SIGNIFICANT ACCOUNTING POLICIES: (i) Basis of Accounting The company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP) and in compliance with the Accounting Standards notified under section 133 and other requirements of the Companies Act, 2013. The Preparation of financial statements in conformity with GAAP requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements. Examples of such estimates include the useful life of tangible and intangible fixed assets, provision for doubtful debts/ advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates. (ii) Revenue Recognition Revenue is recognised only when it can be reasonably measured and there exists reasonable certainty of its recovery. Minimum revenue commitment from franchisee is recognised at the time of receipt. Fees/income collected in advance for the period subsequent to the accounting period is shown as current liability. Hostel fee is recognised on accrual basis. Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend: Dividend income is recognized when the right to receive dividend is establish Gain from investment in Mutual Funds (FMPs) is recognised at the date of Maturity. (iii) Employee Benefits a. Defined Contribution plan Company's contributions paid/ payable during the year to Provident Fund and Employee Pension Scheme are recognized in the Profit and Loss Account. b. Defined Benefit Plan Company's liabilities towards gratuity , are determined using the projected unit credit method which considers each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Actuarial gain and losses are recognised immediately in the statement of Profit and Loss Account as income or expenses. Obligation measured at the brsent value of estimated future cash flows using discounted rate that is determined by reference to market yields at the balance sheet date on government bonds where the currency and terms of the Government are consistent with currency and estimated terms of the defined benefit obligation. The Company does not provide carry forward and encashment of leave. (iv) Fixed Assets Fixed Assets are stated at cost of recognition/ installation less accumulated debrciation and include directly attributable cost including installation and freight charges for bringing the assets to working condition for intended use. (v) Debrciation Leasehold land is amortised over the period of lease. Debrciation on Fixed assets is provided from the date the asset is ready for commercial use on a pro-rata basis as per useful life brscribed in Schedule II of the Companies Act, 2013. Debrciation for additions to/deletions from assets is calculated pro-rata from/to the date of addition/deletion. (vi) Intangible Assets and Amortisation Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute of Chartered Accountants of India, adopted by the company from the Financial Year 2007-08 and are amortised as follows: - Cost of Lease hold land is amortized over the period of lease. - Software - Amortised over a period of 3 years (vii) Impairment of Assets (a) At each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine: (I) The provision for impairment loss required, if any, or (II) The reversal required of impairment loss recognized in brvious periods, if any. (b) An impairment loss is recognized whenever the carrying amount of an asset or its cash generating units exceed its recoverable amount. Recoverable amount is determined: (I) in the case of an individual asset, at higher of the net selling price or value in use. (II) in the case of cash generating unit, at higher of the cash generating unit's net selling price or value in use. (viii) Investments (a) Long term investments are carried at cost after providing for any diminution in value, if such diminution is of permanent nature. (b) Current investments that are readily realizable and intended to be held for not more than a year are carried at lower of cost or market value. The determination of carrying costs of such investments is done on the basis of specific identification. (ix) Inventories Inventories are valued at lower of cost or net estimated realizable value, mainly comprises of publication and printed material. The cost of publication and printed materials have been computed on the basis of cost of materials, labour, cost of conversion and other costs incurred for bringing the inventories to their brsent location and condition. Cost is determined on FIFO method. (x) Miscellaneous Expenditure Preliminary expenses incurred on formation of the company and expenses incurred for increase in authorized capital are amortized over a period of 5 years. (xi) Foreign Currency Transactions (a) The reporting currency of the company is Indian Rupee. (b) Foreign currency transactions are recorded on initial recognition in reporting currency, using the exchange rate at the date of transaction. At each Balance sheet date, foreign currency monetary items are reported using the closing rate. The exchange differences arising on settlement of monetary items are recognised as income or expenses in the year in which they arise. (xii) Taxes on Income Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. (xiii) Provisions, Contingent Liabilities and Contingent Assets (a) Provisions are recognised for liabilities that can be measured only by using substantial degree of estimation, if (I) the company has a brsent obligation as a result of past event; (II) a probable outflow of resources is expected to settle the obligation; (III) the amount of the obligation can be reliably estimated. (b) Contingent liability is disclosed in the case of : (I) a brsent obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation; (II) a brsent obligation when no reliable estimate is possible; and (III) a possible obligation arising from past events where the probability of outflow of resources is not remote. Contingent Assets are neither recognized, nor disclosed. As per our report attached SHARP & TANNAN For and on behalf of the Board of Directors Chartered Accountants ICAI Registration no. 000452N By the hand of Pramod Maheshwari Managing Director & CEO DIN : 00185711 Om Prakash Maheshwari Executive Director & CFO DIN : 00185677 Pavan K. Aggarwal Partner Membership No. 091466 Tarun Kumar Jain GM (Corporate and Legal Affairs) and Company Secretary Pawan Kumar Lalpuria Independent Director DIN : 02016032 Place: New Delhi Date: May 26, |