Mar 31, 2015
We have audited the accompanying standalone financial statements of
EVERONN EDUCATION LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information for
the year then ended.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
standalone financial statements.
Basis for Qualified Opinion
i) We draw attention to Note No 2.27 - Deferred tax asset has been
carried over as at year end 31st March, 2015, as the company is of the
view that there is virtual certainty and has ability to continue as a
going concern depends on the successful outcome of the management
plans. However on a prudent basis the company has not made any
additional provision in the current year towards deferred tax asset.
ii) We draw attention to Note No 2.36 towards Non-provision for Leave
Encashment as specified under Accounting Standard 15 issued by ICAI. In
the absence of Actuarial Valuation, we are unable to ascertain the
effect of such non-provisioning.
iii) We draw attention to Note No. 2.42 wherein the company has
indicated that it is assessing the carrying value of investment in
subsidiaries and advances to subsidiaries, after taking into account
the future operational plans and cash flows and accordingly no
impairment loss has been recognized at this stage.
iv) We draw attention to Note No.2.43 - Lease Charges amounting to
Rs.23,43,35('000) for the year ended March 2015 has not been provided
in the books for some parties as required by the contractual terms. The
overall non-provisioning of lease rental as at 31st March 2015 amounts
to Rs.46,29,56('000). Had this been considered in the audited results
for the period ended March, 2015 the loss would have been Rs.
107,82,35('000) as against reported loss of Rs 84,39,00('000) and
retained earning would have been Rs. 62,23,27(000) as against reported
balance of Rs. 108,52,83(000)
v) We draw attention to Note No.2.47 regarding non ascertaining of
complete particulars of dues to Micro, Small and Medium Enterprises, if
any, under MSMED Act, 2006, and provision towards interest, if any, is
not ascertained at this stage.
vi) We draw attention to Note No.2.49 of Financial Statements with
regard to non-receipt of Confirmation of balances from Debitors
including dues from Government Companies, Creditors, Loans and
Advances, Investments, banks and Other Liabilities. These amounts are
subject to adjustments, if any, after reconciliation and for
identification of doubtful debts/advances, which are not ascertainable
at this stage.
vii) We draw attention to Note No 2.50, wherein the company has stated
that provision towards impairment/ loss under AS 28 has not been
ascertained.
viii) We draw attention to Note No. 2.51 wherein the company has
indicated the receipt of income tax demand notices for various
assessment years commencing from AY 06-07 amounting to Rs.
97,83,39(000) and appeals filed against the orders. The Company has
sought the stay of demand of tax inclusive of interest for which no
provision has been made beneficial .
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects/ possible effects of
the matter described in the Basis for Qualified Opinion paragraph to
the audited financials which are not ascertainable, had the
observations in the note number 2.43 of the financial statement with
regards to the lease charges had been considered the loss for the year
ended March,31,2015 would have been a loss of Rs 107,82,35('000) as
against reported loss of Rs 84,39,00('000) and retained earning would
have been Rs 62,23,27(000) as against reported balance of Rs.
108,52,83(000), subject to paragraphs above the standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2015, and its Loss and its
cash flows for the year ended on that date.
Emphasis of Matter
a) Without qualifying our opinion, attention is drawn to accounting
policy no. 2.1 of wherein, in the opinion of the management, despite
incurring of substantial losses during the current financial year,
erosion of net worth and existence of certain liabilities including
banks, and other commitments, which are due for payment during the
subsequent financial year the financial statements have been prepared
on a going concern basis in view of the matters more fully explained in
the said note.. The company's ability to continue as a going concern
is dependent on the successful outcome of the management plans.
b) We draw attention to Note no: 2.56 The company in accordance with
the order of Hon'ble High Court of Madras had utilised an amount of Rs.
65,66,64(000) from the Business Restructuring Reserve created in the
earlier year.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
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 best of 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 the Company so far as it appears from our examination of
those books.
c. The Balance Sheet and the Statement of Profit and Loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. The matter described in the Basis for Qualified Opinion paragraph
above, in our opinion, may have an adverse effect on the functioning of
the Company.
a. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
b. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) Based on the information and explanation given to us, the Company
has disclosed the impact of pending litigations on its financial
position in its financial statements in Note no. 2.41 & 2.54.
