There is a host of other lesser deities which are also emanations of Brahman. Matter is an extension of God - One myth describes God blowing his nose to form the creation. All living things contain atman. Atman is good. It is important to take note of how the Christian notion of sin is handled by Hindus.
Evil is improper behaviour - nothing is evil of itself.
Imagine God as a lump of mercury from which part has been broken away and polluted with matter. A seed germinates when God infuses it with Atman. So the creation is not in the process of divesting itself of sin, but rather of matter. The cycle of existence is described in two different ways. Hindus do not agree on which of these cycles is correct, but then correctness doesn't matter.