Notes to Accounts of Jetking Infotrain Ltd.

Mar 31, 2019

1 Corporate information

Jetking Infotrain Limited (hereinafter referred to as “the Company”) is a Company incorporated under the Companies Act, 1956 and having its Registered Office at 401, Bussa Udyog Bhavan, Tokersi Jivraj Road, Sewri (West), Mumbai 400 015. The Company is engaged in the business of “IT Training in Hardware, Networking and Digital courses” having its Head Office at Mumbai. The Company operates through its training centres and affiliates to provide these services across India, Nepal and South East Asia.

The financial statements for the year ended March 31, 2019 were approved by the Board of Directors and authorised for issue on May 27, 2019.

Notes:

2. There was no impairment loss on the property, plant & equipments on the basis of review carried out by the Management in accordance with Indian Accounting Standard (Ind AS)-36 ‘Impairment of Assets’.

3. During the year ended March 31, 201 8, the Company transferred building with a net book value of Rs. 666.46 lakhs to investment property.

(i) Contractual obligations

Refer to note 27 of contractual obligations, to purchase, construct, or develop investment property or its repairs, maintenance or enhancements.

(ii) Leasing arrangements

Certain investment properties are leased to tenants under long term operating leases with monthly rentals. Minimum lease payments receivable under non-cancellable operating leases of investment properties are as follows:

(iii) Estimation of fair value

The fair value is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry in the complex, age of the building and trend of fair market rent in area in which the property is located.

The fair valuation is based on valuations performed by an accredited independent valuer for the year ended March 31, 2018. Fair valuation is based on market approach. The fair valuation method is categorized in Level 3 fair value hierarchy of Rs. 940.23 lakhs.

The company has an investment property under construction for which the Management has estimated stamp duty valuation to be the most representative value of fair value. The fair valuation method is categorized in Level 3 fair value hierarchy of Rs. 209 lakhs for the year ended March 31, 2018.

The Management estimates that there is no material change in the fair value of assets classified as investment property for the year ended March 31, 2019.

b) Terms / rights attached to Equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of the liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Re-issue of forfeited shares

During the previous year the Company has re-issued 18,500 equity shares of Rs. 10/- each at a premium of Rs. 46/per share on a ‘Preferential Basis’ to the Promoter Group, which were earlier forfeited by the Company due to non-payment of call money of Rs. 5/- per share in 2004. These shares are listed and admitted to dealings w.e.f. January 30, 2018. The said shares are locked-in for a period of 3 years.

Nature and purpose of reserves

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.

Retained Earnings

Retained earnings are the profits of the Company earned till date net of appropriations.

The Company has unabsorbed business losses/ depreciation and long/ short term capital losses which according to the management will be used to set off taxable profit arising, in next few years from, operation and/ or sale of investments. Significant management judgement has been considered in determining the provision for income tax, deferred tax assets and liabilities and recoverability of deferred tax assets. The recoverability of deferred tax assets is based on estimate of the taxable income for the period over which deferred tax assets will be recovered.

* The Company is in the process of compiling relevant information from its suppliers about their coverage under the Micro, Small and Medium Enterprises Development Act, 2006. As the Company has not received any intimation from its suppliers as on date regarding their status under the above said Act, no disclosure has been made.

4. Segment information

I) The Company operates in a single primary business segment i.e. “IT Training in Hardware and Networking”. Hence, there are no reportable segments as per Indian Accounting Standard (Ind AS) - 108 “Operating Segment”. The secondary segment, i.e. ‘geographical segments by location of customers’ is given below:

Information about major customers

No single customer represents 10% or more of the Company’s total revenue for the year ended March 31, 2019 and March 31, 2018.

5. Employee benefits

I) Defined contribution plan:

(i) Provident fund:

Retirement benefits in the form of provident fund are a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

II) Defined benefit plans:

(i) Post employment obligations: Gratuity:

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year.

I Assumptions Demographic assumptions at the valuation date:

i) Retirement age: The employees of the company are assumed to retire at the age of 60 and 65 years.

ii) Mortality & morbidity rates: 100% of IALM (2006-08) rates have been assumed which also includes the allowance for disability benefits.

iii) Leaving service: Rates of leaving service at specimen ages.

iv) Disability: Leaving service due to disability is included in the provision made for all causes of leaving service.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated. Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

d) Description of Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follows:

A) Salary increases - Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment risk - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount rate - Reduction in discount rate in subsequent valuations can increase the Plan’s liability.

D) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.”

Note: As the future liability for gratuity is provided on an actuarial basis for the company as whole, the amount pertaining to the key management personnel and their relatives is not ascertainable and, therefore, not included above.

The Group has made the payment of remuneration to directors amounting Rs. 187.10 lakhs (previous year Rs. 197.10 lakhs). However, in the view of inadequacy of profits, the Company has made the payment of remuneration in accordance with the provisions of the Companies Act, 2013.

