OVERVIEW
The Company is facing financial crunch from the last few years, resulting in no trading activities during the year.
Emmsons International Limited has outstanding liabilities payables to various Banks in borrowings made from the Banks. Company has defaulted in payment of interest and repayment of loans to these banks. Banks have demanded back the loans disbursed to the Company and its subsidiaries but company has no financial means to repay the borrowings. All accounts of the Company and its subsidiaries have been classified as Non-Performing Assets (NPA). The directors of the Company are making best efforts to sell the coal mine in Indonesia owned by step subsidiary M/s PT Bara Energi Makmur Coal Project. It has given to banks to liquidate the coal mine and settle all the debts to the banks. Bank of Baroda has got the mine valued from the International valuer M/s SALVA Mining Consultants. As per valuation report the mine is valued from USD 178 Million to USD 299 Million. If coal mine is liquidated for above amount, all liabilities of the banks shall be settled by payment leaving adequate funds with the management to restart the business activities which are presently closed for scarcity of funds. For these facts, director believe that ,Company has fair chances to restart the business and have prepared the accounts on a going concern basis.
IMPACT ON COMPANYS PERFORMANCE
The Companys core business segment ie, export of Agro Commodities was adversely affected due to financial crunch faced by the Company, also makes addition to it and thus resulted in reduction in turnover and increases in losses for the year.
OUTLOOK
The Company continues to remain positive of a quick recovery in the coming years. The commodity prices are strengthening in the global markets. It should help the Company to recover in the near future.
FINANCIAL PERFORMANCE
The Company has faced tough time during the year. During the financial year 2023-24, on a standalone basis, the Company has earned revenues and there is other Income of Rs. 3.84 lacs represent mainly profit on sale of car. Previous year there was other income of Rs. 1.49 lacs. The netloss of company is Rs. (19107.21) lacs during the year as compared to previous year loss of Rs. (17599.15) lacs.
RISK AND CONCERNS
Since the Company is into trading activity, it is attributed to all the risks and concerns attached with the trading industries as a whole.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Emmsons Board, along with executive and functional leadership provides oversight to identify and understand significant risks. They also put in place systems of risk management, compliance, and control to mitigate these risks.
The Company has proper and adequate internal control system commensurate with the size of the business operations geared towards achieving efficiency in its various business operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations.
HUMAN RESOURCE
The Companys comprehensive HR policy inter-alia provides manpower training and development, keeping in mind the growing requirement for custom trained manpower at its new initiatives. The Companys office is fully computerized. The management interacts regularly with staff members to understand their needs and problems and to create a suitable working environment.
INSURANCE
All assets of the company including stocks have been adequately insured. Insurance claims are very low due to vigorous follow up.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, and other statutes and other incidental factors.
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