Home  »  Company  »  Career Point  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Career Point Ltd.

Mar 31, 2016

SEGMENT INFORMATION

The Company is in education field has identified two reportable segments viz. Informal and Formal Education. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

c) As per Accounting Standard on Segment Reporting (AS-17), the Company has reported segment information on consolidated basis including businesses conducted through its subsidiaries.

(iv) Disclosure of related parties/ related party transactions:

(a) List of related parties over which control exists:

Career Point Edutech Limited Wholly owned Subsidiary

Career Point Infra Limited Wholly owned Subsidiary

Srajan Agritech Private Limited Wholly owned Subsidiary

Srajan Capital Limited Wholly owned Subsidiary

Coupler Enterprises Private Limited Wholly owned Subsidiary

Career Point Institute of Skill Development Pvt. Ltd. Wholly owned Subsidiary

Gyan Eduventure Private Limited Subsidiary

Career Point Accessories Private Limited Subsidiary

StudyBoard Education Pvt. Ltd. Joint Venturer

(b) Name of the related parties with whom transactions were carried out during the period and description of relationship:

- Subsidiary:

Career Point Edutech Limited

Career Point Infra Limited

Gyan Eduventure Private Limited

Career Point Accessories Private Limited

Srajan Agritech Private Limited

Srajan Capital Limited

Coupler Enterprises Private Limited

Career Point Institute of Skill Development Pvt. Ltd.

- Associates companies:

Imperial Infin Pvt Ltd -Joint Venturer:

StudyBoard Education Pvt. Ltd.

- Key Management Personnel:

Mr. Pramod Maheshwari (Chairman & Managing Director)

Mr. Om Prakash Maheshwari (CFO & Whole time Director)

Mr. Nawal Kishore Maheshwari (Whole time Director)

- Relative of Key Management Personnel:

Smt. Shilpa Maheshwari (Wife of Director)

Smt. Neelima Maheshwari (Wife of Director)

- Enterprises under same Management:

Diamond Business Solutions Private Ltd.

Om Prakash Maheshwari (HUF)

Wellwin Technosoft Private Ltd.

Gopi Bai Foundation Career Point University, Kota Career Point University, Hamirpur

(v) A CSR Committee is constituted and policy framed and uploaded on the website of the Company, however the company is yet to start expending on CSR Activity.

(vi) Fees received by the company''s franchises are deposited in the franchise wise bank account of the company. However, company is recording in its books of account only the amount which company is entitled to receive as royalty as per the agreement entered into with the franchise.

(vii) Basic and Diluted Earnings per share ["EPS"] computed in accordance with Accounting Standard (AS) 20 "Earnings Per Share"

(ix) There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2016.

(x) Figures for the previous year have been regrouped/reclassified wherever necessary.

GENERAL INFORMATION:

Career Point Limited is engaged in providing Non Formal and Formal Education Service which inter alia include Education Consultancy, Management Services and Tutorial Services.

27 SIGNIFICANT ACCOUNTING POLICIES:

(i) Basis of Accounting

The company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP) and in compliance with the Accounting Standards notified under section 133 and other requirements of the Companies Act, 2013.

The Preparation of financial statements in conformity with GAAP requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements. Examples of such estimates include the useful life of tangible and intangible fixed assets, provision for doubtful debts/ advances, future obligations in respect of retirement benefit plans etc. Actual results could differ from these estimates.

(ii) Revenue Recognition

Revenue is recognized only when it can be reasonably measured and there exists reasonable certainty of its recovery. Minimum revenue commitment from franchisee is recognized at the time of receipt. Fees/income collected in advance for the period subsequent to the accounting period is shown as current liability.

Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend: Dividend income is recognized when the right to receive dividend is established.

Gain from investment in Mutual Funds (FMPs) is recognized at the date of Maturity.

