We have audited the accompanying financial statements of Tirupati Sarjan Limited ("the Company”), which comprise the
balance sheet as at March 31,2025, and the Statement of Profit and Loss and statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements
give the information required by section 133 the Companies Act, 2013 ('Act') in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,
2025, its profit and cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the standards on auditing specified under section 143 (10) of the Companies Act,
2013. Our responsibilities under those Standards are further described in the auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the Company in accordance with the code of ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements
under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the code of ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the standalone financial statement.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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Revenue recognition for real estate projects
(as described in note 3.1 of note of the standalone Ind AS financial statements)
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The Company applies Ind AS 115 for recognition of revenue
from real estate projects, which is being recognised at a point
in time upon the Company satisfying its performance
obligation and the customer obtaining control of the
underlying asset.
Considering application of Ind AS 115 involves significant
judgment in identifying performance obligations and
determining when 'control' of the asset underlying the
performance obligation is transferred to the customer, the
same has been considered as key audit matter.
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Our audit procedures included:
• Read the Company's revenue recognition accounting
policies and assessed compliance of the policies with Ind AS
115.
• Obtained and understood revenue recognition process
including identification of performance obligations and
determination of transfer of control of the asset underlying
the performance obligation to the customer.
• Read the legal opinion obtained by the Company to
determine the point in time at which the control is transferred
in accordance with the underlying agreements.
• Tested, revenue related transactions with the underlying
customer contracts, sale deed and handover documents,
evidencing the transfer of control of the asset to the customer
based on which revenue is recognised.
• Assessed the revenue-related disclosures included in Note
3.1 of note to the Standalone financial statements.
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Assessing the carrying value of Inventory and advances paid for land procurement (as described in note 8 of
notes to the standalone Ind AS financial statements)
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The Company's inventory comprises of ongoing and
completed real estate projects, launched projects and
development rights. As at March 31, 2025, the carrying
values of inventories amounts to Rs. 6790.08 lakhs.
The inventories are carried at the lower of the cost and net
realizable value ('NRV'). The determination of the NRV
involves estimates based on prevailing market conditions,
current prices, and expected date of commencement and
completion of the project, the estimated future selling price,
cost to complete projects and selling costs.
Considering significance of the amount of carrying value of
inventories in the financial statements and the involvement
of significant estimation and judgment in such assessment of
NRV, the same has been considered as key audit matter.
Further, the Company has made various advances and
deposits to various parties during the ordinary course of
business.
With respect to land advance given, the net recoverable
value is based on the management's estimates and internal
documentation, which include, among other things, the
likelihood when the land acquisition would be completed, the
expected date of plan approvals for commencement of
project, estimation of sale prices and construction costs and
Company's business plans in respect of such planned
developments.
In view of the Covid-19 pandemic, the Company has
reassessed its future business plans and key assumptions
as at March 31, 2025 while assessing the adequacy of
carrying value of inventories and land.
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Our audit procedures/testing included, among others:
• Read and evaluated the accounting policies and
disclosures made in the financial statements with respect to
inventories;
• Understood and reviewed the management's process and
methodology of using key assumptions for determination of
NRV of the inventories including considerations given to
impact of Covid-19;
• Tested the NRV of the inventories to its carrying value in
books on sample basis.
• Where the Company involved specialists to perform
valuations, we also performed the following procedures: o
Obtained and read the valuation report used by the
management for determining the NRV;
• Considered the independence, competence and objectivity
of the specialist involved in determination of valuation.
• Involved experts to review the assumptions used by the
management specialists. For land advance, our audit
procedures included the following:
• Obtained status update from the management and verified
the underlying documents for related developments.
• Compared the acquisition cost of the underlying land with
current market price in similar locations.
• Evaluated the management assessment w.r.t.
recoverability of those advances and changes if any, in the
business plans relating to such advances including
considerations given to the impact of Covid-19.
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Assessing impairment of Investments in subsidiary
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The Company has significant investments in its subsidiary.
