EMA India Ltd Directors Report.

To, The Members,

Your directors have pleasure to present the 51st Annual Report of the Company together with the Audited Accounts for the financial year ended on 31st March, 2022.

Financial Results:

The summarized financial results of the Company for the financial year ended 31st March, 2022 as compared to the previous year were as under:

Particulars F.Y. 2021-22 F.Y. 2020-21
Revenue from Operations 0 0
Other Income 2296242 1368659
Total Income 2296242 1368659
Total Expenditure (Excluding Interest, Depreciation and Tax) 5,695,029 4423006
Profit / (Loss) before Interest, Depreciation and Tax (3398787) (3054347)
Less: Finance Costs 0 8703
Less: Depreciation and Amortization Expenses 619226 631232
Profit / (Loss) before Exceptional / Prior Period Items and Tax (4018012) (3694282)
Less: Exceptional Items 0 0
Profit / (Loss) before Tax (4018012) (3694282)
Less: Tax Expenses 0 0
Profit / (Loss) for the year (4018012) (3694282)
Other Comprehensive Income:
Add: Items that will not be reclassified to profit or loss (88632) (347234)
Other Comprehensive Income for the year (88632) (347234)
Total Comprehensive income for the year (4106644) (4041516)

State of Companys Affairs:

The Company has shut down its manufacturing activities which results into uneconomical operations and disposing off the discarded and unviable machines, equipments and other assets of the Company.

During the year under review, your Companys other Income was Rs. 22.96 (Lakhs) as compared to previous year i.e. Rs. 13.69 (Lakhs).

Subsidiaries, Joint Ventures or Associate Companies:

The Company has no subsidiary, joint venture or an associate company. Accordingly, information in prescribed Form AOC-1 is not required.

Material Changes and Commitments:

There have been no material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the Financial Statements relate and the date of this Report.

Change in the Nature of Business:

During the year under review, there were no changes in the nature of business of the Company.

Dividend:

Your directors do not recommend dividend on the equity shares of the Company for the Financial Year 2021-22, due to losses incurred by the Company.

Reserves & Surplus:

The loss of Rs. 40.18 lakhs incurred during the year has been adjusted under the head Reserves & Surplus of the Balance Sheet.

Directors & Key Managerial Personnel:

i) Retirement by Rotation:

Ms. Ranjana Bhargava (DIN: 00234421), Executive Director of the Company, retires by rotation at the ensuing Annual General Meeting of the Company and being eligible, has offered herself for re-appointment and the Board recommends her re-appointment.

Changes in Share Capital, if any

During the year under review, the Authorised Share Capital of the Company was increased from existing Rs. 2,00,00,000 (Rupees Two Crores) divided into 17,50,000 (Seventeen Lakh Fifty Thousand) Equity Shares of Rs. 10/- (Ten) each and 25,000 (Twenty Five Thousand) Preference Shares of Rs. 100/- (Hundred) each by creation of additional 10,00,000 (Ten Lakhs) Equity Shares of Rs. 10/- (Ten) ranking pari passu in all respect with the existing Equity and Preference Shares of the Company to Rs. 3,00,00,000, (Rupees Three Crores Only) divided into 27,50,000 (Twenty Seven Lakhs Fifty thousand) Equity Shares of Rs. 10/- (Rupees Ten) each and 25,000 (Twenty Five Thousand) Preference Shares of Rs. 100/- (Rupees Hundred) each by way of Postal Ballot.

Statutory Auditors & Audit Report:

The tenure of the current statutory auditors i.e. M/s. Rishabh & Co., Chartered Accountants, Kanpur (FRN 010915C), is expiring at the conclusion of this Annual General Meeting, and being eligible they had given consent for their re-appointment as the Statutory Auditors of the Company for a second term of five (5) years till the conclusion of the Annual General Meeting for the financial year (2026-27), subject to the approval of shareholders.

The report of Statutory Auditor does not require any comments from directors as there is no qualification, reservation, adverse remark or disclaimer.

Frauds reported by Auditors:

As per Section 143 of the Act the report of Auditors states that the Company has not committed any frauds during the year.

Details of Loans given, Guarantees given or Investment made covered u/s 186 of the Companies Act, 2013:

During the year under review, there were no loans given, guarantees given or investments made by the Company under Section 186 of the Act.

Borrowings:

During the year under review, due to continued recession in the industry, it was becoming difficult for the Company to bear its day- to- day expenses, hence in order to meet these expenses your Company has taken loan from its Director, Ms. Rakshita Bhargava,.] Declaration as required under the Companies Act, 2013 has been received by the aforementioned Director.

Related Party Transactions:

During the year under review, the Company has not entered into any transactions with related party as per Section 188 of the Companies Act, 2013. Therefore, information in prescribed form AOC-2 is not required.

Deposits:

1. Accepted during the year: NIL

2. Remained unpaid or unclaimed as at the end of the year: NIL

3. If there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved: a. At the beginning of the year: NIL b. Maximum during the year: NIL c. At the end of the year: NIL

Deposits not in compliance with Chapter V of the Act:

The Company has not accepted any deposits covered under the provisions of Section 73 of the Act and the Rules made there under.