(iii) Employee Benefits

a. Defined Contribution plan

Company''s contributions paid/ payable during the year to Provident Fund and Employee Pension Scheme are recognized in the Profit and Loss Account.

b. Defined Benefit Plan

Company''s liabilities towards gratuity , are determined using the projected unit credit method which considers each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Actuarial gain and losses are recognized immediately in the statement of Profit and Loss Account as income or expenses. Obligation measured at the present value of estimated future cash flows using discounted rate that is determined by reference to market yields at the balance sheet date on government bonds where the currency and terms of the Government are consistent with currency and estimated terms of the defined benefit obligation.

The Company does not provide carry forward and encashment of leave.

(iv) Property, Plant and Equipment (Fixed Assets)

Gross carrying amount of an asset is its cost or other amount substituted for the cost in the books of accounts, without making any deduction for accumulated depreciation and accumulated impairment losses. Fixed Assets are stated at cost of recognition/ installation less accumulated depreciation and include directly attributable cost including installation and freight charges for bringing the assets to working condition for intended use.

Cost is the amount of cash or cash equivalents paid or the fair value of the other considerations given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognized in accordance with the specific requirements of other Accounting Standards.

Carrying amount is the amount at which an asset is recognized after deducting any accumulated depreciation and accumulated depreciation losses.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

" Useful life is:(a) the period over which an asset is expected to be available for use by an enterprise; or(b) the number of production or similar units expected to be obtained from the asset by an enterprise."

" The cost of an item of property, plant and equipment is recognized as an asset if, and only if:(a) it is probable that future economic benefits associated with the item will flow to the Company; and(b) the cost of the item can be measured reliably."

Tangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as "capital work-in-progress".

(v) Depreciation

Leasehold land is amortized over the period of lease. Depreciation on Fixed assets is provided from the date the asset is ready for commercial use on a pro-rata basis as per useful life prescribed in Schedule II of the Companies Act, 2013.

Depreciation for additions to/deletions from assets is calculated pro-rata from/to the date of addition/deletion.

(vi) Intangible Assets and Amortization

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute of Chartered Accountants of India, adopted by the company from the Financial Year 2007-08 and are amortized as follows: -Cost of Lease hold land is amortized over the period of lease.

- Software - Amortized over a period of 3 years

(vii) Impairment of Assets

(a) At each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

(I) The provision for impairment loss required, if any, or

(II) The reversal required of impairment loss recognized in previous periods, if any.

(b) An impairment loss is recognized whenever the carrying amount of an asset or its cash generating units exceed its recoverable amount.

Recoverable amount is determined:

(I) in the case of an individual asset, at higher of the net selling price or value in use.

(II) in the case of cash generating unit, at higher of the cash generating unit''s net selling price or value in use.

(viii) Investments

(a) Long term investments are carried at cost after providing for any diminution in value, if such diminution is of permanent nature.

(b) Current investments that are readily realizable and intended to be held for not more than a year are carried at lower of cost or market value. The determination of carrying costs of such investments is done on the basis of specific identification.

(ix) Inventories

Inventories are valued at lower of cost or net estimated realizable value, mainly comprises of publication and printed material. The cost of publication and printed materials have been computed on the basis of cost of materials, labour, cost of conversion and other costs incurred for bringing the inventories to their present location and condition. Cost is determined on FIFO method.

(x) Miscellaneous Expenditure

Preliminary expenses incurred on formation of the company and expenses incurred for increase in authorized capital are amortized over a period of 5 years.

(xi) Foreign Currency Transactions

(a) The reporting currency of the company is Indian Rupee.

(b) Foreign currency transactions are recorded on initial recognition in reporting currency, using the exchange rate at the date of transaction. At each Balance sheet date, foreign currency monetary items are reported using the closing rate.

The exchange differences arising on settlement of monetary items are recognized as income or expenses in the year in which they arise.

(xii) Taxes on Income

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

(xiii) Provisions, Contingent Liabilities and Contingent Assets

(a) Provisions are recognized for liabilities that can be measured only by using substantial degree of estimation, if

(I) the company has a present obligation as a result of past event;

(II) a probable outflow of resources is expected to settle the obligation;

(III) the amount of the obligation can be reliably estimated.

(b) Contingent liability is disclosed in the case of :

(I) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation;

(II) a present obligation when no reliable estimate is possible; and

(III) a possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent Assets are neither recognized, nor disclosed.

