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Notes to Accounts of IEC Education Ltd.

Mar 31, 2015

1) In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables, the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where off on account cannot be ascertained at this stage.

2) In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term & Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

3) No provision for doubtful Trade receivable and Long term loans & advances of Rs.499.71 lacs (Previous year Rs. 128.85 lacs) and Rs.38.03 lacs (Previous year Rs.28.03 lacs) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

4) Company has not booked the income of Rs 85 Lacs (Previous year Rs NIL) as per agreement on the basis of which company has given security deport to one of the trust in which directors of the company are interested because in the opinion of the management there is a dispute with the trust and entire amount of security deport has been recalled.

5) Company has not made provision for service tax of Rs 321.64 lacs (Previous year Rs NIL) on the basis of show cause notice received form service tax department. In the opinion of the management same is under dispute and has been shown as contingent liability.

6) The Subsidiaries Companies made a combined net Loss of Rs. 4.78 lacs for the year ended 31st March, 2015. This loss together with the brought forward loss of Rs. 55.27 lacs has been carried to the Balance Sheet. The holding Company's Share of loss out of Rs. 60.05 lacs has not been dealt with in the holding Company's books of accounts.

7) Deferred Tax:

In accordance with Accounting Standard (AS)-22 on "Accounting for Taxes on Income Tax" issued by the Institute of Chartered Accountants of India and based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year.

8) Segment Reporting-Basis of Preparation

The segment reporting policy complies with the accounting policies adopted for preparation and presentation of financial statements of the company and is in conformity with Accounting Standard-17 on "Segment Reporting", as specified in the Companies (Accounting Standard) Rules,2006The primary segmentation is based on the nature and type of Services rendered. Segment assets and liabilities represented Net assets and liabilities of that segment.

9) There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

10) Previous year's expenditure accounted for under the respective heads of accounts during the current year is Rs.0.07 lacs (Previous year Rs. 0.10 lacs)

11) Additional information pursuant to Note 5 of Part-I I of the Schedule - III of the Companies Act, 2013 is given below to the extent applicable.

12) Previous year's figures have been regrouped/rearranged wherever considered necessary.


Mar 31, 2014

1. Company Overview

IEC Education Limited (the "Company') was incorporated on 23rd August,1994 in India as a public limited Company. The Company made an initial public offer in March, 1996. As at 31st March, 2014 the Company is listed on Three Stock exchanges in India namely Bombay Stock Exchange, Delhi Stock Exchange and Jaipur Stock Exchange. The Company has three Subsidiaries located in India. The Company's business consists of Computer education, Franchisee business & Personality development programme.

2. There is no change in the number of shares outstanding at the beginning and at the end of the period.

3. The company does not have any holding company.

4. The company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per shares. In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

5. The company has issued an aggregate of 20,00,000 upto 31/03/2014 (Previous period 50,00,000 upto 31/03/2013) equity shares in the last five years immediately preceding the balance sheet date to the warrant holders upon conversion of sharewarrants into fully paid equity shares of Rs.10/- each.

6. Contingent Liabilities not provided for:

Current Year Previous Year (Rs. in lacs) (Rs. in lacs)

Claims against the company not 72.84 72.84 Acknowledged as debt

7. In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables, the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

8. In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term & Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

9. No provision for doubtful Trade receivable and Long term loans & advances of Rs.128.85 lacs (Previous year Rs. 128.85 lacs) and Rs.28.03 lacs (Previous year Rs.38.03 lacs) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

10. The Subsidiaries Companies made a combined net Loss of Rs.6.81 lacs for the year ended 31st March,2014. This loss together with the brought forward loss of Rs.48.46 lacs has been carried to the Balance Sheet. The holding Company's Share of loss out of Rs.55.27 lacs has not been dealt with in the holding Company's books of accounts.

11. Segment Reporting - Basis of Preparation

The segment reporting policy complies with the accounting policies adopted for preparation and presentation of financial statements of the company and is in conformity with Accounting Standard-17 on " Segment Reporting", as specified in the Companies (Accounting Standard) Rules,2006.The primary segmentation is based on the nature and type of Services rendered. Segment assets and liabilities represent the net assets and liabilities of that segment.

12. Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below: Relationship:

a) Subsidiary Companies

IEC Leasing & Capital Management Ltd.

IEC Learning and Managements Ltd.

IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

Vocational Education Foundation.

Vocational Educational Trust.

