Notes to Accounts of T T Ltd.

Mar 31, 2025

o) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized 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 are liable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.

p) Earning Per Share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity
holders of the company by the weighted average number of equity shares outstanding during the
period. Diluted earnings per equity share is computed by dividing the net profit attributable to the
equity holders of the company by the weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential

equity shares are deemed converted as of the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus shares issues including for changes effected prior to
the approval of the financial statements by the Board of Directors.

q) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity Initial recognition

The company recognizes financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value
on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities that are not at fair value through profit or loss are added to the
fair value on initial recognition.

Subsequent measurement

For the purpose of subsequent measurement financial assets is classifies in three broad categories:

A. Non-derivative financial instruments

(i) Debt instrument carried at amortized cost A debt instrument is subsequently measured at
amortized cost if it is held within a business model whose objective is to hold the asset in order
to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income
if it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. The Company has made an irrevocable election for its investments which
are classified as equity instruments to present the subsequent changes in fair value in other
comprehensive income based on its business model. Further, in cases where the company
has made an irrevocable election based on its business model, for its investments which are
classified as equity instruments, the subsequent changes in fair value are recognized in other
comprehensive income.

(iii) Financial assets at fair value through profit or loss

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value
through statement ofprofit or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through statement ofprofit or loss is recognised in statement of profit
or loss in the period in which it arises. Interest income from thesefinancial assets is included in
other income.

iv) De-recognition of financial assets

A financial asset is derecognised only when:

- The Company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligationto pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred

substantially all risksand rewards of ownership of the financial asset. In such cases, the financial asset
is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership
of the financial asset, the financial asset is noted recognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards
of ownershipof the financial asset, the financial asset is derecognised if the Company has not retained
control of the financialasset. Where the Company retains control of the financial asset, the asset is
continued to be recognised to theextent of continuing involvement in the financial asset.

(iv) Financial liabilities

i) Classification

Debt and equity instruments issued by the Company are classified as either financial liabilities
or as equity inaccordance with the substance of the contractual arrangements and the definition
of a financial liability and anequity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deductingall of its liabilities.

ii) Measurement

Financial liabilities are initially recognised at fair value, reduced by transaction costs (in case
of financial liabilitynot at fair value through statement of profit or loss), that are directly
attributable to the issue of financial liability. After initial recognition, financial liabilities are
measured at amortised cost using effective interest method. Theeffective interest rate is the
rate that exactly discounts estimated future cash outflow (including all fees paid, transaction
cost, and other premiums or discounts) through the expected life of the financial liability, or,
whereappropriate, a shorter period, to the net carrying amount on initial recognition. At the time
of initial recognition, there is no financial liability irrevocably designated as measured at fair
value through statement of profit andloss.

iii) Impairment of Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets whichare not fair valued through statement of profit or loss. Loss allowance
for trade receivables with no significant financingcomponent is measured at an amount equal
to lifetime ECL. For all other financial assets, expected credit losses aremeasured at an amount
equal to the 12-month ECL, unless there has been a significant increase in credit risk frominitial
recognition in which case those are measured at lifetime ECL. The amount ofexpected credit
losses (orreversal) that is required to adjust the loss allowance at the reporting date is recognized
as an impairment gain orloss in statement of profit and loss.

For trade receivables only, theCompany applies the simplified approach permitted by IndAS
109 Financial Instruments, which requires expected lifetime losses to be recognized from
initial recognition of the receivables. As a practicalexpedient, the Company uses a provision
matrix to determine impairment loss of its trade receivables. The provisionmatrix is based
on its historically observed default rates over the expected life of the trade receivable and is
adjustedfor forward looking estimates. The ECL loss allowance (or reversal) during the year is
recognized in the statement ofprofit and loss.

iv) Derecognition:

A financial liability is derecognised 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 thede-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts
is recognised in the statement of profit and loss.

v) Trade and other payables

Trade and other payables represent liabilities for goods and services provided to the Company
prior to the end of financial year which are unpaid. They are recognised initially at their fair
value and subsequently measured amortised cost using the effective interest method.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legallyenforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously. The
legally enforceable right must not be contingent on future eventsand must be enforceable in the
normal course of business and in the event of default, insolvency or bankruptcy of theCompany
or the counterparty.

vi) Investment in Subsidiaries, Associates and Joint Ventures

Investment in subsidiaries, associates and joint ventures carried at cost in the separate financial
statements

vii) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest method, less provision for impairment.

viii) Cash and cash equivalents

Cash and short-term deposits in the statement of financial position comprise cash at banks and
on hand and short-term deposits with a maturity of three months or less, which are subject to an
insignificant risk of changes in value. Cash and cash equivalents consist of balances with banks
which are unrestricted for withdrawal and usage.

B. Derivative financial instruments

Initial recognition and subsequent measurement

The company holds derivative financial instruments such as foreign exchange forward and option
contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The
counterparty for these contracts is generally a bank.

Financial assets or financial liabilities, at fair value through profit or loss

This category has derivative financial assets or liabilities which are not designated as hedges. Although
the company believes that these derivatives constitute hedges from an economic perspective, they
may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is
either not designated a hedge, or is so designated but is ineffective as per Ind AS 109, is categorized
as a financial asset or financial liability, at fair value through profit or loss.

Cash flow hedge

The company designates certain foreign exchange forward contracts as cash flow hedges to mitigate
the risk of foreign exchange exposure on highly probable forecast cash transactions. When a derivative
is designated as a cash flow hedging instrument, the effective portion of changes in the fair value
of the derivative is recognized in other comprehensive income and accumulated in the cash flow
hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized
immediately in the net profit in the statement of profit and loss. If the hedging instrument no longer
meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the
hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the
hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective
remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain

or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the
statement of profit and loss upon the occurrence of the related forecasted transaction. If the forecasted
transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve
is reclassified to net profit in the statement of profit and loss.

r) Fair Value Measurement

The Company measures financial instruments such as derivatives and certain investments, at the fair
value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:

(i) In the principal market for the asset or liability. Or

(ii) In the absence of a principal market, in the most advantageous market for the assets 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 economic best interest.

A fair value measurement of a non-financial assets takes into account a market participant''s ability to
generate economic benefits by using the assets in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

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 follows, based on the lowest level input that is significant to the fair value measurement
as whole:

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

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

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognized in the balance sheet on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by reassessing
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. For the purpose of fair value disclosures, the company has
determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy as explained above.

