2 Summary of material accounting policies
2.1 Basis of accounting and preparation of financial
statements
(a) Statement of Compliance with Ind AS
The financial statements have been prepared
to comply in all material respects with the
Indian Accounting Standards (Ind AS) notified
under Section 133 of Companies Act, 2013 ("the
Act") read with Companies (Indian Accounting
Standards) Rules (as amended from time to
time), other relevant provisions of the Act and
rules framed thereunder and guidelines issued
by Securities and Exchange Board of India (SEBI)
and presentation and disclosures as per Division
11 of Schedule III (as amended).
The financial statements have been prepared
on a historical cost convention on accrual basis,
except for the following items that have been
measured at fair value as required by relevant
Ind AS:-
i) Certain financial assets and liabilities
measured at fair value
ii) Defined benefit plans - plan assets measured
at fair value
The financial statements are prepared in Indian
Rupees (T) and all values are rounded off to the
nearest lakhs up to two decimal places, except
when otherwise indicated, as per the requirement
of Schedule III (expect per share data), 0.00 (zero)
denotes amount less than five hundred.
The standalone financial statements are approved
for issue by the Audit Committee and Board of
Directors at its meeting held on 30 May 2025.
Accounting policies have been consistently
applied to all the years presented 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.
All assets and liabilities have been classified as
current or non-current as per the Company's
normal operating cycle and other criteria set
out in the Schedule III to the Act. Based on the
nature of business and the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents, the
Company has ascertained its operating cycle as
12 months for the purpose of current or non¬
current classification of assets and liabilities.
2.2 Cash and cash equivalents
Cash and cash equivalents in the standalone financial
statement comprise cash at banks and on hand and
short-term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.
For the purpose of the statement of cash flows, cash and
cash equivalents consists of cash at bank and on hand and
short-term deposits.
2.3 Property, plant and equipment
An item of Property, Plant and Equipment that qualifies
as an asset is measured on initial recognition at cost.
Following initial recognition, items of Property, Plant
and Equipment are carried out at cost less accumulated
depreciation and accumulated impairment losses,
if any. Cost comprises the purchase price and any
cost attributable to bringing the assets to its working
condition for its intended use.
Subsequent expenditure relating to property, plant
and equipment is capitalized only if such expenditure
results in an increase in the future benefits from
such asset beyond its previously assessed standard
of performance.
In case of centres closed down or relocated, written
down value (WDV) of leasehold improvements /
fixtures as on the date on which the centre is closed
down / relocated are completely written off.
Capital Work-In-Progress are assets that are not ready
for the intended use as at the Balance Sheet date.
Capital advances represents advances given towards
acquisition of property, plant and equipment and are
outstanding as at the Balance Sheet date.
2.4 Intangible assets
Intangible Assets are stated at cost of acquisition net
of recoverable taxes, trade discount and rebates less
accumulated amortisation/depletion and impairment
losses, if any. Such cost includes purchase price,
borrowing costs, and any cost directly attributable
to bringing the asset to its working condition for the
intended use at the reporting date.
The Company's intangible assets comprises assets
with finite useful life which are amortised on a straight¬
line basis over the period of their expected useful life.
The amortization period and the amortization method
for an intangible asset with a finite useful life are
reviewed at least at each financial year end.
2.5 Depreciation / Amortisation on property, plant
and equipment and intangible assets.
Depreciation is calculated on a straight-line basis to
allocate the cost of assets, net of their residual values,
if any, over their estimated useful lives. Components
having value significant to the total cost of the asset
and life different from that of the main asset are
depreciated over its useful life. The useful lives have
been determined based on technical evaluation in
line with useful lives mentioned in Schedule II to the
Act except for air-conditioners, office equipments and
computer hardware where the management believes
the revised useful life of these assets correctly reflect
the periods over which the assets are expected
to be used. Useful life for Air-conditioners, Office
equipments and Computer hardware is 6, 4 and 4
years respectively which are grouped under plant
and machinery (including office equipments) and
computers and e learning equipments.
Residual values, useful life of assets and methods of
depreciation of property, plant and equipment are
reviewed at the end of each financial year with the
effect of any changes in the estimate is accounted for
on a prospective basis.