IEC College of Engg.& Technology RLNG Infrastructure Pvt. Ltd.

c) Directors of the Company:

Brig.S.V.S.Chowdhry Non Executive Director

Mr. R.L. Gupta Non Executive Director

Mr. Kailash Nath Non Executive Director

Mr. Sarabjit Singh Saini Non Executive Director

Mr. Rasik Makker Non Executive Director

Mr. Girish Narang Non Executive Director

Dr. Naveen Gupta Managing Director

Mr. J.K. Bhola Non Executive Director

d) Relative of Directors and their enterprises where transactions have taken place:

Mrs. Shalini Gupta Mr. Dheeraj Mangal

13. There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

14. Previous year's expenditure accounted for under the respective heads of accounts during the current year is '.0.10 Thousands (Previous year Rs.2.06 lacs)

15. Previous year's figures have been regrouped / rearranged wherever considered necessary.


Mar 31, 2013

1. The above Cash Flow Statement has been prepared under the ACI-Indirect Method ACI- as set out in the Accounting Standard - 3 on Cash Flow Statement notified under the Companies (Accounting Standards) Rules,2006.

2. Cash and cash equivalents include AGA-.2.15 Lacs (Previous year AGA-.1.99 lacs) on account of fixed deposit earmarked and pledged which are not available for use in the Company.

3. Figure in brackets represent cash out flow from respective activities.

4. As breakup of Cash and cash equivalents is also available in Note No.2.13 reconciliation of items of Cash and cash equivalents as per Cash Flow Statement with the equivalents items reported in the Balance Sheet is not required and hence not provided.

5. Previous year figures have been regrouped/recasted wherever necessary.

(a) There is no change in the number of shares outstanding at the beginning and at the end of the period.

(b) The company does not have any holding company.

(c) The company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per shares. In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) The company has issued an aggregate of 50,00,000 up to 31/03/2013 (Previous period 50,00,000 up to 31/03/2012) equity shares in the last five years immediately preceding the balance sheet date to the warrant holders upon conversion of share warrants into fully paid equity shares of Rs. 10/- each.

(e) The company has issued an aggregate of 32,60,000 upto 31/03/2013 (Previous period 32,60,000 up to 31/03/2012) equity shares of AGA-. 10/- each without payment being received in cash in the last 5 years immediately preceding the balance sheet date pursuant to the scheme of arrangement.

(a) Nature ACY- Securities:- Term loan from banks is secured by charge by way of hypothecation of vehicles purchased under Vehicle Finance Scheme.

(b) Repayment Terms:- 35 monthly installments of Rs. 1,76,140/- from 15-08-2011 35 monthly installments of Rs. 1,93,980/- from 05-06-2011

6 monthly installments of Rs. 1,93,980/- from 05-06-2011

7 monthly installments of Rs. 1,43,873/- from 15-07-2011

(c) The interest rate for above term loan varies from 10.75 ACU- to 13.33 ACU-.

1) Contingent Liabilities not provided for: (in Rs.lac)

Current Year Previous Year

a) Claims against the company not 72.84 72.84 acknowledged as debt

b) Bank Guarantee 0.00 0.80

2) In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables, the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

3) In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term ACY- Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

4) No provision for doubtful Trade receivable and Long term loans ACY- advances of Rs.128.85 lacs (Previous year Rs. 128.85 lacs) and Rs.38.03 lacs (Previous year Rs.38.03 lacs) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

5) The Subsidiaries Companies made a combined net Loss of Rs.6.87 lacs for the year ended 31st March, 2013. This loss together with the brought forward loss of Rs..41.59 lacs has been carried to the Balance Sheet. The holding Company''s Share of loss out of Rs.48.46 lacs has not been dealt with in the holding Company''s books of accounts.

6) Deferred Tax: In accordance with Accounting Standard (AS)-22 on ACI-Accounting for Taxes on Income Tax ACI- issued by the Institute of Chartered Accountants of India and based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year.

7) Segment Reporting - Basis of Preparation

The segment reporting policy complies with the accounting policies adopted for preparation and presentation of financial statements of the company and is in conformity with Accounting Standard-17 on ACI-Segment Reporting ACI-, as specified in the Companies (Accounting Standard) Rules,2006.The primary segmentation is based on the nature and type of Services rendered. Segment assets and liabilities represent the net assets and liabilities of that segment.

8) Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below:

Relationship:

a) Subsidiary Companies

- IEC Leasing ACY- Capital Management Ltd.

- IEC Learning and Managements Ltd.

- IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

- Vocational Education Foundation

- Vocational Educational Trust

- IEC College of Engg. ACY- Technology

- RLNG Infrastructure Pvt. Ltd.

d) Relative of Directors and their enterprises where transactions have taken place:

Mrs. Shalini Gupta Mr. Dheeraj Mangal

9) There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

10) Previous year''s expenditure accounted for under the respective heads of accounts during the current year is Rs..2.06 lacs (Previous year AGA-.5.96 lacs)

11) Additional information pursuant to paras 3, 4C and 4D of Part-II of the Schedule - VI of the Companies Act, 1956 is given below to the extent applicable.