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
Based on the audit procedures performed for the purpose of reporting,
true and fair view of the financial statements of the company and
taking into consideration, the informations and explanations given to
us, and the books of accounts and other records examined by us, in the
normal course of audit, we report that;
i. (a) The Company has not maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has not carried out physical verification of fixed
assets during the year. The company does not have a regular program of
physical verification of its fixed assets. In our opinion the frequency
of physical verification is not reasonable having regard to the size of
the company and nature of its assets. Fixed Assets lying with third
parties are also subject to confirmation. We are therefore unable to
comment on the discrepancies, if any, which could have arisen on such
verification.
(c) The management has also represented that no substantial part of
fixed assets have been disposed off during the year, to affect the
going concern.
ii. The company did not held any inventory during the year accordingly
this clause is not applicable.
iii. The company has granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act an amount of Rs 150,40,15( '000)
is outstanding as on 31st March 2015.
(a) In respect of loans given as there is no written repayment schedule
we are unable to comment as to whether the payment of principal amount
is regular.
(b) As there is no written repayment schedule and based on the
information and explanation provided to us no amount has been demanded
accordingly there is no amount overdue for more than Rs one Lakh.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are customized and are of special nature and suitable
alternative sources are not readily available for obtaining comparable
quotations. Additional strengthening of the internal control procedures
with regard to purchase of fixed assets is recommended so as to be
commensurate with the current size of the Company and nature of its
business. However, the management has represented that it is taking
reasonable steps to correct the said weaknesses and in our opinion,
there is a continuing failure to correct major weaknesses in internal
control system relating to purchase of fixed assets.
v. As per the information and explanation provided to us the Company
has not accepted any deposits from the public. However, temporary loans
have been taken from employee welfare trust without adequate records.
vi. As per the information and explanations given to us the
maintenance of cost records has not been prescribed by the Central
Government under sub-section (1) of Section 148 of the Companies Act,
2013.
vii. The company is generally regular in depositing, undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess and other material statutory dues, wherever applicable to
it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2015 for a period of more than six months
from the date they became payable except following:-
Particulars Amount
Professional Tax 16,85 ('000)
Details of dues of Income-Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Value Added Tax and Cess which have not been
deposited as on March 31,2015 on account of disputes are given below:
Statute Nature of Dues Forum where
Dispute is pending
Income Tax Act,1961 Income Tax Dues CIT Appeals
Statute Period to which the Amount
amount relates (Rs. '000)
Income Tax Act,1961 AY 2005-06 to AY 2011-12 97,83,39
The Company has been generally regular in transferring amounts to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under within time.
viii. The company had accumulated losses at the end of the financial
year and has incurred cash losses in the current and in the immediately
preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company had restructured its loans with various banks
and in accordance to the revised repayment schedule the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders subject to borrowing Standard Chartered Bank, which
is currently under the DRT.
x. According to the information and explanations given to us, the
Company has given guarantee towards loans taken by others from banks
and financial institutions, for which no counter guarantee has been
obtained from the parties.
xi. According to the information and explanations given to us, the
Company has used the Term Loan availed during the current year for the
purpose for which it was availed.
xii. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India and based on information and explanation
given to us, we have neither come across any instance of fraud on or by
the Company noticed or reported during the course of our audit nor have
we been informed of any such instance by the Management.
For M/s. P CHANDRASEKAR
Chartered Accountants
Firm Registration No.000580S
P Chandrasekaran
Partner
Membership No.026037
Place : Chennai
Date: 18th August, 2015
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Everonn
Education Limited, which comprise the Balance Sheet as at March 31,
2013, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended on that date and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
i) We draw attention to Note No. 2.41 the company has assessed the
carrying value of investment in subsidiaries and advances to
subsidiaries taking into account the future operational plans and cash
flows as prepared and represented by the management and accordingly no
impairment loss has been recognized at this stage.
ii) We draw attention to Note No.2.48 of Financial Statements regarding
non ascertaining complete particulars (including interest payable) of
dues to micro, small and medium enterprises if any under MSMEDAct,
2006, provision if any to be made is not ascertainable at this stage.
