Mar 31, 2015
A) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, actuals
results could differ from these estimates.
B) valuation-fixed Assets and Inventory
(I) Fixed assets are normally accounted for on cost basis including the
cost of installation where incurred. Expenditure on regular staff,
which might be occasionally engaged for installation work, is charged
to revenue.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
(II) Inventory:-
(i) Stock of books are valued at cost based on First-in First-out
method.
(ii) Softwares under development & intended for sale and not ready for
use before the year end, are valued at cost as Software Work-in-
Progress
C) Depreciation and Amortisation
(a) Depreciation on all the fixed assets is provided on Straight Line
Method at the rates prescribed in schedule -II to the Companies Act,
2013.
(b) Depreciation on additions/ deletions to Fixed Assets is provided on
prorata basis from/to date of additions/deletions.
(c) In case of financial period consist of the year less/more than a
normal year of 12 months then depreciation is provided for that
particular period.
(d) In case of courseware/software developed and capitalised , the same
is written off over a period of 3 years, considering the estimated
economic life of the product.
D) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use.
E) Investments
Long-term Investments, are valued at their acquisition cost. Any
decline in the value of said investment other than the temporary
decline is recognised and charged to Profit & Loss Account.
F) Revenue Recognition
a) (i) In case of own centres income from coaching fee is recognised to
the extent of course/programme delivered to students. Income from
courseware is recognised on the basis of courseware supplied to the
students/clients.
(ii) In Case of domestic licence centres, the income is recognised on
the basis of collections received from licenced against course fee.
Income from courseware is recognised on the basis of courseware
supplied to the licence centre.
b) Income from Technical Know How/ Licence Fees are recognised on the
basis of Agreement/MOU entered subject to realisation of the income.
c) In respect of Software Development/Products and Consultancy
activities, the revenue is recognised on dispatch/ delivery of the
concerned goods/services by adopting percentage completion method
wherever required.
g) Public Issue Expenses and Pre-Operative Expenses
Public issue expenditure and pre-operative expenses incurred on further
issue of Share Capital are written off over a period of ten years on
prorata basis.
h) Foreign Currency Transactions
Transactions in foreign currency are booked at pre-determined rate and
all monetary assets and liabilities in foreign currency are restated at
the period end.
Gain / Loss arising out of fluctuations on realisation / payment or
restatement , except those identifiable to acquisition of fixed assets
& Investment are charged /credited to Profit & Loss Account.
i) Employees' / Retirement Benefits
a) All employees of the Company are entitled to receive benefits under
the Provident Fund, which is a defined contribution plan.
b) In addition, some employees of the Company are covered under the
employees' state insurance schemes.
c) The Company's contributions to above schemes are expensed in the
Profit and Loss Account.
d) Liability on account of Gratuity and Leave Encashment of Employees
is provided on accrual basis.
j) Taxation
Income tax expenses are accrued in accordance with Accounting Standard
-22 " Accounting for Taxes on Income, issued by The Institute of
Chartered Accountants of India, which includes current taxes and
deferred taxes. Deferred income tax reflects the impact of current year
timing difference between taxable income and accounting income for the
year and reversal of timing differences of earlier years. Deferred tax
assets are recognised only to extent, there is a reasonable certainty
that sufficient future taxable income will be available. Such Deferred
tax Assets and Liabilities are measured at each Balance Sheet date &
the carrying value of the same are adjusted for recognising the change
in the value of each such deferred tax Asset and Liability.
k) Borrowing Cost
Interest and other costs in connection with the borrowing of funds to
the extent related/attributed to the acquisition/ construction of
qualifying fixed assets are capitalized upto the date when such assets
are ready for its intended use and other borrowing costs are charged to
Profit & Loss Account.
l) Provision and Contingencies
The Company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a Contingent Liability is made when there is a possible
obligation that probably will not require an outflow of resources or
where a reliable estimate of the obligation can not be made. These are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
m) Segment reporting
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
n) Earnings per share
Basic earning per share (EPS) is calculated by dividing the net profit
after tax for the year (including the post-tax effect of extraordinary
items, if any) attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
period are adjusted for the effects of all dilutive potential equity
shares.
o) Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
p) Cash and cash equivalents
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments.
The cash flows from regular revenue generating, financing, and
investing activities of the company are segregated.