(c) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.


Mar 31, 2015

1. CPL Employee Stock Option Plan 2013:

The Company has granted 5,000 employee stock options under the scheme. Each option so granted shall carry a right to subscribe one equity share of the company upon vesting and payment of exercise price of Rs 100 per option. The said Stock Option granted shall be vested over a period of 1 year from the date of grant and entitled to exercise the options up to a period of 4 years from the date of vesting.

2. Sub Note:

(a) Overdraft facility of ' 90/- Lacs against the security of Fixed Deposit Receipts of Rs.100/- Lacs.

(b) Secured On Demand Credit Facility of ' 985 Lacs @11.25% p.a. (PY 10.60% p.a.) from Barclays Bank, against the security of Mutual Funds of ' 1,190 Lacs, repayable on demand, however no charge is registered with Registrar of Companies. The overdraft facility has been renewed in Sep-14 with interest rate reset @ 10.35% p.a.

Amount payable to Micro, Small & Medium Enterprises (MSM ED Act)

I) On the basis of absence of a data-base identifying creditors as Micro, Small & Medium Enterprises, the management is of the opinion that there are no parties which can be classified as Micro, Small & Medium Enterprises to whom the company owes any sum. The Auditors have accepted the representations of the management in this matter.

ii) The company will identify the suppliers who are covered under "The Micro, Small & Medium Enterprises Development Act, 2006" on receiving the information from them, after which necessary information as required under the said Act will be complied with.

3. Pledged/marked a lien as security against on demand credit facility to the company.

4. Pledged/marked a lien as security against on demand credit facility to its wholly owned subsidiary Career Point Infra Limited. The Management confirmed that the facility used for its principal business activity.

* Shown in the previous year as Current Investment, converted into Non Current Investment due to the change in terms.

(a) Classification of Inventories as required by AS-2 "Valuation of Inventories"

Raw Material and Finished Goods contains Publication Material (Paper), and Other Items and Printed Material (Books) respectively. Inventory consists of various types of books and other items, therefore item wise break-up of the same is not given.

5 . The Company formed a subsidiary along with an entrepreneur , to expand its base and capacity to a new city and has outstanding loan amount to Rs. 244.82 Lacs (P.Y. Rs.86.86 Lacs) @ 9%P.A. for its working capital requirement. The Management of the Company confirmed that the said loan is necessary for its business purpose, and is in compliance of clause (b) of sub section (1) of section 185 of the Companies Act, 2013.

6. The company has outstanding loans amounting to Rs. 1645.95 Lacs (P.Y. 1549.59) Lacs @9% p.a. to its wholly owned subsidiaries, repayable in 3 years/on demand and part of the loan was further loaned to its group companies/associates. The Management confirmed that such loans and further loans have been utilised by the group companies for their principal business activities as defined in Rules of section 185 of the Companies Act, 2013.

7. The Company has outstanding unsecured loan amounting to Rs.760.29 Lacs to a Charitable Institution under the same management.

8. The Company has given loan to its wholly owned subsidiary (A NBFC) which in turn has paid to a charitable trust under the same management to repay its liabilities to the company.

9. Amount Advanced to related party Amount in Rs.

10. Loans to others include Rs. 1071.32 Lacs (Previous Year Rs. 789.65 Lacs), given to various parties at the interest rates varying from 12% to 15% (Previous year @12% to 15.60%)

11. CONTINGENT LIABILITIES

Amount in Rs.

Particulars As at 31.03.2015 As at 31.03.2014

Service tax liability 69,389,525 57,500,587

Claims against the Company 3,280,200 4,920,448 not acknowledged as debts

Value added tax liability 56,580,597 55,604,459

IoTAL 129,250,322 118,025,494

12. Provision for Bonus has been made for Rs. 813,709 /-.(Previous year Rs.520,936/-) for eligible employees for the year ended on March 31,2015.

13. During the period, the company has paid remuneration to the following related parties defined as per AS-18 "Related Party Disclosures" :-

14. Payments to Auditors (excluding service tax)

(b) During the year the company has carried out the following transactions with related parties defined as per AS-18 "Related Party Disclosures" :-

15. Additional Information to the Financial Statements

(I) Estimated amount of contracts remaining to be executed on capital account (net of advances): Rs. 2,41,56,125/- (Previous Year Rs.273,62,489/-).

