Notes to Accounts of Emergent Industrial Solutions Ltd.

Mar 31, 2025

29.9 Provisions, Contingent Liability and Contingent Assets

Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales
Tax, Income Tax Excise etc.) Pending in appeal / court for which no reliable estimate can be made and or
involves uncertainty of the outcome of the amount of the obligation or which are remotely poised for
crystallization are not provided for in accounts but disclosed in notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliable
estimation can be made of the amount of obligation, is recognized in accounts in

terms of discounted value, if the time value of money is material using a current pre-tax rate that reflects
the risk specific to the liability.

No contingent asset is recognized but disclosed by way of notes to accounts.

29.10 Foreign Currency Translation

The company''s financial statements are presented in INR in Lacs, which is also the company''s functional
currency.

a) Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date of
transactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-a-vis functional
currency between the date of transaction and that of payment is charged to Statement of Profit & Loss.

b) Monetary Assets in foreign currencies are translated into functional currency at the exchange rate ruling
at the Reporting Date and the resultant gain or loss, is accounted for in the Statement of Profit & Loss.

c) Non-Monetary items which are carried at historical cost denominated in a foreign currency are
reported using the exchange rate at the date of the transaction.

d) Impact of exchange fluctuation is separately disclosed in notes to accounts.

29.11 Earnings per Share

Basic Earnings per share is calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributed to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.

29.12 Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifying
asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use
or sale.

Borrowing cost consists of interest and other costs that an entity incurs in connection with the borrowing of
funds.

Borrowing costs also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its
intended use or sale. All other borrowing cost are recognized as expense in the period in which they are
incurred.

29.13 Cash and Cash Equivalents

For the purpose of presentation in the cash flows statement, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

29.14 Property, Plant and Equipment
Cost:-

Property, Plant & Equipment held for use in the production or supply of goods or services, or for
administration purposes, are stated in the balance sheet at cost(net of duty/tax credit availed) less
accumulated depreciation and accumulated impairment losses. Cost includes professional fees and, for
qualifying assets, borrowing costs capitalized in accordance with the company''s accounting policy. Such
properties are classified to the appropriate categories of property, plant and equipment when completed and
ready for indented use. Depreciation of these assets, on the same basis as other property assets, commence
when the assets are ready for their intended use.

Depreciation/Amortization:

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful
lives, using the straight-line method. The estimated useful lives, residual values and depreciation method
are reviewed at the end of each reporting period with the effect of any changes in estimate accounted for on
a prospective basis.

29.15 Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are
amortized over their respective individual estimated useful lives on a straight-line basis, from the date that
they are available for use. The estimated useful life of an identifiable intangible asset is based on a number
of factors including the effects of obsolescence, demand, competition, and other economic factors (such as
the stability of the industry, and known technological advances), and the level of maintenance expenditures
required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are
reviewed periodically including at each financial year end.

29.16 Impairment

(i) Impairment of Financial Assets

The company assesses impairment based on expected credit losses (ECL) model at an amount equal to: -

• 12 months expected credit losses, or

• Lifetime expected credit losses

Depending upon whether there has been a significant increase in credit risk since initial recognition.

However, for trade receivables, the company does not rack the changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

(ii) Impairment of Non-Financial Assets

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are
largely independent of those from other assets. In such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and
Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss if there has been a
change in the estimates used to determine the recoverable amount. The carrying amount of the asset is
increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount
that would have been determined (net of any accumulated amortization or depreciation) had no impairment
loss been recognized for the asset in prior years

29.17 Current versus Non-Current Classification

The company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
An Asset is current when it is:

a) Expected to be realized or intended to be sold or consumed in the normal operating cycle.

b) Held primarily for the purpose of trading.

c) Expected to be realized within twelve months after the reporting period, or

d) Cash or Cash Equivalents unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current

A Liability is current when it is:

a) Expected to be settled in the normal operating cycle.

b) Held primarily for the purpose of trading.

c) Expected to be realised within twelve months after the reporting period, or

d) There is no conditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

An operating cycle is the time between the acquisition of assets for processing and their realization in cash
or cash equivalents. The Company has identified twelve months as its operating cycle.

29.18 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.

29.19 Inventories

Inventories are valued at the lower of Cost and Net Realizable Value. The Cost for this purpose is determined
as follows:

• Traded goods (traded): First In First Out method (FIFO).

Cost includes the necessary cost incurred in bringing inventory to its present location and condition necessary
for use.

Net Realizable Value is the estimated selling price including applicable subsidy in the ordinary course of
business, less the estimated costs of completion and the estimated costs necessary to make the sale.

29.20 Leases

The Company has applied Ind AS 116 from 1 April 2019.

Leases under Ind AS 116

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is,
or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.

(i) /4s lessee

The Company''s lease asset classes primarily consist of leases for buildings. The Company, at the inception of
a contract, assesses whether the contract is a lease or not. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a time in exchange for a consideration. This policy
has been applied to contracts existing and entered on or after 1 April 2019.

The Company elected to use the following practical expedients on initial application:

1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment
with a similar end date.

2. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12
months of lease term on the date of initial application.

3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial
application.

4. Applied the practical expedient to grandfather the assessment of which transactions are leases.
Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS
17.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying
asset or the site on which it is located, less any lease incentives received.

The right-of-use assets is subsequently measured 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
is depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life of right-of-use asset. The estimated useful lives of right-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 lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the Company''s incremental borrowing rate. The lease liability is
subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any
reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company
recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the
right-of-use asset and statement of profit and loss depending upon the nature of modification. 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 re-measurement in statement of
profit and loss.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that
have a lease term of 12 months or less and leases for which the underlying asset is of low value. The Company
recognises the lease payments associated with these leases as an expense in the Statement of Profit or Loss
over the lease term.

