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Pearl Global Limited

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FY2021 Annual Report · Pearl Global Limited
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ANNUAL

REPORT 2021

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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:

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1. Norp Knit Industries Limited

Subsidiary

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Mr. Deepak Seth
Mr. Pulkit Seth
Mr. Anil Nayar

2. PT Pinnacle Apparels

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth

3. Pear Global (HK) Limited

Wholly owned Mr. Deepak Seth
subsidiary

Mr. Pulkit Seth
Mr. Abhishek Goyal

4. Pearl Global Fareast Limited

Wholly owned Mr. Deepak Seth
subsidiary

Mr. Pulkit Seth

5. DSSP Global Limited

Step down
subsidiary

Mr. Deepak Seth
Mr. Pulkit Seth

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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...)

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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
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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:

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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
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(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)
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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

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Pearl Tower, Plot No.51, Sector-32
Gurugram - 122 001, Haryana (India)

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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

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The Company has obtained credit ratings from ICRA Limited. Credit ratings of the Company as at the end of
the financial year 2020-21 are given below:

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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:

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Audit Fee
Other Services
Reimbursement of Expenses
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he finnnnnaaaaancianciancianciancial yea
l yea
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l yearrrrr
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ch 31, 2021
ch 31, 2021
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ch 31, 2021
ch 31, 2021
17.92
11.65
 0.75
30.32
30.32
30.32
30.32
30.32

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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
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cifie
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Discretionary requirements are as follows:
A.

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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
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rs  Rig
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The Company’s Financial Results, Shareholding Pattern and official news releases are displayed on the Company’s
website www.pearlglobal.com/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.

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Presently, the Company has separate post of Non-executive Chairman and Managing Director.

E.

g of innnnnttttteeeeerrrrrnnnnnaaaaal al al al al audududududitititititooooorrrrr-The internal auditor reports to Audit Committee as and when required.
g of i
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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.

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CoCoCoCoCommmmmpppppllllliaiaiaiaiancncncncnce ce ce ce ce ceeeeerrrrrtttttificificificificificaaaaattttte oe oe oe oe on Co
n Con Co
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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
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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:

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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.

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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.

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India
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Indonesia
Vietnam
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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)))))

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Compliances in all our facilities are directly linked
to the corporate office, which drives all strategy of
social compliance, new initiatives and sustainability
directly from the top. The corporate compliance
acts as a communication hub and control tower for
all  our  customers,  providing  them  with  a  single
point  of  contact.  Strong  compliances  are
established and maintained in all our facilities in
line  with  international  standards  and  several
channels are available in each facility to address any
concerns.

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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.

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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.

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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:

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India
Bangladesh
Hong Kong
Others

(` in Crore)

RRRRReeeeevvvvveeeeennnnnueueueueue
771.66
565.34
782.59
124.33

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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.

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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.

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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:

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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

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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

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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
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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
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ses shou
le 2: B
le 2: B
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e safe a
nd se
ide g
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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
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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
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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
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rs,  es
le  4:  B
ses  shou
ld  r
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ttttthose w
hose w
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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.

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ld r
ld r
ses shou
le 5: Buuuuusisisisisinesnesnesnesnesses shou
ses shou
le 5: B
PPPPPrrrrriiiiincincincincincippppple 5: B
le 5: B
ses should r
ld r
ses shou
le 5: B

1. Does the policy of the company on human rights cover only the
company or extend to the Group / Joint Ventures / Suppliers /
Contractors /NGOs / Others?

2. How many stakeholder complaints have been received in the past
financial year and what percent was satisfactorily resolved by the
management?

Yes. The policy is expected to be adhered by the other
stakeholders.

No complaints relating to human rights were received
during the financial year.

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e effo
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ct, a
ld r
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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
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ses, wses, whehehehehen en en en en ennnnngggggaaaaagggggeeeeed id id id id in in in in in innnnnflflflflflueueueueuencincincincincinnnnng pub
, shou
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ld do so i
ld do so in a rn a rn a rn a rn a resesesesespppppooooonnnnnsibsibsibsibsiblelelelele
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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
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PPPPPuuuuulllllkkkkkit Sit Sit Sit Sit Setetetetethhhhh
Managing Director
DIN 00003044

Certification by Managing Director and Chief Financial
Officer of Pearl Global Industries Limited

We, Pulkit Seth, Managing Director and 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
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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.

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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
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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.

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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)))))
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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

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We have audited the accompanying consolidated financial statements of PPPPPeaeaeaeaearrrrrl  Glo
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referred to as “ the Holding Company”) ) ) ) ) and its Subsidiaries (the Holding Company and its subsidiaries together referred
as “the Group”), which comprise the Consolidated Balance Sheet as at March 31, 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.

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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.

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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.

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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.

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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.

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The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the
information included in the annual report, but does not include the consolidated financial statements and our auditor’s
report thereon. 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.

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The Holding Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect
to preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position,
consolidated  financial  performance,  consolidated  total  comprehensive  income,  consolidated  changes  in  equity  and
consolidated cash flows of the Group in accordance with the Ind AS and other accounting principles generally accepted in
India, including the Ind AS specified under Section 133 of the Act. The respective Board of Directors of the companies
included in the Group are responsible for maintenance of the adequate accounting records in accordance with the provisions
of the Act for safeguarding the assets 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.

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Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.

As  part  of  an  audit  in  accordance  with  SAs,  we  exercise  professional  judgment  and  maintain  professional  skepticism
throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is  higher  than  for  one  resulting  from  error,  as  fraud  may  involve  collusion,  forgery,  intentional  omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Holding Company and Subsidiaries which are incorporated in India has adequate internal
financial controls with reference to the financial statements in place and the operating effectiveness of such controls.

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.

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(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.

