Notes to Accounts of EMA India Ltd.

Mar 31, 2024

(m) PROVISION FOR CURRENT & DEFERRED TAX

Provision for current tax is made after taking into consideration benefits admissible under the
provisions of the Income Tax Act, 1961 and based on the expected outcome of assessments /
appeals in Company''s cases. Deferred tax resulting from "timing difference" between book and
taxable profit is accounted for using the tax rates & laws that have been enacted or substantively
enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward
only to the extent that there is a reasonable certainty that the assets will be realized in future. The
effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.

(n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized only when there is a present obligation as a result of past events and
when a reliable estimate of the amount of the obligation can be made. Contingent liabilities (if
material) are disclosed by way of Notes to Accounts. Contingent Assets are not recognized in the
financial statements since this may result in the recognition of income that may never be realized.

³⁶ Details of Benami Property held

37 Where the Company has borrowings from banks or
financial institutions on the basis of current assets

(a) whether quarterly returns or statements of current
assets filed by the Company with banks or financial
institutions are in agreement with the books of accounts.

(b) if not, summary of reconciliation and reasons of
material discrepancies, if any to be adequately disclosed

³⁸ Wilful Defaulter

a. Date of declaration as wilful defaulter,

b. Details of defaults (amount and nature of defaults),

³⁹ Relationship with Struck off Companies

Where the company has any transactions with companies struck
off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956, the Company shall disclose the
following details:-

42 Compliance with approved Scheme(s) of
Arrangements

Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of
Arrangements have been accounted for in the books of account of the Company ‘in accordance with the
Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained
Not Applicable

Utilisation of

43 Borrowed funds
and share

premium: Not Applicable

44 Having no business in hand at present as well as continuous losses in the company coupled with negative
net worth , the management has determined that the Company has ceased to be a going concern as on
31.12.2023. Accordingly,all assets below market value have been impaired to keep on realisable value as
determined by the management..Current year losses shall be met out of unsecured loans given by the
Directors .

45 Previous year figures have been regrouped / reclassified to conform to this year''s classification.

As per our Report of even date attached. For and on behalf of the Board

For B. C. Jain & CO.

Chartered Accountants (FRN: 001099C)

Sd/- Sd/- Sd/-

CA Shyam Ji Gupta Ranjana Bhargava Rakshita Bhargava

Partner Membership No. - 416155 (DIN: 00234421) (DIN: 00234224)

Add:28-Chandra Add:28-Chandra

D _t «0/05/2024 Vihar, Lakhanpur Vihar, Lakhanpur

^10/05/2024 (MIG) Nawab Ganj (MIG) Nawab Ganj

Kanpur 208002 Kanpur 208002

Sd/-

Sd/- Mahabir Prasad Sd/-

Namita Sabharwal Sharma Krishna Das Gupta

(Company Secretary) (DIN: 06491244) (DIN: 00374379)

Add: 50/68 Add: 104, Ratan

(M. no. A35411) Naughara Bhawan

7/108A, Swaroop

Add: 117/H-2/107, Kanpur - 208001 Nagar

Pandu Nagar, Kanpur Kanpur 208002

---

Mar 31, 2019

1. The Company is engaged in one segment only i.e. Machine Tools for Automotive and other classified industries which are governed by the same set of risk and returns. The said treatment is in accordance with the guiding principle enunciated in the AS-17 on Segment Reporting.

2. Previous year figures have been regrouped / reclassified to conform to this year''s classification.

---

Mar 31, 2014

1 Change in the Share Capital NIL NIL

Change In Shareholders holding more than 5% NIL NIL

2 Equity shares allotted as fully paid up pursuant to a contract without payment being received in cash for the period of five years immediately proceeding the date of Balance Sheet NIL NIL

3 Equity shares allotted as fully paid up by Way of bonus shares by capitalization of General Reserve for the period of five years immediately proceeding the date of Balance Sheet NIL NIL

3.1 Cash Credit Advances from Bank of Baroda Payable on demand are secured by way of hypothecation of whole of the Company''s present and future stocks of raw materials, goods-in-process, finished goods, consumable stores & spares & book debts and further secured by way of mortgage by deposit of the title deeds in respect of Company''s immovable property situated at C-37, Panki Industrial Area, PO Udyog Nagar, Kanpur. Overdraft from State Bank of India is secured against pledge of fixed deposit of the company.