(ii) The Company has classified the various benefits provided to employees as follows:

(a) Defined Contribution Plans - Provident Fund

(b) State Plans - Employer's Contribution to Employees Pension Scheme, 1995.

During the year the Company has recognized Rs. 5,30,778/- (Previous year- Rs.3,18,986/-) as employer's contribution to Provident Fund and Rs.10,22,088/- (Previous Year- ' 5,89,274/-) as employer's contribution to Employees Pension Scheme, 1995 in the Profit and Loss Account.

The company is depositing P.F contribution only for eligible employees within statutory limits. The employees whose income is above the statutory limits have opted not to subscribe and accordingly, the company is not required to make the contribution.

(c) Defined Benefit Plans:

I) Gratuity

II) Leave Encashment

In accordance with Accounting Standard-15 (revised 2005) actuarial valuation was carried out as at 31st March, 2015 in respect of Defined Benefit Plans - Gratuity (the company does not provide encashment of earned leave) on the following assumptions:

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

In the absence of any investment, description of the basis required to be used to determine the overall expected rate of return on assets including.

(iii) Segment Reporting

The Management has considered the whole business of the company as a single segment i.e. non formal education, thus no segment reporting is required.

(iv) Disclosure of related parties/ related party transactions:

(a) List of related parties over which control exists:

(b) Name of the related parties with whom transactions were carried out during the period and description of relationship:

- Subsidiary:

Career Point Edutech Limited

Career Point Infra Limited

Gyan Eduventure Private Limited

Career Point Accessories Private Limited

Srajan Agritech Private Limited

Srajan Capital Limited Coupler Enterprises Private Limited

* Associates companies:

Imperial Infin Pvt Ltd

* Key Management Personnel:

Mr. Pramod Maheshwari (Chairman & Managing Director)

Mr. Om Prakash Maheshwari (CFO & Whole time Director)

Mr. Nawal Kishore Maheshwari (Whole time Director)

Smt. Neelima Maheshwari (Wife of Director)

* Relative of Key Management Personnel:

Smt. Shilpa Maheshwari (Wife of Director)

* Enterprises under same Management:

Diamond Business Solutions Private Ltd.

Om Prakash Maheshwari (HUF)

Wellwin Technosoft Private Ltd.

Gopi Bai Foundation

(v) The company is in the process of:-

16. To amend the Memorandum of Association in compliances to section 4 (6) read with Table A to Schedule I to remove other objects of the Company

17. To appoint a Company Secretary for secretarial audit in compliance of section 204 of the Companies Act, 2013 for the financial year 2014-15.

18. Maintaining its record on electronic forms as required under section 120 of the Companies Act, 2013.

19. A CSR Committee is constituted and policy framed and uploaded on the website of the Company, however the company yet to start expending on CSR Activity.

20. Fees received by the company's franchises are deposited in the franchise wise bank account of the company. However, company is recording in its books of account only the amount which company is entitled to receive as royalty as per the agreement entered into with the franchise.

21. Basic and Diluted Earnings per share ["EPS"] computed in accordance with Accounting Standard (AS) 20 "Earnings Per Share"

22. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2015.

23. Figures for the previous year have been regrouped/reclassified wherever necessary.

24. GENERAL INFORMATION:

Career Point Limited is engaged in providing Non Formal and Formal Education Service which inter alia include Education Consultancy, Management Services and Tutorial Services.


Mar 31, 2014

1 Additional Information to the Financial Statements

(i) Estimated amount of contracts remaining to be executed on capital account (net of advances): Rs.273,62,489/- (Previous Year 51,282,125 /-).

(ii) Provision for wealth tax for the year is Rs.12,00,000/- (Previous year Rs.14,42,366/-) included in current tax.

(iii) The Company has classified the various benefits provided to employees as follows:

(a) Defined Contribution Plans – Provident Fund

(b) State Plans – Employer’s Contribution to Employees Pension Scheme, 1995.