As at March 31, 2025, the carrying values of Company's
investment in its subsidiary amounts to Rs. 343.34 lakhs.
Management reviews regularly whether there are any
indicators of impairment of the investments by reference to
the requirements under Ind AS 36 "Impairment of Assets”.
In view of the Covid-19 pandemic, the Company has
reassessed its future business plans and key assumptions
as at March 31, 2025 while assessing the adequacy of
carrying value of investments.
For investments where impairment indicators exist,
significant judgments are required to determine the key
assumptions used in the valuation model and methodology,
such as revenue growth, discount rates etc.
Considering, the impairment assessment involves
significant assumptions and judgement, the same has been
considered as key audit matter
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Our procedures in assessing the management's judgement
for the impairment assessment included, among others, the
following:
• Assessed the Company's valuation methodology applied in
determining the recoverable amount of the investments
including considerations given to impact of Covid-19;
• Obtained and read the valuation report used by the
management for determining the fair value ('recoverable
amount') of its investments;
• Considered the independence, competence and objectivity
of the management specialist involved in determination of
valuation;
• Tested the fair value of the investment as mentioned in the
valuation report to the carrying value in books;
• Made inquiries with management to understand key drivers
of the cash flow forecasts, discount rates, etc.
• Involved experts to review the assumptions used by the
management specialists. We reviewed the disclosures
made in the financial statements regarding such
investments.
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Related party transactions
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The Company has undertaken transactions with its related
parties in the ordinary course of business at arm's length.
These include making new or additional investments in its
subsidiaries; lending loans to related parties; sales and
purchases to and from related parties, etc. as disclosed in
the standalone Ind AS financial statements.
We identified the accuracy and completeness of the related
party transactions and its disclosure as set out in respective
notes to the financial statements as a key audit matter due to
the significance of transactions with related parties and
regulatory compliances thereon, during the year ended
March 31,2025.
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Our procedures / testing included the following:
• Obtained and read the Company's policies, processes and
procedures in respect of identifying related parties, obtaining
approval, recording and disclosure of related party
transactions;
• Read minutes of shareholder meetings, board meetings
and minutes of meetings of those charged with governance
in connection with Company's assessment of related party
transactions being in the ordinary course of business at
arm's length;
• Tested, related party transactions with the underlying
contracts, confirmation letters and other supporting
documents;
• Agreed the related party information disclosed in the
financial statements with the underlying supporting
documents, on a sample basis.
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Information other than the financial statements and auditors’ report thereon
The Company's board of directors is responsible for the preparation of the other information. The other information comprises the
information included in the Board's Report including Annexures to Board's Report, Business Responsibility Report but does not
include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Management’s responsibility for the financial statements
The Company's board of directors are responsible for the matters stated in section 134 (5) of the Act with respect to the
preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting
standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The board of directors are also responsible for overseeing the Company's financial reporting process.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(I) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company has adequate internal financial controls system in place
and the operating effectiveness of such controls
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with
governance, we determine those matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
As required by the Companies (Auditor's Report) Order, 2020 ("the Order”), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure "A”, a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books;
(c) The balance sheet, the statement of profit and loss, and the cash flow statement dealt with by this report are in
agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the accounting standards specified under section
133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on March 31,2025 taken on record by
the board of directors, none of the directors is disqualified as on March 31, 2025 from being appointed as a
director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate report in “Annexure B”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls
over financial reporting;
(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to
the explanations given to us;
a. The Company have pending litigations which would not have material impact on its financial position -
Refer Annexure A of CARO 2020.
b. The Company did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses; and
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company.
For MAAK & ASSOCIATES,
CHARTERED ACCOUNTANTS
FRN No.135024W
Sd/-
CA MARMIK G. SHAH
PARTNER
Place: Ahmedabad M. No 133926
Date: 30th May, 2025 UDIN : 25133926BMJGYT2379
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