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2017-182018-19ANNUALREPORT

48TH

PEARL Polymers LimitedCIN:L25209DL1971PLC005535

CORPORATE INFORMATION

BOARD OF DIRECTORS

Mr. Chand Seth Chairperson & Managing Director Mr. Varun Seth Whole Time Director Mr. Ramesh Mehra Whole Time Director Ms.MeeraJohri Non-ExecutiveIndependentDirector Mr.RaviKumarMehra Non-ExecutiveIndependentDirector Mr.AshishHarishBhuva Non-ExecutiveIndependentDirector

CHIEF FINANCIAL OFFICER COMPANY SECRETARY

Mr.DineshKumarTak Ms.Priyanka Mr. Vineet Gupta w.e.f. 10.06.2019

REGISTERED OFFICE REGISTRAR & SHARE TRANSFER AGENT PearlPolymersLimited MasServicesLimited A-97/2,OkhlaIndustrialArea T-34,2ndFloor,OkhlaIndustrialArea, Phase-II,NewDelhi-110020 Phase-II,NewDelhi-110020 PhoneNo.:011-47385300 PhoneNo.:011-26387281-83 FaxNo.:011-47480746 FaxNo.:011-26387384 E-mail:[email protected] E-mail:[email protected] Website:www.pearlpet.net Website:www.masserv.com

BANKERS AUDITORS AllahabadBank SehgalMehta&Co.,CharteredAccountants IDBIBank 10173/2,BlockNo.15,AbdulAzizRoad13 BankofBaroda W.E.AKarolBagh,NewDelhi-110005

CONTENTS PAGE NO.

NoticeofAnnualGeneralMeeting 3-9

Board's Report and Management’s Discussion & AnalysisReport

10-29

CorporateGovernanceReport 30-43

IndependentAuditor'sReport 44-51

Financial Statements and Notes thereon 52-82

WORKS:

Location(s) AddressMahad B-3/2,M.I.D.C.IndustrialArea,Mahad,Distt.-Raigad,Maharashtra-402309Jigani 13-A,Part-I,JiganiIndustrialArea,Distt.Anekal,Bangalore,Karnataka-562106Baddi KhasraNo512-513,VillageSandholi,P.O.Baddi,Nalagarh,HimachalPradesh-173205PantNagar PlotNo45,Sector-3,VillageKalyanpur,DisttU.S.,Nagar,IIE,Rudrapur,PantNagar,Uttaranchal-263153Guwahati PlotNo10,JagatiLogistic,Distt.Kamrup,VillageSindurghopaGuwahati,Assam–781101

48th AGMDate : 27.09.2019Day : FridayVenue: A-97/2OkhlaIndustrialArea,

Phase-2,NewDelhi-110020

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Remuneration proposed As provided in the resolution Not Applicable

Comparative profile with respect to industry, size of the Company, profile of the position and person

In the present challenging business environment, the duties and responsibilities of Mr. Varun Seth as Whole Time Director has grown manifold. There is a continuous need for formulation of competitive strategies and periodical review for successful implementation and sustained overall development of the Company. He is having vast experience of corporate management and possesses all required competencies.

Not Applicable

Pecuniary relationship directly or indirectly with the Company or relationship with the managerial personnel

Mr. Varun Seth is one of the person forming part of Promoter Group. He is related to Mr. Chand Seth, Chairman & Managing Director of the Company.

Mr. Chand Seth is one of the Promoter of the Company. He is related to Mr. Varun Seth, Whole Time Director of the Company.

Outside Directorships Pacific Pearl Finance & Leasing Ltd

Pearl Flats (India) Ltd

Theta Investment Pvt. Ltd


Pearl Telefonics Ltd


Pacific Pearl Finance & Leasing Ltd

Indo Nippon Chemical Co. Ltd

C. OTHER INFORMATION:

I. Reasons of loss or Inadequate Profits: The Company’s’ operating businesses have been under severe pressure such as increase in crude price, impacting raw material prices and disruptions in industry due to demonetization and regulatory changes which pose a challenge to profitability. Consequently, though there is an increase in the net sales and other income, the Company has posted losses for the year 2017-18. However, the Company may be able to post better results over a period of years and improve its financial health.

II. Steps taken or proposed to be taken for Improvement: The Company is always looking forward to take all such steps and measures including expansion, diversification which are in the best interest of the Company. Though, the prices of raw materials and products are influenced by external factors, the Company is making all possible efforts to improve the margins thereby hopeful of posting better results in the forthcoming years.

III. Expected increase in Productivity and Profits in measurable terms: The Company is continuing its efforts to address the issues of increasing its productivity levels and there by optimizing its profits, despite various constraints faced by the Company. While it is difficult to give precise figures, the above initiatives are expected to improve further the productivity and profitability.

D. Disclosures: The information and disclosures of the remuneration package and committee position held by the Directors and Key Managerial Personnel have been provided in the Corporate Governance Report.

By Order of the Board of DirectorsFor Pearl Polymers Limited

Place: New Delhi PriyankaDate: August 14, 2018 Company Secretary

M. No: ACS-36870Registered Office:A-97/2, Okhla Industrial Area, Phase-II, New Delhi-110020CIN: L25209DL1971PLC005535

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NOTICE is hereby given that the Forty Eighth AnnualGeneral Meeting (“AGM”) of the Members of PearlPolymersLimitedwillbeheldonFriday, the27thdayofSeptember2019,at11.00A.M.atA-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020,theregisteredofficeoftheCompany,totransactthefollowingbusiness:

ORDINARY BUSINESS

1. To receive, consider and adopt the AuditedStandalone Financial Statements of the Companyfor the financial year ended on March 31, 2019together with reports of the Board of Directors’ and the Auditors’ thereon.

2. To appoint a Director in place of Mr. Ramesh Mehra (DIN:00003334),whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.

SPECIAL BUSINESS

3. Re-appointmentofMr.RaviKumarMehraasanIndependentDirectoroftheCompany

To considerand if thoughtfit, topass,withorwithoutmodification(s), the following resolution as Special Resolution:

“RESOLVED THATpursuanttoprovisionsofsection149,152andanyotherapplicableprovisionsoftheCompaniesAct,2013(hereinafterreferredtoasthe‘Act’),theRulesmadethereunderreadwithScheduleIVtotheCompaniesAct,2013andtheapplicableprovisionsoftheSecuritiesand Exchange Board of India (Listing Obligations andDisclosureRequirements)Regulations,2015(hereinafterreferredtoasthe‘ListingRegulations’)andamendmentsthereto (including any statutory modification(s) orre-enactment(s) thereof, for the time being in force),based on the recommendation of the Nomination andRemunerationCommittee and performance evaluation,Mr. Ravi Kumar Mehra (DIN 06882167), who wasappointed as an IndependentDirector by the Board ofDirectors of the Company subject to the approval ofmembersinthe43rdAGMoftheCompanyforatermof5consecutiveyearsandwhosetermofofficeexpiredon25th May,2019isreappointedbytheBoardofDirectorsoftheCompanyatitsMeetingheldon15thMay,2019w.e.f.26thMay,2019subjecttotheapprovalofthemembersinthe AGM and being eligible and in respect of whom the Companyhas receivednoticeunder section160of theCompaniesAct,2013,beandisherebyreappointedasanindependentdirectorontheBoardoftheCompanytoholdofficeforfurther5consecutiveyearsstartingfrom26thMay,2019andendingon25thMay,2024.

RESOLVED FURTHER THAT pursuant to the provisionsof section 149, 197 and other applicable provisions oftheActandtheRulesmadethereunder,Mr.RaviKumarMehra be paid such fees, remuneration and/or profit-related commission as the Board may approve fromtime to time and subject to such limits, prescribed orasmaybeprescribedfromtimetotimebyorundertheCompaniesAct,2013.

RESOLVED FURTHER THAT the Board of Directors/ CompanySecretarybeandisherebyseverallyauthorizedtodoallsuchacts,deeds,mattersandthings,asmaybeconsiderednecessary,properordesirabletogiveeffecttothisresolution.”

4. Re-appointment of Ms. Meera Johri as anIndependentDirectoroftheCompany


“RESOLVED THATpursuanttoprovisionsofsection149,152andanyotherapplicableprovisionsoftheCompaniesAct,2013(hereinafterreferredtoasthe‘Act’),theRulesmadethereunderreadwithScheduleIVtotheCompaniesAct,2013andtheapplicableprovisionsoftheSecuritiesand Exchange Board of India (Listing Obligations andDisclosureRequirements)Regulations,2015(hereinafterreferredtoasthe‘ListingRegulations’)andamendmentsthereto (including any statutory modification(s) orre-enactment(s) thereof, for the time being in force),based on the recommendation of the Nomination andRemunerationCommittee and performance evaluation,Ms.MeeraJohri(DIN06881924),whowasappointedasanIndependentDirectorbytheBoardofDirectorsoftheCompanysubjecttotheapprovalofmembersinthe43rdAGMoftheCompanyforatermof5consecutiveyearsandwhosetermofofficeexpiredon25thMay,2019isreappointedbytheBoardofDirectorsoftheCompanyatitsMeetingheldon15thMay,2019w.e.f.26thMay,2019subjecttotheapprovalofthemembersintheAGMandbeingeligibleandinrespectofwhomtheCompanyhasreceivednoticeundersection160oftheCompaniesAct,2013,beandisherebyreappointedasanindependentdirectorontheBoardoftheCompanytoholdofficeforfurther5consecutiveyearsstartingfrom26thMay,2019andendingon25thMay,2024.

RESOLVED FURTHER THATpursuanttotheprovisionsofsection149,197andotherapplicableprovisionsof theAct and the Rules made thereunder, Ms. Meera Johri be paid such fees, remuneration and/or profit-related

NOTICE TO MEMBERS

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B. PERQUISITES AND OTHER STATUTORY BENEFITS

1. Housing: Expenditure by the Company on hiring furnished/unfurnished accommodation subject to lease rent not exceeding one month basic salary. The value of benefit will be determined as per the Income Tax Rules. Provided that not more than 50% of the accommodation provided to the appointee shall be used and maintained for office purpose. The lease rent shall be apportioned between the Company and the appointee in the ratio of 50:50. Accordingly the expenses incurred on gas, electricity, water and furnishing at actual value, shall also be apportioned between the Company and the appointee in the ratio of 50:50.

2. The Company’s contribution to provident fund, superannuation fund or annuity fund, gratuity payable and encashment of leave, as per the rules of the Company.

3. Medical reimbursement/allowance: Reimbursement of actual expenses for self and family and/or allowances will be paid as per the rules of the Company.

4. Provision of driver/allowance for driver’s salary: As per the rules of the Company.

5. Expenses in relation to use Company car and telephone for official purpose.

6. Any other expenses incurred/reimbursed not specifically included hereinabove.

In compliance with the provisions of Sections 2(78), 2(94), 197, and 203 read with Schedule V of the Companies Act 2013 and other applicable provisions, if any, the appointment and terms of remuneration specified above are now being placed before the Members for their approval by an Ordinary Resolution.

Except Mr. Chand Seth being related to Mr. Varun Seth, no other Director, Manager and Key Managerial Personnel (KMP) or relatives of such Director, Manager or KMP are interested/ concerned financial or otherwise in this resolution.

ADDITIONAL INFORMATION’S AS REQUIRED UNDER SCHEDULE V OF THE COMPANIES ACT, 2013 AND SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 ARE GIVEN BELOW:

A. GENERAL INFORMATION:

(i) Nature of Industry: The Company is a leading Manufacturer of PET Jars and Bottles.

(ii) Expected date of commencement of commercial production: Commercial operations commenced in the year 1971.

(iii) Financial Performance based on given indicators: The relevant financial figures (Audited) as under:

(Rs. In Lakhs)

Total Revenue

Total Expenses

Net Profits before Tax

Tax Expenses

Net Profit after Tax

18,279.67 18,716.86 (437.19) (174.04) (263.15)(iv) Earning and expenditure in foreign currency: The Company

has recorded export earnings of Rs. 27.67 Lakhs whereas value of import payments towards raw material and capital goods amount to Rs. 2409.56 Lakhs, details of which have been incorporated in note no. 40 to 43 to the Notes to financial statements.

(v) Foreign Investments or collaborators, if any: Not Applicable.

B. INFORMATION ABOUT THE DIRECTORS RETIRING BY ROTATION / SEEKING RE- APPOINTMENT AT THE ENSUING ANNUAL GENERAL MEETING:

Description Mr. Varun Seth Mr. Chand Seth

Background details/Qualification Mr. Varun Seth joined the Company in the year 2006 as the Whole Time Director. He holds Bachelor degree in Engineering (Industrial Production). He has a rich experience of over 22 years in various fields like marketing, manufacturing etc. His Director Identification Number is 00017552.

Mr. Varun Seth is continuously running the operations of the Company in good as well as in difficult times.

Mr. Chand Seth holds a degree in B.Tech (Mech.) from IIT (Kharagpur) and MS from Michigan University, USA.

He took charge as Managing Director of the Company and has taken very pro-active efforts in the operations and management of the Company since then. He has wide experience in managing this Company under the overall experience of about 48 years in running large size manufacturing Company.

Past remuneration Rs. 42.00 Lakhs (per annum) Not Applicable

Shareholding 5,97,778 equity shares 8,90,475 equity shares

Job profile and responsibility Mr. Varun Seth with whose rich experiential background, the Company remains reinforced to strive through the challenging times and bounce back on the growth chart. Thus, he is ideally suited for the job.

Mr. Chand Seth is overall in charge of entire affairs of the Company. His experience in the field of polymers and his qualifications are ideally suited to the nature of our Industry.

Recognition or Awards The Company won various awards namely India Star Award, Asia Star Award, World Star Award and Plasticon Award by Plast India under leadership of Mr. Varun Seth.

Not Applicable

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Total Expenses


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2018-20194

commission as the Board may approve from time totimeandsubjecttosuchlimits,prescribedorasmaybeprescribedfromtimetotimebyorundertheCompaniesAct,2013.


5. Re-appointmentofMr.AshishHarishBhuvaasanIndependentDirectoroftheCompany


“RESOLVED THATpursuanttoprovisionsofsection149,152andanyotherapplicableprovisionsoftheCompaniesAct,2013(hereinafterreferredtoasthe‘Act’),theRulesmadethereunderreadwithScheduleIVtotheCompaniesAct,2013andtheapplicableprovisionsoftheSecuritiesand Exchange Board of India (Listing Obligations andDisclosureRequirements)Regulations,2015(hereinafterreferredtoasthe‘ListingRegulations’)andamendmentsthereto (including any statutory modification(s) orre-enactment(s) thereof, for the time being in force),based on the recommendation of the Nomination andRemunerationCommitteeandtheBoardofDirectorsoftheCompany,Mr.AshishHarishBhuva(DIN06780082),whowas appointed as an Independent Director in the43rdAnnualGeneralMeetingoftheCompanyandwhoseterm of office expires on 28th September, 2019 and beingeligibleandinrespectofwhomtheCompanyhasreceivednoticeundersection160oftheCompaniesAct,2013,beandisherebyreappointedasanindependentdirectorontheBoardoftheCompanytoholdofficeforfurther5consecutiveyearsstartingfrom28th September, 2019tillthecompletionof5consecutiveyears.

RESOLVED FURTHER THATpursuanttotheprovisionsofsection149,197andotherapplicableprovisionsof theAct and the Rules made thereunder, Mr. Ashish Harish Bhuva be paid such fees, remuneration and/or profit-related commission as the Board may approve fromtime to time and subject to such limits, prescribed orasmaybeprescribedfromtimetotimebyorundertheCompaniesAct,2013.


6. AlterationofArticlesofAssociationoftheCompanytherebyadoptingnewsetofArticlesofAssociationoftheCompanyinaccordancewiththeprovisionsofCompaniesAct,2013.

To consider and, if thought fit, to pass with orwithout modification the following resolution as aSpecialResolution:

“RESOLVED THAT pursuant to the provisions ofSection 14 and all other applicable provisions, if any,of the Companies Act, 2013 (including any statutorymodification(s) or re-enactment thereof for the timebeing in force) read with rules made there under and Schedule I to theCompaniesAct,2013, the consentofthemembersoftheCompanybeandisherebyaccordedtoadoptnewsetofArticlesofAssociationpursuant totheAct,primarilybasedontheFormofTableFundertheAct,insubstitutionoftheexistingArticlesofAssociationoftheCompany.

RESOLVED FURTHER THAT the Board be and is herebyauthorized to take all such steps asmay be necessary,proper or expedient to give effect to the above statedresolution”.

ByOrderoftheBoardofDirectorsFor Pearl Polymers Limited

Sd/-VineetGupta

CompanySecretaryM.No:ACS-47642

Place:NewDelhiDate:August14,2019RegisteredOffice:A-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020CIN: L25209DL1971PLC005535

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NOTES:

i. Proxy: A MEMBER ENTITLED TO ATTEND AND VOTEATTHEMEETING(AGM)ISAUTHORIZEDTOAPPOINT ANOTHER PERSON AS PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF. SUCH A PROXY NEED NOT BE A MEMBER OF THE COMPANY.

Proxies, inordertobevalidandeffective,mustbedelivered at the registered office of the Companynotlaterthan48hoursbeforethecommencementofthemeeting.

Pursuant to the provisions of Section 105 of theCompanies Act, 2013, a person can act as proxyonbehalfofMembersnotexceedingfifty(50)andholding in the aggregate not more than 10% of the total share capitalof theCompanycarryingvotingrights. A Member holding more than 10%, of the total share capitalof theCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasproxy foranyotherpersonor Shareholder. Proxies submitted on behalf ofCompanies,must be supported by an appropriateresolution/authority as applicable. Proxies arerequested to bring their Identity proof at themeetingforthepurposeofidentification.

ii. TheExplanatoryStatementpursuanttoSection102oftheCompaniesAct,2013formspartofthisnotice.

iii. IntermsofSection152oftheCompaniesAct,2013,Mr. Ramesh Mehra (DIN: 00003334) Director, isliabletoretirebyrotationattheensuingAGMandbeing eligible, offer himself for re-appointment.Brief profile, information and relevant details,pursuant to the SEBI (Listing Obligations andDisclosureRequirements)Regulations, 2015 (“SEBI(LODR)Regulations,2015”)andSecretarialStandardon General meetings issued by the Institute ofCompanySecretariesofIndia,inrespectofDirectorsseeking appointment/re-appointment at this AGMis annexed hereto.

iv. Members/proxiesarerequestedtobringtheirdulyfilledattendanceslipannexedhereto,toattendtheAGM mentioning therein details of their DP andClientID/FolioNo.

v. In case of joint holders attending the AGM, onlysuchjointholderwhosenamestandsfirstorhigherontheRegisterofMembersshallbeentitledtovote.

vi. As an austerity measure, copies of the AnnualReport will not be distributed at the AGM. Members arerequestedtobringtheircopyofAnnualReporttothemeeting.

vii. Relevant documents referred in accompanyingNotice and Explanatory Statement are open andavailable for inspection by the Members at theregisteredofficeoftheCompanyonallworkingdaysexceptSaturdaysfrom10.00a.m.to12.30p.m.uptothe date of AGM.

viii. All correspondence relating to change of address,changeinthee-mailIDalreadyregisteredwiththeCompany,transfer/transmissionofshares,issueofduplicatesharecertificates,consolidationof folios,bank mandates and all other matters relating totheshareholding intheCompanymaybemadetoMASServicesLtd., the registrarandshare transferagent (“RTA”). The Members holding shares in dematerialisedformmaysendsuchcommunicationtotheirrespectiveDepositoryParticipants(“DP’s”).

ix. To receive shareholders’ communications throughelectronic means, including Annual Reports and Notices,membersarerequestedtokindlyregister/update their email address with their respectivedepository participant, where shares are held inelectronic form. If, however, shares are held inphysical form, members are advised to registertheire-mailaddresswithMASServicesLimited,theRegistrarandShareTransferAgentoftheCompany.

x. TheRegisterofMembersandShareTransferBooksof the Companywill remain closed from SaturdaySeptember21,2019toFriday,September27,2019(bothdaysinclusive).

xi. The Members whose names appear on the Company’s Register of Members as on Friday,September20,2019(“cut-offdate”)willbeeligibletoattendandvoteattheAGM.

xii. Members can avail the facility of nomination inrespect of shares held by them pursuant to theprovisionsofSection72oftheCompaniesAct,2013.Membersdesiringtoavailthisfacilitymaysendtheirnomination in theprescribedFormno.SH-13dulyfilledintotheCompany/RTA/DP’s.

xiii. TRANSFER OF UNCLAIMED FIXED DEPOSITS TO INVESTORS EDUCATION AND PROTECTION FUND (IEPF)

The Company has transferred time to time theunclaimed amount of deposits which remained unpaidorunclaimedforsevenconsecutiveyearstothe Investor Education and Protection Fund (IEPF)established by the Central Government. PursuanttotheprovisionsofSection125ofCompaniesAct,2013, the Company has uploaded the details of

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unclaimedfixeddepositlyingwiththeCompanyasonSeptember28,2018 (dateof lastAGM)on thewebsiteof theCompanyasalsoonthewebsiteoftheIEPF-MinistryofCorporateAffairs.

xiv. PursuanttoSections101and136oftheCompaniesAct, 2013 read with relevant Rules framedthereunder, the Annual Report for financial year2018-19 and the Notice of the AGM, inter-aliaindicating the process and manner of remotee-votingalongwiththeattendanceslip,proxyformand RouteMap are being sent by e-mail to thoseMemberswhohaveregisteredtheire-mailIDeitherwiththeCompany/RTAorwiththeDP’sunlesstheMemberhasrequestedforahardcopyofthesame.ForMemberswhohavenotregisteredtheire-mailID,physicalcopiesoftheAnnualReportforfinancialyear 2018-19 and the Notice of the AGM, inter-alia, indicating theprocess andmannerof remotee-votingalongwiththeattendanceslip,proxyformandRouteMap,isbeingsentinthepermittedmode.

xv. SEBI has mandated the submission of PermanentAccount Number (PAN) by every person dealingin securities market. Members holding shares inelectronic form are, therefore, requested to submit the PAN to their depository participants withwhom theyaremaintaining their demataccounts.MembersholdingsharesinphysicalformcansubmittheirPANdetailstotheCompanyortheRTA.

xvi. SEBI vide its notification dated 8 June 2018 asamendedon30November2018,hasstipulatedthatw.e.f.1April2019,thetransferofsecurities(excepttransmission or transposition of shares) shall notbeprocessed,unless thesecuritiesareheld in thedematerialized form. Inviewof this,membersarerequestedtodematerializetheirshares.

xvii.Shareholders are requested to send their queries, if any, with regard to Financial Result/ Accounts/AnnualReport, to theCompanySecretary,at leastsevendaysbeforethedateoftheAGM,sothattherequisiteinformation/explanationscanbeprovidedintime.

xviii.NoticeoftheAGMandtheAnnualReportismadeavailableontheCompany’swebsitewww.pearlpet.net .

xix. VOTING THROUGH ELECTRONIC MEANS

In compliance with provisions of Section 108 oftheCompaniesAct,2013readwithRule20of theCompanies (Management and Administration)Rules,2014,SecretarialStandardandRegulation44

oftheSEBI(LODR)Regulations,2015,theCompanyispleasedtoprovideitsMembersfacilitytoexercisetheir right to vote on resolutions proposed to beconsidered at the 48th AGM by electronic meanswhichincludes“remotee-voting”i.e.,fromaplaceotherthanvenueoftheAGM,providedbyNationalSecuritiesDepositoryLimited(“NSDL”).MembersoftheCompanyholdingshares inphysical formor indematerialisedformmayexercisetheirrighttovoteby electronic means in respect of the resolutionscontainedintheNoticeoftheAGM.

• The Members desiring to vote through electronicmode may refer to the detailed procedure forremote e-voting given in the attendance slip,annexed to this Annual Report.

• The remote e-voting period will commence onTuesday, September 24, 2019 (09.00 A.M.) andendsonThursday,September26,2019(05:00P.M.).During this period, theMembers of the Companyholdingsharesinphysicalformorindematerialisedform,asonthecut-offdate,beingFriday,September20,2019,maycast their votebyelectronicmeansin the manner and process set out hereinabove.The e-voting module shall be disabled for votingthereafter.

• Facilityforvotingthroughballot/pollingpapershallalsobemadeavailable at the venueofAGM. TheMembers who are entitled to vote but have notexercisedtheirrighttovotethroughremotee-votingmayvoteattheAGMthroughBallotPapers.

• TheMemberswhohavecast theirvotebyremotee-votingmayalsoattendtheAGMbutshallnotbeentitledtocasttheirvoteagain.

• Ms. Rashmi Sahni, Practicing Company Secretary(CertificatePracticeNo:10493)hasbeenappointedas the Scrutinizer for conducting remote e- votingfacilityandthevotingprocessattheAGMinafairand transparent manner.

• The Scrutinizer shall immediately after theconclusion of voting at the AGM, count the votescast at theAGMand thereafterunblock the votescast through remote e-voting in the presence ofat least two (2)witnesses not in the employmentof the Company. The Scrutinizer shall submit aconsolidated Scrutinizers Report of the total votescast in favour of or against, if any, not later than48 hours after the conclusion of the AGM to theChairperson of the Company. The Chairperson, orany other person authorised by the Chairperson,

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2018-20197

shallcountersignthesameanddeclaretheresultofthevotingforthwithwithdetailsofthenumberofvotescastforandagainsttheresolution,invalidvotesandwhethertheresolutionhasbeencarriedornot.

• The Results declared along with the Scrutinizer’s Report(s) will be available on the website of the Company www.pearlpet.net and on thewebsite of NSDL after communication of the same to the BSE Limited and theNationalStockExchangeofIndiaLimited.

EXPLANATORYSTATEMENTSASREQUIREDBYSECTION102OFTHECOMPANIESACT,2013

ITEM NO. 2

Asregardsre-appointmentofMr.RameshMehrareferredtoinitemno.2oftheNotice,followingdisclosuresaremadefortheinformationoftheshareholders:

Description Mr. Ramesh MehraBrief profile including area andnatureofexpertise

Mr. Ramesh Mehra holds the degree in B.Sc. Engineering (Electrical) from RegionalEngineeringCollege,RourkelaandL.L.B.fromGovt.CollegeKota.He has over 40 years of rich experience in commercial production, salesadministration, account and personnel in industrial and manufacturingconcerns.HealsounderwentonsitetraininginJapanduringinitialassignments.Hisknowledgeandexpertise invariousfieldswillbenefit thecompany inanindispensible manner.

DateofBirth February18,1950RelationshipwithDirectorsinterse Mr.RameshMehraisnotrelatedtoanyDirectoroftheCompanyNamesoflistedentitiesinwhichtheperson also holds the directorshipandthemembershipofCommitteesoftheboard

Mr.RameshMehraholdsDirectorshipandmembershipsofcommitteesoftheBoardinM/sPearlApartmentsLimited.

ITEM NO.3 & 4

Re-appointment of Mr. Ravi Kumar Mehra and Ms.MeeraJohriasIndependentDirectorsoftheCompany

PursuanttotheprovisionsofSections149,152readwithSchedule IV and other applicable provisions, if any, oftheCompaniesAct,2013andRules framedthereunderand the erstwhile Clause 49 of the Listing Agreementwiththestockexchanges,Mr.RaviKumarMehraandMs.Meera Johri were appointed as Independent Directorsof the Company by the Board of Directors subject tothe approval of themembers in the43rdAGM of theCompanytoholdofficefor5yearsupto25thMay,2019.The Nomination and Remuneration Committee on thebasis of performance evaluation, has recommendedtheir re-appointment as Independent Directors of theCompany. On the basis of recommendation of theNomination and Remuneration Committee, the BoardofDirectorsoftheCompanyatitsMeetingheldon15th May,2019re-appointedMr.RaviKumarMehraandMs.Meera Johri as Independent Directors w.e.f 26th May,2019 subject to the approval of the members of thecompanyintheAnnualGeneralMeeting.TheCompanyhasreceivedanoticeinwritingunderSection160oftheAct fromMr. Ravi Kumar Mehra and Ms. Meera JohriproposingtheircandidaturefortheofficeofIndependentDirectorsoftheCompany.