(ii) As lessor

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 in 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.

The Company''s activities are exposed to a variety of financial risks from its operations. The key financial
risks include market risk, credit risk and liquidity risk. The company''s overall risk management policy seeks
to minimize potential adverse effects on company''s financial performance.

(i) Market Risk:

Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate because of
change in market prices. Market risk comprises mainly three types of risk: interest rate, currency risk and
other price risk such as equity price risk and commodity price risk.

(a) Foreign Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company is exposed to foreign exchange risk through its
operations in international trades. The results of the Company''s operations can be affected as the rupee
appreciates/depreciates against these currencies. The Company has developed and enacted a risk
management strategy to mitigate the risk of changes in exchange rates on foreign currency exposures.

(b) Interest Rate Risk:

Interest rate risk is the risk that the fair value of future cash flow of financial instruments will fluctuate
because of change in market interest rates. The Company has not taken any loan from bank & financial
instructions; hence there is not any interest rate risk.

(ii) Other Price Risk:

• Equity Price Risk:

The Company does not have any equity investment except investment in Subsidiary Company. The
Subsidiary company investment to be shown at Carrying value as at the date of transition to IND AS,
measured as per previous GAAP are treated as their deemed costs as at the date of transition.

• Commodity Price Risk:

The operating activities of the Company are mainly involves trading of commodities such as coal, coke,
ores, metals etc. Almost all the purchases are covered by corresponding sale contracts thus the chances
of price risk are negligible. The Company has also developed and enacted a risk management strategy
regarding commodity price risk and its mitigation.

(iii) Credit Risk:

Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial
loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, Inter
Corporate deposit, derivative financial instruments, other balances with banks, loans and other receivables.

Credit risk arising from investment derivative financial instruments and other balances with banks is limited
and there is no collateral held against these because the counter parties are banks and recognised financial
institutions with high credit ratings.

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance
on the following:

i. Trade receivables

ii. Balance with banks & fixed Deposits

iii. Financial assets measured at amortized cost (other than trade receivables)

iv. Others

Trade Receivables:

Customer credit risk is managed through the company''s established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed based on the security held in
its account. Outstanding customer receivables are regularly monitored. At the year end, the company have
Rs 1145.94 Lacs (Previous Year Rs. 1495.17 Lacs) outstanding trade receivable as per Note 7.

Balance & fixed Deposits with banks:

Credit Risk from balances & Fixed Deposits with banks is managed by the Company''s Finance Department
in accordance with the company''s policy. Investments of surplus funds are made only with banks as Fixed
Deposits.

The Company''s maximum exposure to credit risk for the components of the balance sheet at 31.03.2024 &
31.03.2025 is the carrying amounts as summarized in Note 4,8 & 9.

Other Assets:

The Company determines if there has been a significant increase in credit risk of the financial asset since
initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-
month ECL is measured and recognized as loss allowance. Subsequently, if credit risk has increased
significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance. Subsequently,
if the credit quality of the financial asset improves such that there is no longer a significant increase in credit
risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-
month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life
of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are
possible within 12 months from the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense
in the Statement of Profit and Loss under the head ''Finance Costs''.

Financial assets measured as at amortized cost: ECL is presented as an allowance, i.e., as an integral part
of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross
carrying amount.

(iv) Liquidity Risk:

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company
monitors its risk of a shortage of funds using future cash flow projections. The Company manages its liquidity
needs by continuously monitoring cash flows from customers and by maintaining adequate cash & cash
equivalent. The Company''s objective is to maintain a balance between continuity of funding and flexibility
through shareholder funds or borrowings from the holding company or sister concerns.

The following table summarises the maturity analysis of the Company''s financial liabilities based on
contractual undiscounted cash outflows:

29.27 Fair Valuation Techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best
and most relevant data available. The fair values of the financial assets and liabilities are included at the
amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade payables, and other current financial assets and liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Other non-current receivables are evaluated by the Company, based on parameters such as interest rates,
individual creditworthiness of the counterparty etc. Based on this evaluation, allowances are taken to account
for the expected losses of these receivables.

3) Fair value of Investments in un- quoted non-current Equity Shares are based on carrying cost.

Fair Value hierarchy

All financial assets and liabilities for which fair value is measured in the financial statements are categorized
within the fair value hierarchy, described as follows: -

Level 1 - Quoted prices in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable, either directly or
indirectly.

Level 3 - Inputs that are not based on observable market data.

The following table presents the fair value measurement hierarchy of financial assets and liabilities, which
have been measured subsequent to initial recognition at fair value as at 31st March, 2025 and 31^st March
2024:

During the year ended March 31, 2025 and March 31, 2024 there were no transfers between Level 1 and
Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements. There is
no transaction / balance under level 3

29.28 Leases: Non-cancellable Operating Leases

The operating leases entered by the Company are cancellable on serving a notice of one to three months
and accordingly, there are no non-cancellable operating leases required commitments for operating lease
payments.

