Notes to Accounts of TTL Enterprises Ltd.

Mar 31, 2024

(vii) Provisions, contingent liabilities and contingent assets

Provisions are recognised at present value when the Company 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. The expense relating to a provision
is presented in the statement of profit and loss net of any reimbursement. Provisions are
not recognised for future operating losses.

Where there are number of similar obligations, the likelihood that an outflow will be
required in settlement is determined by considering the class of obligations as a whole. A
provision is recognised even if the likelihood of an outflow with respect to any one item
included in the same class of obligations may be small.

The measurement of provision for restructuring includes only direct expenditure arising
from the restructuring, which are both necessarily entailed by the restructuring and not
associated with the ongoing activities of the company.

(viii) Off Setting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the
balance sheet when, and only when, there is a legally enforceable right to offset the
recognized amount and there is intention either to settle on net basis or to realize the assets
and to settle the liabilities simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and
in the event of default, insolvency or bankruptcy of the Company or counterparty.

(ix) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash on hand, other short term, highly liquid investments with original maturities
of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in the balance sheet.

(x) Trade Receivables

Trade receivables are recognized initially at fair value and subsequently measured at
amortized cost using the effective interest method.

(xi) Trade and Other Payables

These amounts represent liability for goods and services provided to the Company prior to
the end of financial year which are unpaid. The amounts are unsecured and are usually paid
within 90 days of recognition. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months after the reporting period. They are recognized
initially at fair value and subsequently measured at amortized cost using the effective
interest rate method.

(xii) Investment & Financial Assets

(a) Classification

The Group classifies its financial assets in the measurement categories:

* Those to be measured subsequently at fair value, and

* Those measured at amortised cost.

The Classification depends on the entity’s business model for managing the financial assets
and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will be recorded in profit or loss. For
investment in equity instruments, this will depend on whether group has made an

irrecoverable election at the time of initial recognition to account for the equity investment
at fair value through other comprehensive income.

(b) Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is primarily derecognized (i.e. removed from the Company’s
balance sheet) when:

A. The contractual rights to the cash flows from the financial asset have expired, or B. The
Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party
under a ‘pass-through’ arrangement; and either

i) The Company has transferred substantially all the risks and rewards of the asset, or

ii) The Company has neither transferred nor retained substantially all the risks and rewards
of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or
has entered into a pass-through arrangement, it evaluates if and to what extent it has
retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset,
the Company continues to recognize the transferred asset to the extent of the Company’s
continuing involvement. In that case, the Company also recognizes an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Company could be required to repay.

(c) Impairment of financial assets

The Company assesses impairment based on expected credit loss (ECL) model to the
following:

A. Financial assets measured at amortized cost B. Financial assets measured at fair value
through other comprehensive income

Expected credit losses are measured through a loss allowance at an amount equal to:

A. The 12-months expected credit losses (expected credit losses that result from those
default events on the financial instrument that are possible within 12 months after
the reporting date); or

B. Full time expected credit losses (expected credit losses that result from all possible
default events over the life of the financial instrument)

The Company follows ‘simplified approach’ for recognition of impairment loss allowance
on trade receivables. It recognizes impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition. The Company uses a provision matrix
to determine impairment loss allowance for trade receivables. The provision matrix is
based on its historically observed default rates over the expected life of the trade receivable
and is adjusted for forward looking estimates. At every reporting date, the historical
observed default rates are updated and changes in the forward-looking estimates are
analyzed.

For recognition of impairment loss on other financial assets and risk exposure, the
Company determines that whether there has been a significant increase in the credit risk
since initial recognition. If credit risk has not increased significantly, 12-months ECL is
used to provide for impairment loss. However, if credit risk has increased significantly,
lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves
such that there is no longer a significant increase in credit risk since initial recognition,
then the Company reverts to recognising impairment loss allowance based on 12-months
ECL.

ECL impairment loss allowance (or reversal) recognized during the period is recognized
as income/ expense in the statement of profit and loss. The balance sheet presentation for
various financial instruments is described below:

A. Financial assets measured as at amortised cost and contractual revenue receivables -
ECL is presented as an allowance, i.e., as an integral part of the measurement of those
assets in the balance sheet. The allowance reduces the net carrying amount. Until the
asset meets write-off criteria, the company does not reduce impairment allowance from
the gross carrying amount.

B. Financial assets measured at FVOCI - Since financial assets are already reflected at fair
value, impairment allowance is not further reduced from its value. Rather, ECL amount
is presented as accumulated impairment amount in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines financial
instruments on the basis of shared credit risk characteristics with the objective of
facilitating an analysis that is designed to enable significant increases in credit risk to be
identified on a timely basis.

(xiii) Financial Liabilities

a) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in case of loans and borrowings
and payables, net of directly attributable transaction costs.

Subsequently, all financial liabilities are measured at amortised cost or at fair value through profit
or loss. The Company’s financial liabilities include trade and other payables, loan and borrowings
including bank overdrafts.

b) Subsequent measurement

A. Financial liabilities measured at amortised cost

B. Financial liabilities subsequently measured at fair value through profit or loss Financial
liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the initial date of recognition, and
only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit risk are recognized in OCI.
These gains/ losses are not subsequently transferred to profit or loss. However, the
Company may transfer the cumulative gain or loss within equity. All other changes in
fair value of such liability are recognised in the statement of profit or loss. The
Company has not designated any financial liability as at fair value through profit or
loss.

c) Derecognition

A financial liability is derecognized when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognized in the statement of profit or
loss.