TheappointeesarenotdisqualifiedfrombeingappointedasDirectorsintermsofSection164oftheActandhavegiven their consent to act as Directors alongwith adeclaration to the effect that theymeet the criteria ofIndependence as provided under section 149(6) of theActandaspertheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

Inviewofabove,theBoardofDirectorsofyourcompanyhasrecommendedtheseresolutionsforyourapproval.

ITEM NO.5

Re-appointment of Mr. Ashish Harish Bhuva as anIndependentDirectoroftheCompany

PursuanttotheprovisionsofSections149,152readwithScheduleIVandotherapplicableprovisions,ifany,oftheCompaniesAct,2013andRulesframedthereunderandtheerstwhileClause49oftheListingAgreementwiththestockexchanges,Mr.AshishHarishBhuvawasappointedas Independent Director of the Company at the 43rd AnnualGeneralMeetingof theCompanytoholdofficefor5yearsupto28thSeptember,2019.Hisofficecomestoanendon28thSeptember,2019.TheNominationandRemuneration Committee on the basis of performanceevaluation, has recommended his re-appointment asIndependentDirector of the Company.On the basis of

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2018-20198

recommendationof theNominationandRemunerationCommittee, the Board of Directors of the Companyhas decided to re appointMr. Ashish Harish Bhuva asIndependentDirectoroftheCompanyforfurtherperiodof5consecutiveyearsw.e.f.29thSeptember,2019,subjecttotheapprovalof themembersof thecompany intheAnnual GeneralMeeting. The Company has received anoticeinwritingunderSection160oftheActfromMr.Ashish Harish Bhuva proposing his candidature for theofficeofIndependentDirectoroftheCompany.

TheappointeeisnotdisqualifiedfrombeingappointedasDirectorintermsofSection164oftheActandhasgivenhisconsenttoactasDirectoralongwithadeclarationtotheeffectthathemeetsthecriteriaofIndependenceasprovidedundersection149(6)oftheActandaspertheSEBI (Listing Obligations and Disclosure Requirements)Regulations,2015.

Inviewofabove,theBoardofDirectorsofyourcompanyhasrecommendedthisresolutionforyourapproval.

BriefProfileofMr.RaviKumarMehra,Ms.MeeraJohriandMr.AshishHarishBhuva,isasunder:

BriefResumeofMr.RaviKumarMehra: Mr.RaviMehraholdstheBachelordegreeinChemistryandaBachelor’sdegree in Chemical Engineering, USA. He also holds aDiploma in ‘Marketing & Sales’ from YMCA, Delhi. Hehasover35yearsofIndustryexperiencewhichincludesholdingthepositionofManagingDirectorin‘Electrical&IndustrialCeramicsPvt.Ltd.’foraperiodofthreeyearsandRavisionDrugsPvt.Ltd.foraperiodof14years.HealsoholdsexperienceofworkingwithShyamAhujaPvt.Ltdattheseniorlevel.

Healsocompiled&publishedabook‘Chemical&MedicalFormularyofIndia’whichlistedallnames&therapeuticeffectsofmostcommonlyuseddrugsinIndiaforusagebydoctors&hospitals.

AtpresentheisnotadirectorinanyotherCompanyandhe also doesn’t holdmembership/chairmanship of anyCommitteeinotherCompany.HeholdsnilequitysharesoftheCompany.

BriefResumeofMs.MeeraJohri:Ms. Meera Johri is a renowned personality in the field of book publishing.Sheisheadingaleadingpublicationgroupbythenameof Rajpal& Sons’ and is activelywidening the focus ofpublishing by adding on books in English and a rangeof dictionaries and has published authors like APJAbdulKalam, J.Krishnamurti, JaswantSingh,DalaiLamaetc.

Shehasalsowrittenanumberofbooksviz.Women in

Power,ParamveerChakra:Profiles inCourage; InspiringThoughts on Management; Inspiring Thoughts onSuccessfulLeadershipetc.

Smt. Meera Johri is a Graduate in Economics (Hons.) from the Indraprastha College,University ofDelhi, andhas done herMasters in Business Administration fromtheFacultyofManagementStudies,UniversityofDelhi.She was a marketing consultant for 12 years and hashad experience of the electronics, plastics and travelindustries..

At present she neither holds directorship in any otherCompany nor a member/chairman of any Committeein other Company. She holds nil equity shares of theCompany.

BriefResumeofMr.AshishHarishBhuva:

Mr.AshishHarishBhuvaisaBachelorofCommercefromUniversity of Mumbai and Diploma holder in BusinessManagement fromWelingkar Institute ofManagementDevelopment & Research, Mumbai. He has alsocompleted Management Development Programme onMarketingforOwnerManagedCompaniesfromNarseeMonjee Institute of Management & Higher Studies,Mumbai.Mr. Ashish Harish Bhuva is a results-orientedperson with a positive outlook & has comprehensiveunderstanding of management principles.

Mr. Ashish Harish Bhuva has approx. 22 years ofexperience in the Industry. He is a Director in IndoNipponChemicalCompanyLtd.and isactively involvedintheplanning&organisingtheorganisation’sactivities,developing business plans & preparing comprehensivebusiness reports, Reviewing, refining & developing thestrategy&directionoftheCompanyetc.

Keepinginviewthevastexpertiseandknowledgeoftheappointees,itwillbeintheinterestoftheCompanythatMr.RaviKumarMehra,Ms.MeeraJohriandMr.AshishHarishBhuvaarereappointedasIndependentDirectors.

NoneoftheappointeeisrelatedtoanyKeyManagerialPersonnel (KMP)of theCompanyandholds anyEquitySharesintheCompany.

Thedetailsregardingsittingfeespaidtotheappointeesinthepastaregiveninthecorporategovernancereport.NO remuneration was drawn by them during theirprevious term as Independent Directors. The detailsregardingthebasisofperformanceevaluationaregivenin the Board Report.

Nodirector,KeyManagerialPersonnelortheirrelatives,exceptMr.RaviKumarMehra,Ms.MeeraJohriandMr.AshishHarishBhuvatowhomtheresolutionsrelateare

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2018-20199

ByOrderoftheBoardofDirectorsFor Pearl Polymers Limited

Sd/-VineetGupta

CompanySecretaryM.No:ACS-47642

Place:NewDelhiDate:August14,2019RegisteredOffice:A-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020CIN: L25209DL1971PLC005535

concernedorinterested,financiallyorotherwise,intheresolutionsetoutatItemno.3,4&5ofthisNoticeexcepttotheextentoftheirshareholdingintheCompany.

ITEM NO.6

Alteration of Articles of Association of the Company thereby adopting new set of Articles of Association of theCompanyinaccordancewiththeprovisionsofCompaniesAct,2013.

TheexistingArticlesofAssociation(AOA)oftheCompanyisbasedontheErstwhileCompaniesAct,1956andseveralarticles/regulationsintheexistingAOAcontainreferencestospecificsectionsoftheCompaniesAct,1956whichareno longer in force.

PursuanttothenotificationoftheCompaniesAct,2013,severalarticles/regulationsoftheexistingAOAoftheCompanyrequirealterationordeletion.Itistherefore,proposedtoreplacetheexistingAOAwiththenewsetofAOAinconformitywithTableFofScheduleIoftheCompaniesAct,2013.TherevisedsetofAOAshallbeavailablefortheinspectionattheRegisteredOfficeoftheCompanyduringbusinesshoursonallworkingdays.

PursuanttotheprovisionsofSection14ofCompaniesAct,2013,consentofthemembersbywayofSpecialResolutionisrequiredinthisregardtogiveeffecttotheproposedalteration.Hence,theBoardrecommendstheSpecialResolutionsetforthinaforesaiditemofthenoticeforapprovalofthemembers.

NoneoftheDirectorsoftheCompanyortheirrelativesareconcernedorinterested,financiallyorotherwise,inthisresolutionexcepttotheextentoftheirshareholdingintheCompany.

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TOTHEMEMBERS,

Your Directors are pleased to present the 48th Annual Report of Pearl Polymers Limited (“the Company”) forthefinancialyearendedMarch31,2019.

FINANCIAL SUMMARY

The Company's financial performance for the financialyear endedMarch 31, 2019 in comparison to previousfinancialyearissummarizedbelow:

(Rs.inLakhs)Particulars 2018-19 2017-18TotalRevenue 18,092.22 18,279.66Total expenses 18,723.56 18,716.86Profit/(loss)beforeexceptionalitemsandtax

(631.34) (437.19)

Less:TaxExpenses (144.90) (174.04)Profit/Lossaftertax (486.44) (263.15)

RESERVES

TheReservesandSurplus(excludingRevaluationReserve)of the Company as on March 31, 2019 stood at Rs.2,790.84Lakhs.Noamountisproposedtobetransferredtoreservesduringtheyear.

DIVIDEND

In view of the losses, the Board of Directors has notrecommendedanydividendonequitysharesfortheyearunderreview.

SHARE CAPITAL

The Company’s Capital Structure remains unchangedduringthefinancialyear2018-19.

STATE OF THE COMPANY’S AFFAIRS/CHANGES IN THE NATUREOFBUSINESS,IFANY

During the year under consideration on Standalonebasis your Company has achieved total Revenuefrom Operations of Rs 18,092.22 Lakhs as against Rs.18,279.67 Lakhs in the relevantpreviousfinancial year.TheCompanyhas sufferedoperating lossofRs.631.34Lakhsas compared toRs.437.19Lakhs in thepreviousyear and recorded net loss of Rs. 486.44 Lakhs ascomparedtolossofRs.263.15Lakhsinthepreviousyearduetoseveralreasonssuchasvolatilityincrudeprices,rawmaterialprices,oppositionofplasticproductsbytheendcustomersandstiffcompetition fromun-organizedsectorandlocalplayersadverselyaffectedtheturnover.

During the year, there is no change in the nature ofbusinessoftheCompany.

MATERIAL CHANGES EFFECTING FINANCIAL POSITION OF THE COMPANY

Therehavebeennomaterialchangesandcommitmentsaffecting the financial position of the Company, whichhaveoccurredbetweentheendoffinancialyearandthedate of this report.

MATERIAL ORDERS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY

There is no order passed by any regulatory authorityor court or tribunal against the Company, impactingthe going concern status and future operations of theCompany.

DEPOSITS

YourCompanyhasnotacceptedanydepositsduringtheyearunderreview,fallingwithintheambitofSection73of the Companies Act, 2013 read with the Companies(AcceptanceofDeposits)Rules,2014.

INVESTOR EDUCATION AND PROTECTION FUND

PursuanttoSection125oftheCompaniesAct,2013readwith Investor Education and Protection Fund Authority(Accounting,Audit,TransferandRefund)Rules,2016,theamount of fixed deposit remaining unpaid /unclaimedfor a period of seven years has been transferred tothe Investor Education and Protection Fund (IEPF)establishedbytheCentralGovernmentofIndia.Further,theCompanyhasuploadedthenecessaryinformationinrespectoftheunclaimedamountonthewebsiteofIEPFviz.www.iepf.gov.inandontheCompany’swebsite.

CORPORATE SOCIAL RESPONSIBILITY

The provisions of Corporate Social Responsibility asprescribedundersection135oftheCompaniesAct,2013arenotapplicabletotheCompany.

HOLDING,SUBSIDIARY,ASSOCIATEORJOINTVENTURECOMPANIES

The Company has no Holding, Subsidiary, Associate orJointVentureCompany.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

a) DirectorLiabletoRetirebyRotation

Mr. Ramesh Mehra (DIN:00003334), retires byrotationattheensuingAnnualGeneralMeeting,andbeing eligible, offers himself for re-appointment.The Board recommends his re-appointment.

b) Re-appointmentofIndependentDirectors

ThetermofMr.RaviKumarMehraandMs.MeeraJohri as Independent Directors was expired on

BOARD’S REPORT

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2018-201911

25th May, 2019. Accordingly, on the basis ofrecommendationofNominationandRemunerationcommittee and the performance evaluation, theBoardhasre-appointedMr.RaviKumarMehraandMs. Meera Johri as Independent Directors of theCompany for further term of 5 consecutive yearw.e.f26thMay,2019subjecttotheapprovalofthemembers of the Company in the Annual GeneralMeeting.

Further, Mr. Ashish Harish Bhuva whose term ofofficeexpireson28thSeptember,2019iseligibletobe re-appointed for further termof 5 consecutiveyear w.e.f 29th September, 2019. Accordingly, onthe basis of recommendation of Nomination andRemuneration committee and the performanceevaluation, the Board has recommended the re-appointmentofMr.AshishHarishBhuva.

c) Re-AppointmentofMr.VarunSeth

Duringtheyear,Mr.VarunSethwasre-appointedaswholetimedirectorforaperiodof3yearsw.e.fJuly01,2018.

d) NumberofmeetingsoftheBoardofDirectors

TheBoardofDirectorsoftheCompany,metFour(4)timesduringthefinancialyear2018-19.

29thMay,2018Board

Meetings14thFebruary,

201914thAugust,201814thNovember,2018Further,aseparateMeetingoftheIndependentDirectorsof the Companywas also held on August 14, 2018, asprescribed under Schedule IV to the Companies Act,2013andSEBI(LODR)Regulations,2015.

Therewas no change in the composition of the Boardof Directors of the Company during the financialyear2018-19.

e) ChangesinKeyManagerialPersonnel

During the year, there was no change in the KeyManagerialPersonneloftheCompany.

f) DeclarationbyIndependentDirectors

The Company has received declarations from theIndependent Directors confirming that they meetthe criteria of independence as prescribed under Section149(6)oftheCompaniesAct,2013.

g) BoardEvaluation

The Board of Directors has carried out an annual evaluation of its own performance, boardcommittees and individual Directors pursuantto Companies Act, 2013 and Regulation 17 (10)

of the SEBI (Listing Obligations and DisclosureRequirements)Regulations,2015.

The evaluation framework for assessing theperformance of Directors was on the basis of criteria such as the Board composition and structure,effectiveness of board processes, information andfunctioning,etc.TheNominationandRemunerationCommittee had evaluated the performance ofindividualDirectorsonthebasisofcriteriasuchasthe contribution of the individual Director to theboard and committee meetings like preparednesson the issues to be discussed, meaningful and constructive contribution and inputs in meetings,etc.AmemberoftheBoarddoesnotparticipateinthe discussion of his/her evaluation. Performanceevaluation of Independent Directors was carriedoutbytheentireboard,excludingtheIndependentDirectorbeingevaluated.

A meeting of the Independent Directors was alsoheld, to review the performance of the Non-Independent Directors, the Board as a whole andtheChairpersonontheparametersofeffectivenessandtoassessthequality,quantityandtimelinessoftheflowof informationbetweentheManagementand the Board.

h) NominationandRemunerationPolicy

Your Company has adopted a Nomination andRemunerationPolicyasrequiredbySection178ofthe Companies Act, 2013, which provides for theappointment/selectionofDirectors,KeyManagerialPersonnel&otheremployeesandtheirremuneration including criteria for determining qualifications,positive attributes, independence of a directoretc.YourCompanyaffirmedthattheremunerationpaid is as per the as per the Remuneration PolicyforDirectors, KeyManagerial Personnel andotherEmployees.ThedetailsofsuchpolicycanbeviewedontheCompany'swebsitewww.pearlpet.net.

PARTICULARS OF LOANS, GUARANTEES ORINVESTMENTS

TheCompanyhasnot givenany loanor guaranteenorhasmadeanyinvestmentduringtheyearunderreviewattractingtheprovisionsofSection186oftheCompaniesAct,2013.

RISK MANAGEMENT

TheCompanyhasput inplaceapolicyandmechanismto identify, assess, monitor and mitigate various riskstokeybusinessobjectives.Majorrisks identifiedbythebusinesses and functions are systematically addressed

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throughmitigatingactionsoncontinuingbasis.TherearenoriskswhichintheopinionoftheBoardthreatentheexistenceoftheCompany.

INSIDER TRADING CODE

In compliance with the Securities and Exchange Boardof India (Prohibition of Insider Trading) Regulations,2015 (‘the PIT Regulations’) on prevention of insidertrading,yourCompanyhasrevised itsCodeofConductfor regulating, monitoring and reporting of tradingby Designated Persons and immediate relatives ofDesignatedPersonsinlinewiththerecentamendmentsbrought by SEBI in the PIT Regulations. Your Companyhasalsoadoptedpolicy fordeterminationof legitimatepurposesinlinewiththePIT(Amendment)Regulations,2018asapartofCodeofpracticesandproceduresoffairdisclosuresofunpublishedpricesensitiveinformation.

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

Your Company is committed to highest standards ofethical, moral and legal business conduct. Accordingly,duringtheyear,theBoardofDirectorsofyourCompanyhas adopted revised policy onwhistle blower and vigilmechanism for providing a framework to promoteresponsible and secure whistle blowing. It protectsDirectors and employees wishing to raise a concernabout serious irregularities within the Company. ThePolicy is available on the Company’s website at www.pearlpet.net.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMANATWORKPLACE (PREVENTION, PROHIBITIONANDREDRESSALACT),2013

The Company has put in place a policy on preventionof Sexual Harassment in line with the requirement of SexualHarassmentofWomenatWorkplace(Prevention,Prohibition & Redressal) Act, 2013. All employees(Permanent, Contractual, Temporary, Trainees) arecoveredunderthispolicy.TheCompanyhasnotreceivedanycomplaintofsexualharassmentduringthefinancialyear2018-19.

PARTICULARS OF EMPLOYEES AND REMUNERATION

TheRemunerationdetailsoftheDirectors,ChiefFinancialOfficer and Company Secretary, along with details ofratio of remuneration of each Director to the medianremunerationofemployeesof theCompany for theFYis annexed as Annexure‘I’aftertheendofBoardReport.

The particulars required pursuant to Section 197 readwith Companies (Appointment and Remunerationof Managerial Personnel) Rules, 2014, shall be madeavailabletoanyshareholderonaspecificrequestmade

byhim/herinwritingbeforethedateofensuingAnnualGeneral Meeting and such particulars shall be madeavailable by the Company within three days from thedate of receipt of such request from the shareholders.

CONSERVATIONOFENERGY,TECHNOLOGYABSORPTION,FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars in respect of Conservation of Energy,Technology absorption and Foreign Exchange earningsandoutgo as requiredunder section134 (3)(m)of theCompaniesAct, 2013, readwith the rules there under,areprovidedinAnnexure-‘II’ to this report.

DIRECTORS' RESPONSIBILITY STATEMENT

TheBoard ofDirectors of the Company, to the best oftheirknowledgeandbeliefconfirmthat:

I. In the preparation of the annual accounts, theapplicableaccountingstandardshavebeenfollowedalongwith proper explanation relating tomaterialdepartures,ifany;

II. TheDirectorshaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasatMarch31,2019andoftheprofitandlossoftheCompanyforthatperiod;

III. The Directors have taken proper and sufficientcare for themaintenance of adequate accountingrecords in accordance with the provisions of theAct for safeguarding the assets of the Companyand for preventing and detecting fraud and otherirregularities;

IV. TheDirectorshavepreparedtheannualaccountsonagoingconcernbasis;

V. The Directors have laid down internal financialcontrols tobe followedby theCompanyand suchinternal financial controls are adequate and wereoperatingeffectively;and

VI. Thedirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsand such systems were adequate and operatingeffectively.

AUDITORS

a) StatutoryAuditors

StatutoryAuditorsandAuditor’sReport

The shareholders of the Company at 46th AGMheld on September 29, 2017 had appointed M/s. Sehgal Mehta & Co. Chartered Accountants, (ICAIRegistrationNo-003330N),astheStatutoryAuditors

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of the Company for a term of 5 years, subject toratificationbymembers at everyAGM, if requiredunder the provisions of the Companies Act, 2013.However,theCompaniesAmendmentAct,2017hasremovedtherequirementofratificationofstatutoryauditors and accordingly they hold their office tillthe conclusion of Annual General Meeting to beheld in 2022.

b) SecretarialAuditor

Your Company has appointed Ms. Rashmi Sahni,(Certificate of Practice No. 10493) PracticingCompany Secretary, as the Secretarial Auditor toconduct an audit of the Secretarial records for the financialyear2018-19.

Explanations or comments by the Board on everyqualification, reservation or adverse remark ordisclaimer made:

I. StatutoryAuditor’sReport

Therearenoqualifications,reservationsoradverseremarksordisclaimersmadebyStatutoryAuditors,in their report. There are no frauds reported in the reports of the Auditors as mentioned under sub-section(12)ofSection143oftheAct.

II. Secretarial Auditor’s Report

The SecretarialAudit Report doesnot contain anyqualifications, reservations or adverse remarks ordeclaimer.AReportofSecretarialAuditisprovidedin Annexure-‘III’ to this report.

c) InternalAuditor

Nikhil Goel & Associates (Firm Registration No.020934C) Chartered Accountants, has beenappointed as an Internal Auditor of the Companyto conduct an internal audit of the functions andactivitiesoftheCompanyforfinancialyear2018-19,intermsofSection138oftheCompaniesAct,2013.

d) CostAuditor

The provisions of Cost Audit as prescribed undersection 148 of the Companies Act, 2013 are notapplicabletotheCompany.

e) Compliance with the Institute of CompanySecretariesofIndia(“ICSI”)SecretarialStandards

TherelevantSecretarialStandardsissuedbytheICSIrelatedtotheBoardMeetingsandGeneralMeetingshavebeencompliedwithbytheCompany.

f) StatutoryCompliances

The Board periodically reviews the mechanismput in place by the management to ensure the

complianceswithLawsandRegulationsasmaybeapplicabletotheCompanyaswellasthestepstakenby the Company to rectify the instances of non-compliances,ifany.

RELATED PARTY TRANSACTIONS

Duringtheyear,therewerenotransactionswithrelatedpartieswhichwere not at arm’s length and not in theordinary course of business as per the provisions ofsection 188 of the Companies Act, 2013 or materiallysignificant or which were in conflict with the interestsof the Company and that require an approval of theCompany’s shareholders in terms of the SEBI ListingRegulations.

Accordingly, the disclosure of the transactions in FormAOC-2 is not applicable to your Company. Further,details on the policy of the company with respect tothe transactions with related parties are given in theCorporate Governance Report. The detailed policy onRelatedPartyTransactionsisavailableonthewebsiteoftheCompany.Further,thedetailsregardingRelatedPartyTransactions are contained inNoteNo. 47&48of theNotes to Financial Statements.

ANNUAL RETURN

Pursuant tosec92(3)of theCompaniesAct,2013readwith Rule 12 of the Companies (Management and Administration) Rules, 2014, the extract of AnnualReturn in form MGT-9 is attached as Annexure-’IV’ to this report and also placed on the website of the Companyatwww.pearlpet.net.

CORPORATE GOVERNANCE REPORT

A Separate report on CorporateGovernance alongwithcertificatefromStatutoryAuditorconfirmingcompliancewith the requirement of Corporate Governance asstipulatedunderSEBI(LODR)Regulations,2015,formsanintegral part of the Annual Report.

CAUTIONARY STATEMENT

Statements in this report, particularly those whichrelatetoManagementDiscussion&Analysis,describingthe Company's objectives, projections, estimates andexpectationsmayconstitute'forwardlookingstatements’within themeaningof applicable laws and regulations.Actual results may differ materially from those eitherexpressed or implied.

ACKNOWLEDGEMENT

TheBoardofDirectorswouldliketoexpresstheirsincereappreciationfortheassistanceandco-operationreceivedfrom the financial institutions, banks, Governmentauthorities,customers,vendorsandmembersduringthe

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yearunderreview.TheBoardsofDirectorsalsowishtoplace on record its deep sense of appreciation for thecommitted services by the Company’s executives, staffandworkers.

Lastbutnotleast,yourDirectorswishtoplaceonrecordtheir warm appreciation to you for your continuoussupport and encouragement.

Place: New Delhi

Date: August14,2019

ForandonbehalfoftheBoardofDirectors

Sd/-

ChandSeth

Chairman & Managing Director

DIN:00002944

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INDUSTRY STRUCTURE AND DEVELOPMENT

The plastics industry in India has developed anddiversified significantly since its inception in 1957.The Indian plastics industry market has now grownto become one of the leading sectors in the country’seconomy,employingmorethan4millionpeople.Indiaisalso one of the world’s top exporters of plastics products. Theindustrymanufacturesandexportsavarietyofrawmaterials, laminates, electronic accessories, medical ware, and consumer goods. These plastic products are exportedtomorethan150countries.

• During April-October 2018, plastics export fromIndiastoodatUS$3.47billionoutofwhichexportsofrawplasticmaterialstoodatUS$2.62billion.

• During April-October 2018, top five importers ofIndian plastic products were China (US$ 553.42million),US(US$234.76million), Italy(US$188.31million), Bangladesh PR (US$ 168.33 million) andUAE(US$159.02million).

• The Indian plastics industry produces and exportsa wide range of raw materials, plastic-mouldedextruded goods, polyester films, moulded / softluggage items, writing instruments, plastic wovensacks and bags, polyvinyl chloride (PVC), leathercloth and sheeting, packaging, consumer goods,sanitary fittings, electrical accessories, laboratory/ medical surgical ware, tarpaulins, laminates, fishnets,travelware,andothers.

• TheIndianplasticsindustryoffersexcellentpotentialin terms of capacity, infrastructure and skilledmanpower. It is supported by a large number ofpolymer producers, and plastic processmachineryandmouldmanufacturersinthecountry.

• Among the industry’s major strengths is theavailability of raw materials in the country. Thus,plasticprocessorsdonothavetodependonimports.Theserawmaterials,includingpolypropylene,high-densitypolyethylene,low-densitypolyethyleneandPVC,aremanufactureddomestically.

RECENT DEVELOPMENT

At present the plastic industry is around Rs 2.25 lakhcrore, according to theAll-India PlasticsManufacturersAssociation which expects with the right kind ofgovernmentsupportitcandoubletoRs5lakhcroreoverthe next five years. The application of plastics can befoundinalmosteverysectorsuchasmedical,aerospace,

automotive, packaging, household appliances,constructionandmanymore.

Theindustryisdrivenbykeyfactorslikerisingpopulation,increaseinincomelevelsandchanginglifestyles.Demandfromruralsectorforpackagedproductsisbeingfuelledby increasingmedia penetration through themeansofinternetandtelevision.

Indiaisagrowingmarketforplasticsandconsumesabout12.8milliontonnesofplasticsannuallyagainsttheglobalconsumptionof285milliontonnesperyear.

However, the India’s economic growth has slowed to6.8%in2018-19,whichhasresultedinlowervolumebytheCompany.

OPPORTUNITIES AND THREATS

TheuseofPETpackagingproducts is increasingdaybyday.Changinglifestyle,urbanizationarepushingFMCGsectortousePETPackagingproductsinnewinnovativeand trending ways to increase the sales by attractingthe end users of the final products. Keeping in viewthe increased demand in PET packaging products, theCompanycontinuouslyworkondevelopingtheproductsintrendingwaystoattractthemoreandmorecustomers.

However, despite having a good growth potential, theplastic packaging industry facesmany threats in termsof health hazards, government bans, fluctuating rawmaterial prices and competition. Some of the playerspresent in the industry follow unethical practices toincrease the revenue by selling poor quality productswhich may look similar but are hazardous to theenvironment.

To overcome these challenges, significant efforts willhavetobemadebyallthestakeholderstorealizetherealpotentialofthisindustry.