Hi) We draw attention to Note No.2.50 of Financial Statements with
regard to non receipt of Confirmation of balances from Debtors
including dues from Government Companies, Creditors, Loans and
Advances, Investments and Other Liabilities. These amounts are subject
to adjustments, if any, after reconciliation and for identification of
doubtful debts/advances, which are not ascertainable at this stage.
iv) We draw attention to Note No 2.51, with regard to review of
usefulness of the assets under AS 28, for which provision towards
impairment/loss has not been ascertained.
v) We draw attention to Note No. 2.52 the company has received various
demand notices of income tax and interest thereon in respect of
Assessment Years 2007-08 to 2010-11. The matter pertains to various
additions made by the department. The company has disputed the issue
and has filed appeal against the above demand by the tax authorities
including the stay of demand amounting to Rs. 4,13,174 (WO). The company
has received various show cause notices in respect of service tax
matters also. The management is of the view that the appropriate
adjustments/provisions will be made on the final outcome of these
matters and hence no provision has been made for the taxes, penalties,
and interests for non/delayed payments of these dues as these amounts
are not determined.
We are not aware of the any material adjustments which may arise qn
account of adjustments relating to issues set out above and subsequent
to receipt of such confirmation / reconciliation.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Emphasis of Matter
a) Without qualifying our opinion, attention is drawn to accounting
policy no. 2.1 of the financials statement on the existence of certain
liabilities including banks, and other commitments, which are due for
payment during the subsequent financial year and the management plan
/action for meeting the same. The company''s ability to continue as a
going concern is dependent on the successful outcome of the management
plans.
b) We draw attention to Note No: 2.19 Deferred tax asset has been
recognized for the year ended 31s'' March,2013, as the company is of the
view that there is virtual certainty and has ability to continue as a
going concern depends on the successful outcome of the management
plans.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit except for the matter described in the Basis for Qualified
Opinion paragraph;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books ;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. except for the effects / possible effects of the matter described
in the Basis for Qualified Opinion paragraph, in our opinion, the
Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Act;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' in the
Independent Auditors'' Report of even date to the members of Everonn
Education Limited on the financial statements for the year ended
March,31,2013
Based on the audit procedures performed for the purpose of reporting,
true and fair view of the financial statements of the company and
taking into consideration, the informations and explanations given to
us, and the books of accounts and other records examined by us, in the
normal course of audit, we report that;
i. (a) The Company has not maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has not carried out physical verification of fixed
assets during the year. The company does not have a regular program of
physical verification of its fixed assets. In our opinion the frequency
of physical verification is not reasonable having regard to the size of
the company and nature of its assets. Fixed Assets lying with third
parties are also subject to confirmation. We are therefore unable to
comment on the discrepancies, if any, which could have arisen on such
verification.
(c) The management has also represented that no substantial part of
fixed assets have been disposed off during the year, to affect the
going concern.
ii. Having regard to the nature of the Company''s business / activities,
clause 4(H) of CARO is not applicable to the Company as there is no
inventory being held by the company.
iii. (a) According to the information and explanations given to us,
during the period under review, the company has availed loans from
subsidiaries listed in the Register maintained under section 301 of the
Companies Act, 1956, the Outstanding Balance as on 31st March 2013 is
Rs.2,47,20,91(''000) and the maximum amount involved during the period
is Rs.2,60,71,89(''000). There are no written terms and conditions for
repayment and interest on loans. Hence the availment of loan is prima
facie not prejudicial to the interest of the company. In respect of the
said loans, the same are repayable on demand and there are no overdue
amounts.
