3.11 Provisions
i. Provisions are recognized when the company has a present obligation Itegal or constructive) as a result of a past event,
it is probable that an outflow of economic benefit will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.
ii. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the. risk and uncertainties surrounding the obLgation
iii. When some or all of the economic benefits require lo settle a provision are expected to be recovered from a third party,
the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of
the receivable can be measured reliably.
3.12 Earnings Per Share (EPS)
i. Basic EPS is computed by dividing the profit after tax by the weighted average number of equity shares outstanding
during the year/period.
ii. Diluted EPS is computed by dividing the profit after tax. as adjusted for dividend, interest and other charges lo
expenses or income relating to the dilutive potential equity shares, by the weighted average number of equity shares
considered for deriving basic EPS and the weighted average number of equity shares which could have been issued on
the conversion of all dilutive potential equity shares.
3.13 Leases
A contract is, or contains, a lease if the coniract conveys ihe right to control the use of an identified asset for a period of time
in exchange for consideration.
Company as a Lessee
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the
contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price
of the lease component and the aggregate stand-alone price of the non lease components.
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the tease
commencement dale. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling
and removing the undertying asset or restoring the underlying asset or site on which it is located. The nght-of-use assets is
subsequentlymeasured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any
remeasurement of the lease liability. The right-of-use assets (presented under property, plant and equipment in the
Balance Sheetl is depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life of nght-of-use asset. The estimated useful bves of nght-of-use assets are determined on the same basis as those
of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their
carrying amounts may not be recoverable. Impairment loss, if any. is recognised in the statement of profit and loss.
The Company measures the Lease liability at the present value of the lease payments that are not paid at the commencement
date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with
reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate
specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed
payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is
reasonably certain to exercise that option ana payments of penalties for terminating the lease, if the lease term reflects the
amount lessee exercising an option to terminate the Lease. The lease liability is subsequently remeasured by increasing Ihe
carrying to reflect interest on the tease liability, reducing the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or tease modifications or to reflect revised in-substance
fixed lease payments.
The Company recognises the amount of the re-measurement of lease liability as an adjustment to the right-of-use asset
Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of
the lease liability, the Company recognises any remaining amount of the remeasurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 to short-term leases of all assets that have a lease term
of 12 months or less and leases for which the underlying asset is of low value The lease payments associated with these
leases are recognized as an expense on a straight-line basis over the lease term.
Company as a Lessee
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The
Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term.
In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate
of return on the lessor's net investment in the lease. When the Company is an intermediate lessor it accounts for its interests ,n
the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use
asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the
Company applies the exemption described above, then it classifies the sub-lease as an operating Lease If an arrangement
contains lease and non-lease components, the Company applies Ind AS 115 Revenue to allocate the consideration in the
contract
3.14 Going Concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate
resources to continue in operational existence for the forseeable future. When preparing financial statements, management
makes an assessment of the group's ability to continue as going concern. Financial statements is prepared on going concern
bas's unless management either ntenos to liquidate the group or to cease trading, or has no realistic alternative but to do so.
When management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast
significant doubt upon the group's ability to continue as going concern, those uncertainties are disclosed When the financial
statement is not prepared on a go:ng concern basis, that face is disclosed, together with the basis on which the financial
statement is prepared and the reason why the group is not regarded as go ng concern.
3.15 Subsequent Events
Financial statements are approved after considering 'Adjusting Event' and Non-adjusting event'. Adjustments to assets and
liabilities are made for events occurring after the Balance Sheet dele that provide additional information mater ially affecting the
determination of the amounts relating to conditions existing at the Balance Sheet date or because of statutory requirements or
because of their special nature. For non-adjusting events, the Company may provide a disclosure in the financial statement
considering the nature of the transaction
4.1 Changes in accounting policies and disclosures New and amended standards effective in current
year that begins on or after 1 April 2024
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31.2025. MCA has notified Ind AS -
117 Insurance Contracts and amendments to Ind AS 116 — Leases, relating to sale and leaseback transactions, applicable to the
Company vv.e.f. April 1,2024. Tits Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have any significant impact in its financial statements.
4.2 Standards issued but not yet effective up to the date of Financial Statements:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies llndian
Accounting Standards) Rules as issued from time to time. MCA has notified amendments to the existing standards IND AS 21:
The Effects of changes in Foreign Excoange rates applicable to the Company w.e.f, April 01. 2025 to address concerns about
currency exchangeability and provide guidance on estimating spot exchange rates when a currency is not exchangeable. There
is no significant impact on the Company in the current year.
