Mar 31, 2015
1 Company Overview
Birla Shloka Edutech Limited (the Company) has been incorporated on
25th May, 1992 (CIN : L74999MH992PLC066910) with Registrar of Mumbai as
Rathi Mercantile Industries Limited. Company got its name as Birla
Shloka Edutech Limited in December 2008. The Registered Office of the
Company is situated at Industry House, 159, Churchgate Reclamation,
Mumbai, Maharashtra 400 020.
Company is engaged in providing IT Services & sale of IT products and
has a curriculum based educational software programe viz., "XL@School "
as per the syllabus prescribed by different educational board that is
designed to impart academic knowledge through electronic media.
The Company has authorized capital of Rs.100,00,00,000- and Paid up
Capital of Rs.20,94,56,370. The Company has listed its Shares on Bombay
Stock Exchange (BSE), Mumbai.
The Company has three Subsidiaries Birla Edutech Limited (Up to 30th
September,2014) , Birla Shloka Edutech Limited FZE and Ojus Healthcare
Private Limited.
The main objective of Ojus Healthcare Private Limited is to establish
hospitals, conducting research and development activities in the areas
of medical science, to carry the business of providing the healthcare
and health information. In addition to the main object it can also
pursue e- Governance Project.
a. System of Accounting :
The Financial Statements have been prepared under the historical cost
convention, except where impairment is made and on accrual basis in
accordance with accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Companies Act, 2013, read with Rule 7 of the Companies (Accounts)
Rules, 2014. Accounting policies have been consistently applied by the
Company and are consistent with those used in the Previous Year.
b. Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include computation of provisions for doubtful debts,
future obligations under employee retirement benefit plans, income
taxes and the useful lives of fixed assets and intangible assets.
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are
made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial
statements.
c. Revenue Recognition
Revenue from Operations
The company derives its revenue from either supply or on installation
of educational content and services, content licensing, sale of content
and technology products. The revenue from sale of educational content
and technology products is recognized upon dispatch / delivery to the
customer. Revenue from ICT BOOT model is recognized over the period of
the contract. Revenue from Licensing of content is recognized when the
knowledge based content is delivered and accepted. Annual Technical
Services revenue and revenue from fixed price maintenance contracts are
recognized ratably over the period in which services are rendered.
Profit on sale is recorded on transfer of title from the Company and is
determined as the difference between the sale price and carrying value
of the investment. Lease rentals are recognized ratably on a straight
line basis over the lease term. Interest is recognized on a time
proportion basis taking into account the amount outstanding and the
rate applicable.
d. Provision and Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made.
e. Fixed Assets - Tangible and Intangible Assets and Capital
Work-in-Progress Fixed assets are stated at cost, less accumulated
depreciation. Direct costs are capitalized until fixed assets are ready
for use. Capital work-in-progress comprises of the cost of fixed assets
that are not yet ready for their intended use at the reporting date.
Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization.
f. Depreciation and Amortization
With Effect from 1st April, 2014, depreciation in respect of assets is
provided on the basis of useful lives of assets as prescribed in part
of 'C' of Schedule II to the Companies Act,2013.
Prior to 1st April, 2014 Depreciation on Tangible Assets is provided on
the Written down Value Method over the useful lives of assets estimated
by the Management.
Intangible assets are amortized over their respective individual
estimated useful lives on the basis of Future Economic benefits derived
from that Particular Asset.
g. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
Statement of Profit and Loss. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount but only to the extent of carrying amount as
if, the asset is not previously assessed as impaired.
h. Inventories
Inventories are valued at cost or net realizable value, whichever is
lower.
i. Borrowing Cost
Borrowing Cost is generally and ordinarily charged to the Statement of
Profit and Loss for the respective year of which that Cost belongs
except the Borrowing Cost incurred in relation to acquisition and
Construction of Fixed Assets and Inventory which take substantial
period of time to get ready for its intended use (if permitted by AS-16
- " Borrowing Cost.)
j. Employee Benefits
i) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
ii) Post employment and other long term employee benefits are
recognized as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognized at the present value of the amounts 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.
