Significant Accounting Policies & Notes on Accounts

1. Significant Accounting Policies

The significant Accounting Policies followed by the Society are as stated below:

1.1 Institutional Overview & Mission

Raja Education & Bahuuddeshiya Society (hereinafter referred to as "the Society") functions primarily within the Vidarbha region of the State of Maharashtra. The Society is established as a public charitable entity with an operational mission to provide completely free quality education, rural social welfare infrastructure, healthcare awareness, and economic empowerment opportunities within underprivileged and rural communities.

The primary wings of intervention encompass:

Free Education Architecture: Running Urdu Primary Schools, High Schools, and Junior Colleges to equip youth with holistic moral guidance and academic resources.
Women's Empowerment: Operating vocational training networks to foster self-sufficiency and financial independence among women.
Healthcare & Sanitation: Executing regional pulse polio drives, triple immunization vaccination camps, and local sanitation campaigns.
Environmental Sustainability & Relief: Conducting organic farming training modules, widespread tree plantation drives, and distributing essential food grains and medical supplies during public crises.

1.2 Basis of Preparation of Financial Statements

The Financial Statements are prepared under the historical cost convention.
These statements are systematically compiled in accordance with generally accepted accounting principles (GAAP) in India and the applicable mandatory accounting standards issued by relevant statutory regulatory authorities.
The preparation of financial accounts demands the adoption of certain administrative estimates and assumptions by management that can directly affect the reported amounts of revenue, expenditure, assets, liabilities, and the disclosure of contingent liabilities at the date of the financial statements.
Any differences arising between the actual final results and the baseline estimates are formally recognized in the fiscal year in which they become known or materialize.

1.3 Fixed Assets

All Fixed Assets are stated in the books of accounts at their original cost of acquisition, which includes applicable taxes, duties, freight, and other directly incidental expenses relating to the acquisition, transit, and structural installation of the concerned assets.
Any dedicated external sponsorship or institutional grant received against specific assets is adjusted and deducted against the cost incurred for generating the respective asset.

1.4 Depreciation

Depreciation on all fixed assets is calculated and provided under the Written Down Value (WDV) method.
This depreciation is calculated at the explicit rates and in the exact manner prescribed under the rules of the Income Tax Act, 1961.

1.5 Revenue Recognition

Income arising from vocational training fees, government grants, student aid, project scholarships, and accrued interest earned on bank deposits is recognized systematically on an accrual basis.
Public donations, community contributions, and voluntary financial gifts are recognized strictly on a physical receipt basis.

1.6 Employee Benefits

Statutory contributions made toward the Employee Provident Fund (PF) and the Employee State Insurance (ESI) frameworks are directly charged to the institutional Income and Expenditure Account during the period they occur.

1.7 Investments

Investments that are readily realizable and intended to be held for a period of not more than one year from the acquisition date are formally classified as current investments.
All other capital placements or locked endowments are classified as long-term investments.

1.8 Income Tax Exemptions

Income Tax and corresponding Deferred Tax Assets or Liabilities are not recognized within the financial statements.
This non-recognition is due to the statutory tax exemptions available to the organization under Sections 11 and 12 of the Income Tax Act, 1961.

1.9 Impairment of Assets

The Society assesses at each individual balance sheet date whether there is any valid indication that an institutional asset may be impaired.
If any such internal or external indication exists, the management estimates the definitive recoverable amount of the asset.
If the recoverable amount of the asset—or the recoverable amount of the cash-generating unit to which the asset belongs—is lower than its current carrying book value, the carrying amount is instantly reduced to its recoverable amount.
This reduction is categorized as an impairment loss and is recognized immediately within the institutional income and expenditure account.
If at a subsequent balance sheet date there is a clear indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed, and the asset is reflected at its recoverable amount, subject to a maximum limit of its depreciated historical cost.

1.10 Provisions, Contingent Liabilities, and Contingent Assets

A formal provision is recognized only when the Society has a present legal or constructive obligation as a result of a past event, where it is highly probable that an outflow of economic resources will be required to settle the obligation, and a reliable financial estimate of the amount can be executed.
Provisions (excluding specific long-term retirement benefits) are not discounted to their present value. Instead, they are determined based on the best management estimate required to settle the specific obligation at the active balance sheet date.
These provisions are reviewed at each balance sheet closing date and adjusted to reflect the current best operational estimates.
Contingent liabilities are not recognized or provisioned for within the financial statements, but are disclosed via notes. Contingent Assets are neither recognized nor disclosed within the financial statements.

2. Notes on Accounts & Disclosures

Asset Realization Assurance: In the firm opinion of the Executive Trustees, the current assets, institutional loans, and programmatic financial advances will realize a real-world value of not less than the specific amounts stated in the Balance Sheet, if realized in the standard, ordinary course of daily institutional business.
Corpus Fund Management: The primary Corpus Fund of the organization includes capital funds specifically assigned and dedicated by the Executive Management Committee to act as a permanent institutional corpus.
Bank Balances Verification: The final balances held with scheduled banks within current accounts, operational savings accounts, and fixed deposits are formally confirmed and verified by the respective banking institutions.
Contingent Liabilities: Contingent liabilities not explicitly provided for in the financial accounts stand at Nil for the current tracking cycle.
Comparative Layouts: Previous financial year figures have been systematically regrouped, rearranged, and reclassified wherever necessary to match the structural layout and presentation format adopted in the current financial year.

2.1 Auditor's Remuneration Disclosure

The total remuneration and professional fees paid to the statutory auditors during the fiscal tracking cycle include:

Professional Service Rendered	Current Financial Year (Rs.)	Previous Financial Year (Rs.)
Statutory Audit Fees	10,000	10,000
Other Advisory Services	Nil	Nil
Total Remuneration	10,000	10,000

3. Statutory Sign-Off & Governance Authorization

As per our formal financial report of even date attached, compiled for Raja Education & Bahuuddeshiya Society:

For Localizing Audit Partners & Associates

Ramesh Chaudhari & Co. Chartered Accountants

Designated CA Partner

Membership No: 039960

Firm Registration No (FRN): 108534W

Place: Akola, Maharashtra

For the Raja Education & Bahuuddeshiya Society Executive Management Committee

Mudassir Ahmad Khan Jamil Ahmad Khan

Executive Secretary / Trustee

Khan Rahil Shakil Ahmad

President / Trustee

Date: May 18, 2026

+91 94054 57145

urdupraja@gmail.com

Pimpalgaon Raja, Dist. Buldhana, M.S., India

Raja Education & Bahuuddeshiya Society