Mar 31, 2018
I General Information:
Walchand PeopleFirst Limited (the âCompany'') is engaged in the business of imparting training in soft skills like leaderships, communication, presentation, etc. The Company had acquired the franchise rights to offer, sell, teach and impart the training methods, techniques and programs developed by Dale Carnegie Training & Associates, U.S.A. to individuals and employees of the corporate.
II Significant accounting policies
1.1 Basis of preparation of financial statements
(a) Compliance with Ind AS
These financial statements are prepared in accordance with Indian Accounting Standards (âInd AS'') notified under Section 133 of the Companies Act, 2013, (âthe Act'') read together with the Companies (Indian Accounting Standards) Rules, 2015.For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with Accounting Standards notified under the Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (âPrevious GAAP''). Detailed explanation on how the transition from previous GAAP to Ind AS has affected the Company''s Balance Sheet, financial performance and cash flows is given under Note 33.These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies set out below. The accounting policies have been applied consistently over all the periods presented in these financial statements.
(b) Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except certain financial assets and liabilities that are measured at fair value.
(c ) Current non-current classification
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Companies Act, 2013.
(d) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make 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 period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.
1.3 Property, Plant and Equipment
Property, Plant and Equipmentâs are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
1.4 Intangible Assets
Expenses incurred on franchisee rights and software is treated as an intangible asset and tested for impairment.
1.5 Investment Properties
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any.
1.6 Depreciation
Depreciation is computed using the Written Down Value Method (âWDVâ) as per the useful life of the asset as prescribed in part C of Schedule II of the Companies Act, 2013 leaving a residuary value of 5% of original cost of the asset.
1.7 Impairment
(a) The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assetâs net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
(b) After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
1.8 Revenue Recognition Training Income
(a) In case of Open Programs, income is recognized at the commencement of the program.
(b) In case of Corporate Programs, appropriate revenue is recognized when confirmed order is received and there is reasonable certainty of completion of the program.
(c) In case of long-term course (i.e. courses more than 6 weeks duration), revenue is accrued over the period of the course.
Other Income
(e) Dividend Revenue is recognized when the shareholdersâ right to receive payment is established by the balance sheet date.
(f) Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
1.9 Foreign Currency Transactions
(a) Functional and presentation currency
The financial statements are presented in Indian rupee (INR), which is Companyâs functional and presentation currency.
(b) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(c) Conversion
Foreign currency monetary items are reported using the closing exchange rate.
(d) Exchange Differences
Exchange differences arising on the settlement or restatement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
1.10 Retirement and other Employee Benefits
(a) Contributions to Provident Fund and Superannuation scheme are defined contribution plans. The Companyâs contribution paid/ payable toward these defined contributions plans are recognized as expenses in the Statement of Profit and Loss during the period to which the employee renders the related service. There are no other obligations other than the contributions payable to respective funds.
(b) Companyâs liability towards gratuity is considered as a Defined Benefit Plan. The present value of the obligations towards Gratuity is determined based on actuarial valuation using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows using a discount rate that is determined by reference to market yields on government securities at the balance sheet date, having maturity periods approximating to the terms of the related obligations.
(c) Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions recognized in Other Comprehensive Income. Other actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.
1.11 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist
of interest and other costs that an entity incurs in connection with the borrowing of funds.
1.12 Segment Reporting Policies
The Company has a single segment namely â Trainingâ. Therefore the Company''s business does not fall under different operating segments as defined by Ind AS - 108
1.13 Leases
Leases where the lessor effectively retains substantially all risk and reward of ownership of the leasehold assets are classified as operating lease. Operating lease payments are recognized as an expense in the statement of profit and loss on straight-line basis over the lease term unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
1.14 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders & the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
1.15 Taxes
(a) Tax expense comprises of current and deferred tax.
(b) Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. Tax rates and tax laws used to compute amount are those that are enacted or substantially enacted at the balance sheet date.
(c) 1. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
2. Deferred Tax liabilities are recognized for all timing differences.
3. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
4. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.
5. The carrying amount of deferred tax assets are 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 realized. 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.
(d) Minimum Alternate Tax credit is recognized as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.
1.16 Provisions and Contingencies
(a) 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. At the end of each reporting period, provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at a future date. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense and are determined based on best 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 best estimates.
(b) 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 obligation.
(c) Contingent liabilities are disclosed, unless the possibility of an outflow of resources embodying the economic benefit is remote.
1.17 Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investment with an original maturity of 3 months or less.
1.18 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial Assets
Initial recognition and measurement:
The Company recognizes a financial asset in its Balance Sheet when it becomes party to the contractual provisions of the instrument. All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition. If the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input).In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately and recognized as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial asset.
Subsequent measurement:
The Company classifies its financial assets into the following categories:
i. Financial assets measured at amortized cost.
A financial asset is measured at the amortized cost if both the following conditions are met:
a) The Companyâs business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows, and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company.
ii. Financial assets measured at fair value through other comprehensive income (FVTOCI)Where the Companyâs management makes an irrevocable choice on initial recognition to present fair value gains and losses on specific equity investments in other comprehensive income (Currently no such choice made), there is no subsequent reclassification, on sale or otherwise, of fair value gains and losses to the Statement of Profit and Loss.
iii. Financial assets measured at fair value through profit or loss (FVTPL)A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above. This is a residual category applied to all other Financial assets of the Company.
Derecognition:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Companyâs Balance Sheet) when:
i. The contractual rights to cash flows from the financial asset expires;
ii. The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all the risks and rewards of ownership of the financial asset.
Impairment of financial assets :
The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
(b) Financial Liabilities :
Initial recognition and measurement:
The Company recognizes a financial liability in its Balance Sheet when it becomes party to the contractual provisions of the instrument. All financial liabilities are recognized initially at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability. Where the fair value of a financial liability at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss at initial recognition if the fair value is determined through a quoted market price in an active market for an identical asset (i.e. level 1 input) or through a valuation technique that uses data from observable markets (i.e. level 2 input). In case the fair value is not determined using a level 1 or level 2 input as mentioned above, the difference between the fair value and transaction price is deferred appropriately and recognized as a gain or loss in the Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in factor that market participants take into account when pricing the financial liability.