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1. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the auditor on a
separate financial statement and the other information of the subsidiaries, as noted in the ‘Other 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.

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a & Co
a & Co
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a & Co
Chartered Accountants,
Firm’s Registration Number 008352N

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(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
k Ag
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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

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In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March
31, 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.

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l Co
l Co
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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.

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Our responsibility is to express an opinion on the internal financial controls with reference to these consolidated financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to
be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate  internal  financial  controls  with  reference  to  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.

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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.

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l Co
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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.

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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.

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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

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I.I.I.I.I.

AsAsAsAsAssetsetsetsetsetsssss
1.1.1.1.1.

2.2.2.2.2.

Property, plant and equipment

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(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
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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
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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
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Non - controlling interest
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2.2.2.2.2.

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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
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(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
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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

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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
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(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

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(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
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Items that will be reclassified to profit or loss
(a)
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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
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he yea
he year er er er er endendendendendeddddd
he yea
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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
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f of B
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d of Di
d of Di
rs of P
l Glo
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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
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Pearl Global Industries Limited     Annual Report 2020-21

95

Consolidated Statement of Cash Flow
for the year ended March 31, 2021

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CCCCCaaaaash Fsh Fsh Fsh Fsh Flololololows Fws Fws Fws Fws Frrrrrooooom Opm Opm Opm Opm Opeeeeerrrrraaaaatttttiiiiinnnnng Ag Ag Ag Ag Actctctctctivivivivivitititititiesiesiesiesies
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ofit befoefoefoefoeforrrrre exe exe exe exe exccccceeeeeptptptptptioioioioionnnnnaaaaal itl itl itl itl iteeeeemmmmms as as as as and tnd tnd tnd tnd taaaaaxxxxx
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AAAAAdjdjdjdjdjuuuuussssstttttmememememennnnnttttts fos fos fos fos forrrrr:::::

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he year er er er er endendendendendeddddd
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he yea
he year er er er er endendendendendeddddd
he yea
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he yea
he yea
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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

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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

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Tax paid on dividend
Direct Tax paid (Net of Refunds)

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sh I
sh I
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) 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.)

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(Amount in ` Lakh, unless otherwise stated)
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he yea
FFFFFooooor tr tr tr tr the yea
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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

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Purchase of property, plant and equipment (including ROU, net of Lease Liabilities)
Sale proceeds of property, plant and equipment
(Increase)/Decrease in Capital work in progress
Purchase of Investment Properties
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
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( C )
( C )
( C )
( C )
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sh Equuuuuivivivivivaaaaalelelelelennnnnttttts (s (s (s (s (A+B+C)
sh Eq
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NNNNNet Iet Iet Iet Iet Incncncncncrrrrreaeaeaeaease (Dse (Dse (Dse (Dse (Deeeeecccccrrrrreaeaeaeaease) I
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A+B+C)
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Opening Balance of Cash and Cash Equivalents
sh Equuuuuivivivivivaaaaalelelelelennnnnt (Nt (Nt (Nt (Nt (Nototototote Ne Ne Ne Ne Nooooo. 17)
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 (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)
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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
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CCCCChhhhhaaaaarrrrrttttteeeeerrrrreeeeed Ad Ad Ad Ad Accccccccccououououounnnnntttttaaaaannnnntttttsssss
Firm’s Registration Number 008352N
(D(D(D(D(Deeeeeeeeeepppppaaaaak Ag
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k Ag
Partner
Membership Number 073696

3

Place of Signature: New Delhi
Date: June 21, 2021

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(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
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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

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E  2:  BASSSSS IIIII S  OS  OS  OS  OS  OF   PF   PF   PF   PF   PRRRRR EEEEE PPPPPAAAAA RRRRR AAAAATTTTT IIIII OOOOO N  AN  AN  AN  AN  ANNNNN DDDDD
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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.

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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.

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-

In  view  of  Ind  As-“21”  ‘The  effects  of  Changes  in
Foreign  Exchange  Rates’,  the  operations  of  all  the

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a)a)a)a)a)

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In preparing these financial statements, Management has
made judgements, estimates and assumptions that affect
the application of the Group’s accounting policies and the
reported  amounts  of  assets,  liabilities,  income  and

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.

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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.

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sific

The  Group  presents  assets  and  liabilities  in  the  balance
sheet based on current/ non-current classification.

AsAsAsAsAssetsetsetsetsetsssss:::::

An asset is treated as current when it is:

a) Expected  to  be  realised  or  intended  to  be  sold  or

consumed in normal operating cycle.

b) Held primarily for the purpose of trading

c) Expected to be realised within twelve months after

the reporting period, or

d) Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

• 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

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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.

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Property, plant and equipment and capital work in progress
are  stated  at  cost  less  accumulated  depreciation  and
accumulated impairment losses, if any. Such cost includes
expenditure that is directly attributable to the acquisition
of the asset. The cost of self-constructed assets includes
the cost of materials and direct services, any other costs

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.

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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.

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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.

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On transition to Ind AS, the Group has elected to continue
with the carrying value of all its intangible assets recognized
as at April 01, 2016, measured as per the previous GAAP,
and  use  that  carrying  value  as  the  deemed  cost  of  such
intangible assets.

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t  Expppppeeeeendndndndndititititituuuuurrrrreeeee : : : : :  Subsequent  expenditure  is
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capitalised  only  when  it  increases  the  future  economic
benefits embodied in the specific asset to which it relates.
All other expenditure is recognized in Statement of Profit
and Loss as incurred.

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.

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Borrowing costs consists of interest and amortization of
ancillary costs that an entity incurs in connection with the
borrowing of funds. Borrowing costs directly attributable
to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalised as part of
the cost of the asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing costs consist
of  interest  and  other  costs  that  an  entity  incurs  in
connection with the borrowing of funds. Borrowing cost
also includes exchange differences to the extent regarded
as an adjustment to the borrowing costs.