During the period the Company has recognized Rs.3,18,986/- (Previous year-Rs.2,81,504/-) as employer’s contribution to Provident Fund and Rs.5,89,274/- (Previous Year- Rs.5,47,021/-) as employer’s contribution to Employees Pension Scheme, 1995 in the Profit and Loss Account.

The company is depositing P.F contribution only for eligible employees within statutory limits. The employees whose income is above the statutory limits have opted not to subscribe and accordingly, the company is not required to make the contribution.

(c) Defined Benefit Plans:

I) Gratuity

II) Leave Encashment

In accordance with Accounting Standard-15 (revised 2005) actuarial valuation was carried out as at 31st March, 2014 in respect of Defined Benefit Plans – Gratuity (the company does not provide encashment of earned leave) on the following assumptions:

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

In the absence of any investment, description of the basis required to be used to determine the overall expected rate of return on assets including major categories of plan assets has not been given.

(iv) Segment Reporting

The management has considered the whole business of the company as a single segment i.e. non formal education, thus no segment reporting is required.

(v) Disclosure of related parties/ related party transactions:

(a) List of related parties over which control exists

Name of the Related Party Relationship

Career Point Edutech Limited Subsidiary

Career Point Infra Limited Subsidiary

Gyan Eduventure Private Limited Subsidiary

Career Point Accessories Private Limited Subsidiary

Srajan Agritech Private Limited Subsidiary

Srajan Capital Limited Subsidiary

Coupler Enterprises Private Limited Subsidiary

Kota Automobiles Private Limited Subsidiary

Career Point Accessories Private Limited Subsidiary

(b) Name of the related parties with whom transactions were carried out during the period and description of relationship:

- Subsidiary:

Career Point Edutech Limited

Career Point Infra Limited

Gyan Eduventure Private Limited

Career Point Accessories Private Limited

Srajan Agritech Private Limited

Srajan Capital Limited

Coupler Enterprises Private Limited

- Associates companies:

Imperial Infin Pvt Ltd

- Key Management Personnel:

Mr. Pramod Maheshwari (Chairman & Managing Director) Mr. Om Prakash Maheshwari (CFO & Whole time Director) Mr. Nawal Kishore Maheshwari (Whole time Director)

- Relative of Key Management Personnel:

Smt. Shilpa Maheshwari (Wife of Director) Smt. Neelima Maheshwari (Wife of Director)

- Enterprises under same Management:

Diamond Business Solutions Private Ltd.

Om Prakash Maheshwari (HUF)

Wellwin Technosoft Private Ltd.

Gopi Bai Foundation

Career Point Education Society

(vi) Fees received by the company’s franchisees are deposited in the franchisee wise bank account of the company. However,

company is recording in its books of account only the amount which company is entitled to receive as royalty as per the agreement entered into with the franchisee.

(ix) There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2014.

(x) Figures for the previous year have been regrouped/reclassified wherever necessary.

GENERAL INFORMATION:

Career Point Limited is engaged in providing Non Formal Education Service which inter alia include Education Consultancy,

Management Services and Tutorial Services.


Mar 31, 2013

1. Additional Information to the Financial Statements

(i). Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 51,282,125/- (Previous Year Rs. 87,836,908/-).

(ii) Provision for wealth tax for the year is Rs. 1,442,366/- (Previous year Rs. 1,400,000/-) included in current tax.

(iii) The Company has classified the various benefits provided to employees as follows:

(a) Defined Contribution Plans – Provident Fund

(b) State Plans – Employer’s Contribution to Employees Pension Scheme, 1995.

During the period the Company has recognized Rs. 281,504/- (Previous year-Rs. 278,309/-) as employer’s contribution to Provident Fund and Rs. 54,7021/- (Previous Year- Rs. 572,138/-) as employer’s contribution to Employees Pension Scheme, 1995 in the Profit and Loss Account.

The company is depositing P.F contribution only for eligible employees within statutory limits. The employees whose income are above the statutory limits have opted not to subscribe and accordingly, the company is not required to make the contribution.