29.29 Additional disclosure / Regulatory Information as required by Notification no. GSR .

207(E) dated 24.03.2021

i. Loan or advances granted to the promoters, directors and KMPs and the related parties

No loan or advances in the nature of loans have been granted to the promoters, directors, key managerial
persons and the related parties (as defined under the Companies Act, 2013), either severally or jointly with
any other person that are:

a) Repayable on demand, or

b) Without specifying any terms or period of repayment.

ii. Details of Benami Property held

No such property is held by the company during the audit period. Further, No proceedings have been initiated
or pending against the company for holding any benami property under benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. Reconciliation of quarterly statement of current assets filed with banks or financial statements

The Company has not been sanctioned working capital limits by banks or financial institutions on the basis
of security of current assets during any point of time of the year.

iv. Wilful Defaulter

The company is not declared as a wilful defaulter by any bank or financial Institution or other lender.

v. Relationship with Struck off Companies

There are no transaction with the companies whose name is struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2025 and the year ended
31 March 2024.

vi. Registration of charges or satisfaction with Registrar of Companies

No charges or satisfaction is pending to be registered with Registrar of Companies beyond the statutory
period.

vii. Compliance with number of layers of Companies

No layers of companies has been established beyond the limit prescribed as per above said section / rules.

viii. Compliance with approved Scheme(s) of Arrangements

No scheme of arrangements has been approved by the competent authority in terms of Section 230 to 237
of the Companies Act, 2013.

ix. Utilization of Borrowed funds and share premium:

xii. Corporate Social Responsibility (CSR)

Section 135 of The Company Act 2013 and Rules made under prescribe that every company having net worth
of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of
rupees five crore or more during any financial year shall ensure that the company spends, in every financial
year, at least two per cent. of the average net profits of the company made during the three immediately
preceding financial years, in pursuance of its Corporate Social Responsibility Policy. During the financial
year 2024-25 the company does not meet any of the three criteria mentioned above thus, no amount
required to be spent by the company under CRS provisions of the act in the financial year 2024-25(Previous
Year -N.A.).

29.30 Segment Information: Disclosures as required by Indian Standards (Ind AS - 108)

Operating Segments

• Information regarding Primary Segment Reporting as per IND AS - 108

The Company is engaged in single segment business of mainly trading of Coal, Coke, Manganese ore &
other Metal Products which according to the management is considered as the only business segment.

Accordingly, no separate segmental information has been provided herein.

• Geographical Segments

The Company operates in India and therefore caters to the needs of the domestic market, therefore,
there is only one geographical segment and hence, geographical segment information is not required to
be disclosed.

29.32 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies
under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, inserted by the
Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting
software for maintaining its books of accounts, shall only use such accounting software which
has a feature of recording audit trail of each and every transaction, creating an edit log of each
change made in the books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.

The Company uses Tally Prime Edit Log as its primary accounting software. This software includes a feature
for recording an audit trail (edit log) to ensure that all financial transactions and modifications are accurately
recorded and traceable. The audit trail (edit log) facility has been consistently operational throughout the
year for all relevant transactions recorded in the software.

29.33 The Standalone Financial Statements are presented in lacs. Those items which are required to be disclosed
and which were not presented in the Standalone Financial Statement due to rounding off to the nearest '' in
lacs if any are separately disclosed along with line items.

29.34 Previous year figures have been re-grouped and recast wherever necessary to make them comparable with

those of the current year.

29.35 Notes 1 to 29 form an integral part of the Balance Sheet and Statement of Profit & Loss of the Company.

AS PER OUR REPORT OF EVEN DATE ATTACHED FOR AND ON BEHALF OF THE BOARD

FOR O P BAGLA & CO LLP

CHARTERED ACCOUNTANTS

FIRM REGN NO. - 000018N/N500091 TARUN SOMANI SHOBHA SAHNI

DIRECTOR DIRECTOR

DIN : 00011233 DIN : 07478373

ATUL BAGLA

PARTNER

M.NO. 91885

VIKASH RAWAL SABINA NAGPAL ATUL GUPTA

CHIEF EXECUTIVE COMPANY SECRETARY CHIEF FINANCIAL

OFFICER & LAW OFFICER OFFICER

PLACE : NEW DELHI

DATED : 30/05/2025 UDIN 25091885BMLCNY7758

---

Mar 31, 2024

29.9 Provisions, Contingent Liability and Contingent Assets

Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales Tax, Income Tax Excise etc.) Pending in appeal / court for which no reliable estimate can be made and or involves uncertainty of the outcome of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliable estimation can be made of the amount of obligation, is recognized in accounts in

terms of discounted value, if the time value of money is material using a current pre-tax rate that reflects the risk specific to the liability.

No contingent asset is recognized but disclosed by way of notes to accounts.

29.10 Foreign Currency Translation

The company''s financial statements are presented in INR in Lacs, which is also the company''s functional currency.

a) Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date of transactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-a-vis functional currency between the date of transaction and that of payment is charged to Statement of Profit & Loss.

b) Monetary Assets in foreign currencies are translated into functional currency at the exchange rate ruling at the Reporting Date and the resultant gain or loss, is accounted for in the Statement of Profit & Loss.

c) Non-Monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

d) Impact of exchange fluctuation is separately disclosed in notes to accounts.

29.11 Earnings per Share

Basic Earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributed to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

29.12 Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use or sale.

Borrowing cost consists of interest and other costs that an entity incurs in connection with the borrowing of funds.

Borrowing costs also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing cost are recognized as expense in the period in which they are incurred.

29.13 Cash and Cash Equivalents

For the purpose of presentation in the cash flows statement, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

29.14 Property, Plant and Equipment Cost:-

Property, Plant & Equipment held for use in the production or supply of goods or services, or for administration purposes, are stated in the balance sheet at cost (net of duty/tax credit availed) less accumulated depreciation and accumulated impairment losses. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the company''s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for indented use. Depreciation of these assets, on the same basis as other property assets, commence when the assets are ready for their intended use.

Depreciation/Amortization:

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period with the effect of any changes in estimate accounted for on a prospective basis.

29.15 Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the

expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end.

