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.

Notes:

1) The figures in brackets represent outflows.

2) Previous periods' figures have been regrouped / reclassified, whereever necessary, to confirm to current
year presentation.

3) The Cash Flow Statement has been prepared under the indirect method as set out in Accounting
Standard-3 on Cash Flow Statements issued by The Institute of Chartered Accountants of India.

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 to 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 2024¬
2025.

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. The turnover
in current financial year the operational income is Rs. 9.48 Lakh as against Rs. 43.33 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 2024-2025 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 board of directors

CHARTERED ACCOUNTANTS OF ARIHANT INSTITUTE LIMITED

SD/-

SD/- SD/-

CA Sanjay Devadiya Sandip V. Kamdar Anjali Sandip Kamdar

PARTNER Whole Time Director Director

M No. 112495 & CEO & CFO

F R No. 123045W DIN:00043214 DIN: 00040963

UDIN: 25112495BMKTTZ9125

PLACE:AHMEDABAD PLACE: AHMEDABAD

DATE: 21/09/2025 DATE: 21/09/2025