10 Provisions and Contingent Liabilities

A provision is recognised if, as a
result of past event, the Company
has a present legal obligation that
can be estimated reliably and it is
probable that an outflow of economic
benefit will be required to settle the
obligation. Provisions are determined
by the best estimate of outflow of
economic benefits required to settle
the obligation at the reporting date.
Where no reliable estimate can

be made, a disclosure is made as
contingent liability. A disclosure for
a contingent liability is also made
when there is a possible obligation
or a present obligation that may, but
probably will not, require an outflow
of resources. Where there is possible
obligation or present obligation in
respect of which the likelihood of
outflow of resources is remote, no
provision or disclosure is made.

11 Earnings Per Share

Basic Earnings per share is computed
by dividing the net profit after tax by
the weighted average number of
equity shares outstanding during the
period. Diluted earnings per share is
computed by dividing the net profit
after tax by the weighted average
number of shares considered for
deriving basic earnings per share
and also the weighted average
number of equity shares that
could have been issued upon
conversion of all dilutive potential
equity shares. The diluted potential
equity shares are adjusted for the
proceeds receivable had the shares
been actually issued at fair value
which is the average market value
of the outstanding shares. Dilutive
potential equity shares are deemed
converted as at the beginning of the
period, unless issued at a later date.
Dilutive potential equity shares are
determined independently for each
period presented.

12 Cash and Bank Balances

Cash and cash equivalents comprise
cash and current deposits with

banks. The Company considers
all highly liquid investments with
a original maturity at a date of
purchase of three months or less
and that are readily convertible to
known amounts of cash to be cash
equivalents. Other Bank Balances: All
Deposits having a maturity period of
More than 3 months and less than
12 months are taken in Other Bank
Balances

13 Cash Flow Statement

Cash flows are reported using indirect
method, whereby net profit/loss
before tax 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.

14 Inventory

Inventories are valued at lower of cost
and net realisable value. The cost is
computed on weighted average
basis. Finished Goods and Process
Stock include cost of conversion and
other costs incurred in bringing the
inventories to their present location
and condition.

15 Investments

Investments, which are readily
realizable and intended to be held for
not more than one year from the date

on which such investments are made,
are classified as current investments.
All other investments are classified as
long-term investments. Mutual Funds
are stated at Cost i.e Invested Value.
Non-current investments are carried
at cost less any other-than-temporary
diminution in value, determined
on the specific identification basis.
Profit or loss on sale of investments
is determined as the difference
between the sale price and carrying
value of investment, determined
individually for each investment.
Cost of investments sold is arrived
using average method.

16 Research And Development
Expenses

Revenue expenditure on R&D is
charged to Profit and Loss account
as incurred. Capital expenditure on
assets acquired for Research and
development is added to PPE and
expenditure incurred on product
development is capitalised and
amortized over the period of 5 Years
from the date of Capitalisation.

17 Warranty

Provision is made for estimated
warranty claims in respect of product
sold which are still under warranty
at the end of the reporting year.
Management estimates the provision
based on historical warranty claim
information and any recent trends
that may suggest future claims to
differ from historical amounts.

*The Company has issued fresh public issue of 49,86,000 equity shares each Rs. 10/- per equity with
premium of Rs. 85/- per equity

TERMS ATTACHED TO SHARES
Equity Shares

The Equity Shares have a par value of Rs.10/- each. Each holder of equity share is entitled
to one vote per share. The dividend when proposed by the Board of Directors is subject
to the approval of the Shareholders in the ensuing Annual General Meeting. Repayment
of capital on liquidation will be in proportion to the number of Equity Shares held.

a) Term Loans from SBI are secured by

1. Equitable Mortgage by deposit of
title deeds of 6.25 acres of Leasehold
Land situated at Plot #79 & 3.80acres
of Leasehold Land at Plot # 80,
EPIP, Sipcot Industrial Complex,
Gummidipoondi.

