Notes to Accounts of Golden Carpets Ltd.

Mar 31, 2024

24.1.13 Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes provisions when a present obligation (legal or
constructive) as a result of a past event exists and it is probable that an outflow of
resources embodying economic benefits will be required to settle such obligation
and the amount of such obligation can be reliably estimated. If the effect of time
value of money is material, provisions are discounted using a current pre-tax 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 recognized as a
finance cost. A disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not require an outflow

of resources embodying economic benefits or the amount of such obligation
cannot be measured reliably. When there is a possible obligation or a present
obligation in respect of which likelihood of outflow of resources embodying
economic benefits is remote, no provision or disclosure is made. Contingent
assets are not recognised but disclosed where an inflow of economic benefits is
probable.

24.1.14 Intangible Assets

The Company identifies an identifiable non-monetary asset without physical
substance as an intangible asset. The Company recognises an intangible asset if it
is probable that expected future economic benefits attributable to the asset will flow
to the entity and the cost of the asset can be measured reliably. An intangible asset
is initially measured at cost unless acquired in a business combination in which
case an intangible asset is measured at its fair value on the date of acquisition. The
Company identifies research phase and development phase of an internally
generated intangible asset. Expenditure incurred on research phase is recognised
as an expense in the profit or loss for the period in which incurred. Expenditure on
development phase are capitalised only when the Company is able to demonstrate
the technical feasibility of completing the intangible asset, the ability to use the
intangible asset and the development expenditure can be measured reliably. The
Company subsequently measures all intangible assets at cost less accumulated
amortisation less accumulated impairment. An intangible asset is amortised on a
straight-line basis over its useful life. Amortisation commences when the asset is in
the location and condition necessary for it to be capable of operating in the manner
intended by management. Amortisation ceases at the earlier of the date that the
asset is classified as held for sale (or included in a disposal group that is classified
as held for sale) and the date that the asset is derecognised. The amortisation
charge for each period is recognised in profit or loss unless the charge is a part of
the cost of another asset. The amortisation period and method are reviewed at
each financial year end. Any change in the period or method is accounted for as a
change in accounting estimate prospectively. The Company derecognises an
intangible asset on its disposal or when no future economic benefits are expected
from its use or disposal and any gain or loss on derecognition is recognised in profit
or loss as gain / loss on derecognition of asset.

24.1.14. a Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying
value of all of its property, plant and equipment recognised as at the beginning of
1st April, 2020 (transition date) measured as per the previous GAAP and use that
carrying value as the deemed cost of property, plant and equipment.

24.1.15 Income Taxes

Income tax expense represents the sum of tax currently payable and deferred tax.
Tax is recognised in profit or loss except to the extent that it relates to items
recognised directly in equity or in other comprehensive income.

24.1.15. a Current Tax

Current Tax includes provision for income tax computed at the tax rate applicable
as per Income Tax Act, 1961. Tax on profit for the period is determined on the basis
of estimated taxable income and tax credits computed in accordance with the
provision of the relevant tax laws and based on expected outcome of assessments
/ appeals.

24.1.15. b Deferred Tax

Deferred tax is recognised on temporary differences between the carrying
amounts of assets and liabilities in the balance sheet and the corresponding tax
bases used in the computation of taxable profit. Deferred tax liabilities are
recognised for all taxable temporary differences. Deferred tax assets are
recognised for all deductible temporary differences, unabsorbed losses and tax
credits to the extent that it is probable that future taxable profits will be available
against which those deductible temporary differences, unabsorbed losses and tax
credits will be utilised. The carrying amount of deferred tax assets is reviewed at
the end of financial year and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be
recovered. Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the period in which the liability is expected to be settled or the
asset realised, based on tax rates and tax laws that have been substantively
enacted by the balance sheet date. Deferred tax assets and liabilities are offset
when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a
net basis.

24.1.16 Assets Held for Sale

The Company classifies assets as held for sale if their carrying amounts will be
recovered principally through a sale rather than through continuing use of the
assets and actions required to complete such sale indicate that it is unlikely that
significant changes to the plan to sell will be made or that the decision to sell will be
withdrawn. Also, such assets are classified as held for sale only if the management
expects to complete the sale within one year from the date of classification. Assets
classified as held for sale are measured at the lower of their carrying amount and
the fair value less cost to sell. Non- current assets are not depreciated or
amortized.

