Home  »  Company  »  CORE Education & Tec  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of CORE Education & Technologies Ltd. Company

Mar 31, 2015

(i) Basis of Preparation of Financial Accounts

These financial statements have been prepared under the historical cost convention, on accrual basis and are in accordance with the generally accepted accounting principles (GAAP) in India, the provisions of the Companies Act, 2013 and the Accounting Standards as specified in the Companies (Accounts) Rules, 2014.

(ii) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statement and reported amounts of income and expenses during the period. Any revision to accounting estimates and or difference, if any, between the actual results and estimates is recognized in the period in which the results are known.

(iii) Tangible Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their present working condition. Capital Work-in-Progress represents cost of fixed assets that are not yet ready for their intended use as at the Balance sheet date.

(iv) Intangible Assets

Intellectual Property Rights (IPR) and software Licenses which have been separately paid for and put to use are shown under "Fixed Assets" in the Balance Sheet.

Expenses incurred for software product development are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. Such expenses for acquiring intellectual property rights & licenses for projects under development on balance sheet date are shown under Capital Work-in-Process.

(v) Depreciation

Depreciation on fixed assets is provided on the basis of useful lives as per Part C of Schedule II to the Companies Act, 2013, except depreciation on assets used in BOOT projects which are depreciated equally over the period of respective projects, depreciation on foreign branch assets has been provided at the rates followed under the relevant law of the foreign country which are: Computers 5%; Furniture & Fixture 5% and Computer Software are amortized over 5 years.

(vi) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if any is charged to the Profit and Loss Account 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 a change in the estimate of recoverable amount.

(vii) Leases

(a) Lease arrangement, where the risks and rewards incidental to ownership of an asset substantially vests with the lesser, are recognized as operating leases. Lease payments under operating lease are recognized as an expense in the profit & loss account. Operating lease rentals are expensed with reference to lease term and other considerations.

(b) The lower of the fair value of the assets and present fair value of the minimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to profit and loss account.

(viii) Foreign Currency Transactions

a) Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transactions.

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

c) Non-monetary foreign currency items are carried at cost.

d) In respect of foreign operations, which are non-integral operations, all assets and liabilities, both monetary and non-monetary, are translated at closing rate, while all income and expenses are translated at average exchange rate for the year. The resulting exchange differences are accumulated in the 'Foreign Currency Translation Reserve'.

e) Any income or expense on account of exchange difference either on settlement translation or restatement, is recognized in the profit and loss account.

(ix) Investments

Current investments are carried at the lower of the cost and fair market value.

Long-term investments are stated at cost. Cost includes costs incidental to acquisition such as legal costs, investment banking fees etc. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(x) Inventories

The portion of the Software development contracts which has remained unbilled, though partly completed is inventoried as "Software Development - Work-in-Process."

The aggregate of 'Software Development' income and the inventories viz. "Software Development - Work-in-Process" is restricted to the contract value or the net realizable value of the work completed or the cost, whichever is less. For this purpose, manpower cost of the software development team and other directly attributable costs are considered for valuation.

(xi) Revenue Recognition

Our revenues for software development, both domestic and international, are generated primarily on fixed time frame and time and material basis. Revenue from software services under fixed-price contracts is recognized to the extent of billings due on achievement of milestones specified in the agreement. The expenditure incurred on unbilled services are inventoried. On time-and-materials contracts, revenue is recognized as the related services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license. Revenue from ICT contracts which are on BOOT/ BOO basis are recognized equally over the contract period post implementation of contract.

Revenues in case of hardware and software trading are recognized as and when these are delivered.

(xii) Employee Benefits

a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

b) In respect of Indian operations of the Company, post- employment and other long-term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

c) In respect of employee stock options, the intrinsic value of the options, i.e. the excess of market price of the underlying share on the date of the grant over the exercise price of the option is accounted as deferred employee compensation cost to be amortized over the vesting period.

(xiii) Borrowing Cost

Borrowing costs that are specifically attributable to the acquisition or construction of qualifying asset are capitalized as part of the cost of such asset till such time as the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires/takes a substantial period of time to get ready for its intended use. All other borrowing costs, i.e. not specifically attributable to the qualifying asset are charged to revenue in the period in which those are incurred.

(xiv) Taxes on Income

Current Income Tax comprises of taxes on income from operations in India and in foreign jurisdictions. Income tax liability in India is determined and provided in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between taxable income and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

(xv) Provisions, Contingent Liabilities and 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 statements.

(xvi) Derivative Contracts

In respect of derivative contracts, premium paid, gain/loss on settlement and provision for losses on restatement are recognized along with the underlying transactions and charged to Statement of Profit and Loss.

(xvii) Research and Development Costs

(a) Research costs are expensed as incurred.

(b) Development costs including costs paid to third parties for technical knowhow, content etc. for software/content development are expensed as incurred, unless the technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software/content and the costs can be measured reliably. Costs of such projects upon completion are classified as Intellectual property rights under intangible assets and amortized. Costs of such projects under development on balance sheet date are shown under Intangible assets under development.

(c) Research and development expenditure of a capital nature is included in the fixed assets.