18.1 Term Loans:
Term Loans are secured by way of deposit of the title deeds in respect of immovable properties of the Company including
Land & Building situated at Survey No. 191/2/4 Masat ViUaae, Meghwad Road. U.T. of Dadra & Nagar Haveli and Daman &
Diu, Silvassa - 396230, Sun'ey No. 99/2/1 & 9. Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village. U.T of
Dadra & Nagar Haveli and Daman & Diu, Silvassa - 396230, Survey No. 87, Madhuban Industrial Estate. Madhuban Dam
Road. Rakholi Village. U.T. of Dadra & Nagar Haveli and Daman & Diu, Silvassa - 396230 and Survey No. 28A & 42, Masat
Industrial Estate. U.T. of Dadra & Nagar Haveli and Daman & Diu. Silvassa - 396230. First pari passu charge on entire fixed
assets of the company, present and future and by way of Second pari passu charge on entire current assets of the company,
present and future.
18.2 Other Loans and Advances are secureo by way of hypothecation of Cars and Transport Vehicles purchased under Hire
Purchase Scheme.
18.3 There is no default n repayment of principal loan or interest thereon.
NOTE 38: The entire operation of the Company relate to only one segment viz. Polymer based multiple products. Hence, as per
the Management approach under Ind AS - 108, the company has a single operating segment. Revenue is evenly
spread across various customers and rot concentrated at major customers. No single customer/ customer group
contributes 10% or more of the total revenue of the Company.
NOTE 39: During the current year, a Wholly-Owned Foreign Subsidiary Company, of Emmbi Industries Limited, in the name of
'ZASTIAN PTE. LTD.'('Zastian') has been incorporated in Singapore. Subsidiary. Zastian PTE Limited {Singapore], has
acquired 100% sharehold ng of Zastian Europe GmbH (ZEG), Germany making ZEG a step down subsidiary of Emmbi
Industries Limited.
B. Risk Exposure
Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are
detailed below.
Life expectancy:
This is particularly significant where inflationary increases result in higher sensitivity to changes in l/fe expectancy.
Future salary increase 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 orovided at management's discretion may lead to uncertainties in estimating
this increasing risk.
Asset-Liability mismatch risk:
Risk arises if there is a mismatch in the duration of the assets relative to ihe liabilities. By matching duration with the
defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate
movements. The Company ensures that the investment positions are managed within an asset-liability matching
(AI.MI framework that has been developed to achieve long-term investments that are in line with the obbgations
under the employee benefft plans.
Capital Management
The Company's objectives when managing capital are to:
• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders of the Company. The primary objective o! the Company's capital management
is to maximise tne shareholders value. The Company manages its capital structure and makes adjustments in light of changes
in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders. The Capital structure of the Company is as follows:
The company has been identifying appropriate CSR projects and programs in the villages around Silvasss. Several long term
orojects have been identified and are under implementation and would take time for completion.
Operating Lease:
|i| As a lessee: The Company's significant leasing agreements are in respect o* operating leases for premises (residential and
office!, software. These leasing agreements range between 11 months anc 99 months, which include both cancellable and
non-cancellable leases and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals
of Rs. 3,47.32,654/- (Previous Year Rs. 2,76,06.523/-) are charged to the Statement of Profit and Loss.
The total future minimum lease rentals payable for non-canceliabla lease at the Balance Sheet dates are as under
Financial risk management
The management of the Company has implemented a risk management system that is monitored by the Board of Directors. The
general conditions for compliance with the requirements for proper and future-oriented risk management within the
Company are set out in the risk management principles. These principles aim at encouraging all members of staff to
responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on nsk
management specify risk management processes, compulsory limitations, and the application of financial instruments. The
nsk management system aims at identifying, analyzing, managing, controlling and communicating risks promptly throughout
the Company. Risk management reporting is a continuous process and part of regular Group reporting In addition, our
Corporate Function Internal Auditing regularly checks whether Company complies with risk management system
requirements.
The Company is exposed lo credit, liquidity and market risks [foreign currency risk and price nsk] during the course of ordinary
activities. The aim of risk management is to limit the nsks arising from operating activities and associated financing
requirements by applying selected derivative and non-derivative hedging Ýnstruments
Credit risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables! and from its financing activities,
including deposits with banks and other financial instruments. The balances with banks, loans given to employees, security
deposits are subject to low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of
default is negligible or nil Hence, no provision has been created for expected credit loss for credit risk arising from these
financial assets.
