Notes to Accounts of Amba Enterprises Ltd.

Mar 31, 2025

2.10 Provisions and Contingencies
General

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed,
for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of
any.

Contingencies :

Contingent liabilities exist when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Group, or a present obligation that arises from past events where it is either not probable that an outflow of resources
will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the
possibility of an outflow of resources embodying economic benefits is remote.

2.11 Cash flow statement

Cash flows are reported using the indirect method, whereby profit or loss before tax is adjusted for the effects of transaction
of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information.

2.12 Earning per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to equity shareholders of the Company

• by the weighted average number of equity shares outstanding during the financial year

b) Diluted earnings per share

• Diluted earnings per share computed using the weighted average number of equity and dilutive equity
equivalent share outstanding during the period.

2.13 Recent Pronouncement

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules, as issued from time to time. During the year ended
March 31, 2025, the MCA has notified amendment to Ind AS 116 - ''Leases''. The amendment did not have any
significant impact on the standalone financial statements of the Company.

A) Securities Premium Reserve:

Securities premium is used to record the excess of the amount received over the face value of the shares. This reserve will be utilised in accordance
with the provision of the Companies Act, 2013.

B) General Reserve :

The general reserve is used from time to time transfer profits from retained earnings for appropriation purpose.There is no policy of regular transfer.

C) Retained Earnings :

Retained earnings are the profits that the Company has earned till date, net-off less any transfers to general reserve, dividends or other distributions
paid to shareholders.

This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

D) Other Comprehensieve Income

This reserve represents the cumulative gains or losses arising from remeasurement of the defined benefit obligation relating to gratuity, as per the
requirements of Ind AS 19 - Employee Benefit.

The Company''s principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to
finance the company''s operations. The company''s principal financial assets include trade and other receivables, investments and cash and cash
equivalents and bank balances other than cash & cash equivalents that are derived directly from its operations.

The Company is exposed primarily to fluctuations in credit, liquidity and market risks, which may adversely impact the fair value of its financial
instruments. The Company has a risk management policy which covers risks associated with the financial assets and financial liabilities. Company''s
overall risk management focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial
performance of the company.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises three types of risk: interest rate risk, currency risk and other risks, such as equity price risk and commodity price risk.

(i) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The
company is not involved in foreign exchange transaction. Hence, There is no foreign currency risk involved.

(ii) Interest Rate Risk

Interest Rate risk is the risk that the fair value of future cashflows of a financial instrument will fluctutae because of changes in Market Interest Rates.
The company''s exposure to the risk of changes in Market Interest Rates relates primarily to the Company''s short term debt obligations with floating
interest rates. The Company manages its interest risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

(iv) Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically
assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts
and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an
ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a
default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

For the purposes of the Company''s Capital Management, capital includes issued capital and all other equity reserves.

The primary objective of the Company''s Capital Management is to maximise shareholder value. The company manages its capital structure and makes
adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The calculation of capital for the purpose of capital management is as follows:

1) Debt equity ratio - Total debt divided by Total equity

The debt-to-equity (D/E) ratio is calculated by dividing a Company s total liabilities by its shareholder equity. The ratio is
used to evaluate a Company''s financial leverage.

40) Leases
Company as Lessee

Land and Building have been taken on lease by the Company. The terms of lease rent are for the period
ranging from 1 year to 5 years depending on the lease agreement with the lessor. Such leases are
renewable by mutual consent. There is no contingent rent, no sub-leases and no restrictions imposed by
the lease arrangements.The Company has not revalued its Right-of-use assets.The borrowing rate

applied to lease liability is 8.90%

Note 43- Audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses
accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit
trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such
changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all the relevant transactions recorded in the software. Further, there are no
instance of audit trail feature being tampered with.

Note 44- Segment Reporting

The Company is engaged only in the business of producing and reselling of Coil, Transformer Lamination Sheet and related products. As
such, there are no separate reportable segments, the disclosure as required as per Indian Accounting Standard on "Operating Segments"
(IND AS - 108) is not given.

Note 45-Other statutory information

1 No proceedings have been initiated or are pending against the Company for holding any benami property under the Prohibition of
Benami Property Transactions Act, 1988 (as amended) and rules made thereunder.

2 The Company do not have any transactions with companies struck off.

3 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

4 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities

⁵ identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or
the like to or on behalf of the Ultimate Beneficiaries.

The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the

⁶ understanding (whether recorded in writing or otherwise) that the Company shall

directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding

i) Party (Ultimate Beneficiaries) or

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

7 The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assements under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961)

8 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017

₉ The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the
Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of
India.

Note 46

Previous year''s figures have been regrouped /rearranged wherever necessary to conform to the current year presentation.

FOR Bilimoria Mehta & Co For AMBA ENTERPRISES LTD.