k. Research and Development
Research costs are expensed as incurred and even software product
development costs are also expensed as incurred unless technical and
commercial feasibility of the project is demonstrated, future economic
benefits are probable, the Company has an intention and ability to
complete and use or sell the software and the costs can be measured
reliably.
l. Foreign Currency Transactions
Research costs are expensed as incurred and even software product
development costs are also expensed as incurred unless technical and
commercial feasibility of the project is demonstrated, future economic
benefits are probable, the Company has an intention and ability to
complete and use or sell the software and the costs can be measured
reliably.
m. Provision for Current and Deferred Tax
Research costs are expensed as incurred and even software product
development costs are also expensed as incurred unless technical and
commercial feasibility of the project is demonstrated, future economic
benefits are probable, the Company has an intention and ability to
complete and use or sell the software and the costs can be measured
reliably.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets in situation where unabsorbed
depreciation and carry forward business loss exists, are recognized
only if there is virtual certainty supported by convincing evidence
that sufficient future taxable income will be available against which
such deferred tax asset can be realized. Deferred tax assets, other
than in situation of unabsorbed depreciation and carry forward business
loss, are recognized only if there is reasonable certainty that they
will be realized. Deferred tax assets are reviewed for the
appropriateness of their respective carrying values at each reporting
date. Deferred tax assets and deferred tax liabilities have been offset
wherever the Company has a legally enforceable right to set off current
tax assets against current tax liabilities and where the deferred tax
assets and deferred tax liabilities relate to income taxes levied by
the same taxation authority.
n. Earnings per share
Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
o. Investments
Trade investments are the investments made to enhance the Company's
business interests. Investments are either classified as current or
long-term based on Management's intention at the time of purchase.
Current investments are carried at the lower of cost and fair value of
each investment individually. Cost for overseas investments comprises
the Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
p. Cash and cash equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks
and corporations. The Company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amounts of cash to be
cash equivalents.
q. Miscellaneous Expenditure
Costs incurred in connection with raising capital and borrowings are
adjusted against the Securities Premium account.
r. Segment Reporting
As the Company operates in one segment only i.e. Information
Technology, Segment Reporting is not applicable.
s. Taxes on Income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year.
Minimum alternate tax (MAT) paid in accordance with the tax laws, which
gives rise to future economic benefit in the form of adjustment of
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal tax after the tax
holiday period.
Deferred tax is recognized, subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets arising
on account of unabsorbed depreciation or carry forward losses are
recognized only to the extent that there is virtual certainty supported
by convincing evidence that sufficient future taxable income will be
available against which such deferred tax assets can be realized. At
each balance sheet date the Company reassesses unrecognized deferred
tax assets, to the extent they become reasonably certain or virtually
certain of realisation, as the case may be.
t. Fringe Benefit Tax:
Fringe Benefit Tax was recognized in accordance with the relevant
provisions of the Income Tax Act, 1961 and the Guidance note on Fringe
Benefit Tax issued by the Institute of Chartered Accountants of India
(ICAI).
u. Operating Leases:
Assets taken on lease under which all risks and rewards of ownership
are effectively retained by the less or are classified as operating
lease. Lease payments under operating leases are recognized as expenses
on accrual basis in accordance with the respective lease agreements.
v. Impairment of assets:
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to Profit
and Loss account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been a change in the estimate of the recoverable
amount.
w. Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a 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.
x. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
y. Earnings per share:
In determining earnings per share, the company considers the net profit
after tax after reducing the preference dividend and tax thereon and
includes the post-tax effect of any extra-ordinary items. The number of
shares used in computing basic earnings per share is the weighted
average number of shares outstanding during the period. The number of
shares used in computing diluted earnings per share comprises the
weighted average number of shares considered for deriving basic
earnings per share, and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares.
z. Cash and cash equivalents:
Cash and cash equivalents for the purpose of Cash Flow Statement
comprises of cash at banks, cash in hand (including cheques in hand)
and bank deposits with maturity of less than three months.