6. Financial risk management

The Management of the Company has implemented a risk management system that is monitored by the Board of Directors. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims at identifying, analyzing, managing, controlling and communicating risks promptly throughout the Company. Risk management reporting is a continuous process and part of regular reporting. In addition, the Management regularly checks whether the Company complies with risk management system requirements.

The Company is exposed to credit, liquidity and market risks (foreign currency risk and price risk) during the course of ordinary activities. The aim of risk management is to limit the risks arising from operating activities and associated financing requirements by applying selected derivative and non-derivative hedging instruments.

Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments. The balances with banks, loans given to employees and security deposits are subject to low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets.

Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.

The provision for expected credit loss is recognised on the basis of life-time expected credit losses (simplified approach). Trade receivables are evaluated separately for balances towards progress billings and retention money due from customers. An expected loss rate is calculated at each year-end, based on combination of rate of default and rate of delay. The Company considers the rate of default and delay upon initial recognition of asset, based on the past experience and forward-looking information, wherever available.

Liquidity risk

Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash or cash equivalents. Managing liquidity risk, and therefore allocating resources and hedging the Company’s financial independence, are some of the central tasks of the Company’s treasury. In order to be able to ensure the Company’s solvency and financial flexibility at all times and cash and cash equivalents are reserved on the basis of perennial financial planning and periodic rolling liquidity planning. The Company’s financing is also secured for the next fiscal year.

Market risk

Market risk is the risk that fair values or future cash flows of non-derivative or derivative financial instruments will fluctuate due to changes in risk factors. Among market risks relevant to the Company are foreign currency risk and price risks. Associated with these risks are fluctuations in income, equity and cash flow. The objective of risk management is to eliminate or limit emerging risks by taking appropriate precautions, especially by applying derivatives. The application of derivatives is subject to strict controls set up on the basis of guidelines as part of regular reporting. Various measures are used to mitigate or eliminate the risk of fluctuations in the fair value of future cash flows from financial instruments due to market changes.

Foreign currency risk

The international nature of the Company’s business activities generates cash flows in different currencies - especially in USD. The Company’s exposure to foreign currency risk at the end of reporting period are as follows:

The Company’s objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholders value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders. The Capital structure of the Company is as follows:

The fair values of financial assets and liabilities are included at the amount at which the instrument can be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair vales:

a) Fair value of cash and cash equivalents, trade and other current financial assets, trade & other payables and short-term borrowings approximate their carrying amounts due to the short maturities of these instruments.

b) The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

7. Revenue from contract with customers Ind AS 115

‘Revenue from contracts from customers’

With effect from April 1, 2018, the Company has adopted Ind AS 115 ‘Revenue from Contracts with Customers’ that replaces Ind AS 18. It introduces a new five-step approach to measuring and recognising revenue from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for services to a customer.

The Company has opted for the cumulative effect method (modified retrospective application) permitted by Ind AS 115 upon adoption of new standard. Accordingly, the standard has been applied for the year ended March 31, 2019 only (i.e. the initial application period). This method requires the recognition of cumulative impact of adoption of Ind AS 115 on all contracts as at April 1, 2018 (‘transition date’) in equity and the comparative information continues to be reported under Ind AS 18. The impact of the adoption of the standard on the financial statements is not material.

Prior to adoption of IND AS 115, the Company’s revenue was primarily comprised of Training fees and income from franchisee operations. The recognition of these revenue streams is largely unchanged by Ind AS 115.

(iii) Contract balances

The contract liabilities primarily relate to the unaccrued fixed affiliation fees and the advance consideration received from customers for which revenue is recognised when the performance obligation is over / services delivered.

Advance Collections is recognised when payment is received before the related performance obligation is satisfied. This includes advances received from the customer towards training fees. Revenue is recognised once the performance obligation is met i.e. imparting training sessions to students with respect to IT Training in Hardware, Networking and digital courses. It also includes unaccrued fixed affiliation fees received from affiliates centres.

Considering the nature of business of the Company, the above contract liabilities are generally materialised as revenue within the same operating cycle.

8. Corporate social responsibility

The Company is not required to spend towards Corporate Social Responsibility (CSR) as per the Section 135 of the Companies Act, 2013, in the absence of profits, calculated on the basis of average profits for the last 3 years, calculated in accordance with the provisions of the Act.

9. Events after the reporting period

The Company evaluated all events and transactions that occurred after March 31, 2019, through May 27, 2019, the date on which the financial statements are issued. Based on the evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the financial statements.

