16. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognised if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are neither recognized nor disclosed in financial statements.
17. Impairment of Non-Financial Assets:
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised in the statement of profit or loss for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash inflows which are largely dependent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
18. Investment in Subsidiaries, Joint-ventures and Associate:
Investment in equity shares of subsidiaries, joint-venture and associate are recorded at cost and reviewed for impairment at each reporting date.
19. Earnings Per Share:
Basic earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
Rate of Interest .Details of Security and Term of Repayment of Term Loans Aditya birla finance limited (Non-banking financial institution-NBFC)
Carries interest as on the reporting date at Nil. (Previous Year 14.30% p.a.). The Term loan is secured by Equitable Mortgage of Immovable property of Associate Company and personally guaranteed by the Directors. The loan is repayable in 155 monthly installments commencing from January, 2020 and ending on January, 2033. Loan is fully repaid during the year and no Due Certificate received on 11.12.2023.
ICICI Bank Ltd:
Carries interest as on the reporting date at Nil (Previous Year 8.50% p.a.). The Term loan is secured by Equitable Mortgage of Immovable property of Directors and personally guaranteed by the Directors. The loan is repayable in 120 monthly installments commencing from December, 2021 and ending on November, 2031.
Rate of Interest ,Details of Term of Repayment of ECLGS (Emergency Credit Line Guarantee Scheme) Loans Aditya birla finance limited (Non-banking financial institution-NBFC)
Carries interest as on the reporting date at Nil (Previous Year 14 % p.a.).The ECLGS loan is secured by Equitable Mortgage of Immovable properties of Associate Company. The loan is repayable in 48 monthly installments (including 12 months principal moratorium period) commencing from October, 2020 and ending on September, 2024. Loan is fully repaid during the year and no Due Certificate received on 11.12.2023.
Kotak Bank
Carries interest as on the reporting date at Nil.(Previous Year 7.92% p.a.) The loan is repayable in 48 monthly installments (including 12 months principal moratorium period) commencing from August, 2020 and ending on July, 2024. Existing Securities of vehicle loans extended to this loan. Loan is fully repaid during the year and no Due Certificate received on 26.08.2023.
HDFCBank
Carries interest as on the reporting date at Nil (Previous Year 8.25% p.a.)The loan is repayable in 48 monthly installments (including 12 months principal moratorium period) commencing from July, 2020 and ending on June, 2024. Existing Securities of vehicle loans extended to this loan. Loan is fully repaid during the year and no Due Certificate received on 21.08.2023
41 Financial risk management
The Company's activities expose it to business risk, interest rate risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance, the Company's risk management is carried out by a corporate finance team under policies approved by the board of directors and top management. Company's treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company's operating units. The board provides guidance for overall risk management, as well as policies covering specific areas.
(A) Credit Risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk onan ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligations,
iv) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.
Credit risk is managed at segment as well as Company level. For banks and financial institutions, only high rated banks/institutions are accepted.
For other financial assets, the Company assesses and manages credit risk based on internal control and credit management system. Internal credit control and management is performed on a Company basis for each class of financial instruments with different characteristics.
The company considers whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers available reasonable and supportive forward-looking information. Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit management system. A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.
Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates.Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered. ( Ageing of Account receivables - Refer Note 8)
(C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes investment, deposits, foreign currency receivables and payables. The Company's treasury team manages the Market risk, which evaluates and exercises independent control over the entire process of market risk management.
(i) Foreign currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As on the balance-sheet date, the Company does not have foreign currency receivables or payables and is therefore not exposed to foreign exchange risk.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.
For details of the Company's current and non current loans and borrowings, including interest rate profiles, refer to Note 16 and 20 of these financial statements.
Interest rate sensitivity
The Group is expected the interest rate fluctuations over next 12 months. The following table demonstrates the sensitivity to a 1% increase or decrease in the interest rates with all other variables held constant. The sensitivity analysis is prepared as at the reporting date.
49 The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date
50 The Company has not revalued its Property, Plant and Equipment .
51 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.
52 The Company is not declared wilful defaulter by any bank or financial Institution or other lender.
53 The Company is not involve in any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956
54 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.
55 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.
56 The Company does not have any such transaction which has not been recorded in the books ofaccounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
57 CSR Expenditure include expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof: Rs. Nil Lakh (Previous Year Rs. Nil Lakh).
Gross amount required to be spent as per aforesaid provision is Rs. Nil Lakh (Previous Year Rs. Nil Lakh)
58 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period except for Satisfaction ofcharge which is yet to be registered with Registrar of Companies (ROC) in respect of Mortgage loan of Rs.80.00 lakhs sanctioned byAditya Birla Finance Limited (ABFL). Charge of this loan is not satisfied with ROC as the Company has not received signed From CHG-4 from Aditya Birla Finance Limited (ABFL).
59 The Company has not traded or invested in any Crypto currency or Virtual Currency during the financial year.
60 There is no interest paid during the year and no principle and interest is outstanding to Micro, Small and Medium Enterprises as on Balance sheet date.
61 The accounts of certain trade receivables, trade payables, loans and advances given, various other payables and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However, there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year's financial statements on such reconciliation/adjustments.
62 The Company (Artheon Finance Limited) was registered as Non-Banking Financial Institution (NBFC) under Reserve Bank of India Act, 1034 vide Registration No. 13.00998 dated 5th September, 1998 as non-accepting deposit NBFC. The Company had never accepted any deposits from the public during its tenure of business of NBFC.
The Board of Directors in its meeting held on 5th March, 2013 decided not to carry any activity which falls under the criteria of NBFC for which registration with Reserve Bank of India (RBI) is required. The Management decided to venture in tothe education sector and merged Vinay Jain's Training Forum Pvt. Ltd. with itself(appointed date being 1st April, 2011). The Company vide letter dated 30.05.2013 had submitted to the Department of Non- Banking Supervision, Mumbai Regional Office, RBI an application for voluntary surrender of Certificate of Registration no. 13.00998 held as in the name of Artheon Finance Company. Subsequently, the company vide its letter dated 4th February, 2019 has surrendered Original Certificate of Registration as NBFC to The Department of Non-Banking Supervision, RBI.
As the company is not falling under NBFC category, the Company has not furnished any statements to RBI for the same. The Company is regularly following up with RBI towards cancellation of the NBFC licence for which their confirmation / approval is still awaited.
63 In view of ongoing discussions with the flat owners of the Hostel property, accrued liability for rent was not accounted for the period of two months ended 31 st March, 2024,as the company is trying for waiver of the same.
64 Previous years' figures have been re-grouped / re-arranged wherever necessary so as to make them comparable with those of the current year.
AS PER OUR ATTACHED REPORT OF EVEN DATE
FOR NIMESH MEHTA & ASSOCIATES FOR AND ON BEHALF OF THE BOARD
CHARTERED ACCOUNTANT Firm Registration No. 117425W
DR. VINAY JAIN DR. RAINA JAIN
DIRECTOR DIRECTOR
NIMESH MEHTA DIN No. 00235276 DIN No. 01142103
PARTNER
Membership No.102582 UDIN-24102582BKABXR1634
PLACE: MUMBAI SHRUTI SHARMA NANDU GITE
DATE: 18th June 2024 COMPANY SECRETARY CHIEF FINANCIAL OFFICER
Membership No.A52723
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