Amortization of the intangible assets is provided
on pro-rata basis on straight line basis based on
management's technical assessment of useful life of
the assets:
(i) 3 years on non-compete fees and Technology
Aided Teaching (TAT)
(ii) 5 years on Enterprise Resourse Planning Software
(ERP) and other software
(iii) 5 years on Purchase of Trademark
(iv) 3 years for Content
2.6 Impairment of non-financial assets
The Company assesses at each year end whether
there is any objective evidence that a non financial
asset or a group of non financial assets is impaired.
If any such indication exists, the Company estimates
the assets recoverable amount and the amount of
impairment loss.
An impairment loss is calculated as the difference
between an assets carrying amount and recoverable
amount. Losses are recognized in Statement of Profit
and Loss and reflected in an allowance account. When
the Company considers that there are no realistic
prospects of recovery of the asset, the relevant
amounts are written off. If the amount of impairment
loss subsequently decreases and the decrease can
be related objectively to an event occurring after
the impairment was recognised, then the previously
recognised impairment loss is reversed through
Statement of Profit and Loss.
The recoverable amount of an asset or cash-generating
unit (as defined below) is the greater of its value in use
and its fair value less costs to sell. 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 the purpose of impairment testing, assets are
grouped together into the smallest group of assets
that generates cash in flows from continuing use that
are largely independent of the cash inflows of other
assets or groups of assets (the "cash-generating unit").
2.7 Revenue recognition
The Company earns revenue primarily from
providing coaching and educational support
services to customer. The Company has applied
Ind AS 115 "Revenue from contract with customers"
which establishes a comprehensive framework for
determining whether, how much and when revenue
is to be recognised.
- Revenue related to coaching services to students/
government is recognised on straight lined over
the period of course duration, as the services
are rendered.
- Revenue from government projects includes
fees for services rendered and is recognised
over the period of the training and coaching
service duration, after taking into account the
uncertainty involved in condition to be fulfilled
vide the terms of contract.
- Revenue from sale of hardware/content is
recognised upfront at the point in time when the
hardware / content is delivered to the customer
via online/offline delivery, wherever applicable,
while the Company retains neither managerial
involvement nor the effective control.
- Other operating revenue - Management fees are
recognised as per the terms of the contract.
In arrangements of providing both coaching services as
well as hardware / content to students, the Company
has applied the guidance in IND AS 115 "Revenue from
Contract with Customers", by applying the revenue
recognition for each distinct performance obligations.
For allocating the transaction price, the Company has
measured the revenue in respect of each performance
obligations of a contract at its relative standalone
selling price. The price that is regularly charged for
an item when sold separately is the best evidence of
its standalone selling price.
The Company recognises revenue on satisfaction
of a performance obligation which is measured at
the amount of transaction price (net of variable
consideration) allocated to that performance
obligation. The transaction price of goods sold and
services rendered is net of variable consideration on
account of various discounts and schemes offered
by the Company as a part of the contract. Revenue
excludes taxes collected from Customers.
Contract assets are recognised when there is excess
of revenue earned over billings/receipts on contracts.
Contract assets are classified as unbilled receivables
when there is unconditional right to receive cash,
and only passage of time is required, as per
contractual terms.
Advance fees ("contract liability") is recognised when
there is billings/receipts in excess of revenues.
2.8 Other Income
Interest income from financial assets is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on time
basis by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.
Dividend income from investments is recognised
when the Company's right to receive dividend is
established provided it is probable that the economic
benefits associated with the dividend will flow to the
Company as also the amount of dividend income can
be measured reliably.
2.9 Foreign currency transactions and translations
Initial recognition:
Items included in the financial statements are
measured using the currency of the primary economic
environment in which the entity operates ('the
functional currency'). The financial statements are
presented in Indian rupee ', which is the Company's
functional and presentation currency. Foreign
currency transactions are recorded in the functional
currency by applying the exchange rate between the
functional currency and the foreign currency at the
date of the transaction.
Conversion:
Foreign currency monetary items are reported using
the closing exchange 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; 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
such values were determined.
Exchange differences:
Exchange differences arising on the settlement of
monetary items or on reporting the Company's
monetary items at rates different from those at
which they were initially recorded during the year,
or reported in previous financial statements, are
recognised as income or as expenses in the year in
which they occur.
2.10 Employee benefits
Employee benefits include Provident Fund,
Employee State Insurance Scheme, Gratuity and
Compensated Absences.
Defined contribution plan:
The Company's contribution to Provident Fund and
Employee State Insurance are considered as defined
contribution plan and are recognised as an expense
in the Statement of Profit and Loss based on the
amount of contribution required to be made as and
when services are rendered by the employees. The
Company has no further obligations under these
plans beyond its monthly contributions.
