Significant Accounting Policies (A) Accounting Convention The financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention, on an accrual basis and in accordance with the applicable accounting standards as brscribed under section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act and guidelines issue by the Securities and Exchange Board of India (SEBI). The accounting policies have been consistently applied and are consistent with those used in the brvious year. (B) Use of Estimates The brparation of financial statements in conformity with GAAP requires the management to make 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. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised. (C) Revenue Recognition Revenue is primarily derived from publishing of educational & general books & manufacturing of stationery. Other Income includes Income from Power generation & Pre-School Income. Sales are recognised on transfer of significant risks and rewards in connection with the ownership at the time of dispatch of goods. Sales are recorded net of trade discounts. Dividend Income is recognised when right to receive is established. (D) Fixed Assets Fixed Assets are stated at cost less accumulated debrciation and impairment loss, if any. Cost comprises of the purchase price and all other attributable costs for bringing the asset to its working condition for its intended use. Capital work-in-progress comprises the cost of fixed asset that are not yet ready for their intended use at the reporting date and the same are allocated to the respective fixed assets on the completion of construction. Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment. (E) Debrciation (i) Debrciation on Fixed Assets other than intangible assets is provided on Written Down Value Method on the basis of useful life of the assets brscribed in Schedule II of the Companies Act, 2013. Individual assets acquired for less Rs 10,000 are debrciated entirely in the year of acquisition. (ii) Debrciation on fixed assets added/disposed off during the year has been provided on pro-rata basis. (iii) Lease Premium and related costs are amortised over the lease period. (iv) Cost of registration of Trade Marks and for acquiring Copy Rights are amortised over a period of 10 years in equal instalments. (v) Cost of Intangibles assets other than Trade Mark and Copy Rights are amortised over a period of 36 months. (F) Impairment of Assets The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. Assets are treated as impaired when the carrying cost of assets exceeds their recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which the assets are identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. (G) Earnings Per Share Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period brsented. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods brsented for any share splits and bonus shares issues, including for changes effected prior to the approval of financial statements by the Board of Directors. (H) Foreign Currency Transactions & Financial Instruments (i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year, are restated at the closing rate as applicable. (ii) The gains or losses resulting from such translation of monetary assets and liabilities are recognised in the Statement of Profit and Loss. (iii) The Company has started hedging its risk of foreign currency fluctuations relating to receivables of highly probable forecast transactions pertaining to export sales income by entering into forward contracts. As per the ICAI Announcement, accounting for forward contracts which are entered into for mitigating risk of highly probable forecast transactions, are marked to market on portfolio basis, and the net loss after considering the offsetting effect on the underlying hedge item is charged to the profit and loss account. Net gains are ignored. (iv) Non-monetary items are carried in terms of historical cost denominated in a foreign currency using the exchange rate at the date of the transactions. (v) Exchange difference arising on a monetary item that, in substance, forms part of an enterprise's net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve. (vi) The Foreign exchange difference on translation of long term foreign currency monetary items at rates different from those at which they were reported in brvious financial statements, in so far as it relates to acquisition of debrciable assets are capitalised. (I) Inventories Inventories are valued at lower of cost and estimated net realisable value after providing for obsolescence. a) Cost of Raw materials, packing materials, stores and spares are determined on weighted average basis." b) Cost of Finished goods and Work-In-Process includes cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition. (J) Retirement Benefits (i) Contributions to the provident fund, which is a defined contribution scheme, are charged to the Statement of Profit and Loss in the period in which the liability is incurred. (ii) Provision for gratuity, which is a defined benefit plan, is made on