A Provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of
resources is expected to settle the obligation, in respect of which a reliable estimate can be made.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is
Contingent liability is disclosed in case of
(a) present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the
obligation.
(b) present obligation arising from past events, when no reliable estimate is possible
(c) a possible obligation arising from past events where the probability of outflow of resources is not remote.
Contingent assets are neither recognized, nor disclosed.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
(xii) Segment reporting
The Company determines segments based on the internal organisation and management structure of the Company and its system of
internal financial reporting and the nature of its risks and its returns. The Board of Directors of the Company has been identified as
Chief Operating Decision Maker (CODM). CODM evaluates the Company's performance, allocate resources based on analysis of
various performance indicators of the Company for disclosing in the segment report. The accounting policies adopted for segment
reporting are in line with the accounting policies of the company.
Segment revenue includes income directly identifiable with the segments.
Expenses that are directly identifiable with the segments are considered for determining the segment result. Expenses which relate to
the Company as a whole and not allocable to segments and expenses which relate to the operating activities of the segment but are
impracticable to allocate to the segment, are included under "Unallocable corporate expenses”.
Income which relates to the Company as a whole and not allocable to segments are included in Unallocable Income and netted off
from Unallocable corporate expenses.
Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities
represent the assets and liabilites that relate to the Company as a whole and not allocable to any segment.
D. RECENT ACCOUNTING DEVELOPMENTS
During FY 2025-26, the Ministry of Corporate Affairs notified amendments to certain Ind ASs:
1. Ind AS 1 - Revised guidance on classification of liabilities based on the entity's right to defer settlement, including covenant
compliance considerations.
2. Ind AS 7 & Ind AS 107 - Enhanced disclosure requirements relating to supplier finance arrangements, aimed at improving
transparency of financing structures.
3. Ind AS 12 - Accounting implications of the OECD Pillar Two global minimum tax framework, requiring reassessment of deferred
tax positions.
4. Ind AS 19 - Impact of New Labour Codes on employee benefit obligations due to revised definition of wages.
The Company has evaluated these amendments and incorporated necessary disclosures and adjustments in its financial statements,
* Preference shares include 50,00,000 (Previous year : 50,00,000) Non Cumulative, Non Convertible, Non
Participating, Redeemable Preference shares of face value of Rs. 100/- each. The preference shares carry 10%
Dividend and are redeemable at par after 10 years from the date of issue.
a) Terms/rights attached to equity shares
1) The company has only one class of Equity Shares having face value of Rs. 5/-. Each shareholder of equity share is
entitled to one vote per share. In the event of liquidation of the Company, the equity shareholders will be entitled to
receive the remaining balance of assets if any, after preferential payments and to have a share in surplus assets of the
Company, proportionate to their individual shareholding in the paid up equity capital of the Company.
2) The shareholders of the company through a resolution passed in the meeting held on 23.04.2021 approved the
subdivision of the equity share of the company from Face value of Rs. 10/- each into two equity shares of Face value
of Rs. 5/- each. The record date of subdivision was 25.05.2021.
b) Right issue of Shares
Pursuant to resolution passed at the meeting of the Board of Directors of the company held on June 10, 2024, the
Company came out with issue of shares on right basis in ratio of 1:2 for issue to its shareholders. The Company had
issued and allotted, on right basis 1,00,12,400 equity shares of face value of f 5/- each at a price of f 12.5/- (including
securities premium of f 7.5/- per equity share) to its shareholders on October 03, 2024. The object of this right issue is
to utilize the proceeds for repayment of all or certain outstanding borrowings (including interest thereon), general
corporate purpose and to meet right issue expenses. Funds raised are utilised as per below details.
Note 29 - Employee benefits
(i) Defined Contribution Plans:
The Company makes contributions towards provident fund, Employees State Insurance Corporation and other
retirement benefits for qualifying employees. Under the schemes, the Company is required to contribute a
specified percentage / fixed amount of the payroll costs to fund the benefits. The contributions as specified
under the law are paid to the respective fund set up by the government authority.
(ii) Defined Benefit Plan:
Gratuity is payable to all eligible employees of the Company on superannuation, death, permanent
disablement and resignation in terms of provisions of the Payment of Gratuity Act, 1972, or as per the
Company's scheme whichever is more beneficial.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for
gratuity were carried out as at March 31, 2026. The present value of the defined benefit obligations and the
related current service cost and past service cost, were measured using the Projected Unit Credit Method
(PUC). Further, the plan is not funded.
Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity
plan and the amounts recognised in the Company s financial statements as at balance sheet date:
Figures of 31 March 2025 are as per withdrawal rate of 14% and 16%. For 31.03.2026 the withdrawal
rate is changed to 5% and 7%
VII Risk Exposure And Asset Liability Matching
Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as
companies take on uncertain long term obligations to make future benefit payments.
Liability Risks
a) Asset-Liability Mismatch Risk-
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching
duration with the defined benefit liabilities, the company is successfully able to neutralize valuation
swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability
b) Discount Rate Risk-
Variations in the discount rate used to compute the present value of the liabilities may seem small, but in
practise can have a significant impact on the defined benefit liabilities.
c) Future Salary Escalation and Inflation Risk -
Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher
present value of liabilities especially unexpected salary increases provided at management's discretion
may lead to uncertainities in estimating this increasing risk.
Unfunded Plan Risk
This represents unmanaged risk and a growing liability. There is an inherent risk here that the company
may default on paying the benefits in adverse circumstances. Funding the plan removes volatility in
company's financials and also benefit risk through return on the funds made available for the plan.
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data
available. In addition, the Company internally reviews valuations, including independent price validation for certain instruments.
The fair value of the financial assets and liabilities are included at the amount at which the instrument that would be received to sell an asset
or paid to transfer liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
# Fair value of membership deposit (current & non-current) at the inception is estimated using a discounted cashflow model. The valuation
requires management to make certain assumptions about interest rates, maturity period, credit risk, forecasted cash flows etc.
Fair value hierarchy
The following table provides the fair value measurement hierarchy of Company's assets and liabilities grouped into Level 1 to Level 3 as
described in material accounting policies - Note 1. Further, table describes the valuation techniques used, key inputs to valuations and
quantitative information about significant unobservable inputs for fair value measurements.
During the year ended 31 March 2026 & 31 March 2025 there were no transfers between level 1 and level 2 fair value measurements and no
transfers into and out of level 3 fair value measurement.
Fair value of trade payables, Borrowings, Redemable Preference shares, security deposits, trade receivables, cash & cash equivalents, loans and
other deposits approximates their carrying value. Accordingly, fair value hierarchy disclosures are not applicable.
V aluation process to determine fair value
The fair values of the equity instruments, mutual fund units and bonds which are quoted, are derived from quoted market prices in active
markets. In the case of the investment measured at fair value and falling under fair value hierarchy Level 2 and Level 3, value has been
considered as an appropriate estimate of fair value.
The company's risk management is carried out by management, under policies approved by the board of directors. Company's treasury identifies, evaluates and hedges financial risks in close
cooperation with the company's operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as credit risk and investment of
excess liquidity.
(A) Credit risk
Credit risk in case of the company arises from cash and cash equivaslenrs, deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.
Credit Risk Management
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. T o manage this, the company periodically assesses the reliability of customers, taking into
account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
Trade Receivables
Credit risk from trade receivables is managed by establishing credit limits, credit approvals and monetoring credit worthiness of customers. Outstanding customer receivables are regularly
monitored. Refer note 8.2 for ageing of trade receivables.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availibility of funding through an adequate amount of committed credit facilities to meet obligations when due.
Due to the dynamic nature of underlying businesses, company maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company's liquidity position and cash & cash equivalents on the basis of expected cash flows. This is carried out in accordance with practice and limits
set by the company.
(C) Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change
as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all
market risk sensitive financial instruments including investments and deposits, foreign currency receivables and payables.
The Company manages market risk through a treasury department, which evaluates and excercises independent control over the entire process of market risk management. The treasuy department
recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this deparment include management of cash
resources, implementing hedging strategies for foreign currency exposures and ensuring compliance with market risk limits and policies.
(i) Foreign currency risk
The company does not operates internationally and consequently the Company is not exposed to foreign exchange risk.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate because of changes in market interest rates. The Company main interest rate risk arises
-term borrowings with fixed rates.
Interest rate risk exposure
The exposure of the Company's borrowing to interest rate changes at the end of the reporting period are as follows:
Note 32 - Capital Management
The company's objectives when managing capital are to
(i) Safeguard it's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and
(ii) Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the company may issue new shares or sell assets to reduce debt. Consistent with others in the industry, the company monitors capital on the basis
of the following gearing ratio: Net debt (total borrowings net of cash and cash equivalents) divided by total 'equity' (all components of equity including share premium and all other equity reserves
attributable to the equity share holders).
