00 114.90 144.70 147.15 163.20 166.50 200.20 181.80 166.60 171.55 NNNNNifififififtttttyyyyy 9,859.90 9,580.30 10,302.10 11,073.45 11,387.50 11,247.55 11,642.40 12,968.95 13,981.75 13,634.60 14,529.15 14,690.70 (v(v(v(v(viiiiiiiiii))))) 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 Floork, 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 (v(v(v(v(viiiiiiiiiiiiiii))))) 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. (((((ix)ix)ix)ix)ix) DisDisDisDisDistttttrrrrribuibuibuibuibutttttioioioioion Sn Sn Sn Sn Schechechechecheddddduuuuulelelelele (a)(a)(a)(a)(a) he Commmmmpppppaaaaannnnny ay ay ay ay as os os os os on 31n 31n 31n 31n 31sssssttttt M M M M Maaaaarrrrrch 2021 ch 2021 ch 2021 he Co he Co g of t n of Equuuuuititititity Shy Shy Shy Shy Shaaaaarrrrrehoehoehoehoeholdldldldldiiiiinnnnng of t g of t n of Eq DisDisDisDisDistttttrrrrribuibuibuibuibutttttioioioioion of Eq n of Eq ch 2021 g of the Co ch 2021 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 1000- 2000 2001 - 3000 3001 - 4000 4001 - 5000 5001 – 10000 10001 and above TTTTTotototototaaaaalllll NNNNNuuuuumbmbmbmbmbeeeeersrsrsrsrs 13,236 176 80 24 19 14 31 69 13,649 13,649 13,649 13,649 13,649 % t% t% t% t% to to to to to totototototaaaaalllll 96.97 1.29 0.59 0.18 0.14 0.10 0.23 0.50 100.00 100.00 100.00 100.00 100.00 Eq Eq Eq Eq Equuuuuititititity shy shy shy shy shaaaaarrrrres held es held es held es held es held NNNNNuuuuumbmbmbmbmbeeeeersrsrsrsrs 860754 132202 123654 60618 67231 68356 228736 20122386 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 3.97 0.61 0.57 0.28 0.31 0.32 1.06 92.88 100.00 100.00 100.00 100.00 100.00 62 Pearl Global Industries Limited Annual Report 2020-21 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 2021 ch 2021 ch 2021 ies of Sh (((((bbbbb))))) CCCCCaaaaattttteeeeegggggooooorrrrries of Sh ies of Sh ch 2021 ch 2021 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 Unclaimed Shares IEPF 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. (x)(x)(x)(x)(x) DDDDDeeeeemmmmmaaaaattttteeeeerrrrriaiaiaiaialllllisaisaisaisaisatttttioioioioion of Sh n of Sh n of Sh n of Shaaaaarrrrres aes aes aes aes and lnd lnd lnd lnd liqiqiqiqiquuuuuidididididititititityyyyy n of Sh NNNNNooooo. of . of . of . of . of FFFFFooooolllllioioioioio’’’’’sssss % t% t% t% t% to to to to to totototototaaaaalllll NNNNNooooo. of . of . of . of . of FFFFFooooollllliosiosiosiosios ShShShShShaaaaarrrrres Hes Hes Hes Hes Held* eld* eld* eld* eld* % t% t% t% t% to to to to to totototototaaaaalllll ShShShShShaaaaarrrrreseseseses 4 1 55555 2 3 121 93 19 12,310 534 2 1 1 13,086 13,086 13,086 13,086 13,086 13,091 13,091 13,091 13,091 13,091 0.03 0.01 0.040.040.040.040.04 0.02 0.02 0.92 0.71 0.15 94.03 4.08 0.02 0.01 0.01 99.96 99.96 99.96 99.96 99.96 100.00 100.00 100.00 100.00 100.00 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 4,84,024 2,19,607 3,63,693 9,149 41,98,987 5,06,797 260 420 71,944 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 2.23 1.01 1.68 0.04 19.38 2.34 0.00 0.00 0.33 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 2021, 2,15,89,047 equity shares of the Company forming 99.65% of the Share Capital of the Company stand dematerialized. le innnnnssssstttttrrrrruuuuumememememennnnnttttts, cs, cs, cs, cs, cooooonnnnnvvvvveeeeersiorsiorsiorsiorsion dn dn dn dn daaaaattttte ae ae ae ae and lnd lnd lnd lnd likikikikikely i (xi(xi(xi(xi(xi))))) 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 ely i ely i le i le i ely immmmmpppppactactactactact ely i le i ooooon en en en en eqqqqquuuuuititititityyyyy::::: The Company has not issued any GDRs/ADRs/Warrants etc. till date. g activivivivivitititititiesiesiesiesies g act nd hedddddgggggiiiiinnnnng act g act nd he nd he isk a isk or for for for for forrrrreigeigeigeigeign exn exn exn exn exchchchchchaaaaannnnnggggge re re re re risk a isk a isk o (xii))))) CoCoCoCoCommmmmmomomomomodddddititititity py py py py prrrrricicicicice re re re re risk o isk o (xii (xii isk and he g act nd he isk a isk o (xii (xii The Company is into the business of exporting garments and may face foreign exchange fluctuation risk. The Company uses derivative financial instruments, such as forward currency contracts, interest rate swaps, full currency swaps and forward commodity contracts, to hedge its foreign currency risks and commodity price risks, respectively. 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. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss. Pearl Global Industries Limited Annual Report 2020-21 63 Corporate Governance (contd...) (xiii))))) PPPPPlllllaaaaannnnnt lot lot lot lot locccccaaaaatttttioioioioionnnnnsssss::::: (xiii (xiii (xiii (xiii 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.274,Udyog Vihar,Phase-II, Gurgaon-122016 16-17, Udyog Vihar, Phase VI, Khandsa, Gurgaon - 122 004 (Haryana) Plot at Khasra No 15//19 & 22, Village Begumpur Khatola, Gurugram, Haryana – 122001 2/31/,Thirukahukundram Road, Melavalam Village, Madhuranthagam, Taluk, Kancheepuram District- 603303 Plot No. 19A, NTTF Road, Peenya Industrial Area, Bengaluru-560058 vi) vii) Norp Knit Industries Ltd, North Khailkur, P.O. National University, Gazipur-1704 Bangladesh. viii) Norp Knit Industries Ltd- 93, Islampur, Kodda, Nandun, Gazipur-1700, Bangladesh ix) x) Prudent Fashions Ltd. Kaichabari Road, Bypail, Ashulia, Savar, Bangladesh PT Pinnacle Apparels, JL Coaster No. 8, Blok A-15-15, a TEPZ, Kawasan Berikat Lamicitra Tanjung Emas Export Processing Zone,Semarang-50174, Indonesia PT Pinnacle Apparels, JL.Soekarno-Hatta No.55 Km 30.5, Blok KL Dusan Kutan, Rt04 Rw02 Kel. Randugunting, Kec. Bergas, Kabupaten Semarang, Jawa Tengah-50552, Indonesia xi) xii) Pearl Global Vietnam Company Limited, Dinh Tri Commune, Bae Giang City, Bae Giang Province, Vietnam (xiv) (xiv) (xiv) 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 (xiv) (xiv) d Offic e of t he Co A-3, Community Centre, Naraina Industrial Area, Phase-II, New Delhi - 110 028 Registered Office of the Company has been changed as below with effect from 1st May, 2021: C-17/1, Paschimi Marg, Vasant Vihar, New Delhi-110057 r Corrrrrrrrrresesesesespppppooooondendendendendencncncncnceeeee::::: CoCoCoCoCorprprprprpooooorrrrraaaaattttte Offic e Offic e Offic e & Ae & Addrddrddrddrddresesesesess fos fos fos fos for Co e & Ae & A r Co r Co e Office & A e Offic r Co Pearl Tower, Plot No.51, Sector-32 Gurugram - 122 001, Haryana (India) y Commmmmppppplllllaaaaaiiiiinnnnnt, It, It, It, It, Innnnnvvvvvesesesesestttttooooors crs crs crs crs caaaaan cn cn cn cn cooooonnnnntttttact Co IIIIIn cn cn cn cn caaaaase of a se of a se of a se of annnnny Co act Co act Co y Co y Co act Commmmmpppppllllliaiaiaiaiancncncncnce Offic e Offic e Offic e Officeeeeerrrrr::::: se of a act Co y Co e Offic Mr. Mayank Jain Company Secretary Pearl Global Industries Limited Pearl Tower, Plot No.51, Sector-32 Gurugram - 122 001, Haryana (India) Tel. No. : 91 - 124 - 4651714 (xv) CCCCCrrrrreeeeedddddit Rit Rit Rit Rit Raaaaatttttiiiiinnnnngggggsssss (xv) (xv) (xv) (xv) The Company has obtained credit ratings from ICRA Limited. Credit ratings of the Company as at the end of the financial year 2020-21 are given below: g Ageeeeencncncncncyyyyy CCCCCrrrrreeeeedddddit Rit Rit Rit Rit Raaaaatttttiiiiinnnnnggggg g Ag RRRRRaaaaatttttiiiiinnnnng Ag g Ag g Ag ICRA Limited Long term rating : [ICRA] BBB (Stable)Short term rating : [ICRA] A3+ 64 Pearl Global Industries Limited Annual Report 2020-21 Corporate Governance (contd...) 12.12.12.12.12. OOOOOTTTTTHHHHHEEEEER DR DR DR DR DIIIIISSSSSCCCCCLLLLLOOOOOSSSSSUUUUURRRRREEEEESSSSS a) b) c) d) e) f ) g) h) i) j) 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 46 of Notes to Standalone 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. 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 During the financial year 2020-21, 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 2020-21. 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 he fi he fi he finnnnnaaaaancianciancianciancial yea l yea l yea l yearrrrr FFFFFooooor tr tr tr tr the fi he fi l yea ch 31, 2021 ch 31, 2021 eeeeendendendendended Md Md Md Md Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 17.92 11.65 0.75 30.32 30.32 30.32 30.32 30.32 (((((`````/La/La/La/La/Lakkkkkhhhhh))))) FFFFFooooor tr tr tr tr the fi he fi he fi he finnnnnaaaaancianciancianciancial yea l yea l yea l yearrrrr he fi l yea eeeeendendendendended Md Md Md Md Maaaaarrrrrch 31, 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 k) There were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, during the financial year 2020-21. 13.13.13.13.13. The Company has fully complied with all the requirements of the Corporate Governance including the applicable requirements specified in Regulation 17 to 27 and clause (b) to (i) of sub-regulation (20) of Regulation 46. There has been no instance of non-compliance of any requirement of the Corporate Governance Report. I of the She She She She SEEEEEBBBBBI LI LI LI LI Lisisisisistttttiiiiinnnnng Rg Rg Rg Rg Reeeeeggggguuuuulllllaaaaatttttioioioioionnnnnsssss I of t I of t le I t E of Schechechechecheddddduuuuule I le I t E of S cified id id id id in Pn Pn Pn Pn Paaaaarrrrrt E of S t E of S cifie 14.14.14.14.14. NNNNNooooonnnnn-----MMMMMaaaaandndndndndaaaaatttttooooorrrrry Ry Ry Ry Ry Reeeeeqqqqquuuuuiiiiirrrrreeeeemememememennnnnttttts as as as as as ss ss ss ss spppppeeeeecifie cifie le II of t I of t le I t E of S cifie Discretionary requirements are as follows: A. TTTTThe Bhe Bhe Bhe Bhe Boooooaaaaarrrrrddddd Maintenance of Non-Executive Chairman’s Office Presently, the Company is maintaining office of the Non-Executive Chairman. Pearl Global Industries Limited Annual Report 2020-21 65 Corporate Governance (contd...) B. rs Righhhhhtttttsssss rs Rig ShShShShShaaaaarrrrrehoehoehoehoeholdeldeldeldelders Rig rs Rig rs Rig The Company’s Financial Results, Shareholding Pattern and official news releases are displayed on the Company’s website www.pearlglobal.com/investors. n(s) in an an an an audududududit rit rit rit rit reeeeepppppooooorrrrrttttt – there is no modified opinion in the audit report. n(s) i C. MMMMMooooodddddifieifieifieifieified od od od od opppppiiiiinnnnnioioioioion(s) i n(s) i n(s) i D. SSSSSeeeeepppppaaaaarrrrraaaaattttte Pe Pe Pe Pe Posososososttttts of ch e officeeeeerrrrr e offic ief exeeeeecucucucucutttttivivivivive offic e offic ief ex ief ex nd ch s of chaaaaaiiiiirprprprprpeeeeersorsorsorsorson an an an an and ch nd ch s of ch s of ch nd chief ex e offic ief ex nd ch s of ch Presently, the Company has separate post of Non-executive Chairman and Managing Director. E. g of innnnnttttteeeeerrrrrnnnnnaaaaal al al al al audududududitititititooooorrrrr-The internal auditor reports to Audit Committee as and when required. g of i RRRRReeeeepppppooooorrrrrtttttiiiiinnnnng of i g of i g of i de of Condndndndnductuctuctuctuct de of Co de of Co he Co CoCoCoCoCommmmmpppppllllliaiaiaiaiancncncncnce we we we we wititititith th th th th the Co he Co he Code of Co de of Co he Co The Company has adopted a “Code of Conduct for the Directors and Senior Management”. The Code is available on the official website of the Company www.pearlglobal.com/investors. The declaration from the Managing Director regarding compliance with the code by all the Directors and Senior Management forms part of the Report. n Corprprprprpooooorrrrraaaaattttte Ge Ge Ge Ge Govovovovoveeeeerrrrrnnnnnaaaaancncncncnceeeee CoCoCoCoCommmmmpppppllllliaiaiaiaiancncncncnce ce ce ce ce ceeeeerrrrrtttttificificificificificaaaaattttte oe oe oe oe on Co n Con Co n Co A certificate from practicing company secretary 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 2021. Certificate is annexed with this Annual Report. se accccccououououounnnnnt / u 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 t / ut / unclnclnclnclnclaaaaaiiiiimememememed sd sd sd sd suuuuussssspppppeeeeennnnnse ac t / ut / u se ac se ac se accccccououououounnnnnttttt::::: se ac se ac Disclos Disclos se ac se ac Shares remains unclaimed and lying in the IPO escrow A/c of the company for the financial year 2020-21, information is as follows: - Total shares outstanding at the beginning of Financial Year are 420 & total number of shareholders is 20. - 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. 66 Pearl Global Industries Limited Annual Report 2020-21 Corporate Governance (contd...) 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..... ia) Lia) Ltttttddddd..... ia) Lia) L es (Indndndndndia) L es (I CeCeCeCeCennnnntttttrrrrraaaaal Dl Dl Dl Dl Deeeeepppppositositositositositooooorrrrry Sy Sy Sy Sy Seeeeerrrrrvvvvvicicicicices (I es (I es (I 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 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 Pearl Global Industries Limited Annual Report 2020-21 67 Management Discussion and Analysis ECECECECECOOOOONNNNNOOOOOMMMMMIIIIIC OVC OVC OVC OVC OVEEEEERRRRRVVVVVIIIIIEEEEEWWWWW Year 2020 was an unprecedented year. It commenced with a full-blown public health crisis caused by the COVID, a global shutdown and a pandemic that continued throughout the year and spilled into 2021. During the year 2020, the global economy contracted by 3.3%, but it is projected to grow at 6.0% in 2021, and 4.4% in 2022. However, new mutations and fresh waves of the virus have cast a spell of uncertainty on growth forecasts across the world. Nevertheless, an aggressive vaccination drive and policy spend by advanced economies are expected to be the silver lining for accelerating economic recovery. Reopening of economies have enabled bringing back consumer confidence. FY 2020-21 was an exceptional year that started with a nationwide lockdown that continued till June 2020. While this helped control the pandemic, it led the economy into a temporary recession. However, by Q2 FY 2020-21, with the relaxation of lockdown restrictions in a phased manner, businesses had started to regain lost ground. The year 2021 began with the rollout of vaccination raising hopes for a quicker economic recovery. As per the Monetary Policy Report by the Reserve Bank of India (RBI) pegs India’s GDP growth rate for FY 2021-22 at 9.5%. India’s GDP contracted 7.3% in 2020-21, as per Provisional National Income estimates released by the National Statistical Office. The rebound was the result of numerous policy initiatives undertaken by the government and the RBI, including a stimulus package that amounted to 10% of the GDP, liquidity boosting measures, aggressive policy rate cuts, loan moratorium and time-bound resolution for specified sectors. The government accelerated these efforts with inclusive budgetary initiatives such as production linked incentives, ‘Vocal for Local’ schemes, including the Atmanirbhar Bharat Abhiyan, higher investments in infrastructure, tax reforms, labour and land reforms, and amendment of the insolvency and bankruptcy code to promote entrepreneurship and availability of credit. Indicators such as collections from the Goods and Services Tax (GST), Index for Industrial Production (IIP), Purchasing Manager’s Index (PMI), steel and energy demand and auto sales suggest that India’s economic activity is fast reaching pre-COVID-19 levels. A second wave of infection may temporarily dampen recovery, but it is unlikely to destroy the momentum altogether. IIIIINNNNNDDDDDUUUUUSSSSSTTTTTRRRRRY OVY OVY OVY OVY OVEEEEERRRRRVVVVVIIIIIEEEEEWWWWW FFFFFaaaaashshshshshioioioioion in in in in indndndndnduuuuussssstttttrrrrryyyyy For the global fashion industry, valued at US$2.5 trillion, 2020 was one of the worst years on record. During 2020, global fashion sales are estimated to have plummeted between 15-30% in comparison to 2019. There is variation in the pattern in different regional markets, but on the whole, Europe was the worst hit with a sale contraction ranging from 22-35%. US fashion sales are estimated to have declined by 17-32%, while China registered a moderate decline by 7- 20% due to limited impact of the pandemic. The pandemic brought a shift to conscious consumerism, which started prior to the COVID and got accelerated as people’s purchases got more value and need driven, than want and trend driven. Even though the buying capacity was affected due to the challenging times, people were still buying clothes, though more mindfully than before. This included loungewear, athleisure and timeless clothing that would go well even after pandemic is over and when they get back to work. The year 2021 will act as a bridge between an extreme situation and an extended recovery period for the global fashion industry. The year ahead is expected to be a difficult one for some fashion industry participants, while some others are likely to reap benefits from the opportunities presented by the market disruption. The European fashion market is expected to recover by Q2 2022, while the US, with a slower recovery pace, is expected to normalise by Q1 2023, as travel and tourism re-opens. The speed of recovery will also differ across various fashion categories. Value segments and a few geographical markets are expected to witness growth despite the challenges. Comfort, sustainability, and most importantly, highly individual choices as opposed to impersonal, ubiquitous industry trends will be the major driving factors for demand. Fashion players focused on niche offerings, the Asian market and luxury segment may have a competitive edge. AAAAAppppppppppaaaaarrrrrel iel iel iel iel indndndndnduuuuussssstttttrrrrryyyyy The value of the global apparel industry was US$1.5 trillion+ in 2020. The Asia-Pacific region leads the market in demand, with 38% market share, followed by Europe at 26%, North America at 22% and others at 14%. It is 68 Pearl Global Industries Limited Annual Report 2020-21 Management Discussion and Analysis (contd...) estimated that by 2025, the market would grow to US$2.25 trillion. Source: https: //www.statista.com/ topics /5091/apparel market-worldwide/ One prominent trend observed during the year, is that the big luxury groups have recovered quickly from COVID-19, while some of the leading luxury brands have remained financially immune or even profited. As economies open up, apparel industry is expected to showcase a significant growth with a swoosh shaped recovery for the overall markets. Online retail has been thriving since the beginning of the lockdown, which is expected to pave way for established brands and retailers providing a distinct experience to the consumers. IIIIIndndndndnduuuuussssstttttrrrrry chy chy chy chy chaaaaallllllelelelelennnnngggggeseseseses -19 relelelelelaaaaattttteeeeed rd rd rd rd riskiskiskiskisksssss CCCCCOVOVOVOVOVIIIIIDDDDD-19 r -19 r -19 r -19 r The pandemic remains one of biggest challenges till majority of the world’s population is vaccinated. It will continue to disrupt international trade, travel, consumer behaviour and economies. To manage the uncertainties, market players will have to recalibrate their business models to balance agility and change with financial discipline. Global supply chains have been disrupted due to the pandemic. Apparel industry in particular relies on sourcing products manufactured at low-cost countries and ensuring timely availability of the selected merchandise. Manufacturers and suppliers will have to build more sustainable supply chains. The logistics costs have also gone up, due to various factors such as shortage/ unavailability of containers. Rising consumer preference for sustainable fashion Consumers are increasingly preferring sustainable fashion. Growing awareness about the lack of equality in the manufacturing process and the value chain is raising demand for equitably manufactured products. Garment workers, sales assistants and other low-paid workers were the worst impacted during the pandemic. Campaigns have been gathering momentum to provide more dignity, security, and justice to workers. Companies which are found faltering may lose out customers. As per State of Fashion, 2021 report by Business of Fashion (BoF), in association with McKinsey & Company, travel retail sales are likely to take at least two to three years to reach their earlier growth levels. With international tourism remaining subdued and travel disrupted, destination shopping was majorly impacted during the year. Focus on local consumers and their preferences will be key in unlocking new opportunities. The pandemic has resulted in drastic disruptions for the global economy ; however it has also created new opportunities like faster pace digitization, growth of few categories etc. The market players surviving the consolidation and these challenging times will emerge stronger, as they brace themselves for the new opportunities. BBBBBUUUUUSSSSSIIIIINNNNNEEEEESSSSSS OVS OVS OVS OVS OVEEEEERRRRRVVVVVIIIIIEEEEEWWWWW 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. 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, next, Old Navy, MUJI, Bass Pro Shops, Belk, Ross, ZARA, Bershka, American Eagle Outfitters, Joe Fresh, Walmart Canada, NORDSTROM, Kroger, PVH, TOMMY HILFIGER , Calvin Klein, CHAPS, PRIMARK, Sainsbury’s, MANGO, TALBOTS, TARGET, Kmart, MARKS & SPENCER , LANE BRYANT, LOFT, ANN TAYOR, Brooks Brothers, Quince among others. Pearl Global Industries Limited Annual Report 2020-21 69 Management Discussion and Analysis (contd...) 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. acilacilitititititiesiesiesiesies acilacil 1.1.1.1.1. OOOOOuuuuur mr mr mr mr maaaaannnnnuuuuufffffactactactactactuuuuurrrrriiiiinnnnng fg fg fg fg facil CouCouCouCouCounnnnntttttrrrrryyyyy India Bangladesh Indonesia Vietnam TTTTTotototototaaaaalllll FFFFFactactactactactooooorrrrriesiesiesiesies 6 3 2 1 1212121212 rs of Stttttrrrrreeeeennnnngggggttttthhhhhsssss rs of S 2.2.2.2.2. OOOOOuuuuur Pr Pr Pr Pr Pililililillllllaaaaars of S rs of S rs of S a)a)a)a)a) A MA MA MA MA Muuuuulllllttttti Li Li Li Li Looooocccccaaaaatttttioioioioion Mn Mn Mn Mn Maaaaannnnnuuuuufffffactactactactactuuuuurrrrriiiiinnnnng Cg Cg Cg Cg Caaaaapppppabababababilililililititititityyyyy 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 Company have 3 (three) design office in USA, UK and Spain 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. Our designers work and collaborate on 3D design platforms from Browzwear, CLO and Optitex. ccccc))))) g Commmmmpppppllllliaiaiaiaiancncncncnce ace ace ace ace acrrrrrosososososs as as as as allllll Fl Fl Fl Fl Factactactactactooooorrrrriesiesiesiesies::::: g Co SSSSStttttrrrrrooooonnnnng Co g Co g Co Compliances in all our facilities are directly linked to the corporate office, which drives all strategy of social compliance, new initiatives and sustainability directly from the top. The corporate compliance acts as a communication hub and control tower for all our customers, providing them with a single point of contact. Strong compliances are established and maintained in all our facilities in line with international standards and several channels are available in each facility to address any concerns. ddddd))))) SSSSStttttrrrrrooooonnnnng fog fog fog fog focucucucucus os os os os on on on on on opppppeeeeerrrrraaaaatttttioioioioionnnnns dr s dr s dr s drivivivivives efficie es efficie es efficie es efficiencncncncncyyyyy::::: s dr es efficie i) Strong Analytics to drive effective fact based decision making. ii) Shift from tactical to strategic approach e.g. Strategic relationship with key clients. iii) Cultural change: Driving a lead mindset; First Time Right. iv) investment Infrastructure: Reducing Man-Machine Ratio by in-line machinery upgradation; capacity expansion to drive economies of scale. in 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 machine jeanologia. v) 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. 70 Pearl Global Industries Limited Annual Report 2020-21 Management Discussion and Analysis (contd...) 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. IIIII MMMMM PPPPPAAAAACCCCC T OT OT OT OT OF CF CF CF CF CO VO VO VO VO VIIIIIDDDDD -19 P -19 PAAAAA NNNNN DDDDD EEEEE MMMMM IIIII C OC OC OC OC ONNNNN -19 P -19 P -19 P CCCCCOOOOOMMMMMPPPPPAAAAANNNNNYYYYY Due to the outbreak of COVID-19 Pandemic and subsequent lockdown ordered by the Central and State Government(s) in India, the manufacturing facilities of the Company remained suspended during the period of lockdown. The Company in compliance with necessary instructions and guidelines, resumed its operations post lifting of lockdown in a phased manner, while ensuring health and safety of all the stakeholders. This situation resulted in temporary disturbance in the economic activities through interruption in manufacturing processes, supply chain etc. during the year ended March 31, 2021. Further, the recent second wave of COVID-19 has resulted in partial lockdown/ restriction in various states. The impact of the pandemic is dependent on the situations as they evolve and hence may be different from that estimated as at the date of approval of these standalone and consolidated financial results. The Company is closely monitoring the impact of the aforesaid pandemic and believes that there will not be any adverse impact on the long term operations and performance of the Company. BBBBBUUUUUSSSSSIIIIINNNNNEEEEESSSSSS PS PS PS PS PEEEEERRRRRFFFFFOOOOORRRRRMMMMMAAAAANNNNNCCCCCEEEEE The company has gross income of ` 795.48 Crore compared to ` 858.72 Crore in previous financial year and Net Profit of ` 0.77 Crore as compared to Net Profit of ` 5.00 Crore in the previous financial year on the standalone basis and consolidated income of ` 1,514.43 Crore compared to ` 1,734.18 in the previous financial year and net profit of ` 17.48 Crore as compared to net profit of ` 21.72 crore in the previous financial year. SSSSS E GE GE GE GE GMMMMM EEEEE NNNNN T WT WT WT WT WIIIII SSSSS E PE PE PE PE PEEEEE RRRRR FFFFF OOOOO RRRRR MMMMM AAAAA NNNNN CCCCC E OE OE OE OE OF TF TF TF TF THHHHH EEEEE CCCCCOOOOOMMMMMPPPPPAAAAANNNNNYYYYY The Company’s is operating in mainly three geographical locations and its revenue on basis of geographical segment for the FY 2020-21 are as follows: GGGGGeeeeeooooogggggrrrrraaaaappppphhhhhicicicicicaaaaal Ll Ll Ll Ll Looooocccccaaaaatttttioioioioionnnnn India Bangladesh Hong Kong Others (` in Crore) RRRRReeeeevvvvveeeeennnnnueueueueue 771.66 565.34 782.59 124.33 GGGGGOVOVOVOVOVEEEEERRRRRNNNNNMMMMMEEEEENNNNNT IT IT IT IT INNNNNIIIIITTTTTIIIIIAAAAATTTTTIIIIIVVVVVEEEEE GGGGGovovovovoveeeeerrrrrnnnnnmememememennnnnt at at at at apppppppppprrrrrovovovovoves ces ces ces ces cooooonnnnntttttiiiiinnnnnuuuuuaaaaatttttioioioioion of R n of R n of R n of Rebebebebebaaaaattttte of S e of S e of S e of Stttttaaaaattttteeeee n of R e of S nd Cennnnntttttrrrrraaaaal tl tl tl tl taaaaaxxxxxes aes aes aes aes and Lnd Lnd Lnd Lnd Leeeeevvvvvies (R ies (R ies (R ies (RoooooSSSSSCCCCCTTTTTL) oL) oL) oL) oL) on Exn Exn Exn Exn Expppppooooorrrrrt of aaaaand Ce nd Ce nd Ce t of t of t of ies (R nd Ce t of AAAAAppppppppppaaaaarrrrrel/ Gel/ Gel/ Gel/ Gel/ Gaaaaarrrrrmememememennnnnttttts as as as as and Mnd Mnd Mnd Mnd Madeadeadeadeade-----uuuuupspspspsps The Union Cabinet has given its approval for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated 8th March 2019, on exports of Apparel/ Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters. The scheme will continue till 31st March 2024. The other Textiles products (excluding Chapters-61, 62 & 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, under RoDTEP along with other products as finalised by Department of Commerce from the dates which shall be notified in this regard. Continuation of RoSCTL for Apparel/Garments and Made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters. Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs. r Expppppooooorrrrrttttteeeeed Pd Pd Pd Pd Prrrrroooooddddductuctuctuctuctsssss r Ex r Ex nd fo TTTTTaaaaax Rx Rx Rx Rx Refefefefefuuuuund fo nd fo nd for Ex r Ex nd fo It is a globally accepted principle that taxes and duties should not be exported, to enable a level playing field in the international market for the exporters. In addition, to import duties and GST which are generally refunded, there are various other taxes/duties that are levied by Central, State and Local Government which are not refunded to the exporters. These taxes and levies get embedded in the price of the ultimate product being exported. Such embedded Pearl Global Industries Limited Annual Report 2020-21 71 Management Discussion and Analysis (contd...) taxes and levies increase the price of Indian Apparel and Made-ups and make it difficult for them to compete in the international market. manufacturers to integrate more deeply into the global value chain for reviving growth and generating employment in the textile industry. Realizing the importance of refund of embedded taxes, cesses and duties, the Ministry of Textiles first launched a scheme by the name of Rebate of State Levies (ROSL) in 2016. In this scheme the exporters of apparel, garment and made-ups were refunded embedded taxes and levies through the budget of the Ministry of Textiles. In 2019, the Ministry of Textiles notified a new scheme by the name RoSCTL. Under this scheme, the exporters are issued a Duty Credit Scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic Customs duty for the import of equipment, machinery or any other input. Just one year after launch of RoSCTL the pandemic set in and it has been felt that there is a need to provide some stable policy regime for the exporters. In the textiles industry, buyer places long term orders and exporters have to chalk out their activities well in advance, it is important that the policy regime regarding export for these products should be stable. Keeping in view the same, the Ministry of Textiles has decided to continue the scheme of RoSCTL upto 31st March, 2024 independently as a separate scheme. Continuation of RoSCTL scheme will help generate additional investment and give direct and indirect employment to lakhs especially women. PPPPPrrrrroooooddddductuctuctuctuctioioioioion Ln Ln Ln Ln Liiiiinnnnnkkkkkeeeeed Id Id Id Id Incncncncnceeeeennnnntttttiviviviviveeeee To boost local manufacturing and exports to shore up employment in the Textile Sector, the government has approved the Production Linked Incentive (PLI) Scheme for the textile sector, with a total outlay of ` 10,680 Crore under the aegis of Atmanirbhar Bharat Abhiyan. The focus of the scheme is proposed to be on Man-Made Fibre (MMF) apparel and technical textiles. It is expected that the scheme could cover forty product categories under MMF, whereas ten under the technical textile segment. It is likely that incentives would be provided to both greenfield and brownfield investments under this scheme, between 3 to 11 per cent of the incremental revenues’ year-on-year for five years. By focusing on these two non-conventional segments, the PLI scheme for textiles. OOOOOUUUUUTTTTTLLLLLOOOOOOOOOOKKKKK We maintain a cautious outlook and believe that the COVID-19 disruption and the uncertainties related to the same will phase out once a significant portion of the population gets vaccinated. We also believe that getting the fashion industry back on the growth track would depend on the pace of digital adoption and agility of brands. We always look for opportunities and are confident that this crisis will also provide tremendous opportunities in the form of learnings, market consolidation and other developments. Our continuity of the asset light model, expansion in margins and turnaround of manufacturing will enable us to generate higher returns on capital employed. Our focus on investing in sustainable and tech-enabled businesses is expected to also generate higher returns than our cost of capital and is expected to create long-term value for our shareholders. RRRRRIIIIISSSSSKKKKKS & CS & CS & CS & CS & COOOOONNNNNCCCCCEEEEERRRRRNSNSNSNSNS Risks are an integral part of any business, and it is essential that adequate structures and processes are created to identify and effectively mitigate the same. While delivering on our commitments, the safety of all the stakeholders which are involved is of utmost importance to the Company. The Company continuously monitors the environment in which it operates to assess any new uncertainties and risks that may emerge and take active steps to mitigate them. There are no risks that threaten the going concern of the Company. The Company has identified Business dynamics risk, Market Risks / Industry Risks, Political Environment risks, Disaster Risks, Liquidity Risks, Credit Risks, Foreign Exchange Risks, Human Resource Risks, Environmental Risk and Legal Risks and a detailed action plan to mitigate the identified risk and concerns is in place. Further, the Board of Directors has constituted Risk Management Committee in Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with following members: 1. Mr. Pulkit Seth 2. Mr. Abhishek Goyal; and It is expected that the scheme would incentivize the textile 3. Ms. Neha Khanna 72 Pearl Global Industries Limited Annual Report 2020-21 Management Discussion and Analysis (contd...) The Risk Management Committee is responsible to maintain oversight and monitor the effectiveness of risk management activities. 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 within built controls to facilitate all of the above. 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 observations 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 technology 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. As on March 31, 2021, 5126 employees were on Company’s role. r Commmmmpppppaaaaannnnnyyyyy’’’’’s Ps Ps Ps Ps Prrrrrooooogggggrrrrraaaaammmmmsssss;;;;; FFFFFooooor Co r Co r Co r Commmmmmmmmmuuuuunnnnnititititity ouy ouy ouy ouy our 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) LLLLLeade eade eade eadershrshrshrshrshiiiiip Hp Hp Hp Hp Hiiiiirrrrriiiiinnnnnggggg – Hiring top notch leadership team eade in the UK and US offices e) EEEEEmmmmmppppplololololoyeyeyeyeyee We We We We Welelelelelfffffaaaaarrrrre e e e e – Company paid COVID 19 vaccination drive for all our employees across the India Pearl Global factories f ) IIIIInnnnnitititititiaiaiaiaiatttttiiiiinnnnng vg vg vg vg vaaaaarrrrriouiouiouiouious ps ps ps ps prrrrrojojojojojeeeeectctctctcts s s s s – a. Reviewing Pearl Global brand, b. Revamping the website, c. Reviewing the Mission and Vision of the organisation d. Initiating the Performance Management process for all employees across all locations e. Digitising HR processes g) 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 Pearl Global Industries Limited Annual Report 2020-21 73 Management Discussion and Analysis (contd...) 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) Interest Coverage Ratio FFFFFY 2020-21 Y 2020-21 Y 2020-21 Y 2020-21 Y 2020-21 68.71 78.40 1.55 FFFFFY 2019-20 Y 2019-20 Y 2019-20 Y 2019-20 Y 2019-20 43.08 82.21 2.53 % C% C% C% C% Chhhhhaaaaannnnngggggeeeee RRRRReaeaeaeaeasososososon fon fon fon fon for chr chr chr chr chaaaaannnnnggggge ie ie ie ie in Rn Rn Rn Rn Raaaaatttttioioioioio 59.51% High volume of shipment during Q4 led to increase -4.64% Effective Inventory management helped to maintain level of inventory -39.01% Due to lockdown and several restrictions imposed by Govt. amid COVID-19 affected the profitability, therefore adversely impacted interest coverage ratio Current Ratio Debt Equity Ratio 1.33 0.33 1.19 0.23 12.10% Better Management of Working capital. 43.18% Due to increase in long term borrowings (ECLGS) affected the ratio. There is a corresponding decrease in Short Term Borrowing Operating Profit Margin 1.30% 2.49% -47.58% Due to lockdown and several restrictions imposed by Govt. amid COVID-19 affected the profitability. Net Profit Margin 0.10% 0.58% -83.32% Due to lockdown and several restrictions imposed by Govt. amid COVID-19 affected the profitability. Net Worth 30,651.07 29,866.97 2.63% Increase in Net Equity due to INDAS 116 and Hedge Accounting impact. 1 2 3 4 5 6 7 8 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. 74 Pearl Global Industries Limited Annual Report 2020-21 Business Responsibility Report (2020-21) 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 6. Financial Year reported 7. Sector(s) that the Company is engaged in (industrial activity code-wise) Pearl Global Industries Limited C-17/1, Paschimi Marg, Vasant Vihar, New Delhi-110057 www.pearlglobal.com investor.pgil@pearlglobal.com 1st April, 2020 to 31st March 2021 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 12 undertaken by the Company (a) Number of International Locations (b) Number of National Locations 6 6 10. Markets served by the Company -Local/State/ International National/International : FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL DL DL DL DL DEEEEETTTTTAAAAAIIIIILLLLLS OS OS OS OS OF TF TF TF TF THHHHHE CE CE CE CE COOOOOMMMMMPPPPPAAAAANNNNNYYYYY SSSSSECECECECECTTTTTIIIIIOOOOON BN BN BN BN B: FI : FI : FI : FI 1. Paid up Capital (`) 2. Total Turnover (`) 3. Total profit after taxes (`) 21,66,39,370 ` 77,140.04 Lakh ` 77.40 Lakh 4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%) 2.43% (` 27.10 Lakh) of average net profit of the Company for last three financial year calculated as per section 198 of the Companies Act, 2013 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 Pearl Global Industries Limited Annual Report 2020-21 75 Business Responsibility Report (2020-21) (contd...) xii. DSSP Global Limited 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 : 00003044 : Mr. Pulkit Seth : Managing Director 1. DIN Number 2. Name 3. Designation (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? Indicate the link for the policy to be viewed online? 6. 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 http://www.pearlglobal.com/investors/policy/ 76 Pearl Global Industries Limited Annual Report 2020-21 Business Responsibility Report (2020-21) (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 P1P1P1P1P1 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 Not Applicable available 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 Board may review the BR initiatives and other related policies on regular intervals as and when required. (b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published? The Business Responsibility Report would be published annually on the website of Company at www.pearlglobal.com SSSSSECECECECECTTTTTIIIIIOOOOON EN EN EN EN E: P: P: P: P: PRRRRRIIIIINNNNNCCCCCIIIIIPPPPPLLLLLEEEEE-----WWWWWIIIIISSSSSE PE PE PE PE PEEEEERRRRRFFFFFOOOOORRRRRMMMMMAAAAANNNNNCCCCCEEEEE ics, Tics, Trrrrraaaaannnnnssssspppppaaaaarrrrreeeeencncncncncy ay ay ay ay and And And And And Accccccccccououououounnnnntttttabababababilililililititititityyyyy ics, Tics, T uct and gnd gnd gnd gnd govovovovoveeeeerrrrrn tn tn tn tn thehehehehemmmmmselselselselselvvvvves wes wes wes wes wititititith Eh Eh Eh Eh Ettttthhhhhics, T uct a ld cooooondndndndnduct a uct a ld c ld c ses shou le 1: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 1: B PPPPPrrrrriiiiincincincincincippppple 1: B le 1: B ses should c uct a ld c ses shou le 1: B 1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures / Suppliers / Contractors / NGOs /Others? 2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so. No The policy is expected to be adhered by the other stakeholders. During the financial year 2020-21, the Company has not received any complaints. Pearl Global Industries Limited Annual Report 2020-21 77 Business Responsibility Report (2020-21) (contd...) PPPPPrrrrriiiiincincincincincippppple 2: B e safe and cnd cnd cnd cnd cooooonnnnntttttrrrrribuibuibuibuibuttttte te te te te to so so so so suuuuussssstttttaaaaaiiiiinnnnnabababababilililililititititity ty ty ty ty thhhhhrrrrrouououououggggghouhouhouhouhouttttt e safe a nd serrrrrvvvvvicicicicices tes tes tes tes thhhhhaaaaat at at at at arrrrre safe a e safe a nd se ide goooooooooods ads ads ads ads and se nd se ide g ses should pld pld pld pld prrrrrovovovovovide g ide g ses shou le 2: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 2: B le 2: B le 2: B e safe a nd se ide g ses shou ife cycleycleycleycleycle ife c ife c tttttheiheiheiheiheir lr lr lr lr life c ife c 1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities. 2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product(optional): (a) Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain? (b) Reduction during usage by consumers (energy, water) has been achieved since the previous year? 3. Does the company have procedures in place for sustainable sourcing (including transportation)? (a) If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so. 4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? (a) If yes, what steps have been taken to improve their capacity and capability of local and small vendors? 5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so. The Company is in the business of manufacturing of wearing apparel and all the applicable laws relating to the manufacturing of wearing apparels including environmental laws are duly complied. The Company is committed to environment sustainably. The Company works towards reduction and optimal utilization of energy, water, raw material, etc. by incorporating new techniques and innovative ideas. The Company’s products do not have any broad based impact on energy and water consumption by consumers. However, the Company on continuous basis takes several measures to conserve the consumption of energy and water. The Company is committed to reduction of waste, conservation of raw material and pursuing zero pollution through various initiatives, technological upgradation and improvement projects. The Company is in process of setting procedures for sustainable sourcing. The Company prefers local & small producers for various inputs. The Product and waste are scraped (being non recyclable) g of allllll el el el el emmmmmppppplololololoyeyeyeyeyeeseseseses g of a ses should pld pld pld pld prrrrrooooomotmotmotmotmote te te te te the whe whe whe whe welelelelellllllbbbbbeieieieieinnnnng of a g of a ses shou le 3: Buuuuusisisisisinesnesnesnesnesses shou ses shou le 3: B PPPPPrrrrriiiiincincincincincippppple 3: B le 3: B g of a ses shou le 3: B 1. Please indicate the Total number of employees. 2. Please indicate the Total number of employees hired on temporary / contractual / casual basis. 5126 7103 3. Please indicate the Number of permanent women employees. 2968 4. Please indicate the Number of permanent employees with NA disabilities 5. Do you have an employee association that is recognized by NA management 78 Pearl Global Industries Limited Annual Report 2020-21 Business Responsibility Report (2020-21) (contd...) 6. What percentage of your permanent employees is members of NA 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 NIL NIL N.A. N.A. 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 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 ld resesesesespppppeeeeect tct tct tct tct the ihe ihe ihe ihe innnnnttttteeeeerrrrresesesesesttttts of s of s of rs, es rs, es rs, espppppeeeeeciaciaciaciaciallllllylylylyly le 4: B le 4: B le 4: Buuuuusisisisisinesnesnesnesnesses shou ses shou ses shou ld r ld r ses should r s of rs, es le 4: B ses shou ld r 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 ttttthose w hose w hose w hose w 1. Has the company mapped its internal and external stakeholders? 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. Yes Yes 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. Pearl Global Industries Limited Annual Report 2020-21 79 Business Responsibility Report (2020-21) (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 Identification and assessment of environmental risk are under process. 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. 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 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 installed solar energy plant at its manufacturing plant located at Chennai. 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 g publllllic aic aic aic aic and rnd rnd rnd rnd reeeeeggggguuuuulllllaaaaatttttooooorrrrry py py py py pooooolllllicicicicicyyyyy, shou ses, wses, whehehehehen en en en en ennnnngggggaaaaagggggeeeeed id id id id in in in in in innnnnflflflflflueueueueuencincincincincinnnnng pub , shou , shou ld do so i ld do so i ld do so in a rn a rn a rn a rn a resesesesespppppooooonnnnnsibsibsibsibsiblelelelele g pub g pub le 7: B le 7: B le 7: Buuuuusisisisisinesnesnesnesnesses, w ses, wses, w , should do so i , shou ld do so i 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 80 Pearl Global Industries Limited Annual Report 2020-21 Business Responsibility Report (2020-21) (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 ` 27.10 Lakh towards its share of CSR obligations during the financial year 2020-21. 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 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 ld ennnnngggggaaaaaggggge we we we we wititititith ah ah ah ah and pnd pnd pnd pnd prrrrrovovovovovide v ide v ide v le 9: B le 9: B le 9: Buuuuusisisisisinesnesnesnesnesses shou ses shou ses shou ld eld e ld e ses should e ide v le 9: B ses shou 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. Buyers are reputed Retail Chains and we do get their feedback on consumer fashion trends and feedback Pearl Global Industries Limited Annual Report 2020-21 81 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 2021, 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 have 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 2021. 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) UDIN: F004482C000779476 Place: Gurugram Date: 13.08.2021 82 Pearl Global Industries Limited Annual Report 2020-21 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, 2021. Place: Gurugram Date : June 21, 2021 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 Narendra Kumar Somani, 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, 2021 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 : June 21, 2021 (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) g Dirrrrreeeeectctctctctooooorrrrr g Di MMMMMaaaaannnnnaaaaagggggiiiiinnnnng Di g Di g Di (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Ka Ka Ka Ka Kuuuuummmmmaaaaar Sr Sr Sr Sr Sooooommmmmaaaaannnnniiiii))))) l Officeeeeerrrrr l Offic ief Fief Fiiiiinnnnnaaaaancianciancianciancial Offic l Offic ief Fief F CCCCChhhhhief F l Offic Pearl Global Industries Limited Annual Report 2020-21 83 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 C-17/1, Paschimi Marg, Vasant Vihar, New Delhi-110057 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 L ies Lies Liiiiimmmmmitititititeeeeeddddd, having CIN L74899DL1989PLC036849 and having registered office at C-17/1, Paschimi Marg, ies Lies L Vasant Vihar, New Delhi-110057, (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, 2021 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..... NNNNNaaaaame of t me of t me of t he Di he Di he Dirrrrreeeeectctctctctooooorsrsrsrsrs me of the Di me of t he Di Mr. Deepak Seth Mr. Pulkit Seth Mr. Chittranjan Dua Mr. Rajendra Kumar Aneja Mrs. Shifalli Seth Mr. Anil Nayar Mr. Abhishek Goyal Mrs. Madhulika Bhupatkar Mr. Uma Shankar Kaushik 1 2 3 4 5 6 7 8 9 10 Mr. Shailesh Kumar DDDDDesigesigesigesigesignnnnnaaaaatttttioioioioionnnnn Chairman Managing Director Independent Director Independent Director Whole-time Director Independent Director Independent Director Independent Director Whole-time Director Whole-time Director DDDDDIIIIINNNNN 00003021 00003044 00036080 00731956 01388430 01390190 01928855 08712718 06867819 08897225 DiDiDiDiDirrrrreeeeectctctctctooooor Si r Si r Si r Sincncncncnceeeee r Si 22.03.1994 01.11.2004 12.09.2006 12.09.2006 19.01.2012 19.01.2012 26.05.2017 18.03.2020 28.07.2020 07.10.2020 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 (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: 7th June, 2021 UDIN: F004482C000428411 84 Pearl Global Industries Limited Annual Report 2020-21 Independent Auditor’s Report To The Members of Pearl Global Industries Limited he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss he Co he Co it of t RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ahe Ahe Ahe Ahe Audududududit of t it of t it of the Co he Co it of t OpOpOpOpOpiiiiinnnnnioioioioionnnnn We have audited the accompanying consolidated financial statements of PPPPPeaeaeaeaearrrrrl Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrriesiesiesiesies LLLLLiiiiimmmmmitititititeeeeeddddd (((((hereinafter 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, 2021, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the year ended on that date, and notes to the consolidated financial statement, including a summary of the 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 and based on the consideration of report of other auditors on separate financial statements of subsidiaries audited by the other auditors, the aforesaid consolidated 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 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, 2021, the consolidated profit, consolidated changes in equity and its consolidated cash flows for the year ended on that date. BBBBBaaaaasis fo sis fo sis fo r Op r Op r Opiiiiinnnnnioioioioionnnnn sis for Op sis fo r Op We conducted our audit of the 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 obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our opinion on the consolidated financial statements. sis of Maaaaatttttttttteeeeerrrrr sis of M EEEEEmmmmmppppphhhhhaaaaasis of M sis of M sis of M We draw attention to Note 27 of the financial statements which states that export incentives under the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme applicable with effect from January 1, 2021 amounting to ‘ 421.16 Lakh has been recognized by the Holding Company on the basis of certain assumptions including previous applicable rates, as the rates are yet to be notified under the said scheme. Our opinion is not modified in respect of 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, 2021. 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. 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. Pearl Global Industries Limited Annual Report 2020-21 85 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited The results of audit procedures performed by us and by other auditors of components not audited by us, as reported by them in their audit reports furnished to us, including those procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements. KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs AAAAAdededededeqqqqquuuuuacacacacacy ay ay ay ay and cnd cnd cnd cnd cooooommmmmpppppletletletletleteeeeenesnesnesnesness of d es of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy es of R isclosuuuuurrrrres of R es of R isclos isclos s of d s of d s of disclos es of R isclos s of d sactioioioioionnnnnsssss sact TTTTTrrrrraaaaannnnnsact sact sact The Group 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 due to the following reasons: - the significance of transactions with related parties during the year ended March 31, 2021; and - Related party transactions are subject to compliance and disclosure requirement under the Companies Act, 2013 and Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India. it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr Our procedures included the following steps: Obtaining an understanding of policies and procedures in respect of identification of related parties and transactions with them. We also traced the related parties from declaration given by directors and financial statements of the subsidiaries, wherever applicable. Read the minutes of the meetings of Board of Directors and Audit Committee and verified that the transactions are approved in accordance with internal procedures and the applicable regulations. Tested on a sample basis the arrangements between the related parties along with supporting documents to evaluate the assertions that the transactions were at arm’s length and in the ordinary course of business. Evaluated and tested on a sample basis the rights and obligations of the related parties and assessed whether the transactions were recorded appropriately and disclosed. We have also relied upon the audited financial statements of the subsidiaries and audit reports issued thereupon. Also, we have reviewed the signed component instructions received from Statutory Auditors of the subsidiaries as per SA 600. Our procedures as mentioned above did not identify any findings that are significant for the consolidated financial statements as whole in respect of accounting, presentation and disclosure of Related Party Transactions. n Con Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttts as as as as and And And And And Audududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Reeeeepppppooooorrrrrttttts ts ts ts ts theheheheherrrrreeeeeooooonnnnn n Con Co IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioion otn otn otn otn otheheheheher tr tr tr tr thhhhhaaaaan Co The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements and our auditor’s report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s report. 