q) Provision, Contingent Liabilities and Contingent Assets
Provision is recognized for when
i) The company has at present, legal or contractual obligation as a result of
Past events,
ii) It is probable that an outflow of resources embodying economic outgo or loss
will be occurred, and;
iii) The amount involved can be measured reliably.
Contingent liabilities being a possible obligation as a result of Past events, the
existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more future events not wholly in control of the
company are not recognized in the accounts. The nature of such liabilities
and an estimate of its financial effect are disclosed in notes to the Financial
Statements.
Contingent assets are neither recognized nor disclosed in the financial
statements.
s) Accounting of claims
i) Claims received are accounted at the time of lodgment depending on the
certainty of receipt and claims payable are accounted at the time of
acceptance.
ii) Claims raised by Government authorities regarding taxes and duties, which
are disputed by the company, are accounted based on legality of each
claim. Adjustments, if any, are made in the year in which disputes are finally
settled.
t) Corporate Social Responsibility:
In case of CSR activities undertaken by the Company, if any expenditure of
revenue nature is incurred or an irrevocable contribution is made to any
agency to be spent by the latter on any of the activities mentioned in
Schedule VII to the Companies Act, 2013, the same is charged as an expense
to its Statement of Profit and Loss.
25. Wherever, evidences / supporting for expenditure incurred by the Company
are not available, we have relied upon the Vouchers / Statements duly
certified by the Directors.
26. It is not possible for us to verify whether the payment and receipt in excess of
Rs. 200000/- have been made otherwise then by crossed cheque or bank
draft as the necessary evidence is not in possession of the assessee. Payment
in excess of aforesaid if any, make to Government Authority or bank is not
reported.
27. It is not possible for us to verify whether the expenses paid in excess of Rs
10000/- have been made otherwise then by crossed cheque or bank draft as
the necessary evidence is not in possession of the assessee. Payment in
excess of aforesaid if any, made to Government Authority or bank is not
reported.
28. It is not possible for us to verify whether the amount paid for assets in excess of
Rs 10000/- have been made otherwise then by crossed cheque or bank draft
as the necessary evidence is not in possession of the assessee. Payment in
excess of aforesaid if any, made to Government Authority or bank is not
reported.
29. In the opinion of the management, current assets, loans & advances are
approximately of the values stated, if realized in the ordinary course of
business. Balances of balance sheets like debtors, creditors, loans, advances
etc. including squired up accounts are subject to confirmation and hence
subject to adjustment, if any arising out of reconciliation. Inventories are
taken, as valued and certified by the assessee or management.
30. The Company has not received information from the suppliers regarding their
status under the Micro, Small & Medium Enterprises Development Act, 2006.
Hence, disclosure, if any, relating to amount unpaid as at the balance sheet
date together with interest paid or payable as per the requirement under the
said Act have not been made, compiled & disclosed.
31. Previous year figures are regrouped - rearranged wherever it required making
them comparable with the current year figures.
32. Dues of small enterprises and micro enterprises:
As explained ta us and as per information and documents produced before
us, the company do not having information regarding status of Micro, Small
and Medium status of its creditors and hence we are not able to comment on
the dues to MSME enterprises and the periodicity and delay payments and to
that the company had violation of the MSME disclosure requirement.
33. The Company has elected to exercise the opinion permitted under Section
115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws
(Amendment) Ordinance, 2019 which gives a onetime irreversible option to
domestic companies for payment of corporate tax at reduced rates. Based
on that provision for Income Tax is recorded.
34. The company has neither declared any Dividend nor paid any Dividend
during the FY 2023-2024.
36. The Company does not have any relationship with struck off companies as on
the balance sheet date, and hence disclosure is not required for the
relationship with struck off companies.
37. The Company has not been declared willful defaulter by any bank or
financial institution or other lender or government or any government
authority.
38. The Company has complied with the requirement with respect to number of
layers as prescribed under section 2(87) of the Companies Act, 2013 read with
the Companies (Restriction on number of layers) Rules, 2017.
39. Utilization of borrowed funds and share premium
I The Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding that the Intermediary shall:
(a) 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
(b) Provide any guarantee, security or the like to or on behalf of the
ultimate beneficiaries
II The Company has not received any fund from any person(s) or entity(ies),
including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the Company shall:
(a) 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
(b) provide any guarantee, security or the like on behalf of the ultimate
beneficiaries
40. There is no income surrendered or disclosed as income during the year in tax
assessments under the Income Tax Act, 1961 (such as search or survey), that
has not been recorded in the books of account.
41. The Company has not traded or invested in crypto currency or virtual
currency during the year.
42. The Company does not have any charges or satisfaction of charges which is
yet to be registered with Registrar of Companies beyond the statutory period.
43. The Company does not have any benami property held in its name. No
proceedings have been initiated on or are pending against the Company for
holding benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and Rules made thereunder.
44. The Company has not prepared any scheme of Arrangements in terms of
section 230 to 237 of the Companies Act, 2013.
47. DTA on carried forwarded loss has been not created in books of account as
we get explanation from the management regarding virtual uncertainty
regarding future taxable profit, so on prudence ground, it ignore creation of
DTA while DTA-DTL already created on depreciation provision. In view of the
management, there was no certainty to set off of the loss or depreciation
arising due to timing difference and hence no provision for Deferred Tax
Assets has been provided for the year under audit
49. The company is in process of revamping its business and run business
smoothly. However, there is slight increase in turnover i.e. in current financial
year the operational income is Rs. 43.34 Lakh as against Rs. 18.28 Lakh in the
immediate preceding financial year. However, considering the
managements’ opinion that situation revive in normal and business cycle
recovered gradually, we have considered the business as going concern.
50. Considering the accumulated brought forwarded losses and non-accepting
various government dues during the year 2023-2024 is operationally looks like
non going concern, but it is exceptional situation and hence management
has assessed business as going concern.
51. Preliminary Expenses not written off during the year under Audit.
52. The company has given Loans & Advances to certain parties since long,
advances for purchase of Fixed Assets to various parties since long and
outstanding Debtors and there was no transaction and the same accounts
are stagnant. However, in view of the management, the same are
recoverable / payable and hence not written off.
53. As informed to us and as per information and explanation given to us, the
company is selling “Books” on which GST has not been charged as well as the
company’s GST Registration Number is cancelled and had neither filed GST
Returns regular basis nor Paid GST on time and to that extent the company is
not in default under GST Rules and Regulation.
54. The Company is primarily engaged in “Educational & Coaching Services”. The
requirement of AS-17 - “Segment Reporting”, is not applicable to the
Company as it is engaged in single business segment.
55. Long term loans and advances has been processed for Confirmation. We
received random confirmations but management still under process to
compile / received 100% confirmation from all the parties. As it is confirmed
by the Management, we have taken as correct subject to confirmation.
56. Financial Risk management objectives: The financial risks mainly include
market risk (interest rate risk), credit risk and liquidity risk.
Signature of Note “ 1” to “56” forming part of Balance Sheet and Profit & Loss A/c.
AS PER OUR REPORT OF EVEN DATE ATTACHED HEREWITH.
FOR DEVADIYA & ASSOCIATES For and on behalf of
Chartered Accountants ARIHANT INSTITUTE LIMITED
FRNo: 123045W
SD SD SD SD
Sandip Vinodkumar
CA Sanjay Devadiya Kamdar Anjali Sandi p Kamdar Abhishek Lohia
Whole Time Director & Company
Partner CEO Director and CFO Secretary
Mem. No. : 112495 DIN NO:00043214 DIN NO: 00040963
UDIN: 24112495BKGQMU9777
Place : Ahmedabad Place: Ahmedabad
Date : 05.06.2024 Date : 05.06.2024
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