1.4. Critical accounting estimates and judgments

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires
management to make judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting period.
Although these estimates are based upon management''s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes requiring a material
adjustment to the carrying amounts of assets or liabilities in future periods. Critical accounting estimates
and Judgments a.

a. Useful lives of Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the company.
The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s
expected useful life and the expected residual value at the end of its life. The useful lives and residual
values of property, plant and equipment are determined by the management based on technical
assessment by internal team and external advisor. The lives are based on historical experience with
similar assets as well as anticipation of future events, which may impact their life, such as changes
in technology. The Company believes that the useful life best represents the period over which the
Company expects to use these assets.

b. Contingent liability

Management judgement is required for estimating the possible outflow of resources, if any, in respect
of contingencies/claim/ litigations against the Company as it is not possible to predict the outcome of
pending matters with accuracy.

c. Income taxes

The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement
in respect ofcertain items whose tax treatment cannot be finally determined until resolution has been
reached with the relevant taxauthority or, as appropriate, through a formal legal process. The Company
reviews at each balance sheet date the carrying amount of Income Tax /deferred tax Liabilities.

d. Defined benefit plans (gratuity)

The Company''s obligation on account of gratuity is determined based on actuarial valuations.An
actuarial valuation involves making various assumptions that may differ from actual developments in
the future. Theseinclude the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involvedin the valuation and its long-term nature, these liabilities are
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date.

The parameter most subject to change is the discount rate. In determining the appropriate discount
rate, the management considers the interest rates of government bonds in currencies consistent with
the currencies of the post-employment benefit obligation.

e. Insurance and other Claims

Insurance claims are recognized when the Company has reasonable certainty of recovery. Subsequently
any change in recoverability is provided for.

f. Impairment of Financial Assets

The impairment provisions for financial assets are based on assumptions about risk of default and
expected loss rates. The Company uses judgement in making assumptions and selecting the inputs to
the impairment calculation, based on Company''s past history, existing market conditions as well as
forward estimate at the end of each reporting period.

(ii) Rupees Term Loan sanctioned by Indian Bank is secured by first charge on company''s immoveable & moveable
assets located at Howrah, (West Bengal). Loan is further secured by personal guarantee of T T Brands Limited, Shri
Sanjay Kumar Jain, Managing Director & Smt. Jyoti Jain, Joint Managing Director of the Company. Term Loan carry
ROI @ 9% p.a.

(iii) Rupees Term Loan sanctioned by HDFC Bank is secured by first charge on company''s immoveable & moveable assets
located at Avinashi, Distt. Tripur (Tamilnadu). Loan is further secured by personal guarantee of Shri Rikhab C. Jain,
Chairman and Shri Sanjay Kumar Jain, Managing Director & Smt. Jyoti Jain, Joint Managing Director of the Company.
Term Loan carry ROI @9.40% p.a.

(iv) Term Loan from LIC is against Keyman Insurance Policy

(v) Borrowings from Directors and others is the amount inducted by the promoters as per the terms and conditions
stipulated in sanctions of the loans by the bankers, are not repayabale in next 12 months therefore all such borrowings
have been classified as "Long term in nature"

(vi) The working capital loans from HDFC Bank is secured by hypothecation of Raw Material, Work in-process, Packing
Material, Finished Goods and Book Debts and second charge over Fixed Assets located at Avinashi and further secured
by personal guarantee of Shri Rikhab C. Jain, Chairman, Shri Sanjay Kumar Jain, Managing Director and Smt Jyoti Jain,
Jt. Manageing Director of the Company. .

1) The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length
transactions.

2) Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

3) There have been no guarantees provided or received for any related party receivables or payables.

For the year ended March 31, 2025, the company has not recorded any impairment of receivables relating to amounts
owed by related parties.

This assessment is undertaken each financial year through examining the financial position of the related party and the
market in which the related party operates.. .

36. SEGMENT INFORMATION

The Chief Operational Decision Maker monitors the operating results as one single business segment viz. Manufacturing
and Sales of Textiles Goods for the purpose of making decisions about resource allocation and performance assessment
and hence, there are no additional disclosures to be provided other than those already provided in the financial
statements.

There are no individual customers or a particular group contributing to more than 10% of revenue.

Financial Instruments
37 Capital Management

The Company manages its capital to ensure that the entities in the Company will be able to continue as going concern
while maximizing the return to shareholders and also complying with the ratios stipulated in the loan agreements
through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 14 & 17 offset by cash and
bank balances) and equity of the Company (comprising issued capital, reserves, retained earnings and non-controlling
interests as detailed in note 14 & 17).

The Company is not subject to any externally imposed capital requirements.

The capital structure of the Company consists of net debt (borrowings as detailed in Note 14 and 16 offset by cash and
bank balances as detailed in Note 8 & 10) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

Note:

i. Debt is defined as long and short-term borrowings (excluding derivative, financial guarantee contracts), as described in
notes 14 and 16.

ii. In order to achieve this overall objective, the Group''s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or
charge some penal interest There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current years and
previous years.

37.6 Financial risk management

The Company''s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. The Company''s
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The market risk to the Company is foreign exchange risk and interest rate. The Company''s exposure to
credit risk is influenced mainly by the individual characteristic of each customer

The Company''s focus is to ensure liquidity which is sufficient to meet the Company''s operational requirements.
The Company monitors and manages key financial risks so as to minimise potential adverse effects on its financial
performance. The Company has a risk management policy which covers the risks associated with the financial assets
and liabilities. The details for managing each of these risks are summarised ahead..

37.7 Market risk

Market risk is the risk that the expected cash flows or fair value of a financial instrument could change owing to changes
in market prices.The Company''s activities expose it primarily to the financial risks of changes in foreign currency
exchange rates and interest rates.

37.8 Foreign currency risk management

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because
of changes in foreign exchange rate.

The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency
movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews
and manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper
advice from market experts, hedging of exposures, etc.

37.9 Interest rate risk management

The company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The
risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings.

The company''s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity
risk management section of this note..

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is
prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 50 basis point increase or decrease represents management''s assessment of the reasonably
possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the company''s:

i) Profit for the year ended 31 March, 2025 would decrease/increase by Rs. 26.92 lacs (31 March, 2024: decrease/
increase by Rs. 40.20 lacs). This is mainly attributable to the company''s exposure to interest rates on its variable
rate borrowings.

37.10 Other price risks

The company is not exposed to any instrument which has price risks arising from equity investments which is not
material.

37.11 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Company. The Company''s exposure to credit risk primarly arises from trade receivables, balances with banks,
investments and security deposits. The credit risk on bank balances is limited because the counterparties are banks
with good credit ratings.

37.11.1 Trade Receiavbles

Trade receivables are derived from revenue earned from customers. Credit risk for trade receivable is managed by
the Company through credit approvals, establishing credit limits and periodic monitoring of the creditworthiness
of its customers to which the Company grants credit terms in the normal course of business . The Company also
assesses the financial reliability of customers taking into account the financial condition, current economic trends
and historical bad debts and ageing of accounts receivables. As per simplified approach, the Company uses a
provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes
into account a continuing credit evaluation of Company''s customers'' financial condition; aging of trade accounts
receivable .

During the year the Company has recognised loss allowance of Rs 29.18 Lacs (previous year Rs 20.06 lakhs) Under
12 months expected credit loss model.

No significant changes in estimation techniques or assumptions were made during the reporting period.

37.12 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 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.

are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the three levels prescribed under
the accounting standard.