24.1.17 Fair Value Measurement

The Company measures financial instruments at fair value in accordance with the
accounting policies mentioned above. Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

• In the principal market for asset or liability, or

• In the absence of a principal market, in the most advantageous market for asset or
liability.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy that categorizes into
three levels, described as follows, the inputs to valuation techniques used to
measure value. The fair value hierarchy gives the highest priority to quoted prices
in active markets for identical assets or liabilities (Level 1 inputs) and the lowest
priority to unobservable inputs (Level 3 inputs).

Level 1 — quoted market prices in active markets for identical assets or liabilities

Level 2 — inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly

Level 3 — inputs that are unobservable for the asset or liability

For assets and liabilities that are recognized in the financial statements at fair value
on a recurring basis, the Company determines whether transfers have occurred
between levels in the hierarchy by re- assessing categorization at the end of each
reporting period and discloses the same.

24.1.19 Dividend

The Company recognises a liability for dividends to equity holders of the Company
when the dividend is approved by the shareholders. A corresponding amount is
recognised directly in equity.

24.1.20 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or less from the
date of acquisition), which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist
of cash and short-term deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the Company''s cash
management.

24.1.21 Statement of Cash flows

Cash flows are reported using the indirect method, whereby profit / (loss) before tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are segregated based
on the available information.

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Mar 31, 2014

1. Contingent Liabilities and commitments - (AS-29):

i) Guarantees and letters of credit: Nil

ii) Bank Guarantees: Rs. Nil

2. Other Disclosures:-

a) The Previous year''s figures have been regrouped and recast wherever necessary to bring them in line with the current year''s figures.

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Mar 31, 2013

1. The value of Inventory is considered based on the valuation made by the Management

2. Sundry Debtors, Sundry Creditors and Advances are subject to the confirmation from the respective parties.

3. Sales Income includes trading of goods, which excludes duties and taxes. The sales are recognized only in the basis of goods dispatched and invoices raised.

4. Deferred Tax Liability has been reviewed and necessary adjustments made, during the current financial year and deferred Tax asset/liability was considered as per the provisions of AS-22.

5. There were no dues repayable to small/medium scale industries for the year ending 31.03.2013.

6. Details of sales, raw materials and components consumed capacities and production.

7. Figures have been rounded off to nearest rupee.

8. Schedule 1 to 14 form an integral part of the Balance Sheet and have been duly authenticated.

9. Figures of previous year have been regrouped wherever necessary to conform to the current year''s presentation/classification.

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Mar 31, 2012

1. The value of Inventory is considered based on the valuation made by the Management.

2. Sundry Debtors, Sundry Creditors and Advances are subject to the confirmation from the respective parties.

3. Sales Income includes trading of goods, which excludes duties and taxes. The sales are recognized only in the basis of goods dispatched and invoices raised.

4. Deferred Tax Liability has been reviewed and necessary adjustments made, during the current financial year and deferred Tax asset/liability was considered as per the provisions of AS-22.

5. There were no dues repayable to small/medium scale industries for the year ending 31.03.2012.

6. Details of sales, raw materials and components consumed capacities and production.

7. Figures have been rounded off to nearest rupee.

8. Schedule 1 to 14 form an integral part of the Balance Sheet and have been duly authenticated.

9. Figures of previous year have been regrouped wherever necessary to conform to the current year's presentation/classification.

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Mar 31, 2010

1. The value of Inventory is considered based on the valuation made by the Management.

2. Sundry Debtors, Sundry Creditors and Advances are subject to the confirmation from the respective parties.

3. Sundry Debtors include Rs.l 5,73,196 /- include of Rs. 15,27,596/- which are more than six months and in the opinion of the management the debts are considered good and hence no provision for doubtful debts is made.

4. Other liabilities under the head Current Liabilities include an amount of Rs. 67,59,307/- due to the Directors & Promoters on which no interest is provided.

5. The liability for Expenses consists of provisions of Rs. 2,91,968/- made for the expenses etc. payable as on 31.03.2010.

6. Sales Income includes trading of goods, which excludes duties and taxes. The sales are recognized only in the basis of goods dispatched and invoices raised.

7. Deferred Tax Liability has been reviewed and necessary adjustments made, during the current financial year and deferred Tax asset/liability was considered as per the provisions of AS-22.

8. There was no dues repayable to small/medium scale industries for the year ending 31.03.2010.

9. Figures have been rounded off to nearest rupee.

10. Schedules 1 to 14 form an integral part of the Balance Sheet and have been duly authenticated.

11. Figures of previous year have been regrouped wherever necessary to conform to the current years presentation/classification.