Pearl Global Industries Limited
Annual Report 2021-22
01 Corporate Overview
01 Delivering Value. Driving Fashion with ESG at Core
02 Pearl Global: A Brief Overview
04 Journey of Delivering Sustainable Fashion
06 Delivering Value Through Operational Excellence
08 Diversifying Portfolio to Drive Value Creation
10 Delivering Value to Strengthen Relations & Reach
11 Driving Growth Through Strengths
12 Driving Fashion Through Sustainable Partnerships
14 Driving Success, Sustainably
16 Chairman’s Communique
18 Message from the Vice Chairman
20 MD’s Message
22 Group CFO’s Message
23 Board of Directors
24 Delivering Sustainability and Value
26 Corporate Information
29 Statutory Reports
29 Management Discussion and Analysis
49 Notice
60 Directors’ Report
83 Corporate Governance
99 Business Responsibilities Report
111 Financial Statements
111 Standalone
186 Consolidated
Investor Information
Market Cap., as on
March 31, 2022
CIN
BSE Code
NSE Symbol
Bloomberg Code
Dividend Paid
AGM Date
AGM Mode
: ₹ 924 Crores
: L74899DL1989PLC036849
: 532808
: PGIL
: PGIL:IN
: Interim
: 26th September, 2022
: Video Conferencing/OAVM
Disclaimer: This document contains statements about expected future events and financials
of Pearl Global Industries Limited, which are forward-looking. By their nature, forward-looking
statements require the Company to make assumptions and are subject to inherent risks and
uncertainties. There is a significant risk that the assumptions, predictions, and other forward-
looking statements may not prove to be accurate. Readers are cautioned not to place undue
reliance on forward-looking statements as several factors could cause assumptions, actual
future results and events to differ materially from those expressed in the forward-looking
statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety
by the assumptions, qualifications and risk factors referred to in the Management Discussion
and Analysis section of this Annual Report.
Choices of any kind are individual. Yet, each choice holds the potential to affect
others at large. At Pearl Global, we are in the business of fashion – an industry that
is all about catering to individual styles. And as one of the leading industry players,
we have chosen to meet our customers’ requirements, which we do, sustainably.
Thereby, driving a comprehensive
approach that entails and
addresses both our organisational
goals and the business’ impact on
our surroundings. We are certain
of delivering value and driving
fashion with ESG at our core. This
is what we have been doing and
this is what we always will.
At Pearl Global, we are in the business
of fashion – an industry that is all
about catering to individual styles.
And as one of the leading industry
players, we have chosen to meet our
customers’ requirements, which we
do, sustainably.
As a conscious business, our value
lies in the quality we deliver while
delivering sustainable fashion. We
truly believe innovation is key for
the competitive circular future of the
fashion industry. This is why we are
actively working to find solutions
and searching for new partnerships,
processes and materials to co-create
value for all with the least planetary
impact. The fashion industry being the
4th largest sector in the world, holds
the potential to change how fashion
is perceived among buyers globally.
We, at Pearl Global, through our
eco-friendly endeavours, resources
and processes, are advancing in this
direction, responsibly.
In this era of competition, we are
making a difference by making
conscious decisions and keeping the
planet & safety of people at the core.
With this approach, we are no longer
just a fashion company, but have
transformed into a global innovation
brand powered by core value.
We hold an advanced capacity to
bring about a change by ‘transforming
the world of fashion!’. We believe
it is important to cater to fashion
needs, while maintaining stability &
sustainability.
Our marketable insights and
customers around the globe are
supporting us in being a multinational
apparel manufacturing company.
We are empowered by standing
on our core value ESG and being
ecologically responsible and
innovative. Thus, helping us drive
long-term value for our stakeholders,
while transforming the way fashion is
perceived globally.
Our primary goal is to foster an
environment of creativity and
sustainability amid the dynamic
fashion industry. With ESG at our core,
we are confident about unfolding our
future growth prospects.
Pearl Global is in the business of adding glamour to everyday life. We deliver
confidence, style and trends through our services but we do it responsibly.
In an era of fast fashion, we are among the drivers of conscious fashion. As
one of the leading multinational apparel manufacturing company, we are
the one-stop providers of supply chain solutions to leading global brands
– Delivering long-term value through our sustainability-led endeavours.
Simply put, we add ethics, environmental friendliness, and all other small
steps that come together to make a big difference towards the necessity
called sustainability.
Vision
To be the global leader providing end-to-end supply
chain solutions to the fashion industry
Mission
To continuously exceed customer and shareholder
expectations by strategically driving sustainability,
technologically advancement, and innovative
solutions delivered with the best talent in the industry
2
pearl global industries limited What We Do?
Customised Solutions: The biggest
pillar for our operations is providing
customised solutions as per need
Sustainable Care: Adopted the world’s leading
processing standard for textiles made from
organic fabric to provide sustainable solutions
Strong Analytics: Facts-driven analytics
help us drive insights and conclusions
for projects
Infrastructure: Installed state-of-the-art
renewables technology in all factories
for faster operations
Planning and Execution: Customised
solutions are carefully prepared with the
help of in-house experts and R&D
Performance Management: The team at Pearl
Global strategies, plans, performs, and monitors
processes at every stage to ensure seamless
functioning
Strategically Established Design Units:
Established presence across Hong Kong,
U.S.A. (New York), U.K., Spain, India, Vietnam,
Indonesia & Bangladesh
32,000+
Workforce
75
Designers, Globally
8 Countries
Global Presence
21
Manufacturing Units
80+ Million Units
Unit Capcaity Annually
3
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements 4
pearl global industries limited 5
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements We strive to achieve operational excellence through a well-managed manufacturing
process that enables us to carry out bulk production. This makes the Company
competent to serve some of the world’s largest clients in the fashion industry.
With this prowess, the Company balances technology, innovation, talent, planning,
cross-operations, and communication to deliver value, sustainably.
Pearl Global’s
manufacturing facilities
are designed specifically
for high-quality bulk
production. As a textile and
clothing manufacturer, the
Company is at the forefront
of textile innovation
and sustainability. The
Company pursues
scalable expansion, while
ensuring that our factories
are equipped with the
necessary resources
at all times to carry out
activities such as knitting,
washing, and drying fabric
– obtained from strategic
locations.
Global Presence Across 8
Countries
1 U.S.A. (New York)
2 The U.K.
3 Spain
4
India (Gurugram, Chennai,
Bangalore)
5 Bangladesh
6 Vietnam
7
Indonesia
8 Hong-Kong
Click locations
on the Map
This map is a generalised illustration only for the ease of the reader to understand the locations, and it is not intended to be used for
reference purposes. The representation of political boundaries and the names of geographical features/states do not necessarily
reflect the actual position. The Company or any of its directors, officers or employees, cannot be held responsible for any misuse
or misinterpretation of any information or design thereof. The Company does not warrant or represent any kind of connection to its
accuracy or completeness.
6
pearl global industries limited Manufacturing Facilities
Location
India
Bangladesh
Vietnam
Indonesia
No. of
Units
Annual Capacity
in Pieces
Specialisation
8
8
3
2
28 Million
Woven and knitted products, including women’s fashion wear, men’s wear, and
kid’s wear. South Indian factories make women’s tops and dresses.
45 Million
Woven and knitted tops and bottoms for men, women, and kids
4.5 Million
Multiple products, including outerwear and jackets, including down jackets,
woolen jackets & coats, seam-sealed jackets, puffers, parka’s, blazers, anoraks,
swim trunks, and synthetic bottoms
3 Million
Women's professional wear, performance wear, activewear, woven tops &
dresses, sleepwear, and loungewear
7
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Through the years, Pearl Global has been working with passion and ethics,
while designing apparel for individuals of all ages, sizes, and genders
through a well-diversified portfolio. We refine our craft consistently while
creating top-notch apparel for worldwide brands through sustainable
solutions. Through our extensive product portfolio, the Company is driving
value creation for our stakeholders, ensuring world-class quality and
customer satisfaction.
Offerings across
Gender-wise
Woven & Knits
Knits
Wovens
Denim
Outerwear
Women
Men
Boys
Tops, Shirts, T-shirts, Long Shirts, Dresses,
Sleepwears, Hoodies, Leggings, Sweaters,
Joggers
Shirts, Polo T-shirts, Sleepwears, Pyjamas,
Hoodies
Shirts, T-shirts, Two-piece Sets
Activewear and Athleisure
Girls
Tops, Skirts, T-shirts, Dresses, Rompers, Tank
Sleepwear and Lounge
Toddlers
Rompers
Workwear
Children’s wear
8
pearl global industries limited
Product-wise Split
Hong Kong
Design studios and sales offices
Spain
The U.K.
New York
Denim jackets, denim bottoms, and more
Jerseys, wovens, denims, outerwears, sleepwears, loungewears, beachwears, and kids' wear
Market intelligence for knits, wovens, denims, outerwears, activewears, sleepwears/loungewears,
and children's wear category
9
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Over the years, Pearl Global has established a strong and wide industrial presence.
Today, the Company’s clientele includes some of the most renowned companies on
a global scale. We meet our clients’ diversified and ever-evolving requirements by
carefully identifying and catering to the ongoing trends, serving a rich clientele
worldwide.
Large-Format
High-Fashion Speciality Retailers
10
pearl global industries limited The Company is consistently growing on the back of our strengths that enabled us
to attain market distinction, and long-term success. The following factors play a
key role in helping the Company stand out in the market:
Multinational Presence
We have established our presence at multiple global locations, with 21 manufacturing facilities spread
across four nations. Being an end-to-end supply chain provider, these facilities are present in two of
the four supply chain sectors. As a result, these facilities help the Company deliver products with a
much faster turnaround time – leading to an increased wallet share of existing customers.
Robust Design Team
To fulfil and meet both local and global fashion trends, the Company’s robust design team emphasise
on a comprehensive market intelligence analysis conducted by our talented design personnel. This
analysis includes gathering and assessing data from both large and regional areas, enabling Pearl
Global to capitalise on these insights. The Company integrates technology like 3D CAD rendering, 3D
optitex, CLO, and Browzwear with raw talent and insights to create final product. A robust design team,
therefore allows the business to achieve success by delivering a worthy performance and acquiring
more customer for a broadened industry presence.
Shift Towards Asset Light Model
Shifting to an asset-light business has provided an impetus for the Company to expand into new
geographies and penetrate deeper into existing markets. This model serves as the Company’s core
strength and has helped Pearl Global master its partnership model. Thereby, propelling the business to
the next stage of growth, reducing our lead time and improving return ratios in the process.
Strong Customer Relationship
The Company has established a long-term collaboration with well-known big retail format stores
such as Kohl’s, Macy’s, Target Australia, and others, as well as specialised retail format stores such
as Bershka, Gap, Old Navy, and others. Pearl Global’s solid and long-standing customer relationships
enable us to introduce new product categories to a ready number of customers easily.
11
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Any partnership can make a huge difference, when it brings the expertise of two
individuals. Partnerships are all about doing what one does better and continue
doing more of it.
Pearl Global benefits from the synergies resulting from the Company’s partnerships. The Company’s partnership model
enables us to build value, manage frameworks, and offer high-quality output by using the available capacity and resources
comprehensively. This helps the Company develop strategies with collective efforts for better growth, bring the best each one
offers to the table.
Pearl Global Contribution
Partnering Company’s Contribution
Working capital investment is a critical component of any
company’s operations that helps it manage short-term
financing and investment decisions. Pearl Global’s partnership
model helps in leveraging the Company’s designing and
procurement capabilities. Along with the capital investment,
the Company also appoints an industrial engineer, whose
role is to ensure compliance with industry norms and monitor
production processes in line with the set guidelines.
As Pearl Global continues to collaborate and engage with
different companies globally, the partnering company
prudently manages capex and labour expenses in the local
setup. As a result of this arrangement, Pearl Global enjoys
the benefits of an asset light model while also offering the
best of both the worlds.
12
pearl global industries limited corporate overview
statutory reports
financial statements
Synergies Derived from Partnership Model
Faster
turnaround
time
Capacities in
proximity to supply
chain area
Asset light
model
Better return
ratios
annual report 2021-22
13
In the year 2021-22, termed the year of recovery since the Covid-19
pandemic, the Company registered an admirable performance. While other
businesses were still recovering, the Company established a goal and
persistently worked towards achieving it. Pearl Global believes in driving
success sustainably, and is hence focused on optimising allocation of
resources, maintaining topline, and delivering significant output/results
consistently.
Revenue from Operations
(₹ in Crores)
EBITDA
(₹ in Crores)
2,713
140.6
1,757
1,685
1,496
1,490
88.1
66.9
60.9
24.8
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
14
pearl global industries limited EBITDA Margin
(%)
PBT
(₹ in Crores)
5.0
5.2
82.9
85.8
4.0
4.1
1.7
32.4
31.2
11.4
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
PAT
(₹ in Crores)
Geographical Revenue Split
(₹ in Crores)
67.1
70.1
2,714
0
8
7
,
1
23.1
21.7
17.5
1,496
5
8
7
1
1
7
1,757
7
1
9
0
4
8
1,685
0
6
8
5
2
8
1,491
0
2
7
1
7
7
4
3
9
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
Rest of the World
India
Total
15
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements At Pearl Global, 2021-22 was a year
of records both in the financial and
extra-financial spheres – thanks to
our robust and balanced business
model and the strategic choices
made over the past few years. Our
agility and resilience helped us
remarkably overcome the crisis while
continuing on our virtuous path. The
exceptional financial performance
achieved in 2021-22 – a combination
of strong sales growth, market share
gains, pieces shipped and a record
increase in profitability – enabled us
to pursue our dynamic shareholder
return policy. In continuation, we
made tremendous progress in
sustainable development, gender
equality and inclusion. We must
continue accelerating our growth
course while tackling today’s
huge environmental and societal
challenges. We believe in radically
16
transforming our Company into an
ever-more exemplary, responsible,
and supportive corporate citizen.
Macroeconomic Environment
India showcased strong recovery by
posting an 8.7% growth. For Indian
businesses, the financial year 2021-
22 started on a sombre note as the
Delta variant led to colossal loss of
lives and livelihoods. Fortunately,
our vaccination programme gained
momentum as the year progressed,
and the deadly strain also subsided.
By the time the festive season started,
the country's mood and the business
environment became quite upbeat.
In response to the pandemic, the
Central Bank resorted to strongly
supportive monetary policy, causing
interest rates to go down to record
lows. At the same time, another
consequence of this policy was
a surfeit of liquidity – leading to a
strong rally in prices of many industrial
commodities, supported by the evolving
economic recovery, stimulus-related
demand expectations and certain supply
side disruptions. This caused inflationary
pressures on the cost dynamic of several
manufacturing industries.
In addition, the war in Ukraine further
worsened the socio-economic
situation globally. Lesser developed
and smaller countries have suffered
disproportionately as stronger nations
cornered vaccines and other resources.
With the vigilance required by the
current geopolitical context, we will
continue investing in ever more
appealing designs, unique experiences
and further progress in corporate social
responsibility. We will spur momentum
over the months ahead by focusing on
the quest for perfection and creativity
pearl global industries limited that runs through all our professions.
We will actively pursue our
commitment to promoting and passing
on excellence in craftsmanship and
design professions. We will continue
to showcase the values that provide
an endless source of inspiration for
our designers and the unique heritage
whose timeless modernity they reveal
season-after-season, combined with
our manufacturing capabilities.
Industry Trends
Fashion is one of the world’s most
important industries, driving a
significant part of the global economy.
It is one of the key value-creating
industries for the world economy.
Before the Covid-19 pandemic, the
fashion industry's global revenue was
estimated between USD 1.7 Trillion
and USD 2.5 Trillion, according to
two different research reports by
Euromonitor and McKinsey. McKinsey
states that the fashion and apparel
industry suffered a 20% decline in
revenues in 2019-20. After lockdown
restrictions were lifted in many parts
of the world, consumers headed back
to the stores. With that, the fashion
industry returned to pre-pandemic
levels. According to Euromonitor,
the world’s apparel retail market
expectedly enjoyed a 7.5% growth in
2021-22, which increased to USD 1.84
Billion in 2022, and a 6.1% growth in
2022-23 to USD 1.95 Billion in 2023.
Several fundamental and long-term
macro drivers and opportunities
influence the industry’s growth
and evolution. Due to the Covid-19
interruptions, the shortage of
skilled labour, and uncertainty
in the raw material supply chain,
many underprepared players found
maintaining their respective market
shares challenging. Only the fittest
players with solid balance sheets
and agile management could survive
through these challenges relatively
unscathed. As we tread along, these
Sustainability Focus
stronger players are the ones to enjoy
an upper hand further to grow their
respective market shares within a
consolidating industry.
Our pro-activeness helped us post
an exceptional growth, underpinned
by high-quality innovations and
rigorous cost control. We reinvested
significantly in our strategies and
capabilities to boost our desires while
improving profitability.
At the same time, we invested
in our social and environmental
commitments, reflecting our goal of
achieving responsible growth and
sharing value with all stakeholders.
Pearl Global sees
value creation as a
combination of financial
performance and
environmental and social
performance, a guiding
principle that drives
our actions on a daily
basis. We firmly believe
financial performance
is inextricably tied to
social and environmental
performance. The goal
is to sustainably create
value and share the same
with our Company’s
entire ecosystem.
We have set our its vision higher
and pledged to respect planetary
boundaries – what the planet can
withstand, as defined by environmental
science. The strategy is based on
quantifiable goals to minimise the
impact of our Company’s activities on
the climate, water, biodiversity and
natural resources while helping meet
some of the most urgent social and
environmental challenges facing the
world.
At Pearl Global, we believe that being
a member of a society is a fundamental
obligation. We realise our role in
crafting a sustainable future and, as a
result, we will continue to engage in
socially constructive endeavours. Our
consistent emphasis on empowering
lives and making significant
contributions to the communities
around us has shaped us. In the midst
of hardship, Pearl Global flourished and
took a tremendous leap forward.
Closing Note
I would like to thank our Executive
Committee and our exceptional teams
for their passion and energy over the
past year. I am also grateful to my fellow
Board members for their unfaltering
commitment and counsel and their
flexibility as we worked mostly virtually
through a very busy agenda. Finally,
on behalf of everyone at Pearl Global,
I would like to thank our shareholders,
customers, bankers and all business
associates for their steadfast and
continued support.
Regards,
Deepak Seth
Chairman
17
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Much has changed in the past year
but I continue to be very proud
of our teams around the world as
they adapted to multiple external
challenges while continuing to
progress on our brand elevation
strategy and, critically, staying true to
our Company’s purpose and values.
The global context in which Pearl
Global operates has evolved amid
the conflict in Ukraine, amplified
warnings about the climate crisis and
the ongoing impacts of the Covid-19
pandemic. Yet our teams showed
resilience, agility and creativity to drive
acceleration in full-year revenue and
record profitability while continuing to
play a positive role in society.
Business Highlights
Last year, we were in the recovery
stage, and conquered it with newer
heights and milestones with a target
to achieve a better sustainable place
in society. We could demonstrate the
durability of our business strategy
yet again, and provide added value
to our clients. One of the primary
reasons behind this is exceptional
operational competence. Our
focus is always on offering end-to-
end supply chain solutions to our
partners while maintaining design,
technology, innovation, sustainability,
and quality at the forefront.
We believe in paving the road for a
circular economy by minimising waste
and maximising resource utilisation.
And our procedures are built to
facilitate this without sacrificing quality
or production. This approach has
enabled us develop an infrastructure
dedicated to strategic production and
environmental preservation through
renewable energy.
As a worldwide corporation, we
recognise our obligations to our
partners, workers, stakeholders,
and society. We ensure that all our
operations and efforts are coordinated
to match customer expectations while
not interfering with our productivity.
18
pearl global industries limited Our excellent
relationships with our
clients and stakeholders
put us on the path to
bigger accomplishments
and new chances. As
the year progressed
we capitalised on the
opportunities and won
considerable market
share from other
manufacturers.
Over the course of our history,
Pearl Global has consistently
demonstrated the ability to identify
promising projects and high-potential
partnerships. We have secured
success through a combination
of smart strategic choices, the
provision of relevant resources and
appropriate means, and unique
expertise. Partnership-based
expansion remains a powerful
growth driver for our Company,
empowering Pearl Global to meet all
fashion aspirations across the globe.
Each partnership represents a new
chapter, a new value chain and new
expertise.
Towards Society with
Sustainable Approach
To accomplish sustainability, we
have always believed in the triple
bottom line: people, planet, and
profit. One of the fundamental pillars
of our social duty is environmental
sustainability. To fulfill our
responsibilities as a clothing vendor,
we have put in place the following
procedures to achieve the highest level
of sustainability requirements.
A framework that enables meeting
environmental performance
expectations, ensures regulatory
compliance, minimises environmental
risks and establishes & implements
long-term environmental strategies.
A measuring tool that helps us map,
plan and implement meaningful
improvements that protect the
well-being of factory workers, local
communities and the environment.
Adopted the world’s leading
processing standard for textiles
made from organic fibers.
As a responsible apparel manufacturer,
we are dedicated to finding new and
inventive methods to minimise our
carbon footprints. One such endeavour
is using renewable energy in our
operations. We have taken some
ongoing sustainable initiatives like using
eco-friendly fabrics with longer life span,
environmental impact measurements,
and solar power generation.
Growth Drivers
Covid-19 and geopolitical situations
have led to the redistribution of global
trade shares and recalibration of
sourcing partners. China +1 provides
an enormous opportunity for India
textiles industry to regain leadership as
a top exporting economy. India textiles
exports is expected to expand at ~11%
CAGR to reach USD 65 Billion by 2026
from pre-Covid-19 level of USD 36
Billion in 2019. Capex and investments
are expected to pick up in the sector,
while productivity and industry
competitiveness will improve. With the
improvement in the domestic economy
and increase in exports, domestic
production is expected to increase
substantially to meet the demand. With
favourable Indian demographics and
industry dynamics, India is poised to
become a global textiles hub.
We, at Pearl Global, stand tall in India
and across developing nations to
benefit from the China+1 strategy.
Our 21 manufacturing facilities spread
across 4 countries with a presence in 2
out of 4 supply chain areas will help us
establish and strengthen our hold as
an end-to-end supply chain provider.
Our Concept + Store ability will propel
this cause, and our fashion trend
analysis by talented design personnel
and unique modern techniques will
help us craft and execute strategies
based on our robust business model.
We have strong foundations to build
and accelerate growth in this next
phase. Our strategy is clear and a
shared purpose and values unite
our teams. I am confident that Pearl
Global will continue demonstrating
its extraordinary potential, leveraging
our unique Indian brand to deliver
sustainable and responsible growth.
Sincere Gratitude
I would like to thank our shareholders
for believing in our Company’s
vision and principles, which have
allowed us to continue our success
and expansion. Finally, I’d want
to congratulate our staff for their
enthusiasm for working and growing
within the group of firms. We are
looking forward to effectively
overcome the obstacles and new
possibilities that await us.
Regards,
Pulkit Seth
Vice-Chairman
19
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Going forward, we will continue to
work on improving our operational
efficiencies to enhance our ROCE
trajectory. A more stable Government
policies, coupled with our asset-light
business model, is expected to lead
us to robust growth in terms of topline
and bottomline.
Our world has been changing faster
post the Covid-19 lockdowns. Our
fashion and apparel industry has
been adopting and changing quickly
to keep pace with the changing
demands of customers – entailing
big changes in raw materials and
manufacturing processes. We
experienced a massive change in
how we work, as organisations started
working remotely – thus, changing
the place of work and the clothes
worn to work, as a consequence.
This fast-paced shift and transition
have only one loud and clear
message to give away – it is only
the nimble and flexible organisations
that will survive and thrive in this fast-
changing business environment.
We also witnessed another global
change in the area of transportation
and international logistics. We
experienced a higher cost and
longer transportation time to reach
international markets. This did not
directly affect us financially as our
business is on FOB terms. However,
the situation is expected to continue
pushing the global retailers to rework
their supply chains and lead time for
creating and manufacturing fashion.
For 2021-22, we did feel the start
of inflationary pressure in the western
economy – a trend which is still
continuing. Among the major apparel
export markets, American retailers
experienced a high pent-up demand
while EU, the U.K., Japan and Australia
experienced prolonged lockdowns
and slower opening.
We expect the world view of China
+1 will continue to shape the new
economic world order. Other Asian
countries will continue to gain
manufacturing businesses. Each of
their performances will depend on their
infrastructure, available manpower, raw
materials and the local government
policies. In our textile and apparel
world, western retailers continue to
look for alternatives to China. The
U.S. and many other countries do not
20
pearl global industries limited accept cotton produced in Xinjiang,
thus accelerating this business shift.
India is the largest cotton producer,
and the Xinjian cotton ban put a lot
of pressure and demand for Indian
cotton. As a result, we experienced a
hike in price and various shortages.
But, on the positive side, the biggest
gainers in apparel manufacturing have
been in Bangladesh and Vietnam,
followed by India, Pakistan and
Myanmar. This shift will continue to
gain momentum despite some major
western economies’ fear of high
inflation and recession.
Pearl Global has successfully adapted
every cycle that fashion retail has
been through. Our manufacturing
facilities across Bangladesh, India,
Vietnam and Indonesia provide us
with a unique opportunity. We could
successfully offer multiple products
and service to our clients at a time
when various parts of the world were
shutting down at different times
due to the spread of Covid-19. This
ability helped add to the confidence
amongst our customers as we could
serve them with the right product at
the right time.
We completely accredit our ability
to respond to the unfolding market
conditions to our Company’s deep
and longstanding connection
with the real world of fashion – a
premise so simple but core to our
personality. Our business model is
the result of a winning combination of
teamwork, talent, creativity, innovation,
dynamism, efficiency and flexibility –
an entrenched culture that pushes our
boundaries beyond comfort zones.
Operational Highlights
Covid-19 led to the redistribution of
global trade shares and recalibration
of sourcing partners. China +1 opened
opportunities for global garment
players like Pearl Global as we enjoy
a presence in multiple countries with
deep penetration into apparel supply
chains.
With the acquisition of Alpha, our
Company’s production capacity is
anticipated to increase by 6 Million
pieces per year. Alpha Clothing,
being Gold Leed Certified facility
and approved by our major strategic
buyers, will help us to further
strengthen our manufacturing
presence in Bangladesh market and
fuel incremental growth through new
customer acquisition and additional
demand from existing customers.
Our Strategy for the Road
Ahead
We are expanding and improving
our services to our customers across
various geographies. We bring to the
table multiple products in the apparel
basket and from multiple locations.
We provide our clients with a one-
stop shop catering to most of their
needs and mitigate their risks as the
Pearl Global supply chain is across
multiple locations, avoiding the
adverse effects of local shutdowns.
With our in-country offices for our
customers, we work closely with the
customers’ product development
teams to add continuous innovation
to our offerings.
Ethics & sustainability is at the core of
our business. We protect our future
and we take all the responsibility for
it. With 32,000+ workforce directly
related to the manufacturing lines,
we strive to add value to their lives
in every way, every day. Our vision
is critical to a conscious approach
to decreasing our carbon footprints,
developing and using renewable
energy across our manufacturing
units, and conserving water.
Undertaking robust risk management,
our knowledgeable leadership team
comprises experienced manufacturing
and retail sourcing professionals. As
a team, we intend to play a part in
setting the course for our Company,
assuring appropriate business
practices to mitigate various risks that
affect manufacturing and the apparel
manufacturing/supply chain.
Delivery value, we take a customer-
centric approach in which we provide
products with high quality by adopting
technology, automation and analytics.
Closing Thoughts
We promise to keep our unique
business approach and philosophy
alive and well. It will allow us to
fully leverage our knowledge and
vision for the fashion business and
design, all of which are is vital in our
sector. In assuming my duties, I am
confident that I can rely on the best
team of professionals with perfect
combination of talent and proven
experience. I have the assurance
that comes from knowing that I am
buoyed by the passion of a group
of ethically-committed designers
and product developers, factories,
logistics, international market and
corporate service managers who
make this a leading global company.
We are thankful to their efforts, we will
continue to build our Company into
becoming further of what we aspire to
be.
Regards,
Pallab Banerjee
Managing Director
21
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Our overseas business showed 147% y-o-y growth and a
chunk of revenue from partnership business. With this, our
revenue reflected 82% y-o-y growth across our business
lines i.e. from ₹ 1,490.9 in 2020-21 to ₹ 2,713.5 in 2021-22.
The overall wind of business demand is blowing across
the globe, helping us build a stronger presence and
reach. As an organisation, our ultimate aim is to fulfill the
generational demand with a sustainable approach.
With a focus on robust internal control mechanisms and
sound corporate governance, we endeavour to sustain
best corporate practices within the Group. Our continued
emphasis on financial discipline by adopting prudent
capital allocation, efficient working capital management
& risk management, ensures the enhancement of all
stakeholders’ value.
I would like to thank our customers, shareholders, banks,
analysts, rating agencies, business partners and key
advisors for their continued trust in Pearl Global and their
ongoing support to initiate and execute the right measures
helping us to emerge stronger and be in the best position
to take advantage of the opportunities we see on our way
ahead.
With Best Wishes,
Sanjay Gandhi
Group CFO
22
pearl global industries limited Vietnam and Hong
Kong
Mr. Gurusankar Gurumoorthy
CEO
Mr. Kulbhushan Aggarwal
Director -Finance
Mr. Sumit Lath
CFO (Hong Kong)
Indonesia
Mr. Rajesh Ajwani
Commissioner
Mr. Amit Kumar
Director
Mr. Deepak Seth
Chairman
Mr. Pulkit Seth
Vice-Chairman
Mrs. Shifalli Seth
Non-Executive Director
Mr. Pallab Banerjee
Managing Director
Mr. Anil Nayar
Independent Director
Mr. Rajendra Kumar Aneja
Independent Director
Mr. Chittranjan Dua
Independent Director
Mr. Abhishek Goyal
Independent Director
Mrs. Madhulika Bhupatkar
Independent Director
Ms. Neha Khanna
Independent Director
Mr. Shailesh Kumar
Executive Director
Mr. Deepak Kumar
Executive Director
Group Leadership
Mr. Pallab Banerjee
Managing Director
Mr. Sanjay Gandhi
Group CFO
Ms. Ratna Singh
Group CHRO
Core Team
India
Mr. Sundeep Chatrath
CEO – Knits
Mr. Pankaj Bhasin
CEO – Woven
Mr. Narendra Somani
CFO
Bangladesh
Mr. Vikas Mehra
CEO
Mr. Sanjay Sarkar
Country Director
U.K.
Ms. Joanna Hales
Senior Vice President
Ms. Narinda Leon
Design Head
U.S.A.
Dr. Mahesh Seth
Vice President – Operations
Ms. Amy Rosenberg
Vice President – Merchandising
Mr. David Ayala
Global Creative Director
Mr. Jeff Kreindel
Executive Vice President
23
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Through Pearl Global’s CSR activities, we contribute towards enriching lives and
protecting the future by creating sustainable value for the society we thrive
in. The Company engages in and commits to doing business that can positively
impact stakeholders at large, towards their wellbeing and a better tomorrow.
Pearl Global delivers on the Company’s responsibility of sustaining the business with a long-term resource planning. We also
undertake initiatives to improve the accessibility of education and other necessities, while spreading awareness about crucial
topics, such as environmental sustainability and health.
Read Out Loud Programme
The Company launched the ‘Read Out Loud’ programme on October 22, 2021,
in collaboration with Adhyayan Quality Education Foundation (AQEF). The
programme aims to tackle the children’s loss in attaining education during the
pandemic, because of school closures since March 2020.
Arpan Education Society
‘Arpan’ is a programme created and operated by the Company to bridge the
knowledge gap, by providing quality education to the needy. Under Arpan, the
centre provides free tuition, acts as a training centre and gives scholarships to
children to help them grow and develop their skills.
Drug-Free India
The Company recognises how drug abuse is becoming a growing concern
in India. Therefore, through the ‘Happy and Healthy' campus programme, we
partnered with the Government of Haryana and the Art of Living organisation
to educate youth about these issues.
24
pearl global industries limited Awareness and Screening of Cervical Cancer
In association with CAPED India, the Company helps spread awareness
about and facilitates cervical cancer screening among women and girls
from low-income families in the Delhi-NCR region.
Scholarships under Mina Seth Foundation
The Company provides scholarships to underprivileged school children
under the Mina Seth Foundation. Through this, we aim to help children
build a bright future for themselves, by overcoming certain constraints
that hinder their future growth prospects. So far, more than 200
students have been given scholarship under this initiative.
Scholarship to Hanoi University of Science &
Technology
The Company provided scholarship to students at Hanoi University
of Science and Technology, who achieved high GPAs but belonged
to low-income families. Through this, the Company’s goal is to make
college more accessible and affordable for prospective students, who
might otherwise fail to secure a degree. In addition, many students
were given a chance to do internships at Pearl Global, Vietnam,
following which, they were also been given an opportunity to secure
jobs there, based on their performance.
25
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements Corporate Social Responsibility
Committee
Mrs. Madhulika Bhupatkar
Chairperson
Mr. Pulkit Seth
Member Director
Mr. Anil Nayar
Member Director
Auditors
M/s B.R. Gupta & Co. Chartered
Accountants, K-55, Connaught
Circus, New Delhi-110001
Registered Office
C-17/1, Paschimi Marg, Vasant Vihar,
New Delhi-110057
Corporate Office
‘Pearl Tower’, Plot No. 51, Sector-32,
Gurugram-122001 (Haryana)
Bankers
Punjab National Bank
HDFC Bank Limited
State Bank of India
Standard Chartered Bank
UCO Bank
RBL Bank Limited
Audit Committee
Mr. Anil Nayar
Chairman
Mrs. Madhulika Bhupatkar
Member Director
Mr. Rajendra Kumar Aneja
Member Director
Mr. Abhishek Goyal
Member Director
Nomination and Remuneration
Committee
Mr. Abhishek Goyal
Chairman
Mr. Deepak Seth
Member Director
Mr. Rajendra Kumar Aneja
Member Director
Mr. Anil Nayar
Member Director
Stakeholder Relationship
Committee
Mr. Anil Nayar
Chairman
Mr. Pulkit Seth
Member Director
Mr. Rajendra Kumar Aneja
Member Director
Risk Management Committee
Mr. Pallab Banerjee
Chairman
Mr. Abhishek Goyal
Member Director
Ms. Neha Khanna
Member Director
Board Members
Mr. Deepak Seth
Chairman
Mr. Pulkit Seth
Vice-Chairman
Mrs. Shifalli Seth
Director
Mr. Pallab Benerjee
Managing Director
Mr. Shailesh Kumar
Executive Director
Mr. Deepak Kumar
Executive Director
Mr. Chittranjan Dua
Non-Executive Independent
Director
Mr. Rajendra Kumar Aneja
Non-Executive Independent
Director
Mr. Anil Nayar
Non-Executive Independent
Director
Mr. Abhishek Goyal
Non-Executive Independent
Director
Mrs. Madhulika Bhupatkar
Non-Executive Independent
Director
Ms. Neha Khanna
Non-Executive Independent
Director
Group Chief Financial Officer
Mr. Sanjay Gandhi
Chief Financial Officer
Mr. Narendra Kumar Somani
26
pearl global industries limited 27
AnnuAl report 2021-22corporate overviewstAtutory reportsfinAnciAl stAtements 28
pearl global industries limited 29
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements Economic Overview
Global Economy
The year 2021 witnessed the global economy
recovery, posting a strong 6.1% Y-o-Y growth, after
having contracted by 3.2% in 2020. Successful
and large-scale vaccination and a more nuanced
approach toward restrictions, mitigated the trade-
off between economic growth and Covid-19
prevention, despite the onslaught of the Delta wave
in the early part of 2021 and the highly contagious
Omicron wave in the later part. There has been
a perceptible fall in Covid-19 stringency indices
across most parts of the world, including lifting of
the mask mandate, with most governments having
adopted an approach of ‘learning to live with the
virus.’ On the other hand, since March 2022, China
has been facing its worst Covid-19 surge since the
pandemic began, and its Zero Covid Policy has
dented economic activity in the country. With the
Russia-Ukraine conflict in late February, the narrative
is shifting from ‘Covid to Conflict’ and global growth
projections have since then been downgraded in
view of the economic damage caused by the war,
with concerns of a prolonged slowdown in China
adding to the downside risks.
Globally, inflation broadened and acquired
persistence during 2021, under the impact of
repetitive shocks. Inflation has emerged as the
biggest macroeconomic worry for policy-makers
across the globe, having risen to multi-decade
highs, especially in advanced countries. Central
banks have, therefore, started tightening their
monetary policies and raising interest rates.
The global economy witnessed severe supply
chain bottlenecks and shortages (of semi-
conductors, natural gas, coal etc.) as pent-up
demand overlapped with disrupted production
and shutting down of ports, and delays in orders
for new shipping vessels. These shocks severely
constrained the supply response to the release of
pent-up demand and pushed up costs and prices.
Fortunately, the waves turned out to be short-lived
and global trade recovered, amidst supply and
logistics bottlenecks, recording a growth of 10.1%
over the year as a whole. Underpinning this upturn,
global manufacturing accelerated from 4.2% a year
ago, to 9.4% in 2021.
30
Growth Projections
World Economic Outlook April 2022
Global Economy (%)
6.1
3.6
3.6
2021
2022
2023
Advanced Economies (%)
5.2
3.3
2.4
2021
2022
2023
Emerging Market &
Developing Economies (%)
6.8
4.4
3.8
2021
2022
2023
International Monetary Fund
pearl global industries limited Global growth is projected to slow down from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023. Beyond 2023, global growth
is predicted to decline to about 3.3% over the medium-term. Scarring effects are expected to be much larger in emerging
market and developing economies than in advanced economies — reflecting more limited policy support and generally slower
vaccination — with output expected to remain below the pre-pandemic trend throughout the forecast horizon.
Growth Projections
World Economic Outlook April 2022
(Percentage Change)
World*
United States
Euro Area
6.1
5.7
5.3
3.6
3.6
3.7
2.3
2.8
2.3
2021
2022
2023
2021
2022
2023
2021
2022
2023
Middle East and Central Asia
Emerging and Developing Asia
Latin America and the Caribbean
5.7
7.3
6.8
4.6
3.7
5.4
5.6
2.5
2.5
2021
2022
2023
2021
2022
2023
2021
2022
2023
Sub-Saharan Africa
4.5
3.8
4.0
2021
2022
2023
Source:https://www.imf.org/en/Publications/WEO/Issues/2021/10/12/world-economic-outlook-october-2021, https://www.imf.org/en/Publications/WEO/
Issues/2022/04/19/world-economic-outlook-april-2022
31
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements Trade has rebounded
Index 2015 = 100, 3-month m.a.
Total export of goods and services
Total import of goods and services
2018
2019
2020
2021
Outlook
Indian economy has remained resilient and is well
placed to deal with the challenges emanating from the
geopolitical developments. There are sparks in the wind
that ignite the innate strength of the economy and set
it on course to becoming the fastest-growing economy
in the world, though it might be besieged by fears of
recession. The Indian economy is showing resilience
and dynamism in spite of the geopolitical situation and
high-risk aversion in financial markets that is stampeding
portfolio investors and taking down all currencies against
the unrelenting strength of the USD. The recent revival
of the southwest monsoon and rejuvenation of sowing
activity has raised hopes of another bountiful year
for agricultural activity, raising expectations that rural
demand will soon catch up with urban spending and
consolidate the recovery.
The banking sector remains resilient and strong. Overall,
the macroeconomic numbers also broadly look alright,
despite the depreciation of the Indian rupee. So far it
175
150
125
100
75
50
Indian Economy
The Indian economy recovered, with 8.7%
growth in 2021-22, which mitigated the GDP
loss experienced in 2020-21. Real GDP in
2021-22 (2011-12 prices) stood at H 147.3 Lakh
Crores, surpassing 2019-20’s real GDP (2011-
12 prices) of H 145 Lakh Crores. While growth
in 2021-22 came on a low base, the economy
was able to tide over the impact of the two
pandemic waves during the year. The Delta
wave in the first quarter of 2021-22 severely
affected the services sector, after which the
sector rebounded with sequential opening up
of high contact sectors. The third wave turned
out to be short-lived and less debilitating in
terms of impact on economic activity than the
first two waves, as a result of higher efficacy
of the nationwide vaccination drive and better
adaptability. The success in navigating two
waves of pandemic was led by coordinated
efforts from Central and State Governments and
three tiers of administration along with multiple
awareness campaigns to quell vaccination
hesitancy. The services sector has been a key
driver of India’s turnaround, while the industrial
sector witnessed a broad-based recovery.
However, towards the end of the year, growth
in industrial sector slowed down and became
uneven, with demand for consumer goods
particularly being sluggish.
As per RBI, in spite of the severity of the second
wave, the loss of output in Q1 of 2021-22, was
about one-third of what was suffered during Q1
of 2020-21. This resilience and the underlying
strengthening of the impulses of growth were
evident in the recommencement of the recovery
from Q2 of 2021-22 onwards. In fact, the
third wave, starting end-December 2021, was
flattened in a month’s time, with infections back
to levels, as seen at the start of the pandemic.
Fiscal re-prioritisation of expenditure towards
infrastructure, robust crop production, ebullient
export growth in the face of hostile international
conditions, and congenial monetary and
financial conditions engendered by the Reserve
Bank, led to this macroeconomic performance.
32
pearl global industries limited had been among the better-performing currencies in its
peer group in emerging market nations and others. The
fiscal deficit [target] which was there in the budget for the
last year has been achieved. So, overall Indian economy
continues to be in a resilient position. The recovery is
getting traction and is reflected in the sense that capacity
utilisation has improved. The disbursal of bank credit is
also picking up. Rural and urban demand are also showing
signs of further improvement and that is how we stand
today.
Industry Overview
India is one of the leading exporters of textiles and
clothing, owing to the vast raw material and manufacturing
base. The sector contributes significantly to the economy,
both domestically, and through exports. In ranking, India is
the 6th largest exporter of textile and apparels in the world.
The domestic Apparel and Textile industry contributes
5% to country’s earnings and 12% of the country’s export
earnings. It also owns 7% of the industry’s output in value
terms. India also produces silk and 95% of the world’s
hand-woven fabric comes from India. The Technical
Textiles segment is estimated at USD 16 Billion and
approximately 6% of the global market. Traditional hand
weaving, technological textiles, and contemporary textile
mills are all part of the textile business.
GDP Growth Forecast
India
8.9%
7.5%
8.0%
2021
2022
2023
Top 10 Clothing Exporters, 2020
EU 18.1%
China
43.5%
Republic of Korea
2.2%
US
3.2%
(Source: Adb.org)
Japan
1.6%
Pakistan
2.0%
Vietnam
2.8%
India
4.2%
Turkey
3.3%
Chinese
Talpel 2.0%
Country
China
EU
India
Turkey
US
Vietnam
Republic of Korea
Pakistan
Chinese Talpel
Japan
Share of Total%
43.50%
18.10%
4.20%
3.3%
3.2%
2.8%
2.2%
2.0%
2.0%
1.6%
Disclaimer: This map is a generalised illustration only for the ease of the reader to understand the locations, and it is not intended to be used for reference
purposes. The representation of political boundaries and the names of geographical features/states do not necessarily reflect the actual position. The Company or
any of its directors, officers or employees, cannot be held responsible for any misuse or misinterpretation of any information or design thereof. The Company does
not warrant or represent any kind of connection to its accuracy or completeness.
33
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements In 2020-21, the Indian Textile and Apparel (T&A) production
market was worth USD 106 Billion, with the domestic market
accounting for 70% of demand. It is expected that the
industry will witness a CAGR of 16% over the next five years,
driven by greater exports and sustained domestic market
demand. In 2021-22, India achieved its highest-ever T&A
export total of USD 44.4 Billion, representing a significant rise
of 41% and 26%, above equivalent amounts in 2020-21 and
2019-20, respectively. The Textile industry's market value is
estimated to reach USD 190 Billion by 2025-2026.
Indian apparel and non-apparel
manufacturing market geography
segmentation 2020 (% share, by value)
Figure 3: India
apparel & non-apparel
manufacturing
market geography
segmentation 2020:
% share, by value
China
India
Japan
South Korea
Taiwan
Rest of Asia-Pacific
Textile and Apparel Exports, USD Million
9
3
2
3
3
,
9
1
3
7
,
0
2
9
,
1
3
2
6
3
0
4
,
5
5
5
7
,
7
0
8
2
3
,
3
0
6
7
2
,
2
6
2
8
,
3
0
6
8
2
,
3
0
6
7
2
,
9
6
6
6
,
7
8
5
2
2
,
5
3
9
3
,
2
5
6
8
1
,
4
3
9
0
2
,
2018
2019
2020
2021
2022
Textile and Apparel Imports, Including Handicrafts
Total Textile and Apparel Exports, Including Handicrafts
Trade Balance
Source: EMIS, https://www.ibef.org/industry/textiles
Source: Marketune
34
pearl global industries limited 35
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements Fashion Industry
The Fashion industry was in critical situation
in 2019-20. The year 2020-21, brought many
opportunities for the Company to grow and
recover from the situation, with increasing demand
in the market for fashion and ever-evolving
trends. India’s Apparel market is estimated at
USD 59.3 Billion in 2021-22, and the Indian
Fashion industry is slated to be the 6th largest
market in the world. In recent years, private labels
have emerged as the rising stars of retail and
e-commerce. Private labels or in-house brands,
typically offer shoppers value for money, while
earning higher margins for retailers, with potential
to develop into self-sustaining brands. There is
also a growing emphasis on enriching customer
experience. Window displays, in-store ambience,
coordinated product displays, lighting, music and
communication help build brand presence and
awareness. The fashion sales are expected to
increase in 2021-22, as increasingly optimistic
consumers release pent-up purchasing power
and renewing their wardrobes, with social life
resuming in several important countries across the
world. While the Luxury sector is predicted to fully
recover.
Fashion industry Globally
Total Exports and Imports, ₹ in Billion
0
8
4
5
3
,
4
4
1
,
3
2
9
0
6
3
3
,
8
9
1
,
2
2
9
5
1
,
9
2
0
9
5
,
1
2
0
1
0
0
3
,
5
6
5
9
1
,
9
3
2
3
3
,
4
9
4
8
1
,
2017
2018
2019
2020
2021
Textile and Apparel Exports, USD Million
2018
2019
2020
2020 (Apr-Dec) 2021 (Apr-Dec)
Textile and Apparel Exports
35,666
36,558
33,378
Handicrafts
3,573
3,804
5,564
Total Textile and Apparels, including Handicrafts
39,239
40,362
36,943
24,861
2,742
27,603
20,319
2,268
22,587
Total India Exports
3,03,3763
3,29,536
3,13,139
2,38,274
2,01,295
Share of Total Textile and Apparel Exports in Total
13.0%
12.0%
11.8%
11.6%
11.2%
(Source: https://www.thebusinessresearchcompany.com/report/apparel-global-market-report#:~:text=The%20global%20apparel%20market%20size,at%20a%20
CAGR%20of%208.6%25.)
36
pearl global industries limited Apparels Industry
Menswear, women's clothing, and children's wear
are the three primary categories of the Garment
industry. Women's wear dominates the industry
in India, followed by men's wear and children's
wear. The Garment market may also be divided
into online and offline modes, and luxury and
non-luxury clothes. The Textile and Clothing sector
generates 2.3% of India's GDP, 13% of industrial
production, and 12% of India's exports. The Textile
industry's market value is estimated to reach
USD 190 Billion by 2025-26. The clothing business
alone is predicted to reach USD 135 Billion by
2025-26, accounting for more than 70% of the
overall Textile and Apparel market. Given the
economic sustainability of manufacturing garments
on any size, India's Apparel sector includes
numerous small firms. With technology in the way
and to boost productivity and save operational
costs, apparel manufacturers are investing in
computer-controlled embroidery equipment.
Contribution to India’s
GDP
In Exports of Hand-Weaved Fabric
Producer of all Five Known
Silk Varieties
Contribution to Industrial
Produce
Estimated Size of Domestic Market
Contribution to Total
Exports
Textile and Apparel Exports (Including
Handicrafts) (April-December, 2022)
(Source: EMIS- India Textiles sector, https://www.thebusinessresearchcompany.com/report/apparel-global-market-report#:~:text=The%20global%20apparel%20
market%20size,at%20a%20CAGR%20of%208.6%25.)
*(Source: INDIA TEXTILE SECTOR 2022/2023, EMIS)
37
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements Market Share of Apparels
Market Share of Apparels
The textiles sector shows strong growth prospects after
recovering from the corona virus induced slump. The
Government’s robust support for the textiles sector raises
industry players’ hopes that the sector will grow by 300%
in the next few years, reaching USD 300bn by 2025-2026.
A primary driver of India’s textile sector’s growth is likely to
be apparel brands’ increasing diversification of their supply
chains away from China. Due to increasing manufacturing
costs and growing tariff issues amidst the US-China trade
war, international brands had already been seeking to
reduce their supply chain dependence on China before
COVID-19. Presently, China’s insistence on adhering to a zero
COVID strategy, applying quarantine measures to stamp
out outbreaks as they emerge, risks causing unpredictable
supply chain disruptions.
India’s Domestic Textile and Apparels Market Size
0
9
1
3
1
2
4
5
3
1
Apparel
Technical Textiles
Home Textile
Total
0
5
4
1
1
5
3
8
2
2
5
1
2
6
0
1
8
0
2
8
7
0
0
1
7
9
1
4
7
7
7
7
5
1
5
5
0
9
6
7
1
7
6
0
8
6
5
1
9
5
2006
2011
2016
2018
2019 2020 2021E 2026P
(Source: EMIS- India Textiles sector)
38
5.5%
12.0%
Market Share -
2020
58.3%
24.2%
4.2%
11.4%
Market Share -
2028
59.8%
24.6%
Topwear
Footwear
Bottomwear
Others
Incremental Growth – Topwear
USD 11,474.08 Million
CAGR (2021-2028) 7.3%
(Source: Expert Interviews, Survey, Secondary Research, and The Insight
Partners Analysis)
pearl global industries limited Driving Forces:
The availability of abundant raw materials and capabilities
in value chain of textiles makes India a good base for the
textile industry. The growth of the textile sector is also
supported by favourable demographic factors, such as
growing youth population, rising disposable incomes, rapid
urbanisation, and rising standards of living, among others.
The increasing penetration of digitisation over the years,
which is being provided a great push amid the COVID-19
restrictions, is also supporting the textile market through
growth of the online fashion industry. The technical textiles
segment is also on a rise, led by the growing prevalence
of industries like medical, construction, etc. The anticipated
high GDP growth of India by various international and
national agencies and the demand for Indian textile abroad,
indicate the potential the textile industry of India holds.
39
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements Government Initiatives
For quite some time, the Ministry of Textiles has been
discussing the adoption of a New Textile Policy. This New
Textile Policy was still in draught form, as of October 2021.
The Policy, among other things, is designed to boost
textile exports and provide more job opportunities. It is
being developed through extensive discussions with
organisations, industry groups, State Governments, and
other stakeholders, representing cotton, silk, jute, wool,
handloom, handicrafts, and power loom.
Furthermore, the Government has been supportive to the
Textile sector, with its extensive growth-oriented policies
such as Make in India, Aatmanirbhar Bharat, Production-
Linked Incentive Scheme, Mega Textile Parks, Revised
Restructured Technological Upgradation Fund Scheme
(RRTUFS), liberalised FDI in textile, and many more.
The Union and State Governments continued to roll out
various support initiatives for the textiles sector in H2
2021-22 and into 2022-23. In August 2021, the Union
Ministry of Textiles, Commerce and Industry, Consumer
Affairs & Food and Public Distribution announced the
establishment of a committee comprising weavers,
trained equipment makers, marketing experts and other
stakeholders to recommend ways to boost production
capacity in the handloom sector from ₹ 600 Billion to
₹ 1.25 Trillion and quadruple exports from ₹ 25 Billion to
₹ 100 Billion, within three years.
(Source: EMIS Insights)
The Union Government allocated ₹ 123.8 Billion for the
textile sector in its Union Budget 2022-23 of which
₹ 1.3 Billion will be used for the Textile Cluster
Development Scheme, ₹ 1.0 Billion for the National
Technical Textiles Mission and ₹ 150 Million each for
the PM Mega Integrated Textile Region, Apparel Parks
scheme, and the Production-Linked Incentive Scheme.
(Source: EMIS Insights)
The Federal Indian Government, approved the
continuance of the Rebate of State and Central Taxes
and Levies (RoSCTL) at the same rates as issued by
the Ministry of Textiles for apparel/garments and made-
ups exports. Garment exporters will continue to get
a tax rebate on their outbound shipments, after the
Government extended the RoSCTL. This measure is
intended to boost the competitiveness of the labour-
intensive Textile industry.
40
pearl global industries limited
MITRA Scheme
Under the scheme, seven mega parks
will be set up in the country over the
upcoming three years with plug and
play facilities, in a bid to create global
champions in exports.
Extension of RoSCTL
Scheme
The extension is likely to benefit
exporters of Apparel/Garment and
Home Textiles products, since the
extension till March 31, 2024, ensures
a stable and predictable policy regime
for three years.
Notification of
RoDTEP Rates
The announcement is likely to benefit
the entire value chain of textiles, since
exporters can now claim rebate either
under RoSCTL or RoDEP theme.
Free Trade
Agreement
With the IndAUS ECTA, India’s exports
of textiles and apparels are expected
to go up to USD 1,100 Million in the
next three years.
corporate overview
statutory reports
financial statements
Key Trends
Omnichannel Takes Precedence
Earlier, brands believed in building a multi-channel marketing experience where the aim was to reach far
and wide. Marketers are now looking at going deeper, than wider and therefore, are focusing on fewer
platforms, but enriching the user experience there. However, omnichannel focuses on quality rather than
quantity, which is making brands ace their marketing games on platforms, especially like Instagram and
of course, the e-Commerce platforms.
On the e-Commerce platform and online shops, a great customer experience is entailing easy to access
information about the clothes and is providing hands on support with scrollable content. This works
very well in the post-pandemic-led ‘back to office’ time where formal wear for women is taking over and
more and more brands are highlighting this segment via their social media handles, giving viewers a feel
of their office fashion.
Fashion Influencers Take Over
Social media platforms remove the obstacles and help establish a more direct connection, where
consumers can share their ideas or grievances. It is also great for product development and becoming a
consumer-friendly brand. It is difficult to overlook the importance of influencers, especially the micro-
influencers who create more reasonable and resonating content. This relatability has helped them
amass true and loyal following that tends to trust their opinions about fashion and lifestyle. Brands are
seeking this camaraderie between the two and use it to build a tangible presence in the social media
community, where they are in direct touch with the customers.
Influx of New Technologies
The meta verse has already infiltrated the fashion industry globally and it is only a matter of time that it
becomes a vital part of the Indian market as well. For instance, retailers can easily deploy virtual fashion
to build a hands-on catalogue instead of going for physical dresses that includes time and money.
Another important contribution of Web-3 technology can be its lack of contribution to carbon emissions.
No logistics, hyper-production or deployment of extra equipment means less resource reliability and
more sustainability.