An explanation of each level is as follows:-

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included
in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.

37.14 Derivative financial instruments

The Company holds derivative financial instruments such as forign currency forward contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures.The objective of hedges is to minimize the volatility of INR
cash flows of highly probable forecast transaction. The Company''s risk management policy is to hedge around 70%
to 90% of net exposure with forward exchange contract,having a maturity upto 12 months.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective
effectivenes assessments to ensure that an economic relatioship exists between the hedged item and hedging
instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

Details of Assets held for sale as under :

During the previous year The Company has entered into an MOU for sale of Company''s Textile unit at Gajroula on "AS IS
WHERE IS" basis at an agreed consideration of Rs 7100 Lakhs. The Company has received Rs 1350 Lakhs as advance upto
31st March, 2024. As a consequence, the entire fixed assets of Gajroula Textile unit have been transferred to "Assets held
for Sale" as on 31st March, 2024. Profit/Loss on this transaction has been accounted in current year. (Refer note no. 33).

39. Other Disclosers

a GST self assessment in different states have been completed up to the assessment year 2023-24. The Company
has filed appeal against the total Tax Liability assessed at Rs Nil lacs (previous year Rs 1.24 lacs)

b Income Tax Assessment completed up to Assessment Year 2024-25 .

c Trade Payables include outstanding dues of small scale industries Rs. 59.36 lacs (Previous year Rs. 52.14 lacs).

The above information regrading small scale industrial undertakings has been determined to the extent such
parties have been identified by the company and on the basis of invormation available with them.

d Derivative instruments and unhedged foreign currency exposure as on date of Balance Sheet the company has
gross exposure in the form of plain Vanilla Forward Contracts for the purpose of hedging export sales amounting
to Rs. 87.53 Lakhs (P Y Rs. 1113.02 Lakhs). .

40 i) The response to letters sent by the company requesting confirmation of balances has been insignificant. In the
managements opinion adjustments on reconciliation of the balances, if any required, will not be material in
relation to the finanacial Statements of the company and the same will be adjusted in the financial statements as
and when the confirmations are received and reconcilations completed.

a) Figures in brackets, wherever given, are in respect of previous year.

b) The company has reclassified previous years figures to confirm to this year''s classification.

41 The date of implementation of the Code of Wages 2019 and Code on Social Security, 2020 is yet to be notified by the

Government. The company is in the process of assessing the impact of these Codes and will give effect In the financial

results when the Rules/Schemes thereunder are notified.

42 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other person(s) or entity (ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by
or on behalf of the Company (Ultimate Beneficiaries).

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) Directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like on behalf of the ultimate
beneficiaries.

(vii) The Company has no subsidiary, associates and joint venture down word.

(viii) The lender of the company has not declared the company as wilful defaulter and also the company has not
defaulted in loan repayment of loan to the lender.

(ix) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.

(x) There is no transaction which is not recorded in the books of account that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.

(xi) 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 opertated throughout the year for all relevent transaction recorded
in the software.

43 The Board of Directors have recommended dividend @ 5% (Rs 0.05 per equity share of Rs 1 each) for the year ended

31st March, 2025.

44 The financial statements for the year ended 31st March, 2025 were approved by the Board of Directors and authorise

for issue on 21st May, 2025

The accompany note no. (2 to 44) are integral part of the financial statements

Summary of significant accounting policies 1

As per our report of even date attached

For Doogar & Asssociates For and on behalf of the Board of Directors of

Chartered Accountants T T Limited

Firm Registration No. 000561N

(Mukesh Goyal) Sanjay Kumar Jain) Sunil Mahnot

Partner Mnanging Director Director ( Finance)

M No. 081810 (DIN : 01736303) (DIN : 006819974)

Place: New Delhi Pankaj Mishra

Date : 21.05.2025 Company Secretary

(M:ACS40550)

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Mar 31, 2024

o) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized 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 are liable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

p) Earning Per Share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that

could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

q) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity Initial recognition

The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition.

Subsequent measurement

For the purpose of subsequent measurement financial assets is classifies in three broad categories:

A. Non-derivative financial instruments

(i) Debt instrument carried at amortized cost A debt instrument is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. Further, in cases where the company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

(iii) Financial assets at fair value through profit or loss

Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through statement of profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through statement of profit or loss is recognised in statement of profit or loss in the period in which it arises. Interest income from these financial assets is included in other income.

iv) De-recognition of financial assets

A financial asset is derecognised only when:

- The Company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred

substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is noted recognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

(iv) Financial liabilities

i) Classification

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

ii) Measurement

Financial liabilities are initially recognised at fair value, reduced by transaction costs (in case of financial liability not at fair value through statement of profit or loss), that are directly attributable to the issue of financial liability. After initial recognition, financial liabilities are measured at amortised cost using effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash outflow (including all fees paid, transaction cost, and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. At the time of initial recognition, there is no financial liability irrevocably designated as measured at fair value through statement of profit and loss.

iii) Impairment of Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through statement of profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date is recognized as an impairment gain or loss in statement of profit and loss.

For trade receivables only, the Company applies the simplified approach permitted by IndAS 109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. As a practical expedient, the Company uses a provision matrix to determine impairment loss of its 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. The ECL loss allowance (or reversal) during the year is recognized in the statement of profit and loss.

iv) Derecognition:

A financial liability is derecognised 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 de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

v) Trade and other payables

Trade and other payables represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. They are recognised initially at their fair value and subsequently measured amortised cost using the effective interest method.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally bnenforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability 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 the counterparty.

vi) Investment in Subsidiaries, Associates and Joint Ventures

Investment in subsidiaries, associates and joint ventures carried at cost in the separate financial statements

vii) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

viii) Cash and cash equivalents

Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

B. Derivative financial instruments

Initial recognition and subsequent measurement

The company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank.

Financial assets or financial liabilities, at fair value through profit or loss

This category has derivative financial assets or liabilities which are not designated as hedges. Although the company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated a hedge, or is so designated but is ineffective as per Ind AS 109, is categorized as a financial asset or financial liability, at fair value through profit or loss.

Cash flow hedge

The company designates certain foreign exchange forward contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the net profit in the statement of profit and loss. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the net profit in the

statement of profit and loss upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified to net profit in the statement of profit and loss.

r) Fair Value Measurement

The Company measures financial instruments such as derivatives and certain investments, at the fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(i) In the principal market for the asset or liability. Or

(ii) In the absence of a principal market, in the most advantageous market for the assets 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 economic best interest.

