Accounting Policies of LCC Infotech Ltd. Company

Mar 31, 2015

A. Basis of Preparation of Financial Statements

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention.

B. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based upon the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets and liabilities in future periods.

C. Fixed Assets

Tangible Assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

D. Depreciation, Amortisation and Depletion

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on Fixed Assets added/disposed off during the period is provided on prorata basis with reference to the date of addition/disposal.

In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

E. Impairment

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Investments

Investments that are readily realisable and intended to be held for not more than one year from the date on which such investment is made are classified as Current Investments. Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.

G. Inventories

Items of inventories are measured at lower of cost and net realisable value.

H. Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statement comprise of cash at bank and Cash/Cheque on hand and short-term investments.

I. Earnings per Share

Basic Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

J. Revenue Recognition

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

b) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rates applicable.

c) Dividend income is recognized when the shareholder's right to receive dividend is established by the balance sheet date.

K. Accounting for Taxes on Income

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

L. Provisions, Contingent Libilities and Contingent Assets

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

I. Basis of preparation of Financial Statements

The financial statements have been prepared to comply in all material aspects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

ii. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the reporting year end. Although these estimates are based upon the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets and liabilities in future periods.

iii. Revenue Recognition

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

b) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rates applicable.

c) Dividend income is recognized when the shareholder''s right to receive dividend is established by the balance sheet date.

iv. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation/amortization and impairment, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

v. Impairment of Fixed Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment based on external/internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount which represents the greater of the net selling price and ''Value in use'' of the assets. The estimated future cash flows considered for determining the value in use, are discounted to their present value at the weighted average cost of capital.

vi. Depreciation

* Depreciation on fixed assets is provided on straight line method at the rates specified in schedule XIV to the Companies Act, 1956.

* Depreciation on Fixed Assets added/disposed off during the period is provided on prorata basis with reference to the date of addition/disposal.

* In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

vii. Investments

Investments that are readily realisable and intended to be held for not more than one year from the date on which such investment is made are classified as Current Investments. All other Investments are classified as Long term Investments. Current Investments are stated at lower of cost and market rate on an individual investment basis. Long term investments are considered "at cost" on individual investment basis, unless there is a decline other than temporary in the value, in which case adequate provision is made against such diminution in the value of investments.

viii. Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred Income tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

The deferred tax for timing differences between the book and tax profit for the year is accounted for using the tax rates and laws that have been substantively enacted as of the Balance Sheet date. Deferred tax asset is recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised. If the Company has carry forward unabsorbed depreciation and tax losses, deferred tax asset is recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient taxable income will be available in future against which such deferred tax asset can be realised.

The carrying amount of deferred tax asset is reviewed at each Balance Sheet date. The company writes down the carrying amount of a Deferred Tax Asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such writedown is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

At each Balance Sheet date, the Company recognizes the unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax asset can be realized.

ix. Inventory

Inventory is valued at lower of cost and net realisable value.

x. Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statement comprise of cash at bank and Cash/ Cheque on hand and short-term investments with an original maturity of three months or less.

xi. Earnings Per Share

Basic Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xii. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions made in terms of Accounting Standard 29 are not discounted to its present value and are determined based on management estimate required to settle the obligation, at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

xiii. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

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Mar 31, 2013

I. Basis of preparation of Financial Statements

The financial statements have been prepared to comply in all material aspects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

ii. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the reporting year end. Although these estimates are based upon the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets and liabilities in future periods.

iii. Revenue Recognition

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

b) Franchisee registration fees are recognized as per the related agreement on receipt basis.

c) Royalty at the rates agreed with the franchisees is recognized on receipt basis.

d) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rates applicable.

e) Dividend income is recognized when the shareholder''s right to receive dividend is established by the balance sheet date.

iv. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation/amortization and impairment, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

v. Impairment of Fixed Assets

The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment based on external/internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount which represents the greater of the net selling price and ‘Value in use'' of the assets. The estimated future cash flows considered for determining the value in use, are discounted to their present value at the weighted average cost of capital.

vi. Depreciation

* Depreciation on fixed assets is provided on straight line method at the rates specified in schedule XIV to the Companies Act, 1956.

* Depreciation on Fixed Assets added/disposed off during the period is provided on prorata basis with reference to the date of addition/disposal.

* In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

vii. Investments

Investments that are readily realisable and intended to be held for not more than one year from the date on which such investment is made are classified as Current Investments. All other Investments are classified as Long term Investments. Current Investments are stated at lower of cost and market rate on an individual investment basis. Long term investments are considered "at cost" on individual investment basis, unless there is a decline other than temporary in the value, in which case adequate provision is made against such diminution in the value of investments.

viii. Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred Income tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

The deferred tax for timing differences between the book and tax profit for the year is accounted for using the tax rates and laws that have been substantively enacted as of the Balance Sheet date. Deferred tax asset is recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised. If the Company has carry forward unabsorbed depreciation and tax losses, deferred tax asset is recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient taxable income will be available in future against which such deferred tax asset can be realised.

The carrying amount of deferred tax asset is reviewed at each Balance Sheet date. The company writes down the carrying amount of a Deferred Tax Asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write- down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

At each Balance Sheet date, the Company recognizes the unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax asset can be realized.

ix. Inventory

Inventory is valued at lower of cost and net realisable value.

x. Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statement comprise of cash at bank and Cash/ Cheque on hand and short-term investments with an original maturity of three months or less.

xi. Earnings Per Share

Basic Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xii. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions made in terms of Accounting Standard 29 are not discounted to its present value and are determined based on management estimate required to settle the obligation, at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

xiii. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

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Mar 31, 2012

1 Fixed Assets:- Fixed Assets (tangible and intangible) are stated at Historical Cost. Cost Comprises purchase price and attributable cost.

