Accounting Policies of Ambassador Intra Holdings Ltd. Company

Mar 31, 2025

Note 1: Significant Accounting Policies followed by the Company

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical
cost convention on the accrual basis except for certain financial instruments which are measured at fair values. The Ind
AS are prescribed under Section 133 of the Companies Act, 2013 (''the Act") read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 as amended

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to an existing accounting standard require a change in accounting policy hitherto in use.

These Financial Statements are presented in Indian Rupees (''). which is also the Company’s functional currency and all
values are rounded to the nearest rupees, except when otherwise indicated.

The Company follows the mercantile system of accounting and recognizes incomes and expenditures on accrual basis.
The accounts are prepared on historical cost basis, as a going concern, and are consistent with accounting principles
generally accepted in India

All the assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle.
Based on the nature of the products and the time between the acquisition of assets for processing and their realization in
cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/
non-current classification of assets and liabilities

CURRENT VERSUS NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is
treated as current when it is:

Expected to be realised or intended to be sold or consumed in normal operating cycle
Held primarily for the purpose of sale/lease

Expected to be realised within twelve months after the reporting period, or

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period
All other assets are classified as non-current
A liability is current when:

It is expected to be settled in normal operating cycle
It is held primarily for the purpose of sale/lease

It is due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period

The Company classifies all other liabilities as non-current

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle."

USE OF ESTIMATES

The preparation of the Financial statements in conformity with Ind AS requires the management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. The application of accounting
policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions
in these financial statements have been disclosed below. Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates.
Changes in estimates arc reflected in the financial statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.

KEY ASSUMPTIONS

(a) Property, Plant and equipment

Freehold land, if any is carried at historical cost All other items of Property'', plant and equipment are shown at cost
less accumulated depreciation and impairment, if any. The cost of an item of property'', plant and equipment
comprises its cost of acquisition inclusive of inward freight, duties and other non refundable taxes or levies and
any cost directly attributable to the acquisition of those items.

Depreciation on Property, Plant & Equipment is charged on Straight Line Method. Depreciations are charged
over the estimated useful lives of the assets as specified in Schedule II of the Companies Act, 2013. Depreciation
in respect of additions to/and deletion from assets has been charged on pro-rata basis from/till the date they are
put to commercial use.

(b) Employee Benefits
Provident Fund:-

The management is of the opinion that Provident Fund is not applicable to the Company as number of employees is less than
that as required by law.

Gratuity:-

The provision of gratuity is not made by the Company. However, if payment on account of gratuity arises due to happening of
any incidents as provided under the applicable provisions of law, the same will be accounted for on cash basis.

Pension:-

The management is also of the opinion that the payment under Pension Act is not applicable to the Company.

(c) Impairment of assets and investments

Significant judgments is involved in determining the estimated future cash flows from the investment, property plant and
equipment to determine its value in use to assess whether there is any impairment in its carrying amount as reflected in the
Financials.

FOREIGN CURRENCY TRANSACTIONS
Initial recognition

On Initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the
exchange rate between the functional currency and the foreign currency at the date of the transaction

Subsequent Recognition

As at the reporting date, non-monetary items Which are carried in terms of historical cost denominated in a foreign
currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency arc reported using the exchange rates that existed
when the values were determined. All monetary assets and liabilities in foreign currency are reinstated at the end of
accounting period, Exchange differences on reinstatement of all monetary Items are recognised in the statement of Profit
and loss.

REVENUE RECOGNITION

Revenue Is recognised when control of the goods or services are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods or services, regardless of when the
payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment. The Company Is the principal in all of its revenue arrangements since it is the primary
obligor in all the revenue arrangements as it has pricing latitude and Is also exposed to inventory and credit risks. However,
Goods and Services tax (GST) are not received by the Company on Its own account. Rather. It Is tax collected on value added to
the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

SALE OF GOODS

Revenue from sales Is recognised when the substantial risks and rewards of ownership ol goods are transferred to the
buyer and the collection of the resulting receivables is reasonably expected. Revenue from the sale of goods is measured
at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume
rebates.

