Notes to Accounts of Sparkle Gold Rock Ltd.

Mar 31, 2025

h) Provisions and contingent liabilities

Contingent Liabilities are disclosed in respect of:

a) A possible obligation that arises from past events but their existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or

b) A present obligation where it is not probable that an outflow of resources
embodying economic benefit will be required to settle the obligations or a
reliable estimate of the amount of obligation cannot be made.

c) Contingent Liabilities are considered only for items exceeding Rs.5 lakhs in
each case. Contingent Liabilities in respect of show-cause notices are
considered only when converted into demands. Capital Commitments are
considered only for items exceeding Rs.1 lakh in each case.

A provision is recognized when there is a present obligation as a result of a past
event and it is probable that an outflow of resources will be required to settle the
obligation in respect of which a reliable estimate can be made.

If the effect of the time value of money is material, provisions are discounted using a
rate that reflects, when appropriate, the risks specific to the liability. When

......... discounting is used, the increase in the provision due to the passage of time is

. fecognized as a finance cost.

i) Accounting/ classification of expenditure and income

Insurance claims are accounted on acceptance basis.

All other claims/entitlements are accounted on the merits of each case/realization.

Income and expenditure of previous years which are considered to be insignificant
are not considered for restatement of financial statements of previous years.

j) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the
period attributable to equity shareholders (after deducting preference dividends, if
any, and attributable taxes) by the weighted average number of equity shares
outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average number of
shares outstanding during the period are adjusted for the effect of all dilutive
potential equity shares.

k) Cash and Cash equivalents

Cash and cash equivalents comprises cash in hand, cash at banks and demand
deposit with banks which are Short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value.

l) Current / Non-current classification

Classification of current / non-current assets and liabilities in the Balance Sheet is
based on principles as mentioned below:

An asset is treated as current when it is:

* Expected to be realised or intended to be sold or consumed in normal operating
cycle;

• Held primarily for the purpose of trading;

'' ; - • Expected to be realised within twelve months after the reporting period, or

• Cash or Cash Equivalents unless restricted from being exchanged or used for
settlement of a liability arising at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is treated as current when it is:

• Expected to be settled in normal operating cycle;

• Held primarily for the purpose of trading;

¦ Due to be settled within twelve months after the reporting period, or

• Not granting any unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period

All other liabilities are classified as non-current,

m) Cash Flows

Cash flows are reported using the indirect method, whereby net profit before tax is
adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities are segregated. For the purpose of the Statement
of Cash Flows, cash and cash equivalent consist of cash, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the Company''s
cash management.

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Mar 31, 2015

1. Company has not appointed company secretary in terms of section 203 of the companies Act of 2013.

2. The balances in the parties accounts under Sundry Creditors, Sundry Debtors, Advance from Customers, Loans & Advances, Deposits etc., are subject to confirmation./ Reconciliation/ Adjustments if any.

3. Sundry creditors dues to Micro, small and Medium enterprisers development Act,2006, could not be ascertained due to lack of information.

4. Expenditure incurred in foreign currency- Rs. NIL

5. C I F Value of imports of raw material Rs NIL.

6. Previous years figures have been regrouped and reclassified wherever necessary in order to be in conformity with current years presentation.

7. As the company has brought forward taxable losses, no provision for tax has been made. Taking into account the consideration of prudence, no asset or liability is anticipated on account of Deferred tax.

8. The Company has taken a Ginning unit on lease basis with effect from 29.08.2008, the operating results were incorporated in the accounts

OTHER DISCLOSURES -

1. Segments have been identified in line with the accounting standard 17 "Segment Reporting" taking into account the organisation structure as well as the differing risks and returns.

2. Company has disclosed business segment as the primary segment.

3. Composition of business segment

Comprises Name of the segment of

a) Cotton Yarn

b) Cotton Lint

c) Others Wastes, Cotton seeds & Kappas

9. The segment revenue results, assets and liabilities include the respective amounts identifiable to each of the segments and amounts allocated on reasonable basis.

10. The accounting policies of the segments are the same as those described in the significant accounting policy as referred in schedule 18 to the accounts.

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Mar 31, 2013

1. Company has not appointed company secretary in terms of section 383 A of theompanies Act of 1956.

2. The Balances in the parties accontsunder sundry Creditors, Sundry Debtors, Advance from Customers, Loans & Advances, Deposits etc., are subject to confirmation. Reconcialation''Adjustments if any.