c. Terms /Rights attached to Equity Shares
The Company has only one class of Share Capital , i.e. equity shares
having a par value of Rs. 10 per share. Each holder of equity shares is
entitled to one vote per share.
d. Shares held by holding/ultimate holding company and/or their
subsidiaries/associates Company does not have any holding Company. None
of the Subsidiaries / Associates are holding the shares of company.
e. Aggregate number of bonus shares issued, share issued for
consideration other than cash and shares bought back during the period
of five years immediately preceding the reporting date:
None of the Shares have been issued for a consideration other than cash
or bonus during the period of five years immediately preceding the
reporting date and also company did not buyback any of its equity
shares during that period.
The differed tax assets is not recognized during the year on the basis
of prudence and would be accounted in the subsequent year/ years
considering the requirement of the accounting standard (AS) 22 on
"Accounting for Taxes on Income", regarding reasonable/ virtual
certainty and the accounting policy followed by the Company in this
respect.
Mar 31, 2014
A. System of Accounting :
The Financial Statements have been prepared under the historical cost
convention, except where impairment is made and on accrual basis in
accordance with accounting principles generally accepted in India and
the provisions of the Companies Act, 1956 read with General Circular
15/2013 dated 13th September 2013, issued by the Ministry of Corporate
Affairs, in respect of section 133 of the Companies Act, 2013.
Accounting policies have been consistently applied by the Company and
are consistent with those used in the Previous Year.
b. Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include computation of provisions for doubtful debts,
future obligations under employee retirement benefit plans, income
taxes and the useful lives of fixed assets and intangible assets.
Accounting estimates could change from period to period. Actual results
could differ fromthose estimates. Appropriate changes in estimates are
made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial
statements.
c. Revenue Recognition Revenue from Operations
The company derives its revenue from either supply or on installation
of educational content and services, content licensing, sale of content
and technology products. The revenue from sale of educational content
and technology products is recognized upon dispatch / delivery to the
customer. Revenue from ICT BOOT model is recognized over the period of
the contract. Revenue from Licensing of content is recognized when the
knowledge based content is delivered and accepted. Annual Technical
Services revenue and revenue from fixed price maintenance contracts are
recognized ratably over the period in which services are rendered.
Profit on sale is recorded on transfer of title from the Company and is
determined as the difference between the sale price and carrying value
of the investment. Lease rentals are recognized ratably on a straight
line basis over the lease term. Interest is recognised on a time
proportion basis taking into account the amount outstanding and the
rate applicable.
d. Provision and Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or
e. Fixed Assets - Tangible and Intangible Assets and Capital
Work-in-Progress
Fixed assets are stated at cost, less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready for use. Capital
work-in-progress comprises of the cost of fixed assets that are not yet
ready for their intended use at the reporting date.
Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization.
f. Depreciation and Amortization
Depreciation on Tangible Assets is provided on the Written down Value
Method over the useful lives of assets estimated by the Management.
Intangible assets are amortized over their respective individual
estimated useful lives on the basis of Future Economic benefits derived
from that Particular
g. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
Statement of Profit and Loss. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount but only to the extent of carrying amount as
if, the asset is not previously assessed as impaired.
Birla Shloka Edutech Limited
Notes forming part of the Balance Sheet & Statement of Profit and Loss
for the Year Ended 31st March, 2014.
h. Inventories
Inventories are valued at cost or net realisable value, whichever is
lower.
i. Borrowing Cost
Borrowing Cost is generally and ordinarily charged to the Statement of
Profit and Loss for the respective year of which that Cost belongs
except the Borrowing Cost incurred in relation to acquisition and
Construction of Fixed Assets and Inventory which take substantial
period of time to get ready for its intended use (if permitted by AS-16
- "Borrowing Cost")
j. Employee Benefits
Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the
i. related service is rendered.
