Arihant Institute Ltd reported a modest Profit After Tax of Rs 1.89 lakh for FY26. However, the company is under scrutiny following a qualified audit report revealing over Rs 3.14 crore in outstanding statutory dues, including Income Tax and GST, alongside a cancelled GST registration. While management claims the business remains a going concern, investors should exercise caution regarding these significant regulatory and financial liabilities.
Arihant Institute Reports FY26 Results Amid Serious Audit Qualifications
Profit After Tax rose to Rs 1.89 lakh from Rs 1.54 lakh in the previous year. Statutory arrears remain high, with Income Tax dues totaling over Rs 2.46 crore.
Reader Takeaway: Marginal profit growth is overshadowed by massive unpaid statutory liabilities and cancelled GST registrations.
What just happened
Arihant Institute Ltd held its 19th Annual General Meeting on September 30, 2026. While the company declared no dividend for the year, the filing highlighted severe operational and financial discrepancies identified by statutory auditors, M/s. Devadiya & Associates.
Why this matters
The auditor report contains significant qualifications, noting that the company is failing to deposit statutory dues regularly. Outstanding arrears include Rs 2.46 crore in Income Tax, Rs 35.40 lakh in GST, and Rs 32.68 lakh in TDS. Furthermore, the company's GST registration is currently cancelled, and regular filings have ceased, posing a major legal and operational risk.
Risks to watch
The audit report explicitly questions the company's ability to continue as a going concern due to accumulated losses and the scale of government dues. The cancellation of the GST registration indicates potential regulatory non-compliance that could lead to penalties or business suspension.
Management response
Management has stated that the company's financial position is now sound and claims that most dues have been cleared. Despite the auditor's concerns, management maintains that the company is a going concern and that the current situation is an exceptional occurrence.
Context metrics
Revenue from operations reached Rs 6.14 lakh for FY26, up from Rs 4.29 lakh in FY25. However, Other Income dropped significantly from Rs 5.19 lakh to Rs 1.21 lakh over the same period.