Subsequent measurement:
All financial liabilities of the Company are subsequently measured at amortized cost.
Derecognition:
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
1.19 Standards issued but not yet effective :
In March 2018, the Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amended Rules, 2018 (âamended rulesâ). As per the amended rules, Ind AS 115 âRevenue from contracts with customersâ supersedes Ind AS 11, âConstruction contractsâ and Ind AS 18, âRevenueâ and is applicable for all accounting periods commencing on or after 1 April 2018.
IndAS115:
Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled. The new revenue standard is applicable to the Company from 1 April 2018.
The Company is evaluating the requirement of the amendment and the impact on the financial statements.
Equity dividend of Rs. Nil for the year ended 31st March 2018 (Rs. Nil for the year ended 31st March 2017 and Rs. 1.25 per share for the year ended 31st March 2016 subject to the approval of shareholders in the ensuing annual general meeting.
15.3 Holding company shareholding details:-
Out of the 29,03,890 Equity shares, 15,96,747 Equity Shares are held by the holding company.
(Previous year out of 29,03,890 Equity shares, 15,88,234 Equity Shares are held by the holding company).
Description of nature and purpose of each reserve :
Capital Redemption reserve
Capital redemption reserve created at the time of redemption of Preference Shares.
Securities Premium
Securities premium is used to record the premium on issue of shares. These reserve is utilised in accordance with the provisions of the Act.
General reserve
General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.
Disclosures under Micro, Small and Medium Enterprises Act
Company has sent letters to suppliers to confirm whether they are covered under Micro, Small and Medium Enterprises Act, 2006 as well as they have filed required memorandum with the prescribed authorities. This information is required to be disclosed under the Micro, Small and Medium enterprises development Act,2006 and has been determined to the extent such parties have been identified on the basis of the information available with the company and have been relied upon by the auditors.
Mar 31, 2017
1A General Information:
Walchand PeopleFirst Limited (the âcompany'') is engaged in the business of imparting training in soft skills like leaderships, communication, presentation, etc. The Company had acquired the franchise rights to offer, sell, teach and impart the training methods, techniques and programs developed by Dale Carnegie Training & Associates, U.S.A. to individuals and employees of the corporate.
1 Significant accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 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 Company has applied the accounting policies which are consistent with those used in the previous year.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make 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 period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.
1.3 Fixed Assets
(a) Tangible Assets
Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
(b) Intangible Assets
Expenses incurred on franchisee rights and software is treated as an intangible asset and is amortized over a period of 5 years from the date of incurring such expenditure on pro-rata basis.
1.4 Depreciation
Depreciation is computed using the Written Down Value Method (âWDVâ) as per the useful life of the asset as prescribed in part C of Schedule II of the Companies Act, 2013 leaving a residuary value of 5% of original cost of the asset.
1.5 Impairment
(a) The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
(b) After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
1.6 Revenue Recognition Training Income
(a) In case of Open Programs, income is recognized at the commencement of the program.
(b) In case of Corporate Programs, appropriate revenue is recognized when confirmed order is received and there is reasonable certainty of completion of the program.
(c) In case of long-term course (i.e. courses more than 6 weeks duration), revenue is accrued over the period of the course.
(d) With effect from 1st April 2015, the revenue recognition policy in case of Corporate programs has been revised. As a result income from operation is lower by Rs 57 Lakhs for the previous year ended 31st March 2016. Other Income
(e) Dividend Revenue is recognized when the shareholders'' right to receive payment is established by the balance sheet date.
(f) Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
1.7 Foreign Currency Transactions
(a) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(b) Conversion
Foreign currency monetary items are reported using the closing exchange rate.
(c) Exchange Differences
Exchange differences arising on the settlement or restatement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
1.8 Investments
(a) Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.
(b) Current investments are carried at lower of cost and fair value determined on an individual investment basis.
(c) Noncurrent (Long-term) investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.
(d) Carrying amount of an individual investment is determined on the basis of the average carrying amount of the total holding of the investment.
1.9 Retirement and other Employee Benefits
(a) Contributions to Provident Fund and Superannuation scheme are defined contribution plans. The company''s contribution paid/ payable toward these defined contributions plans are recognized as expenses in the Statement of Profit and Loss during the period to which the employee renders the related service. There are no other obligations other than the contributions payable to respective funds.
(b) Company''s liability towards gratuity is considered as a Defined Benefit Plan. The present value of the obligations towards Gratuity is determined based on actuarial valuation using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows using a discount rate that is determined by reference to market yields on government securities at the balance sheet date, having maturity periods approximating to the terms of the related obligations.
(c) Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.
1.10 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
1.11 Segment Reporting Policies
The company has a single segment namely â Trainingâ. Therefore the company''s business does not fall under different business segments as defined by Accounting Standard -17.
1.12 Leases
Leases where the lessor effectively retains substantially all risk and reward of ownership of the leasehold assets are classified as operating lease. Operating lease payments are recognized as an expense in the statement of profit and loss on straight-line basis over the lease term.
1.13 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares). For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders & the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
1.14 Taxes
(a) Tax expense comprises of current and deferred tax.
(b) Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. Tax rates and tax laws used to compute amount are those that are enacted or substantially enacted at the balance sheet date.
(c) 1. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
2. Deferred Tax liabilities are recognized for all timing differences.
3. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
4. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.
5. The carrying amount of deferred tax assets are 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 realized. 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.
(d) 1. Minimum Alternate Tax (MAT) paid in a year is charged to statement of Profit and loss as current tax.
2. MAT credit is recognized, as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.
3. In the year in which company recognizes the Minimum Alternative tax (MAT) credit as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.
1.15 Provisions and Contingencies
(a) 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 are not discounted to its present value and are determined based on best 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 best estimates.
