Accounting Policies of Ambo Agritec Ltd. Company

Mar 31, 2025

3. Statement of Significant Accounting Policies

The accounting policies set out below have been applied consistently to the year presented in these financial statements.

Basis of Preparation of Financial Statements:

The financial statements have been prepared to comply in all material aspects with the Generally Accepted Accounting Principles in
India (Indian GAAP), including the Accounting Standards prescribed under section 133 of the Companies Act, 2013 (Act) read with
Rule 7 of the Companies (Accounts) Rules, 2014, the provisions relating to the Act (to the extent notified) and other accounting
principles generally accepted in India, to the extent applicable. The financial statements are prepared on accrual basis under the
historical cost convention. The financial statements are presented in Indian rupees. The financial statements are prepared under
Division I of the Schedule III of the Companies Act, 2013.

The financial statements are presented in Indian rupees, which is the functional currency of the country and all values are rounded
off to Lacs except when otherwise indicated. The accounting policies adopted in the preparation of financial statements are
consistent with those of previous year.

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make judgments, estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial
statements and the reported amount of revenues and expense during the reporting period. Accounting estimates could change from
one period to another. Actual results could differ from those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods as and when the Management becomes aware of the changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the year in which the changes are made and, if material, their effects
are disclosed in the notes to the financial statements.

Operating Cycle

Based on the nature of products/activities of the company and the normal time between acquisition of assets and their realization in
cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets
and liabilities as current and non current.

Current and Non-Current Assets:

All assets and liabilities are classified into current and non-current.

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realized within 12 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at-least 12 months after the
reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The Company does not have an unconditional right to defer settlement of the liability for atleast 12 months after the reporting
date.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Property, Plant and Equipment and Depreciation:

Property, plant and equipment are carried at cost of acquisition or construction net of recoverable taxes, trade discounts and rebates
less accumulated depreciation and/or accumulated impairment loss, if any. The cost of an item of property, plant and equipment
comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of
bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the
purchase price. Subsequent expenditures related to an item of property, plant and equipment (except land) are added to its book
value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. The
valuation and recognition is done by keeping in view the provisions of the Accounting Standard 10 on “Accounting for Property,
Plant and Equipment”. None of Fixed Assets have been revalued during the Year.

Depreciation on Tangible Fixed Assets has been provided on Written down Value Method over the useful lives of Assets as
prescribed in Schedule II of the Companies Act, 2013. Depreciation for Assets purchased/sold during a period is proportionately
charged.

Property, plant and equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its
use and disposal. Losses arising from retirement or gains or losses arising from disposal of property, plant and equipment which are
carried at cost are recognized in the Statement of Profit and Loss.

Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss if any is charged
to the Profit & Loss Account in the year in which as the asset is identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there has been a change in the estimate of recoverable amount.

The company found no indication that any asset may be impaired. Therefore, there was no need to determine impairment Loss.
Inventories:

Stock of Raw Materials, Stores and spare parts are valued at cost and Direct Expenses; and of those in transit, at port and at Bonded
Warehouse related to these items are valued at cost to date.

Goods-in-process is valued at cost of materials and direct expenses incurred for production of the goods till that stage.

Stock of Finished goods and semi-finished goods are valued at cost or net realizable value whichever is lower.

Waste and scraps are accounted at estimated realizable value.

Cost of inventories is generally ascertained on the ‘FIFO basis. Goods-in process, finished and semi-finished goods are valued on
absorption cost basis.

Retirement and Other Employee Benefits:

Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee
benefits. These benefits include salaries and wages, bonus and ex-gratia.

Defined Contribution plan

Defined Contribution plan such as provident fund, employee state insurance scheme are charged to the Statement of Profit and Loss
as incurred. The Company has no obligation, other than the contribution payable to these funds/schemes. The Company recognizes
contribution payable to these funds/schemes as an expense, when an employee renders the related service for that period.

Defined benefit plans

The Company provides for gratuity, a defined benefit plan covering eligible employees. The gratuity plans provides lump sum
payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount base on the respective
employees base salary and the tenure of employment. A provision for gratuity liability to the employee is made on the basis of
actuarial valuation determined using the projected unit credit method.

Construction Contracts:

This Standard is not applicable to our Company.

Investments:

Investments which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises of purchase price and directly acquisition charges
such as brokerage, fees and duties.

Long -term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than
temporary in the value of the investments. On disposal of investments, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit & loss.

Recognition of Revenue and Expenditure:

Revenue Recognition: Revenue is recognized as and when the economic benefits will flow to the company.