29.16 Impairment

(i) Impairment of Financial Assets

The company assesses impairment based on expected credit losses (ECL) model at an amount equal to:-

• 12 months expected credit losses, or

• Lifetime expected credit losses

Depending upon whether there has been a significant increase in credit risk since initial recognition. However, for trade receivables, the company does not rack the changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

(ii) Impairment of Non-Financial Assets

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable

amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

29.17 Current versus Non-Current Classification

The company presents assets and liabilities in the Balance Sheet based on current/non-current classification. An Asset is current when it is:

a) Expected to be realised or intended to be sold or consumed in the normal operating cycle.

b) Held primarily for the purpose of trading.

c) Expected to be realised within twelve months after the reporting period, or

d) Cash or Cash Equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as Non- Current

A Liability is current when it is:

a) Expected to be settled in the normal operating cycle.

b) Held primarily for the purpose of trading.

c) Expected to be realised within twelve months after the reporting period, or

d) There is no conditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as Non- Current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. The Company has identified twelve months as its operating cycle.

29.18 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

29.19 Inventories

Inventories are valued at the lower of Cost and Net Realizable Value. The Cost for this purpose is determined as follows:

• Traded goods (traded): First In First Out method (FIFO).

Cost includes the necessary cost incurred in bringing inventory to its present location and condition necessary for use.

Net Realizable Value is the estimated selling price including applicable subsidy in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

29.20 Leases

The Company has applied Ind AS 116 from 1 April 2019.

Leases under Ind AS 116

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i) As lessee

The Company''s lease asset classes primarily consist of leases for buildings. The Company, at the inception of a contract, assesses whether the contract is a lease or not. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. This policy has been applied to contracts existing and entered on or after 1 April 2019.

The Company elected to use the following practical expedients on initial application:

1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

2. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.

3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

4. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use assets is subsequently measured 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 is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-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 lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company''s incremental borrowing rate. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. 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 re-measurement in statement of profit and loss.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The Company recognises the lease payments associated with these leases as an expense in the Statement of Profit or Loss over the lease term.

(ii) As lessor

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 in 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.

b) Company made Loan in earlier years of Rs. 135 Lacs to its wholly owned subsidiary company, which is utilised for business purposes.

29.26 Financial risk management objectives and Policies

The Company''s activities are exposed to a variety of financial risks from its operations. The key financial risks include market risk, credit risk and liquidity risk. The company''s overall risk management policy seeks to minimize potential adverse effects on company''s financial performance.

(i) Market Risk:

Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate because of change in market prices. Market risk comprises mainly three types of risk: interest rate, currency risk and other price risk such as equity price risk and commodity price risk.

(a) Foreign Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk through its operations in international trades. The results of the Company''s operations can be affected as the rupee appreciates/depreciates against these currencies. The Company has developed and enacted a risk management strategy to mitigate the risk of changes in exchange rates on foreign currency exposures.

(b) Interest Rate Risk:

Interest rate risk is the risk that the fair value of future cash flow of financial instruments will fluctuate because of change in market interest rates. The Company has not taken any loan from bank & financial instructions; hence there is not any interest rate risk.

(ii) Other Price Risk:

• Equity Price Risk:

The Company does not have any equity investment except investment in Subsidiary Company. The Subsidiary company investment to be shown at Carrying value as at the date of transition to IND AS, measured as per previous GAAP are treated as their deemed costs as at the date of transition.

• Commodity Price Risk:

The operating activities of the Company are mainly involves trading of commodities such as coal, coke, ores, metals etc. Almost all the purchases are covered by corresponding sale contracts thus the chances of price risk are negligible. The Company has also developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

(iii) Credit Risk:

Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, Inter Corporate deposit, derivative financial instruments, other balances with banks, loans and other receivables.

Credit risk arising from investment derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counter parties are banks and recognised financial institutions with high credit ratings.

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

i. Trade receivables

ii. Balance with banks & fixed Deposits

iii. Financial assets measured at amortized cost (other than trade receivables)

iv. Others

Trade Receivables:

Customer credit risk is managed through the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on the security held in its account. Outstanding customer receivables are regularly monitored. At the year end, the company have Rs 1495.17 Lacs (Previous Year Rs. Nil) outstanding trade receivable as per Note 6.

Balance & fixed Deposits with banks:

Credit Risk from balances & Fixed Deposits with banks is managed by the Company''s Finance Department in accordance with the company''s policy. Investments of surplus funds are made only with banks as Fixed Deposits.

The Company''s maximum exposure to credit risk for the components of the balance sheet at 31.03.2023 & 31.03.2024 is the carrying amounts as summarized in Note 7 & 8.

Other Assets:

The Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. Subsequently, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance. Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss under the head ''Finance Costs''.

Financial assets measured as at amortized cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

(iv) Liquidity Risk:

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company

29.27 Fair Valuation Techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Other non-current receivables are evaluated by the Company, based on parameters such as interest rates, individual creditworthiness of the counterparty etc. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

3) Fair value of Investments in un- quoted non-current Equity Shares are based on carrying cost.

Fair Value hierarchy

29.28 Leases: Non-cancellable Operating Leases

The operating leases entered by the Company are cancellable on serving a notice of one to three months and accordingly, there are no non-cancellable operating leases required commitments for operating lease payments.

29.29 Additional disclosure / Regulatory Information as required by Notification no. GSR 207(E) dated 24.03.2021

i. Loan or advances granted to the promoters, directors and KMPs and the related parties

No loan or advances in the nature of loans have been granted to the promoters, directors, key managerial persons and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are:

a) Repayable on demand, or

b) Without specifying any terms or period of repayment.

ii. Details of Benami Property held

No such property is held by the company during the audit period. Further, No proceedings have been initiated or pending against the company for holding any benami property under benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. Reconciliation of quarterly statement of current assets filed with banks or financial statements

The Company has not been sanctioned working capital limits by banks or financial institutions on the basis of security of current assets during any point of time of the year.

iv. Willful Defaulter

The company is not declared as a willful defaulter by any bank or financial Institution or other lender.

v. Relationship with Struck off Companies

There are no transaction with the companies whose name is struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2024 and the year ended 31 March 2024.

vi. Registration of charges or satisfaction with Registrar of Companies

No charges or satisfaction is pending to be registered with Registrar of Companies beyond the statutory period.

vii. Compliance with number of layers of Companies

No layers of companies has been established beyond the limit prescribed as per above said section / rules.

viii. Compliance with approved Scheme(s) of Arrangements

No scheme of arrangements has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

29.30 Segment Information: Disclosures as required by Indian Standards (Ind AS - 108)

Operating Segments

• Information regarding Primary Segment Reporting as per IND AS - 108

The Company is engaged in single segment business of mainly trading of Coal, Coke, Manganese ore & other Metal Products which according to the management is considered as the only business segment. cordingly, no separate segmental information has been provided herein.