(b) 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 obligation.
(c) Contingent liabilities are disclosed, unless the possibility of an outflow of resources embodying the economic benefit is remote.
(d) Contingent assets are not recognized.
1.16 Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investment with an original maturity of 3 months or less.
1.17 Figures for previous year figures have been regrouped/ rearranged wherever necessary to conform to the current years classification.
Mar 31, 2016
1A General Information:
Walchand PeopleFirst Limited (the âcompanyâ) is engaged in the business to impart training in soft skills like leaderships, communication, presentation, etc. The Company had acquired the franchise rights to offer, sell, teach and impart the training methods, techniques and programs developed by Dale Carnegie Training & Associates, U.S.A. to individual and employees of the corporate.
1 Significant accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 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 Company has consistently applied the accounting policies which are consistent with those used in the previous year.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make 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 period. Although these estimates are based upon managementâs best knowledge of current events and actions, actual results could differ from these estimates.
1.3 Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
1.4 Depreciation
Depreciation is computed using the Written Down Value Method (âWDVâ) as per the useful life of the asset as prescribed in part C of Schedule II of the Companies Act, 2013 leaving a residuary value of 5% of original cost of the asset.
1.5 Impairment
(a) The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assetâs net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
(b) After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
1.6 Intangible Assets
Amount paid as franchisee rights and software is treated as an intangible asset and is amortized over a period of 5 years from the date of incurring such expenditure on pro-rata basis.
1.7 Revenue Recognition Training Income
(a) In case of Open Programs, income is recognized at the commencement of the program.
(b) In case of Corporate Programs, appropriate revenue is recognized when confirmed order is received and there is reasonable certainty of completion of the program.
(c) In case of long-term course (i.e. courses more than 6 weeks duration), revenue is accrued over the period of the course.
(d) With effect from 1st April 2015, the revenue recognition policy in case of Corporate programs has been revised. The revenue is now recognized only after the delivery of the program instead of on the basis of reasonable certainty of the completion as done earlier. As a result of this change, the income from operation is lower by Rs 57 Lacs for the year ended 31st March 2016.
Other Income
(e) Dividend Revenue is recognized when the shareholdersâ right to receive payment is established by the balance sheet date.
(f) Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
1.8 Foreign Currency Transactions
(a) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(b) Conversion
Foreign currency monetary items are reported using the closing exchange rate.
(c) Exchange Differences
Exchange differences arising on the settlement or restatement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
1.9 Investments â¢
(a) Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.
(b) Current investments are carried at lower of cost and fair value determined on an individual investment basis.
(d) Carrying amount of an individual investment is determined on the basis of the average carrying amount of the total holding of the investment.
1.10 Retirement and other Employee Benefits
(a) Contributions to Provident Fund and Superannuation scheme are defined contribution plans. The companyâs contribution paid/ payable toward these defined contributions plans are recognized as expenses in the Statement of Profit and Loss during the period to which the employee renders the related service. There are no other obligations other than the contributions payable to respective funds.
(b) Companyâs liability towards gratuity is considered as a Defined Benefit Plan. The present value of the obligations towards Gratuity is determined based on actuarial valuation using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows using a discount rate that is determined by reference to market yields on government securities at the balance sheet date, having maturity periods approximating to the terms of the related obligations.
(c) Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.
1.11 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
1.12 Segment Reporting Policies
The company has a single segment namely â Trainingâ. Therefore the companyâs business does not fall under different business segments as defined by Accounting Standard -17.
1.13 Leases
Leases where the lessor effectively retains substantially all risk and reward of ownership of the leasehold assets are classified as operating lease. Operating lease payments are recognized as an expense in the profit and loss account on straight-line basis over the lease term.
1.14 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders & the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
1.15 Taxes .
(a) Tax expense comprises of current and deferred tax.
(b) Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. Tax rates and tax laws used to compute amount are those that are enacted or substantially enacted at the balance sheet date.
(c) 1. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
2. Deferred Tax liabilities are recognized for all timing differences.
3. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
4. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.
(d) At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets 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 assets can be realized.
(e) The carrying amount of deferred tax assets are 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 realized. 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.
(f) 1. Minimum Alternate Tax (MAT) paid in a year is charged to statement of Profit and loss as current tax.
2. MAT credit is recognized, as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward.
3. In the year in which company recognizes the Minimum Alternative tax (MAT) credit as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.
1.16 Provisions and Contingencies
(a) A provision is recognized when an enterprise has a present obligation as a result of past event; 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 are not discounted to its present value and are determined based on best 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 best estimates.
(b) 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 obligation.
(c) Contingent liabilities are disclosed, unless the possibility of an outflow of resources embodying the economic benefit is remote.
(d) Contingent assets are not recognized.
1.17 Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investment with an original maturity of 3 months or less.
1.18 Figures for previous year figures have been regrouped / rearranged wherever necessary to conform to the current years classification.
Mar 31, 2015
1.1 Basis of preparation of financial statements
The financial statements have been prepared to comply in all material
respects with the Accounting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 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 Company has consistently applied the accounting
policies which are consis tent with those used in the previous year.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make 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
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
1.3 Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
1.4 Depreciation
Depreciation is computed using the Written Down Value Method
("WDV") as per the useful life of the asset as prescribed in part C
of Schedule II of the Companies Act, 2013 leaving a residuary value of
5% of original cost of the asset.
1.5 Impairment
(a) The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
(b) After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances. However the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment.
1.6 Intangible Assets
Amount paid as franchisee rights and software is treated as an
intangible asset and is amortized over a period of 5 years from the
date of incurring such expenditure on pro-rata basis.
1.7 Revenue Recognition
Training Income
(a) In case of Open Programs, income is recognized at the commencement
of the program.
(b) In case of Corporate Programs, appropriate revenue is recognized
when confirmed order is received and there is reasonable certainty of
completion of the program.
(c) In case of long-term course (i.e. courses more than 6 weeks
duration), revenue is accrued over the period of the course.
