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Accounting Policies of Zee Learn Ltd. Company

Mar 31, 2015

A Basis of preparation of financial statements

The financial statements are prepared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). GAAP comprises mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified ) and guildlines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses for the period. Difference between the actual results and estimates are recognised in the period in which results are known / materialized.

c Tangible fixed assets

(i) Tangible fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the assets to its working condition for intended use.

(ii) Capital work in progress comprises cost of fixed assets and related expenses that are not yet ready for their intended use at the reporting date.

d Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortization and impairment loss, if any. The cost comprises of purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost incurred on asset that are not ready for their intended use at the reporting date.

e Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of qualifying asset till the time such assets are ready for its intended use are capitalized as a part of the cost of assets. All other borrowing costs are expensed in the period they occur.

f Impairment of tangible and intangible assets

At each Balance Sheet date, the Company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

g Depreciation/amortization on tangible/intangible assets

(i) Depreciable amount for tangible fixed assets is cost of an asset, or other amount substituted for cost less its estimated residual value. Depreciation on tangible fixed assets is provided on straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(ii) Leasehold Improvements are amortized over the period of Lease.

(iii) Intangible assets are amortised overtheir respective individual estimated useful lives on straight line basis, h Investments

(i) Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments including investment property are classified as long-term investments.

(ii) Current investments are stated at lower of cost and fair market value determined on an individual investment basis. Long- term investments are stated at cost, less provision for diminution other than temporary, in the value of such investments.

i Transactions in foreign currencies

(i) Foreign currency transactions are accounted at the exchange rate prevailing on the date of such transaction.

(ii) Foreign currency monetary items are translated using the exchange rate prevailing at the reporting date. Exchange differences arising on settlement of monetary items or on reporting such monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements are recognised as income or as expenses in the year in which they arise.

j Revenue recognition

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

(i) Sales- Educational goods and equipments and television content is recognized when the significant risk and rewards of ownership are passed onto the customers, which is generally on dispatch or agreed terms.

(ii) Services

a) Course fees and Royalty income is recognized over the duration of the course.

b) Franchise fees is recognized as per the agreed terms of the agreement.

c) Revenue from other services is recognised as and when such services are completed/performed.

(iii) Interest income is recognised on a time proportion basis taking into account principal outstanding and the applicable interest rate.

(iv) Dividend income is recognised when the Company's right to receive dividend is established, k Inventories

Educational goods and equipments and television content are valued at lower of cost or estimated net realizable value. Cost comprises cost of purchase, freight and other expense incurred in bringing the inventories to their present location and condition. Costs are taken on weighted average basis in case of educational goods and equipments and specific identification method in case of television content.

I Retirement and other employee benefits

(i) Short-term employee benefits are expensed at the undiscounted amount in the Statement of Profit and Loss in the year the employee renders the service.

(ii) Post employment and other long-term employee benefits are recognised as an expense in the Statement of Profit and Loss at the present value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the Statement of Profit and Loss.

(iii) Payment to defined contribution retirement benefit schemes are recognised as an expense in the Statement of Profit and Loss, when due.

m Accounting for taxes on income

(i) Current tax is determined as the amount of tax payable in respect of taxable income as per the provisions of the Income Tax Act, 1961.

(ii) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates and laws.

n Operating lease

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognized as expense on accrual basis in accordance with the terms of respective lease agreements.

o Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except when the results would be anti-dilutive.

p Provisions, Contingent liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

A. Basis of Preparation of fnancial statements

The fnancial statements are prepared under the historical cost convention on going concern basis in accordance with Indian Generally Accepted Accounting Principles (GAAP) and comply in all material aspects with the accounting standards notifed under, the Companies(Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). The Company follows the mercantile system of accounting and recognises income and expenditure on accrual.

b. Use of estimates

The preparation of fnancial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the fnancial statements and the reported amounts of revenue and expenses of the year. Difference between the actual results and estimates are recognised in the period in which results are known/materialised.

c. Tangible fxed assets

(i) Tangible Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the assets to its working conditions for intended use.

(ii) Capital work in progress comprises cost of fxed assets and related expenses that are not yet ready for their intended use at the reporting date.

d. Intangible assets

(i) Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortization and impairment loss, if any.

