Notes to Accounts of Indian Emulsifiers Ltd.

Mar 31, 2025

X PROVISION AND CONTIGENCIES

A Provision is recognized when the company
has a present legal or constructive obligation
as a result of past event and it is probable
that an outflow of resources will be required
to settle the obligation, in respect of which
reliable estimate can be made. Provisions
(including retirement benefits) are not
discounted to its present value and are
determined based on best estimate required
to settle the obligation at the balance sheet
date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current
best estimate. Contingent liabilities are not
recognized in profit & loss account but are
disclosed in Notes to the Accounts.

XI BORROWING COST

Borrowing Cost that are attributable to the
acquisition or construction of qualifying
assets are capitalised as part of the cost of
such assets. A Qualifying asset is one that
necessarily takes substantial period of time
to get ready for intended use. All other
borrowing costs are charged to revenue.

XII CASH FLOW STATEMENT

Cash flows are reported using the
indirect method, whereby net profit
before tax is adjusted for the effects of
transactions of non-cash nature and any

deferrals or accruals of past of future cash
receipts and payments. The cash flows
from operating, investing and financing
activities of the Company are segregated.

XIII RETIREMENT AND OTHER EMPLOYEE
BENEFITS

1. Gratuity

The Company provides for the gratuity of defined
benefit retirement plan covering qualifying
employees. The plan provides for lump sum
payments to employees upon death while
employment or on separation from employment
after serving for the stipulated period mentioned
under The Payment of Gratuity Act, 1972

Risks associated with Defined Benefit Obligation

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then
the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit,
the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed
salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
then the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may
not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent
of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are
significant changes in the discount rate during the inter- valuation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits.
If some of such employees resign/retire from the company there can be strain on the cashflows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects
the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the
plan benefits & vice versa. This assumption depends on the yields on the corporate/ government bonds and hence
the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay
higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the
same will have to be recognized immediately in the year when any such amendment is effective.

Company’s CSR Policy

1 A brief outline of the Company’s CSR Policy

Indian Emulsifiers Limited firmly believes that it has a commitment to all its stakeholders, customers, employees
and the community in which it operates and it can fulfill this commitment only by sustainable and inclusive
growth. The Company aims to improve quality of life through its positive intervention in the community. The
Company''s key CSR initiatives are undertaken with a long term view and are sustainable having a long term
benefits to the society at large which do not results in business benefits.

2 Composition of CSR Committee

a) Vaishali Dipen Tarsariya- Chairman

b) Yash Tikekar- Member

c) - Rajaram Gordhanlal Agarwal- Member

3 Average Net Profit of the Company for the last three financial years

Average Net Profit of the Company for the last three financial years is Rs.5,19,68,566.

4 Prescribed CSR expenditure (2% of the amount as in ite no 3 above)

The Company was required to spend Rs.10,39,371 based on the average net profit mentioned in item
no 3 above.

5 Details of CSR spent during the financial year

i. Total amount spent by the Company for the financial year is Rs.7,00,000.

ii. Amount unspent: Out of the prescribed CSR expenditure of Rs.10.39 lacs for FY 2024-25, Rs. 7 lacs was
utilised due to limited availability of the sustainable programs of projects which meet the vision of the
Company. The company has been continuously and persistently exploring novel opportunities and possibilities
in the form of sustainanble programs or projects for CSR activities to create larger social impact and positive
changes in the lives of the community.

NOTE 3(7) : ADDITIONAL REGULATORY INFORMATION

With Regard to the Additional Regulatory Information as mandated under the Companies Act the following
disclosures are made :

The funds borrowed by the Company from Banks and financial institutions have been used for the specific
purpose for which they were raised.

b The Company does not have any Benami property, and no proceeding has been initiated or is pending against
the Company for holding any Benami property.

All the immovable properties (other than properties where the Company is the lessee and the lease agreements
c are duly executed in favour of the lessee) title deeds are held in the name of the company and Company is the
sole owner of these immovable properties

d The Company has not revalued its Property, Plant and Equipments during the year.

The Company has not granted any loans or advances to promoters, directors, KMPs or Related Parties either
e

severally or jointly.

f There is capital asset in progress as at the date of the balance sheet and whose ageing schedule is as follows-

The Company has not been declared wilful defaulter by any bank or financial institution or government or any
^g government authority.

h The Company does not have any transactions with companies struck off.