4. In case of winding up petition filed by the Company before Hon''ble High Court of Allahabad for recovery of Inter Corporate Deposit against M/sTrackparts of India Ltd., the Company is following up the case for balance dues of Rs. 55.50 lacs. Full provision in respect of above was made in financial year 2003-04. Another case under Negotiable Instruments Act is also pending in local court at Kanpur.

It is not practical to furnish detailed item wise information of raw materials & components consumed in view of the large number of items which differ in size & nature, each being less than ten percent in value of the total value,

5 CONTINGENT LIABILITIES & COMMITMENTS

(i) Counter guarantees given by the Company in favour of Bank of Baroda against guarantees given by them on behalf of Company Rs. NIL (Previous year Rs. 1371300/-). The bank has held Rs. NIL (Previous year Rs.592086/-) as margin money against these guarantees in the form of Fixed Deposit.

(ii) Claims against the Company for demands raised by ESI Corporation till 2001 not acknowledged as debts - Rs. 571813/- (Previous year Rs. 571813/-) out of which Rs. 460109/- (Previous year Rs. 460109/-) has been deposited under protest.

Further the company has also disputed the calculation of demand raised by the department. Since the ESI Corporation has not acknowledged the basis of their demand, the difference has not been deposited.

(iii) Claim against the company for various labour cases filed, not acknowledged as debt since the amount is not ascertainable.

6 EMPLOYEE BENEFITS - As per Accounting Standard-15 (Revised 2005)

(i) Gratuity Fund - Gratuity is administered through Group Gratuity Scheme with LIC and annual premium thereon is paid and accounted for as and when demanded based on actuarial valuation made by LIC as required in Accounting Standard -15 (revised 2005).

(ii) Leave Encashment - Provision for leave encashment has been made by the management.

(iii) Defined Contribution Plans - During the financial year ended 31.03.2014, the Company has recognized the following amounts in the Profit & loss account for employee benefits.

7 The Company is engaged in one segment only i.e. Machine Tools for Automotive and other classified industries which are governed by the same set of risk and returns. The said treatment is in accordance with the guiding principle enunciated in the AS-17 on Segment Reporting.

8 Previous year figures have been regrouped / reclassified to conform to this year''s classification.

---

Mar 31, 2013

1. EMPLOYEE BENEFITS

As per Accounting Standard-15 (Revised 2005)

(i) Gratuity Fund - Gratuity is administered through Group Gratuity Scheme with LIC and annual premium thereon is paid and accounted for as and when demanded based on actuarial valuation made by LIC as required in Accounting Standard - 15 (revised 2005).

2. RELATED PARTY DISCLOSURES

As required under AS-18 issued by Institute of Chartered Accountants of India

(i) Key Management Personnel & their relatives

(a) Mr. P.K. Bhargava, Chairman & Managing Director

(b) Mrs. Ranjana Bhargava, Whole Time Director

(c) Ms. Rakshita Bhargava, Director

3. The Company is engaged in one segment only i.e. Machine Tools for Automotive and other classified industries which are governed by the same set of risk and returns. The said treatment is in accordance with the guiding principle enunciated in the AS-17 on Segment Reporting.

4. Previous year figures have been regrouped / reclassified to conform to this year''s classification.

---

Mar 31, 2012

1. CONTINGENT LIABILITIES (i) Counter guarantees given by the Company in favour of its Bank against guarantees given by them on behalf of Company Rs. 23,23,108/- (Previous year Rs.31,02,648/-). The bank has held Rs. 5,50,737/-(Previous year Rs.5,16,192/-) as margin money against these guarantees in the form of Fixed Deposit. (ii) Claims against the Company for demands raised by ESI Corporation till 2001 not acknowledged as debts - Rs. 5,71,813/- (Previous year Rs.5,71,813/-) out of which Rs. 4,60,109/- (Previous year Rs. 4,60,109/-) has been deposited under protest. Further the company has also disputed the calculation of demand raised by the department. Since the ESI Corporation has not acknowledged the basis of their demand, the difference has not been deposited. (iii) Claim against the company for various labour cases filed, not acknowledged as debt since the amount is not ascertainable. 2. EMPLOYEE BENEFITS