Sustainable Fashion
Sustainability is in rage and for all the right reasons. In contrast to fast fashion that relies on use and
throw models, without considering the rising landfills, sustainable fashion believes in slow production
and implementation of organic practices. Several brands are incorporating natural fibres only, like hemp
jute to create durable products. During such processes, the raw materials do not demand an exorbitant
amount of natural resources and when discarded, go back to the earth without causing any harm.
Such practices are not only good for earth but for traditional communities as well, that are often skilled
at creating sustainable products. This can help boost the Indian economy as well.
annual report 2021-22
41
Industry Outlook
Company Overview
Pearl Global Industries Limited, is a worldwide clothing
manufacturing corporation that provides end-to-end
supply chain solutions to global brands with our
integrated production capabilities centred on Design
and Development, Global Manufacturing, Marketing
and Distribution, and Sourcing and Supply Chain. The
Company develops apparels for all genders and age
groups across locations and style preferences. The
Company has 21 state-of-the-art manufacturing plants
across four countries, including India (Gurugram,
Chennai and Bengaluru), Indonesia, Bangladesh,
Vietnam and has design centres in India, Indonesia,
Bangladesh, Vietnam, U.S.A, Spain, Hong Kong and
U.K.
Our product portfolio includes outer wear, active
wear, children’s wear, denim (for both men and
women. We are a well-diversified company with a
de-risked manufacturing base, having multinational
presence. Our business is primarily focused on
export services, with USA contributing the highest
amongst all countries. Our marquee clientele includes
Kohls, Macy’s, Tommy Hilfiger, Gap, Old Navy, NEXT,
Nordstrom, among others.
India is one of the favourite business locations for global
retailers. According to the Global Retailer Development
Index, retail in developing countries has grown
tremendously. As the developing world's population has
grown by 21% to 6.2 Billion, retail sales in those markets
have increased more than 350% and represent more than
half of total global retail sales. India was ranked second,
with retail sales of USD 1,009 Billion among 30 emerging
markets. India’s huge market potential, fast growth and
improved ease of doing business moved it into second
place. India is now the world’s fastest-growing major
economy, overtaking China. In e-commerce, the Indian
Government now permits 100% FDI for online marketplaces,
with some caveats to create a level playing field. Overall,
the rule is expected to boost market entry in the online
space. This has increased the demand for apparel and non-
apparel manufacturing in the country, thus creating demand
amongst manufacturers.
Company Outlook
With the opening up of activities we are confident about
our future. Our capabilities and partnerships will help
us drive the next set of growth helping us benefit from
the tailwinds in demand from international markets. Our
multinational presence will enable us to cater to clients
across geographies, thereby moving with the trend and
offering the best of the industry. With further normalisation
of COVID-19 situation and change in consumers’ buying
preferences will help us retain strong traction. We will
continue to deploy strategies that will help us improve
capacity utilisations. The commencement of Bangladesh
factory and partnership facility in India and Vietnam will
further help us leverage our expertise to strengthen our
brand presence in the industry.
42
pearl global industries limited Manufacturing Strengths
Maps
Location
No. of Units Annual Capacity Specialisation
India
8
28 Million pieces
p.a.
Woven and knitted products, including women’s
fashion wear, men’s wear and kid’s wear. South
factories make women’s tops and dresses
Bangladesh
8
45 Million pieces
p.a.
Woven and knitted tops and bottoms for men,
women and kids
Vietnam
Indonesia
3
2
4.5 Million
pieces p.a.
Multiple products, including outerwear and jackets
including down jackets, woolen jackets & coats,
seam-sealed jackets, puffers, parka’s, blazers,
anoraks, swim trunks and synthetic bottoms
3 Million pieces
p.a.
Women's professional wear, performance wear,
activewear, woven tops & dresses, sleepwear and
loungewear
Design and Office Studios Offices
Maps
Location
Specialisation
Hong Kong
Design Studio and Sales Office
Spain
Denim jackets, denim bottoms and more
UK
Jerseys, wovens, denims, outerwear, sleepwear, loungewear, beachwear and kids
wear
New York
Market intelligence for knits, woven, denim, outerwear, activewear, sleepwear/
loungewear and children wear category
43
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements Business Performance
The Company recorded a Gross Income of ₹ 2,713.5 Crores, compared to ₹ 1,490.9 Crores in previous financial year. The Net
Profit Before Tax stands at ₹ 85.8 Crores, compared to ₹ 11.3 Crores in the previous financial year.
Segment-wise Performance
Region-wise Performance (₹ Crores)
45%
Woven
Knit
55%
India
Rest of the World
1,780
934
Financial Highlights
Profit and loss (₹ in Crores
unless otherwise stated)
2021-22
2020-21
2019-20
2018-19
2017-18
Revenue from Operations
2,713.5
1,490.9
1,685.1
1,757.5
1,496.0
EBITDA
EBITDA Margin (%)
Other Income
Profit Before Tax
Profit After Tax
Profit After Tax Margin (%)
Earnings per Share (₹)
140.6
5.2%
33.5
85.8
70.1
2.6%
31.5
60.6
4.1%
23.5
11.4
17.5
1.2%
8
66.9
4.0%
49.1
31.2
21.7
1.3%
9.9
88.1
5.0%
33.9
82.9
67.1
3.8%
31.0
24.8
1.7%
47.6
32.4
23.1
1.5%
11.1
During the year, the Revenue from Operations stood at ₹ 2,713.5 Crores, registering a growth of 82%, as compared ₹ 1,490.9
Crores in 2020-21. This growth can be attributed to the 147% YoY growth in overseas business, increase in revenue from
partnership facility in India and Vietnam, start of commercial production in Bangladesh factory and 65% YoY increase in number
of pieces shipped.
44
pearl global industries limited Cost of goods contributed the highest to the total expenses at ₹ 1,510.6 Crorers, as compared to last year’s expense of
₹ 768.9 Crores and our Gross Profit Margins, were seen lower at 44.3% as compared to 48.4% in 2020-21 due to Lower
margins due to change in product mix.
Employee and Other Expenses were recorded at ₹ 152.2 Crores and ₹ 325.3 Crores, respectively during the year. Our
Employee cost as percentage of sales has declined from 22% to 17%. EBITDA was recorded at ₹ 140.6 Crores as compared to
₹ 60.6 Crores in the previous year. Higher contribution from knit business supported this growth.
Finance cost as percentage of sales has declined from 2.8% to 1.7%.
Financial Ratio
SN Particulars
2021-22
2020-21
Change
1
2
3
4
5
6
7
8
9
Interest Coverage Ratio (x) @
Current Ratio (x)
Debt Equity Ratio (x) ^
Operating Profit Margin (%) #
Net Profit Margin (%) $
Return on Net Worth (%)
Debtors Turnover Ratio (x)
Inventory Turnover Ratio (x)
Return on Capital Employed (%) **
3.46
1.37
0.92
4.1%
2.6%
11.4%
7.40
2.80
11.3%
1.33
1.47
0.69
2.5%
1.2%
3.3%
6.16
2.76
5.7%
2.13
-0.10
0.23
1.6%
1.4%
8.1%
1.24
0.04
5.7%
@Interest coverage ratio is calculated as Earnings Before Interest, and Tax (including other income) over Interest. Interest denotes
interest to the financial institutions on short term and long term borrowings and interest on lease liabilities. The change is attributable
to 165% increase in Earnings Before Interest, and Tax vs. 2% increase in Interest.
^Debt equity ratio is calculated as Total Borrowings over Total Equity (including Non Controlling Interest) of the Company. Borrowings
denote short term and long term borrowings from financial institutions. The change is attributable to an increase in Total Debt and
increase in Total Equity due to higher Profit After Tax.
#Operating profit margin is calculated as Earnings Before Interest and Tax (including Other Income) over Revenue from Operations of
the Company. The change is attributable to better efficiency in operations.
$Net profit margin is computed as Profit after Tax over Revenue from Operations. The change is attributable to increase in Earnings
Before Interest and Tax.
**Return on capital employed is calculated as Earnings Before Interest and Tax over Total Equity plus Net Debt. The return on capital
employed improved during the year because of increase in Earning Before Interest and Tax.
45
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements Risks Management and
Concerns
Risks are an inherent element of any organisations, and
sufficient structures and procedures, helps in timely
detection and mitigation of the same. The safety of all
parties engaged is of the highest concern to the Company,
as we deliver on our obligations. We constantly observe the
environment in which we operate, in order to identify any
new uncertainties and risks that may arise, so that proactive
efforts can be taken to reduce them.
There are no hazards to the Company's continued existence.
The Company has identified Business Dynamics Risk,
Market Risks/Industry Risks, Political Risks, Environment
Risks, Disaster Risks, Liquidity Risks, Credit Risks, Foreign
Exchange Risks, Human Resource Risks, Environmental
Risk and Legal Risks. We also have a detailed action plan to
mitigate the identified risks and concerns.
Robust Risk Mitigation Practices
Customer
Retention and Growth
Direct relationships with all the customers
and continuous monitoring of the
developments in customer’s market
Payment Security
Credit assessment before on-boarding a
new customer and ensuring pre-shipment
and post-shipment coverage
Product
Quality
Quality systems and practices aligned
closely with customer’s expectations
Constant touch with customer
representatives to facilitate process
improvements
Customer-certified pearl associates to
certify the products on their behalf
Raw Material
Prices and Supply Chain
Early projection and booking of raw
materials
Strategic and transparent relationship
with key suppliers
Inventory
All production is against confirmed
sale orders
Periodic review or physical count and
utilisation of stock
46
pearl global industries limited The Company has adequate systems of internal controls to
ensure that transactions are properly recorded, authorised
and reported apart from safeguarding Pearl Global’s assets.
The Company has successfully implemented SAP for our
manufacturing units and will continue upgrading the same.
We have our 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. We has successfully implemented
SAP for our manufacturing units and will continue upgrading
the same.
Currency
Fluctuation
With natural hedge in all overseas
operations, Indian-export is also looking
forward to cover the import-only minimal
procurement
Social and Ethical
Compliance
Non-Compliance
Robust internal control and
compliance system
Regular monitoring and implementing
immediate corrections
Onboarding of customers only after
ensuring complete compliance
standard
Cashflow
Debt Repayment and Servicing
Resources ensure collection on time
Internal Control System
The Company’s internal control system has been
designed to provide for:
Accurate recording of transactions with internal checks
and prompt reporting through SAP
Adherence to applicable accounting standards and
policies
Review of capital investments and long-term business
plans
Periodic review meetings, to manage effective
implementation of system
Compliance with applicable statutes, policies, listing
requirements and operating guidelines
Effective use of resources and safeguarding of assets
IT systems with in-built controls to facilitate all of the
above
Human Resource
Management
The Company’s forward-thinking and employee-centric
human resource department is devoted, to provide effective
policies, procedures, people-friendly guidelines and support
governance within the organisation. Our HR philosophy
revolves around right people for the right job, maintaining
a safe, hygienic, and sustainable work environment across
geographies. We ensure capability building at all levels
with programmes, such as iLEAD [Leadership Development
Programme], SEED [Operational Development Programme],
innovate with technology with our Human Resource
Management System, Pay for Performance [Achieve: Pearl’s
Performance Management System]. Thereby, building
a PearlONE culture, with employee engagement being
centric of all our HR initiatives. As on March 31, 2022, 19,094
employees were on Company’s payroll.
47
AnnuAl report 2021-22corporAte overviewstatutory reportsfinAnciAl stAtements
Pearl Global’s Programmes for the
Community:
Health and Medical: Health
Camps for workers across all
our facilities, every quarter.
Education: Scholarship
funded education, for more
than 200 primary and middle
school children.
Women Empowerment:
• Personal Advancement
and Career Enhancement
(P.A.C.E.), empowering
women in their
professional and personal
lives
• Training on menstrual
hygiene and sanitary
napkins vending machine
• HER health programme
to raise health-related
awareness
• Gender equality project,
in partnership with Mands
British High Commission
• Leadership Hiring –
Top-notch leadership
team Hiring in the U.K.
and U.S.A. offices
• Employee Welfare –
Company-sponsored
Covid-19 vaccination
drive for all our
employees across the
India’s Pearl Global
factories
Initiating Various Projects:
• Reviewing Pearl Global
brand
• Revamping the website
• Reviewing the mission
and vision of the
organisation
• Initiating the
performance
management process
for all employees
across all locations
• Digitising HR
processes
My Voice: Third-party
ethics helpline for whistle
blowing of unethical
practices, POSH issues
and violation of code of
conducts at workplace
Cautionary Statements
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 realised and actual results, performance or achievements could thus, differ materially from
those projected in any such forward looking statements.
48
pearl global industries limited
NOTICE
PEARL GLOBAL INDUSTRIES LIMITED
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; 0124-4651000, Website: www.pearlglobal.com; e-mail: investor.pgil@pearlglobal.com
CIN: L74899DL1989PLC036849
NOTICE TO MEMBERS
Notice is hereby given that the 33rd Annual General Meeting
of the Members of Pearl Global Industries Limited will be
held on Monday, September 26, 2022, at 5:00 PM through
Video Conferencing
(“VC”)/other Audio-Visual Means
(“OAVM”) (“hereinafter referred to as “electronic mode”) to
transact the following businesses:
ORDINARY BUSINESS
1.
2.
3.
4.
To receive, consider and adopt the Standalone and
Consolidated Audited Financial Statements of the
Company for the financial year ended March 31, 2022,
including the Reports of the Board of Directors and
Auditors thereon.
To appoint a Director in place of Mrs. Shifalli Seth
(DIN 01388430), who retires by rotation and being
eligible, offers herself for re-appointment.
To appoint a Director in place of Mr. Shailesh Kumar
(DIN 08897225), who retires by rotation and being
eligible, offers himself for re-appointment.
To appoint M/s. S.R. Dinodia & Co. LLP, Chartered
Accountants, New Delhi (Firm’s Registration No.
001478N/N500005) as Statutory Auditors.
To consider and, if thought fit, to pass with or without
modification(s), the following Resolution as an Ordinary
Resolution:
“RESOLVED THAT pursuant to Section 139, 142 and
other applicable provisions, if any, of the Companies
Act, 2013 read with the Companies (Audit and Auditors)
Rules, 2014, (including any statutory modification(s)
or amendment(s) thereto or re-enactment(s) thereof
for the time being in force) and pursuant to the
recommendation of the Audit Committee and the
Board of Directors, M/s. S. R. Dinodia & Co. LLP,
Chartered Accountants
(Firm’s Registration No.
001478N/N500005), be and are hereby appointed as
Statutory Auditors of the Company in place of M/s.
B. R. Gupta & Co., Chartered Accountants, the retiring
Statutory Auditors, to hold office for a first term of 5
(five) consecutive years from the conclusion of this
Annual General Meeting until the conclusion of the 38th
Annual General Meeting, on such remuneration as may
be decided by the Board of Directors of the Company
on the recommendation of the Audit Committee from
time to time.
RESOLVED FURTHER THAT the Board of Directors
including any Committee thereof be and is hereby
authorised to take all such steps and do all such acts,
deeds, matters and things as may be necessary, proper
or expedient to give effect to this resolution.”
By order of the Board of Directors
for Pearl Global Industries Limited
(Pallab Banerjee)
Managing Director
DIN 07193749
Place: Gurugram
Date: August 13, 2022
NOTES:
1.
In view of the prevailing COVID-19 pandemic scenario,
the Ministry of Corporate Affairs (‘MCA’) vide its
General Circular No. 20/2020 dated May 5, 2020 read
with General Circular Nos. 02/2021, 17/2020, 14/2020
& 2/2022 dated January 13, 2021, April 13, 2020,
April 8, 2020, May 5, 2022 respectively (collectively
referred to as ‘MCA Circulars’) and Securities and
Exchange Board of India (‘SEBI’) vide its Circular No.
SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated May 12,
2020 read with Circular No. SEBI/HO/CFD/CMD2/
CIR/P/2021/11 dated January 15, 2021 and SEBI/
HO/CFD/CMD2/CIR/P/2022/62 dated May 13, 2022
(‘SEBI Circular’) have permitted the holding of Annual
General Meeting by companies through VC / OAVM
during the calendar year 2021 and 2022, without the
physical presence of the Members. Accordingly, in
compliance with the provisions of the Companies Act,
2013 (‘Act’), Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015
(‘Listing Regulations’), MCA
Circulars and SEBI Circular, the 33rd AGM of the
is being conducted through VC/OAVM
Company
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 33rd
AGM.
49
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
Since the AGM will be held through VC / OAVM, the
Route Map is not annexed in this Notice.
owners (in case of electronic shareholding) as on the
cut-off date i.e. Monday, September 19, 2022.
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 herewith.
9.
NOTICE (Contd.)
2.
3.
4.
5.
6.
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.
Corporate members intending to send their authorised
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
The Members may join the 33rd 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 33rd AGM and
the Company may close the window for joining the VC/
OAVM facility 30 (thirty) minutes after the scheduled
time to start the 33rd 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 33rd AGM without any restriction on
account of ‘first come first served’ basis.
7.
The attendance of the Members participating in the
33rd AGM through VC/ OAVM facility shall be counted
for the purpose of reckoning the quorum under Section
103 of the Act.
8.
Voting rights shall be reckoned on the paid-up value
of shares registered in the name of member/beneficial
50
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 2021-22 including Notice of the 33rd 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.
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 33rd AGM of the Company will also be available
on the website of the Company at 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 (“Link Intime”) at
https://instavote.linkintime.co.in.
Pursuant to Section 91 of the Act, the Register of
Members of the Company will remain closed from
Tuesday, September 20, 2022, to Monday, September
26, 2022 (both the days inclusive).
in electronic form are
Members holding shares
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
form are requested to advise any change of address
immediately to the Company’s Registrar and Share
Transfer Agent, Link Intime 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.
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, Link Intime.
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,
10.
11.
12.
13.
14.
PEARL GLOBAL INDUSTRIES LIMITED NOTICE (Contd.)
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.
15.
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.
16.
In terms of the SEBI Listing Regulations, securities
of
in
listed companies can only be transferred
dematerialised form with effect from April 1, 2019.
In view of the above, Members are advised to
dematerialise shares held by them in physical form.
17.
The Board of Directors have in its meeting held on May
25, 2022, declared interim dividend of ` 5/- per equity
shares for the financial year 2021-22. The record date
to determine eligibility of members was June 8, 2022
for payment of interim dividend.
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 (“IEPF”) 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:
Financial year ended
Rate of Dividend per
equity share
Date of declaration of
Dividend
Last date for claiming
unpaid Dividend
Due date for transfer
to IEPF
March 31, 2015
March 31, 2016
March 31, 2016
March 31, 2017
March 31, 2018
March 31, 2019
March 31, 2022
` 2.25/- (Final)
` 2.50/- (Interim)
` 0.50/- (Final)
` 3.00/- (Final)
` 2.00/- (Final)
` 3.00/- (Final)
` 5.00/- (Interim)
September 22, 2015
March 11, 2016
September 27, 2016
September 28, 2017
September24, 2018
September 24, 2019
May 25, 2022
October 20, 2022
April 9, 2023
October 26, 2023
October 27, 2024
October 23, 2025
October 23, 2026
June 24, 2029
November 19, 2022
May 8, 2023
November 25, 2023
November 26, 2024
November 22, 2025
November 22, 2026
July 23, 2029
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 Private Limited, Noble Heights, 1st Floor, Plot NH-2, C-1
Block LSC, Near Savitri Market, Janakpuri, New Delhi-110058.
Members who wish to obtain any information about the Company or the financial statements for the financial year ended
March 31, 2022, send their queries at investor.pgil@pearlglobal.com at least 7 (Seven) days before the date of 33rd AGM.
The same will be replied by/ on behalf of the Company suitably.
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. electronically from the Company. Members can do
this by updating their email addresses with their depository participants.
18.
19.
20.
In case of joint holders attending the 33rd 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.
21. E-VOTING
In compliance with provisions of Section 108 of the Company’s Act 2013 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 33rd AGM using
electronic voting system (‘remote e-voting’) and e-voting (during the 33rd AGM), provided by Link Intime and the businesses
may be transacted through such voting.
51
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
NOTICE (Contd.)
Only those Members who will be present in the 33rd 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 33rd AGM.
The voting period begins on Friday, September 23, 2022 (9.00 AM IST) and ends on Sunday, September 25, 2022 (5.00 PM
IST). During this period, Members holding shares either in physical or dematerialised form, as on cut-off date, i.e., as on
Monday, September 19, 2022 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 33rd 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.
A.
PROCESS AND MANNER FOR ATTENDING THE ANNUAL GENERAL MEETING THROUGH INSTAMEET:
Open the internet browser and launch the URL: https://instameet.linkintime.co.in.
Select the “Company” and ‘Event Date’ and register with your following details: -
A. Demat Account No. or Folio No: Enter your 16 digit Demat Account No. or Folio No
Shareholders/ members holding shares in CDSL demat account shall provide 16 Digit Beneficiary ID
Shareholders/ members holding shares in NSDL demat account shall provide 8 Character DP ID
followed by 8 Digit Client ID
Shareholders/ members holding shares in physical form shall provide Folio Number registered with the
Company
B.
PAN: 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. Mobile No.: Enter your mobile number
D. Email ID: 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.
INSTRUCTIONS FOR SHAREHOLDERS/ MEMBERS TO SPEAK DURING THE ANNUAL GENERAL MEETING THROUGH
INSTAMEET:
a.
Shareholders who would like to speak during the meeting must register their request 7(Seven) days in advance i.e. on
or before September 20, 2022, with the Company on the specific email id i.e. investor.pgil@pearlglobal.com.
b. Shareholders will get confirmation on first cum first basis.
c.
Shareholders will receive “speaking serial number” once they mark attendance for the meeting.
d. Other shareholder may ask questions to the panellist, via active chat-board during the meeting.
e.
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.
INSTRUCTIONS FOR SHAREHOLDERS/ MEMBERS TO VOTE DURING THE ANNUAL GENERAL MEETING THROUGH
INSTAMEET
Once the electronic voting is activated by the scrutiniser/ 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”
52
PEARL GLOBAL INDUSTRIES LIMITED
NOTICE (Contd.)
2.
3.
4.
5.
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’.
After successful login, you will see “Resolution
Description” and against the same the option
“Favour/ Against” for voting.
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’.
After selecting the appropriate option i.e. Favour/
Against as desired and you have decided to
vote, click on “Save”. A confirmation box will be
displayed. If you wish to confirm your vote, click
on “Confirm”, else to change your vote, click on
“Back” and accordingly modify your vote.
6.
Once you confirm your vote on the resolution, you
will not be allowed to modify or change your vote
subsequently
Note:
•
Shareholders/ Members, who will be present in
the Annual General Meeting through InstaMeet
facility and have not casted their vote on the
Resolutions through remote e-Voting and are
otherwise not barred from doing so, shall be
eligible to vote through e-Voting facility during
the meeting. Shareholders/ Members who have
voted through Remote e-Voting prior to the
Annual General Meeting will be eligible to attend/
•
•
•
•
participate in the Annual General Meeting through
InstaMeet. However, they will not be eligible to
vote again during the meeting.
Shareholders/ Members are encouraged to join
the Meeting through Tablets/ Laptops connected
through broadband for better experience.
Shareholders/ Members are required to use
Internet with a good speed (preferably 2 MBPS
download stream) to avoid any disturbance
during the meeting.
that
note
Shareholders/Members
Please
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
D.
REMOTE
SHAREHOLDERS:
E-VOTING
INSTRUCTIONS
FOR
As per the SEBI circular dated December 9, 2020,
individual shareholders holding securities in demat
mode can register directly with the depository or will
have the option of accessing various ESP portals
directly from their accounts.
LOGIN METHOD FOR INDIVIDUAL SHAREHOLDERS
Type of shareholders
Login Method
1.
Individual
Shareholders holding
securities in demat
mode with NSDL
Existing IDeAS user can visit the e-Services website of NSDL viz... https://eservices.nsdl.
com either on a personal computer or on a mobile. On the e-Services home page click on
the “Beneficial Owner” icon under “Login”” which is available under ‘IDeAS’ section, this will
prompt you to enter your existing User ID and Password. After successful authentication,
you will be able to see e-Voting services under Value added 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 i.e. LINKINTIME and you will be re-
directed to “InstaVote” website for casting your vote during the remote e-Voting period.
2.
If you are 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
53
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
NOTICE (Contd.)
Type of shareholders
Login Method
Individual
Shareholders holding
securities in demat
mode with CDSL
3.
1.
2.
3.
4.
Visit the e-Voting 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-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 i.e. LINKINTIME and you will be redirected to “InstaVote”
website for casting your vote during the remote e-Voting period.
Existing users who have opted for Easi / Easiest, 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 able to see the E Voting Menu. The
Menu will have links of e-Voting service provider i.e. LINKINTIME. Click on LINKINTIME
and you will be redirected to “InstaVote” website for casting your vote during the remote
e-Voting period.
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 i.e. LINKINTIME.
Click on LINKINTIME and you will be redirected to “InstaVote” website for casting your vote
during the remote e-Voting period.
Individual
Shareholders (holding
securities in demat
mode) & login through
their depository
participants
You can also login using the login credentials of your demat account through your Depository
Participant registered with NSDL/CDSL for e-Voting facility. Upon logging in, you will be able to
see e-Voting option. 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 i.e. LINKINTIME and you will be redirected to “InstaVote”
website for casting your vote during the remote e-Voting period.
Individual
Shareholders holding
securities in Physical
form / Non-Individual
Shareholders holding
securities in demat
mode.
Individual Shareholders of the Company, holding shares in physical for / Non-Individual
Shareholders holding securities in demat mode as on the cut-off date for e-voting may register
for e-voting facility of Link Intime as under:
1. Open the internet browser and launch the URL: https://instavote.linkintime.co.in
2. Click on “Sign Up” under ‘SHARE HOLDER’ tab and register with your following details: -
A.
B.
User ID: Shareholders/ members holding shares in physical form shall provide Event
No + Folio Number registered with the Company. Shareholders holding shares in NSDL
demat account shall provide 8 Character DP ID followed by 8 Digit Client ID; Shareholders
holding shares in CDSL demat account shall provide 16 Digit beneficiary ID.
PAN: 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.
54
PEARL GLOBAL INDUSTRIES LIMITED
NOTICE (Contd.)
Type of shareholders
Login Method
C.
D.
DOB/DOI: Enter the Date of Birth (DOB) / Date of Incorporation (DOI) (As recorded with
your DP / Company - in DD/MM/YYYY format)
Bank Account Number: Enter your Bank Account Number (last four digits), as recorded
with your DP/Company.
•
•
Shareholders/ members holding shares in physical form but have not recorded
‘C’ and ‘D’, shall provide their Folio number in ‘D’ above.
Shareholders holding shares in NSDL form, shall provide ‘D’ above.
3.
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).
4.
Click “confirm” (Your password is now generated).
Cast your vote electronically:
1. After successful login, you will be able to see the notification for e-voting. Select ‘View’ icon.
2.
3.
4.
E-voting page will appear.
Refer the Resolution description and cast your vote by selecting your desired option ‘Favour
/ Against’ (If you wish to view the entire Resolution details, click on the ‘View Resolution’
file link).
After selecting the desired option i.e. Favour / Against, click on ‘Submit’. A confirmation box
will be displayed. If you wish to confirm your vote, click on ‘Yes’, else to change your vote,
click on ‘No’ and accordingly modify your vote.
GUIDELINES FOR INSTITUTIONAL SHAREHOLDERS:
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 ‘Custodian / Mutual Fund / Corporate
Body’. 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
‘Custodian / Mutual Fund / Corporate Body’ login for the Scrutiniser to verify the same.
Helpdesk for Individual Shareholders holding securities in physical mode/ Institutional shareholders:
Shareholders facing any technical issue in login may contact Link Intime INSTAVOTE helpdesk by sending a request at
enotices@linkintime.co.in or contact on:- Tel: 022 – 4918 6000.
Helpdesk for Individual Shareholders holding securities in demat mode:
Individual Shareholders holding securities in demat mode may contact the respective helpdesk for any technical issues
related to login through Depository i.e. NSDL and CDSL.
Login type
Individual Shareholders holding
securities in demat mode with
NSDL
Individual Shareholders holding
securities in demat mode with
CDSL
Helpdesk details
Members facing any technical issue in login can contact NSDL helpdesk by sending a
request at evoting@nsdl.co.in or call at toll free no.: 1800 1020 990 and 1800 22 44 30
Members facing any technical issue in login can contact CDSL helpdesk by sending
a request at helpdesk.evoting@cdslindia.com or contact at 022- 23058738 or 22-
23058542-43.
55
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
NOTICE (Contd.)
Individual Shareholders holding securities in Physical
mode has forgotten the password:
If an Individual Shareholders holding securities in
Physical mode has forgotten the USER ID [Login ID]
or Password or both then the shareholder can use the
“Forgot Password” option available on the e-Voting
website of Link Intime: https://instavote.linkintime.
co.in
•
•
Click on ‘Login’ under ‘SHARE HOLDER’ tab and
further Click ‘forgot password?’
Enter User ID, select Mode and Enter Image
Verification code (CAPTCHA). Click on “SUBMIT”.
In case shareholders is having valid email address,
Password will be sent to his / her registered e-mail
address. Shareholders can set the password of his/
her choice by providing the information about the
particulars of the Security Question and Answer, PAN,
DOB/DOI, Bank Account Number (last four digits) etc.
as mentioned above. The password should contain
minimum 8 characters, at least one special character
(@!#$&*), at least one numeral, at least one alphabet
and at least one capital letter.
User ID for Shareholders holding shares in Physical
Form (i.e. Share Certificate): Your User ID is Event No +
Folio Number registered with the Company
Individual Shareholders holding securities in demat
mode with NSDL/ CDSL has forgotten the password:
Shareholders 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”.
CS Jayant Sood (C.P. No. 22410) proprietor of M/s
Jayant Sood and Associates (Company Secretaries)
has been appointed as the Scrutiniser to scrutinise the
remote e-voting process and voting during 33rd AGM in
a fair and transparent manner.
The Scrutiniser 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 Scrutiniser’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.
The Results shall be declared on or after the AGM of
the Company. The Results declared along with the
Scrutiniser’s Report shall be placed immediately on
the Company’s website www.pearlglobal.com and on
the website of Link Intime India Private Limited and
communicated to the BSE Limited and National Stock
Exchange of India Limited simultaneously.
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 dematerialised form may contact
their respective Depository Participants for recording
of nomination.
22.
23.
24.
25.
56
PEARL GLOBAL INDUSTRIES LIMITED
NOTICE (Contd.)
EXPLANATORY STATEMENT
As required by Section 102 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 and Secretarial Standard-2, the following Explanatory Statement sets out the material facts relating to the businesses
under Item Nos. 2 to 4 of the accompanying Notice.
Details of Directors seeking re-appointment at the forthcoming annual general meeting:
Item no. 2: Mrs. Shifalli Seth (DIN 01388430)
Age
Qualifications
Experience (including expertise in specific functional area)
/ Brief resume
Date of first appointment on the Board
Shareholding in the Company as on March 31, 2022
Directorships and Committee memberships held in other
companies as on March 31, 2022
Inter-se relationships between Directors, Manager and
other Key Managerial Personnel
No. of Board Meetings attended during the financial year
2021-22
Terms and conditions of re-appointment
Details of
remuneration
last drawn
remuneration and proposed
Item no.3: Mr. Shailesh Kumar (DIN 08897225)
Age
Qualifications
Experience (including expertise in specific functional area)
/ Brief resume
Date of first appointment on the Board
Shareholding in the Company as on March 31, 2022
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
41 Years
Bachelor of Science in Business Administration from
University of Bradford, U.K.
She has varied exposure
in Garments and Textiles
Industry including Design & Product Development. She is
having international experience in trading, marketing of
Readymade Garments and knowledge of Southeast Asia
region.
January 19, 2012
2,01,478 Equity shares.
She holds directorship in the following Companies:
(i) Pearl Global Kaushal Vikas Limited
(ii) SBUYS E-Commerce Limited
(iii) PS Arts Private Limited
She holds membership in Finance Committee of the
Company.
She is spouse of Mr. Pulkit Seth, Vice-Chairman and
immediate relative of Mr. Deepak Seth, Chairman of your
Company.
1
All terms and conditions of appointment as per applicable
polices of the Company. As a Director he is liable to retire
by rotation.
Last drawn remuneration: ` 75 Lakhs per annum
Proposed remuneration: Nil
53 Years
Bachelor degree in Science from Magadh University, Post
Graduate Diploma in Personnel Management & Industrial
Relations from LNMI Patna and Diploma in Labour Laws
with Administrative Law from Annamalai University.
Having more than 28 years of experience in the field of HR
and Personnel Management and Labour Laws Compliances
and currently heading HR functions of the Company.
October 7,2020
Nil
57
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS NOTICE (Contd.)
Directorships and Committee memberships held in other
companies as on March 31, 2022
Inter-se relationships between Directors, Manager and
other Key Managerial Personnel
No. of Board Meetings attended during the financial year
2021-22
Terms and conditions of re-appointment
Details of
remuneration
last drawn
remuneration and proposed
:
:
:
:
:
themselves
Mrs. Shifalli Seth and Mr. Shailesh Kumar, the retiring
Directors, being eligible, offers
re-
appointment. The Board of Directors of your Company
propose to appoint Mrs. Shifalli Seth and Mr. Shailesh
Kumar as Directors, liable to retire by rotation and therefore
is recommended for approval of the
this Resolution
Shareholders of the Company.
for
None of the Directors & Key Managerial Personnel, except
Mrs. Shifalli Seth, Mr. Shailesh Kumar themselves and Mr.
Deepak Seth and Mr. Pulkit Seth, being immediate relatives
of Mrs. Shifalli Seth, 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.
Item No. 4: Appointment of M/s S. R. Dinodia & Co. LLP,
Chartered Accountants as Statutory Auditors of the
Company
M/s B.R. Gupta & Co., Chartered Accountants, (Firm’s
Registration No. 008352N), were appointed as the Statutory
Auditors of the Company at the 28th Annual General Meeting
(“AGM”) of the Company held on September 28, 2017,
to hold office from the conclusion of the 28th AGM till the
conclusion of the 33rd AGM. Accordingly, the first term of the
existing statutory auditors expires on the conclusion of the
forthcoming AGM.
In terms of the provisions of Section 139 of the Companies
Act, 2013, the Companies (Audit and Auditors) Rules, 2014,
and other applicable provisions, the Company can appoint
or reappoint an audit firm as statutory auditors for not more
than two (2) terms of five (5) consecutive years.
In order to ensure the independence of the Auditors and
to have better control and system in place, the Board of
Directors has decided to change the Auditors every five
years on completion of first term by bringing the new
58
He does not hold directorship and membership in any other
Company.
None
5
All terms and conditions of appointment as per applicable
polices of the Company. As a Director he is liable to retire
by rotation.
Last drawn remuneration: 1,50,000 per month
Proposed remuneration: Nil
Auditor/Auditors Firm. Accordingly, the Board of Directors
on recommendation of Audit Committee at their meetings
held on August 13, 2022, recommended to appoint M/s S.R.
Dinodia & Co. LLP, Chartered Accountants, New Delhi-110
001, in place of M/s B.R. Gupta & Co., Chartered Accountants,
whose first term of five consecutive years is expiring on the
conclusion of forthcoming 33rd AGM. The recommendation
is based on various parameters, including but not limited
to independence, competence, technical capability, overall
audit approach, sector expertise and understanding of the
business.
M/s S.R. Dinodia & Co. LLP, Chartered Accountants, New
Delhi-110001 (Firm’s Registration No. 001478N/N500005)
are eligible and have given their consent for their appointment
as Statutory Auditors of the Company and have issued a
certificate confirming that their appointment, if made, will be
within the limits prescribed under the provisions of section
139 read with section 141 of the Companies Act, 2013 (‘the
Act’) and the rules made thereunder. M/s S.R. Dinodia & Co.
LLP, Chartered Accountants, has confirmed that they hold
a valid certificate issued by the Peer Review Board of ICAI.
The Board of Directors has approved remuneration of ` 40
Lakh plus applicable taxes and out of pocket expenses for
the financial year ended March 31, 2023, subject to their
appointment by the Members. The remuneration to be paid
to the Statutory Auditors for the remaining period during
their first term would be decided in line with the existing
remuneration and shall be commensurate with the services
to be rendered by them during the said tenure. The Board
of Directors, in consultation with the Audit Committee, may
alter and vary the terms and conditions of appointment,
including remuneration, in such manner and to such extent
as may be mutually agreed with the Statutory Auditors.
In addition to the statutory audit, the Company may also
obtain certifications from Statutory Auditors under various
statutory regulations and other permissible non-audit
PEARL GLOBAL INDUSTRIES LIMITED NOTICE (Contd.)
services as required from time to time, for which their remuneration shall be approved by the Audit Committee, in accordance
with the provisions of Sections 142 and 144 of the Act.
None of the Directors, Key Managerial Personnel and their relatives are interested, financially or otherwise in this resolution. Your
directors recommend passing of this resolution at Item No.4 as Ordinary Resolution.
Place: Gurugram
Date: August 13, 2022
By order of the Board of Directors
for Pearl Global Industries Limited
(Pallab Banerjee)
Managing Director
DIN 07193749
59
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
DIRECTORS’ REPORT
To the Members,
Your Directors are pleased to present the 33rd Annual Report and Audited Financial Statements for the financial year ended
March 31, 2022, together with the Auditors’ Report thereon.
WORKING RESULTS OF THE COMPANY
Particulars
Income from operations
Other Income
Profit before Tax
Provision for Tax
Profit After Tax
Other comprehensive income
Total comprehensive income
Earnings per share
STATE OF THE AFFAIRS OF THE COMPANY
During the year, your Company’s consolidated income from
operations was ` 2,71,352.90 Lakhs as against `1,49,092.65
Lakhs in the previous year and Net Profit ` 7,010.88 Lakhs
as against Net Profit `1,748.32 Lakhs in the previous year.
The income from operations for the year under review for
the Company on Standalone basis was ` 93,377.06 Lakhs
as compared to ` 77,140.04 Lakhs in the previous year
and Net Profit ` 2,715.78 Lakhs as compared to Net Profit
` 77.40 Lakhs in the previous year.
Pearl Global Industries Limited (PGIL) is one of the India’s
listed garment exporters, manufacturing from
largest
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.
Pearl Global Industries Limited, is a worldwide clothing
manufacturing corporation that provides end-to-end supply
chain solutions to global brands with its integrated production
capabilities centered on Design and Development, Global
Manufacturing, Marketing and Distribution, and Sourcing and
Supply Chain. The Company develops apparels for all genders
and age groups across locations and style preferences. The
Company has 21 state-of-the-art manufacturing plants
across four countries including India (Gurgaon, Chennai and
Bengaluru), Indonesia, Bangladesh, Vietnam and has design
centres India, Indonesia, Bangladesh, Vietnam, U.S.A, Spain,
Hong Kong and U.K.
60
(` in Lakhs)
Standalone
Consolidated
2021-22
2020-21
2021-22
2020-21
93,377.06
77,140.04
2,71,352.90
1,49,092.65
3,204.83
3,610.59
894.81
2,715.78
260.26
2,976.04
12.54
2,408.39
(919.52)
(996.92)
77.40
706.70
784.10
0.36
3,345.94
2,350.49
8,581.82
1,135.56
1,570.94
(612.76)
7,010.88
1,748.32
1,405.26
(86.91)
8,416.14
1,661.41
31.46
7.97
Our product portfolio includes outer wear, active wear,
children’s wear, denim (for both men and women. We are
a well-diversified Company with a de-risked manufacturing
base having multinational presence. Our business
is
primarily focused on export services, with USA contributing
the highest amongst all countries Marquee Clientele
includes Kohls, Macy’s, Tommy Hilfiger, Gap, Old Navy,
NEXT, Nordstrom among others.MANGO, TALBOTS,
TARGET, Kmart, MARKS & SPENCER, LANE BRYANT, LOFT,
ANN TAYOR, We have a total capacity to manufacture
80+ Million garments per annum
including own and
outsourced facilities.
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.
TRANSFER TO GENERAL RESERVES
The Board of Directors do not propose to transfer any
amount to Reserve.
DIVIDEND
The Board of Directors have in its meeting held on May 25,
2022, declared interim dividend of ` 5/- per equity share
of face value of `10/- each, total outgo amounting to
` 10,83,19,685/- for the financial year 2021-22. The record
date to determine eligibility of members was June 8, 2022
and payment of said dividend have been made to the
members within the prescribed time after deduction of tax
in terms with the provisions of Income Tax Act.
PEARL GLOBAL INDUSTRIES LIMITED
DIRECTORS’ REPORT (Contd.)
DIVIDEND DISTRIBUTION POLICY
DIRECTORS’ IDENTIFICATION NUMBER (DIN)
The Company has in place 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 may be accessed on
the Company’s website at https://www.pearlglobal.com/
investor-relations/corporate-governance/
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Change in Directors during 2021-22
During the year Mr. Uma Shankar Kaushik, Whole-Time
Director has resigned from the Board of the Company with
effect from January 10, 2022, due to personal reasons. Mr.
Pulkit Seth and Mrs. Shifalli Seth, resigned from the office
of Managing Director and Whole-Time Director, respectively,
with effect from close of business hours on March 31, 2022,
due to shifting in USA. Mr. Pulkit Seth and Mrs. Shifalli
Seth is continuing as Non-Executive and Non-Independent
Directors.
The Board of Directors have in its meeting held on February
14, 2022, on the recommendation of Nomination and
Remuneration Committee appointed Mr. Deepak Kumar
(DIN 09497467) as Whole-Time Director and Mr. Pallab
Banerjee, Joint Managing Director as Managing Director of
the Company with effect from February 14, 2022 and April 1,
2022, respectively.
The following are the Directors Identification Number (DIN)
of your Directors:
Name
Mr. Deepak
Seth
Mr. Pulkit Seth
Mrs. Shifalli
Seth
Mr. Pallab
Banerjee
Mr. Shailesh
Kumar
Mr. Deepak
Kumar
-
-
-
-
-
-
DIN
Name
00003021 Mr. Chittranjan
Dua
00003044 Mr. Abhishek
Goyal
01388430 Mr. Rajendra
Kumar Aneja
07193749 Mr. Anil Nayar
-
-
-
-
DIN
00036080
01928855
00731956
01390190
08897225 Mrs. Madhulika
-
08712718
Bhupatkar
09497467 Ms. Neha
Khanna
-
03477800
Change in Key Managerial Personnel
Mr. Mayank Jain who was appointed by the Board of
Directors in its meeting held on June 21, 2021 as Company
Secretary and Compliance officer of the Company, resigned
from the office of the Company Secretary and Compliance
officer on November 8, 2021 due to personal reasons.
Mr. Ravi Arora who was appointed by the Board of Directors
in its meeting held on February 14, 2022 as Company
Secretary and Compliance officer of the Company, resigned
from the office of the Company Secretary and Compliance
officer on June 28, 2022 due to personal reasons.
The Company has also obtained shareholders’ approval for
appointment of Mr. Deepak Kumar and Mr. Pallab Banerjee
through Postal Ballot conducted during the period from
March 2, 2022 to March 31, 2022. The result of Postal Ballot
was declared on March 31, 2022.
The Board of Directors have in its meeting held on August
13, 2022, designated Mr. Sanjay Gandhi, Group CFO as Key
Managerial Personnel. Mr. Sanjay Gandhi, Group CFO has
been managing/overseeing finance functions of the Pearl
Group (i.e. Company including its overseas subsidiaries).
The Company has received necessary declaration from each
Independent Director of the Company that the Independent
Directors meet with the criteria of their Independence as
laid down in Section 149(6) of the Companies Act, 2013 and
Regulation 25(8) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
In accordance with the provisions of the Companies Act,
2013 and the Articles of Association of your Company,
Mrs. Shifalli Seth and Mr. Shailesh Kumar, Directors, would
retire by rotation at the ensuing Annual General Meeting and
being eligible, offer themselves for re-appointment.
The Board of Directors of your Company met five times on
May 25, 2021, June 21, 2021, August 14, 2021, November
13, 2021, and February 14, 2022 during the financial year
2021-22.
BOARD EVALUATION
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.
61
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS DIRECTORS’ REPORT (Contd.)
the Nomination and Remuneration
The Board and
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.
NOMINATION AND REMUNERATION POLICY
The Nomination and Remuneration Policy of the Company
is annexed herewith as Annexure-I with this report and also
available on the website of the Company at https://www.
pearlglobal.com/investor-relations/corporate-governance/
INTERNAL FINANCIAL CONTROLS
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.
AUDIT COMMITTEE
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.
VIGIL MECHANISM
The Company has 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: https://www.pearlglobal.com/investor-relations/
corporate-governance/. During the year, no complaint is
received.
62
CORPORATE SOCIAL RESPONSIBILITY
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 https://www.pearlglobal.com/investor-relations/
corporate-governance/
Your Company has identified an hostel for women vocational
training and education education and health care activities
for the financial year 2021-22. The prescribed CSR amount
for the financial year 2021-22 was ` 23.92. However, the
Company has spent ` 76.30 Lakhs during the financial year
2021-22.
The Annual Report on CSR activities is annexed herewith as
Annexure-II.
SUBSIDIARY COMPANIES
During the year under review, Pearl Global USA Inc., USA has
become a wholly owned subsidiary of the Company and one
subsidiary Pearl Global (Changzhou) Textile Technolgy Co.
Ltd., China, has voluntary liquidated.
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 https://www.
pearlglobal.com/investor-relations/corporate-governance/
STATUTORY AUDITORS
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 September 28,
2017, for a period of five years, with effect from financial
year 2017-18.
The Board of Directors have in its meeting held on August
13, 2022, on the recommendation of Audit Committee,
PEARL GLOBAL INDUSTRIES LIMITED DIRECTORS’ REPORT (Contd.)
approved and recommended appointment of M/s. S.R.
Dinodia & Co. LLP, Chartered Accountants, New Delhi (Regn.
No. 001478N/N500005) as Statutory Auditors in the first
term of five years, effective from financial year 2022-23.
M/s. S.R. Dinodia & Co. LLP is eligible to be appointed as
Statutory Auditors of the Company. Necessary resolution
for their appointment and payment of remuneration is
proposed in the Notice calling 33rd Annual General Meeting
for approval of the shareholders.
Members may refer to Note 46 to the standalone financial
statement which sets out related party disclosures pursuant
to Ind AS-24.
PARTICULARS
INVESTMENTS
OF
LOANS,
GUARANTEES
AND
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.
STATUTORY AUDITORS’ REPORT
FIXED DEPOSITS
The Auditors’ Reports (Consolidated & Standalone) for the
financial year ended March 31, 2022 do not contain any
qualification, reservation or adverse remark. The Auditors’
Reports are enclosed with the financial statements in this
Annual Report.
SECRETARIAL AUDITOR
Mr. Jayant Sood, Practising Company Secretary, proprietor
of M/s Jayant Sood & Associates (Company Secretaries)
was appointed by the Board to conduct Secretarial Audit
for the financial year 2021-22. The Secretarial Audit Report
for the financial year 2020-21 is annexed herewith as
Annexure-III. The Secretarial Audit Report does not contain
any qualification, reservation or adverse remark.
INTERNAL AUDITOR
M/s. S.S. Kothari Mehta & Company, Chartered Accountants,
New Delhi (FRN. 000756N) was appointed by the Board, as
Internal Auditor for the financial year 2021-22.
COST AUDIT
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.
ANNUAL RETURN
Pursuant to the Section 92(3) of the Companies Act, 2013,
read with the Companies (Management and Administration)
Rules, 2014, Annual Return of the Company for the financial
year 2021-22 in the prescribed Form MGT-7 is available on
the website of the Company at https://www.pearlglobal.
com/investor-relations/corporate-governance/
RELATED PARTY TRANSACTIONS
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 Annexure-IV.
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.
RISK MANAGEMENT
to Regulation 21 and other applicable
Pursuant
Regulations of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended from time to
time, the Company has Risk Management Committee with
following members and Risk Management Policy.
Name
Mr. Pallab Banerjee
Mr. Abhishek Goyal
Ms. Neha Khanna
Designation
Chairman
Member
Member
During the financial year Risk Management Committee met
two times on November 13, 2021 and February 14, 2022.
DIRECTORS’ RESPONSIBILITY STATEMENT
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 March 31, 2022, 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 March 31, 2022 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;
63
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS DIRECTORS’ REPORT (Contd.)
d)
e)
f)
the Directors have prepared the annual accounts on a
‘going concern’ basis;
the Directors have laid down internal financial controls
to be followed by the Company and that such internal
financial controls are adequate and are operating
effectively; and
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.
LISTING
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 2021-22
have been paid.
Particulars of employees as required under Rule 5(2) and
(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, as amended from time
to time, is annexed as Annexure- VI to this report.
EMPLOYEE STOCK OPTION PLAN-2022
The Company has structured this Plan for its employees,
whose present and potential contributions are important to
the success of the Company, by offering them an opportunity
to participate in the Company’s future and also acquire a
proprietary interest in the Company by award of Options.
The objectives of this Plan are as under:
a)
Alignment of employee’s gains with Company’s
performance
b) Enhancing shareholder’s value
c) Creation of employee wealth
REGISTRAR AND SHARE TRANSFER AGENT
d) Driving performance of the key employees
Link Intime India Private 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.
e)
f)
Retaining/motivating/attracting the best talent within
the Company
Creating commonality of interest between employees
and shareholders
CORPORATE GOVERNANCE
Report on Corporate Governance along with the certificate
the Practicing Company Secretary, confirming
from
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.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future
outlook of the Company is given separately under the head
“Management Discussion and Analysis”.
BUSINESS RESPONSIBILITY REPORT
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.
PARTICULARS
DISCLOSURES
OF
EMPLOYEES
AND
RELATED
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
Annexure-V to this report.
64
In order to reward and retain the employees and to create
a sense of ownership and participation amongst them, the
Board of Directors has in its meeting held on June 30, 2022,
approved Pearl Global Industries Limited Employee Stock
Option Plan 2022 (“Plan or ESOP 2022”), subject to approval
of the shareholders.
The Company is seeking shareholders’ approval by Postal
Ballot (e-voting), which is being conducted from July 29,
2022 to August 28, 2022 and it’s results will be declared on
August 29, 2022.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO
relating
The particulars
to conservation of energy,
technology absorption, foreign exchange earnings and
outgo, as required under Section 134(3)(m) is annexed as
Annexure-VII to this report.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION
FUND
The Company has transferred unclaimed/unpaid dividend
amounting to `3,49,788/- during the financial year 2021-
22 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 financial year 2013-
PEARL GLOBAL INDUSTRIES LIMITED DIRECTORS’ REPORT (Contd.)
14 which was lying with the Company for a period of seven
years. Further, the Company has transferred 3,950 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.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS
PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS
AND COMPANY’S OPERATIONS IN FUTURE
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.
REPORT
ON
COMPLAINTS COMMITTEE
SEXUAL
HARASSMENT-INTERNAL
Pursuant to the provisions of The Sexual Harassment
of Women at the Workplace (Prevention, Prohibition and
Internal Complaints Committee
Redressal) Act, 2013,
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 2021-22.
SECRETARIAL STANDARDS
The Company has complied with applicable Secretarial
Standards
Institute of the Company
Secretaries of India.
issued by the
ACKNOWLEDGEMENT
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 Pearl Global Industries Limited
(Pallab Banerjee)
Managing Director
DIN 07193749
(Pulkit Seth)
Vice-Chairman
DIN 00003044
Place: Gurugram
Date: August 13, 2022
65
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE-I TO THE DIRECTORS’ REPORT
NOMINATION AND REMUNERATION POLICY
1. OBJECTIVE
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. To guide the Board in relation to appointment and
removal of Directors, Key Managerial Personnel
and Senior Management.
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. To recommend to the Board on Remuneration
the Directors, Key Managerial
payable
Personnel and Senior Management.
to
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. To retain, motivate and promote talent and
to ensure long term sustainability of talented
managerial persons and create competitive
advantage.
1.6. To devise a policy on Board diversity
1.7. To develop a succession plan for the Board and to
regularly review the plan;
2. DEFINITIONS
2.1. Act means the Companies Act, 2013 and Rules
framed thereunder, as amended from time to
time.
2.2. Board means Board of Directors of the Company.
2.3. Directors mean Directors of the Company.
2.4. Key Managerial Personnel means
2.4.1. Chief Executive Officer or the Managing
Director or the Manager;
2.4.2. Whole-time director;
2.4.3. Chief Financial Officer;
2.4.4. Company Secretary; and
2.4.5. such other officer as may be prescribed.
66
2.5. Senior Management means Senior Management
means personnel of the Company who are
members of its core management team excluding
the Board of Directors.
3.
Policy for appointment and removal of Director, KMP
and Senior Management
3.1. Appointment criteria and qualifications:
a)
b)
c)
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
for
extension of appointment beyond seventy
years.
justification
indicating
the
3.2. Term / Tenure
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
one year before the expiry of term.
b)
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
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE-I TO THE DIRECTORS’ REPORT (Contd.)
-
-
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.
3.3. Evaluation
The Committee shall carry out evaluation of
performance of every Director, KMP and Senior
Management Personnel at
interval
(yearly).
regular
3.4. Removal
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. Retirement
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.
4.
Policy relating to the Remuneration for the Whole-
time Director, KMP and Senior Management Personnel
4.1. General:
a)
b)
c)
remuneration
/ compensation
The
/
commission etc. to the Whole-time Director,
KMP and 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.
structure
Increments to the existing remuneration/
be
compensation
recommended by the Committee to the
Board which should be within the slabs
approved by the Shareholders in the case of
Whole-time Director.
may
insurance
is taken by the
Where any
Company on behalf of
its Whole-time
Director, Chief Executive Officer, 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. Remuneration to Whole-time / Executive /
Managing Director, KMP and Senior Management
Personnel:
a) Fixed pay:
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/
67
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE-I TO THE DIRECTORS’ REPORT (Contd.)
the Person authorised by the Board or the
Committee.
5.4 Term of the Committee shall be continued unless
terminated by the Board of Directors.
b) Minimum Remuneration:
6. CHAIRPERSON
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.
c) Provisions for excess remuneration:
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. Remuneration to Non- Executive / Independent
Director:
a) Sitting Fees:
The Non- Executive / Independent Director
may receive remuneration by way of fees for
attending meetings of Board or Committee
thereof. Provided
the amount of
that
such fees shall not exceed ` One Lakh per
meeting of the Board or Committee or such
amount as may be prescribed by the Central
Government from time to time.
b) Stock Options:
An Independent Director shall not be entitled
to any stock option of the Company.
5. MEMBERSHIP
5.1 The Committee shall consist of a minimum 3
non-executive directors, majority of them being
independent.
5.2 Minimum two (2) members shall constitute a
quorum for the Committee meeting.
5.3 Membership of the Committee shall be disclosed
in the Annual Report.
68
6.1 Chairperson of the Committee shall be an
Independent Director.
6.2 Chairperson of the Board may be appointed as
a member of the Committee but shall not be a
Chairman of the Committee.
6.3 In the absence of the Chairperson, the members
of the Committee present at the meeting shall
choose one amongst them to act as Chairperson.