CHARTERED ACCOUNTANTS

CA Aakash Mehta Mr. Ketan H. Mehta Mrs. Sarika S. Bhise

Partner (Manging Director) (Executive Director & CFO)

M. NO.:165824 DIN-01238700 DIN-06987209

F. M NO : 146249W
PLACE:Mumbai
DATE: 13 May 2025

UDIN: 25165824BMIIGU9931 Mr. Dhirendra Mehta Shriddha Gupta

(Independent Director) (Company Secretary)

DIN- 07891935 (ACS No:49260)

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Mar 31, 2024

*The Company had classified a building premise as asset held for sale at its carrying value Rupees 13 lakhs as at March 31, 2024.

Further, during the current year, the Company has sold a building premise of carrying amount of INR 12.99 Lakhs. Accordingly, the remaining premise is presented as a disposal group held for sale.Efforts to sell the disposal group is ongoing and expected to complete by March,2025

Note: No amount is receivable from directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member

Note: The Company uses a provision matrix to determine impairment loss allowance on the portfolio trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates. At period end, the historical observed default rates are updated and changes in the forward looking estimates are analyzed.

b) Terms / Rights Attached to Equity Shares

The Company has only one class of equity shares having face value of INR 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend if any in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and Purpose of Reserve:

A) Securities Premium Reserve:

Securities premium is used to record the excess of the amount received over the face value of the shares. This reserve will be utilised in accordance with the provision of the Companies Act, 2013.

B) General Reserve :

The general reserve is used from time to time transfer profits from retained earnings for appropriation purpose.There is no policy of

C) Retained Earnings :

Retained earnings are the profits that the Company has earned till date, net-off less any transfers to general reserve, dividends or other distributions paid to shareholders.

This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

D) Changes in equity instrument :

Changes in equity instrument, represents reserves created in respect of investment in unquoted equity shares carried at Fair Value Through Other Comprehensive Income.

a) Working Capital facility from bank and other financial institutions includes channel financing facility from Yes Bank and Axis Bank at the effective rate on Interest 8.90% p.a. such facility is availed for the purchases with JSW Steel and on letter of recommendation from JSW Steel Ltd.

b) The company has not defaulted in the payment of interest and installment of the loans as at 31st March 2024.

34) Commitment and contingencies

There are no contingent liabilities and commitment as on 31st March 2024.

35) Financial Instruments- Fair Values And Risk Management

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets, financial liabilities and equity instrument are disclossed in note 2.3 to the financial statements.

36) Financial Risk Management

The Company''s principal financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the company''s operations. The company''s principal financial assets include trade and other receivables, investments and cash and cash equivalents and bank balances other than cash & cash equivalents that are derived directly from its operations.

The Company is exposed primarily to fluctuations in credit, liquidity and market risks, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which covers risks associated with the financial assets and financial liabilities. Company''s overall risk management focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on t h e financial performance of the company.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other risks, such as equity price risk and commodity price risk.

(i) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company is not involved in foreign exchange transaction. Hence, There is no foreign currency risk involved.

(ii) Interest Rate Risk

Interest Rate risk is the risk that the fair value of future cashflows of a financial instrument will fluctutae because of changes in Market Interest Rates. The company''s exposure to the risk of changes in Market Interest Rates relates primarily to the Company''s short term debt obligations with floating interest rates. The Company manages its interest risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

(iii) Commodity Price Risk

The Company is affected by the price volatility of it''s commodities. It''s operating activities require the on-going purchase or continuous supply of raw materials. Therefore, the company monitors its purchases closely to optimize the price.

(iv) Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

Trade receivables are non-interest bearing. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data of expected credit loss, actual credit loss and party-wise review of credit risk

(v) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

37) Capital Management

For the purposes of the Company''s Capital Management, capital includes issued capital and all other equity reserves.

The primary objective of the Company''s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The calculation of capital for the purpose of capital management is as follows:

1) Debt equity ratio - Total debt divided by Total equity

The debt-to-equity (D/E) ratio is calculated by dividing a Company''s total liabilities by its shareholder equity. The ratio is used to evaluate a Company''s financial leverage.

39) Leases Company as Lessee

Land and Building have been taken on lease by the Company. The terms of lease rent are for the period ranging from 1 year to 5 years depending on the lease agreement with the lessor. Such leases are renewable by mutual consent. There is no contingent rent, no sub-leases and no restrictions imposed by the lease arrangements.The Company has not revalued its Right-of-use assets.The borrowing rate applied to lease liability is 8.90%

The Company had total cash outflows for leases of INR 38.20 lakhs (31st March 2023: INR 33.30) during the financial year ended 31st March 2024.

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields/ rates available on applicable bonds as on the current valuation date

The salary growth rate indicated above is the Company''s best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, senority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

(iii) Sensitivity Analysis

Significant actuarial assumptions for the detemination of the defined benefit obligation are discount rate, expected

salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:

Note 42- Audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all the relevant transactions recorded in the software. Further, there are no instance of audit trail feature being tampered with.