Jun 30, 2013
A) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, actuals
results could differ from these estimates.
b) Valution-Fixed Assets and Inventory
(I) Fixed assets are normally accounted for on cost basis including the
cost of installation where incurred. Expenditure on regular staff,
which might be occasionally engaged for installation work, is charged
to revenue,
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
Al other expenses on existing fixed assets, including day-to-day repair
and maintenance expenditure and cost of replacing parts, are charged to
the statement of profit and loss for the period during which such
expenses are incurred.
(II) Inventory:-
(i) Stock of books are valued at cost based on First-in First-out
method.
(ii) Softwares under development & intended for sale and not ready for
use before the year end, are valued at cost as Software
Work-in-Progress
c) Depreciation and Amortisation
(a) Normal Depreciation on all the fixed assets is provided on Straight
Line Method at the rates prescribed in schedule -XIV to the Companies
Act 1956.
(b) Depreciation on additions/ deletions to Fixed Assets is provided on
prorata basis from/to date of additions/deletions.
(c) In case of financial period consist of the year less/more than a
normal year of 12 months then depreciation is provided for that
particular period.
(d) In case of courseware/software developed and capitalised, the same
is written off over a period of 3 years, considering the estimated
economic life of the product.
d) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An imparmen! loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset''s net selling price and value in use.
e) Investments
Long-term Investments, are valued at their acquisition cost. Any
decline in the value of said investment other than the temporary
decline is recognised and charged to Profit & Loss Account.
f) Revenue Recognition
a.(i) In case of own centres income from coaching fee is recognised to
the extent of course/programme delievered to students. Income from
courseware is recognised on the basis of courseware supplied to the
students/clients. (ii) In Case of domestic licence centres, the income
is recognised on the basis of collections received from licencee
against course fee. Income from courseware is recognised on the basis
of courseware supplied to the licence centre.
b. Income from Technical Know How/ Licence Fees are recognised on the
basis of Agreement/MOU entered subject to realisation of the income.
c. In respect of Software Development/Products and Consultancy
activities, the revenue is recognised on dispatch/ delivery of the
concerned goods/services by adopting percentage completion method
wherever required.
g) Public Issue Expenses and Preoperative Expenses
Public issue expenditure and pre-operative expenses incurred on further
issue of Share Capital are written off over a period of ten yean; on
prorata basis. h) Foreign Currency Transactions
Transactions in foreign currency are booked at pre-determined rate and
all monetary assets and liabilities in foreign currency are restated at
the period end.
Gain / Loss arising out of fluctuations on realisation / payment or
restatement, except those identifiable to acquisition of fixed assets &
Investment are charged /credited to
Profits Loss Account. i) Employees'' I Retirement Benefits
a. All employees of the Company are entitled to receive benefits under
the Provident Fund, which is a defined contribution plan.
b. In addition, some employees of the Company are covered under the
employees'' state insurance schemes.
c. The Company''s contributions to above schemes are expensed in the
Profit and Loss Account.
d. Liability on account of Gratuity and Leave Encashment of Employees
is provided on accrual basis. j) Taxation
Income tax expenses are accrued in accordance with Accounting Standard
-22'' Accounting for Taxes on Income, issued by The Institute of
Chartered Accountants of India, which includes current taxes and
deferred taxes. Deferred income tax reflects the impact of current year
timing difference between taxable income and accounting income for the
year and reversal of timing differences of earlier years. Deferred tax
assets are recognised only to extent, there is a reasonable certainty
that sufficient future taxable income will be available. Such Deferred
tax Assets and Liabilities are measured at each Balance Sheet date £
the carrying value of the same are adjusted for recognising the change
in the value of each such deferred tax Asset and Liability.
k) Borrowing Cost
Interest and other costs in connection with the borrowing of funds to
the extent related/attributed to the acquisition/ construction of
qualifying fixed assets are capitalized upto the date when such assets
are ready for its intended use and other borrowing costs are charged to
Profit & Loss Account.
I) Provlson and Contingencies
The Company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resourcesand
a reliable estimate can be made of the amount of obligation. A
disclosure for a Contingent Liability is made when there is a possible
obligation that probably will not require an outflow of resources or
where a reliable estimate of the obligation can not be made. These are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
m) Segment reporting
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
n) Earnings per share
Basic earning per share (EPS) is calculated by dividing the net profit
after tax for the year (including the post-tax effect of extraordinary
items, if any) attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
period are adjusted for the effects of all dilutive potential equity
shares. o) Provisions A provision is recognized when the Company has a
present obligation as a result of past event, it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount
of the obligation. Provisions are not discounted to their present value
and are determined based on the best estimate required to settle the
obligation at the reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates.
p) Cash and cash equivalents Cash flows are reported using the indirect
method, whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or accruals of past
or future cash receipts or payments.
