Notes to Accounts of Typhoon Financial Services Ltd.

Mar 31, 2024

xiv. Provisions

A provision is recognized when an enterprise has a present obligation (legal or constructive) as
result of past event and it is probable that an outflow of embodying economic benefits of resources
will be required to settle a reliably assessable obligation. Provisions are determined based on
best estimate required to settle each obligation at each balance sheet date. 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 recognised as a finance cost.

xv. Contingent liabilities & Contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond
the control of the company or a present obligation that is not recognized because it is not probable

that an outflow of resources will be required to settle the obligation. The company does not
recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised in the financial statements. the nature of such assets and an
estimate of its financial effect are disclosed in notes to the financial statements.

xvi. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprises cash at bank and
in hand and short-term investments with an original maturity of three months or less.

2.2 Critical accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements in conformity with the recognition and
measurement principles of Ind AS requires the management to make judgements, estimates and
assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods. Estimates and underlying assumptions are
reviewed on an ongoing basis.

(a) Judgements

In the process of applying the accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the financial statements:
Business model assessment

Classification and measurement of financial assets depends on the results of the SPPI and the
business model test. The Company determines the business model at a level that reflects how
group of financial assets are managed together to achieve a particular business objective. This
assessment includes judgement reflecting all relevant evidence including how the performance
of the assets is evaluated and their performance is measured, the risks that affect the performance
of the assets and how these are managed and how the managers of the assets are compensated.
The Company monitors financial assets measured at amortised cost that are derecognised prior
to their maturity to understand the reason for their disposal and whether the reasons are consistent
with the objective of the business for which the asset was held. Monitoring is part of the Company''s
continuous assessment of whether the business model for which the remaining financial assets
are held continues to be appropriate and if it is not appropriate whether there has been a change
in business model and so a prospective change to the classification of those assets.

Significant increase in credit risk

ECL is measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL for
stage 2 or stage 3 assets. An asset moves to stage 2 when its credit risk has increased significantly
since initial recognition. Ind AS 109 does not define what constitutes a significant increase in
credit risk. In assessing whether the credit risk of an asset has significantly increased the Company
takes into account qualitative and quantitative reasonable and supportable forward-looking
information.

Provisions

The timing of recognition and quantification of the liability (including litigations) requires the
application of judgement to existing facts and circumstances, which can be subject to change.
The carrying amounts of provisions and liabilities are reviewed regularly and revised to take
account of changing facts and circumstances.

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that
taxable profit will be available against which the losses can be utilised. Significant management
judgement is required to determine the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable profits together with future tax planning
strategies.

Materiality

Ind AS applies to items which are material. Management uses judgement in deciding whether
individual items or groups of items are material in the financial statements. Materiality is judged by
reference to the nature or magnitude or both of the item. The deciding factor is whether omitting or
misstating or obscuring an information could individually or in combination with other information
influence decisions that primary users make on the basis of the financial statements. Management
also uses judgement of materiality for determining the compliance requirement of the Ind AS.
(b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are described below. The Company based
its assumptions and estimates on parameters available when the financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may
change due to market changes or circumstances arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when they occur.

Impairment of financial assets

The measurement of impairment losses across all categories of financial assets requires
judgement, in particular, the estimation of the amount and timing of future cash flows and collateral
values when determining impairment losses and the assessment of a significant increase in
credit risk. These estimates are driven by a number of factors, changes in which can result in
different levels of allowances.

The Company''s ECL calculations are outputs of models with a number of underlying assumptions
regarding the choice of variable inputs and their interdependencies. Elements of the ECL models
that are considered accounting judgements and estimates include:

- Probabilities of defaults (PDs) the calculation of which includes historical data, assumptions
and expectations of future conditions.

- The Company''s criteria for assessing if there has been a significant increase in credit risk
and so allowances for financial assets should be measured on a life-time expected credit
loss model basis and the qualitative assessment.

- The segmentation of financial assets when their ECL is assessed on a collective basis.

It is Company''s policy to regularly review its models in the context of actual loss experience and
adjust when necessary.

Impairment of Non-financial assets

In case of non-financial assets, assessment of impairment indicators involves consideration of
future risks. Further, the company estimates asset''s recoverable amount, which is higher of an
asset''s or Cash Generating Units (CGU''s) fair value less costs of disposal and its value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value
using pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less costs of disposal, recent market
transactions are taken into account, if no such transactions can be identified, an appropriate
valuation model is used.

Fair value measurement of Financial Instruments

In estimating the fair value of financial assets and financial liabilities, the Company uses market
observable data to the extent available. Where such Level 1 inputs are not available, the Company
establishes appropriate valuation techniques and inputs to the model. The inputs to these models
are taken from observable markets where possible, but where this is not feasible, a degree of
judgment is required in establishing fair values. Judgments include considerations of inputs such
as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect
the reported fair value of financial instruments.

2.3 Amendments to Ind AS

The Ministry of Corporate Affairs notifies new standards / amendments to various Ind AS during the
financial year. The Company has adopted such amendments and evaluated that such amendments
does not have any material impact on the financial statements of the Company.

b. Terms/rights attached to equity shares

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

In the event of liquidation of the company, the holders of equity shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential amounts. The distribution
will be in proportion to the number of equity shares held by the shareholders.