6.4 Chairman of the Nomination and Remuneration
Committee meeting could be present at the Annual
General Meeting or may nominate some other
member to answer the shareholders’ queries.
7. FREQUENCY OF MEETINGS
The meeting of the Committee shall be held at such
regular intervals as may be required.
8. COMMITTEE MEMBERS’ INTERESTS
8.1 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.
8.2 The Committee may invite such executives, as
it considers appropriate, to be present at the
meetings of the Committee.
9. SECRETARY
The Company Secretary of the Company shall act as
Secretary of the Committee.
10. VOTING
10.1 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.
10.2 In the case of equality of votes, the Chairman of
the meeting will have a casting vote.
11. NOMINATION DUTIES
The duties of the Committee in relation to nomination
matters include:
11.1 Ensuring that there is an appropriate induction in
place for new Directors and members of Senior
Management and reviewing its effectiveness;
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE-I TO THE DIRECTORS’ REPORT (Contd.)
11.2 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;
11.3 Identifying and recommending Directors who are
to be put forward for retirement by rotation.
11.4 Determining the appropriate size, diversity and
composition of the Board;
11.5 Setting a formal and transparent procedure for
selecting new Directors for appointment to the
Board;
11.6 Evaluating
the Board
the performance of
members and Senior Management in the context
of the Company’s performance from business
and compliance perspective;
11.7 Delegating any of its powers to one or more of its
members or the Secretary of the Committee; and
11.8 Considering any other matters, as may be
requested by the Board.
12. REMUNERATION DUTIES
The duties of the Committee in relation to remuneration
matters include:
12.1 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.
12.2 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.
12.3 To delegate any of its powers to one or more of its
members or the Secretary of the Committee.
12.4 To consider any other matters as may be
requested by the Board.
12.5 Professional indemnity and liability insurance for
Directors and senior management.
69
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE-II ANNUAL REPORT ON CSR ACTIVITIES
1. Brief out line of CSR Policy of the Company:
Pearl Global Industries Limited recognises 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 organisations.
The Company endeavors to make CSR a key business process for sustainable development.
2. Composition of CSR Committee:
Sl.
No.
1
2
3
Name of Director
Designation/Nature of Directorship Number of meetings
of CSR Committee
held during the year
Number of meetings
of CSR Committee
attended during the
year
Mrs. Madhulika Bhupatkar
Chairperson / Independent Director
Mr. Pulkit Seth
Mr. Anil Nayar
Member / Executive Director
Member / Independent Director
1
1
1
1
1
1
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.
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 (attach the report).
https://www.pearlglobal.com/investor-
relations/corporate-governance/
Not Applicable
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
Financial Year
Sl.
No.
Amount available for set-off from
preceding financial years (in `)
Amount required to be setoff
for the financial year, if any (in `)
Not Applicable
Average net profit of the Company as per section 135(5).
(a)
(b)
Two percent of average net profit of the Company as per section
135(5)
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
` 1,196.16 Lakhs
` 23.92 Lakhs
Nil
Nil
(d)
Total CSR obligation for the financial year (7a+7b-7c).
` 23.92 Lakhs
3
4
5
6
7
70
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE-II ANNUAL REPORT ON CSR ACTIVITIES (Contd.)
8.
(a) CSR amount spent or unspent for the financial year:
Total Amount Spent
for the Financial
Year. (in ` /Lakh)
76.30
Amount Unspent (in `/Lakh)
Total Amount transferred to Unspent
CSR Account as per section 135(6).
Amount transferred to any fund specified under
Schedule VII as per second proviso to section 135(5).
Amount.
Date of transfer.
Name of the
Fund
NIL
Amount.
Date of transfer.
(b) Details of CSR amount spent against ongoing projects for the financial year:
(1)
Sl.
No.
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
Name
of the
Project.
Item from
the
list of
activities
in Schedule
VII
to the Act.
Local
area
(Yes/No).
Location of the
project.
Project
duration.
State
District
Amount
allocated
for the
project
(in `).
Amount
spent in
the
current
financial
Year (in
`).
Mode of
Implementa
tion -
Direct
(Yes/No).
Mode of
Implementation -
Through Implementing
Agency
Name
CSR
Registration
number.
Amount
transferred
to
Unspent
CSR
Account for
the
project as
per
Section
135(6) (in
`).
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
Not Applicable
(1)
Sl.
No.
(2)
Name
of the
Project.
1.
Setting up
homes and
hostels for
women
2.
Vocation
Skills
3.
Education
(3)
Item from
the
list of
activities
in Schedule
VII to the
Act.
Setting up
hostels for
women
Enhancing
vocation
skills
Promoting
Education
(4)
Local
area
(Yes/
No).
(5)
Location of the
project.
State
District
(7)
Mode of
Implementa
tion - Direct
(Yes/No).
(6)
Amount
spent
for the
project
(in `/
Lakh).
Yes
Karnataka Bangalore
57.70
No
Yes Gurugram Gurugram 16.58
No
Yes
Delhi
Delhi
2.02
No
(d)
(e)
(f)
Amount spent in Administrative Overheads
Amount spent on Impact Assessment, if applicable
Total amount spent for the Financial Year (8b+8c+8d+8e)
(8)
Mode of Implementation -
Through Implementing
Agency
CSR
registration
number
CSR00008260
CSR00000938
CSR00002080
Name
Arpan
Educational
Society for
Underprivileged
Children
The Apparel
Training &
Design Centre
Adhyayan
Quality
Education
Foundation
Nil
Nil
76.30
71
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE-II ANNUAL REPORT ON CSR ACTIVITIES (Contd.)
(g)
Excess amount for set off, if any
Sl.
No.
(i)
(ii)
Particulars
Amount (in `/Lakh)
Two percent of average net profit of the Company as per section 135(5)
Total amount spent for the Financial Year
(iii)
Excess amount spent for the financial year [(ii)-(i)]
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous
financial years, if any
(v)
Amount available for set off in succeeding financial years [(iii)-(iv)]
9.
(a) Details of Unspent CSR amount for the preceding three financial years:
23.92
76.30
52.38
NIL
52.38
Sl.
No.
Preceding
Financial
Year.
Amount
transferred to
Unspent CSR
Account under
section 135 (6)
(in `)
Amount spent
in the
reporting
Financial Year
(in `).
Amount transferred to any fund
specified under Schedule VII as per
section 135(6), if any.
Name
of the
Fund
Amount
(in `)
Date of
transfer
Amount remaining
to be spent in
succeeding
financial years
(in `)
NIL
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(1)
Sl.
No.
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Project
ID
Name of
the
Project
Project
duration
Financial
Year in
which the
project was
commenced
Total
amount
allocated
for the
project
(in `)
Amount
spent on the
project in
the reporting
Financial
Year (in
`)
Cumulative
amount spent
at the end of
reporting
Financial
Year (in `)
Status of the
project -
Completed
/Ongoing
Not Applicable
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)
(b)
(c)
(d)
Date of creation or acquisition of the capital asset(s).
Amount of CSR spent for creation or acquisition of capital asset.
Details of the entity or public authority or beneficiary under whose name such capital asset
is registered, their address etc.
Not Applicable
Provide details of the capital asset(s) created or acquired (including complete address and
location of the capital asset).
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 13, 2022
72
(Pallab Banerjee)
Managing Director
(Madhulika Bhupatkar)
Chairman of CSR Committee
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE-III TO THE DIRECTORS’ REPORT
SECRETARIAL AUDIT REPORT
For the financial year ended March 31, 2022
[Pursuant to section 204(1) of the Companies Act, 2013
and rule No. 9 of the Companies (Appointment and
Remuneration Personnel) Rules, 2014]
To,
The Members
Pearl Global Industries Limited
CIN:L74899DL1989PLC036849
C-17/1, Paschimi Marg,Vasant Vihar,
New Delhi-110057
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)
b)
c)
d)
e)
f)
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.
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.
We have not verified the correctness and appropriateness
of the financial statements of the Company.
Wherever required, we have obtained the Management
representation about the compliances of laws, rules
and regulations and happening of events etc.
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.
The Securities and Exchange Board of India (Registrars
to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with
client;
g)
*The Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2021;
h)
i)
*The Securities and Exchange Board of India (Buy-
back of Securities) regulations, 2018; and
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 authorised 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 March 31, 2022 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 March 31, 2022, 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:
i.
ii.
iii.
Secretarial Standards
Company Secretaries of India.
issued by The Institute of
The Listing Agreements entered into by the Company
with BSE and NSE Stock Exchange(s).
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:
73
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE-III TO THE DIRECTORS’ REPORT (Contd.)
•
•
•
•
•
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
noncompliance.
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 constituted various committee(s) are as
under:
1. Audit Committee:
Mr. Anil Nayar
- Chairman
Mr. Rajendra K. Aneja
- Member Director
Mr. Abhishek Goyal
- Member Director
Mrs. Madhulika Bhupatkar - Member Director
2. Nomination and Remuneration Committee:
Mr. Abhishek Goyal
- Chairman
Mr. Rajendra K. Aneja
- Member Director
Mr. Anil Nayar
- Member Director
Mr. Deepak Seth
- Member Director
3. Stakeholders Relationship Committee:
Mr. Anil Nayar
- Chairman
Mr. Pulkit Seth
- Member Director
Mr. Rajendra K. Aneja
- Member Director
4. CSR Committee:
Mrs. Madhulika Bhupatkar - Chairperson
74
Mr. Pulkit Seth
- Member Director
Mr. Anil Nayar
- Member Director
5. Finance Committee
Mr. Pulkit Seth
- Chairman
Mrs. Shifalli Seth
- Member Director
Mr. Abhishek Goyal
- Member Director
6. Risk Management Committee
Mr. Pallab Banerjee
- Chairman
Mr. Abhishek Goyal
- Member Director
Ms. Neha Khanna
- Member Director
7. Compliance Officer:
Mr. Ravi Arora*
*(Appointed as a Company secretary and Compliance
Officer of the Company on February 14, 2022)
•
•
•
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 March 31,
2022 the Company has 19335041 shares in NSDL A/c,
2260292shares in CDSL A/c and balance of 68604are
in physical mode.
The Company’s shares in physical form are processed
by the Registrar and Share Transfer Agent Link Intime
India Private Limited 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
No. of Grievances Attended
No. of Grievances Pending
-
-
-
0
0
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 year in time.
Various Committee meetings and meeting of
Independent Directors:
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE-III TO THE DIRECTORS’ REPORT (Contd.)
Audit Committee:
Date of Meeting
Date of notice
Place of
Meeting/
VC
Total No. of
members on date
of meeting
Leave of
Absence
Granted
Total No.
of members
Present
Chairman of the
Meeting
May 25, 2021
May 10, 2021
June 21, 2021
June 11, 2021
August 14, 2021
August 7, 2021
November 13,2021
November 2,2021
February 14, 2022
February 4, 2022
VC
VC
VC
VC
VC
The Company has also maintained the proper record of
the minutes of the meetings
Stakeholders Relationship Committee: During the
Financial Year 2021-22 the committee met on August
16, 2021, and January 25, 2022. The Company has
also maintained the proper record of the minutes of the
meetings.
Nomination and Remuneration Committee meeting:
The Committee met on June 21, 2021, August 14, 2021
and February 14, 2022 during the Financial Year 2021-
22. The Company has also maintained the proper
record of the minutes of the meetings.
CSR Committee:
The Committee met on June 21, 2021 during the
Financial Year 2021-22. The Company has also
maintained the proper record of the minutes of the
meetings.
Finance Committee:
The Committee met on April 28, 2021, June 21, 2021,
July 12, 2021, August 24, 2021, September13, 2021,
Composition of the Board:
4
4
4
4
4
2
1
NIL
NIL
1
2
3
4
4
3
Mr.Anil Nayar
Mr.Anil Nayar
Mr.Anil Nayar
Mr.Anil Nayar
Mr.Anil Nayar
October 21, 2021, November 22, 2021, November
30, 2021, December 4, 2021, December 15, 2021,
December 21,2021, January 5, 2022,February 15, 2022
and March 15, 2022 during the Financial Year 2021-22.
The Company has also maintained the proper record of
the minutes of the meetings.
Risk Management Committee meeting:
The Committee met on November 13, 2021 and
February 14, 2022 during the Financial Year 2021-22.
The Company has also maintained the proper record
of the minutes of the meetings.
Independent Directors’ meeting:
During the Financial Year 2021-22 the meeting of
Independent Directors was convened and held on
March 30, 2022.
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.
LIST OF DIRECTORS AS ON 31.03.2022
S.No. NAME OF THE DIRECTORS
MR. DEEPAK SETH
MR. PULKIT SETH*
MR. CHITTRANJAN DUA
DESIGNATION
Chairman
Managing Director
Independent Director
MR. RAJENDRA KUMAR ANEJA
Independent Director
MRS. SHIFALLI SETH*
MR. ANIL NAYAR
MR. ABHISHEK GOYAL
MS. NEHA KHANNA
Whole-Time Director
Independent Director
Independent Director
Independent Director
MR. PALLAB BANERJEE#
Joint Managing Director
MR. DEEPAK KUMAR
Whole-Time Director
MRS. MADHULIKA BHUPATKAR
Independent Director
MR. SHAILESH KUMAR
Whole-Time Director
1
2
3
4
5
6
7
8
9
10
11
12
DIN
00003021
00003044
00036080
00731956
01388430
01390190
01928855
03477800
07193749
09497467
08712718
08897225
DIRECTOR SINCE
March 22, 1994
November 1, 2004
September 12, 2006
September 12, 2006
January 19, 2012
January 19, 2012
May 26, 2017
June 21, 2021
October 1, 2021
February 14, 2022
March 18, 2020
October 7, 2020
75
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE-III TO THE DIRECTORS’ REPORT (Contd.)
*Mr. Pulkit Seth and Mrs. Shifalli Seth, resigned from
the position of Managing Director and Whole-Time
Director, respectively, with effect from close of business
hours on March 31, 2022. However, they will continue
on the Board as Non-Executive Directors.
# Mr. Pallab Banerjee appointed as Managing Director
with effect from April 1, 2022.
Details of Board Meeting:
Board has met five times during the financial year on:
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
Date of Meeting
Date of serving
the notice
May 25, 2021
June 21, 2021
August 14, 2021
November 13,2021
February 14, 2022
May 10, 2021
June 11, 2021
August 7, 2021
November 2,2021
February 4, 2022
Meeting
Held
Physically
/VC
VC
VC
VC
VC
VC
Total No. of
Directors on the
Board on date of
meeting
10
11
11
12
12
Leave of
Absence
granted to
Director
6
2
3
1
2
Total No.
of Directors
Present
Chairman of the
Meeting
4
9
8
11
10
Mr. Anil Nayar
Mr. Deepak Seth
Mr. Pulkit Seth
Mr. Deepak Seth
Mr. Deepak Seth
The Company has also maintained the proper record of
the minutes of the meetings.
8.
Register of Renewal and Duplicate Shares
Certificate
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.
Annual General Meeting:
During the Financial Year 2021-22 the Company has
called 32nd Annual General Meeting for the Financial
Year 2020-21 on September 24, 2021, through Video
Conferencing facility. The Company has kept the
e-voting period from September 21, 2021 to September
23, 2021 (both days inclusive).
Maintenance of Statutory Registers:
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
Declaration and Payment of Dividend:
No Dividend declared and distributed during the
financial year ending March 31, 2022.
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 at para (i) to (v) and also
laws listed herein below:
Export
the Company carries on
the business of
As
trade
manufacturing,
of
the
management, the following laws are the specific laws,
specifically applicable to the Company:
readymade Garments. As
and Merchant
informed by
1.
2.
3.
The Air (Prevention and Control of Pollution) Act,
1981.
The Child Labour (Prohibition and Regulation) Act,
1986.
The Contract Labour (Regulation and Abolition)
Act, 1970.
5. Register of Charge
4. The Factories Act, 1948.
6. Register of Contracts or Arrangements
5. The Fatal Accidents Act, 1855.
7. Register of Transfer and Transmission.
6. The Industrial Disputes Act, 1947.
76
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE-III TO THE DIRECTORS’ REPORT (Contd.)
7.
8.
The Industrial Employment (Standing Orders) Act, 1946.
The Industries (Development and Regulation) Act, 1951.
We were examined all the records with physical visit at Corporate office of the Company, Pearl Tower, Plot No.51,
Sector-32, Gurgaon, Haryana - 122016.
Place: Gurugram
Date: May 25, 2022
UDIN: F004482D000381210
Peer Review Certificate No. 1061/2022
For Jayant Sood and Associates
Company Secretaries
(CS Jayant K Sood)
Proprietor
FCS: 4482, CP No. 22410
ANNEXURE-IV TO THE DIRECTORS’ REPORT
FORM NO. AOC-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: NIL
2. Details of material contracts or arrangement or transactions at arm’s length basis:
Sl.
No.
Name of the
related party
Nature of the
relationship
Nature of
Contracts/
arrangement/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient
terms of the
contracts or
arrangements
or
transactions
Value
(` in
Lakh)
Date of
approval
of the
Board, if
any
Amount
paid as
advances,
if any
1
Pearl Global
(HK) Limited
Wholly Owned
Subsidiary
Sale of goods
April 1, 2021
-
to
March 31, 2022
SAP Income
Expenses
incurred by them
on our behalf
Income on
Corporate
Guarantee
Expenses paid
by us on their
behalf
30,208.89 August
14, 2021
NIL
51.35
82.19
108.13
16.64
Place: Gurugram
Date: August 13, 2022
(Pallab Banerjee)
Managing Director
DIN 07193749
For and on behalf of the Board
for Pearl Global Industries Limited
(Pulkit Seth)
Vice-Chairman
DIN 00003044
77
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
ANNEXURE-V TO THE DIRECTORS’ REPORT
[Pursuant to Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
Sl.
No.
I
II
III
IV
V
Particulars
Disclosures
The ratio of the remuneration of each Director to the
median remuneration of the employees for the financial
year
Mr. Pulkit Seth (VC&MD)
Mrs. Shifalli Seth (WTD)
Mr. Pallab Banerjee (JMD)
Mr. Uma Shankar Kaushik (WTD)
Mr. Shailesh Kumar (WTD)
Mr. Deepak Kumar (WTD)
Nil
The percentage
Director, CFO, CS in the financial year
increase
in remuneration of each
56.71x
23.63x
32.36x
7.09x
5.67x
7.15x
The percentage increase in the median remuneration of
employees in the financial year
The median remuneration of the employees in the financial year
was increased by 6.66%.
The number of permanent employees on the rolls of the
Company
There were approx 5966 permanent employees as on March
31, 2022
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 percentiles increase in the salary of employees other
than managerial personnel in the last financial year was 6.66%.
Average percentiles increase in the salary of Managerial
personnel in the last financial year was NIL.
VI
Affirmation that the remuneration
remuneration policy of the Company
is as per the
The remuneration paid to Directors/employees is as per
remuneration policy.
Place: Gurugram
Date: August 13, 2022
(Pallab Banerjee)
Managing Director
DIN 07193749
(Pulkit Seth)
Vice-Chairman
DIN 00003044
For and on behalf of the Board
for Pearl Global Industries Limited
78
PEARL GLOBAL INDUSTRIES LIMITED
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
Sl.
No.
Name of
Employee
Designation
Educational
qualification
Age
Experience
(in years)
Date of
Joining
Remuneration
paid
Previous
employment
Percentage
of equity
share held
1
2
3
4
5
6
7
8
Mr. Sanjay
Gandhi
Ms. Ratna
Singh
Mr. Sundeep
Chatrath
Group CFO
B.Com (Hons), CA
Chief Human
Resource Officer
COO-Knits
Division (India)
B.A.
B.A.
Mr. Shankar
H C
Vice President
Diploma in Textile
Technology
Mr. Pankaj
Bhasin
CEO-Sampling &
Merchandising
CFO-India
B.Com and
Apparel Production
Management
Chartard
Accountant
Mr. Narendra
Kumar
Somani
Mr. Anand
Bhatia
Mr. Pankaj
Agarwal
Sr. Vice-President
(Production)
B.Sc., MBA
Sr. Vice-President MBA
46
47
55
54
49
53
53
48
22
27
34
18.12.2019
59,07,546
19.10.2020
50,29,654
01.06.2017
46,97,274
30
17.02.2016
44,99,500
27
15.07.1995
42,27,137
29
21.04.2021
42,00,065
30
09.08.2011
38,35,498
24
01.04.2021
37,93,332
9
Mr. Hari S
COO
10
Mr. Sandeep
Hooda
Vice President
Post Graduate
In Garment
Manufacturing
Technology , NIFT
B.Tech (Textile
Technology)
49
24
01.10.2019
30,10,645
41
20
14.05.2021
27,74,890
Note: Nature of employment is non contructual
CFO-Solutions,
Sterlite Power
Director-HR,
Flipkart
Head-
Merchandising,
Gupta Exim,
Faridabad
VP-Operation
Shahi Exports
Pvt.Ltd
NIL
CFO-Modelama
Exports Pvt Ltd.
Factory Manager,
Texport Fashion
Ltd
SVP-
Merchandising,
Norp Knit
Industries Ltd-
Bangladesh
GM-Operations,
JMS Garments
Manager -
Strategy &
Operations -
Triburg
Whether
employee
is relative
of any
Director or
Manager
No
No
No
No
No
No
No
No
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
No
NIL
No
79
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS 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.
A. CONSERVATION OF ENERGY
(i) Steps taken for conservation of energy:
-
-
-
-
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 utilisation of work station for energy conservation
(ii)
Steps taken by the Company for utilizing alternate sources of energy:
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.
(iii) The Capital investment on energy conversation equipment:
The Company has invested approx ` 1.07 Crores for installation of solar energy plant.
B. TECHNOLOGY ABSORPTION:
(i) Efforts made towards technology absorption:
Nil
(ii)
Benefits derived like product improvement, cost reduction, product development or import substitution:
Not Applicable
(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year):
Technology Imported
Year of Import
a
b
C Has technology been fully absorbed?
d
If not fully absorbed, areas where this has not taken place, and the reasons.
(iv) The expenditure incurred on Research & Development:
Expenditure on R & D
a)
b)
Capital
Recurring
Total
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
Foreign Exchange Earnings
Particulars
Export of Goods - FOB basis
Interest Income
IT/SAP Income
Total
80
Not Applicable
N.A.
N.A.
N.A.
(` Lakhs)
2021-22
2020-21
NIL
254.90
254.90
NIL
517.85
517.85
(`/Lakhs)
2021-22
2020-21
84,129.91
73,525.71
14.40
97.87
32.21
117.07
84,242.18
73,674.99
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE VII TO THE DIRECTOR’S REPORT (Contd.)
Foreign Exchange Outgo
Particulars
Imports
Foreign Travelling
EDI Expenses
Others
Total
2021-22
2,270.03
37.72
10.97
102.50
2,421.22
(`/Lakhs)
2020-21
601.67
43.67
41.12
102.12
788.58
For and on behalf of the Board
for Pearl Global Industries Limited
Place: Gurugram
Date: August 13, 2022
(Pallab Banerjee)
Managing Director
DIN 07193749
(Pulkit Seth)
Vice-Chairman
DIN 00003044
81
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
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]
Sl.
No.
Name of
Subsidiary
Date of
Acquisition
Reporting
Period
Reporting
Currency
Exchange
rate
Reserves
& surplus
Total
assets
Total
Liabilities
Investments
Turnover
Equity
Share
Capital
Profit/
Loss
before
taxation
Provision
for
taxation
Profit
/Loss
after
taxation
Proposed
dividend
% of
shareholding
(` in Lakh)
Other
comprehensive
(Expenses)
Income
Total
Comprehensive
income for the
Year
1
2
3
4
5
6
7
8
9
10
11
12
13
Pearl Global
Kaushal
Vikas
Limited
SBUYS
E-Commerce
Limited
Norp Knit
Industries
Limited
Pearl Global
Fareast
Limited#
Peal Global
(HK)
Limited#
PGIC
Investment
Limited
Pearl Grass
Creations
Limited
Vin Pearl
Global
Vietnam
Limited#
Pearl Global
Vietnam Co.
Limited
Prudent
Fashions
Limited
DSSP Global
Limited#
PT Pinnacle
Apparels
Pearl Global
USA Inc.
18.06.2014 31-Mar-22
INR
NA
5.00
(5.32)
0.10
0.42
-
-
(0.42)
-
(0.42)
-
100.00
20.09.2019 31-Mar-22
INR
NA
1.00
48.67
184.02
134.35
-
816.24
65.86
16.93
48.93
22.03.2006 31-Mar-22
USD
75.8071 3,651.27 12,494.72 50,802.16 34,656.18
984.63
95,509.45 2,423.89
505.31 1,918.58
-
-
100.00
99.99
-
-
-
(0.42)
48.93
1,918.58
16.03.2009 31-Mar-22
USD
75.8071 3,786.56
3,547.18 11,032.16
3,698.42
2,345.19
15,336.73 (439.91)
- (439.91)
379.04
100.00
(80.15)
(520.06)
22.12.2009 31-Mar-22
USD
75.8071 6,868.12
9,531.68 68,643.34 52,243.53
12,419.52 2,08,567.69 2,805.26
165.36 2,639.90
189.52
100.00
218.29
2,858.19
16.08.2016 31-Mar-22
USD
75.8071
0.00
(706.85)
3,952.25
4,659.10
-
- (218.05)
- (218.05)
11.07.2016 31-Mar-22
USD
75.8071
303.23 (1,017.73)
4,740.05
5,454.55
-
20,823.71
553.49
-
553.49
11.07.2016 31-Mar-22
USD
75.8071
9.10
(270.61)
3,130.47
3,391.98
3,126.51
-
(27.77)
-
(27.77)
01.05.2017 31-Mar-22
VND
0.0033 2,381.24
(984.34) 18,621.06 17,224.15
-
35,753.10
880.46
-
880.46
02.03.2017 31-Mar-22
BDT
0.8610 1,689.94 (1,152.76)
9,579.87
9,042.69
-
4,336.31 (551.60)
255.05 (806.66)
08.11.2012 31-Mar-22
USD
75.8071 1,273.65
4,510.00 20,206.66 14,423.01
928.62
34,943.72
(60.49)
(99.63)
(160.12)
30.03.2006 31-Mar-22
USD
75.8071 1,329.63
4,698.65
9,206.23
3,177.95
-
14,992.51
396.36
99.63
296.73
29.07.2021 31-Mar-22
USD
75.8071
0.76
2.88
259.96
256.32
-
358.00
2.88
-
2.88
-
-
-
-
-
-
-
-
100.00
80.00
100.00
100.00
99.95
-
-
-
-
-
(218.05)
553.49
(27.77)
880.46
(806.66)
100.00
(90.10)
(250.22)
69.92
(90.10)
90.10
100.00
-
2.88
# Figurers are on consolidated basis.
For and on behalf of Board
For Pearl Global Industries Limited
(Pallab Banerjee)
Managing Director
DIN 07193749
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Ravi Arora)
Company Secretary
M.No.: ACS-21187
Place: Gurugram
Date: May 25, 2022
82
PEARL GLOBAL INDUSTRIES LIMITED CORPORATE GOVERNANCE
1. COMPANY’S PHILOSOPHY
Effective corporate governance practice constitutes the strong foundation on which successful commercial enterprises
are built to last. The Company’s philosophy on corporate governance overseas business strategies and ensures fiscal
accountability, ethical corporate behavior and fairness to all stakeholders comprising regulators, employees, customers,
vendors, investors, and the society at large.
Strong leadership and effective corporate governance practice have been the Company’s hallmark inherited from the Pearl
culture and ethos.
The Company has a strong legacy of fair, transparent, and ethical governance practices. The Company’s corporate
governance philosophy has been further strengthened through the Pearl Business Excellence Model.
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. BOARD OF DIRECTORS
As on March 31, 2022, the Company’s Board of Directors consists of 12 (Twelve) members. The Chairman of the Board
is non-executive Promoter Director. The Board comprises of three executive Directors and Nine non-executive Directors,
of whom six 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.
Composition and Category of the Board as on 31.03.2022 and their attendance in the Board and last Annual General
Meetings are as hereunder:
S.
No.
1
2
3
4
5
6
7
8
9
Name of Director
Category
Attendance
Board
Meetings
Annual
General
Meeting
Mr. Deepak Seth
Mr. Pulkit Seth$
Mrs. Shifalli Seth$
Mr. Pallab Banerjee#
Promoter, Non-
Executive
Promoter, Non-
Executive
Promoter, Non-
Executive
Joint Managing
Director
Mr. Shailesh Kumar
Whole-Time Director
Mr. Deepak Kumar
Whole-Time Director
Mr. Chittranjan Dua
Mr. Rajendra Kumar
Aneja
Mr. Anil Nayar
Non-executive
Independent
Non-executive
Independent
Non-executive
Independent
3
4
1
2
5
1
3
4
5
Yes
Yes
No
NA
Yes
NA
Yes
Yes
Yes
Number of other Directorships,
committee memberships/chairmanships
Other
Directorships*
Member-
ships**
Chairman-
ships**
3
2
2
2
-
-
6
-
-
2
-
-
-
-
-
5
-
-
-
-
-
-
-
-
2
-
-
83
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
Name of Director
Category
Attendance
S.
No.
10 Mr. Abhishek Goyal
11 Mrs. Madhulika
Bhupatkar
12 Ms. Neha Khanna
Non-executive
Independent
Non-executive
Independent
Non-executive
Independent
Board
Meetings
Annual
General
Meeting
3
4
4
Yes
Yes
Yes
Number of other Directorships,
committee memberships/chairmanships
Other
Directorships*
Member-
ships**
Chairman-
ships**
1
-
-
-
-
-
-
-
-
$ Mr. Pulkit Seth and Mrs. Shifalli Seth, resigned from the office of Managing Director and Whole-Time Director, respectively,
with effect from close of business hours on March 31, 2022.
# Mr. Pallab Banerjee appointed as Managing Director with effect from April 01, 2022.
* 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.
Name of other listed entities where Directors of the Company is Directors and category of Directorship:
Name of Director
DIN
Mr. Deepak Seth
00003021
Name of listed entities in which the
concerned Director is a Director
PDS Limited (Formerly Multinational
Fashions Limited)
Category of Directorship
Promoter, Non-Executive Director
Mr. Pulkit Seth
Mrs. Shifalli Seth
Mr. Pallab Banerjee
Mr. Shailesh Kumar
Mr. Deepak Kumar
Mr. Chittranjan Dua
00003044 NIL
01388430 NIL
07193749 NIL
08897225 NIL
09497467 NIL
00036080
TVS Motor Company Limited
Gillette India Limited
Procter & Gable Hygiene and Health
Care Limited
Mr. Rajendra Kumar Aneja
Mr. Anil Nayar
Mr. Abhishek Goyal
Mrs. Madhulika Bhupatkar
Ms. Neha Khanna
00731956 NIL
01390190 NIL
01928855 NIL
08712718 NIL
03477800 NIL
NIL
NIL
NIL
NIL
NIL
Non-Executive Independent Director
Non-Executive Independent Director
Chairman of the Board and Non-
Executive Independent Director
NIL
NIL
NIL
NIL
NIL
Mr. Deepak Seth, Chairman, Mr. Pulkit Seth, Vice Chairman and Mrs. Shifalli Seth, Directors are relatives. Mrs. Shifalli Seth
is spouse 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 2021-22, five (5) Board Meetings were held on May 25, 2021, June 26, 2021, August 14, 2021,
November 13, 2021 and February 14, 2022.
Mr. Deepak Seth, Chairman, holds 28,62,145 equity shares (13.21%), Mr. Pulkit Seth, Vice-Chairman, holds 69,47,621 equity
shares (32.07%) and Mrs. Shifalli Seth, Non-Executive Non-Independent Director holds 2,01,478 equity shares (0.93%) of
the Company. No other Non-Executive Director holds equity share in the Company.
84
PEARL GLOBAL INDUSTRIES LIMITED
CORPORATE GOVERNANCE (Contd.)
Details of familiarisation programmes imparted to Independent Directors are disclosed at Company’s website at https://
www.pearlglobal.com/investor-relations/corporate-governance/
Skills/Expertise/Competence of the Board of Directors
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:
Skill area
Description
Number of Directors
having particular skills
Product design,
Manufacturing,
Sales and Marketing
Finance
Global Business
Leadership and Strategic
Planning
•
•
•
•
•
•
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.
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 •
Knowledge of technological trends in apparel industry.
Legal and Governance
Human Resource and
Administration
•
•
•
to protect shareholders’
Ability
appropriate governance practices.
interest and observe
Monitor risk and compliance management system including
legal framework.
Ability to understand Labour Laws and other related applicable
Laws including administration functions of the Company.
The Board members possess the skills identified; their area of core expertise is given below:
Name of Director
Mr. Deepak Seth
Area of Expertise
Product design, Manufacturing, Sales and Marketing
6
7
9
10
4
10
6
Global Business
Leadership and Strategic Planning
Finance
Legal and Governance
Human Resource and Administration
Technology and Innovation
Mr. Pulkit Seth
Product design, Manufacturing, Sales and Marketing
Global Business
Leadership and Strategic Planning
Finance
Human Resource and Administration
Legal and Governance
Technology and Innovation
85
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
Name of Director
Mrs. Shifalli Seth
Mr. Pallab Banerjee
Mr. Shailesh Kumar
Mr. Deepak Kumar
Mr. Anil Nayar
Mr. Chittranjan Dua
Mr. Rajendra Kumar Aneja
Mr. Abhishek Goyal
Mrs. Madhulika Bhupatkar
Ms. Neha Khanna
Area of Expertise
Product design, Manufacturing, Sales and Marketing
Global Business
Leadership and Strategic Planning
Technology and Innovation
Product design, Manufacturing, Sales and Marketing
Global Business
Leadership and Strategic Planning
Finance
Legal and Governance
Human Resource and Administration
Technology and Innovation
Human Resource and Administration
Legal and Governance
Human Resource and Administration
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
Human Resource and Administration
Leadership and Strategic Planning
Finance
Leadership and Strategic Planning
Legal and Governance
Global Business
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.
Information supplied to the Board
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;
86
PEARL GLOBAL INDUSTRIES LIMITED
CORPORATE GOVERNANCE (Contd.)
Minutes of meetings of Audit Committee and other committees of the board;
Information on recruitment and remuneration of senior officers just below the board level including appointment or
removal of Chief Financial Officer and Company Secretary;
Materially important show cause, demand, prosecution and penalty notices;
Fatal or serious accidents or dangerous occurrences;
Any materially significant effluent or pollution problems;
Any materially relevant default in financial obligations to and by the Company, or substantial non-payment for goods
sold by the Company;
Any issue, which involves possible public or product liability claims of a substantial nature;
Details of any joint venture or collaboration agreement;
Transactions that involve substantial payment towards goodwill, brand equity or intellectual property;
Significant labour problems and their proposed solutions;
Any significant development in the human resources and industrial relations fronts;
Sale of material nature, of investments, subsidiaries, assets, which is not in the normal course of business;
Quarterly details of foreign exchange exposure and the steps taken by management to limit the risks of adverse
exchange rate movement, and
Non-compliance of any regulatory, statutory nature or listing requirements and shareholder services such as non-
payment of dividend and/or delay in share transfer.
3. AUDIT COMMITTEE
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.
87
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
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 five 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 May 25,
2021, June 21, 2021, August 14, 2021, November 13, 2021 and February 14, 2022 during the financial year 2021-22.
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.
During the year 2021-22, the members of the Audit Committee and their attendance are as under:
Composition
Mr. Anil Nayar - Chairman
Mrs. Madhulika Bhupatkar - Member Director
Mr. Abhishek Goyal - Member Director
Mr. Rajendra Kumar Aneja - Member Director
4. NOMINATION AND REMUNERATION COMMITTEE
Audit Committee
No. of Meetings attended
5
4
3
4
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 Frame work;
All the members of the Nomination and Remuneration Committee are Non-Executive Directors.
Three meetings of the Nomination and Remuneration Committee were held on June 21, 2021, August 14, 2021, and
February 14, 2022, during the financial year 2021-22. Details of meeting of the members of Nomination and Remuneration
Committee and their attendance are as under:
Nomination and Remuneration Committee
Composition
Mr. Abhishek Goyal - Chairman
Mr. Deepak Seth - Member Director
Mr. Anil Nayar - Member Director
Mr. Rajendra Kumar Aneja - Member Director
No. of Meetings attended
1
1
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
88
PEARL GLOBAL INDUSTRIES LIMITED
CORPORATE GOVERNANCE (Contd.)
•
•
•
•
Knowledge on specific matters like finance, legal, marketing, internal controls, risk management, and business operations.
Pro-active and positive approach with regard to Board and Senior Management particularly the arrangement for
management of risk and the steps needed to meet challenges from the competition.
Openness to ideas, perspectives and opinions and ability to challenge old practices and throwing up new ideas for
discussion.
Capacity to effectively examine financial and other information on operations of the Company and the ability to make
positive contribution thereon.
5. STAKEHOLDERS RELATIONSHIP COMMITTEE
As on March 31, 2022, the Stakeholders Relationship Committee comprises of:
Mr. Anil Nayar
-
Chairman
Mr. Pulkit Seth
- Member
Mr. Rajendra K Aneja
- 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 August 16, 2021, and January 25, 2022 during the
financial year 2021-22.
Status of Shareholders Complaints during the year 2021-22
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. CORPORATE SOCIAL REPOSIBILITY COMMITTEE
As on March 31, 2022, 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 June 21, 2021, during the financial year 2021-22.
7. FINANCE COMMITTEE
As on March 31, 2022, the Finance Committee comprises of:
Mr. Pulkit Seth
-
Chairman
Mrs. Shifalli Seth
- Member
Mr. Abhishek Goyal
- Member
The Company Secretary of the Company acts as Secretary of the Committee.
The meetings of Finance Committee were held on April 28, 2021, May 6, 2021, May 22, 2021, June 21, 2021, July 12, 2021,
August 24, 2021, September 13, 2021, October 21, 2021, November 30, 2021, December 4, 2021, December 15, 2021,
December 22, 2021, January 5, 2022, February 15, 2022 and March 15, 2022 during the financial year 2021-22.
89
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
8. REMUNERATION OF DIRECTORS
Details of remuneration paid to all the Directors for the year 2021-22 are as under:
Name of the
Director(s)
Mr.
Deepak
Seth
Mr.
Pulkit
Seth
Designation
Chairman Managing
Mrs.
Shifalli
Seth
Whole
Time
Director
37.64
--
--
--
Mr. Pallab
Banerjee
Joint
Managing
Director
162.46
--
--
--
Mr.Uma
Shankar
Kaushik
Whole
Time
Director
10.33
5.16
3.09
0.16
Mr.
Shailesh
Kumar
Whole
Time
Director
9.60
4.80
3.60
--
Mr.
Deepak
Kumar
Whole
Time
Director
2.70
1.35
1.05
--
--
--
--
--
0.11
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Director
90.14
--
--
--
--
--
--
--
0.11
--
--
--
--
--
--
3 years
--
3 years
--
3 years
--
3 years
--
3 years
--
3 years
--
Nil
Nil
--
Nil
--
--
Mr. C R
Dua
Mr. Anil
Nayar
Mr.
Rajendra
K Aneja
Director Director Director
(Amount in `/Lakhs)
Mr.
Abhishek
Goyal
Director
Mrs.
Madhulika
Bhupatkar
Director
Ms.
Neha
Khanna
Director
--
--
--
--
--
--
--
--
--
--
--
--
--
Nil
Nil
--
--
--
--
--
--
--
--
--
--
--
--
--
Nil
Nil
--
--
--
--
--
--
--
--
--
--
--
--
--
Nil
Nil
--
--
--
--
--
--
--
--
--
--
--
--
--
Nil
Nil
--
--
--
--
--
--
--
--
--
--
--
--
--
Nil
Nil
--
--
--
--
--
--
--
--
--
--
--
--
--
Nil
Nil
--
--
--
--
--
--
--
--
--
--
--
--
--
Nil
Nil
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
Sitting Fees
Total
0.60
0.60
-
90.25
-
37.75
--
162.46
-
18.74
-
18.00
--
5.10
0.80
0.80
0.45
0.45
0.70
0.70
0.45
0.45
0.70
0.70
0.70
0.70
A sitting fee of ` 25,000/- 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. GENERAL BODY MEETINGS
Location and time where last 3 Annual General Meetings were held:
Year
2018-19
AGM Location
30th Sri Sathya Sai International Centre, Pragati Vihar (Near Pragati Vihar
Date
24.09.2019
Time
10.30 A.M.
Hostel) Lodhi Road, New Delhi-110 003
2019-20
2020-21
31st Through Video Conferencing (VC) or Other Audio-Visual Means (OAVM)
32nd Through Video Conferencing (VC) or Other Audio-Visual Means (OAVM)
26.11.2020
24.09.2021
11.30 A.M.
5.00 P.M.
90
PEARL GLOBAL INDUSTRIES LIMITED
CORPORATE GOVERNANCE (Contd.)
Detail of Special Resolutions Passed During last three Annual General Meetings:
Sl.
No.
1
2
3
Particulars of Special Resolution
Date
Appointment of Ms. Neha Khanna as an Independent Director of the Company. September 24, 2021
Re-Appoint Mr. Abhishek Goyal as an Independent Director of the Company.
Re-appoint Mrs. Shifalli Seth as Whole-Time Director of the Company.
To appoint of Mr. Pallab Banerjee as Whole Time Director to be Designated as
Joint Managing Director of the Company.
To-approve Related Party Transactions with Mr. Pulkit Seth, Managing Director
of the Company for holding office or place of profit in the branch office of the
Company.
NIL
Re-appointment of Mr. Pulkit Seth as Managing Director of the 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.
November 26, 2020
September 24, 2019
Financial
Year
2020-21
2019-20
2018-19
Details of Resolutions Passed Through Postal Ballot:
During the year 2021-22, under Section 110 of the Companies Act, 2013 read with Companies (Management and
Administration) Rules, 2014, the Company passed the following Resolutions by postal ballot:
S.
No.
1.
2.
3.
4.
Particular of Resolutions
Total valid
votes cast
Votes cast in favour
of Resolution
%
No.
99.91
Votes cast against
the Resolution
%
No.
0.09
13,993
1,47,40,064 1,47,26,071
Appointment of Mr. Deepak Kumar (DIN 09497467)
as Director of the Company.
Appointment of Mr. Deepak Kumar (DIN 09497467)
as Whole Time Director of the Company.
Appointment of Mr. Pallab Benerjee (DIN 07193749)
as Managing Director.
Approval for Related Party Transactions.
1,47,40,064 1,47,26,071
99.91
13,993
0.09
1,47,40,064 1,47,39,863
99.99
3,28,858
3,28,657
99.94
201
201
0.01
0.06
Mr. Jayant Sood (FCS 4482), Practising Company Secretary was appointed as the scrutiniser for carrying out the Postal
ballot process in a fair and transparent manner.
Procedure followed for postal ballot:
The Company dispatched on 28th February, 2022 Postal Ballot Notice dated 14th February, 2022 containing draft
resolutions together with the explanatory statement as required under Section 102 of the Companies Act, 2013, setting out
material facts and the reasons for the Ordinary and Special Resolutions through email to all the Members of the Company
whose names appear on the Register of Members/list of Beneficial Owners as received from National Securities Depository
Limited / Central Depository Services (India) Limited, Depositories, on the cut-off date i.e. 25th February, 2022 and who
have registered their email addresses in respect of electronic holdings with the Depository and in respect of physical
holdings with the Company’s Registrar and Share Transfer Agent, Link Intime India Private Limited (RTA) for facilitating
e-voting to enable the shareholders to cast their votes electronically instead of physical mode due to COVID-19 situation
and in terms of the relaxations issued by the MCA vide various circulars. Further, postal ballot notice was also made
available on the website of RTA and was submitted to the stock exchanges and placed on the website of the Company at
www.pearlglobal.com.
The Company also published the details of Postal Ballot Notice in the Business Standard newspapers (Hindi & English),
pursuant to the requirements as mandated by the Companies Act, 2013 and Rules framed thereunder. The newspaper
publications were also placed at the Company’s website www.pearlglobal.com.
91
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
E-voting was conducted from March 2, 2022 (9.00 A.M. IST) to March 31, 2022 (5.00 P.M. IST). The voting rights were
reckoned on the paid-up value of the shares registered in the names of the Members / Beneficial Owner as on cut-off date.
The last date of receipt of approval of shareholders through e-voting on March 31, 2022 has been taken as the date of
passing of the Resolutions with requisite majority. The results of the Postal Ballot were declared on March 31, 2022 and
displayed at the registered office of the Company. The results of the postal ballot were submitted to the Stock Exchanges
(BSE & NSE) and placed on the website of the Company at www.pearlglobal.com and also communicated to the Registrar
and Share Transfer Agent.
10. MEANS OF COMMUNICATION
(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 www.pearlglobal.com, besides the website of BSE Limited at www.bseindia.com and National
Stock Exchange of India Limited at www.nseindia.com.
(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. GENERAL SHAREHOLDER INFORMATION
(i) Annual General Meeting
33rd Annual General Meeting will be held on September 26, 2022.
(ii) Financial year
:
The financial year covers the period 1st April to 31st March.
Financial Calendar, 2022-23 (Tentative)
First Quarter Results
Second Quarter & Half Yearly Results
Third Quarter Results
Fourth Quarter & Annual Results
:
:
:
:
Second week of August, 2022
Second week of November, 2022
Second week of February, 2023
Last week of May, 2023
(iii) Dividend payment date: Not Applicable.
(iv) Listing on Stock Exchanges and their Stock Code
Name of the Stock Exchanges, wherein shares of the Company are currently listed and their Script Code:
Stock Exchange
BSE LIMITED
1ST FLOOR, NEW TRADING RING
ROTUNDA BUILDING, P. J. TOWERS
DALAL STREET, FORT,
MUMBAI – 400 001Mumbai
NATIONAL STOCK EXCHANGE OF INDIA LTD.
“EXCHANGE PLAZA”, PLOT NO. C- 1, G- BLOCK,
BANDRA - KURLA COMPLEX,
BANDRA ( E ),
MUMBAI - 400 051
Script Code
532808
PGIL
The Annual Listing Fee for the financial year 2022-2023 has been paid to the Stock Exchanges within stipulated time.
The ISIN No. of the equity shares of your Company is INE940H01014.
92
PEARL GLOBAL INDUSTRIES LIMITED
CORPORATE GOVERNANCE (Contd.)
(v) Market Price Data: High, Low during each month in financial year 2021-22:
MONTH(S)
April 2021
May 2021
June 2021
July 2021
August 2021
September 2021
October 2021
November 2021
December 2021
January 2022
February 2022
March 2022
BOMBAY STOCK EXCHANGE
Company Code: 532808
Low
High
165.00
196.10
162.00
237.50
204.20
244.35
207.75
389.60
295.80
474.35
294.05
341.20
284.75
329.30
287.40
436.00
311.85
396.05
342.45
574.85
339.75
598.00
374.05
439.95
High
197.05
237.45
244.80
388.80
474.70
342.80
329.00
435.00
399.90
573.95
575.00
443.00
NATIONAL STOCK EXCHANGE
Company Code: PGIL
(vi) Share price performance in comparison to BSE Sensex and NSE Nifty:
MONTH(S)
(As on end of last trading
day of the month)
April 2021
May 2021
June 2021
July 2021
August 2021
September 2021
October 2021
November 2021
December 2021
January 2022
February 2022
March 2022
SHARE PRICES COMPARISION
BSE
NSE
PGIL
179.00
210.15
211.95
367.40
334.90
312.05
295.95
366.25
349.20
523.30
392.05
426.90
Sensex
48,782.36
51,937.44
52,482.71
52,586.84
57,552.39
59,126.36
59,306.93
57,064.87
58,253.82
58,014.17
56,247.28
58,568.51
PGIL
177.90
211.15
212.15
366.55
336.30
314.05
296.90
368.80
349.75
524.25
394.55
425.15
(vii) Registrar and Share Transfer Agent
Link Intime India Pvt. Limited
Nobel Heights, 1st Floor
Plot No.NH-2, C-1 Block
LSC Near Savitri Market
Janakpuri, New Delhi - 110 058.
: 011 - 41410592 - 94
Tel. No.
: 011 – 41410591,
Fax No.
: delhi@linkintime.co.in
E-mail
(viii) Share Transfer System
Low
167.00
172.05
205.15
210.00
292.05
292.35
284.00
291.25
312.05
342.35
339.95
371.10
Nifty
14,631.10
15,582.80
15,721.50
15,763.05
17,132.20
17,618.15
17,671.65
16,983.20
17,354.05
17,339.85
16,793.90
17,464.75
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.
93
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
(ix) Distribution Schedule
(a) Distribution of Equity Shareholding of the Company as on March 31, 2022
Number of Equity Shares held
Shareholders
Equity shares held
1 - 500
501 - 1000
1001 - 2000
2001 - 3000
3001 - 4000
4001 - 5000
5001 – 10000
10001 and above
Total
Numbers
13457
% to total
95.9091
247
130
44
20
24
50
59
1.7604
0.9265
0.3136
0.1425
0.1710
0.3564
0.4205
14031
100.0000
Numbers
% to total
873420
192252
193651
113758
71446
116973
382551
4.0317
0.8874
0.8939
0.5251
0.3298
0.5399
1.7658
19719886
21663937
91.0263
100.0000
(b) Categories of Shareholders as on March 31, 2022
PROMOTERS (A)
Indian
NRI
TOTAL (A)
PUBLIC (B)
Mutual Funds / Foreign Portfolio
Investors
Alternate Investment Funds
Financial Institutions/Banks
NBFC registered with RBI
NRI’s
Bodies Corporate
Clearing Members
Individual
Hindu Undivided Family
Trusts
Unclaimed Shares
IEPF
TOTAL (B)
TOTAL [(A) + (B)]
No. of
Folio’s
% to total
Folios
No. of
Shares Held*
% to total
Shares
2
3
5
6
1
1
1
145
97
28
12,675
515
1
1
1
13,472
13,477
0.02
0.02
0.04
0.04
0.01
0.01
0.01
1.08
0.72
0.21
94.05
3.82
0.01
0.01
0.01
99.96
100.00
2,01,508
1,42,23,401
1,44,24,909
12,25,691
54,173
2,56,666
1,000
1,71,031
2,25,625
5,602
49,78,624
2,44,268
100
420
75,828
72,39,028
2,16,63,937
0.93
65.65
66.58
5.66
0.25
1.18
0.00
0.79
1.04
0.03
22.98
1.13
0.00
0.00
0.35
33.42
100.00
* Equity Share of the face value of `10/- each.
(x) Dematerialisation of Shares and liquidity
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 March 31, 2022, 2,15,95,333 equity shares of the Company forming
99.68% of the Share Capital of the Company stand dematerialized.
(xi) Outstanding GDRs/ADRs/Warrants or any Convertible instruments, conversion date and likely impact on
equity:
The Company has not issued any GDRs/ADRs/Warrants etc. till date.
94
PEARL GLOBAL INDUSTRIES LIMITED
CORPORATE GOVERNANCE (Contd.)
(xii) Commodity price risk or foreign exchange risk and hedging activities
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.
(xiii) Plant locations:
The Company have following plants at various locations in India, Bangladesh, Indonesia and Vietnam, as follows:
i)
446, Udyog Vihar, Phase-V, Gurgaon - 122 016 (Haryana)
ii) Plot No.73,Udyog Vihar,Phase-I,Gurgaon-122016
iii) Plot No.274,Udyog Vihar,Phase-II,Gurgaon-122016
iv) 16-17, Udyog Vihar, Phase VI, Khandsa, Gurgaon - 122 004 (Haryana)
v)
751, Pace City II, Sector 37, Khandsa, Gurgaon - 122 004 (Haryana)
vi) Plot at Khasra No 15//19 & 22, Village Begumpur Khatola, Gurugram, Haryana – 122001
vii) NH-8, Narsinghpur Village, District, Gurgaon (Haryana)
viii) 2/31/,Thirukahukundram Road, Melavalam Village, Madhuranthagam, Taluk,
Kancheepuram District-603303
ix) Plot No. 19A, NTTF Road, Peenya Industrial Area, Bengaluru-560058
x) Norp Knit Industries Ltd, North Khailkur, P.O. National University, Gazipur-1704 Bangladesh.
xi) Norp Knit Industries Ltd- 93, Islampur, Kodda, Nandun, Gazipur-1700, Bangladesh
xii) Prudent Fashions Ltd. Kaichabari Road, Bypail, Ashulia, Savar, Bangladesh
xiii) PT Pinnacle Apparels, JL Coaster No. 8, Blok A-15-15, a TEPZ, Kawasan Berikat Lamicitra Tanjung Emas
Export Processing Zone,Semarang-50174, Indonesia
xiv) 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
xv) Pearl Global Vietnam Company Limited, Dinh Tri Commune, Bae Giang City, Bae Giang Province,Vietnam
(xiv) Registered Office of the Company:
C-17/1, Paschimi Marg, Vasant Vihar, New Delhi-110057
Corporate Office & Address for Correspondence:
Pearl Tower, Plot No.51, Sector-32
Gurugram - 122 001, Haryana (India)
In case of any Complaint, Investors can contact Compliance Officer:
The Company Secretary
Pearl Global Industries Limited
Pearl Tower, Plot No.51, Sector-32
Gurugram - 122 001, Haryana (India)
Tel. No.: 91 - 124 – 4651714
95
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
Mr. Ravi Arora who was appointed as Company Secretary and Compliance Officer of the Company by the Board
of Directors in its meeting held on 14th February, 2022, resigned from the office of the Company Secretary and
Compliance officer of the Company on 28th June, 2022.
(xv) Credit Ratings
The Company has obtained credit ratings from ICRA Limited. Details of Credit ratings of the Company, are given
below:
Rating Agency
ICRA Limited
12. OTHER DISCLOSURES
Credit Rating
Long term rating : [ICRA] BBB+ (Stable)
Short term rating : [ICRA] A2
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 https://www.pearlglobal.com/
investor-relations/corporate-governance/
Policy on dealing with related party transactions is disclosed at Company’s website at https://www.pearlglobal.com/
investor-relations/corporate-governance/
During the financial year 2021-22, 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 2021-22.
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:
Particulars
Audit Fee
Other Services
Reimbursement of Expenses
Total
96
(`/Lakhs)
For the financial
year ended
March 31, 2022
For the financial
year ended
March 31, 2021
20.50
10.00
1.85
32.35
17.92
11.65
0.75
30.32
PEARL GLOBAL INDUSTRIES LIMITED
CORPORATE GOVERNANCE (Contd.)
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 2021-22.
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.
14. NON-MANDATORY REQUIREMENTS AS SPECIFIED IN PART E OF SCHEDULE II OF THE SEBI LISTING REGULATIONS
Discretionary requirements are as follows:
A. The Board
Maintenance of Non-Executive Chairman’s Office
Presently, the Company is maintaining office of the Non-Executive Chairman.
B. Shareholders Rights
The Company’s Financial Results, Shareholding Pattern and official news releases are displayed on the Company’s
website https://www.pearlglobal.com/investor-relations/financials/.