A fair value measurement of a non-financial assets takes into account a market participant''s ability to generate economic benefits by using the assets in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

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 follows, based on the lowest level input that is significant to the fair value measurement as whole:

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

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

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing 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. For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

1.4. Critical accounting estimates and judgments

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Critical accounting estimates and Judgments.

a. Useful lives of Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the

company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of property, plant and equipment are determined by the management based on technical assessment by internal team and external advisor. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. The Company believes that the useful life best represents the period over which the Company expects to use these assets.

b. Contingent liability

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/ litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

c. Income taxes

The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The Company reviews at each balance sheet date the carrying amount of Income Tax /deferred tax Liabilities.

d. Defined benefit plans (gratuity)

The Company''s obligation on account of gratuity is determined based on actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

e. Insurance and other Claims

Insurance claims are recognized when the Company has reasonable certainty of recovery. Subsequently any change in recoverability is provided for.

f. Impairment of Financial Assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward estimate at the end of each reporting period.

(ii) Rupees Term Loan from Indian Bank is secured by first charge on company''s immoveable & moveable assets located at Howrah (West Bengal). Loan is further secured by personal guarantee of Shri Rikhab C. Jain, Chairman and Shri Sanjay Kumar Jain, Managing Director & Smt. Jyoti Jain, Joint Managing Director of the Company. Term Loan carry ROI @9.50% p.a.

(iii) Guaranteed Emergency Credit Line (GECL) sanctioned by Punjab National Bank (PNB) and Indian Bank are secured by second pari passu charge on Company''s Gajroula and Avinashi Units. Further GECL is secured by 100% Guarantee cover under "Emergency Credit Line Guarantee Scheme" of National Credit Guarantee Trustee Company (NCGTL) of Govt. of India. GECL carrying ROI ranging from 7.8% to 9.25% P.A.

(iv) Term Loan from LIC is against Key man Insurance Policy

(v) Borrowings from Directors and others is the amount inducted by the promoters as per the terms and conditions stipulated in sanctions of the loans by the bankers, are not repayabale in next 12 months, therefore all such borrowings have been classified as "Long term in nature"

(vi) The working capital loans from PNB is secured by hypothecation of Raw Material, Work in-process, Packing Material, Finished Goods and Book Debts and second charge over Fixed Assets located at Gajroula and Avinashi and further secured by personal guarantee of Shri Rikhab c. Jain, Chairman and Shri Sanjay Kumar Jain, Managing Director of the Company.

35. SEGMENT INFORMATION

The Chief Operational Decision Maker monitors the operating results as one single business segment viz. Manufacturing and Sales of Textiles Goods for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.

There are no individual customers or a particular group contributing to more than 10% of revenue.

Financial Instruments 36 Capital Management

The Company manages its capital to ensure that the entities in the Company will be able to continue as going concern while maximizing the return to shareholders and also complying with the ratios stipulated in the loan agreements through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in Note 14 and 16 offset by cash and bank balances as detailed in Note 8 & 10) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

36.6 Financial risk management

The Company''s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The market risk to the Company is foreign exchange risk and interest rate. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer

The Company''s focus is to ensure liquidity which is sufficient to meet the Company''s operational requirements. The Company monitors and manages key financial risks so as to minimise potential adverse effects on its financial performance. The Company has a risk management policy which covers the risks associated with the financial assets and liabilities. The details for managing each of these risks are summarised ahead.

36.7 Market risk

Market risk is the risk that the expected cash flows or fair value of a financial instrument could change owing to changes in market prices. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

36.8 Foreign currency risk management

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rate.

The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of exposures, etc.

36.9 Interest rate risk management

The company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings.

The company''s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the company''s:

i) Profit for the year ended 31 March, 2024 would decrease/increase by Rs. 40.20 lacs (31 March, 2023: decrease/ increase by Rs. 37.50 lacs). This is mainly attributable to the company''s exposure to interest rates on its variable rate borrowings.

36.10 Other price risks

The company is not exposed to any instrument which has price risks arising from equity investments which is not material.

36.11 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk primarly arises from trade receivables, balances with banks, investments and security deposits. The credit risk on bank balances is limited because the counterparties are banks with good credit ratings.

36.11.1 Trade Receiavbles

Trade receivables are derived from revenue earned from customers. Credit risk for trade receivable is managed by the Company through credit approvals, establishing credit limits and periodic monitoring of the creditworthiness of its customers to which the Company grants credit terms in the normal course of business . The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends

and historical bad debts and ageing of accounts receivables. As per simplified approach, the Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account a continuing credit evaluation of Company''s customers'' financial condition; aging of trade accounts receivable .

36.11.2. Investments

The Company limits its exposure to credit risk by generally investing with counterparties that have a goodcredit rating. The Company has funded defined-benefit gratuity plans. The funded status of these plans are influenced by movements in financial market. A negative performance of the financial markets could have a material impact on cash funding requirements

36.11.3 Cash & cash equivalents

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.

36.12 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 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.

36.12a Commodity Risk

The Company is impacted by the Price volatility of Cotton and Cotton Yarn Due to significant volatility of the Price of cotton and Cotton Yarn in Domestic and international market, the management has developed and enacted a risk management. Strategy regarding commodity Price risk and its mitigation.

36.13 Fair value measurements

A. Financial instruments by category

There are no financial assets/liabilities that are measured at fair value through statement of profit and loss or other comprehensive income. The following financial assets/liabilities are measured at amortised cost:

which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

An explanation of each level is as follows:-

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

36.14 Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The objective of hedges is to minimize the volatility of INR cash flows of highly probable forecast transaction. The Company''s risk management policy is to hedge around 70% to 90% of net exposure with forward exchange contract,having a maturity upto 12 months.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectivenes assessments to ensure that an economic relatioship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

38 Other Disclosers

a Sales Tax assessment in different states have been completed up to the assessment year 2017-18 (April-June, 2017). The Company has filed appeal against the total Tax Liability assessed at Rs 1.24 lacs (previous year Rs 60.89 lacs)

b Income Tax Assessment completed up to Assessment Year 2023-24 .

c Trade Payables include outstanding dues of small scale industries Rs. 52.14 lacs (Previous year Rs. 22.90 lacs).

The above information regrading small scale industrial undertakings has been determined to the extent such parties have been identified by the company and on the basis of invormation available with them.

d Derivative instruments and unhedged foreign currency exposure as on date of Balance Sheet the company has gross exposure in the form of plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs. 1113.02 Lakhs (P Y Rs. 1075.53 Lakhs).

39 i) The response to letters sent by the company requesting confirmation of balances has been insignificant. In the

managements opinion adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial Statements of the company and the same will be adjusted in the financial statements as and when the confirmations are received and reconcilations completed.

ii) Inventories, Loans & advances , trade receivables and other current/ non- current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance sheet.

a) Figures in brackets, wherever given, are in respect of previous year.

b) The company has reclassified previous years figures to confirm to this year''s classification.

40 The date of implementation of the Code of Wages 2019 and Code on Social Security, 2020 is yet to be notified by the

Government. The company is in the process of assessing the impact of these Codes and will give effect In the financial

results when the Rules/Schemes thereunder are notified

41 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity (ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vii) The Company has no subsidiary, associates and joint venture down word.

(viii) The lender of the company has not declared the company as wilful defaulter and also the company has not defaulted in loan repayment of loan to the lender.

