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Accounting Policies of Everonn Education Ltd. Company

Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 of the Companies 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the other relevant provisions of the Companies Act, 2013 (The 2013 Act") / Companies Act, 1956 (the 1956 Act") as applicable.

The company is pursuing various options towards fund raising in the form of debt or equity or mix of both, and negotiating with the current lenders and is also reviewing the business plan and firmly believes that with the combination of internal accruals in the next financial year and on achieving successful closure of these options in the coming months, the Company will be able to meet all its obligations. Consequently the management believes that the use of going concern assumption continues to be appropriate in the preparation of these financial statements. Accordingly the assets and liabilities have been recorded in these financial statements on the basis that the company will be able to realize its assets and discharge its liabilities in the normal course of the business. The management is of the view that despite the losses which are already forming part of the holding company as well as in the books of certain inoperative subsidiaries, the company is and will remain as a going concern and on this basis the financials, assets, liabilities are stated in the books of accounts.

1.2 USE OF ESTIMATES

The preparation and presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent 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 is recognized in the period in which the results are known / materialized.

1.3 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL WORK-IN-PROGRESS

Fixed Assets are carried at cost less accumulated depreciation and impairment loss if any. Cost includes all expenses incurred to bring the assets to its present location and condition. Assets acquired on hire purchase are capitalized at gross value and interest thereon is charged to revenue.

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and impairment loss if any.

In respect of new projects setup include direct cost incurred are added to the cost of fixed assets and wherever the same is not exactly quantifiable, an reasonable allocation of expenditure is made, reflecting a portion of the cost as forming part of the cost of installation of the asset.

1.4 DEPRECIATION AND AMORTIZATION

i. Depreciation on fixed assets is provided on Straight Line Method over the useful life of assets as prescribed in Schedule II of the Companies Act, 2013, except

a) Fixed assets purchased for usage in executing the contractual obligations with the customers under the project are depreciated over the period of contract.

b) Intangible assets comprising knowledge resource and content are amortized over a period of five years.

iI. Deprecation on addition to the assets is calculated on a monthly pro-rata basis

1.5 REVENUE RECOGNITION

a) Education and training income is recognized on rendering of services over the period of instruction as per the terms of agreement as the case may be.

b) In respect of fixed price contracts, revenue is recognized as per the proportionate completion method.

c) Revenue in respect of sale of trading, courseware content and knowledge resource is recognized on the basis of dispatch/delivery of the material to the customers.

d) Revenue from online educational services is recognized upon receipt of subscription fees. In case of supply to license, the revenue is recognized on establishment of right to receive.

e) Dividend income is recognized when the right to receive it is established. Interest income is recognized on time proportion basis.

1.6 INVESTMENTS

Investments are classified as current or long term in accordance with Accounting Standard 13 on "Accounting for Investments". Current investments are stated at lower of cost or market value. Any reduction in the carrying amount and or any reversal of such reduction are charged or credited to the statement of Profit and Loss.

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment.

1.7 LEASES

Lease arrangements where the risks and rewards incidental to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on straight-line basis over the lease term. Finance lease transactions are considered as financing arrangements in accordance with Accounting Standard 19 and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognized as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to the leased asset.

1.8 EMPLOYEE BENEFITS

Employee benefits include provident fund, gratuity fund, employee state insurance, and compensated absences.

a) Defined contribution Plan

The company has contributed to provident, pension funds which are defined contribution plans. The contributions paid/ payable under the scheme is recognized during the year in which employee renders the related service.

b) Defined Benefit Plan

Gratuity

The Company provides for gratuity, 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, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. Company's liability is actuarially determined at the end of the year and any shortfall in the fund size maintained by the Trust set up by the Company with SBI Life Insurance Co. Limited is additionally provided for.

The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with SBI Life Insurance Co. Limited is provided for in the books.

Actuarial losses/ gains are charged/ credited to the Statement of Profit and Loss in the year in which such Losses/ gains arise.

