SENSEX NIFTY India | Notes to Account > Computers - Software - Training > Notes to Account from CORE Education & Technologies - BSE: 512199, NSE: COREEDUTEC

CORE Education & Technologies

BSE: 512199|NSE: COREEDUTEC|ISIN: INE247G01024|SECTOR: Computers - Software - Training
CORE Education & Technologies is not traded in the last 30 days
CORE Education & Technologies is not traded in the last 30 days
« Mar 14
Notes to Accounts Year End : Mar '15
 The Company provides software development and related IT and
 Infrastructure services. The company has identified six business
 segments viz. Assessment, Governance, Learning, Teaching, Consulting &
 Advance Technology The accounting policies adopted for segment
 reporting are in line with the accounting policy of the company with
 following additional policies for segment reporting.
 (a) Revenue and expenses have been identified as allocable to a
 particular segment on the basis of relationship to operating activities
 of the segment, Revenue and expenses which relate to enterprises as a
 whole and are not allocable to a particular segment on reasonable basis
 have been disclosed as Unallocated Corporate Expenses.
 (b) Segment assets and segment liabilities represent assets and
 liabilities in respective segments. Investments, tax related assets and
 other assets and liabilities that cannot be allocated to a segment on
 reasonable basis have been disclosed as Unallocated Corporate Assets
 or Unallocated Corporate Liabilities as the case may be.
 During the year 2007, the company had introduced CORE Employee Stock
 Option Scheme - 2007 in accordance with the Securities and Exchange
 Board of India (Employee Stock Option and Employee Stock Purchase
 Scheme) Guidelines, 1999. The eligibility and number of options to be
 granted to an employee is determined on the basis of his/her
 experience, seniority, designation /job title, and their performance
 and as approved by the Board/Remuneration and Compensation Committee.
 The company has paid dividend in respect of shares held by
 Non-Residents on repatriation basis. This inter-alia includes portfolio
 investment and direct investment, where the amount is also credited to
 Non-Resident External Account (NRE A/c). The exact amount of dividend
 remitted in foreign currency cannot be ascertained. The total amount
 remittable in this respect is Nil:
 a) Estimated amount of contracts remaining to be executed on capital
 account and not provided for '' NIL /- (PY '' 500,747/-).
 a) Derivative contracts entered into by the Company and outstanding as
 on 31st March, 2015 For Hedging Currency & Interest Rate Risks:-
 For Nominal amounts of derivative contracts entered into by the Company
 and outstanding as on 31st March, 2015 amount to '' NIL (PY '' NIL-)
 b) Details of foreign currency exposures that are not hedged by a
 derivative instrument or otherwise:
 Foreign currency exposure (other than foreign operation) that are not
 hedged as on 31st March, 2015 amount to '' 7,498,685,617/- (PY ''
 6,733,939,592/-) on account of:
 a) Exceptional Items represents : - Investment w/off :
 As per the companies estimates on valuation for the investments made in
 various subsidiaries there was an indication that the investment has to
 be impaired. Hence the company has made provision as per AS -13 for
 diminution in the value of Investments totaling to '' 4,052,948,378 as
 on 31st March 2015.
 Receivables w/off
 During the year, customers have raised quality issues relating to
 assessment and intervention segment of the products. A management
 committee was formed to analyses and suggest the future course of
 action. Customers in this segment would, generally make additional
 improvements on the products sold to them and further sell the
 upgraded/final product to their customers. During negotiations, these
 customers have alleged that due to defective products supplied by CORE,
 they have lost their contracts with reputed clients and have claimed
 compensation. To avoid the legal claims and disputes in future and to
 have continuity in overseas operations, the committee has decided to
 write off the receivables of '' 1,730,436,995 and settle with customers.
 IPR Impairment:
 During the year, management has reviewed the carrying value of it''s IPR
 in view of the adoption of Common Core States Standard
 Initiative(CCSSI) in the United States of America (USA) where these
 assets were substantially used. The CCSSI is an education initiative in
 the USA that seeks to establish consistent education standards across
 the states as well as ensure that students graduating from high school
 are prepared to either two or four year college programs or enter the
 workforce. Prior to the CCSSI, each state had its own education
 standards and Company had the required resources and capability to
 deliver the solutions. However with the change in regulations and
 requirements, company has been investing in upgrading to the CCSSI to
 deliver the solutions consistently and as per requirement. With the
 CCSSI now in place, all the old products of the company that were
 aligned to the erstwhile State Standards have become partially
 redundant. Whilst the erstwhile State Standards will run parallel with
 the CCSSI for a few years, thus making the old products still
 commercially relevant, the company has, out of abundant caution, and
 with a conservative view, decided to fully write down these products.