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Mar 31, 2018

30 I) Related party relationship

a) Wholly Owned Subsidiary Company Jetking Skill Development Private Limited

b) Key management personnel i) Mr. Suresh G. Bharwani

ii) Mr. Nandu G. Bharwani

iii) Mr. Surjit Banga

iv) Mr. Mehul Kuwadia

v) Mr. Manoj Mandavgane

vi) Ms. Seema Mahajan

vii) Ms. Shridevi Vungarala (Company Secretary)

(up to February 12, 2018)

c) Relatives of key management personnel i) Mr. Jitu G. Bharwani - Brother of Mr. Suresh

Bharwani and Mr. Nandu Bharwani (up to March 15, 2017)

ii) Mr. Harsh Bharwani - Son of Mr. Suresh G. Bharwani

iii) Mr. Avinash Bharwani - Son of Mr. Suresh G. Bharwani

iv) Mr. Siddarth Bharwani - Son of Mr. Suresh G. Bharwani

v) Mrs. Dipti Bharwani - Wife of Mr. Nandu G. Bharwani

vi) Mrs. Urvashi Bharwani - Daughter of Mr. Nandu G. Bharwani

vii) Mrs. Ritika Bharwani - Daughter of Nandu G. Bharwani

viii) Mr. Nandu G. Bharwani- HUF (Karta)

Note: As the future liability for gratuity is provided on an actuarial basis for the company as whole, the amount pertaining to the key management personnel and their relatives is not ascertainable and, therefore, not included above.

# The Company has made the payment of remuneration to directors amounting to Rs,197.10 (previous year Rs,207.10). However, in the view of inadequacy of profits, the Company had made the payment of remuneration in accordance with the approval received from the Central Government.

31 Financial risk management

The management of the Company has implemented a risk management system that is monitored by the Board of Directors. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims at identifying, analyzing, managing, controlling and communicating risks promptly throughout the Company. Risk management reporting is a continuous process and part of regular reporting. In addition, the Management regularly checks whether the Company complies with risk management system requirements.

The Company is exposed to credit, liquidity and market risks (foreign currency risk and price risk) during the course of ordinary activities. The aim of risk management is to limit the risks arising from operating activities and associated financing requirements by applying selected derivative and non-derivative hedging instruments.

Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments. The balances with banks, loans given to employees and associated company, security deposits are subject to low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets.

Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.

The provision for expected credit loss is recognized on the basis of life-time expected credit losses (simplified approach). Trade receivables are evaluated separately for balances towards progress billings and retention money due from customers. An expected loss rate is calculated at each year-end, based on combination of rate of default and rate of delay. The Company considers the rate of default and delay upon initial recognition of asset, based on the past experience and forward-looking information, wherever available.

Liquidity risk

Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash or cash equivalents. Managing liquidity risk, and therefore allocating resources and hedging the Company''s financial independence, are some of the central tasks of the Company''s treasury. In order to be able to ensure the Company''s solvency and financial flexibility at all times, cash and cash equivalents are reserved on the basis of perennial financial planning and periodic rolling liquidity planning.

Market risk

Market risk is the risk that fair values or future cash flows of non-derivative or derivative financial instruments will fluctuate due to changes in risk factors. Among market risks relevant to the Company are foreign currency risk and price risks. Associated with these risks are fluctuations in income, equity and cash flow. The objective of risk management is to eliminate or limit emerging risks by taking appropriate precautions, especially by applying derivatives. The application of derivatives is subject to strict controls set up on the basis of guidelines as part of regular reporting. Various measures are used to mitigate or eliminate the risk of fluctuations in the fair value of future cash flows from financial instruments due to market changes.

Foreign currency risk

The international nature of the Company''s business activities generates numerous cash flows in different currencies -especially in USD. The Company''s exposure to foreign currency risk at the end of reporting period are as follows:

32 Capital Management

The Company''s objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

34 Fair value measurement

The fair values of financial assets and liabilities are included at the amount at which the instrument can be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair vales:

a) Fair value of cash and cash equivalents, trade and other current financial assets, trade & other payables and short term borrowings approximate their carrying amounts due to the short maturities of these instruments.

b) The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

35 First-time adoption Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of the opening Ind AS balance sheet at April 1, 2016 (the Company''s date of transition) are subject to certain exemptions and exceptions provided in Ind AS 101 with respect to transition date (refer note below). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

I Exemptions availed a) Intangible Assets

The Company has elected to consider the carrying value of its intangible assets recognized in the financial statements prepared under previous GAAP and used the same as deemed cost in the opening Ind AS balance sheet.

II Exceptions applied

a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP

b) De-recognition of financial assets and liabilities

The Company has applied the de-recognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after the transition date.

c) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

b) Material Adjustments to statement of cash flows

No material adjustments have been identified to the Statement of Cash flows on account of transition to Indian Accounting Standards.

1 Trade receivables

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts.

2 Discounting of security deposit

Under the previous GAAP, interest free refundable security deposits given were carried at transaction value. Under Ind AS, all financial assets and liabilities are required to be recognized at fair value. Difference between the fair value and transaction value of the security deposits has been recognized as prepaid rental expense. Consequent to this change, the amount of security deposits decreased as at March 31, 2017 and April 01, 2016. The impact on total equity as at March 31, 2017 was on account of the increase in rental cost, partly off-set by the notional interest income/ expense recognized on security deposits.

3 Effect of land and building

Under previous GAAP, land and building composite lease were accounted for as a single unit. Under the requirements of Ind AS, land and building lease have to be separately accounted for and amortized over the individual useful life/ lease term.

4 Fair valuation of investments

Under the previous GAAP, investments were carried at cost. Under Ind AS, investments are fair valued through profit and loss and fair value changes i.e. gains/ (losses) are recorded in the Statement of Profit and Loss.

