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CORE Education & Technologies Ltd.

BSE: 512199 Sector: Services
NSE: COREEDUTEC ISIN Code: INE247G01024
BSE LIVE 15:22 | 13 Jun Stock Is Not Traded.
NSE LIVE 15:31 | 24 Sep Stock Is Not Traded.
OPEN 1.95
PREVIOUS CLOSE 1.86
VOLUME 5590
52-Week high 3.10
52-Week low 1.67
P/E
Mkt Cap.(Rs cr) 20.28
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.77
Sell Qty 12416.00
OPEN 1.95
CLOSE 1.86
VOLUME 5590
52-Week high 3.10
52-Week low 1.67
P/E
Mkt Cap.(Rs cr) 20.28
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.77
Sell Qty 12416.00

CORE Education & Technologies Ltd. (COREEDUTEC) - Auditors Report

Company auditors report

To The Members of

Core Education and Technologies Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Core Education andTechnologies Limited ("the Company") which comprise the Balance Sheet as at31/03/2015 the Statement of Profit and Loss for the year then ended and a summary ofthe 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at31/03/2015 and its Loss for the year ended as on that date.

Emphasis of Matter

We invite attention to the following notes:

a) Note No. 37 (b) of the accompanying financial statement of the company in respect ofincrease in its overdue trade receivable default in repayment of its dues to lenders anddebenture holders salary arrears and arrears of statutory dues etc. which indicates theexisting of material uncertainty that may cast significant doubt about the Company’sability continue as going concern. As informed to us by management the Empowered Group ofCorporate Debt Restructuring (CDR) Cell has admitted the Company’s application underthe CDR Scheme. The company’s ability to continue as a going concern is dependentinteralia on the successful outcome of its application under CDR scheme and timelyrecovery of the trade receivable. On the basis of its strong expectation of the successfuloutcome of its CDR application and other reason stated in the aforesaid Notes thecompany has prepared the accompanying financial the statements on going concernassumption.

b) Note No. 37(c) of the accompanying financial statements of the Company relating to9the termination order received from Haryana Government for the ICT Project and invocationof bank guarantee of Rs. 295000000. The company has filed a special petition in thehonourable Supreme Court against termination order. The Company believes that it has astrong case on merits. The matter being sub-judice pending the outcome of the legalproceedings no adjustment has been made to the carrying value of receivables of Rs.748319014/- and of the fixed assets of Rs. 1002144968/- at this stage forthis project.

c) Note No 37(d) of the accompanying financial statements of the Company relating totrade receivables which have remained overdue for extended period of time. In the opinionof the management these are fully recoverable. The Company has received year-end balanceconfirmations from these trade receivables and accordingly no provision is deemednecessary by the Company.

Our opinion is not qualified in respect of these matters

d) Debtors of Rs. 2406489894 from subsidiaries are outstanding for more than 2years. These debtors are 50.12% of the total debtors and there is an uncertainty regardingtheir recovery.

e) Since the external liability of the Company are very high and due to increase in itsoverdue trade receivables default in repayment of its dues to lenders and debentureholders and arrears of statutory dues. etc.. The current liabilities of the Company arefar exceeding the current assets of the Company which clearly indicates the existence ofmaterial uncertainty that may cast doubt about the Company’s ability to continue as agoing concern. As informed to us by the management the Corporate Debt Restructuring (CDR)application has also been rejected under the CDR scheme. In view of the exit from CDRthere is an intrinsic risk to the continuing of operation on a going concern basis.

