16. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognised if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the obligation.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of
meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an
obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of
outflow of resources is remote, no provision or disclosure is made.
Contingent assets are neither recognized nor disclosed in financial statements.
17. Impairment of Non-Financial Assets:
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or
changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised in the statement of profit or loss for the amount by which the asset's carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest level for which there are separately identifiable cash inflows which are largely dependent of the cash inflows from other
assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the
impairment at the end of each reporting period. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
18. Investment in Subsidiaries, Joint-ventures and Associate:
Investment in equity shares of subsidiaries, joint-venture and associate are recorded at cost and reviewed for impairment at each reporting date.
19. Earnings Per Share:
Basic earnings per shares are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of
equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
B) Terms / rights attached to
I) Equity Shares
The Company has only one class of equity shares having a par value of ? 10 per share. Each holder of equity shares is entitled to one vote per share.
Dividends, if any, is declared and paid in Indian rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the
Annual General Meeting. However, no dividend is / was declared on the equity shares for the year ended March 31, 2025
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Notes:
Special Reserve: Special reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the "RBI Act"). Appropriation from this Reserve Fund
is permitted only for the purposes specified by RBI.
Retained Earnings: Retained Earnings represents the cumulative profits of the Company. This can be utilised in accordance with the provisions of the Companies Act,
2013.
FVTOCI Reserve: It represents the cumulative gains/ (losses) arising on the revaluation of Equity Instruments (Other than investments in Subsidiaries and Associates,
which are carried at cost) measured at fair value through OCI, net of amounts reclassified to Retained Earnings on disposal of such instruments.
General Reserve-General Reserve: General Reserves are created out of profits and kept aside for general purpose and financial strengthening of the company, they don't
have any special purpose to fulfill and can be used for any purpose in future.
32 Segment Reporting:
Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Managing Director/Decision Maker
evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business
segments. Accordingly, information has been presented along with these business segments. The accounting principles used in the
preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments. The
Reportable segments of Company identified by managment are School Income, Hostel Income & Investment.
37 "Employee Benefits" as per Indian Accounting Standard 19:
A. Defined contribution plans
The Company recognised Rs. 1.51 lakhs; (31 March 2024: Rs. 1.02 lakhs) for provident fund contributions in the Statement of profit and loss
for the year ended 31 March 2025. These amounts are included in "Employee benefits expense" (See note 26) under "Contribution to
Provident and other funds" head. The contributions payable to these plans by the Company are at the rates specified in the rules of the
schemes.
B Post-employment Defined Benefit Plan (Gratuity):
The Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service is
entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972.
The following tables sets forth the particulars in respect of the gratuity plan of the Company:
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may very
overtime. Thus, the company is exposed to various risk in providing the above gratuity benefit, most significant of which are as
follows:
Discount Rate Risk : The plan exposes the company to the risk of fall in interest rates. A fall in interest rate will result in an
increase in ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown
in financial statements).
Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase
rate of plan participants in future. Derivation in the rate of increase of salary in future for plan participants from the rate of
increase in salary used to determine the present value of obligation will have a bearing on the plans' liability.
Demographic Risk : The company has used certain mortality and attrition assumptions in valuation of liability. The company
is exposed to the risk of actual experience turning out to be worse compared to the assumption.
Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the payment of Gratuity Act, 1972. There is
a risk of change in regulations requiring higher gratuity payouts.
C Other long term employee benefits (leave salary):
The Company has a leave salary plan where, every employee who has accumulated carry forward leave subject to a maximum
of 300 days and a maximum of 26 days of yearly leave credit shall be entitled to leave salary.
(B) Fair Value Hierarchy
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities. The financial instruments are categorized
into three levels based on the inputs used to arrive at fair value measurements as described below:
Quoted prices in an active market (Level 1): Level 1 hierarchy includes financial instruments measured using quoted prices. This includes
listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using
the closing price as at the reporting period.
Valuation techniques with observable inputs (Level 2): The fair value of financial instruments that are not traded in an active market (for
example over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little
as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.