InarecentreportofCouncilofScientificand IndustrialResearch(CSIR), ithasdeclaredPETmaterialtobesafeforstorageofwaterandpackagingoffoodproducts.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Industrial Relations with staff and workmen at HeadOffice and across all the plants, viz. Mahad, Baddi,Jigani, Pant Nagar and Guwahati continued to becordial. Your Company has successfully aligned humancapitalwithbusinessandorganizationalobjectives.Theemphasishasbeenonteamwork,skilldevelopmentanddevelopmentofleadershipandfunctionalcapabilitiesoftheemployees.Thereare455employees including theExecutiveDirectorsrecordedontherollofCompany

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

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OPERATIONS AND FINANCIAL REVIEW

The operations and financial review is covered in theBoard’s Report and is to be read as a part of this report itself.

SEGMENT-WISE PERFORMANCE

YourCompanyisoperatingonlyinonesegment.

RISK MANAGEMENT

TheCompany is also exposed to several potential risksboth from internal andexternal sources.Byaddressingthe risk in its nascent stages allows for long-termcorporatesuccess.Riskssuchasindustrysegmentrisks,technologicalchanges,politicalrisks,productdistributionandsupplycanbeanticipatedandcurbed.

YourCompanybelievesthattheproductsshouldnotbehazardoustotheenvironment.OurproductsaremadeofvirginplasticswhichareuniversallyapprovedbyUSFDA,EUDirective2002/72/EC,BISIS:12252-1987andotherregulatingbodiesforFood,BeverageandWaterstorage.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements have been prepared inaccordance with Ind AS notified under the Companies(IndianAccountingStandards)Rules, 2015as amendedand notified under Section 133 of the Companies Act,2013 (“the Act”) and other relevant provisions of theAct andother accountingprinciples generally acceptedinIndia.

BUSINESS OUTLOOK

Plastics are emerging as wonder material for modernsociety with its versatile applicability, adherence toregulatorystandardsandbetteraestheticvalueadditiontoendproducts.Plasticsarechangingthewayinwhichwe are living our everyday lives. Utility of plastics asalternative materials in replacement of traditionalmaterials are increasingly being explored in variousareasduetodifferentbenefitsofferedbyitsuselikelightweights,highstrength,reusabilityetc.

With the increasedemand in lightweightodorlessPETPackagingproducts,atremendousgrowthisexpectedintheplasticprocessingindustryinthecomingyears.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The Company has in place adequate internal financialcontrols with reference to financial statements. Duringtheyearunderreview,nomaterialweaknessinthepolicyorprocedureswasobserved. YourCompanyhasput inplaceanindependentinternalauditsystemconductedbyaprofessionalfirmthatconductsregularauditstoensureadequacyofinternalfinancialcontrolsystem,adherencetoCompanypoliciesandcompliance.

Place: New DelhiDate:August14,2019

ForandonbehalfoftheBoardofDirectorsSd/-

ChandSethChairman & Managing Director

DIN:00002944

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ANNEXURE-‘I’

STATEMENTOFDISCLOSUREOFREMUNERATIONUNDERSECTION197OFTHECOMPANIESACT,2013RULE5OFTHECOMPANIES(APPOINTMENTANDREMUNERATIONOFMANAGERIALPERSONNEL)RULES,2014

(1) RatiooftheremunerationofeachDirectortothemedianremunerationoftheemployeesoftheCompanyforthefinancialyear2018-2019:

MedianremunerationofalltheemployeesoftheCompanyfortheFinancialyear2018-19

Rs.2,26,228/-

ThenumberofpermanentemployeesontherollsofCompany. 455

NameoftheDirector Designation RatioofremunerationofDirectorstoMedianremunerationofall

EmployeesMr. Chand Seth Chairman & Managing Director 21.02Mr. Varun Seth Whole Time Director 15.46Mr. Ramesh Mehra Whole Time Director 5.36Mr.RaviKumarMehra NonExecutiveandIndependentDirector N.A.Ms. Meera Johri NonExecutiveandIndependentDirector N.A.Mr.AshishBhuva NonExecutiveandIndependentDirector N.A.PercentageincreaseinremunerationofeachDirector,CFO,CEO,CSorManager,ifany,intheFinancialYear2018-2019

NameoftheDirectors Designation 2018-2019Percentageincrease/decrease

Salary P.A.Mr. Chand Seth Chairman & Managing

Director 47,55,000 -19.94

Mr. Varun Seth Whole Time Director 34,97,239 -10.03Mr. Ramesh Mehra Whole Time Director 12,11,880 -12.18Mr.RaviKumarMehra* Independent&Non

ExecutiveDirector - NA

Mr.AshishHarishBhuva* Independent&NonExecutiveDirector - NA

Ms.MeeraJohri* Independent&NonExecutiveDirector - NA

Mr.DineshKumarTak ChiefFinancialOfficer 12,60,000 0Ms.Priyanka CompanySecretary 5,20,000 15.29%*Duringtheyear,noIndependentandNonExecutiveDirectorispaidanyremunerationexceptsittingfeeasmentionedintheCorporateGovernanceSectionoftheAnnualReport.

PercentageincreaseintheMedianRemunerationofEmployeesintheFinancialYear2018-2019:

2018-2019 2017-2018 Increase%226228 204480 10.63

Duringtheyear,therewasnopercentageincreaseinthesalaryofanyManagerialPersonnelexcept15.29%inthesalaryofMs.Priyanka,theCompanySecretaryoftheCompany.Further,therewasnopercentageincreaseintheaggregatesalaryofemployeesduringtheyear.

AffirmationthattheremunerationisaspertheremunerationpolicyoftheCompany.

WeaffirmthatremunerationpaidbytheCompanyisaspertheRemunerationpolicyoftheCompany.

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201918

2. Thenamesofthetoptenemployeesintermsofremunerationdrawn:

Name Age Designation Remuneration(PerAnnum)

Qualification Experienceinyears

DateofCommencementofemployment

PreviousEmployment

heldChand Seth 75 Chairman

and Managing Director

47,55,000 B. Tech (Mech.) and

MS

47.6 23rdFebruary,1971

Not applicable

Varun Seth 46 Whole-timeDirector

34,97,239 B. Tech 25.2 01stJuly,2006 Not applicable

UditSeth 39 ExecutiveDirector

22,03,200 B.Sc. 12.5 01st April, 2006 Not applicable

Amit Seth 48 ExecutiveDirector

22,03,200 B.B.A. 25.2 01stJuly,1993 Not applicable

PratapKumarPalo

37 Chief Manager

(B&D)

17,82,372 MBA & PGDM(MKT

&FIN)

10 02ndMay,2015 ClearMipackPackaging

SolutionLtd.Anurag Gupta

51 DeputyGeneral

Manager(GPTechnical)

14,84,384 B.Sc., B. Tech 28 14th June, 1991 Not Applicable

SanjaySharma

34 Chief Manager (Mould

Sourcing & Innovation)

14,77,920 POSTDIPINPMD(PD-PMD)

11 21stNovember,2016

Mahindra & MahindraLtd.

A. Mohan Rao

47 DeputyGeneral

Manager (Works)

14,75,624 B.E. (Mech.) 24 24thJuly,2015 OvobelFoodsLtd.

Dilip Talwalkar

69 General Manager

(Marketing&Sales)

14,74,168 B.Sc., MBA 39 1st July,1994 JBAPrintingInksLtd.

DhrubaJyotiBhattacharya

53 Chief Manager

14,14,160 M. Sc., MBA 26th December, 2018

AlplaIndiaPvt.Ltd.

7




Not Applicable




















7




Not Applicable




















2018-201919

ANNEXURE-‘II’

A. CONSERVATION OF ENERGY

I. Thestepstakenorimpactonconservationofenergy;

Energyefficiencyisthekeyforprosperousfuture.Incurrentscenariowhenfuel&electricitycostsareskyhighitbecamemandatorythatweconserveenergyuptomaximumextentpossible.WeatPearlPolymersarecommittedtoadoptconservationofenergyateverylevel,atoffices&manufacturingunits.Inourendeavorofmakingouroperationsmoreenergyefficient&environmentfriendly,followingstepshavebeentakenduringlastyear:

i. Highcapacitypumpsusedforcirculationofcoldwaterthroughallmachinesandequipmentsareoneofthemostpowerconsumingapparatusinourindustry.Weareplanningtochangethesepumpsbystateoftheart,energyefficientpumps,tosaveapprox20to25%powerwithoutdeterioratingdesiredflowrequirements.

ii. Toachieveanaveragepowerfactorof0.99,AutomaticPowerFactorControlpanelsarebeinginstalledatallfactories.Apartfromthis,measuresarealsobeentakentominimizeharmonicsgenerationinplantpower circuit.

iii. Apartfromaboveallpossibleeffortsarebeingmadetoreducepowerconsumptionondifferentmachines.

II. ThestepstakenbytheCompanyforutilizingalternatesourcesofenergy;

Wehavestartedbuyingelectricalpowerfrompowerexchange(Solarandwindpower)forourplants.

III. Thecapitalinvestmentonenergyconservationequipments;

We have invested significant amount of funds in creating infrastructure for buying power from powerexchange.Wearealsoincurringsignificantamountonmodernizationofourmachineandutilityequipments.

B. TECHNOLOGY ABSORPTION

I. Theeffortsmadetowardstechnologyabsorption;

i. Weareworkingonconcepts/products,whichwillpromotetheusageofplasticpackinginvariousfieldsforwhichpresentlyGlass/Metalarebeingused.

ii. WehaveinstalledstateoftheartFinishedGoodsconveyorsystemforbetterefficiency,reducingmanuallabour and carton damages.

II. Thebenefitsderivedlikeproductimprovement,costreduction,productdevelopmentorimportsubstitution;

Wesuccessfullymanagedtoreducethemanpowercostbyadoptingabovestep.

III. Incaseofimportedtechnology(importedduringthelastthreeyearsreckonedfromthebeginningofthefinancialyear);

TheCompanyhasnotimportedanytechnologyduringthelastthreeyears.

IV. TheexpenditureincurredonResearchandDevelopment;

Toreduceourrejectionlevelsandenhancecustomersatisfactionlevel,wehaveimprovedthequalityofourproductsbymakingthesignificantdevelopmentinmoulds.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

The Company has recorded export earnings of Rs. 105.30 Lakhs, import payments of Rs. 3535.47 Lakhs andexpenditureinforeigncurrencyofRs.7.60Lakhs,detailsofwhichhavebeenincorporatedinnoteno.40to42totheNotestofinancialstatements.

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201920

To,TheMembers,Pearl Polymers Limited,A-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020

IwasappointedbytheBoardofDirectorsofM/s.PearlPolymersLimited(hereinaftercalledtheCompany)intheBoardMeetingheldon14.02.2018toconductSecretarialAuditonCompulsorybasis for thefinancialyearof theCompanyendedon31st March, 2019.

IhaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsand the adherence togood corporate practices by the Company. SecretarialAudit was conducted in amanner that providedme areasonablebasisforevaluatingthecorporateconducts/statutory compliances and expressing my opinionthereon.

Management’s Responsibility for SecretarialCompliances

The Company’s Management is responsible forpreparationandmaintenanceofSecretarialrecordsandfordevisingpropersystemtoensurecompliancewiththeprovisionsofapplicablelawsandregulations.

Auditor’sResponsibility

My responsibility is to express an opinion on theSecretarial records, Standards, Procedures followed bytheCompanywithrespecttoSecretarialCompliances.

Opinion

Based on my verification of the Company’s books,papers, minute books, forms and returns filed andother records maintained by the Company and alsothe information provided by the Company, its officers,agents and authorized representatives during theconductof SecretarialAuditandsubjecttoManagementRepresentationLetter,I herebyreportthatinouropinion,theCompanyhas, during the audit period covering thefinancial year ended on31.03.2019,generallycomplied

with thestatutoryprovisions listedhereunderandalsothat the Company has in proper Board-processes andcompliance-mechanism in place to the extent, in the mannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsand returns filed and other recordsmaintained by theCompanyforthefinancialyearendedonMarch31,2019accordingtotheprovisionsof:

(i) The Companies Act, 2013 (the Act) and the rulesmadethereunder,asapplicable;

(ii) The Securities Contracts (Regulation) Act, 1956(‘SCRA’)andtherulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

(iv) Foreign Exchange Management Act, 1999 andthe rules and regulationsmade thereunder to theextentofForeignDirectInvestment,OverseasDirectInvestment and External Commercial Borrowings; (not applicable since there is no action/ event in pursuance of said regulation)

(v) The following Regulations and Guidelinesprescribed under the Securities and ExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

(a) The Securities and Exchange Board of India(Substantial Acquisition of Shares andTakeovers)Regulations,2011;

(b) Securities and Exchange Board of India(Prohibition of Insider Trading) Regulations,2015;

(c) The Securities and Exchange Board of India(IssueofCapitalandDisclosureRequirements),Regulations2009(upto10thSeptember2018)andTheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations, 2018(with effect from 11th September 2018); (not applicable during theAuditPeriod);

ANNEXURE-‘III’

Form No. MR-3SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31.03.2019[Pursuant to Section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 as amended]

7




Not Applicable




















7




Not Applicable




















2018-201921

(d) The Securities and Exchange Board of India(Share Based Employee Benefits) Regulations,2014;(not applicable since there is no action/ event in pursuance of said regulation)

(e) The Securities and Exchange Board ofIndia (Issue and Listing of Debt Securities)Regulations,2008;asamended(not applicable since there is no action/ event in pursuance of said regulation)

(f) The Securities and Exchange Board of India(Registrars to an Issue and Share TransferAgents) Regulations, 1993 regarding theCompanies Act and dealing with client; (not applicable)

(g) The Securities and Exchange Board of India(Delistingof Equity Shares) Regulations,2009;(not applicable since there is no action/ event in pursuance of said regulation)

(h) The Securities and Exchange Board of India(Buyback of Securities) Regulations, 1998(upto 10thSeptember2018)andTheSecuritiesand Exchange Board of India (Buyback ofSecurities)Regulations,2018(witheffectfrom11th September 2018); (not applicable during the Audit Period) and

(i) SecuritiesandExchangeBoardofIndia(ListingObligations and Disclosure Requirements)Regulation,2015

The Company has identified and confirmedthefollowinglawsspecificallyapplicabletotheCompanyand/orfollowedbytheCompany:

(i) TheEmployees’ProvidentFundsandMiscellaneousProvisionsAct,1952

(ii) TheEmploymentExchange(CNV)Act,1959&Rules,

(iii) ThePaymentofBonusAct,1965

(iv) ThePaymentofGratuityAct,1972

(v) TheEmployeesStateInsuranceAct,1948,

(vi) LabourWelfareFundAct

(vii) ContractLabour(R&A)Act,1970

(viii)PackagedCommodityRules,1977

(ix) Air(Preventionandcontrolofpollution)Act,1981

(x) Water (Prevention and control of pollution) Act,1974

(xi) EnvironmentprotectionAct,1986

(xii) FactoriesAct,1948

(xiii) MinimumWagesAct,1948

(xiv)TheLegalMetrologyAct,2009

(xv) TradeMarkAct,1999

(xvi) Design Act, 2000

(xvii)EqualRemunerationAct,1976 Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) Secretarial Standards issued by The Institute ofCompany Secretaries of India onMeetings of theBoardofDirectorsandGeneralMeeting.

(ii) Listing Agreements entered into by theCompany with National Stock Exchange ofIndia Limited (Scrip Code: PEARLPOLY) and theBombay Stock Exchange (Scrip Code: 523260). During the period under review the Companyhas generally complied with the provisionsof the Act, Rules, Regulations, Guidelines,Standards, etc. as mentioned herein: IfurtherreportthatthecompliancebytheCompanyof applicable financial laws such as direct andIndirect tax laws and maintenance of financialrecords and books of accounts have not beenreviewed in this audit since the same have beensubject to review by Statutory Financial Auditors,InternalAuditorsandotherdesignatedprofessional. Ifurtherreportthat

1. The Board of Directors of the Company is dulyconstituted with proper balance of ExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors. The changes in the composition, if any,oftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

2. AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendawere sent at least seven days in advance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationson theagenda itemsbeforethemeetingandformeaningfulparticipationatthemeeting.

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201922

3. Majority decision is carried through while thedissenting members’ views are captured andrecorded as part of the minutes.

Ifurtherreportthatbasedoninformationprovidedandalso on the reviewof compliance certificates/reportstaken on record by the Board of Directors of theCompany,inmyopinionthereareadequatesystemsandprocesses in theCompanycommensuratewith the sizeandoperationsof theCompany tomonitorandensurecompliancewith applicable laws, rules, regulations andguidelines.

I further report that during the financial year underreview:

TheCompanyhasre-appointedMr.VarunSethasWholeTimeDirectorforfurtherperiodof3yearsw.e.f.July01,2018.

Except the above, there were no other specific eventshaving any major bearing on the Company’s affairs inpursuanceofthelaw,regulations,guidelines,standards,etc,referredtoabove.

Place: New DelhiDate:07.08.2019

Sd/-RashmiSahni

PracticingCompanySecretaryMembership No: 25681

CertificatePracticeNo.10493

7




Not Applicable




















7




Not Applicable




















2018-201923


Sd/-RashmiSahni

PracticingCompanySecretaryMembership No: 25681

CertificatePracticeNo.10493

AnnexureA

To, The MembersPearlPolymersLimited,A-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020

Ourreportofevendateistobereadalongwiththisletter:

1. MaintenanceofSecretarialrecordistheresponsibilityofthemanagementoftheCompany.Ourresponsibilityistoexpress an opinion on these Secretarial records based on our audit.

2. IhavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.TheverificationwasdoneonthetestbasistoensurethatcorrectfactsarereflectedinSecretarialrecords.Ibelievethattheprocessesandpractices,wefollowedprovideareasonable basis for our opinion.

3. IhavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.

4. Whereeverrequired,IhaveobtainedtheManagementRepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

5. The Compliance of the provisions of corporate and other applicable laws, and regulations, standards is theapplicabilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAuditReportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201924

ANNEXURE-‘IV’

Form No. MGT-9

ExtractofAnnualReturnforthefinancialyearendedonMarch31,2019

[Pursuanttosection92(3)oftheCompaniesAct,2013 and Rule 12(1) of the Companies (ManagementandAdministration)Rules,2014]

I. REGISTRATION AND OTHER DETAILS:

Sl No. Particulars Details1. CIN L25209DL1971PLC0055352. RegistrationDate 12.02.19713. NameoftheCompany PearlPolymersLimited4. Category/Sub-categoryoftheCompany PublicListedCompanyhavingShareCapital5. AddressoftheRegisteredoffice&

contact detailsA-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020Phone:011-47385300

6. WhetherListedCompany Yes7. Name, Address and contact details of the

Registrar & Transfer AgentMAS SERVICES LIMITEDT-34,2ndFloor,OkhlaIndustrialArea,Phase-II,NewDelhi-110020Ph:011-26387281/82/83Fax:011-26387384Email:[email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoveroftheCompany:

S. No.

Name&DescriptionofMainproducts/services

NICCodeoftheproduct/service

%totalturnoverofthecompany

1 PET/PPJars,Bottlesetc 22203 100%

III. PARTICULARSOFHOLDING,SUBSIDIARYANDASSOCIATECOMPANIES:Not Applicable

IV. SHARE HOLDING PATTERN (EquityShareCapitalBreakupaspercentageofTotalEquity):

a) Category-wiseShareHolding

CategoryofShareholders

No.ofSharesheldattheBeginningoftheyear

[AsonApril01,2018]

No.ofSharesheldattheEndoftheyear[AsonMarch31,2019]

Demat Physical Total %ofTotalShares


A. Promoters(1) Indiana)Individual/HUF 3404727 0 3404727 20.22 3284727 41950 3326677 19.76b)CentralGovt 0 0 0 0 0 0 0 0c)StateGovt(s) 0 0 0 0 0 0 0 0d) Bodies Corp. 5662113 0 5662113 33.64 5782113 0 5782113 34.35e)Banks/FI 0 0 0 0 0 0 0 0f)Anyother 0 0 0 0 0 0 0 0SubTotal(A)(1): 9066840 0 9066840 53.86 9066840 41950 9108790 54.11(2)Foreigna)NRIs-Individuals 0 0 0 0 0 0 0 0b)OtherIndividuals 0 0 0 0 0 0 0 0c) Bodies Corp. 0 0 0 0 0 0 0 0

7




Not Applicable




















7




Not Applicable




















2018-201925



[AsonApril01,2018]




d)Banks/FI 0 0 0 0 0 0 0 0e)AnyOther 0 0 0 0 0 0 0 0Sub-Total(A)(2) 0 0 0 0 0 0 0 0TotalShareholdingofPromoter(A)=(A)(1)+(A)(2)

9066840 0 9066840 53.86 9066840 41950 9108790 54.11

B.PublicShareholding1)Institutionsa) Mutual Funds 0 5410 5410 0.03 0 5410 5410 0.03b)Banks/FI 300 160 460 0.00 300 160 460 0.00c)CentralGovt 0 0 0 0 0 0 0 0d)StateGovt(s) 0 0 0 0 0 0 0 0e) Venture Capital Funds

0 0 0 0 0 0 0 0

f)InsuranceCompanies

451422 0 451422 2.68 451422 0 451422 2.68

g)FIIs 0 8700 8700 0.05 0 8700 8700 0.05 h) Foreign Venture Capital Funds

0 0 0 0 0 0 0 0

i)Others(specify) 0 0 0 0 0 0 0 0Sub-total(B)(1):- 451722 14270 465992 2.76 451722 14270 465992 2.762)Non-Institutionsa) Bodies Corporatei)Indian 894435 22551 916986 5.45 921298 22351 943649 5.61ii)Overseas 0 0 0 0 0 0 0 0b)Individualsi)Individualshareholders holding nominal share capital uptoRs.1lakh

1995302 780544 2775846 16.49 2028918 741691 2770609 16.45

ii)Individualshareholders holding nominal share capital inexcessofRs.1lakh

3194794 94550 3289344 19.54 3230685 52600 3283285 19.50

c)Others(specify) 0 0 0 0 0 0 0 0NonResidentIndians/OverseasCorporateBodies

18084 203600 221684 1.32 17847 203600 221447 1.32

ForeignNationals 0 0 0 0 0 0 0 0NBFCs registered with RBI

351 0 351 0 1145 0 1145 0.01

Clearing Members 97889 0 97889 0.58 40015 0 40015 0.24Trusts 0 0 0 0 0 0 0 0Foreign Bodies - D R 0 0 0 0 0 0 0 0Sub-total(B)(2):- 6200855 1101245 7302100 43.38 6239908 1020242 7260150 43.13

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201926



[AsonApril01,2018]




TotalPublicShareholding(B)=(B)(1)+(B)(2)

6652577 1115515 7768092 46.14 6691630 1034512 7726142 45.89

C. Shares held by CustodianforGDRs& ADRs

0 0 0 0 0 0 0 0

GrandTotal(A+B+C) 15719417 1115515 16834932 100.00 15758470 1076462 16834932 100.00b) ShareholdingofPromoter(includingPromoterGroup)

Sl No.

Shareholder’s Name

No.ofSharesheld %changeinshareholdingduringthe

year

Beginningoftheyear[April01,2018]

Endoftheyear[March31,2019]

No.ofShares

%oftotal

Shares ofthe

Company

%ofSharesPledged /

encumberedto total shares

No.ofShares

%oftotal

Shares ofthe

Company

%ofSharesPledged /

encumberedto total shares

1 Ms. Suneeta Seth 774939 4.60 0 654939 3.89 0 (0.71)2 Mr. Chand Seth 890475 5.29 0 890475 5.29 0 03 Ms.NidhiChoudhary 90000 0.53 0 100350 0.60 0 0.074 Mr. Varun Seth 597778 3.55 0 608311 3.61 0 0.065 Mr. Amit Seth 562000 3.34 0 572533 3.40 0 0.066 Mr.UditSeth 489535 2.91 0 500069 2.97 0 0.067 PacificPearlFinance&

LeasingLtd1116001 6.63 0 1236001 7.34 0 0.71

8 PearlTelefonicsLtd 2328257 13.83 0 2328257 13.83 0 09 ThetaInvestmentsPvtLtd 2063855 12.26 0 2063855 12.26 0 0

10 PearlFlats(India)Ltd 154000 0.91 0 154000 0.91 0 0c) ChangeInPromoter’sShareholding

ParticularsofShareholdingShareholdingatthe

beginningoftheYear[April01,2018]

CumulativeShareholdingduringtheyear[April01,2018toMarch

31,2019]%ChangeinShareholdingduringthe

yearNo.ofshares

%oftotalsharesoftheCompany

No.ofshares


1. Ms. Suneeta SethAtthebeginningoftheyear 774939 4.60 774939 4.60 0Sharessoldon25.04.2018 70000 0.41 704939 4.19 (0.41)Sharessoldon27.04.2018 50000 0.30 654939 3.89 (0.71)Attheendofyear - - 654939 3.89 (0.71)2.NidhiChoudharyAtthebeginningoftheyear 90000 0.53 90000 0.53 0Sharesacquiredon28.03.2019asbeneficiaryconsequentupondissolutionofHUF.

10350 0.06 100350 0.59 0.06

Attheendofyear - - 100350 0.59 0.06

7




Not Applicable




















7




Not Applicable




















2018-201927

ParticularsofShareholdingShareholdingatthe

beginningoftheYear[April01,2018]

CumulativeShareholdingduringtheyear[April01,2018toMarch

31,2019]%ChangeinShareholdingduringthe

yearNo.ofshares


No.ofshares


3.Mr.VarunSethAtthebeginningoftheyear 597778 3.55 597778 3.55 0Sharesacquiredon18.03.2019asbeneficiaryconsequentupondissolutionofHUF.

10533 0.06 608311 3.61 0.06

Attheendofyear - - 608311 3.61 0.064.Mr.AmitSethAtthebeginningoftheyear 562000 3.34 562000 3.34 0Sharesacquiredon18.03.2019asbeneficiaryconsequentupondissolutionofHUF.

10533 0.06 572533 3.40 0.06

Attheendofyear - - 572533 3.40 0.065.Mr.UditSethAtthebeginningoftheyear 489535 2.91 489535 2.91 0Sharesacquiredon18.03.2019asbeneficiaryconsequentupondissolutionofHUF.

10534 0.06 500069 2.97 0.06

Attheendofyear - 500069 2.97 0.066.PacificPearlFinance&LeasingLtd.Atthebeginningoftheyear 1116001 6.63 1116001 6.63Sharespurchasedon27.04.2018 70000 0.41 1186001 7.04 0.41Sharespurchasedon03.05.2018 50000 0.30 1236001 7.34 0.71Attheendofyear - - 1236001 7.34 0.71

d) ShareholdingPatternoftop10Shareholders(OtherthanDirectors,PromotersandHoldersofDRs&ADRs)

Sl No.

Shareholder’s Name ShareholdingattheBeginningoftheYear

[April01,2018]

CumulativeShareholdingduringtheyear[April01,2018toMarch31,2019)

%ChangeinShareholdingduringthe

yearNo.ofshares


No.ofshares


1 Mr. Dugar Chainroop 825398 4.90 829450 4.93 0.76

2 Mr.DheerajKumarLohia 164966 0.98 468189 2.78 1.83

3 LifeInsuranceCorporationofIndia 436272 2.59 436272 2.59 0

4 Mr.DeepakSeth 324000 1.92 324000 1.92 0

5 SanchayFincomLtd 206854 1.22 258020 1.53 0.31

6 GlobeCapitalMarketLimited 0 0 168006 0.99 0.99

7 SanchayFinvestLimited 0 0 164699 0.98 0.98

8 Mr.RajKumarLohia 0 0 144112 0.86 0.86

9 Mr.RajendraMadanmalMehta 91206 0.54 143089 0.85 0.31

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201928

10 ShreeSurajResourcesLimited 139265 0.83 140651 0.84 0.01

e) ShareholdingofDirectorsandKeyManagerialPersonnel

Sl No. NameoftheShareholder ShareholdingatthebeginningoftheYear

[April01,2018]

CumulativeShareholdingduringtheyear

[April01,2018toMarch31,2019]No.ofshares %oftotalsharesof

theCompanyNo.ofshares %oftotalsharesof

theCompanyDirectorsandKeyManagerialPersonnel

1 Mr. Chand Seth 890475 5.29 890475 5.29

2 Mr. Varun Seth 597778 3.55 608311 3.61

Note: Apartfromabove,noneofthedirectorsand/orKMPholdsanyshareintheCompany.