2 Depreciation on straight-line basis is provided on tangible Fixed Assets in the manner and at rates as per Schedule XIV of the Companies Act, 1956.

3 Investments:- Investments (stated at cost) have been classified as Long Term Investments in accordance with Accounting Standard - 13 issued by the Institute of Chartered Accountants of India. Gains / Losses on disposal of Investments are recognized as income / expenditure. Dividends are accounted for when received.

4 Inventories:- The year-end inventory items are valued at lower of cost or net realizable value.

5 Recognition of Income and Expenditure:-

5.1 Items of income and expenditure are recognised on accrual and prudent basis.

5.2 Franchisee registration fees are recognised as per related agreement on receipt basis.

5.3 Royalty at the rates agreed with the franchisees is recognised on receipt basis.

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Mar 31, 2010

1.1 Fixed Assets

Fixed Assets (tangible and intangible) are stated at cost of acquisition. Cost Comprises pur- chase price and attributable cost.

1.2 Depreciation

1.2.1 Depreciation on straight-line basis is provided on tangible Fixed Assets in the manner and at rates as per Schedule XIV of the Companies Act, 1956.

1.2.2 The management has decided to periodically review the useful life of intangible assets in the form of brand and trade name as also the rights under the franchisee agreements, so as to amortize the related cost on aprudent basis over a few years from the date of acquisition of the related assets.

1.3 Investments

Investments (stated at cost) have been classified as Long Term Investments in accordance with the Accounting Standards - 13 issued by the Institute of Chartered Accountants of India. Gains / Losses on disposal of Investments are recognized as income / expenditure. Dividends are accounted for when received.

1.4 Inventories

The year-end inventory items are valued at lower of cost (determined on the weighted aver- age method) or net realisable value.

1.5 Recognition of Income and Expenditure

1.5.1 Items of income and expenditure are recognised on accrual and prudent basis.

1.5.2 The revenue in respect of sale of courseware is recognised on delivery of the material to the customer whereas the revenue from tuition activity is recognised over the period of course programme.

1.5.3 Franchisee registration fees are recognised on execution of the related agreement with the franchisees.

1.5.4 Royalty at rates agreed with the franchisees is recognised on receipt of the related statement of gross collection from the franchisees.

1.5.5 In respect of sale of Software, the revenue arises and is recognised on delivery of the same.

1.6 Research and Development.

Equipment purchased by the Company for Research and Development purposes are capital- ised in the year of acquisition and included in fixed assets. All other revenue expenses in- curred for Research and developmental activities are charged to the Profit and Loss Account for the year.

1.7 Retirement Benefits

Retirement benefits to employees towards Gratuity and Leave Encashment (based on year- end valuation) are accounted for on accrual basis.

1.8 Miscellaneous Expenditure

1.8.1 Preliminary expenses are written off over a period of ten years from the year of incurring such expenditure.

1.8.2 Technical Know-how acquired is written off over the years for which benefits are expected to be derived.

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Mar 31, 2009

1.1 Fixed Assets

Fixed Assets (tangible and intangible) are stated at cost of acquisition. Cost Comprises pur- chase price and attributable cost.

1.2 Depreciation

1.2.1 Depreciation on straight-line basis is provided on tangible Fixed Assets In the manner and at rates as per Schedule XIV of the Companies Act, 1956.

1.2.2 The management has decided to periodically review the useful life of Intangible assets in the form of brand and trade name as also the rights under the franchisee agreements, so as to amortize the related cost on aprudent basis over a few years from the date of acquisition of the related assets.

1.3 Investments

Investments (stated at cost) have been classified as Long Term Investments in accordance with the Accounting Standards - 13 issued by the Institute of Chartered Accountants of India. Gains / Losses on disposal of Investments are recognized as income / expenditure. Dividends are accounted for when received.

1.4 Inventories

The year-end inventory items are valued at lower of cost (determined on the weighted aver- age method) or net realisable value.

1.5 Recognition of Income and Expenditure

1.5.1 Items of income and expenditure are recognised on accrual and prudent basis.

1.5.2 The revenue in respect of sale of courseware is recognised on delivery of the material to the customer whereas the revenue from tuition activity is recognised over the period of course programme.

1.5.3 Franchisee registration fees are recognised on execution of the related agreement with the franchisees.

1.5.4 Royalty at rates agreed with the franchisees is recognised on receipt of the related statement of gross collection from the franchisees.

1.5.5 In respect of sale of Software, the revenue arises and is recognised on delivery of the same.

1.6 Research and Development.

Equipment purchased by the Company for Research and Development purposes are capital- ised in the year of acquisition and included in fixed assets. All other revenue expenses in- curred for Research and developmental activities are charged to the Profit and Loss Account for the year.

1.7 Retirement Benefits

Retirement benefits to employees towards Gratuity and Leave Encashment (based on year- end valuation) are accounted for on accrual basis.

1.8 Foreign Currency Transactions

At the end of the year US Dollar 12428 (Twelve thousand four hundred and twenty eight) were to be received however the company has not translated them at year end rates and resultant gains or losses has not been recognised In Accounts.

1.9 Miscellaneous Expenditure

1.9.1 Preliminary expenses are written off over a period of ten years from the year of incurring such expenditure.

1.9.2 Technical Know-how acquired is written off over the years for which benefits are expected to be derived.