Compensated absences

Liability in respect of compensated absences is provided both for cashable leave and those expected to be availed. The Company has defined benefit plans for compensated absences for employees, the liability for which is determined on the basis of management estimation at the end of the year. Any gain or loss arising out of such valuation is recognized in the Statement of Profit and Loss.

1.9 PROVISIONS, CONTINGENCIES AND COMMITMENTS

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 cannot be made. Disclosure of show cause notices are made on merits of the matters where management foresees possibilities of outflow of resources.

Claims receivable are accounted at the time when such income has been earned by the Company depending on the certainty of receipts. Claims payable are accounted at the time of acceptance.

Claims raised by the Government Authorities regarding Taxes and Dues which are disputed by the Company are accounted based on merits of each claim.

1.10 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale and other borrowing costs are recognized as an expense in the period in which they are incurred.

1.11 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income of the year.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as at the balance sheet date. Deferred Tax asset in respect of unabsorbed depreciation and carry forward losses are recognized only if there is virtual certainty that there will be sufficient taxable income available to realize such assets. The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

1.12 FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year-end are recognized in the profit and loss account.

1.13 IMPAIRMENT OF ASSETS

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

1.14 EARNINGS PER SHARE

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares unless the results would be anti - dilutive. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

1.15 CASH FLOW STATEMENT

Cash flows are reported using the indirect method; where by net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investment and financing activities of the Company are segregated.

Cash and Cash equivalents for the purpose of cash flow statement comprises of Cash at Bank including Demand Deposit accounts, Cash in Hand (including cheques in hand).


Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C)[ Companies (Accounting Standards) Rules, 2006, as amended] (which continues to be applicable in terms of General circular 15/2013 date September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and the other relevant provisions of the Companies Act, 1956.

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 VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

The company is pursuing various options towards fund raising in the form of debt or equity or mix of both, and negotiating with the current lenders and is also reviewing the business plan and firmly believes that with the combination of internal accruals in the next financial year and on achieving successful closure of these options in the coming months it will be able to meet all its obligations. Consequently the management believes that the use of going concern assumption continues to be appropriate in the preparation of these financial statements. Accordingly the assets and liabilities have been recorded in these financial statements on the basis that the company will be able to realize its assets and discharge its liabilities in the normal course of the business.

2.2 USE OF ESTIMATES

The preparation and presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent 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 is recognized in the period in which the results are known/ materialized.

2.3 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL WORK-IN-PROGRESS

Fixed Assets are carried at cost less accumulated depreciation and impairment loss if any. Cost includes all expenses incurred to bring the assets to its present location and condition. Assets acquired on hire purchase are capitalized at gross value and interest thereon is charged to revenue.

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and impairment loss if any.

In respect of new projects setup include direct cost incurred are added to the cost of fixed assets and wherever the same is not exactly quantifiable, an reasonable allocation of expenditure is made, reflecting a portion of the cost as forming part of the cost of installation of the asset.

2.4 DEPRECIATION AND AMORTIZATION

Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except

a) Fixed assets purchased for usage in executing the contractual obligations with the customers under the project are depreciated over the period of contract.

b) Intangible assets comprising knowledge resource and content are amortized over a period of five years. Deprecation on addition to the assets is calculated on a monthly pro-rata basis

2.5 REVENUE RECOGNITION

a) Education and training income is recognized on rendering of services over the period of instruction as per the terms of agreement as the case may be.

b) In respect of fixed price contracts, revenue is recognized as per the proportionate completion method.

c) Revenue in respect of sale of trading, courseware content and knowledge resource is recognized on the basis of dispatch / delivery of the material to the customers.

d) Revenue from online educational services is recognized upon receipt of subscription fees. In case of supply to license, the revenue is recognized on establishment of right to receive.

e) Dividend income is recognized when the right to receive it is established. Interest income is recognized on time proportion basis.