5 Revenue on franchisee fees

Under Ind AS, the Company recognizes revenue from franchise registration fees based on the proportion of value of services the Company is obliged to provide over the contractual tenor.

6 Reversal of brand amortization

The Company originally capitalized brand expenses as an intangible asset. Under Ind AS, the company assessed brand to be having indefinite life. Such assets are required to be tested for impairment every balance sheet date and amortization is prohibited. Accordingly the amortization for the year 31 March, 2017 under previous GAAP was reversed and the asset was tested for impairment.

7 Deferred tax

Deferred taxes have been recognized on the adjustments made on transition to Ind AS

8 Remeasurement of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability, are recognized in other comprehensive Income instead of Statement of Profit and Loss as per previous GAAP Under the previous GAAP these remeasurements were forming part of the profit or loss for the year.

9 Changes in accounting policies

Based on requirements of Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, the Company has accounted for the restatement on account of Ind AS transition at the beginning of the period retrospectively by restating the comparative amounts to which the same relates. Since certain periods were prior to the transition date, the impact has been considered in preparation of the opening balance sheet.

10. Events after the reporting period

The Company evaluated all events and transactions that occurred after March 31, 2018 through May 25, 2018; the date on which the financial statements are issued. Based on the evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the financial statements.

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Mar 31, 2017

b) Terms I rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of the liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Contingent liabilities not provided for in respect of:

a) Claims against the Company not acknowledged as debts amounting to Rs. 19,445 (Previous year Rs. 384,495).

b) Disputed service tax demand (net of provision of Rs. 16,758,179, previous year Rs. 16,758,179) aggregating to Rs. 38,718,205 (Previous year Rs. 3,274,137) against which the Company has preferred an appeal. The Company has deposited up to 31 March 2017 Rs. 14,643,824 (Previous year Rs. 12,730,783) under protest.

c) Disputed Income Tax demand aggregating to Rs. 7,458,870 (Previous year Rs. 9,233,710) against which the Company has preferred Appeal / for rectification of mistakes u/s 154 of the Income Tax Act 1961. Based on the interpretation of the provisions of the Income Tax Act, 1961, the management is of the opinion that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

2. Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 2,157,802 (Previous year Rs. 13,131,186).

b) Uncalled capital commitment in respect of investment in Real Estate Funds Rs. 6,750,000 (Previous year Rs. 10,400,000).

3. Disclosure under (AS) -15 (Revised 2005):

The Company has provided gratuity based on actuarial valuation done as per Projected Unit Credit Method.

i) Retirement benefits in the form of provident fund are a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

ii) Gratuity liability is a defined benefit obligation and has been provided on the basis of an actuarial valuation made at the end of each financial year.

The Company has classified the various benefits provided to employees as under:

II. Defined benefit plan:

The Company makes annual contributions to the Employees’ Group Gratuity of the Life Insurance Corporation (LIC), a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Company’s policy whichever is beneficial to the employees.

The following table sets out the amounts recognized in the Company’s financial statements as at 31 March 2017.

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

f) Amount recognized in current year and previous four years:-

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets.

g) The expected contribution for Defined Benefit Plan for the next financial year will be in line with FY 2016-17.

4. Segment reporting:

The Company operates in a single primary business segment i.e. “IT Training in Hardware and Networking”. Hence, there are no reportable segments as per Accounting Standard (AS) -17 “Segment Reporting”. The secondary segment, i.e. ‘geographical segments by location of customers’ is given below:

Notes:

5. The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS) - 18 “Related Party Disclosures” and the same have been relied upon by the Auditors.

6. The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exists.

Note: As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to the key management personnel and their relatives is not ascertainable and, therefore, not included above.

# The Company has made the payment of remuneration to directors amounting to Rs. 20,709,534 (previous year Rs. 20,709,534). However, in the view of inadequacy of profits, the Company had made the payment of remuneration in accordance with the approval received from the Central Government.

7. Leases:

a. The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

b. The future minimum lease payments as per the operating lease under non-cancellable lease terms are as follows:

The amount of minimum lease payments with respect to operating lease recognized in the statement of profit and loss for the year is Rs. 7,962,195 (previous year Rs. 11,678,295).

Above disclosure is for leases entered after 1 April 2001, as per Accounting Standard (AS) -19 ‘Leases’.

8. There is no impairment loss on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 “Impairment of Assets”.

9. Foreign currency exposures that are not hedged by derivative instruments as at 31 March 2017 is as follows:

Figures in bracket are for the previous year.

10. Income and Expenditure in foreign currency:

a) Income in foreign currency: (On accrual basis)

11. a) In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

b) Balances of certain trade receivables, trade payables and advances given are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

12. DISCLSOURE ON SPECIFIED BANK NOTES (SBNs)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:

* represents amounts received from the students as training fees at Company’s own centers, which are not permitted receipts.

