PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

132 PRIVI SPECIALITY CHEMICALS LIMITED (Formerly known as Fairchem Speciality Limited) statements, irrespective of the actual date of the combination. Accordingly, previous years numbers have been restated. In context of demerger, the amounts relating for the year ended March 31, 2021 include the impact of the de-merger for the entire year and the corresponding amounts for the previous year ended March 31, 2020 have been restated after recognising the effect of the de-merger on the appointed date i.e. March 31, 2019 considering overriding effect of the Scheme. ii) The Transferor undertaking is engaged in the business of aroma chemicals operations. The amalgamation is in-line with the Company’s strategy to grow the business and saving in costs of operations. The trading business of transferee company shall continue to be carried out under the Privi Speciality Chemicals Limited. iii) Accounting treatment of the arrangement in the books of Transferee company. Business combination is accounted for using the ‘pooling of interests’ method as per Appendix C of Ind AS 103 - Business Combinations as notified under Section 230 to 232 of the Companies Act, 2013 which involves the following: a) The financial information in the 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 statements, irrespective of the actual date of the combination. Accordingly, business combinations is accounted with effect from April 1, 2018. b) The Company has recorded the asset and liabilities of the Merged Undertaking vested in it pursuant to this Scheme at the respective carrying amounts appearing in the books of the Transferor Company as prescribed in IND AS 103. c) The investment in the equity share capital of Transferor Company as appearing in the books of transferee company on effective date shall stand cancelled.. d) Inter Company balances and transactions between the Transferor Company and Transferee Company if any stand cancelled. e) No adjustments are made to reflect fair values, or recognize any new assets or liabilities. f) The deficit arising pursuant to the amalgamation, after giving effects to the above adjustments is shown as Amalgamation Reserve and excess arising pursuant to the demerger, after giving effect to the above adjustments is shown as Capital Reserve and reflected under Statement of Changes in Equity. Accordingly, the Scheme has resulted in transfer of assets and liabilities at the following summarised values: Particulars March 31, 2019 Adjustment on account of demerger March 31, 2019 (Restated) ASSETS Non-current assets Property, plant and equipment 11,524.25 22,815.41 34,339.66 Capital work-in-progress 87.91 9,289.90 9,377.81 Intangible assets – 807.98 807.98 Financial assets – Investments 2.00 3,435.36 3,437.36 Loans and advances 1.51 784.52 786.03 Other financial assets 13.78 312.24 326.02 Income tax assets (net) 59.55 1,097.21 1,156.76 Other non-current assets 125.67 615.20 740.87 Total Non-current assets 11,814.67 39,157.82 50,972.49 Current assets Inventories 3,400.62 27,884.51 31,285.13 Financial assets 1.24 (1.24) Investments – – Loans and advances 0.74 33.97 34.71 Trade receivables 3,213.13 25,353.79 28,566.92 Cash and cash equivalents 1.64 1,050.20 1,051.84 Bank balances other than cash and cash equivalents 16.53 553.34 569.87 Other current assets 324.49 7,345.64 7,670.13 Total current assets 6,958.39 62,220.21 69,178.60 TOTAL ASSETS (A) 18,773.06 1,01,378.03 1,20,151.09 NOTES TO THE STANDALONE FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs) 42 CompositeScheme ofArrangement andAmalgamation amongst FairchemSpeciality Limited (Demerged/TransfereeCompany) and Fairchem Organics Limited (Resulting Company) and Privi Organics India Limited (Transferor Company) (continued)