 Management has made provision for impairment of '' 3,287,844,535 towards
 the carrying cost of such IPRs which has been treated as exceptional
 item. The IPRs aligned to CCSI are carried at cost.
 (b) Going Concern:
 The Company''s finances continued to be under stress which is evident
 from decrease in sales revenue, increase in overdue trade receivables
 and payables, salary arrears and arrears of statutory dues, over dues
 (interest and repayment of borrowings) of banks, financial institutions
 and finance lease obligations. To mitigate the financial stress, the
 company has taken various steps including cost cutting exercise and
 opted for Corporate Debt Restructuring (CDR) plan which has been
 admitted and is subject to final approval from its lenders. Also,
 during the year a promoter company has infused '' 51,20,80,907 as an
 advance under the aforesaid restructuring Plan.  The management is
 confident of approval of the restructuring package of the loans under
 CDR, improve the operating margins and collection from trade
 receivables. Despite there being possible material uncertainty in this
 regard, management is confident of meeting its financial obligations.
 and hence, these financial statements have been prepared on the basis
 of going concern assumption.
 (c) Haryana ICT
 The company had entered into a contract with the State of Haryana on
 25.03.2011 to install and maintain computer labs in 2,622 schools under
 the ICT program. The project was completed as per the contract and the
 maintenance part of the contract was in operation since last couple of
 years. Due to various reasons, chief among them being non-receipt of
 payments from the State Government, the company had partially ceased to
 service the contract during the year. In spite of on-going negotiations
 taking place between the company and the State Governments to revive
 the project, the company received a termination order from the State on
 23.04.2014 and forfeiture of bank guarantee of '' 29,50,00,000. The
 company filed a Special Leave Petition with the Supreme Court on
 28.04.2014 and in response to which the Supreme Court granted a stay on
 the termination Order and forfeiture of bank guarantee for a period of
 3 weeks. The stay is currently in operation.  The company believes that
 it has strong case in this matter. Pending outcome of the legal
 proceedings, no adjustment has been made to the carrying value as at
 31st March, 2015 of receivables of '' 74,83,19,014 and of the fixed
 assets of '' 100,21,44,968 at this stage, for this project.
 (d) Trade receivable overdue for more than six months period includes ''
 4,655,855,013 dues from customers in assessment segment. Based on the
 discussion with the customers, management is confident of recovering
 the dues. The customers have confirmed the year end balances and
 therefore no provision for doubtful debts is considered necessary at
 this stage. Out of the total Debtors of '' 4,801,085,391 debtors of ''
 1,898,559,608 are receivable from the subsidiaries
 (e) Company had purchased computer equipments for ICT projects on
 financial lease and has taken term loan from Hewlett Packard Financial
 Services (India) Private Limited (HPFS). During the year, a
 restructuring agreement has been entered into and a repayment schedule
 has been restructured for both finance lease and the loan as a
 consolidated amount. In the absence of breakup of future repayments of
 lease and loan, the disclosures pertaining to finance lease obligations
 has not been made.
 (f) In the opinion of the Board of Directors, other current assets have
 a value on realization in the ordinary course of the company''s
 business, which is at least to the amount at which they are stated in
 the balance sheet.
 (g) Advances, Trade payables and few trade receivable balances are
 subject to confirmation and reconciliation, if any
 (h) These accounts of Core Education & Technologies Ltd. include
 accounts of its two overseas branches.
 (i) Application to RBI has been made for overseas debtors outstanding
 for a period of more than 1 year but the approval from RBI is pending.
 (j) The FCCB redemption date was 7th May 2015 but the company has
 still not redeemed the FCCB
 (k) Share Application money of Core Education INC is still not
 converted into equity shares for more than 1 year. The Company is in
 the process of making application to RBI for the approval of the same
 (l) Previous year''s figures have been regrouped / reclassified wherever
 necessary to correspond with the current year''s classification /
Source : Dion Global Solutions Limited
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