1 Corporate Information
Zee Learn Limited ("the Company") was incorporated in
State of Maharashtra on 4 January, 2010. The Company is
one of the most diversified premium education companies
which delivers learning solutions and training through its
multiple products viz. Kidzee, Mount Litera Zee Schools,
Mount Litera World Preschool, Zee Institute of Media Arts
(ZIMA), Zee Institute of Creative Arts (ZICA) and E - Learning
Online Education and Testing.
The standalone financial statements of the Company for the
year ended 31 March 2025, were authorised for issue by the
Board of Directors at their meeting held on 15 May 2025.
2 A Basis of preparation and material
accounting policies
a Basis of preparation
i) These standalone financial statements have
been prepared in accordance with the Indian
Accounting Standards (hereinafter referred to
as the 'Ind AS') as notified under Section 133 of
the Companies Act, 2013 ('Act') read with the
Companies (Indian Accounting Standards) Rules,
2015 as and when amended and other relevant
provisions of the Act and rules framed there
under and guidelines issued by Securities and
Exchange Board of India (SEBI).
These standalone financial statements have
been prepared and presented under the
historical cost convention, on the accrual basis
of accounting except for certain financial assets
and liabilities that are measured at fair values at
the end of each reporting period, as stated in the
accounting policies stated out below.
The accounting policies are applied consistently
to all the periods presented in the financial
statements, except where a newly issued
Accounting Standard is initially adopted or
a revision to an existing standard requires a
change in the accounting policy hitherto in use.
ii) Functional and Presentation currency
These standalone financial statements are
presented in Indian Rupees, which is also the
Company's functional currency.
All amounts disclosed in the standalone financial
statements and notes have been rounded off
to the nearest lakhs as per the requirement
of Schedule III (except per share data), unless
otherwise stated. Zero '0.00' denotes amount
less than H 500/-.
iii) Current non-current classification
All assets and liabilities have been classified as
current or non-current as per the company's
normal operating cycle (twelve months) and
other criteria set out in the Schedule III to the Act.
b (i) Property, plant and equipment
Freehold land is carried at cost. Other property,
plant and equipment acquired are measured on
initial recognition at cost. Subsequent to initial
recognition, property, plant and equipment are
stated at cost net of accumulated depreciation
and accumulated impairment losses, if any.
(ii) Right of use of assets
The right-of-use assets are initially recognized at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date
of the lease plus any initial direct costs less
any lease incentives. They are subsequently
measured at cost less accumulated depreciation
and impairment losses.
(iii) Capital work-in-progress
Capital work-in-progress comprises cost of
property, plant and equipment and related
expenses that are not yet ready for their
intended use at the reporting date.
c Investment property
Investment property is land held for capital
appreciation. Investment property is measured
initially at cost including purchase price. It is measured
and carried at cost.
d Intangible assets / Intangible assets under
development
Intangible assets acquired or developed are measured
on initial recognition at cost and stated at cost less
accumulated amortisation and impairment loss, if any.
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.
e Depreciation / amortisation on property, plant
and equipment / right of use assets / intangible
assets
Depreciable amount for property, plant and
equipment / right of use assets / intangible assets is
the cost of an asset, or other amount substituted for
cost, less its estimated residual value.
(i) Depreciation on property, plant and equipment
(except freehold land which is stated at cost)
is provided on straight-line method as per
the useful life prescribed in Schedule II to the
Companies Act, 2013.
(ii) Leasehold Improvements are amortised over
the period of Lease or useful life of asset,
whichever is lower.
(iii) Right-of-use assets are depreciated from the
commencement date on a straight-line basis
over the shorter of the lease term and useful life
of the underlying asset. Right of use assets are
evaluated for recoverability whenever events
or changes in circumstances indicate that their
carrying amounts may not be recoverable.
(iv) Intangible assets are amortised on straight line
basis over their respective individual useful lives
estimated by the management. The useful life of
intangible assets are Three years.
f Impairment of Property, plant and equipment /
intangible assets
The carrying amounts of the Company's property,
plant and equipment and intangible assets are
reviewed at each reporting date to determine whether
there is any indication of impairment. If there are
indicators of impairment, an assessment is made to
determine whether the asset's carrying value exceeds
its recoverable amount. Where it is not possible to
estimate the recoverable amount of an individual
asset, the Company estimates the recoverable amount
of the cash generating unit to which the asset belongs.
An impairment is recognised in standalone statement
of profit and loss whenever the carrying amount
of an asset or its cash generating unit exceeds its
recoverable amount. The recoverable amount is the
higher of net selling price, defined as the fair value
less costs to sell, 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 rates and risks
specific to the asset.