12) Previous year''s figures have been regrouped / rearranged wherever considered necessary.


Mar 31, 2012

A) There is no change in the number of shares outstanding at the beginning and at the end of the period.

b) The company does not have any holding company.

c) The company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per shares. In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) The company has issued an aggregate of 50,00,000 upto 31/03/2012 (Previous period 50,00,000 upto 31/03/2011) equity shares in the last five years immediately preceding the balance sheet date to the warrant holders upon conversion of share warrants into fully paid equity shares of Rs. 10/- each.

(e) The company has issued an aggregate of 32,60,000 upto 31/03/2012 (Previous period 32,60,000 upto 31/03/2011) equity shares of Rs. 10/- each without payment being received in cash in the last 5 years immediately proceeding the balance sheet date pursuant to the scheme of arrangement.

f) General recurve is primarily created to comply with the requirements of Section 205 (2A) of the Companies Act, 1956. This is a free reserve and can be utilized for any general purpose like issue of bonus shares, payment of dividend,buy back of shares etc.

a) Nature & Securities: Term loan from banks is secured by charge by way of hypothecation of vehicles purchased under Vehicle Finance Scheme.

b) Repayment Terms:

35 monthly instalments of Rs. 1,76,140/- from 15-08-2011 35 monthly instalments of Rs. 1,93,980/- from 05-06-2011

35 monthly instalments of Rs. 1,93,980/- from 05-06-2011

36 monthly instalments of Rs. 1,43,873/- from 15-07-2011

c) The interest rate for above term loan varies from 10.75% to 13.33%

1) Contingent Liabilities not provided for: (in Rs. lac)

Current Year Previous Year

a) Claims against the company not 72.84 72.84 acknowledged as debt

b) Bank Guarantee 0.00 0.80

2) In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

3) In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term & Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

4) No provision for doubtful Trade receivable and Long term loans & advances of Rs. 128.85 lac (Previous year Rs. 128.85 lac) and Rs. 38.03 (Previous year Rs. 69.69) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

5) The Subsidiaries Companies combined made a net Loss of Rs. 8.34 for the year ended 31st March, 2012. This loss together with the brought forward loss of Rs. 33.26 has been carried to the Balance Sheet. The holding CompanyRs.s Share of loss out of Rs. 41.60 has not been dealt with in the holding Company's books of accounts.

6) Deferred Tax: In accordance with Accounting Standard (AS)-22 on "Accounting for Taxes on Income Tax" issued by the Institute of Chartered Accountants of India and based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year.

7) Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below:

Relationship:

a) Subsidiary Companies

IEC Leasing & Capital Management Ltd.

IEC Learning and Managements Ltd.

IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

Vocational Education Foundation

Vocational Educational Trust IEC College of Engg. & Technology

c) Directors of the Company:

Brig. S.V.S. Chowdhry Non Executive Director

Dr. Naveen Gupta Managing Director

Mr. R.L. Gupta Non Executive Director

Mr. Kailash Nath Non Executive Director

Mr. Sarabjit Singh Saini Non Executive Director

Mr. Rasik Makker Non Executive Director

Mr. H.P Singh Non Executive Director

Dr. A.K. Khare Non Executive Director

Mr. J.K. Bhola Non Executive Director

d) Relative of Directors and their enterprises where transactions have taken place: Mrs. Shalini Gupta

Mr. Dheeraj Mangal

Note: Figures in brackets represent Previous Year's amount.

8) There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

9) Previous year's expenditure accounted for under the respective heads of accounts during the current year is Rs. 5.96 lac (Previous year Rs. 0.07 lac)

10) Previous year s figures have been regrouped / rearranged wherever considered necessary.


Mar 31, 2010

1) Contingent Liabilities not provided for :

Current Year Previous Year

a) Claims against the company not 72,83,646.00 75,24,828.00 Acknowledged as debt

b) Bank Guarantee 33,82,823.00 60,71,452.24



2) Based on the information presently available with the management no amounts are outstanding as at 31st March,2010 to micro, small and medium enterprises identified as per provisions of Micro, Small and Medium Enterprises Development Act,2006 (“MSMED Act”)

3) The Building purchased by the Company at M-92, Connaught Place, New Delhi, from the promoters in the earlier years is yet to be registered in the Companys name.