(b) According to the information and explanations given to us, during
the period under review, the company has granted loan to Subsidiaries
listed in the Register maintained under Section 301 of the Companies
Act, 1956. The outstanding balance as on 31st March 2013 is
Rs.1,88,18,68(''000) and the maximum amount involved during the period
is Rs. 1,88,23,68 (WO.) There are no stipulated terms and condition on
either the interest rate or the repayment schedule. However the rate of
interest and the interest free nature where applicable and other terms
and conditions of such loans are not, prima facie, prejudicial to the
interest of the company. As there is no written repayment schedule we
are unable to comment as to whether the payment of principal amount is
regular.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are customized and are of special nature and suitable
alternative sources are not readily available for obtaining comparable
quotations. Additional strengthening of the internal control procedures
with regard to purchase of fixed assets is recommended so as to be
commensurate with the current size of the Company and nature of its
business. However, the management has represented that it is taking
reasonable steps to correct the said weaknesses and in our opinion,
there is a continuing failure to correct major weaknesses in internal
control system relating to purchase of fixed assets.
v. According to the information and explanations given to us, we are of
the opinion that transactions that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been
generally so entered.
vi. The company has not accepted deposits from the public, under the
directives issued by the Reserve Bank of India and the provisions of
sections 58A and 58AA of the Act and the rules framed there under.
However, temporary loans have been taken from employee welfare trust
without adequate records.
vii. The company did not have an internal audit system during the
year.
viii. The maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub-section (1) of section 209
of the Act.
ix. (a) According to the information and explanations given to us, the
company has been generally depositing undisputed statutory dues with
few delays including Employees Provident Fund, Employees'' State
Insurance, Investor Protection fund, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Income Tax, TDS, Professional Tax and any
other statutory dues with the appropriate authorities during the year.
There have been significant delays in large number of cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, service tax etc
were in arrears as at 31.03.2013 for a period of more than six months
from the date they became payable excepting;
Particulars Amount (Rs. in ''000) Period to which
it relates
Income Tax 26,02 AY-08-09
Income Tax 16,07,70 AY: 11-12
Service Tax 59,07 YE: March 13
Professional Tax 13,24 YE: March 13
Employee State Insurance 15 YE: March 13
(c) According to the information and explanations made available to us
and on the basis of examination of records of the Company, the dues of
Excise Duty, Sales Tax and Income Tax as at 31st March 2013 which have
not been deposited on account of any dispute are as follows.
Name of the
Statute Forum where
matter Amount
(Nature of the Dues) is pending (Rs. in ''000)
Income Tax AY : 2007-08 CIT(A) 5,23,68
Income Tax AY : 2008-09 CIT(A) 12,27,62
Income Tax AY: 2010-11 CIT(A) 17,17,25
Income Tax AY : 2009-10 CIT(A) 6,63,19
Service Tax Since AY2006-07 DGCEI 9,42,69
x. In our opinion, the Company did not have accumulated losses at the
beginning of the year but has sustained cash losses during the current
financial year covered under our audit.
xi. As per the information and explanations made available to us, the
company has been generally regular in repayment of dues to financial
institutions or banks for the period ending 31st March, 13.
xii. According to the information and explanations given to us, the
company has not granted any loan or advance on the basis of Security by
way of pledge of shares, Debentures and other securities.
xiii. The provisions of Clause 4(xiii) of the Order relating to Chit
Funds / Nidhi are not applicable to the company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
xv. According to the information and explanations given to us, the
Company has given guarantee towards loans taken by others from banks
and financial institutions, for which no counter guarantee has been
obtained from the parties.
xvi. According to the information and explanations given to us, the
Company has used the Term Loan availed during the current year for the
purpose for which it was availed.
xvii. According to the Cash flow statement and other records examined
by us and based on the information and explanations given to us, on an
overall basis, funds raised on short term basis have not been used for
Long term Investment.
xviii. According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under Section 301 of
the Companies Act, 1956.
xix. The Company has not issued debentures during the year and
therefore the question of creating security or charge in respect
thereof does not arise.
xx. The Company has not raised any funds by means of public issue
during the current year and hence the question of disclosing the
end-use of money raised by way of public issue does not arise.
xxi. Based on the audit procedures performed and on the basis of
representation obtained from the management, we report that no instance
of fraud on or by the company have been noted or reported by the
management during the year.