SALE OF SERVICES

The Company recognises revenue when the significant terms of the arrangement are enforceable, services have been
delivered and the collectability is reasonably assured.

Other Income:

Interest

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably. Interest income is accrued on a time basis. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable.

TAXATION

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss
for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the relevant
prevailing lax laws.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax
assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that
Sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and
liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet
date. At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts
and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are
offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the
deterred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws

PROPERTY. PLANT AND EQUIPMENT

The cost of property, plant and equipment comprises Its purchase price net of any trade discounts and rebates, any Import
duties and other taxes (other than those subsequently recoverable from the lax authorities), any directly attributable
expenditure on making the asset ready lor its intended use. including relevant borrowing costs for qualifying assets and any
expected costs of decommissioning. Expenditure incurred alter the properly, plant and equipment have been pul into operation,
such as repairs and maintenance, are charged to the Statement of Profit and Loss in the period in which the costs are incurred.
Major shut down and overhaul expenditure is capitalised as the activities undertaken Improves the economic benefits expected
to arise from the asset-

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gam or loss arising on the disposal or retirement of an Item of property, |plant and
equipment Is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in
Statement or Profit and Loss.

Property, plant and equipment except freehold land held for use in the production, supply or administrative purposes, are
stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any.

Advances paid towards the acquisition of Property. Plant & Equipment outstanding at each reporting date is classified as Capital
advances under Other Non -Current Assets and assets which are not ready for intended use as on the dale of Balance sheet are
disclosed as "Capital Work in Progress "

Depreciation on Property. Plant & Equipment is charged on Straight Line Method. Depreciations are charged over the estimated
useful lives of the assets as specified in Schedule II of the Companies Act. 2013. Depreciation in respect of additions to/and
deletion from assets has been charged on pro-rata basis from/tlll the date they are put to commercial use.

BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets (assets which require substantial
period of time to get ready for its Intended use) are capitalized as part of the cost of that asset. All other borrowing costs are
charged to the Statement of Profit and Loss for the period for which they are incurred

IMPAIRMENT OF ASSETS

Property, Plant & Equipment are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount
exceeds its recoverable amount. The recoverable amount Is the higher of the asset''s fair value less cost of disposal and value In
use.

INVENTORIES

Inventories are valued at lower of cost and net realizable value. Cost of inventories comprises of purchase cost and other costs
incurred in bringing the inventory to present location and condition which includes appropriate share of overheads. Net
realizable value is the estimated selling price In the ordinary course of business, less the estimated costs of completion and the
estimated costs necessary to make the sale.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand
deposits with banks (other than deposits pledged with government authorities and margin money deposits) with an original
maturity of three months or less.

CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the
effects of transactions 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.

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Mar 31, 2024

“1” SIGNIFICANT ACCOUNTING POLICES:

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical
cost convention on the accrual basis except for certain financial instruments which are measured at fair values. The Ind
AS are prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 as amended.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to an existing accounting standard require a change in accounting policy hitherto in use.

These Financial Statements are presented in Indian Rupees (''), which is also the Company’s functional currency and all
values are rounded to the nearest rupees, except when otherwise indicated.

The Company follows the mercantile system of accounting and recognizes incomes and expenditures on accrual basis.
The accounts are prepared on historical cost basis, as a going concern, and are consistent with accounting principles
generally accepted in India.

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle.
Based on the nature of the products and the time between the acquisition of assets for processing and their realization in
cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non¬
current classification of assets and liabilities

CURRENT VERSUS NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is
treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of sale/lease

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of sale/lease

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period

The Company classifies all other liabilities as non-current

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.”

USE OF ESTIMATES

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. The application of accounting
policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions
in these financial statements have been disclosed below. Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates.
Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.

KEY ASSUMPTIONS

(a) Property, Plant and Equipment

Freehold land, if any is carried at historical cost. All other items of Property, plant and equipment are shown at cost
less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment
comprises its cost of acquisition inclusive of inward freight, duties and other non refundable taxes or levies and
any cost directly attributable to the acquisition of those items.

