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Accounting Policies of DMC Education Ltd. Company

Mar 31, 2014

1.1 METHOD OF ACCOUNTING:

a) The company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) Financial statements are prepared on the historical cost convention and on the principles of going concern, and in accordance with the prevalent accounting standards as applicable except as stated otherwise.

c) Accounting policies not specifically referred to otherwise, are consistent & in accordance with the generally accepted accounting principles followed by the company.

1.2 REVENUE RECOGNITION:

Revenue is recognized only when it is earned & its collection is reasonably certain.

1.3 FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties & taxes and incidental expenses less accumulated depreciation.

1.4 INVESTMENTS:

Investments are valued at cost of acquisition, which includes the brokerage and stamp duty. Dividend credited/ debited for the ex-dividend/cum-dividend transactions are considered with the cost of acquisition of the investments.

1.5 INVENTORIES:

Closing stock has been valued at cost (FIFO Method) or market value whichever is less.

1.6 DEPRECIATION:

Depreciation is charged on a pro-rata basis on the WDV as per the rates and in the manner prescribed under the Schedule XIV to the Companies Act, 1956.

1.7 CONTINGENT LIABILITY:

Contingent liabilities are determined on the basis of available information and are disclosed by way of Notes to the Accounts.

1.8 EMPLOYEE BENEFITS:

Since there is no employee in the Company who has completed 5 years of service till the end of this financial year so no provision for gratuity has been made in these financial statements.


Mar 31, 2013

1.1 METHOD OF ACCOUNTING:

a) The company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) Financial statements are prepared on the historical cost convention and on the principles of going concern, and in accordance with the prevalent accounting standards as applicable except as stated otherwise.

c) Accounting policies not specifically referred to otherwise, are consistent & in accordance with the generally accepted accounting principles followed by the company.

1.2 REVENUE RECOGNITION:

Revenue is recognized only when it is earned & its collection is reasonably certain.

1.3 FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties & taxes and incidental expenses less accumulated depreciation.

1.4 INVESTMENTS:

Investments are valued at cost of acquisition, which includes the brokerage and stamp duty. Dividend credited/ debited for the ex-dividend/cum-dividend transactions are considered with the cost of acquisition of the investments.

1.5 INVENTORIES:

Closing stock has been valued at cost (FIFO Method) or market value whichever is less.

1.6 DEPRECIATION:

Depreciation is charged on a pro-rata basis on the WDV as per the rates and in the manner prescribed under the Schedule XIV to the Companies Act, 1956.

1.7 CONTINGENT LIABILITY:

Contingent liabilities are determined on the basis of available information and are disclosed by way of Notes to the Accounts.

1.8 EMPLOYEE BENEFITS:

Since there is no employee in the Company who has completed 5 years of service till the end of this financial year so no provision for gratuity has been made in these financial statements.


Mar 31, 2010

A) Basis of preparation of financial Statements:

- The financial Statements have been prepared under the historical cost convention on accrual basis as a going concern in accordance with generally accepted accounting principles and provisions of Companies Act, 1956.

- Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B) Fixed Assets and Depreciation:

- Fixed Assets are accounted for on historical cost less depreciation.

- Expenses incurred on internal development of courseware and products are capitalized either individually or as knowledge bank in the form of software ,once their technical feasibility and ability to generate future economic benefits is established in accordance with the requirements of Accounting Standards 26, “Intangible Assets” as notified under section 211 (3) of the Companies Act,1956. Expenses incurred during the research phase till the establishment of commercial feasibility is charged to the Profit and Loss Account.

- Impairment of Assets

All assets other than inventories, investment and deferred tax assets, are reviewed for impairment, whether events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount.

C) Investment:

Long term investments are valued at their acquisition cost. Any decline in the value of the said investment, other than a temporary decline, is recognized and charged to Profit and Loss Account. Short-term investment are carried at cost or market value, whichever is lower.

D) Revenue Recognitions:

The revenue in respect of sale of courseware, technical information and reference material and other goods are recognized on dispatch/ delivery of the material to the customer whereas the revenue from the tuition activity / training is recognized over the period of the course programmes or as per the terms of agreement, as the case may be.

E) Valuation of Inventory:

Inventories are valued at cost or net realizable value whichever is less. Cost is determined using weighted average method and includes applicable costs incurred in bringing inventories to their present location and condition.

F) Retirement Benefit:

DMC provides for gratuity, a defined benefit retirement plan (the“Gratuity plan) covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity plan provides a lump sum payment to vested employees at retirement, death, incorporation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

G) Contingent Liabilities:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made.

Disclosure of show cause notices are made on merits of the matters where management foresees possibilities of outflow of resources.

H) Taxation:

Tax expenses, comprising of both current tax (including fringe benefit tax) and deferred tax is included in determining the net results for the year. Deferred Tax reflect the effect of timing differences between the assets and liabilities recognized for financial reporting purposes and the amounts that are recognized for current tax purposes. As a matter of prudence deferred tax assets are recognized and carried forward only to the extent, there is a reasonable/ virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Current Tax is determined based on the provisions of Income Tax Act, 1961.Minimum Alternate Tax (MAT).

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