| 1. Consequent to enactment of the Companies Act, 2013 and its
applicability w.e.f. 1st April 2014, the Company has reworked
depreciation on the basis of the useful lives of assets as prescribed
in Part 'C' of schedule II of the Act. As a result depreciation for the
year ended 31st March, 2015 is higher by Rs.83,81,211 due to change in
the useful lives of certain assets.
In case of assets where the remaining useful life as on 1st April 2014
is Nil, the carrying amount of such assets have been adjusted to the
opening balance of Retained Earnings after retaining their residual
value. Accordingly, a sum of Rs. 659,152 has been adjusted against
Opening Reserves.
2. Gratuity and Other Post Employment Benefit Plans
i. Defined Contribution Plan
Company pays Contribution to the various statutory funds viz, Provident
Fund and Employee State Insurance on regular basis and account for the
same as expense in the year of Service Rendered.
The Company Recognized Rs.4,22,332/- ( Previous Year 5,68,574/- ) and
Rs.2,20,457/- ( Previous Year 1,15,802/- ) towards Contribution
Provident Fund & Employee State Insurance respectively in the Profit &
Loss account. The Contributions Payable to these plans by the Company
are at rates specified in the rules of the schemes
ii. Defined Benefit Plan
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
3. Contingent Liabilities
a) Company has to pay part of the Self Assessment Tax of the Financial
Year 2010 - 2011 ,2011 - 2012 and 2012-2013 . Interest on the same is
provided however, penalty under section 221 of the Income Tax Act, 1961
can be levied by the Department of Income Tax which is not so far
provided.
b) The Company has received an Order of Assessment of Tax under Central
Sales Tax Act 1956 See R 9A of the CST (Bombay ) Rules 1957 Accounting
Year 2009-2010 demanding Rs. 6,24,090. The Company is in the process of
making an appeal against the said assessment order before the sales tax
authorities.
c) The Company has received an Order of Assessment of Tax under MVAT
Act 2002 for Assessment Year 2009-2010 demanding Rs. 3,42,81,235 The
Company is in the process of making an appeal against the said
assessment order before the MVAT Authorities.
The Company expects that the matter will be resolve in Company's favour
and no liability is expected.
4. The Company had subsidiary as on 01st April,2014, Birla Edutech
Limited. During the year consequent upon sale of 1,67,35,000 Shares
representing 37.19%, the Birla Edutech Limited ceased as subsidiary.
Pursuant to Section 2 (6) of the Companies Act, 2013, having more than
20% stake in the said Company, Birla Edutech Limited has became
Associate Company.
5. Previous year's figures have been regrouped wherever necessary, to
correspond with the figures of the current year. Amounts and other
disclosures for the preceding year are included as integral part of the
current year financial statements and are to be read in relation to
the amounts and other disclosures relating to the current year. Figures
have been rounded off to the nearest rupee.
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