Tirupati Sarjan Limited has provided detailed clarification to BSE regarding the delayed disclosure of income tax demand notices worth ₹19.89 crore. The company submitted its comprehensive response on April 7, 2026, addressing BSE's discrepancy remark about the material event not being disclosed within the mandatory 24-hour timeline under Regulation 30 of SEBI (LODR) Regulations, 2015.

Disclosure Delay Explanation

The company explained that the income tax demand notices received between March 26-30, 2026, were sent to the email address tirupatisarjanltd@gmail.com , which is operated by multiple employees in the Accounts Department. The notices inadvertently escaped the attention of the Accounts Manager, who was occupied with financial year-end closing activities during that period. The company emphasized that weekends and a public holiday (Mahavir Jayanti) occurred during the period, contributing to the delayed response.

Income Tax Demand Details

The original disclosure revealed four separate demand notices from the Assistant Commissioner of Income Tax, Gandhinagar Circle, under section 156 of the Income-Tax Act, 1961. The notices were issued by Vinayak Baburao Parate, Assistant Commissioner of Income Tax, Gandhinagar Circle.

Company's Position and Next Steps

Tirupati Sarjan Limited emphasized that the delay was without any malafide or wilful intention on the part of the company or its directors. Managing Director Jitendrakumar Ishvarlal Patel (DIN: 00262902) signed the clarification response, reiterating the company's commitment to regulatory compliance. Based on the merits of each matter, the company is in the process of preferring appeals before the Appellate Authority or exploring other legal options against the demand notices.

Regulatory Compliance Framework

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The company has provided detailed annexures containing complete information about each demand notice as required under the amended regulations. According to the notices, the company has 30 days from service to pay the demanded amounts or file appeals with CIT (A), Gandhinagar within thirty days of receipt.

Tirupati Sarjan Limited has informed investors about BSE Limited's rejection of its penalty waiver application, resulting in an outstanding fine of Rs. 6,84,400 including GST. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations on March 26, 2026.

Penalty Details and Timeline

The penalty saga began when BSE imposed a fine on Tirupati Sarjan for board composition violations. The company's board structure did not comply with Regulation 17(1) of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Violation Specifics

BSE identified that Tirupati Sarjan's board composition violated SEBI regulations during the specified period. The company initially received an email regarding the non-compliance for the quarter ended December 31, 2024, which led to the imposition of the Rs. 2,83,200 fine.

Following the initial penalty, the company filed a waiver application with BSE on May 8, 2025, seeking relief from the imposed fine and any future penalties related to the same issue.

Current Status and Company Response

BSE's rejection communication dated March 25, 2026, confirmed that the company must pay the outstanding SOP fine of Rs. 6,84,400 including GST. This amount represents an increase from the initially imposed penalty, indicating additional charges or accumulated fines.

The company has stated it is exploring further options to determine its future course of action regarding the penalty payment. The disclosure indicates that apart from the financial burden of the fine, there is no other quantifiable monetary impact on the company's financial, operational, or other activities.

Regulatory Compliance Framework

The penalty falls under Regulation 17(1) of SEBI Listing Regulations, which governs board composition requirements for listed companies. The company's disclosure follows the amended Regulation 30 requirements and SEBI circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Managing Director Jitendrakumar Ishvarlal Patel signed the disclosure document, confirming the company's commitment to transparency in regulatory communications with stakeholders.