Other Income
(d) Dividend Revenue is recognized when the shareholders' right to
receive payment is established by the balance sheet date.
(e) Interest is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
1.8 Foreign Currency Transactions
(a) Initial_Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(b) Conversion
Foreign currency monetary items are reported using the closing exchange
rate.
(c) Exchange Differences
Exchange differences arising on the settlement or restatement of
monetary items at rates different from those at which they were
initially recorded during the year, or reported in previous financial
statements, are recognized as income or as expenses in the year in
which they arise.
1.9 Investments
(a) Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long-term investments.
(b) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
(c) Non current (Long-term) investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments.
(d) Carrying amount of an individual investment is determined on the
basis of the average carrying amount of the total holding of the
investment.
1.10Retirement and other Employee Benefits
(a) Contributions to Provident Fund and Superannuation scheme are
defined contribution plans. The company's contribution paid/ payable
toward these defined contributions plans are recognised as expenses in
the Statement of Profit and Loss during the period to which the
employee renders the related service. There are no other obligations
other than the contributions payable to repsective funds.
(b) Company's liability towards gratuity is considered as a Defined
Benefit Plan. The present value of the obligations towards Gratuity is
determined based on acturial valuation using the projected unit credit
method. The obligation is measured at the present value of estimated
future cash flows using a discount rate that is determined by reference
to market yields on goverment securities at the balance sheet date,
having maturity periods approximating to the terms of the related
obligations.
(c) Actuarial gains and losses are recognised in full in the period in
which they occur in the statement of profit and loss.
1.11 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs
are expensed in the period they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the
borrowing of funds.
1.12Segment Reporting Policies
The company has a single segment namely " Training". Therefore the
company's business does not fall under different business segments as
defined by Accounting Standard -17.
1.13 Leases
Leases where the lessor effectively retains substantially all risk and
reward of ownership of the leasehold assets are classified as operating
lease. Operating lease payments are recognized as an expense in the
profit and loss account on straight-line basis over the lease term.
1.14 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares). For the purpose of calculating diluted
earning per share, the net profit or loss for the period attributable
to equity shareholders & the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
1.15 Taxes
(a) Tax expense comprises of current and deferred tax.
(b) Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income-tax Act, 1961 enacted
in India. Tax rates and tax laws used to compute amount are those that
are enacted or substantially enacted at the balance sheet date.
(c) 1. Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or substanti
-vely enacted at the balance sheet date.
2. Deferred Tax liabilities are recognised for all timing differences.
3. Deferred tax assets are recognised for deductible timing differences
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognised only if there is virtual certainty supported by convincing
evidence that they can be realised against future taxable profits.
4. Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws.
(d) At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets 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 assets can be realised.
(e) The carrying amount of deferred tax assets are 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.
(f) 1. Minimum Alternate Tax (MAT) paid in a year is charged to
statement of Profit and loss as current tax.
2. MAT credit is recognised, as an asset only when and to the extent
there is convincing evidence that the company will pay normal income
tax during the specified period i.e. the period for which MAT credit is
allowed to be carried forward.
3. In the year in which company recognises the Minimum Alternative tax
(MAT) credit as an asset in accordance with the recommendations
contained in guidance Note issued by the Institute of Chartered
Accountants of India, the said asset is created by way of a credit to
the statement of profit and loss and shown as MAT Credit Entitlement.
The Company reviews the same at each balance sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
Income Tax during the specified period.
1.16 Provisions and Contingencies
(a) A provision is recognised when an enterprise has a present
obligation as a result of past event; 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 are not discounted to
its present value and are determined based on best 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 best
estimates.
(b) Contingent liablity 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 recognised
because it is not probable that an outflow of resources will be
required to settle obligation.
(c) Contingent liabilities are disclosed, unless the possibility of an
outflow of resources embodying the economic benefit is remote.
(d) Contingent assets are not recognised.
1.17Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investment with an
original maturity of 3 months or less.
1.18 Figures for previous year figures have been regrouped / rearranged
wherever necessary to conform to the current years classification.
Mar 31, 2014
1.1 Basis of preparation of financial statements
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by 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.
The Company has consistently applied the accounting policies and are
consistent with those used in the previous year.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make 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
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
1.3 Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
1.4 Depreciation
Depreciation is provided using the written down value as per the rates
prescribed under schedule XIV of the Companies Act, 1956. Fixed assets
costing individually upto Rs. 5,000 are depreciated fully in the year
of purchase.
1.5 Impairment
(a) The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
(b) After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances.
However the carrying value after reversal is not increased beyond the
carrying value that would have prevailed by charging usual depreciation
if there was no impairment.
1.6 Intangible Assets
Amount paid as franchisee rights and software is treated as an
intangible asset and is amortized over a period of 5 years from the
date of incurring such expenditure on pro-rata basis.
1.7 Revenue Recognition Training Income
(a) In case of Open Programs, income is recognized at the commencement
of the program.
(b) In case of Corporate Programs, appropriate revenue is recognized
when confirmed order is received and there is reasonable certainty of
completion of the program.
(c) In case of long-term course (i.e. courses more than 6 weeks
duration), revenue is accrued over the period of the course.
Other Income
(d) Dividend Revenue is recognized when the shareholders'' right to
receive payment is established by the balance sheet date.
(e) Interest is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
1.8 Foreign Currency Transactions
(a) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(b) Conversion
Foreign currency monetary items are reported using the closing rate.
(c) Exchange Differences
Exchange differences arising on the settlement or restatement of
monetary items at rates different from those at which they were
initially recorded during the year, or reported in previous financial
statements, are recognized as income or as expenses in the year in
which they arise.
1.9 Investments
(a) Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long-term investments.
(b) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
(c) Non current (Long-term) investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments.
(d) Carrying amount of an individual investment is determined on the
basis of the average carrying amount of the total holding of the
investment.
