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Accounting Policies of ACE Edutrend Ltd. Company

Mar 31, 2014

(a) BASIS OF PREPARATION

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956, (the "Act") and the relevant provisions thereof which continue to be applicable in respect of Section 133 of Companies Act, 2013 in terms of General Circular 15/2013 dated September 13,2013 of the Ministry of Corporate Affairs.

(b) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition less depreciation and impairment loss, if any. Direct costs are capitalized until assets are ready to be put to use.

(c) DEPRECIATION

Depreciation on Fixed Assets is provided under written Down Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-Rata Basis.

(d) REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate realization/ collection.

i. Training Income-income is recognized on Accrual Basis.

ii. Other Income- Other Income is accounted for on accrual basis.

(e) CONTINGENT LIABILITIES

These are disclosed by way of notes on the Balance Sheet. Provisions is made in the Accounts in respect of those liabilities which are likely to materialize after the year end till the finalization of accounts and material effect on the position stated in the Balance Sheet.

(f) INCOME TAX

Taxation is accounted on the basis of the "liability Method" which is generally followed in India. Provision is made for Income Tax based on computation after considering rebates, relief and exemption under the Income Tax Act, 1961.

In accordance with the requirements of Accounting Standard 22 i.e."Accounting for taxes on income" issued by "The Institute of Chartered Accountants of India", the total deferred tax liabilities/asset as on 31.03.2013 have been recognized in the following manner:

PARTICULARS 31-03-2014

DEPRECIATION AS PER COMPANY LAW 26768086.00

DEPRECIATION ALLOWABLE AS PER INCOME TAX ACT 29433409.00

DIFFERENCE 2665323.00

TAX RATE (32.45%) 864764.00

(g) PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a 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 statement.

(h) SEGMENT INFORMATION

The Company is engaged in the business of recreation activities, which constitutes a single business segment and accordingly, disclosures are not required underAS-17, issued by "The Institute of Chartered Accountants of India".


Mar 31, 2010

(a) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost.

(b) DEPRECIATION

Depreciation on fixed assets is provided on straight line method in accordance with Section 205(2)(b) of the Companies Act, 1956, as per the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on leasehold assets is not provided in view of discontinuation of leasehold business. Albums are amortized over the estimated useful life of the assets i.e., 10 years, on pro rata basis.

(c) INVESTMENTS

Investments are stated at cost of acquisition and all the investments are in the name of the company.

(d) REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate realization/ collection.

i) , Sales - Domestic sales are recognized on dispatch/ on delivery of books/ software/ Music Cassettes/ CDs from sales office.

ii) Films - income will be recognized on its completion/ release and sale of rights thereof.

iii) Other Income - Other Income is accounted for on accrual basis.

(e) CONTINGENT LIABILITIES

These are disclosed by way of notes on the Balance Sheet. Provisions is made in the Accounts in respect of those liabilities which are likely to materialize after the year end till the finalization of accounts and material effect on the position stated in the Balance Sheet.

 
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