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.