Sale of Goods:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to
the buyer, usually on delivery of the goods, The Company collects GST on behalf of the government and, therefore, these are not
economic benefits flowing to the Company. Hence, they are excluded from Revenue.

Interest:

Interest benefits are recognized on a time proportion basis taking into account the amount outstanding and the applicable interest
rate. Interest income is included under the head “Other Income” in the statement of Profit and Loss.

All other Income and Expenditure to the extent considered receivable and payables unless specifically stated are accounted for on
accrual and prudent basis.

Foreign Currency Translation:

Initial recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign currency at the date of the transaction. The rate of conversion used
is the rate prescribed by the CBEC.

Conversion: Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non¬
monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange
rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a
foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences: The transactions in foreign exchange are accounted at the exchange rate prevailing on the date of the
transaction. Assets & liabilities denominated in foreign currency are restated at the year end adopting the contracted/ year end rates
as applicable. Any exchange gains or losses arising out of subsequent fluctuations are accounted in the Profit & Loss Statement.

Translation of foreign exchange transaction: Company follows AS - 11 (Revised) in respect of Foreign Currency Transaction
applying the principle of most likely realizable/disbursable amount.

Forward Contracts: The Company has not entered into any forward contracts in order to hedge its foreign currency exposures.
Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted number
of equity shares outstanding during the period is adjusted for events that have changed the number of equity shares outstanding,
without a corresponding change in resources.

Accounting for Taxes on Income:

Tax expense comprises of Current Tax and Deferred Tax. Current Tax is measured as the higher of the amount expected to be paid
to the tax authorities, using the applicable tax rates and Minimum Alternate Tax Calculated on the Book Profits.

Deferred Income Tax reflect the current period timing differences between taxable income and accounting income for the period
and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a
reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed
depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the
same.

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Mar 31, 2024

Data Not Available

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Mar 31, 2023

2. Significant accounting policies

The accounting policies set out below have been applied consistently to the period presented in tlanfcaaFin statements .

Accounting Convention:

The financial statements have been prepared to comply in all material aspects with the Generally Accepted Account Principles in India (Indian GAAP), including the Accounting Standards prescribed under sBBt if the Companies Act, 20B (Act) read with Rule 7 of the Companies (Accounts) Rules, 204, the provisions relating to the Act (to thi extent notified) and other accounting principles generally accepted in India, to the extent applicable. The financi statements are prepared on accrual basis under the historical cost convTiteoninancial statements are presented in Indian rupees. The financial statements are prepared under Division I of the Schedule III of the Companies Act, 201 The financial statnents are presented in Indian rupees, which is the functional currency of the country and all val are rounded off to Lacs except when otherwise indicated.

The accounting policies adopted in the preparation of financial statements are consistenhcwithftprevious year Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make judgme estimates and assumptions that affect the reported amounts of assets and liabilities, disclosuregfcontmlities as at the date of the financial statements and the reported amount of revenues and expense during the reporting pe Accounting estimates could change from one period to anotMeertual results could differ from those estimates. Any revision to accounting estimates is recognized prospectyviri current and future periadsand when the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected ii period in which the changeare made and, if material, their effects are disclosed in the notes to the financial st atemer

Operating Cycle

Based on the nature of products/activities of the company and the normal time between acquisition of assets and t realization in cash ocash equivalents, the company has determined its operating cycle as 2 months for the purpose of classification of its assets and liabilities as current and non current.

Current and Non-Current Assets:

All assets and liabilities are clifsed into current and n-cuirrent .

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realized in, or is intended for sale or consumption in, the Company''s normal opychting

b) It is eld primarily for the purpose of being traded;

c) It is expected to be realized within 2 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liabjMtiytfor at months after the reporting date.

Current assets include the current portion ofuronent financial assets. All other assets are classified-aurmemt . Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Company''s normal operating cycle;

b) It is held primarily for the purpose of being tr aded;

c) It is due to be settled within E months after the reporting date; or

d) The Company does not have an unconditional right toirdefettlement of the liability for atleast E months after the reporting date .

Current liabilities include current portion ofcnonent financial liabilities. All other liabilities are classified as non current .

Deferred tax assets and liabilities clas sified as no-current assets and liabiliti es.

Property, Plant and Equipment:

Property, plant and equipment are carried at cost of acquisition or const mectiffirecoverable taxes, trade discounts and rebatesl ess accumulated depreciationnd/or acumulated impairment loss, if any. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and otharefurndable taxes or levies and any directly attributable cost of bringing the asset to its woKkidigion for its intended use; any trade discounts and rebates are deducted in arriving at the purchase pSides equent expenditures related to an item of property, plant and equipment (except land) are added to its book value only if they increase ruth® efbenefits from the existing asset beyond its previously assessed standard of performaiThe valuation and recognition is done by keeping in view the provisions of the Accounting Standard 10 on “Accounting for Property, Plant and EquipmentNone of F ixed Assets have been revalued during the Ye ar.