Managerial Remuneration:

In terms of the provisions of Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement containing the disclosures pertaining to remuneration and other details is given below:

1. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year

Name of the director Designation DIN Ratio
Ms. Ranjana Bhargava Whole Time Director and CFO 00234421 8.33:1

2. Percentage increase in remuneration of each director, CFO and CS in the financial year:

Name of thedirector/CEO Designation DIN/PAN Percentage increase
Ms. Ranjana Bhargava Whole Time Director and CFO 00234421 NIL
Ms. Namita Sabharwal Company Secretary FVUPS5879D Nil

3. Percentage increase in the median remuneration of employees in the financial year: Nil

4. Number of permanent employees on the rolls of Company: 3

5. The Company is giving statutory increase in average remuneration of workers since the Company is incurring losses.

6. We confirm that the remuneration is as per the remuneration policy of the Company.

7. The Company has no employee including the directors of the Company who are in receipt of remuneration in excess of Rs.8.5 lakh per month or Rs. 102 lakh per annum.

The statement containing names of top ten employees in terms of the remuneration drawn and the particulars of employees as required pursuant to Section 197 (12) of the Act read with Rules 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of the employees of the Company are available for inspection by members. Any member who is interested in obtaining a copy thereof, may write to the Company Secretary at the Registered Office of the Company and the same will be furnished on such request.

Directors Responsibility Statement:

In accordance with the provisions of Section 134(5) of the Act your directors state that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a going concern basis; and

(e) the directors, in the case of a listed company , had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Compliance of Secretarial Standards:

During the financial year under review, the Company has complied with the applicable SS-1 (Secretarial Standard on Meetings of the Board of Directors) and SS-2 (Secretarial Standard on General Meetings) issued by the Institute of Company Secretaries of India and approved by the Central Government.

Declaration by Independent Directors:

The Company has received declaration from all the independent directors of the Company, in accordance with the provisions of Section 149 of the Act and as required under Regulation 16 of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) (“LODR”) Regulations, 2015, names as follows:

1. Mr. Krishna Das Gupta

2. Mr. Mahabir Prasad Sharma

Audit Committee:

As per the Section 177 of the Act, the audit committee consists of the following non-executive directors. The composition of Audit Committee is as under:

Name of the Director Position held in the Committee Category of the Director
Mr. Krishna Das Gupta Chairman Non-Executive Independent Director
Ms. Rakshita Bhargava Member Non-Executive Non Independent Director
Mr. Mahabir Prasad Sharma Member Non-Executive Independent Director

Nomination and Remuneration Committee:

As per the Section 178(1) of the Act, the Companys Nomination and Remuneration Committee comprises of following three Non-executive Directors:

Name of the Director Position held in the Committee Category of the Director
Mr. Krishna Das Gupta Chairman Non-Executive Independent Director
Mr. Mahabir Prasad Sharma Member Non-Executive Independent Director
Ms. Rakshita Bhargava Member Non-Executive Non Independent Director

Stakeholder Relationship Committee:

The members of Stakeholder Relationship Committee are as follows:

Directors Position held in the Committee Designation
Ms. Rakshita Bhargava Chairperson Non-Executive Non Independent Director
Mr. Krishna Das Gupta Member Non-Executive Independent Director
Mr. Mahabir Prasad Sharma Member Non-Executive Independent Director

Role of Nomination and Remuneration Committee:

1. To identify persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal and shall carry out evaluation of every Directors performance.

2. To formulate the criteria for determining qualifications, positive attributes and independence of a Director and recommend to the Board a policy, relating to the remuneration for the Directors, Key Managerial Personnel and other employees.

3. The Committee shall ensure that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate Directors of the quality required to run the Company successfully and relationship of remuneration to performance is clear and meets appropriate performance benchmarks.

4. The Committee shall ensure that the remuneration to Directors, Key Managerial Personnel and senior management involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the Company and its goals.

5. Discharge such other function(s) or exercise such power(s) as may be delegated to the Committee by the Board from time to time and make reports to the Board as appropriate.

6. Such other work and policy, related and incidental to the objectives of the committee as per provisions of the Act and rules made there under.

Remuneration Policy:

1. The remuneration paid to Executive Directors is recommended by the Nomination and Remuneration Committee and approved by the Board in Board Meeting, subject to the subsequent approval of the shareholders at the General Meeting and such other authorities, as may be required. The remuneration is decided after considering various factors such as qualification, experience, performance, responsibilities shouldered, industry standards as well as financial position of the Company.

2. The Non-Executive Directors are paid remuneration by way of Sitting Fees. The Non-Executive Directors are paid sitting fees for each meeting of the Board of Directors attended by them.

Annual Evaluation of Board of its own performance, of its Committees and Individual Directors:

The Company has established a framework for performance evaluation in line with applicable regulatory provisions and in compliance with the Act and the performance evaluation of the Board and its Committees were carried out during the year under review.

