Whalesbook
Tirupati Sarjan Limited has disclosed receiving income tax demand notices totaling approximately ₹18.15 crore, spanning four assessment years from 2016-17 to 2020-21. The company received these notices between March 26 and March 30, 2026. Tirupati Sarjan explained that the delay in disclosing these demands was due to administrative oversight, the busy period of financial year-end closing, and subsequent holidays. The company stated it is now preparing to appeal these assessments.
The total demand includes ₹6.56 crore for assessment year 2018-19, ₹5.86 crore for 2017-18, ₹4.70 crore for 2016-17, and ₹1.00 crore for 2020-21.
This significant tax liability presents a potential financial challenge. If Tirupati Sarjan's appeals are unsuccessful, it could lead to substantial cash outflows, impacting its profitability and liquidity. The delay in reporting the demands, despite the company's explanation, may also attract scrutiny from regulatory bodies regarding compliance timelines.
The Ahmedabad-based company, incorporated in 1995, is primarily engaged in real estate development and construction. For the fiscal year 2024, Tirupati Sarjan reported revenue of ₹195 crore and a standalone net profit of ₹5 crore. Its trailing twelve months P/E ratio was approximately 5.39, with a Debt-to-Equity ratio of 48.92%.
In the broader real estate sector, competitors like Omaxe Ltd, Parsvnath Developers Ltd, and Ansal Housing and Construction Ltd operate. Publicly available disclosures for these peers did not immediately reveal similar recent tax demands or disclosure delays.
Shareholders will likely monitor the company's progress with its appeals and any communications from tax authorities. Future disclosures related to this matter and the company's overall financial health will be important to track.