(xiv) Fair Value

The Company measures certain financial instruments at fair value at each balance sheet
date. The fair value measurement is based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

A. In the principal market for the asset or liability, or

B. In the absence of a principal market, in the most advantageous market for the asset or
liability.

The principal or the most advantageous market must be accessible by the Company. The
fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants
act in their best economic interest.

The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, described as under, based on the
lowest level input that is significant to the fair value measurement as a whole:

A. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or
liabilities.

B. Level 2 - Valuation techniques for which the lowest level input that is significant to the
fair value measurement is directly or indirectly observable.

C. Level 3 - Valuation techniques for which the lowest level input that is significant to the
fair value measurement is directly or indirectly observable.

For assets and liabilities that are recognized in the financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy
by re-assessing categorization (based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting period.

This note summarizes the accounting policy for fair value. Other fair value related
disclosures are given in the relevant notes.

Details of foreign exchange mentioned above are certified and provided by the
Management of the company.

(xvi) As certified by the company that it was received written representation from all the
directors, that companies in which they are directors had not defaulted in terms of section
164(2) of the companies Act, 2013, and the representation from directors taken in Board
that Director is disqualified from being appointed as Director of the company.

(xvii) Contributed Equity

Equity shares are classified as equity.

(a) Earnings per Share

Basic earnings per share is calculated by dividing:

-the profit attributable to the owners group

-by the weighted average number of equities shares outstanding during the year.

(b) Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded
off to the nearest lacs as per the requirement of Schedule III, unless otherwise
stated.

For and on behalf of the board of directors As per our attached report of even

date

For, TTL ENTERPRISES LIMITED

For, V S S B & Associates
Chartered Accountants
Firm No. 121356W

Sd/- Sd/-

Brijeshkumar Rajgor Vasantkumar Rajgor ^Sd/-

Director & C.F.O. Managing Director

(DIN: 08156363) (DIN: 08745707) (Vishves A Shah)

(Partner)
M No: -109944
UDIN: 24109944BKACSH4315
Date: 30^th May, 2024

Sd/- Place: Ahmedabad

Shagun Rathi
Company Secretary

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Mar 31, 2001

1. Figures for the year have been rounded off to the nearest Rupee.

2. Number of employees whether employed for full or part of the period who are in receipt of remuneration, aggregating to Rs. 25000/- or more per month - None.

3. The company does not have the practise to call for confirmation in respect of Loans & Advances, Debaters, Sundry Creditors, & another liabilities and hence the same are subject to confirmation & reconciliation if any, Barring a few parties under Loans & Advances and a few Parties under Sundry Creditors from whom confirmations are received for the year end balance.

4. For the year in question The company has not written off to P & P exp. @ 1/10 of the total expense as has been the practice of the company so far. Due to this Profit for the year has been reduced to the extent of Rs. 349965/-

5. Prior Period Items Include :

(a) A sum of Rs. 8.00 Lac as which represents balance reconciliation difference with Nakoda Textiles Industries Ltd. arising out of rate difference debit Notes in Sale/Purchase transactions of earlier Years.

(b) a further sum of Rs. 63057 Lacs, which represent accumulated depreciation since 1996 on a sum of Rs. 187644 by way of Brokerage/Commission on acquisition of Machinery. The said expenditure was omitted to be recorded due to some disputes.

6. Computation of NP* Profit U/S 309(5) of the Companies Act, 1956 is not given because no commission is payable to managing directors or other directors.

7. Figures for previous the year as well as current year have been regrouped wherever found necessary.

8. Presently the process of ascertaining status of creditors is in progress, hence, exact amount outstanding to S.S.I, units amongst the creditors is not readily available.

9. (a) Land, Building, Structures & Plants Standing thereon. Situated at Book No. 9 to 10 Village Karanj, Dist. Surat.

(b) All Plants & Machinery situated thereon.

(c) All books debts of the Company present & future

(d) Hypothecation of stock of raw materials, finished goods & goods in progress

10. The company has not provided for Income Tax liability due to loss as per Books of Accounts.

11. Contingent Liabilities :

(a) Company has preferred an appeal against the order of D. C. I.t.Co. Cir. 3 (1), Surat against the addition of Rs. to its closing Stock for A. Y. 97-98. The matter is reported to be under litigation.

(b) Company has availed P. C. facilities in the past from Canara Bank K. M. Road, Surat. As perthe directive of RBI, interest was not payable on such facility. However during the year, bank has charged interest of Rs. 191379 stating that the same was chargeable. Company has contested the interest and shown as recoverable in the Balancesheet. Matter is reported to be under negotiation.

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Jun 30, 1993

1. The company does not have the practice to call for confirmation in respect of Loans & Advances, Sundry debtors, sundry creditors & other liabilities and hence same are subject to confirmation and reconciliation if any.

2. Company has not provided for income tax in view of the fact that no Income Tax Liabilities would arise as per the accounts prepared for the year ending 31.3.1993.

3. In the opinion of the Board, the current Loans & Advances are approximately of the value stated if realised in the ordinary course of the Business.