The cash flows from regular revenue generating, financing, and
investing activities of the company are segregated.
Mar 31, 2012
A) Change in accounting policy
Presentation and disclosure of financial statements
During the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the Company,
forpreparation and presentation of its financial statements. The
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, actuals
results could differ from these estimates.
c) Valution-Fixed Assets and Inventory
(I) Fixed assets are normally accounted for on cost basis including the
cost of installation where incurred. Expenditure on regular staff,
which might be occasionally engaged for installation work, is charged
to revenue.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
(II) Inventory:-
(i) Stock of books are valued at cost based on First-in First-out
method.
(ii) Softwares under development & intended for sale and not ready for
use before the year end, are valued at cost as Software
Work-in-Progress
d) Depreciation and Amortisation
(a) Normal Depreciation on all the fixed assets is provided on Straight
Line Method at the rates prescribed in schedule -XIV to the Companies
Act, 1956.
(b) Depreciation on additions/ deletions to Fixed Assets is provided on
prorata basis from/to date of additions/deletions
(c) In case of financial year consist of the year less/more than a
normal year of 12 months then depreciation is provided for that
particular year.
(d) In case of courseware/software developed and capitalised , the same
is written off over a period of 3 years, considering the estimated
economic life of the product.
e) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An imparment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use.
f) Investments
Long-term Investments, are valued at their acquisition cost. Any
decline in the value of said investment other than the temporary
decline is recognised and charged to Profit & Loss Account.
g) Revenue Recognition
a. (i) In case of own centres income from coaching fee is recognised
to the extent of course/programme delievered to students. Income from
courseware is recognised on the basis of courseware supplied to the
students/clients.
(ii) In case of domestic licence centres, the income is recognised on
the basis of collections received from licencee against course fee.
Income from courseware is recognised on the basis of courseware
supplied to the licence centre.
b. Income from Technical Know How/ Licence Fees are recognised on the
basis of Agreement/MOU entered subject to realisation of the income.
c. In respect of Software Development/Products and Consultancy
activities, the revenue is recognised on dispatch/ delivery of the
concerned goods/ services by adopting percentage completion method
wherever required.
h) Public Issue Expenses and Pre-Operative Expenses
Public issue expenditure and pre-operative expenses incurred on further
issue of Share Capital are written off over a period of ten years on
prorata basis.
i) Foreign Currency Transactions
Transactions in foreign currency are booked at pre-determined rate and
all monetary assets and liabilities in foreign currency are restated at
the year end. Gain / Loss arising out of fluctuations on realisation /
payment or restatement , except those identifiable to acquisition of
fixed assets & Investment are charged /credited to Profit & Loss
Account.
j) Employees' / Retirement Benefits
a. All employees of the Company are entitled to receive benefits under
the Provident Fund, which is a defined contribution plan.
b. In addition, some employees of the Company are covered under the
employees' state insurance schemes
c. The Company's contributions to above schemes are expensed in the
Profit and Loss Account.
d. Liability on account of Gratuity and Leave Encashment of Employees
is provided on the actuarial Valuation.
k) Taxation
Income tax expenses are accrued in accordance with Accounting Standard
-22 " Accounting for Taxes on Income, issued by The Institute of
Chartered Accountants of India, which includes current taxes and
deferred taxes. Deferred income tax reflects the impact of current year
timing difference between taxable income and accounting income for the
year and reversal of timing differences of earlier years. Deferred tax
assets are recognised only to extent, there is a reasonable certainty
that sufficient future taxable income will be available. Such Deferred
tax Assets and Liabilities are measured at each Balance Sheet date &
the carrying value of the same are adjusted for recognising the change
in the value of each such deferred tax Asset and Liability.
l) Borrowing Cost
Interest and other costs in connection with the borrowing of funds to
the extent related/attributed to the acquisition/ construction of
qualifying fixed assets are capitalized upto the date when such assets
are ready for its intended use and other borrowing costs are charged to
Profit & Loss Account.
m) Provison and Contingencies
The Company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a Contingent Liability is made when there is a possible
obligation that probably will not require an outflow of resources or
where a reliable estimate of the obligation can not be made. These are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
n) Segment reporting
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
o) Earnings per share
Basic earning per share (EPS) is calculated by dividing the net profit
after tax for the year (including the post-tax effect of extraordinary
items, if any) attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
period are adjusted for the effects of all dilutive potential equity
shares.
p) Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
q) Cash and cash equivalents
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments.