V. INDEBTEDNESS:

(Rs.inLakhs)

Particulars SecuredLoansexcludingdeposits

UnsecuredLoans

®Deposits Total Indebtedness

Indebtednessatthebeginningofthefinancialyear i)PrincipalAmount 2812.12 125 1.59 2938.71ii)Interestduebutnotpaid - - - -iii)Interestaccruedbutnotdue 9.31 - - 9.31Total(i+ii+iii) 2821.43 125 1.59 2948.02ChangeinIndebtednessduringthefinancialyear Addition 100.14 54.94 - 155.08-Reduction (439.72) - (0.67) (440.39)NetChange (339.58) 54.94 (0.67) (285.31)Indebtednessattheendofthefinancialyear i)PrincipalAmount 2472.48 179.94 0.92 2653.34ii)Interestduebutnotpaid - - - -iii)Interestaccruedbutnotdue 9.36 - - 9.36Total(i+ii+iii) 2481.84 179.94 0.92 2662.70

Note: ® UnclaimedDepositsareoutstanding.

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

a) RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager

(Rs.inLakhs)

Sl No.

ParticularsofRemuneration NameofMD/WTD/ManagerMr.ChandSeth Mr.VarunSeth Mr. Ramesh Mehra Chairman&

ManagingDirector Whole Time

DirectorWhole Time

Director1 Gross salary a) Salaryasperprovisionscontainedinsection17(1)

oftheIncome-taxAct,196135.55 29.70 12.12

b) Valueofperquisitesu/s17(2)Income-taxAct,1961

12.00 5.27 0

c) Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961

0 0 0

7




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2018-201929

Sl No.

ParticularsofRemuneration NameofMD/WTD/ManagerMr.ChandSeth Mr.VarunSeth Mr. Ramesh Mehra Chairman&

ManagingDirector Whole Time

DirectorWhole Time

Director2 StockOption 0 0 03 SweatEquity 0 0 04 Commission 0 0 0 *Total(A) 47.55 34.97 12.12

CeilingaspertheCompaniesAct,2013 59.40 42.00 18.00* The above remuneration does not include contributionmade to provident and superannuation fund (asmay beapplicable)asperIncomeTaxRules.

b) RemunerationtoNonExecutiveandIndependentDirectors

(Rs.inLakhs)

Sl No.

ParticularsofRemuneration NameoftheIndependentDirector TotalMs. Meera

JohriMr.RaviKumar

MehraMr. Ashish Harish

BhuvaIndependent

DirectorIndependent

DirectorIndependent

Directora) FeesforattendingBoardCommitteeMeetings 0.05 0.20 0.15 0.40b) Commission 0 0 0 0c) Others,Pleasespecify 0 0 0 0

c) RemunerationToKeyManagerialPersonnelotherthanMD/Manager/WTD

(Rs.inLakhs)

Sl No.

ParticularsofRemuneration KeyManagerialPersonnelNameandDesignation Ms.Priyanka Mr.DineshKumar

TakCompanySecretary

(ChiefFinancialOfficer)

1a)

Gross Salary Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct, 1961

5.20 12.60

b) Valueofperquisitesu/s17(2)Income-taxAct,1961 0 0c) Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961 - -2 StockOption - -3 SweatEquity - -4 Commission - -5 Others,pleasespecify - - Total 5.20 12.60

VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES : NIL

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201930

To comply with Regulation 34 read with Schedule Vof the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements as amended)Regulations, 2015 [“SEBI (LODR)Regulations, 2015”],asamended the report containing the details of Corporate GovernanceofPearlPolymersLimited(“theCompany”)isasfollows:

COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE

Companyhasover theyears followedbestpracticesofCorporateGovernance.TheCompanybelievesthatgoodCorporate Governance goes beyond compliance anddisclosures.ThedrivingforcesofCorporateGovernanceat Pearl are transparency, fairness, integrity, equityandaccountability.Doing the ‘right things’ in the ‘rightmanner’ reflects the spirit of CorporateGovernance atPearl. It is a reflection of us - our value system, workculture & thought process.

The Company’s business objective and that of itsmanagement and employees is to manufacture andmarket the Company’s products in such a way as tocreatevaluethatcanbesustainedoverthelongtermforconsumers,shareholders,employees,businesspartnersand the national economy. The Company relentlesslystrives to align its vision and business strategy withthe welfare and best interest of all stakeholders. TheCompany is consciousof the fact that the successof aCorporationisareflectionoftheprofessionalism,conductandethicalvaluesofitsmanagementandemployees.Inadditiontocompliancewithregulatoryrequirements,theCompanyendeavors’toensurethathigheststandardsof

ethical and responsible conduct are met throughout the organization.

THE BOARD OF DIRECTORS

TheprimaryroleoftheBoardistoprotectandenhancelong-termshareholders’value.ItsetstheoverallstrategyfortheCompanyandsupervisesexecutivemanagement.Italsoensuresthatgoodcorporategovernancepoliciesandpractices are implemented in theCompany. In thecourseofdischarging itsduties, theBoardacts ingoodfaith, with due diligence and care, and in the best interestsoftheCompanyanditsshareholders.

Composition

The Board currently comprises six Directors, of whom,three are Executive and other three areNon-ExecutiveIndependentDirectors(includingoneWomanDirector).TheBoardhasanExecutiveChairperson.

According to Regulation 17(1)(b) of SEBI (LODR)Regulations, 2015 as well as relevant provisions undertheCompaniesAct, 2013,where theChairperson is anExecutiveDirectororaPromoteroftheCompany,atleastonehalfoftheBoardoftheCompanyshouldconsistofIndependentDirectorsandthisprovisionismetatyourCompany.

AsperRegulation26ofSEBI (LODR)Regulations,2015,none of the Directors on the Company's Board is amember of more than ten committees or Chairpersonofmorethanfivecommitteesacrossalllistedentitiesinwhichhe/sheisaDirector.Allthedirectorshavemadenecessary disclosure regarding Committees positions

CORPORATE GOVERNANCE REPORT

heldbytheminotherlistedentities.

ThecompositionoftheBoardalongwiththeirChairmanshipandMembershipontheBoardCommitteesistabledbelow:

Name/CategoryoftheDirector NumberofDirectorship1

NumberofCommitteepositionsheld²Membership Chairmanship

ExecutiveDirectorMr. Chand Seth (Chairman & Managing Director) 5 1 -Mr. Varun Seth (Whole Time Director) 3 1 -Mr. Ramesh Mehra (Whole Time Director) 4 4 -Non-ExecutiveIndependentDirectorMs.MeeraJohri(IndependentDirector) 1 1 1Mr.RaviKumarMehra(IndependentDirector) 1 1 1Mr.AshishHarishBhuva(IndependentDirector) 2 - -

1. Directorshipinprivatecompanies,foreigncompaniesandcompaniesregisteredunderSection8oftheCompaniesAct,2013areexcludedintheabovetable.

2. For the purpose of reckoning the limit, membership/ chairpersonship of Audit Committee and Stakeholders’RelationshipCommitteehavebeenconsidered.

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2018-201931

3. Mr.ChandSethandMr.VarunSetharerelatedtoeachother.

4. NoneoftheDirectorsontheBoardisamemberofmorethantenCommitteesorChairpersonofmorethanfiveCommitteesacrossalltheCompaniesinwhichhe/sheisaDirector.

5. NoneoftheIndependentDirectorsontheBoardareservingasanIndependentDirectorinmorethansevenlistedentities.

DIRECTORSHIPS IN OTHER LISTED ENTITIES

NameofotherlistedentitieswheredirectorsoftheCompanyhelddirectorshipsason31March2019

NameoftheDirector NameoftheListedEntity CategoryRamesh Mehra PearlApartmentsLimited NonExecutiveIndependentDirector

ExceptMr.RameshMehra,noneoftheDirectorheldDirectorshipinanyotherlistedentity.

CORE SKILL/EXPERTISE/COMPETENCIES

AsstipulatedunderScheduleVoftheSEBIListingRegulations,coreskills/expertise/competencies,asrequiredinthecontextofthebusinessandsectorforittofunctioneffectivelyandthoseactuallyavailablewiththeBoardhavebeenidentifiedbytheBoardofDirectors.

Chart/Matrixofsuchcoreskills/expertise/competenciesisgivenbelow:

S. No. Skills/Expertise/Competencies1 Management&Strategy2 Operations&Engineering3 CommercialPurchaseandSupplyChain4 Sales&Marketing5 Research&Development6 RegulatoryFrameworkKnowledge7 KnowledgeofPETIndustry8 Identifyingthegrowthareasforexpandingthebusiness9 CorporateGovernance&Ethics

10 FinanceandTaxation11 RiskManagement12 Law13 HumanResources&IndustrialRelations14 InformationTechnology,systemsandcomputers

BOARD MEETINGS

During theFY2018-19, theBoardmet fourtimesviz. onMay29,2018;August14,2018;November14,2018andFebruary14,2019.

Thegapbetweenany twoconsecutivemeetingsof theBoardofDirectorsof theCompanywasnotmore than120days.Theleaveofabsence(“LOA”)wasgrantedtotheDirectorsasandwhenrequestedbythem.TheBoardwasmadeavailablewithnecessaryinformationasrequiredtobeplacedbeforetheBoardasperSEBI(LODR)Regulations,2015fortheirdiscussionandconsideration.

Directors’attendanceatBoardmeetingsandtheAnnualGeneralMeetingoftheCompanyheldduringtheyearislistedasfollows:

NameoftheDirector AttendanceattheBoardMeetingsheldon AttendanceatthelastAGMheldon28.09.201829.05.2018 14.08.2018 14.11.2018 14.02.2019

Mr. Chand Seth Yes LOA LOA LOA YesMr. Varun Seth Yes Yes Yes Yes YesMr. Ramesh Mehra LOA Yes Yes Yes NoMr.AshishHarishBhuva LOA Yes Yes Yes NoMs. Meera Johri Yes LOA LOA LOA Yes

6















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2018-201932

Mr.RaviKumarMehra Yes Yes Yes Yes YesINDEPENDENTDIRECTORS(ID)

SeparateMeetings

In line with the mandate given in the Companies Act,2013 and SEBI (LODR) Regulations, 2015, separatemeeting of Independent Directorswas held during theyear,withoutthepresenceofNonIndependentDirectorsand the Management of the Company. During themeeting,theDirectorsdiscussed,amongothermatters,the performance of the Company, Non IndependentDirectors/Board, Chairperson and flow of informationtotheBoard,competition,strategy,leadershipstrengthsandweaknesses,governance,complianceandsuchotherrelevantmatters.

TenureofIndependentDirectors

The tenure of the Independent Directors is fixed inaccordance with the requirements laid down in the Companies Act, 2013 and clarifications/circulars issuedbytheMinistryofCorporateAffairs,inthisregard,fromtimetotime.

BOARDFAMILIARIZATIONPROGRAMME

As required under Regulation 25(7) of the SEBI (LODR)Regulations, 2015, the Company has a familiarizationprogramme for the independent directors. The details of the familiarization programme are available on theCompany’swebsiteatthelinkwww.pearlpet.net.

CODE OF CONDUCT

TheCompany'sCodeofConductprovidesguidelines tobe followed by all members of the Board of Directorsand Senior Management Personnel. The Company hasreceived confirmations from allmembers of the Boardof Directors as well as Senior Management Personnelregarding compliance of the Code during the year. AdeclarationsignedbyChairpersonandManagingDirectortothiseffectisannexedtothisreport.

BOARD COMMITTEES

TheBoarddelegatesitspowersandauthoritiesfromtimetotimetocommitteesinordertoensurethatoperationalefficiency and specific issues are being handled withrelevant expertise. All decisions and recommendationsof the Committees are placed before the Board forinformationorapproval.

The following four Board Committees have been

establishedandeachofthemhasitsspecificdutiesandauthoritiessetoutinitsowntermsofreference.

A)MandatoryCommittees B)NonMandatoryCommitteesi)AuditCommitteeii)Stakeholders'RelationshipCommitteeiii)NominationandRemunerationCommittee

i)FinanceCommittee

A) MANDATORYCOMMITTEE

(i) AuditCommittee

The objective of the Audit Committee is to monitor and effectively supervise the Company’s financialreportingprocesswithaviewtoprovideaccurate,timelyandproperdisclosures.Duringtheunderreview,inlinewiththeprovisionsoftheSEBIListingRegulations,asamended,thetermsofreferenceoftheCommitteewererevisedbytheBoardatitsmeetingheldon14thFebruary,2019.TherevisedtermsofreferenceareinaccordancewiththeCompaniesAct,2013andtheSEBIListingRegulations.ThedetailedtermsofreferenceofauditcommitteehavebeenplacedontheCompany’swebsiteatwww.pearlpet.net.

Composition

ThecompositionoftheAuditCommitteeisaspertheprovisionsofCompaniesAct,2013andSEBI(LODR)Regulations,2015.TheCommitteecomprisedofThree(3)Membersnamely,Mr.RaviKumarMehraasChairpersonandMs.MeeraJohri, Mr. Varun Seth as Members.

TheCompanySecretaryactsasaSecretarytotheCommittee.ThemembersofAuditCommitteecomprisesofmajorityofIndependentDirectors.AlltheMembersoftheAuditCommitteehavetherequiredqualificationandexpertiseforappointmentontheCommitteeandpossessrequisiteknowledgeofaccountingandfinancialmanagement.

Meetings

ThemembersoftheAuditCommitteemetfourtimesduringtheyear.Thedetailsofattendancerecordsofthemembers

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2018-201933

oftheAuditCommitteeareasfollows:

NameoftheDirector CategoryofDirector AttendanceattheMeetingsheldon29.05.2018 14.08.2018 14.11.2018 14.02.2019

Mr.RaviKumarMehra IndependentDirector Yes Yes Yes YesMs. Meera Johri IndependentDirector Yes LOA LOA LOAMr. Varun Seth ExecutiveDirector Yes Yes Yes Yes(ii)Stakeholders'RelationshipCommittee

PursuanttotheCompaniesAct,2013andtheSEBIListingRegulations,theCompanyhasconstitutedaStakeholders’Relationship Committee. This Committee was constituted to specifically look into the process of share transfers,grievancesofsecurityholders,ifany,andalsoreviewstheworkingofCompany’sRegistrar&ShareTransferAgent.

Duringtheunderreview,inlinewiththeprovisionsoftheSEBIListingRegulations,asamended,thetermsofreferenceoftheCommitteewererevisedbytheBoardatitsmeetingheldon14thFebruary,2019.ThedetailedtermsofreferenceofcommitteehavebeenplacedontheCompany’swebsiteatwww.pearlpet.net.

Composition

ThecompositionoftheStakeholders’RelationshipCommitteeisaspertheprovisionsofCompaniesAct,2013andSEBI(LODR)Regulations,2015.TheCommitteecomprisedofFour(4)MembersnamelyMs.MeeraJohriasChairperson,andMr.RaviKumarMehra,Mr.ChandSethandMr.RameshMehraasMembers.

Meetings

ThedetailsofattendancerecordofthemembersoftheStakeholders'Relationshipcommitteeareasfollows:

NameoftheDirector CategoryofDirector AttendanceattheMeetingsheldon29.05.2018 14.08.2018 14.11.2018 14.02.2019

Ms. Meera Johri IndependentDirector Yes LOA LOA LOAMr.RaviKumarMehra IndependentDirector Yes Yes Yes YesMr. Chand Seth ExecutiveDirector Yes LOA LOA LOAMr. Ramesh Mehra ExecutiveDirector LOA Yes Yes YesDetailsofComplaintsreceivedandResolvedduringthefinancialyear 2018-19:

Sl No.

NatureofComplaints/Requests Complaints/RequestsReceived

Complaints/RequestsResolved

Complaints/RequestsPending

1 Request for Change of Address 25 25 NIL2 Request for Duplicate shares/ Splitting/ Consolidation of

sharecertificates15 15 NIL

3 RequestforDematerialization/Rematerialisationofshares 350 350 NIL4 Request for Share Transfer/Share Transmission 77 77 NIL5 ComplaintsfromStockExchange/SEBI/Depositories NIL NIL NIL6 Miscellaneousrequestincludingredemptionofdebentures,

unclaimeddividend,AnnualReportsetc.7 7 NIL

Further, all the request for transfer of shares has also been processed in time and no transfer were pending forregistration formore than15daysasonMarch31,2019.Ms.Priyanka,CompanySecretarywasdesignatedas the“ComplianceOfficer”oftheCompanyintermsofRegulation6ofSEBI(LODR)Regulations,2015duringtheFY2018-19.Nocomplaints/grievancesarependingforthefinancialyearendedMarch31,2019.

iii. NominationandRemunerationCommittee

During theunder review, in linewith theprovisionsof theSEBI ListingRegulations,asamended, the termsofreferenceoftheCommitteewererevisedbytheBoardatitsmeetingheldon14thFebruary,2019.TherevisedtermsofreferenceareinaccordancewiththeCompaniesAct,2013andtheSEBIListingRegulations.Thedetailed

6















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2018-201934

termsofreferenceofcommitteehavebeenplacedontheCompany’swebsiteatwww.pearlpet.net.

Composition

Thecompositionof theNominationandRemunerationCommittee isasper theprovisionsofCompaniesAct,2013andSEBI(LODR)Regulations,2015.TheCommitteecomprisedofThree(3)MembersnamelyMr.RaviKumarMehraasChairpersonandMs.MeeraJohri,Mr.AshishHarishBhuvaasMembers.

Meetings

The membersof theNominationandRemunerationCommitteemetonetimeduring theyearunder review i.e.on29.05.2018.

ThedetailsofattendancerecordofthemembersoftheNominationandRemunerationCommitteeareasfollows:

Sl No. NameoftheDirector CategoryofDirector AttendanceattheMeetingheldon29.05.2018

1 Mr.RaviKumarMehra IndependentDirector Yes2 Ms. Meera Johri IndependentDirector Yes3 Mr.AshishHarishBhuva IndependentDirector No

REMUNERATION OF DIRECTORS

PECUNIARY RELATIONSHIP/TRANSACTION WITH NON-EXECUTIVE DIRECTORS

Duringtheyearunderreview,therewasnopecuniaryrelationship/transactionwithanynon-executivedirectorsoftheCompany.

CRITERIA OF MAKING PAYMENTS TO NON-EXECUTIVE DIRECTORS

Non-executivedirectorsoftheCompanyplayacrucialroleintheindependentfunctioningoftheBoard.

Theybringinanexternalperspectivetodecision-makingandprovideleadershipandstrategicguidancewhilemaintainingobjectivejudgment.

TheRemunerationPolicy,interalia,disclosingthecriteriaofmakingpaymentstodirectorsandkeymanagerialpersonnelisplacedontheCompany'swebsiteatwww.pearlpet.net.

NON-EXECUTIVE DIRECTORS

Non-executivedirectorsarepaidsittingfeesasearlierstatedinthisReport.

EXECUTIVE DIRECTORS

Duringtheyearunderreview,theCompanypaidremunerationtoMr.ChandSeth,ChairmanandManagingDirector,Mr.VarunSeth,ExecutiveDirector,andMr.RameshMehra,ExecutiveDirectoroftheCompanyasprovidedindetailinFormMGT-9,i.e.extractoftheAnnualReturn.EachDirectorwasentitledtoDirector’sremunerationwhichwasdeterminedbytheBoardwithauthorizationgrantedbytheshareholdersattheCompany’sAGM.TheremunerationofExecutiveDirectorsandSeniorManagementof theCompanywasdeterminedwithreferenceto theCompany’sperformance,profitabilityandpolicy,aswellasremunerationbenchmarksintheindustryandtheprevailingmarketconditions.

RemunerationpaidtoExecutiveDirectorsforthefinancialyear2018-19isasfollows:

(Rs.inLakhs)

Sl No. NameoftheDirector Salary and Allow-ances

Perquisite Incentive/ Stock optionetc.

Total

1 Mr. Chand Seth 35.55 12.00 - 47.552 Mr. Varun Seth 29.70 5.27 - 34.973 Mr. Ramesh Mehra 12.12 - - 12.12

TheabovementionedSalaryandPerquisitesincludesalltheitemsofRemunerationpackageexceptthosewhichareexcludedaspertheprovisionsofscheduleVoftheCompaniesAct,2013.Further,duringtheyear,nocontributiontoSuperannuationFundismadeinrespectofanyDirectorexceptMr.VarunSeth.Apartfromthese,thereisnoanyother

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2018-201935

elementofRemunerationpackage.

SittingfeepaidtoNon-Executive&IndependentDirectorsforthefinancialyear2018-19isasfollows:

(Rs.inLakhs)

Sl No. NameoftheDirector SittingFee Total NoofShares/convertibleinstrumentheld1 Mr.AshishHarishBhuva 0.15 0.15 02 Ms. Meera Johri 0.05 0.05 03 Mr.RaviKumarMehra 0.20 0.20 0

ThesittingfeepaidtoNon-executiveandIndependentDirectorswaswithinthelimitsasprescribedundertheCompaniesAct,2013.NoremunerationotherthanthesittingfeeforattendingBoardmeetingswaspaidtotheNon-ExecutiveandIndependentDirectors.

PerformanceEvaluationCriteria

TheNominationandRemunerationCommitteehasadoptedaPolicyforevaluationoftheBoard,itsCommitteesandDirectorsincludingIndependentDirectorsandthesamehasbeenapprovedbytheBoardofDirectorsoftheCompany.TheprocessforBoardEvaluationisgivenintheBoard'sReport.

B)NONMANDATORYCOMMITTEES

InadditiontotheabovereferredCommittees,theBoardofDirectorshasconstitutedtheFinanceCommitteeofDirectors.

FinanceCommittee

TheFinanceCommitteeofDirectorshasbeenconstitutedbytheBoardofDirectorsoftheCompanywithnecessarypowersdelegatedtoitwithaviewtoconducttheaffairsoftheCompanysmoothly.

During theunder review, in linewith theprovisionsof theSEBI ListingRegulationsandSEBI (Prohibitionof InsiderTrading)Regulations,asamended,theroleandtermsofreferenceoftheCommitteewererevisedbytheBoardatitsmeetingheldon14thFebruary,2019.TherevisedtermsofreferenceareinaccordancewiththesaidRegulations.ThedetailedtermsofreferencehavebeenplacedontheCompany’swebsiteatwww.pearlpet.net.

ThecommitteecomprisedofthreemembersnamelyMr.ChandSethasChairpersonandMr.VarunSeth,Mr.RameshMehra as Member.

Duringthefinancialyear2018-19,theCommitteemetfortnightlytoapprovesharetransfers/transmissionandconsidersuchothermattersasmaybedelegatedtothecommitteebytheBoardfromtimetotime.

MANAGEMENT DISCUSSION AND ANALYSIS

AdetailedreportonManagement’sDiscussionandAnalysisformspartofthisAnnualReport.

GENERAL BODY MEETINGS

AnnualGeneralMeeting

ThedetailsoflastthreeAGMheldandSpecialResolutionpassedthereinareasmentionedbelow:

AGM No. FinancialYear Address DateandTime SpecialResolutionPassed45th 2015-16 A-97/2,Okhla

IndustrialArea,Phase-II,NewDelhi-110020

30.09.201611.30A.M. Nil46th 2016-17 29.09.201711.30A.M. Re-appointment of Mr. Chand as Seth, as

Chairman & Managing Director for further periodofthree(3)years.

47th 2017-18 28.09.201811.00A.M. NilExtra-OrdinaryGeneralMeeting

NoExtra-OrdinaryGeneralMeetingoftheShareholderswasheldduringthefinancialyear2018-19.

E-VOTING FACILITY

TheCompanyextendsthefacilityforRemoteE-votingtotheshareholderstoexercisetheirvotingrightselectronicallyonallresolutionsproposedatensuingAGM.DetailedprocedureforRemoteE-votingisprovidedintheAttendanceSlip,

6















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Not Applicable

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2018-201936

annexed to this Annual Report.

DETAILS OF POSTAL BALLOT

I. SpecialResolutionspassedthroughpostalballot

Duringtheyear,noSpecialResolutionwaspassedthroughpostalballot.

II. SpecialResolutionsproposedtobeconductedthroughpostalballot

NoSpecialResolutionisproposedtobepassedthroughpostalballot.

DISCLOSURES

InsiderTrading

In terms of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’), the Company has acomprehensive Code of Conduct for regulating, monitoring and reporting of trading by Insiders (‘the Code’). ThesaidCode laysdownguidelineswhichprovide for theproceduretobe followedanddisclosureswhilstdealingwithsharesoftheCompany.TheCompanyhadamendedandadopteditsCodeasperSEBI(ProhibitionofInsiderTrading)(Amendment)Regulations,2018.TheCompanyhasalsoputinplacethepolicyonleakageofunpublishedpricesensitiveinformationlayingdowntheprocedure/inquiryincaseofleakofunpublishedpricesensitiveinformationorsuspectedleakofsuchinformationbytheAssociatePersonoftheCompanyandhaveaccesstosuchinformation

RelatedPartyTransactions

AlltransactionsenteredintowithrelatedpartiesasdefinedundertheCompaniesAct,2013andSEBI(LODR)Regulations,2015during theyearwereonanarm’s lengthpricebasisand in theordinary courseofbusiness, thesehavebeenapprovedbytheAuditCommittee.Duringtheyear,theCompanyhadamended/maderevisioninthePolicyonRelatedPartyTransactionsinordertoalignwithamendedListingRegulationsandotherapplicablelaws.TherevisedpolicyonRelatedPartyTransactionsisavailableonthewebsiteoftheCompanyatwww.pearlpet.net. The details of the related partytransactions,asperrequirementofIndianAccountingStandard,aredisclosedinnotestothefinancialstatementsoftheCompany.

COMPLIANCE WITH REGULATIONS

TheCompanyhascompliedwiththerequirementsoftheStockExchanges,SEBIandotherstatutoryauthoritiesonallmattersrelatingtocapitalmarketsduringthelastthreeyears.Therehasbeennoinstanceofnon-compliancewithanylegal requirement.

TheCompanyhascompliedwithmandatoryrequirementsofSEBI(LODR)Regulations,2015andadoptedsomeofthenon-mandatoryrequirements.

Non-Mandatory

i. Modifiedopinion(s)inauditreport

TheCompanyconfirmsthatitsfinancialstatementsarewithunmodifiedauditopinion.

ii. ReportingofInternalAuditor

TheInternalAuditorreportsdirectlytotheAuditCommittee.

CERTIFICATE ON NON-DISQUALIFICATION OF DIRECTORS

TheCompanyhasobtainedacertificate fromMs.RashmiSahni,PracticingCompanySecretarystating thatnoneoftheDirectorsontheboardofthecompanyhasbeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectoroftheCompanybytheBoard/MinistryofCorporateAffairsoranyotherstatutoryauthoritywhichformsthepart of this Annual Report.

VIGIL MECHANISM & WHISTLE BLOWER POLICY

TheCompanyhasdevisedaVigilMechanismthroughWhistleBlowerPolicyforemployeesandotherstakeholderstoreporttheirgenuineconcernsorgrievancestotheChairpersonoftheAuditCommitteeforanyinstanceofunethicalbehavior,actualorsuspectedfraudorviolationoftheCompany'scodeofconduct.Nopersonhasbeendeniedaccessto

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2018-201937

theAuditCommitteeinthisregard.AdetailofPolicyisavailableonCompany’swebsitewww.pearlpet.net.