Depreciation on Property, Plant & Equipment is charged on Straight Line Method. Depreciations are charged
over the estimated useful lives of the assets as specified in Schedule II of the Companies Act, 2013. Depreciation
in respect of additions to/and deletion from assets has been charged on pro-rata basis from/till the date they are
put to commercial use.

(b) Employee benefits:

Provident Fund:-

The management is of the opinion that Provident Fund is not applicable to the Company as number of employees
is less than that as required by law.

Gratuity:-

The provision of gratuity is not made by the Company. However, if payment on account of gratuity arises due to
happening of any incidents as provided under the applicable provisions of law, the same will be accounted for on
cash basis.

Pension:-

The management is also of the opinion that the payment under Pension Act is not applicable to the Company.

(c) Impairment of assets and investments:

Significant judgments is involved in determining the estimated future cash flows from the investment, property plant
and equipment to determine its value in use to assess whether there is any impairment in its carrying amount as
reflected in the financials.

FOREIGN CURRENCY TRANSACTIONS
Initial Recognition:

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the
exchange rate between the functional currency and the foreign currency at the date of the transaction.

Subsequent Recognition:

As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a foreign
currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed
when the values were determined. All monetary assets and liabilities in foreign currency are reinstated at the end of
accounting period. Exchange differences on reinstatement of all monetary items are recognised in the Statement of Profit
and Loss.

REVENUE RECOGNITION

Revenue is recognised when control of the goods or services are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods or services, regardless of when
the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment. The Company is the principal in all of its revenue arrangements since it
is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit
risks. However, Goods and Services tax (GST) are not received by the Company on its own account. Rather, it is tax
collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from
revenue.

Sale of Goods:

Revenue from sales is recognised when the substantial risks and rewards of ownership of goods are transferred to the
buyer and the collection of the resulting receivables is reasonably expected. Revenue from the sale of goods is measured
at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume
rebates.

Sale of Services:

The Company recognizes revenue when the significant terms of the arrangement are enforceable, services have been
delivered and the collectability is reasonably assured.

Other income:

Interest

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis. Interest income
is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

TAXATION

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or
loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the
relevant prevailing tax laws.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred
tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax
assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the

Balance Sheet date. At each Balance Sheet date, the Company re-assesses unrecognized deterred tax assets, it any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised
amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax
liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and
where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing
taxation laws.

PROPERTY, PLANT & EQUIPMENT

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import
duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable
expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and
any expected costs of decommissioning. Expenditure incurred after the property, plant and equipment have been put into
operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss in the period in which the
costs are incurred. Major shut-down and overhaul expenditure is capitalised as the activities undertaken improves the
economic benefits expected to arise from the asset.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of
property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognized in Statement of Profit and Loss.

Property, plant and equipment except freehold land held for use in the production, supply or administrative purposes, are
stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any.

Advances paid towards the acquisition of Property, Plant & Equipment outstanding at each reporting date is classified as
Capital advances under Other Non -Current Assets and assets which are not ready for intended use as on the date of
Balance sheet are disclosed as “Capital Work in Progress.”

Depreciation on Property, Plant & Equipment is charged on Straight Line Method. Depreciations are charged over the
estimated useful lives of the assets as specified in Schedule II of the Companies Act, 2013. Depreciation in respect of
additions to/and deletion from assets has been charged on pro-rata basis from/till the date they are put to commercial use.

BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets (assets which require
substantial period of time to get ready for its intended use) are capitalized as part of the cost of that asset. All other
borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

IMPAIRMENT OF ASSESTS

Property, Plant & Equipment are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of the asset''s fair value less cost of disposal
and value in use.

INVENTORIES

Inventories are valued at lower of cost and net realizable value. Cost of inventories comprises of purchase cost and other
costs incurred in bringing the inventory to present location and condition which includes appropriate share of overheads.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make the sale.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances,
demand deposits with banks (other than deposits pledged with government authorities and margin money deposits) with
an original maturity of three months or less.

CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted
for the effects of transactions 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.