l) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognised when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to fulfill the obligation and in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.
m) Taxation:
Current tax is determined on the basis of the amount of tax payable on taxable income for the year.
Deferred tax is in accordance with the Accounting Standard 22 - “Accounting for Taxes on Income”, issued by the Institute of Chartered Accountants of India. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
n) Cash And Cash Equivalents:
Cash and cash equivalents comprises of Cash in hand, Balances with banks and fixed deposits less than twelve months with banks.
o) Cash flow statement:
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
p) Borrowing Costs:
General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of such asset till such time the asset is ready for its intended use and borrowing costs are being incurred. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.
Borrowing cost includes interest expense, amortization of discounts, hedge related cost incurred in connection with foreign currency borrowings, ancillary costs incurred in connection with borrowing of funds and exchange difference arising from foreign currency borrowings to the extent they are regarded as an adjustment to the Interest cost.
q) Earnings per share:
Basic Earnings Per Share (“EPS”) is computed by dividing the net profit / (loss) after tax for the year attributable to the equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year are adjusted for bonus shares. For the purpose of calculating diluted earnings per share, net profit / (loss) after tax for the year attributable to the equity shareholders is divided by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares and is adjusted for the bonus shares held by the Company.
r) Exceptional Items:
Exceptional items are those items that in management's judgment are material items which derive from events or transactions that fall outside the ordinary activities of the company and which individually or, if of a similar type, in aggregate, need to be disclosed separately by virtue of their size or incidence.
* Note 1: 44,10,000 shares were issued during the year as Bonus shares on 23rd August, 2022.
* Note 2: 16,35,200 shares of face value Rs. 10 per share were alloted under Initial Public Offer at Premium of Rs. 80 per share
Rights, preferences and restrictions attached to Equity Shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
27) In the opinion of the Board of Directors the current assets, loan and advances are approximately of the value stated, if realised in the ordinary course of business. The provisions for all known liabilities is adequate and not in excess of the amount reasonably necessary.
28) Related party disclosure as required by Accounting Standard-18 is given below:
1. Relationships:
a. Entities where control exist: Team Arihant Carmel Academy LLP
Arihant Academy Ventures Private Limited
b. Directors: Mr. Anil Suresh Kapasi
Mr. Umesh Anand Pangam
Ms. Kirti Pangam Mr. Harsh Kapasi
c. Key Managerial Personnel: Mr. Shirish Pandurang Kumbhar
Ms. Deeksha Tiwari
d. Relatives of Director: Ms. Hiral Kapasi
Mr. Anand Pangam Ms. Rishika Pangam Ms. Sejal Shah
33)Initial Public Offer:
The company has issued and allotted 16,35,200 equity shares of Rs.10 each at premium of Rs.80 per Share through Initial Public Offer, aggregating to Rs.605.52 Lakhs. The Net issue expenses are Rs.112.91 Lakhs. The details of utilization of the net IPO proceeds is mentioned below:
34) The Company does not have any earnings in foreign currency.
35) The company operates only in one business segment which is coaching services. Further, the company operates and controls its business activities within India. Hence disclosure of segment wise information is not applicable under Accounting Standard-17 “Segment Reporting” (AS-17).
36) Exceptional item comprises of depreciation which has arisen due change in useful life and depreciation and amortization rate of the Property, Plant and Equipment and Intangible asset. The company does not consider these to be in its ordinary course of business of retail and therefore has considered it to be exceptional in nature.
37) During the year ended 31st March, 2023, the company has reassesed the useful lives of the property plant and equipment and intangible asset in line with useful lives mentioned in Schedule II to the Companies Act, 2013. The company has also changed the depreciation and amortization rate as per Schedule II of all the asset due to which profit of the current year has reduced by Rs.78.83 Lakhs.
38) During the year, the company has not executed any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
39) There are no transactions which were not recorded in books of accounts and have been surrendered or disclosed as income during the year in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
40) Previous year's figures have been regrouped, rearranged or recast to make them comparable wherever necessary.
As per our report of even date For and on Behalf of Board of directors
For G.P. KAPADIA & CO. Um e sh Ana nd Pangam Anil Suresh Kapasi
Chartered Accountants Whole Time Director Managing Director
(Registration No. 104768W) (DIN: 03524171) (DIN: 03524165)
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