PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

131 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 38 Dividend on equity shares Particulars As at March 31, 2021 As at March 31, 2020 (Restated) Dividend on equity shares declared and paid during the year Final dividend for the year ended March 31, 2020 - Rs. 1.50 (March 31, 2019 Rs.: 2.00) per fully paid up share 585.94 753.47 (Amount of Cash-out flow of dividend is inclusive of dividend distribution tax) 585.94 753.47 Dividends not recognized at the end of reporting period Final dividend of Rs. 2.00 per fully paid up equity shares (March 31, 2020 Rs. 1.50 per fully paid up share). This proposed dividend is subject to the approval of share holders in the ensuing annual general meeting. 781.25 585.94 (Amount of Cash-out flow of dividend is inclusive of dividend distribution tax) 781.25 585.94 39 Transfer Pricing Transactions with related parties are governed by transfer pricing regulations of the Indian Income-tax Act, 1961. The Company’s international and domestic transactions with related parties are at arm’s length as per the independent accountants report for the year ended March 31, 2020. Management believes that the Company’s international and domestic transactions with related parties post March 2020 continue to be at arm’s length and that the transfer pricing legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation. 40 Insurance recoveries towards loss by fire On April 26, 2018 a major fire broke out at the Company’s Unit 2 Plant located at MIDC Mahad. There was loss to the assets comprising of Inventories, Buildings, Plant and Machinery and other Fixed Assets, etc. which were adequately insured including coverage towards loss of profit and replacement cost of fixed assets. The Company received Rs. 2,309.26 lakhs and Rs. 4,000 lakhs during the years ended March 31, 2021 and March 31, 2020 respectively on account of Insurance claim which has been disclosed as an exceptional item. The entire Insurance Claim is now settled with the Insurance company, however, an amount of Rs. 809.26 lakhs (Out of Rs. 2,309.26 lakhs) of current year is received on April 07, 2021 subsequent to the Year end. Since the final insurance claim is settled and a settlement letter is also issued by Insurance company on or before March 31, 2021 therefore this balance amount of Rs. 809.26 lakhs as above mentioned has been recognised as an exceptional Income in statement of standalone profit and loss Account for the year ended March 2021 and shown as receivable from Insurance Company in Balance sheet as on March 31, 2021 as per requirement of the accounting standards. 41 Estimation of uncertainties related to global health pandemic from COVID-19 Government of India announced a Nationwide Lockdown due to Covid-19 Global Pandemic due to which the Company shutdown few of its plants at Mahad & Jhagadia factories (except those involved in manufacture of chemicals used in essential goods) from March 24, 2020 which continued till April 7, 2020. Although sales were partially affected during the period of shutdown, however, impact is not significant. The Company does not foresee significant impact on net realisable value of its current assets. The production and sales is not currently impacted due to supply chain issues. However, given the uncertainty due to Covid 19, the Company would continue to monitor any material changes to future economic conditions and the consequential impact on the standalone financial statements. 42 CompositeScheme ofArrangement andAmalgamation amongst FairchemSpeciality Limited (Demerged/TransfereeCompany) and Fairchem Organics Limited (Resulting Company) and Privi Organics India Limited (Transferor Company) i) Pursuant to the scheme of Arrangement and Amalgamation (‘the Scheme’) approved by the National Company Law Tribunal (‘the NCLT’), Special Bench, Mumbai vide its order dated June 30, 2020, Privi Organics India Limited (the Transferor Company), amalgamated with Fairchem Speciality Limited (Demerged / Transferee Company) with effect fromApril 1, 2019 (‘the appointed date’), and the existing business of the transferee company of speciality oleo chemicals and nutraceuticals was transferred to Fairchem Organics Limited (appointed date March 31, 2019). Pursuant to the effect of scheme, the name of Fairchem Speciality Limited changed to Privi Speciality Chemicals Limited vide certificate of incorporation pursuant to change of name issued by the Ministry of Corporate Affairs dated August 17, 2020. As per Appendix C of Ind AS 103 - Business Combinations, since merger is common control transaction, the financial information in the consolidated financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial NOTES TO THE STANDALONE FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs)