X PROVISION AND CONTIGENCIES
A Provision is recognized when the company
has a present legal or constructive obligation
as a result of past event and it is probable
that an outflow of resources will be required
to settle the obligation, in respect of which
reliable estimate can be made. Provisions
(including retirement benefits) are not
discounted to its present value and are
determined based on best estimate required
to settle the obligation at the balance sheet
date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current
best estimate. Contingent liabilities are not
recognized in profit & loss account but are
disclosed in Notes to the Accounts.
XI BORROWING COST
Borrowing Cost that are attributable to the
acquisition or construction of qualifying
assets are capitalised as part of the cost of
such assets. A Qualifying asset is one that
necessarily takes substantial period of time
to get ready for intended use. All other
borrowing costs are charged to revenue.
XII CASH FLOW STATEMENT
Cash flows are reported using the
indirect method, whereby net profit
before tax is adjusted for the effects of
transactions of non-cash nature and any
deferrals or accruals of past of future cash
receipts and payments. The cash flows
from operating, investing and financing
activities of the Company are segregated.
XIII RETIREMENT AND OTHER EMPLOYEE
BENEFITS
1. Gratuity
The Company provides for the gratuity of defined
benefit retirement plan covering qualifying
employees. The plan provides for lump sum
payments to employees upon death while
employment or on separation from employment
after serving for the stipulated period mentioned
under The Payment of Gratuity Act, 1972
Risks associated with Defined Benefit Obligation
A. Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then
the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit,
the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed
salary growth and discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
then the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.
B. Investment Risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may
not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent
of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are
significant changes in the discount rate during the inter- valuation period.
C. Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits.
If some of such employees resign/retire from the company there can be strain on the cashflows.
D. Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects
the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the
plan benefits & vice versa. This assumption depends on the yields on the corporate/ government bonds and hence
the valuation of liability is exposed to fluctuations in the yields as at the valuation date.
E. Legislative Risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay
higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the
same will have to be recognized immediately in the year when any such amendment is effective.
Company’s CSR Policy
1 A brief outline of the Company’s CSR Policy
Indian Emulsifiers Limited firmly believes that it has a commitment to all its stakeholders, customers, employees
and the community in which it operates and it can fulfill this commitment only by sustainable and inclusive
growth. The Company aims to improve quality of life through its positive intervention in the community. The
Company's key CSR initiatives are undertaken with a long term view and are sustainable having a long term
benefits to the society at large which do not results in business benefits.
2 Composition of CSR Committee
a) Vaishali Dipen Tarsariya- Chairman
b) Yash Tikekar- Member
c) - Rajaram Gordhanlal Agarwal- Member
3 Average Net Profit of the Company for the last three financial years
Average Net Profit of the Company for the last three financial years is Rs.5,19,68,566.
4 Prescribed CSR expenditure (2% of the amount as in ite no 3 above)
The Company was required to spend Rs.10,39,371 based on the average net profit mentioned in item
no 3 above.
5 Details of CSR spent during the financial year
i. Total amount spent by the Company for the financial year is Rs.7,00,000.
ii. Amount unspent: Out of the prescribed CSR expenditure of Rs.10.39 lacs for FY 2024-25, Rs. 7 lacs was
utilised due to limited availability of the sustainable programs of projects which meet the vision of the
Company. The company has been continuously and persistently exploring novel opportunities and possibilities
in the form of sustainanble programs or projects for CSR activities to create larger social impact and positive
changes in the lives of the community.
NOTE 3(7) : ADDITIONAL REGULATORY INFORMATION
With Regard to the Additional Regulatory Information as mandated under the Companies Act the following
disclosures are made :
The funds borrowed by the Company from Banks and financial institutions have been used for the specific
purpose for which they were raised.
b The Company does not have any Benami property, and no proceeding has been initiated or is pending against
the Company for holding any Benami property.
All the immovable properties (other than properties where the Company is the lessee and the lease agreements
c are duly executed in favour of the lessee) title deeds are held in the name of the company and Company is the
sole owner of these immovable properties
d The Company has not revalued its Property, Plant and Equipments during the year.
The Company has not granted any loans or advances to promoters, directors, KMPs or Related Parties either
e
severally or jointly.
f There is capital asset in progress as at the date of the balance sheet and whose ageing schedule is as follows-
The Company has not been declared wilful defaulter by any bank or financial institution or government or any
g government authority.
h The Company does not have any transactions with companies struck off.
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
j The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
The Company does not have any such transaction which is not recorded in the books of accounts that has
k 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, 1961)
l The Company has not issued any such type of security for a specific purpose.
m The Company has not proposed or declare dividend during the year.
For Dave and Dave FOR INDIAN EMULSFIERS LIMITED
Chartered Accountants
FRN: 102163W
Sd/- Yash Tikekar Abhay Tikekar
CA Lilashankar Dave Director Director
Partner DIN: 02206485 DIN: 10425123
Membership No. 042889
Mumbai, 16th May 2025 Mandeep Pandey Ramraj Singh Thakur
UDIN:25042889BMLEFV6863 CFO Company Secretary
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