1. Corporate information
Tirupati Sarjan Limited (the 'Company') is a public limited Company incorporated in India with its registered office at A - 11, 12, 13
Satyamev Complex, Opp Gujarat High Court, S.G. Highway, Ahmedabad - 380060, Gujarat. The equity shares of the Company
are listed on recognised stock exchange in India. The Company is principally engaged in the civil construction and real estate
development business. The Company specialised in developing residential, commercial and government projects across Asia; in
particular India where we have number of projects in development. The company has undertaken many projects of construction
of hospitals, colleges and infrastructure development work like road development, canals bridge etc. In a short span of time
Tirupati group has curved a niche for itself for providing affordable residential and commercial real estate solutions that offer
value for money to its customer.
2. Bases of Preparation
2.1 Statement of Compliance:
The financial statements have been prepared in accordance with Ind AS notified under the Companies ('Indian Accounting
Standards) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 (""the Act"") and other relevant
provisions of the Act and other accounting principles generally accepted in India.
Up to the financial year ended 31stMarch, 2017, the Company prepared its financial statements in accordance with the
requirements of the previous applicable GAAP, which included the Standards notified under the Companies (Accounting
Standards) Rules, 2006 notified under Section 133 of the Act and other relevant provisions of the Act.
2.2 Basis of Measurement
The Financial Statements have been prepared on the historical cost basis.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
2.3 Functional and presentation currency
Indian rupee is the functional and presentation currency.
2.4 Use of estimates
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and
assumptions.
These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets
and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of
revenues and expenses during the period.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes
in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are
disclosed in the notes to the financial statements.
Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the
use of assumptions in these financial statements are:
Revenue recognition of construction services based on percentage of completion method
Useful lives of Property, plant and equipment
Valuation of financial instruments
Provisions and contingencies
Income tax and deferred tax
Measurement of defined employee benefit obligations
3. Significant Accounting Policies
3.1 Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Contract Revenue :
When the outcome of a fixed price construction contract cannot be estimated reliably, contract revenue is recognized only to the
extent of cost incurred that it is probable will be recoverable.
When the outcome of a fixed price contract is ascertained reliably, contract revenue is recognized by reference to the stage of
completion of the contract activity at the end of the reporting period.
The outcome of a fixed price construction contract can be estimated reliably when total contract revenue can be measured
reliably, it is probable that economic benefits associated with the contract will flow to the company, contract costs to complete the
contract and stage of contract completion at the end of the reporting period can be measured reliably and contract cost
attributable to the contract can be identified and measured reliably.
Percentage of completion is determined based on the survey of work performed at the end of each year. The effect of a change in
the estimate of contract revenue or contract costs, or the effect of a change in the estimate of the outcome of a contract, is
accounted for as a change in accounting estimate and the effect of which are recognized in the Statement of Profit and Loss in the
period in which the change is made and in subsequent periods.
Contract revenue comprises the initial amount of revenue agreed in the contract, the variations in contract work, claims and
incentive payments to the extent that it is probable that they will result in revenue and they are capable of being reliably measured.
Contract revenue is measured at the fair value of the consideration received or receivable.
Contract cost associated with contract revenue is recognized as expense by reference to the stage of completion of the contract
activity at the end of the reporting period. Contract cost comprises of cost that relate directly to the specific contract, cost that are
attributable to contract activity in general and can be allocated to the contract and such other cost as are specifically chargeable to
the customer under the terms of the contract.
An expected loss on construction contract is recognized as an expense immediately when it is certain that the total contract costs
will exceed the total contract revenue.
Interest Income :
Interest income is recognised on a time proportion basis taking into account the amount outstanding and applicable interest rate.
Interest income is recognised using effective interest method. The effective interest rate is the rate that exactly discounts
estimated future cash receipts through expected life of the financial asset to the gross carrying amount of the financial asset.
When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual
terms of the financial instrument but does not consider the expected credit loss.
Dividend Income :
Dividend Income is recognized when right to receive the same is established.
3.2 Property ,Plant and equipment
Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.
The cost comprises the purchase price, borrowing cost if capitalization criteria are met and any attributable cost of bringing the
assets to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic
benefits associated with these will flow to the company and the cost of the item can be measured reliably. All other expenses on
existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the
statement of profit and loss for the period during which such expenses are incurred.