(c) Defined Benefit Plans: i) Gratuity

ii) Leave Encashment

In accordance with Accounting Standard-15 (revised 2005) actuarial valuation was carried out as at 31st March, 2013 in respect of Defined Benefit Plans – Gratuity and Leave Encashment (the company does not provide encashment of earned leave) on the following assumptions:

(iv) Segment Reporting

The management has considered the whole business of the company as a single segment, thus no segment reporting is required. (v) Disclosure of related parties/ related party transactions:

(a) List of related parties over which control exists

(b) Name of the related parties with whom transactions were carried out during the period and description of relationship:

- Subsidiary: - Relative of Key Management Personnel:

Career Point Edutech Limited Smt. Shilpa Maheshwari (Wife of Director)

Career Point Infra Limited Smt. Neelima Maheshwari (Wife of Director)

Gyan Eduventure Private Limited Smt. Rekha Maheshwari (Wife of Director)

Career Point Accessories Private Limited

- Enterprises under same Management:

- Associates companies: Diamond Business Solutions Private Ltd.

Imperial Infin Pvt Ltd Om Prakash Maheshwari (HUF)

Wellwin Technosoft Private Ltd.

- Key Management Personnel:

Gopi Bai Foundation Mr. Pramod Maheshwari (Chairman & Managing Director)

Career Point Education Society Mr. Om Prakash Maheshwari (CFO & Whole time Director)

Mr. Nawal Kishore Maheshwari (Whole time Director)

(v) Fees received by the company’s franchisees are deposited in the franchisee wise bank account of the company. However, company is recording in its books of account only the amount which company is entitled to receive as royalty as per the agreement enterd into with the franchisee.

(vi) There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2013.

(vii) Figures for the previous year have been regrouped/reclassified wherever necessary.

GENERAL INFORMATION:

Career Point Limited is engaged in providing Education Consultancy, Management Services and Tutorial Services.


Mar 31, 2012

NOTE 1. CONTINGENT LIABILITIES

Particulars For the year ended For the year ended March 31, 2012 March 31, 2011

Service tax liability 1,054,036 1,054,036

Income tax liability against matters in appeal 950,525 950,525

Claims against the Company not acknowledged as debts 5,300,436 1,672,730

Value added tax liability 7,757,800 7,757,800

Income tax search case*

TOTAL 15,062,797 11,435,091

*An undisclosed income amounting to Rs. 60,058,330/- nas been detected by the income lax Department during search and seizure carried on 4th December, 2009 under Income Tax Act, 1961 in the office premises of the Company as well as the residence of the Executive Directors. Out of this income it is not clearly mentioned as to how much pertains to the individuals and how much to the Company. Consequently the liability of the Company in respect of this undisclosed income has become difficult to be ascertained.

2. Estimated amount of contracts remaining to be executed on capital account (net of advances): Rs. 87,836,908/- (Previous Year Rs. 35,055,230/-).

3. Provision for wealth tax for the Period is Rs. 14,00,000/- (Previous year Rs. 1,150,000/-) included in current tax.

4. The Company has classified the various benefits provided to employees as follows: (i) Defined Contribution Plans - Provident Fund

(ii) State Plans - Employer's Contribution to Employees Pension Scheme, 1995.

During the period the Company has recognised Rs. 278,309 /- (Previous year- Rs. 221,094/-) as employer's contribution to Provident Fund and Rs. 572,138 /- (Previous Year- Rs. 448,295/-) as employer's contribution to Employees Pension Scheme, 1995 in the Profit and Loss Account.

The Company is depositing RF contribution only for statutory required employees. The employees who are above the statutory limits have opted not to subscribe and accordingly, the Company is not required to make the contribution.

(iii) Defined Benefit Plans:

a) Gratuity

b) Leave Encashment

In accordance with Accounting Standard-15 (revised 2005) actuarial valuation was carried out as at 31st March, 2012 in respect of Defined Benefit Plans - Gratuity and Leave Encashment (the Company does not provide encashment of earned leave) on the following assumptions:

5. Segment Reporting

The management has considered the whole business of the Company as a single segment, thus no segment reporting is required.

6. Disclosure of related parties/ related party transactions:

(b) Name of the related parties with whom transactions were carried out during the period and description of relationship:

- Subsidiary:

Career Point Edutech Limited Career Point Infra Limited

- Key Management Personnel:

Mr. Pramod Maheshwari (Managing Director)

Mr. Om Prakash Maheshwari (Whole time Director)

Mr. Nawal Kishore Maheshwari (Whole time Director)

- Relative of Key Management Personnel:

Smt. Shilpa Maheshwari (Wife of Director) Smt. Neelima Maheshwari (Wife of Director) Smt. Rekha Maheshwari (Wife of Director)

- Enterprises under same Management:

Diamond Business Solutions Private Ltd. Om Prakash Maheshwari (HUF) Wellwin Technosoft Private Ltd. Imperial Infin Pvt Ltd Gopi Bai Foundation Proseed Foundation

7. Fees received by the Company's franchisees are deposited in the franchisee wise bank account of the Company. However, Company is recording in its books of account only the amount which Company is entitle to receive as royalty as per the agreement enter into with the franchisee.

8. The management of the Company has reviewed the existing assets working conditions and utility as at the balance sheet date and are of the opinion that there exists no indication that an asset has been impaired and hence no impairment has been carried out.

9. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31 st March, 201 2.

10. Figures for the previous period have been regrouped / reclassified in line with revised Schedule VI as directed by MCA through Notification No. S.O. 447(E).

GENERAL INFORMATION:

Career Point Limited is a leading education Company in India, operating in both the Informal and Formal Education streams by providing Tutorial Services and Education Consultancy & Management services across the value chain.


Mar 31, 2011

1. During the Year, the Company brought an Initial Public Offer (IPO) of 37,12,642 Equity Shares of Rs.10/- each at a premium of Rs.300/- per share (for employees Rs.285/- per share for eligible employees) for cash aggregating to Rs.11,500 Lacs. The Shares of the Company got listed on Bombay Stock Exchange Ltd. and National Stock Exchange of India Ltd. on October 6, 2010. The share premium amounting to Rs.11,128.73 Lacs has been credited to Share Premium account. The expenses in connection with issue of Equity Shares amounting to Rs.676.45 Lacs have been adjusted to Share Premium account.

2. Estimated amount of contracts remaining to be executed on capital account (net of advances): Rs.3,50,55,230 /- (Previous Year Rs. 9,08,737/-).

3. Provision for current taxes includes provision for wealth tax for the year is Rs.11,50,000/- (Previous year Rs.5,63,000/-).

4. The Company has classified the various benefits provided to employees as follows:

(i) Defined Contribution Plans – Provident Fund

(ii) State Plans – Employer's Contribution to Employees Pension Scheme, 1995.

During the year the Company has recognised Rs.2,21,094 /- (Previous year - Rs.1,27,040/-) as employer's contribution to Provident Fund and Rs. 4,48,295/- (Previous Year- Rs.2,88,349/-) as employer's contribution to Employees Pension Scheme, 1995 in the Profit and Loss Account.

The Company is depositing P.F contribution only for statutory required employees. The employees who are above the statutory limits have opted not to subscribe and accordingly, the Company is not required to make the contribution.

(iii) Defined Benefit Plans:

a) Gratuity

b) Leave Encashment

In accordance with Accounting Standard-15 (revised 2005) actuarial valuation was carried out as at March 31, 2011 in respect of Defined Benefit Plans – Gratuity and Leave Encashment (the Company does not provide encashment of earned leave) on the following assumptions:

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

In the absence of any investment, description of the basis required to be used to determine the overall expected rate of return on assets including major categories of plan assets has not been given.

5. Borrowing Cost:

According to the management of the Company, the funds utilised for the purpose of Assets acquired and capitalised/under Work in Progress are generated by internal accruals and equity raised.