For M/S.P.CHANDRASEKAR
Chartered Accountants
Firm Registration No.000580S
P.Chandrasekaran
Partner
Membership No.026037
Chennai Date:30th May,2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s Everonn Education
Limited as at 31st March 2012, the Statement of Profit and Loss and the
Cash flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 of the said order to the extent they
are applicable to the company.
4. Further to our comments in the annexure referred to in Paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company, so far as it appears from our examination of such
books.
c) The Balance Sheet, the Statement of Profit and loss and the Cash
Flow statement referred to in this report are in agreement with the
books of accounts of the Company.
d) In our opinion, the Balance Sheet, the Statement of Profit and loss
and the Cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 with the exception of Accounting Standard 28 on
Impairment of Assets, Accounting Standard -13 on Investments.
e) Attention is invited to the following:
i) Note No.2.41 of Financial Statements regarding non Provision of
Diminution in Value of Investments in Subsidiaries which have incurred
losses and whose Networth has been partially eroded, for the reasons
stated therein.
ii) Note No.2.48 of Financial Statements regarding non ascertaining
complete particulars (including interest payable) on dues to Micro,
Small and Medium Enterprises if any under MSMED Act, 2006, provision if
any to be made is not ascertainable at this stage.
iii) Note No.2.49 of Financial Statements with regard to non receipt of
Confirmation of Balance from Debtors including Dues from Government
Companies, Creditors, Loans and Advances and Other Liabilities. These
amounts are subject to adjustments if any, after reconciliation and
identification of doubtful debts / advances, which are not
ascertainable at this stage.
iv) Note No.2.50 of Financial Statements with regard to non provision
of impairment loss pending completion of assessment. The impact if any
on the financial statements is not ascertainable at this stage.
In all the cases referred to above, effect on financial statements is
not ascertainable. We do not express independent opinion on these
matters.
f) On the basis of written representations received from the directors,
as on 31st March 2012 and taken on record by the Board of Directors, we
report that none of the director is disqualified as on 31st march 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act 1956.
5. Subject to our comments vide para 4(e) above, in our opinion and to
the best of our information and according to the explanations given to
us, the said financial statements, read together with the notes thereon
and schedules attached thereto, give the information required by the
Companies Act 1956, in the manner so required and present a true and
fair view, in conformity with the accounting principles generally
accepted in India.
i) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2012;
ii) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
iii) in the case of the Cash flow statement, of the Cash flows for the
year ended on that date;
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
i. (a) The Company is maintaining records showing full particulars,
including quantitative details and situation of fixed assets. However
comprehensive description of assets, their current location and
accumulated depreciation needs to be updated in the asset records.
(b) The Company has not carried out physical verification of fixed
assets during the year. The company does not have a regular program of
physical verification of its fixed assets. In our opinion the
periodicity of physical verification is not reasonable. Fixed Assets
lying with third parties are also subject to confirmation.
(c) The management has also represented that no substantial part of
fixed assets have been disposed off during the year, to affect the
going concern.
ii. Having regard to the nature of the Company's business /
activities, clause 4(ii) of CARO is not applicable to the Company.
There is no inventory being held by the company.
iii. (a) According to the information and explanations given to us,
during the period under review, the company has availed loans from
subsidiaries listed in the Register maintained under section 301 of the
Companies Act, 1956, the Outstanding Balance as on 31st March 2012 is
Rs.17,84,170 ('000) and the maximum amount involved during the period
is Rs.20,33,652 ('000). There are no written terms and conditions for
repayment and interest on loans. Hence the availment of loan is prima
facie not prejudicial to the interest of the company. In respect of the
said loans, the same are repayable on demand and there are no overdue
amounts.