2.6 INVESTMENTS

Investments are classified as current or long term in accordance with Accounting Standard 13 on "According for Investments". Current investments are stated at lower of cost or market value. Any reduction in the carrying amount and or any reversal of such reduction are charged or credited to the statement of Profit and Loss.

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment.

2.7 LEASES

Lease arrangements where the risks and rewards incidental to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on straight-line basis over the lease term. Finance lease transactions are considered as financing arrangements in accordance with Accounting Standard 19 and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognized as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to the leased asset.

2.8 EMPLOYEE BENEFITS

Employee benefits include provident fund, gratuity fund, employee state insurance, and compensated absences.

a) Defined contribution Plan

The company has contributed to provident, pension funds which are defined contribution plans. The contributions paid/ payable under the scheme is recognized during the year in which employee renders the related service.

b) Defined Benefit Plan

Gratuity

The Company provides for gratuity, 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, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. Company''s liability is actuarially determined at the end of the year and any shortfall in the fund size maintained by the Trust set up by the Company with SBI Life Insurance Co. Limited is additionally provided for.

The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with SBI Life Insurance Co. Limited is provided for in the books.

Actuarial losses/ gains are charged/ credited to the Statement of Profit and Loss in the year in which such Losses/ gains arise.

Compensated absences

Liability in respect of compensated absences is provided both for cashable leave and those expected to be availed. The Company has defined benefit plans for compensated absences for employees, the liability for which is determined on the basis of management estimation at the end of the year. Any gain or loss arising out of such valuation is recognized in the Statement of Profit and Loss.

2.9 PROVISIONS, CONTINGENCIES AND COMMITMENTS

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 cannot be made. Disclosure of show cause notices are made on merits of the matters where management foresees possibilities of outflow of resources.

Claims receivable are accounted at the time when such income has been earned by the Company depending on the certainty of receipts. Claims payable are accounted at the time of acceptance.

Claims raised by the Government Authorities regarding Taxes and Dues which are disputed by the Company are accounted based on merits of each claim.

2.10 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale and other borrowing costs are recognized as an expense in the period in which they are incurred.

2.11 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income of the year.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as at the balance sheet date. Deferred Tax asset in respect of unabsorbed depreciation and carry forward losses are recognized only if there is virtual certainty that there will be sufficient taxable income available to realize such assets. The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

2.12 FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year-end are recognized in the profit and loss account.

2.13 IMPAIRMENT OF ASSETS

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

2.14 EARNINGS PER SHARE

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares unless the results would be anti - dilutive. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

2.15 CASH FLOW STATEMENT

Cash flows are reported using the indirect method; wherebynet profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investment and financing activities of the Company are segregated.

Cash and Cash equivalents for the purpose of cash flow statement comprises of Cash at Bank including Demand Deposit accounts, Cash in Hand (including cheques in hand).

b) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each Shareholder is eligible for one vote per share held. The equity shareholders are eligible to receive in the remaining assets of the company after distribution of all preferential amounts, in proportion to their

shareholding.

d) During the year the company has issued 1 Optionally Convertible Debenture of Rs. 4,33,14 (''000) convertible into 10,91,303 Equity shares at Rs. 39.69 per share convertible at any time at the option of the holder on or before 26th Sep 2015.

During the year the company had approached its Bankers towards restructuring of repayment terms of the existing loans including fresh facilities. The loans have been restructured by Axis Bank Ltd, State Bank of India and ICICI Bank Ltd. The restructured agreement provides for restructuring of repayment terms for principal and interest, reduction / adjustments in interest rates, conversion of outstanding interest amount to loan, promoters undertaking for additional infusion of funds, monitoring oversight and certain restrictive covenants. The measurement, classification and disclosure of the Company''s term loan obligations have been recorded in these financial statements in accordance with the Debt Restructuring Agreement.

a. Loan from Related Party and from subsidiaries does not carry any interest and is repayable on demand.

b. The Company has defaulted in repayment of Working Capital term loan along with interest from Standard Chartered Bank. The matter has been referred to Debt Recovery Tribunal. On non-receipt bank statement, the company has accrued interest based on sanction terms.