Post employment and other long term employee benefits are recognised as
an expense in the Statement of Profit and Loss for the year in which
the
ii. employee has rendered services. The expense is recognised at the
present value of the amounts 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.
k. Research and Development
Research costs are expensed as incurred and even software product
development costs are also expensed as incurred unless technical and
commercial feasibility of the project is demonstrated, future economic
benefits are probable, the Company has an intention and ability to
complete and use or sell the software and the costs can be measured
reliably.
l. Foreign Currency Transactions
Foreign currency transactions are recorded on initial recognition in
the reporting currency using the exchange rate prevailing at the date
of transaction. At each Balance Sheet date, foreign currency monetary
items are reported using the closing rate. Non monetary items, carried
at historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of the transaction.
m. Provision for Current and Deferred Tax
Income taxes are accrued in the same period that the related revenue
and expenses arise. A provision is made for income tax annually, based
on the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
alternate tax (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. 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 statement of
profit and loss and shown as MAT Credit Entitlement. paid in accordance
with the tax laws, which gives rise to future economic benefits in the
form of tax credit against future income tax liability, is recognized
as an asset in the Balance Sheet if there is convincing evidence that
the Company will pay normal tax after the tax holiday period and the
resultant asset can be measured reliably. The Company offsets, on a
year on year basis, the current tax assets and liabilities, where it
has a legally enforceable right and where it intends to settle such
assets and liabilities on a net basis.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets in situation where unabsorbed
depreciation and carry forward business loss exists, are recognized
only if there is virtual certainty supported by convincing evidence
that sufficient future taxable income will be available against which
such deferred tax asset can be realized. Deferred tax assets, other
than in situation of unabsorbed depreciation and carry forward business
loss, are recognized only if there is reasonable certainty that they
will be realized. Deferred tax assets are reviewed for the
appropriateness of their respective carrying values at each reporting
date. Deferred tax assets and deferred tax liabilities have been offset
wherever the Company has a legally enforceable right to set off current
tax assets against current tax liabilities and where the deferred tax
assets and deferred tax liabilities relate to income taxes levied by
the same taxation authority.
n. Earnings per share
Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period.
Diluted earnings per share is computed by dividing the profit after tax
by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity
shares that could have been issued upon conversion of all dilutive
potential equity
o. Investments
Trade investments are the investments made to enhance the Company''s
business interests. Investments are either classified as current or
long-term based on Management''s intention at the time of purchase.
Current investments are carried at the lower of cost and fair value of
each investment individually. Cost for overseas investments comprises
the Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
p. Cash and cash equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks
and corporations. The Company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amounts of cash to be
cash equivalents.
q. Miscellaneous Expenditure
Costs incurred in connection with raising capital and borrowings are
adjusted against the Securities Premium account.
r. Segment Reporting
As the Company operates in one segment only i.e. Information
Technology, Segment Reporting is not applicable.
b. Terms and Rights attached to Equity Shares
The company has only one class of share capital, i.e. equity shares
having a face value of ''10 per share. Each holder of equity shares is
entitled to one vol
c. Shares held by holding/ultimate holding company and/or their
subsidiaries/associates
Company does not have any holding Company. None of the Subsidaries /
Asscociates are holding the shares of company.
d. Aggregate number of bonus shares issued, share issued for
consideration other than cash and shares bought back during the period
offive years immediately preceding the reporting date:
None of the Shares have been issued for a consideration other than cash
or bonus during the period of five years immediately preceding the
reporting date and also company did not buyback any of its equity
shares during that period.
Mar 31, 2013
A. Basis of Preparation
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as prescribed by 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).
b. Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include computation of provisions for doubtful debts,
future obligations under employee retirement benefit plans, income
taxes and the useful lives of fixed assets and intangible
assets. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in
estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
c. Revenue Recognition Revenue from Operations
The company derives its revenue from either supply or on installation
of educational content and services, content licensing, sale of content
and technology products. The revenue from sale of educational content
and technology products is recognized upon dispatch / delivery to the
customer. Revenue from ICT BOOT model is recognized over the period of
the contract. Revenue from Licensing of content is recognized when the
knowledge based content is delivered and accepted. Annual Technical
Services revenue and revenue from fixed price maintenance contracts are
recognized ratably over the period in which services are rendered.