2. Equitable Mortgage over
superstructures constructed on
Leasehold Land mentioned above.

3. Hypothecation of Plant & Machinery
created/ to be created out of term

loans.

a. The Term Loans from SBI are also
collaterally secured by:-

4. Hypothecation of movable fixed
assets belonging to Mixing division.

5. Equitable Mortgage by deposit of title
deeds of3380 sqft land and residential
house thereon situated at #3, Ninth
Lane, Shastri Nagar, Adyar, Chennai
in the name of Mr V Thirupathi

6. Pledge of 939,500 shares of the face

value of Rs 10/- each of Emerald Tyre
Manufacturers Ltd, owned by Mr V
Thirupathi and his family members.

7. Hypothecation of movable fixed
assets of the company (present &
future).

8. Personal Guarantee of Mr V
Thirupathi, Mrs T Kannaki, Mr V T
Chandrashekharan & Mr V T Srinivas.

b) Bank Borrowings are secured
by way of hypothecation of
all the Current Assets of the
company. The above loans are
additionally secured by the
collateral securities given to the
Term Loans provided by the bank.
The loans are also secured by
the Personal Guarantees of Mr V

Thirupathi, Mrs T Kannaki, Mr V T
Chandrashekharan& V T Srinivas.

c) Equipment Finance from
Tata Capital Financial Services
Limited (TCFSL) are secured by,
Hypothecation of Machinery
Purchased out of TCFSL Fund
and unconditional &irrevocable
personal guarantees of Mr V
Thirupathi, Mrs T Kannaki and Mr
V T Chandhrasekharan.

d) Samunnati Finance & RAR
Finance : Subservient charge on
all present and future current
and fixed assets of the company
& Personal Guarantees of Mr V
Thirupathi, Mrs T Kannaki, Mr V
T Chandhrasekharan and Mr V T
Srinivas.

30 Proposed Dividend Details

The Company has proposed a dividend
of 10% of the Face Value of Rs.10 Per
share during the year which is subject
to the approval of Members at the
ensuing Annual General Meeting to
be held on 12th September 2025.

31 Securities were issued during the year
as mentioned in Note 2 B.

32 The assets other than Property, Plant
and Equipment, Intangible Assets and
non-current investments have a value
which can be realized in the ordinary
course of business and equals to the
amount at which they are stated.

33 Details of Benami Property Held

There are no proceedings initiated
or pending against the Company for
holding any benami property under
the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988).

34 The Company has made borrowings
from the banks on the basis of security
of current assets, and the statements of
current assets as required to be filed by
the Company with banks and financial
institutions are done periodically.
The amounts as per the quarterly
return of inventories and book debts
submitted to the banks were lower
than the amounts as per the books of
account and accordingly did not affect
the drawing power and the required
security cover computed in accordance
with the sanctioned terms.

35 Wilful Defaulter

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

36 Relationship with Struck off
Companies

The Company has not entered into
any transactions with companies
struck off under section 248 of the
Companies Act, 2013.

37 Compliance with Number of Layers
of Companies

The Company has Two wholly owned
subsidiaries namely Emrald Middle
East FZE and Emrald Tyres Europe
BV. WOS are under the exceptions
of layers prescribed under clause
(87) of section 2 of the Act read with
Companies (Restriction on number of
Layers) Rules, 2017 are not applicable.

38 Compliance with Approved
Scheme(s) of Arrangements

No Scheme of Arrangements has
been approved by the Competent
Authority in terms of sections 230 to
237 of the Companies Act, 2013.

39 Utilisation of Borrowed Funds and
Share Premium

A. The company has not advanced
or loaned or invested funds (either
borrowed funds or share premium or
any other sources or kind of funds) to any
other person(s) or entity(ies), including
foreign entities (Intermediaries) with
the understanding (whether recorded
in writing or otherwise) that the
Intermediary shall

(i) directly or indirectly lend or
invest in other persons or
entities identified in any manner
whatsoever by or on behalf of the
company (Ultimate Beneficiaries)
or

(ii) provide any guarantee, security
or the like to or on behalf of the
Ultimate Beneficiaries.