CEO AND CFO CERTIFICATION

AsrequiredbyRegulation17(8)ofSEBI(LODR)Regulations,2015,Mr.ChandSeth,Chairman&ManagingDirectorandMr.DineshKumarTak,ChiefFinancialOfficerhavegivenappropriatecertificationstotheBoardofDirectorscertifyingthatthefinancialstatementdonotcontainanymateriallyuntruestatementandthesestatementsrepresentatrueandfairviewoftheCompany'saffairs.Thesaidcertificateisannexedtothisreport.

MEANS OF COMMUNICATION

FinancialResults

Thequarterly,half-yearlyandannualfinancialresultsareregularlysubmittedtotheStockExchangesinaccordancewiththeSEBI(LODR)Regulations,2015andaregenerallypublishedinthebelowmentionednewspaper:

i. FinancialExpress(EnglishLanguage)

ii. HariBhoomi(HindiLanguage)

TheresultsarealsopostedontheCompany'swebsitewww.pearlpet.netafteritssubmissiontotheStockExchanges.Theseareavailable inafreelydownloadableformat.TheAnnualReport,Quarterly,Half-YearlyandAnnualFinancialResults,ShareholdingPattern,IntimationoftheBoardMeetingsandotherstatutoryfilingswiththeStockExchangesispostedthroughthefilingsystemoftheBSEListingCentreandNSEElectronicApplicationProcessingSystem(NEAPS)portals.

GENERAL SHAREHOLDERS' INFORMATION

48thAnnualGeneralMeeting

Date and Time September27,2019at11:00A.M.Venue A-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020Dividendpaymentdate Not ApplicableBookClosure September21,2019toSeptember27,2019(Bothdaysinclusive)FinancialCalendarfortheyear2019-20(Tentative)

FinancialYear 2019-20ResultsfortheQuarterending Audited/Un-audited TentativedateofreportingJune30,2019 Un-audited OnorbeforeAugust14,2019September30,2019 Un-audited OnorbeforeNovember14,2019December31,2019 Un-audited OnorbeforeFebruary14,2020March31,2020 Audited OnorbeforeMay30,2020

LISTING OF SHARES

TheEquitySharesoftheCompanyareatpresentlistedonthefollowingStockExchanges:

NameoftheStockExchange StockCode/SymbolBSELimited(BSE)PhirozeJeejeebhoyTowers,DalalStreet,25th Floor,Mumbai-400001

523260

NationalStockExchangeofIndiaLtd.ExchangePlaza,5thfloor,C-1,BlockG,BandraKurlaComplex,Bandra(E)Mumbai–400051

PEARLPOLY

The annual Listing Fee/ Custodial Fee for the financial year 2018-19 have duly been paid to the Stock Exchanges/

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2018-201938

Depositories.

STOCK MARKET DATA FOR THE FINANCIAL YEAR 2018-19

Themonthlyhigh-lowoftheSharepriceoftheCompany

Monthly/YearNSE BSE

Share Price Share PriceHigh Low Close CNXNiftyClose High Low Close SensexClose

April2018 25.50 21.15 23.45 10739.35 26.25 21.70 23.50 35160.36May2018 24.55 18.20 18.20 10736.15 23.95 18.25 18.70 35322.38June2018 20.35 13.45 15.25 10714.30 20.25 14.65 15.50 35423.48July2018 15.50 12.55 14.05 11356.50 14.60 13.05 14.25 37606.58August2018 23.06 14.00 18.05 11680.50 23.36 14.50 18.53 38645.07September2018 19.35 12.35 12.35 10930.45 18.25 12.35 12.35 36227.14October2018 15.50 11.50 12.00 10386.60 15.50 11.40 12.00 34442.05November2018 15.25 11.55 13.90 10876.75 15.27 11.56 13.85 36194.30December2018 15.75 11.80 15.00 10862.55 16.29 11.70 14.88 36068.33January2019 15.30 11.55 12.05 10830.95 15.98 12.83 12.83 36256.69February2019 13.20 10.15 11.90 10792.50 13.13 10.18 12.74 35867.44March 2019 15.50 11.60 13.00 11623.90 15.74 11.25 13.38 38672.91DistributionofShareholdingasonMarch31,2019

Shareholders ShareAmountShareholdingofNominal

valueNumberof

Shareholder%oftotalholding

Numberofshares

Amountin(Rs.) %tototalshare capital

01to5000 9336 89.74 1291482 12914820 7.675001to10000 545 5.24 454351 4543510 2.6910001 to 20000 243 2.34 371109 3711090 2.2020001to30000 94 0.90 242015 2420150 1.4430001to40000 34 0.33 120646 1206460 0.7240001to50000 39 0.37 184395 1843950 1.0950001to100000 42 0.40 284258 2842580 1.69100001andabove 70 0.68 13886676 138866760 82.50Total 10403 100.00 16834932 168349320 100.00CategoriesofShareholdersasonMarch31,2019

Sl No. Category No.ofSharedHeld %ofshareholding1 Promoters 9108790 54.112 MutualFundandUTI 5410 0.033 Banks,FinancialInstitutions,NBFC,InsuranceCompanies(Central/

StateGovt.Institutions/Non-governmentInstitutions)453027 2.69

4 Bodies Corporate 943649 5.615 IndianPublic 6053894 35.966 NRIs/OCBs/FIIs 230147 1.377 Clearing Member 40015 0.24

TOTAL 16834932 100.00DEMATERIALISATION OF SHARES AND LIQUIDITY

AsonMarch31,2019,thestatusofEquitySharesindematandphysicalformisprovidedhereunder:

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2018-201939

Particulars No.ofShares %tosharecapitalSharesinDematFormheldwithNSDL 13781940 81.86SharesinDematFormheldwithCDSL 1976530 11.74SharesinPhysicalForm 1076462 6.40Total 16834932 100.00Depositories NationalSecuritiesDepositoryLimited(NSDL)

CentralDepositoryServices(India)Limited(CDSL)ISIN INE844A01013

SHARE TRANSFER SYSTEM

Sharessentforphysicaltransferareeffectedwithin15workingdaysoflodgment,providedallthedocumentssubmittedare in order. Pursuant toRegulation40(9)of theSEBI (LODR)Regulations2015, theCompanyobtainsahalf-yearlycertificateoncompliancewithsharetransferprocessfromaPracticingCompanySecretaryandacopyofthesameisfiledwiththeStockExchanges.

OUTSTANDING GDRS/ ADRS/WARRANTS OR ANY CONVERTIBLE INSTRUMENTS, CONVERSION DATE AND LIKELYIMPACT ON EQUITY

TheCompanyhasnotissuedGDRsorADRsorWarrantsoranyConvertibleinstruments.

ADDRESS FOR CORRESPONDENCE DURING THE YEAR WAS AS FOLLOWS:

RegistrarandShareTransferAgent CompanySecretaryMasServicesLimitedT-34,2ndFloor,OkhlaIndustrialArea,Phase-II,NewDelhi-110020PhoneNo:011-26387281-83,FaxNo:011-26387384,E-mail:[email protected]: www.masserv.com

Ms.PriyankaA-97/2,OkhlaIndustrialArea,Phase-II,NewDelhi-110020PhoneNo:011-47385300FaxNo:011-47480746E-mail:[email protected] Website:www.pearlpet.net

Note:However,Ms.PriyankahasresignedfromthepostoftheCompanySecretaryandComplianceOfficeroftheCompanyandtheCompanyhasacceptedherresignationvideitsrelievingletterdated07.06.2019andMr.VineetGuptahasbeenappointedastheCompanySecretaryandComplianceOfficeroftheCompanyw.e.f.10.06.2019.

PLANT LOCATIONS

Sl No. LocationofPlant(s)

Address

1 Mahad B-3/2,M.I.D.C.IndustrialArea,Mahad,Distt.-Raigad,Maharashtra-4023092 Jigani 13-A,Part-I,JiganiIndustrialArea,Distt.Anekal,Bangalore,Karnataka-5621063 Baddi KhasraNo512-513,VillageSandholi,P.O.Baddi,Nalagarh,HimachalPradesh-1732054 PantNagar Plot No 45, Sector-3, Village Kalyanpur, Distt U.S.,Nagar, IIE, Rudrapur, Pant Nagar,

Uttaranchal-2631535 Guwahati PlotNo10,JagatiLogistic,Distt.Kamrup,VillageSindurghopaGuwahati,Assam–781101

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2018-201940

AUDITOR'S CERTIFICATE ON CORPORATE GOVERNANCE

TotheMembersofPearlPolymersLimited,

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyPearlPolymersLimited('theCompany'),forthefinancialyearendedMarch31,2019,asstipulatedunder Regulations17to27andclauses(b)to(i)ofRegulation46(2)andScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015fortheperiodfromApril01,2018toMarch31,2019.ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationwaslimitedtoproceduresandimplementationthereof,adoptedbytheCompanyforensuring thecomplianceof theconditionsofCorporateGovernance. It isneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

Inouropinionandtothebestofourinformation,andaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabove-mentionedRegulations.

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.

DECLARATION ON COMPLIANCE OF THE COMPANY’S CODE OF CONDUCT

Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, I hereby confirm that theCompanyhasobtainedfromalltheMembersoftheBoardandSeniorManagementPersonnel,affirmation(s)thattheyhavecompliedwiththecodeofconductinrespectoffinancialyearendedonMarch31,2019.

For Sehgal Mehta & Co.Chartered Accountants

(FirmRegistrationNo.003330N)

Sd/-NareshKhanna

PartnerMembershipNo.081482

UDIN: 19081482AAAABA1507 Place: New DelhiDate: August14,2019

For and on behalf oftheBoardofDirectors

Sd/-ChandSeth


Place: New DelhiDate: May15,2019

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2018-201941

CEO&CFOCertificate

TotheBoardofDirectorsPearl Polymers Limited

Thisistocertifythat

1. WehavereviewedfinancialstatementsandthecashflowstatementforthefinancialyearendedMarch31,2019andthattothebestofourknowledgeandbeliefwestatethat:

a. these statements do not contain any materially untrue statement or omit any material fact or containstatementsthatmightbemisleading;

b. thesestatementstogetherpresentatrueandfairviewoftheCompany’saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations;

2. Thereare,tothebestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolativeofCompany’scodeofconduct;

3. We accept responsibility for establishing andmaintaining internal controls for financial reporting and thatwehaveevaluatedtheeffectivenessofinternalcontrolsystemsoftheCompanypertainingtofinancialreportingoftheCompanyandhavedisclosedtotheAuditorsandtheAuditCommittee,deficienciesinthedesignoroperationofinternalcontrols,ifany,ofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.

4. WehaveindicatedtotheAuditorsandtheAuditcommittee:

a. Significantchangesininternalcontroloverfinancialreportingduringtheyear,ifany;

b. Significantchangesinaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothefinancialstatements;and

c. Instances of significant fraud of which we have become aware and the involvement therein, if any, of themanagementor anemployeehaving a significant role in theCompany’s internal control systemoverfinancialreporting.

Sd/-ChandSeth


Sd/-DineshKumarTak

ChiefFinancialOfficerPlace: New DelhiDate:May15,2019

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2018-201944

ToTHE MEMBERS OFM/s PEARL POLYMERS LTD.A-97/2,IndustrialArea,Phase-II,Okhla,NewDelhi-110020

Opinion

Wehaveauditedtheaccompanyingfinancialstatementsof M/S PEARL POLYMERS LTD. (“the Company”), which comprise the Balance Sheet as at March 31,2019,theStatementofProfitandLoss(includingOtherComprehensive Income), the Statement of ChangesinEquityandtheStatementofCashFlowsfor theyearended on that date, and a summary of the significantaccounting policies and other explanatory information(hereinafterreferredtoas“thefinancialstatements”).

In our opinion and to the best of our information andaccordingtotheexplanationsgiventous,theaforesaidfinancial statements gives the information required bytheCompaniesAct, 2013 (“theAct”) in themanner sorequired and gives a true and fair view in conformitywith the IndianAccountingStandardsprescribedundersection133oftheActreadwiththeCompanies(IndianAccounting Standards) Rules, 2015, as amended, (“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2019,thelossandtotalcomprehensiveloss,changesinequityand its cashflows for theyearendedon thatdate.

BasisforOpinion

We conducted our audit of the financial statements inaccordance with the Standards on Auditing specifiedundersection143(10)oftheAct(SAs).Ourresponsibilitiesunder those Standards are further described in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report.We are independentof theCompany in accordancewith theCodeof EthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeindependencerequirementsthatarerelevanttoourauditofthefinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeof Ethics.We believe that the audit evidencewe haveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthefinancialstatements.

KeyAuditMatters

Key audit matters are those matters that, in ourprofessional judgment,wereofmostsignificanceinourauditof thefinancial statementsof thecurrentperiod.Thesematterswereaddressedinthecontextofourauditof the financial statements as awhole, and in formingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.

Contingent liabilities and provisions (refer note 39 tothefinancialstatements)

INDEPENDENT AUDITOR’S REPORT

KeyAuditMatter Howthematterwasaddressedinouraudit

TheCompanyoperatesinvariousstateswithinIndia,exposingittoavarietyofdifferentCentralandStatelaws,regulationsandinterpretationsthereof.Inthiscomplexregulatoryenvironment,thereisariskoflitigationsandclaims.

Consequently, provisions and contingent liability disclosuresmay arise from direct and indirect tax proceedings, legalproceedings, including regulatory and other government/departmentproceedings,aswellasinvestigationsbyauthoritiesand commercial claims.

At 31 March 2019, the Company’s contingent liabilities aredisclosedinnote39tothefinancialstatements.

Management applies significant judgement in estimating thelikelihoodofthefutureoutcomeineachcasewhenconsideringwhether, and how much to provide or in determining therequireddisclosureforthepotentialexposureofeachmatter.

Ourauditproceduresoncontingentliabilitiesandprovisionsincludedthefollowing:

• Obtained the outstanding litigations list ascompared to the previous year. Enquiredand obtained explanations for movement inlitigationsduringtheyear.

• Inquiredwithmanagementregardingthestatusof significant litigations and claims includingobtaining legal teams views on the likelyoutcome of each litigation and claim and themagnitudeofpotentialexposure.

• Examined the Company’s legal expenses andreadtheminutesofBoardmeetings,toevaluatethecompletenessoflistoftheopenlitigations.

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2018-201945

KeyAuditMatter Howthematterwasaddressedinouraudit

Thisisduetothehighlycomplexnatureandmagnitudeofthelegal matters involved along with the fact that resolution oftax and legal proceedingsmay span overmultiple years, andmay involveprotractednegotiationor litigation.Managementrecognises a provision when it has a present obligation asa result of part events and it is probable that an outflow ofresources embodying economic benefits will be required tosettleobligation.Acontingent liability is recognised if there isa possible obligation that arises from past events andwhoseexistence will be confirmed only by the occurrence or non-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheentity.

These estimates could change substantially over time as newfacts emerge and as each legal case progresses.

Given the inherent complexity and magnitude of potentialexposuresandthejudgmentnecessarytoestimatetheamountofprovisionsrequiredortodeterminerequireddisclosures,thisisakeyauditmatter.

• Read the latest correspondences between the Companyandtax/legalauthoritiesandreviewedlegalopinionsobtainedbymanagementwhereapplicable,forsignificantmattersandconsideredthe same in evaluating the appropriateness oftheCompany’sprovisionsordisclosuresonsuchmatters.

• With respect to tax matters, we involved taxspecialists to evaluate the significant casesand the technical grounds for Management’s conclusions on provisions or disclosure ofcontingentliabilities.

• For non-tax matters, we evaluatedManagement’s decisions and rationale forprovisions established or disclosuresmade forcontingentliabilities.

Information Other than the Financial Statements andAuditor’sReportThereon

The Company’s Board of Directors is responsible forthe preparation of the other information. The otherinformation comprises the information included inthe Management Discussion and Analysis, Board’sReport including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance andShareholder’s Information, but does not include thefinancialstatementsandourauditor’sreportthereon.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassurance conclusion thereon.

Inconnectionwithourauditofthefinancialstatements,our responsibility is to read theother informationand,in doing so, considerwhether the other information ismaterially inconsistentwith thefinancial statementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformed,weconcludethat there is a material misstatement of this other information,wearerequiredtoreportthatfact.Wehavenothing to report in this regard.

Management’s Responsibility for the FinancialStatements

The Company’s Board of Directors is responsible forthe matters stated in section 134(5) of the Act withrespecttothepreparationofthesefinancialstatementsthat give a true and fair viewof the financial position,financial performance, total comprehensive income,

changes in equity and cash flows of the Company inaccordance with the Ind-AS and other accountingprinciplesgenerallyacceptedinIndia.Thisresponsibilityalso includes maintenance of adequate accountingrecords in accordance with the provisions of the Actfor safeguarding the assets of the Company and forpreventinganddetectingfraudsandotherirregularities;selection and application of appropriate accountingpolicies; making judgments and estimates that arereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement, whether due to fraud or error.

In preparing the financial statements, managementis responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable,matters related to going concern and using the goingconcernbasisof accountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.

TheBoardofDirectorsareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.

Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterial misstatement, whether due to fraud or error,

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2018-201946

and to issue an auditor’s report that includes our opinion. Reasonableassuranceisahighlevelofassurance,butisnot a guarantee that an audit conducted in accordance with SAs will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected toinfluencetheeconomicdecisionsofusers takenonthebasisofthesefinancialstatements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalskepticismthroughouttheaudit.Wealso:

• Identify and assess the risks of materialmisstatementof thefinancialstatements,whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriatetoprovide abasis for ouropinion. The riskof notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error,as fraudmay involvecollusion, forgery, intentionalomissions ,misrepresentations, or the override ofinternal control.

• Obtain an understanding of internal financialcontrols relevant to the audit in order to designaudit 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 internalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suse of the going concernbasis of accounting and,based on the audit evidence obtained, whethera material uncertainty exists related to events orconditions that may cast significant doubt on theCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion. Our conclusions are based on the audit evidenceobtainedup to thedateof our auditor’sreport. However, future events or conditions maycausetheCompanytoceasetocontinueasagoingconcern.

• Evaluate the overall presentation, structure andcontent of the financial statements, including thedisclosures, and whether the financial statementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Materiality is the magnitude of misstatements in thefinancial statements that, individually or in aggregate,makes it probable that the economic decisions ofa reasonably knowledgeable user of the financialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin

(i) planning the scope of our audit work and inevaluating theresultsofourwork;and

(ii) toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.

We communicatewith those chargedwith governanceregarding, among other matters, the planned scopeand timing of the audit and significant audit findings,including any significant deficiencies in internal controlthatweidentifyduringouraudit.

We also provide those charged with governance witha statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and othermattersthatmayreasonablybethoughttobearonourindependence, and where applicable, related safeguards.

Fromthematterscommunicatedwiththosechargedwithgovernance, we determine thosematters that were ofmostsignificanceintheauditofthefinancialstatementsof the current period and are therefore the key auditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinour reportbecause theadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

ReportonOtherLegalandRegulatoryRequirements

AsrequiredbytheCompanies(Auditor’sReport)Order,2016 (“theOrder”), issued by the Central Governmentof India in terms of sub-section (11) of section 143 ofthe Companies Act, 2013, we give in the Annexure astatementonthemattersspecifiedinparagraphs3and4of the Order, to the extent applicable.

AsrequiredbySection143(3)of theAct,basedonourauditwereportthat:

a) We have sought and obtained all the informationandexplanationswhichtothebestofourknowledge

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2018-201947

andbeliefwerenecessary for thepurposesofouraudit.

b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

c) TheBalanceSheet,theStatementofProfitandLossincludingOtherComprehensiveIncome,StatementofChangesinEquityandtheStatementofCashFlowdealtwithbythisReportareinagreementwiththerelevantbooksofaccount.

d) In our opinion, the aforesaid financial statementscomply with the Ind-AS specified under Section133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e) Onthebasisofthewrittenrepresentationsreceivedfrom the directors as on March 31, 2019 takenon record by the Board of Directors, none of thedirectorsisdisqualifiedasonMarch31,2019frombeing appointed as a director in terms of Section164(2)oftheAct.

f) With respect to the adequacy of the internalfinancial controls over financial reporting of the

Company and the operating effectiveness of suchcontrols, refer to our separate Report in “Annexure A”.Ourreportexpressesanunmodifiedopiniononthe adequacy and operating effectiveness of theCompany’sinternalfinancialcontrolsoverfinancialreporting.

g) Withrespecttotheothermatterstobeincludedinthe Auditor’s Report in accordance with Rule 11 of theCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

(i)TheCompanyhasdisclosedtheimpactof pendinglitigationsonitsfinancial positioninits financialstatements(Refer NoteNo.39tothefinancialstatements).

(ii)TheCompanydidnothaveanylong- termcontractsincludingderivativecontractsfor whichtherewereanymaterialforeseeablelosses.

(iii)Therehasbeennodelayintransferringamounts, requiredtobetransferred,totheInvestor EducationandProtectionFundbytheCompany.


For Sehgal Mehta & Co.CharteredAccountants

FRN-003330N

Sd/-(CANareshKhanna)

PartnerM.No. 081482

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2018-201948

(Referred to in paragraph 2(f) under ‘Report on OtherLegalandRegulatoryRequirements’sectionofourreporttotheMembersofPearlPolymersLimitedofevendate)

ReportontheInternalFinancialControlsunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,2013

We have audited the internal financial controls overfinancialreportingofM/sPearlPolymersLimited(“theCompany”)asof31stMarch2019inconjunctionwithourauditofthefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal FinancialControls

TheBoardofDirectorsoftheCompanyisresponsibleforestablishing and maintaining internal financial controlsbased on the internal control over financial reportingcriteria established by the Company considering theessential components of internal control stated in theGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting issuedbythe InstituteofCharteredAccountantsof India. These responsibilities include thedesign, implementation and maintenance of adequateinternalfinancialcontrolsthatwereoperatingeffectivelyfor ensuring the orderly and efficient conduct of itsbusiness, the safeguardingof its assets, thepreventionand detection of frauds and errors, the accuracy andcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’Responsibility

OurresponsibilityistoexpressanopinionontheinternalfinancialcontrolsoverfinancialreportingoftheCompanybased on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControlsOverFinancialReporting(the“GuidanceNote”)issuedbytheInstituteofCharteredAccountantsofIndiaandtheStandardsonAuditingprescribedunderSection143(10) of the Companies Act, 2013, to the extentapplicabletoanauditofinternalfinancialcontrols.ThoseStandardsandtheGuidanceNoterequirethatwecomplywith ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidence about the adequacy of the internal financialcontrols system over financial reporting and theiroperating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining anunderstandingofinternalfinancialcontrolsoverfinancialreporting, assessing the risk that a material weaknessexists, and testing and evaluating the design andoperatingeffectivenessof internalcontrolbasedontheassessed risk. The procedures selected depend on theauditor’sjudgment,includingtheassessmentoftherisksof material misstatement of the financial statements,whether due to fraud or error.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion on the Company’s internal financial controlssystemoverfinancialreporting.

Meaning of Internal Financial Controls over FinancialReporting

A company’s internal financial control over financialreporting is a process designed to provide reasonableassuranceregardingthereliabilityoffinancial reportingandthepreparationoffinancialstatementsforexternalpurposes in accordance with generally acceptedaccounting principles. A company’s internal financialcontrol over financial reporting includes those policiesand procedures that

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of thecompany;

2) provide reasonable assurance that transactionsarerecordedasnecessarytopermitpreparationoffinancial statements in accordance with generallyaccepted accounting principles, and that receiptsand expenditures of the company are beingmade only in accordance with authorizations ofmanagementanddirectorsofthecompany;and

3) providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,or disposition of the company’s assets that couldhaveamaterialeffectonthefinancialstatements.

Annexure-AtotheAuditors’Report

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2018-201949

InherentLimitationsofInternalFinancialControlsOverFinancialReporting

Becauseof the inherent limitationsof internalfinancialcontrolsoverfinancialreporting,includingthepossibilityof collusion or improper management override ofcontrols, material misstatements due to error or fraud mayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreporting to future periods are subject to the risk thattheinternalfinancialcontroloverfinancialreportingmaybecome inadequate because of changes in conditions,or that the degree of compliance with the policies or proceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,an adequate internal financial controls system overfinancial reporting and such internal financial controlsover financial reporting were operating effectively asat 31March 2019, based on the internal control overfinancial reporting criteria established by the CompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.


FRN-003330N


PartnerM.No. 081482

Place: New DelhiDate: 15.05.2019

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The Annexure referred to in Independent Auditors’ReporttothemembersoftheCompanyonthefinancialstatements for the year ended 31 March 2019, wereport that:

i) (a) The Company hasmaintained proper records showingfullparticulars, includingquantitative detailsandsituationoffixedassets.

(b) TheCompanyhasaprogramofverificationoffixedassetstocoveralltheitemsinaphasedmanneroveraperiodofthreeyearswhich,inouropinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Pursuant to the program, certain fixed assetswerephysicallybythemanagementduringtheyear.Accordingtotheinformationexplanationsgiven to us no material discrepancies werenoticedonsuchverification.

(c) Accordingtotheinformationandexplanationsgiven to us, the records examined by us andbased on the examination of the conveyancedeedsprovidedtous,wereportthat,thetitledeeds,comprisingalltheimmovablepropertiesof land and buildings which are freehold, are held in the name of the Company as at thebalance sheet date. In respect of immovablepropertiesoflandandbuildingthathavebeentakenonleaseanddisclosedasfixedassetsinthefinancialstatements,theleaseagreementsareinthenameoftheCompany.

ii) (a) Asexplainedtous, the inventorieshavebeen physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Companyandthenatureofitsbusiness.

(b) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theproceduresofphysicalverificationofinventoriesfollowedbythe management are reasonable and adequate in relation to the size of the Company andnature of the business.

(c) Inouropinionandaccordingtotheinformationand explanations given to us, the companyhasmaintainedproperrecordsof inventories.As explained to us, there were no material discrepancies noticed on physical verificationoftheinventorieshavingregardtothesizeoftheoperationsofthecompany.

iii) As explained to us, the company had not grantedanyloans,securedorunsecured,toanycompanies,firms,LimitedLiabilityPartnershipsorotherpartiescovered in the register maintained under section189oftheAct.

iv) Thecompanyhasnotgrantedany loan,madeanyinvestments, provided any guarantee and securitywithin themeaningof section185and186of theCompaniesAct,2013.

v) In our opinion and according to the informationandexplanationsgiventous,theCompanyhasnotacceptedanydepositsincontraventionofDirectivesissuedbyReserveBankofIndiaandtheprovisionsofsection73to76oranyotherrelevantprovisionsof the Act and the rules framed there under, where applicable. No order has been passed bytheCompanyLawBoardorNationalCompanyLawTribunalorReserveBankofIndiaoranycourtoranyother tribunal.

vi) Asexplainedtous,TheCentralGovernmenthasnotprescribed the maintenance of cost records under section 148(1) of the Act, for any of the activitiessuch as engaged in the production of goods orprovidingservicesbytheCompany.

vii) (a) According to the records of the company the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees’ state insurance, income tax, sales tax,wealth tax, service tax, custom duty, excise duty, Cess and other materialstatutoryduesapplicabletoit.

Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofincometax,wealthtax,ServiceTax,sales tax, custom duty, excise duty and Cesswere in arrears, as at 31st March, 2019 for a period of more than six months from the date theybecamepayable.

