Corporate information
IEC Education Limited ('IEC' or 'the Company'), is a public limited company registered at New Delhi, having
its registered office at E-578, First Floor, Greater Kailash-II, New Delhi-110048 and Corporate Office at E-
216, East of Kailash, New Delhi - 110065. The Shares of the Company are listed at Bombay Stock Exchange.
The Company is inter-alia engaged in providing education services to Colleges and Universities,
Implementation of Skill Development Schemes of various Governments, Franchise Centers etc.
1. Statement of significant accounting policies - Standalone
1.1 Statement of compliance with Ind AS
These financial statements ('financial statements') of the Company have been prepared in accordance with
the Indian Accounting Standards (hereinafter referred to as the 'Ind AS') as notified by Ministry of
Corporate Affairs ('MCA') under section 133 of the Companies Act 2013 read with the Companies (Indian
Accounting Standards) Rules 2015, as amended and other relevant provisions of the Act. The Company has
uniformly applied the accounting policies during the periods presented.
The financial statements for the year ended 31 March 2025 were authorized and approved for issue by the
Board of Directors on 29.05.2025
2. Summary of Significant Accounting Policies
a) Overall consideration
The financial statements have been prepared using the significant accounting policies and
measurement bases summarized below. These were used throughout all periods presented in the
financial statements, except where the Company has applied certain accounting policies and
exemptions upon transition to Ind AS as summarized in note no 32.
Basis of preparation
The financial statements have been prepared on going concern basis in accordance with accounting
principles generally accepted in India. Further, the financial statements have been prepared on
historical cost basis except for certain financial assets and financial liabilities which are measured at
fair values as explained in relevant accounting policies.
b) Current and non-current classification
All assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle Deferred tax assets and liabilities are classified as non-current assets and non-current
liabilities, as the case may be.
c) Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of the financial statements and the
results of operations during the year. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ from these estimates. Any revision
to accounting estimates is recognized in the current and future periods.
d) Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the government. The Company has concluded that it is
the principal in all of its revenue arrangements since it is the primary obligor in all the revenue
arrangements as it has pricing latitude and is also exposed to inventory and credit risks. The specific
recognition criteria described below must also be met before revenue is recognized.
i) Sale of Goods:
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed
to the buyer and are recorded net of sales tax, trade discount and other incentives passed on to the
customer though gross of excise duty.
ii) Training and Education Activity
The revenue in respect of sale of courseware is recognized on delivery of materials. The revenue from
training and education activity is recognized over the period of the course program. Revenue in
respect of other consultancy receipts is recognized upon rendering of the service. All other income is
accounted for on accrual basis.
iii) Interest:
Interest income is recorded on accrual basis using the effective interest rate (EIR) method
iv) Dividends:
Revenue is recognized when the shareholders' right to receive payment is established by the balance
sheet date.
v) Commission:
Commission income is accrued when due, as per the agreed terms.
vi) Export Benefits/Incentives:
Export entitlements under the Duty Entitlement Pass Book (DEPB) Scheme/ Duty Drawback scheme
and Merchandise Exports from India Scheme are recognized in the profit and loss account when the
right to receive credit as per the terms of the scheme is established in respect of exports made.
vii) Management support charges:
Income from management support charges is recognized as per the terms of the agreement based
upon the services completed.
viii) Lease income:
Rental income is recognised on a straight-line basis over the term of the lease, except for
contingent rental income which is recognised when it arises and where scheduled increase in rent
compensates the lessor for expected inflationary costs.
e) Taxes
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date in India, where the
Company operates and generates taxable income. Current income tax relating to items recognised
outside profit or loss is recognised outside profit or loss (either in other comprehensive income or
in equity). Current tax items are recognised in correlation to the underlying transaction either in
OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the liability method on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax
assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences,
and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities.
f) Property, plant and equipment
Recognition and initial measurement
Property plant and equipment are stated at their cost of acquisition. The cost comprises purchase
price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the
asset to its working condition for the intended use. Any trade discount and rebates are deducted in
arriving at the purchase price. Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company. All other repair and maintenance costs are
recognised in statement of profit or loss as incurred.
In case an item of property, plant and equipment is acquired on deferred payment basis, interest
expenses included in deferred payment is recognised as interest expense and not included in cost of
asset.
Subsequent measurement (depreciation and useful lives)
Property, plant and equipment are subsequently measured at cost less accumulated depreciation and
impairment losses. Depreciation on property, plant and equipment is provided on a straight-line basis,
computed on the basis of useful lives (as set out below) prescribed in Schedule II to the Companies
Act, 2013:
The residual values, useful lives and method of depreciation are reviewed at each financial year end
and adjusted prospectively, if appropriate.
De-recognition
An item of property, plant and equipment and any significant part initially recognised is derecognized
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the
asset is derecognised.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all its property,
plant and equipment measured as per the provisions of Previous GAAP and use that carrying value as
the deemed cost of property, plant and equipment.
g) Intangible assets
Recognition and initial measurement
Intangible assets (Softwares) are stated at their cost of acquisition. The cost comprises purchase price,
borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its
working condition for the intended use.
Internally developed intangible assets:
Expenditure on the research phase of projects is recognised as an expense as incurred. Costs that are
directly attributable to a project's development phase are recognised as intangible assets, provided the
Company can demonstrate the following:
• the technical feasibility of completing the intangible asset so that it will be available for use.
• its intention to complete the intangible asset and use or sell it
• its ability to use or sell the intangible asset
• how the intangible asset will generate probable future economic benefits
• the availability of adequate technical, financial and other resources to complete the development
and to use or sell the intangible asset.
• its ability to measure reliably the expenditure attributable to the intangible asset during its
development
Development costs not meeting these criteria for capitalisation are expensed as incurred. Directly
attributable costs include employee costs incurred on development of prototypes along with an
appropriate portion of relevant overheads and borrowing costs.
Subsequent measurement (amortisation)
The cost of capitalised software is amortised over a period in the range of 5 years from the date of its
acquisition. The estimated useful life of an identifiable intangible asset is based on a number of factors
including the effects of obsolescence, demand, competition, and other economic factors (such as the
stability of the industry, and known technological advances), and the level of maintenance
expenditures required to obtain the expected future cash flows from the asset.
h) Investment Properties
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. The Company depreciates building component of investment property over 60
years from the date of original purchase. Furniture & fixture and office equipment, which form part of
investment property are depreciated at useful life.
Investment properties are derecognised either when they have been disposed off or when they are
permanently withdrawn from use and no future economic benefit is expected from their disposal. The
difference between the net disposal proceeds and the carrying amount of the asset is recognised in
statement of profit and loss in the period of derecognition. The residual values, useful lives and
method of depreciation of investment properties are reviewed at each financial year end and adjusted
prospectively, if appropriate. The Company doesn't hold any Investment Property as on date.
i) Investment in Subsidiaries
Investment in subsidiaries is measured initially at costs. Subsequent to initial recognition, investment in
subsidiaries is stated at cost less impairment loss, if any. Investment in subsidiaries is derecognised
when they are sold or transferred. The difference between the net proceeds on sales and the carrying
amount of the asset is recognised in profit or loss in the year of derecognition.
j) Lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Company as a Lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that retains
substantially all the risks and rewards incidental to ownership to the Company is classified as a finance
lease. Operating lease payments are recognised as an expense in the statement of profit and loss on a
straight-line basis over the lease term unless the payments to the lessor are structured to increase in
line with expected general inflation to compensate for the lessor's expected inflationary cost
increases.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognised over the lease
term on the same basis as rental income.
k) Impairment of non-financial assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.
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