Borrowing costs consists of interest and amortization of
ancillary costs that an entity incurs in connection with the
borrowing of funds. Borrowing costs directly attributable
to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get
ready for its intended use.

sactioioioioionnnnns as as as as and Tnd Tnd Tnd Tnd Trrrrraaaaannnnnslslslslslaaaaatttttioioioioionnnnnsssss
sact
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sact
sact

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The  Consolidated  financial  statements  are  presented  in
Indian  Rupees  (`).  Items  included  in  the  Consolidated
Financial statements of the Group are recorded using the
currency of the primary economic environment in which
the  Group  operates  (the  ‘functional  currency’).  All  the
financial information presented in ‘ except where otherwise
stated and the values are rounded to nearest lakh upto two
decimal places.

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sact
TTTTTrrrrraaaaannnnnsact
sact
sact

Transactions in foreign currencies are translated into the
functional currency of the Company at the exchange rates
at the date the transactions or an average rate if the average
rate  approximates  the  actual  rate  at  the  date  of  the
transaction.

Monetary  assets  and  liabilities  denominated  in  foreign
currencies are translated into the functional currency at
the  exchange  rate  at  the  reporting  date.Non-monetary
assets  and  liabilities  that  are  measured  at  fair  value  in  a
foreign  currencies  are  translated  into  the  functional
currency  at  the  exchange  rate  when  the  fair  value  was
determined. Non-monetary assets and 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.

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The  Group  derives  revenue  primarily  from  export  of
manufactured and traded goods.

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ue frue fr
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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.

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cific r
cific r
SSSSSpppppeeeeecific r
cific r

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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.

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side
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VVVVVaaaaarrrrriabiabiabiabiable Co
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side
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If  the  consideration  in  a  contract  includes  a  variable
amount, the Group estimates the amount of consideration
to  which  it  will  be  entitled  in  exchange  for  transferring
the goods to the customer. The variable consideration is
estimated at contract inception and constrained until it is
highly probable that a significant revenue reversal in the
amount  of  revenue  recognised  will  not  occur  when  the
associated uncertainty with the variable consideration is
subsequently resolved.

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g Cog Co
g Co
SigSigSigSigSignnnnnificificificificificaaaaannnnnt Ft Ft Ft Ft Fiiiiinnnnnaaaaancincincincincinnnnng Co

Generally, the Group does not receive short term or long
term  advances  from  its  customers  except  in  certain
scenarios. Using the practical expedient in Ind AS 115, the
Group  does  not  adjust  the  promised  amount  of
consideration  for  the  effects  of  a  significant  financing
component  if  it  expects,  at  contract  inception,  that  the
period between the transfer of promised good or service
to the customer and when the customer pays for good or
service will be one year or less. The Group does not expect
to have any contracts where the period between the transfer
of  promised  goods  and  services  to  the  customer  and
payment  by  the  customer  exceeds  one  year.  As  a
consequence,  it  does  not  adjust  any  of  the  transaction
prices for the time value of money.

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act b
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act b
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Contract assets

A contract asset is the right to consideration in exchange
for  goods  or  services  transferred  to  the  customer.  If  the
Company performs by transferring goods or services to a
customer before the customer pays consideration or before
payment is due, a contract asset is recognised for the earned
consideration that is conditional.

Trade receivables

A receivable represents the 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)))))

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i)

ii)

iii)

Inventories  of  finished  goods  manufactured  by  the
Group are valued style-wise and at lower of cost and
estimated net realizable value. Cost includes material
cost on weighted average basis and appropriate share
of  overheads  incurred  in  bringing  them  to  their
present  location  and  condition.  In  the  case  of
manufactured inventories and work-in-progress, cost
includes  an  appropriate  share  of  fixed  production
overheads based on normal operating capacity.

Inventories of finished goods (traded) are valued at
lower  of  procurement  cost  (FIFO  method)  or
estimated net realizable value.

Inventories  of  raw  material,  work  in  progress,
accessories  &  consumables  are  valued  at  cost
(weighted  average  method)  or  at  estimated  net
realizable value whichever is lower. WIP cost includes
appropriate  portion  of  allocable  overheads.  Raw
materials  and  other  supplies  held  for  use  in  the
production of finished products are not written down
below cost except in cases where material prices have
declined  and  it  is  estimated  that  the  cost  of  the
finished products will exceed their net realisable value.

iv) Net realizable value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and estimated costs necessary to make
the sale. The comparison of cost and net realizable
value  is  made  on  a  item  by  item  basis.  Obsolete  or
slow moving inventories are identified from time to
time and a provision is made for such inventories as
appropriate on periodic basis.

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.

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s a les
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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:

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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.

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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.

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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
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nd  lea
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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.

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s a les
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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
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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.

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A defined contribution plan is a post-employment benefit
plan under which an entity pays fixed contributions to a
statutory authority and will have no legal or constructive
obligation to pay further amounts.

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.

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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
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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.

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Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event,
it  is  probable  that  an  outflow  of  resources  embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation.  When  the  Group  expects  some  or  all  of  a
provision  to  be  reimbursed,  the  reimbursement  is
recognised  as  a  separate  asset,  but  only  when  the
reimbursement is virtually certain.

The  expense  relating  to  a  provision  is  presented  in  the
statement of profit and loss, net of any reimbursement. If
the effect of the time value of money is material, provisions
are  discounted  using  a  current  pre-tax  rate  that  reflects,
when appropriate, the risks specific to the liability. The
unwinding of discount is recognised in the statement of
profit and loss as a finance cost.Provisions are reviewed at
the end of each reporting period and adjusted to reflect
the current best estimate. If it is no longer probable that
an  outflow  of  resources  would  be  required  to  settle  the
obligation, the provision is reversed.