The evaluation was made in the overall context of the effectiveness of the Board and the respective Committees in providing guidance to the operating management of the Company, level of attendance in the Board/Committee meetings, constructive participation in the discussion on the agenda items, effective discharge of the functions and roles of the Board/ Committees. A detailed discussion followed on the basis of the aforesaid criteria and the Board collectively agreed that the Board and all its Committees fulfilled the above criteria and positively contributed in the decision making process at the Board/Committee level.

The Board has evaluated the performance of all the individual directors on the basis of evaluation criteria specified in the Nomination and Remuneration policy of the Company.

The Nomination and Remuneration Committee has reviewed the performance of all the individual directors (Independent Directors, Non-Independent Directors and the Chairperson of the Company) based on their knowledge, level of preparation and effective participation in meetings, understanding of their role as Directors, etc.

The Independent Directors of the Company have also reviewed the performance of the Non- Independent Directors and the Board as whole. Structured questionnaires were evolved and used by the reviewers to assess Board effectiveness and for evaluation of Non-Independent Directors, Independent Directors and the Committees. The Board would use the results of the evaluation process to improve its effectiveness in the best interest of the Company.

Corporate Social Responsibility:

The provisions of Corporate Social Responsibility under the Act are not applicable to the Company.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo:

A) Conservation of Energy:

The operations of the Company are not energy intensive therefore no capital investment has been made on energy conservation equipments during the year. The Company has endeavored to conserve energy consumption, wherever feasible and has not utilized alternate sources of equipments.

B) Technology Absorption:

No new technology has been imported during last 7 years. However, the technology for Transistorized Converters, other equipments and parts of Induction Heating Machines imported has been fully absorbed.

C) Foreign Exchange Earnings and Outgo:

The details of earnings and outgo in foreign exchange are as under:

1. Foreign exchange outflows: Rs. NIL (previous year Nil)

2. Foreign exchange inflows: NIL (previous year NIL)

Weblink of Annual Return:

A weblink of Annual Return for the financial year ended March 31, 2022, in Form MGT 7 as required under Section 92 (3) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014 is available on the website of the Company at the link www.eiltd.info

Details of Board Meeting Held during the Year:

No. of Board Meetings held during the year: 5

Date of Board Meeting 08.06.2021 24.06.2021 29.07.2021 28.10.2021 01.02.2022
No. of directors present 4 4 4 4 4

Secretarial Audit Report: th

Pursuant to the provisions of Section 204(1) of the Act read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company had appointed Mr. Awashesh Dixit, Company Secretary in Practice (CP. No. 15398), Kanpur as the Secretarial Auditor, for conducting the Secretarial Audit of the Company and had furnished his report to the Board.

The Secretarial Audit Report forms part of this Report as ANNEXURE-A. There were no qualifications or observations or other remarks made by the Secretarial Auditor on the audit conducted by him in his Report for the year under review.

Internal Auditor:

During the year under review, M/s. Shishir Saxena and Co., Chartered Accountants, having office at 5 Floor, Gopala Chambers, 14/123, Parade, Kanpur (U.P.) 208001, continued to act as the Internal Auditor of the Company.

Vigil Mechanism:

As per Section 177(9) and (10) of the Act, the Company has established Vigil Mechanism for directors and employees to report genuine concerns and made provisions for direct access to the Chairperson of the Audit Committee.

Adequacy of Internal Financial Controls:

The Company has, in all material respects, an adequate system of internal controls over financial reporting and such internal controls over financial reporting were operating effectively as at 31st March, 2022.

Management Discussion and Analysis Report:

The Company is facing losses from the last few years, due to continued recession in the industry.

Significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Companys operations in future:

There are no significant and material orders passed by the Regulators or Courts or Tribunals which may impact the going concern status and Companys operations in future.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

The Company has in place an Anti -Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. All employees are covered under this policy and during the year no complaints have been received from them.

Risk Management Policy and Identification of Key Risks:

The Management of the Company has framed risk management policy and identified the key risks to the business and its existence. There are no risks identified that may threaten the existence of the Company.

Maintenance of Cost Records:

The Central Government has not specified maintenance of cost records, for any of the products of the Company, under Section 148(1) of the Act.

Other Disclosures:

a) During the year under review, the Company has not done any issue / buyback of securities, issue of Sweat Equity shares, Bonus Shares or any Employee Stock Option Plan.

b) Complaints received under the provisions of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, received and disposed-off during the year under review: Nil

c) There is no change in the nature of the business of the Company.

d) Application made under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year- None

e) The requirement to disclose the details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof: Not Applicable

Acknowledgement:

Your directors wish to express their grateful appreciation to the continued co-operation received from the Banks, Government Authorities, Customers, Vendors and Shareholders during the year under review. Your directors also wish to place on record their deep sense of appreciation for the committed service of the Executives, Staff and Workers of the Company.

On behalf of the Board
Ranjana Bhargava Rakshita Bhargava
Whole Time Director & CFO Director
DIN: 00234421 DIN: 00234224
Address: 28-Chandra Vihar, Address: 28-Chandra Vihar, Lakhanpur,
Lakhanpur, Kanpur-208002 Kanpur-208002
Place: Kanpur
Date: May 24, 2022