(b) Accordingtotheinformationandexplanationsgiven to us, the dues of sales tax, incometax, excise duty and Cess that have not beendeposited with appropriate authorities onaccount of any dispute and the forumwherethedisputesarependingaregivenbelow:-

Annexure-BtotheAuditors’Report

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2018-201951

NameoftheStatute

NatureoftheDues Amount(`In’Lakhs)

Periodtowhichtheamountrelates

Forumwherethedisputeispending

The Central Excise Act,1944

Producing and clearing dutiable andnon-dutiable product under NotificationNo.4/97

360.59 March 1997 to June 1997

SupremeCourtofIndia


Interestondifferentialdutypaidinrespectofsupplementaryinvoices

0.4 January2001toApril2003

CESTAT


Disallowance of Cenvat Credit on thesupplyofpetchips

7.19 July2004toAugust2004

Commissioner of Customs & Central Excise (Appeals), MumbaiIII


Remission of Duty of Rs.7,22,122/- fordamage of Finished Goods in Fire was rejectedbythedepartment.

7.22 2014-2015 Assistant Commissioner of Central Excise Mumbai

The Sales Tax Act Sales tax assessment CST & VAT demand 19.21 2009-2010 Commissioner of Sales Tax, Rudrapur

The Sales Tax Act Sales tax assessment CST & VAT demand 5.47 2010-2011 Commissioner of Sales Tax, Rudrapur


Order passed for reversal of CENVATCREDIT taken on Capital Goods on05.07.2017 and appeal filled with 5%securitydepositamount.

2.83 April15toMay16 Commissioner of Central Excise (Appeals), Chandigarh

402.92

viii) Accordingtotheinformationandexplanationsgivento us, and the records of the companies examined byus,theCompanyhasnotdefaultedinrepaymentofloansorborrowingstoafinancialinstitutionandbanks.

ix) TheCompanyhas‘notraisedanymoneybywayofinitialpublicofferorfurtherpublicofferOrderisnotapplicable.

x) Based upon our audit procedures performed and accordingtotheinformationandexplanationsgiventous,nomaterialfraudbytheCompanyorontheCompany by its officers or employees has beennoticedorreportedduringthecourseofouraudit.

xi) Accordingtotheinformationandexplanationsgivetousandbasedonourexaminationoftherecordsof the Company, the Company has paid/providedformanagerialremunerationinaccordancewiththerequisite approvalsmandatedby theprovisionsofsection197readwithScheduleVtotheAct.

xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnotaNidhicompany.Accordingly,paragraph3(xii)oftheOrderis not applicable.

xiii) Accordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsof the Company, transactions with the relatedparties are in compliance with sections 177 and188oftheActwhereapplicableanddetailsofsuchtransactions have been disclosed in the financialstatementsasrequiredbytheapplicableaccountingstandards.

xiv) Accordingtotheinformationandexplanationsgivetousandbasedonourexaminationoftherecordsof the Company, the Company has notmade anypreferential allotment or private placement ofshares or fully or partly convertible debenturesduringtheyear.

xv) AccordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsoftheCompany,theCompanyhasnotenteredintonon-cash transactions with directors or personsconnected with him.

xvi) TheCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct1934.



FRN-003330N


PartnerM.No. 081482

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2018-201952

PARTICULARS NoteNo.

As at 31st March 2019(Rs.inlakhs)

As at 31st March 2018(Rs.inlakhs)

1 2 3 4 I ASSETS1 Non-current assets

(a) Property,Plant&Equipment 2 4,929.20 5,431.68(b) Capitalwork-in-progress 3 - 10.80(c) InvestmentProperty 4 25.37 25.88(d) OtherIntangibleAssets 5 23.23 10.66 (e) Financial Assets

(i)Investments 6 208.30 208.30(ii)Loans 7 249.74 266.54

(f) Other Non-Current Assets 8 29.38 78.08SubtotalNonCurrentAssets 5,465.22 6,031.94

2 Current assets(a) Inventory 9 2,243.62 2,217.62 (b) Financial Assets

(i)Investments 10 2.71 6.29 (ii)TradeReceivables 11 4,351.15 4,781.10(iii)CashandCashEquivalents 12 238.01 337.65(iv)Loans 13 25.53 12.00 (v)OtherFinancialAssets 14 15.29 16.10

(c) Current Tax Assets (Net) 15 27.96 21.64(d) Other Current Assets 16 248.45 263.85

SubtotalCurrentAssets 7,152.72 7,656.25TOTAL ASSETS 12,617.94 13,688.19

II EQUITY AND LIABILITIES1 Equity

(a) EquityShareCapital 17 1,682.68 1,682.68(b) OtherEquity 18 2,858.53 3,346.29

SubTotalEquity 4,541.21 5,028.972 Non-current liabilities

(a) FinancialLiability(i) Borrowings 19 538.29 658.98

(b) Provisions 20 341.98 339.20(c) DefferedTaxLiability(Net) 21 131.90 276.80(d) OtherNonCurrentLiabilities 22 112.71 170.08

SubtotalNonCurrentLiability 1,124.88 1,445.063 Current liabilities

(a) FinancialLiability(i) Borrowings 23 2,124.14 2,303.07(ii)TradePayables 24 4,166.53 4,290.11(iii)OtherFinancialLiabilities 25 180.07 184.36

(b) OtherCurrentLiabilities 26 457.82 413.59(c) Provisions 27 23.29 23.03

SubtotalCurrentLiability 6,951.85 7,214.16TOTAL EQUITY AND LIABILITY 12,617.94 13,688.19

BALANCE SHEET AS AT 31st MARCH 2019

Forandonbehalfoftheboardofdirectors

Sd/-DINESH KUMAR TAKChiefFinancialOfficer

M.No.403873

Sd/-CHAND SETH

Chairman&ManagingDirectorDIN-00002944

Sd/-VARUN SETH

Whole Time DirectorDIN-00017552

Sd/-PRIYANKA

CompanySecretaryM.No.36870

For Sehgal Mehta & Co.CharteredAccountantsF.R.N: 003330N

Sd/-NareshKhannaPartnerM.No 081482

Place: New DelhiDate : 15thMay,2019

SignificantAccountingPolicies 1TheaccompayingnotesareanintegralpartofthefinancialstatementsAsperourreportofevendate 2-54

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2018-201953

STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED 31st MARCH 2019



M.No.403873

Sd/-CHAND SETH


Sd/-VARUN SETH


Sd/-PRIYANKA





PARTICULARS NoteNo.

Fortheyearended31.03.19(Rs.inlakhs)

Fortheyearended31.03.18(Rs.inlakhs)

1 2 3 41 RevenuefromOperations 28 17,871.51 18,100.942 OtherIncome 29 220.71 178.733 TotalIncome(1+2) 18,092.22 18,279.674 Expenses

(i) Cost of Materials Sold/Consumed 30 11,052.97 9,850.45(ii)Purchaseofstockintrade 31 153.47 858.15(iii)Changesininventoriesoffinishedgoods,Stock-in-Tradeandwork-in-progress

32 (10.96) 270.91

(iv)EmployeesBenefitsExpnese 33 1,783.99 1,901.42(v)FinanceCosts 34 494.64 457.40(vi)DepreciationandAmortizationExpense 35 629.43 589.64(vii)OtherExpenses 36 4,620.02 4,788.89TotalExpenses(4) 18,723.56 18,716.86

5 Profit/(loss)beforeexceptionalitemsandtax(3-4) (631.34) (437.19)6 ExceptionalItems - - 7 Profit/(loss)beforetax(5-6) (631.34) (437.19)8 TaxExpenses:

(i) Current Tax - - (ii) Deferred Tax (144.90) (174.04)(iii)Taxadjustmentforearlieryear - -

9 Profit(Loss)fortheperiodfromcontinuingoperations(7-8) (486.44) (263.15)10 Profit/(loss)fromdiscontinuedoperations - - 11 Taxexpenseofdiscontinuedoperations - - 12 Profit/(loss)fromDiscontinuedoperations(aftertax)(10-11) - - 13 Profit/(loss)fortheperiod(9+12) (486.44) (263.15)14 OtherComprehensiveIncome (1.32) 42.03

A(i)Itemsthatwillnotbereclassifiedtoprofitorloss (1.32) 42.03(ii)Incometaxrelatingtoitemsthatwillnotbereclassifiedtoprofitor loss

- -

B(i)Itemsthatwillbereclassifiedtoprofitorloss - - (ii)Incometaxrelatingtoitemsthatwillbereclassifiedtoprofitorloss - -

15 TotalComprehensiveIncomefortheperiod(13+14)(ComprisingProfit(Loss)andOtherComprehensiveIncomefortheperiod)

(487.76) (221.12)

16 Earningsperequityshare(forcontinuingoperation):(i) Basic (2.89) (1.56)(ii) Diluted (2.89) (1.56)

17 Earningsperequityshare(fordiscontinuedoperation):(i) Basic 0.00 0.00(ii) Diluted 0.00 0.00

18 Earningsperequityshare(fordiscontinued&continuingoperation): 37(i) Basic (2.89) (1.56)(ii) Diluted (2.89) (1.56)

SignificantAccountingPolicies 1TheaccompayingnotesareanintegralpartofthefinancialstatementsAsperourreportofevendate 2-54

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2018-201954

FortheyearEndedMarch31,2019(Rs.inlakhs)

FortheyearEndedMarch31,2018(Rs.inlakhs)

A. Cashflowfromoperatingactivities:Netprofit/(loss)beforetax (631.34) (437.19)Adjustmentsfor:Depreciation/Amortisation 629.42 589.64InterestExpense 494.64 457.40InterestIncome (29.89) (32.08)ActuarialGainroutedthroughOCI (1.32) 42.03(Profit)/lossonsaleofassets (69.91) (7.59)(Profit)/lossonrevaluationofInvestments 3.58 (1.94)Operatingprofitbeforeworkingcapitalchanges 395.18 610.27 Adjustmentsforchangesinworkingcapital:-(Increase)/DecreaseinSundryDebtors 429.95 (469.31)-(Increase)/DecreaseinOtherReceivables 86.99 (150.14)-(Increase)/DecreaseinInventories (26.00) 65.55-Increase/(Decrease)inTradeandOtherPayables (137.46) 1101.25Cashgeneratedfromoperations -.66 1157.61-Taxes(Paid)/Received (6.32) (4.28)Netcashfromoperatingactivities(a) 742.34 1153.33

B. CashflowfromInvestingactivities:PurchaseoffixedassetsAdditionsduringtheperiod (210.75) (850.64)ProceedsfromSaleoffixedassets 152.47 9.32InterestReceived(Revenue) 30.95 40.73Netcashusedininvestingactivities(b) (27.33) (800.59)

C. Cashflowfromfinancingactivities:Proceedsfromlongtermborrowings(Net) (222.35) (13.07)ProceedsfromShortTermBorrowing (77.97) 128.52InterestPaid (494.46) (457.09)Netcashusedinfinancingactivities(c) (794.78) (341.64)NetIncrease/(Decrease)inCash&CashEquivalents(a+b+c)

(79.77) 11.10

Cashandcashequivalentsasat01.04.2018 124.52 113.42Cashandcashequivalentsasat31.03.2019 44.75 124.52CashandcashequivalentscompriseCash in hand 7.63 10.23BalancewithScheduledBanks 37.12 114.29

44.75 124.52

CASHFLOWSTATEMENTFORTHEYEARENDEDMarch31,2019

Notes : 1 TheaboveCashflowstatementhasbeenpreparedundertheindirectmethodsetoutinIndAS-7notifiedunderSection133ofthe

CompaniesAct,2013readwithRule7oftheCompanies(Accounts)Rules,2014.2 Figuresinbracketsindicatecashoutgo.3 Previousyear’sfigureshavebeenregrouped/reclassifiedwherevernecessarytocorrespondwiththecurrentyear’sclassification

/ disclosure. ThisistheCashFlowStatementreferredtoinourreportofevendate



M.No.403873

Sd/-CHAND SETH


Sd/-VARUN SETH


Sd/-PRIYANKA



Sd/-NareshKhannaPartnerM.No 081482Place:NewDelhiDate:15thMay,2019

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2018-201955

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2018-201956

1. COMPANY OVERVIEW

Pearl Polymers Limited is a listed companyincorporated and domiciled in India and has itsprincipalplaceofbusinessatA-97/2,OkhlaIndustrialArea, Phase-II, New Delhi-110020.The Company islistedonBombayStockExchange(BSE)andNationalStockExchange(NSE).Theprincipalbusinessofthecompany ismanufacturing and tradingof PET JarsandBottles.Thefinancialstatementsareapprovedfor issue by the company's board of directors onMay15,2019.

2. SIGNIFICANT ACCOUNTING POLICIES

I. Basisofpreparationandpresentationoffinancialstatements

A. Basisofpreparationoffinancialstatements

Thesefinancialstatementshavebeenpreparedand presented on a going concern basis under the historical cost convention (except thoserevalued), on the accrual basis of accountingand comply with the Indian AccountingStandards prescribed by Section 133 of theCompanies Act, 2013 (‘the Act’) read withRule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Instituteof Chartered Accountants of India, guidelinesissued by Securities and exchange board ofIndia(SEBI)andtherelevantprovisionsoftheCompaniesAct,2013/CompaniesAct,1956,asadoptedconsistentlybytheCompany.

B. StatementofcompliancewithInd-As

The financial statements have been preparedin accordancewith IndAS notified under theCompanies (Indian Accounting Standards)Rules, 2015 as amended and notified underSection133oftheCompaniesAct,2013(“theAct”) and other relevant provisions of theAct and other accounting principles generallyacceptedinIndia.

C. BasisofMeasurement

The financial statements have been preparedon a historical cost convention and on anaccrual basis except for the defined benefitand other long-term employee benefitsobligations and Investmentsmeasured at fairvalue through profit and loss (FVTPL)/ fairvalue through other comprehensive income(FVTOCI)thathavebeenmeasuredatfairvalue

asrequiredbyrelevantInd-AS.

D. UseofEstimatesandJudgments.

The preparation of financial statements inconformitywith Ind-AS requiresmanagementtomakejudgments,estimatesandassumptionsthat affect the application of accountingpolicies and the reported amounts of assets, liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Estimates and underlying assumptions arereviewed on a periodic basis. Revisionsto accounting estimates are recognizedin the period in which the estimates arerevised and in any future periods affected.In particular, information about significantareas of estimation, uncertainty and criticaljudgments in applying accounting policiesthat have the most significant effect on theamountsrecognizedinthestandalonefinancialstatementsisincludedinthefollowingnotes:

i. Income Taxes: The Company’s taxjurisdiction is India. Significantmanagement judgment is required todetermine the amount of deferred tax assetsthatcanberecognized,baseduponthe likely timing and the level of futuretaxable profits together with future taxplanning strategies.

ii. Provisions and Contingencies: The assessments undertaken in recognizingthe provisions and contingencies havebeen made in accordance with Ind-AS37, ‘Provisions,ContingentLiabilitiesandAssets’.Theevaluationofthelikelihoodofthe contingent events has required bestjudgment bymanagement regarding theprobability of exposure topotential loss.Should circumstances change following unforeseeable developments, thislikelihoodcouldafter.

iii. Post-Employmentbenefitplan:Employeebenefits obligations are measured onthebasisof actuarial assumptionswhichinclude mortality and withdrawal ratesaswellasassumptionsconcerningfuturedevelopmentsindiscountrates,therateofsalaryincreaseandtheinflationrate.Thecompanyconsiders that theassumptions

NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED31stMARCH,2019

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2018-201957

used to measure its obligations areappropriate and documented. However,any changes in these assumptions mayhave a material impact on the resultingcalculations.

iv. Other estimates: The preparation ofstandalone financial statements involvesestimates and assumptions that affectthereportedamountofassets,liabilities,disclosure of contingent liabilities at thedate of standalone financial statementsand the reported amount of revenuesand expenses for the reporting period.Specifically, the Company estimates theprobability of collection of accountsreceivablebyanalysinghistoricalpaymentpatternsetc.

E. FunctionalandPresentationCurrency

Items included in the standalone financialstatements of the company are measuredusingIndianRupee(Rs.)whichisthefunctionalcurrencyof thecompanyand thecurrencyofthe primary economic environment in whichtheentityoperates.Thepresentationcurrencyof the company is also Indian Rupee (Rs.)(roundedofftoRs.lakhsuptotwodecimals)

II. Summaryofsignificantaccountingpolicies

A. FinancialInstruments

i. FinancialAssets

Financialassetscompriseinvestmentsinequityand debt instruments,mutual funds, securitydeposits, inter-corporate deposits, trade receivables, Cash and cash equivalents andother eligible assets.

Initialrecognitionandmeasurement

All financial assets are recognized initially at fair value.Transactioncoststhatareattributabletotheacquisitionof the financial asset (other than financial assetsrecordedatfairvaluethroughprofitorloss)areincludedinthefairvalueofthefinancialassets.Purchaseorsaleoffinancialassetsthatrequiredeliveryofassetswithinatimeframeestablishedbyregulationorconventioninthemarketplace(regularwaytrades)arerecognizedonthetradedate, i.e., thedatethat theCompanycommits topurchase or sell the asset.

SubsequentMeasurement

Financial Assets measured at amortized cost: Financialassetsheldwithinabusinessmodelwhoseobjective is

to hold financial assets in order to collect contractualcash flows and the contractual terms of the financialasset give rise on specified dates to cash flows thatare solely payment of principal and interest (SPPI) onprincipalamountoutstandingaremeasuredatamortizedcostusingeffectiveinterestrate(EIR)method.Theyarepresented as current assets, except for those maturing laterthan12monthsafterthereportingdatewhicharepresented as non-current assets. Thesefinancial assetsare subsequently carried at amortized cost using theeffective interest method, less any impairment loss.TheEIRamortizationisrecognizedasfinanceincomeinthe Statement of Profit and Loss. Assets at amortizedcostare representedby inter corporatedeposits, tradereceivables,securitydeposits,cashandcashequivalentsand other eligible current and noncurrent financialassets.

Financial assets at fair value through othercomprehensive income (FVTOCI): Financial assets held within a business model whose objectiveis achieved by both collecting the contractualcashflowsand selling thefinancial assets and thecontractual terms of the financial assets give riseon specified dates to cash flows that are solelypayment towards principal and interest (SPPI) onprincipal outstanding are subsequently measuredatFVTOCI.Fairvaluemovementsinfinancialassetsat FVTOCI are recognized in other comprehensiveincome.However,theCompanyrecognizesinterestincome, impairment losses&reversalsandforeignexchangegain loss in statementofprofitand loss.On de-recognition of the asset, cumulative gainor loss previously recognized in OCI is reclassifiedfrom equity to profit and loss. Interest earned isrecognized under the expected interest rate (EIR)model.

Equity instruments other than investment inassociates: The management determines at the initial recognition of investments in Equityinstruments whether to measure it at FVTPL orFVTOCI. However, the equity instruments heldfor trading are always classified at fair valuethrough Profit or Loss (FVTPL). The classificationof investments at FVTOCI is irrevocable. Fair valuechangesonequityinstrumentsatFVTOCI,excludingdividends, are recognized in other comprehensiveincome(OCI).

FinancialassetsatfairvaluethroughProfitorLoss(FVTPL): Financial assets are measured at FVTPLif itdoesnotmeet thecriteria forclassificationasmeasuredatamortizedcostoratfairvaluethrough

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2018-201958

other comprehensive income. Fair value changesarerecognizedinStatementofProfitandLoss.

De-recognitionoffinancialassets

Financialassetsarederecognizedwhen thecontractualrightstothecashflowsfromthefinancialassetsexpireorthefinancialassetistransferredandthetransferqualifiedforde-recognition.Onde-recognitionoffinancialassetinitsentiretythedifferencebetweenthecarryingamount(measured at the date of de-recognition) and theconsiderationreceived(includinganynewassetobtainedless any new liability assumed) shall be recognized inStatementofProfitandLoss.

Impairmentoffinancialassets

Tradereceivables,contractassets,receivablesunderInd-AS109,investmentsindebtinstrumentsthatarecarriedatamortizedcost,investmentsindebtinstrumentsthatare carried at FVTOCI are tested for impairment basedon the expected credit losses (ECL) for the respectivefinancial asset. ECL impairment loss allowance (orreversal) recognized during the period is recognized asincome/expenseintheStatementofProfitandLoss.Theapproach followedby the company for recognizing theimpairmentlossisgivenbelow:

Tradereceivables

An impairment analysis is performed at eachreporting date. The expected credit losses overlifetime of the asset are estimated by adoptingthe simplified approach using a provision matrixwhich is based on historical loss rates reflectingcurrentconditionandforecastsoffutureeconomicconditions. The company estimates the followingprovisionmatrixatthereportingdate:

Periodpastdue Default rate0to1year 0%2to2year 0%Morethan2years 10%Morethan3years 100%Doubtfulreceivables 100% Otherfinancialassets

Forrecognitionofimpairmentlossonotherfinancialassetsandriskexposure,theCompanydeterminesthatwhethertherehasbeenasignificantincreaseinthecreditrisksinceinitialrecognition.Ifcreditriskhasnotincreasedsignificantly,12-monthECLisusedtoprovideforimpairmentloss.However,ifcreditriskhasincreasedsignificantly,lifetimeECLissued.Ifinsubsequentperiod,creditqualityoftheinstrumentimprovessuch that there isno longera significantincreaseincreditrisksinceinitialrecognition,then

the entity reverts to recognizing impairment lossallowancebasedon12monthECL.

ii. Financialliabilities

Financial liabilities comprise trade payables andothereligibleliabilities.

Initialrecognitionandmeasurement

Financial liabilities are initially recognized at fair value.Any transaction costs that are attributable to theacquisition of the financial liabilities (except financialliabilitiesatfairvaluethroughprofitorloss)aredeductedfromthefairvalueoffinancialliabilities.

Subsequentmeasurement

Financialliabilitiesatamortizedcost:TheCompanyhasclassifiedthefollowingunderamortizedcost:

a) Tradepayables

b) Othereligiblefinancialliabilities

Amortized cost for financial liabilities representsamountatwhichfinancial liability ismeasuredat initialrecognition minus the cumulative amortization usingtheeffectiveinterestrate(EIR)methodofanydifferencebetweenthatinitialamountandthematurityamount.

Financial liabilities at fair value through profitor loss (FVTPL): Financial liabilities at fair valuethroughprofitorlossincludefinancialliabilitiesheldfortradingandfinancial liabilitiesdesignateduponinitial recognition as at fair value through profitor loss. Financial liabilities are classified as heldfor trading if they are incurred for thepurposeofrepurchasing in the near term.

Financialliabilitiesdesignateduponinitialrecognitionatfairvaluethroughprofitsorlossesaredesignatedassuchattheinitialdateofrecognition,andonlyifthecriteriain Ind-AS 109 are satisfied. For liabilities designated asFVTPL,fairvaluegains/lossesattributabletochangesinowncreditrisksarerecognizedinOCI.Thesegains/lossarenot subsequently transferred to P&L.However, thecompanymaytransferthecumulativegainorlosswithinequity. All other changes in fair value of such liabilityare recognized in the statement of profit or loss. Thecompanyhasnotdesignatedanyfinancial liabilityasatfairvaluethroughprofitandloss.

De-recognitionoffinancialliabilities

Afinancialliabilityshallbede-recognizedwhen,andonlywhen,itisextinguishedi.e.whentheobligationspecifiedin the contract is discharged or cancelled or expires.

iii. Off-setting of financial assets and financialliabilities:

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2018-201959

Financialassetsandliabilitiesareoffsetandthenetamount is presented in the balance sheet when, and only when, the Company has a legal enforceablerighttooffsettherecognizedamountsandintendseithertosettleonanetbasisortorealizetheassetsandsettletheliabilitysimultaneously.

iv. Reclassificationoffinancialassets

The Company determines the classification offinancialassetsandliabilitiesoninitialrecognition.After initialrecognition,noreclassificationismadeforfinancialassetswhicharecategorizedasequityinstruments at FVTOCI and financial assets orfinancial liabilities that are specifically designatedat FVTPL. For financial assets, which are debtinstruments,areclassificationismadeonlyifthereisa change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The management determines change in the business model as a result of external or internal changes which are significant to theCompany’s operations. A change in the businessmodeloccurswhen theCompanyeitherbeginsorceases to perform an activity that is significant toitsoperations. If thecompany reclassifiesfinancialassets, it applies the reclassification prospectivelyfromthereclassificationdatewhichisthefirstdayof immediately next reporting period followingthe change inbusinessmodel. TheCompanydoesnot restateanypreviously recognizedgains, losses(including impairment gains or losses) or interest.

B. Inventories

Raw materials and stores, work in progress, traded and finished goods.

Rawmaterialsandstores,workinprogress,tradedandfinishedgoodsare statedat the lowerof costandnetrealisablevalue.Costofrawmaterialsandtraded goods comprises cost of purchases. Cost of work-in-progress and finished goods comprisesdirect materials, direct labour and an appropriate proportion of variable and fixed overheadexpenditure,thelatterbeingallocatedonthebasisof normal operating capacity. Cost of inventoriesalso include all other costs incurred in bringing the inventoriestotheirpresentlocationandcondition.Costsareassignedtoindividualitemsofinventoryonthebasisoffirst-infirst-outbasis.Costsofpurchasedinventory are determined after deducting rebatesand discounts.

C. Property,PlantandEquipment

Property, Plant and Equipment is carried at cost

less accumulated depreciation and accumulatedimpairment losses. The cost comprises its purchase price, including import duties and othernon-refundable taxes or levies and any directlyattributablecostofbringingtheassettoitsworkingconditionfor its intendeduse;anytradediscountsandrebatesaredeductedinarrivingatthepurchaseprice. Cost of self-constructed asset include the costofmaterial,direct labourandanyothercostsdirectly attributable to bringing the asset to itsworkingconditionforitsintendeduse,andthecostsofdismantlingandremovingtheitemsandrestoringthe site on which they are located. Purchasedsoftware that is integral to the functionality ofthe relatedequipment iscapitalizedaspartof theequipment.

GainsandlossesondisposalofanitemofProperty,PlantandEquipmentaredeterminedbycomparingthe proceeds from disposal with the carryingamount of Property, Plant and Equipment andare recognized net within “Other income/ Otherexpenses”intheStatementofProfitandLoss.

Thecostofproperty,plantandequipmentnotreadyfor intended use before such date are disclosed undercapitalwork-in-progress.

Subsequentcosts

Thecostof replacingpartofan itemofProperty,Plantandequipment is recognized in thecarryingamountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthepartwillflowtotheCompanyanditscostcanbemeasuredreliably.Thecarryingamountofthereplacedpartisde-recognized.Thecostsoftheday-to-day servicing of property, plant and equipment arerecognizedintheStatementofProfitandLoss.

Depreciation

Depreciationonproperty,plant&equipmentisprovidedon pro-rata to the period of use, on the Straight LineMethod ratesworked out based on the useful life andin the manner prescribed in the Schedule II to theCompaniesAct,2013.

Theestimateduseful livesofassetsforthecurrentandcomparativeperiodofsignificantitemsofproperty,plantandequipmentareasfollows:

Category Usefullife(Years)Buildings 60Furniture & Fixture 10Plant&Machinery 15ElectricalInstallation 10OfficeEquipments 5

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Computer 3Vehicles 8

ThecompanyfollowscomponentapproachasenvisagedinScheduleIItotheCompaniesAct,2013.Theapproachinvolvesidentificationofcomponentsoftheassetwhosecost is significant to the total costof theassetandhasusefullifedifferentfromtheusefullifeoftheremainingassets and in respect of such identified components,useful life isdeterminedseparately fromtheuseful lifeof the main asset.

Assets acquired under finance lease and leaseholdimprovementsareamortizedoverthelowerofestimateduseful life and lease term.

Depreciationonadditionsisprovidedonapro-ratabasisfromthemonthofacquisition/installation.Depreciationonsale/deduction fromproperty,plant&equipment isprovided for up to the date of sale/adjustment, as thecasemaybe.