Deferred tax asset has been recognized on account of unabsorbed depreciation and business loss for the year ended 31st March, 2014. The management is of the opinion that there is a virtual certainty against which such deferred tax will be realized especially on account of the new economic conditions. It is heartening to note that the business plans of the company as well as core associates were fully accepted by the bankers who have extended additional facilities including moratorium on loans and interest.


Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C)[Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956.

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 VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

The company is pursuing various options towards fund raising in the form of debt or equity or mix of both, and negotiating with the current lenders and is also reviewing the business plan and firmly believes that with the combination of internal accruals in the next financial year and on achieving successful closure of these options in the coming months it will be able to meet all its obligations. Consequently the management believes that the use of going concern assumption continues to be appropriate in the preparation of these financial statements.Accordingly the assets and liabilities have been recorded in these financial statements on the basis that the company will be able to realize its assets and discharge its liabilities in the normal course of the business.

1.2 USE OF ESTIMATES

The preparation and presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent 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 is recognized in the period in which the results are known/ materialized.

1.3 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL WORK-IN-PROGRESS

Fixed Assets are carried at cost less accumulated depreciation and impairment loss if any. Cost includes all expenses incurred to bring the assets to its present location and condition. Assets acquired on hire purchase are capitalized at gross value and interest thereon is charged to revenue. Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and impairment loss if any.

1.4 DEPRECIATION AND AMORTIZATION

Depreciation on fixed assets other than purchased for usage in executing the contractual obligations with the customers under the project is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except

a) Fixed assets purchased for usage in executing the contractual obligations with the customers under the project are depreciated over the period of contract.

b) Intangible assets comprising knowledge resource and content are amortized over a period of five years.

Deprecation on addition to the assets is calculated on a monthly pro-rata basis

1.5 REVENUE RECOGNITION

a) Education and training income is recognized on rendering of services over the period of instruction as per the terms of agreement as the case may be.

b) In respect of fixed price contracts, revenue is recognized as per the proportionate completion method.

c) Revenue in respect of sale of trading.courseware content and knowledge resource is recognized on the basis of dispatch/delivery of the material to the customers.

d) Revenue from online educational services is recognized upon receipt of subscription fees. In case of supply to license, the revenue is recognized on establishment of right to receive.

e) Dividend income is recognized when the right to receive it is established. Interest income is recognized on time proportion basis.

1.6 INVESTMENTS

Investments are classified as current or long term in accordance with Accounting Standard 13 on "According for Investments". Current investments are stated at lower of cost or market value. Any reduction in the carrying amount and or any reversal of such reduction are charged or credited to the statement of Profit and Loss.

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment.

1.7 LEASES

Lease arrangements where the risks and rewards incidental to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on straight-line basis over the lease term. Finance lease transactions are considered as financing arrangements in accordance with Accounting Standard 19 and the leased asset is capitalized at an amount equal to the present value of future lease payments and a corresponding amount is recognized as a liability. The lease payments made are apportioned between finance charge and reduction of outstanding liability in relation to the leased asset.

1.8 EMPLOYEE BENEFITS

Employee benefits include provident fund, gratuity fund, employee state insurance, and compensated absences.

a) Defined contribution Plan

The company has contributed to provident, pension which are defined contribution plans. The contributions paid/ payable under the scheme is recognized during the year in which employee renders the related service.

b) Defined Benefit Plan

Gratuity

The Company provides for gratuity, 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, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment.

Company''s liability is actuarially determined at the end of the year and any shortfall in the fund size maintained by the Trust set up by the Company with SBI Life Insurance Co. Limited is additionally provided for.

The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with SBI Life Insurance Co. Limited is provided for in the books.

Actuarial losses/ gains are charged/ credited to the Statement of Profit and Loss in the year in which such Losses / gains arise.