Profit on sale is recorded on transfer of title from the Company and is
determined as the difference between the sale price and carrying value
of the investment. Lease rentals are recognized ratably on a straight
line basis over the lease term. Interest is recognized on a time
proportion basis taking into account the amount outstanding and the
rate applicable.
d. Provision and Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made.
e. Fixed Assets - Tangible and Intangible Assets and Capital
Work-in-Progress
Fixed assets are stated at cost, less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready for use. Capital
work-in-progress comprises of the cost of fixed assets that are not yet
ready for their intended use at the reporting date.
Intangible assets are recognized, only if it is probable that the
future economic benefits that are attributable to the assets will flow
to the enterprises and the cost of the assets can measured reliably.
The intangible assets are recorded at cost and are carried at cost less
accumulated amortization and accumulated impairment losses, if any.
f. Depreciation and Amortization
Depreciation on Tangible Assets is provided on the Written down Value
Method over the useful lives of assets estimated by the Management.
Intangible assets are amortized over their respective individual
estimated useful lives on the basis of Future Economic benefits derived
from that Particular Asset.
g. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
Statement of Profit and Loss. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount but only to the extent of carrying amount as
if, the asset is not previously assessed as impaired.
h. Inventories
Inventories includes the Finished Goods available for Sale and Work in
Progress. Value of Inventories includes the Cost of Procuring Goods and
Services, Development Cost, Borrowing Cost (if permitted by AS-16 -
"Borrowing Cost") and any other expenditure incurred in relation to
the inventory necessary to bring that in the Present and Saleable
Condition.
Inventory are valued using First in First Out basis as suggested by
Accounting Standard - 2.
i. Borrowing Cost
Borrowing Cost is generally and ordinarily charged to the Statement of
Profit and Loss for the respective year of which that Cost belongs
except the Borrowing Cost incurred in relation to acquisition and
Construction of Fixed Assets and Inventory which take substantial
period of time to get ready for its intended use (if permitted by AS-16
- "Borrowing Cost"
j. Employee Benefits
i. Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
ii. Post employment and other long term employee benefits are
recognized as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognized at the present value of the amounts 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.
l. Provision for Current Tax
Income taxes are accrued in the same period that the related revenue
and expenses arise. A provision is made for income tax annually, based
on the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
alternate tax (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. 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 statement of
profit and loss and shown as MAT Credit Entitlement. paid in accordance
with the tax laws, which gives rise to future economic benefits in the
form of tax credit against future income tax liability, is recognized
as an asset in the Balance Sheet if there is convincing evidence that
the Company will pay normal tax after the tax holiday period and the
resultant asset can be measured reliably. The Company offsets, on a
year on year basis, the current tax assets and liabilities, where it
has a legally enforceable right and where it intends to settle such
assets and liabilities on a net basis.
m. Provision for Deferred Tax
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets in situation where unabsorbed
depreciation and carry forward business loss exists, are recognized
only if there is virtual certainty supported by convincing evidence
that sufficient future taxable income will be available against which
such deferred tax asset can be realized. Deferred tax assets, other
than in situation of unabsorbed depreciation and carry forward business
loss, are recognized only if there is reasonable certainty that they
will be realized. Deferred tax assets are reviewed for the
appropriateness of their respective carrying values at each reporting
date. Deferred tax assets and deferred tax liabilities have been offset
wherever the Company has a legally enforceable right to set off current
tax assets against current tax liabilities and where the deferred tax
assets and deferred tax liabilities relate to income taxes levied by
the same taxation authority.
n. Earnings per share
Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
o. Investments
Trade investments are the investments made to enhance the Company''s
business interests. Investments are either classified as current or
long-term based on Management''s intention at the time of purchase.
Current investments are carried at the lower of cost and fair value of
each investment individually. Cost for overseas investments comprises
the Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
p. Cash and cash equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks
and corporations. The Company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amounts of cash to be
cash equivalents.
q. Miscellaneous Expenditure
Costs incurred in connection with raising capital and borrowings are
adjusted against the Securities Premium account.
r. Segment Reporting
As the Company operates in one segment only i.e. Information
Technology, Segment Reporting is not applicable.
