PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

147 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 1 Corporate Information Privi Speciality Chemicals Limited (Formerly known as Fairchem Speciality Limited) (‘The Company or ‘Holding Company’) and its subsidiaries (‘the company and its subsidiaries together referred to as the Group. The Holding company was incorporated on May 25, 1985 under the provisions of the Companies Act, 1956 is a public company domiciled in India. The Company was incorporated as H. K. Agro Oil Ltd. and later changed its name and style to Adi Finechem Limited. The Company is primarily engaged in the manufacture and export of aroma chemicals and in trading of chemicals. The Company’s manufacturing units are located at Mahad and Jhagadia. The equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Ltd. The group’s subsidiaries at March 31, 2021 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that are held directly by the group, and the proportion of ownership interests held equals the voting rights held by the group. The country of incorporation or registration is also their principal place of business. Name of the entity Principal activities Place of business / country of incorporation Ownership interest held by the Group March 31, 2021 Privi Biotechnologies Private Limited Chemicals India 100 Privi organics USA Corporation Chemicals United States of America 100 2 Significant accounting policies This note provides a list of the significant accounting policies adopted by the Group in the preparation of these Consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. Statement of Compliance These Consolidated financial statements of the Group comprising the Consolidated Balance Sheet as at March 31, 2021, Consolidated Statement of Profit and Loss (including other comprehensive income), Consolidated Statement of Changes in Equity, and Consolidated Cash Flow Statement for the year ended March 31, 2021, and a summary of significant accounting policies and other explanatory information have been prepared by the Group in accordance with the Indian Accounting Standards notified under Section 133 of the Companies Act, 2013 (the ‘Act’), The Audit report of statutory auditor on these Consolidated financial statements of the group will be addressed to the Shareholders. The Consolidated financial statements were authorised for issue by the Company’s Board of Directors at their meetings held on May 14, 2021. i. Basis of preparation and Presentation Basis of Preparation The Consolidated financial statements have been prepared on a historical cost basis, except for the following assets and liabilities: (i) Derivative Financial Instruments measured at fair value. (ii) Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments) (iii) Employee’s Defined Benefit Plan as per actuarial valuation. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique. In determining the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Functional & Presentation Currency Items included in the Consolidated financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The Consolidated financial statements are presented in Indian Rupee (Rs.), which is also the Company’s functional. Currency and reporting currency of the Group. All values are rounded to the nearest lakh, unless otherwise stated. ii. Principles of consolidation and equity accounting The Consolidated financial statements (CFS) include the financial statements of the Company and its subsidiaries. Subsidiaries are entities over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The group combines the financial statements of the parent and its subsidiaries line by line by adding together like items of assets, liabilities, equity, income and expenses. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs)