You are here » Home » Companies » Company Overview » Navneet Education Ltd

Navneet Education Ltd.

BSE: 508989 Sector: Services
NSE: NAVNETEDUL ISIN Code: INE060A01024
BSE 00:00 | 03 Aug 102.65 -1.55
(-1.49%)
OPEN

104.95

HIGH

105.95

LOW

101.70

NSE 00:00 | 03 Aug 102.90 -1.30
(-1.25%)
OPEN

105.20

HIGH

106.00

LOW

102.15

OPEN 104.95
PREVIOUS CLOSE 104.20
VOLUME 46566
52-Week high 107.35
52-Week low 72.30
P/E 38.02
Mkt Cap.(Rs cr) 2,340
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 104.95
CLOSE 104.20
VOLUME 46566
52-Week high 107.35
52-Week low 72.30
P/E 38.02
Mkt Cap.(Rs cr) 2,340
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Navneet Education Ltd. (NAVNETEDUL) - Auditors Report

Company auditors report

To The Members Of Navneet Education Limited

Report on the Audit of Standalone Ind AS Financial Statements

Opinion

We have audited the standalone Ind AS financial statements of Navneet Education Limited("the Company") which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and notes to thestandalone Ind AS financial statements including a summary of significantaccountingpolicies and other explanatory information (hereinafter referred to as "thestandalone Ind AS financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2020 its profit othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the standalone

Ind AS financial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (‘ICAI') together with the ethical requirements that are relevant to our auditof the standalone Ind AS financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod.

These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matter described below to bethe key audit matter Recoverability of investments and loans advanced to wholly ownedsubsidiaries (refer note 9.3 and 10 to the standalone Ind AS financial statements).

Indiannica Learning Private Limited is a CBSE content publisher and exclusive licenseeof Encyclopaedia Britannica curricular solutions in India and eSense Learning PrivateLimited is involved in the business of e-learning and creation of digital content. Thesesubsidiaries have been incurring losses & hence judgement is required in regard torecoverability of loans & investments into these subsidiaries as at 31st March 2020.Accordingly we determined this to be a key audit matter. Our procedures on themanagement's assessment of these matters included discussion on impairment test carriedout by management including the business outlook including basis of estimates valuationtechnique (fair value report obtained from independent chartered accountant with respectto investment in eSense Learning Private Limited) appropriateness & reasonableness ofassumptions and various other parameters with the management. We did not identify anysignificant exceptions to the management's assessment as regards impairment in thecarrying value of investments in subsidiaries of Rs 14974 Lakhs (net of impairment of Rs373 Lakhs) and loan of Rs 900 Lakhs to subsidiaries is appropriate and no additionalprovision for impairment is necessary.

Information Other than the standalone Ind AS financial statements & Auditor'sReport Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Management

Discussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone Ind AS financial statements and our auditor's report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information obtained prior to thedate of this report we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with

Governance for the standalone Ind AS 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 Ind AS financialstatements that give a true and fair view of the financial position financialperformance changes in equity and flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards‘(Ind AS)' specified under section 133 of the Act read with the Companies (IndianAccounting Standard) Rules 2015 as amended from time to time.

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 adequateinternalfinancialcontrols that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone IndASfinancialstatements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone Ind AS 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 Ind

AS financial statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone

Ind AS financial statements.

As a part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3) (i) ofthe Companies Act 2013 we are also responsible for expressing our 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 reasonablenessof accounting 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 uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone

Ind AS financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind AS financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings any significantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure I a statement on the matters specifiedin 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 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 including Other ComprehensiveIncome the Statement of Changes in Equity and the Statement of Cash Flow dealt with bythis Report are in agreement with the books of account.

d. including In our opinion the aforesaid standalone Ind AS financialstatements comply with the Ind AS specified under section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2020 from being appointed as a director in terms ofsection 164 (2) of the Act.

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 II; Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the

Company's internal financial controls over financial reporting.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid / provided by the Company to its directors for the year ended 31stMarch 2020 is in accordance with the provisions of section 197 read with Schedule V ofthe Act; and

h. 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements Refer note 39 (a) & 10.1 to the standalone IndAS financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For N. A. Shah Associates LLP
Chartered Accountants
Firm Registration Number: 116560W/W100149
sd/-
Sandeep Shah
Partner
Membership No. 37381
UDIN: 20037381AAAABI4140
Place: Mumbai
Date: 17th June 2020

Annexure I To Independent Auditor's Report for the year ended 31st March 2020

[Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date]

To

The Members of

Navneet Education Limited

(i) In respect of fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has formulated a phased program designed of physical verification tocover all the items at-least once over a period of three years. In our opinion thisfrequency of regard physical verification to the size of the Company and the nature of itsassets. In accordance with the said phased program during the year the Company was notof required to carry out the physical verification any of the fixed assets. Consideringthe same we are not required to comment on the material discrepancies under (i) (b) ofparagraph 3 of the Order.

(c) According to the information and explanation given to us and on the basis of ourexamination of the title deeds / purchase agreements / lease deed we report that thetitle deeds of Immovable properties included in the fixed assets are held in the name ofthe Company (including erstwhile name) as at balance sheet date.

