Accounting Policies of Pagaria Energy Ltd. Company

Mar 31, 2025

1. Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies Act, 2013. The financial statements have
also been prepared in accordance with the relevant presentation requirements of the Companies
Act, 2013. The Company adopted Ind AS from 1st April, 2017.

2. Basis for Preparation

The financial statements are prepared in accordance with the historical cost convention, except
for certain items that are measured at fair values, as explained in the accounting policies.

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, regardless of whether
that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Company takes into account the characteristics of the
asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date. Fair value for measurement and / or disclosure
purposes in these financial statements is determined on such a basis, except for share-based
payment transactions that are within the scope of Ind AS 102 - Share-based Payment, leasing
transactions that are within the scope of Ind AS 17 - Leases, and measurements that have some
similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 -
Inventories or value in use in Ind AS 36 - Impairment of Assets.

The preparation of financial statements in conformity withInd AS requires management to make
judgements, estimates and assumptions that affect the application of the accounting policies and
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of revenues and expenses
during the year. Actual results could differ from those estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period;
they are recognised in the period of the revision and future periods if the revision affects both
current and future periods.

3. Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013
and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the
time between the acquisition of assets for processing and their realisation in cash and cash
equivalents.

4. Property Plant and Equipment - Tangible Assets Pagaria Energy Limited

Property, plant and equipment are stated at cost of acquisition or cotf^riuCfiOWftyS \&&5)

depreciation and impairment, if any. For this purpose, cost includes deemed cost which
represents the carrying value of property, plant and equipment recognised as at 1st April, 2016
measured as per the previous GAAP.

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to
acquisition. In respect of major projects involving construction, related pre-operational expenses
form part of the value of assets capitalised. Expenses capitalised also include applicable
borrowing costs for qualifying assets, if any. All upgradation / enhancements are charged off as
revenue expenditure unless they bring similar significant additional benefits.

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of asset. Any gain or loss arising
on the disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying amount of the asset and is recognised
in the Statement of Profit and Loss

Depreciation of these assets commences when the assets are ready for their intended use which
is generally on commissioning. Items of property, plant and equipment are depreciated in a
manner that amortizes the cost (or other amount substituted for cost) of the assets after
commissioning, less its residual value, over their useful lives as specified in Schedule II of the
Companies Act, 2013 on a straight line basis. Land is not depreciated.

The estimated useful life of property, plant and equipment of the Company are as follows :

1) Furniture & Fixture - 10 Years

2) Office Equipments - 5 Years

3) Computer & Accessories - 3 Years

Assets held under finance leases are depreciated over their expected useful lives on the same
basis as owned assets or, where shorter, the term of the relevant lease
Property, plant and equipment’s residual values and useful lives are reviewed at each Balance
Sheet date and changes, if any, are treated as changes in accounting estimate.

5 Inventories

Inventories are stated at lower of cost and net realisable value. The cost is calculated on First in
First out method. Cost comprises expenditure incurred in the normal course of business in
bringing such inventories to its present location and condition and includes, where applicable,
appropriate overheads based on normal level of activity. Net realisable value is the estimated
selling price less estimated costs for completion and sale.

Obsolete, slow moving and defective inventories are identified from time to time and, where
necessary, a provision is made for such inventories.

6. Foreign Currency Transactions

The functional and presentation currency of the Company is Indian Rupee.

Transactions in foreign currency are accounted for at the exchange rate prevailing on the
transaction date. Gains/ losses arising on settlement as also on translation of monetary items
are recognised in the Statement of Profit and Loss.

Exchange differences arising on monetary items that, in substance, form part of the Company’s
net investment in a foreign operation (having a functional currency other than Indian Rupee) are
accumulated in Foreign Currency Translation Reserve.

7. Financial Instruments 34 Annual Report (2024-2 5)

(I) Financial Assets

(A) Initial Recognition and Measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value
through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial
assets are recognised using trade date accounting, i.e., the date when the Company commits to purchase
or sell the asset.