Trade receivables
Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage
this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current
economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.
For the year ended 31rt March, 2025
Export related trade receivables are fully secured under the Export Credit Guarantee Corporation Scheme and therefore the
Company is not exposed to significant credit risk.
The provision for expected credit toss is recognised on the basis of life-time expected credit losses (simplified approach). An
expected loss rate is calculated at each year-end, baseo on combination of rate of default and rate of delay The Company
considers the race of default and delay.
The provision for expected credit toss is recognised on the basis of life-time expected credit losses (simplified approach). An
expected loss rale is calculated at each year-end. based on combination of rate of default and rate of delay. The Company
considers the rate of default and delay.
Liquidity risk
Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash
or cash equivalents. Managing liquidity risk, and therefore allocating resources are some of the central tasks of the Company's
management. In order to be able to ensure the Company's solvency and financial flexibility at all times, credit limits and cash
and cash equivalents are reserved on the basis of perennial financial planning.
Market risk
Market risk is the risk that fair values or future cash flows of non-derivative or derivative financial instruments will fluctuate
due to changes in risk factors. Among market risks relevant to the Company are foreign currency risk and price risks.
Associated with these risks are fluctuations in income, equity and cash flow. The objective of risk management is to eliminate
or limit emerging risks by taking appropriate precautions, especially by applying derivatives. The application of derivatives is
subject to strict controls set up on the basis of guidelines as part of regular reporting. Various measures are used to mitigate
or eliminate the risk of fluctuations in the fair value of future cash flows from financial instruments due to market changes.
These mainly include foreign currency forward contracts with banks. The use of derivative financial instruments is extensively
monitored, with checks being carried out on the oasis of policies in the framework of regular recoiling.
Foreign currency risk
The international nature of the Company’s business activities generates numerous cash flows in different currencies especially
in USD. GBP & EURO. To contain the risks of numerous payment flows in different currencies, in particular USD. GBP &
EURO, the Company follows group wise policies for foreign currency management.
The Company does not have any material exposure to foreign currency at the balance sheet date.
NOTH A3: OTHER STATUTORY INFORMATION FOR THE FINANCIAL YEAR 2024-25
i| The Company does not hold any benarm property and no proceeding has been initiated or pending against the Comoany
for holding any benami property.
ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year or previous year.
iii) The Company has not advanced or loaned or invested funds to any other personisl or entityliesj, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (ultimate beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
ivl Tne Company has not received any fund from any personls) or entitylies], including foreign entities (funding party! with the
understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the funding party (ultimate beneficiariesi or
(bl provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
v) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act. 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act. 1961k
vil The Company has complied with the number of layers prescribed under clause {87) of section 2 of the Act read with the
Companies (Restriction on number ol Layers) Rules. 2017.
vii) The Company is not declared wilful defaulter by any bank or financial institution or tender during the year.
viii) Tne Company does not have any charges or satisfaction 'which is yet to be registered with ROC beyond the
Statutory period.
ix) The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was obtained.
xj Tne title deeds of alt the immovable properties, (other than immovable properties where the Company is the lessee and
the lease agreements are duly executed in ravour of the Company) disclosed in the financial statements included in
property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet
date,
xi) Tne Company does not have any transactions with companies which are struck oft
xjji There is no scheme of amalgamation and arrangement under Sections 23C to 232 and other applicable provisions of the
Companies Act, 2013 and the rules thereunder during the current year
Tne Company has not granted any loans or advances to promoters, directors, KMPs and the related parties las defined
under Companies Act. 2Ci3), ether severally or jointly with any other pe--son, except for the parties mentioned under Note 7
that are: (al Repayable on demand (b) without specifying any terms or period of repayment.
xiv) Tne Company has not revalued its property, plant and equipment or intangible assets or both or investment property during
the current or previous year.
As per our report of even date For and On behalf of the Board.
For R. Daliya & Associates For EMMBI INDUSTRIES LIMITED
Chartered Accountants
FRN : 102060W
Makrand Appalwar
[Managing Director)
DIN: 00171950
R S. Daliya (Partner)
Membership No. 043703 Rinku Appalwar
Place: Mumbai. Rajesh Solanki ICFO & Executive Director)
Date : 24th May. 2025 Company Secretary DIN 100171976
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