For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

13. During the previous year, the Company had filed an arbitration proceeding against a Broker/Sub-broker for an unauthorized trade taken place in NSE F&O segment for an aggregate amount of Rs. 3,677,269. The Company has preferred an appeal before the Hon’ble Arbitral Tribunal of the National Stock Exchange of India Limited (Mumbai Regional Centre) on 24 May 2016. The Order has been received in favour of the Company. Subsequent to the Order, the Broker/Sub-broker has filed an appeal in Hon’ble High Court against the Order of Arbitral Tribunal. The appeal has been admitted and the Hon’ble High Court has given the liberty to apply for final hearing after Diwali vacation 2017. Necessary adjustments will be made, if required in books of account based on outcome of High Court proceedings in the matter.

14. Previous year figures have been regrouped or rearranged, wherever considered necessary to conform with the current year’s presentation.

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Mar 31, 2015

1) Terms / rights attached to Equity shares

The Company has only one class of equity shares having a par value of RS.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2015, the amount of per share dividend recognised as distributions to equity shareholders is Re. 1 ; (Previous year Re.1).

In the event of the liquidation of the Company, the holder of equity shares will be entitled to received remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Contingent liabilities not provided for in respect of:

a. Disputed service tax demand (net of provision of RS. 16,758,179, previous year RS. 16,758,179) aggregating to RS. 3,274,137 (As at March 31, 2014 RS. 3,274,137) against which the Company has preferred an appeal. The Company has deposited upto March 31,2015 RS. 11,116,486 (Upto March 31, 2014 RS. 11,116,486) under protest.

b. Disputed Income Tax demand aggregating to RS. 1,774,480 (As at March 31,2014 RS. 4,181,536) against which the Company has preferred an Appeal / for rectification of mistakes under Section 154 of the Income Tax Act, 1961. The Company has adjusted refund upto March 31,2015 RS. Nil (As at March 31, 2014 RS. 2,006,116). Based on the interpretation of the provisions of the Income Tax Act, 1961, the management is of the opinion that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

c. Disputed TDS demand aggregating to RS. Nil (As at March 31, 2014 RS. 145,020) against which the Company has preferred for filling a revised return. Based on the interpretation of the provisions of the Income Tax Act, 1961, the management is of the opinion that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

3. Commitments

a) Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) RS. 7,056,210 (Previous year RS. 9,207,578).

b) Uncalled capital commitment in respect of investment in IDFC Real Estate Yield fund RS. 7,350,000 (Previous year RS. 13,500,000)

c) Uncalled capital commitment in respect of investment in ASK Real Estate Special Opportunities Fund -II fund RS. 9,500,000 (Previous year RS. Nil)

4. Disclosure under (AS) -15 (Revised 2005):

The Company has provided gratuity based on actuarial valuation done as per Projected Unit Credit Method.

i) Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

ii) Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year.

5. Defined benefit plan:

The Company makes annual contributions to the Employees'' Group Gratuity of the Life Insurance Corporation (LIC), a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation / termination in terms of the provisions of the Payment of Gratuity Act or as per the Company''s policy whichever is beneficial to the employees.

6. The Company has made the payment of remuneration to directors amounting to RS. 20,602,776. However, in the view of inadequacy of profits the Company has made the payment of remuneration amounting to RS. 18,616,930 from 1 April 2014 to 24 February 2015 in accordance with the approval received from the Central Government. Remuneration amounting to RS. 1,985,846 for the balance period i.e. 25 February 2015 to 31 March 2015 is paid, for which the Company is in process of making an application to Central Government for approval.

7. Leases:

a. The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

8. There is no impairment loss on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 "Impairment of Assets".

9. a. In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

b. Balances of certain trade receivables, trade payables and advances given are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

10. Previous year figures have been regrouped or rearranged, wherever considered necessary to conform with the current years presentation.

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Mar 31, 2014

1. Contingent liabilities not provided for in respect of:

a. Disputed service tax demand (net of provision of Rs. 16,758,179, previous year Rs. 16,758,179) aggregating to Rs. Nil (As at March 31, 2013 Rs. Nil) against which the Company has preferred an appeal. The Company has deposited upto March 31, 2014 Rs. 12,730,783 (Upto March 31, 2013 Rs. 12,730,783) under protest.

b. Disputed Income Tax demand aggregating to Rs. 4,181,536 (As at March 31, 2013 Rs. Nil) against which the Company has preferred an Appeal / for rectification of mistakes under Section 154 of the Income Tax Act, 1961. The Company has adjusted refund upto March 31, 2014 Rs. 2,006,116 (As at March 31, 2013 Rs. Nil) Based on the interpretation of the provisions of the Income Tax Act, 1961, the management is of the opinion that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

c. Disputed TDS demand aggregating to Rs. 145,020 (As at March 31, 2013 Rs. Nil) against which the Company has preferred for filling a revised return. Based on the interpretation of the provisions of the Income Tax Act, 1961, the management is of the opinion that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

2. Commitments

a) Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) Rs. 9,207,578 (Previous year Rs. 12,894,139).

b) Uncalled capital commitment in respect of investment in IDFC Real Estate Yield fund Rs. 13,500,000 '' (Previous year Rs. Nil)

3. a. In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

b. Balances of certain trade receivables, trade payables and advances given are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation /adjustments.

