(j) Provisions, contingent Liabilities & Contingent Assets
As per IND AS 37 Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed
in the financial statements. A provision is recognized when an enterprise has a present obligation as a result of past event(s) and
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of
which a reliable estimate can be made for the amount of obligation.
(k) Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax law),
deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the
year).
Deferred Taxation
The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that
have been enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognised only to the extent there
is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed depreciation or carried forward
loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of the assets. Deferred
tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/
virtually certain (as the case may be) to be realised.
Minimum Alternate Tax
Minimum Alternate Tax ('MAT') credit is recognised as an asset only when and to the extent there is convincing evidence that
the Company will pay normal income-tax during the specified period. In the year in which the MAT credit becomes eligible to be
recognised as an asset in accordance with the recommendations contained in the guidance note issued by Institute of Chartered
Accountants of India ('ICAI'), the said asset is created by way of a credit to the statement of profit and loss. The Company reviews
the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer
convicing evidence to the effect that Company will pay normal income-tax during the specified period.
(l) Earning per share
Basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of
the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of
equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than
the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding
change in resources.
Diluted earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of
the Company and 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. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value
(i.e. the average market value of the outstanding equity shares).
(m) Leases
The determination of whether an arrangement is a lease, or contains a lease, is based on the substance of the arranagement and
requires an assessment of whether the fulfillment of the arranagment is dependent on the use of a specific asset or assets or
whether the arrangement conveys a right to use the asset.
For arrangements entered into prior to 1 April 2018, the Company has determined whether the arrangement contain lease on the
basis of facts and circumstances existing on the date of transition.
Note 32: Employees stock option grants
(A) Description of share based payment
The company has decided to give ESOP to its Director, KMP and Employees of the company which were duly place in the board
meeting and approved by the shareholder the details of which are mention below.
The Objective of this scheme is to reward the employees of the company for their performance and to motivate them to contribute
to the growth and profitability of the company
Fair Value
Even though Tirupati Fincorp shares are listed, market price could not be considered due to insufficient trading as the shares are
restricted for trading as per GSM.
Risk free rate of return
Interest rate applicable for a maturity equal to expected life of options based on zero coupon yield curve for Government securities.
Volatility
This represents a measure of expected level of fluctuation in the value of equity shares
Measured using standard deviation as a basis
If shares are listed, then their volatility can be computed directly.
If shares are unlisted, then generally volatility is computed for shares of comparable companies and then used as a proxy.
Historical volatility analysis is usually performed for similar time period as the future expected option life considered in the
option valuation model .
In this scenario, even though shares are listed, the shares are restricted by GSM for trading. So historical volatility of similar
comparable company ' Muthoot fincorp' is considered"
Note 33: Additional Regulatory information
(i) Disclosure of Capital to risk-weighted asset (CRAR), Tier I, Tier II CRAR, and liquidity coverage ratios required under para (WB)
(xvi) of division III of schedule III to the Act, are not applicable to the company as it is in financil service business and not an NBFC
registered under section 45-IA of Reserve bank of India Act, 1934.
(ii) The Company does not hold any immovable properties, hence disclosure relating to title deeds of all immovable properties are held
in the name of the company is not applicable to us.
(iii) Loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (Refer note 25)
(iv) The company does not hold any benami property in its name. There are no proceedings initiated or pending againg the company
under the Benami Transaction (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(v) There are no borrowings from banks or financial institutions on the basis of security of current assets
(vi) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any
government authority.
(vii) There are no transaction with company struct off under section 248 of the companies Act, 2013 or section 560 of Companies
Act, 1956.
(viii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(ix) The Company does not have any subsidary company and hence there is no non compliance under clause (87) of section 2 of the
Act read with Companies (Restriction on number of layers) Rules, 2017
(x) The Company has not entered into scheme of arrangement during the year.
The Company has not advanced or loaned or Invested funds to any other persons or entities, including foreign entities (Intermediaries)
with the understanding that the intermediary shall:
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or
(xi) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The Company has not received any fund from any person or entities, including foreign entities (Funding parties) with the understanding
(whether recorded in writing or otherwise) that the company shall
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
(xii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(xiii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income tax Act, 1961 (such as , search or survey or any other
relevant provision of the income tax act, 1961).
(xiii) The Company is not liable to spend for CSR as per Section 135 of the company act.
(xiv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
As per our attached report of even date
For JCR & Co. On behalf of the Board of Directors
(Chartered Accountants) Tirupati Fincorp Limited
Firm Registration No. 105270W CIN No: L67120RJ1982PLC002438
CA Mitesh Chheda Bansri Dedhia Sheetal Shah
(Partner) Director Director
Membership No. 160688 DIN: 08627610 DIN: 08364948
Place: Mumbai Ameya Bodas
Date : 29th May, 2025 Company Secretary
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