21. Fair value hierarchy:

All assets and liabilities for which fair value is measured or disclosed in the financial statements are

categorised within the fair value hierarchy, described as follows, based on the lowest level input that

is significant to the fair value measurement as a 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, or

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

Valuation Methodology

(i) The investments included in Level 1 of fair value hierarchy have been valued using quoted
market prices of underlying instruments. The investments included in Level 2 of fair value hierarchy
have been valued using quotes available for similar assets and liabilities in the active market. The
investments included in Level 3 of fair value hierarchy are valued on the basis of valuation reports
provided by external valuers with the exception of certain investments, where cost has been
considered as an appropriate estimate of fair value because of a wide range of possible fair value
measurements and cost represents the best estimate of fair values within that range.

(ii) The fair value of other receivables, other payables and other financial assets and liabilities is
considered to be equal to the carrying amounts of these items due to their short-term nature.
Similarly, unquoted equity instruments where most recent information to measure fair value is
insufficient, or if there is a wide range of possible fair value measurements, cost has been
considered as best estimate of fair value and has been excluded in the fair value measurement
disclosed above.

(iii) The fair value of the financial assets and financial liabilities is included at the amount at which the
instruments could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.

(iv) Management uses its best judgement in estimating the fair value of its financial instruments.
However, there are inherent limitations in any estimation technique. Therefore, for substantially
all financial instruments, the fair value estimates presented above are not necessarily indicative
of the amounts that the company could have realised or paid in sale transactions as of respective
dates. As such, fair value of financial instruments subsequent to the reporting dates may be
different from the amounts reported at each reporting date.

(v) There has been no change in the valuation methodology for Level 3 inputs during the year. There
were no transfers between Level 1 and Level 2 during the year.

22. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise other payables. The main purpose of these
financial liabilities is to support Company''s operations. The Company''s principal financial assets
include Loans and Investments that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company has a risk
management policy which covers risks associated with the financial assets and liabilities. The risk
management policy is approved by the Board of Directors of the Company. The focus is to assess the
unpredicability of the financial environment and to mitigate potential adverse efforts on the financial
performance of the Company.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. The Company has quoted investments which are exposed to
fluctuations in stock prices. Such changes in the values of financial instruments may result from changes
in the interest rates, credit, liquidty and other market changes.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities, primarily loans, and from its other financing activities. Credit risk encompasses both, the
direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Credit risk is controlled by analysing credit limits and creditworthiness of counter parties on continuous
basis with appropriate approval mechanism for sanction of credit limits.

Financial Instrument and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company in
accordance with the Company''s policy. The Company''s maximum exposure to credit risk for the
components of the statement of financial position at March 31,2024 and March 31,2023 is the carrying
amounts.

Liquidity and interest risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risk to the Company''s reputation. The Company''s financial
liabilities are due for maturity within 1 year.

Since the Company does not have any financial assets or financial liabilities bearing floating interest
rates, any change in interest rates at the reporting date would not have any significant impact on the
standalone financial statements of the Company.

23. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all
other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company''s capital management is to maximise the shareholder value.

The gearing ratio at end of the reporting period was as follows.

25. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

Government of India has promulgated the Act namely "The Micro, Small and Medium Enterprises
Development Act, 2006" which comes into force with effect from 2^nd October 2006. The Company has,
during the year, not received any intimation from any of its creditors regarding their status under the
said act and hence disclosure, if any, relating to amount unpaid as at the year end along with interest
paid/payable as required under the said act have not been given.

26. Disclosure required under Section 186(4) of the Companies Act 2013

The Company being an NBFC company, provisions of Section 186 of the Companies Act 2013 and
provisions of the Companies (Acceptance of Deposits) Rules, 2014 are not applicable.

27. Disclosures pursuant to Rule 16A of the Companies (Acceptance of Deposits) Amendment Rules,
2016

The Company has not received any amount from its directors during the financial year.

28. Additional Disclosure pursuant to the RBI Guidelines has been given below.

(a) Particulars as required to be furnished by a non-deposit taking Non-Banking Financial Companies
as required in terms of as required in terms of Non-Banking Financial Company -Non-Systemically
Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 as updated in the Master
Direction DNBR.PD.007/03.10.119/2016-17 updated as on March 09, 2017, issued by the RBI is
given in Annexure - I attached hereto.

For and on behalf of the Board of Directors of
In terms of our report of the even date annexed hereto: TYPHOON FINANCIAL SERVICES LIMITED

For Sahib S Choudhary & Co.

Ashok Kumar Chhajer Managing Director

Chartered Accountants

Firm''s Registration No. 326269E ^{(DIN : 00280185)}

Sushma Chhajer Director

(DIN : 00280231)

"^{gh Choudhary} Shruti A. Chhajer Chief Financial Officer

^{Membership N}°. ⁰⁶⁵²⁰¹ Richa A. Shah Company Secretary

Place : Kolkata Place : Ahmedabad

Date : May 18, 2024 Date : May 18, 2024

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Mar 31, 2014

1. Terms/rights attached to equity shares

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

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential allotments. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Segment Information

As the company's business activity falls within a single primary business segment the disclosure requirement of AS 17 (Segment Reporting) issued by the Institute of Chartered Accountants of India is not applicable

Key Management Personnel

Ashok Ratanchand Chhajer

Sushma Chhajer

Kashyap Rajendrabhai Mehta

Enterprises owned or significantly influenced by Key Management Personnel

Gujarat Craft Industries Ltd.

Woodland Consultancy Service Pvt. Ltd.

Related Party Transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year :

3. Particulars as per RBI Notification

Particulars as required to be furnished by a non-deposit taking Non-Banking Financial Companies as required in terms of para 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007) vide notification no. DNBS. 192 / DG (VL)-2007 dated February 22, 2007, issued by the RBI is given in Annexure – I attached hereto.

4. Previous Year Figures

The company has reclassified previous year figures to conform to this year's classification.