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Everonn Education Ltd.

BSE: 532876 | NSE: EVERONN | Series: NA | ISIN: INE678H01010 | SECTOR: Computers - Software - Training

BSE Live

Nov 03, 15:51
12.25 0.00 (0.00%)
Volume
No Data Available
306,223
  • Prev. Close

    12.25

  • Open Price

    12.95

  • Bid Price (Qty.)

    12.25 (280)

  • Offer Price (Qty.)

    12.25 (2668)

Everonn Education is not traded on BSE in the last 30 days

NSE Live

Nov 03, 15:57
12.15 0.00 (0.00%)
Volume
No Data Available
769,754
  • Prev. Close

    12.15

  • Open Price

    12.25

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    12.15 (39)

Everonn Education is not traded on NSE in the last 30 days

Annual Report

For Year :
2015 2013 2012 2011 2010 2009 2008 2007

Auditor's Report

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