C. Modified opinion(s) in audit report – there is no modified opinion in the audit report.
D. Separate Posts of chairperson and chief executive officer
Presently, the Company has separate post of Non-executive Chairman and Managing Director.
E. Reporting of internal auditor-The internal auditor reports to Audit Committee as and when required.
Compliance with the Code of Conduct
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 https://www.pearlglobal.com/investor-relations/corporate-governance/.
The declaration from the Managing Director regarding compliance with the code by all the Directors and Senior Management
forms part of the Report.
Compliance certificate on Corporate Governance
A certificate from practicing company secretary regarding compliance of conditions of Corporate Governance is annexed
with this Annual Report.
CEO/CFO CERTIFICATION
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 2022. Certificate is annexed
with this Annual Report.
Disclosure with respect to demat suspense account / unclaimed suspense account:
Shares remains unclaimed and lying in the IPO escrow A/c of the company for the financial year 2021-22, 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.
97
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
CORPORATE GOVERNANCE (Contd.)
Electronic Clearing Service (ECS)
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.
Depository Services
For guidance on depository services, shareholders may write to the Company or to the respective Depositories:
National Securities Depository Ltd.
Central Depository Services (India) Ltd.
Trade World, 4th Floor, Kamala Mills Compound
Phiroze Jeejeebhoy Towers
Senapati Bapat Marg, Lower Parel, Mumbai-400013
28th Floor, Dalal Street, Mumbai-400023
Telephone : 022-24994200
Facsimile : 022-24972993
E-Mail : info@nsdl.co.in
Website : www.nsdl.co.in
Telephone : 022-22723333/3224
Facsimile : 022-22723199
E-Mail : investors@cdslindia.com
Website : www.cdslindia.com
98
PEARL GLOBAL INDUSTRIES LIMITED
BUSINESS RESPONSIBILITY REPORT (2021-22)
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
Corporate Identity Number (CIN) of the Company
L74899DL1989PLC036849
Pearl Global Industries Limited
C-17/1, Paschimi Marg, Vasant Vihar,
New Delhi-110057
www.pearlglobal.com
investor.pgil@pearlglobal.com
April 1, 2021 to March 31, 2022
Name of the Company
Registered address
4. Website
E-mail id
Financial Year reported
1.
2.
3.
5.
6.
7.
8.
9.
Sector(s) that the Company is engaged in (industrial activity
code-wise)
NIC Code: 141
Manufacturing of wearing apparels
List three key products/services that the Company
manufactures/provides (as in balance sheet)
Total number of locations where business activity is
undertaken by the Company
(a) Number of International Locations
(b) Number of National Locations
Manufacturing of wearing apparels
21
13
8
10. Markets served by the Company -Local/State/National/
International
International
SECTION B: FINANCIAL DETAILS OF THE COMPANY
1.
2.
3.
4.
5.
Paid up Capital (`)
Total Turnover (`)
Total profit after taxes (`)
` 21,66,39,370
` 93,377.06 Lakhs
` 2,715.78 Lakhs
Total Spending on Corporate Social Responsibility (CSR) as
percentage of profit after tax (%)
6.37% (`76.30 Lakhs) of average net profit of the
Company for last three financial years calculated as per
section 198 of the Companies Act, 2013.
List of activities in which expenditure in 4 above has been
incurred:-
(a) Hostel for women
(b) Vocational Skills
(c) Educations
SECTION C: OTHER DETAILS
1.
Does the Company have any Subsidiary Company/
Companies?
The Company has following subsidiaries:
i.
ii.
Pearl Apparel Fashions Limited (under liquidation)
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. Pearl Global USA Inc.
viii. Vin Pearl Global Vietnam Limited
ix. Pearl Global Vietnam Company Limited
x.
Pearl Grass Creations Limited
xi. A&B Investment Limited
xii. Prudent Fashions Limited
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ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS BUSINESS RESPONSIBILITY REPORT (2021-22) (Contd.)
xiii. DSSP Global Limited
xiv. PT Pinnacle Apparels
xv. Pearl Global F.Z.E
xvi. PGIC Investment Limited
2.
3.
Do the Subsidiary Company/Companies participate in
the BR Initiatives of the parent Company? If yes, then
indicate the number of such subsidiary Company(s):
Do any other entity/entities (e.g. suppliers, distributors
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%]
No
No
SECTION D: BR INFORMATION
1. Details of Director/Directors responsible for BR
(a) Details of the Director/Director responsible for implementation of the BR policy/policies
1. DIN Number
2. Name
3. Designation
:
:
:
07193749
Mr. Pallab Banerjee
Joint Managing Director
(b) Details of the BR head
No. Particulars
DIN Number (if applicable)
Name
Designation
1
2
3
4
5
Details
07193749
Mr. Pallab Banerjee
Joint Managing Director
Telephone number
0124-4651000
e-mail id
Investor.pgil@pearlglobal.com
2. Principle-wise (as per NVGs) BR Policy/policies
(a) Details of compliance (Reply in Y/N)
No. Questions
P 1
P 2
P 3
P 4
P 5
P 6
P 7
P 8
P 9
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?
6.
Indicate the link for the policy to be viewed online?
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
https://www.pearlglobal.com/investor-relations/corporate-
governance/
100
PEARL GLOBAL INDUSTRIES LIMITED
BUSINESS RESPONSIBILITY REPORT (2021-22) (Contd.)
No. Questions
P 1
P 2
P 3
P 4
P 5
P 6
P 7
P 8
P 9
7. Has the policy been formally communicated to all
relevant internal and external stakeholders?
The Policy is available on the website of the Company and is
expected to be adhered by all the 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?
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)
No. Questions
P1
P 2
P 3
P 4
P 5
P 6
P 7
P 8
P 9
1
2
3
4
5
6
The Company has not understood the Principles
The Company is not at a stage where it finds itself in a
position to formulate and implement the policies on
specified principles
The Company does not have financial or manpower
resources available for the task
It is planned to be done within next 6 months
It is planned to be done within the next 1 year
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
(b) Does the Company publish a BR or a Sustainability
Report? What is the hyperlink for viewing this report?
How frequently it is published?
SECTION E: PRINCIPLE-WISE PERFORMANCE
Not Applicable
The Board may review the BR initiatives and other related
policies on regular intervals as and when required.
The Business Responsibility Report would be published
annually on the website of Company at www.pearlglobal.com
Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
1. Does the policy relating to ethics, bribery and corruption
No
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.
The policy is expected to be adhered by the other stakeholders.
During the financial year 2021-22, the Company has not
received any complaints.
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ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
BUSINESS RESPONSIBILITY REPORT (2021-22) (Contd.)
Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their
life cycle
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?
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 utilisation
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,
improvement
projects.
technological upgradation and
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
sustainable sourcing.
is
in process of setting procedures for
The Company prefers local & small producers for various
inputs.
The Product and waste are scraped (being non recyclable)
Principle 3: Businesses should promote the wellbeing of all employees
1.
2.
3.
4.
5.
Please indicate the Total number of employees.
Please indicate the Total number of employees hired on
temporary / contractual / casual basis.
indicate the Number of permanent women
Please
employees.
Please indicate the Number of permanent employees
with disabilities
Do you have an employee association that is recognised
by management
5966
3334
3471
NA
NA
6. What percentage of your permanent employees
is
NA
members of this recognised employee association?
102
PEARL GLOBAL INDUSTRIES LIMITED BUSINESS RESPONSIBILITY REPORT (2021-22) (Contd.)
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
No of complaints filed during
the financial year
No of complaints
pending as on end of the
financial year
1.
2.
3.
Child labour / forced labour / involuntary labour
Sexual harassment
Discriminatory employment
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%
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who
are disadvantaged, vulnerable and marginalised
1. Has the Company mapped its internal and external
Yes
stakeholders? Yes/No
2. Out of the above, has the Company identified the
Yes
disadvantaged, vulnerable & marginalised stakeholders.
3. Are there any special initiatives taken by the Company
to engage with the disadvantaged, vulnerable and
marginalised stakeholders. If so, provide details thereof,
in about 50 words or so.
We adhere to preference on payment and orders for such
stakeholders.
Principle 5: Businesses should respect and promote human rights
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.
Principle 6: Business should respect, protect, and make efforts to restore the environment
1. Does the policy related to Principle 6 cover only the
Company or extends to the Group/Joint Ventures/
Suppliers / Contractors / NGOs / others
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.
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.
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.
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ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS BUSINESS RESPONSIBILITY REPORT (2021-22) (Contd.)
3.
4.
5.
6.
Does the Company
environmental risks? Y/N
identify and assess potential
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?
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.
Are the Emissions/Waste generated by the Company
within the permissible limits given by CPCB/SPCB for the
financial year being reported?
Identification and assessment of environmental risk are under
process.
Project related to clean development mechanism are under
planning stage.
The Company has
manufacturing plant located at Chennai.
installed solar energy plant at
its
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
Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
1.
2.
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 Organisations
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
Principle 8: Businesses should support inclusive growth and equitable development
1.
2.
Does the Company have specified programmes /
initiatives/projects in pursuit of the policy related to
Principle 8? If yes details thereof.
Principle 8 states that businesses should support inclusive
growth and equitable development. The Company endeavours
to achieve
its various skill
development programmes to ensure that benefits accrued
by the organisation are available even to the marginalised
sections of the society.
inclusive growth
through
Are the programmes/projects undertaken through in-
house team / own foundation /external NGO/government
structures/any other organisation?
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 ` and the details of the
projects undertaken.
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.
The Company has spent ` 76.30 Lakh towards its CSR
obligations during the financial year 2021-22.
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.
104
PEARL GLOBAL INDUSTRIES LIMITED BUSINESS RESPONSIBILITY REPORT (2021-22) (Contd.)
Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner
1. What percentage of customer complaints / consumer
cases are pending as on the end of financial year.
2.
3.
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)
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.
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.
4.
Did your Company carry out any consumer survey/
consumer satisfaction trends?
Buyers are reputed Retail Chains and we do get their feedback
on consumer fashion trends and feedback.
105
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS CORPORATE GOVERNANCE CERTIFICATE
To
The Members of Pearl Global Industries Limited
1.
We, Jayant Sood and Associates, Company Secretaries have examined the compliance of conditions of Corporate
Governance by the Company PEARL GLOBAL INDUSTRIES LIMITED (“the Company”), for the year ended on March
31,2022, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para’s C and D of Schedule V of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (“SEBI Listing Regulations”).
MANAGEMENT’S RESPONSIBILITY
2.
3.
4.
5.
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.
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. Itis neither an audit nor an expression of opinion on the
financial statements of the Company.
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.
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.
OPINION
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 para’s C and D of
Schedule V of the Listing Regulations during the year ended March 31, 2022.
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 Jayant Sood and Associates
Company Secretaries
(Jayant Sood)
FCS: 4482
COP-22410
UDIN: F004482D000790586
Place: Gurugram.
Date: August 13, 2022
106
PEARL GLOBAL INDUSTRIES LIMITED 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 March 31, 2022.
Place: Gurugram
Date: May 25, 2022
For Pearl Global Industries Limited
Pallab Banerjee
Managing Director
DIN 07193749
CERTIFICATION BY MANAGING DIRECTOR AND CHIEF
FINANCIAL OFFICER OF PEARL GLOBAL INDUSTRIES LIMITED
We, Pallab Banerjee, Managing Director and Narendra Kumar Somani, Chief Financial Officer of Pearl Global Industries Limited
to the best of our knowledge and belief certify that:
A.
We have reviewed that financial statements and the Cash Flow Statement for the year ended March 31, 2022 and to best
of our knowledge and belief:
1)
2)
these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading.
these statements 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.
C.
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.
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)
3)
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
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: May 25, 2022
(Pallab Banerjee)
Managing Director
(Narendra Kumar Somani)
Chief Financial Officer
107
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS
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
Pearl Global Industries Limited
CIN: L74899DL1989PLC036849
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 Pearl Global
Industries Limited, having CIN L74899DL1989PLC036849 and having registered office at C-17/1, Paschimi Marg, 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 March 31, 2022 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.
LIST OF DIRECTORS AS ON August 13, 2022
S.
NO.
1
2
3
4
5
6
7
8
9
NAME OF THE DIRECTORS
DESIGNATION
DIN
DIRECTOR SINCE
Mr. Deepak Seth
Mr. Pulkit Seth
Chairman
00003021
March 22, 1994
Non-Executive Director*
00003044
November 1, 2004
Mr. Chittranjan Dua
Independent Director
00036080
September 12, 2006
Mr. Rajendra kumar Aneja
Independent Director
00731956
September 12, 2006
Mrs. Shifalli Seth
Mr. Anil Nayar
Non-Executive Director*
01388430
January 19, 2012
Independent Director
01390190
January 19, 2012
Mr. Abhishek Goyal
Independent Director
01928855
May 26,2017
Mrs. Madhulika Bhupatkar
Independent Director
08712718
March 18, 2020
Ms. Neha Khanna
Independent Director
03477800
June 21, 2021
10
11
12
Mr. Shailesh Kumar
Mr. Pallab Banerjee
Mr. Deepak Kumar
Whole-Time Director
08897225
October 7, 2020
Managing Director**
07193749
January 10, 2021
Whole-Time Director
09497467
February 14, 2022
108
PEARL GLOBAL INDUSTRIES LIMITED CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS (CONTD.)
*
Mr. Pulkit Seth and Mrs. Shifalli Seth, resigned from the office of Managing Director and Whole-Time Director, respectively,
with effect from close of business hours on March 31, 2022.
** Mr. Pallab Banerjee appointed as Managing Director with effect from April 1, 2022
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Company.
For Jayant Sood & Associates
Company Secretaries
(CS Jayantk Sood)
Proprietor
FCS: 4482, CP No. 22410
Place: Gurugram
Date: August 13, 2022.
UDIN: F004482D000790553
109
ANNUAL REPORT 2021-22CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTS Financial
Statements
110
PEARL GLOBAL INDUSTRIES LIMITED INDEPENDENT AUDITOR’S REPORT
To,
The Members of
Pearl Global Industries Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial
statements of Pearl Global Industries Limited (“the
Company”), which comprises the balance sheet as at March
31, 2022, 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, 2022, the Profit (financial
income),
performance
changes in equity and its cash flows for the year ended on
that date.
including other comprehensive
Basis for Opinion
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
Key Audit Matters
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 year.
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:
Key Audit Matter
Assessment of impairment of investments in subsidiaries
As disclosed in note 8 of standalone financial statements,
the Company has
in subsidiaries of
investments
11,761.04 lakh (March 31, 2021: 11,578.00 lakh). Such
less allowance for
investments are carried at cost
impairment.
The Company analyses regularly for
indicators of
impairment of these investments by reference to the
requirements under relevant Ind AS.
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.
How our audit addressed the Key Audit Matter
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.
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.
111
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
How our audit addressed the Key Audit Matter
-
-
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 these 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.
Adequacy and completeness of disclosures of Related
Party Transactions
Refer Note 46 to the accompanying standalone financial
statements as at March 31, 2022 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:
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.
-
-
the significance of transactions with related parties
during the year ended March 31, 2022; and
related party transactions are subject to compliance
requirement under the Companies Act, 2013 and
SEBI (listing and Obligation Disclosure Requirement)
2015.
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.
Information Other
Statements and Auditor’s Report Thereon
than
the Standalone Financial
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.
112
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.
If, based on the work we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact.
PEARL GLOBAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR’S REPORT (Contd.)
Responsibility of Management and Those Charged with
Governance for the Standalone Financial Statements
•
total comprehensive
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,
income,
changes in equity and cash flows of the Company in
accordance with the Ind AS and other accounting principles
generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets
of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board
of Directors is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using
the going concern basis of accounting unless Board of
Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing
the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements
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.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
113
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
INDEPENDENT AUDITOR’S REPORT (Contd.)
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of
the Act, we give in “Annexure 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:
I. 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.
II.
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.
III. 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.
IV.
In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified
under Section 133 of the Act.
V. On the basis of the written representations
received from the directors as on March 31, 2022
taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2022
from being appointed as a director in terms of
Section 164 (2) of the Act.
114
VI. With respect to the adequacy of the internal financial
controls with
to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in “Annexure B”.
reference
VII. 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:
a) 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.
b) 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.
c) There has been no delay in transferring amounts,
Investor
required to be transferred, to the
Education and Protection Fund by the Company.
d)
(i). The Management has represented that,
to the best of its knowledge and belief, as
disclosed in the Note 53 to the accounts, no
funds (which are material either individually
or in the aggregate) have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other
sources or kind of funds) by the Company
to or in any other person or entity, including
foreign entity (“Intermediaries”), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
(ii). The Management has represented, that,
to the best of its knowledge and belief, as
disclosed in the Note 53 to the accounts, no
funds (which are material either individually
or in the aggregate) have been received by
the Company from any person or entity,
including foreign entity (“Funding Parties”),
PEARL GLOBAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR’S REPORT (Contd.)
with the understanding, whether recorded in
writing or otherwise, that the Company shall,
directly or indirectly, lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Funding
Party (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf
of the Ultimate Beneficiaries; and
(iii). Based on such audit procedures that has
been considered reasonable and appropriate
in the circumstances, nothing has come to
our notice that has caused us to believe that
the representations under sub-clause (i) and
(ii) of Rule 11(e), as provided under (i) & (ii)
above, contain any material misstatement.
e) As stated in note 48 to the standalone financial
statements, the Board of Directors of the Company
have declared an interim dividend for the financial
year 2021-22 subsequent to the balance sheet
date. The same has not been paid as on the
date of audit report. The dividend declared is in
accordance with section 123 of the Act to the
extent it applies to declaration of dividend.
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.
For B.R. Gupta & Co.
Chartered Accountants,
Firm Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number 073696
UDIN : 22073696AMMSGU7037
Place of Signature : New Delhi
Date: May 25, 2022
115
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT
Annexure ‘A’ to the Independent Auditors’ Report of even
date on the standalone financial statements of Pearl
Global Industries Limited
The Annexure referred to in paragraph 1 under ‘Report
on Other Legal and Regulatory Requirements’ section
of Independent Auditors’ Report to the members of the
Company on the standalone financial statements for the
year ended March 31, 2022, we report that:
i)
In respect of Property, Plant and Equipment:
a)
(A) The Company has maintained proper records
showing full particulars, including quantitative
details and situation of Property, Plant and
Equipment. (B) The Company has maintained
proper
full particulars of
Intangible assets.
records showing
b) The Company has a program of verification
to cover all the items of Property, Plant and
Equipment 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 Property, Plant
and Equipment 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 (other than
immovable properties where the Company is
the lessee and the lease agreements are duly
executed in favour of the lessee) 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.
d) According to the records examined by us, the
Company has not revalued its Property, Plant
and Equipment (including Right of Use assets)
or intangible assets or both during the year.
Accordingly, the provisions of clause 3(i) (d) of the
Order are not applicable.
e) According to the information and explanations
given to us, no proceedings have been initiated or
are pending against the Company for holding any
benami property under the Prohibition of Benami
Property Transactions Act, 1988 (as amended in
2016) and rules made thereunder. Accordingly,
the provisions of clause 3(i) (e) of the Order are
not applicable.
ii)
In respect of its inventory:
a) On the basis of information and explanation
provided,
the Management has conducted
physical verification of inventory at reasonable
intervals during the year, except for goods-in-
transit. In our opinion, the coverage and procedure
of such verification is appropriate having regard to
the size of the Company and nature of its business.
According to the information and explanations
given to us, no discrepancies of 10% or more in
the aggregate for each class of inventory between
physical inventory and book records were noticed
on such physical verification.
b) According to the records examined by us, during
the year, working capital limits in excess of five
crore rupees, in aggregate has been sanctioned
to the Company by the banks on the basis of
security of current assets. According to the
information and explanations given to us, the
quarterly statements filed by the Company with
such banks are materially in agreement with the
books of account of the Company.
iii) According to the information and explanation given
and based on the audit procedures performed by us,
during the year, the Company has made investment
and provided corporate guarantee to group companies
and unsecured loans to companies and other parties
(i.e its employees). Further. The Company has not
given any security to companies, firms, Limited Liability
Partnerships (LLPs) or other parties.
a)
the aggregate amount during the year and balance outstanding at the balance sheet date with respect to such loans
and guarantees to its subsidiaries, and other parties are given below:
Particulars
Aggregate amount granted/ provided
during the year
- Subsidiaries
- Others- Loan to companies
- Others- Loan to employees
116
Guarantees
Loan
USD 40.00 lakh equivalent to 3,032.40 lakh
-
-
300.00 lakh
61.47 lakh
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT (Contd.)
Particulars
Balance outstanding as at balance
sheet date in respect of above cases
- Subsidiaries
- Others- Loan to companies
- Others- Loan to employees
Guarantees
USD 270.00 lakh equivalent to 20,468.70 lakh
-
Loan
-
Nil
41.36 lakh
b) The terms and conditions of the grant of loans,
guarantees and investment made, are, prima
facie, not prejudicial to the Company’s interest.
c) The schedule of repayment of principal and
payment of interest in respect of loan has been
stipulated and the repayment/receipts of the
principal amount and the interest are generally
been regular as per stipulation.
d) There is no overdue amount in respect of loan
granted.
e) No loans or advances in the nature of loan granted
which has fallen due during the year or has been
renewed or extended or fresh loans granted to
settle the over dues of existing loans given to
the same parties. Accordingly, the provisions of
clause 3(iii) (e) of the Order are not applicable.
f)
The Company has not granted any loans or
advances in the nature of loans either repayable
on demand or without specifying any terms or
period of repayment. Accordingly, the provisions
of clause 3(iii) (f) of the Order are not applicable.
In our opinion and according to the information
and explanations given to us, the Company has not
advanced any loans 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 and securities is not applicable to the
Company. Further, the Company has complied with
Section 186 of the Act in respect of investments made
and corporate guarantee provided by the Company.
iv)
-
v)
In our opinion and according to the information
and explanations given to us, the Company has
not accepted any deposits or amounts which are
deemed to be deposits during the year and had no
unclaimed deposits at the beginning of the year within
the meaning of Sections 73 to 76 of the Act and the
Companies (Acceptance of Deposits) Rules, 2014 (as
amended). Accordingly, the provisions of clause 3(v) of
the Order are not applicable.
vi) On the basis of available information and explanation
provided to us, the Central Government has not
prescribed maintenance of cost records under sub-
section (1) of section 148 of the Companies Act,
2013 read with Companies (Cost Records and Audit)
Amendment Rules, 2016 dated July 14, 2016 to
the current operations carried out by the Company.
Accordingly, the provisions of paragraph 3(vi) of the
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, 2022 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 in respect of statutory dues refer to in sub clause vii(a) above which have not been deposited by the
Company on account of dispute, except for the following:
S.
No.
a)
b)
Name of the Statute Nature of Dues
Amount
in lakh
Period to which
amount relates
Forum where dispute is pending
Income Tax Act, 1961 Income Tax Demand
Income Tax Act, 1961 Income Tax Demand
15.57 A.Y 2015-16
0.04 A.Y 2015-16
c)
d)
e)
Income Tax Act, 1961 Income Tax Demand
Income Tax Act, 1961 Income Tax Demand
Income Tax Act, 1961 Income Tax Demand
3.49 A.Y 2016-17
3.83 A.Y 2017-18
33.30 A.Y 2017-18
f)
Income Tax Act, 1961 Income Tax Demand
5.70 A.Y 2018-19
Appeal Pending before ITAT
Rectification u/s 154- Assessing
Officer
Appeal Pending before ITAT
Appeal pending before CIT(A).
Rectification U/s 154 -Assessing
Officer
Appeal pending before CIT(A).
117
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT (Contd.)
viii) According to the information and explanations given
to us and the records examined by us, there are no
unrecorded transactions that have been surrendered
or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of
1961). Accordingly, the provisions of clause 3(viii) of
the Order are not applicable.
ix)
In respect of loans or other borrowings taken by
information and
the Company, according to the
explanations given to us and audit procedures
performed by us:
a) The Company has not defaulted in repayment of
loans or other borrowings or in the payment of
interest thereon to any lender during the year.
b) The Company has not been declared willful
defaulter by any bank or financial institution or
government or any government authority.
c) The Company has utilized the money obtained by
way of term loans during the year for the purposes
for which they were obtained.
d) No funds raised on short-term basis have been
used for long-term purposes by the Company.
e) The Company has not taken any funds from
any entity or person on account of or to meet
the obligations of its subsidiaries. Further, the
Company does not have any associate and Joint
venture. Accordingly, the provisions of clause 3(ix)
(e) of the Order are not applicable.
f)
The Company has not raised loans during the year
on the pledge of securities held in its subsidiaries.
Further the Company does not have any associate
and joint venture. Accordingly, the provisions of
clause 3(ix) (f) of the Order are not applicable.
x)
In respect of moneys raised by the Company through
issue of shares & debt instruments:
a) During the year, the Company did not raise moneys
by way of initial public offer or further public offer
(including debt instruments). Accordingly, the
provisions of clause 3(x) (a) of the Order are not
applicable.
b) During the year, the Company has not made any
preferential allotment or private placement of
shares or convertible debentures (fully, partially or
optionally convertible). Accordingly, provisions of
clause 3 (x) (b) of the Order are not applicable.
xi) a) As per the information and explanations given
to us on our enquiries on this behalf, no fraud of
118
material significance on or by the Company has
been noticed or reported during the year.
b)
In our opinion and according to the information
and explanations given to us, no report under
sub-section (12) of section 143 of the Companies
Act has been filed during the year and upto the
date of this report in Form ADT-4 as prescribed
under rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government.
c) As represented to us by the Management, there
were no whistle blower complaints received by
the Company during the year.
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) In respect to internal audit system in the Company:
xv)
xvi)
a)
In our opinion and based on our examination,
internal audit system
the Company has an
commensurate with the size and nature of its
business.
b) We have considered, the internal audit reports
for the year under audit, issued to the Company
during the year and till date, in determining the
nature, timing and extent of our audit procedures.
In our opinion and according to information and
explanation given to us, the Company has not entered
into any non-cash transactions with directors or
persons connected with him, covered under section
192 of the Act. Accordingly, provisions of clause 3 (xv)
of the Order are not applicable.
a) The Company is not required to be registered
under Section 45-IA of the Reserve Bank of India
Act, 1934 (2 of 1934). Accordingly, provisions of
clause 3 (xvi) (a), (b) and (c) of the Order are not
applicable.
b) According to the information and explanations
given to us, there are no core
investment
company (CIC) within the Group (as defined in
PEARL GLOBAL INDUSTRIES LIMITED
ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT (Contd.)
the Core Investment Companies (Reserve Bank)
Directions, 2016). Accordingly, provisions of
clause 3 (xvi) (d) of the Order are not applicable.
xx)
In respect of Corporate Social Responsibility, according
to the information and explanations given to us and
audit procedures performed by us:
xvii) According to the information and explanations given to
us, the Company has neither incurred any cash losses
in the current financial year nor in the immediately
preceding financial year.
xviii) There has been no resignation of the statutory auditors
of the Company during the year. Accordingly, provisions
of clause 3 (xviii) of the Order are not applicable.
xix) According to the information and explanations given
to us and on the basis of the financial ratios, ageing
and expected dates of realization of financial assets
and payment of financial liabilities, other information
accompanying the financial statements, our knowledge
of the Board of Directors and Management’s plans and
based on our examination of the evidence supporting
the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty
exists as on the date of the audit report that Company
is not capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within
a period of one year from the balance sheet date. We,
however, state that this is not an assurance as to the
future viability of the Company. We further state that
our reporting is based on the facts up to the date of
the audit report and we neither give any guarantee nor
any assurance that all liabilities falling due within a
period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.
a) There are no unspent amounts towards Corporate
Social Responsibility (CSR) on other than ongoing
projects requiring to be transferred to a Fund
specified in Schedule VII to the Companies Act in
compliance with second proviso to sub-section
(5) of section 135 of the said Act. Accordingly,
provisions of clause 3 (xx) (a) of the Order are not
applicable.
b) There are on ongoing CSR projects under
sub-section (6) of section 135 of the said Act.
Accordingly, provisions of clause 3 (xx) (b) of the
Order are not applicable.
xxi) The reporting under clause 3(xxi) of the Order is not
applicable in respect of audit of standalone financial
statements. Accordingly, no comment in respect of the
said clause has been included in this report.
For B.R. Gupta & Co.
Chartered Accountants,
Firm Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number 073696
UDIN : 22073696AMMSGU7037
Place of Signature : New Delhi
Date: May 25, 2022
119
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
STANDALONE BALANCE SHEET
as at March 31, 2022
Particulars
Note No.
(Amount in ` Lakhs, unless otherwise stated)
As At
March 31, 2021
As At
March 31, 2022
I.
II.
ASSETS
Non-current assets
(a)
(b)
(c)
(d)
(e)
(f)
Property, plant and equipment
Capital work in progress
Right of use assets
Investment properties
Other Intangible assets
Financial assets
(i)
Investments
(ia)
Investment in subsidiaries
Investment - others
(ib)
Loans
Deferred Tax Assets (net)
Other non current assets
(ii)
(iii) Other financial assets
(g) Non current tax assets (net)
(h)
(i)
Total Non-current assets
CURRENT ASSETS
(a)
(b)
Investments
Trade receivables
Inventories
Financial assets
(i)
(ii)
(iii) Cash and cash equivalents
(iv)
(v)
(vi) Other financial assets
Other current assets
(c)
Total current assets
Total assets
Bank balances other than cash and cash equivalents
Loans
Equity share capital
Other equity
Equity and liabilities
Equity
(a)
(b)
Total equity
Liabilities
Non- current liabilities
(a)
Financial liabilities
Borrowings
(i)
Lease Liabilities
(ia)
(ii)
Others financial liabilities
Provisions
Deferred tax liabilities (net)
Other non current liabilities
(b)
(c)
(d)
Total non- current liabilities
Current liabilities
(a)
Financial liabilities
Borrowings
(i)
Lease Liabilities
(ia)
Trade payables
(ii)
- Total outstanding due of micro enterprises and small enterprises
- Total outstanding due of creditors other than micro enterprises and
small enterprises
(iii) Other financial liabilities
(b)
Other current liabilities
(c)
Provisions
Total current liabilities
Total equity and liabilities
Summary of Significant Accounting Policies
The accompanying notes form an integral part of these financial statements
4
5
49
6
7
8
9
10
11
13
12
14
15
9
16
17
18
10
11
14
19
20
21
49
23
24
12
25
22
49
26
23
25
24
3
12,413.17
-
2,171.47
5,904.48
72.06
11,761.04
875.13
5.38
652.98
567.72
-
52.46
34,475.89
22,179.09
532.26
11,591.48
4,322.04
2,137.64
35.98
493.32
10,582.14
51,873.95
86,349.84
2,166.39
32,181.67
34,348.06
8,333.50
2,147.63
240.92
934.22
232.27
3,006.08
14,894.62
17,634.44
391.22
663.71
17,219.96
235.32
852.51
110.00
37,107.16
86,349.84
12,848.58
41.63
2,903.27
6,054.60
54.07
11,578.00
336.63
492.31
754.72
556.75
390.53
53.60
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
77,696.01
2,166.39
29,205.63
31,372.02
8,199.78
2,836.18
137.28
944.06
-
3,013.35
15,130.65
13,327.55
381.57
481.65
15,688.60
530.61
710.90
72.46
31,193.34
77,696.01
As per our Report of even date attached
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
Place of Signature: New Delhi
Date: May 25, 2022
120
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
Place of Signature: Gurugram
Date: May 25, 2022
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
PEARL GLOBAL INDUSTRIES LIMITED
STANDALONE STATEMENT OF PROFIT AND LOSS
for the year ended March 31, 2022
Note No.
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
77,140.04
2,408.39
79,548.43
For the year ended
March 31, 2022
93,377.06
3,204.83
96,581.89
Particulars
Revenue from operations
Other income
Total income (I+II)
I
II
III
IV Expenses
(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
Total expenses
Profit/ (loss) before exceptional items and tax (III-IV)
Exceptional Items
V
VI
VII Profit/ (loss) before tax (V-VI)
VIII Tax expense:
(a) Current tax
(b) Deferred tax
(c) Adjustment of tax relating to earlier years
Total tax expense
IX Profit/(loss) for the year (VII-VIII)
Other comprehensive income
X
(i)
(A)
Items that will not be reclassified to profit or loss
(a) Re-measurement gains/ (losses) on defined benefit plans
Income tax on items that will not be reclassified to profit or loss
Items that will be reclassified to of profit or loss
(a) Net movement in effective portion of cash flow hedge reserve
Income tax on items that will be reclassified to profit or loss
(b) Exchange differences
translating
the financial
in
(ii)
(B)
(i)
(ii)
statements of a foreign operation
Other comprehensive income for the year, net of tax
Total comprehensive income for the year, net of tax
XI
XII Earnings per share: (face value ` 10 per share)
1) Basic (amount in `)
2) Diluted (amount in `)
Summary of Significant Accounting Policies
27
28
29
30
31
32
33
34
35
36
12
37
38
3
42,862.08
671.60
(726.87)
15,219.19
2,585.30
1,762.91
31,252.11
93,626.32
2,955.58
(655.01)
3,610.59
397.95
496.86
-
894.81
2,715.78
81.36
(20.48)
419.03
(105.46)
(114.20)
-
260.26
2,976.04
12.54
12.54
23,058.22
24,340.92
(91.01)
10,779.00
2,401.62
1,813.42
19,429.61
81,731.78
(2,183.35)
(1,263.82)
(919.52)
-
(1,007.86)
10.94
(996.92)
77.40
84.32
(26.31)
979.45
(342.72)
11.96
-
706.70
784.10
0.36
0.36
As per our Report of even date attached
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
Place of Signature: New Delhi
Date: May 25, 2022
Place of Signature: Gurugram
Date: May 25, 2022
121
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
STANDALONE STATEMENT OF CASH FLOW
for the year ended March 31, 2022
Particulars
Cash flows from operating activities
Profit before and tax
Adjustments for:
Depreciation and amortisation
Interest paid and other borrowing cost
Sundry balances written back
Provision written back
Sundry balances written off
Gain on lease modification
Grant amortised during the year
Amortisation of deferred rental income
Unwinding of discount on security deposits Income
Unwinding of discount on security deposits Expense
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 or loss
Income on corporate guarantee
Loss Allowance for doubtful debts and advances
Enhanced Compensation Reeceivable
Loss /(Profit) on Sale of Property, plant & equipment
Impairment of investment in subsidiary
Foreign Currency Transalation Reserve on Foreign Operation
Operating profit before working capital changes
Movement in working capital:
(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
Cash generated from operations
Direct tax paid (net of refunds)
Cash flow before exceptional items
Exceptional items:
Enchanced Compensation Receivable on Compulsary Acquisition
(Profit)/loss on sale of property,plant & equipment
Impairment of investment in subsidiaries provided/(written off)
Investment Written off
Net cash inflow from/(used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment (Including ROU, net with
lease liabilities)
Sale proceeds of property, plant and equipment
(Increase)/decrease in capital work in progress
Sale/(Purchase) of investment properties
Sale/(Purchase) of Intangible assets
In capital advances
Increase/(decrease) in capital creditors
(Increase)/decrease in Investment in subsidiaries
122
( A )
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
3,610.59
1,762.91
2,585.30
(297.41)
(204.11)
410.37
(50.38)
(1.00)
(16.44)
(25.70)
14.08
(16.34)
(769.38)
(149.53)
(573.58)
(132.75)
294.84
-
-
-
(114.20)
6,327.28
2,166.41
130.27
167.22
42.23
(3,586.18)
(8,909.96)
2,010.85
89.56
(61.26)
71.52
114.88
(6.28)
173.71
(1,269.74)
(408.92)
(1,678.66)
-
(628.18)
(30.00)
3.17
(2,333.67)
(913.62)
165.22
41.63
714.60
(48.52)
(41.10)
(110.84)
(23.45)
(919.52)
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
(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
(98.30)
5,390.79
(2,335.15)
1,037.41
33.91
-
4,126.96
(193.47)
12.41
190.87
218.04
(9.20)
66.43
173.53
324.31
PEARL GLOBAL INDUSTRIES LIMITED STANDALONE STATEMENT OF CASH FLOW
for the year ended March 31, 2022 (Contd.)
Particulars
(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
Net Cash From/ (Used In) Investing Activities
Cash flows from financing activities
Increase/ (decrease) in long term borrowings
Increase/ (decrease) in short term borrowings
Payment of Lease Liabilities
Other borrowing cost
Interest paid
Net cash inflow from/(used in) financing activities
Net Increase (decrease) In cash and cash equivalents (A+B+C)
Opening balance of cash and cash equivalents
Total cash and cash equivalent (Note no. 17)
Components of cash and cash equivalents
Cash, Cheque/drafts on hand
With banks - Current account
With banks - Deposit account
Total cash and cash equivalent (Note no. 17)
Note :
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
16.77
12.89
1.94
(176.54)
108.72
770.91
1,517.61
For the year ended
March 31, 2022
273.54
486.92
287.85
(1,029.49)
121.19
769.38
693.32
133.71
4,306.89
(381.57)
(721.25)
(1,974.89)
1,362.89
(277.46)
4,599.50
4,322.04
26.44
3,980.45
315.15
4,322.04
3,221.27
(3,922.15)
-
(403.94)
(2,000.02)
(3,104.84)
2,539.73
2,059.77
4,599.50
83.30
4,338.60
177.60
4,599.50
( B )
( C )
(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 investing activities includes non-cash transactions as under:
Particulars
i)
Conversion of loan given to subsidiary into equity
For the year ended
March 31, 2022
486.10
For the year ended
March 31, 2021
-
c)
The Increase/(Decrease) in liabilities arising from financing activities includes non-cash transactions as under:
Particulars
EIR adjustment of borrowings
i)
ii) Unwinding of discount on security deposit
For the year ended
March 31, 2022
7.91
14.08
For the year ended
March 31, 2021
7.39
40.24
d) During the 2021-22, the Company has made investment in a Wholly Owned Subsidiary (WOS) in USA in the name of “Pearl
Global US INC” on July 28, 2021.
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
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
Place of Signature: New Delhi
Date: May 25, 2022
Place of Signature: Gurugram
Date: May 25, 2022
123
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
STANDALONE STATEMENT OF CHANGES IN EQUITY
for the year ended March 31, 2022
(All amounts are in ` Lakhs, unless otherwise stated)
A. Equity Share Capital
As at April 1, 2020
Changes during the year
As at March 31, 2021
Changes during the year
As at March 31, 2022
B. Other Equity
Particulars
2,166.39
-
2,166.39
-
2,166.39
Reserves and Surplus
General
Reserve
Security
Premium
Capital
Redemption
Reserve
Amalga
mation
Reserve
Retained
Earnings
Other Comprehensive
Income
Effective
Portion of
Cash Flow
Hedge
Currency
Transalation
Reserve
Total Other
Equity
Balance as at April 1, 2020
4,204.36 17,103.90
95.00 625.95 7,037.54
(645.22)
- 28,421.53
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
-
-
-
-
-
-
77.40
-
-
636.73
58.01
-
-
-
-
-
-
-
-
-
77.40
636.73
58.01
11.96
11.96
-
-
-
Balance as at March 31, 2021
4,204.36 17,103.90
95.00 625.95 7,172.94
(8.49)
11.96 29,205.63
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 Translation
Reserve
-
-
-
-
-
-
-
-
-
-
-
-
- 2,715.78
-
-
-
-
-
313.57
60.88
-
-
-
-
-
-
2,715.78
313.57
60.88
(114.20)
(114.20)
Balance as at March 31, 2022
4,204.36 17,103.90
95.00 625.95 9,949.62
305.08
(102.24) 32,181.67
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
As per our Report of even date attached
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
Place of Signature: New Delhi
Date: May 25, 2022
Place of Signature: Gurugram
Date: May 25, 2022
124
PEARL GLOBAL INDUSTRIES LIMITED Notes
to standalone financial statements for the year ended March 31, 2022
1 CORPORATE INFORMATION
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, South West
Delhi, Delhi, 110057. 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
May 25, 2022.
2 BASIS OF PREPARATION AND MEASUREMENT
Statement of Compliance: The Financial Statements
are prepared on an accrual basis under historical cost
Convention except for certain financial instruments which
are measured at fair value. These financial statements have
been prepared in accordance with the Indian Accounting
Standards (Ind AS) as prescribed under Section 133 of
the Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended and
other relevant provisions of the Companies Act, 2013, as
applicable.
The accounting policies are applied consistently to all the
periods presented in the financial statements.
Basis of Preparation and presentation: The financial
statements are prepared under the historical cost convention
except for certain financial assets and liabilities (including
derivative financial instruments) that are measured at fair
value or amortised cost.
All assets and liabilities have been classified as current or
noncurrent according to the 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.
Functional and Presentation Currency
The financial statements are presented in ` which is its
functional & presentational currency and all values are
rounded to the nearest Lakh upto two decimal places except
otherwise stated.
Going Concern
The board of directors have considered the financial position
of the Company at March 31, 2022 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.
Prior financial year reclassification of current maturities of
long term borrowings:
During the current financial year, to comply with the
requirements of admendments made in Schedule III to
the Companies Act, 2013 which is effective from financial
year commencing on or after April 01, 2021, the Company
reclassified current maturities of long term borrowings from
“Other Financial Liabillty” to “Short Term Borrowings”. This
reclassification more appropriately reflects the borrowings
of the Company. Prior financial year comparatives have
been restated to align to the current financial year approach.
The impact of this reclassification on prior financial year
amounts has been a reduction in Other financial liability by
` 1,998.68 Lakh and corresponing increase in short term
borrowings.
Recent accounting pronouncements notified by Ministry
of Corporate Affairs are as under:-
Ministry of Corporate Affairs (“MCA”) notifies new standard
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. On March 23, 2022, MCA amended the Companies
(Indian Accounting Standards) Amendment Rules, 2022,
applicable from April 1, 2022, as below:
a)
Ind AS 103 – Reference to Conceptual Framework
The amendments specify that to qualify for recognition
as part of applying the acquisition method, the
identifiable assets acquired and liabilities assumed
must meet the definitions of assets and liabilities in the
Conceptual Framework for Financial Reporting under
Indian Accounting Standards (Conceptual Framework)
issued by the Institute of Chartered Accountants of
India at the acquisition date. These changes do not
significantly change the requirements of Ind AS 103.
The Company does not expect the amendment to have
any significant impact in its financial statements
b)
Ind AS 16 – Proceeds before intended use
The amendments mainly prohibit an entity from
deducting from the cost of property, plant and
items
equipment amounts received from selling
125
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
produced while the Company is preparing the asset
for its intended use. Instead, an entity will recognise
such sales proceeds and related cost in profit or loss.
The Company does not expect the amendments to
have any impact in its recognition of its property, plant
and equipment in its financial statements
c)
Ind AS 37 – Onerous Contracts - Costs of Fulfilling a
Contract
The amendments specify that that the ‘cost of fulfilling’
a contract comprises the ‘costs that relate directly to
the contract’. Costs that relate directly to a contract can
either be incremental costs of fulfilling that contract
(examples would be direct labour, materials) or an
allocation of other costs that relate directly to fulfilling
contracts. The amendment is essentially a clarification
and the Company does not expect the amendment to
have any significant impact in its financial statements.
Use of Estimates and Judgements
The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances
and assumptions about future developments, however,
may change due to market changes or circumstances
arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when
they occur. Also, the Company has made certain
judgements in applying accounting policies which
have an effect on amounts recognised in the financial
statements.
d)
Ind AS 109 – Annual Improvements to Ind AS (2021)
i)
Income taxes
The amendment clarifies which fees an entity includes
when it applies the ‘10 percent’ test of Ind AS 109 in
assessing whether to derecognise a financial liability.
The Company does not expect the amendment to have
any significant impact in its financial statements.
e)
Ind AS 116 – Annual Improvements to Ind AS (2021)
The amendments remove the
illustration of the
reimbursement of leasehold improvements by the
lessor in order to resolve any potential confusion
regarding the treatment of lease incentives that might
arise because of how lease incentives were described
in that illustration. The Company does not expect
the amendment to have any significant impact in its
financial statements.
3 SIGNIFICANT ACCOUNTING POLICIES
a) Significant accounting judgements, estimates and
assumptions
The preparation of financial statements in conformity
with Ind AS requires management to make judgements,
estimates and assumptions that affect the application
of accounting policies and the reported amount of
assets, liabilities, income, expenses and disclosures
of contingent assets and liabilities at the date of
these financial statements and the reported amount
of revenues and expenses for the years presented.
the estimates.
Actual
Estimates and underlying assumptions are reviewed
at each balance sheet date. Revisions to accounting
estimates are recognised in the period in which the
estimates are revised and future periods affected.
results may differ
from
126
The Company is subject to income tax laws as
applicable in India. Significant judgment is required
in determining provision for income taxes. There
are many transactions and calculations for which
the ultimate tax determination is uncertain during
the ordinary course of business. The Company
recognises liabilities for anticipated tax issues
based on estimates of whether additional taxes
will be due. Where the final tax outcome of these
matters is different from the amounts that were
initially recorded, such differences will impact
the income tax and deferred tax provisions in the
period in which such determination is made. Where
tax positions are uncertain, accruals are recorded
within income tax liabilities for management’s best
estimate of the ultimate liability that is expected
to arise based on the specific circumstances and
the Company’s historical experience. Factors
that may have an impact on current and deferred
taxes include changes in tax laws, regulations
or rates, changing interpretations of existing tax
laws or regulations, future levels of research and
development spending and changes in pre-tax
earnings.
ii) Contingencies
Contingent Liabilities may arise from the ordinary
course of business in relation to claims against
the Company, including legal and other claims.
By virtue of their nature, contingencies will be
resolved only when one or more uncertain future
events occur or fail to occur. The assessment
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
of the existence, and potential quantum, of
contingencies inherently involves the exercise of
significant judgements and the use of estimates
regarding the outcome of future events.
iii) Recoverability of deferred taxes
In assessing the recoverability of deferred tax
assets, management considers whether it is
probable that taxable profit will be available
against which the losses can be utilised. The
ultimate realisation of deferred tax assets is
dependent upon the generation of future taxable
income during the periods in which the temporary
differences become deductible. Management
considers the projected future taxable income
and tax planning strategies
in making this
assessment.
iv) Defined benefit plans
The present value of the gratuity and compensated
absences are determined using actuarial
valuations. An actuarial valuation
involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting
date.
The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
actuary considers the interest rates of government
bonds in currencies consistent with the currencies
of the post-employment benefit obligation. The
mortality rate is based on publicly available
mortality tables for the specific countries. Those
mortality tables tend to change only at interval in
response to demographic changes. Future salary
increases and gratuity increases are based on
expected future inflation rates for the respective
countries.
v) Useful lives of property, plant and equipment
The Company reviews the useful life of property,
plant and equipment at the end of each reporting
period. This reassessment may result in change
in depreciation expense in future periods.
vi) Leases
assessing whether
Where the Company is the lessee, key judgements
include
arrangements
contain a lease and determining the lease term.
To assess whether a contract contains a lease
requires judgement about whether it depends on
a specified asset, whether the Company obtains
substantially all the economic benefits from the
use of that asset and whether the the Company
has a right to direct the use of the asset. In
order to determine the lease term judgement is
required as extension and termination options
have to be assessed along with all facts and
circumstances that may create an economic
incentive to exercise an extension option, or not
exercise a termination option. The Company
revises the lease term if there is a change in the
non-cancellable period of a lease. Estimates
include calculating the discount rate which is
generally based on the incremental borrowing
rate specific to the lease being evaluated or for
a portfolio of leases with similar characteristics.
lessor, the
Where the The Company
is mainly
treatment of
determined by whether the lease is considered to
be an operating or finance lease. In making this
assessment, management looks at the substance
of the lease, as well as the legal form, and makes
a judgement about whether substantially all of the
risks and rewards of ownership are transferred.
Arrangements which do not take the legal form
of a lease but that nevertheless convey the
right to use an asset are also covered by such
assessments.
is the
leasing transactions
vii) Amortisation of Government Grants
Grants are amortised to Profit and Loss on a
straight - line basis over the expected lives of
related assets and presented within other income.
viii) Impairment of financial instruments
The Company analyses regularly for indicators
of impairment of its financial instruments by
reference to the requirements under relevant Ind
AS.
The management’s estimates and assessments
in particular on assumptions
were based
regarding the development of the economy as a
whole, the development of textilles markets, and
the development of the basic legal parameters.
127
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
b) Current versus non-current classification
The Company presents assets and
in
the balance sheet based on current/ non-current
classification.
liabilities
Assets:
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.
Liabilities:
A liability is current when:
(a)
(b)
(c)
It is expected to be settled in normal operating cycle
It is held primarily for the purpose of trading
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.
Operating cycle: 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.
c) Property, Plant and Equipment (PPE) and Depreciation
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.
128
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.
Items of stores and spares that meet the definition of
property, plant and equipment are capitalised at cost
and depreciated over their useful life. Otherwise, such
items are classified as inventories.
Transition to Ind AS: 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.
Subsequent costs: 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.
Decommissioning Costs : The present value of the
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)
Capital work in progress: Capital work in progress
comprises the cost of property, plant & equipment 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:
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 :
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
-
-
Property, plant & equipment costing upto ` 5,000
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.
d)
Investment Properties
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.
Transition to Ind AS: 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) Other Intangible assets
Recognition and measurement
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 amortised over estimated useful life.
Transition to Ind AS
On transition to Ind AS, the Company has elected to
continue with the carrying value of all its intangible
assets recognised as at April 01, 2016, measured as
per the previous GAAP, and use that carrying value as
the deemed cost of such intangible assets.
Subsequent Expenditure: Subsequent expenditure is
capitalised only when it increases the future economic
benefits embodied in the specific asset to which it
relates. All other expenditure is recognised in Statement
of Profit and Loss as incurred.
Amortisation and useful lives: Intangible assets with
finite lives are amortised over the useful life and these
are 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. Specialised
softwares are amortised over a period of 3 years or
license period whichever is earlier.
f) Borrowing costs
the borrowing of
Borrowing costs consists of interest and amortisation
of ancillary costs that an entity incurs in connection
with
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.
g) Foreign Currency Transactions and Translations
Functional and presentational currency
The Company’s financial statements are presented in
Indian Rupees ( ` in Lakhs) 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.
129
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Transactions and balances
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.
h) Revenue Recognition
The Company derives revenue primarily from export of
manufactured and traded goods.
Revenue from contract with customers
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).
130
The Company assesses its revenue arrangements
against specific recognition criterior like exposure
to significant risks & rewards associated with the
sale of goods or services. When deciding the most
appropriate basis for presenting revenue or costs
of revenue, both the legal form and substance of the
agreement between the Company and its Customers
are reviewed to determine each party’s respective role
in the transaction.
Specific revenue recognition criteria:
(i) Sale of products
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
(ii) Job work income
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.
(iii) Export Incentives
Export Incentives under various schemes are
accounted in the year of export.
(iv) Other Incomes
a) Sale of software/ SAP income is recognised
at the delivery of complete module & patches
group
(through
companies).
reimbursement
from
b) Rental Income is recognised 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 recognised when the
right to receive is established.
Variable Consideration
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
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
will not occur when the associated uncertainty with the
variable consideration is subsequently resolved.
Significant Financing Component
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.
Contract balances
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 capitalised costs
related to fulfilment.
i)
Inventories
i)
ii)
iii)
Inventories of finished goods manufactured by
the Company are valued style-wise and at lower
of cost and estimated net realisable 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
an
and work-in-progress,
appropriate share of fixed production overheads
based on normal operating capacity..
includes
cost
Inventories of finished goods (traded) are valued
at lower of procurement cost (FIFO method) or
estimated net realisable value.
Inventories of raw material, work in progress,
accessories & consumables are valued at cost
(weighted average method) or at estimated
net realisable 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 realisable 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 realisable 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.
j)
Leases
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
Company as a lessee
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
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NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
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
recognises 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:
i)
Right-of-use assets
lease
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
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.
ii) Lease Liabilities
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
132
also include the exercise price of a purchase
option reasonably certain to be exercised by
the Company and payments of penalties for
terminating the lease, if the lease term reflects
the Company exercising the option to terminate.
Variable lease payments that do not depend on
an index or a rate are recognised as expenses
(unless they are incurred to produce inventories)
in the period in which the event or condition that
triggers the payment occurs. In calculating the
present value of lease payments, the Company
uses its incremental borrowing rate at the lease
commencement date because the interest rate
implicit in the lease is not readily determinable.
After the commencement date, the amount of
lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments (e.g., changes to future payments
resulting from a change in an index or rate used
to determine such lease payments) or a change
in the assessment of an option to purchase the
underlying asset. The Company’s lease liabilities
are included in other current and non-current
financial liabilities.
(iii) Short-term leases and leases of low-value assets
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.
Company as a lessor
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
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
direct costs incurred in negotiating and arranging
an operating lease are added to the carrying
amount of the leased asset and recognised over
the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the
period in which they are earned.
k) Employee’s benefits
Short term employee benefits: All employee benefits
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.
Defined contribution plan
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.
to government
The contributions paid/payable
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.
Defined benefit plan
A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan.
The Company has an obligation towards gratuity,
a defined benefit retirement plan covering eligible
employees. The plan provides for a lump sum payment
to vested employees at retirement, death while in
employment or on termination of employment of an
amount based on the respective employee’s salary
and the tenure of employment. Vesting occurs upon
completion of five years of service. The Company
accounts for the liability for gratuity benefits payable
in future based on an independent actuarial valuation
report using the projected unit credit method as at the
year end.
The obligations are measured at the present value of
the estimated future cash flows. The discount rate is
generally based upon the market yields available on
Government bonds at the reporting date with a term
that matches that of the liabilities.
Re-measurements, comprising actuarial gains and
losses, the effect of the changes to the asset ceiling
(if applicable) and the return on plan assets (excluding
interest and if applicable), is reflected immediately in
Other Comprehensive Income in the statement of profit
and loss. All other expenses related to defined benefit
plans are recognised in statement of profit and loss
as employee benefit expenses. Re-measurements
recognised
Income will
in Other Comprehensive
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.
Other long term employee benefits
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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NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
l)
Provisions
General
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.
m) Financial instruments
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.
(i) Financial assets
Initial recognition and measurement
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.
Subsequent measurement
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)
134
-
Financial Asset at fair value through profit
and loss (FVTPL)
Financial asset carried at amortised cost
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.
Financial asset at fair value through other
comprehensive income (FVTOCI)
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.
Financial asset at fair value through profit and
loss (FVTPL)
A financial asset which is not classified in any of
the above categories are subsequently fair valued
through profit or loss.
De-recognition
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.
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
(ii) Financial liabilities
(iv) Derivative financial instruments
Initial recognition and measurement 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.
Subsequent measurement
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.
De-recognition
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.
(iii) Offsetting of financial instruments
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 recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously
Till March 31, 2019, the Company used derivative
financial instruments, such as forward currency
contracts, to hedge its foreign currency risks.
instruments were
Such derivative financial
initially recognised at fair value on the date on
which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivatives
are carried as financial assets when the fair value
is positive and as financial liabilities when the fair
value is negative. Any gains or losses arising from
changes in the fair value of derivatives are taken
directly to statement of profit and loss.