(B) Subsequent Measurement

i) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at fair value through other comprehensive income if it is held within a

business model whose objective is achieved by both collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at fair valued through
profit or loss.

iv) Investment in Associates

The Company has accounted for its investments in associates at cost.

v) Equity Instruments

All equity investments are measured at fair value, with value changes recognised in statement of profit and
loss, except for those equity investments for which the company has elected to present the value changes
in ‘Other Comprehensive Income’

vi) Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating

impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to :

(1) The 12-months expected credit losses (expected credit losses that result from those default events on

the financial instrument that are possible within 12 months after the reporting date); or

(2) Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument)

For trade receivables company applies ‘simplified approach’ which requires expected lifetime losses to be
recognised from initial recognition of the receivables. Further the company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(II) Finanncial Liabilities

(A) Initial Recognition and Measurement

All financial liabilities are recognized initially at fair value and in case of loans net of directly attributable
cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

(B) Subsequent Measurement ³⁴ Annual Keport (202^-²⁵⁾

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.

(III) Derecognition of Financial Instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under
Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the company’s balance
sheet when the obligation specified in the contract is discharged or cancelled or expires.

(IV) Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously.

8. Equity Instruments

Equity instruments are recognised at the value of the proceeds, net of direct costs of the capital issue.
i. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable for goods supplied and
services rendered, net of returns and discounts to customers

(I) Revenue from sale of goods

Revenue from the sale of goods includes excise and other duties which the Company pays as a principal
but excludes amounts collected on behalf of third parties, such as sales tax and value added tax.

Revenue from the sale of goods is recognised when significant risks and rewards of ownership have been
transferred to the customer, which is mainly upon delivery, the amount of revenue can be measured
reliably and recovery of the consideration is probable.

(II) Revenue from sale of service

Revenue from rendering of services is recognised when the performance of agreed contractual task has
been completed. Revenue is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment and excluding taxes or duties collected on behalf of
the government.

(III) Interest Income

Interest income Interest income from a financial asset is recognised using effective interest rate method.

(IV) Dividend Income

Revenue is recognised when the Company’s right to receive the payment has been established.

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Mar 31, 2024

1. Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies Act, 2013. The financial statements have
also been prepared in accordance with the relevant presentation requirements of the Companies
Act, 2013. The Company adopted Ind AS from 1st April, 2017.

2. Basis for Preparation

The financial statements are prepared in accordance with the historical cost convention, except
for certain items that are measured at fair values, as explained in the accounting policies.

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, regardless of whether
that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Company takes into account the characteristics of the
asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date. Fair value for measurement and / or disclosure
purposes in these financial statements is determined on such a basis, except for share-based
payment transactions that are within the scope of Ind AS 102 - Share-based Payment, leasing
transactions that are within the scope of Ind AS 17 - Leases, and measurements that have some
similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 -
Inventories or value in use in Ind AS 36 - Impairment of Assets.

The preparation of financial statements in conformity withInd AS requires management to make
judgements, estimates and assumptions that affect the application of the accounting policies and
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities
at the date of the financial statements, and the reported amounts of revenues and expenses
during the year. Actual results could differ from those estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period;
they are recognised in the period of the revision and future periods if the revision affects both
current and future periods.

3. Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013
and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the
time between the acquisition of assets for processing and their realisation in cash and cash
equivalents.

4. Property Plant and Equipment - Tangible Assets

Property, plant and equipment are stated at cost of acquisition or construction less accumulated
depreciation and impairment, if any. For this purpose, cost includes deemed cost which
represents the carrying value of property, plant and equipment recognised as at 1st April, 2016
measured as per the previous GAAP.

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to
acquisition. In respect of major projects involving construction, related pre-operational expenses
form part of the value of assets capitalised. Expenses capitalised also include applicable
borrowing costs for qualifying assets, if any. All upgradation / enhancements are charged off as
revenue expenditure unless they bring similar significant additional benefits.