4) In view of the confirmation not having been obtained from the Sundry Debtors, Loans and Advances and Sundry Creditors the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

5) In the opinion of the Board of Directors, the Fixed Assets, the Current Assets and Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

6) No provision for doubtful debts and advances of Rs. 1,28,84,944.94 (Previous Year Rs. 1,28,84,944.94) and Rs. 51,03,404.45 (Previous Year Rs. 1,01,03,404.45) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

7) Security deposit under loans & advances Schedule include an amount of Rs. 10,00,00,000/- (Previous year Rs. 5,11,55,017.37) pursuant to agreements for business given to two trust in which two directors of the Company are interested. Further security deposit includes an amount of Rs.56,00,000/- (Previous year 56,00,000/-) given to one director of the Company.

8) Advance recoverable in Cash or in Kind under loans and advances Schedule include an amount of Rs.7,00,000/- (Previous Year Rs.49,00,000/- given to two director of the Company.

9) During the earlier year the company had issued 20,00,000 (twenty lakhs) fully convertible share warrants @ Rs.30/- each to the promoters and non promoter group.The company had received Rs.3/-per share warrant being 10% of total consideration. Since the balance payment could not be received within the stipulated time the amount of Rs.60,00,000/- received in earlier year has been forfeited and transferred to Capital Reserve.

10) The Subsidiary Company made a Loss of Rs.3,43,026.00 for the year ended 31st March,2010. This loss together with the brought forward loss of Rs.25,13,083.80 has been carried to the Balance Sheet. The holding Companys Share of loss out of Rs.28,56,109.80 has not been dealt with in the holding Companys books of accounts.

11) Amount of borrowing cost capitalized as per Accounting Standards (AS) -16 during the year was Rs. NIL

12) Segment Reporting (AS)-17

13) Disclosure in respect of operating leases under Accounting Standard (AS)-19 ‘Leases prescribed by the Companies (Accounting Standards) Rules, 2006.

a) General description of the Companys operating lease arrangements:

The Company enters into operating lease arrangements for leasing offices and residential Premises for its employees and students. Some of the significant term and conditions of the arrangements are :

- Agreements for most of the premises may generally be terminated by the lessee or either party by serving one to two months notice or by paying the notice period rent in lieu thereof.

- The lease arrangements are generally renewable on the expiry of lease period subject to mutual agreement.

- The Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

b) Lease rent charged to the profit and loss account Rs 5,67,000/-(previous year Rs. 15,05,065.00 )

14) Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below:

Relationship :

a) Subsidiary Companies

IEC Leasing & Capital Management Ltd IEC Learning and Managements Ltd. IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

Vocational Education Foundation

VEF Housing & Developers Pvt. Ltd.

Satguru Infracon Pvt.Ltd.

Sunway Energy Pvt. Ltd.

Vocational Educational Trust.



c) Directors of the Company:

Brig.S.V.S.Chowdhry Non Executive Director

Mr. L.C Goel Non Executive Director

Mr.R.L.Gupta Non Executive Director

Mr.Kailash Nath Non Executive Director

Mr. Sarabjit Singh Saini Non Executive Director

Mr. Rasik Makkar Non Executive Director

Mr. H.P Singh Non Executive Director

Mr. Navin Gupta Managing Director

Mr. H.R.Issarani Non Executive Director

Mr.A.K. Khare Non Executive Director

Mr. J.K.Bhola Non Executive Director

15) Previous years expenditure accounted for under the respective heads of accounts during the current year is Rs.64,927.85/- (Previous year Rs.2 ,60,297/-)

16) Previous years figures have been regrouped / rearranged wherever considered necessary.


Mar 31, 2009

1) Contingent Liabilities not provided for:

Current Year. Previous Year

a) Claims againstthe company not 75,24,828.00 1,34,79,000.00 Acknowledged as debt

b) Bank Guarantee 60,71,452.24 61,51,542.07

2) Based on the information presently available with the management no amounts are outstanding as at 31st March,2009 to micro,small and medium enterprises identified as per provisions of micro, small and medium enterprises development act,2006 ("MSMEDAct")

3) The Building purchased by the Company at M-92, Connaught Place, New Delhi, from the promoters in the earlier years is yet to be registered in the Companys name.

4) In view of the confirmation not having been obtained from the Sundry Debtors, loans and Advances, Sundry Creditors and one bank, the accounts are subject to adjustment on receipt of confirmation of balance and/or reconciliation of accounts the impact whereof on account cannot be ascertained at this stage.

5) In the opinion of the Board of Directors, the Fixed Assets, the Current Assets and Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet

6) No provision for doubtful debts and advances of Rs. 1,28,84,944.94 and Rs. 1,01,03,404.45 respectively has been made because in the opinion of management, these amounts are still good in nature and managements is hopeful of their recovery.