1.10Retirement and other Employee Benefits
(a) Contributions to Provident Fund and Superannuation scheme are
defined contribution plans. The company''s contribution paid/ payable
toward these defined contributions plans are recognised as expenses in
the Statement of Profit and Loss during the period to which the
employee renders the related service. There are no other obligations
other than the contributions payable to repsective funds.
(b) Company''s liability towards gratuity is considered as a Defined
Benefit Plan. The present value of the obligations towards Gratuity is
determined based on acturial valuation using the projected unit credit
method. The obligation is measured at the present value of estimated
future cash flows using a discount rate that is determined by reference
to market yields on goverment securities at the balance sheet date,
having maturity periods approximating to the terms of the related
obligations. (c) Actuarial gains and losses are recognised in full in
the period in which they occur in the statement of profit and loss.
1.11 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing
of funds.
1.12 Segment Reporting Policies
The company has a single segment namely " Training". Therefore the
company''s business does not fall under different business segments as
defined by Accounting Standard -17.
1.13 Leases
Leases where the lesser effectively retains substantially all risk and
reward of ownership of the leasehold assets are classified as operating
lease. Operating lease payments are recognized as an expense in the
profit and loss account on straight-line basis over the lease term.
1.14 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares).
1.15 Taxes
(a) Tax expense comprises of current and deferred tax.
(b) Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income-tax Act, 1961 enacted
in India. Tax rates and tax laws used to compute amount are those that
are enacted or substantially enacted at the balance sheet date.
(c) 1. Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
2. Deferred Tax liabilities are recognised for all timing differences.
3. Deferred tax assets are recognised for deductible timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realised. In situations where the company
has unabsorbed depreciation or carry for ward tax losses, all deferred
tax assets are recognised only if there is virtual certainty supported
by convincing evidence that they can be realised against future taxable
profits.
4. Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws.
(d) At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets 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 assets can be realised.
(e) The carrying amount of deferred tax assets are 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.
(f) 1. Minimum Alternate Tax (MAT) paid in a year is charged to
statement of Profit and loss as current tax.
2. MAT credit is recognised, as an asset only when and to the extent
there is convincing evidence that the company will pay normal income
tax during the specified period i.e. the period for which MAT credit is
allowed to be carried forward.
3. In the year in which company recognises the Minimum Alternative tax
(MAT) credit as an asset in accordance with the recommendations
contained in guidance Note issued by the Institute of Chartered
Accountants of India, the said asset is created by way of a credit to
the statement of profit and loss and shown as MAT Credit Entitlement.
The Company reviews the same at each balance sheet date and writes down
the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal
Income Tax during the specified period.
1.16 Provisions and Contingencies
(a) A provision is recognised when an enterprise has a present
obligation as a result of past event; 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 are not discounted to
its present value and are determined based on best 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 best
estimates.
(b) Contingent liablity 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 recognised
because it is not probable that an outflow of resources will be
required to settle obligation.
(c) Contingent liabilities are disclosed, unless the possibility of an
outflow of resources embodying the economic benefit is remote.
(d) Contingent assets are not recognised.
1.17 Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investment with an
original maturity of 3 months or less.
1.18 Figures for previous year figures have been regrouped / rearranged
wherever necessary.
2.2 Of the above Equity shares :
(a) 11,666 Shares were issued in 1961 by converting 35,000 Promoters''
Shares of Rs. 3.75 each (Rs. 1,31,250) into 11,666 Shares of Rs.11.25
each and by utilising Rs. 2,18,730 from Capital Reserves for issue of
11,666 Shares of Rs. 18.74936 each and consolidating the two.
(b) 43,333 Shares of Rs. 30 each were issued in 1961 as Bonus Shares by
utilising Capital Reserve of Rs. 12,99,990.
(c) During 1966, the face value of 1,71,675 Equity Shares was increased
from Rs. 30 each to Rs. 50 each by utilising Rs.34,33,500 from Reserve
for Investments and Advances. Further 34,335 bonus Equity Shares of Rs.
50 each were issued as fully paid by capitalisation of Rs. 17,16,750
out of General Reserve.
(d) During 1970, the face value of equity Shares was increased from Rs.
50 to Rs. 60 per share by capitalising Rs. 20,60,100 from General
Reserve.
(e) During 1984, the face value of Equity Shares was increased from Rs.
60 to Rs. 100 per share by capitalising Rs. 82,40,400 from General
Reserve.
(f) During 1994-95, 78,880 Equity Shares of Rs. 100 each were issued to
the promoters on the preferential basis.
(g) During 2009-10, 5499 Equity Shares of Rs 100 each were issued to
one of the shareholder of the transferor company - Walchand TalentFirst
Limited, on account of the scheme of amalgamation.
(h) During 2011-12, 2,90,389 Equity shares of Rs 100 each were
subdivided into 29,03,890 shares of Rs 10/ each.
2.4 Terms and rights
The company has only one class of equity shares having a par value of
Rs 10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.During the
year ended 31st March, 2014 the amount of dividend per share
recommended by the Board of Directors to equity shareholders was Rs
NIL. (31st March,2013 - Re 1).
2.5 Holding company share holding details:- Out of the 29,03,890 Equity
shares, 15,05,974 Equity Shares are held by the holding
company.(Previous year out of 29,03,890 Equity shares, 15,01,556 Equity
Shares are held by the holding company).
Disclosures under Micro, Small and Medium Enterprises Act
Company has sent letters to suppliers to confirm whether they are
covered under Micro, Small and Medium Enterprises Act, 2006 as well as
they have filed required memorandum with the prescribed authorities.
Out of the letters send to the parties, no confirmations have been
received till the date of finalization of Balance Sheet. This
information is required to be disclosed under the Micro, Small and
Medium enterprises development Act,2006 and has been determined to the
extent such parties have been identified on the basis of the
information available with the company and have been relied upon by the
auditors.