(b) According to the information and explanations given to us, during
the period under review, the company has granted loan to Subsidiaries
listed in the Register maintained under Section 301 of the Companies
Act, 1956. The outstanding balance as on 31st March 2012 is
Rs.17,12,407 ('000) and the maximum amount involved during the period
is Rs.19,49,917 ('000.) There are no stipulated terms and condition on
either the interest rate or the repayment schedule. However the rate of
interest and the interest free nature where applicable and other terms
and conditions of such loans are not, prima facie, prejudicial to the
interest of the company. The interest rate charged by the company is
lesser than the Standard Rate as specified by the Reserve Bank of
India.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are customized and are of special nature and suitable
alternative sources are not readily available for obtaining comparable
quotations. Additional strengthening of the internal control procedures
with regard to purchase of fixed assets is recommended so as to be
commensurate with the current size of the Company and nature of its
business. However, the management has represented that it is taking
reasonable steps to correct the said weaknesses and we have not
observed any other continuing failure to correct major weaknesses in
internal controls.
v. According to the informations and explanations given to us, we are
of the opinion that transactions that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956 have
been generally so entered.
vi. The company has not accepted deposits from the public, under the
directives issued by the Reserve Bank of India and the provisions of
sections 58A and 58AA of the Act and the rules framed there under.
vii. According to the informations and explanations given to us the
company has Internal audit system commensurate with the size and nature
of the business. The Scope of Internal Audit needs to be enhanced
considering the risk assessments carriedout by the Company. The
Internal Audit System same needs to be adequately strengthened with
regard to scope and coverage and the volume of transactions.
viii. The maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub-section (1) of section 209
of the Act.
ix. (a) According to the information and explanations given to us, the
company has been depositing undisputed statutory dues with few delays
including Employees Provident Fund, Employees' State Insurance,
Investor Protection fund, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Income Tax, TDS, Professional Tax and any other
statutory dues with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, service tax etc
were in arrears as at 31.03.2012 for a period of more than six months
from the date they became payable excepting;
Particulars Amount (Rs. in '000)
Income Tax for the AY 2010-11 7845.26
Income Tax for the AY 2011-12 1,61,042.50
Professional Tax for the Earlier Years 1018.93
Professional Tax for the Half Year
Ended 30.09.2011 221.14
Service Tax Interest for the
FY 2009-10 10,314.15
Service Tax Interest for the FY 2010-11 1,579.58
Service Tax Interest for the FY 2011-12 67.12
(c) According to the information and explanations made available to us
and on the basis of examination of records of the Company, the dues of
Excise Duty, Sales Tax and Income Tax as at 31st March 2012 which have
not been deposited on account of any dispute are as follows.
Name of the
Statute Period to
which Forum where Amount
(Nature of
the Dues) the amount
relates matter is
pending (Rs. in '000)
Income Tax
for AY 2009-10 FY 2008-09 CIT(A) 2,13,046
Service Tax
Since FY 2006-07 Since FY 2005-06 DGCEI 9,400
x. The Company has no accumulated losses at the end of the year and
has not sustained cash losses during the current financial year covered
under our audit, and also in the immediately preceding financial year.
xi. As per the information and explanations made available to us, the
company has not defaulted in repayment of dues to financial
institutions or banks.
xii. According to the information and explanations given to us, the
company has not granted any loan or advance on the basis of Security by
way of pledge of shares, Debentures and other securities.
xiii. The provisions of Clause 4(xiii) of the Order relating to Chit
Funds / Nidhi are not applicable to the company.
xiv. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
xv. According to the information and explanations given to us, the
Company has given guarantee towards loans taken by others from banks
and financial institutions for which no counter guarantee has been
obtained from the parties.
xvi. According to the information and explanations given to us, the
Company has used the Term Loan availed during the current year for the
purpose for which it was availed.
xvii. According to the Cash flow statement and other records examined
by us and based on the information and explanations given to us, on an
overall basis, funds raised on short term basis have not been used for
Long term Investment.
xviii. According to the information and explanations given to us, the
Company has during the year made allotment of shares to Debenture
holders and other parties on preferential basis. The issue price of
shares so allotted has been determined in accordance to SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2009. Hence, it is
not prejudicial to the interests of the company.
xix. The Company has not issued debentures during the year and
therefore the question of creating security or charge in respect
thereof does not arise.
xx. The Company has not raised any funds by means of public issue
during the current year and hence the question of disclosing the
end-use of money raised by way of public issue does not arise.
xxi. Based on the audit procedures performed and on the basis of
representation obtained from the management, we report that no instance
of fraud on or by the company have been noted or reported by the
management during the year.