Modificationorextension toanexistingasset,which isof capital nature and which becomes an integral part thereof isdepreciatedprospectivelyovertheremaininguseful life of that asset.

Thedepreciationmethod,usefullivesandresidualvaluearereviewedateachofthereportingdate.

D. Intangibleassets

Intangible asset are carried at cost of acquisitionlessamortization.Thecostofanitemofintangibleassets comprises its purchase price, including import dutiesandothernon-refundabletaxesorleviesandanydirectlyattributablecostofbringingtheassettoitsworkingconditionforitsintendeduse;anytradediscounts and rebates are deducted in arriving atthe purchase price.

AmortizationofIntangibleassets

Intangibleassetsareamortizedonstraight linemethodonpro-ratabasisoveraperiodofthreeyears.

E. Investmentproperty

Investmentpropertiesaremeasuredinitiallyatcost,including transaction costs. Subsequent to initialrecognition,investmentpropertiesarestatedatcostless accumulated depreciation and accumulatedimpairmentloss,ifany.

The cost includes the cost of replacing parts and borrowingcostsforlong-termconstructionprojectsiftherecognitioncriteriaaremet.

When significant parts of the investment propertyare required to be replaced at intervals, the Company

depreciates them separately based on their specificuseful lives.Allother repairandmaintenancecostsarerecognizedinprofitorlossasincurred.

The Company depreciates building component ofinvestment property over 60 years from the date oforiginalpurchaseaspertherequirementofSchedule IIof theCompaniesAct, 2013. The leasehold investmentpropertiesareamortizedoverthetermofthelease.

Though the Company measures investment propertyusing cost based measurement, the fair value ofinvestment property is disclosed in the notes. Fairvalues are determined based on an annual evaluationperformedbyanaccreditedexternalindependentvaluer.

Investment properties are de-recognized either whentheyhavebeendisposedoforwhentheyarepermanentlywithdrawn fromuseandno futureeconomicbenefit isexpected from their disposal. The difference betweenthenetdisposalproceedsandthecarryingamountoftheasset is recognized inprofitor loss in theperiodofde-recognition.

F. Investmentsinsubsidiariesandassociates

Investment in subsidiaries and associates isrecognizedatcostlessimpairment.Dividendincomefromsubsidiariesandassociatesisrecognizedwhenitsrighttoreceivethedividendisestablished.

G. Foreigncurrencytransactionsandbalances

Transactions in foreign currencies are initiallyrecognized in the standalone financial statementsusing exchange rates prevailing on the dateof transaction. Monetary assets and liabilitiesdenominated in foreign currencies are translated totherelevantfunctionalcurrencyattheexchangerates prevailing at the reporting date. Non-monetary assets and liabilities denominated inforeign currencies that aremeasured at fair valueare retranslated to the functional currency at theexchange rate prevailing on the date that the fairvaluewas determined. Non-monetary assets andliabilities denominated in a foreign currency andmeasured at historical cost are translated at the exchangerateprevalentatthedateoftransaction.Foreign currency differences arising on translationarerecognized in theStatementofProfitandLossfor determination of net profit or loss during theperiod.

H. Borrowingcosts

Borrowing costs that are directly attributable tothe acquisition, construction or production of a

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qualifyingassetarecapitalizedaspartofthecostofthatasset.Otherborrowingcostsarerecognizedasexpenses intheperiod inwhichtheyare incurred.TotheextenttheCompanyborrowsfundsgenerallyand uses them for the purpose of obtaining a qualifying asset, the Company determines theamountofborrowingscostseligibleforcapitalizationbyapplyingacapitalizationratetotheexpenditureincurred on such asset. The capitalization rate isdetermined based on the weighted average ofborrowing costs applicable to the borrowings of the Companywhichareoutstandingduringtheperiod,other than borrowings made specifically towardspurchase of the qualifying asset. The amount ofborrowingcoststhattheCompanycapitalizesduringa period does not exceed the amount of borrowing costs incurred during that period.

I. Leases

Operatingleases

Leases where the lessor effectively retainssubstantiallyalltherisksandbenefitsofownershipof the leased asset are classified as operatingleases. Operating lease charges are recognized asanexpenseintheStatementofProfitandLossonastraight-linebasisovertheleaseterm.

J. Depositsprovidedtolessor

Thecompanyisgenerallyrequiredtopayrefundablesecuritydepositsinordertoobtainpropertyleasesfrom various lessors. Such security deposits arefinancial assets and are recorded at fair value oninitial recognition. The difference between theinitial fairvalueandtherefundableamountofthedeposit is recognized as a lease prepayment. Theinitial fair value is estimated as the present valueof the refundable amount of security deposit,discountedusingthemarketinterestratesforsimilarinstruments.“Subsequenttoinitialrecognition,thesecuritydepositismeasuredatamortizedcostusingthe effective interest method with the carryingamount increasedover the leaseperiodup to therefundable amount. The amount of increase in the carryingamountofdepositisrecognizedasinterestincome. The lease prepayment is amortized on astraightlinebasisovertheleasetermasleaserentalexpense.

K. Revenue

Revenue from the sale of Flat/Plots is measuredat the fair value of the consideration received orreceivable, net of returns, trade discounts andvolume rebates. Revenue is recognized when the

significant risks and rewards of ownership havebeen transferred to the buyer, recovery of theconsiderationisprobable,theassociatedcostsandpossiblereturnofgoodscanbeestimatedreliably,there is no continuing management involvementwiththegoods,andtheamountofrevenuecanbemeasuredreliably.InterestincomeisrecognizedasitaccruesinStatementofProfitandLossusingtheeffectiveinterestmethod.

Profitontradingofmutualfundunitsisrecognizedonlyonredemptionofunits.

L. Impairmentofnon-financialassets

ThecarryingamountoftheCompany’snon-financialassets,otherthandeferredtaxassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists, then the asset’s recoverable amount isestimated.

The recoverable amount of an asset or cashgeneratingunitisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell. Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtopresentvalueusingapre-taxdiscount rate thatreflects current market assessments of the timevalue ofmoney and the risk specific to the asset.Forthepurposeof impairmenttesting,assetsthatcannotbetestedindividuallyaregroupedtogetherinto the smallest group of assets that generates cash inflows from the continuing use that are largelyindependentofcashinflowsofotherassetsorgroupofassets(thecashgeneratingunit).

An impairment loss is recognized if the carryingamountofanassetoritscashgeneratingunitexceedsits estimated recoverable amount. ImpairmentlossesarerecognizedintheStatementofProfitandLoss.Impairmentlossesarerecognizedinrespectofcash generating units are allocated first to reducethecarryingamountofanygoodwillallocatedtotheunitsandthentoreducethecarryingamountoftheother assets in the unit or group of units on a pro rata basis.

Reversalofimpairmentloss

Impairment losses recognized in prior periods areassessedateachreportingdateforanyindicationsthatthe loss has decreased or no longer exists.

Animpairmentlossisreversediftherehasbeenachangein the estimates used to determine the recoverableamount. An impairment loss is reversed only to theextentthattheasset’scarryingamountdoesnotexceed

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thecarryingamountthatwouldhavebeendetermined,netofdepreciationoramortization,ifnoimpairmentlosshad been recognized directly in other comprehensiveincomeandpresentedwithinequity.

M. Earningspershare(EPS)

Basic earnings per share are computed using the weighted average number of equity sharesoutstanding during the period.

Dilutedearningspershareiscomputedbydividingthe net profit after tax by the weighted averagenumber of equity shares considered for derivingbasic EPS and also weighted average number ofequity shares that could have been issued uponconversion of all dilutive potential equity shares.Dilutive potential equity shares are deemedconvertedasofthebeginningoftheperiod,unlessissued at a later date. Dilutive potential equityshares are determined independently for eachperiodpresented.Thenumberofequitysharesandpotentially dilutive equity shares are adjusted forbonus shares, as appropriate.

N. Cashandcashequivalents

Cash and cash equivalent in the balance sheetcomprise cash on hand, cash at banks, demanddeposits,short-termdepositswithbalancematurityof three months or less as at the balance sheet date, whicharesubjecttoaninsignificantriskofchangesinvalue.

For the purpose of Statement of Cash Flows, cash andcashequivalentscomprisecashonhand,cashat banks, demand deposits, short-term depositswith balance maturity of three months or lessfrom the balance sheet date and other short term investments, thatarereadilyconvertibletoknownamounts of cash and which are subject to aninsignificantriskofchangesinvalue.

O. EmployeeBenefits

i. ShortTermBenefits

Employee benefits (other than postemployment benefits) which fall due whollywithintwelvemonthsaftertheendoftheyearin which the employees render the relatedservicearerecognizedattheamountexpectedto be paid for it.

ii. PostEmploymentBenefits

TheCompanyparticipatesinvariousemployeebenefit plans. Post-employment benefits are

classifiedaseitherdefined contributionplansor defined benefit plans. Under a definedcontribution plan, the Company’s onlyobligation is to pay a fixed amount with noobligation to pay further contributions if thefunddoesnotholdsufficientassetstopayallemployeebenefits. The relatedactuarial risksfall on the employee. The expenditure fordefined contribution plans is recognized asexpenseduringtheperiodwhentheemployeeprovidesservice.Underadefinedbenefitplan,itistheCompany’sobligationtoprovideagreedbenefitstotheemployees.TherelatedactuarialandinvestmentrisksfallontheCompany.Thepresentvalueofthedefinedbenefitobligationsis calculated using the projected unit creditmethod.

The Company has the following post-employmentbenefitplans:

Gratuity

InaccordancewiththePaymentofGratuityAct,1972, the Company provides for a lump sumpayment to eligible employees, at retirementor termination of employment based on thelast drawn salary and years of employmentwith the Company. The Company’s obligationin respect of the gratuity plan, which is adefinedbenefitplan, isprovidedforbasedonactuarial valuation using the projected unitcredit method. Actuarial gains or losses are recognized in other comprehensive incomeand are not reclassified to profit or loss insubsequent periods.

iii. Otherlongtermemployeebenefits

LeaveEncashment

The employees of the Company are entitled toleave encashment. The employees can carryforward a portion of the unutilized accumulatingleaves and utilize it in future periods or receivecashat retirementor terminationof employment.The Company records an obligation for leaveencashment in the period in which the employeerenderstheservicesthatincreasesthisentitlement.TheCompanymeasurestheexpectedcostofleaveencashment as the additional amount that theCompanyexpects topayasa resultof theunusedentitlement that has accumulated at the end ofthe reporting period. The Company recognizesaccumulated leaveencashmentbasedonactuarial

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valuation. Non-accumulating leave encashmentarerecognizedintheperiodinwhichtheabsencesoccur.TheCompanyrecognizesactuarialgainsandlosses immediately in the statement of profit andloss.

P. Provisions&Contingencies

A provision arising from claims, litigation,assessment, fines, penalties, etc. is recognizedwhen theCompanyhasapresentobligation (legalorconstructive)asaresultofapasteventanditisprobable that an outflow of resources embodyingeconomic benefits will be required to settle theobligationand a reliable estimate canbemadeofthe amount of the obligation. These are reviewedateachbalancesheetdateandadjustedtoreflectcurrent management estimates. Contingentliabilities are disclosed in respect of possibleobligations that have arisen from past events andthe existence of which will be confirmed only bythe occurrence or non-occurrence of one or more uncertain future events not wholly within thecontrol of the enterprise. When there is a possible obligationorpresentobligationwherethelikelihoodofanoutflowisremote,nodisclosureorprovisionismade.

A contingentassetisapossibleassetthatarisesfrompasteventsandwhoseexistencewillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheentity.Acontingentassetisdisclosed,whereaninflowofeconomicbenefitsisprobable.

Whensomeoralloftheeconomicbenefitsrequiredto settleaprovisionareexpected tobe recoveredfromathirdparty,thereceivableisrecognizedasanasset,ifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.

Iftheeffectofthetimevalueofmoneyismaterial,provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risksspecific to the liability.When discounting is used,theincreaseintheprovisionduetothepassageoftimeisrecognizedasafinancecost.

Q. IncomeTaxes

Incometaxcomprisescurrenttaxand deferred tax. Income tax expense is recognized in

thestatementofprofitand lossexcept to theextent itrelatestoitemsdirectlyrecognizedinequityorinothercomprehensiveincome.

CurrentTax

Current tax for the current and prior periods are measuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthoritiesbasedonthetaxableincome for the period. The tax rates and tax laws used to compute the current tax amount are those that are enactedor substantivelyenactedby the reportingdateand applicable for the period. The Company offsetscurrent tax assets and current tax liabilities, where ithasa legallyenforceableright tosetofftherecognizedamountsandwhere it intendseither to settleonanetbasisortorealizetheassetandliabilitysimultaneously.

DeferredTax

Deferred tax is recognized using the balance sheetapproach.Deferredtaxassetsandliabilitiesarerecognizedfordeductibleandtaxabletemporarydifferencesarisingbetween the taxbaseofassetsand liabilitiesand theircarrying amount in standalone financial statements,except when the deferred tax arises from the initialrecognition of goodwill or an asset or liability in atransactionthatisnotabusinesscombinationandaffectsneitheraccountingnortaxableprofitsorlossatthetimeofthetransaction.

Deferred taxassetsare recognized to theextent that itis probable that taxable profitwill be available againstwhich the deductible temporary differences, and thecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilized.

Deferred tax liabilities are recognized for all taxabletemporarydifferences.

Thecarryingamountofdeferred taxassets is reviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilized.

Deferred tax assets and liabilities aremeasured at thetaxratesthatareexpectedtoapplyintheperiodwhentheasset is realizedor the liability is settled,basedontax rates (and tax laws) that have been enacted orsubstantivelyenactedatthereportingdate.

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2.PROPERTY,PLANTANDEQUIPMENTThefollowingtableshowschangesinProperty,PlantandEquipmentduringtheyearended31stMarch2019 Rs.Inlakhs

LandFreehold

LandLeasehold

Building Plant&Machinery

ElectricalInsttalation

Moulds Furniture&Fixtures

OfficeEquipments

Vehicles Computers Total

CostorValuationAs at 1.4.2018 90.80 151.42 1,249.90 3,525.54 147.75 1,272.80 26.61 27.83 127.23 24.83 6,644.71Additions - - 4.35 17.73 - 137.69 10.55 3.58 27.12 1.93 202.95BranchTrf(Received) - - - 112.36 1.48 43.07 - 1.86 - - 158.77Disposals - - - (62.67) (0.86) (47.76) - - (0.47) - (111.76)Branch Trf (Send) - - - (112.36) (1.48) (43.07) - (1.86) - - (158.77)As at 31.03.2019 90.80 151.42 1,254.25 3,480.60 146.89 1,362.73 37.16 31.41 153.88 26.76 6,735.90DepreciationAs at 1.4.2018 - 3.51 117.24 794.97 30.33 195.49 8.12 10.76 39.89 12.72 1,213.03Chargesfortheyear - 1.65 60.11 391.82 14.56 120.52 3.54 4.35 19.90 6.41 622.87BranchTrf-Received - - - 12.17 - 8.29 - 0.19 - - 20.65Disposals - - - (27.14) - (1.92) - - (0.14) - (29.20)Branch Trf (Send) - - - (12.17) - (8.29) - (0.19) - - (20.65)As at 31.03.2019 - 5.16 177.35 1,159.65 44.90 314.09 11.66 15.11 59.65 19.13 1,806.70NetBlockAs at 31.03.2019 90.80 146.26 1,076.90 2,320.95 101.99 1,048.64 25.50 16.30 94.23 7.63 4,929.20Asat31.3.2018 90.80 147.91 1,132.67 2,730.56 117.41 1,077.31 18.49 17.07 87.34 12.11 5,431.68

3. CAPITAL WORK IN PROGRESSThe following table shows change in Capital Work in Progress during the year ended 31st March 2019

Particulars Capital work in progress

As at 1.4.2018 10.80 Addition - Amount transferred from CWIP 10.80 As at 31.03.2019 -

4. INVESTMENT PROPERTY

ThefollowingtableshowschangesininvestmentPropertyduringtheyearended31stMarch2019

Building Total(Rs.inlakhs)

CostorValuationAs at 1.4.2018 26.90 26.90 Additions 0.00 0.00 Disposals 0.00 0.00 As at 31.03.2019 26.90 26.90 DepreciationAs at 1.4.2018 1.02 1.02 Chargesfortheyear 0.51 0.51Disposals 0.00 0.00 As at 31.03.2019 1.53 1.53 NetBlockAs at 31.03.2019 25.37 25.37 Asat31.3.2018 25.88 25.88OtherdisclosuresasperInd-AS40“InvestmentProperty”(i)AmountrecognisedinStatementofprofitandlossforinvestmentproperties YearEnded

31.03.2019YearEnded31.03.2018

Rental income 4.50 -

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5. INTANGIBLE ASSETS

Particulars Software TotalGrossCarryingvalueAs at 1.4.2018 14.94 14.94 Addition 18.60 18.60Deletions - - As at 31.03.2019 33.54 33.54

AmortizationAs at 1.4.2018 4.28 4.28 Chargesfortheyear 6.03 6.03Deletions - - As at 31.03.2019 10.31 10.31

NetCarryingValueAs at 31.03.2019 23.23 23.23 Asat31.3.2018 10.66 10.66

Directoperatingexpensesfrompropertythatgeneratedrentalincome - - Directoperatingexpensesfrompropertythatdidnotgeneraterentalincome - -

(ii)ContractualObligationsandrestrictionsTheCompanyhasnorestrictionsontherealisabilityofitsinvestmentpropertiesandnocontractualobligationstopurchase,constructordevelopinvestmentpropertiesorforrepairs,maintenanceandenhancements.(iii)FairValueofinvestmentproperty YearEnded

31.03.2019YearEnded31.03.2018

Investmentproperties 160.00 178.3EstimationoffairvalueThecompanyobtainsindependentvaluationsforitsinvestmentpropertiesatleastannually.Thebestevidenceoffairvalueiscurrentpricesinanactivemarketforsimilarproperties.Wheresuchinformationisnotavailable,thecompanyconsidersinformationfromavarietyofsourceincluding:-Currentprices in anactivemarket forpropertiesofdifferentnatureor recentpricesof similarproperties in less activemarkets,adjustedtoreflectthosedifferences-Discountedcashflowprojectionsbasedonreliableestimatesoffuturecashflows-Capitalised income projections based upon a property’s estimated netmarket income and a capitalisation rate derived from ananalysisofmarketevidenceThefairvaluesofinvestmentinpropertieshavebeendeterminedaspertheSaleagreementexecutedbythecompanyon18thMarch2019withMr.MallikarjunaKalashettyandMrs.SujataKalashettyforsaleofproperty.

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NON CURRENT ASSETS

Particulars As at 31st March 2019 As at 31st March 20182 Property Plant & Equipment

Property,Plant&Equipment(RefNote2) 4,929.20 5,431.68Total Property Plant & Equipment 4,929.20 5,431.68

Particulars As at 31st March 2019 As at 31st March 20183 Capital work in progress

Capitalworkinprogress(RefNote3) - 10.80Total Capital work in progress - 10.80

Particulars As at 31st March 2019 As at 31st March 20184 Investment Property

InvestmentProperty(RefNote4) 25.37 25.88Total Capital work in progress 25.37 25.88

5 Other Intangible Assets As at 31st March 2019 As at 31st March 2018OtherIntangibleAssets(RefNote5) 23.23 10.66

Total Other Intangible Assets 23.23 10.66

FINANCIAL ASSETS6 Investments As at 31st March

2019As at 31st March

2018InvestmentsatfairvaluethroughOCI(Fullypaid)InvestmentinAssociatesInvestmentinPreferenceShares-Unquotedi)84,500(PreviousYear-84,500)6%RedeemableNon-CumulativePreferenceSharesofRs.100/-eachofPacificPearlFinance&LeasingLtd

84.50 84.50

ii)7,06,000PreferenceShares(PreviousYear-7,06,000)ofRs.100/-eachinPearlEngineeringPolymersLtd. 55.92 55.92InvestmentinEquityShares-Unquotedi)54,92,960EquityShares(PreviousYear-Nil)EquitySharesofRs.10/-eachinPearlEngineeringPolymersLtd. 67.01 - InvestmentinEquityShares-Quotedi)NilEquityShares(PreviousYear-54,92,960)EquitySharesofRs.10/-eachinPearlEngineeringPolymersLtd. - 67.01 ii)27,450(PreviousYear27,450)EquitySharesofRs.10/-eachinPearlApartmentsLtd. 0.87 0.87

TotalInvestments 208.30 208.30 AggregatemarketvalueofQuotedInvestments 113.07 67.88AggregateamountofQuotedInvestments 0.87 67.88AggregateamountofUnquotedInvestments 207.43 140.42

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7 Loans As at 31st March 2019 As at 31st March 2018SecurityDeposits-unsecured-consideredgood - Considered Good 249.74 266.54-LessProvisionforDoubtful - 249.74 - 266.54

Total Loans 249.74 266.54

8 Other Non Current Assets As at 31st March 2019 As at 31st March 2018VatRecoverable 0.37 0.37Balanceswithexciseandcustomauthorities 4.43 17.45PrepaidExpenses 7.75 5.65ExciseDutyunderprotest - - CapitalAdvances 16.79 46.80Advancetosupplier - - Otheradvances 4.73 12.50Less:Provisionfordoubtfuladvances (4.69) 0.04 (4.69) 7.81

Total Other Non Current Assets 29.38 78.08 CURRENT ASSETS

9 Inventories As at 31st March 2019 As at 31st March 2018Raw Materials 534.52 548.91Raw Materials in transit 27.59 - Finished Goods and Accessories 1,098.90 1,112.52Semi-finishedGoods 105.38 104.66PackingMaterials 196.54 201.35Stores & Spares 234.31 226.53Spares in Transit - 1.12 StockinTrade 46.38 22.53

TotalInventories 2,243.62 2,217.62

FINANCIAL ASSETS10 Investments As at 31st March 2019 As at 31st March 2018

InvestmentsatfairvaluethroughOCI(Fullypaid)Othersi)2,000(PreviousYear2,000)EquitySharesofRs.10/-inValliantCommunicationsLtd. 0.56 1.09 ii)3,300(PreviousYear3,300)EquitysharesofRs.10/-eachofPasupatiFincapLtd. 0.13 0.14iii)100(PreviousYear100)EquitysharesofRs.10/-eachofPrismCementLtd. 0.10 0.11 iv)5,000(PreviousYear5,000)EquitysharesofRs.10/-eachofMasterTrustLtd. 1.65 4.50v)600(PreviousYear600)EquitysharesofRs.10/-eachofDionGlobalSolutionsLtd 0.02 0.14vi)5,900(PreviousYear5,900)EquitysharesofRs.10/-eachofMarketCreatorLtd. 0.25 0.31

TotalInvestments 2.71 6.29

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11 Trade Receivables As at 31st March 2019 As at 31st March 2018

Unsecuredconsideredgood 4,351.15 4,781.10Unsecuredconsidereddoubtful 159.04 159.04

4,510.19 4,940.14Less:ProvisionforDoubtfulDebts (159.04) (159.04)

TotalTradeReceivables 4,351.15 4,781.10

12 Cash and Cash Equivalents As at 31st March 2019 As at 31st March 2018BalanceswithBanks - Current account 37.12 114.29Cash in hand 7.63 10.23DepoistswithOriginalMaturityformorethan3monthsbutlessthan12months(MarginMoney)

193.26 238.01 213.13 337.65

TotalCashandCashEquivalents 238.01 337.65

13 Loans As at 31st March 2019 As at 31st March 2018SecurityDeposits-secured-consideredgood 25.53 12.00

Total Loans 25.53 12.00

14 Other Financial Assets As at 31st March 2019 As at 31st March 2018InterestReceivables 15.01 16.07 OthersReceivables 0.28 0.03

Total Other Financial Assets 15.29 16.10

15 Current Tax Assets (Net) As at 31st March 2019 As at 31st March 2018Incometaxadvances(netoftaxliability) 27.96 21.64

Total Current Tax Assets (Net) 27.96 21.64

16 Other Current Assets As at 31st March 2019 As at 31st March 2018Advances Recoverable from Related Parties-Unsecured-consideredgoodVATRecoverable 4.14 12.82BalanceswithGST,exciseandcustomauthorities 82.82 79.38PrepaidExpenses 35.82 41.80Tour&OtheradvancestoStaff 15.40 14.58CapitalAdvances-unsecured-consideredgood - - Advancetosupplier 96.34 103.25DiscountsReceivable - .0 - Others 13.93 12.02

Total Other Current Assets 248.45 263.85

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EQUITY AND LIABILITIESSTATEMENTOFCHANGEINEQUITYFORTHEYEARENDED31STMARCH,2019EQUITY SHARE CAPITAL

17

Particulars As at 31st March 2019 As at 31st March 2018AUTHORISED3,00,00,000(Previous Year-3,00,00,000) Equity shares of Rs.10/- each

3,000.00 3,000.00

20,00,000(Previous Year-20,00,000) Non Cumulative Redeemable Preference Shares of Rs.100/- each

2,000.00 2,000.00

Total Authorised Capital 5,000.00 5,000.00ISSUED, SUBSCRIBED & FULLY PAID UP168,34,932(Previous Year 168,34,932) Equity shares of `10/-each.

1,683.49 1,683.49

Less : Calls in Arrears (0.81) 1,682.68 (0.81) 1,682.68Total issued, subscribed and paid-up capital 1,682.68 1,682.68

(a)Thereconciliationofthenumberofequiysharesoutstandingissetoutbelow:-Particulars No.ofShares AmountAs at 31st March 2018 16,834,932 16,834,932Add/(less):Issued/(redeemed)duringtheyear - - As at 31st March 2019 16,834,932 16,834,932

(b)Numberofsharesheldbyeachequityshareholderholdingmorethan5percentoftheissuedsharecapital:Particulars No.ofShares(inlakhs) %ofholdingAs at 31st March 2018Mr. Chand Seth 8.90 5.29%PearlTelefonicsLtd.(formalyknownasSinclairExportsLtd.) 23.28 13.83%PacificPearlFinance&LeasingLtd. 11.16 6.63%ThetaInvestmentsPvtLtd 20.64 12.26%As at 31st March 2019Mr. Chand Seth 8.90 5.29%PearlTelefonicsLtd.(formalyknownasSinclairExportsLtd.) 23.28 13.83%PacificPearlFinance&LeasingLtd. 12.36 7.34%ThetaInvestmentsPvtLtd 20.64 12.26%

18 OTHER EQUITY As at 31st March 2019 As at 31st March 2018(a)ReserveandSurplusCapitalReserveBalanceatthecommencementoftheyear 144.72 144.72Add:Addition/(deletion)duringtheyear - - Balanceattheend 144.72 144.72 CapitalRedemptionReserveBalanceatthecommencementoftheyear 1,733.00 1,733.00Add:Addition/(deletion)duringtheyear - - Balanceattheend 1,733.00 1733.00 SecuritiesPremiumReserveBalanceatthecommencementoftheyear 1,868.27 1,868.27Add:Addition/(deletion)duringtheyear - -

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NON CURRENT LIABILITIES FINANCIAL LIABILITIES19 Borrowings As at 31st March 2019 As at 31st March 2018

TermLoansfromOtherParties(secured) 393.52 611.25VehicleLoansfromBanks(secured) 29.83 22.79 OtherloansandadvancesLoanfromDirectors(unsecured) 104.94 24.94CapitalAdvanceReceivedagainstsaleofproperty 10.00 -

Total Borrowings 538.29 658.98

ITermLoans(i)TermLoanofRs.20.34lakhs(PreviousYearRs.102.57lakhs)issecuredbywayofexclusivechargesonmachinesinstalledatcompany’sallunits.TheabovesaidloanisfurthersecuredbypersonalguaranteesofMr.ChandSethandMr.VarunSeth,DirectorsoftheCompany.Repayments-inquarterlyinstallmentstill10.6.2019.CurrentRateofInterestis12.70%p.a.(ii)TermLoanofRs.211.08lakhs(PreviousYearRs.344.42lakhs)issecuredbywayoffirstchargeonimmovablepropertysituatedatBaddi(HimanchalPradesh).TheabovesaidloanisfurthersecuredbypersonalguaranteesofMr. Chand Seth andMr. Varun Seth, Directors of the Company. Repayments - inmonthly installments till24.10.2020.CurrentRateofinterestis12.70%p.a.(iii)TermLoanofRs.219.68lakhs(PreviousYearRs.294.99lakhs)issecuredbywayofexclusivechargeonsomeplant&machineriesinstalledatCompany’sallunitsandalsohavenagetivelienoverthepropertybeingindustrialland & building situated at Baddi (Himanchal Pradesh). The above said loan is further secured by personalguaranteeofMr.ChandSeth&Mr.VarunSeth,DirectorsoftheCompany.Repayments-inmonthlyinstallmentstill28.02.2022.CurrentRateofinterestis12.50%p.a.(iv)TermLoanofRs.228.57lakhs(PreviousYearRs.200.00lakhs)issecuredbywayofexclusivechargeonsomeplant&machineries installedatCompany’sMahad,Baddi&Jiganiunitsandalsohavenagetive lienover thepropertybeingindustrialland&buildingsituatedatBaddi(HimanchalPradesh).TheabovesaidloanisfurthersecuredbypersonalguaranteeofMr.ChandSeth&Mr.VarunSeth,DirectorsoftheCompany.Repayments-inmonthlyinstallmentstill10.03.2023.CurrentRateofinterestis12.50%p.a.

