Accounting Policies of ACE Edutrend Ltd. Company

Mar 31, 2024

a) Corporate Information

Ace Edutrend Limited was incorporated on 04 October, 1993 registered under the Companies
Act, 1956. The registered office of the company is situated at A-7/6, Jhilmil Industrial Area
Shahdara New Delhi, 110095. The principal place of business is in India.

b) Basis Of Preparation

The financial statements of the Company have been prepared on an accrual basis and under the
historical cost convention except for certain financial instruments (including derivative
instruments) and defined benefit plans which have been measured at fair value. The accounting
policies are consistently applied by the Company to all the period mentioned in the financial
statements.

The financial statements ("Financial Statements”) of the Company have been prepared in
accordance with Indian Accounting Standards ("Ind AS”) notified under the Companies’ (Indian
Accounting Standard) Rules, 2015, as amended from time to time.

c) Use of Estimates and judgments

The preparation of the financial statements requires that the Management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, disclosure of
contingent liabilities as at the date of the financial statements and the reported amounts of
revenue and expenses during the reporting period. The recognition, measurement,
classification or disclosure of an item or information in the financial statements is made relying
on these estimates.

The estimates and judgments used in the preparation of the financial statements are
continuously evaluated by the Company and are based on historical experience and various
other assumptions and factors that the Company believes to be reasonable under the existing
circumstances. Actual results could differ from those estimates

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured. Revenue is measured at the fair value
of the consideration received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government.

The following specific recognition criteria must also be met before revenue is recognized.

i) Training Income - Income is recognized on Accrual Basis.

ii) Other Income - Other Income is accounted for on accrual basis.

e) Depreciation and Amortization

Depreciation is recognized so as to write off the cost of assets (other than freehold land and
properties under construction) less their residual values over their useful lives, using the
Written down Value method. Life of the asset is decided by the management at year end for all
assets.

Amortization is recognized on a Written down Value basis over their estimated useful lives.

The estimated useful life and amortization method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis.
Depreciation on tangible assets is provided as per the provisions of Part B of Schedule II of the
Companies Act, 2013 based on useful life and residual value notified for accounting purposes by
Electricity Regulatory Authorities.

The estimated useful life, residual values and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate accounted for on a prospective
basis.

f) Cash and Cash Equivalents

Cash and Cash Equivalents in Balance Sheet comprises of cash at bank and hand and short term
deposits with original maturity of three months or less, which are subject to insignificant risk of
change in value.

g) Taxation

Income tax comprises current and deferred tax. Income tax expense is recognized in the
statement of profit and loss except to the extent it relates to items directly recognized in equity
or in other comprehensive income.

Current tax is the amount of tax payable based on the taxable profit for the year. Taxable profit
differs from ''profit before tax’ as reported in the statement of profit and loss because of items of
income or expense that are taxable or deductible in other years and items that are never taxable
or deductible. The Company’s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax liabilities and assets are measured using the tax rate
enacted or substantively enacted as on the Balance Sheet date.

h) Cash Flow Statement

Cash flows are reported using the indirect method, as per Ind AS-7, issued by the ICAI whereby
profit for the period is adjusted for the effects of transactions of a non-cash nature, any
deferrals and accruals of past or future operating cash receipts and payments and item of
income and expenses associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the company are segregated.

i) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The
cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying
assets up to the date the asset is ready for its intended use and other incidental expenses
incurred up to that date. Subsequent expenditure relating to fixed assets is capitalized only if
such expenditure results in an increase in the future benefits from such asset beyond its
previously assessed standard of performance. All repair and maintenance are charged to
statement of profit and loss during the reporting period in which they are incurred.

Depreciation on fixed assets have been provided on the basis of Written Down Value over the
useful lives of assets as per useful life prescribed under Schedule II of Companies Act, 2013.
When significant parts of fixed assets are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives.

The residual values, useful lives and methods of depreciation of fixed assets are reviewed at
each financial year end and adjusted prospectively, if appropriate.

Gains or losses arising from de-recognition of an tangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in
the statement of profit and loss when the asset is derecognized.

j) Investments

Investments that are readily realizable and intended to be held for not more than a year are
classified as current investments. All other investments are classified as long-term investments.
Current investments are carried at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution
in value is made to recognize a decline other than temporary in the value of the investments.

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Mar 31, 2014

(a) BASIS OF PREPARATION

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956, (the "Act") and the relevant provisions thereof which continue to be applicable in respect of Section 133 of Companies Act, 2013 in terms of General Circular 15/2013 dated September 13,2013 of the Ministry of Corporate Affairs.

(b) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition less depreciation and impairment loss, if any. Direct costs are capitalized until assets are ready to be put to use.