Note 43- Segment Reporting

The Company is engaged only in the business of producing and reselling of Coil, Transformer Lamination Sheet and related products. As such, there are no separate reportable segments, the disclosure as required as per Indian Accounting Standard on "Operating Segments" (IND AS - 108) is not given.

Note 44-Other statutory information

1 No proceedings have been initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended) and rules made thereunder.

2 The Company do not have any transactions with companies struck off.

3 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

4 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities

⁵ identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the

⁶ understanding (whether recorded in writing or otherwise) that the Company shall

directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding

_i) Party (Ultimate Beneficiaries) or

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

7 The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assements under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

₈ The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017

The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the

⁹ Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

Note 45

Previous year''s figures have been regrouped /rearranged wherever necessary to conform to the current year presentation.

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Mar 31, 2015

1. Contingent Liabilities:

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

2. CONTINGENT LIABILITIES:

In respect of pending VAT Assessment for the year 2010-11 to 2013-14, the liabilities of VAT Tax including liabilities for penalty / interest has remained to be ascertained. However, according to information and explanations given to us, the following dues of VAT and Income Tax, has not been deposited by the Company on account of disputes

Name of the Amount Period to which Forum where statute (in ') the amount Dispute is relates pending

Assessment Year

Income Tax 1,36,89,070 Commissionser

2009-10, 2012-13 of Income Tax

Assessment Year Dy Comm. of Sales

MVAT Act, 2002 2,12,295

2009-10 Tax Mumbai

3. RELATED PARTY DISCLOSURES:

List of related parties with whom transactions have taken place during the current accounting year and relationship

1. Names of Related Parties :

a. Enterprises significantly influenced: M/s Chhaya Impex by key management personnel

b. Key Management Personnel: Mr. Ketan H Mehta

Ms. Sarika Khandre Mrs Bijal R Shah

c. Relatives of Key Management Personnel Mrs. Vilasben D. Sanjalia

4. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES:

The company has put in place a suitable system for identifying the vendors coming under the purview of the Micro, Small and Medium Enterprises Development Act, 2006. Since the company has not received any information in this regard, from the vendors, disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act could not be ascertained.

5. The Company has not made provision for gratuity as per AS 15 "Employee Benefits". No provision has been considered in accounts towards future payment of gratuity to the employees as the same is proposed to be accounted on cash basis. No provision has been made towards accrued leave wages which is continued to be accounted on cash basis

6. The value of closing stock of raw materials, finished goods and semi finished goods and other inventories has been brought into books on the basis of inventories taken, valued and certified by the director.

7. Balance Sundry Debtors, Sundry Creditors and Customer Advances, Advance to suppliers, Loans, Advances and Deposits are subject to Confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statement on such reconciliation / adjustments.

8. In the opinion of the Board , the current assets, loans and advance are approximately of the valued stated, if realized in the ordinary course of business. The provision of depreciation and all known liabilities are adequate and not in excess of amount reasonably necessary.

9. Previous year's figures have been regrouped/ recast and rearranged whenever considered necessary. These are the notes referred to in our report.

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Mar 31, 2014

NOTES Forming part of the Financial Statements

1) CONTINGENT LIABILITIES:

In respect of pending VAT Assessment for the year 2007-08,10-11 to 2012-13, the liabilities of VAT Tax including liabilities for penalty / interest has remained to be ascertained. However, according to information and explanations given to us, the following dues of VAT, has not been deposited by the Company on account of disputes

2) RELATED PARTY DISCLOSURES:

List of related parties with whom transactions have taken place during the current accounting year and relationship

1. Names of Related Parties :

a. Enterprises significantly influenced: M/s Chhaya Impex by key management personnel

b. Key Management Personnel: Mr. Ketan H Mehta

c. Relatives of Key Management Personnel Mrs. Chhaya K Mehta

3) DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES:

The company has put in place a suitable system for identifying the vendors coming under the purview of the Micro, Small and Medium Enterprises Development Act, 2006. Since the company has not received any information in this regard, from the vendors, disclosure relating to amounts unpaid as at the yearend together with interest paid / payable under this Act could not be ascertained.

4) The Company has not made provision for gratuity as per AS 15 "Employee Benefits". No provision has been considered in accounts towards future payment of gratuity to the employees as the same is proposed to be accounted on cash basis. No provision has been made towards accrued leave wages which is continued to be accounted on cash basis

5) The value of closing stock of raw materials, finished goods and semi finished goods and other inventories has been brought into books on the basis of inventories taken, valued and certified by the director.

6) Balance Sundry Debtors, Sundry Creditors and Customer Advances, Advance to suppliers, Loans, Advances and Deposits are subject to Confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statement on such reconciliation / adjustments.

7) In the opinion of the Board , the current assets, loans and advance are approximately of the valued stated, if realized in the ordinary course of business. The provision of depreciation and all known liabilities are adequate and not in excess of amount reasonably necessary.

8) Previous year''s figures have been regrouped/ recast and rearranged whenever considered necessary.

These are the notes referred to in our report.