Notes to Accounts of Tirupati Fincorp Ltd.

Mar 31, 2024

(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.

Company as lessee:

All leases are accounted for by recongnising a right of use asset and a lease liability except for:

- Leases of Low value assets and

- Leases with a duration of 12 months or less.

Note 26 :

Corporate Social Responsibility (CSR) Expenditure : NIL

Note 27 :

Segment Reporting

The company is engaged in single segment of Fund based activities and there are no separate reportable segments as
defined in IND AS 108

NOTE 28

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under
Ind AS. The Company has applied the following exemptions:

Since there is no change in the functional currency, the company has elected to continue with the carrying value measured
under the previous GAAP and use that carrying values as the deemed cost for property, plant and equipment on the
transition date. A previous GAAP revaluation for an item of plant, property and equipment may be used as deemed cost,
provided that at the date of revaluation, the revaluation was broadly comparable to fair value, or cost or depreciated cost
in accordance with Ind AS.

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with
Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company
has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place
as at the date of transition.

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its propety, plant and equipment
as recognised in the financial statements as at the date of transition to Iind AS, measured as per previous GAAP and use
that as its deemed cost as at the date of transition. Accordingly, the Group has elected to measure all of property, plant and
equipment at the previuos GAAP carrying value.

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI at the date of transition to Ind AS.The
Group has elected to apply this exemption for its investment in equity instruments.

NOTE 30 :

Some of the balances of loans, receivables, payables and borrowings are subject to confirmation and reconciliation of any.

NOTE 31 :

Previous period figures have been regrouped/reclassified as considered necessary to facilitate comparison.

Note 32 :

Figures have been rounded off to nearest lakhs

Note 36: Employees stock option grants

(a) Description of share based payment

In the Board Meeting held on September 6th,2021, the company has decided to issue 4,90,000 Stock Options to the Director,
KMP and Employees of the company, which was approval by the shareholders at the Annual General Meeting held on
September 29,2021. Thereafter, the Board of Director have Board considered and approved to grant 4,90,000 equity shares
at Exercise price of Rs.20/- per share to eligible employees under "Tirupati Employees Stock Options Plan 2021 (ESOP)"

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.

Vesting period of the option is for 4 year from 4th September 2022 to 4th September 2025 and the exercised period is for 4
year from 4th September 2025 to 4th September 2029.

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.

So, we are going by the Management response that

Present Book Value is approximately Rs.10 per share as on 30.06.2021. Since the company is following IndAS, all the assets
and liabilities are valued at fair value with adequate provisions for Expected Credit Loss". Hence the fair value is taken as Rs.
10/- per share.

Exercise price

Exercise price will be Rs.20, to be converted into equity shares after exercise of the stock options

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. 6.278% is the Rf applicable for 8-year government bonds

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 and taken as 46.52%"

Note 37: 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 Financial 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 against
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 On behalf of the Board of Directors

For JCR & Co. LLP Tirupati Fincorp Limited

(Chartered Accountants) CIN No: L67120RJ1982PLC002438

Firm Registration No. 105270W/WI00846

CA Mitesh Chheda Bansri Dedhia Sheetal Shah

(Partner) Director Director

Membership No. 160688 DIN: 08627610 DIN: 08364948

Place: Mumbai Ameya Bodas

Date : 30.05.2023 Company Secretary

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Mar 31, 2015

1. Right, Preferences and Restriction attached to shares

Equity shares

The company has only one class of Equity shares having par value Rs. 10.00 each. Each shareholder have right to attend and vote at all meeting of the company. Shareholders have right to participate in the dividends(if any) declared on that class of share. In a winding up of the company the shareholders have right to repayment of capital, paid up on such share and right to participate in the division of any surplus assets or profits of the company.

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Mar 31, 2013

1. There is no contingent liability as on 31st March, 2013

2. Amount due from Directors as on 31st March 2013 is Rs. Nil and maximum balance outstanding during the year Rs NIL. Repayment made for loan & Advances taken from outgoing director (Chanchal Dalmia) during the year

3. There are no micro Small and Medium enterprises to whom the company owes dues which are outstanding for more than 45 days at the balance sheet date. The information given in ''''current Liabilities" regarding micro small and medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the company

4. Figures of the previous year have been regrouped and rearranged wherever found necessary to make them comparable.

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Mar 31, 2012

1. Right, Preferences and Restriction attached to shares

Equity shares

The company has only one class of Equitiy Having a par value Rs.10.00 per share, bach shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in ensiling Annual General Meeting, except in case of interim dividend. In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2. The SSI status of the creditors is not known to the company, hence the information is not given.

3. Balances of Sundry Creditors, Sundry Debtors, Loans & Advances and Unsecured Loans have been taken at their book value subject to confirmation from the clients.

4. During the year ended 31st March 2012, the revised schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, is has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

5. Provision has been made for income tax for Rs 2,70,255 for income tax demand for year 2010-11

6. Loans and Advances are considered good in respect of which company does not hold any security other than the personal guarantee of persons.