Our opinion is qualified in respect of points d and e above. Report on Other Legal andRegulatory Requirements

This report doesn’t include a statement on the matters specified in paragraph 3and 4 of the Companies (Auditor’s Report) Order 2015 issued by the department ofcompany affairs in terms of sub-section 11 of Section 143 of the companies Act 2013since in Our opinion and according to the information and explanation given to us thesaid 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 bestof 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 theCompany 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 Reportare in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 on31/03/2015 taken on record by the Board of Directors none of the directors isdisqualified 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 inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Aniket Kulkarni & Associates
Firm Registration No. 130521W
(Chartered Accountants)
Aniket Kulkarni
Place: Mumbai Proprietor
Date: 17th August 2015 M. No. 127246

ANNEXURE TO INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in our report to the members of Core Education andTechnologies Limited the Company’) for the year Ended on 31st March 2015. Wereport that:

i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative 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 themanagement in a phased periodical manner.

ii. In respect of its inventories:

The inventories of the Company comprises of software work-in-progress being Intangiblein nature this clause is not applicable to the company

iii. In respect of the loans secured or unsecured granted by the Company tocompanies firms or other parties covered in the register maintained under Section 189 ofthe Companies Act 2013:

a) The Company has not granted any loans for the parties covered under Section 189 ofthe 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 theCompany needs to strengthen the internal control system commensurate with its size and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of our audit we have not observed any continuingfailure to correct major weaknesses in such internal control system.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause (v) of paragraph3 of the CARO 2015 are not applicable to the Company.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government underSection 148(1)(d) of the Companies Act 2013 and are of the opinion that the cost auditis not applicable to the Company.

vii. In respect of statutory dues:

a) According to the records of the Company undisputed statutory dues includingProvident Fund Employees’ State Insurance Income Tax Sales Tax Wealth TaxService Tax duty of Customs Duty of Excise Value Added Tax Cess and other materialstatutory dues have not been regularly deposited with the appropriate authorities. Theundisputed amounts payable in respect of the aforesaid dues were outstanding as at March31st 2015 for a period of more than six months from the date of becoming payable.

b) According to records of company there are pending dues of sales tax which have notbeen 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 18263949 17784327
TDS on Salary 11510105 11499652
TDS on Rent 8494845 8494845
TDS on Contract 9891506 9801370
TDS on Non Resident 8326773 8326773
TDS on Brokerage/ 33694 33694
Commission
TDS on Interest 54640370 47475916
Profession Tax 857250 857250
VAT 32033899 32033899

c) According to the records of the Company there are no amounts that are due to betransferred to the Investor Education and Protection Fund in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made thereunder has beentransferred to such fund within time.

viii. The Company has incurred financial/cash losses in the immediately precedingprevious year and also in this financial year. As a result of it the net worth of theCompany is negative.

ix. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has defaulted in repayment of dues tofinancial institutions banks and debenture holders. Details are as under:-

The delay in repayment of the dues to bank/ financial institutions/ debenture holdersand other parties are as follows:

Sr. No. Particulars Principal Interest Total
1 Banks
More than 180 days - - -
Less than 180 days 96389487 - 96389487
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. No. Particulars Principal Interest Total
1 Banks
More than 180 days 5539379560 721458451 6260838011
Less than 180 days 236443056 264010569 500453625
2 Debenture-holders
More than 180 days 237000000 270971161 507971161
Less than 180 days 369000000 85278216 454278216
3 Lease obligations
More than 180 days - -
Less than 180 days - - -
4 Financial Institution
More than 180 Days 5024756154 498142450 5522898604
Less than 180 Days 124444772 292280074 416724846
Total

x. The Company has given guarantees of Rs. 5643039170 for loans taken by its whollyowned subsidiaries viz. Core Education and Consulting Solutions INC. USA and CoreEducation and Consulting Solutions (UK) Ltd from bank and/or financial institutions. Inour opinion and according to information and explanations given to us the terms andconditions 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 loansoutstanding at the beginning of the year and those raised during the year have beenapplied for the purposes for which they were raised.

xii. In our opinion and according to the information and explanations given to us nofraud by the Company and no material fraud on the Company has been noticed or reportedduring the year.

For Aniket Kulkarni & Associates
Firm Registration No. 130521W
(Chartered Accountants)
Aniket Kulkarni
Place: Mumbai Proprietor
Date: 17th August 2015 M.No. 127246

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