Mar 31, 2012
A. Basis of Preparation
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as prescribed by 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).
b. Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include computation of provisions for doubtful debts,
future obligations under employee retirement benefit plans, income
taxes and the useful lives of fixed assets and intangible assets.
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates
are made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial
statements.
c. Revenue Recognition Revenue from Operations
The company derives its revenue from either supply or on installation
of educational content and services, content licensing, sale of content
and technology products. The revenue from sale of educational content
and technology products is recognized upon dispatch / delivery to the
customer. Revenue from ICT BOOT model is recognized over the period of
the contract. Revenue from Licensing of content is recognized when the
knowledge based content is delivered and accepted. Annual Technical
Services revenue and revenue from fixed price maintenance contracts are
recognized ratably over the period in which services are rendered.
Profit on sale of is recorded on transfer of title from the Company and
is determined as the difference between the sale price and carrying
value of the investment. Lease rentals are recognized ratably on a
straight line basis over the lease term. Interest is recognised on a
time proportion basis taking into account the amount outstanding and
the rate applicable.
d. Provision and Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made.
e. Fixed Assets - Tangible and Intangible Assets and Capital
Work-in-Progress
Fixed assets are stated at cost, less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready for use. Capital
work-in-progress comprises of the cost of fixed assets that are not yet
ready for their intended use at the reporting date.
Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization.
f. Depreciation and Amortization
Depreciation on Tangible Assets is provided on the Written down Value
Method over the useful lives of assets estimated by the Management.
Intangible assets are amortized over their respective individual
estimated useful lives on the basis of Future Economic benefits derived
from that Particular Asset.
g. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
profit and loss account. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.
h. Inventories
Inventories includes the Finished Goods available for Sale and Work in
Progress. Value of Inventories includes the Cost of Procuring Goods and
Services, Development Cost, Borrowing Cost (if permitted by AS-16 -
"Borrowing Cost") and any other expenditure incurred in relation to
the inventory necessary to bring that in the Present and Saleable
Condition.
Inventory are valued using First in First Out basis as suggested by
Accounting Standard - 2.
i. Borrowing Cost
Borrowing Cost is generally and ordinarily charged to the Statement of
Profit and Loss for the respective year of which that Cost belongs
except the Borrowing Cost incurred in relation to acquisition and
Construction of Fixed Assets and Inventory which take substantial
period of time to get ready for its intended use.
j. Employee Benefits
i. Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
ii. Post employment and other long term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognised at the present value of the amounts 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.
k. Research and development
Research costs are expensed as incurred. Software product development
costs are expensed as incurred unless technical and commercial
feasibility of the project is demonstrated, future economic benefits
are probable, the Company has an intention and ability to complete and
use or sell the software and the costs can be measured reliably.
l. Foreign Currency Transactions
Revenue, expense and cash-flow items denominated in foreign currencies
are translated using the exchange rate in effect on the date of the
transaction and the liability is translated to the Exchange Rate in
effect on the Balance Sheet Date and any gain or loss on such
translation is charge to Statement of Profit and Loss. Transaction
gains or losses realized upon settlement of foreign currency
transactions are included in determining net profit for the period in
which the transaction is settled.
m. Provision for Current and Deferred Tax
Income taxes are accrued in the same period that the related revenue
and expenses arise. A provision is made for income tax annually, based
on the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
alternate tax (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. 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. paid in accordance
with the tax laws, which gives rise to future economic benefits in the
form of tax credit against future income tax liability, is recognized
as an asset in the Balance Sheet if there is convincing evidence that
the Company will pay normal tax after the tax holiday period and the
resultant asset can be measured reliably.The Company offsets, on a year
on year basis, the current tax assets and liabilities, where it has a
legally enforceable right and where it intends to settle such assets
and liabilities on a net basis.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount of timing difference. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on enacted or substantively enacted
regulations. Deferred tax assets in situation where unabsorbed
depreciation and carry forward business loss exists, are recognized
only if there is virtual certainty supported by convincing evidence
that sufficient future taxable income will be available against which
such deferred tax asset can be realized. Deferred tax assets, other
than in situation of unabsorbed depreciation and carry forward business
loss, are recognized only if there is reasonable certainty that they
will be realized. Deferred tax assets are reviewed for the
appropriateness of their respective carrying values at each reporting
date. Deferred tax assets and deferred tax liabilities have been offset
wherever the Company has a legally enforceable right to set off current
tax assets against current tax liabilities and where the deferred tax
assets and deferred tax liabilities relate to income taxes levied by
the same taxation authority.