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A  financial  instrument  is  a  contract  that  gives  rise  to  a
financial  asset  for  one  entity and  a  financial  liability  or
equity instrument for another entity.Financial assets and
financial  liabilities  are  recognised  when  the  Group
becomes  a  party  to  the  contractual  provisions  of  the
instruments.

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A financial asset is initially recognised at fair value.
In case of financial assets which are recognised at fair
value through profit and loss (FVTPL), its transaction
cost are recognised in the statement of profit and loss.
In other cases, the transaction cost are attributed to
the acquisition value of the financial asset.

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For purposes of subsequent measurement, financial

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:

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Financial Asset carried at amortised cost

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-

-

-

Financial  Asset  at  fair  value  through  other
comprehensive income (FVTOCI)

Financial Asset at fair value through profit and
loss (FVTPL)

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A  financial  asset  is  subsequently  measured  at
amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest
on the principal amount outstanding.

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A financial asset is subsequently measured at fair value
through  other  comprehensive  income  if  it  is  held
within a business model whose objective is achieved
by both collecting contractual cash flows and selling
financial  assets  and  the  contractual  terms  of  the
financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on
the principal amount outstanding.

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A financial asset which is not classified in any of the
above categories are subsequently fair valued through
profit or loss.

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A  financial  asset  (or,  where  applicable,  a  part  of  a
financial asset) is primarily derecognised 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.

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For purposes of subsequent measurement, financial
liabilities are classified in two categories:

-

-

Financial liabilities at amortised cost

Financial liabilities at fair value through profit
and loss (FVTPL)

A financial liability is classified as at FVTPL if it is
classified as held for trading, or it is a derivative or it
is designated as such as initial recognition. Financial
liabilities at FVTPL are measured at fair value and
net gains and losses, including any interest expense,
are  recognised  in  the  Statement  of  Profit  and  loss.
Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest  expense  is  recognised  in  the  Statement  of
Profit and loss.

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A  financial  liability  is  derecognised  when  the
obligation  under  the  liability  is  discharged  or
cancelled  or  expires.  When  an  existing  financial
liability is replaced by another from the same lender
on  substantially  different  terms  or  the  terms  of  an
existing liability are substantially modified, such an
exchange  or  modification  is  treated  as  the  de-
recognition  of  the  original  liability  and  the
recognition of a new liability. The difference in the
respective  carrying  amounts  is  recognised  in  the
statement of profit and loss.

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Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if there
is  a  currently  enforceable  legal  right  to  offset  the
recognized amounts and there is an intention to settle
on  a  net  basis,  to  realize  the  assets  and  settle  the
liabilities simultaneously

Pearl Global Industries Limited     Annual Report 2020-21

107

Notes
to consolidated financial statements for the year ended March 31, 2021

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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.

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With  effect  from  April  2019,  the  Group  adopted
Hedge  Accounting.The  derivatives  that  are
designated as hedging instrument under Ind AS 109
to  mitigate  risk  arising  out  of  foreign  currency
transactions  are  accounted  for  as  cash  flow  hedges.
The  Group  enters  into  hedging  instruments  in
accordance with policies as approved by the Board of
Directors with written principles which is consistent
with the risk management strategy of the Group.

The  hedge  instruments  are  designated  and
documented  as  hedges  at  the  inception  of  the
contract.  The  effectiveness  of  hedge  instruments  is
assessed and measured at inception and on an ongoing
basis. When a derivative is designated as a cash flow
hedging instrument, the effective portion of changes
in the fair value of the derivative is recognized in OCI,
e.g., cash flow hedging reserve and accumulated in the
cash flow hedging reserve. Any ineffective portion of
changes in the fair value of the derivative is recognized
immediately in the statement of profit and loss. The
amount accumulated is retained in cash flow hedge
reserve and reclassified to profit or loss in the same
period  or  periods  during  which  the  hedged  item
affects the statement of profit and loss.

If the hedging instrument no longer meets the criteria
for  hedge  accounting,  then  hedge  accounting  is
discontinued prospectively. If the hedging instrument
is  terminated  or  exercised  prior  to  its  maturity/
contractual term, the cumulative gain or loss on the
hedging instrument recognized in cash flow hedging
reserve till the period the hedge was effective remains
in  cash  flow  hedging  reserve  until  the  forecasted
transaction  occurs.  The  cumulative  gain  or  loss
previously recognized in the cash flow hedging reserve

is reclassified to the Statement of Profit and Loss upon
the occurrence of the related forecasted transaction.
If the forecasted transaction is no longer expected to
occur,  then  the  amount  accumulated  in  cash  flow
hedging  reserve  is  reclassified  immediately  in  the
statement of profit and loss.

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The Group measures the expected credit loss associated
with its assets based on historical trend, industry practices
and the business environment in which the entity operates
or  any  other  appropriate  basis.  The  impairment
methodology applied depends on whether there has been
a significant increases in credit risk. Expected credit loss is
the  weighted  average  of  the  difference  between  all
contractual  cash  flows  that  are  due  to  the  Group  in
accordance with the contracts and all the cash flows that
the  Group  expects  to  receive,  discounted  at  original
effective interest rate with the respective risk of defaults
occuring as the weights.

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t of no
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The carrying amounts of the Group’s non-financial assets,
other than deferred tax assets, are reviewed at the end of
each reporting period to determine whether there is any
indication  of  impairment.  If  any  such  indication  exists,
then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit
(‘CGU’) is the greater of its value in use or its fair value
less costs to sell.  In assessing value in use, the estimated
future cash flows are discounted to their present value using
a  pre-tax  discount  rate  that  reflects  current  market
assessments  of  the  time  value  of  money  and  the  risks
specific  to  the  asset  or  CGU.  For  the  purpose  of
impairment  testing ,  assets  that  cannot  be  tested
individually are grouped together into the smallest group
of assets that generates cash inflows from continuing use
that are largely independent of the cash inflows of other
assets or groups of assets (‘CGU’).

