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SENSEX NIFTY India | Accounting Policy > Miscellaneous > Accounting Policy followed by Global Education - BSE: 0, NSE: GLOBAL

Global Education

BSE: 0|NSE: GLOBAL|ISIN: INE291W01011|SECTOR: Miscellaneous
Global Education is not listed on BSE
, 16:01
VOLUME 3,000
Mar 17
Accounting Policy Year : Mar '18

1. Significant accounting policies

a) Basis of preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India Le (Indian GAAP) and are in compliance with the Accounting Standards notified under section 133 ofthe Companies Act, 2013 (“the Act”) read with Rule 7 of Companies (Accounts) Rules, 2014 as amended. The Company follows Mercantile System of accounting and recognizes income and expenditure on accrual basis. All assets and liabilities have been classified as current and non-current as per the Companies normal operating cycle and other criteria set out in the Schedule III to the Companies Act 2013. The Company has ascertained its operating cycle as 12 months for the purpose of classification of assets and liabilities into current and non-current.

b) Use of estimates

The preparation of financial statements is in conformity with generally accepted accounting principles which requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as on the date of financial statement and the result of operations during the reporting period. Although these estimates are made on reasonable and prudent basis based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

c) Investments

Long term investments are valued at cost with an appropriate provision for permanent diminution in value, if any. Investment that is readily realizable and is intended to be held for not more than one year is valued at lower of cost or realizable value.

d) Property, plant & equipment

I. Property, plant & equipment

Tangible fixed assets are stated at actual cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

II. Capltal work ln progress

Asset that is still not completed and is in process of development is shown as capital work in progress. Capital work in progress is recognised on the basis of stage of its completion. Cost incurred till date is capitalized and once the asset is ready to use it is shifted to the block of fixed assets with unique identity and depreciation is charged accordingly thereafter.

Borrowing costs directly attributable to acquisition of property, plant & equipment which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

iii. Depreciation and amortization

Depreciation is provided on the written down value basis at the rates determined based on useful lives of assets, where applicable, prescribed under Schedule II to the Act. Depreciation on assets acquired / sold during the year is provided on pro-rata basis with reference to the date of installation / put to use/ disposal.

The carrying cost of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external/internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds their recoverable amounts in accordance with Accounting standard 28 - “ Impairment of Assets” which represent the greater of the net selling price of assets & their ‘value in use’.

Leasehold improvements are amortized over the period of leasehold period.

e) Intangible assets

An intangible asset is recognized, where it is probable that future economic benefits attributable to the asset will flow to the enterprise and where the cost can be reliably ascertained. A prudent basis for recognition of intangible asset is always a key consideration. Intangible asset are stated at cost of acquisition less accumulated amortization and impairment loss, if any. Their technicalfeasibility and ability to generate future economic benefits is established in accordance with the requirements of Accounting Standard 26, “Intangible Assets.”

f) Inventory

Inventory of traded goods are measured at lower of the cost and net realizable value. Inventory is valued on weighted average basis. Obsolete Inventory is written off to statement ofprofit and loss and dead stock of inventory is carried at its recoverable amount.

g) Revenue recognition I. Sale of goods

Revenue is recognised when significant risks and rewards of ownership of the goods have passed to the buyer. Revenue is recognized to the extent that it is probable that economic benefits will flow to the Company and revenue can be reliably ascertained. Discounts and concessions are accounted for separately in a similar manner. Revenue from Product sale are recognized upon delivery or when delivered to the carrier and stated net of returns, discounts/price incentives which are estimated and accounted for based on the terms of contract & excludes applicable indirect taxes. Amount received in advance of sale are recorded as Advances from Students/Unearned Revenue.

ii. Service income includes income from Supply of infrastructure & other services

Revenue from Supply of Infrastructure & Other services to corporate and other organizations is recognized on accrual basis.

Training programs

Revenue from providing Training to Educational as well as Non-Educational Institutions is recognized on accrual basis.

Advertising, broadcasting & marketing services

Revenue from Advertising & Marketing Services provided to various organizations is recognized on accrual basis.

Management services

Revenue from Management Services provided to various organizations is recognized on accrual basis.

Income from other operations

Revenue from other operations is recognized on accrual basis.

Revenue recognition is based on the terms and conditions as per the contracts entered into with the customers. In respect of expired contracts under renewal or where there are no contracts available, revenue is recognized based on the erstwhile contract/ provisionally agreed terms and/or understanding with the customers

iii. Other income

Interest income on fixed deposits is recognized on time proportion basis at applicable interest rates. Dividend income is accounted for when the right to receive it is established.

h) Retirement and other benefits I. Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render services. Bonus and leave encashment expenditure is charged to statement of profit and loss on accrual basis,

ii. Post-employment benefits:

I. Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the company makes specified monthly contributions towards Provident Fund .The company’s contribution is recognized as an expense in the statement of profit and loss during the period in which the employees renders the related service.

ii. Defined Benefit Plans

Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financialyear. Actuarial gains and losses for the defined benefit plan are recognized in full in the period in which they occur in the statement of profit and loss and are not deferred.

i) Foreign currency translations

The transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transactions. Any exchange gains or losses arising on subsequent settlement of such transactions are accounted as income or expenses in the period in which they are settled and arise.

j) Borrowing costs

Borrowing costs relating to acquisition, construction or production of a qualifying asset which takes substantial period of time to get ready for its intended use are added to the cost of such asset to the extent they relate to the period till such asset are ready to use and is in compliance with GAAP

k) Leases

Operating leases: Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals on assets taken on operating lease are recognized as an expense in the statement of profit and loss.

I) Taxes on income L Current tax

Provision for current income tax is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

ii. Deferred tax

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

ii. Minimum Alternate Tax

Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The company recognizes MAT credit available as an asset only to the extent there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created byway of credit to the statement of Profit and Loss and shown as “MAT Credit Entitlement.” The Company reviews the “MAT Credit Entitlement” asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normaltaxduring the sufficient period.

m) Provisions, contingent liabilities and contingent assets

A provision is recognized when the Company has a present obligation as a result of past event, 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 not discounted to its present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company. A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or reliable estimate ofthe amount cannot be made, is also termed as contingent liability. A contingent asset is neither recognized nor disclosed in the financial statements.

n) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

o) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

p) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

q) Impairment of assets

All assets other than inventories, investments and deferred tax asset, are reviewed for impairment, wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is treated as impaired, when the carrying cost of the asset exceeds its recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

r) Segment reporting

In accordance with Accounting Standard-17 - “Segment Reporting”, the company has identified two reportable business segment viz. “Educational Training and Development Activities” and “Educational Business Support Activities”. A Detailed disclosure has been made in these financial statements (Refer Note 40). There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable.

Source : Dion Global Solutions Limited
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