| We have audited the accompanying financial statements of Core Education
and Technologies Limited ("the Company"), which comprise the
Consolidated Balance Sheet as at 31/03/2015, the Consolidated Statement
of Profit and Loss, for the year then ended, and Consolidated Cash Flow
statement and a summary of the 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 stated
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 and financial performance 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 maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and
detecting 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 adequate internal financial controls, 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
thereunder.
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 the 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 a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31/03/2015, and its Loss for the year ended as on that date.
Report on Other Legal and Regulatory Requirements
This report doesn't include a statement on the matters specified in
paragraph 3 and 4 of the Companies (Auditor's Report) Order, 2015,
issued by the department of company affairs, in terms of sub section 11
of section 143 of the companies Act, 2013 since in Our opinion and
according to the information and explanation given to us, the said
order is not applicable to the company. 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 it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and 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 the written representations received from the
directors as on 31/03/2015 taken on record by the Board of Directors,
none of the directors is disqualified as 31/03/2015 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 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information 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.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our report to the members of Core Education
and Technologies Limited the Company') for the year Ended on 31st
March, 2015. We report that:
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have not been physically
verified by the management in a phased periodical manner.
ii. In respect of its inventories:
The inventories of the Company comprises of software work-in progress,
being Intangible in nature this clause is not applicable to the company
iii. In respect of the loans, secured or unsecured, granted by the
Company to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013:
a) The Company has not granted any loans for the parties covered under
Section 189 of the Companies Act, 2013
b) Since no loans have been granted this clause is not applicable to
the Company.
iv. In our opinion and according to the information and explanations
given to us, the Company needs to strengthen the internal control
system commensurate with its size and the nature of its business for
the purchase of inventory and 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 such internal control
system.
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under Section 148(1)(d) of the
Companies Act, 2013 and are of the opinion that, the cost audit is not
applicable to the Company.
vii. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value
Added Tax, Cess and other material statutory dues have not been
regularly deposited with the appropriate authorities. The undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 31st, 2015 for a period of more than six months from the date of
become.
b) According to records of company, there are pending dues of sales tax
which have not been deposited within the due date of becoming payable.
The tabular format of pending statutory dues is as under:-
Statutory Dues Total
Amount Due for more
than 6 months
TDS on Professional Fees 18,263,949 17,784,327
TDS on Salary 11,510,105 11,499,652
TDS on Rent 8,494,845 8,494,845
TDS on Contract 9,891,506 9,801,370
TDS on Non Resident 8,326,773 8,326,773
TDS on Brokerage/
Commission 33,694 33,694
TDS on Interest 54,640,370 47,475,916
Profession Tax 857,250 857,250
VAT 32,033,899 32,033,899
c) According to the records of the Company, there are no amounts that
are due to be transferred to the Investor Education and Protection Fund
in accordance with the relevant provisions of the Companies Act, 1956
(1 of 1956) and rules made there under has been transferred to such
fund within time.
viii. The Company has incurred financial/cash losses in the immediately
preceding previous year and also in this financial year. As a result of
it the net worth of the Company is negative.
ix. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
defaulted in repayment of dues to financial institutions, banks and
debenture holders. Details are as under:-
The delay in repayment of the dues to bank/ financial institutions/
debenture holders and other parties are as follows:
Sr.
No. Particulars Principal Interest Total
1 Banks
More than 180 days - - -
Less than 180 days 96,389,487 - 96,389,487
2 Debenture Holders
More than 180 days - - -
Less than 180 days - - -
3 Financial
Institution
More than 180 days - - -
Less than 180 days - - -
4 Others
More than 180 days - - -
Less than 180 days - - -
Further the Company has continuing default in respect of following dues
to bank/ financial institutions/ debenture holders and other parties as
at year ended:
Sr. Particulars Principal Interest Total
No.
1 Banks
More than 180 days 5,539,379, 560 721,458,451 6,260,838,011
Less than 180 days 236,443,056 264,010,569 500,453,625
2 Debenture-holders
More than 180 days 237,000,000 270,971,161 507,971,161
Less than 180 days 369,000,000 85,278,216 454,278,216
3 Lease obligations
More than 180 days - -
Less than 180 days - - -
4 Financial
Institution
More than 180
Days 5,024,756,154 498,142,450 5,522,898,604
Less than 180
Days 124,444,772 292,280,074 416,724,846
Total
x. The Company has given guarantees of ' 5,643,039,1 70 for loans
taken by its wholly owned subsidiaries viz. Core Education and
Consulting Solutions INC., USA and Core Education and Consulting
Solutions (UK) Ltd from bank and/or financial institutions. In our
opinion and according to information and explanations given to us, the
terms and conditions though not formalized are not prejudicial to the
interest of the Company.
xi. The Company has not raised new term loans during the year. The
term loans outstanding at the beginning of the year and those raised
during the year have been applied for the purposes for which they were
raised.
xii. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
For Aniket Kulkarni & Associates
Firm Registration No. 130521W
(Chartered Accountants)
Aniket Kulkarni
Place: Mumbai Proprietor
Date: 17th August, 2015 M.No. 127246 |