PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

190 PRIVI SPECIALITY CHEMICALS LIMITED (Formerly known as Fairchem Speciality Limited) 44 Composite Scheme of Arrangement and Amalgamation amongst Fairchem Speciality Limited (Demerged/Transferee Company) 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 from April 01, 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). Consequent 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. Accordingly, previous years numbers have been restated. Since the appointed date of demerger is March 31, 2019, 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) Accounting treatment of the arrangement in the books of Transferee company. a) I nter Company balances and transactions between the Transferor Company and Transferee Company if any stand cancelled. b) No adjustments are made to reflect fair values, or recognize any new assets or liabilities. c) 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 48,897.83 (11,524.25) 37,373.58 Capital work-in-progress 9,465.72 (87.91) 9,377.81 Intangible assets 870.00 (0.50) 869.50 Financial assets Loans and advances 807.62 (1.51) 806.11 Other financial assets 339.80 (13.78) 326.02 Income tax assets (net) 1,216.31 (59.55) 1,156.76 Other non-current assets 867.28 (125.67) 741.61 Total Non-current assets 62,464.56 (11,813.17) 50,651.39 Current assets Inventories 36423.72 (3,400.62) 33,023.10 Financial assets Investments – Loans and advances 59.5 (1.98) 57.52 Trade receivables 33069.46 (3,213.13) 29,856.33 Cash and cash equivalents 1626.2 (2.64) 1,623.56 Bank balances other than cash and cash equivalents 687.11 (16.53) 670.58 Other current assets 8238.66 (324.04) 7,914.62 Total current assets 80,104.65 (6,958.94) 73,145.71 TOTAL ASSETS (A) 142,569.21 (18,772.11) 123,797.10 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs)