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 nonoccurrence of one ior 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. Contingent Liabilities and Commitments:
As explained to us and as per information and documents produced before us, the company has not paid the Annual Listing Fees as well as fines of Rs. 1466740/- towards SOP Fines. The company has not accepted the same and hence not booked in the books of account. However, the same is treated as Contingent Liability.
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 2022-2023.
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. 18.28 Lakh as against Rs. 1.46 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. Year 2022-2023 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. 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.
54. Financial Risk management objectives: The financial risks mainly include market risk (interest rate risk), credit risk and liquidity risk.
Signature of Note “1 ” to “54” 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 board of directors
CHARTERED ACCOUNTANTS OF ARIHANT INSTITUTE LIMITED
Sd sd
CA Sanjay Devadiya Sandip V. Kamdar
PARTNER Whole Time Director
Chairman
M No. 112495 & CEO& Non-Executive Director
F R No. 123045W DIN:00043214 :
UDIN: 2311249SBGYWCQ4628
PLACE: AHMEDABAD PLACE: AHMEDABAD
DATE: 30/05/2023 DATE: 30/05/2023
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