(c) DEPRECIATION

Depreciation on Fixed Assets is provided under written Down Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-Rata Basis.

(d) REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate realization/ collection.

i. Training Income-income is recognized on Accrual Basis.

ii. Other Income- Other Income is accounted for on accrual basis.

(e) CONTINGENT LIABILITIES

These are disclosed by way of notes on the Balance Sheet. Provisions is made in the Accounts in respect of those liabilities which are likely to materialize after the year end till the finalization of accounts and material effect on the position stated in the Balance Sheet.

(f) INCOME TAX

Taxation is accounted on the basis of the "liability Method" which is generally followed in India. Provision is made for Income Tax based on computation after considering rebates, relief and exemption under the Income Tax Act, 1961.

In accordance with the requirements of Accounting Standard 22 i.e."Accounting for taxes on income" issued by "The Institute of Chartered Accountants of India", the total deferred tax liabilities/asset as on 31.03.2013 have been recognized in the following manner:

PARTICULARS 31-03-2014

DEPRECIATION AS PER COMPANY LAW 26768086.00

DEPRECIATION ALLOWABLE AS PER INCOME TAX ACT 29433409.00

DIFFERENCE 2665323.00

TAX RATE (32.45%) 864764.00

(g) PROVISION, CONTINGENT LIABILITIES & 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 statement.

(h) SEGMENT INFORMATION

The Company is engaged in the business of recreation activities, which constitutes a single business segment and accordingly, disclosures are not required underAS-17, issued by "The Institute of Chartered Accountants of India".

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Mar 31, 2011

(a) BASIS OF PREPARATION

The Financial Statement of ACE EduTrend Ltd. has been prepared under the historical cost convention, on the basis of going concern concept and relevant presentational requirement of the Companies Act, 1956. The Company follows the accrual system of accounting taking cognizance of the guidelines on prudential norms for Income Recognition.

(b) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition less depreciation and impairment loss, if any. Direct costs are capitalized until assets are ready to be put to use.

(c) DEPRECIATION

Depreciation on Fixed Assets are provided under Written Down Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-Rata Basis.

(d) REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate realization / collection. i) Training Income - income is recognized on Accrual Basis. ii) Other Income - Other Income is accounted for on cash basis.

(e) EARNING PER SHARE

The earning per share (basic & diluted) is computed by diving the Net Profit attributable to the Equity Shareholders for the period by the weighted average number of equity shares outstanding during the period.

(f) CONTINGENT LIABILITIES

These are disclosed by way of notes on the Balance Sheet. Provisions is made in the Accounts in respect of those liabilities which are likely to materialize after the year end till the finalization of accounts and material effect on the position stated in the Balance Sheet.

(g) INCOME TAX

Taxation is accounted on the basis of the “liability Method” which is generally followed in India. Provision is made for Income Tax based on computation after considering rebates, relief and exemption under the Income Tax Act, 1961.

In accordance with the Accounting Standards 22 “Accounting for taxes on Income” issued by the Institute of Chartered Accountants of India, Deferred Tax Liability has been calculated in timing differences between the accounting income and the taxable income for the year and quantified using the tax rate enacted or substantively enacted as on the Balance Sheet date.

(h) PROVISION, CONTINGENT LIABILITIES & 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 Liabilties are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

(i) SEGMENT INFORMATION

The Company is engaged in the business of recreation activities, which constitutes a single business segment, and accordingly, disclosures are not required under AS-17, issued by “The Institute of Chartered Accountants of India”.

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Mar 31, 2010

(a) FIXED ASSETS

Fixed Assets are recorded at cost of acquisition. They are stated at historical cost.

(b) DEPRECIATION

Depreciation on fixed assets is provided on straight line method in accordance with Section 205(2)(b) of the Companies Act, 1956, as per the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on leasehold assets is not provided in view of discontinuation of leasehold business. Albums are amortized over the estimated useful life of the assets i.e., 10 years, on pro rata basis.

(c) INVESTMENTS

Investments are stated at cost of acquisition and all the investments are in the name of the company.

(d) REVENUE RECOGNITION

Revenue is recognized when there is reasonable certainty of its ultimate realization/ collection.

i) , Sales - Domestic sales are recognized on dispatch/ on delivery of books/ software/ Music Cassettes/ CDs from sales office.

ii) Films - income will be recognized on its completion/ release and sale of rights thereof.

iii) Other Income - Other Income is accounted for on accrual basis.

(e) CONTINGENT LIABILITIES

These are disclosed by way of notes on the Balance Sheet. Provisions is made in the Accounts in respect of those liabilities which are likely to materialize after the year end till the finalization of accounts and material effect on the position stated in the Balance Sheet.