Auditors
To The Members of
MT EDUCARE LIMITED
1. We have audited the attached Balance Sheet of MT EDUCARE LIMITED ("the
Company") (Earlier MT EDUCARE PRIVATE LIMITED), as at 31st March, 2012, the
Statement of Profit and Loss & Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility ofthe 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 auditing standards generally accepted in
India. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatements. 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
financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003 as amended by the
Companies (Auditor`s Report) (Amendment) Order,2004, issued by the Central Government of
India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such checks of the books and records of the Company as we considered appropriate
and according to the information and explanations given to us, we set out in the Annexure
a statement on the matters specified in paragraph 4 & 5 of the said order.
4. Further to our comments, in the Annexure referred to in Paragraph 3 above, we report
that:-
i. We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purpose of our audit;
ii. In our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examinations of those books;
iii. The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt
with by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
v. On the basis of written representations received from the Directors, as on 31st
March 2012, and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March, 2012 from being appointed as a director in
terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956;
vi. In our opinion and to the best of our information and according to the explanations
given to us, the said financial statements together with notes thereon and attached
thereto, give in the prescribed manner the information required by the Companies Act, 1956
and give a true and fair view in conformity with the accounting principles generally
accepted in India:
a) in the case of the Balance Sheet, of the State of the Affairs of the Company as at
31st March, 2012;
b) in the case of the Statement of Profit & Loss , of the Profit for the year ended
on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
For Shaparia & Mehta
Chartered Accountants
Firm Reg No: 112350W
Sanjiv B Mehta
Partner
Membership No. : 034950
Place : Mumbai
Date : 26 May, 2012
Annexure to the Auditors` Report
i. (a) The Company has maintained location wise records of fixed assets in excel sheet
in terms of value and quantity. [Paragraph 4(i)(a)]
(b) All fixed assets have not been physically verified by the management during the
year but there is an annual programme of verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification. [Paragraph 4(i)(b)]
(c) In our opinion and according to the information and explanations given to us, a
substantial part of fixed assets has not been disposed off by the Company during the year.
[Paragraph 4(i)(c)]
ii. The Company is engaged in providing services and primarily engaged in the business
of providing commercial training and coaching. Accordingly it does not hold any physical
inventory, thus the provisions of Paragraph 4(ii) of the order are not applicable to the
Company. [Paragraph 4(ii)(a), 4(ii)(b) and 4(ii)(c)]
iii. (a) According to the information and explanations given to us the Company has
granted unsecured loan to one party covered in the register maintained under section 301
of the Companies Act 1956. [Paragraph 4(iii)(a)]. The Closing Balance as on 31.03.2012 is
Rs. 1.79 lakhs and the maximum balance outstanding during the year is Rs. 1.79 lakhs.
| Particulars |
No of Parties |
Amount |
|
|
(Rs. in lakhs) |
| Opening balance |
1 |
0.17 |
| Loan granted during the year |
1 |
1.62 |
| Loan recovered during the year |
0 |
0.00 |
| Closing balance |
1 |
1.79 |
(b) No Interest is charged on the unsecured loans. In our opinion and according to the
information and explanations given to us the terms and conditions of such loans are not
prima facie prejudicial to the interest of the Company. [Paragraph 4(iii)(b)]
(c) In the absence of specified due dates for the repayment of loans granted, the
question of irregularity does not arise [Paragraph 4(iii)(c)]
(d) In respect of the aforesaid loans, there is no overdue amount of more than Rs. One
lakh. [Paragraph 4(iii) (d)]
(e) The Company has not taken any loans, secured or unsecured from the Companies, firms
or other parties covered in the Register maintained under Section 301 of the Companies
Act, 1956. Hence the question of reporting under Paragraph 4(iii)(e), 4(iii)(f), and
4(iii)(g) does not arise.
iv. In our opinion and according to the information and explanations given to us, 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 for the sale of services.
During the course of our audit no major weakness has been noticed in the internal control
system in respect of these areas. The activities of the Company do not involve purchase of
inventory and sale of goods. [Paragraph 4(iv)]
v. (a) To the best of our knowledge and according to the information and explanations
given to us, we are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Act that need to be entered into the register maintained
under Section 301 have been so entered. [Paragraph 4(v)(a)]
(b) In our opinion and according to the information and explanations given to us, in
respect of lecture services rendered, these being of professional nature, the market
values are not readily ascertainable. The transactions made in pursuance of such contract
or arrangements are made at prices which are reasonable. [Paragraph 4(v)(b)]
vi. The Company has not accepted any deposits from public within the meaning of
Sections 58A and 58AA or any other relevant provisions of the Act and the rules framed
there under. [Paragraph 4(vi)]
vii. In our opinion, the Company has an internal audit system which is commensurate
with the size of the Company and the nature of its business. [Paragraph 4(vii)]
viii. To the best of our knowledge and as explained, the Central Government has not
prescribed maintenance cost records under clause (d) of sub-section (1) of Section 209 of
the Companies Act, 1956 for the products of the Company. [Paragraph 4(viii)]
ix. According to information and explanations given to us and according to the books
and records examined by us, in our opinion, the Company is generally regular in depositing
with appropriate authorities undisputed statutory dues including provident fund, income
tax, service tax, cess and other material statutory dues applicable to it. [Paragraph
4(ix)(a)]
Details of dues of income tax which have not been deposited as on March 31, 2012 on
account of any dispute are given below [Paragraph 4(ix)(b)] :
| Nature of Statute |
Nature of Dues |
Amount Involved lakhs) |
Period to which the amount relates. |
Forum where the dispute is pending. |
| The Income-Tax Act, 1961 |
Income Tax |
57.48 |
A.Y. 2007-08 |
Income Tax Tribunal |
| The Income-Tax Act, 1961 |
Income Tax |
53.77 |
A.Y. 2009-10 |
Income Tax Tribunal |
x. The Company has no accumulated losses as on 31st March, 2012. The Company has not
incurred any cash losses in the Current financial year and in the immediately preceeding
financial years hence clause (x) of Paragraph 4 of the order is not applicable to the
Company. [Paragraph 4(x)]
xi. Based on our audit procedures and on the information and explanation given to us,
in our opinion the Company has not defaulted in repayment of dues to banks as at the
balance sheet date. The Company has no dues in respect of financial institutions and has
not issued any debentures during the year. [Paragraph 4(xi)]
xii. According to the information and explanations given to us and based on the
documents and records produced to us, the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and other securities.
[Paragraph 4(xii)]
xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit/
society. Therefore the provisions of clause 4(xiii) of the order are not applicable to the
Company. [Paragraph 4(xiii)]
xiv. In our opinion and according to the information and explanations given to us, the
Company is not a dealer or trader in securities. The Company has invested surplus funds in
mutual funds. According to the information and explanations given to us, proper records
have been maintained of the transactions and contracts and timely entries have been made
therein. The mutual fund units have been held by the Company, in its own name. [Paragraph
4(xiv)]
xv. In our opinion and according to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from banks or financial
institutions during the year. [Paragraph 4(xv)]
xvi. In our opinion and according to the information and explanations given to us, the
Company has not availed any term loan during the year covered by our report. [Paragraph
4(xvi)]
xvii. According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds raised on
short-term basis have been used for long-term investment. [Paragraph 4(xvii)]
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 during the year.
[Paragraph 4(xviii)]
xix. In our opinion and according to the information and explanations given to us, the
Company has not issued any debentures during the year covered by our report. [Paragraph
4(xix)]
xx. The Company concluded its initial public offering on March 29, 2012, with the
allotment of shares on April 10, 2012. The Company is yet to utilise any monies raised
through the issue as of March 31, 2012, and it has deposited the money in Escrow account
with Axis Bank Ltd. and ICICI Bank Ltd. [Paragraph 4(xx)]
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 fraud on or by the Company, noticed or reported during the year, nor have we
been informed of such case by the management. [Paragraph 4(xxi)]
For Shaparia & Mehta
Chartered Accountants
Firm Reg No: 112350W
Sanjiv B Mehta
Partner
Membership No. : 034950
Place : Mumbai
Date : 26 May, 2012
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