3.14 Provisions
A provision Is recognised when the Company has a present obligation as a result of past events and It is probable that an
outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.
Provisions are not discounted to their present value and are determined based on the best estimate required to settle tho
obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates.The Accounting Standard - 29 issued has been duly followed while preparing the financial statement of the
period.
3.15 Contingent Liabilities and Commitments
A Contigent liability is a possible obligation that arises from p3»t events whose existence will be confirmed by the
occurrence or non- occurrence of one or more uncertain future events beyond the control of the management. Contigeni
assets are neither recognised nordisdosed in the financial statements.
1 The above Financials results have been arrived at after going through the Balance Sheet and Profit & Loss Account fo' the Company for the year ending on 31st
March, 2025
2. TbissegmentrepoitofM/sCmkayTaps&CuttirigTooIsLtd .s prepared In accordances the Accounting Standard 17 “Segment Reporting"
3. For the purpose of This reporting. Business Segment are considered as primary segments. Since the Company is operating from single location, There are no
Geographical segments tor the company. However, based on Business Line, there are 2 segments, vlr, Trading & Manufacturing o* Tools and Generation of
Power.
4. 3The measurement principles for segment reporting are based on IND AS adopted in the consolidated r'narial statements. Sogments’s performance is evaluated
based on segment revenueand profit O' toss from operating 3Ctiv.oes i.e. segment results
5 Operating revenues and expenses related to both third party and Intersegment transactions are Included in determining the segment results of each respective
segment Finance Income earned and finance expense incurred is not allocated to individual segment and the same has been reflected at the Group Level for
segment report' ng Inter-segment oricing ancf terms are reviewed and changed by the management to reflect changes in market conditions and changes to such
terms are reflected in the per.od the change occurs Segment information prior to the change ;n terms i$ not restated. These transactions nave been eliminated
on consolidation The total assets disclosed for each segment represent assets directly managed by each segment, and primarily Include receivables, property,
plant and equipment, intangibles, ioventor.es, operating cash and bank balances, ir.ter-sefmenlassetsand exclude derivative financial instruments, deferred tax
assets and Income tax recoverable.
6. Segment liabilities comprise operating liabilities and exclude external borrowings, provision for taxes, deferred tax liabilities and derivative financial instruments.
7. Segment capital expenditure comprises additions toproperty, plant and equipment and intangible assets (ret of r ebares, where applicable).
ADDITIONAL regulatory information
0 Title Deeds of Immovable Property not held In t he name of the Company
The company does have any immovable property whose title deeds are not held In the name of the company during the period under
reporting.
II) Disclosures for Loans and Advances to Related persons
During the period under reporting, the Company has not granted Loans and Advances In t he nature of loans to Promoters, Directors, KMP's
and related parties (as definec under Companies Act, 2013} either severally or jointly with any other person.
lii) Capital-Wort-In Progress (CWlP)
The company does not have any Capita I-Work-m Progress during the period under reporting.
Iv) Intangible Assets under Development
During the period underreporting, the Company has no Intangible Assests which are under Development stage
v) 3orrowin8 from Banks and r manoal insrrtuTion on security of Current Assets
The Company has a Cash Credit facility availed from ICICI Bank & during the period under reporting.
a) The quarterly returns of statements of current assets filed by the Company with the Bank are In agreement with the books of accounts.
Note 4 5
SCHEME OF ARRANGEMENT
The Board of Directors of Emkay Tops and Cutting Tools I imited ("ETCTl. or Demerged Company") and Emkay Tools Limited ("ETl or Resultant
Company"} In their respective meetings dated 29/06/7023 approved the Composite Scheme of Arrangement ("Scheme") between ETCTl. and ETL
as well as their respective shareholders, In accordance with Section 230 to 232 rescl with Section 66 of the Companies Act. 2013 and other
applicable provisions and rules The Scheme entails the demerger of the Tools Business' fromm ETCTl into ETL, with an appointed date of
01/04/2024.
The Honourable National Company I aw Tribunal ("NCLT") of the Mumbai Bench approved the scheme of Dermerger via Order No. C.P.{CAA|
122(MB} 2024 dated 28/10/2024. The certified true copy of the order was received on 12/11/2024 and filed with Registrar of Company on
19/11/2024 The Scheme becomes effective / operative from the effective date of 19/11/2024, with this, the Tools Business of ETCTl being
transferred toand vested In ETL with effect from the appointed date i.e., 01/04/2024
Upon operation of the Scheme, the existing share capital of ETL, amounting to Rs. 1.00 l akhs divided Into 1,00,000 shares of Rs. 1 each, fully paid
up. held by the Demerged Company, prior to the Scheme becoming effective, shall stand cancelled without any further application, act,
instrument, or deed, as an integral part of this Scheme, with adjustments done through Capital Reserve of the Company. As per the Scheme, the
Resulting Company has issued one fully paid up equity shares of Rs. 1 each for every one fully paid up equity share of Rs. 10 each held by the equity
shareholders of the Demerged Company (ETCTL). Accordingly the Paid up capital of ETL Is determined as Rs. 1.06.71 lakhs composing of
1.06,71,300 shares of Rs. 1 each
The record date for allotment of shares of resultant company was fixed as 04/12/2024 and the issuance and allotment of equity shares tool place
on 05/12/2024.
Prom the appointed date, the Tools Business of ETCTl, including all assets and liabilities is transferred and vested to ETl in accordance with the
Scheme. Consequently, the Deferred Tax LaibiUty related to those assets and liabilities has been remeasured and has resulted in a charge of Rs.
10.24 lakhs to the opening balance of retained earning of ETL Further, any incremental deferred tax liability from the period from 1st April 2024 to
31st March 2025 has been debited to Profit and l-oss Account
PRFVIOllSYEAR FIGURES
The previous year figures have been regrouped, recasted and reclassified whereever necessary to make them comparable with those of current
yearfigures.
lor fc'T-.'V I-.; I cm: ; !:•:!. I HI
«L Ý •Citnuilil As Per My Report of Ewn Dole Attached
Chainnnn, for Vi'hM ’> iiirr - i'.nmp*rii
MunnRios Denselot & CEO Chn/lsrtd Accountant
PIN MO 0CO41273 FUN 128S72W
3*- Ait'tyu <n*i| ®. VA SnrukKr
Company Secretary Chief Finance 0<l it or t5i 8.S. ! * jM»c
Purtnei
Plan* Nuipur Memtwrth»a No. 127SJ2
fMtwl JO.'Qf!/2flZ5
UDN • 29177S278WVAIX4317
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