The cash flows from regular revenue generating, financing, and
investing activities of the company are segregated.
Mar 31, 2011
1. Basis of Accounting
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting principles (ÃGAAPÃ) under the historical
cost convention on an accrual basis. GAAP comprises mandatory
Accounting Standards issued by the Institute of Chartered Accountants
of India (ÃICAIÃ), the provisions of the Companies Act, 1956, and
guidelines issued by the Securities and Exchange Board of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use. The Management evaluates all recently issued or
revised accounting standards on an ongoing basis.
2. Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires the management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent assets and liabilities as at the date of the
financial statements and reported amounts of income and expenses during
the period. Although these estimates are based upon Managements best
knowledge of current events and ections, actuals results could differ
from these estimates.
3. Valution-Fixed Assets and Inventory
(a) Fixed assets are normally accounted for on cost basis including the
cost of installation where incurred. Expenditure on regular staff,
which might be occasionally engaged for installation work, is charged
to revenue.
(b) Inventory:-
(i) Stock of books are valued at cost based on First-in First- out
method.
(ii) Softwares under development & intended for sale and not ready for
use before the year end, are valued at cost as Software Work-in-
Progress.
4. Depreciation and Amortisation
(a) Normal Depreciation on all the fixed assets is provided on Straight
Line Method at the rates prescribed in schedule -XIV to the Companies
Act, 1956.
(b) Depreciation on additions/ deletions to Fixed Assets is provided on
prorata basis from/to date of addition/deletions.
(c) In case of financial year consist of the year less/more than a
normal year of 12 months then depreciation is provided for that
particular year.
(d) In case of courseware/software developed and capitalised, the same
is written off over a period of 3 years, considering the estimated
economic life of the product.
5. Impairment of assets
The carrying amount of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An imparment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets net selling price and value in use.
6. Investments
Long-term Investments, are valued at their acquisition cost. Any
decline in the value of said investment other than the temporary
decline is recognised and charged to Profit & Loss Account.
7. Revenue Recognition
a. (i) In case of own centres income from coaching fee is recognised
to the extent of course/programme delievered to students. Income from
courseware is recognised on the basis of courseware supplied to the
students/clients.
(ii) In Case of domestic licence centres, the income is recognised on
the basis of collections received from licencee against course fee.
Income from courseware is recognised on the basis of courseware
supplied to the licence centre.
b. Income from Technical Know How/ Licence Fees are recognised on the
basis of Agreement/MOU entered subject to realisation of the income.
c. In respect of Software Development/Products and Consultancy
activities, the revenue is recognised on dispatch/ delivery of the
concerned goods/ services by adopting percentage completion method
wherever required.
8. Public Issue Expenses and Pre-Operative Expenses
Public issue expenditure and pre-operative expenses incurred on further
issue of Share Capital are written off over a period of ten years on
prorata basis.
9. Foreign Currency Transactions
Transactions in foreign currency are booked at pre-determined rate and
all monetary assets and liabilities in foreign currency are restated at
the year end.
Gain /Loss arising out of fluctuations on realisation /payment or
restatement, except those identifiable to acquisition of fixed assets &
Investment are charged /credited to Profit & Loss Account.
10. Employees /Retirement Benefits
a. All employees of the Company are entitled to receive benefits under
the Provident Fund, which is a defined contribution plan.
b. In addition, some employees of the Company are covered under the
employeesà state insurance schemes.
c. The CompanyÃs contributions to above schemes are expensed in the
Profit and Loss Account.
d. Liability on account of Gratuity and Leave Encashment of Employees
is provided on the actuarial Valuation.
11. Taxation
Income tax expenses are accrued in accordance with Accounting Standard
-22 " Accounting for Taxes on Income, issued by The Institute of
Chartered Accountants of India, which includes current taxes and
deferred taxes. Deferred income tax reflects the impact of current
year timing difference between taxable income and accounting income for
the year and reversal of timing differences of earlier years. Deferred
tax assets are recognised only to extent, there is a reasonable
certainty that sufficient future taxable income will be available. Such
Deferred tax Assets and Liabilities are measured at each Balance Sheet
date & the carrying value of the same are adjusted for recognising the
change in the value of each such deferred tax Asset and Liability.
12. Borrowing Cost
Interest and other costs in connection with the borrowing of funds to
the extent related/attributed to the acquisition/ construction of
qualifying fixed assets are capitalized upto the date when such assets
are ready for its intended use and other borrowing costs are charged to
Profit & Loss Account.
13. Provison and Contingencies
The Company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a Contingent Liability is made when there is a possible
obligation that probably will not require an outflow of resources or
where a reliable estimate of the obligation can not be made. These are
reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
14. Earning per Share
Basic earning per share (EPS) is calculated by dividing the net profit
after tax for the year (including the post-tax effect of extraordinary
items, if any) attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
period are adjusted for the effects of all dilutive potential equity
shares.
15. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, financing,
and investing activities of the company are segregated.
Sep 30, 2009
1. SYSTEM OF ACCOUNTING
Except otherwise indicated:
(a) The company adopts the accrual concept in the preparation of the
accounts.
(b) All expenditure and income are accounted for under the natural
heads of accounts.
2. VALUATION
(a) Fixed assets are normally acounted for on cost basis including the
cost of installation where incurred. Expenditure on regular staff,
which might be occasionally engaged for installation work, is charged
to revenue.
(b) Inventory:-
Stock of books are valued at cost based on First-in First-out method.
3. FIXED ASSET & DEPRECIATION
(a) Normal Depreciation on all the fixed assets is provided on Straight
Line Method at the rates prescribed in schedule -XIV to the Companies
Act, 1956.
(b) Depreciation on additions/ deletions to Fixed Assets is provided on
prorata basis from/to date of addition/deletions.
(c) In case of financial year consist of the year less/more than a
normal year of 12 months then depreciation is provided for that
particular year.
(d) In case of courseware/software developed and capitalised, the same
is written off over a period of 3 years, considering the estimated
economic life of the product.
4. INVESTMENTS
Long-term Investments, are valued at their acquisition cost. Any
decline in the value of said investment other than the temporary
decline is recognised and charged to Profit & Loss Account
5. REVENUE RECOGNITION
a. (i) In case of own centres income from coaching fee is recognised
to the extent of course/programme delievered to students. Income from
courseware is recognised on the basis of courseware supplied to the
students/clients.
(ii) In Case of domestic licence centres, the income is recognised on
the basis of collections received from licencee against course fee.
Income from courseware is recognised on the basis of courseware
supplied to the licence centre.
b. Income from Technical Know How/ Licence Fees are recognised on the
basis of Agreement/MOU entered subject to realisation of the income.
c. In respect of Software Development/Products and Consultancy
activities, the revenue is recognised on dispatch/ delivery of the
concerned goods/ services by adopting percentage completion method
wherever required.
6 PUBLIC ISSUE EXPENSES AND PRE-OPERATTVE EXPENSES
Public issue expenditure and pre-operative incurred on further issue of
Share Capital are written off over a period of ten years on prorata
basis.
7. RETIREMENTBENEFrrS
(a) Contribution to the Provident Fund and Employee State Insurance
Fund is made monthly at predetermined rates to the appropriate
authority.
(b) Provision for Gratuity is made as per the Gratuity Act, 1972.
(c) Liability on Account of Leave Encashment of Employee is provided on
the accrual basis.
8. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are booked at pre- determined rate and
all monetary assets and liabilities in foreign currency are restated at
the year end. Gain / Loss arising out of fluctuations on realisation /
payment or restatement, except those identifiable to acquisition of
fixed assets & Investment are charged / credited to Profit & Loss
Account.
9. INCOME TAX
Income tax expenses are accrued in accordance with Accounting Standard
-22 " Accounting for Taxes on Income, issued by The Institute of
Chartered Accountants of India, which includes current taxes and
deferred taxes. Deferred income tax reflects the impact of current year
timing difference between taxable income and accounting income for the
year and reversal of timing differences of earlier years. Deferred tax
assets are recognised only to extent, there is a reasonable certainty
that sufficient future taxable income will be available. Such Deferred
tax Assets and Liabilities are measured at each Balance Sheet date &
the carrying value of the same are adjusted for recognising the change
in the value of each such deferred tax Asset and Liability.
10. PROVISION & CONTINGENCIES
The Company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure for a Contingent Liability is made when there is a possible
obligation that probably will not require an outflow of resources or
where a reliable estimate of the obligation can not be made.
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