(v) Hedge Accounting
With effect from April 2019, the Company
adopted Hedge Accounting.The derivatives that
are designated as hedging instrument under
Ind AS 109 to mitigate risk arising out of foreign
currency transactions are accounted for as cash
flow hedges. The Company enters into hedging
instruments
in accordance with policies as
approved by the Board of Directors with written
is consistent with the risk
principles which
management strategy of the Company.
The hedge
instruments are designated and
documented as hedges at the inception of the
contract. The effectiveness of hedge instruments
is assessed and measured at inception and on an
ongoing basis.
When a derivative is designated as a cash flow
hedging
instrument, the effective portion of
changes in the fair value of the derivative is
recognised 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 recognised
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
longer meets
instrument no
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
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to standalone financial statements for the year ended March 31, 2022 (Contd.)
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 recognised
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.
n)
Impairment of financial assets
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.
o)
Impairment of non-financial assets
is any
If any such
The carrying amounts of the Company’s non-
financial assets, other than deferred tax assets,
are reviewed at the end of each reporting period
indication of
to determine whether there
indication exists, then
impairment.
the asset’s
is estimated.
recoverable amount
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 recognised, 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
136
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.
p) Fair value measurement
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at
the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:
(a)
In the principal market for the asset or liability, or
(b)
In the absence of a principal market, in the most
advantageous market for the asset or liability
A fair value measurement of a non-financial asset takes
into account a market participant’s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.
The Company uses valuation techniques that are
in the circumstances and for which
appropriate
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
liabilities for which fair value
is
All assets and
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
liabilities
Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement
indirectly observable
Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable
identical assets or
is directly or
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.
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
q) Taxes
Current income tax
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.
The Government of India has issued the Taxation Laws
(Amendment) Act, 2019, which provides domestic
companies an option to pay corporate tax at reduced
rates effective April 1, 2019 subject to certain conditions.
The Company intends to opt for lower tax regime from
assessment year 2022-23 and accordingly the impact
has been considered in computing deferred tax.
Deferred tax
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 realised 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 recognised directly in equity/other
comprehensive income is recognised 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).
Minimum Alternate Tax
Minimum Alternate Tax (MAT) paid in the year is
charged to the Statement of Profit and Loss as current
tax.The Company recognises MAT credit available as
an asset only to the extent that there is convincing
evidence that the Company will pay normal income
tax during the specified period, i.e., the period for which
MAT credit is allowed to be carried forward. In the year
in which Company recognises MAT credit as an asset
in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternate
Tax under the Income Tax Act, 1961, the said asset
is created by way of credit to the Statement of Profit
and Loss and shown as “MAT Credit Entitlement”. The
Company reviews the “MAT Credit Entitlement” asset
at each reporting date and writes down the asset to
the extent the Company does not have convincing
evidence that it will pay normal tax during the specified
period.
In accordance with Ind AS 12 Company is grouping
MAT credit entitlement with Deferred Tax Assets/
Liabilities (Net).
r)
Investment in subsidiaries
Investment in subsidiaries
is an option to measure
in
There
subsidiaries at cost in accordance with Ind AS 27 at either:
(a) Fair value on date of transition; or
investments
(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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NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
s) Cash and cash equivalents
v) Government grants
Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which
are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash balance on hand,
cash balance at banks and short-term deposits, as
defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company’s
cash management.
t)
Statement of Cash flows
The statement of cash flows have been prepared under
indirect method, whereby profit or loss is adjusted for
the effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense
associated with investing or financing cash flows.
u) Earnings per share (EPS)
In determining earnings per share, the Company
considers the net profit after tax and includes the post
tax effect of any extraordinary items.
Basic EPS amounts are calculated by dividing the profit
for the year attributable to the shareholders of the
Company by the weighted average number of equity
shares outstanding as at the end of reporting period.
Diluted EPS amounts are calculated by dividing the
profit attributable to the shareholders of the Company
by the weighted average number of equity shares
outstanding during the year plus the weighted average
number of Equity shares that would be issued on
conversion of all the dilutive potential equity shares
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.
w) Contingent liabilities and contingent assets
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.
x) Research & development costs
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.
into equity shares.
y) Exceptional items
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.
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.
138
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
4 PROPERTY, PLANT AND EQUIPMENT
Particulars
Gross carrying amount
As at April 1, 2020
Add: Additions made during the year
Less: (Disposals)/adjustments during the year
As at March 31, 2021
Add: Additions made during the year
Less: (Disposals)/adjustments during the year
Land-
freehold
Land-
leasehold
Buildings
(All amounts are in ` Lakhs, unless otherwise stated)
Total
Vehicles
Leasehold
improvements
Plant and
Equipment
Furniture
and Fixures
1,829.72
47.74
3,930.05
557.98
8,961.64
1,026.66 1,088.06 17,441.85
-
-
532.57
-
0.49
-
20.89
22.60
235.57
(11.60)
20.27
72.96
-
(41.29)
882.77
(30.29)
1,829.72
580.32
3,930.54
601.47
9,185.61
1,046.93 1,119.73 18,294.32
-
(92.41)
38.53
92.41
21.61
-
-
813.53
22.54
16.61
912.82
(189.94)
(123.83)
-
(127.10)
(440.88)
As at March 31, 2022
1,737.31
711.25
3,952.15
411.53
9,875.30
1,069.47 1,009.24 18,766.26
Accumulated depreciation/amortisation
As at April 1, 2020
Add: Depreciation charge for the year
Less: (Disposals)/adjustments during the year
As at March 31, 2021
Add: Depreciation charge for the year
Less: (Disposals)/adjustments during the year
As at Mar 31, 2022
Net carrying amount
As at March 31, 2022
As at March 31, 2021
-
-
-
-
-
-
-
1.36
1.96
-
3.32
7.82
-
558.99
155.17
-
714.16
153.12
-
190.35
2,768.67
368.95
380.16
4,268.48
87.38
9.69
718.48
(2.65)
93.54
139.02
1,195.54
-
(25.32)
(18.28)
287.42
3,484.50
462.48
493.86
5,445.74
86.12
(142.45)
689.66
(61.92)
97.87
129.90
1,164.50
-
(52.78)
(257.14)
11.14
867.28
231.09
4,112.24
560.35
570.99
6,353.09
1,737.31
1,829.72
700.11
3,084.87
577.00
3,216.38
180.43
314.05
5,763.06
5,701.13
509.12
584.45
438.25 12,413.17
625.87 12,848.58
a) The above assets includes Gross block of land of ` 78.55 Lakhs (March 31, 2021: ` 78.55 Lakhs) situated at Narshingpur,
Tehsil District Gurgaon(Haryana). Out of this Gross block of land of ` 42.50 Lakhs (March 31, 2021: ` 42.50 Lakhs)
represents the amount for which the Company has executed a construction project agreement with DLF Retail Developers
Limited on November 30, 2007. However, as certified by the Management, the work has not started during the financial
year 2021-22 due to pending receipt of license from the concerned authority.
b) For Information on Property, plant and equipment pledged as security by the Company refer Note 21
c) The above property, plant and equipment includes assets given on lease given in the below table:
As at March 31, 2022
Gross carrying amount
Accumulated depreciation
Net carrying amount
As at March 31, 2021
Gross carrying amount
Accumulated depreciation
Net carrying amount
5 CAPITAL WORK IN PROGRESS
Particulars
Balance at the beginning of the year
Add: Addition made during the year
Less: (Disposals)/adjustments during the year
Balance at the end of the year
Plant and
Equipment
Furniture and
Fixures
27.77
21.64
6.13
27.77
18.96
8.81
21.22
18.20
3.02
21.22
15.24
5.98
Total
48.99
39.84
9.15
48.99
34.20
14.79
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
41.63
-
(41.63)
-
232.50
-
(190.87)
41.63
139
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
a) Breakup of capital work in progress is as follows:
Building
b) Ageing schedule of CWIP as at March 31, 2022:
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
-
-
41.63
41.63
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
Amount in CWIP for a period of
Total
Less than 1 year
1-2 years
Projects in progress
Projects temporarily suspended
-
-
-
-
Ageing schedule of CWIP as at March 31, 2021:
2-3 years More than 3
years
-
-
-
-
-
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
Total
Amount in CWIP for a period of
Projects in progress
Projects temporarily suspended
41.63
-
-
-
Less than 1 year
1-2 years
2-3 years More than
3 years
-
-
-
-
41.63
-
c) There are no capital-work-in progress as at March 31, 2022 and as at March 31, 2021 whose completion is overdue or has
exceeded its cost as compared to its original plan.
6 INVESTMENT PROPERTIES
Particulars
Gross carrying amount
As at April 01, 2020
Add: Additions made during the year
Less: Disposals/adjustments during the year
As at March 31, 2021
Add: Additions made during the year
Less: Disposals/adjustments during the year
As at Mar 31, 2022
Accumulated depreciation and amortisation
As at April 01, 2020
Add: Depreciation & amortisation charge for the year
Less: Disposals/adjustments during the year
As at March 31, 2021
Add: Depreciation & amortisation charge for the year
Less: Disposals/adjustments during the year
As at Mar 31, 2022
Net carrying amount
As at Mar 31, 2022
As at March 31, 2021
Land freehold
(All amounts are in ` Lakhs, unless otherwise stated)
Total
Land leasehold
Building
3,135.92
103.45
(1,401.01)
1,838.36
60.39
(23.07)
1,875.68 0.00
10.36
-
-
10.36
-
(10.36)
-
-
-
-
-
-
-
-
-
-
-
-
4,580.71
228.52
(197.49)
4,611.74
-
(129.65)
4,482.09
333.73
86.77
(14.64)
405.86
82.20
(34.76)
453.30
7,726.99
331.97
(1,598.50)
6,460.46
60.39
(163.08)
6,357.77
333.73
86.77
(14.64)
405.86
82.20
(34.76)
453.30
1,875.68
1,838.36
0.00
10.36
4,028.80
4,205.88
5,904.48
6,054.60
140
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2022
For the year ended
March 31, 2021
(a) Amounts recognised in Statement of Profit and Loss for investment
properties
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
Income from Investment properties (net)
(b) Fair value of investment properties
Estimation of fair value
769.38
47.44
0.75
721.19
82.20
638.99
770.91
56.44
8.44
706.03
86.77
619.26
11,213.29
10,259.00
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.
7 OTHER INTANGIBLE ASSETS
Particulars
Gross carrying amount
As at April 1, 2020
Add: Additions made during the year
Less: (Disposals) / adjustments during the year
As at March 31, 2021
Add: Additions during the year
Less: (Disposals) / adjustments during the year
As at March 31, 2022
Accumulated amortisation
As at April 01, 2020
Add: Amortisation charge for the year
Less: (Disposals) / adjustments during the year
As at March 31, 2021
Add: Amortisation charge for the year
Less: (Disposals) / adjustments during the year
As at March 31, 2022
Net carrying amount
As at March 31, 2022
As at March 31, 2021
(All amounts are in ` Lakhs, unless otherwise stated)
Computer Software
Total
265.11
9.20
-
274.31
48.53
-
322.84
180.35
39.89
-
220.24
30.53
-
250.78
72.06
54.07
265.11
9.20
-
274.31
48.53
-
322.84
180.35
39.89
-
220.24
30.53
-
250.77
72.06
54.07
141
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
8 INVESTMENT IN SUBSIDIARIES
Particulars
Non- Current
Investments in equity shares of Subsidiaries - (unquoted)
(At Cost)
Pearl Global Far East Limited, Hong Kong (Refer note (c)
below)
1195000 (March 31, 2021: 535000) Equity Shares of USD
1 Each fully paid up
Pearl Apparel Fashions Limited, India
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
3,283.39
2,797.29
27639145 (March 31, 2020 27639145) Equity Shares of
` 10 each fully paid up
1,648.35
1,648.35
Less: Provision for diminution in value of Investments
(1,648.35)
- (1,648.35)
-
-
6,231.90
6,291.36
5.00
5.00
2,238.98
2,213.35
1.00
0.76
1.00
-
270.00
11,578.00
13,256.35
1,678.35
11,578.00
Pearl Global (HK) Limited, Hong Kong
1610000 (March 31, 2021: 1610000) Equity Shares of USD
1 each fully paid up
Pearl Global Kausal Vikas Limited
50000 (March 31, 2021: 50000) Equity Shares of ` 10 each
fully paid up
Norp Knit Industries Limited, Bangladesh
3381211 (March 31, 2021: 3381211) Equity Shares of Taka
100 Each fully paid up
SBUYS E-commerce Limited
10000 (March 31, 2021: 10000) Equity Shares of ` 10 each
fully paid up
Pearl Global USA Inc. (Refer note (d) below)
1000 (March 31, 2021: Nil) Equity Shares of USD 1 each
fully paid up
Investment in Preference Share of Subsidiary - (Unquoted)
(At Amortised Cost)
Pearl Apparel Fashions Limited, India (Refer note (e) below)
Nil (March 31, 2021: 3000000) Preference Shares of ` 10
each fully paid up
Less: Provision for diminution in value of Investments
-
-
300.00
-
(30.00)
i)
Aggregate value of unquoted investments
ii) Aggregate amount of impairment in value of unquoted
investments
iii) Aggregate value of unquoted investments (net of
impairment)
11,761.04
13,409.38
1,648.35
11,761.04
142
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
(a)
Information about subsidiaries
Name of Company
Country of
incorporation
(All amounts are in ` Lakhs, unless otherwise stated)
Principal activities
Porportion (%) of equity interest
As At
March 31, 2022
As At
March 31, 2021
India
India
Trading of garments
Skill Development
Subsidiaries
Pearl Apparel Fashions Limited
Pearl Global Kaushal Vikas
Limited
(Formally known as Pixel
Industries Limited)
Pearl Global Far East Limited
Pearl Global (HK) Limited
Hong Kong
Hong Kong
Norp Knit Industries Limited
Bangladesh
SBUYS E-Commerce Limiited
India
Pearl Global USA Inc.
USA
Trading of garments
Manufacturing and
trading of garments
Manufacturing and
trading of garments
Online Trading of
garments
Trading of garments
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
NA
(b)
Investment in equity shares of subsidiary includes Income from Corporate Guarantee for the following Companies:-
Name of the Company
Pearl Global (HK) Limited, Hong Kong
Norp Knit Industries Limited, Bangladesh
Total
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
299.70
37.34
337.05
359.16
11.71
370.87
c) During the FY 2021-22, loan of USD 6.60 Lakhs in Pearl Global Fareast Limited, Hongkong, has been converted into USD
6.60 Lakhs ordinary equity shares of USD 1.00 each of the PGFE.
d) During the FY 2021-22, the Company has made investment in a Wholly Owned Subsidiary (WOS) in USA in the name of
“Pearl Global US INC” on July 28, 2021.
e) 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 in aforesaid subsidiary and recognised the same at its recoverable in 2020-21.
During the FY 2021-22, the Company has received ` 296.83 Lakhs from Pearl Apparel Fashions Limited on redemption of
preference share capital of Pearl Apparel Fashions Limited. Provision for Impairment amounting to ` 30 Lakhs has been
written back and Investment for the same has been written of by ` 3.17 Lakhs.
f) The number of shares in note above represents absolute numbers.
9 INVESTMENTS OTHERS
Particulars
Non- Current
A. Equity Instruments- Quoted
(At Fair value through profit and loss)
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
PDS Limited (Formerly known as PDS Multinational Fashions Limited) 50000
(March 31, 2021: 50000) Equity Shares of ` 10 each fully paid up
873.50
335.00
143
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
873.50
335.00
B.
Investments in Government securities -Unquoted
(At Amortised cost)
Investments in Government securities
- Gold Sovereign Bond- 37 units of 2 gram each issued by Reserve Bank of India
Total (A + B)
Current
C.
Investments in mutual funds - (Quoted)
Investments carried at fair value through profit and loss
1.63
1.63
875.13
1.63
1.63
336.63
ICICI Prudential Short Term Fund DP Growth
273.64
260.63
536068.057 units of Face Value of ` 10 per unit (March 31, 2021: 536068.057 units)
L&T Banking and PSU debt fund direct plan - growth
-
246.01
Nil units of Face Value of ` 10 per unit (March 31, 2021: 1223214.3850 units)
IDFC Banking and PSU debt fund direct plan - growth
1267806.9250 units of Face Value of ` 10 per unit (March 31, 2021:
1267806.9250 units)
258.62
247.74
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.
532.26
1,405.76
1,405.76
1.63
1.63
754.38
1,089.38
1,089.38
1.63
1.63
10 Loans
Particulars
(Unsecured, considered good unless otherwise stated)
Loans to employees
Loans Receivables considered good – Unsecured
Loans to related parties (Refer Note No. 46)
(All amounts are in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
5.38
-
5.38
7.21
485.10
492.31
35.98
-
35.98
23.84
300.00
323.84
a) The Company has no loans which have significant increase in credit risk and loans which are credit impaired. (Refer Note
No. 43)
144
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
11 OTHER FINANCIAL ASSETS
(Unsecured, considered good unless otherwise stated)
Particulars
Security deposits
Interest accrued but not due on
- Term deposits and others
- Loan to related parties
Deposits with original maturity of more than 12
months (Refer note 18)
Financial Liabilites at Fair Value through OCI - Cash
Flow Hedge
Other receivables
(All amounts are in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
603.05
As At
March 31, 2021
706.07
Current
As At
March 31, 2022
16.21
As At
March 31, 2021
28.56
5.95
-
43.98
-
3.11
-
45.54
40.09
-
-
14.59
168.75
-
-
406.69
-
-
652.98
-
754.72
30.34
493.32
-
211.91
12 INCOME TAX
The major components of income tax expense for the years ended March 31, 2022 and March 31, 2021 are:
Statement of profit and loss:
Profit or loss section
Particulars
Tax Expense:
a) Current tax
b) Adjustments in respect of relating to earlier years
c) Deferred tax
Income tax expense reported in the statement of profit or loss
OCI section
Deferred tax related to items recognised in OCI during the year:
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
397.95
-
496.86
894.80
-
10.94
(1,007.86)
(996.92)
Net loss/(gain) on remeasurements of defined benefit plans
(20.48)
(26.31)
Income tax on items that will be reclassified subsequently to statement of profit
and loss
Income tax charged to OCI
(105.46)
(125.95)
(342.72)
(369.03)
a) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for March 31, 2022 and
March 31, 2021.
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
Accounting profit before tax from continuing operations
3,610.59
(919.52)
Accounting profit before income tax
At India’s statutory income tax rate of 25.168% (March 31, 2021: 31.2%)
Adjustments in respect of current income tax of previous years
908.71
-
(286.89)
10.94
145
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
Particulars
Deferred tax impact of change in tax
MAT Change
Change in B/f lossees
Tax effect of the amounts which are Non-deductible/(taxable) for tax
purposes:
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 25.168 % (March 31, 2021: 31.20 %)
Income tax expense reported in the statement of profit and loss
-
76.85
(54.68)
35.57
(99.35)
27.70
894.80
894.80
-
-
32.58
(800.39)
46.83
(996.92)
(996.92)
b) Deferred tax:
Particulars
Deferred tax assets relates to the following:
Provision for employee benefits
Expenses allowed in the year of payment
Unaborsbed Losses
Lease Liabilities
Mark to Mark Forward Contracts - Cash Flow Hedge
Others
Deferred tax liability relates to the following:
Property, plant and equipment
Right to use assets
Fair valuation of mutual fund
Borrowing (EIR)
Others
MAT Credit Entitlement
(All amounts are in ` Lakhs, unless otherwise stated)
Balance sheet et
As at
March 31, 2022
As at
March 31, 2021
349.69
191.69
255.61
638.98
(102.36)
5.97
1,339.59
990.52
546.52
17.11
1.99
15.72
-
395.70
219.67
764.67
1,003.94
3.85
100.85
2,488.68
1,227.05
905.82
17.55
4.06
20.51
1,571.86
2,175.00
-
76.85
390.53
(A)
(B)
(C)
Total deferred tax assets/(liabiities) (Net)
(A-B+C)
(232.27)
146
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
c) The movement between net deferred tax assets /(liabilities) is as under :
Particulars
Deferred tax assets relates to
the following:
Provision for employee benefits
Expenses allowed in the year of
payment
Lease Liabilities
Mark to Mark Forward Contracts
- Cash Flow Hedge
Others
Deferred tax liability relates to
the following:
Property, plant and equipment
Right to use assets
Fair valuation of mutual fund
Borrowing (EIR)
Others
MAT Credit Entitlement
Total deferred tax assets/
(liabities) (Net)
Particulars
Deferred tax assets relates to
the following:
Provision for employee benefits
Expenses allowed in the year of
payment
Unaborsbed Losses
Lease Liabilities
Mark to Mark Forward Contracts
- Cash Flow Hedge
Others
Deferred tax liability relates to
the following:
Property, plant and equipment
Right to use assets
Fair valuation of mutual fund
Borrowing (EIR)
Others
MAT Credit Entitlement
Total deferred tax assets
(liabiities) (Net)
As At
March 31, 2021
Adjusted
against
current tax
(All amounts are in ` Lakhs, unless otherwise stated)
As At
Recognised in
Recognised
March 31, 2022
Statement of Other
in Statement
Comprehensive
of Profit and
Income
Loss
395.70
219.67
1,003.94
3.85
100.85
2,488.68
1,227.05
905.82
17.55
4.06
20.51
-
2,175.00
76.85
390.53
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(25.53)
(27.98)
(364.96)
(0.74)
(94.88)
(1,023.16)
(236.53)
(359.30)
(0.44)
(2.07)
(4.79)
-
(603.15)
(76.85)
(496.86)
(20.48)
-
-
(105.46)
(125.94)
-
-
-
-
-
-
-
-
(125.94)
349.69
191.69
638.98
(102.36)
5.97
1,339.59
990.52
546.52
17.11
1.99
15.72
1,571.86
-
(232.27)
As At
April 1, 2020
Adjusted
against
current tax
(All amounts are in ` Lakhs, unless otherwise stated)
Recognised
Recognised in
As At
in Statement
Statement of Other
March 31, 2021
of Profit and
Comprehensive
Loss
Income
442.25
197.89
17.07
1,065.71
346.57
167.20
2,236.69
1,434.36
913.56
7.93
8.46
197.55
2,561.86
76.85
(248.32)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(20.24)
21.78
747.60
(61.77)
0.00
(66.35)
621.01
(207.31)
(7.74)
9.62
(4.40)
(177.04)
(386.85)
-
1,007.86
(26.31)
-
-
-
(342.72)
-
(369.03)
-
-
-
-
-
-
-
(369.03)
395.70
219.67
764.67
1,003.94
3.85
100.85
2,488.68
1,227.05
905.82
17.55
4.06
20.51
2,175.00
76.85
390.53
147
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
d) 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.
e) The Government of India has issued the Taxation Laws (Amendment) Act, 2019, which provides domestic companies an
option to pay corporate tax at reduced rates effective April 1, 2019 subject to certain conditions. The Company intends to
opt for lower tax regime from assessment year 2022-23 and accordingly the impact has been considered in computing
deferred tax. During the year, Company has written off balance MAT Credit Entitlement of ` 76.85 Lakhs as the benefit of
MAT credit is not available to Companies which opts for lower corporate tax rate.
13 NON CURRENT TAX ASSET
Particulars
Advance income tax
(Net of provision of ` 1,685.98 Lakhs (March 31, 2021 : ` 1,288.03 Lakhs)
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
567.72
556.75
567.72
556.75
14 OTHER ASSETS
Particulars
(Unsecured, considered good, unless otherwise stated)
Capital advances (Refer Note No. 45b)
Balance with government authorities - considered good
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
Less: Loss Allowance
(All amounts are in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
12.61
-
22.74
(22.74)
1.84
7.70
-
-
-
30.31
29.03
15.03
22.74
(22.74)
1.84
7.71
-
-
-
-
52.46
53.60
57.51
2,812.06
-
-
-
461.93
3539.74
121.59
435.12
3,307.46
(153.28)
10,582.14
-
2,103.76
-
-
3.13
209.41
1,215.59
116.98
462.32
2,731.49
-
6,842.69
a) Other Receivables of ` 3,009.35 Lakhs ( March 31, 2021 ` 2,538.77 Lakhs) includes enhanced compensation of ` 2,335.15
Lakhs 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 36). Further, it includes expenditure recoverable from
Jharkhand State Livelihood Promotion Society (Ministry of Rural Development) regarding Project cost component for
skilling candidates in state of Jharkhand.
148
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
15 INVENTORIES
Particulars
Raw materials
Good in transit- raw materials
Work in progress
Finished goods
Scrap Stock
Stores spares & others
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
12,858.83
243.35
5,142.30
3,825.43
41.82
67.36
-
4,905.89
19.88
5,703.23
2,412.60
166.84
60.68
-
22,179.09
13,269.13
a) Refer note 21 for information on above assets being pledged as security by the Company.
16 TRADE RECEIVABLES
Particulars
Trade receivables considered good - secured
Trade receivables considered good - unsecured
Trade receivables - credit impaired
Less: Allowance for Expected Credit Loss
(All amounts are in ` Lakhs, unless otherwise stated)
As At
March 31, 2021
-
14,521.72
656.18
(656.18)
14,521.72
As At
March 31, 2022
-
11,591.48
572.61
(572.61)
11,591.48
a) Trade receivables ageing schedule as at March 31, 2022:
Particulars
Outstanding for following periods from due date of payment
(All amounts are in ` Lakhs, unless otherwise stated)
(i) Undisputed Trade receivables
– considered good
(ii) Undisputed Trade Receivables –
which have significant increase
in credit risk
(iii) Undisputed Trade Receivables
– credit impaired
(iv) Dispute Trade Receivables
considered good
(v) Disputed Trade Receivables
which have significant increase
in credit risk
(vi) Disputed Trade Receivables –
credit impaired
Not due Less than
6 months
3,779.88
7,799.55
6 months
-1 year
1-2 years
2-3 years More than
Total
3 years
5.78
2.87
3.41
-
11,591.48
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
572.61
572.61
-
-
-
-
-
-
Less: Allowances for expected credit loss
Net Trade receivables
-
7,799.55
-
3,779.88
-
5.78
-
2.87
-
3.41
(572.61)
(572.61)
- 11,591.48
149
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Trade receivables ageing schedule as at March 31, 2021:
Particulars
Outstanding for following periods from due date of payment
(All amounts are in ` Lakhs, unless otherwise stated)
(i) Undisputed Trade receivables
– considered good
(ii) Undisputed Trade Receivables –
which have significant increase
in credit risk
(iii) Undisputed Trade Receivables
– credit impaired
(iv) Dispute Trade Receivables
considered good
(v) Disputed Trade Receivables
which have significant increase
in credit risk
(vi) Disputed Trade Receivables –
credit impaired
Less: Allowances for expected
credit loss
Net Trade receivables
Not due Less than
6 months
9,847.18
3,597.22
6 months
-1 year
1-2 years
2-3 years More than
Total
3 years
911.61
64.87
100.83
-
14,521.72
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
656.18
656.18
-
-
-
-
-
-
-
(656.18)
(656.18)
3,597.22
9,847.18
911.61
64.87
100.83
- 14,521.72
a) The movement in the allowance for expected credit loss allowance is as follows:
Particulars
Balance as at beginning of the year
Loss allowances during the year
Trade receivables written off / written back during the year
Balance as at the end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As At
March 31, 2021
377.32
278.88
-
656.18
As At
March 31, 2022
656.18
-
(83.57)
572.61
b) Trade receivables are generally on terms of 45- 60 days (March 31, 2021: 0-180 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 ` 5,599.37 Lakhs (March 31, 2021: ` 2,008.11 Lakhs) (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.
17 CASH AND CASH EQUIVALENTS
Particulars
Balances with banks:
- Current account
- Deposits with original maturity of less than 3 months
Cash on hand
Cheque/drafts on hand
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
3,980.45
315.15
5.91
20.53
4,338.60
177.60
3.90
79.40
4,322.04
4,599.50
a)
For the purpose of the statement of cash flow, the cash and cash equivalent are same given above.
b) Refer note 21 for information on above assets being pledged as security by the Company.
150
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
18 BANK BALANCES OTHER THAN CASH & CASH EQUIVALENTS
Particulars
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 (Refer note (a) below)
Balance with bank (Considered doubtful)
Less: Loss Allowance
Less: Amount disclosed under “Other Financial Assets” (Refer Note No.11)
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
26.24
29.75
2,111.40
43.98
-
-
2,181.62
43.98
2,137.64
1,078.40
45.54
0.03
(0.03)
1,153.69
45.54
1,108.15
a) Refer note 21 for information on above assets being pledged as security by the Company.
b) The bank has created as lien/charge on any amount kept by the borrower time to time with the bank as term deposit and
other deposit maximum upto ` 4,400 Lakhs for Letter of credit issued for the Company.
19 SHARE CAPITAL
Particulars
Authorised
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
51440000* (March 31, 2021: 51440000) equity shares of ` 10 each
10000* (March 31, 2021: 10000) 4% Non Cumulative Redeemable Preference
Shares of ` 10 each
3256000* (March 31, 2021: 3256000) 10.5% Non Cumulative Redeemable
Preference Shares of ` 100 each
Issued, subscribed and paid up
21663937* (March 31, 2021: 21663937) Equity Shares of ` 10 each fully paid up
5,144.00
1.00
5,144.00
1.00
3,256.00
3,256.00
8,401.00
8,401.00
2,166.39
2,166.39
2,166.39
2,166.39
* Number of Shares are given in absolute numbers.
a) Reconciliation of issued and subscribed share capital:
Equity Share of ` 10 each
Balance as at April 1, 2020
Changes during the year
Balance as at March 31, 2021
Changes during the year
Balance as at March 31, 2022
No. of shares
Amount
2,16,63,937
-
2,16,63,937
-
2,16,63,937
2,166.39
-
2,166.39
-
2,166.39
b) Terms/ rights attached to equity shares:
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
151
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of
liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the
shareholders. Subsequent to the balance sheet date, the Board of Directors has declared interim dividend of ` 5/- per
share for FY 2021-22 for distribution to shareholders.
c) Details of shareholders holding more than 5% shares in the Company
Name of Shareholder
As at March 31, 2022
As at March 31, 2021
(All amounts are in ` Lakhs, unless otherwise stated)
Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mr. Sanjiv Dhireshbhai Shah
Total
No. of shares
4413635
2862145
6947621
1761979
15985380
% of total shares
20.37
13.21
32.07
8.13
73.78
No. of shares
4413635
2862145
6947621
1881004
16305883
% of total shares
20.37
13.21
32.07
8.68
75.26
d)
Details of Promotor’s shareholding:
(All amounts are in ` Lakhs, unless otherwise stated)
Name of Shareholder
As at March 31, 2022
As at March 31, 2021
Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth
Nim International Commerce LLP
Total
No. of shares
4413635
2862145
6947621
201478
30
14424909
% of total
shares
20.37
13.21
32.07
0.93
0.00
66.58
No. of shares
4413635
2862145
6947621
201478
30
14424909
% of total
shares
20.37
13.21
32.07
0.93
0.00
66.58
% change
during the year
-
-
-
-
-
(All amounts are in ` Lakhs, unless otherwise stated)
Name of Shareholder
As at March 31, 2021
As at March 31, 2020
Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth
Nim International Commerce LLP
Total
No. of shares
44,13,635
28,62,145
69,47,621
2,01,478
30
1,44,24,909
Holding %
20.37
13.21
32.07
0.93
0.00
66.58
No. of shares
44,13,635
28,62,145
69,47,621
2,01,478
30
1,44,24,909
Holding %
20.37
13.21
32.07
0.93
0.00
66.58
% change
during the year
-
-
-
-
-
20 OTHER EQUITY
Particulars
General reserve
Securities premium
Capital redemption reserve
Amalgamation reserve
Retained earnings
Cash Flow Hedge Reserve (Net of tax of ` 101.61 Lakhs (March 31, 2021 : - ` 3.85 Lakhs)
Foreign currency translation reserve- Foreign Operations
152
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
4,204.36
17,103.90
95.00
625.95
9,949.62
305.08
(102.24)
4,204.36
17,103.90
95.00
625.95
7,172.94
(8.49)
11.96
32,181.67
29,205.63
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
I.
For Movement during the period in Other Equity, refer “Statement of Changes in Equity”.
II. Nature and purpose of reserves
a) General reserve
Particulars
Balance as at beginning/ end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
4,204.36
4,204.36
The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve
pursuant to the earlier provisions of Companies Act, 1956.Mandatory transfer to general reserve is not required under the
Companies Act, 2013.
b) Securities Premium
Particulars
Balance as at beginning/ end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
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.
c) Capital Redemption Reserve
Particulars
Balance as at beginning/ end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
95.00
95.00
This Reserve has been created at the time of merger of other companies in earlier years in accordance with the provisions
of the Companies Act, 2013.
d) Amalgamation Reserve
Particulars
Balance as at beginning/ end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
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.
e) Retained Earnings
Particulars
Balance as at beginning/ end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
9,949.62
7,172.94
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 ` 402.39 Lakhs
(March 31, 2021: ` 400.51 Lakhs) is not available for distribution.
153
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
f) Cash Flow Hedge Reserve
Particulars
Balance as at beginning/ end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
305.08
(8.49)
This reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated
portion.
g) Foreign Currency Translation Reserve
Particulars
Balance as at beginning/ end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
(102.24)
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.
21 LONG TERM BORROWINGS
Particulars
From banks (secured)
- Corporate loan [refer note a(i), a(ii) & a(iii) below]
- Vehicle loans [refer note a(iv) below]
From financials institutional (secured)
- Vehicle loans [refer note a(iv) below]
Less: Amount disclosed under other financial liabilities
as ‘Short term borrowings’ (refer note 22)
(All amounts are in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
8,254.70
78.82
8,014.64
118.30
-
8,333.50
-
66.84
8,199.78
-
2,457.55
37.52
-
64.85
2,559.91
2,559.91
1,913.56
36.58
48.55
1,998.68
1,998.68
8,333.50
8,199.78
-
-
i) Nature of Security: Following security details rank pari passu (first, second, exclusive or equitable as per respective
sanction letters) amongst different lenders under multi bank arrangement for long term borrowings:
a) Hypothecation over the entire movable/ Immovable property, plant & equipment 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) 751, Pace City-II, Sector 37,
Gurugram, (iii) Company’s property at Plot No. 51, Sector 32, Gurugram, and (iv) 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 ` 713.61 Lakhs. Other FDR’s pledged with specific banks- PNB, UCO & IndusInd Bank
are ` 876.80 Lakhs (March 31, 2021: ` 607.02 Lakhs)
e)
Irrevocable and Unconditional Personal Guarantee of Mr. Deepak Seth (Promoter Director) and Mr. Pulkit Seth
(Promoter Director)
ii) Charges not registered / Satisfied by the Company
a) Satisfaction of charges of loan relating to 5 vehicle loan have not yet been filed with Ministry of Corporate Affairs.
154
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
iii) Vehicle loans are secured against hypothecation of respective vehicles.
Maturity profile of secured term loans is as set out
below :
Term loan from banks are repayable in monthly/
quarterly/yearly installments
Vehicle loans from banks and financial institutions are
repayable in monthly installments
2022-23
2023-24
2024-25
2,457.55
2343.47
2505.99
Beyond
2024-25
3405.24
Total
10,712.25
102.37
36.81
30.67
11.34
181.19
iv) The above term loan(s) and vehicle loan(s) carries rate of interest ranging between 7.40% to 10.30% per annum.
22 SHORT TERM BORROWINGS
Particulars
Working capital loan from banks(secured)
- Rupee loan [refer note (a) below]
Current Maturities of Long Term Borrowings (Refer Note 21)
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
15,074.52
2,559.92
17,634.44
11,328.87
1,998.68
13,327.55
a) The nature of Security for short term borrowings are as under:
The Company has entered into borrowing arrangements with lenders under consortium Arrangement for short term
borrowings. The security details set out under Note 21 ranks pari passu ( as per respective santion letters) amongst all
secured lenders for short term and long term borrowings.
b) 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).
c)
For interest rate & liquidity risk related disclosures, (refer note 43).
23 OTHER FINANCIAL LIABILITIES
Particulars
Security deposit
Book overdraft
Interest accrued but not due on borrowings
Unpaid dividends (Refer note below b)
Financial Liabilites at Fair Value through OCI - Cash
Flow Hedge
Creditors for capital goods
Others
Notes:
(All amounts are in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
240.92
-
-
-
-
As At
March 31, 2021
137.28
-
-
-
-
Current
As At
March 31, 2022
6.51
-
93.59
26.24
-
As At
March 31, 2021
-
261.51
23.26
29.75
12.34
-
-
240.92
-
-
137.28
92.90
16.08
235.32
203.74
-
530.61
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 ( March 31,2021: Nil)
155
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
24 PROVISIONS
Particulars
Provision for employee benefits
Provision for compensated absenses (Refer note 39)
Provision for gratuity (Refer note 39)
25 OTHER LIABILITIES
Particulars
Advance received against sale of land
Deferred government grant
Deferred rental income
Statutory dues
26 TRADE PAYABLES
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
369.84
564.38
934.22
350.57
593.49
944.06
30.87
79.13
110.00
25.85
46.61
72.46
(All amounts are in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
2,963.62
6.58
35.88
-
3,006.08
As At
March 31, 2021
2,963.62
7.58
42.15
-
3,013.35
Current
As At
March 31, 2022
-
145.60
18.83
688.08
852.51
As At
March 31, 2021
-
145.61
15.06
550.23
710.90
(All amounts are in ` Lakhs, unless otherwise stated)
Current
As At
March 31, 2022
663.71
17,219.96
17,883.67
As At
March 31, 2021
481.65
15,688.60
16,170.25
Total Outstanding dues of Micro and Small enterprises
Total Outstanding dues of Creditors other than Micro and Small enterprises
a) Trade Payables ageing schedule as at March 31, 2022:
(All amounts are in ` Lakhs, unless otherwise stated)
Particulars
Not due
Outstanding for following periods from due date of payment
Unbilled
Less than
dues
1 year
2-3 years More than
1-2 years
3 years
Total
(i) MSME
(ii) Others
(iii) Disputed dues — MSME
(iv) Disputed dues — Others
482.99
15,087.05
-
-
180.72
1,611.90
-
-
-
6.67
-
-
-
-
-
-
-
-
-
-
-
514.34
-
-
663.71
17,219.96
-
-
Trade Payables ageing schedule as at March 31, 2021:
(All amounts are in ` Lakhs, unless otherwise stated)
Particulars
Not due
Outstanding for following periods from due date of payment
Unbilled
Less than
dues
1 year
2-3 years More than
1-2 years
3 years
Total
(i) MSME
(ii) Others
(iii) Disputed dues — MSME
(iv) Disputed dues — Others
472.48
14,404.18
-
-
9.16
934.14
-
-
-
2.05
-
-
-
1.38
-
-
-
-
-
-
-
346.85
-
-
481.65
15,688.60
-
-
156
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
a) Trade payable are non- interest bearing and are generally on a credit period of not more than 90 days except in case
of Micro & Small Enterprises (if any) which are setlled within 45 days.
b) This amount includes amount due to related parties amounting to ` 2,099.24 Lakhs (March 31, 2021: ` 7,815.58
Lakhs) (Refer Note No. 46)
c) As per Schedule III of the Companies Act, 2013 and as certified by the Management, the amount due to Micro & Small
Enterprises as defined in Micro, Small and Medium Enterprises Development Act, 2006 is as under :
Details of dues to Micro and Small Enterprises as defined under MSMED Act, 2006
(i) The amount due thereon remaining unpaid to any supplier at the end
662.58
481.53
of each accounting year
- Principal
- Interest on above
(ii) The amount of interest paid by the buyer in terms of section 16 of the
Micro, Small and Medium Enterprises Development Act, 2006 (27 of
2006), along with the amount of the payment made to the supplier
beyond the appointed day during each accounting year.
(iii) The amount of interest due and payable for the period of delay in
making payment (which has been paid but beyond the appointed
day during the year) but without adding the interest specified under
the Micro, Small and Medium Enterprises Development Act, 2006.
(iv) The amount of interest accrued and remaining unpaid at the end of
each accounting year
(v) The amount of further interest remaining due and payable even
in the succeeding year,until such date when the interest dues as
above are actually paid to the small enterprise for the purpose of
disallowance as a deductible expenditure under section 23 of the
MSMED Act 2006.
1.13
-
-
-
-
0.12
-
-
-
-
d) Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006”
is based on the information available with the Company regarding the status of registration of such vendors under
the said Act and as per the intimation received from them on requests made by the Company. There are no overdue
principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date except
disclosed above.
e) The Company’s exposure to market and liquidity risk related to trade payables are disclosed in Note no. 43.
27 REVENUE FROM OPERATIONS
Particulars
Sale of product
Job receipts
Other operating revenues
Revenue from operations
a) Performance obligation
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
73,909.07
-
3,230.97
77,140.04
For the year ended
March 31, 2022
86,203.83
25.98
7,147.25
93,377.06
Revenue is recognised upon transfer of control of products.
During the year, The Company has not entered into long term contracts with Customers and accordingly disclsoure of
unsatisfied or remaining performance obligation (which is affected by several factors like changes in scope of Contracts,
periodic revalidations, adjustment for revenue that has not been materialized, tax laws etc.) is not applicable to the
Company.
157
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
b) Disaggregation of revenue: The table below presents disaggregated revenues from contracts with customers on the basis
of geographical spread of the operations of the Company. The Company believes that this disaggregation best depicts how
the nature, amount of revenues and cash flows are affected by market and other economic factors:
Revenue based on Geography
India
Outside India
Revenue from operations
Revenue based on Customer-wise
Related Party
Non- Related Party
Revenue from operations
c) Reconciliation of revenue from operations with contracted price
Particulars
Contracted Price
Less:
Sales Returns
Rebate and Discount
For the year ended
March 31, 2022
9,247.15
84,129.91
93,377.06
For the year ended
March 31, 2021
3,614.27
73,525.76
77,140.04
For the year ended
March 31, 2022
30,389.94
62,987.11
93,377.06
For the year ended
March 31, 2021
9,570.62
67,569.42
77,140.04
For the year ended
March 31, 2022
93,374.62
For the year ended
March 31, 2021
77,212.68
-
2.44
93,377.06
72.64
-
77,140.04
d) Trade Receivables, Contract Balances
For Trade Receivables, Refer note no. 16. Further, the Company has no contracts where the period between the transfer of
the promised goods or services to the customer and payment terms by the customer exceeds one year. In light of above;
-
-
it does not adjust any of the transaction prices for the time value of money, and
there is no unbilled revenue as at March 31, 2022.
Further, the Company doesn’t have any contract liabilities as at March 31, 2022 and March 31, 2021
e) Under the Remission of Duties and Taxes on Export Products (RoDTEP), the Company is eligible to claim a government
grant in the form of refunds of embedded taxes and duties. The scheme has been effective since January 1, 2021. However,
the incentive rates were not notified by the authorities till the last day of the previous year i.e March 31, 2021 .For the
relevant period from January 1, 2021 to March 31, 2021, the Company had recognized income towards RoDTEP basis
estimated calculations and pending notification of the rates.
The Ministry of Textiles vide press release dated July 14, 2021 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. The Ministry of Textiles has decided to continue the scheme of RoSCTL up to March 31, 2024
Pursuant to the aforesaid press release, the Company has recognised the RoSCTL income for the period from April 1, 2021
to June 30, 2021 in line with the earlier rates notified and additionally also recognised ` 337.21 Lakhs in the quarter ended
June 30, 2021 being the balance income to the extent previously not recognized during the fourth quarter of the financial
year 2020-2021 i.e; January 1, 2021 to March 31, 2021.
158
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
28 OTHER INCOME
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
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)
Dividend Income
Excess provision written back
Sundry balances written back
Gain on termination of lease
Miscellaneous income
94.25
55.27
97.87
769.38
825.91
16.34
573.58
7.87
160.91
340.60
50.38
212.47
3,204.83
55.81
63.58
117.07
770.91
751.47
16.61
255.85
-
-
133.67
-
243.41
2,408.39
29 COST OF RAW MATERIAL CONSUMED
Particulars
Raw Material
Balance at the beginning of the Year
Add:- Purchases during the year
Less:- Balance at the end of the Year
Total raw material consumption
30 PURCHASE OF STOCK IN TRADE
Particulars
Purchases during the year
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
4,905.89
50,815.02
55,720.91
12,858.83
42,862.08
6,485.70
21,478.41
27,964.11
4,905.89
23,058.22
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
24,340.92
24,340.92
For the year ended
March 31, 2022
671.60
671.60
31 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE
Particulars
Inventories at the beginning of the year
Work-in-progress
Finished goods
Scrap Stock
Inventories at the end of the year
Work-in-progress
Finished goods
Scrap Stock
(Increase) / decrease in inventory (A-B)
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
5,703.23
2,412.60
166.84
8,282.67
5,142.30
3,825.43
41.82
9,009.55
(726.87)
(A)
(B)
7,086.13
1,072.32
33.21
8,191.67
5,703.23
2,412.60
166.84
8,282.67
(91.01)
159
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
32 EMPLOYEE BENEFITS EXPENSE
Particulars
Salaries, wages & bonus
Contribution to provident and other fund (Refer note 39)
Gratuity expense (Refer note 39)
Compensated absences
Staff training & welfare expenses
33 FINANCE COSTS
Particulars
Interest expense
- on term loans,cash credit & working capital facilities
- delayed payment of taxes
- lease liabilities
Unwinding of discount on security deposit
Other borrowing cost
34 DEPRECIATION AND AMORTISATION EXPENSE
Particulars
Depreciation of property, plant and equipment (Refer note 4)
Depreciation & amortisation of Investment Properties (Refer note 6)
Amortisation of intangible assets (Refer note 7)
Amortisation of Right-of-use assets (Refer note 49)
35 OTHER EXPENSES
Particulars
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)
160
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
9,617.59
569.20
229.39
178.16
184.67
10,779.00
For the year ended
March 31, 2022
13,622.34
834.10
255.24
203.67
303.84
15,219.19
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
1,573.30
5.82
270.85
14.08
721.25
2,585.30
1,639.39
1.51
304.66
40.24
415.82
2,401.62
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
1,195.54
86.77
39.89
491.22
1,813.42
For the year ended
March 31, 2022
1,164.50
82.20
30.53
485.69
1,762.91
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
12,878.85
260.36
955.18
73.64
114.81
479.41
1,803.34
418.20
For the year ended
March 31, 2022
21,878.38
321.62
1,227.10
191.69
84.72
885.21
1,797.88
894.46
145.58
24.59
382.36
112.44
440.93
218.62
324.23
219.17
31.35
75.12
7.18
335.17
59.13
264.75
220.75
176.24
148.93
29.52
PEARL GLOBAL INDUSTRIES LIMITED NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Sundry Balances written off
Corporate social responsibility (refer note 'b' below)
Loss Allowance for doubtful debts and advances
Loss on sale of Licenses
Miscellaneous expenses
Total
a) Details of payment made to auditors is as follows:
Particulars
i)
Payment to Auditor
- Statutory audit fee
- Other Services
- Reimbursement of Expenses
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
96.29
27.10
278.86
95.38
631.41
19,429.61
For the year ended
March 31, 2022
551.93
80.54
153.28
366.89
919.16
31,252.11
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
19.50
10.00
1.85
31.35
19.50
9.65
0.37
29.52
b) Details of Corporate Social Responsibility (CSR) expenditure is as follows:
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
22.26
For the year ended
March 31, 2022
23.92
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
iii) Shortfall at the end of the year
iv) Total of previous years shortfall
v) The Company does not have any ongoing projects as at March 31, 2022
and March 31, 2021.
vi) The Company does not have any transactions with related parties for
CSR expenditure as at March 31, 2022 and March 31, 2021.
-
80.54
-
-
-
-
-
27.10
-
-
-
-
36 EXCEPTIONAL ITEMS
Particulars
Profit on sale of property, plant and equipment and investment property (Refer Note
'a' below)
Impairment of investment in subsidiaries written back(Refer Note 8(e))
Investment written off (Refer note 8 (e))
Enhanced Compensation on Land Acquisition by NHAI
a) The figures in bracket above represents income/profit.
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
1,037.41
For the year ended
March 31, 2022
(628.18)
(30.00)
3.17
-
(655.01)
33.91
-
(2,335.15)
(1,263.82)
161
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22 NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
37 COMPONENTS OF OTHER COMPREHENSIVE INCOME
Particulars
A (i) Items that will not be reclassified to profit or loss
Re-measurement gains/ (losses) on defined benefit plans
Income tax expense on items that will not be reclassified to profit or loss
B (i) Items that will be reclassified to profit or loss
Cash Flow Hedging reserve on forward contract
Income tax expense on items that will be reclassified to profit or loss
Foreign currency transalation reserve
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
81.36
(20.48)
-
-
419.03
(105.46)
(114.20)
260.26
84.32
(26.31)
979.45
(342.72)
11.96
706.70
38 EARNINGS PER SHARE (EPS)
Particulars
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 )
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
77.40
21,663,937
For the year ended
March 31, 2022
2,715.78
21,663,937
` 10
12.54
` 10
0.36
39 GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS
a) Defined contribution plans
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.
Particulars
Employer's Contribution to Provident Fund/ Pension Fund
Employer's Contribution to Employee State Insurance
Employer's Contribution to Welfare Fund
Total
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
423.74
138.43
7.03
569.20
For the year ended
March 31, 2022
623.70
197.78
12.62
834.10
The contribution payable to these schemes by the Company are at the rates specified in the rules of the schemes.
b) Defined benefit plans
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” recognises 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.
i)
Gratuity scheme
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. The gratuity is funded in current year for all the units and maintained by Life
Insurance Corporation of India . Till previous financial year 2020-21, the status of gratuity was as under:
a) Gratuity in case of Gurgaon Division was funded & maintained by Life Insurance Corporation of India
162
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
b) Gratuity in case of Chennai & Banglore Division was unfunded.
ii) Other long term employee benefits
As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future
periods to either be utilised during the service, or encashed. Encashment can be made during the service, on early
retirement, on withdrawal of scheme, at resignation by employee and upon death of employee. The scale of benefits
is determined based on the seniority and the respective employee’s salary. The Company records an obligation for
such compensated absences in the period in which the employee renders the services that increase this entitlement.
The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.
Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding interest and if applicable), is reflected immediately in Other Comprehensive
Income in the statement of profit and loss in case of Gratuity. All other expenses related to defined benefit plans are
recognised in statement of profit and loss as employee benefit expenses. Re-measurements recognised in Other
Comprehensive Income will not be reclassified to statement of profit and loss hence it is treated as part of retained
earnings in the statement of changes in equity. Gains or losses on the curtailment or settlement of any defined benefit
plan are recognised when the curtailment or settlement occurs. Curtailment gains and losses are accounted for as
past service costs.
c) The following tables summarize the components of net benefit expense recognised in the Statement of profit and loss and
the funded status and amounts recognised in the balance sheet for the defined benefit plan and other long term benefits.
These have been provided on accrual basis, based on year end actuarial valuation.
Change in benefit obligation
Particulars
Opening defined benefit obligation
Interest cost
Service cost
Past Service cost
Benefits paid
Actuarial (gain) / loss on obligations
Present value of obligation as at the end of the year
(All amounts are in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity (Funded)
929.10
69.78
207.89
-
(199.61)
(90.40)
916.76
As at March 31, 2021
Gratuity
(Funded)
654.60
44.29
89.46
-
(92.36)
(41.19)
654.80
Gratuity
(Unfunded)
298.17
20.02
100.21
-
(90.10)
(53.96)
274.33
d) 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:
Cost for the year included under employee benefit
Particulars
Current service cost
Past service cost
Interest cost
Expected return on plan assets
Actuarial (gain) / loss
Net cost
(All amounts are in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity (Funded)
207.89
-
69.78
(22.42)
-
255.24
As at March 31, 2021
Gratuity
(Funded)
89.46
-
44.29
(24.55)
-
109.19
Gratuity
(Unfunded)
100.21
-
20.02
-
-
120.23
163
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
e) Changes in the fair value of the plan assets are as follows:
(All amounts are in ` Lakhs, unless otherwise stated)
Particulars
As at March 31, 2022
Gratuity (Funded)
Fair value of plan assets at the beginning
Expected return on plan assets
Contributions
LIC charges
Benefits paid
Actuarial gains / (losses) on the plan assets
Fair value of plan assets at the end
298.57
22.42
22.70
(4.37)
(57.04)
(9.03)
273.25
As at March 31, 2021
Gratuity
(Funded)
363.22
24.55
4.43
-
(92.36)
(10.84)
289.02
Gratuity
(Unfunded)
-
-
-
-
-
-
-
f) Detail of actuarial gain/loss recognised in OCI is as follows:
Particulars
Actuarial gain / (loss) for the year – obligation
Actuarial gain / (loss) for the year - plan assets
Unrecognised actuarial gains / (losses) at the end of year
(All amounts are in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity (Funded)
90.39
(9.03)
81.36
As at March 31, 2021
Gratuity
(Funded)
41.19
(10.84)
30.36
Gratuity
(Unfunded)
53.96
-
53.96
g) Principal actuarial assumptions at the balance sheet date are as follows:
Particulars
Economic assumptions
1. Discount rate
2. Rate of increase in compensation levels
Demographic assumptions
1. Retirement Age (years)
2. Mortality Rate
Withdrawal Rate (Average in case of unfunded amounts)
1. Ages from 18 to 30 Years
2. Ages from 30 to 45 Years
3. Ages Above 45 years
(All amounts are in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity (Funded)
As at March 31, 2021
Gratuity
(Funded)
Gratuity
(Unfunded)
7.51%
5.00%
6.76%
5.00%
6.72%
5.00%
58
58
Indian Assured Lives
Mortality (2012-14)
(modified) ultimate
Indian Assured Lives
Mortality (2012-14)
(modified) ultimate
3.00%
2.00%
1.00%
3.00%
2.00%
1.00%
5.66%
5.66%
5.66%
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.
h) Net (assets) / liabilities recognised in the Balance Sheet and experience adjustments on actuarial gain / (loss) for
benefit obligation and plan assets.
Particulars
Present value of obligation
Less: Fair value of plan assets
Net assets /( liability)
(All amounts are in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity (Funded)
916.76
273.25
(643.51)
As at March 31, 2021
Gratuity
(Funded)
654.79
289.02
(365.77)
Gratuity
(Unfunded)
274.33
-
(274.33)
164
PEARL GLOBAL INDUSTRIES LIMITED NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
i)
Expected contribution for the next year is ` 965.67 Lakhs (March 31, 2021: ` 492.69 Lakhs) in respect of Gratuity.
j) A quantitative sensitivity analysis for significant assumptions is as shown below:
Particulars
A. Discount rate
Effect on DBO due to 1% increase in Discount Rate
Effect on DBO due to 1% decrease in Discount Rate
B. Salary escalation rate
(All amounts are in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity (Funded)
As at March 31, 2021
Gratuity
(Funded)
Gratuity
(Unfunded)
(93.76)
111.49
(61.46)
71.91
(29.09)
34.40
Effect on DBO due to 1% increase in Salary Escalation Rate
Effect on DBO due to 1% decrease in Salary Escalation Rate
34.74
(29.85)
C. Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated.
