NOTE 2 : SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS -
(i) The financial statements have been prepared under the historical cost convention in accordance with the applicable accounting principles in India, Accounting Standard notified under sub-section (2) of Section 2 of the Companies Act 2013 and relevant provisions as adopted consistently of the Companies Act , 2013,
(ii) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.
(iii) The Company generally follows mercantile system of accounting and all income and expenditure items
having a material bearing on the financial statements are recognised on accrual basis._
USE OF ESTIMATES
The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/materialised.
PROPERTY , PLANT & EQUIPMENT
(i) The fixed assets are stated at their cost of acquisition less accumulated depreciation. Depreciation on the fixed assets of the company is provided on the straight line method at the rate specified in Schedule II of the Companies Act, 2013 as amended upto date.
(ii) Depreciation on the assets purchased during the period has been provided on pro-rata basis with reference
_to the date asset is put to use._
INTANGIBLE ASSETS
(ii a.) Intangible Assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite life are reviewed at least at the end of each reporting period.Expenditure incurred on acquisition/development of intangible assets which are not put/ready to use at the reporting date is disclosed under Intangible assets under development.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method , as appropriate , and are treated as changes in accounting estimates.
b. ) The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.Amortisation is calculated over their estimated useful lives using straight-line method.
c. ) Expenses incurred on in-house development of software are shown as "Intangible asset under development" till the time asset is ready to use.Their technical feasibility and ability to generate future economic benefits is established in accordance with the requirements of Ind AS 26, "Intangible Assets”.
d. ) Expenditure incurred for development of in-house Online Learning Software which has been operational
have been shown as "Software Under Intangible assets" and the expenses on software under development is shown under "Intangible Assets Under Development"_
Revenue is recognised upon transfer of control of promised product or services to customer in an amount that reflect the consideration which the company expects to receive in exchange for those product or services for the consideration received or receivable, which is generally the transaction price.
Revenue from courses: Revenue in respect of educational and training programme received from students is recognized in profit and loss over the period of contract in proportion to the stage of completion of the services at the reporting date.The stage of completion is assessed by reference to the curriculum. Fee is recorded at invoice value,net of discounts and taxes,if any. Registraton charges are booked immediatly in the year of receipt.
Revenue from services : Franchise fees is recognised as per the agreed terms of the agreement.
(ii) In Preparing the financial statements of the company , transaction in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the date of transaction. Foreign Exchange losses and gain resulting from the settlement of such transaction are generally recognised in profit or loss in the year in which they arise._
EARNING PER SHARE
The Company reports basic earning per share in accordance with AS-20 for "Earning Per share" issued by the ICAI. Basic earning per share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the year.
LEASES
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating lease (net of any incentives received from the lessor) are charged to the profit and loss on a straight line basis ove the period of the lease unless the payments are structured to increase in line with expected general inflation to cDmpensate for the lessor's expected inflationary cost increases.
EMPLOYEE BENEFITS
a. ) Defined benefit plan : The Company has unfunded defined gratuity plan. The defind benefit obligation is calculated annulally by actuariars through actuarial valuation using the projected unit credit method.
b. ) Defined Contribution plan : Contribution towards provident fund is made to the regulatory authorities,where the company has no further obligations.The company does not carry any further obligations , apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.
Employee's State Insurance Scheme : Contribution towards employees state insurance scheme is made to the regulatory authorities , where the company has no further obligations. The company does not carry any further obligations , apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.
c) Leave encashment : Company does not have any policy related to encashment of leave pending at the end of the year or during the year, hence no provision is made.
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