Compensated Absences

Liability in respect of compensated absences is provided both for cashable leave and those expected to be availed. The Company has defined benefit plans for compensated absences for employees, the liability for which is determined on the basis of management estimation at the end of the year. Any gain or loss arising out of such valuation is recognized in the Statement of Profit and Loss.

1.9 PROVISIONS, CONTINGENCIES AND COMMITMENTS

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 cannot be made. Disclosure of show cause notices are made on merits of the matters where management foresees possibilities of outflow of resources.

Claims receivable are accounted at the time when such income has been earned by the Company depending on the certainty of receipts. Claims payable are accounted at the time of acceptance.

Claims raised by the Government Authorities regarding Taxes and Dues which are disputed by the Company are accounted based on merits of each claim.

1.10 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale and other borrowing costs are recognized as an expense in the period in which they are incurred.

1.11 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income of the year.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted as at the balance sheet date.Deferred Tax asset in respect of unabsorbed depreciation and carry forward losses are recognized only if there is virtual certainty that there will be sufficient taxable income available to realize such assets. The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

1.12 FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year-end are recognized in the profit and loss account.

1.13 IMPAIRMENT OF ASSETS

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

1.14 EARNINGS PER SHARE

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares unless the results would be anti - dilutive. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

1.15 CASH FLOW STATEMENT

Cash flows are reported using the indirect method;wherebynet profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investment and financing activities of the Company are segregated.

Cash and Cash equivalents for the purpose of cash flow statement comprises of Cash at Bank including Demand Deposit accounts, Cash in Hand (including cheques in hand).


Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C)[Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of theCompanies Act, 1956.

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 VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

1.2 USE OF ESTIMATES

The preparation and presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent 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 is recognised in the period in which the results are known/ materialised.

1.3 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL WORK-IN-PROGRESS

Fixed Assets are carried at cost less accumulated depreciation and impairment loss if any. Cost includes all expenses incurred to bring the assets to its present location and condition. Assets acquired on hire purchase are capitalized at gross value and interest thereon is charged to revenue. Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization

1.4 DEPRECIATION AND AMORTIZATION

Depreciation on fixed assets other than purchased for usage in executing the contractual obligations with the customers under the project is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except

a) Fixed assets purchased for usage in executing the contractual obligations with the customers under the project are depreciated over the period of contract.

b) Intangible assets comprising knowledge resource and content are amortized over a period of five years.

Deprecation on addition to the assets is calculated on a monthly prorata basis

1.5 REVENUE RECOGNITION

a) Education and training income is recognized on rendering of services over the period of instruction as per the terms of agreement as the case may be.

b) In respect of fixed price contracts, revenue is recognized as per the proportionate completion method.

c) Revenue in respect of sale of courseware content and knowledge resource is recognized on the basis of despatch/delivery of the material to the customers.

d) Revenue from online educational services is recognized upon receipt of subscription fees. In case of supply to licensee, the revenue is recognized on establishment of right to receive.

e) Dividend income is recognized when the right to receive payment is established. Interest income is recognized on time proportion basis.

1.6 INVESTMENTS

Investments are classified as current or long term in accordance with Accounting Standard 13 on "Accounting for Investments". Current investments are stated at lower of cost or market value. Any reduction in the carrying amount and or any reversal of such reduction are charged or credited to the statement of Profit and Loss.

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at lower of cost or quoted/ fair value computed category wise.

1.7 LEASES

Lease arrangements where the risks and rewards incidental to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on straight-line basis over the lease term. Finance lease transactions are considered as financing arrangements in accordance with Accounting Standard 19 and the leased asset is capitalised at an amount equal to the present value of future lease payments and a corresponding amount is recognised as a liability. The lease payments made areapportioned between finance charge and reduction of outstanding liability in relation to the leased asset.