As per Accounting Standard-15(Revised 2005) (A) Gratuity Fund - Gratuity is administered through Group Gratuity Scheme with LIC and annual premium thereon is paid and accounted for as and when demanded based on actuarial valuation made by LIC as required in Accounting Standard-15 (revised 2005). As against total demand raised by LIC, the Company had charged Rs. 33,84,444/- (including current service cost Rs.5,69,013/-) to the revenue during the current Financial year. (B) Leave Encashment - Provision for leave encashment amounting to Rs. 17,98,171/- has been made by the management. 3. Related Party Disclosures As required under AS-18 issued by Institute of Chartered Accountants of India :- (i) Key Management Personnel & Relatives (a) Mr. P.K. Bhargava Chairman & Managing Director (b) Mrs. Ranjana Bhargava Whole Time Director (c) Ms. Rakshita Bhargava Director (ii) Associate Companies (a) EMA Megatherm Induction Equipments Pvt. Ltd. 4. The Company is engaged in one segment only i.e. Machine Tools for Automotive and other classified industries which are governed by the same set of risk and returns. The said treatment is in accordance with the guiding principle enunciated in the AS-17 on Segment Reporting. 5. Till the year ended 31.03.2011, the Company was using pre-revised Schedule VI of the Companies Act, 1956 for preparation & Presentation of its financial statements. During the Current year ended 31.03.2012, the revised Schedule VI as notified under the Companies Act, 1956 has become applicable to the Company. Previous year figures have been regrouped / reclassified to conform to this year's classification.

---

Mar 31, 2011

1. CONTINGENT LIABILITIES

(i) Counter guarantees given by the Company in favour of its Bankers against guarantees given by them on behalf of Company Rs. 3102648/- (Previous year Rs. 2342265/-). The bank has held Rs. 516192/- (Previous year Rs.1104381/-) as margin money against these guarantees in the form of Fixed Deposit.

(ii) Claims against the Company for demands raised by ESI Corporation till 2001 not acknowledged as debts - Rs. 571813/- (Previous year Rs. 571813/-) out of which Rs. 460109/- (Previous year Rs. 460109/-) has been deposited under protest. Further the company has also disputed the calculation of demand raised by the department. Since the ESI Corporation has not acknowledged the basis of their demand, the difference has not been deposited.

(iii) Claim against the company for various labour cases filed, not acknowledged as debt since the amount is not ascertainable.

2. SECURITY OF CASH CREDIT ADVANCES :

Cash Credit Advances from Bank of Baroda are secured by way of hypothecation of whole of the Company's present and future stocks of raw materials, goods-in-process, finished goods, consumable stores & spares & book debts and further secured by way of mortgage by deposit of the title deeds in respect of Company's immovable property situated at C-37, Panki Industrial Area, P.O. Udyog Nagar, Kanpur.

3. TAX ASSESSMENT

Advance Income tax as shown in Schedule 'D' is net of provisions. The Sales Tax and Income Tax Assessments of the Company have been completed upto Assessment year 2007-08 & 2008-09 respectively. Any tax liability on cases pending under assessment/ appeal will be met as and when the same arises.

4. In case of winding up petition filed by the Company before Hon'ble High Court of Allahabad for recovery of Inter Corporate Deposit against M/s Trackparts of India Ltd., the Company is following up the case for balance dues of Rs. 55.50 lacs. Full provision in respect of above was made in financial year 2003-04. Another case under Negotiable Instruments Act is also pending in local court at Kanpur.

5. EMPLOYEE BENEFITS - As per Accounting Standard-15(Revised 2005)

(A) Gratuity Fund - Gratuity is administered through Group Gratuity Scheme with LIC and annual premium thereon is paid and accounted for as and when demanded based on actuarial valuation made by LIC as required in Accounting Standard-15 (revised 2005). As against total demand raised by LIC, the Company had paid/charged Rs. 4,67,265/- towards current service cost and incremental gratuity liability towards past services due to enhancement of limits amounting to Rs. 24,33,818/- is not provided for and shall be met as and when arise.

(B) Leave Encashment - Provision for leave encashment amounting to Rs. 15,51,826/- has been made by the management.

6. Related Party Disclosures

As required under AS-18 issued by Institute of Chartered Accountants of India :-

(i) Key Management Personnel & Relatives

(a) Mr. P.K. Bhargava Chairman & Managing Director

(b) Mrs. Ranjana Bhargava Whole Time Director

(c) Ms. Rakshita Bhargava Director

(ii) Associate Companies

(a) M/s DiaTech Tools India Pvt. Ltd.

(b) EMA Megatherm Induction Equipments Pvt. Ltd.

7. In the opinion of the Board, the Current assets, loans and advances are realizable at a value which is at least equal to the amount at which these are stated in the ordinary course of business.

8. The Company is engaged in one segment only i.e. Machine Tools for Automotive and other classified industries which are governed by the same set of risk and returns. The said treatment is in accordance with the guiding principle enunciated in the AS-17 on Segment Reporting.

