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IEC Education Ltd.

BSE: 531840 Sector: Services
NSE: N.A. ISIN Code: INE172B01017
BSE 00:00 | 15 Apr IEC Education Ltd
NSE 05:30 | 01 Jan IEC Education Ltd
OPEN 1.13
52-Week high 1.13
52-Week low 0.00
Mkt Cap.(Rs cr) 2
Buy Price 1.18
Buy Qty 250.00
Sell Price 1.23
Sell Qty 300.00
OPEN 1.13
CLOSE 1.13
52-Week high 1.13
52-Week low 0.00
Mkt Cap.(Rs cr) 2
Buy Price 1.18
Buy Qty 250.00
Sell Price 1.23
Sell Qty 300.00

IEC Education Ltd. (IECEDUCATION) - Auditors Report

Company auditors report

TO THE MEMBERS OF "IEC Education Limited"

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

I have audited the Standalone Financial Statements of "IEC EducationLimited" which comprise the Balance Sheet as at 31st March 2020 and theStatement of Profit & Loss and Statement of Cash Flows for the year then ended andnotes to the Financial Statements including a summary of significant accounting policiesand other explanatory information.

In my opinion and to the best of our information and according to the explanationsgiven to us except for the possible described in the Basis for Qualified Opinionparagraph the aforesaid standalone financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2020 and loss and its cash flows for the year ended on that date

Basis for Qualified of Opinion

I have conducted the audit in accordance with the Standards on Auditing (SAs) issued byICAI and specified under section 143(10) of the Companies Act 2013. My responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of my report. I am independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and I have fulfilled my other ethical responsibilities in accordance withthese requirements and the Code of Ethics. I believe that the audit evidence I haveobtained is sufficient and appropriate to provide a basis for my opinion basis thefollowing observations which are reported as under.

(i) The company has Loans & Advances with related parties which is a longoutstanding and amounts to Rs. 25.36 Lacs. The management has recovered some amount duringthe year but still a substantial amount is lying as recoverable. (Note 6)

(ii) The company has Sundry Debtor: those are Long Outstanding amounting to Rs. 590.89Lacs. No recovery has been there during the Financial year.(Note 10)

(iii) The bank statements and balance confirmation of Indian overseas bank KotakMahindra Bank and Yes Bank were not made available due to non operations in the banks andaccounts termed inactive as per the representation by Management. However nominal amountswere lying in these banks accounts which do not have significant effect on the financialstatements.

(iv) Attention is invited to note 3 Property Plant and Equipment where fixed assetsschedule is redrafted and as a result Rs. 11.10 lacs has been taken as prior periodadjustment from retained earnings. The depreciation charged in limited review report ofthe company is not correctly determined and the same is now corrected in the annualfinancial statements.

(v) Going Concern

(a) The company does not have any operational revenue and is suffering cash lossessince last 2 years.

(b) The company is not paying its statutory dues.

(c) The major funds of the company are lying with debtors and loans and advances whichare not being recovered.

(d) Investment Rs. 7600000/- in subsidiaries whose net worth is either 100% eroded or50% eroded & are not doing any business their valuation is not substantiated

Hence in view of above issues the appropriateness of the assumption of going concern ofthe management is questionable. However the management has given evidence and agreementsof future contracts and operation endeavor to substantiate the going concern assumptionfor the company.

Key Audit Matters

Except for the matters described in the basis for disclaimer of opinion. I havedetermined that are no Key Audit Matters to communicate in my report.

Other Information Other than the Financial Statements and Auditors Report Thereon

The Company's Board of Directors is responsible for other information. The otherInformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Chairman's Statement andShareholder's Information but does not include the standalone financial statements and myauditor's report thereon.

My Opinion on the Standalone financial statements does not cover the other Informationand I do not express any form of assurance conclusion thereon.

In connection with my audit of the Standalone financial statements my responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or my knowledgeobtained in the course of my audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for Standalone Financial Statements

The Company's Board of directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance cashflows of the Company in accordance with the AS and other accounting principles accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate InternalFinancial Controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the Standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

My responsibility is to conduct an audit of the entity's Standalone financialstatements in accordance with Standards on Auditing and to issue an auditor's report.However because of the matters described in the Basis for Qualified Opinion section of myreport I was not able to obtain sufficient appropriate audit evidence to provide a basisfor an audit opinion on these Standalone financial statements. As part of an audit inaccordance with SAs I exercise professional judgment and maintain professional skepticismthroughout the audit. I also:

? Identify and assess the risks of material misstatement of the Standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for my opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud any involve collusionforgery Intentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under Section143(3) (i) of the Act Iam also responsible for expressing my opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty exitsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If I conclude that a material uncertainty exists I amrequired to draw attention in my auditor's report to the related disclosures in theStandalone financial statements or if such disclosures are inadequate to modify myopinion. My conclusions are based on the audit evidence obtained up to the date of myauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

? Evaluate the overall presentation structure and content of the Standalone financialStatements including the disclosures and whether the Standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. I considerquantitative materiality and qualitative factors in

(i) planning the scope of my audit work and in evaluating the results of my work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

I communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that I identify during my audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

From the matters communicated with those charged with governance I determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. I describe these matters in myauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances I determine that a matter should not becommunicated in my report because the adverse consequences of doing so would reasonable beexpected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements

1) As required by The Companies (Auditors Report) order 2016 ("theorder")issued by Central Government of India in terms of sub section (11) of section143 of the Act I give in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the order.

2) As required by section 143(3) of the Act I report that:

a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.

b) In my opinion proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Statement of Cash Flowdealt with by this Report are in agreement with the relevant books of account.

d) In my opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 except Ind- AS 19 -- Employee benefit disclosurescompliance has not been made in the financial statements.

e) On the basis of written representations received from the directors as on 31 March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2020 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 with reference tofinancial statements of the company and the operating effectiveness of such controlsrefer to my separate Report in "Annexure B". My report expresses anunmodified opinion on the adequacy and operating effectiveness of the company's internalfinancial controls with reference to financial statements.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of the Section 197(16) of the Act as amended:

In my opinion and to the best of my information and according to the explanations givento us the remuneration paid by the company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with rule 11 of the Companies (Audit & Auditors) Rules 2014 as amended inmy opinion and to my best of my information and according to the explanations given to us:

I. The Company has not provided any detail of pending litigation so I am unable tocomment.

II. The company does not have any long-term contracts including derivative contractswhich require provision under any law or accounting Standard for material foreseeablelosses. III. The Company has Share Application and Allotment Money of Rs. 460000required to be disposed off.