(ii) Intangible assets under development comprises of purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost incurred on asset that are not ready for their intended use at the reporting date.

e. 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 capitalised as a part of the cost of respective asset. All other borrowing costs are expenses in the period they occur.

f. Impairment of tangible and intangible assets

At each Balance Sheet date, the Company reviews the carrying amount of fxed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash fows expected from the continuing use of the asset to their present value.

g. Depreciation/amortisation on tangible/intangible assets

(i) Depreciation on tangible fxed assets is provided on Straight Line Method at the rates specifed in Schedule XIV to the Companies Act, 1956 except Training equipments on which depreciation is provided based on the estimated useful life of 3 years. The rate of depreciation so derived is more than the rate prescribed under Schedule XIV

(ii) Leasehold Improvements are amortized over the period of Lease.

(iii) Intangible assets are amortised on straight line basis over the economic useful life estimated by the management.

h. Investments

Investments, which are intended to be held for more than one year from the date on which such investment are made, are classifed as long term investments. Long term investments are stated at cost less provision for diminution other than temporary in value of such investment.

i. Transactions in foreign currencies

(i) Foreign currency transactions are accounted at the exchange rates prevailing on the date of such transaction.

(ii) Foreign currency monetary items are translated using the exchange rate prevailing at the reporting date. Exchange differences arising on settlement of monetary items or on reporting such monetary items at rates different from those at which they were initially recorded during the year, or reported in previous fnancial statements are recognised as income or as expenses in the year in which they arise.

j. Revenue recognition

(i) Sales- Educational goods, equipments and television content is recognized when the signifcant risk and rewards of ownership are passed onto the customers, which is generally on dispatch.

(ii) Services

a) Course fees and Royalty income is recognized over the duration of the course.

b) Franchise fees is recognized as per the agreed terms of the agreement.

c) Revenue from other services are recognised as and when such services are completed/performed.

(iii) Interest income is recognised on a time proportion basis taking into account principal outstanding and the applicable interest rate.

k. Inventories

Educational goods, equipments and television content are valued at lower of cost or estimated net realisable value. Cost includes cost of purchase, freight and other expense incurred in bringing the inventories to their present location and condition. Costs are taken on weighted average basis and specifc identifcation method.

l. Retirement and other employee benefts

(i) Short-term employee benefts are expensed at the undiscounted amount in the Statement of Proft and Loss in the year the employee renders the service.

(ii) Post employment and other long term employee benefts are recognised as an expense in the Statement of Proft and Loss at the present value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the Statement of Proft and Loss.

m. Accounting for taxes on income

(i) Current Tax is determined as the amount of tax payable in respect of taxable income as per the provisions of the Income Tax Act, 1961.

(ii) Deferred tax is recognised, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using tax rates and laws enacted.

n. Operating Lease

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classifed as operating leases. Lease payments under operating leases are recognised as expense on accrual basis in accordance with the terms of respective lease agreements.

o. Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period, except when the results would be anti-dilutive.

p. Provisions, Contingent liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outfow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognised nor disclosed in the fnancial statements.


Mar 31, 2012

A Basis of Preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis and comply in all material aspects with the accounting standards notified under Section 211 (3C), Companies(Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI).

b Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. Any revision to estimates is recognised prospectively in current and future periods.

c Tangible fixed assets

(i) Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost include all expenses incurred to bring the assets to its present location and condition.

(ii) Capital work in progress comprises cost of fixed assets and related expenses that are not yet ready for their intended use at the reporting date.

d Intangible assets

(i) Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortization and accumulated impairment loss if any.

(ii) Intangible assets under development comprises of purchase price, borrowing cost and directly attributable cost incurred on asset that are not ready for their intended use at the reporting date.

e 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 a part of the cost of respective asset. All other borrowing costs are expenses in the period they occur.

f Impairment of tangible and intangible assets

At each Balance Sheet date, the Company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

g Depreciation on tangible assets

(i) Depreciation on fixed assets is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956 except Training equipments which is amortized on straight line basis over a period of three years based on management's estimate of useful life

(ii) Leasehold Improvements are amortized over the period of Lease.

h Amortization on intangible assets

Intangible assets are amortized on straight line basis, based on management's estimate of useful life.

i Investments

Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Long term investments are carried at cost. Provision for diminution in value of investment other than temporary is made wherever applicable.

j Transactions in foreign currencies

(i) Foreign currency transactions are accounted at the exchange rates prevailing on the date of such transactions.

(ii) Foreign currency monetary items are retranslated using the exchange rates prevailing at the reporting date. Exchange difference are recognised as income or expense in the period in which they arise.

k Revenue recognition

(i) Services

a) Course fees and Royalty income is recognized over the duration of the course.

b) Franchise fees is recognized as per the agreed terms of the agreement.

