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SENSEX NIFTY India | Accounting Policy > Computers - Software - Training > Accounting Policy followed by CORE Education & Technologies - BSE: 512199, NSE: COREEDUTEC

CORE Education & Technologies

BSE: 512199|NSE: COREEDUTEC|ISIN: INE247G01024|SECTOR: Computers - Software - Training
, :
VOLUME 5,590
CORE Education & Technologies is not traded in the last 30 days
Mar 14
Accounting Policy Year : Mar '15
(i) Basis of Preparation of Financial Accounts
 These financial statements have been prepared under the historical cost
 convention, on accrual basis and are in accordance with the generally
 accepted accounting principles (GAAP) in India, the provisions of the
 Companies Act, 2013 and the Accounting Standards as specified in the
 Companies (Accounts) Rules, 2014.
 (ii) Use of Estimates
 The preparation of financial statements requires management to make
 estimates and assumptions that affect the reported balances of assets
 and liabilities and disclosures relating to contingent liabilities as
 at the date of the financial statement and reported amounts of income
 and expenses during the period. Any revision to accounting estimates
 and or difference, if any, between the actual results and estimates is
 recognized in the period in which the results are known.
 (iii) Tangible Fixed Assets
 All fixed assets are stated at cost less accumulated depreciation.
 Cost is inclusive of freight, duties, levies and any directly
 attributable cost of bringing the assets to their present working
 condition.  Capital Work-in-Progress represents cost of fixed assets
 that are not yet ready for their intended use as at the Balance sheet
 (iv) Intangible Assets
 Intellectual Property Rights (IPR) and software Licenses which have
 been separately paid for and put to use are shown under Fixed Assets
 in the Balance Sheet.
 Expenses incurred for software product development are expensed as
 incurred unless technical and commercial feasibility of the project is
 demonstrated, future economic benefits are probable, the Company has an
 intention and ability to complete and use or sell the software and the
 costs can be measured reliably. Such expenses for acquiring
 intellectual property rights & licenses for projects under development
 on balance sheet date are shown under Capital Work-in-Process.
 (v) Depreciation
 Depreciation on fixed assets is provided on the basis of useful lives
 as per Part C of Schedule II to the Companies Act, 2013, except
 depreciation on assets used in BOOT projects which are depreciated
 equally over the period of respective projects, depreciation on foreign
 branch assets has been provided at the rates followed under the
 relevant law of the foreign country which are: Computers 5%; Furniture
 & Fixture 5% and Computer Software are amortized over 5 years.
 (vi) Impairment of Assets
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss, if any is charged to
 the Profit and Loss Account in the year in which an asset is identified
 as impaired. The impairment loss recognized in prior accounting period
 is reversed if there has been a change in the estimate of recoverable
 (vii) Leases
 (a) Lease arrangement, where the risks and rewards incidental to
 ownership of an asset substantially vests with the lesser, are
 recognized as operating leases. Lease payments under operating lease
 are recognized as an expense in the profit & loss account. Operating
 lease rentals are expensed with reference to lease term and other
 (b) The lower of the fair value of the assets and present fair value of
 the minimum lease rentals is capitalized as fixed assets with
 corresponding amount shown as lease liability. The principal component
 in the lease rental is adjusted against the lease liability and the
 interest component is charged to profit and loss account.
 (viii) Foreign Currency Transactions
 a) Transactions denominated in foreign currencies are recorded at the
 rate of exchange prevailing on the date of transactions.
 b) Monetary items denominated in foreign currencies at the year end are
 restated at year end rates.
 c) Non-monetary foreign currency items are carried at cost.
 d) In respect of foreign operations, which are non-integral operations,
 all assets and liabilities, both monetary and non-monetary, are
 translated at closing rate, while all income and expenses are
 translated at average exchange rate for the year. The resulting
 exchange differences are accumulated in the ''Foreign Currency
 Translation Reserve''.
 e) Any income or expense on account of exchange difference either on
 settlement translation or restatement, is recognized in the profit and
 loss account.