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 when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the 86 Pearl Global Industries Limited Annual Report 2020-21 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss he Co hose Chhhhhaaaaargrgrgrgrgeeeeed wd wd wd wd wititititith Gh Gh Gh Gh Govovovovoveeeeerrrrrnnnnnaaaaancncncncnce foe foe foe foe for tr tr tr tr the Co he Co hose C RRRRResesesesespppppooooonnnnnsibsibsibsibsibilililililititititity of My of My of My of My of Maaaaannnnnaaaaagggggeeeeemememememennnnnt at at at at and Tnd Tnd Tnd Tnd Those C hose C he Co hose C 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 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 Company 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 also responsible for overseeing their financial reporting process of the Group. he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss AAAAAudududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititities fo ies fo ies fo ies for tr tr tr tr the Ahe Ahe Ahe Ahe Audududududit of t it of t it of t he Co he Co it of the Co ies fo it of t he Co Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company and Subsidiaries which are incorporated in India has adequate internal financial controls with reference to the financial statements in place and the operating effectiveness of such controls. Pearl Global Industries Limited Annual Report 2020-21 87 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 ability of the Group 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 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 are 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, 2021 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. OOOOOtttttheheheheher Mr Mr Mr Mr Maaaaatttttttttteeeeersrsrsrsrs (a) We did not audit the financial statements / financial information of four subsidiaries included in the consolidated financial statements, whose financial statements reflect total assets (before eliminating of inter-company transaction of ` 20,287.15 lakh) of ` 85,045.86 lakh, total revenues (before eliminating of inter-company transaction of ` 21,699.71 lakh & ` 65,729.09 lakh) of ` 49,632.98 lakh & ` 147,791.60 lakh, total net profit after tax (before eliminating of inter-company transaction of ` 14.94 lakh & ` 2.31 lakh) of ` 1,099.22 lakh & ` 1,671.98 lakh and total comprehensive income (before eliminating of inter-company transaction of ` 37.74 lakh & ` 25.10 lakh) of ` 1,169.08 lakh & ` 901.16 lakh for the quarter & year ended March 31, 2021 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 statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, and our report in terms of Regulation 88 Pearl Global Industries Limited Annual Report 2020-21 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited 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 reviewed by other auditors under generally accepted auditing standards applicable in their respective 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. (c) The consolidated financial statements do not include the financial statement of one subsidiary for the year ended March 31, 2021, as the same has gone into voluntary liquidation and due to the reason as explained in Note no. 51 of the consolidated financial statement. According to the information and explanations given to us by the Management, financial statement of this subsidiary do not have any material impact on the consolidated results of the Group. Our conclusion on the Statement is not modified in respect of this matter. 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. RRRRReeeeepppppooooorrrrrt ot ot ot ot on On On On On Otttttheheheheher Lr Lr Lr Lr Leeeeegggggaaaaal al al al al and Rnd Rnd Rnd Rnd Reeeeeggggguuuuulllllaaaaatttttooooorrrrry Ry Ry Ry Ry Reeeeeqqqqquuuuuiiiiirrrrreeeeemememememennnnntttttsssss 1. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the auditor on a separate financial statement and the other information of the subsidiaries, as noted in the ‘Other Matters’ paragraph, we report to the extent applicable that: a) We/ the other auditors whose reports we have relied upon have sought and 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, 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 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 Rule 7 of the Companies (Accounts) Rules, 2014. e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2021 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, 2021 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..... Pearl Global Industries Limited Annual Report 2020-21 89 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited 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 according to the explanation given to us and based on the report of other auditors as 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 No. 46 of the Standalone financial statements. ii. The Group did not have any material foreseeable losses on long-term contracts including derivative contracts during the year ended March 31, 2021. 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, 2021. 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, 2021 has been paid/ provided by holding Company and its subsidiaries incorporated in India to their directors in accordance with the provisions of Section 197 read with Schedule V of the Act. FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co a & Co a & Co..... a & Co Chartered Accountants, Firm’s Registration Number 008352N k Agaaaaarrrrrwwwwwaaaaalllll))))) (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Ag k Ag k Ag Partner Membership Number 073696 UUUUUDDDDDIIIIIN: 21073696A N: 21073696A N: 21073696A N: 21073696AAAAAAAAAAAAAAAABBBBBI1319 I1319 I1319 I1319 N: 21073696A I1319 Place of Signature: New Delhi Date: 21.06.2021 90 Pearl Global Industries Limited Annual Report 2020-21 Annexure ‘A’ to the Independent Auditors’ Report he Connnnnsososososolllllidididididaaaaattttteeeeed Fd Fd Fd Fd Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnt of P he Co t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the Co he Co t of e AAAAAnnnnnnexnexnexnexnexuuuuurrrrre ‘e ‘e ‘e ‘e ‘AAAAA’ t’ t’ t’ t’ to to to to to the Ihe Ihe Ihe Ihe Indendendendendepppppeeeeendendendendendennnnnt At At At At Audududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Reeeeepppppooooorrrrrt of e t of e t of Peaeaeaeaearrrrrlllll t of P t of P he Co t of e t of P GloGloGloGloGlobbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ihe Ihe Ihe Ihe Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co n 3 of Seeeeectctctctctioioioioion 143 of t n 3 of S ) of Sububububub-se-se-se-se-sectctctctctioioioioion 3 of S n 3 of S ) of S se (se (iiiii) of S ) of S se (se ( l Connnnntttttrrrrroooools uls uls uls uls undendendendender Cr Cr Cr Cr Clllllaaaaauuuuuse ( l Co l Co he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act,ct,ct,ct,ct, he Co he Co n 143 of t n 143 of t n 143 of the Co n 3 of S ) of S l Co he Co n 143 of t 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, 2021, 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 companies, 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 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 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 Holding Company’s internal financial controls with reference to these consolidated financial statements. l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to fio fio fio fio finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss l Co g of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co g of I MMMMMeaeaeaeaeannnnniiiiinnnnng of I g of I l Co g of I A company’s internal financial control with reference to 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 (1) pertain to the maintenance of records that, Pearl Global Industries Limited Annual Report 2020-21 91 Annexure ‘A’ to the Independent Auditors’ Report (contd...) 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. 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 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, 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, 2021, 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 two 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’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) k Ag k Ag k Ag Partner Membership Number 073696 N: 21073696AAAAAAAAAAAAAAAABBBBBI1319 I1319 I1319 N: 21073696A UUUUUDDDDDIIIIIN: 21073696A N: 21073696A I1319 I1319 N: 21073696A Place of Signature: New Delhi Date: 21.06.2021 92 Pearl Global Industries Limited Annual Report 2020-21 Consolidated Balance Sheet as at March 31, 2021 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 of use asset (c) Investment properties (d) Goodwill (e) (f ) Other Intangible assets Financial assets (g) (i) (ii) (iii) Other financial assets Investment Loans Non current tax assets (net) (h) Deferred tax assets (net) (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 (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Other Bank balances (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 to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrrehoehoehoehoeholdeldeldeldeldersrsrsrsrs le t le t 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) Lease Liabilities (ii) (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 (i) Borrowings (ii) Lease Liabilities (iii) Trade payables (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 Total outstanding due of micro enterprises and small enterprises Total outstanding due of creditors other than micro enterprises and small enterprises 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: June 21, 2021 NNNNNotototototeeeee NNNNNooooo..... 4 5 48 6 7 8 9 10 11 12 13 14 15 9 16 17 18 10 11 14 19 20 21 48 22 23 12 24 21A 48 25 22 24 23 26 3 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 21,379.87 4,701.46 9,802.36 6,054.60 1,756.13 54.08 4,735.54 2,165.44 1,219.95 466.99 771.37 209.62 -------------------------------------------- 53,317.41 53,317.41 53,317.41 53,317.41 53,317.41 -------------------------------------------- 27,876.97 754.38 24,217.21 9,471.34 2,233.21 1,707.73 89.24 9,731.09 -------------------------------------------- 76,081.16 76,081.16 76,081.16 76,081.16 76,081.16 -------------------------------------------- 129,398.57 129,398.57 129,398.57 129,398.57 129,398.57 =================== 2,166.39 49,555.07 -------------------------------------------- 51,721.47 51,721.47 51,721.47 51,721.47 51,721.47 1,293.82 -------------------------------------------- 53,015.28 53,015.28 53,015.28 53,015.28 53,015.28 -------------------------------------------- 12,462.33 6,531.37 137.28 2,310.12 - 3,013.35 -------------------------------------------- 24,454.45 24,454.45 24,454.45 24,454.45 24,454.45 -------------------------------------------- 19,990.64 863.57 481.71 24,195.13 5,456.74 738.57 109.04 93.44 -------------------------------------------- 51,928.84 51,928.84 51,928.84 51,928.84 51,928.84 -------------------------------------------- 129,398.57 129,398.57 129,398.57 129,398.57 129,398.57 =================== 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 =================== d of Dirrrrreeeeectctctctctooooors of P l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo 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 rs of P l Glo r & o f of B d of Di (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 Place of Signature: Gurugram Date: June 21, 2021 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Pearl Global Industries Limited Annual Report 2020-21 93 Consolidated Statement of Profit and Loss for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs IIIII IIIIIIIIII IIIIIncncncncncooooomememememe Revenue from operations Other income me (I+II)I)I)I)I) me (I+I TTTTTotototototaaaaal il il il il incncncncncooooome (I+I me (I+I me (I+I ExExExExExpppppeeeeennnnnsessessessesses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, work in progress and stock in trade Finance costs (d) Employee benefits expense (e) (f ) Depreciation and amortization expense (g) Other expenses TTTTTotototototaaaaal exl exl exl exl expppppeeeeennnnnsessessessesses IIIIIIIIIIIIIII ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmms as as as as and tnd tnd tnd tnd taaaaax (Ix (Ix (Ix (Ix (IIIIIIIIIII-----IIIIIVVVVV ))))) ofit/ ( PPPPPrrrrrofit/ ( ofit/ ( ofit/ ( IIIIIVVVVV ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal Il Il Il Il Ittttteeeeemmmmmsssss 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/ ( VVVVV ofit/ ( VVVVVIIIII TTTTTaaaaax exx exx exx exx expppppeeeeennnnnsesesesese::::: (a) Current tax (b) Deferred tax (c) Adjustment of tax relating to earlier periods he year (r (r (r (r (VVVVVIIIIIIIIII-----VVVVVIIIIIIIIIII)I)I)I)I) he yea s) for tr tr tr tr the yea he yea s) fo ofit/(loslosloslosloss) fo s) fo ofit/( VVVVVIIIIIIIIII PPPPPrrrrrofit/( ofit/( he yea s) fo ofit/( VVVVVIIIIIIIIIIIIIII OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooomememememe (((((AAAAA))))) (i) (ii) (i) (B) (B)(B) (B) (B) Items that will not be reclassified to profit or loss (a) Re-measurement gains/ (losses) on defined benefit plans Income tax on items that will not be reclassified to profit or loss Items that will be reclassified to profit or 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 or loss (ii) he yearrrrr, net of t OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea , net of taaaaaxxxxx , net of t , net of t he yea he yea he yea , net of t , net of taaaaaxxxxx , net of t , net of t he yearrrrr, net of t he yea he yea IIIIIXXXXX TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome fome fome fome fome for tr tr tr tr the yea , net of t he yea PPPPPrrrrrofit Aofit Aofit Aofit Aofit Attttttttttrrrrribibibibibititititituuuuuababababable t le tooooo::::: le t le t le t Equity shareholders Non-controlling interests le tooooo::::: OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome ame ame ame ame attttttttttrrrrribuibuibuibuibutttttababababable t le t le t le t Equity shareholders Non-controlling interests TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome ame ame ame ame attttttttttrrrrribuibuibuibuibutttttababababable t le tooooo::::: le t le t le t Equity shareholders Non-controlling interests EEEEEaaaaarrrrrnnnnniiiiinnnnngggggs ps ps ps ps peeeeer shr shr shr shr shaaaaarrrrreeeee: (F: (F: (F: (F: (Facacacacace ve ve ve ve vaaaaalllllue ue ue ue ue ````` 10 p 10 peeeeer shr shr shr shr shaaaaarrrrre)e)e)e)e) 10 p 10 p 10 p 1) 2) Diluted (amount in `) Basic (amount in `) XXXXX NNNNNotototototeeeee NNNNNooooo..... (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2020 ch 31, 2021 ch 31, 2020 ch 31, 2021 27 28 29 30 31 32 33 34 35 36 12 37 38 149,092.65 2,350.49 ---------------------------------------------------------- 151,443.14 151,443.14 151,443.14 151,443.14 151,443.14 ---------------------------------------------------------- 67,737.23 9,337.91 (184.34) 32,534.85 4,125.34 4,410.55 33,611.35 ---------------------------------------------------------- 151,572.89 151,572.89 151,572.89 151,572.89 151,572.89 ---------------------------------------------------------- (129.75) (129.75) (129.75) (129.75) (129.75) (1,265.31) ---------------------------------------------------------- 1,135.56 1,135.56 1,135.56 1,135.56 1,135.56 372.04 (995.74) 10.94 ---------------------------------------------------------- 1,748.32 1,748.32 1,748.32 1,748.32 1,748.32 ---------------------------------------------------------- (48.22) (23.22) (825.45) 173.25 979.45 (342.72) ---------------------------------------------------------- (86.91) (86.91) (86.91) (86.91) (86.91) ---------------------------------------------------------- 1,661.41 1,661.41 1,661.41 1,661.41 1,661.41 ---------------------------------------------------------- 1,727.11 21.21 (63.07) (23.84) 1,664.04 1,664.04 1,664.04 1,664.04 1,664.04 (2.63) (2.63) (2.63) (2.63) (2.63) 7.97 7.97 168,512.58 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 2,047.11 126.80 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 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: June 21, 2021 l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd d of Dirrrrreeeeectctctctctooooors of P rs of Peaeaeaeaearrrrrl Glo rs of P rs of P l Glo l Glo 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 rs of P l Glo r & o f of B d of Di (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 Place of Signature: Gurugram Date: June 21, 2021 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 94 Pearl Global Industries Limited Annual Report 2020-21 Consolidated Statement of changes in equity for the year ended March 31, 2021 - 9 9 9 9 9 3 3 3 3 3 . . . . . 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 , , , , , 2 2 2 2 2 - 9 9 9 9 9 3 3 3 3 3 . . . . . 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 , , , , , 2 2 2 2 2 9 9 9 9 9 3 3 3 3 3 . . . . . 6 6 6 6 6 6 6 6 6 6 1 1 1 1 1 , , , , , 2 2 2 2 2 ) d e t a t s e s i w r e h t o s s e l n u , h k a L ` n i t n u o m A ( lllll aaaaa t t t t t o o o o o TTTTT yyyyy t t t t t i i i i i uuuuu q q q q q E E E E E ggggg nnnnn iiiii lllll lllll ooooo rrrrr ttttt nnnnn ooooo ccccc yyyyy t t t t t i i i i i uuuuu q q q q q E E E E E nnnnn o o o o o i i i i i ttttt aaaaa lllll a a a a a s s s s s nnnnn aaaaa rrrrr TTTTT h h h h h s s s s s aaaaa C C C C C f f f f f o o o o o n n n n n o o o o o i i i i i ttttt rrrrr ooooo PPPPP rrrrr e e e e e h h h h h t t t t t o o o o o h h h h h ggggg u u u u u o o o o o rrrrr hhhhh ttttt ----- nnnnn ooooo NNNNN rrrrr e e e e e h h h h h ttttt O O O O O l l l l l aaaaa t t t t t o o o o o TTTTT yyyyy c c c c c n n n n n eeeee rrrrr rrrrr uuuuu CCCCC eeeee v v v v v i i i i i t t t t t c c c c c e e e e e f f f f f f f f f f EEEEE ttttt nnnnn e e e e e m m m m m ttttt s s s s s e e e e e vvvvv nnnnn i i i i i n n n n n i i i i i e e e e e ggggg nnnnn aaaaa hhhhh CCCCC ddddd e e e e e n n n n n iiiii aaaaa t t t t t e e e e e RRRRR sssss ggggg nnnnn iiiii nnnnn rrrrr aaaaa EEEEE nnnnn o o o o o i i i i i ttttt aaaaa mmmmm aaaaa ggggg lllll aaaaa mmmmm AAAAA lllll aaaaa t t t t t i i i i i ppppp aaaaa CCCCC eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR nnnnn o o o o o i i i i i t t t t t p p p p p mmmmm e e e e e d d d d d eeeee RRRRR yyyyy t t t t t i i i i i rrrrr u u u u u c c c c c eeeee SSSSS mmmmm u u u u u i i i i i mmmmm eeeee rrrrr PPPPP lllll aaaaa rrrrr e e e e e n n n n n eeeee GGGGG eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR e e e e e m m m m m ooooo c c c c c n n n n n i i i i i e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm ooooo c c c c c f f f f f o o o o o r r r r r e e e e e h h h h h t t t t t o o o o o f f f f f o o o o o s s s s s mmmmm eeeee ttttt IIIII sssss uuuuu lllll p p p p p r r r r r uuuuu S S S S S & & & & & e e e e e vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR ttttt s s s s s e e e e e rrrrr eeeee ttttt nnnnn iiiii 1 1 1 1 1 6 6 6 6 6 . . . . . 3 3 3 3 3 7 7 7 7 7 9 9 9 9 9 , , , , , 5 5 5 5 5 4 4 4 4 4 6 6 6 6 6 2 2 2 2 2 . . . . . 3 3 3 3 3 5 5 5 5 5 1 1 1 1 1 , , , , , 1 1 1 1 1 5 5 5 5 5 3 3 3 3 3 . . . . . 0 0 0 0 0 2 2 2 2 2 8 8 8 8 8 , , , , , 4 4 4 4 4 4 4 4 4 4 2 2 2 2 2 8 8 8 8 8 . . . . . 2 2 2 2 2 7 7 7 7 7 1 1 1 1 1 , , , , , 2 2 2 2 2 ) ) ) ) ) 6 6 6 6 6 3 3 3 3 3 . . . . . 9 9 9 9 9 4 4 4 4 4 3 3 3 3 3 ( ( ( ( ( 1 1 1 1 1 3 3 3 3 3 . . . . . 4 4 4 4 4 4 4 4 4 4 1 1 1 1 1 9 9 9 9 9 5 5 5 5 5 . . . . . 9 9 9 9 9 2 2 2 2 2 0 0 0 0 0 , , , , , 2 2 2 2 2 7 7 7 7 7 3 3 3 3 3 . . . . . 7 7 7 7 7 9 9 9 9 9 9 9 9 9 9 , , , , , 3 3 3 3 3 ) ) ) ) ) 2 2 2 2 2 9 9 9 9 9 . . . . . 9 9 9 9 9 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( ) ) ) ) ) 9 9 9 9 9 5 5 5 5 5 . . . . . 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 ( ( ( ( ( - - - - - - - - - - 9 9 9 9 9 3 3 3 3 3 . . . . . 6 6 6 6 6 1 1 1 1 1 0 0 0 0 0 8 8 8 8 8 . . . . . 6 6 6 6 6 2 2 2 2 2 1 1 1 1 1 8 8 8 8 8 1 1 1 1 1 . . . . . 3 3 3 3 3 4 4 4 4 4 1 1 1 1 1 - - 4 4 4 4 4 4 4 4 4 4 . . . . . 6 6 6 6 6 5 5 5 5 5 1 1 1 1 1 , , , , , 2 2 2 2 2 ) ) ) ) ) 6 6 6 6 6 3 3 3 3 3 . . . . . 9 9 9 9 9 4 4 4 4 4 3 3 3 3 3 ( ( ( ( ( 1 1 1 1 1 3 3 3 3 3 . . . . . 4 4 4 4 4 4 4 4 4 4 1 1 1 1 1 9 9 9 9 9 7 7 7 7 7 . . . . . 2 2 2 2 2 0 0 0 0 0 9 9 9 9 9 , , , , , 1 1 1 1 1 8 8 8 8 8 1 1 1 1 1 . . . . . 4 4 4 4 4 5 5 5 5 5 8 8 8 8 8 , , , , , 3 3 3 3 3 ) ) ) ) ) 2 2 2 2 2 9 9 9 9 9 . . . . . 9 9 9 9 9 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( ) ) ) ) ) 9 9 9 9 9 5 5 5 5 5 . . . . . 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 ( ( ( ( ( - - - - - - - eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR 6 6 6 6 6 9 9 9 9 9 . . . . . 6 6 6 6 6 3 3 3 3 3 0 0 0 0 0 , , , , , 2 2 2 2 2 . 1 3 6 8 5 2 , - - 1 1 1 1 1 3 3 3 3 3 . . . . . 6 6 6 6 6 8 8 8 8 8 5 5 5 5 5 , , , , , 2 2 2 2 2 eeeee ggggg ddddd eeeee H H H H H w w w w w o o o o o l l l l l FFFFF e e e e e m m m m m ooooo c c c c c n n n n n i i i i i e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm ooooo ccccc - - - - - - - - - - . ) 3 2 5 4 6 ( ) ) ) ) ) 3 3 3 3 3 2 2 2 2 2 . . . . . 5 5 5 5 5 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( - - - - - ) 9 2 8 3 ( . ) ) ) ) ) 9 9 9 9 9 2 2 2 2 2 . . . . . 8 8 8 8 8 3 3 3 3 3 ( ( ( ( ( . 4 4 6 5 1 2 , - . 1 3 4 4 1 . ) 6 3 9 4 3 ( 9 9 9 9 9 3 3 3 3 3 . . . . . 1 1 1 1 1 5 5 5 5 5 9 9 9 9 9 , , , , , 1 1 1 1 1 . ) 2 9 9 4 6 ( . ) 9 5 3 3 1 ( - - - - - - - - - - - ) ) ) ) ) 5 5 5 5 5 0 0 0 0 0 . . . . . 7 7 7 7 7 6 6 6 6 6 ( ( ( ( ( 2 2 2 2 2 2 2 2 2 2 . . . . . 1 1 1 1 1 2 2 2 2 2 8 8 8 8 8 , , , , , 0 0 0 0 0 2 2 2 2 2 5 5 5 5 5 9 9 9 9 9 . . . . . 5 5 5 5 5 2 2 2 2 2 6 6 6 6 6 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 0 0 0 0 0 0 . . . . . 5 5 5 5 5 9 9 9 9 9 eeeee vvvvv rrrrr e e e e e s s s s s e e e e e RRRRR 0 0 0 0 0 9 9 9 9 9 . . . . . 3 3 3 3 3 0 0 0 0 0 1 1 1 1 1 , , , , , 7 7 7 7 7 1 1 1 1 1 6 6 6 6 6 3 3 3 3 3 . . . . . 4 4 4 4 4 0 0 0 0 0 2 2 2 2 2 , , , , , 4 4 4 4 4 7 7 7 7 7 4 4 4 4 4 . . . . . 7 7 7 7 7 8 8 8 8 8 1 1 1 1 1 , , , , , 9 9 9 9 9 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 . . . . . 6 6 6 6 6 9 9 9 9 9 2 2 2 2 2 , , , , , 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 . . . . . 1 1 1 1 1 9 9 9 9 9 8 8 8 8 8 , , , , , 7 7 7 7 7 4 4 4 4 4 8 8 8 8 8 2 2 2 2 2 . . . . . 3 3 3 3 3 2 2 2 2 2 6 6 6 6 6 , , , , , 4 4 4 4 4 ) ) ) ) ) 3 3 3 3 3 2 2 2 2 2 . . . . . 5 5 5 5 5 4 4 4 4 4 6 6 6 6 6 ( ( ( ( ( ) ) ) ) ) 4 4 4 4 4 3 3 3 3 3 . . . . . 5 5 5 5 5 0 0 0 0 0 1 1 1 1 1 ( ( ( ( ( 0 0 0 0 0 1 1 1 1 1 . . . . . 9 9 9 9 9 8 8 8 8 8 9 9 9 9 9 , , , , , 1 1 1 1 1 2 2 2 2 2 5 5 5 5 5 9 9 9 9 9 . . . . . 5 5 5 5 5 2 2 2 2 2 6 6 6 6 6 0 0 0 0 0 0 0 0 0 0 . . . . . 5 5 5 5 5 9 9 9 9 9 0 0 0 0 0 9 9 9 9 9 . . . . . 3 3 3 3 3 0 0 0 0 0 1 1 1 1 1 , , , , , 7 7 7 7 7 1 1 1 1 1 6 6 6 6 6 3 3 3 3 3 . . . . . 4 4 4 4 4 0 0 0 0 0 2 2 2 2 2 , , , , , 4 4 4 4 4 - - - - - - - - - - - - 2 2 2 2 2 3 3 3 3 3 . . . . . 8 8 8 8 8 4 4 4 4 4 7 7 7 7 7 , , , , , 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 . . . . . 1 1 1 1 1 2 2 2 2 2 ) ) ) ) ) 1 1 1 1 1 6 6 6 6 6 . . . . . 7 7 7 7 7 4 4 4 4 4 ( ( ( ( ( ) ) ) ) ) 0 0 0 0 0 3 3 3 3 3 . . . . . 9 9 9 9 9 3 3 3 3 3 ( ( ( ( ( 1 1 1 1 1 4 4 4 4 4 . . . . . 1 1 1 1 1 6 6 6 6 6 6 6 6 6 6 , , , , , 1 1 1 1 1 - - - - - ) ) ) ) ) 4 4 4 4 4 8 8 8 8 8 . . . . . 3 3 3 3 3 2 2 2 2 2 ( ( ( ( ( ) ) ) ) ) 3 3 3 3 3 6 6 6 6 6 . . . . . 2 2 2 2 2 ( ( ( ( ( - - - - - - - - - - 1 1 1 1 1 1 1 1 1 1 . . . . . 7 7 7 7 7 2 2 2 2 2 7 7 7 7 7 , , , , , 1 1 1 1 1 ) ) ) ) ) 1 1 1 1 1 6 6 6 6 6 . . . . . 7 7 7 7 7 4 4 4 4 4 ( ( ( ( ( ) ) ) ) ) 7 7 7 7 7 4 4 4 4 4 . . . . . 5 5 5 5 5 1 1 1 1 1 ( ( ( ( ( 4 4 4 4 4 0 0 0 0 0 . . . . . 4 4 4 4 4 6 6 6 6 6 6 6 6 6 6 , , , , , 1 1 1 1 1 - - . 5 4 5 2 8 5 5 5 5 5 4 4 4 4 4 . . . . . 5 5 5 5 5 2 2 2 2 2 8 8 8 8 8 - - - - - - . ) 3 7 6 3 6 ( ) ) ) ) ) 3 3 3 3 3 7 7 7 7 7 . . . . . 6 6 6 6 6 3 3 3 3 3 6 6 6 6 6 ( ( ( ( ( - - - - . ) 9 1 4 0 2 ( ) ) ) ) ) 9 9 9 9 9 1 1 1 1 1 . . . . . 4 4 4 4 4 0 0 0 0 0 2 2 2 2 2 ( ( ( ( ( . 1 1 7 2 7 1 , - - - ) 1 6 7 4 ( . 0 0 0 0 0 5 5 5 5 5 . . . . . 9 9 9 9 9 7 7 7 7 7 6 6 6 6 6 , , , , , 1 1 1 1 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9 9 9 9 9 8 8 8 8 8 . . . . . 8 8 8 8 8 4 4 4 4 4 8 8 8 8 8 , , , , , 0 0 0 0 0 5 5 5 5 5 2 2 2 2 2 8 8 8 8 8 . . . . . 3 3 3 3 3 9 9 9 9 9 2 2 2 2 2 , , , , , 1 1 1 1 1 7 7 7 7 7 0 0 0 0 0 . . . . . 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 , , , , , 9 9 9 9 9 4 4 4 4 4 3 3 3 3 3 7 7 7 7 7 . . . . . 8 8 8 8 8 4 4 4 4 4 4 4 4 4 4 , , , , , 5 5 5 5 5 ) ) ) ) ) 6 6 6 6 6 9 9 9 9 9 . . . . . 1 1 1 1 1 8 8 8 8 8 2 2 2 2 2 , , , , , 1 1 1 1 1 ( ( ( ( ( ) ) ) ) ) 3 3 3 3 3 5 5 5 5 5 . . . . . 9 9 9 9 9 0 0 0 0 0 3 3 3 3 3 ( ( ( ( ( 0 0 0 0 0 6 6 6 6 6 . . . . . 8 8 8 8 8 6 6 6 6 6 6 6 6 6 6 , , , , , 3 3 3 3 3 2 2 2 2 2 5 5 5 5 5 9 9 9 9 9 . . . . . 5 5 5 5 5 2 2 2 2 2 6 6 6 6 6 0 0 0 0 0 0 0 0 0 0 . . . . . 5 5 5 5 5 9 9 9 9 9 0 0 0 0 0 9 9 9 9 9 . . . . . 3 3 3 3 3 0 0 0 0 0 1 1 1 1 1 , , , , , 7 7 7 7 7 1 1 1 1 1 6 6 6 6 6 3 3 3 3 3 . . . . . 4 4 4 4 4 0 0 0 0 0 2 2 2 2 2 , , , , , 4 4 4 4 4 r a e y e h t g n i r u d s e g n a h C 0 0 0 0 0 2 2 2 2 2 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s A A A A A r a e y e h t g n i r u d s e g n a h C 1 1 1 1 1 2 2 2 2 2 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s A A A A A 9 9 9 9 9 1 1 1 1 1 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 0 0 0 0 0 l l l l l i i i i i rrrrr ppppp A A A A A t t t t t a a a a a s s s s s A A A A A lllll aaaaa t t t t t i i i i i ppppp aaaaa C C C C C e e e e e rrrrr aaaaa h h h h h S S S S S y y y y y t t t t t i i i i i uuuuu q q q q q E E E E E ..... AAAAA yyyyy t t t t t i i i i i uuuuu q q q q q E E E E E r r r r r e e e e e h h h h h ttttt OOOOO . . . . . B B B B B s s s s s r r r r r aaaaa lllll u u u u u c c c c c i i i i i ttttt rrrrr aaaaa PPPPP t c e f f e x a t f o t e n , n a l p t i f e n e b e h t f o t n e m e r u s a e m e R s e s a e L : 6 1 1 S A d n I f o n o i t a t n e m e l p m I e m o c n I e v i s n e h e r p m o C r e h t O rrrrr a a a a a e e e e e y y y y y e e e e e h h h h h t t t t t r r r r r o o o o o f f f f f e e e e e m m m m m ooooo c c c c c n n n n n I I I I I e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm o o o o o C C C C C l l l l l aaaaa t t t t t o o o o o TTTTT 9 9 9 9 9 1 1 1 1 1 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 0 0 0 0 0 l l l l l i i i i i rrrrr ppppp A A A A A t t t t t a a a a a s s s s s a a a a a e e e e e c c c c c n n n n n aaaaa lllll aaaaa BBBBB r a e y e h t r o f ) s s o l ( / t i f o r P 0 0 0 0 0 2 2 2 2 2 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s a a a a a e e e e e c c c c c n n n n n aaaaa lllll aaaaa BBBBB x a T n o i t u b i r t s i D d n e d i v i D r a e y e h t r o f ) s s o l ( / t i f o r P d n e d i v i D t c e f f e x a t f o t e n , n a l p t i f e n e b e h t f o t n e m e r u s a e m e R e m o c n I e v i s n e h e r p m o C r e h t O rrrrr a a a a a e e e e e y y y y y e e e e e h h h h h t t t t t r r r r r o o o o o f f f f f e e e e e m m m m m ooooo c c c c c n n n n n I I I I I e e e e e v v v v v i i i i i s s s s s nnnnn e e e e e h h h h h e e e e e rrrrr ppppp mmmmm o o o o o C C C C C l l l l l aaaaa t t t t t o o o o o TTTTT 1 1 1 1 1 2 2 2 2 2 0 0 0 0 0 2 2 2 2 2 , , , , , 1 1 1 1 1 3 3 3 3 3 h h h h h c c c c c rrrrr aaaaa M M M M M t t t t t a a a a a s s s s s a a a a a e e e e e c c c c c n n n n n aaaaa lllll aaaaa BBBBB x a T n o i t u b i r t s i D d n e d i v i D d n e d i v i D s t n e m e t a t s l a i c n a n i f d e t a d i l o s n o c e s e h t f o t r a p l a r g e t n i n a m r o f s e t o n g n i y n a p m o c c a e h T 3 s e i c i l o P g n i t n u o c c A t n a c i f i n g i S f o y r a m m u S ddddd eeeee t t t t t i i i i i mmmmm iiiii L L L L L s s s s s e e e e e i i i i i rrrrr ttttt sssss uuuuu d d d d d n n n n n I I I I I l l l l l aaaaa bbbbb o o o o o l l l l l G G G G G l l l l l rrrrr a a a a a e e e e e P P P P P f f f f f o o o o o s s s s s r r r r r ooooo t t t t t c c c c c eeeee rrrrr i i i i i D D D D D f f f f f o o o o o d d d d d rrrrr aaaaa ooooo B B B B B f f f f f o o o o o f f f f f lllll aaaaa h h h h h e e e e e b b b b b n n n n n o o o o o & & & & & r r r r r ooooo FFFFF d e h c a t t a N 2 5 3 8 0 0 r e b m u N n o i t a r t s i g e R s ’ m r i F e t a d n e v e f o t r o p e R r u o r e p s A sssss ttttt nnnnn aaaaa ttttt nnnnn u u u u u o o o o o ccccc ccccc A A A A A d d d d d eeeee rrrrr eeeee ttttt rrrrr aaaaa hhhhh CCCCC ..... o o o o o C C C C C & & & & & a a a a a t t t t t p p p p p uuuuu G G G G G . . . . . . . . . . R R R R R B B B B B r r r r r ooooo FFFFF n a m r i a h C ))))) hhhhh t t t t t e e e e e S S S S S k k k k k aaaaa ppppp eeeee eeeee D D D D D ( ( ( ( ( 1 2 0 3 0 0 0 0 N D I r o t c e r i D g n ))))) hhhhh t t t t t e e e e e S S S S S t t t t t i i i i i kkkkk lllll uuuuu P P P P P ( ( ( ( ( i g a n a M 4 4 0 3 0 0 0 0 N D I 6 9 6 3 7 0 r e b m u N p i h s r e b m e M ))))) lllll aaaaa wwwww rrrrr aaaaa g g g g g A A A A A k k k k k aaaaa ppppp eeeee eeeee D D D D D ( ( ( ( ( r e n t r a P ))))) nnnnn iiiii aaaaa J J J J J k k k k k nnnnn aaaaa yyyyy aaaaa M M M M M ( ( ( ( ( y r a t e r c e S y n a p m o C 0 2 6 6 2 - S C A . o N . M r e c i f f O e c n a n F f e i i h C ))))) iiiii nnnnn aaaaa mmmmm ooooo S S S S S a a a a a r r r r r d d d d d n n n n n eeeee rrrrr aaaaa N N N N N ( ( ( ( ( 5 5 1 2 9 0 . o N . M m a r g u r u G : e r u t a n g i S f o e c a l P 1 2 0 2 , 1 2 e n u J : e t a D i h l e D w e N : e r u t a n g i S f o e c a l P 1 2 0 2 , 1 2 e n u J : e t a D Pearl Global Industries Limited Annual Report 2020-21 95 Consolidated Statement of Cash Flow for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Opm Opm Opm Opm Opeeeeerrrrraaaaatttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies PPPPPrrrrrofit b ofit befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmms as as as as and tnd tnd tnd tnd taaaaaxxxxx ofit b ofit b ofit b AAAAAdjdjdjdjdjuuuuussssstttttmememememennnnnttttts fos fos fos fos forrrrr::::: (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, 2020 ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2020 ch 31, 2021 ch 31, 2020 ch 31, 2021 1,135.56 3,123.41 Profit on sale of current investment - Mutual Fund Rental Income Interest Income Interest Paid and other borrowing cost Depreciation and amortization Unwinding of discount on security deposit - Expense Sundry balances written back Allowance for bad and doubtful debts Bad debts written off Grant Amortised during the year Amortisation of deferred Rental Income Unwinding of discount on security deposits - 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 Loss / (Profit) on mark to market forward contracts ofit Befoefoefoefoeforrrrre We We We We Wooooorrrrrkkkkkiiiiinnnnng Cg Cg Cg Cg Caaaaapppppitititititaaaaal Cl Cl Cl Cl Chhhhhaaaaannnnngggggeseseseses ofit B ofit B OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng Pg Pg Pg Pg Prrrrrofit B ofit B Changes In Operating Assets And Liabilities: (Increase)/Decrease in other non-current financial assets (Increase)/Decrease in other non-current assets (Increase)/Decrease in Inventories (Increase)/Decrease in Trade Receivables (Increase)/Decrease in other current financial assets (Increase)/Decrease in other current assets Increase/(Decrease) in other non-current financial liabilities Increase/(Decrease) in non-current provisions Increase/(Decrease) in other non-current liabilities Increase/(Decrease) in Trade Payables Increase/(Decrease) in other current financial liabilities Increase/(Decrease) in current provisions Increase/(Decrease) in other current liabilities CCCCCaaaaash Gsh Gsh Gsh Gsh Geeeeenenenenenerrrrraaaaattttteeeeed Fd Fd Fd Fd Frrrrrooooom Opm Opm Opm Opm Opeeeeerrrrraaaaatttttioioioioionnnnnsssss Tax paid on dividend Direct Tax paid (Net of Refunds) CCCCCaaaaash flo sh flo sh flo sh flow bw bw bw bw befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss sh flo Exceptional items ) Opeeeeerrrrraaaaatttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies NNNNNet Cet Cet Cet Cet Caaaaash I sh I sh I sh Innnnnflofloflofloflow Fw Fw Fw Fw Frrrrrooooom/(m/(m/(m/(m/(UUUUUsesesesesed Id Id Id Id Innnnn) Op ) Op ) Op sh I ) Op ( A ) ( A ) ( A ) ( A ) ( A ) (16.61) (770.91) (337.74) 3,423.46 4,410.55 40.24 (133.67) 278.86 56.90 (1.00) (36.78) (31.17) (255.85) 11.32 (173.25) (48.22) (334.99) - ---------------------------------------------------------- 7,216.69 7,216.69 7,216.69 7,216.69 7,216.69 128.70 184.47 (1,489.64) (2,510.50) 3.74 1,545.15 (72.91) 230.40 16.44 6,703.76 (799.43) 40.64 (118.80) ---------------------------------------------------------- 11,078.78 11,078.78 11,078.78 11,078.78 11,078.78 - (352.04) ---------------------------------------------------------- 10,726.69 10,726.69 10,726.69 10,726.69 10,726.69 (1,265.31) ---------------------------------------------------------- 9,461.38 9,461.38 9,461.38 9,461.38 9,461.38 ---------------------------------------------------------- (73.79) (980.53) (1,142.49) 2,727.05 4,204.40 30.32 (37.34) 47.92 26.31 (1.00) (32.08) 157.32 (29.41) (154.15) (38.29) 340.22 3,740.59 462.80 ---------------------------------------------------------- 12,447.84 12,447.84 12,447.84 12,447.84 12,447.84 (278.63) 786.53 (2,755.16) 61.16 332.68 (2,594.06) 57.05 (32.87) (310.72) 37.54 268.62 (13.27) 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 ---------------------------------------------------------- 96 Pearl Global Industries Limited Annual Report 2020-21 Consolidated Statement of Cash Flow for the year ended March 31, 2021 (Contd.) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea FFFFFooooor tr tr tr tr the yea he yea he yea he yea ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2020 ch 31, 2021 ch 31, 2020 ch 31, 2021 CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Im Im Im Im Innnnnvvvvvesesesesestttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies Purchase of property, plant and equipment (including ROU, net of Lease Liabilities) Sale proceeds of property, plant and equipment (Increase)/Decrease in Capital work in progress Purchase of Investment Properties Sale proceeds of Investment Properties Purchase of Intangible assets Purchase of goodwill (Increase)/decrease in capital advances Increase/(decrease) in capital creditor (Increase)/Decrease in non-current Investments (Increase)/Decrease in current Investments (Increase)/Decrease in non-current Loans (Increase)/Decrease in current Loans (Increase)/Decrease in bank deposit Interest Income Rental Income NNNNNet Cet Cet Cet Cet Caaaaash Fsh Fsh Fsh Fsh Frrrrrooooom/ (m/ (m/ (m/ (m/ (UUUUUsesesesesed Id Id Id Id Innnnn) I) I) I) I) Innnnnvvvvvesesesesestttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies ( B ) ( B ) ( B ) ( B ) ( B ) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Fm Fm Fm Fm Fiiiiinnnnnaaaaancincincincincinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies Increase/ (Decrease) in Long Term Borrowings Lease Rental paid Government grant received Increase/ (Decrease) in Short Term Borrowings Increase/ (Decrease) in unpaid dividend account Dividend Paid Interest paid (net) sh innnnnflofloflofloflow frw frw frw frw frooooom/(m/(m/(m/(m/(uuuuusesesesesed id id id id innnnn) F) F) F) F) Fiiiiinnnnnaaaaancincincincincinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies sh i sh i NNNNNet cet cet cet cet caaaaash i sh i ( C ) ( C ) ( C ) ( C ) ( C ) sh Equuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C) sh Eq sh Eq se) In Cn Cn Cn Cn Caaaaash Ash Ash Ash Ash And Cnd Cnd Cnd Cnd Caaaaash Eq se) I se) I NNNNNet Iet Iet Iet Iet Incncncncncrrrrreaeaeaeaease (Dse (Dse (Dse (Dse (Deeeeecccccrrrrreaeaeaeaease) I A+B+C) A+B+C) A+B+C) sh Eq se) I A+B+C) Opening Balance of Cash and Cash Equivalents sh Equuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote Ne Ne Ne Ne Nooooo. 17) . 17) . 17) sh Eq TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaash Ash Ash Ash Ash And Cnd Cnd Cnd Cnd Caaaaash Eq sh Eq . 17) . 17) sh Eq (2,079.50) 40.85 (1,091.17) (331.97) 550.00 (9.20) (0.00) 70.16 173.53 (1,491.08) 190.02 279.82 23.51 (67.06) 366.47 770.91 ---------------------------------------------------------- (2,604.70) (2,604.70) (2,604.70) (2,604.70) (2,604.70) ---------------------------------------------------------- 3,839.43 (1,708.94) - (5,724.69) - - (2,600.04) ---------------------------------------------------------- (6,194.24) (6,194.24) (6,194.24) (6,194.24) (6,194.24) ---------------------------------------------------------- 662.45 662.45 662.45 662.45 662.45 8,808.89 ---------------------------------------------------------- 9,471.34 9,471.34 9,471.34 9,471.34 9,471.34 ---------------------------------------------------------- (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 ---------------------------------------------------------- CoCoCoCoCommmmmpppppooooonenenenenennnnnttttts Of C sh Equuuuuivivivivivaaaaalelelelelennnnntttttsssss sh Eq s Of Caaaaash Ash Ash Ash Ash And Cnd Cnd Cnd Cnd Caaaaash Eq sh Eq s Of C s Of C sh Eq s Of C Cash on hand With banks - on current account - on deposits with banks 606.60 8,062.59 139.70 ---------------------------------------------------------- 8,808.88 8,808.88 8,808.88 8,808.88 8,808.88 ---------------------------------------------------------- For the Increase/(Decrease) in liabilities arising from financing activities in respect of non-cash transactions, refer respective standalone financial statements of holding company & subsidiary companies. 499.55 8,794.19 177.60 ---------------------------------------------------------- 9,471.34 9,471.34 9,471.34 9,471.34 9,471.34 ---------------------------------------------------------- sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote Ne Ne Ne Ne Nooooo. 17) . 17) . 17) sh esh e sh e sh and Cnd Cnd Cnd Cnd Caaaaash e sh ash a sh a TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaash a . 17) . 17) a) 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: June 21, 2021 l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd d of Dirrrrreeeeectctctctctooooors of P rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo 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 rs of P l Glo r & o f of B d of Di (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 Place of Signature: Gurugram Date: June 21, 2021 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Pearl Global Industries Limited Annual Report 2020-21 97 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 company domiciled in India and incorporated under the provisions of the Companies Act,1956. The Company 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 Company 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 June 21, 2021. The Company, its subsidiaries (jointly referred to as the ‘Group’ herein under) considered in these consolidated financial statements includes: me of Commmmmpppppaaaaannnnnyyyyy me of Co me of Co NNNNNaaaaame of Co me of Co CouCouCouCouCounnnnntttttrrrrry ofy ofy ofy ofy of iiiiincncncncncooooorprprprprpooooorrrrraaaaatttttioioioioionnnnn l act l act PPPPPrrrrriiiiincincincincincipppppaaaaal act l activivivivivitititititiesiesiesiesies l act ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid ubsid SSSSSubsid ubsid Pearl Global Industries Limited India Pearl Global Kausal Vikas Limited India India SBUYS E-Commerce Limited Hong Kong Pearl Global Far East Limited Hong Kong Pearl Global (HK) Limited Bangladesh Norp Knit Industries Limited Manufacturing and trading of garments Skill development Online Trading of garments Trading of garments Trading of garments Manufacturing and trading of garments 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 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2020 ch 31, 2020 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2021 ch 31, 2021 ch 31, 2020 ch 31, 2021 ch 31, 2020 Holding Company 100.00 100.00 100.00 100.00 99.99 Holding Company 100.00 100.00 100.00 100.00 99.99 As at December 31, 2020, Pearl Apparel Fashions Limited, a wholly owned subsidiary of the company has gone into voluntary liquidation and appointed the official liquidator in October 2020. Accordingly, the same is not considered in these consolidated financial statements as at March 31, 2021. However, the comparative consolidated financial statements as at March 31, 2020 includes the financial statements of Pearl Apparel Fashions limited N ON ON ON ON OTTTTT E 2: BA 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 E 2: BA MMMMMEEEEEAAAAASSSSSUUUUURRRRREEEEEMMMMMEEEEENNNNNTTTTT SSSSStttttaaaaattttteeeeemememememennnnnt of Co t of Commmmmpppppllllliaiaiaiaiancncncncnceeeee : : : : : The Financial Statements are t of Co t 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 BBBBBaaaaasis of P sis of P sis of P statements are prepared under the historical cost convention except for certain financial assets and liabilities (including derivative financial instruments) that are measured at fair value or amortised cost. All assets and liabilities have been classified as current or noncurrent according to the 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 for the purpose of current non-current classification of assets and liabilities. g Concncncncnceeeeerrrrrnnnnn g Cog Co g Co GGGGGoooooiiiiinnnnng Co The board of directors have considered the financial position of the Group at 31st March 2021 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. BBBBBaaaaasis of Co sis of Connnnnsososososolllllidididididaaaaattttti oi oi oi oi onnnnn :- :- :- The Consolidated Financial :- :- sis of Co sis of Co sis of Co Statements have been prepared on the following basis:- i) The consolidation financial statements of the Group and 98 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 its subsidiary companies have been prepared in accordance with the Ind AS 110 “Consolidated financial statements”, 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 consideration to materiality impact, if any). 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 that control ceases. ii) The difference of the cost of investment in subsidiaries over its share in the equity of the investee company 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 as at reporting date. 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 - - foreign subsidiaries are identified as non integral operations of the company 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. RRRRReeeeeccccceeeeennnnnt act act act act accccccououououounnnnntttttiiiiinnnnng pg pg pg pg prrrrrooooonounounounounouncncncncnceeeeemememememennnnntttttsssss Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. However, there is no such notification issued during the year which would have been applicable from April 01, 2021. AAAAApppppppppplllllicicicicicaaaaatttttioioioioion of Nn of Nn of Nn of Nn of Neeeeew Aw Aw Aw Aw Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg PrrrrrooooonounounounounouncncncncnceeeeemememememennnnntttttsssssThe following Ind As pronouncements pursuant to issuance of the Companies (Indian Accounting Standards) Amendment Rules 2020, were applied by the Group during the year: - - - Amendment to Ind AS 103- Business Combinations- Amendment to, Ind AS 39, Ind AS 107 and Ind AS 109- Interest Rate Benchmark Reform Amendment to Ind AS 116- Leases Amendment to Ind AS 1 and Ind AS 8-Definition of Material None of the changes described above, or any of the other changes to the Ind AS, with the exception of Ind AS 116 (Leases), have a impact on the net worth, financial position, financial performance or on the cash flow of the Group. iv) The Consolidated Financial Statements are presented, to the extent possible, in the same format as adopted by the Holding Company for its individual financial statements. n of Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeem em em em em ennnnnttttts of F s of F s of F s of Fooooorrrrreigeigeigeigeignnnnn v)v)v)v)v) TTTTTrrrrraaaaannnnns ls ls ls ls laaaaattttti oi oi oi oi on of F n of F n of F s of F n of F OpOpOpOpOpeeeeerrrrraaaaatttttioioioioionnnnnsssss - In view of Ind As-“21” ‘The effects of Changes in Foreign Exchange Rates’, the operations of all the E 3: SIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT AT AT AT AT ACCCCCCCCCCOOOOOUUUUUNNNNNTTTTTIIIIINNNNNG PG PG PG PG POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS NONONONONOTTTTTE 3: SI E 3: SI E 3: SI E 3: SI a)a)a)a)a) SigSigSigSigSignnnnnificificificificificaaaaannnnnt ac es andndndndnd es a s, estttttiiiiimmmmmaaaaatttttes a es a s, es t accccccououououounnnnntttttiiiiinnnnng jg jg jg jg judududududgggggeeeeemememememennnnnttttts, es s, es t ac t ac es a s, es t ac aaaaassssssssssuuuuummmmmptptptptptioioioioionnnnnsssss In preparing these financial statements, Management has made judgements, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and Pearl Global Industries Limited Annual Report 2020-21 99 Notes to consolidated financial statements for the year ended March 31, 2021 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 • • fair value measurement of financial instruments. Estimation of Rate of RODTEP for recognition of export incentive claim receivable for the period from January 1, 2021 to March 31, 2021. sificaaaaatttttioioioioionnnnn sific t clt claaaaassssssific sific t clt cl bbbbb))))) CCCCCuuuuurrrrrrrrrreeeeennnnnt vt vt vt vt veeeeersrsrsrsrsuuuuus nos nos nos nos nonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt cl sific The Group presents assets and liabilities in the balance sheet based on current/ non-current classification. AsAsAsAsAssetsetsetsetsetsssss::::: An asset is treated as current when it is: a) Expected to be realised or intended to be sold or consumed in normal operating cycle. b) Held primarily for the purpose of trading c) Expected to be realised within twelve months after the reporting period, or d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. • Useful lives of Property, plant and equipment and LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies::::: Intangible Assets Employee benefit plans A liability is current when: (a) It is expected to be settled in normal operating cycle Amortization of Government Grant (b) It is held primarily for the purpose of trading • • • Determination of Provision of income taxes vis-à-vis anticipated tax issues and final tax outcomes of pending matters. • Highly Probable sale transaction for hedging contracts. (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 nd estttttiiiiimmmmmaaaaatttttioioioioion un un un un uncncncncnceeeeerrrrrtttttaaaaaiiiiinnnnntttttiesiesiesiesies nd es AsAsAsAsAssssssuuuuummmmmptptptptptioioioioionnnnns as as as as and es nd es nd es All other liabilities are classified as non-current. 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. Deferred tax assets and liabilities are classified as non- current assets and liabilities. OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng cg cg cg cg cycleycleycleycleycle: : : : : The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle. E) an dn dn dn dn d E) a t (PPPPPP E) a E) a t (P nd Equuuuu iiiiipppppm em em em em ennnnnt (P t (P nd Eq nd Eq t a ccccc))))) PPPPPrrrrroooooppppp eeeeerrrrr ttttt yyyyy, P, P, P, P, Plllllaaaaannnnnt a t a t and Eq E) a t (P nd Eq t a DDDDDeeeeeppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn Property, plant and equipment and capital work in progress are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Such cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct services, any other costs 100 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 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. 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. DDDDDeeeeecccccooooommmmmmmmmmisisisisissiosiosiosiosionnnnniiiiinnnnng Cos s : g Costtttts : s : g Cos g Cos s : The present value of the s : g Cos expected cost for the decommissioning of an asset, if any, after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. (as applicable) CCCCCaaaaapppppitititititaaaaal wl wl wl wl wooooorrrrrk ik ik ik ik in pn pn pn pn prrrrrooooogggggrrrrresesesesessssss: : : : : Capital work in progress comprises the cost of fixed assets that are not ready for their intended use at the reporting date. Cost comprises of purchase cost, related acquisition expenses, borrowing costs and other direct expenditure. Depreciation is provided on a pro-rata basis on the straight- line basis on the estimated useful life prescribed under Schedule II to Companies Act , 2013 with the following exception : - Fixed asset costing upto ` 5000 has been fully depreciated during the financial year - - Leasehold land has been amortised over the lease term. Freehold Land is not depreciated. Depreciation Method, useful lives and residual values are reviewed at each financial year end and adjusted, if appropriate. ddddd))))) IIIIInnnnnvvvvvesesesesestttttmememememennnnnt Pt Pt Pt Pt Prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies Property that is held for rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any. The Group, based on technical assessment made by management, depreciates the building over estimated useful life of 60 years. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS: : : : : On transition to Ind AS, the Group has elected to continue with the carrying value of all its investment properties as at 1 April 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such investment properties. e)e)e)e)e) OOOOOtttttheheheheher Ir Ir Ir Ir Innnnntttttaaaaannnnngggggibibibibible ale ale ale ale assssssetsetsetsetsetsssss nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea nd mea RRRRReeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea Intangible assets that are acquired by the Group are measured initially at cost. Intangible assets with finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses, if any. All expenditures, qualifying as Intangible Assets are amortized over estimated useful life. Specialized softwares are amortized over a period of 3 years or license period whichever is earlier. 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 intangible assets recognized as at April 01, 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such intangible assets. SSSSSubse t Expppppeeeeendndndndndititititituuuuurrrrreeeee : : : : : Subsequent expenditure is ubseubseqqqqqueueueueuennnnnt Ex ubseubse t Ex t Ex 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. Pearl Global Industries Limited Annual Report 2020-21 101 Notes to consolidated financial statements for the year ended March 31, 2021 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 reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. The amortisation method, residual value and the useful lives of intangible assets are reviewed annually and adjusted as necessary. fffff ))))) BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnng cg cg cg cg cososososostttttsssss Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use. sactioioioioionnnnns as as as as and Tnd Tnd Tnd Tnd Trrrrraaaaannnnnslslslslslaaaaatttttioioioioionnnnnsssss sact ggggg ))))) FFFFFooooorrrrreigeigeigeigeign Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncy Ty Ty Ty Ty Trrrrraaaaannnnnsact sact sact FFFFFuuuuunctnctnctnctnctioioioioionnnnnaaaaal al al al al and pnd pnd pnd pnd prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioionnnnnaaaaal cul cul cul cul currrrrrrrrreeeeencncncncncyyyyy The Consolidated financial statements are presented in Indian Rupees (`). Items included in the Consolidated Financial statements of the Group are recorded using the currency of the primary economic environment in which the Group operates (the ‘functional currency’). All the financial information presented in ‘ except where otherwise stated and the values are rounded to nearest lakh upto two decimal places. sactioioioioionnnnns as as as as and bnd bnd bnd bnd baaaaalllllaaaaancncncncnceseseseses sact TTTTTrrrrraaaaannnnnsact sact sact Transactions in foreign currencies are translated into the functional currency of the Company at the exchange rates at the date the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date.Non-monetary assets and liabilities that are measured at fair value in a foreign currencies are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and liabilities 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. Advances received or paid in foreign currency are recognised at exchange rate on the date of transaction and not re-translated. p Cop Commmmmpppppaaaaannnnniesiesiesiesies p Cop Co GrGrGrGrGrouououououp Co The results and financial position of foreign operations that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • • assets and liabilities are translated at the closing rate at the date of that balance sheet income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), On Consolidation, all resulting exchange differences on translation are recognised in other comprehensive income, that will be reclassified subsequently to statement of profit and loss. hhhhh))))) RRRRReeeeevvvvveeeeennnnnue Rue Rue Rue Rue Reeeeecccccooooogggggnnnnnitititititioioioioionnnnn The Group derives revenue primarily from export of manufactured and traded goods. ue frue frooooom cm cm cm cm cooooonnnnntttttrrrrract wact wact wact wact wititititith cuh cuh cuh cuh cussssstttttooooomememememersrsrsrsrs ue frue fr RRRRReeeeevvvvveeeeennnnnue fr Revenue from contract with customers is recognised when 102 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 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 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 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 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 are reviewed to determine each party’s respective role in the transaction. cific reeeeevvvvveeeeennnnnue rue rue rue rue reeeeecccccooooogggggnnnnnitititititioioioioion cn cn cn cn crrrrritititititeeeeerrrrriaiaiaiaia::::: cific r cific r SSSSSpppppeeeeecific r cific r le of prrrrroooooddddductuctuctuctuctsssss le of p le of p (((((iiiii))))) SSSSSaaaaale of p le of p Revenue from sale of products is recognised at the point in time when control of product is transferred to the customer. In case of Export sale it is on the basis of date of airway bill/bill of lading/Forwarder Cargo Receipts. (((((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 (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. siderrrrraaaaatttttioioioioionnnnn side side le Connnnnside le Co VVVVVaaaaarrrrriabiabiabiabiable Co le Co side le Co If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. g Commmmmpppppooooonenenenenennnnnttttt g Cog Co g Co SigSigSigSigSignnnnnificificificificificaaaaannnnnt Ft Ft Ft Ft Fiiiiinnnnnaaaaancincincincincinnnnng Co Generally, the Group does not receive short term or long term advances from its customers except in certain scenarios. Using the practical expedient in Ind AS 115, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of promised good or service to the customer and when the customer pays for good or service will be one year or less. The Group does not expect to have any contracts where the period between the transfer of promised goods and services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money. act baaaaalllllaaaaancncncncnceseseseses act b CoCoCoCoConnnnntttttrrrrract b act b act b 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 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. Pearl Global Industries Limited Annual Report 2020-21 103 Notes to consolidated financial statements for the year ended March 31, 2021 Contract liabilities 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. Contract liabilities are recognised as revenue when the Group performs under the contract. Cost to obtain a contract The Group does not capitalise costs to obtain a contract because majorly the contracts have terms that do not extend beyond one year. The Company does not have a significant amount of capitalized costs related to fulfilment. iiiii))))) IIIIInnnnnvvvvveeeeennnnntttttooooorrrrriesiesiesiesies i) ii) iii) Inventories of finished goods manufactured by the 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. jjjjj))))) LLLLLeaeaeaeaeasessessessesses The Company 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. s a lesseseseseseeeeee s a les CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les s a les s a les 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: iiiii))))) RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss 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 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. iiiiiiiiii))))) LLLLLeaeaeaeaease Lse Lse Lse Lse Liabiabiabiabiabilililililitititititiesiesiesiesies At the commencement date of the lease, the 104 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 Group 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 Company 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 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 Group’s lease liabilities are included in other current and non-current financial liabilities. ses of lowwwww-----vvvvvaaaaalllllueueueueue ses of lo ses of lo nd lea nd lea ses a (((((iiiiiiiiiiiiiii))))) ShoShoShoShoShorrrrrttttt-----ttttteeeeerrrrrm leam leam leam leam leases a ses a nd leases of lo ses and lea ses of lo nd lea ses a aaaaassssssetsetsetsetsetsssss 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. s a lessososososorrrrr s a les CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les s a les s a les Leases for which the Group is a lessor is classified as finance or operating lease. Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. nefitsssss k)k)k)k)k) EEEEEmmmmmppppplololololoyeyeyeyeyee’e’e’e’e’s bs bs bs bs beeeeenefit nefit nefit nefit nefitsssss: All employee benefits nefit nefit ShoShoShoShoShorrrrrt tt tt tt tt teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit expected to be settled wholly within twelve months of rendering the service are classified as short-term employee benefits. When an employee has rendered service to the Group during an accounting period, the Group recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense unless another Ind AS requires or permits the inclusion of the benefits in the cost of an asset. Benefits such as salaries, wages and short-term compensated absences, bonus and ex-gratia etc. are recognised in statement of profit and loss in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid after deducting any amount already paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. If the amount already paid exceeds the undiscounted amount of the benefits, the Group recognises that excess as an asset / prepaid expense to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund. DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnn A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a statutory authority and will have no legal or constructive obligation to pay further amounts. Pearl Global Industries Limited Annual Report 2020-21 105 Notes to consolidated financial statements for the year ended March 31, 2021 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 Group has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee’s salary and the tenure of employment. Vesting occurs upon completion of five years of service. The Group accounts for the liability for gratuity benefits payable in future based on an independent actuarial valuation report using the projected unit credit method as at the year end. The obligations are measured at the present value of the estimated future cash flows. The discount rate is generally based upon the market yields available on Government bonds at the reporting date with a term that matches that of the liabilities. Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive Income in the statement of profit and loss. All other expenses related to defined benefit plans are recognised in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive Income will not be reclassified to statement of profit and loss hence it is treated as part of retained earnings in the statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as past service costs. nefitsssss OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefit As per the Group’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilised during the service, or encashed. Encashment can be made during the service, on early retirement, on withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits is determined based on the seniority and the respective employee’s salary. The Group records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. lllll))))) PPPPPrrrrrovovovovovisioisioisioisioisionnnnnsssss GGGGGeeeeenenenenenerrrrraaaaalllll Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. The unwinding of discount is recognised in the statement of profit and loss as a finance cost.Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed. mmmmm))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss A financial instrument is a contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments. (((((iiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea nd mea nd mea A financial asset is initially recognised at fair value. In case of financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and loss. In other cases, the transaction cost are attributed to the acquisition value of the financial asset. t measssssuuuuurrrrreeeeemememememennnnnttttt t mea SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t mea t mea For purposes of subsequent measurement, financial 106 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 assets are classified in three categories: (((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies Financial Asset carried at amortised cost nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea nd mea - - - Financial Asset at fair value through other comprehensive income (FVTOCI) Financial Asset at fair value through profit and loss (FVTPL) set caaaaarrrrrrrrrrieieieieied ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt set c FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset c set c set c A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. ue tue thhhhhrrrrro uo uo uo uo uggggg h ot ue tue t set at ft ft ft ft faaaaa iiiiir vr vr vr vr vaaaaa lllllue t set a set a FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset a h oth eh eh eh eh errrrr h ot h ot set a h ot cccccooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome (Fme (Fme (Fme (Fme (FVVVVVTTTTTOOOOOCCCCCI)I)I)I)I) A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. set at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a set a set a FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset a nd lossssss nd los nd los ofit a ofit a ofit and los set a nd los ofit a (F(F(F(F(FVVVVVTTTTTPPPPPL)L)L)L)L) A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised 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. Financial liabilities are classified, at initial recognition, 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 Group financial liabilities include borrowings, trade and other payables, security deposits received etc. t measssssuuuuurrrrreeeeemememememennnnnttttt t mea t mea SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t mea For purposes of subsequent measurement, financial liabilities are classified in two categories: - - Financial liabilities at amortised cost Financial liabilities at fair value through profit and loss (FVTPL) A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such as initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the Statement of Profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense is recognised in the Statement of Profit and loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de- recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. (((((iiiiiiiiiiiiiii))))) OffOffOffOffOffsetsetsetsetsettttttiiiiinnnnng of fi g of fi g of fi g of finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss g of fi Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously Pearl Global Industries Limited Annual Report 2020-21 107 Notes to consolidated financial statements for the year ended March 31, 2021 (((((iv) Div) Div) Div) Div) Deeeeerrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss Till March 31, 2019, the forward currency contracts were used to hedge foreign currency risks. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss. (v)(v)(v)(v)(v) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg With effect from April 2019, the Group adopted Hedge Accounting.The derivatives that are designated as hedging instrument under Ind AS 109 to mitigate risk arising out of foreign currency transactions are accounted for as cash flow hedges. The Group enters into hedging instruments in accordance with policies as approved by the Board of Directors with written principles which is consistent with the risk management strategy of the Group. The hedge instruments are designated and documented as hedges at the inception of the contract. The effectiveness of hedge instruments is assessed and measured at inception and on an ongoing basis. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in OCI, e.g., cash flow hedging reserve and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the statement of profit and loss. The amount accumulated is retained in cash flow hedge reserve and reclassified to profit or loss in the same period or periods during which the hedged item affects the statement of profit and loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument is terminated or exercised prior to its maturity/ contractual term, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is reclassified to the Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified immediately in the statement of profit and loss. nnnnn))))) t of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of fi IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of fi t of fi t of fi The Group measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increases in credit risk. Expected credit loss is the weighted average of the difference between all contractual cash flows that are due to the Group in accordance with the contracts and all the cash flows that the Group expects to receive, discounted at original effective interest rate with the respective risk of defaults occuring as the weights. ooooo))))) t of nonnnnn-fi-fi-fi-fi-finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of no IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of no t of no t of no The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit (‘CGU’) is the greater of its value in use or its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing , assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (‘CGU’). An impairment loss is recognized, if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount and is recognised in statement of profit and loss. Impairment losses recognised in prior periods are assessed at end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying 108 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. ue measssssuuuuurrrrreeeeemememememennnnnttttt ue mea ppppp))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea ue mea Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (a) In the principal market for the asset or liability, or (b) In the absence of a principal market, in the most advantageous market for the asset or liability A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. qqqqq))))) TTTTTaaaaaxxxxxeseseseses CCCCCuuuuurrrrrrrrrreeeeennnnnt it it it it incncncncncooooome tme tme tme tme taaaaaxxxxx Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income (OCI) or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Current tax assets are offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously. DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx "Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.“ “Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised." "Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Tax relating to items recognized directly in equity/other comprehensive income is recognized in respective head and not in the statement of profit & loss.“ “The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered." Pearl Global Industries Limited Annual Report 2020-21 109 Notes to consolidated financial statements for the year ended March 31, 2021 "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 Group recognises MAT credit available as an asset only to the extent that there is convincing evidence that normal income tax will be paid during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which MAT credit is recognised as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as “MAT Credit Entitlement”. The Group reviews the “MAT Credit Entitlement” asset at each reporting date and writes down the asset to the extent the Group does not have convincing evidence that it will pay normal tax during the specified period. In accordance with Ind AS 12 Group is grouping MAT credit entitlement with Deferred Tax Assets/Liabilities (Net). ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid ubsid ubsid Investment in subsidiaries There is an option to measure investments in subsidiaries at cost in accordance with Ind AS 27 at either: (a) Fair value on date of transition; or (b) Previous GAAP carrying values The Group has decided to use the previous GAAP carrying values to value its investments in its subsidiaries as on the date of transition, April 01, 2016. r)r)r)r)r) CCCCCaaaaash a sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss sh esh e sh e sh ash and cnd cnd cnd cnd caaaaash e sh ash a Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash balance on hand, cash balance at banks and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management. s)s)s)s)s) EEEEEaaaaarrrrrnnnnniiiiinnnnngggggs ps ps ps ps peeeeer shr shr shr shr shaaaaarrrrre (Ee (Ee (Ee (Ee (EPPPPPS)S)S)S)S) In determining earnings per share, the 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 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 Company 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. ies and cnd cnd cnd cnd cooooonnnnntttttiiiiinnnnngggggeeeeennnnnt at at at at assssssetsetsetsetsetsssss ies a uuuuu))))) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities a ies a ies a A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. 110 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 ch & devvvvveloeloeloeloelopppppmememememennnnnt ct ct ct ct cososososostttttsssss ch & de esearrrrrch & de ch & de esea v)v)v)v)v) RRRRResea esea ch & de esea w)w)w)w)w) ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss 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. 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. Pearl Global Industries Limited Annual Report 2020-21 111 Notes to consolidated financial statements for the year ended March 31, 2021 E 4 : PROOOOOPPPPPEEEEERRRRRTTTTTYYYYY, P, P, P, P, PLLLLLAAAAANNNNNTTTTT E 4 : PR NONONONONOTTTTTE 4 : PR E 4 : PR E 4 : PR AAAAANNNNND EQD EQD EQD EQD EQUUUUUIIIIIPMPMPMPMPMEEEEENNNNNTTTTT LaLaLaLaLandndndndnd----- frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss seholdldldldld seho seho lealealealealeaseho seho LLLLLeaeaeaeaeaseho seholdldldldld seho seho seho iiiiimmmmmppppprrrrrovovovovoveeeeemememememennnnntttttsssss PPPPPlllllaaaaannnnnt at at at at andndndndnd E qE qE qE qE quuuuuiiiiipppppm em em em em ennnnnttttt FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee VVVVVehehehehehicles icles icles icles icles nd Fnd Fixixixixixuuuuurrrrreseseseses nd Fnd F aaaaand F TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed cd cd cd cd cososososost)t)t)t)t) As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2019 il 1, 2019 il 1, 2019 il 1, 2019 il 1, 2019 Add: Additions made during the year Less: Disposals during the year (Less)/Add: 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 Add: Additions made during the year Less: Disposals during the year (Less)/Add: Adjustments during the year ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed de d deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn d de d de d de il 1, 2019 il 1, 2019 As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2019 il 1, 2019 il 1, 2019 Add: Depreciation charge for the year Less: Disposals during the year (Less)/Add: 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 Add: Depreciation charge for the year Less: Disposals during the year (Less)/Add: Adjustments during the year ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 1,612.30 1,612.30 1,612.30 1,612.30 1,612.30 - 4.53 2,792.31 2,792.31 2,792.31 2,792.31 2,792.31 - - 221.95 (2,744.57) 47.74 47.74 47.74 47.74 47.74 532.57 - - 580.32 580.32 580.32 580.32 580.32 1,829.72 1,829.72 1,829.72 1,829.72 1,829.72 - - - 1,829.72 1,829.72 1,829.72 1,829.72 1,829.72 - - - - - - - - - - - - - - - - - - - - - 38.03 38.03 38.03 38.03 38.03 0.34 - (37.00) 1.37 1.37 1.37 1.37 1.37 1.96 - - 3.33 3.33 3.33 3.33 3.33 6,703.23 6,703.23 6,703.23 6,703.23 6,703.23 38.17 - 223.66 6,965.06 6,965.06 6,965.06 6,965.06 6,965.06 367.37 - (79.55) 7,252.88 7,252.88 7,252.88 7,252.88 7,252.88 890.20 890.20 890.20 890.20 890.20 272.23 - 51.18 1,213.61 1,213.61 1,213.61 1,213.61 1,213.61 283.55 - (17.62) 1,479.54 1,479.54 1,479.54 1,479.54 1,479.54 607.45 607.45 607.45 607.45 607.45 191.20 - 10.41 809.06 809.06 809.06 809.06 809.06 33.86 - 28.46 871.38 871.38 871.38 871.38 871.38 189.20 189.20 189.20 189.20 189.20 152.36 - 7.28 348.85 348.85 348.85 348.85 348.85 173.37 - 11.16 533.37 533.37 533.37 533.37 533.37 16,927.14 16,927.14 16,927.14 16,927.14 16,927.14 1,700.23 125.99 718.15 19,219.53 19,219.53 19,219.53 19,219.53 19,219.53 895.03 17.26 (193.18) 19,904.12 19,904.12 19,904.12 19,904.12 19,904.12 4,890.06 4,890.06 4,890.06 4,890.06 4,890.06 1,962.45 73.71 288.75 7,067.56 7,067.56 7,067.56 7,067.56 7,067.56 1,884.32 7.71 (105.92) 8,838.25 8,838.25 8,838.25 8,838.25 8,838.25 31,231.46 31,231.46 1,338.54 1,338.54 1,250.46 1,250.46 1,338.54 31,231.46 1,250.46 1,338.54 31,231.46 1,250.46 31,231.46 1,338.54 1,250.46 2,579.65 304.50 345.54 314.63 184.11 - 32.00 (1,490.41) 47.99 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 2,101.84 88.47 184.53 83.53 66.27 - (270.15) (8.86) (17.03) 33,754.22 33,754.22 1,504.26 1,504.26 1,811.50 1,811.50 33,754.22 1,504.26 33,754.22 1,811.50 1,504.26 33,754.22 1,504.26 1,811.50 1,811.50 437.19 437.19 437.19 437.19 437.19 182.60 - 20.37 640.16 640.16 640.16 640.16 640.16 188.24 - (7.69) 820.71 820.71 820.71 820.71 820.71 6,875.58 6,875.58 430.89 430.89 6,875.58 430.89 6,875.58 6,875.58 430.89 430.89 2,767.50 197.51 168.96 95.26 342.88 12.30 9,817.00 9,817.00 545.45 545.45 9,817.00 545.45 9,817.00 9,817.00 545.45 545.45 2,722.09 190.65 40.62 32.91 (124.15) (4.06) 12,374.33 12,374.33 699.13 699.13 12,374.33 699.13 12,374.33 12,374.33 699.13 699.13 1,829.72 1,829.72 576.98 46.37 5,773.34 5,751.44 338.01 460.21 11,065.87 12,151.98 990.79 1,003.84 21,379.87 21,379.87 21,379.87 805.13 21,379.87 21,379.87 22,189.06 22,189.06 22,189.06 945.47 22,189.06 22,189.06 a) The above assets includes Gross block of land of ` 78.55 (March 31, 2020: ` 78.55) situated at Narshingpur, Tehsil District Gurgaon (Haryana). The Group has executed a colloboration agreement with DLF Retail Developers Limited on November 30, 2007 for construction of a commercial project on part- land amounting to ` 42.50 (March 31, 2020: ` 42.50). However, as certified by the Management, the work has not started during the financial year 2020-21 due to pending receipt of license from the concerned authority. b) For Information on property, plant and equipment pledged as security by the Group refer Note 21. 112 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 c) The above property, plant and equipment includes assets given on lease (Holding Company), the details of which are as under: ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 Gross carrying amount Accumulated depreciation 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 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 18.96 ---------------------------------------------------------- 8.81 8.81 8.81 8.81 8.81 ---------------------------------------------------------- 21.22 15.24 ---------------------------------------------------------- 5.98 5.98 5.98 5.98 5.98 ---------------------------------------------------------- 48.99 34.20 ---------------------------------------------------------- 14.79 14.79 14.79 14.79 14.79 ---------------------------------------------------------- 27.77 16.59 ---------------------------------------------------------- 11.18 11.18 11.18 11.18 11.18 ---------------------------------------------------------- 21.22 12.21 ---------------------------------------------------------- 9.01 9.01 9.01 9.01 9.01 ---------------------------------------------------------- 48.99 28.80 ---------------------------------------------------------- 20.19 20.19 20.19 20.19 20.19 ---------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 4,701.46 --------------------------------------------------------- 4,701.46 4,701.46 4,701.46 4,701.46 4,701.46 ======================== 3,610.29 --------------------------------------------------------- 3,610.29 3,610.29 3,610.29 3,610.29 3,610.29 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 3,892.71 808.75 - - - --------------------------------------------------------- 4,701.46 4,701.46 4,701.46 4,701.46 4,701.46 ======================== 2,542.43 1,011.41 - - 56.45 --------------------------------------------------------- 3,610.29 3,610.29 3,610.29 3,610.29 3,610.29 ======================== b) For movement in capital work in progress, refer to the disclosures made in respective standalone financials of the holding company and subsidiary companies. Pearl Global Industries Limited Annual Report 2020-21 113 Notes to consolidated financial statements for the year ended March 31, 2021 E 6 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNT PT PT PT PT PRRRRROOOOOPPPPPEEEEERRRRRTTTTTIIIIIEEEEESSSSS E 6 : IN NONONONONOTTTTTE 6 : IN E 6 : IN E 6 : IN GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt d Cost)t)t)t)t) d Cos d Cos (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed Cos d Cos As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 il 01, 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 Add: Additions made during the year Less: Disposals/adjustments during the year ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed ded ded ded ded deppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn 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 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 Add: Depreciation charge for the year Less: Disposals/adjustments during the year ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) LaLaLaLaLandndndndnd frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd seholdldldldld seho lealealealealeaseho seho seho BBBBBuuuuuildildildildildiiiiinnnnnggggg TTTTTotototototaaaaalllll 3,086.79 49.14 - ---------------------------------------------------------- 3,135.93 ---------------------------------------------------------- 103.45 1,401.01 ---------------------------------------------------------- 1,838.38 ---------------------------------------------------------- - - - - - - - ---------------------------------------------------------- - - - - - ---------------------------------------------------------- - - - - - - ---------------------------------------------------------- - - - - - ---------------------------------------------------------- 10.36 - - ---------------------------------------------------------- 10.36 ---------------------------------------------------------- - - ---------------------------------------------------------- 10.36 ---------------------------------------------------------- - - - ---------------------------------------------------------- - - - - - ---------------------------------------------------------- - - ---------------------------------------------------------- - - - - - ---------------------------------------------------------- 4,580.71 - - - - - - ---------------------------------------------------------- 4,580.71 ---------------------------------------------------------- 228.52 197.49 ---------------------------------------------------------- 4,611.74 ---------------------------------------------------------- 247.98 85.76 - ---------------------------------------------------------- 333.74 333.74 333.74 333.74 333.74 ---------------------------------------------------------- 86.77 14.64 ---------------------------------------------------------- 405.87 405.87 405.87 405.87 405.87 ---------------------------------------------------------- 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 ---------------------------------------------------------- 331.97 331.97 331.97 331.97 331.97 1,598.50 1,598.50 1,598.50 1,598.50 1,598.50 ---------------------------------------------------------- 6,460.47 6,460.47 6,460.47 6,460.47 6,460.47 ---------------------------------------------------------- 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 ---------------------------------------------------------- 86.77 86.77 86.77 86.77 86.77 14.64 14.64 14.64 14.64 14.64 ---------------------------------------------------------- 405.87 405.87 405.87 405.87 405.87 ---------------------------------------------------------- 1,838.38 3,135.93 10.36 10.36 4,205.87 4,246.97 6,054.60 7,393.26 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 (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) ue of innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies (((((bbbbb))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of i ue of i ue of i ue of i 770.91 56.44 8.44 706.03 706.03 706.03 706.03 706.03 86.77 ---------------------------------------------------------- 619.26 619.26 619.26 619.26 619.26 ---------------------------------------------------------- 10,259.00 10,259.00 10,259.00 10,259.00 10,259.00 ---------------------------------------------------------- 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 ---------------------------------------------------------- 114 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 n of faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue n of f EEEEEssssstttttiiiiimmmmmaaaaatttttioioioioion of f n of f n of f The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, 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. 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, 2021. (((((ccccc))))) E 7 : GOOOOOODDDDDWWWWWIIIIILLLLLLLLLL E 7 : GO E 7 : GO NONONONONOTTTTTE 7 : GO E 7 : GO Goodwill on acquisition of subsidiaries Add/ Less: 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 (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed Cos d Cost)t)t)t)t) d Cos d Cos d Cos il 1, 2019 il 1, 2019 As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2019 il 1, 2019 il 1, 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 Add: Additions during the year Less: Disposals / adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 AAAAAmomomomomorrrrrtttttisaisaisaisaisatttttioioioioion an an an an and ind ind ind ind immmmmpppppaaaaaiiiiirrrrrmememememennnnnttttt As aAs aAs aAs aAs at At At At At Appppprrrrril 1, 2019 il 1, 2019 il 1, 2019 il 1, 2019 il 1, 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 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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 NNNNNet Cet Cet Cet Cet Caaaaarrrrrrrrrryiyiyiyiyinnnnng Ag Ag Ag Ag Amoumoumoumoumounnnnnttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 1,792.66 (36.53) - ---------------------------------------------------------- 1,756.13 1,756.13 1,756.13 1,756.13 1,756.13 ======================== 1,897.56 120.22 (225.12) ---------------------------------------------------------- 1,792.66 1,792.66 1,792.66 1,792.66 1,792.66 ======================== (Amount in ` Lakh, unless otherwise stated) CoCoCoCoCommmmmpupupupuputtttteeeeerrrrr SSSSSofofofofoftttttwwwwwaaaaarrrrreeeee 247.53 17.58 - ---------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 9.21 - ---------------------------------------------------------- 274.32 274.32 274.32 274.32 274.32 ---------------------------------------------------------- 132.60 47.75 - ---------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 39.89 - ---------------------------------------------------------- 220.24 220.24 220.24 220.24 220.24 ---------------------------------------------------------- 54.08 54.08 54.08 54.08 54.08 84.76 84.76 84.76 84.76 84.76 TTTTTotototototaaaaalllll 247.53 17.58 - ---------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 9.21 - ---------------------------------------------------------- 274.32 274.32 274.32 274.32 274.32 ---------------------------------------------------------- 132.60 47.75 - ---------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 39.89 - ---------------------------------------------------------- 220.24 220.24 220.24 220.24 220.24 ---------------------------------------------------------- 54.08 54.08 54.08 54.08 54.08 84.76 84.76 84.76 84.76 84.76 Pearl Global Industries Limited Annual Report 2020-21 115 Notes to consolidated financial statements for the year ended March 31, 2021 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 B.B.B.B.B. C.C.C.C.C. DDDDD..... 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, 2020: 50,000) Equity Shares of ` 10 each fully paid up IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in Fn Fn Fn Fn Fiiiiinnnnnaaaaancianciancianciancial Ml Ml Ml Ml Maaaaarrrrrkkkkketetetetet (F(F(F(F(Faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh oth oth oth oth otheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome)me)me)me)me) Investments in Mutual funds - Unquoted Investments in Units in money market funds, at fair value - Quoted Debt Investment, at fair value - Quoted 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 y - (y - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd))))) y - (y - ( ubsidiaiaiaiaiarrrrry - ( 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, 2020: 3,000,000) Preference Shares of ` 10 each fully paid up Less: Provision for diminution in value of Investments 300.00 (30.00) ---------------------------------------------------------- IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in Gn Gn Gn Gn Govovovovoveeeeerrrrrnnnnnmememememennnnnt set set set set secucucucucurrrrrititititities - ( ies - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd))))) ies - ( ies - ( ies - ( d Cost)t)t)t)t) d Cos d Cos (((((AAAAAt At At At At Amomomomomorrrrrtttttiseiseiseiseised Cos d Cos 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 TTTTTotototototaaaaal (l (l (l (l (A + B + C + D) A + B + C + D) A + B + C + D) A + B + C + D) A + B + C + D) 335.00 ---------------------------------------------------------- 335.00 335.00 335.00 335.00 335.00 ---------------------------------------------------------- - 96.33 1,946.59 ---------------------------------------------------------- 2,042.92 2,042.92 2,042.92 2,042.92 2,042.92 ---------------------------------------------------------- - 141.00 ---------------------------------------------------------- 141.00 141.00 141.00 141.00 141.00 ---------------------------------------------------------- 948.97 - - ---------------------------------------------------------- 948.97 948.97 948.97 948.97 948.97 ---------------------------------------------------------- 270.00 ---------------------------------------------------------- 270.00 270.00 270.00 270.00 270.00 ---------------------------------------------------------- - ---------------------------------------------------------- - - - - - ---------------------------------------------------------- 2,085.98 1,992.77 1.63 ---------------------------------------------------------- 2,087.62 2,087.62 2,087.62 2,087.62 2,087.62 ---------------------------------------------------------- 4,735.54 4,735.54 4,735.54 4,735.54 4,735.54 ======================== 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 ======================== 116 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 E 9 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTS TS TS TS TS (Co(Co(Co(Co(Connnnntttttddddd...)...)...)...)...) E 9 : IN NONONONONOTTTTTE 9 : IN E 9 : IN E 9 : IN (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 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 ICICI Prudential Short Term Fund DP Growth 536,068.057 units of Face Value of ` 10 per unit (March 31, 2020: 536,068.057 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, 2020: 1,223,214.3850 units) IDFC Banking and PSU debt fund direct plan - growth 1,267,806.9250 units of Face Value of ` 10 per unit (March 31, 2020: 1,267,806.9250 units) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 260.63 237.83 246.01 227.10 247.74 227.75 a) Aggregate book value of quoted investments ---------------------------------------------------------- 692.68 692.68 692.68 692.68 692.68 ======================== 833.68 833.68 2,943.37 - 2,943.37 b) The amount invested in key man insurance policy by Pearl Global (HK) Limited has been pledged to bank to 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) ---------------------------------------------------------- 754.38 754.38 754.38 754.38 754.38 ======================== 3,132.30 3,132.30 2,387.62 30.00 2,357.62 c) secure banking facilities by the said subsidiary. In respect of Pearl Global Fareast Limited, financial assets at fair value through other comprehensive income with carrying value of ` 1121.67 Lakhs are pledged to bank to secure banking facilities granted to a subsidiary of the group. d) During the period ended December 31, 2020, Pearl Apparel Fashions Limited, a wholly owned subsidiary of the holding company has gone into voluntary liquidation and appointed the official liquidator in October, 2020. In effect of above resolution, the holding company has impaired its investment (Equity Instrument and Preference Equipment) in aforesaid subsidiary and recognised the same at its recoverable amount. 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, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 (Unsecured, considered good unless otherwise stated) Loans to employees Loans to related parties (refer note no. 46) Loans to others 25.78 300.00 1,405.46 ---------------------------------------------------------- 1,731.24 1,731.24 1,731.24 1,731.24 1,731.24 ========================= a) Loans to others bear interest rate ranging between 2%-2.5% per annum, and are receivable on or before December 31, 2022 7.21 - 2,158.23 ---------------------------------------------------------- 2,165.44 2,165.44 2,165.44 2,165.44 2,165.44 ========================= 7.63 - 2,437.62 ---------------------------------------------------------- 2,445.25 2,445.25 2,445.25 2,445.25 2,445.25 ========================= 23.84 300.00 1,383.90 ---------------------------------------------------------- 1,707.73 1,707.73 1,707.73 1,707.73 1,707.73 ========================= and March 31, 2023. b) The Group has no loans which have significant increase in credit risk and loans which are credit impaired. (refer rote No. 43) Pearl Global Industries Limited Annual Report 2020-21 117 Notes to consolidated financial statements for the year ended March 31, 2021 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 (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 no. 18) Other receivable Term deposits Loan to related parties TTTTTotototototaaaaal (l (l (l (l (AAAAA))))) (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 931.57 1,069.32 21.56 - 265.69 28.27 - 265.11 43.42 14.59 - - 78.38 28.16 8.45 - 1.13 ---------------------------------------------------------- 1,219.95 1,219.95 1,219.95 1,219.95 1,219.95 ========================= 1.16 ---------------------------------------------------------- 1,363.86 1,363.86 1,363.86 1,363.86 1,363.86 ========================= 31.22 ---------------------------------------------------------- 89.24 89.24 89.24 89.24 89.24 ========================= - ---------------------------------------------------------- 114.99 114.99 114.99 114.99 114.99 ========================= 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, 2021 and March 31, 2020 are: IIIIIncncncncncooooome Tme Tme Tme Tme Taaaaax rx rx rx rx reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in Sn Sn Sn Sn Stttttaaaaattttteeeeemememememennnnnt of P ofit and Lnd Lnd Lnd Lnd Lososososossssss ofit a ofit a t of Prrrrrofit a t of P t of P a)a)a)a)a) ofit a t of P x Exx Expppppeeeeennnnnsesesesese::::: x Exx Ex TTTTTaaaaax 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 bbbbb))))) r Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooomememememe r Co IIIIIncncncncncooooome Tme Tme Tme Tme Taaaaax rx rx rx rx reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On Otttttheheheheher Co r Co r Co 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 372.04 10.94 (995.74) ---------------------------------------------------------- (612.75) (612.75) (612.75) (612.75) (612.75) ======================== 774.67 31.76 144.15 ---------------------------------------------------------- 950.58 950.58 950.58 950.58 950.58 ======================== As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (23.22) (69.11) (342.72) ---------------------------------------------------------- (365.94) (365.94) (365.94) (365.94) (365.94) ======================== 346.57 ---------------------------------------------------------- 277.46 277.46 277.46 277.46 277.46 ======================== 118 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 set/(Liabiabiabiabiabilililililititititity)y)y)y)y) set/(L set/(L x As ccccc))))) NNNNNet Det Det Det Det Defeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax As x As x Asset/(L set/(L x As Recognised DTA- Pearl Global Industries Limited Recognised DTA- Pearl Global (HK) Limited Recognised DTA- Pearl Global Industries Limited Recognised DTA- Pearl Global (HK) Limited MAT Credit Entitlement ies) ies) x Assetsetsetsetsets/(Ls/(Ls/(Ls/(Ls/(Liabiabiabiabiabilililililititititities) x As x As TTTTTotototototaaaaal Nl Nl Nl Nl Net Det Det Det Det Defeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaax As ies) ies) x As (Amount in ` Lakh, unless otherwise stated) e sheetetetetet e she BBBBBaaaaalllllaaaaancncncncnce she e she e she As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 2,488.68 70.89 ---------------------------------------------------------- 2,559.57 2,559.57 2,559.57 2,559.57 2,559.57 ---------------------------------------------------------- 2,174.99 (5.56) ---------------------------------------------------------- 2,169.43 2,169.43 2,169.43 2,169.43 2,169.43 ---------------------------------------------------------- 76.85 76.85 76.85 76.85 76.85 ---------------------------------------------------------- 466.99 466.99 466.99 466.99 466.99 ======================== 2,236.70 63.90 ---------------------------------------------------------- 2,300.60 2,300.60 2,300.60 2,300.60 2,300.60 ---------------------------------------------------------- 2,561.86 5.58 ---------------------------------------------------------- 2,567.44 2,567.44 2,567.44 2,567.44 2,567.44 ---------------------------------------------------------- 106.14 106.14 106.14 106.14 106.14 ---------------------------------------------------------- (160.70) (160.70) (160.70) (160.70) (160.70) ======================== n of Effeffeffeffeffectctctctctivivivivive te te te te taaaaax Rx Rx Rx Rx Raaaaattttte ae ae ae ae and it t of deferrrrrrrrrreeeeed td td td td taaaaaxxxxx n of E n of E ddddd))))) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of E t of defe t of defe ise moveeeeemememememennnnnt of defe ise mov ise mov nd iteeeeemmmmmwwwwwise mov nd it nd it n of E t of defe ise mov nd it Since the Holding Company and its subsidiaries operates in different tax jurisdictions and has different tax laws, refer standalone financial statements of Holding Company and subsidiaries as at reporting date for effective tax reconciliation and itemwise movement of deferred tax. e)e)e)e)e) 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. fffff ))))) 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 NONONONONOTTTTTE 13 : NO E 13 : NO E 13 : NO Advance income tax (Net of provision of ` 1,288.03 lakh (March 31, 2020 : ` 1,288.03 lakh) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 771.37 763.99 ---------------------------------------------------------- 771.37 771.37 771.37 771.37 771.37 ======================== ---------------------------------------------------------- 763.99 763.99 763.99 763.99 763.99 ======================== Pearl Global Industries Limited Annual Report 2020-21 119 Notes to consolidated financial statements for the year ended March 31, 2021 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, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 (Unsecured, considered good, unless otherwise stated) Capital advances (Refer note no. 45(b) for capital commitments) Balance with government authorities Balance with government authorities - considered doubtful Less: Loss allowance Staff Advance Prepaid expenses Export incentive receivable Advances to suppliers Other receivables 185.04 15.03 22.74 (22.74) - 9.55 - - - ---------------------------------------------------------- 209.62 209.62 209.62 209.62 209.62 ========================= TTTTTotototototaaaaal (l (l (l (l (AAAAA))))) E 15 : INVVVVVEEEEENNNNNTTTTTOOOOORRRRRIIIIIEEEEESSSSS E 15 : IN E 15 : IN NONONONONOTTTTTE 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- Finished Goods 255.20 91.80 22.74 (22.74) - 425.82 - - - ---------------------------------------------------------- 772.82 772.82 772.82 772.82 772.82 ========================= - 2,103.76 - - 6.35 493.82 1,680.90 882.91 4,563.36 ---------------------------------------------------------- 9,731.09 9,731.09 9,731.09 9,731.09 9,731.09 ========================= - 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 ========================= (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 13,670.22 19.88 9,637.71 4,299.21 166.84 321.34 ---------------------------------------------------------- 28,115.20 28,115.20 28,115.20 28,115.20 28,115.20 (238.23) ---------------------------------------------------------- 27,876.97 27,876.97 27,876.97 27,876.97 27,876.97 ========================= 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 ========================= a) In case of Pearl Global (HK) Limited, Inventories amounting to ` 1,470.00 (March 2020: ` 1,507.80) are used as collateral for part of the bank facilities. E 16 : TRAAAAADDDDDE RE RE RE RE RECECECECECEEEEEIIIIIVVVVVAAAAABBBBBLLLLLEEEEESSSSS E 16 : TR NONONONONOTTTTTE 16 : TR E 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 - 24,217.21 - 656.18 (656.18) ---------------------------------------------------------- 24,217.21 24,217.21 24,217.21 24,217.21 24,217.21 ========================= - 22,042.47 - 377.33 (377.33) ---------------------------------------------------------- 22,042.47 22,042.47 22,042.47 22,042.47 22,042.47 ========================= 120 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 E 16 : TRAAAAADDDDDE RE RE RE RE RECECECECECEEEEEIIIIIVVVVVAAAAABBBBBLLLLLEEEEES S S S S (Co(Co(Co(Co(Connnnntttttddddd...)...)...)...)...) E 16 : TR NONONONONOTTTTTE 16 : TR E 16 : TR E 16 : TR s is as fos fos fos fos follllllololololowswswswsws::::: s is a s is a l debt nd doubtfffffuuuuul debt l 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 a)a)a)a)a) TTTTThe mov he 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 BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at bt bt bt bt beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t g of t g of the yea he yea g of t Add: Loss Allowance made during the year Less: Loss Allowance 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 377.33 278.85 - ---------------------------------------------------------- 656.18 ========================= 374.33 2.99 - ---------------------------------------------------------- 377.33 ========================= b) Refer note no. 46 for information about trade receivables from Related Party. c) The Group exposure to credit and currency risk, and loss allowances related to trade receivables are disclosed in note 43. d) For information on trade receivables pledged as security, refer note no. 21. 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 Balances with banks: - Current account - Deposits with original maturity of less than 3 months (refer note (a)) Cash on hand Cheque/drafts on hand 8,794.19 177.60 41.95 457.60 ---------------------------------------------------------- 9,471.34 9,471.34 9,471.34 9,471.34 9,471.34 ========================= For the purpose of the statement of cash flow, the cash and cash equivalent are same given above. a) 8,062.59 139.70 47.04 559.56 ---------------------------------------------------------- 8,808.89 8,808.89 8,808.89 8,808.89 8,808.89 ========================= E 18 : OTHHHHHEEEEER BR BR BR BR BAAAAANNNNNK BK BK BK BK BAAAAALLLLLAAAAANNNNNCCCCCEEEEESSSSS E 18 : OT E 18 : OT NONONONONOTTTTTE 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 ( refer note ‘a’ below) 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, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 - - 29.75 31.85 - 265.69 - - ---------------------------------------------------------- 265.69 265.69 265.69 265.69 265.69 - 265.11 - - ---------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 2,203.46 - 0.03 (0.03) ---------------------------------------------------------- 2,233.21 2,233.21 2,233.21 2,233.21 2,233.21 2,136.98 - 0.03 (0.03) ---------------------------------------------------------- 2,168.83 2,168.83 2,168.83 2,168.83 2,168.83 265.69 ---------------------------------------------------------- - ========================= 265.11 ---------------------------------------------------------- - ========================= - ---------------------------------------------------------- 2,233.21 ========================= - ---------------------------------------------------------- 2,168.83 ========================= a) Out of the total Fixed Deposits held in the name of the Company the fixed deposit with carrying value of ` 1,790.07 lakh (March 31, 2020 ` 1,041.21 lakh) are pledged as security with various banks. Pearl Global Industries Limited Annual Report 2020-21 121 Notes to consolidated financial statements for the year ended March 31, 2021 E 19 : SHAAAAARRRRRE CAE CAE CAE CAE CAPPPPPIIIIITTTTTAAAAALLLLL E 19 : SH NONONONONOTTTTTE 19 : SH E 19 : SH E 19 : SH AAAAAuuuuuttttthohohohohorrrrriseiseiseiseiseddddd 51,440,000* (March 31, 2020: 51,440,000) equity shares of ` 10 each 10,000* (March 31, 2020: 10,000) 4% Non Cumulative Redeemable Preference Shares of ` 10 each 3,256,000* (March 31, 2020: 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, 2020: 21,663,937) Equity Shares of ` 10 each fully paid up a)a)a)a)a) ShShShShShaaaaarrrrre Ce Ce Ce Ce Caaaaapppppitititititaaaaal Rl Rl Rl Rl Reeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion :n :n :n :n : EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre (e (e (e (e (````` 10 each f 10 each fuuuuulllllly ply ply ply ply paaaaaid uid uid uid uid uppppp))))) 10 each f 10 each f 10 each f il 1, 2019 il 1, 2019 BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 1, 2019 il 1, 2019 il 1, 2019 Changes during the year 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 Changes during the year ch 31, 2021 ch 31, 2021 BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ached td td td td to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses::::: ache ache s/ rigigigigighhhhhttttts as as as as attttttttttache s/ rs/ r s/ r bbbbb))))) TTTTTeeeeerrrrrmmmmms/ r ache (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 5,144.00 1.00 3,256.00 ---------------------------------------------------------- 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 ========================= NNNNNooooo. of sh . of shaaaaarrrrreseseseses . of sh . of sh . of sh --------------------------------------------------------------- 21,663,937 - ---------------------------------------------------------- 21,663,937 21,663,937 21,663,937 21,663,937 21,663,937 ---------------------------------------------------------- - ---------------------------------------------------------- 21,663,937 21,663,937 21,663,937 21,663,937 21,663,937 ---------------------------------------------------------- 5,144.00 1.00 3,256.00 ---------------------------------------------------------- 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 ========================= 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 ---------------------------------------------------------- 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. For the year ended March 31, 2021 and March 31, 2020, the Board of Directors has not proposed any dividend for distribution to shareholders. In the event of liquidation of the Group, the holders of equity shares will be entitled to receive remaining assets of the companies forming part of group after distribution of their preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. 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 ccccc))))) DDDDDetetetetetaaaaails of sh ils of sh n 5% shaaaaarrrrreseseseses n 5% sh n 5% sh g mo rs ho ils of sh n 5% sh me of Shaaaaarrrrrehoehoehoehoeholdeldeldeldelderrrrr me of Sh NNNNNaaaaame of Sh me of Sh me of Sh As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 NNNNNooooo. of sh . of sh . of sh . of shaaaaarrrrreseseseses . of sh HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % NNNNNooooo. of sh . of sh . of sh . of shaaaaarrrrreseseseses . of sh 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 Mrs. Payel Seth Mr. Deepak Seth Mr. Pulkit Seth Mr. Sanjiv Dhireshbhai Shah * Number of Shares are given in absolute numbers. 4,413,635 2,862,145 6,947,621 1,881,004 20.37 13.21 32.07 8.68 4,413,635 2,862,145 6,947,621 1,553,274 HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % 20.37 13.21 32.07 7.17 122 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 E 20 : OTHHHHHEEEEER EQR EQR EQR EQR EQUUUUUIIIIITTTTTYYYYY E 20 : OT NONONONONOTTTTTE 20 : OT E 20 : OT E 20 : OT General Reserve Securities Premium Capital Redemption Reserve Amalgamation Reserve Foreign Currency Translation Reserve Change in investment through OCI Retained Earnings Cash Flow Hedge Reserve (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 4,204.36 17,103.90 95.00 625.95 5,448.73 (309.53) 23,668.60 (1,281.96) ---------------------------------------------------------- 49,555.07 49,555.07 49,555.07 49,555.07 49,555.07 ========================= 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 ========================= I.I.I.I.I. For Movement during the period in Other Equity, refer Statement of Changes in Equity. ose of reseeseeseeseeserrrrrvvvvveseseseses ose of r ose of r nd purprprprprpose of r nd pu nd pu IIIIII.I.I.I.I. NNNNNaaaaatttttuuuuurrrrre ae ae ae ae and pu ose of r nd pu PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs a)a)a)a)a) GGGGGeeeeenenenenenerrrrraaaaal rl rl rl rl reseeseeseeseeserrrrrvvvvveeeee (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 Balance as at beginning/ end of the year Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at an specified percentage in accordance with Companies (Transfer of profits to Reserve) Rules 1975. Consequent to introduction of the Companies Act 2013, there is no such requirement to mandatorily transfer a specified percentage of the net profit to general reserve. bbbbb))))) ies prrrrreeeeemmmmmiuiuiuiuiummmmm ies pies p ies p SSSSSeeeeecucucucucurrrrrititititities p Balance as at beginning/ end of the year 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 Balance as at beginning/ end of the year This Reserve has been created at the time of business combination with companies in earlier years in accordance with the provisions of the Companies Act, 2013. ddddd))))) AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee Balance as at beginning/ end of the year 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) FFFFFooooorrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy ty ty ty ty trrrrraaaaannnnnslslslslslaaaaatttttioioioioion rn rn rn rn reseeseeseeseeserrrrrvvvvveeeee Balance as at beginning/ end of the year The exchange differences arising from the translation of financial statements is recognized in other comprehensive income and is presented within equity. 