the basis of an actuarial valuation carried out by an independent actuary at the balance sheet date and funded through scheme administered by the Life Insurance Corporation of India ('LIC'). The actuarial valuation is done using the 'Project Unit Credit Method' and sbrad over the period during which the benefit is expected to be derived from employees services. (iii) Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the brsent value of the defined benefit obligation at the balance sheet date based on an actuarial valuation carried out by an independent actuary. (K) Investments Long-term Investments are carried at cost after deducting provision,if any, for other than temporory diminution in the value of investments. Current Investments are carried at the lower of cost and market/fair value of each investment individually. (L) Borrowing Costs The Company capitalises the borrowing costs which are directly attributable to the acquisition or construction of qualifying assets till the said asset is put to use or ready to be put to use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred. (M) Leased Assets Operating Lease : Rentals are expensed with reference to lease terms and other considerations. (N) Provision for Tax Tax expense comprises of current tax and deferred tax. Provision for current tax is determined on the basis of taxable income for the period as per the provisions of Income Tax Act, 1961. Deferred tax is recognized, subject to consideration of prudence, on timing differences between book profits and tax profits using the tax rates and laws that have been enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only when there is a reasonable certainty that the assets will be realized in future. (O) Contingent Liabilities and Provisions A disclosure for a contingent liability is made when there is a possible obligation or brsent obligation that may, but probably will not, require an outflow of resources. Provisions are recognised when there is a brsent obligation as a result of past event, and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on the best estimate required to settle the obligation at the Balance Sheet date. 2. Contingent Liabilities (a) For disputed Income-tax matters Rs. NIL (Previous Year Rs.33 Lac) (b) For disputed Sales tax matters Rs. 2954 Lac (Previous Year Rs.NIL) against which amount paid Rs.84 Lac (c) Against Bond Duty liability amounting to Rs. 326 Lac 251 Lac) for the purchase of excisable inputs without payment of duty under the bonds executed if the export obligation is not fulfilled. (d) In respect of Bank Guarantee given for tender of Rs. 50 Lac (Previous Year Rs. 50 Lac). (e) In respect of Bank Guarantee given for subsidiary Company of Rs. 1000 Lac (Previous Year Rs. 1000 Lac) 3. Financial & Derivative instruments (a) The Company has sold USD 29.54 Mn - equivalent Rs.18635 Lac (Previous Year USD 25.26 Mn- equivalent Rs. 15430 Lac) to cover export receivables, purchased USD NIL equivalent Rs. NIL (Previous Year USD 14 Mn equivalent Rs. 8653 Lac ) to cover loan repayment and purchased USD NIL equivalent Rs. NIL (Previous Year USD 1 Mn equivalent Rs. 319 Lac ) to cover Import Payment. The company has entered into USD-JPY derivative option contracts hedging its exposure on ECB availed in JPY for wind power generation project. Option contracts worth of JPY NIL (Previous Year JPY 36 Mn) as on balance sheet date. 4. Foreign currency translation of Rs. 316 Lac (Previous Year debited Rs. 264 Lac) arising on account of the exchange difference is debited to the Statementof Profi t & Loss. 5. SEGMENT REPORTING As per Accounting Standard (AS) 17 on “Segment Reporting”, segment information has been provided under the Notes of Consolidated Financial Statements. 6. As per Section 135 of the Companies Act 2013, a Corporate Social Responsibility (CSR) Committee has been formed by the company. The areas for CSR activities are Reducing inequalities faced by socially and economically backward groups, Promoting Education & Preventive Health care. The funds were primarily allocated to a corpus and utilized on the activities which are specified in Schedule VII of the Companies Act, 2013. 7. Details of Loan given, Investments made and Guarantee given covered under section 186(4) of the Companies Act, 2013 -Loans given and investments made are shown in their respective heads. Guarantee is given by the Company in respect of loan taken by its subsidiary eSense Learning Pvt. Ltd. for Rs.1000 Lac (Previous Year Rs.1000 Lac) as at 31st March, 2015. 8. Figures of Rs. 50,000 or less have been denoted by # 9. Previous Year Figures have been regrouped / rearranged wherever necessary. As per our report of even date attached hereto For GBCA & Associates (Formerly Ghalla & Bhansali) Chartered Accountants (Firm Registration Number 103142W) sd / - Haresh K. Chheda Partner Membership Number 38262 For & On behalf of the Board sd / Gnanesh D. Gala Managing Director sd / K. S. Vikamsey Chairman sd / Ram Kamat Chief Financial Officer sd / Amit D. Buch Company Secretary Mumbai, 28th May, 2015 |