An impairment loss is recognized, if the carrying amount
of an asset or its CGU exceeds its estimated recoverable
amount and is recognised in statement of profit and loss.

Impairment losses recognised in prior periods are assessed
at end of each reporting period for any indications that
the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s carrying

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.

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Fair value is the price that would be received to sell an asset
or  paid  to  transfer  a  liability  in  an  orderly  transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes
place either:

(a)

In the principal market for the asset or liability, or

(b) In  the  absence  of  a  principal  market,  in  the  most

advantageous market for the asset or liability

A fair value measurement of a non-financial asset takes into
account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.

The Group uses valuation techniques that are appropriate
in  the  circumstances  and  for  which  sufficient  data  are
available  to  measure  fair  value,  maximising  the  use  of
relevant  observable  inputs  and  minimising  the  use  of
unobservable inputs.

All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the
lowest  level  input  that  is  significant  to  the  fair  value
measurement as a whole:

Level  1  -  Quoted  (unadjusted)  market  prices  in  active
markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the financial
statements  on  a  recurring  basis,  the  Group  determines
whether  transfers  have  occurred  between  levels  in  the
hierarchy  by  re-assessing  categorisation  (based  on  the
lowest  level  input  that  is  significant  to  the  fair  value
measurement  as  a  whole)  at  the  end  of  each  reporting
period.

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Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation  authorities.  The  tax  rates  and  tax  laws  used  to
compute  the  amount  are  those  that  are  enacted  or
substantively enacted, at the reporting date.

Current income tax relating to items recognized outside
profit or loss is recognized outside profit or loss (either in
other comprehensive income (OCI) or in equity). Current
tax items are recognized in correlation to the underlying
transaction  either  in  OCI  or  directly  in  equity.
Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes
provisions where appropriate.

Current tax assets are offset against current tax liabilities
if, and only if, a legally enforceable right exists to set off
the recognised amounts and there is an intention either to
settle on a net basis, or to realise the asset and settle the
liability simultaneously.

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"Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted
at the reporting date.“

“Deferred  tax  assets  are  recognised  for  all  deductible
temporary  differences,  the  carry  forward  of  unused  tax
credits and any unused tax losses. Deferred tax assets are
recognised  to  the  extent  that  it  is  probable  that  taxable
profit  will  be  available  against  which  the  deductible
temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised."

"Deferred tax assets and liabilities are measured at the tax
rates  that  are  expected  to apply  to  the  period  when  the
asset is realized or the liability is settled, based on tax rates
(and  tax  laws)  that  have  been  enacted  or  substantively
enacted  at  the  balance  sheet  date.  Tax  relating  to  items
recognized directly in equity/other comprehensive income
is recognized in respective head and not in the statement
of profit & loss.“

“The carrying amount of deferred tax assets is reviewed at
each balance sheet date and is adjusted to the extent that
it is no longer probable that sufficient taxable profit will
be available to allow all or part of the asset to be recovered."

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). "

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Minimum Alternate Tax (MAT) paid in the year is charged
to  the  Statement  of  Profit  and  Loss  as  current  tax.The
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).

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Investment in subsidiaries

There is an option to measure investments in subsidiaries
at cost in accordance with Ind AS 27 at either:

(a) Fair value on date of transition; or

(b) Previous GAAP carrying values

The Group has decided to use the previous GAAP carrying
values to value its investments in its subsidiaries as on the
date of transition, April 01, 2016.

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Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an  original  maturity  of  three  months  or  less,  which  are
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and
cash  equivalents  consist  of  cash  balance  on  hand,  cash
balance at banks and short-term deposits, as defined above,

net of outstanding bank overdrafts as they are considered
an integral part of the Group’s cash management.

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In determining earnings per share, the 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.

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Grants from the government are recognised at their fair
value where there is reasonable assurance that the grant
will  be  received  and  the  Company  will  comply  with  all
attached conditions.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to Profit and Loss on
a straight - line basis over the expected lives of related assets
and presented within other income.

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A contingent liability exists when there is a possible but
not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or a
present  obligation  whose  amount  cannot  be  estimated
reliably. Contingent liabilities do not warrant provisions,
but  are  disclosed  unless  the  possibility  of  outflow  of
resources  is  remote.  Contingent  assets  are  neither
recognised  nor  disclosed  in  the  financial  statements.
However, contingent assets are assessed continually and if
it is virtually certain that an inflow of economic benefits
will arise, the asset and related income are recognised in
the period in which the change occurs.

110

Pearl Global Industries Limited     Annual Report 2020-21

Notes
to consolidated financial statements for the year ended March 31, 2021

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Research  and  development  costs  that  are  in  nature  of
tangible assets and are expected to generate probable future
economic  benefits  are  capitalised  as  tangible  assets.
Revenue  expenditure  on  research  and  development  is
charged to the statement of profit and loss in the year in
which it is incurred.