6. Segment Reporting

The management has considered the whole business of the Company as a single segment, thus no segment reporting is required.

ii. Name of the related parties with whom transactions were carried out during the period and description of relationship:

Subsidiary:

Career Point Edutech Limited

Career Point Infra Limited

Key Management Personnel:

Mr. Pramod Maheshwari (Managing Director)

Mr. Om Prakash Maheshwari (Whole time Director)

Mr. Nawal Kishore Maheshwari (Whole time Director)

Relative of Key Management Personnel:

Smt. Shilpa Maheshwari (Wife of Director)

Smt. Neelima Maheshwari (Wife of Director)

Smt. Rekha Maheshwari (Wife of Director)

Enterprises under same Management:

Diamond Business Solutions Private Ltd.

Om Prakash Maheshwari (HUF)

Wellwin Technosoft Private Ltd.

Imperial Infin Pvt Ltd

Gopi Bai Foundation

Proseed Foundation

7. (a) During the Year, the Company has got sanctioned secured loan-overdraft facility of Rs.449.10 Lacs from HDFC Bank against the security of Fixed Deposit Receipts of Rs.499 Lacs issued by HDFC Bank in the name of the Company.

(b) During the Year, the Company has also got sanctioned secured loan-overdraft facility of Rs.210 Lacs from Oriental Bank of Commerce against the security of Fixed Deposit Receipts of Rs.222 Lacs issued by Bank in the name of the Company.

(c) The Company had also obtained secured loan- Dropline Overdraft facility of Rs.500 Lacs from HDFC Bank during the financial year 2008-09, Rs.283 lacs is the available drawing limit as on March 31, 2011, against the security of below mentioned properties.

- E-8(2), Road No.1, IPIA, Kota

- 112A, Shakti Nagar, Kota

- 112B, Shakti Nagar, Kota

8. During the year, the Company has given Rs.4,424.75 Lacs (Previous year Rs.3,258.51 Lacs) including interest to its wholly owned subsidiary M/s Career Point Infra Limited and Rs.20.32 Lacs (Previous year Rs.21.51 Lacs) including interest to its subsidiary M/s Career Point Edutech Limited against Inter Corporate deposit (ICD) converted into loans at the rate of interest of 9% per annum for meeting capital expenditure requirements. Both the subsidiaries undertake to repay the loan amount alongwith the accrued interest outstanding as on March 31, 2013 as per schedule mentioned below within three years:- (a) Repayment of 20% of the outstanding amount in quarterly installments in F.Y. 2013-14.

(b) Repayment of 40% of the outstanding amount in quarterly installments in F.Y. 2014-15.

(c) Repayment of 40% of the outstanding amount in quarterly installments in F.Y. 2015-16.

9. The Company has given an unsecured loan of Rs.2,000.16 Lacs at the rate of interest 9% p.a. to Gopi Bai Foundation Trust, a Public Charitable Trust, repayable along with the accrued interest within a period of three months.

10. Loans to others includes Rs.321.58 Lacs given to various parties at the interest rates varying from 9% to 20%.

11. Provision for Bonus has been made for Rs.3,37,511/-.(Previous year 1,81,974/-) for eligible employees for the year ended March 31, 2011.

12. Fees received by the Company's franchisees are deposited in the franchisee wise bank account of the Company. However, Company is recording in its books of account only the amount which Company is entitle to receive as royalty as per the agreement enter into with the franchisee.

13. Basic and Diluted Earning per share ["EPS"] computed in accordance with Accounting Standard (AS) 20 "Earnings per Share"

14. The management of the Company has reviewed the existing assets working conditions and utility as at the balance sheet date and are of the opinion that there exists no indication that an asset has been impaired and hence no impairment has been carried out.

15. Amount payable to Micro, Small & Medium Enterprises (MSMED Act)

(a) Inspite of absence of a data-base identifying creditors as Micro, Small & Medium Enterprises, the management is of the opinion that there are no parties which can be classified as Micro, Small & Medium Enterprises to whom the Company owes any sum. The Auditors have accepted the representations of the management in this matter.

(b) The Company will identify the suppliers who are covered under " The Micro, Small & Medium Enterprises Development Act, 2006" on receiving the information from them, after which necessary information as required under the said Act will be complied.

16. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2011.

17. Figures for the previous period have been regrouped / reclassified wherever necessary. As per our report attached

Find IFSC