Mar 31, 2015
A. Basis of preparation of financial statements
These financial statements have been prepared to comply in all material respects with the accounting standards notified by Companies (accounting standards) Rules, 2006 (as amended), accounting principles generally accepted in India and the relevant provisions of the Companies act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis. The accountings policies have been consistently applied by the company and are consistent with those used in the previous period.
b. 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 assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management's best knowledge of current events and actions, belief that these estimates are reasonable and prudent, actual results may differ from estimates.
c. Revenue recognition
Incomes/Expenses/Revenues are accounted for on accrual basis. Revenue is recognised to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured.
d. Cash flow
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
e. Fixed assets
Fixed Assets are stated at cost including all incidental expenses incurred for bringing the asset to its current position, less depreciation and impairment loss, if any,
Depreciation has been provided on written down value method in accordance with section 198 of the Companies Act, 2013 at the rates specified in schedule II to the Companies Act, 2013, on proÂrata basis with reference to the period of use of such assets. Assets costing less than Rs. 5,000/- per item are depreciated at 100% in the year of purchase.
g. Amortisation of intangible assets
Intangible Assets as defined in Accounting Standard 26-"Intangible Assets" are valued at cost and amortised as per its useful life and value in use.
h. Impairment of assets
The carrying amounts of Cash Generating Units/Assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount is estimated at the higher of net realisable value and value in use. Impairment loss is recognised wherever carrying amount exceeds the recoverable amount.
i. Earnings per share
Earnings per Share has been computed in accordance with Accounting Standard 20 - "Earning Per Share" by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The earnings considered for ascertaining the company's Earnings per Share is the net profit after tax.
j. Income tax
Tax expense comprises of current tax and deferred tax. Provision for current tax is made for the tax liability payable on taxable income after considering the allowances, deductions and exemptions and disallowances if any determined in accordance with the prevailing tax laws.
Deferred income tax reflect the current period timing difference between taxable income and accounting income for the period and reversal of timing difference of earlier years/period. Deferred tax assets are recognised 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 recognised if there is a virtual certainty that sufficient future taxable income will to available to realise the same.
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.
k. Provisions, contingent liabilities and contingent assets
The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the outflow. 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 estimate.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.
Contingent assets are neither recognised nor disclosed in the financial statements.
Mar 31, 2010
A. Basis For preparation of Financial Statements:
The Financial Statements are presented on going concern basis under the historical cost convention adopting accrual method of accounting and in accordance with the generally accepted Accounting principles and the Companies Act, 1956,.
b. Fixed Assets:
Fixed Assets are stated at the historical cost less accumulated depreciation.
c. License Fees: - Intangible Assets
License Fees represent amount paid for acquiring rights for publishing books. It has to be written off over 10 years starting from financial year 2001 -2002
Depreciation on Fixed Assets is provided on written down value basis at the rates prescribed in schedule XIV to the Companies Act 1956. Asset Purchased during the year .after 30th September are depreciated based on the number of days the asset was put to use. The asset purchased before 30th September are depreciated at 100% of the normal eligible depreciation. Asset costing less than Rs.5000/- are fully depreciated. Depreciation on R&D Assets to the extent not absorbed for the unfinished activities are deferred for future absorption as and when the jobs are completed and sales commences.
Long-term investments are stated at cost and provision if any for decline in value other than temporary are made wherever necessary. Current Investments are stated at lower of cost or market value.
f. Foreign Currency Transactions:
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Current assets and Liabilities denominated in foreign currency are translated at the rate of exchange as at the balance-sheet date. All resulting gains or losses are recognized in the profit and loss account.
(i) RESEARCH AND DEVELOPMENT
a) Fixed assets acquired for R&D is valued at cost.
b) Expenses attributable to R&D are absorbed to the extent of sale realization.
c) Expenses on unfinished R&D jobs are deferred and treated as deferred R&D Expenditure and the same will be absorbed proportionately as and when sales realization takes place.
g. Deferred Tax
Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing differences are expected to crystallize.
h. Deferred Revenue Expenditure
Deferred interest payable on HP Loan, representing unexpired instalments and same will be adjusted to the interest account as and when the instalments are paid in each year.
At each Balance sheet date, the company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment of loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a Pre- tax discount rate that reflects the current market assessment of time value of money and the risks specific to the asset. .Reversal of impairment loss is recognized immediately as income in the profit and loss account.
j Income Recognisation:
As and when the sales invoices are made.
k. Income & Expenditure:
Income & Expenditure: All items of Income and Expenditure shown in the statement having material bearing on the accounts are accounted on accrual basis.
l. Provident Fund:
Eligible employees receive benefit from Provident Fund which is a defined contribution plan. Both the employee and the company make monthly contributions to the Regional Provident Fund Commissioner to a specified percentage of the employees salary.
In the opinion of the management the payment of Gratuity Act 1972 is not attracted since none of the employees has completed the eligible period of service prescribed under the payment of Gratuity Act 1972. The company is working out a Gratuity Plan for the future.