B. The Company has not received any
fund from any person(s) or entity(ies),
including foreign entities (Funding
Party) with the understanding
(whether recorded in writing or
otherwise) that the company shall

(i) directly or indirectly lend or
invest in other persons or
entities identified in any manner
whatsoever by or on behalf of
the Funding Party (Ultimate
Beneficiaries) or

(ii) provide any guarantee, security or
the like on behalf of the Ultimate
Beneficiaries.

42 No amounts have been set aside or
proposed to be set aside to reserve to
meet any specific liability, contingency
or commitment known to exit at the
date as at which balance sheet made
up.

43 Undisclosed Income: There are no
transactions that were not recorded
in the books of account, and which
has been surrendered or disclosed
as income during the year in the tax
assessments under the Income Tax
Act, 1961 (43 of 1961).

There is no previously unrecorded
income and related assets have been
recorded in the books of account
during the year.

44 Details of Crypto Currency or Virtual
Currency: The Company has not
traded or invested in Crypto currency
or Virtu al Cu rren cy d u rin g th e
financial year.

45 Dues to Micro, Small and Medium
Enterprise (MSME): The dues towards

micro, small and medium enterprises
have been disclosed in the scheduled
to balance sheet.

46 Registration of Charges or Satisfaction
with registrar of Companies : There
are no charges or satisfaction yet
to be registered with Registrar of
Companies beyond the statutory
period except for vehicle loans
availed by the Company for which
the company has filed compounding
application under the provisions of
the companies act, 2013.

47 Disclosure of related parties/
related party transactions pursuant
to Accounting Standard (AS) - 18
“Related Party Disclosures”

The company has entered into
following related party transactions
for the periods covered under audit.
Such parties and transactions are
identified as per accounting standard
18 issued by Institute of Chartered
Accountants of India.

50 Cash Flow Statement

(1) The amount of significant cash and
cash equivalent balances held by the
enterprise as at March 31, 2025 was
Rs.1048.39 Lakhs that are available
for use by Company excluding fixed
deposits under lien.

(2) Company does not have undrawn
borrowing facilities that may be
available for future operating
activities.

(3) The Company has appropriate amount
of Cash Flows that are required to
maintain operating capacity.

(4) Company is investing adequately
in the maintenance of its operating
capacity.

(5) There are no non cash transactions
happened in investing and financing
activities to be excluded from Cash
Flow Statement.

51 Changes in Accounting Policies

There are no changes in Accounting
policies made by the Company for the
year ended 31st March 2025.

52 Disclosures on Property, Plant and
Equipment and Intangible Assets

I. Property, Plant and Equipment

(1) There is no restriction on the title
of Property, Plant and Equipment,
subject to only those which are
under hypothecation/ charge.

(2) Company has contractual
commitments for the acquisition
of Property, Plant & Equipment,
Please refer Note No. 29.

(3) Company has no Impairment loss
during the period for Property,
Plant & Equipment.

(4) Assets are periodically checked
for active usage and those which

are retired are written off.

(5) There are no temporarily idle
property, plant and equipment.

(6) Intangible asset is amortised as
per Schedule II.

(7) The carrying amount and
remaining amortization period
of any individual intangible asset
are not material to the financial
statements of the enterprise as a
whole.

(8) There are no amounts of
intangible assets whose title
is restricted and the carrying
amounts of intangible assets
pledged as security for liabilities.

(9) The company has capital work-
in-progress for machinery and
ageing is represented below.

See accompanying notes to the Financial Statements
In terms of our Report Attached

F₀r Rajani & Co For and on Behalf of the Board of Directors of

Chartered Accountants Emerald Tyre Manufactures Limited

Firm Registration No.003433S CIN : L25111TN2002PLC048665

^{Mahesh Jain} V T Chandhrasekharan D Eswarakrishnan

^Partner Managing Director Whole Time Director

^Membership ^N°. ²²⁹⁸⁸¹ DIN:00628816 DIN:01739106

UDIN: 25229881BMGPZR7882

Pl_{ace :} Ch_ennai ^V Krishnaram S Shankar Ganesh H Narayanarao

Date _: 29th May 2025 Chief Executive Officer Chief Financial Officer Company Secretary