An impairment loss for an individual asset or cash
generating unit is reversed if there has been a change
in estimates used to determine the recoverable
amount since the last impairment loss was recognised
and is only reversed to the extent that the asset's
carrying amount does not exceed the carrying
amount that would have been determined, net of
depreciation or amortisation, if no impairment loss
had been recognised.
g Derecognition of property, plant and equipment /
right of use assets / intangible assets / investment
property
The carrying amount of an item of property, plant and
equipment / right of use assets / intangible assets /
investment property is derecognised on disposal
or when no future economic benefits are expected
from its use or disposal. The gain or loss arising from
the derecognition of an item of property, plant and
equipment / right of use of assets / intangible assets/
investment property is measured as the difference
between the net disposal in proceeds and the
carrying amount of the item and is recognised in the
standalone statement of profit and loss.
h Leases
(i) The Company's lease asset classes primarily
consist of leases for building premises . The
Company assesses whether a contract contains
a lease, at inception of a contract. A contract is,
or contains, a lease if the contract conveys the
right to control the use of an identified asset for
a period of time in exchange for consideration.
To assess whether a contract conveys the right
to control the use of an identified asset, the
Company assesses whether: (i) the contract
involves the use of an identified asset (ii) the
Company has substantially all of the economic
benefits from use of the asset through the
period of the lease and (iii) the Company has the
right to direct the use of the asset.
At the date of commencement of the lease,
the Company recognizes a right-of-use assets
("ROU") and a corresponding lease liability for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve months
or less (short-term leases) and low value leases.
For these short-term and low value leases, the
Company recognizes the lease payments as an
operating expense on a straight-line basis over
the term of the lease.
Certain lease arrangements includes the options
to extend or terminate the lease before the end
of the lease term. ROU assets and lease liabilities
includes these options when it is reasonably
certain that they will be exercised.
The lease liability is initially measured at
amortized cost at the present value of the
future lease payments. The lease payments are
discounted using the interest rate implicit in
the lease or, if not readily determinable, using
the incremental borrowing rates in the country
of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment
to the related right of use asset if the Company
changes its assessment if whether it will exercise
an extension or a termination option.
(ii) Operating lease / Short-term leases and leases
of low-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 of12 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 of office equipment 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.
i Cash and cash equivalents
(i) Cash and cash equivalents in the balance sheet
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.
(ii) For the purpose of the standalone statement of
cash flows, cash and cash equivalents consist of
cash at bank and on hand, short-term deposits
and balances earmarked, as defined as they
are considered an integral part of company's
cash management.
j Inventories
Educational goods and equipment are valued at
lower of cost or estimated net realizable value. Cost
comprises cost of purchase, freight and other expense
incurred in bringing the inventories to their present
location and condition. Costs are taken on weighted
average basis and specific identification method.
k Fair value measurement
The Company has an established control framework
with respect to the measurement of fair values.
The management regularly reviews significant
unobservable inputs and valuation adjustments.
All financial assets and financial liabilities for which
fair value is measured or disclosed in the standalone
financial statements are categorised within the fair
value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:
- Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities;
- Level 2 - Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable, or
- Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.
If the inputs used to measure the fair value of an
asset or a liability fall into different levels of a fair
value hierarchy, then the fair value measurement
is categorized in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement.
The Company recognises transfers between levels of
the fair value hierarchy at the end of the reporting
period during which the change has occurred.
l Financial instruments
Financial instruments is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
Initial recognition and measurement of financial
assets and financial liabilities
Financial assets are recognized when the company
becomes a party to the contractual provisions of
the financial instruments. Financial assets and
financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit and loss) are
added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or
financial liabilities at fair value through profit and
loss are recognised immediately in the standalone
statement of profit and loss.
(A) Financial assets
(1) Subsequent measurement
Financial assets are classified into the following
specified categories: amortised cost, financial
assets 'at Fair value through profit and loss'
(FVTPL), 'Fair value through other comprehensive
income' (FVTOCI). The classification depends on
the Company's business model for managing
the financial assets and the contractual
terms of cash flows.
(i) Debt instrument
(a) Amortised cost
A financial asset is subsequently measured
at amortised cost if it is held within a business
model whose objective is to hold the asset in
order to collect contractual cash flows and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding. This category
generally applies to trade and other receivables.
(b) Fair value through other comprehensive
income (FVTOCI)
A 'debt instrument' is classified as at the FVTOCI
if both of the following criteria are met:
a) The objective of the business model
is achieved both by collecting
contractual cash flows and selling the
financial assets.
b) The asset's contractual cash flows
represent solely payments of
principal and interest.
Debt instruments included within the
FVTOCI category are measured initially as
well as at each reporting date at fair value.
Fair value movements are recognized in
the other comprehensive income (OCI).
However, the Company recognizes interest
income, impairment losses and reversals
and foreign exchange gain or loss in the
standalone statement of profit and loss.
On derecognition of the asset, cumulative
gain or loss previously recognised in
OCI is reclassified from the equity to
standalone statement of profit and loss.
Interest earned whilst holding FVTOCI debt
instrument is reported as interest income
using the EIR method.
(c) Fair value through Profit and Loss (FVTPL)
FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet
the criteria for categorization as at amortized
cost or as FVTOCI, is classified as at FVTPL. In
addition, the Company may elect to designate
a debt instrument, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL.
However, such election is considered only if
doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as
'accounting mismatch').
Debt instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the standalone statement
of profit and loss.