4,204.36 4,204.36 17,103.90 17,103.90 95.00 95.00 625.95 625.95 5,448.73 4,623.26 Pearl Global Industries Limited Annual Report 2020-21 123 Notes to consolidated financial statements for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs fffff ))))) RRRRRetetetetetaaaaaiiiiinenenenened ead ead ead ead earrrrrnnnnniiiiinnnnngggggsssss (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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 Balance as at beginning/ end of the year 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. ggggg ))))) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee Balance as at beginning/ end of the year 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. hhhhh))))) CCCCChhhhhaaaaannnnnggggge ie ie ie ie in in in in in innnnnvvvvvesesesesestttttmememememennnnnt tt tt tt tt thhhhhrrrrrououououougggggh Oh Oh Oh Oh Otttttheheheheher Co r Commmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive Ie Ie Ie Ie Incncncncncooooome (Ome (Ome (Ome (Ome (OCCCCCI)I)I)I)I) r Co r Co r Co represents fair valuation of investments of subsidiary company routed through OCI. Balance as at beginning/ end of the year 23,668.60 21,989.10 (1,281.96) (645.23) (309.53) (105.34) 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) Term Loan* - - Vehicle Loans From Financials Institutional (Secured) - Vehicle Loans From others - unsecured (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 12,218.39 118.30 9,695.14 93.22 4,044.86 36.58 2,639.36 91.00 66.84 58.80 ---------------------------------------------------------- 12,462.33 12,462.33 12,462.33 12,462.33 12,462.33 112.39 82.93 ---------------------------------------------------------- 9,983.68 9,983.68 9,983.68 9,983.68 9,983.68 48.55 - ---------------------------------------------------------- 4,129.99 4,129.99 4,129.99 4,129.99 4,129.99 38.85 - ---------------------------------------------------------- 2,769.20 2,769.20 2,769.20 2,769.20 2,769.20 Less: Amount disclosed under other financial liabilities as ‘Current maturities of long-term borrowings’ (refer note no. 22) - ---------------------------------------------------------- 12,462.33 12,462.33 12,462.33 12,462.33 12,462.33 ======================== - ---------------------------------------------------------- 9,983.68 9,983.68 9,983.68 9,983.68 9,983.68 ======================== 4,129.99 ---------------------------------------------------------- - - - - - ======================== 2,769.20 ---------------------------------------------------------- - - - - - ======================== *includes loans which are carried at amortised cost g Commmmmpppppaaaaannnnnyyyyy: Following security details rank pari passu (first, second, exclusive or g Co ct of Hoooooldldldldldiiiiinnnnng Co g Co ct of Hct of H ct of H e of Seeeeecucucucucurrrrrititititity iy iy iy iy in rn rn rn rn resesesesespppppeeeeect of H e of S iiiii))))) NNNNNaaaaatttttuuuuurrrrre of S e of S g Co e of S equitable as per respective sanction letters) amongst different lenders under multi bank arrangement for long term borrowings: a) Hypothecation over the entire movable/ Immovable fixed assets of the Company including creation of negative lien on the assets which are unencumbered and are not proposed to be mortgaged to any of the lenders. b) Equitable mortgage over Industrial plot no. (i) 16/17, phase-6, Udyog Vihar, Gurugram, (ii) 597 and 603, RICCO Industrial Area, Bhiwadi, Rajasthan, (iii) 751, Pace City-II, Sector 37, Gurugram, (iv) Land & Building located at Survey No. 262A in Aryapakkam Village at Kancheepuram, (v) Company’s property at Plot No. 51, Sector 32, Gurugram, and (vi) Land and building at Chennai and Bangalore Plant of the Company. 124 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 c) Hypothecation of the Company’s entire current assets including stocks of raw material, stock in process, finished goods, spares and book debts (present & future). d) Pari-Passu charge on FDR of ` 58. Other FDR’s pledged with specific banks- PNB, UCO & IndusInd Bank are e) ` 607.02 (March 31, 2020: ` 134.03) Irrevocable and Unconditional Personal Guarantee of Mr. Deepak Seth (Promoter Director) and/or Mr. Pulkit Seth (Managing Director). l Globbbbbaaaaal (Hl (Hl (Hl (Hl (HK) LK) LK) LK) LK) Liiiiimmmmmitititititeeeeeddddd,,,,, l Glo ct of Peaeaeaeaearrrrrl Glo l Glo ct of P iiiiiiiiii))))) SSSSSeeeeecucucucucurrrrrititititity iy iy iy iy in rn rn rn rn resesesesespppppeeeeect of P ct of P l Glo ct of P - - - As at March 31, 2021, property, plant and equipment of the subsidiary in Vietnam with net carrying amount of ` 416.22 (2020: ` 645.64) are pledged to secure the bank borrowings. As at March 31, 2021, the leasehold land & building in Hong Kong with net carrying amount of ` 3,951.05 (2020: ` 4,103.14) were pledged to the bank to secure for the general banking facilities granted to the group. As at March 31, 2021, machineries of the subsidiary in Indonesia with net carrying amount of ` 2,572.50 were pledged to bank to secure for the general banking facilities granted to the group. ofileofile ofileofile iiiiiiiiiiiiiii))))) MMMMMaaaaatttttuuuuurrrrrititititity Py Py Py Py Prrrrrofile PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs 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 From others - unsecured 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 4,044.86 4,023.28 2,998.31 85.13 103.68 36.81 - - - BBBBBeeeeeyoyoyoyoyondndndndnd 2023-24 2023-24 2023-24 2023-24 2023-24 5,196.80 44.66 58.80 iv)iv)iv)iv)iv) Vehicle loans are secured against hypothecation of respective vehicles. v)v)v)v)v) The above loan(s) carries rate of interest ranging between 7.40% 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 Working capital loan from banks(secured) - bbbbb))))) Rupee loan 19,990.64 ---------------------------------------------------------- 19,990.64 19,990.64 19,990.64 19,990.64 19,990.64 ======================== 25,715.32 ---------------------------------------------------------- 25,715.32 25,715.32 25,715.32 25,715.32 25,715.32 ======================== g Cog Commmmmpppppaaaaannnnnyyyyy ::::: The Company has entered into borrowing arrangements with lenders g Cog Co e of secucucucucurrrrrititititity iy iy iy iy in rn rn rn rn resesesesespppppeeeeect of Hct of Hct of Hct of Hct of Hoooooldldldldldiiiiinnnnng Co e of se a)a)a)a)a) NNNNNaaaaatttttuuuuurrrrre of se e of se e of se under Consortium Arrangement for short term borrowings. The security details set out under Note 21 ranks pari passu (as per respective sanction letters) amongst all secured lenders for short term and long term borrowings. l Globbbbbaaaaal (Hl (Hl (Hl (Hl (HK) LK) LK) LK) LK) Liiiiimmmmmitititititeeeeeddddd,,,,, l Glo ct of Peaeaeaeaearrrrrl Glo l Glo ct of P SSSSSeeeeecucucucucurrrrrititititity iy iy iy iy in rn rn rn rn resesesesespppppeeeeect of P ct of P l Glo ct of P The bank borrowing facilities are secured by Group’s property, plant and equipment, inventories, trade receivables, Corporate Guarantee of the ultimate holding company and a fellow subsidiaries and director’s personal guarantee. ct of Nooooorp Krp Krp Krp Krp Knnnnnit Iit Iit Iit Iit Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd,,,,, SSSSSeeeeecucucucucurrrrrititititity iy iy iy iy in rn rn rn rn resesesesespppppeeeeect of N ct of N ct of N ct of N - 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. As at March 31, 2021, Fixed Deposit of ` 347 (March 31, 2020: ` 355) Personal Guarantee by the promoter director of the Company. ccccc))))) - - Pearl Global Industries Limited Annual Report 2020-21 125 Notes to consolidated financial statements for the year ended March 31, 2021 (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, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 Security deposit Book overdraft Current maturities of long-term borrowings (refer note 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 137.28 - - - - - - - ---------------------------------------------------------- 137.28 137.28 137.28 137.28 137.28 ======================== 246.97 - - - - - - - ---------------------------------------------------------- 246.97 246.97 246.97 246.97 246.97 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 - 261.51 4,129.99 23.26 29.75 203.74 12.34 796.14 ---------------------------------------------------------- 5,456.74 5,456.74 5,456.74 5,456.74 5,456.74 ======================== 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 ======================== NNNNNotototototeseseseses::::: a) The Group’s exposure to market and liquidity risk related to other financial liabilities is disclosed in note 43. 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 E 23 : PR NONONONONOTTTTTE 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 note no. 39) Provision for gratuity (refer note no. 39) Other employee benefits E 24 : OTHHHHHEEEEER LR LR LR LR LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS E 24 : OT NONONONONOTTTTTE 24 : OT E 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 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 618.71 1,625.06 66.34 ---------------------------------------------------------- 2,310.12 2,310.12 2,310.12 2,310.12 2,310.12 ======================== 554.06 1,456.54 69.12 ---------------------------------------------------------- 2,079.72 2,079.72 2,079.72 2,079.72 2,079.72 ======================== 25.85 83.19 - ---------------------------------------------------------- 109.04 109.04 109.04 109.04 109.04 ======================== 23.96 44.44 - ---------------------------------------------------------- 68.40 68.40 68.40 68.40 68.40 ======================== (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 2,963.62 7.58 42.15 - - ---------------------------------------------------------- 3,013.35 3,013.35 3,013.35 3,013.35 3,013.35 ======================== 2,963.62 8.58 25.71 - - ---------------------------------------------------------- 2,997.91 2,997.91 2,997.91 2,997.91 2,997.91 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 - 145.61 15.06 577.33 0.56 ---------------------------------------------------------- 738.57 738.57 738.57 738.57 738.57 ======================== MMMMMaaaaarrrrrch 31, ch 31, ch 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 ======================== 126 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 481.71 24,195.11 --------------------------------------------------------- 24,676.82 24,676.82 24,676.82 24,676.82 24,676.82 ======================== 331.05 17,775.62 --------------------------------------------------------- 18,106.67 18,106.67 18,106.67 18,106.67 18,106.67 ======================== a) b) For information of amount of trade payable to related parties, refer note no. 46 Information as required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for the year ended March 31, 2021 is given below: (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 Group in terms of section 16 of MSMED Act, 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 481.71 - 331.05 - - - - - - - - - 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. c) The Group’s exposure to market and liquidity risk related to trade payables is disclosed in note 43. E 26 : CURRRRRRRRRREEEEENNNNNT TT TT TT TT TAAAAAX LIX LIX LIX LIX LIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES (NS (NS (NS (NS (NEEEEETTTTT))))) E 26 : CU NONONONONOTTTTTE 26 : CU E 26 : CU E 26 : CU Provision for income tax (Net of advance tax ` 278.60 (March 31, 2020 ` 717.45) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 93.44 --------------------------------------------------------- 93.44 93.44 93.44 93.44 93.44 ======================== 57.23 --------------------------------------------------------- 57.23 57.23 57.23 57.23 57.23 ======================== Pearl Global Industries Limited Annual Report 2020-21 127 Notes to consolidated financial statements for the year ended March 31, 2021 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) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 145,861.69 - 3,230.97 --------------------------------------------------------- 149,092.65 149,092.65 149,092.65 149,092.65 149,092.65 ======================== 163,325.79 129.54 5,057.25 --------------------------------------------------------- 168,512.58 168,512.58 168,512.58 168,512.58 168,512.58 ======================== 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. bbbbb))))) DisaDisaDisaDisaDisaggggggggggrrrrreeeeegggggaaaaatttttioioioioion of r n of reeeeevvvvveeeeennnnnueueueueue: : : : : The table below presents disaggregated revenues from contracts with customers on the basis of n of r n of r n of r 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) FFFFFooooor tr tr tr tr the yea he year er er er er endendendendendeddddd he yea he yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 3,614.27 145,478.38 --------------------------------------------------------- 149,092.65 149,092.65 149,092.65 149,092.65 149,092.65 ======================== 8,403.09 160,109.49 --------------------------------------------------------- 168,512.58 168,512.58 168,512.58 168,512.58 168,512.58 ======================== 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 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 149,165.29 168,557.47 72.64 --------------------------------------------------------- 149,092.65 149,092.65 149,092.65 149,092.65 149,092.65 ======================== 44.89 --------------------------------------------------------- 168,512.58 168,512.58 168,512.58 168,512.58 168,512.58 ======================== siderrrrraaaaatttttioioioioion an an an an assssssososososociaciaciaciaciattttteeeeed wd wd wd wd wititititith Sh Sh Sh Sh Saaaaaleslesleslesles::::: side le Connnnnside side le Co ddddd))))) VVVVVaaaaarrrrriabiabiabiabiable Co le Co side le Co The companies under the Group estimates the variable consideration using the most likely amount or expected value method, whichever approach best predicts the amount of consideration based on the terms of contract and available information and updates the estimates in each reporting period. e)e)e)e)e) Disclos ct of Expppppooooorrrrrt It It It It Incncncncnceeeeennnnntttttivivivivive (He (He (He (He (Hoooooldldldldldiiiiinnnnng Co Disclos Disclos Disclosuuuuurrrrre ie ie ie ie in rn rn rn rn resesesesespppppeeeeect of Ex ct of Ex ct of Ex g Co g Co g Commmmmpppppaaaaannnnny)y)y)y)y) Disclos ct of Ex g Co As per the scheme on Remission of Duties and Taxes on Export Products (RoDTEP) of Government of India, the Company is eligible to claim export incentives representing refund of embedded central, state and local duties/ taxes. All the incentives previously under Merchandise Export from India Scheme (MEIS) and the RoSCTL (Rebate of State and Central Taxes and Levies) are now under the purview of the RoDTEP scheme. The Scheme is effective from January 1, 2021, however the incentive rates are yet to be notified by the Authorities. For the period from January 1, 2021 to March 31, 2021, the Company has recognised ` 421.15 of income towards RoDTEP and 128 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 corresponding receivable on the basis of best estimate of the management, which is lower than the rates applicable under erstwhile scheme applicable upto December 31, 2020. For measurement of such income, significant estimates and judgements were made by the management which includes eligibility of export transaction for the claim, timing of processing of such claim and its realization and the rate expected to be notified by the Government authorities in this regard. The estimation of rate involves a high level of uncertainity considering the delay in notification of the rate. The Company has performed sensitivity analysis on sources of estimation, uncertainity and appropriately considered the same while recognizing such income. E 28 : OTHHHHHEEEEER IR IR IR IR INNNNNCCCCCOOOOOMMMMMEEEEE E 28 : OT NONONONONOTTTTTE 28 : OT E 28 : OT E 28 : OT Interest income - On Fixed deposits - On loans and advances - On income tax refund - On Investment Other non-operating income: Rental income Foreign exchange fluctuation Government grant received Amortisation of deferred rental income 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 Add: Impact of exchange fluctuation/ re-instatement Less:- Balance at the end of the Year Total Raw Material Consumption 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 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 103.92 173.99 - 59.83 770.91 458.01 64.66 36.78 16.61 255.85 409.91 --------------------------------------------------------- 2,350.49 2,350.49 2,350.49 2,350.49 2,350.49 ======================== 967.85 174.64 0.16 - 980.53 1,700.72 - 32.08 73.79 29.41 946.31 --------------------------------------------------------- 4,905.49 4,905.49 4,905.49 4,905.49 4,905.49 ======================== (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 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 12,245.71 69,336.18 (174.43) --------------------------------------------------------- 81,407.45 13,670.22 --------------------------------------------------------- 67,737.23 67,737.23 67,737.23 67,737.23 67,737.23 ======================== 10,669.98 77,404.21 374.97 --------------------------------------------------------- 88,449.15 12,245.71 --------------------------------------------------------- 76,203.44 76,203.44 76,203.44 76,203.44 76,203.44 ======================== (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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 9,337.91 --------------------------------------------------------- 9,337.91 9,337.91 9,337.91 9,337.91 9,337.91 ======================== 5,210.29 --------------------------------------------------------- 5,210.29 5,210.29 5,210.29 5,210.29 5,210.29 ======================== Pearl Global Industries Limited Annual Report 2020-21 129 Notes to consolidated financial statements for the year ended March 31, 2021 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 (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 Add: Impact of exchange fluctuation/ re-instatement 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 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 no. 39) Compensated absences (refer note no. 39) Staff Training & Welfare Expenses (((((AAAAA))))) (B)(B) (B)(B) (B) E 33 : FINNNNNAAAAANNNNNCCCCCE CE CE CE CE COOOOOSSSSSTTTTT E 33 : FI NONONONONOTTTTTE 33 : FI E 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 12,212.16 1,611.09 - (142.06) --------------------------------------------------------- 13,681.19 13,681.19 13,681.19 13,681.19 13,681.19 --------------------------------------------------------- 9,637.71 4,060.98 166.84 --------------------------------------------------------- 13,865.53 13,865.53 13,865.53 13,865.53 13,865.53 --------------------------------------------------------- (184.34) (184.34) (184.34) (184.34) (184.34) ======================== 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 --------------------------------------------------------- 12,212.16 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) ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 30,727.62 578.86 413.62 591.18 223.57 --------------------------------------------------------- 32,534.85 32,534.85 32,534.85 32,534.85 32,534.85 ======================== 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 ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2,585.82 1.51 837.64 - 40.24 660.13 --------------------------------------------------------- 4,125.34 4,125.34 4,125.34 4,125.34 4,125.34 ======================== 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 ======================== 130 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 E 34 : DEPPPPPRRRRRECECECECECIIIIIAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD AMOMOMOMOMORRRRRTTTTTIIIIIZZZZZAAAAATTTTTIIIIIOOOOON EN EN EN EN EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE E 34 : DE NONONONONOTTTTTE 34 : DE E 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-of-use assets (refer note no. 48) 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 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 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2,722.09 86.77 39.89 1,561.80 --------------------------------------------------------- 4,410.55 4,410.55 4,410.55 4,410.55 4,410.55 ======================== 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 ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 15,129.20 1,011.51 1,843.21 310.24 71.06 544.76 3,840.85 582.92 75.12 7.18 866.88 524.45 3,893.71 385.14 619.65 422.45 90.98 56.90 278.86 27.10 - 3,029.17 --------------------------------------------------------- 33,611.35 33,611.35 33,611.35 33,611.35 33,611.35 ======================== 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 ======================== Pearl Global Industries Limited Annual Report 2020-21 131 Notes to consolidated financial statements for the year ended March 31, 2021 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) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 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 64.04 10.00 7.55 --------------------------------------------------------- 81.59 81.59 81.59 81.59 81.59 ======================== b) Miscellaneous expenses includes expense towards purchase of Electoral Boards amounting to ` Nil (March 31, 2020: ` 160) 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. 62.14 27.14 1.70 --------------------------------------------------------- 90.98 90.98 90.98 90.98 90.98 ======================== E 36 : EXCCCCCEEEEEPPPPPTTTTTIIIIIOOOOONNNNNAAAAAL ITL ITL ITL ITL ITEEEEEMMMMMSSSSS E 36 : EX E 36 : EX NONONONONOTTTTTE 36 : EX E 36 : EX Loss on sale of Property, Plant & Equipment Profit on account of compulsory acquisition of land Enhanced Compensation on land acquisition by NHAI Property, plant and equipment written off Impairment of investment in subsidiaries Impairment of Goodwill a) The figures in bracket above represents income/ profit 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))))) 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 IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill 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 Foreign exchange translation reserve Fair valuation of investment in mutual fund Hedging Reserve through OCI Income tax expense (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 1,035.93 - (2,335.15) - 33.91 - --------------------------------------------------------- (1,265.31) (1,265.31) (1,265.31) (1,265.31) (1,265.31) ======================== 27.84 (184.47) - 0.23 - 225.12 --------------------------------------------------------- 68.72 68.72 68.72 68.72 68.72 ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 (48.22) (23.22) (825.45) 173.25 979.45 (342.72) --------------------------------------------------------- (86.91) (86.91) (86.91) (86.91) (86.91) ======================== 340.22 (69.11) 2,586.30 (38.29) (991.80) 346.57 --------------------------------------------------------- 2,173.89 2,173.89 2,173.89 2,173.89 2,173.89 ======================== 132 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 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 FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 1,727.11 2,156.43 21,663,937 ` 10 7.97 21,663,937 ` 10 9.95 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 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. 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 he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 419.38 138.43 14.03 7.03 --------------------------------------------------------- 578.86 578.86 578.86 578.86 578.86 ======================== 638.39 241.31 15.00 28.87 --------------------------------------------------------- 923.57 923.57 923.57 923.57 923.57 ======================== The contribution payable to these schemes by the Group are at the rates specified in the rules of the schemes. se of Peaeaeaeaearrrrrl Glo se of P se of P nefit Obllllligigigigigaaaaatttttioioioioion in in in in in cn cn cn cn caaaaase of P l Globbbbbaaaaal Hl Hl Hl Hl HK LK LK LK LK Liiiiimmmmmitititititeeeeeddddd nefit Ob nefit Ob bbbbb))))) EEEEEmmmmmppppplololololoyeyeyeyeyee Be Be Be Be Beeeeenefit Ob l Glo l Glo se of P nefit Ob l Glo 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 PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr he Gr ic of Indondondondondonesia nesia nesia ic of I ic of I nesia he Gr nesia ic of I 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. PPPPPooooolllllicicicicicy foy foy foy foy for tr tr tr tr the Gr 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 ic of V ic of V ic of Vietietietietietnnnnnaaaaammmmm he Gr ic of V 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 Pearl Global Industries Limited Annual Report 2020-21 133 Notes to consolidated financial statements for the year ended March 31, 2021 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. nefit plllllaaaaannnnnsssss nefit p nefit p ccccc))))) DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p 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. iiiii))))) GrGrGrGrGraaaaatttttuuuuuititititity sche y schemememememe y 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) iiiiiiiiii))))) OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefitsssss 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. 134 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 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 by actuary’s of respective companies consolidated in these financial statements. nefit obbbbbllllligigigigigaaaaatttttioioioioionnnnn nefit o CCCCChhhhhaaaaannnnnggggge ie ie ie ie in bn bn bn bn beeeeenefit o nefit o nefit o 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 Foreign currency translation reserve Actuarial (gain) / loss on obligations he yea he yea nd of t nd of t ue of obbbbbllllligigigigigaaaaatttttioioioioion an an an an as as as as as at tt tt tt tt the ehe ehe ehe ehe end of t ue of o ue of o PPPPPrrrrreseeseeseeseesennnnnt vt vt vt vt vaaaaalllllue of o he yearrrrr nd of the yea he yea nd of t ue of o (Amount in ` Lakh, unless otherwise stated) As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 654.60 44.29 89.46 - (92.36) - (41.19) 654.80 654.80 654.80 654.80 654.80 1,209.60 87.27 272.13 (54.93) (226.61) (23.55) 78.57 1,342.49 1,342.49 1,342.49 1,342.49 1,342.49 617.55 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 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: nefit nefit he year ir ir ir ir inclnclnclnclncludeudeudeudeuded ud ud ud ud undendendendender er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit he yea he yea CosCosCosCosCost fot fot fot fot for tr tr tr tr the yea nefit nefit he yea Current service cost Past service cost Interest cost Expected return on plan assets Actuarial (gain) / loss NNNNNet cet cet cet cet cosososososttttt (Amount in ` Lakh, unless otherwise stated) ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 89.46 - 44.29 (24.55) - 109.19 109.19 109.19 109.19 109.19 272.13 (54.93) 87.27 - - 304.48 304.48 304.48 304.48 304.48 111.96 - 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 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 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 ue of t (Amount in ` Lakh, unless otherwise stated) Fair value of plan assets at the beginning Expected return on plan assets Contributions Benefits paid Actuarial gains / (losses) on the plan assets FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of p ue of p ue of p ue of plllllaaaaan an an an an assssssetsetsetsetsets as as as as at tt tt tt tt the ehe ehe ehe ehe endndndndnd ue of p As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 363.22 24.55 4.43 (92.36) (10.84) 289.01 289.01 289.01 289.01 289.01 - - - - - - - - - - 388.39 26.26 6.90 (47.38) (10.93) 363.22 363.22 363.22 363.22 363.22 - - - - - - - - - - Pearl Global Industries Limited Annual Report 2020-21 135 Notes to consolidated financial statements for the year ended March 31, 2021 I is as fos fos fos fos follllllololololowswswswsws::::: I is a n/loss rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI is a I is a n/los il of actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin/los n/los il of act ggggg ))))) DDDDDetetetetetaaaaail of act il of act I is a n/los il of act (Amount in ` Lakh, unless otherwise stated) 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) fo TTTTTotototototaaaaal gl gl gl gl gaaaaaiiiiin / (n / (n / (n / (n / (loslosloslosloss) fo s) fos) fo he yea As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (41.19) 10.84 (30.36) (30.36) (30.36) (30.36) (30.36) 78.57 - 78.57 78.57 78.57 78.57 78.57 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (75.64) 10.93 (64.69) (64.69) (64.69) (64.69) (64.69) (275.51) - (275.51) (275.51) (275.51) (275.51) (275.51) 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. The actuarial assumptions include economic assumptions of discount rate and rate of increase in compensation levels. Other assumptions considered are demographic assumptions and withdrawal rate while calculating the obligations as at year end. ies reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in tn tn tn tn the Bhe Bhe Bhe Bhe Baaaaalllllaaaaancncncncnce She 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 s) forrrrr nd expppppeeeeerrrrrieieieieiencncncncnce adj ies r ies r s) fo s) fo s) / liabiabiabiabiabilililililititititities r s) / l s) / l nd ex nd ex et (assssssetsetsetsetsets) / l hhhhh))))) NNNNNet (a e Sheet aet aet aet aet and ex e She e She et (a et (a n act e adj ies r s) fo s) / l nd ex et (a e She 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 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 (Amount in ` Lakh, unless otherwise stated) ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 654.80 289.01 (365.79) (365.79) (365.79) (365.79) (365.79) 1,342.49 - (1,342.49) (1,342.49) (1,342.49) (1,342.49) (1,342.49) 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 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) r signnnnnificificificificificaaaaannnnnt at at at at assssssssssuuuuummmmmptptptptptioioioioionnnnns is a iiiii))))) A qA qA qA qA quuuuuaaaaannnnntttttitititititaaaaatttttivivivivive see see see see sennnnnsitsitsitsitsitivivivivivititititity ay ay ay ay annnnnaaaaalysis fo r sig r sig lysis fo lysis fo s showwwwwn bn bn bn bn beloeloeloeloelowwwww::::: s sho s sho s is a s is a lysis for sig s is as sho r sig lysis fo s sho s is a (Amount in ` Lakh, unless otherwise stated) ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) AAAAA..... DiscDiscDiscDiscDiscououououounnnnnt rt rt rt rt raaaaattttteeeee Effect on DBO due to 0.5% increase in Discount Rate Effect on DBO due to 0.5% decrease in Discount Rate (61.46) 71.91 775.66 1,002.92 (61.88) 72.58 590.80 786.16 B.B.B.B.B. y escaaaaalllllaaaaatttttioioioioion rn rn rn rn raaaaattttteeeee y esc SSSSSaaaaalllllaaaaarrrrry 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 (63.00) 773.73 588.74 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. (63.40) 72.51 999.87 73.15 787.35 136 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 jjjjj))))) 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. k)k)k)k)k) Refer respective standalone financial statements of Holding Company and the Subsidiary Companies forming part of the Group for Maturity Profile of Defined Benefit obligation E 40 : CAPPPPPIIIIITTTTTAAAAAL ML ML ML ML MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT E 40 : CA E 40 : CA NONONONONOTTTTTE 40 : CA E 40 : CA The Group’s objectives when managing capital are to: - safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and - maintain an appropriate capital structure of debt and equity. The Board of Directors have the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international markets so as to maintain investors, creditors and markets confidence and to sustain future development of the business. The Group monitors capital, using a medium term view ranging between three to five years, on the basis of a number of financial ratios generally used by the industry. The Group monitors capital structure using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt comprises of long term and short term borrowings less cash and cash equivalents. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of reporting periods were as follows: (Amount in ` Lakh, unless otherwise stated) et debt (AAAAA))))) et debt ( NNNNNet debt ( et debt ( et debt ( Borrowings (refer note no. 21) Current maturity of long term loans (refer note no. 22) Interest accrued but not due on borrowings (refer note no. 22) Less: cash and cash equivalents (refer note no. 17) As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 35,699.01 2,769.20 37.48 (8,808.89) --------------------------------------------------------- 29,696.81 29,696.81 29,696.81 29,696.81 29,696.81 --------------------------------------------------------- 2,166.39 47,891.00 --------------------------------------------------------- 50,057.39 50,057.39 50,057.39 50,057.39 50,057.39 --------------------------------------------------------- 79,754.21 79,754.21 79,754.21 79,754.21 79,754.21 --------------------------------------------------------- 37.24% 37.24% 37.24% 37.24% 37.24% --------------------------------------------------------- No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2021 and March 31, 2020. As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 32,452.97 4,129.99 23.26 (9,471.34) --------------------------------------------------------- 27,134.88 27,134.88 27,134.88 27,134.88 27,134.88 --------------------------------------------------------- 2,166.39 49,555.07 --------------------------------------------------------- 51,721.46 51,721.46 51,721.46 51,721.46 51,721.46 --------------------------------------------------------- 78,856.32 78,856.32 78,856.32 78,856.32 78,856.32 --------------------------------------------------------- 34.41% 34.41% 34.41% 34.41% 34.41% --------------------------------------------------------- Equity share capital (refer note no. 19) Other equity (refer note no. 20) CCCCCaaaaapppppitititititaaaaal al al al al and net debt ( nd net debt ( nd net debt ( A+B=C) A+B=C) nd net debt (A+B=C) A+B=C) nd net debt ( A+B=C) GGGGGeaeaeaeaearrrrriiiiinnnnng rg rg rg rg raaaaatttttio ( io ( io ( io (A/C)A/C)A/C)A/C)A/C) io ( TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaapppppitititititaaaaal (B) l (B) l (B) l (B) l (B) Pearl Global Industries Limited Annual Report 2020-21 137 Notes to consolidated financial statements for the year ended March 31, 2021 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 (((((iiiii))))) 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. The Hedging Practice and its corresponding hedge accounting is mainly followed by the Holding Company. 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 (((((iiiiiiiiii))))) 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 AsAsAsAsAssetsetsetsetsetsssss ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 12.34 991.80 The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale transactions. The cash flow hedges of the forecasted sale transactions for the year ended March 31, 2021 were assessed to be highly effective and unrealised profit of ` 979.45 lakh, with a deferred tax liability of ` 342.72 lakh relating to the hedging instruments, is included in OCI (March 31, 2020: Unrealised loss of ` 991.80 lakh with a corresponding deferred tax assets of ` 346.57 lakh). (((((iiiiiiiiiiiiiii))))) MMMMMaaaaatttttuuuuurrrrrititititity Py Py Py Py Prrrrrofile ofileofile::::: The following table includes the maturity profile of the foreign exchange forward contracts: ofileofile PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2021 (INR) Notional amount (in USD) Average forward rate (USD/INR) As at March 31, 2020 (INR) 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 43.00 72.53 1 t1 t1 t1 t1 to 3o 3o 3o 3o 3 momomomomonnnnnttttthhhhhsssss - - - 5,617.99 77.00 72.96 3 t3 t3 t3 t3 to 6o 6o 6o 6o 6 momomomomonnnnnttttthhhhhsssss - - - 6,316.02 85.92 73.51 6 t6 t6 t6 t6 to 9o 9o 9o 9o 9 momomomomonnnnnttttthhhhhsssss - - - 4,313.64 58.00 74.37 9 t9 t9 t9 t9 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss 2,278.85 30.00 75.96 4,625.57 61.00 75.83 TTTTTotototototaaaaalllll 2,278.85 30.00 75.96 23,992.21 324.92 73.84 et is as fos fos fos fos follllllololololowswswswsws::::: et is a et is a e she he hedddddgggggiiiiinnnnng ig ig ig ig innnnnssssstttttrrrrruuuuumememememennnnnttttts os os os os on tn tn tn tn the bhe bhe bhe bhe baaaaalllllaaaaancncncncnce she e she he he he he act of t (((((iv)iv)iv)iv)iv) TTTTThe ihe ihe ihe ihe immmmmpppppact of t act of t e sheet is a act of the he et is a e she he he act of t PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Fair value of foreign currency forward exchange contract designated as hedging instruments LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 AsAsAsAsAssetsetsetsetsetsssss ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 12.34 991.80 138 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 The line item in Balance Sheet where Hedge instrument is disclosed is Other Financial Liabilities. The changes in fair value of forward exchange contract are disclosed as under: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Foreign currency risk forward contract- As at March 31, 2021 Foreign currency risk forward contract- As at March 31, 2020 AAAAAmoumoumoumoumounnnnnt (t (t (t (t (`````))))) 979.45 (991.80) (v)(v)(v)(v)(v) 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 ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 Highly probable forecast sales act of hedddddgggggiiiiinnnnng og og og og on en en en en eqqqqquuuuuititititityyyyy act of he act of he (v(v(v(v(viiiii))))) 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 979.45 (991.80) LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of t of t of t of t of nd lossssss nd los nd los ofit a ofit a ppppprrrrrofit a ofit and los nd los ofit a Cash Flow Hedge Reserve (OCI) Cash Flow Hedge Reserve (OCI) AAAAAmoumoumoumoumounnnnnttttt sified frd frd frd frd frooooommmmm sifie sifie r r r r reeeeeclclclclclaaaaassssssifie sifie OOOOOCCCCCI tI tI tI tI to po po po po prrrrrofitofitofitofitofit r lossssss r los r los ooooor los r los 19.15 LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of t of t of t of t of ofit andndndndnd ofit a ofit a ppppprrrrrofit a ofit a losloslosloslossssss Revenue from Operations (38.42) Revenue from Operations Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts Amount reclassified to profit & loss Tax effect 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 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 12.34 (19.15) 19.15 (342.72) (991.80) 38.42 (38.42) 346.57 (v(v(v(v(viiiiiiiiii)))))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. Pearl Global Industries Limited Annual Report 2020-21 139 Notes to consolidated financial statements for the year ended March 31, 2021 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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 Foreign currency receivable Foreign currency payable FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy iiiiin ln ln ln ln laaaaakkkkkhhhhh HKD 6.17 IDR 31,013.67 - EUR 0.01 GBP SGD 0.00 VND 7,137.67 CNY 0.29 219.21 USD 159.43 HKD 27,825.03 IDR VND 203,645.44 0.03 EUR - USD (((((````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) - 58.37 HKD FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy iiiiin ln ln ln ln laaaaakkkkkhhhhh 5.63 156.56 IDR 56,295.50 0.00 EUR 0.16 0.77 GBP 0.01 SGD 0.00 22.79 VND 50,120.31 0.15 3.28 CNY 77.12 16,111.82 USD 173.68 1,507.30 HKD 140.46 IDR 39,137.49 650.10 VND 170,637.90 - 27.31 2.27 EUR USD - (((((````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) 54.75 259.93 0.04 15.31 0.01 161.30 1.54 5,813.75 1,688.69 180.71 549.14 - 2,058.88 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 VAAAAALLLLLUUUUUEEEEES MS MS MS MS MEEEEEAAAAASSSSSUUUUURRRRREEEEEMMMMMEEEEENNNNNTSTSTSTSTS E 42 : FA E 42 : FA NONONONONOTTTTTE 42 : FA E 42 : FA IIIII FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss a)a)a)a)a) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts bs bs bs bs by cy cy cy cy caaaaattttteeeeegggggooooorrrrryyyyy Except Investment in equity instruments (Quoted) and investment in mutual funds which are measured at fair value through profit or loss, all other financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents, other bank balances, interest receivable, other receivables, trade payables, employee related liabilities and borrowings, are measured at amortised cost. Derivative financial instruments and certain investments are measured at fair value through other comprehensive income. bbbbb))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue hue hue hue hue hieieieieierrrrraaaaarrrrrchchchchchyyyyy This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table. The following table shows the carrying amounts and fair values of financial assets and financials liabilities, including their levels of in the fair value hierarchy: 140 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues LLLLLeeeeevvvvvel 1el 1el 1el 1el 1 LLLLLeeeeevvvvvel 2el 2el 2el 2el 2 LLLLLeeeeevvvvvel 3el 3el 3el 3el 3 TTTTTotototototaaaaalllll 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 Investment in equity shares (Quoted) Investment in mutual funds Investment in Units and Debt instrument Investments in key man insurance policy FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets not mea s not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s not mea s not mea s not mea Investment in equity shares (Unquoted) Investment in preference shares Investment in government securities Loan to employees Loan to related parties Loan to Others Security Deposits Interest accrued but not due on term deposits Deposits with original maturity of more than 12 months Trade receivables Cash and cash equivalents Other bank balances Other Financial assets 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 Financial Liabilites at Fair Value through OCI - Cash Flow Hedge FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities not mea ies not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue ies not mea ies not mea ies not mea Borrowings Lease Liabilities Security Deposits Book overdraft Interest accrued but not due on borrowings Unpaid dividends Trade payables Creditors for capital goods Others FFFFFV OV OV OV OV OCCCCCIIIII FFFFFVVVVV TTTTTPPPPPLLLLL FFFFFiiiiinnnnnaaaaancianciancianciancialllll A sA sA sA sA ssetsetsetsetsets -s -s -s -s - aaaaam om om om om orrrrrtttttiseiseiseiseiseddddd cccccosososososttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll LLLLLiabiabiabiabiabilililililititititities - ies - ies - ies - ies - aaaaam om om om om orrrrrtttttiseiseiseiseiseddddd cccccosososososttttt - - 2,042.92 2,085.98 335.00 754.38 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 270.00 1.63 31.04 300.00 3,542.13 974.99 36.15 265.69 24,217.21 9,471.34 2,233.21 32.35 - - - - - - - - - - - - - - - - - TTTTTotototototaaaaalllll cccccaaaaarrrrrrrrrryiyiyiyiyinnnnnggggg aaaaamoumoumoumoumounnnnnttttt 335.00 754.38 2,042.92 2,085.98 - 270.00 1.63 31.04 300.00 3,542.13 974.99 36.15 265.69 24,217.21 9,471.34 2,233.21 32.35 335.00 754.38 2,042.92 2,085.98 - - - - - - - - - - - - - 1,089.38 1,089.38 4,128.90 4,128.90 1,089.38 4,128.90 1,089.38 1,089.38 4,128.90 4,128.90 41,375.74 41,375.74 41,375.74 41,375.74 41,375.74 - - - - - 46,594.02 46,594.02 46,594.02 46,594.02 46,594.02 5,218.28 5,218.28 5,218.28 5,218.28 5,218.28 - 12.34 12.34 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 335.00 754.38 2,042.92 2,085.98 - - - - - - - - - - - - - - - - - 5,218.28 5,218.28 5,218.28 5,218.28 5,218.28 - 12.34 12.34 - - - - - - - - - 12.34 12.34 12.34 12.34 12.34 - - - - - - - - - - - - - - - - - - - - - - - - - 36,582.96 7,394.94 137.28 261.51 23.26 29.75 24,676.84 203.74 796.14 36,582.96 7,394.94 137.28 261.51 23.26 29.75 24,676.84 203.74 796.14 - - - - - - - - - - 36,603.29 36,603.29 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 70,106.42 70,106.42 70,106.42 70,106.42 70,106.42 70,118.77 70,118.77 70,118.77 70,118.77 70,118.77 12.34 12.34 12.34 12.34 12.34 36,615.63 36,615.63 36,603.29 - - - - - 36,603.29 36,603.29 36,615.63 36,603.29 36,615.63 36,615.63 36,603.29 Pearl Global Industries Limited Annual Report 2020-21 141 Notes to consolidated financial statements for the year ended March 31, 2021 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 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt FFFFFaaaaaiiiiir vr vr vr vr vaaaaallllluesuesuesuesues FFFFFV OV OV OV OV OCCCCCIIIII FFFFFVVVVV TTTTTPPPPPLLLLL FFFFFiiiiinnnnnaaaaancianciancianciancialllll A sA sA sA sA ssetsetsetsetsets -s -s -s -s - aaaaam om om om om orrrrrtttttiseiseiseiseiseddddd cccccosososososttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll LLLLLiabiabiabiabiabilililililititititities - ies - ies - ies - ies - aaaaam om om om om orrrrrtttttiseiseiseiseiseddddd cccccosososososttttt TTTTTotototototaaaaalllll cccccaaaaarrrrrrrrrryiyiyiyiyinnnnnggggg aaaaamoumoumoumoumounnnnnttttt LLLLLeeeeevvvvvel 1el 1el 1el 1el 1 LLLLLeeeeevvvvvel 2el 2el 2el 2el 2 LLLLLeeeeevvvvvel 3el 3el 3el 3el 3 TTTTTotototototaaaaalllll 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 Investment in equity shares (Quoted) Investment in mutual funds Investment in Units and Debt instrument Investments in key man insurance policy s not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets not mea s not mea s not mea s not mea Investment in equity shares (Unquoted) Investment in preference shares Investment in government securities Loan to employees Loan to related parties Loan to Others Security Deposits Interest accrued but not due on term deposits Interest accrued but not due on loan to related parties Deposits with original maturity of more than 12 months Trade receivables Cash and cash equivalents Other bank balances Other Financial assets - - 948.97 1,992.77 141.00 692.68 - - - - - - - - - - - - - - - - - - - - - - 1.63 33.40 300.00 3,843.08 1,147.70 56.42 8.45 265.11 22,042.47 8,808.89 2,168.83 1.16 - - - - - - - - - - - - - - - - - - 141.00 692.68 948.97 1,992.77 141.00 692.68 948.97 1,992.77 - - 1.63 33.40 300.00 3,843.08 1,147.70 56.42 8.45 265.11 22,042.47 8,808.89 2,168.83 1.16 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,941.73 2,941.73 2,941.73 2,941.73 2,941.73 833.68 833.68 833.68 833.68 833.68 38,677.14 38,677.14 38,677.14 38,677.14 38,677.14 - - - - - 42,452.56 42,452.56 42,452.56 42,452.56 42,452.56 3,775.42 3,775.42 3,775.42 3,775.42 3,775.42 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 141.00 692.68 948.97 1,992.77 - - - - - - - - - - - - - - - - - - - 3,775.42 3,775.42 3,775.42 3,775.42 3,775.42 - 991.80 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 Financial Liabilites at Fair Value through OCI - Cash Flow Hedge FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities not mea ies not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue ies not mea ies not mea ies not mea Borrowings Lease Liabilities Security Deposits Book overdraft Interest accrued but not due on borrowings Unpaid dividends Trade payables Creditors for capital goods Others 991.80 - - - - - - - - - 991.80 991.80 991.80 991.80 991.80 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 991.80 991.80 38,468.21 7,797.67 246.97 26.87 37.48 31.85 18,106.67 30.21 1,830.22 38,468.21 7,797.67 246.97 26.87 37.48 31.85 18,106.67 30.21 1,830.22 - - - - - - - - - - 38,488.54 38,488.54 - - - - - - - - - - - - - - - - - - - - - - - - 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 67,567.95 991.80 991.80 991.80 991.80 991.80 39,480.34 39,480.34 38,488.54 - - - - - 38,488.54 38,488.54 39,480.34 38,488.54 39,480.34 39,480.34 38,488.54 ccccc))))) Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).There have been no transfers in either direction for the year ended 31 March 2021 and 31 March 2020. 142 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt ies mea ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets as as as as and lnd lnd lnd lnd liabiabiabiabiabilililililititititities mea ies mea ue of fi ddddd))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi ue of fi ies mea ue of fi The carrying amounts of short-term trade and other receivables, trade payables, cash and cash equivalents and other bank balances are considered to be the same as their fair values, due to their short-term nature. For other financial liabilities/ assets that are measured at fair value, the carrying amounts are equal to the fair values. e)e)e)e)e) For specific valuation techniques used to value financial instruments, refer disclosures made in the standalone financials of Holding Company and Subsidiary companies. E 43 : 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 43 : FI NONONONONOTTTTTE 43 : FI E 43 : FI E 43 : FI 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 has exposure to the following risks arising from financial instruments: - - credit risk, liquidity risk and - market risk. The senior level management of respective companies in the Group oversees the management of these risks and is supported by treasury department that advises on the appropriate financial risk governance framework. AAAAA..... CCCCCrrrrreeeeedddddit rit rit rit rit riskiskiskiskisk Credit risk is the risk that counterparty will default on its contractual obligations resulting in finance loss to the Group. Credit risk arise from Cash and cash equivalents, deposit with banks, trade receivables and other financial assets measure at amortised cost. The respective companies in 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 iiiii))))) TTTTTrrrrrade r ade r ade r The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The credit risk is managed by the Group based on credit approvals, establishing credit limits and continuosly monitoring the credit worthiness of the customers, to whom the Group grants credit period in the normal course of business inlcuding taking credit insurance against export receivables. The Group uses expected credit loss model to assess the impairement loss in trade receivables and makes an allowance of doubtful trade receivables using this model. The ageing analysis of trade receivables as of the reporting date is as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Trade receivables as of March 31, 2021 Trade receivables as of March 31, 2020 NNNNNeiteiteiteiteitheheheheher pr pr pr pr paaaaasssssttttt dddddue no ue norrrrr ue no ue no ue no iiiiimmmmmpppppaaaaaiiiiirrrrreeeeeddddd 18,699.81 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 90 t90 t90 t90 t90 to 180 o 180 o 180 o 180 180 daaaaaysysysysys 180 d 180 d dddddaaaaaysysysysys 180 d 180 d TTTTTotototototaaaaalllll 2,873.23 1,028.63 131.07 1,484.46 24,217.21 17,559.04 2,680.10 1,567.65 201.07 34.61 22,042.47 l Assetsetsetsetsetsssss: The Group maintains exposure in cash & cash equivalents, term deposits with banks, l As (((((iiiiiiiiii))))) OOOOOtttttheheheheher Fr Fr Fr Fr Fiiiiinnnnnaaaaancianciancianciancial As l As l As investments, advances and security deposits etc. Credit risk from balances with banks, investment in mutual funds and Pearl Global Industries Limited Annual Report 2020-21 143 Notes to consolidated financial statements for the year ended March 31, 2021 loan to related parties is managed by the Group’s treasury department in accordance with the Group’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 respective Company’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of their finance committee. The Company’s maximum exposure to the credit risk as at March 31, 2021 and March 31, 2020 is majorly the carrying value of each class of financial assets. iiiiiiiiiiiiiii))))) Risk Exposure of Holding Company in respect of guarantees given 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 GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeee Giv e Giveeeeen tn tn tn tn tooooo e 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 HSBC Bank, Hongkong Branch Pearl Global (HK) Limited Securing Credit Facilities Standard Chartered Bank, Bangladesh Branch Norp Knit Industries Limited Securing Credit Facilities AAAAAmoumoumoumoumounnnnnt at at at at as as as as as attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 USD 30.00 lakh equivalent to ` 2,205.00 lakh GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee VVVVVaaaaalllllid Uid Uid Uid Uid Uptptptptptooooo February 04, 2023 USD 200.00 lakh November 10, 2021 equivalent to ` 14,700.00 lakh BDT 9,000.00 lakh equivalent to ` 7,636.03 lakh October 11, 2021 - 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. B.B.B.B.B. 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 vary at Company level (forming part of Group) and takes into account, future cash flows and the liquidity in which the entity operates. TTTTThe the the the the tababababable ble ble ble ble beloeloeloeloelow sw sw sw sw suuuuummmmmmmmmmaaaaarrrrrises t ises the mhe mhe mhe mhe maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of t ises t ises t ies baaaaasesesesesed od od od od on cn cn cn cn cooooonnnnntttttrrrrractactactactactuuuuuaaaaal ul ul ul ul undndndndndiscisciscisciscououououounnnnnttttteeeeeddddd ies b he finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities b ies b he fi he fi ofile of t ofile of t ofile of the fi ises t ies b he fi ofile of t pppppaaaaayyyyymememememennnnntttttsssss..... As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 Borrowings Lease Liabilities Current Maturities of long term borrowings Trade payables Other financial liabilities T T T T Totototototaaaaalllll LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 20,010.97 315.11 1,032.50 24,676.84 1,326.75 47,362.15 47,362.15 47,362.15 47,362.15 47,362.15 3 t3 t3 t3 t3 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss - 548.47 3,097.49 - - 3,645.95 3,645.95 3,645.95 3,645.95 3,645.95 1 t1 t1 t1 t1 to 5o 5o 5o 5o 5 yeayeayeayeayearsrsrsrsrs 12,000.49 3,128.20 - - 137.28 15,265.97 15,265.97 15,265.97 15,265.97 15,265.97 > 5 yearsrsrsrsrs > 5 yea > 5 yea > 5 yea > 5 yea TTTTTotototototaaaaalllll 461.84 3,403.17 - - - 3,865.01 3,865.01 3,865.01 3,865.01 3,865.01 32,473.30 7,394.94 4,129.99 24,676.84 1,464.03 70,139.10 70,139.10 70,139.10 70,139.10 70,139.10 144 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 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 Borrowings Lease Liabilities Current Maturities of long term borrowings Trade payables Other financial liabilities T T T T Totototototaaaaalllll LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 25,735.65 188.20 692.30 18,106.67 1,956.63 46,679.45 46,679.45 46,679.45 46,679.45 46,679.45 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 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 > 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 35,719.33 7,797.66 2,769.20 18,106.67 3,195.40 67,588.26 67,588.26 67,588.26 67,588.26 67,588.26 C.C.C.C.C. 