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

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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)

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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
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act of t
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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
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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
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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
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Pearl Global Fareast Limited
Pearl Global (HK) Limited
Norp Knit Industries Limited

rseas (Is (Is (Is (Is (Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct)
rsea
rsea
ct/Indndndndndiiiiirrrrreeeeect)ct)ct)ct)ct) OOOOOvvvvveeeeersea
ubsidiaiaiaiaiarrrrry (Di
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ct/I
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y (Dirrrrreeeeect/I
y (Di
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ubsid
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A & B Investment Limited
Pearl Global F.Z.E.
DSSP Global Limited
Pearl Global Vietnam Company Limited
Pearl Global(Chang Zhou) Textile Technology Company Limted
Pearl Grass Creations Limited (Formerly known as Pearl Tiger HK Limited)
PGIC Investment Limited
Prudent Fashions Limited
PT Pinnacle Apparels (Formerly known as PT Norwest Industry)
Vin Pearl Global Vietnam Limited
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/(
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s i.e.e.e.e.e.
s i.
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et As
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NNNNNet As
s i.
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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
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NNNNNaaaaame of t
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As a % of
As a % of
As a % of
As a % of
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cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
net  assssssetsetsetsetsetsssss
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net  a
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AAAAAmoumoumoumoumounnnnnttttt

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cccccooooonnnnnsososososolllllidididididaaaaattttteeeeeddddd
PPPPPrrrrrofitofitofitofitofit

AAAAAmoumoumoumoumounnnnnttttt

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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/(
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s i.e.e.e.e.e.
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s i.
s i.
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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
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PPPPPrrrrrofitofitofitofitofit

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PPPPPaaaaarrrrreeeeennnnnttttt:::::
Pearl Global Industries Limited
ubsidiaiaiaiaiarrrrryyyyy:::::
ubsid
ubsid
SSSSSubsid
ubsid
- Indian

Pearl Global Kausal Vikas Limited
Pearl Apparel Fashions Limited
SBUYS E-Commerce Limited

- 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

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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
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rs of P
d of Dirrrrreeeeectctctctctooooors of P
rs of P
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(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
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We have audited the accompanying standalone     financial statements of PPPPPeaeaeaeaearrrrrl Glo
l Globbbbbaaaaal Il Il Il Il Indndndndnduuuuussssstttttrrrrries Lies Lies Lies Lies Liiiiimmmmmitititititeeeeeddddd (“the Company”),
l Glo
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
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We conducted our audit of the standalone     financial statements in accordance with the Standards on Auditing (SAs) specified
under  section  143(10)  of  the  Act.  Our  responsibilities  under  those  Standards  are  further  described  in  the  Auditor’s
Responsibilities for the Audit of the Standalone     Financial Statements section of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the
ethical requirements that are relevant to our audit of the standalone     financial statements under the provisions of the Act
and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion on the standalone     financial statements.

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.

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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
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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:

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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
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• 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.

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The  Company’s  Board  of  Directors  is  responsible  for  the  other  information.  The  other  information  comprises  the
information included in the annual report, but does not include the standalone     financial statements and  our auditor’s
report thereon. 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
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The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation  of  these  standalone     financial  statements  that  give  a  true  and  fair  view  of  the  financial  position,  financial
performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind
AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,

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
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Our objectives are to obtain reasonable assurance about whether the standalone     financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone     financial statements.

As  part  of  an  audit  in  accordance  with  SAs,  we  exercise  professional  judgment  and  maintain  professional  skepticism
throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the standalone     financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is  higher  than  for  one  resulting  from  error,  as  fraud  may  involve  collusion,  forgery,  intentional  omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with reference to financial statements in place and the operating
effectiveness of such controls.

•

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

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t of evvvvveeeeen dn dn dn dn daaaaattttte oe oe oe oe on tn tn tn tn the she she she she stttttaaaaandndndndndaaaaalololololone fine fine fine fine finnnnnaaaaancianciancianciancial sl sl sl sl stttttaaaaattttteeeeemememememennnnnttttts of P
s of P
t of e
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t of e
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The Annexure referred to in independent Auditors’ Report to the members of the Company on the standalone financial
statements for the year ended March 31, 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:

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a)
b)

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Income Tax Act, 1961
Income Tax Act, 1961

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Income Tax Demand
Income Tax Demand

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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

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Appeal Pending before ITAT
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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

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We have audited the internal financial controls with reference to financial statements of Pearl Global Industries Limited
(“(“(“(“(“ttttthe Co
he Commmmmpppppaaaaannnnnyyyyy”)”)”)”)”) as of March 31, 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.

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l Co
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The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal
control with reference to financial statements criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Act.

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Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over  Financial  Reporting  (the  “Guidance  Note”)  and  the  Standards  on  Auditing,  issued  by  ICAI  and  deemed  to  be
prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants
of India. Those Standards and the Guidance note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial
statements was established & maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with
reference to financial statements included obtaining an understanding of internal financial controls with reference to financial
statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the Company’s internal financial controls system with reference to financial statements.

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l Co
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g of I
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A company’s internal financial control with reference to financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal financial control with reference to financial
statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that  transactions  are  recorded  as  necessary  to  permit  preparation  of  financial  statements  in  accordance  with  generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention

Pearl Global Industries Limited     Annual Report 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.

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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
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Because  of  the  inherent  limitations  of  internal  financial  controls  with  reference  to  financial  statements,  including  the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial
statements to future periods are subject to the risk that the internal financial control with reference to financial statements
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.

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In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to
financial statements and such internal financial controls with reference to financial statements were operating effectively as
at March 31, 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

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NNNNNooooo.....

(Amount in ` Lakh, unless otherwise stated)

As AAs AAs AAs AAs Attttt
ch 31, 2021
ch 31, 2021
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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

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(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
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CCCCCuuuuurrrrrrrrrreeeeennnnnt at at at at assssssetsetsetsetsetsssss
(a)
(b)

II.

Equity share capital

(c) Other current assets
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TTTTTotototototaaaaal  al  al  al  al  assssssetsetsetsetsetsssss
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EqEqEqEqEquuuuuititititityyyyy
(a)
(b) Other equity
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NNNNNooooonnnnn- 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
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(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
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g act
sh i
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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
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sh a
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se (
NNNNNet Iet Iet Iet Iet Incncncncncrrrrreaeaeaeaease (
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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)
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sh e
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sh eqqqqquuuuuivivivivivaaaaalelelelelennnnntttttsssss
sh e
sh e
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sh and cnd cnd cnd cnd caaaaash e
sh a
s of caaaaash a
sh a
s of c
s of c
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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
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sh a
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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
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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
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(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
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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)

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es  andndndndnd
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es  a
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t  ac
t  ac
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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.