(ii) The inventories (other than lying with third parties) have been physicallyverified during the year by the management. In respect of inventories lying with the thirdparties confirmations have been obtained by the Company and material in transit have beenverified with reference to subsequent receipts. In our opinion the frequency of suchverification is reasonable. The the discrepancies noticed on verification physical stocksand the book records were not material and have been properly dealt with in the books ofaccount.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loans to Companies covered in the register maintained under section 189of the Act. There are no firms Liability Partnership or other parties covered under saidregister to whom loans have been granted.

(a) In our opinion and considering the information and explanations given to us termsand conditions for loans are prima facie not prejudicial to the interest of the Company.

(b) The Company has specified schedule for repayment of loan and payment of interest onloan. The repayment of the loan and the payment of interest on loan are regular.

(c) According to the information and explanations given to us there are no overdueamount of principal and interest for more than 90 days.

(iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provision of sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and security as applicable.

(v) In our opinion and according to the explanations given to us the Company has notaccepted any deposits. Therefore question of reporting compliance with directives issuedby the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and rules framed thereunder does not arise. We are informed that noorder relating to the Company has been passed by the Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act relating to windmill division and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot made a detailed examination of records with a view to determine whether they areaccurate or complete.

(vii) In r espect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of records of the Company in respect of amounts deducted / accrued in thebooks of account the Company has been generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income-TaxSales-Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Goods andService Tax Cess and any other statutory dues as applicable to the Company during theyear with the appropriate authorities. There are no undisputed statutory dues payable inrespect to above statutes outstanding as at 31st March 2020 for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there is no disputed Sales-tax Service TaxDuty of Customs Duty of Excise Value Added Tax and Goods and Services Tax as on 31stMarch 2020 which have not been deposited except the following disputed dues which havenot been deposited since the matters are pending with the relevant forum:

Name of statutes Nature of dues Amount (Rs) in Lakhs (net of amount paid under protest) Period to which it relates Forum where dispute is pending
The Income Tax Act 1961 Income Tax 26.08 F.Y. 1999-00 Bombay High Court
3.51 F.Y. 2008-09 Assessing Officer
12.75 F.Y. 2012-13 CIT (Appeals)
Central Sales Tax Act and Sales Tax / 8.11 F.Y. 2004-05 Sales Tax Appellate Tribunal
VAT Act of various states CST / VAT 1084.56 F.Y. 2007-08 Departmental Appellate Authorities
1026.32 F.Y. 2008-09
1.32 F.Y. 2010-11
2.66 F.Y. 2011-12
2.04 F.Y. 2012-13
6.93 F.Y. 2013-14
2.26 F.Y. 2014-15
9.75 F.Y. 2013-14 Assessing Officer
23.46 F.Y. 2016-17
2.81 F.Y. 2018-19 Assessing Officer (the Company is in
process of filing appeal against demand
order from Assessing Officer)
Total 2212.56

(viii) Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the Company has not defaulted in repaymentof loans or borrowings to banks and financial institutions during the year. There are noloans or borrowings from debenture holders / Government.

(ix) In our opinion and according to the information and explanations given to us themoney raised during the year by issue of commercial papers have been applied for thepurposes for which they were obtained. Further the Company did not raise any money duringthe year by way of initial public offer or further public offer and term loans.

(x) During the course of our examination of the books of account and records of theCompany carried out in accordance with generally accepted auditing practices in India andaccording to information and explanations given to us we have neither noticed nor havebeen informed by the management any incidence of fraud by the Company or on the Companyby its officers or employees.

(xi) According to the information and explanations given to us and based on ourexamination of the records the Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) The Company is not a Nidhi Company. Therefore the provisions of clause (xii) ofparagraph 3 of the Order are not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards. Refer note 55 of the standalone Ind AS financial statements.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Therefore the provisions of clause (xiv) ofparagraph 3 of the Order are not applicable to the Company.

(xv) ln our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with directorsor persons connected with the directors. Therefore the provisions of clause (xv) ofparagraph 3 of the Order are not applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-lA of the ReserveBank of lndia Act 1934. Therefore the provisions of the clause (xvi) of the Order arenot applicable to the Company.

For N. A. Shah Associates LLP
Chartered Accountants
Firm Registration Number: 116560W/W100149
sd/-
Sandeep Shah
Partner
Membership No. 37381
UDIN: 20037381AAAABI4140
Place: Mumbai
Date: 17th June 2020

Annexure II To Independent Auditor's Report for the year ended 31st March 2020

[Referred to in paragraph 2 (f) under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date]

Report on the Internal Financial Controls under section 143(3)(i) of the Companies Act2013 ("the Act")

Opinion

We have audited the internal financial controls over financial reporting of NavneetEducation Limited ("the Company") as of 31st March 2020 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon that date.

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial financial reportingandsuchinternalreporting were operating effectively as at 31st March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance

Note on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (‘ICAI').

Responsibilities of Management and Those Charged with Governance for Internal FinancialControls over Financial Reporting

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 internal control statedin the Guidance Note on Audit issued by ICAI. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditor's Responsibility

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 issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 judgement including the assessment of the risks ofmaterial misstatement of the standalone Ind

AS financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of the standalone Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the Company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of the standalone Ind AS financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the standalone Ind AS financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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 the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

For N. A. Shah Associates LLP
Chartered Accountants
Firm Registration Number: 116560W/W100149
sd/-
Sandeep Shah
Partner
Membership No. 37381
UDIN: 20037381AAAABI4140
Place: Mumbai
Date: 17th June 2020

.