A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.A contingent liability is
a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. There is no contingent liability as at 31st March, 2025.
Segment Reporting
The company operates in segments of investment in securities and extending financial loan services, which are considered by the
management as a single segment for reporting purposes in order to analyse risk-return fundamentals based on internal organisational
structure.
During the previous year the company has allotted 36,65,59,623 equity shares of face value of Rs. 1/- each (" Right Equity Shares") at a premium
of Rs.0.20 per share aggregating to Rs, 43,98,71,547.60
(b) Rights, preferences and restrictions attached to equity shares
The company has one class of equity shares having a par value of 1 /- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the
holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.
(i)
Securities Premium
Securities premium is used to record the premium on issue of shares. It can be utilised only for limited purposes in accordance with the
provisions of the Companies Act, 2013.
(ii)
Retained Earnings
Retained earnings represents the surplus in profit and loss account and appropriations.
(iii)
Reserve fund in terms of section 45-IC (1) of the Reserve Bank of India Act,1934
Reserve fund is created as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 as a statutory reserve.
36 Financial Risk Management Objectives and Policies
(A) Financial risk management
The company has a risk management committee which has the responsibility to identify the risk and suggest the management the mitigation plan for the identified risks in
accordance with the risk management policy of the Company. The risk management policies are established to ensure timely identification and evaluation of risks, setting
acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency.
These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company seeks to minimise the effects of
these risks by using derivative financial instruments, credit limit to exposures, etc., to hedge risk exposures.
(i) 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 prices comprise three
types of risk: foreign currency risk, interest rate risk, investment risk.
(ii) Interest rate risk
Arising from:
Interest rate risk stems from movements in market factors, such as interest rates, credit spreads which impacts investments, income and the value of portfolios.
Measurement,monitoring and management of Risk:
Interest rate risk is measured, monitored by assessment of probable impacts of interest rate sensitivities under stimulated stress test scenarios given range of probable
interest rate movements on both fixed and floating assets and liabilities.
(iii) Liquidity risk management
Arising from:
Liquidity risk arises from mismatches in the timing of cash flows, whereas funding risk arises when long term assets cannot be funded at the expected term resulting in
cashflow mismatches.
Measurement,monitoring and management of Risk:
Liquidity and funding risk is measured by identifying gaps in the structural and dynamic liquidity statements.Monitored by assessment of the gap between visibility of
funds and the near term liabilities given under current liquidity conditions and evolving regulatory directions for NBFCs.
Other Statutory Disclosures as per the Companies Act, 2013
-The Company does not have any transaction with companies struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956.
- The title deeds of the immovable properties are held in the name of the Company.
- The Company is not required to incur any CSR expenditure during the year.
- No proceedings have been initiated on or are pending against the company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988 and Rules made thereunder.
- The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
- There is no non-compliance with regard to the number of layers of companies prescribed under clause (87) o1
section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
- The Company has not surrendered or disclosed any income during the current or previous year in the tax
assessents under the Income Tax Act, 1961.
- The Company has not traded or invested in crypto currency or virtual currency during the current or previous
yea r.
- The Company has not granted loans or advances in the nature of loans to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly wih any other person.
- The Company has not advanced or loaned or invested funds to any other person or entity,including foreign entity
(Intermediary) with the understanding that the Intermediary shall :
a) directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behah
of the company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
- The Company has not received any fund from any person(s) or entity(s),including foreign entities (Funding Party
with the understanding (whether recorded in writingg or otherwise) that the company shall :
a) directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behah
of the Funding Party (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
Impairment of Asset
In the opinion of Management none of the assets have impaired in value as shown in books.
Segment Reporting
The Company is primarily engaged in the business of polyester fabrics. The same is considered as a business
segment and the management consider this as a single reportable segment. Hence, Accounting Standard (AS) 17
on Segment Reporting are not applicable on the Company.
The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary as
per the Schedule III to the Companies Act, 2013. Amounts and other disclosures for the preceding year are
included as an integral part of the current year financial statements and are to be read in relation to the amounts
and other disclosures relating to the current year.
For and on Behalf of Board of Directors of ARC Finance Ltd
As per our report of even date
For SSRV& ASSOCIATES
Chartered Accountants
FRN 135901W
Virendra Kumar Soni Asis Banerjee
Managing Director Director
DIN - 08554333 DIN:05273668
VISHNU KANT KABRA
PARTNER
M. No 403437
UDIN: 25403437BMIORT1075
Somnath Chitrakar Sweety Agarwal
Chief Financial Officer Company Secretary
Place : Kolkata PAN - BXCPC5616E PAN - BPFPG8336C
Date : 28.05.2025
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