(d) The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use, and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable.


Mar 31, 2014

(i) Basis of Preparation of Financial Accounts

These financial statements have been prepared under the historical cost convention, on accrual basis and are in accordance with the generally accepted accounting principles (GAAP) in India, the provisions of the Companies Act, 1956 and the Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006.

(ii) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statement and reported amounts of income and expenses during the period. Any revision to accounting estimates and or difference, if any, between the actual results and estimates is recognized in the period in which the results are known.

(iii) Tangible Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their present working condition. Capital Work-in-Progress represents cost of fixed assets that are not yet ready for their intended use as at the Balance sheet date .

(iv) Intangible Assets

Intellectual Property Rights (IPR) and software Licences which have been separately paid for and put to use are shown under "Fixed Assets" in the Balance Sheet.

Expenses incurred for software product development are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. Such expenses for acquiring intellectual property rights and licenses for projects under development on balance sheet date are shown under Capital Work-in-process.

(v) Depreciation

Depreciation on fixed assets is provided on Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956 on pro-rata basis, except depreciation on assets used in BOOT projects which are depreciated equally over the period of respective projects, depreciation on foreign branch assets has been provided at the rates followed under the relevant law of the foreign country which are: Computers 5%; Furniture and Fixture 5% and Computer Software are amortized over 5 years.

(vi) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if any is charged to the Profit and Loss Account 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 a change in the estimate of recoverable amount.

(vii) Leases

a) Lease arrangement, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognized as operating leases. Lease payments under operating lease are recognized as an expense in the profit & loss account. Operating lease rentals are expensed with reference to lease term and other considerations.

b) The lower of the fair value of the assets and present fair value of the minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to profit and loss account.

(viii) Foreign Currency Transactions

a) Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transactions.

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

c) Non-monetary foreign currency items are carried at cost.

d) In respect of foreign operations, which are non-integral operations, all assets and liabilities, both monetary and non-monetary, are translated at closing rate, while all income and expenses are translated at average exchange rate for the year. The resulting exchange differences are accumulated in the ''Foreign Currency Translation Reserve''

e) Any income or expense on account of exchange difference either on settlement translation or restatement, is recognized in the profit and loss account

(ix) Investments

Current investments are carried at the lower of the cost and fair market value.

Long-term investments are stated at cost. Cost includes costs incidental to acquisition such as legal costs, investment banking fees etc. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(x) Inventories

The portion of the Software development contracts which has remained unbilled, though partly completed is inventorised as "Software Development - Work-in-process."

The aggregate of ''Software Development'' income and the inventories viz. "Software Development - Work-in-process" is restricted to the contract value or the net realizable value of the work completed or the cost, whichever is less. For this purpose, manpower cost of the software development team and other directly attributable costs are considered for valuation.

(xi) Revenue Recognition

Our revenues for software development, both domestic and international, are generated primarily on fixed time frame and time and material basis. Revenue from software services under fixed-price contracts is recognized to the extent of billings due on achievement of milestones specified in the agreement. The expenditure incurred on unbilled services are inventoried. On time-and-materials contracts, revenue is recognized as the related services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license. Revenue from ICT contracts which are on BOOT/ BOO basis are recognized equally over the contract period post implementation of contract.

Revenues in case of hardware and software trading are recognized as and when these are delivered.

(xii) Employee Benefits

a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

b) In respect of Indian operations of the Company, post-employment and other long-term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

c) In respect of employee stock options, the intrinsic value of the options, i.e. the excess of market price of the underlying share on the date of the grant over the exercise price of the option is accounted as deferred employee compensation cost to be amortized over the vesting period.

(xiii) Borrowing Cost

Borrowing costs that are specifically attributable to the acquisition or construction of qualifying asset are capitalised as part of the cost of such asset till such time as the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires/takes a substantial period of time to get ready for its intended use. All other borrowing costs, i.e. not specifically attributable to the qualifying asset are charged to revenue in the period in which those are incurred.

(xiv) Taxes on Income

Current Income Tax comprises of taxes on income from operations in India and in foreign jurisdictions. Income tax liability in India is determined and provided in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between taxable income and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on

the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

(xv) Provisions, Contingent Liabilities and 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 statements.

(xvi) Derivative Contracts

In respect of derivative contracts, premium paid, gain/loss on settlement and provision for losses on restatement are recognized along with the underlying transactions and charged to Statement of Profit and Loss.''

(xvii) Research and Development Costs

(a) Research costs are expensed as incurred.

(b) Development costs including costs paid to third parties for technical knowhow, content etc. for software/content development are expensed as incurred, unless the technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software/ content and the costs can be measured reliably. Costs of such projects upon completion are classified as Intellectual property rights under intangible assets and amortised. Costs of such projects under development on balance sheet date are shown under Intangible assets under development.

(c) Research and development expenditure of a capital nature is included in the fixed assets.

(d) The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use, and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable.''


Mar 31, 2013

(i) Basis of Preparation of Financial Accounts : These financial statements have been prepared under the historical cost convention, on accrual basis and are in accordance with the generally accepted accounting principles (GAAP) in India, the provisions of the Companies Act, 1956 and the Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006.