1.8 EMPLOYEE BENEFITS

a) Defined contribution Plan

The company has contributed to provident, pension which are defined contribution plans. The contributions paid/ payable under the scheme is recognised during the year in which employee renders the related service.

b) Defined Benefit Plan GRATUITY

The Company 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, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. Company's liability is actuarially determined at the end of the year and any shortfall in the fund size maintained by the Trust set up by the Company with SBI Life Insurance Co. Limited is additionally provided for.

The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with SBI Life Insurance Co. Limited is provided for in the books.

Actuarial losses / gains are charged / credited to the Statement of Profit and Loss in the year in which such losses / gains arise.

COMPENSATED ABSENCES

Liability in respect of compensated absences is provided both for cashable leave and those expected to be availed. The Company has defined benefit plans for compensated absences for employees, the liability for which is determined on the basis of management estimation at the end of the year. Any gain or loss arising out of such valuation is recognised in the Statement of Profit and Loss.

1.9 PROVISIONS, CONTINGENCIES AND COMMITMENTS

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 cannot be made. Disclosure of show cause notices are made on merits of the matters where management foresees possibilities of outflow of resources.

Claims receivable are accounted at the time when such income has been earned by the Company depending on the certainty of receipts. Claims payable are accounted at the time of acceptance.

Claims raised by the Government Authorities regarding Taxes and Dues which are disputed by the Company are accounted based on merits of each claim.

1.10 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale and other borrowing costs are recognized as an expense in the period in which they are incurred.

1.11 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income of the year.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

1.12 FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year end are recognized in the statement of Profit and Loss.

1.13 IMPAIRMENT OF ASSETS

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

1.14 EARNINGS PER SHARE

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares unless the results would be anti - dilutive. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

1.15 CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investment and financing activities of the Company are segregated.

Cash and Cash equivalents for the purpose of cash flow statement comprises of Cash at Bank, Cash in Hand (including cheques in hand).


Mar 31, 2011

1. Basis of Preparation of Financial Statements

Financial Statements are prepared on an accrual basis, under historical cost convention and in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India and as per the requirements of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the year.

3. Fixed Assets, Intangible Assets and Capital Work-in-Progress

Fixed Assets are carried at cost less accumulated depreciation and impairment loss, if any. Cost includes all expenses incurred to bring the assets to its present location and condition. Capital Work-in-Progress comprises outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not yet ready for their intended use at the reporting date. Assets acquired on hire purchase are capitalized at gross value and interest thereon is charged to revenue. Intangible assets are stated at cost of acquisition/ cost of development less accumulated amortization.

4. Depreciation and Amortization

Depreciation on fixed assets other than purchased for usage in executing the contractual obligations with the customers under the project is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

Fixed assets purchased for usage in executing the contractual obligations with the customers under the project are depreciated over the period of contract.

Intangible assets comprising knowledge resource and content are amortized over a period of five years.

5. Revenue Recognition

Education and training income is recognised on rendering of services over the period of instruction as per the terms of agreement as the case may be.

In respect of fixed price contracts, revenue is recognised as per the proportionate completion method.

Revenue in respect of sale of courseware content and knowledge resource is recognised on the basis of despatch/delivery to the customers. Revenue in respect of sale of hardware is recognised when substantial risks and rewards of ownership is transferred to the buyer under the terms of the contract. Revenue from online educational services is recognised upon receipt of subscription fees.In case of supply to licensee, the revenue is recognised on establishment of right to receive. Dividend income is recognised when the right to receive payment is established. Interest income is recognised on time proportion basis.

6. Investments

Long term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted/ fair value computed category wise.

7. Leases

Lease arrangements where the risks and rewards incidental to the ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the Profit and Loss account on a straight line basis over the lease term.

8. Employee Benefits

a. Short term employee benefits are charged off at the undiscounted amount in the year in which related service is rendered.

b. Post employment and other long term employee benefits are charged off in the year in which the employee has rendered the service. The amount charged off is recognised at the present value of the amount payable determined using actuarial valuation technique. Actuarial gain and loss in respect

of post employment and other long term benefits are charged to profit and loss account.

9. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made.