4. Disclosure under (AS) -15 (Revised 2005):

The Company has provided leave encashment and gratuity based on actuarial valuation done as per Projected Unit Credit Method.

i) Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

ii) Gratuity and leave encashment liability are defined benefit obligation and are provided for on the basis of an actuarial valuation made at the end of each financial year.

II. Defined benefit plan:

The Company makes annua contributions to the Employees'' Group Gratuity of the Life Insurance Corporation (LIC), a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Company''s policy whichever is beneficial to the employees.

The following table sets out the amounts recognized in the Company''s financial statements as at 31 March 2014.

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets.

5. Segment reporting:

The Company operates in a single primary business segment i.e. "IT Training in Hardware and Networking". Hence, there are no reportable segments as per Accounting Standard (AS) - 17 "Segment Reporting" notified by Companies (Accounting Standards) Rules, 2006. The Company does not have any reportable geographical segment.

6. In the view of inadequacy of profits during the year, remuneration paid/payable to directors, amounting to Rs. 19,253,534 is in accordance with the approval received from the Central Government.

7. Leases:

a. The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

8. There is no impairment ions on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 "Impairment of Assets" notified by Companies (Accounting Standards) Rules, 2006.

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Mar 31, 2013

1. Contingent liabilities not provided for in respect of:

Disputed service tax demand (net ot provision of Rs. 16,758,179, previous year Rs. 23,259,590) aggregating to Rs. Nil (As at March 31, 2012 Rs. Nil) against which the Company has preferred an appeal. The Company has deposited upto March 31, 2013 Rs. 12,730,784 (Upto March 31, 2012 Rs. 12,730,784) under protest.

2. Commitments

a. Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) Rs. 12,894,139 (Previous year Rs. 11,259,050).

b. Other commitments Rs. NIL (Previous year Rs. 10,865,956) in respect of digitization work.

3. a. In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

b. Balances of certain trade receivables, trade payables and advances given are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

4. Disclosure under (AS) -15 (Revised 2005):

The Company has provided leave encashment and gratuity based on actuarial valuation done as per Projected Unit Credit Method.

i) Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

ii) Gratuity and leave encashment liability are defined benefit obligation and are provided for on the basis of an actuarial valuation made at the end of each financial year.

The Company has classified the various benefits provided to employees as under:

I. Defined contribution plans:

Contributions to defined contribution plans recognized as expense for the year are as under:

II. Defined benefit plan:

The Company makes annual contributions to the Employees'' Group Gratuity of the Life Insurance Corporation (LIC), a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Company''s policy whichever is beneficial to the employees.

5. Segment reporting:

The Company operates in a single primary business segment i.e. "IT Training in Hardware and Networking". Hence, there are no reportable segments as per Accounting Standard (AS) - 17 "Segment Reporting" notified by Companies (Accounting Standards) Rules, 2006. The Company does not have any reportable geographical segment.

6. In view of inadequacy of profits for the year 2012-13, remuneration paid/payable to directors, which is in excess by Rs. 13,627,245 of the limits prescribed under Section 198 read with Schedule XIII of the Companies Act, 1956 which is subject to the approval of the Central Government. Pending approval of the Central Government, an amount of Rs. 13,214,945 being excess remuneration paid in the year 2012-13 is being held in trust by the directors. Subsequent to the year end, the Company has made an application to the Central Government for the approval and approval is still awaited.

7. Leases:

a. The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

b. The future minimum lease payments as per the operating lease under non-cancellable lease terms are as follows:

8. There is no impairment loss on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 "Impairment of Assets" notified by Companies (Accounting Standards) Rules, 2006.

9. The Company is in the process of appointment of Company Secretary as required under Section 383A of The Companies Act, 1956.

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Mar 31, 2012

1. Contingent liabilities not provided for in respect of:

a. Disputed service tax demand (net of provision of Rs. 23,259,590, previous year Rs. 16,758,179) aggregating to Rs. Nil (As at March 31,2011 Rs. 8,375,727) against which the Company has preferred an appeal. The Company has deposited upto March 31,2012 Rs. 12,730,784 (Upto March 31, 2011 Rs. 12,730,784) under protest and also paid Rs. 4,437,588 subsequent to the balance sheet date.

b. Uncalled Capital commitment in respect of investments in Reliance Alternative Investments Fund - Private Equity Scheme I, Rs. Nil (Previous year Rs. 6,500,000).

2. Commitments

a. Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) Rs. 11,259,050 (Previous year Rs. 67,226,300).

b. Other commitments Rs. 10,865,956 (Previous year Rs.15,000,000) in respect of digitization work.

3. a. In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course

of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

b. Balances of certain trade receivables, trade payables and advances given are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

4. Disclosure under (AS) -15 (Revised 2005):

The Company has provided leave encashment and gratuity based on actuarial valuation done as per Projected Unit Credit Method.

i) Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

ii) Gratuity and leave encashment liability are defined benefit obligation and are provided for on the basis of an actuarial valuation made at the end of each financial year.