9. Previous year figures have been regrouped wherever necessary.

10. Schedules A to H form an integral part of the Balance Sheet and Profit & Loss Account.

---

Mar 31, 2010

1. CONTINGENT LIABILITIES

(i) Counter guarantees given by the Company in favour of its Bankers against guarantees given by them on behalf of Company Rs. 2342265/- (Previous year Rs. 2258677/-). The bank has held Rs. 1104381/- (Previous year Rs. 1037510/-) as margin money against these guarantees in the form of Fixed Deposit.

(ii) Claims against the Company for demands raised by ESI Corporation till 2001 not acknowledged as debts - Rs. 571813/- (Previous year Rs. 571813/-) out of which Rs. 460109/- (Previous year Rs. 460109/-) has been deposited under protest. Further the company has also disputed the calculation of demand raised by the department. Since the ESI Corporation has not acknowledged the basis of their demand, the difference has not been deposited.

(iii) Claim against the company for demand raised by Central Excise department Rs. 519252/- (Previous year Rs. 259626/-) (deposited under protest) not acknowledged as debts (matter sub-judice).

(iv) Claim against the company for various labour cases filed, not acknowledged as debt since the amount is not ascertainable.

2. SECURITY OF CASH CREDIT ADVANCES :

Cash Credit Advances from Bank of Baroda are secured by way of hypothecation of whole of the Companys present and future stocks of raw materials, goods-in-process, finished goods, consumable stores & spares & book debts and further secured by way of mortgage by deposit of the title deeds in respect of Companys immovable property situated at C-37, Panki Industrial Area, P.O. Udyog Nagar, Kanpur.

3. Advance Income tax as shown in Schedule D is net of provisions. The Sales Tax and Income Tax Assessments of the Company have been completed upto Assessment year 2007-08. Any tax liability on cases pending under assessment/ appeal will be met as and when the same arises.

* Previous year Sales includes Rs. 1545860/- being value of one machine used for captive consumption. There is no opening or closing stock of goods produced.

* It is not practicable to furnish detailed item wise information of raw materials & components consumed in view of the large number of items which differ in size & nature, each being less than ten percent in value of the total value.

4. In case of winding up petition filed by the Company before Honble High Court of Allahabad for recovery of Inter Corporate Deposit against M/s Trackparts of India Ltd., the Company is following up the case for balance dues of Rs. 55.50 lacs. Full provision in respect of above was made in financial year 2003-04. Another case under Negotiable Instruments Act is also pending in local court at Kanpur.

5. EMPLOYEE BENEFITS - As per Accounting Standard- 15(Revised 2005)

(A) Gratuity Fund - Gratuity is administered through Group Gratuity Scheme with LIC and annual premium thereon is paid and accounted for as and when demanded. Actuarial valuation is made by LIC as required in Accounting Standard -15 (revised 2005) on Project Unit Credit Method. The Actuarial Assumptions are :-

* Mortality Rate - LIC (1994-96) ultimate

* Withdrawal Rate - 1% to 3% depending on Age

* Discount Rate - 8%p.a.

* Salary Escalation - 4%

The Company has provided Additional Contribution towards short fall in existing Gratuity fund as demanded by LIC under Group Gratuity Scheme as Defined Contribution Plan from the opening General Reserve in terms of AS-15. The present value of Past Service Benefit as per LIC was Rs. 7083207/-.

(B) Leave Encashment - Provision for leave encashment amounting to Rs. 1335804/- has been made by the management.

6. Related Party Disclosures

As required under AS-18 issued by Institute of Chartered Accountants of India :-

(i) Key Management Personnel - Mr. P.K. Bhargava Chairman & Managing Director Mrs. Ranjana Bhargava Whole Time Director

(ii) Details of remuneration to Managing Director & Whole Time Director are given at Note No. 16 above and Sitting Fees to other Directors - Rs. 62000/- (Previous year Rs. 40000/-).

(iii) Transactions carried out with the related party - DiaTech Tools India Pvt. Ltd., Kanpur, during the year in the ordinary course of business :-

7. In the opinion of the Board, the Current assets, loans and advances are realizable at a value which is at least equal to the amount at which these are stated in the ordinary course of business.

8. The Company is engaged in one segment only i.e. Machine Tools for Automotive and other classified industries which are governed by the same set of risk and returns. The said treatment is in accordance with the guiding principle enunciated in the AS-17 on Segment Reporting.

9. Previous year figures have been regrouped wherever necessary.

10. Schedules A to H form an integral part of the Balance Sheet and Profit & Loss Account.