Defined benefit plan:
For Defined Benefit Plans in the form of Gratuity -
funded, the cost of providing benefits is determined
using the Projected Unit Credit method, with actuarial
valuations being carried out at each balance sheet
date. Remeasurement, comprising actuarial gains
and losses and the return on plan assets (excluding
net interest) is reflected immediately in the Balance
Sheet with a charge or credit recognised in Other
Comprehensive Income in the period in which
they occur. Remeasurement recognised in Other
Comprehensive Income is reflected immediately in
retained earnings and is not reclassified to Statement
of Profit and Loss. Past service cost is recognised
immediately for both vested and the non-vested
portion. The retirement benefit obligation recognised
in the Balance Sheet represents the present value of
the defined benefit obligation, as reduced by the fair
value of scheme assets. Any asset resulting from this
calculation is limited taking into account the present
value of available refunds and reductions in future
contributions to the schemes.
Short term and Other Long term employee
benefits:
A liability is recognised for benefits accruing to
employees in respect of salaries, annual leave and sick
leave in the period the related service is rendered at the
undiscounted amount of the benefits expected to be
paid in exchange for that service. Liabilities recognised
in respect of short-term employee benefits, employee
benefits are measured at the undiscounted amount
of the benefits expected to be paid in exchange for
the related service. Liabilities recognised in respect
of other long-term employee benefits are measured
at the present value of the estimated future cash
outflows expected to be made by the Company in
respect of services provided by employees up to the
reporting date.
2.11 Leases
The Company assesses at contract inception whether
a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration.
Company as a lessee
The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets."
i) Right-of-use assets
The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments
made at or before the commencement date less
any lease incentives received. Right-of-use assets
are generally depreciated over the shorter of the
asset's useful life and the lease term on a straight¬
line basis. The right-of-use assets are also subject
to impairment. Refer to the material accounting
policies - Impairment of non-financial assets.
ii) Lease liabilities
At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made
over the lease term. The lease payments include
fixed payments (including insubstance fixed
payments) less any lease incentives receivable,
variable lease payments that depend on an index
or a rate, and amounts expected to be paid under
residual value guarantees.
In calculating the present value of lease payments,
the Company uses its incremental borrowing
rate at the lease commencement date. After
the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments (e.g., changes to future payments
resulting from a change in an index or rate used
to determine such lease payments).
iii) Short-term leases and leases oflow-value
assets
The Company applies the short-term lease
recognition exemption to its short-term leases
of rented premises (i.e., those leases that have
a lease term of 12 months or less from the
commencement date and do not contain a
purchase option). It also applies the lease of low-
value assets recognition exemption to leases that
are considered to be low value. Lease payments
on short-term leases and leases of low-value
assets are recognised as expense on a straight¬
line basis over the lease term.
2.12 Earnings per share
Basic Earnings per share is calculated by dividing the
Net profit / loss after tax for the period attributable
to equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted
average number of equity shares outstanding
during the period. The weighted average numbers
of equity shares outstanding during the period and
for all periods presented are adjusted for events of
bonus, granting and vesting employee stock options
to employees. For the purpose of calculating diluted
earnings per share, the net profit / loss for the period
attributable to equity shareholders and the weighted
average number of shares outstanding during the
period are adjusted for the effects of all dilutive
potential equity shares.
2.13 Tax expense
Tax expense represents the sum of the tax currently
payable and deferred tax.
Current tax:
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from 'profit before
tax' as reported in the Statement of Profit and Loss
because of items of income or expense that are
taxable or deductible in other years and items that are
never taxable or deductible. The Company's current
tax is calculated using applicable tax rates that have
been enacted by the end of the reporting period and
the provisions of the Income Tax Act, 1961 and other
tax laws, as applicable.
Deferred tax:
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary
differences to the extent that it is probable that
taxable profits will be available against which those
deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequences
that would follow from the manner in which the
Company expects, at the end of the reporting period,
to recover or settle the carrying amount of its assets
and liabilities.
Current and deferred tax are recognised in Statement
of Profit and Loss, except when they relate to
items that are recognised in Other Comprehensive
Income or directly in equity, in which case, the
current and deferred tax are also recognised
in Other Comprehensive Income or directly in
equity respectively.
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