1. Report on the Financial Statements
We have audited the accompanying financial statements of Core Education
& Technologies Limited (the Company),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, and a summary of significant
accounting policies and other explanatory information.
2. 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 fair presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
3. Auditor''s 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 auditor''s judgement, 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 audit opinion.
4. opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit 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.
5. report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s 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 sub-section (3) of section 227 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 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 appears from our examination of
those books;
c. the Balance Sheet, 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Act; and
e. on the basis of the written representations received from the
directors as on March 31, 2013, 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 Act.
referred to in Paragraph 1 under the heading of report on other Legal
and regulatory requirements of our report of even date
(i) In respect of fixed assets : -
(a) The Company has maintained proper records showing the particulars,
including quantitative details and situation of its fixed assets except
for the assets at its overseas branches and BOOT Projects where the
records are stated to be under compilation.
(b) As explained to us, the fixed assets have been physically verified
by the management in accordance with a phased programmed of
verification, which in our opinion is reasonable, considering the size
and nature of its business. No material discrepancies were noticed on
such physical verification of assets.
(c) No substantial part of the fixed assets has been disposed off
during the year.
(ii) The inventories of the company comprises of software work-in-
progress. Being intangible, the same could not be physically verified
by the management. Hence, clause (ii) of paragraph 4 of the Order is
not applicable.
(iii) The Company has neither granted nor taken any loan, secured or
unsecured to/from companies, firms and other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956 and
hence clause (iii) of paragraph 4 of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, on an overall basis there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and sale of products and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in respect of these areas.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
there are no transactions that need to be entered into the register in
pursuance of section 301 of the Companies Act. Hence clause (v) (b) of
paragraph 4 of the Order are not applicable.
(vi) We are informed that the Company, has not accepted any public
deposits covered under the provisions of section 58A of the Companies
Act, 1956 and the rules framed there under. We are also informed by the
Company''s management that no order has been passed by the Company Law
Board or any other authority.
(vii) During the year, the Company had an internal audit system
commensurate with the size of the company and the nature of its
business.
(viii) According to the information and explanations given to us, the
requirement for maintenance of cost records u/s 209 (1) (d) of the
Companies Act, 1956 is not applicable to the Company.
(ix) (a) Based on test-verification of records and information and
explanations given to us, the Company is not regular in depositing with
appropriate authorities undisputed amount of statutory dues including
Sales Tax, State Value Added Tax, Service Tax, Employee State
Insurance, Provident Fund, Profession Tax, Advance Tax and Tax deducted
at source.
(b) According to the information and explanations given to us
undisputed amounts, in respect of the statutory dues referred above
outstanding as at 31st March, 2013 for a period of more than six months
from the date they became payable are as under:
nature of Dues Amount Period to which amount
relates
Tax Deducted at Source 83,334,356 1st November 2011 to 31st
August 2012
VAT 32,207,046 1st November 2011 to 31st
August 2012
Total 115,541,402
(c) According to the information and explanations given to us, there
are no dues payable by the Company, under the Investor Education and
Protection Fund.
(d) According to the information and explanations given to us, there
are no statutory dues of Sales Tax, State Value Added Tax, Income Tax
and Service Tax, which have not been deposited, on account of any
dispute.
(x) The Company has no accumulated losses at the end of the financial
year. The Company has not incurred cash losses during the financial
year covered by our audit or in the immediately preceding financial
year.
(xi) Based on our Examination of records and according to information
and explanation given to us the Company has defaulted in payment of
dues to Bank and financial institution during the year as under:
Amount in Rs.
Delay in
number of days Banks Financial institutions cash credit/
overdraft
Facilities
interest Principal interest Principal overdrawn
(Minimum
to Maximum)
Upto
60 days 255,020,423 456,263,089 38,360,625 - 2,67,418 -
64,45,179
Upto 61
-120 days 12,290,374 94,000,000 - - -
Further Company has Continuing Default in respect of following dues to
bank/Financial institutions as at year ended:
Amount in Rs.
Delay in
number of days Banks Financial institutions cash credit/
overdraft
Facilities
interest Principal interest Principal overdrawn
(Minimum
to Maximum)
Upto 60
days 19,235,314 177,773,148 - - 8,071,775
Upto 61
-120 days - 306,219,121 - - -
Company has not defaulted in repayment of dues to debenture holder
during the year.
(xii) Based on our examination of records and according to the
information and explanations given to us, the Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other investments.
(xiii) The Company is not a chit/nidhi/mutual benefit fund/society and
therefore provisions of clause 4 (xiii) of the Order are not applicable
to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has given the guarantee of Rs. 4,182,237,159 for loans taken by
its wholly owned subsidiary, viz. Core Education and Consulting
Solution, Inc. from bank and/or financial institutions. In our opinion
and according to information and explanations given to us, the terms
and conditions, though not formalized, are not prejudicial to the
interest of the company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans taken during the year were applied for the
purpose for which they were taken.
(xvii) According to the information and explanation given to us and on
overall examination of the balance sheet of the Company, we report
that, prima-facie no funds raised on short-term basis have been used
for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Act.
(xix) The company has created securities/charges in respect of the
secured debentures issued in earlier year.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For chaturvedi & Shah For Asit Mehta & Associates
Firm Registration Number: 101720W Firm Registration Number: 100733W
Chartered Accountants Chartered Accountants
Jignesh Mehta Sanjay rane
Partner Partner
Membership No.: 102749 Membership No.: 100374
Place : Mumbai Place : Mumbai
Date : May 30, 2013 Date : May 30, 2013 |
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