J. Provisions:
A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation, i n respect of which are liable estimate can
be made. Provisions are determined based on management estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current
management estimates.
K. Employment benefits:
During the year the company has adopted Accounting Standard 15 "Employee Benefits". In accordance with the
stipulations of the standard the company has charged expense to Profit & Loss Account.
(i) Defined contribution plans
No such contribution is required for the current year and so not charged to Profit and Loss Account.
(ii) Defined benefit plan
No such Benefit is required for the current year and so not charged to Profit and Loss Account.
L. Earnings Per Share:
A basic earnings per share is calculated by dividing:
-the profit attributable to owners of the Company
-by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares.
Diluted earnings per Share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into
account:
M. World Health Organisation (WHO) declared outbreak of Coronavirus Disease (COVID-19) a global pandemic on
March 11, 2020. Consequent to this, Government of India declared lockdown on March 23, 2020 and the
Company suspended the operations in all ongoing projects in compliance with the lockdown instructions
issued by the Central and State Governments. COVID-19 has impacted the normal business operations of the
Company by way of interruption in Project execution, supply chain disruption, unavailability of personnel etc.
during the lock-down period.
The Company has made detailed assessment of its liquidity position for the next year and the recoverability
and carrying value of its assets comprising property, plant and equipment, investment properties, intangible
assets, right of use assets, investments, inventory, advances, and trade receivable. Deferred taxes, other
financial and non-financial assets etc. Based on current indicators of future economic conditions, the Company
expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent
uncertainty around the extent and timing of the potential future impact of the COVID-19 pandemic which may
be different from that estimated as at the date of approval of these financial statements.
The Central and State Governments have initiated steps to lift the lockdown and the Company will adhere to
the same as it resumes its activities. Work has already restarted. Since it is only about ten weeks into the
pandemic, the Company will continue to closely observe the evolving scenario and take into account any
future developments arising out of the same.
N. Going Concern Basis:
Since 11th March 2020, as a consequences of COVID-19 out spread the operation of the company have been
partially and adversely affected.
The future plans of the company to start a real estate project got delayed due to lockdown.
However, the management has disclosed that the operations were disrupted for a maximum period of 10
weeks and the company has inherent strength to recover losses caused by such disruption.
Hence, the going concern basis of the Company is not affected by the COVID-19.
O. Events occurring after balance sheet:
From March 19,2020 the spread of COVID-19 has severely impacted many companies. The operations of our
company has also been / are likely to be affected.
However, the company has determined that these events are non-adjusting subsequent events. Accordingly, the
financial position and results of operations as of and for the year ended 31st March 2021 have been not adjusted
to reflect their impact.
P. Estimation of uncertainties relating to the global health pandemic from COVID- 19:
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the
carrying amounts of property plant & equipment, Intangible assets, Revenue, Foreign Currency Transaction. In
developing the assumptions relating to the possible future uncertainties in the global economic conditions
because of this pandemic, the Company, as at the date of approval of these financial statements has used
internal and external sources of information on the expected future performance of the Company. The Company
has performed sensitivity analysis on the assumptions used and based on current estimates expects the carrying
amount of these assets will be recovered. The impact of COVID-19 on the company financial statements may
differ from that estimated as at the date of approval of these financial statements.
For VJ.Amin & Co, For Aarcon Facilities Limited
Chartered Accountants
Dharamsinh T Kesharani Bharat R. Gupta Anupama B. Gupta
(Partner) Managing Direct Director
Membership No. 047553 DIN: 00547897 DIN:02221605
FRN: 0100335W
Place: Vadodara. Place: Vadodara. Place: Vadodara.
Date: 17/05/2025 Date: 17/05/2025 Date: 17/05/2025
21. OTHER NOTES ON ACCOUNTS
(1) FAIR VALUE MEASUREMENT
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
i. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other
current liabilities, short term loans from banks and other financial institutions approximate their carrying
amounts largely due to short term maturities of these instruments.
ii. Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on this
evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair
value of such instruments is not materially different from their carrying amounts.
iii. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the
fair values.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument
by valuation technique.
Level 1: Quoted (unadjusted) price in active markets for identical assets or liabilities
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data.
(2) Financial risk management objectives and policies
In the course of business, the company is exposed to certain financial risk that could have considerable influence
on the Company's business and its performance. These include market risk (including currency risk, interest risk
and other price risk), credit risk and liquidity risk. The Board of Directors review and approves risk management
structure and policies for managing risks and monitors suitable mitigating actions taken by the management to
minimize potential adverse effects and achieve greater predictability to earnings.
a) Market Risk - Interest rate risk:
Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. At the current reporting date, company does not have any borrowings.
b) Market Risk- Foreign currency risk.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. There is no foreign exchange currency transaction
during the year.
c) Equity Price Risk
Equity price risk is related to the change in market reference price of the investments in quoted equity
securities. The fair value of some of the Company's investments exposes the company to equity price risks.
d) Credit Risk
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures
and control relating to customer credit risk management. Credit quality of a customer is assessed based on
customer profiling, credit worthiness and market intelligence. Trade receivables consist of a large number of
customers, spread across geographical areas. Outstanding customer receivables are regularly monitored.
At the reporting date, there is no trade receivable.
Financial Assets are considered to be of good quality and there is no significant increase in credit risk.
e) Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity
risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements.
The table below summarizes the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments.
(3) Current Tax:
Provision for current tax is not made as the company is having Loss in the current financial year.
(4) In the opinion of the Management and to the best of their knowledge and belief, the value on realisation of
loans and advances, debtors and other current assets in the ordinary course of the business will not be less than
the amount at which they are stated in Balance Sheet.
(5) Figures have been rounded off to the nearest rupee.
(6) Claims against the Company not acknowledged as debts Rs. NIL (previous year Rs. NIL).
(7) The Company has initiated the process to identify the status of its suppliers and asked them to inform the
Company if they are a Micro, Medium and Small Enterprise under Micro, Medium and Small Enterprise Act,2006
(MSMED), so that the information regarding dues to MSMED Enterprise could be stated. However, since no
response have been received from the suppliers, due to which it is not possible for the Company to disclose
exactly, the dues to S.S.I. units included in the Sundry Creditors.
(11) Information relating to Consumption of Materials:
There is no consumption of material during the year.
(12) Segment Reporting:
The Company is doing business of hotel & Restaurant during the year. Company had business of entertainment since
F.Y 2014-15 which has been discontinued. However Company is having assets in respect of business of
entertainment.
(13) In accordance with Ind AS-108 - there are no separate operating segments hence segment information has not been
disclosed as there is only one product and has no separate segments.
(14) The Company has not written off Misc. Expenditure Rs.00.00 as per AS - 26.
(16) The Company has granted non-current advances amounting to Rs.3,50,40,585/- for Real Estate, which is subject to
confirmation and Reconciliation.
(17) The name of Company has been changed to "Aarcon Facilities Limited" from " R.B. Gupta Financials Limited" with
the effect from 26/11/2013.
For VJ.Amin & Co, For Aarcon Facilities Limited
Chartered Accountants
Dharamsinh T Kesharani Bharat R. Gupta Anupama B. Gupta
(Partner) Managing Direct Director
Membership No. 047553 DIN: 00547897 DIN:02221605
FRN: 0100335W
Place: Vadodara. Place: Vadodara. Place: Vadodara. .
Date: 17/05/2025 Date: 17/05/2025 Date: 17/05/2025
|