• Geographical Segments

The Company operates in India and therefore caters to the needs of the domestic market, therefore, there is only one geographical segment and hence, geographical segment information is not required to be disclosed.

29.31 Earnings per share

29.32 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies

under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting

software for maintaining its books of accounts, shall only use such accounting software which

has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The new requirement is applicable with effect

from the financial year beginning on 1 April 2023.

The Company uses Tally Prime Edit Log as its primary accounting software. This software includes a feature for recording an audit trail (edit log) to ensure that all financial transactions and modifications are accurately recorded and traceable. The audit trail (edit log) facility has been consistently operational throughout the year for all relevant transactions recorded in the software.

29.33 The Standalone Financial Statements are presented in lacs. Those items which are required to be disclosed and which were not presented in the Standalone Financial Statement due to rounding off to the nearest '' in lacs if any are separately disclosed along with line items.

29.34 Previous year figures have been re-grouped and recast wherever necessary to make them comparable with

those of the current year.

29.35 Notes 1 to 29 form an integral part of the Balance Sheet and Statement of Profit & Loss of the Company.

AS PER REPORT OF EVEN DATE

FOR O P BAGLA & CO LLP FOR & ON BEHALF OF THE BOARD

CHARTERED ACCOUNTANTS

FIRM REGN NO. - 000018N/N500091

ATUL BAGLA TARUN SOMANI SHOBHA SAHNI

PARTNER DIRECTOR DIRECTOR

M.NO. 91885 DIN : 0011233 DIN : 07478373

VIKASH RAWAL SABINA NAGPAL ATUL GUPTA

CHIEF EXECUTIVE COMPANY CHIEF FINANCIAL OFFICER

OFFICER SECRETARY & LAW

OFFICER

PLACE: NEW DELHI DATED: 30/05/2024

UDIN 24091885BKBNDC8488_

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Mar 31, 2018

1. Company Information

Emergent Global Edu & Services Limited (the Company) is a domestic public limited Company with registered office situated at 8B, Sagar, 6, Tilak Marg, New Delhi -11001 and is listed on the Bombay Stock Exchange Limited (BSE).

Terms/rights attached to equity shares

Class of Equity Shares, Par Value, Vote per Share, dividend proposed. Distribution at the time of liquidation of co.

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend In Indian rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders..

NOTE NO. 2 : - PRINCIPAL DIFFERNECES BETWEEN IND AS AND INDIAN GAAP

THE FOLLOWING RECONCILATIONS PROVIDE A QUANTIFICATION OF THE EFFECT OF SIGNIFICANT DIIFERENCE5 ARISING AS A RESULT OF TRANSITION FROM PREVIOUS YEAR TO IND AS IN ACCORDANCE WITH IND AS 101:

A. OTHER EQUITY AS AT APRIL 01, 2016

B. OTHER EQUITY AS AT MARCH 31, 2017

C. PROFIT/(LOSS) FOR THE YEAR ENDED MARCH 31, 201?

D. BALANCE SHEET AS AT APRIL 01, 2016

E. BALANCE SHEET AS AT MARCH 31, 2017

References:-

a) Under Indian GAAP, Financial Assets and Financial Liabilities were measured at transaction cost less allowances for impairment, if any. Under Ind AS, these financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment, if any. The resulting finance charge or income is included in finance expenses or finance income in the statement of profit and Loss for Financial liabilities and financial assets respectively. Under Ind AS 109 - Financial Instruments are required to be value at fair value and difference between cost and fair value is to be amortised and consequently interest income or interest expenses to be booked effective interest method in the statement of Profit & Loss.

b) Under Previous GAAP, actuarial gains and losses on employees defined benefits obligations (i.e. gratuity) were recognised in profit or loss. Under Ind AS, the actuarial gains and losses on re-measurement of net defined benefit obligations are recognised in other comprehensive income & corresponding tax impact on the same. This resulted in a reclassification between profit or loss and other comprehensive income. Due to this, actuarial gains and Losses Rs. 17,360/- & deferred tax Rs. 5,185 i- for the period ended March 31, 2017 shown in OCI and reversal in statement of profit and Loss.

c) Fair valuation of investments: Under the Previous GAAP, current investments were measured at lower of cost or fair value and long term investments were measured at cost less diminution in value which is other than temporary. Under Ind AS, investments are measured at fair value and the mark-to-market gains/losses are recognized either through profit or loss (FVTPL) or through other comprehensive income (FVTOCI) based on the business model test. Effect of ind AS adoption on total, comprehensive income represents the mark-to-market gains/ losses on investment.

d) Under previous GAAP, discounting of provisions was not permitted and provisions were measured at best estimate of the expenditure required to settle the obligation at the balance sheet date without considering the effect of discounting. Under Ind AS, provisions are measured at discounted amounts. The effects of these are reflected in total equity and profit or loss.

e) Under Ind AS, deferred taxes are recognised relating to Ind AS adjustments including deferred taxes measured using balance sheet approach. The effects of these are reflected in total equity and profit or loss.

f) Under previous GAAP, the fixed assets of the Company were revalued and a revaluation reserve was created. Under Ind AS, the Company has adopted previous GAAP carrying value as deemed cost for PPE as on transition date and accordingly revaluation reserve has been transferred to retained earnings.

g) Under previous GAAP, there was no separate record in the financial statements for Other Comprehensive Income (OCI). Under Ind AS, specified items of income, expense, gains and losses are presented under OCI.

