1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The financial statements are brpared under the historical cost convention, on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in Section 133 of the Companies Act, 2013. The significant accounting policies are as follows: a. Revenue Recognition The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. Income from the student fees are recognized over the period of instruction of course. Non-refundable brmier relationship fees receivable under business association agreements are taken to income as and when due. Dividend income is accounted for as and when declared. b. Fixed assets and debrciation a) Debrciation is provided on the assets on their original costs up to their net residual value estimated at 1% of the original cost, prorata to the period of use on the written down value method, over their estimated useful life as per schedule II to the Companies Act, 2013. b) Intangible assets are amortized as under : i) Goodwill over the period of five years. ii) Trade Mark over the period of ten years. iii) Capital expenditure on office improvement is amortized equally over the lease period. c. Impairment of Assets At each balance sheet date, the Company reviews the carrying value of assets for any possible impairment. An impairment loss is recognized when the carrying amount of asset exceeds its recoverable amount which is the higher of net realizable amount as on the Balance Sheet date and the brsent value of the economic benefit resulting from the future use of the asset. d. Investments Investments are capitalized at cost of acquisition plus direct incidental expenses. Provision for diminution in the value of long term investments is made in accordance with Accounting Standard 13 issued by the Institute of Chartered Accountants of India. e. Employee Benefits The Company provides for gratuity benefits to its employees as per the provisions of The Payment of Gratuity Act, 1972. The gratuity benefit scheme is unfunded and provision for the same is made on actuarial basis. f. Foreign Currency Translation Transactions denominated in foreign currency are recorded at the exchange rate brvailing on the date of transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the statement of profit and loss of the year. Monetary assets and liabilities in foreign currency, which are outstanding as at the year end are translated at the year end at the closing exchange rate and resultant exchange difference are recognized in the statement of profit and loss. Non monetary assets and non-monetary liabilities denomination in foreign currency are measured at historical cost and are translated at exchange rate brvailing at the date of transaction. g. Provisions and Contingent Liabilities Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are disclosed in the notes to accounts. h. Taxation Provision for taxation has been made in accordance with the Income Tax laws brvailing for the relevant assessment years. i. Deferred Tax Deferred tax assets / liabilities resulting from timing differences between book and tax profits is accounted for at the current rate of tax to the extent that the timing differences are expected to crystallize in future. Deferred tax assets in respect of carried forward business losses and unabsorbed debrciation as per Income Tax provisions is recognized only if there is virtual certainty of recoupment of the same out of future taxable income. 3 No impairment provision has been made in the financial statements with regard to the value of investment in EMDI (Overseas) FZ LLC, wholly-owned subsidiary of the Company although the net worth of the subsidiary is completely eroded as the management is expecting the positive trends in the results of the subsidiary on going concern basis. 4 Previous period figures have been regrouped / recast wherever necessary to make them comparable. As Per Our Report of Even Date For Ford, Rhodes, Parks & Co. Chartered Accountants Firm's Registration No. 102860W For and on behalf of the Board of Directors of Greycells Education Limited CIN:L65910MH1983PLC030838 Nowshir Engineer Managing Director DIN:00932396 Abbas Patel Director DIN:00547281 Astha Kariya Partner Membership No: 122491 Dharmesh Parekh Company Secretary Samkeet Patel Chief Financial Officer Place : Mumbai Dated : 13th May, 2015 |