Mar 31, 2013
1.1 Basis of preparation of financial statements
The financial statements have been prepared to comply in al1 material
respects with the Accounting Standards notified by 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
except in case of assets for which provision for impairment is made and
revaluation is carried out. The Company has consistently applied the
accountings policies and are consistent with those used in the previous
year. The company has also reclassified the previous year figures in
accordance with the requirements applicable in the current year.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make 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
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
1.3 Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
1.4 Depreciation
Depreciation is provided using the written down value as per the rates
prescribed under schedule XTV of the Companies Act, 1956. Fixed assets
costing individually upto Rs. 5,000 are depreciated fully in the 3''ear
of purchase.
* Based on the remaining useful lives of the certain assets purchased
during the year, depreciation is charged at a higher rate than the rate
prescribed under the Schedule XTV.
1.5 Impairment
(a) The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital. (b) After impairment, depreciation is provided nn the
revised carrying amount of the asset over its remaining useful life. A
previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However the carrying value
after reversal is not increased beyond the carrying value that would
have prevailed by charging usual depreciation if there was no
impairment.
1.6 Intangible Assets
Amount paid as franchisee lights and software is treated as an
intangible asset and is amortized over a period of 5 years from the
date of incurring such expenditure on pro-rata basis.
1.7 Revenue Recognition
(a) In case cf Open Programs, income is recognized at the commencement
of the program.
(b) In case of Corporate Programs, appropriate revenue is recognized
when confirmed order is received and there is reasonable certainty of
completion of the program.
(c) In case of long-term lourse u.e. courses mme than 8 weeks
duration), revenue is accrued over the period of the course.
(d) Dividend Revenue is recognized when the shareholders'' right to
receive payment is established by the balance sheet date.
(e) Interest is recognized o.i a time proportion basis taking into
account the amount outstanding and the rate applicable.
1.8 Foreign Currency Transactions (a) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount die exchange rate between
-he reporting eurrmey and the foreign currency at the date cf the
transaction.
1.9 Investments
(a) Investments that r-re readily "sizable and intended to be held for
not mere than a year are classified as current investments. Ad other
investments ire classified as long-term investments.
(b) Current investments -- carried at, lower of cost and fair value
determined on an individual investment basis. Non current (Long-tern'')
investments u''e carried at cost. However, provision for dimmutioa in
value is made to recognize i decline other than temporary in the value
of the investments.
(d) Carrying amount of an individual mvestmert is determined on the
basis of the average carrying amount cf the total holding of the
investment.
1.10 Retirement and other Employee Benefits
(a) Retirement benefits in the form of Provident Fund and
Superannuation Fund are defined contribution schemes and the
contributions are charged to the Profit and Loss Account of the year
when the contributions to the respective funds are due. There are no
other obligations other than the contribution payable to the respective
funds.
(b) Gratuity liabilities are defined benefit obligations and are
provided for on the basis of an actuarial valuation made at the «md cf
each financial year. The company makes contribution to the Employees''
Group -cum-life
Assurance scheme of the L.I.C. India. (c) Actuarial gains/losses are
immediately taken to profit and loss account and are not deferred.
1.11 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing
of funds.
L12 Segment Reporting Policies
(a) Identification of segments:
The Company''s operating businesses are organized and managed separately
according to the nature of services provided, with each segment
representing a strategic business unit that offers different products
and serves different markets.
(b) Allocation of common costs :
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
(c) Unallocated items :
Includes general corporate income and expense items that are not
allocated to any business segment.
(d) Segment Policies:
The company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole.
1.13 Leases
Leases where the lesser effectively retains substantially all risk and
reward of ownership of the leasehold assets are classified as operating
lease. Operating lease payments are recognized as an expense in the
profit and loss account on straight-line basis over the lease term.
1.14 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares).
L15 Taxes
(a) Tax expense comprises of current and deferred tax.
(b) Current income tax is measured at tiie amount expectec to be paid
to the tax authorities in accordance with the Income-tax Act, 196i
enacted in India.
(c) Deferred income taxes reflect the impact, of current year tuning
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
and deferred tax liabilities are offset, if a legally enforceable right
exists to set off current tax assets against current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to the
taxes on income levied by same governing taxation laws. Deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realised
against future taxable profits.
(d) At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets 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 assets can be realised.
(e) The carrying amount of deferred tax assets are 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.
(f) MAT credit is recognised, as an asset only when and to the extent
there is convincing evidence that the company will pay normal income
tax luring the specified period. In the year in which the Minimum
Alternative tax (MAT) credit becomes eligible to be recognized as an
asset in accordance with the recommendations contained in guidance Note
issued by the Institute of Chartered Accountants of India, the said
asset is created by way of a credit to the profit and loss account and
shown as MAT Credit Entitlement. The Company reviews the same at each
balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there 13 no longer convincing evidence to the
effect that Company will pay normal Income Tax during the specified
period.
1.16 Provisions and Contingencies
(a) A provision is recognised when an enterprise has a present
obligation as a result of past event; 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 are not discounted to
its present value and are determined based on best 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 best
estimates.
(b) Contingent liabilities are disclosed, unless the possibility of an
outflow of resources embodying the economic benefit is remote.
(c.) Contingent assets are not recognised.
1.17Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investment with an
original maturity of 3 months or less.
Mar 31, 2012
1.1 Basis of preparation of financial statements
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by 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
except in case of assets for which provision for impairment is made and
revaluation is carried out. The Company has consistently applied the
accountings policies and are consistent with those used in the previous
year. During the year ended 31st March,2012 the revised Schedule VI
notified under the Companies Act,1956 has become applicable to the
company, for preparation and presentation of it's financial
statements. The company has also reclassified the previous year figures
in accordance with the requirements applicable in the current year.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make 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
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
1.3 Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
1.4 Depreciation
Depreciation is provided using the written down value as per the rates
prescribed under schedule XIV of the Companies Act, 1956. Fixed assets
costing individually upto Rs. 5,000 are depreciated fully in the year
of purchase.
* Based on the remaining useful lives of the certain assets purchased
during the year, depreciation is charged at a higher rate than the rate
prescribed under the Schedule XIV.