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, 2021 and March 31, 2020. 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: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se) r der de se/( r der decccccrrrrreaeaeaeaeasesesesese DDDDDeeeeecccccrrrrreaeaeaeaease/( se/( IIIIIncncncncncrrrrreaeaeaeaease ose ose ose ose or de se/( i i i i in pn pn pn pn prrrrrofitofitofitofitofit iiiiin bn bn bn bn baaaaasis psis psis psis psis poooooiiiiinnnnntttttsssss 7.34 +50 (7.34) -50 +50 5.64 (5.64) -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. 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. Pearl Global Industries Limited Annual Report 2020-21 145 Notes to consolidated financial statements for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se) se/( CCCCChhhhhaaaaannnnnggggges ies ies ies ies innnnn DDDDDeeeeecccccrrrrreaeaeaeaease/( se/( se/( ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx ofit b i i i i in pn pn pn pn prrrrrofit b ofit b ofit b (702.67) 702.67 (91.57) 91.57 exexexexexchchchchchaaaaannnnnggggge re re re re raaaaattttteeeee +5% -5% +5% -5% E 44 : SEGMMMMMEEEEENNNNNT IT IT IT IT INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN E 44 : SEG E 44 : SEG NONONONONOTTTTTE 44 : SEG E 44 : 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, 2021 and March 31, 2020 is as follows: BBBBBaaaaannnnngggggllllladesh adesh adesh adesh adesh 7,537.81 HHHHHooooonnnnng Kg Kg Kg Kg Kooooonnnnnggggg 61,526.19 IIIIIndndndndndiaiaiaiaia 67,595.75 OOOOOttttthehehehehersrsrsrsrs UUUUUnnnnn-----aaaaallllllololololocccccababababablelelelele - 12,432.90 TTTTTotototototaaaaalllll 149,092.65 EEEEEllllliiiiimmmmmiiiiinnnnnaaaaatttttioioioioionnnnn - TTTTTotototototaaaaalllll 149,092.65 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Segment Sales Inter Segment Sales (9,094.54) (71,554.08) (70,365.19) (17,498.77) 48,996.23 16,732.86 9,570.62 (45,567.81) (20,266.87) (12,168.14) - - TTTTTotototototaaaaal Sl Sl Sl Sl Seeeeegggggmememememennnnnt St St St St Saaaaaleslesleslesles 56,534.04 56,534.04 56,534.04 56,534.04 56,534.04 78,259.04 78,259.04 78,259.04 78,259.04 78,259.04 77,166.37 77,166.37 77,166.37 77,166.37 77,166.37 12,432.90 12,432.90 12,432.90 12,432.90 12,432.90 Other Income (54,662.36) (54,662.36) (54,662.36) (54,662.36) (54,662.36) (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) (2.88) 568.49 2,409.16 (764.38) (1,177.23) (3,353.73) - - TTTTTotototototaaaaal Sl Sl Sl Sl Seeeeegggggmememememennnnnt Rt Rt Rt Rt Reeeeevvvvveeeeennnnnueueueueue 56,531.17 56,531.17 56,531.17 56,531.17 56,531.17 78,827.53 78,827.53 78,827.53 78,827.53 78,827.53 79,575.53 79,575.53 79,575.53 79,575.53 79,575.53 12,432.90 12,432.90 12,432.90 12,432.90 12,432.90 (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) 24.86 34.67 35.00 5.47 Total Revenue of each segment as a percentage of total revenue of all segment Total Segment Operative Profit Depreciation (22.01) 3,133.27 (36.93) 2,633.31 (34.11) 3,294.86 (3,369.98) (1,937.98) (5,308.26) 1,595.80 (1,506.88) 664.45 (590.53) 1,968.87 1,813.42 (1,761.66) 1,481.44 (6.95) 610.01 (913.63) 336.88 (345.33) 273.13 (568.31) 5.20 Total Segment Result before Interest & Taxes 1,537.47 Total EBIT of each segment as a percentage of total EBIT of all segment (1,863.10) (1,347.44) (3,546.59) 29.22 37.42 28.16 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 (25.43) (18.39) (48.41) (7.77) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (168,512.58) - (168,512.58) 75,299.70 75,299.70 (78,002.82) (78,002.82) - - 224,392.36 224,392.36 224,392.36 224,392.36 224,392.36 75,299.70 75,299.70 75,299.70 75,299.70 75,299.70 149,092.65 149,092.65 149,092.65 149,092.65 149,092.65 (246,515.40) (246,515.40) (246,515.40) (246,515.40) (246,515.40) 2,974.77 (168,512.58) (168,512.58) (78,002.82) (78,002.82) (168,512.58) (78,002.82) (168,512.58) (168,512.58) (78,002.82) (78,002.82) 2,350.49 624.29 (5,295.34) (389.85) (4,905.48) 227,367.13 227,367.13 227,367.13 227,367.13 227,367.13 75,923.99 75,923.99 75,923.99 75,923.99 75,923.99 151,443.14 151,443.14 151,443.14 151,443.14 151,443.14 (251,810.74) (251,810.74) (251,810.74) (251,810.74) (251,810.74) 100.00 (173,418.07) (173,418.07) (78,392.67) (78,392.67) (173,418.07) (78,392.67) (173,418.07) (173,418.07) (78,392.67) (78,392.67) - - (100.00) 9,671.45 (11,529.86) 4,410.55 (4,204.40) 5,260.91 (7,325.45) 100.00 (100.00) - - - - - - - - - - - - - - - - - - - - - - 9,671.45 (11,529.86) 4,410.55 (4,204.40) 5,260.91 (7,325.45) - - 4,125.34 (4,201.04) (612.76) (950.58) 1,748.32 1,748.32 1,748.32 1,748.32 1,748.32 (2,172.83) (2,172.83) (2,172.83) (2,172.83) (2,172.83) 146 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs t Assetsetsetsetsetsssss t As SSSSSeeeeegggggmememememennnnnt As t As t As Segment Assets as a percentage of Total assets of all segments 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 BBBBBaaaaannnnngggggllllladesh adesh adesh adesh adesh HHHHHooooonnnnng Kg Kg Kg Kg Kooooonnnnnggggg IIIIIndndndndndiaiaiaiaia OOOOOttttthehehehehersrsrsrsrs UUUUUnnnnn-----aaaaallllllololololocccccababababablelelelele TTTTTotototototaaaaalllll EEEEEllllliiiiimmmmmiiiiinnnnnaaaaatttttioioioioionnnnn TTTTTotototototaaaaalllll 23,188.35 33,247.97 61,996.35 4,524.40 6,441.48 129,398.56 (22,027.81) (35,508.37) (55,691.95) (5,504.42) (6,498.15) (125,230.70) 17.92 25.69 47.91 3.50 4.98 100.00 (17.59) 15,888.81 (28.35) 6,306.54 (44.47) 16,857.27 (4.40) 654.24 (5.19) (100.00) 36,676.40 76,383.26 (12,479.10) (3,973.85) (17,536.66) (1,449.43) (38,437.83) (73,876.87) 20.80 8.26 22.07 0.86 48.02 100.00 (16.89) 7,299.54 (5.38) (23.74) (1.96) (52.03) (100.00) 26,941.43 45,139.08 3,870.16 (30,234.92) 53,015.29 (9,548.71) (31,534.52) (38,155.29) (4,054.99) 31,939.68 (51,353.83) 13.77 50.82 85.14 7.30 (57.03) 100.00 (18.59) 946.25 (61.41) 1,544.45 (74.30) 691.89 (7.90) 10.42 (1,896.23) (1,970.88) (1,564.37) (248.53) 29.64 48.37 21.67 0.33 (33.38) (34.70) (27.54) (4.38) 62.20 - - - - (100.00) 3,193.01 (5,680.01) 100.00 (100.00) - - - - - - - - - - - - - - - - 129,398.56 (125,230.70) - - 76,383.26 (73,876.87) - - 53,015.29 (51,353.83) - - 3,193.01 (5,680.01) - - bbbbb))))) The Group revenue from sale of garments to external customer are as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Local Customers Foreign Customers TTTTTotototototaaaaalllll ccccc))))) Non- current assets are located within India and outside India: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs NNNNNooooon Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeennnnnt As t Assetsetsetsetsetsssss t As t As t As within India - outside India - (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 439.41 145,422.28 --------------------------------------------------------- 145,861.69 145,861.69 145,861.69 145,861.69 145,861.69 --------------------------------------------------------- 8,403.09 154,922.70 --------------------------------------------------------- 163,325.79 163,325.79 163,325.79 163,325.79 163,325.79 --------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 23,670.78 29,646.63 24,818.27 29,495.63 ddddd))))) Revenue from major customer: During the year the Group generates 90% of its external revenues from 14 customers (March 31, 2020: 13 customers). Pearl Global Industries Limited Annual Report 2020-21 147 Notes to consolidated financial statements for the year ended March 31, 2021 E 45 : CONNNNNTTTTTIIIIINNNNNGGGGGEEEEENNNNNT LT LT LT LT LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND CD CD CD CD COOOOOMMMMMMMMMMIIIIITTTTTMMMMMEEEEENNNNNTSTSTSTSTS E 45 : CO NONONONONOTTTTTE 45 : CO E 45 : CO E 45 : CO a)a)a)a)a) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies I (i) The respective companies forming part of the group has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The respective companies does not expect the outcome of these proceedings to have a materially adverse effect on its financial position. In respect of Holding Company: - Tax Demand as per Sec 143(1) of Income Tax Act , 1961 (with respect to A.Y. 2015-16) Tax Demand as per Sec 143(3) of Income Tax Act , 1961 (with respect to A.Y. 2016-17) Tax Demand as per Sec 143(3) of Income Tax Act , 1961 (with respect to A.Y. 2017-18) - - - Demand as per TDS (TRACES) portal - CPC (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 8.34 38.83 16.61 8.71 8.30 38.83 16.61 16.52 (ii) Several Legal Cases of labour pending at labour Court, Civil Court and High Court. The Group has assessed 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 separate disclosure is made in books of accounts. 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 13,678.44 204.93 1.00 0.50 5,862.96 224.29 1.00 0.50 V The Group has given the corporate guarantees to banks on behalf of its foreign subsidiaries (refer note no. 43) 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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 - 198.72 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. 148 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 E 46 : RELLLLLAAAAATTTTTEEEEED PD PD PD PD PAAAAARRRRRTTTTTY TY TY TY TY TRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOONSNSNSNSNS E 46 : RE NONONONONOTTTTTE 46 : RE E 46 : RE E 46 : RE t of relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies t of r AAAAA..... LLLLLisisisisist of r t of r t of r e of Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp e of R NNNNNaaaaatttttuuuuurrrrre of R e of R e of R NNNNNaaaaame of t me of the Rhe Rhe Rhe Rhe Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy me of t me of t me of t ic (Dirrrrreeeeect)ct)ct)ct)ct) ic (Di DDDDDooooomesmesmesmesmestttttic (Di ic (Di ic (Di Pearl Apparel Fashions Limited (Formerly known as Lerros Fashions India Limited) Pearl Global Kaushal Vikas Limited SBUYS E-Commerce Limited (w.e.f. 20.09.2019) s (Dirrrrreeeeect)ct)ct)ct)ct) s (Di s (Di rsea rsea OOOOOvvvvveeeeersea rseas (Di s (Di rsea Pearl Global Fareast Limited Pearl Global (HK) Limited Norp Knit Industries Limited rseas (Is (Is (Is (Is (Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct) rsea rsea ct/Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct) OOOOOvvvvveeeeersea ubsidiaiaiaiaiarrrrry (Di ubsid ubsid ct/I ct/I SSSSSubsid y (Dirrrrreeeeect/I y (Di y (Di rsea ubsid ct/I y (Di 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 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 Peeeeersorsorsorsorsonnnnnnel ex nel exeeeeerrrrrcisecisecisecisecise Little People Education Society nel ex nel ex nel ex SigSigSigSigSignnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee Nim International Commerce LLP PDS Multinational Fashions Limited Pearl Wears PS Arts Private Limited PSS Estates LLP Vau Apparels LLP OOOOOvvvvveeeeersea rseasssss rsea rsearsea 360 Notch Ltd (Formely known as Poeticgem Australia Ltd) 6Degree Manufacturing Limited (Formerly Zamira Denim Lab Limited) Apex Black Limited (Formerly Fabric & Trims Limited) Blueprint Design 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) Pearl Global Industries Limited Annual Report 2020-21 149 Notes to consolidated financial statements for the year ended March 31, 2021 Digital Ecom Techno Private Limited Digital Internet Technologies Limited Elevated Chance Limited Fareast Vogue Limited Frou Holdings Limited FX Import Company Limited Green Apparel Industries Ltd Grupo Sourcing Limited (Hongkong) Jcraft Array Limited (w.e.f. 12.04.2018) JJ Star Industrial Limited JSM Trading (FZE.) Kindred Brands Ltd (Formerly NW Far-east Limited) Kleider Sourcing FZCO (w.e.f 17.01.2019) Kleider Sourcing Hongkong Limited Krayon Sourcing Limited (Formerly Souring Solutions HK Limited) Lai Chi Kok Apparels Limited Multinational Textile Group Limited NAFS Limited Nor Lanka Manufacturing Colombo Limited Nor Lanka Manufacturing Limited Norwest Industries Limited Pallas Holdings Limited PDS Far-east Limited PDS Asia Star Corporation Limited PDS Global Investments Limited PDS Ventures Limited (w.e.f. 03.07.2018) PDS Smart Fabric Tech Limited (Formerly Funky Brands Company Limited) PDS Sourcing Limited (Erstwhile Global Textiles Group Limited) PDS Tailoring Limited (Formerly Nor India Manufacturing Company Limited) PDS H2GO Glove Manufacturing Limited PDS Multinational FZCO PDS Manufacturing Limited PDS Smart Fabric Tech (UK) Limited PG Group Limited PG Home Group Limited PG Home Group SPA (Formerly Pearl GES Home Group SPA) Poetic Knitwear Limited Poeticgem International Limited Poeticgem International FZCO Progress Manufacturing Group Ltd Pro Trusted Med Tech Limited (Formerly FX Import Hong Kong Limited) Premier Pearl Garment Joint Stock Co. Limited Razamtazz Limited 150 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 Redwood Internet Ventures Limited Rising Asia Star Hongkong Limited (Formerly Techno Manufacturing Limited) Simple Approach (Canada) Limited Smart Notch Industrial Limited Sourcing Solutions Limited Spring Near East Manufacturing Company Limited Styleberry Limited Superb Mind Holdings Limited S&D Industries Limited Stertex B.V. Techno Design HK Limited (Formerly DPOD Manufacturing Limited) Technocian Fashion Private Limited (w.e.f. 20.03.2019) Transnational Textile Group Limited Twins Asia FZCO (w.e.f. 17.01.2019) Twin Asia Limited Zamira Fashion Limited KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Mr. Deepak Seth P) & theiheiheiheiheir rr rr rr rr relelelelelaaaaatttttiviviviviveeeee P) & t P) & t (K(K(K(K(KMMMMMP) & t P) & t Chairman Vice Chairman & Managing Director Mr. Pulkit Seth Mrs. Shifalli Seth Whole-Time Director Mr. Uma Shankar Kaushik (w.e.f 28.07.2020) Whole-Time Director Whole-Time Director Mr. Shailesh Kumar (w.e.f 07.10.2020) 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 (Till 15.02.2021) Company Secretary Mr. Mayank Jain (w.e.f 21.06.2021) Independent Director Mr. Chittranjan Dua Independent Director Mr. Rajendra Kumar Aneja Independent Director Mr. Anil Nayar Independent Director Mrs. Madhulika Bhupatkar (w.e.f 18.03.2020) Independent Director Mr. Abhishek Goyal Pearl Global Industries Limited Annual Report 2020-21 151 Notes to consolidated financial statements for the year ended March 31, 2021 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 (((((iiiii))))) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov s Sig ise ov (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Expenses paid by them on behalf of the Company Interest income losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi CCCCClosi losi losi Loan receivable (including interest) (((((iiiiiiiiii))))) 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 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2.25 30.05 3.00 30.00 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 300.00 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 306.71 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 173.81 0.52 39.58 3.50 301.51 1.06 30.09 1.60 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 - 0.92 sactioioioioionnnnnsssss: : : : : Related Parties having more than 10% interest in each transaction in the ordinary sact sact Disclosuuuuurrrrre of Me of Me of Me of Me of Maaaaattttteeeeerrrrriaiaiaiaial Tl Tl Tl Tl Trrrrraaaaannnnnsact Disclos Disclos C.C.C.C.C. Disclos sact Disclos course of business (((((iiiii))))) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov 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 ise ov s sig ise ov (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ExExExExExpppppeeeeennnnnses p he Commmmmpppppaaaaannnnnyyyyy he Co he Co f of t ses paaaaaid oid oid oid oid on bn bn bn bn behehehehehaaaaalllllf of t f of t ses p ses p f of the Co he Co f of t ses p PDS Multinational Fashions Limited IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe PDS Multinational Fashions Limited losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee CCCCClosi losi losi losi LLLLLoooooaaaaan rn rn rn rn reeeeeccccceiveiveiveiveivababababable ( le (le (iiiiinclnclnclnclncludududududiiiiinnnnng ig ig ig ig innnnnttttteeeeerrrrresesesesest)t)t)t)t) le (le ( PDS Multinational Fashions Limited he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2.25 30.05 3.00 30.00 300.00 306.71 152 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion pn pn pn pn paaaaaididididid Mr.Pulkit Seth Mrs. Shifalli Seth Mr. Uma Shankar Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg Mr. Kashmir Rathour Mr. Kumar Shailesh EEEEEPPPPPF pF pF pF pF paaaaaididididid Mr.Pulkit Seth Mrs. Shifalli Seth Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg Mr. Kashmir Rathour ses incuncuncuncuncurrrrrrrrrreeeeed od od od od on bn bn bn bn behehehehehaaaaalllllf of t ses i ses i ExExExExExpppppeeeeennnnnses i he Commmmmpppppaaaaannnnnyyyyy he Co he Co f of t f of t f of the Co f of t ses i he Co Mr. Uma Shankar Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg Mr. Kumar Shailesh 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 Mrs Madhulika Bhupatkar Mr. Rajendra Aneja 83.40 34.75 14.95 - 9.26 - 20.34 11.12 0.11 0.11 - 0.14 - 0.16 4.71 13.88 6.04 13.36 1.58 0.50 0.60 0.60 0.60 0.60 0.60 165.00 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 sactioioioioionnnnns ws ws ws ws wititititith rh rh rh rh relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies sact s of trrrrraaaaannnnnsact sact s of t (iii) TTTTTeeeeerrrrrmmmmms as as as as and cnd cnd cnd cnd cooooondndndndnditititititioioioioionnnnns of t s of t sact s of t All the transaction with the related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year end are unsecured and interest free except the interest bearing loan and settlement occurs in cash. (iv) The remuneration of Key managerial Personnel does not include amount in respect 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 actuarial valuation. (v) Corporate Guarantee given by the Holding 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 Pearl Global (HK) Limited, Hong Kong for USD 30.00 lakh equivalent to ` 2,205.00 lakh (March 31, 2020 USD 120.00 lakh equivalent to ` 9,046.80 lakh) Pearl Global Industries Limited Annual Report 2020-21 153 Notes to consolidated financial statements for the year ended March 31, 2021 • • 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 ` 14,700.00 lakh (March 31, 2020: USD 200.00 lakh equivalent to ` 15,078.00 lakh) 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 ` 7,636.03 lakh (March 31, 2020 : BDT 9,000 lakh equivalent to ` 7,967.43 lakh). Above Corporate Guarantees have been given for business purpose. T 2013, BY WY WY WY WY WAAAAAY OY OY OY OY OFFFFF E 47: 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 T 2013, B E 47: DI NONONONONOTTTTTE 47: DI E 47: DI T 2013, B E 47: DI AAAAADDDDDDDDDDIIIIITTTTTIIIIIOOOOONNNNNAAAAAL IL IL IL IL INNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN (Amount in ` Lakh, unless otherwise stated) . 2020-21 . 2020-21 FFFFF.....YYYYY. 2020-21 . 2020-21 . 2020-21 losloss)s)s)s)s) loslos ofit/( ofit/( ShShShShShaaaaarrrrre ie ie ie ie in pn pn pn pn prrrrrofit/( ofit/(los ofit/( s i.e.e.e.e.e. s i. s i. et Assetsetsetsetsets i. et As et As NNNNNet As s i. et As tttttotototototaaaaal al al al al assssssetsetsetsetsets ms ms ms ms miiiiinnnnnuuuuusssss tttttotototototaaaaal ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies ShShShShShaaaaarrrrre ie ie ie ie in otn otn otn otn otheheheheherrrrr CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe ShShShShShaaaaarrrrre ie ie ie ie in tn tn tn tn totototototaaaaalllll CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe me of the Ehe Ehe Ehe Ehe Ennnnntttttitititititiesiesiesiesies me of t me of t NNNNNaaaaame of t me of t As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd net assssssetsetsetsetsetsssss net a net a net a net a AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt PPPPPaaaaarrrrreeeeennnnnttttt::::: Pearl Global Industries Limited ubsidiaiaiaiaiarrrrryyyyy::::: ubsid ubsid SSSSSubsid ubsid - Indian Pearl Global Kausal Vikas Limited Pearl Apparel Fashions Limited SBUYS E-Commerce Limited - Foreign Norp Knit Industries Limited Pearl Global Far East Limited Pearl Global (HK) Limited SSSSSubtubtubtubtubtotototototaaaaalllll Intercompany Elimination & Consolidation Adjustments TTTTTotototototaaaaalllll Non Controlling Interest in subsidiaries GrGrGrGrGraaaaand Tnd Tnd Tnd Tnd Totototototaaaaalllll 60.66 31,372.03 4.43 77.40 (813.05) 706.70 47.19 784.10 0.00 - 0.00 0.10 - 0.74 25.82 13.78 23.15 13,356.89 7,129.68 11,975.99 63,835.42 63,835.42 63,835.42 63,835.42 63,835.42 (23.42) (12,113.96) 51,721.46 51,721.46 51,721.46 51,721.46 51,721.46 1,293.82 53,015.28 53,015.28 53,015.28 53,015.28 53,015.28 (0.04) - (0.00) 13.27 6.70 75.70 (0.06) (0.65) - (0.01) 231.96 117.17 1,323.50 1,749.37 1,749.37 1,749.37 1,749.37 1,749.37 (1.05) 1,748.32 1,748.32 1,748.32 1,748.32 1,748.32 (21.21) 1,727.11 1,727.11 1,727.11 1,727.11 1,727.11 - - - 442.40 176.30 268.15 26.22 - - - (384.53) (153.22) (233.07) (64.12) (64.12) (64.12) (64.12) (64.12) (22.79) (86.91) (86.91) (86.91) (86.91) (86.91) 23.84 (63.07) (63.07) (63.07) (63.07) (63.07) (0.04) - (0.00) (9.18) (2.17) 65.63 (1.43) (0.65) - (0.01) (152.57) (36.05) 1,090.42 1,685.25 1,685.25 1,685.25 1,685.25 1,685.25 (23.84) 1,661.41 1,661.41 1,661.41 1,661.41 1,661.41 2.63 1,664.04 1,664.04 1,664.04 1,664.04 1,664.04 154 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 (Amount in ` Lakh, unless otherwise stated) FFFFF.....YYYYY. 2019-20 . 2019-20 . 2019-20 . 2019-20 . 2019-20 losloss)s)s)s)s) loslos ofit/( ShShShShShaaaaarrrrre ie ie ie ie in pn pn pn pn prrrrrofit/( ofit/( ofit/(los ofit/( s i.e.e.e.e.e. et Assetsetsetsetsets i. s i. s i. et As NNNNNet As et As s i. et As tttttotototototaaaaal al al al al assssssetsetsetsetsets ms ms ms ms miiiiinnnnnuuuuusssss tttttotototototaaaaal ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies ShShShShShaaaaarrrrre ie ie ie ie in otn otn otn otn otheheheheherrrrr CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe ShShShShShaaaaarrrrre ie ie ie ie in tn tn tn tn totototototaaaaalllll CoCoCoCoCommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooomememememe me of the Ehe Ehe Ehe Ehe Ennnnntttttitititititiesiesiesiesies me of t NNNNNaaaaame of t me of t me of t As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd net assssssetsetsetsetsetsssss net a net a net a net a AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt As a % of As a % of As a % of As a % of As a % of cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd PPPPPrrrrrofitofitofitofitofit AAAAAmoumoumoumoumounnnnnttttt PPPPPaaaaarrrrreeeeennnnnttttt::::: Pearl Global Industries Limited ubsidiaiaiaiaiarrrrryyyyy::::: ubsid ubsid SSSSSubsid ubsid - Indian Pearl Global Kausal Vikas Limited Pearl Apparel Fashions Limited SBUYS E-Commerce Limited - Foreign Norp Knit Industries Limited Pearl Global Far East Limited Pearl Global (HK) Limited SSSSSubtubtubtubtubtotototototaaaaalllll Intercompany Elimination & Consolidation Adjustments TTTTTotototototaaaaalllll Non Controlling Interest in subsidiaries GrGrGrGrGraaaaand Tnd Tnd Tnd Tnd Totototototaaaaalllll E 48 : LEAAAAASSSSSEEEEESSSSS E 48 : LE NONONONONOTTTTTE 48 : LE E 48 : LE E 48 : LE 61.11 30,587.92 23.05 500.89 (25.64) (557.30) (1.30) (56.43) 0.00 0.01 0.00 0.74 3.91 0.76 26.99 14.38 21.68 13,509.45 7,200.70 10,851.98 (0.03) (1.09) (0.01) 40.17 24.12 22.96 (0.57) (23.73) (0.24) 872.73 524.12 498.80 ----- 62,155.46 62,155.46 62,155.46 62,155.46 62,155.46 ----- 2,371.97 2,371.97 2,371.97 2,371.97 2,371.97 (24.17) (12,098.07) (9.16) (199.14) ----- - ----- 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 ----- - ----- 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 - - - 52.43 26.75 46.46 ----- - ----- - ----- - - - 1,139.84 581.44 1,009.92 2,173.90 2,173.90 2,173.90 2,173.90 2,173.90 (0.01) (0.55) (0.01) 46.30 25.43 34.71 (0.57) (23.73) (0.24) 2,012.57 1,105.56 1,508.72 ----- 4,545.88 4,545.88 4,545.88 4,545.88 4,545.88 - (4.58) (199.14) 2,173.90 2,173.90 2,173.90 2,173.90 2,173.90 (126.80) 2,047.10 2,047.10 2,047.10 2,047.10 2,047.10 ----- - ----- 4,346.74 4,346.74 4,346.74 4,346.74 4,346.74 (143.19) 4,203.55 4,203.55 4,203.55 4,203.55 4,203.55 The Group has adopted Ind AS 116 effective from annual reporting period beginning April 1, 2019 & 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). On transition, the group recognised a lease liability measured at 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. On application of Ind AS 116, the nature of expense 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. Lease contracts majorly pertains for buildings taken on lease to conduct its business in the ordinary course. Pearl Global Industries Limited Annual Report 2020-21 155 Notes to consolidated financial statements for the year ended March 31, 2021 ue of assssssetsetsetsetsetsssss ue of a : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of a ue of a : mov RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss: mov : mov ue of a : mov ck ack as as as as as at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 2019 ck ack a GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a il 01, 2019 il 01, 2019 Add: Additions during the year Add: Reclassification from PPE on account of adoption of Ind AS 116 Less: Disposal / adjustments during the year Add/(Less): Exchange Fluctuation/ Translation GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a ck ack as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ck ack a ch 31, 2020 ch 31, 2020 Add: Additions during the year Add: Adjustment on account of addition of prepaid component of security deposit Add / (Less): Reclassification from PPE on account of adoption of Ind AS 116 Less: Disposal / adjustments during the year Add/(Less): Exchange Fluctuation/ Translation ch 31, 2021 ch 31, 2021 ck As at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ck As a ck As a GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock As a ch 31, 2021 ch 31, 2021 ck As a AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed Dd Dd Dd Dd Deeeeeppppprrrrricia iciaiciatttttioioioioion :n :n :n :n : iciaicia 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: Reclassification from PPE on account of adoption of Ind AS 116 Add/(Less): Exchange Fluctuation/ Translation 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 Add: Depreciation charge for the year Add: Security Deposit Amortisation Add: Reclassification from PPE on account of adoption of Ind AS 116 Add/(Less): Exchange Fluctuation/ Translation ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ck :ck : ck :ck : NNNNNet Bet Bet Bet Bet Blololololock : ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2020-21, there were no impairment charges recorded for right-of-use assets. LLLLLeaeaeaeaeasessessessesses: mov : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of r : mov : mov ue of reeeeecccccooooogggggnnnnniseiseiseiseised ld ld ld ld liabiabiabiabiabilililililitititititiesiesiesiesies ue of r ue of r : mov ue of r As At April 01, 2020 Add: Additions during the year Add: Interest expense on lease liabilities Less: Reversal due to enclosure Less: Repayment of lease liabilities Add: Exchange Realisation/ Translation As AAs AAs AAs AAs At Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 B B B B Buuuuuildildildildildiiiiinnnnngggggsssss 8,275.88 8,275.88 8,275.88 8,275.88 8,275.88 352.96 2,903.98 (51.44) 678.14 12,159.53 12,159.53 12,159.53 12,159.53 12,159.53 560.59 327.58 (62.60) (6.58) (228.54) 12,749.98 12,749.98 12,749.98 12,749.98 12,749.98 - 1,303.46 69.68 60.39 1,433.53 1,433.53 1,433.53 1,433.53 1,433.53 1,528.65 33.15 (12.11) (35.60) 2,947.62 2,947.62 2,947.62 2,947.62 2,947.62 9,802.36 9,802.36 9,802.36 9,802.36 9,802.36 10,725.98 10,725.98 10,725.98 10,725.98 10,725.98 7,797.68 582.35 838.09 (8.27) (1,708.94) (105.97) 7,394.94 7,394.94 7,394.94 7,394.94 7,394.94 6,531.37 863.57 7,394.94 7,394.94 7,394.94 7,394.94 7,394.94 The maturity analysis of lease liabilities is given in note 43 in the ‘Liquidity risk’ section. Leases committed and not yet commenced: There are no leases commited which have not yet commenced as on reporting date. Cash flows from operating activities includes cash flow from short term lease & leases of low value. CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay 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. For details of items of PPE given on lease, refer to note no. 4 of Financial Statements. 156 Pearl Global Industries Limited Annual Report 2020-21 Notes to consolidated financial statements for the year ended March 31, 2021 E 49 : EVEEEEENNNNNT OT OT OT OT OCCCCCCCCCCOOOOOUUUUURRRRRRRRRRIIIIINNNNNG AG AG AG AG AFFFFFTTTTTEEEEER BR BR BR BR BAAAAALLLLLAAAAANNNNNCCCCCE SE SE SE SE SHHHHHEEEEEEEEEET DT DT DT DT DAAAAATTTTTEEEEE E 49 : EV NONONONONOTTTTTE 49 : EV E 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 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 he yea Final dividend for the financial year 2019-20: ` Nil per share (2018-19: ` 3.00 per share) Including dividend distribution tax of ` Nil for the financial year 2019-20 (` 133.68 lakh for the financial year 2018-19) (Amount in ` Lakh, unless otherwise stated) FFFFFooooor tr tr tr tr the Yhe Yhe Yhe Yhe Yeaeaeaeaear er er er er endendendendendeddddd ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 FFFFFooooor tr tr tr tr the Yhe Yhe Yhe Yhe Yeaeaeaeaear er er er er endendendendendeddddd ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 - 783.56 bbbbb))))) 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 : ESTTTTTIIIIIMMMMMAAAAATTTTTIIIIIOOOOON ON ON ON ON OF UF UF UF UF UNNNNNCCCCCEEEEERRRRRTTTTTAAAAAIIIIINNNNNTTTTTIIIIIEEEEES RS RS RS RS REEEEELLLLLAAAAATTTTTIIIIINNNNNG TG TG TG TG TO TO TO TO TO THHHHHE GE GE GE GE GLLLLLOOOOOBBBBBAAAAAL HL HL HL HL HEEEEEAAAAALLLLLTTTTTH PH PH PH PH PAAAAANNNNNDDDDDEEEEEMMMMMIIIIIC -C -C -C -C - E 50 : ES E 50 : ES NONONONONOTTTTTE 50 : ES E 50 : ES -19: -19: CCCCCOVOVOVOVOVIIIIIDDDDD-19: -19: -19: The Group has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, intangibles, investments and other assets. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Group has used internal and external sources of information. The Group has reviewed the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Group’s financial statements may differ from that estimated as at the date of approval of these financial statements and the Group will continue to closely monitor any material changes to future economic conditions. E 51 : E 51 : NONONONONOTTTTTE 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 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 : Figures have been rounded off to the nearest lakh upto two decimal places except otherwise stated. l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo rs of Peaeaeaeaearrrrrl Glo l Glo rs of P d of Dirrrrreeeeectctctctctooooors of P rs of P d of Di f of Boooooaaaaarrrrrd of Di d of Di f of B r & on bn bn bn bn behehehehehaaaaalllllf of B f of B r & o FFFFFooooor & o r & o l Glo rs of P d of Di f of B r & o (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Place of Signature: Gurugram Date: June 21, 2021 Pearl Global Industries Limited Annual Report 2020-21 157 Independent Auditor’s Report To The Members of Pearl Global Industries Limited it of the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss it of t RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ahe Ahe Ahe Ahe Audududududit of t it of t it of t OpOpOpOpOpiiiiinnnnnioioioioionnnnn We have audited the accompanying standalone financial statements of PPPPPeaeaeaeaearrrrrl Glo l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd (“the Company”), l Glo l Glo l Glo which comprise the balance sheet as at March 31, 2021, 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, 2021, the Profit (financial performance including other comprehensive income), changes in equity and its cash flows for the year ended on that date. BBBBBaaaaasis fo sis fo sis fo r Op r Op r Opiiiiinnnnnioioioioionnnnn sis for Op sis fo r Op We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements. EEEEEmmmmmppppphhhhhaaaaasis of M sis of M sis of M sis of Maaaaatttttttttteeeeerrrrr sis of M We draw attention to Note 27 of the financial statements which states that export incentives under the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme applicable with effect from January 1, 2021 amounting to ` 421.16 Lakh has been recognized on the basis of certain assumptions including previous applicable rates, as the rates are yet to be notified under the said scheme. Our opinion is not modified in respect of 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 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: KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid t of innnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in sn sn sn sn subsid ubsid t of i t of immmmmpppppaaaaaiiiiirrrrrmememememennnnnt of i t of i t of i AsAsAsAsAssessessessessessssssmememememennnnnt of i t of i ubsid t of i t of i As disclosed in note 8 of standalone financial statements, the Company has investments in subsidiaries of ` 11,578 Lakh (March 31, 2020: ` 11,728.05 Lakh). The said investments are carried at cost less allowance for impairment. The Company analyses regularly for indicators of impairment of the said investments by reference to the requirements under relevant Ind AS. it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: • Obtained an understanding of Management’s process for identification of impairment indicators. Assessed design, implementation and operating effectiveness of key controls in respect of impairment allowance process. 158 Pearl Global Industries Limited Annual Report 2020-21 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs We identified the annual impairment assessment as a key audit matter because carrying value of these investments is significant, assessment process is complex, judgmental by nature, significant changes in business environment specifically due to outbreak of COVID-19 and further, is based on assumptions on projected future cash inflows, expected growth rate, discount rate etc. AAAAAdededededeqqqqquuuuuacacacacacy ay ay ay ay and cnd cnd cnd cnd cooooommmmmpppppletletletletleteeeeenesnesnesnesness of d es of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy es of R isclosuuuuurrrrres of R es of R isclos isclos s of d s of d s of disclos es of R isclos s of d sactioioioioionnnnnsssss sact TTTTTrrrrraaaaannnnnsact sact sact Refer Note 47 to the accompanying standalone financial statements as at March 31, 2021 for the disclosure of related parties and transactions with them. 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 due to the following reasons: it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr • • Inquired from the Management of the business plans for the subsidiary companies. We also referred to the economic conditions prevalent in the jurisdiction in which the subsidiary company operates. In cases where such indicators of impairment of investments existed, - - - - Tested the estimates and assumption made by the Company in calculation of the recoverable amounts, and the allowance for impairment for these investments. Tested the arithmetical accuracy of the computation of recoverable amounts of investments Evaluated the forecast of future cash flows used by the management in the model to compute the recoverable value. Assessment of accuracy of historical forecasting by comparing previously forecasted cash flows to actual. • Discussed with the component auditors to develop an understanding of the operating performance and net worth position of the subsidiaries. Based on our procedures, we also considered the adequacy of disclosures in respect of investment in the said subsidiaries in Note 8 to the standalone financial statements including whether the disclosures on key judgements, assumptions and quantitative data with respect to impairment loss allowance in the financial statements are appropriate and sufficient. Our procedures included the following steps: • Obtaining an understanding of the Company’s policies and procedures in respect of identification of related parties and transactions with them. We also traced the related parties from declaration given by directors, wherever applicable. Read the minutes of the meetings of Board of Directors and Audit Committee and verified that the transactions are approved in accordance with internal procedures and the applicable regulations to the Company. • Pearl Global Industries Limited Annual Report 2020-21 159 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited KKKKKeeeeey Ay Ay Ay Ay Audududududit Mit Mit Mit Mit Maaaaatttttttttteeeeersrsrsrsrs - - the significance of transactions with related parties during the year ended March 31, 2021; and related party transactions are subject to compliance requirement under the Companies Act, 2013 and SEBI (listing and Obligation Disclosure Requirement) 2015. it addresesesesessesesesesed td td td td the khe khe khe khe keeeeey ay ay ay ay audududududit mit mit mit mit maaaaatttttttttteeeeerrrrr it addr HHHHHooooow ouw ouw ouw ouw our ar ar ar ar audududududit addr it addr it addr • Tested on a sample basis the arrangements between the related parties along with supporting documents to evaluate the management’s assertions that the transactions were at arm’s length and in the ordinary course of business. • Evaluated and tested on a sample basis the rights and obligations of the related parties and assessed whether the transactions were recorded appropriately and disclosed in accordance with IND AS 24, 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. IIIIInnnnnfofofofoforrrrrmmmmmaaaaatttttioioioioion On On On On Otttttheheheheher tr tr tr tr thhhhhaaaaan tn tn tn tn the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttts as as as as and And And And And Audududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Reeeeepppppooooorrrrrt Tt Tt Tt Tt Theheheheherrrrreeeeeooooonnnnn The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the standalone financial statements and our auditor’s report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s report. 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 when it becomes available 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. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. hose Chhhhhaaaaargrgrgrgrgeeeeed wd wd wd wd wititititith Gh Gh Gh Gh Govovovovoveeeeerrrrrnnnnnaaaaancncncncnce foe foe foe foe for tr tr tr tr the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss hose C RRRRResesesesespppppooooonnnnnsibsibsibsibsibilililililititititity of My of My of My of My of Maaaaannnnnaaaaagggggeeeeemememememennnnnt at at at at and Tnd Tnd Tnd Tnd Those C hose C hose C 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, 160 Pearl Global Industries Limited Annual Report 2020-21 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited 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. it of the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnntttttsssss AAAAAudududududitititititooooorrrrr’’’’’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititities fo ies fo ies fo ies for tr tr tr tr the Ahe Ahe Ahe Ahe Audududududit of t it of t it of t ies fo it of t Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. • 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. Pearl Global Industries Limited Annual Report 2020-21 161 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited 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. RRRRReeeeepppppooooorrrrrt ot ot ot ot on On On On On Otttttheheheheher Lr Lr Lr Lr Leeeeegggggaaaaal al al al al and Rnd Rnd Rnd Rnd Reeeeeggggguuuuulllllaaaaatttttooooorrrrry Ry Ry Ry Ry Reeeeeqqqqquuuuuiiiiirrrrreeeeemememememennnnntttttsssss 1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in “““““AAAAAnnnnnnexnexnexnexnexuuuuurrrrre Ae Ae Ae Ae A””””” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 2. As required by Section 143(3) of the Act, based on our audit we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. 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. d) e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 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 of 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 of 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. 162 Pearl Global Industries Limited Annual Report 2020-21 Independent Auditor’s Report (contd...) To The Members of Pearl Global Industries Limited 3. With respect to the matter to be included in the Auditors’ report under Section 197(16): In our opinion and according to the information and explanation given to us, the Company has paid remuneration to its directors during the year is in accordance with the provisions of and limit laid down under section 197 read with Schedule V of the Act. FFFFFooooor B.Rr B.Rr B.Rr B.Rr B.R. G. G. G. G. Guuuuuptptptptpta & Co a & Co..... a & Co a & Co a & Co Chartered Accountants, Firm’s Registration Number 008352N k Agaaaaarrrrrwwwwwaaaaalllll))))) (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Ag k Ag k Ag Partner Membership Number 073696 UUUUUDDDDDIIIIIN: 21073696A N: 21073696A N: 21073696A N: 21073696AAAAAAAAAAAAAAAABBBBBH9813 H9813H9813 H9813H9813 N: 21073696A Place of Signature: New Delhi Date: 21.06.2021 Pearl Global Industries Limited Annual Report 2020-21 163 Annexure ‘A’ to the Independent Auditors’ Report l Globbbbbaaaaalllll l Glo s of Peaeaeaeaearrrrrl Glo l Glo s of P t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the she she she she stttttaaaaandndndndndaaaaalololololone fine fine fine fine finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnnttttts of P s of P t of e AAAAAnnnnnnexnexnexnexnexuuuuurrrrre ‘e ‘e ‘e ‘e ‘AAAAA’ t’ t’ t’ t’ to to to to to the Ihe Ihe Ihe Ihe Indendendendendepppppeeeeendendendendendennnnnt At At At At Audududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Reeeeepppppooooorrrrrt of e t of e l Glo s of P t of e IIIIIndndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd The Annexure referred to in independent Auditors’ Report to the members of the Company on the standalone financial statements for the year ended March 31, 2021; 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’ and ‘investment property’) are held in the name of the Company. However certain deeds of immovable properties that are mortgaged with the banks for securing borrowings were not available for verification. Further, in respect of immovable properties taken on lease and disclosed as right of-use-assets in the standalone financial statements, the lease agreements are in the name of the Company. ii) In respect of its inventory: a) On the basis of information and explanation provided by the Management, inventories have been physically verified by the Management during the year. In our opinion, the frequency of physical verification followed by the Management is reasonable. b) 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, 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 iv) v) In our opinion and according to the information and explanations given to us, the Company has neither advanced any loans, nor has made any investments during the year. Also, the Company has not provided any security in connection with a loan to any other body corporate or person and accordingly, compliance under Sections 185 and 186 of the Act in respect of loans, investments and securities is not applicable to the Company. Further, the Company has complied with Section 186 of the Act in respect of corporate guarantee provided by the Company. 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. Accordingly, the provisions of paragraph 3 (v) of the Order are not applicable to the Company. 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 164 Pearl Global Industries Limited Annual Report 2020-21 Annexure ‘A’ to the Independent Auditors’ Report Company. Accordingly, the provisions of paragraph 3(vi) of the Order 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, 2021 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 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: S.S.S.S.S. NNNNNaaaaame ofme ofme ofme ofme of NNNNNooooo..... a) b) ttttthe She She She She Stttttaaaaatttttuuuuuttttteeeee Income Tax Act, 1961 Income Tax Act, 1961 NNNNNaaaaatttttuuuuurrrrre of De of De of De of De of Duesuesuesuesues Income Tax Demand Income Tax Demand AAAAAmoumoumoumoumounnnnnttttt PPPPPeeeeerrrrrioioioioiod td td td td to wo wo wo wo whhhhhichichichichich iiiiin n n n n ` l l l l laaaaakkkkkhhhhh aaaaamoumoumoumoumounnnnnt rt rt rt rt relelelelelaaaaattttteseseseses 8.30 A.Y 2015-16 0.036 A.Y 2015-16 c) Income Tax Act, 1961 Income Tax Demand 38.83 A.Y 2016-17 FFFFFooooorrrrruuuuum wm wm wm wm wh eh eh eh eh errrrreeeee e is peeeeen dn dn dn dn diiiiinnnnnggggg dddddisisisisisp up up up up uttttte is p e is p e is p e is p Appeal Pending before ITAT Rectification U/s 154 - Assessing Officer Appeal pending before ITAT. Appeal effect of CIT Order is pending before AO. Demand U/s 143(1)(a) d) e) f ) Income Tax Act, 1961 Income Tax Act, 1961 Income Tax Act, 1961 Income Tax Demand Income Tax Demand Income Tax Demand 16.61 A.Y 2017-18 6.06 Upto A.Y. 2020-21 Demand as per traces Portal. Demand as per traces Portal. 2.65 A.Y. 21-22 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. However, the Company has availed the facility of rescheduling of loans from banks during the lockdown period amid COVID-19 pandemic. The Company has not taken any loan from Government or has not issued any debentures. ix) The Company did not raise any money by the way of initial public or further public offer (including debt instruments) during the year. 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, all transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, and the details of such transactions have been disclosed in the financial statements etc. 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. Pearl Global Industries Limited Annual Report 2020-21 165 Annexure ‘A’ to the Independent Auditors’ Report xv) The Company has not entered into any non-cash transactions with directors or persons connected with him. 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. 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’s Registration Number 008352N (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Ag k Ag k Agaaaaarrrrrwwwwwaaaaalllll))))) k Ag Partner Membership Number 073696 UUUUUDDDDDIIIIIN: 21073696A N: 21073696A N: 21073696A N: 21073696AAAAAAAAAAAAAAAABBBBBH9813 H9813H9813 H9813H9813 N: 21073696A Place of Signature: New Delhi Date: 21.06.2021 166 Pearl Global Industries Limited Annual Report 2020-21 Annexure ‘B’ to the Independent Auditors’ Report t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the She She She She Stttttaaaaandndndndndaaaaalololololone Fne Fne Fne Fne Fiiiiinnnnnaaaaancianciancianciancial Sl Sl Sl Sl Stttttaaaaattttteeeeemememememennnnnttttts of P t of e AAAAAnnnnnnexnexnexnexnexuuuuurrrrre ‘Be ‘Be ‘Be ‘Be ‘B’ t’ t’ t’ t’ to to to to to the Ihe Ihe Ihe Ihe Indendendendendepppppeeeeendendendendendennnnnt At At At At Audududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Reeeeepppppooooorrrrrt of e t of e s of Peaeaeaeaearrrrrlllll s of P s of P t of e s of P GloGloGloGloGlobbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd RRRRReeeeepppppooooorrrrrt ot ot ot ot on tn tn tn tn the Ihe Ihe Ihe Ihe Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co he Commmmmpppppaaaaannnnnies Aies Aies Aies Aies Act,ct,ct,ct,ct, he Co he Co n 143 of t n 3 of Seeeeectctctctctioioioioion 143 of t n 143 of t n 3 of S ) of Sububububub-se-se-se-se-sectctctctctioioioioion 3 of S n 3 of S ) of S se (se (iiiii) of S ) of S se (se ( l Connnnntttttrrrrroooools uls uls uls uls undendendendender Cr Cr Cr Cr Clllllaaaaauuuuuse ( l Co l Co n 143 of the Co he Co n 143 of t n 3 of S ) of S l Co 2013 (“ttttthe Ahe Ahe Ahe Ahe Act”) ct”) ct”)ct”) 2013 (“ 2013 (“ ct”) 2013 (“ 2013 (“ We have audited the internal financial controls with reference to financial statements of Pearl Global Industries Limited (“(“(“(“(“ttttthe Co he Commmmmpppppaaaaannnnnyyyyy”)”)”)”)”) as of March 31, 2021 in conjunction with our audit of the standalone financial statements of the Company he Co he Co he Co for the year ended on that date. MMMMMaaaaannnnnaaaaagggggeeeeemememememennnnnt’t’t’t’t’s Rs Rs Rs Rs Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititity foy foy foy foy for Ir Ir Ir Ir Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co l Co l Connnnntttttrrrrrooooolslslslsls l Co The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act. AAAAAudududududitititititooooorsrsrsrsrs’ R’ R’ R’ R’ Resesesesespppppooooonnnnnsibsibsibsibsibilililililititititityyyyy Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established & maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system with reference to financial statements. l Connnnntttttrrrrroooools wls wls wls wls wititititith rh rh rh rh refeefeefeefeeferrrrreeeeencncncncnce te te te te to fio fio fio fio finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnntttttsssss l Co g of Innnnnttttteeeeerrrrrnnnnnaaaaal Fl Fl Fl Fl Fiiiiinnnnnaaaaancianciancianciancial Co l Co g of I MMMMMeaeaeaeaeannnnniiiiinnnnng of I g of I l Co g of I A company’s internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention Pearl Global Industries Limited Annual Report 2020-21 167 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, 2021, 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’s Registration Number 008352N k Agaaaaarrrrrwwwwwaaaaalllll))))) (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Ag k Ag k Ag Partner Membership Number 073696 UUUUUDDDDDIIIIIN: 21073696A N: 21073696A N: 21073696A N: 21073696AAAAAAAAAAAAAAAABBBBBH9813 H9813H9813 H9813H9813 N: 21073696A Place of Signature: New Delhi Date: 21.06.2021 168 Pearl Global Industries Limited Annual Report 2020-21 Balance Sheet as at March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs NNNNNotototototeeeee NNNNNooooo..... (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 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 AsAsAsAsAssetsetsetsetsetsssss I. Property, plant and equipment NNNNNooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss (a) (b) Capital work in progress Right of use assets (c) Investment properties (d) (e) Other Intangible assets Financial assets (f ) (i) (ii) (iii) Loans (iv) Other financial assets Investment in subsidiaries Investment - others (g) Deferred Tax Assets (net) (h) Non current tax assets (net) (i) Other non current assets TTTTTotototototaaaaal Nl Nl Nl Nl Nooooonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss CCCCCuuuuurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss (a) (b) II. Equity share capital (c) Other current assets TTTTTotototototaaaaal cul cul cul cul currrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss TTTTTotototototaaaaal al al al al assssssetsetsetsetsetsssss EqEqEqEqEquuuuuititititity ay ay ay ay and lnd lnd lnd lnd liabiabiabiabiabilililililitititititiesiesiesiesies EqEqEqEqEquuuuuititititityyyyy (a) (b) Other equity TTTTTotototototaaaaal el el el el eqqqqquuuuuititititityyyyy LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies NNNNNooooonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies Financial liabilities (a) Borrowings (i) Lease Liabilities (ii) (iii) Others financial liabilities Provisions (b) (c) Deferred tax liabilities (net) (d) Other non current liabilities TTTTTotototototaaaaal nol nol nol nol nonnnnn- cu- cu- cu- cu- currrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies CCCCCuuuuurrrrrrrrrreeeeennnnnt lt lt lt lt liabiabiabiabiabilililililitititititiesiesiesiesies (a) Financial liabilities Borrowings (i) (ii) Lease Liabilities (iii) Trade payables (iv) Other financial liabilities (b) Other current liabilities (c) 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 - - Total outstanding due of micro enterprises and small enterprises Total outstanding due of creditors other than micro enterprises and small enterprises 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: June 21, 2021 4 5 49 6 7 8 9 10 11 12 13 14 15 9 16 17 18 10 11 14 19 20 21 49 23 24 12 25 22 49 26 23 25 24 3 12,848.58 41.63 2,903.27 6,054.60 54.07 11,578.00 336.63 492.31 754.72 390.53 556.75 53.60 ---------------------------------------------- 36,064.69 36,064.69 36,064.69 36,064.69 36,064.69 ---------------------------------------------- 13,269.13 754.38 14,521.72 4,599.50 1,108.15 323.84 211.91 6,842.69 ---------------------------------------------- 41,631.32 41,631.32 41,631.32 41,631.32 41,631.32 ---------------------------------------------- 77,696.01 77,696.01 77,696.01 77,696.01 77,696.01 =================== 2,166.39 29,205.63 ---------------------------------------------- 31,372.02 31,372.02 31,372.02 31,372.02 31,372.02 ---------------------------------------------- 8,199.78 2,836.18 137.28 944.06 - 3,013.35 ---------------------------------------------- 15,130.65 15,130.65 15,130.65 15,130.65 15,130.65 ---------------------------------------------- 11,328.87 381.57 481.65 15,688.60 2,529.29 710.90 72.46 ---------------------------------------------- 31,193.34 31,193.34 31,193.34 31,193.34 31,193.34 ---------------------------------------------- 77,696.01 77,696.01 77,696.01 77,696.01 77,696.01 =================== 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 =================== l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd d of Dirrrrreeeeectctctctctooooors of P rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo 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 rs of P l Glo r & o f of B d of Di (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 Place of Signature: Gurugram Date: June 21, 2021 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Pearl Global Industries Limited Annual Report 2020-21 169 Statement of Profit and Loss for year ended March 31, 2021 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 ofit/ (loslosloslosloss) bs) bs) bs) bs) befoefoefoefoeforrrrre te te te te taaaaax (x (x (x (x (VVVVV-----VVVVVI)I)I)I)I) ofit/ ( ofit/ ( VII PPPPPrrrrrofit/ ( 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 or loss (a) Re-measurement gains/ (losses) on defined benefit plans (ii) (B) (i) Income tax on items that will not be reclassified to profit or loss Items that will be reclassified to of profit or loss (a) Net movement in effective portion of cash flow hedge reserve (b) Exchange differences in translation of financial statements of a foreign operation Income tax on items that will be reclassified to profit or loss (ii) he yearrrrr, net of t he yea he yea s) for tr tr tr tr the yea s) fo s) fos) fo OOOOOtttttheheheheher cr cr cr cr cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome/(me/(me/(me/(me/(loslosloslosloss) fo , net of taaaaaxxxxx , net of t , net of t he yea , net of t he yearrrrr, net of t he yea he yea s) for tr tr tr tr the yea s) fos) fo s) fo XI TTTTTotototototaaaaal cl cl cl cl cooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome/(me/(me/(me/(me/(loslosloslosloss) fo , net of taaaaaxxxxx , net of t , net of t he yea , net of t 10 peeeeer shr shr shr shr shaaaaarrrrre)e)e)e)e) 10 p 10 p XII Earnings per share: (face value ````` 10 p 10 p 1) Basic (amount in `) 2) Diluted (amount in `) y of Signnnnnificificificificificaaaaannnnnt At At At At Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg Pooooolllllicies y of Sig y of Sig SSSSSuuuuummmmmmmmmmaaaaarrrrry of Sig icies icies icies y of Sig icies 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: June 21, 2021 NNNNNotototototeeeee NNNNNooooo..... 