Contingent liabilities not provided for are disclosed by way of notes.

Contingent assets are neither recognised nor disclosed in the financial statements.

10. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale and other borrowing costs are recognised as an expense in the period in which they are incurred.

11. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient taxable income will be available to realize such assets. In other situations, deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance taxes paid and income tax provisions arising in the same tax jurisdiction and the Company intends to settle the assets and liabilities on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

12. Foreign Currency Transactions

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year end are recognised in the profit and loss account.

13. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds the recoverable amount.

14. Earnings Per Share

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued up on conversion of all dilutive potential equity shares.

15. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investment and financing activities of the Company are segregated.

Cash and Cash equivalents for the purpose of cash flow statement comprises of Cash at Bank, Cash in Hand (including cheques in hand) and short term investments.

16. Accounting of Claims

Claims receivable are accounted at the time when such income has been earned by the Company depending on the certainty of receipts. Claims payable are accounted at the time of acceptance.

Claims raised by the Government Authorities regarding Taxes and Dues which are disputed by the Company are accounted based on merits of each claim.


Mar 31, 2010

1. Basis of Preparation of Financial statements

Financial Statements are prepared on an accrual basis, under historical cost convention and in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India and as per the requirements of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements requires the management of the company to make estimate and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the year.

3. Fixed Assets, Intangible Assets and Capital Work-in-Progress

Fixed Assets are carried at cost less accumulated depreciation and impairment loss if any. Cost includes all expenses incurred to bring the assets to its present location and condition. Capital Work-in-Progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the reporting date. Assets acquired on hire purchase are capitalized at gross value and interest there-on is charged to revenue. Intangible assets are stated at cost of acquisition/ cost of development less accumulated amortization.

4. Depreciation and Amortization

Depreciation on fixed assets other than purchased for usage in executing the contractual obligations with the customers under the project is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

Fixed assets purchased for usage in executing the contractual obligations with the customers under the project are depreciated over the period of contract.

Intangible assets comprising knowledge resource and content are amortized over a period of five years

5. Revenue Recognition

Education and training income is recognized on rendering of services over the period of instruction.

In respect of fixed price contracts, revenue is recognized as per the proportionate completion method.

Revenue in respect of sale of courseware content and knowledge resource is recognized on the basis of dispatch/delivery to the customers.

Revenue in respect of sale of hardware is recognized when substantial risks and rewards of ownership is transferred to the buyer under the terms of the contract.

Revenue from online educational services is recognized upon receipt of subscription fees. Dividend income is recognized when the right to receive payment is established. Interest income is recognized on time proportion basis.

6. Investments

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted/ fair value computed category wise.

7. Leases

Lease arrangements where the risks and rewards incidental to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on a straight-line basis over the lease term.

8. Employee Benefits

a. Short term employee benefits are charged off at the undiscounted amount in the year in which related service is rendered.

b. Post employment and other long term employee benefits are charged off in the year in which the employee has rendered the service. The amount charged off is recognized at the present value of the amount payable determined using actuarial valuation technique. Actuarial gain and loss in respect of post employment and other long term benefits are charged to profit and loss account.

9. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made.

Contingent liabilities are not provided for and are disclosed by way of notes.

Contingent assets are neither recognized nor disclosed in the financial statements.

10. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale and other borrowing costs are recognized as an expense in the period in which they are incurred.

11. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize such assets. In other situations, deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance taxes paid and income tax provisions arising in the same tax jurisdiction and the Company intends to settle the asset and liability on a net basis.

The company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

12. Foreign Currency Transactions

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and from the translations of monetary assets and liabilities denominated in foreign currencies at the year end are recognized in the profit and loss account.

13. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

14. Earnings Per Share

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued up on conversion of all dilutive potential equity shares.

15. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flows from regular revenue generating investment and financing activities of the Company are segregated.

16. Share Issue Expenses

Expenditure relating to issue of shares is adjusted against the Securities Premium Account.

 
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