For M/s. P. Chandrasekar
Chartered Accountants
(FRN 000580S)
P. Chandrasekaran
Place : Bangalore Partner
Date : 13th August 2012 Membership No.: 026037
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. Everonn
Education Limited as at 31st March 2011 and the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed hereto. These financial statements are the responsibility of
the Company's Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India.Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the annexure referred to above, we
report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the
company, so far as it appears from our examination of those books.
(c) The Balance Sheet, Profit and Loss account and Cash flow statement
referred to in this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
flow statement dealt with by this report comply with the Accounting
Standards prescribed by the Institute of Chartered Accountants of India
and referred to in sub-section (3C) of Section 211 of the Companies
Act, 1956.
(e) On the basis of the written representations received from directors
as on 31.03.2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2011
from being appointed as a director in terms of clause (g) of sub-
section (1) of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Accounting policies and the notes there on give the information
required by the Companies Act 1956, in the manner so required and give
a true and fair view, in conformity with the accounting principles
generally accepted in India:
(i) in the case of Balance Sheet of the state of affairs of the company
as at 31st March 2011.
(ii) in the case of Profit and Loss account, of the profit for the year
ended on that date, and
(iii) in the case of Cash flow statement of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Fixed Assets have been physically verified by the Management during
the year and there is regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and
nature of its assets. As reported to us no material discrepancies have
been noticed on such verification.
3. Substantial parts of the Fixed Assets have not been sold during the
year under review affecting going concern.
4. The Company has granted unsecured loans to Subsidiary Companies
amounting to Rs.7800.90 Lakhs and the terms and conditions of loans
taken by the Company, unsecured, are prima facie not prejudicial to the
interest of the Company
5. The Company has not taken interest free unsecured loans from any
Company, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of Inventory, fixed assets and with
regard to rendering services. No major weaknesses in internal controls
were observed.
7. According to the information and explanations given to us, and
based on our verification, we are of the opinion that there are no
transactions that were required to be entered in the register
maintained under section 301 of the Companies Act, 1956.
8. In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs in
respect of any party during the year.
9. The Company has not accepted any deposits from the public during
the year requiring the compliance of provisions of Section 58A and
Section 58AA or any other relevant provisions of the Companies Act,
1956.
10. In our opinion, the Company has an Internal Audit system
commensurate with the size and nature of its business.
11. The Central Government has not prescribed the Maintenance of cost
records under Section 209 (1) (d) of the Companies Act,1956 for any of
the products of the Company.
12. As per the information and explanations made available to us and
also based on the records made available to us, in our opinion, the
Company is regular in depositing the undisputed statutory dues
including ESI, Income Tax, Sales Tax, Fringe Benefit Tax, Service Tax
and other statutory dues. There are no outstanding dues in respect of
the above items which are more than six months as at the balance sheet
date.
13. According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, excise
duty and cess which have not been deposited on account of any dispute.
14. The Company has not incurred cash losses during the year covered
by our audit and also during the immediately preceding financial year.
15. As per the information and explanations made available to us, the
Company has not defaulted in repayment of dues to any financial
institutions, bank or debenture holder.
16. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
17. The Company is not a chit fund or a nidhi / mutual benefit fund /
society and therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
18. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments and therefore, the
provisions of
clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
19. In our opinion and according to the information and explanations
given to us, the Company has given guarantee for loans taken by others
from Banks and Financial Institutions.
20. In our opinion, the term loans have been applied for the purpose
for which they were raised.
21. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long term
investment.
22. The Company has made preferential allotment of shares to parties
and companies. The allotments
and pricing of the shares have been made in accordance with the
guidelines laid down in this regard by SEBI and hence prices at which
shares have been issued are not prima facie, prejudicial to the
interest of the Company.
23. According to the information and explanations given to us and
based on the records examined by us, the Company has issued debentures
during the year.
24. The Company has not raised any money during the year through
public issue of any of its securities.
25. According to the information and explanations given to us, there
were no cases of fraud on or by the Company noticed or reported during
the year.