27 28 (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, 2020 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2020 ch 31, 2020 ch 31, 2021 ch 31, 2021 ch 31, 2020 ch 31, 2021 ch 31, 2020 ch 31, 2021 82,533.33 77,140.04 3,338.77 2,408.39 ---------------------------------------------------------- ---------------------------------------------------------- 85,872.10 85,872.10 79,548.43 79,548.43 85,872.10 79,548.43 85,872.10 79,548.43 85,872.10 79,548.43 ---------------------------------------------------------- ---------------------------------------------------------- 29 30 31 32 33 34 35 36 12 37 38 33333 23,058.22 24,340.92 (91.01) 10,779.00 2,401.62 1,813.42 19,429.61 ---------------------------------------------------------- 81,731.78 81,731.78 81,731.78 81,731.78 81,731.78 ---------------------------------------------------------- (2,183.35) (1,263.82) ---------------------------------------------------------- (919.52) (919.52) (919.52) (919.52) (919.52) - (1,007.86) 10.94 ---------------------------------------------------------- 77.40 77.40 77.40 77.40 77.40 ---------------------------------------------------------- 84.32 (26.31) 979.45 11.96 (342.72) ---------------------------------------------------------- 706.70 706.70 706.70 706.70 706.70 ---------------------------------------------------------- 784.10 784.10 784.10 784.10 784.10 ---------------------------------------------------------- 0.36 0.36 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) ---------------------------------------------------------- 1,090.52 1,090.52 1,090.52 1,090.52 1,090.52 421.00 141.83 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 d of Dirrrrreeeeectctctctctooooors of P l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo 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 rs of P l Glo r & o f of B d of Di (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 Place of Signature: Gurugram Date: June 21, 2021 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 170 Pearl Global Industries Limited Annual Report 2020-21 Statement of changes in equity for the year ended March 31, 2021 AAAAA..... EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre Ce Ce Ce Ce Caaaaapppppitititititaaaaalllll 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 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 Changes during the year ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 B.B.B.B.B. OOOOOtttttheheheheher Eqr Eqr Eqr Eqr Equuuuuititititityyyyy PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 Implementation of Ind AS 116: Leases (Refer Note No. 49) 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 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 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 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 Foreign Currency Transalation Reserve ch 31, 2021 ch 31, 2021 BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 (Amount in ` Lakh, unless otherwise stated) 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 RRRRReseeseeseeseeserrrrrvvvvves aes aes aes aes and Snd Snd Snd Snd Suuuuurprprprprpllllluuuuusssss OOOOOtttttheheheheherrrrr C oC oC oC oC ommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsiveeeee IIIIIncncncncncooooom em em em em e TTTTTotototototaaaaal Ol Ol Ol Ol Otttttheheheheherrrrr E qE qE qE qE quuuuuititititityyyyy GGGGGeeeeenenenenenerrrrraaaaalllll RRRRReseeseeseeseeserrrrrvvvvveeeee SSSSSeeeeecucucucucurrrrrititititityyyyy PPPPPrrrrreeeeemmmmmiuiuiuiuiummmmm RRRRReeeeedededededemmmmmptptptptptioioioioionnnnn RRRRReseeseeseeseeserrrrr vvvvveeeee CCCCCaaaaapppppitititititaaaaalllll AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioionnnnn RRRRReseeseeseeseeserrrrr vvvvveeeee RRRRRetetetetetaaaaaiiiiineneneneneddddd EEEEEaaaaarrrrrnnnnniiiiinnnnngggggsssss 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 EEEEEffeffeffeffeffectctctctctiviviviviveeeee CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy PPPPPooooorrrrrtttttioioioioion ofn ofn ofn ofn of TTTTTrrrrraaaaannnnnslslslslslaaaaatttttioioioioionnnnn RRRRReseeseeseeseeserrrrr vvvvveeeee----- C C C C Caaaaash Fsh Fsh Fsh Fsh Flololololowwwww FFFFFooooorrrrreigeigeigeigeignnnnn HHHHHeeeeedddddgggggeeeee ooooopppppeeeeerrrrraaaaatttttioioioioionnnnnsssss ----- ----- - - - - ----- - - - - - - ----- - - - - - - ----- - - - - - - ----- - - (190.61) 500.89 - - - (645.22) 87.92 - 588.81 588.81 588.81 588.81 588.81 (645.22) (645.22) (645.22) (645.22) (645.22) (649.88) (133.68) 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 7,037.54 7,037.54 7,037.54 7,037.54 7,037.54 - - - - - - - - - 77.40 - 58.01 - - - - - - (645.22) (645.22) (645.22) (645.22) (645.22) ----- 636.73 - - 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) 87.92 87.92 87.92 87.92 87.92 (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) 28,421.53 28,421.53 28,421.53 28,421.53 28,421.53 77.40 77.40 77.40 77.40 77.40 636.73 636.73 636.73 636.73 636.73 58.01 58.01 58.01 58.01 58.01 - - - - ----- - - ----- ----- - - 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 7,172.94 7,172.94 7,172.94 7,172.94 7,172.94 (8.49) (8.49) (8.49) (8.49) (8.49) 11.96 11.96 11.96 11.96 11.96 11.96 11.96 11.96 11.96 11.96 11.96 29,205.63 29,205.63 29,205.63 29,205.63 29,205.63 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: June 21, 2021 l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd d of Dirrrrreeeeectctctctctooooors of P rs of Peaeaeaeaearrrrrl Glo rs of P rs of P l Glo l Glo 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 rs of P l Glo r & o f of B d of Di (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 Place of Signature: Gurugram Date: June 21, 2021 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Pearl Global Industries Limited Annual Report 2020-21 171 Statement of Cash Flow for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs 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 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 Enhanced Compensation Receivable Loss on Sale of Property, Plant & Equipment (PPE) Impairment of Investment in Subsidiary Foreign Currency Translation Reserve on Foreign Operation 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 sh gsh geeeeenenenenenerrrrraaaaattttteeeeed frd frd frd frd frooooom om om om om opppppeeeeerrrrraaaaatttttioioioioionnnnnsssss sh gsh g CCCCCaaaaash g Tax paid on dividend Direct tax paid (net of refunds) sh flow bw bw bw bw befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss sh flo sh flo CCCCCaaaaash flo sh flo ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss::::: Enhanced Compensation Receivable on Compulsary Acquisition (Profit)/loss on sale of PPE Impairment of investment in subsidiaries sh innnnnflofloflofloflow frw frw frw frw frooooom/(m/(m/(m/(m/(uuuuusesesesesed id id id id innnnn) o) o) o) o) opppppeeeeerrrrraaaaatttttiiiiinnnnng act NNNNNet cet cet cet cet caaaaash i g act g act g activivivivivitititititiesiesiesiesies sh i sh i g act sh i ( A ) ( A ) ( A ) ( A ) ( A ) g act g act g activivivivivitititititiesiesiesiesies CCCCCaaaaash flo sh flo sh flo sh flows frws frws frws frws frooooom im im im im innnnnvvvvvesesesesestttttiiiiinnnnng act sh flo g act Purchase of property, plant and equipment (Including Net ROU) Sale proceeds of property, plant and equipment (Increase)/decrease in capital work in progress Sale/(Purchase) of investment properties (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 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (919.52) 1,090.51 1,813.42 2,401.62 (133.67) (1.00) (36.78) (29.97) (16.61) (770.91) (119.39) (255.85) (174.27) - - 278.86 2,335.15 (1,037.41) (33.91) 11.96 ---------------------------------------------------------- 3,311.72 3,311.72 3,311.72 3,311.72 3,311.72 (5,060.12) 74.11 (151.52) 82.10 (1,822.56) 1,523.42 7,172.45 (109.69) 357.88 147.24 15.12 15.44 (66.50) ---------------------------------------------------------- 5,489.09 5,489.09 5,489.09 5,489.09 5,489.09 - (98.30) ---------------------------------------------------------- 5,390.79 5,390.79 5,390.79 5,390.79 5,390.79 (2,335.15) 1,037.41 33.91 ---------------------------------------------------------- 4,126.96 4,126.96 4,126.96 4,126.96 4,126.96 ---------------------------------------------------------- (193.47) 12.41 190.87 218.04 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) ---------------------------------------------------------- 1,299.89 1,299.89 1,299.89 1,299.89 1,299.89 - (143.29) 27.24 ---------------------------------------------------------- 1,183.85 1,183.85 1,183.85 1,183.85 1,183.85 ---------------------------------------------------------- (4,564.85) 264.20 (72.78) 36.61 172 Pearl Global Industries Limited Annual Report 2020-21 Statement of Cash Flow for the year ended March 31, 2021 (Contd.) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Sale/(Purchase) of Intangible assets (Increase)/decrease in Capital Advances Increase/(decrease) in Capital Creditors (Increase)/decrease in Investment in subsidiaries (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 g activivivivivitititititiesiesiesiesies g act sh flows frws frws frws frws frooooom fim fim fim fim finnnnnaaaaancincincincincinnnnng act g act sh flo sh flo CCCCCaaaaash flo g act sh flo Increase/ (decrease) in long term borrowings Increase/ (decrease) in short term borrowings Increase in Lease Liabilities Dividend paid (Net of Tax) Other borrowing cost Interest paid sh innnnnflofloflofloflow frw frw frw frw frooooom/(m/(m/(m/(m/(uuuuusesesesesed id id id id innnnn) fi) fi) fi) fi) finnnnnaaaaancincincincincinnnnng act sh i NNNNNet cet cet cet cet caaaaash i sh i g activivivivivitititititiesiesiesiesies g act g act sh i g act sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C) A+B+C) A+B+C) sh e sh and cnd cnd cnd cnd caaaaash e sh e sh a se) In cn cn cn cn caaaaash a sh a se) I se (dededededecccccrrrrreaeaeaeaease) I se) I se (se ( se ( NNNNNet Iet Iet Iet Iet Incncncncncrrrrreaeaeaeaease ( A+B+C) A+B+C) sh e sh a se) I Opening balance of cash and cash equivalents sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote noe noe noe noe no. 17) . 17) . 17) sh e sh and cnd cnd cnd cnd caaaaash e sh e sh a TTTTTotototototaaaaal cl cl cl cl caaaaash a sh a . 17) . 17) sh e sh a sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss sh e sh e CoCoCoCoCommmmmpppppooooonenenenenennnnnttttts of c sh and cnd cnd cnd cnd caaaaash e sh a s of caaaaash a sh a s of c s of c sh e sh a s of c Cash, Cheque/drafts on hand With banks - Current account With banks - Deposit account sh eqqqqquuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote noe noe noe noe no. 17) . 17) . 17) sh e sh and cnd cnd cnd cnd caaaaash e sh e sh a TTTTTotototototaaaaal cl cl cl cl caaaaash a sh a . 17) . 17) sh e sh a ( B ) ( B ) ( B ) ( B ) ( B ) ( C ) ( C ) ( C ) ( C ) ( C ) (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 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 (9.20) 66.43 173.53 324.31 16.77 12.89 1.94 (176.54) 108.72 770.91 ---------------------------------------------------------- 1,517.61 1,517.61 1,517.61 1,517.61 1,517.61 ---------------------------------------------------------- 3,221.27 (3,922.15) - - (403.94) (2,000.02) ---------------------------------------------------------- (3,104.84) (3,104.84) (3,104.84) (3,104.84) (3,104.84) ---------------------------------------------------------- 2,539.73 2,539.73 2,539.73 2,539.73 2,539.73 2,059.77 ---------------------------------------------------------- 4,599.50 4,599.50 4,599.50 4,599.50 4,599.50 ---------------------------------------------------------- 83.30 4,338.60 177.60 ---------------------------------------------------------- 4,599.50 4,599.50 4,599.50 4,599.50 4,599.50 ---------------------------------------------------------- he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (17.57) (38.80) (819.17) 109.25 (596.97) (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) 2,234.66 ---------------------------------------------------------- 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 ---------------------------------------------------------- NNNNNotototototeeeee::::: (a) The above Standalone Statement of Cash Flows has been prepared under the Indirect Method as set out in Ind AS 7 ‘Statement of Cash Flows’. b) The Increase/(Decrease) in liabilities arising from financing activities includes non-cash transactions as under: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs EIR adjustment of borrowings i) ii) Accrued Interest on Borrowings iii) Unwinding of discount on security deposit Summary of Significant Accounting Policies 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 he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 7.39 14.22 40.24 17.03 12.81 30.32 d of Dirrrrreeeeectctctctctooooors of P l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd rs of P rs of P rs of Peaeaeaeaearrrrrl Glo l Glo l Glo 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 rs of P l Glo r & o f of B d of Di (D(D(D(D(Deeeeeeeeeepppppaaaaak Ag k Agk Agaaaaarrrrrwwwwwaaaaalllll))))) k Agk Ag Partner Membership Number 073696 Place of Signature: New Delhi Date: June 21, 2021 (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 Place of Signature: Gurugram Date: June 21, 2021 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Pearl Global Industries Limited Annual Report 2020-21 173 Notes to standalone financial statements for the year ended March 31, 2021 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 C-17/1, Paschimi Marg, Vasant Vihar, New Delhi. 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 June 21, 2021. 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 sis of Prrrrreeeeepppppaaaaarrrrraaaaattttti oi oi oi oi on an an an an and p sis of P sis of P BBBBBaaaaasis of P nd pnd p sis of P statements are prepared under the historical cost convention except for certain financial assets and liabilities (including derivative financial instruments) that are measured at fair value or amortised cost. All assets and liabilities have been classified as current or noncurrent according to the Company's operating cycle and other criteria set out in the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current non-current classification of assets and liabilities. FFFFFuuuuunctnctnctnctnctioioioioionnnnnaaaaal al al al al and Pnd Pnd Pnd Pnd Prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioion Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncyyyyy The financial statements are presented in ` and all values are rounded to the nearest lakhs upto two decimal places except otherwise stated. GGGGGoooooiiiiinnnnng Co g Cog Co g Co g Concncncncnceeeeerrrrrnnnnn The board of directors have considered the financial position of the Company at 31st March 2021 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 RRRRReeeeeccccceeeeennnnnt At At At At Accccccccccououououounnnnntttttiiiiinnnnng Pg Pg Pg Pg Prrrrrooooonounounounounouncncncncnceeeeemememememennnnntttttsssss Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. However, there is no such notification which would have been applicable from April 1, 2021 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 pursuant to issuance of the Companies (Indian Accounting Standards) Amendment Rules 2020, were applied by the Company during the year: - - - - Amendment to Ind AS 103- Business Combinations Amendment to , Ind AS 39, Ind AS 107 and Ind AS 109- Interest Rate Benchmark Reform Amendment to Ind AS 116- Leases Amendment to Ind AS 1 and Ind AS 8- Definition of Material None of the changes described above, or any of the other changes to the Ind AS, with the exception of Ind AS 116 (Leases), have a impact on the net worth, financial position, financial performance or on the cash flow of the Company. E 3: SIGGGGGNNNNNIIIIIFIFIFIFIFICCCCCAAAAANNNNNT AT AT AT AT ACCCCCCCCCCOOOOOUUUUUNNNNNTTTTTIIIIINNNNNG PG PG PG PG POOOOOLLLLLIIIIICCCCCIIIIIEEEEESSSSS E 3: SI E 3: SI NONONONONOTTTTTE 3: SI E 3: SI a)a)a)a)a) SigSigSigSigSignnnnnificificificificificaaaaannnnnt ac es andndndndnd es a s, estttttiiiiimmmmmaaaaatttttes a es a s, es t accccccououououounnnnntttttiiiiinnnnng jg jg jg jg judududududggggg eeeeemememememennnnnttttts, es s, es t ac t ac es a s, es t ac aaaaassssssssssuuuuummmmmptptptptptioioioioionnnnnsssss In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the 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: 174 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 • 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. • Highly Probable Sale transaction for hedging contracts. nd estttttiiiiimmmmmaaaaatttttioioioioion un un un un uncncncncnceeeeerrrrrtttttaaaaaiiiiinnnnntttttiesiesiesiesies nd es nd es AsAsAsAsAssssssuuuuummmmmptptptptptioioioioionnnnns as as as as and es nd es Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment included in the following notes: • measurement of defined benefit obligations and planned assets: key actuarial assumptions. • • • • • • recognition of deferred tax assets: availability of future taxable profit against which carry-forward tax losses can be used. impairment of financial assets. recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources. impairment test of non-financial assets: key assumptions used in estimating recoverable cash flows. fair value measurement of financial instruments. Estimation of Rate of RODTEP for recognition of export incentive claim receivable for the period from January 1, 2021 to March 31, 2021. bbbbb))))) CCCCCuuuuurrrrrrrrrreeeeennnnnt vt vt vt vt veeeeersrsrsrsrsuuuuus nos nos nos nos nonnnnn-----cucucucucurrrrrrrrrreeeeennnnnt cl t clt claaaaassssssific t clt cl sific sific sificaaaaatttttioioioioionnnnn sific The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. AsAsAsAsAssetsetsetsetsetsssss::::: An asset is treated as current when it is: a) Expected to be realised or intended to be sold or consumed in normal operating cycle. b) Held primarily for the purpose of trading c) Expected to be realised within twelve months after the reporting period, or d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies::::: A liability is current when: (a) It is expected to be settled in normal operating cycle (b) It is held primarily for the purpose of trading (c) It is due to be settled within twelve months after the reporting period, or (d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non- current assets and liabilities. OpOpOpOpOpeeeeerrrrraaaaatttttiiiiinnnnng cg cg cg cg cycleycleycleycleycle::::: The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle. ccccc))))) PPPPPrrrrrooooo ppppp eeeeerrrrr ttttt yyyyy, P, P, P, P, Plllllaaaaannnnnt a E) an dn dn dn dn d E) a t (PPPPPP E) a E) a t (P nd Equuuuu iiiiipppppm em em em em ennnnnt (P t (P nd Eq nd Eq t a t a t and Eq E) a t (P nd Eq t a DDDDDeeeeeppppprrrrreeeeeciaciaciaciaciatttttioioioioionnnnn Property, plant and equipment and capital work in progress are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Such cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct services, any other costs directly attributable to bringing the assets to its working condition for their intended use and cost of replacing part of the plant and equipment and borrowing costs for long- term construction projects if the recognition criteria are met. When parts of an item of PPE having significant costs have different useful lives, then they are accounted for as separate items (major components) of property, plant & equipment. An item of property, plant and equipment and any significant part initially recognised is de-recognised upon Pearl Global Industries Limited Annual Report 2020-21 175 Notes to standalone financial statements for the year ended March 31, 2021 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. g Costtttts :s :s :s :s : The present value of the g Cos g Cos DDDDDeeeeecccccooooommmmmmmmmmisisisisissiosiosiosiosionnnnniiiiinnnnng Cos 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. Freehold Land is not depreciated. Depreciation Method, useful lives and residual values are reviewed at each financial year end and adjusted, if appropriate. ddddd))))) IIIIInnnnnvvvvvesesesesestttttmememememennnnnt Pt Pt Pt Pt Prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies Property that is held for rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any. The Company, based on technical assessment made by management, depreciates the building over estimated useful life of 60 years. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS::::: On transition to Ind AS, the Company has elected to continue with the carrying value of all its investment properties as at 1 April 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such investment properties. e)e)e)e)e) OOOOOtttttheheheheher Ir Ir Ir Ir Innnnntttttaaaaannnnngggggibibibibible ale ale ale ale assssssetsetsetsetsetsssss nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea nd mea RRRRReeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea Intangible assets that are acquired by the Company are measured initially at cost. Intangible assets with finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses, if any. All expenditures, qualifying as Intangible Assets are amortized over estimated useful life. Specialized softwares are amortized over a period of 3 years or license period whichever is earlier. TTTTTrrrrraaaaannnnnsitsitsitsitsitioioioioion tn tn tn tn to Io Io Io Io Ind And And And And ASSSSS On transition to Ind AS, the Company has elected to continue with the carrying value of all its intangible assets recognized as at April 01, 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such intangible assets. SSSSSubse t Expppppeeeeendndndndndititititituuuuurrrrreeeee::::: Subsequent expenditure is t Ex ubseubseqqqqqueueueueuennnnnt Ex t Ex ubseubse t Ex capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognized in Statement of Profit and Loss as incurred. Amortisation and useful lives: Intangible assets with finite lives are amortised over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each 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 176 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. The amortisation method, residual value and the useful lives of intangible assets are reviewed annually and adjusted as necessary. fffff ))))) BBBBBooooorrrrrrrrrrooooowwwwwiiiiinnnnng cg cg cg cg cososososostttttsssss Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs consists of interest and amortization of ancillary costs that an entity incurs in connection with the borrowing of funds. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use. sactioioioioionnnnns as as as as and Tnd Tnd Tnd Tnd Trrrrraaaaannnnnslslslslslaaaaatttttioioioioionnnnnsssss sact ggggg ))))) FFFFFooooorrrrreigeigeigeigeign Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncy Ty Ty Ty Ty Trrrrraaaaannnnnsact sact sact FFFFFuuuuunctnctnctnctnctioioioioionnnnnaaaaal al al al al and pnd pnd pnd pnd prrrrreseeseeseeseesennnnntttttaaaaatttttioioioioionnnnnaaaaal cul cul cul cul currrrrrrrrreeeeencncncncncyyyyy The 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 Company primarily generates and expends cash. All the financial information presented in ` except where otherwise stated. sactioioioioionnnnns as as as as and bnd bnd bnd bnd baaaaalllllaaaaancncncncnceseseseses sact TTTTTrrrrraaaaannnnnsact sact sact Transactions in foreign currencies are translated into the functional currency of the Company at the exchange rates at the date the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currencies are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and iabilities that are measured in terms of historical cost are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings. Advaces received or paid in foreign currency are recognised at exchange rate on the date of transaction and not re- translated. hhhhh))))) RRRRReeeeevvvvveeeeennnnnue Rue Rue Rue Rue Reeeeecccccooooogggggnnnnnitititititioioioioionnnnn The Company derives revenue primarily from export of manufactured and traded goods. ue frue frooooom cm cm cm cm cooooonnnnntttttrrrrract wact wact wact wact wititititith cuh cuh cuh cuh cussssstttttooooomememememersrsrsrsrs ue frue fr RRRRReeeeevvvvveeeeennnnnue fr Revenue from contract with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring distinct goods or services to a customer as specified in the contract, excluding the amount collected on behalf of third parties(for example, taxes and duties collected on behalf of government) and net of returns & discounts. The Company has concluded that it is acting as principal in its revenue arrangements. The Company considers whether there are other promises in the contract that are separate performance obligations to which a protion of the transaction price needs to be allocated. In determining the transaction price for the sale of products, the Company considers the effect of variable consideration, the existence of significant financing component, non-cash consideration, and consideration payable to the customer (if any). The Company assesses its revenue arrangements against specific recognition criteria 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. Pearl Global Industries Limited Annual Report 2020-21 177 Notes to standalone financial statements for the year ended March 31, 2021 cific reeeeevvvvveeeeennnnnue rue rue rue rue reeeeecccccooooogggggnnnnnitititititioioioioion cn cn cn cn crrrrritititititeeeeerrrrriaiaiaiaia::::: cific r SSSSSpppppeeeeecific r cific r cific r le of prrrrroooooddddductuctuctuctuctsssss le of p (((((iiiii))))) SSSSSaaaaale of p le 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 (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. siderrrrraaaaatttttioioioioionnnnn side le Connnnnside side le Co VVVVVaaaaarrrrriabiabiabiabiable Co le Co side le Co If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. g Commmmmpppppooooonenenenenennnnnttttt SigSigSigSigSignnnnnificificificificificaaaaannnnnt Ft Ft Ft Ft Fiiiiinnnnnaaaaancincincincincinnnnng Co g Cog Co g Co Generally, the Company does not receive short term or long term advances from its customers except in certain scenarios. Using the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of promised good or service to the customer and when the customer pays for good or service will be one year or less. The company does not expect to have any contracts where the period between the transfer of promised goods and services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money. act baaaaalllllaaaaancncncncnceseseseses act b CoCoCoCoConnnnntttttrrrrract b act b act b Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. Trade receivables A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section Financial instruments – initial recognition and subsequent measurement. Contract liabilities A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract. Cost to obtain a contract The Company does not capitalise costs to obtain a contract because majorly the contracts have terms that do not extend beyond one year. The Company does not have a significant amount of capitalized costs related to fulfilment. iiiii))))) IIIIInnnnnvvvvveeeeennnnntttttooooorrrrriesiesiesiesies i) 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 178 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 ii) iii) them to their present location and condition. In the case of manufactured inventories and work-in- progress, cost includes an appropriate share of fixed production overheads based on normal operating capacity. Inventories of finished goods (traded) are valued at lower of procurement cost (FIFO method) or estimated net realizable value. Inventories of raw material, work in progress, accessories & consumables are valued at cost (weighted average method) or at estimated net realizable value whichever is lower. WIP cost includes appropriate portion of allocable overheads. Raw materials and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realisable value. iv) Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on a item by item basis. Obsolete or slow moving inventories are identified from time to time and a provision is made for such inventories as appropriate on periodic basis. jjjjj))))) LLLLLeaeaeaeaeasessessessesses The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. s a lesseseseseseeeeee s a les CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les s a les s a les The Company’s lease asset classes primarily comprise of lease for land and building. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset. The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets as below: iiiii))))) RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the underlying assets (i.e. 30 and 60 years) If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. iiiiiiiiii))))) LLLLLeaeaeaeaease Lse Lse Lse Lse Liabiabiabiabiabilililililitititititiesiesiesiesies 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. 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 Pearl Global Industries Limited Annual Report 2020-21 179 Notes to standalone financial statements for the year ended March 31, 2021 the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Company’s lease liabilities are included in other current and non- current financial liabilities. ses of lowwwww-----vvvvvaaaaalllllue aue aue aue aue assssssetsetsetsetsetsssss ses of lo ses of lo nd lea nd lea ses a ses a iiiiiiiiiiiiiii))))) ShoShoShoShoShorrrrrttttt-----ttttteeeeerrrrrm leam leam leam leam leases a nd leases of lo ses and lea ses of lo nd lea ses a 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. s a lessososososorrrrr s a les s a les CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as a les s a les Leases for which the Company is a lessor is classified as finance or operating lease. Leases in which the Company 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. k)k)k)k)k) EEEEEmmmmmppppplololololoyeyeyeyeyeeeeee'''''s bs bs bs bs beeeeenefit nefitsssss nefit nefit nefit ShoShoShoShoShorrrrrt tt tt tt tt teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefitsssss: : : : : All employee benefits nefit nefit nefit expected to be settled wholly within twelve months of rendering the service are classified as short-term employee benefits. When an employee has rendered service to the Company during an accounting period, the Company recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense unless another Ind AS requires or permits the inclusion of the benefits in the cost of an asset. Benefits such as salaries, wages and short-term compensated absences, bonus and ex-gratia etc. are recognised in statement of profit and loss in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid after deducting any amount already paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. If the amount already paid exceeds the undiscounted amount of the benefits, the Company recognises that excess as an asset / prepaid expense to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund. DDDDDefiefiefiefiefinenenenened cd cd cd cd cooooonnnnntttttrrrrribuibuibuibuibutttttioioioioion pn pn pn pn plllllaaaaannnnn A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a statutory authority and will have no legal or constructive obligation to pay further amounts. Retirement benefits in the form of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund Scheme are defined contribution plans. The contributions paid/payable to government administered respective funds are recognised as an expense in the Statement of Profit and loss during the period in which the employee renders the related service. DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p nefit plllllaaaaannnnn nefit 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 180 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 nefit nefit OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit 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. lllll))))) PPPPPrrrrrovovovovovisioisioisioisioisionnnnnsssss GGGGGeeeeenenenenenerrrrraaaaalllll Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. The unwinding of discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed. mmmmm))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss A financial instrument is a contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. (((((iiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea nd mea IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd mea A financial asset is initially recognised at fair value. In case of financial assets which are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in the statement of profit and loss. In other cases, the transaction cost are attributed to the acquisition value of the financial asset. t measssssuuuuurrrrreeeeemememememennnnnttttt t mea t mea SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t mea For purposes of subsequent measurement, financial assets are classified in three categories: - - - Financial Asset carried at amortised cost Financial Asset at fair value through other comprehensive income (FVTOCI) Financial Asset at fair value through profit and loss (FVTPL) set caaaaarrrrrrrrrrieieieieied ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt set c FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset c set c set c A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. ue tue thhhhhrrrrro uo uo uo uo uggggg h ot FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset a h ot h ot h oth eh eh eh eh errrrr set a set a set at ft ft ft ft faaaaa iiiiir vr vr vr vr vaaaaa lllllue t ue tue t h ot set a cccccooooommmmmppppprrrrreheeheeheeheehennnnnsivsivsivsivsive ie ie ie ie incncncncncooooome (Fme (Fme (Fme (Fme (FVVVVVTTTTTOOOOOCCCCCI)I)I)I)I) A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling Pearl Global Industries Limited Annual Report 2020-21 181 Notes to standalone financial statements for the year ended March 31, 2021 financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. nd lossssss nd los nd los ofit a set at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllue tue tue tue tue thhhhhrrrrrououououougggggh ph ph ph ph prrrrrofit a ofit a set a FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al asssssset a set a ofit and los nd los ofit a set a (F(F(F(F(FVVVVVTTTTTPPPPPL)L)L)L)L) A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the Company’s Balance Sheet) when: (i) The contractual rights to receive cash flows from the asset has expired, or (ii) The Company has transferred its contractual rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. (((((iiiiiiiiii))))) FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililitititititiesiesiesiesies classified as held for trading, or it is a derivative or it is designated as such as initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the Statement of Profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense is recognised in the Statement of Profit and loss. DDDDDeeeee-----rrrrreeeeecccccooooogggggnnnnnitititititioioioioionnnnn A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de- recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. g of finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss g of fi g of fi (((((iiiiiiiiiiiiiii))))) OffOffOffOffOffsetsetsetsetsettttttiiiiinnnnng of fi g of fi Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. IIIIInnnnnitititititiaiaiaiaial rl rl rl rl reeeeecccccooooogggggnnnnnitititititioioioioion an an an an and mea nd measssssuuuuurrrrreeeeemememememennnnnttttt nd mea nd mea nd mea (((((iv)iv)iv)iv)iv) DDDDDeeeeerrrrrivivivivivaaaaatttttivivivivive fie fie fie fie finnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss Financial liabilities are classified, at initial recognition, 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. SSSSSubseubseubseubseubseqqqqqueueueueuennnnnt mea t measssssuuuuurrrrreeeeemememememennnnnttttt t mea t mea t mea For purposes of subsequent measurement, financial liabilities are classified in two categories: - - Financial liabilities at amortised cost Financial liabilities at fair value through profit and loss (FVTPL) A financial liability is classified as at FVTPL if it is Till March 31, 2019, the Company used derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instruments were initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss. (v)(v)(v)(v)(v) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg With effect from April 2019, the Company adopted Hedge Accounting.The derivatives that are designated as hedging instrument under Ind AS 109 to mitigate risk arising out of foreign currency 182 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 Company uses Forward contracts (Hedging Instrument) for the purpose of hedging of Highly probable Sales Transactions (Hedged item). The hedge instruments are designated and documented as hedges at the inception of the contract. The effectiveness of hedge instruments is assessed and measured at inception and on an ongoing basis. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in OCI, e.g., cash flow hedging reserve and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the statement of profit and loss. The amount accumulated is retained in cash flow hedge reserve and reclassified to profit or loss in the same period or periods during which the hedged item affects the statement of profit and loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument is terminated or exercised prior to its maturity/ contractual term, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is reclassified to the Statement of Profit and Loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified immediately in the statement of profit and loss. nnnnn))))) IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of fi t of fi t of fi t of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of fi The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increases in credit risk. Expected credit loss is the weighted average of the difference between all contractual cash flows that are due to the Company in accordance with the contracts and all the cash flows that the Company expects to receive, discounted at original effective interest rate with the respective risk of defaults occuring as the weights. ooooo))))) t of nonnnnn-fi-fi-fi-fi-finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsetsssss t of no IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of no t of no t of no The carrying amounts of the Company’s non-financial assets, other than deferred tax assets, are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit (‘CGU’) is the greater of its value in use or its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing , assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (‘CGU’). An impairment loss is recognized, if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount and is recognised in statement of profit and loss. Impairment losses recognised in prior periods are assessed at end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. ue measssssuuuuurrrrreeeeemememememennnnnttttt ue mea ppppp))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue mea ue mea ue mea Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (a) In the principal market for the asset or liability, or (b) In the absence of a principal market, in the most advantageous market for the asset or liability Pearl Global Industries Limited Annual Report 2020-21 183 Notes to standalone financial statements for the year ended March 31, 2021 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. qqqqq))))) TTTTTaaaaaxxxxxeseseseses CCCCCuuuuurrrrrrrrrreeeeennnnnt it it it it incncncncncooooome tme tme tme tme taaaaaxxxxx Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income (OCI) or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Current tax assets are offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the recognised amounts and there is an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously. DDDDDefeefeefeefeeferrrrrrrrrreeeeed td td td td taaaaaxxxxx Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Tax relating to items recognized directly in equity/other comprehensive income is recognized in respective head and not in the statement of profit & loss. The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). MMMMMiiiiinnnnniiiiimmmmmuuuuum Am Am Am Am Alllllttttteeeeerrrrrnnnnnaaaaattttte Te Te Te Te Taaaaaxxxxx Minimum Alternate Tax (MAT) paid in the year is charged to the Statement of Profit and Loss as current tax.The Company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which Company recognises MAT credit as an asset in accordance with the 184 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and shown as "MAT Credit Entitlement". The Company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period. In accordance with Ind AS 12 Company is grouping MAT credit entitlement with Deferred Tax Assets/Liabilities (Net). r)r)r)r)r) ies ies ubsidiaiaiaiaiarrrrries ubsid ubsid IIIIInnnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid ies ies ubsid Investment in subsidiaries There is an option to measure investments in subsidiaries at cost in accordance with Ind AS 27 at either: 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 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. (a) Fair value on date of transition; or ies a ies a ies and cnd cnd cnd cnd cooooonnnnntttttiiiiinnnnngggggeeeeennnnnt at at at at assssssetsetsetsetsetsssss v)v)v)v)v) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities a ies a (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. sh ash and cnd cnd cnd cnd caaaaash e sh ash a s)s)s)s)s) CCCCCaaaaash a sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss sh esh e sh e 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 Company’s cash management. t)t)t)t)t) EEEEEaaaaarrrrrnnnnniiiiinnnnngggggs ps ps ps ps peeeeer shr shr shr shr shaaaaarrrrre (Ee (Ee (Ee (Ee (EPPPPPS)S)S)S)S) 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 A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. ch & devvvvveloeloeloeloelopppppmememememennnnnt ct ct ct ct cososososostttttsssss ch & de esearrrrrch & de ch & de esea w)w)w)w)w) RRRRResea esea ch & de esea Research and development costs that are in nature of tangible assets and are expected to generate probable future economic benefits are capitalised as tangible assets. Revenue expenditure on research and development is charged to the statement of profit and loss in the year in which it is incurred. x)x)x)x)x) ExExExExExccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmmsssss When items of income and expense within statement of profit and loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the period, the nature and amount of such material items are disclosed seperately as exceptional items. Pearl Global Industries Limited Annual Report 2020-21 185 Notes to standalone financial statements for the year ended March 31, 2021 E 4 : PROOOOOPPPPPEEEEERRRRRTTTTTYYYYY, P, P, P, P, PLLLLLAAAAANNNNNTTTTT E 4 : PR NONONONONOTTTTTE 4 : PR E 4 : PR E 4 : PR AAAAANNNNND EQD EQD EQD EQD EQUUUUUIIIIIPMPMPMPMPMEEEEENNNNNTTTTT LaLaLaLaLandndndndnd----- frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss seholdldldldld seho seho lealealealealeaseho seho LLLLLeaeaeaeaeaseho seholdldldldld seho seho seho iiiiimmmmmppppprrrrrovovovovoveeeeemememememennnnntttttsssss PPPPPlllllaaaaannnnnt at at at at andndndndnd E qE qE qE qE quuuuuiiiiipppppm em em em em ennnnnttttt FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee VVVVVehehehehehicles icles icles icles icles nd Fnd Fixixixixixuuuuurrrrreseseseses nd Fnd F aaaaand F TTTTTotototototaaaaalllll (Amount in ` Lakh, unless otherwise stated) GrGrGrGrGrosososososs cs cs cs cs caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt (((((AAAAAt Dt Dt Dt Dt Deeeeeeeeeemememememed cd cd cd cd cososososost)t)t)t)t) As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 2019 il 01, 2019 il 01, 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 Add: Additions made during the year Less: Disposals/adjustments during the year ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed de d deppppprrrrreeeeeciaciaciaciaciatttttioioioioion/an/an/an/an/am om om om om orrrrrtttttizaizaizaizaizatttttioioioioionnnnn d de d de d de 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 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 Add: Depreciation charge for the year Less: Disposals/adjustments during the year ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 et caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt et c et c NNNNNet c et c ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 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 - - 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 47.74 532.57 - 580.32 580.32 580.32 580.32 580.32 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 0.49 - 3,930.54 3,930.54 3,930.54 3,930.54 3,930.54 ----- - - ----- - - ----- 1.021.02 1.021.02 1.02 0.34 - 1.361.36 1.361.36 1.36 1.96 - 3.323.32 3.323.32 3.32 403.88 403.88 403.88 403.88 403.88 155.11 - 558.99 558.99 558.99 558.99 558.99 155.17 - 714.16 714.16 714.16 714.16 714.16 448.57 448.57 448.57 448.57 448.57 109.41 - 557.98 557.98 557.98 557.98 557.98 20.89 22.60 601.47 601.47 601.47 601.47 601.47 115.28 115.28 115.28 115.28 115.28 75.07 - 190.35 190.35 190.35 190.35 190.35 87.38 9.69 287.42 287.42 287.42 287.42 287.42 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 8,961.64 235.57 (11.60) 9,185.61 9,185.61 9,185.61 9,185.61 9,185.61 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 2,768.67 718.48 (2.65) 3,484.50 3,484.50 3,484.50 3,484.50 3,484.50 16,263.53 16,263.53 985.05 985.05 802.13 802.13 985.05 16,263.53 16,263.53 802.13 985.05 16,263.53 985.05 802.13 802.13 1,424.90 262.39 224.53 246.58 159.38 - 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 1,026.66 882.77 72.96 20.27 (41.29) (30.29) - 18,294.32 18,294.32 1,119.73 1,119.73 1,046.93 1,046.93 18,294.32 1,119.73 18,294.32 1,046.93 1,119.73 18,294.32 1,119.73 1,046.93 1,046.93 268.85 268.85 268.85 268.85 268.85 100.10 - 368.95 368.95 368.95 368.95 368.95 93.54 - 462.48 462.48 462.48 462.48 462.48 321.41 321.41 321.41 321.41 321.41 129.96 71.21 380.16 380.16 380.16 380.16 380.16 139.02 (25.32) 493.86 493.86 493.86 493.86 493.86 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 1,195.54 (18.28) 5,445.74 5,445.74 5,445.74 5,445.74 5,445.74 1,829.72 1,829.72 577.00 46.38 3,216.38 3,371.06 314.05 367.63 5,701.12 6,192.97 584.45 657.71 12,848.58 12,848.58 12,848.58 625.87 12,848.58 12,848.58 13,173.38 13,173.38 13,173.38 707.90 13,173.38 13,173.38 a) The above assets includes Gross block of land of ` 78.55 (March 31, 2020: ` 78.55) situated at Narshingpur, Tehsil District Gurgaon (Haryana). The Company has executed a colloboration agreement with DLF Retail Developers Limited on November 30, 2007 for construction of a commercial project on part- land amounting to ` 42.50 (March 31, 2020: ` 42.50). However, as certified by the Management, the work has not started during the financial year 2020-21 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: ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 Gross carrying amount Accumulated depreciation 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 Gross carrying amount Accumulated depreciation NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt PPPPPlllllaaaaannnnnt at at at at andndndndnd EqEqEqEqEquuuuuiiiiipppppmememememennnnnttttt FFFFFuuuuurrrrrnnnnnititititituuuuurrrrreeeee aaaaand Fnd Fnd Fnd Fnd Fixixixixixuuuuurrrrreseseseses 27.77 18.96 8.818.818.818.818.81 27.77 16.59 11.18 11.18 11.18 11.18 11.18 21.22 15.24 5.985.985.985.985.98 21.22 12.21 9.019.019.019.019.01 TTTTTotototototaaaaalllll 48.99 34.20 14.79 14.79 14.79 14.79 14.79 48.99 28.80 20.19 20.19 20.19 20.19 20.19 186 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 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, 2019 il 01, 2019 As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 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 Add: Additions during the year Less: Disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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, 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 Add: Depreciation charge for the year Less: Disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 41.63 --------------------------------------------------------- 41.63 41.63 41.63 41.63 41.63 ======================== 232.50 --------------------------------------------------------- 232.50 232.50 232.50 232.50 232.50 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 41.63 - ---------------------------------------------------------- 41.63 41.63 41.63 41.63 41.63 ---------------------------------------------------------- 176.05 56.45 ---------------------------------------------------------- 232.50 232.50 232.50 232.50 232.50 ---------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) LaLaLaLaLandndndndnd frfrfrfrfreeeeeehoehoehoehoeholdldldldld LaLaLaLaLandndndndnd seholdldldldld seho seho lealealealealeaseho seho BBBBBuuuuuildildildildildiiiiinnnnnggggg TTTTTotototototaaaaalllll 3,086.80 49.12 - ---------------------------------------------------------- 3,135.92 3,135.92 3,135.92 3,135.92 3,135.92 103.45 1,401.01 ---------------------------------------------------------- 1,838.36 1,838.36 1,838.36 1,838.36 1,838.36 ---------------------------------------------------------- - - - ---------------------------------------------------------- ----- ----- - ---------------------------------------------------------- ----- ---------------------------------------------------------- 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 4,580.71 228.52 197.49 ---------------------------------------------------------- 4,611.74 4,611.74 4,611.74 4,611.74 4,611.74 ---------------------------------------------------------- 247.98 85.75 - ---------------------------------------------------------- 333.73 333.73 333.73 333.73 333.73 86.77 14.64 ---------------------------------------------------------- 405.86 405.86 405.86 405.86 405.86 ---------------------------------------------------------- 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 7,726.99 331.97 1,598.50 ---------------------------------------------------------- 6,460.46 6,460.46 6,460.46 6,460.46 6,460.46 ---------------------------------------------------------- 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 86.77 86.77 86.77 86.77 86.77 14.64 14.64 14.64 14.64 14.64 ---------------------------------------------------------- 405.86 405.86 405.86 405.86 405.86 ---------------------------------------------------------- 1,838.36 3,135.92 10.36 10.36 4,205.88 4,246.98 6,054.60 6,054.60 6,054.60 6,054.60 6,054.60 7,393.26 7,393.26 7,393.26 7,393.26 7,393.26 Pearl Global Industries Limited Annual Report 2020-21 187 Notes to standalone financial statements for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (a) AAAAAmoumoumoumoumounnnnnttttts rs rs rs rs reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in Sn Sn Sn Sn Stttttaaaaattttteeeeemememememennnnnt of t of t of t of t of ofit and Lnd Lnd Lnd Lnd Losososososs fos fos fos fos for ir ir ir ir innnnnvvvvvesesesesestttttmememememennnnnt pt pt pt pt prrrrrooooopppppeeeeerrrrrtttttiesiesiesiesies ofit a PPPPPrrrrrofit a ofit a ofit a Rental Income Direct operating expenses of property that generated rental income Direct operating expenses of property that did not generated rental income Income arising from Investment properties before charging depreciation 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 770.91 56.44 8.44 706.03 86.77 --------------------------------------------------------- 619.26 619.26 619.26 619.26 619.26 --------------------------------------------------------- 10,259.00 10,259.00 10,259.00 10,259.00 10,259.00 --------------------------------------------------------- 980.53 65.88 14.23 900.42 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 --------------------------------------------------------- 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, 2021. (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, 2019 il 01, 2019 As aAs aAs aAs aAs at At At At At Appppprrrrril 01, 2019 il 01, 2019 il 01, 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 Add: Additions during the year Less: Disposals / adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 AAAAAccccccucucucucummmmmuuuuulllllaaaaattttteeeeed ad ad ad ad amomomomomorrrrrtttttisaisaisaisaisatttttioioioioionnnnn 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: 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 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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 NNNNNet cet cet cet cet caaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 CoCoCoCoCommmmmpupupupuputtttteeeeerrrrr SSSSSofofofofoftttttwwwwwaaaaarrrrreeeee 247.54 17.57 - --------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 9.20 - --------------------------------------------------------- 274.31 274.31 274.31 274.31 274.31 --------------------------------------------------------- 132.60 47.75 - --------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 39.89 - --------------------------------------------------------- 220.24 220.24 220.24 220.24 220.24 --------------------------------------------------------- 54.07 54.07 54.07 54.07 54.07 84.76 84.76 84.76 84.76 84.76 TTTTTotototototaaaaalllll 247.54 17.57 - --------------------------------------------------------- 265.11 265.11 265.11 265.11 265.11 9.20 - --------------------------------------------------------- 274.31 274.31 274.31 274.31 274.31 --------------------------------------------------------- 132.60 47.75 - --------------------------------------------------------- 180.35 180.35 180.35 180.35 180.35 39.89 - --------------------------------------------------------- 220.24 220.24 220.24 220.24 220.24 --------------------------------------------------------- 54.07 54.07 54.07 54.07 54.07 84.76 84.76 84.76 84.76 84.76 188 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 Fareast Limited, Hong Kong 535,000 (March 31, 2020: 5,35,000) Equity Shares of USD 1 Each fully paid up Pearl Apparel Fashions Limited, India 27,639,145 (March 31, 2020 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, 2020: 16,10,000) Equity Shares of USD 1 each fully paid up Pearl Global Kausal Vikas Limited 50,000 (March 31, 2020: 50,000) Equity Shares of ` 10 each fully paid up Norp Knit Industries Limited, Bangladesh 3,381,211 (March 31, 2020: 3,381,211) Equity Shares of Taka 100 Each fully paid up SBUYS E-Commerce Limited 10,000 (March 31, 2020: 10,000) Equity Shares of ` 10 Each fully paid up 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 y - (y - (UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd))))) y - (y - ( 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, 2020: 3,000,000) Preference Shares of ` 10 each fully paid up Less: Provision for diminution in value of Investments 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 2,797.29 2,797.29 1,648.35 1,648.35 (1,648.35) --------------------------------------------------------- - (1,644.44) --------------------------------------------------------- 3.91 6,291.36 5.00 2,213.35 1.00 6,152.32 5.00 2,468.53 1.00 300.00 300.00 (30.00) --------------------------------------------------------- - --------------------------------------------------------- 270.00 --------------------------------------------------------- 11,578.00 11,578.00 11,578.00 11,578.00 11,578.00 ======================== 13,256.35 1,678.35 11,578.00 300.00 --------------------------------------------------------- 11,728.05 11,728.05 11,728.05 11,728.05 11,728.05 ======================== 13,372.49 1,644.44 11,728.05 Pearl Global Industries Limited Annual Report 2020-21 189 Notes to standalone financial statements for the year ended March 31, 2021 (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 SSSSSubsid ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid ubsid ubsid Pearl Apparel Fashions Limited Pearl Global Kaushal Vikas Limited Pearl Global Fareast Limited Pearl Global (HK) Limited India India Hong Kong Hong Kong Norp Knit Industries Limited Bangladesh SBUYS E-Commerce Limiited India Trading of garments Skill Development Trading of garments Manufacturing and trading of garments Manufacturing and trading of garments Online Trading of garments (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, 2021 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2020 ch 31, 2020 ch 31, 2021 100.00 100.00 100.00 100.00 99.99 100.00 100.00 100.00 100.00 100.00 99.99 100.00 c) Investment in equity shares of subsidiary includes Income from Corporate Guarantee receivable for the following Companies:- (Amount in ` Lakh, unless otherwise stated) he Commmmmpppppaaaaannnnnyyyyy he Co he Co me of t me of t NNNNNaaaaame of t me of the Co he Co me of t As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 TTTTTotototototaaaaalllll Pearl Global (HK) Limited, Hong Kong Norp Knit Industries Limited, Bangladesh 220.12 266.89 --------------------------------------------------------- 487.01 487.01 487.01 487.01 487.01 ======================== d) During the period ended December 31, 2020, Pearl Apparel Fashions Limited, a wholly owned subsidiary of the Company has gone into voluntary liquidation and appointed the official liquidator in October, 2020. In effect of above resolution, the Company has impaired its investment (Equity Instrument and Preference Equipment) in aforesaid subsidiary and recognised the same at its recoverable. 