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Arihant Institute Ltd.

BSE: 541401 Sector: Others
NSE: N.A. ISIN Code: INE997Z01016
BSE 00:00 | 13 Dec Arihant Institute Ltd
NSE 05:30 | 01 Jan Arihant Institute Ltd
OPEN 1.49
PREVIOUS CLOSE 1.56
VOLUME 24000
52-Week high 2.10
52-Week low 1.34
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.49
CLOSE 1.56
VOLUME 24000
52-Week high 2.10
52-Week low 1.34
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Arihant Institute Ltd. (ARIHANTINSTITUT) - Director Report

Company director report

To THE MEMBERS ARIHANT INSTITUTE LIMITED

Your Directors are pleased to present herewith the 14th ANNUAL REPORTtogether with the Audited Financial Statements and Auditors report thereon for the yearended 31st March 2021.

FINANCIAL RESULTS/ STATE OF COMPANY AFFAIRS:

The Financial Results of the Company for the year ended on 31st March 2021are as follows:-

(Amt. in Rs.)
Particulars Year 2020-21 Year 2019-20
Revenue from operation 307706/- 5667018/-
Other income 00/- 00/-
Gross Income 307706/- 5667018/-
Profit / (loss) Before Depreciation Interest/ Finance 6347/- 1740804/-
cost and Taxation
(Less) Interest / Finance cost 6478/- 20993/-
Profit / (loss) Before Depreciation and Taxation -131/- 1719811/-
Depreciation and Amortization 1274002/- 1329045/-
Profit / (Loss) before Taxation 1274133/- 390766/-
Extra-Ordinary Item 00/- 00/-
Provision for taxation - For Current Tax 00/- 78000/-
Provision for taxation - For Deferred Tax 00/- -40563/-
MAT credit Entitlement 00/- 00/-
Profit / (Loss) after Taxation -1153407/- 353329/-
Appropriations: -0.12 0.04
Proposed Dividend -0.12 0.04

COMPANY'S PERFORMANCE REVEIW:

The revenue from operations for Financial Year 2020-21 was Rs. 307706/- over previousyear s revenue from operations of Rs. 5667018/-.

The company has incurred the net loss of Rs. -1153407/- in the financial year 2020-21against the profit of Rs. 353329/- of previous year 2019-20.

The earning per shares is reduced to -0.12 in the year 2020-21 as compared to 2019-20which was 0.04.

The company is projecting better performance in upcoming years.

CONSOLIDATED FINANCIAL RESULTS:

The company does not have any subsidiary within the meaning of the Companies Act 2013.So consolidated financial results are not applicable.

DIVIDEND:

Due to loss of the Company your directors do not recommend any payment of dividend forthe year under review.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

Since there was no unpaid/ unclaimed dividend the provision of Section 125 of theCompanies Act 2013 do not apply.

TRANSFER TO RESERVES:

The board does not proposed any amount to carry to any specific reserves.

DEPOSITS:

The Company has not accepted any deposits from Shareholders and Public falling withinthe ambit of Section 73 of the Companies Act 2013 and rules made there under. There wereno deposits which were claimed and remained unpaid by the Company as on 31stMarch 2021.

LOANS FROM DIRECTOR/RELATIVE OF DIRECTOR:

The balances of monies accepted by the Company from Directors/ relatives of Directorsat the beginning of the year were Rs. 1049986/- and at the close of year was Rs.1049986/- so the company has not accepted any loans or advances from the Directors orthe relative of the directors of the Company.

LOANS GUARANTEES & INVESTMENTS U/S 186:

Particulars of loans given and of the investments made by the Company if any duringthe year under review are as mentioned in the Notes forming part of the FinancialStatements.

DIRECTORS' RESPONSIBILITY STATEMENT:

It is hereby stated that:

(a) In the preparation of annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures.

(b) The Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe loss of the Company for that period.

(c) The Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

(d) The Directors have prepared the annual accounts ongoing concern basis.

(e) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.

(f) The Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

LISTING OF SHARES:

On 5th May 2018 9405006 Equity Shares of Rs.10/- each has been listed onthe BSE SME( Small and Medium Exchange).