Valuation techniques with significant unobservable inputs (Level 3): If one or more of the significant inputs is not based on observable
market data, the instrument is included in level 3. This is the case for unquoted preference shares and unquoted equity shares (rights) carried at
There have been no transfers between Level 1 and Level 3 during the period. The fair value of the financial assets and liabilities is included at the
amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The
following methods and assumptions were used to estimate the fair values:
1) The fair values of the quoted equity shares are based on price quotations at the reporting date or the last quoted price as available on the reporting
date.
2) Investment in Equity Instruments of Subsidiary and Associate Companies are carried at cost.
3) The fair values of certain unquoted equity shares have been estimated using Net Asset Value (NAV) as at the reporting date where the valuation
was not practicable to arrive as per Ind AS 113 Fair Value Measurement. For some unquoted equity shares fair values have been arrived as per
methods prescribed under Ind AS 113 Fair Value Measurement.
The valuation of unquoted preference shares and unquoted bonds requires management to make certain assumptions about the model inputs,
including forecast of cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be
reasonably assessed and are used in management's estimate of fair value for these unquoted preference shares and bonds. In case of instruments
having option to convert with the Company, the management has assigned probable likelihood of conversion depending on equity stake in the
target entity, domain of operation and liquidity. Wherever, the probability is low, valuation has been done based on redemption assumptions.
Non-Individual Loans
1.1 Credit Quality of Assets
The Non-individual/corporate book is assessed at the loan type level and the provisioning is done at an account level, which is in
excess of provisioning requirements as per the Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016. In
certain cases, the assessment is done at an account level based on past experience for future cash flows from the project.
The 12 month PD has been applied on stage 1 loans. The PD term structure i.e. Lifetime PD has been applied on the stage 2 loans
according to the repayment schedule for stage 2 loans and PD is considered to be 1 for stage 3 loans.
(C) Financial risk management objectives and policies
The Company's principal financial liabilities, other than derivatives, comprise mainly of borrowings. The main purpose of these financial
liabilities is to finance the Company's operations. The Company's principal financial assets include loans, investments at Fair Value and cash
and cash equivalents.
The Company is exposed to market risk and credit risk. The Company's senior management oversees the management of these risks and is
supported by professional manager who advises on financial risks and assist in preparing the appropriate financial risk governance framework
for the Company. It provides assurance to the Company's senior management that the Company's financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's
policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes can be undertaken. The Board of
Directors reviews and agrees policies for managing each of these risks which are summarized below:
(a) Market risk
Market risk is the risk when the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity price
risk. Financial instruments affected by market risk include borrowings, deposits, derivative financial instruments, FVTPL Investments, etc.
Interest Rate Risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt
obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate
loans and borrowings.
Currency Risk:
Currency risk is the risk that the future cash flows of a financial instrument will change because of changes in currency rates. During the
period under review, the company did not fact currency risk.
(b) Liquidity Risk
Liquidity risk is the risk that the Company does not have sufficient financial resources to meet its obligations as they fall due, or will have to do so
at an excessive cost. This risk arises from mismatches in the timing of cash flows which is inherent in all finance driven organisations and can be
affected by a range of Company-specific and market-wide events.
(c) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk
encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Pledge obligation risk
is the risk that may occur in case of default on part of Pledgee company which may immediately amount to loss of assets of Company. The
Company has adopted a policy of only dealing with creditworthy counterparties to mitigating the risk of financial loss from defaults. Company's
credit risk arises principally from loans and cash & cash equivalents.
42 Capital Management
The Company's objectives when managing capital are to :
1. safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for
other stakeholders, and
2. Maintain an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure, the Company
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, reduce debt or sell assets.
B While disclosing the aggregate amount of transaction price yet to be recognised as revenue towards unsatisfied or partially satisfied
performance obligations, along with the broad time band for the expected time to recognise those revenues, the Company has applied
the practical expedient in Ind AS 115. Accordingly, the Company has not disclosed the aggregate transaction price allocated to
unsatisfied or partially satisfied performance obligations which pertain to contracts where revenue recognised corresponds to the value
transferred to customer typically involving time based and event based contracts.
The aggregate value of transaction price allocated to unsatisfied or partially satisfied performance obligations is Rs.2303.72 Lakhs (
Previous Year Rs.2773.95) which is expected to be recognised as revenue or refunded in due course.
