1) We have audited the attached Balance Sheet of IEC Education Ltd
(the Company) as at 31st March, 2011, the Profit & Loss Account and
the Cash Flow Statement of the Company 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 the auditing standards
generally accepted in India. These 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 presentation of
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3) As required by the Companies (Auditor''s Report) Order, 2003,(CARO)
issued by the Central Government in terms of sub section (4A) of
section 227 of the Companies Act,1956, we enclose in the annexure, a
statement on the matters specified in paragraph 4 and 5 of the said
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
(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 such
(c) The Balance Sheet, Profit & Loss Account and Cash flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet, Profit & Loss Accounts and Cash
Flow statement dealt with by this report are in compliance with the
Accounting Standards referred to in sub-section (3c) of Section 211 of
the Companies Act, 1956.
(e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2011 and taken on record by the Board
of Directors, we report that the none of the Directors is disqualified
as on 31st March, 2011 from being appointed as a director of the
Company in terms of clause (g) of sub-section (I) 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 financial statements subject to:
(i) Note No: 4 of Schedule 20 regarding non registration of title deeds
in respect of one premise;
(ii) Note No: 5 of Schedule 20 regarding adjustments of entries arising
out of confirmation / reconciliation of the accounts of parties and
(iii) Note No:9 of Schedule 20 regarding non provision of debts and
advances considered doubtful amounting to Rs..1,28,84,944.94 and
Rs..69,68,526.45 respectively, and read together with the notes and the
significant accounting policies thereon, 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011.
II. In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date ; and
III. In the case of Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
Annexure to the Auditor''s Report (Referred to in paragraph 3 of our
report of even date on the accounts of IEC Education Ltd for the year
ended 31st March, 2011)
I. In respect of its fixed assets:
a) The Company has maintained fixed assets register. However in some
cases item wise depreciation, location or quantity were not maintained
in the fixed asset register.
b) The management has not carried out a physical verification of all
the fixed assets but there is a regular programme of verification which
in our opinion is reasonable having regard to the size of the company
and nature of its assets. To the best of our knowledge, no material
discrepancies were noticed in respect of assets verified during the
c) During the year, the Company has not disposed off substantial part
of its fixed assets.
II. The nature of the company''s business/activities during the year
have been such that clause (ii) of paragraph 4 is not applicable to the
Company for the year.
III. a) The Company has not granted any loan, Secured or Unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.Accordingly Clauses
(iii)(b) to (iii)(d) of the Order are not applicable. b) The Company
has not taken any loan, Secured or Unsecured, from companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act,1956.Accordingly clauses (iii) f and (iii) g of the
Order are not applicable.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regards to purchase of components, plant and machinery, equipments
and similar assets and also for sale of goods and services. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control system in respect of these areas.
V. a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act have been entered in the register
required to be maintained under that Section. b) In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements and
exceeding the value of rupees five lakhs in respect of any party during
the year, have been made at prices which are reasonable having regard
to the prevalent market prices at the relevant time other than
transactions of special nature for which competitive quotations are not
available. However on the basis of information and explanations
provided , the same appear reasonable.
VI. The Company has not accepted any deposits from the public and
hence the directives issued by the Reserve Bank of India and the
provision of section 58A and 58 AA of the Companies Act, 1956 and the
rules framed hereunder, are not applicable to the Company.
VII. In our opinion, the Company''s present internal audit system is
commensurate with the size and nature of its business.
VIII. Since the Company is not a manufacturing, mining or processing
industry, the Central Government has not prescribed the maintenance of
cost records under Section 209 (1) (d) of the Companies Act, 1956.
IX. According to the information and explanation given to us and the
records of the Company examined by us, in our opinion the Company has
been generally regular in depositing undisputed statutory dues
including Provident fund, Investor education and protection fund,
Employees state insurance, Income tax, Sales tax, Service tax , Wealth
tax, Custom duty, Excise duty and Cess and any other statutory dues
applicable to it, with the appropriate authorities.
X. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
XI. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institutions or bank during the year.The Company did not have
any outstanding dues to any debenture holders during the year.
XII. According to the information and explanation given to us and
based on the documents and records produced to us, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
XIII. In our opinion, the company is not a Chit fund or Nidhi / Mutual
benefit fund/ society. Therefore the provision of clause 4 (xiii) are
not applicable to the Company.
XIV. In our opinion, the Company is not dealing or trading in share,
securities, debentures and other Investments. Accordingly, the
provisions of clause 4 (xiv) are not applicable to the Company.
XV. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions during the year.
XVI According to the information and explanation given to us, no term
loan has been raised during the year.
XVII.According to information and explanation given to us and on an
overall examination of Balance Sheet of the Company, we report that no
funds raised on short term basis have been used for long-term
investment and no long term funds have been prima facie used to finance
short term assets.
XVIII.The Company has not made during the year 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 raised any loan during the year through issue
of debentures; hence the provision of clause 4 (xix) are not applicable
to the Company.
XX. The Company has not raised any money through a public issue during
the year, hence the provision of clause 4 (xx) are not applicable to
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
Place :- New Delhi For NATH & HARI
FR No: 007403N
Date :- 23rd August, 2011