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of asset. Any gain or loss arising
on the disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying amount of the asset and is recognised
in the Statement of Profit and Loss

Depreciation of these assets commences when the assets are ready for their intended use which
is generally on commissioning. Items of property, plant and equipment are depreciated in a
manner that amortizes the cost (or other amount substituted for cost) of the assets after
commissioning, less its residual value, over their useful lives as specified in Schedule II of the
Companies Act, 2013 on a straight line basis. Land is not depreciated.

The estimated useful life of property, plant and equipment of the Company are as follows :

1) Furniture & Fixture - 10 Years

2) Office Equipments - 5 Years

3) Computer & Accessories - 3 Years

Assets held under finance leases are depreciated over their expected useful lives on the same
basis as owned assets or, where shorter, the term of the relevant lease

Property, plant and equipment’s residual values and useful lives are reviewed at each Balance
Sheet date and changes, if any, are treated as changes in accounting estimate.

5 Inventories

Inventories are stated at lower of cost and net realisable value. The cost is calculated on First in
First out method. Cost comprises expenditure incurred in the normal course of business in
bringing such inventories to its present location and condition and includes, where applicable,
appropriate overheads based on normal level of activity. Net realisable value is the estimated
selling price less estimated costs for completion and sale.

Obsolete, slow moving and defective inventories are identified from time to time and, where
necessary, a provision is made for such inventories.

6. Foreign Currency Transactions

The functional and presentation currency of the Company is Indian Rupee.

Transactions in foreign currency are accounted for at the exchange rate prevailing on the
transaction date. Gains/ losses arising on settlement as also on translation of monetary items
are recognised in the Statement of Profit and Loss.

Exchange differences arising on monetary items that, in substance, form part of the Company’s
net investment in a foreign operation (having a functional currency other than Indian Rupee) are
accumulated in Foreign Currency Translation Reserve.

7. Financial Instruments

(I) Financial Assets

(A) Initial Recognition and Measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value
through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial
assets are recognised using trade date accounting, i.e., the date when the Company commits to purchase
or sell the asset.

(B) Subsequent Measurement

i) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at fair value through other comprehensive income if it is held within a

business model whose objective is achieved by both collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at fair valued through
profit or loss.

iv) Investment in Associates

The Company has accounted for its investments in associates at cost.

v) Equity Instruments

All equity investments are measured at fair value, with value changes recognised in statement of profit and
loss, except for those equity investments for which the company has elected to present the value changes
in ‘Other Comprehensive Income’

vi) Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to :

(1) The 12-months expected credit losses (expected credit losses that result from those default events on

the financial instrument that are possible within 12 months after the reporting date); or

(2) Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument)

For trade receivables company applies ‘simplified approach’ which requires expected lifetime losses to be
recognised from initial recognition of the receivables. Further the company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(II) Finanncial Liabilities

(A) Initial Recognition and Measurement

All financial liabilities are recognized initially at fair value and in case of loans net of directly attributable
cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

(B) Subsequent Measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.

(III) Derecognition of Financial Instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under
Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the company''s balance
sheet when the obligation specified in the contract is discharged or cancelled or expires.

(IV) Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously.

8. Equity Instruments

Equity instruments are recognised at the value of the proceeds, net of direct costs of the capital issue.

9. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable for goods supplied and
services rendered, net of returns and discounts to customers

(I) Revenue from sale of goods

Revenue from the sale of goods includes excise and other duties which the Company pays as a principal
but excludes amounts collected on behalf of third parties, such as sales tax and value added tax.

Revenue from the sale of goods is recognised when significant risks and rewards of ownership have been
transferred to the customer, which is mainly upon delivery, the amount of revenue can be measured
reliably and recovery of the consideration is probable.

(II) Revenue from sale of service

Revenue from rendering of services is recognised when the performance of agreed contractual task has
been completed. Revenue is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment and excluding taxes or duties collected on behalf of
the government.

(III) Interest Income

Interest income Interest income from a financial asset is recognised using effective interest rate method.

(IV) Dividend Income

Revenue is recognised when the Company''s right to receive the payment has been established.

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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