Accounting Policies of Pagaria Energy Ltd. Company

Mar 31, 2014

1. Accounting System

(a) Financial statements are prepared in accordance with the generally accepted accounting principles including mandatory applicable accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006 and relevant presentational requirement/provisions of the Companies Act 1956, under historical cost convention, on accrual basis and ongoing concern concept, unless otherwise stated. The Accounting policies adopted during the current, in the preparation of these financial statements, are consistent with that of the previous.

(b) All Expenses, Revenue from Operations and Other Income are accounted for on Accrual basis.

(c) Dividend Income and Interest on Bank FDR''s is accounted for as and when received.

2. Use of Estimates:

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.

3. Tangible Fixed Assets and Depreciation on Tangible Fixed Assets

(a) Fixed Assets are stated at cost less accumulated depreciation and impairment in value, if any.

(b) Costs comprise acquisition price or construction cost and other attributable costs, if any for bringing the assets to its intended use.

(c) Depreciation on Fixed Assets is provided on Straight Line Method on pro-rata basis as per rates prescribed in Schedule XIV to the Companies Act, 1956.

4. Investments

(a) Investments that are intended to be held for more than a year, from the date of acquisition are classified as Long Term Investments.

(b) Long Term Investments are valued at Cost.

(c) Provision for diminution in the value of Long Term Investments is made only if such a decline is, in the opinion of management, other than temporary.

(d) Current Investments are carried at lower of cost or fair value, whichever is lower.

5. Provision for Current and Deferred Tax

a. Tax expense comprises Current tax and Deferred tax.

b. Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961, after considering allowances and exemptions.

c. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet, if there is convincing evidence that the company will pay normal tax in future and the resultant asset can be measured reliably.

d. Deferred tax resulting from "timing difference" between taxable and accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent years , is accounted for using the the tax rates and laws that are enacted or substantively enacted as enacted as on the balance sheet date.

e. Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

6. Retirement Benefits

During the year under review, none of the employees have completed Continuous service

period of 5 years and there is not any un-availed leave of any employees working with the

Company. Accordingly, no provision is required to be made in respect of Gratuity, Leave

encashment and Other Retirement benefits.

7. Impairment of Assets

a. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

b. An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

c. In the opinion of the management, there is no impairment of assets as on Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent Assets

a. Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

b. In the opinion of the management, there are no contingent liabilities as on Balance Sheet date and nor any events occurred after the Balance Sheet date that affects the financial position of the Company.

9. During the financial year 2013-14 there are not any transactions with suppliers/ parties who are covered under "The Micro Small and Medium Enterprise Development Act, 2006.

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Mar 31, 2013

1. Accounting System:

a) Financial statements are prepared in accordance with the generally accepted accounting principles including mandatory applicable accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006 and relevant presentational requirement /provisions of the Companies Act 1956, under historical cost convention, on accrual basis and ongoing concern concept, unless otherwise stated. The Accounting policies adopted during the current year, in the preparation of these financial statements, are consistent with that of the previous year.

b) All Expenses, Revenue from Operations and Other Income are accounted for on Accrual basis. (c) Dividend Income and Interest on Bank FDR''s is accounted for as and when received.

2. Use of Estimates:

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.

3. Tangible Fixed Assets and Depreciation on Tangible Fixed Assets:

(a) Fixed Assets are stated at cost less accumulated depreciation and impairment in value, if any.

(b) Costs comprise acquisition price or construction cost and other attributable costs, if any for bringing the assets to its intended use.

(c) Depreciation on Fixed Assets is provided on Straight Line Method on pro-rata basis as per rates prescribed in Schedule XIV to the Companies Act, 1956.

4. Investments:

(a) Investments that are intended to be held for more than a year, from the date of acquisition are classified as Long Term Investments.

(b) Long Term Investments are valued at Cost.

(c) Provision for diminution in the value of Long Term Investments is made only if such a decline is, in the opinion of management, other than temporary.

(d) Current Investments are carried at lower of cost or fair value, which ever is lower.