Note 35 - Audit Trail
The Company uses Tally Prime Edit Log accounting software for maintainingits books of accounts which have a feature of recording audit trail(edit log) facility. Every transaction creating an edit log of each change made in the
books ofaccount alongwith the date whensuchchangesweremade andwhomade thosechangesinsuch accountingsofiware. Thisfeature ofrecordingaudittrailhasoperated throughout the yearand wasnot tamperedwith
during the year.- The audit trail has been preserved in accordance with statutory requirements for record retention, including secure backups and restricted access protocols. The company also uses Property Management system
(PMS) formanagement of room occupancies andinvoicing Point of Sale (POS) management systemformanagement ofrestaurant andoutlet operations at theclubfromorder bookingto invoicingand Clubmasterforinventory
management and payroll management These softwares do not have audit trail (edit log) facility.
Note 36 - Going Concern Assumption
Due to historical financial performance of the Company, the management performed detailed going concern assessment and also assessed whether there is any requirement for impairment of non financial assets of the C ompany as
on March 31, 2026 as per Ind AS 36 - Impairment of Assets. For this purpose, the management obtained fair valuation report of the business for the purpose of computation of recoverable value of Cash Generating Unit (CGU) as
per the requirement of Ind AS 36 for the year ended 31.03.2025. The management believes that there is no adverse change in the fair value of assets as on 31.03.2026 considering the market conditions. Since the recoverable value of
CGU is higher than the carrying cost, the management believes that there is no requirement for impairment of non-current financial assets.
Further based on the evaluation of external and internal information available with the Company, future business projections prepared, no instances of default in paying current liabilities (including repayment of borrowings from
banks and interest thereon), continued financial support from the promoters till March 31, 2026 along with the letter of support rec eived from the promoters as on March 31, 2026, the management believes that the company will be
able to meet its liabilities existing at the date of balance sheet (i.e. March 31, 2026) as and when they fall due within a period of one year from the balance sheet date and no material uncertainty exists about the entity s ability to
continue as a going concern. Therefore considering aforementioned factors, the management believes that there is no requirement for impairment of non financial assets as on March 31, 2026 and therefore no material adjustment is
required to the financial statements for the year ended March 31, 2026.
The said investment made by the company is in compliance with Section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014.
During the year, the company hs made additional investment of Rs. 10 lakhs in Gala Techno Mahim Cluster LLP.
Note 38 - Other Notes
i. Details of Benami Property
The Company does not own any benami property neither any proceedings are initiated or pending against theCompany under the Prohibition of Benami Property Transactions Act, 1988.
ii. Borrowings secured against current assets
Although the Company has fund based borrowings from banks or financial institutions on the basis of security of current assets, there is no requirement of submittimng statement of Current Assets.
iii. Wilful Defaulter
The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
iv. Relationship with Struck off Companies
As per the information available with the Company, the Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
v. Utilisation of Borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) nor has it received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party).
Further, Company has utilised share premium received from issue of right shares to meet right issue expenses and balance amount is reflected in other equity.
vi. Details of Crypto-Currency or Virtual Currency
The Company has not traded or invested in Crypto-Currency or Virtual Currency during the financial year.
vii. Registration of charges or satisfaction with Registrar of Companies
There is no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.
viii. Undisclosed Income
There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
ix. Revaluation
The Company has not revalued its Property,Plant and Equipment and intangible assets during the year.
Note 39 - Previous year figures
Comparative previous year's figures have been reworked, regrouped and reclassified to the extent possible, wherever necessary to confirm to current year's classification and presentation.
Note 40 - The financial statements of Emerald Leisures Limited were approved by the Board of Directors and authorised for issue on May 18, 2026.
As per our report of even date attached For and on behalf of the Board of Directors of
For P G BHAGWAT LLP EMERALD LEISURES LIMITED
Chartered Accountants
SD/- SD/- SD/- SD/-
Devdatta Mainkar Nikhil Mehta Rajesh Loya Kapil Purohit
CFO & Whole
Partner CEO & Director Company Secretary
time Director
Membership No. 109795 (DIN:00252482) (DIN:00252470)
Place : Mumbai Place : Mumbai
Date : 18/05/2026 Date : 18/05/2026
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