2. Summary of Material Accounting Policies
Recent Standards Adopted

New and Amended Standards Adopted by the Company:

The Company has applied the following amendments for the first time for the annual reporting period commencing
April 1,2024:

Ind AS 117 - Insurance Contracts

Ind AS 117 is a comprehensive accounting standard covering recognition, measurement, presentation, and
disclosure of insurance contracts, replacing Ind AS 104. It applies to all insurance contracts and certain financial
instruments with discretionary participation features. TTL continues to account for financial guarantee contracts
under Ind AS 109, and therefore Ind AS 117 does not have a significant impact on its financial statements.

Ind AS 116 - Leases (Amendment - Sale and Leaseback)

The amendment notified on September 9, 2024, addresses accounting for sale and leaseback transactions with
variable lease payments. While this does not alter lease accounting in general, TTL reviewed the guidance and
concluded that it has no material impact on the current or prior reporting periods.

New Standards/Amendments Not Yet Effective

As of March 31, 2025, the Ministry of Corporate Affairs (MCA) has not notified any additional new Ind AS or
amendments applicable to the Company beyond those mentioned above.

All significant accounting policies applied in the preparation of these financial statements are disclosed
below. These policies have been consistently applied to all periods presented unless otherwise stated.

2.1 Basis of Preparation

• These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (‘the Act’) (to the extent notified), presentation requirements
of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), and the Companies
(Indian Accounting Standards) Rules, as amended and guidelines issued by the Securities and Exchange
Board of India (SEBI).

• They follow the historical cost convention on an accrual basis, except for certain items measured at fair value
(e.g. financial instruments and employee benefit plan assets).

• TTL discloses only material accounting policy information in line with revised Ind AS 1 and Ind AS 34.

2.2 Current v/s non-current classification

The company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset /liability is current when it is:

• Expected to be realised/settled or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised / settled within twelve months after the reporting period; or

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

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

All other assets/ liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.3 Functional and Presentation Currency

The financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency. All
figures are rounded to the nearest lakh unless otherwise stated.

• PPE is tested for impairment when indicators exist. Gains/losses on disposal are recognised in profit or loss.

2.6 Intangible Assets

• Intangible assets are capitalised at cost if future economic benefit is probable.

• Amortised over estimated useful life, generally 3 years for software.

• Reviewed for impairment indicators annually.

TTL reviewed Intangible Assets for any impact of the new Ind AS 117 standard effective from August 12,2024 and
concluded that since it does not issue insurance contracts, the standard does not apply.

2.7 Leases (Ind AS 116)

• TTL recognises right-of-use (ROU) assets and lease liabilities at present value of lease payments.

• Lease liabilities are discounted using TTL’s incremental borrowing rate.

• ROU assets are depreciated over lease term.

• Short-term and low-value leases are expensed.

The Company has evaluated the amendments to Ind AS 116 relating to sale and leaseback transactions, effective
from September 9, 2024, and concluded that these do not materially impact its current or prior reporting periods.

2.8 Revenue Recognition (Ind AS 115)

TTL follows the five-step revenue recognition model:

1. Identify the contract

2. Identify performance obligations

3. Determine the transaction price

4. Allocate transaction price

5. Recognise revenue upon satisfaction of obligations.

However, when there is uncertainty as to collectability, revenue recognition is postponed until such uncertainty is
resolved.

Revenue categories:

• Time & Material : Recognised as services are rendered.

• Fixed Price : Recognised based on percentage-of-completion.

• Product Sales : On delivery and transfer of control.

• Service Concessions : Based on usage.

2.9 Other Income

• Interest : Recognised using effective interest rate (EIR) method.

• Dividends : Recognised when entitlement is established.

• Others : Recognised when collection is probable and measurable.

2.10 Foreign Currency Transactions

• Transactions recorded at exchange rates on transaction date.

• Monetary items retranslated at year-end rates; differences go to profit or loss.

• Non-monetary items held at historical cost.

2.11 Employee Benefits (Ind AS 19)

• Short-term benefits : Recognised as expense when incurred.

• Defined contribution plans : PF/ESI - expensed when due.

• Defined benefit plans : Gratuity - actuarially valued; remeasurements in OCI.

• Long-term benefits : Leave encashment actuarially valued.

• Termination benefits : Recognised on formal commitment.

2.12 Borrowing Costs

• Capitalised if directly attributable to qualifying assets.

• Others expensed as incurred.

• Exchange differences considered borrowing cost if applicable.

2.13 Income Taxes (Ind AS 12)

• Current tax: Based on taxable income under the Income Tax Act.

• Deferred tax: Recognised on all temporary differences.It is recognised in the statement of profit and loss
except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI.

This policy reflects the amendment to Ind AS 12 that narrows the initial recognition exemption. TTL now recognises
deferred tax on transactions that result in equal and offsetting temporary differences, such as lease liabilities and
corresponding right-of-use assets.

2.14 Impairment

• Financial assets: Assessed using expected credit loss (ECL) model.

• Non-financial assets: Impairment tested when indicators exist. Recoverable amount is higher of fair value
less cost and value in use.

The impairment calculations involve accounting estimates as per Ind AS 8, especially for DCF models and growth
assumptions.

2.15 Fair Value Measurement (Ind AS 113)

• Based on exit price in orderly transaction.

• Valuation hierarchy:

o Level 1: Quoted prices
o Level 2: Observable inputs
o Level 3: Unobservable inputs

2.16 Financial Instruments (Ind AS 107, 109)

• Initial measurement: At fair value.

• Classification: Amortised cost, FVTOCI, FVTPL.

• TTL applies hedge accounting when applicable.

As required by Ind AS 107, TTL discloses the measurement basis used for financial instruments. Classification is
based on business model and cash flow characteristics.

The Company continues to account for financial guarantee contracts under Ind AS 109, and accordingly, the
introduction of Ind AS 117 does not result in any changes to its accounting policies.

2.17 Inventories

• Valued at lower of cost and net realisable value. Cost includes purchase and directly attributable costs.

2.18 Government Grants

• Revenue grants : Matched to expenses.

• Capital grants : Deferred and amortised over asset life.