5. Provision for Current and Deferred Tax::

Tax expense comprises Current tax and Deferred tax.

a) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961, after considering allowances and exemptions.

b) Minimum alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance sheet, if there is convincing evidence that the company will pay normal tax in future and the resultant asset can be measured reliably.

c) Deferred tax resulting from "timing difference" between taxable and accounting income for the reporting year that originate in one year and are capable of reversal in one or more subsequent years, is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

d) Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

6. Retirement Benefits:

During the year under review, none of the employees have completed Continuous service period of 5 years and there is not any un-availed leave of any employees working with the Company. Accordingly, no provision is required to be made in respect of Gratuity, Leave encashment and Other Retirement benefits.

7. Impairment of assets:

(a) An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

(b) An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

(c) In the opinion of the management, there is no impairment of assets as on Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent Assets:

(a) Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

1. Accounting System:

(a) The Financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India.The Company have prepared these financial statements to comply in all material aspects with the Accounting Standards and relevant provisions of the Companies Act 1956.The Financial Statement have been prepared under the historical cost convention, on an accrual basis and ongoing concern concept, unless otherwise stated.

(b) All Expenses, Revenue from Operations and Other Income are accounted for on Accrual basis.

(c) Dividend Income and Interest on Bank FDR's is accounted for on Cash Basis.

2. Use of Estimates:

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.

3. Tangible Fixed Assets and Depreciation on Tangible Fixed Assets:

(a) Fixed Assets are stated at cost less accumulated depreciation and impairment in value, if any.

(b) Costs comprise acquisition price or construction cost and other attributable costs, if any for bringing the assets to its intended use.

(c) Depreciation on Fixed Assets is provided on Straight Line Method on pro-rata basis as per rates prescribed in Schedule XIV to the Companies Act, 1956.

4. Investments:

(a) Investments that are intended to be held for more than a year, from the date of acquisition are classified as Long Term Investments.

(b) Long Term Investments are valued at Cost.

(c) Provision for diminution in the value of Long Term Investments is made only if such a decline is, in the opinion of management, other than temporary.

(d) Current Investments are carried at lower of cost or fair value, which ever is lower.

5. Provision for Current and Deferred Tax:

Tax expense comprises current tax and deferred tax.

(a) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961.

(b) Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

(c) Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

6. Retirement Benefits:

During the year under review, none of the employees have completed Continuous service period of 5 years and there is not any un-availed leave of any employees working with the Company. Accordingly, no provision is required to be made in respect of Gratuity, Leave encashment and Other Retirement benefits.

7. Impairment of assets:

(a) An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets.

(b) An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

(c) In the opinion of the management, there is no impairment of assets as on Balance Sheet date.

8. Provisions, Contingent Liabilities and Contingent Assets:

(a) Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

(b) In the opinion of the management, there are no contingent liabilities as on Balance Sheet date and nor any events occurred after the Balance Sheet date that affects the financial position of the Company.

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Mar 31, 2010

(a) Accounting Convention;

The accounts have been prepared under historical cost concention on the basis of a going concern. with revenue recognition and expenses accounted on their actutal including provision/adjustment of commited obligation and amount determined an payable during the year.

(b) Fixed Assets & Depreciation:

Fixed assets are valued at cost less accumulated depreciation,

Depreciation on fixed assets has been charged on straight-line method as per Schedule XIV of the Companies Act. 1956. During the year no new assets has been acquired.

(c) Valuation of Inventory:

The valuation of inventories of software and other traded material is stated at cost or market price whichever is lower.

(d) Investments;

Investment has been stated at cost price

(e) Deferred taxation:

Deferred tax is recognised, on timing differenced being the difference resulting Irani the recognition of items in the financial statements and in estimating its current income tax provision.

(f) Prior period Adjustment:

Adjustments of identifiable items of income and expend inure pertaining to the prior period are accounted through"prior period adjustments accoun".

(g) Amortisation of expenses:

(i) Preliminary and public issue expenses are amortised equally over a period of 10 years.

(ii) Deferred revenue expenditure in respect to increment in authorised share.- capital will be amortised equally over a period of 5 years.

(iii)Defered revenue expenditure in respect of portal will be amortised over a period of 10 years in equal instatments. The deferred revenue expenses consists uf total amount of expenses i.e. direct and indirect, either of capital or revenue nature pertaonting to the c-commerce portal