(ix) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

(x) There is no transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

42 The financial statements for the year ended 31st March, 2024 were approved by the Board of Directors and authorise

for issue on 23 rd May, 2024

The accompany note no. (2 to 42) are integral part of the financial statements Summary of significant accounting policies 1

As per our report of even date For Doogar & Asssociates Chartered Accountants

Firm Registration No. 000561N (Sanjay Kumar Jain) (Sunil Mahnot) (Pankaj Mishra)

Managing Director Director (Finance) Company Secretary

(Mukesh Goyal) (DIN: 01736303) (DIN: 06819974) (M: ACS40550)

Partner M No. 081810

Place: New Delhi Date : 23.05.2024

---

Mar 31, 2018

Note 1

Corporate Information

T T Limited ("Company") is a public Company domiciled in India and is incorporated under the provisions of the Companies Act applicable In India. Its shares are listed with the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The registered office of the Company is located at 879, Master Prithvi Nath Marg, Karol Bagh, Delhi-110005. The Company is engaged in primarily one segments consisting of Textile (comprising of yarn manufacturing. Knitting, and cutting and sewing of textiles products).

The financial statements are authorised for issue in accordance with a resolution of the Board of Directors dated 18th May 2018

Note 2.

First-time adoption optional exemption Overall principle

The Company has prepared the opening balance sheet as per Ind AS as of 1 April, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions regarding retrospective application, availed by the Company as detailed below.

In respect of subsidies receivable under the Technology Up-gradation Fund Scheme (TUFS) for Textiles established by Government of India, the lending institutions are yet to provide confirmation as to action taken by them towards claiming reimbursement of subsidies. Accordingly, subsidy receivable is subject to final adjustments that may arise on settlement of issues and actions taken by the lenders.

b) Term/right attached to equity shares

Company has only one class of equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares

d) The company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash nor has allotted any fully paid up shares by way of bonus shares nor has bought back.

ii) Rupees Term Loan from Oriental Bank of Commerce (OBC), Punjab National Bank (PNB), State Bank of India (SBI) and Indian Bank are secured by pari-passu charge on company''s immoveable & moveable assets located at Gajroula, Avinashi, Rajula units and Wind Mill located at Jamanvada, Gujarat of the company. Loans are further secured by personal guarantee of Shri Rikhab C. Jain, Chairman of the Company. Term Loan carry ROI ranging from 11.10% to 12.60% p.a. The aforesaid interest rate is subject to benfLt under TUF scheme of Government of India and state interest subsidies where ever applicable.

iii) The Company has neither accepted nor renewed any Fixed Deposit from public during the year. Entire outstanding Fixed Deposit as on 31st March, 2016 was repaid during 2016-17.

iv) Borrowings from Directors and others is the amount inducted by the promoters as per the terms and conditions stipulated in sanctions of the loans by the bankers, are not repayabale in next 12 months therefore all such borrowings have been classified as "Long term in nature"

v) The working capital loans from consortium of banks i.e. OBC & PNB are secured by hypothecation of Raw Material, Work in process, Packing Material, Finshed Goods and Book Debts and second charge over Fixed Assets located at Gajroula, Avinashi, and Rajula and further secured by personal guarantee of Shri Rikhab C. Jain, Chairman of the Company.

The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") has been determined to the extent such parties have been identified by the company, on the basis of information and records available with them. This information has been relied upon by the auditors. Disclosure as required under section 22 of the Act, is as under. Disclosure in respect of interest due on delayed payment has been determined only in respect of payments made after the receipt of information, with regards to filing of memorandum, from the respective suppliers.

3. Earnings per share

Basic earnings per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the year

4. Operating lease

The Company has entered into operating lease arrangements for office space. The average lease term is 1 years. The minimum lease payment during non-cancellable period under the going arrangements in the aggregate for each of the following period as follows:

Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company''s favour in respect of all the items listed at (i) to (vi) above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operations.

a) Income Tax Assessment have been completed up to assessment year 2014-15 except for the Assessment year 2013-14 where the department has raised demand of Rs 811426/-. The management forsees that existing provision are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8,05,000, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company''s policy a sum of Rs. 1230.91 lacs (Previous year Rs. 1083.23 lacs) has been shown as MAT credit entitlement under "Long term loan & advances".

5. Employee Benefits

A Defined Contribution plans

The Company has recognised Rs. 171.25 lakhs (Previous year 196.33 lakhs) in statement of profit and loss as Company''s contribution to provident fund, NIL (Previous year :NIL) as Company''s contribution to Superannuation Fund.

Sensitivities due to mortality and withdrawals are not material & hence Impact of change not calculated. Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

xi The estimates of future salary increase considered in actuarial valuation, take account of inflation, seniority, promotion and other evant factors. The above information is certified by the actuary and relied upon by the auditors.

xii The employer''s best estimate of contribution expected to be paid during the next year is Rs. 128.81 lakhs

6: Financial Instruments

Capital Management

The Company manages its capital to ensure that the entities in the Company will be able to continue as going concern while maximizing the return to shareholders and also complying with the ratios stipulated in the loan agreements through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 14 and 16 offset by cash and bank balances as detailed in note 8 & 10) and total equity of the Company.

The Company is not subject to any externally imposed capital requirements.

Note:

i. Debt is defined as long and short-term borrowings (excluding derivative, financial guarantee contracts), as described in notes 14 and 19.

ii. In order to achieve this overall objective, the Group''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current years and previous years.

7. Financial risk management

The Company''s activities expose it to a variety of financial risks which includes market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company''s focus is to ensure liquidity which is sufficient to meet the Company''s operational requirements. The Company monitors and manages key financial risks so as to minimise potential adverse effects on its financial performance. The Company has a risk management policy which covers the risks associated with the financial assets and liabilities. The details for managing each of these risks are summarised ahead.

8. Market risk

Market risk is the risk that the expected cash flows or fair value of a financial instrument could change owing to changes in market prices. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

9. Foreign currency risk management

Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rate. The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of exposures, etc. The Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate foreign exchange related risk exposures. Derivative financial instruments relating to a firm commitment or a highly probable forecast transaction, are marked to market at every reporting date. In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

10. Interest rate risk management

The company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings. The company''s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the company''s:

I) profit for the year ended 31 March, 2018 would decrease/increase by Rs. 69.70 lacs (Previous year: decrease/increase by Rs. 78.65 lacs). This is mainly attributable to the company''s exposure to interest rates on its variable rate borrowings.

11. Other price risks

The company is not exposed to any instrument which has price risks arising from equity investments which is not material.

12. Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company''s exposure to credit risk primarly arises from trade receivables, balances with banks, investments and security deposits. The credit risk on bank balances is limited because the counter parties are banks with good credit ratings.

13. Trade Receivables

Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables

14. Investments

The Company limits its exposure to credit risk by generally investing with counter parties that have a good credit rating. The Company has funded defined-benefit gratuity plans. The funded status of these plans are influenced by movements in financial market. A negative performance of the financial markets could have a material impact on cash funding requirements

15. Cash & cash equivalents

With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure arises from the default of the counter party, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank. Company considers the risks of non-performance by the counter party as non-material.