(ii) Equity investments
The Company measures equity investments
other than its subsidiaries at fair value
through profit and loss. Where the Company's
management has elected to present fair value
gains and losses on equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and losses
to standalone statement of profit and loss.
Dividends from such investments are recognised
in standalone statement of profit and loss as
other income when the Company's right to
receive payment is established.
(iii) Investment in subsidiaries
Investment in subsidiaries are carried at cost
less impairment loss in accordance with Ind AS
27 on "Separate Financial Statements".
(2) Derecognition of financial assets
A financial asset is derecognised only when
a) The Company has transferred the rights
to receive cash flows from the asset or the
rights have expired or
b) The Company retains the contractual rights
to receive the cash flows of the financial
asset, but assumes a contractual obligation
to pay the cash flows to one or more
recipients in an arrangement.
Where the entity has transferred an
asset, the Company evaluates whether
it has transferred substantially all risks
and rewards of ownership of the financial
asset. In such cases, the financial asset is
derecognised. Where the entity has not
transferred substantially all risks and
rewards of ownership of the financial asset,
the financial asset is not derecognised.
(3) Impairment of financial assets
In accordance with Ind AS 109, the Company
applies Expected Credit Losses ("ECL") model for
measurement and recognition of impairment
loss on the following financial assets:
• Financial assets that are debt instruments,
and are measured at amortised cost, e.g.
loans and deposits;
• Financial assets that are equity instruments
and are measured at fair value through
other comprehensive income (FVTOCI);
• Trade receivables or any contractual right
to receive cash or another financial asset
that result from transactions that are
within the scope of Ind AS 115.
Expected Credit Losses are measured through a
loss allowance at an amount equal to:
• The 12-months expected credit losses
(expected credit losses that result from
those default events on the financial
instrument that are possible within 12
months after the reporting date), if the
credit risk on a financial instrument has not
increased significantly; or
• Full lifetime expected credit losses (expected
credit losses that result from all possible
default events over the life of the financial
instrument), if the credit risk on a financial
instrument has increased significantly.
In accordance with Ind AS 109 - Financial
Instruments, the Company applies ECL model
for measurement and recognition of impairment
loss on the trade receivables or any contractual
right to receive cash or another financial asset
that result from transactions that are within the
scope of Ind AS 115 - Revenue from Contracts
with Customers.
For this purpose, the Company follows 'simplified
approach' for recognition of impairment loss
allowance on the trade receivable balances and
contract assets. The application of simplified
approach requires expected lifetime losses to
be recognised from initial recognition of the
receivables based on lifetime ECLs at each
reporting date.
(B) Equity Instruments and Financial Liabilities
Financial liabilities and equity instruments issued
by the Company are classified according to the
substance of the contractual arrangements
entered into and the definitions of a financial
liability and an equity instrument.
(i) Equity instruments
An equity instrument is any contract that
evidences a residual interest in the assets of
the Company after deducting all of its liabilities.
Equity instruments which are issued for cash are
recorded at the proceeds received, net of direct
issue costs. Equity instruments which are issued
for consideration other than cash are recorded
at fair value of the equity instrument.
(ii) Financial liabilities
Financial liabilities are recognized when company
becomes party to contractual provisions of the
instrument. The Company classifies all financial
liabilities at amortised cost or fair value through
profit or loss.
1 Subsequent measurement
The measurement of financial liabilities depends
on their classification, as described below:
Financial liabilities measured at amortised
cost
Financial liabilities are subsequently measured
at amortized cost using the EIR method. Gains
and losses are recognized in profit or loss when
the liabilities are derecognized as well as through
the EIR amortization process. Amortized cost is
calculated by taking into account any discount or
premium on acquisition and fee or costs that are
an integral part of the EIR. The EIR amortization
is included in finance costs in the standalone
statement of profit and loss.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of
repurchasing in the near term. Gains or losses
on liabilities held for trading are recognised in
the standalone statement of profit or loss.
2 Derecognition of financial liabilities
A financial liability is de-recognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the de-recognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts
is recognised in the standalone statement of
profit or loss.
(C) Offsetting financial instruments
Financial assets and financial liabilities are offset
and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis to realise the
assets and settle the liabilities simultaneously.
(D) Determination of fair value
Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an ordinary transaction between market
participants at the measurement date.
In determining the fair value of its financial
instruments, the Company uses a variety of
methods and assumptions that are based on
market conditions and risks existing at each
reporting date. The methods used to determine
fair value include discounted cash flow analysis
and available quoted market prices. All
methods of assessing fair value result in general
approximation of value, and such value may
never actually be realized.
m Borrowings and borrowing costs
(i) Borrowings are initially recognised at net of
transaction costs incurred and measured
at amortised cost. Any difference between
the proceeds (net of transaction costs) and
the redemption amount is recognised in the
standalone statement of profit and loss over the
period of the borrowings using the EIR.
(ii) Borrowing costs attributable to the acquisition or
construction of qualifying assets till the time such
assets are ready for intended use are capitalised
as part of cost of the assets. All other borrowing
costs are expensed in the period they occur.
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