Accounting Policies of Sparkle Gold Rock Ltd. Company

Mar 31, 2025

Note 1: Material Accounting Policies

a) Basis of preparation

The Financial Statements are prepared in accordance with Indian Accounting
Standards (IND AS) notified under Section 133 of the Companies Act, 2013 read with
Companies (Indian Accounting Standards) Rules, 2015; and the other relevant
Provisions of Companies Act, 2013 and Rules thereunder.

The Financial Statements have been prepared under historical cost convention basis
on accrual basis.

The Company’s presentation and functional currency is Indian Rupees (INR). All
values are in rupees lakhs, except where otherwise indicated.

b) Use of Judgements and Estimates

Necessary judgements, estimates and assumptions that affect the amounts reported
in the financial statements and notes thereto are made during the reporting period
and difference between the actual and the estimates are recognized in the period in
which the results materialize.

c) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost net of accumulated depreciation /
amortization and accumulated impairment losses, if any.

Related expenditure (including temporary facilities and crop compensation
expenses) incurred during acquisition and installation are capitalized.

The residual values and useful lives of Property, Plant and Equipment are reviewed
during each financial year and changes are accounted for as change in accounting
estimates on a prospective basis.

Depreciation on Property, Plant and Equipment is provided on straight line method.
In accordance with requirements prescribed under Schedule II of Companies Act,
2013, the Company has assessed the estimated useful lives of its Property, Plant
and Equipment and has adopted the useful lives and residual value as prescribed in
Schedule II of Companies Act, 2013.

An asset is treated as impaired when the carrying cost of an asset exceeds its
recoverable Value and the Impairment loss is charged to profit and loss account in
the year in which asset is impaired.

d) Inventories

Raw Material, Stores and spares which do not meet the recognition criteria under
Property, Plant and Equipment are valued at cost.

Finished goods and work in progress are valued at cost or net of realizable value
whichever is lower.

e) Government Grants

Government grants in the form of capital/investment subsidy are treated as capital
reserves.

Grants relating to fixed assets are adjusted in the cost of such assets.

f) Revenue recognition

Revenue from the sale of goods is recognized when the significant risks and rewards
of ownership of the goods has been transferred to the buyer and Company retains
neither managerial nor effective control over the goods sold.

Sales are measured at the fair value of the consideration received or receivable and
are net of discount, include applicable excise duty, surcharge and other elements as
are allowed to be recovered as part of the price but excludes taxes.

Income from sale of scrap is accounted for on realization.

Interest income is recognized on an effective interest rate (EIR) basis,

g) Taxes on income

Provision for current tax is made in accordance with the provisions of the Income Tax
Act, 1961.

Deferred tax liability/asset on account of temporary differences between the tax base
and carrying amount of assets and liabilities is recognized using tax rates and tax
laws enacted or substantively enacted as at the Balance Sheet date. In the event of
unabsorbed depreciation or carry forward of losses, deferred tax assets are
recognized, if there is reasonable certainty that sufficient future taxable income will
be available to realize such assets.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, is considered as
an asset (presented under Deferred Tax) when it is probable that the future economic
benefits associated with it, will flow to the Company.

---

Mar 31, 2024

1. Significant Accounting Policies

1. 1 a) The financial Statements have been prepared on accrual basis under the historical cost convention

1.2 Fixed Assets:

a) Fixed Assets are stated at cost less depreciation. All expenses relating to the acquisition and installation of fixed assets are capitalised.

b) Depreciation on all assets is being provided on straight line method at rates specified in Schedule 11 to the Companies Act 2013

c) An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable Value and the Impairment loss is charged to profit and loss account in the year in which asset is impaired

1.3 Government Grants:

a) Grants in the form of capital/investment subsidy are treated as capital reserves.

b) Grants relating to fixed assets are adjusted in the cost of such assets.

1.4 Inventories:

a) Raw Materials, Stores and spares, are valued at cost,. Finished goods and work in progress are valued at cost or net realisable value whichever is lower.

1.5 INVESTMENTS:

Current Investments are carried at lower off cost or fair value whichever is less and non current investments are stated at cost provision for diminution in the value of non current investment is made only if such declain is other than temporary in nature.

---

Mar 31, 2015

1. 1 a) The financial Statements are prepared on accrual basis under the historical cost convention. b) Sales Excludes amount recovered towards Value Added Tax & Other taxes

1.2 Fixed Assets:

a) Fixed Assets are stated at cost less depreciation. All expenses relating to the acquisition and installation of fixed assets are capitalised.

b) Depreciation on all assets is being provided on straight line method at rates specified in Schedule II to the Companies Act 2013

c) Depreciation on assets sold, discarded or demolished during the year i s being provided at their

Respective rates up to the month in which such assets are sold, discarded or demolished.

d) An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable Value And the Impairment loss is charged to profit and loss account in the year in which asset is impaired.