 (ix) Investments
 Current investments are carried at the lower of the cost and fair
 market value.
 Long-term investments are stated at cost. Cost includes costs
 incidental to acquisition such as legal costs, investment banking fees
 etc. Provision for diminution in the value of long-term investments is
 made only if such a decline is other than temporary.
 (x) Inventories
 The portion of the Software development contracts which has remained
 unbilled, though partly completed is inventoried as Software
 Development - Work-in-Process.
 The aggregate of ''Software Development'' income and the inventories viz.
 Software Development - Work-in-Process is restricted to the contract
 value or the net realizable value of the work completed or the cost,
 whichever is less. For this purpose, manpower cost of the software
 development team and other directly attributable costs are considered
 for valuation.
 (xi) Revenue Recognition
 Our revenues for software development, both domestic and international,
 are generated primarily on fixed time frame and time and material
 basis. Revenue from software services under fixed-price contracts is
 recognized to the extent of billings due on achievement of milestones
 specified in the agreement. The expenditure incurred on unbilled
 services are inventoried. On time-and-materials contracts, revenue is
 recognized as the related services are rendered. Revenue from the sale
 of user licenses for software applications is recognized on transfer of
 the title in the user license. Revenue from ICT contracts which are on
 BOOT/ BOO basis are recognized equally over the contract period post
 implementation of contract.
 Revenues in case of hardware and software trading are recognized as and
 when these are delivered.
 (xii) Employee Benefits
 a) Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 b) In respect of Indian operations of the Company, post- employment and
 other long-term employee benefits are recognized as an expense in the
 profit and loss account for the year in which the employee has rendered
 services. The expense is recognized at the present value of the amount
 payable determined using actuarial valuation techniques.  Actuarial
 gains and losses in respect of post employment and other long-term
 benefits are charged to the profit and loss account.
 c) In respect of employee stock options, the intrinsic value of the
 options, i.e. the excess of market price of the underlying share on the
 date of the grant over the exercise price of the option is accounted as
 deferred employee compensation cost to be amortized over the vesting
 (xiii) Borrowing Cost
 Borrowing costs that are specifically attributable to the acquisition
 or construction of qualifying asset are capitalized as part of the cost
 of such asset till such time as the asset is ready for its intended
 use. A qualifying asset is an asset that necessarily requires/takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs, i.e. not specifically attributable to the qualifying
 asset are charged to revenue in the period in which those are incurred.
 (xiv) Taxes on Income
 Current Income Tax comprises of taxes on income from operations in
 India and in foreign jurisdictions. Income tax liability in India is
 determined and provided in accordance with the provisions of the Income
 Tax Act, 1961.
 Deferred tax resulting from timing differences between taxable income
 and accounting income is accounted for using the tax rates and laws
 that are enacted or substantively enacted as on the balance sheet date.
 The deferred tax asset is recognized and carried forward only to the
 extent that there is a virtual certainty that the asset will be
 realized in future.
 (xv) Provisions, Contingent Liabilities and Contingent Assets
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 (xvi) Derivative Contracts
 In respect of derivative contracts, premium paid, gain/loss on
 settlement and provision for losses on restatement are recognized along
 with the underlying transactions and charged to Statement of Profit and
 (xvii) Research and Development Costs
 (a) Research costs are expensed as incurred.
 (b) Development costs including costs paid to third parties for
 technical knowhow, content etc. for software/content development are
 expensed as incurred, unless the technical and commercial feasibility
 of the project is demonstrated, future economic benefits are probable,
 the Company has an intention and ability to complete and use or sell
 the software/content and the costs can be measured reliably.  Costs of
 such projects upon completion are classified as Intellectual property
 rights under intangible assets and amortized. Costs of such projects
 under development on balance sheet date are shown under Intangible
 assets under development.
 (c) Research and development expenditure of a capital nature is
 included in the fixed assets.
 (d) The carrying value of development costs is reviewed for impairment
 annually when the asset is not yet in use, and otherwise when events or
 changes in circumstances indicate that the carrying value may not be
Source : Dion Global Solutions Limited
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