During the year the Company has recognised loss allowance of Rs. 91.00 lacs Under 12 months expected credit loss model.

No significant changes in estimation techniques or assumptions were made during the reporting period.

16. 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 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.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

17. Commodity Risk

The Company is impacted by the Price volatility of Cotton. Due to significant volatility of the Price of cotton in Domestic and international market, the management has developed and enacted a risk management strategy regarding commodity Price risk and its mitigation.

18. Fair value measurements

This note provides information about how the company determines fair values of various financial assets and financial liabilities.

Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

The directors consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.

19. Derivative financial Instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The objective of hedges is to minimize the volatility of INR cash flows of highly probable forecast transaction. The Company''s risk management policy is to hedge around 70% to 90% of net exposure with forward exchange contract, having a maturity upto 12 months. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

20. Other Disclusorers

20.1 Sales Tax assessment in different states have been completed up to the assessment year 2013-14. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account.

20.2 Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant & machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

20.3 Trade creditors include outstanding dues of small scale industries Rs. 12.28 lacs (Previous year Rs. 11.21 lacs). The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company and on the basis of information available with them.

20.4. Derivative instruments and unhedged foreign currency exposure As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs .44 cr. (P Y Rs. 5.83 cr.).

20.5. a) The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

b) Inventories, loans & advances, trade receivables and other current/non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

a) Figures in brackets, wherever given, are in respect of previous year.

b) The company has reclassified previous year figures to confirm to this year''s classification.

Notes to the reconciliaiton

1 Under previous GAAP, acturial gains and losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit or loss. The actuarial gains for the year ended March 31,2017 were Rs. 18.50 lakhs and the tax effect thereon Rs. 6.40 lakhs This change does not affect total equity, but there is decrease in profit before tax of Rs. 18.50 lakhs and in total profit of Rs. 12.10 lakhs for the year ended March 31,2017.

2 Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deffered taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences, which was not required under previous GAAP.

3 Under Ind AS, effective portion of the cash flow hedge to be recognised in other comprehensive income and however in the previous GAAP same has been recognised under Reserve and Surplus under the head" Cash Flow Hedge Reserve".

4 Under Previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expenses, gains, or losses ae required to be presented in other comprehensive income.

21. Recent Accounting Pronouncements

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28,2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1,2018. The Company is evaluating the effect of this on the financial statements.

Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8-Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch -up approach)

The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1,2018.

The Company will adopt the standard on April 1,2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31,2018 will not be retrospectively adjusted. The company is evaluating the effect on adoption of Ind AS 115.

Note: 22.

Approval of financial statements

The financial statements for the year ended 31 March, 2018 were approved by the Board of Directors and authorise for issue on 18th May, 2018.

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Mar 31, 2014

1. Contingent liabilities not provided for in respect of:

Amount in Rs. Particulars For Year Ended For Year Ended 31.03.2014 31.03.2013

a) Guarantees given by Bank 30,408,000 24,131,000

b) Income tax matters in dispute 1,990,758 1,990,758

c) Other Matters - 5,220,874

Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company''s favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operations.

2. Obligations and commitments outstanding:

a) Estimated value of contracts remaining to be executed NIL 233,700,000 on capital account and not provided for (net of advances)

b) Bills discounted with banks 950,943,044 560,110,996

3. a) Income Tax Assessments have been completed up to assessment year 2011-12 except for the Assessment year 2003-04 where the department has raised demand of Rs.15,85,758 and for Assessment Year 2010-11 where the department has intaited penalty proceeding. The management forsees that existing provision are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8,05,000, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company''s policy a sum of Rs.100,643,439 (Previous year Rs. 76,315,803) has been shown as MAT credit entitlement under "Long term loan & advances".

4. Sales Tax assessments in different states have been completed up to the assessment year 2010-11. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account

5. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

6. Trade creditors include outstanding dues of small scale industries 19,58,714 (Previous year Rs. 24,25,132).The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them.

7 Derivative instruments and unhedged foreign currency exposure

As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs 38.93 Cr (P Y Rs. 32.65 crore).

8. a) The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

b) Inventories, loans & advances, trade receivables and other current / non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

9. Employee benefit obligations

Defined benefit plan

The employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensation absences is recognized in same manner as gratuity.

10. Related party disclosures

The information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures" and to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the auditors.

Names of related parties and description of relationship:

1. Holding Company Nil

2. Subsidiaries Company Nil

3. Fellow Subsidiaries Nil

4. Associates Nil

5. Key Management Personnel Dr. Rikhab C. Jain, Mr. Sanjay Jain, Mrs. Jyoti Jain

6. Relatives of Key Management Personnel Mrs. Kala Devi Jain

11. Segment information

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There is not other reportable segment.

Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

12. a) Figures in brackets, wherever given, are in respect of previous Year.

b) The company has reclassified previous year figures t conform to this year''s classification

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Mar 31, 2013

1 Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2. Contingent liabilities not provided for in respect of:

a) Guarantees given by Bank 24,131,000 10,900.000

b) Income tax matters in dispute 1,990,758 15,85,758

c) Other Matters 5,220,874 -

Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company''s favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operations.

3. a) Income Tax Assessments have been completed up to assessment year 2010-11 except for the Assessment year 2003-04 where the department has raised demand of Rs.15,85,758 and for Assessment Year 2010-11 where the department has disallowed expenditure of Rs.41,34,844 (with NIL Demand), which has been claimed in next assessment year. Assessment for the year 2011-12 is in progress, liability if any over and above the existing provisions will be provided only on completion of the assessments .The management forsees that existing provisions are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8,05,000, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company''s policy a sum of Rs.7,63,49,524 (Previous year Rs. 5,88,13,983) has been shown as MAT credit entitlement under "Long term loan & advances".

4. Sales Tax assessments in different states have been completed up to the assessment year 2009-10. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account

5. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

6. Trade creditors include outstanding dues of small scale industries 24,25,132 (Previous year Rs. 20,25,120).The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them.

7 Derivative instruments and unhedged foreign currency exposure

As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs 32.65 Cr (Previous Year NIL).

8. a) The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

b) Inventories, loans & advances, trade receivables and other current / non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

9. Employee benefit obligations

Defined benefit plan

The employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensation absences is recognized in same manner as gratuity.

a) Reconciliation of opening and closing balances of the present value of the defined benefit obligation

The expected rate in increase in salary considered in actuarial valuation is based on consideration of inflation, seniority, promotion, accretion, and other relevant factors including supply and demand in the employment market.

10. Related party disclosures

The information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures" and to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the auditors.

Names of related parties and description of relationship:

1. Holding Company Nil

2. Subsidiaries Company Nil

3. Fellow Subsidiaries Nil

4. Associates Nil

5. Key Management Personnel Dr. Rikhab C. Jain, Mr. Sanjay Jain, Mrs.Jyoti Jain

6. Relatives of Key Management Personnel Mrs. kala Devi Jain

*During the previous year remuneration has been restricted to Rs 4Lacs per months as in compliance to Section 198,309 and schedule XIII of the Companies Act, 1956 in view of current year Losses. The same has been considered as amount held in trust by concerned director as per section provision of section 309 of the Companies Act , 1956.

