Accounting Policies of Aarcon Facilities Ltd. Company

Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

A. Basis of preparation

(i) Compliance with Ind-AS

These financial statements have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred to as the ''Ind-AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133
of the Companies Act, 2013(''Act’) read with of the Companies (Indian Accounting Standards) Rules,2015 as
amended and other relevant provisions of the Act.

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These financial statements for the year ended 31 March, 2021 are the first financials with comparatives,

prepared under IndAS. For all previous periods including the year ended 31^st March, 2020, the Company had
prepared its financial statements in accordance with the accounting standards notified under companies
(Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the Act (herein after referred
to as ‘Previous GAAP’) used for its statutory reporting requirement in India.

The accounting policies are applied consistently to all the period presented in the financial statements.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) Certain financial assets and liabilities that are measured at fair value;

2) Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value;

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating
cycle (Twelve months) and other criteria set out in the Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off rupees in Lacs.

B. Use of estimates and judgments

The preparation of financial statements requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between the actual results and estimates are recognized in the
period in which the results are known /materialized.

C. Property, plant and equipment

The Company has applied for the one time transition exemption of considering the carrying cost on the transition
date i.e. April 1, 2016 as the deemed cost under INDAS. Hence, regarded thereafter as historical cost.

Ind AS 101 Exemption: The Company has availed the exemption available under Ind AS 101, whereas the carrying
value of property plant and equipment has been carried forward at the amount as determined under the previous
GAAP netting off IND AS adjustment such as government grants. Considering the FAQ issued by the ICAI,
regarding application of deemed cost, the Company has disclosed the cost as at 1 April, 2016 net of accumulated
depreciation.

All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation:

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
The Company has adopted Straight line method rates prescribed in Schedule II of the Act for providing
depreciation.

D. Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

1) Those to be measured subsequently at fair value (either through other comprehensive income, or through

the Statement of Profit and Loss), and

2) Those measured at amortized cost.

The classification depends on the Company’s business model for managing the financial assets and the
contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial
assets carried at fair value through the Profit & Loss are expensed in the Statement of Profit and Loss.

E. Valuation of Inventories

There are no inventories during the current year.

F. Revenue recognition

The company recognizes revenue when the amount of revenue can be reliably measured it is possible that future
economic benefits will flow to the company.

Revenue from services:

Revenue from services is recognized in the accounting period in which the services are rendered. But there is no
Revenue from services during the current year.

Other Income:

Other income is recognised on accrual basis.

G. Foreign Exchange Transaction:

During the current year company has not done any foreign exchange transition.

H. Borrowings:

The company has obtained loan from directors for mitigation of working capital requirement. The balance
outstanding at end of the year has been confirmed.

I. Tax Expense:

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and
Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which
case, the tax is also recognized in other comprehensive income or equity.

- Current tax

Provision for current tax is not made as the company is having Loss in the current financial year.

- Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.

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Mar 31, 2014

A. Basis of Presentation

a. The financial statements have been prepared under the historical cost convention and on the basis of going concern, in accordance with the generally accepted accounting principles and provisions.

b. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

B. Fixed Assets:

Fixed Assets are recorded at cost before depreciation. The company capitalises all direct costs relating to the acquisition and installation of fixed assets.

C. Depreciation:

Depreciation is charged on fixed assets as per the Straight Line Method at the rates and in the manner prescribed under Schedule XIV to the Companies Act,1956.

D. Deferment of Taxes:

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

During the year a Deferred Tax Assets of Rs. NIL has been utilized for carried forward unabsorbed losses of the company. However looking to the business circumstances it is less probable that the company will be able to earn sufficient profits in future to absorb the huge unabsorbed losses to this extent the deferred tax assets should not be recognized by the company.

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Mar 31, 2013

(A) Basis of Presentation

a. The financial statements have been prepared under the historical cost convention and on the basis of going concern, in accordance with the generally accepted accounting principles and provisions.

b. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

(B) Fixed Assets:

Fixed Assets are recorded at cost less depreciation. The company capitalises all direct costs relating to the acquisition and installation of fixed assets.

(C) Depreciation

Depreciation is charged on fixed assets as per the Straight Line Method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

(D) Deferment of Taxes:

Current tax is determined as the amount of tax payable in respect of taxable income forthe period. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

During the year a Deferred Tax Assets of Rs. NIL has been utilised for carried forward unabsorbed tosses of the company. However looking to the business circumstances it is less probable that the company will be able to earn sufficient profits in future to absorb the huge unabsorbed losses to this extent the deferred tax assets should not be recognized by the company.

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Mar 31, 2011

(A) Basis of Presentation

a. The financial statements have been prepared under the historical cost convention and on the basis of going concern, in accordance with the generally accepted accounting principles and provisions. b. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis. Insurance and other claims are accounted for as and when admitted by the appropriate authorities. (B) Fixed Assets : Fixed Assets are recorded at cost less depreciation. The company capitalises all direct costs relating to the acquisition and installation of fixed assets. (C) Depreciation Depreciation is charged on fixed assets as per the written down value method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956. (D) Deferment of Taxes : Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the year a Deferred Tax Assets of Rs. 18,716/- has been utilised for carried forward unabsorbed losses of the company. However looking to the business circumstances it is less probable that the company will be able to earn sufficient profits in future to absorb the huge unabsorbed losses to this extent the deferred tax assets should not be recognized by the company.

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Mar 31, 2010

A. The financial statements have been prepared under the historical cost convention and on the basis of going concern, in accordance with the generally accepted accounting principles and provisions.

b. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

(B) Fixed Assets :

Fixed Assets are recorded at cost less depreciation. The company capitalises all direct costs relating to the acquisition and installation of fixed assets.

(C) Depreciation

Depreciation is charged on fixed assets as per the written down value method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

(D) Deferment of Taxes :

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

During the year a Deferred Tax Assets of Rs. 15,060/- has been utilised for carried forward unabsorbed losses of the company. However looking to the business circumstances it is less probable that the company will be able to earn sufficient profits in future to absorb the huge unabsorbed losses to this extent the deferred tax assets should not be recognized by the company.

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Mar 31, 2009

(A) Basis of Presentation

a. The financial statements have been prepared under the historical cost convention and on the basis c going concern, in accordance with the generally accepted accounting principles and provisions.

b. The Company generally follows mercantile system of accounting and recognises significant items c income and expenditure on accrual basis. Insurance and other claims are accounted for as and whe admitted by the appropriate authorities.

(B) Fixed Assets:

Fixed Assets are recorded at cost less depreciation. The company capitalises all direct costs relatin to the acquisition and installation of fixed assets.

(C) Depreciation

Depreciation is charged on fixed assets as per the written down value method at the rates and in th manner prescribed under Schedule XIV to the Companies Act, 1956.

(D) Deferment of Taxes :

Current tax is determined as the amount of tax payable in respect of taxable income for the perioc Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being th difference between taxable income and accounting income that originate in one period and are capabl of reversal in one or more subsequent periods.

During the year a Deferred Tax Assets of Rs. 2,82,621/- has been created for carried forwar unabsorbed losses of the company. However looking to the business circumstances it is less probabl that the company will be able to earn sufficient profits in future to absorb the huge unabsorbed losses t this extent the deferred tax assets should not be recognized by the company.