The Company has classified the various benefits provided to employees as under:

II. Defined benefit plan:

The Company makes annual contributions to the Employees' Group Gratuity of the Life Insurance Corporation (LIC), a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Company's policy whichever is beneficial to the employees.

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets.

5. Segment reporting:

The Company operates in a single primary business segment i.e. "IT Training in Hardware and Networking". Hence, there are no reportable segments as per Accounting Standard (AS) - 17 "Segment Reporting" notified by Companies (Accounting Standards) Rules, 2006. The Company does not have any reportable geographical segment.

Notes:

1. The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS) - 18 "Related Party Disclosures" notified by Companies (Accounting Standards) Rules, 2006 and the same have been relied upon by the Auditors.

2. The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exists.

Note: As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to the key management personnel and their relatives is not ascertainable and, therefore, not included above.

6. Leases:

a. The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

7. There is no impairment loss on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 "Impairment of Assets" notified by Companies (Accounting Standards) Rules, 2006.

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Mar 31, 2011

1. Contingent liabilities not provided for in respect of:

a. The Company has been floating 100 % money back guarantee scheme to students over the years. During the year, the Company has given assurance to Nil (previous year 28) number of students for getting jobs on completion of the course. The Company estimates the possible liability in this regard to the tune of Rs. Nil (previous year Rs. 1,438,838).

b. Disputed service tax demand (net of provision of Rs.16,758,179) aggregating to Rs. 8,375,727 (As at March 31, 2010 Rs. 8,375,727) against which the Company has preferred an appeal. The Company has deposited upto March 31, 2011 Rs. 12,730,784 (Upto March 31, 2010 Rs. 10,792,718) under protest.

c. Disputed income tax demands Rs. Nil (As at 31 March 2010 Rs. 165,122)

d. Uncalled Capital commitment in respect of investments in Reliance Alternative Investments Fund - Private Equity Scheme I, Rs. 6,500,000 (previous year Rs. 8,500,000).

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 66,984,800 (previous year Rs. Nil).

3. Miscellaneous income includes Rs. 591,192 (previous year Rs. 2,121,373) being unspent liabilities, excess provision and unclaimed balances in respect of earlier years written back.

4. Deferred tax assets / liabilities (net):

Major component of deferred tax balance as at the year end accounted in accordance with the Accounting Standard (AS) – 22 “Accounting for Taxes on Income” notified by Companies (Accounting Standards) Rules, 2006.

5. a. In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

b. Balances of certain debtors, creditors and advances given are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

6. The Company is in the process of compiling relevant information from its suppliers about their coverage under the Micro, Small and Medium Enterprises Development Act, 2006. As the Company has not received any intimation from its suppliers as on date regarding their status under the above said Act, no disclosure has been made.

7. Advances recoverable in cash or in kind or for value to be received includes Rs. 2,422,962 given to one of the Director against salary. During the year, remuneration paid to Directors were based on the application made to the Central Government for approval. However, subsequently approval for one director was received for lesser amount. The Company has written a letter to the Central Government for the rectification in the approval letter. Thus, the difference between the amount paid and approval received from Central Government is shown as advance against salary.

8. Disclosure under (AS) -15 (Revised 2005):

The Company has provided leave encashment and gratuity based on actuarial valuation done as per Projected Unit Credit Method.

i) Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

ii) Gratuity and leave encashment liability are defined benefit obligation and are provided for on the basis of an actuarial valuation made at the end of each financial year.

The Company has classified the various benefits provided to employees as under:

II. Defined benefit plan:

The Company makes annual contributions to the Employees' Group Gratuity of the Life Insurance Corporation (LIC), a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Company's policy whichever is beneficial to the employees.

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets.

09. Segment reporting:

The Company operates in a single primary business segment i.e. “IT Training in Hardware and Networking”. Hence, there are no reportable segments as per Accounting Standard (AS) - 17 “Segment Reporting” notified by Companies (Accounting Standards) Rules, 2006. The Company does not have any reportable geographical segment.

10. Related party disclosures:

I) Related party relationship:

a) Key management personnel a) Mr. Suresh G. Bharwani

b) Mr. Nandu G. Bharwani

b) Relatives of key management a) Mr. Jitu G. Bharwani – Brother of personnel Suresh Bharwani and Nandu Bharwani

b) Anisha Bharwani – Wife of Suresh G. Bharwani

c) Harsh Bharwani – Son of Suresh G. Bharwani

d) Avinash Bharwani – Son of Suresh G. Bharwani

e) Siddarth Bharwani – Son of Suresh G. Bharwani

f) Dipti Bharwani – Wife of Nandu G. Bharwani

g) Urvashi Bharwani – Daughter of Nandu G. Bharwani

h) Ritika Bharwani - Daughter of Nandu G. Bharwani

c) Enterprises on which key Jetking Smartrain Academy Pvt. Ltd. management personnel or their relatives has significant influence

Notes:

1. The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS) – 18 “Related Party Disclosures” notified by Companies (Accounting Standards) Rules, 2006 and the same have been relied upon by the Auditors.