11. Segment information

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There is not other reportable segment.

Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

12. a) Figures in brackets, wherever given, are in respect of previous Year.

b) The company has reclassified previous year figures t conform to this year''s classification

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Mar 31, 2012

1 Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

a) Terms/rights attached to Equity Shares

Company has only one class of equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares

d) The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash nor has allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.

ii) Rupees Term Loan from Oriental Bank of Commerce (OBC), Punjab National Bank(PNB), State Bank of Mysore (SBM) and Indian Bank are secured by parri-passu charge on company's immoveable & moveable assets located at Gajroula, Avinashi, Rajula units and Wind Mills located at Govindhapuram & Kundadam Villages, Tirupur District of the company. Loans are further secured by personal guarantee of Shri Rikhab C. Jain, Chairman of the company. Term Loan carry ROI ranging from 12.75% to 13.50% p.a. The aforesaid interest rate is subject to benefit under TUF scheme of Government of India.

iii) Fixed Deposits carry interest @11.5%-13% and repayable within one to three Years from the date of Deposits.

iv) Borrowings from Directors and others is the amount inducted by the promoters as per the terms and conditions stipulated in sanctions of the loans by the bankers, are not repayable in next 12 Months therefore all such borrowings have been classified as "Long Term in nature"

The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") has been determined to the extent such parties have been identified by the company, on the basis of information and records available with them. This information has been relied upon by the auditors. Disclosure as required under section 22 of the Act, is as under. Disclosure in respect of interest due on delayed payment has been determined only in respect of payments made after the receipt of information, with regards to filing of memorandum, from the respective suppliers.

Direct taxes refundable represent amounts recoverable from the Income Tax Department for various assessment years. In respect of disputed demands, company has filed appeals which are pending at various levels and for assessment years where the issues have been decided in favour of the company, the company is in the process of reconciling / adjusting the same with the department. Necessary value adjustments shall be made on final settlement by the department.

In respect of subsidies receivable under the Technology Up-gradation Fund Scheme (TUFS) for Textiles established by Government of India, the lending institutions have yet to provide confirmation as to action taken by them towards claiming reimbursement of subsidies. Accordingly, subsidy receivable is subject to final adjustments that may arise on settlement of issues and actions taken by the lenders.

2. Contingent liabilities not provided for in respect of:

Amount in Rs.

As at 31.03.2012 As at 31.03.2011

a) Guarantees given by Bank 1,09,00,000 Nil

b) Income tax matters in dispute 15,85,758 15,85,758

Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company's favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company's financial position and results of operations.

3. Obligations and commitments outstanding:

a) Estimated value of contracts remaining to be executed 7,926,00,000 12,18,49,000 on capital account and not provided for (net of advances)

b) Bills discounted with banks 30,69,65,255 40,94,83,704

4. The company had contracted to sale Plant & Machinery of its plant location at Avinashi via Memorandum of Understanding (MOU) dated 06.12.2006. However the customer defaulted on the delivery terms and conditions and hence the company had to dispose balance machinery at a discount.

As per terms of MOU the company has filed a claim against the customer for the loss suffered amounting Rs.1,60,69,250 and interest amounting to Rs.45,60,580 in the year 2008-09. The management is confident that a sum of Rs. 96,43,327 shown as recoverable (pending settlement), will be realised in due course.

5. a) Income Tax Assessments have been completed up to assessment year 2009-10 except for the Assessment year 2003-04 where the department has raised demand of Rs. 15,85,758 and for Assessment Year 2009-10 where the department has disallowed expenditure of Rs 41,34,844(with NIL Demand), which has been claimed in next assessment year. Assessment for the year 2010-11 is in progress, liability if any over and above the existing provisions will be provided only on completion of the assessments .The management forsees that existing provisions are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8,05,000, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company's policy a sum of Rs.5,88,13,983 (Previous year Rs. 5,88,13,983) has been shown as MAT credit entitlement under "Long term loan & advances".

6. Sales Tax assessments in different states have been completed up to the assessment year 2007-08. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account

7. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

8. Trade creditors include outstanding dues of small scale industries 20,25,120 (Previous year Rs. 35,07,332).The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them.

9. Derivative instruments and unhedged foreign currency exposure

As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs NIL (Previous Year NIL).

10. a) The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management's opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

b) Inventories, loans & advances, trade receivables and other current / non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

11. Employee benefit obligations Defined benefit plan

The employee's Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensation absences is recognized in same manner as gratuity.

a) Reconciliation of opening and closing balances of the present value of the defined benefit obligation

The expected rate in increase in salary considered in actuarial valuation is based on consideration of inflation, seniority, promotion, accretion, and other relevant factors including supply and demand in the employment market.

12. Related party disclosures

The information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures" and to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the auditors.

*During the current year remuneration has been restricted to Rs 4Lacs per months as in compliance to Section 198,309 and schedule XIII of the Companies Act, 1956 in view of current year Losses. The same has been considered as amount held in trust by concerned director as per section provision of section 309 of the Companies Act , 1956.

13. Segment information

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There is not other reportable segment.

Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

14. a) Figures in brackets, wherever given, are in respect of previous Year.

b) Till the year ended 31 March 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

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Mar 31, 2011

Particulars Current Previous Year Year (Rs. in (Rs. in lakhs) lakhs) 1. Contingent Liabilities not provided for in respect of

a) Guarantees given by Banks Nil NIL

b) Export Bills discounted with banks under Irrevocable Letter of Credit 4,094.84 4,476.17

c) Income Tax liability not acknowledged and contested 15.86 15.86

2. Contract remaining to be executed on capital account is Rs. 1,218.49 lakhs (Previous year Rs. 937.45 lakhs) net of advances Rs. 164.95 Lakhs (Previous year Rs. 151.29 Lakhs).

3. The company had contracted to sale Plant & Machinery of its plant location at Avinashi via Memorandum of Understanding (MOU) dated 06.12.2006. However the customer defaulted on the delivery terms and conditions and hence the company had to dispose balance machinery at a discount.

As per terms of MOU the company has filed a claim against the customer for the loss suffered amounting Rs.160.69 lakhs and interest amounting to Rs.45.61 lakhs in the year 2008-09. The management is confident that a sum of Rs. 94.63 lakhs, shown as recoverable (pending settlement), will be realised in due course.

4. a) Income Tax Assessments have been completed up to assessment year 2008-09 except for the Assessment year 2003-04 where the department has raised demand of Rs. 15.86 lakhs and for Assessment Year 2008-09 where the department has disallowed expenditure of Rs 36.52 Lakhs(with NIL Demand), which are being contested. Assessment for the year 2009-10 is in progress, liability if any over and above the existing provisions will be provided only on completion of the assessments .The management forsees that existing provisions are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8.05 lakhs, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company's policy a sum of Rs.5,88,13,983 (Previous year Rs. 1,62,45,499) including Rs.4,25,68,484 (Previous year Rs.13,37,457) for the year has been shown as MAT credit entitlement under loan & advances.