1.3 Government Grants:

a) Grants in the form of capital/investment subsidy are treated as capital reserves.

b) Grants relating to fixed assets are adjusted in the cost of such assets.

1.4 Inventories:

a) Raw Materials, Stores and spares, are valued at cost, Finished goods and work in progress are valued at cost or net realisable value whichever is lower.

1.5 INVESTMENTS: Current Investments are carried at lower off cost or fair value whichever is less and noncurrent investments are stated at cost provision for diminution in the value of non current investment is made only if each declaim is other than temporary in nature.

1.6 Due to uncertainty, Income on account of Insurance claims are accounted for as and when received.

RETIREMENT BENEFITS :

1.7 Provision for employer's contribution towards P.F & E.S.I has been made during the year and it is paying the premium as per contract. And also the premium as per contract. And no provision has been made for the year.

---

Mar 31, 2013

1. 1 a) The Financial Statements are prepared basic on historical cost convention.

b) Sales Excludes amount recovered towards Value Added Tax & others.

1.2. Fixed Assets:

a) Fixed Assets are Started at cost less depreciation. All expences relating to the acquisition and installation of fixed assets are capitalised

b) Depreciation on all assets is being provided on straight line method at rates specified inSchedule XIV to the companies Act 1956.

c) Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates upto the month in which such assets are sold, discarded or demolished.

1.3. GOVERNMENT GRANTS:

a) Grants in the form of capital/investments subsidy are treated as capital reserves.

b) Grants relating to fixed assets are adjusted in the cost of such assets.

1.4.INVENTORIES:

a) Raw material. Stores & spares, are valued at cost, Finished goods and work in process are valued at cost are net. realisable value whichever is lower.

1.5. INVESTMENTS: Investments are started at cost.

1.6. Due to uncertainty, Income on account of Insurance claims are accounted for as and when received

RETIREMENTS BENIFfTS:

1.7 Provision for employers contribution towards P.F. & E.S.I, has been made during the year.

1.8 The company has taken policy for employees Gratuity and it is paying the premium as per contract.

a) Loan received from KSFC-Secured by the mortgage of Property situated at No. A136,1st Stage, Peenya, Bangalore in the Name of Two Directors along with a personal guarantee of Two Directors.

b) Loan From Kotak Mahindra Prime Loan against hypothecation of Vehicle.

---

Mar 31, 2012

1. 1 a) The Financial Statements are prepared basic on historical cost convention, b) Sales Excludes amount recovered towards Value Added Tax & others.

1. 2. Fixed Assets:

a) Fixed Assets are Started at cost less depreciation. All expences relating to the acquisition and installation of fixed assets are capitalised

b) Depreciation on all assets is being provided on straight line method at rates specified inSchedule XIV to the companies Act 1956.

c) Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates upto the month in which such assets are sold, discarded or demolished.

1.3. GOVERNMENT GRANTS:

a) Grants in the form of capital/investments subsidy are treated as capital reserves.

b) Grants relating to fixed assets are adjusted in the cost of such assets.

1. INVENTORIES:

a) Raw material, Stores & spares, are valued at cost, Finished goods and work in process are valued at cost are net. realisable value whichever is lower.

1.5. INVESTMENTS: Investments are started at cost.

1.6. Due to uncertainly, Income on account of Insurance claims are accounted for as and when received RETIREMENTS BENIFITS:

1.7 Provision for employers contribution towards P.F. & E.S.I. has been made duriilgthe year.

1.8 The company has taken policy for employees Gratuity and it is paying the premium as per contract.

a) Loan received from KSFC-Secured by mortgage of Property situated at No. A136,1st Stage, Peenya, Bangalore in the Name of Two Directors along with a personal guarantee of Two Directors.

b) Loan From Kotak Mahindra Prime Loan against hypothecation of Vehicle.

---

Mar 31, 2010

1.1 a) The financial Statements are prepared based on historical cost convention.

b) Sales Excludes amount recovered towards Valu Added Tax & Other taxes

1.2 Fixed Assets:

a) Fixed Assets are stated at cost less depreciation. All expenses relating to the acquisition and installation of fixed assets are capitalised.

b) Depreciation on all assets is being provided on straight line method at rates specified in Schedule XIV to the Companies Act 1956.

c) Depreciation on assets sold, discarded or demolished during the year is being provided at their

Respective rates upto the month in which such assets are sold, discarded or demolished.

1.3 Government Grants:

a) Grants in the form of capital/investment subsidy are treated as capital reserves.

b) Grants relating to fixed assets are adjusted in the cost of such assets.

1.4 Inventories:

a) Raw Materials, Stores and spares, are valued at cost,. Finished goods and work in progress are valued at cost or net realisable value whichever is lower.

1.5 INVESTMENTS: Investments are stated at cost.

1.6 Due to uncertainly, Income on account of Insurance claims are accounted for as and when received.