For M/s. P.CHANDRASEKAR
Chartered Accountants
FRN 000580S
Place:Chennai P. CHANDRASEKARAN
Date :May 23, 2011 Partner
M.No.26037
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. Everonn
Education Limited as at 31st March 2010 and the Profit and Loss Account
and also the Cash flow Statement for the year ended on that date
annexed hereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India.Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4 Further to our comments in the annexure referred to above, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the company, so far as it appears from our examination of those
books.
c) The Balance Sheet, Profit and Loss account and Cash flow statement
referred to in this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
flow statement dealt with by this report comply with the Accounting
Standards prescribed by the Institute of Chartered Accountants of India
and referred to in sub-section (3C) of Section 211 of the Companies
Act, 1956.
e) On the basis of the written representations received from directors
as on 31.03.2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2010
from being appointed as a director in terms of clause (g) of sub-
section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Accounting policies and the notes there on give the information
required by the Companies Act 1956, in the manner so required and give
a true and fair view, in conformity with the accounting principles
generally accepted in India:
i) in the case of Balance Sheet of the state of affairs of the company
as at 31st March 2010.
ii) ii) in the case of Profit and Loss account, of the profit for the
year ended on that date, and
iii) in the case of Cash flow statement of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. Fixed Assets have been physically verified by the Management during
the year and there is regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and
nature of its assets. As reported to us no material discrepancies have
been noticed on such verification.
3. Substantial part of the Fixed Assets have not been sold during the
year under review affecting going concern.
4. The companys inventories are inspected periodically by the
Companys Management.
5. The procedures of physical verification of inventory followed by
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
6. The company has maintained proper records of Inventory. The
discrepancies noticed on verification between the Physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
7. The Company has granted, secured or unsecured loans to six
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Act amounting to Rs. 748.47 Lakhs and the
terms and conditions of loans taken by the company, unsecured, are
prima facie not prejudicial to the interest of the company
8. The company has not taken interest free unsecured loans from any
company, firms or other parties covered in the register maintained
under section 301 of the Act .
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of Inventory, fixed assets and with
regard to rendering services. No major weaknesses in internal controls
were observed.
10. According to the information and explanations given to us, and
based on our verification, we are of the opinion that there are no
transactions that were required to be entered in the register
maintained under section 301 of the companies Act 1956.
11. In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the companies Act 1956 and exceeding the value of Rupees five lakhs in
respect of any party during the year.
12. The company has not accepted any deposits from the public during
the year requiring the compliance of provisions of Section 58A and
Section 58AA or any other relevant provisions of the companies act
1956.
13. In our opinion the company has an Internal Audit system
commensurate with the size and nature of its business.
14. The Central Government has not prescribed the Maintenance of cost
records under Section 209 (1) (d) of the Companies Act,1956 for any of
the products of the company.
15. As per the information and explanations made available to us and
also based on the records made available to us, in our opinion the
Company is regular in depositing the undisputed statutory dues
including ESI, Income Tax, Sales Tax, Fringe Benefit Tax, Service Tax
and other statutory dues, excepting Provident Fund in few cases there
were delays in remittance. There are no outstanding dues in respect of
the above items which are more than six months as at the balance sheet
date.
16. According to the information and explanations given to us, there
are no dues of sales tax, income tax, customs duty, wealth tax, excise
duty and cess which have not been deposited on account of any dispute.
17. The company has not incurred cash losses during the year covered
by our audit and also during the immediately preceding financial year.
18. As per the information and explanations made available to us the
company has not defaulted in repayment of dues to any financial
institutions, bank or debenture holder.
19. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
20. The company is not a chit fund or a nidhi / mutual benefit fund /
society and therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
21. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments and therefore, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
22. In our opinion and according to the information and explanations
given to us, the company has given guarantee for loans taken by others
from Banks and Financial Institutions.
23. In our opinion, the term loans have been applied for the purpose
for which they were raised.
24. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long term
investment.
25. The Company has not made preferential allotment of shares to
parties and companies .
For M/s P.CHANDRASEKAR
Chartered Accountants
Place : Chennai P.CHANDRASEKARAN
Date : May 19, 2010 Partner
M.No.26037
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