Further, there are no changes in current year from the previous corresponding period in the methods and assumptions
used in preparing the sensitivity analysis.
113.23
(96.65)
72.51
(63.00)
k) Risk
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.
l) Maturity profile of cash outflows relating to defined benefit obligation are as follows:
Particulars
0 to 1 years
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
From 5 years onwards
(All amounts are in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity (Funded)
80.06
31.17
63.98
88.75
130.34
1,208.66
As at March 31, 2021
Gratuity
(Funded)
67.06
33.07
28.21
50.46
74.33
753.72
Gratuity
(Unfunded)
9.78
11.47
22.85
47.49
66.68
470.02
40 CAPITAL MANAGEMENT
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
- 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
165
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
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:
Particulars
Borrowings (Refer to note 21 and 22)
Interest accrued but not due on borrowings (refer note no. 23)
Less: Cash and Cash Equivalents (Refer to note 17)
Net debt (A)
Equity share capital (Refer to note 19)
Other equity (Refer to note 20)
Total Capital (B)
Capital and net debt (A+B=C)
Gearing ratio (A/C)
As At
March 31, 2022
25,967.94
93.59
(4,322.04)
21,739.51
2,166.39
32,181.67
34,348.07
56,087.57
38.76%
As At
March 31, 2021
21,527.33
23.26
(4,599.50)
16,951.10
2,166.39
29,205.63
31,372.02
48,323.12
35.08%
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2022
and March 31, 2021.
In order to achieve overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
41 DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE
I) Hedge Accounting
(i) 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 1, 2019. Hedging strategies are decided and monitored periodically by Chief Financial Officer and Board of
Directors of the Company.
Cash Flow Hedges
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.
(ii) The fair value of derivative financial instruments is as follows:
Particulars
Fair value of foreign currency forward exchange contract designated as
hedging instruments
(All amounts are in ` Lakhs, unless otherwise stated)
Liabilities
Assets
March 31, 2021
March 31, 2022
12.34
406.69
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, 2022 were assessed to be highly
effective and unrealised profit of ` 419.03 Lakhs, with a deferred tax assets of ` 105.46 Lakhs relating to the hedging
instruments, is included in OCI. (March 31, 2021: Unrealised profit of ` 979.45 Lakhs with a corresponding deferred tax
assets of ` 342.72 Lakhs).
(iii) Maturity Profile: The following table includes the maturity profile of the foreign exchange forward contracts:
Particulars
As at March 31, 2022 (`)
Notional amount (in USD)
Average forward rate (USD/`)
As at March 31, 2021 (`)
Notional amount (in USD)
Average forward rate (USD/`)
Less than
1 month
8,031.01
104.99
76.49
-
-
-
1 to 3
months
12,657.88
165.36
76.55
-
-
-
3 to 6
months
19,245.30
249.00
77.29
-
-
-
6 to 9
months
14,329.11
183.68
78.01
-
-
-
9 to 12
months
8,296.72
105.50
78.64
2,278.85
30.00
-
Total
62,560.03
808.53
77.37
2,278.85
30.00
75.96
166
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
(iv) The impact of the hedging instruments on the balance sheet is as follows:
The line item in Balance Sheet where hedge instrument is disclosed under other current financial assets (March 31 2021:
Other current Financial Liabilities). The changes in fair value of forward exchange contract are disclosed as under:
Particulars
Foreign currency risk forward contract- As at March 31, 2022 (Asset)
Foreign currency risk forward contract- As at March 31, 2021 (Liability)
(All amounts are in ` Lakhs, unless otherwise stated)
Amount (`)
406.69
979.45
(v) The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows:
Particulars
As at March 31, 2022
Highly probable forecast sales
As at March 31, 2021
Highly probable forecast sales
(vi) Impact of hedging on equity
Total hedging gain/
(loss) recognised
in OCI
419.03
979.45
Line item in
Statement of profit
and loss
Cash Flow Hedge
Reserve (OCI)
Cash Flow Hedge
Reserve (OCI)
Amount
reclassified from
OCI to profit or loss
907.55
(All amounts are in ` Lakhs, unless otherwise stated)
Line item in
Statement of
profit and loss
Revenue from
Operations
Revenue from
Operations
19.15
Set out below are the details of each component of equity and the analysis of other comprehensive income in respect of CFHR.
Particulars
As at March 31, 2022
Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts
Amount reclassified to profit & loss
Tax effect
As at March 31, 2021
Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts
Amount reclassified to profit & loss
Tax effect
(All amounts are in ` Lakhs, unless otherwise stated)
Cash Flow Hedge
Reserve (CFHR)
419.03
(907.55)
907.55
(105.46)
979.45
(19.15)
19.15
(342.72)
(vii) Valuation Technique
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.
II) Particulars of Unhedged foreign currency exposures:
Particulars
As At March 31, 2022
As At March 31, 2021
(All amounts are in ` Lakhs, unless otherwise stated)
Foreign currency receivable
Foreign currency payable
Foreign currency loan receivable
Foreign Currency
(In absolute no.)
-
-
-
Amount
-
-
-
Foreign Currency
(In absolute no.)
$ 21,920,846.96
€ 2,635.05
$ 889,599
Amount
16,111.82
2.27
653.85
III)
In respect of the derivative contracts entered into by the Company, the Management asessess no material foreseeable
losses as at the reporting date.
167
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
42 FAIR VALUE MEASUREMENTS
I
Financial instruments
a) Financial instruments by category
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..
b) Fair value hierarchy
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:
As at March 31, 2022
Particulars
Financial assets measured
at fair value
Investment in equity shares
(Quoted)
Investment in mutual funds
Financial Assets at Fair Value
through OCI - Cash Flow
Hedge
Financial assets not
measured at fair value
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
Other Receivable
Trade receivables
168
(All amounts are in ` Lakhs, unless otherwise stated)
FVOCI
FVTPL
Carrying amount
Financial
Assets -
amortised
cost
Financial
Liabilities -
amortised
cost
Total
carrying
amount
Fair value
Level 1 Level 2 Level 3
Total
-
873.50
-
406.69
532.26
-
-
-
-
-
-
-
873.50
873.50
532.26
406.69
532.26
406.69
-
-
-
-
-
-
-
-
-
-
-
-
11,761.04
-
11,761.04
-
-
-
-
-
-
-
-
-
1.63
41.36
-
619.26
46.04
-
43.98
-
-
-
-
-
-
-
-
-
1.63
41.36
-
619.26
46.04
-
43.98
-
-
30.34
11,591.48
-
-
30.34
11,591.48
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
873.50
-
-
532.26
406.69
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Carrying amount
Fair value
(All amounts are in ` Lakhs, unless otherwise stated)
Level 1 Level 2 Level 3
Total
Cash and cash equivalents
Other bank balances
Financial liabilities not
measured at fair value
Borrowings
Lease Liabilities
Security Deposits
Interest accrued but not due
on borrowings
Unpaid dividends
Trade payables
Creditors for capital goods
Others
As at March 31, 2021
Particulars
Financial assets measured
at fair value
Investment in equity shares
(Quoted)
Investment in mutual funds
Financial assets not
measured at fair value
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
FVOCI
FVTPL
Financial
Assets -
amortised
cost
4,322.04
2,137.64
406.69 1,405.76 30,594.80
-
-
-
-
Total
carrying
amount
Financial
Liabilities -
amortised
cost
-
-
-
-
- 32,407.25 1,812.45
4,322.04
2,137.64
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,967.94
2,538.85
247.44
93.59
25,967.94
2,538.85
247.44
93.59
26.24
17,883.67
92.90
16.08
26.24
17,883.67
92.90
16.08
46,866.71 46,866.71
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 1,812.45
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(All amounts are in ` Lakhs, unless otherwise stated)
FVOCI
FVTPL
Carrying amount
Financial
Assets -
amortised
cost
Financial
Liabilities -
amortised
cost
Total
carrying
amount
Fair value
Level 1 Level 2 Level 3
Total
-
335.00
-
754.38
-
-
-
-
335.00
335.00
754.38
754.38
-
-
-
-
-
-
-
-
-
-
-
-
-
11,308.00
-
11,308.00
-
-
-
-
-
-
-
-
270.00
1.63
31.04
785.10
734.62
17.70
168.75
45.54
-
-
-
-
-
-
-
-
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
-
-
-
14,521.72
4,599.50
1,108.15
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
335.00
-
754.38
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
169
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22 NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Carrying amount
Fair value
(All amounts are in ` Lakhs, unless otherwise stated)
FVOCI
FVTPL
Financial
Assets -
amortised
cost
- 1,089.38 33,591.76
Financial
Liabilities -
amortised
cost
Total
carrying
amount
Level 1 Level 2 Level 3
Total
- 34,681.14 1,089.38
Financial liabilities
measured at fair value
Financial Liabilites at Fair
Value through OCI - Cash
Flow Hedge
Financial liabilities not
measured at fair value
Borrowings
Lease Liabilities
Security Deposits
Book overdraft
Interest accrued but not due
on borrowings
Unpaid dividends
Trade payables
Creditors for capital goods
Others
12.34
-
-
-
12.34
12.34
-
-
-
-
-
-
-
-
-
12.34
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,527.33
3,217.75
137.28
261.51
23.26
21,527.33
3,217.75
137.28
261.51
23.26
-
-
-
-
-
29.75
16,170.25
203.74
-
29.75
16,170.25
203.74
-
41,570.87 41,583.21
-
-
-
-
12.34
-
-
-
-
-
-
-
-
-
-
-
-
- 1,089.38
-
12.34
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.34
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 2022 and 31 March 2021.
e)
Fair value of financial assets and liabilities measured at amortised cost
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.
170
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
f)
Specific Valuation techniques used to value financial instruments include:
Type
Derivative financial instruments (forward
exchange contract)
Investments
FVTPL (quoted)
in mutual fund measured at
Investment in quoted equity instruments of
entities other than subsidiaries
Fair Value of security deposits paid & received
(Other than perpetual security deposits)
*Discount rate used in determining fair value
Valuation technique
Mark to Market valuation
Significant
Not Applicable
Inter-relationship
Not Applicable
Net asset value (‘NAV’)
technique, as stated by the
issuers of these mutual fund
units as at Balance Sheet
date
On the basis of quoted rates
available from securities
markets in India
‘Based on the discounting
factor as at reporting date.
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
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.
43 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
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:
-
-
credit risk,
liquidity risk and
- market risk.
The Company’s senior level management oversees the management of these risks and is supported by finance department that
advises on the appropriate financial risk governance framework.
A. Credit Risk
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.
(i) Trade Receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
credit risk is managed by the Company based on credit approvals, establishing credit limits and continuosly monitoring
the credit worthiness of the customers, to whom the Company grants credit period in the normal course of business
inlcuding taking credit insurance against export receivables. The Company uses expected credit loss model to assess
the impairement loss in trade receivables and makes an allowance of doubtful trade receivables using this model.
(ii) Other Financial Assets: The Company maintains exposure in cash & cash equivalents, term deposits with banks,
investments, advances and security deposits etc. 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
171
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
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. The Company’s
maximum exposure to the credit risk as at March 31, 2022 and March 31, 2021 is the carrying value of each class of
financial assets.
(iii) Exposure to Risk, in respect of the guarantees given by the Company: The disclosure in respect of credit risk
exposures which are not credit impaired or where there has not been a significant increase in credit risk since initial
recognition are as under:
- Quantitative data about exposure and maturity profile
Guarantee Given to
Standard Chartered Bank,
Hongkong Branch
Details of
Subsidiary
Pearl Global (HK)
Limited
Purpose of
Guarantee
Securing Credit
Facilities
HSBC Bank, Hongkong Branch
Pearl Global (HK)
Limited
Securing Credit
Facilities
HSBC Bank, Hongkong Branch
Pearl Global (HK)
Limited
Securing Credit
Facilities
Amount as at
March 31, 2022
USD 30.00 Lakhs
equivalent to
` 2,274.30 Lakhs
USD 200.00 Lakhs
equivalent to
` 15,162.00 Lakhs
USD 40.00 Lakhs
equivalent to
` 3,032.40 Lakhs
Guarantee
Valid Upto
February 4, 2023
November 17, 2023
December 31, 2023
- Policy of managing risk: 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.
B. Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.
The Company’s objective is to, maintain optimum levels of liquidity to meet its cash and collateral requirements. The
Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate
sources of financing including loans from banks at an optimised cost.
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted
payments.
As at March 31, 2022
Particulars
Less than 3 months
3 to 12 months
1 to 5 years
15,765.65
65.09
17,600.45
228.81
1,868.79
326.13
283.20
6.51
8,207.50
995.64
-
240.92
> 5 years
126.00
1,151.99
-
-
Total
25,967.93
2,538.85
17,883.65
476.24
33,660.00
2,484.63
9,444.06
1,277.99
46,866.68
Borrowings
Lease Liabilities
Trade payables
Other financial
liabilities
Total
As at March 31, 2021
Particulars
Less than 3 months
3 to 12 months
1 to 5 years
> 5 years
Total
172
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Borrowings
Lease Liabilities
Current maturities
of long term
borrowings
Trade payables
Other financial
liabilities
Total
C. Market risk
11,349.19
161.36
489.99
16,170.25
530.61
-
220.21
1,508.69
7,737.94
1,452.10
-
461.84
1,384.08
-
19,548.97
3,217.75
1,998.68
-
-
-
137.28
-
-
16,170.25
667.89
28,701.40
1,728.90
9,327.32
1,845.92
41,603.54
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Company’s income. The value of a financial instrument may change as a result of changes in the interest rates, foreign
currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The
objective of market risk management is to manage and control market risk exposures withing acceptables parameters,
while optimising the return. The Board of Directors is responsible for setting up the policies and procedures to amange
risks of the Company.
i)
Interest rate risk
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 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.
Interest Rate Sensitivity: The sensitivity analysis in the following sections relate to the position as at March 31, 2022
and March 31, 2021. 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:
Particulars
March 31, 2022
March 31, 2021
Increase or decrease
in basis points
50
(50)
50
(50)
Decrease / (increase)
in profit before tax
11.87
(11.87)
10.94
(10.94)
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.
ii) Foreign currency risk
The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency other
than entity’s funactional currency, hence exposure to exchange rate fluctuations arises. The risk is that the functional
currency value of cash flows will vary as a result of movements in exchange rates. The following tables demonstrate
the sensitivity (strengthening or weakening of Indian Rupee) to a reasonably possible change in exchange rates, with
all other variables held constant.
Particulars
March 31, 2022
March 31, 2021
Changes in
exchange rate
5%
(5%)
5%
(5%)
Decrease / (increase)
in profit before tax
-
-
(70.19)
70.19
173
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
44 SEGMENT INFORMATION
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 10 customers
(March 31, 2021: 8 customers).
45 CONTINGENT LIABILITIES AND COMMITMENTS
a) Contingent liabilities (To the extent not provided for)
I
The Company has reviewed all its pending claims, litigations and other proceedings and has adequately provided for
wherever required. However, wherever it is difficult for the Company to estimate the timings of cash outflows, if any,
in respect of the below as it is determinable only on receipt of judgement/decisions pending with various forums/
authorities, the Company has disclosed the same as Contingent Liabilities (pending resolution of the respective
proceedings).
The Company does not expect the outcome of these proceedings to have a material or adverse effect on financial
position of the Company. Also, the Company does not expect any reimbursements in respect of the below contingent
liabilities.
(All amounts are in ` Lakhs, unless otherwise stated)
Particulars
-Tax Demand as per Sec 154 and Sec 16(1) of Income Tax Act , 1961
(with respect to Assessment Year 2015-16) - Rectification application
has been filled)
-Tax Demand as per Sec 35(1) of Wealth Tax Act, 1957 (with respect to
Assessment Year 2015-16- Rectification u/s 154- Assessing Officer)
-Tax Demand as per Sec 250 of Income Tax Act, 1961 (with respect to
Assessment Year 2016-17) - Rectification application has been filled
with ITAT
-Tax Demand as per Sec 143(3) of Income Tax Act, 1961 (with respect to
Assessment Year 2017-18) - Rectification application has been filled
-Tax Demand as per Sec 115-O of Income Tax Act, 1961 (with respect
to Assessment Year 2017-18) - Rectification application has been filled
with Assessing Officer
-Tax Demand as per Sec 154 of Income Tax Act, 1961 (with respect to
Assessment Year 2018-19) - Appeal pending before CIT(A)
-Demand as per TDS (TRACES) portal - CPC
As at
March 31, 2022
As at
March 31, 2021
15.57
8.34
0.04
3.49
3.83
33.30
5.70
4.65
-
38.83
16.61
-
-
8.71
(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 account.
Particulars
II
Irrevocable letter of credit outstanding with banks (net of margin of
` 876.84 Lakhs)
As at
March 31, 2022
As at
March 31, 2021
3,946.24
3,870.51
(All amounts are in ` Lakhs, unless otherwise stated)
174
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
III Bank Guarantee given to government authorities
37.08
38.08
IV Counter Guarantees given by the Company to the Sales Tax
Department over which Key Managerial Personnel have Significant
influence
- For enterprise
- For others
1.00
0.50
1.00
0.50
V
The Company has given the corporate guarantees to banks of its foreign subsidiaries amounting to ` 20,468.70
Lakhs (March 2021 ` 24,541.03 Lakhs.) Refer note 43 & 46.
b) Commitments
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
420.11
-
Capital Commitment: Estimated amount of contracts remaining to be
executed on the capital account (net of capital advances of ` 70.12 Lakhs)
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.
46 RELATED PARTY TRANSACTIONS
a) List of related parties
Nature of Relationship
Subsidiary (Direct / Indirect)
Name of the Related Party
Domestic (Direct)
Pearl Apparel Fashions Limited (Formerly known as Lerros
Fashions India Limited) (Under Liquidation)
Pearl Global Kaushal Vikas Limited (Formerly known as Pixel
Industries Limited)
SBUYS E-Commerce Limited
Overseas (Direct)
Pearl Global Fareast Limited
Pearl Global (HK) Limited
Norp Knit Industries Limited
Pearl Global USA, Inc.
Overseas (Indirect)
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
(Liquidated on August 5, 2021)
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
175
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Nature of Relationship
Enterprise over which Key Managerial Personnel
exercise Significant influence
Name of the Related Party
PDS Limited (Formerly PDS Multinational Fashions Limited)
Key Management Personnel (KMP) & their relative Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth
Mr. Pallab Banerjee
Mr. Vinod Vaish
Mr. Uma Shankar Kaushik
Mr. Shailesh Kumar
Mr. Deepak Kumar
Mr. Raghav Garg
Mr.Kashmir Singh Rathour
Mr. Narendra Kumar Somani
Mr. Sandeep Sabharwal
Mr. Mayank Jain
Mr. Ravi Arora
Chariman
- Vice Chairman
- Managing Director
- Whole -Time Director
- Joint Managing Director (from
October 1, 2021)
Whole-Time Director (till April 30,
2020)
Whole-Time Director (from July
28, 2020 till January 10, 2022)
Whole-Time Director (from
October 7, 2020)
Whole-Time Director (from
Febuary 14, 2022)
Chief Financial Officer (till June
30, 2020)
Chief Financial Officer (from July
28, 2020 till April 20, 2021)
Chief Financial Officer (w.e.f
June 21, 2021)
Company Secretary (till Febuary
15, 2021)
Company Secretary (from June
21, 2021 to November 8, 2021)
Company Secretary (w.e.f
Febuary 14, 2022)
b) Disclosure of Related Parties Transactions:
(i) Subsidiary Companies
Particulars
Purchase of goods
Sale of goods - raw material
Sale of goods – readymade garments
Source support income
Income on corporate guarantee
Expenses paid by them 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
Sale of Assets
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
24,341.08
438.20
9,132.42
55.39
174.27
17.72
74.71
117.07
-
32.15
33.91
-
For the year ended
March 31, 2022
2,522.61
17.16
30,275.44
97.35
132.75
94.54
149.67
97.87
486.86
14.40
-
53.69
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 Lakhs equivalent to ` 2,274.30 Lakhs (March 31, 2021 USD 30.00
Lakhs equivalent to ` 2,205.00 Lakhs).
To Hongkong and Shanghai Banking Corporation Limited, Hongkong Branch for securing credit facilities to
its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong and its step down subsidiary DSSP Global
•
•
176
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Limited and Pearl Grass Creations Limited for USD 200.00 Lakhs equivalent to ` 15,162.00 Lakhs (March 31,
2021: USD 200.00 Lakhs equivalent to ` 14,700.00 Lakhs).
To Hongkong and Shanghai Banking Corporation Limited, Hongkong Branch for securing credit facilities to
its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong and its step down subsidiary DSSP Global
Limited and Pearl Grass Creations Limited for USD 40.00 Lakhs equivalent to ` 3,032.40 Lakhs (March 31, 2021:
USD Nil equivalent to ` Nil).
To Standard Chartered Bank, Bangladesh Branch for securing credit facilities to its subsidiary Norp Knit Industries
, Bangladesh for BDT Nil equivalent to ` Nil (March 31, 2021: BDT 9,000.00 Lakhs equivalent to ` 7,636.03 Lakhs).
•
•
Above Corporate Guarantees have been given for business purpose.
Closing Balance
Particulars
Loan given to subsidiary (inclusive of interest)
Trade Receivable
Trade Payable
Advance Receivable
(ii) Enterprise over which KMP has Significant Influence
Particulars
Dividend Received
Expenses paid by them on behalf of the Company
Loan Received Back
Interest income
Closing Balance
Particulars
Loan receivable (including interest)
(iii) Key Management Personnel (KMP)
Particulars
Remuneration paid
EPF paid
Expenses incurred on behalf of the Company
Directors sitting fees
Closing Balance
Particulars
Trade Payable - Payable to KMP
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2021
653.85
2,008.11
7,815.58
116.98
As at
March 31, 2022
-
5,599.37
2,099.24
-
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
-
2.25
-
30.05
For the year ended
March 31, 2022
7.87
2.87
300.00
28.68
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2021
300.00
As at
March 31, 2022
-
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
173.81
0.52
39.58
3.50
For the year ended
March 31, 2022
498.21
2.93
40.91
0.60
(All amounts are in ` Lakhs, unless otherwise stated)
As at
March 31, 2021
-
As at
March 31, 2022
14.40
177
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
c) Disclosure of Material Transactions: Related Parties having more than 10% interest in each transaction in the ordinary
course of business
(i) Subsidiary Companies
Particulars
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
Purchase of goods
Norp Knit Industries Limited
Pearl Global Vietnam Co Limited
DSSP Global Limited
Sale of goods - raw material
Norp Knit Industries Limited
Pearl Global Vietnam Co Limited
Pearl Apparel Fashions Limited
Sale of goods - readymate garments
Pearl Global Far East Limited
Pearl Global (HK) Limited
Pearl Grass Creations Limited
DSSP Global Limited
Sale of Assets
Pearl Global US INC
Source support income
Pearl Global (HK) Limited
SBUYS E-Commerce Limited
Income on corporate guarantee
Norp Knit Industries Limited
Pearl Global (HK) Limited
Expenses paid by them on behalf of the Company
Norp Knit Industries Limited
DSSP Global Limited
Pearl Grass Creations Limited
Pearl Global Vietnam Co Limited
Pearl Global (HK) Limited
Pearl Global Far East Limited
SBUYS E-Commerce Limited
Expenses paid by the Company on their behalf
DSSP Global Limited
Norp Knit Industries Limited
Pearl Global (HK) Limited
Pearl Global Vietnam Co Limited
P.T. Pinnacle Appreals
SBUYS E-Commerce Limited
Investment in equity shares
Pearl Global Far East Limited (Refer sub note 46(g))
Pearl Global US INC
SBUYS E-Commerce Limited
SAP income
Pearl Global Far East Limited
Pearl Global (HK) Limited
Pearl Grass Creations Limited
Interest income
Pearl Global Far East Limited
Impairment of investment in subsidiaries
Pearl Apparel Fashions Limited
Impairment of investment in subsidiaries written back
Pearl Apparel Fashions Limited
178
474.17
191.64
1,856.80
16.27
-
0.88
-
30,208.89
66.55
-
53.69
-
97.35
24.63
108.13
9.11
0.03
0.03
-
82.19
-
3.19
-
0.44
16.64
54.99
-
77.60
486.10
0.76
-
30.97
51.35
15.54
14.40
-
30.00
19,319.41
5,021.67
-
77.76
360.44
-
-
9,132.42
-
-
-
55.39
-
46.06
128.20
4.13
0.12
-
12.80
0.79
0.04
-
-
8.64
60.91
-
5.16
-
-
-
-
37.86
64.61
14.60
32.15
33.91
-
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Impairment of investment in subsidiaries written off
Pearl Apparel Fashions Limited
Closing Balance
Loan given to subsidiary (inclusive of interest)
Pearl Global Far East Limited
Amount payable
DSSP Global Limited
Norp Knit Industries Limited
Pearl Global Vietnam Co Limited
Amount receivable
Pearl Global Far East Limited
PT. Pinnacle Apparels
Pearl Global(HK) Limited.
Pearl Global Vietnam Co Limited
Pearl Grass Creations Limited
Vin Pearl Global Vietnam Limited
Norp Knit Industries Limited
Pearl Global US INC
SBUYS E-COMMERCE LIMITED
(ii) Enterprise over which KMP has significant influence
Particulars
Dividend Received
PDS Multinational Fashion Limited
Expenses paid on behalf of the Company
PDS Multinational Fashion Limited
Interest income
PDS Multinational Fashion Limited
Loan received back
PDS Multinational Fashion Limited
Closing Balance
Loan receivable (including interest)
PDS Multinational Fashion Limited
(iii) Key Management Personnel
Particulars
Remuneration paid
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Uma Shankar
Mr. Deepak Kumar
Mr. Mayank Jain
Mr. Narendra Somani
Mr. Shailesh Kumar
Mr. Pallab Banerjee
Mr. Ravi Arora
Expenses paid by the Company on their behalf
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Deepak Kumar
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
3.17
-
-
653.85
1,833.62
265.62
-
7.61
5.16
5,333.77
93.57
4.26
-
37.34
116.90
0.75
269.72
6,063.18
1,482.69
26.79
5.16
2,042.68
-
16.82
1.23
-
-
32.41
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
7.87
2.87
28.68
300.00
-
2.25
30.05
-
-
300.00
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
255.04
37.50
22.50
6.58
9.72
42.00
18.00
102.72
4.15
0.11
0.11
0.05
83.40
34.75
14.95
-
9.26
20.34
11.12
-
-
0.11
0.11
-
179
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Mr. Mayank Jain
Mr. Kashmir Rathour
Mr. Pallab Banerjee
Expenses incurred on behalf of the Company
Mr. Uma Shankar
Mr. Sandeep Sabharwal
Mr. Raghav Garg
Mr. Vinod Vaish
Mr. Mayank Jain
Mr. Narendra Somani
Mr. Shailesh Kumar
Mr. Pallab Banerjee
Directors sitting Fees:
Mr. Deepak Seth
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
0.14
0.16
-
For the year ended
March 31, 2022
0.14
-
2.52
13.32
-
-
6.00
14.43
5.31
1.85
0.60
4.71
6.04
13.36
13.88
-
-
1.58
-
0.50
d) Terms and conditions of transactions with related parties
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.
e) Personal Guarantee given by Mr. Deepak Seth (Promoter Director) and Mr. Pulkit Seth (Managing Director) against the
Borrowings (refer note no. 21)
f)
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.
g) During the FY 2021-22, Loan of USD 6.60 Lakhs in Pearl Global Fareast Limited, Hongkong, has been converted into USD
6.60 Lakhs ordinary equity shares of USD 1.00 each of the Pearl Global Fareast Limited,
47 DISCLOSURES PURSUANT TO REGULATION 34 OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS
AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND SECTION 186 OF THE COMPANIES ACT, 2013.
Particulars
(a) Loans to subsidiaries
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
For the year ended
March 31, 2022
March 31, 2021
Loan to wholly owned subsidiary: Pearl Global Fareast Limited
Principal Balance as at the year end
Maximum amount outstanding at any time during the year*
(Pearl Global Fareast Limited has utilised the loan for meeting operating
and working capital requirements. It is converted into equity and carried an
average rate of interest at 6% p.a till the date of conversion (2020-21: 6.5%)
Investments made are given under the respective heads (Refer Note No. 8)
(b)
(c) Corporate guarantees given are disclosed in Note 46
-
486.10
485.10
485.10
11,761.04
20,468.70
11,578.00
24,541.03
*During the FY 2021-22, Loan of USD 6.60 Lakhs in Pearl Global Fareast Limited, Hongkong, has been converted into USD 6.60
Lakhs ordinary equity shares of USD 1.00 each of the PGFE.
180
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
48 EVENT OCCURING AFTER BALANCE SHEET DATE
(a)
Interim Dividend :
Particulars
(i) Declared for the year:
(All amounts are in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
Interim dividend declared on May 25, 2022 for the financial year 2021-
22: 5 per share (2020-21: ` Nil per share)
( ` 5 on 21,663,937 equity shares)
1,083.20
-
(b) 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.
49 LEASES
a)
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.
Right-of-use assets: movements in carrying value of assets
Gross Block As at March 31, 2020
Add: Additions during the year
Less: (Disposals) / adjustments during the year
Gross Block As at March 31, 2021
Add: Additions during the year
Less: (Disposals) / adjustments during the year
Gross Block As at March 31, 2022
Accumulated Depriciation :
As at April 1, 2020
Add: Depreciation charge for the year
Less: (Disposals) / adjustments during the year
As at March 31, 2021
Add: Depreciation charge for the year
Less: (Disposals) / adjustments during the year
As at March 31, 2022
Net Block :
As at March 31, 2022
As at March 31, 2021
In 2021-22, there were no impairment charges recorded for right-of-use assets.
Leases: movements in carrying value of recognised liabilities
As at April 1, 2020
Add: Additions during the year
Add: Interest expense on lease liabilities
Less: Repayment of lease liabilities
As at March 31, 2021
Add: Additions during the year
Add: Interest expense on lease liabilities
Less: (Disposals) / adjustments during the year
Less: Repayment of lease liabilities
As at March 31, 2022
Non-current lease liabilities
Current lease liabilities
Total lease liabilities
Buildings
2,965.05
452.56
327.58
3,745.19
-
(457.48)
3,287.71
350.70
491.22
-
841.92
485.69
(211.37)
1,116.24
2,171.47
2,903.27
3,049.75
452.56
304.66
(589.23)
3,217.75
-
270.85
(305.79)
(643.97)
2,538.85
2,147.63
391.22
2,538.85
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 flows from
financing activities includes the payment of interest and the principal portion of lease liabilities.
181
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Leases committed and not yet commenced: There are no leases commited which have not yet commenced as on reporting date.
The Ministry of Corporate Affairs vide notification dated July 24, 2020, issued an amendment to Ind AS 116, ‘Leases’, by
inserting a practical expedient w.r.t “Covid-19-Related Rent Concessions” effective from the period beginning on or after
April 1, 2020. Pursuant to the amendment, the Company has opted to apply the practical expedient by accounting for the
rent concessions of ` 148.40 Lakhs during the year ended March 31, 2022 in the Standalone Statement of Profit and Loss.
The rent concessions are recognised in the period in which formal consents have been received.
Company as a Lessor
The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a lessor.
The Company accounted for its leases in accordance with Ind AS 116 from the date of initial application. The Company
does not have any significant impact on account of sub-lease on the application of this standard.
The Company has given its building space, lying under property, plant and equipments, on operating lease through operating
lease arrangements. Income from operating leases is recognised as revenue on a straight-line basis over the lease term
Lease income of ` 769.38 Lakhs (March 31, 2021: ` 770.91 Lakhs) has been recognised and included under Other Income.
(Refer Note No. 28)
50 RATIO ANALYSIS
Description
Numerator
Denominator
March 31, 2022 March 31, 2021 % change Reason for variance
(All amounts are in ` Lakhs, unless otherwise stated)
Current ratio (in
times)
Debt- Equity
Ratio (in times)
Debt Service
Coverage ratio
(in times)
Return on Equity
ratio
(in %)
Inventory
Turnover ratio
(in times)
Current Assets
Total Debt
(excluding lease
liabilities in
debt)
Total Debt
(including lease
liabilities in
debt )
Earnings
available for
debt service
(Refer note (a)
below)
Net Profits
after taxes –
Preference
Dividend
Revenue
Current
Liabilities
Shareholder’s
Equity
Shareholder’s
Equity
Debt Service
(Refer note (b)
below)
Average
Shareholder’s
Equity
Average
Inventory
1.40
0.76
1.33
4.75%
0.69
10.45%
0.83
0.79
5.47%
1.34
0.67
99.21% Improvement in
profitability helped to
improve DSCR.
8.26%
0.25% 3207.80% Improvement in
profitability led to
better Return on
Equity.
2.42
3.37
(28.37%) Due to change in
sales mix led to
increase in inventory
levels.
182
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
Description
Numerator
Denominator
March 31, 2022 March 31, 2021 % change Reason for variance
(All amounts are in ` Lakhs, unless otherwise stated)
Trade Receivable
Turnover Ratio
(in times)
Revenue
Trade Payable
Turnover Ratio
(in times)
Net Capital
Turnover Ratio
(in times)
Purchases
of goods and
services
Revenue
Average Trade
Receivable:
Average Trade
Payables
Working capital
(Refer note (c)
below)
Net Profit ratio
(in %)
Net Profit after
tax.
Revenue
Return on Capital
Employed (in %)
Earnings before
interest and
taxes
Capital
Employed (Refer
note (d) below)
Earnings before
interest and
taxes
Capital
Employed (Refer
note (e) below)
Return on
Investment (in %)
Income from
Investments
Average Cost of
Investments
6.60
6.09
8.40%
3.02
3.62
(16.51%)
6.84
9.34
(26.78%) Due to change in
sales mix led to
increase in working
capital employed.
3.15%
0.10% 2907.23% Change in Sales
mix and improved
margins led to
increase in profits.
8.56%
1.36%
529.14% Improvement in
profitability led to
higher Return on
Capital Employed.
8.65%
1.83%
373.59% Improvement in
profitability led to
higher Return on
Capital Employed.
4.89%
2.22%
120.07% Increased income on
account of dividend
and fair value gain
on investments
has resulted in the
improvement in the
ratio.
Notes:
a) Net Profit after taxes + Non-cash operating expenses like depreciation and other amortisations + Interest + other
adjustments like loss on sale of Fixed assets etc. “Net Profit after tax” means reported amount of “Profit / (loss) for the
period” and it does not include items of other comprehensive income.
b)
Interest, Lease Payments and Principal Repayments of long term debt
c) Current assets – Current liabilities
d) Tangible Net Worth + Total Debt(excluding lease liabilities in debt) + Deferred Tax Liability
e) Tangible Net Worth + Total Debt(including lease liabilities in debt) + Deferred Tax Liability
183
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22 NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
51 Pursuant to transfer pricing legislations under the Income-tax Act, 1961, the Company is required to use specified methods
for computing arm’s length price in relation to specified international transactions with its associated enterprises. Further,
the Company is required to maintain prescribed information and documents in relation to such transactions. The appropriate
method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions
performed and other factors, which have been prescribed.The Company is in the process of updating its transfer pricing
documentation for the current financial year. Based on the preliminary assessment, the management is of the view that the
update would not have a material impact on the tax expense recorded in these financial statements. Accordingly, these financial
statements do not include any adjustments for the transfer pricing implications, if any.
52 The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial sta
tements, including but not limited to its assessment of liquidity and going concern assumption, the recoverability of recoverability
of carrying amounts of financial and non-financial assets. The Company has carried out this assessment based on available
internal and external sources of information upto the date of approval of these financial statements and believes that the impact
of COVID-19 is not material to these standalone financial statements and expects to recover the carrying amount of its assets.
The Company will continue to monitor future economic conditions and its consequent impact on the business operations, given
the uncertain nature of the pandemic.
53 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entity identified by or on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
54 Disclosure of transactions with struck off companies
The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956 during the financial years.
55
A) No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended
Schedule III:
184
PEARL GLOBAL INDUSTRIES LIMITED NOTES
to standalone financial statements for the year ended March 31, 2022 (Contd.)
(a) Crypto Currency or Virtual Currency
(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
(c) Registration of charges or satisfaction with Registrar of Companies except charges mentioned in note 21(ii) of the
standalone financial statements.
(d) Relating to borrowed funds:
i) Wilful defaulter
ii) Utilisation of borrowed funds & share premium
iii) Borrowings obtained on the basis of security of current assets
iv) Discrepancy in utilisation of borrowings
56 Figures have been rounded off to the nearest Lakhs upto two decimal places except otherwise stated.
For & on behalf of Board of Directors of Pearl Global Industries Limited
(Pallab Banerjee)
Managing Director
DIN 07193749
(Pulkit Seth)
Vice-Chairman
DIN 00003044
Place of Signature: Gurugram
Date: May 25, 2022
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
185
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
INDEPENDENT AUDITOR’S REPORT
To,
The Members of
Pearl Global Industries Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying consolidated financial
statements of Pearl Global Industries Limited (hereinafter
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, 2022, 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, 2022, the consolidated
profit, consolidated changes in equity and its consolidated
cash flows for the year ended on that date.
Basis for Opinion
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
further
described in the Auditor’s Responsibilities for the Audit
those Standards are
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.
Key Audit Matters
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, 2022. 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.
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.
Key Audit Matter
Adequacy and completeness of disclosures of Related
Party Transactions
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:
How our audit addressed the Key Audit Matter
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.
186
PEARL GLOBAL INDUSTRIES LIMITED INDEPENDENT AUDITOR’S REPORT (Contd.)
Key Audit Matter
-
the significance of transactions with related parties
during the year ended March 31, 2022; 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.
How our audit addressed the Key Audit Matter
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.
Information other than Consolidated Financial Statements
and Auditor’s Reports thereon
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 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.
Responsibility of Management and Those Charged with
Governance for the Consolidated Financial Statements
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
187
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22 INDEPENDENT AUDITOR’S REPORT (Contd.)
their financial reporting process of the Group.
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
•
•
Identify and assess the risks of material misstatement
of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Holding
Company and Subsidiaries which are incorporated
in India has adequate internal financial controls with
reference to the financial statements in place and the
operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
ability of the Group to continue as a going concern.
If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
•
•
•
•
188
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, 2022 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
PEARL GLOBAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR’S REPORT (Contd.)
in our report because the adverse consequences of
doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Other Matters
(a) We did not audit the financial statements of four
subsidiaries included in the consolidated financial
statements, whose financial statements
reflect
total assets (before eliminating of inter-company
transaction of ` 22,521.82 lakh) of ` 130,700.99 lakh
as at March 31,2022, total revenues (before eliminating
of inter-company transaction of ` 108,125.74 lakh)
` 315,911.01 lakh, total net profit after tax (before
eliminating of inter-company transaction of ` (2.31)
lakh) of ` 4,241.04 lakh and total comprehensive income
(before eliminating of inter-company transaction of
` 16.19 lakh ) of ` 5404.49 lakh for the year ended
March 31, 2022 respectively and total net cash inflow
of ` 2,476.71 lakh for the year ended March 31, 2022,
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 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.
Our opinion on the consolidated financial statement 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.
(c) The Consolidated financial statements also include
the financial statements of one foreign subsidiary
whose financial statements reflect total assets (before
eliminating of inter-company transaction of ` Nil)
` 259.97 lakh as at March 31,2022, total revenues
(before eliminating of inter-company transaction of
` Nil) of ` 351.88 lakh, total net profit after tax (before
eliminating of inter-company transaction of ` Nil)
of ` 2.83 lakh & total comprehensive income (before
eliminating of inter-company transaction of ` Nil)
of ` 2.88 lakh for the year ended March 31,2022 and
net cash inflow of ` 14.73 lakh for the year ended
March 31,2022, as considered in the consolidated
financial statements, which have not been audited.
These financial statements have been certified by
the respective Management and furnished to us by
Holding Company’s Management. Our conclusion,
in so far as it relates to the amounts included in
respect of aforesaid subsidiary, is based solely on
such financial statements. In our view and according
to the information and explanations given to us by
the Holding Company’s Management, these financial
statements are not material to the Group.
Our conclusion is not modified in respect of this matter
with respect to our reliance on these unaudited financial
statements of aforesaid subsidiary, as certified by the
respective Management
(d) The consolidated financial statements do not include
the financial statement of one subsidiary for the year
ended March 31, 2022, as the same has gone into
voluntary liquidation and due to the reason as explained
in Note no. 9(d) of the consolidated financial statement.
According to the information and explanations given
to us by the Management, financial statement of this
subsidiary does not have any material impact on the
consolidated statement 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.
189
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
INDEPENDENT AUDITOR’S REPORT (Contd.)
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. With respect to the matters specified in the paragraph
3(xxi) and 4 of the Companies (Auditor’s Report) Order,
2020 (“the Order”/”CARO”), issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, to be included in the Auditor’s
report, according to the information and explanations
given to us, and based on the CARO reports issued by
us for the Holding Company and CARO reports issued
by respective statutory auditors of the subsidiaries
which have been included in the consolidated financial
statements of the Group & to which reporting under
CARO is applicable, we report that there are no
qualifications and adverse remarks in those CARO
reports.
2. 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:
I. 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.
II.
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.
III. 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.
IV.
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.
V. On the basis of the written representations
received from the directors of the Holding
Company as on March 31, 2022, taken on record
190
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, 2022, from being appointed as a director in
terms of Section 164 (2) of the Act.
VI. 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 Annexure – A.
VII. 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:
a) The consolidated financial statements
disclose impact of pending litigations on the
consolidated financial position of the Group
- Refer Note No. 45 of the Consolidated
financial statements.
b) The Group did not have any material
foreseeable losses on long-term contracts
including derivative contracts during the
year ended March 31, 2022.
c) 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, 2022.
d)
i.
The respective Managements of the
Holding Company and its subsidiaries
incorporated in India whose financial
statements have been audited in the
act have represented to us and the
other auditors of such subsidiaries
have reported that, to the best of its
knowledge and belief, as disclosed
in the Note 51 to the accounts, no
funds
(which are material either
individually or in the aggregate) have
PEARL GLOBAL INDUSTRIES LIMITED
INDEPENDENT AUDITOR’S REPORT (Contd.)
been advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind
of funds) by the Holding Company
or any of such subsidiaries to or in
any other person or entity, including
foreign entity (“Intermediaries”), with
the understanding, whether recorded
the
in writing or otherwise,
Intermediary shall, directly or indirectly
lend or invest in other persons or entities
identified in any manner whatsoever by
or on behalf of the Holding Company
or any of such subsidiaries (“Ultimate
Beneficiaries”)
any
or
guarantee, security or the like on behalf
of the Ultimate Beneficiaries;
provide
that
ii.
The respective Managements of the
Holding Company and its subsidiaries
incorporated in India have represented,
that, to the best of its knowledge and
belief, as disclosed in the Note 51 to the
accounts, no funds (which are material
either individually or in the aggregate)
have been received by the Holding
Company or any of such subsidiaries
from any person or entity, including
foreign entity (“Funding Parties”), with
the understanding, whether recorded
in writing or otherwise, that the Holding
Company or any of such subsidiaries
lend or
indirectly,
shall, directly or
invest
in other persons or entities
identified in any manner whatsoever
by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf
of the Ultimate Beneficiaries; and
iii. Based on such audit procedures that
has been considered reasonable and
the circumstances,
appropriate
in
nothing has come to our notice that
has caused us to believe that the
representations under sub-clause (i)
and (ii) of Rule 11(e), as provided under
(i) & (ii) above, contain any material
misstatement.
e) As stated in note 49 to the standalone
financial statements, the Board of Directors
of the Holding Company have declared an
interim dividend for the financial year 2021-
22 subsequent to the balance sheet date.
The same has not been paid as on the date
of audit report. The dividend declared is in
accordance with section 123 of the Act to the
extent it applies to declaration of dividend.
Further,
the
subsidiaries
companies
incorporated in India, consolidated in the
group, have not declared any dividend during
the year.
3. 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, 2022, 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.
For B.R. Gupta & Co.
Chartered Accountants,
Firm Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number 073696
UDIN : 22073696AMMSRF8906
Place of Signature : New Delhi
Date: 25 May, 2022
191
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
CONSOLIDATED BALANCE SHEET
as at March 31, 2022
Particulars
Note No.
(Amount in ` Lakhs, unless otherwise stated)
As At
March 31, 2021
As At
March 31, 2022
I.
1.
2.
II.
1.
2.
ASSETS
Non-current assets
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Property, plant and equipment
Capital work in progress
Right of use assets
Investment properties
Goodwill
Other Intangible assets
Financial assets
(i)
(ii)
(iii) Other financial assets
(h) Non current tax assets (net)
(i)
(j)
Total Non-current assets
CURRENT ASSETS
(a)
(b)
Deferred Tax Assets (net)
Other non current assets
Investments
Loans
Investments
Trade receivables
Inventories
Financial assets
(i)
(ii)
(iii) Cash and cash equivalents
(iv)
(v)
(vi) Other financial assets
Other current assets
Equity share capital
Other equity
(c)
Total current assets
Total assets
Equity and liabilities
Equity
(a)
(b)
Equity attributable to equity shareholders
Non - controlling interest
Total equity
Liabilities
Non- current liabilities
(a)
Financial liabilities
Borrowings
(i)
Lease Liabilities
(ia)
(ii)
Others financial liabilities
Provisions
Deferred tax liabilities (net)
Other non current liabilities
(b)
(c)
(d)
Total non- current liabilities
Current liabilities
(a)
Bank balances other than cash and cash equivalents
Loans
4
5
48
6
7
8
9
10
11
13
12
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
25,815.42
1,521.50
11,168.15
5,904.48
1,800.78
72.06
4,985.82
125.01
1,096.34
601.00
89.81
210.77
53,391.14
53,958.18
532.26
36,662.31
11,685.07
3,292.39
3,459.46
590.85
14,490.19
124,670.71
178,061.85
2,166.39
57,727.53
59,893.92
1,593.33
61,487.25
12,382.81
7,161.40
240.92
2,427.56
256.64
3,006.07
25,475.40
44,031.37
883.75
663.99
43,204.80
904.09
948.52
244.81
217.87
91,099.20
178,061.85
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
771.37
466.99
209.62
53,317.40
27,876.97
754.38
24,217.21
9,471.34
2,233.21
1,707.73
89.24
9,731.09
76,081.17
129,398.57
2,166.39
49,555.07
51,721.47
1,293.82
53,015.28
12,462.33
6,531.37
137.28
2,310.12
-
3,013.35
24,454.45
24,120.63
863.57
481.71
24,195.13
1,326.74
738.57
109.04
93.44
51,928.84
129,398.57
Financial liabilities
Borrowings
(i)
Lease Liabilities
(ia)
Trade payables
(ii)
Total outstanding due of micro enterprises and small enterprises
Total outstanding due of creditors other than micro enterprises and small
enterprises
(iii) Other financial liabilities
Other current liabilities
Provisions
Current tax liabilities (net)
(b)
(c)
(d)
Total current liabilities
Total equity and liabilities
Summary of Significant Accounting Policies
The accompanying notes form an integral part of these financial statements
As per our Report of even date attached
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
Place of Signature: New Delhi
Date: May 25, 2022
Place of Signature: Gurugram
Date: May 25, 2022
192
PEARL GLOBAL INDUSTRIES LIMITED
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
for the year ended March 31, 2022
Particulars
Note No.
(Amount in ` Lakhs, unless otherwise stated)
For the year ended March
31, 2021
For the year ended
March 31, 2022
I
II
III
IV
V
VI
IX
X
Cost of materials consumed
Purchases of stock-in-trade
Changes in inventories of finished goods, work in progress and stock in trade
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Income
Revenue from operations
Other income
Total income (I+II)
Expenses
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Total expenses
Profit/ (loss) before exceptional items and tax (I-II)
Exceptional Items
Profit/ (loss) before tax (III-IV)
Tax expense:
(a)
(b)
(c)
Profit/(loss) for the year (V-VI)
Current tax
Deferred tax
Adjustment of tax relating to earlier periods
VII
VIII Other comprehensive income
IX
X
(A)
Profit/(loss) for the year (VII-VIII)
Other comprehensive income
(i)
Items that will not be reclassified to profit or loss
(a)
Re-measurement gains/ (losses) on defined benefit plans
Income tax on items that will not be reclassified to profit or loss
(ii)
(B)
(i)
Items that will be reclassified to of profit or loss
(a)
(b)
(c)
Income tax on items that will be reclassified to profit and loss
Foreign exchange translation reserve
Fair valuation of investment in mutual fund
Net movement in effective portion of cash flow hedge reserve
(ii)
Other comprehensive income for the year, net of tax
Total comprehensive income for the year, net of tax
Profit Attribituable to:
Equity shareholders
Non-controlling interests
Other comprehensive income attributable to:
Equity shareholders
Non-controlling interests
Total comprehensive income attributable to:
Equity shareholders
Non-controlling interests
Earnings per share: (Face value ` 10 per share)
1)
2)
Basic (amount in `)
Diluted (amount in `)
27
28
29
30
31
32
33
34
35
36
12
37
38
3
271,352.90
3,345.94
274,698.84
116,530.95
40,790.23
(6,258.87)
45,862.10
4,660.37
4,833.68
60,370.37
266,788.84
7,910.00
(671.82)
8,581.82
1,074.08
496.86
-
7,010.88
(100.97)
(20.48)
1,242.11
(28.98)
419.03
(105.46)
1,405.26
8,416.14
6,814.64
196.24
1,357.87
47.39
8,172.51
243.63
31.46
31.46
Summary of Significant Accounting Policies
The accompanying notes form an integral part of these financial statements
As per our Report of even date attached
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
Place of Signature: New Delhi
Date: May 25, 2022
Place of Signature: Gurugram
Date: May 25, 2022
149,092.65
2,350.49
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
(129.75)
(1,265.31)
1,135.56
372.04
(995.74)
10.94
1,748.32
(48.22)
(23.22)
(825.45)
173.25
979.45
(342.72)
(86.91)
1,661.41
1,727.11
21.21
(63.07)
(23.84)
1,664.04
(2.63)
7.97
7.97
193
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
CONSOLIDATED STATEMENT OF CASH FLOW
for the year ended March 31, 2022
Particulars
Cash Flows From Operating Activities
Profit before exceptional items and tax
Adjustments to reconcile profit before tax to net cash flows:
Profit on sale of current investment - Mutual Fund
Rental Income
Interest Income
Interest Paid and other borrowing cost
Depreciation and amortisation
Unwinding of discount on security deposit - Expense
Sundry balances written back
Provision written back
Gain on lease modification
Allowance for bad and doubtful debts and Advances
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
Foreign exchange translation
Operating profit before working capital changes
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
Cash Generated From Operations
Direct Tax paid (Net of Refunds)
Cash flow before exceptional items
Exceptional items
Net Cash Inflow From/(Used In) Operating Activities
( A )
Cash Flows From Investing Activities
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
(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
194
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
8,581.82
1,135.56
(16.34)
(742.30)
(310.44)
3,484.16
4,833.68
14.08
(297.41)
(204.11)
(50.38)
469.99
2.93
(1.00)
(16.44)
(26.72)
(209.27)
3.13
28.98
662.27
16,206.66
144.28
(18.42)
(26,081.21)
(12,670.09)
(475.39)
(4,912.39)
120.09
117.44
(6.28)
19,489.35
22.02
112.14
242.04
(7,709.76)
(768.26)
(8,478.02)
(671.82)
(9,149.84)
(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)
(335.03)
7,264.88
128.70
184.47
(1,489.64)
(2,510.50)
3.74
1,545.15
(72.91)
230.40
16.44
6,703.82
(799.43)
(7.58)
(118.79)
11,078.73
(352.03)
10,726.70
(1,265.31)
9,461.39
(8,320.85)
(2,079.50)
168.59
3,179.96
-
714.60
(48.52)
14.12
(110.84)
315.04
(119.75)
2,040.43
(1,751.73)
(1,070.70)
284.18
40.85
(1,091.17)
(331.97)
550.00
(9.20)
70.16
173.53
(1,491.07)
190.02
279.82
23.51
(67.06)
366.47
PEARL GLOBAL INDUSTRIES LIMITED STANDALONE STATEMENT OF CASH FLOW
for the year ended March 31, 2022 (Contd.)
Particulars
Rental Income
Net Cash From/ (Used In) Investing Activities
Cash Flows From Financing Activities
Increase/ (Decrease) in Long Term Borrowings
Lease Rental paid
Increase/ (Decrease) in Short Term Borrowings
Share application money received from NCI
Interest paid (net)
Net cash inflow from/(used in) Financing Activities
Net Increase (Decrease) In Cash And Cash Equivalents (A+B+C)
Opening Balance of Cash and Cash Equivalents
Total Cash And Cash Equivalent (Note 17)
Components Of Cash And Cash Equivalents
Cash, Cheque/drafts on hand
With banks - on current account
With banks - on deposits with banks
Total Cash and Cash Equivalent ((Note 17)
( B )
( C )
Note :
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
770.91
(2,604.70)
For the year ended
March 31, 2022
742.30
(3,963.17)
(61.14)
(2,011.72)
19,910.75
55.89
(2,567.04)
15,326.74
2,213.73
9,471.34
11,685.07
1,013.27
10,356.64
315.15
11,685.07
3,839.43
(1,708.94)
(5,724.69)
-
(2,600.04)
(6,194.24)
662.45
8,808.89
9,471.34
499.55
8,794.19
177.60
9,471.34
(a) The above Consolidated statement of Cash Flows has been prepared under the Indirect Method as set out in IND AS 7
‘Statement of Cash Flows’.
b)
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.
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
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
Place of Signature: New Delhi
Date: May 25, 2022
Place of Signature: Gurugram
Date: May 25, 2022
195
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended March 31, 2022
(Amount in ` Lakhs, unless otherwise stated)
A. Equity Share Capital
As at April 1, 2020
Changes during the year
As at March 31, 2021
Changes during the year
As at March 31, 2022
B. Other Equity
Particulars
Reserves and Surplus
Other Comprehensive Income
2,166.39
-
2,166.39
-
2,166.39
General
Reserve
Security
Premium
Capital
Redem
ption
Reserve
Amalga
mation
Reserve
Retained
Earnings
Effective
Portion of
Cash Flow
Hedge
Currency
Transa
lation
Reserve
Total
Other
Equity
Non-
controlling
interest
Total
Equity
Change in
investment
through
other
compre
hensive
income
Balance as at April 1, 2020
4,204.36 17,103.90
95.00
625.95 21,989.10
(105.34)
(645.23) 4,623.28 47,891.01
1,296.44 49,187.47
Profit / (loss) for the year
Remeasurement of the benefit
plan, net of tax effect
Other Comprehensive Income
Total Comprehensive Income
for the year
Dividend
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,727.11
(47.61)
-
-
-
-
-
-
1,727.11
21.21
1,748.32
(47.61)
-
(47.61)
-
(204.19)
(636.73)
825.45
(15.47)
(23.84)
(39.30)
1,679.50
(204.19)
(636.73)
825.45
1,664.04
(2.63)
1,661.41
-
-
-
-
-
-
-
Balance as at March 31, 2021
4,204.36 17,103.90
95.00
625.95 23,668.60
(309.53) (1,281.96) 5,448.73 49,555.07
1,293.82 50,848.89
Profit / (loss) for the year
Adjustments during the year
Remeasurement of the benefit
plan, net of tax effect
Share Application Money
Other Comprehensive Income
Total Comprehensive Income
for the year
Dividend
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,814.64
-
-
-
6,814.64
196.24
7,010.88
-
377.43
1,273.47 (1,650.90)
-
-
-
(94.81)
-
-
-
-
-
-
-
(94.81)
(26.64)
(121.45)
-
-
55.88
55.88
(103.01)
313.57
1,242.11
1,452.67
74.03
1,526.71
6,719.83
274.42
1,587.04
(408.79)
8,172.50
299.51
8,472.02
-
-
-
-
-
-
-
Balance as at March 31, 2022
4,204.36 17,103.90
95.00
625.95 30,388.43
(35.11)
305.08 5,039.94 57,727.53
1,593.33 59,320.86
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
For & on behalf of Board of Directors of Pearl Global Industries Limited
For B.R. Gupta & Co.