Depreciation on Tangible Fixed Assets has been providedWn itten down Valu Method over the useful lives of Assets as prescribed. Schedule II of the Companies Act, 20B. Depreciation for Assets purchase during a period is proportionately charge d.

Property, plant and equipment is eliminated from the financial statements on disposal or when no further benef expected from its usand disposal.

Losses arising from retirement or gains or lossssrgufrom disposal of property, plant and equipment which are carried at cost ainecognized in the Statement of Profit and Loss.

Impairment of Assets:

At each balance sheet date, the Company reviews the carrying amount of its fixsdtasdetermine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount c assets is estimated in order to determine the extent of impairment loss. Recoverable amountgferthis ani asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from continuing use of the assets and from its disposal are discounted to their present value using discount rate that reflects the current market assessments of time value of money and the risks specific to the assets.

Inventories:

Inventoriescomprise of Raw Materials, Finished Goods and Traded Gonad are carried at the loweof cost and net realizable value. Costof inventories comprises all costs of purchase and other costs incurred in bringing the inventor to their present location and conditiohaluation of inventories is done on a F irst in F irst Out (FIF O) basis.

Employee Benefits:

Employee benefits payablewholly within twelve months of receiving employee services are classified as-tshont employee benefits. These benefits include salaries and wages, bonus angTexia .

Post employment and other long term employee benefits are recognized as an exjsert&as profit & loss account for the year in which the liabilities are crystallized except provision for gratuity.

Investments:

Investments which are readily realizable and intended to be held for not more than one year from the date on which investments are made, are classified as current investments. All other investments are classified as long t investments.

On initial recognition, all investments are measured at cost. The cost comprises of purchase price and dire acquisition charges suchs brokerage, fees and duties.

Long -term investments are carried at cost. However, provision for diminution in value is made to recognize a decl other than temporary in the value of the investments. On disposal of investments, the differenceitbetwenying amount and net disposal proceeds is charged or credited to the statement of profit & loss.

Recognition of Income And Expenditure:

Revenue Recognition:

Revenue is recognized as and when the economic benefits will flow to the company.

Sale of Goods:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods h been passed to the buyer, usually on delivery of the goods, The Company colGStT on behalf of the government and, therefore, th® are not economic benefits flowing to the Company. Hence, they are excluded from ReCVDe . and Additional Duty deducted from revest (Gross) is the amount thatinisluded in the Revenue (Gros s)

Export Benefits:

Export benefits are recognized on attar basis as per schemes specified in Foreign Trade Policy, as amended from time to time .

Interest:

Interest benefits are recognized on a time proportion basis taking into account the amount outstanding and applicable interest rate. Intslrmcome is included under the head “Other Income” in the statement of Profit and Loss.

All other Income and Expenditure to the extent considered receivable and payables unless specifically stated £ accounted for on accrual and prudent basis.

Foreign Currency Translation:

Initial recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the for currency amount the exchange rate between the reporting currency and the foreign currency at the date oi transacion. The rate of conversion used is the rate prescribed by the CBEC.

Conversion: Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting Non-monetary items, which are measured in terms of historicakteurnsminated in a foreign currency, are reported using the exchange rate at the date of the transactionmNnatary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange the date when such value was determined.

Exchange differences: The transactions in foreign exchange are accounted at the exchange rate prevailing on the da of the transaction. Assets & liabilities denominated in foreign currency are restatedyedr thnd adopting the contracted/ year end rates as applicable. Any exchange gains or losses arising out of subsequent fluctuations accounted in the Profit & Loss Statement.

Translation of foreign exchange transaction: Company follows AS- II (Revi sed) in respect of cFeign Currency Transaction applying the principle of most likely realizable/disbursable amount.

Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to dqoliler shar (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. weighted number of equity shares outstanding during the period is adjusted for events that have changed the number equity shires outstanding, without a corresponding change in resources.

Accounting for Taxes on Income:

Tax expense comprises of Current Tax and Deferred Tax. Current Tax is measured as the higher of the amount ex to be paid to the tax authorities, using applicable tax rates and Minimum Alternate Tax Calculated on the Book Profits .

Deferred Income £x reflect the current period timing differences between taxable income and accounting income f( the period and reversal of timing differences of earliers /yearod. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax in case there are unabsorbed depreciation or losses, are recognized rie th evirtual certainty that sufficient future taxable income will be available to realize the same.