GROUP COMPANIES:

Following are the group companies of Arihant Institute Limited:

1. Aadi Corpoway Private Limited

2. Arihant Press Private Limited

INDEPENDENT DIRECTORS:

In terms of Section 149 of the Companies Act 2013 and rules made there under as ondate of this report the Company has two Non-Executive Independent Directors in line withthe Companies Act 2013.

A separate meeting of Independent Directors was held in the financial year 2020-21 toreview the performance of Non- Independent Directors and Board as whole and of thechairman and assess the quality quantity and timeliness of flow of information betweenCompany Management and Board. The terms and conditions of appointment of IndependentDirectors and Familiarization program for Independent Director are incorporated on thewebsite of the Company at www.arihantinstitute.com.

The Independent directors have submitted their disclosure to the Board that they fulfilall the requirements as to qualify for their appointment as an Independent Director underthe provisions of Section 149 read with Schedule IV of the Companies Act 2013. The Boardconfirms that the independent directors meet the criteria as laid down under the CompaniesAct 2013.

SHARE CAPITAL:

The Authorised share capital of the company is 95000000/- and the paid up sharecapital of the company is 94050060/- During the year under review there is no changein the capital structure of the company.

The company has not issued any equity shares with differential rights sweat equityshares employee stock option and did not purchase its own shares. Hence there is noinformation to be provided as required under various provisions of Companies (ShareCapital and Debenture) Rules 2014 and Section 62 of the Companies Act 2013.

MATERIAL CHANGES AFFECTING FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURREDBETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTSRELATE AND THE DATE OF REPORT:

There have been no material changes and commitments affecting the financial positionof the Company which occurred between the end of the financial year of the Company towhich the financial statements relate and the date of this report.

CHANGE IN THE NATURE OF BUSINESS IF ANY:

During the year under review there is no change in the nature of business of yourCompany.

DIRECTORS KMPs AND CHANGES THEREOF:

During the year under review on 23rd January 2020 has appointed Miss.Mansi yash Vora as a Company Secretary & Compliance officer of the Company and she hasresigned from the post of company Secretary & Compliance officer of the company on 10thAugust 2020.

In order to fill up the casual vacancy after the closure of the year but beforereporting date on 3rd September 2021 Mr. Pankaj sureshkumar kewalramani isappointed as a Company Secretary & Compliance Officer of the company.

However after the closure of the year but before reporting date Mr. Pankaj sureshkumarkewalramani has resigned from the post of the Company Secretary and Compliance officer ofthe company with effect from 1st November 2021 and in order to fill up thecasual vacancy the Board of Directors of the Company in their meeting held on 1stNovember 2021 has appointed Ms. Sanchita Ojha as the Company Secretary and ComplianceOfficer of the Company w.e.f. 1st November 2021.

RETIREMENT BY ROTATION

In accordance with the provisions of Section 152 of the Companies Act 2013 and AOAMr. Vinodbhai Chimanlal Shah (DIN: 08033798) retires by rotation at the forthcomingAnnual General Meeting and being eligible offers himself for reappointment.

The Board recommends his re-appointment for the consideration to the Members for theirapproval at the ensuing Annual General Meeting on the terms and conditions mentioned inthe Notice convening the AGM. A brief profile of Mr. Vinodbhai Chimanlal Shah (DIN:08033798) has also been provided therein.

DETAILS OF BOARD MEETINGS:

During the year under review the Board of Directors met 6 times and an intervening gapbetween any two meetings was within the period prescribed by the Companies Act 2013. Thedetails of dates of meeting and attendance of directors in such meetings is enclosedherewith as an Annexure: 1.

COMMITTEE OF THE BOARD AND THEIR MEETINGS:

As on 31st March 2021 the Board had Committees i.e. the Audit Committeethe Nomination & Remuneration Committee the Stakeholder s Relationship Committee andInternal Complaints Committee. Full details of the constitution of such committees andmeeting held of such committee during the financial year is annexed herewith as an Annexure:2.

ANNUAL RETURN:

In accordance with the Companies Act 2013 the Annual Return of the Company as on 31stMarch 2021 will be made available on the Company s website and can be accessed atwww.arihantinstitute.com after the ensuing Annual General Meeting of the Company.