Chartered Accountants
Firm’s Registration Number 008352N
(Deepak Agarwal)
Partner
Membership Number: 073696
(Pallab Banerjee)
Managing Director
DIN 07193749
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Pulkit Seth)
Vice-Chairman
DIN 00003044
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
Place of Signature: New Delhi
Date: May 25, 2022
Place of Signature: Gurugram
Date: May 25, 2022
196
PEARL GLOBAL INDUSTRIES LIMITED Notes
to consolidated financial statements for the year ended March 31, 2022
1 CORPORATE INFORMATION
Pearl Global Industries Limited is a public limited company
domiciled in India and incorporated under the provisions of
the Companies Act,1956, and now under the Companies
its subsidiaries
Act, 2013. The Company along with
(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 May 25, 2022.
The Company, its subsidiaries ( jointly referred to as the
‘Group’ herein under) considered in these consolidated
financial statements includes:
Name of Company
Country of
incorporation
Principal activities
Porportion (%) of equity interest
Subsidiaries
Pearl Global Industries
Limited
Pearl Global Kausal Vikas
Limited
SBUYS E-Commerce Limited
Pearl Global Far East Limited
Pearl Global (HK) Limited
Norp Knit Industries Limited
Pearl Global USA Inc.
India
India
Manufacturing and trading
of garments
Skill development
Online Trading of garments
Trading of garments
Trading of garments
India
Hong Kong
Hong Kong
Bangladesh Manufacturing and trading
of garments
Trading and marketing of
garments
USA
As At
March 31, 2022
As At
March 31, 2021
Holding Company
Holding Company
100.00
100.00
100.00
100.00
99.99
100.00
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, 2022. However, the comparative consolidated financial statements as at March 31, 2021
includes the financial statements of Pearl Apparel Fashions limited.
2 BASIS OF PREPARATION AND MEASUREMENT
Statement of Compliance: The Financial Statements
are prepared on an accrual basis under historical cost
Convention except for certain financial instruments which
are measured at fair value. These financial statements have
been prepared in accordance with the Indian Accounting
Standards (Ind AS) as prescribed under Section 133 of
the Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended and
other relevant provisions of the Companies Act, 2013, as
applicable.
The accounting policies are applied consistently to all the
periods presented in the financial statements.
Basis of Preparation and presentation: The financial
statements are prepared under the historical cost convention
except for certain financial assets and liabilities (including
derivative financial instruments) that are measured at fair
value or amortised cost.
All assets and liabilities have been classified as current or
noncurrent according to the Group’s operating cycle and
other criteria set out in the Act. Based on the nature of
products and the time between the acquisition of assets
for processing and their realisation in cash and cash
equivalents, the Group has ascertained its operating cycle
as twelve months for the purpose of current non-current
classification of assets and liabilities.
Going Concern
The board of directors have considered the financial position
of the Group at 31st March 2022 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.
Prior financial year reclassification of current maturities of
long term borrowings:
During the current financial year, to comply with the
requirements of admendments made in Schedule III to
the Companies Act, 2013 which is effective from financial
197
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22 NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
year commencing on or after April 01, 2021, the Group
reclassified current maturities of long term borrowings from
“Other Financial Liabillty” to “Short Term Borrowings”. This
reclassification more appropriately reflects the borrowings
of the Group. Prior financial year comparatives have been
restated to align to the current financial year approach.
The impact of this reclassification on prior financial year
amounts has been a reduction in Other financial liability by
` 4,129.99 Lakhs and corresponing increase in short term
borrowings.
Basis of Consolidation:-
The Consolidated Financial Statements have been prepared
on the following basis:-
i)
The consolidation financial statements of the Group
and its subsidiary companies have been prepared in
accordance with the Ind AS 110 “Consolidated financial
statements”, 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
unrealised 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 Group as
at the date of acquisition of stake is recognised in
financial statements as Goodwill or Capital Reserve, as
the case may be.
iii) Non-controlling
in
interests
the net assets of
consolidated subsidiaries is identified and presented
in the consolidated Balance Sheet separately within
equity as at reporting date.
Non-controlling
consolidated subsidiaries consists of:
interests
in
the net assets of
-
The amount of equity attributable to Non-
interests at the date on which
controlling
investment in a subsidiary is made; and
198
-
The Non-controlling interests share of movements
in equity since the date parent subsidiary
relationship came into exitence. The profit and
other comprehensive income attributable to Non-
controlling interestsof subsidiaries are shown
separately in the consolidated statement of profit
and loss, consolidated statement of changes in
equity and balance sheet respectively.
iv) The Consolidated Financial Statements are presented,
to the extent possible, in the same format as adopted
by the Holding Group for
individual financial
statements.
its
v) Translation of Financial Statements of Foreign
Operations
-
-
-
In view of Ind As-“21” ‘The effects of Changes in
Foreign Exchange Rates’, the operations of all the
foreign subsidiaries are identified as non integral
operations of the Group in the current year and
translated into Indian Rupee (`).
The Assets and Liabilities of Foreign operations,
including Goodwill/ Capital Reserve arising on
consolidation, are translated in Indian Rupee (`)
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 (`) at yearly average currency
exchange rate, of the respective years.
Foreign
exchange differences arising on
translation of “Non-integral Foreign Operations”
are recognised 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.
Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. On March 23, 2022,
MCA amended the Companies (Indian Accounting
Standards) Amendment Rules, 2022, applicable from
April 1, 2022, as below:
a)
Ind AS 103 – Reference to Conceptual Framework
The amendments specify that to qualify for recognition
as part of applying the acquisition method, the
identifiable assets acquired and liabilities assumed
must meet the definitions of assets and liabilities in the
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Conceptual Framework for Financial Reporting under
Indian Accounting Standards (Conceptual Framework)
issued by the Institute of Chartered Accountants of
India at the acquisition date. These changes do not
significantly change the requirements of Ind AS 103.
The Group does not expect the amendment to have
any significant impact in its financial statements.
b)
Ind AS 16 – Proceeds before intended use
The amendments mainly prohibit an entity from
deducting from the cost of property, plant and
equipment amounts received from selling
items
produced while the Group is preparing the asset for
its intended use. Instead, an entity will recognise
such sales proceeds and related cost in profit or loss.
The Group does not expect the amendments to have
any impact in its recognition of its property, plant and
equipment in its financial statements.
c)
Ind AS 37 – Onerous Contracts - Costs of Fulfilling a
Contract
The amendments specify that that the ‘cost of fulfilling’
a contract comprises the ‘costs that relate directly to
the contract’. Costs that relate directly to a contract can
either be incremental costs of fulfilling that contract
(examples would be direct labour, materials) or an
allocation of other costs that relate directly to fulfilling
contracts. The amendment is essentially a clarification
and the Group does not expect the amendment to have
any significant impact in its financial statements.
d)
Ind AS 109 – Annual Improvements to Ind AS (2021)
The amendment clarifies which fees an entity includes
when it applies the ‘10 percent’ test of Ind AS 109 in
assessing whether to derecognise a financial liability.
The Group does not expect the amendment to have
any significant impact in its financial statements.
e)
Ind AS 116 – Annual Improvements to Ind AS (2021)
The amendments remove the
illustration of the
reimbursement of leasehold improvements by the
lessor in order to resolve any potential confusion
regarding the treatment of lease incentives that might
arise because of how lease incentives were described
in that illustration. The Group does not expect the
amendment to have any significant impact in its
financial statements.
3 SIGNIFICANT ACCOUNTING POLICIES
a) Significant accounting judgements, estimates and
assumptions
In preparing these financial statements, Management
has made judgements, estimates and assumptions
that affect the application of the Group’s accounting
policies and the reported amounts of assets, liabilities,
income and expenses. Management believes that
the estimates used in the preparation of the financial
statements are prudent and reasonable. Actual
results may differ from these estimates. Estimates
and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are
recognised prospectively.
Use of Estimates and Judgements
The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Group based
its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances
and assumptions about future developments, however,
may change due to market changes or circumstances
arising that are beyond the control of the Group. Such
changes are reflected in the assumptions when they
occur. Also, the Group has made certain judgements in
applying accounting policies which have an effect on
amounts recognised in the financial statements.
i)
Income taxes
in
judgment
The Group is subject to income tax laws as
applicable
is
India. Significant
required in determining provision for income taxes.
There are many transactions and calculations for
which the ultimate tax determination is uncertain
during the ordinary course of business. The Group
recognises liabilities for anticipated tax issues
based on estimates of whether additional taxes
will be due. Where the final tax outcome of these
matters is different from the amounts that were
initially recorded, such differences will impact
the income tax and deferred tax provisions in
the period in which such determination is made.
Where tax positions are uncertain, accruals
are recorded within income tax liabilities for
management’s best estimate of the ultimate
liability that is expected to arise based on the
specific circumstances and the Group’s historical
experience. Factors that may have an impact on
current and deferred taxes include changes in tax
laws, regulations or rates, changing interpretations
of existing tax laws or regulations, future levels of
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NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
research and development spending and changes
in pre-tax earnings.
ii) Contingencies
Contingent Liabilities may arise from the ordinary
course of business in relation to claims against
the Group, including legal and other claims.
By virtue of their nature, contingencies will be
resolved only when one or more uncertain future
events occur or fail to occur. The assessment
of the existence, and potential quantum, of
contingencies inherently involves the exercise of
significant judgements and the use of estimates
regarding the outcome of future events.
iii) Recoverability of deferred taxes
In assessing the recoverability of deferred tax
assets, management considers whether it is
probable that taxable profit will be available
against which the losses can be utilised. The
ultimate realisation of deferred tax assets is
dependent upon the generation of future taxable
income during the periods in which the temporary
differences become deductible. Management
considers the projected future taxable income
and tax planning strategies
in making this
assessment.
iv) Defined benefit plans
The present value of the gratuity and compensated
absences are determined using actuarial
involves
valuations. An actuarial valuation
making various assumptions that may differ
from actual developments in the future These
include the determination of the discount rate,
future salary increases and mortality rates Due to
the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting
date.
The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
actuary considers the interest rates of government
bonds in currencies consistent with the currencies
of the post-employment benefit obligation. The
mortality rate is based on publicly available
mortality tables for the specific countries. Those
mortality tables tend to change only at interval in
response to demographic changes. Future salary
200
increases and gratuity increases are based on
expected future inflation rates for the respective
countries.
v)
Useful lives of property, plant and equipment
The Group reviews the useful life of property,
plant and equipment at the end of each reporting
period. This reassessment may result in change
in depreciation expense in future periods.
vi) Leases
assessing whether
Where the Group is the lessee, key judgements
arrangements
include
contain a lease and determining the lease term.
To assess whether a contract contains a lease
requires judgement about whether it depends
on a specified asset, whether the Group obtains
substantially all the economic benefits from the
use of that asset and whether the the Group has
a right to direct the use of the asset. In order to
determine the lease term judgement is required
as extension and termination options have to be
assessed along with all facts and circumstances
that may create an economic incentive to exercise
an extension option, or not exercise a termination
option. The Group revises the lease term if there
is a change in the non-cancellable period of a
lease. Estimates include calculating the discount
rate which is generally based on the incremental
borrowing rate specific to the
lease being
evaluated or for a portfolio of leases with similar
characteristics.
Where the The Group is the lessor, the treatment
of leasing transactions is mainly determined by
whether the lease is considered to be an operating
or finance lease. In making this assessment,
management looks at the substance of the
lease, as well as the legal form, and makes a
judgement about whether substantially all of the
risks and rewards of ownership are transferred.
Arrangements which do not take the legal form
of a lease but that nevertheless convey the
right to use an asset are also covered by such
assessments..
vii) Amortisation of Government Grants
Grants are amortised to Profit and Loss on a
straight - line basis over the expected lives of
related assets and presented within other income.
viii) Impairment of financial instruments
The Group analyses regularly for
indicators
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
of impairment of its financial instruments by
reference to the requirements under relevant Ind
AS.
The management’s estimates and assessments
in particular on assumptions
were based
regarding the development of the economy as a
whole, the development of textilles markets, and
the development of the basic legal parameters.
b) Current versus non-current classification
The Group presents assets and liabilities in the balance
sheet based on current/ non-current classification.
Assets:
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.
Liabilities:
A liability is current when:
(a)
(b)
(c)
It is expected to be settled in normal operating cycle
It is held primarily for the purpose of trading
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.
Operating cycle: The operating cycle is the time
between the acquisition of assets for processing and
their realisation in cash and cash equivalents. The
Group has identified twelve months as its operating
cycle.
c) Property, Plant and Equipment (PPE) and Depreciation
Property, plant and equipment and capital work
in progress are stated at cost less accumulated
depreciation and accumulated impairment losses,
if any. Such cost includes expenditure that is directly
attributable to the acquisition of the asset. The cost of
self-constructed assets includes the cost of materials
and direct services, any other costs directly attributable
to bringing the assets to its working condition for their
intended use and cost of replacing part of the plant
and equipment and borrowing costs for long-term
construction projects if the recognition criteria are met.
When parts of an item of PPE having significant costs
have different useful lives, then they are accounted for
as separate items (major components) of property,
plant & equipment.
An item of property, plant and equipment and any
significant part initially recognised is de-recognised
upon disposal or when no future economic benefits are
expected from its use. Any gain or loss arising on de-
recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of
profit and loss.
Transition to Ind AS: 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.
Subsequent costs: 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.
Decommissioning Costs: The present value of the
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)
Capital work in progress: 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 :
Depreciation is provided on a pro-rata basis on
the straight-line basis on the estimated useful life
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CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
prescribed under Schedule II to Companies Act , 2013
with the following exception :
relates. All other expenditure is recognised in Statement
of Profit and Loss as incurred.
-
-
Fixed asset costing upto ` 5,000 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.
d)
Investment Properties
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.
these estimated useful
reflect
The Group, based on technical assessment made
by management, depreciates
the building over
estimated useful life of 60 years. The management
lives are
believes
that
the
realistic and
period over which the assets are likely to be used.
Transition to Ind AS: On transition to Ind AS, the Group
has elected to continue with the carrying value of all its
investment properties as at April 1, 2016, measured as
per the previous GAAP, and use that carrying value as
the deemed cost of such investment properties.
fair approximation of
e) Other Intangible assets
Recognition and measurement
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 amortised over estimated useful life. Specialised
softwares are amortised over a period of 3 years or
license period whichever is earlier.
Transition to Ind AS
On transition to Ind AS, the Group has elected to
continue with the carrying value of all its intangible
assets recognised as at April 01, 2016, measured as
per the previous GAAP, and use that carrying value as
the deemed cost of such intangible assets.
Subsequent Expenditure: Subsequent expenditure is
capitalised only when it increases the future economic
benefits embodied in the specific asset to which it
202
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.
f) Borrowing costs
the borrowing of
Borrowing costs consists of interest and amortisation
of ancillary costs that an entity incurs in connection
funds. Borrowing costs
with
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.
the borrowing of
Borrowing costs consists of interest and amortisation
of ancillary costs that an entity incurs in connection
with
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.
g) Foreign Currency Transactions and Translations
Functional and presentational currency
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 Lakhs upto two decimal places.
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Transactions and balances
Transactions in foreign currencies are translated into
the functional currency of the Group at the exchange
rates at the date the transactions or an average rate
if the average rate approximates the actual rate at the
date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated into
the functional currency at the exchange rate at the
reporting date.Non-monetary assets and liabilities
that are measured at fair value in a foreign currencies
are translated into the functional currency at the
exchange rate when the fair value was determined.
Non-monetary assets and 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.
Group Companies
The results and financial position of foreign operations
from
that have a
the presentation currency are translated into the
presentation currency as follows:
functional currency different
•
•
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.
h) Revenue Recognition
The Group derives revenue primarily from export of
manufactured and traded goods.
Revenue from contract with customers
to the customer at an amount that reflects the
consideration to which the Group 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 Group considers the effect
of variable consideration, the existence of significant
financing component, non-cash consideration, and
consideration payable to the customer (if any).
The Group assesses its revenue arrangements against
specific recognition criterior like exposure to significant
risks & rewards associated with the sale of goods or
services. When deciding the most appropriate basis
for presenting revenue or costs of revenue, both
the legal form and substance of the agreement are
reviewed to determine each party’s respective role in
the transaction.
Specific revenue recognition criteria:
(i) Sale of products
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.
(ii) Job work income
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.
(iii) Export Incentives
Export Incentives under various schemes are
accounted in the year of export.
(iv) Other Incomes
a) Sale of software/ SAP income is recognised
at the delivery of complete module & patches
group
(through
companies).
reimbursement
from
Revenue from contract with customers is recognised
when control of the goods or services are transferred
b) Rental Income is recognised on accrual
basis as per the terms of agreement.
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NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
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 recognised when the
right to receive is established.
Variable Consideration
the Group estimates
If the consideration in a contract includes a variable
amount,
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.
Significant Financing Component
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.
Contract balances
Contract assets
A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. If the Group performs by transferring goods
or services to a customer before the customer pays
consideration or before payment is due, a contract
asset is recognised for the earned consideration that is
conditional.
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.
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 Group does
not have a significant amount of capitalised costs
related to fulfilment.
i)
Inventories
i)
ii)
iii)
Inventories of finished goods manufactured by the
Group are valued style-wise and at lower of cost
and estimated net realisable 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 realisable value.
Inventories of raw material, work in progress,
accessories & consumables are valued at cost
(weighted average method) or at estimated
net realisable 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 realisable 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 realisable 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.
204
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
j)
Leases
ii) Lease Liabilities
The Group assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
Group as a lessee
The Group 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 recognises
the lease payments as an operating expense on a
straight-line basis over the term of the lease. The Group
recognises lease liabilities to make lease payments
and right-of-use assets representing the right to use
the underlying assets as below::
i)
Right-of-use assets
The Group recognises right-of-use assets at the
commencement date of the lease (i.e., the date
the underlying asset is available for use). Right-
of-use assets are measured at cost, less any
accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made
at or before the commencement date less any
lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the
shorter of the lease term and the estimated useful
lives of the underlying assets 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.
At the commencement date of the lease, the
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
Group and payments of penalties for terminating
the lease, if the lease term reflects the Group
exercising the option to terminate. Variable lease
payments that do not depend on an index or a
rate are recognised as expenses (unless they
are incurred to produce inventories) in the period
in which the event or condition that triggers the
payment occurs. In calculating the present value
of lease payments, the Group uses its incremental
borrowing rate at the lease commencement date
because the interest rate implicit in the lease is not
readily determinable. After the commencement
date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced
for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease
term, a change in the lease payments (e.g.,
changes to future payments resulting from a
change in an index or rate used to determine such
lease payments) or a change in the assessment
of an option to purchase the underlying asset.
The Group’s lease liabilities are included in other
current and non-current financial liabilities.
(iii) Short-term leases and leases of low-value assets
the short-term
The Group applies
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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CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Group as a lessor
Leases for which the Group is a lessor is classified
as finance or operating lease. Leases in which the
Group does not transfer substantially all the risks
and rewards incidental to ownership of an asset
are classified as operating leases. Rental income
arising is accounted for on a straight-line basis
over the lease terms. Initial direct costs incurred
in negotiating and arranging an operating lease
are added to the carrying amount of the leased
asset and recognised over the lease term on the
same basis as rental income. Contingent rents
are recognised as revenue in the period in which
they are earned.
k) Employee’s benefits
Short term employee benefits: All employee benefits
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.
Defined contribution plan
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.
to government
The contributions paid/payable
206
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.
Defined benefit plan
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
Income will
in Other Comprehensive
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.
Other long term employee benefits
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
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
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.
l)
Provisions
General
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.
m) Financial instruments
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.
(i) Financial assets
Initial recognition and measurement
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.
Subsequent measurement
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)
Financial asset carried at amortised cost
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.
Financial asset at fair value through other
comprehensive income (FVTOCI)
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.
Financial asset at fair value through profit and
loss (FVTPL)
A financial asset which is not classified in any of
the above categories are subsequently fair valued
through profit or loss.
De-recognition
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
207
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
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.
(ii) Financial liabilities
Initial recognition and measurement
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
include borrowings,
financial
trade and other payables, security deposits
received etc.
liabilities
Subsequent measurement
For purposes of subsequent measurement,
financial
in two
liabilities are classified
categories:
of a new liability. The difference in the
respective carrying amounts is recognised
in the statement of profit and loss.
(iii) Offsetting of financial instruments
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 recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously
(iv) Derivative financial instruments
Till March 31, 2019, the forward currency
contracts were used to hedge foreign currency
risks. Such derivative financial instruments are
initially recognised 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.
Financial liabilities at amortised cost
(v) Hedge Accounting
-
-
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
liabilities at
initial recognition. Financial
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.
De-recognition
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
208
With effect from April 2019, the Group adopted
that are
Hedge Accounting.The derivatives
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
instrument, the effective portion of
hedging
changes in the fair value of the derivative is
recognised 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 recognised
immediately in the statement of profit and loss.
The amount accumulated is retained in cash flow
hedge reserve and reclassified to profit or loss
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
in the same period or periods during which the
hedged item affects the statement of profit and
loss.
If the hedging
longer meets
instrument no
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 recognised
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 recognised
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.
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 recognised, 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.
p) Fair value measurement
n)
Impairment of financial assets
the expected credit
The Group measures
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.
o)
Impairment of non-financial assets
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
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
the
transaction between market participants at
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
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.
techniques
that are
The Group uses valuation
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.
liabilities for which fair value
All assets and
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
209
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
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..
q) Taxes
Current income tax
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 recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income (OCI) or in equity).
Current tax items are recognised 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..
Deferred tax
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
210
tax rates that are expected to apply to the period 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 balance sheet date. Tax
relating to items recognised directly in equity/other
comprehensive income is recognised 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).
Minimum Alternate Tax
Minimum Alternate Tax (MAT) paid in the year is
charged to the Statement of Profit and Loss as current
tax.The Group recognises MAT credit available as
an asset only to the extent that there is convincing
evidence that 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).
r) Cash1 and cash equivalents
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.
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash balance on hand,
cash balance at banks and short-term deposits, as
defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Group’s cash
management.
s) Statement of Cash flows
The statement of cash flows have been prepared under
indirect method, whereby profit or loss is adjusted for
the effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense
associated with investing or financing cash flows.
t)
Earnings per share (EPS)
In determining earnings per share, the Group considers
the net profit after tax and includes the post tax effect
of any extraordinary items.
Basic EPS amounts are calculated by dividing the
profit for the year attributable to the shareholders of
the Group by the weighted average number of equity
shares outstanding as at the end of reporting period.
Diluted EPS amounts are calculated by dividing the
profit attributable to the shareholders of the Group
by the weighted average number of equity shares
outstanding during the year plus the weighted average
number of Equity shares that would be issued on
conversion of all the dilutive potential equity shares
into equity shares.
Dilutive potential equity shares are deemed converted
as of the beginning of the period, unless they have been
issued at a later date. A transaction is considered to
be antidilutive if its effect is to increase the amount of
EPS, either by lowering the share count or increase the
earnings.
u) Government grants
Grants from the government are recognised at their
fair value where there is reasonable assurance that the
grant will be received and the Group will comply with all
attached conditions.
Government grants relating to the purchase of
property, plant and equipment are included in non-
current liabilities as deferred income and are credited
to Profit and Loss on a straight - line basis over the
expected lives of related assets and presented within
other income.
v) Contingent liabilities and contingent assets
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.
w) Research & development costs
Research and development costs that are in nature
of tangible assets and are expected to generate
probable future economic benefits are capitalised as
tangible assets. Revenue expenditure on research and
development is charged to the statement of profit and
loss in the year in which it is incurred.
x) Exceptional items
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.
211
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
4 PROPERTY, PLANT AND EQUIPMENT
Particulars
Gross carrying amount
As at April 1, 2020
Add: Additions made during the year
(Less): Disposals during the year
(Less)/Add: Adjustments during the year
As at March 31, 2021
Add: Additions made during the year
(Less): Disposals during the year
Land-
freehold
Land-
leasehold
Buildings
(Amount in ` Lakhs, unless otherwise stated)
Total
Furniture
and Fixures
Plant and
Equipment
Vehicles
Leasehold
improvements
1,829.72
47.74
6,965.06
809.06
19,219.53
1,644.00 1,490.92
32,006.06
-
-
-
532.57
367.37
33.86
895.03
184.53
88.47
2,101.84
-
-
-
-
(17.26)
-
(66.27)
(82.53)
(79.55)
28.46
(193.18)
(17.03)
(8.86)
(271.15)
1,829.72
580.32
7,252.88
871.38
19,904.12
1,811.50 1,504.26
33,754.22
947.36
38.53
578.01
1,306.85
3,570.34
730.24
86.20
7,257.53
-
-
-
(189.94)
(132.04)
-
(210.52)
(532.51)
(Less)/Add: Adjustments during the year
(75.88)
92.41
114.12
42.75
440.83
32.13
(7.60)
638.77
As at March 31, 2022
Accumulated depreciation
As at April 1, 2020
Add: Depreciation charge for the year
(Less): Disposals during the year
(Less)/Add: Adjustments during the year
As at March 31, 2021
Add: Depreciation charge for the year
(Less): Disposals during the year
(Less)/Add: Adjustments during the year
As at March 31, 2022
Net carrying amount
As at March 31, 2022
As at March 31, 2021
2,701.20
711.25
7,945.01
2,031.04
23,783.25
2,573.87 1,372.34 41,118.00
-
-
-
-
-
-
-
-
-
1.37
1,213.61
348.85
7,067.56
640.16
545.45
9,817.00
1.96
283.55
173.37
1,884.32
188.24
190.65
2,722.09
-
-
-
-
(7.71)
-
(32.91)
(40.62)
(17.62)
11.16
(105.92)
(7.69)
(4.06)
(124.15)
3.33
1,479.54
533.37
8,838.25
820.71
699.13
12,374.33
7.82
308.82
331.27
1,968.55
234.90
175.77
3,027.13
-
-
-
(142.45)
(62.95)
-
(136.20)
(341.60)
26.77
12.01
184.56
13.65
5.71
242.69
11.15
1,815.13
734.20
10,928.42
1,069.26
744.40 15,302.55
2,701.20
700.11
6,129.88
1,296.84
12,854.83
1,504.61
627.94 25,815.42
1,829.72
576.98
5,773.34
338.01
11,065.87
990.79
805.13
21,379.87
a) The above assets includes Gross block of land of ` 78.55 Lakhs (March 31, 2021: ` 78.55 Lakhs) situated at Narshingpur,
Tehsil District Gurgaon (Haryana). The group has executed a collaboration 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, 2021:
` 42.50)However, as certified by the Management, the work has not started during the financial year 2021-22 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.
c) The above property, plant and equipment includes assets given on lease (Holding Company), the details of which are as under:
As at March 31, 2022
Gross carrying amount
Accumulated depreciation
Net carrying amount
As at March 31, 2021
Gross carrying amount
Accumulated depreciation
Net carrying amount
Plant and
Equipment
Furniture and
Fixures
27.77
21.64
6.13
27.77
18.96
8.81
21.22
18.20
3.02
21.22
15.24
5.98
Total
48.99
39.84
9.15
48.99
34.20
14.79
d) Adjustments made above includes fluctuations in foreign currency on conversion into presentation currency.
5 CAPITAL WORK IN PROGRESS
Particulars
Balance at the beginning of the year
212
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
4,701.46
3,610.29
PEARL GLOBAL INDUSTRIES LIMITED NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Add: Addition made during the year
Less: (Disposals)/adjustments during the year
Balance at the end of the year
a) Breakup of capital work in progress is as follows:
Building
Plant and Machinery
b) Ageing schedule of CWIP as at March 31, 2022:
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
524.14
(3,704.10)
1,521.50
1,684.75
(593.58)
4,701.46
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
1,331.66
189.84
1,521.50
3,892.71
808.75
4,701.46
Particulars
Amount in CWIP for a period of
(Amount in ` Lakhs, unless otherwise stated)
Total
Less than 1 year
1-2 years
Projects in progress
Projects temporarily suspended
686.63
-
834.17
-
Ageing schedule of CWIP as at March 31, 2021:
2-3 years More than 3
years
0.70
-
-
-
1,521.50
-
Particulars
Amount in CWIP for a period of
(Amount in ` Lakhs, unless otherwise stated)
Total
Projects in progress
Projects temporarily suspended
1,445.76
-
2,038.59
-
Less than 1 year
1-2 years
2-3 years More than
3 years
477.15
-
739.95
-
4,701.46
-
c) There are no capital work in progress as at March 31, 2022 and March 31, 2021 whose completion is overdue or has
exceeded its cost as compared to original plan except CWIP relating to PGIL(HK) as mentioned below :-
Completion schedule of CWIP as at March 31, 2022:
Particulars
Projects in progress
Project 1 - PG(HK)
Amount in CWIP for a period of
(Amount in ` Lakhs, unless otherwise stated)
Total
Less than 1 year
1-2 years
2-3 years More than 3
years
-
-
0.70
0.70
Completion schedule of CWIP as at March 31, 2021:
Particulars
Projects in progress
Project 1 - PG(HK)
Amount in CWIP for a period of
(Amount in ` Lakhs, unless otherwise stated)
Total
Less than 1 year
1-2 years
2-3 years More than
3 years
-
-
0.68
477.15
477.15
213
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
6 INVESTMENT PROPERTIES
Particulars
Gross carrying amount
As at April 01, 2020
Add: Additions made during the year
Less: Disposals/adjustments during the year
As at March 31, 2021
Add: Additions made during the year
Less: Disposals/adjustments during the year
As at Mar 31, 2022
Accumulated depreciation
As at April 01, 2020
Add: Depreciation charge for the year
(Less): Disposals /adjustments during the year
As at March 31, 2021
Add: Depreciation charge for the year
(Less): Disposals /adjustments during the year
As at Mar 31, 2022
Net carrying amount
As at Mar 31, 2022
As at March 31, 2021
Particulars
Land freehold
(Amount in ` Lakhs, unless otherwise stated)
Total
Building
Land leasehold
3,135.93
103.45
(1,401.01)
1,838.38
60.39
(23.07)
1,875.70
-
-
-
-
-
-
-
10.36
-
-
10.36
-
(10.36)
-
-
-
-
-
-
-
-
4,580.71
228.52
(197.49)
4,611.74
-
(129.65)
4,482.09
333.74
86.77
(14.64)
405.87
82.20
(34.76)
453.31
7,727.00
331.97
(1,598.50)
6,460.47
60.39
(163.08)
6,357.78
333.74
86.77
(14.64)
405.87
82.20
(34.76)
453.31
1,875.70
1,838.38
-
10.36
4,028.78
4,205.87
5,904.48
6,054.60
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2022
For the year ended
March 31, 2021
(a) Amounts recognised in statement of profit and loss for investment
properties
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
Income from Investment properties (net)
(b) Fair value of investment properties
Estimation of fair value
769.38
47.44
0.75
721.19
82.20
638.99
770.91
56.44
8.44
706.03
86.77
619.26
11,213.29
10,259.00
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.
7 GOODWILL
Particulars
Goodwill on acquisition of subsidiaries
Add/ (Less): Foreign Exchange Fluctuation
214
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
1,756.13
44.65
1,800.78
1,792.66
(36.53)
1,756.13
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
8 OTHER INTANGIBLE ASSETS
Particulars
Gross carrying amount
As at April 1, 2020
Add: Additions during the year
Less: (Disposals) / adjustments during the year
As at March 31, 2021
Add: Additions during the year
Less: (Disposals) / adjustments during the year
As at March 31, 2022
Amortisation and impairment
As at April 01, 2020
Add: Amortisation charge for the year
(Less): Disposals /adjustments during the year
As at March 31, 2021
Add: Amortisation charge for the year
(Less): Disposals/adjustments during the year
As at March 31, 2022
Net Carrying Amount
As at March 31, 2022
As at March 31, 2021
9 INVESTMENTS
Particulars
(I) Non- Current
A. Equity Instruments
(Amount in ` Lakhs, unless otherwise stated)
Computer Software
Total
265.11
9.21
-
274.32
48.53
-
322.84
180.35
39.89
-
220.24
30.53
-
250.77
72.06
54.07
265.11
9.21
-
274.32
48.53
-
322.84
180.35
39.89
-
220.24
30.53
-
250.77
72.06
54.07
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
Fair value through profit and loss
(Quoted)
PDS Multinational fashions Limited, India 50000 (March 31, 2021: 50000)
Equity Shares of ` 10 each fully paid up
B.
Investments in Financial Markets
(Fair value through other comprehensive income)
Investments in Units in money market funds, at fair value - (Quoted)
Debt Investment, at fair value - (Unquoted)
Investment in listed equity investment, at fair value- (Quoted)
C.
Investment in Preference Share of Subsidiary - (Unquoted)
(At Amortised Cost)
Pearl Apparel Fashions Limited, India (Refer 'b' below)
873.50
335.00
873.50
335.00
-
600.41
1,308.08
1,908.49
96.33
1,946.59
-
2,042.92
-
215
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Particulars
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
3000000 (March 31, 2021: 3000000) Preference Shares of ` 10 each fully paid up
Less: Provision for diminution in value of Investments
300.00
(30.00)
-
270.00
270.00
D.
Investments in Government securities - (Unquoted)
At Amortised cost
Investments in key man insurance policy (Refer 'c' below)
2,202.21
2,085.98
Investments in Government securities
- Gold Sovereign Bond- 37 units of 2 gram each issued by Reserve Bank of India
Total (A + B + C + D)
(II) Current
A.
Investments in mutual funds - (Quoted)
Fair value through profit and loss
ICICI Prudential Short Term Fund DP Growth
1.63
2,203.84
4,985.82
1.63
2,087.62
4,735.54
273.64
260.63
536068.057 units of Face Value of ` 10 per unit (March 31, 2021: 536068.057 units)
L&T Banking and PSU debt fund direct plan - growth
-
246.01
Nil units of Face Value of ` 10 per unit (March 31, 2021: 1223214.3850 units)
IDFC Banking and PSU debt fund direct plan - growth
258.62
247.74
1267806.9250 units of Face Value of ` 10 per unit (March 31, 2021:
1267806.9250 units)
a) Aggregate book value of quoted investments
Aggregate market value of quoted investments
Aggregate value of unquoted investments
Aggregate amount of impairment in value of unquoted investments
Aggregate value of unquoted investments (net of impairment)
532.26
2,713.84
2,713.84
2,804.24
-
2,804.24
754.38
1,185.71
1,185.71
4,334.21
30.00
4,304.21
b) 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 Group has impaired its investment in aforesaid subsidiary and recognised the same at its recoverable in
2020-21.
During the 2021-22, the Group has received ` 296.83 Lakhs from Pearl Apparel Fashions Limited on redemption of
preference share capital of Pearl Apparel Fashions Limited. Provision for Impairment amounting to ` 30 Lakhs has been
written back and Investment for the same has been written of by ` 3.17 Lakhs.
c) The amount invested in key man insurance policy by Pearl Global (HK) Limited has been pledged to bank to secure banking
facilities by the said subsidiary.
d)
In respect of Pearl Global Fareast Limited, financial assets at fair value through other comprehensive income with carrying
value of ` Nil are pledged to bank to secure banking facilities granted to a subsidiary of the group.(March 31, 2021:
` 1,121.67 Lakhs).
e) The number of units and number of shares in note above represents absolute numbers.
An impairment analysis is performed at each reporting date by considering the probability of default of the loan receivables. The
expected credit losse are estimated by applying a loss rate approach with reference to the historical loss record of the Group.
The loss rate is adjusted to reflect the current conditions and forecasts of future economic conditions.
216
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
10 LOANS
Particulars
(Unsecured, considered good unless otherwise stated)
Loans to employees
Loans to related parties (Refer note no. 46)
Loans to others
Loans receivable from others - credit impaired
Less: Loss Allowance
11 OTHER FINANCIAL ASSETS
Particulars
(Unsecured, considered good unless otherwise stated)
Security deposits
Interest accrued but not due on
- Term deposits
Deposits with original maturity of more than 12
months (Refer note 18)
Mark to market forward contracts
Other receivable
Total (A)
12 INCOME TAX
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
5.38
-
119.62
1.67
(1.67)
125.01
7.21
-
2,158.23
-
-
2,165.44
35.98
-
3,423.48
47.86
(47.86)
3,459.46
23.84
300.00
1,383.90
-
-
1,707.73
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
799.91
931.57
113.02
43.42
21.59
273.70
-
1.14
1,096.34
21.56
265.69
-
1.13
1,219.95
40.82
-
406.69
30.34
590.85
14.59
-
-
31.22
89.24
The major components of income tax expense for the years ended March 31, 2022 and March 31, 2021 are:
a)
Income Tax recognised in Statement of Profit and Loss
Particulars
Tax Expense:
a) Current tax
b) Adjustments in respect of current income tax of previous year
c) Deferred tax
Income tax expense reported in the statement of profit or loss
b)
Income Tax recognised in Other Comprehensive Income
Particulars
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
1,074.08
-
496.86
1,570.94
372.04
10.94
(995.74)
(612.75)
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
Net loss/(gain) on remeasurements of defined benefit plans
Income tax on items that will be reclassified subsequently to statement of
profit and loss
Income tax charged to OCI
(20.48)
(105.46)
(23.22)
(342.72)
(125.94)
(365.94)
217
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
c) Net Deferred tax Asset/(Liability)
Particulars
Pearl Global Industries Limited
Recognised DTA- Pearl Global Industries Limited
Recognised DTA- Pearl Global (HK) Limited
Recognised DTL- Pearl Global Industries Limited
Recognised DTL- Pearl Global (HK) Limited
MAT Credit Entitlement
Total Net Deferred tax Assets
Total Net Deferred tax Liabilities
(Amount in ` Lakhs, unless otherwise stated)
Balance sheet et
As at
March 31, 2022
As at
March 31, 2021
-
89.81
89.81
232.27
24.37
256.64
-
89.81
232.27
2,488.68
70.89
2,559.57
2,174.99
(5.56)
2,169.43
76.85
466.99
-
d) Reconciliation of Effective tax Rate and itemwise movement of deferred tax
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) 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.
f) 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.
13 NON CURRENT TAX ASSET
Particulars
Advance income tax
(Net of provision of ` 1,685.98 Lakhs (March 31, 2021 : ` 1,288.03 Lakhs)
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
601.00
771.37
601.00
771.37
14 OTHER ASSETS
Particulars
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
(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
Deferred Assets- Security Deposit
170.92
185.04
57.51
-
30.32
22.74
(22.74)
1.84
15.03
22.74
(22.74)
1.84
2,818.75
-
-
-
2,103.76
-
-
-
218
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Prepaid expenses
Export incentive receivable
Advances to suppliers
Other receivables
Less: Loss allowance
Total (A)
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
7.70
-
-
-
As At
March 31, 2021
7.71
-
-
-
210.77
209.62
Current
As At
March 31, 2022
505.40
4,661.60
2,184.56
4,415.66
(153.28)
14,490.19
As At
March 31, 2021
301.09
1,680.90
889.25
4,756.09
-
9,731.09
a) Other Receivables of ` 3,009.35 Lakhs ( March 31, 2021 ` 2,538.77 Lakhs) includes enhanced compensation of ` 2,335.15
Lakhs receivable by the Group from National Highways Authority of India pursuant to land acquisition by the Central
Government under National Highways Act, 1956 (Refer note 36). Further, it includes expenditure recoverable from
Jharkhand State Livelihood Promotion Society (Ministry of Rural Development) regarding Project cost component for
skilling candidates in state of Jharkhand.
15 INVENTORIES
Particulars
Raw materials
Good in transit- raw material
Work in progress
Finished goods
Scrap Stock
Stores spares & others
Less: Provision on inventories (Finished Goods)
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
32,955.06
243.35
12,466.08
8,044.05
41.82
363.39
54,113.74
(155.57)
53,958.18
13,670.22
19.88
9,637.71
4,299.21
166.84
321.34
28,115.20
(238.23)
27,876.97
a) Refer note 21 for information on above assets being pledged as security by the Group.
16 TRADE RECEIVABLES
Particulars
Considered good - secured
Considered good - unsecured
Trade receivables which have significant increase in credit risk
Trade receivables - credit impaired
Less: Loss allowance
Total
(Amount in ` Lakhs, unless otherwise stated)
As At
March 31, 2021
-
24,217.21
-
656.18
(656.18)
24,217.21
As At
March 31, 2022
-
36,662.31
-
756.25
(756.25)
36,662.31
219
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
a) Trade receivables ageing schedule as at March 31, 2022:
Particulars
Outstanding for following periods from due date of payment
(Amount in ` Lakhs, unless otherwise stated)
(i) Undisputed Trade receivables
– considered good
Not due Less than
6 months
8,351.56
28,234.48
6 months
-1 year
1-2 years
2-3 years More than
Total
3 years
5.78
67.09
3.41
- 36,662.31
(ii) Undisputed Trade Receivables –
-
-
-
which have significant increase
in credit risk
(iii) Undisputed Trade Receivables
110.64
73.01
0.00
– credit impaired
(iv) Dispute Trade Receivables
considered good
(v) Disputed Trade Receivables
which have significant increase
in credit risk
(vi) Disputed Trade Receivables –
credit impaired
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
572.61
756.25
-
-
-
-
-
-
Less: Allowances for expected credit loss
Net Trade receivables
(110.64)
28,234.48
(73.01)
8,351.56
-
5.78
-
67.09
-
3.41
(572.61)
(756.25)
- 36,662.31
Trade receivables ageing schedule as at March 31, 2021:
Particulars
Outstanding for following periods from due date of payment
(Amount in ` Lakhs, unless otherwise stated)
(i) Undisputed Trade receivables
– considered good
(ii) Undisputed Trade Receivables
– which have significant
increase in credit risk
(iii) Undisputed Trade Receivables
– credit impaired
(iv) Dispute Trade Receivables
considered good
(v) Disputed Trade Receivables
which have significant increase
in credit risk
(vi) Disputed Trade Receivables –
credit impaired
Less: Allowances for expected
credit loss
Net Trade receivables
Not due Less than
6 months
6,827.20 16,005.65
6 months
-1 year
1,003.14
1-2 years
2-3 years More than
Total
3 years
280.39
100.83
-
24,217.21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
656.18
656.18
-
-
-
-
-
-
-
(656.18)
(656.18)
6,827.20 16,005.65
1,003.14
280.39
100.83
- 24,217.21
b) The movement in the allowance for expected credit loss allowance is as follows:
Particulars
Balance as at beginning of the year
Loss allowances during the year
Trade receivables written off / written back during the year
Balance as at the end of the year
(Amount in ` Lakhs, unless otherwise stated)
As At
March 31, 2021
377.33
278.85
-
656.18
As At
March 31, 2022
656.18
183.65
(83.57)
756.25
220
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
c) Trade receivables are generally on terms of 30 - 90 days (March 31, 2021: 0-180 days).
d) The Group exposure to credit and currency risk, and loss allowances related to trade receivables are disclosed in note 43.
e)
For information on trade receivables pledged as security, Refer note no. 21.
f) No trade or other receivables are due from directors or other officers of the Group either severally or jointly with any other
persons.
17 CASH AND CASH EQUIVALENTS
Particulars
Balances with banks:
- Current account
- Deposits with original maturity of less than 3 months (Refer note (b))
Cash on hand
Cheque/drafts on hand
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
10,356.64
8,794.19
315.15
63.32
949.95
177.60
41.95
457.61
11,685.07
9,471.34
a)
For the purpose of the statement of cash flow, the cash and cash equivalent are same given above.
b) Refer note 21 for information on above assets being pledged as security by the Group.
18 BANK BALANCES OTHER THAN CASH & CASH EQUIVALENTSM
Particulars
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 (Refer note 'a' below)
Balance with bank (Considered doubtful)
Less: Loss allowance
Less: Amount disclosed under “other financial assets”
(Refer Note No. 11)
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
-
-
-
-
26.24
3,266.15
29.75
2,203.46
273.70
265.69
-
-
-
-
273.70
273.70
-
-
265.69
265.69
-
-
3,292.39
-
0.03
(0.03)
2,233.21
-
-
-
3,292.39
2,233.21
a) Refer note 21 for information on above assets being pledged as security by the Group.
b) The bank has created as lien/charge on any amount kept by the borrower time to time with the bank as term deposit and
other deposit maximum upto ` 4,400 Lakhs for Letter of credit issued for the Group..
221
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
19 SHARE CAPITAL
Particulars
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2021
As at
March 31, 2022
Authorised
51440000* (March 31, 2021: 51440000) equity shares of ` 10 each
10000* (March 31, 2021: 10000) 4% Non Cumulative Redeemable Preference
Shares of ` 10 each
3256000* (March 31, 2021: 3256000) 10.5% Non Cumulative Redeemable
Preference Shares of ` 100 each
Issued, subscribed and paid up
21663937* (March 31, 2021: 21663937) Equity Shares of ` 10 each fully paid up
* Number of Shares are given in absolute numbers.
a) Reconciliation of issued and subscribed share capital:
Equity Share (` 10 each fully paid up)
Balance as at April 1, 2020
Changes during the year
Balance as at March 31, 2021
Changes during the year
Balance as at March 31, 2022
b) Terms/ rights attached to equity shares:
5,144.00
1.00
5,144.00
1.00
3,256.00
3,256.00
8,401.00
8,401.00
2,166.39
2,166.39
2,166.39
2,166.39
No. of shares
Amount
21,663,937
-
21,663,937
-
21,663,937
2,166.39
-
2,166.39
-
2,166.39
The Holding 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 Holding Company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors of the Holding Company is subject to the approval of the shareholders in the ensuing
Annual General Meeting. In the event of liquidation of the Holding Company, the holders of equity shares will be entitled to
receive remaining assets of the Holding Company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders. Subsequent to the balance sheet date, the Board of
Directors has declared interim dividend of ` 5/- per share for FY 21-22 for distribution to shareholders.
c) Details of shareholders holding more than 5% shares
Name of Party
As at March 31, 2022
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2021
Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mr. Sanjiv Dhireshbhai Shah
Total
No. of shares
4,413,635
2,862,145
6,947,621
1,761,979
15,985,380
Holding %
20.37
13.21
32.07
8.13
73.78
No. of shares
4,413,635
2,862,145
6,947,621
1,881,004
16,104,405
Holding %
20.37
13.21
32.07
8.68
74.33
d)
Details of Promotor’s shareholding:
Name of Shareholder
As at March 31, 2022
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2021
% change
during the year
Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth
Nim International Commerce Llp
Total
No. of shares
4,413,635
2,862,145
6,947,621
201,478
30
14,424,909
% of total
shares
20.37
13.21
32.07
0.93
0.00
66.58
No. of shares
4,413,635
2,862,145
6,947,621
201,478
30
14,424,909
% of total
shares
20.37
13.21
32.07
0.93
0.00
66.58
222
-
-
-
-
-
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Name of Shareholder
As at March 31, 2021
Mrs. Payel Seth
Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth
Nim International Commerce Llp
Total
No. of shares
4,413,635
2,862,145
6,947,621
201,478
30
14,424,909
Holding %
20.37
13.21
32.07
0.93
0.00
66.58
No. of shares
4,413,635
2,862,145
6,947,621
201,478
30
14,424,909
Holding %
20.37
13.21
32.07
0.93
0.00
66.58
-
-
-
-
-
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2020
% change
during the year
20 OTHER EQUITY
Particulars
General Reserve
Securities Premium
Capital Redemption Reserve
Amalgamation Reserve
Foreign Currency Translation Reserve
Change in investment through other comprehensive income
Retained Earnings
Cash Flow Hedge Reserve
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
4,204.36
17,103.90
95.00
625.95
5,039.94
(35.11)
30,388.43
305.08
57,727.53
4,204.36
17,103.90
95.00
625.95
5,448.73
(309.53)
23,668.60
(1,281.96)
49,555.07
I.
For Movement during the period in Other Equity, Refer Statement of Changes in Equity.
II. Nature and purpose of reserves
a) General reserve
Particulars
Balance as at beginning/ end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
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.
b) Securities premium
Particulars
Balance as at beginning/ end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
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.
223
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
c) Capital redemption reserve
Particulars
Balance as at beginning/ end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
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.
d) Amalgamation reserve
Particulars
Balance as at beginning/ end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
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.
e)
Foreign currency translation reserve
Particulars
Balance as at beginning/ end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
5,039.94
5,448.73
The exchange differences arising from the translation of financial statements is recognised in other comprehensive income
and is presented within equity.
f) Retained earnings
Particulars
Balance as at beginning/ end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
30,388.43
23,668.60
Retained earnings are the profits that the Group has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders. Out of the above, reserve on account of revaluation of assets of ` 402.39 Lakhs
(March 31, 2021: ` 400.51 Lakhs) is not available for distribution.
g) Cash Flow Hedge Reserve
Particulars
Balance as at beginning/ end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2021
(1,281.96)
As at
March 31, 2022
305.08
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.
h) Change in investment through Other Comprehensive Income (OCI) represents fair valuation of investments of subsidiary
company routed through OCI.
Particulars
Balance as at beginning/ end of the year
224
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
(35.11)
(309.53)
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
21 LONG TERM BORROWINGS
Particulars
From Banks (Secured)
- Term Loan*
- Vehicle Loans
From Financials Institutional (Secured)
- Vehicle Loans
From others - unsecured
Less: Amount disclosed under other financial liabilities
as ‘Current maturities of long-term borrowings’ (Refer
note 21A)
*includes loans which are carried at amortised cost
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
12,072.77
78.82
12,218.39
118.30
4,046.00
37.52
-
231.22
12,382.81
-
66.84
58.80
12,462.33
-
64.85
-
4,148.37
4,148.37
4,044.86
36.58
48.55
-
4,129.99
4,129.99
12,382.81
12,462.33
-
-
i) Nature of Security in respect of Holding Company: Following security details rank pari passu (first, second, exclusive
or 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) 751, Pace City-II, Sector 37,
Gurugram, (iii) Company’s property at Plot No. 51, Sector 32, Gurugram, and (iv) 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 ` 713.61 Lakhss. Other FDR’s pledged with specific banks- PNB, UCO & IndusInd Bank
are ` 876.80 Lakhss (March 31, 2021: ` 607.02 Lakhss)
e)
Irrevocable and Unconditional Personal Guarantee of Mr. Deepak Seth (Promoter Director) and/or Mr. Pulkit Seth
(Promoter Director).
ii) Security in respect of Pearl Global (HK) Limited
a) As at March 31, 2022, certain of the Company’s Inventories with a net carrying amount of approximately ` 1,516.20
(March 2021: ` 1,470.00) were pledged to secure banking facilities granted to the Comapny.
b) As at March 31, 2022, certain of the Company’s property, plant & equipment with a net carrying amount of approximately
` 4,882.00 (March 31, 2021: ` 4,350.67) were pledged to secure banking facilities granted to the Company.
c) As at March 31, 2022, certain of the Company’s leasehold land with a net carrying amount of approximately ` 2,581.67
(March 31, 2021: ` 2,605.85) were pledged to secure banking facilities granted to the Company.
d) As at March 31, 2022, certain of the Company’s trade receivable with a net carrying amount of approximately
` 2,653.35 (March 31, 2021: ` 2,572.50) were pledged to secure banking facilities granted to the Company.
iii) Maturity Profile.
Particulars
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
2022-23
4,046.00
2023-24
3,837.67
2024-25 Beyond 2024-25
4,358.50
3,876.60
102.37
36.81
30.67
11.34
-
-
-
231.22
225
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
iv) Vehicle loans are secured against hypothecation of respective vehicles.
v) The above loan(s) carries rate of interest ranging between 1.75% to 12.11% per annum.
21A : Short Term Borrowings
Particulars
Working capital loan from banks(secured)
- Rupee loan
Current maturities of long-term borrowings (Refer no. 21)
As at
March 31, 2022
As at
March 31, 2021
39,883.00
4,148.37
44,031.37
19,990.64
4,129.99
24,120.63
a) Nature of security in respect of Holding Company: The Company has entered into borrowing arrangements with lenders
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.
b) Security in respect of Pearl Global (HK) Limited,
The bank borrowing facilities are secured by Company’s property, plant and equipment, inventories, trade receivables,
corporate guarantee of the holding company and a fellow subsidiaries and director’s personal guarantee.
c) Security in respect of Norp Knit Industries Limited,
-
-
-
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, 2022, Fixed Deposit of ` 352 Lakhs (March 31, 2021: ` 347 Lakhs).
Personal Guarantee by the promoter director of the Company.
c) Security in respect of Pearl Global Fareast Limited
-
As at March 31, 2022, Company’s financial assets with a net carrying amount of ` Nil (March 2021: ` 1,121.67 Lakhs)
were pledged to secure banking facilities granted to the Company.
d) For interest rate & liquidity risk related disclosures, (refer note 43).
22 OTHER FINANCIAL LIABILITIES
Particulars
Security deposit
Book overdraft
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
Notes:
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
240.92
-
-
-
-
-
As At
March 31, 2021
137.28
-
-
-
-
-
Current
As At
March 31, 2022
6.51
-
93.59
26.24
92.90
-
As At
March 31, 2021
-
261.51
23.26
29.75
203.74
12.34
-
240.92
-
137.28
684.85
904.09
796.14
1,326.75
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 (March 31,2021: Nil).
