Accounting Policies of Tirupati Fincorp Ltd. Company

Mar 31, 2024

Note 2 Significant Accounting Policies

(a) Basis of Accounting and preparation of financial statements

The financial statements of Tirupati Fincorp Ltd have been prepared on a going concern and on accrual basis, under
the historical cost convention and in accordance the Indian Accounting Standards (IND AS) as notified by Ministry of
Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Rules, 2016 and other relevant
provisions of the Act.

Functional and presentation currency- These financial statements are presented in Indian Rupees which is also the
Company''s functional currency. All amounts have been rounded-off to the nearest rupee, unless otherwise indicated.

(b) Use of Estimates

The preparation of the financial statements, in conformity with the Ind AS, requires the management to make
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets
and liabilities and disclosure of contingent liabilities as at the date of financial statements and the results of operation
during the reported period. Although these estimates are based upon management''s best knowledge of current
events and actions, actual results could differ from these estimates which are recognized in the period in which they
are determined.

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. 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 financial statements in the period in which changes are made and, if material, their effects are
disclosed in the notes to the financial statements.

Provision and contingent liability

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent
losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss
Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial
statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain
contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

Allowance for impairment of financial asset

The Company applies expected credit loss model (ECL) for measurement and recognition of impairment loss.
The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not
constitute a financing transaction. At each reporting date, the Company assesses whether the loans have been
impaired. The Company is exposed to credit risk when the customer defaults on his contractual obligations. For
the computation of ECL, the loan receivables are classified into three stages based on the default and the aging
outstanding. The Company recognises life time expected credit loss for trade receivables and has adopted simplified
method of computation as per Ind AS 109."

Property, plant and equipment and Intangible Assets

Management reviews the estimated useful lives and residual values of the assets annually in order to determine
the amount of depreciation to be recorded during any reporting period. The useful lives and residual values as per
schedule II of the Companies Act, 2013 or are based on the Company''s historical experience with similar assets and
taking into account anticipated technological changes, whichever is more appropriate

(c) Revenue Recognition
Revenue from Operations

The Company follows accrual basis of accounting for its income and expenditure except income on assets classified
as non-performing assets, which in accordance with the guidelines issued by the Reserve Bank of India for Non¬
Banking Financial Companies, is recognised on receipt basis. Interest income on loan transactions is accounted for
over the period of the contract by applying the interest rate implicit in such contracts.

Other Income

Other income is accounted on accrual basis, except in case of significant uncertainties such as File Cancellation
Charges, Collection Charges, Pre-Closure Charges etc."

(d) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity
instrument of another entity.

1. Financial Assets

Initial recognition, classification and subsequent measurement of Financial Assets

Financial assets are classified into one of the three categories for measurement and income
recognition:

- Amortised Cost

- Fair value through other comprehensive income (FVOCI)

- Fair value through profit and loss (FVTPL)

Financial asset is measured at amortised cost, if both the following conditions are met:

a) The financial asset is held within a business model whose objective is to hold the financial assets in order to
collect the contractual cash flows; and

b) The contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding (SPPI).

Financial assets are measured at fair value through OCI if these financial assets are held within a business model
with an objective to hold these assets in order to collect contractual cash flows or to sell these financial assets and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding"

Business Model Test & Solely payment of Principal and Interest (SPPI) test

In order to arrive at the appropriate Business Model, the following factors are considered by the Company.

- How the performance of the business model (including the financial assets in that business model) are
evaluated and reported to key management personnel within the Company.

- The risks that affect the performance of the business model (and the financial assets in it) and how those
risks are managed.

SPPI Test

Contractual Cash Flow Assessment

To determine whether a financial asset is measured at either amortised cost or FVOCI, the Company has
considered whether the cash-flows from the financial asset are solely for the payments of principal and interest
("SPPI”).

The Company has classified its financial assets into the following category:

- Debt instruments at amortised cost

- Equity instruments measured at fair value through other comprehensive income (FVOCI)"

De-recognition of Financial Assets

A financial asset is derecognised only when

- The Company has transferred The rights to receive cash flows from The financial asset or

- Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.

Where the company has transferred an asset, the company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the
company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset
is not derecognised.

Where the company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership
of the financial asset, the financial asset is derecognised if the company has not retained control of the financial asset.
Where the company retains the control of the financial asset, the asset is continued to be recognised to the extent of
continuing involvement in the financial asset.