5. Sales Tax assessments in different states have been completed up to the assessment year 2007-08. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account.

6. In the opinion of the Management, the value on realisation of current assets, loan and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

7. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

8. Trade creditors include outstanding dues of small scale industries Rs.35.89 lakhs (Previous year Rs. 22.78 lakhs) .The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the Auditors.

9. Disclosure in accordance with section 22 of Micro, small and Medium Enterprises Development Act, 2006

10. As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to NIL (Previous Year US $ 2.02 million).

11. a) Some of the debit and credit balances appearing under the head Fixed Deposits, Current Liabilities, Sundry Debtors and Loans & Advances are subject to confirmation / reconciliation.

b) Previous year figures have been regrouped or rearranged wherever considered necessary.

12. EMPLOYEE BENEFITS

As per Accounting Standard 15 “Employee Benefit” the disclosure of Employee Benefit, as defined in Accounting Standard are given below:-

Defined Benefit Plan

The employee's Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensation absences is recognized in same manner as gratuity.

13. SEGMENT INFORMATION

The Company operate under single business segment “Textiles”. Company deals in four product i.e. cotton, yarn, fabric and made- ups. There is not other reportable segment.

Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand “T.T”.

14. RELATED PARTY TRANSACTIONS

The information regarding related parties has been determined on the basis of criteria specified in AS-18 “Related Party Disclosures” and to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the auditors.

Names of related parties and description of relationship:

1. Holding Company Nil

2. Subsidiaries Company Nil

3. Fellow Subsidiaries Nil

4. Associates Nil

5. Key Management Personnel Dr. Rikhab C. Jain

Mr. Sanjay Jain Mrs. Jyoti Jain

6. Relatives of Key Management Personnel Nil

15. DEFERRED TAXES

Deferred taxes arise because of difference in treatment between financial accounting and tax accounting, as “Timing difference”. The tax effect of these timing differences is recorded as “deferred tax assets” (generally items that can be used as a tax deduction or credit in future periods) and “deferred tax liabilities” (generally items for which the Company has received a tax deduction, but have not yet been recorded in the statement of income).

Recognition of deferred tax assets has been restricted to the extent of deferred tax available. Based on schedule of reversal of timing differences giving rise to deferred tax liabilities, the management believes there is requisite degree of virtual certainty that the deferred tax assets, to the extend recognised, would be realised

16. ADDITIONAL INFORMATION PURSUANT TO SCHEDULE VI TO THE COMPANIES ACT, 1956:

(A) Break-up of expenditure on employees who are in receipt of or were entitled to receive remuneration amounting in aggregate to Rs.24 laks or more per annum or Rs.200,000/- per month if employed for part of the year

*As certified by the Management. Since the company installation can technically be considered as multipurpose plants, their capacity is variable in line with process improvements and the product mix adopted from time to time. The figures given in relation to installed capacities are therefore, approximate and refer to an assumed product mix. Figures in Bracket *( )* represent previous year.

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Mar 31, 2010

CurrentYear PreviousYear (Rs. in lakhs) (Rs. in lakhs) 1. Contingent Liabilities not provided for in respect of a) Guarantees given by Banks NIL NIL b) Export Bills discounted with banks under Irrevocable Letter of Credit 4476.17 1974.15 c) Income Tax liability not acknowledged and contested 15.86 15.86

2. Contract remaining to be executed on capital account is Rs. 937.45 lakhs (Previous year Rs. 2674 Lakhs) net of advances Rs.786.16 Lakhs (Previous year Rs. 509 Lakhs).

3. The company had contracted to sale Plant & Machinery of its plant location at Avinashi via Memorandum of Understanding (MOU) dated 06.12.2006. However the customer defaulted on the delivery terms and conditions and hence the company had to dispose balance machinery at a discount.

As per terms of MOU the company has filed a claim against the customer for the loss suffered amounting Rs.160.69 lakhs and interest amounting to Rs.45.61 lakhs in the year 2008-09. The management is confident that a sum of Rs. 96.43 lakhs, shown as recoverable (pending settlement), will be realised in due course.

4. a) Income Tax Assessments have been completed upto assessment year 2006-07 except for the Assessment year 2003-04 where the department has raised demand of Rs. 15.86 lakhs which is being contested. Assessment for the year 2007-08 is in progress, liability if any over and above the existing provisions will be provided only on completion of the assessments .The management forsees that existing provisions are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8.05 lakhs, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the companys policy a sum of Rs. 16245507.60 (Previous year Rs. 14908042) including Rs. 1337465.60 (Previous year Rs. Nil) for the year has been shown as MAT credit entitlement under Loan & advances.

5. Sales Tax assessments in different states have been completed upto the assessment year 2006-2007. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account.

6. In the opinion of the Management, the value on realisation of current assets. Loan and advances in the ordinary course of business would not be Less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

7. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

8. Trade creditors include outstanding dues of small scale industries Rs. 22.78 lakhs (Previous year Rs. 12.76 lakhs) .The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the Auditors.

9. Disclosure in accordance with section 22 of Micro, small and Medium Enterprises Development Act, 2006

This information as required to be disclosed under the Micro, small and Medium Enterprises Development Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

10. During the year, the company has capitalised the borrowing cost of Rs. 98.01 lakhs, incurred on acquisition of fixed assets. The allocation of interest on borrowings, for the purpose of capitalisation, in respect of funds borrowed and used for the purpose of obtaining a qualifying asset has been done on the basis of use of funds as per the best possible estimates.

11. As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to US $ 2.02 million.

12. a) Some of the debit and credit balances appearing underthe head Fixed Deposits, Current Liabilities, Sundry Debtors and Loans & Advances are subject to confirmation / reconciliation.

b) Previous year figures have been regrouped or rearranged wherever considered necessary.

13. EMPLOYEE BENEFITS

As per Accounting Standard 15 "Employee Benefit" the disclosure of Employee Benefit, as defined in Accounting Standard are given below:-

Defined Benefit Plan

The employees Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensation absences is recognized in same manner as gratuity.

The expected of rate in increase in salary considered in actuarial valuation is based on consideration of inflation, seniority, promotion, accretion, and other relevant factors including supply and demand in the employment market. The above information is certified by actuary.

14. SEGMENT IN FORMATION

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There above information is certified by actuary Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

15. DEFERRED TAXES

Deferred taxes arise because of difference in treatment between financial accounting and tax accounting, as "Timing difference". The tax effect of these timing differences is recorded as "deferred tax assets" (generally items that can be used as a tax deduction or credit in future periods) and "deferred tax liabilities" (generally items for which the Company has received a tax deduction, but have not yet been recorded i n the statement of income). The principal components of the net deferred tax balance are as follows: