We have audited the accompanying standalone financial statements of
Navneet Education Limited which comprises the Balance Sheet as at 31st
March, 2016, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended and a summary of the significant accounting
policies and other explanatory information.
Management''s responsibility for the 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 and presentation 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 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.
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 thereunder.
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 disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
risks of material misstatement of 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 accounting estimates made by the Company''s
directors, as well as evaluating the overall presentation of financial
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 March 31, 2016, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2016 (the
Order), as amended, issued by the Central Government of India in terms
of section 143(11) of the Companies Act 2013, we give in the Annexure
A, a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by the 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 beliefs were necessary for the
purpose 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
(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 aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rule, 2014.
(e) on the basis of written representations received from the directors
as on March 31, 2016, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2016, from being
appointed as a director in terms of sub-section (2) of section 164 of
the Act; and
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate Report in Annexure B.
(g) 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) the Company has disclosed the impact of pending litigations on the
financial position in its financial statements as of 31st March, 2016 -
Refer Note 26 to the financial statements
(ii) the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
(iii) there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
To the Members of Navneet Education Limited ANNEXURE TO THE INDEPENDENT
(Referred to in Paragraph 1 under the heading of Report on Other Legal
& Regulatory Requirements of our report of even date to the financial
statements of the Company for the year ended 31st March, 2016)
1. (a) As per the information and explanations given to us, the Fixed
Assets register showing full particulars including quantitative details
and situation of Fixed Assets is compiled by the Company.
(b) The fixed assets have been physically verified by the management at
regular intervals and no material discrepancies were found on such
verification. In our opinion the intervals for verification are
reasonable having regard to the size of the company and the nature of
(c) The title deeds of immovable properties are held in the name of the
2. (a) The management has conducted the physical verification of
inventory at reasonable intervals.
(b) The discrepancies noticed on physical verification of the inventory
as compared to books records which has been properly dealt with in the
books of account, were not material.
3. The Company has not granted any loans, secured or unsecured to
companies, firms, Limited Liability Partnerships or other parties
covered in the Register maintained under section 189 of the Act.
Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order
are not applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
185 and 186 of the Companies Act, 2013, in respect of loans,
investments, guarantees, and security.
5. The Company has not accepted any deposits during the year from the
public within the meaning of the directives issued by the Reserve Bank
of India and the provisions of sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there under.
6. The company is governed by section 148(1) of the Act. Accordingly
the company has prepared and maintained such accounts and records. We
have not, however, made a detailed examination of the records with a
view to determine whether they are accurate or complete.
7. (a) According to the information and explanation given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues in respect of provident
fund, employee''s state insurance, income tax, VAT, service tax, duty of
customs, cess and others as applicable have been regularly deposited by
the company during the year with appropriate authorities. As on March
31, 2016, there are no such undisputed dues payable for a period of
more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no material dues outstanding of VAT, income tax, custom duty, service
tax, excise duty and cess, which have not been deposited on account of
any dispute except for the following :
Period to Forum where
Name of the Nature of Amount
which the the dispute is
Statute Dues in Lac
Central Sales Sales Tax/ 8.11 2004-05 Appellate
Tax Act and VAT/CST Tribunal
local sales 1,401.62 2007-08
tax/VAT Act of
various states 1,403.04 2008-09 Departmental
212.44 2009-10 Appellate
305.18 2010-11 Appeal
340.72 2011-12 Pending to be
8. According to the information and explanation given to us, the
Company has not defaulted in repayment of dues to financial
institution, banks or debenture holders during the year.
9. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not raised moneys
by way of initial public offer or further public offer including debt
instruments and term loans. Accordingly, the provisions of clause 3
(ix) of the Order are not applicable to the Company and hence not
10. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud by the
Company or on the company by its officers or employees has been noticed
or reported during the year.
11. Based upon the audit procedures performed and the information and
explanations given by the management, the managerial remuneration has
been paid or provided in accordance with the requisite approvals
mandated by the provisions of section 197 read with Schedule V to the
12. In our opinion, the Company is not a Nidhi Company. Therefore, the
provisions of clause 4 (xii) of the Order are not applicable to the
13. In our opinion, all transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 and the
details have been disclosed in the Financial Statements as required by
the applicable accounting standards.
14. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not made any
preferential allotment or private placement of shares or fully or
partly convertible debentures during the year under review.
Accordingly, the provisions of clause 3 (xiv) of the Order are not
applicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into
any non-cash transactions with directors or persons connected with him.
Accordingly, the provisions of clause 3 (xv) of the Order are not
applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under
section 45 IA of the Reserve Bank of India Act, 1934 and accordingly,
the provisions of clause 3 (xvi) of the Order are not applicable to the
Company and hence not commented upon.
For GBCA & Associates
(Firm Registration Number: 103142W)
Haresh K. Chheda
Membership Number: 38262
Place : Mumbai
Date : 21st May, 2016