The business of the Company was significantly impacted by the continuous delay in re-opening of schools amid Covid-19 lockdown
restrictions. However, two entry level grades i.e., Play Group and Nursery were not possible to function smoothly on online platforms.
Therefore, it was very challenging to collect fees for these two grades. Besides, many parents are asking for refund of the paid fees for
the nursery and upper grades. Amount of Rs.2303.72 Lakhs continues to be shown as liability to be refunded to students.
44 Exceptional Items:
a) In the current year, the Company entered into a Business Transfer Agreement ("BTA") with Witty Education Private Limited,
executed on August 31, 2023, and effective from January 1, 2024. The agreement pertains to the sale of the Company's traditional
preschool business and ancillary services as a going concern, through a slump sale for a total consideration of ^8,994 lakhs. The
transaction was conducted as an all-cash deal, in accordance with the terms and conditions outlined in the BTA. The Shareholder of
Company Approved sale of business in annual general meeting dated 30th September, 2023.
As per the terms of the BTA, the assets and liabilities related to the preschool business were transferred to Witty Education Private
Limited. The Company recorded a net gain of ^6,303.79 lakhs from the transaction, which has been presented as an exceptional item in
the Statement of Profit and Loss for the year ended March 31, 2024. The details of this exceptional item are as follows:
49 Additional Regulatory Information
a The Company has not made any loans or advances in the nature of loans to Promoters, Directors, KMP's and the related parties
which are outstanding as at the end of the current year and previous year except for the ones which are disclosed in related party
transactions (Refer Note 33).
b All the charges or satisfaction of which is required to be registered with Registrar of Companies(ROC) have been duly registered
within the statutory time limit provided under the provisions of Companies Act 2013 and rules made thereunder.
c The company has complied with the number of layers of companies prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of Layers) Rules, 2017.
d All the borrowings from banks and financial institutions have been used for the specific purposes for which they have been
obtained.
e Utilisation of Borrowed funds and Share Premium
a) The company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities
(Intermediaries) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b) The company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the
understanding , whether recorded in writing or otherwise, that the company shall directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
f The Company has not taken any working capital facilities from banks on the basis of security of current assets.
g There were no transactions which have not been recorded in the books of account, have been surrendered or disclosed as income in
the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.
h None of the banks, financial institutions or other lenders from whom the company has borrowed funds has declared the company as
a wilful defaulter at any time during the current year or in previous year.
i No proceedings have been initiated or pending against the Company for holding any benami property under The Prohibition of
Benami Property Transactions Act, 1988 and the rules made thereunder.
j Money raised by way of borrowing from bank and fnancial institution have been applied by the Company for the purposes for which
they were raised, other than temporary deployment pending application of proceeds.
k The Company does not have any transactions with the companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of the Companies Act, 1956
l No Scheme of Arrangement concerning the Company has been approved by any Competent Authority during the financial year.
m The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
50 Audit Trail:
The accounting software used by the Company, to maintain its Books of account have a feature of recording audit trail (edit log)
facility and the same has been operated throughout the year for all transactions recorded in the software. The Company has an
established process of regularly identifying shortcomings, if any, and updating technological advancements and features including
audit trail.
51 The Company is registered With the Reserve Bank of India (RBI) as a Non-Deposit taking Non-Banking Financial Company (NBFC-ND).
The Company had submitted an application in earlter years to the RBI for surrender of its NBFC-ND registration and was awaiting a
response from the RBI. However, no update was received from the RBI, and the Company subsequently withdrew the said
application. Pursuant to the same the company has prepared and presented financial statements under Schedule III Division III as
applicable to NBFCs. Figures of previous periods have been regrouped, reclassified accordingly.
As per our report of even date
attached.
For Chhajed & Doshi For and on behalf of the Board of Directors
Chartered Accountants VJTF Eduservices Limited
Firm Registration : 101794W
M. P. Chhajed Dr. Vinay Jain Dr. Raina Jain
Partner Director Director
Membership No. 049357 DIN No. 00235276 DIN No. 01142103
Divya Nandu Gite
Place: Mumbai Company Secretary Chief Financial Officer
May 30, 2025 ACS: 44179
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