ANNUAL EVALUATION OF BOARD'S PERFORMANCE:

Pursuant to the requirements of the Companies Act 2013 and in accordance with thepolicy laid down by the Nomination and Remuneration Committee (NRC) as approved by theBoard of Directors the Board has carried out an annual evaluation of its performance itsCommittees and all individual directors. In a separate meeting of Independent Directorsperformance of Non Independent Directors performance of the Board as a whole andperformance of the Chairman & Managing Director was evaluated.

CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

There were no related party transactions made by the Company during the year underreview as described under Section 188(1) of the Companies Act 2013.

STATUTORY AUDITORS:

At the Extra-Ordinary General Meeting of the members of the company held on 29thOctober 2021 M/s. Devadiya & Associates Chartered Accountants (Firm RegistrationNo.: 0123045W) is appointed as the Statutory Auditor of the Company for the Financial year2020-21 to fill up the casual vacancy caused due to resignation M/s. NGST &Associates Chartered Accountant FRN: 135159W who will hold office until the conclusionof 14th Annual General Meeting. M/s. Devadiya & Associates is eligible tobe reappointed as a Statutory Auditor of the company for the period of 5 years.

Necessary resolution is proposed by the board of Directors of the company for there-appointment of M/s. Devadiya & Associates in the notice calling 14thAnnual General Meeting of the members of the Company.

SECRETARIAL AUDIT:

As per Section 204 of the Companies Act 2013 every listed company and Unlisted PublicCompany having paid up share capital of Rupees Fifty Crore or more or Turnover of RupeesTwo Fifty Crore or more is required to annex a Secretarial Audit Report with its BoardReport given by A Practicing Company Secretary.

The secretarial audit report from the Practicing Company Secretary is attached herewithas Annexure: 3.

COST AUDIT:

The provisions of section 148 of the Act read with rule 3 of the Companies (CostRecords and Audit) Rules 2014 do not apply to the Company.

OBSERVATION BY STATUTORY AUDITOR:

The Auditors Report to the members for the year under review does not contain anyqualification except point 7 i.e statutory dues of CARO Report i.e

(a)According to information and explanations given to us and on the basis of ourexamination of the books of accounts and records the Company is not regular in depositingundisputed statutory dues including Provident Fund Employees State Insurance Income-TaxSales tax Service Tax GST Duty of Customs Duty of Excise Value added Tax Cess andany other statutory dues with the appropriate authorities.

(b)According to the information and explanations given to us undisputed amountspayable in respect of the above were in arrears as at March 31 2021 for a period of morethan six months from the date on when they become payable as under;

Sr. No. Particulars Amount outstanding
1 GST PAYABLE 3480618
2 TDS PAYABLE 3199777
3 P.F. PAYABLE 64164
4 P. T. PAYABLE 7922

(C)According to the information and explanation given to us there are no dues of salestax service tax GST Duty of customs duty of excise value added tax outstanding onaccount of any dispute.

Director Comment's towards Auditor Remark's

During the year under review company was facing financial issues due lot of outstandingdues pending form various government departments due to that reason company was not ableto clear it statutory dues now company position is sound and has cleared most of itsdues.

INTERNAL FINANCIAL CONTROL SYSTEM:

The Company has an Internal Financial Control System commensurate with the size scaleand complexity of its operations. The scope and authority of the Internal FinancialControl function is well defined.

REMUNERTION POLICY:

In accordance with the provisions of Section 178 of the Companies Act 2013 and Part Dof Schedule II of SEBI (LODR) Regulations 2015 the policy on Nomination and

Remuneration of Directors KMPs and Senior Management of your Company is uploaded onthe website at the following link: Link: http://arihantinstitute.com/policies/

RISK MANAGEMENT:

The Company has in place a robust risk management framework which identifies andevaluates business risks and opportunities. The Company recognizes that these risks needto be managed and mitigated to protect the interest of the shareholders and stakeholdersto achieve business objectives and enable sustainable growth.

The risk management framework is aimed at effectively mitigating the Company s variousbusiness and operational risks through strategic actions. Risk management is embedded inour critical business activities functions and processes. The risks are reviewed for thechange in the nature and extent of the major risks identified since the last assessment.It also provides control measures for risk and future action plans.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

During the year under review there are no significant material orders passed by theRegulators/ Courts which would impact the going concern status of the Company and itsfuture operation.