Impairment of financial asset:

I n accordance with Ind AS 109, the Company applies the Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on financial assets and credit risk exposures.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables.
Simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment
loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing
impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the group in accordance with the contract and
all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. Lifetime ECL
are the expected credit losses resulting from all possible default events over the expected life of a financial instrument.
The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months
after the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the
Statement of Profit and Loss.

Derecognition of financial assets:

A financial asset is primarily derecognised when the rights to receive cash flows from the asset have expired or the
Company has transferred its rights to receive cash flows from the asset.

2. Financial Liabilities

Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to another
entity or to exchange financial assets or financial liabilities with another entity under conditions that are potentially
unfavourable to the Company.

The Company''s financial liabilities include loans & borrowings, trade and other payables.

Classification, initial recognition and measurement

Financial liabilities are recognised initially at fair value minus transaction costs that are directly attributable to the issue
of financial liabilities. Financial liabilities are classified as subsequently measured at amortized cost. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the effective interest rate (EIR). Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the Statement of Profit and Loss over the period of the borrowings using the effective rate
of interest.

Subsequent measurement

After initial recognition, financial liabilities are subsequently measured at amortised cost using the EIR method. In each
financial year, the unwinding of discount pertaining to financial liabilities is recorded as finance cost in the statement
of profit and loss.

De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The
difference between the carrying amount of a financial liability that has been extinguished or transferred to another
party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
profit or loss as other income or finance cost.

(e) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost less accumulated depreciation and impairement loss, if any thereon.
The cost of Property, Plant & Equipment comprises purchase price and any attributable cost of bringing the asset to its
working condition for its intended use.

Gain or losses arising from de-recognition of property, plant and equipment are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and is recognized in the Statement of
Profit and Loss when the asset is derecognized as per IND AS 16."

(f) Depreciation / Amortization

Tangible assets are depreciated on straight line basis as per useful life prescribed in Schedule II of the Companies
Act, 2013.

Intangible assets are amortized on a straight line basis over a period having regard to their useful economic life and
estimated residual value in accordance with Indian Accounting Standard (Ind AS) 38 "Intangible Assets".

(g) Investments :

Non-Current Investments are carried at cost. Provision for diminition in the value of Non-Current Investments is made
only if such a decline is other than temporary in the opinion of the management.

Current Investments are carried at cost . The comparison of cost and fair value is done separately in respect of each
category of investments.

On disposal of investments the difference between its carrying amounts and net disposal proceeds is charged or
credited to the Statement of Profit and Loss. Profit or loss on sale of investments is determined on a Weighted Average
Cost basis.

(h) Borrowing costs

As per IND AS 23 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 capitalised as part of the
cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consists
of interest and other costs that an entity incurs in connection with the borrowings of funds and includes exchange
differences to the extent regarded as an adjustment to the borrowing costs. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended use.

(i) Employees Retirement Benefits :

As none of the employees has completed the minimum length of services prescribed under the Payment of Gratuity
Act, no provision for accrued gratuity is considered necessary.

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Mar 31, 2015

1. Basis of preparation of Accounts

The financial statements are prepared on accrual basis, following the historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP) which are consistently adopted by the Company, and in compliance with the Accounting Standard issued by the Institute of Chartered Accountants of India and provisions of the Companies Act 1956, to the extent applicable.

All the assets and liabilities have been classified as current or non current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of the products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company had ascertained its operating cycle as 12 months for the purpose of current or non current classifications of assets and liabilities.

2. Use of Estimates

The presentation of financial statements in conformity with the Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Any differences between the actual results and the estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition including expenses incidental to their acquisition less accumulated depreciation & impairment.

4. Depreciation

There is no fixed assets in the books of the company and hence no requirement for providing any depreciation in the books of accounts.

5. 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.

Income from interest is recognized and stated at gross of tax deducted at source.

6. Foreign Exchange Transaction

Transaction in foreign currency is recorded at the original rate of exchange in force at the time of transaction were effected. Current assets & liabilities balances in foreign currencies at the balance sheet date are restated at the yearend exchange rates and the resultant net gain or loss adjusted in the revenue account.

7. Employee Benefits

a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

b) Post employment and other long term employee benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and loss in respect of post employment and other long term benefits are charged to the profit and loss account.

8. Retirement Benefits

Company has policy of making provision for retirement benefits as and when the liability arises.

9. Impairment Of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

10. Derivate Instruments

Derivate financial instruments are recorded at fair value on the date of the derivative transaction and are re measured at their fair value at subsequent balance sheet date. Changes in the fair value of derivatives are recorded in the Profit & loss account.

11. Provision for Current and Deferred Tax.

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from "time differences" between taxable and accounting income, if material, is accounted using the tax rates and laws that are enacted or substantively enacted as on balance sheet date.