1.5 Impairment
(a) The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
(b) After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances. However the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment.
1.6 Intangible Assets
Amount paid as franchisee rights and software is treated as an
intangible asset and is amortized over a period of 5 years from the
date of incurring such expenditure on pro-rata basis.
1.7 Revenue Recognition
(a) In case of Open Programs, income is recognized at the commencement
of the program.
(b) In case of Corporate Programs, appropriate revenue is recognized
when confirmed order is received and there is reasonable certainty of
completion of the program.
(c) In case of long-term course (i.e. courses more than 6 weeks
duration), revenue is accrued over the period of the course.
(d) Dividend Revenue is recognized when the shareholders' right to
receive payment is established by the balance sheet date.
(e) Interest is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
1.8 Foreign Currency Transactions
(a) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(b) Conversion
Foreign currency monetary items are reported using the closing rate.
(c) Exchange Differences
Exchange differences arising on the settlement of monetary items at
rates different from those at which they were initially recorded during
the year, or reported in previous financial statements, are recognized
as income or as expenses in the year in which they arise.
1.9 Investments
(a) Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long-term investments.
(b) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
(c) Non current (Long-term) investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other
than temporary in the value of the investments.
(d) Carrying amount of an individual investment is determined on the
basis of the average carrying amount of the total holding of the
investment.
1.10 Retirement and other Employee Benefits
(a) Retirement benefits in the form of Provident Fund and
Superannuation Fund are defined contribution schemes and the
contributions are charged to the Profit and Loss Account of the year
when the contributions to the respective funds are due. There are no
other obligations other than the contribution payable to the respective
funds.
(b) Gratuity liabilities are defined benefit obligations and are
provided for on the basis of an actuarial valuation made at the end of
each financial year. The company makes contribution to the Employees'
Group -cum-life Assurance scheme of the L.I.C. India.
(c) Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
1.11 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing
of funds.
1.12 Segment Reporting Policies (a) Identification of segments:
The Company's operating businesses are organized and managed
separately according to the nature of services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets.
(b) Allocation of common costs :
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
(c) Unallocated items :
Includes general corporate income and expense items that are not
allocated to any business segment.
(d) Segment Policies:
The company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole.
1.13 Leases
Leases where the lesser effectively retains substantially all risk and
reward of ownership of the leasehold assets are classified as operating
lease. Operating lease payments are recognized as an expense in the
profit and loss account on straight-line basis over the lease term.
1.14Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares).
1.15 Taxes
(a) Tax expense comprises of current and deferred tax.
(b) Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income-tax Act, 1961 enacted
in India.
(c) Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
and deferred tax liabilities are offset, if a legally enforceable right
exists to set off current tax assets against current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to the
taxes on income levied by same governing taxation laws. Deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realised
against future taxable profits.
(d) At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets 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 assets can be realised.
(e) The carrying amount of deferred tax assets are 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.
(f) MAT credit is recognised, as an asset only when and to the extent
there is convincing evidence that the company will pay normal income
tax during the specified period. In the year in which the Minimum
Alternative tax (MAT) credit becomes eligible to be recognized as an
asset in accordance with the recommendations contained in guidance Note
issued by the Institute of Chartered Accountants of India, the said
asset is created by way of a credit to the profit and loss account and
shown as MAT Credit Entitlement. The Company reviews the same at each
balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the
effect that Company will pay normal Income Tax during the specified
period.
1.16 Provisions and Contingencies
(a) A provision is recognised when an enterprise has a present
obligation as a result of past event; 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 are not discounted to
its present value and are determined based on best 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 best
estimates.
(b) Contingent liabilities are disclosed, unless the possibility of an
outflow of resources embodying the economic benefit is remote.
(c) Contingent assets are not provided.
1.17 Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand.
Mar 31, 2011
1) Basis of Preparation
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by 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
except in case of assets for which provision for impairment is made and
revaluation is carried out. The Company has consistently applied the
accountings policies and are consistent with those used in the previous
year.
2) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make 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
period. Although these estimates are based upon managements best
knowledge of current events and actions, actual results could differ
from these estimates.
3) Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
4) Depreciation
Depreciation is provided using the Written down value as per the rates
prescribed under schedule XIV of the Companies Act, 1956. Fixed assets
costing individually upto Rs. 5,000 are depreciated fully in the year
of purchase.
5) Impairment
a) The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
b) After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances. However the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment.
6) Intangible Assets
Amount paid as franchisee rights and software is treated as an
intangible asset and is amortized over a period of 5 years from the
date of incurring such expenditure on pro-rata basis.
7) Revenue Recognition
a) In case of Open Programs, income is recognized at the commencement
of the program.
b) In case of Corporate Programs, appropriate revenue is recognized
when confirmed order is received and there is reasonable certainty of
completion of the program.
c) In case of long-term course (i.e. courses more than 6 weeks
duration), revenue is accrued over the period of the course.
d) Dividend Revenue is recognized when the shareholders right to
receive payment is established by the balance sheet date.
e) Interest is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
8) Foreign Currency Transactions
(i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items at
rates different from those at which they were initially recorded during
the year, or reported in previous financial statements, are recognized
as income or as expenses in the year in which they arise.
9) Investments
a) Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long-term investments.
b) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
c) Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
d) Carrying amount of an individual investment is determined on the
basis of the average carrying amount of the total holding of the
investment.
10) Retirement and other Employee Benefits
a) Retirement benefits in the form of Provident Fund and Superannuation
Fund are defined contribution schemes and the contributions are charged
to the Profit and Loss Account of the year when the contributions to
the respective funds are due. There are no other obligations other than
the contribution payable to the respective funds.
b) Gratuity liabilities are defined benefit obligations and are
provided for on the basis of an actuarial valuation made at the end of
each financial year. The company makes contribution to the Employees
Group -cum-life Assurance scheme of the L.I.C. India.
c) Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
11) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing
of funds.