B. NOTES ON ACCOUNTS.

3. Sundry Debtors, 1,03113 & Advances are subject to confirmation.

4. Previous year figures have been re-grouped and recast wherever necessary to make them comparable with those of the current year.

5. Disclosure under Micro, small and Medium Enterprises Development (MSMED) Act, 2006:

As per the information available with the Company and as certified by the management, there are no dues outstanding including interest as on 31st March,2018 to Micro, Small and Medium Enterprises as defined under the Micro, small and Medium Enterprises Development (MSMED) Act, 2006.

6. The disclosures as required as per the Ind AS 19 “Employee Benefits” notified in the Companies (Accounting Standards) Rules, 2006 are as given below:

(a) The company has long-time retirement benefit plan of gratuity at the year end no shortfall remains un provided for. As advised by an independent actuary valuation.

7. The Loan instrument (Financial Assets) have been initially measured at fair value by discounting the cash inflow from financial instruments with discount rate of 11% p.a.

The difference between the initial inflows and fair value of the financial instruments issued to Indo Education Pvt Ltd are treated as “deemed equity investment”. This Deemed Equity Investment is amortized through profit & loss account over the period of loan receivable repayment schedule, (Refer below)

8. Financial risk management objectives and Policies

The Company''s activities are exposed to a variety of financial risks from its operations. The key financial risks include market risk, credit risk and liquidity risk. The company’s overall risk management policy seeks to minimize potential adverse effects on company’s financial performance.

(i) Market Risk: Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate because of change in market prices. Market risk comprises mainly three types of risk: interest rate, currency risk and other price risk such as equity price risk and commodity price risk.

(a) Foreign Currency Risk: The Company’s transactions do not expose the company to exchange rate fluctuations. The operations of the Company are INR based. INR is its functional currency.

Interest rate risk-Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any change in the interest rates environment may impact future rates of borrowing. The company mitigates this risk by regularly assessing the market scenario, finding appropriate financial instruments, interest rate negotiation with the lenders for ensuring the cost effective method of financing.

(b) Interest Rate Sensitivity: Interest rate risk is the risk that, the fair value of future cash flow of financial instruments will fluctuate because of change in market interest rates. The Company has not taken any loan from bank & financial instructions; hence there is not any interest rate risk.

(c) Equity Price Risk: The Company has not equity investment except investment in Subsidiary Company. The Subsidiary company investment to be shown at Carrying value as at the date of transition to IND AS, measured as per previous GAAP are treated as their deemed costs as at the date of transition.

(ii) Credit Risk:

Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, Inter Corporate deposit, derivative financial instruments, other balances with banks, loans and other receivables.

Credit risk arising from investment derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counter parties are banks and recognised financial institutions with high credit ratings.

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:

i. Trade receivables

ii. Balance with banks & fixed Deposits

ii. Financial assets measured at amortized cost (other than trade receivables)

iii. Others

Trade Receivables: Customer credit risk is managed through the company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on the security held in his account. Outstanding customer receivables are regularly monitored. At the year end. the company does not have any outstanding trade receivable.

Balance & fixed Deposits with banks: Credit Risk from balances & Fixed Deposits with banks is managed by the Company’s Finance Department in accordance with the company’s policy. Investments of surplus funds are made only with banks as fixed deposits.

The Company’s maximum exposure to credit risk for the components of the balance sheet at 31.03.2018 & 31.03.2017 is the carrying amounts as summarized in Note No. 4 & 5.

Other Assets: The Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. Subsequently, if credit risk, has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance. Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in. the Statement of Profit and Loss under the head ‘Other expenses’. The balance sheet presentation for financial instruments is described below:

Financial assets measured as at amortized cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

(iii) Liquidity Risk; Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company monitors its risk of a shortage of funds using future cash flow projections. The Company manages its liquidity needs by continuously monitoring cash flows from customers and by maintaining adequate cash & cash equivalent. The Company’s objective is to maintain a balance between continuity of funding and flexibility through shareholder funds or borrowings from the holding company or sister concerns.

9. Fair Valuation Techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Fair value of borrowings from banks and other non-current financial liabilities, are estimated by discounting future cash, flows using rates currently available for debt on similar terms and remaining maturities.

3) Other non-current receivables are evaluated by the Company, based on parameters such as interest rates, individual creditworthiness of the counterparty etc. Based on this evaluation, allowances are taken to account for the expected losses of these receivables,

4) Fair value of Investments in quoted non-current Equity Shares are based on quoted market . price at the reporting date,

5) The fair values of derivatives are calculated using the RBI reference rate as on the reporting date as well as other variable parameters.

Fair Value hierarchy

AH financial assets and liabilities for which fair value is measured in the financial statements are categorized within the fair value hierarchy, described as follows: -

Level 1 - Quoted prices in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

Level 3 - Inputs that are not based on observable market data.

The following table presents the fair value measurement hierarchy of financial assets and liabilities, which have been measured subsequent to initial recognition at fair value as at 31st March, 2018, 31st March 2017 and 1st April 2016;

During the year ended March 31, 2017 and March 31, 201.6, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements. There is no transaction / balance under level 3.

10. Notes 1 to 20 form an integral part of the Balance Sheet and Profit & Loss Statement of the Company.

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Mar 31, 2016

(a) The Company has, with effect from 1^st April, 2013 adopted Accounting Standard 15, Employee Benefits (revised 2005), issued by the Institute of Chartered Accountants of India (the ‘revised AS 15’)

(b) The company has long-time retirement benefit plan of gratuity at the yearend no shortfall remains un provided for. As advised by an independent actuary valuation.