(ii) Sales- Educational goods and equipments is recognized when the risk and rewards of ownership are passed onto the customers, which is generally on dispatch.

(iii) Interest income is recognised on a time proportion basis taking into account outstanding and the applicable interest rate.

l Inventories

Educational goods and Equipments are valued at lower of cost or estimated net realizable value. Cost is determined on the basis of weighted average cost. Cost of inventory includes cost of purchase, freight and other expense incurred in bringing the inventories to their present location and condition.

m Retirement and other employee benefits

(i) Short-term employee benefits are expensed at the undiscounted amount in the statement of profit and loss in the year employee renders the service.

(ii) Post employment and other long term employee benefits are recognised as an expense in the statement of profit and loss in the year the employee renders the service. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the statement of Profit and Loss.

n Accounting for taxes on income

(i) Current Tax is determined as the amount of tax payable in respect of its taxable income as per the provisions of the Income Tax Act, 1961.

(ii) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using tax rates and laws enacted.

o Operating Lease

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognized as expense on accrual basis in accordance with the terms of respective lease agreements.

p Earnings Per Share

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the period. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period, except when the results would be anti- dilutive.

q Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

1. Basis of accounting

The Financial Statements have been prepared under the Historical Cost Convention and on accrual basis in accordance with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956.

2. Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the financial statements and the reported amount of revenue and expenses of the period. Actual results could differ from these estimates. Any revision to estimates is recognized prospectively in current and future periods.

3. Fixed assets

a) Fixed assets are stated at original cost of acquisition/installation net of accumulated depreciation, amortisation and impairment losses. The cost of fixed assets includes taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets.

b) Educational Content and software are capitalised as intangible assets in the year it is put to use.

c) Cost incurred on development/improvement of leasehold assets is capitalised.

d) Capital Work-in-progress includes expenditure incurred upto the date of Balance sheet, advances for capital expenditure etc.

4. Borrowing Costs

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of the cost of such assets. All other borrowing costs are charged to revenue.

5. Impairment of Assets

At each Balance Sheet date, the Company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

6. Depreciation/Amortisation

a) Depreciation on tangible fixed assets is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956 except Training equipments which is amortised on straight line basis over a period of three years based on managements estimate of useful life

b) Leasehold Improvements are amortized over the period of Lease.

c) Intangible assets are amortised on straight line basis over a period of three years based on managements estimate of useful life.

7. Investments

Long-term investment is carried at cost. Provision for diminution in value of investment other than temporary is made, wherever applicable.

8. Revenue Recognition

a) Educational Services

i) Course fees and Royalty income is recognised over the duration of the course.

ii) Franchise fees is recognised as per the agreed terms of the agreement.

b) Sale of Educational goods and equipments is recognised when the risk and rewards of ownership are passed onto the customers, which is generally on dispatch.

c) Interest income is recognised on accrual basis.

9. Inventories

Educational goods and equipments are valued at lower of cost or estimated net realisable value. Cost is determined on the basis of weighted average cost. Cost of inventory includes cost of purchase, freight and other expense incurred in bringing the inventories to their present location and condition.

10. Employee Benefits

a) Defined Contribution Plan

The retirement benefits in the form of provident fund, the contribution payable by the Company is charged to Profit and Loss account of the year.

b) Defined Benefit Plan

The Present value of defined benefit obligations and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date. The defined benefit obligations are not funded.

Leave encashment:

Liability for leave encashment is provided on the basis of actuarial valuation at the balance sheet date.

Gratuity:

Liability for gratuity for the year is provided on the basis of actuarial valuation, as per defined retirement plan covering eligible employees. The plan provides payment to vested employees on retirement, death or termination of employment of an amount based on the respective employees salary and the terms of employment with the Company.

11. Accounting for Taxes on Income

a) Current Tax is determined as the amount of tax payable in respect of taxable income for the period as per the provisions of the Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

12. Operating Lease

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease rentals under operating leases are recognized as expense on accrual basis in accordance with the terms of respective lease agreements.

13. transactions in Foreign Currency

a) Foreign currency transactions are accounted at the exchange rate prevailing on the date of such transactions.

b) Foreign currency monetary assets and liabilities at the balance sheet date are translated at the closing rate. gains and losses resulting on settlement/translation of monetary assets and liabilities on the closing date are recognized in the Profit and Loss account.

14. earnings Per Share

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the period. Dilutive earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except when the results would be anti-dilutive.

15. Provisions, Contingent Liabilities and Contingent assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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