n. Earnings per share
Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
o. Investments
Trade investments are the investments made to enhance the Company's
business interests. Investments are either classified as current or
long-term based on Management's intention at the time of purchase.
Current investments are carried at the lower of cost and fair value of
each investment individually. Cost for overseas investments comprises
the Indian Rupee value of the consideration paid for the investment
translated at the exchange rate prevalent at the date of investment.
Long term investments are carried at cost less provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment
p. Cash and cash equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks
and corporations. The Company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amounts of cash to be
cash equivalents.
q. Miscellaneous Expenditure
Costs incurred in connection with raising capital and borrowings are
adjusted against the Securities Premium account.
r. Segment Reporting
As the Company operates in one segment only i.e. Information
Technology, Segment Reporting is not applicable.
Mar 31, 2011
A) Basis of Preparation
The financial statements have been prepared to comply in all material
respects with the Notified accounting standard by Companies Accounting
Standards Rules, 2006 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 accounting policies have been
consistently applied by the Company and except for the changes in
accounting policy discussed more fully below, are consistent with those
used in the previous year.
b) 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 end. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
c) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
d) Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
profit and loss account. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.
e) Application of securities premium accounts
Share issue expenses (includes GDR expenses) are charged against share
premium account.
f) Inventories
Inventories are valued at lower of cost or net realizable value. Cost
includes the cost of procuring the goods and is computed on First in
First out (FIFO) basis.
g) Intangible Assets
i. Goodwill
The Company assesses at each balance sheet date whether there is any
indication that the asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset and
the difference if any is charged to the Profit and Loss Account.
ii. Content
The Company is engaged in development of educational software content
pertaining modules on various subjects based on the curriculum of
various Boards, costs of which is capitalized. The company amortizes
the cost of such content on Written Down Value Method at the rate of
10%. Management regularly reviews and revises, where necessary, its
total estimates which may result in a change in the rate of
amortization and/or a write down of the intangible asset to fair value.
h) Leases
Finance leases, which effectively transfer to the Company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized at the lower of the fair value and present value of the
minimum lease payments at the inception of the lease term and disclosed
as leased assets. Lease payments are apportioned between the finance
charges and reduction of the lease liability based on the implicit rate
of return. Finance charges are charged directly against income. Lease
management fees, legal charges and other initial direct costs are
capitalized.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalized leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss account.
i) Revenue Recognition
i. Revenue from Operations
The company derives its revenue from either supply or on installation
of educational content and services, content licensing, sale of content
and technology products. The revenue from sale of educational content
and technology products is recognized upon dispatch / delivery to the
Customer. Revenue from ICT BOOT model is recognized over the period of
the contract. Revenue from Licensing of content is recognized when the
knowledge based content is delivered and accepted.
ii. Interest
Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
j) Borrowing Costs
Borrowing cost relating to acquisition of Fixed Assets which takes
substantial period of time to get ready for intended use are
capitalized as a part of the cost of such assets. All other Borrowing
Costs are charged to revenue.
k) Income Taxes
Ta x 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 Indian Income Tax Act. 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 are recognized 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.
At each balance sheet date the Company re-assesses unrecognized
deferred tax assets. It recognizes un- recognized 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.