PROCEEDINGS UNDER INSOLVENCY & BANKRUPTCY CODE 2016.

There are no proceedings pending under the Insolvency and Bankruptcy Code 2016.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Your attention is drawn to the perception and business outlook of your management foryour company for current year and for the industry in which it operates including itsposition and perceived trends in near future. The Management Discussion and AnalysisReport as stipulated under Schedule V of the SEBI (Listing Obligations & DisclosureRequirements) Regulations 2015 is annexed herewith as an Annexure: 4 and formspart of this Director s Report.

PARTICULARS OF EMPLOYEES RELATED DISCLOSURES

Details as required under Section 197 read with Rule 5 of the Companies (Appointmentand Remuneration of Managerial Personnel) Rules 2014 and the statement showing the nameof the employees drawing remuneration in excess of the limits set out in Section 197(12)of the Companies Act 2013 read with Rule 5(2) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 is annexed as Annexure-5.

CORPORATE SOCIAL RESPONSIBILITY (CSR):

Section 135 of the Companies Act 2013 has imposed CSR mandate on companies havingminimum threshold limit of net worth turnover or net profit as prescribed. Since thecompany does not meet any one of these criterion it remains outside the purview ofSection 135 and consequently the reporting requirements there under do not at presentapply to us.

VIGIL MECHANISM

Your Company has formulated a vigil mechanism to deal with instances of unethicalbehaviour actual or suspected fraud or violation of Company s code of conduct or ethicspolicy. The policy on Vigil Mechanism is uploaded on the website of the Company atfollowing link: http://arihantinstitute.com/policies/.

During the year under review no instances of fraud were reported by the StatutoryAuditors of the Company.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013

The company has in place an Anti-harassment policy in line with the requirements of theSexual Harassment of women at workplace (Prevention Prohibition and Redressal) Act 2013.Any complaint/ grievances from women employees are reported to Chairman. All employees(Permanent contractual temporary trainees) are covered under the policy. There was nocomplaints received from any employee during the financial year 2020-21 and no complaintis outstanding as on 31st March 2021.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNING AND OUTGO:

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo as stipulated hereunder:-

Conservation of Energy:

1. The steps taken or impact on conservation of energy:-

The Company has taken measures and applied strict control system to monitor day to daypower consumption to endeavor to ensure the optimal use of energy with minimum extentpossible wastage as far as possible. The day to day consumption is monitored and variousways and means are adopted to reduce the power consumption in an effort to save energy.

2 . The steps taken by the company for utilizing alternate sources of energy.

Company has not taken any step for utilizing alternate sources of energy.

3. The capital investment on energy conservation equipments.

Company has not made any capital investment on energy conservation equipments.

Technology Absorption

Company has not imported any technology and hence there is nothing to be reported here.

Foreign Exchange Earning and Outgo:

The details of Foreign exchange Earnings and outgo during the year are as follows:

(Rs. In Lacs)
Particulars 2020-21 2019-20
Foreign Exchange Earnings (Rs.) NIL NIL
Foreign Exchange Outgo(Rs.) NIL NIL

CAUTIONARY STATEMENT:

Statements in the Board s Report and the Management Discussion & Analysisdescribing the Company s objectives expectations or forecasts may be forward lookingwithin the meaning of applicable Securities Laws and Regulations. Actual results maydiffer materially from those expressed in the statement.

ACKNOWLED GEMENTS:

The Directors wish to place on record their appreciation for the sincere servicesrendered by employees of the Company at all levels. Your Directors also wish to place onrecord their appreciation for the valuable co-operation and support received from theGovernment of India various State Governments the Banks/ Financial Institutions andother stakeholders. The Directors also commend the continuing commitment and dedication ofthe employees at all levels which has been critical for the Company s success. TheDirectors look forward to their continued support in future.

DATE: 02/11/2021

FOR ARIHANT INSTITUTE LIMITED

PLACE: AHMEDABAD
S/D S/D
SIGNATURE SIGNATURE
SANDEEP VINODKUMAR KAMDAR VINOD CHIMANLAL SHAH
WHOLE TIME DIRECTOR & CEO CHAIRMAN & NON EXECUTIVE DIRECTOR
DIN: 00043214 DIN: 08033798

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