226
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
23 PROVISIONS
Particulars
Provision for employee benefits
Provision for compensated absenses
Provision for gratuity (Refer to note 39)
Other employee benefits
Notes:
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
As At
March 31, 2021
Current
As At
March 31, 2022
As At
March 31, 2021
574.57
1,775.48
77.51
2,427.56
618.71
1,625.06
66.35
2,310.12
30.87
213.94
-
244.81
25.85
83.19
-
109.04
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 ( March 31,2021: Nil)
24 OTHER LIABILITIES
Particulars
Advance received against sale of land
Deferred government grant
Deferred rental income
Statutory dues
Others
25 TRADE PAYABLES
Particulars
(Amount in ` Lakhs, unless otherwise stated)
Non - Current
As At
March 31, 2022
2,963.62
6.58
35.87
-
-
3,006.07
As At
March 31, 2021
2,963.62
7.58
42.16
-
-
3,013.35
Current
As At
March 31, 2022
-
145.61
18.84
784.07
-
948.52
As At
March 31, 2021
-
145.61
15.06
577.33
0.56
738.57
Total outstanding dues of micro and small enterprises
Total outstanding dues of creditors other than micro and small enterprises
a) Trade Payables ageing schedule as at March 31, 2022:
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
663.99
43,204.80
43,868.79
481.71
24,195.13
24,676.84
(Amount in ` Lakhs, unless otherwise stated)
Particulars
(i) MSME
(ii) Others
(iii) Disputed dues — MSME
(iv) Disputed dues — Others
Not due
482.99
31,491.38
-
-
Outstanding for following periods from due date of payment
Unbilled
Less than
dues
1 year
2-3 years More than
1-2 years
3 years
Total
181.00
6,787.52
-
-
-
30.62
-
-
-
0.92
-
-
-
5.68
-
-
-
4,888.71
-
-
663.99
43,204.80
-
-
227
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Trade Payables ageing schedule as at March 31, 2021:
(Amount in ` Lakhs, unless otherwise stated)
Particulars
(i) MSME
(ii) Others
(iii) Disputed dues — MSME
(iv) Disputed dues — Others
Not due
472.54
17,019.02
-
-
Outstanding for following periods from due date of payment
Unbilled
Less than
dues
1 year
2-3 years More than
1-2 years
3 years
Total
9.16
4,297.09
-
-
-
270.21
-
-
-
50.34
-
-
-
0.45
-
-
-
2,558.02
-
-
481.71
24,195.13
-
-
b) Trade payable are non- interest bearing and are generally on a credit period of not more than 90 days except in case
of Micro & Small Enterprises (if any) which are setlled within 45 days.
c)
For information of amount of trade payable to related parties, Refer note no. 46.
d) As per Schedule III of the Companies Act, 2013 and as certified by the Management, the amount due to Micro & Small
Enterprises as defined in Micro, Small and Medium Enterprises Development Act, 2006 is as under :
Details of dues to Micro and Small Enterprises as defined under MSMED Act, 2006
(i) The amount due thereon remaining unpaid to any supplier at the
end of each accounting year
- Principal
- Interest on above
(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.
662.86
1.13
-
481.59
0.12
-
-
-
1.13
-
0.12
-
e) 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.
f)
The Group’s exposure to market and liquidity risk related to trade payables is disclosed in note 43.
26 LIABILITIES FOR CURRENT TAX (NET)
Particulars
Provision for income tax
(Net of advance tax ` 856.21 Lakhs (March 31, 2021 ` 278.60 Lakhs))
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
217.87
217.87
93.44
93.44
228
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
27 REVENUE FROM OPERATIONS
Particulars
Sale of Product
Job Receipts
Other Operating Revenues
Revenue from operations
a) Performance obligation
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
145,861.69
-
3,230.97
149,092.65
For the year ended
March 31, 2022
262,931.37
25.98
8,395.55
271,352.90
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 materialised, tax laws etc.) is not applicable to the Group.
b) Disaggregation of revenue: The table below presents disaggregated revenues from contracts with customers on the basis
of geographical spread of the operations of the Group. The Group believes that this disaggregation best depicts how the
nature, amount of revenues and cash flows are affected by market and other economic factors:
Revenue based on Geography
India
Outside India
Revenue from operations
c) Reconciliation of revenue from operations with contracted price
Particulars
Contracted Price
Less: Sales Returns
(Less): Rebates and discounts
For the year ended
March 31, 2022
9,247.15
262,105.75
271,352.90
For the year ended
March 31, 2021
3,614.27
145,478.38
149,092.65
For the year ended
March 31, 2022
271,355.34
-
(2.44)
271,352.90
For the year ended
March 31, 2021
149,165.29
(72.64)
-
149,092.65
d) Trade Receivables, Contract Balances
For Trade Receivables, Refer note no. 16. Further, the Group has no contracts where the period between the transfer of the
promised goods or services to the customer and payment terms by the customer exceeds one year. In light of above;
-
-
it does not adjust any of the transaction prices for the time value of money, and
there is no unbilled revenue as at March 31, 2022.
Further, the Group doesn’t have any contract liabilities as at March 31, 2022 and March 31, 2021
e) Variable Consideration associated with Sales: 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.
f) Disclosure in respect of Export Incentive (Holding Group) Under the Remission of Duties and Taxes on Export Products
(RoDTEP), the Group is eligible to claim a government grant in the form of refunds of embedded taxes and duties. The
scheme has been effective since January 1, 2021. However, the incentive rates were not notified by the authorities till the
last day of the previous year i.e March 31, 2021 .For the relevant period from January 1, 2021 to March 31, 2021, the Group
had recognised income towards RoDTEP basis estimated calculations and pending notification of the rates.
The Ministry of Textiles vide press release dated July 14, 2021 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 March
229
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
8, 2019, on exports. The Ministry of Textiles has decided to continue the scheme of RoSCTL up to March 31, 2024.
Pursuant to the aforesaid press release, the Group has recognised the RoSCTL income for the period from April 1, 2021
to June 30, 2021 in line with the earlier rates notified and additionally also recognised ` 337.21 Lakhs in the quarter ended
June 30, 2021 being the balance income to the extent previously not recognised during the fourth quarter of the financial
year 2020-2021 i.e; January 1, 2021 to March 31, 2021.
g) The group doesn’t have any sales to related party in the consolidated financial statement.
28 OTHER INCOME
Particulars
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
Interest Income
- On fixed deposits
- On loans and advances
- 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)
- Dividend Income
- Excess provision written back
- Sundry balances written back
- Gain on termination of lease
- Miscellaneous income
117.46
117.75
67.36
742.30
523.24
-
16.44
16.34
573.58
25.62
160.91
340.60
50.38
593.94
3,345.94
103.92
173.99
59.83
770.91
458.01
64.66
36.78
16.61
255.85
-
-
133.67
-
276.24
2,350.49
29 COST OF RAW MATERIAL CONSUMED
Particulars
Raw Material
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
30 PURCHASE OF STOCK IN TRADE
Particulars
Purchases during the year
230
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
13,670.22
135,350.71
465.08
149,486.01
32,955.06
116,530.95
12,245.71
69,336.18
(174.43)
81,407.45
13,670.22
67,737.23
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
9,337.91
9,337.91
For the year ended
March 31, 2022
40,790.23
40,790.23
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
31 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE
Particulars
Inventories at the beginning of the year
Work-in-progress
Finished goods
Scrap Stock
Inventories at the end of the year
Work-in-progress
Finished goods
Scrap Stock
Impact of exchange fluctuation & re-instatement
(Increase) / decrease in inventory (A-B+C)
32 EMPLOYEE BENEFITS EXPENSE
Particulars
Salaries, Wages & Bonus
Contribution to Provident and Other funds
Gratuity expense (Refer note 39)
Compensated absences
Staff Training & Welfare Expenses
33 FINANCE COSTS
Particulars
Interest Expense
- On Term loans,Cash Credit & Working Capital Facilities
- Delayed Payment of Taxes
- lease liabilities
Unwinding of discount on security deposit
Other borrowing cost
34 DEPRECIATION AND AMORTISATION EXPENSE
Particulars
Depreciation of - Property, plant and equipment (Refer note no. 4)
Depreciation 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)
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
(A)
(B)
9,637.71
4,060.98
166.84
13,865.53
12,466.08
7,888.48
41.82
20,396.38
271.98
(6,258.87)
12,212.16
1,611.09
-
13,823.25
9,637.71
4,060.98
166.84
13,865.53
(142.06)
(184.34)
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
30,727.62
578.86
413.62
591.18
223.57
32,534.85
For the year ended
March 31, 2022
43,310.54
1,002.40
421.73
408.04
719.39
45,862.10
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
2,637.31
5.82
846.80
14.09
1,156.36
4,660.37
2,585.82
1.51
837.64
40.24
660.13
4,125.34
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
2,722.09
86.77
39.89
1,561.80
4,410.55
For the year ended
March 31, 2022
3,027.13
82.20
30.53
1,693.82
4,833.68
231
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22 NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
35 OTHER EXPENSES
Particulars
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)
Sundry Balances written off
Loss allowance for doubtful debts and advances
Corporate social responsibility
Foreign Exchange Fluctuation
Miscellaneous Expenses
Total
36 EXCEPTIONAL ITEMS
Particulars
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
15,129.20
1,011.51
1,843.21
310.24
71.06
544.76
3,840.85
582.92
For the year ended
March 31, 2022
28,627.46
1,662.03
2,587.39
478.61
104.66
1,259.16
7,344.39
1,437.97
162.32
75.72
1,325.23
395.77
6,106.97
452.16
1,472.21
1,193.61
134.63
554.86
336.93
80.54
364.31
4,213.43
60,370.36
75.12
7.18
866.88
524.45
3,893.71
385.14
619.65
422.45
90.98
153.19
278.86
27.10
-
2,932.88
33,611.35
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
1,035.93
For the year ended
March 31, 2022
(644.99)
-
(30.00)
3.17
(671.82)
(2,335.15)
-
33.91
(1,265.31)
Profit on sale of property, plant and equipment and investment property (Refer Note
'a' below)
Enhanced Compensation on land acquisition by NHAI
Impairment of investment in subsidiaries written back(Refer Note 9 (d))
Investment written off (Refer note 9 (d))
a) The figures in bracket above represents income/ profit.
37 COMPONENTS OF OTHER COMPREHENSIVE INCOME
Particulars
A (i) Items that will not be reclassified to profit or loss
Re-measurement gains/ (losses) on defined benefit plans
Income tax expense
B (i) Items that will be reclassified to profit or loss
Foreign exchange translation reserve
Fair valuation of investment in mutual fund
Hedging Reserve through OCI
Income tax expense
232
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
(100.97)
(20.48)
1,242.11
(28.98)
419.03
(105.46)
1,405.26
(48.22)
(23.22)
(825.45)
173.25
979.45
(342.72)
(86.91)
PEARL GLOBAL INDUSTRIES LIMITED NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
38 EARNINGS PER SHARE (EPS)
Particulars
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 ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
1,727.11
21,663,937
For the year ended
March 31, 2022
6,814.64
21,663,937
` 10
31.46
` 10
7.97
39 GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS
a) Defined contribution plans
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 Group’s contribution to defined
contribution plan.
Particulars
Employer's Contribution to Provident Fund/ Pension Fund
Employer's Contribution to Employee State Insurance
Employer's Contribution to Welfare Fund
Total
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
433.40
138.43
7.03
578.86
For the year ended
March 31, 2022
792.01
197.77
12.62
1,002.40
The contribution payable to these schemes by the Group are at the rates specified in the rules of the schemes.
b) Employee Benefit Obligation in case of Pearl Global HK Limited
Policy for the Group’s operation in the Republic of Indonesia
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 recognised as income or expense when the net cumulative unrecognised 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 amortised over the period until the benefits
concerned become vested.
Policy for the Group’s operation in the Socialist Republic of Vietnam
The severance allowance for employees is accrued at the end of each reporting period for all employees having worked at
the Group for full 12 months and above. Working time serving as the basis for calculating severance allowance shall be the
total actual working time subtracting the time when the employees have made unemployment insurance contributions as
prescribed by law, and the working time when severance allowance has been paid to the employees. The allowance made
for each year of service equals to a half of an average monthly salary under the Vietnamese Labour Code, Social Insurance
Code and relevant guiding documents. The average monthly salary used for calculation of severance allowance shall be
adjusted to be the average of the 6 consecutive months nearest to the date of the financial statements at the end of each
reporting period. The increase or decrease in the accrued amount shall be recorded in the statement of profit or loss or
other comprehensive income.
233
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Policy for the Group’s operation in the Hong Kong Special Administrative Region of the People’s Republic of China
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.
c) Defined benefit plans
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” recognises 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.
i)
Gratuity scheme
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. The gratuity is funded in current year for all the units and maintained by Life
Insurance Corporation of India . Till previous financial year 2020-21, the status of gratuity was as under:
a) Gratuity in case of Gurgaon Division was funded & maintained by Life Insurance Corporation of India
b) Gratuity in case of Chennai & Banglore Division was unfunded.
ii) Other long term employee benefits
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.
d) The following tables summarise 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.
234
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Change in benefit obligation
Particulars
Opening defined benefit obligation
Interest cost
Service cost
Past Service cost
Benefits paid
Foreign currency translation reserve
Actuarial (gain) / loss on obligations
Present value of obligation as at the end of the year
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity
Gratuity
(Funded)
(Unfunded)
1,068.15
78.36
196.94
(108.82)
(114.75)
43.69
182.33
1,345.92
929.10
69.78
207.89
-
(199.61)
-
(90.40)
916.76
As at March 31, 2021
Gratuity
(Funded)
654.60
44.29
89.46
-
(92.36)
-
(41.19)
654.80
Gratuity
(Unfunded)
1,209.60
87.27
272.13
(54.93)
(226.61)
(23.54)
78.57
1,342.49
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:
Cost for the year included under employee benefit
Particulars
Current service cost
Past service cost
Interest cost
Expected return on plan assets
Actuarial (gain) / loss
Net cost
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity
Gratuity
(Funded)
(Unfunded)
196.94
(108.82)
78.36
-
-
166.50
207.89
-
69.78
(22.42)
-
255.23
As at March 31, 2021
Gratuity
(Funded)
89.46
-
44.29
(24.55)
-
109.20
Gratuity
(Unfunded)
272.13
(54.93)
87.27
-
-
304.47
f) Changes in the fair value of the plan assets are as follows::
(Amount in ` Lakhs, unless otherwise stated)
Particulars
Fair value of plan assets at the beginning
Expected return on plan assets
Contributions
LIC charges
Benefits paid
Actuarial gains / (losses) on the plan assets
Fair value of plan assets at the end
As at March 31, 2022
Gratuity
Gratuity
(Funded)
(Unfunded)
-
-
-
As at March 31, 2021
Gratuity
(Funded)
363.22
24.55
4.43
Gratuity
(Unfunded)
-
-
-
-
-
-
(92.36)
(10.84)
289.01
-
-
-
298.57
22.42
22.70
(4.37)
(57.04)
(9.03)
273.25
g) Detail of actuarial gain/loss recognised in OCI is as follows:
Particulars
Actuarial (gain) / loss for the year – obligation
Actuarial (gain) / loss for the year - plan assets
Total (gain) / loss for the year
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity
Gratuity
(Funded)
(Unfunded)
182.33
-
182.33
(90.40)
9.03
(81.36)
As at March 31, 2021
Gratuity
(Funded)
(41.19)
10.84
(30.35)
Gratuity
(Unfunded)
78.57
-
78.57
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.
235
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
h) Net (assets) / liabilities recognised in the Balance Sheet and experience adjustments on actuarial gain / (loss) for
benefit obligation and plan assets -
Particulars
Present value of obligation
Less: Fair value of plan assets
Net assets /( liability)
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity
Gratuity
(Funded)
(Unfunded)
1,345.92
-
(1,345.92)
916.76
273.25
(643.51)
As at March 31, 2021
Gratuity
(Funded)
654.80
289.01
(365.79)
Gratuity
(Unfunded)
1,342.49
-
(1,342.49)
i) A quantitative sensitivity analysis for significant assumptions is as shown below:
Particulars
A. Discount rate
Effect on DBO due to increase in Discount Rate (1% in funded and
0.5% in unfunded)
Effect on DBO due to decrease in Discount Rate (1% in funded and
0.5% in unfunded)
B. Salary escalation rate
Effect on DBO due to increase in Salary Escalation Rate (1% in funded
and 0.5% in unfunded)
Effect on DBO due to decrease in Salary Escalation Rate (1% in funded
and 0.5% in unfunded)
(Amount in ` Lakhs, unless otherwise stated)
As at March 31, 2022
Gratuity
Gratuity
(Funded)
(Unfunded)
As at March 31, 2021
Gratuity
(Funded)
Gratuity
(Unfunded)
(93.76)
846.99
(61.46)
775.66
111.49
1,006.31
71.91
1,002.92
113.23
1,009.06
72.51
999.87
(96.65)
848.19
(63.00)
773.73
C.Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated for
group as a whole.
j)
Risk
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) Refer respective standalone financial statements of Holding Company and the Subsidiary Companies forming part of the
Group for Maturity Profile of Defined Benefit obligation.
40 CAPITAL MANAGEMENT
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:
236
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Borrowings (Refer to note 21 & 21A)
Interest accrued but not due on borrowings (Refer note no. 22)
Less: cash and cash equivalents (Refer to note 17)
Net debt (A)
Equity share capital (Refer to note 19)
Other equity (Refer to note 20)
Total Capital (B)
Capital and net debt (A+B=C)
Gearing ratio (A/C)
As At
March 31, 2022
56,414.18
93.59
(11,685.07)
44,822.70
2,166.39
57,727.53
59,893.93
104,716.62
42.80%
As At
March 31, 2021
36,582.96
23.26
(9,471.34)
27,134.88
2,166.39
49,555.07
51,721.46
78,856.34
34.41%
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2022
and March 31, 2021.
41 DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE
I) Hedge Accounting
(i) 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.
Cash Flow Hedges
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.
(ii) The fair value of derivative financial instruments is as follows:
Particulars
Fair value of foreign currency forward exchange contract designated as
hedging instruments
(Amount in ` Lakhs, unless otherwise stated)
Liabilities
March 31, 2021
12.34
Assets
March 31, 2022
406.69
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, 2022 were assessed to be highly
effective and unrealised profit of ` 419.03 Lakhs, with a deferred tax liability of ` 105.46 Lakhs relating to the hedging
instruments, is included in OCI. (March 31, 2021: Unrealised profit of ` 979.45 Lakhs with a corresponding deferred tax
liability of ` 342.72 Lakhs).
(iii) Maturity Profile: The following table includes the maturity profile of the foreign exchange forward contracts:
Particulars
As at March 31, 2022 (in `)
Notional amount (in USD)
Average forward rate (USD/`)
As at March 31, 2021 (in `)
Notional amount (in USD)
Average forward rate (USD/`)
Less than
1 month
8,031.01
104.99
76.49
-
-
-
1 to 3
months
12,657.88
165.36
76.55
-
-
-
3 to 6
months
19,245.30
249.00
77.29
-
-
-
6 to 9
months
14,329.11
183.68
78.01
-
-
-
9 to 12
months
8,296.72
105.50
78.64
2,278.85
30.00
-
Total
62,560.03
808.53
77.37
2,278.85
30.00
75.96
(iv) The impact of the hedging instruments on the balance sheet is as follows:
The line item in Balance Sheet where Hedge instrument is disclosed under other current financial assets (March 31 2021:
Other current Financial Liabilities). The changes in fair value of forward exchange contract are disclosed as under:
237
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Foreign currency risk forward contract- As at March 31, 2022 (Asset)
Foreign currency risk forward contract- As at March 31, 2021 (Liability)
(Amount in ` Lakhs, unless otherwise stated)
Amount (`)
406.69
979.45
(v) The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows:
Particulars
Total hedging gain/
(loss) recognised
in OCI
Line item in
Statement of profit
and loss
As at March 31, 2022
Highly probable forecast sales
As at March 31, 2021
Highly probable forecast sales
(vi) Impact of hedging on equity
419.03
979.45
Cash Flow Hedge
Reserve (OCI)
Cash Flow Hedge
Reserve (OCI)
(Amount in Lakhs, unless otherwise stated)
Line item in
Statement of
profit and loss
Amount
reclassified from
OCI to profit or
loss.
907.55
19.15
Revenue from
Operations
Revenue from
Operations
Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income:
Particulars
As at March 31, 2022
Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts
Amount reclassified to profit & loss
Tax effect
As at March 31, 2021
Effective Portion of Changes in fair Value arising from Foreign Exchange Forward Contracts
Amount reclassified to profit & loss
Tax effect
(Amount in ` Lakhs, unless otherwise stated)
Cash Flow Hedge
Reserve (CFHR)
419.03
(907.55)
907.55
(105.46)
979.45
(19.15)
19.15
(342.72)
(vii) Valuation Technique
The Group enters into derivative financial instruments which are valued using valuation techniques which employs the
use of market observable inputs. The most frequently applied valuation techniques include forward pricing models, using
present value calculations. Where quoted market prices are not available, fair values are based on Management best
estimates, which are arrived at by the reference to market prices.
II) Particulars of Unhedged foreign currency exposures:
Particulars
As At March 31, 2022
As At March 31, 2021
(Amount in ` Lakhs, unless otherwise stated)
Foreign currency receivable
Foreign currency payable
Foreign Currency
in Lakhs
-
26,535.38
53.96
-
-
1,66,239.38
-
HKD
IDR
BDT
GBP
SGD
VND
CNY
USD
HKD
-
IDR
80,992.23
VND 15,80,358.81
EUR
-
BDT
1,056.77
` in Lakhs
Foreign Currency
in Lakhs
6.17
31,013.67
-
0.01
0.00
7,137.67
0.29
219.21
159.43
27,825.03
203,645.44
0.03
-
- HKD
140.35 IDR
48.41 EUR
- GBP
- SGD
551.40 VND
- CNY
USD
- HKD
428.40 IDR
5,241.86 VND
- EUR
948.22 USD
` in Lakhs
58.37
156.56
-
0.77
0.01
22.79
3.28
16,111.82
1,507.30
140.46
650.10
2.27
-
III)
In respect of the derivative contracts entered into by the Group. The Management asessess no material foreseeable losses
as at the reporting date.
238
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
42 FAIR VALUE MEASUREMENTS
I
Financial instruments
a) Financial instruments by category
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.
b) Fair value hierarchy
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:
As at March 31, 2022
Particulars
in key man
Financial assets measured
at fair value
Investment in equity shares
(Quoted)
Investment in mutual funds
Investment in Units and
Debt instrument
Investments
insurance policy
Financial Assets at Fair
Value through OCI - Cash
Flow Hedge
Financial assets not
measured at fair value
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
(Amount in ` Lakhs, unless otherwise stated)
FVOCI
Carrying amount
FVTPL Financial
Assets -
amortised
cost
Financial
Liabilities -
amortised
cost
Total
carrying
amount
Level 1
Fair value
Level 2 Level 3
Total
-
873.50
-
1,908.49
532.26
-
2,202.21
406.69
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.63
41.36
-
3,543.10
912.92
62.41
-
-
-
-
873.50
873.50
-
-
873.50
532.26
532.26
1,908.49 1,308.09
-
600.41
-
532.26
- 1,908.49
-
2,202.21
- 2,202.21
- 2,202.21
-
406.69
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.63
41.36
-
3,543.10
912.92
62.41
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
239
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
FVOCI
-
Carrying amount
FVTPL Financial
Assets -
amortised
cost
273.70
-
Financial
Liabilities -
amortised
cost
-
(Amount in ` Lakhs, unless otherwise stated)
Level 1
Fair value
Level 2 Level 3
Total
Total
carrying
amount
273.70
-
-
-
-
-
-
-
- 36,662.31
- 11,685.07
3,292.39
-
31.47
-
4,517.39 1,405.76 56,506.36
-
36,662.31
-
-
- 11,685.07
-
3,292.39
-
-
-
31.47
- 62,429.51 2,713.85 2,802.62
-
-
-
-
-
-
-
-
-
-
-
-
- 5,516.46
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
56,414.18
8,045.15
247.44
-
93.59
56,414.18
8,045.15
247.44
-
93.59
26.24
43,868.79
92.90
684.85
26.24
-
43,868.79
-
92.90
-
684.85
-
- 109,473.13 109,473.13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(Amount in ` Lakhs, unless otherwise stated)
FVOCI
FVTPL
Carrying amount
Financial
Assets -
amortised
cost
Financial
Liabilities -
amortised
cost
Total
carrying
amount
Fair value
Level 1 Level 2 Level 3
Total
-
335.00
-
2,042.92
754.38
-
2,085.98
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
270.00
1.63
31.04
300.00
3,542.13
-
-
-
335.00
335.00
754.38
2,042.92
-
2,085.98
-
-
-
-
-
-
-
270.00
1.63
31.04
300.00
3,542.13
754.38
2,042.92
2,085.98
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
335.00
-
754.38
- 2,042.92
- 2,085.98
-
-
-
-
-
-
-
-
-
-
-
-
Particulars
Deposits
original
with
maturity of more than 12
months
Trade receivables
Cash and cash equivalents
Other bank balances
Other Financial assets
not
Financial
liabilities
measured at fair value
Borrowings
Lease Liabilities
Security Deposits
Book overdraft
Interest accrued but not due
on borrowings
Unpaid dividends
Trade payables
Creditors for capital goods
Others
As at March 31, 2021
Particulars
Financial assets measured
at fair value
Investment in equity shares
(Quoted)
Investment in mutual funds
Investment in Units and Debt
instrument
Investments in key man
insurance policy
Financial assets not
measured at fair value
Investment in equity shares
(Unquoted)
Investment in preference
shares
Investment in government
securities
Loan to employees
Loan to related parties
Loan to Others
240
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
(Amount in ` Lakhs, unless otherwise stated)
Particulars
FVOCI
FVTPL
Fair value
Level 1 Level 2 Level 3
Total
Carrying amount
Financial
Assets -
amortised
cost
974.99
36.15
Financial
Liabilities -
amortised
cost
-
-
-
-
-
-
-
-
265.69
-
-
-
Total
carrying
amount
974.99
36.15
-
265.69
-
-
-
-
-
-
-
-
-
-
-
-
- 24,217.21
9,471.34
-
2,233.21
-
32.35
-
4,128.90 1,089.38 41,375.74
-
- 24,217.21
-
9,471.34
-
-
2,233.21
-
-
-
32.35
- 46,594.02 5,218.28
12.34
-
-
-
12.34
12.34
-
-
-
-
-
-
-
-
-
12.34
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,582.96 36,582.96
7,394.94
137.28
261.51
23.26
7,394.94
137.28
261.51
23.26
29.75
29.75
24,676.84 24,676.84
203.74
796.14
70,106.42 70,118.77
203.74
796.14
-
-
-
-
-
-
-
-
-
12.34
Security Deposits
Interest accrued but not due
on term deposits
Interest accrued but not due
on loan to related parties
Deposits
original
with
maturity of more than 12
months
Trade receivables
Cash and cash equivalents
Other bank balances
Other Financial assets
not
Financial liabilities measured
at fair value
Financial Liabilites at Fair
Value through OCI - Cash
Flow Hedge
liabilities
Financial
measured at fair value
Borrowings
Lease Liabilities
Security Deposits
Book overdraft
Interest accrued but not due
on borrowings
Unpaid dividends
Trade payables
Creditors for capital goods
Others
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 5,218.28
-
12.34
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12.34
c) 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 2022 and 31 March 2021.
d) Fair value of financial assets and liabilities measured at amortised cost
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)
Fair value of financial assets and liabilities measured at amortised cost
241
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
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) For specific valuation techniques used to value financial instruments, Refer disclosures made in the standalone financials
of Holding Company and Subsidiary companies.
43 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
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.
A. Credit Risk
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.
(i) Trade receivables
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.
(ii) Other Financial Assets: The Group maintains exposure in cash & cash equivalents, term deposits with banks,
investments, advances and security deposits etc. Credit risk from balances with banks, investment in mutual funds
and 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 Group’s maximum
exposure to the credit risk as at March 31, 2022 and March 31, 2021 is majorly the carrying value of each class of
financial assets.
(iii) Risk Exposure of Holding Company in respect of guarantees given as under:
242
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
- Quantitative data about exposure and maturity profile
Guarantee Given to
Standard Chartered Bank,
Hongkong Branch
Details of
Subsidiary
Pearl Global (HK)
Limited
Purpose of
Guarantee
Securing Credit
Facilities
HSBC Bank, Hongkong Branch Pearl Global (HK)
Limited and its step
down subsidiaries
Global
DSSP
Limited and Pearl
Grass
Creations
Limited
Securing Credit
Facilities
Amount as at
March 31, 2022
USD 30.00 Lakhs
equivalent to
` 2,274.30 Lakhs
USD 200.00 Lakhs
equivalent to
` 15,162.00 Lakhs
Guarantee
Valid Upto
February 04, 2023
November 17, 2023
Securing Credit
Facilities
USD 40.00 Lakhs
equivalent to
` 3,032.40 Lakhs
December 31, 2023
- Policy of managing risk: 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. Liquidity risk
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 Group’s 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.
The table below summarises the maturity profile of the financial liabilities based on contractual undiscounted payments.
As at March 31, 2022
Particulars
Less than 3 months
3 to 12 months
1 to 5 years
34,891.47
209.72
41,166.49
897.58
9,139.90
674.03
2,702.30
6.51
12,256.81
2,411.03
-
240.92
> 5 years
126.00
4,749.77
-
-
Total
56,414.17
8,045.15
43,868.79
1,145.02
77,165.26
12,522.74
14,909.36
4,875.77
109,473.13
Particulars
Less than 3 months
3 to 12 months
1 to 5 years
21,023.14
315.11
24,676.84
1,326.75
3,097.49
548.47
-
-
12,000.49
3,128.20
-
137.28
> 5 years
461.84
3,403.17
-
-
Total
36,582.96
7,394.94
24,676.84
1,464.03
47,341.83
3,645.95
15,265.97
3,865.01
70,118.77
243
Borrowings
Lease Liabilities
Trade payables
Other financial
liabilities
Total
As at March 31, 2021
Borrowings
Lease Liabilities
Trade payables
Other financial
liabilities
Total
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
C. Market risk
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, 2022 and March 31, 2021.
i)
Interest rate risk
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.
Interest Rate Sensitivity
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:
Particulars
March 31, 2022
March 31, 2021
Increase or decrease
in basis points
+50
-50
+50
-50
Decrease / (increase)
in profit
23.25
(23.25)
7.34
(7.34)
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.
ii) Foreign currency risk
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.
Particulars
March 31, 2022
March 31, 2021
Changes in
Exchange rate
+5%
-5%
+5%
-5%
Decrease / (increase)
in profit before tax
293.92
(293.92)
(702.67)
702.67
244
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
44 SEGMENT INFORMATION
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, 2022 and March 31, 2021 is as follows:
Particulars
Bangladesh Hong Kong
India
Others Un-allocable
Total Elimination
Total
Segment Sales
Inter Segment Sales
Total Segment Sales
Other Income
Total Segment Revenue
Total Revenue of each
segment as a percentage of
total revenue of all segment
Total Segment Operative
Profit
Depreciation
Total
before Interest & Taxes
Segment
Result
Total EBIT of each segment
as a percentage of total
EBIT of all segment
Net Financing Cost
Income Tax Expenses
Profit for the Year
Segment Assets
Segment Assets as a
percentage
of Total
assets of all segments
Segment Liabilities
Segment Liabilities as
a percentage of Total
Liabilities of all segments
Segment Capital
Employed
Capital
Segment
a
as
Employed
percentage
of Total
capital employed of all
segments
(7,537.81)
87,819.38
(48,996.23)
63,891.55
(67,595.75)
30,292.59
(9,570.62)
94,184.14
(77,166.37)
3,213.98
(2,409.16)
97,398.13
50,248.87
7,185.57 150,026.90
(12,432.90)
(61,526.19)
-
50,160.99
-
(16,732.86)
50,248.88
95,004.96 200,187.89
(12,432.90)
(78,259.04)
-
693.29
-
(568.49)
95,027.52 200,881.19
50,248.88
(56,531.17) (78,827.53) (79,575.53) (12,432.90)
11.33
(5.47)
(56,534.04)
22.55
2.88
45.29
(34.67)
21.96
(35.00)
21.42
(24.86)
271,352.90
(149,092.65)
168,272.96 168,272.96
(75,299.70) (75,299.70)
439,625.87 168,272.97
(224,392.36) (75,299.70)
583.90
(624.29)
443,555.70 168,856.87
271,352.90
-
-
- (149,092.65)
-
-
-
-
-
271,352.90
-
(149,092.65)
-
3,345.94
-
(2,350.49)
-
-
274,698.83
- (227,367.13) (75,923.99) (151,443.14)
-
-
-
-
3,929.83
(2,974.77)
100.00
(100.00)
-
-
4,853.35
(3,133.27)
3,015.49
(2,633.31)
8,037.46
(3,294.86)
1,449.37
(1,595.80)
3,403.99
(1,537.47)
25.71
(29.22)
1,160.98
(664.45)
1,854.52
(1,968.87)
14.00
(37.42)
1,772.78
(1,813.42)
6,264.68
(1,481.44)
47.31
(28.16)
-
-
-
-
-
-
32,643.76
-
-
-
-
-
-
-
-
-
-
-
-
67,647.70
51,896.51
(23,188.35) (33,247.97) (61,996.35)
37.99
(47.91)
29.15
(25.69)
18.33
(17.92)
2,169.55
(610.01)
450.55
(336.88)
1,719.00
(273.13)
12.99
(5.20)
-
-
-
-
-
-
19,772.71
(4,524.40)
11.10
(3.50)
-
-
-
-
-
-
-
-
18,075.87
(9,671.46)
4,833.68
(4,410.55)
13,242.19
(5,260.91)
100.00
(100.00)
-
-
-
-
-
-
6,101.17
(6,441.48)
3.43
(4.98)
-
-
-
-
-
-
178,061.85
(129,398.56)
100.00
(100.00)
24,197.69
(15,888.81)
4,756.78
23,721.13
(6,306.54) (16,857.27)
7,010.31
(654.24)
56,888.69
(36,676.40)
116,574.61
(76,383.26)
20.76
(20.80)
4.08
(8.26)
20.35
(22.07)
6.01
(0.86)
48.80
(48.02)
100.00
(100.00)
8,446.07
43,926.57
47,139.72
(7,299.54) (26,941.43) (45,139.08)
12,762.40
(3,870.16)
(50,787.53)
30,234.92
61,487.24
(53,015.29)
13.74
(13.77)
76.67
(50.82)
71.44
(85.14)
20.76
(7.30)
(82.60)
57.03
100.00
(100.00)
-
-
-
-
-
-
-
-
18,075.87
(9,671.45)
4,833.68
(4,410.55)
13,242.19
(5,260.91)
-
-
4,660.37
-
(4,125.34)
-
1,570.94
-
612.76
-
7,010.88
-
(1,748.32)
-
-
178,061.85
- (129,398.56)
-
-
-
-
-
-
-
-
-
-
-
-
116,574.61
(76,383.26)
-
-
61,487.24
(53,015.29)
-
-
245
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Particulars
Bangladesh Hong Kong
India
Others Un-allocable
Total Elimination
Total
1,141.60
(946.25)
28.00
(29.64)
683.20
(1,544.45)
16.76
(48.37)
871.18
(691.89)
21.37
(21.67)
1,381.57
(10.42)
33.88
(0.33)
-
-
-
-
4,077.57
(3,193.01)
100.00
(100.00)
-
-
-
-
4,077.57
(3,193.01)
-
-
Capital Expenditure
as
Capital
Segment
a
Expenditure
percentage
of Total
capital expenditure of all
segments
b) The Group revenue from sale of garments to external customer are as follows:
Particulars
Local Customers
Foreign Customers
Total
c) Non- current assets are located within India and outside India:
Particulars
Non Current Assets
- within India
- outside India
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
2,172.02
439.41
260,759.36
145,422.28
262,931.37
145,861.69
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
22,754.36
30,636.79
23,670.78
29,646.63
d) Revenue from major customer: During the year the Group generates 90% of its external revenues from 15 customers
(March 31, 2021: 14 customers).
45 CONTINGENT LIABILITIES AND COMMITMENTS
a) Contingent liabilities (To the extent not provided for)
I
‘The respective companies have reviewed all its pending claims, litigations and other proceedings and has adequately
provided for wherever required. However, wherever it is difficult for the respective companies to estimate the timings
of cash outflows, if any, in respect of the below as it is determinable only on receipt of judgement/decisions pending
with various forums/authorities, the Group has disclosed the same as Contingent Liabilities (pending resolution of the
respective proceedings).
The Group does not expect the outcome of these proceedings to have a material or adverse effect on financial position
of the Company. Also, the Group does not expect any reimbursements in respect of the below contingent liabilities.
Particulars
In respect of Holding Company:
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
-Tax Demand as per Sec 154 and Sec 16(1) of Income Tax Act , 1961
(with respect to Assessment Year 2015-16) - Rectification application
has been filled with ITAT
-Tax Demand as per Sec 35(1) of Wealth Tax Act, 1957 (with respect to
Assessment Year 2015-16- Rectification u/s 154- Assessing Officer)
-Tax Demand as per Sec 250 of Income Tax Act, 1961 (with respect to
Assessment Year 2016-17) - Rectification application has been filled
with ITAT
15.57
8.34
0.04
3.49
-
38.83
246
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
(Amount in ` Lakhs, unless otherwise stated)
Particulars
-Tax Demand as per Sec 143(3) of Income Tax Act, 1961 (with respect
to Assessment Year 2017-18) - Rectification application has been filled
with CIT(A)
-Tax Demand as per Sec 115-O of Income Tax Act, 1961 (with respect
to Assessment Year 2017-18) - Rectification application has been filled
with Assessing Officer
-Tax Demand as per Sec 154 of Income Tax Act, 1961 (with respect to
Assessment Year 2018-19) - Appeal pending before CIT(A)
-Demand as per TDS (TRACES) portal - CPC
As at
March 31, 2022
As at
March 31, 2021
3.83
16.61
33.30
5.70
4.65
-
-
8.71
(ii) Several Legal Cases of labour pending at labour Court, Civil Court and High Court. The Group has assesed and
believe that none of these cases, either individually or in aggregate, are expected to have any material adverse
effect on its financial statements. However, Since it is difficult for the Group to estimate the timings of the cash
outflows, if any, no further provision or seperate disclosure is made in books of accounts.
Particulars
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
II
Irrevocable letter of credit (net of margin) outstanding with banks
14,630.34
13,678.44
III Bank Guarantee given to government authorities
214.48
204.93
IV Counter Guarantees given by the Group to the Sales Tax Department
over which Key Managerial Personnel have Significant influence
- For enterprise
- For others
1.00
0.50
1.00
0.50
V
The Group has given the corporate guarantees to banks on behalf of its foreign subsidiaries [Refer note no. 43 A(iii)]..
b) Commitments
Particulars
Capital Commitment: Estimated amount of contracts remaining to be
executed on the capital account (Net of capital advances of ` 228.43 Lakhs
( March 31, 2021: ` 185.04))
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2022
As at
March 31, 2021
420.11
-
The Group does not have any other long term Commitments or material non cancellable contractual commitments, which
may have a material impact on the financial statement.
247
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
46 RELATED PARTY TRANSACTIONS
a) List of related parties
Nature of Relationship
Subsidiary (Direct / Indirect)
Enterprise over which Key Managerial Personnel
exercise Significant influence
Key Management Personnel (KMP) & their relative
248
Name of the Related Party
Domestic (Direct)
Pearl Apparel Fashions Limited (Formerly known as Lerros
Fashions India Limited) (Under Liquidation)
Pearl Global Kaushal Vikas Limited (Formerly known as Pixel
Industries Limited)
SBUYS E-Commerce Limited
Overseas (Direct)
Pearl Global Fareast Limited
Pearl Global (HK) Limited
Norp Knit Industries Limited
Pearl Global USA, Inc.
Overseas (Indirect)
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
(Liquidated on 05.08.2021)
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
PDS Limited (Formerly known as PDS Multinational Fashions
Limited)
Mr. Deepak Seth
Mr. Pulkit Seth
Mrs. Shifalli Seth
Mr. Pallab Banerjee
Mr. Vinod Vaish
Mr. Uma Shankar Kaushik
Mr. Shailesh Kumar
Mr. Deepak Kumar
Mr. Raghav Garg
Mr.Kashmir Singh Rathour
Mr. Narendra Kumar Somani
Mr. Sandeep Sabharwal
Mr. Mayank Jain
Mr. Ravi Arora
Chariman
- Vice Chairman
- Managing Director
- Whole -Time Director
- Joint Managing Director (from
01.10.2021)
Whole-Time Director (till
30.04.2020)
Whole-Time Director (from
28.07.2020 till 10.01.2022)
Whole-Time Director (from
07.10.2020)
Whole-Time Director (from
14.02.2022)
Chief Financial Officer (till
30.06.2020)
Chief Financial Officer (from
28.07.2020 till 20.04.2021)
Chief Financial Officer (w.e.f
21.06.2021)
Company Secretary (till
15.02.2021)
Company Secretary (from
21.06.2021 to 08.11.2021)
Company Secretary (w.e.f
14.02.2022)
PEARL GLOBAL INDUSTRIES LIMITED NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
b) Disclosure of Related Parties Transactions:
(i) Enterprise over which KMP has Significant Influence
Particulars
Dividend Received
Expenses paid by them on behalf of the Company
Loan Received Back
Interest income
Closing Balance
Particulars
Loan receivable (including interest)
(ii) Key Management Personnel (KMP)
Particulars
Remuneration paid
EPF paid
Expenses incurred on behalf of the Company
Directors sitting fees
Closing Balance
Particulars
Trade Payable - Payable to KMP
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
-
2.25
-
30.05
For the year ended
March 31, 2022
7.87
2.87
300.00
28.68
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2021
300.00
As at
March 31, 2022
-
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
173.81
0.52
39.58
0.50
For the year ended
March 31, 2022
498.21
2.93
40.91
0.60
(Amount in ` Lakhs, unless otherwise stated)
As at
March 31, 2021
-
As at
March 31, 2022
14.40
C. Disclosure of Material Transactions: Related Parties having more than 10% interest in each transaction in the ordinary
course of business.
(i) Enterprise over which KMP has significant influence
Particulars
Dividend Received
PDS Multinational Fashion Limited
Expenses paid on behalf of the Company
PDS Multinational Fashion Limited
Interest income
PDS Multinational Fashion Limited
Loan received back
PDS Multinational Fashion Limited
Closing Balance
Loan receivable (including interest)
PDS Multinational Fashion Limited
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
7.87
2.87
28.68
300.00
-
2.25
30.05
-
-
300.00
249
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
(ii) Key Management Personnel
Particulars
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
Remuneration paid
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Uma Shankar
Mr. Deepak Kumar
Mr. Mayank Jain
Mr. Narendra Somani
Mr. Kumar Shailesh
Mr. Pallabh Banarjee
Mr. Ravi Arora
Expenses paid by the Company on their behalf
Mr.Pulkit Seth
Mrs. Shifalli Seth
Mr. Deepak Kumar
Mr. Mayank Jain
Mr. Kashmir Rathour
Mr. Pallabh Banarjee
Expenses incurred on behalf of the Company
Mr. Uma Shankar
Mr. Sandeep Sabharwal
Mr. Raghav Garg
Mr. Vinod Vaish
Mr. Mayank Jain
Mr. Narendra Somani
Mr. Kumar Shailesh
Mr. Pallabh Banarjee
Directors sitting Fees:
Mr. Deepak Seth
255.04
37.50
22.50
6.58
9.72
42.00
18.00
102.72
4.15
0.11
0.11
0.05
0.14
-
2.52
13.32
-
-
-
6.00
14.43
5.31
1.85
0.60
83.40
34.75
14.95
-
9.26
20.34
11.12
-
-
0.11
0.11
-
0.14
0.16
-
4.71
6.04
13.36
13.88
-
-
1.58
-
0.50
iii) Terms and conditions of transactions with related parties
All the transaction with the related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year end are unsecured and interest free except the interest bearing loan
and settlement occurs in cash.
iv) The remuneration of Key managerial Personnel does not include amount in repect of gratuity and leave encashment
payable as the same are not determinable as individual basis for the KMP. The liabilities of gratuity and leave
encashment are provided for Company as whole on the basis of acturial valuation.
v) Personal Gurantee given by Mr. Deepak Seth (Promoter Director) and Mr. Pulkit Seth (Managing Director) against the
Borrowings (Refer note 21)..
vi) 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 Lakhs equivalent to ` 2,274.30 Lakhs ( March 31, 2021 USD
30.00 Lakhs equivalent to ` 2,205.00 Lakhs).
To Hongkong and Shanghai Banking Corporation Limited, Hongkong Branch for securing credit facilities to
its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong and its step down subsidiary DSSP Global
Limited and Pearl Grass Creations Limited for USD 200.00 Lakhs equivalent to ` 15,162.00 Lakhs (March 31,
2021: USD 200.00 Lakhs equivalent to ` 14,700.00 Lakhs).
To Hongkong and Shanghai Banking Corporation Limited, Hongkong Branch for securing credit facilities to
its wholly owned subsidiary Pearl Global (HK) Limited, Hong Kong and its step down subsidiary DSSP Global
250
PEARL GLOBAL INDUSTRIES LIMITED
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Limited and Pearl Grass Creations Limited for USD 40.00 Lakhs equivalent to ` 3,032.40 Lakhs (March 31, 2021:
USD Nil equivalent to ` Nil).
•
To Standard Chartered Bank, Bangladesh Branch for securing credit facilities to its subsidiary Norp Knit Industries,
Bangladesh for BDT Nil equivalent to ` Nil (March 31, 2021: BDT 9,000.00 Lakh equivalent to ` 7,636.03 Lakhs).
Above Corporate Guarantees have been given for business purpose.
47 DISCLOSURES MANDATED BY SCHEDULE III OF COMPANIES ACT 2013, BY WAY OF ADDITIONAL INFORMATION
Particulars
For financial year 2021-22
(Amount in ` Lakhs, unless otherwise stated)
Name of the Entities
Parent:
Pearl Global Industries Limited
Subsidiary:
- Indian
Pearl Global Kausal Vikas
Limited
Pearl
Limited
SBUYS E-Commerce Limited
Fashions
Apparel
- Foreign
Norp Knit Industries Limited
Pearl Global Far East Limited
Pearl Global (HK) Limited
Subtotal
Intercompany Elimination &
Consolidation Adjustments
Total
Non Controlling
subsidiaries
Grand Total
Interest
in
Net Assets i.e. total
assets minus total
liabilities
Share in profit /(loss)
Share in other
Comprehensive
Income
Amount
As a % of
consolidated
net assets
As a % of
consolidated
Profit
Amount
Amount
As a % of
consolidated
Profit
Share in total
Comprehensive
Income
As a % of
consolidated
Profit
Amount
57.35 34,348.05
38.74 2,715.78
18.52
260.26
35.36 2,976.04
(0.00)
(0.31)
(0.01)
(0.43)
-
-
(0.01)
(0.43)
0.01
3.63
0.04
2.83
0.00
0.05
0.03
2.88
0.08
49.67
0.70
48.93
-
-
0.58
48.93
26.09 15,626.06
12.25 7,334.02
25.29 15,149.85
- 72,510.99
(21.07) (12,617.07)
27.68 1,940.37
(6.17) (432.39)
38.99 2,733.47
- 7,008.56
2.31
0.03
23.40
10.72
48.68
328.80
150.63
684.02
- 1,423.75
(18.49)
(1.32)
26.96 2,269.17
(3.35) (281.76)
40.61 3,417.49
- 8,432.32
(16.18)
(0.19)
- 59,893.92
- 1,593.33
- 7,010.88
- (196.24)
- 1,405.26
(47.39)
-
- 8,416.14
- (243.63)
- 61,487.25
- 6,814.64
- 1,357.87
- 8,172.51
(b) For financial year 2020-21:
(Amount in ` Lakhs, unless otherwise stated)
Net Assets i.e. total
assets minus total
liabilities
Share in profit /(loss)
Share in other
Comprehensive
Income
Amount
As a % of
consolidated
net assets
As a % of
consolidated
Profit
Amount
Amount
As a % of
consolidated
Profit
Share in total
Comprehensive
Income
As a % of
consolidated
Profit
Amount
60.66 31,372.02
4.43
77.40
(813.05)
706.70
47.19
784.10
Particulars
Name of the Entities
Parent:
Pearl Global Industries Limited
Subsidiary:
- Indian
Pearl Global Kausal Vikas
Limited
Pearl
Limited
Fashions
Apparel
0.00
0.10
(0.04)
(0.65)
-
-
-
-
-
-
-
-
(0.04)
(0.65)
-
-
251
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
(Amount in ` Lakhs, unless otherwise stated)
Particulars
Name of the Entities
SBUYS E-Commerce Limited
- Foreign
Norp Knit Industries Limited
Pearl Global Far East Limited
Pearl Global (HK) Limited
Subtotal
Intercompany Elimination &
Consolidation Adjustments
Total
Non Controlling
subsidiaries
Grand Total
Interest
in
Net Assets i.e. total
assets minus total
liabilities
Share in profit /(loss)
Share in other
Comprehensive
Income
As a % of
consolidated
net assets
0.00
Amount
0.74
As a % of
consolidated
Profit
(0.00)
Amount
(0.01)
As a % of
consolidated
Profit
-
Amount
-
Share in total
Comprehensive
Income
As a % of
consolidated
Profit
(0.00)
(0.01)
Amount
25.82 13,356.89
13.78 7,129.68
23.15 11,975.99
- 63,835.42
(23.42) (12,113.96)
13.27
6.70
231.96
117.17
75.70 1,323.50
- 1,749.37
(1.05)
(0.06)
442.40 (384.53)
176.30 (153.22)
268.15 (233.07)
(64.12)
(22.79)
-
26.22
(9.18) (152.57)
(2.17)
(36.05)
65.63 1,090.43
- 1,685.25
(23.84)
(1.43)
- 51,721.46
- 1,293.82
- 1,748.32
(21.21)
-
-
-
(86.91)
23.84
- 1,661.41
2.63
-
- 53,015.28
- 1,727.11
-
(63.07)
- 1,664.04
48 LEASES
a)
Lease contracts entered by the Group majorly pertains for buildings taken on lease to conduct its business in the ordinary
course. The Group does not have any lease restrictions and commitment towards variable rent as per the contract.
Right-of-use assets: movements in carrying value of assets
Gross Block as at March 31, 2020
Add: Additions during the year
Add: Adjustment on account of addition of prepaid component of security deposit
Add / (Less): Reclassification from PPE on account of adoption of Ind AS 116
(Less): Disposal / adjustments during the year
Add/(Less): Exchange Fluctuation/ Translation
Gross Block as at March 31, 2021
Add: Additions during the year
(Less): Disposal / adjustments during the year
Add/(Less): Exchange Fluctuation/ Translation
Gross Block As at March 31, 2022
Accumulated Depreciation and amortisation :
As at April 01, 2020
Add: Depreciation charge for the year
Add: Security Deposit Amortisation
Add: Reclassification from PPE on account of adoption of Ind AS 116
Add/(Less): Exchange Fluctuation/ Translation
As at March 31, 2021
Add: Depreciation charge for the year
Add: Security Deposit Amortisation
Less: (Disposals) / adjustments during the year
Add/(Less): Exchange Fluctuation/ Translation
As at March 31, 2022
Net Block :
As at March 31, 2022
As at March 31, 2021
In 2021-22, there were no impairment charges recorded for right-of-use assets.
Leases: movements in carrying value of recognised liabilities
As At April 01, 2021
Add: Additions during the year
Add: Interest expense on lease liabilities
252
Buildings
12,159.53
560.59
327.58
(62.60)
(6.58)
(228.54)
12,749.98
3,224.17
(624.32)
333.31
15,683.12
1,433.53
1,528.65
33.15
(12.11)
(35.60)
2,947.62
1,692.61
1.22
(211.37)
84.89
4,514.97
11,168.15
9,802.36
7,394.94
2,270.32
846.80
PEARL GLOBAL INDUSTRIES LIMITED NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
Right-of-use assets: movements in carrying value of assets
Less: Disposal /Adjustments during the year
Less: Repayment of lease liabilities
Add: Exchange Realisation/ Translation
As At March 31, 2022
Non-current lease liabilities
Current lease liabilities
Total lease liabilities
Buildings
(509.59)
(2,049.72)
92.40
8,045.15
7,161.40
883.75
8,045.15
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.
Cash flows from operating activities includes cash flow from short term lease & leases of low value. Cash flows from
financing activities includes the payment of interest and the principal portion of lease liabilities.
Group as a Lessor
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.
49 EVENT OCCURRING AFTER BALANCE SHEET DATE
a) Dividend paid and proposed:
Particulars
(Amount in ` Lakhs, unless otherwise stated)
For the year ended
March 31, 2021
For the year ended
March 31, 2022
Declared for the year:
Interim dividend declared on May 25, 2022 by Pearl Global Industries Limited (India)
for the financial year 2021-22: ` 5 per share (2020-21: ` Nil per share)
(` 5 on 21,663,937 equity shares)
b) Proposed Dividend:
- The directors of PG(HK) proposed final dividend for financial year 2021-22:
$0.16 per share (2020-21: $ Nil per share) which is subject to the approval of
the Group's shareholders at the forthcoming annual general meeting.
- The directors of Pearl Global Fareast Limited proposed final dividend for
financial year 2021-22: $0.42 per share (2020-21: $ Nil per share) which is
subject to the approval of the Group’s shareholders at the forthcoming annual
general meeting.
1,083.20
189.525
379.05
-
-
-
c) On April 22, 2022, the Group acquired a 52.11% equity interest in Alpha Clothing Limited, which engages in the manufacture
of garment products in Bangladesh, at a consideration of ` 801.44 Lakhs (approx). The group has acquired Alpha Clothing
Limited to further expand its production capacity.
d) 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.
253
CORPORATE OVERVIEWSTATUTORY REPORTSFINANCIAL STATEMENTSANNUAL REPORT 2021-22
NOTES
to consolidated financial statements for the year ended March 31, 2022 (Contd.)
50 ESTIMATION OF UNCERTAINTIES RELATING TO THE GLOBAL HEALTH PANDEMIC - COVID-19:
The group has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial statements,
including but not limited to its assessment of liquidity and going concern assumption, the recoverability of recoverability of
carrying amounts of financial and non-financial assets. The group has carried out this assessment based on available internal
and external sources of information upto the date of approval of these financial statements and believes that the impact of
COVID-19 is not material to these standalone financial statements and expects to recover the carrying amount of its assets.
The group will continue to monitor future economic conditions and its consequent impact on the business operations, given
the uncertain nature of the pandemic.
51 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party (Funding Party) with
the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entity identified by
or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
52 DISCLOSURE OF TRANSACTIONS WITH STRUCK OFF COMPANIES
The group did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956 during the financial years.
53
A) No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended
Schedule III:
(a) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
(b) Crypto Currency or Virtual Currency
(c) Relating to borrowed funds:
i) Wilful defaulter
ii) Utilisation of borrowed funds & share premium
iii) Borrowings obtained on the basis of security of current assets
54 Figures have been rounded off to the nearest Lakhs upto two decimal places except otherwise stated.
For & on behalf of Board of Directors of Pearl Global Industries Limited
(Pallab Banerjee)
Managing Director
DIN 07193749
(Pulkit Seth)
Vice-Chairman
DIN 00003044
Place of Signature: Gurugram
Date: May 25, 2022
(Narendra Somani)
Chief Financial Officer
M. No. 092155
(Ravi Arora)
Company Secretary
M. No. ACS - 21187
254
PEARL GLOBAL INDUSTRIES LIMITED
Notes
Notes
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)