Balanceattheend 1,868.27 1868.27 GeneralReserveBalanceatthecommencementoftheyear 147.42 147.42Add:Addition/(deletion)duringtheyear - - Balanceattheend 147.42 147.42 RetainedEarningsBalanceatthecommencementoftheyear (616.13) (352.98)Add:Profit/(loss)duringtheyear (486.44) (263.15)Balanceattheend (1,102.57) (616.13)

Total(a) 2,790.84 3277.28 (a)OtherComponentsofEquityRemeasurementofnetdefinedbenefitplanBalanceatthecommencementoftheyear 69.01 26.98Add:Profit/(loss)duringtheyear (1.32) 42.03Balanceattheend 67.69 69.01

Total(a) 67.69 69.01 Total(a+b) 2,858.53 3346.29

7




Not Applicable




















7




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2018-201971

RepaymentsofaboveTermLoansareasfollows:PeriodofPaymentofInstallments TearmLoan

(i)TearmLoan

(ii)TearmLoan

(iii)TearmLoan

(iv)From0to1years 20.34 133.34 75.32 57.15From1to2years 77.74 75.32 57.14From2to3years - - 69.04 57.14From3to4years - - - 57.14IIVehiclesLoansVehicleloansofRs.39.83lakhs(PreviousYearRs.39.17lakhs)aresecuredagainsthypothecationofrespectivevehicles.Repayments-inmonthlyinstallmenttill01.04.2023RepaymentsofaboveVehiclesLoansareasfollows:(i)From0to1years-Rs.9.98lakhs(ii)From1to2years-Rs.10.89lakhs(iii)From2to3years-Rs.11.02lakhs(iv)From3to4years-Rs.7.52lakhs(v)From4to5years-Rs.0.41lakhs

NON FINANCIAL LIABILITIES20 Provisions As at 31st March 2019 As at 31st March 2018

ProvisionforEmployeesBenefitsGratuity 274.72 273.04LeaveEncashment 67.26 66.16

Total Provisions 341.98 339.20

21 DeferredTaxLiability(Net) As at 31st March 2019 As at 31st March 2018DeferredTaxAssetsProvisionforDoubtfulDebtandAdvances 41.35 41.21ProvisionforLeaveEncashment 23.24 23.18Gratuity 71.73 70.31UnabsorbedDepreciation 292.19 135.04Bonus 7.45 11.68

435.96 281.42 LiabilitiesDepreciation 566.56 556.93Revaluationofinvestments 1.30 1.29

567.86 558.22 TotalDeferredTaxLiability(Net) 131.90 276.80

22 OtherNonCurrentLiabilities As at 31st March 2019 As at 31st March 2018Trade PayablesFor Capital Goods 46.55 95.97OthersSecurityDepositsReceived 66.16 74.11

TotalOtherNonCurrentLiabilities 112.71 170.08

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


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Not Applicable

2018-201972

CURRENT LIABILITIESFINANCIAL LIABILITIES

23 Borrowings As at 31st March 2019 As at 31st March 2018TermLoansfromOtherParties(secured) 286.15 330.73(ReferNoteNo.Iof19)VehicleLoansfromBanks(secured) 10.00 16.38(ReferNoteNo.IIof19)WorkingCapitalLoans(secured) 1,752.99 1,830.96Loans(ICD)(unsecured) 75.00 125.00

Total Borrowings 2,124.14 2,303.07LoanRepayableondemandfromBanks(secured)WorkingCapitalLoansfromBanksaresecuredbyhypothecationofinventoriesandBookDebtsandarefurthersecuredbyfirstchargeonCompany’simmovablepropertyatMahad,Jigani,andPantnagar.TheabovesaidloansarefurthersecuredbypersonalguaranteesofMr.ChandSeth&Mr.VarunSeth,DirectorsoftheCompany.

24 Trade Payables As at 31st March 2019 As at 31st March 2018CreditorsforRawmaterials* 3,007.40 3,160.96DuetoMicroandSmallEnterprises(ReferNoteNo.50) 2.93 - Others 3,004.47 3,160.96CreditorsforCapitalGoods* 65.90 96.28CreditorsforOtherService* 1,093.23 1,032.87

Total Trade Payables 4,166.53 4,290.11

25 Other Financial Liabilities As at 31st March 2019 As at 31st March 2018Interestaccruedbutnotdue 9.18 9.00 Employeebenefitspayable-BonusPayable 28.64 31.85-ExgratiaPayable 9.64 14.58-EPFPayable 15.27 15.35-ESIPayable 6.85 5.96-LTAPayable 4.61 2.02 -ProfessionalTaxPayable 0.32 0.38-SalayPayable 103.34 100.34-DirectorsRemunerationPayable 2.22 4.88

Total Other Financial Liabilities 180.07 184.36

NON FINANCIAL LIABILITIES26 Other Current Liabilities As at 31st March 2019 As at 31st March 2018

ILCInterestpayable 12.30 11.55-AdditionalGoodsTaxPayable 0.49 1.09 -ExpensePayable 283.40 251.98-SalesTax/VATPayable 4.50 0.06 -GSTPayable 42.11 77.32TDSPayble 12.27 17.98-WagesPayable 0.40 9.33UnclaimedMaturedDeposits 0.92 1.61 StaffAdvance 6.65 0.80PearlEmployeesThriftSociety 21.52 15.82

7




Not Applicable




















7




Not Applicable




















2018-201973

Stale Cheque 7.56 3.75Relief Fund 1.13 1.36AdvanceReceivedfromcustomers 64.42 16.50LICRecoveries 0.15 0.15OtherPayables - .0 4.29

Total Other Current Liabilities 457.82 413.59

27 Provisions As at 31st March 2019 As at 31st March 2018ProvisionforEmployeesBenefitsGratuity 1.16 - LeaveEncashment 22.13 23.03

Total Provisions 23.29 23.03

28 RevenuefromOperations As at 31st March 2019 As at 31st March 2018SaleofproductsIndustrysale 16,054.82 15,837.14Trade sale 1,769.60 2,115.28

17,824.42 17,952.42OtheroperatingrevenuesScrap Sales 47.09 39.51Others - 109.01

47.09 148.52 TotalRevenuefromOperations 17,871.51 18,100.94

29 Other Income As at 31st March 2019 As at 31st March 2018InterestincomeonBankDeposits 14.46 14.06SecurityDeposits 15.43 18.02RentReceived 4.50 - ExchangeRateDifference - 30.52Netgain/lossonsaleofinvestments - 1.94InsuranceClaimsReceived 2.78 2.34Balanceswrittenback 32.17 55.21ProvisionforBadandDoubtfulDebts/Advanceswrittenback

- 3.96

ProfitonsaleofFixedAssets 69.91 7.59MouldDevelopmentcharges 31.72 19.82ProvisionNoLongerRequiredwrittenback 22.22 0.50MiscIncome 27.52 24.77

Total Other Income 220.71 178.73

30 Cost of Raw Materials Consumed As at 31st March 2019 As at 31st March 2018RawMaterialsInventoryatthebeginningoftheyear 550.03 397.52Add:Purchase 9,693.07 8,415.15Less:Inventoryattheendoftheyear 562.11 9,680.99 550.03 8,262.64PackingMaterialsInventoryatthebeginningoftheyear 201.35 169.05

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201974

Add:Purchase 955.56 1,203.81Less:Inventoryattheendoftheyear 196.54 960.37 201.35 1,171.51DirectPurchasePetPreforms 146.44 134.46Caps/Wads 265.17 411.61 281.85 416.30

Total Cost of Raw Materials Consumed 11,052.97 9,850.45

ParticularsofRawMaterialsconsumed ValueRs.inlakhs

March31,2019

ValueRs.inlakhs

March31,2018PetChips 8,409.75 7,105.47Polyproplene 1,197.72 1,050.52Other 73.52 106.65

9,680.99 8,262.64

31 Purchase of Traded goods As at 31st March 2019 As at 31st March 2018PetBottles&Jars 8.61 768.93Others 144.86 89.22

153.47 858.15

32 Changes in inventories of Finished Goods, Stock in Process and Stock in Trade

As at 31st March 2019 As at 31st March 2018

InventoryatthebeginningoftheyearFinished goods and Accessories 1,112.51 1,366.40StockinTrade 22.53 35.72Semifinishedgoods 104.66 1,239.70 108.49 1,510.61InventoryattheendoftheyearFinished goods and Accessories (1,098.90) (1,112.51)StockinTrade (46.38) (22.53)Semifinishedgoods (105.38) (1,250.66) (104.66) (1,239.70)

(10.96) 270.91

33 Employee benefit Expenses As at 31st March 2019 As at 31st March 2018Salary,Wages,Bonus&OtherAllowance 1,601.09 1,700.11 ContributiontoP.F,ESI&otherFunds 137.86 146.39StaffWelfareexpenses 45.04 54.92

Total Employee benefit Expenses 1,783.99 1,901.42

34 Finance Costs As at 31st March 2019 As at 31st March 2018InterestExpenses 410.40 384.22OtherBorrowingCost 84.24 73.18

Total Finance Cost 494.64 457.40

35 Depreciation and Amortization As at 31st March 2019 As at 31st March 2018Depreciation 623.40 586.54Amortization 6.03 3.10

Total Depreciation and Amortization 629.43 589.64

7




Not Applicable




















7




Not Applicable




















2018-201975

36 Other Expenses As at 31st March 2019 As at 31st March 2018ConsumptionofStores&Spares 243.95 255.03Freight, Octroi & Cartage 629.84 747.60PowerandFuel 1,913.13 1,943.85Electricity&WaterCharges 24.96 27.81Advertisement,Publicity&Sellingexpenses 108.77 106.99 Printing,Stationery,Postage,Telephone&Telex 61.69 92.76 Rent 118.53 109.50Repairs & Maintenance - Building 15.44 21.30-Machinery 64.34 74.12 - Others 41.10 45.52Insurance 30.37 27.42Rates & Taxes 15.34 21.59Commission 17.03 38.11Conveyance&Travellingexpenses 205.07 222.73Legal&ProfessionalFees 62.39 76.64PaymenttoAuditors(Referdetailsbelow) 20.94 24.64ExchangeRateFluctuation(Net) 33.25 0.02 Donations 0.67 0.07 Director’sSittingfees 0.40 0.45SalesTaxAdditionalDemand 4.45 2.10 Provisionfordoubtfuldebts/Advances - 6.43Baddebtswrittenoff 7.44 2.06 LossonrevaluationofInvestments 3.58 - Advanceswrittenoff 2.00 1.43Wages Contractors 708.49 708.55SecurityExpense 87.26 90.41Hire Charges 4.62 21.68Miscellaneous expenses 40.33 46.58Jobwork/Processingcharges 154.64 120.89ExcisedutyonBranchTransfer - 27.45ExcisedutyonIncrease/DecreaseofInventory - (86.01)VatReversal - 0.76 ExciseDutyOthers - 8.88

Total Other Expenses 4,620.02 4,787.36

PaymenttoAuditors StatutoryAuditors StatutoryAuditorsAudit FeesStatutoryAuditFees 5.20 6.94LimitedReviewFee 6.44 6.60 forTaxationmatters 6.30 9.60 Management&OtherServices 3.00 1.50TotalPaymenttoAuditors 20.94 24.64

Prior period adjustmentsExpenditure/(Income)Freight outward - 0.33Misc Expenses - 1.20

- 1.53

6















(Rs. In Lakhs)

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Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201976

37 Earningpershare(EPS) 2018-19 2017-18 ThefollowingreflectsthebasicanddilutedEPScomputations:

(Rs.inlakhs) (Rs.inlakhs)

TotaloperationsfortheyearNetProfit/(Loss)forallocationofbasicEPS (486.44) (263.15)

(No.inlakhs) (No.inlakhs)WeightedaveragenumberofequitysharesincalculatingbasicEPS

168.35 168.35

Basic Earning per share (Rs.) (2.89) (1.56)TotalNoofweightedaverageEquitySharesincludingdilutedpotentialEquitySharesoutstandingduringtheyearDilutedEarningpershare(Rs.)

168.35 168.35(2.89) (1.56)

38 Estimatedamountofcontractsremainingtobeexecuted (Rs.inlakhs) (Rs.inlakhs)onCapitalaccountandnotprovidedfor(NetofAdvances) 42.23 21.15

39 ContingentLiabilities (Rs.inlakhs) (Rs.inlakhs)Bills discountedInrespectofguaranteesexecutedbyBanksagainstlodgmentofcounterguaranteesoftheCompany 159.31 92.95*ProvidedbywayofMarginMoneyRs.39.83lakhs(PreviousYearRs.23.24lakhs)InrespectofServiceTax - 0.04InrespectofdemandsforExciseDuty* 378.23 378.23*includes:TheCompanyhadreceivedforitsunitatMahadshowcausenoticefrom:-Dy.CommissionerofCentralExcise.MahadDivision issuedSCNforproducing&clearingbothdutiableandnondutiableproductunderNotification No. 4/1997 Dated 01.03.1997 for Rs. 360.59 lakhs fortheperiodfromMarch1997toJune1997.ItappearsthatAppealofdepartmentissetasidebyCESTATanddepartmenthasfiledappealbefore Supreme Court in samematter for earlier period. This casewasincallbookandhasbeenheardnowbyCommissionerofCentralExcise,Raigadon11.12.2013andorderisawaited.JointCommissionerofCentral Excisehasgivennoticefir forexcessavailmentofcenvatcreditonthesupplyofpetchipsbySOUTHASIANPETROCHEM.againstinvoicesfrom16.07.2004to14.08.2004.DutyrecoverableRs.7,18,752/-(dutyRs.704659/-+ECRs.14093/-).ForCurrentyearNil(forpreviousyearAsst.CommissionerofCentralexciseissuednoticeforRs21221/-forinterestpaymentonreversedthe cenvat amount against Rm& packing material destroyed infire incident .point taken in EA 2000Audit . REPLY SUBMITTEDON27.08.2015TOASSTTCOMMCENTRALEXCISE.)Asst. Commissioner of Central excise rejected our remissionapplication submitted 20.04.2015 for damaged of FG in Fire of Rs.7,22,122/-.REPLYFORTHATSUBMITTEDON27.04.17.The Superintendent of Central Excise Baddi has issued show cause notice for reversal of cenvat credit taken on capital goods of Rs.2,83,049/-on28.12.16.ReplyforthatsubmittedtotheSuperintendentof Central Excise Baddi

7




Not Applicable




















7




Not Applicable




















2018-201977

Asst. Commissioner has issued show cause notice relating tosupplementary invoicesraisedfromJanuary2001toApril2003andpaymentofdifferentialdutybytheCompany.DemandofRs.40,000/-approxraisedbythedepartmentfordelayinpaymentofdifferentialduty.InrespectofsalesTax* 24.69 238.36Inrespectofassessmentorderfortheyear2009-10ofitsunitatPantNagar of Rs. 19,21,266/- (CST & VAT demand)Inrespectofassessmentorderfortheyear2010-11ofitsunitatPantNagarofRs.5,47,435/-(CST&VATdemand)ForCurentyearofbelowcases contingent lability IsNILdue to setaside and remandback toAssessingoffice for fresh assessmentbyCommissioner Appeals Sales TaxIn respect of assessment order for the year 2005-06 of its unit atmahadofRs.102.67lakhs.(VAT)In respect of assessment order for the year 2005-06 of its unit atmahadofRs.123.84lakhs.(CST)In respect of assessment order for the year 2008-09 of its unit atmahadofRs.11.85lakhs.(CST)

40 ValueofimportscalculatedonCIFbasisRaw Materials 3,535.47 2,409.56Components and Spare parts - - Traded goods - - Capital goods - -

41 Expenditureinforeigncurrency(accrualbasis)Travellingandconveyance - - Others 7.60 -

42 Earningsinforeigncurrency(accrualbasis)Exports at F.O.B Value - Finished Goods 105.30 27.67

43 TheForeignCurrencyexposurethatarenothedgedbyderivativeinstrumentsorotherwiseareasunder:

Particulars 2018-19 2017-18InForeignCurrency

Rs.inlakhs InForeignCurrency

Rs.inlakhs

TradeReceivableUSD 6,953 4.81 5,814 3.77

Trade PayableUSD 1,325,663 917.89 1,775,686 1,151.35EURO 10,152 7.89 - -

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201978

44 ImportedandIndigenousRawMaterials,ComponentsandSparepartsconsumed

%ofTotal ValueRs.inlakhs

% of Total Value Rs.inlakhs

RawMaterialsImported 33.69 3,723.36 25.31 2,493.51Indigenouslyobtained 66.31 7,329.61 74.69 7,356.94

100 11,052.97 100 9,850.45Spareparts&ComponentsImported - - - - Indigenouslyobtained 100 243.95 100 255.03

100 243.95 100 255.03

45 Purchasesarenetofincentivesreceived.

46 RelatedpartydisclosuresNameofrelativepartiesandrelatedpartyrelationshipKeyManagementPersonnelMr.Chand Seth - Chairman & Managing DirectorMr.Varun Seth - Whole Time DirectorMr. Ramesh Mehra - Whole Time DirectorRelativesofKeyManagementpersonnelandtheirenterpriseswheretransactionshavetakenplaceMrs. Suneeta SethMr. Amit SethMr.UditSethRelatedpartieswherecontrolexistsPearlFlatsIndiaLtdPacificPearlFinance&LeasingLtdPearlTelefonicsLtd(FormerlySinclairExportsLtd)ThetaInvestmentsPvtLtdPearlEngineeringPolymersLtd.

47 RelatedpartytransactionsKeyManagementPersonnelRemunerationpaidMr Chand Seth 51.82 65.48Mr Varun Seth 42.99 48.18Mr Ramesh Mehra 12.12 14.02LoantakenMr Chand Seth 130.00 35.00LoanpaidMr Chand Seth 50.00 10.06 OutstandingpayableMr Chand Seth 106.33 27.01 Mr. Varun Seth 0.85 1.62 Mr. Ramesh Mehra 0.83 1.04

7




Not Applicable




















7




Not Applicable




















2018-201979

48 RelativesofKeyManagementPersonnelRemunerationpaidMr Amit Seth 26.89 30.28MrUditSeth 26.89 30.28RentpaidThetaInvestmentsPvtLtd 6.90 6.60 Mrs Suneeta Seth 12.00 12.00 OutstandingPayableMr. Amit Seth 1.31 1.45Mr.UditSeth 1.31 1.45Mrs Suneeta Seth 1.08 1.08

49 GratuityandotherpostemploymentbenefitplansEmployeesBenefitsTheCompanyhasadoptedAccountingStandard(AS)-15,“EmployeesBenefits”notifiedintheCompanies(AccountingStandards)Rules2006.TheCompanyhasclassifiedvariousemployeesbenefitsasunder:DefinedContributionPlansTheCompanyhasrecognizedthefollowingamountsintheProfit&LossAccountsfortheyearI.Employer’sContributiontoProvidentFund 45.56 51.84II.Employer’sContributiontoSuperannuationFund 15.20 16.21 III.Employer’sContributiontoEmployees’PensionScheme

46.52 48.58

IV.Employer’sContributiontoEmployees’StateInsuranceScheme

25.70 24.18

DefinedBenefitPlansValuationsinrespectofGratuity,LeaveEncashmentandCompensatedAbsenceshavebeencarriedoutbyindependentactuary,asattheBalanceSheetdatebasedonthefollowingassumptions.a) Discount Rate (per annum) 7.75% 7.75%b)Rateofincreaseoncompensationlevels/escalationinsalary

5.00% 5.00%

c)ExpectedrateofReturnonPlanAssets 7.75% 7.75%d)ExpectedAverageremainingworkinglivesofemployeesinnumberofyears 17yrs 18yrs

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201980

ChangesinthePresentValueofObligation Gratuity(Funded)

31.03.2019 Rs.inlakhs

LeaveEncashment31.03.2019 Rs.inlakhs

Gratuity(Funded) 31.03.2018Rs.inlakhs

LeaveEncashment 31.03.2018Rs.inlakhs

PresentvalueofObligationasat1stApril,2018 307.09 79.38 312.63 113.62InterestCost 23.80 6.15 24.23 8.81PastServiceCost - - 20.02 - CurrentServiceCost 22.31 14.24 24.67 15.82Curtailment Cost (Credit) - - - - Impactduetosettlement - - - - SettlementCost(Credit) - - - - DirectlypaidbyEnterprises - - - - BenefitsPaid (42.99) (26.60) (74.04) (18.11)ActuarialLoss/(Gain) (5.19) 6.51 (0.42) (40.76)ForeignCurrencyexchangeratedifferentfromtheenterprisesreportingcurrencyPresentvalueofObligationasat31st March , 2019 305.03 79.68 307.09 79.38ChangesintheFairValueofPlanAssetsFairValueofPlantAssetsasat1stApril,2018 34.05 - 20.27 - ExpectedReturnonPlanAssets 2.64 - 1.57 - ActuarialLoss/(Gain) (1.55) - 0.84 - Employers’Contribution 36.99 - 85.41 - ContributiontransferredfromGroupCompanies - - - - BenefitsPaid (42.99) - (74.04) - ContributionsbyPlan - - - - FairValueofPlanAssetsasat31st March, 2019 29.15 - 34.05 - PercentageofeachCategoryofPlanAssetstototalFairValueofPlanAssetsasat31stMarch,2019GOISecurities - - - - PublicSecurities - - - - BankDeposits(SpecialDepositScheme1975) - - - - StateGovernmentSecurities - - - - InsurancePolicies 29.15 - 34.05 - Other(includingBankBalances) - - - - ReconciliationofPresentValueofDefineBenefitObligationandthefairvalueofAssetsPresent value of funded Obligation as at 31st March, 2019

305.03 79.68 307.09 79.38

FairValueofPlanAssetsasat31stMarch,2019 29.15 - 34.05 - Funded ( Assets)/Liability recognized in the BalanceSheetPresentvalueofUnfundedObligationasat31stMarch,2019

275.87 79.68 273.04 79.38

Unrecognizedpastservicecost - - - - Unrecognizedactuarial(Gain)/Losses - - - - UnfundedNetLiabilityrecognizedintheBalanceSheet 275.87 79.68 273.04 79.38AmountrecognizedintheBalanceSheetPresentvalueofObligationasat31st March ,2019 305.03 79.68 307.09 79.38

7




Not Applicable




















7




Not Applicable




















2018-201981

FairValueofPlantAssetsasat31st March ,2019 29.15 - 34.05 - Assets/LiabilityrecognizedintheBalanceSheet(Net) 275.87 79.68 273.04 79.38ExpensesrecognizedintheProfit&LossAccountCurrentServiceCost 22.31 14.24 24.67 15.82PastserviceCost - - 20.02 - InterestCost 23.80 6.15 24.23 8.81ExpectedReturnonPlanAssets (2.64) - (1.57) - Curtailment Cost (Credit) - - - - SettlementCost(Credit) - - - - Netactuarial(Gain)/Loss (1.26) 6.51 (1.26) (40.76)ContributiontransferredfromGroupCompaniesTotalExpensesrecognizedintheProfit&LossAccount 42.21 26.90 66.09 (16.13)

50 Detailsofdues tomicroenterprisesandsmallenterprisesasdefinedunderTheMicro,SmallandMediumEnterprisesDevelopment(MSMED)Act2006*

Particulars March31,2019

Rs.inlakhs

March31,2018

Rs.inlakhsa. The principal amount and the interest due thereupon remaining

unpaidtoanysupplieras-Principalamountduetomicroandsmallenterprises 2.93 Nil -Interestdueonabove 0.10 Nil

b. Theamountof interestpaidby thebuyer in termsofsection16oftheMicroandSmallEnterpriseDevelopmentAct,2006,alongwiththeamountsofthepaymentmadetothesupplierbeyondtheappointeddayduringeachaccountingyear

Nil Nil

c. The amountof interest due andpayable for theperiodof delay inmakingpayment (whichhavebeenpaidbutbeyond theappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedunderMicroandSmallEnterpriseDevelopmentAct,2006bythecompanyintermofSection16ofMicro,SmallEnterpriseDevelopmentAct,2006

Nil Nil

d. The amount of interest accrued and remaining unpaid at the end of eachaccountingyear

0.10 Nil

e. Theamountoffurtherinterestremainingdueandpayableeveninthesucceedingyears,untilsuchdatewhentheinterestduesasaboveareactuallypaidtothesmallenterpriseforthepurposeofdisallowanceas a deductible expenditure under section 23 of Micro and SmallEnterprisesDevelopmentAct,2006

Nil Nil

*This informationas required tobedisclosedunderMicroandSmall EnterprisesDevelopmentAcr,2006hasbeendeterminedtotheextentsuchpartieshavebeenidentifiedonthebasisofinformationavailablewiththecompanyduringtheyear.

51 TheCompanyisengagedinthemanufactureofPETbottles&jarsandthereisnoseparatereportablesegmentaspertheAccountingStandard17on‘SegmentReporting’notifiedintheCompanies(AccountingStandard)Rules.2006

52 Duringtheyear,ProvisionforIncomeTaxhasbeenmadeonthebasisofIncomeTaxAct,1961.

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

6















(Rs. In Lakhs)

Total Revenue

Total Expenses


Tax Expenses
















Not Applicable

2018-201982

53 DisclosureforoperatingleasesunderAccountingStandard19“Lease”.TheCompanyhastakenvariousresidentialflats/godowns/office premises (including furniture and fittings, there in as applicable) under operating leaseorleaveandlicenseagreements.Thesearegenerallynotnon-cancellableandrangebetween11monthsand10yearsunderleveandlicense,orlongerforotherleasesandarerenewablebymutualconsentonmutuallyagreeableterms.TheCompanyhasgivenrefundableinterestfreesecuritydepositsinaccordancewiththeagreedterms.NocontingentrentsarerecognizedintheP&LAccount.

54 PreviousYearfigureshavebeenregrouped/reclassified,whereverconsiderednecessarytoconformtocurrentyear’sclassification.



M.No.403873

Sd/-CHAND SETH


Sd/-VARUN SETH


Sd/-PRIYANKA





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Pearl Polymers Limited

A-97/2, Okhla Industrial Area Phase-II, New Delhi- 110020 Phone No.:011-47385300 Fax No.: 011-47480746

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