(c) Defined benefit plan

In accordance with Accounting Standards 15, actuarial valuation was performed in respect of the aforesaid defined benefit plans based on the followings assumptions:

16.18 Related Parties Disclosure as required by Accounting Standards- 18 issued by ICAI.:-1. Related Parties

a) Subsidiary : Indo Education Private Limited

b) Associate Companies

- Uni Coke Pvt. Ltd.

- Indo Power tech Limited.

c) Group Companies where Common control exist

- Indo German International Pvt. Ltd.

- Somani Kuttner India Private Ltd.

- Northern Exim Pvt Ltd.

- Somani Housing Pvt. Ltd

- Northern Trading Pvt Ltd.

- Indoit Real Estates Ltd.

- Indo Investment Pvt. Ltd.

- Prudent Apartments Pvt. Ltd.

- Meena Properties Pvt. Ltd.

- Indo Russian International Pvt. Ltd.

- Indo Mercuria International Pvt Ltd.

- Indo Macquarie Education Service Ltd.

- Northern Realtors Pvt. Ltd

- Saatvik Housing Pvt. Ltd.

- Mechel Somani Carbon Pvt. Ltd.

d) Key Management Personnel

- Mr. T. K. Somani

- Mr. R.C. Khanduri

- Mrs. Sabina Nagpal

b) Company made Loan of Rs. 12,99,67,000 to its wholly owned subsidiary company, which is utilized for business purposes.

16.20 Notes 1 to 16 form an integral part of the Balance Sheet and Profit & Loss Statement of the Company.

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Mar 31, 2015

1. Terms/rights attached to equity shares

Class of Equity Shares, Par Value, Vote per Share, dividend proposed, Distribution at the time of liquidation of co.

2. The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees.

3. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

4. Related Parties Disclosure as required by Accounting Standards- 18 issued by ICAI.:- 1. Related Parties

a) Subsidiary : Indo Education Private Limited

b) Associate Companies

* Uni Coke Pvt. Ltd.

* Indo Powertech Limited.

c) Group Companies where Common control exist

* Indo German International Pvt. Ltd.

* Somani Kuttner India Private Ltd.

* Northern Exim Pvt Ltd.

* Somani Housing Pvt. Ltd

* Northern Trading Pvt Ltd.

* Indoit Real Estates Ltd.

* Indo Investment Pvt. Ltd.

* Prudent Apartments Pvt. Ltd.

* Meena Properties Pvt. Ltd.

* Indo Russian International Pvt. Ltd.

* Indo Mercuria International Pvt Ltd.

* Indo Macquarie Education Service Ltd.

* Northern Realtors Pvt. Ltd

* Saatvik Housing Pvt. Ltd.

* Mechel Somani Carbon Pvt. Ltd.

d) Key Management Personnel

* Mr. T. K. Somani

b) Company made Loan of Rs. 12,93,17,000 to its wholly owned subsidiary company, which utilised for business purposes.

5. Notes 1 to 16 form an integral part of the Balance Sheet and Profit & Loss Statement of the Company.

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Mar 31, 2014

1. SHARE CAPITAL

Terms/rights attached to equity shares

Class of Equity Shares, Par Value, Vote per Share, dividend proposed, Distribution at the time of liquidation of co.

The company has only one class of equity shares having a par value od Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all prefenrential amounts. The distribution will be propertion to the number of equity shares held by the shareholders.

2. Sundry Debtors, Loans & Advances are subject to confirmation.

3. Previous year figures have been re-grouped and recast wherever necessary to make them comparable with those of the current year.

4. Disclosure under Micro, small and Medium Enterprises Development (MSMED) Act, 2006:

As per the information available with the Company and as certified by the management, there are no dues outstanding including interest as on 31st March,2014 to Micro, Small and Medium Enterprise as defined under the Micro, small and Medium Enterprises Development (MSMLD) Act, 2006.

5. The disclosurers as required as per the revised As 15 are as under:-

(a) The Company has, with effect from 1st April, 2013 adopted Accounting Standard 15, Employee Benefits (revised 2005), issued by the Institute of Chartered Accountants of India (the ''revised AS 15'').

(b) The company has long-time retirement plan of gratuity at the year end no shortfall remains un provided for. As advised by an independent actuary valuation.

6. Related Parties Disclosure as required by Accounting Standards- 18 issued by ICAI.:-

1. Related Parties

a) Subsidiary : Indo Education Private Limited

b) Associate Companies

* Uni Coke Pvt. Ltd.

* Indo Powertech Limited.

c) Group Companies where Common control exist

* Indo German International Pvt. Ltd.

* Somani Kuttner India Private Ltd.

* Northern Exim Pvt Ltd.

* Somani Housing Pvt. Ltd

* Northern Trading Pvt Ltd.

* Indoit Real Estates Ltd.

* Indo Investment Pvt. Ltd.

* Prudent Apartments Pvt. Ltd.

* Meena Properties Pvt. Ltd.

* Indo Russian International Pvt. Ltd.

* Indo Mercuria International Pvt Ltd.

* Indo Macquarie Education Service Ltd.

* Northern Realtors Pvt. Ltd

* Saatvik Housing Pvt. Ltd.

* Mechel Somani Carbon Pvt. Ltd.

d) Key Management Personnel

* Mr. T. K. Somani

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Mar 31, 2013

1.1 Sundry Debtors, Loans & Advances are subject to confirmation.

1.2 Previous year figures have been re-grouped and recast wherever necessary to make them comparable with those of the current year.

1.3 with effect from 04-04-2013, the name of the company was changed from "Emergent Energy and Services Limited" to "Emergent Global Edu and Services Limited".

