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IEC Education Ltd.

BSE: 531840 Sector: Services
NSE: N.A. ISIN Code: INE172B01017
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VOLUME 100
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Mkt Cap.(Rs cr) 6
Buy Price 0.00
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OPEN 4.20
CLOSE 4.00
VOLUME 100
52-Week high 5.00
52-Week low 2.39
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IEC Education Ltd. (IECEDUCATION) - Auditors Report

Company auditors report

To

THE MEMBERS OF IEC EDUCATION LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of IEC Educationlimited("the Company") which comprise the Balance Sheet as at 31 March 2016the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. 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.

5. 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.

6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Basis for Qualified Opinion

8. Attention is invited to:

I. Note No: 2.8 of financial statements relating to non registration of title deeds inrespect of one building premises (Net books value as at year end Rs. 49.56 LakhsPrevious year Rs. 50.74 Lakhs).

II. Note No: 2.22 at serial no.02 financial statements relating to adjustment ofentries 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 oftrade receivable and long term loans and advance considered doubtful amounting to Rs.427.50 Lakhs and Rs. 15.57 Lakhs respectively; (Previous year Rs 499.71 Lakhs and Rs.38.03 Lakhs respectively).

IV. Note no. 2.22 at serial no. 06 of financial statement relating to not booking theincome of Rs. 6.14 Lakhs (Previous year Rs. 85.00 Lakhs) as per agreement with one of thetrust in which a director of the company is interested. Accordingly revenue from operationwould have been increased by Rs. 6.14 Lakhs (Previous year Rs. 85.00 Lakhs) and profitfor the year and shareholders' fund would have been increased accordingly. (Previous yearRs. 85.00 Lakhs.)

V. Note No. 2.22 at serial no.07 of financial statement relating to short provision ofservice tax of Rs. Nil (Previous year Rs.321.64 Lakhs) Accordingly other expenses wouldhave been increased by Rs. Nil (Previous year Rs.321.64 Lakhs) andprofit for the year andshareholders' fund would have been reduced accordingly.(Previous year Rs.321.64 Lakhs.)

Qualified Opinion

9. In our opinion and to the best of our information and according to the explanationsgiven to us except for possible effect of the matter described in the Basis for Qualifiedopinion paragraph above the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India;

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2016;

b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

10. As required by 'the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in term of subsection (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure B a statement on thematters specified in the paragraphs 3 and 4 of the Order.

11. 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 appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are 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 written representations received from the directors as on 31 March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule II of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of information and according to the explanations given to us :

i. The Company has disclosed the impact if any of pending litigations as on 31stMarch 2016 on its financial position in its financial statements - Refer Note 2.22 atserial no. 01 to the financial statements ;

ii. In our opinion and as per the information and explanation provided to us theCompany has not entered into any long term contracts including derivative contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses; and

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

For NATH & HARI
Chartered Accountants
Firm Reg. No-007403N
KAILASH HARI
Date: 30th May. 2016 Partner
Place: Delhi M.No-082285

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF IEC EDUCATION LIMITED

Referred to in paragraph 11(f) of the Independent Auditor's Report of even date to themembers of IEC EDUCATION LIMITED on the financial statements for the year endedMarch 31 2016

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of IECEDUCATION LIMITED ("the Company") as of March 31 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of the internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditor's Responsibility

3. Our Responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For NATH & HARI
Chartered Accountants
Firm Reg. No-007403N
KAILASH HARI
Place: Delhi Partner
Date: 30th May. 2016 M.No-082285

ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF IEC EDUCATION LIMITED

Referred to in paragraph 10 of the Independent Auditor's Report of even date to themembers of IEC EDUCATION LIMITED on the standalone financial statement as of andfor the year ended March 31 2016

(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. However in some cases item wisedepreciation 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 assetsbut there is a regular programme of verification which in our opinion is reasonable havingregard to the size of the company and nature of its assets. To the best of our knowledgeno material discrepancies were noticed in respect of assets verified during the year

(C) The title deed of immovable properties as disclosed in Note 2.8 on fixed assets tothe financial statements are held in the name of the company except for

Total number of cases whether leasehold/ freehold Gross Block (Rs. In Lakhs.) Net Block (Rs. In Lakhs.) Remarks
1 Leasehold 75.50 50.73 _

(ii) Having regard to the nature of company's business Clause 2 of CARO is notapplicable.

(iii) As informed to us the company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act. Accordingly provisions of clause3(iii) (iii)(a) (III)(b) and (iii)(c) of the said Order are not applicable to theCompany.

(iv) The company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186 of the Act.Therefore the provisions of Clause 3(iv) of the said Order are not applicable to theCompany.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148 (1) if the Companies Act 2013 for any of the services rendered by theCompany.

(vii) According to the information and explanations given to us and the records of thecompany examined by us in our opinion the company is generally regular in depositingundisputed statutory dues including provident fund employees state insurance income-taxsales-tax wealth tax service tax duty of customs duty of excise value added tax cessand any other statutory dues with the appropriate authorities.

According to the information and explanations given to us no undisputed amount payablein respect of income tax or sales tax or wealth tax or service tax or duty of customs orduty of excise or value added tax or cess were in arrears as at 31st March 2016 for aperiod of more than six months from the date they became payable except income tax of Rs15.72 Lakhs (Previous year Rs 15.72 Lakhs) TDS of RS 4.31 Lakhs and Service Tax of Rs6.53 Lakhs . (Previous year Rs. 25.76 Lakhs and Rs. 6.53 respectively)

(viii) According to the information and explanations given to us the company has notdefaulted in repayment of loans or borrowings to any financial institution or bank orGovernment or dues to debenture holders as at the balance sheet date.

(ix) The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofclause 3(ix) of the Order are not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year not have we been informed of any such case by theManagement.

(xi) The Company has paid/provided for managerial remuneration for which requisiteapprovals mandated by the provisions of Section 197 read with Schedules V to the Act.isnot applicable

(xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany.

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany.

(xv) The Company has not entered into any non cash transactions with its directors orpersons connected with him within the meaning of Section 192 of the Act. Accordingly theprovisions of Clause 3(xv) of the Order are not applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For NATH & HARI
Chartered Accountants
Firm Reg. No-007403N
KAILASH HARI
Place: Delhi Partner
Date: 30th May. 2016 M.No-082285