3. Sundry creditors due to small scale and ancillary undertakings could not be ascertained due to lack of information.

4. Quantitative particulars (As required under part-ll of schedule VI of the necessary Act of 1956) as per Annexur-A.

5. Expenditure incurred in foreign currency- Rs. NIL .

6. C I F Value of imports of raw material Rs. NIL.

7. No of employees drawing remuneration more than Rs.2,00,000/- p.m.or Rs.24,00,000/-p.a.in gregate: NIL

8. Previous years figures have been regrouped and reclassified wherever necessary in order to be in confirmity with current years presentation.

9. As the company has brought forward taxable losses, no provision for tax has been made. Taking into account the consideration of prudence, no asset or liability is anticipated on account of Deferred tax.

10. The Company has taken a Ginning unit on lease basis with effect from 29.08.2008, the operating results were incoporated in the accounts.

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Mar 31, 2012

1. Company has not appointed company secretary in terms of section 383 A of theompanies Act of 1956.

2. SundryCreditors,Debtors,Deposits,Loans-and advances are subject to confirmation

3. Sundry creditors due to small scale and ancillary undertakings could not be ascertained due to lack of information.

4. Quantitative particulars (As required under part-ll of schedule VI of the necessary Act of 1956) as per Annexur-A.

5. Expenditure incurred in foreign currency- Rs. NIL 29. C I F Value of imports of raw material RsNIL.

6. No of employees drawing remuneration more than Rs.2,00,000/- p.m.or Rs.24,00,000/-p.a.in gregate :NIL

7. Previous years figures have been regrouped and reclassified wherever necessary in order to be in confirmity with current years presentation.

8. As the company has brought forward taxable losses, no provision for tax has been made. Taking into account the consideration of prudence, no asset or liability is anticipated on account of Deferred tax.

9. The Company has taken a Ginning unit on lease basis with effect from 29.08.2008, the operating results were incoporated in the accounts.

OTHER DISCLOSURES:

1. Segments have been identified in line with the accounting standard 17 "Segment reporting" taking into account the organisation structure as well as the differing risks & returns.

2. Company has disclosed business segment as the primary segment.

4. The segment revenue results, asssets & liabilities include the respective amounts identifiable to each of the segments and amount located on reasonable basis.

5. The accounting policies of the segments are the same as those described in the segnificant accounting policy as reffered in schedule 18 to the accounts.

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Mar 31, 2010

1. RETIREMENT BENEFITS :

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

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

2. Company has not appointed company secretary in terms of section 383 A of the companies Act of 1956.

3. Sundry Creditors, Debtors, Deposits, Loans-and advances are subject to confirmation

4. Quantitative particulars (As required under part-ll of schedule VI of the necessary Act of 1956) as per Annexur-A.

5. Expenditure incurred in foreign currency- Rs. NIL

6. - C I F Value of imports of raw material Rs NIL

7. No of employees drawing remuneration more than Rs.2,00,000/- p.m.or Rs.24,00,000/- p.a.in gregate :NIL

8. Previous years figures have been regrouped and reclassified wherever necessary in order to be in confirmity with current years presentation.

9. As the company has brought forward taxable

losses, no provision for tax has been made. Taking into account the consideration of prudence, no asset or liability is anticipated on account of Deferred tax.

10. The Company has taken a Ginning unit on lease basis with effect from 29.08.2008, the operating results were incoporated in the accounts

11. Related party disclosures

Related party disclosures as required by AS18" Related party disclosures " are given below (I) Relationships

Related Party Relationship

K.V.Prabhakar Managing Director (Executive Director)

Smt. Vijaya Prabhakar Executive Director

Rama Murthy Non Executive Director

Eshwar Patii Executive Director Vishwanath.K.Mamini Non Executive Director

T. Chandrashekara Non Executive Director K.V.Prabhakar(H.U.F) Enterprises in which Key Management

Personnel/relatives is/are interested

Sri Jaya Infotech Services (P) Ltd., -do-

The Union Theaters (P) Ltd., -do-

The Margarine Refined & Co., Ltd., -do-

The Murugarajendra Oil Industries P Ltd -do-

Sree Vijayalakshmi Oil Mills -do-

SreeAnjaneya Cotton Mills (P) Ltd., -do-

Sree Ganesar Textiles -do-

Vijayalakshmi Cotton Enterprises -do-

Sree Srinivasa Industries -do-

City Fort Finvest Ltd., i -do-

Vakratunda Agritech Pvt Ltd -do-