359.16 11.71 --------------------------------------------------------- 370.87 370.87 370.87 370.87 370.87 ======================== e) The number of units and number of shares in note above represents absolute numbers. 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, 2020: 50,000) Equity Shares of ` 10 each fully paid up B.B.B.B.B. IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in Gn Gn Gn Gn Govovovovoveeeeerrrrrnnnnnmememememennnnnt set set set set secucucucucurrrrrititititities - ies - ies - ies -UUUUUnqnqnqnqnquotuotuotuotuoteeeeeddddd 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 TTTTTotototototaaaaal (l (l (l (l (A + B) A + B) A + B) A + B) A + B) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 335.00 --------------------------------------------------------- 335.00 335.00 335.00 335.00 335.00 --------------------------------------------------------- 141.00 --------------------------------------------------------- 141.00 141.00 141.00 141.00 141.00 --------------------------------------------------------- 1.63 --------------------------------------------------------- 1.631.631.631.631.63 --------------------------------------------------------- 336.63 336.63 336.63 336.63 336.63 ======================== 1.63 --------------------------------------------------------- 1.631.631.631.631.63 --------------------------------------------------------- 142.63 142.63 142.63 142.63 142.63 ======================== 190 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 (((((CCCCCooooonnnnntttttddddd.).).).).) TS OTHHHHHEEEEERRRRRSSSSS TS OT E 9 : INVVVVVEEEEESSSSSTTTTTMMMMMEEEEENNNNNTS OT TS OT E 9 : IN NONONONONOTTTTTE 9 : IN E 9 : IN TS OT E 9 : IN CCCCCuuuuurrrrrrrrrreeeeennnnnttttt C.C.C.C.C. nds - (Quotuotuotuotuoteeeeeddddd))))) nds - (Q IIIIInnnnnvvvvvesesesesestttttmememememennnnnttttts is is is is in mn mn mn mn muuuuutttttuuuuuaaaaal fl fl fl fl fuuuuunds - (Q nds - (Q nds - (Q 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 nd lossssss nd los nd los ofit 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, 2020: 536,068.057 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, 2020: 1,223,214.3850 units) IDFC Banking and PSU debt fund direct plan - growth 1,267,806.9250 units of Face Value of ` 10 per unit (March 31, 2020: 1,267,806.9250 units) a) Aggregate book value of quoted investments Aggregate market value of quoted investments Aggregate value of unquoted investments Aggregate value of unquoted investments (net of impairment) b) The number of units and number of shares in note above represents absolute numbers. (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 260.63 237.83 246.01 227.10 247.74 227.75 --------------------------------------------------------- 754.38 754.38 754.38 754.38 754.38 ======================== 1,089.38 1,089.38 1.63 1.63 --------------------------------------------------------- 692.68 692.68 692.68 692.68 692.68 ======================== 833.68 833.68 1.63 1.63 E10 : LOAAAAANSNSNSNSNS E10 : LO E10 : LO NONONONONOTTTTTE10 : LO E10 : LO (Unsecured, considered good unless otherwise stated) Loans to employees Loans to related parties (Refer Note No. 46) (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 7.21 485.10 ---------------------------------------------------------- 492.31 492.31 492.31 492.31 492.31 ======================== 7.63 497.57 ---------------------------------------------------------- 505.20 505.20 505.20 505.20 505.20 ======================== 23.84 300.00 ---------------------------------------------------------- 323.84 323.84 323.84 323.84 323.84 ======================== 25.78 300.00 ---------------------------------------------------------- 325.78 325.78 325.78 325.78 325.78 ======================== a) The Company has no loans which have significant increase in credit risk and loans which are credit impaired. (Refer Note No. 43) Pearl Global Industries Limited Annual Report 2020-21 191 Notes to standalone financial statements for the year ended March 31, 2021 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 (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) Term deposits and others Loan to related parties (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 706.06 750.21 28.56 3.11 - 45.54 0.16 140.75 45.54 14.59 168.75 - 50.57 29.89 6.71 - ---------------------------------------------------------- 754.72 754.72 754.72 754.72 754.72 ======================== ---------------------------------------------------------- 936.66 936.66 936.66 936.66 936.66 ======================== ---------------------------------------------------------- 211.91 211.91 211.91 211.91 211.91 ======================== ---------------------------------------------------------- 87.17 87.17 87.17 87.17 87.17 ======================== 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 year ended March 31, 2021 and March 31, 2020 are as under: 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 to 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 - 10.94 (1,007.86) --------------------------------------------------------- (996.92) (996.92) (996.92) (996.92) (996.92) ======================== 421.00 26.79 141.83 --------------------------------------------------------- 589.62 589.62 589.62 589.62 589.62 ======================== As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (26.31) (342.72) --------------------------------------------------------- (369.03) (369.03) (369.03) (369.03) (369.03) ======================== (47.23) 346.57 --------------------------------------------------------- 299.34 299.34 299.34 299.34 299.34 ======================== 192 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 - --------------------------------------------------------- ----- ======================== 102.38 --------------------------------------------------------- 102.38 102.38 102.38 102.38 102.38 ======================== 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 ch 31, 2021 ch 31, 2021 ic taaaaax rx rx rx rx raaaaattttte foe foe foe foe for Mr Mr Mr Mr Maaaaarrrrrch 31, 2021 n of t n of t a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of t ic t ic t ch 31, 2021 he ac ch 31, 2021 n of t ic t ch 31, 2020. ch 31, 2020. aaaaand Mnd Mnd Mnd Mnd Maaaaarrrrrch 31, 2020. ch 31, 2020. ch 31, 2020. 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 31.20% (March 31, 2020: 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 31.20% (March 31, 2020: 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 (919.52) (286.89) 10.94 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 1,090.52 381.07 26.79 32.58 (800.39) 46.83 --------------------------------------------------------- (996.92) (996.92) --------------------------------------------------------- 223.61 (137.34) 95.50 --------------------------------------------------------- 589.62 589.62 --------------------------------------------------------- (Amount in ` Lakh, unless otherwise stated) e sheetetetetet e she BBBBBaaaaalllllaaaaancncncncnce she e she e she As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 395.70 219.67 764.67 1,003.94 3.85 100.85 --------------------------------------------------------- 2,488.68 2,488.68 2,488.68 2,488.68 2,488.68 --------------------------------------------------------- 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 --------------------------------------------------------- Pearl Global Industries Limited Annual Report 2020-21 193 Notes to standalone financial statements for the year ended March 31, 2021 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 PPPPPrrrrrooooopppppeeeeerrrrrtttttyyyyy, p, p, p, p, plllllaaaaannnnnt at at at at and end end end end eqqqqquuuuuiiiiipppppmememememennnnnttttt Right to use assets Fair valuation of mutual fund Borrowing (EIR) Others MAT Credit Entitlement ies) ies) et deferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets/(s/(s/(s/(s/(llllliabiabiabiabiabilililililititititities) et defe et defe NNNNNet defe ies) ies) et defe et deferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets/(s/(s/(s/(s/(llllliabiabiabiabiabilililililititititities) et defe et defe MMMMMovovovovoveeeeemememememennnnnt bt bt bt bt betetetetetwwwwweeeeeeeeeen Nn Nn Nn Nn Net defe ies) ies) ies) et defe ies) (B) (C) (A-B+C) (Amount in ` Lakh, unless otherwise stated) e sheetetetetet e she BBBBBaaaaalllllaaaaancncncncnce she e she e she As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 1,227.05 1,227.05 1,227.05 1,227.05 1,227.05 905.82 17.55 4.06 20.51 --------------------------------------------------------- 2,175.00 2,175.00 2,175.00 2,175.00 2,175.00 --------------------------------------------------------- 76.85 --------------------------------------------------------- 390.53 390.53 390.53 390.53 390.53 --------------------------------------------------------- (638.84) (638.84) (638.84) (638.84) (638.84) 1,434.36 1,434.36 1,434.36 1,434.36 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) --------------------------------------------------------- (259.88) (259.88) (259.88) (259.88) (259.88) ies) is reeeeeppppprrrrreseeseeseeseesennnnnttttteeeeed bd bd bd bd by defe se/incncncncncooooome ame ame ame ame as us us us us undendendendenderrrrr::::: n net defe n net defe TTTTThe Mhe Mhe Mhe Mhe Movovovovoveeeeemememememennnnnt bt bt bt bt betetetetetwwwwweeeeeeeeeen net defe ies) is r ies) is r se/i se/i n net deferrrrrrrrrreeeeed td td td td taaaaax ax ax ax ax assssssetsetsetsetsets/(s/(s/(s/(s/(llllliabiabiabiabiabilililililititititities) is r y deferrrrrrrrrreeeeed td td td td taaaaax exx exx exx exx expppppeeeeennnnnse/i y defe y defe n net defe ies) is r se/i y defe (Amount in ` Lakh, unless otherwise stated) 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 follllllololololowwwwwiiiiinnnnng :g :g :g :g : 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 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) Others NNNNNet defe et defe et defe et deferrrrrrrrrreeeeed td td td td taaaaax chx chx chx chx chaaaaargrgrgrgrgeeeee et defe The above net deferred tax 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 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 (46.55) 21.78 747.60 (61.77) (342.72) (66.35) --------------------------------------------------------- 251.99 251.99 251.99 251.99 251.99 (207.31) (7.74) 9.62 (4.40) (177.04) --------------------------------------------------------- (386.86) (386.86) (386.86) (386.86) (386.86) --------------------------------------------------------- (638.85) (638.85) (638.85) (638.85) (638.85) ======================== (1,007.86) 369.03 - 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 --------------------------------------------------------- (259.88) (259.88) (259.88) (259.88) (259.88) ======================== 141.83 (299.35) (102.38) 194 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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. 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, 2020 : ` 1,288.03 Lakh) (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 556.75 469.39 --------------------------------------------------------- 556.75 556.75 556.75 556.75 556.75 ======================== --------------------------------------------------------- 469.39 469.39 469.39 469.39 469.39 ======================== E 14 : OTHHHHHEEEEER AR AR AR AR ASSSSSSSSSSEEEEETSTSTSTSTS E 14 : OT E 14 : OT NONONONONOTTTTTE 14 : OT E 14 : OT (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 (Unsecured, considered good, unless otherwise stated) Capital advances (Refer Note No. 45b) 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. 46) Advances to suppliers Other receivables (Refer Note ‘a’ below) - 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 ======================== a) Other Receivables of ` 2,538.77 as at March 31, 2021 includes enhanced compensation of ` 2,335.15 receivable by the Company from National Highways Authority of India pursuant to land acquisition by the Central Government under National Highways Act, 1956. (Refer Note No. 36) 29.03 15.03 22.74 -22.74 1.84 7.71 - - - - ---------------------------------------------------------- 53.60 53.60 53.60 53.60 53.60 ======================== - 2,103.76 - - 3.13 402.14 1,215.59 116.98 462.32 2,538.77 ---------------------------------------------------------- 6,842.69 6,842.69 6,842.69 6,842.69 6,842.69 ======================== 95.46 91.80 22.74 -22.74 299.10 13.04 - - - - ---------------------------------------------------------- 499.40 499.40 499.40 499.40 499.40 ======================== Pearl Global Industries Limited Annual Report 2020-21 195 Notes to standalone financial statements for the year ended March 31, 2021 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 E 16 : TRAAAAADDDDDE RE RE RE RE RECECECECECEEEEEIIIIIVVVVVAAAAABBBBBLLLLLEEEEESSSSS E 16 : TR E 16 : TR NONONONONOTTTTTE 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 he moveeeeemememememennnnnt it it it it in tn tn tn tn the ahe ahe ahe ahe allllllololololowwwwwaaaaancncncncnce foe foe foe foe for exr exr exr exr expppppeeeeectctctctcteeeeed cd cd cd cd crrrrreeeeedddddit los s is as fos fos fos fos follllllololololowswswswsws::::: s is a s is a it los it los he mov he mov a)a)a)a)a) TTTTThe mov it loss is a s is a it los he mov BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at bt bt bt bt beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t he yearrrrr he yea he yea g of t g 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 4,905.89 19.88 5,703.23 2,412.60 166.84 60.68 --------------------------------------------------------- 13,269.13 13,269.13 13,269.13 13,269.13 13,269.13 ======================== 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 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 - 14,521.72 - 656.18 (656.18) --------------------------------------------------------- 14,521.72 14,521.72 14,521.72 14,521.72 14,521.72 --------------------------------------------------------- 377.32 377.32 377.32 377.32 377.32 278.86 - --------------------------------------------------------- 656.18 656.18 656.18 656.18 656.18 ======================== - 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 ======================== b) Trade receivables are generally on credit terms ranging between 0-180 days (March 31, 2020: 45-60 days). c) The company’s exposure to credit and currency risk, and loss allowances related to trade receivables are disclosed in note 43. d) The above includes amount due from related parties is ` 2,008.11 (March 31, 2020: ` 2,125.58) (Refer note no. 46). e) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other persons. 196 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 Balances with banks: Current account - - Deposits with original maturity of less than 3 months Cash on hand Cheque/drafts on hand 4,338.60 177.60 3.90 79.40 --------------------------------------------------------- 4,599.50 4,599.50 4,599.50 4,599.50 4,599.50 ======================== For the purpose of the statement of cash flow, the cash and cash equivalent are same given above. a) 1,806.62 104.23 13.54 135.38 --------------------------------------------------------- 2,059.77 2,059.77 2,059.77 2,059.77 2,059.77 ======================== E 18 : BANNNNNK BK BK BK BK BAAAAALLLLLAAAAANNNNNCCCCCEEEEES OS OS OS OS OTTTTTHHHHHEEEEER TR TR TR TR THHHHHAAAAANNNNN E 18 : BA E 18 : BA NONONONONOTTTTTE 18 : BA E 18 : BA CCCCCAAAAASSSSSH AH AH AH AH ANNNNND CD CD CD CD CAAAAASSSSSH EQH EQH EQH EQH EQUUUUUIIIIIVVVVVAAAAALLLLLEEEEENNNNNTSTSTSTSTS Earmarked balances with banks (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 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 (Refer Note a below) Balance with bank (Considered doubtful) Less: Loss Allowance Less: Amount disclosed under “Other Financial Assets” (Refer Note No.11) a) Fixed Deposits pledged as security with various banks (refer note no. 21) 29.75 1,078.40 45.54 0.03 (0.03) --------------------------------------------------------- 1,153.69 1,153.69 1,153.69 1,153.69 1,153.69 45.54 --------------------------------------------------------- 1,108.15 1,108.15 1,108.15 1,108.15 1,108.15 ======================== 665.02 665.02 665.02 665.02 665.02 31.85 899.76 45.54 0.03 (0.03) --------------------------------------------------------- 977.15 977.15 977.15 977.15 977.15 45.54 --------------------------------------------------------- 931.61 931.61 931.61 931.61 931.61 ======================== 134.03 134.03 134.03 134.03 134.03 E 19 : SHAAAAARRRRRE CAE CAE CAE CAE CAPPPPPIIIIITTTTTAAAAALLLLL E 19 : SH NONONONONOTTTTTE 19 : SH E 19 : SH E 19 : SH AAAAAuuuuuttttthohohohohorrrrriseiseiseiseiseddddd 51,440,000* (March 31, 2020: 51,440,000) equity shares of ` 10 each 10,000* (March 31, 2020: 10,000) 4% Non Cumulative Redeemable Preference Shares of ` 10 each 3,256,000* (March 31, 2020: 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, 2020: 21,663,937) Equity Shares of ` 10 each fully paid up (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 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 ======================== Pearl Global Industries Limited Annual Report 2020-21 197 Notes to standalone financial statements for the year ended March 31, 2021 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 a)a)a)a)a) RRRRReeeeecccccoooooncilncilncilncilnciliaiaiaiaiatttttioioioioion of is n of is n of is e of ````` 10 each 10 each 10 each e of EqEqEqEqEquuuuuititititity Shy Shy Shy Shy Shaaaaarrrrre of e of 10 each 10 each e of BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at At At At At Appppprrrrril 1, 2019 il 1, 2019 il 1, 2019 il 1, 2019 il 1, 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 Changes during the year BBBBBaaaaalllllaaaaancncncncnce ae ae ae ae as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ached td td td td to eo eo eo eo eqqqqquuuuuititititity shy shy shy shy shaaaaarrrrreseseseses::::: ache ache s/ rigigigigighhhhhttttts as as as as attttttttttache s/ rs/ r s/ r bbbbb))))) TTTTTeeeeerrrrrmmmmms/ r ache NNNNNooooo. of sh . of shaaaaarrrrreseseseses . of sh . of sh . of sh --------------------------------------------------------------- 21,663,937 - --------------------------------------------------------------- 21,663,937 21,663,937 21,663,937 21,663,937 21,663,937 --------------------------------------------------------------- - --------------------------------------------------------------- 21,663,937 21,663,937 21,663,937 21,663,937 21,663,937 --------------------------------------------------------------- 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 --------------------------------------------------------------- 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. For the year ended March 31, 2021 and March 31, 2020, the Board of Directors has not proposed any dividend for distribution to shareholders. 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. g morrrrre te te te te thhhhhaaaaan 5% sh g mo g mo rs holdldldldldiiiiinnnnng mo he Commmmmpppppaaaaannnnnyyyyy rs ho rs ho ils of shaaaaarrrrrehoehoehoehoeholdeldeldeldelders ho he Co he Co n 5% shaaaaarrrrres ies ies ies ies in tn tn tn tn the Co ils of sh ils of sh ccccc))))) DDDDDetetetetetaaaaails of sh n 5% sh n 5% sh g mo rs ho he Co ils of sh n 5% 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 * Number of Shares are given in absolute numbers. E 20 : OTHHHHHEEEEER EQR EQR EQR EQR EQUUUUUIIIIITTTTTYYYYY E 20 : OT NONONONONOTTTTTE 20 : OT E 20 : OT E 20 : OT General reserve Securities premium Capital redemption reserve Amalgamation reserve Retained earnings Cash Flow Hedge Reserve (net of tax) Foreign currency translation reserve- Foreign operations ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 . of shaaaaarrrrres*es*es*es*es* . of sh . of sh NNNNNooooo. of sh . of sh 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 shaaaaarrrrres*es*es*es*es* . of sh . of sh HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % NNNNNooooo. of sh . of sh HHHHHoooooldldldldldiiiiinnnnng %g %g %g %g % 4,413,635 2,862,145 6,947,621 1,881,004 20.37 13.21 32.07 8.68 4,413,635 2,862,145 6,947,621 1,553,274 20.37 13.21 32.07 7.17 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 4,204.36 17,103.90 95.00 625.95 7,172.94 (8.49) 11.96 --------------------------------------------------------- 29,205.63 29,205.63 29,205.63 29,205.63 29,205.63 ======================== 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 ======================== 198 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 I.I.I.I.I. For Movement during the year 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 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs a)a)a)a)a) GGGGGeeeeenenenenenerrrrraaaaal rl rl rl rl reseeseeseeseeserrrrrvvvvveeeee (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 Balance as at beginning/ end of the year 4,204.36 4,204.36 Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at an specified percentage in accordance with Companies (Transfer of profits to Reserve) Rules 1975. Consequent to introduction of the Companies Act 2013, there is no such requirement to mandatorily transfer a specified percentage of the net profit to general reserve. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs bbbbb))))) SSSSSeeeeecucucucucurrrrrititititities Pies Pies Pies Pies Prrrrreeeeemmmmmiuiuiuiuiummmmm (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 Balance as at beginning/ end of the year 17,103.90 17,103.90 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. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ccccc))))) CCCCCaaaaapppppitititititaaaaal Rl Rl Rl Rl Reeeeedededededemmmmmptptptptptioioioioion Rn Rn Rn Rn Reseeseeseeseeserrrrrvvvvveeeee Balance as at beginning/ end of the year (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 95.00 95.00 This Reserve has been created at the time of business combination with companies in earlier years in accordance with the provisions of the Companies Act, 2013. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ddddd))))) AAAAAmmmmmaaaaalllllgggggaaaaammmmmaaaaatttttioioioioion Rn Rn Rn Rn Reseeseeseeseeserrrrrvvvvveeeee Balance as at beginning/ end of the year (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 625.95 625.95 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. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs e)e)e)e)e) RRRRRetetetetetaaaaaiiiiinenenenened Ed Ed Ed Ed Eaaaaarrrrrnnnnniiiiinnnnngggggsssss (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 Balance as at beginning/ end of the year 7,172.94 7,037.53 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 `400.51 (March 31, 2020 : ` 398.64) is not available for distribution. Pearl Global Industries Limited Annual Report 2020-21 199 Notes to standalone financial statements for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs fffff ))))) CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololow Hw Hw Hw Hw Heeeeedddddggggge Re Re Re Re Reseeseeseeseeserrrrrvvvvveeeee Balance as at beginning/ end of the year (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (8.49) (645.22) 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. PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ggggg ))))) FFFFFooooorrrrreigeigeigeigeign Cn Cn Cn Cn Cuuuuurrrrrrrrrreeeeencncncncncy Ty Ty Ty Ty Trrrrraaaaannnnnslslslslslaaaaatttttioioioioion Rn Rn Rn Rn Reseeseeseeseeserrrrrvvvvveeeee Balance as at beginning/ end of the year (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 11.96 - The exchange differences arising from the translation of financial statements of foreign operations is recognized in other comprehensive income and is presented within equity. 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 Vehicle loans From financials institutional (secured) - Vehicle loans Less: Amount disclosed under other financial liabilities as ‘Current maturities of long-term borrowings’ (refer note 23) (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 8,014.64 118.30 5,178.62 93.22 1,913.56 36.58 1,451.25 91.00 66.84 ---------------------------------------------------------- 8,199.78 8,199.78 8,199.78 8,199.78 8,199.78 112.39 ---------------------------------------------------------- 5,384.23 5,384.23 5,384.23 5,384.23 5,384.23 - 48.55 ---------------------------------------------------------- 1,998.68 1,998.68 1,998.68 1,998.68 1,998.68 1,998.68 38.85 ---------------------------------------------------------- 1,581.10 1,581.10 1,581.10 1,581.10 1,581.10 1,581.10 ---------------------------------------------------------- 8,199.78 8,199.78 8,199.78 8,199.78 8,199.78 ======================== ---------------------------------------------------------- 5,384.23 5,384.23 5,384.23 5,384.23 5,384.23 ======================== ---------------------------------------------------------- ----- ======================== ---------------------------------------------------------- ----- ======================== *includes loans which are carried at amortised cost e of Seeeeecucucucucurrrrrititititityyyyy: : : : : Following security details rank pari passu (first, second, exclusive or equitable as per respective sanction e of S iiiii))))) NNNNNaaaaatttttuuuuurrrrre of S e of S e of S letters) amongst different lenders under multi bank arrangement for long term borrowings: a) Hypothecation over the entire movable/ Immovable fixed assets of the Company including creation of negative lien on the assets which are unencumbered and are not proposed to be mortgaged to any of the lenders. b) Equitable mortgage over Industrial plot no. (i) 16/17, phase-6, Udyog Vihar, Gurugram, (ii) 597 and 603, RICCO Industrial Area, Bhiwadi, Rajasthan, (iii) 751, Pace City-II, Sector 37, Gurugram, (iv) Land & Building located at Survey No. 262A in Aryapakkam Village at Kancheepuram, (v) Company’s property at Plot No. 51, Sector 32, Gurugram, and (vi) Land and building at Chennai and Bangalore Plant of the Company. c) Hypothecation of the Company’s entire current assets including stocks of raw material, stock in process, finished goods, spares and book debts (present & future). d) Pari-Passu charge on FDR of ` 58. Other FDR’s pledged with specific banks- PNB, UCO & IndusInd Bank are ` 607.02 (March 31, 2020: ` 134.03) 200 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 e) Irrevocable and Unconditional Personal Guarantee of Mr. Deepak Seth (Promoter Director) and/or Mr. Pulkit Seth (Managing Director). iiiiiiiiii))))) Vehicle loans are secured against hypothecation of respective vehicles. ofileofile iiiiiiiiiiiiiii))))) MMMMMaaaaatttttuuuuurrrrrititititity py py py py prrrrrofile ofileofile 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 is ais ais ais ais as set ou s set out bt bt bt bt beloeloeloeloelow :w :w :w :w : s 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 2021-22 2021-22 2021-22 2021-22 2021-22 2022-23 2022-23 2022-23 2022-23 2022-23 2023-24 2023-24 2023-24 2023-24 2023-24 BBBBBeeeeeyoyoyoyoyondndndndnd 2024-25 2024-25 2024-25 2024-25 2024-25 1,913.56 2,362.55 2,104.39 3,547.69 85.13 103.68 36.81 44.65 iv) The above loan(s) carries rate of interest ranging between 7.40% to 12.00% per annum. E 22 : SHOOOOORRRRRT TET TET TET TET TERRRRRM BOM BOM BOM BOM BORRRRRRRRRROOOOOWWWWWIIIIINNNNNGGGGGSSSSS E 22 : SH E 22 : SH NONONONONOTTTTTE 22 : SH E 22 : SH (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 Working capital loan from banks(secured) Rupee loan [refer note (a) below] - 15,251.01 --------------------------------------------------------- 15,251.01 15,251.01 15,251.01 15,251.01 15,251.01 ======================== e of secucucucucurrrrrititititityyyyy: : : : : The Company has entered into borrowing arrangements with lenders under Consortium Arrangement e of se e of se a) NNNNNaaaaatttttuuuuurrrrre of se e of se for short term borrowings. The security details set out under Note 21 ranks pari passu (as per respective sanction letters) amongst all secured lenders for short term and long term borrowings. 11,328.87 --------------------------------------------------------- 11,328.87 11,328.87 11,328.87 11,328.87 11,328.87 ======================== (Amount in ` Lakh, unless otherwise stated) E 23 : OTHHHHHEEEEER FIR FIR FIR FIR FINNNNNAAAAANNNNNCCCCCIIIIIAAAAAL LL LL LL LL LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS E 23 : OT E 23 : OT NONONONONOTTTTTE 23 : OT E 23 : OT NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 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 137.28 - - - - - - - ---------------------------------------------------------- 137.28 137.28 137.28 137.28 137.28 ======================== 246.97 - - - - - - - ---------------------------------------------------------- 246.97 246.97 246.97 246.97 246.97 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 - 261.51 1,998.68 23.26 29.75 12.34 203.74 - ---------------------------------------------------------- 2,529.29 2,529.29 2,529.29 2,529.29 2,529.29 ======================== 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 ======================== a) The company’s exposure to currency and liquidity risk related to trade payables is disclosed in note 43. 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 2020-21 201 Notes to standalone financial statements for the year ended March 31, 2021 E 24 : PROVOVOVOVOVIIIIISSSSSIIIIIOOOOONSNSNSNSNS E 24 : PR NONONONONOTTTTTE 24 : PR E 24 : PR E 24 : 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 25 : OTHHHHHEEEEER LR LR LR LR LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEESSSSS E 25 : OT E 25 : OT NONONONONOTTTTTE 25 : OT E 25 : OT Advance received against sale of land Deferred government grant Deferred rental income Statutory dues Others E 26 : TRAAAAADDDDDE PE PE PE PE PAAAAAYYYYYAAAAABBBBBLLLLLEEEEE E 26 : TR E 26 : TR NONONONONOTTTTTE 26 : TR E 26 : TR (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 CCCCCuuuuurrrrrrrrrreeeeennnnnttttt MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 MMMMMaaaaarrrrrch 31, ch 31, ch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 350.57 593.49 ---------------------------------------------------------- 944.06 944.06 944.06 944.06 944.06 ======================== 324.96 556.18 ---------------------------------------------------------- 881.14 881.14 881.14 881.14 881.14 ======================== 25.85 46.61 ---------------------------------------------------------- 72.46 72.46 72.46 72.46 72.46 ======================== 23.96 33.39 ---------------------------------------------------------- 57.35 57.35 57.35 57.35 57.35 ======================== (Amount in ` Lakh, unless otherwise stated) NNNNNooooon - Cn - Cn - Cn - Cn - Cuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2020 2020 2020 2020 2020 2,963.62 7.58 42.15 - - ---------------------------------------------------------- 3,013.35 3,013.35 3,013.35 3,013.35 3,013.35 ======================== 2,963.62 8.58 25.71 - - ---------------------------------------------------------- 2,997.91 2,997.91 2,997.91 2,997.91 2,997.91 ======================== CCCCCuuuuurrrrrrrrrreeeeennnnnttttt ch 31, ch 31, MMMMMaaaaarrrrrch 31, ch 31, ch 31, 2021 2021 2021 2021 2021 - 145.61 15.06 550.23 - ---------------------------------------------------------- 710.90 710.90 710.90 710.90 710.90 ======================== 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 ======================== (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 Total Outstanding dues of Micro and Small enterprises Total Outstanding dues of Creditors other than Micro and Small enterprises 331.05 8,800.36 --------------------------------------------------------- 9,131.41 9,131.41 9,131.41 9,131.41 9,131.41 ======================== a) Trade payable are generally on a credit period of not more than 90 days except in case of micro & small enterprises which are 481.65 15,688.60 --------------------------------------------------------- 16,170.25 16,170.25 16,170.25 16,170.25 16,170.25 ======================== setlled within 45 days. b) This amount includes amount due to related parties amounting to ` 7,815.58 (March 31, 2020: ` 1,038.81) (Refer Note No. 46) c) Information as required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for the year ended March 31, 2021 is given below: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 (i) The principal amount and the interest due thereon remaining unpaid to any supplier at the 481.65 end of each accounting year (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. - 331.05 - 202 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (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, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 (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 - - - - - - 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 (to the extent available). 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. 43. 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 73,909.07 - 3,230.97 --------------------------------------------------------- 77,140.04 77,140.04 77,140.04 77,140.04 77,140.04 ======================== 76,327.18 129.54 6,076.61 --------------------------------------------------------- 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 ======================== Revenue is recognised upon transfer of control of products. bbbbb))))) DisaDisaDisaDisaDisaggggggggggrrrrreeeeegggggaaaaatttttioioioioion of r n of reeeeevvvvveeeeennnnnueueueueue: : : : : The Company has performed the disaggregation analysis of revenues considering the nature, n of r n of r n of r amount, timing and uncertainty of revenues. This includes disclosure of revenues- geography wise and customer wise: GGGGGeeeeeooooogggggrrrrraaaaappppphhhhhyyyyy- w- w- w- w- wiseiseiseiseise India Outside India CCCCCuuuuussssstttttooooomememememerrrrr- w- w- w- w- wiseiseiseiseise Related Party Non Related Party (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 3,614.27 73,525.76 --------------------------------------------------------- 77,140.04 77,140.04 77,140.04 77,140.04 77,140.04 --------------------------------------------------------- 9,570.62 67,569.42 --------------------------------------------------------- 77,140.04 77,140.04 77,140.04 77,140.04 77,140.04 --------------------------------------------------------- 8,403.09 74,130.24 --------------------------------------------------------- 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 --------------------------------------------------------- 11,148.78 71,384.55 --------------------------------------------------------- 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 --------------------------------------------------------- Pearl Global Industries Limited Annual Report 2020-21 203 Notes to standalone financial statements for the year ended March 31, 2021 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 Contracted Price Less: Sales Returns (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 77,212.68 72.64 --------------------------------------------------------- 77,140.04 77,140.04 77,140.04 77,140.04 77,140.04 --------------------------------------------------------- 82,578.22 44.89 --------------------------------------------------------- 82,533.33 82,533.33 82,533.33 82,533.33 82,533.33 --------------------------------------------------------- d) Variable Consideration associated with Sales: The Company estimates the variable consideration using the most likely amount or expected value method, whichever approach best predicts the amount of consideration based on the terms of contract and available information and updates the estimates in each reporting period. e) As per the scheme on Remission of Duties and Taxes on Export Products (RoDTEP) of Government of India, the Company is eligible to claim export incentives representing refund of embedded central, state and local duties/ taxes. All the incentives previously under Merchandise Export from India Scheme (MEIS) and the RoSCTL (Rebate of State and Central Taxes and Levies) are now under the purview of the RoDTEP scheme.“The Scheme is effective from January 1, 2021, however the incentive rates are yet to be notified by the Authorities. For the period from January 1, 2021 to March 31, 2021, the Company has recognised ` 421.15 of income towards RoDTEP and corresponding receivable on the basis of best estimate of the management, which is lower than the rates applicable under erstwhile scheme applicable upto December 31, 2020. “For measurement of such income, significant estimates and judgements were made by the management which includes eligibility of export transaction for the claim, timing of processing of such claim and its realization and the rate expected to be notified by the Government authorities in this regard. The estimation of rate involves a high level of uncertainity considering the delay in notification of the rate. The Company has performed sensitivity analysis on sources of estimation, uncertainity and appropriately considered the same while recognizing such income." 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 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 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 55.81 63.58 117.07 770.91 751.47 16.61 255.85 169.53 80.09 98.11 980.53 1,847.44 73.79 29.42 377.08 --------------------------------------------------------- 2,408.39 2,408.39 2,408.39 2,408.39 2,408.39 ======================== 59.86 --------------------------------------------------------- 3,338.77 3,338.77 3,338.77 3,338.77 3,338.77 ======================== 204 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 6,485.70 21,478.41 --------------------------------------------------------- 27,964.11 4,905.89 --------------------------------------------------------- 23,058.22 23,058.22 23,058.22 23,058.22 23,058.22 ======================== 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 ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 24,340.92 --------------------------------------------------------- 24,340.92 24,340.92 24,340.92 24,340.92 24,340.92 ======================== 11,981.44 --------------------------------------------------------- 11,981.44 11,981.44 11,981.44 11,981.44 11,981.44 ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 (((((AAAAA))))) (B)(B) (B)(B) (B) ies at tt tt tt tt the bhe bhe bhe bhe beeeeegggggiiiiinnnnnnnnnniiiiinnnnng of t ies a ies a IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries a he yearrrrr he yea he yea g of t g of t g of the yea ies a he yea g of t Work-in-progress Finished goods Scrap Stock 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 IIIIInnnnnvvvvveeeeennnnntttttooooorrrrries 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 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 7,086.13 1,072.32 33.21 --------------------------------------------------------- 8,191.67 8,191.67 8,191.67 8,191.67 8,191.67 --------------------------------------------------------- 5,703.23 2,412.60 166.84 --------------------------------------------------------- 8,282.67 8,282.67 8,282.67 8,282.67 8,282.67 --------------------------------------------------------- (91.01) (91.01) (91.01) (91.01) (91.01) ======================== 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) ======================== (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 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 9,617.59 569.20 229.39 178.16 184.67 --------------------------------------------------------- 10,779.00 10,779.00 10,779.00 10,779.00 10,779.00 ======================== 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 ======================== Pearl Global Industries Limited Annual Report 2020-21 205 Notes to standalone financial statements for the year ended March 31, 2021 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 E 34 : DEPPPPPRRRRRECECECECECIIIIIAAAAATTTTTIIIIIOOOOON AN AN AN AN ANNNNND AD AD AD AD AMOMOMOMOMORRRRRTTTTTIIIIISSSSSAAAAATTTTTIIIIIOOOOON EN EN EN EN EXXXXXPPPPPEEEEENSNSNSNSNSEEEEE E 34 : DE E 34 : DE NONONONONOTTTTTE 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. 49) 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) Loss Allowance for doubtful debts and advances Corporate social responsibility (refer note ‘b’ below) Loss on mark to market forward contracts 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 1,639.39 1.51 304.66 40.24 415.82 --------------------------------------------------------- 2,401.62 2,401.62 2,401.62 2,401.62 2,401.62 ======================== 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 ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 1,195.54 86.77 39.89 491.22 --------------------------------------------------------- 1,813.42 1,813.42 1,813.42 1,813.42 1,813.42 ======================== 1,277.51 85.75 47.70 350.70 --------------------------------------------------------- 1,761.66 1,761.66 1,761.66 1,761.66 1,761.66 ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 12,878.85 260.36 955.18 73.64 114.81 479.41 1,803.34 418.20 75.12 7.18 335.17 59.13 264.75 220.75 176.24 148.93 29.52 278.86 27.10 - 823.08 --------------------------------------------------------- 19,429.61 19,429.61 19,429.61 19,429.61 19,429.61 ======================== 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 ======================== 206 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 17.50 9.65 0.37 --------------------------------------------------------- 27.52 ======================== 17.50 8.00 3.03 --------------------------------------------------------- 28.53 ======================== 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 e is as fos fos fos fos follllllololololowswswswsws::::: e is a e 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 22.26 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 22.14 - 27.10 - 22.15 c) Miscellaneous Expenses includes expense towards purchase of Electoral Bonds amounting to ` Nil (March 31, 2020: ` 160) 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 Loss on sale of Property, Plant & Equipment Impairment of investment in subsidiaries Profit on account of compulsory acquisition of land Enhanced compensation on land acquisition by NHAI a) The figures in bracket above represents income/ profit 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 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 1,037.41 41.19 33.91 27.24 (184.48) - - (2,335.15) --------------------------------------------------------- --------------------------------------------------------- (116.05) (116.05) (1,263.82) (1,263.82) (116.05) (1,263.82) (116.05) (1,263.82) (116.05) (1,263.82) ======================== ======================== (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 AAAAA (((((iiiii))))) BBBBB (((((iiiii))))) IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill not b r lossssss r los r los ofit o sified td td td td to po po po po prrrrrofit o ofit o sifie l not be re re re re reeeeeclclclclclaaaaassssssifie sifie l not b l not b ofit or los r los ofit o sifie l not b Re-measurement gains/ (losses) on defined benefit plans Income tax expense on items that will not be reclassified to profit or loss r lossssss IIIIIttttteeeeemmmmms ts ts ts ts thhhhhaaaaat wt wt wt wt wililililill bl bl bl bl be re re re re reeeeeclclclclclaaaaassssssifie sifie sifie sified td td td td to po po po po prrrrrofit o ofit o ofit o r los r los ofit or los sifie ofit o r los Cash Flow Hedging reserve on forward contract Foreign currency translation reserve Income tax expense on items that will be reclassified to profit or loss 84.32 (26.31) 979.45 11.96 (342.72) --------------------------------------------------------- 706.70 706.70 706.70 706.70 706.70 ======================== 135.15 (47.23) (991.80) - 346.57 --------------------------------------------------------- (557.31) (557.31) (557.31) (557.31) (557.31) ======================== Pearl Global Industries Limited Annual Report 2020-21 207 Notes to standalone financial statements for the year ended March 31, 2021 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 ( ( ( ( (AAAAA))))) Number/Weighted average number of equity shares (B) (B) outstanding at the end of the year (B) (B) (B) Nominal value of Equity shares A/B) (iiiiin n n n n `))))) A/B) ( Basic/Diluted Earning per share (((((A/B) ( 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 77.40 21,663,937 ` 10 0.36 --------------------------------------------------------- 0.36 --------------------------------------------------------- 500.89 21,663,937 ` 10 2.31 --------------------------------------------------------- 2.31 --------------------------------------------------------- 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 he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 423.74 138.43 7.03 --------------------------------------------------------- 569.20 569.20 569.20 569.20 569.20 ======================== 634.78 241.30 28.88 --------------------------------------------------------- 904.96 904.96 904.96 904.96 904.96 ======================== The contribution payable to these schemes by the Company are at the rates specified in the rules of the schemes. nefit plllllaaaaannnnnsssss nefit p nefit p bbbbb))))) DDDDDefiefiefiefiefinenenenened bd bd bd bd beeeeenefit p 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. iiiii))))) GrGrGrGrGraaaaatttttuuuuuititititity sche y schemememememe y 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) iiiiiiiiii))))) OOOOOtttttheheheheher lor lor lor lor lonnnnng tg tg tg tg teeeeerrrrrm em em em em emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit nefit nefit nefitsssss 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. 208 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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. 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 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 he yea he yea nd of t nd of t ue of obbbbbllllligigigigigaaaaatttttioioioioion an an an an as as as as as at tt tt tt tt the ehe ehe ehe ehe end of t ue of o ue of o PPPPPrrrrreseeseeseeseesennnnnt vt vt vt vt vaaaaalllllue of o he yearrrrr nd of the yea he yea nd of t ue of o he year ir ir ir ir inclnclnclnclncludeudeudeudeuded ud ud ud ud undendendendender er er er er emmmmmppppplololololoyeyeyeyeyee be be be be beeeeenefit he yea he yea ddddd))))) CosCosCosCosCost fot fot fot fot for tr tr tr tr the yea nefit nefit nefit he yea nefit Current service cost Past service cost Interest cost Expected return on plan assets Actuarial (gain) / loss NNNNNet cet cet cet cet cosososososttttt 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 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 ue of t 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 endndndndnd ue of p FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of p ue of p ue of p ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 654.60 654.60 654.60 654.60 654.60 44.29 89.46 - (92.36) (41.19) 654.80 654.80 654.80 654.80 654.80 298.17 298.17 298.17 298.17 298.17 20.02 100.21 - (90.10) (53.96) 274.33 274.33 274.33 274.33 274.33 617.55 617.55 617.55 617.55 617.55 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 ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 89.46 - 44.29 (24.55) - 109.19 109.19 109.19 109.19 109.19 100.21 - 20.02 - - 120.23 120.23 120.23 120.23 120.23 111.96 - 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 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 363.22 24.55 4.43 (92.36) (10.84) 289.02 289.02 289.02 289.02 289.02 - - - - - ----- 388.39 26.26 6.88 (47.38) (10.93) 363.22 363.22 363.22 363.22 363.22 ----- ----- ----- ----- ----- ----- Pearl Global Industries Limited Annual Report 2020-21 209 Notes to standalone financial statements for the year ended March 31, 2021 I is as fos fos fos fos follllllololololowswswswsws::::: I is a n/loss rs rs rs rs reeeeecccccooooogggggnnnnniseiseiseiseised id id id id in On On On On OCCCCCI is a I is a n/los il of actuuuuuaaaaarrrrriaiaiaiaial gl gl gl gl gaaaaaiiiiin/los n/los il of act fffff ))))) DDDDDetetetetetaaaaail of act il of act I is a n/los il of act As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 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 41.19 (10.84) 30.36 30.36 30.36 30.36 30.36 53.96 - 53.96 53.96 53.96 53.96 53.96 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 e sheet det det det det daaaaattttte ae ae ae ae arrrrre ae ae ae ae as fos fos fos fos follllllololololowswswswsws::::: 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 e she l act l act ggggg ))))) PPPPPrrrrriiiiincincincincincipppppaaaaal act e she l act 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 Raaaaattttteeeee se of unnnnnfffffuuuuundendendendended ad ad ad ad amoumoumoumoumounnnnnttttts)s)s)s)s) se of u se of u (((((AAAAAvvvvveeeeerrrrraaaaaggggge ie ie ie ie in cn cn cn cn caaaaase of u se of u 1. Ages from 18 to 30 Years 2. Ages from 30 to 45 Years 3. Ages Above 45 years ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 0.07 0.05 0.07 0.05 0.07 0.05 0.07 0.05 20.41 25.84 20.41 26.28 58 Indian Assured Lives Mortality (2012-14) (modified) ultimate 58 58 58 Indian Assured Lives Mortality (2006-08) (modified) ultimate 0.03 0.02 0.01 0.06 0.06 0.06 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. ies reeeeecccccooooogggggnnnnnizeizeizeizeized id id id id in tn tn tn tn the Bhe Bhe Bhe Bhe Baaaaalllllaaaaancncncncnce She ies r s) / liabiabiabiabiabilililililititititities r ies r s) / l et (assssssetsetsetsetsets) / l s) / l et (a hhhhh))))) NNNNNet (a et (a 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 e She et (a ies r s) / l s) fo n act e adj nd ex e She 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 Present value of obligation Less: Fair value of plan assets NNNNNet aet aet aet aet assssssetsetsetsetsets /( l s /( l s /( l s /( liabiabiabiabiabilililililititititity)y)y)y)y) s /( l As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 654.80 289.02 (365.77) (365.77) (365.77) (365.77) (365.77) 274.33 - (274.33) (274.33) (274.33) (274.33) (274.33) 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) iiiii))))) Expected contribution for the next year is ` 492.69 Lakh (March 31, 2020: ` 417.54 Lakh) in respect of Gratuity. 