For transition to Ind AS, the carrying value of Property Plant and Equipment under previous GAAP as on 01 April 2016 is regarded
as its cost. The carrying value was original cost less accumulated depreciation and cumulative impairment(if any).
Gain or loss arising from de-recognition of property, plant & equipment are measured as the difference between the net disposal
proceeds and carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.
Depreciation is provided for all Property, Plant and Equipment on straight-line method such as useful life of assets is given under
Company's Act 2013.
Depreciation is provided for all Property, Plant and Equipment as per the useful life prescribed in the Schedule II of the Companies
Act, 2013 except in respect of plant and machineries used other than in mining activity, where less useful life is considered than
those prescribed in schedule II.
The residual values, useful lives, and methods of depreciation of Property plant and equipment are reviewed at the end of each
reporting period and adjusted prospectively, if appropriate.
The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees.
3.3 Intangible Assets
An Intangible asset is recognised, only where it is probable that future benefits attributable to the asset will accure to the enterprise
and the cost can be measured reliably.
Intangible assets are stated at cost, less accumulated amortization and impairment losses, if any.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as intangible assets under
development.
Intangible assets are amortized over their estimated useful life. The estimated useful life of the intangible assets and the
amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed
pattern. Software being Intangible Assets used at Head office and work-shop are amortized over a period of three years and
software used at Project sites are amortized over the project completion period.
In respect of intangible assets acquired / purchased during the year, amortization is provided on a pro-rata basis from the date on
which such asset is ready to use. As on 31st March, 2025 there is no Intangible Assets exists in Balance sheet.
3.4 Financial instruments
3.4.1 Initial Recognition
All financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and liabilities, which are not at fair value through profit or loss, are adjusted to the fair value
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value
through profit and loss are recognised immediately in statement of profit and loss.
3.4.2 De-recognition
The company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it
transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. A financial liability is de-recognized
when obligation specified in the contract is discharged or cancelled or expires.
3.5 Income Tax
Income tax expense comprises current tax, deferred tax and MAT Credit.
Current Tax
Current tax is recognized in statement of profit or loss.
Current tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities,
using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Current tax assets and current tax liabilities are offset, where company has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Deferred Tax
Deferred tax is recognized in statement of profit or loss.
Deferred tax liabilities are recognized for all taxable temporary differences.
Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax losses and carry forward
of unused tax credits to the extent that it is probable that taxable profit will be available against which those temporary differences,
losses and tax credit can be utilized, except when deferred tax asset on deductible temporary differences arise from the initial
recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects
neither accounting profit nor taxable profit or loss.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized
or the liability is settled, based on the tax rules and tax laws that have been enacted or substantively enacted by the end of the
reporting period.
Deferred tax assets and deferred tax liabilities are offset, where company has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realized.
MAT Credit
Minimum Alternate Tax (MAT) paid in a year is charged to statement of profit and loss as current Tax. The company recognizes
MAT Credit available as an assets only when and to the extent that there is convincing evidence that the company will pay normal
income tax during the specified period, i.e. the period for which MAT credit is allowed to be carried forward. In the year in which the
Company recognizes MAT credit as an asset in accordance with the Guidance Note on "Accounting for Credit Available in respect
of Minimum Alternative Tax under Income Tax Act , 1961” , the said assets is created by way of credit to the statement of Profit and
loss and shown as "Deferred Tax”. The Company reviews the "MAT credit entitlement” asset at each reporting date and writes
down the assets to the extent the company does not have convincing evidence that it will pay normal tax during the specified
period.
3.6 Borrowing costs
Borrowing cost includes interest and other costs that company has incurred in connection with the borrowing of funds. Borrowing
costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of
time to get ready for its intended use or sale are capitalized
All other borrowing costs are expensed in the year they occur.
Investment income earned on temporary investment of specific borrowing pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalization.
3.7 Employee Benefits
Contribution to "Defined Contribution Schemes” such as Provident Fund is charged to the statement of profit and loss account as
incurred. Provident Fund contribution and Employee state insurance are made to the respective Government Administered.
Company has no further obligation beyond this contribution charged in financial statement. The company recognizes contribution
payable to the provident fund scheme and Employee state insurance as expenditure, when an employee renders the related
service.
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