12) Segment Reporting Policies
a) Identification of segments:
The Companys operating businesses are organized and managed separately
according to the nature of services
provided, with each segment representing a strategic business unit that
offers different products and serves different markets.
b) Allocation of common costs :
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
c) Unallocated items :
Includes general corporate income and expense items that are not
allocated to any business segment.
d) Segment Policies:
The company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole.
13) Leases
Leases where the lesser effectively retains substantially all risk and
reward of ownership of the leasehold assets are classified as operating
lease. Operating lease payments are recognized as an expense in the
profit and loss account on straight-line basis over the lease term.
14) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares).
15) Taxes
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 enacted in
India.
Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
and deferred tax liabilities are offset, if a legally enforceable right
exists to set off current tax assets against current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to the
taxes on income levied by same governing taxation laws. Deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realised
against future taxable profits. At each balance sheet date the Company
re-assesses unrecognised deferred tax assets. It recognises
unrecognised deferred tax assets 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 assets can be realised. The carrying amount of deferred
tax assets are 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.
MAT credit is recognised, as an asset only when and to the extent there
is convincing evidence that the company will pay normal income tax
during the specified period. In the year in which the Minimum
Alternative tax (MAT) credit becomes eligible to be recognized as an
asset in accordance with the recommendations contained in guidance Note
issued by the Institute of Chartered Accountants of India, the said
asset is created by way of a credit to the profit and loss account and
shown as MAT Credit Entitlement. The Company reviews the same at each
balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the
effect that Company will pay normal Income Tax during the specified
period.
16) Provisions and Contingencies
a) A provision is recognised when an enterprise has a present
obligation as a result of past event; 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 are not discounted to
its present value and are determined based on best 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 best
estimates.
b) Contingent liabilities are disclosed, unless the possibility of an
outflow of resources embodying the economic benefit is remote.
c) Contingent assets are not provided.
17) Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand.
Mar 31, 2010
1. Basis of Preparation:
The financial statements have been prepared to comply in all material
respects with the Accounting Standards notified by 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
except in case of assets for which provision for impairment is made and
revaluation is carried out. The accountings policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make 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
period. Although these estimates are based upon managements best
knowledge of current events and actions, actual results could differ
from these estimates.
3. Fixed Assets:
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
5. Impairment:
i. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
ii. After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances. However the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment.
6. Intangible Assets:
Amount paid as franchisee rights and HR Software is treated as an
intangible asset and is amortized over a period of 5 years from the
date of incurring such expenditure on pro-rata basis.
7. Revenue Recognition:
(a) In case of Open Program, income is recognized at the commencement
of the program.
(b) In case of Corporate Program, appropriate revenue is recognized
when confirmed order is received and there is reasonable certainty of
completion of the program.
(c) In case of Long term course (i.e. courses more than 6 weeks
duration), revenue is accrued over the period of the course.
(d) Dividend Revenue is recognized when the shareholders right to
receive payment is established by the balance sheet date.
(e) Interest is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
8. Foreign Currency Transactions:
Foreign currency transactions
(i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items at
rates different from those at which they were initially recorded during
the year, or reported in previous financial statements, are recognized
as income or as expenses in the year in which they arise.
9. Investments:
(a) Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long-term investments.
(b) Current investments are carried at lower of cost and fair value
determined on an individual investment basis.
(c) Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
(d) Carrying amount of an individual investment is determined on the
basis of the average carrying amount of the total holding of the
investment.
10. Retirement and other Employee Benefits:
i. A retirement benefit in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the Profit and
Loss Account of the year when the contributions to the respective funds
are due. There are no other obligations other than the contribution
payable to the respective funds.
ii. Gratuity liabilities are defined benefit obligations and are
provided for on the basis of an actuarial valuation made at the end of
each financial year. The company makes contribution to the Employees
Group -cum-life Assurance scheme of the L.I.C. India.
iii. Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
iv. Liability under the Super Annuation fund is charged to the Profit
and Loss account immediately.
11. Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing
of funds.
12. Segment Reporting Policies Identification of segments:
The Companys operating businesses are organized and managed separately
according to the nature of services provided, with each segment
representing a strategic business unit that offers different products
and serves different markets.
Inter segment Transfers :
The Company generally accounts for intersegment sales and transfers as
if the sales or transfers were to third parties at current market
prices.
Allocation of common costs :
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated items :
Includes general corporate income and expense items which are not
allocated to any business segment.
Segment Policies :
The company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole.
13. Leases:
Leases where the lessor effectively retains substantially all risk and
reward of ownership of the leasehold assets are classified as operating
lease. Operating lease payments are recognized as an expense in the
profit and loss account on straight-line basis over the lease term.
14. Earnings Per Share:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they were entitled to participate in dividends relative to
a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period are
adjusted for events of bonus issue; bonus element in a rights issue to
existing shareholders; share split; and reverse share split
(consolidation of shares).
15. Taxes
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 enacted in India. Deferred
income taxes 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.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws. Deferred tax assets are recognised only to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realised. In situations where the company has unabsorbed depreciation
or carry forward tax losses, all deferred tax assets are recognised
only if there is virtual certainty supported by convincing evidence
that they can be realised against future taxable profits.
At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets 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 assets can be realised. The
carrying amount of deferred tax assets are 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.
MAT credit is recognised as an asset only when and to the extent there
is convincing evidence that the company will pay normal income tax
during the specified period. In the year in which the Minimum
Alternative tax (MAT) credit becomes eligible to be recognized as an
asset in accordance with the recommendations contained in guidance Note
issued by the Institute of Chartered Accountants of India, the said
asset is created by way of a credit to the profit and loss account and
shown as MAT Credit Entitlement. The Company reviews the same at each
balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the
effect that Company will pay normal Income Tax during the specified
period.
16. Provisions and Contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past event; 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 are not discounted to its
present value and are determined based on best 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 best
estimates.
Contingent liabilities are disclosed, unless the possibility of an
outflow of resources embodying the economic benefit is remote.
Contingent assets are not provided.
17. Cash and Cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand.