| 1. Basis of Preparation of Financial Statements:
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost conversion on accrual basis, except certain tangible assets which
are being carried at revalued amounts. Pursuant to section 133 of the
Companies Act 2013 read with Rule 7 of Companies (Accounts) Rules 2014,
till the standards of accounting or any addendum thereto are prescribed
by Central Government in consultation and recommendation of the
National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act 1956, shall continue to
apply. Consequently these financial statements have been prepared to
comply in all material respects with the accounting standards notified
under Section 211 (3C) of the Companies Act, 1956 (Companies Accounting
Standards Rules, 2006 as amended) and the relevant provisions of the
Companies Act, 2013 ('the Act'). The accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
2. Use of Estimates
The preparation of the financial statements in conformity with
Generally Accepted Accounting Practices requires Management to make
estimates and assumptions that affect the reported 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 management's best knowledge of current events
and actions, actual results could differ from these estimates.
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
3. Revenue Recognition
(i) Income from Domestic transaction in the form of training fee from
students is recognized as and when received. As per the accounting
standards issued by the Institute of Chartered Accountants of India,
Revenue on account of tuition fee shall be recognized over the period
of transaction. However considering the uncertainties about the
duration of the course as well as the prolongation of the training,
income is being recognized on receipt basis.
(ii) Income from Consultancy Services is recognized on receipt basis.
(iii) Trading income & Other Incomes are accounted on accrual basis.
4. Expenditure
Company's policy is to provide for all the expenditure on accrual
basis. The purchase of software is recognized as revenue expenditure.
5. Investments
Investments are valued at cost or market price whichever is lower.
6. Foreign Currency Transactions Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of
transaction.
7. Conversion
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the values were determined.
8. Exchange Differences
Exchange differences arising on the settlement of monetary items at
rates difference from those at which they were initially recorded
during the year, or reported in previous financial expenses in the year
in which they arise.
9. Income Tax
Provision for Income Tax, comprising current tax and deferred tax, is
made on the basis of the results of the year.
In Accordance with Accounting Standard 22 Accounting for Taxes on
Income, issued by the Institute of Chartered Accountants of India, the
deferred tax for timing differences between the book and the tax
profits for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
date.
Deferred tax assets arising from temporary timing differences are
recognized to the extent there is a reasonable certainty that the
assets can be realized in the future.
10. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
11. Cash Flow Statement
Cash flows are reported taking the indirect method, wherein net profit
before tax is adjusted for the transactions of non-cash nature and
others or other accruals of past or future receipts and / or payments.
The cash flows from regular revenue generating, investing and financing
activities of the company are segregated.
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