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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.

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t clt claaaaassssssific
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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
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t   a
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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.

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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.

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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
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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.

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GGGGGeeeeenenenenenerrrrraaaaalllll

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it  is  probable  that  an  outflow  of  resources  embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation.

When the Company expects some or all of a provision to
be  reimbursed,  the  reimbursement  is  recognised  as  a
separate asset, but only when the reimbursement is virtually
certain.

The  expense  relating  to  a  provision  is  presented  in  the
statement of profit and loss, net of any reimbursement. If
the effect of the time value of money is material, provisions
are  discounted  using  a  current  pre-tax  rate  that reflects,

when appropriate, the risks specific to the liability. The
unwinding of discount is recognised in the statement of
profit and loss as a finance cost.

Provisions are reviewed at the end of each reporting period
and adjusted to reflect the current best estimate. If it is no
longer  probable  that  an  outflow  of  resources  would  be
required to settle the obligation, the provision is reversed.

mmmmm))))) FFFFFiiiiinnnnnaaaaancianciancianciancial il il il il innnnnssssstttttrrrrruuuuumememememennnnntttttsssss

A  financial  instrument  is  a  contract  that  gives  rise  to  a
financial  asset  for  one  entity and  a  financial  liability  or
equity instrument for another entity.Financial assets and
financial  liabilities  are  recognised  when  the  Company
becomes  a  party  to  the  contractual  provisions  of  the
instruments.

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nd measssssuuuuurrrrreeeeemememememennnnnttttt
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nd mea
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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.

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t mea
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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)

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set c
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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.

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h  ot
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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
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set  a
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A financial asset is subsequently measured at fair value
through  other  comprehensive  income  if  it  is  held
within a business model whose objective is achieved
by both collecting contractual cash flows and selling

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.

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ofit a
set a
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set a
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A financial asset which is not classified in any of the
above categories are subsequently fair valued through
profit or loss.

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A  financial  asset  (or,  where  applicable,  a  part  of  a
financial asset) is primarily derecognised (i.e. removed
from the Company’s Balance Sheet) when:

(i) The contractual rights to receive cash flows from

the asset has expired, or

(ii) The  Company  has  transferred  its  contractual
rights  to  receive  cash  flows  from  the  financial
asset  or  has  assumed  an  obligation  to  pay  the
received cash flows in full without material delay
to  a  third  party  under  a  ‘pass-through’
arrangement;  and  either  (a)  the  Company  has
transferred substantially all the risks and rewards
of  the  asset,  or  (b)  the  Company  has  neither
transferred nor retained substantially all the risks
and  rewards  of  the  asset,  but  has  transferred
control of the asset.

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classified as held for trading, or it is a derivative or it
is designated as such as initial recognition. Financial
liabilities at FVTPL are measured at fair value and
net gains and losses, including any interest expense,
are  recognised  in  the  Statement  of  Profit  and  loss.
Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest  expense  is  recognised  in  the  Statement  of
Profit and loss.

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A  financial  liability  is  derecognised  when  the
obligation  under  the  liability  is  discharged  or
cancelled  or  expires.  When  an  existing  financial
liability is replaced by another from the same lender
on  substantially  different  terms  or  the  terms  of  an
existing liability are substantially modified, such an
exchange  or  modification  is  treated  as  the  de-
recognition  of  the  original  liability  and  the
recognition of a new liability. The difference in the
respective  carrying  amounts  is  recognised  in  the
statement of profit and loss.

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Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if there
is  a  currently  enforceable  legal  right  to  offset  the
recognized amounts and there is an intention to settle
on  a  net  basis,  to  realize  the  assets  and  settle  the
liabilities simultaneously.

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nd measssssuuuuurrrrreeeeemememememennnnnttttt
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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.

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t measssssuuuuurrrrreeeeemememememennnnnttttt
t mea
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For purposes of subsequent measurement, financial
liabilities are classified in two categories:

-

-

Financial liabilities at amortised cost

Financial liabilities at fair value through profit
and loss (FVTPL)

A financial liability is classified as at FVTPL if it is

Till March 31, 2019, the Company used derivative
financial  instruments,  such  as  forward  currency
contracts,  to  hedge  its  foreign  currency  risks.  Such
derivative  financial  instruments  were  initially
recognized  at  fair  value  on  the  date  on  which  a
derivative  contract  is  entered  into  and  are
subsequently remeasured at fair value. Derivatives are
carried as financial assets when the fair value is positive
and  as  financial  liabilities  when  the  fair  value  is
negative. Any gains or losses arising from changes in
the  fair  value  of  derivatives  are  taken  directly  to
statement of profit and loss.

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With effect from April 2019, the Company adopted
Hedge  Accounting.The  derivatives  that  are
designated as hedging instrument under Ind AS 109
to  mitigate  risk  arising  out  of  foreign  currency

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)))))

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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.

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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.

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ppppp))))) FFFFFaaaaaiiiiir vr vr vr vr vaaaaalllllue mea
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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.

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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.

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Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted
at the reporting date.

Deferred  tax  assets  are  recognised  for  all  deductible
temporary  differences,  the  carry  forward  of  unused  tax
credits and any unused tax losses. Deferred tax assets are
recognised  to  the  extent  that  it  is  probable  that  taxable
profit  will  be  available  against  which  the  deductible
temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

Deferred tax assets and liabilities are measured at the tax
rates  that  are  expected  to apply  to  the  period  when  the
asset is realized or the liability is settled, based on tax rates
(and  tax  laws)  that  have  been  enacted  or  substantively
enacted  at  the  balance  sheet  date.  Tax  relating  to  items
recognized directly in equity/other comprehensive income
is recognized in respective head and not in the statement
of profit & loss.