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
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. 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.
l) Segment reporting
The company is functioning in only one segment; i.e. InfoTech hence,
Segment Reporting required under AS 17 is not applicable.
m) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers of equity shares outstanding during the period
are adjusted for events of conversion of shares warrant, shares issued
against GDR.
n) Provisions & Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
Assets are neither recognized nor disclosed in the Financial
Statements.
o) Miscellaneous Expenditure
Costs incurred in connection with raising capital and borrowings are
adjusted against the Securities Premium account.
p) Cash & Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand, short term investments with original maturity of three
months or less and fixed deposits with banks.
Mar 31, 2010
A. Basis of Preparation
The financial statements have been prepared to comply in all material
respects with the notified accounting standard by Companies Accounting
Standards Rules, 2006 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 accounting policies have been
consistently applied by the Company and except for the changes in
accounting policy discussed more fully below, are consistent with those
used in the previous year.
b. 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 end. Although these estimates are based upon managements best
knowledge of current events and actions, actual results could differ
from these estimates.
c. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
d. Depreciation
Depreciation is provided using the Written Down Value Method at the
rates prescribed under Schedule XIV of the Companies Act, 1956, at the
following rates:
Asset Group Rates (WDV)
Office Building 5.00%
Shop Building 10.00%
Computer Systems 40.00%
Computer Software 60.00%
Computer Software (Content) 10.00%
Furniture & Fixtures 18.10%
Electrical Fittings 13.91%
Office Equipments 13.91%
Motor Vehicles 25.89%
e. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
profit and loss account. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.
f. Inventories
Inventories are valued at lower of cost or net realizable value. Cost
includes the cost of procuring the goods and is computed on First In
First Out (FIFO) basis.
g. Intangible Assets
Goodwill
The Company assesses at each balance sheet date whether there is any
indication that the asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset and
the difference if any is charged to the Profit and Loss Account.
Content
The Company is engaged in development of educational software content
pertaining modules on various subjects based on the curriculum of
various Boards, costs of which is capitalized. The company amortises
the cost of such content on Written Down Value Method at the rate of
10%. Management regularly reviews and revises, where necessary, its
total estimates which may result in a change in the rate of
amortisation and/or a write down of the intangible asset to fair value.
h. Leases
Finance leases, which effectively transfer to the Company substantially
all the risks and benefits incidental to ownership of the leased item,
are capitalized at the lower of the fair value and present value of the
minimum lease payments at the inception of the lease term and disclosed
as leased assets. Lease payments are apportioned between the finance
charges and reduction of the lease liability based on the implicit rate
of return. Finance charges are charged directly against income. Lease
management fees, legal charges and other initial direct costs are
capitalised.
If there is no reasonable certainty that the Company will obtain the
ownership by the end of the lease item, capitalized leased assets are
depreciated over the shorter of the estimated useful life of the asset
or the lease term.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss account.
i. Revenue Recognition
Revenue from Operations
The company derives its revenue from either supply or on installation
of educational content and services, content licensing, sale of content
and technology products. The revenue from sale of educational content
and technology products is recognized upon dispatch / delivery to the
customer. Revenue from ICT BOOT model is recognized over the period of
the contract. Revenue from Licensing of content is recognized when the
knowledge based content is delivered and accepted.
Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
j. Borrowing Costs
Borrowing cost relating to acquisition of Fixed Assets which takes
substantial period of time to get ready for intended use are
capitalized as a part of the cost of such assets. All other Borrowing
Costs are charged to revenue.
k. Income 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 Indian Income Tax Act. 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 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 un-recognised 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.
l. Segment reporting
"lie company is functioning in only one segment; i.e. Infotech hence,
Segment Reporting required under AS 17 is not applicable.
m. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average numbers 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).
n. Provisions & Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require outflow of resources Where there is a possible
obligation or a present obligation that the likelihood of outflow o[
resources is remote, no provision or disclosure is made. Contingent
Assets are neither recognized nor disclosed in the Financial
Statements.
o. Miscellaneous Expenditure
Costs incurred in connection with raising capital and borrowings are
adjusted against the Securities Premium account.
p. Cash & Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank
and in hand, short term investments with original maturity of three
months or less and fixed deposits with banks.
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