7) A Sum of Rs. 92271 lying in the Investor Education and Protection fund towards unpaid dividend has since been transferred to the. General Revenue Account to the Central Government after the due date owing to delay in reconciliation.

8) Security deposit under loans & advances Schedule include an amount of Rs. 51155017.37 (Previous year Rs. 20000000.00) pursuant to agreements given to two trust in which two directors of the Company are interested. Further security deposit includes an amount of Rs. 5600000/- (Previous year NIL) given to one director of the Company.

9) Advance recoverable in cash or in kind under loans and advances Schedule include an amount of Rs. 42,00,000/- Post merger (Pre merger Rs.NIL) given to one director of the Company.

10) a) In terms of a scheme of arrangement and order dated 06/01/2009 of the Honble High Court of Delhi, M/s VEF Information System Pvt. Ltd. has been Amalgamated with the Company w.e.f. 06/01/2009. Pursuant to said scheme , the Company has taken over all the assets , liabilities and obligations of VEF Information System Pvt. Ltd and accounted for under the Pooling of interest method as prescribed by Accounting Standard(AS-14) lssued by the lnstitute of Chartered Accountants of India.

b) Pursuant to above scheme, 32,60,000 equity shares of Rs.l0/-each have been issued as fully paid up to the shareholders of VEF Information System Pvt. Ltd. without Payment being received in cash in the proportion of 326 Equity Shares of Rs. 10/-each inlEC Education Ltd credited as fully paid up for every 100 equity shares of Rs.10/- each held by the shareholders in VEF Information System Pvt. Ltd.

c) Pursuant to above scheme of arrangement, the General Reserves of the Company have been reduced by Rs. 2,25,27,731.00 being the net excess of assets over liabilities taken over by the Company consequent on the amalgamation and as reduced by the face value of share issued to the shareholders of the erstwhile VEF Information System Pvt. Ltd .as under: Value of Assets taken over as at 6th January ,2009

d) Pursuant to above scheme of arrangement, and order dated 06/01/2009 of Honble High Court of Delhi, Debit Balance of Profit & . Loss Accounts of the Company has been adjusted against Capital Reserve and Share Premium Accounts.

e) M/s. VEF Information System P.Ltd is engaged in the business of information technology and provides educational and support services to certain private educational institutes.

11) The Subsidiary Company made a Loss of Rs.158163.00 for the year ended 31st March,2009. This loss together with the brought forward loss of Rs.2354920.80 has been carried to the Balance Sheet. The holding Companys Share of loss out of Rs.2513083.80 has not been dealt with in the holding Companys books of accounts.

12) Deferred Tax : In accordance with accounting standard As 22 on "Accounting for Taxes on Income Tax " issued by the Institute of Chartered Accountants of India and! based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year. The major components of deferred tax Assets/ Liabilities are as under:

13) Amount of borrowing cost capitalized as per Accounting Standards-16 during the year was Rs. NIL.

14) Disclosure in respect of operating leases under Accounting Standard (AS) - 19 Leases prescribed by the Companies (Accounting Standards) Rules, 2006.

a) General description of the Companys operating lease arrangements:

The Company enter into operating lease arrangements for leasing offices and residential premises for its employees and students. Some of the significant term and conditions of the arrangements are:

- agreements for most of the premises may generally be terminated by the lessee or either party by serving one to two months notice or by paying the notice period rent in lieu There of.

- The lease arrangements are generally renewable on the expiry of lease period subject to Mutual agreement.

- The Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

b) Lease rent charged to the profit and loss account Rs. 15,05,065.00 (Including prior period expenses Rs. Nil) (previous year Rs. 2,00,850.00).

c) The total of future minimum lease payments under non - cancelable operating leases is given below :-

Relationship:

a) SubsidiaryCompanies

IEC Leasing & Capital Management Ltd IEC Learning and Managements Ltd. IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place. Vocational Education Foundation

VEF Housing & Developers Pvt. Ltd. Satguru Infracon Pvt. Ltd. Sunway Energy Pvt. Ltd. Vocational Educational Trust.

a) Relative of Directors and their enterprises where transactions have taken place :- Mrs .Sharda Gupta Mrs. Shalini Gupta

15) Previous years expenditure accounted for under the respective heads of accounts during the current year is Rs.2,60,297 /- (Previous year Rs. 23,640/-)

16) Additional information pursuant to paras 3,4C and 4D of Part-ll of the Schedule - VI of the Companies Act, 1956 is given below to the extent applicable.

17) Previous years figures have been regrouped /rearranged wherever considered necessary.

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