12. Related Party Disclosures

There are no related party transactions involved during this financial year.

13. Foreign Currency Transactions

There is no income or expenditure in foreign currency during the year.

14. EARNING PER SHARE

Particulars As At 31 March 2015 (Amount in 000)

Net Profit / (Loss) After Tax 4,38,580 available for Equity Share Holders

Weighted Average Number of Equity 49,44,225 Shares of Rs. 10/- each outstanding during the year

Basic / Diluted Earning Per Share 0.09 Rs.

Particulars As At 31 March 2014 (Amount in 000)

Net Profit / (Loss) After Tax 6,77,400 available for Equity Share Holders

Weighted Average Number of Equity 49,44,225 Shares of Rs. 10/- each outstanding during the year

Basic / Diluted Earning Per Share 0.14 Rs.

15. Others

a. Company has policy of making provision for retirement benefits as and when the liability arises.

b. Figures are rounded off to nearest rupees.

c. In the opinion of the Management current assets, advances are approximately of the value stated if realized in the ordinary course of business except otherwise stated.

d. Previous year figures have been regrouped or rearranged wherever necessary.

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Mar 31, 2013

1. Change in the name of the Company During the year company has changed its name from Surya Globefin Limited to TIRUPATl FlNCORP LIMITED.

2. Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with accounting principles generally accepted in India. The Financial Statements comply in all material aspects with the Accounting Standards notified under the Companies (Accounting Standards) Amendments Rules 2011 and the relevant provisions of the Companies Act, 1956.

All the assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of the products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company had ascertained its operating cycle as 12 months for the purpose of Current or non Current classifications of assets and liabilities.

3. Share Capital

* During the year, Company has invited share application from existing Shareholder and equity share Capital of Rs 20000000.00 ( 2000000 equity share @Rs 10/- each) has been allotted at Rs 21/- per share (including 11/-per share as securities premium).

* None of Shareholder holding more than 5% of share during the year 4. Transfer to Reserves

Despite of no dividend declaration, Company has transferred 20% of Profit after tax to Special Reserve Fund from the current protits as per RBI Guidelines

5. Long Term Borrowings

* Borrowing loans and advances from other than relatives parties is unsecured.

6. Short Term Borrowings

Borrowings by way of Bank Overdraft from Oriental Bank Of Commerce is secured by way of pledge FDR with Bank of Rs 40 lakhs.

7. Income Tax & MAT Tax

Taxes on income are accounted for in accordance with Accounting Standard (AS) 22 Accounting for taxes on income. Provision for Income Tax comprises current tax, previous tax and MAT tax on Balance Sheet date

Current Tax is determined as the amount of tax payable in respect of taxable income for the period

8. Noncurrent investments

Noncurrent Investments comprises of Traded Investments and Non Traded Investments under the head Non Current Investments.

Traded Investments include FDR of Rs 40 Lakhs with Oriental Bank of Commerce (pledged against Bank Overdraft Limit including accrued Interest)

Non trade investments are valued at cost unless staled otherwise Investments made in unquoted equity instruments of Tea Exchange Bharath Ltd and Golden era Plantation Pvt Ltd during the year as staled in Schedule-8.

9. Long Term Loan & Advances

During the year company has made loans and advance and earned interest income on them is unsecured considered good.

10. Short Term Loan & Advances

Loan & Advances for less than one year made by the company to the parties amounting to Rs 14664880/- is unsecured considered good

11. Revenue Recognition

Revenue is recognised when significant risks & rewards of ownership of goods has been passed on to the buyer.

* Sale of goods (Fabrics) is exclusive of sales tax.

* Income from interest is recognized and stated at gross of tax deducted at source.

12. Expenses

Expenses are net of taxes recoverable, where applicable

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Mar 31, 2012

1. General

Accounting Policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles.

2. Revenue Recognition

Expenses and Income considered payable and receivable respectively are accounting for on accrual basis except discounts claims relates and retirement benefits in respect of leave encashment which cannot be determined with certainty during the year and Interest.

3 Fixed Assets

Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

4. Depreciation:-

Depreciation on Fixed Assets has been provided on straight line method, on the cost of Fixed Assets as per the rates, provided in Schedule XIV of the Companies Act, 1956 except non charging of 100% depreciation on assets costing below Rs. 5000/-. Further, in case of addition, depredation has been provided on pro-rata basis commencing from the date on which the asset is commissioned.

5. Investments :-

Investments are staled at cost.

6. Taxes on Income:-

Prevision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that these would be realised in future.