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)