The carrying amount of deferred tax assets is reviewed at
each balance sheet date and is adjusted to the extent that
it is no longer probable that sufficient taxable profit will
be available to allow all or part of the asset to be recovered.

Deferred tax assets and deferred tax liabilities are offset if
a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate
to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognised outside profit or
loss  is  recognised  outside  profit  or  loss  (either  in  other
comprehensive income or in equity).

MMMMMiiiiinnnnniiiiimmmmmuuuuum Am Am Am Am Alllllttttteeeeerrrrrnnnnnaaaaattttte Te Te Te Te Taaaaaxxxxx

Minimum Alternate Tax (MAT) paid in the year is charged
to  the  Statement  of  Profit  and  Loss  as  current  tax.The
Company recognises MAT credit available as an asset only
to  the  extent  that  there  is  convincing  evidence  that  the
Company will pay normal income tax during the specified
period, i.e., the period for which MAT credit is allowed to
be  carried  forward.  In  the  year  in  which  Company
recognises MAT credit as an asset in accordance with the

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).

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Investment in subsidiaries 

There is an option to measure investments in subsidiaries
at cost in accordance with Ind AS 27 at either:

potential equity shares into equity shares.

Dilutive potential equity shares are deemed converted as
of the beginning of the period, unless they have been issued
at a later date. A transaction is considered to be antidilutive
if  its  effect  is  to  increase  the  amount  of  EPS,  either  by
lowering the share count or increase the earnings.

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Grants from the government are recognised at their fair
value where there is reasonable assurance that the grant
will  be  received  and  the  Company  will  comply  with  all
attached conditions.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
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

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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.

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Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an  original  maturity  of  three  months  or  less,  which  are
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and
cash  equivalents  consist  of  cash  balance  on  hand,  cash
balance at banks and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are considered
an integral part of the Company’s cash management.

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In determining earnings per share, the Company considers
the net profit after tax and includes the post tax effect of
any extraordinary items.

Basic EPS amounts are calculated by dividing the profit
for  the  year  attributable  to  the  shareholders  of  the
Company by the weighted average number of equity shares
outstanding as at the end of reporting period.

Diluted EPS amounts are calculated by dividing the profit
attributable to the shareholders of the Company by the
weighted  average  number  of  equity  shares  outstanding
during the year plus the weighted average number of Equity
shares that would be issued on conversion of all the dilutive

A contingent liability exists when there is a possible but
not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or a
present  obligation  whose  amount  cannot  be  estimated
reliably. Contingent liabilities do not warrant provisions,
but  are  disclosed  unless  the  possibility  of  outflow  of
resources  is  remote.  Contingent  assets  are  neither
recognised  nor  disclosed  in  the  financial  statements.
However, contingent assets are assessed continually and if
it is virtually certain that an inflow of economic benefits
will arise, the asset and related income are recognised in
the period in which the change occurs.

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ch & de
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ch & de
esea

Research  and  development  costs  that  are  in  nature  of
tangible assets and are expected to generate probable future
economic  benefits  are  capitalised  as  tangible  assets.
Revenue  expenditure  on  research  and  development  is
charged to the statement of profit and loss in the year in
which it is incurred.

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When items of income and expense within statement of
profit  and  loss  from  ordinary  activities  are  of  such  size,
nature  or  incidence  that  their  disclosure  is  relevant  to
explain the performance of the Company for the period,
the nature and amount of such material items are disclosed
seperately as exceptional items.

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-----
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LaLaLaLaLandndndndnd----- BBBBBuuuuuildildildildildiiiiinnnnngggggsssss
seholdldldldld
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LLLLLeaeaeaeaeaseho
seholdldldldld
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icles
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TTTTTotototototaaaaalllll

(Amount in ` Lakh, unless otherwise stated)

GrGrGrGrGrosososososs  cs  cs  cs  cs  caaaaarrrrrrrrrryiyiyiyiyinnnnng  ag  ag  ag  ag  amoumoumoumoumounnnnnttttt
(((((AAAAAt  Dt  Dt  Dt  Dt  Deeeeeeeeeemememememed  cd  cd  cd  cd  cososososost)t)t)t)t)
As  aAs  aAs  aAs  aAs  at  At  At  At  At  Appppprrrrril  01,  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
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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

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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
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y (Dirrrrreeeeect / I
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ubsidiaiaiaiaiarrrrry (Di
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ubsid

me of the Rhe Rhe Rhe Rhe Relelelelelaaaaattttteeeeed Pd Pd Pd Pd Paaaaarrrrrtttttyyyyy
me of t
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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.

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ue of a
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ck ack as as as as as at At At At At Appppprrrrril 01, 2019
il 01, 2019
il 01, 2019
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il 01, 2019
il 01, 2019
Add: Additions during the year
Less: Disposals / adjustments during the year
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ch 31, 2020
ch 31, 2020
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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
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ch 31, 2020
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As aAs aAs aAs aAs at Mt Mt Mt Mt Maaaaarrrrrch 31, 2020
ch 31, 2020
ch 31, 2020

In 2020-21, there were no impairment charges recorded for right-of-use assets.

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: moveeeeemememememennnnnttttts is is is is in cn cn cn cn caaaaarrrrrrrrrryiyiyiyiyinnnnng vg vg vg vg vaaaaalllllue of r
ue of r
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As 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
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TTTTTotototototaaaaal lea
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se l
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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.

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l Glo
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l Glo
rs of P
d of Dirrrrreeeeectctctctctooooors of P
rs of P
d of Di
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f of B
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(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

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232

Pearl Global Industries Limited     Annual Report 2020-21

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)