(ii) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statement and reported amounts of income and expenses during the period. Any revision to accounting estimates and or difference, if any, between the actual results and estimates is recognized in the period in which the results are known.

(iii) Tangible Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their present working condition.

Capital Work-in-Progress represents cost of fixed assets that are not yet ready for their intended use as at the Balance sheet date and includes advances paid.

(iv) intangible Assets

Intellectual Property Rights (IPR) and software Licences which have been separately paid for and put to use are shown under "Fixed Assets" in the Balance Sheet.

Expenses incurred for software product development are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software and the costs can be measured reliably. Such expenses and the advances paid for acquiring intellectual property rights & licenses for projects under development on Balance Sheet date are shown under Capital Work-in-Progress.

(v) Depreciation

Depreciation on fixed assets is provided on Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act, 1956 on pro-rata basis, except depreciation on assets used in BOOT projects which are depreciated equally over the period of respective projects, depreciation on foreign branch assets has been provided at the rates followed under the relevant law of the foreign country which are: Computers 5%; Furniture & Fixture 5% and Computer Software are amortized over 5 years.

(vi) impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if any is charged to 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 a change in the estimate of recoverable amount.

(vii) Leases

(a) Lease arrangement, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognized as operating leases. Lease payments under operating lease are recognized as an expense in the statement of profit and loss. Operating lease rentals are expensed with reference to lease term and other considerations.

(b) The lower of the fair value of the assets and present fair value of the minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to statement of profit and loss.

(viii) Foreign currency Transactions

a. Transactions denominated in foreign currencies are recorded at the rate of exchange prevailing on the date of transactions.

b. Monetary items denominated in foreign currencies at the year end are restated at year end rates.

c. Non -monetary foreign currency items are carried at cost.

d. In respect of foreign operations, which are non-integral operations, all assets and liabilities, both monetary and non-monetary, are translated at closing rate, while all income and expenses are translated at average exchange rate for the year. The resulting exchange differences are accumulated in the ''Foreign Currency Translation Reserve''.

e. Any income or expense on account of exchange difference either on settlement translation or restatement, is recognized in the statement of profit and loss.

(ix) investments

Current investments are carried at the lower of the cost and fair market value. Long-term investments are stated at cost. Cost includes costs incidental to acquisition such as legal costs, investment banking fees etc. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(x) inventories

The portion of the Software development contracts which has remained unbilled, though partly completed is inventorised as "Software Development – Work-in-Progress."

The aggregate of ''Software Development'' income and the inventories viz. "Software Development – Work-in-Progress" is restricted to the contract value or the net realizable value of the work completed or the cost, whichever is less. For this purpose, manpower cost of the software development team and other directly attributable costs are considered for valuation.

(xi) revenue recognition

Our revenues for software development, both domestic and international, are generated primarily on fixed timeframe and time and material basis. Revenue from software services under fixed-price contracts is recognized to the extent of billings due on achievement of milestones specified in the agreement. The expenditure incurred on unbilled services are inventoried. On time-and-materials contracts, revenue is recognized as the related services are rendered. Revenue from the sale of user licenses for software applications is recognized on transfer of the title in the user license. Revenue from ICT contracts which are on BOOT/BOO basis are recognized equally over the contract period post implementation of contract.

Revenues in case of hardware and software trading are recognized as and when these are delivered.

(xii) Employee Benefits

a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

b) In respect of Indian operations of the Company, post- employment and other long-term employee benefits are recognized as an expense in the statement of profit and loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the statement of profit and loss.

c) In respect of employee stock options, the intrinsic value of the options, i.e. the excess of market price of the underlying share on the date of the grant over the exercise price of the option is accounted as deferred employee compensation cost to be amortized over the vesting period.

(xiii) Borrowing cost

Borrowing costs that are specifically attributable to the acquisition or construction of qualifying asset are capitalised as part of the cost of such asset till such time as the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires/takes a substantial period of time to get ready for its intended use. All other borrowing costs, i.e. not specifically attributable to the qualifying asset are charged to revenue in the period in which those are incurred.

(xiv) Taxes on income

Current Income Tax comprises of taxes on income from operations in India and in foreign jurisdictions. Income tax liability in India is determined and provided in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between taxable income and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

(xv) Provisions, Contingent Liabilities and 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 statements.

(xvi) Derivative contracts

In respect of derivative contracts, premium paid, gain/ loss on settlement and provision for losses on restatement are recognised along with the underlying transactions and charged to Statement of Profit and Loss.

(xvii) research and Development costs

(a) Research costs are expensed as incurred.

(b) Development costs including costs paid to third parties for technical knowhow, content etc. for software/ content development are expensed as incurred, unless the technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the software/content and the costs can be measured reliably. Costs of such projects upon completion are classified as Intellectual property rights under intangible assets and amortised. Costs of such projects under development on Balance Sheet date are shown under Intangible assets under development.

(c) Research and development expenditure of a capital nature is included in the fixed assets.

(d) The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use, and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable.

 
Subscribe now to get personal finance updates in your inbox!