210 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 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 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) (61.46) (29.09) (61.88) (33.60) 71.91 34.40 72.58 40.04 72.51 34.74 73.15 40.33 (63.00) (29.85) (63.40) (34.40) e not maaaaattttteeeeerrrrriaiaiaiaial & he hese not caaaaalculculculculculllllaaaaattttteeeeeddddd..... C.C.C.C.C. SSSSSeeeeennnnnsitsitsitsitsitivivivivivititititities dies dies dies dies due tue tue tue tue to mo e not m e not m o morrrrrtttttaaaaalllllititititity & wy & wy & wy & wy & wititititithdrhdrhdrhdrhdraaaaawwwwwaaaaals als als als als arrrrre not m 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 o moo mo o mo l & he l & he e not m hese not c act of ch l & he 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. 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 as fos fos fos fos follllllololololowswswswsws::::: n is a n is a nefit o ofile of defi n is a 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, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (F(F(F(F(Fuuuuundendendendendeddddd))))) GrGrGrGrGraaaaatttttuuuuuititititityyyyy (((((UUUUUnnnnnfffffuuuuundendendendendeddddd))))) 67.06 33.07 28.21 50.46 74.33 753.72 9.78 11.47 22.85 47.49 66.68 470.02 55.88 45.58 50.45 36.42 59.87 771.60 9.02 10.49 20.93 38.66 69.66 599.68 NONONONONOTTTTTE 40 : CA E 40 : CAPPPPPIIIIITTTTTAAAAAL ML ML ML ML MAAAAANNNNNAAAAAGGGGGEEEEEMMMMMEEEEENNNNNTTTTT E 40 : CA E 40 : CA E 40 : CA The Company’s objectives when managing capital are to: – – safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and The Company’s objectives when managing capital are to: safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and Pearl Global Industries Limited Annual Report 2020-21 211 Notes to standalone financial statements for the year ended March 31, 2021 – maintain an appropriate capital structure of debt and equity. The Board of Directors have the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international markets so as to maintain investors, creditors and markets confidence and to sustain future development of the business. The Company monitors capital, using a medium term view ranging between three to five years, on the basis of a number of financial ratios generally used by the industry. The Company monitors capital structure using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt comprises of long term and short term borrowings less cash and cash equivalents. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of reporting periods were as follows: – maintain an appropriate capital structure of debt and equity. The Board of Directors have the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international markets so as to maintain investors, creditors and markets confidence and to sustain future development of the business. The Company monitors capital, using a medium term view ranging between three to five years, on the basis of a number of financial ratios generally used by the industry. The Company monitors capital structure using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt comprises of long term and short term borrowings less cash and cash equivalents. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of reporting periods were as follows: (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 et debt (AAAAA))))) et debt ( NNNNNet debt ( et debt ( et debt ( Borrowings (Refer to note 21 and 22) Current maturity of long term loans (Refer to note 23) Trade payables (Refer to note 26) Other payables (Refer to note 23 and 25) Less: cash and cash equivalents (Refer to note 17) 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% --------------------------------------------------------- No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2021 and March 31, 2020. 19,528.65 1,998.68 16,170.25 4,392.13 (4,599.50) --------------------------------------------------------- 37,490.21 37,490.21 37,490.21 37,490.21 37,490.21 --------------------------------------------------------- 2,166.39 29,205.63 --------------------------------------------------------- 31,372.02 31,372.02 31,372.02 31,372.02 31,372.02 --------------------------------------------------------- 68,862.23 68,862.23 68,862.23 68,862.23 68,862.23 --------------------------------------------------------- 54.44% 54.44% 54.44% 54.44% 54.44% --------------------------------------------------------- Equity share capital (Refer to note 19) Other equity (Refer to note 20) 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 ( TTTTTotototototaaaaal Cl Cl Cl Cl Caaaaapppppitititititaaaaal (B) l (B) l (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 NONONONONOTTTTTE 41 : DE E 41 : DE E 41 : DE E 41 : DE I)I)I)I)I) HHHHHeeeeedddddggggge Ae Ae Ae Ae Accccccccccououououounnnnntttttiiiiinnnnnggggg (((((iiiii))))) 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 Chief Financial Officer and Board of Directors of the Company. 212 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 (((((iiiiiiiiii))))) 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 AsAsAsAsAssetsetsetsetsetsssss ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 12.34 991.80 The critical terms of the foreign currency forward contracts match the terms of the expected highly probable forecast sale transactions. The cash flow hedges of the forecasted sale transactions for the year ended March 31, 2021 were assessed to be highly effective and unrealised profit of ` 979.45 lakh, with a deferred tax liability of ` 342.72 lakh relating to the hedging instruments, is included in OCI (March 31, 2020: Unrealised loss of ` 991.80 lakh with a corresponding deferred tax assets of ` 346.57 lakh). ofileofile::::: The following table includes the maturity profile of the foreign exchange forward contracts: ofileofile (((((iiiiiiiiiiiiiii))))) MMMMMaaaaatttttuuuuurrrrrititititity Py Py Py Py Prrrrrofile PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As at March 31, 2021 (INR) Notional amount (in USD) Average forward rate (USD/INR) As at March 31, 2021 (INR) 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 43.00 72.53 1 t1 t1 t1 t1 to 3o 3o 3o 3o 3 momomomomonnnnnttttthhhhhsssss - - - 5,617.99 77.00 72.96 3 t3 t3 t3 t3 to 6o 6o 6o 6o 6 momomomomonnnnnttttthhhhhsssss - - - 6,316.02 85.92 73.51 6 t6 t6 t6 t6 to 9o 9o 9o 9o 9 momomomomonnnnnttttthhhhhsssss - - - 4,313.64 58.00 74.37 9 t9 t9 t9 t9 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss 2,278.85 30.00 - 4,625.57 61.00 75.83 TTTTTotototototaaaaalllll 30.00 75.96 23,992.21 324.92 73.84 (((((iv)iv)iv)iv)iv) The impact of the hedging instruments on the balance sheet is as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Fair value of foreign currency forward exchange contract designated as hedging instruments LLLLLiabiabiabiabiabilililililitititititiesiesiesiesies ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 AsAsAsAsAssetsetsetsetsetsssss ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 12.34 991.80 The line item in Balance Sheet where Hedge instrument is disclosed is Other Financial Liabilities. The changes in fair value of forward exchange contract are disclosed as under: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Foreign currency risk forward contract- As at March 31, 2021 Foreign currency risk forward contract- As at March 31, 2020 (((((AAAAAmoumoumoumoumounnnnnt t t t t ````` ) ) ) ) ) 979.45 (991.80) Pearl Global Industries Limited Annual Report 2020-21 213 Notes to standalone financial statements for the year ended March 31, 2021 (v)(v)(v)(v)(v) The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows: PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 Highly probable forecast sales act of hedddddgggggiiiiinnnnng og og og og on en en en en eqqqqquuuuuititititityyyyy act of he act of he (v(v(v(v(viiiii))))) 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 LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of t of t of t of t of nd lossssss nd los nd los ofit a ofit a ppppprrrrrofit a ofit and los nd los ofit a 979.45 Cash Flow Hedge Reserve (OCI) Cash Flow Hedge Reserve (OCI) (991.80) AAAAAmoumoumoumoumounnnnnttttt sified frd frd frd frd frooooommmmm sifie r r r r reeeeeclclclclclaaaaassssssifie sifie sifie OOOOOCCCCCI tI tI tI tI to po po po po prrrrrofitofitofitofitofit r lossssss r los r los ooooor los r los 19.15 (38.42) LLLLLiiiiine itne itne itne itne iteeeeem im im im im innnnn SSSSStttttaaaaattttteeeeemememememennnnnt of t of t of t of t of nd lossssss nd los nd los ofit a ofit a ppppprrrrrofit a ofit and los nd los ofit a Revenue from Operations Revenue from Operations Set out below are the details of each component of equity and the analysis of other comprehensive income in respect of CFHR PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts Amount reclassified to profit & loss Tax effect 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 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 Flololololow Hw Hw Hw Hw Heeeeedddddgggggeeeee RRRRReseeseeseeseeserrrrrvvvvve (Ce (Ce (Ce (Ce (CFHFHFHFHFHR)R)R)R)R) 979.45 (19.15) 19.15 (342.72) (991.80) (38.42) 38.42 346.57 (v(v(v(v(viiiiiiiiii)))))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. IIIIII)I)I)I)I) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaars of U rs of Unnnnnhehehehehedddddgggggeeeeed fod fod fod fod forrrrreigeigeigeigeign cun cun cun cun currrrrrrrrreeeeencncncncncy exy exy exy exy exppppposososososuuuuurrrrreseseseses::::: rs of U rs of U rs of U PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 Foreign currency receivable Foreign currency payable Foreign currency loan receivable FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy n absollllluuuuuttttteeeee n abso n abso (((((iiiiin abso n abso nonononono.).).).).) $21,920,847 2,635 $889,599 (((((AAAAAmoumoumoumoumounnnnnttttt ````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) 16,111.82 2.27 653.85 FFFFFooooorrrrreigeigeigeigeignnnnn CCCCCuuuuurrrrrrrrrreeeeencncncncncyyyyy n absollllluuuuuttttteeeee n abso n abso (((((iiiiin abso n abso nonononono.).).).).) $7,711,568 $2,730,970 $846,699 (((((AAAAAmoumoumoumoumounnnnnttttt ````` i i i i in ln ln ln ln laaaaakkkkkhhhhh))))) 5,813.75 2,058.88 638.32 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. 214 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 E 42 : FAIIIIIR VR VR VR VR VAAAAALLLLLUUUUUE ME ME ME ME MEEEEEAAAAASSSSSUUUUURRRRREEEEEMMMMMEEEEENNNNNTSTSTSTSTS E 42 : FA NONONONONOTTTTTE 42 : FA E 42 : FA E 42 : FA IIIII FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss (a)(a)(a)(a)(a) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts bs bs bs bs by cy cy cy cy caaaaattttteeeeegggggooooorrrrryyyyy Except Investment in equity instruments (Quoted) and investment in mutual funds which are measured at fair value through profit or loss, all other financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents, other bank balances, interest receivable, other receivables, trade payables, employee related liabilities and borrowings, are measured at amortised cost. Derivative financial instruments are measured at fair value through other comprehensive income. (((((bbbbb))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue hue hue hue hue hieieieieierrrrraaaaarrrrrchchchchchyyyyy This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table. The following table shows the carrying amounts and fair values of financial assets and financials liabilities, including their levels of in the fair value hierarchy: ch 31, 2021 ch 31, 2021 As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs (Amount in ` Lakh, unless otherwise stated) FFFFFVOVOVOVOVOCCCCCIIIII FFFFFVVVVVTTTTTPPPPPLLLLL CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll AsAsAsAsAssetsetsetsetsets -s -s -s -s - aaaaamomomomomorrrrrtttttiseiseiseiseiseddddd cccccosososososttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll ies - ies - LLLLLiabiabiabiabiabilililililititititities - ies - ies - aaaaamomomomomorrrrrtttttiseiseiseiseiseddddd cccccosososososttttt TTTTTotototototaaaaalllll cccccaaaaarrrrrrrrrryiyiyiyiyinnnnnggggg aaaaamoumoumoumoumounnnnnttttt FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue LLLLLeeeeevvvvvel 1el 1el 1el 1el 1 LLLLLeeeeevvvvvel 2el 2el 2el 2el 2 LLLLLeeeeevvvvvel 3el 3el 3el 3el 3 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 Investment in equity shares (Quoted) Investment in mutual funds s not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s not mea s not mea FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets not mea s not mea Investment in equity shares (Unquoted) Investment in preference shares Investment in government securities Loan to employees Loan to related parties Security Deposits Interest accrued but not due on term deposits Interest accrued but not due on loan to related parties Deposits with original maturity of more than 12 months Trade receivables Cash and cash equivalents Other bank balances ies measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies mea ies mea ies mea Financial Liabilites at Fair Value through OCI - Cash Flow Hedge - - - - - - - - - - - - - - ----- 335.00 754.38 - - - - - - - - - - - - 1,089.38 1,089.38 1,089.38 1,089.38 1,089.38 - - 11,308.00 270.00 1.63 31.04 785.10 734.62 17.70 168.75 45.54 14,521.72 4,599.50 1,108.15 33,591.76 33,591.76 33,591.76 33,591.76 33,591.76 12.34 - - - - - - - - - - - - - - - - ----- - 335.00 754.38 335.00 754.38 11,308.00 270.00 1.63 31.04 785.10 734.62 17.70 168.75 45.54 14,521.72 4,599.50 1,108.15 34,681.14 34,681.14 34,681.14 34,681.14 34,681.14 - - - - - - - - - - - - 1,089.38 1,089.38 1,089.38 1,089.38 1,089.38 12.34 12.34 - - - - - - - - - - - - - - ----- - - - - - - - - - - - - - - - ----- - 335.00 754.38 - - - - - - - - - - - - 1,089.38 1,089.38 1,089.38 1,089.38 1,089.38 12.34 Pearl Global Industries Limited Annual Report 2020-21 215 Notes to standalone financial statements for the year ended March 31, 2021 (Amount in ` Lakh, unless otherwise stated) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue LLLLLeeeeevvvvvel 1el 1el 1el 1el 1 LLLLLeeeeevvvvvel 2el 2el 2el 2el 2 LLLLLeeeeevvvvvel 3el 3el 3el 3el 3 TTTTTotototototaaaaalllll PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ies not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities not mea ies not mea ies not mea ies not mea Borrowings Lease Liabilities Security Deposits Book overdraft Interest accrued but not due on borrowings Unpaid dividends Trade payables Creditors for capital goods Others 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 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 Investment in equity shares (Quoted) Investment in mutual funds s not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue s not mea s not mea FFFFFiiiiinnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets not mea s not mea Investment in equity shares (Unquoted) Investment in preference shares Investment in government securities Loan to employees Loan to related parties Security Deposits Interest accrued but not due on term deposits Interest accrued but not due on loan to related parties Deposits with original maturity of more than 12 months Trade receivables Cash and cash equivalents Other bank balances ies measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities mea ies mea ies mea ies mea Financial Liabilites at Fair Value through OCI - Cash Flow Hedge FFFFFVOVOVOVOVOCCCCCIIIII FFFFFVVVVVTTTTTPPPPPLLLLL CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll AsAsAsAsAssetsetsetsetsets -s -s -s -s - aaaaamomomomomorrrrrtttttiseiseiseiseiseddddd cccccosososososttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll LLLLLiabiabiabiabiabilililililititititities - ies - ies - ies - ies - aaaaamomomomomorrrrrtttttiseiseiseiseiseddddd cccccosososososttttt - - - - - - - - - 12.34 12.34 12.34 12.34 12.34 - - - - - - - - - - - - - - ----- - - - - - - - - - ----- 141.00 692.68 - - - - - - - - - - - - 833.68 833.68 833.68 833.68 833.68 - - - - - - - - - ----- - - 11,428.05 300.00 1.63 33.40 797.57 800.77 30.05 147.47 45.54 9,740.45 2,059.77 931.61 26,316.31 26,316.31 26,316.31 26,316.31 26,316.31 991.80 - - 21,527.33 3,217.75 137.28 261.51 23.26 29.75 16,170.25 203.74 - 41,570.87 41,570.87 41,570.87 41,570.87 41,570.87 - - - - - - - - - - - - - - ----- - TTTTTotototototaaaaalllll cccccaaaaarrrrrrrrrryiyiyiyiyinnnnnggggg aaaaamoumoumoumoumounnnnnttttt 21,527.33 3,217.75 137.28 261.51 23.26 29.75 16,170.25 203.74 - 41,583.21 41,583.21 41,583.21 41,583.21 41,583.21 141.00 692.68 11,428.05 300.00 1.63 33.40 797.57 800.77 30.05 147.47 45.54 9,740.45 2,059.77 931.61 27,149.99 27,149.99 27,149.99 27,149.99 27,149.99 - - - - - - - - - 12.34 12.34 12.34 12.34 12.34 141.00 692.68 - - - - - - - - - - - - 833.68 833.68 833.68 833.68 833.68 991.80 991.80 - - - - - - - - - ----- - - - - - - - - - - - - - - ----- - 21,547.66 21,547.66 - - - - - - - - - - - - - - - - 21,560.00 21,560.00 21,547.66 21,547.66 21,560.00 21,547.66 21,560.00 21,560.00 21,547.66 21,547.66 - - - - - - - - - - - - - - ----- - 141.00 692.68 - - - - - - - - - - - - 833.68 833.68 833.68 833.68 833.68 991.80 216 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs ies not measssssuuuuurrrrreeeeed ad ad ad ad at ft ft ft ft faaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue FFFFFiiiiinnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities not mea ies not mea ies not mea ies not mea Borrowings Lease Liabilities Security Deposits Book overdraft Interest accrued but not due on borrowings Unpaid dividends Trade payables Creditors for capital goods Others (Amount in ` Lakh, unless otherwise stated) FFFFFVOVOVOVOVOCCCCCIIIII FFFFFVVVVVTTTTTPPPPPLLLLL CCCCCaaaaarrrrrrrrrryiyiyiyiyinnnnng ag ag ag ag amoumoumoumoumounnnnnttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll AsAsAsAsAssetsetsetsetsets -s -s -s -s - aaaaamomomomomorrrrrtttttiseiseiseiseiseddddd cccccosososososttttt FFFFFiiiiinnnnnaaaaancianciancianciancialllll LLLLLiabiabiabiabiabilililililititititities - ies - ies - ies - ies - aaaaamomomomomorrrrrtttttiseiseiseiseiseddddd cccccosososososttttt - - - - - - - - - 991.80 991.80 991.80 991.80 991.80 - - - - - - - - - ----- - - - - - - - - - ----- 22,216.34 3,049.77 246.97 26.87 37.48 31.85 9,131.41 30.21 48.19 34,819.09 34,819.09 34,819.09 34,819.09 34,819.09 TTTTTotototototaaaaalllll cccccaaaaarrrrrrrrrryiyiyiyiyinnnnnggggg aaaaamoumoumoumoumounnnnnttttt 22,216.34 3,049.77 246.97 26.87 37.48 31.85 9,131.41 30.21 48.19 35,810.88 35,810.88 35,810.88 35,810.88 35,810.88 FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllueueueueue LLLLLeeeeevvvvvel 1el 1el 1el 1el 1 LLLLLeeeeevvvvvel 2el 2el 2el 2el 2 LLLLLeeeeevvvvvel 3el 3el 3el 3el 3 TTTTTotototototaaaaalllll - - - - - - - - - 991.80 991.80 991.80 991.80 991.80 - - - - - - - - - ----- 22,236.67 - - - - - - - - 22,236.67 22,236.67 22,236.67 22,236.67 22,236.67 22,236.67 - - - - - - - - 23,228.46 23,228.46 23,228.46 23,228.46 23,228.46 c) The Company has an established control framework with respect to the measurement of fair values. The finance and accounts team that has overall responsibility for overseeing all significant fair value measurements and reports directly to the board of directors. The team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified. Significant valuation issues are reported to the Company’s board of directors. d) Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). There have been no transfers in either direction for the year ended 31 March 2021 and 31 March 2020. e) ue of finnnnnaaaaancianciancianciancial al al al al assssssetsetsetsetsets as as as as and lnd lnd lnd lnd liabiabiabiabiabilililililititititities mea ue of fi FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue of fi ue of fi ies measssssuuuuurrrrreeeeed ad ad ad ad at at at at at amomomomomorrrrrtttttiseiseiseiseised cd cd cd cd cosososososttttt ies mea ies mea ue of fi ies mea The carrying amounts of short-term trade and other receivables, trade payables, cash and cash equivalents and other bank balances are considered to be the same as their fair values, due to their short-term nature. For other financial liabilities/ assets that are measured at fair value, the carrying amounts are equal to the fair values. Pearl Global Industries Limited Annual Report 2020-21 217 Notes to standalone financial statements for the year ended March 31, 2021 f ) Specific Valuation techniques used to value financial instruments include: TTTTTypypypypypeeeee VVVVVaaaaallllluuuuuaaaaatttttioioioioion tn tn tn tn teeeeechchchchchnnnnniqiqiqiqiqueueueueue SigSigSigSigSignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababable dle dle dle dle daaaaatttttaaaaa IIIIInnnnnttttteeeeerrrrr-----rrrrrelelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp bbbbbetetetetetwwwwweeeeeeeeeen fn fn fn fn faaaaaiiiiirrrrr vvvvvaaaaallllluuuuuaaaaatttttioioioioion an an an an andndndndnd sigsigsigsigsignnnnnificificificificificaaaaannnnnttttt uuuuunononononobsebsebsebsebserrrrrvvvvvababababable dle dle dle dle daaaaatttttaaaaa Not Applicable Derivative financial instruments (forward exchange contract) Investments in mutual fund measured at FVTPL (quoted) Mark to Market valuation Net asset value (‘NAV’) technique, as stated by the issuers of these mutual fund units as at Balance Sheet date Investment in quoted equity instruments of On the basis of quoted entities other than subsidiaries Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable rates available from securities markets in India Based on the discounting Not Applicable* factor as at reporting date. Not Applicable Fair Value of security deposits paid & received (Other than perpetual security deposits) *Discount rate used in determining fair value 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. E 43 : 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 43 : FI E 43 : FI NONONONONOTTTTTE 43 : FI E 43 : 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 has exposure to the following risks arising from financial instruments: - - - market risk. credit risk, liquidity risk and 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..... CCCCCrrrrreeeeedddddit rit rit rit rit riskiskiskiskisk 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. 218 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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, 2021 Trade Receivables as of March 31, 2020 NNNNNeiteiteiteiteitheheheheher pr pr pr pr paaaaasssssttttt dddddue no ue norrrrr ue no ue no ue no iiiiimmmmmpppppaaaaaiiiiirrrrreeeeeddddd 10,726.15 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 90 t90 t90 t90 t90 to 180 o 180 o 180 180 daaaaaysysysysys 180 d 180 d dddddaaaaaysysysysys 180 d 180 d TTTTTotototototaaaaalllll 1,775.61 1,011.59 39.05 969.30 14,521.72 5,787.82 1,705.85 748.31 249.66 1,248.81 9,740.45 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: ----- 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 ofileofile e Giv e Giv GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeee Giv e Giveeeeen tn tn tn tn tooooo e Giv Standard Chartered Bank, Hongkong Branch ils of ils of DDDDDetetetetetaaaaails of ils of ils of ubsidiaiaiaiaiarrrrryyyyy ubsid ubsid SSSSSubsid ubsid Pearl Global (HK) Limited ose of ose of PPPPPuuuuurprprprprpose of ose of ose of GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee Securing Credit Facilities AAAAAmoumoumoumoumounnnnnt at at at at as as as as as attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 USD 30.00 lakh equivalent to ` 2,205.00 lakh GGGGGuuuuuaaaaarrrrraaaaannnnnttttteeeeeeeeee VVVVVaaaaalllllid Uid Uid Uid Uid Uptptptptptooooo February 04, 2023 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 ` 14,700.00 lakh Securing Credit BDT 9,000.00 lakh equivalent to ` 7,636.03 lakh Facilities October 11, 2021 - 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. 3)3)3)3)3) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnnttttts as as as as and cnd cnd cnd cnd caaaaash de sh depppppositositositositositsssss sh 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. B.B.B.B.B. 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. Pearl Global Industries Limited Annual Report 2020-21 219 Notes to standalone financial statements for the year ended March 31, 2021 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 s finnnnnaaaaancianciancianciancial ll ll ll ll liabiabiabiabiabilililililititititities b ies b s fi he Commmmmpppppaaaaannnnnyyyyy’’’’’s fi s fi he Co he Co ofile of t ises the mhe mhe mhe mhe maaaaatttttuuuuurrrrrititititity py py py py prrrrrofile of t ofile of t TTTTThe the the the the tababababable ble ble ble ble beloeloeloeloelow sw sw sw sw suuuuummmmmmmmmmaaaaarrrrrises t ises t ises t ofile of the Co ies b s fi he Co ofile of t ises t uuuuundndndndndiscisciscisciscououououounnnnnttttteeeeed pd pd pd pd paaaaayyyyymememememennnnntttttsssss..... As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 Borrowings Lease Liabilities Current maturities of long-term borrowings Trade payables Other financial liabilities 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 C.C.C.C.C. MMMMMaaaaarrrrrkkkkket ret ret ret ret riskiskiskiskisk > 5 yearsrsrsrsrs > 5 yea > 5 yea > 5 yea > 5 yea TTTTTotototototaaaaalllll LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 11,349.19 161.36 489.99 16,170.25 530.61 3 t3 t3 t3 t3 to 12o 12o 12o 12o 12 momomomomonnnnnttttthhhhhsssss - 220.21 1,508.69 - - 1 t1 t1 t1 t1 to 5o 5o 5o 5o 5 yeayeayeayeayearsrsrsrsrs 7,737.94 1,452.10 - - 137.28 461.84 1,384.08 - - - > 5 yearsrsrsrsrs > 5 yea > 5 yea > 5 yea > 5 yea 1 t1 t1 t1 t1 to 5o 5o 5o 5o 5 3 t3 t3 t3 t3 to 12o 12o 12o 12o 12 LLLLLesesesesess ts ts ts ts thhhhhaaaaannnnn yeayeayeayeayearsrsrsrsrs momomomomonnnnnttttthhhhhsssss 3 monnnnnttttthhhhhsssss 3 mo 3 mo 3 mo 3 mo 546.00 15,303.80 97.39 4,708.37 1,604.97 56.90 179.46 1,208.45 - - 349.69 1,231.41 - - - - 37.48 - 9,131.41 1,375.88 19,548.98 3,217.75 1,998.68 16,170.25 667.89 TTTTTotototototaaaaalllll 20,655.57 3,049.77 1,581.10 9,131.41 1,413.36 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, 2021 and March 31, 2020. 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, 2021 March 31, 2020 r der decccccrrrrreaeaeaeaeasesesesese DDDDDeeeeecccccrrrrreaeaeaeaease/( se/( se/( se/(iiiiincncncncncrrrrreaeaeaeaease)se)se)se)se) IIIIIncncncncncrrrrreaeaeaeaease ose ose ose ose or de r der de se/( ofit befoefoefoefoeforrrrre te te te te taaaaaxxxxx iiiiin bn bn bn bn baaaaasis psis psis psis psis poooooiiiiinnnnntttttsssss iiiiin pn pn pn pn prrrrrofit b ofit b ofit b ofit b +50 10.94 (10.94) -50 10.62 +50 (10.62) -50 220 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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. 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, 2021 March 31, 2020 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 (70.19) 70.19 (71.03) 71.03 exexexexexchchchchchaaaaannnnnggggge re re re re raaaaattttteeeee +5% -5% +5% -5% E 44 : SEGMMMMMEEEEENNNNNT INT INT INT INT INFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN E 44 : SEG E 44 : SEG NONONONONOTTTTTE 44 : SEG E 44 : 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. E 45 : CONNNNNTTTTTIIIIINNNNNGGGGGEEEEENNNNNT LT LT LT LT LIIIIIAAAAABBBBBIIIIILLLLLIIIIITTTTTIIIIIEEEEES AS AS AS AS ANNNNND CD CD CD CD COOOOOMMMMMMMMMMIIIIITTTTTMMMMMEEEEENNNNNTSTSTSTSTS E 45 : CO E 45 : CO NONONONONOTTTTTE 45 : CO E 45 : CO he exttttteeeeennnnnt not p he ex he ex ies (TTTTTo to to to to the ex ies ( ies ( a)a)a)a)a) CoCoCoCoConnnnntttttiiiiinnnnngggggeeeeennnnnt lt lt lt lt liabiabiabiabiabilililililititititities ( t not prrrrrovovovovovideideideideided fod fod fod fod for)r)r)r)r) t not p t not p he ex ies ( t not p I (i) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position. - - - Tax Demand as per Sec 143(1) of Income Tax Act, 1961 (with respect to A.Y. 2015-16) Tax Demand as per Sec 143(3) of Income Tax Act, 1961 (with respect to A.Y. 2016-17) Tax Demand as per Sec 143(3) of Income Tax Act, 1961 (with respect to A.Y. 2017-18) - Demand as per TDS (TRACES) portal - CPC (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 8.34 38.83 16.61 8.71 8.30 38.83 16.61 16.52 (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. Pearl Global Industries Limited Annual Report 2020-21 221 Notes to standalone financial statements for the year ended March 31, 2021 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 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 3,870.51 38.08 953.56 38.08 over which Key Managerial Personnel have Significant influence - - 1.00 0.50 V The Company has given the corporate guarantees to banks on behalf of its foreign subsidiaries amounting to ` 24,541.03 For enterprise For others 1.00 0.50 (March 31, 2020: ` 32,092.23) (Refer Note No. 43 & 46) 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 ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 - 198.72 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 46 : RELLLLLAAAAATTTTTEEEEED PD PD PD PD PAAAAARRRRRTTTTTY TY TY TY TY TRRRRRAAAAANSNSNSNSNSAAAAACCCCCTTTTTIIIIIOOOOONSNSNSNSNS E 46 : RE E 46 : RE NONONONONOTTTTTE 46 : RE E 46 : RE t of relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies t of r t of r AAAAA..... LLLLLisisisisist of r t of r e of Relelelelelaaaaatttttioioioioionnnnnshshshshshiiiiippppp e of R e of R NNNNNaaaaatttttuuuuurrrrre of R e of R ic (Dirrrrreeeeect)ct)ct)ct)ct) ic (Di ic (Di ct / Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct) DDDDDooooomesmesmesmesmestttttic (Di ct / I ct / I y (Dirrrrreeeeect / I y (Di y (Di ubsidiaiaiaiaiarrrrry (Di ubsid ubsid SSSSSubsid ic (Di ct / I y (Di ubsid me of the Rhe Rhe Rhe Rhe Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy me of t me of t NNNNNaaaaame of t me of t Pearl Apparel Fashions Limited (Formerly known as Lerros Fashions India Limited) Pearl Global Kaushal Vikas Limited SBUYS E-Commerce Limited (w.e.f. 20.09.2019) OOOOOvvvvveeeeersea s (Dirrrrreeeeect)ct)ct)ct)ct) s (Di s (Di rsea rsea rseas (Di s (Di rsea Pearl Global Fareast Limited Pearl Global (HK) Limited Norp Knit Industries Limited OOOOOvvvvveeeeersea rseas (Is (Is (Is (Is (Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct) rsea rsea rsea A & B Investment Limited Pearl Global F.Z.E. DSSP Global Limited Pearl Global Vietnam Company Limited Pearl Global(Chang Zhou) Textile Technology Company Limted Pearl Grass Creations Limited (Formerly known as Pearl Tiger HK Limited) PGIC Investment Limited Prudent Fashions Limited PT Pinnacle Apparels (Formerly known as PT Norwest Industry) Vin Pearl Global Vietnam Limited 222 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 ise oveeeeer wr wr wr wr whhhhhich Kich Kich Kich Kich Keeeeeyyyyy ise ov EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov ise ov MMMMMaaaaannnnnaaaaagggggeeeeerrrrriaiaiaiaial Pl Pl Pl Pl Peeeeersorsorsorsorsonnnnnnelnelnelnelnel cise Signnnnnificificificificificaaaaannnnnt it it it it innnnnflflflflflueueueueuencncncncnceeeee Nim International Commerce LLP cise Sig exexexexexeeeeerrrrrcise Sig cise Sig cise Sig DDDDDooooomesmesmesmesmesttttticicicicic Little People Education Society 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) 6Degree Manufacturing Limited (Formerly Zamira Denim Lab Limited) Apex Black Limited (Formerly Fabric & Trims Limited) Blueprint Design 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) Digital Ecom Techno Private Limited Digital Internet Technologies Limited Elevated Chance Limited Fareast Vogue Limited Frou Holdings Limited FX Import Company Limited Green Apparel Industries Ltd Grupo Sourcing Limited (Hongkong) Jcraft Array Limited (w.e.f. 12.04.2018) JJ Star Industrial Limited JSM Trading (FZE.) Kindred Brands Ltd (Formerly NW Far-east Limited) Kleider Sourcing FZCO (w.e.f 17.01.2019) Kleider Sourcing Hongkong Limited Krayon Sourcing Limited (Formerly Souring Solutions HK Limited) Lai Chi Kok Apparels Limited Multinational Textile Group Limited NAFS Limited Nor Lanka Manufacturing Colombo Limited Nor Lanka Manufacturing Limited Norwest Industries Limited Pallas Holdings Limited Pearl Global Industries Limited Annual Report 2020-21 223 Notes to standalone financial statements for the year ended March 31, 2021 PDS Far-east Limited PDS Asia Star Corporation Limited PDS Global Investments Limited PDS Ventures Limited (w.e.f. 03.07.2018) PDS Smart Fabric Tech Limited (Formerly Funky Brands Company Limited) PDS Sourcing Limited (Erstwhile Global Textiles Group Limited) PDS Tailoring Limited (Formerly Nor India Manufacturing Company Limited) PDS H2GO Glove Manufacturing Limited PDS Multinational FZCO PDS Manufacturing Limited PDS Smart Fabric Tech (UK) Limited PG Group Limited PG Home Group Limited PG Home Group SPA (Formerly Pearl GES Home Group SPA) Poetic Knitwear Limited Poeticgem International Limited Poeticgem International FZCO Progress Manufacturing Group Ltd Pro Trusted Med Tech Limited (Formerly FX Import Hong Kong Limited) Premier Pearl Garment Joint Stock Co. Limited Razamtazz Limited Redwood Internet Ventures Limited Rising Asia Star Hongkong Limited (Formerly Techno Manufacturing Limited) Simple Approach (Canada) Limited Smart Notch Industrial Limited Sourcing Solutions Limited Spring Near East Manufacturing Company Limited Styleberry Limited Superb Mind Holdings Limited S&D Industries Limited Stertex B.V. Techno Design HK Limited (Formerly DPOD Manufacturing Limited Technocian Fashion Private Limited (w.e.f. 20.03.2019) Transnational Textile Group Limited Twins Asia FZCO (w.e.f. 17.01.2019) Twin Asia Limited Zamira Fashion Limited KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnelnelnelnelnel Mr. Deepak Seth P) & theiheiheiheiheir rr rr rr rr relelelelelaaaaatttttiviviviviveeeee (K(K(K(K(KMMMMMP) & t P) & t P) & t P) & t Chairman Vice Chairman & Managing Director Mr. Pulkit Seth Mrs. Shifalli Seth Whole-Time Director Mr. Uma Shankar Kaushik (w.e.f 28.07.2020) Whole-Time Director Whole-Time Director Mr. Shailesh Kumar (w.e.f 07.10.2020) Whole-Time Director Mr. Vinod Vaish (Till 30.04.2020) 224 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 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 (Till 15.02.2021) Company Secretary Mr. Mayank Jain (w.e.f 21.06.2021) Independent Director Mr. Chittranjan Dua Independent Director Mr. Rajendra Kumar Aneja Independent Director Mr. Anil Nayar Independent Director Mrs. Madhulika Bhupatkar (w.e.f 18.03.2020) Independent Director Mr. Abhishek Goyal sactioioioioionnnnnsssss::::: sact sact e of Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttties Ties Ties Ties Ties Trrrrraaaaannnnnsact e of R e of R Disclosuuuuurrrrre of R Disclos Disclos B.B.B.B.B. Disclos sact e of R Disclos y Coy Commmmmpppppaaaaannnnniesiesiesiesies y Coy Co ubsidiaiaiaiaiarrrrry Co ubsid ubsid (((((iiiii))))) SSSSSubsid ubsid PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Purchase of goods Sale of goods - raw material Sale of goods – readymade garments Source support income Income on corporate guarantee Expenses paid on behalf of the Company Expenses paid by the Company on other’s behalf SAP income Investment in equity shares Interest income Impairment of investment in subsidiaries (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 24,341.08 438.20 9,132.42 55.39 174.27 17.72 74.71 117.07 - 32.15 33.91 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 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 Pearl Global (HK) Limited, Hong Kong for USD 30.00 lakh equivalent to ` 2,205.00 lakh (March 31, 2020 USD 120.00 lakh equivalent to ` 9,046.80 lakh) To Hongkong and Shanghai Banking Corporation Ltd., Hongkong Branch for securing credit facilities to its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong for USD 200.00 lakh equivalent to `14,700.00 lakh (March 31, 2020: USD 200.00 lakh equivalent to ` 15,078.00 lakh) 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 ` 7,636.03 lakh (March 31, 2020 : BDT 9,000 lakh equivalent to ` 7,967.43 lakh). Above Corporate Guarantees have been given for business purpose. losi CCCCClosi losi losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Loan given to subsidiary (inclusive of interest) Trade Receivable Trade Payable Advance Receivable (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 ch 31, 2020 653.85 2,008.11 7,815.58 116.98 638.33 2,125.58 1,037.89 92.93 Pearl Global Industries Limited Annual Report 2020-21 225 Notes to standalone financial statements for the year ended March 31, 2021 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 (((((iiiiiiiiii))))) EEEEEnnnnnttttteeeeerprprprprprrrrrise ov ise ov s Sig ise ov (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Expenses paid by them on behalf of the Company Interest income losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi CCCCClosi losi losi Loan receivable (including interest) he year er er er er endendendendendeddddd he yea FFFFFooooor tr tr tr tr the yea he yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2.25 30.05 3.00 30.05 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 300.00 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 306.71 (((((iiiiiiiiiiiiiii))))) KKKKKeeeeey My My My My Maaaaannnnnaaaaagggggeeeeemememememennnnnt Pt Pt Pt Pt Peeeeersorsorsorsorsonnnnnnel (Knel (Knel (Knel (Knel (KMMMMMP)P)P)P)P) (Amount in ` Lakh, unless otherwise stated) PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs Remuneration paid EPF paid Expenses incurred on behalf of the Company 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 he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 173.81 0.52 39.58 3.50 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 301.50 1.04 30.09 1.60 (Amount in ` Lakh, unless otherwise stated) As AAs AAs AAs AAs Attttt ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs Attttt ch 31, 2020 ch 31, 2020 MMMMMaaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 - 0.92 sactioioioioion in in in in in tn tn tn tn the ohe ohe ohe ohe orrrrrdddddiiiiinnnnnaaaaarrrrryyyyy n 10% innnnnttttteeeeerrrrresesesesest it it it it in each t sactioioioioionnnnnsssss: R: R: R: R: Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrttttties hies hies hies hies haaaaavvvvviiiiinnnnng mo n 10% i n 10% i g morrrrre te te te te thhhhhaaaaan 10% i sact sact Disclosuuuuurrrrre of Me of Me of Me of Me of Maaaaattttteeeeerrrrriaiaiaiaial Tl Tl Tl Tl Trrrrraaaaannnnnsact g mo g mo sact sact n each trrrrraaaaannnnnsact n each t n each t Disclos Disclos C.C.C.C.C. Disclos n 10% i sact g mo sact n each t Disclos rse of busisisisisinesnesnesnesnessssss rse of bu rse of bu cccccououououourse of bu rse of bu y Coy Commmmmpppppaaaaannnnniesiesiesiesies y Coy Co ubsidiaiaiaiaiarrrrry Co ubsid ubsid (i) SSSSSubsid ubsid PPPPPaaaaarrrrrttttticuicuicuicuiculllllaaaaarsrsrsrsrs PPPPPuuuuurrrrrchchchchchaaaaase of g se of goooooooooodsdsdsdsds se of g se of g se of g Norp Knit Industries Limited Pearl Global Vietnam Co Ltd SSSSSaaaaale of g ds - raaaaaw mw mw mw mw maaaaattttteeeeerrrrriaiaiaiaialllll ds - r le of goooooooooods - r ds - r le of g le of g ds - r le of g Norp Knit Industries Limited Pearl Global Vietnam Co Ltd SSSSSaaaaale of g eadymmmmmade g ade g eady eady ds - r le of goooooooooods - r ds - r le of g le of g ade gaaaaarrrrrmememememennnnntttttsssss ade g ds - ready ade g eady ds - r le of g 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 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 19,319.41 5,021.67 77.76 360.44 9,132.42 - 55.39 46.06 128.20 10,156.16 1,569.98 430.75 213.71 10,108.19 395.28 1,019.36 49.02 89.38 226 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 ies y Commmmmpppppaaaaannnnnies ies y Coy Co y Co ubsidiaiaiaiaiarrrrry Co ubsid (i) SSSSSubsid ubsid ies (((((CCCCCooooonnnnntttttddddd.).).).).) ies ubsid 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 ExExExExExpppppeeeeennnnnses p he Commmmmpppppaaaaannnnnyyyyy he Co he Co 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 Co he Co f of t ses p Norp Knit Industries Limited DSSP Global Limited Pearl Global Far East Limited Pearl Global Vietnam Co Ltd Pearl Global (HK) Limited he Commmmmpppppaaaaannnnny oy oy oy oy on tn tn tn tn theiheiheiheiheir br br br br behehehehehaaaaalllllfffff he Co he Co ses paaaaaid bid bid bid bid by ty ty ty ty the Co ses p ses p ExExExExExpppppeeeeennnnnses p he Co ses p Norp Knit Industries Limited PT. Pinnacle Apparels 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 IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe Pearl Global Far East Limited ubsid ubsid t of innnnnvvvvvesesesesestttttmememememennnnnt it it it it in sn sn sn sn subsid t of i t of i IIIIImmmmmpppppaaaaaiiiiirrrrrmememememennnnnt of i ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid t of i Pearl Apparel Fashions Limited losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi losi CCCCClosi losi LLLLLoooooaaaaan gn gn gn gn giviviviviveeeeen tn tn tn tn to so so so so subsid e of innnnnttttteeeeerrrrresesesesest)t)t)t)t) e of i e of i ubsidiaiaiaiaiarrrrry (y (y (y (y (iiiiinclnclnclnclncluuuuusivsivsivsivsive of i ubsid ubsid e of i ubsid Pearl Global Far East Limited AAAAAmoumoumoumoumounnnnnt pt pt pt pt paaaaayyyyyababababablelelelele DSSP Global Limited Norp Knit Industries Ltd Pearl Global Vietnam Co Ltd AAAAAmoumoumoumoumounnnnnt rt rt rt rt reeeeeccccceiveiveiveiveivababababablelelelele Pearl Global Far East Limited PT. Pinnacle Apparels Pearl Global(HK) Ltd. Pearl Global Vietnam Co Ltd Pearl Grass Creations Ltd Vin Pearl Global Vietnam Limited SBUYS E-COMMERCE LIMITED 4.13 0.12 0.04 12.80 0.79 8.64 5.16 60.91 - - 37.86 64.61 14.60 32.15 33.91 653.85 269.72 6,063.18 1,482.69 26.79 5.16 2,042.68 - 16.82 1.23 32.41 14.22 - - - 37.84 15.84 - 0.14 29.06 1.00 36.33 50.81 10.98 30.11 27.24 638.33 184.32 853.57 - 45.32 0.84 1,913.52 156.14 8.53 1.23 - Pearl Global Industries Limited Annual Report 2020-21 227 Notes to standalone financial statements for the year ended March 31, 2021 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 he Commmmmpppppaaaaannnnnyyyyy he Co he Co f of t ses paaaaaid oid oid oid oid on bn bn bn bn behehehehehaaaaalllllf of t f of t ses p ses p f of the Co he Co f of t ses p PDS Multinational Fashions Limited IIIIInnnnnttttteeeeerrrrresesesesest it it it it incncncncncooooomememememe PDS Multinational Fashions Limited losinnnnng Bg Bg Bg Bg Baaaaalllllaaaaancncncncnceeeee losi CCCCClosi losi losi le (le (iiiiinclnclnclnclncludududududiiiiinnnnng ig ig ig ig innnnnttttteeeeerrrrresesesesest)t)t)t)t) le (le ( LLLLLoooooaaaaan rn rn rn rn reeeeeccccceiveiveiveiveivababababable ( PDS Multinational Fashions 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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2.25 30.05 3.00 30.00 300.00 306.71 (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 RRRRReeeeemmmmmuuuuunenenenenerrrrraaaaatttttioioioioion pn pn pn pn paaaaaididididid Mr. Pulkit Seth Ms. Shifalli Seth Mr. Uma Shankar Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg Mr. Kashmir Rathour Mr. Kumar Shailesh EEEEEPPPPPF pF pF pF pF paaaaaididididid Mr. Pulkit Seth Ms. Shifalli Seth Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg Mr. Kashmir Rathour ExExExExExpppppeeeeennnnnses i ses incuncuncuncuncurrrrrrrrrreeeeed od od od od on bn bn bn bn behehehehehaaaaalllllf of t ses i ses i he Commmmmpppppaaaaannnnnyyyyy he Co he Co f of t f of t f of the Co f of t ses i he Co Mr. Uma Shankar Mr. Vinod Vaish Mr. Sandeep Sabharwal Mr. Raghav Garg Mr. Kumar Shailesh DiDiDiDiDirrrrreeeeectctctctctooooors sit rs sit rs sit rs sittttttiiiiinnnnng Fg Fg Fg Fg Feeeeeeseseseses::::: rs sit Mr. Deepak Seth Mr. Anil Nayar Mr. Chittranjan Dua Mr. Abhishek Goyal Mrs Madhulika Bhupatkar Mr. Rajendra Aneja 83.40 34.75 14.95 - 9.26 - 20.34 11.12 0.11 0.11 - 0.14 - 0.16 4.71 13.88 6.04 13.36 1.58 0.50 0.60 0.60 0.60 0.60 0.60 165.00 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 228 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 sactioioioioionnnnns ws ws ws ws wititititith rh rh rh rh relelelelelaaaaattttteeeeed pd pd pd pd paaaaarrrrrtttttiesiesiesiesies sact s of trrrrraaaaannnnnsact sact s of t DDDDD..... TTTTTeeeeerrrrrmmmmms as as as as and cnd cnd cnd cnd cooooondndndndnditititititioioioioionnnnns of t s of t sact s of t All the transaction with the related parties were made on normal commercial terms and conditions. All outstanding balances at the year end are unsecured and interest free except the interest bearing loan, that are payable as per aforesaid terms and conditions. EEEEE..... Personal Gurantee given by Mr. Deepak Seth (Promoter Director) and Mr. Pulkit Seth (Managing Director) against the Borrowings (refer note no. 21) FFFFF..... 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 47 : 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 47 : DI E 47 : DI NONONONONOTTTTTE 47 : DI E 47 : 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 N 186 O , 2015 ANNNNND SD SD SD SD SECECECECECTTTTTIIIIIOOOOON 186 O , 2015 A , 2015 A N 186 O , 2015 A , 2013. , 2013. COCOCOCOCOMMMMMPPPPPAAAAANNNNNIIIIIEEEEES ACS ACS ACS ACS ACTTTTT, 2013. , 2013. , 2013. ubsidiaiaiaiaiarrrrriesiesiesiesies ubsid ubsid (a) LLLLLoooooaaaaannnnns ts ts ts ts to so so so so subsid ubsid l Globbbbbaaaaal Fl Fl Fl Fl Faaaaarrrrreaeaeaeaeassssst Lt Lt Lt Lt Liiiiimmmmmitititititeeeeeddddd ubsid ubsid LLLLLoooooaaaaan tn tn tn tn to wo wo wo wo whohohohoholllllly oly oly oly oly owwwwwnenenenened sd sd sd sd subsid l Glo l Glo ubsidiaiaiaiaiarrrrryyyyy: P: P: P: P: Peaeaeaeaearrrrrl Glo ubsid l Glo 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 carries an average rate of interest at 6.5% (2019-20: 6.5%) (Amount in ` Lakh, unless otherwise stated) he year er er er er endendendendendeddddd he yea he yea FFFFFooooor tr tr tr tr the yea he yea ch 31, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 485.10 485.10 497.57 497.57 (b) Investments made are given under the respective heads (Refer Note No. 8) (c) Corporate guarantees given are disclosed in Note 46. 11,578.00 24,541.03 11,728.05 32,092.23 E 48 : 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 48 : EV E 48 : EV NONONONONOTTTTTE 48 : EV E 48 : 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 (((((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 he yea Final dividend for the year 2019-20: ` Nil per share (2018-19: ` 3.00 per share) including dividend distribution tax of ` Nil lakh for the financial year 2019-20 (` 133.68 lakh for the financial year 2018-19) (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, 2021 ch 31, 2021 MMMMMaaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 - 783.56 (((((bbbbb))))) Due to the outbreak of COVID-19 Pandemic and subsequent lockdown ordered by the Central and State Government(s) in India, the manufacturing facilities of the Company remained suspended during the period of lockdown. The Company in compliance with necessary instructions and guidelines, resumed its operations post lifting of lockdown in a phased manner, while ensuring health and safety of all the stakeholders. This situation resulted in temporary disturbance in the economic activities through interruption in manufacturing processes, supply chain etc. during the year ended March 31, 2021. Further, the recent second wave of COVID 19 has resulted in partial lockdown/ restriction in various states. The impact of the pandemic is dependent on the situations as they evolve and hence may be different from that estimated as at the date of approval of these standalone financial statements. The Company is closely monitoring the impact of the aforesaid pandemic and believes that there will not be any adverse impact on the long term operations and performance of the Company. Pearl Global Industries Limited Annual Report 2020-21 229 Notes to standalone financial statements for the year ended March 31, 2021 (((((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 49 : LEAAAAASSSSSEEEEESSSSS E 49 : LE NONONONONOTTTTTE 49 : LE E 49 : LE E 49 : LE a) 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. 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 s a les CoCoCoCoCommmmmpppppaaaaannnnny ay ay ay ay as 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 and a corresponding lease liability of ` 3,201.46 has been recognized. The cumulative effect on transition in retained earnings is ` 190.61 (net of deferred tax of ` 102.38). 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." (b) 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. ue of assssssetsetsetsetsetsssss ue of a : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of a ue of a : mov RigRigRigRigRighhhhhttttt-----of-of-of-of-of-uuuuuse ase ase ase ase assssssetsetsetsetsetsssss: mov : mov ue of a : mov 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 ack as as as as as at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020 ch 31, 2020 ch 31, 2020 ck ack a GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock a ch 31, 2020 ch 31, 2020 Add: Additions during the year Less: Disposals / adjustments during the year ck As at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ck As a GrGrGrGrGrosososososs Bs Bs Bs Bs Blololololock As a ck As a ch 31, 2021 ch 31, 2021 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 Add: Depreciation charge for the year Less: Disposals/adjustments during the year As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 BBBBBuuuuuildildildildildiiiiinnnnngggggsssss 2,908.47 2,908.47 2,908.47 2,908.47 2,908.47 56.58 - 2,965.05 452.56 327.58 3,745.19 3,745.19 3,745.19 3,745.19 3,745.19 - 350.70 - 350.70 491.22 - 841.92 841.92 841.92 841.92 841.92 230 Pearl Global Industries Limited Annual Report 2020-21 Notes to standalone financial statements for the year ended March 31, 2021 ck :ck : NNNNNet Bet Bet Bet Bet Blololololock : ck :ck : As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 ch 31, 2021 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 In 2020-21, there were no impairment charges recorded for right-of-use assets. ue of reeeeecccccooooogggggnnnnniseiseiseiseised ld ld ld ld liabiabiabiabiabilililililitititititiesiesiesiesies ue of r : moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of r ue of r LLLLLeaeaeaeaeasessessessesses: mov : mov : mov ue of r : mov As At April 01, 2020 Add: Additions during the year Add: Interest expense on lease liabilities Less: Repayment of lease liabilities ch 31, 2021 ch 31, 2021 As AAs AAs AAs AAs At Mt Mt Mt Mt Maaaaarrrrrch 31, 2021 ch 31, 2021 ch 31, 2021 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 2,903.27 2,903.27 2,903.27 2,903.27 2,903.27 2,614.35 2,614.35 2,614.35 2,614.35 2,614.35 3,049.75 452.56 304.66 (589.23) 3,217.75 3,217.75 3,217.75 3,217.75 3,217.75 2,836.18 381.57 3,217.75 3,217.75 3,217.75 3,217.75 3,217.75 The maturity analysis of lease liabilities is given in Note 43 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 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 ` 770.91 Lakh (March 31, 2020: ` 980.53 Lakh) has been recognised and included under Other Income. (Refer Note No. 28) E 50 : E 50 : NONONONONOTTTTTE 50 : E 50 : E 50 : 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 51 : E 51 : E 51 : E 51 : E 51 : Figures have been rounded off to the nearest lakhs upto two decimal places except otherwise stated. l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd l Glo rs of Peaeaeaeaearrrrrl Glo l Glo rs of P d of Dirrrrreeeeectctctctctooooors of P rs of P d of Di f of Boooooaaaaarrrrrd of Di d of Di f of B r & on bn bn bn bn behehehehehaaaaalllllf of B f of B r & o FFFFFooooor & o r & o l Glo rs of P d of Di f of B r & o (P(P(P(P(Puuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh))))) Managing Director DIN 00003044 (N(N(N(N(Naaaaarrrrreeeeendrndrndrndrndra Sa Sa Sa Sa Sooooommmmmaaaaannnnniiiii))))) Chief Finance Officer M. No. 092155 (D(D(D(D(Deeeeeeeeeepppppaaaaak Sk Sk Sk Sk Setetetetethhhhh))))) Chairman DIN 00003021 (M(M(M(M(Maaaaayyyyyaaaaannnnnk Jk Jk Jk Jk Jaaaaaiiiiinnnnn))))) Company Secretary M. No. ACS - 26620 Place of Signature: Gurugram Date: June 21, 2021 Pearl Global Industries Limited Annual Report 2020-21 231 Notes .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. 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.............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. .............................................................................................................................................................. Pearl Global Industries Limited Registered Office C-17/1, Paschimi Marg, Vasant Vihar, New Delhi - 110057 CIN: L74899DL1989PLC036849 Corporate Office “Pearl Tower” Plot No. 51, Sector-32, Gurugram-122001 (Haryana) 

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