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

j The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company does not have any such transaction which is not recorded in the books of accounts that has
k been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

l The Company has not issued any such type of security for a specific purpose.

m The Company has not proposed or declare dividend during the year.

For Dave and Dave FOR INDIAN EMULSFIERS LIMITED

Chartered Accountants
FRN: 102163W

Sd/- Yash Tikekar Abhay Tikekar

CA Lilashankar Dave Director Director

Partner DIN: 02206485 DIN: 10425123

Membership No. 042889

Mumbai, 16th May 2025 Mandeep Pandey Ramraj Singh Thakur

UDIN:25042889BMLEFV6863 CFO Company Secretary

---

Mar 31, 2024

1) CONTINGENT LIABILITIES NOT PROVIDED FOR
	AS AT 31ST MARCH 2024	AS AT 31ST MARCH, 2023
	Nil	Nil

2) Amounts due to Small Scale Industrial undertakings and Micro, Small and Medium Enterprises

Based on the information and records available with the Company, no amounts are payable to small scale industrial undertakings as at March 31, 2024, which are outstanding for more than 30 days.

4) Previous Years figures have been regrouped and reclassified wherever necessary to confirm current years classification &

5) Balunces of Sundry Creditors and Loans & Advances are subject to confirmation.

With Regard to the Additional Regulatory Information as mandated under the Companies Act the following disclosures are made

_a The funds borrowed by the Company from Banks and financial institutions have been used for the specific purpose for which they were raised

The Company does not have any Benami property, and no proceeding has been initiated or is pending against the b

Company for holding any Benami property.

All the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly

c executed in favour of the lessee) title deeds are held in the name of the company and Company is the sole owner of these

immovable properties

d The Company has not revalued its Property, Plant and Equipments during the year.

_e The Company has not granted any loans or advances to promoters, directors, KMPs or Related Parties either severally or

jointly

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government ^g authority.

h The Company does not have any transactions with companies struck off

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory ⁱ period

J The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company does not have any such transaction which is not recorded in the books of accounts that has been k surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

l The Company has not issued any such type of security for a specific purpose

_m The Company has not proposed or declare dividend during the year

As per Ind AS 109 (Finnacial Instruments), Financial assets are defined as any asset that is (a) cash, (b) an equity instrument of another entity, (c) a contractual right to receive cash or another financial asset from another entity or to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will or may be settled in entity''s own equity instruments and is a non-derivative for which the entity is or may be obliged to receive a variable number of entity''s own equity instruments or a derivative that will or may be settled other than by exchange of fixed amount of entity''s own equity instruments.

Since the aforesaid security deposits are receivable in cash at the end of contract period therefore they are considered as financial assets

However, out of the above, deposits amounting to Rs. 4,10,100 are provided to the customers and will be refunded when the business operations are suspended or ended within the parties and since the period is uncertain and not decided within the parties therefore it is difficult to give the treatment as per Ind AS 32. Hence the same is recognised at cost

Additionally Ind AS 116, Lease, provides exclusions wherein a lessee can elect not to apply Ind AS 116''s recongintion requirements to- (a) Short term leases and (b) Leases for which underlying asset is of low value.

The aforesaid deposits include security deposit amounting to Rs. 2,00,000 which is in regards to warehouse taken on rent. The said agreement of rent is for shorter period i.e. 12 months therefore the same shall fall under the scope of exclusions of Ind AS 116 hence the security deposit will be recognised at cost and expense in relation to the same will be booked through Profit and Loss Account on straight line basis over the lease term.

Further, Deposit amounting to Rs.4,00,000 is in regards to machinery taken on rent and would also fall under the scope of exclusion therefore the same is also recognised at cost.

The Company has one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The paid-up equity shares of the Company rank pari-passu in all respects including dividend. 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.

Convertible Preference Shares of Face value of Rs. 100/- on such terms and conditions including but not limited as to the rate of dividend, period and manner of redemption as the Board in its absolute discretion may determine for the purpose of agmenting the long term resource base of the company. The said prefernce shares have been converted into equity capital in the current year 2023-24

a. Nature of Security-From Banks

The term loan taken from Bank of India is secured against the factory- Land, Building and Plant and Machinery, etc located at E-10 Lote Parashuram Industrial Zone MIDC, Tal -Khed, Ratnagiri 415722

From Related Party

The directors and shareholders of the Company have provided the aforesaid interest free loan to the Company in accordance with the provisions of the Companies Act 2013

b. The Company has not made default in terms of repayment to loan from banks and financial institutions.