2. The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exists.

11. Leases:

a. The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

b. The amount of minimum lease payments with respect to the above lease recognized in the profit and loss account for the year is Rs. 6,351,331 (previous year Rs. 8,722,675).

Above disclosure is for leases entered after 1 April 2001, as per Accounting Standard (AS) - 19 'Leases' notified by Companies (Accounting Standards) Rules, 2006.

12. There is no impairment loss on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 “Impairment of Assets” notified by Companies (Accounting Standards) Rules, 2006.

13. Additional information pursuant to Part II of Schedule VI to the Companies Act, 1956:

a) Quantitative details of education and training materials

Quantitative/ value information: (As certified by the management)

14. The Company is in the process of appointment of Company Secretary as required under Section 383A of The Companies Act, 1956.

15. Previous year's figures have been rearranged or regrouped, wherever considered to conform to the current year's presentation.

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Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

a. The Company has been floating 100 % money back guarantee scheme to students over the years. During the year, the Company has given assurance to 28 (previous year 79) number of students for getting jobs on completion of the course. The Company estimates the possible liability in this regard to the tune of Rs 1,438,838 (previous year Rs. 3,503,802).

b. Disputed service tax demand (net of provision of Rs.16,426,134) aggregating to Rs. 8,375,727 (As at March 31, 2009 Rs. 8,375,727) against which the Company has preferred an appeal. The Company has deposited upto March 31, 2010 Rs. 10,792,718 (Upto March 31, 2009 Rs. 10,792,718) under protest.

c. Disputed income tax demands aggregating to Rs. 165,122 (As at March 31,2009 Rs. 165,122) against which the Company has preferred an appeal. The Company has deposited upto March 31, 2010 Rs. 165,122 (Upto March 31, 2009 Rs. 165,122) under protest.

d. Uncalled Capital commitment in respect of investments in Reliance Alternative Investments Fund- Private Equity Scheme I, Rs.8,500,000 (previous year Rs. Nil).

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. Nil (previous year Rs. 1,519,520).

3. Miscellaneous income includes Rs. 2,121,273 (previous year Rs 882,232) being unspent liabilities, excess provision and unclaimed balances in respect of earlier years written back.

4. Share / Compensation of franchisee fees represents the royalty, franchisee fees, etc. paid / payable to a franchisee pursuant to a consent terms issued by High Court of Gujarat at Ahmedabad District Vadodara dated 29 March 2010, and agreed between the Company and a Franchisee.

5. a. In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

b. Balances of certain debtors, creditors and advances given are subject to confirmation / reconciliation, if any. The management does not expect any material difference affecting the financial statements on such reconciliation / adjustments.

6. The Company is in the process of compiling relevant information from its suppliers about their coverage under the Micro, Small and Medium Enterprises Development Act, 2006. As the Company has not received any intimation from its suppliers as on date regarding their status under the above said Act, no disclosure has been made.

7. Disclosure under (AS) -15 (Revised 2005):

The Company has provided leave encashment and gratuity based on actuarial valuation done as per Projected Unit Credit Method.

i) Retirement benefits in the form of Provident Fund are a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts.

ii) Gratuity and leave encashment liability are defined benefit obligation and are provided for on the basis of an actuarial valuation made at the end of each financial year.

II. Defined benefit plan:

The Company makes annual contributions to the Employees Group Gratuity of the Life Insurance Corporation (LIC), a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Companys policy whichever is beneficial to the employees.

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets.

8. Segment reporting:

The Company operates in a single primary business segment i.e. "IT Training in Hardware and Networking". Hence, there are no reportable segments as per Accounting Standard (AS) -17 "Segment Reporting" issued by The Institute of Chartered Accountants of India. The Company does not have any reportable geographical segment.

9. Related party disclosures:

I) Related party relationship:

a) Key management personnel

a) Mr. Suresh G. Bharwani

b) Mr. Nandu G. Bharwani

b) Relatives of key management personnel

a) Mr. Jitu G. Bharwani - Brother of Suresh Bharwani and Nandu Bharwani

b) Anisha Bharwani - Wife of Suresh G. Bharwani

c) Harsh Bharwani - Son of Suresh G. Bharwani

d) Avinash Bharwani - Son of Suresh G.Bharwani

e) Siddarth Bharwani - Son of Suresh G.Bharwani

f) Dipti Bharwani-Wife of Nandu G.Bharwani

g) Urvashi Bharwani - Daughter of Nandu G. Bharwani

h) Ritika Bharwani - Daughter of Nandu G. Bharwani

c) Enterprises on which key management Jetking Smartrain Academy Pvt. Ltd. personnel or their relatives has signiticant influence

10. Leases:

a. The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

11. The Company is in the process of appointment of Company Secretary as required under Section 383A of The Companies Act, 1956.

12. Previous years figures have been rearranged or regrouped, wherever considered to conform to the current years presentation.