1.4 Disclosure under Micro, small and Medium Enterprises Development (MSMED) Act, 2006:

As per the information available with the Company and as certified by the management, there are no dues outstanding including interest as on 31st March,2013 to Micro, Small and Medium Enterprises as defined under the Micro, small and Medium Enterprises Development (MSMED) Act, 2006.

1.5 No is made as Gratuity Act 1972 is not applicable. Rl Chartered

1.6 Related Parties Disclosure as required by Accounting Standards- 18 issued by ICAI.:-

1. Related Parties

a) Subsidiary : Indo Education Private Limited

b) Associate Companies

> Uni Coke Pvt. Ltd.

> Indo Powertech Limited.

c) Group Companies where Common control exist

> Indo German International Pvt. Ltd.

> Somani Kuttner India Private Ltd.

> Northern Exim Pvt Ltd.

> Somani Housing Pvt Ltd

> Northern Trading Pvt Ltd.

> Indoit Real Estates Ltd.

> Indo Investment Pvt. Ltd.

> Prudent Apartments Pvt. Ltd.

> Meena Properties Pvt. Ltd.

> Indo Russian International Pvt Ltd.

> Indo Mercuria International Pvt Ltd.

> Indo Macquarie Education Service Ltd

> Northern Realtors Pvt. Ltd

> Saatvik Housing Pvt. Ltd.

> Mechel Somani Carbon Pvt. Ltd.

d) Key Management Personnel

Mr. D. K. Somani Mr. T. K. Somani

1.7 Notes 1 to 14 form an integral part of the Balance Sheet and Profit & Loss Statement of the Company.

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Mar 31, 2012

Terms/rights attached to equity shares

Class of Equity Shares, Par Value, Vote per Share, dividend proposed, Distribution at the time of liquidation of co.

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1.1 Sundry Debtors, Loans & Advances are subject to confirmation.

1.2 Previous year figures have been re-grouped and recast wherever necessary to make them comparable with those of the current year.

1.3 Additional information as required under part II of the Schedule VI of the Companies Act, 1956:-

1.4 Disclosure under Micro, small and Medium Enterprises Development (MSMED) Act, 2006:

As per the information available with the Company and as certified by the management, there are no dues outstanding including interest as on 31st March,2012 to Micro, Small and Medium Enterprises as defined under the Micro, small and Medium Enterprises Development (MSMED) Act, 2006.

1.5 No provision for Gratuity is made as Gratuity Act 1972 is not applicable.

1.6 Related Parties Disclosure as required by Accounting Standards- 18 issued by ICAI. 1. Related Parties

a) Subsidiary : Indo Education Private Limited

b) Associate Companies

- Uni Coke Pvt. Ltd.

- Indo Powertech Limited.

c) Group Companies where Common control exist

- Indo German International Pvt. Ltd.

- Somani Kuttner India Private Ltd.

- Northern Exim Pvt Ltd.

- Somani Housing Pvt. Ltd

- Northern Trading Pvt Ltd.

- Indoit Real Estates Ltd.

- Indo Investment Pvt. Ltd.

- Prudent Apartments Pvt. Ltd.

- Meena Properties Pvt. Ltd.

- Indo Russian International Pvt. Ltd.

- Indo Mercuria International Pvt Ltd.

- Indo Macquarie Education Service Ltd.

- Northern Realtors Pvt. Ltd

- Saatvik Housing Pvt. Ltd.

- Mechel Somani Carbon Pvt. Ltd.

d) Key Management Personnel

Mr. D. K. Somani

Mr. T. K. Somani

1.7 Notes 1 to 15 form an integral part of the Balance Sheet and Profit & Loss Statement of the Company.

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Mar 31, 2010

1. Previous year figures have been re-grouped and recast wherever necessary to make them comparable with those of the current year.

2. Auditors remuneration includes:

Audit fees : Rs.47,429/- (Previous year : Rs. 41,620/-)

3. Disclosure under Micro, small and Medium Enterprises Development (MSMED) Act, 2006:

As per the information available with the Company and as certified by the management, there are no dues outstanding including interest as on 31st March,2010 to Micro, Small and Medium Enterprises as defined under the Mi pro, small and Medium Enterprises Development (MSMED) Act, 2006.

4. The erstwhile promoters namely Mr.Gautam G.Mehta were holding 55,050 equity shares (22.11% paid up capital) and Mr.Jaimin G.Mehta holding 82,450 ( 33.11% paid up capital) aggregating to 1,37,500 equity shares of the face value of Rs.10/- each representing 55.52 % of the paid up equity share capital of the Company. Mr.Jaimin G.Mehta entered into Spot delivery contract with Mr. Tarun Somani dated December 10, 2009 for sale of 37,100 equity shares representing 14.90 % of the current paid up equity share capital of the Company. Further, Mr.Devendra Kumar Somani and Mr.Tarun Kumar Somani (Acquirers) entered into a Share Purchase Agreement dated December 30,2009 with Mr.Gautam Mehta and Mr.Jaimin Mehta for further acquiring 1,00,400 equity shares representing 40.32% of the paid up equity share capital of the Company. The erstwhile promoters have divested their entire equity holding in Shree Om Trades Limited in favour of the Acquirers. Pursuant to this acquisition, the acquirers made an open offer to purchase 49,800 equity shares representing 20% of the paid up equity share capital of the Company. The said open offer process was concluded on March 26, The 1,00.400 equity shares under the Share Purchase Agreement and the 46,800 equity shares tendered under the open offer were transferred in the name of the acquirers on March 31, 2010. The process of acquisition is complete and the company has complied with relevant regulations of SEBI.

5. During the year, the Company does not have any transaction with the related parties as covered by the Accounting Standard 18 issued by the ICA1.

6. Earnings per share

a) Net Profit after tax attributable to equity shareholders (Rs.)