We have audited the accompanying financial statements of I EC Education
Limited, ("the Company") which comprise the Balance Sheet as at 31
March 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Basis for Qualified Opinion
Attention is invited to:
(I) Note No: 2.8 of financial statements relating to non registration
of title deeds in respect of one building premises, (Net book value as
at year end Rs. 50.74 lacs, Previous year Rs. 51.92 lacs)
(ii) Note No.: 2.22 at serial no. 02 of financial statements relating
to adjustments of entries arising out of confirmation/reconciliation of
the accounts of parties;
(iii) Note No. 2.22 at serial no. 05 of financial statements relating
to non provision of trade receivables and long term loans and advances
considered doubtful amounting to Rs. 499.71 Lacs and Rs. 38.03 lacs
respectively; (Previous year Rs 128.85 Lacs and Rs. 28.03 Lacs
respectively).
(iv) Note no. 2.22 at serial no. 6 of financial statement relating to
not booking the income of Rs. 85 Lacs (Previous year Rs. NIL) as per
agreement with one of the trust in which directors of the company are
interested. Accordingly revenue from operation would have been
increased by Rs 85 Lacs (Previous year Rs. NIL) and profit before tax
for the year and shareholders' fund would have been increased
accordingly (Previous year Rs NIL)
(v) Note No. 2.22 at serial no. 07 of financial statement relating to
short provision of service tax ofRs. 321.64 Lacs .Accordingly other
expenses would have been increased by Rs 321.64 Lacs (Previous year Rs
NIL) and profit before tax for the year and shareholders' fund would
have been reduced accordingly. (Previous year Rs NIL)
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for possible effect of the matter
described in the Basis for Qualified opinion paragraph above, the
aforesaid financial statements give the information required by the Act
in the manners required and give a true and fair view inconformity with
the accounting principles generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order,2015, issued
by the Central Government of India in term of sub-section (11) of
section 143 of the Companies Act,2013, we give in the Annexure a
statement on the matters specified in the paragraphs 3 and 4 of the
Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary
for the purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule II of the Companies (Audit and Auditors)
2014, in our opinion and to our best of the in formation and according
to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note no. 2.22 at
Serial No.Ol to the financial statements;
ii. In our opinion and as per the information and explanation provided
to us, the Company has not entered into any long term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses; and
iii. There has been no delay in transferring amount, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to The Independent Auditor's Report to The Members of IEC
Education Limited
(I) (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. However in some cases, item wise depreciation, location or
quantity were not maintained in the fixed asset register.
(b) The management has not carried out a physical verification of all
the fixed assets but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the Company
and nature of its assets. To the best of our knowledge, no material
discrepancies were noticed in respect of assets verified during the
year
(ii) Having regard to the nature of Company's business, Clause 2 of
CARO 2015 is not applicable.
(iii) As informed to us, the company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act.
Accordingly, the sub-clauses (a) and (b) are not applicable to the
company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of fixed assets and for the sale of goods and services. During
the course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
(v) According to the information and explanations given to us, the
company has not accepted any deposits in terms of directives issued by
the Reserve Bank of India and the provisions of sections 73 to 76 or
any other relevant provisions of the Companies Act and the rules framed
there under. Accordingly, paragraph 3(v) of the Order is not applicable
to the Company.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148 (1) if the Companies Act, 2013 for
any of the services rendered by the Company.
(vii) (a) The company is generally regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income-tax, sales-Lax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, cess and any other statutory dues with the
appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of income tax or sales tax
or wealth tax or service tax or duty of customs or duty of excise or value added
tax or cess were in arrears as at 31st March, 2015 for a period of more than six
months from the date they became payable except income tax of Rs 15.72 Lacs
(Previous year Rs 12.04 Lacs),TDS of RS 25.76
Lacs and Service Tax of Rs6.53 Lacs. (Previous year Rs. 5.91 Lacs and NIL
respectively)
(c) In our opinion and according to the information and explanations
given to us, amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under have been
transferred to such fund within time.
(viii)The company has no accumulated losses at the end of the financial
year under audit. The Company has not incurred cash losses
during the financial year covered by audit and in the immediately
preceding financial year.
(ix) According to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial
institution or bank.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
bankorfinancialinstitutions,thetermsandconditionswhereofareprejudicialto
the interest of the Company.
(xi) According to the information and explanations given to us, no term
loans were obtained during the year under audit.
(xii) Based upon the audit procedures performed and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year of our audit
For NATH&HARI
Chartered Accountants
Firm Reg. No-007403N
(KAILASH HARI)
Place: Delhi Partner
Date : 30th May. 2015 M.No-082285 |